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tv   Worldwide Exchange  CNBC  October 9, 2017 5:00am-6:00am EDT

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. markets now stocks pointing to a mixed open on wall street as traders gear up for a new week we have your trading day set up. that's straight ahead. breaking overnight, president trump calls on congress to fund a border wall as part of a deal for the so-called d.r.e.a.m.ers. we're live in washington coming up. plus, harvey weinstein is out. the media mogul fired from the company he co-founded as sexual harassment allegations grow. it's monday, october 9th, 2017 and "worldwide exchange" begins right now. ♪ ♪
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and good morning and welcome to "worldwide exchange." i'm seema mody in for sara eisen. >> i'm dominic chu futures are shaping up to be a little bit more on the mixed side of things right now we are seeing the s&p opening up just about flat if current conditions hold. the dow jones off by 4 points and the nasdaq up by 7 overall if you take a look at the equity picture, we are still hovering near those record highs. as a reminder the u.s. bond market is closed today in observance of the columbus holiday season. we will have a deeper dive first, to some breaking news out of washington overnight. president trump calling on congress to fund the border wall as part of any deal for the so-called d.r.e.a.m.ers. nbc's tracie potts live in washington with more on that good morning, tracie. >> hey, seema. good morning, everybody. it did happen within a matter of hours.
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not too long ago president trump laying out his immigration agenda for congress already overnight. democrats are saying this won't work >> presidential proclamation -- >> reporter: overnight, new demands from president trump on immigration echoing what he said last month. >> the wall will be funded otherwise we're not doing anything. >> reporter: in exchange for allowing 800,000 d.r.e.a.m.ers, young immigrants to stay here legally, mr. trump is insisting congress must pay for and finish building his wall with mexico. it's the exact opposite of what democrats say the president agreed to. >> any additional border security measures excluding the wall. >> reporter: the president's immigration priorities delivered last night include quickly deporting children who cross the border without their parents, withholding federal funds from sanctuary cities, stopping catch and release policies and limiting green cards to spouses and minor children that issue is tied up in the courts attorney general jeff sessions says this plan will work
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democrats call it beyond unreasonable, insincere insisting the wall was explicitly left out of negotiations. >> this is our threshold protecting the d.r.e.a.m.ers. >> reporter: all of that follows a weekend twitter war between the president and tennessee senator bob corker the president claims corker, quote, didn't r didn't have the guts to run for re-election after begging for his help corker called the white house an adult day care center. now that back and forth could have some real implications here on capitol hill because corker is in charge of the foreign relations committee, the committee that would have to deal with getting rid of the iran nuclear deal which the president has talked about so often. >> tracie, there's an intersection of sports and politics we had vice president mike pence getting some attention for walking out of the game after
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the players took a knee. is there anymore fallout >> reporter: the president has made it clear that he told the vice president beforehand, if they kneel, you should leave we saw the vice president with his hand over his heart during the national anthem, and he left right after that. >> tracie, we'll get to more on that thank you very much for that update after that. turning to the global market setup. a fairly quiet start china services sector growing at its slowest pace in 21 months in september. also point out chinese markets were closed last week for golden week the hang seng, as you can see, closing down by half percent and the shanghai composite higher by around 3/4 of a percent. let's switch to early trade in europe where we're looking at the german dax at a new all-time high
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sta stat oil, they found an area containing up to 130 million barrels of oil we're keeping a close eye on spain. stocks rebounding amidst this standoff taking place between madrid and barcelona. >> seema, as for the broader markets, the macro picture, let's check out what's happening with oil oil prices came out rough. wti crude below 50 bucks a barrel 49.had a t 49.45 the last trade there ice brent, off by a quarter of one percent as well. as for gold prices, check out what's happening we see perhaps some tensions politically speaking all over the world. however, gold prices, yes, they are catching it. 12.8440 the last trade there the currency side of things all mingle together. the dollar versus some commodities. with the euro, 1.1734. the last trade there 1.1261 the last trade.
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for at least sterling. that's helping to prop up some of those prices especially for gold. >> the currency falling hard after the u.s. embassy in ankara suspended all nonimmigrant visa services it's a move that turkey immediately watched. we saw assets around the world were stunned in terms of the turkish stock market the turkish lira lower by 2.6% the lows of the session was down as much as 7%. turning to today's wall street agenda, there are no reports today over the bond market and federal government closed for columbus day. on wednesday we do get minutes from last month's fed meeting. thursday look for jobless claims and the producer price index on friday it's retail sales, ppi and consumer sentiment earnings season officially kicking off.
