it's 5:00 a.m. here at cnbc global headquarters. welcome to "worldwide exchange." here's your "five@5." holding on.

stocks trying for the longest weekly win streak since may as investors are diffigesting the hotter than expected cpi report. no steering? no pedals? no problem. we will get the investor take coming up. $100 billion and counting. estimates on the rising cost of hurricane milton as the clean-up efforts get under way in florida. and jpmorgan and wells fargo kick off the earnings season. and later today, the 2024 republican election playbook and why the real swing vote could be union members. it's friday, october 11th, 2024. you are watching "worldwide exchange" here on cnbc. ♪ good morning. happy friday. thank you for being with us. i'm frank holland. we will have more on the tesla

robotaxi unveil in a moment. first, we are watching the shares. they are crushed in the pre-market. you see the chart. big dropoff down 6% in the pre-market. we will talk much more about this and get the investor take coming up in a bit later in the show. let's kick off the check of the u.s. stock futures. stock futures under pressure. the s&p lower. the s&p would open 60 points lower. nasdaq down almost a .25%. stocks are trying to hold on to slim gains with the major averages tracking for a five-week win streak. slim games on the nasdaq up over .75%. s&p up over .50%. we want to take a look at some of the stocks that cramer highlighted yesterday. by the way, happy belated two-year birthday to the bull market. cramer highlighted the stocks

yesterday. these are the stocks that led the bull market. i don't think we gave it a proper happy birthday yesterday. i don't think anyone is surprised by this one. nvidia shares up over 1,000 in the last two years. p palantir and fair isaac. we want to take a look at the pre-market moves. you see the moves they are making in the pre-market one day after the two-year birthday of the bull market. all of them trading lower with the exception of fair isaac. vistra energy down. we want to check the treasury market with the yields higher with yesterday's cpi print. ppi is coming out this morning. the two-year back below 4% yield. the long bond gaining a bit. a few basis points from

yesterday. remember, this sis a read on inflation expectation. we are looking at shares of amd closing down 4% after the launch of the response to the blackwell chip. week to date down over 3.5%. you see the drop following that event yesterday. we will get into that later in the show. coo lisa su speaking with cnbc following the event. here's what she had to say. >> i think the demand for the overall a.i. landscape is really, really very excited. we actually updated our view of the overall market. last year when we talked at this time, we thought the overall market size would be 400 billion. we are now extending that to 2028. we expect the growth rate to continue to be very high. >> we are keeping a close eye on the banks this morning with the financials trading near record highs.

jpmorgan chase and wells fargo and blackrock report later today. you see jpm down fractionally. wells fargo down .50%. blackrock up almost .50%. that's the set up. let's see how europe is closing out this week as its friday trading is under way. we have dan murphy here from abu dhabi. >> good morning, frank. european markets are on track to close out a volatile week with the bias to the down side. we saw autos leading declines with shares of stellantis down 2.5%. markets turning cautious ahead of the critical policy briefing from china set to take place tomorrow. i wanted to zero in on what we saw in the uk today. uk monthly gdp data was out. we saw gdp up 0.2% in august.

call it a rebound or a rounding error. it comes after stagnation and n in june and july. strength in the services sector has investors dialing back expectations for boe rate cut. the uk is an interesting market to watch. you see firmly in negative territory down 0.11%. dax and the french paris cac 40 managing to ek out modest gains. ftse mib down 0.16%. frank, back to you. >> dan, thank you very much. dan murphy in abu dhabi. and following the hotter than expected cpi data showing inflation is more stubborn than the fed would like. the cme fed watch tool shows an 80% chance of a quarter point

move. joining me now is gina sanchez. gina, good morning. it's great to have you here. >> thank you, frank. >> we were just looking at the odds of the traders pricing in the cut at the november meeting. it increased from yesterday with the hotter than expected cpi. we had hotter than expected jobless claims as well. >> i was surprised in that both of those numbers would actually at least start to point toward a pause. we know from the minutes that this wasn't exactly the super jumbo cut wasn't all hands raised for that. you do have to think there has to be more wiggle room. the markets are just not priced for it. >> yesterday, we heard from raphael bostic saying he was okay with the pause. in your mind, if we do get that pause, what does that do to the

