it is 5:00 a.m. here at cnbc global headquarters. here is the "five@5. stocks set to rebound after the slide that put the dow in the red for 2023. call it a sentiment shift. bank stocks gets a boost on the week-long skid how one bank executive is taking matters in his hands. and apple rewards investors to the tune of $90 billion and showing surprising strength in one market. and we are counting down to the april jobs report and a look at the one sector seeing hiring

more higher. later, looking ahead to the weekend to the berkshire hathaway investor meeting. what you want to hear from in om omaha. > it is friday, may 5th, 2023 and you are watching "worldwide exchange" here on cnbc good morning welcome to "worldwide exchange." i'm frank holland. happy friday hope your morning is getting off to a great start let's check on u.s. for futures. they are in the green across the board. the dow dipped in negative territory for the year the dow is up right now 100 points s&p and nasdaq up as well. this is after another rough session for stocks and one that saw the dow close lower for the fourth straight session and turn negative on the year we want to check the bond

market we watch the bond market after the fed decision to raise rates. benchmark 2-year treasury at 3.18 below the 4% yield we saw days earlier. we are watching energy and oil market impacted by the increase in rates wti still below $70 a barrel up 1.5%. brent crude at $73.60. natural gas is moving to the down side. down almost 1% we have to look at shares of apple. higher ahead of the open now after topping estimates for the fiscal second quarter thanks to stronger than expected iphone sales. apple authorizing the $90 billion share buyback program. we turn to arjun khapal with the highlights from the apple report

arjun, what stuck out? >> frank, i would not call this a blockbuster earnings report, but showed the resiliency of apple with 2 billion user install base revenue up 2.2% for the year the key was this iphone figure coming in ahead of expectations of $51.33 billion. that was up year on year in what was a challenging macro environment. the smartphone market globally plunged 14%. apparele managing growth with t iphone 14 which is clearly working. that excitement with the iphone was enough to offset the disappointment in the category of mac and ipad. mac sales down 30% year on year. apple told investors this was not a great quarter for the mac or ipad.

investors were expecting that. the expectations were low. the iphone figure, frank, that excited the market that is why apple shares are up in pre-market. >> apple shares up 2% in pre-market you are saying it wasn't a blockbuster report tell us about services what was the table read on services >> services remained resilient revenue grew 5%. this is a deceleration from double digit growth. services is the category for apple to continue to get revenue from the 2 billion plus iphone users install base that slowdown is a concern again, there are macro factors at play. advertising apart of the revenue figure we have seen the market slow down there consumiese -- consumers are not spending on apps a $20 billion plus business in the quarter. it is positive for apple with growth and it is the slowdown

which is something the market will look at and hope the trend doesn't continue >> we talk about apple in india. what about international sales what with did you see there? >> china was again a market that was interesting. revenue up 2.9% year on year 25% down on the quarter. interestingly, this was supposed to be the quarter where all that pent-up demand from china was supposed to be unleashed because covid restrictions were removed and chinese were supposed to go out and buy new iphones. that is not happening at the scale people thought a lot of chinese consumers are choosing to spend money on travel that may have delayed purchases. the next iphone will come in a few months and we wait for that. that is what i think is going on in the china market right now. investors hoping we may see more growth coming from the market in

the next few months. >> arjun, great stuff. thank you very much. time to get a look at the other top stories. we continue to watch a wild week for the regional banks bertha coombs is here with the latest on that bertha >> good morning, frank banking fears continue to weigh on wall street sentiment as the sector looks to halt a week-long slide driven by contagion fears and short seller manipulation which is what regulators are looking into keycorp with its stock fall to the 52-week low yesterday. one executive is buying up shares in a big way according to filings with the s.e.c keycorp head of banking bought 75,000 shares of the company at $10 a piece. paying $730,000 in all keycorp says the insider buy reflects the durable business

mo model. shares are higher in the pre-market amid the turmoil, a poll from gallup shows people are worried or moderately worried about the safety of their money housed in banks. frank, gallop says this is a similar level of what they saw during the poll taken back in 2008 shortly after the collapse of lehman brothers this is not a poll they conduct regularly. a stress test. >> a lot of concerns about the market out there across the board. bertha coombs, see you later on. thank you. turning attention to the broader markets. jpmorgan chase seeing investors shifting to gold and tech stocks as they seek a buffer against the possibility of the u.s. recession this year. a note, strategists say this trade is being defined by overweight on gold, growth stocks and currencies.

