access to market experts to help you identify opportunities in any market. >> unrivaled access essential tools. >> that's cnbc pro everything you need all in one place from a source you trust. >> go pro with a flash sale offer for a limited time at cnbc.com. slash pro flash. terms and restrictions apply. it is 5 a.m. here at cnbc global headquarters. >> welcome to worldwide exchange. >> here is your five at five capex concerns. they hit wall street as. investors weigh the rising cost. >> of. the ai. >> push by big tech amazon coming up after the bell. that is. >> the next test. >> treasury secretary. >> scott besson. >> says he and president. >> trump are focused on a different. >> path than the. >> fed to move interest rates lower. >> chip cross a. >> trio of semiconductor stocks. they are sinking ahead of the open. plus ford ceo with some. >> very strong. >> words for the white house. >> when it comes to its. >> north american trade war. shares are lower this morning, and later sportsbooks are hoping for a record breaking. >> big game and.

>> a possible recovery from. >> a season. where bettors they won. >> more than. >> they ever had before. >> it's thursday, february 6th, 2025. you're watching worldwide. >> exchange right here. >> on cnbc. >> good morning. >> thanks so. much for. >> being here with us. >> i am frank collins. >> get you ready for the. >> day ahead. >> we begin with the markets. >> major indices and the russell all. >> of them coming off. >> a. >> two. >> day win streak. >> taking a look at futures. >> right now you can see we're in the green across the board. all three indices. >> up just about. >> a quarter of a percent give or take. want to take a quick look. >> at the s&p. premarket leaders this morning. >> taking a look. >> you see right here right at the top. >> of this. >> news. >> corp supermicro. >> tapestry western digital. >> and broadcom. >> see a lot of chip names here on the upside. >> rounding out the. >> top five we. >> got to look at the laggards as well. >> taking a. >> look at the bottom. >> five of the s&p in the premarket right now you see

skyworks solution. >> right here at the. >> very bottom. >> off of earnings. those shares down over 29%. we're seeing. >> molina healthcare. >> qualcomm ford. >> again another earnings mover. we may talk about a bit more about that. >> in the show. >> and corteva rounding. out the. >> bottom five. >> we also. >> continue to follow those. >> etfs tied. >> to china canada and mexico the three. >> countries involved. we'll call. >> the tariff. >> discussions all. >> three outperforming the s&p. week to date. take a look this morning. >> in the excuse me in the. >> green this morning. >> the china. >> etf up about 1.5%. >> this other. one also. >> up about 1.5%. >> the mexico. >> etf not moving. >> at all. but the. chinese etfs. >> all three of them that we're showing right here all moving higher. also take a look at bond. yields this morning. >> they're actually moving. >> lower partly on news from the treasury will maintain the current level of bond issuance for the next several quarters. the benchmark actually moving. about 15 basis points lower since inauguration. >> day right. >> now coming in. >> at 4.44. >> the yield there. >> and. >> we want to. >> look at the. >> dollar, a different story when it comes to the dollar actually on a two. >> day losing streak. but it's still being. >> cited as. >> a headwind by many tech companies. you can. see here since. >> the president was elected.

>> the dollar. >> up almost. >> 4.5% pulling. >> back again. again the. >> dollar on a. >> two day losing streak. >> but again tech. >> companies saying. >> it's become a headwind. >> we're going. >> to. >> talk more. >> about that just a bit later in the show. >> also looking at. >> gold it's hit another. >> all time. >> high right now. >> taking a look at. >> gold you can see. >> gold continues to move higher. >> year to. >> date up. >> about 9%. >> bitcoin up about five. >> almost a half. >> percent year to date. >> but you can see. bitcoin pulling. >> back a bit. >> the trade war one factor. investors taking a bit. >> less risk. again the dollar a safe. >> haven moving. >> even higher. >> and we want. >> to look at oil. >> moving higher on. >> reports of a saudi price increase in what's. >> become an actually tightening market. >> taking a look at oil prices right now wti the us benchmark. >> up over. >> a half a percent. brant crude the international benchmark up just about a half a percent. natural gas basically flat this morning. we've seen a lot. of fluctuations when it comes to natural gas. >> okay. >> that is. >> your setup. it's time. now for your. >> big money movers. >> and today it is. >> all about chips. >> we're going to start off with. >> a stock that we just told you about. >> apple supplier skyworks. >> solution the laggard. >> in the s&p this morning.

>> on track to lose a. >> quarter of. >> its value at the open. after forecasting sales decline. >> and what's. >> become or what has. >> been previously. >> a highly lucrative mobile segment. current quarter earnings outlook also. >> falling a bit short of estimates. >> management on the call highlighting. >> increasing competition to. >> get hardware. >> into apple iphones. >> apple makes up more than 70%. >> of. this company's. >> total revenue. we just showed you. >> the move earlier. >> skyworks solutions down. >> almost 30% right now. shares of arm holdings also sharply lower. >> despite a. >> q3 top and bottom line beat current quarter revenue and earnings forecast. however, they came in in. >> line with. >> analyst estimates. >> arm shares are already up. >> about 40%. >> this year, but right now shares are down about 3.5%. >> we're going to. >> hear much. >> more from ceo renee. >> hoss on squawk on the street coming. >> up later this morning. >> and shares of qualcomm, they're. >> under some pressure despite. >> an all around positive earnings report and current quarter forecast. ceo cristiano amon speaking with our john ford. >> also pushing back. >> on fears around deep tech and capex concerns. >> he actually says it's a tailwind. >> for his business. >> within days of the deep. >> sea announcement, people were showing it running on the

