it is 5:00 a.m. here at cnbc global headquarters. here is the top "five@5." wiping out of billion in market value for jack dorsey's block in one day. and going on the record. ceo of coinbase telling 13,000 listeners his take on any possible legal action from the s.e.c. and fireworks on capitol hill. ceo of tiktok fails to persuade

lawmakers of good intentions when it comes to security concerns. highlights coming up. the fed historic hiking may not stop inflation in its tracks, but having an intended effect on your money. later, just hours after being arrested, the investor behind the $40 billion collapse of two crypto coins is charged in new york. it is friday, march 24th, 2023 and you are watching "worldwide exchange" here on cnbc. good morning. welcome to "worldwide exchange" on this friday. i'm frank holland. let's kickoff the hour with u.s. stock futures. looking at the u.s. stock futures. red across the board at this moment. the dow would open up 100 points lower. the nasdaq flat to fractionally higher.

something we will continue to watch this morning. selling picking up in the last hour as europe opened up and volume picked up. check out the action. we see the downturn here at 4:00 a.m. a six-hour chart. futures in the green at this point. then a turn as europe opened up. we will have much more on this later on in the hour. this after higher session yesterday. dow gaining more than 1% on the day. we show you the action here. bit of a choppy day here when it comes to the week. names like netflix and meta and alphabet slightly higher. then rough for financials and banks. zion and comerica and key corp down big. comerica down 8.5%.

wells fargo set to open at 52-week lows. bank of america down 30% and same for wells fargo. the bond market at 3.34 on the 2-year treasury. obviously we are well off the highs. at one point, 2-year treasury trading at 5% yields. let's get a check on the corporate stories with silvana henao. >> happy friday, frank. u.s. prosecutors are charging do kwon whose stablecoin crashed last year with fraud. kwon had been arrested in montenegro. in february, the s.e.c. accused kwon of fraud alleging he deceived investors and the token

setoff a wave in the crypto industry. brian armstrong taking to twitter to discuss the wells notice the company received this week. in the twitter conservationcons conversation, he stated it wasn't entirely unexpected. >> we answered every question and spent tens of millions on legal fees. explaining everything we could and they finally said we will schedule to come back. this is great. the first feedback we got in nine months. after 30 meetings, the day before, they canceled the meeting. we get hit with a wells notice. >> they cannot allow for

questions. citizens financial group is reported to make an offer for silicon valley bank according to reuters. the auction of svb private is handled by the fdic. the agecy has a deadline today. citizen financial is the largest regional bank, frank. >> silvana henao, thank you. turning attention back to the broader market as the wall street shifts back to the health of the banking system. fresh comments from janet yellen indicate further actions similar to rescue silicon valley bank could be deployed again if necessary. yellen's statement to the house yesterday conveying a different message from the remarks one day earlier when she told senators the treasury is not considering a plan to ensure all bank deposits without congressional approval. let's talk about more with your

money with ross mayfield. ross, great to you have here. >> thanks for having me on. >> confusion from janet yellen. we saw the 25 basis point hike on wednesday and banking crisis in recent weeks impact the economy and investing outlook. long term, now i think we have settled the situation with janet yellen, a few questions are left. how does this impact investing in the near term and long term for the rest of 2023? >> sure. typically when the fed hikes and hike this much, it ends with something breaking. whether the bank or international crisis related to a currency devaluation. from that point, the fed has to pivot. a pause or outright easing. we have seen this playbook the last 40 years. from that point, you enter a new stage against the fight of inflation or tightening. it becomes a good time to start thinking about getting risk on.

near term, you will see volatility. defensives might out perform as we head to the slowdown. longer term, this pivot from the fed has represented a good opportunity to get risk on. stocks have done well outside a few unique instances. >> a lot of people say risk on. let's spell out what it means. ark innovation etf invest? what is risk on in this environment? i don't think it is mega cap tech? they are not impacted by the banking volatility. >> no, they he are probably impacted with a tailwind to have the big rate drop which was a headwind in 2022. when i say risk on, i'm speaking broadly about owning equities and exposed to the market as opposed to fixed income or cash.

