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tv   Worldwide Exchange  CNBC  January 13, 2016 5:00am-6:01am EST

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>> president obama takes more than a few jabs at donald trump. >> tonight's powerball jackpot reaching $1.5 billion. worldwide exchange begins right now. ♪ >> good morning and welcome to worldwide exchange.
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>> our top story oil prices. rising for the first time in 8 days. among reasons the american institute says u.s. crude stocks fell last week dropping by 3.9 million barrels. oil prices right now, up about 2.5% for wti, 31.2. we'll have more on that story in a minute along with what the energy expert told cnbc this morning about where he sees prices going from here. >> but first here's the other big stories. china central bank holding the line again on the currency of the yuan for the fourth straight session. they did come out better than expected overnight on exports. till shares in china couldn't hold on to early gains. they dropped in another late session sell off. but we did see green arrows in the rest of asia. the nikkei posted the first gain of 2016 thanks in part to the weaker yen which we're seeing in today's session. the yen surging up 2% so far for
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the year: that was a concern for stocks everywhere. some relief there in hong kong as well. perhaps the stability of the currency has been reassuring for the rest of the world markets. >> the asian currency did a flip. lots of other china length currencies strengthened. >> good news for stocks. >> exactly. u.s. equity futures taking a bit of strength from the trade we saw in the region. >> over the last weeks cutting out the first two days of turmoil we're only down three quarters of 1% now so it bounced
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back strongly and the dax is in positive territory so quite a quick turn around. >> and importantly the nasdaq broke it's losing streak. and futures higher as well. iran has released the 10 u.s. sailers after they were seized yesterday. u.s. officials saying the small vessels were on a training mission when one of the boats may have experienced mechanical failure and drifted into iranian claimed waters. there were some questions about whether they would be questioned and interrogated about iranian officials that they have been returned and released safely. >> interesting to see the presidential candidates jumping on this yesterday when the story broke criticizing obama for wanting to get into bed with the
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iranians but at the same time how quickly would kerry have been able to be on the phone and get this kind of release? so it was an interesting development and shared the top pages of the papers this morning. >> the other big political story, president obama delivering his final state of the union. in a change from tradition he didn't deliver a long list of proposals. heed about the challenges of the future and the election in november. >> anyone claiming that america's economy is in decline is peddling fiction. [ applause ] >> now what is true and the reason that a lot of americans feel anxious is that the economy has been changing in profound ways. changes that started long before the great recession hit.
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changes that have not let up. >> south carolina governor nikki haley delivered the concern. >> it can be tempting to follow the siren call of the angriest voices. no one that is willing to work hard, abide by our laws and love our traditions should ever feel unwelcome in this country. >> obviously a lot of rhetoric back and forth. we'll talk about this and be joined by two experts on politics and on the economic politics. stan on budget and jimmy on what the president has to do in terms of his unfinished business on the economy. it's one of the themes that was brought up including foreign policy but overall a message of optimism. something that a lot of people
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harken back to the president when he was campaigning in 2004. >> an interesting one to debate. we'll talk more about that later in the show. get in touch with us. our twitter question of the day is has obama's tenure been good for the economy. >> back to today's big story, that would be oil. ihs vice chairman spoke out and said the story is not just about fundamentals here. >> it's not just what's happened in supply and demand which has been, let's say that what happened in 1986 and 1998. this time oil prices are also being hammered by geopolitical factors and by geoeconomic factors. geo political are in the gulf and the geoeconomic of course is the story you have been talking about this morning which is china and what's really going on in china. >> $10 barrel is pretty unlikely. he has written books about this. he looked at the history of oil and politics and geopolitics and
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dynamics. now we broke the $30 per barrel level. something that looked impossible several months ago but when we were in the 29 range during yesterday's session that was a wow. >> it certainly was and crossing that line i think was a big moment in terms of the oil price itself but it was interesting to see the u.s. market start to pick up late in trade once we crossed that line and then of course oil prices ended and we have a bid today and positivity in the european markets. >> even energy shares rallied yesterday. >> for the oil market it was quite a big moment. >> now we crossed that. >> it's got to be the bottom. >> he was ahead of the curve issuing new warnings. the investor that oversees $85
