We get the unofficial kickoff to earnings season. Its thursday, june 27th, 2024. Youre watching Worldwide Exchange right here on cnbc. Good morning and welcome to Worldwide Exchange. Thank you for being with us. Lets get you ready for the trading day ahead. We kickoff the hour with a check of the futures. Look at futures. In the red across the board. All three indices down. The dow would open up 30 points lower. Today, the issue is big tech with the nasdaq off the second straight day of gains and another historic market cap milestone. This time around is amazon. Becoming the fifth u. S. Company to ever hit a 2 trillion market cap. Much more on amazon later on in the hour. Shares in the premarket, down slightly. We have the First Quarter gdp read today. The benchmark is ticking up 4. 33. We wait for the economic report and, of course, pce coming up tomorrow. That is the money set up. Lets see how europe is shaping up its trading day with Arabile Gumede in the london newsroom. Arabile, we see a lot of red on the board now. We certainly are, but, frank, if you are looking for direction, you will not necessarily find it out of these markets. We have seen the positivity stateside. It did impact things out of the market in asia. A lot of the semiconductor play from that side of the world. It is fairly mixed in. It is the lack of direction were seeing out of this side of the world. You are still seeing the tech players, although micron went down stateside, the european chipmake rs are moving higher. They are finding some gains. Down on the cac 40. The French Market ahead of the first set of polls that are set to open up this weekend in that poll in france. We are looking at that as the spanish market is down. 30 so far. The interesting news at play is the Swedish Central Bank and the riksbank is keeping the rates unchanged at 3. 75 . You have the retailers on the downward trend. 1. 7 weaker. Media moving up. 50 with utilitiies at the bottom of the stoxx 600. The gainers and losers with stocks, h m is down because it missed forecasts in the second quarter. Operating profit of 7. 1 billion. The fashion retailer expects sales to decline this month in part due to the weather, but warning its fullyear earnings goal could be a little bit harder to hit, frank. A lot of issues in retail. Levis in the u. S. Is down as well. Arabile, thank you. Time for the big money movers. We start with shares of micron under pressure with better than expected Quarterly Results. Investors look at the lofty exe expec expectations. Micron is getting demand from the a. I. Boom. Even with todays premarket action, micron shares are up 50 year to date. Micron is the largest memory chip maker in the u. S. Shares are down 6 th . Dont miss Sanjay Mehrotra on mad money tonight. Levis slides on sales miss. Consumers have been quote generally cautious and not spending a lot on discretionary items. A lot with raising dividends, levis is reducing reliance on department stores. Here is Michelle Gass on mad money last night. We delivered another double digit quarter. We were up 11 and driven off nine consecutive quarters of strong comp growth. The Federal Reserve says the 31 largest banks that operate in the u. S. Passed the latest stress test indicating they would be able to withstand an economic downturn. Assuming unemployment surges and values fall and banks will announce the repurchase plans tomorrow. The dow is on track for the first down quarter in the last three and the s p and nasdaq are solidly in the green. Take a look at the nasdaq on the screen. On pace for its first threequarter win streak since 2021. However, if you look at the trends, a pullback this year could be in the cards according to the dow jones data. For all you investors, the average stocks rarely go more than a year without a correction. Joining me now is vance howard from howard capital. Good morning, vance. Good morning, frank. Good to see you. Are we set for a pullback arreas the historic trends tell us . How would you play it . It is really tricky, at this point, frank because were in such a big bull market. The market is running ahead of itself on the technical standpoint. It is probably overdue for a modest pullback. I think it will be a viable pullback. We have two more trading sessions before we move into q3. I think were staying bullish. I saw Goldman Sachs raised the estimate on the s p to 6,100. That is a pretty bullish call. I cant disan agrngree with tha. Tom lee last night making the call to triple by 2030. I want you to listen and get your reaction. When you get to your prime years, 30 or 50, you are borrowing more money and making big life decisions. On top of that, we have a big opportunity for u. S. Technology companies because of a. I. Which is supplying the Global Digital labor with the shortage. These two forces are combining to, i think, power a decade of good stock returns. In context, tom lee is a big bull. I want your take on his take. I couldnt agree with him more. The other thing not talked about is the russell 5000. There are less and less stocks being bought by vitsz individuals and less opportunities. There is more con send indi concentration in the market. A lot of people dont want to own their own business and the other issue is the stock market. You have 6 trillion of cash sitting on the sideline. We monitor the cash build up religiously. That 6 trillion hasnt come down hardly at all. All of that money can be plowed into these companies that are profitable. I think on the shortterm basis, maybe we get a bit of a pullback here. That is not unreasooeasonable fe run we had. There are picks in biuy bio pharma. Why that pick . You have to start looking for other opportunities. Salesforce