tv Worldwide Exchange CNBC September 14, 2016 5:00am-6:01am EDT
good morning. global market jitters from pail singer to carl icahn. we'll tell you what's keeping some of the world's most powerful investors up at night. wells fargo ceo telling cnbc he's accountable for alleged abusive accounting practices at the bank, but john stumpf is not ready to resign. and colin powell calls donald trump a national disgrace. and hackers say they have more to release. "worldwide exchange" begins right now.
♪ good morning. welcome to "worldwide exchange," i'm sara eisen. >> i'm willfred frost. >> let's check in on the global markets after another selloff on wall street. energy bore the brunt of selling yesterday. futures looking calmer this morning. s&p 500 futures up 6.nasdaq futures up 17. here we go again, on again and off again risk aversion. the volatility is back and moves are getting bigger. we're not seeing a triple digit move in dow futures. we saw that yesterday and the day before and the day before that. we'll see if this relative calm lasts. the futures market has not been a good indicator of the day's trade ahead. whether the futures have been green or red, we've led to some
quite significant declines. do keep that in mind as we get closer to the open. yesterday big declines across the board. tech was the relative outperformer, only down 0.6%. apple significantly gaining. it was the only stock to be up on the dow after some of the telco companies released early sales figures for the iphone. >> apple is a bright spot. the ten-year treasury note yield. check on the mood that has been a source of concern for the markets. this jump up, ten-year above 170. 171. yields plat this morning. we'll see if that lasts. a global phenomenon, higher yields have spooked equities. the question is is the great big bond rally coming to an end? how sharp and violent does that come? a lot of talk about that at the alpha conference. >> the 30-year moving up closer to 2.5%. d it depends what the driver for
yields is, if it's rate hikes, not so much of a problem. if it's a lack of confidence of central banks to efficate things moving forward, that's more of an issue. we'll bring remarks from people far brighter than us in just a moment. let's look at european equities. they did decline yesterday around 1%. bouncing back today. perhaps that's a sign that the u.s. figutures market can hold to gains when we get the open. slight gains across the board for europe, other than spain which is flat. asian trade. sort of a similar story. we had declines yesterday, but in fact declines again in asia. we have had a move in the nikkei down 0.7%. shanghai down 0.7%. for the broader market picture, crude prices are rising. after falling as much as 3% yesterday. small rise here. $45 a barrel is your price on
wti crude. brent 47.19. we did get that api report on inventories last night. 1.4 million barrels in terms of a build. that was smaller than expected. it's wednesday, so we'll get the government report this morning in the 10:00 hour. watch oil prices on that. also helps oil is the dollar is softer. the dollar has been stronger over the past few sessions along with higher yields. higher yields make the dollar more attractive. you're seeing that this morning against the yen. it is weaker against the euro and the british pound. the currency moves have been smaller than the equity moves and the bond market moves. they've been taking a backseat now. always important to watch. if there's any fear the fed will raise rates next week or december, could see that move in the dollar. as for gold, let's show you the trade. slightly higher on the back of that softer dollar.
and there is the bayer monsanto imminent deal, which will be a big one. >> one piece of economic data on today's agenda, august import prices a key measure of inflation out at 8:30 a.m. eastern. they are expected to slip by 0.1% last month. to this morning's top corporate news, that is the big one, more than $66 billion deal. the largest one of the year could be close to done. we're talking about bayer reportedly set to announce its acquisition of monsanto as soon as this morning. this follows more than four months of talks. bayer has increased itsed by to around $130 per share. the combination will be scrutinized by regulators. both stocks are higher this morning. monsanto up 2.5%. >> the big question is can they finally seal the deal? views on that in a moment. wells fargo facing a firestorm of criticism following
its sales practices. john stumpf appearing on "mad money" last night. saying he holds himself accountable to the abusive practices at the firm. >> it may mean, some people say, is you have to resign. >> i think the best thing i can do is lead this company. today we made an announcement about sales goals. we never intended for product sales or any dynamic or any part of a management system to be misinterpreted. >> the bank was fined $185 million by the consumer financial protection bureau and two other regulators for allegations its staff opened more than 2 million bank accounts and credit cards for customers without their consent to meet internal sales goals. cramer asked if he heard from warren buffett.