snapdragon phones, showing off. >> snapdragon pcs. >> as a matter of fact. microsoft announced. >> that deep. >> run is running on. copilot plus pc, starting. >> with with snapdragon. >> we're also seeing. >> a busy. >> morning. >> shaping up. >> over in europe. >> our julianna tatelbaum. >> is in london. >> with a. >> look at the. >> early action. julianna. >> always good to see you. >> that's right. frank. good morning. great to see you. it's been a busy morning on the earnings front here in europe. overall, the european market is trading higher. this morning. you got the ftse 100 in the uk hitting a fresh record high. in fact a lot of demand for the basic resources names here in the uk. astrazeneca also a strong performer providing some support for that index. a big day on the monetary policy front, with the bank of england decision coming out in a few hours. so a lot to play for. let me dive in for you to a few of the big movers this morning. we've got soc gen in the banking space delivering full year net income, up 69% to ■k74.2 billio. annual revenue growth exceeded the bank's target. that stock right at the top of the stoxx

600. maersk another stock on the move. the company posted a beat on the top and bottom line in the fourth quarter, revenue surging to $14.6 billion. and finally, on the downside, caring in the luxury space shares under pressure today after flagship brand gucci ended its collaboration with designer sabato sano, just over two years after he was appointed creative director. the luxury giant is due to report results on tuesday, so expect to hear a lot more on this story. frank. >> all right. >> giuliana, thank you. >> very much. our giuliana tatelbaum live. >> from our london newsroom. >> all right, turn it back to the u.s. >> markets us. >> bond yields. >> they're hovering near their lowest level in more. >> than a month. as investors. >> they remain. >> uncertain about the outlook. >> for the fed. >> and for rates. treasury secretary. >> scott besson says. >> he. >> and president trump. >> are more focused on reducing. >> borrowing costs by addressing the yield on the ten year, and not the short term rates that are more influenced. >> by fed decisions. >> besson adding while. >> the. >> president wants. >> to lower rates, he will not. >> ask the fed to cut. >> those comments coming. >> just before. >> fed vice chair philip jefferson said he's in no rush

to push for a move until the fed gets a better sense of the effects. >> of trump policies on tariffs. >> immigration, deregulation and taxes. joining me now is simon shaw, chief global strategist at principal asset management sima. good morning. good to see you. >> good morning. >> all right. so sima, we saw investors. they didn't seem to pay a lot of attention to the president's talk about tariffs. big shock to the market. now we see the president and. >> the treasury. >> secretary talking about the ten year and trying to move those rates a bit lower. should investors be thinking about that and positioning around that. >> push by the president and the treasury secretary? >> i'm thinking about. >> rate sensitive. sectors like financials. >> and small caps. do you need to make some moves in. >> those areas based. >> on these comments? >> so i think investors do need to do need to of course, listen to what is being said by. >> the. administration to understand. >> some of their thinking and certainly what a lot of what was said. >> about. >> you. >> know. >> maybe, hopefully if deregulation and reducing the deficit would push down bond. >> yields, that would be a positive. >> of course, saying that and then offsetting. >> that with tariffs. >> immigration. >> which are two policies.

>> which are typically inflationary, is probably a different question. so i think it makes sense. but the market is going to move in response to actual policy actions. if we do start to see those tariffs actually coming through, we should expect inflation, at least in the near term, to start rising. and there would inevitably be some kind of impact on bond yields. >> i want to get back to those trade policies tariffs. they do seem to be kind. >> of shaking. >> the confidence. >> of business leaders to make decisions. >> a lot of. >> uncertainty about what's to. >> come when. >> it comes. >> to big tech. i also want. >> to ask you are these tariffs. >> and some. >> of these other just actions that are creating some volatility. do you think it's shaking. investor confidence in an aggressive capex spending. >> i mean we saw alphabet. >> hit for that. we have. >> amazon coming up after the bell. do you believe when. >> it comes to. >> tech overall are investors becoming more skeptical about those plans. >> well i think with regards to capex, firstly, you know, one of the things that we did learn from trump, 1.0 was just the threat of tariffs. even then, when they were actually significantly smaller than what we're potentially facing today. there wasn't an immediate knock on impact to global capex plans.

that kind of uncertainty really does weigh on. business confidence. and it does stop businesses from moving forward with some of the projects that they may have been planning. so that's worth keeping in mind. specifically for technology, it is being impacted by a number of different factors. you know, you just. >> have to. >> think about deep sea. last week, tariffs with. which technology would likely fall into some of those crosshairs. so i think there are question marks for investors. but i think overall the long term outlook for technology is still quite positive. >> from. >> our perspective. >> it's just that right now. >> when you. do have solid growth like we have today, and earnings growth is looking fairly positive, there are opportunities in other sectors which are probably not as stretched in terms of valuations. and so there are opportunities outside of technology as well. >> all right i want to focus again on the us. >> you said. >> the labor market is in what you call an uneasy equilibrium. what exactly does that mean. >> and how could this. >> jobs report. >> coming up this week? >> how could that. >> impact the. >> markets in your mind? >> yeah. >> so what we've seen in the us is that there's not really much firing. >> you know, we've. >> seen a very limited number of

