tv Worldwide Exchange CNBC July 12, 2019 5:00am-6:00am EDT
>> it's 5:00 a.m. at cnbc global headquaters and 4:00 a.m. in new orleans. here is your 5 at 5. our top story back to the gulf where tropical storm barry is bearing down on the bayou. we're live next. refiners in the gulf slash production more than 53% of the region's output is now off line as barry barrels closer to the coast and a record setting week on wall street about to get sweeter because futures pointing toward records this morning after the dow closed above 27,000 for the first time ever. bashing bitcoin, president trump
taking to twitter to slam the currency and facebook's libra in the process and the president is not alone. the billionaire investor mark cuban citing with trump calling facebook's libra a big mistake it's friday july 12th and worldwide exchange begins right now. >> this is a live shot right here on your screen. tropical storm barry hovering off the coast of new orleans the city has already seen record rainfall in recent weeks and the storm could make landfall as soon as saturday we'll have the latest coming up. this is a serious threat but first let's take a look at what's going on in the markets 27,000 and beyond. get your rally caps a record rally underway on wall street. the dow closing above that milestone 27,000 for the first
time ever. taking a look at futures right now, dow jones is poised to open by 85 points higher and the nasdaq indicating a higher open by 23 points take a look at the bond market of course we watch this very closely also as a proxy for what the market is thinking about the federal reserve. we saw some movement here. the yield on the ten year has moved higher let's take a check on what happened around the world, perhaps while you were sleeping if you're joining us here early in the united states in asia, green arrows across the board. you can see the shanghai composite up south korea higher as well as japan too. let's take a look at the action in europe. at least at the early going. we have some hours left to go there but right now green arrows across the board higher by .5% and you can see that italy is higher by .2% but
that had been earlier in the week when you were looking at the country by country market. joining me now, the senior investment strategist at b and p asset management we're getting ready to kick off earnings here in the united states early next week and there's been some concern about what's going to happen and what the guidance may tell us despite the fact that it's hitting record highs what's the disconnect. >> it's exactly that the fundamental disconnect is what you have potentially between the bond market and equity market. if you have treasury yields around 2%. a bit below. some people interpret that as a signal of a more significant slow down in u.s. economic growth which is incompatible with the s&p about 3,000 so that's the fundamental question we have to ask ourselves. our view is that low treasury yields is more a reflection of
the new policy of the fed to be cutting rates as opposed to hiking them. so we don't see it as a recession signal but there's a question of which of those is actually right and hopefully we'll get clarification on that as earnings season starts to come in. >> you mention bond yields right now. ten year above 2% sitting at 2.136 or so. is that a sign that you think the dollar may continue to strengthen from here what does that mean for some of the international companies we're getting ready to hear from it's been recently stron against the euro that's something that we need to keep in the back of our minds. we do have strong domestic demand within the u.s. and that should help domestic oriented companies but sales are not only important for a lot of u.s.
companies, that's where a lot of the growth is coming from. so you have to wonder what the impact that's going to have. >> it was so interesting when we first started hearing policy makers talk about the idea of different tariffs. many companies didn't know what to do with that. some were afraid to touch the issue at all but now it seems like more and more corporate executives are blaming everything on that they're saying look we can't plan for business investment if we don't know what's going to happen with the cost of doing business because of these tariffs. is that sort of something prudent for companies to do to be honest about the uncertainty or does it give them some wiggle room to put up some results that are less than stellar? >> probably both you always look for the most convenient excuse if you're earnings are going to disappoint but it's a valid consideration not only as we try to see what the tariffs with china are likely to do with sales for u.s.
companies but we have the ever evolving threat of potential tariffs against europe could it be france could it be germany? something around russia. a never changing palate of potential threats which is as you point out, makes it quite difficult for ceos to plan for investment. >> the fed seems to be suggesting here at least what we heard from j. powell the last several days on capitol hill that we are going to get this interest rate cut. is that something that almost gives us a little bit too much more security. >> i agree it's more likely that we do get 25 basis points now given that growth or the payrolls figure was etter.
