Transcripts For CNBC Worldwide 20240703

To fend off growing competition there. Lets make a deal. Bill ackman teaming up with elon musk and the x platform. It is monday, october 2nd, 2023 and you are watching Worldwide Exchange here on cnbc. Good morning. Welcome to Worldwide Exchange. Im frank holland. Lets start the week and the hour with the check on the stock futures on the back of the government funding deal. More on that in a moment. Futures are in the green across the board. Dow looking like it would open up more than 100 points higher. S p. 50 higher. Nasdaq is more than. 75 higher. As always, it is early. Stocks are coming off a tough september and tough Third Quarter. The major indices losing between 2. 5 and 4 . The s p notching the worst p performance in years. The bond market here with the tenyear yield. Still moving higher at 4. 62 . A lot of technical analysts said this is important about the direction of bond yields. Look at the twoyear note which is back above 5 . That is something we are continuing to watch. Here is wti with brent seeing the best quarter since q1 last year. Wti is above 90 a barrel. 91. 20. Brent crude at 92. 60. Up almost. 50 . Natural gas up over. 50 . We will have more on the price action on crude in a moment. That is the market check. Now we go to washington and the spending bill agreement at the last minute. That only provided temporary relief. Which have drew petrimoulx with more from washington, d. C. Reporter good morning, frank. This is a temporary plan and we could be in the same place in 45 days. For now, crisis averted. The motion to reconsider is laid on the table. Reporter as the hours ticked down and the shutdown seem inevitable. A twist. The bill is passed. More throops will continue t be paid and families cared for. Tens of thousands of air Traffic Controllers and transportation officers will stay on the job and get paid preventing delays. Reporter to secure the deal, Kevin Mccarthy used his party and democrats to pass the plan. It keeps the government running through november 17th giving them time to hash out deals sdpdeals. We avoided the shutdown. He had the courage to put the bill on the floor that got more democrats than republican votes. Reporter the deal secures funding for Disaster Relief and strips away money for border security. It does not include additional funding for ukraine which democrats wanted. I intend to file a motion to vacate. Reporter infuriated members are looking to vote mccarthy out. It sets up a power struggle similar to the 15rounding saga for the speakers gavel. President biden said he received assurances he would support more help for ukraine in a separate vote. For his part, mccarthy said any new funding would be tied to Border Securities at home. Im drew petrimoulx, nbc news. Thank you, drew. Turning attention back to the markets. It was a dismal quarter for stocks with the s p down 3. 5 . It is still firmly in the green up 11 . Take a look at this chart. S p is up. 25 . This indicates the tech names providing all of the gains. Lets talk about this with bill stone, the chief Investment Officer of glenview itrust. Good morning. Im looking at the magnificent seven right now. It is up 80 year to date. My question is is this sustainable . What does this mean about the direction of the markets . I would say looking at history, you know, some people would worry that you have a situation where those magnificent seven, frankly, fall apart and that crushes the overall index. That is not always the way it happens. Sometimes the market broadens out. There is no clear sign of that. Im optimistic we get broadening out. Maybe this Third Quarter season kicks off in earnest next week. You are finally going to snap, i believe, the streak of three straight quarters of yearoveryear declines in earnings. You will have positive earnings driven a lot by the magnificent seven, frankly. Hopefully we will see better numbers from other sectors as well. That means you are not concerned about the narrowness of the market . You believe this rally can continue with just seven or a dozen stocks . I think it has to broaden out to keep going. Im a believer in a. I. And the technology, but i would say we trimmed some of them on the margins just because they have extensive. You need to broaden out. That is what you have to hope for here. You touched on the earnings season that starts next week. We are on pace for the fourth straight quarter of declines. Expected to be down. 1 . What does that mean for the market if we come inline or we dont reach that . You know, the forecast is the forecast. It is. You know, typically, as you know, you can usually bet on us coming in somewhat above it. It doesnt always happen. Certainly we need some better earnings because what i would argue is pressuring the market and off the highs is really the rise of Interest Rates. I like the Interest Rates are low gravity of