Sights on foxconn as they are the latest target of regulatory probes. Later in the show, House Republicans try to elect a speaker with several Party Members making their bid for the top job. The latest from washington on this monday, october 23th, 2023. You are watching Worldwide Exchange here on cnbc. Good morning. Welcome to Worldwide Exchange. Im frank holland. Lets get you ready to start the trading week off with the check on the u. S. Stock futures. They are red across the board. The dow would open up 80 points lower. Stocks coming off the tough week, but the major indices shedding between 2. 5 and 4 last week. Look at the nasdaq which was hardest hit last week. Dow down 2. 5 last week. Crossing back into negative territory for the year with the 2. 5 drop. Remember, that was last week. This week is the busiest for earnings season set to provide fresh fuel for stocks. 30 of the s p 500 and 40 of the dow will be reporting. Among the notable reports is four of the mega cap tech names. Microsoft, alphabet, amazon and meta. More on those in a moment. Of course, we get a check on th bond market with the 10year treasury hovering around the 5 mark. 4. 999 right now. Important to note the twoyear note and 30year long bond above 5 . Oil coming off the second straight week of gains. You are seeing a bit of a rise in oil in the negative and now fractionally higher. Brent crude above 90 a barrel. Natural gas up. 50 . Lets get more with jay hatfield from icap. Good morning, jay. Thank you, frank. You raised your price target to 4,500 and up to 5,000. That implies a 6 to 8 rise from where we are trading right now with the s p. What is giving you the confidence to raise price car f target . This week will be a good test of that thesis for two reasons. The first is as you mentioned with mega cap tech. We think the a. I. Boom could take us above fair value. The other portion of our bullish call is we think rates have peaked which is non consensus because we see europe going into recession this quarter. We will get better data at the end of the month. Italys economy is the weakest in europe and they have the worst budget deficit and highest debttogdp. They are the weak leak to cause the ecb to cut rates next year. I want to bounce research off you from ed yardeni. He said hostilities expect us to raise our odds of a u. S. Recession before year end of 2024 again to 35 from 30 . Yearend rally is less likely now, but the geopolitical crises present longterm buying opportunities with stocks. A yearend rally less likely. Recession odds increasing. Agree or disagree with the buying opportunity . I think there are a couple of elements consistent with our thesis. There are two reasons that probably the tenyear bond is peaking and that is that when rates rise quickly, there is a response. The u. S. Auto sector and housing sector are likely to slow. We dont think crash, but slow. The odds of recession are higher. We still dont think there will be one. We have Infrastructure Spending as an offset. We have the a. I. Boom. None of which is in europe. We agree the Recession Risk has risen, but we will be buyers because those Recession Risks are likely to cool off the tenyear yield which is the overhang particularly in the market last week. You believe bond yields are close to peaking right now somewhere around 5 . Maybe not a buying opportunity with the stocks, but what about bonds . Should investors lock in the rates . We think so. That would really underpin our target if we are correct on that in the s p. The other side of that is important to note with every 40basis point move in the treasury implies from the theoretical basis a onepoint reduction in the s p fair value multiple. I would say if were not correct about rates and they dont rally, then our target is not going to be reached and closer to our original target. 4,500 as with we had at the beginning of the year. Jay, one other quick question. Looking at the dow futures, moving lower since we have been talking. We have seen a trend of europe opening lower and tends to hit the u. S. Markets as well. What do you think the reason for those mechanics is as you mentioned with two different markets in europe and the u. S. . We think it is not europe stocks opening, but the bond market with the world bond market. That is off slightly. We think that is the driver. Not so much stock prices in europe. European multiples are depressed ten times earnings which are reflecting the negative outlook on the economy. The bond market is driving our bond market which is driving the stock market. Something our jim cramer has talked about with europe and u. S. Opening following. Jay hatfield, thank you. Thanks, frank. It is the busiest week of the earnings season with 30 of the s p reporting. Four of the tech giants reporting. Microsoft, alphabet, meta and amazon and along with nvidia which reports next month will do the heavy lifting for the markets. Lets talk more about this with richard kramer. Richard, good morning. Frank, thank you. Lets talk about four of the magnificent seven reporting this week. Which reports this week that you see having the biggest i mpact n the markets . The long is meta. If you look into next year u the street is looking for 13 growth at meta and 10 growth in the advertising business at google. Think about those two companies. They will bring in 40 billion of additional revenue in the