else. it's a great value. >> jim cramer gives you much more than you would ever get from any advisor. >> he teaches how to invest versus just what trades to make. return on investment. >> for the club. >> pays for itself. >> join the club last day for new member savings go to cnbc.com jim. now terms and restrictions apply. >> it is 5 a.m. here at cnbc global headquarters. welcome to worldwide exchange. here's your five at five. two days and a 1200 point loss on the dow today. futures. they are bouncing. so investors are asking what's happening and what do i do now. plus wall street warnings from two major market titans in berkshire hathaway's warren buffett and mets owner steve cohen. >> there's definitely. >> a period. where i. >> think. >> the best gains have been had. >> and wouldn't surprise. >> me. >> to see. >> a significant. correction and a change at the top of europe's largest economy after a critical election. as international

stocks, they continue their 2025 surge. it is monday, february the 24th, 2025, and you are watching worldwide exchange right here on cnbc. good morning. thanks so much for being here with us. i am frank collin. i hope you had a great weekend. let's get you ready for the first trading day of this week. as always, we begin with the markets the s&p, the dow and the russell all coming off their worst days of the year. the nasdaq having its worst day since deep sea. but take a look here at futures. we're seeing a bit of a bounce back at least when it comes to futures. all three indices up over a half a percent. the dow actually doing better looking like it would open up about 280 points higher, up just about three quarters of 1% right now with this action that we're seeing right now is after the sell off on friday, fueled largely, or at least in part by weak consumer numbers and the highest five year inflation outlook since all the way back in 1995, in the michigan consumer sentiment report. taking a look right now in the pre-market, these are the

s&p gainers. you see costar group right here at the top of the list still moving higher after earnings last week. expediters those shares up over 3%. so big logistics company supermicro perhaps moving higher ahead of nvidia earnings, norwegian cruise lines and nike rounding out the top five. the other side of the coin the laggards this morning taking a look we're seeing henry schein pull back 2.25% followed by vistra energy player federal investment, discover financial and monolithic power rounding out the bottom five. we're also seeing three parts of the market move into correction territory. the russell. we're going to talk a lot more about small caps later in the show. also materials and the transports, all three of them up about 10% off their recent 52 week highs. we also look at the bond market bonds yields actually moving lower as investors look for safety. take a look at the benchmark. the ten year right now at 4.42. moving more than ten basis points lower than the levels that we've seen recently. again investors going to safety. so we've seen a lot of investors going into the bond market. we've seen a lot of volatility in the market. speaking of a move to safety gold coming off

an eight week win streak, its longest since all the way back in 2020. right now you see gold is up fractionally higher. if you look right here at from the start of this year gold's up over 12%. and we look at the energy market as well. wti coming off this fifth down week. natural gas finishing double digits higher on the week last week. right now we're seeing oil pulling back very slightly fractionally lower natural gas a big pullback pulling back more than 5% okay. that is your setup. let's now see how europe and asia are following wall street's lead jp young is standing by in singapore. our julianna tatelbaum is live in london. julianna good morning. let's begin with you. after the election results in germany, europe's largest economy, also the top defense spender in the eu. >> well, frank good morning. yes. investors are digesting that sell off on wall street on friday. but they're also firmly focused on germany. this morning, germany's christian democrats and their leader friedrich moritz, are poised to lead the country's next government after claiming victory in yesterday's federal election. latest results put the cdu, csu union parties on just

under 29% of the vote. chancellor olaf schulz's social democrats slumped to third place, picking up just over 16%. that was the party's worst result since 1887. we also saw the strongest performance ever from the afd, the fringe right wing party in germany. they are not expected to be part of the government, but really extraordinary to see that push to in support toward the afd. as for the markets, we're seeing a strong performance in the dax once again after what has been an incredible run for the german market in the lead up to the election. as you said, frank, the expectation here from investors is that this new government will be spending more. where are they going to be spending? we'll take a look at the dax gainers this morning. it tells you a lot. we're seeing continued demand for the defense names in germany. rheinmetall up more than 3.5% this morning. we're also seeing a lot of demand for the utilities in germany. on the downside the laggards in germany we've got siemens energy down more than 5% this morning. it seems to be

less about the german election result and more about reports that microsoft is canceling leases for ai data centers. so one to watch from a single stock perspective. but overall, frank, european equities doing pretty well this morning. >> all right juliana thank you very much. we turn our attention now to singapore and our jp ong with a look at the trade in asia. jp. >> yeah. >> frank, it was a day of setbacks. >> for asian stocks for the most part. >> a number of reasons. of course we. >> took note. >> of that overnight. sort of fall. >> or decline actually for wall. >> street on friday. and also. >> ongoing trade uncertainties keeping. investment and investor sentiment in check, but. >> also very sluggish, as you. >> can see here with japanese markets were offline today because. >> it's the emperor's birthday. >> apparently nobody touches that out in tokyo. but we did see stocks from seoul to shanghai actually fall back. now, it was more interesting for chinese markets, actually, when you look under the hood, the tech index still very interesting because. >> while the hang. >> seng tech index did pull back, we saw the likes of smic, the chipmaking stocks in shanghai and hong kong actually rally. >> thus. >> indicating perhaps that the deep sea fueled renaissance in

