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tv   Worldwide Exchange  CNBC  March 9, 2017 5:00am-6:01am EST

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good morning. it's decision day for the ecb. we'll tell you what to watch when mario draghi starts to speak. oil prices bouncing bang back a bit after plunging more than 5%. and the latest healthcare plan moves one step closer. "worldwide exchange" begins right now. amazing throwback thursday
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song. >> what is the theme that led to this song? i want to find out. >> my favorite song ever? >> we'll find out very soon. >> welcome to "worldwide exchange" on cnbc. i'm sara eisenment. sara eisen. >> i'm wilfred frost. we're throwing it back to barbie doll, which made its debut on this day. if we're throwing it back, are there more barbie songs? >> maybe we'll play this one into every break. >> or other cheesy ones. i like ken's voice in this song. >> yes. i was about to try. it would have been bad. let's check in -- no. stop. >> not bad. here are the futures after another selloff on wall street. third day in a row yesterday. >> the nasdaq eked out a fractional gain. >> absolutely. futures looking up this morning. dow futures are up about 8 points. s&p is up 2.
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nasdaq up 2 as well. let's go straight to oil. that's what really spoiled the ma party yesterday. a big plunge in oil. >> fell bigley. >> more than 5% to a level back in december. lowest level of the year, about $50 a barrel for wti. you can see getting a bounce of 0.3. brent went down to the lowest since november. at 53.30. up about 0.3%. we got that inventory number from the u.s. government yesterday. fresh high, building over the weeks, and that's really what triggered the decline in oil. >> oil off 5% or so. it meant energy was the worst performing sector down 2.5%. it was a broad selloff again, 7 out of 11 sectors negative. definitely energy spoiled the party. >> ten-year treasury note yield continues to climb. now nine days in a row here on the ten-year, firmly above the 2.50 level. david tepper is short bonds,
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that's a winning trade right now. see what happens with the jobs report tomorrow and the federal reserve as -- >> do you know how to spell hiney? >> i apparently did it wrong. >> i learned it was heiney. >> i think -- >> there we go. >> he was very short on bonds, long on u.s. economic growth. let's check in on what the data is suggesting around the world. china's producer price index ro rose 7.8 last month. the fastest pace since september. in terms of chinese cpi, which is the important piece of data, that rose 0.8% year on year, it was short of consensus expectations which was expecting a 1.6% forecast and it is down from the 2.8% in january. so, cpi disappointed it was up only just shy of 1% year-on-year.
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as you can see, markets in asia having profit taking. hong kong and china down. japan up slightly. let's look to europe. ecb rate decision due around 7:45 eastern. the central bank is not expected to move on rates. president mario draghi will hold a news conference at 8:30 eastern time. european markets basically flat yesterday, down today by a quarter percent in germany. ftse 100 down a half percent. the important thing to note with this ecb meeting, once again we're not expecting action, but in terms of the press conference, mario draghi does have to respond to the stronger data. we've had it for a more prolonged period and inflation which is his core mandate that has been higher than target. he has to respond as to where he will go moving forward. no action expected this time. but he has to address it. >> you wonder about the bias. he has had a dovish bias.