advertising businesses next year. The question really is where is that coming from . I think the previous guest alluded to the risks around the consumer and meta is a company that gives guidance for the fourth quarter. People are looking for reduction and expenses and it is an issue of top line growth and the spend which is controversial. Remember last week where we saw the better than expected retail sales number. You say you have doubts about companies willing to spend to chase the consumers. There are two things you have to separate. One is the Consumer Spend which is facing a lot of headwinds whether it is student debt repayments or lag effect or the pressures piling on with the Higher Energy prices. On the flip side, what you have seen with the Big Tech Companies is steep reductions in their own expenses. It is not just head count, but pull back in advertising spend. Their margins will be fine. The question is can they find enough topline growth in overall businesses . You have to take in mind the scale of the Big Tech Companies. I want to talk topline growth with infrastructure. Amazon and microsoft and google t with the cloud business. What are you expecting from the results . Are you expecting to see reacce reacceleration . What you saw with these cloud players is they all face reduction in growth because companies were optimizoptimizin. While they could not take away the licensed software they committed to, but they could reduce how frequently they were compiling the apps or managing work flows in the cloud. Now you will see happening maybe not reacceleration, but the trough points in the growth rates with amazon or microsoft. You have to look at scale of the businesses. Microsoft is 180 billion software business. You compare with europes competitor here at 30 billion. The scale these Companies Need to bring in with incremental revenue to grow is daunting. Richard kramer, thank you so much for the look ahead for tech earnings. Four of the magnificent seven reporting this week. Thank you. Thank you. We will follow breaking news on Worldwide Exchange. Chevron is buying hess for 171 a share or 53 billion. The deal has a total enterprise value of 53 billion. Hess shares up 3 right now. Chevron is looking to buy hess for 53 billion total or 171 a share. A few dollars premium to where hess is trading right now. Turning attention now to washington, d. C. Here in the u. S. House republicans heading into another week without a House Speaker and trying to overcome difficult visidivisions to get r party wrangled. We have brie johnson with the latest in d. C. Frank, there is no clear candidate in the lead. Jack bergman and byron donald and tom emmer of minnesota are all making their case for the party in a closeddoor forum. On tuesday morning, the republicans will hold another internal vote to choose the next nominee. Whoever that lawmaker turns out to be will then face that uphill battle of trying to win 217 votes in the full house. The house has been without a speaker since Kevin Mccarthy was ousted from the job on october 3rd. These nine candidates step forward after Steve Scalise and jim jordan fell short of the votes needed to win the gavel. We will see this next turn can get to the 217 votes this week. It could be interesting in d. C. Brie jackson, thank you. A lot more to come on Worldwide Exchange, including the one word investors need to know today. Also, techs tough week. The real impact that higher rates are having on the sectors solid run. Plus, israel is continuing the military campaign against hamas amid mounting fears the conflict will grow larger. We are live in the middle east. And potential progress on the hollywood strikes. Officials and studios look to get back to the bargaining table. We have a very busy hour still ahead when Worldwide Exchange returns. swords clashing had enough . No. Arthritis. Here. Aspercreme arthritis. Full prescriptionstrength . Reduces inflammation . Thank the gods. Dont thank them too soon. Kick pain in the aspercreme. 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. 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. Welcome back to Worldwide Exchange. Looking at u. S. Futures with a move to the downside since we started the show. Dow opening up 120 points lower right now. When we started the show, s p and nasdaq started lower and now down. Lets bget the latest from the london newsroom with joumanna bercetche. Good morning, frank. You see all the indices in the red. Investors are very much focused on the situation in the middle east. The potential for a wider conflict within the region and that is keeping riskon sentiment. Back to prepandemic levels there. Hang seng down. 70 . A key level down for the nikkei which is weaker on the session. Weakness in oil minors and chipmakers within the jaepanese index. You see one spot of green on the italian index up. 10 . We are in the red with the ftse 100 down. 4 builders with the please act price action. You see volkswagen is down 2. 3 after it slashed the output for the year. Volkswagen took a 2. 5 billion euro noncash hedging loss. The reaction has been negative. You can see the stock is down 24 year to date. It is dragging down others in the sector. We have earnings coming up as well as the ecb on thursday. Frank. Thank you, joumanna bercetche. We want to Pay Attention to the bond market right now. Look at the tenyear yield. It crossed the 5 mark again. Right now at 5. 