The company is not giving up a fight. We look at the intersection of politics and big money. And breaking records on the fourth largest economy, putting the stocks rally at risk. Later in the show, the boeing stock wipeout continues as the growing concerns grow for investors and wouldbe hires. Its march 13th, 2024, wednesday, and youre watching Worldwide Exchange right here on cnbc. Good wednesday morning. Welcome to Worldwide Exchange. Thank you so much for being here with us. Were going to get you ready for the trading day ahead. We kick off the hour. After a solid day for stocks yesterday, we saw the s p close at the 17th recordhigh of the year. A bit of a mixed picture. The dow opens up 25 points higher. The nasdaq a little hdown. And take a look at yields. The benchmark moving just about four or five basis poimtss from the level we saw it at yesterday. Were looking at energy, specifically oil, riding a foursession losing streak. Were seeing a bit of a bounceback. Wti and brent crude both up almost 1 . Thats your morning setup. Lets get a check of our top corporate stories. Silvana henao is here with those. Good morning. Reporter good morning, frank. House lawmakers are set to vote on a bill that would force tiktok owner to divest from bytedance. It would ban the app from the u. S. The vote coming as the report suggests tiktok, quote, exhaust all legal challenges before it considers any type of divestiture with a sale being the option of last report. If the bill passes, the house, the senate would still need to vote on it. Meanwhile the pentagon is reportedly pulling out of a plan to spend as much as 2. 5 billion on a chip grant to intel. The move if confirmed would put the focus on the commerce didnt to make up the short fall. The move threatens to limit the total amount intel had expected to get in federal funding including another 10 billion from the chips and science act. Right now shares are slightly lower in the premarket. Down about 1. 25 . Cit citadels ken griffin thinks the fe fed should move cautiously when it comes to cutting Interest Rates. Speaking in boca raton, florida, with cnbc yesterday, griffin echoing what we heard from jpmorgans Ceo Jamie Dimon a day earlier, saying the worst thing they could end up doing is cutting, pausing, changing the r direction back toward higher rates quickly. That would, in my opinion, be the most devastating course of action they could pursue. Griffin is saying investors can play the markets in two very different ways. Youve got the magnificent 7. Youve got this incredible story thats just ripping through the equity market about the transformative changes coming with ai. And much of the market is at earnings that are far more in line with historical averages. This is a moment in time when you can in some sense, you can sign up for big bold you know, these companies are changing the future, or you can put your money to work where its much more in line with historical averages and it has a different profile. Joining us now is chief Investment Officer dan gerut. Would you agree thats the proposition that investors are facing right now . I dont think its that its not safe. Theres a lot of markets picked over. Isnt that safe as opposed to it rising 2 last year. I look at it differently that theres more upside. A lot of companies are away from the mag 7 and some of the companies where there is excess valuation, were about to shift fiscal policy again Monetary Policy, rather. So, you know, some of the things that were headwinds in terms of being restrictive are going to become tailwinds, and that should be better for your lower priced multiple stocks. I know youre focused on valuation and bullish on the small caps. I do have to point out, the russell 2,000 trading at 24 times forward earnings. The s p only 21. Why are you worrying about that . Thats not a fair comparison. You have a lot of biotech and Early Stage Technology companies that many of them are prerevenue and are lossmaking companies. What im saying is focus on profitable companies. Theres a lot of profitability within the russell, and those are much more reasonably valued. How do you balance theed you that higher for longer is tougher for the caps. Some have less cash obviously. Small caps is not going to have the same cash on hand that an apple is going to have. Generally theyre seen as more Interest Ratesensitive. How do you balance your thesis . Were higher for longer and pes are higher. Markets discount the future. Its always been that the fed was going to begin to cut rates most likely by midyear or just after midyear, and that seems to be how its going to play out. Certainly yesterdays cpi data reinforces the fact, and i think ken griffin is 100 right. You dont want to make a policy mistake at this point. Cutting too early and then having to go back and fix things in the future is going to cost a lot to the economy. All right. Dan veru making a case for small caps. For more on whats driving the markets, you want to head over to cnbc pro at cnbc. Com pro for more. Were looking at the asia markets. Hang seng, shanghai, theres a Historic Union wage. Nippon steel agreeing to an almost 12 raise. Honda going up 5. 