Ahead of the open on the unexpected and welcome profit beat. Getting set for the latest on Consumer Prices and what it could mean for the fed decision next week. Its friday, april 26th, 2024. Youre watching Worldwide Exchange right here on cnbc good morning and welcome to Worldwide Exchange. Were coming to you live from cnbc london. Thank you for being with us on friday morning lets kickoff the check after whipsaw action yesterday with the major averages closing off session lows offer the weaker than expected gdp print and what was the busiest day of the First Quarter earnings season. Look at the beats. You see they are in the green. Nasdaq up 1 the dow looking like they would open 60 points higher. S p up. 75 . The big story is big tech led by alphabet and what you could call a triple crown Earnings ReportFirst Quarter revenue and net income ahead of estimates. 17 billion in Free Cash Flow announcing the Quarterly Dividend and 70 billion Share Buyback program. The stock is popping after hours trading up 11 it is set to join the 2 trillion Market Cap Club at the open microsoft with the top and bottom line fiscal Third Quarter results above estimates. Revenue growth was a bit weaker than expected. Cap ex is high with Satya Nadella telling shareholders to expect more of the same in the coming quarters. And then Snapchat Parent Company with snap with beats all around and earnings and profit revenue and daily active users beat. Snap shares up over 23 . And trying to keep the equity gains in check with the twoyear note hovering at 5 yield ahead of the pce Inflation Report. The twoyear yield popping up at 4. 99 it crossed the 5 yearold yestyiel yesterday. Thats the setup joining me now is Sophie Lundyates and ryan from the carson group i want to start off with the report it came after weaker than expected gdp which is counterintuitive of economic reports work in recent weeks it has been the hotter report leads to the selloff were you surprised by this or is this part of the seasonality of the Election Year . Frank, good morning thank you for having me back after 30 rally over the past year, the huge rally off the october lows, you see i indigestion and then you get a surprise rally look at the gdp. Consumption was strong parts of the economy mattered. Imports and exports took away 1 of the dgdp. What upset the apple cart was inflation data pce. Monthly pce comes in later today. To put a bow on this, you look at the quarterly data. Most of the Financial Services fees are higher. Why is that . The stock market did great last year that is the reason the quarterly pce was hotter we are anxious for today i know the last two months have been rocky we think today could bring good news and the market look past the gdp number you have to be impressed with the reversal 24 hours ago, things were ugly now were doing better. Sophie, coming over to you. Gdp appeared to show the impact of higher rates on the economy and leading to a bit of a slowdown in your mind, that gdp report, does it have any read on the tech trade we are seeing the markets move higher with alphabet and microsoft. The macro picture is always going to effect super Growth Stocks liooksikes like this things are more muted than they usually would be the market is far more interested with the outlook statements and pure play individual stock stories and growth outlooks and runway for a. I. It does matter if we see dramatic moves in either side with the macro that will affect appetite for growth Growth Stocks. However, the macro is more diluted than in previous times i want to go back to gdp. One data point accelerated up over priv3 sophie, microsoft increased cap ex by 80 . Alphabet by 91 . A day ago, meta got dinged for that why were they rewarded for the huge cap ex . That is a good way to state that there is a reason for this primarily, the market is spooked by what meta is doing. The strategy behind that increase in accelerated spending is less clear cut than it is for the likes of microsoft in particular for example, the a. I. For microsoft is a lot clearlier tit is for meta. There is not the tried and tested track record. It is a leap of faith. I have the right ideas and the spending will payoff microsoft has a clear track record of already pulling it off. Thats why the market is a lot jumpy around metas plans. Ryan, back over to you. You believe pce is cooler than expected you believe it will be a positive surprise here is this a market moving economic report or has this already been figured out that we are going to take a few more for the fed to make a definitive decision it wellill take a few more positive Inflation Reports we have not had too many we could see a pop if inflation after yesterdays worry after looking deeper in the quarterly pce number you look at what is going on we have unit labor production which is low high productivity. Wages are strong, but coming back down. There are parts of inflation that are sticky. Shelter which is what people have talked about for a while now. It is not a perfect scenario we are optimistic we will have two cuts this year i know not many thought that three months ago, everybody was saying seven cuts. We may see three cuts. Now the pendulum