tv Worldwide Exchange CNBC August 31, 2016 5:00am-6:01am EDT
good morning. more mergers needed. were they misinterpreted. more likely than not, a notable economist saying a an interest rate hike is probable in september. piece of the pie. what are uber and lyft. google may be looking to break into the ride sharing business. watch out. it's wednesday, august 31, 2016. "world wide exchange" begins right now.
>> good morning and welcome to "world wide exchange." i'm sara eisen. >> i'm wilfred frost. good morning to you. let's check in the on the global market. yesterday saw sell off on wall street. continue the trend of not seeing 1% moving either down or up on a day in a month. it is the last day of the trading month of august. and s&p futures are mixed to flat. dow future down 8. nasdaq down two. as for the ten-year treasury note yield we did see a sell off this month for august in terms of treasuries. hovering at historic lows this morning. it is at the end of the chart there on august ticked higher throughout the month on increasing talk from fed officials and better u.s. economic data that they're inching toward an interest rate hike. will it come in september, will it come in december. will it come this year at all? that's up for debate.
i'm not sure the fed knows it itself. keep an eye on the yield. >> absolutely right. we saw it affect stock prices as well. it was a broad quarter percent selloff, but banks once again having strong performance. all up over 2%. they were the only outperformers yesterday. the rest of the soak terrectors down low volumes. let's have a look around the world. at the moment, a little bit mixed. germany is below flat despite its two biggest banks doing well. france is up 0.4% as are italy and explain doing a little better. asia, it's been a good week for the nikkei. we always see that negative correlation. it's up another 1% today. the shanghai comp. >> as for the broader market cross asset picture this morning. oil prices are selling off just a bit.
wti down half a percent. 46.12. brent staying above $48 a barrel. just barely this morning. i mentioned the dollar which has been rising. it's at a one-month high against the japanese yen. above 103. it continues to rise again today. we've seen several sessions in a row of a strong dollar potentially readjusting toward increasing odds of a hike in september and possibly december. the euro though is showing a bit of strength, nots much going the other way. it's all the way back down to 1.1146 the pound strong at 1.3147. up about half a percent against the u.s. dollar. >> let's also have a look at gold prices. what are they doing this morning? and up a little bit fractionally. 0.09%. >> we've got some big headlines in banking this morning. deutsche calling for more consolidation in europe and action by central banks to
counteract the negative impact of low interest rates. speaking at a conference in frankfort, saying that banks are less risky than before the financial crisis, but also less profitable. follow reports by a german magazine deutsche had considered a merger with commerce bank in the past. a deal would combine the two top lenders. pouring water saying he doesn't think the merger is an option. struggled to stay profitable. shares plunged to a record low in july after the uk brexit vote. cnbc has reached out to both deutsche bank and commerce bank. no comment from either of them. >> will absolutely right. we can look at the share prices again. if you did see them merge, it would be a huge huge development in what is the john european banking crisis. at commerzbank.
the reason it has such a move in share prices. sorry earlier it could be possible and prereleased comments he was going to give to the conference he said things like we need more mergers in an national level and will across borders. it's undenialable they're they're stuck in a dilemma. >> we're talking about the need for more consolidation across european banks. he's now come out and suggested this isn't going to involve deutsche bank and commerzbank. >> it's not unrelated to what's happening in the u.s. yes, financials are getting a bid on the idea of higher interest rates, but the common thread is you wonder after years of underpemps and sharp under performance in 2016 is it the bank's turn to play catchup whether it's in europe, they struggle with negative interest rates and that's not looking up any time soon, or in the u.s. if the data continues to improve.