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billion doesn't recommend investments in china any time soon. he's also saying that oil has hit a short-term bottom in credit markets and struggled during the first half of 2016. he thinks there's about a 30% chance of a u.s. economic recession this year. so a spread of warnings there. >> he also said the fed would raise rates two times this year he thought instead of the four that the feds own projections call for. he had a lot of right calls including a lot of people give him credit for the energy decline last year. so everyone was waiting to hear his call on energy. he said short-term looks like we're due for a bounce, in fact he said to reuters yesterday which could be one of the reasons he saw those stepping in buyers which you're seeing in today's session as well but overall for the long haul bearish on oil. doesn't look like it will climb back any time soon. not as worried about the impact on china on the u.s. saying the economies of the u.s. and china are linked less than market
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moves implied. he pointed to last summer and said he thinks that that was an overreaction and the same is the case. now more fed members playing down the china threat. >> absolutely. people are pretty keen on getting quite a few hikes out or at least getting the market to stop expecting that. despite market turmoil in china, starbucks is announcing plans to expand it's presence in the country by adding 500 stores a year for the next five years. the coffee chain ceo saying now is the time to invest in china. >> many people are drawing the wrong conclusion and making a mistake. china is clearly in the midst of a period of transition but it's necessary for the next stage of their development. you have a middle class of about 300 million people that's projected to grow to 5 to 600 million people over the next 10 or 15 years. so people should not mistake
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market moves for economic changes. >> schultz also saying traffic at the chain has remained positive. quite a surprise. >> and quite a notable vote of confidence when everybody is ringing their hands over currency and the economy. optimism from schultz on starbucks. and yum brands also reported better numbers which we'll get to in a bit. >> markets seeming to shrug it off this week. quite a marked change in sentiment. >> i would agree. meantime sales of pcs continue downward in 2015. in fact it was the worst year ever. china stock turmoil along with fierce competition contributed to the declines. this is all according to the global shipments which totalled 275,000. that was a drop of more than 10%. more bad news for the pc industry though there are
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predictions that it could rebound a bit this year. >> i'm so behind the trend on this one. i'm still a pc man. >> i'm still a pc man-woman too. >> i can't bring myself to go to apple. i can't do it. >> why not? >> i tell you what, main reason because at work we still have pcs and run on windows and i don't want to have different operating systems at different places. that's still one of the main reasons. >> maybe tablet. >> there you go. >> you are millennial. >> exactly. let's get a check on what's on the economic agenda today. the monthly beige book is out at 2:00 p.m. eastern. this is in the regional districts. also we get the monthly federal budge rate from the treasury department. and the chicago fed president both speaking about the economy later today. >> every day brings new fed talk on the economy. some stocks to watch for you today, metlife planning to separate a significant portion of the u.s. retail business. the company says it's evaluating
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options including an ipo or spin off or sale for the business. shares jump sharply in the after hours. yum brand says the same store sales rose last month. that was where the streng was. yum is in the process of spinning off it's china business this year. and watch shares of chipotle today. the fast casual chain scheduled to present at the consumer conference. the stock briefly dropped below $400 a share yesterday for the first time since back in august 2013. the median analyst price target now 495 which has come down a long way from the 767 just three months ago on all the companies problems. e.coli, noro virus and investors are wondering when can you step in and buy as a bottom. that's not insight.
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>> not in the stock price. so many of them around the city i was surprised to see that. >> are they empty? >> no, i haven't. it's the mind set. >> a mixed quarter for railroad companies csx. revenues sell short. profits were hit by a drop in freight volumes. they will weigh on results in the coming years. shares as you can see down 2% this morning. declaring a special $1 billion supplemental cash dividend. also offering a 2016 profit forecast. but the cfo expects higher costs this year as the company invests in new model launches and technology driven ventures including autonomous vehicles. that down around 1.2% in pretrade. tractor supply is cutting it's forecast. the company is -- says unusually
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warm winter weather hurt sales of its cold weather goods and that itself is down 1% in pretrade. >> when we come back your trade of the day plus a live report from london as the european action picks up steam with gain across the board. and start catching our attention this morning. how michael dell could make billions from tv. that's what caught our attention. we'll tell you about that story next. cnbc first in piz worldwide.
