Chinese solar and medical supplies. Watch out, nvidia. Arm is looking to throw its hat in the chip making ring. One step forward and one step back of apples union fight. It is monday, may 13th, 2024 you are watching Worldwide Exchange here on cnbc good morning welcome to Worldwide Exchange. Thank you forego being with us this monday morning. Lets kickoff with the dow coming off the best week of the year and looking to extend an eightsession winning streak we could see signs of life dow is higher by nine points the s p 500 is up two points the nasdaq is up 20 points very much a Holding Pattern market right now if you check on the bond market, ahead of the key week with retail sales and cpi due on wednesday and earnings reports, yee yields are lower the tenyear note is 4. 49 the twoyear note is 4. 85 a lot of people are looking at this as a proxy for the Interest Rates. T taking a look at oil prices right now. The u. S. Benchmark wti is still below the 80 a mark thats a. 50 gain ice brent crude is 83. 30. We have a news alert from washington, d. C. The Biden Administration is announcing it is handing out new funding from the chips act our Megan Cassella is joining us with more. He is giving the latest award to Polar Semiconductor it will receive 120 million in grants for the factory in bloomington, minnesota it will create incentives and funding from the company and from private investors the Biden AdministrationOfficials Say the project will create 160 jobs in construction and manufacturing. It will allow the company to double its u. S. Production capacity within two years as it expands to a foundry model for the first time to allow it to serve more customers this is the eighth award doled out under the chips act. It is smaller than the multibillion dollar packages we have seen recently, but this is unique because it boosts the production of chips from cars and Household Appliances and healthcare and weapon systems and in the power grid. 5 of Production Capacity for chips is in the u. S. Currently these are the chips also where shortages were the most acute during the pandemic. Dom, theres 6 billion left to dole out we are expecting to see smaller awar awards moving forward. Dom. Megan, you mentioned the 6 billion on the authorization, if you will what do we know about where that money could be headed . You mentioned smaller awards, but where does it go beyond the names we heard of right now . Some of the companies we heard of may get more money. Nvidia might get a little bit of money. We expect a lot of the companies we have not heard of will get that some of that is going to production, but some will go further upstream and to suppliers to supply those manufacturers doing the grand scale manufacturing and production of the chuips. They need to build out the supply chain and commerce officials are excited about the pipeline they have p coming and dozens eof awards coming Megan Cassella, thank you for that lets get a check of the top stories with Bertha Coombs good morning, bertha good morning, dom apple is closing in on a deal to put openais Artificial Intelligence on the iphone according to multiple reports. The two sides have been fi finalizing terms for i018. This as openai sets to hold a Virtual Event at 1 00 p. M. Today. Likely revealing the new assistant powered by chatgpt unionized workers at the apple store in maryland authorized a strike. According to the workers which represents the workers at the apple store and calling for a strike, the union alleges concerns over worklife balance and disrupting personal lives and wages failing to align with the cost of living apple will engage with the workers in good faith. Now, you may recall, there was a strike vote in new jersey with the store in work hills with the employees voted against the unionization on saturday. Arm holdings is looking to develop the first a. I. Chip was the 2025 launch target according to nikkei asia, arms largest shareholder, softbank, will pay for the Development Costs initially and could decide to spin it off once up and running. The report adds that softbank which just reported the second straight quarterly profit is already in production talks with Taiwan Semiconductor dom. Bertha, thank you. The stocks recent wall could hit a snag as wall street faces litmus tests for the Second Quarter now we turn attention to home depot for the earnings tomorrow and walmart on thursday and comments on Consumer Spending trends we have april Consumer Price index and retail sales out on wednesday providing the fresh read and whether the feds ratecutting forecast is still in tact. Lets discuss how to position your portfolio with raeann this is always a key part of the earnings season. It comes at the end, but it talks about what makes up more than twothirds of the u. S. Economy. How healthy is the u. S. Consumer in your mind right now thanks for having me, dom the u. S. Consumer continues to be strong. We are seeing strong spending trends we are seeing the jobs market which continues to be strong although we are seeing some softness lately. Unemployment is ticking up slightly all in all, the consumer continues to be strong we are starting to see some cracks emerging. If thats the case, is the market in your mind positioned appropriately given what the Economic Outlook is and what could be hypothetically a slowdown in the economy or maybe a weakening of the jobs market were near record highs again, raeann we have seen a pullback again last