is this a group that's going to start to shine. they are the best performers. >> indeed. on that note, let have a look at u.s. banks. have finally started to move into positive territory. for the year after decedent performance this summer. how has this been possible when yields have fallen so sharply. the u.s. ten-year treasury has moved from 2% at the start of the summer to below 1.6% today. it's important to note the banks get the rate from the short end of the curve. even though the middle and long end of the curve are flattening, banks profitability is less effective than you might think. on that note, look at the offer rate has risen this summer. stems from a change from the fcc, but is a small mitigating factor with regards to floating rate loans when rates elsewhere have been falling. you've also seeing in bank's earnings this year despite tough rate and regulatory environments
they're making a profit. if it comes should be seen as a bonus, not a necessity. for the area to watch out for an area of concern as we move into the second half of the year is the pace of loan growth, particularly in autos. by the way, it's been a sunny few months. we hope the recent hawkish tones from the fed chair, janet yellen. are delivered on and could lead to better performance still. so speaking to boston fed president and chicago fed president both speaking out this morning in beijing and both with pretty different views. rosen gren saying the federal reserve will meet 2% inflation targt and employment goal soon and quicker interest rate hikes over time could shield the economy from risk. points to rising commercial real estate prices as one of those risk. for his part, chicago fed president noted dove said he's convinced u.s. economic growth has slowed. evans saying a spike in long rates is unlikely even if the fed finds the need to raise
rates faster than expected. he is reiterated the fed's aim for gaud yule tightening, but didn't say whether he expects a rate hike before the end of the year. who offered his estimate for how likely september now is for a hike by the fed. listen. >> the odds are 60%. why? because while domestic conditions are flashing green, sbrer international conditions are flashing yellow. it's the international picture holding back the fed. >> will it hold them back in september? saying the chances of the ept rate increase will go up to 80% if friday's all important job number shows three things, job creation about 180,000. wage growth and no significant move in labor participation. we'll get more insight around 8:00 a.m. when we hear from minneapolis fed president who will be speaking in minnesota. there's a lot riding on this
friday's job report. more than usual. >> allows us to be even more obsessed than normal. also on today's economic agenda, an early indication of what may be in friday's report. forecast call for 180,000 private sector jobs to be added last month. versus 179,000 in july. at 9:45 we get august chicago pmi. on the earnings front, look for results from brown foreman, the maker of jack daniels whiskey before the opening bell. after the close, hear from sales force.com. >> former news. viacom has sold shares amounting to $31 billion. sold more than 28 million in shares. he also received a multimillion dollar exit package after he lost the battle for control over
the company to majority owner and chairman, summer in redstone. enormous total payoff over the last five years if you include everything. google is taking on uber with a new ride sharing service. google's service will help san francisco commuters join car pools. it allows thousands of area workers in some firms to use the gps app ways to connect with fellow commuters. connects riders are drivers who are already heading in the same direction. charges riders at most 54 cents a mile, less than most uber and lyft rides and for now google isn't taking a fee. >> that could be interesting. uber is so dominant. i wonder if it's too late. coming up, all of today's
stocks to watch. your top stocks are next. as we head to break, here is where the averages stand on the last day on the month. dow and s&p up 0.12%. nasdaq has been the outperformer. back in a couple of minutes. before taking his team to state for the first time... 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. the cash rewards credit card from bank of america. hey, jesse. who are you? i'm vern, the orange money retirement rabbit from voya. orange money represents the money you put away for retirement. over time, your money could multiply. hello, all of you.
seeing a mixed picture. dow down 11 points. nasdaq down 4. s&p barely positive. the big economic data point will be the read on private sector jobs. the adp report out in the 8:00 a.m. eastern hour thchlt is the last trading day of the month. the month is pretty much flat for the s&p and the dow barely positive. see if august can be another month in a row of gains. the nasdaq firmly up for the month. up more than 1%. quickly show you currencies. the dollar has made a move higher over the last week or so. that's driven a lot of trading action on wall street. still higher against the yen. above 103. at a one month high there. euro showing strength in the pound as well. and quickly, let's just show you oil as well. it is declining. early this morning, wti up.5%. brent hovrps above $48 a barrel. off almost .75%.
>> at the tend of a strong month for oil. let's move on to individual stocks to watch today. fortune reports google nest lab maker of smoke detecters and thermostats is undergoing a major restructuring. the development team will become a part of google to provide an internet of things platform. google paid 3.2 billion in 2016. hr block reporting a wider loss. the tax service provider said it had fewer customers in the u.s. and results impacted by foreign currency. down 5%. spending by companies and cyber stayed strong over the first profit. and revenue forecast is below estimates. down over 5%. other stocks to watch today, viva systems reporting better than expected second quarter results. revenue rising 34%.
