tv Worldwide Exchange CNBC November 17, 2016 5:00am-6:01am EST
good morning. the end of a winning streak. the dow suffers its first down day in seven. why carl icahn thinks the post-election rally may be overdone. janet yellen heads to capitol hill. the fed chair expected to be grilled on monetary policy and potential trump administration plans. and the president-elect looks like he'll fill his cabinet. reports and rumors are flying around this morning. it's thursday, november 17, 2016, "worldwide exchange" begins right now. ♪
good morning. warm welcome to "worldwide exchange" here on cnbc. i'm wilfred frost alongside susan lee who is here this morning. >> uptown funk, like that. >> it's guinness world records today, in celebration of that, we're throwing it back to songs that spent the most weeks at number one. that explains the song. i don't like this song. >> i don't like the song? >> it was overplayed. that's the other problem with songs at number one. there you go. global markets, it turns out the dow is fallible, it had a slight decline yesterday, 0.3%. similar slight declines for the s&p. the nasdaq was up a little. those declines were small it was a reversal of the trends we've
seen since trump's election when tech stocks did well and bank stocks did badly. they had their first down day in seven. fell 1.5%. while the headlines falls of the market it was a trump rally reversal. this morning we're flat in the premarket. the dow called higher by seven points. let's look at oil prices. they rallied strongly on tuesday. they suffered a bit yesterday. they are up again today, 45.7. but they were one of the main drivers for outperformance earlier in the week. >> across the bond, let's check in on european equities. we're early in the european session. like the u.s. markets, we've seen healthcare and bank shares pulling back which have been the drivers of the market rally we've seen post-trump. let's look at the dax, down by a third of a percent. the french cac, not going anywhere. ftse 100 seeing minimal gains. later on today we will get the minutes from the european
central banks october policy meeting. in asia, a tepid session. not a huge amount of direction. the focus was on the japanese market. the nikkei not ening with much movement. >> three decimal places. >> the story was about the boj and the short-term yields on the treasury notes there, the sovereign yields there, given that the boj had said they will buy unlimited short-term bonds. >> i think interesting they're stepping in to do that. this comes in the face of a weaker yen. previously when the yen has gone higher, they tried to inject more monetary stimulus to stop that from happening. it highlights the tick up in yields globally is being applauded state side but not elsewhere in the world. it highlights the different fragilities in the economies. >> different dynamics if japan. with the weaker yen. you still want short-term yields to be lower.
you want to reinvigorate in an environment that's been lower for 20 years. >> let's look at the broader markets. the broader dollar index high, not seen since 2003. that did not unwind yesterday in the way some equity markets had. today, pretty much we're seeing it reverse, but fractionally. the euro is up 0.3%. the yen is flat. the pound is up slightly. earlier kit jukes wrote i don't know how long the dollar euphoria can last without a correction. he thinks we are do a pullback. it's been a strong rise. highs not seen since 2003. treasuries did see the shorter end of the yield curve still continue to play catch up with the rest. but the longer end of the yield curve stopped its strong march higher. yield curves slipping today. ten-year note, 2.2%. earlier in the week, we hit
2.3%. yields marketed s markedly high. gold prices, looking slightly higher this morning. carl icahn warns the strong rally in stocks since trump's election might be overdone. speak at a conference yesterday, he said investors can expect trump to help fix washington and improve the state of the u.s. economy. he's been a strong trump supporter. he confirmed that he bet about 1 billion u.s. dollars on u.s. equities after leaving trump's victory party. it's been a busy day for weekly data and fed talk. weekly jobless claims will be out at 8:30. headline cpi forecast to rise. housing starts are due out at 8:30 a.m. followed by the november philly fed survey at
