it's 5:00 a.m. at cnbc headquarters, 10:00 a.m. in london. i'm frank holland and here are your "five@5." investors get set for today's fed decision, futures once again under some trouble. tech trouble. a blockbuster is doing little to booster and is now 5% below its 52-week high. shares of starbucks tanking on

its global sales. plus, chips take a hit as amd and skyworks fail to impress investors. police being called to the campus once again, arresting dozens of pro-palestinian protesters and clearing occupied academic buildings. it a is wednesday, may 1st, 2024, and you're watching "worldwide exchange" right here on cnbc. ja good morning and welcome to "worldwide exchange." we're coming to you live from cnbc london. thank you for being with us. let's get you ready for the trading day ahead. the s&p is coming off its worst month since september and biggest drop since all the way back in january. take a look at futures in the red. the dow off of its lows, but it looks look it would open just about 30 points lower. all the major averages are down

from their record-highs. it's worse for the russell 2000, which is now more than 19% from its all-time high. april also responsible for wiping out the majority of gains from the first quarter of this year. we're talking 87% for the dow, 39% for the s&p, and 34% from the nasdaq. stocks like home depot, sales force, caterpillar, microsoft, ibm, and boeing accounting for about 1,200 of the dow's 1800 trop. intel down more than 30%. however, as we all know, today is about the federal reserve and its next fed rate decision due at 2:00 p.m. eastern time. the 2-year note yield hovering right now at the heisest since november. it's now above 5%. at 5.03%. we're seeing the benchmark yield at 4.68, some of its highest

levels in the last couple of months as well as we look at the rest of the curve. the 5-year at 4.7. we also have to take a look at two of our biggest earnings movers. of course, that's starbucks and amazon going on both sides of things. the coffee giants sinking. shares down more than 12%. amazon, kind of searching for some direction this morning after topping wall street's estimates, reporting a surge in profits. shares up only about 2.5%. we'll have much more on those stocks coming up. first let's get to gene goldman, chief investment officer for cetera. what it could mean for investors. good morning from london. i want to jump into this. we're seeing pressure ahead of today's fed meeting. what are we expecting specifically until we get to 2:00 p.m. eastern. >> good morning. thanks for having me back on the show.

i do think it's going to be volunteer. we think it's going to be a pretty volatile time, even through 2:00, and the rest of this year. one thing, you talk about the market, we saw the markets were down 4% off their peaks. we do think risks are increasing. the s&p 500500 pe ratio forward earnings is about 20. there's a lot of uncertainty about the next fed action and we're seeing surging bond yields. one question we get is how badly do they get. we think the moving average tends to be sort of that worst-case scenario, but the fed meeting today is the most important thing we're watching. i think, you know, the fed's not going to do anything, we know that. >> let me jump in for a second, gene. what are your expectations for that meeting? what do you expect jay powell to see? we're set for a bit offal setback. you're looking at 4696. does that mean you're expecting

a very hawkish jay powell meeting today? >> if i could talk to jay powell, i would say, please keep a lot of thoughts to yourself because you still have a lot more data coming up. i to think his tone is going to shift a little bit. he ooh e going to say, i lost confidence in where inflation is headed. he's going to suggest rate cuts are still coming later this year. i think he's also going to say the june meeting is much more important. we get two cpi reports and two o'reports before that june meeting. and then one thing we're optimistic -- >> gene, if you think he's going to guide us to cutting rates, what leads to this pullback you're calling for? 4696, that's a deep pullback. by the way, press conferences, they don't work that way. he has to tell us what he's thinking. >> thanks. i was hoping to have a phone line right to jane powell. we think they will cut rates later this year, but i think he'll have some caution.