this bet is far from crowded with the inverted yield curve with demand increasing since the start of the march, nasdaq is up 8% and gold gains 12%. global equities up 3%. let's talk about this with dan veru great to you have here in the house. >> thank you very much. >> a narrow trade. big tech and gold and currencies with the exception of the u.s. dollar. >> that makes total sense to me. gold is good for clients u.s. is the first economy to raise interest rates now we are coming to the end of the rate cycle other economies will continue to raise rates. that will put down ward pressure on the dollar and pressure on the commodities like gold. >> you are saying we are at the end of the rate cycle. when do cuts come? is it possible later this year

in all fairness, jay powell was ambi ambiguous. >> it is a battle with the yield curve and what jay powell is saying my money is on jay powell. he is going to lead. unless there is some big economic dislocation with broad ramifications for demand then i see they will keep interest rates higher for longer that certainly is what i heard at the milken institute. that was a recurring theme with the sessions that i participated in >> i know you just got back from there. you said a.i. was a big theme there. the banking crisis is a disrepubldi disruption to the market where are you putting money to work >> i want to buy companies that don't need banks to grow or sustain their business we have a strategy that focuses

on concentrated holdings with compounded return. my partner will potter and i run a portfolio where we find companies that have big returns in terms of return on equity and return on invested capital high free cash flow and a long track record of capital deployment >> that's granular we are not just talking gen generality what is the one thing all three have in common that makes you confident to put money in the names? >> each company generated 100% free cash flow to net income of the the business >> you are trying on avoid stocks that rely on loans and debt because of the rising cost of capital

>> yes the acquisition of the companie with public valuations coming down and delayed effect. it would be expensive for private equity to compete for private assets because the cost of capital is so high. >> a lot of dry powder dan veru, thank you very much. a lot more to come here on "worldwide exchange," including the one word you need to know today. we speak with the ceo of university hospital in new jersey about the state of health care hiring as we await the april jobs report. we have a very busy hour still ahead when "worldwide exchange" returns. stay with us (cecily) oh, it's america's most reliable 5g network. (seth) and it's only $35 a line. (neighbor) i got that deal too.

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welcome back to "worldwide exchange." keeping our eye on the futures d nasdaq up 1% s&p is the same. very early in the pre-market right now, up .25% the nasdaq winners and losers. top one is apple after a report from arjun which said it is not blockbuster, but it is up. palpal is up 1%. lucid is up. meta platforms is up over .50%

coming up here on "worldwide exchange," my next guest says months of hiring gains in one sector could be set to slowdown. ivsi hpil nh the ceo of the unertyostainew jersey right after this. at morgan stanley, old school hard work meets bold new thinking. ♪♪ at 87 years old, we still see the world with the wonder of new eyes, helping you discover untapped possibilities and relentlessly working with you to make them real. old school grit. new world ideas. morgan stanley. i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so...

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your money ahead of the open, the regional etf is down 15% this week and on pace for the worst week since early march when the crash in silicon valley bank emerged. the hardest hit this week is pac west and western alliance down 54% and 51% since monday both banks looking to shore up investor confidence. keycorp and comerica and citizens hit hard this week. trading at 52-week lows. joining me to discuss is gerard cassidy. great to you have here >> thank you for having me. >> we are seeing all of the moves with the regional banks. give us a sense where do you see regional banks >> you know,that's one of the

best questions i've heard in the time period. i like how you framed it it is all about sentiment. the fundamentals for the banks with the exception of the banks going into receivership because of the mismatch with assets and liabilities and deposit runs core banks and regional banks and fundamentals are healthy and good first quarter results were good. not fantastic. outlook for the sector and credit is still strong capital is healthy liquidity is strong. deposits are slightly growing. it is a sentiment call >> we are looking at sentiment i don't think the sentiment changed dramatically kre is bouncing 1.5% pacwest and western alliance under pressure yesterday now up double digits in the pre-market why do you see investors in the

pre-market buying back into the names when just yesterday they were bailing out >> it's a great question again the sentiment is the key factor here earlier in the week, we figured out the kre has 85% short this week the volatility is created by shorts piling on and pressing shorts now they have daily or weekly gains and they reverse out that volatility is to do with the trading of the near-term focus. that is the key and how they run their business to your point, there is nothing materially different from today to yesterday these stocks why greatly oversold >> gerard, i want to pull on this thread. we see the graphic here.

