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tv   Worldwide Exchange  CNBC  July 15, 2016 5:00am-6:01am EDT

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>> new this morning, china's gdp report shows the economy expanded faster than expected in the second quarter. plus markets now, the s&p is trying for its first perfect week since 1998. global concerns and worries derail the rally. it's friday, july 15, 2016 and "world wide exchange" begins right now.
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good morning and welcome to "world wide exchange." i'm sara eisen. >> and i'm wilfred frost in london. last night's attack in the coastal city of nice marks the third terrorist attack on french soil in less than two years. it comes just eight months after the rampage in paris. we'll have the latest on horror that took place on france's bastille day in just a few moments. >> another difficult morning wilfred, but first let's check on the markets for you. u.s. futuring giving back some of the gains. we have gone on though for five sessions in a row. closing at another record high for the dow and s&p. little action in the futures action. dow futures down five. s&p down three. nasdaq down three. a heavy data dump in the u.s. marked by retail sales later this morning. as for the 10-year treasury no yield.
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we have seen them move in the complete opposite direction this week. that has pushed yields up into the 1.50. we're sitting at 1.53 this morning. >> let's check on the markets in asia. the figure showing china economy going 6.7%. slightly better than analyst had expected. the reaction as you can see relatively muted. the shanghai market ending flat for the week. shanghai up around 2.2%. the real gainer for the week was the nikkei up some 9% following talk of more significant stimulus and the yen moving the direction. it's up 7% today. let's look at the european trade. there's been some reaction to the terrible attacks in the
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south of france. not too significant. you can see rights across the screen. less than half a percent. france is down just over a percent. it has been a strong week in europe as well. up 3.4% for the week. germany doing particularly well up around 4% as we stand for the broader week. >> wilfred, the yen's biggest weekly drop in 17 years, really setting the tone of japanese stocks and sentiment around the world. as for the broader market picture right now, let show you the commodity trade with oil down 1%. brent down a percent as well. wti hovering above 45. brent above 46. 46.87. as for the currency market. the british pound having a good week with the introduction of theresa may earlier. 1.3417. continuing to push higher away from the lows ewe saw.
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as for the dollar yen, that's has been the mover of the week. it's going the other way a bit this morning. no, actually weaker japanese yen continuing up to 106 almost. better for the japanese stock market. stronger euro, 1n't 1135 and gold under a little bit of pressure. it's higher this morning, but just barely. still, holding near its highs for the year. now to this morning's top story. at least 84 killed after a truck driver drove into a holiday crowd in nice. ed to forensic investigators are examining the scene and our chief international correspondent joins us now in studio with the very latest. >> thanks sara, at least 84 people were killed when the truck plowed threw people. french officials say another 18 are in critical condition after the attack and witnesses in the resort city described a horrific
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scene. drove up onto a crowded sidewalk and ran down people for more than a mile. police eventually killed the driver. this appears to be the work of a loan assailant and identified as a 31-year-old frenchman. officials have not yet confirmed that. france's president described it as a terror attack and said the nation will extend the state of emergency. he is also calling up rebooks reserves of police. came a day after suicide bombers killed 130 people in paris. france, dealing with this horrific situation. >> i think the third since january of 2015. >> when you include charlie hebdo and paris, and then the two days after charlie hebdo remember the attack on the jewish super market which they put altogether because they believe the same group of attackers. >> and french president hollande out last night.
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a familiar and uncomfortable position for him. they have been stepping up the bombing on the islamic state. >> they have and running this state of emergency ever since paris. it was set to expire: the military teams on the ground there are said to be looking to end it, but now clearly they're going to have to keep it in place. it comes in the wake of a report that came out which was equivalent of the 9/11 commission in the united states. they did it in france on a smaller scale about paris. they felt a lot of those patrols and what they had set up in the wake of it wasn't helping at all and wasn't increasing the amount of security in the country now with the result of what's happened in nice, that's going to focus in on that question a lot more. >> how do you protect people? it's so random. this was a celebration. like a french independence celebration. >> equivalent of. >> and a truck drives into a crowd. it seems like a whole new danger
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that isn't even considered. >> a lot of people have pointed out even without -- there are very strict gun laws. apparently this truck was loaded with arms and grenades, but many strict gun laws, but if someone is determined to do something, they are going to. >> wilfred, absolutely right, very hard to protect against these types of things as you guys touched on president hollande confirming it wassen undeniable terrorist nature. france has really led the air attacks on syria and iraq from a european perspective alongside the united states and president hollande hinted add needing to step those attacks up further. if we look at the market reaction, stocks taking a hit on the news. shares of accor.
