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tv   Worldwide Exchange  CNBC  July 28, 2016 5:00am-6:01am EDT

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ready or not, here comes a flood of earnings. it's the busiest day of the reporting season. names like amazon and alphabet leading the way. plus your money, your vote. president obama takes the stage to make a pitch for four more years of democrats in the white house. it's thursday, july 28, 2016 and "world wide exchange" begins right now. >> good morning and welcome to
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"world wide exchange." i'm sara eisen. >> i'm wilfred frost. very good morning to you from me as well. >> it's throw back thursday. we're throwing it back with a girl powered theme today. i hope we have some spice girls coming up. >> anything to get the spice girl sboos "world wide exchange." >> let's get straight to the top news. a ton of earnings this morning. if you went to sleep early last night, here's what happened at the democratic national convention in philadelphia. president obama taking center stage in prime time vouching for hillary clinton and making a point to say she would protect democracy from home grown demagogues like donald trump. >> no matter how much people try to knock her down, she never, ever quits. that is the hillary i know. that is the hillary i've come to
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admire and that's why i can say with confidence there has never been a man or a woman, not me, not bill, nobody more qualified than hillary clinton to serve as president of the united states of america. >> vice president joe biden also targeting trump in his address. >> no matter where you were raised, how can there be pleasure in saying you're fired. he's trying to tell us he case about the middle class. give me a break. that's a bunch of malarkey. >> former new york city mayor michael bloomberg also urging americanss to vote for hillary clinton and unite against trump. >> i'm a new yorker and i know a con when i see one. zamericanss
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clinton and unite against trump. >> i'm a new yorker and i know a con when i see one. americanss clinton and unite against trump. >> i'm a new yorker and i know a con when i see one. tech certainly the outperformer. apple reacting to earnings having it's best day in two years. looks like things are pointed higher. here's you wall street setup. nasdaq lagging. dow futures here up 36 points ahead of a raft of earnings and some economic data. as for the 10-year treasury note, little reaction after the fed came out with a statement that pointed to the strength of the economy, but really did liltd to move the needle in terms of expectations. >> seemed to confirm it's possible for this year, but not imminent in the market. >> they left their options open for sure. >> we moved already in the market on the yield curve away from brexit lows and that's why it stayed around 1.5 yesterday
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and today as well. let's have a look around the world. european equities right now mixed as you can see, but essentially flat apart from italy and spain, the big forces, germany, france and uk not doing much. been doing all right this week. have been in positive territory, only to the tune of 1%. the bank of japan beginning a two-day policy meeting. of course today big expectations tomorrow in terms of what they may or may not do in terms of easing. no real movement in hong kong and shanghai at the moment. the nikkei and the yen will be the eye of the storm tomorrow as we get announcements from the bank of japan. >> as for thehe broader market picture. the nikkei closing lower. the two move in opposite directions. that pattern has been very much alive. can we get up the currency board here to show you what's happening. there it is. the euro is stronger.
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the dollar actually weakened a bit on the back of the fed yesterday. that continues this morning. british pound 1.3185 also weaker heading into -- still below 1.32. we've been lower than that. so hovering in that range. as for the price of oil, oil has been under pressure. let's show you where we are this morning. seeing wti crude up for a change. up only a quarter of a percent. it is off. gold quickly let's just show you the gold trade: weaker u.s. dollars give gold a busy of a boost. 1.1% in the action. >> today's corporation story, facebook and revenues driven by strong add sales growth. ceo mark zuckerberg on the conference call talking about what's next for the company. >> ten years ago, most of what we shared online was text.
