Player. And ferrari is brushing off the chill of the 2020 crypto winter. It is monday, october 16th, 2023. You are watching Worldwide Exchange here on cnbc. Good morning. Welcome to Worldwide Exchange. Im frank holland. Lets get you ready for the trading week. We check on the u. S. Stock futures with the s p riding a twoweek win streak. Futures are in the green across the board. Dow would open up 90 points higher. S p up. 25 . The nasdaq is up the nasdaq is up 1. 5 for the week. You see the down turn from the down day we were just talking about. It closed down more than 1 on friday. We are checking the bond mrarke. We start with the 10year treasury. Yield is 4. 68. Off the high of 4. 80 this month. Down 20 basis points. Important to know the 2year treasury is above 5 . Trading at the highest level since 2007. The 30year treasury is trading at the highest since 2010. This is a read on Inflation Expectations and Investor Confidence. It is not just treasuries. Investors are looking at gold. Looking at the best day of the year on friday. Right now, you see it is down in the premarket. Down 1 . The month is up 3 . You see the jump on friday there. Last, but not least, oil coming off the best day since april. Wti trading at 87. 37 a barrel. Brent crude down. 50 . Natural gas is hardest hit this morning down over 2 . Thats the set up for the u. S. Markets. Let us see how europe is trading with Joumanna Bercetche in our london newsroom. Good morning, frank. Riskoff sentiment is prevailing. You see it clearly with the asian markets. The knenikkei is down 2 . Taking the cue from the nasdaq on friday. We saw big declines in the tech stocks within the nikkei copping under pressure. Hang seng against the nikkei is not as bad. Still down 1 . The shanghai composite pulling back the gains from early in the session. Negative across the board as a hand over to european markets. In the last half hour, you see within europe, we have started to tip more positive. The ftse 100 in the uk is up. 10 . Here is where it is being led by oil and energy names with bp and shell. Glencore is seeing positivity within that commodity space. In europe, the dax is down. 20 . Cac 40 is down similar. A focus on the vaccinemakers. Biontech is in focus after pfizer issued a warning about guidance for the sales of vaccines for the second half of the year. This is having a knockon effect for that market as healthcare is pulled lower today. Joumanna, thank you very much. Joumanna bercetche live in the london newsroom. Time for the check of the corporate stories with Bertha Coombs. Good morning, frank. Ill pick up where joumanna left off. Shares of pfizer are under pressure ahead of the open. The company is slashing future year sales and Earnings Guidance blaming falling covid product de demand. Pfizer expect sales to come in about 68 billion. Pfizer is warning dragging down industry peers with moderna and novavax. Pfizer has an investor calling this morning. Sticking with healthcare, rite aid is filing for bankruptcy. Not a surprise at this stage. The company is in the process of obtaining 3. 5 billion of new financing. It is also saying that it has secured a restructuring deal with the major bond holders. Rite aid has 3 billion of outstanding debt and market cap below 100 million. Shares of lululemon are popping on news that it is set to join the s p 500. Stocks will replace acti activisionblizzard now the regulator signed off on the 69 billion deal by microsoft. Given that lululemon pants have become a uniform for a lot of folks on wall street, frank, it is apt for them to join. Stock up big right now, bertha. A lot of colleagues wear lululemon. Bertha coombs, see you later on. Turning attention now to washington, d. C. And House Republicans getting back to work to try to unify and elect a new House Speaker. Brie jackson joins me now. Brie, it was two weeks since Kevin Mccarthy was sent packing. Frank, Congress Starts another week without an elected peeker in the house. They are expected to hold meetings on capitol hill tonight. We could see a vote for House Speaker on tuesday according to the House Democratic who says republicans are planning to hold the election tomorrow at noon. However, it is still unclear if the gop nominee jim jordan has rallied enough support to get the 217 votes he needs to secure the job. When he was nominated on friday, more than 50 members of his party said that they would not support him. House minority leader Hakeem Jeffries said talks have been going on to find bipartisan solution debates to the speaker fight. He says democrats want to see rule changes in the house as part of the potential deal. However, jeffries also said that democrats had not yet identified any specific republican that the democrats would back. The pressure is on for the house to select a speaker as federal funding expires in november. There is a risk of a Government Shutdown that could happen. A lot of talk about this in d. C. As a matter of fact, the leader on the democratic side, Hakeem Jeffries, on meet the press yesterday talking about this. Any sense how the democrats may play a part in the discussions if at all . It comes down to whether or not a deal can be made. Hakeem jeffries talked about a potential deal. He talked about possibly being rule changes. He says priorities are key to democrats and he wants to make sure those get a vote and he wants to make sure that maga extremists dont have such a large say in what happens in the house. Hakeem jeffries has made it clear that this is not necessarily on