that's going to be important it focuses more on low inflation as a justification for cutting rates well that's actually quite benign so either way we do get the 25 basis point cut the implications for the market are going to depend much more on the language. >> a lot of cross currents the fed is watching and we are too thank you for being here and helping us watch those today >> well, let the bitcoin bashing begin. here we go. >> a lot of people are going to have reaction to this. >> it's a big one. >> it's a big one.
the president took to twitter in a series of posts to say he's not a fan of bitcoin and other cryptocurrencies he says they're not money and their value is highly volatile and based on thin air and they can result in unlawful behavior. also taking aim at facebook's libra saying it will have little standing or depend bability. and suggesting that they may need a banking charter and be subject to regulation. >> i'm not a big fan of what they're doing there. i think it's a big mistake not so much because of what will happen here in the united states but what will happen globally. there's going to be some spot in some african country that is upset that they can't control their currency anymore
that's where real problems start to happen. i think they're way ahead on that but it's only in the talking stage right now so we'll see what happens. >> president trump also tweeting dependable and reliable dollar should be the only real currency in the usa calling it the most dominant currency worldwide saying it will always stay that way. bitcoin is up 2% this morning. it's unclear why the president took last night to speak out on bitcoin but yesterday they did have the white house social media summit so maybe his comments toward facebook's libra not such a surprise but folks that are bullish on bitcoin are very bullish on bitcoin and very passionate about it so i'm sure we'll hear a lot about it. >> it's a divisive issue and the folks that speak out against it also perhaps, they don't understand it that well. none of us really understand it super well is it an asset class or currency the president is trying to point
it as a currency at least as far as saying it shouldn't be a currency and it's interesting that president trump talks about the dollar so much many president don't so perhaps he thinks it is a threat to the almighty dollar. it's something that we'll discuss for weeks and years to come i got to start understanding bitcoin. boeing 737 jet program manager is retiring after nearly a year on the job and 37 34 years with the company. this as boeing continues to deal with the fall out of the jet which has been grounded since march. boeing is working to get the planes recertified and ready to fly. shares are down nearly 5% since the 737 max was grounded by the faa back on march 13th relatively flat at this point in the morning. when we come back, we're tracking tropical storm barry as
it barrels toward the gulf coast and refiners brace for the worst. the latest is coming up next then this morning's biggest loser, the stock set to open down more than 16% we'll reveal the name to watch we're days away from amazon's latest prime day the fiskfth. we tell you what investors should be watching a very by urusho still ahead when worldwide exchange returns. , and that for me is what teamwork is all about. you can't do everything yourself. you need someone to guide you and help you make those tough decisions, that's morgan stanley. they're industry leaders, but the most important thing is they want to do it the right way. i'm really excited to be part of the morgan stanley team. i'm justin rose. we are morgan stanley.
welcome back we're following a developing story out of the gulf coast. tropical storm barry barrelling toward new orleans as the city braces for record flooding bill karins has the latest. >> good friday morning to you. happy to report that barry has not gotten much better organized. it's still a very meandering storm that's disorganized. we're not going to see this storm rapidly intensifying or anything else like this but what we'll be watching is the storm slowly drifting toward areas in louisiana. that slow drift is going to allow pretty epic rainfall totals and that's our biggest fear with the storm right now. winds are only 50 miles per hour with this path slowly heading up toward central louisiana it's going to be between now and saturday evening just to get into central louisiana so the slow moving will put the
heavy rain in the eastern portion of the storm and we expect epic rainfall totals toward new orleans, baton rouge and right up the mississippi river basin as the storm winds itself down over the weekend so you don't need a hurricane to get crazy rainfall totals. isolated amounts up to 20 inches widespread flash flooding and river flooding and we'll still watch new orleans slowly as of now it's supposed to stay below the levies but just barely by a foot or so. that will be a story that we're watching as we go throughout saturday. >> just a foot below that's something to watch. oil producers in the gulf preparing for the worst as barry hovers just off the coast slashing output by more than 1 million barrels per say. that's about 53% of the region's production watching energy prices right now, you can see wti and brent crude are higher by about .8% just below $61 barrel but also checking in at prices at the pump
today you are seeing $2.78 per gallon as an average that's up 2 cents for yesterday and up 6 cents from a month ago. those prices can change rapidly and we'll continue to watch that still on tech, the fed to open down some 17% and later the record rally rolls on. stocks set to open at fresh records but is there still room to buy worldwide exchange is back right after this you should be mad at forced camaraderie. and you should be mad at tech that makes things worse. but you're not mad, because you have e*trade, who's tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. don't get mad. get e*trade's simplified technical analysis.
