tv Worldwide Exchange CNBC April 6, 2015 5:00am-6:01am EDT
good morning america. and hello to the world. we're broadcasting live from the usa today since we're working and most of europe is off for easter monday. >> i'm dominique. >> and i'm sara. here is a look at markets closed around the world today. we're open in the u.s. the ftse in london cac and dax and frankfurt are closed. as well as shanghai and taiwan. the nike in japan and south korea. many parts of the world are taking an extra day off for easter monday. on sunday thousands of people
braved the rain for mass at the vatican. pictures of pope francis calling for peace in the middle east ukraine, and africa. praying for the framework of iran and the nuclear deal to be successful. >> opening day in the vatican. it's a normal workday here in the united states. let's get down to business. >> let's check how the u.s. markets are set to open today. especially after the jobs report on friday. the markets were closed. futures were trading. it looks like we're going to open lower. down 134. it is early but clearly a disappointing read. 126,000 jobs added during the month of march. we saw treasury bonds dip. seeing lower yields across the board today. 18 182 is the yield. the dollar versus the euro
traded on friday. continuing to sell off. the euro is a bit stronger. it went up to 110 .20. you have a weaker dollar stronger treasury and stocks selling off a negative reaction to jobs. the nikkei closed up higher in japan. -- no lower in japan. >> just margely. >> but higher pretty much all yearlong. a steady climb near 15-year highs. >> the equity markets were closed on good friday here in the united states. they get a chance to react to the disappointing march jobs report. the labor department saying the u.s. economy added 126,000 jobs last month. the forecast was for an increase of around $248,000 nonforeign payrolls. it was the first time in more than a year that job growth was below that 200,000 mark. the jobs report -- expectations if when the fed will raise
interest rates. fed fund futures report a 28% chance of a september interest rate hike. now the first quarter of 2015 may be in the books, but our next guest said market performance may not begin until may. we have two. patricia powell joins us along with john from openen heimer. we have a bunch of things to talk about. the jobs report may be front and center for so many people out there right now. what did the jobs report say, john, to you about what is going on last year when january was a weak number. i remember december of 2013 was a weak nonforeign payroll number. this time we get it in march this year. i have to think the first quarter is highly us is suspectble to things like bad weather. we had the somethings on the
west coast. the labor dispute that settled in the last couple of weeks. you add the strong dollar to that and questions related to where is the price of oil going and developments in agree owe politics. let's take the first quarter like last year. a daysha view approach and look to second quarter likely with better weather the affects of the port being open on the west coast. a likely pick up in -- >> if it was weather why didn't know economists. they knew the economy barely grew in the first quarter. why were they so off? >> i have to say often the economists are very off. i think they were last year as well. with all respect to those practice the dismal signs. at the same time sometimes they don't take into account the weather. >> weather is going to be something we talk about a lot with regard to the past couple of -- >> too much. >> too much. is weather all it's cracked up
to be. can we attribute so much with what has been happening with the negative bias. is it pretty much weather. can we expect the optimism to come back maybe in april, may, and june? >> i don't think it's all weather. but one month does not a trend make. i think you have to put in context. it's one month. it's one fairly lousy month. but we haven't been riding at great months. if you go back to other recoveries, go back to the reagan recovery and look at job growth 500,000 jobs a month. even one month a million jobs a month. if you run almost 300,000 jobs a month, these are not robust numbers. historically we may have to get used to then. this may be the new normal but it's not a great job recovery to begin with. >> i thought bad news was good news it means the federal
reserve wouldn't raise interest rates. pushing out the time frame from june to september maybe even later. >> i think that what it is, sara, at this point, the market is thinking it's given a lot to that argument before. bad news is good news. now it's time to play a weak number as a weak number and questioning will we get a bounce in the number in april? >> you know, what is interesting, pat so many of the experts that we speak to, i mean, you guys included everybody talks about the idea that the federal reserve the wild card. right. what happens if they raise interest rates, if they do this year. can we say now given the economic backdrop we've seen that the fed is still as much a wild card? do we have to worry about what happens with interest rate policy given the fact that the economic data may or may not justify a rate hike? >> i don't think you get killed by the bush that you see coming.