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bank of america reports on friday we'll hear from blackrock and delta airlines this week. >> i guess you could say earnings season starts with jpmorgan >> exactly. >> new overnight, media mogul harvey weinstein has been fired from the company he co-founded amid sexual harassment allegations. landon dowdy joins us with all of the details and the latest. landon, this is a big deal when his name is on the door, right >> dom, you are exactly right. the weinstein company's board revealing that the co-founder's employment has been terminated effective immediately. this comes three days after "the new york times" published a bombshell report detailing decades of sexual harassment allegations against weinstein. on friday weinstein was placed on indefinite leave of absence after the firm said they would investigate the long term is there. weinstein is said to own 20% of
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the company. a source familiar with the matter says the members of the weinstein company's board have already discussed changing the corporate name dom, back over to you. >> yeah. it's the front page of the post this morning cut. brother helps sex creep harvey >> that's the cover story. >> very much so. one where we're going to see -- >> developing story. >> and with the settlement -- >> so far what's interesting is that the community still seems to be supportive they said the talent agencies, the entertainment companies will still work with the weinstein company going forward. >> landon dowdy, thank you so much some stocks to watch today we have hsbc finding the name and the company insider to be the next ceo the times of london says hsbc wants john flint to take over from stewart gulliver. honeywell reportedly plans to spin off some noncore assets
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this would be the first major move since honey well's new ceo took over in april reuter's say they will resist a call by dan lowe to spin off the aerospace division. barron's is positive on walmart saying shares could rise 15% or more. they jump start profit and sales growth walmart announcing today it will launch mobile express returns at stores for items bought online seema? >> in the pharma space, astrazeneca says it's given its drug to treat a form of lung cancer a break through therapy designation. this move helps speed the approval process for the drug. shares of astrazeneca basically flat on the day. shares of airbus lower right now. the lowest performing stock in france's equity index. they're setting comments from ceo enders he warned of turbulent times
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ahe ahead. general electric announcing a slew of corporate changes late friday the company is promoting jamie miller to cfo replacing john borenstein who will leave ge he is head of the transportation business the company says two vice chair men are retiring. still ahead here on "worldwide exchange. oil operations in the gulf of mexico slowly coming back online following hurricane nate the latest impact on the energy market still ahead crisis in catalonia. they take to the streets in spain calling for unity. we are live on the ground in rconwh "rlide exchange" returns. whuuuuuat?rtgage offer from the bank today. you never just get one offer. go to lendingtree.com and shop multiple loan offers for free!
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"worldwide exchang exchange". u.s. equity futures set up for today's trade. as you can see, we are higher across the board but albeit fractionally nasdaq up 9 points dow jones higher by 1 point. oil certainly got a lot of attention last week. wti settling down 4.6% for the first negative week in five and the worst week since may 5th you can see wti crude trading. ice brent, the international gauge trading at 55.42, lower by .4 of a percent let's stick with the oil trade. energy operations in the gulf of
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mexico are coming back online following hurricane nate the storm which made landfall over the weekend caught off more than 90% of oil output from the gulf that output is expected to quickly come back online with nate a tropical depression outside of the region. let's bring in john kilduf at again capital. there are a lot of dynamics driving the oil trade. it's been front and center since the beginning of september is that really the driving force behind oil prices? it was fleeting, it seems like, given the fallout we saw last week >> yeah, it was fleeting we're starting to sort out the inventory situation. crude oil dropped last week. we saw refined products, gasoline in particular come back online and rise. big question now we're watching for the markets, i guess there are two, distill late or diesel fuel inventories terrific global demand for the product over the past pretty much this year things have gotten a little tight there.