stocks. We have seen a sharp rise with the after inflation expectation. Real Interest Rates are the potent of the two. Those Interest Rates are a good competitor at the moment to stocks. You need the earnings side to lift you there. I think thats what you have to look for here. You are looking at tips. We are showing the treasury inflation protection index. Bill stone, thank you. Thank you. Time to get a check on the mornings top corporate stories with Silvana Henao. Silvana, happy monday. Happy monday, frank. Lets start with the headlines. Frank, talks with the United Auto Workers and automakers continued over the weekend. Shawn fain telling members not to let messaging from ford, gm and stellantis get them to give up the fight for justice. Fain made the comments while working outside the stellantis plant in ohio. Adding the automakers are trying to cause doubt with the membership and the leadership. The comments coming after critical remarks by ford and g ceos over talks with the union. The chairman of China Evergrande is investigated on suspicion of transferring assets offshore while the developer struggles to complete projects. This is according to the wall street journal. Had this comes after the developer revealed he was under police watch and suspected of committing unspecified crimes. Tesla rolling out the updated version of the model y in china. The car features minor changes to the exterior and interior. The price for the updated model y will remain at 36,000. That price war is continuing in china. It is. Tesla shares up right now. Silvana, thank you. A lot more ahead on Worldwide Exchange, including the one word investors need to k know. Later, the trial of ftx chief Sam Bankmanfried set to go this week and what others are saying as sbf heads to court. And apple looking for a fix that the new iphone is red hot reonall the wrong ass. A very busy hour still ahead when Worldwide Exchange returns. Stay with us. Welcome back to Worldwide Exchange. Taking a look at futures with the dow off the highs from earlier today. It looked like it would open 90 points higher. Lets see how europe is shaping up as its trading day is underway. We have Joumanna Bercetche with more from london. Good morning. Good morning, frank. European markets opened in positive territory this morning, but in the last 20 minutes, that optimism fizzled out with weak pmi numbers. We got the final pmi numbers for the month of september coming in line with the flash at 43. 4. That is a low level and continues to signal weakness with the Manufacturing Sector in europe. France and germany leading the declines. Spain and italy less so. The manufacturing weakness is widespread. Sectors are seeing green in the mining space with the likes of glencore trading up in positive territory. Banks with oil and gas showing positive notes. He healthcare is leading the decline. It is worth noting china and hong kong and india is out for the golden week on holiday. Perhaps the data there is bottoming out. The negative hand overnight, the yen is close to breaking 150. The bank of japan is offering a Buyback Program for wednesday. That is significant. Thank you, Joumanna Bercetche. Live in our london newsroom. Turning attention to the energy markets. Specifically oil prices. Look at brent and wti which are up. 50 . Both are coming off a wild month and quarter. Wti rising 8. 5 in september. The fourth positive nmonth in a row. Prices on benchmarks posting the best quarterly performance since q1 of 2022. For more on the prices in q4 and impact on inflation, lets bring in john kilduff. John, good morning. Good morning, frank. Great to be with you. John, i want to take you back a bit. Ten days ago, Jpmorgan Chase forecasted 150 a barrel brent crude. That wasnt until 2026. Clearly, they saw a big upward trend with oil prices. As we enter q4, first day of the quarter, do you see the same upward momentum . I dont really. We continue to see more Oil Discovered and put on the market. You know, prices we are seeing right now are as a result of historic moves by saudi arabia to constrain supply. The numbers are unbelievable to cut back. If that is what they have to9 9 oil. Certainly, frank, you know, these wild upside projections have gone nowhere over the past several years. Thats because it is a dynamic market. The United States production has cut way back. The other basins mature here now. Lets talk about the dynamics. We are getting into the weeds here. I want to talk about opec plus and saudis. You mentioned them a bit ago. Are you saying the change in direction from them . Murmurs in the market where they dont want the market to overheat. There is a meeting this wednesday from the opec ministers to set a slightly different course. The point here being if the saudis relent in the slightest, prices will retreat significantly again in response to any wavering on their part. Right now, they are positioning to