anybody that doesn't see the fed pondering the rate increase isn't looking. so the question really is when are they going to move? i think not if they're going to move. i think the issue with the market has more to do with earnings lackluster earnings. you have trouble with the energy sector and that's probably a factor when it comes to jobs as well that we're going to be losing some really well paying jobs because as they shut down some of this capacity the jobs are not going to be there anymore. so i think these are real fundamental issues as opposed to the issue whether or not the fed raises rates this year or when they raise rates. >> perhaps it's the explanation behind the selling we saw in the futures market on friday after jobs and this morning lowered expectations for earnings which were already coming down. were they low enough looking at the economic numbers? >> i don't think so. i think it's more than timing. i think you have to remember we
entered the seventh year of the market recovery. we don't always gate fifth or a sixth or seventh year. i think our expectations have to be more modest as we go into the seventh year. doesn't mean we can't have a positive year. i think the robust earnings growth that we're used to early on in the recovery are not going to come to fruition. >> john, is the u.s. the best place to invest or do people have to look outside? >> i think now what we're getting the message is that we have plenty of opportunity developing europe. we've already had significant opportunity in the japanese market. plus, we have the emerging markets waiting on the wings of the theater so to speak to come on stage. that said the u.s. still has plenty of growth involved we could see in the positive performance of small caps and mid cap stocks which my recollection they were almost up
7% and still near records. so growth continues it's just it may not be the s&p 500 that is on center stage. >> i don't know. i don't know, pat, there's a lot riding on earnings and q 2 economic data. >> right. >> in terms of the stock market recovery. >> i think when you look at earnings where are earnings coming from? the small and mid caps. you're not seeing the earnings in the large -- >> internationally with the strong dollar. >> it's the strong dollar but the smaller companies have more room to grow. it's so much easier to grow a billion dollar or $2 billion company than it is to grow the mega companies that make up the dow industrial average or some of the larger names in the s&p 500. >> and less exposure to the dollar in the small and mid plus a boost from m&a activity. >> you are on the same page. in is good. hard to get two vast gists on the same page. a little bit later we'll bring you back in the hour and get more on your playbooks.
what in small caps -- which industries are you buying? we'll have that a little bit later on "worldwide exchange." all right. let's get you caught up on the headlines. greece's finance someone steer told the imf chief his country will repay a nearly $500 million loan due this week. the two met in washington on sunday to discuss greece's bailout package. >> a federal appeals court will not hear an insider trading case. leaving in place strict rules for what prosecutors must prove in order win the conviction. despite the decision, sources telling cnbc u.s. attorney is likely to continue to pursue an appeal of the case against former hedge fund traders todd newman and anthony. >> all right. a big one there. >> also ellen pao is speaking out for the first time since losing her sex discrimination lawsuit. she tells the wall street journal silicon valley must continue to work on the gender
issues brought up in that much watched trial. pao said having her private life scrutiny was still worth it. >> people flocked to the movies this weekend to catch fast and furious action. you saw it. >> i did. i saw the first showing on good friday. >> furious 7 turns out topped the north american box office. a new record for an april opening. universal taking in $240 million overseas. >> it hasn't even opened in china yet. that's the big deal. this could be a huge -- i loved it. i love the car scenes. they were great. here is the thing. the franchise i'm a big fan of. remember it was made by comcast, owned universal pictures. >> our parent company. one hot second is the rattle investment trust. things are about to heat up again he's going to tell us why next. >> and then baseball season officially kicking off here in america and some big time companies including disney are
getting in on the gambling revenue. they're not calling it gambling. we'll talk to one of the players in the space about how much money there is to be made in fantasy sports this season. >> it's a big deal. that and more coming up on the special edition of "worldwide exchange." that's coming up. [ male announcer ] some come here to build something smarter. ♪ ♪ some come here to build something stronger. others come to build something faster... something safer... something greener. something the whole world can share. people
year it's commercial rattle. the s&p 500 is up over 20% while the s&p 500 is up 9% during at the same time. according to a survey commercial real estate investor confidence is at the highest level they've seen since they've been tracking that data. with us now is a research and advisory services to talk about the real estate business. i'm interested because the real estate market has been a very very big sector so far. specifically to commercial side of things. can we expect to see that kind of momentum continue even with the worries about interest rates hovering over the market right now? >> good morning. great to be with you on the program. the simple answer is yes for a variety of reasons. most important one of which not only have we regained the jobs lost during the great recession, we added just about 3 million net additional jobs since the bottom in 2009. at the same time, we've seen
demand for commercial real estate grow starting with apartments. that was the first sector to recover. and then broadening to pretty much every sector including even shopping centers. and brick and mortar retail as well as the niche segments self-storage, for example, senior housing, hospitality. we're seeing demand all over the industry and this is driven by the fact that the economy has done so much better over the past 18 months or so than expected at a time of low interest rates. and to your question higher interest rates, of course will make everyone pause and think about evaluation. if you think about inflation is not a problem and the fed has plenty of flexibility, if anything they're trying to counter offset the deflationary forces in the economy, we don't anticipate interest rates to do anything radical over the next 12 to 18 months giving the market plenty of time to adjust between evaluation on the rattle side and cost of debt.