chinese tech shares continues. alibaba closed in the red, though, despite the fact that they announced they're going to invest over $50 billion in ai technology over the next three years. now probably more interesting, actually more. confident is the sight of these mainland property developers, the real estate stocks in china, with the hang seng mainland property index popping by more than 3%. there have been reports that some developers, like china overseas, for instance, have been bidding for plots of land in china at 20% premium, thus indicating that perhaps the worst may be over for the chinese real estate sector. frank, it's back to you. >> all right, jp, thank you very much. jp ong, live in singapore. want to turn our attention now back to the us markets and small caps. you can see right here small caps entering correction territory on friday after falling 3%. the high for small caps hit back in november following the election the russell. now more than 10% below its most recent 52 week high. the michigan consumer sentiment report, coming in softer than expected, was one factor. also within that report, the read on five year inflation expectations that came in at 3.5%. you can

see right here highest read since 1995, largely fueled by tariff concerns. that's especially troubling for the very interest rate sensitive small caps. it's a trade that's really dominated by cyclical sectors. you see a considerably lower concentration for the financials, industrials and the materials in both the s&p 500 and the nasdaq 100. that inflation read is only adding to the lack of clarity about when or if rate cuts are coming. and one of the reasons we've seen investor sentiment shift now, according to state street, small caps this year. year to date, they've seen nearly $1.5 billion in outflows after seeing about $11 billion in inflows following the election in november. big shift when it comes to consumer sentiment right now, we want to check some of the small cap names and that are going to actually be reporting this week. ambarella chipmaker that's one of you can see it's more than 8% off of its 52 week high. another name beyond meat big drop for beyond meat off its 52 week high, more than 66% below its 52 week high. another name a lot of people know amc. those shares

about 70% off their 52 week high. so we'll continue to watch the small caps. once seen as a trump trade, certainly under a lot of pressure in recent days. all right. turning back to the broader economy. some fresh worries, technical breakdowns in the russell and the s&p 500 and more than a thousand points off the dow in two days. when investors think are thinking and what should they do with their money. joining me now is robert teeter, chief investment strategist at silvercrest asset management. robert, good morning. good to see you. good morning frank. great to see you again. if you don't mind, let's start off with the small caps. what's your view on the small caps? once a trump trade we just hit on some of the big inflows following election. a definite shift when it comes to sentiment since then. >> yeah. >> i think. >> the link between the trump trade and. small caps is really seen through. >> the eyes of the economy. >> so the. view was. >> that the economy. >> would be accelerating. >> a bit. that's good for small caps. >> the view was also. >> that rates would be coming down. >> and that's required for. >> small caps, which. >> have a bit. >> more sensitivity to. >> financing activity. so i think it's a bit of a rally delayed. there's some policy uncertainty at the moment.

>> we've been. >> seeing some economic data that's. perhaps not as encouraging as investors were expecting. >> and so. >> it is a. >> bit of. >> a rally delayed. i do. >> think small caps will come into their own later in the year. but for now this is a very choppy. market with a lot of rotation going around, and small caps are bearing part of the brunt of it. >> given some of. >> the concerns. >> over the. >> economy and the. >> rate backdrop. well, i think that's the word you just of the word the day maybe today choppiness with this current environment. i mean, what would you advise some of your clients to do right now? are there good safe places to put money? are there places that you see genuine opportunity for upside right now, today? >> well, one of. >> the. >> things that's really interesting is we think. >> diversification is starting. >> to. work a. >> little bit, not into small caps, but within the s&p 500, for example, the equal weight benchmark has been doing quite well this year. within technology, for example, the average technology stock is. >> outperforming the tech sector quite significantly. >> and so it does seem like investors. >> are looking for some of that diversification to protect themselves. against some of these. policy risks. and so that's. >> one of the. >> things that we're looking. >> for is. just being very

careful in terms of selection, staying high quality. but also maintaining some of that diversification. health care is an interesting sector. >> as well. it's an area that. >> has had. >> you know, a. >> lot of problems in terms. >> of. >> profit margins, recovery from the pandemic. those margins seem to have stabilized. it's a. >> sector. >> that we. >> think can cut out some costs and increase productivity pretty significantly. >> so that's. >> another area that looks interesting to us. >> all right, robert, one area we have to talk about are bonds. we've seen a lot of investors go to bonds. that's largely why we've seen yields decline. another reason for the yields declining could also be concerns about economic growth due to tariffs and other policies. how are you viewing the bond market. is there one area where you see that as attractive? do you actually believe that is a safety play? >> well, it is a safety play sort of showed itself to be that way late last week. >> it's discouraging in that the bond rally came about. >> for the. >> wrong reasons. you know, not not inflation coming down, but rather concerns over the economy. we're not terribly concerned about the economy. >> we think. >> it's a downshift. >> in growth, but still will be. >> positive growth this year. >> and i think we'll be a. long move. >> towards lower. >> rates in bonds. so we're pretty comfortable with with the