the hands of republicans, but democrats have to unite behind the leader of the party. We will continue to watch all of the developments in d. C. Brie jackson, thank you very much. We have more to come here on Worldwide Exchange, including the one word investors need to know. We have an exclusive interview with janet yellen coming up. Why investors may want to look past the big banks and tech earnings as earnings season rolls on. And later, following ev demand shortfall. We have a very busy hour when Worldwide Exchange returns. Stay with us. I promise as an independent advisor to put the Financial Wellbeing of you and your family first. I promise to serve, not sell. I promise our relationship will be one of partnership and trust. I am a fiduciary, not just some of the time, but all of the time. Charles schwab is proud to support the independent Financial Advisors who are passionately dedicated to helping people achieve their financial goals. Visit findyourindependentadvisor. Com welcome back to Worldwide Exchange. We are turning back to the developing story. The war in the middle east. The Border Crossing between gaza and egypt is open for humanitarian aid and evacuation of foreign nationals. This as the u. S. Military steps up support for israel. President biden warning on 60 minutes last night he is looking to avoid the conflict spreading ybeyond gaza. We have Nbcs Jay Gray with the latest. Reporter frank, we are in an open air market in tel aviv. This would normally be teeming with people. Overnight, the iron dome doing its job protecting the city from several aerial assaults and people here on edge and some of the shops open and not doing much business as you can see. If you look across here, some vendors say it is not worth opening up. They are not putting out their wares and not doing anything. They know the families that normally fill the market midday on a monday, are not going to be here. Again, what you heard from locals is traditionally this area, monday through thursday, is packed with people and tough to get around. It has been slow since the war began. Our jay gray live in tel aviv. Jay, thank you very much. It is not just middle east t tensions, but more than half a dozen central bankers are set to give speeches this week. This is on the back of the fed comments of another rate hike being less likely. This as the rates poll rate at 99 . Lets bring in janet moi head of rbc. Good morning, frank. The consensus on wall street is there is not a rate hike in the next meeting when the fed meets in 16 days. Do aweyou agree with the assessment . I think there is a high chance the fed will not move because from the recent stage, they are concerned about the rise in yields right now and also inflation is moving in the right direction. I think it is worth being patient. Of course, we cannot rule out of the potential of the rate hike. So far, they have guided the market. We have to wait and see. We are close to the end of the rate hiking cycle in the u. S. And other major central banks. You think we are close to the end of the rate hiking cycle. You are looking at the inflation reports in the u. S. Cpi and ppi pointing higher. That is having you invest in treasury and inflation treasuries. Why is that more attractive . Because of the recent sharp move in yields. We added that to the government bonds and global inflation bonds. The yields have risen to the highest level since the financial crisis. We think it is attractive. The u. S. Level is high and on the relative basis against the uk is a tttractiveattractive. Inflation expectation is picking up. We saw from the university of Michigan ConsumerConfidence Survey that expectations have picked up in the near term and longterm measure. With the Higher Oil Prices and low volatility in the energy market, we think there could be potential for higher inflation expectation. We find it more attractive in that environment sdp. You think oil prices will move higher. Is that because of geopolitical tensions or some other reason . I think the constraint in supply which would push up oil prices. The extra layer of the geopolitical risk is also a concern. We dont think we are back to the 1970 environment. The risk is the Higher Oil Price with the potential escalation. Many officials are trying to diplomatically deescalate the situation. Janet mui, thank you very much. Coming up here on Worldwide Exchange, why winter may not be coming with i. T. Spending. We have the look at the 2024 forecast next. Stay with us. Meet gold bond daily healing. A powerhouse lotion that moisturizes, heals, and smooths dry skin. With 7 moisturizers 3 vitamins. And. New gold bond healing sensitive. Clinically shown to heal moisturize dry, sensitive skin. Gold bond. sfx stone wheel crafting the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. It still does. What can you do with spy . Is it possible to fall in love with your home. Before you even step inside . Discover the Magnolia Home james hardie collection. Available now in siding colors, styles and textures. Curated by joanna gaines. Welcome back to Worldwide Exchange. This year, gartner is out with the i. T. Spending forecast and the fears of the recession next year and rampant inflation. John lovelock is joining me now with a look at the report. John, great to have you here. Frank, great to be here. Good to see you. I know you will unveil this to 8,000 cios and i. T. Professionals later today. Glad to get this look. Global i. T. Spending is crossing the 5 trillion mark for the first time. How