the way i approach work post fatherhood, has really trying to understand the generation that we're building devices for. here in the comcast family, we're building an integrated in-home wifi solution for millions of families like my own. in the average household, there are dozens of connected devices. connectivity is a big part of my boys' lives. it brings people together in meaningful ways. >> back in the black. >> a historic. >> comeback on wall street stocks turning positive. >> on the year. >> and. >> this morning struggling to hold on to those gains. president trump. continues his middle east tour, announcing billions of dollars in deals involving nvidia, uber, cisco and more. we're going. >> to take a look at. >> the next gulf nation that the president's visiting, and the companies that could benefit from the president's. >> dealmaking diplomacy. >> it is wednesday, may the 14th, 2025. this is worldwide exchange. >> on cnbc and. streaming on

cnbc plus. >> good morning. >> thanks so much for being here. >> with us. i am frank holland. >> thank you for joining us. >> to get you. >> ready for the trading day ahead. we begin with the u.s. markets, the s&p and the nasdaq coming off winning sessions following the latest cpi. read showing the latest. >> read on. >> inflation since. >> all the way. >> back in 2021. >> we're talking about the headline read this morning. we want to take. a look. >> at the futures. >> you're seeing. >> a bit of a. mixed picture right now. the nasdaq. >> fractionally lower. >> the s&p. >> essentially flat fractionally lower. the dow moving just a bit higher. >> kind of a. >> rebound here. >> up just. >> about 27 points right now. we're going to take a look at the s&p 500 premarket gainers. >> take a look at some. >> of. >> those names. >> you're seeing. >> supermicro right here at the top of the list. those shares. >> up 9%. they moved double digits higher yesterday off of. >> a. >> very bullish. >> note. >> from raymond. >> james unitedhealth. >> a bit of a bounce back. the company really took a nosedive. >> yesterday after it. >> announced that its ceo was stepping down. >> also pulling its full year guidance. >> those shares up about. >> three and a.

>> quarter of a. >> percent. >> first energy, molina healthcare and tesla. tesla rounding out the best. >> performers on the s&p in the premarket, tesla shares up 2%. then we have the other side of the coin, the laggards taking a look. >> at those. >> wc energy pulling. back about 2.5%. >> otis worldwide. >> akam equity. >> residential and. >> cboe rounding out. your worst. >> performers on the. s&p this morning. we're also tracking a. re acceleration of the tech trade with nvidia and amd reaching deals. >> to sell. advanced ai chips. >> to saudi company humane. so this is all part of the president announcing what the white house is. >> calling a. >> $600 billion saudi. investment in. >> the u.s, the. >> president leading. >> a. >> trip to the kingdom. >> with a lot. >> of. >> high profile. >> ceos, including. >> we're showing you some of them right here. the leaders of ibm, palantir, blackstone and blackrock. >> we showed. you some. >> of the handshaking and some of the pomp and circumstance. >> right. >> here on worldwide. exchange yesterday morning. so back to the stock action. nvidia had the biggest positive impact. >> on the s&p. >> 500 yesterday. >> amd finished. >> 4% higher. taking a look at some of those. >> names this morning. nvidia. >> shares. >> up over. >> 1.5%. >> amd up over 1%.

>> we already showed you tesla. >> up just about 2%. >> amazon actually pulling back a bit, pulling back about. >> a third. >> of a percent. >> palantir essentially flat. >> in the pre-market. all right. turning back to a. >> more us focused trade. >> we're talking. >> transports and small caps. >> both of them. >> moving higher. in four. out of. >> the. >> last five days. citi analyst. >> ari rosa. >> coming. >> up with a lot more on the transports. you're seeing the moves right here. the russell we're. >> looking at. >> the etf that. tracks the russell the iwm up. >> about 3.5% week to date. but look at this. >> the transports. up over 7.5%. >> week to date. >> again ari rosa. >> from citi. >> to talk. >> about the. >> transport trade coming up in just a few minutes. take a look at currency this morning. we saw the dollar pull. >> back. a bit. >> yesterday looking at the dollar this morning, pulling back once again. >> pulling back about a half. >> a percent right now. >> week to date. essentially flat. >> just fractionally higher for the greenback. and it. >> was a huge. >> day for oil yesterday. >> wti and brant crude both rallying more than 2.5%. taking a look at the move. >> today wti. >> pulling back just about a. >> half a percent. >> similar story for brant crude. >> but look. >> at this right here. huge move to the upside for.

>> oil week to. >> date oil. >> up. >> just about 4%. and we've got to take a look at the treasury. >> market yields. >> moving higher despite that quarter. than expected inflation. >> read the. >> two year. it actually crossed the 4% mark. >> when it came to yield. >> you see it's pretty much. >> at that level right now. >> the benchmark coming in at 4.46. >> a lot of talk about. >> what it means. >> when the ten year. gets to 4.5%. >> we're going to talk to some. >> of our market guests about that. okay. that is your setup. let's now see how. europe is shaping up as its trading day gets underway. julianna tatelbaum she's live in london with a look at the early action. julianna. >> good morning. >> frank. good morning. well, here in europe we've been pretty rangebound. after yesterday, we saw the main benchmark, the stoxx 600, move higher by a modest degree. but we did see a pullback in volatility. the euro stoxx volatility index hitting its lowest point in 11 weeks in yesterday's trade. there you can see you've got 4100. the xetra dax the cac40 trading lower this morning. but we do have a little bit of green on the board with ftse up about four basis points. from a sector perspective. here's what's out in front

leading the charge in europe. we are looking at some gains in the telcos insurance, utilities and real estate sectors. on the downside we are seeing some red on the board, in particular in household goods. we've got luxury stocks coming under pressure, with the exception of burberry, where shares have traded up close to 10% higher this morning after delivering a better than expected update to the market. but other luxury names selling off. we are also seeing some weakness in autos as well as chemicals and travel and leisure. frank. >> all right. juliana, thank you very much. our julianna. >> tatelbaum live in london. all right. we're gonna stick. >> with the international action. >> president trump continues his middle east tour today. >> after unveiling what the white house describes. >> as a $600. >> billion. >> deal with saudi arabia. >> a number of deals to be more accurate. >> this includes. >> nvidia and. >> amd deals for new cutting edge ai. >> chips to. >> tech firm saudi tech firm. >> humane. >> amazon, cisco and us tech venture global ai. also announcing new collabs with humane plus, a $142 billion defense sales. >> deal for.