he'll talk about some bounceback and recent inflation readings, but what we're looking at, we're looking at the big data picture, shelter inflation. yes, it's high. yes, it's high. the labor market is slowing down. very, very slightly. you see job quits are rising. you see the number of jobs available are slowing down. all this together, we think the fed still cuts rates later this year. >> you haven't told us what pulls us pa, to back to what yo talking about. you're smallish on bull caps. believe it or not, small caps are outperforming the broader markets. you believe right now this might be a catalyst for small caps that if we get the idea that you're believing that jay powell is going to signal rate cuts, we're going to see more upside amounts? >> small caps are close to being in the bear market, down 19.4%.

that's a big drop. valuations are extremely cheap. you buy on forward expectations. earnings growth for next year and the year after are looking at 15%, 16% for small caps. we do think small caps are looking pretty attractive from an valuation and fundamental standpoint. >> between goldman, always great to see you. for more head over to c cnbc.cocnbc d cnb cnbc.com/pro for insights. mayday today in europe, so people are off. >> majors are closed ta'u the a public holiday. here in the uk, the ftse 100 is open friday. it's moving slightly higher, at the moment up by about a tenth of a percent. it's worth pointing out that some of the companies we're

monitoring within the ftse this morning includes fw sk. they have actually reported earnings that came in slightly above what analysts were expecting and perhaps even more important for investors is the fact that gsk actually raised their guide answer for the year. but let me take you to the end of the month performance. it's an important moment to really assess what happened throughout april, and you can see that among all of the major places in europe, ftse was the only one that ended by 2.4%. some of the reasons behind that include a weaker sterling, but also momentum when it comes to miners and oil stocks. this was the picture at the end of the month. we had basic resources outperforming therest of the market, up by almost 10%. one of the reasons behind that was the attempt by bhp to buy anglo american. anglo american refused that offer, however, it did shed

light that perhaps some uk stocks are actually cheap and, therefore, there's the potential for some dealmaking. it came in from autos, down by more than 6% for the month. some of the corporate releases, particularly volkswagen didn't help the sector. let's see what else happens for the month of may. we're going to turn our attention now to a bringing news story we brought to you earlier this morning. the protest on columbia university's new york campus. at least 100 people have been arrested at the school after police cleared out protesters from its hamilton hall building and campus last night. demonstrators have barricaded themselves inside the administration building nearly 24 hours earlier to protest the israel/hamas war. the nypd moved in around 9:00 p.m. ohm after the school sent a letter asking for help.

nypd officials describing the scene inside hamilton last night. >> they were barricaded with large conference tables, chairs, soda machines, and a flashbang was used to disstracts individuals so the officers could make entry. >> columbia's campus was cleared of the protesters within three hours. so far no injuries have been reported. the university is asking the nypd to maintain a presence on campus to at least may 17th. that's two days after the scheduled graduation ceremonies. we've got a lot more to come on "worldwide exchange" including one word investors have to know. and our next guest says amazon will take the stock even higher. and the overroasted underearnings wreck and what starbucks has to say. later, getting set for today's powell presser, our

all-star powell pam is here on what to expect. a very busy day ahead when "worldwide exchange" returns. stay with us. [crowd chanting] they ignored your potential, and mocked your ambition. but it's not the critic who counts. with every swing and block, your game plan never changed. ♪♪ some still call it luck. let them. because you know what it's always been. inevitable. ♪♪ ♪♪

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welcome back to "worldwide

exchange." time for your big money mover. what else. amazon. profits more than tripled from a year ago. there have been ongoing cost-cutting initiatives. ceo andy jassy says he expects the momentum to continue. >> we remain very bullish at aws. we're at $100 billion plus at an annualized run rate. yet 85% remains on premises. this is before you calculate generative a.i. there's a very large opportunity in front of us. >> all right. let's discuss this further with brad erickson, internet services analyst. good morning from london. i want to get into this. you maintain your price target of 215. kind of surprised you didn't raise it after that ruark. reheard some of those comments from andy jassy, still implies a