cloud computing company focuses on sex life sciences sector. expecting third quarter results to come in above analyst forecast. astrazeneca will pay to avoid a bribery probe. to state officials in russia and china. however astrazeneca is not admitting on denying any wro wrongdoi wrongdoing. sec awarded a whistleblower. involving the company's roundup product. monsanto agreed to back in february. >> more headaches for ceo elizabe elizabeth holmes. according to the wall street journal, didn't include the proper patient safe guards in a study of the test. this is the latest set back for the firm which has faced numerous sanctions for testing
practices. theranos e-mailed and plans to resubmit the application. still to come on "world wide exchange" a busy day ahead for donald trump as he gets set to make a major policy speech and makes a surprise visit south of the u.s. border to mexico. we'll get you the latest on his itinerary next. before we head to break, here's today's national weather forecast from jen carfagno. >> good morning. today is a day we're continuing to watch the drop i think tropi likely to become a tropical storm by the end of the day. big bend area of florida with a land fall not until tomorrow. plus along the east coast, that's heading out. however the surf is still turned up. really up and down, we have high surf concerns along with high rip current risk more
importantly for various reasons up and down the east coast. very warm today. 88 degrees ahead of the front tracking in across the northeast. as it does it's going to be drier cooler air. along with it see some showers. and some big rainmaking thunderstorms especially from west texas into the portion of the plains. a lot of rain today. jen carfagno if the weather channel. "world wide exchange" continues after this. people get anxious and my office gets flooded with calls. so many things can go wrong. it's my worst nightmare. every second that power is out, my city's at risk. siemens digital grid manages and reroutes power, so service can be restored within seconds. priority number one is keeping those lights on. it takes ingenuity to defeat the nsters that live in the dark.
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very good morning to you. another low volume day yesterday. saw about a .25% decline. nine out of ten were in negative territory. it was a broad sell off. the banks once again had a good day. wells fargo, bank of america, all up over 2% continuing a good week for that sector. as you can see at the moment, essentially flat in the premarket just below that level by 7 points the dow is expected to open down. let's look at oil prices. thaich had a soft week after a very strong month. we're going to end august with around about 10% or over 10% of gains for wti. as you can see, softer again today. .30 down. some other news to get to today. isis says the spokesman and number two in command has been killed in northern iraq. had delivered fiery sermons over
the past several years urging followers to carry out attacks. conducted an air strike near the syrian border attitudes targeting him, but isn't confirming his death. isis has suffered several set backs recently including in northern syria where turkish stroops and rebels drove the group out of a board town last week. >> to the u.s. campaign trail, a very busy day for donald trump. the presidential candidate gearing up for big immigration speech tonight. and also a face to face meeting with mexico president. tracie potts joins us with all the details. good morning. >> reporter: hi, good morning. the news of this meeting broke overnight. the big news had been that donald trump was going to arz to talk about immigration and hopefully clarify his policy and then overnight he announced that mexico confirmed that he will sit down this afternoon face to face with the man who he expects to pay for that wall. >> he is going to lead an
administration that will end illegal immigration. >> we are also going to secure our border and stop the drugs from pouring in. >> reporter: donald trump's message in arizona tonight and mexico today. president confirms confirms he invoted both candidates to visit. hillary clinton's campaign in the statement says americans should pay close attention to what trump says here. whether he'll deport 11 million undocumented immigrants. trump's team says tonight's speech will contrast his policy with clintons which will call guaranteed amnesty. >> all we know is something strange is going on. >> clinton's running mate is going after trump's ties with russia as fbi expects russia of trying to hack voting systems. >> don't you think the american vote rs deserve at least to get to the bottom of why trump's relationship with russia is so
cozy? i mean, what does he have to hide? >> house democrats are asking the fbi to investigate. meantime, down ballot republicans. >> last line of defense. >> seem to be holding their own. both john mccain and marco rubio won their primaries in arizona and florida. >> now, today, hillary clinton speaks to the american legion. she spent the last three days in the hamptons fund raising. raking in $21 million in the last few days. >> when i saw trump was going to mexico to meet with the mexican president on the same day he's going to give his major immigration speech with immigration policy headline that the wall mexico is going to pay for and the comments he's made about mexican racist. i think it was in the onion. i thought it was a joke of a report. how did this invitation come about? isn't this the same president that called trump and compared trump to some of the most -- the worst dictators in history? misuse leeny and hitler.