he said he's talking to a lot of share holders but wouldn't talk about one conversation. wells today is up 0.4%. yesterday it slid. ending the day now as only the second biggest bank by market cap in the united states. jpmorgan taking the title as top spot. of that interview last night, we're billing it as a mea culpa saying he takes accountabilities. i think mea culpa is too generous a term. he's saying, yes, the buck does stop with me. his comments and the cfo's comments yesterday morning on a conference call suggest this was lower level employees who did wrong. they didn't want it to happen. >> but who was supervising? >> that's the point. they're not saying we need to give back chunks of the bonus and things like that. >> jim asked about that. he wouldn't go there. he said it is a board matter saying maybe there was some discussion about that.
>> so maybe not a full mea culpa, but he said the buck stops with me. we'll be under more pressure next week. he said he will go to that senate hearing. this story will not end. the premarket at least, their share price is up. >> jack lew saying -- he wouldn't comment too much, said the claw back was a consumer protection issue, but that it was a wake-up call to the persons of this issue of dodd-frank, and some saying it should be abolished but it was also culture problems at wells fargo. >> he also said no one is too big to jail as well. not specifically talking about this particular issue. but something to be aware of. >> giants of investing business and policy had warnings for
investors at the delivering alpha conference in new york yesterday. paul singer, president of elliott management, arguing that central bankers are to blame for the slow economy. liste listen. >> eight years of ever-declining rates and ever-increasing radicalism in other monetary policies have not created a sustainability accelerating uptick in growth what they have done is created a tremendous increase in hidden risk. risk that investors don't exactly know or faced about their holdings. i think it's a dangerous time in the global economy and global financial markets. >> blackstone's ceo steven swartzman offering a less than optimistic stone saying stocks are overvalued here as interest
rates give them a lift. he also joked around when giving his prediction that fed policymakers may react soon out of boredom. >> people have been talking about this on television for so many years, that the fed may do something out of the boredom of it all. >> we're daring them. >> right. you're daring them repeatedly, eventually they'll give up and do something. 25 basis points will move markets only because you all have become a proxy for the markets. you wanted to move something. or else there's no news. a and -- but it won't make a difference to the u.s. economy. >> we also heard from ray dalio who said the debt market is in a dangerous situation as central banks around the world lose their ability to stimulate growth. >> there's only so much you can squeeze out of a debt cycle. we're there globally.
when you can't lower interest rates anymore, we know the power of having the effect on asset price is going up because interest rates go down. in other words, they have a present value effect that causes interest rates to cause asset prices, and we're reaching that limit. the inability to produce stimulation by lowering interest rat rates is at a limit. >> the heavy hitters with a heavy dose of economic pessimism. a lot of blame on central blanks for what paul singer called central bank extremism. what do you do with that information? singer said you avoid g-7 bonds. they are not safe. the idea that they're safe havens is completely wrong. it almost felt like you needed a central banker there to defend
themselves against the big hedge fund players. >> ray dalio's point is the bearish one. we were touching on it earlier looking at the bond yield charts. he's saying that's due to the lack of efficacy now that the central bank's ability to do anything is slipping away. in the u.s., if yields are ticking up because rates are going up, that's less of a worry, but he's suggesting that's not the reason but that central banks have nothing else to do. the seinger and dalio agreement agree with what trump was saying, that they propped up the markets artificially. >> i have to say, there was more warnings and worry from these hedge fund managers about slow growth and lack of efficacy from central bankers than the political environment in the u.s. donald trump, we tried to get
that out of a lot of our panelists, but we didn't get too much. don fits pzpatrick said we need pay more to the elections here than the central banks obsessions. >> we'll bring you more opinions from yesterday throughout the show. stocks to watch today. sarepta therapeutics jumping more than 10%. the fda will make a decision soon on whether to approve the company's treatment for genetic muscular disorder. samsung says it will perform a software update to limit the charge on the galaxy note's 7 battery at 60%. the update is only available in south korea for now. the company also running local ads apologizing for the global recall of the phone following reports that the battery could cash fire while charging. i wonder if that will have an impact on the early numbers out
