Shares Surging, Rally Keeps Rolling, Tariff Carve-out Coming? 4/25/25
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Because with all you've done to find your rich, we'll do all we can to help you keep enjoying it. Edward Jones, member SIPC. I'm Frank Holland, and you're listening to CNBC's Worldwide Exchange. Our show is live weekdays at 5 a.m. Eastern. Listen in. Alphabet takes off after its earnings show. The tech giant remains in a strong position. That's lifting futures this morning as Wall Street looks to keep its rally rolling.

And word of possible easing of U.S.-China trade tensions with a report that Beijing is weighing fresh tariff carve-outs. It's Friday, April the 25th, 2025, and this is Worldwide Exchange on CNBC. Good morning. Thanks so much for being here with us. I am Frank Holland. We're going to have much more on Alphabet's results throughout the hour and why Wedbush's Joel Kalina, he's calling this stock a cheap defensive hiding place. You can see Alphabet shares up over 5%. We're going to get to that in just a moment. But we begin with U.S. futures and the major indices. They're on a three-day win streak.

Take a look at this morning. Futures in the green across the board. Taking a look right now. The S&P and the Nasdaq both up just under a half a percent. The Dow up, well, it was up fractionally right now, pulling back very fractionally right now, but essentially flat in the pre-market. We want to take a look at the S&P 500 pre-market leaders first right now.

Taking a look, as we mentioned, Alphabet right here at the top of the list. Shares up over 5% following earnings. We are going to dig into that in just a moment. Also, Tractor Supply, Meta Platforms, Church & Dwight, and also Supermicro rounding out the best performers. We're going to talk more about social media and staples in a moment as well. We're going to look at the laggards on the S&P as well this morning. Taking a look at those, you can see Intel coming off earnings, the worst performer in the S&P. T-Mobile, Charter Communications, Gilead Sciences, and Nucor rounding out your worst performers on the S&P in the pre-market.

Checking mega cap tech stocks on the back of those alphabet earnings, giving for the most part that group a boost right now. Apple, the exception, obviously pulling back about a quarter of a percent in the pre-market. But meta platforms up, Microsoft up, Amazon up over one and a half percent, NVIDIA up just a tick over one percent as well. As we mentioned, a number of social media stocks also rising on the back of Alphabet's results. Taking a look at those.

You're seeing Reddit shares up just about 5%. Pinterest, similar story. Snap shares up over 2.5% right now in the pre-market. We'll look at Staples as well. Very different story when it comes to Staples. Kimberly-Clark and Procter & Gamble facing their worst week since 2022. Pepsi and Church and Dwight facing their worst week since 2023. You can see the moves right here, week to date.

Big pullbacks across this group. We actually had Amy Wu Silverman on our show earlier this week warning that the Staples trade, it may not be as defensive as many people think. They actually were expecting to see some guidance reductions, and that is what happened. And you see the stock moves right here week to date for Staples.

We also look at the ETFs that track China as the dispute over tariffs and trade that just continues. So this morning, Bloomberg reporting China may suspend tariffs on some U.S. goods, including medical equipment and industrial chemicals. The apparent move coming, as President Trump said, there are talks underway. However, China is disputing that. Our unit is going to have much more coming up just a bit in the show. Taking a look, though, at China ETFs right now, you're seeing the FXI pull back just about three quarters of one percent. Inverse move for the MCHI.

Up just about three quarters of 1%. The K-Web pulling back about three quarters of 1%. This one down here is very interesting. The S&P China up just over a third of a percent. So very mixed reaction. We're looking at Chinese equities this morning. Quick check of the dollar. We've been talking a lot about that sell America trade and the moves in the dollar. Right now, the dollar up just about a quarter of 1%. You can see here, week to date, the dollar up about a quarter of a percent as well.

And we'll take a quick look at bonds as well. Yields just ticking back just a bit. The benchmark coming in at 4.29, just a few basis points lower than the level that we saw yesterday. All right, Tom, now for your big money movers as well. There's some big stock stories this morning. We're going to go back to Intel. Those shares we just mentioned, they're falling.

as the chipmaker posted a first quarter loss and gave some weak revenue guidance. Shares down just about 6% right now. The company also cutting its CapEx by $2 billion this year and expenses by a half a billion. In a letter to employees, the new CEO says layoffs will begin this quarter, but didn't say how many people would be affected. Again, shares of Intel, they're pulling back almost 6%.

Gilead Sciences reporting a first quarter profit, but revenue was flat as sales of cancer drugs slowed offset growth in treatments for HIV and liver disease. The company says its HIV prevention drug is on track for FDA approval by mid-June. Shares of Gilead pulling back almost 4%. And we're taking a quick check of shares of Skechers. They're dropping as the footwear maker, uh,

First quarter sales misforecast and it pulled its guidance for the year, citing some uncertainty from the global trade war like a lot of other companies are. In its most recent annual report, Skechers said most of its sales from last year came from shoes made in China and Vietnam. Shares of Skechers pulling back more than 6%. All right, time now to go global. Let's see how the global markets are closing out this trading week. Juliana Tattlebaum is in London with a look at all that. Juliana, good morning.

