Trump. Plus, apple now closing in on crossing below a key technical level. We debate whether growing action from u. S. Regulators will push it over the edge, and then later in the show, it is day three of our week long spercial, looking for Fourth Quarter ideas. Its wednesday, september 27th, 2023. And youre watching Worldwide Exchange right here on cnbc. Good morning, welcome to Worldwide Exchange, im frank holland. Lets get you ready to start the day. Take a look at this, futures are in the green across the board. The dow looks like it would open 100 points higher, the s p and nasdaq just shy of a half percent higher. Closing down more than 1 . Also his fifth down day in the last six. The dow now on pace for its worst month since may, and on pace for a second down month in a row along with the s p and nasdaq which you can see right here theyre tracking for the worst month since september. All of this is the prospect of higher for longer. It becomes a reality for many. The tenyear sitting at 2007 highs. Right now at 4. 50, basically flat, the twoyear note, back above 4 . Were looking at the 30year since 2011 highs at 4. 63. Were also looking at the energy market. Taking a look at oil. As we talk about higher for longer, we have seen fluctuations in the oil market this morning. Wti crude, the u. S. Benchmark up higher back well above 90 bucks a barrel. Brent crude, similar story, just under 1 . Natural gas making a move to the up side, up over 1 2 . Also, we got a big stock story this morning, we continue to watch amazon after the monster stock move yesterday on the news that the ftc is going after the ecommerce and cloud giant. Fractionally higher, you can see the big dip yesterday. You see the downside move. Shares are down week to date. Well continue to watch this. Well have much more on the regulatory head winds facing tech later on the show. We want to bring in news street Adviser Group founder, delano sequary. Always great to have you here gl good morning. Bad month for the markets all around. Were dealing with higher for longer. What are you telling your clients about their portfolios and the situation that seems to be shocking the market. Were telling them to stick to the plan. You were just talking about the storied energy prices, if you look at deep into cpi, food prices have steadily been going higher. It is making it harder, if you look at it pulling back for the feds to kind of realize either employment is going to tick higher or inflation will go lower, and i think those are the things that, you know, is being juggled right now. When youre also looking at the tenyear yields you mentioned moving up, the bond markets seeming to indicate symome of t same things. The yield kucurve looking to invert. Higher for longer is something thats probably going to happen. Potentially seeing a rate hike before the year is out, and potentially also in 2024, so im still waiting for things to price into the market which i dont think have fully priced in yet. Probably going to happen. We dont talk a lot about it, but pce coming up on friday. You look at the chart, generally going lower. Last month, it did tick up one basis point. Are you looking ahead to that . What does that make you think about the feds path going forward. They told us higher for longer. Does this cement it when we look at the data if there is a tick back up . 100 . Looking back at the data we got over the past few weeks, thats it for me. From my standpoint, im looking at what makes the most sense for investors going forward. And i think a lot of investors are going to be looking for defensive plays. A lot of investors looking for yield plays and generally places where they feel like their portfolio will be safe to really overcome any sort of volatility. I want to bounce something off of you. Ahead of tomorrows delivering alpha summit, scan the qr code on your screen or go to madmoney. Cnbc madmoney cnbc. Com events to register. Where to find the best returns for the remainder of this year. Take a look at the data, 27 says shortterm treasuries, 23 says the s p 500, the remainder were split between other ideas. 0 for bitcoin. Where do you land when it comes to this . 0 for bitcoin. Not surprising. But i think, you know, i dont want to be a run runner here. I think shortterm treasuries looks like a smart move for the remainder of the year. Basically the fact that i dont know all of what the moves the potential fed will make will be priced in. Thats an area where people potentially get yield and honestly, protect their portfolio. I think if folks out there, investors are looking at areas in stocks that are defensive in nature, if you look at health care and some areas there, those have actually not been so g glamorous year to date, but potentially moving forward could be, if youre looking at stocks, strong dividend yield, attractive yields and growing at a steady pace, those might be also a strong play for investors. Delano sapuro, thank you very much. Turning our attention to washington, days to go to the october 1st deadline, no deal in sight to avert a federal government shutdown. Thats not stopping the senate from taking measures all of its own. Drew petrimoulx is in washington. Neither seems likely to find a