generate 100 crude oil. John, thank you. We have to leave the conversation there. John kilduff, thank you. Coming up on Worldwide Exchange, tracking the technicals within the markets after a tough quarter. The signals that bank of america says is needed for q4. We are back on Worldwide Exchange in just a moment. Stay with us. were lucky to have this team working for us. Our therapists give their all each day, by helping those who need it most. We take great pride not just in the job our team does, but in them as people. Our people. And while were in the business of taking care of others. Its important our therapists know that with benefits from principal, theyre taken care of too. hi, im stacey, and ive lost 60 pounds on golo. With ben guitar music ncipal, theyre taken care of too. This belt i used to wear, way down at the first and second notch, its the only thing ive kept from before losing weight and im keeping this because im never going back. Meet gold bond daily healing. A powerhouse lotion that moisturizes, heals, and smooths dry skin. With 7 moisturizers 3 vitamins. And. New gold bond healing sensitive. Clinically shown to heal moisturize dry, sensitive skin. Gold bond. Welcome back to Worldwide Exchange. The next chapter in ftx is set to begin tomorrow. The jury selection in the Sam Bankmanfried trial is set to start. We have kate rooney with more on what they are saying as the story continues to unfold. Good morning, frank. We spoke with customers who lost millions on ftx and asked them to share their message ahead of the trial. What is my message to sbf if i could talk to him now . I dont know if it would get through to him, but i believe the worst thing he has done is the suffering he caused to millions of victims. I would tell sam it is great you are saying you want to make sure other customers are right. Do the right thing. Serve your time and pay your penalty. Do the best for your users. My advice is figure out what you can do to help all those people who lost their life savings in ftx. I dont know how you will do it or what you will do, but get it done. If i had a chance to confront sam facetoface, i would be curious to know what he is actually trying to do. Were you trying to do good or were you just a really bad person and promoted yourself really well to swindle ta bunch of people. The insiders tell all during the collapse of ftx. They tell us why they moved their funds and why they felt it was a safe place to put their crypto and now trying to get some of the money back. More from those customers on cnbc. Com. Scan the qr code and check it out right now. Frank. Kate, a sad story. Who will we hear from in the documentary and what insight do we have about the case . More from the customers who were hit hardest by this. You have the Institutional Investors like Anthony Scaramucci who will speak on behalf of the wall street types who invested in sam and ftx. Scaramucci had fascinating comments on sam and Sam Bankmanfrieds state of mind. He went to the bahamas after the collapse. The Top Executive who is the head of ftx u. S. Who worked closely with sbf. He was one of the few people who might know the psychology of the leadership and how he ran the business. Really interesting insight from him as well. A few angles there. Some indepth coverage of the story we have been covering for a year. It is hard to imagine it has been almost a year. We see the movements in the crypto market. Kate roonrooney, looking forwar it. Thank you, frank. Still on deck on Worldwide Exchange, the federal government filing a lawsuit over the data leak of the richest customers. And it is hispanic heritage month. Here is cocacolas Senior Vice President beatriz perez. My heritage is deeply rooted in family values and the businesses they own. Innovating science and tech are winning nobel prizes in chemistry. It also plays critical roles in Public Service from congress to the u. S. Supreme court to many other areas. Hispanic americans are and will continue to be a driving force for progress. Meet the portable blender we can barely keep in stock. Blendjet 2 gives you icecrushing, big blender power onthego. So you can blend up a mouthwatering smoothie, protein shake, or latte wherever you are recharge quickly with any usb port. Best of all, it even cleans itself just blend water with a drop of soap. What are you waiting for . Order yours now from blendjet. Com before they sell out again Morgan Stanley is partnering with the Womens Tennis Association to remove boundaries. because this game is for everyone. Cmon, were right there. Cmon baby. Its the only we need. Go, go, go, go ah touchdown baby touchdown are your neighbors watching the same game . Yeah, my 5g Home Internet delays the game a bit. But you get used to it. Try these. Theyre noise cancelling earmuffs. I stole them from an airport. Its always something with you, man. Great solid greek salad . Exactly dont