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the other factor that is important is we're getting a divergence in monetary policies between the u.s. and the rest of the world. >> big time. >> europe is front and center because of that euro/dollar exchange rate which is so important. the euro has been weak, not as weak as one might think considering we are heading into another rate hike next week. if the fed does go, you'll hear talk maybe going more than three times this year. maybe going four times this year. depends on how the data heats up and what opportunities that lends for traders. they also have political risks they have to deal with. mario draghi is careful not to talk about that, but that's a market risk around the world. >> i think political risk is priced in also monetary policy outlook difference is probably priced in as well. clearly now rate hike expectations on the u.s. side are very, very high. i would say probably at the margin more people have expected loose policy in europe to last longer than maybe now the inflation data suggests. i don't think europe wants to
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tighten, but if inflation picks up, they might have to. it's one of those do we buy the rumor or sell the fact. >> they still have work to do. employment is not their mandate. they're above 9% employment across the euro area. not as much healing as we've seen in the u.s. >> let's look at the dollar board. it comes into that. the other reason to bring up that difference in policy, as we look at dollar board, not just on monetary policy but following the uk budget yesterday, the big difference in terms of fiscal policy in the uk, where there was expansionary policy. the u.s. will see that and see growth picking up. that's not in the forecast for the uk. that's why the pound continues to be in pressure. slipped from above 1.24 to below 1.22. >> i would point out the dollar y dollar/yen, the yen has been weak. that follows treasury yields
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higher and very strong adp jobs data yesterday. 293,000 jobs created in the private sector, the most in years and 100,000 more than the estimates called for. so that better confidence post-election is trickling through. >> a tweet from the president, making america great again, look at the jobs numbers. taking credit immediately. >> we are in his presidency, he can take credit for the jobs gains. gold prices, 1,204. hurt by the renewed strength in the dollar. >> seven sessions in a row of declines for gold. you can see the way it's come off that big run it had earlier in the year. this could be the eighth straight session of declines. >> moving on, happy birthday to the market -- bull market. today marks eight years since the march 9, 2009 low. many know it as the haines
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bottom after mark haines said on march 10th that he thought the market hit its low. it's good to look at that and remain ourselves of the extra or extraordinary run the market has had. >> unbelievable when you talk about this renewed strength and renewed life that it's gotten since the election. up more than 10%. >> absolutely. >> we have to remind ourselves of that. you know, growth might be picking up, but that set of run has come from monetary policy. that's about to turn direction. >> monetary to fiscal. to today's agenda. a pair of economic reports due out before the opening bell. thursday means weekly jobless claims, and import prices released at 8:30 a.m. eastern. staples reporting before the bell. after the close, results from ulta salon, super hot stock, and
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el pollo loco. consumers want cosmetics. especially at the lower end price point that elf does well. shares of akzo nobel are soaring in europe on pace for their best day in eight years. this after the dutch paintmaker rejected a $22 billion takeover from u.s. rival ppg. the bid represents a 29% premium to akzo nobel's closing price. akzo believes the offer undervalues the company and is considering spinning off its specialty chemicals business. ppg up a percent itself as well. other deal news to talk about, shell is divesting most of its canadian oil sands assets for 7$7.3 billion. it's a complex set of deals. the oil major will sell a portion of its investment to canadian natural.
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shell is also teaming up with canadian natural to buy marathon oil canada for 1$1.2 billion. that's a subsidiary of marathon oil. you can see some of the stock moving a bit. >> shell is also down because of oil prices declining yesterday. system of which happened in the afternoon. didn't factor into europe's energy stocks yesterday. breaking political news, house republicans have their first victory in the quest to your honor turn obamacare. in the last hour a measure was passed repealing tax penalties for those who don't buy insurance. it ends income based subsidies and replaces them with tax credits. late yesterday president trump met with two house democrats and six other groups that opposed the gop legislation who say he was enthusiastic to lower the cost of prescription drugs. elijah cummings and peter welch telling reporters that the president was enthusiastic about the plan to lower the cost of prescription drugs.
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>> we presented a proposal to the president which would allow for the federal government to negotiate drug prices, which we thought was very important, because drug prices are going up higher and higher. and more and more people are saying that they cannot afford the price of their prescription drugs. >> of course all eyes will continue to be on whether this deal can be passed. >> we know the democrats want it, they want it negotiated by medicare. something that republicans have resisted for a long time. we also know that president trump wants to tackle this issue. have not gotten specific details on how it will happen. former utah governor jon huntsman accepted president trump's offer to be the next ambassador to russia. this according to nbc news. he needs to be confirmed by the senate. this would mark his third
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ambassadorship. he was am bass bassador to sing under george h.w. bush, he was ambassador to china. he tried his hands at presidential runs. >> 2012 and failed. >> this because of the russia news and speculation, this will be an important job. >> hawaii has become the first state to file a lawsuit against president trump's revised travel ban. a hearing has been set for march 15th, the day before the order is set to go into effect. cnbc catching up with hawaii's governor late last night. >> the part of the ban that we're most concerned about is that they say they can extend it for a longer period of time, that they will be looking at other countries and looking at other criteria to prevent people from moving. that's the part that we believe can damage our economy. >> outstanding gubernatorial outfit there.