solution that avoids this government shutdown. It is now an order to consider amendment with the house making little progress, the senate is moving forward with its own shortterm funding plan to keep the government running through november. This is a temporary solution, a bridge towards cooperation and a way from extremism, and it will allow us to keep working to fully fund the federal government and spare American Families the pain of a shutdown. Reporter the plan maintains current levels of Government Spending plus additional funding for ukraine and disaster relief, but faces dim prospects in the republicancontrolled house. In the house well take up ours. I did talk to leader mcconnell tonight. Reporter Speaker Mccarthy says the house will put forward its own temporary spending plan before the end of the week that also focuses on border security. Its unclear if mccarthy has the votes to pass it. This place is broken, and we need to stop spending the way we are. We need to get spending under control, and it should be the top priority. Reporter with the shutdown looming, federal agencies getting contingency plans in place ahead of the september 30th deadline. This is so unnecessary. This doesnt need to happen. Reporter a shutdown would impact a broad array of federal programs from prek to agriculture. 4 million federal workers will be affected with some being furloughed and others being forced to work without pay. Now, late tuesday, the house did take the first steps toward passing longterm spending bills. They would likely face stiff opposition in the senate and do little to avoid this shutdown. On capitol hill, im drew. The one word investors have to note today. But first, its not just wall street coming to terms with higher for longer, so are ceos across all sectors of the u. S. Economy. That includes my next guest. We speak with the ceo of jack henry and associates. Plus, President Biden becomes the first sitting u. S. President to visit a picket line voicing his support for workers. Next up is former President Trump. We are in detroit with a live report, and we he ava very busy hour still ahead when Worldwide Exchange returns. Stay with us. 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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 the dow is up just about a hundred points in the premarket, the s p and nasdaq up 1 2 . Lets see how europe is shaping up as the trading day gets underway. We have Julianna Tatelbaum live in our london newsroom with much more in the early action. Julia, good morning. Frank, good morning. European markets have been off to a somewhat muted start. Right now, we are hovering around the flat line. We have come back off the highs of the morning. We were trading higher across the board. Now you can see ftse in italy teetering between gains and losses this morning, after the main benchmark in europe logged a 0. 6 lost yesterday. We saw selling in europe yesterday not to the same extent as wall street but stabilization coming through this morning. Breaking it down by sector,i weve got h and m in focus from a corporate perspective. Delivering a q3 earnings update. Profit beating estimates thanks to cost cutting. But did warn of a slowdown in sales in september. That stock trading toward the top of the stock 600. Technology the leading sector this morning, 1 higher, media and industrials holding up well. On the downside, utilities the big under performer. That basket of stocks down 1. 4 . Telecom and insurance lagging s somewhat. Our Julianna Tatelbaum live in our london newsroom. Coming up on Worldwide Exchange, what President Biden told striking auto workers yesterday and what President Trump anpls to do tonight instead of debating fellow candidates. Were live in detroit right after this. Stick with us. Meet the portable blender we can barely keep in stock. 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After nearly 150 days, the hollywood Writers Strike is officially over. The Writers Guild of america voting unanimously to lift the restraining order on members after reaching the deal with studios. The agreement which lasts until may 2026 includes a 5 minimum pay increase upon approval along more pay bumps over the next two years. It adds that ai cannot write or rewrite literary material and ai generated material will not be considered source material. Cofounder and chief product officer of peloton is leaving the company after nearly 12 years. Hell be replaced by Nick Caldwell who previously held leadership positions at twitter, google and microsoft. And the u. S. Banking industry seeing a major first, s p global revealing the industrys total deposits cleaned year over year for the First Time Since going back to 1994. Thats down nearly 5 to just over 17 trillion. S p says Charles Schwab saw the largest decrease, and thats primarily due to outflows from br brok brokerage acts, frank. Well see you later in the show. Borrowers are facing increased pressure from rising rates and the prospect of higher for longer with 270 billion of leverage loans at risk of default. The default rate for the past 12 months sitting at the highest level since 2014. One of the companies with a finger on the pulse of it all, jack henry, a Software Financial