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that's the first time we can use tight or tightness in referring to any energy commodity in quite some time. that is a source of support for prices at the moment this is a time of year though when that demand drops off and that's why you saw the prices start to come down last week only to get supported by the hurricane nate here. the big thing to watch though for me is just the middle east as always is a cauldron like never before to me in a way. i'm surprised the situation with turkey and the u.s. not getting really more attention or more reaction in the broader markets, but also, too, you had saudi king meet with president putin last week. >> right i was going to ask you about that that was an historic meeting the first time the saudi king had gone to moscow and in a way it seemed like the leaders had reaffirmed their commitment to global oil production to scale back of course, as part of that opec agreement, oil prices moved higher on thursday but on friday they gave back. >> sort of a new found friendship there
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also, too, you have a number of interests against the cukurdist people you have turkey, iran, saudi arabia, russians, even the u.s. to a degree clamping down or pushing down against that movement where there's a significant amount of oil involved as well obviously we all just went through moving the islamic state out of that same region. the middle east is really a bubbling cauldron at the moment that needs to be watched, but the bottom line is that everybody is focused on one thing at the same time, which is pushing out more, not less oil. >> we talked about the idea that perhaps the hurricanes, as tragic as they were, provided temporary moves and factors influencing oil. what is the next big catalyst and what are the targets you had specifically with wti given that we have supply/demand being worked out and other fundamental factors being played out. >> the fundamentals going
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forward here, assuming there's no more storms of any significance, should help to push prices lower. we peaked a week ago thursday. we hit almost $53 a barrel, $52.86 on the chart. that was an outside day with a lower close. technically that's a nightmare for the bulls and key reversal day. we've been coming down since we've broken below $50 i see oil prices going back down to $42 a barrel here over the course of the next several weeks before we see better what the setup is for next year and demand overall. some of those analysts in early january, john, were calling for mid 60s when looking at oil is that just not a target that can be reached at this point >> it's going to be very difficult. you have to have a string of hurricanes you have to have a supply disruption event the economy has come through globally to support prices from a demand perspective for the first time in a while, but the production situation is just more oil, not less more refined product, not less.
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>> lower for longer. john kilduff, thank you for your time. >> thank you so much, john. coming up on the show, it's being called the worst political crisis to hit spain in decades thousands of people spilling into the streets of catalonia calling for unity. we are live in barcelona. here's today's national weather forecast from nbc's bonnie schneider. >> good morning, seema and don we are looking at nate bringing about travel troubles to parts of the northeast we may see some airport delays due to rain. and in denver it's not rain we're talking about, it's snow temperatures are cold enough in colorado that we're looking at a 30 degree temperature drop if your business travel takes you to denver, i would say pack for a winter experience. just 32 degrees in one day of a change snow is in the forecast as well. a winter storm warning with temperatures that will be cold enough for it. watch out for power outages as well we could see 3 to 6 inches of snow so depending on where you're
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headed we're looking at winter like cold across much of the west and summer warm with temperatures in the 90s in texas. that's your business travelers forecast more "worldwide exchange" when we come back
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point and the nasdaq up by 6 so, again, very stable markets overall. as for what's happening in europe, we are seeing a bit of a mixed picture there overall. we have some action here in germany, flat now. capped in france flat as well. the ftse off by 1% the ibex up by almost a percent. all eyes looking at the catalonia refrp referendum for independence >> thousands of people spilled into the streets protesting the vote for independence. we are live in barcelona, willem. >> reporter: there are 353,000 people marching in favor of unity here in barcelona. some people involved in organizing said it was more like 900,000. huge numbers the big question is what do the catalan authorities do next? what is the next move? we had a chance at the end of
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the march to talk to the catalan authorities. we asked him what his message was, how concerned was he? here's what he had to say. >> we have been trying to have that dialogue to engage ourselves to that dialogue with the spanish government unfortunately we are along that table. in order to have it you need a counterpart. so far we had that you need two to tangle anything that would help our spanish counterpart i think is going to be for us absolutely acknowledged >> reporter: and this is really what we've heard repeatedly from catalan leaders. since 2012 they've sought negotiations with madrid, the spanish government with increased fiscal independence. they feel they've never had time to talk to the government. he says he will take any