5 high. Mitsubishi agreeing to a record pay increase. This is bolstering the case for japans central bank to begin raising its rates at its policy meeting next week. Joining me now is the senior japan economist of Goldman Sachs, tomohiro ota. Thank you for being here on a day like this. Thank you for having me. By the way, toyota doesnt buy a perj, ba u they offer workers record bonus payments. Auto industry obviously a key industry in japan. What does it mean across all industries and what does it mean for the meeting coming up next week . We have seen Major Companies announce wage hikes. Most companies accept the wage height request. We know that. They announced that the average base wage growth quest by the trade union was 4. 3 . So basically all the companies except those that request otherwise, its going to be high. 4. 3 , which is much higher than last years number, which was 2. 5 . So but one observation, this is a very preliminary number because we have just seen around 50 Companies Press release that on this friday, friday the 15th, theyll announce more numbers by correcting the wage data from roughly 800 companies some of most likely announced on friday 4 be at 4. 3 . We think the wage hike will be higher than 3 , which is higher than our forecast we made last year, which is 2. 5 . So okay, so, tomohiro, let me jump in for a sense. Way. To get a sense for the investors. What does this mean for the commerce and the markets. We had our guest on yesterday who was bullish for the nikkei. Then the central bank agrees to raise rates, he believes that would lead to more foreign investment. Does that make sense to you when were talking about japan, that the wage increases are kind of a domino, that leads to rate hikes by Central Banks and wage hikes by foreign investors. Yes, the strong number clearly indicates the probability for the boj to raise the rate sometime soon, maybe either massachusetts or april. Its significantly higher at this moment because the bojs communication is still insufficient as a signal for the march hike. So even though we have less than a week to the Monetary Policy meeting. This is the first rate hike in the last 15 years. We believe that the boj should provide Clear Communication ahead of the big policy change. So thats mainly why we still expect an april hike. But it just feels very important that the higher wage growth is very good milestone for the sustainable inflation, which the boj want to achieve. Thats the story indeed. That boj story coming up in just a few days. Tomohiro ota, thank you very much for your time. Weve got a lot more to come on Worldwide Exchange including one word investors need to know. First while inflation seems to be coming in line with expectations, there are some areas that continue to be a cause for concern. Plus, a big payday for oracle founder Larry Ellison after the companys best day in more than two years. And then later we head back to capitol hill for a look at todays house tiktok vote and the future of billions of dollars in business between the u. S. And china. We have a very busy hour still ahead when Worldwide Exchange returns. Power e trades awardwinning trading app makes trading easier. With its customizable options chain, easytouse tools and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. E trade from Morgan Stanley power e trades easytouse tools make complex trading less complicated. Custom scans help you find new trading opportunities, while an earnings tool helps you plan your trades and stay on top of the market. E trade from Morgan Stanley my name is oluseyi and some of my on favorite momentst. Throughout my life are watching sports with my dad. Now, i work at comcast as part of the team that created our ai highlights technology, which uses ai to detect the major plays in a sports game. Giving millions of fans, like my dad and me, new ways of catching up on their favorite sport. Welcome back to Worldwide Exchange. The markets shrugs off yesterdays hotter than expected cpi data, not meant to derail the fed to cut the Interest Rate by midyear. Inflation remains stubborn. Gasoline and rent accounts for more than 50 of the increases in february. Lets talk about how inflation is impacting the Housing Market as were in the heart of the spring home buying and selling season. Good morning. Great to have you back on. Good morning. So nice to see you. In this report, one of the things were highlighting from the cpi report, the inflation data rose, but the growth actually slowed from the month before. Give us a sense. How can we read this, and also i want to take your temperature. How is the selling season going as far as inventory and willingness of buyers to pay . The overall challenge we have in housing is a tightness in inventory. Theres a shortfall nationwide, and so thats really having an impact on housing, on prices, and obviously the fact that Mortgage Rates have doubled since where they were is also