10:00. half a dozen fed officials are speaking throughout the day. the highlight will likely be fed chair janet yellen, testifying on capitol hill before the joint economic committee. that's at 10:00 eastern time. in earnings central, walmart, best buy, staples reporting results before the opening bell. we'll hear from gap and salesforce.com after the close. landon dowdy has three things to watch in that walmart report. good morning. >> good morning. the street is looking for walmart to post earnings of 96 cents a share on revenue of $118 by billion. here are three things to watch. sales in traffic. despite a sluggish retail environment for other department stores, analysts expect walmart to continue their upward trend for the ninth consecutive quarterly increase in same-store sales. the retailer forecasts sales to rise 1% to 1.5%. second, online. last month management said that e-commerce sales would accelerate to a level of 20% to 30% in the second half of the
year. investors will want to hear more details on the future of online shopping for wallmart.com following its purchase of jet.com. and the other thing to watch, investors are looking for walmart's input on holiday sentiment especially among the core low income consumers. shares are down a little over 2%. >> those numbers out at 8:00 a.m. eastern time. they'll break them live on "squawk box." fed speakers out in force this week. among them, patrick harker. speaking late yesterday, harker said he favored investing interest rates and said the central bank may have to hike more aggressively if donald trump's administration enacts fiscal stimulus. investors believe inflation could increase if the president-elect follows through with campaign promises like
cutting tack cut ing taxes. shinzo abe will meet donald trump later today. abe said he wants to build a relationship of trust. and also this is a way to say -- make amends for snubbing donald trump earlier this year, since when shinzo abe came in september only met with democratic nominee hillary clinton at the time, which some said was a not so subtle endorsement. since japan is probably one of the most powerful allies in asia pacific, he needs to make amends. >> also interesting this could be the first foreign leader that president-elect trump meets, given how many criticism trump got during the campaign for his asia position. >> abe is holding out hope that maybe he can change donald
trump's mind on tpp. let's be realistic, he's been realistic as well, maybe some say he will push for a bilateral free trade agreement between the u.s. and japan. >> absolutely right. jpmorgan will reportedly pay more than $250 million to settle a u.s. government probe into its hiring practices in china. the allegations are that the bank hired the children of chinese decisionmakers to win business in china. $200 million will be paid to the s.e.c. and justice department, 50 million paid to the fed. no individual prosecution is expected. it's the sort of settlement that won't upset the company too much. yesterday also news -- rumors that jamie dimon, the ceo, could be taking the role as treasury secretary, but sources tell me that's not going to happen. >> no thank you. let's check in on stocks to watch today. cisco's first quarter profits falling 4%, largely on
restructuring charges related back to job cuts that were announced in august. revenue was down more than 2%. the company also warning that revenue will decline again this quarter as challenges continue to mount. ceo chuck robbins on the conference call. >> we delivered a strong q1 in an environment that continues to be challenging. we executed very well in the quarter with revenue growing 1%, non-gaap earnings per share growing 3%. this quarter total product orders declined 2%, largely due to service provider orders declining 12% which was worse than our expectations heading into the quarter. >> robbins will be joining "squawk on the street" at 9:00 eastern. hain says it has found no evidence of wrong doing in relation to its financial reporting this is after conducting a review of its own accounting. the company's audit committee
examined whether revenue from certain distributors into the u.s. were recorded in the proper period. first solar is cutting 1600 jobs or more than a quarter of the its work force. the company expects to post a loss for the year and is forecasting 2017 sales will fall well below stocke estimate. l brand giving a down beat outlook for the fourth quarter which includes the holiday shopping season. netapps second quarter profit narrowed. the turnaround efforts continuing to pay off. the data storage provider is raising its outlook for the current quarter. shares up 11%. amgen reporting positive result force its migraine drugs. patients experienced three fewer days of headaches per month. amgen is trying to treat
episodic and chronic migraines. stock is flat today. still to come, global stocks mixed this morning as the post u.s. election rally takes a pause. that's coming up next. stay tuned, you're watching "worldwide exchange." what's going on here? i'm val, the orange money retirement squirrel from voya. we're putting away acorns. you know, to show the importance of saving for the future. so you're sort of like a spokes person? more of a spokes metaphor. get organized at voya.com.
