tv Worldwide Exchange CNBC November 16, 2016 5:00am-6:01am EST
good morning. markets now, the dow on a seven-day winning streak closing at another new all-time high. oil shock. crude prices pulling back following a huge rally. we'll ask if an opec deal is really in the cards. and washington watch trump supporter carl icahn weighs in on twitter on two possible administration picks. it's november 16, 2016, "worldwide exchange" begins now. good morning. warm welcome to "worldwide exchange" on cnbc.
i'm wilfred frost alongside sema mooty. yesterday markets continued their trend of gains, the dow with its seventh straight gain in a row. the s&p and nasdaq were up 1%. energy was the outperformer yesterday. that was not a trump related rally. oil prices gained 5%. the likes of amazon, google, microsoft did well yesterday. slightly changing the post trump tune given that tech was one area that had relatively suffered compared to the rest of the market. we still had gains yesterday of about 0.3% for the dow, 1% for the other two indexes. calling it slightly lower this morning by about 20 points for the dow, a couple points for the
s&p 500 and seven for the nasdaq. the ten-year note paused for breath yesterday, the two-year note continued to march higher. the short end picked up a bit, the longer end stopped its march higher. that's abated again today. we're seeing it kick off again. we're at 2.258 for the ten-year note in yields once again rising up. that short end, two-year, above 1%. it's now at highs since around january. look at european stocks, off session highs. the swregerman dax trading in negati negati negative territory. bayer, one of the big movers, down about 5%. hugo boss, also under pressure here. looking at the ftse 100, down fractionally. interestingly enough, italy, the mib, an outperformer.
in asia, an interesting move in the japanese market. the nikkei rising to a 9 1/2 month high as a weaker yen underpinned exporters. higher japanese yields helping some bank shares in japan. that brings up questions as to the future of kuroda's bank of japan policy with the yield on the ten-year japanese note back above zero for the first time in eight weeks. >> certainly benefiting from the stronger dollar against the yen. the nikkei continuing its run. 9 1/2 month high. oil prices are the main driver. wti ending the day up 5%, that was on further opec talk that we might well see the deal delivered. the opec meeting coming up at the end of the month. also talk there might be a special meeting of some members this weekend. either way, 5% higher yesterday.
down now three quarters of 1% today to 45.5. a look at the dollar as well. the nikkei higher again, that's because the yen is softer again. that's the only real big mover. 109.55. the broader dollar index hit a high of 126 yesterday. the highest level since december. worth pointing that out. the highest level since before the first rate hike. of course now futures markets do expect a rate hike in december. earlier it was said the euro would have been ripe for rebound against the dollar at this price, however it's anchored by political pressure in europe. >> it's seen as the next political shock after brexit, the trump win, will we see the same thing happen in italy. >> december 4th. at the moment, the polls are suggesting that the results will
go against the prime minister, matteo renzi. it's more a case of a shambles than outright collapse in terms of the political system there. >> they're not voting on divorcing the european union, it's on overhauling the government. if renzi doesn't win, there's a strong chance that the five-star national movement, the populist party would take over. they have beened advocating for separation. >> we want to poeint out what we've seen in the iron ore market, that spiked up 23%, with the idea of there would be more infrastructure spending, and oil prices would do well. since then they've fallen 9%. the run-up on the trump related policies, and then a fallback, does that sitting we might see that follow through? equity markets have not followed, they continued their
march higher yesterday. the last 36 hours, iron ore falling 9%. gold prices are a bit higher at 1226. >> among the top corporate stories, snapchat confidentially filing for an ipo. the messaging app is expected to go public as soon as march. reports say the company could be valued between $20 billion and $25 billion, which would make it the largest ipo since alibaba went public in 2014. the chinese e-commerce giant was valued at nearly $171 billion. snapchat expected to be the largest u.s. tech ipo since facebook's 2012 debut. a trio of economic reports on the ajen da. the october producer price index at 8:30. headline ppi forecast to rise 0.3%. at 9:00 a.m., october production followed by the monthly survey