>> state of the art. war fighting. >> equipment from u.s. >> defense firms. >> today, the. >> president has the neighboring qatar. our dan murphy. >> is live in doha. >> with much more. dan good. >> morning frank. good morning to you. well, the president is due to arrive here in doha in the next 30 minutes or so as this whirlwind tour of the gulf continues, it's fair to say that the administration is already claiming victory, at least from an optics perspective, after the president's touchdown in riyadh, as you know, he was greeted personally on the ground by saudi arabia's crown prince mohammed bin salman. certainly a big break from diplomacy there, as we saw the saudi leader emerging to firmly shake president trump's hand. certainly a real break as well, from the optics of the previous administration, where we saw that awkward fist bump taking place in riyadh. so clearly an optics win here, but also perhaps a major reset of america's role and presence in the gulf moving forward. frank, you mentioned it as well. $600 billion worth of investment

deals already being signed, including that $142 billion defense pact as well. and on top of that, all of the wall street heavyweights on the ground essentially working to build out the investment corridor that we continue to see emerging between the us and saudi arabia and the us and the gulf, with significant deals being signed among the eye names in infrastructure, in energy, just to name a few. so now the focus shifts over to qatar. the president due to arrive here shortly. as i mentioned, he's going to be greeted by qatar's emir and take part in a bilateral meeting that we understand is also likely to focus on the president's mission here, which appears to be more so focused on deal flow rather than diplomacy. at least for now. we're told to look out for a potential defense deal worth up to $2 billion. we're also looking out for a potential transaction here between the qataris and boeing on aircraft orders. and altogether, reports

also suggest that we might even see deal flow worth between 2 and $300 billion on the ground here as well. on the diplomatic front, of course, qatar also plays a really important role in the region, in areas like the mediation in gaza. and of course, it is watching closely to see what happens on the iran nuclear file as well. so there is an opportunity for the president to also advance the conversation in that area. but as i mentioned, the focus at the moment seems to be on where the money is moving. frank. yeah. dan. >> i want to lean. >> in on. >> more about where the. >> money is actually moving. >> so we know the saudis, they were. really focused on. >> tech and. >> ai and also defense. do we have a more of a sense you mentioned some of the areas, but what's the uae. potentially interested in investing in? >> maybe. >> is it possibly some areas outside of tech. >> and defense? and what about qatar? >> indeed. so in qatar in particular, i have just wrapped up a conversation with qatar's energy minister. what we see is significant energy links between these two countries. the us, of

course, a major lng supplier to the worlds, qatar also building out its lng capability. and we're likely to see that conversation continue, perhaps even deals being announced in the energy space as the president moves over to the uae and touches down in abu dhabi, the focus is also going to be on artificial intelligence. you mentioned it before, that really significant deal that we saw with jensen huang in riyadh and the allowing of the 18,000 blackwell chips into the kingdom, essentially paving the way for this part of the world to have access to those high performance us ai chips, something that the biden administration pushed back on because of concerns about this region becoming a back door to china. it seems as if the president is now allowing that to happen, essentially also opening up the door for further investments in ai as well. frank. >> yeah, i think the stop in qatar will be especially interesting, especially after qatar hosted the world cup. definitely trying to. >> push itself more on the world

stage. so we'll see how that plays out potentially when it comes to deals with us companies. dan murphy live in doha. great to see you. thank you very much. all right. >> the big tech rally in the stockton. >> expected cpi read. >> yesterday, helping to push the. >> s&p 500 back into positive territory for the year. the index is now up 18% since the intraday lows back on april the 8th. deutsche bank says the last time the s&p the last time it saw that much in over a month was all the way back in april of 2020, when the markets were recovering from the initial covid lows. remember those days? let's bring in lizzie evans, managing partner at evans may wealth. lizzie, good morning. good to see you. >> good morning frank. >> all right. >> so we're just talking about that huge move from the lows. back in april. i want to ask you, when you're talking to clients, i imagine you're getting quite a few calls. is this a sustainable trend, or is this a tradable bounce? what are you telling your clients? >> well, frank, your earlier point comparing this market to 2020. >> i think is. >> very apropos. >> whether you call it a. >> v shaped. >> recovery, really for our

clients. >> retail clients. >> in general, i think have. >> participated in. >> this rally. >> institutional investors, not so much. but i do. >> believe that given. >> the news that we. saw come out on monday related to china, that. >> we could. see the equity. >> markets continue. >> to rally. >> into the summer. and i do think. >> that the s&p. >> 500 will. >> will test. its all time high. >> of 6147. >> so i think we end the year higher from where. >> we are today. >> but you. >> know, over the. medium term. >> there's still. downside risk because we don't we. >> have not yet seen the damage. >> to the economy. related to tariffs. >> and the uncertainty that's played out. >> so i think over the. >> medium term. >> investors still. >> need. >> to look. >> at the. >> potential for revisions downward. >> on earnings per. >> share growth. >> and on gdp. but in the short. >> term, i think there's more upside. and i still believe we're in a secular bull market. >> yeah. to your. >> point, that gdp report i believe. >> it comes up on may the 29th. a lot of people watching that looking at the s&p, just about 4% away from its all time high. so one area i know that. you're

