it is 5:00 a.m. at cnbc global headquarters. i'm frank holland. here is your "five@5." stocks coming off the best week since move earnings alert investors gearing up for the busiest week in headlines. regional reckoning federal regulators takeover a troubled pennsylvania lender republic first moofrkelon musk makes an unexpected visit to china and

gets a win with tech. trouble in the c-suite as paramount's executive is looking for the exit it is monday, april 29th, 2024 you are watching "worldwide exchange" here on cnbc good morning welcome to "worldwide exchange." live from cnbc london. we kick off the check of the futures with the nasdaq and s&p coming off the best week since november we are in the green across the board. it looks like the dow would open 60 points higher a bit off the highs of early this morning you see they are in the green this morning huge gains in tech and communications thanks to alphabet stocks with earnings last week. the company opening with the

market cap above $2 trillion for the first time ever. shares are pulling back this morning. we are checking the nasdaq 100 pre-market gainers look at the stocks that are gaining in the pre-market. we are seeing -- give us a second to pull those up. tesla at the top of the list after striking the deal in china. shares up 6.5% that is followed by apple. reporting earnings this week astrazeneca is in third place at 1.5% all this ahead of the fed decision and jobs report the bond market with the ten-year note at 4.62. it is important to note that the two-year note is close to 5% the oil market is pulling back a bit this morning with the oil market brent crude is down .6%.

wti is trading at $83.60 a barrel that's the money set up. let's see how europe is shaping up with arabile gumede he has returned to "worldwide exchange." a mostly positive day. our guest recall said earlier i g goldilocks environment >> they will cut rates soon. june is the anticipated date which is locked in across the board when you speak to ecb council members. you see marketing moving significantly higher we have the french and german market hitting record territory. we are still watching the ftse 100. 8,180. significantly up on the back of some positive numbers coming out just last week we do have the big deal in the mining sector. bhp making acquisition notes as

it looks to buy out anglo american it is considering a new order with regards to that ibex in spain is down .13% in corporate news, philips is speaking out after the litigation issue and now agreeing to $1.1 billion settlement to the ventilator issues that moved the share price higher 37% in the day's trading, frank. >> arabile, thank you. let's check on the top corporate stories with silvana henao at cnbc headquarters >> good morning, frank federal regulators seized republic first bank and sold to fulton financial in what is now the fourth high-profile bank failure since last year and the

first of this year fulton bank is assuming the $4 billion in deposits and $6 billion in assets. that is smaller than $229 billion in assets once held by republic first at the time of its failure. pennsylvania based fulton bank add $28 billion in assets and 200 locations in pennsylvania and new jersey and delaware and maryland the deal doubles the size of the market and keeping assets below $50 billion. tesla clearing two regulatory hurdles when it comes to launching the self-driving tech in china. ceiling a deal with baidu for mapping and navigation functions and passing a key data privacy requirement by beijing the move comes after elon musk

made an unannounced visit to china over the weekend where he met with the country's premier li and discussed everything from u.s. and china trade relations to the competitive ev landscape across china nvidia ceo looking for the potential of artificial intelligence speaking of cbs, he said human jobs will not disappear because of a.i., but it will open new u doors. >> in some areas of drug disc discovery, we need artificial intelligence to explore the universe >> nvidia shares are down about 3% over the last month, but are still up 77% this year and 200% over the past 12 months.

frank, we are seeing .50% up in the pre-market >> silvana, thank you very much. see you later on. turning attention back to wall street. triple threat of earnings and the fed and economic data out this week. one-third of the s&p 500 reporting as we hit the halfway point of results jay powell and company are expected to hold steady with the latest rate policy decision on wednesday and the central bank is dealing with high inflation we close out the week with the monthly jobs report which is expected to show strength in the labor market after the massive surprise beat last month for more, let's bring in vince larusso. vince, good morning. i'm going to get right into it what do you expect this week

we saw a selloff last week with the gdp data was softer than expected and the markets finished higher after the hotter than expected inflation. what is going on >> frank, hi we think the back drop is favor af able right now we are starting to see some of the cpi numbers and we think they are rolling down. if you look at the current data sets with cpi, we think the real-time reads are favor anne we are bullish on equities right h here >> i want to bounce something off you. still forecasting two fed cuts this year. also, forecasting the ten-year yield is ending at 4.05. do you agree with that outlook that we see cuts although it looks murky right now and bond