Hey, Frank. Good morning. Well, overnight in Asia, it ended up being a fairly positive session. All of the major regions moving to the upside. The Nikkei 225 gaining about 1.9 percent. The Hang Seng gaining about 0.3 percent. A little bit of a pullback in the Shanghai composite in mainland China. This, despite the

fact that China is reportedly considering suspending its 125% tariff on some U.S. imports with additional levies on medical equipment and some industrial chemicals on the chopping block. That's according to Bloomberg, which says officials are also looking at waiving the tariff for plane leases. So a developing story to watch. Frank, you alluded to it in the open. In terms of European market action, we're also seeing that positive momentum filter into the European trading session. We are up a

Across the board, the Zetra DAX up about half a percent, the CAC 40 up about seven tenths of a percent. This is adding to yesterday's modest advance for the stock 600. We did not rally the same magnitude that you saw stateside. So, yes, things are positive here, but not quite as much as you're seeing over on Wall Street, Frank.

Juliana, thank you very much. Juliana Tattlebaum, live in London. All right, let's talk more about the markets now with the major averages on track for a weekly gain in the dollar set for its first rise in about a month. Joining me now is Shana Sissel, founder and CEO of Bannery and Capital Management. Good morning. Thanks for joining us this morning.

Good morning. All right. I think we ought to start off with Alphabet. Big upside move after earnings. A lot of people feel like this is reaccelerating the tech trade. However, there's still a lot of issues out here with tariff and trade. And these companies are certainly growth sensitive. What's your take on tech right now this morning?

Well, I think, again, as you said, there's sensitivity to the tariffs. I think for something like Alphabet or Meta, maybe not as impacted as, say, an NVIDIA and some of the other chip companies where it directly impacts their

their supply chain. But it is worth noting that while Google had great earnings and raised their dividend and had fairly positive guidance, they did see some drop off in e-commerce. And then if you want to think big picture and you want to think AI and that trend that has really been the key driver of technology, still talking about ways in which they can monetize AI

Still looking at potential cannibalization of their advertising business, which was a key driver of their earnings this past quarter. So, you know, still question marks for sure. All right. A lot of question marks. Another area I want to talk to you about are consumer staples. So a consumer staple is actually the only sector that's negative week to date. We actually had a guest on earlier this week, Amy Silverman from RBC, telling us that consumer

The options market was showing some warning signs when it comes to staples, and then actually they were expecting to see some guidance cuts. Again, week-to-date looking at staples down 1%. We just hit this a short time ago. Church and Dwight and Pepsi having their worst week since 2023. Kimberly-Clark and Procter & Gamble having their worst week since 2022. What do you make of this so-called defensive trade turning so bad?

Well, I mean, it makes sense if you think about the way that the momentum of the market has swung in the last week. It's an indicator that potentially this concern about recession and potential economic downturn might be a little too aggressive in that sense. So I

I wouldn't take this as much of a point right now because if we are going to see any slowdown economically from tariffs, where consumers tend to cut back is not in staples.

Those tend to be the types of companies and the types of consumer goods that people will not cut back on. However, something like a Pepsi, you know, if you think about there are some unusual economic indicators, there's something called like the snack indicator, where during tough times, people tend to cut back on their snacks in favor of snacks.

other types of more important aspects of nutrition. So, you know, there's something to think about there. But I would just say that this is a reflection of the momentum swing we've seen in the market. The outlook, of course, is concerning because you want to know kind of how people are thinking about it. And tariffs do impact staples. You know, while we're talking about the broader market and sentiment right now, JP Morgan came out with a note. Dubrovka, LACO has come out with a note. I'm going to just read part of it to you.

He says, in part, the sentiment is very bearish, especially within the macro community. Most are disregarding the latest trade developments, in part due to what he calls Trump exhaustion. We observe that many prefer to stay in cash and maintain lower leverage in their books. What does that mean in the market if people right now are staying in cash, whether that's money markets or short-term bonds, whichever way you want to describe cash?

What does it mean that all that money is on the sidelines? Is that actually good for the equity market longer term because there's a potential for it to pop back in the market and kind of push things higher? Or is it a concerning sign of bearishness that people want to get out?

Well, you know, a couple of things you look for as a potential trigger for a change in sentiment is the fact that there's sort of a contrarian sentiment, right? We've seen a lot of retail buying the dip because there's like an entire generation that has learned to buy the dip because more times than not, the market has turned around pretty quickly. So you kind of want to see retail money on the side.

as a contrarian indicator. And as you pointed out that actually can be really good. A way to drive the markets higher.

in a really quick way in the future. You kind of want to see this as a way of potentially indicating a bottom. But at the same time, I think one of the things you did talk about was this idea of Trump exhaustion. I think that's really the concern for investors as to how long somebody might stay in cash. You know, we've seen such changes in policy, especially as it relates to the tariffs.

And it looks like things are calming down. But I think because of the whipsawing effect that we've seen and just the announcements of policy changes, investors are going to be cautious to jump in too quickly. So I think we might see cash stay on the sideline a little bit longer, which for me means that maybe we have not seen enough change to indicate that any market gains that we're seeing right now are sustainable.

I think a lot of people are hoping things calm down quite a bit. Shana Sissel, great to see you. Thank you very much. Thank you. All right, a lot more to come here on Worldwide Exchange, including the one word that investors have to hear today and the stock pick that every investor needs to know. But first, much more on the trade talks between the U.S. and China. As President Xi, he takes new steps to protect companies there. We're live in Beijing with the very latest on that story. Plus, we get the American take on tariffs from the CEO of Snap-on.