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>> with yas he wearing a lei? >> i have to go. >> hawaii's lawsuit says the president's order will harm the state's muslim population, tourism and foreign students. >> i mentioned elf beauty with the good results. shares up 14% after hours. coming up, the top corporate stories, plus a live report from europe as we await that decision from the ecb in a news conference from mario draghi. ahead of all of that, the euro is a bit firmer against the dollar this morning. though it has been in a pronounced down trend over the last few weeks. you're watching "worldwide exchange" on cnbc.
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welcome back to "worldwide exchange." yesterday the nasdaq eked out a fractional gain, but we did see declines for the s&p about a quarter percent and for the dow about a third of a percent. three days in a row of declines for both indices. it was a broad decline, 7 out of 11 sectors were lower. but, in fact, that hides the truth, which was that it was oil prices and the energy sector that weighed on the index. today, as you can see, basically plat again. just below it, right across the screen, less than 0.10% for each index. oil prices were the big talk yesterday. wti off more than 5%. 5.3%. off again today. it was bouncing back an hour or
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two ago, so we've slipped again. now below 50 bucks, 49.6 for wti. that continues to be a key focal point for markets. >> steepest fall in over a year for oil prices. today's big market story will be the european central bank, which is meeting in frankfurt. rate decision, 7:45 a.m. eastern followed by mario draghi's news conference, 45 minutes later. carolin roth joins us with what to watch. no change expected. but what do you expect from the tone of mr. draghi? >> good morning to you. no change expected when it comes to monetary policy, but when it comes to the tone, mario draghi will have to walk very, very fine tightrope between the dovish and hawkish expectations. when it comes to growth numbers, growth in europe has been strong. sentiment is the highest in six years, unemployment is falling to eight. and inflation has been picking up. when it comes to headline inflation, it's at the 2% level,
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even though core inflation is at 0.9%. they have to acknowledge that sentiment, and the rest of the economic picture is looking brighter. the euro/dollar ahead of that meeting, higher to the tune of 0.2%. but we are expecting dollar strength to come back ahead of the jobs number tomorrow. again, monetary policy expected to remain unchanged. and the ecb will likely stay on the sidelines when it comes to monetary policy for the rest of the year. why? because of the slew of european elections and it can't afford to expect any uncertainty ahead of those. back over to you. >> are there contingency plans if we get a surprise from the french election? >> i'm sure there will be contingency plans. surely mario draghi will be pressed about that. the dutch elections which will be happening next week at the press conference later today. but in the past he's been fairly calm and fairly muted when it comes to any sort of political risk. i don't think he will surprise
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us with any details on those contingency risks. we know the ecb will be on the sidelines. there is the chance that if we see marine le pen winning the french elections that they will ramp up the bond buying once again. that goes down to 60 billion euros a month starting from april. >> carolin, thuchl fank you ver for that. want to come back to oil prices. they really moved in the last five or ten minutes as we were looking at them. there is the intraday chart of yesterday and today. you have that big 5% decline yesterday. mostly coming at lunch time. then that 1.5% decline that we've seen now on today's move, 1.4% happening in the last 15 minutes or so. dipping back below $50 a barre. we were fractionally green. now down 1.5%. below $50 a barrel for the first time since december 15th.