looking at. >> are the chips. >> and we're going to show. >> just the move when it comes to chip a pretty dramatic move from the april lows up about 45% or so since then. is that a sustainable trend in your mind? do you think the chips not only sustain that growth. >> but really continue. >> to lead the markets? >> it's amazing. >> really, frank. >> when you see the bounce. >> we've had since. >> april, i do think that. >> semis will continue to. >> lead the market higher. and i. think that. >> that rally. >> is sustainable. >> particularly the. note you. >> just read. >> as it relates to saudi. >> arabia, that is a. >> big deal for nvidia, amd and really a shift in washington policy. >> to allow these companies. >> now, previously, they had to have special u.s. licenses to sell to the. >> middle east. >> so i. >> believe that the administration. will continue to use companies like nvidia. >> and semis as a negotiating. >> a bargaining chip, because all. of these countries. >> want. access and semis. >> again, if you're in a. >> secular bull market, the leadership has to. remain intact, intact. so i believe. that tech will continue. >> to. >> rally in semis.

>> still have. >> more room to go. >> all right. >> so how are you viewing the market more broadly. also the idea of fed cuts the cpi report. did it change your view when it comes to fed cuts or not. after we got that temporary tariff. >> reduction between. >> the us and china. >> when you look at the. >> fed funds rate, you look. >> at. >> the. >> cme fedwatch tool. >> the odds of that july cut that so many people were banking on, it was reduced pretty significantly. i'm looking right now a week ago. >> was. >> at 57%. now it's at about 34%. does the fed matter in this market right now? are you concerned about the outlook when it comes to fed cuts at all? >> i'm not concerned. >> about. >> the outlook. i think that the news that came out on monday. >> allows the fed. >> to take a. >> breath and really to continue. >> their wait and. >> see pattern. >> so now the market is. >> pricing in. >> the first rate. >> cut in september at 25 basis points. and two rate cuts this year. >> again, i think that we. >> know that the fed has been. >> backward looking. >> and they're. continuing to monitor data. >> so i. >> don't think that, you know, i think that the fact.

>> that this. >> is being. >> pushed back. because recession fears have. >> declined and investor sentiment is better is a very. >> positive thing. >> lizzie evans, great to see you as always. thank you very much. >> thank you frank. >> a lot more to come here on worldwide exchange, including the one word that investors have to hear today. >> and. >> the stock pick that every investor needs to know. but first, tracking the transport stocks surge. >> on the back. >> of the china us temporary. >> tariff reduction. >> and the names. >> that could. >> benefit the most. >> plus first. >> it was saudi arabia, now another country reportedly on deck for a fresh batch. >> of ai chips. >> and later. >> oversold in china. the names my next. >> guest says. >> got thrown. >> out with the. >> bathwater and. >> the us-china trade war. >> we have a very. >> busy hour. >> busy hour. >> still after last month's massive solar flare added a 25th hour to the day, businesses are wondering "what should we do with it?" i'm thinking company wide power nap. [ employees snoring ] anything can change the world of work. from hr to payroll, adp designs for the next anything. - double check that. anything can change eh, pretty good!k. (whistles) yeek. not cryin', are ya?

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>> bloomerang dark. >> purple reblooming. >> lilac from. >> proven winners. >> color choice shrubs has been trialed and tested for your success, so you get flowers that bloom again and again and again. available at garden centers. welcome back to worldwide exchange. turning to transport. >> seeing a huge jump on the back of this week's tariff deal. up more than 7% since the announcement. look at that chart right here. actually up about 9% week to date. right now we're checking a number of key players in the space since that deal was announced. take a look. you're seeing those shares up double digits hapag-lloyd. we just heard from the ceo of hapag-lloyd. actually our european counterparts here from we're going to hear from him a bit on this show in a second. those shares up over 22%, fedex shares up over 6.5%. ups up 4%. c.h. robinson, biggest freight mover from asia to the us, up over 8%. for much more, let's bring in ari rosa, senior analyst at citi. ari, good morning. good to see you. >> hey, how. >> are you, frank? good to see you. >> all right. so, ari, every transport ceo i talked to, they

say they're expecting at least a short term surge of goods coming into the us. specifically containers filled with consumer goods while there's this tariff pause going on. what does that mean for the stocks? is that already priced in with those moves we saw, or is there more upside? >> no. to the contrary, i actually. think transports. >> have lagged year to date. >> and so you're 100% right. you know. we've had this sharp bounce. >> back in the last couple of days. >> but i think there's still. >> more. >> room to run. >> i mean. >> what you've. >> seen is everybody got very nervous. >> for very understandable. >> reasons, just kind of a. >> collapse of global trade. >> and in. >> fact, you actually if you see. >> some of. >> the data. >> you can see that there was that sharp falloff in in. april and. >> early may. >> and now now we're looking at this kind of snapback effect. and so. >> i heard. >> on the last segment you mentioned kind of analogy to covid. that's kind of what. >> we're looking at here in a very mini way. >> where you. >> had. >> this sharp drop. off and then. >> this. >> this catch up that's now. >> set to occur. >> and i think that's. >> going. >> to be very good for transports. and in fact,

actually, you know, as we look at transport stocks, we think they have kind of this leveraged play on on the broader economy. and so i think it's. >> it sets. >> up very. >> well for. >> transports to kind. >> of catch up here to. >> the broader market. >> all right. so ari, that's your broader view. you can't really invest in the dow transports. the iea is one popular way a lot of people invest in transports. like i mentioned, our european colleagues, they actually heard from the ceo of hapag-lloyd this morning. i want to play a sound bite and also ask you a question after we listen. >> there's a fairly sizable backlog of cargo in china at the moment that needs to be shipped. so of course, as tariffs are down now significantly, i think shippers will increasingly try to ship that. so i would expect those volumes to remain elevated over the upcoming 6090 days. what's going to happen after that? i think that's still too early to tell. depends a bit on how those negotiations will evolve and what kind of signals people will get. >> all right, so. >> more confirmation about that pent up demand. but ari, i want to ask you a more granular question. what company specifically here in the us are going to benefit from that?