yields decline which fits into your thesis which is a positive setup? >> i think trying to be super precise is difficult with monetary policy. the equity market is anti anticipating a more accommodative fed. if you look at the interest rates the last year or so, it has not precluded equities from moving higher. we see the disinflationary environment and productivity gains from a.i. and technology and then you look at balance sheets spending will be difficult to increase in the environment. if it you look at the labor market, part-time jobs are taking over full-time jobs the tfed will lower rates that is favorable to equities. >> despite the volatility last

week with the s&p, the magnificent seven is up 5% does that so lidify the case tht the mega-cap tech is the place you want to be >> that's a good question, frank. it may be both the mega-cap tech names are important for the strategies technology as a sector is large because it generates significant amounts of cash flow th we are seeing a broad ening of the market going out of tech and finding interesting ideas in other sectors, we don't think that the mag seven or what used to be faang is the market research to

pay dividends. >> vince, great to see you thank you very much. for more on what is driving the markets on the trading day ahead, head to cnbc pro for insight and analysis. more to come on "worldwide exchange," with the one word every investor needs to know we will see if the rally is moving with amazon and apple reporting this week. there also may be valuation trouble this week. and bob bakish may be seeing the door today alex sherman is here with the exclusive report. and more on elon musk and the surprise trip to china ilg ave a report from beijin stl ahead. it is a very busy hour when "worldwide exchange" returns stay with us

welcome back this is a jam-packed week for earnings with 175 companies in the s&p 500 reporting results. investors may focus on two massive companies that can make the markets sink or swim in any quarter. apple and amazon amazon, the analysts are looking for it to become a bigger media company. for apple, weaker demand in china and the position in the a.i. arms race the earnings the magnificent seven last week over the heavy spending on a.i., the group packed on solid gains overall.

let's talk about this with allison porter at henderson. looking at the top holdings, more than one-third are the magnificent seven names. are you sold after last week's performance especially with the magnificent seven gained 5% and this is where you want to be in the equity markets have you shaken off concentration of risk? >> good morning. i think the magnificent seven term is created by media it is no more or less. we believe this is a stock pickers market here. these companies differ not just in terms of growth rate and valuation, but in terms of capital intensity. that is important. nvidia employs 22,000 people amazon which reports this week employs 1.5 million people

capital intensity is important with growth prospects. they all have strong cash flow profiles we are stock selective in terms of the magnificent seven that we have and own in that top ten >> you are stock selective you mention valuation. tech is trading at 26.5 times forward pe with the magnificent seven and tech names are oused 24 times with forward pe s&p at 20 times forward pe is that too rich for the companies and exposure to a.i. and strong earnings in your mind >> first of all, you have stronger than average balance sheets when you compare these to many of the large cap consumer stapl names, these are cash catalysts with the buyback stocks. we have seen meta in january and

alphabet follow suit last week and starting to introduce the dividend also, i would note that over the last quarter, we expect to see that again this quarter is focusing on margin opportunity we think the structuring efforts that were made last year would be a better than operating margin for these companies >> i want to hit on the two earnings coming up let's start with apple concerns about china weakness. what are your overall expectations >> we are a long-term investor apple is a wonderful company they led in the past with the waves from the mac and mobile internet they are never first and they do

tend to be lagging i think this quarter, generally, the focus is in china weakness we think investors are also looking at beyond this quarter where i'm thinking about when apple is able to provide co compelling devices to position it well for the next a.i. wave up to now, we have not seen that so far that would be out before we move on that. >> also amazon reporting this week what do you expect for the cloud business and a.i. business >> three big drivers amazon is a great benefit with the higher margin businesses which are growing faster we have seen from alphabet and azure. we expect to see strength in cloud and advertising business

with meta growing faster than alphabet we will see strong moves in adver advertising. we expect to see the strong operating margin come on in leverage with the retail business that ecommerce business and operating margin leverage can be helped by the leverage in the advertising business >> i heard a lot of people say they are watching closely with margin and possible expansion with the magnificent seven names touting the a.i. products. investors are expecting to see it alison porter, thank you coming up here on "worldwide exchange," the latest fed survey is out today and it spells trouble for jay powell and the policy cmieeomtt bill lee is here to weigh in stay with us