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that's a big deal. there's a big energy conference we've been following on cnbc, ceraweek in houston. there was such a better and optimistic tone from some producers and ministers. last year at this time oil prices were lower. they're creeping back up into the 50s. here we go down again on this u.s. supply picture. >> brian sullivan is there for us at that conference all week. he'll be a key person to listen to throughout the rest of this day. as you said that ceraweek, it almost sounds like sara week. there should be a week. what would we celebrate? consumer goods? love of whiskey? gambling now? that's one of your favorite things. >> stocks to watch today. i like that. time inc's -- >> you were meant to say there would be a wilfred week. >> right. >> you didn't still, even when pressed. >> a leading suitor dropping out of the bidding process.
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shares of elf beauty, i mentioned this a few times. earnings and revenues for this cosmetics company topped estimates and upbeat guidance was offered. the stock is soaring. this is one that ipo'd last year. it's eyes, lip, face. not ears. you don't put makeup on your ears. eyes, lip, face. >> some do. >> they really hit -- they struck a chord with millennials. they have lower than average price. the border adjustment tax is key for this company. a lot of their product is made in asia. >> mine would have to be ncf. nose, cheeks, forehead. that's where they say i get shine. >> yes. your lips can never be too red. >> exactly. the house weighs and means committee taking the first step towards overturning obamacare in a marathon 18-hour session. headlines next.
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what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley the markets change... at t. rowe price... our disciplined approach remains. global markets may be uncertain... but you can feel confident in our investment experience around the world. call us or your advisor... t. rowe price. invest with confidence. welcome back. the republicans plan to overhaul obama care, taking center stage with that in washington. let's get an update from edward laurence. >> good morning. the house weighs and means committee about 4:15 this morning actually passed the first hurdle here for the american healthcare act. they decided to go forward and
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remove the tax penalties you have for not having health insurance and decided to repeal the government subsidies and add the tax credits there. the first part of that plan. house speaker paul ryan says he has the votes needed for this to pass the house and senate. >> the most conservative of the republican party blasted the american healthcare act. >> this needs to be changed in a dramatic way for it to have a chance to pass. >> the far right believes the plan doesn't go far enough to end medicaid entitlements and gives too much away in tax credits. >> the president was clear when he said this bill is open for negotiation. the bill as written will not pass the senate. >> reporter: still president trump reached out to senator ted cruz and other republicans openly criticizing the plan. the president is sending vice president mike pence on a selling tour this weekend and talking directly to americans through local stations around the nation. >> it takes us back in the right direction of an american
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healthcare economy built on consumer choice. >> reporter: house speaker paul ryan says he has the votes to pass the plan, and will have it on the president's desk by easter. >> this is an all hands on deck. we all ran on repealing replacing obamacare. >> reporter: democrats also oppose the plan. >> this is a bad joke. >> reporter: but so far have let the more conservative members of the republican party make the most noise. house republican leader paul ryan says that the congressional budget office score on how much this health plan will cost will come at the beginning of next week. >> thank you very much for that. china has granted preliminary approval for at least 35 trademarks linked to president trump, giving him and his family protection if they were to develop the trump brand in that country. the trademarks were applied for last year and are registered to donald j. trump listed to the address of trump tower in new york. they include branded spars, massage parlors, golf clubs,
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hotels, insurance, finance and real estate companies, retail shops, restaurants, bars and bodyguard services. >> quite a few. >> no evidence here that there was any sort of conflict or that beijing sped it up. clearly it will reignite that debate as candidate trump has become president trump, and his sons run the business. >> still to come, the top headlines and a round up of the global market action and today's top trending stories including one of the greatest soccer comebacks of all time. this was unbelievable. >> even i heard about it. >> even you heard about it before i came in and said it. it is unbelievable. we have so many goals this week. none for arsenal really. but any way, we'll be breaking that down when we come back as well as much, much more. she's got that gorgeous 20-something skin.