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now it's photos and soon most of it will be video. we see a world that is video first with video as a heart of all or acts and services. over the past six months, we've been particularly focused on live video. >> joining us now on the cnbc news line, it really was a stunning report. so many numbers to digest. we've got global media. i'm looking at the numbers. they really are staggering. 1.7 billion people use facebook monthly. 1.1 billion use it every single day. what number stood out to you. >> i think good morning sara. i think it's the combination of the scale of users, 1.7 billion was an acceleration from prior quarters. that's a 15% year on year growth. and the other metric that we keep in eye on is the user engagement the amount of time people sent on facebook, but
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also the other sites, like instagram et cetera, and the growth there was actually double digits. so first you need to get the users then you need to get the advertisers to monetize and they're doing a great job on those fronts so far. >> how much further is it for them to go on the video front. we know the shift has been towards video. one of the reason twitter has been doing poorly and facebook has been doing well. have they already take tennessee low fruit or is there many more areas of growth in the video front. >> i don't think so. i think it's still relatively early on video. advertisers have still been experimenting with video and remember the $150 billion is still done on tv. on the internet we think that is maybe in the $10 billion range. so we still have a long way to go. the other thing is i want to format. we think facebook has been the most innovative companies in
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terms of coming up with formats that perform well for advertisers be brand or direct. even in terms of formats we're still relatively early, but do i think facebook has an edge there. >> going through some more numbers. ad revenue up 63%. mobile ad revenue up 81% thachlt is 84% of the total revenue from facebook. it's also in such stark chronic trast contrast to what we got out of twitter. what are the implications for alphabet which is also in the ad business out later this afternoon. >> that's a good comparison right there. twitter or facebook has become the ep thinks of twitter p. we think alphabet is going to be somewhere in between sew obviously alphabet is a lot more mature company. they've been in business for 17 years og so. we think they're advertising business is going to grow in the
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high teens, maybe 20% range. again compare that with twitter, that's guiding to single digit growth in the second half. the 80% growth that you've seen out of facebook mobile. so we think google continues to grow really fast, but certainly facebook in part because it's smaller. in part because they're very innovative. is growing faster, but facebook and alphabet remain our top pick. >> facebook is up more than 30% this year. how much more room is there to climb. >> you go barrack to the fundamentals and look at the valuation. whether you look at the free cash flow. this thing is trading below the growth rate. it's trading at a pe to growth less than one. it's trading around 25, 26 times. we think that's very reasonable. so this morning we've taken our price target to 160 from 150. we think there's a 20, 30
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upside. >> so if you were late, make not too late. thanks for joining us this morning. those numbers really blowing people away. i think cramer tweeted kaboom was the word. >> because there were already such high expectations and facebook tlidelivered again. >> sticking with tech, nearly a decade after its launch, apple announcing it sold the 1 billionth iphone. saying in a statement that iphone has become one of the most important well changing products in history. no comment from apple on where the phone was sold. would have been fun. >> if you did get it and you knew it, you would probably go kabo kaboom. i wonder if they told the customer. >> now to today's agenda, there are a few pieces of economic data you should be watching.
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weekly jobless claims thursdays. that's followed by the monthly survey from the kansas city fed. today is the busiest day of earnings season. more than 60 companies in the s&p reporting. look for con co-flips, ford, amazon and alphabet will be the head liners. have beaten estimates, but only 56% have topped revenue expectations. which brings us to our twitter and facebook question of the day in honor of twitter, facebook, and all the other tech earnings we ask which company has the best growth outlook. we gave you three choices, facebook on the reaction this morning, amazon and alphabet out after the bell. weigh in we'll bring you the results after the show. >> we get far more responses on the twitter page. may we need to do a facebook
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video. >> as we have already mentioned. amazon is one of the big names reporting earnings after the close today. landon dowdy joins us. >> looking i don't understand the numb beyond the numbers here is three things to watch. amazon prime will be key. fresh off the prime event was the biggest day ever for the company. analyst say they expect prime based sales to chibt to growth into q 3. take a look at the stocks. up 23% in the past three months. seconds, aws. web service expanse is expected to drive second quarter earnings. aws revenue is forecast to be up more than 50%. the third thing to watch is jar
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gin pressure margin pressure. >> that profit number is going to be so key. landon, thank you. among today's biggest stock movers this morning, grow upon shares surging as it reports a smaller second quarter loss and raises full year outlook. groupon adding more than a million customers. ceo on "squawk box." that's a first on cnbc interview at 8:40 a.m. eastern. kir rasm look at the reaction of 20%. whole foods profit falling for the fourth straight quarter. same store sells slip amid competition at the high end. the super market giving a weak forecast for the current quarter and sharing declined more than 5%. iac interactive. the daily beast adjusted earnings in revenue missing
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forecast. >> whole foods so much better. >> the quality is better and the prices when you rack it all up, steams to me to be less. >> they've been working hard on price. i like it here. the produce is better. >> yes. >> than trader joes. >> we could talk about food all morning. >> definitely could. gold corp. reporting a second quarter loss. production rose by nearly a third. it received were about a third lower. diageo reporting sells. the maker of johnny walker whiskey and smirnoff vodka expected to grow.
