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tv   Worldwide Exchange  CNBC  May 25, 2022 5:00am-6:00am EDT

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it is 5:00 a.m. here on cnbc and here is your top five at 5:00. begin with tech stocks looking for a rebound after tuesday's selloff. futures are higher retail getting a bump in the pre market this morning on up beet results from nordstroms trouble for tim cook and company. new reports that apple's next iphone model is facing serious development delays we'll explain why and we'll say development better next time plus nelson peltz he's at it again, this time targeting a
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fast food giant sending one stock soaring. and later a closer look at wall street's fear factor what investors are saying about the selloff. it's may 25th, 202:22, you'r watching "worldwide exchange" right here on cnbc good morning, happy wednesday i'm frank holland. brian sullivan is on assignment this morning we'll have the latest on the mass shooting oat a texas elementary school that left 19 children and two adults killed the gunman also killed first kick off the hour with a check on the markets and your money right now. stock futures slightly in the green. fractionally hire, actually dow jones appears lower, a minute ago it was higher. this after a mixed day on wall street yesterday that saw outside selling in tech taking the nasdaq down more than 2% on
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the day. investors looking squarely at snap in the internet ad space. as the latest leading indicator, possible indicator for a possible recession shares looking for a rebound this morning after a decline yesterday. down 20% yesterday you see up .5% now. the ten year trading well below 2.8% right now at 2.745, well below the 2.8 mark and the 3 mark. crude right around $110 a barrel right now. seeing crude at 114, wti just about at 111 both up about a percent right now. seeing moving in bitcoin and either up this morning, bitcoin still below the 30,000 mark that so many people say is the crucial level for the cryptocurrency sherry is in asia and
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julianna tatelbaum is in london. sherry, good morning, let's begin with you >> good morning, frank good morning, everybody. we did see a higher but cautious session playing out in asia. the reality is central banks around the world going for rate hikes to fight inflation new zealand central bank was one of them this morning and surprised the market with a hawkish guidance the bank of korea is on calendar tomorrow as well we saw both currencies gaining firming against the u.s. dollar. and the geopolitical factors to note north korea's missiles being one of them. zooming into the chinese markets. we did see a bit of a rally in late sessions, small gains coming through trying for a rebound from their worst session in close to three weeks yesterday. however growth worries are still hanging over minds and global banks have been cutting their
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growth outlook for china due to covid lockdown however today what was in traders' as well as investors' minds another pledge for economic support this time around for property and infrastructure and here in hong kong, al by bah bah shares closed down 1.5% ahead of earnings report today. now to europe, julianna tatelbaum is in our london news room good morning >> good morning. here in europe it's been a strong start to the trading session. gaining some ground from yesterday when the stoxx 600 fell about 1.6%. it was a down day yesterday and that relatively resilient sentiment in asia seems to be filtering through to the european session today the sectors this morning we are seeing outperformance in basic performances as well as utilities. utilities was a key under performer yesterday so we're seeing investors put money back
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into those names and reversing the moves we saw yesterday we are seeing pressure travel and leisure as well as technology it seems the outsized selloff in the nasdaq yesterday is having impact on technology names here. here in europe, things steady as they go so far today back to you frank. let's get a check on the top corporate stories. silvana is here with those good morning. >> shares of wendy's surging in the premarket this after a new filing revealed the largest shareholder is exploring a potential deal with the fast food giant trian owns a 19.4% stake in the company and said a deal to enhance shareholder value could include a major acquisition or murder the ceo of stellantis is out with a warning, speaking with media after announcing a $2.5 million ev battery plant in
