Skip to main content

tv   Worldwide Exchange  CNBC  June 22, 2017 5:00am-6:01am EDT

5:00 am
good morning crude realities. oil prices continue to slide as glut concerns persist. breaking deal news private equity firm reportedly in advanced talks to buy staples. and that's the spirit. george clooney scores a big pay day by selling his tequila brand to diageo. it's thursday, june 22, 2017 and "worldwide exchange" begins right now. ♪ good morning welcome to "worldwide exchange." i'm sara eisen >> i'm wilfred frost
5:01 am
good morning to you from me as well >> throwback thursday. we're throwing it back for the best anthems for pride month let's check in on the global markets. showing you what's happening with futures after mixed ending to yesterday's session the nasdaq rose about 0.p% the dow and s&p finished lower. biotech has been strong lately we'll talk about that. >> it was a big turnaround from where we stood this time yesterday. the nasdaq was down about a half percent and ended up three quarters of a percent. >> the futures were not a tell for the session. nasdaq futures higher. nasdaq down 1, s&p down 3. not a lot of movement this morning. oil prices front and center. those low prices a drag on energy stocks for sure also keeping yields lower. wti, 42.44, down about 0.2%. brent crude below $45 a barrel nat gas higher this morning. >> that meant energy was the
5:02 am
worst performing sector but only just beating banks in terms of the under-performance. energy down 1.6% banks down over 1% focus on them again today ahead of the stress test results asian equities at this hour, mixed performance. china had a tough day down about a third of a percent the shin zen com shenzhen comp . european trade is soft across the board today. oil prices falling yesterday down about 0.6% for france and the uk germany outperforming. only down 0.3% >> the broader market picture. treasuries this morning. mentioned lower yields 2.14 on the ten-year yield buying of treasuries the bond market is not buying the inflation story the fed is trying to tell it's oil and commodities across the board. kit juckes of socgen pointing
5:03 am
out cocoa futures are at a low as well. there's the ten we're yield ever lower. as for the u.s. dollar, the dollar/yen reversed after this time this morning. it was higher yesterday. that fueled better tone. it's weaker against the japanese yen. dollar is weaker against the euro as well the pound is weaker against the dollar at 1.26.66. >> having gotten an interesting intersb int intraday bounce yesterday. >> gold prices quickly, let's show you what's happening there. usually in the reverse of the dollar higher this morning by about whatever percent shares of staples are surging on reports that the office supply chain is in talks with sycamore partners to go private. a deal could be worth $6 billion.
5:04 am
it would come a year after a u.s. judge blocked a merger between staples and office depot. sycamore won the deal in an auction. oracle shares are popping after earnings blew past expectations total cloud revenue soaring more than 58% the company also offering an upbeat forecast for the current quarter. don't miss mark hurd on squawk ali. takata will file for bankruptcy in japan on monday. the company faces billions in liabilities stemming from the biggest recall in automotive history. shares traded for the first time in nearly a week today and lost about half of their value. the air bagmaker will seek a bridge loan. takata's filing would reportedly coinside with a deal for financial support from u.s. auto parts maker key safety systems which is expected to buy some of takata's assets. cable operator altice usa
5:05 am
racing 1.9 billion in its offering last night. shares priced at $30 each, near the top of the expected range. it's the second largest ipo this year altice bought cable vision and sudden link communications shares will trade today at the new york stock exchange under ticker atus. investors will get a fresh look at the labor market weekly jobless claims at 8:30 a.m. as for earnings, barnes and noble and accenture. bed bath & beyond after the close. in europe, eu leaders are gathers in brussels. theresa may will attend part of it as usual, as is the case in recent times, she'll have to leave a day early. we're keeping an eye on the banks with stress tests due after the close what are we watching in these results? >> the stress tests today, you
5:06 am
don't get a simple pass or fail. that's next week this is an indication of how much capital the banks would have left under various straes sna stress scenarios it's a sort of warm-up act for the ccar the key takeaway is the health of the banking system, does everyone pass, and how confident are the banks in requesting to pay out capital and the regulators allowing them to do that the thought is that quite a few of the big names could look to pay out more than 100% of earnings this year, ie start to reduce that capital buffer that they built up. if that's permitted and lots of banks do that, that's a sign of how much the regulatory pendulum was swinging before truchmp's ayend da h agenda had taken hold. >> who are they looking at >> citi is an interesting one because people think they'll
