it's 5:00 a.m. here at cnbc global headquarters. welcome to "worldwide exchange." here's your "five@5." the president-elect shaking up global markets as he talks tariffs on china, mexico and canada. that is putting risk here in the u.s. as the russell and s&p pull back. and the hawkish fed warning of another rate cut. shares of kohl's sliding after the c-suite shake up. and morning star thinks the best plays are. it's november 26th, 2024.

you are watching "worldwide exchange" here on cnbc. ♪ good morning. thanks so much for being with us. i'm frank holland. we have big news this morning that's having a big impact on markets around president world. president-elect trump wants additional 10% tariff on china and 20% on canada and mexico. the post from truth social. reacting to that news. the dow coming off a record close. it was in the red a short time ago. we are seeing the dow fractionally higher. the s&p is up five points. the dow would open 20 points higher. turning from the red to the green a short time ago. the nasdaq up about 24 points as well. we want to look at the russell 2000 futures after that closed at a new fresh all-time high. pulling back a bit. pulling back .50%. you see the moves since it's

election. small caps up over 7%. yesterday, hitting a fresh all-time high when we talk about the small caps. we want to look at the dollar index and canadian dollar and the peso on the post from the tariffs. look at the currency moves. the dollar index moving higher. canadian dollar moving higher and the peso up 1.25%. we will watch and see how they continue to move. we want to watch a number of sectors to benefit from the higher tariffs. we will look at industrials. potential to benefit. financials. that's more of a regulation story. we also saw transports. those hit a new 2-week high. also when we talk about fresh new highs, the ishares etf. that is also up 7%. actually 8% since the election. we are seeing the moves here since the election yesterday closing up 1%. also again hitting a fresh

all-time high. we're talking about trump trades. what else? we have to talk about bitcoin. last week, it got within a buck 50. this morning, it is continuing to pull back. it is become 1.3%. well below $100,000. still, huge gains. up 35% since the election. trading at $93,700. that is the money set up. let's get more on the reaction with the asian markets with jp ong. jp, great to see you. >> reporter: great to see you, frank. we were on air in asia when donald trump made the announcements and it did cloud sentiment here across the markets in the asian pacific. if he is imposing tariffs on china and canada and mexico. that is why we see the nikkei 225 fall today. you see the laggards because

they might be in line with future tariffs with they are tariff worthy, for lack of better term. nissan falling after they told nikkei they will continue to cut production in the united states well into 2025. more problems for that japanese carmaker. we didn't see as big of a decline. the hang seng and hong kong managed to gain a bit today. we have to remember the tariffs on china were imposed because they believe beijing is not doing enough to stop the flow of fentanyl in the u.s. fentanyl is a u.s. issue and it supported the u.s. in addressing the challenges. in south korea, watch out for the battery makers. the facilities or ev battery factories they established in the u.s. are under threat because they may rollback the ev tax credits.

again, casting more uncertainty. the biggest laggards in seoul. frank, back to you. >> jp ong, thank you. let's get more on the latest news europe with silvia amaro. good morning, frank. european investors have been reacting negatively from the announcement from president-elect trump with the tariffs on china and canada and mexico. on the one hand, they fear there could be tariffs coming for the european economies and on top of that, there could be ramifications for the european exporting companies. looking at the cac 40, it is the main bourse at this stage and lowest down .60%. some of the french companies have a lot of exposure to the

chinese chinese chinese markets. it could impact the french companies there. let me take you to the sectors where we have pressure off the back of the announcement from the president-elect. looking at the carmakers. volkswagen down 2%. similar moves for bmw and we're also seeing similar moves when you think about the drinks makers. prurs pressure in that part of the market with the investors fearing ramifications from the announcement of donald trump into some of the companies like diageo. frank. >> silvia amaro with the look at the european reaction to the announcement from president-elect trump that he wants additional tariffs on china, mexico and canada. let's get more on this announcement from doug bonaparth.