of apple's iphone 7 sales yesterday. hermes is suffering its worst day in six years. they are scrapping sales growth targets due to an increasingly uncertain sales target. stores still have not recovered following the paris attacks in nice in june. it's down 6.8%. luxury retail across the board in europe is suffering today. the likes of richemont and swatch as well. >> bill ackman has been a largest shareholder in the industrial gas and chemical company and led a push to cut costs. jetblue says cfo mark power will retire on november 1st. he will stay on as adviser for the next year. and richemont is warning the first half product will be lower
after sales were off 14% through august. sales were down in much of europe due to lower tourism and growth in china was offset by weakness in hong kong and macau. the head of the european commission calling for brexit to happen as quickly as possible. this is his first formal address in terms of a policy address. >> he gets on the microphone when he can. this was a formal policy address and he called for greater union. we are talking about jean-claude juncker and his annual state of the union address today. you're watching "worldwide exchange." t in makes it easier to get here, the neighborhood is really changing. i'm always hopping on the train, running all over portland. i have to go wherever the work is. trains with innovative siemens technology help keep cities moving, so neighborhoods and businesses can prosper. i can book 3 or 4 gigs on a good weekend. i'm booked solid for weeks.
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i think it's a dangerous time in the global economy and global financial markets. the entire constellation of monetary policies post-'08 i believe has been strongly growth suppressive. >> there is only so much you can squeeze out of a debt cycle. we're there floeglobally. >> don't start taking as much risk as you used to and get the same returns. you just can't in this environment. >> you want to focus on those countries where currencies will act as an offset. uk and germany are the most interesting places to invest. i find rates and equity markets heavily disported now.
>> welcome back to "worldwide exchange." that was a small bit of what we heard from yesterday's ail star gets at delivering alpha. many delivering their views on the economy and this outlook of low yields and low returns. this morning in strasbourg, jean-claude juncker giving his state of the union address. >> reporter: it was a passion in the and lengthy speech. i think he spoke in four different languages once again. he's defended the european union in his annual state of the union address saying brexit does not put the block at risk. he said the region was not social enough and the next year was crucial to deliver a better europe. >> translator: allow me to state here and today that we respect and at the same time regret the uk decision.
but the european union as such is not at risk. >> in fact, that was juncker giving the first policy address since the uk decided to brexit. guys? >> carolin, also on the agenda is bayer's deal for monsanto. will they finally get it over the line? >> hopefully. this deal has been in the making for months, this is now the fourth time that bayer has had to raise that offer. people close to the matter say it will be closer to $130 a share. monsanto is widely expected to have accepted that, even though they were originally pushing for a much higher price, 135 or 140 even. reports also saying that bayer's supervisory board will meet
today to seal a tie-up and takeover. that would create the biggest ag supplier in the world. it's also worth noting that the breakup fee has been raised to $3 billion that tells you monsanto has been pushing for protection if the deal pushes through for competitive concerns. >> carolin, thank you very much. still to come, the morning's top political stories including donald trump preparing to release some medical information. we'll tell you what dr. oz has to do with it. stay tuned. you're watching "worldwide exchange."
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good morning. welcome back to "worldwide exchange." donald trump is expected to reveal medical records today as he tapes a segment for the dr. oz show. hillary clinton will spend another day off the campaign trail because of her pneumonia. tracie potts joins us from washington with the latest. >> reporter: good morning. the reaction on sunday to that pneumonia caught on video has forced the issue of these medical records for both candidates. we want to start with the former secretary of state, colin powell, who is now admitting he made some harsh remarks about trump. this morning former secretary of state colin powell confirms an e-mail exchange where he calls donald trump a national disgrace, part of the racist birther movement. today is supposed to be a day of revelations for trump. he's promised to reveal results
from his latest physical on the dr. oz show. >> i won't ask him questions he doesn't want to have answered. >> trump's campaign manager says there is no need for a detailed medical history. >> i don't know why we need such extensive medical reporting when we all have a right to privacy. >> reporter: also today trump is promising to reveal his economic plan fully paid for after announcing he would expand tax deductions for child care. >> those in leadership must put themselves in the shoes of the factory worker, the family worried about security or the mom struggling to afford child care. >> really? this is the guy you want to be championing working people? >> reporter: president obama filling in for hillary clinton tweeting but still recovering at home. she's expected to be back on the trail tomorrow. back to the leaked e-mails and powell, he said there is more out there to be revealed.
