moving interviews and stock picks. all new investing tools securely linked to your brokerage accounts. plus, cnbc global market news and analysis tailored to your holdings. become a smarter investor with the power of cnbc pro. go to cnbc.com now. >> two days. a 1300 point drop on the dow. the market's also losing all their gains. when we're talking about the s&p since the election in washington. mixed messages as president trump doubles down on his tariff agenda. while a cabinet member hints at a possible trade deal in the next 24 hours. and china goes it alone in the face of a trade war, giving a bullish outlook despite those u.s. tariffs. stock futures pointing to a higher open on this wednesday, march the 5th, 2025. and you're watching worldwide exchange right here on cnbc. good

morning. thanks so much for being here with us. i am frank holland. let's get you ready for the day ahead. we begin with a look at the major averages, all of them falling more than 1% yesterday. all the major indices now negative year to date. and also the s&p losing its post-election gains largely on tariff concerns. but take a look at this. futures are in the green right here seeing a bit of a bounce in the pre-market. so right now we're looking at the s&p up just about 50 points or so. look at the dow looking like it would open up more than 300 points higher. the nasdaq the best performer up just about 225 points over 1%. so this action after president trump, he addressed congress last night defending his tariffs, his trade policy and his economic agenda. >> the tariffs are not just about protecting. >> american jobs. >> they're about protecting the soul of our country. tariffs are. about making america rich again and. >> making america. great again. and it's happening, and.

>> it will happen rather quickly. >> there'll be. >> a little disturbance, but we're okay with that. >> so again, the president is saying he's okay with a little disturbance. but take a look at this. look at the leaders and the laggards in the pre-market right here. very close to the top of the list. we're seeing general motors those shares up about 5.5%. could it be again we talked about those mixed messages coming out of washington. possible hopes on a trade deal. we're going to talk to our market guest about that. huntington ingalls actually the best performer. those shares up over 11%, moderna, freeport-mcmoran and smurfit westrock, one of the biggest packaging companies in the world. those shares moving higher in the pre-market. we'll look at the other side of the coin, of course, the laggards in the s&p 500 taking a look. crowdstrike moving 8% lower. this is following earnings followed by henry rollins, conrad and xylem rounding out the bottom five. we're looking at the s&p 500 another stock to watch this morning. that's blackrock after moving moving higher this morning after a $23 billion deal to buy the ports by ports of the panama canal, a

move that was praised by president trump in his speech last night. take a look at blackrock shares. they are up about one and three quarters of 1% right now in the pre-market. also we'll look at the etfs they're tracking canada and mexico that are now facing 25% tariffs as well as china that's facing an additional 10% tariff. taking a look right now we're seeing in the premarket the mexican etf up about one and a third of a percent. the canadian etf also up nearly 1%. the chinese etf up about 1.25%. again, could these be moving higher on hopes of a possible trade deal. we are going to talk a lot more about that throughout the show. also look at the treasury market this morning. bond yields just ticking a bit higher right now. take a look at the benchmark coming in at 4.25, a few basis points higher than the level that we saw yesterday. again, we see a lot of people go to safety in the bond market. not all that surprising. see yields just tick up a bit right now. however, we look at the dollar right now we're seeing some downside moves actually moving lower week to date as we've seen tariffs put into effect. you see the downside moves on the on the greenback moving about one and a third

percent lower right now down about three quarters of 1%. and look at the energy markets as well. oil on a three day losing streak. taking a look right now we're seeing wti crude right now pulling back about 1.25%. you can see here for the week to date down 1.75%. the important thing here from a sentiment level wti crude falling well below 70 bucks a barrel right now trading at 67 about $0.40 a barrel okay. that is your setup. now we want to turn to capitol hill and the president's address to congress describing the first 43 days of his second term as the most successful in history, also noting his administration's unrelenting action, including a slashing the size of the federal government and imposing new tariffs. nbc news's alice barr joins us now from washington with much more. alice, good morning. good to see you. >> good morning frank. >> good to see you. >> president trump took some swipes at former president. >> biden and. >> congressional democrats who held up signs. >> some walked out. >> in protest. >> he also leaned into. >> culture war issues while declaring that with his far reaching agenda. america is

back. >> standing in the. >> u.s. capitol. >> where he was sworn into office just. six weeks ago. >> president trump, touting his administration's. >> rapid pace. >> of change. >> and we are just. getting started. >> defending his. >> new. tariffs on canada, mexico and china. >> tariffs are about. >> making america rich again. >> despite stock. >> market drops. >> amid concerns about a trade war. >> further hiking prices. >> there'll be. >> a little disturbance, but we're okay with that. it won't be much. >> he praised elon musk. >> he's working very hard. >> and the department of. government efficiency for slashing the size of. >> government. >> even as democratic lawmakers. invited fired federal workers. >> as. >> their guests for the speech. >> in the democratic. >> response, michigan senator. >> elissa slotkin. >> cast cuts to government. >> services as a. >> means to. >> deliver tax breaks. >> to. >> the wealthy. >> grocery and home prices are. >> going up. >> not down. >> and he hasn't laid. >> out. >> a.