yesterday the dow fell for the first time in eight sessions. it is fallible in the trump era, declines were small. the s&p down slightly. the nasdaq eking out a slight gain. even though that headline correction was minimal, we saw sector moves. banks were down 1.5%. in the premarket today, pretty much flat. if we look at currencies, we have seen a bit of a reversal today. yesterday the dollar hit a high against a broader index of currencies not seen since 2003. today just pulling back, by slightly. about 0.3% of strength for the euro against the dollar today. let's wrap things up with oil prices. they're up, 45.7, they were down a bit earlier in the session -- in yesterday's trade. earlier in the week about a 5% boost on tuesday's trade. 45.7 is where wti sits at the
moment. >> let's go to london and a plan who says mr. market is unruffled by mr. trump. paras anan is with us. what do you mean by that? >> i guess what i was really meaning was that when you look at the moves we have seen in the market and of course they've been probably in the context of equities more positive than people expected, actually what they are, they're in the kind of range of what we would normally see. whilst we look upon this as a seismic event from a political perspective, the market has remained largely undisturbed. >> there's been a big difference in the reaction to the market compared to brexit. what is the most stark difference in your eyes? >> so, i think there's a couple of points to make. the first is that i think brexit was an interesting reminder to investors that sometimes acting in the heat of the moment was
not the right thing to do. a lot of decisions that people made in the aftermath of brexit they came to regret much the second thing that was the difference, was whilst the impact in equity markets was limited, in the bond markets they were pronounced differences in terms of the reaction with the long end of the bond yield rising post trump's election. whereas the exact opposite happened after brexit. >> what about banks and healthcare shares? those are two sectors that have rallied since the trump election but have pulled back because people may be thinking there's so much euphoria being priced i in. >> what we are looking at are two sectors that have been weak, not just recent weeks but the last year or 18 months. so i think that the -- if
healthcare in particular, the idea of a republican becoming president was obviously a form of relief there. some of those shares have not traded in the most expensive end of the long-term range. i think for the banks, it's really about that outlook for inflation, that outlook for policy rates. we know this ultra low rate environment has been negative for the margins of banks. >> update us on the political sentiment across europe. is there renewed worries from the establishment following trump's surprise victory, particularly with various elections and referendums coming up? >> i think, yes, there has to be renewed worry from the establishment. while on the one hand we saw the status quo maintain. in spain, we have the italian referendum coming up, french elections next year, there's a real consequence of the trump
election. having said that, if you bring it back to a market and investor's perspective, if we go back to the summer, most investors had political risk at the number one thing that they worried about in the context of markets. when we think of brexit and the election of donald trump, you could say the most unexpected outcomes happened. yet markets have been relatively sort of sanguine. whilst there may be more uncertainty in terms of politics on the horizon, maybe the reaction from markets may not be that dramatic. >> in terms of big events, perhaps the biggest one, old tr trafford, lunch time on saturday? >> yes, we're looking for one of those unexpected outcomes, where the favorites don't triumph. >> i hope you're wrong. manchester united i hope will be defeated comprehensively by
arsenal. i'm sure we'll both be watching our teams. >> you bleed arsenal, don't you. >> i do indeed. it's going well for us for once this system. and manchester united suffering, which is excellent. it may be mid-december before trump announces his cabinet choices. plenty of names rumored to be in the running. plenty more ahead.
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welcome back to "worldwide exchange." political news, president obama is in berlin today as part of his final overseas trip as president. he will meet with chancellor angela merkel who obama described as his closest international partner. speaking of mr. trump, the transition to the white house continues. the president-elect continuing to assemble his team. tracie potts joins us now with the latest. >> reporter: good morning. so, mr. trump is supposed to meet with japan's prime minister in new york today. his focus has been getting this cabinet in place. he's also expected today to have a meeting with south carolina's governor, she may be in the running. new names are emerging as possible choices for president-elect's trump cabinet.
mike flynn as national security adviser, senator ted cruz as attorney general. >> i'm eager to help any way i can. >> reporter: south carolina governor nikki haley is being courted as secretary of state even though she opposed trump. >> we have an immense amount of talent out there. >> reporter: including -- >> we discussed the transition. >> reporter: former mayor rudy giuliani and john bolton, but there may be enough democrats and republicans to block both. >> i don't think you want your chief diplomat to be an advocate for war. >> reporter: mike pence is in charge of the transition, but today he's back in washington meeting with leaders from both parties who could choose the next supreme court justice, even with a republican majority confirmation may not be easy. >> to say the least i think they have another thing -- they better think twice about that. >> reporter: hillary clinton
made her first public appearance since the election urging democrats not to give up. >> please, don't lose heart. don't give up on the values we share. >> reporter: back here on capitol hill, a top democrat on the oversight committee wants to know everyone whose security clearance have been requested for from either president-elect trump or from his team. the president-elect has said despite widespread reports that he's not requesting clearance for his adult children and not requesting clearance for his son-in-law. >> i knows there a balancing act in terms of picking people, so you can sort of placate all breasts across the cabinet. senator ted cruz, there were such fierce battles between he and trump during the campaign trail, and he famously underwhelmed mr. trump when he spoke at the convention. that would be a huge surprise if he got a significant position, wouldn't it? >> would be interesting. when you listen to what cruz is saying now, he says they have a lot of things in common in terms
of what they want to get accomplished. the position he would be looking at would be attorney general, so dealing with some of those thorny issues that have become legal issues. it would be a big surprise. he certainly would not be calling him lying ted anymore if he's in charge of the justice department. >> thank you very much, tracie potts live in washington. coming up, oil prices on a wild ride following the u.s. elections and ahead of this month's opec meeting. we'll talk to an energy analyst about what to expect from here.