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indiana he says he expects a shortage of batteries and raw materials needed to make ev vehicles in the coming years stellantis is the world's fourth largest car maker. and ride hailing company lyft said it will slow hiring and look at budget cuts in some departments in an effort to rein in costs shares of lyft are down more than 60% this year so lots to keep an eye on there. >> just so much disruption in the ride share space thank you for those headlines. appreciate it. turning back to the broader markets and talking a little tech after yesterday's sector selloff thanks to snap sounding the alarm over quote a de
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deteriorating macro environment. thanks for being here, malcolm. >> good to be here. >> we have you on to talk tech but you've been looking at major retailers, including walmart and target and you say their comments on things like supply chain and inflation have been insightful about the rest of the market, especially tech. you're saying people shouldn't have been surprised by snap because what walmart and target said should have been an warning. can you explain that >> in an environment we're worried about whether the fed is going to raise rates to the point we end up in a recession, the focus has to be on those main street telltale signs like walmart and target if we're in a recession and people aren't able to go buy the same detergent and tooth paste things they normally buy regardless of what the price is, we have to be concerned that's going to trickle through the
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rest of the economy. we look at gap, tjmaxx as far as the apparel side is concerned, nobody is buying that next t-shirt when they're worried if they still have a job or whether inflation is going to cut the pay paycheck so that's why walmart and target numbers were quite ominous for the market anybody who's looking for an indicator, whether we're actually in recessionary times or not. >> question, do you believe snap is an indicator? snap has faced a lot of stiff competition from instagram, twitter, people moving into that same space, short videos i was on instagram yesterday and people are moving away from posting a post, they're doing reels which are similar to what snap offers you. do you think snap is a precursor to what we're going to see from other big companies going forward? many had revenue growth just not what we saw in the pandemic.
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>> i don't i'm surprised so much attention has been paid -- the fact we're looking at snapchat for a precursor for what ad income is going to look like compared to like a google or facebook. if we looked at facebook's numbers and said they're down 50% or so for the year and they're foretelling tough ad revenue numbers i'd pay a little more attention to that and care but snapchat has been a dying breed sincetiktok became a thing in the states. i think it's a matter of the competition they're up against more so than them being able to tell us what the add spending timeline looks like. if folks are worried about recession, companies are worried about recession, the first place that gets cut is the ad budget so it makes sense we see google down on those numbers, facebook
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down on those numbers. you also manage money. you shared research with me about bonds and stocks, saying over a 6 month horizon, only 9% of the time that bonds and stocks move in the same direction, negative, you pointed out bgit, an etf for the vanguard intermediate treasury fun, looking at that what does it say that bonds and stocks were lower the last six months >> we're supposed to see the seesaw effect when we look to the stock market, s&p down 17, 18%. that should mean i'm able to go to the bond market, as your example, which tracks the twos, fives, and tens, frtreasuries i should be able to go to that as a safe haven say if i'm not going to make a ton of money, i'm not going to lose anything but since last year, the selloff, the vanguard is down
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across the board, it started selling off about at the same time it's a scary time if i'm an investor looking for what that safe haven trade is. even just going to cash isn't necessarily the answer when we have 8% inflation eating at the dollar so it's a tough time to be able to say if the market is doing this, then i'm supposed to do that when everything is sort of selling off positive lily correlated to use your terminology there. >> malcolm, we appreciate the insight. when we come back, we head to davos, switzerland for a cnbc exclusive with gina raimondo and jon najarian is here looking at key technicals. and later why apple is reportedly facing development delays when it comes to e xtthne iphone a busy hour ahead when "worldwide exchange" returns stay with us
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welcome back turning attention to davos, world business and political leaders continue to meet amid the forums annual meeting tackling a wide range of political, economic and social issues sara is there and we're now joined by a special guest. >> good morning, frank, good to see you. it's my pleasure to welcome the first guest of the day, the commerce secretary of the united states gina raimondo.