>> credible plan to. >> deal. >> with either of those. >> any further. >> and texas democrat al. >> green was. >> escorted out after. vocally objecting to president trump. >> calling his. >> election victory. >> a mandate. >> on immigration. >> the president. >> asking congress. >> for more. >> funding for. >> mass deportations. >> and border. >> security. while needling. democrats who wanted. >> new legislation. >> to secure the border. >> it turned out that all we really needed was. >> a new. >> president. >> looking to. >> russia's war on ukraine, he announced ukrainian. >> president zelensky had reached. >> out following their oval office clash that led to a freeze. >> on military. >> aid to ukraine. >> i'm also working tirelessly. >> to end. >> the savage conflict in ukraine. >> in a sometimes. >> combative speech. >> president trump, promising to keep shaking up. >> the government. >> president trump. >> will not tour. >> the. >> country following his address, as presidents often do, though. >> he did. >> return to some. >> key. >> campaign trail promises, again calling. >> for no. >> tax on tips or.

>> overtime and no tax on social security. >> benefits for seniors. frank. >> our alice, thank you very much. alice barr live in dc. all right. president trump's trade war triggering another selloff on wall street yesterday. the dow shed more than 1300 points so far this week after yesterday's drop. and looking at the s&p it's now at its lowest level since november the 4th. the benchmark index has now wiped out all of its gains that it's seen since president trump's election win. with that, let's bring in john stoltzfus, chief investment strategist at oppenheimer asset management, and bill lee, chief economist at the milken institute. gentlemen, good morning. great to have you both here. >> good morning. it's great to be here. >> all right, john, if you don't mind, let's begin with you. looking at futures right now, we're seeing a bit of a rebound in the markets. we also noted earlier that we're seeing general motors shares up some other automakers u.s. automakers shares are up. what do you attribute that bounce to. do you believe is it likely the comments from howard lutnick yesterday that he thinks that there might be a compromise when it comes to tariffs? >> i think frank. >> most certainly. >> is expectations.

>> that there will. >> be something. >> forthcoming relatively. >> sooner than later. >> that will. >> be related. >> to canada. >> and mexico. automakers are a big. >> part of. >> the us. >> economy and an. important part in. >> terms of jobs. >> so i think the administration is. going to be working with both countries. i mean, the interdependency of these. of these industries. >> that are. >> involved in this, including shipbuilding, all of that very important to be dealt with. and we think the administration is working towards it. >> all right, john, i want to be clear. you think this bounce we're seeing in the pre market is attributed to that, even after the president's speech last night, where he talked about being unrelenting and seem to have a lot of conviction about all of his policy. >> i do. >> think so. >> and the reason for. >> that is i think the, i think the more. >> difficult areas. >> will likely be dealing. >> with china, with. >> europe and individual countries. >> around the world. >> that will be. more it. >> will. >> take more time.

>> in terms of. >> coming to agreements related to making a competitive stance for u.s. workers and u.s. >> businesses fair. >> than it has. >> been. >> in a long time. >> all right, bill, coming over to you. bill, you're a bit of a contrarian. you actually do not believe that these tariffs are inflationary. but i do have to ask you, after we heard from the target ceo yesterday saying that produce prices are likely going to increase as soon as this week, that's just one part of the economy. how do you how do you still hold on to this idea that they're not inflationary when you're when you're seeing a leading retailer tell you it's going to raise prices? >> well, let. >> me ask you. >> frank, if. >> you start. >> to raise the price. >> of something like peanuts, right, what are you going to do? well, you can eat less peanuts, but you're gonna have more cashews or. >> find other substitutes. and that. >> to me, is really the. >> basis of why. it's not inflationary. it changes relative prices, but the overall prices. >> as we've. >> seen from the first experience. >> of the trump. the trump administration. >> it only went up by. >> about a quarter point. percentage point of cpi. >> over a two year period. >> so people. >> do find ways of. >> getting around tariffs.

>> and finding other. >> things to consume that are. >> that that. get them the same kind of results. >> without having to consume the high price stuff. >> people adjust. >> and i. >> think. >> that's the thing that people forget. >> a lot of. economists when. >> they when you scratch. >> any economists. >> you talk about. >> trade wars and the terrible things that tariffs can do. but honestly, people are pretty smart and producers are very smart in finding substitutes. the market reaction you just talked about. >> gm and. >> automakers are saying, hey, this gives us an. >> opportunity to re. optimize our production, maybe shift. >> more production back to the united states. >> and more. >> importantly. >> get foreign. >> money to come. >> invest in the united. states to have. >> our suppliers. much more domestic and to rationalize our supply lines even better. >> all right. so to that point right now, we're looking at the automaker stocks right now in the premarket saying ford gm tesla all moving higher i believe stellantis was the best performer up over i believe about 5%. but it just went by for a second. so, bill, i do have to ask you. so if you're saying that people are smart and they just work around these

tariffs, then why don't we see a bounce today on a compromise if the tariffs aren't in fact inflationary and they're not as disruptive to the market as many people think, then wouldn't the idea of a compromise, wouldn't that just kind of be news but not impactful to the markets? and instead we're seeing a rebound. and john believes it's due to this idea that there's a compromise. >> well, frank. >> i think. >> the real reason why. >> the. >> markets are reacting is because. >> president trump. >> reminded everybody. >> that tariffs are. >> just one tool in a wide range of policies that he's being put in place, and people are not emphasizing enough the rest of the policies. >> he's going to. >> shrink. >> the size of government. >> he's going to deregulate. >> the economy. >> and to me. >> the most important thing he's going to. >> do. is to. >> get more. >> capital to come into the united states. even from china. he's told us that that his objective is to maximize. >> the employment. >> and income of american residents. and that is where the optimism is coming in. people are relieved. >> to. >> to, i think. >> to find. >> that we're back on the investment track again. we're going to deregulate, cut taxes. >> find other.