having an impact. Thats kind of put us in a little bit of a gridlock in housing, but i do think the Spring Market will be better. Were seeing good product come on, and were seeing busier open houses, so all signs are pointing to a better market in 2024 versus 2023, but it has been a tough go, i will tell you that. Last year was not an easy Housing Market. You say its been a tough go. We take a look at the Mortgage Rates, a few basis points under 7 . Is that the new normal . Weve heard some people say we expect it to be a pretty strong season. Is there a level we can get these Interest Rates at that people would be more willing to jump back into the market and also sell their houses . We talked about ed yesterday, that 60 of people have a rate under 4 . I do think this is the new normal. We were so used to cheap money for so long, i think the consumer has finally accepted and stopped resisting the 2 and 3 thats gone, so this is the new normal. Rates are at a decent place. Historically theyre at a low. Its an opportune time to get in there. If you see something you like, i would encourage the buyer to get in there and buying the house they like. I dont see rates going back to 2 and 3 until i dont know when. This is still historically low Mortgage Rates. So historically low Mortgage Rates, but i think to most people looking to buy a house, especially firsttime home buyers, its double. Its shocking. Almost 7 . The other part of this Inflation Report is rent. Rent went up 6 as well. Does that motivate people to buy or is the high inventory rates what stops them from making the transition . I think its all circumstantial. I think the fact that rents have canted to go up may change peoples minds from renting into buying. They can do all these things and its i theirsversus renting, which is tell prey. Were seeing people pivot and get off the sidelines. More people are wanting to get into the market. Were seeing millennials buying homes, which is the biggest part of the market. All signs point to people getting into the market versus waiting. The last question before we let you go, inventory. Is there any hope and would that generally be deflationary when it comes to prices or is there still penalty up demand that people would be willing to pay up . Its a challenge. Its a mixed bag of both. Little by little, its incremental. Remember the Housing Market is cyclical. Little by little were seeing more come on the market and sellers and buyers are acknowledging this is where rates are. And if they want to buy or sell, that i have to get into the market. It a is go ing to take time for the deflationary to take place, but i think we have to be patient. Its slow and steady in housing. Its just not a quick switch. Its like inflation. It takes time to get us to a better place. It takes time to find the right house. It used to be bidding wars. Now the question is can you even find one. Bess freedman, good to see you. Good to see you too. Coming up, how coinbase is taking advantage obit dof wn. We have your big momoney move. Theyre coming up right after this. vo what does it mean to be rich . Maybe rich is less about reaching a magic number. And more about discovering magic. Rich is being able to keep your loved ones close. And also send them away. Rich is living life your way. And having someone who can help you get there. The key to being rich is knowing what counts. As an independent financial advisor, my promise to you is simple. As a fiduciary, i promise to put your interests first, always. I promise that our relationship will go well beyond just investment decisions. Its the intersection of your money and your life where we can make the biggest difference. [announcer] Charles Schwab is proud to support the independent Financial Advisors who are passionately dedicated to helping people achieve their financial goals. Visit findyourindependentadvisor. Com grunting at Morgan Stanley, old school hard work meets bold new thinking. laughter at 88 years old, we still see the world with the wonder of new eyes, helping you discover untapped possibilities and relentlessly working with you to make them real. Old school grit. New world ideas. Morgan stanley. Welcome back to Worldwide Exchange. We start with coinbase announcing a debt deal following its recent stock surge. You see shares are up in the premarket. Buyers with notes will have a 30day option to purchase up to 1 million more. Shares of coinbase benefiting from renewed optimism around bitcoin, jumping over 300 last year. Bitcoin hitting a fresh alltime high. Take a look. Right now trading at 73,000, basically 450. Bitcoin up 70 to date. Oracle, the shares are up fractionally this morning, this after the Cloud Company beat the recent quarter, adding 15 billion to founder Larry Ellisons fortune. Owning shares worth about 146 billion. And adidas reporting flat sales compared to the prior year. The retailer says the topline focuses on sellin on lower prices. While gross margin was up, negative fx effects, higher costs and discounting weighed on profit. Shares of adidas down about 1. 