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easy jet. france airlines all slipping. down close to 4%. overall, as we suggested, the reaction across the markets not too pronounced other than those specific sectors. u.s. traded airlines that travel overseas also down in premashlgt trade for the u.s. airlines. you can see there around 1 to 1.5%. alongside air france down a little more than that. >> it's a busy day for both economic data and earnings report here in the u.s. session. june retail sales and consumer price index out. that's followed by industrial production at 9:15 and the first v. >> kashkari and bull ard williams. speaking on the economy as well. earnings really heating up.
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we're in the middle of bank earning season. city group and wells fargo reporting before the opening bell. also hear from others. after a better quarter and very well received by shareholders yesterday by j.p. morgan. >> absolutely right. financial performance, s&p. the best performer off the back of that. we'll have to wait and see if the rest of the banks can match it, all banks did so perhaps a little room for them to disappoint today given that. we'll wait and see. investors rushed into domestic shocks in the latest week. seeing their first inflow since late april. according to new data, funds took in money. there was heavy buying of etfs and funds focused specifically on domestic equity. >> the japanese app line
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surging. sharing began trading in tokyo today and the offering was well received there as well. ending the trading day 32% higher. our chart does not appear to be right. it also debuted on the new york stock exchange yesterday ending higher by about 30%. the indian software expor term reporting more than 14% rise. info sis. infosys. the bid for yahoo core internet businesses are due on monday and the board will make a decision soon afterward. this all according to the "new york times." >> con ag ra naming a knew chief financial officer. conagra will take the job at the end of august when the current cfo retires. the chinese internet giant announcing a merger.
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the terms of the deal weren't disclo disclosed, but the new company will reportedly be valued around $6 billion. ten cent up today. >>. xerox rejects donly merger. when we come back, presidential hopefuls in this country react to the tragic attacks in france. we take you to john harwood in washington next. and a passion to build something better. and what an amazing time it's been, decade after decade of innovation, inspiration and wonder. so, we say thank you america for a century of trust, for the privilege of flying higher and higher, together. ♪ real is touching a ray.
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welcome back to "world wide exchange." u.s. futuring trying to hit a perfect week of four straight days of gains. we're looking at slight declines in the premarket right now. we've lost a little bit of steam in the last hour or so. gains we are seeing in asia, but not in europe. europe just below flat. gdp data out of china this morning. you nis joins us now with a breakdown. >> thank you so much. china had a steady second quarter. hinted this was going to look similar to the first quarter. and actually came exactly the same. much of the growth was in the june data. the industrial output and retail sales figures came in better
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than expected. the fix asset investment tapered off a bit. in the property sector that was raising concerns here because the revival in the property sector especially in the large cities has been credited with helping china avoid a hard landing. much of the growth was driven this time by credit as well as an increase in infrastructure spending. in fact what was interesting the private sector investment came in at a record low. that again is raising concerns that the economy might not be so sustainable with the growth. the authorities said today they saw further downward pressure on the economy because of the uncertainty around brexit on the global economy. that the other factor they said was they had decided to release yet another trench of infrastructure spending to the tune of $30 billion which should help offset some of that
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falloff. >> my only question, was this already baked in you didn't see a market reaction. it's been a strong week for hong kong and japan, but really little action in the chinese stock market and currency. >> well, no, i think that it was baked in. a lot of people were expecting to hear that we would see 6.7 or 7.6% so because of that it will market reaction just wasn't very strong. >> thank you very much for recapping the all important gdp number. in u.s. political news, donald trump had scheduled an announcement of his vp pick this morning, but he did cancel the event in light of the nice terror attack. >> this was an extraordinary reaction. donald trump had been all set to announce his vp choice by all accounts according to what senior republicans said they had been told by the campaign and what they had told me was that mike pence, the goemp of indiana, was going to be the
