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tv   Worldwide Exchange  CNBC  April 28, 2017 5:00am-6:01am EDT

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good morning. market alert. nasdaq futures jumping after big beats from amazon and alphabet. european banks also rolling out results. numbers from ubs, barclays and rbs straight ahead. and new this morning, president trump threatens to terminate a south korean trade deal and warns a major conflict with north korea is possible. it's friday, april 28, 2017, "worldwide exchange" begins right now. ♪ good morning. happy friday. welcome to "worldwide exchange" on cnbc. i'm sara eisen.
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>> i'm wilfred frost. very good morning to you from me as well. welcome back. >> thank you. it's been a crazy, long week. exciting day to be on "closing bell" with all the earnings. >> that's coming up later today. >> new music friday. we'll listen to the latest from katy perry featuring migos. probably saying that wrong. also wanted to send my congratulations and thanks to louisa bojesen after her final show on "street signs." my very first day on air was with louisa. wishing her thanks, because i wouldn't be here if not for all of her support and help back in the early days. wishing you the best with what i'm sure will be a fantastic future. >> we always appreciate the good lead-in to "worldwide exchange." let's get to the markets and show you what futures are doing. it's been a strong week and strong month to mostly the action this week which is the best so far for the dow and the s&p of 2017.
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best week for those indices. dow futures down 23. s&p futures up 2. nasdaq futures, that's the high point as it was yesterday as well. up 19 points thanks to those tech earnings. the index may be on track for another historic day. we are set to open at a record high. a round up of the biggest names that reported, amazon, eps t toppito topping estimates by 36 cents. revenue from the cloud business, advertising and subscription services driving results. and alphabet, strong ad sales sending profits up 29%, this despite some advertisers boycotting youtube in the quarter. microsoft revenue just missed wall street consensus. a sharp drop in sales of its surface tablets and laptops weighed on company results. cloud was super strong again in the microsoft quarter.
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last but not least, intel reporting lower than expected quarterly revenue due to an unexpected slowdown in growth in the data center business. we will talk to a tech analyst in just a moment to wrap it up with a nice bow it was exciting to get those results, and it showed some of the biggest, most favored companies in the world can still deliver. to see a 4% pop on amazon. now we have the race to $1,000 stock between amazon and alphabet. >> an interesting breaking down of detail. we will dive into that with more detail in a moment. let's look around the rest of the world in terms of what asian markets are doing. mixed this morning. shanghai positive. japan and hong kong negative. you said earlier this has been the best week in 2017 for european markets. france is up over 4% for the week as a whole. most of that gain -- all of that
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gain coming monday. we have been flat to down or slightly up since then. ending on a positive note this week for all of the european markets, apart from the ftse 100, which is weighed down by barclays. >> as for the broader market picture, the ten-year treasury note yield, not a lot of action. we're set to get first quarter gdp today. the estimates have been moving down on this one. could get a sub 1% growth number. the good news is most of wall street expects that number to rebound in the second quarter. the ten-year yield has been stubbornly stuck around the 2.30 level. not sharing the enthusiasm we're seeing in the equity market. >> we saw a pick up on monday, that global risk on again post french election. interesting to see that reflation didn't play into french yields, but also into german and u.s. yields. since then, monday we saw a decent move, then just tread water since. >> one place not exactly joining the party this week with the
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record high nasdaq is oil prices, which has slipped fwan. seco again. we are seeing a rebound this morning. wti, 49.48. yesterday it dropped below $49 a barrel. that was a weight on energy stocks, industrials, transports did not have a good day. brent crude just below $52 a barrel. nat gas up about three quarters. maybe crude will lend support into today's action. did not this week or yesterday. >> the other thing about oil prices, a man we listen to closely on the show, jim cramer, constructive on the market, has been for a while, particularly in earnings season, which is beating, he continues to say keep an eye on oil prices. that's a concern. if it slips further, that's worry for the market. it's a bearish signal. >> to prove his point, you're seeing the action in stocks. you're not seeing it in the bond market, not in oil, not even in
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currencies. >> apart from the pound, at a seven-month high. >> but it's a stock market story. especially in the nasdaq. that points to the strength, and the confirmation from the earnings results that we're seeing strength in corporate america. the euro at 1.0935. a half percent move after draghi sent the euro lower yesterday. we saw that strong dollar play throughout the session. the dollar against the yen, also stronger. that's a more fractional move. the pound continues to zoom in. heading back towards 1.30. >> election on june th. polls are narrowed a fraction. theresa may still has a big lead. in terms of the euro, the big mover was the french election. yesterday mario draghi, the comments he was slightly hawkish in terms of saying downside risks are diminishing and slightly dovish about inflation. the net effect wasn't a huge move. the big mover has been politics.