ten year. but i think it's just. >> going to take, you. >> know, a. >> lot of time. >> to bring. >> that bond. rally into play. >> it happened a little bit more quickly. >> for. >> the wrong reasons last week. but we think the path is lower for rates over the longer haul. >> what about international markets? are we going to spend a lot of time talking about germany today after their elections? how do you view international markets? are you seeing opportunities there for the rest of the year after some outperformance compared to the us markets to start the year. >> there are some good opportunities there. >> i think, you know, some of the economic and. demographic challenges remain, but there are a lot of great companies with good valuations overseas. >> and so. >> we've been encouraging investors to maintain that diversification that's starting to come into play this year. >> so that's. >> another example i. >> think of this. >> you know, maybe call it hidden. rotation where you're not quite getting the. >> rally super. >> broadly. >> but within the s&p. >> and towards overseas. >> you're starting to see some of that rally. some of the stabilization in the dollar i think helps too. not as much dollar strength here. and that helps the non-u.s. sector as well. >> robert teeter, thank you very

much. always a pleasure to see you. thanks, frank. >> great to see you. >> all right. a lot more to come here on worldwide exchange, including my one stock pick. my next guest says is likely to ride the german leadership change to new highs. but first an earnings turning point courtesy of president trump is inflation takes a backseat to a new major market risk. plus, reading between the lines in warren buffett's annual letter to shareholders and why his actions, they may actually speak louder than his words. we have a very busy hour still ahead on very b david takes prevagenon worldwide for his brain and this is his story. nice to meet ya. my name is david. i've been a pharmacist for 44 years. when i have customers come in, i recommend prevagen. number one, because it's effective. does not require a prescription. and i've been taking it quite a while myself and i love it when the customers come back in and tell me, "david, that really works so good for me." makes my day. prevagen. for your brain.

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>> welcome back to worldwide exchange. turning now to washington. multiple government agencies and unions telling federal workers over the weekend not to respond to an email from elon musk and the department of government efficiency demanding the account for their work over the last week. this despite a threat from musk that they will lose their jobs if they do not. meanwhile, bloomberg reports the trump administration, they've told mexican officials they should put tariffs on chinese imports to help avoid their own tariffs from president trump. this is the most recent fund manager survey from bank of america. shows tariffs have now passed inflation as the biggest risk for stocks. the market's initial enthusiasm around the second trump term also dwindling the dow the nasdaq. they've now turned negative since trump's inauguration just over a month ago. the s&p still up slightly, though all three are still positive since the election. let's bring in brian gardner, chief washington policy strategist at stifel. brian, good morning. good to see you. >> good morning frank. >> good to be. with you. let's start off with some of this confusion in d.c. about this elon musk, you know, emails that

you have to explain what you're doing. over the last week, several trump appointees, they've actually said that their staff and their agency shouldn't respond to these emails. how does this impact not only, you know, the way things are running in d.c, but also investor confidence? so, you know. >> elon and. >> the doge has come. >> in with. >> a tremendous amount of energy. as they're trying to tackle various problems of government spending. i think some of it has been chaotic. there's been a little bit of shoot first, ask questions later. there's a lot of good things that go on with with trying to find government efficiencies. >> but it certainly. >> is confusing some. investors about the direction of. us government policy. >> and the ability. >> for the us government to react in an efficient way. >> i mean, it. >> can be counterproductive if you fire too many people. >> too. >> quickly and government. >> doesn't operate and provide the services that it's supposed to. >> so i. >> think investors are just. >> generally trying to find out what's going on, what direction

we're heading in. they are looking for a resizing of the us government to get the debt trajectory on a more sustainable path. and i think there's a lot that they like about the trump administration. >> but this particular. >> approach has been a little bit confusing to them. over the recent days. we've talked a lot about china, chinese equities actually having a big surge, a lot of big name investors seeing a lot of confidence in china. the thought basically being that president trump would have a better relationship with china. i'm looking at the headlines over the weekend. he's rolling out memorandums on chinese tech, also telling mexico to put additional tariffs on chinese imports. how is this china dynamic? how is that impacting not only investor confidence, but also how people see some of these other policies? because i think a lot of people maybe you're one of them. they saw a method to the madness. is some of these recent or some of these recent headlines. is that changing that perception, do you think? i think there is a method to the madness, and it's difficult to look at all of the tariffs in the same. >> bucket because they're all different. trump uses tariffs.