got beaten up pretty bad. Moderna and regeneron. If you look at the charts for a decent breakout, you need to explore other than just tech. Vance howard, thank you very much. A lot more to come here on Worldwide Exchange, and the one word that investors have to know today. First, getting set for nike today. Amazon is looking to take on temu and shein and the next source to do it. Well tell you on the very busy hour on Worldwide Exchange when we return. Stay with us. Daves company just scored the comcast business 5year price lock guarantee. High five high five. Im on a call. Its 5 years of reliable, gig speed internet. Five years of advanced security. Five years of a great rate that wont change. Yep, daves feeling it. Yes. But its only for a limited time. Five years . Five years. Introducing the comcast business 5year price lock guarantee. Powering 5 years of savings. Powering possibilities. Welcome back to Worldwide Exchange. We have a market flash on the yen. The currency sitting at a 37year low against the dollar. The last time the yen crossed the 160 mark in april, the Japan Central Bank intervened. We will have more coming up in the hour. The yen falling to a 37year low against the dollar. Time for a check of the top business stories with bertha coombs. Bertha, great to see you. Good morning. Good to see you, frank. Openais sam altman says he thinks the future of a. I. Is going far beyond existing data. Speaking at the 20th aspen ideas festival in colorado, altman adding people are going to use these tools to invent the future and its Economic Impact cannot be understated. I think the sort of point i was trying to make is it would double the worlds gdp which feels like reasonable to me and be in line with other technological revolutions. Yeah, we do think this is just going to be a massive driver of productivity and already at this early stage, seeing what people are doing with it to sort of vastly improve products and services. We should mention that Nbc Universal group is the partner of the aspen festival. And amazon plans to launch a new Discount Store taking aim at temu and shein. Allowing chinese sellers to ship directly to u. S. Consumers. The storefront which was unveiled yesterday, will feature a range of items under 20 a piece. And state street Global Advisers will launch its first cryptocurrency fund. State street is the Third Largest etf issuer in the u. S. O overseeing 4. 3 trillion of assets. Bitcoin has fallen 10 since the first and now trading well below 70,000. Frank. Bertha , thank you very much. See you later in the show. We get the economic read of gdp at 8 30 a. M. Near shoring is expected to be a ma major driver for gdp going forward. Domestic construction is overall spending. Jeffries out with a note saying it sees steel, concrete, rail and Real Estate Companies as positioned to benefit in the medium term. Joining me now to look at the stocks expected to see the biggest benefit is the ceo which manages rho. Good morning. Thanks, frank, for having me on the show. Lets look at the applied technologies and eaton corp. In your mind, what is the biggest upside for these stocks in the near term . How do you see the stocks performing . We still think were in the early innings of near shoring. The u. S. Is under estimating the near shoring and that is impacting the gdp that went to infrastructure or railway or manufacturing spend. Those numbers you show there are showing it has come back in the last two years. This is coupled with an urge to reshore and near shore. Primarily to reshore . Why reshore . Supply chain. Realizing the thirdparty action not there. We see reshoring and we see beneficiaries. It is really a trend that were in the first few years and covid accelerated that. Covid is not the catalyst for this. Why isnt the etf doing better if you dont mind me asking . It is lagging the Broader Market. Why are these stocks trailing the Broader Market . The etf is ahead of the s p 500 over a year ago without the magnificent seven. The year to date, the etf had a big runup in the second half of the year. Some of the manufacturing startups, frankly, were repriced. We think coming again in q2 earnings, we see a number of companies attractively positioned for a continued most momentum with these companies. Q1 was a bit softer. We are seeing q2 end strongly and we expect that to continue to q3. We talked about what is going in the u. S. , but near shoring in mexico is a big factor. Direct investment in mexico this year. 38 billion year to date. 35 higher year over year. How does that impact u. S. Companies . There are icompanies that ar not reshore, so they near shore. It is better than offshoring. It is still a Security Risk and Political Risk and protectionism risk. Companies will look at near shoring over reshoring. You see chinese manufacturers that cannot reshore. We think this is a trend thats not just going to benefit the u. S. We see this across the world. You see regional in asia. Moving from the supply chain in asia to vietnam. We believe the corporate beneficiaries is u. S. Focused. Thats what we see in the midwest. We see a tremendous amount of activity in states like indiana, michigan, kansas, texas and thats where we see it continuing. Maurits pot, thank you very much. Ceo of tema. Coming up on Worldwide Exchange, why millennials are saying no thanks to the stock market. Opting for a more lucrative investment in the long term. Were back with that story right were back with that story right after this chewy, a citi client, uses citis financial expertise to help drive its growth and keep its supply chain moving, so more pet parents can get. Ng they need. Right when they need it. Keeping more pets, and