weeks. nasdaq is leading those three indices up more than 2% so far this week. one stock helping to lead the dow higher in yesterday's session was walmart. that stock surging 7% to new record highs after seeing a strong earnings report. checking in on the bond market

as well with the ten-year hovering at its lowest level in roughly a march and it's ticking slightly higher this morning 4.385%. two-year note 4.782%. oil prices u.s. bench prices and wti prices continuing to hold below that 80 dollar per barrel mark and down 1.17% to $79.12. ice brent up to $83.62. with all of that in mind, let's see how europe is shaping up as its trading day is in the early stages and let's look at the early market action across the pond. >> good morning. if looking for a mixed market as mix as they come. stocks going in different directions. again, earnings news seems to be shifting things along and seen record highs for the overall

european market. even the market then out of the uk ftse 100 managed to reach record highs than in previous sessions but, yesterday, not doing too well and today following in that trend a third of a percent weaker and erpgs picture is looking towards that. numbers are coming out unpack those in a bit. smi out of switzerland up around two-thirds of a percent and because of a stock we will show you in a bit. overall, this is what is moving things along quite significantly. technology stocks have gone down 1% and construction material the big decline across europe so far. teleconis moving high on the back of bte sitting higher with banks a quarter of a percent to the good. i showed you the smi earlier moving high. swiss luxury group richemont is a reason for that uptick and 1% decline in fourth quarter sales and still in ahead of expectations in the market.

the company also announced the reestablishment of its ceo role that is appointing the current coo van cleef to that position. nearly 5% higher there. those are the moves across this friday of trade so far in europe today. >> thank you very much. back to the markets here on the u.s. shores. dow hitting the 40,000 mark in the way of that cooler than expected consumer price index report despite the slight progress on inflation and several fed officials yesterday making the case for higher interest rates until more indication that inflation is easing toward the central bank's 2% target. and blackrock rieder telling cnbc about the ding stocks could take if that were to happen. >> if we start to get numbers that show acceleration and service inflation, then yeah, it gets concerning and the equity mark could dip on the back side of it? for sure.

i think durability of your ability to generate return and the technicals will push the market higher. >> with that in mind janet is joining us head of market analysis of -- the state of play for inflation right now is one where everybody has to remain cautious but i wonder why traders and investors don't seem to be fazed at all about the threat that inflation could possibly pose in the coming months? >> thank you for having me. i think several reasons. i think we got the confirmation that inflation is actually okay is still heading in the right direction. i think the acceleration -- as long as we are not talking about a huge acceleration of -- i think that is fine. i think reasons why we are still optimistic that inflation will slow down. look at the rental market and leading indicators suggesting it will invest the biggest component on cpi and you got

a -- labor market and labor is slowing down nicely. and pc is slowing nicely. so i think the markets are still, in general, expecting, you know, over six months time inflation will be heading toward the two and also i will say historically, if we are 2 percentage point of inflation is actually a sweet spot for equities. as long as we don't get a big shock in inflation, i think markets are okay with that. >> a sweet spot for equities, what then takes us out of that sweet spot? what would have to happen? because there are not signs yet that anything on either end of the risk spectrum, either on the growth acceleration side or the recession side, seem to be anything close to playing out right now? >> well, i think in terms of the u.s. labor market, we are seeing more of a goldilocks play out.

of course, there are risks to that but the latest data suggests that thanks to immigration, we have got increased in labor supply and that tends to lead to eventually slower services inflation which everybody is concerned about. and, you know, job openings are falling. at the same time, you didn't get significant spike in the unemployment rate. so i think, overall, it tells you that we are kind of in that that sweet spot environment, at least for now. overall i think the markets are worried about like a sizeable acceleration that would be very bad. i would agree to that. but i think if we don't see, say, 2% inflation very quickly, i think as long as we are having roughly heading in the right direction, i think markets keep on rallying.