The trade war is impacting his customers' purchasing plans. And then later in the show, Apple reportedly making a bigger push to scale back, relying on China for one of its top products. A very busy hour still ahead when Worldwide Exchange returns. Stay with us.

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U.S. international assistance protects our interests at home and abroad. If America doesn't lead, China will.

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And welcome back to Worldwide Exchange. Let's get a check on some of this morning's top stories. Silvana Henao is here with those. Silvana, happy Friday and good morning. Hey, Frank. Happy Friday indeed. Good morning. The Financial Times is reporting that Apple plans to shift the assembly of its U.S. sold iPhones from India as the tech giant looks to continuing shifting away from relying on China.

now the ft says that could happen as soon as next year meanwhile bloomberg is reporting that apple is removing its secret robotics unit from under the watch of its ai chief and putting it under its hardware division the apparent move would be the second major product moved out

from the AI unit as the company faces struggles around that technology. Shares of Apple just fractionally lower in the pre-market. Meta carrying out a fresh round of layoffs, the unspecified number of job cuts coming in the company's Reality Labs division that's focused on developing virtual reality, augmented reality, and related wearable devices. Now, the cuts...

come ahead of Meta's latest earnings, which will be released on Wednesday. Shares of Meta up about 3.5% in the pre-market. And the Trump administration is relaxing rules to help U.S. automakers like Tesla develop self-driving cars in a push to compete with Chinese rivals. The Transportation Department

announcing the companies will be exempt from certain safety regulations for testing purposes. Tesla CEO Elon Musk confirming the company's earnings call. The company will start rolling out self-driving Tesla taxis in Austin, Texas in June, Frank.

All right, so Mana, thank you very much. Taking a look at Tesla shares, they're up just about 1.5% right now. All right, still on deck here at Worldwide Exchange, the CEO of Snap-on is standing by. We're going to get his take on tariffs, customer demand, and the overall view on the American economy. That's coming up next.

The U.S. and China are competing for global leadership. The country who wins will define the world we live in. U.S. international assistance is vital to our national security. It helps prevent terrorism and avoid costly wars. It fights diseases and saves lives. It helps keep America as the number one economy in the world.

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And welcome back to Worldwide Exchange. Take a look at U.S. futures right now. You can see the S&P and the Nasdaq fractionally higher, the Dow pulling back fractionally lower. The S&P and the Nasdaq off of their highs of earlier this morning. This morning, we're also watching shares a snap on. The stock regaining some ground this week after up nearly 2% after tumbling on the back of earnings late last week. The company facing some softness in its tools group segment as tariffs and other economic uncertainties hang over customers and their decisions on purchasing new tools. For much more, let's bring in Nick Pinchuk.

CEO, chairman and president of Snap-on right here in studio. Nick, great to have you. Good to see you, Frank. Good to see you in person. It's good to have you here in person. All right, why don't we start off here? I know, let's just get this out the way. You make about 80% of your tools sold in the U.S. here in the U.S. Correct. So you're saying tariffs aren't a big impact on your individual business. You also produce in other countries where you sell. What about your customers? How are tariffs impacting? Well,

customers. Tariffs are not specifically, but it's a general uncertainty. Generally, through last year, they started to get more uncertain. You remember, these are grassroots people at the garage level. They don't have a lot of cushion, you know, in terms of their financials, but they're pretty good. They keep their families warm and safe and dry. So last year, the whole idea of the two hot wars, the Houthis, the tick,

with China and other things, got them uncertain. And then when we rolled into this year, even though they're kind of agreeing with where the president is going in general, they're worried, almost like a Space Mountain thing. They're going left and right. They're going to go off the rails. They're worried about it. So uncertainty rose. And so what happens is they pull back from buying things they might have to finance.

They want to be willing to pay for things they can get, in our case, get done in 15 weeks, pay off in 15 weeks, but two or three years. And that's about a third of our business. So that tends to compress it a little bit. All right. One bright spot in your earnings was repair systems of information. Revenue grew about 4 percent. Yeah. Well over what we saw a year ago. That's where come back.

mechanics and other people, they repair cars, they repair other things. I would think that tariffs would actually be good for this segment of your business because hypothetically people would hold on to their cars longer. It is. And then there's hypothetically an exemption for the parts from China, which I also think would be good. I mean, but you tell me what two things drive to these. First of all, the van business, the business that was down sells directly to the mechanics. We call on one million mechanics every week.