big of a factor is a. I. In this spending and higher for longer impacts the sector . We are in a conflated situation right now geop geopolitically and inflation is high. That is not impacting i. T. Spending. We have seen i. T. Spending which is recession proof. We have seen it in brazil, argentina which is still growing i. T. We crossed the 5 trillion barrier. We will add 2 trillion worth of i. T. Spending in the next four years. A. I. Is part of that. Total spending on a. I. Will cross 3 trillion between now and 2027. It is a big portion of whats going forward. There are many other factors driving it. A number of other factors. I want to stick with the a. I. Them. It is a big part of what is going on. Data Center Growth is doubling year over year. That is part of the a. I. Push. Software is 1 trillion area of spending which is seeing double digit growth. How much of this is a. I. For data centers or workloads moving away from servers to data centers . Spending skewed toward cloud. We are still spending on servers and Network Equipment to keep the onprem environments to where they are now. New spend skews toward cloud. Security tends toward cloud. Cybersecurity . Im sorry. Cybersecurity . Yes. Cybersecurity. The situation spending is going on does tend to start in the cloud environment and now more than the onprem environment. We are trying to get security outside of the four walls before it gets to the systems. A. I. Has added eye new level of concern with security as something that could aid hackers at our data. Cios are more interested in security and security spending and getting it to new areas to ensure the systems are wrapped before hackers get near sensitive data. We saw a device spend and is a. I. Changing what we need . I heard a number of ceos of dell and hp saying a. I. Will transform the pc experience. It will transform the experience, but it is not necessarily going to transform devices. Inflation is hardest hit on consumer purchasing power. As consumers lost purchasing power, they deferred away from tech. We had a couple of years of decline. Next year is our first year ramping back up which is great, but we dont get back to 2021 spe spending levels until 2027. Devices wont change much for a. I. It will get more powerful. More features added. Nothing right now is driving consumers or enterprises to reinvest in devices. In fact, we were able to hold them for longer which has kept the Device Market depressed. One of the few line items in the spending forecast that is not building up growth. Thank you for the sneak peek. The gartner symposium coming up later today. John, thank you. Have a great day. You, too, frank. Coming up on Worldwide Exchange, we have an exclusive with janet yellen. If you havent already, follow our podcast. If you miss Worldwide Exchange check us out on your favorite podcast app. More wex coming up after this. when the day that lies ahead of me seems impossible to face a lovely day lovely day lovely day lovely day a bank that knows your business grows your business. Bmo. It is 5 30 a. M. In the new york city area. There is more ahead on Worldwide Exchange. Stocks are looking to keep up momentum after the s p notches the second straight week of gains. Futures are suggesting a higher start to the trading week. Also, treasury secretary janet yellen out with fresh comments this morning. Her remarks in a moment. A reported proxy battle taking shape at news corp. It is monday, october 16th, 2023. You are watching Worldwide Exchange here on cnbc. Good morning. Welcome back to Worldwide Exchange. Im frank holland. We pick up the half hour with the check on the u. S. Stock futures. The dow is where it was earlier today. Looking like it would open up about 95 points higher right now. In general, a strong start to the morning. As always, it is early. Taking a look at the bond market, we begin with the 10year treasury at 4. 68. Down from the high of earlier this month. Taking a look at the 2year treasury trading at the highest level since 2007. Back above 5 . 30year treasury is trading at the highest level since 2010. This is the read on Investor Confidence and inflation expectation. We are looking at oil. The wti at 87. 56. Brent down. 30 . Wti coming off the best week since september with brent seeing the biggest weekly gain since february. All three are in a decline. Time to get a check on the top corporate stories with Bertha Coombs who is back with those. Thank you, frank. Ford is temporarily cutting shifts at its plant in michigan where it is building the electric f150 lightning pickup truck. Wall street journal is citing Union Officials who say ford is considering cancelling the shifts due to slow in demand for evs. They are looking to build more gaspowered trucks. Fords says the cuts are linked to several issues including supply chain problems and not related to the uaw strike. It hasnt said how long the cuts will last. It accounts for 2 of all sales. Albemarle is scrapping a 4 billion deal of lithium miner liontown. The deal became more difficult after the australian billionaire announced her firm had built a nearly 20 stake in liontown. Albemarles decision comes after it asked for an extra week to look at liontowns books. And Starboard Value builds a stake in news corp. Starboard plans to push for changes which include spinning off the online real estate unit and doing away with the companys dual class share structure. That gives the murdock family voting power in news corp. Frank. Bertha, thank you. Shares are up fractionally this morning. Turning attention back to earnings. Big banks are making headlines, but when it comes to market influence, it is all about big tech and the magnificent seven accounting for 30 of the s p 36. 