>> reporter: then he took that back. it's still out there. in terms of how he ended up going down there, it was an invitation to both candidates. hillary clinton says she already met. it was two years ago. while they leave it open, they don't have any immediate plans to do so. looks like donald trump jumped on that. going to get him a lot of attention as he continues to pin his immigration policy on building that wall that mexico says they'll never pay for. >> it's going be a busy day for him. mexico after the fundraisinger and back for the immigration speech. thank you. meantime, hewlett-packard meg whitman making her first appearance on the campaign trail for hillary clinton. called herself a life long republican has decided to cross party lines and throw her support behind hillary. making the case why clinton would help the u.s. economy. >> my view is that hillary would
make the far better president and really for two reasons, temperame temperament, stability, leadership experience and then frankly, i think the economy is sol important to the united states, i think she will be better for business, for job creation and for small business. so they're related, but i think she would make a much better president. >> wit mhitman says she's interd in helping to rebuild the republican party. a rarity to be so outspoken and really follow through by campaigning and fund raising for clinton. >> absolutely right. we'll see if it makes a difference. let's switch focus and go to sports. some action from the u.s. open on tuesday night with serena williams kicking off bid for record 23 major title. the six-time u.s. open champ showing little signs of trouble from a sore right shoulder that's bothered him since wimbledon. had 12 aces. 6-3, 6-3.
in the late night match. men's number two seed andy murray coasted to victory in three sets. well done, andy murray. the. still to come, morning's top stories. deutsche bank throwing cold water on the reports of merger with rival commerzbank. plus kim and kanye use air bnb too. show you where the power couple will be staying the next few weeks courtesy of air b and b.
good morning. we need more mergers. that's what deutsche bank ceo is saying, but have his comments been misinterpreted. one thinks the fed is reaching its goals. the other thinks the economy is slowing. two key fed memberings weighing in on rates straight ahead. and the world's biggest indoor theme open for business. we'll take you inside. it's wednesday, august 31, 2016 and you're watching "world wide exchange" on cnbc. ♪ ♪ >> good morning and welcome back to "world wide exchange" on cnbc. i'm sara eisen. >> and i'm wilfred frost. very good morning to you from me as well. we lost around a quarter of 1% in the u.s. markets yesterday. quite a broad sell off.
nine out of ten in negative territory. banks outperformed once again. some of the big banks, wells fargo, morgan stanley. slightly lower in the dow. nasdaq flat. >> going to add on the opposite end of the sprek trum, retail had a tough day after the aber com by and fitch sales missed. big disappointment there. >> let's have a look elsewhere around the world. european trade is for the most part positive. france, italy, and spain looking pretty good up around about half a percent. asia, it's been a strong week for the nikkei in particular as a strong dollar and weak yen has allowed the japanese exporters to rally. hong kong just below flat. >> you mentioned a strong month for oil prices. oil under a little bit of selling pressure this morning.
wti hovers above 46. 46.19. those losses are sort of trimming. they're getting trimmed this morning. we're down about half a percent, little over 20 minutes ago or so. brent now down little less than half a percent. 48.15. as for the ten-year treasury yield. we've seen a sell off in treasuring for the month of august. one of the worst months in a long time. that pushed yielding up into the hie 150s, but we're way off the lows that we saw earlier this summer. as for the u.s. dollar, stronger dollar really making a move in the last few sessions, especially against the japanese yen. and the dollar stronger again. that could be a headwind for corporate america which is still blaming the strong dollar for misses in profits and oversea sales. we'll see how strong that dollar gets in the month ahead and whether the fed makes the move. the euro getting strength and the same with the pound reversing the trend that we've
seen early in the session. as for gold, moves in opposite direction. headed for a loss for the month of august. little flat this morning. 1317.30. off the highs of the year we got to just before the summer began. you mentioned big headlines in banking this morning. german magazine porting that deutsche bank had considered a merger with commerzbank in the past. combine two top lenders. down that report, doesn't think a merger is an option. cnbc reached out to both banks. no comment from either of them. clearly there's a reaction here. ceo of deutsche bank said it seems that investors still think there's something to the story even though he shot it down. prepared remark at a conference in frankfort today. this is what it came from. talking about mergers. talking about the strains in the european banking profitability and i guess the question is is there any hope for a deal or
deals in general in european banks, which have been hit so hard. >> clearly investors taking some comments positively. he did say germany has too many banks. margins are too low. banks need more to compete. when you add that in a story this morning saying deutsche bank was considering merging with dmers bank. later said that's not an option and huge anti-trust issues if they were to merge. the two biggest lenders. you could see a possibility of deutsche retail arm, which they've been trying to get rid of anyway. is there something that could merge there with commerzbank. maybe. most analysts coming out and saying this is highly lly unli >> we haven't seen big bank mergers in this country post crisis because of the regulatory environment. they've approved some little ones, but nothing like this. >> but either way, big share
price move. some people taking this positively. both of these banks trading around 0.3 price the book. the difficulty european banking is still facing compared to the improvements we've seen over here is vast. you on one hand could think, this could be a cheap acquisition, but for the other one, you have to finance it. just highlights the issues still is there and the crow s. >> look forward to higher-year-old high eer yields in the u.s. >> possibly. on that note, let's talk about fed speak. boston fed and chicago fed both speaking this morning in beijing and both with different views on the economy. rosengren saying the federal reserve will meet the 2% inflation target and employment goal soon. and a quicker interest rate hike other time should shield the economy from risks.
