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tv   Worldwide Exchange  CNBC  August 10, 2016 5:00am-6:01am EDT

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good morning. tech is back. the nasdaq powers to a presh showing investors to put a risk back into the mix. disney magic. did the media giant make subscriber problems disappear. your money, your vote. donald trump was he misunderstood or out of line. it's wednesday, august 10, 2016 and "world wide exchange" begins right now. good morning and welcome to "world wide exchange" on cnbc. i'm sara eisen.
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>> i'm wilfred frost. good morning from me as well. let's check on the markets this morning. we eked out gains yesterday. >> eked is the right word. >> eked just barely moved. you can see the action is minor again this morning, but we are seeing green arrows on the screen. dow futures up 15. s&p up almost three. nasdaq up 5.5. tech as you mentioned has been the outperformer. 10-year treasury yield. lower yields have really happened lately. we are seeing lower yields again. we've come off 1.57 where we were yesterday. buying of treasury, buying on stocks both assets rising in tandem. this is a global fe no, ma'am
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non. european equities let's have a look at those. pretty much flat to mixed today. good start to the week. we did have a decedent performance in asia and europe. today you can see a little more mixed. germany down. germany into bull market territory. yesterday up 20% from february lows. of course a bumpy ride since february to get the gains since june. entered bull market yesterday. the bank of england meanwhile running into problems on the second day of its new bond buying plan. the boe fell 52 million pounds short of purchase target. we heard in the last our it will make the shortfall from yesterday's uncovered auction in three to six months time. that was a small percentage of the total it was buying
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yesterday, but highlighting of course that these qe programs late in the day aren't that easy to execute. people had thought it would be years easier to execute. the bond buying the bank of england was forced to do just domestically has brought yields down across all of europe as people search for yield. let's show you what happened in asia overnight. hong kong which has been on fire closed at an eight-month high. that strarkt has been doing well. shanghai closing lower by .20%. same thing with nikkei ahead of a public holiday. mountain day holiday. traders will be taking a long weekend to potentially looking at a slight strength in the japanese yen and selling off that stock market. as for the dollar, strength n. euro, strength in fact japanese yen. watching that one carefully.
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the japanese yen stronger by half a percent. the euro at 1.1147. it's interesting. it shows traders and investors are expecting an interest rate hike by the fed any time soon. they're looking at a slow and steady path leer because the dollar is weakening. >> the pound had a good day yesterday. it's bouncing back again today. they're not really pricing in any rate hikes on the other side of the bargain. >> as for commodities this morning let's have a look at those oil prices kbryesterday w a little softer. soft fwen today. 42.17 for wti crude. we had a couple decedent days of stability above the 40 level. gold prices up a bit today. just shy of 1% the gain. we're at 1358.
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>> today's top story. disney posting a huge profit held by box office hits jungle book, finding dory. did help offset sales of cable unit. as for disney's share prices, under pressure to the tune of 1.2%. they did run up into the report last night. the big surprise disney announcing a billion dollar investment formed by major league baseball. disney ceo commenting on the move in a first on cnbc interview with our very own julia boursen. >> we think it's a good investment. the ability to stream on a scaled basis live sports and live programming is a competitive advantage and something that's necessary. we love the user interface so overall we look at it as an investment, but as a partner, as a part owner and ultimately as a
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majority owner, we feel it gives us an ability to jump start not only espn, but our other business as well. >> joining us now on the cnbc news line to discuss the disney results, ivan fine seth. good morning to you. >> how are you. >> we're doing okay. we're trying to figure out disney. shares under pressure. does this do anything to elooefluate investors concerns which seem to be consistent about espn despite what were solid results across the board for disney. >> it was a good quarter. it wasn't a great quarter. the studio performed very well. that came in more than 200 million in revenue. there were slight falls in parks revenue. consumer interactive and their media network or their cable tv, but i think, yes, this is a good
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move. it puts them in the streaming business. it allows them to offer espn as a stand alone service or add it to more skinny bundle services so it's an opportunity to gain back subscribers on the platform, for example, on the internet, not just on tv so hopefully this will start to change the trend that has existed in a slight decline in espn over the past few quarters. >> is it a bit late in the game for that or did they come to this fast enough. >> i don't think it's late in the game. it would have been better if it was earlier, but who knows if this opportunity was available earlier. it's the right thing at the right time. and companies have to transition away from businesses that are not their strength to areas that are their strength or make them their strength. i think it's the right move at the right time.