>> not worried about the rate increase. curious if it's broad based or lumpy. and if so which are the hot spots now? >> it's interesting. it started out to be very concentrated in the major gateway markets on the east coast and the west coast their leaving a lot of other markets out of the initial part of their recovery in 2011 and 2012. in the last couple of years, we've seen an impressive brordenning of demand mirroring what has happened with job growth. the other thing you have to keep in mind commercial rattleeality. the combination of the two things pretty much all over the country is bringing about this recovery that we're seeing. >> i'm interested because one of the things we highlight during the course of the economic we've seen the idea that the energy sector has been a real dag. a source of weakness for the
overall market. i'm wondering whether or not that's going it help have a ripple effect in the commercial real estate market. if so it may not be as much on the coast. it may not be certainly a west coast story or east coast story in the new york area. it's going have an impact in other parts of the country that are levered to parts of the oil market. what is your research showing about what the ripple effects could be because of that energy sector weakness we've been seeing here? >> it's something that we're tracking. it's more of a local and regional factor than it is an national factor. on a national basis, in fact the additional discretionary dollars are a positive. the fact that lower oil prices are deflationary the higher dollar, which is an offset of the lower energy prices is also deflationary are pretty much viewed as positive forces. especially for brick and mortar retailing. on a more regional basis all the texas metros we've been monitor
monitoring have been the leaders in job creation in particular. and we are concerned. there is a slow down throughout texas, particularly in houston which is more dependent on energy jobs than the other metros. the state has deverse fied since the 'oil. we don't expect it to be anything resembling ha we went through in prior. if you look at the data in the last four or five months we've seen evidence of continued strong real estate fundamentals. there's a bit of a pause we're not much concerned that it's going to turn the cycle or reverse the cycle by any stretch of the imagination. >> beyond texas, your advantage point in commercial and residential real estate. we're asking the discussion how strong was the economy. it was a weather blip. on friday we learned the economy added 136,000 jobs in march versus 250,000 that were
expected. is the slow down a soft patch in the first quarter and set to rebound or something more worrisome going on beneath the surface. >> i'm glad you asked. we get the question. if you look at the sentiment index you talked about at the opening of the segment, it is so well correlated and such a great predictor of not just commercial real estate conditions but the broader economy. going back to 2004 and 2005 commercial real estate onliersy ers owners who see the -- the foot traffic on retail and so on we're already beginning to worry about the economy in '05 and yibs well before the downturn. it was an accurate indicator of what was to come. same thing on way up in 2009 they were getting more optimistic. if you look at the latest rating. the optimism at the all time high. if you believe in the accuracy of the historical correlation
this should mean that the slow down we heard about on friday should be an aberration. i believe similar to last year somewhat weather related. it's definitely too early to call it a trend as far as the significant weakening of job growth, but the sentiment and on the details and the comments from the survey we picked up on give us no concern there is a big turning of the tide economically or commercial real estate. >> all right. we'll see if it proves to be a leading indicator. thank you so much for joining us bright and early this morning. >> thank you. all right let's take a look at last week s&p winners and losers. stocks to watch at the open car max ended the week up 8%. cbre gained about 7% on news of an acquisition. winstream, genworth and renner noltds american are ones to watch. awaiting approval from the
regulators. >> maybe. there's weird chatter. we're hearing reports that maybe some are not a fan. >> the latest sentiment looks like it is going to go through but we'll see the final decision. take a look what is happening now. american airlines and a lot of airlines lost more than 8% last week. delta lost more than 7%. refiners will be in focus now given the oil trade. >> we want to give you a quick look at the s&p premarket leaders. we have gold getting a lift after the weaker jobs report. free port baxter international all trading higher. a weaker u.s. dollar, stronger gold. >> all right. still ahead this morning on "worldwide exchange." put me in coach. i'm ready to play center field. baseball is here. it means it's time to draft the fantasy team. we're going hit the virtual field and explore the big business of fantasy baseball.