>> good morning. >> as someone who is a financial adviser, does that change thesis for clients? the idea of tariffs over the next four years, does that change anything? >> right now, no. trump is doing what he does best. create a stir to get to the negotiation table. we will wait and see what materializes and if there are any strategic shifts. this seems premature. this is his play. we know this. >> what about single stock investors? ab-inbev is down on this news. constellation is down. >> whether you have a single position impacted by tariffs or any other particular event, always thinking about risk management here. if we have a concentrated

position, look at the year or years that we've had. some insurance can go a long way here. some strategies can come into play. always making sure you don't have a single position to destroy your long term goals. >> the small caps hit an all-time high yesterday. a lot of people are talking about small caps. we were joking about how many people were talking about it and now they're finally rallying. we're not going to name names, tom lee. do do we diversify? >> this rally is welcomed for sure. take your 80/20 portfolio. you are seeing a 7% allocation or 11% to 12% for mid capmidcap. they held their own in the last earnings. now you are getting a lift from small caps and midcaps as well.

that's why you have it there and you will get a little icing on the cake in 2024. >> small caps all time yesterday. we have to see what the performance is especially after the tariff news today. one thing i want to ask you about. we continue to talk about the markets hitting new records. at the same time, we see the money and money markets continue to grow. what are your clients telling you? do they want to stay on the sideline or the ance of the money market? i would think it would be hard to keep people out? >> you still have rates relatively higher than where they were a couple of years ago under zero interest rate policy. the skrurt ecurity and comfort comes from cash is still there. however, i do still see the employment on the cash on equal basis. we love dollar cost averaging. we love hedging against the risk of putting all of the money in

the market and greeted by a volatile moment. nobody wants a 20% event. >> i want to correct you. i do want a 20% to the upside. >> yes. let's go north. >> doug, great to see you. for more on what's driving the markets and trading day ahead, head to cnbc.com/pro or insights and alysis. we have more coming up "worldwide exchange," including the one word every investor needs to know. one is suggesting another round of shakeups and kohl's with the leader moves. look at this chart. our next guest is calling the stock a top pick, a top pick despite the chart. a very busy hour when "worldwide exchange" returns. don't go anywhere.

help make trading feel effortless. and its customizable scans with social sentiment help you find and unlock opportunities in the market. e*trade from morgan stanley with powerful, easy-to-use tools, power e*trade makes complex trading easier. react to fast-moving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you won't miss an opportunity. e*trade from morgan stanley

drop everything and get some magic of your own or reverse orders so you won't miss an opportunity. during the xfinity black friday sale. xfinity internet customers, our best deals of the year are back! switch to xfinity mobile and get your choice of a free 5g phone, plus your next unlimited line free for a year. get amazing savings and connect to wifi speeds up to a gig on the go with xfinity mobile. fly don't walk to get our best deals of the year. connect to the world of wicked this holiday, in theaters now. ♪ ♪ ♪ something has changed within me ♪ ♪ something is not the same ♪ ♪ ♪ ♪ it's time to try defying gravity ♪ we would love for you to be our elphaba. we want you to be our glinda the good.

♪ ♪ welcome back to "worldwide exchange." we have a news alert. airlines are all in the red. a new report from the senate sub committee on investigations accuses carriers of using junk fees to increase revenue. the report says some of the airlines are making more from seat fees than ever before and using customer info.

executives from american airlines and delta and united and frontier. all three in the red. delta airlines down more than 1%. we have another news alert this morning. the biden administration ing steps to significantly expand coverage the anti-obesity coverage. medicare and medicaid to cover drugs for people with obesity. we are looking at the anti-obesity drugmakers across the board. sanofi down over .50%. astrazeneca down .50%. time to check the top stories and that includes fresh comments from one hawkish fed member from silvana henao. good morning. >> good morning. neel kashkari says he is open to cutting interest rates again in december. in the interview with bloomberg, kashkari says it is reasonable

to consider a 25 point cut next month. he added that the economy's resilience in the face of higher interest rates suggest neutral rate may be higher now. starbucks says that attack on one of its software vendors has disrupted how the coffee chain's baristas view and manage their schedules. they are currently working around the outage manually and the ruption has not i impacted customers. starbucks is working with the vendor, but did not reveal the name. bloomberg is reporting that qualcomm's interest in the potential bid for intel has cooled. the report says that the complexities qualcomm would face in acquiring intel has made a deal less attractive. bloomberg said qualcomm could buy pieces of intel instead of the entire company, frank.

