Plus a blockbuster beat. Its wednesday, may 8th, 2024. Youre watching Worldwide Exchange right here on cnbc good morning welcome to Worldwide Exchange. Were coming to you live from c in cnbc london. Were going to take a look at the futures. We saw the dow arise awe three of the indices have now turned very slightly to the red right now, this as investors continue to wade through the thick of the earnings season with 35 of the s p 500 Companies Already reporting their results. Were taking a look at the bond market as we always do with the 10year yield trading at 4. 5 . Take a look right here the 2year note is at 2. 83. We may be through the busiest stretch of earnings, but theres still a long way to go with reports coming up higher. Jim cramer had Steve Huffman of reddit on last night. Every companies customers are on reddit. By making our ad tools easier to use and making our ads better and better, were recognizing that position. Lyft is posting a second positive quarter it expects higher cash generation for the year due to increase in rides and active riders its expanding its local economist lyft is up just about 6 for much more on the corner, be sure to catch ceo david risher on squawk box later today. Revians revivian reports mixed results. It expects to reach positive inforcement. Well have more when the ceo rj ska ridge is on squawk box later on. Earning season is in full swing. Our silvia amaro joins us with a positive day across europe. Youre seeing european equities mostly in the green i would high light it with the ftse 100 trading at new record highs. And tomorrow were going to hear from the bank of england well see if they give more hints of when they might cut rates. Mostly what were seeing today has to do with the earning season let me just share this number with you to put everything into context. As of yesterday we had heard from 64 of the european stoxx 600 companies and earnings are up 9 on the quarter so so far, a relatively positive earning season in europe we are tracking quite closely Siemens Energy after they raised its full year outlook for power grade equipment in the second quarter. The German EnergyCompany Expects revenues to rise between 10 and 12 up from a previous range of 3 to 7 . The company also said it will replace the ceo of its wind Turbine Division two years after he took the job. We know that part of the business was a big concern for investors. If you look at the shares, theyre moving higher by more than 12 now were also getting a little bit of downward move when it comes to shares of bmw they have reported automotive margins of 8. 8 in the First Quarter. Thats down from 12. 1 from a year ago and missing expectations as heightened costses weigh in its not just a positive tone from european companies. Were getting a little bit of downward movement when it comes to bmw shares, but so far the q1 reporting has been quite positive for the stoxx 600. Sylvia, thank you very much. Turning our attention back over to wall street, investors may be celebrating the surprise surge in quarter profits, but thats coming in with stark contrast including weakened sent meant and inflation. We start with the ceo raising concerns at the Milken Institute conference yesterday. I do think youre seeing weaknesses we anticipated. Jpmorgan was saying the excess sperchding savings would be out, finished in may. Youre seeing starbucks results, mcdonalds warnings, delinquencies of credit cards. I do think 50 , 60 of americans have run out of savings and is going to start pinching their pennies. We have jeremy with wisdomtree do you agree with what Barry Sternlicht has to say . If youre doing a lot of real estate development, the borrowing costs are going up, they bought a lot of buildings where cap rates are much less attractive you understand his pain. I would say you saw some signs in the mcdonalds, starbucks we talked about it could be they raised their prices too much. You havent seen unemployment tick up. We can describe it as goldilocks not too soft, not to hafrmd earnings are doing well. Im not seeing weakness. Youre seeing earnings coming in better than expected. You kind of gave us a pick today. Youre talking about this in your own book. You believe theres an upside when it comes to japan. It does come to valuations, and i would say one of the master Value Investors you heard i was listening to beckys interview of warren this weekend after the Berkshire Hathaway meeting. The s p earnings, thats a 5 earnings yield perhaps 7 , 8 if you add inflation. Youre starting dxj with a 5 carry. Then you have 14 pe. I would bet on it. Youre getting positive corporate governance. Were seeing it this year one other thing thats a concern for Japanese Equities and all global companies, looking at the dollar chart, up 4 . How does it inform your Investment Decisions its one of those things people dont have enough exposure to in portfolios. When you talk starbucks, mcdonalds, theyve exploded to a weak dollar. When the dollar is rising, it hurts their earnings so a lot of people when they go overseas, they add in the extra cur currency i think they need more strong dollar portfolio to head earnings betting its been the exact opposite of bonds where theyre not diversifying stocks. Okay. Give us a quick example. A strong dollar, give an example. Not taking sort of dollar beds. All right Jeremy Swartz from wisdomtree. Weve got to leave the conversation there thank you very much. Weve got a lot more to come to on Worldwide Exchange including one word investors need to know today first were tracking the key stocks and the u. S. Stocks are not falling too far behind, within striking distance of their own fresh highs. The names you should be buying into on the way back up. And a busy day of earnings as you