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headlines at this hour. u.s. equity futures continuing to react to friday's disappointing jobs report. the market was closed on friday here. we'll see what happens. futures under pressure as the economy added just 126,000 jobs in march, well below forecast calling for almost 250,000. it's prompting many to push out the first interest reserves interest rate hike. we'll get the meetings from the last fomc meeting. president obama stepping up efforts to sell a nuclear deal in an interview with the new york times, the president sought to rebut criticism from benjamin netanyahu that the deal threatens israel's existence. any action by congress to limit the deal could escalade tensions. tesla motor delivered more
than 10,000 cars in the first quarter. that's up 55% from a year ago. the company expects to deliver about 55,000 cars around the world this year. tesla stock struggled this year on concerns about the failure to hit sales targets in china. shares are down 14% so far this year. let's get a check how u.s. markets may open today. it looks like a down day, at least at the open continuing reaction here to friday's disappointing very disappointing jobs report. the dow indicated to open now 129 points. that number has been moving lower. s&p down about 14. it was down 16 last night at the open. and the nasdaq down 33. we're seeing a sell-off in the u.s. dollar. let's check on treasury yields this morning. on friday the bond market actually did trade and after the jobs report yield on the ten year went below 180. treasures are a bit above that this morning 182. five year note yield 134 and the
30-year 250. >> unbelievable. >> it wasn't so long ago we were talking about 2.5% yield. >> the dollar trading this morning. not as weak as we saw on friday after the jobs report but still weaker against the euro at 109.83. went to 110. we put this in context, 104 was how low we got when it came to the -- >> march 13th yes. >> the dollar is continuing the construction phase. let's look at oil. we're seeing some strength in gold. in oil as well. wti up almost 3%. we're above the $50 per barrel. and brent also up almost 3%. still ahead john and pat are back with their play books for the week. we'll digest the jobs report. we'll talk about how to play in the market. we'll give the industry picks and even name some names. we'll be right back on "worldwide exchange."
ftse cac, dax all in red are closed. australia, shanghai and thailand closed. the nikkie indown marginally. >> thank you very much. back with us on the desk is patricia powell along with john from open . thank you so much for being here early. we're trying to make sense of the reaction and futures. i know i'll get to industry picks in a moment. what we're seeing is lower interest rates, weaker u.s. dollar. >> i think we're back to the earnings issue. i think we're back to fundamental. i think you have to say well you know what is different lower interest rates? we've been dealing with this for a long time. the euro falling apart in comparison to the dollar.
i mean, we've been seeing that for a long time. so this is not new information. >> and just as we get into earnings season we're in the pregame mode john before earnings season. 80%, i read this in reuters yesterday, of companies with negative preannouncements. is the bar being set low so there will be surprises. this is what companies do best. >> i think so. we've seen it for many quarterly earnings reports. my expectations would be we're not going to see a decline of the 5% in earnings for the s&p 500. >> and if you take out energy it looks better. >> i think that's the other thing. if you look at the fourth quarter, for example there were many sectors that actually did better than what might have expected if you look at the s&p 500 earnings. my recollection it was information technology health care consumer discretionary posted good numbers in terms of earnings. >> can we talk about this? the sectors people want to watch the most now.