>> news sources other. >> than. >> income taxes. >> and. >> and really try to revive the economy in a way that that hasn't been done before. >> we've tried. >> chips act where we have direct subsidies, but tariffs are a. >> way. of packing. >> a punch that, that that subsidies don't. >> tariffs raise revenues. subsidies cost the government revenues. >> the subsidies, like. >> the chips. >> act. >> is something that. >> blows up the. >> government deficit. but tariffs are a way of giving. >> the same. >> kind of protection, encouraging people to come in and invest under the tariff barrier and at the same time raise revenues. so these i think are facets that that have not been talked about enough. >> so, bill, you actually believe that wall street and rest of the country are seeing optimism from the president's comments? but john, i want to come back over to you. i mean, we've seen gdp estimates lowered the atlanta fed's gdp. now, one, the a lot of people are citing going from 1.5% when we're talking about a qanon decline now down to 2.8%. and also we're getting stuff from jp morgan, their trading desk turning very bullish about u.s. equities. i want to ask you if there's optimism out there. where is it. because i'm not we're not

hearing it from traders. we're not seeing it from economic estimates. are you optimistic about the direction of this market despite the sell off? >> yeah. >> we are very. >> much optimistic about. >> where. >> the economy is going. i think what what is fairly well understood by business and many investors is the fact that this is. for once, in terms of the national debt, we're not kicking the can down the road, but. rather addressing it to an extent that has not been done by any administration either, either side of the aisle that we can recall in recent years. and in addition to that, that. this looking. >> for a better. >> competitive stance. >> to. >> the us. >> should not. >> only be. >> good for the us, but should. >> also be for. >> the trading. >> partners. >> in particular. >> in. >> the move. >> to. >> diversify away from one country centric. >> global supply chains. and the more countries you have involved, the more. you have

competition it will be. we could see a significant improvement in the global economy. i also think one thing that is understood by many people, and not necessarily what's coming out of the michigan and the conference board surveys, and some of that is just the way people feel when they go. >> to the supermarket. >> okay. >> it hurts. >> i know that i like to shop. >> it hurts. >> but my point is here. >> they realize. >> this. >> doesn't happen overnight, frank, and it needs to start. >> and the. >> the process is the most important part to get along and make corrections when mistakes are found. when a better way can can be found. >> all right, by the way, i want to correct myself. i said jpm is bullish. i meant to say bearish. i think john you understood in context, but i want to get a call from andrew tyler, the head. of the firm's global market intelligence team. but if you do want to call in, welcome to call john stoltzfus and bill lee. great to see you both. thank you both for your time and for your insight. >> thanks for having us. thanks, frank. >> all right. we got more to come here on worldwide exchange,

including two bullish calls and one healthcare stock. but first, we'll go live to china, where beijing just laid out a mixed economic agenda in the face of rising tariffs and spending. plus another retail warning sign following walmart and target lead lower. but first, after a two day stock slide, chip stocks are bouncing back and a very big way this morning. taking a look you see nvidia shares up 1.75%. broadcom up over 2% amd up nearly 1%. we have a very busy hour still ahead. world wide hour still ahead. world wide exchange returns. stay with us. (vo) explore the world the viking way from the quiet comfort of elegant small ships with no children and no casinos. we actually have reinvented ocean voyages, designing all-inclusive experiences for the thinking person. viking - voted world's best by both travel + leisure and condé nast traveler. learn more at viking.com.

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look good. >> welcome back to worldwide exchange. turning to china and stocks there, bouncing back in a very big way after a brief two day slide, adding what's already been a very strong few months for the region's major indexes. all this as beijing lays out a new economic agenda in the face of a global trade war. our eunice yoon joins us now with the very latest. eunice. >> thanks, frank. well, chinese policymakers unveiled an ambitious economic growth target for the year at the ongoing national people's congress, a very important political event which opened today. but the other targets revealed some of the concerns that the authorities have about president trump's tariffs, as well as the uncertainty that they will likely bring. so the gdp growth goal is set at around 5%. the inflation target was dropped to around 2%. so this is the lowest in more than 20 years. and an acknowledgment of the deflationary pressures that the economy has faced. the fiscal deficit to gdp was raised to

around 4%. this is the highest in three decades, suggesting greater stimulus. and the defense was hiked. this is the military budget to $245 billion. so that's up by 7.2% from last year. so in case you were wondering i was saying around for a reason. and that was really interesting because the authorities here put that word in to the targets to give themselves more flexibility when dealing with this very uncertain year of the premiere of the. chang, who laid out the economic blueprint, warned of what he said were changes unseen in a century and vowed to boost consumption as well as technology in order to safeguard the economic path forward. so to do that, the government has said that they're going to be setting aside more money to issue a special bonds to support the local governments as well. and this would then fund some of the

