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tv   Worldwide Exchange  CNBC  November 2, 2016 5:00am-6:01am EDT

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. good morning. a world of worry. nervousness about the u.s. presidential election and fed. a developing story. microsoft says hackers linked to the russian military have exploited a windows flaw, the latest on that straight ahead. plus chicago stays alive, the cubs top the indians to force a deciding world series game seven. it's wednesday, november 2nd, 2016 and "worldwide exchange" begins right now. ♪
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good morning welcome to "worldwide exchange". on cnbc. i'm sara eisen. >> we'll wing it. we don't need cues. we don't need breaks. very good morning from me as well i'm atrocity frowilfred fr. >> stocks threat dow down 100 points which is off the loss but looks like there are more losses to come. dow futures down 71. nasdaq futures down 14.5. s&p futures are down about 8 points as well. so risk aversion reigns. nothing what we've seen in the vix. this election less than seven days to go is jolting the markets. investors worried about the u.s. presidential election. today's fed decision. wall street so-called fear index gives some good insight to story. vix surging above 20 yesterday. that was a key level.
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s&p 500 is down less than 2% during the same time. traders note that suggests more volatility is on the way. clearly buying of protection in the short term for these wild stock swings and the vix move has been much bigger than the s&p 500 which is something to watch. >> more of a momentum and volatility. index yesterday down less than 1%. six sessions in a row of declines for both the s&p and the nasdaq. the dow down four in a row. it's high liked that momentum. we're down yesterday. not the end of the world. watching yields closely because of course we touched, almost touched 1.9% a few weeks ago, we're back down 1.806. we've seen a traditional risk off trade in the last couple of days, equities going down, bonds being bid up so yields therefore moving in the opposite direction. >> investor unease spilling
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into asia. stocks dropping over there. we saw this big move lower in the dollar and that made the yen strengthen. that hurt the japanese stock market to the tune of 1.75 percent lower. hong kong closing lower. as for the currency trade the dollar broadly was lower across the board except for the mexican peso which is down more than 3% since friday. and there's a little bit of a relief as well. euro stronger again against the u.s. dollar. 1.08. the pound is sort of beating to its own drum but stronger also against the u.s. dollar this morning by .2 of a percent. there's concern that in a world of trump or rising probability that he becomes the president, the dollar might not look so safe any more. that's what the currency strategists are figuring out. usually you go to the dollar during risk aversion. >> although bonds have been bid
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up. we're debating would u.s. debt seem less attractive. we'll know in a relative risk off trade it's the equities being sold and bonds being bought. brexit we could see that continue on a trump election victory if it happens and then unwind some months later. that initial trade was buying of uk gilts will we see the u.s. treasuries have been bought. >> a fed day. that has to factor in at some point after the reaction of the fed statement today. we'll see as we start to get more polls for election. the trade in europe is weaker. we have lower oil prices which has weighed the dax down almost a full percent. more than a percent decline for italy and spain. ftse 100 bucking the trend it's down the least of the major averages across the continent at half of a percent.
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>> broader index down 1%. asia down sharply this morning. in term of the sizes of the moves more around the rest of the world than u.s. equities. the momentum we're seeing in u.s. moves as opposed to the prices. the american petroleum institute reporting crude inventories rose. this morning we'll get the energy department's official inventory data. oil prices soft again, 1.2% down for wti, 46.1. a long way from that $50 a barrel other people saying supporting index was 47, 48 and we're below that. gold prices gained 1.2% yesterday. up again today. about 0.76%, just shy of 1300. >> there's the uncertainty factor. the fed and jobs data on today's
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agenda, the october adp employment report out at 8:15 eastern. the forecast is for increase of 170,000 in private payrolls and fed wraps up its two day meeting today. the policy statement due at 2:00 p.m. eastern. no janet yellen news conference this month. traders will be parsing that statement. catch complete coverage of the decision and the global market reaction right here on cnbc. earning central, alibaba, time warner and estee lauder reporting earnings. we're knee deep in earnings season and getting some big moves, for instance health care not as hot. yesterday pfizer weighed on the dow biggest loser. three things to watch in facebook's report this afternoon.