5:07 am
have an ambitious request to pay out capital. also people wonder about the qualitative part of the tests next week for wells fargo. the bottom line is analysts expect them all to pass. that's a sign of how much better prepared they are. >> could be the next catalyst for the banks which have come back lately. >> net up over the course of june late yesterday and last week a couple of soft days. overall there could be a catalyst or reminder of that key thing we have seen since the election you don't need that much deregulation just to remind yourselves that we're not in a tough regulatory environment >> other stocks to watch today novartis shares rising the anti inflammatory heart drug showing positive results in a key clinical trial shares of steel case plunging. the furniture company reporting lower than expected numbers in
5:08 am
revenue. and snap acquiring mapping start up zen lee the company turning zen lee into a future on its snapchat app allowing users to see friends photos and videos posted by locati location. glaxosmithkline winning a 2$235 million award from teva i a patent trial >> patent. >> well, is it patent? >> i have to correct you on that one. >> i will stick with patent. maybe you're right >> maybe >> new field exploration shares. the falling oil prices weighing on the sector. that stock is off 3% and imagination technologies putting itself up for sale this coming weeks after the chip designeder launched a formal dispute against apple. down -- we don't have the share price. maybe we won't bill girlurley has stepped n
5:09 am
from his role at uber. he will be replaced by a colleague from his investment firm benchmark.wisher of re/codd him. board member, but also praising kalanick afterwards saying he will be remembered as one of the greats his name got caught up in it maybe decided tostep aside to leave room for a new era >> still a board seat kept by his company. just a slight change versus the massive changes at the executive level. so many positions to fill. they have a management executive committee of ten people overseeing everything. i wonder if this is the time for lyft to grab market share. >> i would think so. they're raising money as well. >> we'll have to see how bigger long-term this has on uber.
5:10 am
coming up, president trump set to meet with leaders from the tech world again today senate republicans will release their healthcare bill. we'll set you up for the trading day ahead. manage my portfolio. since i added futures, i have access to the oil markets and gold markets. okay. i'm plugged into equities- trade confirmed- and i have global access 24/7. meaning i can do what i need to do, then i can focus on what i want to do. visit learnfuturestoday.com to see what adding futures can do for you.
5:11 am
5:12 am
but we've got the get tdigital tools to help. now with xfinity's my account, you can figure things out easily, so you won't even have to call us. change your wifi password to something you can actually remember, instantly. add that premium channel, and watch the show everyone's talking about, tonight. and the bill you need to pay? do it in seconds. because we should fit into your life, not the other way around. go to xfinity.com/myaccount welcome back good morning to you. let's get you up to speed on the market action. oil prices declined 2.25
5:13 am
yesterday, wti did any way 42.5 this morning. lots of question marks whether we slip below $40 the still a way away from that at this stage. energy sector was the worst performing on the energy sector yesterday. energy down 1.6% banks down over 1% the best performing sector was healthcare interesting that the nasdaq outperformed having been down about a half percent this time yesterday in the futures market. the nasdaq ended up 0.75% with the s&p flat the dow down 0.3 this morning a bit of softness to the tune of 0.10% declines in europe of 0.5% for this hour. president trump is hosting another group of tech leaders in washington today the focus, drones and 5g wirelessatives from sprint,
5:14 am
horizon, honeywell will expected to attend. randall stephenson will be on squux squa squawk at 10:00 a.m. before meeting the president. the senate republicans are set to release the healthcare bill today. a vote could happen as early as next week but senators can't vote on the bill until the congressional budget office scores it. and democrats say they'll attempt to draw out the legislative process in opposition of the plan either way, i would think also senate republicans need to see the plan it's been secretly held to the vest so far. we will get our first peek or they will >> could be big progress if we see that going it's not done and dusted, but -- >> ambitious if they can pass it by next week. now to our must-read stories which we will do early now my pick is in the "new york times. how to respond to north korea's