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choice. in fact mike pence had flown to new york to be present for that 11:00 a.m. announcement and after the nice tragedy, donald trump put out a tweet saying i postpone the announcement. we do not know when that announcement is going forward. we do know for mike pence's standpoint, he's the governor running for re-election in indiana, he has to file papers by noon withdrawing from the race if republicans are going to field a substitute candidate for him. so that's one time boundary and the other time boundary of course is the republican convention begins on monday in cleveland so we're going to see how quickly donald trump restarts this process and whether or not he shuffles the deck. there's been a lot of question about the firmness of his decision. he in fact went on fox last night after the attack in nice and said i haven't made my final
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final decision. so we're going to have to see how that goes. hillary clinton of course isn't under the same pressure. she put out a statement saying we stand solidarity with the people of france. >> the vp is quite a different tone from donald trump in reaction to is this sort of terror attack. >> honestly, it's a little bit hard to understand in the sense that you know a couple of political veterans yesterday were saying in a normal circumstances, you would have the candidate and his vice presidential choice come out sdmiet the terror attack and say this is the team that's going to fight terrorism on your behalf. donald trump didn't to that. this is an extraordinary campaign. he decided to put it off and we're just going to have to see what the next move is. this is an unpredictable candidate. >> i would just point out that donald trump tweets say a lot.
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which the first response was very trump esk, another horrific attack, many dead and injured, when will we learn. it's only getting worse. there was that. then two hours later he did put out a tweet saying my prayers and condolences to the victims and families of the terrible tragedy. we are with you in every way. and seems to me to be the tone, the shift in tone from trump as he enters the general election and responding to the criticism he doesn't do that enough. >> yes, and with that second tweet, he matched the tone of what hillary clinton had expressed, but he did when he phoned into the television show on fox last night reiterate i'm the law and order candidate. he has a belief that he's expressed multiple times when tragedies like this occur, and, of course, we've seen them repeatedly in paris and san bernardino and ornd and other
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places. that gav at a tiravitates suppo you've seen that calculation in some polls that donald trump leads hillary clinton on certain characteristics of being president, but overall trailing. in fact we have a new set of battleground polls in florida, virginia, colorado that show donald trump trailing significantly by hillary clinton. so that hasn't worked dramatically for him. of course though is a new event and one that presents the kind of danger. every one of these events underscores a different danger as you all were discussing a few moments ago. driving a truck into a crowd, there's an infinite number of soft targets where something like that can happen and whether this changes the mind set of the american people. the american voter has we head into the election. we just don't know. >> john, thank you very much for joins us this morning. sara, the only thing i would add, of course, on the back of
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that is there are presidential elections in france next we're as well and no doubt, big implications for those elections. >> and the last two attacks, hollande's popularity went up a bit. we'll see what happens as the strategy with the french president is taking continues to seem ineffective as these become a reoccurring theme. i think nine months is the first election there. when we come back, much more on the markets. the dow and s&p on a five-day winning streak. that's actually the best streak of the year. industrials, staples, hitting new highs. i want to give you the weather forecast. >> sara and wilfred, we wrap up this workweek with a front that has gone through the northeast. it was a warm front. it brought thunder storms and warm early temperature. we will see temperatures warming
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up and the heat index will be higher than the numbers you see. southeast heat and humidity. thunder storm will fire again today. memphis area here, tennessee, today will be a drier day for them, but the heat will be on. plus thunderstorms are back into the picture across the front range. if you want to cool off, go to the northwest. go to the great lakes. temperatures only in the 70s. one or two day cool down then it heats up next week. "world wide exchange" continues after this. olay regenerist renews from within.