shares are down for both intel and qualcomm. >> a story we will continue to follow. silvana, thank you very much. see you later in the show. time for the big money movers. three stock stories of this morning. zoom shares are dropping despite better than expected third quarter results and giving revenue guidance above estimates. zoom said strength from large accounts. stock up 17%. shares of kohl's are falling as the ceo is stepping down after less than two years on the job. tom kingsbury is replaced by ashley buchanan at michael's. shares of kohl's down 3%. jim semtech rallying after boost for a.i.

semtech shares are up almost 19%. coming up on "worldwide exchange," another potential big money mover today that's dell which is set to report its latest results. the key number you need to watch coming up after the break. stay with us. meets bold new thinking. to help you see untapped possibilities and relentlessly work with you to make them real. why pay more for an effective daily body lotion?

gold bond healing lotion and relentlessly work with you hydrates for half the price of the leading daily moisturizing lotion. it visibly heals and moisturizes dry skin in just 1 use. choose gold bond. there are some feelings you can get with any sportsbook. ohhh! the highs! no, no, no. the no, no, noooos - oooooooo! the oh, oh, ohhhhs! now whatcha wanna do with this? but the feeling that, no matter what, you're taken care of. ohhh, i just earned a hotel suite! hee! 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. business. it's not a nine-to-five proposition. it's all day and into the night. it's all the things that keep this world turning. it's the go-tos that keep us going. the places we cheer. trust. hang out.

and check in. they all choose the advanced network solutions and round the clock partnership from comcast business. powering more businesses than anyone. powering possibilities. welcome back. we have more news for you on intel. we told you the government is scaling back the chips act grant.

confirmation calm me this morni. the $8.5 billion grant is a bit more han $7.8 billion. that is after the $3 billion reward from the pentagon. shares are pulling back this morning. shares of target are lower after popping 4% yesterday. the stock is down 15% since the retail giant reported last week losing a quarter -- i was looking at the chart. wow. big drop there. yesterday's bounce on the new note from oppenheimer naming target with the $165 price target. it is trading $129 right now. the analyst who made the call is joining me right now. >> thank you for having me. >> you saw the chart. you saw the drop off. the stock lost a quarter of the value after earnings. what are you seeing here to name it a top pick?

is this you saying it hit rock bottom? what is the upside? >> the valuation here is attractive. target is close to drop ralation. you have a 3% dividend yield. this is a good portion of transitory. you have issues with the port strike with the higher freight costs and we have seen it in the northeast with the markets like vegas with the unseasonable weather. that backed up their inventory. we look past this quarter and we think they derisk numbers for the q4 holiday season. at some point next year, we feel discretionary categories will do better. home, an par apparel, beauty, e cetera. >> the news we are getting today with the president-elect increasing tariffs on china and canada and mexico. does that change your outlook with target? i'm sure you know a lot of the discretionary things come from china.

>> that's correct. it is still unknown what trump will do for tariffs. we heard 60% on tariffs. now 25% on mexico and canada. it is really uncertain in terms of what he does. if we see tariffs, target will be impacted like other players. they will manage it over time in raising prices and shift to other markets. i don't think target is any more of a victim than other players out there and they will manage through that. the key message is still uncertain at this point. >> you know this is a contrarian call. you may be the most bullish on the street right now. i want to talk about a story we have seen across the retail sector. the so-called stretch consumer. how does that work when it comes to target? walmart seems to hedge that stress on the consumer with the grocery business? the holiday season is expected

to be strong, but beyond that? >> i think beauty and food and beverage is half the business. we really are waiting for discretionary category to get better. our view it will happen late next year. at this point, numbers are derisk. we feel they are conservative with the q4 guidance. i have an 885 number which is conservative. you have a trough valuation and low expectexpectations. we think earnings will move higher. this is a name that trades to sharp discount to costco and walmart. next year, if they hit their numbers, we could have a multiple expansion. you have a nice dividend yield. the base case is 165. we are using a conservative multiple. this could be a 180 or $200 stock. >> we are talking a lot about target. a bullish call on target. you cover costco and walmart.

