marathon. salesforce and the one thing you need to watch for in that report. and what ai calls a big opportunity in autos. mark thee yoes is here. it's wednesday, may 29th, 2024. you're watching "worldwide exchange" right here on cnbc. ♪ good morning and welcome to "worldwide exchange." thanks so much for being with us. we kick off the hour as we always do. futures in the red across the board. you can see it looks like the dow would open more than 140 points lower. we're going to continue to look at the markets throughout the morning. so this action in the premarket. this is after the nasdaq. it crossed 17,000 for the first time ever and right now is sitting just below a fresh all-time high. ahead of the open we're checking some of the biggest premarket laggards in the s&p 500. you see zscaler down by 2.5% followed by pdd holdings, a chinese company. micro c.hchip tech down as well. we're watching the bond market, the beige book to be released at 2:00 p.m. eastern time. take a look at yields. we saw a big jump in yields yesterday. right now the benchmark at 4.56. this is about ten basis points higher. peter boockvar who is coming up in just a few minutes saying one of the big catalysts to the move to the upside is an auction. we'll talk more about that. also looking at the energy sector, oil coming off its best day in more than two months. you're seeing wti crossing what was a key sentiment level. right now up 0.75%. brent crude up, just about 0.75%. we're keeping a close eye on the airline sector, this after american airlines lowered its second quarter earnings forecast and said one of i its top executives will be leaving the company. you can see airlines stocks trading significantly lower, down more than 7%. that is your morning setup. let's get a check on the top corporate stories. silvana henao is here with those. good morning. >> hey, frank. good morning to you. conocophillips is in advance talks to buy marathon oil that could value marathon at just over $15 billion. a although a deal exists, it could fall apart. meanwhile cathie wood is one of the investors who just scosc scooped up a stake in xai. according to bloomberg, the stake representing about 2% of ark's holdings. and a u.s. judge is rejecting amazon's request to dismiss an amazon suit. the lawsuit which was first filed in june of 2023 accuses amazon of deceptive practices, intentionally making it hard for consumers to cancel their prime accounts, frank. >> thank you very much. we'll see you a bit later in the show. back to wall street, futures are lower that saw the nasdaq close at a record high. gains from nvidia potentially overshadowing concerns about rates, inflation, and the economy as investors await the beige book meeting today, gdp tomorrow. there's a chance of a 10% chance of a cut in july. despite that, the nasdaq is up 6.5% during the same time the tech trade continues to dominate. let's talk more about this with peter boockvar. he's also a cnbc contributor. always reading your notes every day, the boock report. thanks for being on. >> thank you for having me on. >> the rise in bond yields, is that why the future is so much lower? you mentioned the view for the five-year auction. >> i think that triggered it. also in the last couple of weeks, we heard about the fed minutes that reflects a committee that still is not ready to cut interest rates. i think that want to cut interest rates. they're looking for every reason, they just can't find one just yet. so i think every time we get excitement over the possibility, we get declining yields and then we get a reality check, a backup in yields and you throw in poor auction as you mentioned and we have the 10-year yield back to 4.5%. which seems to be a trigger line. >> it seems to trigger some selling in the market. by the way, peter, i think you may really kind of encapsulate the fed and the market. you say you're looking for a reason to cut. the fed officials don't seem to be looking at it like that. we're going to get insight on how the economy is doing. what is the impact on a 10% rising yields that partly, at least, has an impact on the futures? >> the thill i'll be watching for is, yes, i'll be focused the inflation aspect, but, if there is going to be a trigger for a fed rate cut, it's going to be weakness in the labor market. i think we've seen anecdotal evidence, we've seen things here and there that's pointing to a slowdown in the demand for workers. not necessarily a notable pickup in firings, but a slowdown the hirings. that's one aspect i'll be most focused on. if the unemployment rate gets above 4 pnlts 5%, 4.1, 4.2, then i think you can confidently say the fed will be cutting interest rates under that scenario. >> for the last few weeks we've been looking at whether it's the earnings or fed driving the mark. it seems like it's the fed driving the market with now it being tech versus the fed driving the market. you're looking at inflation when it comes to commodities, tech driving some of this commodity inflation. quarter to date, copper is up 20%, silver up 30%. a lot of that is attributed to data center spending. to your mind, this rise in commodities, how does that impact fed? how does tech continue to impact the market? >> it very much complicates the fed's job when you see the c or b index encapsulating a lot of different