these hackers have wreaked havoc in parts of the political world. tim kaine, the vice presidential nominee for the democrats, his cell phone is out there as a result of one of these hacks. >> which poll will you be watching? which state will you be watching right now? i see a headline on bloomberg that trump is leading clinton by 5 points in ohio, one of the keys. >> we've been watching a number of states, ohio is a big one. florida is a big one. the battleground states that we most eventually reported on included arizona, new hampshire and georgia what we're seeing in the polls is that this race is tightening up. in red states where hillary clinton has been getting an advantage, and in blue states where donald trump is doing the same. >> thank you very much. both of our must-reads politics related, yours from ivanka and mine from frank lunz.
coming up, stocks to watch and a round up of the global markets calming down a bit after another turbulent day yesterday. we'll get to the top headlines and including how many nelly fans are trying to help the rapper get out of irs debt. you are watching cnbc, first in business worldwide. every stitch and seam of your home insurance, tailored to fit you and your 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. they say the world does not revolve around you. but today, maybe it can. i am helping 1-800-flowers find the perfect gift out of trillions of combinations.
of monsanto as early as today. wells fargo's ceo telling cnbc he's accountable for alleged abusive account openings at the bank, but john stumpf is not ready to resign. it's wednesday, september 14th, you're watching "worldwide exchange". ♪ good morning. welcome back to "worldwide exchange," i'm sara eisen. >> i'm willfred frost. good morning to me as well. let's get straight to the market action. big declines yesterday, around 1.5 for the s&p and dow. 1% for the nasdaq. we are expected to minimize some of those losses today.
the last couple of days, futures have not been a grate eat indic of where we've ended. >> they also have lost some steam the last hour or so the key is the global bond yield surge. whether that is for real and a new trend. >> absolutely right. we have three sectors in negative territory for the year as a whole, financials, consumer discretionary and healthcare. we'll bring you the details on jim cramer's exclusive interview with john stumpf in a moment. europe is trading basically flat. we were higher. we lost some steam in europe the last half hour as we have with u.s. futures. germany up a quarter percent. the ftse up a half percent. europe lost around 1% yesterday. asian trade has been negative this morning. we've seen the nikkei slide by about 0.7%. also shanghai declining a
similar amount. not really showing the bounce back that we might have hoped outside in europe that we did see in the futures market earlier. just losing a bit of steam. >> let's go broader markets. after a nearly 3% decline for the price of oil yesterday, it's stronger this morning. wti hovers above $45 a barrel. brent, 47.21. we will get the u.s. government's supply report this morning on crude. expecting a build of 4 million barrels. it came in less than expected on the api inventory report last night. ten-year treasury note yield, above 1.71. that's been a bit of a jump up. as you can see, still historically low. we'll see the speed of that move. as for the u.s. dollar, it did strengthen yesterday on the back of those higher yields. it is weakening just a bit this morning against the euro.