how will the tariffs impact the other retail names in your coverage area? >> for walmart, two-thirds comes from the u.s. market. i think they are okay. they may have 10% from international markets. walmart has a lot of leverage with vendors. they will be fine over time. costco, if you go back to the last tariff situation, they were able to manage that easily. costco has a limited assortment. if you see higher tariffs, they can manage around that. really no worries for costco or walmart on tariffs. typically, they are the last to raise prices. i think costco and walmart could gain share in that environment. really no concerns there. i think the reason why you see costco and walmart near all-time highs is because investors are not worried about tariffs. they think they can continue to driver the top line momentum and strong bottom line growth. we're not worried about costco

or walmart. >> i thought you were be concerned. i thought you would say the sky is falling. you seem to say things are okay for walmart and costco. a different story for target. very bullish call. great to have you on. >> thank you for having me. as we head to break, check of shares of cassava sciences. the company will stop all trials of the alzheimer's disease drug after it failed the late stage study. shares right now with the big drop yesterday. right now bouncing back just a bit up 2%. week to date, the shares are down more than 80%. if you haven't already, follow our podcast. check us out on apple, spotify and other podcast apps. much more "worldwide exchange" coming up right after this.

♪ ♪ ♪ (vo) whether your phone's broken or old, we've got you. with verizon, anyone can trade in any phone, any condition. and get iphone 16 pro with apple intelligence, on us. and, ipad and apple watch series 10, all three on us. that's up to $2,000 in value. only on verizon.

♪ ♪ ♪ something has changed within me ♪ ♪ it's time to try defying gravity ♪ ♪ ♪

if they don't stop this onslaught of criminals and drugs coming into our country, i'm going to immediately impose a 25% tariff on everything they send in to the united states of america. >> that was then candidate trump on the campaign trail earlier this month vowing to implement tariffs on mexico. the president-elect making good

on the promise. welcome back to "worldwide exchange." i'm frank holland. more on the president's plans and how high he will go with the tariffs. first, we kickoff the half hour with the check of the markets. you see movement with the dow. a short time ago, we saw the dow in the green. now it's slid back into the red. the s&p up fractionally lower. the russell 2000 closed at a record high yesterday. you see pulling back just a bit over .50%. take a look since the election. small caps up over 7%. again, small caps close at an all-time high yesterday. a lot of news about that. we'll talk to our market guest about that as well. we want to look at other parts of the market that may be impacted by that post on truth social. the dollar and canadian dollar and peso. the dollar now flat.

it was up earlier. we are seeing the canadian dollar up .75% of 1%. i want to take that back. that is the u.s. dollar gaining over the canadian dollar. gaining over the mexican peso. it's a comparison here. the dollar gain here on the canadian dollar and peso. i want to clarify that right there. i want to look at sectors that could benefit from higher tariffs. financials also closed at a record high, but that is more of a deregulation ry. industrials with a record close and transports at the 52-week high. and ishares are up since the election and they continue to move higher. big move since the election with the move on tariffs and the trump agenda being very good for u.s. and domestic growth.

when we talk about trump trade, we have to talk about bitcoin. we were talking about it being close to $100,000. it has pulled back 2% right now trading at $93,120 or so. it moves and ticks up. since the election, big move to the upside up over 34%. that is the money set up. we will get to the developing story. president-elect trump announcing plans with tariffs. megan cassella is joining us now with more on the story. megan, good morning. >> reporter: frank, good morning to you. trump vowed last night to impose tariffs on all goods coming in from canada, xico and china in the surge of undocumented immigrants and fentanyl crossing the border. one post on social media, p would impose the tariffs on first day in office.