5:15 am
treatment of otto warmbier, penned by christopher hill this story continues to haunt americans. which is why i picked it local cincinnati boy we knew the family terrible tragedy what do you do about it? that's the question that the "new york times" op-ed writer is trying to tackle we would be morley justified in launching a military attack. the north koreaens left us to conclude that our citizen was brutalized in their custody. but a military strike would be a mistake for now, for the same reasons that bedevil possible military action in response to the country's nuclear program, at least 20 million south korean lives would be put in danger
5:16 am
the trump administration has been on top of this they brought otto home, even if in terrible condition and in a coma, and president trump continues to speak about this we'll see what administration does about it. >> crucial meetings to come in the next week or so. most people commending the tone of his tweets yesterday condemning north korea, saying that china weren't able to help, but not going so far as to condemn china as well. so there might be some room for continued better relationships with china >> cooperation, trying to get is something. >> clearly, this op-ed, which i didn't include in my snippet, we need explanation and answers as to what happened to him. clearly this made an impact as to the brutality of the north korean regime and how it affects americans. there are still americans being held in custody. my pick is in the "the financial times," the democratic journey to the populist left
5:17 am
the bottom line is the columnest writes the question is no longest whether america's populist left is rising, it is who will lead it it runs through the failures of what was sort of a center-left traditional democrat campaign and likens it in part to the uk and jeremy corbin's risrbyn ris this victory was a victory for trump, and wonders if moving forward, if there are other runoff elections that could give more of a chance to someone like him winning the nomination in three years time >> maybe, or maybe they need a stronger candidate who lived inside the district as joe scarborough keeps saying >> lots of question marks. but an interesting take on whether there is -- >> everything is a soul searching opportunity for the democrats. still ahead, george clooney's massive pay day. how the hollywood superstar scored a billion dollars for his
5:18 am
tequila company. >> first here is the national weather forecast from nbc's bill karins good thursday morning to you. tropical storm cindy making landfall this is a weak system, winds are not a problem. just the spiraling bands of rain and thunderstorms, we'll worry about flash flooding today 10 million people at risk of flash flooding the worst is here along the texas/louisiana border and back up towards memphis tonight as far as the severe weather goes, isolated tornadoes possible with those spiraling bans today, an isolated strong storm from iowa back to chicago. we can't get rid of the heat wave in the west, 27 million people at risk of the excessive heat from arizona through to california great weather in the northeast enjoy that while it lasts. more "worldwide exchange" when we come back
5:19 am
with type 2 diabetes a lower a1c is a lot about choices. but it can be hard sometimes, 'cause different sides of you struggle with which ones to make. well, what if you kept making good ones? then? you could love your numbers. discover once-daily invokana®, a pill used along with diet and exercise to significantly lower blood sugar in adults with type 2 diabetes. it's proven to lower a1c better than januvia®. invokana® works around the clock by sending some sugar out of your body through the process of urination.
5:20 am
it's not for lowering systolic blood pressure or weight loss, but it may help with both. invokana® may cause dehydration, which could make you feel dizzy or weak when you stand up, so be sure to drink enough water. important side effects to know may include kidney problems, genital yeast infections, changes in urination, or potentially serious urinary tract infections. as is risk of fracture, or increases in cholesterol or potassium. ketoacidosis is a serious condition, which can be life threatening. stop taking invokana® and call your doctor right away if you experience symptoms. or if you have an allergic reaction, with signs like rash, swelling, or difficulty breathing or swallowing. do not take if you have severe liver or kidney problems or are on dialysis. taking with a sulfonylurea or insulin may cause low blood sugar. the choice is yours. ♪ lower your blood sugar with invokana®.