job cuts being announced. and you can see that from jobless claims staying very low. but at the same time we're not really seeing many companies increase their hiring. so it's this uneasy equilibrium where the labor market is essentially frozen. not many hirings but also not many firings. that is okay for now, but that equilibrium doesn't typically last for too long. so if you were to see labor demand start to tail off at any point, that could quickly spiral into a slightly more negative scenario. so for the payroll report tomorrow, what we're expecting to see is another month of solid payrolls. but as we start to go through the rest of the year, if you were to see payroll numbers start to drop off, that would suggest that that uneasy equilibrium is now shifting into something more negative easily, though, you know, you could see that if some of the policies start to work out better, deregulation coming through, you could actually see the labor market reheating. and unfortunately, the offset of that could be higher inflation. >> all right simon shaw, great to see you. thank you very much. >> thank you. >> turning now. >> to market. >> flash on shares of honeywell. you can take a look here. shares are popping the wall street journal reporting honeywell is

preparing. >> to split into. >> three independent companies, including separating its aerospace division. >> from its. >> automation business and move ahead with plans to spin off its advanced materials arm. you can see shares are up. >> over 5.5%. >> this move. >> has been widely. >> expected, but. >> again, shares moving higher on the news. >> all right. we do have. >> a. lot more to. >> come here on worldwide. >> exchange, including. >> why. >> one money. >> manager is. >> betting big. >> on an underperforming transport stock. >> and they say you should too. but first. >> a look at. >> one cyber. >> stock beating. >> the market. >> year to date. >> and what's in store for that sector. a cnbc exclusive. >> with tenable. plus alphabet scraps what is now becoming a controversial hiring. >> practice and. >> falling in line. >> with the rest of big tech. >> and then. >> later, a. >> big report on. >> deck. >> with amazon. >> why investors? >> they may. >> want. >> to. look to google and. microsoft for some clues. >> a very busy. >> hour still ahead. >> in worldwide exchange. >> stay with us.

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it's back. but only for a limited time. high five. five years? -nope. comcast business 5-year price lock guarantee. powering five years of savings. powering possibilities. comcast business. >> welcome back to worldwide exchange. we are checking shares of tenable. you see they're up just about 2% right now off of earnings. the maker of cybersecurity software reporting better than expected q4 results, with sales up more than 10% on solid demand for its secure cloud products. but revenue guidance for the current quarter and for the year, it fell short of analysts estimates. joining us now to talk more about the business and an exclusive interview with steve vance, tenable co-ceo and cfo. steve, good morning. thanks for joining us. >> thanks, frank. thanks for having me. >> all right. so stocks moving higher off of earnings i want to ask you about that guidance. revenue guidance was soft but the eps guidance was better than estimates for both the current quarter and for the full year. what is that saying about the

current environment for cybersecurity? >> well, overall i would say the demand environment is very healthy for cyber. i think it's fair to say we have a heightened threat environment. malicious activity is on the rise. we've all seen the headlines about salt typhoon and the attacks on u.s. telcos and even more recently, attacks on the treasury department. and the fact is, we've become a very digital society. there's no turning back. there's been a proliferation of connected systems, assets, devices and even data. so all of that has expanded the attack surface for customers. and it's made organizations difficult. and managing and assessing their cyber risk. overall, the results for the quarter we were pleased with, we delivered upside in revenue, earnings and cash flow. we're doing a good job balancing growth with profitability. demand was strong. we added over 400 new enterprise platform customers. we had one of our best quarters for large deals, net new six figure customers. and we're seeing outsized demand in cloud. and certainly our exposure management solution. >> all right, so steve, speaking

of deals, you actually made an acquisition in the exposure management space. what do you see that doing for your business in the near term and the long term? jefferies out with a note praising the acquisition, but saying it's going to take a number of quarters for it to really benefit the company. explain to us exactly what is exposure management and what your near term outlook and your long term outlook. >> sure. well, we're really excited about what vulcan will add to tenable. first, it's important to note that cyber is a market that historically has been best of breed, meaning customers were quick, quick to deploy solutions and technologies that protect a very specific area of the attack surface. now, the problem that creates is that most companies have 80, 100, even 200 plus different security vendors in their supply chain. so companies over time have developed a very siloed view about exposure and their risk within their enterprise. and they're sitting on mountains of data. vulcan helps solve this problem because it ingests data from hundreds of different security providers. and when combined with our own

exposure data, it will give customers a single unified view of risk. and in short, it will help customers to develop quicker insights and help customers identify a likely path of exploit so they can address their most urgent vulnerabilities sooner. >> so will this be accretive to earnings in the near term or to revenue? i mean, how do you see it when you look at your guidance, you didn't factor in any impact from this acquisition? >> well, we're we expect to close the acquisition certainly over the ensuing days here. the guidance that we gave last night was tenable on a standalone basis. overall, we're pleased with the results for the quarter, and we think we gave a good a guide on the top line that was largely in line with the results. the cash flow was certainly better. there is some cautionary comments we made about federal spending. fed is a massive opportunity for us. it represents about 15% of our total sales, but in the short term, there's a little less visibility there because of the new administration, the overhang of continuing resolution. and we