So they sell to them. The repair system and information people, the group you just talked about, sell to the garage owners. Little different place. And what they were, they were up, as you said, 25.7% OI margin, up 140 basis points. They did well. And why that's working is they're not quite as affected by the uncertainty. They're being driven, as you say, by the aging of the vehicles and the changing of the vehicles. All these new powertrains and the autonomous vehicles require different tools in those garages, lifts.

and aligners and computer programs to do this so that business is going well. All right, so that's a bright spot. Right. Overall, as we see a lot of economic uncertainty, what does it mean for your business more broadly? You have some different segments. You also work in aerospace and some other things. So what does this all mean as we see companies cut back on spending, possibly cut back on CapEx?

and you can see companies given two sets of guidance like united's a great example they gave one set of guidance if this happens or this happens that's a sign that people don't know what's going to come there's a couple of things about the situation right now first of all we operate in a critical snap-on where where the penalty for failure is high and the need for reliability and repeatability justifies a snap-on level product and you can't back away from the critical it's kind about repair you can't leave the jet engine on the ground so we are not immune to the effects you're talking about but we're

resistant to it because of the criticality. Secondly, if you talk about the tariffs in general, Snap-on makes in the United States and we have the facilities all over here and we make a version of everything we sell here in the U.S. So however the tariffs works out, we're kind of advantaged because we can adjust to it. We have the facilities here, we have the workers, and we have the know-how. So we know how to make everything here. We don't have to learn it. All

All right. You are a glass half full guy. Always. Always when we talk to you about the business. I want to talk to you more broadly about. That's because I'm from Snap-on.

I want to talk to you more broadly about manufacturing. We've seen a lot of weak numbers when it comes to manufacturing. How important is a real manufacturing renaissance in this country for your business? And do you think that the current policies are setting us up for that? Two things. One is the tariffs aren't necessary to reshore manufacturing. That became obvious when... Not necessary. Not necessary. Not necessary. Are they helpful? They can impel it, but the broad tariffs aren't necessary. The 232, the stuff

that deals with countries that are trying to not play by market rules are useful for manufacturing. But here's the thing. Manufacturing, after the pandemic, everybody understood that when Xi Jinping closed the ports in Shanghai and interrupted the supply chains, it ignited the inflation. What they realized then is we couldn't

depend on these long supply chains. So they were talking about bringing it back. There are two barriers for this. One is that you can't find workers. The big thing is you can't find workers. 492,000 manufacturing jobs are empty today. Why is that? Not enough skills. So to bring jobs back, it's not so much impelling from the tariffs. People want to do it already because they understand how important it is

They need to upskill the workers and they need to sell manufacturing because manufacturing is a place where you can keep a family warm and safe and dry and have pride and dignity. And the final thing about it is if you don't think you need manufacturing in this country, think about if you depend on other nations.

And either a natural disaster or intent by another nation, either by happenstance or intent, interrupts that supply. If it's going to take you three to five years to duplicate, as people are saying, to duplicate the manufacturing structure here in the United States, you're going to be at an advantage. So you have to have it here if you're going to be safe and dry.

Nick Pinchuk, it is always a pleasure. Thank you for joining us post earnings. Stock doing pretty well this week. We're always great to get your insight on manufacturing the economy because I know you got it. You have a very good view of both. All right. All right. Thank you. Good to see you. Nick Pinchuk, CEO, president, chairman of Snap-on. All right. As we had to break a check on Netflix shares after hitting a new all time high of one thousand one hundred and one dollars. Stock up more than 14 percent since earnings last week and is set to lock in.

Its third straight week of gains, its longest winning streak since November. Shares of Netflix pulling back very fractionally right now. Also, if you haven't already, you should follow our podcast. If you miss Worldwide Exchange, check us out on Apple, Spotify, or other apps. And we will be right back. Stay with us. For the full year 2025, we still expect to invest approximately $75 billion in CapEx this year.

The expected capex investment level may fluctuate from quarter to quarter due to the impact of changes in the timing of deliveries and construction schedules.

So that was Alphabet's CFO on the call last night, reaffirming the company's plan for CapEx spending this year. Shares of the tech giant, they are taking off this morning on the back of the latest results, powered in part by its AI investments. Welcome back to Worldwide Exchange. I'm Frank Holland. Coming up this half an hour, we're going to dig into those Alphabet results and the key takeaways for investors. But first, we're going to get you ready for the trading day ahead. We begin with U.S. futures and the major indices. They are on a three-day win streak. Investors digesting fresh reports on U.S.-China trade talks.

and some potential concessions there. Also, we're going to get the latest from Beijing coming up in the show in just a bit. But first, we'll take a look at futures, as we mentioned. Right now, futures solidly in the green across the board. We saw the Dow slip very fractionally into the negative territory just a short time ago. The S&P up 20 points, the Nasdaq up about 71 points right now. So we have seen a bit of movement here. We're going to take a quick look at the Nasdaq 100. Pre-market gainers right there at the top of the list. No surprise. Here's Alphabet. Shares up over 5%.

five and a half percent. AppLove and Meta, TradeDesk and Tesla rounding out the best performers right now. Then we're going to go to the other side of the coin, the worst performers on the Nasdaq 100 in the pre-market. Take a look. Intel right here at the top of the list after earnings. Shares pulling back about five and a half percent. T-Mobile, Charter Communications, Gilead and ASML rounding out your worst performers on the Nasdaq in the pre-market. Quick check of Megacap tech stocks on the back of those Alphabet earnings. Taking a look out

Apple, really the outlier here, pulling back about a third of a percent. Meta, as we already showed you, up 3.5%. Microsoft up a third of a percent. Amazon up 1.5%. NVIDIA pulling back very slightly, but still up just around 1%. I want to do a quick check of chips as well. Again, after Intel, it lowered its guidance. Take a look at the chip sector. We already hit NVIDIA. Some other names here on the board. Broadcom, those shares up fractionally. Micron, those shares up over 1%. We're going to talk a bit more about this later in the show as well. A little tease, a deep tease.