yesterday we saw j.b. hunt, one of the biggest container movers from the west coast ports. those shares were up big in the pre-market. in your mind, as we see all these containers come in, what stocks benefit the most? >> so everyone's going to benefit kind of across the board. >> right. because anytime. >> you get this snapback. >> effect. >> you get. >> this. >> rush of rush of demand for. >> freight capacity. >> and that's going to be. >> good for. >> rates across the board. >> and we've. >> really been in this prolonged. >> freight recession. >> for the last two and a. >> half years. >> this looks. >> like. >> it could. >> be kind of the solution. >> to some of these. >> problems that have existed now. >> for, for some time and. >> have been an overhang. >> to the broader industry. but when you think. specifically about the companies that that benefit the most, typically air freight carriers, you're going to. >> see some. >> catch up demand there. and some of that is just because retailers. >> who are looking. >> to. >> replenish inventories might not have the time to. >> wait for. >> a. >> ship to cross. >> the ocean, and instead, they might shift. >> some of that merchandise to airfreight. >> so ups. >> and fedex. >> which i heard. >> you mentioned earlier. >> as being. >> some of the big gainers. >> in the last couple of days. >> i think.

>> those are. very well positioned. >> and frankly, they're pretty cheap too. and so. >> from a. >> valuation basis, we like both fedex and ups right now. >> all right. >> we have some other news yesterday about the de minimis provision. when it came to tariffs. it was lowered. the tariff level. >> was lowered. >> but that $100 fee still is in place. who benefits from that the most obviously you know ups and fedex they move some of those products as well. but in general does it have a broader effect when it comes to the transports, or is that just a small piece of the puzzle? >> look, the reality is. >> it. >> it is a. >> relatively small. >> piece. >> of the puzzle. and what you hear when you talk to ups. >> and fedex. >> is, is that kind of china. >> to us. >> trade lane, which is. very profitable for them. it's still. >> kind of only low. >> to mid single digits. >> as a percent of revenue. >> so it's not really going to move the needle. >> in a dramatic way. >> but absolutely. >> it definitely will. on the margins benefit. >> ups and fedex. >> what you've seen. >> from both of. >> those companies. >> actually. >> and you've seen it from. >> the us postal service. >> as well, is this effort to really push pricing. >> and i think. >> that is that's really the story. >> that's being. >> lost amidst all the noise, which is it's not just a volume.

>> story. >> it's also a pricing story. >> and that, of course. >> is going to translate. >> into a margin story. >> and i think. >> that's the thing that people are really. >> underappreciating when it comes to those names. >> yeah. >> i think that's what had a lot of people kind of scratching their head when it came to that fedex and amazon announcement that fedex moved some of that amazon freight, which is generally seen as kind of a weak pricing, low margin freight. but we got to leave the conversation there. all right, rosa, great to see you. thank you very much. >> thank you frank. >> we're going to hear a lot more about the trade landscape post tariff deal. when squawk box speaks with maersk north american president. that's coming up at 8:30 a.m. eastern time on cnbc and on cnbc plus. still on deck, soaring eagle. >> well. >> not so much. shares of american eagle you can see right here. they are sinking ahead of the open down more than 13%. we will have the details when will have the details when worldwide every shot is an opportunity. and success requires drive, resilience, - wow. - get it there. and sometimes luck. but what if luck had less to do with it? what if we had the tools to help us practice smarter,

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kootenay silver, boasts one of the largest resources owned by a junior company. with a new high grade discovery in mexico. the potential for growth and leverage to silver is significant. kootenay silver. >> good morning. >> hey, frank. >> good wednesday morning to you. we start with. >> the financial times reporting. that tesla has formed. >> a new special committee to review elon. musk's pay package. the ftc says the two member committee's review could result in a new stock options package, or other. >> ways to. >> compensate musk for his past work. the reported move comes as musk is currently fighting to restore his $56 billion pay plan from tesla. after a court ruled it was unfair to shareholders. >> looking at. >> shares of tesla right now. >> up close. >> to 2% in the premarket. etoro

is set to begin trading on the nasdaq today after pricing its ipo. the stock brokerage. platform pricing shares at $52. >> each above its expected range. now, the company. >> had filed an ipo in. >> march. >> but delayed its. plans as tariff. uncertainty rattled. >> markets. >> and shares of american eagle are plunging ahead of the open. right now, down over 13% close. >> more than. >> 13.5% in the premarket, and this after withdrawing full year guidance. the retailer also revealing it's writing off $75 million in inventory. >> american eagle says. >> it's making the moves as it deals with slow sales, steep discounting and. an uncertain economy. frank. >> look at that chart. so shares pulling back more than 13%. yeah. savannah, thank you very much. we'll see you a bit later in the show. all right. as we head to break we're watching shares unitedhealth. after losing nearly a quarter of its value yesterday. you can see a bit of a bounce back this morning. shares up about 3%. the