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>> reporter: good morning. definitely one to like for sure. the street look being for facebook to post results of 97 cents a share compared to 57 cents a share last year and revenue of about $7 billion which would be a 54% increase year-over-year thanks to strong sales and ad growth. here are the three things to watch. first keep an eye on the advertising number. clearly a big driver of facebook's result. some analysts see instagram's momentum leveling off. user growth stat. active users and whether those users are on facebook's apps the. he sees monthly active users increasing 14.5%. third thing to watch outlook new product launches such as marketplace and craigslist features. messenger is longer term plays. listen for more color and plans for those units.
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taking a look at the theirs, outperformed s&p and up 23% year-to-date. >> facebook, alphabet, amazon hitting record highs in the month of october. apple on the other hand hasn't seen a record high since april of last year and now in correction mode, 20% off the recent highs. dow yesterdaying slipping below 18,000. apple moving right down there with it. >> absolutely. significant moves because of the political sentiment. can facebook buck the trend. >> investors get excited about that apple quarter. >> i think yesterday's moves was definitely, it was broad. it was led by the polls coming out and suggesting this is a much closer race. another story, microsoft says russia linked hackers are exploiting a windows flaw. the hacking group widely known as fancy bear has been linked to the russian government and
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previous u.s. political hacks. the bug was revealed on google and has caused some friction between the two tech giants. google said it gave microsoft ten days to fix the issue. microsoft said it would be releasing a fix on november 8th. russian president vladimir putin is trying to push microsoft and its products out of russia. nbc news reportsing putin is planning to replace foreign software with domestic alternatives and has already blocked linked in. elon musk making his pitch to purchase solar city. he argues the merger would add half a billion dollars in cash over the next three years and contribute over $1 bill thrown revenue in 2017. musk has described the deal as a no and prayer and says it paves the way for a carbon free energy and technology firm. here's what he said last night.
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>> for those that predict about outcome how could they have been predicting the outcome for tesla in the past. if their batting average is zero you should really question whether their future predictions are going to be better. >> shares of tesla down by about 10% since the deal was made public in june. shareholders will vote on a prosed transaction on november 17th. some other stocks to watch. tableau missed its target. electronic arts edging past forecast. now raising its full year guidance. ea sales outlook for holiday sales is slight leadership below estimates. pioneer natural resources
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reporting lower than expected profits in the third quarter. higher costs offset an increase in the average selling price and sales of its oil. the company boosting its 2016 production targets. >> more stocks to watch. gilead's third quarter profit fell. gilead is maintaining its full year guidance. u.s. steel's third quarter results fell way short of forecast and the company is cutting its full year outlook. still planning to recover from unplanned outages. shares down 8.6%. zillow is reporting better than expected third quarter results. it has two-thirds of the web and mobile internet market. shares flat.
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>> valeant says it's in talks to sell its assets. reports have surfaced that japan's takata pharmaceuticals is interested. that could raise $10 million. there was a little bit of concern that salix is a core asset for valeant. they did pay more than 15 for the asset not too long ago. valeant continues needs to put out a road map for growth. >> and cash in. still to come the fear index we'll talk more about volatility and which investments historically do best in times of wild swings. stay tuned. you're watching "worldwide exchange" on cnbc.
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exchange". if you're just waking up let's get you up to speed. yesterday we saw declines linked to politics, polls getting closer to a threat of a donald trump spooking investors. we only lost about 1.6, 1.7%. volatility did spike and we saw significant repetitive days of declines but the declines haven't been too severe. six days in a row for the s&p and dads, four days in a row for the dow. not too significant in term of
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the size. about a quarter of a percent for each of the indices. oil prices have continued to slip for different reasons than other major off risk trades and we're continuing that slide. 1.2% for wti, 46.1. >> that was a lot of notes. i thought we trained you. now to today's trade of the day. the volatility or vic rallying on election uncertainty. we crunched the numbers to determine the best trade if it keeps moving higher over the next week as we approach election day in theory. we found that these etfs should rise. they rise during times of extreme uncertainty. gold, treasury yields and short the market. for more go and check out cnbc pro. sorry. you said a lot of notes. >> my bad.