>> finally, janet, if those assumptions that you've laid out are all going to come to fruition hypothetically, how does one position the portfolio? is it stilted more towards equities? is there attractiveness right now within certain parts of the rates and credit space? how exactly do you balance all of that out? >> yeah. i got to say we look at the risk scenario and we have had patches in the portfolio that would protect us against, say, inflation shock. we think that an inflation shock would very likely be atr attributable to auto prices. we see the rating and worries on the rates and things like that and if we do see economic slow down and recession. we also think the high space is quite vulnerable because that is at high levels even for average rate or innovation.

we actually have sharp position in that component because we think of that scenario it would probably rise quite significantly. >> the credit markets could be vulnerable at certain parts. thank you, janet. see you soon. >> thanks. a check on this morning's top corporate stories. good friday morning to you. >> good friday morning, dom. good shares for reddit surging after announcing a new partnership with a.i. and shares up 14% and thil begin offering certain ai features to users and moderates powered by openai which previously announced a similar deal with google. house republicans delivering a rebuke to president biden on israel over his decision to pause shipments of weapons to that country.

lawmakers there passing a bill seeking to force that weapons transfer, the white house has said the president would veto the bill if it passes congress. the democratic led senate is expected to reject it. and shares of chinese property stocks surging on fresh intervention by the government there for the embattled sector. china's vice premiere announcing beijing will allow local government officials to buy some homes at, quote, reasonable prices to provide affordable housing. meanwhile the people's bank of china effectively scrapping the country's minimum mortgage interest rate while cutting the minimum down payment ratio for first time silvana henao, thanky much. a lot more to come including the one word vens tors have to know today. but first more on dow 40,000, stocks our next guest says can help your portfolio prosper.

plus shaking up the shipping industry. we talk to the ceo of one company looking to take trucking into the future. and later on, your morning's big money movers and one chip maker seeing shares get crunched on the back of earnings. we have a very busy hour still ahead.

welcome back. the annual cnbc disrupter 50

list is out. shining the spotlight on startups advancing break through technologies such as ai and autonomous vehicles. at number 19 on this year's list is the swedish based company that has been shaking up global trade in shipping for nearly a decade. just this week, they announced a partnership with dp world to start building what it aims to be the world's largest autonomous trucking network in dubai. joining us now is their founder and ceo. robert, this is a fascinating story because it takes us into the next generation of transportation. it may not be people, but it is goods. what exactly is so special about the story given everything that we've seen around ae ii in the t couple of years? >> great to be here. what we're trying to do with einride is shape the future and transports. biggest business opportunity for both ai and autonomous is

transport of goods. people love their cars. but when it comes to goods, it is an incredible business opportunity. and it will give us more sustainable and more competitive transport. and literally reshape the world. >> the leelectric trucks are something that we're somewhat familiar with here in the u.s. but for your company, it is about bringing some of the attention towards many other companies out there. we just talked about the partnership you guys have inked. who are your customers and how committed are they to this type of technology? >> our customers are the shippers, the people who want to transport goods, people who want access to digital electric and autonomous technology. we have -- our biggest market is actually the u.s. you have great customers like appliances in the u.s. and for us it is about dedicating and giving them a competitive pricing.

and quality services. and our commitment for our clients is huge. and this is not driven by -- one of the grade side effects is that it is driven by access to technology and long term cost competitive transport. >> commercial evs are just the first step for you guys. how much does autonomous trucking factor in and how do you prepare for that and fund for it, what kind of rmd and money has to be spent to make autonomous trucking a reality in say the next five to ten years? >> for me it is already a reality. we are in north america and europe and this is a gradual change. it will be driven by the business case itself. it is about finding scaleable models and that is why they are focusing and working closely with the customers. but when others have been

focusing on the rmd aspects of this future technology, we've been focusing on taking a graul approach working with real commercial use cases and taking increasing complexity on when it comes to autonomous. bottom line, this will be driven by the business case and the business underlying if it can have a good market fit. and that is what has been number one. now we can do the rmd, commercial applications because we have the demand, we have the customers and also the investors for it. >> robert, thank you very much and we'll see you again tonight, sir. >> thank you. and you can see the full disrupter list for cnbc on cnbc.com. head there to see some of the world's most propping private companies. still ahead here, show me the money. the companies that could still be in the race for billions from the chips act funds still up for grabs.