probably will see another cr extend into april. and that means that we may not get another federal discretionary spending budget until maybe sometime in may. so outlook we're we're very excited about our outlook and certainly the results of the quarter. but certainly some cautionary comment with regard to funding. >> let me ask you you're mentioning the current administration. so you get about 15% of your revenues from the government when it comes to this new administration, whether it's the department of government efficiency or the trade war, how does that impact your business? do you expect to see your business with the government reduced because of doge and also the trade war? does that potentially lead to a spike of cyber attacks and cyber threats? >> i think there will always be a demand for cyber solutions, and the administration is certainly committed to strengthening our cyber defenses. i think short term there's just a little less visibility. there's a number of appointees that need to be made from a cyber perspective in terms of cisa and other agencies. and so while that's happening, i think spending priorities will certainly be in flux. we're very bullish about public sector and us federal.

you know, i think with regard to tariffs, we're monitoring the situation very closely. should there be a rippling effect into software and cyber in particular. but the tariffs that have been announced to date are largely on physical goods, natural gas and other sources of energy. but overall, we see good durable growth in cyber and demand for exposure solutions. >> all right steve vince, great to have you here. tenable shares up just about 2% off of earnings. thank you again. >> thank you for having me. >> all right. still on deck here in worldwide exchange after what they call one of the winningest seasons for bettors ever, ever. sportsbooks are hoping for a super bowl bounce back this sunday. our contessa brewer. she's live in the big easy with the preview. contessa. good morning. >> good morning frank. yeah. gamblers are ready to let the good times roll. but sportsbooks are plugging in those parlays and player prop promotions. their profit depends not just on whether the favorites win at the

game, but also how much competition there is for gamblers dollars. quick break here, then live from new orleans right here on worldwide exchange. >> my name is tim grover. i'm a performance coach and a motivational speaker. i am obsessed with staying liberty products. i spend a lot of time products. i spend a lot of time taking care of myself, and at ameriprise financial, we know our clients are so much more than clients. they're go-getters and game-changers, legacy-leavers and visionaries, healers and confidants. the goals that matter most to you matter most to us. helping you achieve them is what we do best. with personal financial advice from an advisor you can trust, and goal-based investing and solutions. it's no wonder we have a 4.9 out of 5 client satisfaction rating. ameriprise financial. advice worth talking about. ooh. with the most fuel ratings and complete vehicle history from car gurus, that's how.

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ehh... hmm. oh, that's very, uh... - right? - mmm... this store doesn't have agentforce, so an ai agent didn't tip off the stylist as to what i might actually wear. - yes. - oh. that's a commitment. [glass knocked] hey bud! whaddaya think? you know, people can see you out here. ha ha ha ha, yeah, yeah, right, right, ha ha. love you, too. agentforce helps retailers prevent fashion fails. it's what ai was meant to be. ♪♪ eats and shelling out millions to get 30s of prime time exposure during the super bowl. the wall street journal reports that the maker of chatgpt is expected to air its first tv commercial during the big game on sunday. it's the company's biggest advertising push so far. google, microsoft and anthropic promoted their ai products and ads during last year's game. all right. it has been a bit of a

rough ride for shares of flutter since they reported last month that customers have been riding an unprecedented winning streak. but with super bowl sunday just around the corner, draftkings and the rest of the industry, they're really hoping for a turnaround. our contessa brewer joins us now live from new orleans. looks like you're having a good time down there, contessa. good morning. >> i very well done there, frank. i've been hearing a lot of it, and i think you just nailed it. you know, super bowl really is a super opportunity for the nation's sportsbooks with lots of eyeballs and enthusiasm around the game, even from casual or non-sports fans. the whole football season has been a boost, though, geocomply tells us there's been a 20% jump in the number of betting accounts this season, and the industry expects the super bowl to set records once again for the amount wagered. $1.39 billion. that only counts bets in legal licensed sportsbooks. last year, the american gaming association estimated all gambling, including illegal and offshore, to be more than $23

billion. i mean, that really illustrates here the juggernaut that is unlicensed play. this year's sweepstakes based gambling has exploded. you've got cash and crypto.com offering trades on the game through the predictions markets. robinhood just this week yanked similar offers off its site. i asked the nfl about gambling through these commodities markets. >> we need to make sure that integrity is first. and if law enforcement agencies or other agencies don't have those sorts of structures in place to ensure that that integrity can be kept first and foremost, and it can be regulated in a way that is sensible, we're going to have issues with it. >> the gambling industry most certainly takes issue with it. after all, companies like fanduel and draftkings, caesars and bet mgm have spent billions of dollars lobbying on legalization, on licensing and customer acquisition, and states here may lose a lot of tax revenue. we'll have to see how that plays into the whole battle. the sportsbooks, meantime, are focused on the here and the now. customers won

so much during the regular season. the sportsbook took big hits to the bottom line, and the bettors are piling into these parlays and the prop bets ahead of sunday's game. they're very popular, and if the favorites win, the sportsbooks lose. as it stands now, the chiefs are one and a half point favorites and do not miss tomorrow when i'll talk to some of the biggest names in the industry, starting in squawk box tomorrow, the ceos of the biggest sportsbooks across the nation. frank. >> so, contessa, i don't know if you know this. i'm a big eagles fan. huge eagles fan. i'm sure you're seeing a lot of people with green shirts running around there. so what you're saying is if the eagles who are 1.1 and a half point underdogs, if they win this, that would be a shock. would that potentially lead to more losses for these sports betting companies? >> i mean, i think the thing is that the spread is so narrow between these two teams, and the hopes pinned on them are so high that probably super bowl profitability is not going to