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so you can be ageless. olay ageless. welcome back to "world wide exchange." making headlines this morning, warren buffett has donated to the gate s foundation. it's part of his plan to give away nearly his entire fortune. 19.6 million shares. he typically makes his donations in july, reducing the number of shares he earns by 5% from the previous dwreyear. the charities usually sell the shares. >> pokemon go has barely been out for one week, but hillary clinton's campaign is using it to their advantage. planning to hold a campaign event at a pokemon go gym in ho
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over the weekend. join us as we go to the pokemon stop in madison pardon me. get free pokemon and battle each other while you register voters and learn more about hillary clinton. she actually mentioned it on the campaign trail as well. go to the voting booths, get out the vote. t-mobile want tots help users catch them all on a budget. the carrier set to offer free unlimited data for one year as part of t-mobile tuesday give aways. ready to catch them all? along with the photo of himself inside the augmented reality game. lots of businesses and even politicians. will frez capitalizing on this phenomenon. >> arrived in london just yesterday was there. in fact in and around when our show started. it's here. i haven't used it yet. a lot of people talking about it this side of the pond as well.
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let's get to sports. phil mickelson continueses to hold the lead. after he began the tournament in nearly historic fashion. he shot a 8 under par with eight birdies. on the 18th hole he had a chance for a ninth birdie. no golfer has ever shot a round of 62 at a major. his put just missed the cup. one of several americans the a the top of the leaderboard, including defending ownership champion, zach johnson. >> we'll have the latest on last night's horrific terror in nice. it is the third attack on french soil in less than two years. stay tuned. "world wide exchange" will be right back. with it, i earn unlimited 2% cash back on all of my purchasing. and that unlimited 2% cash back from spark means thousands of dollars each year going back into my business...
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breaking news, deadly terror attack in nice. the latest on the investigation and if global response, straight ahead. plus, markets now u.s. stocks on a winning week. we haven't seen a so-called perfect week. five new highs in more than 18 years, but will global concerns and gop worries derail the rally. it is friday july 15, 2016 and "world wide exchange" continues now. >> good morning and welcome back to "world wide exchange" on cnbc. i'm sara eisen.
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>> i'm wilfred frost in london. let's get straight to the top story. last night's attack in the coastal city of nice marks the third terrorist attack on french soil inless than two years. comes just eight months after the rampage in paris. we'll have all the details on the latest horror in france in just a few moments. >> first we want to get you caught up on the gloeshl market action this morning. it has been a strong week for stocks around the world. dow futures giving a little back. really little changed ahead of a data dump this morning. dow futures down 2. s&p down 3. nasdaq down 3. coming off positive sessions. as for the early action in europe, taking a breather this morning as we can see declines across the screen. nothing sharp really. not a lot of action. the french cac has been hit the hardest after the attacks.
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some of the travel stocks in what has become a familiar pattern here unfortunately have been hit after the attack. as for the action in asia. the japan's nikkei have a very strong week thanks to the biggest selloff for the japanese yen in 17 years. the nikkei ending on a high note again today. up 9% for the week. hong kong also having a strong week in terms of the market. little change after chinese gdp did come out better than forecast. >> let's have a look at broader markets as well. oil prices have rebounded this week after sharp declines last week. up about 2% for the week as a whether or not he will. just losing a percent of that. net about a week of 1% of gains for the week. wti at 45.26.