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glp-1 drugs used in weight loss treatments are a global blockbuster, even with unliked and inconvenient injections. more human study results for lexarias patented oral delivery technology are coming soon. lexaria bioscience. welcome back to "worldwide exchange." time for your big money movers. take two interactive is under pressure down by 2.5% as they say grand theft auto 6 will not be released until the fall of next year. take two is also reporting fourth quarter results that beat estimates but cutting the booking forecasts for the coming

fiscal year. cracker barrel is foulllowi as they say third and fourth quarter results are below forecasts. the company plans to invest hundreds of millions of dollars in overhauling its restaurant chain and updating its overall brand. shares down 11% in extended action. and shares of applied materials are lower despite reporting better than expected second quarter results. the chip equipment maker forecasting third quarter numbers above estimates but it failed to meet investors' hire expectations. applied materials making the stuff that make computer chip, down 1% in pre-market. let's stick with that theme. hundreds of companies are still vying for a piece in the chip act funding. megan, where will we see the remaining money going? >> that's right, there is just about $6 billion left to dole

out. some $33 million has already been allocating mostly to intel and samsung and congress has set aside $500 million for what is left for the smaller supply chain companies. mike schmidt tells us that the focus for the remaining funds is going to be on sending smaller awards to dozens of smaller companies. some will be legacy chip makes and others will be all along the supply chain. so the goal now is to provide grants for equipment and material suppliers on one end, all the way to packaging facilities on the other end. commerce hopes this will make production more sustainable over the long term. >> once we begin to rebuild the scale that we expect to see in this country, i think that that will create ongoing investment dynamics and continue to make it attractive for companies to invest in the future. >> one company competing is iqe,

a uk based company that produces what is called compound semiconductor wafers for companies like apple. he says it is crucial to fund the materials that help the chips work. >> so compounding is the core of the infrastructure. without compound, there is no smartphones. without compound, there is no 5g. without compound is no ai. >> and experts say funding is key it supplying a u.s. supply chain that can actually last. so is thatthat is one factor at. >> and the final stretch here. besides iqe, if these smaller awards will be doled out, will we know the companies left getting the money and who is in the running to actually get some of this money besides iqe and the names we haven't heard of

yet? >> right. i've been talking with sources about this, i think that we'll have heard of some of the companies. i mean, texas instruments is sort of more of a legacy chip maker making those analog chips. they are liking to get an award. you mentioned applied materials before this, and they are in the running to probably get an award as a supplier. they are being talked about global wafers is another one of those big suppliers, apparently there is a lot of interest there. so making a similar type there. and analog devices is another chip maker like texas instruments. other than that, those are some that maybe not be familiar names, but beyond that, would he like lig ly to get into smaller companies we haven't heard of and we'll be watching them. >> megan, thank you. and now a check of shares on hong kong trading after a

bloomberg report that hsbc largest shareholder is weighing its options to reduce its 8% stake in that lender. r ara sla similato tde revealed last week. frgs imilar to a trade revealed last week. frgs

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york area and still a lot here on "worldwide exchange." here is what is still on deck. the dow looking to recapture the 40,000 mark after crossing the mile ste stone for the first time ever. but pressure to get back there. and we're digging into the moves to capitalize on the next leg higher. the stocks our next guest says your portfolio can use to cash in. and copper prices are spiking to their own record levels, but big bets by short sellers are potentially setting up a metals metaldown. it is friday, may 17, you are watching "worldwide exchange." welcome back. i'm dominic chu in for frank holland. let's pick up the big story of

the morning which is the dow a whisker away from the 40,000 mark, althoughthe average did take out the milestone before closing lower in yesterday's session. in all it took the dow about 3 1/2 years to go from the 30,000 mark to the 40,000 mark. as you can see there in the time line. and in that frame, four dow components have doubled in value. that includes the likes of american express and goldman sachs, 103% gains and 107% gains there. and also caterpillar and michael. microsoft. and so four doubling in value in that span. let's see where we stand with futures. dow implied slightly lower. down about 8 points. relatively unchanged. s&p down about one and nasdaq by nine. the dow not the only in-ddex

hitting fresh records. our bob pisani has more on what is driving the rally and if the momentum can hold. >> now that the s&p 500 and most major indices are at or near historic high, you can expect the wrath of earnings and year end price target revisions from wall street strategists to be coming very soon. why? because new highs tend to beget more new highs. first up was bmo who raised s&p target to 5600 from 5100 for the end of the year. the high estimate right now. but it is a lot more than just about figuring out momentum. to put it simply, the markets are sniffing out higher earnings and lower rates. first earnings are rising. that is the most important thing. estimates for the second quarter for the s&p are expected to be up 10.6% from the same period last year. that is higher than a month ago and a few months ago as well.