we have seen both take inflows over the last year. outside of the financial crisis and the dot-com bubble, these fed tightening cycles end in shocks is a good time to get in the market. it doesn't mean there is volatility in the near term. they are trying to stabilize the banking system and counteract. it is unlikely volatility is not in the future. we think longer term and we shifted away from inflation and focus on growth. the fed will probably shift policy in the near term and drop in yields confirms that. >> it is friday. we want to look at the glass half full. you know the fed will continue the battle against inflation and one more hike is coming up. we have seen volatility in the banking sector. a lot of people think it leads to loan tightening. is there any silver lining on to what we are seeing here? >> the silver lining we have

seen and we have seen over the past year and talking about the fed being a problem and the labor market is hot. this is something that should be celebrated. consumers are getting wage growth and finding jobs and switch jobs and garner wage growth. that is a huge asset. even as belt tightening occurs with inflation and economic slowdown and if you had the baseline confidence, it is hard for the consumer to crack. i think that the strength in the labor market and resiience is something to be celebrated. it is great for the consumer based economy that we operate in. >> ross, thank you for being here. >> thank you. turning attention to capitol hill with the five-hour hearing with tiktok and lawmakers with issues of national security and privacy. lawmakers appearing to not be swayed by anything they heard.

nbc's chris pollone is here from washington. chris. >> reporter: frank, happy friday to you. the ceo of tiktok and many of the content creators spent much of the week in washington trying to convince lawmakers that the chinese owned app is safe and secure. it appears those appeals did not resonate. >> this committee -- >> reporter: on capitol hill, a bipartisan barrage. >> what is your relationship with the communist party? >> you cannot protect the data of this committee or the 150 million users of your app. >> reporter: tiktok ceo shou trying to ease concerns the parent company bytedance could be forced to share data with the communist party. >> bytedance is not owned or the chinese company. it is a private company. >> reporter: storing all american data on american servers. the company has 7,000 u.s.

employees. >> congress member, i have seen no evidence that the chinese government has access to that data. they never asked us or provided it. >> i find that actually pre-pos pre-poster -- >> i don't believe anything said. >> reporter: users with built communities on tiktok and make money from it fear it could disappear in a flash. >> we can solve the issues without taking away something precious. >> reporter: lawmakers say the threats posed by tiktok are just one small part of the new world of data privacy and disinformation nightmares which won't be solved by banning one app. >> all social media companies and write legislation to deal with the issues instead of scapegoating tiktok. >> reporter: now 150 million american tiktok users watch and wait. after the hearing, tiktok issued a statement saying the day was dominated by political

grandstanding. frank. >> chris pollone in d.c. great to see you. happy friday. when we come back on "worldwide exchange," jack dorsey's block vowing to fight back as he sees his personal fortune shrink by$500 million. fortune shrink by$500 million. and later, a look at oil's power e*trade's easy-to-use tools like dynamic charting and risk-reward analysis help make trading feel effortless and its customizable scans with social sentiment help you find and unlock opportunities in the market with powerful, easy-to-use tools power e*trade makes complex trading easier

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welcome back to "worldwide exchange." we are watching shares of jack dorsey's block down 4% after shedding $6.5 billion in market value yesterday. this following a note announcing the payment company was the latest short position and alleging block allowed criminal activity to be on the platform. here with me now is mackenzie sigalos. are people concerned or some of the claims overblown? >> i think that is the consensus here. they are overblown. you have analysts saying it is oversold. it creates a near-term over

share and they are confident. bank of america is reiterating the buy rating. baird sees the stock as a good value. analysts at morningstar calling it anecdotal and key bank says it is nothing new to shareholders. frank, the allegations emerging from the two-year investigation from hindenberg is narrow. focusing on the cash app for illegitimate activity. this is the other case for p-to-p providers. now, there is the question raised by hindenberg if block was misreporting. the report alleing that block avoids a regulatory by routing through a small bank. lots of fintechs benefit by