points to rising commercial real estate prices as one of those risk. chicago fed president charlie evans is convinced u.s. economic growth has slowed. saying a spike in long run rates is unlikely, even if the fed find the reason to raise rates faster than expected. didn't say whether he expects a rate hike before the end of the year. >> late yesterday on cnbc fast money, we heard from allianz, who says the chances of a fed mike in september are anywhere from 60-80%. >> what makes that probability go a lot higher, a friday report that has three things. job in excess of 300,000. wage growth going up and no significant move in the participation rate that pushing the unemployment rate up. if you get these three conditions you're going to go from 60% to 80%.
on today's agenda, we could get an early indication of friday's job report. august adp report out at 8:15 t. forecast calling f g fing for 1 private sector jobs. then at 9:45 get august pmi. followed by home sales. clearly it will economic data matters all ahead of tomorrow's job report. on the earnings front, look for results fr results before the opening bell. after the close, hear from sales force.com. i mentioned aber com by yesterday. still has the ability to move the stocks. >> particularly during low volumes. we saw aber com bi moving the whole sector off the back of a relatively small earnings report. all summer been showing you
summer sizzler series. including tech, financials, and health care. today we get a different take. >> summer wraps up, we're taking a look at which areas of the market haven't held up. the worst performing sectors. consumer discretionary, big departure from previous years. it's in the bottom five this year. up a little more than 3%. that's due to a changing consumer and fierce retail competition. dollar general in specific down 16%. energy is up just 2.3% due to a volatile oil prices and concern about global supply. that is the wirs performing stock in the s&p this summer. consumer staples are up just 1.2% on increased competition. telecom fizzling down 1% as companies spend more to spandex
works. and makes the yield heavy less competitive with a fixed income investments and down 3.5%. back over to you. >> been a bit of a rotation. landon, thank you. jet blue air ways is set to make history today. carrier will be the first to launch regularly scheduled flights from florida to cuba. start at $99 one way. speaking of airlines, don't miss jim cramer interview. tonight, 6:00 p.m. eastern time. this comes after the announcement of an executive shuffle over there. president of american airlines group was let go on monday will take up the same senior role and rival united continental. get more insight to what the move means on the company. the sector in general. >> comes off the back of united
pilots being arrested. >> dubai t city that already has the world's aalles tallest build luxurious hotel is adding another to the list. largest indoor theme park. size of 28 football fields. it's called img world adventures. features rides with characters from cartoon network and disney. governments across the middle east are eyeing tourism to fight off oil plunges. >> seems costly to build. >> massive indoor space. >> let's go. today's top trending story begin with kim and kanye. landed themselves a new york city apartment. the company giving kim and kanye a complimentary stay. 7,000 penthouse currently on the market for $24 million.
the pair set to stay in the new york penthouse through late october. i don't know how i feel about this. they're giving them this for free to get the advertising on social media. >> is that a sponsorship. >> the person trying to sell the apartment get as boost. >> just unfair. we pay so much for new york city real estate. >> it's only until late october. they'll have to find a place. >> they'll be on the street in no time. >> exactly. abc dropping a bombshell on fans of the bachelor last night. notework revealing nick is the leading man for season 21. >> you're not giving this the right enthusiasm. >> this is major. >> let's roll back to the top. let me deliver the story as it deserves to be delivered. >> there we go. abc dropping a bombshell on fans of the bachelor last night. the network revealing nick as the leading man for season 21 of the bachelor.