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when i'm over there by the wall i think i'm more far away. it happens often during the breaks. speaking of volatility, dan loeb writing a letter to clients saying surprises have shaken the market. ahead of next week's election he argues it's too soon to say what will happen but we may see surprises the battle between clinton and trump being the most bizarre election in the history of our country. how will it shape growth ain't rates. he's not expecting a recession but may soon long for 2% gdp growth. doubleline posted its first outflow. it had outfloss of 33.2 million. doubleline founder known as the bond king thinks bonds are headed towards outflow territory
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saying rising rates mean negative returns are developing. when we come back today's political stories asser with count you down election day less than one week to go. investors are certainly paying attention. >> they are indeed. first as we head to break here's today's national forecast from paul goodloe. >> we're dealing with a late summer-like middle fall. rain showers in chicago. didn't dampen the cubs last night. game seven in cleveland looks fantastic. 70 back at home in chicago. thunderstorms this evening, this afternoon around the dallas area. 83 degrees. you should be in lower 70s upper 60s. atlanta another detain 80s. this should make 173 days so far this year. even new york city close to 70 in early november. this is definitely some warm
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weather across the region. pacific northwest this is more like winter for you and fall. more rain showers for you but dry. 81 as you head towards southern california. we're back with more "worldwide exchange" right after this. this woman owns this house,
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with new cabinets from this shop, with handles designed here, made here, shipped from here, on this plane flown by this pilot,
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who owns stock in this company, that builds big things and provides benefits to this woman, with new cabinets. they all have insurance crafted personally for them. not just coverage, craftsmanship. not just insured. chubb insured. welcome back to "worldwide exchange". good morning. let's get you up to speed on the
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market action. after a selloff yesterday for stocks selling continues early this morning. s&p 500 down 7. nasdaq down 13. dow down 65. it is fed day. there's also a lot of angst about election with six days to go. the dollar has been under pressure. got hammered yesterday and continues to sell off this morning with you're theo moving back up 1.1076. the pound also strengthening against the buck, 1.2257 ahead of the bank of england tomorrow. oil prices moving lower after an api inventory report last night showed a build. government data in the u.s. this morning. wti back to 46.06. brent 47.54. gasoline prices giving back giant gains we saw yesterday.
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>> 46.5. colonial pipeline said its explosion occurred when a crew put in a valve. one worker was killed and five others injured. the company says the fire is still burning without could re-open the line as early as saturday. the pipeline carrying more than 3 million barrels of gasoline and jet fuel between the u.s. gust. gas futures speck 15% but pared those gains as colonial doesn't expect a long outage as you can see gas down 1.7%. in line really with declines in oil prices. to politics, six days to go until the election. hillary clinton and donald trump are rallying supporters to vote early. tracie potts joins us with the latest from the campaign trail. >> reporter: millions already have and that could be a problem for donald trump's latest salvo to democrats to try to change their vote. the focus for many of them right
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now the battleground states, especially florida where things seem to be right down the middle. with six days to go frustration is mounting. >> i am sick and tired of the negative, dark, divisive, dangerous division and behavior of people who support donald trump. >> reporter: clinton's reaction to a trump protester her immediate concern the fbi's probe of her top aide's emails more than a quarter of independent voters say it makes them less likely to vote for her. sources tells nbc fbi is nowhere near done and may not have results by election day. >> get out and vote on november 8th. >> reporter: with 26 million early votes already cast donald trump surging democrats to go back and change their votes before election day. >> if you live here or in michigan or pennsylvania or minnesota, those four places, you can change your vote to
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donald trump will make america great again. >> reporter: trump is rolling out $25 million in ads in 13 states. all but one voted for president obama. he's in florida today where polls show early voters and support evenly split. clinton campaigns out west in arizona and nevada. she's rallying female voters. >> don't be used. don't be exploited. >> reporter: he's bearing down on obamacare with less than a week to go to make their case. a big push from clinton in this last week almost am her surrogates are out today. the president, vice president, chelsea clinton, bernie sanders all campaigning for her today. >> final addition they bring out all the big guns. thank you. tracie potts in washington. chance of winning 538 which is what i check, 71% for hillary clinton, 29% for donald trump. >> something has changed in the
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last week which is that the polls are a lot closer. we've made comparison to brexit and the key difference is the electoral map. it's not a national poll as brexit was. but one of the key factors that have been different is the polls were a long way apart. the polls are now close but betting odds are still wide. stimulus lar to brexit. >> wide but moving. unlikes brexit which had more than a 90% chance. i get your point. >> there are swing factors like turn out, like people that don't necessarily turn up in the polls that can vote which compared to brexit. the electoral map and geographical split. >> the market is pricing in that risk of almost 30% chance. in other washington news obamacare health exchanges, opened for 2017 enrollment. the process began yesterday.