swing too far one way or the other, unless multiple favorites play off pay off in the parlays. remember when players are parlaying, they have not as great a chance of winning, but the jackpots are bigger, which is one reason that makes them so popular with the players. because, you know, it's like the lottery when you've got $1 billion jackpot, it's a lot more fun to play as though we wouldn't want a $300 million payoff, but i digress at this point. listen, if you love the eagles, you should bet on your team and have fun watching them. >> i mean, actually, i don't gamble. i think gambling is bad luck. however, let me give a little tip. you know, for me, if you take the over my forecast for the game, my prediction. eagles 77, chiefs two. that's my prediction. contessa brewer in the tape. save the tape. enjoy the game. looking forward to those interviews coming up on squawk box tomorrow. have fun. have a great time. contessa brewer, live from new orleans. all right. as we head to break, we're watching shares of meta. our cnbc data team flagging this

stock's move higher for a record 13 trading days in a row. and it's sitting right now at an all time high. you can see shares are up about a half a percent right now in the premarket. the stock also boasts the second lowest forward price to earnings ratio of any other mag seven name. fast money contributor carter wirth last night said the stock is in breakout mood mode, and it has even more room to run. we're back right after run. we're back right after this. i love that i can order official state lottery tickets anytime, anywhere with jackpocket. heck yeah i can play the lottery wherever i want. with jackpocket you get notifications for all the biggest lottery drawings so you never miss out and you can see your ticket on the app. plus, with new official state scratch games available on the app, more of your favorite games are right at your fingertips. not to mention jackpocket users have already been paid out over

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>> it is a really unusually large, maybe once in a lifetime type of opportunity, and i think our customers, the business and our shareholders will feel good about this long term that we're aggressively pursuing it. >> that was amazon ceo andy jassy on the earnings call last quarter, justifying his company's aggressive spending plans around aws and gen ai spending on that expected to surge past $75 billion in the year ahead. when we're talking about capex. welcome back to worldwide exchange i'm frank colin. coming up. we're going to dig into big tech's spending surge and the possible winners and the losers of this ai arms race. but first a check on us stock futures with the major indices. and the russell coming off a two day win streak. taking a look see the major indices up across the board. all three of them up about a quarter of a percent. just a little bit more here for the dow looks like it would open up about 150 points higher right now. we'll take a look at the nasdaq 100 leaders

right now taking a look at those. you see honeywell right here at the top of the list. we just told you about a wall street journal report. the company plans to spin off its different business units astrazeneca. those shares up about 3% following earnings. padini holdings, microstrategy and applovin rounding out the top five. look at the other side of the coin, the laggards this morning taking a look at those. you'll see some earnings movers there. qualcomm shares down about 5% off of earnings. arm holdings also reporting earnings. those shares down more than 3.5%. o'reilly tesla and cognizant rounding out the bottom five of the nasdaq 100. we also continue to follow etfs tied to china, canada and mexico, the three countries involved, what we'll call tariff discussions, all three outperforming the s&p this week to date. taking a look this morning we are seeing chinese etfs or etfs tied to chinese stocks i should say moving higher. all three of these right here moving up a half a percent 1.5% or more. we also look at the treasury market bond yields actually moving a bit lower. partly on news from treasury will maintain the current level of bond issuance, at least for the next several quarters. the benchmark the ten year at 4.43, actually moving about 15 basis

points lower since the inauguration. and we've got to look at the dollar on a two day losing streak, but still being cited as a headwind by many tech companies. the dollar right now, you can see moving higher right now up about almost a half a percent, or just over a third of a percent since the president was elected. the dollar up about 4.5%. a very aggressive upside move for a currency. and gold also moving higher, hitting another all time high right now. gold for the year up over 9%. bitcoin up about 5.5% for the year. but you see right here as we see in the trade war start more investors moving into gold. a lot of investors getting a little bit nervous about digital and cryptocurrencies right now. bitcoin moving a bit lower. and we got to look at oil. oil also moving higher on reports of a saudi price increase was becoming an increasingly tightening market. oil moving higher right now higher than it was just about a half an hour ago when we checked wti, the us benchmark up just about 1%. brant crude up just over three quarters of 1%. natural gas moving into the positive up about a quarter of a percent as well. seen a lot of big moves when it comes to natural gas.