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stay ahead of the market. squawk box today, 6 a.m. eastern and streaming on cnbc plus. >> competition is a huge part of ambition. i've raced cars for about 30 years. car racing is so competitive, kind of like the financial markets. cnbc's you think those phone guys will ever figure out how to keep 5g home internet from slowing down during peak hours? their customers have to share a wireless signal with everyone in their area. oooh. -you know, it's kinda like when you bring a really big cake for your birthday, and then there is only a piece left for the birthday girl.

well, wish her a happy birthday. happy birthday... -it's... ...to her. -no, it's me. have your cake and eat it, too. don't settle for t-mobile or verizon 5g home internet. get super fast xfinity internet you don't have to share. forty's going to be my year. doozy. available at garden centers. >> this is very much a trust but verify situation. we retain the full 20% tariffs related to. fentanyl with respect to china as part of this agreement over the weekend. and so, you know, we want to see real results. if we don't see results then we have our our enforcement tools that are still in place. but if we do see results, then, you know, the president will consider whether we should have a different approach. >> so that was us. >> trade rep. >> jamison grier on. >> squawk box yesterday, talking. >> about the white house approach to china after. striking that tariff deal, chinese. >> markets getting. >> a boost on the back of that deal, though not quite as big as

we've seen here in the us. >> welcome back. >> to worldwide exchange i'm frank colin. coming up this half an hour. we're going to dig into whether the narrative around chinese stocks has shifted after that agreement. and if investors if they should jump in or if they should stay cautious. but first we're going to begin with the u.s. markets. >> the s&p and the nasdaq coming off winning sessions. >> following the. latest headline cpi or excuse me, the lowest headline cpi read since 2021. take a look at the action the premarket this morning. seeing a bit of a mixed picture. the dow actually off of its highs of earlier looking like it would open up about ten points higher. very fractional moves to the upside. the s&p and the nasdaq very fractional moves to the downside right now. want to take a look at the nasdaq 100 leaders in the premarket. take a look at some of these names pdt holdings speaking of chinese equities. those shares up just about 2% nvidia after striking a deal in saudi arabia. those shares up about one and three quarters of 1%. same story for amd tesla also striking a deal or i should say elon musk striking a deal for his starlink over in saudi arabia. and down here. marvell technology those shares up just about 1%. the other side of the coin, the nasdaq 100 laggards. taking a

look at those in the premarket strategy. pulling back more than 2%. bitcoin pulling back a bit right now as well. globalfoundries mongodb comcast our parent company a microchip tech running out the worst performers in the premarket. we're also tracking a re-acceleration of the tech trade with nvidia and amd reaching deals to sell advanced ai chips to saudi company humane. this is all part of the president announcing with the white house is calling a $600 billion saudi investment in the u.s. take a look here. we showed you some of this video yesterday on worldwide exchange. the president leading a visit to the kingdom with a lot of high profile ceos, including the leaders of tesla, ibm, palantir, blackstone and blackrock. so back to the stock moves. nvidia had the biggest positive impact on the s&p 500 yesterday. amd finished more than 4% higher. taking a look this morning we just showed you two of the names nvidia and amd. they're both higher about one and three quarters of 1%. tesla is well up about 1.5%. but amazon and palantir pulling back. palantir essentially flat, but both pulling back in the premarket. we also saw some big gains for the ark innovation etf,

finishing more than 5.5% higher yesterday. top holdings include some of that high valuation tech like shopify and tech that hasn't turned a profit yet, like archer aviation and crispr therapeutics, that investors in recent weeks and days have been kind of shying away from when there was more concern about the economy. taking a look at the ark innovation etf this morning basically flat, fractionally lower. but take a look here. week to date, huge moves to the upside week to date up over 11.5%. all right. we also saw some moves in the currency market. the dollar it pulled back yesterday. this morning pulling back once again pulling back about a half a percent week to date essentially flat for the greenback. and we're also looking at oil huge day for oil. yesterday wti and brant crude both rallying more than 2.5%. today however we're seeing a bit of a pullback a major pullback oil actually hitting its lows this morning pulling back just about 1% week to date. oil up more than 3%. you see the big upside moves a lot of parts of the market taking big upside moves this week. and we look at treasury yields moving higher despite that cooler than expected inflation. read the two

year actually crossing the 4% mark this morning. very close to that. the benchmark coming in at 4.46 okay. that is your setup. now. want to turn our attention back to how trade is influencing the markets. we're looking at china. and while the us markets they're riding a historic rebound following monday's tariff truce, the same just cannot be said for china. modest gains across the board so far this week for its main etfs. take a look at the msci china etf, the mcci that we track. very often you're seeing the moves there. however that's not stopping goldman sachs and other major banks from boosting their growth forecast for the region. jp morgan now targeting nearly 5% growth for the year. the previous estimate was 4.1%. joining me now with much more is ben harburg, core values alpha founder and portfolio manager of its greater china growth etf. ben good morning. good to see you. >> good to be with you. >> all right. so ben when we're looking at these chinese equities is all the good news priced in. is there just more upside. and how much of it is it depending on a permanent deal.

our investors are a little cautious right now because it's only a temporary deal. >> i take the. >> opposite view. >> i'd say a lot of the bad news was. >> priced in. i mean, our. >> etf is. >> nearing its all time highs this year. you know. >> if you. >> looked at the numbers, for instance, even kind of pre. tariff war. it was. >> you. >> know. >> a 4. >> to 1. >> ratio of. >> chinese imports into america versus. >> american exports. >> into china. >> and so. >> if you. actually look at the true fundamentals behind a lot of these chinese. >> companies. >> they had limited exposure to the. >> us or they were suppliers. >> to an american. supply chain. and so. >> really actually limited. >> you know, a lot of. >> headline noise. >> but not. >> a lot of. >> fundamental impact on the. >> on the performance of these businesses at. >> a. >> financial level. >> we're looking at the us and us companies and saudi arabia, and looks like we might see more in the middle east. what does it mean for some of these chinese companies, china and saudi arabia, they have pretty friendly trade, you know, terms right now. and their trading partners, are we seeing basically the us push china out of the middle east?