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great to have you here you are here in davos delivering a number of messages but clearly texas is front and center. what are you telling the international community from the administration >> it's heartbreaking. it's heartbreaking and all too familiar so my message to every member of congress, every governor, every policy maker in america, stop and ask yourself what are you going to do about this it's an untenable situation that we have innocent kids being gunned down in their schools and we have the power to change that congress could change that, governors, state ledgegislatures can change that. we cannot be immune to it. so i'm asking everyone to pause today, it's not acceptable ask what you're going to do to prevent this. >> is there a message for ceos as well? >> i would say the same to them. it is not good for america, it's
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not good for business. every single american has an obligation to figure out what they can do to rid ourselves of the scourge of gun violence. >> i have not heard corporate america speak up against the gun lobby, i do wonder if this time will be different? >> i do hope so. the gun lobby, that's what it is they're lobbying for the interest of gun manufacturers, not children who deserve to be able to go to school -- you're a mother, i'm a mother, kids deserve to go to school -- >> didn't sleep last night. >> -- we they get to go to school and worry about school work not if they're safe. but i want to talk about some economic issuesyou're her to discuss traveling to asia with the president to talk about this alignment with 12 other countries in asia, x china, don't call it a trade deal why can't you include getting
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rid of barriers and tariffs if if you are going to do this cooperation agreement with asia? >> this is a huge announcement the president made it in tokyo two days ago this is the biggest economic partnership the u.s. has had with asia. it's within a dozen countries, representing more than 40% of the world's gdp. it isn't a trade deal, though. it's a new kind of an economic deal to meet the challenges that we face today. for example, we're going to tackle supply chains we're going to tackle worker training, digital training we're going to tackle standard setting for emerging technologies to make sure that emerging technologies like artificial intelligence get rolled out in a way that's consistent with our values of privacy. so it's not limited to trade and we -- it was so exciting i was with the president in tokyo. he was surrounded by 11, 12
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other world leaders and there's a lot of enthusiasm. america's affirmative economic vision in the region which we haven't had in a long time >> why not make it a trade deal? you can't sell it politically? >> president biden and the congress has said we're not going to reenter tpp at this time but yet we have to have an affirmative vision so we're focused on other issues. which i think everyone can agree that technology, semiconductors, artificial intelligence, digital upscaling, decarbonization, these are the issues that matter the most today and those are the issues we're going to tackle in this framework. >> semiconductors matter a lot right now. and you've spent a ton of time working on the issue, you were in the plant in south korea, the samsung plant. what's the plan? feels like we're moving towards friend shoring with
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semiconductors as it becomes a national security issue. >> it is a huge national security issue and we need to move to making chips in america. the president and i friday night visited the largest semiconductor manufacturing facility in the world. it's a samsung facility in south korea. and you look around, it supports over 10,000 workers, an amazing manufacturing operation. we should build something like that in america. and if congress doesn't pass the chips act and pass it quickly, we're going to lose out on that. you know, intel, micron, samsung, they're all -- they're growing. you know they're growing they're going to build future facilities if congress doesn't move quickly, they're not going to build them in america. they're going to continue to build them in asia and europe and we risk losing out on that you mention national security, america buys 70% of its most sophisticated chips from taiwan.
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those are the chips in military equipment. that's like 250 chips in a javelin launching system you want to buy all that from ta taiwan that's not secure. pass the bill, congress, pass chips and get to the business of making those chips in the united states of america to secure our future. >> which raises the question of what would happen to the semiconductor industry and american security if china does invade taiwan. it's not a pretty picture. you don't have to be a national security expert to know that is scary and untenable. >> the problem with the u.s., at least when it comes to addressing some of the issues now, it takes a while to build these, takes years, could be inflationary, labor cost is not the same in china as it is in the u.s. so how long is this inflationary problem within the industry