month and jay powell came out and reassured we werent going to see, most likely, most rate hikes and earnings have come in strong it is really been supportive of that we have seen the multiple compression with the moves it is interesting to see what those companies are reporting on Consumer Spending trends right now, the market is in a good spot. We could see more move up from here, especially if we get, you know, an inline cpi print this week. Home depot and walmart tell us a lot about the sumu. S. Consumer how important are those with the market near record highs i think the market will react to some degree the these are really Large Companies with a lot of exposure home depot will give us insight as to what we are seeing on the housing side than Discretionary Spending which has come down a lot since the pandemic we will see what the improvement trends look like here. Walmart is investing a lot in the business they have a value orientation. It is interesting to see how they report. Not just that, the biggest private employer in america as well raeann, thank you very much. Thanks, dom. More to come here on Worldwide Exchange, including the one word that investors have to know today, but first, the u. S. Is stepping up the china trade war. Reports this morning putting a timeline and price tag on the latest coming out of d. C. Sticking with china and beijing, boosting stimulus efforts as Inflation Fears loom large for the worlds second largest economy. And later on, the latest to push on all things tech and what we have up our sleeve this week. We have a very busy hour when Worldwide Exchange returns after this break a slow network is no network for business. Thats why more choose comcast business. And now, were introducing ultimate speed for business our fastest plans yet. Were up to 12 times faster than verizon, at t, and tmobile. And existing customers could even get up to triple the speeds. At no additional cost. Its ultimate speed for ultimate business. Dont miss out on our fastest speed plans yet switch to comcast business and get started for 49. 99 a month. Plus, ask how to get up to an 800 prepaid card. Call today welcome back to Worldwide Exchange. Futures pointing to a higher open the dow higher by 20 points. Nasdaq up 30 the s p 500 is up by a very marginal 5 points. Lets see how europe is shaping up as its trading day is getting under way with Arabile Gumede with the early action from across the pond arabile, over to you good morning, dom it has been two hours since the markets opened here in europe. You are seeing mixed trading hitting the tape as the days trading kicks off. The inflation figure from the u. S. Will be important and significant for the market trading. We are seeing the ftse 100 managing to be in or around record territory at 8,500 points european banks have managed to move significantly higher in territory they have not seen since august of 2015 a nineyear high for european banks managing uptick. Short sellers are worried it may not last a question on european banking overall. Inflation will be important this week and it dominates this weeks agenda with the numbers from germany and eurozone and the United States as core cpi is anticipated this week. It is forecast to rise by 3. 6 which would be the smallest annual increase then in around three years. On the earnings front, we had softbank report this morning swinging to a profit of 2. 1 billion in the fourth quarter. We will get numbers out of german heavyweights bayer and siemens and chinese heavyweights of alibaba and jd. Com set to release alongside walmart stateside. A lot still happening and we wil will look at those for you Arabile Gumede, thank you we will take a fresh look at the chinese economy. The Third Straight month of gains as Producer Prices remain in deflaktion mode as they work to strengthen the shaky economy. Watching the Chinese Central Bank selling 40 billion of ultra long sovereign bonds in the effort to raise fresh stimulus money a hurdle in the efforts revealed that the Biden Administration will announce tariffs on chinese evs and other key imports starting tomorrow. The total levy on the evs will rise from 27 to more than 100 . For more on all this action is Dewardric Mcneal good morning. It wasnt that long ago where we were talking about the news and the data from china and a lot of folks said china was uninvestable because of the policies and economic downturn if you look at the chinese markets, they bounced back in the last three months although off the low base is the china story finally turning around dom, i dont think we should look past this good news that we have seen come out over the weekend. The consumer in china, the powerful chinese consumer, is showing some life. They need consumer demand to drive the economy. We have seen the exports and what it is doing around the globe with the hits we are taking place in europe and the announcement we know is coming from the baiden administration. I think the news is pretty good. The question is can it be sustained . This is a look back, but looking forward, there are lots of headwinds as you suggest the headwinds have been centered around the consumer, but the Real Estate Market there. A lot of highprofile stress in the commercial and residential in china in the last year or so is an overhang it is an overhang it is stabilizistabilizing, butt necessarily improving. We heard the province lifted bans over real estate. You are starting to see policy shifts