Transcripts For CNBC Worldwide 20240703 : vimarsana.com

In the works on the back of surging copper demand. Later, the white house announces another multibillion dollar award to another giant. Its thursday, april 25th, 2024 and are you watching Worldwide Exchange. Good morning thank you to much for being with us before we get start ed, a quick news alert the Biden Administration announcing a 6. 1 billion Funding Agreement with micron under the chips and sciences act. The deal will be in support of the construction of the facilities in new york and idaho. Micron investing 125 billion into the projects. President biden will be in syracuse, new york today we will have more this later in the hour look at micron shares down over. 13 . Turning back to the trading day ahead and the check of the futures after a mixed session for stocks dow snapped the foursession win streak and you can see all three are in the red this morning nasdaq is down 1 . The s p down. 50 . You see the dow looking like it would open over 100 points lower. Of course, the big story is big tech Meta Platforms sinking ahead of the market open. You see shares down 13 . Much more on that in a moment. Dragging the dow lower is ibm. Set for the worst day in two years. Announcing a 6. 4 billion deal with hashicorp look at the mega cap tech opening. Alphabet is down 3 followed by amazon down 2. 5 we are talking more about meta and the rest magnificent seven in a second. The tenyear treasury yield is ahead of the first read on the First Quarter gdp. Look at the benchmark at 4. 64. You see the twoyear yield pull back right now at 4. 92 we are looking at energy and oil on pace for the first down week in the last four look at the oil market this morning. We are seeing it higher right now to flat. Wti is trading at 82. 90 a barrel brent crude is trading belo bebel bebel below 88. 15 a barrel. We go back to the biggest money mover this morning that is Meta Platforms strong First Quarter results doing little to prop up the stock. It is looking to shed 200 billion at the open. Shares down 13 right now. Investors really appear to be focusing on the weak guidance as it leaves the year of efficiency behind Mark Zuckerberg telling shareholders to hang in there with risky bets like Artificial Intelligence we typically dont focus that much on the new areas until they reach significant scale because it is higher leverage to improve on other things before these products are at scale. You enter the period where i think smart investors see that product is scaling and there is a clear opportunity there before the revenue materializes joining me here in london with the deeper dive into the quarter is sarah kuntz meta shares down 13 we have seen it fall more than 13 in heextended trading the fast they have soft cap ex guidance and revenue guidance is overblown or are investors reacting appropriately i think it has to do with the chain. Mark zuckerberg wore a chain and nothing is the same. I think a. I. Is expensive. It makes sense that investors are nervous about that because the reality is last time zuckerberg went on one of the tangents in the metaverse was not good the difference is there is a there there. They have the data which you cannot overstate the importance. I think that this bet is going to payoff. People are scared when you have eps doubling year over year it is hard to be scared with that revenue growth. It is on the soft guidance on the increased spend. You said the chain thing, hilarious. The company took off with mma, but the chain is derailing that. We have to track that. He dipped into the metaverse is when the trouble started looking at the numbers loss of 8. 5 billion. I think he should give it up. We see apple with the vision pro which will not happen. The market has not embraced this technology no matter who is selling it to them i like to see them get more from the metaverse. When you look at the thnumber, t is a weird pet project i want to talk about something less sexy about other things ads is a miss. Meta gets 98 of the revenue are people not focused on that it is a global problem. Not a meta problem people are buying ads to place against content. Content on social media is not necessarily brand friendly you have the massive unrest and it is not surprising that people are saying maybe we are not going to advertise next to some of this stuff. I dont think that is a huge indicator of anything. Is it a indicator of magnificent seven performance . Growing business for microsoft and meta amazon could be the winner here what they are advertising is product listing ads. You are not advertising against social content. A lot to breakdown with magnificent seven. You have to come back before i leave london sarah, thank you that chain comment, thank you. Moving on. Lets get a check of the other big money mothvers ibm on track for the first day since 2021 the Company Announcing it will acquire hashicorp for 6. 5 billion. Shares of ibm down 8 . Service is lower with the massive earnings beat. Revenue growing by 24 and the transactions of 5 million doubling the ceo says Artificial Intelligence is now the fastest selling in Company History catch Bill Mcdermott this morning at 9 00 a. M. Different story with chipotle shares are popping this morning. The fast food chain beating earnings revenue brian nichol speaking out yesterday. We are seeing every transaction of sub 50,000 to north of 150,000 we see strength in the business with every income cohort and customer in chipotle niccol adding in terms of the international expansion, it has the ability to increase the sales. And now we have the corporate stories with Silvana Henao at cnbc hq good morning, frank more trouble for apple in china. Preliminary data showing apple has lost its title as the countrys Biggest Smartphone seller in the First Quarter. Shipments falling 6. 6 in the period compared to a year ago. Apple now in third place in terms of market share in china behind brands honor and huawei. Microsoft backed data Company Pricing the ipo at 32 per share above the expected range and on the back of the offering, the company now being valued at 5. 