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possible legal means to prevent any declaration of independence. businesses not big fans of uncertainty. they are some of them moving out of the area. one of the largest banks in spain and another one are moving their legal headquarters out of catalonia. more than 7,000 foreign companies with a presence here in catalonia looking at the future >> willem, it's dom. you put up some of the comments from the catalon foreign minister what happens with the prime minister of spain, rajoy what happens with him and the spanish government dealing with the catalonia situation? >> reporter: there was going to be a meeting of the catalan assembly he was going to talk to the assembly he might declare independence today. the spanish constitutional court has suspended that he will talk to the assembly
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tomorrow afternoon rajoy said he would do whatever it took within legal means that could include suspending catalonia's autonomy, dissolving the parliament and calling for fresh local elections. >> we saw that, willem france is saying they will not recognize a unilateral catalan declaration. what has the response been not just from france but other european countries >> reporter: well, we've seen that across the continent, including the european commission they said this is an internal spanish matter to deal with. the foreign spokesperson for catalonia, he refused to answer that question whether he had had discussions. of course, the catalan is very pro eu they would like to stay inside the european union that's what's frightening businesses there is an independence declaration. it will automatically mean these companies, these organizations whether they're banks or anything else will be outside the eurozone
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they won't have access to ecb funding. that's what's making a lot of them think about moving. >> they're saying this is a much bigger deal than the brexit. willem is live with the latest on catalonia. a roundup of global market picture and of course this morning's top stories. plus, breaking news out of washington overnight the president threatening to derail a deal for so-called d.r.e.a.m.ers if congress does not fund the border wall. the latest details when "worldwide exchange" retnsur my digestive system used to make me feel sluggish
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a new week on wall street. investors await the kickoff of earnings season and closely eye the crisis in catalonia. we're sending the trading week straight ahead. the trump administration releasing new demands on immigration that threaten to derail that so-called d.r.e.a.m.ers deal the latest coming up. plus, hard time? apparently not even the slammer can silence martin skrel hkreli you're watching "worldwide exchange" on cnbc. i'm seema modi in for sara
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eisen. >> breaking out the dance moves. i love it. >> i am. >> let's get you set up for the trade. u.s. futures pointing to an open, a modest open with the dow lower by 2 points. s&p 500 higher fractionally. the nasdaq, which did close at a record high on friday and the tech sector, i would point out, also closing at a record high is higher right here on monday by around 7 points. energy was a big loser on friday losing about 4%. telecom was down about 2%. we'll see what happens this week we have another key energy meeting between saudi arabia and russia to replace on wednesday the bond market is here on wednesday. higher yields have been the story over the last two weeks. >> turning to the global markets, this is a fairly higher session. we had some data out of china. business activity in china's services sector grew at its slowest pace in 21 months in september. you can see here shanghai composite up 3.1% to close here.
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the hang seng and hong kong off and the australia asx 200 off by half a percent we're resuming normal operations there. as for the european session so far, just like our futures, it's relatively mixed and quiet the dax and germany and the cac in frans and the fatse up everybody eyes what's happening with the catalonia independence situation, seema. >> we'll keep an eye on the uk as well. the fifth round of brexit talks between the uk and the european union is set to commence in brussels today right now let's take a look at oil and see where it is trading. as i said, wt if crude closing down 4% on friday on these renewed tensions between saudi arabia and russia. here on monday we're higher for wti crude, 49.34 ice brent crude down by half a
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percent. natural gas is rounding up fractionally on the day. take a look at gold. we're higher by around $6 last time i checked we're higher by $9 at 1,284. if we take a look at the dollar board you'll see that the dollar has been mostly weaker throughout the day here we go the euro stronger against the u.s. dollar at 1.17 and against the yen it is weaker as i just said let's check out what's happening with the turkish lira. the currency falling hard after the u.s. embassy and ankara suspending all u.s. visas. the turkish lira was down. right now lower than 2 1/2%. it's getting a hit because of the fed interest rate issues all of the currencies do as well >> emerging marked stocks have been a bright spot so far in 2017 one of the best performing asset
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classes. >> turning to this wall street agenda for the week, there are no reports today with the bond market and federal government closed for columbus day, but on wednesday we're going to get the minutes from last month's fed meeting. thursday look for jobless claims in the producer price index. on friday its retail sales, the consumer price index cpi and consumer sentiment as well earnings season officially kicks off this week with results from the major banks. you have jpmorgan and citigroup reporting on thursday and bank of america and wells fargo report on friday we'll hear from black rock and nine earnings reports slated for this jeek bob dole, senior assets manager what do you think? can earnings season help markets move even higher than we are trading at right now >> they certainly have been the catalyst for the market so far this year. i don't see why that should