006 . We have been watching out for this. We had specials on this here on Worldwide Exchange. We will follow this throughout the morning. I want to point out the tenyear yield crossing 5 . Lets shift gears to the latest on the situation in the middle east. Over the weekend, israel ramping up attacks on the gaza strip and beyond as the fighting enters its third week. We have Nbcs Jay Gray with the latest from tel aviv. Good morning. Reporter good morning, frank. Air strikes from israelis forces have picked up. Idf saying they hit 320 military targets including tunnels and Operational Centers and they are clearing areas surrounding the border. The small strike teams have moved across the border searching for hostages and making sure the area is maintained. We know there have been continued skirmishes around the fence at the gaza border. It is clear from the language that the idf is using at this point that they are focusing on that ground assault. Something we talked about for days. It does appear with the movement of troops and reestablishing positions of could be close to the incursion. Quoting now from one commander on the air strikes, who is saying, and these are their words, they are leaving hamas weakened in the next stage of the military operations. Jay, we have been talking about the flow of humanitarian aid into gaza an. Wha gaza. What is the latest had water an medicine and food. U. N. Saying it is only 4 of what they normally see per day as far as supplies moved into that area. 20 trucks on the border today and looks like they will be moving in as well. The white house has now promised a continuous flow of aid. The one thing, frank, we wont see moving in that they need is fuel. They will not allow fuel to go in. Israelis and hospitals are burning their last bits of fuel. They will not be able to continue to operate if they dont find a way to get fuel in that the area. Jay gray, thank you for the latest. Stay safe. Ahead on Worldwide Exchange, the key ruling around wal estate commissions. Weill explain that when Worldwide Exchange returns. Stay with us. 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. A look at the consumer stat and fresh signals of strain. 5. 4 drop year over year for Retail Stores and Dollar Stores and supermarkets according to key bank data. Turning to housing and real estate in new york is making a change with commissions. Robert frank is joining us now. Robert, good morning. What is the ruling . What does it center around . Frank, the real estate board of new york announcing how buyer brokers will be paid. They prohibit the broker for the seller from paying the buyers agent. The listing broker splits commission, 5 to 6 , with the buyer broker. With the new rule on january 1st u 1st, the buyers agent will be paid by the seller. This comes with the backlash and Class Action Lawsuit against the socalled split rule. Thousands of home he sellers ha sued two agencies alleging anticompetitive practices. Buyer brokers are paid by clients in other countries, typically 1. 5 . It shows they are steered away from homes with lower commissions. Trial is under way in kansas city. The nar is saying, quote, the market itself decides how Real Estate Agents services are given and paid for, but, frank, the fear on the part of brokers is this could start to chip away at the sacred 5 to 6 commission they have long held. This is an eyebrow raising story. Could this lower the fees you pay to your agent . I think a lot of times agents push back if you lower that commission. They do push back. It is surprisingly hard to get it lower than maybe 5 and even in the highend markets like new york or los angeles. In other countries, frank, developed countries, the brokerage fees are 2 . Half what they are here in the u. S. The lawsuit which continues this week and runs through the month of november could start chipping away at the 6 or at least make it more transparent as to how each broker is earning that 3 split on that 6 . Robert, you will have a busy day. A lot of eyebrows are raising on this story. If you get below 5 , get pushback. Realtors act like it is a law when it is negotiable. It is sort of negotiable. The question of the lawsuit is is it de facto a law . You have to adhere to the policies of realtors which until recently the seller broker pays the buyer broker. To list on multiple services, you had to adhere to the t guidelines. Robert frank, thank you. Still on deck, shares of tesla are looking to bounce back after shedding more than 15 last week. Worst week of the year. We dig into what the charts may be telling us with Katie Stockton coming up. And a look at the tenyear yield crossing the 5 mark. Right now at 5. 008 . Something we will continue to tcthis morning. More Worldwide Exchange coming up after this. 