5:21 am
imagine loving your numbers. there's only one invokana®. ask your doctor about it by name. welcome back to "worldwide exchange." let's check on the market action a bit soft around the rest of the world. asia below the flat line not too bad. we saw declines in shanghai down 0.3% they got a pop yesterday when it came to the announcement that they would be joining the msci world index. european traders softer. down 0.6% in london and france for futures, we're soft, but not
5:22 am
quite as much as europe. this comes after a day of gains for the nasdaq for yesterday, but declines for the dow s&p was flat trending stories today, george clooney getting buzz after selling his tequila business for a draw dropping amount of money. landon dowdy has the details how did this happen? wasn't this an accidental company? >> it was, this is a great story. george clooney is selling his tequila company, casamigo to diageo for up to $1 billion diageo will pay 700 million with another 300 million based on the popularity in a statement to cnbc, clooney said if you asked us four years ago if we had a billion dollar company, i don't think i would have said yes. this reflects diageo's belief in our company and our belief in diageo but we're not going anywhere we'll still be very much a part
5:23 am
of casamigos, starting with a shot tonight, maybe two the deal is ed ted to close in the second half of 2017. this comes as tequila sales are on the rise in the u.s according to alcohol research group, iwsr. overall tequila volume grew by 7.4% last year diageo is the market leader in spirits. in fact, back in 2014, diageo acquired another tequila brand, don julio in exchange for its bushmills whiskey brand. tequila is hot, diageo is betting big. >> i didn't know clooney had a tequila company. >> he lives next door to randy gerber who is cindy crawford's husband. they wanted tequila that didn't make them feel hungover. they worked with a distiller for the first two years they
5:24 am
kept it between them and their family the distiller is saying, guys, you order so much, either you drink a lot or you're selling it this is over the sample. so they decided to start selling it the overall thing here, what does it say for -- beer volumes are down everyone is drinking imported beer >> hard liquor >> tequila so what does that say for -- if we come into a trade war, what does that mean for mexican beer, all this tequila people are drinking less but drinking higher end. >> mexican beer is hot >> exactly >> it's mexican beer, mexican tequila. >> exactly >> i prefer scotch >> there we go >> thank you coming up, the top stories and a round up of global markets, what main street wants from washington. a new survey on small business and tax rermfo stay tuned, you're watching "worldwide exchange" on cnbc
5:25 am
5:26 am
5:27 am
the crude crunch continues as oil plunges deeper into a bear market. will the selloff in energy put an end to wall street's recent rally? >> sycamore partners is reportedly in talks to buy staples. full details ahead. and steve schwarzman is making a big bet on the future he's looking to china to do it it's thursday, june 22, 2017, you're watching "worldwide exchange" on cnbc.
5:28 am
♪ good morning welcome back to "worldwide exchange" on cnbc. i'm sara eisen >> i'm wilfred frost good morning to you from me as well let's get straight to the market picture, which is soft, slightly mixed. the nasdaq has been touching some green just into the red. soft across the board by 0.1%. the dow down 5 points. nasdaq down two. s&p down 3 the s&p was flat dow down a third of a percent. we saw oil, energy as the worst performing sector down 1.6%. banks suffered, too. on the flip side, healthcare was the best performer 8 out of 11 sectors were down. asia was a bit soft, kind of similar falls as we're seeing in the futures market in europe, a bit more softness, down 0.6%, 0.7% in the uk and france germany down 0.4
5:29 am
the broader markets, oil putting a damper on the market mood wti crude hovering near ten-month lows at 42.50. pretty much flat this morning. we'll see which way it goes. brent turned positive barely, 44.83. as for the ten-year treasury note yield, low oil prices has put pressure on treasury yields. they remain low. 2.14 on the yield. lots of thought that inflation is not coming. as for the u.s. dollar, mixed picture. weaker against the euro and the japanese yen this morning following treasury yields lower. not such huge moves for the rur euro, 1.117 p.