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the health and human services said the site handled 50% more applications compared to the first day of enrollment last year. this comes despite what we've been reporting an increase in premiums. the chicago cubs taking care of business last night, forcing the cleveland indians to a game seven. addison russell grand slam run putting the cubs up. final score cubs 9, indians 3. game seven is tonight in cleveland. reports say standing room only tickets are going for $4100. >> cubs fans have been waiting a long time flying to cleveland for this. when we come back this morning's top stories including a world of worry for stocks from election to fed. we got it all covered for you. stay tuned. your wall street set up. you're watching "worldwide exchange" on cnbc. tempur-pedic .
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good morning. stocks under pressure. nervousness about the u.s. election. >> double trouble adding to investor jitters the fed meeting a decision due at 2:00 p.m. eastern. >> google magic, tech giant letting harry potter fans transform phones into wands. we'll bring you details of that. it's wednesday, november 2nd. you're watching "worldwide exchange" on cnbc.
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♪ good morning. welcome back to "worldwide exchange". i'm sara eisen. >> i'm wilfred frost. good morning to you from me as well. let's get straight to global market action. yesterday we saw declines six days in a row of declans for the s&p and nasdaq, four days in a row -- some s&p and nasdaq six days in a row, dow four days in a row. 0.6% roughly the size of the decline so not too significant by that measure we're looking at declines once again which just extended the last half an hour. we were 50 points down for the dow now down 72 points. let's look at the vix. a lot of attention on that yesterday. rose to 20. below that level today. but still edging higher as you can see overall.
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we have momentum in selling. >> it's happening so quickly to what we're seeing in the stock market that has people taking note and clearly traders adding to their protection over the next week or so. is size of the declines were more muted than we've seen around the rest of the world. europe was down 1% yesterday. down sharply again today. you can see about 0.8%. 0.7% for germany and france respectively. asia down because of dollar weakness and yen strengthening and that's hurt the nikkei. hong kong down almost 1.5% catching up with wall street declines and fears about possibility of donald trump winning, course, the mexican some is one gauge but asian trade would be affected we expect by a donald trump
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presidency. >> merging markets at risk, a lot of traders say. as for the broader picture oil is under pressure. api noted a build in stockpiles. we'll get u.s. government data later. wti crude is back below $46 a barrel, retracing its steps higher. it is down 1.6%. brent is down to 47.40 down 1.5%. gasoline prices giving back yesterday's double digit gains. buying a safe-haven government bonds which is interesting when you get along selling of the u.s. dollar. buying the ten year and yields go below 1.80 ahead of the fed statement at 2:00 p.m. eastern time. weak dollar across the board. weaker across the euro which has gone above 1.10. weaker against the yen,
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safe-haven there at 103.60. and the peso this is the ultimate trump proxy it has lost 3% of its value since friday when those headlines hit that the fbi is looking into mr. e mails of hillary clinton. that's the dollar spiking against the peso over the last week or so. it's not at a record low, the peso. we saw that back in september. it's moving south as trump's momentum gains in the polls and betting odds. trump seen as a negative for the mexican economy said he'll re-open nafta and make mexico pay for a wall. either way that's the one to keep an eye on. gold is trading at a one month high on the rising uncertainty factor. it's up another three quarters of a percent. >> fed and jobs data top the list. october adp report out at 8:15
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a.m. eastern. the fed wraps up its two day meeting with a statement due out at 2:00 p.m. alibaba, time warner and este lauder and after the bell we'll hear from facebook, qualcomm and aig. let's talk more about markets and the impact of the election drawing closer. tom, good morning to you. thank you for joining us. it is about time we saw the market react more to the election or is this an outsize worry. >> we've been waiting to see this kind of reaction all along. so far through the campaign cycles, through the primaries, the market has been quite muted in its response. we're seeing a little bit of volatility. you're seeing the vix tick up a little bit. interestingly, though, if you look back to four years ago when obama was last elected, we're actually right about where the
