Moment. Plus, one month and 110 billions in deals. We look at the targets on the table. And fresh bullish sentiment sending bitcoin to 2023 highs. It is tuesday, october 24th, 2023. You are watching Worldwide Exchange here on cnbc. Good morning. Welcome to Worldwide Exchange. Im frank holland. We kickoff your tuesday with the stock futures after the mixed day yesterday. The s p closed down for the fifth session in a row. Look at the board. Green across the board. The dow would open up 100 points higher. However, the futures are off the highs from the early this morning. They may be higher right now, but small caps are not as we continue to watch the russell 2000 trading at a fresh 52week low. Look right here. You see it is down almost 5. 5 this year so far. You see the slide accelerating in the last couple months just right now. We want to look at the bond market. That was the big story yesterday. Sharp reversal in yields in the last 24 hours as the tenyear bond pulls back from 5 . This morning, 4. 82 . A 20basis point slide to the down side. Sharp move to the down side right there as you can see. We want to look at the Energy Sector coming off the 50 billion chevronhess deal. Wti is 85. 65 a barrel. Brent crude up. 25 . We are watching bitcoin. Bitcoin partying like it is july. Above 30,000. 34,070. Up 9 this morning. Sharp move to the upside. The price of bitcoin has doubled so far this year up 105 . Much more on this big move to the upside when it comes to cryptocurrency coming up later in the show. We will turn attention back to stocks and the rate shocks Ripple Effect across portfolios all over wall street. Yields may take a breather this morning. Fast money reports a bit stop on the way to 5. 5 . The highest point in the yield curve is sixmonth bills at 5. 5 . If we invert the yield curve and we are destined to do that and it has to go to 5. 5 . The fed has said they are higher for longer. Joining me now is chief global strategist jay woods and joanna gallegos. I think it is hard to predict rates for anything who will try to have a hard time doing that. The important point is that fixed income and yields have been sky rocketed since the fed started raising rates and we know it will be higher for longer. How should investors think about this right now . If you are concerned and you want to dampen risk in the portfolio, we have been talking all through 2023 as you need to switch the portfolio to fixed income and Getting Better exposure and taking advantage of these yields. There is a Silver Lining to this and that is yields are at historic highs and there is a great and interesting barbell. You can wait it out and get paid in cash as jim mentioned in the shortterm treasury market. Were advocating people move further out and reduce duriatio. You are getting paid for risk in the way you havent been. Joanna will not try to forecast where the tenyear yield is headed, but you are moving beyond that . Over the longer term time frame, it is where we are moving. The reversal yesterday was very telling. I think rates should come down for the foreseeable future. As far as rates go, they have been driving this bus. I think they have come too far ahead over their skis. I think we will get a cooloff wh which is good for equities. I want to talk about tweets we have from notable investors. One from bill gross. On bonds, invest in the curve. It should go positive before year end. Im buying sofr futures. Higher for longer is yesterdays mantra. Then from bill ackman. He said we covered our bond short. There is too much risk in the world. The economy is slowing faster than recent data suggests. Jay, ill start with you. What is your take on these tweets from notable investors with the focus on the rise in yields . I think theyre on to something. The higher for longer narrative, i dont think that is something that will go away any time soon. I think with the bond market, we may have put in a nearterm bond and get a really here. Those tweets were spot on. When those two guys speak, you listen. Ef hutton effect. No doubt. Joanna, you were saying something similar to bill gross. Invest in the curve. Agree with that way to play it . Exactly. I think if you look at 2023, the curve itself has been more volatile than other areas of fixed income. Investing in the curve on the long side or volatility of long treasuries have been, you know, almost as close as to the volatility of equities. We advocate get out of any Duration Risk in the portfolio. Look for a good, quality credit. We really like the ccc category. It is yielding over 14 . It has lower volatility in the s p. If you expect weakness in the economy or thinking that rates will reverse, it is a matter of how fast they reverse and coming down from levels like 14 or even in ccc or high yield, we really think people should be considering these spaces. It is the best kept secret in fixed income. Low Interest Rate risk across the board. Reversal of rates is probably going to take time. For 2024, you still need to think about fixed income areas. Joanna is focussed on the best kept seche is secret. I think the secrets will be revealed this week. Jim cramer tweeted this is the playoffs for the market. This earnings hseason will be telling. You had Katie Stockton with the great preview on the show yesterday. This is what is going to move the equity market. 14 of the s p 500 is consistent of google and microsoft and amazon and meta which report this week. This, to me, is the tell. I think earnings are there. Watch the russell. The russell has been beaten down because rates are spike so high. They are coming to a nice floor. If you back it out, were at a major support area. I think we will get a bit of a relief rally here and the mega caps kick it off. Russell down 5. 