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down 8% this year. if you zoom out on a longer chart, it's a moon shot. what's the short-term and long-term vision for disney stocks? >> it has not been a great year for disney shareholders. i think longer term they have to be able to monetize or better monetize all the value they have and their key value is in content. content is king no matter what kind of bundle package you have on your cable service or how you watch things, whether you're watching on a giant screen, on a computer monitor or even on your phone. you have to have content and content is king and disney is the king of content. they keep coming out with new franchises or rebooting old franchises. the jungle book was a big hit. there's probably nine different versions of the jungle book movie they've come out with over the years. dory was a huge hit.
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the way frozen was a hit. they have the ability to create tremendous content and people watch things over and over again. they'll go to the movie. then buy the dvd. >> but investors aren't giving them credit for that. >> that's where the disconnect or the opportunity in the stock is because eventually overtime they are continue to monetize these things. for example the way the studio gets monetized is people like the movies. gets them to go to the park. gets them to by other services. there's a huge hay lo effect that exists for the products that make you want to buy other disney products. >> that's been the iger strategy. we'll see if he can turn around. ivan thanks for joining us. here's what's on the agenda today. retailers will take center stage. before the bell reporting earnings. wendy's before the bell and shake shack after close. on the economic front at 7:00
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a.m. look out for weekly mortgage applications. the job openings for june is out at 10:00 a.m. eastern. and 2:00 p.m. eastern the treasury releases. on the earnings front, you mentioned shake shack. it reports second quarter results after the bell. landon dowdy joins us with three things to watch in the shake shack report. >> here is what's shaking. shake shart report earnings of.13 a share. beyond those numbers here are the three things to watch. first after a decedent start to the year, results could be off to a slow start as the restaurant environment gets more difficult. watch to see if the burger joint can continue the momentum. shares are down in the past year. rebounded more than 20% since the previous report, but remain well off last year's peak. restaurant recession. people are spending less money eating out.
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and believe that was mostly due to the intersection of the chicken sandwich. third thing to watch. plans for expanding: other places like mcdonald's have been cashing in on a morning menu. see if shake shack has plans to offer an egg sandwich. yelp shares soaring. posting a surprise quarterly profit and it's now raising the full-year revenue forecast. up 11% in the premarket. sun power getting crushed this morning. the solar warning of challenges. including aggressive pricing by new competitors. 1200 jobs. the stock down 22%. mie plan is backing it's full year forecast. off slightly in the premarket this morning.