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vix levels were then. given the candidates involved i would actually expect the vix to be a bit higher than where we are now. >> most betting sites, 538 have a trump chance of 20% to 30% at this point. is that what's getting priced in or do we have more down side to go? and does that necessarily conclude that a trump presidency would be a wild card for the market? >> i think you have to conclude a trump presidency is, versus a clinton presidency definitely the more the wild card for the market. i would argue, actually the reason volatility might not be so much about just the anxiety around the election but also the anxiety building about what is just past the election, which is the next fed rate hike and policies that could be implemented by -- >> isn't that priced in. do you think there's anxiety? >> we saw this last year when we
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had the december hike in the volatility immediately after, i think there are some market participants that would thereof see that decision pushed off and off into twist. >> how you position yourself at the moment given these headline macro risks. >> few things. just from a general asset allocation standpoint we haven't made any dramatic shifts in our portfolio, relevant stocks to bonds. we did a few things around brexit. we trimmed development international back. within sectors there are ways to play the election. i think one of the most noted one is potential impact on hillary clinton would have on pharmaceuticals and biotech. that's actually an area we've opted to step into a bit more recently given the recent weakness valuations are tremendous and if you can find
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companies like allergen that have great pipelines and offered great valuations right now we see them as an opportunity to step up there. >> aren't they posting weaker earnings relevaative to the resf the markets? >> certainly has been this season. there's obviously volatility about the pricing and where that's going go. again, our view as long term investors for boston private clients we're not looking to the next quarter we're looking to the many quarters beyond. if we can get what we think is a strong franchise with a great pipeline and own that for many years we'll take that. >> there's a story this morning microsoft has been exposed to a russian hack. you let that stock go despite that? >> yes. smft a name we own very broadly. we own it in our dividend portfolios. we own it in our core equity portfolios. continues to grow that dividend
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very aggressively over time. great long term holding for a portfolio. this particular bit of news wouldn't impact our views. >> anything the fed could say today that would change your opinion or make you think differently one way or another? >> short of them saying like we're not going raise rates any time soon, i think this particular meeting is all about setting the stage for december, and making people quite certain, you know, that september will happen so that we process that. the december rate hike. >> if you remember, guys, the time, last year when this happened the meeting before the december meeting, the fed put explicitly in its statement quote determining whether it's appropriate to raise the target range an its next meeting. do you think they will do that again today >> they are very good at telegraphing things and i think this will be incredibly well telegraphed for december.
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>> thank you. now some stocks to watch today. square reporting third quarter revenue rose 32% beating forecasts. the mobile payments company is raising its full year revenue outlook. etsy posting a narrow third radiator loss. online market lays for vintage and handmade goods is raising its revenue forecast. the ceo will resign this coming march. that share price up 1.4%. match group said third quarter profits rose. the number of users rose. shares down 10%. and michael johnson will step down next year of herbalife. shares down 2%.
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to some top trending stories. jimmy kimmel spooking kids again. thousands of parents sending in clips to the shove their kids reaction to finding out that all their halloween candy is gone. they went viral. here's a look at last night. >> we ate all of your candy. >> oh, no! [ crying ] >> step up. look at it again. all gone. [ crying ] >> have you seen this before? >> no. >> he does this. >> this is too much. it's too cruel. >> it's segment hey jimmy kimmel i ate all my kids halloween candy. pretty cute. >> it's not cute. it's cruel. >> it tells them it's a joke. >> let's see the happy bits. i can't take this any more.