>> to achieve. >> other goals, whether it's. >> mexico or canada. but how what those goals are. dictate what the tariffs are going to. >> look. >> like and what the negotiation process is like. >> let's go. >> back to the china tariffs. when they were initially announced, they were only 10%, even though during the campaign. he said 60%. well, i think it's pretty clear that he sees china as a useful partner in negotiations with russia in trying to settle the ukraine situation. so there is another geopolitical element to the. tariffs vis a vis china. in addition to trade. on the trade side, he clearly wants a more reshoring of u.s. manufacturing, u.s. production back in the united states. and he sees mexico as as an impediment to that. as you know, in the wake of the initial tariffs back in 2018 and then the renegotiation of the usmca, the successor of nafta. so a lot of chinese production moving towards mexico

and to trump that and to many republicans, that's a problem. so there. >> are a. >> bunch of different factors at play in terms of how they approach china. i think the tariffs are still coming. but again, with trump, you know, there can be a delay, there can be putting off. and in order to, to get the outcomes that he's looking for. you know brian, there's some new developments also when it comes to europe. the expected next chancellor of germany, europe's largest economy, biggest defense spender come out saying that europe should actually seek its independence from the us. how does that that dynamic potentially impact how not only investors view europe, but also how this administration could potentially view europe? >> so it's one. >> of the biggest. >> trading blocs with the united states, obviously, in a post world war two. >> world. >> it's been a very, very close relationship. europe, to its detriment, has not been paying attention to signals coming out of the united states. i think they thought that the first

trump administration was just a passing fad, and that would go away, and that the relationship would continue. as is. but i think european leaders, they they've not been paying attention to the signals from the united states. they've not been listening closely enough to their own voters. and i think there is a level of disharmony in europe that we saw in manifest itself in part of the german elections. >> and i think. >> you're going to see more tough talk between the us and europe, especially on the us side. i think the, you know, a number of the tariffs that have been rolled out and more to come have europe in mind. while the headlines initially were mexico, canada, china, i think there's going to be a lot going on with europe as we as we progress here. and i think it's going to be a policy headwind for investors. brian gardner, so much to talk about. i don't think this will be the last time we're talking about u.s. european relations or the u.s. relations with a number of other countries. thank you always for your time and for your insight.

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>> all. welcome back to worldwide exchange. we are celebrating black heritage this month. only 2% of certified financial planners here in the u.s. are black. it's underrepresentation. the association of african american advisors, or quad a, is addressing by sponsoring 100 students, giving them free prep classes for the security industry essentials exam, or the c is sponsoring students at colleges all around the country, including historically black colleges and universities. like howard, students in that school of business will be in the first group in this new program that quad hopes will increase representation in financial planning and increase the number of black families investing outside of the 401 k. >> representation matters cfrps are more qualified. it's beyond talking about. >> a 401. >> k, it's estate planning, it's tax strategies. >> those are very. >> essential in our community. and we. >> think about the. >> wealth transfer.

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skeptical. >> of these new highs. >> that bearishness and. >> concerns about tariffs. >> means there's a wall of worries. >> and there's. way too much uncertainty right now. if you can't handle this. >> sort of a sell off, then you shouldn't be an investor. >> so that's just a taste of what market insiders were saying on friday as stocks faced their latest reality check offering a bearish take this morning. you can see futures are suggesting investors looking to buy the dip and start the new trading week on a bit more of a positive note. welcome back to worldwide exchange i'm frank holland. coming up this half an hour we make sense of the pressure facing stocks lately. plus we take a look at the signals that warren buffett and berkshire hathaway may be sending with their latest moves. but first, let's get you ready for the day ahead. we begin with the markets, the major averages the s&p, the dow and the russell. all of them coming off their worst day of the year. the nasdaq its worst day since deep sea. but take a look here. as we just showed you a short time ago a bit of a bounce back when it comes to futures. the dow looks like it would open up nearly 300 points higher. the s&p up about a half a percent similar upside

move for the nasdaq as well. so we're seeing this action after the cell phone friday fueled largely, or at least in part by weak consumer numbers and the highest five year inflation outlook since all the way back in 1995, the michigan consumer sentiment report. right now, we want to take a look at some of the biggest gainers on the nasdaq 100 in the pre-market. taking a look at the action there, we're going to show you in just a second. we're going to move past it, but got some up, some ups and downs when it comes to nasdaq. in the pre-market, we're also seeing three parts of the market not showing upside moves. they're definitely showing downside moves through parts of the market in correction territory. we are talking the russell materials and the dow transports all three of them more than 10% off their 52 week highs. and we take a look at the bond market actually moving lower yields there. as investors, they continue to look for safety and also have some concerns about economic growth here in the us. quite a different story when it comes to gold. gold coming off an eight week win streak as long as since 2020. right now you can see gold is up fractionally. also looking at the energy markets wti coming off its fifth down week right now wti and brant crude both of them up a bit of a reversal from

what we saw half an hour ago. both of them up wti up about a quarter of a percent. brant crude up about a third of a percent. also looking at natural gas under some pressure this morning. down more than 5% after a double digit gain last week. and last but certainly not least, quick check on europe looking at germany's mid-cap mdax. you can see it's up just about two and three quarters of 1% on the back of those election results. this index basically the german small caps on pace for its biggest one day gain since all the way back in december of 2023. okay, that's your set up. we're going to turn back to the us markets. now. the dow is to two day 1200 point slide. and now new comments from two major market titans mets owner steve cohen and berkshire hathaway ceo warren buffett, both of what many see as a wall street reality check. cohen, speaking at the future investment initiative institute summit down in miami, forecasting us growth to fall to 1.5% in the second half of this year from its current 2.5%. >> the reality. >> is you've got a brew of