partnering with institutions with less than $10 billion in assets to pull in more from interchange fees. >> there is the fact that hindenberg has skin in the game in the trade. are they shrugging off the allegations? >> that looks to be one factor at play here. hindenberg shorting the stock so they stood to do well if it plunged. when the stock was down 20% and short sellers made $400 million according to the analytics. we get the response from block on thursday saying it intends to work with the s.e.c. to explore legal action calling the report inaccurate and misleading. that is when we saw the share price pare back losses. we are down this morning. >> down 4% this morning. okay. this report got a lot of press and headlines. what is hindenberg's track

report with the reports? >> frank, it doesn't go well for the company targeted. adani lost $100 billion in a week after the hindenberg report about them and the india supreme court is running an investigation into the practices there. in 2018, it was nikola with the founder trevor milton charged by the s.e.c. for pushing a false and exaggerated narrative. he faces years in prison. pretty solid track record after a report from hindenberg. >> billions of dollars and somebody going to prison. mackenzie sigalos, thank you. mackenzie sigalos, thank you. coming up on

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welcome to a new era of flight. welcome back to "worldwide exchange." investors facing a bumpy ride this week with the comments from janet yellen injecting volatility. new data showing retail investor sentiment. caleb silver is joining us more with the survey. caleb great to see you. >> good to be with you, frank.

investors are caught in the middle. trying to figure out if this is the bottom here or what is happening with the banking and fed reserve is doing with interest rates. it brought up anxiety with the reader whose -- readers who are investors. there are obscure terms out there of what they are searching. >> i'll read off for you. minsky moment and a very easy to understand question. is my 401(k) insured? what is too big to fail? how does the fdic guarantee? what is a bank failure? give us a sense of what investor sentiment is out there? >> people are concerned if their money is safe, obviously. we heard the treasury back and forth on whether treasury will guarantee all deposits. what about your 401(k)? the sipc guarantees and backs up

the 401(k) up to $250,000. a different dynamic with the investment. everybody is concerned about the market and not just their investment, but money in general of the we track it through the anxiety index. reader traffic about personal finance and macro economy and about the markets. it is screaming like a toddler in the toy store when it is time to go home. they are not sure if the money is safe and if this market will wind up going down another 10% or 15%. the latest survey shows 40% of readers feel there is more downside ahead. >> more downside ahead in addition to what we have already seen. let's get specific. are you seeing people returning to the buy the dip or more of the wait and see? >> back and forth. we have readers of all ages. most are waiting it out. some are buying the dip.

some are people living on the edge and looking for opportunities when bank stocks were flushed last week. a lot were looking for bank etf. a lot of folks on the edge. i see what is happening with bitcoin. on the other hand, frank, you have the push/pull. $400 billion in money markets. $100 the billion in the last week. meanwhile, bitcoin is up 36% this year. the push/pull of people getting active and high yield savings accounts through the roof. >> $100 billion in money markets in the last week. caleb silver, thank you for being here. >> thanks. coming up on "worldwide exchange," helima croft is here with her take on oi'sl - double check that. eh, pretty good! (whistles) yeek. not cryin', are ya?

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it is 5:30 a.m. in the new york city area. we are just getting started on "worldwide exchange." investors looking to cap another rocky week of trading. futures right now in the red. credit suisse and ubs facing fresh scrutiny by the u.s. justice department and questions

with the swiss bank dealings with russia. we cap off the u.s. housing market looking for a reset as we dig in for the company's best position to weather headwinds. it is friday, march 24th. you are watching "worldwide exchange" here on cnbc. good morning. welcome back. happy friday. i'm frank holland. let's check on the markets and how it is shaping up today. we are looking at the futures in the red to flat. nasdaq went interest slightly flat to slightly green. down to the negative. the story is the dow jones industrial average. falling this morning. down 130 points at the open if we opened right now. s&p down .25%. let's check on the top stories with silvana henao who is back with those. good morning, silvana. >> good morning, frank. credit suisse and ubs facing

scrutiny from the u.s. government. the report adds some major u.s. banks are looked at as part of the probe which says it was hit before it was taken over by ubs. and according to the financial times, can executives pay at the silicon valley bank firm soared after betting on long bonds. before back firing, the ceo greg becker cash bonus peaked in 2021. double the amount four years earlier. the governor of utah signing two pieces of legislation aimed at regulating social media in the state.