a very cloudy morning there. can't even see the top of the empire state building in new york let's get a check on the stocks today shares of illumina are sliding after they cut revenue outlook for the second quarter blaming problems in it's direct to consumer business and lower sales of some products it's reducing it's revenue forecast for the year. look at that, shares down 10% for three months 16% today. daimler issuing a product warning. it expects to swing to a loss in the second quarter citing higher costs relating to the global recall of takata air bags shares down by more than a percent at this point but 18% in three months and shareholders will vote on the planned $38 billion share in august. it's expected shareholders will
approve that deal but the price angered several investors saying carl icahn that called for a special board meeting. straight ahead, anyone listening? google claimed defense after new outrage services over it's google home assistant. you'll want to hear this story then a dramatic drug bust. incredible video you havtoe see. this is the teaser here. worldwide exchange is back after this dear tech, let's talk. we have a pretty good relationship. you've done a lot of good for the world. but i feel like you have the potential to do so much more. can we build ai without bias?
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i'll pass. . >> welcome back to worldwide exchange another quick check on the futures. did dow jones higher by 87%. s&p 500 higher by 8.5 and we saw new record closes for the dow and the s&p on thursday. well in political news president trump is hitting the road today. he's headed to the midwest in milwaukee and cleveland. sarah is live in washington with more good morning. >> good morning, courtney. the president calling off his citizenship question fight that saw the census turned into a political weapon >> president trump backing off his bid to put a citizenship question on the 2020 census. >> the case is already in three federal district courts that
have been, to be totally honest, extremely unfriendly to us. >> instead issuing aing an exece order to comply records from existing databases. >> knowing this is vital to formulating sound public policy, we will leave no stone unturned. >> this as the president prepares for mass deportation rates this weekend in at least ten major u.s. cities prompting o o outrage across the country several arrested in buffalo. advocates speaking out in chicago. in d.c., republicans supportive. >> people. >> gone through the process and lost their case to me is not cruel, it's reinforcing the rule of law. >> democrats furious. >> it means moms, dads, families being torn apart it's disgusting. >> it has nothing to do with the
security and safety of the united states. >> new moves from the president prompting new ripples of fear across immigrant communities. >> and the raids will reportedly target some 2,000 people previously ordered deported but some immigrants that just happened to be at the scene could be included as well. courtney. >> thank you, sarah. an interesting turn of events there for that question on that census the white house trade adviser peter navarro will be traveling with the president to the midwest today too. we'll hear from him coming up on squawk box make sure to tune in for that. let's get a check in on this morning's other headlines. francis rivera is in new york with the latest. >> good friday morning to you. breaking news overnight. r. kelly has been arrested on federal sex crime charges in both new york and chicago. the 52-year-old was taken into custody homeland security investigation agents and nypd detectives that's according to two law
enforcement officials. further details on the case are expected to be announced later today. in february police announced he was charged with multiple criminal counts of sex abuse of several underage victims in which he pleaded not guilty. r. kelly denied the allegations. >> check out this moment caught on video in north korcarolina, that's a kfc restaurant blowing up an employee smelled gas when closing up a fire marshall hasn't determined the cause of the blast. no one was injured but almost all the neighboring businesses were damaged and the chicken fried extra, extra crispy. the u.s. coast guard released dramatic video of a drug bust at sea the high speed chase took place at international waters in the eastern pacific ocean. you can see her jump on the moving sub marine and pounding on the hatch there were 5 suspected smugglingers and 70,000 pounds of cocaine the street value is $232
million. if you'd have told me that was footage from an action flick i would have believed you but it's the real deal. >> how brave is that marine? holy cow he doesn't know necessarily what's inside there. i'm sure there's guns and ammunition what a video that's the video of the day. >> 232 million >> incredible. >> it's pretty compelling. thank you so much francis. still ahead, bashing bitcoin, president trump taking aim at the cryptocurrency in a series of tweets overnight. tropical storm barry closes in on the louisiana cstoa the impact on the energy market. worldwide exchange returns .. in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. healthier brain. better life.
