Stock rally. Its wednesday, october 25th, 2023, and youre watching Worldwide Exchange right here on cnbc. Good morning and welcome to Worldwide Exchange. Im frankholland. We kick off the hour with a check on u. S. Futures as the market had a positive day and the nasdaq had the best day of the week. The blue chips index at the tow would open up 50 points higher, however, the s p under pressure and the nasdaq more than 50 lower in the market. Also checking meta, almost a percent. We want to check the bond market, the 10year yield hovering but low. Take a look at yields right now. The benchmark at 4. 86. The 2year at 5. 5 . Were also looking at energy this morning coming off its lowest close in more than two weeks. In the green this morning at least fractionally at 83. 79 a barrel. Natural gas under some pressure, down half a percent. Turning our attention to the top story this morning, two very important reports from big tech accounts for about 10 of the entire market cap of the s p 500. Of course, were talking microsoft up 3. 5 and alphabet down about 6. 5 . Were going to toss things over to our Senior ReporterArjun Kharpal with much more on these reports. Good morning. Good morning. Lets dig into some of the numbers. It was the tale of two clouds that was in focus for investors. Microsofts intelligent cloud segment made 24. 26 million in revenue smashing past consensus. It jumped ahead of consensus. It helps market shares after hours. There was commentary around ai, the big focus for investors. Ai usage led to 3 Percentage Points on ai growth. Clearly beginning to pay dividends here. Meanwhile alphabets google cloud unit posting in the Third Quarter below expectations while profits remain slim. Alphabets core advertising business remaining resilient, but it needed to show it could show the massive share rally weve seen this year. The market clearly was disappointed by what it saw in cloud computing, investors hoping to see them. Well have to wait a little bit longer. There is also a lot of excitement about microsofts ai copilot in this Earnings Report to get more details about how it plans to compete when it comes to ai and cloud . Yes. Just on the copilot, its 30 per month. Its sort of like a chatgpt. Its gotten a lot of excitement from investors hoping it can boost microsofts revenues. The cfo tempered the expecexpectation si saying it would grow gradualy over time. Its taken aen early lead in this ai race amongst the tech giants. For alphabet, thats not the case. We didnt hear much how much ai was going to contribute with revenue. But google is soon expected to launch a foundational model called gemini. Investors hope this will boost the companys Cloud Division and open up some of the new ai revenues for the company, frank. Arjun kharpal, live in london. Time for a check on some of our our top corporate stories. Silvana henao is here with us now. California is kicking cruise units of gm off the roads saying the vehicles are not safe for public operation. Officials allege cruise misrepresented the safety of the technology it used in their vehicles after national Highway Traffic Safety Administration opened up an investigation last week. Visa shares moving lower despite an earnings beat and strong guidance boosted by an ongoing rebound in international travel. For the quarter, Free Cash Flow came in at over 6. 5 billion compared to the 7. 4 billion exp expected. The company also announcing its buying back more stock. Shares of sunpower also sliding down 9. 5 in premarket. Its calling the Financial Statements unreliable reflection of a cost of revenue. A review into the Financial Impact of the errors is ongoing and is subject to change and comes amid a massive downtrend for stock, with shares nearly down 75 , frank. Shares down almost 9. 5 , silvana. Well see you later on in the show. Thank you. Turning our attention back to washington, d. C. , all the drama down there continues this morning. House republicans floating yet another name to possibly unify the party. Nbcs brie jackson joins us now from washington. Good morning. Reporter good morning, frank. Last night mike johnson was chosen as the republican nominee for House Speaker and hes now seeking to achieve something the last nominees could not do, and thats to earn 217 votes from his own party to win the gavel. Last night he told supporters hes certain he can secure those votes. The louisiana congressman could be put to a full test today. Hes well liked in the Republican Party and he has for the most part avoided making Many Political enemies on capitol hill. They had a roll call vote to see how much support he had. He said there were no votes against him, however, some members were absent from that voting. He said hed reach out to them overnight. Now the previous nominee, tom emmer, he only lasted about four hours as the speaker nominee yesterday before he realizeded he didnt have enough support and he dropped out. So now republicans are focused on their new nominee, mike johnson. There are a number of nominees in the ring. Remember, Kevin Mccarthy was removed three weeks ago. Is it actually possible he can return . Reporter three sources told cnbc news Kevin Mccarthy started floating the idea and jim jordan would be the assistant speaker. The idea would be to unite the different factions of the party. Its unclear if it would gain traction among republicans. When asked why this idea, one gop replied, were desperate. Frank . Brie jackson in washington, d. C. , with all the drama. Weve got a lots more to come on Worldwide Exchange including the one word