delay the game with verizon or tmobile 5g Home Internet. Catch it on the xfinity 10g network. It is 5 30 a. M. In the new york city area. There is more ahead on Worldwide Exchange. Here is whats on deck. Stocks looking to shake off the worst month of the year as we kickoff q4. We will read the technical tea leaves as some say the market is at a critical juncture. And we are live in washington with the new battles shaking shape. And x marking the spot for billionaire investor bill ackman eyeing a deal for the social media platform. It is monday, october 2nd, 2023 and you are watching Worldwide Exchange here on cnbc. Welcome back to Worldwide Exchange. Im frank holland. Lets start q4 with the half hour check on u. S. Stock futures. They are in the green across the board. However, off the highs of earlier this morning. Dow up over 100 points. Now up over 50 points. S p and nasdaq also in the green. It is early. We have seen a lot of movement with the dow. Stocks looking to shake off a tough september and Third Quarter. Indices losing between 2. 5 and 4 over of the last three months. The s p notching the worst performance in a year. Right now it is down over 3. 5 . That is the monday set up. As we start a new month of trading, werk l are looking mor closely with bank of America Global Research chief strategy. Steve, thank you for being here. You gave us the research. Lets start off with something with the chart. The s p 500 chart. It broke below support at 4,330 last week. What are the charts telling you about the direction of the market . Frank, when you look at the market break in the key support at 4,325 or 4,335, that says prior support is a resistance going forward. If we have a good rally early in the day, we could test it. We will struggle with that level. October is a volatile month. I think we stall around that level and trend to the 4,200. Why is 4,200 important . Think about this. A rising 200day moving average and 50 retracement from march to july and where we broke out in june. If things get volatile and sometimes october is known for the volatility, maybe you need to a that retracement to 4,100. We think 4 sd,200 is reasonable. Just to be clear, 2todays 200day moving average is up here at 4,325. Yes. We broke out of the last august high and tested it. Here on the show, i know you watch, we see a lot of weakness seas seasonally, like a september slide for equities. You are looking at the 40day moving average. We dont talk about this often. Why is that meaningful . The next chart is the 40week moving average and 200day moving average. Cyclical trend is rising on this chart here. The 200week moving average which is the secular trend. We believe we are in a cyclical bull and secular bull. We like what is going on. We had a correction in the secular bull market. We move back above the 40week moving average. This reminds us of past periods. Covid, china trade war in 2019. Isnt that interesting . It is interesting. The correction here . Brexit. Trump getting elected. Finally, eurozone crisis. Right here, right now, if we do that and we do it successfully, rally here, really here. Perhaps we could go to a new high if this pattern stays in place. Were doing this afternoon historical precedent. One key issue is Interest Rates. Yes, of course. The question is when will people feel comfortable enough to say i want to invest in stocks and not just continue earning 5 to 6 on cash. If that turns, i think that happens. A different scenario. Technicals show a potential for the bullish upside for q4 . Yes. If you follow seasonal patterns through q3, you have a strong q4. The next chart right now. According to the research, one thing we need for the october rally is capitulation. Give us a sense of the vix. Give us a sense of capitulation in this instance. What is setting up here is this last week, people thought we had a climatic low. W we did not get a reading on the vix. Investors are more fearful now than three months down the road. That would move below one. That is the signal you need. We did get one last october no. Right in here is where it was with the close signal in march. I think right here, right now, similar to the s p 500, the threemonth vix versus the vix has resistance of 1. 01 to 1. 08. We get the capitulation signal or the vix gets above the threemonth vix. That would be the climatic signal. It happened last october as well. Guess what . It triggered a good seasonal yearend rally. We are set up for that. Im more confident when you get people saying im done with this. Lets move on to something else. Then they miss the rally. Thats what happens often. People may catch up. Very interesting stuff there. Stephen, looking at the technicals for q4. I have a feeling we have to bring you back in to see the next level of trends in the market. Thank you for being here. Thank you, frank. Great job. Time for the check on the top corporate stories with Silvana Henao who is back with those. Silvana. Frank, good morning. Approximately 4,000 United Auto Workers reaching agreement with the mack trucks over the weekend to significantly increase wages and continue benefits for employees and families. The temporary agreement which still needs to be ratified by the uaw comes as thousands of auto workers enter the third week of striking against detroits big three automakers. Bill ackman showing interest in the deal with Elon Musks X Corp and looking to raise 1. 