three major stories front and center in your money this friday oil on the move as that storm in the gulf continues to gather strength number two president trump bashing bitcoin in a series of tweets overnight these big stories ahead. it's friday july 12th and you're watching worldwide exchange on cnbc >> good morning and welcome to worldwide exchange
i'm courtney reagan. developing story out of the gulf of mexico. oil prices moving higher as tropical storm barry picks up strength preparations are on the way along the louisiana coast. let's get to wendy live for us in new orleans this morning. wendy, what is the latest? >> courtney, good morning to you. we're starting to feel the outerbands of this slow moving storm. we had rain and a lot of winds picking up as this storm creeps itself way -- crawls it's way up on to the louisiana coast and it's going to be a rain maker no matter what and it's going to bring that rain to an area that doesn't need it at all these coastal communities and new orleans proper are bracing for what could be the first hurricane of the season. they are expecting in some areas to get 20 inches of rain in the next couple of days. if it becomes a hurricane, though, it will be the first time a hurricane has made
landfall here in louisiana while the mississippi river is at flood stage. right now it's 8 feet above normal and barry could drive it to its highest level since 1950. the area was already put to the test this week when a sudden deluge of rain dropped a good 7 inches of rain in a good 1.5 hour period. that put the city on alert as barry was forming in the gulf. now they have been told to shelter in place here in new orleans and they are expecting for it to make landfall sometime tomorrow morning that's the latest here live in new orleans. courtney, back to you. >> thank you very much, wendy. please stay safe down there in new orleans. tropical storm barry is having a big impact on the energy market as well. more than 53% of gulf output is now off line as that storm, barry, approaches. let's bring in kyle cooper who is a consultant for energy group. when you look at the price of
wti, we're getting closer to 61 but not a huge spike why not if 53% of output is already off line at this point >> i think it's primarily because at the same time you're reducing a lot of demand for crude as the refineries are possibly shutdown. what's most bullish for this scenario is probably gasoline and diesel as people evacuate and move out of the storm's way and at the same time, the refineries are producing less. >> so that makes sense and then we have to think about the other geo political cross currents earlier this week we heard ability what's going on near the straight with a british oil tanker being con fronted by the ir iranian ships. how is that playing into the price of wti. >> absolutely. the geo political events had a huge factor. as long as let's not forget the stock market is at all time highs as well. there's been a very strong directional correlation between wti and equities all yearlong so all the factors play in. one other thing i'd like to
point out is that in terms of storm impact now natural gas production is actually near all time lows in the gulf of mexico and while all the old production stories have primarily been focused on the on shore production, gulf of mexico oil production is actually near all time highs so the impact across the energy complex is actually very much different in terms of how it impacts the actual physical module. >> okay. that seems to make sense right now as we are showing the storm's projected path, it doesn't look like it's getting too close to houston but that's another key area and that's where you are. if the storm path shifts, does that change anything with the oil and energy complex >> from the physical side not a lot but obviously the farther w west it goes the more demand it impacts. over 6 million residents in the houston area many of those may be fleaing
also there's a huge refining complex really all the way along the gulf coast in houston it's a huge area so a storm that came closer to houston would impact more on shore. >> we talk a lot about what happens in local areas when we have these storms hitting and there can be areas of demand spikes when you have residence denl den -- residence dents trying to fp are we seeing more of that when we're talking about gasoline >> i don't think there will be any severe physical shortages across the country and it will only be a day or two to replenish supplies but if you're in a place that does run out due to various concerns and logistics, that's a problem but i don't think they'll be widespread luckily the storm does not look to be very intense but as a reporter from new orleans was saying there is a lot of rain and louisiana is already indated
with a lot of water so they can't take a lot of extra rain and that's by far the biggest problem. >> that does bring up a good point because of the rainfall. bill karins earlier was saying it doesn't have to be a super organized storm to drop a lot of rain if new orleans gets 20 inches that's a lot you could have local areas of flooding so then what happens to the flooding areas if they're cutoff from replenishing the gasoline supplies >> that's by far the biggest concern. with all the midwest rain all summer, the mississippi river is already at high levels new orleans is not very well prepared right now to take extra rain because of all the rain that's happened previously so that is obviously alocal concern. as anybody that lives on the gulf coast knows and as you just mentioned a few days ago, new orleans got hit with 7 inches real quickly these storms actually slow moving and disorganized sometimes bring about the most rape because they're kind of slow moving. they're just firing up thunderstorms and dropping a lot of water because they don't