6 billion it is set to begin trading at the New York Stock Exchange today under the symbol rbrk. Shares of Anglo America are surging in london as bhp makes a 39 billion offer for the company. A deal would create the worlds biggest copper miner with 10 of global output. It would give bhp more access to potash in australia, frank looking at shares up over 12 . Silvana, thank you very much we have more to come here on Worldwide Exchange, including the one word that investors have to know today, but first, more on big tech as black eye and why jim cramer says surging bond yields are not helping the situation. Pushing past meta and investors get set for microsoft and alphabet after the close today. And we are looking at the 6. 5 billion bet for micron by the Biden Administration we have a very busy hour still ahead when Worldwide Exchange returns. Stay with us its all the things that keep this world turning. Its the gotos that keep us going. The places we cheer. Trust. Hang out. And check in. They all choose the advanced Network Solutions and round the clock partnership from comcast business. Powering more businesses than anyone. Powering possibilities. My name is Ashley Cortez and im the founder of the stay Beautiful Foundation when i started in 2016 i would go to the post office and literally fill out each persons name on a label and now with shipstation we are shipping 500 beauty boxes a month it takes less than 5 minutes for me to get all of my labels and get beauty in the hands of women who are battling cancer so much quicker shipstation the 1 choice of Online Sellers go to shipstation. Com try and get 2 months free welcome back. You see the u. S. Stocks in the red there on the board the nasdaq down 1 the dow is looking like it would open more than 100 points lower. The biggest premarket laggards on the nasdaq 100. Meta and oreilly and trade desk and alphabet on the board. Lets see how europe is shaping up with silvia amaro here with me we were talking about earnings in europe as well. It is a very busy day to give you an idea, we have more than 300 Companies Reporting. I want to give you the highlights we heard from Deutsche Bank which posted a 10 rise in the First Quarter net profit to 1. 5 billion euro the german lender saw the net revenue grow with the investment inflows reaching 1 billion. And nestle with the miss on the forecast the swiss consumer giant backed the fullyear outlook for 4 of sales. When it comes to the pharma pace, astrazeneca was looking for a profit when it confirmed the fullyear guide and and revenue hit 12. 7 billion. In the luxury space, hermes reported a better than expected 17 jump in the First Quarter revenue despite the slightly softer traffic in china. Deutsche Bank Highlights the reporting so far this morning, but you see with hermes shares, showing a busy day this is the start of the thick of the earnings season in europe you had two Big Bank Earnings it was a very busy day thank you. We turn attention back to the u. S. And wall street jim cramer weighing in to the stock market turmoil suggesting it may be time to raise cash as investors look to other sectors of the market outside of stocks. The bond market has gotten so compelling to so many people, that they want to buy some of the bonds. They need to sell stock to swap equities they have to raise cash to buy bonds. You need buyers to come in because so much is for sale. For many, that means cash the stocks to be able to sell and buy. Joining me now is gina sanchez. Good morning i want to get your take on what jim cramer said. The bond market is creating competition for the equity market right now. Yeah. I do think it is a real issue that you cannot ignore, particularly when you still have segments of the stock market whose price to earnings ratio have not priced in the fact that expectations for fed rate cuts have gone from six to four to two. Thats a big difference. That suggests that dividend yields will continue to have competition. Looking across the stock market, there are stocks that are vulnerable you say there are stocks that are vulnerable you mentioned the cuts from six to four to two magnificent seven is also moving from six to two. If you look back to april 16th, it feels like it was forever ago. Jay powell said rates will stay as high as they need to be if these stocks are supposedly not as sensitive to interest rates, why are they declining more than the general market during this time i actually think they are sensitive to interest rates. These are the highly valued stocks to the stock market generally. You also get some of the best growth the big challenge is where you have high valuation and not necessarily great growth profile. You look at apple for mexample. It is really hard to get excited about apple at this the valuation at this point in time. If you compare to nvidia, that is trading at roughly the same price to earnings for much, much better growth. Why would you take apple now the competition within the magnificent seven is going to get fierce you see tesla dropping out i think it is the mag six now. Tesla is struggling to maintain its mantle because now you have margins meeting lower price competition and abandonment of the lowpriced tesla that creates a challenge for high pe stock. S we are all struggling with the fed. We have gdp reporting today and expecting to show a slowdown and pce coming up tomorrow it is expected to show a decrease in your mind, are these Market Movers i just mentioned what jay powell said on april 16th, are these Market Movers . You know, it is jay powell who has preempted what is coming he set the stage for higher for longer the fed funds futures have adjusted what has not adjusted is the broad multiple across the stock market and that is why you are seeing quite a bit of blood in the streets at moment. Gina, thank you colorful language. Blood that streets a lot of people are scratching their heads. Gina, thank you. For more on what is driving the markets and trading day ahead, head to cnbc pro at cnbc. Com pro coming up on Worldwide Exchange, throw out the 50,000 price tags because at the beijing auto show, we very broad appeal thats where we find our eunice yoon reporter thank you, frank. Elon musk elonhoped to revisit e idea of the affordable ev. He is not the only one more in a few minutes. With gold and copper prices pushing towards alltime highs, u. S. Gold corp is advancing its environmentally friendly gold and Copper Mining project and creating american jobs in mining friendly wyoming. With a Proven Management team and board, a tight share structure, and a solid cash