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good morning. markets now, wild swings in crude. oil falling in the last hour with wti trading below $50 a barrel for the first time since mid-december. and the gop's healthcare plan clears its first hurdle moving one step closer to approval. and another day, another scandal at uber. the ridesharing app fesses up to using a tool that helped drivers dodge law enforcement authorities. details on that straight ahead. it's thursday, march 9, 2017, 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. throwback thursday, throwing it back with songs from some of the greatest dance artists of all time according to billboard. there we go. >> made the list. >> is this one of the greatest? ♪ i don't know. i don't usually question -- the fantastic music choices of sophia and chris. but guys, don't like this one. sorry. let's go to the market action. we are lower, but not significantly. if we look at futures boards right now, the s&p has just turn the positive. yesterday the nasdaq eked out a fractional gain. the dow down a third of a percent. the third straight of declines for those two indices.
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all of it was very much twisted by the fall in oil prices. down 5%. we'll get to oil shortly. energy was the worst performing sector yesterday. down 1.5%. oil is falling again this morning. asia, which was mostly negative, the nikkei had a slight gain, hong kong and shanghai down. we had disappointing cpi data for neb ofebruary out of china. something to keep an eye on. >> ppi, the wholesale price number was the highest in years. >> european trade, we have seen slight declines there. germany down 0.3%. france a quarter. some big energy names like shell suffering there in light of those lower oil prices. >> should have taken that dance song to tell that you j.lo is dating a-rod, it's on the cover of the post and everything else. >> good paper. >> can't decide whether it's
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j-rod or aa-lo. >> oil has turned lower this morning, dropping below $50 a barrel. first time we have seen that since last year. 49.42, this is after a 5% decline yesterday. now down another 2% this morning. we'll see how that impacts the overall market having flashbacks when oil breaks key levels to weighing on the prbroader equit market. brent is at the lowest level since last november. ten-year treasury note yield continues to inch higher into the fed meeting. strong adp jobs data yesterday. that drove treasury yields higher. nine days in a row for yields, firmly back above 2.50. the u.s. dollar has helped the dollar a bit, especially against the japanese yen. that tracks the treasury yields, especially the short ends. 114.70. a weaker yen. that's why the nikkei was the out-performer in the asia
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markets. as for the euro, focus on the ecb, it's a bit firmer after a few days of weakness at 1.0562. we'll see the tone that mario draghi sets. he's been dovish, suggesting that they're still firmly in easing mode. they have work to do on unemployment, but seeing better overall data and higher inflation. as for gold prices, unpressure nine days in a row? >> seven. this is the eighth if we have it. >> we are seeing gold prices down about 0.3%. >> i think the other point to note, this is not so much for today on the ecb, just moving forward, whether the more hawkish members challenge mario draghi in a more meaningful way. over the last year or so, there's been an ongoing debate, do the germans have more loose policy? no. clearly the net view is that it's worth it for the ecb, as this inflation data picks up, we'll start to see more of a public clash. mario draghi despite wanting to keep policy loose might be challenged a bit more.
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today the focus is how does he frame the stronger data in the short-term. >> the hawks or the germans have more evidence in the form of better data. >> exactly. today's agenda. a pair of economic reports out about before the opening bell. jobless claims at 8:30 a.m. eastern time. staples reports before the earn op opening, after the close, we have el pollo long cshg loco. >> the play on selfies. today's corporate stories, shares of akzo nobel are soaring in europe. this after the dutch paintmaker rejected a $22 billion takeover from u.s. rival ppg. the bid represents a 29% premium to akzo nobel's closing price yesterday. akzo nobel believes the offer
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undervalues its company and says it is exploring other options including spinning off its specialty chemicals business. there's the stock. it's flying. 14%. >> terms of the acronyms within the stocks you cover, i prefer abc to elf. >> abc and lulu. >> a better acronym. we won't repeat that. >> i'm not going there again with you. >> moving on, shell is divesting most of its canadian oil sands assets for around 7$7.3 billion. they will sell a portion of their investment in the oil field in canadian natural. shell is also teaming up with canadian natural to buy marathon oil canada for 1$1.2 billion. shares, if we look just at the shell one, highlight that the move in oil in the last hour, down about 1.3% when we did this about a half hour ago, now down 2.8. wti slipped below $50 this morning for the first time since
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k december 15th following yesterday's 5.4% decline. women's clothing retailer j. jill pricing its ipo below the expected range. the company sold about 12 million shares at $13 each. they were projected to price at $14 to $16 per share. j. jill, which has about 275 stores in the u.s. was taken private by golden gate capital in 2009 and then bought by towerbook capital in 2015. we expect that stock to open for trade at the nyse today. we'll talk to the ceo. radioshack filing for bankruptcy for the second time in two years. they faced a challenging retail environment and an unsatsz fiis partnership with wireless provider sprint. they tried to co-brand stores with sprint. general wireless which acquired radioshack in 2015 lists assets and liabilities in the range of 100 million to 5$500 million.