sticky. >> inflation slowing growth. >> and austerity in the government. and so i'm. actually pretty. >> negative for. >> the first time. >> in a while. >> there's definitely a period where. >> i think the best gains have been had. >> and wouldn't surprise me to see. >> a significant correction. >> then of course, we have the oracle of omaha, warren buffett, telling investors in his annual shareholder letter berkshire's preference for investing in equities equities. that won't change, but says these days and this is a quote, often nothing looks compelling. very infrequently, we find ourselves knee deep in opportunities. important to note berkshire's holdings of cash and equivalents, like treasuries, that now accounts for 53% of his company's net assets, and berkshire has sold more stock than it's bought for now. nine straight quarters. joining me now to dig through all of this is bleakley financial group chief investment officer and cnbc contributor peter boockvar. also with me, cole smead, chief executive officer and portfolio manager at smead capital. both

firms are berkshire hathaway shareholders. gentlemen good morning. great to have you both here. >> good morning frank. >> peter, you're here in person. great to have you here. let's start off with you. what do you make of some of this cash positioning when it comes to berkshire hathaway? and the fact that warren buffett saying he's not seeing a lot of opportunities out there. i would have liked. >> some more elaboration from warren in that letter, rather than just that one sentence. >> but don't actions speak louder than words? if you're selling more than you're buying for nine straight quarters, what else did you want him to say? >> yeah, no, no, for sure. you know, the market trades 2223 times earnings. i think we're in the midst of a regime change here in the markets and the global markets, where us mag seven is no longer going to be the dominant driver of overall market gains. and that what we've seen so far. investors are trying to find things in europe. they're finding things in asia. it's not just those seven that are sort of stealing all the market thunder. and i think that that's a major change, at least

for the s&p index, which is still dominated by those names. so i think hopefully investors are going to sort of widen their imagination in terms of things to buy. >> cole, come on over to you. you're also a berkshire hathaway shareholder. what do you make of some of the cash positioning when it comes to berkshire hathaway and the fact they've actually been net sellers when it comes to equities now for basically two years? >> yeah, it's a great question. thanks for having me, frank. so the simple answer is that investment opportunities, like buffett said, are a scant as his opinions, whether they are negative and positive on, you know, equities in general. there are not berkshire like opportunities out in the stock market, which means there are not s&p like opportunities out in the stock market. that's the real conundrum if you're a big investor. so that is what buffett's not saying is you know there's no opportunities. that's not what he's unequivocally saying. he's just saying that if he's going to put anywhere from a billion at the minimum, to really a $10 billion investment into something, he just doesn't see anything broadly. and to follow what peter is saying, you

know, when he says regime change, this is nothing dissimilar to the nifty 50 and 72, the.com bubble in 99. or if you harken from a bigger picture level on a global basis, this is like japan in in 1989 or china in 2010. the problem is the dominance of stock returns is not sustainable. it's not unique to us. it's just true for many markets and governments out there. and the reality is most of the wealth management business and really wealth in the world is tied up in the s&p 500 and therefore it could be very damaging, even though the fact is that american exceptionalism has been practiced in capitalism in a very unique way. the problem is, most investors won't make money off that over the next ten years. >> all right. cool. i kind of want to lean into some of the things you're talking about. the fact that warren buffett is not seeing a lot of opportunities here in the us, but he is seeing opportunities overseas, at least in japan. he said they would continue their investments when it comes to japanese trading houses. do you agree with that kind of take that there are

better opportunities overseas, whether it be japan and possibly europe. we just kind of hit on the german small cap index, having one of its best days in several years. are you seeing opportunities, specifically japan and europe? >> well, let's say if you go if you go, look in what he said about japan, he's effectively doubled the berkshire money in japan, looking back over the last six years now, is that historically, berkshire like in returns? the answer is no. a 12 to maybe 14% compounded return is not on the high end of outcomes for what buffett has sought. historically speaking, the reality is for the kinds of risks he wants. that's a great return. the problem is he can't sink, you know, 100 to $200 billion into those kind of opportunities. so what i think it says is, is, you know, if you're a blackrock, if you're a state street, if you're a big asset manager, congratulations. there is no opportunities out there like there is not for berkshire hathaway. if you run a billion to maybe $30 billion, there's opportunities for you. or if you're a small investor,

you're a retail investor. there's opportunities in those spaces. the problem is most of the capital is tied up with the biggest people in the world. therefore there's no opportunity for the asset managers. >> peter, i'm going back over to you. i mean, we spend a lot of time talking about warren buffett's doing, of course, oracle of omaha, a very famed investor. but a lot of people are trying to figure out what to do with their money today. what would you tell them? where are you seeing opportunities right now, whether it's the bond market, the equity market, maybe commodity market, where are you seeing potential upside when the rest of these markets seem to be facing a lot of volatility? >> well, to follow up on what carl just said, the whole world is in the mag seven. so we're trying to find things ex mag. seven finding very attractive opportunities in oil and gas stocks, commodities generally uranium, precious metals, gold mining stocks we own a bunch of that are very attractive fertilizer stocks. >> and ag. >> also beaten down food stocks and also in europe. speaking of investing outside the us, finding opportunities in asia, very bullish on the growing middle class in asia and also