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going to lack? >> hard to say i think there's a lot of supply in chips some things are more important than price you can't put a price on america's national security. the fact that we're buying two thirds of our chips from taiwan, and these are the chips we need to keep americans safe and secure, we have to make those in america. and -- period. we can't negotiate that. >> fair point. but everyone here in davos is wondering, is the u.s. going into recession we're dealing with inflation, it's a political problem, an economic problem what are you telling the international community on a week we're hearing profit w warnings from a snap and concerns from target and walmart and corporate america sounding the alarm on the economy. >> i would say it's fair to sound the alarm on inflation families are feeling it. you hear it at the grocery store and the pump the fed needs to continue to take swift action quickly to
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bring down inflation i am not at this point worried about a recession, our economy is strong, growth rate through the roof, labor market is strong companies are investing. talk to companies here they're making huge capital investments. inflation is the problem but the fundamentals of america's economy are strong >> thank you so much for taking the time. >> thank you for having me. >> in a cnbc exclusive back to you, frank, in the studio. >> sarah eisen in davos, thank you. a live report from uvalde, texas coming up next, the latest mass shooting where at least 19 children and twodu alts have been killed. "worldwide exchange" is back right after this
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welcome back to "worldwide exchange." now to a developing story this morning and yet another mass shooting this time at an elementary school in uvalde, texas. just about 80 miles west of san antonio that left at least 19 children and two adults killed the gunman is killed as well president biden speaking to the nation about the violence last night. wendy joins us now from uvalde good morning. >> good morning to you, frank. it's been a stormy night here in south texas which only adds insult to injury in this heart broken community
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we can tell you that a fourth grade teacher who had an intense surgery overnight did survive. but with others hospitalized the death toll could still rise. another mass shooting in america. this time shots fired and lives lost at an elementary school >> there was a mass casualty incident at robb elementary school in uvalde, texas. >> reporter: according to the texas department of public safety, 19 students, second through fourth graders, and two teachers were killed governor greg abbott said the gunman abandoned his vehicle, walked into the school midday tuesday, armed with a handgun and possibly a rifle, and opened fire police swarmed the campus. >> they locked down the school really quickly and started evacuating children out through breaking windows and pulling the children out through the windows and getting them to safety. >> reporter: the school not the only crime scene.
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>> in addition to that, it is being reported that the subject shot his grandmother right before he went into the school >> reporter: the gunman identified as salvador ramos, an 18-year-old resident of uvalde investigators say he is among the dead and acted alone the deadliest school shooting in texas history. >> my heart is broken today. >> reporter: another community pleading for prayers, for more lives cut tragically short investigators tell us that the suspect's grandmother is expected to survive. we can tell you that texas rangers do confirm that the suspect indeed bought those two guns on his 18th birthday. that's the latest here live in uvalde, texas. back to you. >> wendy, obviously this tragedy
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has shocked our entire country is there any word here on a possible motive? >> reporter: i think we're all asking why, aren't we, frank i know investigators have been scouring his social media accounts to see if there were any hints. we can tell you at this point that he did say that he suggested some kids should, quote, watch out and he was showing his assault weapons on those social media accounts. hopefully in the days and weeks to come, this heart broken community will have even more answers. >> certainly hope so thank you for the very latest. let's check this morning's other headlines. phillip men a is in new york wit the latest good morning. >> good morning. tuesday was primary day in five states in georgia, brian kemp supported by mike pence defeated david
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perdue, president trump's hand picked candidate by 50 percentage points. in november she'll face stacey abrams who won unopposed also in georgia, brad raffensperger who was targeted by mr. trump for not supporting his push to find votes handily won his primary against jody heist. it was not all bad news for the president, herschel walker emerged victorious with more than two thirds of the vote. he now faces democrat rafael warnock in november. when we come back on "worldwide exchange," forget walmart and target rebound under way thanks to one department store your big money mers ovare coming up and "worldwide exchange" will be right back.