balance, u. S. Golds portfolio of worldclass assets are creating American Growth and homegrown Strategic Metals as the us moves towards an electrified future. U. S. Gold corp. Welcome back to Worldwide Exchange. Some automakers are backing out on the evs those in china are looking for a race to the bottom our eunice yoon is live from the beijing auto show. It looks like you are having a good time, eunice. Reporter i am, frank tesla is not at this show, but like elon musk, his chinese rivals are stressing the importance of affordable evs i spoke with the founder of nio. It will target more conscious budget families. It will be launched in the Third Quarter and delivered in the Fourth Quarter and priced at 30,000. Cheaper than the model y the hometown rival, xpeng, their ceo said 20,000 ev is on the horizon. It will be launched in june. Byd, known for the 9,000 car, launched affordable models 16,000 car and 12,000 model. This is highlighting an issue flagged by the treasury secretary janet yellen who came here earlier this month when she criticized china for overcapacity in several industries, including the car industry at the auto show alone, there are 278 evs and hybrids. Global data told me there are 139 ev brands in china alone and automobile mobility creates excess capacity is as much as 25 million units. Wow thats a lot of capacity that is what people are talking about. I want to ask that you are on the ground there, eunice, what is getting the most buzz and what do you hear about the apple rival . Reporter the answer is fone in the same. The xiaomi is 27,000 and like apple, the idea behind it is to get the Xiaomi Smartphone users into the evs and have this Seamless Technology experience the companys founder said so far they have 76,000 orders for the 100,000 target for the year. He kind of was trolling apple a bit saying 52 of the buyers so far are iphone users suggesting that people might want to make a switch. Eunice, i notice they really like smooth jazz at the beijing auto show. They are blasting it right now also, there are things for sale. You got me a tshirt at disneyland are you able to get me an affordable ev . Is there a way to get me one reporter the music is because they are trying to get us out of here thats their nice way of saying get out of here. Here, it is 6 00 thats what we do, too. Eunice yoon at the beijing auto show thank you. As we head to break, we are watching shares of tesla they are capping off the best day since january of 2022 with the more than 14 gain isterday. Its up. 25 right now. Well be right back after this break. What is cirkul . Cirkul is the fuel you need to take flight. Cirkul is the energy that gets you to the next level. Cirkul is what you hope for when life tosses lemons your way. Cirkul, available at walmart and drinkcirkul. Com. Her uncles unhappy. Im sensing an underlying issue. Its tmobile. It started when we tried to get him under a new plan. But they they unexpectedly unraveled their price lock guarantee. Which has made him, a bit. Unruly. You called yourself the uncarrier. You sing about price lock on those commercials. the price lock, the price lock. so, if you could change the price, change the name its not a lock, i know a lock. So how can we undo the damage . We could all unsubscribe and switch to xfinity. Their connection is unreal. And we could all unexperience this whole session. When we started our businessts uncalled for. We were paying an arm and a leg for postage. I remember setting up shipstation. One or two clicks and everything was up and running. I was printing out labels and saving money. Shipstation saves us so much time. It makes it really easy and seamless. Pick an order, print everything you need, slap the label onto the box, and its ready to go. Our costs for shipping were cut in half. Just like that. Shipstation. The 1 choice of Online Sellers. Go to shipstation. Com try and get 2 months free. It is 5 30 a. M. In the new york city area 10 30 here in london loot a lot more onahead on worldwid exchange. Investors sound the alarm on big cash piles going toward Artificial Intelligence investment for meta. Now the threeday win streak at risk. Futures are in the red across the board. Up next, on the docket, microsoft and alphabet we tee up the metrics you need to watch it is thursday, april 25th, 2024 you are watching Worldwide Exchange here on cnbc welcome back to Worldwide Exchange. Im Worldwide Exchange<\/a>. Good morning thank you to much for being with us before we get start ed, a quick news alert the Biden Administration<\/a> announcing a 6. 1 billion Funding Agreement<\/a> with micron under the chips and sciences act. The deal will be in support of the construction of the facilities in new york and idaho. Micron investing 125 billion into the projects. President biden will be in syracuse, new york today we will have more this later in the hour look at micron shares down over. 13 . Turning back to the trading day ahead and the check of the futures after a mixed session for stocks dow snapped the foursession win streak and you can see all three are in the red this morning nasdaq is down 1 . The s p down. 50 . You see the dow looking like it would open over 100 points lower. Of course, the big story is big tech Meta Platforms<\/a> sinking ahead of the market open. You see shares down 13 . Much more on that in a moment. Dragging the dow lower is ibm. Set for the worst day in two years. Announcing a 6. 4 billion deal with hashicorp look at the mega cap tech opening. Alphabet is down 3 followed by amazon down 2. 5 we are talking more about meta and the rest magnificent seven in a second. The tenyear treasury yield is ahead of the first read on the First Quarter<\/a> gdp. Look at the benchmark at 4. 64. You see the twoyear yield pull back right now at 4. 92 we are looking at energy and oil on pace for the first down week in the last four look at the oil market this morning. We are seeing it higher right now to flat. Wti is trading at 82. 90 a barrel brent crude is trading belo bebel bebel below 88. 