he said it would be one of executive orders he would sign on the first day. trump said china would impose additional 10% tariff on top of other duties. frank, this is trump vowing to follow through on the threads that he made on the campaign trail. threats that have, at times, been dismissed as bluster. trump and his team have been focused for months on finding legal ways to impose tariffs broadly and quickly. the path forward for him is declare economic emergency and laying the ground work for the legal argument for why tariffs are needed and the emergency status is needed. on the other hand, this would be challenged in court and trump could back off the threat if he gets something in exchange from any of the countries. he also used some interesting language saying that he would be signing paper work for the tariffs on day one which could leave enough gray area that

nothing takes effect immediately. it is also possible, frank, he is serious when he lays out the threats against the three largest trading partners and we could see tariffs take effect in a matter of months. frank. >> megan, let me ask you, what is the fact versus the fiction with the president-elect actually doing this? we heard the president-elect say a lot of things. what's the reality? >> reporter: i think it is important to say he is following through on the threats as president-elect and he is just as serious about them as he was a candidate. we know based on reporting that this is something he has been focused on to find a way to make this happen. trade law is not written to give broad power to impose tariffs on anyone country. there is a long way to go. a lot of what trump does and we saw this in the first term.

vow to impose tariffs and sign the paper work and back off when he gets something in exchange. on the other hand, we have to take this seriously because they found a legal method to do it. we don't know they are doing it just yet. >> megan, we know you are doing a lot of research on scott bessent for the treasury secretary. i thought he was someone in favor of a gradual increase in tariffs. this seems pretty dramatic. >> reporter: pretty dramatic. i thought it was fascinating to take a look at truth social feed. we knew he wanted a treasury pick. he was celebrating the record highs. he loved to see that. at the same time, he was doing something destabilizing. he is doing both at the same time and it is the same team of rival strategy he likes. you don't know what you get from trump. maybe you get a bit of

everything. we're seeing that today. >> megan cassella, thank you very much. turning attention back to the market and continuing to up 3% to 19% and the russell 2000 up. the s&p is .50% away from the record and nasdaq off 1.5%. with the closer look at 2025 after a solid year, let's bring in dan kemp from morningstar. >> thank you, frank. great to be with you. >> i was reading your 2025 outlook. a wild card thrown into the mix last night by the president-elect. i want to does you, does the idea of the tariffs on china, mexico and canada change your outlook? we don't know if it will happen, of course. >> frank, that is a great question. what you've done is touch on the key aspect or outlook with one

of the challenges that appears this time of year. everyone becomes obsessed with making short-term predictions of what the market is going to do in the next six months or a year. what we have done at morningstar is take a step back and think about the longer term and think about things that are really going to impact investors over time. as we take that approach, then one of the dangers that we see is that investors get caught up in these narratives. so, whether it's what the president-elect is currently doing or what's happening elsewhere in the world or the challenges with geopolitics, it is easy to grab hold of the narrative. we know -- >> let's let go of the narrative. let's get to the reality. let's forget about the narratives and other distractions. what are you really seeing in 2025? in your mind, what will work next year after a really strong year at least so far this year? >> that's a key point. it has been a very strong year

this year. we have seen prices rise and valuations get richer, particularly in parts of the market and the growth market. we have seen that as being quite expensive. we look at the best investment ideas in 2025, then it is away from that part of the market which has done well this year. what we're looking at is smaller companies in the u.s. and more value oriented companies and traditional industries where we see a big discount still to fair values and as we look overseas, we still see great opportunities in europe and particularly the uk and emerging markets. it is looking beyond the narratives and focusing on long term value. >> i want to go through your report. you are bullish on the european market and the ftse 100 in fact. the ftse 100 is a laggard of the s&p. up 7%. you also like bonds in the situation.

that is interesting. a lot of people feel bonds are tricky. let's get more granular. you talk about treasuries. where are you seeing the opportunities in treasuries? what duration? >> yes, absolutely. that's a great question because bonds when you are investing in that part of the capital markets, the reason you are holding bonds becomes very important. some people will own bonds to try to generate returns. bond fund managers and they tend to be driven more to the risky end. high yields and corporate bonds. multiasset investors and we look at bonds and the role they typically play in the portfolio is to provide down side protection in the recessionary environment. if you don't have the soft landing over the hard landing, you want that in your portfolio. we think people should go further out on the yield curve

looking out five or seven years. >> you see the opportunity where people -- >> value of the curve. >> dan, we're almost out of time. in your note, you say the u.s. market is expensive. the nasdaq 31 times. the russell, all-time high at 33 times. if the u.s. market is expensive, quickly, where is the opportunity? is there a sector where you see opportunity or sub sector? where is the opportunity in the quote/unquote market? >> the opportunity is to dig deeper and look at the smaller companies and mid-sized companies away from the technology enabled large cap stocks. plenty of opportunities across the sector. that's the mantra. >> dan kemp, thank you very much. coming up on "worldwide exchange," big moves on tap for dell said to report results today. take a look at the chart.