energy stocks in europe. shell and bp, for example, are trading at almost half the multiple as exxon and chevron. so i do i don't think that this shift away from the mag seven is just okay, a quarter or two. % >> this could be a multi year thing where investors are going to find money to be made elsewhere and outside of the us. >> what about specifically germany, the person that we expect to be the next chancellor, saying that europe needs to find its independence from the us also, biggest economy, biggest defense spender. i think that was one of the areas that you're also looking at. >> well, not. >> only. >> in independence from the us, but they also need to. >> find growth again. >> germany obviously hurt themselves with the russian war paying more for energy. they need to turn back their nuclear plants. i think europe as a region is finally understanding that a lot of their economic sclerosis is basically doing it to themselves, and i think there's going to be a lot of easing on the regulatory. >> state in europe. >> that could increase economic growth in the coming years there. >> all right. peter boockvar, great to have you both here. thank you both. >> thanks, frank.

>> turn our attention now to another area of the market, and one that's growing increasingly critical to wall street and main street sentiment, especially in the light of last week's sell off. our dom chu joins us now with this month's sector mix and a closer look at real estate dom. >> all right. so, frank, the. >> real. >> estate sector. >> is outperforming the s&p so far. >> this year. but it ranks. >> eighth out of 11 sectors in terms of performance overall. it's up about. >> 4.5% in. >> the first. >> month and three weeks of the year so far in 2025. real estate is up about. >> 11% over the course. >> of the last year. now. >> the spider real estate etf tracking. >> the. >> sector had. >> a dividend of 3.3% as of friday's close and is right now right between the 200. >> day and 100 day moving averages. as you can kind of see here. >> the top performing. >> stock in the sector so far this. >> year has been welltower, which is. >> a non-hospital health. >> care related. >> real estate investment trust. >> it's up. >> about 19% in 2025, hitting a high last week. prologis is the

second. >> best performer. >> the logistics warehousing company. >> is up about. 14% in. >> 2025. >> 11% from the march highs. >> you can see there. now then, this is. another health. care reit. >> up about 13.5%. >> this year. >> 1% from the october 31st. >> high dividends. >> for ventas and prologis are right now both below the 3% mark. meanwhile, you've got federal realty. kimco iron. >> mountain at. >> the bottom of the pile so. >> far. >> this year. federal realty and kimco have dividends in the 4% range. iron mountain is more in that three and one third percent range as well. now in the next hour, we're going to go. >> focus in on the. office reits, the ones in. >> the. 10 a.m. eastern. >> time hour. >> we're going to turn our focus towards the. >> data center reits in that particular hit. >> so frank. >> the real estate. sector very much. it's not the biggest one out there. but it's becoming increasingly important. >> for dividend. >> seeking investors. and of course all those ones looking. at that. next play on artificial

intelligence and data centers. frank, i'll send. >> things back over to you. >> all right. don, thank you very much for this month's economics. all right. coming up, a blockbuster deal overseas. that's that has former grubhub owner jesse takeaway surging details on worldwide exchange returns. stay with us. >> sector nomics is sponsored by sector spider etfs.

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discretionary sector, the sector falling more than 4% on friday and the market sell off following the weaker than expected reading on consumer sentiment. it's now down more than 10% from its 52 week high. the biggest drag on the consumer discretionary sector coming from travel related stocks, including cruise ships and casinos. coming up on worldwide exchange, the next major test for the markets this week, it's nvidia. the growing challenges and the pains facing the ai giant ahead of its latest results. you can see shares right now up in the premarket up just about 1%. but over the last three months since it last reported shares down nearly 4.5%. stay with us. we'll nearly 4.5%. stay with us. we'll have ♪♪ [inner monologue] this is going to sound crazy. but i know these attack vectors. oh, had a little upgrade have we? ♪♪ okay, so that's how you want to play. ♪♪

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bulls. the stock is flat this year as worries they've kind of creeped up over possible shortages and delays for the new blackwell chips. kristina partsinevelos joins us now with much more on whether that could be an overhang for this company that's become so important for the market. christina. good morning. good to see you. >> yeah. >> it's so. >> important because. >> it's really had a history of crushing wall street expectations. >> and held by so many. but lately the stock has been stuck, like you alluded to, around $135 just for the past. >> eight months. >> or so. so stuck in this range despite having one of the strongest growth stories in technology. so the question is, like you mentioned, what's holding it back? well, you've got recent supply chain checks suggest there are some delays with their gbx 200 rack shipments. those are high powered cpu central processing units and gpu boards. it turns