good morning. janet yellen heads to capitol hill. the fed chair preparing for a grilling. earnings central. the consumer in focus today as walmart rolls out quarterly results. and a record breaking purchase at christy's last night. we'll bring you the details. it's november 17, 2016, you're watching "worldwide exchange" on cnbc. good morning. a warm welcome to "worldwide exchange." i'm wilfred frost alongside susan lee who is in for sarah again. good morning. >> don't you think the morning starts better with rihanna. >> better than the one at the top -- >> don't. bruno mars. >> it wasn't bruno mars. >> it was bruno mars and mark
bronson. >> is throwback thursday, and guinness world records day and because of that we are spending time with songs that spent the most amount of weeks at number one. markets are pretty much flat right now. let's look at them right now. fractionally higher for the bough, 5 points, but essentially flat in the premarket. yesterday the dow snapped its seven-day winning streak and had the first decline since the election victory for donald trump. it was only a slight decline. 0.3%. the s&p was down slightly. nasdaq was slightly positive. sector rotation in terms of under winding some of the big gainers. financials were down yesterday, a bit of profit taking following the strong surge they had. a look at european trade. pretty much flat at the moment. mixed as you can see.
slight declines for france. slight gains for the ftse 100, italy and germany down. if we look at asian trade, the main news today coming out of japan where the japanese government has confirmed it will start buying government bonds again at the short end of the curve. yes, yields have risen there, they want to offset that, but it's come at a time when the yen has been weak already. not a double reason for buying bonds, but highlights different sentiment in the marketplace. here, rising yields seen as a good thing and being applauded. not being seen quite so positively. either way, not much movement in asian stock markets. >> called yield curve control. key short term yields are low. long-term yields, you want them higher because of long-time payouts. oil prices paring a bit of
the losses. wti crude up by 0.25%. brent crude, gains of 0.4. and a build this week which brought crude pricing down. and gas prices, nat gas, 1.32. higher by three quarters of 1%. the dollar play, hovering close to 13-year highs. looks like it's playing out in the oil markets as well. gold pricing, if we can check this on the gold boards, how they're trading this week. gains of 1.230 an ounce. we saw yields pause from r highs. we saw 2.3% on the ten-year treasury note, now down to 2.2%.