take a look at the number one thing you need to watch r. Fo a very busy day ahead when Worldwide Exchange returns stay with us something amazing is happening here. In a world of data, people are accessing critical information quickly and securely. Thats because cdw architects are building infrastructures with unified data storage from netapp. With the flexibility to run workloads across any environment, providers experience less downtime, giving them more time with patients. Make amazing happen. Netapp and cdw. Welcome back to Worldwide Exchange. That doesnt mean the rivian results have let up. We have numbers from dozens of Companies Including the firm airbnb, arm, and uber. We have more on what we should be expecting from two of those names. This is only the Third Quarter going public yet theyre bullish on arm ahead of earnings out tonight. Arm earned its stripes, providing blueprints for its cpu. But over the past six years the chip designer has expanded the Company Makes money from royalties and licenses shares have dropped double digits in the last month but are still outperforming the stocks thats on a yeartodate basis, and its on the notion that arm will benefit from this giant ai push, especially as compete increases. So look out for any new comments from arm about apple using this new ai architecture. The second thing is the smartphone recovery should be the driver given that arm gets about 25 of its revenues. However, china does remain a risk last quarter arm contributed a total of revenues and they could have an impact on outseitzed results. Oober shares have been pretty much flat over the last three months after a banner 2023 investors are looking for fresh catalysts, but the big milestones, consistent profitability, cash flow, inclusion, the stock went up on all of those things. That could be giving the street a reason to pull back. Theres tesla and robo and then theres the regulatory battles we did get smatter ridesharing rival lyft results last night. They beak expectations in terms of the First Quarter finance chicagos but guidance for the First Quarter, likely raising the bar for uber i spoke to david risher. He says premium modes are growing faster than the average and so called party lines are up food delivery pacific northwested deeper than expected lo losses the competition may be seen as tougher. You have uber, door daesh, amazon, and instacart trying to protect shares back over to you. Uber could add to what weve been hearing in recent weeks airlines and hotels expect strong bookings through the summer months, but some like delta and 345ir yacht are counting on International Travel disney was saying yesterday its seen some evidence of moderate posts. Well talk more about this with clint henderson, managing director hes not the managing director, but he could be. Ill take it. Im all about promotions. People still have pandemic savings years after the pandemic i also heard in recent months talk about revenge travel. Is that still a thing . What is the data showing us about travel demand and desire its incredible demand has stayed pretty steady. Were not seeing the surge we saw right out of covid weve seen the demand shift from places like hawaii and mexico to places like japan and europe so youre still seeing really heavy demand for those parts of the world, and i dont really see a sign of a lot of Leisure Travel ending. I think some of the destinations that got the most traveled theme parks, nation and parks, hawaii, they sort of got overdone, and youre seeing pullback there in general, Leisure Travel is going crazy and bitz travel is coming back. Any leure demand travel fall jaut is being compensated. So its all green lights pretty much aside from a few weaker players. Okay. So youre hitting on some of the travel were seeing. Right now the Airline Flights are higher year over year. They were supposed to hit a peak at 315 right now theyre at 305 is that typical . There should be an increase. Prices have held city from last year and theyre actually lower than they were right out of the pandemic, so youre seeing some return to normalcy in pricing for Airline Tickets that said its really pricey to go to europe and to asia, so there are spots where its more expensive. In general its back to prepandemic levels. Some of the most sought after destinations i took a trip a few years ago. It was amazing managing director, promotion received. For more on uber and the state of travel, be sure to catch the interview with its ceo at 7 10 cet later today. Coming up, crowdstrike and z scaler, what theyre saying. Coming up next ry swing and bloc, your game plan never changed. Some still call it luck. Let them. Because you know what its always been. Inevitable. How am i going to find a doctor when im hallucinating . What about zocdoc . So many options. Yeah, and dr. Xichun even takes your sketchy insurance. Xichun, xichun, xichun youve got more options than you know. Book now. Welcome back to Worldwide Exchange. Day two of the Cybersecurity Conference in San Francisco yesterday where the governor announced a new plan and the forecast that shows there will be 10 trillion in cyber criminal activity ha next year Many Companies will sign the pledge is voluntary and focused on seven goals in areas of cyber protection. Which including multimultileve authentication. The system that directs our daily lives are underpinned. Frankly that technology was built in a way that did not prioritize security. It was built in a way that prioritized speed to market and adding on cool features, and security was a bolton. I spoke with others about the design pledge and the context of an aipowered landscape. Jay chaudhry said it will change things our enterprises, our Companies Need to step up, really embrace some of