out managing power and heat at this. >> scale is really tricky. >> and that's pushing initial production into q1, with the first full quarter of shipments likely happening in q2. in other words, the blackwell sales ramp might actually take a little bit. longer to kick in, but nvidia's ecosystem is still showing signs of strength. so you've got suppliers. tsmc, taiwan semi just issued strong guidance. foxconn's outlook is improving. also supplier and companies like dell and hp are already securing blackwell based servers. it looks. >> like nvidia. >> is finding ways. >> to navigate these challenges so far. >> and that's why wall. >> street isn't really hitting the panic button yet. you have some estimates that definitely have come down, but most analysts still. >> expect nvidia to. >> do what it does best, which is beat expectations possibly by over $2 billion, because that seems to be what they've been doing over the last few quarters with strong guidance to match. so while blackwell's rollout might take a little bit longer, the fundamental nvidia growth

story still remains intact. >> it's just. >> right now a matter of timing, which could temper demand, or it could temper the big jump in the stock post earnings. >> all right. so you're talking a little bit about timing. let's go back to a few weeks ago. the timing of the deep sea revelation kind of shocked the markets. i'm looking at the charts since then nvidia basically down 5%. are there concerns about demand after deep sea and is there any potential for nvidia earnings just due to less demand after deep sea to not just completely blow things out off the top here? any concerns about that? >> yeah. >> and to your point, deep on that monday, nvidia shares dropped 17%, wiping off almost $600 billion in market cap. deep sea is a low cost chinese ai model. and the concern is that, hey, they were able to make this. >> really impressive. >> model with. lower quality. >> nvidia chips. what we're seeing are, according to a lot of analysts checks right now, is there's been a bump in demand for these lower quality h20 chips. so that's helping demand. the second part is there's demand coming from all other avenues. you have the capex

spend from hyperscalers, the top ten hyperscalers. >> up 32%. >> year over year. you have this $500 billion stargate project over the next five, four years in the united states to help build up ai infrastructure. the eu is doing something similar as well. they're going to be spending about 2 to $300 billion. you have xai. elon musk's ai project. so you have all of these other sources of demand that should sustain the demand in the next few years. after that, then it remains a big question when monetization continues to press a lot of shareholders. and you may slow things down, but right now it seems like the demand sustainability is still in the cards over the next two years. >> christina, thank you very much. coming up here on worldwide exchange, our next guest. top idea to play off the german political shake up, shake up on the back of this weekend's elections that stock up more than 25% this year. we will reveal our mystery chart coming up after the break. and if you haven't already, you should follow our podcast. if you missed us on worldwide exchange, check us out on apple, spotify

or other podcast apps. much more after this break. >> we'll tell. >> nlds has. >> been hunting for the best entrepreneurs. >> across africa. >> to tackle energy poverty. farmers are highly dependent on rainfall, but water is scarce with drought. our solution is mobile solar containers for off grid farmers, which uses ai to make irrigation more efficient. being an entrepreneur is not an easy task if you have to have faith that a door will open. ubuntu means unity. >> this is how. >> this is how. >> we're going to (grunting) at morgan stanley, old school hard work meets bold new thinking. ( ♪♪ ) partnering to unlock new ideas, to create new legacies, to transform a company, industry, economy, generation. because grit and vision working in lockstep puts you on the path to your full potential. old school grit. new world ideas. morgan stanley.

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better. i wake up every morning and i look at it and i like it. i'm so happy with it. >> the cnbc. >> change makers returns. >> 50 women innovating and driving change across industries. find out who has. >> made this year's list. meet the. >> new icons. >> the cnbc. changemakers reveal. today on squawk box. >> the day's top stories driving. >> wall street. >> brian sullivan joins kelly evans power. lunch weekdays two eastern, cnbc. >> get invested. join the club. >> the value you're going to get from making better investments more than outweighs whatever the cost of the. >> membership is. join the club last day for new member savings, go to cnbc.com now. terms and restrictions apply. >> welcome back to worldwide exchange. as we close on the 6 a.m. hour, check on a few big stories that we're following. microsoft has begun canceling leases for a substantial amount of data centers here in the u.s, according to td cowan. the brokerage writing the apparent

move is similar to one meta previously took when it cut back its capital spending. meanwhile, alibaba announcing plans to spend more than $50 billion over the next three years on ai infrastructure. the company says that investment is more than what it spent on ai and cloud computing over the past decade. bloomberg is reporting president trump has warned u.s. drug makers to move their production back to the u.s. or face possible tariffs. the report adds the president would not commit to easing biden era policies that were impacting drug makers. president trump also announcing he's named conservative commentator dan bongino as deputy fbi director. bongino, who doesn't have fbi experience, previously served in the new york police department and in the secret service. continental resources founder harold hamm telling the financial times u.s. oil producers will not be rushing back into russia if a peace deal with ukraine is reached. a notable supporter of president trump says russia has previously been a tough area of operation for the producers. and shares of jesse takeaway are soaring in europe on a potential takeover bid by process for a $4.3