5 billion or more and potentially taking them public. The wall street journal says the investment is a new class of special Purpose Acquisition Companies or spacs. Pitched two years ago by ackman with approval from the s. E. C. On friday. Ackman will likely have more on this coming up at 8 00 a. M. Eastern on squawk box. Apple issuing a Software Update to address complaints of the new model being too hot. It is normal for devices to feel warm when used for long amounts of time. The update will not reduce the performance of the new models, frank. I dont have that problem. I didnt get that new one. I havent upgraded. It is easy to save a couple bucks. Maybe ill wait for 16. Silvana henao, thank you. We turn our attention to d. C. And the drama in the cap capitol. Taking the government to the cliff just before the midnight deadline on saturday. The agreement is only kicking the can down the road as the republicans in the house find tension just boiling over. Emily wilkins has the latest in d. C. Emily, good morning. Reporter good morning, frank. You mentioned congress narrowly averting a shutdown over the weekend after Kevin Mccarthy ditched the strategy of trying on appease hard lliners and word with the democrats to pass the stopgap bill to fund the government until november 17th. Congress member matt gaetz will try to remove Kevin Mccarthy from his position, but this will depend if democrats back mccarthy. If not, the house could go into the standstill and we will wbe back where we were in january of this year. Congress member Brian Fitzpatrick told nbc over the weekend that spending time fighting if mccarthy should be speaker takes attention away from bigger issues. It will grind operations to a halt. We have a lot of threats. China, russia, iran. Internal challenges with the border and inflation and crime. Thats what we should focus on, not this. Reporter congress this week is expected to continue moving ahead with bills that will fund the government in the long term. The house and Senate Democrats are also prepared to make additional push for aid to ukraine which was not included in the stopgap measure over the weekend. Mccarthy said any aid to ukraine has to be paired with policy changes at the border to limit immig immigration. They averted a shutdown, but they have a long way to go at this point before the government is funded for next year and this kicking the can down the road is no longer something to do. Emily, i have a couple questions. Any market implications to the drama with Speaker Mccarthy . What is the future for the House Speaker . We have a shortterm deal with the shutdown, but the longterm future as leader of the party . Reporter those are great questions. You saw moodys come out and say if there is a shutdown, it will impact the Credit Rating of the federal government. One thing they cited is a sense of dysfunction in washington and not knowing how things are going and walking up to the deadline and waiting to the last minute. There is still some concern out there like we cleared this hurdle, but we have another one coming up in less than 50 days. For mccarthy, it is interesting to see how this plays out. Theres a lot of questions as to whether the house could go back to the rules package that was passed early in the year and make changes so things a little bit less chaotic on the house floor. Of course, they there are a lot of questions about mccarthy in general. On one hand, he is applauded from both sides for being agble to avert a Government Shutdown, but on the other hand, there is a strong opposition to working with democrats to get it done. A lot of questions. Emily, great to see you. Coming up on Worldwide Exchange, what a massive irs data leak and what it means for the safety of your tax information. The latest on the case when ayituswide exchange returns. St wh. Icy hot. Ice works fast. Heat makes it last. Feel the power of contrast therapy. So you can rise from pain. Icy hot. This is a clustomer. It happens when Marketers Group all their customers together. Mailchimp uses realtime behavior data so you can personalize email for every customer. Turn clustomers into customers, with intuit mailchimp. This halloween, trick or treat yourself to the blendjet 2 portable blender. Its to die for. Blendjet 2 gives you monstrous power for a delicious smoothie, shake, or frappe anytime, anywhere. Cleaning blendjet 2 is scary