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u.s. equity futures pointing to a higher start today. s&p up 8.6. nasdaq up 22. oil is rising. the chinese currency has stabilize and the world is a calmer place in global markets right now. we do have breaking geo political news this morning as well. iran tv reporting that iran has released the ten u.s. sailors detained after two u.s. navy boats were seized yesterday. the small vessels were on a training mission when one of the boats may have experienced mechanical failure and drifted into iranian claimed waters. >> trading action underway in europe. let's head to london and check in on what's happening with the lovely louisa. >> don't you miss us? don't you miss the european markets over here? especially when they're bouncing. we're a little bit higher this morning. we were called up before the early traders came in to play.
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we saw strong close on the european markets yesterday as well. delicate buy ago cross the board. the xetra dax and cac and ftse mib in italy. bigger stories around. the biggest winner today has launched a share buy back program and hiked it's 2015 dividend ahead of an investor meeting taking place in london as well. up by 12%. a big rally coming through out of holland for that company. tullow oil higher by 12%. the stocks soaring some of them this morning after this particular company says it has enough cash reserves now to weather a lower oil price environment and then when moving on you're looking at sainsbury lower by almost 2%. they're underwellhelming and th move the new strategy is working despite the fact that we're looking at trading out of this stock today. it's a very big macro picture
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we're looking at at the moment. and they're testing the waters to see what kind of a year 2016 is going to be and whether or not we'll be lead by china and whether or not the focus is going to start shifting guys. >> louisa thank you for that positive back in europe this week. >> now to today's trade of the day, with oil break beg low $30 barrel yesterday for the first time in more than a decade some traders say this battered commodity could catch a break that we're seeing in the action today. our data team crunched the numbers to find out if oil is poised to bounce back based on historical market reaction. it turns out for the past 30 years after decline of 15% or more. crude rose by 3% in the following five days. but after that decline but the odds of a rebound only stand add about 60%. for more you can go to and check out cnbc pro. this is oversold as we have been hearing from a lot of energy traders and experts in term of
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the price decline every single day in 2016. except for today we'll see if that lasts and so far the move, the gravity has been toward the down side. >> and every period of the last two years when people thought that has been the bottom. >> it can't go lower. the fundamentals don't add up. >> it starts to go down side again. keep an eye on that. also coming up here on world wie exchange, lotto fever. a live report from one store in illinois where buyers are lining up next. but first as we head to break nbc's grant johnson joins us with today's business travellers forecast. grant. >> good morning to you. we're looking at potential weather delays in the northwest. surprise here. more rain. san francisco, portland, seattle, yeah, make sure that you check your carrier if you have a flying out on the west coast. this is not tend of it.
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there's a series of storm systems to bring more rain in the coming days. watch how little that system moves today. rain and snow in the mountains. meanwhile to the east could see some snow around the great lakes. otherwise it's just the cold weather that's really in place. sunshine through the south. high temperatures will be quite cold in the northeast. teens, cleveland, only 16. new york city at 30. boston 29 degrees. wilder weather in the south. across texas 60s in dallas and houston. denver at 50 and out toward los angeles 61 today. phoenix 66. more on worldwide exchange after this.
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people across the country will be hoping that lady luck is on their side tonight. the jackpot is now $1.5 billion. nbc's jay grey joins us live from illinois. don't they realize that it's 1 in 300 million chances. >> don't they realize i already bought the winning ticket so save your money. it's not worth it. now, look, across the country and markets like this one thousands will be pouring in. they'll get some coffee and a soft drink and they'll get a snack and by the way they'll also get a shot at about $1 billion or so. >> there has never been this much power in powerball. >> this is $1.5 billion. >> the largest jackpot ever. >> this is historical.