5:30 am
t >> breaking corporate news, sycamore partners is in advanced talks to buy staples reuters says the deal could top $6 billion in value. an announcement could come next week we reached out to staples, they said we do not comment on rumor or speculation the shares are higher by 5%. investors will get a fresh look at the labor market weekly jobless claims at 8:30 a.m. as for earnings, barnes and noble and accenture. bed bath & beyond after the close. altice usa is expected to make its public debut on the new york stocks exchange today. the cable company raised 1$1.9 billion in its ipo making it the biggest listed telecom company to go public since 2000. altice priced 63.9 million shares at $30 a piece last night. you will hear from the ceo at
5:31 am
10:00 a.m. stocks to watch today, oracle shares jumping more than 10% after the blowout results. oracle is 11 cents above estimates. the company upped its guidance for the current quarter. mark hurd will be on cnbc today at 11:00 a.m. eastern. shares up 10%. takata shares down over 50% after reports came out overnight that the company will file for bankruptcy protection as early as monday this comes as japanese air bagmaker faces billions in liability stemming from the biggest recall in automotive history. shares of steel case are mrangimrang i plunging after weaker than expected sales up next, hungry for tax reform we're headed to the front lines of u.s. economy to hear what small business owners want from president trump. and don't miss a cnbc exclusive with goldman sachs president and co-coo harvey sha
5:32 am
wa schwartz his first television interview he's jntoi number two with david solomon. hey. hi. hi. you guys going to the company picnic this weekend? picnics are delightful. oh, wish we could. but we're stuck here catching up on claims. but we just compared historical claims to coverages. but we have those new audits. my natural language api can help us score those by noon. great. see you guys there. we would not miss it. watson, you gotta learn how to take a hint. i love to learn.
5:33 am
looking from a fresh perspective can make all the difference. watson, you gotta learn how to take a hint. it can provide what we call an unlock: a realization that often reveals a better path forward. at wells fargo, it's our expertise in finding this kind of insight that has lead us to become one of the largest investment and wealth management firms in the country. discover how we can help find your unlock. you give us comfort. and we give you bare feet... i love you, couch. ...backsweat and gordo's everything. i love you, but sometimes you stink. ♪ new febreze fabric refresher with odorclear technology...
5:34 am
...cleans away odors like never before. because the things you love the most can stink. and plug in febreze to keep your whole room fresh for up... ...to 45 days. breathe happy with new febreze. good morning welcome back to "worldwide exchange." futures pointing lower, albeit by 0.2%.
5:35 am
we lost a bit of impetus in the last half hour still only small declines. coming off a day when the nasdaq was up 0.75% the s&p was flat and the dow down 0.3%. yesterday energy was the worst performing sector. oil prices were down almost 2.25%. they just turned around quite significantly in the last 15 minutes. we sat here earlier and wti was flat to down so we got 0.6%, 0.7% bump in wti in the last 15, 20 minutes 42.6 for wt ii. president trump is talking tech at the white house today, but american small business owners want him talking taxes. so far the administration has only offered a bare bones plan for overalling the tax code. kate rogers is in charlotte
5:36 am
talking with small business owners he cares what they think, doesn't he >> he does small businesses like melt in your mouth cupcakes say they're hoping for tax reform under the new administration the mother/son team behind this small business say they pay about 3 cent 35 cents on every they make into taxes that's one thing they take into consideration when they decide whether to hire, expand and grow >> we're in the process of trying to open up two new stores, paying the taxes on this one is taking capital away that we could be spending on something else it's very important for us to get the tax burden off of our backs. >> the chambers are not alone in feeling that recently the cnbc survey monkey small business optimism index found taxes were the top issue for about 25% of small businesses polled. we also heard from house speaker
5:37 am
paul ryan earlier in the week about the importance of parity or equality when it comes to tax rates between large corporations and small businesses like this one that file at the individual rate >> here in america, 8 out of 10 businesses file taxes as individuals. most of our jobs come from these new and small businesses under our crazy system successful small businesses pay a top marginal tax rate of 44.6%. it's crazy >> the chambers hear they're hopeful that president trump can push forward the agenda. given the turmoil we've seen in washington over the healthcare bill, they're not feeling too confident he can get that done any time soon. back over to you >> kate rodgers thank you very much up next, crude realities could the drop in oil put an end to wall street's record rally?