>> i think that's true. >> but again. you know, the. >> middle east is. still a. >> relatively small market for. >> for china. >> you know, they they were obviously. >> much more. >> excited about southeast asia. south america. >> meituan. >> for instance, just. >> announcing yesterday. >> a. >> $1 billion. >> investment into brazil. >> so the middle east is kind of a very. hot market and one that, you know, moves. >> very quickly because it's very top driven. >> but at the end of. >> the day. >> you know. >> saudi arabia is the size. >> of germany. >> in terms of gdp. >> and so. >> it's. >> you know. >> it's easy. >> to kind of get lost in the headlines. but i don't think that you're going to see a. full displacement. but certainly america needed. >> to come. >> back hard. >> china had really taken significant. >> advantage over american. >> retrenchment from the. >> middle east. >> and i. >> think president trump. >> did a fantastic job of coming into. >> saudi arabia. >> and. bringing the best of. >> america with. >> him and. striking a. >> lot of those. >> deals that were. >> long overdue. >> you know, there's a lot of talk about supply chains moving away from china, company sourcing in other parts of the world now with this temporary deal. and i think there's a lot of hopes there's going to be a longer term deal. does that dynamic and that narrative

change and does that benefit the stocks. >> obviously people in their supply. >> chains hate volatility. >> and so it still doesn't feel like there's a huge amount of predictability around the. >> trade dynamic. >> as you note. >> you know. trade wars aside china was. >> already. >> you know. >> getting quite. >> expensive as a as. >> a manufacturing hub. >> and so already. >> without all the. >> tariffs. >> and just from. >> a very natural. >> evolutionary perspective, a lot. >> of. >> that stuff was going to other parts. >> of south asia. >> southeast asia. >> so i. >> think that. >> trend is secular. but but certainly having stability in the relationship. >> having. >> really. >> great people on the. >> american side, like treasury secretary scott. >> bessent. really providing a stabilizing ballast. >> to. >> this relationship, i think gives. >> people more, more continuity and support for longer term investments. >> all right. so ben, i'm just assuming here, but it seems like you have some optimism of a longer term deal because you said right now's a good time to look at companies that have a big presence. they get a lot of their sales from the us. you gave us two names that i don't think a lot of us investors know. one is anker. they get

about 50 to 60% of their revenue from the u.s. the other is kai vacuum. they're a supplier for brands like stanley. so you think right now is a good time to invest in these companies that have big u.s. exposure? >> these are names that, you know, we've seen jump in the last. >> few days because. >> they, you know, really were. living on a knife's edge as it pertained. >> to, you know, to. >> to exporting. >> their products. >> into the united states. >> but as you know, the american supply. >> chain. >> is still very much. dependent on china from. >> a pharmaceutical basis. >> for instance. >> 16% of 1,670% of inputs coming out of china. >> in the automotive. >> space, of. >> course. >> in the electronics space. >> and so i think anyone who is still reliant on chinese core inputs. >> for. >> their supply. chain is. >> going to see. >> a. >> nice boost. >> over the. >> coming days. >> all right. ben harburg, always great to see you. thank you very much. coming up here on worldwide exchange, fresh optimism around the owner of calvin klein and some easing risk around china. we got your morning call sheet coming up next. right now take a look at next. right now take a look at pvh shares. they're up just over silver is at a ten year high.

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with gen z consumers and bank of america, raising its price target on carvana from 2.95 up to three. 25 b of a cites the ceo's comments on the company's push to scale production of its facilities. all right. time now for your global briefing. foxconn reporting first quarter profits surged 91%, beating estimates on strong demand for ai servers. but the world's largest contract electronics maker is giving a more conservative outlook for the year, bracing for potential headwinds from u.s. tariffs. foxconn, which is based in taiwan, assembles most of apple's iphones at factories in china. sony is forecasting flat profit this year as it factors in a $700 million hit from u.s. tariffs, the company says this does not reflect this week's trade deal between the u.s. and china and the actual impact? well, that could vary. sony also announcing a new stock buyback and plans to partially spin off its financial unit at the end of september. shares of burberry they're higher as the british luxury company announces it's cutting 700 jobs as it tries to cut costs and turn that company around. the company also reporting a smaller than expected drop in fourth quarter

same store sales. it's not giving guidance for the year, but says geopolitical developments are making the economy more uncertain. burberry's bump however, it's not carrying over to those other european luxury names. all of them are lower this morning. all right. coming up here on worldwide exchange, we've got the one word that every investor has to hear today. and the stock pick that every investor needs to know. plus opening the floodgates. more on the president's trip to the middle east, paving the way for fresh deals in the region. we're going to be back right after this. >> this area is a perfect spot for wind generation. >> we have one gigawatt. >> of installed capacity. >> as of. >> now. >> this. >> is the biggest. >> wind farm in brazil. >> people around. >> they saw the development that the wind industry brought to the locations. i feel that i have this responsibility to bring something to this country. and working with i got this $1,000 camera for only $41 on dealdash.