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it's up 1.6%. ceo will join sara later this morning in a first on cnbc interview. that's at 10:00 a.m. eastern time. we'll certainly be watching that one. the brexit related drop in the pound: terrorist attacks in europe and the failed coup in turkey forcing customers to cancel holidays. the stock is up 5.6%. earnings not as bad. >> it's always one of the first places we look where we see reaction to these tragedies. when we come back, european banks in focus. profit at credit suisse and better than expected results. we'll hear from executives from both companies next. >> tonight don't forget to tune in for complete coverage of the dnc including hillary clinton's prime speemp. that's why i have the spark cash card from capital one. with it, i earn unlimited 2% cash back on
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welcome back to "world wide exchange." we are expecting a higher open on wall street. yesterday we saw the dow decline a little bit. the s&p and the nasdaq rise. right now as you can see expecting 31 points of gain for the dow. european trade at the moment is broadly flat. if we just quickly look at the main mover in asia today. we did see the nikkei decline
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1%. all eyes will be on japan overnight as we get the results of the bank of japan meeting. significant easing expected perhaps that might disappoint a little bit. >> yes, that decision coming later tonight. two major european banks reporting results this evening. credit suisse. nancy joins us from paris with some of the highlights and interviews. >> reporter: good morning. i'm pleased to say we can bring you some good news here in paris when it comes to european bank performance specifically around that i had did struggle to the french retail business.
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largely due to the volatility we've seen. i had a chance to speak to the cfo and asked them how they were coping with weakness in the french retail. >> it is true in france there is the low interest rates. secondly that is a bit in all of our domestic markets in the first half year. demand for market products has been limited. market haves been a bit volatile so our retail kouss have been shying away from it. this is what weighed on the top line. if you look at france, you saw a reduction in the cost of risk. so that is what we will continue to manage. >> there you have it there. the cfo saying every cloud has a silver line fg you will. when it comes to the low rate environment, that translates to a lower cost of risk for them. that is good news when you look at overall results upsetting some weakness of the volatility.
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when you look at the thick revenues those were actually quite strong. the rewards for the european banking executives belong to those who can manage risks in the uncertain environment. it was the similar story at credit suisse. ambitious turn around plan and he talked about the nesht uncertainty and how the bank plans to manage going forward. >> we're continuing to push capital towards areas where we believe there is profit growth. we are continuing to increase resilience in a difficult environment. everything we're doing is the right strategy even from this environment. >> there you visit, talking about the strategy going forward there. the ceo of credit suisse however investors not overly convinced this morning the stock has dipped in the neighborhood of 2%. where we stand in paris it is
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good news coming from bnp. the next risk event will be the stress test due tomorrow. >> thank you so much for that. one other big name reporting this morning, lloyds. more than doubling year on year, but the lender announcing it will cut 3 thousand jobs. the brexit will hit the uk economy in the upcoming months. lloyds very uk centric listed back in london is down 4% this morning. >> what's the status of italian banks. we're so worried about them after brexit. it seems to have quieted down. >> the eye of the storm is bank monte dei paschi. >> the oldest bank in the world. >> yes. >> they're due friday. 4:00 p.m. eastern time so 9:00 p.m. local and europe. >> got it. other stocks to watch, pioneer natural resources reported a
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smaller than expected loss: revenue rose 22%. the oil and gas company is boosting the full year production targets. marriott second quarter profit rising nearly h4 percent. go prosecond quarter revenue falling 47%, but still that was better than forecast t. camera maker shipments rising 8% and go pro ses it's still on track to launch new camera and drone later this year. shares got a bit of a release. when we come back, smorts news including the start of the pga championship today. >> which you're very excited about. as we head to break, national forecast from the weather channel. >> good morning. once again more thunderstorms a big chunk of the ohio valley will be your forecast this afternoon. and even some of this could be strong and severe. maybe to baltimore.