schemes that they have already, such as the expanded cash for clunkers scheme. but the a lot of the analysis, frank, has been that this still isn't going to be enough. morgan stanley today said the consumption stimulus steps were modest, and stockton says that the stimulus is still insufficient in their eyes to combat president trump's tariffs. >> all right. eunice yoon, thank you very much. eunice yoon live in beijing. let's get more on this story. we're going to bring in cnbc contributor derek mcneill. he's the managing director and senior policy analyst at longview global. good morning. always great to have you, especially during a week and a day like this. >> good morning frank. >> how are you. >> all right. so i'm looking at the target here. very ambitious target for china's economy for 2025. i want to ask you, what is the setting of that target? what does it say about the chinese government's optimism despite the trade war? and what does it does it give us a preview on what we should expect when it comes to government stimulus? >> well, i actually think i agree with eunice on this one.

this was. a pretty ambitious target. expect it though. i think analysts. >> have been expecting it to be around 5%. >> i think the. fiscal deficit spending being raised to around 4% is significant, frank. it says that. china expects that they will. >> need to have some powder to fight some of the trump tariff actions. >> so net. >> net, i think. >> this is. >> about what people expected. but it's still pretty bullish. >> for what. >> we think are still some significant. internal challenges that that china is facing. and we've. >> talked about all of those. >> last year. >> as well. >> as the. >> new external. challenges being. >> presented by the trump administration. >> if you. >> think about a venn diagram. >> here. >> frank, there's a lot of stuff. >> in the middle that. >> that overlaps. >> all right. so should we expect more a significant amount of more stimulus when it comes to china. and also does this give us a sense of how the state government and xi jinping, how they see private companies? we know he met with private companies just a few weeks ago, i believe, back on february the

17th. does that mean we should expect to see the government more cooperative with those private companies and even more output from those companies? >> yeah. >> first on the stimulus, frank. >> you know, you and i have had this conversation quite a bit. >> every single. >> time last year when we thought. >> xi jinping. >> would open up the spigot, sort of juice the stimulus. >> that did. >> not happen. >> i think. >> people were perhaps expecting to hear a little bit more at the national people's congress and. >> the. >> work report from lee chang. it didn't come, but it also left the door open given some of the. >> fiscal deficit spending. >> so i think they're keeping powder dry. >> they know they. >> may need this down the road. >> the private. >> sector though, frank, this is a very interesting. >> point you raise. look, i think. >> in order to really deal with. >> those external challenges. >> that we're talking about. >> that. >> that the trump. administration is posing, they're. >> going to have to. >> bring the private sector. >> in from the cold, frank. >> and, you know, we talked about trump unleashing the animal spirits here in the in the us. she will need to unleash

the animal spirits of the private sector in order to weather this onslaught that i think is coming. >> you know, we got to go, but can you just bottom line it for us really quick? does this make china more investable, less investable after this target? the same. we've seen a lot of big name investors be very bullish on china. >> yeah i certainly would not jump to the to the to the fact that it's investable. again a lot of the dynamics internal and external hasn't changed that much. i think the trajectory is going in the right direction. but you know i wouldn't i wouldn't. jump off the deep end. >> just yet. frank. >> well, we really appreciate your time and your insight. i think a lot of investors are going to listen to those words. thank you again. good to see you. >> thank you farai. >> all right. still on deck here. worldwide exchange. the white house reportedly set to cut more red tape for one of elon musk's companies. and access to a multi-billion dollar government contract. we're going government contract. we're going to talk about it right aft (♪♪) ♪ (slow down) ♪ (♪♪) cut!!!! i get it! slow motion. slow down geographic atrophy. but we don't need gimmicks.

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t. rowe price invest with confidence >> welcome back to worldwide exchange. time now for your big money movers. three big stock stories of the morning. we're going to start off with the wall street journal reporting that disney is planning to cut around 200 jobs at abc news and its disney entertainment networks. the journal says that announcement could come as soon as today. disney shares moving higher in the premarket, up almost 1%. those cuts mark the latest by disney as it makes increased investments in sports and entertainment for streaming. shares of crowdstrike are falling on the back of earnings. the cybersecurity software provider offering disappointing earnings guidance. shares down over 8%. crowdstrike adding it sees more costs ahead in the aftermath of last summer's

service outage. and shares of ross stores are raising a little steeper losses on the back of its latest results. shares right now are essentially flat, fractionally lower. ross is forecasting annual sales and profit below estimates. ross stores becoming the latest retailer suggesting a dip in consumer demand due to rising inflationary pressures. and as we head to break, we're watching shares of microsoft hitting their lowest level in more than a year and now more than 16% off the most recent 52 week high hit back in july. microsoft trading at just about $391 a share. but don't tell that to analysts covering the stock. the average price target as of this morning $509 a share. no sell ratings and 54 buy ratings. just some food for thought for you investors out there. stay with us. we'll be right back.