kre interest has jumped 96% since mid week how big a factor is short selling for this sector? you said it is trading on sentiment, not fundamentals. >> it is interesting what we really need to see is a catalyst to change the sentiment. we get this question regularly the answer is time which doesn't happen overnight the second answer is second quarter earnings which will not happen overnight it comes out in july what people will see is sentiment will change especially when you get the long onlies in there. they were huge sellers of the regional banks after silicon valley bank failed they are not stepping in yet when you see the value where the stock is trading at big discounts, you start to get the stocks to move up 20% to 30% in a couple of days

obviously shorts will cover and that will add more upside to the names. >> you mentioned second quarter earnings coming up, the loan officer survey quickly, is that meaningful for the stocks with sentiment so low? >> i don't think so. we expect the banks to probably show they are tightening again another interesting sentiment, the discount window borrowing and lending program yesterday from the securities portfolio came out those numbers are down about 50%. that's another good sign we are starting to get early indicators that the worst is right now. >> gerard are watching the kre appreciate your insight. >> thank you we are now counting down to the april jobs report due out in three hours from now at 8:30 a.m. economists ss expecting employe

to add 180,000 jobs. the unemployment rate expected to tick up 3.6%. health care has consistently been the second largest sector in gains adding 51,000 net new jobs joining me is edward jimenez >> good morning. >> do you paint the picture of what it is like with labor and healthcare sector? covid stressed a lot of employees. they had to work long hours. stressful situation. when it comes to wages and demand, where are you right now? >> certainly given the terminal rates which means people coming and going, you have a free-for-all when it comes to what hospitals and physician

groups pay employees the turnover rate is near 20% for nurses imagine in a highly competitive market that you pay attention t wages and hours and development. wage takes the cake. i think all of the hospitals and physicians have to pay attention to wage. >> you have a very busy urban hospital i was lucky enough to be there when the first vaccines arrived at university hospital there was so much demand for the community. i want to talk about the jobs report coming up last month in march, healthcare added 51,000 jobs. more than 20% of the gains do you see that trend continuing going forward? >> absolutely. my hospital particularly and i know from looking at the new jersey hospital association and with my colleagues in florida and all of us have a reasonably

large vacancy rate we have employees work overtime and work smaller schedules and different schedules. we don't have a situation where we don't have enough people doing the work, but what is happening is we are asking people to do different kind of work and more hours because we have to offset vacancies there will be a robust hiring for at least three years the reason i say that is because what we witnessed out of the pandemic is an extraordinary commitment to work force you watch certificate programs add more slots, but you need time to be in the classroom and develop skills and come out. i foresee this as being robust the other reason it will be robust is what the pandemic

taught academic medical centers -- in the united states, we have about 5,000 hospitals. there are only 200 decclinical centers. imagine the most so physician date -- sophisticated places, we take care of the sick of the sick when you take care of sick people, you immedineed more nurd staff. it is a combination of how you add labor to take care of the very sick people >> again, i want to highlight how important your hospital is to the new york and new jersey area dense urban population i want to talk about another big mac rmacro trend. how will a.i. impact the industry >> a.i. has limited utility in very complicated and high end

priors imagine traumatic care and transplantation. it has limitations when you think of the every day basic care that can happen in the hospital helping nurses with assessment and dispensing medication and understanding what is going on with patients and ancillary studies. there will be a.i. incompatible. that will not be the major focus. the opportunity lies in the day-to-day activity that would benefit tremendously. >> not the major focus, but a 20% nursing turnover nurses are the backbone of the healthcare system. could a.i. help with that? >> it can. i think we have to understand there are some limitations the nurse who gives a patient a medication hand-to-hand doesn't go away.

helping to assess and vital sign checks and communicate with the medical teams. there is a spot there where some of the work can be offloaded on nurses i think when that happens, nurses well feel more comfortable. feel like they have more time in their job. i think that will lead to job satisfaction. >> edward jimenez, thank you for your time. >> thank you have a great day as we head to break on "worldwide exchange," you see the draftkings popping for the quarter. the company says it expects annual revenue to surpass $3 annual revenue to surpass $3 billion for the first time i'm also a library board trustee, a mother of two, more on worldwid"worldwide exch after the break. i thoug that my wasn't as good as it had been. i needed all the help i could get. i saw the commercials for prevagen.