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philly chances in scattered storm there is. also watch lg right here across the high plaines, denver. in terms the of temperature still hot across the southwest. la still above average chlgts no rain in cited. not good news for the wildfires. meanwhile plenty of 90s and prance the last hot day across the northeast. cooler weather is on the way for the weekend. right now, stay tuned for more of "world wide exchange." cathy's gotten used to the smell of lingering garbage... ...in her kitchen yup, she's gone noseblind. she thinks it smells fine, but her guests smell this. ding, flies, meow
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welcome back to sports. the pga championship being held in springfield new jersey. it's the second time the course has hosted the event. the world's best players will be facing off. dustin johnson, jason day, and two time championship winner rory mcilroy. >> it's going to be hot. >> the date was moved forward because of the olympics. >> i'm betting on rory mcilroy. >> are you actually betting on him. >> it's illegal to bet in this state. >> one of today's top stories including facebook. catch us up with the social network ceo. she spoke with an executive last night. we'll have highlights next. ...coach gilman used his cash rewards credit card
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good morning. investors like it. facebook shares sore to all-time high. we'll hear from the company's cfo coming up. don't blink, a parade of earnings. the busiest day of earnings season. plus your money, your vote. the democratic convention highlights from president obama, vice president biden and michael
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blo bloomberg coming up. your watching "world wide exchange" cnbc. >> good morning and welcome back to "world wide exchange" on cnbc. >> this was always my favorite brittany strong. >> did not know that. >> i loved this one. >> i liked a lot of them. >> it's throw back thursday. >> i haven't introduced myself yet. >> a very good morning to you from me as well. throw back thursday let's check on the global markets. >> let's do that indeed. futures right now pointing higher. all be it in muted fashion. we're looking around 23 points again for the dow. s&p called higher by 4 points. nasdaq by 17 points. yesterday was flat. s&p was somewhere in between. let's have a look at european trade. we just flipped into the red slightly.
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germany, france, uk just below flat. bigger declines for the likes of italy and spain. we did have green on the skreens about an hour ago. lost a bit of momentum. asia trade, not much happening in hong kong and shanghai. many people expecting the yen to move the opposite direction as we get the results of the bank of japan meeting. expected to ease. the risk is they don't ease as much as the market is expected. >> which happened last time. as for the broader market picture, oil getting a bit of a boost here, but still it is below 42 dollar as barrel. and, in fact, those gains that we saw, fractional gains just reversed. 41.80. that gets your attention. the energy companies have been under pressure as oil heads south again. brent 43.09. it is off a full percent. as for the 10-year treasury note yield. it was sort of a quiet one.
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1.50. we've seen yields move a bit lower. the dollar actually declined. that was the biggest reaction to the fed. nothing extreme, but a weaker dollar continue this is morning against the euro at 1.10. the pound continues to sell off and the dollar weakness as wilfred mentioned against the japanese yen. that is helping to boost gold a bit. quickly let's show you gold and there we are. 13.4080 up a percent. >> right today's top corporate story. facebook shares moving higher in extended trading. easily beat expectations on the top and bottom lines. joining us now with a look at what's driving those results. julia. >> facebook surpassed wall street expectations across the board, making more money from each user than ever before. the company showed 59% revenue growth to $6.44 billion. 94% earnings growth.