15 a barrel. We go back to the biggest money mover this morning that is Meta Platforms<\/a> strong First Quarter<\/a> results doing little to prop up the stock. It is looking to shed 200 billion at the open. Shares down 13 right now. Investors really appear to be focusing on the weak guidance as it leaves the year of efficiency behind Mark Zuckerberg<\/a> telling shareholders to hang in there with risky bets like Artificial Intelligence<\/a> we typically dont focus that much on the new areas until they reach significant scale because it is higher leverage to improve on other things before these products are at scale. You enter the period where i think smart investors see that product is scaling and there is a clear opportunity there before the revenue materializes joining me here in london with the deeper dive into the quarter is sarah kuntz meta shares down 13 we have seen it fall more than 13 in heextended trading the fast they have soft cap ex guidance and revenue guidance is overblown or are investors reacting appropriately i think it has to do with the chain. Mark zuckerberg wore a chain and nothing is the same. I think a. I. Is expensive. It makes sense that investors are nervous about that because the reality is last time zuckerberg went on one of the tangents in the metaverse was not good the difference is there is a there there. They have the data which you cannot overstate the importance. I think that this bet is going to payoff. People are scared when you have eps doubling year over year it is hard to be scared with that revenue growth. It is on the soft guidance on the increased spend. You said the chain thing, hilarious. The company took off with mma, but the chain is derailing that. We have to track that. He dipped into the metaverse is when the trouble started looking at the numbers loss of 8. 5 billion. I think he should give it up. We see apple with the vision pro which will not happen. The market has not embraced this technology no matter who is selling it to them i like to see them get more from the metaverse. When you look at the thnumber, t is a weird pet project i want to talk about something less sexy about other things ads is a miss. Meta gets 98 of the revenue are people not focused on that it is a global problem. Not a meta problem people are buying ads to place against content. Content on social media is not necessarily brand friendly you have the massive unrest and it is not surprising that people are saying maybe we are not going to advertise next to some of this stuff. I dont think that is a huge indicator of anything. Is it a indicator of magnificent seven performance . Growing business for microsoft and meta amazon could be the winner here what they are advertising is product listing ads. You are not advertising against social content. A lot to breakdown with magnificent seven. You have to come back before i leave london sarah, thank you that chain comment, thank you. Moving on. Lets get a check of the other big money mothvers ibm on track for the first day since 2021 the Company Announcing<\/a> it will acquire hashicorp for 6. 5 billion. Shares of ibm down 8 . Service is lower with the massive earnings beat. Revenue growing by 24 and the transactions of 5 million doubling the ceo says Artificial Intelligence<\/a> is now the fastest selling in Company History<\/a> catch Bill Mcdermott<\/a> this morning at 9 00 a. M. Different story with chipotle shares are popping this morning. The fast food chain beating earnings revenue brian nichol speaking out yesterday. We are seeing every transaction of sub 50,000 to north of 150,000 we see strength in the business with every income cohort and customer in chipotle niccol adding in terms of the international expansion, it has the ability to increase the sales. And now we have the corporate stories with Silvana Henao<\/a> at cnbc hq good morning, frank more trouble for apple in china. Preliminary data showing apple has lost its title as the countrys Biggest Smartphone<\/a> seller in the First Quarter<\/a>. Shipments falling 6. 6 in the period compared to a year ago. Apple now in third place in terms of market share in china behind brands honor and huawei. Microsoft backed data Company Pricing<\/a> the ipo at 32 per share above the expected range and on the back of the offering, the company now being valued at 5. 6 billion it is set to begin trading at the New York Stock Exchange<\/a> today under the symbol rbrk. Shares of Anglo America<\/a> are surging in london as bhp makes a 39 billion offer for the company. A deal would create the worlds biggest copper miner with 10 of global output. It would give bhp more access to potash in australia, frank looking at shares up over 12 . Silvana, thank you very much we have more to come here on Worldwide Exchange<\/a>, including the one word that investors have to know today, but first, more on big tech as black eye and why jim cramer says surging bond yields are not helping the situation. Pushing past meta and investors get set for microsoft and alphabet after the close today. And we are looking at the 6. 5 billion bet for micron by the Biden Administration<\/a> we have a very busy hour still ahead when Worldwide Exchange<\/a> returns. Stay with us its all the things that keep this world turning. Its the gotos that keep us going. The places we cheer. Trust. Hang out. And check in. They all choose the advanced Network Solutions<\/a> and round the clock partnership from comcast business. Powering more businesses than anyone. Powering possibilities. My name is Ashley Cortez<\/a> and im the founder of the stay Beautiful Foundation<\/a> when i started in 2016 i would go to the post office and literally fill out each persons name on a label and now with shipstation we are shipping 500 beauty boxes a month it takes less than 5 minutes for me to get all of my labels and get beauty in the hands of women who are battling cancer so much quicker shipstation the 1 choice of Online Sellers<\/a> go to shipstation. Com try and get 2 months free welcome back. You see the u. S. Stocks in the red there on the board the nasdaq down 1 the dow is looking like it would open more than 100 points lower. The biggest premarket laggards on the nasdaq 100. Meta and oreilly and trade desk and alphabet on the board. Lets see how europe is shaping up with silvia amaro here with me we were talking about earnings in europe as well. It is a very busy day to give you an idea, we have more than 300 Companies Reporting<\/a>. I want to give you the highlights we heard from Deutsche Bank<\/a> which posted a 10 rise in the First Quarter<\/a> net profit to 1. 