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consolidation played a role in the crisis it's wednesday, may 25th, you're watching "worldwide exchange" here on cnbc and welcome back to "worldwide exchange. i am frank holland in for brian sullivan right around 5:30 a.m. on the east coast here's how your money and markets look right now futures losing early gains after a mixed session yesterday. nasdaq closed down more than 2.5% futures in the red half an hour ago they were slightly higher. the dow looking like it could open up slightly lower just 25 points lower at the open the bond market, sharp moves in yields in the past 24 hours. the ten year now right at 2.74%. a sharp move to the down side yesterday right before the opening bell we want to hit the energy market right now oil prices right now just up very slightly right now on increasing expectations for
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demand, wti 111, brent crude at 115 a barrel silvana is here with our top stories. good morning. >> good morning. apple's development schedule for iphones is reportedly falling behind due to ongoing disruptions from china's lockdowns. the issues are impacting one of the company's new smart phones set for release later this year. the report adds apple told suppliers to speed up development efforts to make up for the lost time. the tech giant previously warned that the china lockdowns have disrupted the production of current models and could impact by $8 billion this quarter the federal trade commission is launching an investigation into the ongoing baby formula shortage and whether mergers contributed to the problem the agency saying it will take action against industries or businesses taking advantage of
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the prshortage by price gouging. abbott is releasing special formula cans for need. and starbucks is selling juice brands to bolt house farms the move comes as starbucks looks to focus efforts on the growth of its coffee business and improving its stores today marks the 100th trading day of 2022, a year that's seen historic turbulence as megacap tech stocks have seemingly collapsed. the dow and s&p 500 are both on track for the worst first 100 trading days since 1970. for the nasdaq the worst ever. analysts blaming the usual suspects, inflation and impact on company earnings, the war on ukraine and covid lockdowns in china.
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let's bring in jon najarian, a cnbc contributor good morning. >> good morning, frank great to be here. >> always good to have you, especially on a day like this. futures were slightly higher now they're slightly lower a lot of people are trying to figure out where's the bottom? are we at the bottom yet, is there a down side? what's the options market telling you, at least at this moment we know it can change any moment >> sure. what we've been seeing is there are a lot of people looking for that bottom. i would say, not yet and two reasons. we need to see volume, the volume of stock and options traded as well as the volatility, both in elevated stature. we saw volume on friday just surge to 52 million options. and nearly a record in stocks, too. that's great however, volatility did not move
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up that dramatically and we had that big turn around, frank that you talked about on friday because we were down hard and in the final half hour or hour of trade we had the zoom to the upside take a look at the graph on monday which was a stark comparison because instead of being a 24% jump to the upside, we had a 28% lower volume trade, which to us says that, you know, nobody was buying into that there might have been some short covering but nobody was really believing in that rally. so that's why we say you need both, volume and volatility to be moving to the upside at around the same time haven't seen that yet, frank so we really haven't felt like people have thrown in the towel. and that's not just retail that's pros and retail, need to throw in the towel to see that >> you called that rally we saw on friday fake can you explain that
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why was it fake? >> nobody bought into it the volume volume tells -- it's like a truth detecter, frank. if we're not seeing volumes skyrocket, the last hour of volume was not there at all. so, you know, you trade for six and a half hours in a trading day, not including the afterhours and so forth. we did not have that endo endorsement. that's why i say fake. so more or less, people just stepped back, let the market go up and reversed it right away on monday, of course, because there wasn't anything behind it. now we have tlt, which is a bet that interest rates go lower, which you've been talking about all morning, down at 274 i think you said and that's -- that etf goes higher as interest rates go lower. we have big bets that continues in that direction. maybe we hit 2.5% in the next several weeks.