okay. that is your setup. now we want to turn back to tech. and one stock that investors will be watching today that's amazon. you can see it's up over a half a percent in the premarket. reports after the close today and following alphabet. and microsoft's cloud and capex stumbles earlier this week, the pressure is really on. here's cnbc's own kate rooney with more. >> hi frank. so amazon does report after the bell today. the number one metric investors are going to be watching is that aws cloud growth number, especially after google or alphabet. and microsoft did disappoint in that area that, as you saw this week, dragged alphabet stock down as much as 8%. so it is a bit of a fear factor right now for amazon investors. amazon is largely known by consumers for its e-commerce dominance. but you think about cloud and aws. that is really the high growth engine side of amazon and a big part of the bull case. so it's been a leader in that space. the number to beat for the quarter is 19% growth. that's the street consensus. but it's basically flat sequentially or from the prior quarter. the next line

item folks are going to be watching is spending capital expenditures or capex, as it's also known. amazon is expected to increase spending by around 15%. that's not as big of a jump as we saw with microsoft and google and meta, but amazon's participation in this spending spree is going to be key to the ai bull case. it's also key to nvidia's success, so any commentary on spending would suggest that amazon knows something that the rest of that group does not. so it really could affect an entire sector in tech there and then watch north american margins. so this is that e-commerce side of the business. investors want to see that keeping up, expanding it has been over the last few quarters. that is going to be the expectation. but watch for commentary, especially around tariffs and what that's going to mean for retail as imports, at least from china at this point, are set to get more expensive. how are they going to absorb that? what kind of leverage do they have to pull. and then finally advertising. this is another growth area for amazon that has been adding to the bull

case. frank. >> all right. let me give our thanks to kate rooney for that report. let's keep the conversation going around big tech and its ai spending spree with global etfs director of research tejas desai. and also with me is philip strebel, chief market strategist at blue line futures. gentlemen good morning. great to have you both here. >> good morning frank. >> let me start with you. we've seen, you know, alphabet get hit for its capex spending. but they also said the problem was they just didn't have enough capacity. that's why they missed on cloud. how do you see capex spending when it comes to building up ai infrastructure going forward? you know, especially after we saw alphabet actually get dinged for that, right? >> i think the market is being a little shortsighted here in treating magnificent seven a little unfairly based off of these results. but the reality is that we have a massive generational trend that is unfolding in front of us, and it is going to unfold on a prolonged timeline. i think the risk of not spending is higher. and just like you said, you hear from alphabet and many of the

other ceos as well, that the demand for ai services is incredibly strong. so you're seeing these businesses clearly have these existing franchises that can absorb a lot of this demand, and that is closing the roi loop. but beyond that, we think that there is plenty of healthy demand from the broader enterprise that hasn't even come out there to, to really try out these ai services yet. right? so really a robust story here. and i think investors should continue to get exposure to the ai trade. but you may want to start thinking about moving beyond stocks like nvidia again to position towards the influencing story and maybe even look at software. >> so i just want to be clear. are you saying that the chip trade it's cooling off right now and you should move into some other areas. or is there still opportunities in that chip trade with the continued capex spending? >> i think, frank, there is plenty of opportunity with the chip trade in 2025, but you have to take the backdrop into consideration. i think we've had this trade work incredibly well,

specifically with stocks like nvidia over the past 20, 24 months. i think it is a good time for investors to step back and say where maybe the needle where is the needle shifting from here on out and how do we position for that? and i think alongside companies like nvidia, you will see demand for ai inference infrastructure emerge, which is companies like broadco, for example, that provide networking, custom silicon. there's many others within the memory storage value chain. but even further out, i think it could be a good idea, again, to move up the stack and think about software focused infrastructure, think about cloud applications that will ultimately, again, deliver a lot of the value associated with the ai trade. >> all right, phil, great to have you here as well. investors and companies not only talking about capex, they're also talking about currency impacts. apple and microsoft citing the stronger dollar as a headwind. where do you see the dollar going from here? we got just a few days ago pretty close to parity with the euro. where's the next moves for the dollar from based on what you're seeing you. >> we're seeing a big snapback

in the dollar overnight. i mean key commodities like food costs, oil and materials. we're seeing oil up about 1%. they really impact and drive inflation, which drives growth, monetary policy. and finally, the currencies, you know, the strong us currency, it makes it more expensive for these multinational companies to convert those foreign profits into dollars while hurting the competitiveness of exported products. so the rule of thumb, frank, you should know that every 10% year over year rise in the dollar shaves about 3% off the s&p earnings. so, you know, information technology, materials, communication services, most of those have currency risk with 40% of their revenue coming from overseas and outside the us. so caterpillar nvidia micron amazon you know half of their sales come from overseas. and those are four names that we own in our wealth management side. >> you know phil and i you and i actually spoke i think a couple of months ago just about the stronger dollar and what it could mean for earnings. we have actually seen that play out. another area we're seeing the dollar gain is against the yen.

we talked a lot about that yen carry trade. not that long ago when you and i spoke, you said a lot of times that yen carry trades used to buy the nasdaq 100 and other tech stocks. if we continue to see the dollar gain against the yen, how does that impact the tech trade? >> it definitely impacts it because of the fact you might see some unwinding of it. i mean, historically, what people will do is they'll take the weaker yen, they'll borrow against it here, convert that to dollars and they'll go out and buy tech stocks. so we'll see how this plays out. i think a lot of those types of traders that play that carry trade are on the sidelines right now, waiting to see what president donald trump's impact on the tariffs with results with, you know, with asia, and see if that will play any kind of role on it going forward. he's taking a softer stance against china at the moment here, but we could see if that broadens out if he doesn't get what he wants. >> we got to talk a little bit about deep sea. can that impact going forward. so you mentioned you might want to move higher up the stack. what about data center plays and other things like that. has that story and that narrative has that changed considerably. what also about energy. we saw energy under a

lot of pressure following the deep sea news. has that part of the narrative changed as well? >> i think the deep six news is a net positive for the ai infrastructure story. it clearly, i think, drives an explosion in use cases because now you can experiment at the algorithmic layer, you can experiment at the application layer. and at the end of the day, i think it really takes demand for formalized ai infrastructure for data centers significantly up and really opens the market for mass market adoption. so, you know, i think it is it is an interesting time here. again, if you take a step back, the billions of dollars that hyperscalers have committed to ai are yet to be spent. and naturally, i think the chip ecosystem, as well as the data center ecosystem benefits from that. and broader adoption is also likely to, i think, move the needle away from data centers towards things like ai devices. right. and we've just had a phenomenal quarter from companies like qualcomm, for example, that are showing significant traction in that market as well. and i would encourage investors to focus on that too. >> all right, staci, phil streible, great to see you both.