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. You want to be able to provide your child with the tools or resources they need. With reliable internet at home, through the internet essentials program, the world opened up. Fellas, fellas. Thats how my son was able to find the hidden genius project. We wanted to give yall the necessary skills to compete with the future. Kevins now part of this next generation of young people who feel they can thrive. Its 5 30 a. M. In the new york city area. There is more ahead here on Worldwide Exchange. He heres whats on deck. Investors get ready for the busiest week of the earnings season. Futures pointing to pressure at the open. Tech on top of the earnings radar with several key players out with results. We dig into the technical signals the sector is heading. And foxconn facing fresh regulatory pressure from china and taking a bite out of that stock today. It is monday, october 23rd, 2023. You are watching Worldwide Exchange here on cnbc. Welcome back to Worldwide Exchange. Im frank holland. Lets start off the trading day with the futures this half hour. S p futures in the red. Dow moving to the down side down 100 points since Worldwide Exchange started. It is looking to open 180 points lower. S p and nasdaq in the red and moving lower in last half hour. Investors are facing a busy earnings season with 30 of the s p 500 and 40 of the dow reporting. Microsoft, alphabet and meta and amazon reporting this week. We will check on the bond market here with the factors on the futures. The rise in bond yields specifically with the tenyear treasury hitting the 5 mark. Trading at 5. 012 . The twoyear note and 30year bond trading higher as well. Lets look at the Energy Market with the second straight week of gains. You see wti is the benchmark in the u. S. And moving lower. Brent crude is trading at 92 a barrel. Natural gas is taking a bit of a dip, but in the green this morning. We are following breaking news p iin the energy space. Chevron is buying hess for 53 billion. Look at stocks this morning. The action here with chevron moving lower down 2. 5 . Hess is moving up 2. 5 . Look at the move off the highs when the news was announced. Chevron looking at 171 a share for hess. Turning back to earnings season. Tech earnings is a catalyst for the price action this week. The question is what are the technicals . We bring in Katie Stockton. Katie, it is great to have you with us this morning. Good to be here. We are looking at the charts. Nasdaq 100. Facing pressure from rising yields. The tenyear yield crossing the 5 mark and rising oil prices. What are the charts telling you about the nasdaq 100 . 12 there is a Bear Sentiment and it is instilled from treasury yields. The 5 threshold is an issue for the market. It kept it in the corrective phase which unfolded in the a, b, c fashion. Now we have the nasdaq 100 being tested. It is almost in line at the secondary level. That is what would become the downside target should we see a breakdown. We are hoping to see the market come out of this corrective phase. We saw oversold conditions register last week. With that, we are looking for support to be discovered. We want to turn back to earnings season. Microsoft reporting its earnings tomorrow. Obviously, it will have a big factor on the nasdaq 100. We are moving along with the impact on tech earnings. What are you seeing with this chart . Same idea. A, b, c wave with the cyclical bull trend. Still in tact, but barely. It is roughly 308 for microsoft. As long as that level is in tact, we assume this is a correction and not the start of something worse. Where microsoft starts to look like it is advance from the corrective phase is 340. You see there is strong resistance and it goes back to the 350 mark. That is where you see new highs logged by microsoft. We are hopeful this is a correction and not the start of something worse. It is important we see the level hold. 35 350 is the mark and you he 325 right now. This is the catalyst for the stock to move up . Yeah. And lastly, tesla reported earnings last week. What are you seeing for the charts . The gap in response to earnings was unfortunate. Tesla came down from the triangle formation. That is a high probability setup to the downside. We saw the downside follow through. You can see that tesla is testing its 200moving day average. It is a reflection of the longterm turn around we saw this year. That is in tact as long as support is in tact. It happens to be basically in line with current prices. We are hoping to see tesla discover support in here near term. The triangle breakdown is a setback. Historically with the technicals on tesla, ill move these out, with the year trend here and what does that tell you . We are always looking at it within the context of the brobr broader trend. You could make a connection with the current phase and this trend here. For us, we have not seen that unfold in a break down. That is important for us in the broader market. You support levels hold and assuming this uptrend establishes here and that is in tact, then that is a reversal of 2022. We talk about a stock making higher lows. Is that what you are talking about . Thats right. You see it with the 200moving day afverage as well. It also can be a support level. Tracking the technicals. Katie stockton. Thank you for being here and drawing on the charts and giving us insight with earnings season getting underway. Of course. Time for a check of the top corporate stories with bertha coombs. Good morning. Good morning, frank. The Biden Administration announcing in the last hour that it is designating 31 tech hubs across the country in an effort to drive innovation and job creation. The authorization by the Commerce Department comes as part of the chips act. The hubs will be able to apply to receive between 40 million and 70 million each totaling nearly 500 million. Striking hollywood actors are returning to the negotiating table, two weeks after failing to reach a deal with the studios. The two sides are set to come together tomorrow. Actors are facing pressure to get the industry back to work due to the strikes impact on jobs and revenue in los angeles. The hub of production. And Stonepeak Partners announcing agreement to buy container leasing firm textainer in a deal worth 7. 