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>> that's the funny part. these bratty kids. >> you're cruel. i'll steal something like your shoes or iphone. your pink iphone. right. next trending story harry potter fans can transform their phones into magical wands. you can conjure spells on any android device. okay google. users can utter magic phrases to turn their phones flashlights on and off and also mute sounds nene ti if i occasions of your co-anchors. the promotion is tied to the upcoming harry potter spin off movie fantastic beasts and where to find them which hits theaters next week.
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and command. you're not a big harry potter fan. >> no. were you. >> i was. the books were outstanding. the film sort of. predictions from citi on the u.s. election. stay tuned you're watching "worldwide exchange" on coroner nbc. be back in a couple of minutes.
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now to this morning's must-reads. sara is not good muff to make the cut. in "financial times," my pick,
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political activist at city, the police is titled investors face political risk whoever wins in the u.s. election. mr. trump may be heading to defeat, but the prevalence of low trust, identity politics and demographic divides across the developed world suggests that he will not be the last nonmainstream candidate to come to power. this conconsistently jays of risks will be in evidence before elections next year in germany, france and the netherlands and will have a significant impact on the brexit negotiations. moreover a clinton presidency is highly likely to be marked binary-continuous investigations. >> some of these wild card things happening. lots of political rhetoric that can disturb markets something that didn't used to happen in the developed world. she's saying it's here to stay particularly in europe next year and likely in the u.s. whatever the result of the elections snap how do you price that in? to me it says volatility in
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currencies. that's where you see the currency market was paying attention this election way before the stock market and that's where you see the relative sort of values of the different countries. >> we'll have to read the "financial times". >> great must-read. so good i didn't need to do one. when we come back decision day for the fed. no change expected. but investor want to know what hints janet yellen and company might slip into that accompanying statement. we'll get an analysis from bruce kasman when we come back. honey, aren't we having friends over? it reeks in here.
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welcome back. we're called lower at the open. dow by 65 points, following 0.6 or 0.7% declines yesterday on a day where volatility spiked. we also have a look around the rest of the world. european shares are a bit lower still and have declined more than u.s. markets down.7,.8% for german trade.
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asian trade was sharply lower. significant move in the nikkei as the yen strengthened for two days of dollar weakness. nikkei soft to the tune of 1.5%. we're approaching the top of the hour. the team is getting ready for box. >> good morning. we like you guys will be following the market jitters as the polls are narrowing between two presidential candidates. we have holman jenkins editorial writer for the "wall street journal" who will be with us to talk about the race and what will happen in the next less than a week. it feels a little bit like groundhog day. it's getting very close. getting very tense. and the markets are definitely reacting to that. id li i would like to say you should go back and watch all of the jimmy kimmel halloween candy videos from the last five years and tell us if you still think it's cruel or if you get a laugh
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out of it. they are pretty good. >> i got a laugh but it was a cruel laugh. we needed to see some of the happy bits at the end. >> someone who is a godfather to multiple children just makes you aware that manners are very important. the reactions of a lot of the kids are very different. >> that's probably true. i get that side of it. what i saw i thought was amusing but cruel. thank you very much. we look forward to "squawk box" in nine minutes time. >> some people can take a joke better than others. fed will wrap up a two day decision with a meeting at 2:00 p.m. eastern time. joining us now is bruce kasman. the last time at this time last year before the first interest rate hike in a decade the fed outlined that it was considering doing it at the quote next meeting. couldn't get more explicit than that. do you expect the same kind of language out of today's
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announcement? >> no. they don't need to do what they did last year partly because they put in a strong statement at the last meeting. last year at this time the market hadn't been pricing in a large probability of a hike. they felt at the time a need to move more forcefully. >> my question is if they don't do that will they get accused -- it's a lose-lose situation. will they get accused of being a little politically focused watching the results of the election and maybe seeing that as big uncertainty factor on the economy, the markets and their policy? >> well, i think, obviously the fed is going to be signalling to us that they are likely to be moving in december but not giving us any commitments. there's obviously a case not a large case that financial markets move after the election, something in the data, two employment reports before the meeting could throw them off course. this is not a move that's done. it's not a political call, it's a call about how they see the