you have to verify the age of anyone with a social media profile. utah is the first state in the united states to roll out the regulations, frank. >> silvana, thank you. let's see what is happening at home with overseas selling picking up. we have julianna tatelbaum with more from the london newsroom. >> frank, it has been a down beat session to end the week. we have seen selling accelerate in the last half hour. hefty losses across the region. cac 40 down 1.4%. italian stocks selling off sharply. it is the banks hit hard this morning. as silvana mentioned, credit suisse and ubs with the probe by the u.s. department of justice

to heavy oligarchs avoid sanctions. we are seeing heavy selling in deutsche bank. we come on to the banks in a minute, but the broader sector picture is red for the most part. the only sector that is trading in the green is food and beverage. the defensive part of the market along with health care and telecom and media. clearly investors are preferring those defenive names. banks selling off 3.5% overall. oil and gas down. the cyclicals are hit hard as it is a risk-off mood in europe. looking at the banks. this is the epicenter of the selling. deutsche bank shares off 9%. this after the cost of insuring against default shot up. deutsche bank is sharply in focus. it is not just deutsche bank, but all of the banks. ubs down 5%. investors clearly still nervous around the banking sector

despite the efforts by various authorities. european central bank and snb in switzerland asserting confidence in the banking sector. they are concerned that the credit suisse and ubs merger is not enough to contain the stress in the banking sector. frank. >> a lot of red on the board, julianna. thank you very much. turning attention to the oil market. prices are falling today following yesterday's losses and it may continue to sell in the equities market. the move coming a week before the next opec plus meeting on april 3rd. the group is sticking to at agreement to keep reducing output p. if wti and brent keep falling, will opec reverse course? let's bring in helima croft. helima, great to see you. >> thank you for having me on,

frank. >> we see wti below $70 a barrel. what does it mean? >> this is not unexpected. the white house indicated previously that they would commence buying back for the spr at $67 to$72 range. i think that is adding to the oil pressure. i don't think this was widely unexpected. the white house is in not looking to go this year. >> you came back from europe with a big gathering of the brightest minds with oil. we touched on brent. where is the forecast for brent? the forecast was up to $200 a barrel. it is at $75. has the forecast changed?

>> people were at the energy con -- conference. they were walking back the calls for brent. almost consensus of the back half of the year would be better based on chinese demand. they said at this price point, shale will struggle to hit growth target. there was optimism about the back half of the year. people talking about 90. you had one person selling 140. everyone conceded the next few weeks will be challenging for oil because of the macro concerns. you have demand issues and french refinery strike. there are the headwinds in the next few weeks and months. everyone thinks it will be a brighter second half. >> you talked about the macro concerns. we love to have you on. what is the biggest macro story?

the china reopening which is not going as planned? is it russia and that capacity taken off the market or is it iran and growing nuclear program and some of the other issues around that country? >> i think the market right now is so focused on rate hikes and the potential recession story and what is happening in the banking sector. i think for now they are parking the geopolitical risk story. we would say you don't want to take your eye off the iran story. chairman of the joint chiefs of staff general milley says iran could produce a nuclear weapon in a couple months time. we continue to highlight the risk by the iran nuclear advances. yes, they have done the deal with saudi arabia. the iran continuous march is an

underappreciated story. >> we are so glad to have you on. we will have to bring you back as we watch the oil story. helima croft, thank you. >> thank you, frank. coming up on "worldwide exchange," the finale of the spring home sales story. john lovallo of ubs is here with his picks. and the new york yankees topping the forbes list as the most valuable baseball team. an 18% increase from 2022. the dodgers and cubs and giants up in value between 6% and 18%. time is ticking for twitter. the company will remove check marks next month. users can get them back by signing up for twitter blue. and starbucks ceo is putting