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when we come back, your trade of the day. tech heavy nafsdaq is on a roll we have your best bets if the index can continue to climb. see what history has to show. we'll be right back on "world wide exchange." to fit you andr budget. with unique features, like claim free rewards... ohh! customized home protection extra features all at an affordable price! i'm going to live in this. in means getting more from your home insurance with an expert allstate agent. it's good to be in, good hands. we're drowning in information. where, in all of this, is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you don't. you partner with a firm that advises governments and the fortune 500,
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yesterday. they were bigger gains yesterday. we didn't end on them. other than the nasdaq which did close at a new high and as we look at things right now, we're looking at a 0.1% gain in the premarket. >> now to today's trade on that note, wilfred, as the risk taking returns to markets that tech heavy nasdaq outperforming. our data team crunched the numbers to search for the best trades if the nasdaq keeping climbing here. the results point to bio tech. jumping along with the nasdaq as for the tech names that do well, apple, amazon, and google parent alphabet are the best contribut contributors. just historical data. now to some global news, brazil senate voting to replace rousseff on trial over
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allegations she committed fiscal crimes while handling the budgets. that subpoena expected to take place after the olympic games and decide whether rousseff is to be removed from office if she's found guilty former vice president and current acting prosecute, michel temer will remain in office, until 2018. as for the currency it has been strong. what you're looking at is a chart of the u.s. dollar against the brazilian currency. sit the strongest and best performing currency of 2016. there is optimism the economy has hit bottom and a change in the political regime would be good for business. still to come on "world wide exchange." hiemts from last night's olympics events. michael phelps winning 20th and 21st gold medal. extraordinary stuff. we'll bring you a live report
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from rio. but first, here's today's national whether forecast from the weather channel jen carfagno. >> good morning. big changes out there and big humidity. going feel different compared to the great whether that you've had nice kind of crisp mornings. those are gone. humidity coming back and bring the chance for thunder storms. some could be big soaking rain thunder storms. southwest we have more continuing right along the gulf coast, florida, louisiana, all going to see heavy rain. the southwest also will because of the monsoon. moisture continuing to return there. storm ls and possible severe weather up into the midwest and the heat is on. excessive heat warnings continue to expand today. from dallas, texas all the way to kansas city. temperatures will feel like 105 to 110 and that starts to get to a dangerous level. plus the humidity turning more uncomfortable all across the
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eastern half of the country. "world wide exchange" continues after this.
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welcome back and good morning. let's get you up to speed on the market this morning. future points higher just barely. dow futures up. we're building on gains. s&p up 3.had4. nasdaq up 6.8. closed at a new high. we'll get some minor economic
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data points today. including mortgage applications and the labor report on layoffs and quit rates. also retail earnings including michael kors. now to the olympics. if you went to sleep early you missed some great moments in rio. joins us live from brazil with all the highlights. good morning to you, jay. >> good morning sara. running out of ways to describe this american team, if you hadn't noticed. usa doing really, really good in the olympics and they're making the rest of the world notice by owning the medal stand early in the games. last night no difference. what about the gymnastics team. final five. last time there will be five competitors. they go to four after these games. they dominated. it wasn't even close after the second apparatus. they were so far ahead they had the gold well in hand, but they continued and really just
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crushed the competition last night winning their gold. the second gold for women's gymnastics in a row last olympics and now these olympics. they move on to the individual competitions and should be very tough there. in the pool where the americans have also had quite a splash here, if you will, i couldn't resist, michael phelps avenging one of his losses four years ago. beating his south aftrican riva and adding gold medal number 21 to his medal count. katie ledecky the 19-year-old swimming super star grabs another gold as well. it's just been a terrific run here in rio. >> power, grace, and gold. >> i'm so happy to be a part of this team with all these incredible girls. >> reporter: the final five as they dubbed themselves leaving no doubt they were the best in the world with the simply
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dominance performance in team gymnastics. while the most decorated olympian ever added medals 20 and 21 to his collection. ajenging a loss to rival four years ago and joining the teammates to take the 4 by 200 relay. and katie ledecky find gold for the second time in rio. >> it's great to see team usa racking up a lot of medals here. >> reporter: the u.s. team will be looking for another medal tonight in the mens 100 free style. >> back in the pool tonight. not a medal at stake. it's a qualifying piece. kerry walsh and april will be back in volley ball. real quickly, i wanted to say yesterday i saw a british athlete doing really well in something. i don't remember what the sport was. i'm not sure how it finished
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out, but i did see a britain doing very well here in rio. >> i know you're saying that sarcastically, but i'll take it and we're going to come through strong at the end. of course you guys will end up with more because you have a six times bigger population, but we're going to come through. >> i'm not sure it's based on population. >> let's not muddle this with the numbers. okay. >> i'm not taking anything away. the performance of team usa has been outstanding. >> especially the gymnasts. >> mr. phelps. i love the butterfly. and the final tally count we do have for the medals the u.s. coming in first with nine golds and a total of 26 metals. number two is china and then hungary. australia and russia. don't see great britain in the top five or top ten. it's in 11th place behind
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thailand now. one gold it looks like for your country, three silvers and two bronze. >> is it going to be like this every day. >> i'm just teasing. >> clearly it can't be can the uk beat the u.s. >> can the uk get a different gold. >> done. we definitely will. move on to politics. donald trump raising controversy. suggesting this time the people who back the second amendment could stop hillary clinton. >> reporter: the question now, what did he mean by gun owners can stop hillary clinton. ? did they mean they should vote? did they mean sha should use their weapons. trump says it's ridiculous you would take this as inciting violence.