thank you very much. >> thank you, frank. >> coming up here on worldwide exchange, trump's china trade war appears to be forcing one major chinese e-commerce player just to look a little closer at its u.s. customers. we have the full story coming up right after this. stay with us. >> meet venu on the nyse american symbol venu disrupting a multibillion dollar live music industry. venu owns and operates upscale music venues, outdoor amphitheaters with seven revenue sources, $166 million in assets, luxury suite sales of $77 million in 2024, $200 million expected in 2025. 56% year over year growth. venu on the nyse american venue. >> high point university, the premier life skills university, is ranked the number one best run college in america by the princeton review. employers value hfpa's real world preparation. students love

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and executive orders by president trump. in a company memo, google's chief people officer says in the future, we will no longer have aspirational goals when it comes to diversity, equity and inclusion. google is the latest big company to drop diversity targets following similar moves by mcdonald's, meta, target and walmart. microstrategy is no longer micro. the software company and largest corporate holder of bitcoin, has rebranded as just strategy and unveiled a new logo with a stylized b strategy reporting a bigger than expected fourth quarter net loss. but the company is followed by investors more for its crypto holdings and not its business. the company says it spent more than $20 billion to buy almost 219,000 bitcoins in the quarter, and chinese online retailer tamu is steering users to items shipped from u.s. warehouses. following president

trump's decision this week to revoke a popular trade provision. the de minimis exception allows goods worth less than $800 to be sent to the us duty free. it's helped to fuel teemu and rivals in explosive growth and maintain their low prices. teemu hasn't responded to a request by cnbc for comment. frank. >> you know, i've heard a lot of people talk about the potential impact to these fast, fast fashion brands. a lot of really popular, whether it's like. >> very popular among a lot of. >> people in fashion, all these really popular stuff out there. so a lot more reaction than you might think to a trade provision. >> yeah. >> and its impact on people's ability to dress. silvana, thank you very much. you got it. all right. coming up here on worldwide exchange, the one word that every investor has to hear today and the stock pick that every investor needs to know, plus why big tech is making its plus why big tech is making its way to washington. we're live in (vo) what does it mean to be rich? maybe it's not just about the places you can go... but also the people who welcome you home.

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bipartisan group of congress members, including senate majority leader john thune. high on their wish list is to be able to fully, again, fully deduct any research and development expenses within the same year. now, this single year deduction was a part of that tax package back in 2017. but since then that provision has begun to phase out. linda moore, the ceo of technet, which convened the meeting, said incentivizing r&d is going to help keep ai companies ahead of competitors like deep seek. >> the fact that research and development hasn't been given the expensing that it usually does in tax treatment has dramatically dropped our research and development in america. so we're going in completely the wrong direction. >> in addition to r&d, ai companies are also asking congress for a couple other things, including extending a 25% tax credit for chip manufacturers to build advanced factories in the u.s. credit is currently set to expire at the end of 2026. plus, ai companies

want to see more investment in small business. they're excluding capital gains taxes on investments in startup businesses that are held for at least five years. while lawmakers are still working on the tax package, hopes that it would be done in the first half of the year are slipping. house republicans have been unable to move forward on their one big, beautiful bill that they keep talking about. so now the senate has signaled that they're going to step in and take the first steps next week to move ahead with their plan, which would begin with border security and defense spending, leaving taxes for the second half of the year. frank. >> emily wilkins live in d.c. emily, thank you very much. we're going to stick with d.c. now. we have a news alert on the nominee for u.s. trade representative jamison greer has his confirmation hearing later this morning. we have some excerpts from his testimony that are out now. so greer says the u.s. needs a robust manufacturing base and an innovation economy to deter conflict. he also says resilient supply chains are critical for economic and national security.

we will follow that confirmation hearing throughout the day here on cnbc. all right. coming up here on worldwide exchange, trouble in chip land has three names that, you know moving sharply lower. you see them on the board right here. skyworks solutions falling more than 29% qualcomm down more than 5%. arm holdings down nearly 4.5%. plus ford ceo with some very choice words for president trump's trade war. ford shares down more than 5.5%. we'll be back right after this. >> high point university, the premier life skills university, is ranked the number one best run college in america by the princeton review. employers value hpa's real world preparation. students love unprecedented access to global leaders on high points, inspiring campus, and parents appreciate hpa's god, family, and country values. choose to be extraordinary at high point university. >> meet venu on the nyse