5 . Were turning our attention to the latest cfo ceo survey. This is our exclusive read on the thinking of corporate financial decisionmakers. Nearly half believe were on the path of soft landing. The other half of the respondents had kind of mixed views with 15 forecasting a recession this yearing another 15 saying that recession has already happened. This is the highest read on soft landing confidence in the past five quarters. In q12023, only 16 of cos were on the path of soft landing. 22 say the central bank is doing an excellent job. A 6 56 say theyre doing an okay. No one gave the fed a poor grade. In 2023, 17 answered poor. A pce report and jay powell testified on capitol hill saying in part rate cuts are coming. With that information these financial decisionmakers have rate cut expectations that are largely in line with the market, forecasting a cut between june and september. Important to note, no cut in the march to may meeting, but they did see a scenario where they would not cut until 2025. The feds go is to get it down 2 . A quarter say it will happen this year but the overwhelming majority say the inflation fight will take until 2025 or possibly even longer. Time now for a check on more of this mornings headlines. Nbcs Frances Rivera in new york with the latest. Great to see you. Hi, frank, good morning. A historic president ial rematch is in the work as the fresh round of primary results are in the works. They have each won enough delegates to become the presumptive nominees, essentially setting up a sequel to the 2020 election. Meanwhile the House Majority is getting smaller. Ken buck will be stepping down next week. He said he will not be running for reelection this year, but his early resignation took some of his colleagues off guard. Colorado governor pollack says a special election will take place june 25th to align with the already scheduled president ial primary. The new york jets have lost Aaron Rodgers once and could lose him again. The fourtime nfl mvp tops kennedys short list for vice president. Jesse ventura is also on that short list. Apartly that ive been in contact with rfk, and Aaron Rodgers talking regularly in the past month, frank. So we should know in about 30 days is what rfk is saying. Youre saying jesse ventura, former pro wrestler. I know hes the minnesota gove governor, but former prowrestler. Coming up, the largest customers of boeing sound the alarm for investors and wouldbe flyers. Cnbc celebrates womens herstory month. 50 women are innovating and transforming business. As we head to break, here is zoe a it is ceo kristin peck. It means delivering outstanding performance. I think to do that, youve got to start with curiosity. Be curious about the challenges in front of you. You have to have the commitment to go the long haul to do that. It often requires partnerships to come up with creative solutions. And last lit it requires agility to pivot when you need to. You know doug, e announcer cnbc cfo counsel brought to you by workday. A platform for a changing world. Billy idol . I mean wheres the skintight leather . My shoes are leather. Wheres the unnecessary zippers . That thing billy, rock star is just how doug feels when he uses workday. Thanks, rory. Ill show you rock star be a finance and hr rock star. Workday. For a changing world. Billy idol just stole your golf cart it is 5 30 in the new york city area. Theres a lot more. Investors shaking off a hotter than expected inflation with a record close this year. However stocks are fighting to and tend those gains. The clock may be ticking for tiktok. The lawmakers are expected to vote on the ban of that popular app. Why the move may be easier said than done and the ramifications of billions of dollars in business between the u. S. And china. And the ceos sound the alarm on the door plug blowout. Its wednesday, march 13th, 2024. Youre watching Worldwide Exchange right here on cnbc. Welcome back to Worldwide Exchange. Im frank holland. Were going to pick up with the u. S. Stock futures with the s p 500 coming off its 17th record close of the year. Taking a look at the bigger picture. The dow is closing higher. The nasdaq fractionally lower right now. Were digging into the dow premarket movers. Chevron, shares up about half a percent. Merck right behind it. Walmart in the third place spot, up about one third of 1 . Were checking the bond market this morning on the back of yesterdays cpi report. Take a look at yields we saw them tick up just a bit. The benchmark at 4. 