investors have to know today. First, what one market guru says needs to happen to spark a yearend market rally. Piper sands guest coming up. We speak with one invisitor playing the long game and we ask if she thinks goleogs long side move isnt an overreaction. We have a busy day ahead when Worldwide Exchange returns. Stay with us. As an independent financial advisor, i stand by these promises. As a fiduciary, i promise to be the financial steward that you and your family need. I promise to put your longterm Financial Wellbeing above any short term transaction. Everyone has a big picture. My job is to help you invest in yours. Charles schwab is proud to support the independent Financial Advisors who are passionately dedicated to helping people achieve their financial goals. Visit findyourindependentadvisor. Com youre probably not easily persuaded to switch visit mobile providers for your business. But what if we told you its possible that comcast business mobile can save you up to 75 a year on your wireless bill versus the big three carriers . Have we piqued your interest . You can get two unlimited lines for just 30 each a month. There are no Term Contracts or line activation fees. And you can bring your own device. Oh, and all on the most reliable 5g mobile network nationwide. Wireless that works for you. Its not just possible. Welcome back to Worldwide Exchange. Taking a look at futures. The dow in the green. The nasdaq down 4. 5 following the alphabet earnings. Meta also down after its earnings ahead of the bell. Lets see how europe is shaping up. Joumanna bercetche in our london room with much more on the early action. Good morning. Good morning, frank. Lets start off with the asian markets. It was a much more positive session than weve had as of late. These markets are cheered on by profits of extra fiscal stimulus coming through from the chinese policy makers. They approved a 1 trillion bond issuance and the funds will be used to rebuild disaster zones and build infrastructure. The hang seng also up 0 pnlts 6 . The nikkei coming off a low here. In europe its a slightly different picture. Today were focused on earnings season. Were seeing major disappointments in the payment space, the likes of worldline right at the bottom of the stoxx 600 down 40 today. Its dragging down other names in the sector as well. Ftse 100, the relative outperformer. Were seeing moderate green in sources and miners. For the most park the Banking Sector is under pressure. Barclays disappointing yesterday with their earnings. Xetra dax, you can see down 3. 5 and cac 40 down almost 0. 4 . Let me take you to the luxury space. Kering shares have hit their lowest level since march 2020 after sales fell, missing estimates. Gucci and Saint Laurent fell respectively. Not only is it at the bottom but also pulling down the luxury space as a whole. I also spoke about banking earnings. Its a bit of a tale of two halves, barclays disappointing, but very strong numbers come through. You can see the stock is up 6 today in trading amongst the best performers after the german lender said it may return more capital to shareholders in the form of share dividends and buybacks. Theyre in for the best day since march. Theyve been trading sideways for the better part of this year, but today theyve shot northward right at the top of the dax. Frank . Joumanna, thank you very much. Joumanna bercetche live in our newsroom. Turning our attention back to the u. S. , the 10year is inching slightly higher, right now about 4. 86 . Its largely been in retreat mode. Our next believes that downward trend could continue and we could see a downside by the end of this year. Craig johnson is the chief market technician of Piper Sandler. Good morning. Its great to have you here. Good morning. Its 48. 25, a 30 upside and you have a new forecast for the 10year yield. Give it to us. Which way is it going . Frank, i think the 10year bond yield is going to be headed lower from a technical perspective. Were seeing a divergence happen. As we saw it reach that level, weve been watching the momentum trailing off. In the technical world we call that a divergent move. When we step back, weve got to pull out the longterm charts, frank. Weve got to go back and look at the longterm secular change thats happening. Ill just note since 1981 weve been in a down trend. In 2022, we finally reversed that down trend. Frank, when you accelerate through the down trend reversals, you get a pullback and recess support. I would not be surprised to see the 10year bond yield have a 3 in the front and be as close as 3. 5 because i do think you need to see bond yields come back and check the area which was resistance, which would now be support. I think a lot of investors would certainly be encouraged by that move. Im sure a lot of investors would. A pretty bold prediction. Youre saying its going to move more than a percent. Youll have to mark your calendar. Well have to meet up in december to see if this all works out. Any time. We know what your price target is, but lets look. Its just above its twoday average now for the near term. We know you say s p ends at 48. 25. But what are the charts tellinging you about s p action . The price action for the s p, we made the lows in october of 2022, and on a near term basis, frank, weve been trying to weve been seeing the market pulling back. The s p is pulling back. Were off midsingle digits from where we were in the july highs. But were finding support around the 4200 level. Its also been a retracement level. Lower end of the channel. 