we saw that continue to play yield catch up rising to the highest level since january yesterday. the dollar boards, we're seeing a bit of a bounce back in terms of seeing a bit of dollar weakness today. yesterday the dollar index hit a why not seen since 2003. today, as you can see, the euro gaining almost a half percent. a bit of profit taking. a busy day for economic data and fed speak. weekly jobless claims out at 8:30 eastern, along with the consumer price index. headline cpi set to rise 0.4%. housing starts at 8:30. the philly fed if the at 10:00. a dozen fed officials speaking today. the highlight is janet yellen speaking on capitol hill at 10:00 eastern time. in earnings, walmart, best buy and staples before the opening bell. hearing from gap, salesforce.com after the close. billionaire activist
investor carl icahn warns the strong rally in stocks since trump's election may be overdone. he says trump can fix the state of the economy. he has been a trump supporter. he confirmed he bet about $1 billion on u.s. equities after leaving trump's vekictory party the bank of japan buying an unlimited number of japanese bonds with a one-year and five-year time frame. this was the first such move since the introduction of the new policy framework in september, the boj said no financial firms offered to sell government bonds at fixed rates today. the move an effort by japan's central bank to temper rising yields and came sooner than
markets expected. japanese government bonds moved sharply on expectations of higher inflation under u.s. president-elect donald trump. >> no one was offering to sell since they were paying market pricing. shinzo abe will meet president-elect donald trump later on. he will be the first foreign leader to do so. abe said he wants to build a relationship of trust. it's a relationship of economics as well as security given that japan is the largest and closest ally the u.s. has in asia pacific. trade is high on the agenda since japan was the main part of the pivot to asia from obama, and the tpp trade pack which is in danger now. abe thinks he has a chance to convince and change donald trump's mind. >> optimistic. >> not a lot of people agree with him. by whew not start building for a fee afraid agreement and a bilateral trade agreement
between the u.s. and japan, and also security, when donald trump talked about pulling forces out of japan, a huge presence in okinawa and other bases across japan. abe says let's make this a closer partnership going forward. don't do that. donald trump may be bringing a bigger pacific fleet presence to japan in the future. >> that bilateral possibility is more realist than the highly optimistic attempt to keep tpp on the table. investors watching oil prices closely ahead of the oil meeting. let's discuss that more. joining us is jason gammell from jeffries. thanks for joining us. is this the next big event risk in the marketplace, the opec meeting coming up? >> i think it's certainly a big one. right now what we're seeing in global supply is that we're moving back into an oversupply situation. so, the oil market does need opec to take action if we're going to see price support. there are down side risk in
prices if opec comes up a complete failure on the 30th. >> so often we heard of promises of this, whether it comes through or not. if you look at the fundamentals, it doesn't seem like countries like saudi arabia have insenttiinsencentive to stop pumping oil when the crown prince knows there's a finite appoint of money they can make there, and the sooner they make it the betterments. >> i think it's a fair point that the reserve life stretches for decades, you try to accelerate as much of that forward as possible. but they're in a situation where they're drawing down foreign currency reserves significantly. getting a higher oil price to get them a higher revenue stream is something they're probably reconsidering now. >> jason, the market says if opec doesn't get together and have some sort of production control, we're going back down possibly below $40 a barrel. >> i think there's certainly risk of that. part of the reason for that is that opec production is up by a
million barrels a day since the september time frame. that's libya and nigeria coming back into the market. we've went from a situation of being balanced to now being backed into significant and oversupply. oversupply commodity market la a difficult time with price discovery. >> you saw that with the inventory build this week, which depressed oil prices. that equation, where is it going? >> i think that's right. the u.s. has the most readily availability inventory situation in the world. so, when the markets are oversupplied, you see west african barrels find their way to the gulf coast to be stored. >> you focussed en what the dollar is doing in terms of its effect on oil prices or is it much more an opec factor? >> i think opec is the bigger factor now. certainly through most of the last five years you have seen a strong correlation, negative correlation between the dollar and oil price. we have not seen that
materialize over the last couple weeks with the strength in the dollar. it has been more of a fundamental focus. but that comes into play and is another head wind for oil prices. >> in terms of donald trump's expected policy on the energy sector, is that changing your perspective of where oil will go over the next five years or so? >> i suppose what we're expecting is more accommodation of the u.s. enp industry. epa rules maybe being relaxed a bit. fracking something that you can consider more desirable. if anything, those policies probably have a negative effect on oil prices because they encourage more supply coming out of the united states. >> jason, thank you very much for joining us. jason gammell. >> thank you. jpmorgan will reportedly pay more than $250 million to settle a u.s. government probe into its hiring practices in china the allegations are that the bank hired the children of chinese decisionmakers to win business
in china. $200 million will be paid to the s.e.c. and the justice.and more than $50 million will be paid to the fed. no individual prosecution is expected. >> cisco's fourth quarter profit falling 4%. revenue down more than 2%. the company also warning revenue will decline again this quarter. >> we delivered a strong q1 in an environment that continues to be challenging. we executed very well in the quarter with revenue growing 1%, non-gaap earnings per share growing 3%. this quarter total product orders declined 2%, largely due to service provider orders declining 12% which was worse than our expectations heading into the quarter. >> robbins will be joining "squawk on the street" at 9:00 eastern. time for our top trending stories. an art collector sending a boost of confidence through the market. a claude monet painting selling for $81.4 million. the pa
there was a fierce bidding war among collectors. it was expected to sell around $45 million. >> with donald trump's promise to bring down the tax bracket for the top 1% they have more to spend on pricey things like monets. top brady is making fun of his deflategate scandal in a foot locker commercial. the ad starts with two shoppers questioning how the thanksgiving sale could be a great year year after year. >> how is it possible it keeps getting better after all of these years. >> makes you wonder what foot locker is up to. >> that's an unfortunate mindset you have there. why can't things just be great? >> the patriots quarterback served a four-game suspension earlier this season, and an nfl
investigation concluded that the team intentionally underinflated footballs used in the 2015 afc championship game, which is still disputed and controversial, since cold weather softens footballs. >> good to see him taking a lighthearted approach to it. today's must reads coming up. first, as we head to break, check out the dollar. we're still hovering close to the 13-year highs. stay tuned. you're watching "worldwide exchange."