easy. Just blend water with a drop of soap. Recharge quickly with any usb port. Boogie on over to blendjet. Com and order yours today. Welcome back. It is time for the morning call sheet. We start with Piper Sandler raising the private target on data dog moving it to overweight and 115 per share. Opportunities around security and a. I. Are big benefits for data dog. Shares up 3 in the premarket. Mizuho downgrading toast to 16 per share. The headwinds for the stock and challenging on enterprise and the restart of student loan payments. Shares of toast down more than 2 . Now time for the global briefing. The bank of japan is looking to slowdown the rise in yields which are sitting at the highest level in a decade. This comes after the unscheduled operation from last week as the debt for the country slumps. And li posts record Sales Numbers this year due to enthusiasm over new models and increased charging stations. Li is up 200 year over year. Shares up 1. 5 . Major Telecom Groups are looking for Big Tech Companies to use the network for traffic group. 20 have signed a letter saying regulators need take action to invest in 5g and fibern network. Turning back to the u. S. A former irs contractor has been charged with leaking information of tax returns of wealthy people which includes former President Trump. We have more with robert frank on the story. Good morning. Good morning, frank. Federal prosecutors charged the irs contractor with leaking the tax returns ofer payers. Charles littleton is charged with the disclosure of the tax information. Court records say he stole the records between 2018 and 2020 while working on an irs contract. Those returns were leaked to two news organizations not named in the filing. Sources say they were pro ppubla and another which published an article on President Trump at the time. Ken griffin sued the irs after his taxes appeared in one of the articles. Griffin saying in the statement that he continues to be frustrated by the irs failure to protect personal data. The irs said in the statement late friday that, quote, any disclosure is unacceptable and it is improving the data protections. Frank, there was a lot of discussion in the capitol over the leak and finding the leaker sdpleaker. I want to ask you mentioned propublic and new york times. What are they saying . New york times did not state anything. Propublica did not state anything and if he felt it was in the Public Interest to public the data at the time. They didnt know the identity of the leaker. They probably learned on friday night as we all did. A developing story certainly. Robert frank, always great to see you. Thank you. Ahead on Worldwide Exchange, the one word that every investor needs to know today. Victoria green well layout her chart pick. That is coming up next. If you havent already, follow our podcast on apple or spotify or other podcast apps. More Worldwide Exchange coming up after this. when the day that lies ahead of me seems impossible to face a lovely day lovely day lovely day lovely day a bank that knows your business grows your business. Bmo. A bank that knows your business grows your business. Every day, businesses everywhere are asking is it possible . With comcast business. It is. Is it possible to help keep our Online Platform safe from cyberthreats . Absolutely. Can we provide health care virtually anywhere . We can help with that. Is it possible to use predictive monitoring to address operations issues . We can help with that, too. With the advanced connectivity and intelligence of global secure networking from comcast business. Its not just possible. Its happening. Icy hot. Ice works fast. Heat makes it last. Feel the power of contrast therapy. So you can rise from pain. Icy hot. Welcome back to the Worldwide Exchange. Its time for the wex wrapup. President biden doubling down on republicans to support a bill aimed at more aid for ukraine. Saying he is sick and tired of the political infighting that nearly led to a Government Shutdown over the weekend. Talks with the uaw and big three continuing over the weekend with the expansion of targeted strikes. Shawn fain telling members on saturday to not let messages from ford, gm and stellantis to give up the fight for justice. The wall street journal reported that the chairman of evergrande is being investigated in transferring funds overseaov. And tesla is launching an up diedupdate to the model y in ch. An error in the system led to the false confirmations for amazon. And microsoft says Satya Nadella will testify in the google antitrust trial. He will be asked about the hurdles posed. And here is what to watch, it is all about the Employment Data and jolts figures. We get jobless claims and we close out the week with the jobs report on friday. As we gear up to kickoff the first trading day of the quarter, lets bring in victoria green. Good morning, frank. We talked about this the earlier in