200day moving average. All of those things are here. At this point in time the market has gotten about to be pretty oversold inside of the s p 500. I think its going about to be very difficult, sort of like pushing a beach ball below the waterline in a pool. Its going to be harder to pull from here. I think youre going to have to see it move up. True confirmation is going to happen, that the trend is reemerging and reasserting itself when you get back to the 20day moving average and 50day moving average, which is around 43. 76 for the moving day. I think thats yet to come. As we get through this earning season, frank, i definitely think the s p will finally get there. I want to talk about something outside of earning season right now. Youre not a stock picker, but you add a stock to the Piper Sandler selectives Opportunity Fund. This one is a favorite here on Worldwide Exchange. Its an energy drink, celsius. I drink it myself. What makes this a stock to add to your Opportunity Fund . Weve seen the shares pull back appreciably and weve gone back to the support line. This is a stock thats followed fundamentally here. Its among the fundamental names. Technically weve had a nice correction and it looks like momentum is sort of rebuilding whether youre looking at rsi and those technical indicators, frank. I think theres a technical upside and we like it and hence we added it into the portfolio. Shares up more than 60 . Its a favorite of our jim cramer. I was in cramers office. Theres like a mountain of celsius in there. I had to climb up and have one. It was amazing. Craig johnson, great to see you. The 10year yield is going to go below 4 . Well have to follow you. Coming up on Worldwide Exchange, Facebooks Meta platform getting set to change. Our Julia Boorstin will break it down. snehi you need to watch after the close. Were back right after this. That time to reflect. To be like wow. What did i do to get here . city ambient noise right. Work. You worked hard and its time for a bank thatll work hard for you. Everbank brings security and a guarantee. That youll earn a yield in the top 5 of competitive accounts. Going, got you where you want to be. Were the partners for your next move. Everbank. Advantage, you adventurous music be ready for any market with a liquid etf. Get in and out with dia. Movers. Were going to start with snap, initially soaring on a top and bottom line beat before declining on adspending concerns. The Company Warning a number of advertisers theyve paused spending in the face of the israel hamas war and announcing it will not announce q4 guidance following the unpredictable nature of war. Shares up 1. 5 . Texas instruments offering a disappointing revenue for the current period saying it expects revenue to continue slumping. Its breaking three years of consecutive sales growth. Shares of ti down 5 . And stride posts a record compared to the 425 million estimated. Eps, that was also a major beat coming in at 11 Cents Per Share compares to the estimate of 37 Cents Per Share loss. You can see those shares up just over 11 . Lets get a check of more of this mornings headlines. Lets check in with phillip mena. Good morning. Lets start with the situation growing more dire in gaza. After more than two weeks, Palestinian HealthOfficials Say more than 700 are dead. More than half on tuesday alone were children. Secretary of state Antony Blinken is pa urging a pause nbombing. A hurricane slammed into mexico a few hours ago. Hurricane otis gained strength before landing. Forecasters are warning of catastrophic damage. The National Hurricane center is calling it a nightmare scenario, one of the strongest storms to hit that area. Finally the world series matchup is set. The Arizona Diamondbacks outlasted the Philadelphia Phillies at Citizens Bank park, punching their ticket to the world series for the First Time Since their only appearance in victory in 2001, the dbacks will head to arlington on friday to face the Texas Rangers for the first game of the series. Im an astros fan. If i remember correctly, youre a phillies fan, so this one is going to be very, very tough for us to watch. You know, its not going to be tough for me, phillip. My team, we played hard, we didnt cheat. We just lost. We just lost. That was so low. My producers, a shoutout to them. They insisted this was in here because im from philly and a philadelphia sports fan. Hats off. Sorry about your astros. Kicking me when im doing. Have a great day. Ahead on Worldwide Exchange, why the transports could be at a tipping point. Two companies and their results, what they may be saying about the u. S. Economy at large. If you havent already, follow our podcast. Check us out on apple, spotify, and other podcast apps. Worldwide exchange will be back right after this. Stay with us. Introducing watsonx a platform designed to multiply output by training ai with your data. When you watsonx your business, you can build ai to help coders code faster, Customer Service respond quicker, and employees handle repetitive tasks in less time. Lets create ai that transforms business with watsonx. Ibm. Lets create. 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. With cirkul, your water is deliciously flavored at the turn of a dial, with zero sugar and zero Worldwide Exchange will be over 40 flavors, so your water can be as unique as you are. Try cirkul. Your water, your way. Now with even more flavors. Available at walmart or drinkcirkul. Com. Its right around 5 30 in the new york city area. Theres a lot more on Worldwide Exchange. Heres whats on deck. The s p 500 dropping. Also point