the energy because of the downdraft we've seen. we've seen for the better part of the year but it's technology financials and health care. those three sectors make up nearly 40% of the s&p 500. so if those three sectors do well, the math says the whole market does relatively well. can we expect pat, to see technology financials health care anyone or all three of the sectors provide leadership going into the second half of the year? >> i think it's you can expect some of it. i think it's going to be a little bit more mixed, perhaps than you do. i'm always a fan of technology because it's -- technology gets you the surprises as to what is happening and some things are always changing in that regard whether you're talking about the kind of technology companies that are bringing new the new payment systems. it's not just are you going to be on apple pay. how does it work? what are the companies that are bringing you apple pay or any of the other like services out there. that's a combination of
technology and financial. >> yeah. it's a good point. to dom's point, john in terms of where leadership. the financial should do well, right. they like the increased volatility especially in foreign exchange. it seems like less headaches in terms of the legal woes. >> i think so. i think the landscape is getting better for financials as we go forward and likely the regulators start letting go of financials as a source of revenue. but what we have to also consider is you still -- they need higher interest rates in the short end of the curve. we need to see that. we consider there would be technology and consumer discretionary that likely will significantly move the market within the sectors. >> higher. >> yeah. >> better. but the s&p 500 overall, we think now, it's a question of the strength of the dollar. near term it's going to affect first quarter earnings and the question will be how does the dollar do?
>> the other question is that banked in. >> very possible that a lot of it is. i think there's a certain amount of the old saying of i'm from missouri show me, show me. >> that's right. >> i think traders are thinking that. i think it's part of the futures action on friday. >> so there have got to be opportunities right now, right? we're no longer near, i mean we're still near record highs. let's put it in context right now. overall we've seen markets kind of tread water, pull back a little bit. there's got to be a reason. there's an idea here that maybe certain sectors certain industry groups bio technology have been beaten up. transportation stocks have been beaten up here. are there stock specific stories or industry specific stories right now that pat, could tell us that maybe, yes, there's an opportunity you should buy this stock or this industry? >> well, i came in with three. and before i say the three, i would like to say they should be part of a larger portfolio and you should ask what can go wrong
with any of these. no stock pick is perfect. i think facebook is something that people should really consider. this is a company that fairly different than it was six quarters ago. six quarters ago it was a lot. hope they were going to monotize mobile and get it together. it's not the company that went public. the last six quarters have been incredibly impressive. a couple of negatives is everybody seems to like it which makes me nervous. and the other thing i remind myself about is my space. >> i remember myspace. >> what makes facebook facebook and myspace myspace. i also like norwegian cruise lines. this has been running on all cylinders. it's a fabulous company. great growth in both earnings and revenue. but as you know you get a
headline story, another costa concordia. ten years ago, there was a cruise ship hit by a 70-foot wave. things are unexpected and suddenly the industry get nervous and stocks can come under pressure. >> both the stocks have been pretty popular. >> very a good reason. >> you say there's more room to run. >> as long as the earnings are coming in the way they are, there's more room to run. as soon as they disappoint you have to run for the as. >> speaking of earnings growth. where is it? >> i think you'll find the earnings growth in small caps. you will find. i believe in bio technology health care -- >> no bubble there? >> i think so you bubbles in pockets and likely you'll find on an individual stock basis. for example, gillad might be a good one in here.
my recollection around 13 times earnings with significant opportunity going forward. in addition to that we have to think that we look at some large cap dividend payers that have suffered somewhat like microsoft, for example. microsoft's dividends well over 2.7%. you have new management that is looking to make the company less of old tech and more -- >> you don't work for wells fargo do you? >> no. wells fargo just upgraded microsoft. >> i had no idea. >> in fact a few weeks ago, we came out with it as one of our picks. it is out performed rated by your analysts. in addition, we look at trends. renner novation as people are more comfortable owning their homes. we like home depot and lowe's.