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this is something you can't wrap your brain around. >> but lines do wrap around gas stations, shops and markets across the country right now. >> crazy. >> everybody wanting that winning ticket. >> some even crossing the border in the six states that don't play the game. >> we had a phone call that someone was going to be bringing up three charter buses full of people to buy lottery tickets from us. >> plans of what to do about the money. >> nice vacation. open up another business. >> are as plentiful as the number of people scrambling to get a ticket. >> well, 7 kids so college number one. >> if i could buy my whole family houses. >> it's one of those things where you can buy an nfl team. the fantasy is what you can do with it. >> fantasy fuelled by whatever it might take to win. >> i got my good luck tie on so hopefully once i get my numbers. >> i clicked my heels together three times. >> i have been having dreams about stuff like this. really. i have been having dreams about
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winning this. >> dreams shared by millions hoping they have the six numbers that will make them all come true. >> let's talk about the odds here. more than 292 million to 1. you a better chance of being struck by lightening or crushed by an asteroid. i've never heard of that happening. being elected president, becoming a music star and being cannonized by the pope. but what i'm saying, we still have a shot. we still have a chance here, back to you. >> like so many americans. >> we still do. i love this. our lotteries are like 3 million pounds, 4 million pounds. >> well we usually don't get this kind of excitement. this is a record for the united states. >> it's good timing and i bought one saturday. i'm going to buy one today. i hadn't realized the queues were so big. >> it's fun to fantasize. >> i was walking around west
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village. i'm going to buy a townhouse. >> don't forget you have to pay half in taxes and you have to get it staggered out because otherwise you only get 930 million if you get the lump sum. experts say don't do that. >> tonight we have a cnbc special. jackpot the richest lottery ever at 7:00 p.m. eastern time. a great little preview of the lottery. los angeles will be home to an nfl franchise. they vote to approve the rams for next season. they both left the nation's second largest media market after the '94 season. the vote comes after years of negotiations. the rams owner plans to build a $2 billion stadium in englewood. an l.a. suburb that's the form
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hoerm of t er home of the hollywood park racetrack. >> we were unsuccessful of trying to get something done that would meet the standards of what we expect for l.a. what the entertainment capital of the world expects an what we want to deliver to our fans in los angeles. >> we understand the emotions involved of our fans and it's not easy to do these things. they are purposefully made hard. but we're here today. we made a decision and worked long and hard at the various alternatives. >> giving the san diego chargers the right to join the rams in l.a. if they can workout a deal in the stadium. as one of the lowest revenue teams they play in one of the oldest stadiums, the oakland coliseum. >> it's odd and sad for the
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fans. >> emotional. >> stan owns the team i support arsenal and better not move the location of that. there's no way it would ever happen in england. >> don't touch arsenal. top stories including reaction to last night's state of the union address. stay tuned. you're watching worldwide exchange on cnbc. there's no such thing as a little flu. and it needs a big solution: an antiviral. so when the flu hits, call your doctor right away and up the ante with antiviral tamiflu. prescription tamiflu is an antiviral that attacks the flu virus at its source and helps stop it from spreading in the body. tamiflu is fda approved to treat the flu in people two weeks of age and older whose flu symptoms started within the last two days. before taking tamiflu, tell your doctor if you're pregnant, nursing, have serious health conditions, or take other medicines. if you develop an allergic reaction, a severe rash,
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dropping below $30 barrel for the first time since 2003. >> president obama shares his vision for the country's future and take mrs. than a few jabs at donald trump. >> and golf has a new money king. we'll tell you who dethroned tiger woods. it's wednesday, january 11th, 2016 and you're watching worldwide exchange on cnbc. ♪ >> among the stories front and center today oil prices rising for the first time in 8 days. among the reasons, the american petroleum institute says u.s. crude stocks unexpectedly fell by dropping 3.9 million barrels. china's central bank holding the line for a fourth straight session. meantime chinese data coming in stronger than expected overnight. still they couldn't hold on to
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early gains dropping in another late session sell off but we did see green arrows across the rest of asia. let's have a quick look. given the gains in europe today we're pointing to a positive open for the u.s. trade day although not too significant. almost 2% of gains. the u.s. futures pointing to slight gains. there they are. open by 53 points. break news, iranian tv reporting that iran released the 10 u.s. sailors detained after u.s. navy boats were seized yesterday. one of the boats may have experienced mechanical failure and drifted into iranian claimed waters. >> president obama was elected in 2008 on the promise of hope and change. the president tried to rekindle that belief saying the country shouldn't allow election year fears and partisan divide to put national security at risk. >> it's one of the few regrets
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of my presidency. that the suspicion between the parties has gotten worse instead of better. i have no doubt, a president with the gifts of lincoln or roosevelt might have better bridged the divide and i guarentee i'll keep trying to be better as long as i hold this office. >> joining us from new york, executive vice president and national director of financial communications and also former senate and house budget analyst and in washington, the economic policy analyst at the american enterprise institution and cnbc contributor. stan, you're a fan of the president's speech. the message of optimism, did it resinate with a divided an fearful america? >> probably not. he was speaking to a limited group of people that were willing to listen to him but it was a sharp, you know, change from what we have been hearing on the campaign trail and i think that's what the president