markets? does it impact certain sectors or does it hit the market more broadly? >> well, i think it hits the markets broadly. i will say we're about to get bank earnings. the banks have been suffering under this, you know, inverted yield curve that feels like it's been going on forever. we are starting to see that unwind. a slightly better outlook on the economy, plus the fed cutting, that should have righted that yield curve. you have to wonder if we do get a pause, what does that do to the outlook for banks if they have to suffer farther. >> it sounds like you're talking about net interest income and net interest margins. is that the metric that you think will be hit by that? >> yeah, it's been hit for the last two years. so, without a doubt. >> what about rising rates on other activity? things like the ipo market and

capital markets overall. if the rates stay elevated, the two-year pulling back from 4%. the ten-year has been moving higher. i've been looking and the ten-year moving up 30 basis points. are you worried what that does to other parts of the business or generally the net interest income story that is an issue? >> there is a bigger play here. i do think that rates going up, part of that is healthy. you don't necessarily want to see the inverted yield curve forever. so treasury rates getting above 4%, you could argue, probably we stores some positive outlook if it is also pricing in more inflation. there is a huge concern that the ipo markets need to open up in order to sort of get capital flowing again. anybody who has been raising capital can tell you it has been very, very difficult to sort of find money to make investments. that's a big challenge and interest rates are big component

of that. >> absolutely. one of the things i want to talk about, yesterday is the two-year anniversary of the bull market. cramer showed up. nvidia up over 1,000. super micro and vistra. you have to go to cnbc.com to see the ones he would buy now and put money in now. i want your take on some of these stocks. would you put money in these stocks right now that have the huge run ups? what do you think of the stocks that really led sus? >> so much is the question if a.i. pans out in the long super cycle way. i have actually do think there is a super cycle to be had here, but i also think it's been priced in. whether or not you get incremental value on the marginal dollar invested today after the 1,000 rise in nvidia, that is more of a challenge. if anything, we're potentially

setting ourselves up for continued volatility with, you know, the election and the process after the election and geopolitical risk. there is a lot of risks out there to put volatility in the market. we have been rallying like nothing is happening anywhere also in the world. i don't think you can necessarily bank on that holding. we actually have been hedging with optioning all through this. >> you know, very similar to what bill gross came out with and stocks to hedge and volatility coming up with the election and other things going on. very interesting. i think it is a conversation we'll have much more here on "worldwide exchange." gina, great to see you. thank you so much. for more on what's driving the markets and the trading day head, head to cnbc pro at cnbc.com/pro. we have more to come on "worldwide exchange," including the one word investors need to know.

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welcome back to "worldwide exchange." elon musk taking the stage last night in los angeles finally

showing the world what he's now calling the cysom cybercab with gold doors and price tag below $30,000. two things it does not have, we can't show you here. a steering wheel or foot pedals. the tesla ceo is doubling down on two home ground technologies. >> the solution we have is a.i. envision. there is no expensive equipment needed. the model 3 and model y we make today will be capable of full autonomy unsupervised. that means the cost of producing the vehicle is low. >> take a look at the investor reaction following the event. tesla shares down almost 6%. it is currently the biggest laggard in the s&p 500 and nasdaq 100. right now, we will bring in our

guest ofwhat we feel of the reveal of the cybercab. eric, portfolio manager at hedge base fund. a firm that is a long-time holder of short positions in tesla. eric, good morning. good to have you here. >> good morning. >> we are showing video of the vehicle. we heard elon musk and his narrative surrounding a.i. he broke down the economics. we have seen a muted investor reaction now. i want to get your take on what you saw. are you surprised by the investor reaction? >> no, i think largely, this was very disappointing for investors. the public will cool, don't get me wrong. i think we had autonomous day five years ago and he promised 1 million vehicles on the road. years later, we are still here with a prototype.