1.1231. weakening against the pound 1.3209. it is strengthening against the japanese yen. >> it was stronger about a half percent against the yen during trade. even that position weakened in the last hour or so. >> we'll see if the yen picks up strength. that could be a signal that sentiment is fading here. we could go back risk off. as for gold, let's show you the gold trade now. it is higher by about 3 bucks. to today's top corporate stories. a more than $66 billion deal. the biggest one of the year could be closed today. bayer is reportedly set to announce its acquisition of monsanto as soon as this morning. it follows more than four months worth of talks. bayer increased its bid to $130 per share it will be closely scrutinized by regulators it has increased the breakoff fee for
monsanto -- in the instance of this deal not going through, to 3 billion which is another development today. >> what is the back story here? lower gdp growth globally and harder times for agriculture and seed business? >> i think it's consolidation needed across commodities in all areas. this is a particular area that's seen a lot of talk in recent years. the interesting thing it's been a serious antitrust issue. it's to the like there's hundreds of players in the space. i think the difference which might allow a buyer to get over the line, it's not just a simple ag company already. it's got a lot of healthcare an other chemicals. it's buying into an ag space. basically the biggest ag provider in the world, but not one of the top couple of players. >> wells fargo facing a firestorm of criticism about its sales practices. ceo john stumpf appearing on "mad money" last night and telling jim cramer he won't
resign though he does hold himself accountable. have a listen. >> didn't the buck stop with you on this? >> of course, it stops with all of us. especially me. no, i'm the leader. i get it. >> okay. >> i said off the bat, i -- when we don't meet our goals of 100% right, i'm accountable. i'm leading this company and leading it forward through this. >> the bank was fined $185 million by the consumer financial protection bureau and two other regulators for allegations its staff opened more than 2 million bank cards for customers without their consent. he was also asked if he heard from warren buffett. the wells fargo boss said he has talked to a lot of constituents but would not talk about any one conversation he's had with a
shareholder. of course that matters because buffet lost $1 million on the slid slide. >> it ended as the second biggest bank in the u.s. >> should we watch for hearings? >> hearing next week. i think the share price move yesterday particularly came on the announcement that they're taking away the sales targets for retail employees. and people wondering, the biggest share price move in a single day since brexit but also since this broke. the fine didn't move the share price, it's a question of will this impact earnings going forward? >> it hasn't spilled over to the other banks importantly, correct? we talked to richard cordray, is this something you are looking for out of other banks? he wouldn't comment but didn't imply it's not a systemic thing. >> we have to take him at his word at that. it seems so widespread at wells fargo that it's baffling that it
isn't. the other thing on that going back to other comments from wells yesterday, the cfo speaking earlier in the morning saying it won't impact their sales taking away the targets. he said it was the people who wanted to hold on to their jobs, and the top sales performers weren't driven by this. and it doesn't affect their compensation much. the cheating was by people desperate to hold on to their jobs. that may convenient for him to say that, but we'll wait and see. premarket called higher. wells fargo falling 3% on declines yesterday. giants of investing business and policy gathered yesterday in new york. carl icahn did not hold back on his views on the market and moved shares of herbalife. landon has the details. >> good morning. carl icahn hit on two hot button topics. first market dangers.
icahn warning about the market saying there are problems regardless of whether the fed raises rates. take a listen. >> i think there are tremendous risks. but i think anyone that will tell you it will go down tomorrow, next week, next month, next year, it's sort of a guessing game. but you can look at the environment and i think it's very dangerous. in other words, you walk on a ledge, you might make it to the end. but you fall off that ledge, you will really see trouble. i think that could well be. >> second, icahn disclosing he's now seeking permission from his company to acquire up to 50% of herbalife shares, something he and bill ackman famously disagree on. ackman is betting with a major short position. icahn still believes herbalife makes good products. >> you have a model that i think works. and if i'm wrong i'm wrong. i'm not here to sell herbalife,
but i'm not just playing games buying the stock. i think it works. >> look at this. shares of herbalife rising on those comments. back over to you. >> better off private got attention. fans of nelly are rallying to help get the rapper out of debt troubles with the irs by downloading his music. it started when the website spin calculated it would take more than 287 million streams for nelly to pay off his $2.4 million in debt. one user tweeting saying if it's hot in here isn't the number one song by tomorrow, we as a collective have failed nelnelly. >> the amazing thing is how many streams it takes. it's like 0.00 something.