5:38 am
answers ahead. first the action in europe it is soft, down 0.5%.
5:39 am
5:40 am
billionaire investor steve schwarzman is making a big beth on the future and is looking to china to do it he raised $30 mil3 35$350 milli swartzman scholars, a 21st version of the rhodes scholarship but centered in beijing. a new cnbc documentary follows the new class of schoolers as they study the network and bridge cultural divides outside the classroom. >> playing basketball offers an easy way to communicate. on the court it doesn't matter where you're from. >> on the field there's a lot of
5:41 am
emotion. >> you asked for the ball. >> to an outside observer, looks a lot like these guys don't like each other at all. we're playing hard that, to me, is the place where the bridge is really gets built. >> there's a lot of athletes in this program, which is great also a lot of people interested in using sports as a vehicle to get to know other chinese students >> ted, joe switch >> jordan turner, a former division 1 basketball player takes charge as the men's coach. >> ref, ref, that's a foul >> reporter: in a clash of colleges, the swartzman team battling the journalism school for bragging rights. these guys won't be turning pro any time soon. but it's a chance for them to find common ground >> a billionaires bet, the best and brightest premieres sunday
5:42 am
night. we have a treat for you, joining us from beijing, daniel glenn and jordan turner. congratulations. >> thank you >> thank you very much >> we have a bit of a delay. i'll start with you first, jordan how did you get involved with the program? how did you apply? what are you finding so far? >> sure. so at dartmouth i studied asian studies and government i sort of had always known i wanted to be involved with china. my junior year i studied abroad in beijing my junior year when i was thinking about post graduation plans, i went to the scholarship office and they said there's a program that the application will come out for in the summertime, the application went live in the summer i read up about the program, it sound like the nexus like a lot
5:43 am
of things that i spent so much time studying. it was a great venue for me to continue studying china, learning about it in a very experiential and immersive way got lucky and here i am. >> daniel, you are well qualified, clearly this program is focused for the best and brightest, why, daniel, specifically did you decide to continue your education down this route rather than going into a business or work already? you are getting enough out of it, do you feel? >> yes, thank you very much. i think whether we're the best and brightest remains to be seen that's up for us to now prove. though that's renice very nice u to say it was a point of confluence of many interests the opportunity to hone
5:44 am
leadership skills, the opportunity to establish relationships with people like this, to be a little competitive with people that are high potent initial and spurltive individuals. when i heard from the program from a mentor of mine, i was getting out of the military, i was bomb diffusefde-fusser. when i heard about this, i thought it was a second to none program. the opportunities that came of it would be wonderful. i decided to engage. don't regret it for a second >> jordan, what's next for you will you come back home to the u.s. how will you use what you learned? >> so, i actually recently accepted an offer. i will be working in d.c i'm excited to get started there i had so much exposure to people from different careers, walks of life and different parts of the world
5:45 am
i really came to the career decision through the exposure i got with members of my cohort. so i'm excited about that decision, i feel good about it in terms of a continued relationship with china, i'm hoping somewhere further down the line to get into diplomacy work i hope to see china/u.s. relations in that part of my career excited to see how that manifests, but intend to keep the relationship that i've begun with china >> daniel what do you think about the relations between america and china, having been on the ground there in beijing you are optimistic about the future >> i am optimistic very much so i think that what i have seen out of the chinese people, the chinese culture, even chinese politics has been very surprising to me and overwhelmingly positive on that surprise. so i think there may be no country on earth that is better equipped for a lot of the challenges that i foresee
5:46 am
humidity facing in the 21st century. and i think that they are very welcoming of america in many different respects i think there's a natural curiosity of the chinese people that will play in the favor of the east/west relationship but i do think that it's going to require care, a lot of patience, and a lot of optimism on both sides. it will require people like jordan, like claire, like others in our program that are pushing from the chinese side while we push from the american side to always keep cooperation the rule of our relationship as opposed to competition >> daniel, jordan, thank you very much for joining us this morning. don't miss "a billionaire's bet: the best and brightest" this sunday at 10:00 p.m. coming up on "squawk box," you'll hear more from the man behind it, steve schwarzman