5 billion euro the german lender saw the net revenue grow with the investment inflows reaching 1 billion. And nestle with the miss on the forecast the swiss consumer giant backed the fullyear outlook for 4 of sales. When it comes to the pharma pace, astrazeneca was looking for a profit when it confirmed the fullyear guide and and revenue hit 12. 7 billion. In the luxury space, hermes reported a better than expected 17 jump in the First Quarter<\/a> revenue despite the slightly softer traffic in china. Deutsche Bank Highlights<\/a> the reporting so far this morning, but you see with hermes shares, showing a busy day this is the start of the thick of the earnings season in europe you had two Big Bank Earnings<\/a> it was a very busy day thank you. We turn attention back to the u. S. And wall street jim cramer weighing in to the stock market turmoil suggesting it may be time to raise cash as investors look to other sectors of the market outside of stocks. The bond market has gotten so compelling to so many people, that they want to buy some of the bonds. They need to sell stock to swap equities they have to raise cash to buy bonds. You need buyers to come in because so much is for sale. For many, that means cash the stocks to be able to sell and buy. Joining me now is gina sanchez. Good morning i want to get your take on what jim cramer said. The bond market is creating competition for the equity market right now. Yeah. I do think it is a real issue that you cannot ignore, particularly when you still have segments of the stock market whose price to earnings ratio have not priced in the fact that expectations for fed rate cuts have gone from six to four to two. Thats a big difference. That suggests that dividend yields will continue to have competition. Looking across the stock market, there are stocks that are vulnerable you say there are stocks that are vulnerable you mentioned the cuts from six to four to two magnificent seven is also moving from six to two. If you look back to april 16th, it feels like it was forever ago. Jay powell said rates will stay as high as they need to be if these stocks are supposedly not as sensitive to interest rates, why are they declining more than the general market during this time i actually think they are sensitive to interest rates. These are the highly valued stocks to the stock market generally. You also get some of the best growth the big challenge is where you have high valuation and not necessarily great growth profile. You look at apple for mexample. It is really hard to get excited about apple at this the valuation at this point in time. If you compare to nvidia, that is trading at roughly the same price to earnings for much, much better growth. Why would you take apple now the competition within the magnificent seven is going to get fierce you see tesla dropping out i think it is the mag six now. Tesla is struggling to maintain its mantle because now you have margins meeting lower price competition and abandonment of the lowpriced tesla that creates a challenge for high pe stock. S we are all struggling with the fed. We have gdp reporting today and expecting to show a slowdown and pce coming up tomorrow it is expected to show a decrease in your mind, are these Market Movers<\/a> i just mentioned what jay powell said on april 16th, are these Market Movers<\/a> . You know, it is jay powell who has preempted what is coming he set the stage for higher for longer the fed funds futures have adjusted what has not adjusted is the broad multiple across the stock market and that is why you are seeing quite a bit of blood in the streets at moment. Gina, thank you colorful language. Blood that streets a lot of people are scratching their heads. Gina, thank you. For more on what is driving the markets and trading day ahead, head to cnbc pro at cnbc. Com pro coming up on Worldwide Exchange<\/a>, throw out the 50,000 price tags because at the beijing auto show, we very broad appeal thats where we find our eunice yoon reporter thank you, frank. Elon musk elonhoped to revisit e idea of the affordable ev. He is not the only one more in a few minutes. With gold and copper prices pushing towards alltime highs, u. S. Gold corp is advancing its environmentally friendly gold and Copper Mining<\/a> project and creating american jobs in mining friendly wyoming. With a Proven Management<\/a> team and board, a tight share structure, and a solid cash balance, u. S. Golds portfolio of worldclass assets are creating American Growth<\/a> and homegrown Strategic Metals<\/a> as the us moves towards an electrified future. U. S. Gold corp. Welcome back to Worldwide Exchange<\/a>. Some automakers are backing out on the evs those in china are looking for a race to the bottom our eunice yoon is live from the beijing auto show. It looks like you are having a good time, eunice. Reporter i am, frank tesla is not at this show, but like elon musk, his chinese rivals are stressing the importance of affordable evs i spoke with the founder of nio. It will target more conscious budget families. It will be launched in the Third Quarter<\/a> and delivered in the Fourth Quarter<\/a> and priced at 30,000. Cheaper than the model y the hometown rival, xpeng, their ceo said 20,000 ev is on the horizon. It will be launched in june. Byd, known for the 9,000 car, launched affordable models 16,000 car and 12,000 model. This is highlighting an issue flagged by the treasury secretary janet yellen who came here earlier this month when she criticized china for overcapacity in several industries, including the car industry at the auto show alone, there are 278 evs and hybrids. Global data told me there are 139 ev brands in china alone and automobile mobility creates excess capacity is as much as 25 million units. Wow thats a lot of capacity that is what people are talking about. I want to ask that you are on the ground there, eunice, what is getting the most buzz and what do you hear about the apple rival . Reporter the answer is fone in the same. The xiaomi is 27,000 and like apple, the idea behind it is to get the Xiaomi Smartphone<\/a> users into the evs and have this Seamless Technology<\/a> experience the companys founder said so far they have 76,000 orders for the 100,000 target for the year. He kind of was trolling apple a bit saying 52 of the buyers so far are iphone users suggesting that people might want to make a switch. Eunice, i notice they really like smooth jazz at the beijing