that is important because estimates usually decline as the quarter goes on because analysts are usually overoptimistic. but not this time. earnings for the rest of the year have been remarkably stable. but the key point is that each quarter theestimates are higher and in fact the numbers are record for the s&p 500 for the second, third and fourth quarter estimates. second, volatility is measured by the cboe volatility index. stri vix is at the lowest of the of the year. and finally bret is remarkable. mostly waited toward market capitalization, but when more stocks are advancing than declining on a regular basis, almost on a daily basis, for weeks on end, that is what makes for great rallies. and that is exactly what is happening right across the board. big cap, small cap, it doesn't matter. more are advancing than declining by a wide margin in

the last several weeks. back to you, dom. >> thank you very much, bob pisani. the key question for a lot of investors now is with stocks at or near record highs, what comes next and how do you need to position your portfolio. or reposition it. joining me now with how to invest from here is the chief investment officer and senior portfolio manager at northstar as asset management. this is interesting. we have cashinterest rates in the 4% for 5% range. stock markets at record highs. if you have any excess capital capacity invested or not, you are making money. can this continue? >> we fell our investors to take a 5 to 10 year view. we expect a lot of volatility. we came in q1 pretty strong, selloff in april and now a rebound. take a five to ten year view and in the meantime enjoy the ride.

>> enjoy the ride is something a lot of folks are doing. people may not be actively looking at their 401(k) balances but they might be surprised if they see what is happening there now. bob pisani reported that it begets more record highs. do you need to be thinking about taking money off the table? >> we system aatically say we wt to be owning stocks exposed to long term structural forces so they are not dependent on an economic environment to thrive and grow and deliver the earnings. that is the approach we take. within that, absolutely. stocks that have continued to outperform we trim them back and put them back in the stocks that have been laggards in this rally that we've seen here. >> you can take us through the story for us from a portfolio manager standpoint, where are you trimming in your portfolios and what are you rotating into given this market? >> yes, we have been trimming

some of the mega cap stocks, the technology stocks that have benefitted from the whole avi euphoria that we've seen here. we've taken some of the trends there, we've taken some of the industrials that have done well, we've trimmed back those. and then where we're adding is again where we think these are all weather stocks. like a tgx which is like i said a company that thrives in all environments. it continues to take market share away from market stores. but in an environment where a consumer is looking for better value, there is no better place than tjx type of a company. so that stock is a great place to be. another one we like is sprouts farmers market. they have about 400 stores in 23 markets looking to continue to expand. they just had a q1, hosted 9% sales increase.

and continue to increase their margin and so forlts. so again, very nice solid company. and then the last one i would point to is a come like danaher. they supply diagnostics, consumables to life sciences and diagnostics industry. pure play. a last couple years it has been a flattish stock. but longer term we continue to see a lot of demand for drug development and discovery, development of new biologics over time. so those would be the kind of areas where we would be putting money in. >> all right. tjx, strprouts farmer and dan ia here. thank you very much. and for more on the dow 40,000 mark, head to cnbc.com/pro. there are is look at several

stocks that look cheap and could have more room to run. pro subscribers get the full analysis there. now a check of the top corporate stories. >> good morning. well, we have another shakeup coming for spirit a aero system. they are laying off up to 450 employees because of slower delivery. that is largely due to recent turmoil at boeing which has seen a decline inned ned orders in t past year. and fda approving amgen therapy for a cancer drug. this is a second or later line treatment. meaning patients can take it if their cancer progresses while on or after trying another form of treatment. amgen says it will continue pursuing other studies that could allow the drug to be used

as a first line treatment. and reuters says shanghai d not have security assessments. companies such as tesla have been lobbying china to allow cross border sharing of information after beijing first tie-in data controls in 2022. >> thank you very much. and coming up, copper conundrum. risks around the metals rapid rise and whether a meltdown could spill over in on broader markets.