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ju wanted to do. he wanted to let everybody know that things are not terrible. get your head up and let's get moving forward. >> is there anything we can expect in terms of progress as a result of the speech whether it's on the policy agenda or progress for mrs. clinton? >> heading into 2016 it was probably going to be a fairly light policy agenda. if the president could get his pacific trade deal passed i think he would call it a day and mark it off as a great year. he didn't have a huge policy agenda in the speech because he was not going to get a lot passed. the trade deal and maybe criminal justice reform that would be fantastic so more of a theme speech. defending his record over the past 8 years as well as highlighting the challenges yet to be met. >> weren't you surprised at how defiant the president was? that without using names he took on republican candidates and let people know if you think i'm
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weak i'm the guy that took out bin laden. >> he always says that. >> well, but it's the kind of thing he hasn't reminded people. in fact, what's most interesting to me is the cabinet is going to disperse around the country for the next couple of days doing something they have never done before which is actually validate what the president was saying. >> the president has a bit of a lift because listen 6.5 years into an economic recovery 2-thirds of americans think we're on the wrong track. so the president is trying to remind people where we have come. relitigate his record and say things are better than you think while at the same time trying to acknowledge the anxieties. when president clinton left office and president reagan left office more than half of americans thought america was doing great. that's not going to be the case when barrack obama leaves office. >> jeb bush tweeted the word safe question mark. how can he say america is safe.
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whatever he achieves in his final year, will foreign policy be what he is left with and a negative thing. >> in contrary to what jimmy was saying i think history will look kinder at him and his economic plans and accomplishments than is happening currently. certainly foreign policy will have changed during this time. the threat to the country is different but remember what he said last night. he said that, you know, yes, we have got people trying to get at us but they're not a threat to the future of the country but they are a threat and they have to be dealt with. >> final quick question. i want to ask about the comments we heard about donald trump or implied comments. how strong do you think obama's feelings are against him. >> you can say this was politics. he's trying to elevate jump because he'd like to see him be the republican nominee. maybe that's true. it's more likely that barrack obama is personally repulsed and
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wanted to make a point of highlighting that in his speech. >> we'll have to leave it there. thank you very much for that. joining us early this morning. the only other point i'll make on this is differ to the queen's speech we get in the u.k. it's written by the government that already have a majority in the legislature so it does tend to correctly point to what is going to happen. >> but she doesn't have to get her party reelected. >> but what i mean is obama can -- and he gave a smaller list of what he's trying to achieve and he can give that list and none of it happens if congress is against it. >> correct. >> so it's interesting. we have so much focus on the state of the union but it's not always a great indicator of what's to come. >> correct. we're asking you about president obama's economic record which he touted in the speech last night. has he been good for the economy? yes or no. we have all seen articles and surveys about millennials saying
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those 18 to 24 are materialists that want to delay settling down and buying a home and it's impacting our economy but a new report suggests we may have generation y all wrong. landon joins us with the new findings. >> we all know the stereo types but this new survey suggests that some may have jumped to the wrong conclusions. it's not the bike share racks high on their priority list. in fact they want the same things as older generation with priorities ranked as career, housing affordability, amenities and what a company does or sells is more important than community service. affordability is at the top of the list. not because they don't want to put off buying a home or having kids. they just can't afford it right now. they're looking for career advancement opportunities and want low crime areas and diverse population. the high cost of live as good a
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major hurdle for the modern generation. washington is the most expensive city at more than $100,000 a year followed by new york, san francisco and boston. they're attractive because they have jobs that offer higher incomes but that's offset by the cost of basic housing, taxes and goods. >> for companies out there that want to keep their attention, what's the best way to go about that? >> traditionally the work place thought they want the fancy coffee machines and comfortable couches but they have been marketing all wrong. what they really want are the traditional things t job growth opportunities, the low crime rate areas, the museums, the parks, more so than the bars or something like that. they want tradition. they want to grow up. they just can't afford it. >> my sister is a millennial and she just wants a free lunch at the office. >> we all want that. >> thank you. on a new survey on millennials. now to top trending stories for
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the first time in 13 years tiger woods is not golf's top money maker. in 2015 it was this guy, 22-year-old jordan spieth. he earned more than 53 million on and off the course. a big chunk came from under armour. tiger fell to number 3 bringing in $48.5 million behind phil mickelson. i argue that this is actually very good for golf because tiger woods hasn't opinion on his game in quite a long time. he's had injuries and all sorts of things. spieth has been a rising young star and this is something that golf needs as it's had a delining and aging audience. >> rory mcilroy coming in behind those three and he slipped in the last couple of years but still one of the young up and comers. right the other next trending story the hate david bowie is headed for his first ever number one album here in the u.s. black star was released on his 69th birthday and could sell 130,000 by tend of the week.