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stop earnings should be reasonably good along with economic statistics you've just mentioned. we've got that, of course, hurricane effect that we saw in the jobs report last friday. that could affect some earnings. it could be the right excuse when companies don't make it it could be a convenient excuse if companies don't, but the underlying trend for business is pretty good. you saw it in the isms last week. >> bob, it's dom if we talk about the markets at record highs right now, there is no doubt that the path of least resistance has been to the up side, has been for quite some time, but are there things that you look out for as potential signs that we may be due for that long awaited correction or pull back that we just don't ever seem to get >> you're right. the market is at all time high of course, earnings are as well so they go hand in hand. that doesn't mean we won't get pull backs my view is corrections are nonpredictable and random, but after the fact we always know why. look, catalysts could be maybe
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earnings aren't as good as we think. maybe some adults leave the trump administration maybe inflation as we saw a hint of in the friday employment report in wages begins to move higher there are lots of things that could be, if you will, the fly in the ointment that cause a pull back. as long as earnings are doing okay, which they are, the path of least resistance is higher. >> bob, one more thing here. if we talk about this idea that the sectors that have been leading the way higher have been technology, some of the financials have been doing pretty well so far, are there places in the marketplace that still represent pockets of opportunity, stuff that maybe isn't as well-valued as other parts of the overall stock market >> well, i would stick with the areas that are doing best because of earnings. we're seeing improvement in financials selected tech i don't think is a blanket. health care still has good tail wind in terms of earnings and valuations are not horribly stretched.
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i guess underneath your question is there a lagging area? telecommunication offers some companies with some big, fat yields fundamentals are mixed the stocks relative to the rest of the market are pretty cheap. >> bob, we've seen this increasingly strained relation 147 between turkey and the united states. this new news of this travel ban in terms of the visas between the two countries. how do you think investors are going to react to this news? >> it's never good news when you start fighting, even if it's with words i didn't put on my list, i should have, things that worry me, the geopolitical environment. iran, north korea, the list goes on this recent development with turkey is not good news. turkey's, of course, been a neutral/friend from time to time we don't need a barrier there. >> two nato allies of course when we're talking about the united states and turkey bob, we'll leave the conversation there thank you for joining us this morning. bob doll
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>> have a good week. >> you as well. news out of washington this morning. president trump laying out his demands for immigration reform, and topping the list is the border wall. the white house is calling for full funding and complete construction of the wall it also wants to crack down on sanctuary cities and move to a merit based immigration system in a letter to congress the administration said these priorities must be reflected in any bill that addresses the children of undocumented immigrants or the so called d.r.e.a.m.ers. democrats are firing back. they released a joint statement saying we were open to reasonable border security measures but this list goes so far beyond what is reasonable. this fails to have any attempt at compromise. schumer and pelosi thought they had a droo.r.e.a.m.e.r. deal.
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dove is dropping the latest ad campaign. the company posted a three second gif, whatever you want to call it, to facebook showing a black woman removing her brown shirt to reveal a white woman in a white shirt. now many were outraged by the ad calling it racist. the company has since apologized saying it's committed to representing the beauty of dye voers city adding that it missed the mark in terms of its overall message. so this is something where you can -- a lot of people are becoming much more sensitive, i guess. >> yeah. >> to what's happening with advertising campaigns. it just goes to show that marketing managers and ad spend managers have to be that much more vigilant about the many layers of the onion that have to go towards some of these. >> it's controversial to say the least especially when you see that gif you have social media, that instant reaction you know right away. >> it can spread so quickly. >> exactly speaking of social media,
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snl has also come under criticism for how it handled the harvey weinstein controversy the late night show did not mention the sexual harassment allegations that ultimately got the hollywood mogul fired from the company he co-founded. they said the snl dress rehearsal included weinstein jokes but they were dropped because they fell flat he left it out of the show because, quote, it's a new york thing. that prompted donald trump jr. to tweet, out of curiosity, where is @realdonaldtrump from seems like there could be more to that pass than this nonsense. >> it is a fairly controversial topic. >> there's always next saturday. >> there is always next saturday. mcdonald's is feeling the heat after its szechuan sauce disappointed fans. it debuted back in 1998 when the
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disney film "mulan" was released mcdonald's only brought back the sau sauce at select locations and it severely underestimated the statement for it long lines formed all around the country with the police being called to at least one location to deal with angry crowds. mcdonald's responding to the tons of social media scrutiny. we hear you and we're sorry not everyone could get super limited szechuan this winter it will bring it back for a longer period of time. >> i want to try it, too. >> mcdonald's version of general tso's chicken. the farm ma bro penned a letter to a friend detailing his time behind bars as he awaits his skensing shkreli says, quote, things are not that awful here.