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a deadly tornado outbreak across the south over the weekend. five people were killed and 100 injured in oklahoma. oklahoma was opening a shelter to assist residents and the governor declared a state emergency. in los angeles, pro-palestinian protesters clashed with ucla students on

carbon campus police have been accused of the heavy-handed response. the timberwolves became the first team to move to the next round of the playoffs. it closes out a wild sunday of post-season action james harden erupted in the duel in dallas to give l.a. the win the series is split at 2-2. the knicks star's 27-point p performance means they are one win away from bouncing their opponent in the post season. frank, back to you. >> i would smile usually on the

toss back, but philadelphia is my team. richard luiu, good to see you. have a great day we are watching shares of paramount global which is set to report after the close today as it negotiates with skydance media. alex sherman is joining me with more on that your sources are telling us of a shakeup that could happen today. >> today could be a landmark day for parmamount global. we should know about bob bakish' fate exiting the company it comes on the same day that paramount global reports quarterly earnings bob bakish usually runs that earnings call. he will not be on the call, i'm told it throws the company into

near-term disarray without a ceo. he will not be replaced by a formal ceo for the long-term, i'm told because the company is in the middle of merger talks. if they complete a deal with skydance, david ellison would take over as ceo if a deal doesn't get done, the special committee is likely to turn to a different deal apollo and sony have had talks and those could come together and make an offer this week according to one source. there are two options here >> according to reports, the apollo and sony deal is call for job losses and another structure deal i want to go back to david

ellison possibly taking over as the mergered company 60% owned by skydance and the other would be publicly traded what does this mean for share h holders? >> the reason this is happening right now is that the skydance media deal and paramount global is in exclusive talks gets sherri redstone out of the company. skydance takes over her controlling shares and merge assets with paramount global the common shareholder would be along for the ride it would change nothing for a common shareholder of paramount global other than the fact it is diluted of the new equity that comes in if it went for a full takeout of the company with apollo and sony, that could be better news for the common shareholder

they could get a big premium on the shares i would say one thing. if you believe in the david ellison and skydance camp, they can't be public about that, then you could say there is more upside in that deal because it is a publicly traded company and we get to capture. >> a lot to consider from the competing deals. paramount global shares up had 4% on the news that bob bakish is out ahead of the earnings report later today we hit on the shareholder and deal structure what about the streaming wars? what does this mean for the streaming deal and paramount global moving forward in the h media space? >> near term, it is probably status quo for the company you have to believe no major decisions will change. paramount plus stays as is and they report after the bell

on the state of paramount plus longer term, it is sony and apollo would have a grand plan that we don't know what it is yet. skydance media would say this is our plan they would keep paramount plus as it is, but maybe they look to merge with is some other streaming service or try to take it in a different direction to give it a little more juice. paramount plus has a lot of subscribers. 70 million plus. the problem is that it continues to lose money. that's why the shares have struggled. >> a lot of moving parts alex sherman with the latest story on cnbc.com. earnings call could be an interesting one. alex sherman, thank you. disappointed we don't see your piano in the background.

coming up on "worldwide exchange," apple looks to share the devices with openai. more "worldwide exchange" coming up after this.

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it is 5:30 a.m. in new york city and 10:30 a.m. in london. there is still more ahead on "worldwide exchange. stock looking to keep momentum with the s&p snapping a

multi-streak losing streak the earnings season is set to provide fresh fuel for investors. the fed's latest policy decision the central bank continues to deal with inflation as trader hopes of the rate cut continues to be pushed down the line. and elon musk in china making a surprise visit with growing competition from home grown brands it is monday, april 29th, 2024 you are watching "worldwide exchange" here on cnbc welcome back i'm frank holland coming to you from cnbc london let's pick up the half hour check of the stock futures with the nasdaq and s&p coming off the best week since november in the green across the board. dow off the highs from early this morning, but opening up 50 points higher. the sa&p and nasdaq in the green

as well. this is setting up for the busy week of earnings season with one-third of the s&p and 20% of the dow reporting. that includes apple and amazon and 3m and mcdonald's and others with u.s. stock futures from the green, we look at the gainers in the s&p 500 at the top tesla shares up 7% after the deal in china that was key for the data access. right behind that is paramount global ceo reportedly out as it mulls merger plans shares up 4% albemarle is next on that list we have the investors list ahead of last week's pce looking for second quarter growth and inflation 29% boosting the outlook to 2.1% which is up from 1.4%. the consensus inflation forecast is now seen above 3% from the

earlier of 2.74% and half of the respondents saying this isjust a blip and the other half saying this is part of the longer-term stall. this is all ahead of the kickoff of the powell press conference on wednesday joining me is bill lee from the milken institute bill, i want to get into this with you inflation is hotter than expected on friday and the pl markets closed higher. gdp was softer in the week we saw a huge selloff. what does jay powell and the fed members are looking at here? >> they are seeing the service sector inflation is hanging out at 4% and has been since december and hasn't budged a lot of that is housing, we understand, but also underlinin the shortage of skilled labor. that is what the fed is talking about that may be alleviated

if not alleviated, they will bring in rates with the tie supply the fed will not expect so much spending power with all of the job creation in the job market the market is focused on the payroll survey on friday which averaged $290,000 jobs per month. if you get the survey and the job creation is averaging 90,00 since january. the spending power generated by the job market may not be as strong in the past and not be as inflationary as people are afraid of here >> i want to stick with the job market for a minute. we looked at the downward revisions with the numbers we get the initial number and get revisions. i want to talk about services.