commodity prices gong up. if you look at gold, gold at a record high, what central banker can ignore what's going on in gold? i think that would be tough to deal with. you talked about the industrial incrementals. iron prices that have incrincre, alum nugs, natural gas prices have gotten a lift. that makes it difficult. even if the fed wanted to cut, that commodity price lift keeps sort of a big underneath inflation and makes their job even more difficult. the tech influence, yes, in terms of the demand for copper, building out data centers, the need for raw materials in evs. for sure that's going to be a factor as well and lifting commodity prices, and we remain bullish and long now. >> in your mind, the tech or the fed driving the market now ta we're pretty much done with the earning season? >> i'm going to take the easy way out and say both. >> really. >> the 10-year yield back to above 4.5%. the rest of the market is now lacking again. >> peter boockvar, also ways gr to see you. for much more on what's driving the market and the trading day ahead head over to c cnbcpro.com/pro for exclusive ivg insielts and analysis. we have a lot more coming unincluding the one word investors want you to know. shares of pita and cava shares are loweringing and american airlines dials back expectations for the current quarter. we're going to look at whether the consumer is to blame. and later, former ford ceo mark fields is going to be here to weigh in. we have a busy hour ahead on "worldwide exchange." stay with us. 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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. welcome back to "worldwide exchange." american airlines cut its second quarter guidance after the chief offer declared he's leaving next month. it's down from a year ago, down from a previous forecast of no more than 3%. future estimates lower to a range of $1 to $1.15. the estimates were 30. united airlines, delta, y southwest, and jetblue all falling. leslie joe sefs is right here in the studio. thanks for coming in. >> thanks for having me. >> what's going on? i'm looking at the tsa. they say friday was the busiest day ever, 2.5 million people in the air. it seemed really strong. what's going on? >> this is a pretty big miss on the revenue. american a month ago was guiding for strong but not this bad for their unit revenue growth to come out and double what the unit revenue decline is going to be year over year, that's not what we're seeing from other major airlines. that's kind of a divergence there. >> let's talking april. they say the planes aren't safe, saying, you know, the pilots need to be vigilant, there's tolls left here, a really rough month. then we see them lowering their guidance. i'm not familiar with their history. obviously during the pandemic we saw big disruptions. how common is this? >> it's not common. just a month ago for the guidance to change this moptd, it's very unusual. the ceo of american airlines is going to be at the bernstein conference in a couple of hours. he'll be asked lots of questions like what didn't you see that you see now that your guidance for q2 is falling? >> one thing we saw over the holiday weekend, a lot of delays. not just in the new york area but overall in the system. i remember last christmas southwest had a lot of delays. that weighed on margins and earnings overall. anything similar like that with american? any issues with delays? before we hear from the ceo latter today that we can look at and go, oh, that's probably it? >> american airlines has made a big change. the ceo ispart of the new strategy to sell directly to consumers instead of for corporate bookings and things like that. you push little more in that realm. they're asking are you losing money on the table that united and delta might be getting? those questions are likely to come up and robert isom will be answering that. storms and blizzards, we'll be able to predict a little more. what are you seeing when it comes to the indices overall and pricing and demand? >> it depends where you are. american, united, and delta have big international networks. probably delta and united are the standouts at this time. demand to europe is sky-high. they're seeing a strong summer. if you've been to europe, it's kind of wall to wall. >> i was in europe for a month. >> all you hear is suitcases along the cobblestone. i came back from europe myself and it's very crowded. it depends on which airline you ask. it has opinion a drag across the board with a lot of airlines. >> kiemtd of a wait and see-mode. we'll be looking forward to your story. it will be on cnbc.com later today as well. thank you very much. time for a check on this morning's headlines. outside the world of money and business. nbc's frances rivera in new york, great to see you. >> good morning, frank. we start with the gazan ministry who says at least 21 palestinians were killed in an israeli strike outside rafah. the attack happened in a hooumt safe zone, something israel denies. it comes days after scores were killed in an attack on another tent city. meanwhile as israeli tanks come into rafah, they say they have not. trump trial deliberations lasted until 8:00 p.m. in a few hours the judge will give the jury their instructions and the deliberations will begin. spacex september a rocket