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the immedia the. >> if hillary appoints justices of the supreme court, you're going to have a lot of problems folks. >> that's how donald trump toned it down after democrats reacted to this. >> if she gets to pick her judges, nothing you can do folks. although the second amendment people, maybe there is. >> what he meant by that was, you have the power to vote against her. >> that's not what democrats heard. >> violence is not something anyone should do. >> senator elizabeth warren tweeted it's a death threat. saying trumps words could -- it even got the attention of the secret service. clint east campaign called trump's comments dangerous, but the candidate is clear focusing on money to fight the zika versus. >> i would very much to the best of your knowledge leadersh-- le
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of congress to get the bill passed. >> >> reporter: he's asking the commission on presidential debates to change. >> now, there is no indication the nfl is going to do that. what they are saying is that debates sites should be ready to set up the third podium. three people. hillary clinton, donald trump and jill sign the or gary johnson. >> can't believe that second amendment controversy is what the debate is at this stage of the race. no matter what it was. tracie potts. thank you for the update for washington this morning. when we come back. top stories on the move. media giant reporting better than expected. buying a big stake in video streaming company. stay tuned. you're watching "world wide exchange" on cnbc. it stinks in here. you've got to wash this whole room
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good morning. earnings central, disney beats the street and announces a big bet on streaming. markets now, oil prices in focus. down again in morning. plus going for gold. and finding the funny t. first couple getti ting pumped about . bring you their knew video gone viral. it's wednesday, august 10, 2016 and you're watching "world wide exchange" on cnbc.
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>> good morning and welcome back to "world wide exchange." i'm sara eisen. >> and i'm wilfred frost. good morning from me as well. let's check in on the markets. yesterday we eked out very slight gains and we are doing the same again in the futures market this morning. we are up around 20 points of the dow. about 3.5 for the s&p. around p points for the nasdaq. the nasdaq did close at an all-time high yesterday. we did hit midday all-time high for if others, but lost ground towards the end of the close and didn't finish there. we are called higher at the open this morning. europe and asia both had strong starts to the week. trading in mixed territory this morning. as you can see, germany up. and almost a 2% game yesterday. by the likes of italy and spain are up despite losses in
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germany, france, and the uk. asia similarly mixed. managing to close in positive territory. shanghai and japan were down. doing better than expected. >> as for the broader market picture, oil continues to be under pressure. right now had a strong few sessions. it is above $42 a barrel right now. 42.p 1. off about a percent. brent is off little less than a percent. this after the a pi showed a build last night. get the government report on inventory later this morning. it is wednesday. as for the 10-year treasury note yield, not just in great britain where they're actually buying bonds now, but also buying treasuries and that's pushed the yield down to 1.54. we started the week around the higher 1.50 level. mortgage apps and job's report a little bit later this morning. as for the u.s. dollar, it's
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been under pressure this morning signaling investors are betting on a hike any time soon. the pound stronger at 1.3055. and the japanese yen stronger against the dollar at 101.39. gold goes the other way as the u.s. dollar and that is why it's gaining. up almost a percent this morning. up about more than .8% there. >> bank of england not buying u.s. treasuries, but guilds. >> but investors are buying bonds everywhere in the world. >> exactly. serge for yields. today's top corporate story. disney. finding dory and jungle book and captain america. increase in studio revenue helping to offset sales. let's have a look at the share price off 1.2% in the premarket.