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i haven't town loaded this new one yet. maybe i need to. >> you need to. >> have you been listening to it. >> but i think it's crazy that he put out an album days before he passed awayment i was wondering what was going to unseat adele. >> the senate blocked rand paul's audit the fed bill which called for tougher oversight on the banks. he tweeted disappointment at his colleagues for missing the vote especially ted cruz. on the upcoming fox business debate on thursday he was kicked to the under card debate which he doesn't want to do. so he very well says he may not show up and now the audit the fed bill which he took on from his father didn't get a lot of support which is also a problem considering fed bashing is very popular on the republican campaign trail. >> absolutely right and i can imagine it must be really insulting to be demoeted from
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front line to second line in terms of the debate. right disney announced its first theme park in mainland china will open this june after a decade of planning. it was originally scheduled to open in 2015. the delay effecting significant restructuring and political challenges. that's an interesting open. coming shortly after the launch of star wars in china. i bet it will do well. >> there's a lot of people and it comes at an interesting time. we just watched the dichotomy between corporate america betting big on china and it's middle class and the growth story and the consumer story at the same time where investors in the short-term are worried about the strength of the economy. >> and so important as well to separate the size of the economy. corporate zbeting exposure and it's different than how markets react to relative performance of gdp growth. >> they're still betting big. look at stars. adding jobs.
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adding stores. going all in. when we come back this morning's must read. discussed as president obama's economic scorecard. we asked you on twitter, the president's tenure has been good for the economy. has it been? 58% of you say yes. keep voting. we want to see if the majority of you still think that president obama's tenure has been good for economy. tweet us. you're watching cnbc first in business worldwide.
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now to today's must read stories. the op eds that stand out and caught our attention. the editorial take on the president obama speech last night. his last state of the union. they're critical t. tight southern land the obama legacy project. it first looks at the economics and on the achievements writing that the president's defenders blame slow growth on republican opposition yet they point out he has achieved most of what he saw on the economy. he passed his stimulus. he raised taxes. >> the stock market is up and things are getting better but usually after such sharp, deep recessions the bounce back should be bigger and a lot of
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his policies have been hurting growth. >> what i find quite interesting is the biggest has been the fed and the fed would have done the same as it's done whether he was in power or the republicans were in power. >> bush appointed bernanke. >> and the second thing that's really interesting is you could suggest that we're on a cycle and the obama administration hasn't done much to change it. he got a lot of heat for not fixing the economy quick enough. compare that to david cameron's government in the u.k. that came fouer two years later. the global already started to reach a bottom and he gets much more credit for turn things around than obama here because he had the first two or three years before it turned around. >> this also goes after him saying his tenure has been marked by the rise of vladimir putin, iran, china and other places in the middle east. obviously the nation now is focused on terrorism and concerned about that and for that they don't give him high marks.