really move that fast. >> interesting a lot of things to consider here and hopefully everyone in the path of the storm stays safe that's the most important thing. thank you for joining us this morning. >> thank you so much. >> let's turn back to the markets now if we can. it's setting up to be another record setting day futures higher and this after the dow closed above 27,000 for the first time ever. we stayed relatively around the same levels for most of the morning here the dow jones industrials indicated to open higher at 91 at this point. s&p 500 to tack on 8 points and the nasdaq higher by 24. let's talk more about this historic run joining me now is the founder and ceo of strategic wealth partners thanks for being here. my big question of the day is as i'm looking toward next week and the beginning of the earnings season we have seen all of these warnings from companies. cautious tones from ceos but the markets are at record highs. what is the disconnect
and should investors be concerned about that >> the disconnect right now is trade and it's having a significant impact on the tone of the ceos on their conference calls. these earnings calls are going to be more important than a 25 basis point fed rate cut which is what has been driving the market over the course of the last few weeks when you pay attention to what you're hearing on the calls, ceo confidence has been trading down it didn't sound all that hot last earnings season and without confidence they can't execute on their plans so what we need to hear out of these calls is some commentary on the trade war. is the impact getting worse or is it maybe more manageable than initially expected and the most important thing we need to hear out of these calls is we need to hear a positive tone shift from the ceos and beyond that, obviously good results and get strong guidance because if this quarter is weaker in line, i doubt the market advances from here.
most of the games this year have come from multiple expansion and sentiment begins to sour and i don't see that continuing. >> if that theory plays out and if the market doesn't have much more room to run from here, are there alternatives to u.s. equities where would you be looking >> there's no alternatives there's no better alternative. equities look really cheap relative to bonds. so the equity risk premium is over 300 when that's been the case in the past, forward 12 month s&p 500 returns have been over 12% so it's really the ideal situation for generating returns what you need to do is you need to be selective. so you need to identify companies where you love their long-term growth story maybe you don't own some of them because they're too expensive so you sit there and you wait for an expectations miss as long as their long-term growth story doesn't change, you're going to get the pull back you have been waiting for you'll get your opportunity to
get in an example of one we have been waiting to get into that we don't own yet is lulu. we love the company andthe execution and the growth story we love the brand loyalty but it's been expensive. if we can see an expectations miss from a company like that, we would be hopping in. >> got it. thank you so much. lululemon is one we'll watch for you now. indicated about flat open at this point. >> president trump bashing bitcoin and taking aim at facebook's digital currency libra in a series of tweets overnight. he says they're not money and their value is highly volatile and based on thin air and they can facilitate unlawful behavior including drugs and other illegal activity take a look, also taking aim at facebook's libra project saying it will have little standing and
depend bltand also france's finance minister all voiced concerns and so has mark cuban speaking out in an interview take a listen. >> i'm not a big fan of what they're doing there. it's a big mistake not so much because of what will happen here in the united states but globally there's going to be some dead spot in some african country that gets really upset that they can't control their currency anymore and that's where real problems start to happen so i'm not a big fan of what they're doing but it's only in the talking stage right now so we'll see what happens >> also president trump tweeting dependable and reliable dollar should be the only real currency in the usa saying it will quote always stay that way the coin investors shrugging off
the president's comment. bitcoin is up more than 2% this morning. >> good summary of all the action thank you. still ahead, the countdown is on days away from amazon's biggest shopping event of the year setting you up with a prime day primer straight ahead and later why twitter users are all atwitter, stay with us worldwide exchange will be right back er. (in dutch) it's happening..! just ok is not ok. especially when it comes to your network. at&t is america's best wireless network according to america's biggest test. now with 5g evolution. the first step to 5g. more for your thing. that's our thing. some big news from mr. clean. stop struggling to clean tough messes with sprays. try new clean freak! it has three times the cleaning power of the leading spray
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welcome back amazon kbegearing up for prime y it kicks off on monday the two-day event is expected to be a big revenue generator for amazon it could bring in just under $6 billion. it's gone up over time but also gotten longer. competitors are not content giving up the shopping spotlight. you have brands like ebay, target, walmart, best buy,
