We have thetake away. The tesla tumble as a new stock takes its place. Getting set for the final jobs report before the next policy decision. The key demographic driving the higher trends. Its friday, march 8th, 2024. Youre watching Worldwide Exchange right here on cnbc. Good morning and welcome to Worldwide Exchange. Thanks for being with us. We will get you ready for the trading day ahead. We check the u. S. Stock futures with the s p coming offanother record close. Futures are green across the board. Dow opening 20 points higher. The nasdaq moving higher right now up over. 30 in the premarket. We are looking at the gainers on the s p after yesterdays record close. Take a look. A very big concentration on tech. Nvidia at the top up 3 in the premarket. Intel and micron in the list. Adobe down here as well. Also this morning, we are seeing 81 s p stocks trading at 52week or alltime highs. The highs are broad based across industrials and materials and more. We are checking the bond market as well. The benchmark as well at 4. 07 . It has fallen 15 basis points from the start of the week. Similar story for the long bond which is a read on inflation exe expec expectations. We go to gold. It is continuing the recordbreaking rally. Gold trading at 2,175 an ounce. You see the runup here. This is since 1973. Huge runup since december 30th of 1973. Gold is up over 1,700 . Thats the Morning Money set up. Attention back to the markets. S p and nasdaq with the alltime highs yesterday. Jay powell says the fed is just not far from a move and the ecb strikes a dovish tone. The s p is up 1 this week. If it holds these gains, it would have posted gains in 17 of the last 19 weeks. That is the first time that has happened since 1964. The focus on the monthly jobs report. Investors look at those numbers for insight into a rate cut. Lets bring in robert teeter. Great to have you here. Great to see you, frank. S p hitting a high. Nasdaq hitting a high. You are focus odd valuation. You are focused on trailing 12month valuation for the s p coming in 23 times. You said that means we have to have a cut. Why . We have seen it in treasuries as you pointed out with the yields coming down the past few weeks with the rally going on and broadening out. Expectations are for a fed cut in june. That is required to keep the rally going. The longer the fed waits, the more pressure it puts on the economy and valuation. We are dependent on the rate cut in the summer to keep the rally going. You are saying we are dependent on the cut happening in the summer. It is keeps getting pushed out more and more. Does it matter how deep the cut is or the fact we get a cut . The fact we get a cut under way. You look at the year ahead and expectations of where fed funds will be, im 100 basis points lower. Once that rate cut cycle is univer under way, you can get more comfortable in valuations. We thneed that rate to keep the rally going. The state of the Union Address from President Biden last night and he focused on the strength of the economy and low unemployment. You are looking at a relaltime number from the atlanta fed. The read came in before the state of the Union Addressed was scheduled. It came in at 2. 5 growth for q1 of 2024. What does that mean for the economy and Market Sentiment . That is a positive signal. We will get more indication on that with the payroll numbers this morning. That is where the strength is coming from. Consumers have more income and the economy has been more resilient than people have predicted with the jobs continuing to grow. That level of Economic Growth at 2. 5 is positive for earnings. That puts you in a world of high single digit earnings gains with that gdp growth. That continuation of job gains is important for the economy and earnings. Robert, first crack at the question ill ask a number of guests. The job report coming up later today. Are we back to good news is bads in if this comes in hotter than expected . Does that give you a concern with the rate cut in june . I think we need to see a bit of economic weakness. We heard powell say he is ready to cut on the basis of not being overly restrictive. He wants to see strong jobs and inflation coming down. Robert teeter, thank you. Thank you, frank. Turning attention to washington, d. C. President biden vowing to raise taxes and announcing the plans to hike corporate minimum taxes and cut deductions for executive pay. President biden proposing a new tax credit to help americans buy a first home or trade up to a larger one. The measures are part of the budget plan to lower the deficit by 3 trillion over ten years. Im not anticorporation, but i grew up in a moment where trickle down economics did not put much on my dads kitchen table. I vow to turn things around so middle class does well. When they do well, the poor still does well. Lets talk about the big take aways from the speech. Courtney gilman is here with from strategas investments. Good morning. You believe the style in which the president delivered the state of the union was substantial for investors and may be more important than what he had to say. How do you think investors will view the president S Performance . We believe there may have been proposals that President Biden discussed last night which may have surprised investors. The important thing is the delivery of the speech. We think it provided some buyancy to the candidacy. You run two different portfolios. One is a republican policy focused portfolio and you have a democrat policy focused portfolio. On the democrat side, you have infrastructure and green energy and tech and cannabis. The