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bank rate's quarterly results falling short of wall street expectations. shares of the personal finance content company are lower, 10.5%. united natural foods posting better than expected quarterly results. the company beating when it comes to its full-year guidance. upbeat guidance there helping the stock 1.5%. toshiba's westinghouse electric bringing in bankruptcy attorneys after a $6 billion writedown at westinghouse wiped out toshiba equity requiring it to seek a buffer for other financial troubles. camper manufacturers, sportings good and makeup companies, the glamping world. landon dowdy has the story and some hot stocks here. >> that's right. here's a wrap of the glamping stocks. camping world giving mixed results after the bell yesterday. shares sliding on a miss in
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revenue and concern for a shortage of its used inventory. the camp world ceo is marcus lemonus of "the profit." thor industries beating on top and bottom lines this week, but the stock tanked 10 pr% on the report after worrying that costs are becoming high for the company. dick's sporting goods posting better than expected fourth quarter results but shares falling in the stock's single worst one-day performance since 2015 on disa poinppointing guid. and shares of elf soaring in after-hours trading. the company reports sales and earnings easily topping the street's forecast. it also issued a rosier than expected outlook for the new fiscal year as it continues to grow. ulta beauty reporting after the bell today. shares have been on a tear the past three years.
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the question is can it keep up that pace? one to watch today. >> thank you very much. time for our top trending stories. i like this first one very much. barcelona completing one of the most epic comebacks in soccer history. after losing 4-0 in the opening leg of their round against paris saint-germain, they needed a miracle to advanced into the uefa champions league next round. they got one. they won the second match 6-1, taking the match on aggregate 6-5. the victory sparking delirious celebrations as you can see. this was the last, last minute deep in stoppage time goal that won it for them. the last three goals all came in the last five minutes. even five minutes out it looked like they had not a chance. it was an extraordinary comeback. >> i find soccer so boaring because nobody ever scores. the scores are never high. >> the last two days, lots and
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lots of goals, much to my pain two days ago. but yesterday this was outstanding. i could watch this again and again. >> is this messi's team? >> he scored one goal. led them. he's an outstanding player this is awesome stuff. i could keep watching this. i don't know if joe took notice. lots and lots of goals the last couple of days is what he usually suggests is the worst thing about soccer, not enough goals. >> i agree with that. i find it boring. >> even on a day like this. >> an at&t glitch causing 911 outages in 14 states. police departments and government officials are blaming the company. d.c. police asking residents to try a local number to report emergencies. authorities in virginia, florida and texas sharing a similar message to residents. at&t tweeting around 10:30 p.m. eastern that the problem was resolved. uber can start testing its self-driving cars on california roads again after it secured a required permit from state
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regulators. passengers won't be allowed in the back seated for now. in separate news on the company, uber says it will stop using greyball technology, a program that helped it evade authorities in cities where the service is ban. greyball showed users that no cars were available. uber acknowledged existence of the technology last week. ub sore in the spotlig uber so in the spotlight the last week. still to come, the must reads. first a look at where european equities are trading at this hour ahead of the ecb decision. they slipped a bit as oil prices have slipped as well. ftse 100 down 0.6%. we're back in a couple minutes. . since i added futures, i have access to the oil markets and gold markets. okay.