from the national association of home builders at 10:00. minneapolis fed press, kneel kashka neel kashkari speak today. lowe's and target after the close. landon dowdy joins us with three things to watch from target. the big retailer to keep an eye on. >> that's right. the street is looking for target to post earnings of 83 cents a share on revenue of $16 billion. here are the three things to watch. first sales and pacific. analysts expect the chain to continue to struggle in these areas due to a difficult retail environment. same-store sales are forecast to come in flat to down 0.2%. investors will want to see whether management's efforts to focus on a more balanced approach with their pay less messaging is helping to reinvigorate traffic. second, watch digital. target has been boosting its
online presence to compete with the likes of amazon and walmart. but sales growth on the web has declined for two consecutive quarters. so look for clarity on how target can spur online growth and how substantial that might be to change the trend. despite target's efforts to fix its grocery business by adding organic items, grocery sales have declined. the company is ramping up marketing in an effort to gain more market share. shares of target up 4.5% in the past month. back over to you. >> thank you very much for that. more stocks to focus on, gap naming a new cfo. terry list-staal will be taking the job in january. agilent posting better than expected growth in revenues. the lab equipmentmaker is citing post equipment uncertainty. up 0.8%. and eu antitrust regulators
are expected to give clearance to abbott lab's $25 billion bid for st. jude medical. the european commission is due to make a decision by next wednesday. no real movement if those share prices. other stocks to watch, walt disney upgraded to buy from hold at deutsche bank. the firm's price target is $112. square says ceo jack dory esey entered into a plan to sell shares over the next 12 months. total shares available for sale are capped at 7% of dorsey's overall holdings. square says the proceeds are for dorsey's tax plan and financial purposes and to help him fund a small foundation. shares of enginemaker rolls royce engines trading this
morning. they caution demand for ship engines will remain weak next year. microsoft is offering concessions to eu antitrust regulators over its $26 billion bid for linkedin. the eu commission will rule on the tie-up by december 6th. google making a commitment to a post brexit uk announcing plans for a new building in the kings cross area of london. it will house thousands of extra engineers. google's ceo says computer science has a great future in britain. he cites the country's talent pool, educational institutions and passion for innovation. >> this is seen applauded by the government and brexit opponents as a good vote of confidence that it will get investment and lots of other attractions in london and the uk. >> it's an exciting development. london was seen as the tech husband, but now expanding to a
larger player like google. right in kings cross. great tube access. reports of an iphone glitch are being investigated in china. a group said they received complaints that some phones are spontaneously shutting off. no comment from the company. a report of the global market coming up, and fed speakers out enforce again today. we will also hear from joe lavorgna. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities.
. welcome back to "worldwide exchange." let's get you up to speed in the market action. predominantly red in asia, but not significant declines. about 0.2% for the main markets like hong kong, shanghai down even less than that. nikkei holding up the bunch, up 1.2%. once again the yen is soft. the yen is the only thing the dollar is stronger against today. european stocks, sort of softening trade in the last hour. it was basically flat, just lost a bit of impetus. data out of the uk showing unemployment better than expected. either way, slight declines. u.s. futures, the dow hitting its seventh straight day of
gains yesterday. it was the relative underperformer of these three indices, up 0.3%. s&p and nasdaq up more like a p percent. energy rallied significantly off the back of oil prices, up 5% yesterday. it was more of a non-trump related rally. related to hopes that opec will deliver its production cut when we get the meeting at the end of the month. today oil prices giving up a bit of gains, nicely above $45 for wti. >> a variety of different fed speakers this week. jim bullard is in london speaking at a ubs conference. among the headlines, he suggests one interest rate increase possibly next month may be enough to bring the united states or u.s. rates to a neutral setting. bullard also says the rise in inflation expectations is a good thing from the fed's point of view. he thinks growth will be impacted in 2018 to 2020 by plans for infrastructure