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so you can rise from pain. icy hot. welcome back to "worldwide exchange." turning to the commodities complex and specifically copper. prices for the metal here in the u.s. hovering near all-time highs crossing above the $5 mark earlier this week. u.s. prices have surged to a record premium over the global benchmark in london as speculative funds pile in and traders are forced to cover short bets on some of the world's most important memgtss c metals copper being one of them. cocoa also closing sharply lower yesterday.s metals copper being one of them. cocoa also closing sharply lower yesterday. metals copper being one of them. cocoa also closing sharply lower yesterday. the moves are amplified with a l lackly liquidity with interest

lowest in over a decade. let's bring in head of global research at b of a securities. francisco, you've been dealing with these kinds of markets for years now and the volatility. can you take us through what is surprising if anything about the copper and cocoa moves? >> sure. i think first of all if you look at the complex broadly, in-diseases areup around 7% year to date. and so clearly we've seen falling the meltdown in oil prices at the end of december with the opec meeting going wrong, we've seen the commodities pushing higher. and now the macro data is looking more positive generally. we're seeing better data out of europe and china and better

inflation prints in the u.s. so i think that people are starting to get more constructive generally, investors more constructive on the outlook. obviously copper is the biggest choke point across the major commodities because the supply side is very challenged and we have growth rates potentially averaging 4% on a forward basis. so it will be hard to meet those expected demand growth rates. and cocoa is a bit of a different story. it is also supply driven. also long cycle commodity. but i would protect separate between the commodities that have a very challenging supply side, basically low price to supply and those commodities that are relatively easy to fix where we can bring volumes back to meet incremental consumption. >> and there is also the idea of the disjoint -- not disjoint.

there is a building spread between where copper is trading here in the u.s. and where it is trading globally. you've laid out where it could be subject to the price action. what is driving the difference between where lme metals are trading, copper specifically, and what is happening here in the u.s. and domestic shores? >> well, a lot of it has to with inventories on different parts of the atlantic. remember that at the end of the day, the future exchanges have inventories backing them out. and we've also imposed restrictions on metal that originates from places like russia on sanctions. and so there is challenges like that. for instance like how are you going to fix it by moving more material from europe and from other parts of the world into the u.s. and i think the physical trading houses will do that.

but it is a very unusual move to your point that we have a 10% differential between the u.s. price and the longer price. and like i said, physically that will be fixed because at the end of the day, all it takes is a vessel and a few weeks on the high seas to get the copper there. but it is already pulling up the prices in europe. we've seen the short squeeze in north america but also the uplift in other markets. that is the price action in recent days. so we're concerned about exponential or nonlinear moves in copper. we have a $12,000 target for the next months and we think that things are happening maybe a little faster than we expected here. >> sure. of course leveraged markets like

futures always are is unit to some of that volatility as well. francisco, always a pleasure. have a nice weekend. coming up, shares of reddit are taking off as they announce a new partnership. and cnbc is celebrating asian-american native hawaiian and pacific islander heritage month. and here is deidre bosa with a look at the group's influence. >> asian-americans own an estimated 3 million businesses in the united states while native hawaiians and pacific islanders own nearly 90,000. collectively the group employs close to 5 million workers. u.s. small business administration says that is just under $200 billion a year paid to their workforces.

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welcome back to "worldwide exchange." time for your global briefing. shares of property stocks in china are surging after the country said it will allow government officials to buy homes at quote/unquote reason al prices. the vice premiere says the central bank will remove the floor on interest rates for the first and second homes market. the housing market has slumped in recent years following a

track r crackdown on excessive borrowing. and retail sales are rising 2.3% in april, down from march. industrial activity offering some hope though growing 6.7% that topped expectations also up from 4.5% over the course of the last month. and then shares of richemont even after a decline in four quarter sales. they say demanding comps and geopolitical uncertainty is the reason. and still ahead on the show, the one word that could define the trading day ahead. but first, looking to recapture the 40,000 mark, what will it take for the index, the dow, to take it back over the milestone and what could power the next rally phase if there is one. 'lbeig bk.