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they say the ultimate moment will be whether he's able to mobilize the party to vote for mrs. clinton. >> we'll have twiet and see. we're approaching the top of the hour and that means joey, becky and andrew are getting ready for squawk box. becky join us. we have been asking people on twitter whether obama's tenure has been good for the economy. 55% saying yes. is that something you would agree with becky? >> i don't know. you have to look at it from two different perspectives. try to figure out how far we have come and the missed opportunities along the way too. that's something we'll be talking about today on the show. we have a plethora of guests lined up to talk about this at the top of every hour and we'll be talking to colonel jack jaco jacobs. you have been following the news of the release of the ten americans this morning. we'll talk about that and also talk about the messages of safety and security from the president's speech last night. and guys i know you been talking
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about the markets a lot today too and one of the things that jumps out at me is the idea that this far into the year as we're looking already at the 13th of january, we are finally seeing the bulls put a few points up at the board. oil prices up for the first trading session of the full year. you're looking at finally the nasdaq yesterday posting a positive session for the first time all year and we have some big guests to talk about some of the markets this morning too. john from goldman sachs asset management is going to be here and i saw what you guys were doing on the lottery. i want to show you guys this book too. he is going to be joining us to talk about the lucky years today and no this is not about winning the lottery. this is not about how to make your fortune but i'm really excited about this interview today because this is all about how we are living in incredible times scientifically and what that's going to mean for health and longlongevity. the idea of being able to increase and having a longer
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life span. losing weight effortlessly and managing cancer. joe was talking about how we are living in some of the most lucky days and the best days coming around and we're going to talk to this guy about it today. if you could be born in any time would it be today or a different time. >> 1985. right again. couldn't be better. >> you love who you are and you love being here. >> probably the luckiest kid is the one born today because we're making so many scientific advances and we'll talk to the doctor all about that. >> we look forward to that. answers to those questions. better perhaps than winning the powerball. coming up at the top of the hour. >> when we come back oil prices rising for the first time in 8 days. u.s. equity futures are following suit. is it safe to dip back in? we'll talk about it when we come back on worldwide exchange. , we can help guide your retirement savings. so wherever your retirement journey takes you,
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we can help you reach your goals. call us or your advisor t. rowe price. invest with confidence.
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joining us is the portfolio manager and founder, thank you for joining us in studio. let's talk about what happened. do you think given what we're seeing in europe and u.s. futures today similar to what we have seen this week a bit of green, that we're past that asian hang over in week one? >> i don't believe that to be the case at all. yes can you see back where the markets go up another $5 barrel and perhaps a 2 or 3% rally but overall underweight risk at this juncture. we believe that global growth is decelerating that the emerging markets in general has been 75% the contribution of global growth and that's going to be farlower than everyone is expecting from that perspective. global trade is going to be disappointing overall for 2016 and as well earnings are going to be flattish. >> so we closed yesterday about
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4% away from the august bottom. last august when things were so brutal. do we have to make new lows there before you can step in and buy. >> yes. >> we're underweight risk at this point within our asset allocation portfolios as well as our i inquiequity strategies. in the consumer stable markets and we would be sharpening our pencil when it comes to the oil markets. we have been bearish on oil for the last two years. we start now taking a careful look at that. >> consumer discretionary did well last year. do you like it still? >> we still like it. we like walmart for example or tj max. you can get 15 to 20% upside. >> why walmart? it's like the most hated stock. >> that's the reason why i like it. >> and now it's shooting up. >> because what you have there is a turn around situation. all of the bad news has been priced in. they reset their operating
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margins an gross margin expectation. everyone ran away from them and all you need is a growth and improvement. >> 20 seconds left. one of the top pick stocks you like. >> dr. pepper and hershey's as well. >> you're defensive. not looking for growth. >> no, we think you can make money there. we would be moving up the spectrum and don't hide if you start to see a fracture within the financial system. look at high yield if you get the real sell off of risk. >> that's a bold call. >> thank you. >> thank you for joining us this morning in studio. >> that does it for us here on worldwide exchange. coming up tomorrow, the chief global political analyst at city. all the political risks for investors this year. have a great day. we'll see you back here tomorrow. squawk box picks it up next. it's hard to find time to keep up on my shows.
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>> his vision for the country's future and the biggest regret of his presidency straight ahead. and the rams are returning to los angeles. the chargers could soon follow. nfl owners approving a new $1.8 billion stadium in inglewood. squawk box begins right now. ♪
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>> live from new york where business never sleeps this is squawk box. >> good morning, everybody. welcome to squawk box here on cnbc. i'm becky quick with joe kernen and andrew ross sorkin. the american petroleum institute says u.s. crude stocks fell last week dropping by 3.9 million barrels. of course with all the gains oil prices up 92 cents to just 31.35. brent crude up at 31.74. take a look at the u.s. equity futures. they're higher as well with dow futures up 43 points above fair value. s&p futures up by 7 and the nasdaq up by 20 after gains yesterday. >> let's tell you about the other big stories we're watching this morning. president obama delivering his final state of the union address


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