we like honey well. they were one of the better performers and long-term. >> how do you find out who is hinging their currency correctly? >> i've been trying to dig up the hedging strategies and it is unclear. it's a rather opaque area. >> hedging has two sides. it was just a year or so ago everyone was talking about how what a great job the airlines were doing because they had hedged their oil. >> yes. >> and now it's not looking so good. >> edge hadding can work against you. >> i think we're going talk a little bit later. we have a currency hedger who hedges for corporations. >> sara is getting excited about this. >> thank you very much. coming up where are you in the world and why are you awake?
here in america it's baseball season. the cubs and cardinals kicked off the major league baseball season last night at wrigley field in chicago. for many of your favorite teams it's today, april 6th that's opening day. good news for baseball fans everywhere and fantasy gaming fanatics. it's grown from a niche hobby to a multibillion dollar business. where is the industry headed? let's talk to dan orlo the sports managing director and hot roster ceo. i have to say i'm a fantasy sports player. it's march madness for bracket. there are all kinds of things going on now and baseball is a huge business. what is the state of the business now for fantasy baseball. we've seen a lot of things happen in the last couple of months here. >> good morning. it's terrific to be out of the winter and it's baseball season! i think baseball is going to be an amazing season for everybody. as you know it's probably the second largest fantasy market
out there. about 30 million fans -- probably a multibillion dollar business. the opportunity for growth is phenomenal. and, you know, we're looking at the opportunity. the amazing thing is nascar and how quickly it's beginning to come in. we have an offering in nascar. we think baseball is going to be an amazing season. >> what is it you do? how are you taking advantage of the opportunities and the numbers you're running through on baseball? because to me it seems like where it's fantasy baseball and money it's gambling. >> that's a great question. obviously, congress in 2006 explicitly stated it's a game of skill, and we've looked at this nine different ways. i have a background in law and been before the supreme court. so for us we look at it as a game of skill not a game of chance.
so for baseball players, for the fans, we think it is an opportunity to engage with the game in new and exciting ways. >> what is interesting here when we talk about business, it's not just the size of the industry but who is getting in on it. we heard in the last few days that draft kings, one of the daily fantasy sites got a $250 million investment from the likes of disney. one of the world's biggest media companies is making a huge investment in fantasy sports. what kind of implication does it have for the broader business of fantasy sports overall? >> we think it validates the model for everybody. we think it legitimizes any questions people may have regarding it being a game of skill. there's a great way for people to engage their players, for people like disney investing in the business. that's a terrific opportunity, i'm sure. for us this is terrific because it shows there's an opportunity for companies that want to engage with their customer be
able to deepen the relationship and make sure they invest not just in the brand but the customer experience. business-to-business offer we support we think is a great opportunity. >> all right. your firm draft kings, you got fan dual. a lot of sites have brand names now. they have an early mover advantage. how much competition can actually come into the space? it seems like not many barriers to entry. what does it mean for a business growing fast but the competition grow fast along with it as well. >> for a game sports network which is a mobile first skill based game we think being mobile first ends up being one of those competitive and comparative advantages. it's actually a deciding factor in terms of how you engage with the players, how you engage. the fans want a fast convenient, and fun way to
participate and there are fantasy opportunities. and for companies that want to go ahead and move quickly, it's actually they have to spend a lot of time on a lot of thought in thinking about the brand proposition and what it's going to be. so, you know, there's a lot of excitement around the space and i'm sure that this is just the beginning. not to be cute about it but it's first in its business. there there go. the baseball analogy. we were wondering when it was going to happen. thank you so much for joining us here to talk about the fantasy sports market. another milestone for major league baseball. it's being set today and raising eye brows for the first time the average player salary is over $4 million a year. $4.2 million year to be exact. less spriedsurprise inging, the cubs did lose. let's get to new york city for a look what is coming up on "squawk box." good morning. >> hey joe! i was in cincinnati this
weekend. >> you didn't mention the reds during the baseball interview. i was thinking about you during that. >> i was saving it for you. >> yeah. >> i haven't heard great things. when you said a milestone i thought you meant me being here. >> you're a milestone every day. >> you're a milestone every day. >> how did we get so lucky you came to the camera at 5:49. >> i heard the earnings interview and that's something i'm interested in. give what we're looking at with the futures. that's after friday's numbers. we were here watching the numbers. we had about five people on. they gave us their estimate. no one was down at 120. so, you know, the question is whether at this point since the fed is obviously, at some point, reversing force and may not want to call them tightening. it's only a quarter of a point. that's what it is.