republican portfolio is out performing the democratic one. Do you see this leading to a shift and where investors are putting their money . Will they put more in the infrastructure . Year to date, we have seen a narrow out performance from the republican portfolio over the democratic portfolio. The portfolios are not telling us too much right now. It does look like a 50 50 race when we run them against each other. We see investors having a hard time price in the election with the issues with the candidates. Age and criminal cases and unfa unfavorability. There are probably Firm Investors which are optimistic about his candidacy and the optimism of winning the election. There is a boost to the biden companies. We see going into any election, we see stocks leveraged to the candidate moving. We saw that in the midterms with green energy. I expect green energy to move with investors with how they are thinking biden will do going into the election. We expect energy and cannabis moving over the next couple of months. Msosetf up 3 . Courtney gelman, thank you. A long way to go before november. W well have you back. Thank you. We have more to come on Worldwide Exchange, including the one word investors need to know today. First, the stock taking teslas place as elon musks company has fallen from grace. And the stocks that Goldman Sachs thinks will have major upside ahead. Later, the big money movers and why the digital pen is mightier than the sword. A very busy hour when Worldwide Exchange returns. What if one partner could do it all . That partner is ontario, canada. With all the Critical Minerals to make electric vehicle batteries. 65,000 stem graduates per year. One of north americas largest i. T. Clusters. A fully integrated supply chain. All powered by one of the cleanest grids in north america. Ontario. Your innovation partner. welcome back to Worldwide Exchange. A market flash from japan. Reuters is reporting that the bank of japan is considering ending the negative Rate Campaign as soon as april. Lets see how europe is shaping up as its trading day is under way with Arabile Gumede in the london newsroom with more on the early action. Arabile, you didnt tell me we were wearing black today. You are supposed to tell me. Frank, it is an every friday thing. I do this look every friday. If we are doing Market Reports on friday, you will find me in it. Nonetheless, lets get into the market picture. You are looking for black, we are in the black for markets across europe. It is really the ftse 100 and dax that are actually in negative territory. Hellofresh is a decliner with the german market. Around 40 weaker on the back of the Profit Guidance dip you are seeing. It is a big fall on that front. Overall, a mixed picture. The European Central bank decided to keep Interest Rates unchanged yesterday. D downgraded the inflation forecast for 2024 which is good news for those looking at the inflation print to see when the next cut or a cut in Interest Rates would come from the ecb. It looks like june is the date. The market has priced in that significantly. If we stay on the equities front, specifically on the sectors, this is what is moving things along. You will take a look at the retail space on the back of the hellofresh story and then Financial Services managing to move a little bit higher. If you take a look at the healthcare stock, that is down marginally on the back of novo nordisk. They are pulling back in premarket trade. Particularly after surpassing tesla in market cap on positive early trial data. It is on the nordic trading picture that novo nordisk beating out tesla. Not necessarily on the u. S. Listing. That is quite significant as well in the Market Movement trade. Happy friday, frank. Arabile, thank you. Arabile gumede. We will go to our big money movers. Costco shares are under pressure this morning. The big box retailer missing holiday revenue expectations despite growth and sales. Customers spent more time on Shopping Trips in the quarter. They added Sporting Goods and gardening. They will have falling freight costs. Mongodb issued weak guidance and it invests in key products and go to market initiatives. Shares down more than 8 . Docusign popping. The Company Offering strong guidance for the Current Quarter driven by enterprise and Small Business customers. I. T. Spending is improving and strong billing figures were faster than expected. Speaking of the big money movers, our colleagues are highlighting stocks that have more room to run after notching solid gains. Looking at the Goldman Sachs note and others, they found allied financial and shell and tesco have more than 30 upside potential. First solar could surge 67 this year. For more and other stories like this, head to cnbc. Com pro. Coming up on Worldwide Exchange, a key beneficiary of the key bipartisan law is up since President Biden took office. We speak with the ceo next. He will tell you why trehe is more room for the stock to run. Stay with us. Welcome back to Worldwide Exchange. Shares of wesco this morning are closing 3 higher from the upgrade from oppenheimer. The fullyear guidance with the mid range above estimates. It supplies electrical com components for businesses. Joining me to discuss his outlook for the supply chain is john engel. John, good morning. Good morning, frank. Pleasure to be with you. You are having a bit of a busy week. You had the upgrade from oppenheimer esterday. You released updated fullyear guidance and you released the common stock dividend under 38 cents a share. What are you seeing in the business . You have a lot of confidence going forward. Were a