auto show. They are blasting it right now also, there are things for sale. You got me a tshirt at disneyland are you able to get me an affordable ev . Is there a way to get me one reporter the music is because they are trying to get us out of here thats their nice way of saying get out of here. Here, it is 6 00 thats what we do, too. Eunice yoon at the beijing auto show thank you. As we head to break, we are watching shares of tesla they are capping off the best day since january of 2022 with the more than 14 gain isterday. Its up. 25 right now. Well be right back after this break. What is cirkul . Cirkul is the fuel you need to take flight. Cirkul is the energy that gets you to the next level. Cirkul is what you hope for when life tosses lemons your way. Cirkul, available at walmart and drinkcirkul. Com. Her uncles unhappy. Im sensing an underlying issue. Its tmobile. It started when we tried to get him under a new plan. But they they unexpectedly unraveled their price lock guarantee. Which has made him, a bit. Unruly. You called yourself the uncarrier. You sing about price lock on those commercials. the price lock, the price lock. so, if you could change the price, change the name its not a lock, i know a lock. So how can we undo the damage . We could all unsubscribe and switch to xfinity. Their connection is unreal. And we could all unexperience this whole session. When we started our businessts uncalled for. We were paying an arm and a leg for postage. I remember setting up shipstation. One or two clicks and everything was up and running. I was printing out labels and saving money. Shipstation saves us so much time. It makes it really easy and seamless. Pick an order, print everything you need, slap the label onto the box, and its ready to go. Our costs for shipping were cut in half. Just like that. Shipstation. The 1 choice of Online Sellers<\/a>. Go to shipstation. Com try and get 2 months free. It is 5 30 a. M. In the new york city area 10 30 here in london loot a lot more onahead on worldwid exchange. Investors sound the alarm on big cash piles going toward Artificial Intelligence<\/a> investment for meta. Now the threeday win streak at risk. Futures are in the red across the board. Up next, on the docket, microsoft and alphabet we tee up the metrics you need to watch it is thursday, april 25th, 2024 you are watching Worldwide Exchange<\/a> here on cnbc welcome back to Worldwide Exchange<\/a>. Im Frank Holland<\/a> coming to you from cnbc london lets get you the check of the u. S. Stock futures all three indices in the red right now. The dow would open just over 120 points lower the big story this morning is tech and meta sinking ahead of the open and wiping out 200 billion of market value ahead of the open this comes after the First Quarter<\/a> results topped estimates, but numbers are overshadowed by weak guidance and updates on a. I. And the metaverse. Meta is lagging ahead of the open ibm is in second place down more than t81 and Zebra Technologies<\/a> the bond market here with the tenyear trading below the highest number since november. Look at the benchmark at 4. 64 we see the twoyear note which hit 4. 92 . Thats the set up. Lets turn back to the big movers we heard from meta and tesla microsoft and alphabet report today. Microsoft is up 40 over the past year on enthusiasm over the push into generative a. I. With the investment in openai and the features for windows copilot alphabet is picexpected to get boost from a. I. And ad spending. Joining me is the cio Portfolio Manager<\/a> at Northstar Asset<\/a> management good morning from london ill get right into it what are your expectations when it comes to earnings for alphabet and microsoft do you believe there is anything from the meta earnings we see as a read into the earnings it is going to be a very interesting day for earnings after metas disappointing outlook. One of the things we are watching and it will be a little bit different for microsoft versus google. Microsoft has continued to power ahead with 30 growth in azure the issue is can they continue the momentum they have seen a big pull from a. I. Come through with the cloud with the staff of applications and the github and copilot we saw 6 contribution from a. I. Applications microsoft is more about can they continue with the high costs you know, they have guided to the spend that they have been investing in a. I. And it is not going to be the a. I. Spend which is lineal and ramp up in cash. Less read through meta if you dont mind, we had a guest here in europe who said to be a leader in a. I. , you have to be a leader with the hyper scale of business. Microsoft and google are both expected to show strong growth with the Cloud Business<\/a>. How important is that growth we saw meta with Great Results<\/a> eps doubled year over year, but the invest m ment in a. I. Is as important for growth they are important. I think the difference is for microsoft a. I. Is an enabler for google, the Cloud Business<\/a> can pick up growth and show growth from a. I. On the contributions with the gpu here. Deaffinitely the cloud growth is important here okay. Lets talk about ad spending for a moment meta posted a miss when it came to the ad. Referee ad revenue it is a big part of the business for microsoft. Should investors be concerned about the digital ad spending market and outlook it is a bigger issue for google oand alphabet what happens is can they continue their low comp from last year. We are expecting 12 growth in the ad spending and ad business. Can we see that . That would give some comfort to investors that the search business is not getting disrupted by a. I you know, meta pointed to slowdowns from china thats something to watch as well we would expect alphabet to keep pace with what meta posted here as well. One other thing i want to bounce off you, since april 16th, jay powell said rates will stay higher as long asunder performed. The stocks are a bit more immune to rate pressure we see a steeper decline from them what do you make of that the tech stocks when you talk about microsoft and google have excellent Balance Sheets<\/a> we are not worried about interest costs rising for the companies and pressuring the profitability. That is not an issue the issue is the multiple. Here is where microsoft is more based on the multiple that microsoft is tradingat 35 