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the big surprise in the earnings, disney announcing a $1 billion investment in a video streaming company formed by major league baseball. commenting on the move in a first on cnbc interview with julia boreson last night. >> we love the business model. we think in today's world having the ability to stream on a scaled basis live sports and live programming is a competitive advantage and something that's necessary. we love the user interface. we look at it as an investment. as an owner and ultimately as a majority owner we feel it gives us the ability to jump start not only espn, but our other business as well iger also commenting on business in europe following the brexit vote. >> we had a stronger quarter than expected from great
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britain. our theme park in paris because of everything that's going on in europe from brexit to the economy to some of the recent terrorist attacks: hong kong has strengthened. japan is still strong. >> did you see the occupancy in the shanghai park. 95%. >> he talked about that. it was strong as well. remember it opened just during the quarter. they didn't provide any specific numbers, but did say it was strong and people were staying longer at the parks. he said awareness was very high in shanghai. he also said he wasn't seeing anything too worrisome when it comes to cancellations at the disney theme park in phil mickelson florida. the big question in the overhang on the stock is that streaming revenue. and not streaming revenue, but the espn cable sub instructiscr that's been the big moneymaker in the profit center.
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this billion dollar investment as a way to diversify and think about the future and where consumers are going starting with sports and then potentially to some other content online. >> of course you say is a baseball platform, but can diversify that into a espn sports streaming. it's a question of whether they can get that up and going and a profitable margin before the quarters come down. >> whether investors can believe they can monetize that in the same way they have done espn which has been weighing on the stock. other stocks to watch this morning, the container store, revenues they're falling short of wall street estimate. shares under pressure as a result. yelp shares soaring. posting a surprise quarterly profit. raising full year revenue forecast. also beating on sales. seeing a nice 11% jump in the premarket on that stock. sun power getting crushed this morning. shares plunging on weaker
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guidance: including aggressive pricing by new competitors. sun power plans to cut 15% of the workforce. 1200 jobs. >> in other corporate news, tesla says one of the cars crashed in beijing last week while in auto pilot mode. the driver is arguing it sold as self driving and overplayed responsibilities. it's delivers responsibility to maintain the vehicle and is investigating. summer a time for investors to set it and forget it, but there are some stocks that sizzle during summer months and landon dowdy downs us with the continuing series on the best performing sectors in the s&p. this summer the stocks that are up the most, landon. >> financials taking one of the top spots. financials aren't usually in the list of top performers during the summer and have been on a
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roller coaster ride the past year, but that trend is shifting. expectations for interest rating being the key driver there. that's thanks to improving economy with better than expected jobs reports. increasing expectations for a rate hike. so what stocks are sizzling. navarrete yen is up 18.5%. pointing out there is a theory that student loans will be the next credit crisis. their borrowers are doing a better job paying back this year. and sl green reality up 17% on continued demand for new york city reality. >> thank you so much for that. of course. recently the last remaining sector in negatively territories, financials entered positive territory. >> but now in the plaque. time for top trending story.
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president obama and first lady michelle are getting super pumped about the rio games. taking to facebook and interviewing each other about the olympic events. she would compete in gymnastics, but president obama had a bit of a different perspective on that. listen. >> so you mentioned the gymnastics. >> yes. >> which i find spectacular because anything involving your head pointing down is not something i would do, but it's too tense. >> you get too tense. >> you're like spinning the whole time. >> i'm like she's going to fall. it makes me too tense. >> gets very nervous and shaken around gymnastics. >> his favorite event, the 200 meter. 100 is over too quickly. likes to watch them come out of the bend and race. >> this is their third message
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about the olympics. >> they're killing it. >> they're very excited about it. >> we're going to stick with viral videos from a different perspective. airline employees releasing a man in madrid jumping off the jet bridge running across the tarmac. reaching the plane before its departure. the unidentified man was stopped by the crew, but was allowed on the plane. he was later then arrested. >> how on earth did he get past security. >> that's quite a big jump. those things aren't low. >> no, bold move. >> there we go. ma drilled madrid airport. watch out. >> ed sheeran is hit by a lawsuit. earlier this summer over his 2014 song titled photograph. >> he's too nice. he's not cheating.