i think people are looking for competition in where is the technology and the technology road map and not the least, how we scale this and roll it out. there was a lot of grand picture without parking lots. i think investors expected a lot more than just driverless car in the studio. >> erik, the fact you called it less cool. i think moochelon musk looking t to be cool. does the cybercab deliver on the lower cost musk was talking about? that's not a huge difference when we are talking about an automobile. also, his narrative and everything he said, does that bolster the narrative that tesla is a tech company and not an

auto company? it trades 95 times forward earnings. >> yeah, i don't think this car really solves the lower price point. first of all, it is a two-seater car. some expect a compact five-seater car in that price segment to grow the car business. i don't think that really addresses it. yeah, no. >> what about the idea that tesla is, in fact, a tech company. they brought out the car that is supposed to be autonomous. elon musk said he had a few dozen there. what he said and what you were able to see. does this bolster the idea that tesla is a tech company worthy of the valuation? >> i think it is the opposite now and why the market is down. we had the high expectations of the event in showing tech. we didn't get details of the

road map of a.i. if you get the stats in the field, disengagement once every 30 miles. once every hour or two every hour. we are far away from this being a commercial and tech ready product to bring to the market. that's what investors will question. then we are going back to now focus on q2 and q3 earnings. what happens in 2025 if you don't have a low priced mass market car to bring up revenue growth. if you look at expectations, you assume 15% revenue growth. elon is not very clear the long awaited products will not be ready in 2025. he hinted probably not in '26. that's a long time out for a company like this. >> erik, bottom line. you are a long-time holder eof shorts. do you believe the stock will continue to be under pressure?

>> we don't really comment on positioning changes. i don't think anything here changed our view in terms of this is still an automotive company and they need to address the earnings decline they have in the core business. >> all right. taking a look at tesla shares down 6%. erik, thank you. great to see you. >> thank you. chge "rlid up onwodwe exan," the 2024 republican election playbook and why the real swing vote to be union members. we'll have that story coming up right after the break.

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welcome back to "worldwide exchange." take a look at shares of gxo in the pre-market. up almost .50%. week to date up over 18%. they have been moving higher this week on the reports that the logistics company was considering a sale. i spoke to people familiar with the matter. they hired goldman sachs to review the options. the options they are reviewing are all incoming offers from outside the company and including a pe firm and gxo did not look to sell on its own. big gain yesterday up double d digits. we'll continue to follow that story right here on "worldwide exchange." turning now to the 2024 election. we are just 24 days away from election day and the race and key battleground states remains very tight. that includes pennsylvania where republicans are eyeing a key

group that have long leaned to the left. emily wilkins has joined us for that story. >> reporter: that is most evident here in the must-win state of pennsylvania where a republican running for a critical house seat is touting his own union ties. rob bresnahan is a third generation electrical kr contractor. he created union jobs. he is part of a growing movement in the gop to appeal to union worker as if some unions are giving the party a chance. >> just because i have an "r" next to my name, doesn't mean i'm not for collective bargaining. i was a health, wellness and annuity trustee and said what is best for this organization at

this time. >> reporter: both the teamsters and firefighters union have declined to endorse either presidential candidate this year. that's a blow to democrats who won the endorsement in the past. democratic congress member matt cartwright had gotten the local teamsters endorsement. he said it is the party policies that matter most at the end of the day. >> there's always room for improvement. i think they do a pretty good job right now. i think most union members understand it's the democratic party that stick up for the little guy and gal and it's the republicans that are always trying to gut union rights. >> reporter: the congressional race here is rated as a toss up and it will help determine who controls the house next year. frank. >> emily, i know you are speaking to union workers. how do they view these two candidates? >> reporter: we are right

outside union hole here in wilkes-barre, pennsylvania. we spoke with someone who is a friend of ours and he has been on our side and walked the picket line. why would we turn away from someone who has been so good to us? i did speak to other union worker w workers, who said they have nothing against cartwright. that is some of the reasons that we are seeing union workers say, if we can find a republican who is good at union issues and other things, we want to go for them. >> interesting. wilkes-barre, pennsylvania. great story, emily. thank you. time for the check on the headlines outside of the world of money and business and the latest on the aftermath of hurricane milton. we have frances rivera in new york with that and more.

frances, good morning. >> good morning, frank. let's start with the massive recovery effort across central florida in the wake of hurricane milton. the category 3 storm slamming florida wednesday night bringing 18 inches of rain and 150-mile-an-hour winds and over 100 tornado warnings. over 2.5 million homes and businesses are without power this morning. the storm's so powerful it ripped the roof off tropicana field. milton toppled a construction crane in st. petersburg sending debris in the street. rescue workers rescued a number of people. the coast guard rescuing a man clinging to a cooler there 30 miles offshore in satelli sarasota.