families, happy. For the love of moving our clients forward. For the love of progress. Welcome back to Worldwide Exchange. Im Frances Rivera with the nbc news headlines. A 24 hours in bolivia with the coup fails. It was called off due to the lack of public support. The attackers later pulled back as supporters of the president took to the streets. The insurrection was letd by th army general. And here in the u. S. , the public got a preview of the Supreme Court decision. A document relating to a pending case on abortion care was posted on the courts web site. The Court Appears likely to send the decision back to a lower court. That means women in idaho would have access to abortion during medical emergencies while the lawsuit continues to play out. The official decision on the case could be released as soon as today. Abortion will likely be a topic we hear about in atlanta. Thats where tonight President Biden and former President Trump will faceoff in the first debate in the tight race for the white house. The 90minute debate will feature muted mics with the other candidate talking and no live studio audience. Frank, you are up to date. Back to you. Frances rivera, thank you. Turning now to all of us have dreams to be rich and successful, but now a growing divide among the older and younger generations of how we climb that mountain. Robert frank joins with us the survey that shows it is not your fathers or grandfathers stock market. Frank, they wont be able to get above average returns with traditional stocks and bonds according to the study. 72 still have faith in the stock and bond portfolio, but asked about the growth, younger investors listed real estate first and crypto and then private equity. The same question to older investors, they picked domestic stocks first and followed by real estate and then emerging market stocks right behind. Younger investors have nearly three times more alternatives in their portfolio compared to xers and older investors. They have about half of the share of total stocks, only about 25 . The other difference, collectibles. The young are likely to collect watches and classic wine. Nearly onethird are interested in collecting sneakers. The younger investors see it as part of their investing strategy and much more likely to trade in and out of collectibles just like they would stocks. You can read more about the great wealth transfer in my new newsletter called inside wealth at cnbc. Com insidewealth. You are doing great stuff there. I want to get back to the younger investors with collectibles. Real estate makes sense and crypto. Collectibles. Is there a market for collectibles long term . I used to be a big comic book collect collector. They were valuable for a while and they dropped off the cliff. These are all opaque. With comic books or art or sneakers, every item is very different from the next. It is hard to really get a sense of the performance. If you look over the long term, five or ten years, a lot of the cat categories, especially art and classic cars, have done as well or better than the sdtock marke. All of the collectibles have derivative ways to buy them with the loans or funds that buy a bunch of sneakers or art or classic cars and you buy a share in that fund. Theres much more choice in terms of how you invest in these markets and more, importantly, y you dont have to have a lot of money. You can enter at a lower entry level because you dont have to have just 25 million for a picasso. You can buy a share. Interesting stuff. By the way, we are showing the chart. S p up 85 over the last five years. Robert frank, great to see you. As we head to break, we are watching shares of boeing. Federal regulators are accusing boeing of violating rules of not disclosing the report to the media. It is sanctioning boeing and referring the conduct to the department of justice for review. Well be right back after this break. 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. It is just about 5 30 a. M. In the new york city area and there is more ahead on Worldwide Exchange. Stocks are raising to the finish line as one adds to the mantle. Futures are facing a bit of pressure. Key to the market action. Nike is hoping to put a stop to the streak of under whelming results. The big banks are passing the stress test, but the better gauge how strong the sector really is. It is thursday, june 27th, 2024. You are watching Worldwide Exchange here on cnbc. Welcome back to Worldwide Exchange. Im frank holland. Lets pick up the half hour as we do with the u. S. Stock futures with the s p and nasdaq coming off backtoback positive sessions. They are in the red. The dow would open up 65 points lower off the lows of earlier this morning. Were also looking at another tech giant hitting a major milestone. Amazon becoming the fifth u. S. Company to hit a market cap of 2 trillion. The bit of a pullback this morning. Market cap still above 2 tri trillion. We are watching shares of micron under pressure despite the company reporting better than Quarterly Results. The Sales Forecast failed to beat the streets expectations. We are also looking at the bond market ahead of the third read of the First Quarter gdp. The benchmark at 4. 33. Ticking up a few basis points since yesterday. Also, the bond market probably reacting to the Inflation Report coming up tomorrow. Well talk a lot about tomorrow. Thats the money set up. Lets turn to the stress test for the u. S. Banks. The Federal Reserve says the biggest u. S. Banks get passing grades in the stress test. They maintained Strong Capital levels in the hypothetical recession with the double digit decline. In the scenario, the banks would lose 685 billion combined which is more than last ye