up 4% year over year goods have not changed back in the pandemic, bill, goods inflation led to hiking rates. how does this lead to shelter inflation which was sticky, but eased back a bit >> the numbers have not shown up in the data yet. the service sector represents 60% of consumer spending it is a big chunk of the underlining inflationary pressures. the fed has to assure we can get to 2%. when it is rising at a 4% pace and has been doing so since december, that is not giving the fed confidence we're on the way to 2%. >> i want to put you in the forecaster seat. this is a tough job for anybody here on cnbc how do you see the fed playing out for the year >> it is unlikely we will see a

rate cut until the service sector inflation come down they need two or three data appointm points before they are convinced. september or possibly the november meeting i doubt we see more than tw two .25% cuts. >> bill, great to see you. appreciate your time coming up on "worldwide exchange," elon on the ground in china. we are live on the ground if bei i beijing with what he hopes to achieve. more "worldwide exchange" coming up after this.

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after arriving on sunday and met with chinese leaders tesla boasted it was deemed co co comp co complying with the security rules. the local governments restricted tesla cars and now lifting those restrictions tesla's china vp posted on the social media that the discussion between elon musk and the premier had pertained to the importance of a.i. and autonomous driving as key to the future of evs. numerous reports are saying that tesla is very close or has a tentative nod from beijing for the full-self driving or fsd software for china and the chinese tech giant baidu would provide the mapping data baidu and tesla are not

commenting on this musk has been aiming for beijing approval to allow the data to be transferred overseas to help with the algorithm for autonomous driving back home we would see tesla capitalize on the push to promote evs as well as autonomous technology to strengthen his technology back home >> eunice, i see reports that tesla was part of the first automakers that met the standard are any of the companies pressuring tesla on market share or price and did they meet the requirement? >> reporter: byd had also met compliance, but no other foreign company has here this is interesting in what it means for beijing. it looks they are seeing tesla

as a leader in areas they want to be leaders in with autonomousing driving and evs and a.i. we saw that he met with the chief of catl, the battery maker here and he met with the chinese trade agency chief who was praising him for his supply chain. of course, here in china all of that really suggests that they see him as very important for their own move to try to promote their technology worldwide. >> eunice yoon live in beijing thank you. coming up here on "worldwide exchange," shares of apple on the move as the tech giant gets some love ahead of results this week we have the morning call sheet coming up next more "worldwide exchange" coming up after this break.

welcome back market flash here for you. we are watching norfolk southern and cleveland-cliffs it is backing ancora holdings with the new ceo at the railway. the outcome of the proxy fight will have no impact on the customer shares of norfolk southern are flat time for the morning call sheet.

we start with bernstein upgrading apple. moving it to out perform bernstein says the tailwinds and artificial intelligence sets up apple for the strong iphone 16 cy cycle. shares up 1.75%. and jeffreies is downgrading southwest. shares of southwest down 2.5%. barclays upgrading at&t rating to overweight barclays citing a mismatch with the execution for the move shares up 1.5%. time for the global briefing japanese yen moving to $155 per dollar this shows a government

intervention the stock lost negligencative v. and l 'occitane is looking for a buyout deal. blackstone acquires hipgnosis. it previously invested in performance rights with the portfolio including bob dylan and adele. coming up on "worldwide exchange," one word every investor needs to know today and our next guest doesn't waiver on the bullish view for stocks. we'll be right back after this break. meets bold new thinking. to help you see untapped possibilities and relentlessly work with you