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. welcome back to "worldwide exchange." time for our must read stories catching our attention. a lot to choose from today. i went with the "wall street journal." jason fuhrman because it was notable he is writing about the fed. he was president obama's chairman of council of economic advisers. he is writing about what the fed should do next, follow the leader. it was a rare applause for jelen. he writes the fed outperforms its peer institutions by ignoring the critics rather than sticking to a simple rule or time depend dent strategy, the
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fed remained flexible it was able to respond to events like the eurozone crisis and broader economic development such as mounting evidence for a lower neutral rate of interest. he looks at the score when it comes to the unemployment rate under the fed's extraordinary policies when it comes to the inflation target nearing the 2% price stability goal and says the fed was right to avoid the noise and critics, which there has been endless amounts and looks forward to what they should do next, raise interest rates, not get behind the curve. he makes the point it's important for the fed to remain independent amid calls for it to follow some sort of rules-based system, worth a read from someone who we tried for years to get to comment on the fed when he was at the white house and was not allowed to do so. >> i'm excited about that fed meeting next week. a little bit of action. all markets will be focused on it. >> always exciting when there is a news conference.
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>> unlike the ecb today. my pick today is in the "wall street journal" titled "the ultimate trump-putin deal." mr. trump has an opportunity to begin a business-like dialogue with mr. putin not about the vital issues always in the headlines, but a far more important problem, how to avoid unness conflicts inside and outside russia by ensuring a smooth transition of power. he is talking about in terms of trying to encourage mr. putin to step down gracefully and that that could be the big thing he seeks in order to pick up sanctions, et cetera, in terms of what russia would be seeking in any deal. it's not something we talk about very much. i do think it would be hugely welcomed both by people in russia and across europe. i'm not sure if it's the sort of victory that donald trump could deliver that would be applauded as clearly in the u.s.
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certainly not in the short-term. but it is actually an important constructive take on what could come out of this. clearly we are a long, long away from any positive deal. it's a good take on it from a russian writing about what could be coming out of this deal. >> now we have an ambassador to russia, jon huntsman. we're approaching the top of the hour. the team is getting ready for "squawk box." becky quick has a look at what is coming up on the show. good morning. >> good morning. what do you guys think the most concerning thing, the most concerning issue is in america right now as it comes to foreign relations? what would you kayou say? >> at the moment everyone is focused on the russia deal, whether that is crucial to america's interests or -- top of the agenda. >> north korea. >> those are my two issues, russia and north korea. this morning on "squawk box," we'll have a whole list of other things to worry about. we have tom ridge, the first homeland security head, who will be joining us this morning. he will talk about the big risk
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of cybersecurity. big issues there. everyone knows it's a problem. ceos tend to think their own house is in order, when you talk to technical people, i.t. people, they don't think those houses are in order. we'll talk more about how he sees things shaping up. what the risks are, and how you can protect yourself when it comes to those issues. >> then joined by senator joseph lieberman. he will talk about bioterrorism threats. these are issues that both these gentlemen have dug into on a deep level. they're both concerned about some things out there. we'll give you other issues to worry about this morning. plus we'll be joined by tobey cosgrove, the head of the cleveland clinic. he will talk about the new healthcare act, the republican plan put forth what he thinks about it, what the good is, where he is concerned and whether he thinks this is going to get passed. also we'll be joined by scott pruitt, the epa administrati aa. he is coming under fire because
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he wants to dismantle many of the issues the epa put in place over the years. guys, just to brighten your morning a bit, lots of things to worry about. >> lovely stuff. we look forward to that. "squawk box" in ten minutes time. i think becky was looking for a quick one-word answer from us. i gave an elongated one. >> when it comes to foreign policy -- >> so many questions. we look forward to that. still to come on "worldwide exchange," the jobs report, a looming fed hike, the trump trade and the anniversary of the start of the bull market. we'll talk about it all with jack caffrey of jpmorgan private bank. we're back in a couple minutes. she's got that gorgeous 20-something skin.