the show. The magnificent seven is empowering the market. Are you worried about the narrowness of the market and do you believe we can churn higher with the seven stocks making the gains . It has to. For now, the uptrend is in tact. Until you see it violate 4,200, you have hope for a yearend rally. It is the tenyear rate is up. If the tenyear gets closer to 5 and we are higher for longer and one more rate hike, that is a lot of headwinds. Im concerned about how sustainable this rally is and i think we are looking at choppy turns. A couple of weeks ago, we heard people saying the market has to broaden out to keep the rally going because of allocation limits for Fund Managers and things likes that. You are saying you need the magnificent seven and you are not worried about the rest of the market . Sure. The other 493 need to move as well well. You need your breath to widen out. You want more breath for sustai sustainability. For the s p to move, you need the 30 . They are cap weighted. They cannot rally without them. Vicky, what is the wex word of the day . Cliffhangers. Not the standoff in congress, but the favorite price is right game. The cliffhanger with the mountain climber not falling off the edge. I dont see the fed avoiding the cliffhanger problem of how high do you go without going too far . How far can we go without rolling off the mountain . You say it is a cliffhanger. The cme fed watch tool is a 70 chance of no rate hike. The magnificent seven performing well and then do you believe we need one more pause to keep the rally going . You see 30 and it will change this week and also with the relief of no Government Shutdown where data wellill flo out on time. The concern of sticky inflation pushes the fed to one more hike this year. The market is not broken. You have not seen these things. It gives them more wiggle room with one more. I see a tighter fed and i dont see a pause this year. I see a pause coming next year. Were kicking off q4. The mystery chart today is the sector underperformed. Pepsi. Why is now the time to buy pepsi . It is not just beverage, but snack story. It is a huge growth market. They missed out on the hostess acquisition. They are looking for another baked goods to buy. It is a Quality Company with 3 dividend yield. It was down last quarter. They are known for conservative guidance. They had a beat in raise for the Third Quarter. I like the beverages and snack levels. I know people are worried about gatorade. You have prime coming and body a armor. I see gatorade as the prime sports beverage. It is a great stock. I want to ask about other picks. Costco. The other is marathon petroleum. We have been talking about energys big rise over the quarter. Do you see that continuing . Why invest in marathon right now . The spreads should continue to widen with the prices stabi stabilizing. They typically go down a little bit and have a little less run time because theyre doing maint maintenance. The physical demand for diesel and petroleum is high. The market is tough. I see them being able to generate more cash flow. The Balance Sheet is minimal. Less than 1 billion coming due in 2024. All of that cash flow is coming back to investors. It is not driven into Debt Repayment or refinancing. Victoria greene, thank you for your picks. Have a great day. Take a quick look at futures. They are in the green across the board. Dow up 60 points. Earlier, it was up 100 points. Take a look at bonds. 10year treasury at 4. 62. 2year treasury above 5 . One quick look at oil. Wti issing moving higher from earlier at. 75 . Natural gas is easing a bit. We will leave it there. Ve gatp xtx is coming une. Ha are day. The power goes out and we still have wifi to do our homework. And thats a good thing . Great in my book who are you . No power . No problem. Introducing stormready wifi. Now you can stay reliably connected through Power Outages with unlimited cellular data and up to 4 hours of battery backup to keep you online. Only from xfinity. Home of the xfinity 10g network. Good morning. Government shutdown averted for now. The nation could be in the same situation next month or next year or year after that. Were going to look at whats next for capitol hill. The news from washington gave the futures a pop, but it has melted away. What will the new month hold for the markets . For some reason, the averting the shutdown is helping bitcoin. Speaking of bitcoin. Ftx founder Sam Bankmanfried is heading to trial this week. It is monday, october 2nd, 2023 and 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. Im becky quick with joe kernen and andrew ross sorkin. Guess what . Its a new month. Its a new quarter. It is a fresh start for the markets. It stopped raining. And its monday. Yesterday was beautiful. Lets look at what is happening. We were looking at green arrows across the board, but the dow fell below. S p futures up 3. Nasdaq up 32. It comes