to orbit launched its earthcare mission. this marked the seventh flight supporting the mission. you're up to date on the wednesday morning, frank. >> frances, thank you. good to see you. as we head to break, it nvidia trading at record all-time highs. the company nearly $1 billion away as apple is the most. they haven't been this close to taking over apple cap since 2009. again, pretty close. atems like $100 billion isn't th much anymore. much more "worldwide exchange" coming up after this. the personal ekg device, you can check it from home using your smartphone. i use kardiamobile every day. sometimes twice a day. every morning i check, make sure i'm in good shape. and it makes me feel pretty good about my heart condition. it's a complete game-changer. i mean, you might as well be in a doctor's office. there's a way i can communicate with patients now in a way i never could before. they have their own ekg in their pocket. with kardiamobile, you can take a medical-grade ekg in just 30 seconds from anywhere. kardiamobile is proven to detect atrial fibrillation, one of the leading causes of stroke. and it's the only personal ekg that's fda-cleared to detect normal heart rhythm, bradycardia and tachycardia. having kardiamobile, it's a peace of mind for me. because you can't see your cardiologist every day, but you can see your kardiamobile every day. checking your heart anytime, anywhere has never been easier. don't wait. get kardiamobile today for just $79 at kardia.com or amazon. people couldn't see my potential. so i had to show them. i've run this place for 20 years, but i still need to prove that i'm more than what you see on paper. today i'm the ceo of my own company. it's the way my mind works. i have a very mechanical brain. why are we not rethinking this? 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[ bird squawks loudly ] to a pet shop. meg's moving company uses t-mobile. so she scaled down her fleet to save money. and don's paying so much for at&t, he's been waiting to update his equipment! there's a smarter way to save. comcast business mobile. you could save up to 70% on your wireless bill. so you don't have to compromise. powering smarter savings. powering possibilities. york city area and here's what's on deck. nasdaq crossing 17,000 for the first time powered by nvidia. futures are pointing to pressure at the open. the latest test for tech with business software giant salesforce. we're going to tee up what you need to watch. and rallying the troops. elon musk taking fresh steps for support on his massive pay package. it's wednesday, may 29th, 2024. you're watching "worldwide exchange" right here on cnbc. ♪ welcome back to "worldwide exchange." thanks for joining us. we pick up on the u.s. dow futures after nasdaq crosses 17,000 for the first time. futures in the red, pretty close to the lows in the morning. looks like the dow would open 173 points lower. we're also watching the bond market as today's beige book releases it at 2:00 p.m. eastern time and the fed and the possible rate cut path forward. taking a look at yields, they've risen recently. we had peter boockvar on a bit ago. the benchmark at 4.56, rising about 10 basis points from yesterday and we're looking at the energy market, specifically oil coming off its best day in more than two months. right now wti crude above $80 a barrel, up 1%. brent crude at 85% a barrel. up about the same level as wti is up almost 1%. that's your morning money setup. now we have to get a check on this morning's top stories. >> good morning to you. merck is reportedly close to a deal to buy eyebio. merck would pay that amount in cash up front and could make an additional $1.7 billion in milestone payments. eyebiois developing a drug to treat macular degeneration. a parent company of former president trump's social media platform is asking louisiana to open an investigation into potential market manipulation around its stock. a letter from trump media and technology to the state's financial regulator says a large number of shares traded over the past 30 days has been short sales. that's led to higher volumes of failures to deliver which occurs when one party in a contract doesn't meet their trading obligations. and elon musk is offering tours to tesla's giga factory who will vote on his proposed pay package. this is his latest effort to rally support for compensation, which was originally approved in 2018 but was struck down by a judge earlier this year. the tours, which will be led by musk and other tesla executives will take place on june 12th. that's one day before the annual shareholder meeting whelp the results of the vote will be announced, frank. >> silvana, thank you very much. turning now to what could be one of your big "money movers" today, salesforce issues results. shares are flat since the company announced its merger would not happen. margins are expected to improve to just over 32% this year. the number one metric to watch will be current remains performance operation or crpo. that's the total contracted revenue for products s or servis yet to be delivered to customers. this is seen as a read on the adoption of the company's ai assistant. they say, quote, unquote, interest in crm ai solutions remains very high. joining me now is
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