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>> welcome back. >> to worldwide exchange, the newsletter for you now, and president trump's middle east diplomacy and dealmaking tour, meeting with leaders in riyadh this morning before heading out to qatar later today. the president laying out his vision for the region and one of his top priorities, which is iran. >> i want to make a deal with iran. i want to do something if it's possible, but for that to happen, it must stop sponsoring terror, halt its bloody proxy wars, and permanently and verifiably cease its pursuit of nuclear weapons. they cannot have a nuclear weapon. i don't imagine there's anybody at this table or anybody in this room that would say they can't. >> the president's visit to the middle east is opening the floodgates of new business deals, paving the way for countries like saudi arabia and others to pursue their ambitions. kristina partsinevelos joins us now with more on the story. christina. good morning. >> good morning frank. well, nvidia hitting $3 trillion in market cap again yesterday on news of a big partnership with

saudi arabia to build these massive data centers and of course, help train hundreds of developers in the country. the focus now turns to the rest of the middle east. my source tells me to expect another. i deal with the united arab emirates this week. the trump administration is definitely clearing a path for saudi arabia and the uae to pursue their ai ambitions. and so that's how saudi arabia secured some of nvidia's most advanced chips, technology that was previously restricted in the region. and this is a significant policy change from washington until now or until yesterday. companies like nvidia, amd needed licenses or special u.s. licenses to export advanced semiconductors to many middle eastern countries like the arab emirates or saudi arabia, over concerns of their close relationships with china and, if anything, that the chips would eventually end there as a back door. but it wasn't just amd. there was a who's who, amd nvidia of ceos that got the green light from the us government, aws, also cisco,

qualcomm all announcing technology partnerships with saudi arabia. the fact that saudi arabia plans to get hundreds of thousands of chips, about 18,000 of nvidia's top ai chips within the next five years should really strengthen nvidia's fiscal 2027 earnings and beyond and potentially alleviate investor concerns about moderating us cloud spend and loss of market share in china due to export controls. but in other words, the middle east could fill the gaps so that nvidia can maintain its growth momentum in the years to come. and i say the gaps, because you have the doors closing in china and the doors opening in the middle east. for a lot of these tech companies. >> all right. so christina, just give our viewers the headline. they're just catching up. you said your sources telling you another big deal with the uae could be coming up today. i want to ask you, we saw a number of u.s. companies strike deals with saudi arabia, including cisco, that has earnings coming up later today after the bell. are other companies here in the u.s. going to benefit outside of some of these big headline names? i'm thinking data center companies, companies that provide cooling

for data centers, other things like that. or will that business go to other foreign companies, maybe chinese companies? saudi arabia and china have very friendly trade terms. >> well, the restrictions were not only on the individual chips right to china. it was also the manufacturing equipment. so to your point, that would encompass everything that's inside the data center. and if the us government is giving the green light to send advanced technology, that would include all of the hardware like cisco, even the ethernet cables that would connect within a data center, the liquid cooling, the servers that make it. so this is a big shift in policy for the united states to be opening the doors to the middle east and allowing these american companies, which i assume would be focusing more on the middle east going forward, given the flood of capital over there and the willingness to really build out their ai infrastructure. whereas with china is currently and going to be blocked to a certain extent. >> all right. lot of questions about what this means for the whole ai trade. jim cramer

actually tweeted out a few days ago that that saudi arabia and middle east demand wasn't even priced into nvidia. so potentially a lot more upside there. kristina partsinevelos, great to see you. thank you very much. all right. coming up here on worldwide exchange making the case for this chemicals play where our next guest is bullish on the stock despite it being down for the year. we're going to reveal our mystery chart coming up right after the break. and if you haven't already you should follow our podcast. if you missed worldwide exchange, check us out on apple, spotify and other apps. much more worldwide exchange coming up worldwide exchange coming up (vo) explore the world the viking way from the quiet comfort of elegant small ships with no children and no casinos. we actually have reinvented ocean voyages, designing all-inclusive experiences for the thinking person. viking - voted world's best by both travel + leisure and condé nast traveler. learn more at viking.com. like i'm

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the new streaming platform from the number one source in business news watch live or on demand, go to cnbc.com plus now. >> welcome back. >> to. >> worldwide exchange. as we close in on the 6:00 hour, a check on a few big stories that we're following this morning. the faa and airlines are operating out of newark liberty international airport will meet later this morning to discuss ongoing issues at the airport, leading to a wave of recent delays and cancellations. potential moves could include actually cutting the flights out of newark. take a look at airline stocks this morning. you're seeing a lot of red here on the board. delta pulling back about a half a percent. same story for american airlines. united airlines one of the bigger carriers. they're pulling back almost a half a percent. microsoft announcing it's laying off about 6000 people, or just about 3% of its workforce, the cuts of the largest since the tech giant slashed 10,000 jobs back in 2023. the financial times is reporting that tesla has formed a new special committee to review the elon musk's pay package. the ftc says the committee's review could

result in a new stock options package, or other ways to compensate elon musk for his past work. musk is currently fighting in court to restore his $56 billion pay plan from tesla. shares of american eagle they are plunging ahead of the open after withdrawing its full year guidance. the retailer also revealing it's writing off $75 million in inventory. shares of american eagle actually believe they're hitting their lows of this morning, pulling back more than 14%. chime announcing plans for an ipo. the fintech company will go public on the nasdaq under the ticker ch. no word on the price range for shares. meanwhile, etoro is also set to begin trading on the nasdaq today after pricing its ipo at $52 above its expected range. also, the estate of microsoft co-founder and portland trail blazers owner paul allen announcing plans to sell that team. the team recent estimates, recent estimates, i should say, have valued the team at $3.6 billion. allen, who died back in 2018, bought the trailblazers in 1988 for only $70 million. wow.