Taiwan Semi pulling back about a third of 1%. Quick check of the dollar right now. Taking a look at the dollar. Actually on pace for a weekly gain. Right now it's up a quarter percent. Week to date it's up about a quarter percent. And quick check of the bond market as well. Yields pulling back just a bit. Just a few basis points from yesterday's level. The benchmark at 4.29 right now.

Okay, that is your setup. We want to turn our attention back to Alphabet, the company's first quarter earnings beating forecast with revenue up 12%. That was largely in line with estimates, results being driven by growth in advertising services and the cloud. Alphabet doesn't issue guidance with its earnings reports, and management would only say they expect a slight headwind to their ad business from changes to the so-called de minimis rule. Let's talk much more about the quarter now with Joel Kalina, head of TMT Trading at Web Bush Securities. Joel, good morning. It's good to see you.

Yeah, Frank, how are you? So I want to get your take on the quarter. I think the one thing that I thought was interesting is a very slight. I want to I want to emphasize it was a very slight miss when it came to cloud revenue. Sometimes that can tank these companies, these hyperscaler companies. It didn't seem to matter because revenue was better than expected and earnings were better than expected. But what do you make of what we saw in cloud?

Yeah, I mean, the cloud is obviously the one source of disappointment that I kind of picked up, and especially in my conversations last night. But I think more importantly for the Google story, the core business exceeded expectations. Granted, they were lowered, but kind of search came in. You know, growth was up 10%. The buy side bogeys had kind of fallen to up 7%, 8%. So that's a healthy beat.

operating margins came in well ahead as well and that was a big source of frustration just a quarter ago so I'm taking the glass you know half full approach with alphabet and saying this is a huge relief especially within the mega mega cap tech complex just given how sentiment has deteriorated so quickly in twenty five

how light positioning has become. This is a very positive sign and stock right now is capping above the 50 day, you know, hopefully can hold it by the close. Yeah. Again, I sure as alphabet they're up over five and a half percent. So before the report, I was actually talking to people. Some of them were actually worried about search thinking that Jenny, I may be replacing a lot of the search business and that people will kind of navigate over there. Um,

Another area to talk about is really that hyperscaler competition back to the cloud business. I want to play a soundbite from Robert Smith from Vista Equity Partners. He was on our air yesterday with Scott Wapner. I want to play this for you and ask you a question. There are going to be losers in this market. What's going to happen? Certain companies will become agentic. Certain companies will all become Gen AI enabled in their customers. Others will not have a right to exist because they will not have adopted and evolved properly and fast enough.

So, Joel, just to clarify, he's talking specifically about software companies there. I think a question going forward for Alphabet, when we're talking about GCP, their customer base, where are they at when it comes to all this? The software companies that they serve, are these the companies that are going to have this agentic AI and are going to have basically what Robert Smith called the right to continue to exist? Or do they have mid-tier companies? I mean, where are they at in this battle for customers? Yeah, I mean, they're pretty much in the thick of it with everyone else. I

On the positive side, their commentary around some of their Gen AI products was very positive last night. They are seeing traction with some of their newer products. But yeah, it's a knife fight out there in this space. Competition is extremely intense.

kind of a new chat AI chat bots and large language models. Continue evolve at such a rapid pace and hence why Google needs to kind of reiterate that capex number of seventy five billion as well. If they you know Zuckerberg told us over a year ago. You know those who slow their spending you know first are probably most at risk to be displaced. Now I don't think Alphabet's heading down the path of Kodak quite yet I know. Some people have made that comparison but.

You know, right now they're still hanging in to some degree, but there is this lingering overhang with the story. Where does Alphabet, you know, fit in search, especially with the younger demographic?

And then obviously the regulatory background remains murky as well. Yeah, just for context, they are the number three hyperscaler after Amazon and Microsoft as well. Another question, YouTube revenue, that actually missed estimates. Again, very slightly. I don't want to overdo it. But generally people kind of saw the ad businesses being strong. In fact, Trade Desk is up this morning, I would think.

on the back of those Alphabet earnings and the ad numbers. But the fact that YouTube, it missed a bit. What does that tell you? What does that say? I don't even know. And is it a read-through to the ad businesses of Amazon or Microsoft and the other big companies? I think it's a little bit idiosyncratic in nature, YouTube, more or less just because, you know, competition continues to intensify from TikTok.

You know, I would have thought a ban from TikTok would have been a massive tailwind for YouTube and their business. Clearly, that situation has been kind of that can's been kicked down the road, you know, endlessly. Yeah, it's a little bit concerning. But again, expectations have been so lowered with really the overall story for Alphabet. I think it's going to get a little bit of a pass. And given the fact that valuation isn't demanding here at all.

People are probably going to view it as a relatively cheap defensive hiding place. And again, positioning was very light. I'm telling you, five out of 10 into the print. So again, it's you're not actually it be lowered expectations is my point. And I think it's probably works the next two, three quarters. Yeah. I mean, listen, if people lower their expectations and you go over the bar, you went over the bar. I think that's all that matters. At least this morning shares alphabet up over 5%. Joe Kalina, great to see you. Thank you very much.