these things early on. It may seem like its slowing things down, but of your yall it will benefit us we all know breaches are happening too often, and unless the center blazes braces it. We weve seen the stein taking off quite significantly. Another hop topic, platformization. It creates a completely cohesive system c crowdstrike was founded under a platform it will address the worker shortage it really comes down to threat and to cost management. Its a hot topic at rsa everyones running around saying theyve got a platform, but i think the true definition is the ability to solve many use cases and outcomes for customers with one single platform and data in one spot and, of course, the ai data on top of it. By leveraging, we can take a tier 1 analyst or basic analyst and make them a super nachlt we think this is a special approach for companies. I was told yesterday there are not enough stock 234589s. For more on that interview, go to cnbc. Com. As we head to break welcomere watching shares take off at the open. Social Media Companies are coming in with First Quarter results that surpassedve its own targets. Coming up 57 . Loss per share nroarwer than expected at 14 per quarter were back right after this. Did you ever worry we wouldnt get to enjoy this . [jeff laughs maniacally] inner monologue seriously, look at these guys. They are playing great. Meanwhile, im on the green and all i can think about is all the green im spending on 3 kids in college. Not to mention the kitchen remodel, and wed just remodel the bathrooms last month. With empower, i get all of my financial questions answered. So i dont have to worry. So youre like a guru now . Oh here it comes join 18 million americans and take control of your financial future with a real time dashboard and real live conversations. Empower. Whats next. Its about 5 00 a. M. Theres still a lot more ahead on Worldwide Exchange. Heres whats still on deck. The dow launching its longest multiday win streak in another five months. Despite the markets slog back, growing questions emerging on whether we may be rangebound in the near term. Our awl star panel lays out the stocks you need if we end up in a holding pattern. Were looking oversees for opportunities as a number of the european markets hit recordhighs its wednesday, may 8th, 2024. Youre watching Worldwide Exchange right here on cnbc all right. Welcome back to Worldwide Exchange. Im Frank Holland coming to you from cnbc london we take a look at stock futures. After kind of a mixed session for stocks yesterday, we saw the dow ruse taking a look right now, its kind of a mixed picture. The dow has swung into green, looking like it would open up ten points higher, however, the others are fractionally lower. Some companies are already reporting. According to lseg earnings are coming up. Were checking the bond marked with the 10year yield still below 4. 5 , the 2year below 5. 4 the 2year at 2. 84 . Now were going to turn it back over to stocks the nasdaq is the only one who notched gains. The indices are not far from their records between 1. 25 to 2. 5 highs we look at what stocks you should be riding along the way for more, lets bring in jeff kill borg. Both of you aring looking at some of the volatility youre seeing in the markets. Youre forecasting a pullback. Jeff, im going to start off with you what are the expectations. Do you think youll get a pullback and if they are, how do you play your investments from there . Im not going to call it a fullback i call it a false sense of security whats fascinating to see, today is going to set the tone rates at 4. 5 . Thats still quite elevated. So i think you have to understand some of the understand appreciated tech. Im thinking of apple, ibm, intel, they have been for gotten about since this parabolic move. Its going to be time to lock at the underappreciated tech ranges i think its here, frank, until the election in november. Really, okay. Im going to come over to you, todd i was thinking about you when i was talking to jeff first. Youre saying we could see the s p pull back. He doesnt want to call it a pullback, but were both on the same page were both two goodlooking guys, frank. Al t although a few inches shr than mr. Kilburg. What should investors do then im still approaching this market with the same bit of lets call it openmindedness. I just find this technical level of 4800 to i think its to 21 in the s p in 2022 and the nasdaq near the equivalent. How do we not go back and retest we have a lot of indecision in the market you have sector rotation moving out of growth names like Consumer Discretionary tech and communications and moving into more value, which is no caughtedly due to higher inflation, rates that are sticky that 10year yield up. I like it in the near term that the 10year yield has backed off. Im concerned, guys, if that continues to break down, it sends the market the wrong message in that perhaps that value rotation is problematic. It further inverts the yield curve. It drops the yield curve so near term im a little concerned. Im looking at some longer term, more like reasonably valued tech stocks but very much aware of the rotation and the value. So we actually got jeffs understood appreciated tech. You have your own picks. You call them lost sem stocks. Klec, applied materials, broadcom, texas instruments. You call them loss theyve had issues in the Earnings Report. Why do you think theyre good buys right now sorry was that for jeff or todd . Todd, im talking to you. Youre the one with the chip stocks. I was going to say, jeff, he stole my stocks. Were seeing sort of the more reasonably valued semiconductors appear those guys are acting better in here where if you look at again the rotation, if you look at how the Technology Sectors made