5 . Jay and joanna, thank you. Thank you. We turn attention to washington, d. C. And capitol hill. House republicans trying to rally again to find a speaker with the vote set for later this morning. We have eight candidates likely on the ballot. We have brie jackson with more from d. C. Reporter good morning, frank. Is today the day we see a speaker elected . This morning, we know gop will have eight candidates to choose from after one dropped out of the race. Last night, the republicans spent hours in the closeddoor forum. Each candidate made their pitch. This morning, they will meet again and they will have multiple secret ballots. Whoever gets the lowest votes gets eliminated from the next round. This process continues until one candidate wins 50 of the vote. That person is the gop nominee and face the challenge of getting 217 votes in the full house. Finally, they can win the gavel and get the house back to work. Lawmakers say they are confident that a speaker role will be filled tonight and several have confirmed that during the forum last night, all of the speakers committed to back whoever is chosen. Frank. Brie jackson, thank you. We have more to come on Worldwide Exchange, including the one word that investors have to know today. But first, one month and 110 billion in deals. We look at the Energy Sector and the possible acquisition targets that are still on the table. Plus, we have the big money movers and a buyers market for redfin. We also layout the numbers when microsoft and alphabet are set to report today. We have a very busy hour when Worldwide Exchange returns. Ne. Is it possible to help keep our Online Platform safe from cyberthreats . Absolutely. Can we provide health care virtually anywhere . We can help with that. Is it possible to use predictive monitoring to address operations issues . We can help with that, too. With the advanced connectivity and intelligence of global secure networking from comcast business. Its not just possible. Its happening. Welcome back to Worldwide Exchange. It looks like the dow would open up 90 points higher. Nasdaq and s p up. 50 . Lets see how the european trading day is shaping up with joumanna bercetche. Frank, good morning. It has been a choppy session and were only a couple hours in. We were down early on. Now we have green coming through. The outperforming market is the french market. Cac 40 up. 40 . We heard from hermes which beat expectations and pulling up the luxury sector with it. Outside of france, red on the board for the ftse 100. It is down. 20 . Ftse mib is down. 20 in italy. It is a busy earnings day with hermes and logitech. The main benchmark after raising the outlook with the focus on cost discipline which is paying off after sales falling in the second quarter. Barclays shares are under heavy selling this morning. We were 8 lower at one stage. One of the worst foreperforming stocks in the region. Pressure for savers was beginning to hit the margins. They are forced to pass on the higher Interest Rates to depositors and savers and it is hitting margins. That is weighing on the barclays share price and uk banking sector. Frank. Julianna, thank you. Julianna tatelbaum live in the london newsroom. Shares of chevron and hess are moving higher as investors are digesting the 52 billion takeover deal. Hess dropped 4 and chevron fell 2 for the day. That was the worst performer in the s p. Mike wirth laid out the case yesterday on squawk on the street. We need to operate in the world we live in and that is one which still needs oil and gas delivered by responsible producers. This is an exciting deal for us. This is about longterm growth and longterm value and commitment to the Energy Sector. Will the deal and exxonmobil with pioneer open the flood gates or put a lid on the m a sector . We have peter with the latest on the deal joining us. Thank you, frank. Give us a sense. Is this a trend investors should pay close attention to or is there any way you can capitalize on it . It is hard not to Pay Attention when you talk about deals this big. With the case of hess, that is historic with the company being around for nearly a century. These are cases where you have motivated sellers. Ceos nearing retirement age and maybe an approach made sense for the buyers. Oil prices around 90 a barrel tends to be more fun to run an oil company. Agrees on a price can be difficult, but in these cases, you know, we had big deals consummated for pioneer and hess. Peter, you are hitting on oil prices. Oil prices are up 15 a barrel since july. We had opec cuts announcements which has been a catalyst for price action there. How does this play a factor in m a . The Energy Industry or Traditional Oil and gas industry is healthy. Balance sheets have been repaired from where they were three years ago. Dividends are on the rise. In this case, you know, you are getting mmm a. Chevron and exxon are just offering shares in their deals. It is a good time for the companies to invest. They have been a little bit hesitant, particularly here in the United States with more capital discipline. Being cautious on where and when they heinvest. A lot of talk about the permian basin. The highest producing oilfields in the United States. Give us a sense how that influences the possible m a deal. The likely target means you have to have a willing seller. In the case of pioneer and hess, you have ceos near retirement on companies they built and run for decades. I think the basin has consolidated into the hands of a few