Have a good day, Frank. You too. All right. Right now, we want to take a moment to show you CNBC's newest subscription streaming product. That's CNBC Plus, which you're currently seeing. This is our CNBC Plus data feed. It shows enhanced data and the latest headlines during our live program. You can see right there on the sideline. You can read about Alphabet. You can read about the Trump Organization, a number of other things. It's also going to see this on a number of other shows and your favorite CNBC shows anytime, anywhere. You can look at it on the go and also on demand.

All right, time now for more of your big money movers. We're going to start off with T-Mobile. T-Mobile's first quarter earnings beat forecast, but the company added fewer wireless subscribers than expected as their rivals stepped up promotions in a market where providers are leaning on price locks and bundles to attract customers. T-Mobile CEO says it's not currently seeing any material impact from tariffs.

Boyd Gaming reporting first quarter results that beat estimates. The casino operator says it hasn't seen any meaningful shift in consumer behavior or spending patterns so far this quarter, despite economic uncertainty and that threat of tariffs. And Whipsaw Action for shares of Boston Beer after reporting higher first quarter profit and revenue. The Brewer, which owns a number of brands out there. They own Sam Adams. They own a...

What is that stuff called? Sorry about it. They own some Adams. They own a number of other brands. I'm going to leave it there. Shares up about 3% right now as we were just talking about it. But they own truly. That's the one I was thinking about. I was about to say White Claw, but it's truly. They do expect tariffs to be a drag on earnings over the full year from tariffs on aluminum and materials imported from China and for in-store displays. But you can see big spike and then kind of a decline. Shares of Boston Beer right now, they're up just about 3%.

All right, coming up, the latest on the apparent moves by China around its trade standoff with the U.S. We're live in Beijing with the very latest when Worldwide Exchange returns. And welcome back to Worldwide Exchange. We're following some new developments out of China this morning around its trade standoff with the U.S. Our Eunice Yun joins us now from Beijing with the very latest. Eunice.

Thanks, Frank. Well, President Xi Jinping chaired a leadership meeting today and vowed to support those companies that are affected by those tariffs. Some of the more specific measures are to return certain money that the government collects and turns into funds back to some of these companies to strengthen the social security system to help affected workers, and then to integrate domestic sales and foreign trade. In other words, trying to

find ways to help some of these Chinese exporters to sell into the Chinese market. This effort is a part of a broader plan to really prepare for the contingencies in what the government here sees as an expanding trade war.

other measures that they said that they would continue to do is to cut interest rates of the bank reserve requirements in what they described as a timely manner. So that would be easing on the monetary policy side. They also said that they would would vigorously develop the services consumption. So again prioritizing the Chinese market and Chinese consumption and then finally to accelerate the current fiscal deficit spending. So no new

announcement of any additional fiscal spending, Frank, but saying that they are going to accelerate it. Obviously, a lot of concern here among the leadership about the impact of this trade war on the economy here. A lot of concern here in the United States about this trade war as well. I want to ask you about a new Bloomberg report that came out this morning. China may suspend its 125 percent tariffs on some U.S. goods. Are you hearing anything about that?

Yeah, actually, we're hearing more and more about that, that there are several reports now on social media, as well as just reports from businesses who said that the Chinese government has been reaching out to them to ask exactly what would be helpful for them if they were to require some sort of a tariff relief. So there was a report that was going on social media with 131 possible

products that could be in line for tariff relief. Still not sure if that's going to actually happen, but there is definitely some effort on the part of the government to reach out to companies. In fact, AmCham said that some of their companies have also been reached out to by the government about this. Our Eunice Yun live in Beijing. Eunice, thank you very much.

Coming up here on Worldwide Exchange, the one word that every investor has to hear today and the stock pick that every investor needs to know. Plus, fresh concerns for the housing sector at the start of this critical spring selling season. We dig into that when Worldwide Exchange returns. Stay with us.

Welcome back to Worldwide Exchange. Now turning to the housing market and fresh concerns at the start of this all-important spring selling season. Sales of previously owned homes falling nearly 6% in March from the prior month, the slowest pace since 2009. You can see the chart over right here. The bar just goes straight down. So in addition to continued elevated prices, higher mortgage rates and concerns over the broader economy also weighing on sentiment. For much more, let's bring in Logan Modishami, lead analyst at Housing Wire. Logan, good morning. Good to see you.

So, Logan, I got to ask you. So month over month, sequentially, the sales drop by about 6 percent. But we have so much economic anxiety. Is that like a warning sign or is that to be expected?

The existing home sales data is slightly old now. Our weekly pending contracts for the last four to five weeks have actually shown positive year-over-year data. Purchase application data this year, it's rare to say this, it's been a while, is actually positive year-to-date and positive year-over-year. This with rates being elevated. This is why I found the housing market very encouraging that even with elevated rates,

Inventory is growing. Price growth is cooling down. We just had rates spike up, back up again recently due to the volatility. But if mortgage rates could just head down towards 6%, 100% confident that we could get sales to grow this year. We are working from the lowest bar ever, and especially purchase application data. The last time it was this low was the 1990s. No doubt was the number one band back then. But Logan, by the way, if we're going to wish rates go down, let's get them down like three. Why don't we just wish for six? Let's just be for real.