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we've seen significant selling of the bond market. yields to pick up. 1.534% on the 10-year note this morning. clearly the move over the last few weeks and months has been one of yield compression. just offsetting that. dollar prices let's have a look at the pound. once again reboupding. had a strong couple of days as the political situation has cleared up a little. theresa may announced her cabinet. the biggest move in the last 24 hours when the bank of england did not cut rates as some had expected. the yen sitting at 106 this morning. gold prices have eased off. now back to this morning's top story. at least 48 kill84 killed afterk
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drove into crowds in nice. reviewing safe measures. joins us from outside the french embassy in london with an update. karen. >> good morning, wilfred. european are again digesting the news of another violent attack on their citizens again on french soil and the third attack since january last year, here at the french embassy, the first order of business was to lower the flags. we saw that after the paris attacks so this morning the french flag has come down, along with the european flag. security has also been increase instead a show of support, not necessarily a security concern, but just to show the local police force are behind the french. we have seen french tourists coming to lay amemorial in a sign of peace, lighting some candles, flowers have also been laid in respect. 84 have been killed and 18
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critically injured. the symbol of peace might be a hope. you've seen initial response from the french president to say they're going to step up attacks on syria and iraq to try to conquer the terrorism threat. we haven't had any official claim from the likes of isis or al qaeda or any other organization behind these ray tax. so far it seems to be a loan wolf attack by a french national. the other response has been to try and show a sign of strong support on the ground. 10,000 soldiers are still beingbeing flo deployed. so many fierce across europe from terror type events. >> thank you very much from that report in london. let's get a perspective on terror now.
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former fbi agent. thank you for joining us. robert, as we all wonder this morning, how do you prevent such violent acts of terror. >> i started with the fbi and i was a dea agent for ten years. if you look how dea worked around the world and took the lead, it was formed in 1973. that's sort of where we're headed now. you think about having the nsa under the u.s. military. you think about jay johnson running homeland security. so right now we have a lot of good investigators, a lot of agents working not only in the united states, but around the world. i think one of the things we're thinking about is taking all of those experts, all of that talent and putting it into one agency. so there's one foolproof agency
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to lead when it comes to terrorism. >> why is france seeing so many attacks, three in the last 18 months. >> that's a very good question. if you look through europe, certainly they're behind in terms of prevention, in terms of the security that they have, and it's a basic formula. it's prevention and intelligence, it's the security, the things you see actually on the street. and then it's the enforcement whether it be drone strikes or arrests. it's like a three legged stool. it works together. unfortunately, in europe, they aren't quite where we are in the united states. we've been able to use homeland security, use the justice department and our military and bring all of these resources with our local police together. i think europe is behind us. they're beginning to look at what we're doing in new york and los angeles and i think we're going to see some major changes. obviously we have to. >> it also underscores the threat of terrorism in the west
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is spreading as the attacks ramp up on the middle east. on the home base, we hear isis is shrinking, it is being bombed, it is suffering a major blow. and yet the sympathizers seems to be out how would you characterize the risk right now. >> everybody agrees, all of the expert, all of the intelligence here agrees isis is not going away. terrorism is not going away. it's unfortunate. i'll be back again unfortunately to talk about the next event. this is something that is going to be with us for a very long time. it's something that we are learning to deal with better all the time. and unfortunately we're just going to have to keep doing the kind of things we're doing. there is no silver bullet here. it's hard work. it's intelligence, it's enforcement, and it's dealing
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with the security on the street. it's not brain surgery. it's a lot of hard work, but it's the only thing that can actually reduce the risk of a promotional terror attack. >> robert, thank you very much for joining us this morning. still still to come, the global response on the terror attack. and stocks on a record round of course. today's test, more bank's earnings. hello watson. your analysis of social media and conversations on various trading floors, helps us uncover insights. insights that help investors predict market closes, well before markets close. you know, your analysis has helped us improve our predictive accuracy by over 500%. 550.2, to be precise, but we can always do better. i like your attitude watson.