macy's all hosting competing sales of some sort and you can call it a prime day halo effect because last year u.s. retailers with more than a billion dollars in sales saw the average sales jump 54% compared to an average july tuesday some industry experts say this year's surge could be as high as 79% so there's a piece of the pie perhaps for others too joining me now is the ceo and also former vice chairman at target thank you for being here with us today. >> good morning. >> amazon keeps lengthening this event. so now we're at 48 hours but they also started to focus a little bit more on profitability. does that look different this year for prime day are prices going to be as low for shoppers as we have seen before >> i think they'll be just as low. they're just sharing some of the pain with the vendor so they're requiring those selling on amazon to take some of the discounts in their
profitability. but they're paying a lot more attention to making money as you have noticed in their results and they are finally making money on their retail. also a lot of it has shifted to marketplace sales which is now 2-thirds or more >> so if you're a brand and available on amazon on any other given day what's your risk reward when trying to consider how you participate in prime day? you want to be apart of it but you have to protect your own margins too. especially if amazon is asking you more than in the past. >> it's a little bit like black friday the whole thing is like black friday black friday was originally a few hours and then all day friday and now it's two days, both thursday and friday now amazon started as one day and expanded to a day and a half and now it's two days and not only that but they're starting the deals early so you can get some prime day deals today
black friday has never been a big money maker. neither is prime day a big money maker. it's a recruitment vehicle recruitment to get people to sign up for prime. a lot of what they feature will be alexa enabled devices and get you hooked on that and other services a really interesting question is whether these sales are incremental though the $6 billion is a lot of money by any measure that's about what jcpenney does in half the year and they'll do that in just two days so it's a lot of money, some of that is sucked in from other periods and being pulled forward. that happens any time there's a big sale if you're out there, you don't get them. >> it's interesting the halo effect from some of the other retailers. i think consumers are smart. they may not necessarily buy right away they check around and see what
the other prices are so you have to play here, right? you have to at least try. >> absolutely no choice. this is in the middle of july. this is normally a dead period for retailers and retailers have tried for decades to do something about how slow sales are during this period you may have seen them try christmas in july sales. that's nothing new but most haven't contributed much to an overall change in the marketplace. prime day has stuck and it's become really big and kind of put everything in the short period of time you have to participate and for consumers it is a good deal and a good time to buy at all retailers and not just amazon. >> it's an interesting point you made earlier that part of this is a retention vehicle for amazon's prime day and also to try to get new prime members we don't know exactly how much
u.s. households they have. how many more are out there that could pay $119 a year for this service? >> great questions if they have 60 to 100 million acounts already that is most of the population or a lot of it. they're also trying to deepen the relationships this year. so it's not just getting you to sign up for prime. they'll give you $10 off for using this for using the app for the first time $10 off for using the notification service for the first time they try to get you to try all the other parts of the rapidly growing amazon omni verse by using prime day to lure you into that just the difference in someone who is prime and not prime is a huge increase in the sales they get from those customers add to it those that are alexa
enabled and those that aren't. it's about getting you to use it >> it's likely to be another big prime day. thank you. >> my pleasure. >> time for this morning's top trending stories what have we got today >> imagine a world where twitter is down. it happened yesterday. and the worst part is that nobody could tweet about it. so twitter suffered a complete global outage for about an hour late yesterday and even when it was restored many users experienced limited functionality. blaming it on an internal configuration change. >> i must have been sleeping during this. maybe it was good. maybe we all took a break from our devices for that moment. went outside talked to each other. >> enjoyed life. >> but this is a problem in all seriousness, people do rely on these services they use them as news feeds. >> the president got back on twitter and posted about crypto currency so clearly service was