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facebook cfo david waner warned that with coming tough comparisons, refvenue growth wil slow. ceo mark zuckerberg talked about all the potential ahead as video takes center stage. >> soon most of it will be video. we see a world that is video first. with video at the heart of all of acts and services. over the past six months we've been particularly focused on live video. >> >> another factor driving fas book's growth is the addition of 10 million small businesses. the company finishing the quarter with 60 million businesses. 3 million of which are advertisers. >> more than 80% of our new advertisers start off with just simple page posts they end up boosting with a little bit of money. they learn how to do it the same
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way they would create content as a user. they see the value and willing to invest the money from there. >> levy as well as fas book ceo talk a lot about working with marketers to making effective video adds. >> on the call asked about pockman go and reheard not only does mark suckerberg play it, but interesting comments on what they're working on in terms of apps. what did we learn there. >> in terms of augumented reality. they talked about how oug meantmeant augmented reality. he said they're starting to see a ton of small businesses post and advertise about how they're
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pokemon stops and find characters at their small businesses. people are using facebook to promote pokemon to drive in store sales. >> a lot of people commenting on that. julia, also, clear focus on that bite we just listened to towards video over the last quarter and moving forward. the other clear area of focus in the numbers is this the purely a mobile app or stock in software. much more so than on traditional pcs and anything like that. >> facebook's adds when they're on mobile devices, they're more valuable to users. therefore they can charge more for them. facebook is converted to being a service. that's been very beneficial for them in terms of revenue. those adds work better. they're not on the side. they're not cheaper less valuable adds: they're sponsored content within the news feed people are more likely to engage
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with. >> you covered twitter. what a day to go from that report though this report. they're trying to go after the same users and advertisers. what is the big distinction. the contrast was pretty stunning to see. >> well, there are two very different businesses. the thing that's been most notable covering this companies over the past many years is the fact twitter's growth has stagnated. for a while it was growing slowly. now it's stuck. if you look at the size and scale of facebook in comparisons. it's striking. 1.7 billion monthly active users. well over a million of them use the service daily. twitter won't even release it's dafly active user numbers. i think two very different services. on the of people like myself who use both of them, but facebook has become sort of something like e-mail. everyone uses it. people use it to keep up with their friends to figure out what friends are talking about and
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maintain those weak ties as well as their content with strong ties. i think what's really distinguishes facebook is the fact they have all of these different tools. they have instagram, message, what's app, they have a bunch of different services even within facebook. you can share with everyone or share with a small group privately. >> a quarter of the world's population is on facebook. thank you very much. live for us this morning in san francisco. >> we are on the wrong social media. we spend on twitter. >> we're going to up our facebook game. >> it's already excellent. if you're not following, you should be. >> true. >> stocks to watch this morning, am gem posting an inhelp the opposite story for earnings fall by 22%. key cholesterol drug. is up 1.4% in london trade.
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cheesecake factory reporting better than expected profit. the revenue estimates still the causal dining chain is upping the stock buy back plan. veering away from earnings, china is life insurance firm which is run by the grandson inlaw. taking a 13% stake in sotehby's. a 1% move today. >> now to politics, last night's democratic national convention featuring speeches from former new york city mayor michael bloomberg, president obama, and hillary clinton's running mate, tim kaine. tonight chelsea clinton will introduce her mother who will formal formally accept the nomination. >> the head line from president obama was the moment when he said he's ready to pass the
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baton to hillary clinton. president obama sort of giving a keynote speech here on his own presidency. what happened last night is the democratic party brought out all of the star power in their political party and some star power that's not from their political party. let's start with tim kaine. the running mate who used the attack dog role that vice presidents get so often to really tear into donald trump. >> he says, believe me. well his creditors, his contractors, his laid off employees, and his ripped off students did just that and they all got hurt. folks, you cannot believe one word that comes out of donald trump's mouth. not one word. >> and then here's the guy who is not a democratic, mayor
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michael bloomberg of new york city, the former mayor there, an independent, former republican, of course. billionaire in his own success going after donald trump in terms of his business credibility. here's what bloomberg said. >> i'm a niew yorker and i knowa con when i see one. >> tough language there. then you had barack obama hugely popular in this hall as well. popularity rising across the country as well. obama sort of laying his own presidency in the context of what hillary clinton can do as well. taking the optimistic note a little more soaring rhetoric. he was critical of donald trump to make v name him by name. here's the president. >> there has never been a man or a woman, not me, not bill,
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nobody more qualified than hillary clinton to serve as president of the united states. >> reporter: and in the reaction shot there, you could see bill clinton standing and applauding to that line b even though the president saying bill clinton wasn't as qualified as his wife is for the presidency. we'll see whether or not the american voting public buys that argument of experience in a time when a lot of people are looking for an outsider. then this moment. the hug between president obama and hillary clinton. you can see her husband looking on there. that is a moment between two tomorrower rivals who are now joined at the hip politically. hillary clinton is going to be depending on president obama's star power all throughout this presidential campaign. the clinton folks say they want president obama out on the campaign trail on her behalf. they recognize what he can do for them. and we'll have to see whether that's enough to turn the tied of the donald trump who has been rising in the national poll so this one is neck in neck coming out of the conventions.