5:47 am
today at 7:30 a.m. eastern on "squawk box. let get an update of what else is to come later today. becky joins us live from new york >> exactly steve schwarzman will be here to talk about this bet that he's made we have a lot of things to talk to him about, including where he sees the markets now what's happening with private equity, what hethinks about th bond markets. >> we'll get his thoughts on those things this morning. another ceo sitting down with us, randall stevenson of at&t. he'll be at the white house for the second day of the technology summit that's taking place there. we'll talk about what's happening with his deal. there's been democrats who have been kind of shaking things up, trying to tell the justice department that it should be blocking this deal that at&t has coming up with time warner we'll talk about all of those issues plus taxes front and center. we've been talking about this all week long.
5:48 am
this morning we'll sit down with kevin brady. kevin brady, the head of the house ways and means committee will be joining ug also steny hoyer, we'll hear where he sees things going and steve forbes will be joining us, he will sit down with us at 6:30 also, coach k. is going to be joining us we'll talk to him about the duke basketball team. huge fan in john harwood coach k. will tell us what he sees happening he will be ringing the opening bell on the nasdaq today >> we look forward to it
5:49 am
coming up on "worldwide exchange," a discussion about what to expect trading today futures at this hour, still pointing lower mixed actually we improved a bit in the last few minutes. the dow higher by 3 points the nasdaq by 5. let's discuss markets with j.j.j.j. j.j. killihan. front and center is oil prices down about 2% yesterday. they were down half a percent a couple hours ago now in positive territory for this morning is that encouraging to you do you think we reached the bottom of this oil price slide >> i don't know if we reached the bottom 44 was a big level we slid down the next true support is at 40 you may see people start to bottom pick here or some shorts start to cover, which would be good because as it affects the stocks, i think one thing that you'll start to see is people question earnings now. we had great earnings cycles
5:50 am
but at 40 it certainly becomes a drag on earnings, particularly for the -- all of the energy stocks you've seen how they've been the weakest sector i would expect this to continue as long as the crude prices continue to drag down. what about the rests of the earnings picture and expectation shaping up it's always -- it always reads x energy we always expect energy to be weaker depending on what the oil price is doing how are the rest of earnings expectations shaping up? >> i think we'll continue to see good earnings everywhere else. i thought the most interesting thing of the last two rounds of earnings has been the different picture that the ceos have painted. if you think about earnings a year ago the ceo would get up and say at this pace we think we can continue with the slow growth rate. the last earnings cycle you heard ceos get up and say we see growth, we see potential, those
5:51 am
that were multinational got up and talked about the fact that asia is recovering, europe is finally starting to grow, they felt good about it, and the u.s. was in a good place. people want to talk about the economic numbers being weak, but if you look at employment, which tends to drive most things like earnings drives the market, it looks good to me the funniest thing about the market, last week, we were sitting at new highs all you hear is the bad things nobody -- on your show all the time, people come on, they're like this is why the markets are domed. they've been doing it for a year it's the most disrespected market there's swirl around it, but earnings have been good. look to be good the next quarter, if crude doesn't crap out so to speak further. i find it interesting. the last thing is vix is kind of telling us to ignore a lot of
5:52 am
the swirl. many people say vix is broken. but what i know about options is that volatility is lower when markets go higher. volatility is incredibly low the market is avoiding the political and jargon swirl >> that's fair to say with the volatility in equity markets, but it's not true when you look at bond market we have a flatter yield curve which does not point to an optimistic future. the dollar has slipped volatility has been higher those things don't concern ou? >> don't get me wrong. it would be healthy if we had a pull back. but if you look at what drives equity markets, it is earnings earnings have been good. look to be good going forward as we head into the earnings season in the next couple of weeks. from that point of view i'm optimistic the -- i think one of the biggest conundrums for investors, if you talk about energy versus rates.