You know, three, four, five is difficult with monetary policy. The honest truth is monetary policy is not really set for housing to grow. We see this with starts and permits. But it is encouraging to see the data get somewhat better on a year-over-year basis, even with elevated rates. So you're saying this is old data. Which economic reports generally are? They're backwards looking. You're saying the picture currently is a bit different.

So I do want to ask you this. Me and the team were talking about this earlier, and I was asking them, isn't this good? So inventory for existing homes is up 20% year over year. And as you mentioned, the price growth is slowing down. Prices are still going up, but it's slowing down significantly. Isn't this good? Isn't this what everybody wants?

It is 100% positive. That's how people should look at the housing market. If inventory was still very low, like we saw during the COVID years, and price growth was accelerating above the growth rate of inflation, that is a terrible, unhealthy, savagely unhealthy housing market. So what we're seeing now, and especially last year and this year, are things that will set up a better housing market in the future. More inventory, more choices, more

Price growth slowing down, all positives for the housing market. Very similar to what we've seen in previous decades. If the economy does go into the recession, the backdrop is better right now for housing. All right, so we bounce off of our low when it comes to the housing market. It sounds like at least temporarily things are improving a bit. Some of these reports where it's like worse since 2009, it's not really capturing the current environment. So one more question for you.

First-time buyers at 32%, same level as last year, but historically that's been about 40%. Investors as buyers at 15%. What does that tell us about the housing market? By the way, that stayed steady year over year as well. It's

I mean, the millennials are still a massive generation. Gen Z's, the elderly ones are still buying homes. So when mortgage demand picks up, first time home buyer does pick up. So rates are a little bit lower this year than last year. So the first time home buyers should pick up a little bit more. They finance 90 percent of their home purchases. So if rates just go a little bit lower towards six percent, the millennials will recapture their number one ranking as the biggest home buyers in America.

You said elderly Gen Zers? I don't know. What does that even mean, Logan? Yeah, yeah. What's an elderly Gen Zer? You got to split these groups out now, you know? They're so big that you got to split them up. Okay. We'll have to dig into that some other time. Elderly Gen Zers. I got to figure that one out. I'm going to be over here by myself. By the way, turtleneck hair, looking great. Logan Matashami, great to have you on. Have a great day.

Have a great weekend. All right, coming up here on Worldwide Exchange, buy in the dip. The semi-name our next guest says is a top buy, despite being down double digits on the back of President Trump's tariffs. That name, our mystery chart, it will be revealed. Stay with us. And if you haven't already, you should follow our podcast. If you miss Worldwide Exchange, check us out on Apple, Spotify, or other podcast apps. Much more coming up right after this break.

And welcome back to Worldwide Exchange. As we close on the 6 a.m. hour, a check of a few big stories that we're following this morning. Intel is falling as the chipmaker posted a first quarter loss and gave some weak revenue guidance. You can see shares are down more than 5.5%. The company's also cutting its capex by $2 billion this year and expenses by a half a billion. This

The CEO also revealing layoffs will begin this quarter, but did not give any numbers. The Financial Times is reporting that Apple plans to shift the assembly of its U.S. sold iPhones to India as the tech giant looks to continue shifting away from relying on China. The FT says that could happen as soon as next year.

Meta carrying out a fresh round of layoffs ahead of its earnings next week. The unspecified number of job cuts coming and the company's reality labs division that's focused on developing virtual reality, augmented reality and related wearable devices. Gilead Science is reporting a first quarter profit, but that revenue was flat as sales of cancer drugs slowed offset growth in treatments for HIV and liver disease. Shares of Gilead, they're pulling back nearly 4%.

Shares of Skechers, they're dropping as the footwear maker's first quarter sales, they missed estimates and it pulled its guidance for the year, citing some uncertainty from the global trade war. Shares of Skechers pulling back more than 7%. And the Trump administration is relaxing rules to help U.S. automakers like Tesla develop self-driving cars and a push to compete with their Chinese rivals. The Department of Transportation announcing the companies will be exempt from certain safety regulations for testing purposes.

All right, turning back to the markets with all three major indices looking to keep the ongoing rally continuing to close out this week. Taking a look at futures right now. We've seen a lot of movement when it comes to futures. The S&P and the NASDAQ in the green. However, look at the Dow pulling back fractionally right now. For much more, let's bring in Jeff Kilburg, founder and CEO of KKM Financial and a CNBC contributor. Jeff, good morning. Good to see you. Good morning, Frank. How are you, pal? So, Jeff, what do you make of this movement in the futures? We're well off of our highs of earlier. Also seeing the Dow kind of fluctuate between positive and negative.

Well, it's fascinating to see. We're looking for four days in a row. The last three days in the S&P 500, Frank, we've had consecutive 1.5% or more gains. We haven't seen a fourth consecutive day going all the way back to 1982 when ET was being released in the box office. So I think there's a lot of momentum, but there's also a lot of shorts and underinvested. We saw a wild washout in the month of April. So I think right here, right now, with the VIX coming down back under 26, 27, I think there's an

an absolute opportunity for us to move higher kind of to where we were before the rose garden bed bottom, whatever we want to call it. Well, you're just making up the road. Are you talking about the tarot? It's okay. I like the rose garden bed, but I didn't even know where you're going with that one, Jeff. I got coffee in me this morning, Frank. I'm ready to rock, pal. I always believe that you're ready to rock. While we're just talking right now, why don't we get to your word of the day? We've got a lot of stuff to talk to you about this morning.