15 , moving five basis points after that slightly higher than expected cpi report. Were looking at energy, specifically oil, rising a foursession losing streak. Right now were seeing a bit of a turnaround. Oils hitting the highs. Similar story for brent crude. Thats your morning setup. Now we want to turn your attention to capitol hill. They could decide the future of tiktok here in the u. S. This as the social media platform is reportedly planning to exhaust all legal channels before any kind of devesty tur from Parent Company bytedance. Emily wilkins joins us with much more on the story. Emily, good morning. The house is expected to pass a plan for tiktok. The road ahead is going to be tougher. Tiktok has ramped up lobbying efforts against the bill. Shou zi chew is expected to be in the u. S. And members are being told to call their members of congress. The creators were joined by a handful of progressive lawmakers including congressman maxwell frost who said the roughly sixmonth window tiktok would have to find a new owner under the bill wouldnt be enough time. Its unreasonable to believe in 180 days a buyer will be found and a deal could move forward, which would result in tiktok being banned. Whether its a year, two years, six months, a ban is a ban. The bill leave as clear path in the senate. Those i spoke with yesterday told me they Share National security concerns around the app but worry about other issues, freedom of speech, whether it singles out tiktok unconstitutionally, and the ramifications of getting writ of an app thats used by 170 million users. One of the bills main backers says the bill has been made to avoid pitfalls like measures too targets against one company. What our bill is a regulatory framework. Its prospective for companies controlled by a foreign adversary. Its a regulatory framework, not a punitive framework. Any bills simply dont attain in this case. Some senators told me theyre waiting to see what the house does before taking a closer look at the bill. A near unanimous vote today could put pressure on the senate to pass legislation, and, frank, well be keeping a close eye on that vote. Its expected around 10 00 a. M. A lot of eyes are on that vote. As you mentioned, 170 million users. Thats a lot of people and creators out there. I want to ask you about one person not on tiktok, former president donald trump. He was on cnbc a few days ago a talking quite a bit about tiktok. Have his comments went either way . Its always interesting to see which of his comments resound with the Republican Party or they say, no, were good. This seems to be one because its identified his concerns about meta more than his concerns about National Security, he didnt touch on the heart of why lawmakers are doing this, which are, of course, concerns that, via bytedance, that the Chinese Communist party could get access to americans data. Tiktok said if they asked for the data, they wouldnt give it, but i think theres a lot of mistrust and suspicion there, lots of questions, and thats what lawmakers are trying to target with the bill, frank. Ive heard several times they dont want to get rid of tiktok. Theyre perfectly fine with tiktok. The concern is the ties that i have to bytedance. Emily wilkins, thank you very much. Lets talk about the challenges of a tiktok ban. Joining me now, a long view global senior policy analyst and cnbc contributor. Its good to have you on a day like this. How are you . Good, frank, good to see you. You said this bill to ban tiktok, at least in the house, has remarkable bipartisan support. It is expected to pass the house. What happens after this . Does this have a chance in the senate . Look, i think its going to be much, much tougher than the senate, frank. I think it certainly has a chance especially given what were seeing. Theyre talking about National Security concerns, but, look, i think the very direct targeting of tick tock in the legislation with very prescriptive actions that they want to see take place will give it some pause in the senate. I think the senate is likely to soften the language, but my bet is we do get some sorts of tiktok action in this round. So you actually do think theres something that happens in the senate. They may adjust the bill, but yo e youre saying the president would sign the bill. Indeed. Speaking of the bill, we have an election coming up. The National Intelligence chief had comments. Avril haines said he cannot rule it out. How important is that . I think its a good point to make, frank. The public concerns that we know, understanding that were not privy to all the intel thats out there, the real concern is the app volumes up american tata, can influence American Public policy and also elections, and could be weaponized against american citizens. Weve seen some of the ability to influence outcomes or attempt to with with the way tiktok is trying to lobby against this divestiture bill. I think this is an interesting point. The counterpoint to that bill is there really has to be something there because this is a no break electoral benefit to biden given the number of americans and Young Americans using the app. To those of us watching, there has to be concern. Em will i wilkins said 170 mill. Tha thats a lot. What about d. C. And money. We know the sus question hannah firm has 17 stake in tiktok or bytedance. Some call it derisking, some call it decoupling. How does it play in effect . At the same time theres a lot of chinese tensions. Could this be the rhetorical straw on the back of a camel . Its a complicated question, but i know you can break it