has swung no cuts or a hike. We will see more data. Ryan, i want to jump in your forecast is two cuts. Some people believe zero cuts. Is it important we get two cuts or the fed indicates we get cuts to kieep the rally going the pull backs happen we have a huge rally it could be any reason i think just as long as the fed continues to give a clue they will not hike and the hiking cycle is done, which they have because that is what they have given. At the end of the day, we have seen potential cuts baecause the economy is strong and we continue to see higher Earnings Growth 12 months out those are the things that truly matter and consumption at 200,000 jobs every month there are still positives, frank, with overweight equities. Once we get through the seasonal lull, we will get a summer rally. You tend to see that a lot in the Election Year. Sell in may and go away. We will know this. The worst six months of the year are in strong Election Years. Sophie, the last word right now. Ryan believes we could see two cuts this year we have seen the magnificent seven mega cap trade breakdown since jay powell said rates will stay higher for as long as needed is this pce report important investors have turned their back on tech with the rate cut path become less clear. It is very important because it speaks to the fact that where we are with inflation now which is moving in the right direction. The last few points of inflation are sticky i know we are all sick of hearing that word. What we know is all of the spending that can be pulled out of the economy has already happened what is left is entrenched that is problematic. That is why we see heightened nerves it matters to mega cap tech. We dont want to see Interest Rates protracted as i was stating earlier, what will move the dial more are the comments on a. I. And outlook and who will win this very interesting race that were in the middle of at the moment. Two more big reports to go. Apple and amazon sophie and ryan, thank you very much for more on what is driving the markets, head to cnbc pro at cnbc. Com pro busy day stateside not to be outdone by the action in london. Silvia amaro is here with me silvia, you mentioned yesterday we were 300 companies reporting, but today is 100 not as busy as yesterday, but a very busy day for investors. We are hearing from 100 Companies Across the continent i want to bring you the highlights so far. Lets talk about airbus. They reported a miss on the First Quarter operating profit down 25 on the year at 577 million euro however, the planemaker is sticking to the guidance for the year and raising its a350 production target. You can see at the moment slhare are moving lower by 2. 4 i want to take you to another french stock remy reported 0. 7 decline in the Fourth Quarter sales cognac maker has seen an im improvement in china sales declined ahead of the expectations and then total energies dropped 22 on the year in the First Quarter as higher refining margins brought on a sharp fall of profits the oil and gas company will buy back 2 billion of shares this your and declared the first interim dividend of 79 cents per shear. That boosted the stock a little bit. Lets see what else happens today, frank no doubt, a very busy day for investors over here in europe. Silvia, thank you very much. We have a lot more to come here on Worldwide Exchange, including the one word that investors have to know today first, more on the big tech results as we dig into what snap is doing right now and what meta is doing very wrong. Shares of paramount global popping as takeover talks appear to be moving forward and later, why intel continues to fall behind in the a. I. Rat race. A very busy hour still ahead when Worldwide Exchange returns. Stay with us business. Its not a ninetofive 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. Welcome back to Worldwide Exchange. Time for the corporate stories check with Silvana Henao in new york good morning, frank jpmorgan chases Ceo Jamie Dimon reiterating the skepticism with the potential for the u. S. Economy to achieve a soft landing. In a new interview, dimon cautioned citing sticky inflation rates. He said he is worried and inflation may thought go away as people expect. Im not talking about this year. Im talking about 2025 or 2026 walmart announcing rob walton, the longest serving member of the retailers board and oldest son of sam walton, is stepping down from the board walmart revealing it nominated the chipotle Ceo Brian Niccol to replace walton if elected, he would be the fifth added to the board since 2017. And paramount global and skydance are moving closer to a deal to merge the companies. Sources telling cnbc the two sides are narrowing in on how to value skydance assets and how to merger the company those sources are adding skydance and equity backers are shooting to finalize the terms of the deal by next month. Frank. Interesting a lot of movement in the streaming space. A lot going on silvana, thank you time for the big money movers shares of intel are sinking after the chipmaker posted mixed results and weaker guidance for the quarter. Shares down 7. 