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politics influencing markets in the economy that has a maul role to play here as we look towards the december decision. >> bruce, we've seen of course the $rally in expectations of a fed hike and sell off more recently because of political fears. is that justified? do you think the dollar can suffer more as we get closer to the election? >> i think it's pretty clear that if there was a trump victory the degree of uncertainty would have a market effect and that's what we're seeing as the race tightens. we'll see the outcome of the election next week. the fed will process the markets and process the data. the likely scenario is we're sitting here and they make a move in december. that's what they will give us in the statement a further stepping towards that decision. >> is the market moves as we approach the election if we see a trump victory one supportive of bond prices and yields falling? >> i think if we get a trump victory and the degree of
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uncertainty that that will create i think it's going to be a negative for u.s. assets which means negative for u.s. dollar. effect on bond markets is ambiguous. i wouldn't push for a significant rally on the bond yield. >> short term and long term is that your view? >> long term we have to see how that uncertainty plays out. our view is the economy will do reasonably well over the next year. so our baseline view is that yields do move higher. >> you put out an interesting note about the end of the disinflation shock that's done so much damage on the u.s. economy, held back earnings and end growth and inflation. do you see us at an inflection point and what's the impact on the markets? >> i see that. it's obviously a global story as well. from the u.s. point of view profits that have been falling for a year and a half.
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part of that is the disinflationary shock. we're not looking for a big boost to growth. relative shifts to spending will have a big effect on the company in term of how we perceive it. bruce, you said ate global phenomenon. we've seen decent moves in european yields in recent weeks both in relative size and absolute size p.m. is that something that should be taken as a positive. can it help banks or said big negative and will it derail equity markets? last time we saw moves of this magnitude that was the effect was equity selloff. >> if we're right that there's a fading of disinflationary forces and the market is responding to that with higher expectations of growth and expectations of normalization of inflation, a curve will be positive for growth. it's about what the source of that move is. we think what's happening is
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constructive overall. >> bruce, good to have you here this morning. thank you for weighing in. bruce kasman chief economist at jpmorgan. on a programming note don't miss complete coverage of the fed announcement. let's check in on markets. futures at the moment called lower. we've had of course declines over the last couple of days, in fact six days in a row for the nasdaq and s&p. dow four days in a row of declines. we're expected to add another day of declines. so what are you watching today? >> the fed. got to be the fed. i don't think we're expecting anything specific on that but they always have the chance to surprise the market. as bruce is saying the guidance as to what we can expect not just for the next couple of months but through next year. >> i'm watching facebook earnings today. that's a bright light in the stock market and with earnings
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lately. we'll see if facebook can live up to high expectations. the stock not too far from at that record. we got it all covered. that does it for us on "worldwide exchange". "squawk box" is next.
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good morning. gobble stocks are selling off but a busy morning for jobs data could provide some clarity at least in terms of that before the opening bell. we'll have that uncertainty about the election. developing story, microsoft says hackers linked to russian military exploited a windows flaw. details straight ahead. final countdown is on. americans already heading to the polls but in earnest in six days. homestretch is new muddied by fbi investigations and the uncertainty on what will finally happening is weighing on the markets. it's wednesday, november 2nd,
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2016 and "squawk box" begins right now. ♪ >> announcer: live from new york where business never sleeps this is "squawk box". good morning welcome to "squawk box" right here on cnbc. i'm andrew ross sorkin, joe kernen and kayla tausche is here with us. our top market story uncertainty. investors are worried about the u.s. presidential election and today's fed decision. wall street's so-called fear index giving us good insight. the vix spiking 40% over to last six days. take a look at u.s. equity futures that hour. what you're looking at is a bit of a down day. dow can open up off 43 points. s&p opening down five points and nasdaq opening down 7 points. hang seng also falling nearly


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