time pe thats a little bit more on the sensitivity from rates less so far Google Alphabet<\/a> is a story of what is going on in their business and disruption in the search business all right nimrit kang, thank you preview of microsoft and alphabet earnings after the bell today. Coming up after the break, micron is set to receive billions from the chips archact. First the big money movers ford is moving higher with the strength of the commercial unit with the offset of ev losses it is lowering estimates and raising the adjusted Free Cash Flow<\/a> outlook. Whirlpool is increasing prices by 5 in north america due to sticky inflation and cutting 1,000 jobs to expand Profit Margins<\/a> shares down 20 in the last year and 30 off the 52week high align technologies beating First Quarter<\/a> estimates and growing revenue by 6 thanks to the asia pacific region. Shares up 5 right now well have more after the break. Stay with us o find a doctor when . What about zocdoc . So many options. Yeah, and dr. Xichun even takes your sketchy insurance. Xichun, xichun, xichun youve got more options than you know. Book now. Tamra, izzy, and emma. They respond to emails with phone calls. And they dont circle back, theyre already there. They wear business sneakers and pad their keyboards with something that makes their clicketyclacking. Clicketyclackier. But no one loves logistics as much as they do. You need tamra, izzy, and emma. They need a retirement plan. Work with principal so we can help you with a retirement and benefits plan thats right for your team. Let our expertise round out yours. Welcome back turning to news from washington. The Biden Administration<\/a> announcing micron is latest recipient of funding from the chips and science act. Megan cassella is joining us with more. Reporter President Biden<\/a> is heading to syracuse, new york to announce the micron deal they are set to receive 6. 1 billion. That money will help build out the factory in boise, idaho and in new york. The focus on production of memory chips in exchange, micron is investing 125 billion in the two sites over the next 20 years officials estimate the public and private funding should create 20,000 jobs in construction and manufacturing and indirectly support another 50,000 jobs along the supply chain. As part of the announcement, the Biden Administration<\/a> will announce hubs in new york to meet the Training Needs<\/a> in the Semiconductor Sector<\/a> and announcing hubs across the country. Places where we need more workers. Microns award is the seven pth th award congress has more to dole out from the original 39 billion pot of money with the amount of money starting to dwindle, we expect the next wave to be smaller in size and going to smaller suppliers along the supply chain. Gina raimondo told cnbc the focus from here is focus on chemicals. All of the input products we need to build chip manufacturing in the u. S frank. Again, announcing that micron is the latest to receive the funding from the chips act how does this fuel the growth in the u. S. Re this announcement is focused on memory chips and specific to high bandwidth these are crucial in training a. I. Systems and Large Language Models<\/a> the more we can build out memory for the systems, that means it can cover more of what the user wants. They will be designing and producing those in the boise plant and producing those in a major way and manufacturing in a major way in syracuse. Official says this is a crucial step to bring a lot of a. I. Development to the u. S our data team has been crunching the numbers. Chips act funding has just been run out. Is there a second chips act program to support investments so far theres a lot of talk about that we hear chips 2. 0. It is a difficult thing to get congress to sign on to something where you allocate more money where we have not proven the first pot has been successful. That is the argument we are hearing. I heard the term irresponsible thrown around if we dont do more the risk is if we just dole the money out, but dont shore up the investments, maybe they wont become sustainable or do enough we are not doing enough to bring Semiconductor Manufacturing<\/a> back here it is a big fight. Thats the argument were hearing. Megan cassella with the la latest great to see you thank you. Coming up here on Worldwide Exchange<\/a>, more on the big stock story of the morning meta a number of changing calls this morning. If you miss Worldwide Exchange<\/a>, check us out on spotifory other podcast apps. More Worldwide Exchange<\/a> coming up right after this. What is cirkul . Cirkul is the fuel you need to take flight. Cirkul is the energy that gets you to the next level. Cirkul is what you hope for when life tosses lemons your way. Cirkul, available at walmart and drinkcirkul. Com. With gold and copper prices pushing towards alltime highs, u. S. Gold corp is advancing its environmentally friendly gold and Copper Mining<\/a> project and creating american jobs in mining friendly wyoming. With a Proven Management<\/a> team and board, a tight share structure, and a solid cash balance, u. S. Golds portfolio of worldclass assets are creating American Growth<\/a> and homegrown Strategic Metals<\/a> as the us moves towards an electrified future. U. S. Gold corp. Welcome back time for the morning call sheet. We have more on the stock story of the morning meta a number of firms cutting price targets on the back of earnings. We start off with Goldman Sachs<\/a> lowering the price target from 555 to 500 per share Jpmorgan Chase<\/a> lowering from 550 to 4 480. We have stifel cutting down to 500 per share. And betterrnstein is pushine stock on gm higher which is up 1 . Key bank upgrading Sherwin Williams<\/a> to overweight it should focus on the volume recovery shares up. 50 . Time for the global briefing we start in japan with the yen hitting the 34year low against the dollar the greenback breaking above the 155 yen level for the First Time Since<\/a> 1990 that is fueling more speculation the government could move to shore up the currency while the bank of japan is holding the twoday policy meeting it would wrap up the intervention by the boj. And bhp makes a 39 billion offer for the company Anglo America<\/a>n it would give bhp more access to potash in australia. You can see shares up 11 . Bhp falling 3 several big European Companies<\/a> reporting