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i don't believe it. >> his copyright law issues are strict. they can transcend into studio and not just the sheet music. >> what is sheet music. >> just the actual notes on the paper. >> let's move on. still to come here on "world wide exchange" today's must reads plus happy birth alphabet. it's been one year since google's parent company was created. wow, one whole year. the company separated core internet business from other ambitious moon shop projects. since the share, the stock is up 21%. lots to come. don't go anywhere. .
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welcome back to "world wide exchange." now to today's must reads. stoifrs catching our attention. my pick comes from "washington post." gop must dump trump. writing and as a republican i should say paul ryan and every republican leader should revoke their endorsement of donald trump. at this point, what else could trump do that would be worse than implying the positive impact of ale political assassination, his words. of course everybody is writing about this this morning. interesting to hear from a
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traditional republican perspective calling on other republicans to denounce and move on from trump. something joe has been saying a lot of his morning program. something president obama said. he called on house leadership republican party to denounce him instead of sort of these minor coming out and trying to either defend him or to come out and say we don't condone this, but he's still the republican nominee. >> loads on this topic today off the back of that second amendment comment. i have watched the clip a few times. i have to say that i don't think it's not what he intended to say. >> doesn't matter. >> but loose with your words people could misinterpret it and follow it. i'm surprised we've seen joe come out to write a strongly opinionated piece off this. huge reaction. >> the point is it really shouldn't be up for interpretation when you're
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talking about second amendment and something that could imply. pretty uncharted territory. >> my pick in the financial times is a topic we covered quite a lot of today. it's on disney called too late to hit singles and their assessment of the investment in bam tech. i flag it. are they too late in the game to be investing this this kind of streaming service or could we make it work. well worth the read. >> and i think that ivan's point was the rest of the industry really hasn't gone there yet, but everyone is going to move there. by disney doing it, sort of a warning sign for everyone else they have to prepare for the future. >> particularly in sport s content in terms of streaming that. we're approaching the top of the hour. the team is getting ready for "squawk box" this morning. scott joins us from new york and scott, donald trump's friend and
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supporter called your show yesterday and here's what he had to say in part about trump's economic plan. >> if he sticks to what he's doing, i certainly do not understand why any worker, any middle class worker, the arch chi bunker of the world. that was a great show. i used to watch it. those guys are going to vote for him because they're smart guys. they know they're getting screwed and that is what i think will happen. >> scott, cleelly thinking the economic plan is the kind of stuff trump needs to be doing, but the focus today already moved off that very quickly. >> yes, karl was very happy with the speech of trump's economic vision in detroit the other day. i think he thought it was a good idea to get back on message and start talking about a policy and there were some suggestions people were were wondering if you looked at trump's economic team, karl was conspicuously
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absent from that. people were wondering what level of support was karl icon giving trump and i think yesterday morning, he or yesterday afternoon when he spoke with me on the show, made it clear that he's unwavering in his support of donald trump. thinks he can still win despite some mistakes he's made. karl icon even spoke of the criticism around the gold star family comment and the controversy that donald trump found himself in last week. said it was a mistake, but that he is unwavering in his support. we'll probably talk more about this this morning. we have jill sign ttine. then we have jim stuart the columnist joining us as well. always love to get him opinion on politics. couldn't be a better time to do it the morning after disney and
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he of course the author of the disney wars a few years back. >> "squawk box" coming up in about 12 minutes time. >> when we come back, john manly, chief strategist at wells fargo, joins us to help you get ready for the day. stay tuned your watching cnbc. first in business, worldwide. .