4 billion. Shareholders will receive 50 per share in cash and receiving the total value of common shares. The deal is expected to close during the First Quarter of 2024. You can see the stock up about 42 . It is shaping up to be a merger monday, frank. A lot of action on monday morning. We thought it would be a quiet one. The tenyear yield cross 5 . We saw action in the premarket. A lot going on. Bertha coombs, thank you. Chevron and hess. Good point. Turning attention to foxconn. Shares taking a hit in overseas trading after the Company Announced it will cooperate with the investigations after the weekend of fresh probeprobes. Foxconn is down 3 right now. We have jp ong with more on this story. Jp. Reporter frank, good morning. We cant underscore to you why foxconn is important. If you own an iphone or ipad, it is a chance it was made in foxconns factories in shanghai. They are facing a tax audit in china with the subsidiaries an along with the investigation into the alleged way they are using the land for Natural Resources department. Foxconn said Legal Compliance is important and they are cooperating with the investigations. It is very foreign take note of this. Two sources spoke to reuters and want to remain nameless. They found these investigations timely. They found out a number of other firms are subject to tax audits, but none named and only foxconn was named. They do find the timing unusual. Also happening at a time when Many Companies like foxconn are starting to shift supply chains away from china with the rise of the tensions with the two largest economies in the world. They feel this could be a message from beijing saying we see what you are doing and see the factories move to vietnam and india. We want to know if you are on outside or on the other side of the current economies there. This is why they are getting heat from beijing. Frank. I want to point out apple shares are down 1. 5 . Do you see this interrupting operations for foxconn . Reporter there could be inter interruptions. They said operations will probably not be in danger as long as the audit is conducted effectively. It is interesting you bring up the political implications because we also know and the two sources did note this investigation is coming two months before taiwan holds the general elections. Foxconns founder and former chairman is running for the presidency of taiwan. He is shown to be more warm toward beijing. He feels the Current Administration in taiwan feels there is a need to cooldown tensions and the connection to the mainland normalizes the relations with taiwan and beijing. China firmly claims taiwan is th theirs. If goda runs, he could split the vote which could move for the ruling party to stay in power in taiwan which are secession under t tundertones in taiwan. Frank. Jp ong, live in singapore. Thank you. Great reporting. Coming up on Worldwide Exchange, greece getting a vote of confidence around the economy for the first time in a decade. First, as we head to break, top trending stories. Another week and another win for taylor swift. Taking in 31 million in the box office over the weekend for the eras movie. She was at the chiefs game. America running on dunkin at night. Launching the first espresso martini at the popup in new york. Vodka and dunkin cold brew and simple syrup and topped by a munchkin garnish. And uber offering hotair balloon rides available for 159 in turkey. Ride shareoi t gngo new levels. More Worldwide Exchange coming up after this. Before you even step inside . Discover the Magnolia Home james hardie collection. Available now in siding colors, styles and textures. Curated by joanna gaines. swords clashing stylhad enough . Res. No. Arthritis. Here. Aspercreme arthritis. Full prescriptionstrength . Reduces inflammation . Thank the gods. Dont thank them too soon. Kick pain in the aspercreme. Welcome back to Worldwide Exchange. We are taking a look at futures with the dow down 200 points in the premarket. Nasdaq and s p moving lower this morning. This follows the move in treasuries with the tenyear yield moving higher crossing the 5 mark where it remains right now. This story is one we will watch throughout the show and throughout the day here on cnbc. The tenyear yield back above 5 . Back above that measure once again. Time for the morning call sheet. We look at big calls on stocks. We begin with stifel upgrading pinterest. Stifel thinks there is room for growth for the social media company. You see shares of pinterest up 2. 5 . We we have Piper Sandler moving salesforce to neutral. Execution risk is increasing and growth is a question. Sa shares of salesforce are down this morning 4 . And the Jpmorgan Chase move on hikes of walgreens. Shares right now up over 3 . It is time now for the global briefing. We begin with greece with a vote of confidence in the economy and the s p upgrades to investment grade. The bonds were moved to junk status in the financial crisis and that pushed it to the brink of collapse and international bailouts. We also have philips swinging to the Third Quarter profit and raising guidance for the year. The company reporting growth in all segments led by double digit sales in diagnosis units. Philips expects to report sales growth of 6 to 7 this year which is up from the mid single digits. And roche looking to buy telavant for 7. 