25% upside. why are investors -- stocks are up 2%. why aren't you more impressed by what you heard? >> good morning, frank. i think in some cases, you know, things are playing out kind of exactly as we would have thought and exactly as a lot of the bulls would have thought. and so i think that's maybe the reason the stock's only up a couple percentage points despite the fact it was a very, very good report. on the other hand, this is a stock where people are sort of seeing the case prove out, seeing they can accelerate cloud, mang money on the retail business. that's a stock that can grind higher. in some cases we don't need to see a stock rerate on earnings. steady eddy is kind of a nice pace sometimes, and that's what we think we've got here. >> i want to play a bit of a devil's advocate.

why isn't the stock lower on the guidance? if there's so much demand, why is the guidance mixed going forward? >> i think from the top line perspective, you know, i think the retail business, the ceo talked about how the customer is trading down a little bit. i think there's a little bit of stalled growth there, weaker than people might have thought. but the reality is, again, they're still hitting their operating income estimates on that part of the business, and the cloud business estimates are definitely going up this morning. i don't think of a net basis, you put that cloud piece together, the earnings piece together, that's the formula for a higher stock price here. you know, we have apple left to report, but when it comes to maga cap names, has that changed your mind? do you have a different opinion today from the earnings report? >> not really. amazon has been the name of the

big caps that we cover for this year, and i think coming out of this earnings season, i think we still feel that way. google obviously got a big boost here after their report last week. but i think, you know, there's more yet to come here with amazon where, you know, we're really pointing people toward this is the situation where the operating income and ultimately earnings and free cash flow, this company has the biggest opportunity to see those ramp over the next two or three years, and we think this year is a critical component of that where from a run rate perspective, they did $60 billion in earnings before income tax. we think that number's going to 70, 80, 90, 100 over the next three years. that's pretty powerful. that's why we like it. >> another part of the business that saw a lot of growth was the ad business. can you put that in perspective for us when you talk about

amazon's ad business when it comes to the global 4r57b8dscape right now? how are you doing ads and ad revenues? >> 24%. very good growth. a little below meta, above google, right in line -- almost in line with where pinterest was last night, for example. so growing very strongly. i think what i like on amazon's front is kind of two things. the core ad business is doing incredibly well, but they're just now starting to scratch the surface on some of these ancillary channels. two of them would be the ads they brought to prime video. that's just getting started. that's going to be a big grower over the next few years. billions of dollars type growth. and the second one is amazon is reaching out and working with a bunch of social channels. i mentioned pinterest. they've got deals with meta and snap. they're going to find other corners where they come to

amazon with that untent and using ad dollars from the third party marketplace who are spending on amazon. >> all right, bread erickson from rbc. stock trading at 17% right now. coming up on "worldwide exchange," another week, another 40% pop in terms of shares of trump media. that and your other top corporate stories, they're coming up next. stay with us. ) i have people i can count on. (grandma) and a million stories to share. (vo) the key to being rich is knowing what counts.

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welcome back to "worldwide exchange." it's time for our big "money movers." contessa brewer is back with that. >> shares of starbucks plummeting on an earnings miss. comparable store sales, that's the key metric. it fell by 4%, leading to an 11% drop in china. this is starbucks' sales first short fall by the ceo says the brand is resilient. >> while these results do not reflect our strengths, capabilities, our our opportunities ahead, we confront the challenges with enduring

strength. >> you'll hear more from laxman narasimhan when he joins cnbc later today. super micro revenue grows by 200%. the stock is still up compared to the s&p's 6% gain. and caesars missed earnings expectations largely because of bad luck. the house didn't win at the tables in vegas and hit the line hard. bad weather, adele canceled. ceo tom regooeg called it a repeated butt kicking but consumer spending is healthy. they booked through 98% through june and online sports betting and digital games is up 19% over

last year, and there was some indication because of reduction in capex spending, there could be buybacks in the company's future. >> our contessa brewer. thank you very much. it's also time for a check of some of these top morning stories. silvana henao is with us. good morning to you. >> hey, frank, good morning. a big ipo is set to sale down wall street. viking holdings, shares up. the officering was upsides twice because of strong demand. the cruise operator raising $1.5 billion, making it the second largest ipo this year. shares will trade on the new york stock exchange under the symbol vik and do not miss a first on cnbc interview with vikings chairman on squawk on the squawk today at 10:00 a.m. eastern. meanwhile pot stocks