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it is 5:30a.m. in the new york city area we are just getting started here on "worldwide exchange." here is what's on deck investors not souring on apple despite the second quarter revenue drop we are digging throughout numbers to find the bright spots from cupertino. and the regional banks trying to stop a week-long slide. and what people want to hear from the weekend with warren all that coming up on "worldwide exchange" here on cnbc.

welcome back to "worldwide exchange." i'm frank holland. green across the board right now with the nasdaq leading the way after the apple report that beat expectations we will dig deeper into that in a moment we are looking at the s&p and dow up .50% in the pre-market. the dow would open up 1 00 point higher, but it is early. shares of apple moving higher after fiscal q2 earnings that beat expectations thanks to the strong iphone sales. overall, they fell for a second quarter in a row apple not providing formal guidance tim cook told cnbc it was a good quarter from the iphone point of view joining me now to breakdown the

results is martin yang martin, good morning martin, you might be on mute i can't hear you hope we fix that technical difficulty let's get a sense of the quarter. revenues decline, but there were beats in segments including the iphone >> we account for the foreign exchange headwinds and the quarter will show growth across several key markets. including china. i think overall, the tough and weak mobile phone market, the iphone did well. >> i want to look at the device sales for apple. that is a point of weakness. we saw a buy up of devices during the pandemic. we saw that pull forward of demand that should be here now looking at iphone sales, they were up 2% mac sales were down 30% year

over year. ipad sales down 30% year over year what do you make of that and when do trends reverse >> we are likely to see most trends across tablets and notebooks reversing to later around fourth quarter this year. >> was there a particular bright spot in the report that you saw? was there something that was unexpectedly strong? we know about the buyback and the dividend raise is there something investors should pay attention to here >> one of the most under pressure appreciated aspects is how much more the cap x is slow down growing. you know, apple is among the only one among big tech with the least amount of layoffs. they have the most disciplined investment approach to the operating structure. we are still seeing the

deceleration that would support a much stronger and stable earnings growth for apple despite the weakness in the device sales >> what with did you make of the services had arjun on earlier. there is also a savings account opening up what do you make of the services >> services is looking to ex accelerate growth. we like apple expanding services outside of the app store and economy. it is really leveraging a strong brand trust that is using more services and expanding the service everything on the long term. >> what is the price target? has it changed >> our rating has not changed for buyers our price target riaised from

$175 to $195. >> what is the key factor in the price target raise >> two factors number one is we are getting that earnings benefit from a lower than expected input. the second is we believe that most of the headwinds with device sales is closer to where we should see recovery on year over year device sales growth coming into september and december quarter >> okay. martin yang from oppenheimer your price target $195 thank you. >> thank you, frank. coming up, berkshire hathaway annual meeting. tiger 21 members among those

heavily invested in warren buffett and we have michael sonnenfeldt with the latest on the meeting. and travel group expedia and booking moving in opposite directions on quarterly results. both reporting record demand due to increased china reopening expedia embracing a.i. after the company did not update guidance for the full year. we are looking at the car market carvana expects to see positive earnings in the second quarter as the used car retailer focuses on cost cutting and profit over growth the positive outlook follows 98% drop in the stock last year. the company overspend to gain sales and inventory. the shares are now up 90% so far this year. lyft is getting out despite

beating on revenue and earnings for the first quarter after the weak forecast for the current quarter prior to the after hours move where lyft lost half the value as it lags behind uber with cost cutting efforts. shares of ftly down 15% in pre-market "worldwide exchange" is back in a moment go. go scientist. go software. go cure. go production. go faster and safer. emerson automation software helps breakthrough medicines get to market at warp speed. go human go. go boldly. emerson.