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dow futures down about 4 points. s&p barely positive. nasdaq down less than a point. joining us on this eight-year anniversary of the bull market, jack caffrey portfolio manager from jpmorgan private bank. good morning to you. >> good morning. >> second longest bull market run in history. next to the october 1990 to march 2001. where are we? what comes next? >> i think we like to talk about the length of market expansions, we like to talk about the length of economic expansion. while those are long, the economic expansion has been muted against history as well. when we look at what we're seeing today, we have actually seen a shift in the economic data, which has gotten to be globally very positive versus expectations. i think that supports earnings. earnings growth has been driving us higher for the last several years. valuations have helped. earnings have become the story over the next several years to continue this expansion for another year or two. >> jack, in terms of central bank policy, we have ecb today.
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and expecting a rate hike from the fed next week. to what extent are those moves or not moves priced in already when we look at euro/dollar? >> i think when you look at the foreign exchange markets or at least the fixed income markets, the fed is -- i won't say certainty but is as close to certainty as you wind up getting in the futures market that speaks to a growing confidence in the expansion being sustainable. a bit of a shift away from the idea that we had dominating markets for the prior 7 1/2 years. one of bad news was good news because it kept accommodative central banks and led to the risk on risk off trades dominating. >> let's talk about sectors. if you look over the last eight years of the bull market, consumer discretionary is the top performing sector, energy is the worst with a gain of 67%. here we are this morning finding ourselves worried about the price of oil.
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the bulls are. oil dropping below $50 a barrel. how much of a threat is that to the equity market? >> i think weaker oil is probably actually healthier in the longer run. weaker oil can take some inflation pressures off, it would keep some worries about the fed becoming more aggressive than they might have wanted to have been or might be actually looking for. the fact that the consumer has done as well as it has. that speaks to low interest rates and speaks to the process of wage gains. the wage gain story has been muted so far. i think we are actually seeing some signs that's beginning to build a bit and can speak to some health. but energy has been a bit of a wildcard. it's been a wildcard for some time and a dramatic underperformer year to date. >> it's dropped more noticeably, oil prices, dropped below a barrel, so significant momentum behind this slide over the last couple of days, down 2.7% following yesterday's 5.3%. how dangerous is this to derail
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more broadly the optimism we've seen in markets recently? >> i think what we're continuing to work our way through is one of how do we rebalance this market? i think most forecasts are for much better balance this year than last year. i think if we put it in the context of if we were sitting here a year ago, we would have seen oil trading in the high 20s, low 30s. we've seen a massive rally in energy prices on a year-on-year basis. the fact that that massive rally needs to digest a bit speaks to a healthy balancing within a market and traders taking profits, which is certainly the case. they'll take profits when they can't think the next week or week or two is positive. >> jack, thank you. >> thank you. >> second longest bull market run in history. fourth best in terms of its performance with that 250% gain. the one that i mentioned in the '90s, that was more than 400% gain.
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>> let's look at energy prices. it's the big mover this morning. slipping significantly in the last hour, below $49 on wti. that's it for "worldwide exchange." squawk squa "squawk box" is next.
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good morning. wild swings in oil prices. crude dipping below $50 a barrel adding to yesterday's 5% dip which has affected the stock market. central banks in focus. the ecb's latest policy decision due today. we'll tell you what to expect when mario draghi speaks. the gop healthcare plan clearing its first hurdle. a live report from washington is straight ahead. it's thursday march 9, 2017. "squawk box" begins right now. ♪
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>> live from new york where business never sleeps, this is "squawk box." good morning, everybody. welcome to "squawk box" on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. happy birthday to the bull market. today marks eight years since the march 9, 2009 low. a lot of squawk viewers and cnbc viewers know it as the haines bottom after hark haines said on cnbc on march 10th that he thinks the market hit its low. look where we have come from then. 666 back to 2300 and change. look at the u.s. equity futures. the dow futures are indicated down by 14 points. markets have been down. the dow and s&p have at least for the last three trading


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