companies. Namely oxy and chevron and conocophillips and exxonmobil. There are other bigger players out there like Eog Resources which is diversified. A lot of possibilities, peter, is there one in your mind that is likely Going Forward . These deals are hard to put together. Im not sure i can say one Single Company can agree to the price. I think it is less likely you get someone selling. All right. Peter mcnally, thank you. I appreciate the time. Coming up on Worldwide Exchange, energy deal making may be red hot, but David Solomon says the good times start and end in texas. Comments from ldngomas ceo coming up right after this. But if its using untrusted data can you trust the results . Your business doesnt just need ai, it needs the right ai for your business. Introducing watsonx a platform designed to multiply output by tailoring ai to your needs. When you watsonx your business, you can train, tune and deploy ai, all with your trusted data. Lets create the right ai for your business with watsonx. Ibm. Lets create. With cirkul, your water is deliciously flavored at the turn of a dial, with zero sugar and zero calories. And cirkul has over 40 flavors, so your water can be as unique as you are. Try cirkul. Your water, your way. Now with even more flavors. Available at walmart or drinkcirkul. Com. Welcome back to Worldwide Exchange. A news alert from china. We have eunice yoon joining us on the news line. Eunice. Reporter thank you, frank. The reports have started to merge that president xi jinping has visited the central bank. He, along with the vice premier and some other government officials, appear to have not only visited the central bank, but the regulator and the administrator of foreign exchange. The vice premier visited the sovereign wealth fund. What is interesting is this is the first time that we heard president xi visiting the central bank. There are reports that the purpose of his visit is to better understand the forex reserves that china has which is 3 trillion. Frank. Eunice, i want to come back to you. You mentioned this is the first time we know of that president xi has visited the peoples bank of china. Is that a significant visit or a coincidence it happens on this day . Reporter we dont know because this has not been confirmed. It is not in state media. Also, the Central Bank Web site hasnt confirmed the visit. In terms of timing, what is interesting is the economy is doing quite poorly. There is a lot of concern about the direction of the economy and, in fact, just next week, were expecting to see a closed door work conference in beijing. A lot of folks are expecting the leadership is looking at what is happening at the economy and try to set up more priorities and policies to manage risks as well as really prioritize the economic concerns that people have about this place. Again, reports that president xi of china making the first trip to the peoples bank of china. Eunice yoon with the latest. Thank you. Time now for the big money movers. We start with shares of Cleveland Cliffs moving higher. Company reporting a jump in Third Quarter profits. Cleveland noting liquidity is an alltime high after 600 million generated in Free Cash Flow. Shares up 3 . Redfin shares surging after ap apollo capital is committing to 250 million in financing. It extends the debt maturities into 2028 opening the door for debt repurchasing. Shares up over 9. 5 . And shares of okta with an 8 slump this morning. It wiped out 2 billion of market cap and comes after the company disclosed a hack of its support systems last week. The latest in a string of similar incidents. Okta dropped 8 yesterday. Time to get a check of the headlines outside of the world of business with phillip mena in new york. Good morning, two hostages have been freed from hamas. On friday, two israeli american citizens were released. Officials believe more than 200 hostages remain in hamas ca capt captivity. In louisiana, 150 people were killed after the massive pileup. The crash left two dozen people injured and it was likely caused by dense fog and smoke from wildfires. The conditions known as super fog. The visibility was reduced to near zero. Finally, a surprise delivery at the Indianapolis Colts and Cleveland Browns game. A baby born 20 mineutes into th game. The new mom arrived to the stadium and went straight to the first aid station. David bell told indianapolis tv station that the newborn is his niece. The game was exciting enough. 3938. On top of that, a new baby to be celebrated. Congratulations. That was a game. Phillip, great to see you. Straight ahead on Worldwide Exchange, the allstar studded streaming deal courtesy of former president barack obama. It is coming up when Worldwide Exchange continues. Hi, im jason. Ive lost 228 pounds on golo. 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Annd wall streets top leaders are gathering for davos in the desert and offering insight into the higher for longer thinking. It is tuesday, october 24th, 2023. You are watching Worldwide Exchange here on cnbc. Welcome back to worldwide exch exchange. Imfrank holland. We pick up the half hour with the check on the trading. Dow would open up 70 points higher. Turning to the bond market. The tenyear bond touched 5 briefly yesterday and we start with the tenyear bond now down 20 basis points from yesterday. Very similar story with the long bond. Also down just about 20 basis points from yesterday. Again, the whole yield curve moving to the downside. Digging deeper into the rate effect with tech. Since the start of july, the tech xlr is down 5 . 5. 25 . The tenyear treasury yield is up during tha