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welcome back to today's must read stories. in the financial times, i've gone for an article "remake the union to heal europe's rift." written by nicolas sarkozy, a candidate at the moment to try to win the center right party's nomination. he's running second in the polls at the moment behind alan juppe. he writes britain's doubts about the european project cannot be explained away as a factor. other european nations could have voted the same way given the chance simply because the rift between europe and its citizen is wider than ever before. he goes on to say europe must embrace reform because its future and survival depend on it. because reform is as urgent as it is vital. the reason i picked this out, it's interesting to hear from a high profile figure who possibly
will be on the ticket next year, but either way represents views of the central right party coming out with a view of one of acceptances a opposed to defiance. it's a refreshing opinion from a british point of view, but also an important one. because these elections next year across europe will define the main power stays for europe and who will take part in the brachial plex brexit negotiations. >> i think there's a big move to the left, marine le pen seen as a big contender for the french elections later on this year. >> she is. she's far right as opposed to the left. there's anti-european sentiment for people like her. but sarkozy also admitting the ned for reform. my pick is on day one trump should find two measures on his
desk. george will writes when trump reaches his desk on january 21st there will be two congressional measures which are emblematic of how quickly elections can have consequences. one should be the regulations from the executive in need of scrutiny act. the other should be legislation mandating construction of the keystone xl pipeline. transcanada has seen a rally since trump, unlike barack obama who street today and declined the keystone pipeline twice, trump is more open to but wants the u.s. to get profits. >> it will be interesting to see if that gets approved along with all sorts of energy matters. still to come, the bulls will look to battle back after the dow snapped its winning streaks. more thoughts on the market when bob doll joins us next.
welcome back to "worldwide exchange." approaching the top of the hour. the team is getting ready for "squawk box." joe kernen has a look at what's coming up. good morning, joe. >> we'll see you in 45 minutes. >> that's optimistic. i'll do my best. >> don't rush. don't rush. we'll be fine. we'll get along all right. we look forward to having you here, but no reason to get hurt or hurt anybody else getting down here. the dow finally broke that streak, but suddenly the nasdaq looks good. nasdaq diverged from the dow yesterday. if you go back and look at the last two weeks or so on the nasdaq, you see a good rise as well. all the markets now sort of in sync, though we had a pullback in the s&p and dow yesterday. the s&p still within striking distance of an all-time high. we have neel kashkari on who was
making recent comments. steve liesman will bring us that. now that the election is over, we can go back to obsessing about that quarter point increase. we may end up missing the election. that was an outcome that was something that definitely was going to happen on a definite date, we were going to get a resolution. now we're back to this -- the death by 1,000 cuts watching every fed head give his opinion on a daily basis about whether we ever raise by a quarter point. maybe some day we'll have such a good economy that we only talk about the fed once every three months. for an hour we'll have the ceo of dick's sporting goods on. when i was a kid, we had the local sporting goods vendors. these guys came in. the name used to be sports authority. i think they continue to take market share from everybody.