rocketing higher and some are adding to those gains today. we're seeing the cronos group up. they're looking to change it to a schedule 3 substance. it's been a drug for more than 50 years. the same category as heroin and meth. well it won't make the federal level, it will eliminate the taxes on some cannabis firms. former president trump raising his stake in his company truth social app, to 55%. an s.e.c. filing shows trump secured 36 million shares, increasing his holdings to more than 57% as of march. reports have said trump would receive a stock bonus worth $1.3

billion from the company and that's thanks to the wild move in the shares. the stock has surged more than 50% in the past week, but is still down 25% from its peak at the end of march, frank. >> all right. silvana, thank you very much. great to see you. we'll see you later in the show. coming up, forget the u.s. stocks, why our next guests say it's time to circle the wagons around certain international markets. if you haven't yet, follow us on chor"wca.t mu me orldwide exchange" coming up right after this. my promise to you is simple. as a fiduciary, i promise to put your interests first, always. i promise that our relationship will go well beyond just investment decisions. it's the intersection of your money and your life where we can make the biggest difference. [announcer] charles schwab is proud to support the independent financial advisors who are passionately dedicated to helping people achieve their financial goals.

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it's just before 6:00 a.m. industries breaking five straight weeks of gains notching their worst performances in seven months. futures suggesting much of the same when it comes to may. investors turn their attention to the latest fed rate decisions. the factors cutting the final decision from powell and company skbloo and a roller-coaster ride as shareholders digest the big costs. it's wednesday, may 1, 2024. you're watching "worldwide exchange" right here on cnbc.

♪ welcome back to "worldwide exchange." i'm frank holland coming to you from london. the stocks are once again under pressure once again. the dow hitting its lows. the nasdaq is as well. it looks like the dow would open 90 points lower right now. this floms what was a terrible tuesday and an april to forget. it was the dow's worst monthly performance since september of 2022. it was also the acs&p's and nasdaq's worst. ahead of the open today, all the major averages are down now between 4% and 5.5% from their aulgtime highs. it's important to note it's from their all-time highs. that's your morning setup. a quick look at the markets and the month that was.

today it's about the federal reserve and the rate decision due out at 2:00 p.m. eastern on the back of yesterday's weakest consumer confidence reading in almost two years. also looking at the two-year yield at the highest level above 5%. jay powell is going to hold its press conference. they're pretty much certain the fed will keep its rate policy on hold. not anticipating any hold until at least the september meeting. an then there's anything but a consensus when it comes to the big banks. take a looket the cuts are going to come as soon as july and morgan stanley going to hold at three rate cuts. joining me right now is gina smie lick who will be in the room with jay powell later today and steve odd lan, president and ceo of the confidence board and a cnbc contributor. great to have you both here. gina, i'm going to start with you. you're going to be in that room

today. dovish tone? hawkish tone? but in previous meetings jay powell has taken the time to say if the projections are relevant, not relevant. do you expect the same today? >> i think it's going to be a really interesting meeting bus there because there are a lot of things chair powell could say. it's likely he is going to come out and repeat the message that fed officials have been repeating that they have a lot of attitude to be patient with cutting rates. they tomato have to rush into this. they can take their time. it can be a case we keep the rates higher for longer. there are going to be a lot of questions asked of him. we're going to see fed officials backing away from those. so i think there are a couple of places here where you could see

a slightly more hawkish tone. the question really is how hawkish are we going to go. are we going to move acosta rubicon suggesting that a hike is possible. >> so, jeanna, you're seeing a slightly more hawkish tone. if we hear that more hawkish tone, as a business leader in the business community, what do you expect the reaction to be? >> what we're hearing from our member ceos is everyone is sitting in the neutrals right now. if you think about driving the car, they don't know what's coming. rates are at, what, a 24-year high. it doesn't look like there's going to be a cut any time soon. you know, i expect that chair powell will be very cautious.