spending and tax and regulation changes. joining us to discuss more about the fed's impact is joe lav lavorgen. thanks for joining us. >> my pleasure. >> you already boosted some growth estimates based on proposed policies from the president-elect trump, you think you have enough to work with at this point ahead of his inauguration? >> i do. the way i look at it, the fact that the president-elect has the congress in full form, which is unusual for an incoming republican. it will allow him to do things he might not otherwise do we have the infrastructure, also defense spending, which i would argue defense spending has a multiplier. more importantly significant tax cuts coming and a more pro business regulatory environment which will galvanize the typical animal spirits which
have been lacking for most of this cycle that should push growth up to at least 3%, possibly more. oi it's early, but i wanted to position myself for much more risk taking in markets next year and economic activity. >> so the sector performance the last ten days or so suggests that it's not just broadly going to see a big gdp growth, banks have done well, utilities and tech haven't. that suggest there's are also downside risks of the trump presidency, particularly around trade and immigration. those factors are not concerning you? >> no. here's the thing. my guess is there's a whole list of things president-elect trump would like to do. i'm assuming that the tax cuts and the fiscal stimulus are front and center. in fact because the trump plan draws heavily on the plans of paul ryan. we know if you look back at the
reagan or bush tax cuts, these things are signed into law sometime around the summer. to me, that's where he focuses his energy. if he gets side tracked, the president-elect, and does some other things, that would be a concern. i'm guessing they'll start with the tax side first. you're right there are some winners and losers in the market, but also look at the treasury yield curve. it's dramatically steep. that's a very, very good predictor of growth that tells me gdp should be faster. >> i agree. it has steepened. an interesting thing coming out of scott wapner's interview yesterday, he felt the short end of the curve needed to play catch up and expected that to happen. and if the u.s. does start hiking rates, while rest of the development world is not doing that, there will be more dollar strength to come. do you expect those factors to come through? could that offset your positive view on growth? >> certainly the u.s. is
unsynchronized with the rest of the world. the dollar should strengthen. gary's right about that. the good news is you probably do want a stronger dollar in the sense the economy -- this is a relatively old business cycle. unemployment is under 5%. you want that dollar to take out the inflationary pressure in the system and not allow the fed to have to hike as much. i don't look at that as being a bad thing. let me also say this, 3%, low 3s next year for gdp, year after, these are not record setting growth rates. these are just rates we thought were easily doable four, five, six years ago. you look back at longer business cycles in the '60s, '80s, '90s, growth was upwards of 5%, 6%. >> lovely having you with us. >> thank you. still to come, washington watch, the latest on the trump
transition including likely picks for two top economic jobs. as we head to break, here is today's national forecast from the weather channel's jen carfagno. >> on this wednesday, get ready for big changes. they start in the west and tracking across the country. today in the east, we're running above average. temperatures hitting nearly 60 in chicago. new york city as well. a lot of sunshine out there. same thing in the south, too. smoke from the wildfires are a concern in the southeast. temperatures warm. 72 in atlanta. the west is where we see the action today. more rain coming into seattle. this system as it crosses over the rockies that will bring snow. it will start tonight, get its act together tomorrow before it gets here, we'll have record high temperatures, including 79 in denver. by thursday we're talking snow. get ready for huge swings in the weather across the country. that's your latest coast to coast forecast. i'm jen carfagno for the weather channel. "worldwide exchange" continues after this.