viall a two time bachelor runner up. bombshell is not enough of a word to describe this. >> you emphasized the right part. 21 seasons. it's got to be the longest running show. >> he's been on three times. what a lucky guy. >> surprises everyone. >> three times. >> they ripped up the script because usually they take a bachelor from a previous season bachelorette. this was a total surprise. he's been on so many times and beloved by bachelor audience. >> adore him. >> thank you. thanks for indulging me. >> top three best performing stocks on the major averages. dow component merk up. back in a couple of minutes. no more mention of the bachelor, i promise. ught i was crazy to open a hotel here. everyone said it's so hard to be a musician,
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time for our must read stories in the paper catching our attention this morning. the follow through for apple and the european union commission decision ordering apple to pay 14.5 billion, a record amount, to the irish government in taxes. everybody is writing about it. i went to the wall street journal. the editorial board there, reading the biggest victims will
be europeans, brussels knew about the tax arrangements for years and never complained until the public mood turned. how safe is any business in legal behavior can be retroacts a deck aiade after the fact. turning the eu into a banana republic on high speed rail. no surprise the criticism is out in force for the eu with the irish government itself appealing the decision. i wonder how this is playing in europe. i wonder if they're appealing to any populist there because i have yet to find any praise for this decision. >> yes, it's certainly not wide praise. that's for sure. let's go for a perspective from the other side. my pick in the financial times. a slightly different perspective. that's why i pick up on it. apple cheaper than the irs. it reads apples's punishment for avoiding taxes it did not know
existsed is unprecedented and a much better deal than it could have gotten in the u.s. even though it's increasing from around 1% to 12.5 corporate tax that is applied in ireland, still lower than u.s. at 35%. the only reason i pick this up is clearly this is a big issue. i think it's much more of an issue between ireland and the european union. see this disappointment and fallout here in the u.s. particularly from the u.s. treasury against the and shall thinking apple is being vilified, i find it surprising. it should be viewed a ds a reminder the tax rate here needs to be fixed either way. either way apple is not paying anything here. whether they pay 1% or 12% in ireland or europe should be seen adds not paying 35% in the u.s. and trying to atralkt the business back here. i surprised the stent of the
fallout from a u.s. perspective to see that. >> i absolutely. it's a reminder the u.s. needs to reform own corporate tax system. the treasury had a problem with and wanted to block against and why treasury secretary has been meeting several times over the last year. they don't want any company being unfairly singled out here. there are a number of u.s. companies that do business in europe that do business in ireland and have perfectly legal tax structures that have been negotiated with the irish government. they don't want tech to be singled out. >> which i can see. i think it's more of a europe versus island issue. tax rates meant to be up to the nation. >> r and an try trust using a back door to change tax rates which is a first in the size of the fine in this area is a first. anyway, we should move on. >> yes. >> i have a feeling we're going to talk about it a lot. i think it's funny the uk is
stepping in to try to offer apple a friendly place of european home. they don't have to worry about this stuff. >> exactly right. although some way to go before we get though that. >> good morning becky. >> good morning. we have a lot coming up on squawk. before we get to that, sara, let's go back to the bachelor. did i hear you are a huge bachelor fan? >> are you as well. >> no, but i will admit i spent the last week catching up and binging with our girls. >> the bachelor in par diadise epic. >> by the way, it's horrifying, but you can't turn your eyes away. >> that's the point. it's a study of the human condition. all of its flaws. i could talk about this for hours. >> after sara saying how good the show was, i tried to watch
the one that was on recently. the bachelorette. >> i haven't even seen anything. >> worst television i have ever seen. >> it's stunningly bad like a car wreck. >> it's well produced and a reason it's been on for 21 seasons. that's all i'll say. >> i will admit it was a bing fest at our house. coming up on "squawk box" today, last trading day of the month. all over the markets trying to figure things out. we've seen pull back, but right now if the markets were to close here, we would be looking at gains for the month after august. seventh month in a row for the dow. six for s&p 500. people watching this closely. also big news coming out today. adp employment report hits at 8:15. while it's not a direct track of what we can expect 23rid, a lot of times it's a good indicator. gives us a heads-up. people watching friday job's number closely. this is going to be important. we're going to be talking politics today.