this is a political year. you've got a lot of political pressure from both sides of the aisle, not to put them in a bad position. they're under a lot of pressure to make sure they get inflation under control. consumer confidence from the conference board is really not very strong and there are two components to that. one is the current expectations and also future expectations. it with us mostly future expectations over the next six to 12 months that really worried people. so people are concerned about the cost of living, they're concerning about inflation. >> steve, we're seeing it right now. we're showing a chart with the consumer confidence number. lowest read in the last few years. i want to talk about how business leaders are viewing the fed. at the same time, we're seeing rates that are higher but wages that are significantly higher. we got a report yesterday showing 4% year over year growth when it came to wages in q1. the average was just over 2%. so as a business leader, how are

you weighing these twin forces of pressure on wages and also rates? >> you know, it's wages, but it's also -- everything is up through the supply chain. the inflation is coming down in terms of its increase, but it's still -- you know, prices and costs are still going up. you try to push as much through to your consumers and customers as possible, but there's only so much they can take. the worry is margins are going to get compressed. earnings will get compressed, and that's what they're looking at. they're trying to right the ship, but there's only so much cost pressure you can take. the cost pressure is high. they're having debt tranches roll off. you have to finance that as you go. short-term, long-term, it doesn't matter. this is adding to the cost, you know, in your p & l and on your balance sheet as well. you know, business leaders are very cautious here. >> all right, very cautious. jeannaing back over to you.

i want to ask you. what actually matters when it comes to the fed after this meeting? is it labor? is it pce? is it gdp reads? ism? does it actually matter and what should markets be e focused on if we want to try to get some insight into the fed thing? >> it's a great question and one of the interests things fed chair powell can answer today. up to this point the fed has been ignoring a lot of the other economic data outside of inflation and saying our mandate is inflation, inflation is coming down. the fact that it's coming down means we don't need to be particularly worried about the fact that gdp growth looks really strong and rates are higher than we we expected and the economic data in general can coming in a lot steamier than we would have thought. now we're in a very different world where the inflation world seems to be flat lining. there are a couple of reasons

they're looking to discount that. after three straight months of that we're seeing fed officials get worried about that. in this new world, i imagine the fed is going to have to pay more attention to the economic indicators that are forward looking, the job gains, you know, the signs of strength in the economy. and i think that that's the message we could look for from chair powell today. are they apaying attention to growth data in a way they haven't in recent months and if so, which ones matter? we had a strong wage gain number yesterday. we've seen strong job numbers. we'll get the report on friday to see if that's continuing. like how much are those feeding into the fed's reaction function. i don't think we have a clear answer because i think last time since we heard from him, things have changed. >> you know, jeanna, one last question. probably about four fed speakers speaking in the next week after jay powell. should we be listening to these fed speakers, or in your mind should that be the last word until the next fed meeting?

>> i'm interviewing one of the fed officials interviewing in the next couple of days. >> tough spot. >> i think -- i think that -- i think at the end of the day, it is a committee position and in the end it really matters. i do think this is going to be a difficult period where they have to make some pretty contentious choices, in those moments, how much they can get everybody on board is really, really relevant. so the range of opinions starts to matter quite a bit. >> okay. we're going to be listening to those fed speakers and reads your article. great to see you both. have a great day. jay powell press conference, of course, coming up at 2:00 p.m. eastern. coming up on "worldwide exchange," more of your big money moves and a pair of chips player, taking a look at the back of the earnings. "worldwide exchange" has much more coming up.