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the big question is whether the democrats will get the same kind of a bump. >> you said it there, starp power. we've seen lots of people with star power talking to the convention during the week and perhaps the person i've heard most about was earlier in the week, the first lady, marcell ozuna -- michelle obama. >> let's be honest about hillary clinton. her stump speaking style. she is not the kind of car ismatic figure that barack obama is. she doesn't have the ability to electrify a crowd the way he does out on the campaign trail. so there is the danger for the democrats that she comes out and is a little bit flatter tonight than we saw last night from the president himself. that said, i think that is a problem that the democrats would rather have than not have at this point. to have nose figures they can put out on the campaign trail between bill clinton and the guy we didn't even talk about this
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morning, joe biden speaking last night as well. so many big names up there. we didn't even play a sound bite of him in the segment. yi gis you a sense of all the assets. downside they could outshine the president. >> he did use his favorite word, malarkey. >> biden did. >> much more coming for the convention throughout the day. make sure you tune in. 10 eastern for the completely coverage of the rest of today's agenda. including hillary clinton's prime time speech. still to come, the must reads.
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welcome back to "world wide exchange." stories catching our attention in the wall street journal . famously george w. bush's campaign. on the republican response to last night, the democratic bash won't matter, he says. speeches wednesday by president obama and vice president joe biden were equally unlikely to help mrs. clinton. instead they added to the impression she represents a third term for their policies, especially is as far as they
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stole their administration records. the more they claim the economy is good, the country is strong and the world is safe, the more disconnected they appear to swing voters. that is a sediment i couldn't help, but think. it's tricky because there's so much frustration and discontent even alongside the progress president obama has made. we'll see when the polls start coming out within the next few months whether this argument is right. the star studded political speakers of the democratic national convention were affect ichiro or n -- effective or not. the as far as earlier in the week when it was michelle obama, bill clinton. they have powerful speakers. no doubt about that. we're approaching the top of the hour. that means the team is getting
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ready for "squawk box." joe kerning joins us. i wonder whether you are more excited about hillary clinton's speech today or the start of the pga's. >> what caught your attention today in the papers, wilfred? >> we didn't have time. >> so we didn't do yours. >> we haven't done mine, but we are much more excited. >> do you want my time? >> we want to know who is going to win the pga. >> that's a good question. course looks great. it is hot today. hot and dry. i think there's some rain tomorrow. the fourth major, big trophy. i don't know jason day won last year year. i was unable to stay up. i need sleep. we need it. you know, for our health, our mental health, for longevity,
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for weight. you gain weight. and it is a double edge sword. i have missed a lot. i have missed a lot. i've missed the nba finals. i've missed thursday niegtd football, but then there's other times it cuts both ways. i was unable to stay up last night to see all the speeches too. in everything there's a silver lining maybe. i think this fed thing, i like it. so we're at new highs. right. so now they're back to saying maybe things are aligning for a rate hike in september. before the election, number one, please. and number two, they don't really care about markets. they're not really -- that's not what qe and accommodation is about, increasing asset values. that seems like the only time they think they can raise after a good stock market or they're disinclined to raise if there's a selloff in the market which is a weird way to run fed policy.