down. The important part about the tiktok battle werer seeing is just the concern many people have about the interconnectivity of these two economies and about, quite frankly, the advantage that china has. If they said this is how you need to move, i can not at think of a system where a u. S. Company, even a Chinese Company for that matter, would push back as aggressively to the degree that tiktok has done, that you would have chinese nationals trying to persuade the ccp this is the wrong action to take. There is some asymmetry here in the way in which things are happening in the u. S. china relationship that only gives National Security people here in washington more pause and more concern. Yes. A lot going on here. As a matter of fact, rand paul yesterday or the day before was saying us trying to be on tiktok is what china does to apps in china. People on both sides of the fence really pushing and pulling on this. Dewardwick mcneal, thank you for your time and insight. Thanks, frank. Boeing around new developments around the door plug blowout. The National Transportation safety board announcing it will hold a twoday investigative hearing on the incident involving the alaskan air flight, this as alaskan tells cnbc the maintenance was scheduled after the flight was finished. They so concerned about growing evidence of the problem that the boeing 737 max9, they wanted it to come out of service, but the airline chose to keep it flying with some restrictions. Alaskan airline now a chorus of ceos and some of the biggest, southwest, united, all discussing the impact of the crisis on their end, revealing theyre scaling back on flights and theyre also scaling back on their hiring plans as they anticipate getting fewer boeing planes than they originally had thought at the start of the year. Coming up, another buller bell of the market. Were talking about nvidia. How high banks think the stock can fly. Trader joes, it isnt orange chicken or cookie batter. Its tote bags. They sold for 1,000 on ebay. They sold at the store for 1 dollar each. Neil young returns to spotify. He cant continue to void every service if he wants his music to be heard, but he believes spotify has poor sound quality. Forget coffee breath. Mcdonalds is offering french fry perfume. Worldwide exchange coming up right 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. And welcome back to Worldwide Exchange. Were going to start with a market flash on shell. The energy giant is cutting about 20 of its jobs and deals team as part of its job to cut costs overall. See the shares moving up just about a quarter of 1 . Est to hike its price target on nvidia, moving it from 925 to 1100 a share. While there may be caution, nearly 990 surge this year thanks to a strong pipeline and compelling elevation. Jefferies is looking to upgrade southwest. And Goldman Sachs initiating royal caribbean. The cruise operator offers bestinclass execution with incremental ranges. Toyota, panasonic, nippon steel, and nissan among the Biggest Companies agreeing to Union Demands for wage increases. Theyve been looking at it. The moves now pave the way for a potential shift in Monetary Policy at the bank of japans meeting next week. Eus lawmakers are set to give fievl approval on the ai. It will signal how other countries look to regulate the redhot tech. And volkswagen expects vehicle orders to grow next month. The carmaker says it started the year with a clearly positive trend compared to last year as it focuses onramping up new vehicles and reducing costs. All right, coming up, the one word that every investor needs to know today, plus the hotter than expected cpi report not discountering our next guest. Why she says the bull market remains firmly intact. If you havent already, follow our podcast. If you miss Worldwide Exchange, check out spotify, podcasts, or other apps. Much more on Worldwide Exchange coming up after this. Welcome back to Worldwide Exchange. We start with a w. E. X. Wrapup. Theres a 2. 5 billion dollar intel grant that is scrapped. They were expecting another 10 billion from the c. H. I. P. S. Act. Shares are down 1. 1 . Griffin has a warning. The worst thing the fed could end up doing is cutting, pausing, and changing direction back toward higher rates. Coinbase announces a 1 billion debt deal. Shares of coinbase are up almost half a percent. Coinbase benefiting from renewed optimism of bitcoin which is hitting an alltime fresh high, on this show. Take a look at bitcoin right now trading at basically 73,260. Stocks, theyre looking to keep the records rolling after the s p 500 hit its 17th record close of the year yesterday. Hard to believe. 