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exchange." futures near session lows. we are seeing the s&p and dow down more than 1.5%. nasdaq is down .30% at this moment. we are looking at the biggest s&p pre-market laggards at this hour. some movement here in the market. we are seeing dish network down 1.5%. occidental down 1.5%. welcome back. we close the week look at the housing market. will higher mortgage rates remain elevated? not so for one region that just remains red hot. diana olick is joining us with more on the area that is bucking the broader trend. good morning. >> reporter: good morning, frank. we saw major migrations particularly to the sun belt. with back to work in full force, that migration has slowed and

some cities reversed. not in the most popular destination. miami. >> miami is becoming like new york and l.a. it has been difficult for the locals. >> reporter: many are helping their daughter and son-in-law to buy a house because it hasn't been easy. >> they go to a place and see 30 other people there. >> reporter: despite the winter chill in the country, miami's housing market stayed hot. pending sales soared over 140% month over month as more new listings came on the market. it is not enough to meet demand coming from out of state. >> 75% from up north. california or new york is where people are coming and buying. those buyers are typically buying cash. >> reporter: prices in the country are dropping, but prices

up 16% year over year. a recent index of prices from parcel labs shows with the jump in mortgage rates last fall, prices are gaining again. and buyers are pouring in. >> i don't want to jinx it. miami is one you make investment back. >> reporter: one caution. that was an open house for a single family home. condos are different. there is still a ton of condo construction. demand is falling because buyers are facing higher insurance costs passed on to associations with the condo collapse at surfside. >> that is something you don't think about. diana, you have done a great job all week. what is your biggest take? >> reporter: not particularly surprising, but we called this set to reset in the spring. the market is already in the

middle of resetting. the spring market is seeing more buyers than i expected to see. especially when we saw people going into new and existing homes separately and playing them off each other. there are headwinds and tailwinds. the headwind is mortgage rates. prices are easing up. people are coming into the market. we saw it in vegas. we also see a long road for home builders. we saw it in phoenix and from the data we got yesterday with demand coming in. they still have to start more homes to meet demand. >> diana olick, thank you. we appreciate it. we heard from the home builders and economists, but now it is time to make money. joining me now is ubs analyst john lovallo covering the home builders. thank you for being here. >> great to be here.

>> where are you seeing the biggest upside? the single family building or luxury homes or multifamily? where should you pay attention? >> we like the group at large. we think the position for the stocks is good. our bullish call is on the home builder. as diana was saying headwinds. the entry level first time segment of the market is the hottest and best place to be. that is a need based buyer. they will buy a home whether it means moving out in the city or doing whatever it takes. >> the hardest segment. you don't know anything and you don't have capital for a down payment. it is difficult. you mentioned bullish on the sector. you have a buy rating and bullish price target for 20 upside when it comes to the home builders. the exception, a company called

ndr. what is it about the business that makes it neutral to impact the other home builders you have a buy for? >> this is counterintuitive. thisis one of the best operators in the business. focused on entry level as well and first-time buyer. what gives us pause on the stock which is different from the company, is they are located in markets not as hot. mid-atlantic focused. i think there is a better opportunity geographically and valuation is rich relative to the group. it always deserves with execution. there are better opportunities within the group. >> let's talk building products. a lot of companies in the coverage area. is there one area with the upside with the pandemic? we saw do it yourself and contracting. a lot of people willing to invest in their home. we talk about the building products. what is the upside? >> the top of the group is

masko. it is a hedge in a way against our new construction focus or bullish view. masko focus repair products. if things are to slow, that consumer can get a lot of bang for their buck. >> you have a bullish price target on just about every home builder. is that thesis built on the idea that it might? we will see one more rate hike in may? if you listen to goldman sachs or jpmorgan chase, there will be one more rate hike. >> if you look at october and november with 7% interest rate, there was pull back. this time is less sticker shock. i think buyers are becoming more accustomed to a higher interest rate environment and they will make the math work to the extent they can. i think it is really a mentality issue that is becoming more

understood. >> you know, that is a general statement. i'm still seeing sticker shock. i can't make the math work. we talked about it. john lovallo, thank you. ahead on "worldwide exchange," keith lerner is here to tell us where he is putting his money to work. we are celebrating women's heritage sharing stories of women leaders and business. as we head to break, here is our own morgan brennan. >> when i was in my 20s in college, i shaved my head. after i did it, i was surprised to mourn the loss of my hair and what it meant for my identity as a woman. i embraced it and had fun with it, but it was a lesson in challenging society about what my life should look like. that is my advice to other women and everybody.