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welcome back. time for your wex wrap-up. shares of reddit are soaring after they say they are teaming up with openai. as part of the deal reddit will offer certain features which will become a partner.

house republicans voting to send weapons to israel against president biden's call to delay bomb shipments. lawmakers have divided over policies since the war began last october. with republicans accusing president biden of turning his back on israel. take two interactive shares are lower after they cut bookings forecast to reflect the new launched timing for grand theft auto 6. currently working to cut costs by laying off 5% of its workforce and scrapping several projects currently in development. applied materials reporting send quartecond quarter revenued buying back shares. they expect revenues to hit the mid point of its range thanks to revenue and clean energy demand. and bloomberg reporting that one stream has filed for an initial public offering that could come within a few honesties. the software company backed by kkr since 2019 is seeking a valuation up to $6 billion based

on an annual revenue above $450 million. turning back now to the markets, if at first you don't succeed, try, try again. the dow briefly topping 40,000 for the first time ever during yesterday's session before investors hit pause on this week's rally that saw the major averages all close at record highs on wednesday. for more, let's bring in david katz from matrix asset advisers. david, dow 40,000. a lot of people say it is not a great measure of the overall market, s&p and nasdaq are berks but dow 40,000 is still a big level. record highs across the board. should investors think about taking money off the table? >> i think you want to take a longer term perspective. and if you think that longer term perspective stocks will be a very good place to be the next three to five years. but importantly they will be a good place to be over the balance of this year.

however, this would not be the time to jump in with new money. i think we're probably at the higher end of a short term trading range. you probably have 3% to 5% up side, 5% to 7% down side, at some point the market will pull back again. but we think the fundamentals for this year are good, we think interest rates ultimately go lower. corporations are doing well. fumndamentals are good. so good environment to stocks, but don't get caught up in the mania of this moment. >> let's take us through your word of the day. >> so the word of the day is breathing. the market has been on a tear and we think it slowed down a little bit yesterday and probably will slow us down again today. we think the word of the month is probably buoyant which the market has been focusing on the good and ignoring the bad. and that typically is a sign you don't want to get caught up in the excitement. again there are a lot of places in the market that haven't done

as well. we think the market will start to broaden out and things that didn't do as well will start to catch up. so we wouldn't chase the winners. >> so if you don't chase the winners and you don't want to put new money in the marketplace, if you were to look at some parts of the market that might become attractive to you on any kind of a pullback, what would they be? >> so we think health care has done poorly the last 12 months. we think that probably will be a better place to be. utilities have started to to well. we think that will have some legs. we think financials which also have been perking up will continue to spread out. we like select technology. but beyond the macro sector look in terms of places we like small cap which have not done nearly as well. we like international. dividend stocks have been a particularly poor laggard. we think that is a good place to be. we like value versus growth. and then you want to look at individual stocks. this was a very odd earnings

season. companies that made numbers did okay. companies that missed got rocked. we think that you can look at the recent losers as a place make money the next 12 months and there are a lot. cisco had a pretty good number yesterday. closed down a dollar. we think it is very well positioned. you get a 3% plus dividends while you wait. we'd weigbuy into that weakness others like that. >> so if it is just cisco, you mentioned other value parts of the market, other stocks that you like as well? >> sure. again, companies that did well in the earnings season but the market didn't look like a paypal or zimmer. stocks are reasonable valuations. we think that is a great place to make money. we could see paypal which has new management and turned themselves around, we could see that 30% to 50% hire gher the n

twem 12 months. one company that did poorly is starbucks. but we think that is a great product. you want to get in how while they have problems. they will fix the problems the next 12 months. so we think the stock easily could be back over 100. >> david ckatz, thank you very much. have a nice weekend. and "squawk box" picks up the coverage coming up next. good morning. stock futures relatively flat. and overnight, beijing announcing its most aggressive action yet in the struggling real estate market. and cracker barrel planning a brand overhaul. it is slashing its dividend to pay for it. it is friday, may 17, 2024, "squawk box" begins right now.

good morning, everybody. welcome to "squawk box" here on cnbc. we're live from the nasdaq market site. i'm becky quick along with joe kernen and andrew ross sorkin. it is friday. made it here. and right now you won't see a lot of movement in the u.s. equity futures, but that is because of the big moves that we saw yesterday. no surprise after the dow crossed the 40,000 mark yesterday before closing below that. it took the dow about 3 1/2 years to go from 30,000 to 40,000. so that is making pretty decent time. in that time four dow components have doubled. american express, goldman sachs, caterpillar and microsoft. we're also looking at the other major averages with new highs as we