just a great success story. really cool place. don't know if you have been in there. >> i have been into one. >> they have got -- that's the thing about soccer. so, you couldn't have a dick's sporting goods, if it was just soccer. balls, the same stupid ball everywhere. >> but you can't just have a store with nfl, baseball -- >> at least you have pads, bats, balls. soccer, can you imagine a super store for soccer? be like everywhere there would be that ball? just that -- kind of -- kind of sums up -- >> there would also be clothing, merchandise, gloves for the goalkeepers, which you think should be dished out to every single player. >> there may be padding for when they fall down and fake, how they always -- oh! the next play, there they are running as fast as ever. >> that is something i agree with you. it is a shame. we have to wrap this up.
we can continue this discussion in that hour on "squawk box." >> or not. >> okay. fine. we won't then. >> okay. >> either way i look forward to joining us for "squawk box" which kicks off in about eight minutes time. >> i look forward to you and joe talking about spandex. >> are we going to do that today? >> yeah. all hour long. for the final bit of "worldwide exchange," let's get back to markets. joining us is bob doll. good morning to you. thank you very much for joining us. yesterday the dow snapped its seven days in a row of gains, was it about time we saw a pullback post this trump rally? >> for sure. we powered higher, there's still a lot of uncertainties. did we elect donald trump the tax cutter and pro growth president or elect donald trump the protectionist with some tariffs which is a tax increase? i think we'll get more of the former than latter. we really don't know. the power of the rally has been
amazing. >> even if we get the more positive, the rosy for markets version of donald trump, at what point does the increase in the deficit, the increase in the national debt become something we focus on? that should have relatively negative effects on things like bonds and the dollar. yet at the moment clearly the dollar is surging. >> obviously the stock market will take its queue from the bond market on that issue. the debt to gdp ratio is still falling. that is federal debt is growing more slowly than nominal gdp. that won't last forever, when it does, we move it from the back burner to the front burner as an issue. you're right to bring it up. fiscal '16, september was the first increase in the federal budget deficit by $150 billion in four years. it's going higher. >> central bank policy has been the catalyst for stocks over the
past 12 months. janet yellen testifying later on today. you are expecting anything? >> i think she'll prepare the way for what's -- let's hope we get an increase in december. we've been waiting. as joe said, it's 25 to 50 basis points, still very, very low. what about zero percent in japan. they're defending the yield curve. surprising the market by talking about unlimited purchases of short-term bonds. >> i think, melissa, japan has tried every which way for reflation, only had mixed success at best. they're trying something new. japan's problems, one of the big ones is demographics. their population is shrinking. how do you grow your economy when fewer people come to the
mall? it's a big problem. if we talk about the u.s. equity markets and sector performances, banks are one of the fallers yesterday. have they overrun or is there a perfect positive storm assembling under trump for the banks that continue to push higher? >> you bring up a great point. as good as the market has been, the real action is the unbelievable differences in sector performance, banks being one of the top of the list. banks are breathing a sigh of relief. we won't have a breakup of the banks as might have been under the other administration or attempts to do that. mr. trump will postpone, to the extent he can, regulation that is showing up. he may roll back some things. some parts of dodd-frank. banks are standing up and cheering. the second reason they moved up is it looks like we have a shot, not a given, but a shot at more growth. >> yeah. >> and more inflation. more nominal gdp.
that's beautiful thing for the banks, the shape of the yelled curve. did they get overdone on the upside, absolutely. they may fall back more. i think you have to let banks generally -- >> bob, we have to leave it there. thank you very much. you get used to sweaty odors in your car, you think it smells fine but your passengers smell this... eliminate odors you've gone noseblind to for up to 30 days with the febreze car vent clip break out the febreze, and [inhale/exhale mnemonic] breathe happy.
good morning. a pause, maybe not the end, but a pause in the winning streak. the dow suffering its first down day in seven. though the nasdaq traded higher. why carl icahn thinks the post-election rally may be overblown. he will be right about the stock market some day. he is. i'm sure. some day. jellinekge janet yellen heads to capitol hill. she will be grilled on monetary policy and potential trump administration plans. and breaking up the big
banks? neel kashkari rolling out a blueprint to end too big to fail, he joins us on the "squak" set. it's thursday, november 17, 2016, "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 michelle caruso-cabrera along with joe kernen. becky and andrew are off today. let's give you a first look at u.s. equity futures. this suggests the dow would open higher by 15 points. the s&p by a little more than one and the nasdaq a little more than seven. overnight in asia, mixed markets there. the nikkei flat. hang seng lower, flat when you look at percentage terms. >> you know what would be