if the economy is not in great shape, it makes you worry. they have thrown everything they've gotten at it and we're stuck in the mud. i don't know what the earnings will show us. march ended. march 31st give them a couple of days to look at the numbers and put them together and i figure it should be any day. and the banks. >> it's wednesday. alcoa on wednesday. >> it's like clock work. >> which gives us something to do every three months. and i'm a little bit focussed on other stuff, too, dominique. i can't say that kentucky deserved to lose i wish -- they didn't shake any hands. >> i can't imagine how many people had wisconsin going all the way. they're a great team. i'm not trying to take anything away. you know how many people in our pool had kentucky. >> which one of your sports fans has a bracket that is in the mix? i have duke winning. >> that's good for you.
>> and i know nothing. >> i haven't had a bracket, you know, and the masters. i know, you saw jordan yesterday, probably. he's got to be one of the favorites, but tiger is going to play. we'll see whether he has the t out of his system yet. good place to come back with the tight lies and 18 -- >> can you imagine? >> they don't call it amen corner for -- >> with cameras everywhere. i wouldn't do it. tiger you apt lot. you -- won a lot. you have the hot skier girlfriend but you can't win if you can't play. >> leave the golf talk there. our next guest said earnings could take a beating. this time from mismanaged currency place. he'll reveal the companies most likely to take a hit. "worldwide exchange" will be right back on cnbc.
good morning. welcome back to "worldwide exchange." take a look how u.s. futures are trading. pretty ugly. reaction to friday's disappointing jobs report where the u.s. stock market was actually closed. the dow looks indicated to open down 135 points. s&p down 15, nasdaq 34. a lot to watch this week. we have the kickoff to earnings season and the federal reserve minutes. notes from the last fed meeting out on wednesday. we're watching the u.s. dollar carefully in the wake of the jobs reaction. dollar weaker it was sharply weaker on friday. this is a big focus on earnings season. costing u.s. companies $18.7 billion last quarter.
that could be a preview for next earnings season. our next guest said that isn't even here here.yet. you have an interesting perspective because you work with companies these big corporations fortune 500 to hedge their exposure. explain about what you do. >> yeah we do at fireapps help companies with technology understand their exposure. the issue about currency it's complex. you have lots of currencies. a typical company is over 200 currency pairs all over their balance sheet and their income statement. and understanding that is where it starts. while everybody focuses on what strategies there are, what derivative products one should use, the more fundamental aspect is what are the exposure. you look to go into the earnings season. euro will have a significant impact. more even so than before.
so corporations want to understand their exposures. what is coming from the balance sheet to the foreign exchange gain as well as how it's going to impact their revenues the cost. they want to understand that. >> we don't have much time. in the interest of time. it give us a few names you're watching that could get hurt the hardest. >> the companies like monsanto isn't going to do well. alcoa i think they'll get hit. they typically have been. you have fiezers companies doing well. and the ceo of google said we understand and therefore we're going to be fine. and the issue here is that earnings need to be predictable. and you mentioned earlier about hedging versus not hedging. sometime it is works sometime it is doesn't. the end of the day, it's having less volatility.
good morning. u.s. equity futures are down sharply right now following the weaker than expected jobs numbers on friday. and we're, you know, are we up for the year? we're right around up. not up. it's been a tough year for what is thought to be a bull market. a greek promise to meet all obligations. athens look to calm default fears. there's a major payment this week that is owed. and rationing into the record books. furious 7 takes in more than $143 million. the most ever for april movie.
one of the top ten openings. it is monday april 6th, 2015 and "squawk box" begins right now. >> announcer: live from new york where business never sleeps. this is "squawk box." >> good morning. welcome to "squawk box" here on cnbc. i'm michelle along with joe kernen and scott walker. attention apple fans it is a big week for you. the company posting a first of series of videos. this friday apple begin taking preorders and let you try the watch on in the stores. the device will be available, finally, on april 24th. one potential catch. c net reports you won't be able to show up and buy the watch without first making an appointment for a fitting within