company with over 7,000 customers ranging from mid sized and regional banks to credit unions. Shares are down 12 since the most recent earnings. Guidance was below what the street expected. Joining me now to discuss banking, Cloud Computing and the impact of higher rates, david foss, ceo of jack henry and associates. Good morning, good to have you here. Good morning, frank, good to be with you. Lets start with this, higher for longer, shock the market a little bit, how is it impacting your business, and how is it impacting your customer, midsized and regional banks and credit unions. Its an interesting time in banking. A lot of people refer to whats happening to regional banks a crisis. I wouldnt call it a crisis. In the report you just shared, for example, the outflow of deposits, much of that is attributed to the fact that there was a big inflow of deposits when stimulus checks were going out. A lot of balances increased and consumer accounts and business accounts with ppp. Now that money has been spent or is being spent, and so theres a drain on those deposits that have been made over the last couple of years as a result of the covid stimulus money, and couple that with whats happening in general, with regard to banking. So a lot of concern about commercial real estate. When you look at the regional banking space we served as opposed to the tier one banks, most of our Financial Institutions are not big into office space. Theyre in to commercial real estate that look like manufacturing facilities and warehouses, those types of things, although, there is certainly activity that is somewhat negative in the regional banking space, our customers by and large have not been affected in any major way by whats happening in the overall economy. I want to talk about your business. Youre always looking for a deal, a big m and a guy, higher cost of capital, rates on the tenyear to 5 . Does that change your opinion of m and a, does that change how your board looks at it . It has been an interesting conversa conversation lately, and we have been serial acquirers, we acquired 32 companies at jack henry. This change in the Interest Rate environment is a big part of the conversation now, whereas for quite some time with cost of capital being almost nothing, you know, now the conversation is different. So it is part of the calculus now. When were looking at an acquisition, we have to factor in the impact of the interest on that debt when we take on debt to do the acquisition, and what is the longterm impact. As opposed to other uses of capital. We havent been a big buyer of our own stock. We do that once in a while. Now the idea of stock repurchases is much more on the table as kind of a comparative point to doing an acquisition than it has been over the past couple, three years. Its interesting a shift in strategy. You mentioned you have done a couple of dozen deals since you have taken over. The regional banks, they are down over 20 since the collapse of svb. You know, after it happened, we heard theres going to be a lot of bank consolidation, m and a deposits would move to bigger banks. You have your finger on the pulse, you provide software to do different types of transactions, what are you seeing and hearing . Is there going to be m and a coming up that hasnt happened yet . What are you hearing . First off, not a big outflow of deposits from our customers into other institutions. That was certainly the concern when Silicon Valley bank failed and the other couple that happened after that. But that was not really a major impact to our customers. The impact was, as i mentioned earlier, more just kind of normal spending that was happening because people have this build up in cash. On the topic of bank m and a, however, theres definitely a lot of demand out there for m and a. A lot of bankers are looking to acquire. The challenge has been for those public institutions, their stock has been impacted and so they feel like they wouldnt get the valuation that they would expect for their franchise, the buyers dont feel like they have a currency to use to do m and a, and so m and a has really come to almost a stop. I wont say its literally a stop. Very little m and a the last months and years. Theres a lot of demand out there. Im speaking in january called acquire, reacquire. The point of the conference is people coming in to try to match up buyers and sellers. I would expect by january when im at that conference, m and a will be happening again in the banking space. David foss, you would certainly know, and by the way, i just want to hit on this, one of the reason your guidance was lower is you change how you report revenue after m and a with your customers, i want to give you the credit. David foss, always great to see you. Thank you for your insight on banking, Cloud Computing and m and a, good to see you. Thank you, frank. A new thing were doing on the show, today, 42, thats how many weeks of income it would take a typical American Household to buy a new car. Up from 33 weeks a few years ago, three years ago to be impact. According to mark zandi, American Consumers feeling the pinch of rising rates, and the analysts say the auto worker strikes will not help the situation. President biden met with