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used atari. >> to. >> buy and measure. >> tv ads. >> tariffs are not just about protecting american jobs. they're about. protecting the. soul of our country. tariffs are about making america rich again and making america great again. >> and it's happening. >> and it will happen rather quickly. there'll be a little disturbance. but we're okay with that. >> that was president trump in his address to congress last night, defending his decision to roll out tariffs on mexico, canada and china. the markets riding a two session sell off over those policies, with the s&p 500 now completely erasing

all of its post-election gains. welcome back to worldwide exchange i'm frank collin. coming up this half an hour. much more on the president's address and the signals from one administration official suggesting a potential compromise around some of those tariffs. but first, let's kick off the half an hour with a look at the markets, the major averages falling more than 1% yesterday. but take a look. right now you see the futures seeing a bounce back this morning. the s&p up just about 37 points. the dow looks like it would open almost 250 points higher. the nasdaq the best performer up just about 166 points right now. so with yesterday's slide the s&p is now wiped out all of its gains seen since president trump's election win. the dow is still positive. you see also the nasdaq almost 1% lower as well. so all this after president trump allies congress last night defending his tariffs, his trade policy and his economic agenda. we're going to talk much more about that in just a moment. but firs, we're taking a look at the nasdaq 100 premarket leaders taking a look at those names right now, microstrategy, those shares up about three and three quarters of 1%. marriott,

palantir, constellation energy and pdt holdings rounding out the top five. then we have the other side of the coin, the laggards, of course, taking a look at those crowdstrike right here at the bottom. those shares falling more than 7.5% following earnings. t-mobile, coca-cola, euro pacific partners, gilead sciences and starbucks. those names all falling lower in the premarket. also, a check of chip stocks, which have been hit hard during the selling. president trump also calling for an end to the chips act in his speech last night. take a look. nvidia shares up over 1.5%. intel. broadcom. advanced micro all of them moving higher. amd shares up three quarters of 1%. broadcom the best performer on the board. at least those shares up just about 2% right now. also checking in a number of automakers that have been hit hard caught in the crossfire of these u.s. mexico canada tariffs. you can see though they're up big this morning. ford shares up almost 2.5%. general motors shares up nearly 5.5%. stellantis shares up over 5.5%, perhaps moving higher on some worries from the commerce secretary. howard lutnick that a compromise could be on the way.

we're going to talk more about that with some of our guests. another stock to watch this morning. that is blackrock. those shares moving higher after a $23 billion deal to buy ports at the panama canal. it was a move praised by president trump in his speech last night. blackrock shares, as you can see, are up about one and three quarters of 1%. we also want to look at the etfs that are tracking tracking canada, mexico, canada and mexico that are facing 25% tariffs, and also china that's facing an additional 10% tariff. you see right here a bit of a bounce back when it comes to these names as well. the iww that tracks mexico up over one and three quarters of 1%. the iwc that tracks canada up nearly 1%. best performer the ncci that tracks china moving 2.25% higher. also, again, we're getting that chinese stimulus news this morning. perhaps another catalyst moving this etf higher. at least right now when you take a look at treasury bond yields just moving a tick higher a few basis points. the benchmark right now at 4.25, moving a few basis points higher than we saw in recent days. but keep in mind still about 50 basis points lower than its high so far year to date in 2025.

however, we're seeing downside moves when it comes to the dollar. dollar actually lower week to date as these tariffs have been put into effect. you see the dollar moves down 1.25% week to date. right now the dollar down just over a half a percent. and that's our setup for this morning. all right. turning back to the president trump's address to congress last night, laying out his agenda to reshape america. the president speaking for nearly two hours, the longest speech a president has ever delivered to congress, hitting on hot topics, including his tariffs. our eamon javers joins us now with more on the president's speech eamon good morning. good to see you. >> good morning frank. good to see you. >> the president. >> declared america. >> is back last night. >> and as you. >> mentioned it. >> was the longest. speech and. address to congress by a. >> president ever. >> beating out bill clinton's record. >> from. >> the year 2000. the president following on two sharp down. >> days on the dow in reaction. >> to his tariffs, though, defended the tariffs and said it's america's turn to use the tool. here's what he said. >> other countries have used tariffs against us for decades

and now it's. >> our turn. >> to start using. them against those other countries. on average, the european. >> union. >> china. >> brazil. >> india. >> mexico and canada. >> have you heard of them? >> and countless other nations charge us tremendously higher tariffs than we charge them. it's very unfair. >> the president. >> acknowledged there could be. >> some disruption as. >> a result. >> of his tariff policies. >> he asked. >> farmers in particular. >> to bear. >> with him. >> the tariffs will go on agricultural products. >> coming into america and. >> our our farmers starting on april 2nd. it may be a little bit. >> of an adjustment period. >> we had that. >> before when. >> i. made the. >> deal with china. >> $50 billion of purchases, and i said, just bear with me. and they did. they did probably have to. >> bear with me. >> again, and this will be. >> even better.