donald trump on his way to mexico. obviously got a big immigration speech coming out tonight. former senator both here to talk about what they see happening. what they think donald trump needs to say today or what they're hoping he will say in the case of ed rendle. we have someone here talking about the new york ag case against exxon mobile. we're going to be talking about public education. what do you think they're doing right and wrong and the role he's going to be playing with that. a guest from 8:30 to 9. >> thanks. great stuff. coming up in nine minutes time. more market discussion from pnc chief investment strategist. ra. every stitch and seam of your home insurance, tailoredo fit you and your budget.
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set up. dow futures down three. s&p up a point. nasdaq futures down a little less than one point on this last trading day in the month of august. joining us from philadelphia, bill stone. cheech investment strategist. bill, good morning. good to see you. >> good morning. thanks. >> as we tally up the month of august, we're looking at potentially another month of gains. six months in a row. see how we close today. the gains are still fractional. nasdaq up firmly a percent for the month. is that psychologically important in terms of bringing new money into the market from the sidelines. >> yes, i think you're seeing, you know, underneath there's turning than just that slightly up. you're seeing a transition from what we had as leaders which was the interest rate sensitive stocks. the utilities and the telecoms that really have given out over the last month and given back some of those gains. moves to like the technology that i think are perhaps taking hopefully i would say taking the
baton and i think that's obviously better, right, because if it was really driven by all interest rates that's probably not a sustainable kind of rally. so i think that is i think good news. >> you mentioned technology financials have also made a move. best performers for the month. for the week, and yesterday's session on slightly higher rates and increased probability the fed moves, are you a buyer? what's the sentiment. it's been all over the map this year. >> we've been early to liking financials so what's to like about this them? they're cheap. that's the best thing you could say about them for a while. now with a little bit of it seems like obviously tail wind of assuming we're going to get at least one hike this year, it's given them a little life. i think that's reasonable to say at least we'll see some decedent earnings i guess boost from this rate hike again. probably only one. so it's not a big boost, but the
good news since people had really not that long ago essentially taken a hike at all off the able to, it's come as new news. if we're right that the economy in the u.s. anyway continues to chug along and third quarter at least a quarter in the atlanta fed is running 3.5. we think we'll end around three, that's a good environment for financials. >> just quickly, about 30 seconds left, you're view of what's going on around the rest of the world. is that something that could skufr a promotional rate hike as we saw earlier in the year. >> it certainly could. at least right now, as you know, it looks like the uk those, i'll say, not a strong economy. not as bad as people thought when the brexit referendum originally passed. you know, china will get more pmi data this week. euro zone i think hanging in there. maybe some would argue a little bit better. i think it's okay. coast may be clear enough for them. we expect a december hike. >> thanks so much for joining us
today. that's it for "world wide exchange" this morning. thanks for watching. "squawk box" is coming next. the launch window. we have to be very precise. if we're not ready when the planets are perfectly aligned, that's it. weeed really tight temperature controls. engineering, aerodynamics- a split second too long could mean scrapping it all and starting over. propulsion, structural analysis- maple bourbon caramel. that's what we're working on right now. from design through production, siemens technology helps manufacturers meet critical deadlines. i think this'll be our biggest flavor yet. when you oy have one shot, you need a whole lot of ingenuity.
is ask see . good morning. it could be lucky seven here on the final trading day of august. the dough on track to post a seven straight higher close for the month. a full run down of the market and movers straight ahead. plus a triple storm watch. florida's gulf coast bracing for a storm. hawaii could get hit by not one, but two hurricanes. donald trump heading south of the border. will meet with mexico president ahead of big speech on
immigration. it is wednesday, august 31, 2016 and "squawk box" beginning right now. >> good morning, everybody. welcome to "squawk box." i'm becky quick. we've been taking a look at the u.s. equity futures and as we await the adp employment report that comes out at 8:15 looks like little movement ahead of that. a lot raiding on the jobs repor on friday. people have a lot riding on this because if it's a very strong number on friday, like it was last month, the expectation is it will put more pressure on the fed to raise rates. still not a lot of people betting on that. >> if the numr