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[crowd chanting] they ignored your potential, and mocked your ambition. but it's not the critic who counts. with every swing and block, your game plan never changed. ♪♪ some still call it luck. let them. because you know what it's always been. inevitable. ♪♪ ♪♪ welcome back to "worldwide exchange." we're going to toss things back to contessa brewer. >> shares falling after guidance

came in line with estimates. the chipmaker expects $5.7 billion in sales. amd also says it will sell roughly $4 billion in ai chip this year. first quarter earnings and sales slightly topped wall street expectations. you can see in the early trade stock is off by 6.3. rival chipmaker skyworks solution not fairs much better. week q3's guidance fell by more than 9% and this morning's drop adds more pressure to the stock. down almost 12%. and shares of pinterest soaring. the social media company posted revenue growth at 23%. ceo bill ready highlighted the greater returns for advertisers because of pinterest's investments in ai and

shopability. that's something we're hearing cons consistently. those shares up in the early trade almost 18%. that's attention-getting, frank. >> absolutely. contessa, thank you very much. we're going to turn our attention to a another big money mover. that's amazon. almost two-thirds of operating income coming from aws, which saw a revenue right of 17% while ad revenue jumped to nearly $12 billion. on the earnings call, andy jassy said it will lead to a significant increase. let's get more reaction on the numbers. paul moreno is an etf provider with a $2.6 billion family of funds. paul, good morning from london. i'm looking at amazon shares. they've been kind of muted, i guess. they're up 2%, 2.5%. i i'm am surprised they're not

more. >> i think it would be everything you wither talking about in the previous segment. the macro events that are about to happen. people don't want to jump in with what the fed statement might be later today. i think you're seeing pressure on a lot of different companies that have done well. when you look at it overall, amazon had to do three things. they had to grow aws. they did that substantially and beat expectations. that i have to show that ai was hitting the revenue numbers, and they did that. they said it didn't happen in the multi billions. and last but not least, they had to grow their ad revenue. so all in, the report is about a stable business. generally speaking, amazon always tries to guide lower or not get too far out over their skis, and i think investors know that about them. i don't think the guidance is there right now.

i think you're seeing macro factors. >> you seem bullish on the stocks. growth beat estimates at 17%. also the market leader is aws. they're about to lose market share. is that at all a long-term concern despite the incredible profitable. is that a long-term concern? >> it would be a long-term concern if companies like alphabet and microsoft continue to take share from them because, again, when you talk about ai, i think the cloud business is what's going to generate sales in ai for them. it's a big margin business. it's a high percentage of their overall revenue, and it's always a concern. i think they were expecting to grow by 14%. that i grow by 17%. i think the growth is better than expected, and it seems as if they're putting a lot of

capex into ai and the growing. they've generally been able to execute, and we'll have to see how that plays out over the next year and subsequent years. >> okay. incredible growth in the add business as well. nearly $12 billion in revenue. tell me how you view it as an investor, this add business. it's still under double digitings of ad revenue, but it's growing very quickly. >> look at pinterest. a lot of what they do is ad revenue. same thing with meta and alphabet. really, really strong in that segment. so if amazon can continue to grow their ad revenue, which is another streechl of revenue that can ultimately hit to their bottom line, again, it's himars gin, so we really want to see that grow. it looks like they're making some really good progress and beating expectations. >> paul moreno, thank you for your time. coming up on "worldwide exchange," we're not done with amazon just yet.

your morning call sheet. that's coming up next.

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welcome back to mexico. it's time for your morning calls sheet. we start with well wells fargo cutting its price target from 960 down to 890. it sees the selloff as gross margin scrutiny comes into focus. shares down more than 9%. micro devices or amd, bank of america slashing its prices. in addition to earnings, it cites premiums down. we have some price target hikes when it comes to amazon. citi raising its hikes. wells fargo going from 217 to 234 and bmo raising its target from 215 to 220. amazon shares up 2%, 2.5%. coming up, we have the one word every investor needs to know today and kicking off the

new trading month. why our next guest is looking for overseas opportunity. also, we have a programming note. cnbc will bring you berkshire hathaway's annual shareholders meeting live from omaha live at 9:30 a.m. eastern time on cnbc. we'll be back right after this break.