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welcome back to "world wide exchange." u.s. equity futures slightly higher. similar to the gains we saw yesterday, which were just above flat. joining us onset to discuss markets and outlook, john manley at wells fargo. ga great to have you with us. volumes have dropped off a lot this week. we now reach that typical summer
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moment we can expect flat for the rest of the summer. >> i think it's probably likely. first of all, i got up solely to see you this morning. not much is going on in the market these days. it's pretty slow in august. rather uneventful month. one thing i will tell you the seasonality players didn't do well. didn't take off in january. didn't fade when you got to may. so these things work until they don't work. i still think the earnings are working higher. i think the fed is supported. >> just countering that for a bit, don't look, but the s&p is up 7% so far this year in a year we've had all sorts of turbulence ask the point is even in slow volumes and activity it's holding the gains. >> right. at the end it will get to where it should go. i still think there are three things that matter. and that's kept me out of trouble a lot of times in the career. thest the fed, it's the earnings. it's the valuation. if you keep focus on those
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you'll get bounced around. >> what is you take on the fed at the moment. lots of discussion. two strong jobs numbers, but not everything else is pointing to an earlier hike than expected. >> it's funny because i don't think janet yellen knows herself. how many times are the fed going to raise rates encourage on discourage economic growth in the any objectinext 12 months. if they try to encourage, they push money towards the economy. that money flows through the capital markets. >> that means they don't raise rates. >> the economy gets stronger, it can take higher rights. here's the fed or here's the neutral rate. here's the fed trying to encourage growth. the economy is stronger, people pay higher rates because they sense better returns. >> let's go to one of your other factors, valuation. where are we right now in the s&p 500 and within that, which
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sectors and group look to be less overvalued, let's say, than others. >> big stocks are pretty flush. i mean, i think they're attractive. the only value i find is energy. one of the reaso-- you have to caps decedent values in here. the s&p is trading at 17 times forward earnings expectations. i just don't think that's excessive. inni i think it's average. >> which sector is most overvalued. >> the high yield stuff. i have a problem with utilities and i have a problem with telec telecom. not because i think it's bad business. i thinky do better for people in other areas. >> you mentioned the third factor here it will data. >> well, earnings are coming in. and earnings are not bad after two years of going side ways,
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starting to see earnings expectations rise. that could surprise a lot of people. >> are you calling an earning recession bottom here. >> i think sideways. a earning yawn. >> if we bring in what's happening around the rest of the world, is that sportded enough to see growth in the year ahead. >> i think it's enough to keep the fed more stimulated or less restrictive. and i think growth is infectious. if the u.s. consumer starts to spend, eventually it works itself around the world. look how well the emerging markets did when they shouldn't have done in the beginning of the year. they're susceptible to improvements here in the u.s. as in europe. >> do you think there's an event risk heading into the u.s. election around stocks. >> we sort of know who the players are. we have a sense who is more likely to win than not. always surprises. sometimes the effect of politics
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on the markets are overstated. you look too hard. i'm not a big believer in the presidential election cycle. i think the fed is reasonably tin dependent. let the elections happen as they will. >> no matter who gets elected. >> i can't say it doesn't matter, but it's a big country to turn around one way or the other. i don't see a single party controlling everything and that's okay. brexit i think had the potential to surprise us. and obviously the candidates can surprise us too. i don't mean to walk away from that. the fed figure there could be a jarring effect here. in the u.s., you'll get one or the other. if it's donald trump, it's a bit more radical. you're still going to have a whole branch government on the ore side of it. >> thanks for joins ugh. pleasure to see you as always. john manley from wells fargo. >> just a few seconds left. watch the disney share reaction.
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and the billion deal. >> that's it for today. "squawk box" coming next.
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good morning. markets now the nasdaq climbing to a record close. the price falling this morning. a full market roundup is coming up. disney magic media giant investing in bam tech in a bid to take espn. donald trump under fire for a remark to gun owners about hillary clinton. was he misunderstood or out of line. it is wednesday, august 10, 2016 and "squawk box" begins right now.
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>> good morning, everything. happy hump day and welcome to "squawk box" here on cnbc. i'm becky quick along with scott. let's take a look at the u.s. equity futures this hour. you're going to see some very modest advances. this comes on the heels of very modest gains. yesterday the dow was up. s&p higher. nasdaq hit another new high. the dow is within spitting distance of that new high and this has been a rather quiet rally we've been watching. in the months you were supposed to sell in may and go away. we're going to talk about that with analysts. in the meantime check out what happened overnight in asia. you'll see the nikkei is down. closedow

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