you had meatloaf on eventually, he said you can't make, unless you are like taylor swift and through the roof with plays every day. or lady gaga, your new song goes straight to the top of the charts. >> especially as music subscriptions get cheaper. this week it was announced pandora was looking at a $5 a month model. >> good for consumers. first lady michelle obama taking over the co-host duties on yesterday's episode of the ellen degeneres show. it's the first time anyone co-hosted alongside ellen. they danced, played water games and interviewed steph curry and bradley cooper. apparently she did an outstanding job. not as good as you interviewing steph curry. >> a lot of people are
chit-chatting about whether she will become a talk show host because she did so well and she seems to enjoy it. everyone is wondering what life is like after the white house. maybe she's headed that way. >> seems like she can do anything. she gives a political speech, everyone says she's going into politics. a big question surrounding the apple wireless air pod. tim cook saying they will not get lost. cook claims to have put the air pod on test, running on treadmills, walking, and dancing. >> this dancing video from last year. >> yeah. >> but he does dance. apparently did he with air pods. the $159 air pod came when the new i7 launched without the traditional head phone cac. apple shares have done well on the back of bullish comments from t-mobile and sprint on
sales. >> that was the market gainer of yesterday. if you're listening to music with headphones and dancing, you're doing it by yourself. that's depressing, isn't it? >> i guess some people do that. >> he's pretty good. >> in the apple ipad commercials they would do that. >> better to pull plugs out, get people joining in. simone biles is caught in the cross hairs of a group of russian hackers. the cyberthieves gaining access to the world anti-doping agency's management system and leaked confidential medical data of many olympians. biles who was diagnosed with adhd as a child took to twitter saying it's nothing to be ashamed of. the ceo of the u.s. anti-doping agency also commenting on the attack calling it cowardly and despicable. >> nobody is safe. >> hacks left, right and center. when we come back, the
must-reads including an op-ed from ivanka trump on child care policy. first as we head to break, here are highlights from delivering alpha yesterday. many of the conversations turning political. >> it takes a desire on the part of congress to do something hard. hard things don't happen unless there's a real, real desire to do it. >> we are concerned about activist government intervention in markets. and in the economy. this administration and the next administrati administration, which everlectie intervention. >> we don't want extremism, we understand things are complicated. >> i believe it would have been vastly different for the growth rate of the american economy and the problem of underemployment and unemployment had mitt romney been elected president.
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, and, can deliver insight person to person, on what matters to you. morgan stanley. now to the stories catching our attentions in the papers this morning. mine from ivanka trump, the trump plan will help working mothers. this has become a key issue for her and rim. ivanka writing for me motherhood is a gift and a tremendous source of joy yet also the greatest predictor of wage inequality.
in 2014, single women with children are 94 cents on a man's dollar. married mothers made only 81 cents. she goes out specifically to outline the ways that trump's plan would help make, for instance, child care expenses tax deductible for families earning less than 500,000, establi establishing accounts for child care and enrichment activities. clearly things important to her and meant to reach out to the female voter. >> absolutely. i think it's interesting. her involvement in the campaign has been a bit more selective than i would have hoped. as you say, she does have the ability to reach out to the female voter which is much less in the wheelhouse of mr. trump. i would have thought she would have been rolled out more. maybe she will be as we get
closer to election day. my pick is entitled hear is how donald trump it win the presidency. written by frank luntz. he writes this campaign has been a tale of two trumps, the good trump has an outsider anti-establishment appeal that voters respond to the bad trump traffics in gratuitous insults. he goes on to say if mrs. clinton is too scripted, mr. trump is not scripted enough. the more he talks off the cuff, the worse he does. she ab vessel for america's anger not an outlet for his own personal rage. it's a great piece. it's -- frank luntz, his view of how trump can get himself over the line saying because of the electoral college breakdown, secretary clinton is still the
favorite but polls are narrowing. some tips on how trump can capitalize on that momentum. they have changed his image a lot. a lot of articles written about how he has become more presidential with his new campaign advisors, you don't see as much of off the cuff sort of remarks that you used to get at the rally in the early days. >> interesting to see his health announcements that were expected today. we're approaching the top of the hour, so the team is getting ready for "squawk box" in new york city. brian sullivan joining us with a look at what's coming up. good morning. >> good morning. thank you very much. listen, you guys have been talking about the potential for that bayer/monsanto deal. we could get that $66 billion deal to cross sometime during the morning if it does, we'll give you the headlines, the deal, the reaction. we'll continue our coverage from delivering alpha. you have been hitting the