that could be beneficial to real estate you are seeing it stabilize. This is still a large overhang for the chinese economy. It is not going to be fixed quickly. Many people were looking for stabilization or floor or stopping of the tripling of bad news in the sector we are seeing it, dom, but i want to be cautious with the property sector. Dewardric, lets get to the tariffs discussion we are expecting large ones to come down in the next 24to48 hours from the Biden Administration targeting ev and solar and energy components. There is hasnt been a lot of difference, but generally with the former Trump Administration and the current Biden Administration, the tilt in trade has been consistent. Can you take us through the next round and what it could mean with the u. S. And the chinese economy . Let me speak about process first, dom, because i think it is important if you listen to the Biden Administration talk about what they are doing and what they are about to do with tariffs and export controls, they have htrie to be targeted versus the sca sca scattershot with the Trump Administration they are looking at the ev sector and green tech more broadly. The at 27. 5 or so, chinese evs were locked out of the u. S. Market long ago. This is more about trying to prevent what they think may be an oncoming threat given how strong chinese evs are becoming globally there is a little bit of politics at play here as well, dom, trying to show the Biden Administration is going to protect u. S. Jobs preemptively, before they become a threat. I would say there are not a lot of nios or xpengs on the road dewardric, thank you thank you, dom. For more on the chinese economy, head to cnbc. Com pro to see the consumer stocks to buy even if the rally in the country fades. Interesting views for subscribers. Ahead on Worldwide Exchange, a closer look at u. S. Consumer spending trends and the issuthe is quarter we will speak with walmarts former ceo bill simon. More on Worldwide Exchange after this oh, not the fries wheres the ball . Anybody see it . Oh wait, there it is back into play and. Aw no, its in the water. Wait a minute. Alligator. Are you kidding me . You got to be kidding me. Rolling towards the cup, and its in the hole what an impossible shot brought to you by comcast business. We see you. Athletes. Investment bankers. Doctors. Business leaders. We see your ambition. Your desire to succeed. Which is why we are investing in your future. Empowering the next generation to reach the csuite and elevating womens golf. Because you may not always see yourself in the world, but we see you. Welcome back to Worldwide Exchange. Lets get to the headlines with Frances Rivera in new york Vladimir Putin has replaced sergei shoigu. He will now head the Defense Ministry instead this is the most significant shakeup of the government since the invasion of ukraine. Now to the criminal hush money trial of donald trump. Michael cohen is expected to take the stand today as he is the key witness for the prosecution. Mr. Trump is accused of falsifying business records. Baltimore will take a step to reopening the port after the bridge disaster in march this animation shows how the officials will use explosives today to destroy key sections of the wreckage to finally get back to shore the governor will hold a press conference to talk about reopening the port dom. Frances, thank you. See you soon. As we head to break, a check on shares of disney right now. The companys film kingdom of the planet of the apes is pulling in 56 million at the box office adding to the overseas haul, they added 129 miiolln. Big deal Worldwide Exchange is back after this glp1 drugs used in weight loss treatments are a global blockbuster, even with unliked and inconvenient injections. More human Study Results for lexarias patented oral Delivery Technology are coming soon. Lexaria bioscience. Whoa, whats that, grandpa . Oral delivery telook at us knuckleheads. And theyre all coming . Those who are still with us, yes. You look good. You as well. One, two three. Grandpa whats this, ellie . Your wings. Light em up gentlemen, its a beautiful. Day to fly. Wooooooo whoa on your wing, grandpa norman, bad news. I never graduated from med school. What . But the good news is. Xfinity mobile just got even better now, you can automatically connect to wifi speeds up to a gig on the go. Plus, buy one unlimited line and get one free for a year. I gotta get this deal. Thats like 20 a month per unlimited line. I dont want to miss that. Thats amazing doc. Mobile savings are calling. Visit xfinitymobile. Com to learn more. Doc . Its 5 28 a. M. Eastern time in the new york area still a lot on Worldwide Exchange coming up. Stocks looking to make gains for the new trading week. Another key test for the markets this week as the rollout of retail earnings for home depot and walmart topping the list of Companies Pulling back the curtain on just how strong the American Consumer is now we will tee you up on what you need to watch. Its also a big week for a. I. With apple, google and microsoft are offering looks into the plans for the Redhot Technology it is monday, may 13th you are watching Worldwide Exchange here on cnbc welcome back to worldwide exc exchange. Im dominic chu in for frank holland. The dow is coming off the best week of the year and looking to extend an eightsession winning streak and a light bid to the markets. The dow up 28 points and s p up 5 and nasdaq up 38 looking at the bigges