17, wow. But its not just the markets in the u. S. That are climbing to record or near recordhighs so far in 2024. In addition to the msci indexes. They have all touched fresh highs. Those six markets, they account for more than 75 of the market cap for the mscis allcountry world index. Also for the First Time Since 2021, nearly one third of the 47 markets included in that index, theyre trading within 5 of the recordhighs. For much more on this, lets bring in victoria greene. Shes an invest money officer and cnbc contributor. Always good to see you. Good morning, frank. Our friend jim cramer always likes to say theres a bull market somewhere. It looks like theres a bull market everywhere. How do you talk about it when you look at it . I like the u. S. Over the rest of the world. You beaver got to be careful. Theyre definitely waited to china, which has been a thorn in the side and not rallying along the bull market. Its not just the magnificent 7. But you have the granolas in europe. Vow interest to give it to Goldman Sachs for finding a better algorithm there. You have them rallying, india rallying, and others. Multiple sectors are lifted up. Multiple companies are trading at moving day average. I think its at 2 now. Theres a lot of optimism and its not just this narrowness thats been the focus since october. Your w. E. X. Word of the day for us, its a great alert. Im going to put out the word nerd. Its kobayashi as in kobayashi mer rue. If they go too quickly they risk inflation accelerating. Its a nowin classic star wars scenario. Maybe they can pull off a captain kirk and find a way to win the nonwinnable scenario, but it ee tough with inflation popping up a little bit. Not just one point in january. Now you have february coming in a little hot. The fed is in in a kobayashi meru. 100 . Great reference. Theres no mr. Spock on the side saying mr. Kirk cheated. Were getting to nerdy. What do you make of yesterday . Cpi was hotter. We saw the s p hit a new record. We saw a broadbased rally. What does that tell you . It tells us the markets are focused on more than just the fed. Yes, the fed is a big player, but, number one, expectations are still steady, which is more in line with the fed dot plot. Were going to have to watch what the fed says and the changes to the dot plot next week. Theyre saying, okay, the fed is restrictive. Theyre probably staying restrictive till the summer. Were still going to get cuts and it is likely were going to get cuts even if its lower. Now were seeing the swaps market realigning with what its saying. I like that better. We have a clear vision forward. Its going to be data dependent, to use powells favorite word. Theres potential. I want to get to your picks. The reported earnings coming up. Adobe and dicks sporting goods, why are you in favor of them . Theyre trading at alltime highs. Sure. Adobes coming back because they have the potential text to Video Technology but we feel like adobe can protect their moat. They need to show their product is superior, but theyve done great. We think they have a large runway to increase their annual recurring revenue. They hiked those about 40 . So they should continue to see Strong Revenue growth. Its going to be a lot about the jen ai. Theyve had strong showings. Theres still the trusted source for creative and edited imaging. Dicks, we really, really love their concept. We seen seen the higher end cop super and theyve done well. Great w. E. X. Word of the day kobayashi. Good to see you. That does it for us. For more insights on the markets go to cnbc. Com o. Have a great day. Squawk box is coming up next. You bring a lot back to civilian life. Leadership skills. Technical ability. And a drive to serve in new ways. Syracuse universitys Daniello Institute for veterans and military families has empowered more than 200,000 veterans to serve their communities and their careers. From professional certifications, to job training, to help navigating programs and services, we give veterans access to support from anywhere in the world. Business. Its not a ninetofive acce proposition. Its all day and into the night. Its all the things that keep this world turning. The gotos that keep us going. The places we cheer. And check in. They all choose the advanced Network Solutions and round the clock partnership from comcast business. See why comcast business powers more Small Businesses than anyone else. Get started for 49. 99 a month plus ask how to get up to an 800 prepaid card. Dont wait call today. Good morning. Alaskan airlines has now confirmed that the plane that suffered a door plug blowout was scheduled to be taken out of service for maintenance later that night. Details straight ahead. And the house is set to vote on a bill that could ban tiktok if its clie sneeze parent doesnt divest that platform. Now the ceo is focusing lobbying efforts on stopping the bill in the senate. And overnight adidas warning of a sales decline in north america that continues to sell off its remaining yeezy inventory. I still dont have one of those two of those i should say. Its wednesday, march 13th oh, my god, is it . My anniversary. What . My marriage. Oh, it is . Yes you just realized this . No. Happy anniversary, penelope. Squawk box begins right now. Good morning, everybody. Welcome to squawk box right 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. Happy anniversary. I got married on friday the 13th. And scottys birthday is the 15th. The ides of march