>> frank. >> it was a partizan. speech last night, and it drew a harsh partizan response from democrats, including texas congressman al green. take a look at this video of al green standing. >> up. >> very early on in the speech. >> waving his cane. >> at president trump. >> and denouncing. >> him. >> saying he doesn't. >> have. >> a mandate. >> at that point, the speaker of the house was forced to stand up and bring in the sergeant at arms staff to escort congressman. green out. >> of. >> the chamber. that has never happened before during a presidential address to congress. so democrats struggling to find a response here to trump, some choosing not to attend the. >> speech. >> some choosing to try to disrupt the speech. nonetheless, the president taking something of a victory lap here and meeting with robust cheers from republicans on the left hand side of the of the floor last night. >> eamon javers, thank you very much. eamon javers, the very latest from d.c. thank you again. let's now bring in ed mills, washington policy analyst at raymond james. ed, good morning. good to see you.

>> morning, frank. >> i just want to get your take on the president's speech. we noted how long it was. it was historically long, but just the content. one word that really kind of caught my ear when the president talked about being unrelenting when it came to his policy. >> yeah. i think the way i've been describing this to clients is that we had a speech that was a record length, with a lot of content that has potential market impacts. but frankly, there wasn't a lot that was terribly new about this. we rehashed a lot of the issues related to taxes on tariffs, on geopolitical risk. we got some new information about the chips and science act. we got a little bit of new information or updated information about ukraine. >> so a. >> lot of things to unpack here. but from a huge market moving position, it's really the tariff news overnight. and whether or not we're going to ease up on canada and mexico, that's really going to be driving the conversation today. >> so i want to be clear for the audience, are you referring to

the comments from howard lutnick that were actually before the president's speech, saying that a compromise could be on the way? do you think that's what's really leading to some of the bounce back in the market we're seeing right now, specifically automakers that have been hard hit? >> yeah. so the conversation that we've been having is that howard lutnick before the speech, and it seemed like after the speech somewhat confirmed this, that as early as this morning, we could have a change to that 25% tariff. what i've been telling folks at raymond james is prepare for a roller coaster ride as it relates to these tariffs that they're going to go on. they're going to come off, or they could get increased or decreased at any time, because trump and trump alone is the one who can do this. i do think the base case for me, as it relates to the china, canada, mexico tariffs is that it ultimately settles out at a certain number. are we going to see a 5 to 10% tariff on canada and mexico versus a 25% tariff? that seems more reasonable to me. and maybe there is going to be progress on border issues.

fentanyl. that really is an issue for the president. what else is a to be determined aspect of these negotiations? >> yeah, i want to be clear. we're just showing the graphic a second ago to the audience how essentially said he believes that trump is going to work something out with him. not a lot of details, but just work something out. i also want to go to the comments from the president when it comes to the chips act. so if you think howard lutnick comments are what's moving the general markets higher, why do you think we're seeing this big bounce back when it comes to chip? is that also on those comments, or is it his plan when it comes to chips as far as replacing the chips act with with a different proposal? >> frank. i would say that most of the bounce back in chips are because we could get some easing on tariffs. the chips act comments from last night was donald trump saying that it was terrible, that we should get rid of it, and to use those savings to get a pay down of the debt and the deficit. it's possible that you get some of that. there are some contracts that have already been written. there are some tax provisions in there that allow you to get really

nice tax credits. if you build a semiconductor plant here in the united states. i'm kind of skeptical those go away. new additional grants probably do not happen because of this reworking grants. i think that's actually a really interesting question, because we get questions of some of these chip makers that might look different today. intel others than when they first got the grant. tsmc has said that they're going to invest $100 billion in the united states, building out their plant in arizona. so to me, it's, you know, an interesting part of the conversation, but i don't think it's a fundamental change. it's more of donald trump doesn't like what the last administration did and the last administration did the chips and science act. so he doesn't like the chips and science act. >> i got to go. i do have one other quick question for you. when it comes to the tax cuts. people call them the trump tax cuts. where do you think do you think we're closer after that speech last night? it seems like these two parties are more divided than they ever have been before. >> well, republicans and

republicans alone are going to do these tax cuts. it is going to be done, i think, sooner rather than later. if they want to get this done by the end of may. they want to make it permanent. the trajectory right now is to do that. and i think that they are more likely than not to be successful. frank. >> all right. we got to leave the conversation there. it is always great to have you here. thank you very much. >> likewise. thank you. >> all right. coming up here on worldwide exchange, a potential hurdle for one of the bright spots in the markets with tariffs and president trump could mean for health care. strong start to the year. and our next guest top stock pick in that space. and as we head to break a check on app love and shares business insider reporting. it's in talks to sell its gaming unit, the triple dot studios, for around $900 million shares of applovin, up to about two and a third of a percent. stay with us. we'll be right back. >> hotel 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

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rich is living life your way. and having someone who can help you get there. the key to being rich is knowing what counts. >> welcome back to worldwide exchange. checking in on the early trade over in europe. a positive session across the board with germany's dax leading the gains. the dax up about 3.5% right now. german chancellor to be frederick merz has agreed on a deal with his likely coalition partner to inject billions in extra funding for defense and infrastructure investments. a number of industrial defense stocks seeing a big boost on that news. much more worldwide exchange coming up right after this break. stay with us. >> nothing stands still. not technology, not the market and not franklin templeton. we've been a firm in motion for over 75 years, always innovating.