2 trillion market cap. The groups earnings outlook is better than the broader market, but the wall of worry is daunting. Rising rates causing investors concerns and casting a big shadow. It all starts with netflix and tesla both reporting this week. Joining me now is stefan lewanski. Thank you for having me here. Amazon, microsoft and google. You have new ratings and price targets. What is your top pick . Frank, we have alphabet and amazon all with the September Quarter results. Our top pick is alphabet. Stocks have done well. Microsoft up 35 . Amazon is up 50 . Alphabet is up 55 . Alphabet has reasonable. You are trading 18 times pe forward x cash. That is the type pick. What is the price target . 163. You see it is seeing more upside. What is the catalyst . One thing about the three companies is the leaders with the cloud computing. Aws, amazon has 36 . Microsoft with azure at 22 . Google cloud with 22 of the public cloud. What is the catalyst for google to move higher . Google has a couple of things. Results are next week. We are 2 ahead of consensus for revenue for the q2 results. That is driven by the core advertising business. We expect a 1 beat. Secondly, that other business which we all talk about is youtube premium and youtube tv. We had price uncrekrees increas. We think they could beat by 10 . You have one month of the sunday ticket and then google cloud which is the Enterprise Cloud computing business. We expect a 2 beat there. Were 4 to 7 ahead of consensus. We see the winning share against aws and microsoft azure. You almost buried the lead there. I want to look at earnings season. Netflix is reporting this week. Netflix is a mega cap tech stock. Not inn ffluenced by a. I. Do you see itt having a big i infl influence . I dont cover netflix. For big tech earnings, numbers will be good. We continue to see demand as stable and it is not improving. It is not deteriorating. Im not sure it is good enough. Q4 is all about 2024. That is what investors are looking at for next year. Companies will hedge their bets for next year. We may not get that confidence about next year that investors are looking for just yet. I want to talk about next year. A lot of concerns about a possible recession again. They went away and now they have come back. Give us a sense with Tech Companies spending more and when we started the company, it was a year of efficiency. Is that over . What are investors focused on . A. I. Centered growth or efficiency . You are right. Q1 was efficiency. Q2 was gen a. I. Q3 is digestion. So q4 is going to be about 2024 and that outlook. Some Companies Like nvidia or microsoft with 365 copilot becoming available on november 1st are early beneficiaries. The market is trying to see who is going to be next and how long until we get the returns. You mentioned a broad universe of tech stocks. You have been to a lot of c confe conferences. We are in a higher for longer environment. A lot of concerns of the 10year treasury hitting 5 . Which is most vulnerable . One of the names we turned cautious on is microsoft. I travel across the u. S. And europe and middle east and talking to large investors and it remains the number one position in investors portfolios. Close to 10 . With the investments microsoft is making, you have a 2. 5 to 3 Free Cash Flow yield right now. Not to be depressed. You are not quite getting the returns from the investments. For Global Investors who have other options, they are looking at that twoyear option and saying do i want that or microsoft . Great to have you here. Philly guy. Thats right. Thank you. Turning attention now overseas. Janet yellen is in lux embourg this morning and meeting with her counterparts. She is discussing higher rates and geopolitical tensions in the middle east. Wilfred frost is joining me now with much more. Wilf, good morning. Reporter good morning, frank. As you said, janet yellen, the treasury secretary, is here for the economic and Financial Affairs forum. I asked her where americas support for israel was conditional in any way given the humanitarian crisis in gaza. She said america stands by israel period. She says the u. S. Could absolutely afford to support two foreign wars. Referring to ukraine as well as the situation in israel. As it relates to the latest war in the middle east, she is having on the Global Economy. We are looking at the economic potential implications of the hostilities here although our main thoughts are with the israeli feel for what they suffered. I think it is too early to speculate on whether or not there will be significant consequences. I think, importantly, it depends on whether the hostilities extend beyond israel and gaza and that is certainly an outcome we would like to avoid. Are you and the Treasury Department preparing for that eventuality and what it might do to the Global Economy if the conflict broadens out . I think it is very early days and we are monitoring the situation at this point. In terms of what this all means, the famed investor on cnbc this week said this is the most threatening and challenging geopolitical environment i have seen. At the same time, the u. S. Is in the weakest fiscal position since world war ii. Can america or can the west afford another war at this time . I think the answer is absolutely. America can certainly afford to stand with israel and support israels military needs and we also can and must support ukraine in its struggle against russia. Look, the American Economy is doing extremely well. Inflation has been high and it has been a concern to households. It has come down considerably at the same time we have about the strongest labor market we have seen in 50 years with 3. 