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investor. >> go pro with a flash sale offer for a limited time at cnbc.com pro. flash terms and restrictions apply. >> welcome back to worldwide exchange. as we close in on the 6 a.m. hour check on some of the big stories that we are following this morning, let's start with the trio of chip stocks sinking ahead of the open. let's start with skyworks solutions. you can see shares are down more than 29% on track to lose a quarter of its value at the open after forecasting sales declines and what had been a highly lucrative mobile segment. management on the call highlighting increasing competition to get their hardware into apple's newest iphones. shares of arm holdings also sharply lower, despite a q3 top and bottom line beat current quarter revenue and earnings forecast. however, they came in line with estimates. shares of arm down about 4%. shares of qualcomm under pressure as well, despite an all around positive earnings report and current quarter forecast, ceo cristiano amon speaking with cnbc, saying even deep sea is a tailwind for the company. still shares down more than 5%. we're also

following shares of ford this morning. they're sinking ahead of the open despite a q4 top and bottom line beat the company, forecasting a tough year ahead. however, with guidance coming in in line or just short of most estimates. ceo jim farley, speaking with cnbc yesterday, saying his company is not making moves with regards to tariffs, at least not for now. but they are watching the situation. >> we want a comprehensive policy, not just towards mexico and canada. we understand all the pressures on the border and with drugs. but the reality is, you know, hyundai-kia and toyota can import millions of vehicles through south korea and japan without these tariffs. we need a comprehensive look at such a tariff change. >> and we're looking at shares of honeywell. they're popping this morning up just about 4.5%. the wall street journal reporting the company is preparing to split into three independent companies, including separating its aerospace division from its automation business. and they also plan to move ahead with plans to spin off its advanced materials arm. again. shares of honeywell up just about 4.5% right now. one

more quick, one more quick check of u.s. stock futures and the green across the board. the s&p and the nasdaq losing some of their gains from earlier. the dow looks like it would open about 120 points higher. joining me right now is patrick ferzetti, managing director with rose advisors at hightower. patrick good morning. always good to see you. >> good morning frank. thanks for having me. >> all right. so patrick, let's start off with your word of the day. how do you see today shaping up? >> vibrant. you know, we're less than a week from pitchers and catchers reporting for spring training. and so hopefully it's usually the early sign of spring coming. and hopefully that vibrant nature carries over into the markets. >> you know it wasn't that vibrant patrick. the ism services report i want to get your take on that. what did you make of that? i mean, it seems like we're past the point where we're kind of reacting to every single economic report. but this one seems very interesting because again, we're really a services economy right now. i know the president's trying to move us into a manufacturing economy or at least increase

that, but we're really are a services economy. >> that's right. 80% of our economy is related to services. but that other 20% really creates volatility, right? when it has when it comes to goods and manufacturing. and so we were a little less than expected on yesterday's ism report. and while i do appreciate that every piece of economic data doesn't seem as as important these days in a news cycle that's ripe with headlines, particularly with the new administration, it definitely still has some some credence and can certainly move markets. >> okay. so i also want to get to your pick for us today. we teased it a little bit earlier. you have a pick in the transport space. what is your pick for us today and why? >> norfolk southern when i look at the potential beneficiaries of an increasingly globalizing world, let's be honest, when there's talk of tariffs and such a domestic transport name like norfolk southern, which is more east coast, mid-atlantic,

southeast rail, they're taking market share from other from other competitors. they reported last week, continue to see their operating ratios move down, which is a positive in the rail space. and i'm expecting sort of low teens compound growth from this name in in the coming years. it's attractive name that had underperformed up until now. >> i mean, speaking of underperformance over the last year, it's up just about a quarter of a percent, almost flat right there. i listened to that call as well, and they cited tariffs as a headwind. aren't you concerned about that at all, that the company itself is citing tariffs as a headwind? when we saw a number of other companies saying it wouldn't be a headwind at all. >> yeah. well, look, i think a lot of that is headline risk. right. and that's where the opportunity comes ultimately, you know, when you think about tariffs overall for the economy it's a negative for sure. but as as things shift to a again from a in a globalized world to north american production, you know, whether it's mexico, canada or

the us, i think the beneficiaries will be the companies that actually move the picks and shovels around. and that would be certainly the rails. and i think norfolk southern fits that. >> patrick rossetti, thank you very much. your pick for us today is norfolk southern. you have a great day. all right. that's going to do it for us here on worldwide exchange. coming up squawk box. have a great day. >> good morning. chip stocks under pressure following quarterly results from qualcomm and arm holdings. we'll show you what's moving next. and today is the deadline for federal workers to accept buyout offers. reports say 40,000 people have now agreed to what's called deferred resignation. and the white house expects more as the deadline approaches. and alphabet's google is the latest company to roll back dei initiatives. company cited its status as a federal contractor. it's thursday, february 6th, 2025, and squawk box begins right now.

>> good morning, everybody, and welcome to squawk box right here on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with andrew ross sorkin and yes joe kernan. he's back. how are you doing? >> the hair is back. i'm working on it. it's quite a bit of work. >> nice to. >> see you, sir. thank you. welcome back. thank you. it's good to be back. a lot of people were were concerned. >> a lot of people. >> worried about you. a lot of people were concerned. i'm good, i'm good. it was a real thing. i've. i don't have my appendix. and now i don't have a gallbladder. and the rest of them, i think i want to keep you know, i don't the other organs. yeah. there's two you can kd