welcome back to "worldwide exchange." it's time for your w.e.x. wrap-up. nypd arrested dozens of anti-palestinian protesters. police will remain on campus until at least may 17th, two days after the graduation. starbucks reported a 4% drop in same-store sales led by a decline in china. stocks open at the lowest level since 2022. microsoft opens a plant in thailand. this comes one day after the cio announced a $1 billion investment in ai at its cloud facilities. pg&e plans to offer a minority stake to kkr. that's part of the utility company's strategy to reduce

electricity rates, protect from wildfires and protect holdings. viking raises $1.5 billion, making it the second largest u.s. ipo this year. bitz coyne sharply bolo, falling $58,000. rate now trading at just about 57, down 4.5%. several economic reports. another busy day of earnings from names like pfizer and qualcomm and the fed announces its late evidence monetary policy decision at 2:00 p.m. eastern and that's followed by jay powell's press conference at 2:30 p.m. we kick off this new trading month. ahead of all that, take a look at futures. the dow looks like it would open 80 points lower. joining me now is courtney garcia, a cnbc contributor.

good morning from london. i want to get into this right away. what do you expect from jay powell. how do you see the market moving or not moving with the 2:30 press conference? >> i think it's widely expected that the fed's going to be basically be on hold. everybody's going to be sitting on pins and needles to see where they are going forward. we have now had four months in a row where inflation is showing inflation at 2.4% to 2.6%, which is clearly higher. that's why everybody is thinking they're not going to cut as soon as people hoped. but it's also not so high they're going to talk about cutting rates. i think you're hearing more and more rumors. we're kind of in this weird in-between where it's not getting down to where we want. i don't think we're talking rate increases. i think the next move is going to be down. later than people hoped. all right. so we're one day away from seeing that year over year in q1

wagers increase by 4%. the average over the ten years before the pandemic. right now your w.e.x. word of the day, you're worried about stagflation. >> i'm not worried about stagflation. that's the hot button on wall street. everybody is talking about that, is that the concern. i don't think it's something to be concerned about. you're going to be hearing people talk about that. the reason we don't think it's a concern, you air continuing to see gdp numbers are strong. they're increasing 3% year over year, which negates the stag part of stagflation. and because we're in this growing economy, the consumer's still strong, wages are growing. people are able to sustain this higher inflation. that's why we can keep going even if rates stay higher for longer. i don't think there's a concern. historically speaking, they're low. they've been able to stay in positive periods of the economy. you're going to hear more and more people talk about worries

of stagflation. i wouldn't worry about that. >> one of your picks today is the defense sector. i was looking at one of the more popular defense etfs. since october 7th, the hamas attack, it is up 25%. are you concerned? a lot of the prices are already gained. we've seen unprecedented attacks, disruptions, and i want to say only 25% higher, but it seems like oil and defense would be considerably higher. >> there are two reasons these are going to price higher. number one is on the highlights. earnings growth is actually looking to be very impressive here. you're talking 24% to 26% earnings growth this year and next. that's what you want to take a look at. a lot of the industries that are high growing are likely going to be decelerating. this is an area where the earnings growth is going to continue to improve, and that's why you want to take a look at

it. >> courtney garcia, we have to leave the conversation there. great to see you as always. futures have been under pressure. the nasdaq under pressure. that does it for "worldwide exchange." "squawk box" starts right now. good morning. bit county holding. gold down more than 2% this week. we'll show you what let's moving as we prepare for the latest fed rate announcement. but amazon shares are higher after a big surge of ad revenue and operating margins. details are straight ahead. plus cannabis stocks are soaring after they took a nationwide step in easing

legalizing marijuana. it's wednesday, may 1st, 2024, and "squawk box" begins right now. good morning, everybody. welcome to "squawk box" right here on cnbc. we are live from the nasdaq market site in time square. i'm becky quick along with joe kernen and andrew ross sorkin. let's take a look at the futures. you're not seeing any rebound this morning. dow futures indicated off another 85 points. the nasdaq down by 120 points. of course, that comes after a selloff for stocks yesterday with the dow down by 75 points or 1.5%. the s&p was also off by 1.5% and the nasdaq down by 2%. then you take a look at treasury yields. this tells you a little bit about the expectations