8 unemployment. Reporter perhaps optimistically in the mediumtolong term Global Economy and referring to the strained relationship with the u. S. And china, secretary yellen said perhaps the flaw in that relationship was now in. We have improved communication. We set out clearly both to americans and to the chinese a set of principles that we see as governing our relationship and they are essentially these, that first of all, we will always protect our National Security and take a stand against human rights abuses, that is non nece nonnegotiable. Our objective is not to harm progress in china. It is oriented at National Security. We will try to design our interventions of things like export controls and narrowly to keep them focused on real National Security concerns. Second, we are not attempting to decouple from china. We have a deep economic relationship and that kind of competition, trade and investment, is beneficial to both sides. We want an environment in which it can continue. Reporter frank, the secretary is now inside at the economic and Financial Affairs forum. She is due to give public remarks at 8 00 a. M. Eastern time. Wilf, i want to ask about one thing. Turning back to the israel and hamas war. Did the secretary address the possibility of iran getting involved in this conflict . Reporter yes, we did also speak about that story over the weekend that was reported according to cbs news that the u. S. Pressured qatar not to release 6 billion that is due to iran in relation to potentially supporting hamas with its attacks. She would not be drawn specifically if the u. S. Was involved on that. She said absolutely no funding in the shortterm would be released to iran. It is not quite her brief to go broader than that. It is a hint that the money is not released for a specific reason. Wilf, great to see you. Former Worldwide Exchange anchor. Great to have you back on the show. Reporter my pleasure. Coming up, shifting sentiment for stocks. The neame our next guest says could have upside when Worldwide Exchange continues. Stay with us. With gold bond. You can age on your own terms. Retinol overnight means. The smoothing benefits of retinol. Are now for your whole body. Plus, fastworking crepe corrector diminishes wrinkled skin in just two days. Gold bond. Champion your skin. Welcome back to Worldwide Exchange. Defense stocks are a big market winner last week. The ishares posting the best week of the year. Up 4. 5 . The biggest gainers were Lockheed Martin and kratos defense and northrop. Rising geopolitical tensions can increase military spending which can help stocks. There is uncertainty if these will have staying power and if congress can pass a budget before the month runs out. Lets talk this out with ken from rbc capital markets. Thank you. Lets start with the last question first. We got the news of the conflict between israel and hamas. Is all that priced in now or do you see more gains for the sector . I see more gains for the sector coming up. A couple of points. Geopolitical tensions are on the rise which tends to be a t tailwind for the stocks. I think we are in early innings which is restocking effort for people in the United States which is a nice tailwind. Third, these companies have struggled the last several quarters. If we get visibility on enhancement, that could be a nice tailwind for sentiment. Something to watch. Tomorrow, Lockheed Martin reports earnings before the bell. What are you expecting . Are the numbers important or the comments important . When these reports were made, there was not a war in the middle east. What are you picexpecting . Im not expecting commentary to reflect the war in the middle east and recent activity. I expect the comments to be important because you think about 2024 in particular. Lockheed, the First Defense company out and expectations are relatively low with the flat topline assumptions into the quarter. Comments are appropriate. We went with the events in the middle east and major focus on the Third Quarter and what we see around top line margins for the companies to a broader view. We will start to get comment tcommentary and beyond for 2024. Do you have a toip pp pick ie sector . We like l3 harris. This is a company that is a showme stock here. The company has seen significant margin compression because of supply chain and timing and a number of other irssues. We think the stock trades at a discount to the peers. The sector is trading in line with the move last week with historical average relative to the market. We are seeing rerating. This stock has more to go. They closed the large acquisition for rocketdyme. We think they offer the better top line opportunities the next couple of years relative to their peers. Something to watch. Lockheed reports before the bell tomorrow. Thank you. Coming up on Worldwide Exchange, the one word that every investor needs to know today, plus our next guest is big on this buyiopharma stock. Well have more when wex continues after this break. Stay with us. Welcome back to Worldwide Exchange. Shares of pfizer are under pressure ahead of the open after slashing the full year sales. Pfizer is warning this is dragging down moderna and novavax. Dira