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that would be great for tech stocks, frank. because they're so sensitive to interest rates and so forth. but then the reason that interest rates are moving down like this. is that they're thinking the fed won't be able to make the moves that the fed says it wants to make. >> one of the other picks. you're looking at baker hughes, up 6% for the week, the s&p only up about 1%. obviously gas prices are rising. is this a play on the fact that gas is becoming more expensive, oil is becoming more expensive >> yeah we set a record virtually every day since march, frank. that's a crazy number of days. it's not 100 trading days in the year like you just mentioned but nonetheless, seeing the price at the pump, regular, unled out to the diesel fuels going higher every single day, you can bet, and people are betting, that the likes of baker
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hughes, slumber j are going to have huge demand for their oil service they provide that's why we see the big upside call buying in baker. >> i'm going to use your word, a pitch la tour, that's me right now. i said i wasn't going to drive as much but i filled my tank yesterday, more than twice it was a few months ago thanks for being here. coming up on "worldwide exchange," your big money movers this morning, including shares of nordstrom's first as we head to break, shares of al burn flying higher after it announces it will sell in some nordstroms locations next month mcdonald's set to prevail in its proxy fight with carl icon over the treatment of pigs used for pork based products. early vote count shows the fast food giant still ahead
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welcome back time now for your big money movers, four stock stories of the morning we begin with nordstrom, sales jumping 19% in the first quarter as the store benefitted from consumers paying
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full price for clothes as people went back to work. and the discount chain seeing larger sales shares up more than 9% this morning. and lifting shares of retailers like macy's and the gap. stock two, urban out fitters, the company reporting record sales but came up shy of analysts' estimates. higher cost of materials and shipping weighing on profits inventory levels grew, shares initially fell but are up 3% this morning stock three, intuitt reported better than expected third quarter results. strong numbers coming despite a range of economic pressures weighing on the company's millions of small business customers. and toll brothers reported better than expected results
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the company's ceo said the demand is still solid, but it has moderated in the past several months as buyers begin to adapt to higher mortgage rates. shares of toll brothers up more than 3%. back to the broader markets and the mood among investors amid the volatility rattling the markets and the traditional fear factors during deep drops, some say they're remaining quiet. among them, caleb silver, editor and chief of investopedia. >> investors are feeling the fear but they're frozen in place, not doing anything about it as jon najarian said you don't see a lot of volume, craziness in the options market yet. >> interesting point put some numbers to it i know you have your own anxiety index. where's it at right now and what does that say about the market's
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anxiety, investors' anxiety now and where it could be moving to. >> our readers traffic two fear based terms, inflation, recession, bear market, that was screaming like a 2-year-old that dropped its ice cream in the pandemic in march. but our readers are concerned about macro economic events, worried about recession, personal finances but as far as the market is concerned, not terribly concerned nowhere near a year and a half, two years ago. looking at vix, not that high. we saw it higher a year and a half ago in july of 2021 and march and april of 2020. and the put to call ratio, too there's not a ton of options bet betting against the market going down, even though the market continues to go down you don't see a lot of volume there so you're not seeing the
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fear factor screaming right now, that said investors are watching the market go down day after day. >> saying there's not that much anxiety but search terms, bear market capitulation recession. margin call. may be inspired by elon musk and how to short bitcoin what is this list of search terms, where does it tell you about where people are going when you see these are the top terms what does that say about your readers and the markets in general? >> they're worried about the long-term effects of a recession. capit capitulation, capitulatory, folks look things up and then take action. the anxiety index moves sometimes before the vix they're doing research
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people are looking how to short bitcoin because it continues to fall we have a lot of readers invested in bitcoin. they're seeing if they can take advantage of the further declines at the same time we know that bitcoin is moved by big whales not minnows right now. so they're watching bitcoin and looking at loans for bad credit, which is never a good sign there's a concern about the macro economic environment and what it's going to doto people's finances. just not as concerned as other downturns this steep. >> "worldwide exchange" is an exchange of ideas. some people are aware shorting bitcoin it's a new idea to me. when retail investors are shorting bitcoin, what does that say about the crypto market to you? >> they don't have a lot of conviction out there we know there are those out there holding it no matter what. and the big money moves bitcoin around retail investors on the margin have been playing with it maybe
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trying to short it and the other coins but doesn't look like they're moving the market as much as the big money is our readers are watching this whole thing unwind and wondering if they should do something not necessarily taking action, just looking it up trying to get smarter about it in case they want to take action one day. >> sounds like capitulation from bitcoin retail investors word of the morning. on deck, jenny harrington lays out why rich valuations in some of these names are finally being reconciled in may we're celebrating asian american pacific islander heritage here's our colleague and "fast money" host melissa lee. >> i'm a better journalist because i'm chinese american i think back to my grandparents. my grandfather and grandmother came to this country with not a penny to their name, they didn't even speak english
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and they came here to give their children a shot at the american dream. so i bring that perspective and think abt atve d wn m on the jobhe
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that's how healthier happens together with cvs. welcome back to "worldwide exchange." a busy day ahead for investors at 8:30 eastern, we get the latest read on durable goods a number of high profile earnings reports out. dick's sporting good, box, nvidia meanwhile, shareholder meetings this afternoon at 2:00 p.m. eastern we get minutes from the fed's policy meeting. cnbc will bring you those minutes as soon as they're released. the markets looking to gain some momentum amid the selloff on the back of snap's warning. let's bring in jenny gillman good morning, always great to have you here.