Amplified. I think my word of the day is amplified due to the fact every move we're seeing investors, market moves as well as sentiment has been amplified due to the trade tariffs. There's been so much emotion injected in the marketplace. I've seen every move, even today, overnight futures being amplified.

All right. So you see that amplified. J.P. Morgan, Dubrovko, Latko's comment came out with a note overnight. I want to bounce this off you and see what you think. Here's what he says in part. Obviously, we can't read you the whole note. The sentiment is very bearish right now, especially within the macro community. Most are disregarding the latest trade developments in part due to, quote unquote, what he calls Trump exhaustion. We observe that many prefer to stay in cash and maintain lower leverage in their books.

What do you think about this? Whether that cash is short-term bonds or money markets, what do you think about the fact that there's so much money potentially on the sidelines? What does that mean for the direction of the market going forward?

Well, Frank, you know I'm not a contrarian, but the fact that we've seen so much money deleveraged, so many hedge funds deleveraged. When you talk about NVIDIA, which was the darling of all stocks in 23 and 24, being owned by over 500 different ETFs, now that you've seen the MAG-7 valuation, or concentration, I should say, in the top 10 of the S&P 500, now that you've seen it revalued, I think there's an opportunity for

for the market to move higher. I'm not saying this can be a straight line higher, but there is, in my opinion, it was overdone to the downside. We priced in the worst case scenarios. All right. How do you also look at Staples having a bad week this week? Staples down about 1% this week. They're actually the only sector in the negative. And then you look at some big names, Kimberly Clark and Procter & Gamble, worst week since 2022. Pepsi and Church and Dwight, worst week since 2023. What does that tell you about sentiment?

Well, I actually think when you see this dispersion in sectors, look at financials this week, one of the best week we've seen in financials. When you see sector dispersion to the extent we have in the month of April, which has been wild and historic, I think that actually signals a bottoming component. Because when you see people continue to rotate, we've talked about this rotation a lot here on Worldwide Exchange, due to the fact that investors are repositioning, rebalancing. So I actually take that as a positive.

positive because there is still strength in the consumer data. We've seen that recently, Frank. But I think there's an interesting component going on with the sector dispersion. You know what else you're seeing as a positive, Jeff? And you're going to have to explain this to me and the whole audience. The moves in one commodity, copper. You say the moves we're seeing in copper are actually good for the equity market. What's the connection?

Well, it's been a bellwether for a long time. We call it Dr. Copper here in Chicago. But when you see copper, when we saw right after the trade tariffs were announced, whatever that cardboard with whatever Ouija board was used to concoct those tariff numbers, we are actually seeing Dr. Copper, which wanted to trade under $4, come back up to $5. Dr. Copper has always been a good bellwether to tell us demand, specifically out of China. All right. By the way, you also call it deep dish pizza there in Chicago. It's not pizza, but we're going to move on past that one, Jeff. Why don't we get to your pick? What's your pick for today and why?

Well, I think you have to look what's been oversold, what's been washed out. Obviously, we've seen a revaluation of the MAG-7, but I want to take a step further, go into a subsector, and it's Micron. Micron is in the semiconductor chips. You've seen semis. Look at SMH. It certainly has had a falling out. But when you look in the last one year, Micron has been sold twice as hard, down almost 50%. And when you talk about the AI theme being rejuvenated, you're going to see Micron, which is the leader in memory chips. And also, Frank,

made here in the U.S. It's fabricated in Boise, Idaho, as well as Virginia, and they're actually building a $100 billion mega fab in New York. So the fact that they make it special treatment due to the fact that they're here making the memory chips in the United States, that's why I want an Omicron. It looks like it's going to go test its 50-day moving average about $10 higher at $87. Just a really quick question, Jeff, and we've got to go after this. They do memory and storage. Is that the best way to play this in your mind? Yeah.

I think when you see an oversold, exaggerated, or amplified move in Micron, you can't play that mean reversion in a name like Micron to catch up as you see the MAG-7 potentially come back to life here in Q2. All right, Jeff Kilburg, your pick for us today, amplified your pick, Micron. Great to see you as always. Thank you. See you, pal. Here's what to watch today. We get the latest read on consumer sentiment this morning and earnings, including Advi, AutoNation, and Colgate-Palmolive, among some other names.

One more look at the futures this morning before we let you go. We've been talking about the Dow actually going from positive to negative back to positive right now. You can see it's once again fractionally lower at this time. The S&P and the Nasdaq both higher, at least right now in the pre-market. Also want to take a look at Alphabet shares after earnings, that stock popping. So very interesting. Revenue beat expectations, EPS beat expectations, but the cloud business and YouTube ads, that actually came in just very slightly under estimates. Still the stock up big, up nearly 6% right now. Also, quick look at social media stocks.

that seem to be popping on the back of these alphabet results. Take a look right here. So Reddit and Pinterest up over 4%, Snap up over 2%. So kind of a halo effect when it comes to the social media stocks benefiting as well. All right, that's going to do it for us here on Worldwide Exchange. I hope you have a fantastic weekend. Squawk Box starts right now. You've been listening to CNBC's Worldwide Exchange. You can always catch us live weekdays at 5 a.m. Eastern.

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