1 billion. They will get the rights to manufacture and sell the drugs to treat inflammatory bowel disease in the u. S. And japan. Roivant was founded by president ial candidate vivek ramaswamy. And coming up on Worldwide Exchange, is our mystery chart and our guest who will discuss it. If you miss wlddeorwi exchange, check us out on apple or spotify or your favorite podcast app. More Worldwide Exchange coming up after this. 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 Worldwide Exchange. We are looking at the bond yields. The tenyear bond yield is crossing the 5 mark. It is putting pressure on the markets. Well talk about that in a minute. The tenyear yield is crossing the 5 mark. Time now for the wex wrap up. We have m a news. Receive chevron buying hess for 53 billion. Look at shares of both companies. Chevron is moving lower down 3 . Hess is up 2 . Nine republicans vying for the speaker position after jim jordan failed to secure the seat last weekend. Hopefuls include flmembers from oklahoma and texas and minnesota. And israel war planes strike the gaza strip and syria over the weekend. And foxconn says it plans to cooperate with chinese authorities on tax audits and investigations following reports that china launched check into the sub sidiaries of the compan. And airlines are pushing for safety checks in the dcockpits after close calls on the ru runways. And spacex has signed a deal to launch up to four european satellites in space with the falcon rocket over the next two years. Final approval for the deal is expected by the end of next year. Here is what to watch as we gear up to kickoff the trading week. The busiest week of the season taking place with 30 of the s p and 40 of the dow reporting. Among the notables, microsoft, amazon and meta and microsoft. And chevron is reporting this week especially after the news this morning. Earnings is setting the stage for the week on wall street. Lets get one more check of the futures. The dow looks like it will open up 225 points lower. S p and nasdaq falling into the red. Nasdaq is down. 30 . Joining me now to discuss this and the move in the treasuries right now with the tenyear yield crossing 5 is Katrina Dudley from franklin templeton. Yields moving higher this morning. Tenyear yield moving higher this morning above 5 . What are we dealing with . We are looking at yields and how people are responding to them. The Zombie Company is a company that cannot afford Interest Rates at these levels. These companies are potentially companies with Good Businesses and bad Balance Sheets and we need to fix the Balance Sheet or they are bad balances with bad businesses and will file bankruptcy. You want to understand if you have a Good Business or looking at the marks of the company and a product that people want or Pricing Power or a great culture and has the ability to raise capital. It is a stock pickers market. You have to dig in. W what is your wex word of the day . Complacomplacency. That is on the side of the board. We are seeing it in the housing market. We are seeing consumers stuck in their houses because they have the really low Mortgage Rates and they dont want to move to take advantage of the new opportunity. They are stuck in the gyms because they have that rate. They are stuck in the jobs because they negotiated really good deals. F Flexible Work environments. You have no sense of complacency in you. You are coming in with a pick which is an underperformer. Down 11 year to date. Why is this a pick in your mind . Are you always trying to find under valued stocks . We are. We are looking for what is the new defensive in this market. What has traditionally been a defensive stock is not acting that way. It is coming down to the drugs with the packaged food sector and other sectors with defensive characteristics. This is a Health Services company with low earnings expectations. It is a company that beat the quarter. They will raise it next year in our opinion and the valuation is too cheap. It is a sector People Struggle to understand. That is why the valuation exists. Thank you, katrina. Lets look at treasuries. The tenyear yield crossed the 5 mark this morning. The dow down over 200 points. S p and nasdaq are down. 75 . That is it for us. Squawk box is up next. Thanks for watching. Good morning. We havent said this in a while. Merger monday. Chevron and hess striking a mega deal. Stocks on the move. You can figure out which way. Watching the yields. The market is coming off a rough week for investors. Were focused on the tenyear yield at 5 level. It is about 500 dow points in two days. Were down another 200 this morning. Another week and another house with no speaker. Now more candidates are lining up for the job. Its monday, october 23rd, 2023. 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 along with joe kernen and andrew ross sorkin. It is monday. Here we he go. Y dow futures down 231 points. S p down 32. Nasdaq off 130. This comes after a decline of more than 1 on friday for the major averages. S p finished down for the weeweek. If you are looking at what caused this, treasury