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he's reading "shooting hoops" and playing chess. he's adding, i'm teaching these prisoners new things and hopefully ways to change their lives. his cell mate snores and his bed is cramped and uncomfortable. >> those are probably some of the worries. >> yes if a martin shkreli and sports the new york yankees had their backs against the wall facing elimination in the american league division series versus the cleveland indians. the game was scoreless going into the seventh inning when greg bird connected for a long home run into the second deck at yankees stadium. the yankees held on to win 1-0 they had to gain four against the indians. it's a big deal here red sox facing elimination the yankees facing elimination it may not be great for the a.l. east but they got some love. >> big win for new york. >> boston and new york move on.
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from the baseball diamond to the football field the kansas city chiefs are the lone unbeaten team in the nfl. they faced the houston texans last night in what would be an offensive shootout houston punted the ball to kansas city's tyreek hill. he worked his way to the sideline, went down the field 82 yards for the touchdown to increase the chiefs lead, 39-20. they hold on to win 34- -- >> i was so happy. tyreek hill is on my fan at that see league. >> a good one for them leak to see that. >> of course. coming up, why a cat a lan break away would be bad. >> take a look at how trade is fairing in europe. another record high for germany on the back of positive data just looking below that, down about 2 tenths of a percent.
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welcome back to "worldwide exchange." i'm dominic chu. time for the must reads. stories in the op eds catching our attention. my pick is in the u.s.a. todd, misplaced priorities behind pence's performance at the colts game he's writing, quote, so like a
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terrell owens celebration, pence's walkout was core rio graphed and rehearsed. it was also a distraction from what should be the administration's view. the nuclear standoff with north korea still simmers yet mike pence took time to travel at taxpayer expense at indy solely to score a win for president trump. come on, get your priorities straight it is on the front page now of the wall street journal. this message that's getting out there. tim swarens who is the op ed editor says people should always stand for the national anthem, but this is really becoming a little bit more of a political stump than anything else the taxpayer issue, the cost of doing so is a little bit more than -- >> especially when there are so many other things happening around the world, other legislative priorities surprising that he took this
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level of effort to go out there for that. my pick is in the financial times. it's titled a catalan break away would be worse than the brexit he says exiting the eu and currency union at the same time is an economic suicide mission he says what makes this catalan independence much worse than brexit is that this would force an immediate exit out of not just the european union but the eurozone as well which would be unprecedented and would potentially have implications for not just the equity market but the currency market as well. it's a good read as to how this cat a lan independence movement is and the context behind this huge standoff between madrid and barcelona. >> it's been a while now but a lot of analysts who cover the european side of things said this could be one of the major catalysts. we felt that same way with brexit we haven't seen anything major happening. >> we're approaching the top of
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the hour and that means the team at "squawk box" is getting ready. this is now becky quick's time to join us from new york with a round of what's coming up ahead on "squawk box." >> good morning, dom, good morning, seema a bank holiday bond markets are closed because of columbus day but we have plenty of action taking place here guy adami is joining us as our guest host from 6 cl:00 to 7:00 a.m. he's walking up right now. we also have a guest host from 7 to 9:00 this morning talking about all of the issues that you guys have been talking about today. everything that's been happening politically with washington, with the tax reform bill that's out there floating around. we've got grover norquist, jared burn steen and alex skrill we figure if the three of them can come up with any ideas that they can all agree on, maybe that's something congress can agree on. we're talking sports today we have the president of the milwaukee bucs, peter fagan
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talking to us about what he's seeing the take a knee situation and what they've been seeing in the nba regard that go situation procter & gamble, that big vote coming up on tuesday we're going to be counting you down to the final hours of what to expect with the biggest proxy battle that's ever taken place a lot of things happening. see you in a few minutes. >> speaking of sports, you have to ask mohamed el erian about his new york jets. they have three wins now. >> yesterday they kicked the longest field goal in jets history. >> it was -- >> 59? 57. >> 57 yards the longest in history. >> a lot to talk about becky quick, thank you so much we'll all be tuning in for "squawk box." >> up next on this show, "worldwide exchange", we're setting you up for the big trinweadg ek ahead when "worldwide exchange" returns