in national news this morning, operations at the oklahoma city airport have resumed. the airport was shut down yesterday after a southwest airlines employee was shot. 50-year-old michael winchester was taken to a local hospital where he later died from his injuries. the suspect was later found deceased from a self inflicted gunshot wound. president obama continues on
the final foreign trip of his white house term. he is in greece today. last night thousands of people marched through the streets of athens to protest obama's visit. the crowd consisted partly of greek youth and left wing groups, they held banners saying unwanted, and we welcome refugees but not obama. interesting of this foreign trip, he's next going up to germany, and there will be focus on that. so far donald trump has at least given out anti-eu messaging. not come out and made a policy on it. clearly president obama has always supported angela merkel and her stance on the refugee crisis and said a couple days ago that angela merkel has probably been his top foreign ally throughout his presidency. >> that's got to be the first
question european leaders ask president obama what should we expect when trump entering the white house. >> i don't think he knows much better than anyone else. in the u.s., the focus is on the trump transition. tracie potts has the latest. >> reporter: trump himself, the president-elect fighting back on reports now that things are not going so well in trump tower with this transition. he took to one of his old habits and tweeted about it in the middle of the night. president-elect donald trump dining out in new york after his first official security briefing and tweeting out overnight only he knows the finalists for his cabinet. mr. trump calls it an organized process. insiders describe turmoil. >> you have governor christie and his team moving out, others moving in. >> reporter: congressman mike rogers is out in what sources call a stalin-esque purge of people associated with former
transition leader chris christie. son-in-law jerry kushner wielding influence. vice president to be, mike pence, is in charge. in washington today for lunch with joe biden. >> this leadership team is unified. this entire house republican conference is unified. we are so eager to get to work with our new president-elect. >> reporter: republicans in congress elect new leaders today. house democrats put their elections off. minority leader nancy pelosi expected to face a challenge from ohio's tim ryan. >> we got our butts kicked, we need to move forward. >> reporter: and there is still pushback here about mr. bannon. also rudy giuliani is a front-runner for secretary of state, interested in the job.
steve mnuchin, the finance chair for the campaign also considered a front-runner for the treasury job. again, no official names as of yet. they could come soon. >> governor christie, who a couple months ago seem nailed on to pick the job he would want if trump won, very much an outsider now. >> no question about that. he has been demoted. doesn't seem -- not only is he not in the central part of things in terms of selecting this administration, but anyone who was associated with him now seems like they're weeding them out as well. >> thank you very much for joining us. tracie potts in washington. still to come, the top stories plus oil prices coming off the strongest one-day rally since april. the big question is what will opec do later this month. we'll talk commodities with dennis gartman among other questions for dennis coming up after this short break.
good morning. markets now, the bulls battle to add to the post election rally. the dow on a seven day winning streak. >> snapchat looks to go public. and today's top trending stories including new kid observe a block announcing a summer tour with boyz ii men and paula abdul. it's november 16, 2016, you're watching "worldwide exchange" on
cnbc. ♪ good morning. a warm welcome to "worldwide exchange" on cnbc. i'm wilfred frost alongsid alongside seema moody. your last day here. why are you running off? >> time to go back to london for the weekend. >> little brexit update. let's check in on global market action. yesterday, seven straight days of gains for the dow. albeit it was the relative underperformer. up about 3%. energy was the top performing sector. that came as wti rallied 5% on hopes that opec will deliver its production cut. opec meeting at the end of this month. european -- first, futures just about flat this morning. european trade is slightly soft.
just gained a bit of impetus in the last half hour. we are pretty much flat across the board when you balance out italy and spain's gains to germany, france and the uk's losses. asian trade is slightly negative for the markets, apart from the nikkei which is up nicely 1%. the yen is the only real mover against the dollar today. it is softer again by a half percent. that allowed the nikkei to rally 1% today. let's look at the oil market, a number of energy ministers from opec likely to meet in doha at the end of this week to build consensus ahead of the opec meeting in december. ice brent is down 0.7%. gas is slightly higher. if we look at bonds which have been stealing the spotlight.