different story for lululemon. The stock will replace activisionblizzard now microsoft signed off on the 69 billion deal. And china is stepping up to boost the struggling economy. The peoples bank of china injecting 39 billion in liquidity. Ferrari rervealing it will accept cryptocurrency as payment in the u. S. Shares of Manchester United hit ahead of the open on reports that qatars jassim will not pay more than 6 billion dollars. Ratcliffe remains the only bidder. And last, but not least, the swifties have spoken. The eras tour concert film pulling in 126 million globally in the opening weekend. We have a busy week on tap with a key focus on earnings. We get results from bank of america and Goldman Sachs reporting with morgan stanley. We also have p g and American Airlines and American Express reporting this week. Lets get a quick look at futures which are solidly in green. The dow moving to the highest level of the morning. It could open up more than 100 points higher. Lets bring in degas wright from decatur capital. Degas, great to have you here. Good morning, frank. Great to be with you. Lets get a sense of how you see the day ahead. We have geopolitical tensions and higher for longer rates. Rate now, traders are pricing in a 99 chance of no hike at the next meeting. You jumble that all together and how does that make you think of the day ahead . What it makes me think of is focus on the expectations. That will drive stock prices. The fed has eased or paused and that is what we expect because all of the data is coming out. We have retail sales and you have Housing Starts and jobless claims. There is a lot of data. However, the sticky cpi price is still above target. We are seeing that we need additional hikes in the future to get that sticky cpi price down. I know you are looking ahead at earnings. You are bullish on healthcare. We have a warning from pfizer. Does thesis . It does not. If you look at the announcement with pfizer, that was tied to the covid vaccines. If you look at abbott labs, those companies are tied to the vaccine around covid have actually underperformed. We like the companies not focused on that such as viva systems and vertex. I want to talk about it. I want to get to the mystery chart. It is vertex. It trades at 23 times forward earnings. Why are you bullish in this environment . The reason why were bullish on this name is it is the leading manufacturing of the treatment for cystic fibrosis. It also has the development for sickle cell treatment and diabetes and also chronic pain. We like this because it has a top future performance as well as the profitability. It has a 27 roeturn on invest o capital. Something a lot more investors are paying attention to in the higher for longer vie environment. Your other picks are veeva which is 43 times forward earnings. How do you see the higher rate environment and valuing stocks as wise picks for right now . We have focusing on expectation of earnings and revenue and also profitability. If you look at veeva systems, it is focused on providing the Cloudbased Software solutions for the life science industry to do Development Phase and commercialization of drugs and medical products. We want to focus on their profitability with cash return on invest to capital of 23 . Degas wright, thank you. We have to leave the conversation there. A quick look at futures. Futures are moving higher during the show. It looks like the dow would open up 100 points higher. The s p is up. 25 . I want to look at oil this morning. Taking a look at wti. Moving to positive at 87. 78 a barrel. Brent crude is down. Natural gas is taking a tumble this morning down almost 3 . That will do it for us. Squawk box is coming up next. Thank you for watching. The power goes out and we still have wifi to do our homework. And thats a good thing . Great in my book who are you . No power . No problem. Introducing stormready wifi. Now you can stay reliably connected through Power Outages with unlimited cellular data and up to 4 hours of battery backup to keep you online. Only from xfinity. Home of the xfinity 10g network. The power goes out and we still have wifi to do our homework. And thats a good thing . Great in my book who are you . No power . No problem. Introducing stormready wifi. Now you can stay reliably connected through Power Outages with unlimited cellular data and up to 4 hours of battery backup to keep you online. Only from xfinity. Home of the xfinity 10g network. Good morning. President biden warning israel that occupying gaza would be a big mistake. We will take you to the latest from tel aviv strayight ahead. Chaos in the capitol. Jim jordan spent the weekend whipping votes. All other legislation is on hold. We will take you live to washington this morning. Pharma stocks under pressure after one giant slashed the fullyear forecast. We will show you what is moving right now. It is monday, october 16th, 2023 and squawk box begins right now. Good morning. Welcome to squawk box here on cnbc. We are live from the Nasdaq Market site in times square. Im becky quick along with andrew ross sorkin. Joe is out today. Happy monday, folks. Here we go again. Lets look at what is happening with the equities. Green arrows for the dow and s p. Dow with a gain of 96 points. S p up 6. Nasdaq is down fractionally at this point. We are talking about coming off the week where the nasdaq was actually lower. S p up for the second week in a low and dow up higher for the week. If you look at what is happening with treasury yields, that is the big