what appreciation. all right, turn our attention back to the markets. the markets looking to keep up the positive momentum that's pushed the s&p up 4% this week and into positive territory for the year. take a look at futures. we can see we're in the red across the board. fractional declines for the s&p and the nasdaq as well as the dow. joining me now is sethi managing partner and portfolio manager at douglas c lane associates. he's also a cnbc contributor. good morning. always good to see you. >> good morning frank. >> so why don't we start with your word of the day? >> sure. >> it's volatility, frank. i mean, that's. >> what we expect. april was, you know. >> very few days that you were even. >> 1% up or down. i mean, it was more than that. so i think given where we are, not just. what's going on in terms. >> of the global. >> events. >> but also. >> in terms. >> of earnings. >> and companies. >> you know, giving us guidance. so a lot of volatility ahead. >> and i think a lot of. >> opportunity ahead. volatility does. >> not necessarily. mean that you should have angst, but it. >> also means that you have opportunity ahead. >> we're looking for

opportunities. how are you viewing the tech trade right now specifically chips. we've seen chips move about 45% from their low back in april. do you believe that's sustainable and is it also sustainable for chips to maintain leadership? >> i do think they will. >> maintain leadership, but i do again. >> i would i would add the volatility. >> word to it. you've seen nvidia now. >> at 130. qualcomm's come back. broadcom a lot of. these that. >> were taken. for dead are now coming back again. >> but you'll. >> see some. >> give and take depending especially. >> on how the tariffs are. >> and really what the demand is. i mean what we're going to end up doing frank, is once we get through. this and you get. >> some type of stabilization. >> in terms of tariffs, earnings are going to matter. cash flows are going to matter. and really what products all these companies have. so i think as the haze lifts you really have. >> to go. >> back. to fundamentals. and companies like nvidia and qualcomm, two of our companies that we own, we really like the. fundamentals long term because they do have the ip that we think can provide earnings growth in the future. >> when we're looking at this

rally that we've seen off the lows, do you think this is something that you would, you know, quote unquote chase, or is this something you might want to fade and also want to ask you about bonds? we were just talking about this earlier on the show. the two year yield just kind of hitting 4%. is that creating competition for stocks in your mind after this tremendous rally? >> i do. >> think in the short term. >> it will. >> because investors will say, hey. >> i'm getting. >> 4% to sit. >> out at this point. >> especially as the markets. >> come back. so you've kind of used. >> that as an approach to diversify. but i do think, you know, 4% is an. >> important number for the market to look at. >> and especially. >> going out to the. >> ten. >> year. because that's where it really the. >> companies look. >> at as. to what's. >> our. >> cost of capital. so i think that's going to be really. >> interesting as well. >> all right. so we got to get your pick for today. what is your pick and why. >> so we like our products frank. >> it's a leading industrial gas company. they have long term contracts. >> a couple of catalysts here. >> a. >> new management. >> team, new ceo has been installed. the. >> company is also focused on their contracts. they've gotten rid of a lot of their clean hydrogen contracts. >> they're really. >> focused on.

>> now looking at their customers. and again, the contracts that they have are not just short term. they're one to 3 to 5 years. and as we get. more production back to the us over time, you want to have companies. >> that have. >> steady earnings. great balance sheets. >> company has almost a. >> 2.5% dividend yield. so we really. >> like this play. >> it's been undervalued. it hasn't really been looked at. >> stock's been out of favor. >> and you know. >> we expect double digit growth for. >> a multiple. >> that's close to 20. >> so i think this is going to be something that we. >> want to. >> hold as a core holding in our portfolio. >> really quick question. we've got to make it quick. we've seen industrials take leadership on a sector basis year to date. is this a stock that's going to benefit if we continue to see this growth in industrials. >> i do. i think because as demand comes back to the. us you're going to have companies like our products benefit because they're. >> the key. >> supplier for all these. >> companies to. >> grow their own production. >> all right. so sethi. always a pleasure. thanks for joining us this morning. >> thank you, frank, thanks for having me. >> all right. before we let the audience go, here's what to watch today. we get weekly mortgage applications ahead of the open. we're also watching for earnings from cisco that we

mentioned earlier also corps. we've and we get some fresh fed commentary from philip jefferson and mary daly later today. one more look at futures before we let you go as well. take a look at futures. we saw futures go into the red a short time ago. the dow was positive. kind of moved down into the red. that might be part of a downgrade that we just saw across not too long ago. looks like the dow would open up about 20 points lower. the s&p and the nasdaq both fractionally lower right now seeing a big rally when it comes to tech. pulling back a bit in some parts today. we'll have to continue to watch that. that does for worldwide exchange. squawk box starts right now. >> good morning. >> president trump making. >> his. way across. >> the. >> middle east. >> after publicizing billions of dollars in business deals in saudi arabia. >> we could get more announcements today. >> american companies poised to benefit from the. renewed u.s. middle eastern ties, chip searches, chip surging yesterday, we'll tell you by how much. and tesla reportedly mulling a new pay package for elon musk as his. last one, worth tens of billions of

dollars, is tied up in court. it's wednesday, may 14th, 2025. and squawk box begins right now. good morning, everybody, and welcome to squawk. >> box right. >> here on cnbc. we're live from the nasdaq market site in. times square. i'm becky quick along with andrew. >> ross sorkin. >> joe is. >> off today. >> let's take a look at what's happening with u.s. equity futures. after a big day for the s&p 500 the nasdaq yesterday. >> you're looking. >> at some modest declines. >> this morning. >> the dow futures off by just over 25 points nasdaq futures down by about 20. and the s&p down by just over seven points. but again yesterday was a big day. and for the year the s&p 500. >> has. >> erased any losses. >> dow is only. >> down by about 1% for the year to date. and the nasdaq is down by just over