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company using a novel cell immunotherapy platform to treat sepsis and osteoarthritis and other inflammatory diseases. both billion dollar market opportunities that could revolutionize the way we treat these diseases and live stock symbol onlv. >> welcome back to worldwide exchange. we have a news alert for you on merck. the wall street journal is reporting a patent battle involving a new version of its cancer drug. keytruda is threatening sales plans. keytruda is responsible for nearly half of merck's sales. the journal says the fight between the company and halozyme therapeutics involves a microsoft microscopic enzyme that allows the drug to be injected. take a look at shares of merck right now falling nearly a half a percent. all right, we'll stick with healthcare. and what's been one of the rare bright spots in the market since the start of this year. health care outperforming the s&p 500 and the mag seven by a wide margin. this despite fears of president trump's spending agenda and a global trade war that could hit the sector. joining me now ahead of the final day of the annual health care conference, lisa

thomas, deputy head of global research at td cowen. lisa, great to have you back on. >> great to see you, frank. >> all right. so thanks for giving us a sneak peek ahead of all the analysts notes that are about to come out. i first want to start off with how are drugmakers? how is this industry. how are they responding to some of these trump administration policies, specifically tariffs? >> sure. >> you know, one of the things that's really struck me at this conference, and it's been an amazing time to have access to the nearly 500 companies here, over 2000 investors, you get a wide range of perspectives. and from a company perspective, informa particularly, i would say what struck me is they really seem to be taking this in stride. their view is this administration said it was going to be disruptive. the administration is being disruptive. and they're trying to stay very close to the situation. they're very engaged with the administration. i think there's a very open dialog there. and so i would say first and foremost, they're tackling it by having a really open line of communication. and that

strikes me as very pragmatic and constructive. >> all right. so according to your notes that you sent us a lot of these companies, they see this new administration and the idea of less regulation as being an opportunity. but where is it opportunity? are there certain lines of drugs? is it about developing new drugs? is it about shortening the timeline to go from r&d to actual release? what's the opportunity here? >> yeah that's right. so particularly for early stage companies, as you know, biotech in particular i think timelines and bureaucratic burden in particular really are a focus. and it's an interesting time now because for the biotech industry, which of course is very, very tied to silicon valley, you know, there's now new avenues of dialog with this administration that arguably we haven't seen before. and so i think there is a sense that, you know, because there's an empathy for disruptive technology in this administration and what that can achieve. and then certainly, you know, the very doge themed, you know, breakthrough of, of bureaucracy

that that can also be applied to things like the clinical trial process and things like that. so can we optimize, you know, human health outcomes, but do it in a much. >> faster. >> cost effective way? so people are very focused on that here. >> so lisa, this is interesting. you say the healthcare industry, they're one of the few people, i guess everyone else was kind of shocked by the tariffs actually being released, but they were prepared for it. they were ready for it. but what about rfk as the hhs secretary? a lot of people saw it as a wild card. do they still see it that way now that he's been confirmed? >> well. >> i think, you know, six weeks. >> in this. world now. >> you know, feels like a decade. so i think, you know, that certainly has been well digested. and i think, as i say, there's a really direct dialog there. and from what i understand, i think those conversations have been really constructive. so for example, we heard from the ceo of pfizer earlier this week that their approach and i think this is very common across the major pharma players, is to really identify areas of overlapping interest. where can we work

together to a positive outcome. and so, you know, when you look at things like diabetes, when you look at things like oncology, you know, immunology, you know, those are areas where i think there is a lot of common interest. you know, chronic conditions. and i would say too, that i think the maha make america wealthy again movement is regarded as a big thematic within the administration that the health care industry can lean into, because that's what it's all about. >> you haven't seen the maga hats yet. haven't seen those quite yet. >> lisa, that's a great idea actually, for next year. >> lisa, you're giving us a sneak peek ahead of the notes. what are the top picks from the analysts from td cowen after this? health care or not? after i guess you guys still have one more day left. but coming out of the health care conference, give us just a quick rundown of the top picks. >> sure. well, listen, i think that our picks are really the same, right? i mean, i think that, you know, this is not a time to be or it's very difficult time to be a short term investor. so we're really looking at long term trends around innovation in major pharma. we continue to support

abbvie, who will be speaking. >> at the conference. >> today in particular. you know, they are very resilient. >> when. >> it comes to patent expirations. they're very, very strong in terms of their patent portfolio, which we really like, and they have a great history of at least meeting. and often exceeding expectations. so we really like that. and major pharma. and on the smaller cap side, we recently initiated coverage of certara, which is a player in ai enabled drug discovery. and we really like that because that's going to be a big theme. >> lisa, we got to leave the conversation there. thank you very much for giving us, you know, a little sneak peek before those notes come out. always great to see you. thank you so much. >> great to see you, frank. take care. >> bye bye. >> all right. coming up here on worldwide exchange. our next guest says stands out and is her top pick for the trading day ahead. we're going to reveal that name coming up right after this break. stay with us. >> buying a car is kind of a big deal, but you use. the cargurus app. that's a price drop alert. so the deals come to you. oops.

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com. >> the day's top stories driving wall street. brian sullivan. joins kelly evans power lunch weekdays, two eastern. cnbc.