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anyway, we will be. >> i think it's called financial conditions, joe. >> well, stock markets action is a leading indicator i guess, but it just seems like a lot of times in both the action they took the boost the market and in deciding whether to raise rates or not has to do with how solid the market looks. the market looks pretty good. anyway, i'm be -- wilfred, i'm sorry you were unable to -- if you would have done it, what would have been. >> we didn't get it to. we knew we had a tight show. >> i want to know what caught your attention. i watch this segment every day and i really want to know what caught your attention. >> it didn't catch my eye. there was too much politics. and i thought we can't overdo it. >> the facebook conference call we read this morning in the makeup chair. we also looked at the transcript from obama and biden and
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bloombe bloomberg. joe, we'll see you at the top of the hour. >> fed signaled unwillingness to raise rates this fall. gym o'sullivan next.
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good morning jim. fed on the agenda. when do you think we get the rate hike. >> i've got them going to september. it eight weeks away. we'll get a lot between now and then. it's certainly possible they go in september. in the numbers and the markets are supportive. they're showing a lot of caution so a better bet is december. >> what could trip that up, jim, what if we see a big selloff in the markets between now and then on some external shock or something going on overseas. >> we have seen that before, of course. we expected them to be moving already this year.
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so the markets matter in terms of financial conditions. the financial conditions are tightening. the stock market is falling sharply. there's much less likelihood they go. or if we suddenly get much weaker employment numbers that happens as well. i'm assuming the labor market continues to improve. the inflammation numbers are moving up. they go ahead and ultimately tighten, but of course there's no guarantees here. >> jim, earnings seasons have been sufficiently good to allow the markets to hit new highs. is that strong enough or is that just based on low expectations. >> well, markets are forward looking, of course. and the weakness in profits, the decline in profits has been arguably more accounted by two things. number one, of course, the drop in oil prices. the energy sector has been hit. number two the rise in the dollar, which is fading at this point. if you take those two things
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out, it would appear profits would continue to rise. oil from the dollar is still there, but it fades a bit and, certainly, the drag from oil should fade as well. >> markets are looking for profits to go in the year ahead. >> the fed, given they put 2016 on the table and city group put out a note saying expect easing from the bank of japan as soon as tonight. possibly from the enc in august. and the dollar won't strengthen. >> in the ends the markets didn't do too much for the fed. i don't think yesterday's statement even though the initial as soon as the statement came out at 2:00 was more hawkish than expected. in the end didn't change muslim
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yesterd -- yesterday. >> that is it for "world wide exchange." have a lovely morning. ja "squawk box" is coming next. gilman: go get it, marcus. go get it. ...coach gilman used his cash rewards credit card from bank of america to earn 1% cash back everywhere, every time. at places like the batting cages. ♪ [ crowd cheers ] 2% back at grocery stores and now at wholesale clubs. and 3% back on gas. which helped him give his players something extra. the cash rewards credit card from bank of america. more cash back for the things you buy most.
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facebook, mark zuker bank of america -- rallying behind hillary clinton. president obama gets a talk in the main event. what was that in the sky, a mysterious light going across northern california. what was it? something else. we'll tell you in a minute. it's thursday, july 28, 2016. and "squawk box" begins right
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n now. >> good morning, welcome to "squawk box" right here on cnbc. i'm andrew along with joe kernen. kayla is with us for the day. facebook is front and center this morning. they topped estimates. they did it big time. driven by strong ad sales growth. 1.7 billion monthly active users. today is the busiest day of earnings season with more than 60 s&p 500 companies reporting. rb come can go up after the close, we're going to hear from alphabet, formally google, 56% have topped revenue forecast as well. it's a little top and bottom line action. >> a

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