comments from ray dalio, carl icahn, we'll follow up on them. and volatility is back. it really was a snoozer of a summer no the fsu summ summer, now the futures are moving. is it fed related? election related? oil related? we have delivering ail fashlpha markets and your money. it's still dark outside. a lot to do. i don't need to complain to you guys about getting up early. you actually, i don't think, go to sleep. >> of course we do, brian. the focus for us always is getting well rested to deliver "worldwide exchange." >> in the dark, as always. >> you've been in america already too long, my friend. >> great stuff. look forward to it. "squawk box" in ten minutes time. still to come, the big factors likely to drive the
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welcome back to "worldwide exchange." we're higher to the tune of about 50 points for the dow. of course yesterday we saw significant declines, about 1.5% for the dow, 1% for the nasdaq. joining us is ken cayman. volatility is back. is that going to continue for the rest of the year? >> yeah. i would think it would be because we will be headline driven for the rest of the year. we spent the summer with 40 sessions not seeing the market gain or lose more than 1%. the market is getting nervous that we were banging our head on the ceiling. my take is that we were consolidating the gains that we roared back from through the brexit debacle. and we will see now much more headline driven angst as the fed grinds their wheels and as the election gets closer. >> do you see this recent bound of turbulence having do with the trump momentum in the polls or
chock it up to the fed and bond rates move? >> there's no surprise the market would be more comfortable with hillary clinton because she's more of a known entity, where trump is the story of the day. the markets don't like going from story to story. there's no doubt the big story has been the fed. as i was preparing my notes today, i looked at my notes from last september, and last september i was saying i don't believe the fed will raise in september. they'll probably wait until december. i wish they would get it over with now. >> let's talk about the move in the bond yields. expectations for rate hikes have slipped in the last week or so. bond yields have continued their march higher. is that a worryi ining move? does it suggest the bond bubble is about to move? >> i think a number of things. one is it's accepting the inevitability that rates will be moving up, but also evidence
that the fed doesn't have the control of the curve they would like. people are just so starved for yield. any time that something comes up that scares them that says the bubble may be bursting, they're running from it which is having an effect on yields. there's just a lot of noise in the marketplace, because you have people on a hairdunn trigger. >> at mso you have been buying financials and technology. both have outperformed and have a rotation going on. the question is can it continue if we get heightened volatility? >> i think the financials are interesting in that they have the strongest balance sheets they've ever had. whether they did it on their own or bludgeoned to do it by regulators. you have to look at fact they're stronger -- >> you could have said that for months. >> i have been. but it's a much longer term play. as interest rates hopefully start moving back up, they will
get pricing power. >> finals having a good summer, they've started to slip again recently. part of that with the wells fargo scandal. is this a buying opportunity for the banks and for wells specifically? >> i'm not going to make a call specifically on wells. i would say if you have a longer term outlook here and are looking to get past the election season, owning the financials into next year should do well. we will start to see finally a gradual uptick in interest rates that we've been waiting for. the economy is doing better. as we're getting these conflicting reports from the fed speakers, which i wish they would stop doing that, it's because we are starting to see signs of strength. >> great stuff. thank you very much for joining us. >> thank you. >> ken kamen. >> let's highlight what we're watching. i'm watching apple. the sole outperformer on the dow yesterday. making a move up. should be bullish for the overalomar ket. doesn't seem to be correlated to the market specific to good iphone sales.
. good morning, global market jitters, we'll tell you what's keeping some of the world's most powerful investors up at night. and an apology from john stumpf saying he's accountable for abusive accounting practices at the bank but is not ready to resign yet. and e-mails hacked. colin powell calls donald trump a national disgrace in an e-mail series. and the former secretary of state says the hackers have a lot more. it's wednesday, september 14, 2016, "squawk box" begins now.
♪ live from new york where business never sleeps, this is "squawk box." three days. >> still crying. >> good morning. welcome to "squawk box" on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. you can see this morning once again we see a move close to 50 points for the dow. this time in the upward direction. this comes after the dow was down by about 250 points yesterday. we have seen three days in a row where the dow moved 200 plus points. in one case almost 400 points. a bit of volatility creeping back into the market. this morning s&p futures are up by 5 points. the nasdaq up by 15. overnight in asia, the nikkei closed down by 7.5%. hang seng was down slightly.