earnings today. Deutsche bank posting the highest quarterly profit in 11 years as the Investment Bank<\/a> out performs nestle is looking at lower shares with higher sales and astrazeneca moving lower as well. And coming up on Worldwide Exchange<\/a>, the one word every investor needs to know today and one set to take it on the chin we are looking at if the magnificent seven is trading away we will be right back after this break. Norman, bad news. I never graduated from med school. What . But the good news is. Xfinity mobile just got even better now, you can automatically connect to wifi speeds up to a gig on the go. Plus, buy one unlimited line and get one free for a year. I gotta get this deal. Thats like 20 a month per unlimited line. I dont want to miss that. Thats amazing doc. Mobile savings are calling. Visit xfinitymobile. Com to learn more. Lifes daily battles are not meant to be fought alone. Were not powerless. So long as we dont lose sight of whats important. Dont be afraid to seize that moment to talk to your friends. Cloud, you okay . Because checking in on a friend can create a safe space. The first step on our new journey. You coming . Reach out to a friend about their mental health. Seize the awkward. Its totally worth it. Welcome back time for the wex wrapup. We start with ibm on track for the worst day since 2021 after missing revenue expectations the Company Announcing<\/a> it is buying hashi corp for 6 million. Apple losing the titgtle of biggest smart phonemaker in china. Microsofts Management Company<\/a> rubrik is set at an ip of 32 a share walgreens will start working with drugmakers to bring cell and gene therapies to the u. S. It will join the Specialty Pharmacy<\/a> with alliance rx. And ryan gosling proving be just ken is kenough with nearly 9million streaming viewers the best viewership since 2021 that was funny may the fourth be with you true moo is launching blue milk. The first time you can sample the notorious drink outside disney world that is next saturday, not this saturday here is what to watch today. We get jobless claims with gdp figures and home significants. We get reports from microsoft and caterpillar and comcast. The bank of japan kicks off the twoday policy meeting today investors get ready for the busy day of earnings look at futures here they are in the red. The dow is hitting the low of the morning. It would open up 150 points lower at the open. Nasdaq futures are dragged down by the stock of the morning which is meta. It is showing revenue guidance miss and a lot of concerns with the growth of a. I. Driven expenses Mark Zuckerberg<\/a> telling analysts on the call that he is not concerned with monetization. Meta is set to wipe out millions at open. We have Jenny Harrington<\/a> here with us. Meta is the stock story of the morning. What do you think of the results and Mark Zuckerberg<\/a>s comments which brought the stock lower and the mag seven trade . I think we are seeing reconciliation and reckoning the numbers were fantastic the problem is the story which is mark getting real we need to spend i have been wondering the last quarter with everyone was talking about a. I. Was mentioned. Im exaggerating here. The more time the company was able to mention a. I. In the conference call, the more the stock went up. I wonder if we will see more between meta and what reports next is investors asking a. I show me the money. Where is it coming from . In the case of facebook, meta, the numbers of the past quarter were incredible, but they are saying it takes a lot of spend thats not the money investors want to see with the premium valuations jenny, you talked about the wex word of the day. Rotate you are rotating your portfolio . We are not rotating portfolio. We are seeing rotation in the portfolios for example, in our growth portfolio, we have meta down 12 premarket we also have paradigm. You have a company down 7 year to date and guess what as of last night, that is looking like they reported good earnings and that is up 8 today. United rentals that is looking up 6 today. As of last night im seeing rotation within the portfolios equally interesting in our Equity Income<\/a> strategy, we see ibm looking down 8 because by the way, im annoyed with everybody picking on ibm they beat on earnings and those were great they came in with better margins. Again, they used a. I. A lot because there was enthusiasm in that maybe too much you see ibm down we will pivot away from a. I lets go to the report coming up today. 2. 2 for gdp what do you think the possible deceleration means for the market does it mean to a selloff or has jay powell set up the narrative of rates will stay higher for longer. Rates higher for longer i think a higher read would be negative for the market. We need some cooling we need to see some cooling in growth something the higher rates are starting to impact frank, i have to finish my last sentence whirlpool and Western Union<\/a> is up today back to gdp. Im looking for a negative number i want the rate cuts this year people want the rate cuts this year. It is less clear we have to wait for the gdp report Jenny Harrington<\/a>, thank you. One quick look at the futures before we let you go looking like the dow hitting the low of the morning looking like they open about 150 points lower right now that will do it for us we have squawk box coming up right now. Good morning more protests erupting on College Campuses<\/a> House Speaker<\/a> mike johnson threatening to pull federal funding and hinting of the national guard. Meta shares are tumbling we will tell you why investors are pulling back new rules requiring airlines to auto mamatically issue refun over vouchers. Its thursday, april 25th, 2024. Squawk box begins right now. Good morning welcome to squawk box here on cnbc we are live from the Nasdaq Market<\/a> site in times square. Im becky quick along with joe kernen and andrew ross sorkin. Lets take a look at what is happening with the u. S. Equities there is pressure taking place this morning after earnings reports that disappointed last night. Right now, you see the dow off 145 points s p futures tdown 27. Nasdaq down 145. A lot of that from meta. We will talk about that in a moment we have a slate of Companies Reporting<\/a> this morning we will get you the numbers. 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