5:53 am
looking at exxon/chevron, a lot of trade lately has been towards dividend paying stocks the at&ts and verizons the problem with them with the exxons and chevrons as energy weakens, we have a 2.15 ten-year yields, people are looking for the 4, 5 yields. >> dividend stocks will continue to be in demand. >> i think so. if we sat down here six months ago, i don't think any of us would think the rates would be less than 2% >> 2.14 this morning >> even when come banks didn't come in as good as they should, they've done okay. i don't see it as a major drag >> top sector pick has to be financials they had a bump with the rate hike last week overall the earnings season, i look at them to do the best.
5:54 am
a a lot of the world is recovering with that, the big multinational banks, one thing that people miss is after 2008, one thing the financial sector did was it became so efficient and well run, there's little to no fat on the bones. >> finally, what are you seeing at t.d. ameritrade as far as flows and retail participation. >> the last four months our clients have been net buyers they participated. apple and facebook two of the stocks they've been in i would expect that we will release our imx the second monday in july i would expect that to continue. >> j.j., thank you very much for joining us >> thank you
5:55 am
some stocks to watch oracle shares popping after earnings blew past wall street expectations total cloud revenue soaring more than 58% in the last period. up 10% don't miss mark hurd on "squawk alley" at 11:00 a.m. eastern. and novartis's heart drug showing positive results in a key lyclinical trial and shares of steelcase plunging, offering down beat guidance. snap acquiring mapping start up zenly for 2$200 million in cash now you can sfreends, foe friens by location. glaxosmithkline winning a 2$235 million award from teva i a patent trial
5:56 am
n newfield exploration shares falling. takata shares are down big the company is expected to file for bankruptcy in japan on monday the company faces billions in liability stemming from the biggest recall in auto history less than a minute to go one thing i'll be watching is in my sector that i follow, haines celesti celestial. it has not released financial results in over a year it was pulled on accounting questions. they will release the report at the top of the hour. it's a read on the company, which has faced big question marks. it should be interesting >> i'll watch the two sectors that underperformed yesterday, energy because of oil prices which have, as we said, turned around in the last half hour or so oil prices are up 0.7% does that stem that slide? also bank stocks
5:57 am
they were down over a percent yesterday. we have stress tests at 4:30 p.m. eastern >> you're hitting it >> i'll be hitting it. >> that's it for wex
5:58 am
5:59 am
good morning another high profile depart cho ure from uber. bill gurley now leaving the board. big swings in crude prices ma prices fluctuating. prices are on the move in early trading. and george clooney cashing in on his tequila brand casamigos. selling it to diageo for up to 1 $1 billion
6:00 am
it's not clear what his stake is we'll let you know it's thursday, june 22, 2017, "squawk box" begins now. ♪ live from new york where business never sleeps, this is "squawk box. good morning 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 andrew is off today. our guest host is richard turnow great to see you >> great to be here. >> we have a big lineup today. not only richard here, at 7 c:0, we have rand stephenson, then we have steve schwarzman, steny hoyer and at 8:30, kevin brady u.s. equit

22 Views

info Stream Only

Uploaded by TV Archive on