restored google, are you listening? if you have a google home, the answer is yes. google defending now it's practice of letting human employees listen into conversations between it's google asis tansistant devices users. human workers review conversations to help improve the ai accuracy across multiple languages. >> this can't be a surprise. >> i would hope not. >> we know this has to happen. >> it's just about how comfortable we are with knowing that someone is listening to our conversation >> it's a trade off. you put one of these in your home you have to know someone is going to hear it. >> people are listening then do they have a responsibility to do something if they overhear something that, if you're in a dangerous situation, there's so many sort of -- >> that's an important point i haven't thought about that that opens up a whole other can of worms >> file this under the what were they thinking category the ceo of deutsche bank had to
reprimand executives because they were having custom suits tailored inside the london office the same day they announced the massive lay offs they cost upward of $1,800 he called the conduct disrespectful and not in keeping with our values. >> that's a bad look. >> especially for the finance and banking industry. >> tone deaf. >> you could say that maybe those appointments were scheduled but it's still tone deaf. >> not a good look. >> that's your trending. >> i like those trending stories today. on deck to 27,000 and beyond the dow set to open at new all time highs as wall street's n ile u ally rolls on wheryo castl find big money opportunity when worldwide exchange returns hey! i'm bill slowsky jr.,
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welcome back to worldwide exchange we're making history on wall street stocks said to open at new all time highs after the dow closed about 27,000 for the first time ever let's talk more about this record run joining me now. it feels like to me she got all jazzed up by jay powell during his testimony on capitol hill, right? he took us there i think what's going on here is the data has continued to outperform the data has been good over the last few weeks and you combine that with a fed that's bound and determined to cut rates at the july meeting 50 basis points. the data is so good. >> the fed right now is not
really operating off of the data they're operating off of their instinct or their gut. and they're worried about a downturn in the second half. they want to go enough to offset that risk. the risk management of the first order. >> they're supposed to be data dependent, no? >> they are 100% coming into this week's testimony we get a little nervous. we're getting a little bit nervous about our call because the data continued to jump over every bar we set for it and then jay came out and it was super clear he is still ready to go. he still sees the uncertainties and global growth weighing on the u.s. outlook in the second half >> how much of the global uncertainties are a result of the trade tensions between the us. and china? >> that's one of the big differences between us and the fed. the fed doesn't see any physical problems from the tariffs. they still think the tariffs were really small so they look at those we see huge effects in q-4 and
q-1 so with that big downturn in activity, we think that's a lot of what's dragging on the 12 month averages if you talk a lot about the weakness in q-1 itself we think that is directly tariff related. we think we're already on the other side of that shot but the feds just kind of internalizing that. >> so the fed meeting is july 31st so we're mid july. we still have some time. any chance that things could change. >> time but the days are ticking by so you saw the speeches yesterday, right so yesterday morning we got a cpi that surprised everybody, pretty strong number jon williams comes out later in the day. still the same determination and concerns about business investment the one last thing that could offset the fed is we'll get a whole series of regional fed surveys coming at the end of the month but i don't think they're really data dependent at the moment. >> he is trying to be insistent
that he is not being influenced by the administration or the president directly. >> that's what he has been very vocal in asking for. i don't think that's what is driving the fed here back to december, the president was also very vocal at that time about what the fed should do and the fed just hiked rates right into that. they thought the economy was great. their words at the time. so i don't think it's politics i think it's just their fears on the outlook. >> what do you think the biggest risk is right now? >> so the biggest risk is obviously the economy itself we see a lot of strength we see a lot of rebound in that growth should that fizzle out a lot of fears of recession could manifest. >> i hope we don't have a
recession but recessions happen all the time well it's almost time for worldwide exchange to be over. quick check on futures we are higher and oil prices also ticking slightly higher as we continue to watch the storm in the gulf of mexico. happy friday, everyone squawk box begins right now. >> good morning, a record setting week on wall street could get better after the dow closed at about 27,000 at the first time ever and bashing bitcoin and other crypto, president trump taking to twitter to slam the crypto currency and facebook's libra in the process. plus new numbers confirm the record breaking numbers for squawk box -- i'm sorry, for stranger things season 3 we are going to tell you what the successful franchise means for the stock. it's friday, july 12th that's right 2019 we'll show you that a little bit
later. squawk box begins right now. ♪ >> live from new york where business never sleeps, this is squawk box good morning becky and andrew are off today joining us for the next few hours, guy adami >> all unbelievable things. >> all unbelievable into a perfect, perfect storm of sunshine. >> >> i don't know i would not bring that right into it then. >> it's funny that you men