>> private credit is really aimed at five states. we have vast swaths of this economy that have been underserved, almost abandoned. so my view is let's lend in 50 states. we are looking to do our part at lafayette square. our ambition is to bend capitalism in the direction of being good for working class people. and it's personal for me. my dad is a bus driver. my mom's a 40 year veteran of the federal government. it's a huge bet on america. passion matters. >> welcome back to worldwide exchange. stocks coming off back to back. steep losses on trump tariff fears. but take a look at futures. right now you can see they're in the green across the board. for more on the trade ahead let's bring in victoria greene, founding partner and chief investment officer at g squared private wealth, also a cnbc contributor. vicki good morning. good to see you. >> good morning frank. >> all right vicki, let's start with your word of the day. >> it's deglobalization. >> and i think. >> this. >> might be the word of the. year actually, because as we

throw. >> up more and more. >> barriers, we've got tariffs and we're starting to see a little bit more protectionism across the globe. not just what we're doing, but what other countries are going to do. this is going to have a huge impact on corporate profits. wall street made a fortune over the last 50 years as the world expanded into the. >> globe. >> opened up. >> to us investment. >> this trend might be shifting back. and so for us, if we're seeing these decade long trends from lower tariffs and bigger free trade and all of these new markets opening up to potentially now we're. shifting to more barriers, more taxes, more tariffs and markets potentially closing or becoming less favorable to us investment. it's a huge trend we need to watch for. and the us multinational space, you know, companies like pepsi, netflix, all these guys make. >> almost 50%. >> of their revenues overseas. so for us, this. >> shift. >> is one that started years ago, accelerated during covid. and now you really are seeing seeing it potentially accelerate further this year with trump policies. and it's one we really have to understand what this impact on corporate earnings may be and what this means for us large national companies. >> yeah, we have seen earnings

estimates revise to the downside. i want to ask about the action we're seeing in the premarket. right now. we're just showing the pre-market moves. i'm seeing a bit of a bounce. what do you attribute that to. we saw some other guests say a lot of that is due to howard lutnick, the commerce secretary, saying that the president and mexico and canada are going to reach some type of deal. >> yeah. it's who do. >> you believe? is it letnik or trump? you know, trump. last night said nothing about that. >> he said there may be a. >> little bit of difficulties. >> coming up. and letnik isn't saying there's going to be a pause if you read through his whole comments. he talked about, oh, we're going. >> to find a deal. >> i don't see tariffs being walked back. i think the market is still going to have to recalibrate to tariffs being a lasting revenue source, which trump alluded to last night. we're going to make america rich again. we're really going to hammer on these tariffs i don't see necessarily these becoming like like very soft tariffs. so while lutnick gave a little bit of a push and we are seeing the trump put in the market here. you know that 5212 was pre election day. and so right now that 50 or 5712 was pre election day. so the trump put is holding. but i'm not sure. let my comments override what trump said last night. so i'm a little

worried we're going to see that normal afternoon fade today. >> all right. we're almost out of time. but we want to get to your pick. it's one actually we were just talking about earlier in the show. >> yeah it's all at b day. i mean it's the top quality pick in health care. it's got a wonderful portfolio in auto immune and psoriasis treatment. they're just getting into now weight loss. but they're targeting weight loss with a different gut hormone not glp one. they're targeting ammolite. so for me i love this portfolio. it's not just about humira. they have two new workhorses that they think are going to be 27 billion in growth. they have sustainable growth. dividend growth 3.17% yield i love this stock. and as we talked about health right now is a great defensive sector to hide in. so i think investors should really be looking at abbvie. and now it's the abbvie day to day. we're all talking. >> about it. >> we got to go. but i want to another question is valuation also a factor here. because a couple weeks ago everybody got religion about valuation. is that still the case right now. >> i think valuations backseat to macro i think right now everybody likes a little certainty on what tariffs are going to be. and then we'll get a worried about. valuations again. but in maslow's hierarchy of worries this morning i think

we all want to know how serious are we about potentially walking back tariffs. is it or is it trump. you know who's going to rally the day to day. and i'm a little worried it's going to be trump and hardcore tariffs. >> all right vicky we got to leave the conversation there vicky green your pick for today is abbvie. always great to see you. all right. that's gonna do it for worldwide exchange. taking a look at futures higher but off of their highs of earlier today. squawk box starts right now. >> good morning. futures pointing to a rebound on wall street following an extreme bout of volatility. we are coming off some pretty wild swings in all the major averages, driven in part by uncertainty over us tariff policy. president trump acknowledging americans may feel some pain from his trade moves, but in an address to congress, he said it would be worth it in the long run. we'll get a look at this morning with the jobs picture. during trump's first full month in office, february adp data is out at 8:15 a.m. eastern time. it is wednesday, march 5th, 2025. and squawk box

begins right now. >> good morning and welcome to squawk box here. on cnbc live from the nasdaq market site in times square. i'm mike santoli. >> along. >> with becky quick and robert frank. joe and andrew are off today. plenty to get to. us equity futures at this hour. yes. still looking for a bounce. s&p 500 up a little more than half a percent. let's say 6/10 of 1%. the nasdaq looks a bit stronger up 160 points at this hour. the dow indicated higher by 246 yesterday. an extremely choppy day of trading. the nasdaq swung 3.4% from its highest level of the day to its lowest. it was a pretty big sell off. then a very strong rebound. the s&pwu