billion. shares of just eat surging on the news while process is actually pulling back. you see right here. shares of just eat up more than 50%. all right, turn it back to the markets. stocks looking to shake off friday's sell off and kick the new trading week off in the green. taking a look. futures in the green across the board right now. looks like the dow would open about 300 points higher for much more on the trading day ahead. let's bring in gina sanchez, ceo of chantico global and a cnbc contributor. gina, good morning. good to see you. let's say we're having some technical difficulties. gina, can you hear me? we just lost you on the screen. all right. we're going to give gina just a second to try to get back to us. then we're going to take another quick look at the futures right now. we were showing you earlier today. futures in the green, a bit of a bounce back after the markets had their worst day of the year on friday. huge sell off in part due to higher than expected inflation numbers. and that michigan consumer sentiment report the five year outlook on inflation 3.5%, the highest five year outlook since all the way back in 1995. part of that is one of the reasons we see bond yields continuing to move lower. right now, the benchmark at

4.43, moving quite a few basis points lower than we've seen in recent days. also look at some other parts of the market right now this morning taking a look actually you know it looks like we have gina sanchez back with us. gina, can you hear me? >> i can hear you. >> all right. very temporary problems. great to still have you with us. why don't we go with our word of the day? as we were just talking about futures bouncing back after the worst market day of the year. >> so my. >> word of. >> the day was shift. >> i mean, i just see so many shifts in. >> the shifting is. >> continuing to happen. and we. just kind of have to keep adapting as investors and evolving our tactics. >> and our. >> our, you. >> know. >> our strategies. >> so we have to continue, you know, evolving these strategies with so many changes, whether it's trade policy or just investor sentiment or consumer sentiment. so if you're talking to clients, where are you putting the money to work right now? what parts of the market do you think look attractive? >> we'll see. right now. >> we're looking. >> right now we're looking

overseas. >> we just think that the us. market is priced. >> to perfection. >> you heard a lot of that on friday. i think that all of those comments were valid. >> and one of the. >> challenges is that we just have too much growth priced in to the valuations that we still have. >> in the markets. >> if you look overseas. >> there. >> are so. >> many more. >> attractive opportunities. we're even. >> just a little bit of. >> growth would be an upside surprise. >> speaking of, let me get to your pick of the day. you actually have a pick for us from the overseas markets. >> yeah. >> so you know, we're. >> looking right. >> now at the at a way. >> to play germany. >> i think. >> right now the. >> outlook for. >> germany is very constructive. >> as i. >> said, any growth right now because it's. there's such these. >> are. >> very low priced valuation stocks. >> you know we're. >> looking at commerzbank. >> commerzbank is. >> an example of. >> you know sort. >> of many. >> banks that have. >> you know. >> opportunities that. >> you can get. >> in the. >> us market. you can. >> still get. >> in the us. >> market. >> you can get access to. and

you look at commerzbank. >> as an example. >> right now they're. >> fending off an. >> aggressive bid by unicredit. very attractive opportunity. and if they did. >> merge would become the jpmorgan. >> of europe. and i think. >> that there is. >> tremendous upside. >> from where they are right now. >> before we let you go, you know, i want to ask you about small caps. you were hitting this earlier. small caps moving up more than 10% off their 52 week high. how do you view that trade. it was a trump trade right after the election. how are you seeing it now? >> so i just see the small caps as a. >> canary in a coal mine. >> because a lot of the trump trade was really about additional growth, growth that would benefit smaller cap names, more domestic stocks. and the reality is, is that, you know, that trade got ahead of itself. and if you look at follow that overseas trade. >> you would. >> naturally go. >> from small. >> caps actually to, to large caps. >> i think that, you know. inflation going. >> where. it's going, interest

rates. staying as high as they are. none of that is great for growth. none of that is great for small cap companies. >> all right gina sanchez, we got to leave the conversation there. your pick for us today, commerce bank, one of the biggest lenders over in europe. thank you again. all right. that's going to do it for us here on worldwide exchange. thank you very much for watching. coming up we got squawk box. have a great day. >> good morning. germany's conservative party winning the general election defeating incumbent social democrats and a challenge from the far right party. but the far right party did very. >> well. >> finishing second for almost 20%. elon musk ordering federal employees to send in a list of their accomplishments last week. but getting pushback from from trump appointees. i'm ready. got up at 330 every. >> day. >> and i got. >> at it relentlessly. >> like. >> say what i did the week before. >> yeah, yeah, you can use the week before. >> got out relentlessly, just

like the pomp. >> i think is. >> on a day. musk explained the rationale for the. email overnight, and warren buffett's berkshire hathaway growing its cash pile to $334 billion. highlights from. buffett's annual letter straight ahead. it's monday, february 24th, 2025. squawk box begins right now. >> good morning everybody. >> welcome to squawk box right. >> here on cnbc. >> we're live from. >> the nasdaq. >> market site in times square. >> i'm becky. >> quick along with. >> joe kernan and. >> andrew ross sorkin. >> happy monday everybody. here we go again. >> with the. >> wild threesome. >> we are. >> back and. >> we're back together. >> yeah. let's take a look. >> at the us. >> equity futures. >> at this hour. you saw on friday the worst