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>> thanks, good morning, frank so a lot of people looking at snap, people caught off guard by snap can asking the question, what's going on with social media stocks, big tech, what do you think is going wrong with it or is there anything wrong at all? >> ity there's the disconnect between what's wrong with the economy and the stock. if we look at snap, facebook, twitter, pinterest, their revenue growth numbers are still good you look at snap, they guide to the low end of their guidance, 20 to 25% revenue growth now they grow revenues at 20%. that's fantastic in this kind of market but the problem is the val valuations on almost all of these were wildly, wildly disconnected with reality. this is part of a much bigger story where valuations over the past five years have gotten nuts people letting things trade at
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50 times sales assumptions that the market share would be 100% of tam it's crazy what we're seeing is a reconciliation of valuations i think that's really smart and healthy and it's -- for me it's a very, very good sign i love seeing it happen in the market i'm enthusiastic watching this even though there's a lot of pain out there when i hear, what's wrong with these companies? there's not much wrong with the companies. they're trading market around, yeah but they have revenue growth there's fighting between tiktok and insta, snap. i don't know they're all still growing and people are using them. one thing that reminds me of that charlie munger, quote, he says something like any great company can be turned into a terrible investment by running the share price up too much. i think that's what's happening or happened. >> sounds like valuation is the problem with stocks, not the business model, the revenue growth a lot of them said standards and
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expectations from the pandemic that are probably unsustainable. people are trying to figure out where the bottom is? do you believe there's one bottom or do different stocks have different bottoms. >> i love that question. different stocks have different bottoms. there's danger to the investor to wait for the bottom and keep the cash on the sideline what we know is that not everything bottoms at the same time and you need to be more nimble than that rather than to say i'll buy the market when it's down another 5 or 10% because i may not be or it may be more down than that but there are companies along the way that are bottoming two weeks ago, i added american eagle and i added easterly properties, easterly properties owns government properties like fbi and dea buildings, american eagle is a retailer. i was wrong on the timing of american eagle, right on the timing of easterly
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i would rather not miss them both even though i was wrong on american eagle i bought it at 40% off with a 5% yield. so i can suck it up and take a little down side from there. >> before we let you go. looking at futures they were slightly positive earlier today, now they turned to the down side as we approach "squawk box" in a few minutes as people are looking at how to set up their investing day, what would you like them to keep in mind? >> we're at a bottoming process. it goes back to the conversation we had where look for individual companies. and look for individual companies that are bottoming and buy those along the way. don't wait for the whole thing don't be freaked out by a huge rally on one day, a huge selloff on the other this is a natural process of reconciling valuations that got too stretched. this is a natural process of responding to tightening and higher interest rates and the risk/return ratio recalibrating
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itself don't be terribly scared this is not dark, horror where the entire economy shuts down. this is a righting of excesses that developed the past five years. that does it for us here on "worldwide exchange. "squawk box" cominupex g nt. as a business owner, your bottom line is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get
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good morning, futures pointing to a flat open after yesterday's tech wreck again on wall street, fuelled in part by snap that we talked about. what's moving now, including the shares of nordstroms on upbeat results and guidance, rare for retailers. details straight ahead
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and fast food news we have an update on mcdonald's proxy battle with carl icon. we'll tell you about a possible move by the largest shareholder of wendy's as well it's wednesday, may 25, 2022 and "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick with joe kernen. andrew ross sorkin is reporting live from davos. we'll get to andrew in a minute but we want to look at u.s. equity futures the dow futures down by about 2 points s&p up by 6 points, the nasdaq up by 13

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