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berkshire hathaway to hold the annual shareholder meeting the company is offering a look at the investment strategy and market ideas of warren buffett with the bank turmoil dominating the conversation for more on this, i'm joined by michael sonnenfeldt of tiger 21. 30 of the members will attend the berkshire meeting. michael, good morning. >> good morning. thank you. >> looking at berkshire shares flat on the year when you go there, what are you looking for and what do you want to hear from warren buffett and company? >> so, you know, over the last 20 years, berkshire has pretty much tracked the s&p and out performance was before that. people who believe in berkshire think it is under valued based on the portfolio p i think when people go there, we have 50 members that are

attending the conference and there are holders of millions of dollars. they are looking at what they are hearing besides the biggest question is warren's age he is 92 years old the question is is this worth more with whim more running it r him passing on as will eventually happen. >> berkshire trading in line with the market this year, not flat >> right. >> it is a conglomerate. why do your members have so much conviction of berkshire? any thought of diversifying inve investments? >> our members only have exposure in 22% to 23% of public equities berkshire is the biggest single holding. a lot of berkshire holdings are members holding as well. apple was a big holding.

that is 40% of the public portfolio. i would say berkshire represents what evntrepreneurs think about the operating business and dividend paying companies. that combination is a winning combination for our members. we have private equity at all-time high of 31% and real estate in the mid-20s when you add that to public equity, it is a long-tefrm bet similar to berkshire. >> we showed a graphic a seconding ago. on 40% of members increased stake in berkshire 40% kept it the same 20% decreased it 80% of members are happy with what with the company is doing what do you expect going forward? we know a successor has been named for warren buffett going forward, what is the expectation going forward? what do you want that hear

>> our members meet in groups all over the world we have 100 groups today one discussion is this is a unique company people have been betting the jockey for years, meaning warren the value is in the stock. the portfolio is under values. another way to think about it is this is an s&p substitute with more upside than the s&p today it hasn't shown it in performance. performance is tracking the s&p for 20 years if you look at the s&p and berkshire, many members think there is more upside or b berkshire is a little under valued with potential to grow. that value could get unlocked with a different manager warren has an extraordinary portfolio, but strategies could be different with the next management >> michael, once warren buffett retires or steps down, there is more upside with new management?

>> what i want to say this is a unique company where you wonder whether warren's policies today are holding back the full valuation. the stock is under valued in some members' minds. the debate our members have is it better with him at the helm or not it is literally a debate we have in groups all around because of the unique portfolio it is all a reflection of his extraordinary talent at this moment, will more value be unlocked after he's gone? he has said to his own family that they are better off investing in the s&p after he's gone he is not completely convinced a lot of our members think there is great value there. >> interesting michael, great to have you here. thank you for the insight. >> thank you >> over the weekend, cnbc will have coverage of the shareholder meeting starting tomorrow at

10:00 a.m. only on cnbc and cnbc.com ahead of the meeting, pro talks is holding a special sit down from omaha that is happening today at 11:30 a.m. our own mike santoli speaks with tom russo. you can sign up for the event on cnbc.com/protalks. ahead on "worldwide exchange," the one word every investor needs to know today katie stockton lays out the trading day ahead and technical signals she sees suggest bing increasing bear sentiment in the market. cnbc is celebrating asian american pacific islander month of may we are sharing business leaders. as we head to break, here is ceo debbie sue >> i'm proud to be asian american because of my ability to straddle two worlds i grew up in a chinese-taiwanese

household which was different from being at school and with my friends. i think belonging to two worlds served me well personally and professionally i have depth of knowledge across different cultures and that richness and fabric that it provides in my life i would not trade for anything