5 First Quarter sales coming up short leading investors to believe the bottom for intel is not in just yet despite comments from Ceo Pat Gelsinger to have Revenue Growth to strengthen throughout the year and into 2025 thanks to a. I. And what he says is a delayed refresh cycle. Gelsinger adding that growth should start later this year we delivered a solid q1 we met revenue we beat on eps we gave an outlook for first half to second half. A much stronger second half outlook with growth across every business forecast for the second half somewhat like the market indicates and maybe market weakness in the first half of the year were working through that a dim forecast overshadowing roku warning of a higher growth warning ahead with the tough growth rate comparisons with the pricing increases. Shares of roku down 3. 5 skechers reporting a record quarter for sales thanks to new products and surge in growth demand the sneakermaker is raising guidance of 10 billion by 2026. Shares up more than 11 . For more on the quarter, catch John Vandemore today at 11 00 a. M. More Worldwide Exchange coming up after the break. Stay with us with gold and copper prices pushing towards alltime highs, u. S. Gold corp is advancing its environmentally friendly gold and Copper Mining project and creating american jobs in mining friendly wyoming. With a Proven Management team and board, a tight share structure, and a solid cash balance, u. S. Golds portfolio of worldclass assets are creating American Growth and homegrown Strategic Metals as the us moves towards an electrified future. grunting corp. 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 salesforce rebounding on reports over talks to acquire informatic have broken off. The company has a growing need for Data Management tools. Data is foundational to a. I from the data in the training models and fine tuning and data used for augmented innovation. That is giving context to the large language model to um prove accuracy and relevance salesforce announcing ability of the copilot to manage data. Of course, salesforce is one looking to monetize a. I. Co copilot. Adoption is still thin questionn the emerging tech. Lets get othe latest headlines with richard lui in new york most justices seemed in favor of protection from criminal charges, but not the absolute immunity former President Trump is requesting. T at protests grow on college campuses, the university of Southern California cancelling the may commencement ceremony. That event is attended by 65,000 people the University Said it would take too long to process the guests with the security measures in it place with the protests. Offense is the name of the game on the first night of the 2024 nfl draft Chicago Bears drafted usc quarterback williams the record six quarterbacks were taken in the first round williams was followed by lsu heisman winner daniels selected by the commanders and drake maye is set to kickoff a new era for the new England Patriots all of that on the first day frank, back to you. Thank you, richard. Before we head to break, we are watching shares of boyd gaming First Quarter revenue coming in line with estimates. Earnings have fallen short the company said Severe Weather hit the midwest hard in the quarter and competition on the strip remain intense shares down just over 8. 5 . Were back right after this. I dont want you to move. Im gonna miss you so much. You realize well have internet waiting for us at the new place, right . Oh, we know. We just like making a scene. Transferring your services has never been easier. Get connected on the day of your move with the xfinity app. Can i sleep over at your new place . Can katie sleep over tonight . Sure, honey this generation is so dramatic move with xfinity. It is almost 5 30 a. M. In the new york city area and 10 30 a. M. Here in london. Heres whats on deck. Investors looking for the move in inflation key part of the bump issing big tech earnings after the Company Confirms the may fall behind in the a. I. Race. And investment shows early signs of paying off for microsoft. It is friday, april 26th, 2024 you are watching Worldwide Exchange here on cnbc welcome back to Worldwide Exchange. Im Frank Holland coming to you from cnbc london lets get you ready on the trading day. We pick up the stock futures after what was a whipsaw session yesterday. We saw the major session lows close off the disappointing First Quarter gdp print and earnings miss. Big reversal it looks like the dow would open up 40 points higher. Nasdaq is the big winner over 1 high near prer in the premarket the economist expect core prices to rise 2. 7 year over year. A slight particular lower than a month ago. The report today is due out at 8 30 a. M. Eastern time it is the last Economic Data point before the Federal Reserve policy meeting next week ahead of that, we look at the bond market. Right now, the benchmark at 4. 628. Highest since november of 2023 the twoyear note at 4. 99. Holding below 5 it hit 5 yesterday. Thats the morning set up. Lets turn our attention to the biggest money movers of the day. Alphabet soaring First Quarter profits jumped by more than half and beating forecasts as it continues the push into a. I. The Company Announcing a 70 billion buyback and the first ever dividend of