the short end of the curve, the two-year treasury note above 1% for the first time in a year. so the global selloff which let up a bit yesterday, back in focus today. as for the u.s. dollar which has been adding pressure to the emerging market currencies, it's been holding ground here. higher against the yen and also weaker against the pound. as you can see, the euro at 1.07 against the u.s. dollar. mixed gdp numbers that we got out of the eurozone yesterday. let's look at gold. we are look at it up about a buck. $1,225 an ounce. >> the interesting thing to point out on markets yesterday, we did see the bond market march higher in terms of yield to pause for breath. we came off some of the highs we hit. today that's continued once
again. so, reigniting the moves we've seen. the only thing i would mention is iron ore's move, 23% rally to monday's close, since then a 9% slide. that's based around the likely infrastructure spend, more demand for steel. that's a high beated commodity, so far equities have not done the same thing. i wonder whether iron ore's move is a leading indicator for some profit taking. >> it's interesting to see how the base metals have been moving on china's optimism, and suddenly the focus is on the u.s., infrastructure spending from america and how that could drive not only iron ore but copper as quelwell. >> the october consumppi will b at 9:00 a.m. minneapolis fed president, neel
kashkari and patrick harker are speaking today. and a pair of retailers report earnings before the opening bell, lowe's and target. after the close we hear from cisco systems and l brands. let's discuss that oil move we mentioned earlier and other market action in more detail. joining us on the news line is dennis gartman, founder and publisher of the gartman letter. yesterday the energy was the biggest divbig e biggest driver, it was a reprieve from recent drivers which have been trump related. do you believe that oil prices can march higher? >> i'm not a believer in any opec meeting. i do believe they will comup with an agreement, but will they abide by it? absolutely not. if you learned anything from history, opec will almost always have an agreement at every meeting, but they never agree -- they never abide by it.
they always cheat and they always shall. >> dennis, good morning. given the financial distress that saudi arabia is in, there is speculation that they will be the driving force behind this opec meeting. and really try to rally their peers in t peers among other opec countries to get a cut back in production. do you think that cannot happen? >> it can't happen? >> why? >> saudi arabia is in dire fiscal straits, but what's interesting to me is the deputy crown prince, a bright young man, probably the most powerful person in saudi arabia, understands completely that oil in the ground is a wasting asset. that technology will run buy crude over over the course of the next 15 years or so. something else will take its place. he understands that fact. he knows he's better off getting whatever price he can for whatever he can get out of the
ground at what evever time theyn do so. they will get a rally t will be short in nature, and they will be sold into. if we learned anything over the past 40 years of watching opec, they come up with agreements and everybody cheats all the time. if we look at equity market moves, yesterday we saw google and amazon, some of the tech names that had suffered originally in the post trump rally, they both did well. does that suggest some other winners need to pull back? >> what has been the winner since last tuesday when the markets skyrocketed after thenys of mr. trump's election victory, steel has done well. materials of any sort. as i like to say, the things that if dropped on your foot will hurt. the basics of economic activity all had a huge rally. can they have some sort of setback? of course. did the high-tech stocks get beaten up in the past seven
days? yes. are they having a short-term rally? of course. on balance, over the course of the next several weeks, several months, perhaps several years, you want to be a buyer of the stuff that goes into economic goods, steel production, copper, aggregates, cement, things incumbent in infrastructure and probably avoid high-tech if at all possible. that's the lesson we should draw from mr. trump's acceptance speech and his comments upon infrastructure. >> do you wanted to buy the banks from where they rallied? >> yes. i think interest rates will continue to move higher. banks have been under undue pressure for the past 15 years as interest rates have fallen, as margins have narrowed. interest rate mar swrgins will n out. any corrections that you get in bank stocks you need to be a buyer. >> dennis, great stuff.
thanks for joining us. snapchat confidentially filing for an ipo. the messaging app is expected to go public as soon as march. reports say the company could be valued between $20 billion and $25 billion which would make it the largest ipo since alibaba went public in 2014. snapchat suspected to be the largest u.s. tech ipo since facebook's 2012 debut. >> you still snapchat, don't you? >> i have pulled back a bit. >> you have moved on? >> i think instagram did steal snapchat's idea. it works. >> i like both. >> just too many. >> will people switch to instagram. what does that mean for snapchat's footprint in the private messaging or private photo sharing space. we will see.