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safety of bank deposits as negative sentiment dips to levels not seen since the financial crisis. turning to china, services remaining in growth territory. the index coming in at 56.4 for the month. the second highest figure recorded since november of 2020. back in the u.s., johnson & johnson consumer spinoff kenvue jumping double digits in the debut. coinbase exceeding for the first quarter with the narrow loss and reaffirming the goal to improve on full year adjusted earnings from 2022 jpmorgan chase's jamie dimon will travel to china for the first time in four years this month. and to the rapidly developing situation with the regional banks and dramatic week for a number of stocks questions being raised about possible short sel

sell manipulation. hugh son joins us with the latest hugh, what are you hearing now about regulators digging into the potential of market manipulation >> frank, thank you. it is a stunning week for regional banks pacwest and western alliance in free-fall after first republic was being handed over to jpmorgan chase out of receivership the concern is perhaps the short sellers are to blame for the action that you see banks pushed to the brink even if the fundamentals don't necessarily justify it you know, so far, i am concerned, but not seeing action from the biden administration or s.e.c. the white house has been monitoring the markets and including the short selling pressure on healthy banks

according to the white house press secretary thursday the s.e.c. is looking at identifying prosecutor misconduct according to gary gensler. we have to see whatreality i have no reason to believe the crisis is over for regional banks and you have the dynamic where they are pushed to the brink. >> you said there is no reason to believe the crisis is over. we had a guest today is a this -- today say this is not due to any particular reason other than sentiment? >> here we are within grasping for the price action if you look at pacwest and western alliance and what it is saying, the deposit base is stable it was a few days ago. if that is the case, what is driving this action? it really is the focus now which turned in the last day or so

it has been to the role of short sellers in the market. if that is the case and if they are profiting and making tons of money from the bets, what is to say that this will stop. there are a few banks now and we focus on pacwest and western alliance because they are most under did your asduress -- duress. if you look at the situation and i speak to wall street analysts on this and they say there is nothing to justify the price action that is the cause. >> you are saying they continue to profit from the short selling according to ortex they made $379 million yesterday off the short selling. something to watch hugh son, thank you very much. let's bring in katie stockton

with the latest. katie, great to you have here. >> good morning, frank >> every day, we ask the brightest minds the word of the day. >> you know, the same as the title of my report this week pivotal. the rational behind pivotal is macro data as the market absorbs apple's earnings the technical aspect is where i focus and we saw a strong close at the end of april. that close allowed the s&p to close above resistance level of 4,155. we are waiting confirmation of breakouts. by that, a couple of weeks above an important level it was important for us to confirm the breakout last week

with the s&p hold up above that level. of course, you see it has not managed to do so today is pivotal in that sense with a major comeback and we see that as a bullish development for the market otherwise, we stay the course in terms of risk off in positioning noting the short-term momentum points to the down side. >> give us a sense of the banking turmoil impacting the markets and where you see the points of resistance and support for the s&p. >> for the banking turmoil and what that did for us and our work is lead us to be skeptical with the phasing which is under way. a lot of names in the trading range environment for several months the regional banks have broken down telling us the range were in continuation formations that is the information that we gathered from that which is risk

that these trading ranges we have may turn out to be continuation patterns. we hope that is not the case the vix action tells us it probably is not the case we have to keep that in mind and continue to manage risk with that in mind looking at the s&p in particular, in terms of levels that we're watching with the 4,155 which is the upside threshold. on the down side, 3,800 is the move the 200-moving day average is one of the issues we look for. we will watch for the pull back this week to mature between here and there. that could provide us a nice in in inter

intermediate move. >> you were just mentioning the vix. what are you recommending? >> we are recommending top-down hedges the vix is difficult to trade. we recommend reduced equity exposure that means selling securities and it can mean using top-down hedging strategies with inverse etf. that is where we stand presently. we are hedged from a short-to-intermediate term long term, this will be an okay year we see that in sector rotation if you look at the sector rotation work near term, it is more defensidefensive. we are looking at staples and health care. it is different in six months. >> katie, thank you. futures are green across the board. the dow would open up over 100

points higher right now. the nasdaq is up over .50% we want to check regional banks. bounce off the lows for pacwest and western alliance both up double digits. that is it for "worldwide exchange." happy friday "squawk box" is coming up next

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good morning welcome to jobs friday the moves are helping apple. stronger than expected iphone sales. details on that and more straight ahead. plus, woodstock for capitalists. i don't think there is a lot of drugs there. becky has a big lineup from the berkshire hathaway annual meeting. it is friday, may 5th. cinco de mayo. big plans for tonight. "squawk box" begins now. good morning welcome to the "squawk box