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lori. welcome back to "world wide exchange." today's top story. at least 84 people have been killed after a truck drove into a holiday crowd in nice france. >> good morning, that death toll could rise above 84. french officials say 18 people are in critical condition after that attack. there is increased security across europe after that 28 on the truck plowed through people who gathered to watch fireworks. witnesses described a horrific scene after the truck loaded with weapons and hand grenades drove on to a crowded sidewalk running down people for more than a mile. people eventually killed the driver. appears to be the work of a loan assailant and identified the attacker as a 31-year-old
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frenchman. france's president described it as a terror attack and said the nation will extend the state of emergency. he's also calling up reserves to help police. the attack came eight months and a day after suicide bombers killed 130 people in paris. neighboring countries are increasing security. german is tagtening boards. and london saying safety measures are being reviewed. in france there is a strong equivalent of a leave movement. >> it comes right after britain voted to leave the eu. immigration is right up there. there are waves of populism sweeping the countries and france is the second biggest in europe. so this is going to hit the heart of europe. >> andly speaking,
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there was a strong leave movement already headed up there. a politician who said if she's ever the ladder of france, the first thing she wants to do is go back to the frank and get rid of the euro. >> you wonder what the new security laws are going to be when it comes to immigration. they have allowed a lot of my grants from the middle east which is something i can tell you we were both in london. we heard a lot of that as a reason for people voting no and at the same time, the politicians there struggle with keeping people safe because so many terrorists are home grown. >> they already carry european passports, second generation born there so the ability to send them back is not possible. they live there. the issue of home grown terror is an issue. >> thank you for helping us. we are approaching the top of the hour. the team is getting ready for
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"squawk box" in new york. becky joins us this morning and another difficult morning for all of us. >> sara, listening to what you and mitchel have been talking about. so many implications about the terror attacks. we're going to kick things off at the top of the hour with colonel jack jacobs. we'll be digging into that very deeply this morning. we're also going to be talking about what's been happening with the markets. the s&p 500 and the dow both ending at new highs once again yesterday. obviously the future a little weaker this morning. if the s&p 500 were to finish at another high today, it would be the first time that index has done that since all it will way back about 18 years. so following very closely. ovl a lot of things that are happening to affect the markets today, this terrorism creating a huge cloud over the markets. we will be hearing more about what's been happening in earnings. we have several of the big financials going to be reporting
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this morning before the opening bell. we've got city group, wells fargo, u.s. bank corp. and pnc. this will continue to give us a better picture. after j.p. morgan and black rock beat expectations yesterday. we'll be trying to cover all angles of this and how it relates to the market. i'll send it back to you. >> we look forward to "squawk box" in about 15 minutes time. still to come, global markets have a series of issues to digest. gop political concerns and financial earnings among them. wooem get insight from jonathan golub coming up next. you're watching cnbc, first in world business worldwide. provide earth with unlimited clean power. in less than a century, boeing took the world from seaplanes
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the nasdaq around 6 points. of course been a record week once again with various new highs and we are fighting to have the perfect week of five straight days of gains, all be it we're not quite looking like we'll get there at the moment, sara. >> absolutely and focus earnings today. including the consumer price index and retail sales. joining us to talk about where we go from here is jonathan golub. >> guilty or not guilood mornin >> has this rally been as a result of the fundamentals, better economy, better earnings or are you one that says it's all central banks easing the pain. >> it may be something different which is if you look right now at the total yield on stock market, dividends and buy backs, stocks just look unbelievably cheep. that return of capital is just
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forcing people into the stock market and pushing them out of there. >> hang on for a second, we want to focus in on one area of the market that has been doing well, banks. >> absolutely right. j.p. morgan a big gainer yesterday. led the financial sector of the s&p higher. joining us now from the nysc with a look of what's going on today. kayla. >> certainly the market has been hitting new highs by the financials have been left behind. roughly about 20% below their 52 week highs so the high set in just the last year. we did get a good reading for the banks when j.p. morgan reported yesterday. our betting that city group and wells fargo could see some of the bright spots that j.p.
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morgan did. first quarter was largely sdointing they expected profits to be growing. the bank came out and said maybe it wouldn't hit certain targets that it had set for itself over the course of the year on the revenue front we're expecting city group to match $17.7 billion in revenue. they do have a robust trading business, it could be flat to slightly up on the revenue front based on the activity he had seen at that point. based on j.p. morgan result maybe there could be a brexit bump. all the volatility and trading could have helped them. on the down side, city is the most global of all the banks. for wells fargo, wells fargo is the most interest rate sensitive. deutsche bank says watch out for that because its margins have been hit in recent quarters. bank is expected to report 1.01.