up 30% after reporting earnings. we'll give you the key numbers to watch coming up after the break. stay with us.

welcome back to "worldwide exchange." dell reports third quarter results after the bell today. kristina partsinevelos has more on the metrics and what dell has to say about a.i. demand. >> reporter: dell faces a challenging tech landscape where server demand faces a lifeline,

but weak traditional markets like pc, personal computers threaten to undermine the revenue recovery. servers have yet to recover from the 2023. pc sales which is 50% of the dell revenue, but bank of america says the pc cycle has been pushed to 2025. storage and network is mixed. lastly, the strong u.s. dollar could hurt dell guidance. that's why they are banking on dell a.i. structure to bridge performance gaps. nvidia gpu supply to limit that upside. the q3 revenue would fall quarter over quarter because of the lack of supply of gpu chips.

the midas touch of nvidia continues with the pipeline continuing to build. that is seen as a positive read according to citi and not only for dell and super micro. frank. coming up on "worldwide exchange," the one word that every investor has to hear today and the stock pick every investor needs to know. plus, dig into the trump trade and the boom once the president-elect officially takes office. we'll be right back after this break. stay with us.

were you worried the wedding would be too much? nahhhh... (inner monologue) another destination wedding?? we just got back from her sister's in napa. who gets married in napa? my daughter. who gets married someplace more expensive? 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." we are looking at spirit makers after the additional tariffs on china, mexico and canada. ab-inbv down 1.5%. diageo is down 1%. constellation brands. maker of modello and orona. investors are watching the software sector as we get close to a second trump administration. tech media and telecom. seema mody is here with more. good morning, seema. >> good morning, fred. as the department of government

efficiency, elon musk tweeted that the computers run on are ancient and need an upgrade. that lit a fire in software stocks that gained 17% since the election. software sector on average has out performed semiconductor stocks that started the year strong, but lost momentum since the election due to the ongoing threat of tariffs. jefferys analysts believe software is insulated from trade risk and benefit from deregulation and prospect of mergers and acquisitions. asana and salesforce revealed the a.i. agents in recent weeks and other analysts point to companies that already work closely with the government like palantir and meta and ibm which say leader in the space which functions as a service provider as well. earnings in the next few weeks,

including from workday and hp will provide how ceos see customer demand post election and into 2025 and whether the ipo market could improve. that is a big uestion for wall street. coreweave is planning to go public with the $35 billion valuation. it aids in the build out of a.i. applications. that's a hopeful sign for 2025, frank. >> seema, you are mentioning companies that work with the government. palantir and meta. did musk point out other areas of the government? human resources and army and what software names may benefit from the changes? >> reporter: you are right. there are so many areas he can tackle when it comes to

software. he didn't spell out which specific names. that's hy people on wall street are looking at the previous relationships elon musk has had with silicon valley companies and which ones could be favored by the administration. i would point out palantir is one of the biggest partners with the u.s. government with data analytics. that is a company that has run up a lot since the election. it is up 56% in the month of november, frank. >> seema mody, thank you very much. coming up, we will show you the mystery chart. only up 2%. our next guest says this name is a buy. we will reveal it after the break. stay with us. (♪♪) (♪♪) everyone has goals and dreams. and everyone deserves a way to get there. wherever you're going,

getting there starts here. state street invest in your future with dia, the only etf that tracks the dow. (♪♪)

welcome back to "worldwide exchange." here's what to watch today. a busy day for earnings. best buy and dick's and kohl's. kristina partsinevelos pre-viewed dell and crowd strike. we get the latest from the fed's policy meeting. time to see how the trading day is shaping up with the dow coming off the record close. look at futures. we have seen movement in the futures market earlier today. the dow back positive. it would open about 12 points

higher. the s&p is fractionally higher. for more, let's bring in david katz. david, good morning. >> good morning. thanks. >> david, i first have to get your reaction on the post on truth social with the tariffs on china, xico and canada. >> it's worrisome. it is okay right now, but the foreign markets are selling off today. we think tariffs across the board are a lose-lose game. the u.s. market is overlooking it. we think in the next few months, it will be spooked by it. we will not chase the rally. tariffs are worrisome in terms of global trade. >> you are seeing global markets are lower. if europe trades lower, the u.s.