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welcome back to "worldwide exchange." time for the "wex wrap-up. we start with federal regulators seizing republic first bank and selling to fulton financial. it is the fourth high-profile bank failuresince last spring. fulton bank is assuming the $4

billion of deposits and $6 billion in assets. nvidia ceo jensen huang spoke with "60 minutes" and says human jobs will not disappear with artificial intelligence >> we are hoping it does thnings to surprise us with drug discovery and designing better materials we need a.i. to help us explore the universe in places we could have never done. sources tell cnbc paramount is looking to fire bob bakish as part of the merger talks with s s skydance. and bhp is looking for a revised deal for anglo american. elliott management is

investing yen in sumimoto. apple isrenewing suggestions with openai to use the tools for the iphone after talks subsided. and nike will change the major league baseball uniforms the uniforms are a nike issue with the company innovating something that did not need to be inn voe innovated 20% of the dow is reporting this week and we are keeping an eye on the fed with the economy with the latest monetary policy meeting tomorrow and wednesday we get key pieces of economic data with the april jobs report on friday. earnings and the fed taking center stage again as the market

eyes a positive session. bob pasani has more. >> earnings are coming in ahead of expectations. the bad news is future earnings could be threatened by slower economic growth and sticky inflation. despite the concern of high are for longer interest rates, first quarter interest rates are 5.6% above the same period a year ago and companies are beating estimates by a large percentage. nearly 10% more importantly, for the rest of the year, analysts continue to project growth in all three remaining quarters for the year due to the strong jobs market and resilient consumer the s&p 500 is 3% from its historic high in march and even that modest drop is due to investors taking down the multiple known as the pe ratio the multiple is how much

investors are willing to pay for a future stream of earnings and dividends. when interest rates rise, it makes the future stream of earnings less attractive investors are willing to pay less even if the earnings don't change earnings have been stable because the u.s. consumer is still spending and jobs remain plentiful. look at the comments from the visa ceo consumers spend across all segment from low to high it has remained stable our data does not indicate any meaningful behavior change across the consumer segment. american express agreed. ceo agreed as well i think consumer spending is relatively strong. look, as long as that holds up, that consumer, earnings should hold up as well. back to you, frank >> thanks, bob joining me now is victoria

greene she is a cnbc contributor. let's get this started what is the "wex" word of the day? >> i had to do a derby word because of the 150th run for the roses on saturday. my word of the day is mudder excel in tough conditions. i think investors want to look for good mudders in the portfolio. resilient and quality and cash flow and balance sheet if we hit a rough patch, you need a mudder to see your way through. >> you are all about the mudders. it sounds like you are saying we heard earlier. a stock pickers market i want to go to your pick right away the earnings report with amazon this week. you are bullish with amazon. it is related to somebody bob referenced visa and american express earnings visa with 16% transactions being increased. why is that a big read with

amazon with so much spending shift from goods to services >> they are still selling goods. retail sales are strong for q1 we are bullish the sales numbers will come in we know consumers spent a lot of money in q1. amazon picked up that spend. i'm watches the temu and shein i think amazon will blow it out of the water i think aws is going to accelerate they are adding ads in prime if they have everybody there saying i'm not willing to spend $2.99 a month in ads, that a huge business for them that could be a 100 billion pickup for them. everybody spent money in q1 and a lot of people spent money on amazon myself included. >> i want to get to the ads.

it is big for the mega cap tech earnings the estimate for amazon digital business is a 20% increase year overob year. are you concerned to grow ads at that level >> it is still very new. i think they are baby stepping their way in if you look at the ad placement in on the rollout on prime, meta did not have prime to roll out on and this is a new way of exposing ads. let's say 70% of the prime members watch prime tv that is a huge pick up they are pushing into the nfl and live sports. we are seeing more lineal tv come to the streamers. it is huge beyond the retail side >> we have to go here. i need one quick answer. what do you expect on wednesday? >> i think it will be hawkish

jay powell they want to keep options on the table. they don't want to make sure the market is not front running cuts powell is data dependent >> okay. victoria greene, thank you that will do it for "worldwide exchange." we have "squawk box" coming up right now. good morning hundreds of people now arrested over the weekend at pro-palestinian protests on college campuses and elsewhere we will bring you the latest. sources tell cnbc the paramount board is prepared to fire bob bakish this morning details ahead. elon musk making a surprise visit to china and a report this morning that beijing has tentatively approved the rollout of tesla's full self-driving features in that country it is monday, april 29th, 2024

"squawk box" begins right now. good morning welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. here we go another week let's check it out green arrows for the u.s. equities last week was a good one for most of the major advantages s&p and nasdaq had the best week since november you are looking at everybody doing well except for the dow tran transports closing below the 50-day and 200-day moving average we will keep an eye on that. dow futures right now are up 40 points s&p up 4 and nasdaq up 26. if you look at the treasury markets, we do have th