30 confirmed twisters touching down across the state. fema is stretched thin. it blew through half its money for the enext year in eight day. the agency is able to meet the immediate needs. hopefully that is reassurance that milton could have been so much worse. you are up to date, frank, on the latest on hurricane milton. >> frances, wishing those the best with the recovery efforts. our thoughts and prayers with them. frances rivera live in new york. thank you. coming up on "worldwide exchange," warren buffett hits a key milestone in the selling stock of bank of america. stay with us. we'll be right back.

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i think the a.i. theme is just coming into the database king. when you look at the database giant, we saw rumors that openai may be partnering with the cloud. i think oracle has more room to run despite the new all-time high. i think this is just getting warmed up and if anything, a.i. has gone up. we own it in the essential portfolio. it is nice to seezing the value

hidden gem. >> that was jeff kilburg yesterday making the case for oracle as best stock ideas for q4. malcolm ethridge isclosing out the week. that stock up almost 30% this year. welcome back to "worldwide exchange." happy friday. aim h i'm frank holland. the s&p is down fractionally. the dow would open 70 points lower now. the down side moves accelerating for the blue chip index. we're watching shares of tesla this morning after the company's big unveil of the cybercab. look right here at this chart. investors clearly not that impressed. the stock falling 5.5%. barely off the lows of earlier today. we just had a guest on a short

time ago what he saw from the presentation did not bolster the argument that tesla is a tech company opposed to an auto company: we want to look at the stocks. jim cramer highlighted this yesterday. by the way, belated two-year birthday for the bull market yesterday. the nvidia shares up 1 thouaurk 1,000 in last two years. you have to see the page where cramer would put money in today. jpmorgan and wells fargo and blackrock reporting. jpmorgan chase down fractionally. blackrock still where it was when we checked it earlier. we are also checking the bond market following yesterday's hotter than expected cpi print.

ppi this morning, the benchmark 4.09. the two-year back below 4%. that long bond is gaining in recent gadays at 4.39. we say this is a read on inflation expectation. that is the money read right now. let's get a check on the corc corporate stories with silvana henao. >> boeing filing a charge against the union representing striking west coast factory workers. according to reuters, the filing with the national labor relations board accuses union leaders of not bargaining in good faith. berkshire hathaway once again trimming its position in bank of america unloading another 13.6 million shares this week. now that brings the conglomerate stake in the bank to below 10%,

mention berkshire will no longer have to report its stock moves within days of any transaction. bank of america is still b berk berkshire's third largest holding at $31 billion. the u.s. government announcing new quality ratings for the medicare health and prescription drug plans. the ratings are a first indication of which insurers will get bonus payments in 2026. you can see humana shares are facing a big drop pre-market down .75%. this on concerns about its medicare plans, frank. >> taking a look and a mixed result from the pre-market from the stocks. thank you, silvana. now turning to investor ideas in q4. some of the guests naming the stock ideas in the opportunities

for the year. you see the picks right there. now malcolm ethridge closes out the week with capital area planning group. malcolm, great to have you back. >> good to see you, frank. >> let's get into your picks. one of them i want to talk about is rocket mortgage. ticker rkt. i'm looking right here. mortgage rates at over 6.5%. why are you bullish on this stock when we hear until the rates get closer to 5%, we will not see a lot of movement in the mortgage market? >> i know typically rate funds doesn't mean much because it pegs to the ten-year more than anything and that has been up u up .4% since september. i'm looking at rocket able to do well in a bad environment for

mortgages if you think about the last couple years when the fed funds rate was higher. they were to the competitors, home depot, and rocket was up 5% year over year. if they were able to do that well in a bad environment for mortgages, with us being in an easing cycle, we can reasonably expect that rocket will do fairly well going forward. >> in all fairness, stock is up over 21% year to date. i want to go back to the last earnings. they gave some guidance. they had q2 revenue of 3.2 and guided that could be lower for the current quarter. 1.5 billionto 1.3. are you concerned they are not seeing the growth in the business? >> i think one of the things that rocket did, too, was it got a little bit more efficient. it got defensive and efficient and that guidance is setting up to have a decent beat.