trades lower in sympathy. do you see that playing out today? >> the day-to-day market is erratic and depends on the sigh coming psychology of the day. however, you had a 70% rally in the last 26 months. we think the market is going to slowdown from here. we would not be jumping on this band wagon. >> i guess trees just don't grow to the sky. something has to happen. david, give us your word of the day. >> the word of the day follows that. tenuous. the market is less stable at this point. we think that psychology could change again. you want to be a little more careful than you've been. >> a bit more careful. when we are talking about small caps, is that is area to be careful? russell 2000 hit the all-time high yesterday. the market and s&p is trading 23

times and the small market is 20 times. what is your view? >> we have been bullish on small caps. they had an extraordinary rally the last month or two. this point, we're up beat, but more neutral. we have been bullish about the market the last two years. everything is doing well. at this point, we're less optimistic. we think stocks can go higher. we do think there will be rotations. small caps are good relative to mega cap, but we feel there is volatility there. >> david, i want to get to your pick. what's your pick and why? >> healthcare is the group that has been lagging. there are lots of places in healthcare. our favorite is amgen. amgen has a very good shot on goal. they are coming out with a phase two study. we think if it's good and it matches the company's body

language, the stock has a good risk/reward. buy at a reasonable price with a good yield and you have the possibility and good upside on the weight loss drug. >> you are looking at the positives, david. we want to show the chart since election day. amgen. down 7%. a lot of people -- excuse me. 4% and 8%. a lot of people thought less regulations would be good for bio-tech. any reason why amgen is trading lower? >> analysts pointed out the phase one study on the weight loss drug the bone loss density. the company did come out and say they knew about that information and they don't think it's an issue. in this market, when something is bad, the stock sells off. when something is better, it typically doesn't recover until it gets hit on the head. >> david katz, the pick is amgen. great to see you. here are a few of the

stories we are following this morning. president-elect trump announcing he will impose additional 10% tariff on china when he takes office. he would implement 25% tariffs on exports from canada and mexico. minneapolis fed president neel kashkari says the fed could cut additional 25 basis points in december. qualcomm's interest in buying intel may be cooling off. bloomberg reports that it is due to the complex nature of the potential deal. but possible qualcomm could buy parts of intel. zoom is reporting better than expected revenue guidance for the year. shares down 7%. kohl's report before the bell. the retailer says ceo tom kingsbury is replaced by ashley buchanan. and rivian is higher as the

ev maker gets additional approval for the $6 billion loan for the factory in georgia. that will do it for us on "worldwide exchange." we have seen movement on the dow. that was lower before we started the show. right now in the green. green across the board for the futures. that does it for us here on "worldwide exchange." "squawk box" starts right now. good morning. president-elect vowing to raise tariffs. actually, slapping 10% on the chinese goods and 25% on products from mexico and canada. we'll talk about the impact straight ahead. meanwhile, the biden administration announcing $6 billion in loans to rivian and finalizing $8 billion in chips act funds for intel. walmart is the latest company to rollback the dei efforts as it faced pressure from the conservative activist.

it's tuesday, november 26th now. thanksgiving is very late this year. 2024. "squawk box" begins -- late as it can be -- "squawk box" begins right now. ♪ it is weak. >> still arguing about how late it is. it is a week less, i guess five days less. >> i guess it could be the 31st of november. >> there's no 31st of november. >> you could have. this is it, the latest it goes. >> couldn't it be 30? >> 30, 30 days have november. >> it is the latest week. >> that's what we decided on. >> it is a real tight scrunch, and getting ready, i'm getting ready for thanksgiving right now and getting ready for christmas at the same time. it is stressful. >> you do the whole deal? >> i have some help. >> you do? >> yeah. >> the butter ball, is it a