leading fortune 200 distribution and supply Chain Management company. We had a great run over the last three years. You mentioned three strong businesses. Our future outlook and current momentum is fueled by infrastructure and Public Sector investments along with the strong secular growth trends. A. I. Driven data centers and electrification and utility investment with generation and grid modernization efforts as well as near shoring and rer reshoring to the u. S. Global supply chains are impacted. We see a shift back to the u. S. Which bodes well for the u. S. Market. A lot of tailwinds for the market. You mentioned Public Investment and infrastructure. I want to play a sound bite from President Biden in the state of the Union Address. I want your reaction on what he had to say. My policies attracted 650 billion in private sector investment. In clean energy and advanced manufacturing creating tens of thousands of jobs here in america. Thanks to the bipartisan infrastructure law, 46,000 new projects have been announced across your communities. President biden touting some of the investments in infrastructure through his policies and private investments with the chips act. What does that mean for your business . Where are you seeing the benefits or more revenue coming in . Is it fiber optics or security . Where is the impact . The u. S. Market is the largest market in the world and it is showing resilience. These investments are occurring in all three of the businesses. First with our css business. Fiber optic investments and broadband and utility and Power Generation and grid modernization. Our electrical business with the overall electrification impacting the economy and industrial. It is the start of the industrial super cycle fueled by nearshoring and reshoring. John, we hear a. I. Is the transformative force in every industry right now. Today, right now, how is a. I. Impacting your business . Huge impact. Positive. First with our customers. We serve directly the Tech Companies building out data centers. Hyper Scale Data Centers are the direct customers. We serve 90 of the fortune 900 companies directly. We have a leading global solution. A. I. , more specifically, gen a. I. Is an accelerate to the growth of data centers. Is impa. John engel, great to have you here. Thank you very much. Thank you, frank. Coming up, going for a clean shave. Wall street looking to drop its 5 00 shadow with the hot new ipo reportedly getting banks on board for the debut. If you havent already, follow our podcast on apple or spotify or other podcast apps. More Worldwide Exchange coming up after this. Whoa, how did you defeat them . With a little kung fu strength and by connecting my devices to the most powerful force of all. Skadoosh. Hah, huh . Cool right . Amazing. Harness the power of xfinity internet and stay connected to the things you love. Ah, theyll be like this for hours. Hello dad, hello dad, hello da. Uhoh. Good bunnies. Ahh it is 5 30 a. M. In the new york city area. There is more ahead on Worldwide Exchange. Heres whats on deck. The s p hitting another alltime high. Key to the Market Action today. The jobs report released as jay powell signals they may be closer to cutting rates. And President Biden addressing the difficult relationship with china in his state of the Union Address. It is friday, march 8th. You are watching Worldwide Exchange here on cnbc. Welcome back to Worldwide Exchange. Im frank holland. Lets get you ready for the trading day ahead and we pick up the half hour stock futures with the s p coming off another record close. The s p will open higher. In the premarket, shares are moving higher. The dow would open up 40 points higher. The nasdaq easing back off the highs of earlier this morning. Checking the gainers on the s p after yesterdays close. Nvidia at the top. Shares up 3 . Another chip maker, intel, in there as well. Alexandria real estate is up there. And apple marking the seventh straight day of losses. If you take out the preMarket Action, the stock is down 6 over the last week. Year to date down 12 . We have Katie Stockton stating if this stock breaks below the 100 support level, it will be a setback for shares. We have to continue to watch it. We are watching the bond market with the yields at the lowest level in three years. The tenyear yield at 4. 07 which is down 15 basis points over the last week. Similar for the long bond which is a read on inflation expectations. That is the money set up now. Lets turn to the report coming out later today. The jobs report out at 8 30 a. M. The economists expecting hiring to lower with nonfarm payroll to come in at 198,000 compared to 353,000 in january. The Unemployment Rate expected to hold steady at 3. 5 . The key for wall street here is the hotter than expected reading which could help the Central Banks first cut in years. Here is jay powell speaking to the senate on that topic yesterday. What we expect and what we are seeing is continued strongistrong growth. If the economy evolves over that path, we feel removing restrictive stance policy will begin over the course of this year. Joining me now is stifel managing director lindsey piazza. Good morning. Are we in a situation where good news is bad news if this jobs report comes in hotter than expected . Do you think that gives the market concern about the cuts . I think if the report doesnt come in hotter than expected, and comes in on consensus, that perpetuates the notion of the solid labor market and gives the fed cover to remain on the sideline as it waits to see further improvement in the inflation data. The market consensus right no