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welcome back to "worldwide exchange." time for the "wex wrap-up." shares of block under pressure in the pre-market after losing $6.5 billion in market value yesterday. this as the jack dorsey run company is defending against allegations of fraud from hindenberg research. hours after being arrested in montenegro, do kwon is charged with fraud over the crypto tokens.

not answering any questions, armstrong had 30 meetings with the s.e.c. in the last nine months. and workers reaching agreement to raise wages to $18 an hour at disney world this year. janet yellen on capitol hill saying the treasury department is ready to take emergency action to save bank depositors again if necessary. no mention of congressional approval this time around. citizen financial is working on a bid to buy silicon valley bank. the deadline for offers is today. gearing up for the trading day and we get durable goods and services and manufacturing pmi data. we are keeping an eye on the fed with james bullard set to speak at 9:30 a.m. the first comments from the fed leader since wednesday's rate

hike decision. checking on u.s. stock futures. we are in the red. we are seeing the nasdaq fall deeper in the red. dow as well. looking like it is the low of the early session down 225 points if it were to open right now. the s&p fractionally lower. you see the selling picking up in the past two hours. you see the line in the green. the s&p futures in the green early in the morning at 4:00 a.m. you see the turn to the downside and now at the 6:00 hour, we see the moves there. sharper moves in europe. banks getting hit hard. joining me now to talk about this is the german dax down 2%. cac 40 down 2% as well. italian ftse mib down 2%. joining me to discuss this is keith lerner. keith, the futures are taking a turn to the downside. what do you make of the turn as we approach the 6:00 hour?

>> great to be with you, frank, on this friday morning. our position remains defensive. we think what is happening here over the last few weeks is really reflection of the ones in a generation or most aggressive rate hikes we have seen in a generation. there are consequences to that. coming to this year, we were on a defensive front. we didn't know when or whether. we are starting to see that impact. in the u.s. markets yesterday, you saw the banks made a fresh low. they went below the low of a few weeks ago. that is important and in our view, negative. we are seeing that overseas as well this morning. the banks in europe are a big part of the index. if they are weak, it is hard to make traction. at this point, we look at the overall valuation for the market. trading around average valuation and now in our view, we see

above average risk for the market. we are still in that defensive mode. >> i want to run stats by you, keith. the fed worries investors to dive into money market funds according to data from the investment company institute. the second week in a row with the net inflows of more than $100 billion. let's look at the big number here. $117 billion this week. that is on top of the $120 billion in inflows last week. marking the highest inflows since march of 2020. what does that tell you about investor sentiment? >> it is fragile. we look at a big move into money markets as a contrarian indicator. we look across to the surveys across equity exposures being relatively high. part of that money market is realizing a lot of risk and

money markets still getting 4% yield at this point. that is likely to come down if the fed continues to cut rates. it is still attractive. from our overall position, frank, we are underweight equities. we used the rally in january to cut back equities. we are overweight in cash. we are keeping it simple and high quality bonds. again, this is not the time where it makes sense to take a lot of risk across the capital markets. >> let's ask more about that. you say you are overweight on bonds. short-term bonds? people are advocating for the short-term bonds. do you see value in the long-term bonds? >> the most important thing is to say we are in high credit. we have been using more of what we call a barbell approach for

fixed income for treasury issues. also, if the economy is going to slow down as we expect, you want to have longer duration bonds. ten years and over because if the economic slowdown and overall yields tend to come down and you look back at history, longer duration bonds out perform especially on total return basis. frank, what we are seeing is bonds have the inverse or buying yields relationship with stocks. that's the change from last year. a positive from asset allocation. >> keith lerner, thank you. a quick look at futures. red across the board. we are seeing the dow at the low of the session. down 250 points if it opened

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oh, boy. good morning. breaking news. deutsche bank shares plunging after a jump last night and the credit default swap. other banks under pressure. tiktok ceo grilled on capitol hill. we show you the exchange sparking fear about the user

data. crypto criminal caught bymo. it is friday, march 24th. it is friday. i didn't know. it is friday. "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 along with joe kernen. andrew is off this morning. so far, not looking too great. dow futures off 250. the nasdaq off 60. yesterday, stocks were mostly