i hate to use the phrase sand bagging here to have the opportunity to out perform. we are setting that guidance a little bit lower to set expectations on the floor. >> your other pick for us is paypal. we'll show the chart in a second. why paypal? we have seen upgradies of affir. one analyst called it the new way to pay for this generations american express. why paypal? >> for one thing, investors are discounting how the ceo change could be. you teed it up 30% is the year to date performance. most of the momentum in the name hasn't come until early august. a full year after alex christ took over. we are getting a lot of refresh inside of what has become an older brand in the fintech space. i think for one thing, the momentum is going to continue as we continue to see just new

changes and updates coming. especially as far as the vinmo offering. we have not heard anything new in a while. >> rocket companies. not rocket mortgage. rocket companies and paypal. thank you for your q4 best picks. malcolm, good to see you. coming up on "worldwide exchange," new call on nvidia and one company celebrating the chip giant's competitive advantage. shares of nvidia down .25% in the pre-market. we'll have that coming up after this break. and stay on top of the market. e*trade from morgan stanley

welcome back to "worldwide exchange." time for the morning call sheet. goldman sachs hiking nvidia price target after the meeting with executives and jensen huang. bank of america is well positioned to capitalize on broadcom. another top pick call is morgan stanley on atlassian with a broader product portfolio and derisk of 2025 estimates. time for the global briefing. bang of korea cutting for the first time in four years. in a statement, the bank said domestic demand is slowing down.

it says there is room for additional cuts as it is showing signs of stabilizing and the housing market is slows down. uk returning to growth in august. gdp rising by .2%. brin the chinese finance minister is hold ageing a briefing tomor an announce a stimulus plan. china will deploy $200 billion to shore up the second biggest economy. coming up on the show, one word that every investor needs know today and a pair of big banks are set to report this morning. the key sectors set this morning. we'll be right back after this break.

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welcome back to "worldwide exchange." jpmorgan and wells fargo kickoff earnings today. they are followed by citigroup and morgan stanley next week with the small portion of revenue coming from loans, the big banks may not get a boost from rate cuts, but benefit from a pick up in deal making and credit card spending if the fed sparks more economic activity. let's bring in nancy at essex

investment management which owns jpmorgan and wells fargo. ever since september 10th, when the coo warned their net interest income guidance may be too optimistic, we have seen pressure on the banks. i want it ask do you think that is a read on all the banks or just jpmorgan? >> i think this is something we need to be concerned about this earnings season fairly broadly. investors have been optimistic about net interest margins holding firm and perhaps getting better as the yield curve st steepened. we haven't seen it yet. the third quarter numbers could be strained across the board. >> we had a hotter than expected cpi read yesterday and another read today. we talk about the reports moving the market. in your mind, could this move the guidance from the banks? we have seen bond yields rise and it may be

counterintuitively. the ten-year above 4%. >> we have seen that and part of that is reaction the ten-year had come down so hard before the well anticipated fed rate cut. now maybe looking at a slower rate of rate cuts than what was antic anticipated. we have the overhang of the unknown of the election and the deficit. we are seeing the long-term inflation expectations creeping up because of the impact of the deficit. we think that the cpi is an important factor in terms of the net interest margin because of the impact on the ten-year. more fundamentally, it is the balance with what we are seeing with somewhat better still inflation numbers, but potential weakness coming in the economy. >> so there's optimism that things like deal making will pick up and credit card spending. we got the jobs report last week. much better than expected.

a strong economy and stronger wage gains. are there certain banks that benefit more from the strength of the economy specifically at the consumer level than others? >> right. so that may be an impact on the consumer. we think the consumer is still seeing some strains because of the inflation that we've been going through and that will impact on the every day cost of the consumer is dealing with and that has shown with the resilience of the consumer as restaurants and retailers cut prices, then they come back in. that does mean maybe we want to look at some of the more consumer facing banks. perhaps bank of america or citi or opposed to the institutional facing banks. the issue here is what are we seeing with credit card balances already which are quite high.

leslie picker will have the results coming up on "squawk box." nancy, good to see you. coming up on "worldwide exchange," where investors need to park money. if you missed us, check us out on spotify or our your podcast apps. stay with us. cha wa do w ? but the feeling that, no matter what, you're taken care of. ohhh, i just earned a hotel suite! hee! you only get that here. at the sportsbook born in vegas, where they know how to treat you right. who you talking to jamie foxx? bonus bets. exclusive offers. real world rewards. betmgm. download and bet today.