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in revenue. they might see a bump for mortgage refinancing as consumers look around and see that interest rates are so low, why not refi your mortgage again. on the same token, the bank welcome making less on those yields. with the rate and yield curve flattening post-brexit, they're going to be lower for longer and people are really paying attention to what these banks are say about the outlook for their growth and the health of the global consumer. back to you. >> of course, the yield curve, as you rightly point out, has flattened greatly over the last few months, but did we learn from j.p. morgan there is still a spread to be earned. bizarrely enough, that small hike we got back in december is feeding through to their earnings this year. >> on the spread side of the business, you are seeing that play out on the trading side. we did see revenues go up sharply there, but j.p. is
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increased. it is hurting their margin so you can argue that it is good on the trading side because people are betting, but on the flip side, on the consumer side, which is what both city and wells fargo have a very heavy hand in, it's still going to be hurting them. >> kayla, thank you very much for that. sara. >> we'll see her later for city and wells fargo. let's get back to the conversation with jonathan galu wurks. do you buy the banks? have they suffered enough pain as a result of lower yields. >> they were talking about how j.p. morgan had this great result. it was negative growth. you had this push down in interest rates. flattening of the yield curve. simply not as bad as it was hoped to be so we absolutely need interest rates to go up.
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if interest rates stay below 1.are1.5 you don't want to own. >> i guess you're not bold enough to do that with so many people have been wrong. rate strategists have had to revise their 10-year yield forecast 100 times. >> it's telling you you're not going to get the interest rates on a bond until 2020. it's a very tough operating environment for the banks. you need higher rates. everybody who has bet on that has gotten burnt. >> you don't need the financials to participate for the broader market to rally to knew highs. >> i wish that weren't the case, but that's exactly been the story. the markets has done okay in the -- actually pretty well in the last five years and the banks have not been a winner on that. and even more so, the banks are so delevered because the rules that keep them out of the
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trading markets and the like, all these regulatory head winds, they don't have the pop to the upside when the economy gets better. >> what about technology, which like financials sort of lagged behind in this rally have made somewhat of a move higher this week. >> right. >> is that going to be sort of the next rotation group to participate? >> if you look at the earning season, there's really two big stories here. facebook and google have brilliant earnings growth rates, but apple which has been the biggest adder to the overall earnings picture for the s&p is now expected to climb by 25% in terms of the earnings and it's expected to be 0 to a drag going forward and so that's a real different story. if you look at the rest of the tech sector, outside of the three of those, is really not much of a story at all, the growth is really quite weekak.
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it's bifurcated between a couple winners and a couple companies having a harder time. >> what does that mean for your overall target and outlook on the market? >> i actually entirely disagree with larry. we put out a note on monday which said weaker earnings, higher multiples and what we actually found in periods where earning of decelerating stock pes are just as likely to go up as they are to go down. they're driven by totally different things. people get confused that earnings are the only story. right now with stocks. volatility being really low, the vix being really low. stocks look attractive even if the earnings are really meager so i disagree. >> there you go, jonathan, rbc capital markets. thank you for joining us as we look to friday's session.
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good morning. terror attack in france again. truck being plowed into people. at least 84 dead, 18 celtly injured and scores of other injuries. we'll have the latest develops. announcement postponed. donald trump's vice president decision delayed in light of last night's deadly attack. and the record rally in the stock market rolls on. the dow and s&p both at new highs. more bank results still going to come our way this way. it's friday, july 15 and "squawk box" begins right
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sglrg good morning everyone and welcome to "squawk box" here on cnbc. i'm becky along with joe kernen. we begin this morning with the tragedy in nice france. at least 84 people dead after a truck plowed through crowds gathered to watch bastille day fireworks along the seaside. the truck was loaded with weapons and hand grenades. it went for more than a mile before police killed the driver. it does appear to be the work of a loan assail i can't. the attacker is a 31-year-old frenchman. that is yet to be confirmed. we are going to have much more on the attack in just a few moments. first let's get a quick run down of the markets right now. take a look at u.s. equity futures. they are relatively flat. this comes a

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