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we've got some breaking news the nobel prize for economics has been awarded to richard phaler he's from the university of chicago. i have his book, "misbehaving. richard thaler he talked about what drove behavioral economics. it was a cnbc book he said, dom, keep misbehaving he signed it richard that i will ler. he -- thaler. >> maybe it will be worth something. >> what did he say during that cnbc pro interview >> he talked about what drove a lot of it, what his feelings were behind it what drives the human decision it's a fascinating read with
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regard to how people and those softer elements and how -- >> sure. it's an important part of the story. it's not fundamentals one can argue. there are things in focus as well >> absolutely. speaking of economics, we have an economist with us we're talking about anthony chan he's a chief economist over at chase. richard thaler, a guy you know about. is it interesting for you to know about how those forces drive economic decision making >> there's no question that behavioral economics play a role not only in the equity market but within the overall structure of the economy it's been a challenge to see that. >> what would you make of where stocks are trading at right now, anthony? record highs but we did see the dow move higher on friday. >> i think the equity market is anticipating something better is coming
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third quarter will be weak the consensus is 2.8% for s&p 500 earnings we know the earnings get beat anywhere from 3 to 5%. i would not be surprised if by the end of the third quarter we're actually looking at 7% growth for the third quarter obviously the insurance industry because of all of the hurricanes are mostly responsible for the short fall, but the rest of the centers -- >> a lot of these companies have been raising estimates and still you think there is the opportunity to beat analyst estimates? >> i do. we still satisfy the dollar is weak that's a good tail wind for s&p 500 earnings when we see the dxy. the value of the u.s. dollar the euro is still pretty strong again the dollar. >> now as a financial economist, you're kind of blending the worlds of markets and economics together there are a lot of things you look at with regard to how things could look down the line. as you look at the tea leaves right now, what is the trajectory of the markets
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overall? we talked to bob earlier the path of least resistance is to the up side what exactly is your thought on that is the path of least resistance still to the up side of stock? if not, what takes stocks down >> i think right now the path of least resistance is clearly up now i realize a lot of people are going to make a big deal that average earnings went up .5 of 1%. this boosted wages because if you lose a lot of jobs at the low wage sector -- but you had upward revisions which were not contaminated the trend was higher you saw the auto sales, dom. 18.5 million that's replacement because of the hurricanes that's going to con treb bought to the end of the week
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>> i have no doubt that we're going to be looking at a headline number of consumers that will pierce through the 2% number we know the federal government targets that that gives us some idea of what the personal consumption is. >> does the fed have a green light? are we still on that path for interest rate raises >> dom, i feel much more confident and, seema, i feel much more confident that the federal government has a green light in december given the wage number and the inflation number. the hustle has an additional 906,000 jobs that's obviously stronger than the establishment. >> anthony chan. thank you for joining us we have a minute left. we want to highlight a few things to watch today. i guess that will be the nobel peace laureate richard thaler i'm going to be reading this. >> the turkish lira i'll be keeping an eye on between the
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united states and turkey. >> congratulations, richard thaler "squawk box" is coming up next
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good morning earnings season, really, kicks off this morning it just ended, didn't it president trump calls on congress to fund a border wall as part of the deal for the so-called dreamers we have the latest from washington plus, harvey weinstein is out. the media mogul fired from the company he co-founded as sexual harassment allegations grow. it's monday, october 9th, 2017, and "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" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with joe keern nin. andrew ross sorkin is off. guy adami is with us. >> great to be back. >> by the way, happy holiday everybody. columbus day today. >> right, joe? >> yes yes, it is yes, it is not afraid to say it. >> no. columbus day bond markets are closed, but the stock market's open. in fact, let's take a look at the u.s. equity markets this morning. you will see it looks like things are slightly positive pretty close to flat line. dow futures up by just over 3 points s&p futures up the nasdaq up by 7 1/2 this all comes after another positive week. the s&p 500 and the dow closed slightly lower on friday again, both of those avera

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