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welcome back to "worldwide exchange." here is a look at the stories we're following. shares of tesla are getting slammed after the release of the robotaxi. it is the laggard in the s&p and nasdaq. we are watching shares of amd. they are higher this morning after closing down 4% after launches its answer to nvidia's blackwell chip. shares up .50%. yesterday's ceo lisa su spoke with us following the event. >> the demand for the overall a.i. landscape is really, really, very excited. we actually updated our view of the overall market. last year, when we talked at this time, we thought the

overall market size would be $400 billion in 2027. we are extending that to 2028. we expect the growth rate to continue to be very high. fitch says hurricane losses to hurricane milton will push 50 billion dollars. that will push losses toover $100 billion. we get outthe latest look o inflation with the ppi and the consumer data and ahead of the open, we get earnings from jpmorgan and wells fargo and blackrock. larry fink will have more coming up at 9:30 a.m. we will hear from several fed officials today including austan goolsbee and lorie logan and governor michelle bowman. markets are looking to finish out in the green with the nasdaq on pace for the firfth straight week.

the s&p down fractionally. the dow had the lows of the morning. it would open 80 points lower. the nasdaq a .25% lower as well. let's bring in courtney with the latest. >> thanks for having me, frank. >> we mentioned futures under pressure right now. how do you see today shaping up? >> our word of the day is rates. we have been talking about this on the show already. where interest rates are heading is going to continue to be a large story here. despite the fact that the fed has started the supersized rate cuts, the treasury yields higher despite that. i think what you need to realize is the fact that bonds speak just as loud as the fed. the fed is coming in lowering rates and the bonds are telling you a dichfferent story. keep an eye on this story. i don't think it is ending

aa any time here in the near future. because inflation is sticky here, you need to make sure you have inflation hedges in the portfolio. >> we get ppi coming up later today. we are showing the 10-year chart. 4.09. at what level do you think that becomes, you know, distressful with the equity market and bonds flat out more aattractive? >> i think what you need to consider is the yield curve is normalized which is a better thing for businesses. the fact you no longer have the inverted yield curve. the fact the longer end steepening is where you want to have those in there. think back to 2022. think of energy actually tends to do well in that environment. you are seeing commodities up over 8% in the last four weeks as you see the yields rising. additionally, you want to look at the high dividend players. i don't think this is necessarily a bad thing for the

markets. you can start to see other areas out perform. we are the idea that you will continue to see a broad rally. if inflation kicks in, some of the areas out performance make sure you have those in there. >> quickly, i want to save time for your picks. bill gross came out with stocks with the possibility of the election. he named a reit and a mutual fund. do you agree it is time to get more defensive and protect from volatility? >> it has been an unvolatile year. we tend to have 5% correction every year and 10% correction every 12 months. we had two big corrections this year. as we lead up to the election, it is not out of the realm of the possibility to see the volatility kick in. is that something i'm worried about? no, you want to take advantage of that as a buying opportunity. keep in mind here, the election tends to be a good thing for the

stock market. if the volatility kicks in, it is something to take advantage of. i would not be surprised to see it come in. >> i want to talk about your picks. one we chatted about on the phone. the pick of the small caps. they are down 1% following the stronger than expected jobs report. shouldn't that have boosted the small caps? why are they trading lower and why are you operattimistic. >> this is something everybody is optimistic on. as the fed is lowering rates on the short end of the curve with the expectation of the rate cuts after the data yesterday. because of that, those lending rates will be affected more on the short-term of the curve for your small cap companies which should benefit. >> courtney, thank you very much. that does it for "worldwide exchange." "squawk box" starts now. good morning.

futures are lower right now. five-week winning streak is on the line for the major averages and more. inflation data is on the way. and it's finally here. earnings season. coming alive. financial giants blackrock, jpmorgan and wells fargo all expected to report in the next hour. honey, get in here! you have to see this. elon musk's robotaxi party, the cybercab, making the hollywood debut. it's cool. look at. that gold wings. investors are driving the stock lower this had morning. it's friday, october 11th, 2024. "squawk box" begins right now. ♪ good morning, everybody. welcome to "squawk box" here on cnbc