let's stick with tech. reports of an iphone glitch are being investigated in china. a group said they received complaints that some phones are spontaneously shutting off. even when half the battery life remains. the group said it approached apple about the issue. no comment from the company. walgreens says theranos allegedly voided 11% of all blood tests they provide to the drugstore's customers as part of a year-long partnership. theranos told walgreens in yune it voided 31,000 tests it conducted at its main lab. that facility failed an inspection by u.s. regulators this year. theranos also voided results from another 1,000 tests done at its second lab. donald trump's name is expected to be removed from an apartment complex on manhattan's upper west side following complains from tenants. the buildings will be renamed for their streeted as. trump was reportedly involved in
developing the complex known as trump place in the 1990s. the buildings were bought in 2005 but kept the trump place name. sam zell will be on "squawk box" today, he's the owner of those buildings. let's lock to our top trending stories. if the hashtag all applies all swipes has appeared in your timeline it's because of tinder's newest update. tinder following through on creating a kinder platform for all identities. >> add the gender outside the binary and we added language in the app to inform users about how this feature is used and how they can add their gender to their profile. >> we have the option of saying i'm also trans, and put whatever word you would like. so you can taylor tinder to your specific need. >> so the ceo of tinder teaming up with high-profile members of
the trans community to shape the dating experience. before the update users were offered two options, male and female. now users can choose any term that describes their gender identity. photos from the past are meeting the scanner from the future. the new photo scan app from google makes it easy to tdigitie your old photos. you place your photo inside the border, four white dots appear, you move your phone over the white dots, once they turn blue, the app pulls together the final image. getting quite -- >> i do this quite often. you all get a bit of glare. >> it makes sense. the more ways we can advance that function or application makes sense. >> absolutely right. get your throwback play list
ready. new kids on the block announcing a summer tour. they will hit the road with boyz ii men and paula abdul. this mark's abdul's first tour in 25 years. there will be no shortage of fans waiting to see them perform live. i don't think i'll be on the list. i have not heard any of these artists. >> come on. boyz ii men? >> i love a good boy band. not heard of them. the tour kicks off may 12th in columbus, ohio and will hit more than 40 cities including boston. shy be going to one of those? >> you should. coming up on today's show, our must reads for the day. plus we head to break, check out the trading picture in europe. right now pointing to a negative close in europe. the ftse down 11 points.
time for the must reads. mine is in the "washington post." it's by kathleen parker. is steve bannon really as bad as all that. she asked whether we're allowed to wonder or question that point she poses. is it possible to allow white supremacists and women haters to traffic your website and still be considered less awful? parker asks people who have been known to steve bannon to describe him in a few words. the words came up gentleman,
strategist, always polite, brilliant, fighter, activist, articulate and as well at the end someone told her i don't trust him. it's an important question being posed. a lot of people don't know him personally. the president-elect has balanced those two top posts that he's appointed. mr. trump won, he's not representing a minority anymore, and you could argue that people who voted for him have as much reason to be upset becau. >> i think people will be watching closely to see how bannon acts or performs as chief strategist given some of the controversial remarks he's made in the past. my must read is from the financial times. it's a piece written by alexander stub, calling the new deal that must be forged between europe and the u.s. europe needs to listen to what donald trump has to say on the
cost of nato. this means european countries need to beef up military expenditure and continue to develop the eu security and defense capabilitiecapabilities. d dismantling nato or questioning the alliance needs to be addressed. you could see the rise of china and help the countries that perhaps washington pulls back on. >> i think the nato fact, that donald trump's criticism that it was founded for a period of the cold war and that doesn't exist anymore, and that other members like germany are not meeting the requirements of spending 2% of gdp. fair criticisms, but i'll not sure it grasps how important it is to some of the u.s. allies. that's something they're fear of in europe if he pulls back from
the nato alliance. we're approaching the top of the hour and that means the start of "squawk box." joe kernen joins us. >> don't take us for granted. that's all we're asking. pay your fair share. we'll be glad to police the entire world for you. >> the uk does match it. >> i'm not talking about -- nobody is closer than the uk. you know why said earlier, you have the front space in the queue for everything. the winston churchill -- that's going back up. that bust is going back up right where it was supposed to be. i don't want you to worry what do you think of john lithgow? he's like 6'4" -- >> he played him well. >> i do. >> talking about "the crown" on netfl netflix. he was outstanding. >> but to turn himself into winston churchill, that's like me turning myself into you, that's impossible. >> you've done it before. you've done impersonations of my vote very well. >> i haven't heard it.
>> twitter. >> any way -- >> the s&p getting close to an all-time high. that will be interesting. yesterday the market looked like it would be in some type of selling mode as it does this morning. but it's way too early to tell. the dow ended up, as you saw yesterday, with a decent gain. the nasdaq finally snapped back. we have sam zell, the -- i've been following this guy's year for -- i won't say for how long. it's older than a lot of our anchors. like 30 years. the grave dancer. when i was a stockbroker i used to buy some of the companies he was involved with for clients. he's amazing. very outspoken. says whatever is on his mind. i don't think he has to answer to anyone for anything. as a result, he will tell you what he thinks. am i right or am i right? >> yes. >> also today, michelle caruso-cabrera will be appearing on "squawk box."
i could mention senator bob corker, governor scott walker, senator mark warner, holeman jenkins, i could, i could mention those individuals, they will all be on the show as well talking about the transition, but mcc will be here. >> you could, you should, and you did. great stuff. we look forward to that on "squawk box" in about ten minutes time. coming up, the s&p 500 breaking a two-session losing streak. what comes up next? also tech taking part in the post-election rally. stay tuned, you're watching "worldwide exchange." what i love most
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...for 30 days febreze small spaces and air effects, two more ways... [inhale + exhale mnemonic] to breathe happy. welcome back. joining us now to talk about markets is bill stone, chief investment strategist at pnc management asset. good morning to you. >> good morning. >> what do you make of the markets over the past two days. seems to be losing steam on premarket trade, though the dow
hitting an all-time high, is that over the president-elect's proposed policies? >> i think we had the really big rally around election week. we saw some losing steam in some of the sectors that had done well. then some bounce backs in some other ones like tech that got hit hard post election. we have reset things a bit. so you're back to how are things looking? how are thing going play out? we got news yesterday with the retail sales. that helps with the economically sensitive consumer discretionary. >> every time the dollar has moved up we have started to get worried about what that means for earnings of companies, and then a negative correlation between dollar strength and equity market weakness.
now we hit a why not seen since last december. we are relaxed about it. what's the change? >> is interesting. i do think there is some -- some toll to be paid on the earnings. that's what we're looking at, we're in the midst of the fourth quarter. you would think even with the yuan deprecating, i think the focus is on maybe more future in terms of better earnings coming through. i say more inflation, but that's not a bad thing coming from very low inflation, because that can help the earnings picture. maybe, too, just the fact we are seeing a bit better economics growth. japan we saw earlier in the week this week. i'm not sure they can continue to grow at that pace.
we saw a bounce there in the fourth quarter so far in the u.s. that's going pretty well. financials are in the driver's seat since the election outcome last week. this talk of potentially tearing up dodd-frank. how important is this for banks going forward? >> from everything i've seen, working with some of our research people, it doesn't look likely that dodd-frank goes away because you need 60 votes to do that, but the bigger part is the yield curve continues to get steeper. that's where lenders make money. you likely see more m&a, those banks are involved in that certainly you would expect more fees on that side. >> bill, great stuff. thank you very much for joining us. >> thank you. >> billing stern of pnc asset
good morning, oil prices pulling back today following a huge rally. the reasons behind the move coming up. and an ipo snap. messaging app snapchat quietly preparing to go public. it looked like that, but then everything disappeared. the details straight ahead. and our news maker of the hour, former treasury secretary larry somers will join us in the studio, sam zell for two hours. it's november 16, "squawk box" starts right now.
♪ live from new york where business never sleeps, this is "squawk box." good morning. welcome to "squawk box" on cnbc, i'm andrew ross sorkin along with joe kernen and michelle caruso-cabrera. dow looks down, the same thing with the s&p 500 and the nasdaq. look at asia overnight. a bit of a mixed picture. the nikkei up in sort of a big way. up a little over 1%. nothing to sneeze at. european equities now, we'll show you what's going on there. a bit of red there. except in italy and spain. >> here are the big stories we're watching. let's start with oil. the international energy agency out with a new report. it expects global oil consumption to peak no sooner than 2040. some minister also meet