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>> there's gold up a quarter of a percent. >> back to stocks that are driving this rally. starting with google. 21$21.4 billion, that's how muc money google earned in advertising revenue. here's what the cfo had to say about the blowout number on the earnings call. >> we've benefitted from our team answer innovations what has grown advertising rev fews. in a dollar basis the increase has resulted in positive results. >> james cakmak joins us now.
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>> i think the reason we're seeing big tech better, the bigger they get, the better they can provide searches. it brings more advertisers on board. then in the case of amazon, the more money the company makes, the better the selection gets and the better the experience gets. as it relates to youtube, i think those fears are put to rest because of the fact that advertisers can't just ignore a company with a billion use airs cross all of its portfolios. what we saw this quarter, acceleration on the core metrics, that should alleviate a lot of concerns. >> everybody scrutinizes the post per click when it comes to ad revenue for google which continues to decline because of mobile ads, youtube less pricey.
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have investors gotten over that? has google proven that's not an issue? >> i think investors are getting more desensitized to it. you are seeing some pricing deflation industry-wide. but at the end of the day, as long as engagement is going up at an accelerated rate, you can give a pass. do you have a path to return cost per clicks into positive territory. >> let's talk about amazon, james. significant results there. we got more details about what the retail part of the business is doing in terms of logistics and delivery. were you encouraged by that number? >> yeah. look, it's very hard to bet against jeff bezos. you had a quarter where the profits were down year over year, but yet again, it surpassed expectations. despite the fact they're investing all this money on the
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logistics side, fulfillment, content is going through the roof. demand is there on the top line to give them relief on profits. at the same time you see new potential revenue streams start to kick in which can potentially help further expand margins over time, such as advertising. and then when you look at international opportunities, we see them as actually better positioned than local incumbents in india. >> they did talk a lot about india. can you give us a tidbit from the calls? what was the overall tone on the calls? >> i think just overwhelmingly positive. just even the holes that you can poke into the story, you can explain away as short-lived phenomenons in terms of what you need to do to achieve the longer-term mission. surprisingly, tech hasties to
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has historically been more about hedge funds, but longer-term horizons places it on all institutions which makes these stocks that much more attractive. >> james, thank you. that is an interesting sort of change. james cakmak. quarterly results from three big european financials. ubs, the company posting a 79% rise in net profit amid strength in the company's wealth management business. the firm offered a cautious outlook saying improved investor sentiment had not translated into increased client activity. sergio ermotti said his goal is to get on the trend higher in fixed income. >> we are delivering a return on capital of our investment bank of 24%. it would not be possible with a larger fixed income business. there is a bit of a party, but we will also make sure the next morning we don't have a hangover. >> barclays saw its shares go
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south after the bank took a one-off impairment charge on its african business as well as a trading miss. investors listening to comments of jes staley over his treatment of a whistle-blower saying he made a mistake and will not offer resignation to the board. he did not make a clear statement in the opening of that. in terms of the barclays numbers, down 4.5%. the big reason for the miss is the trading revenue. i wanted to break this down. fixed income trading down 1%. consensus was up 17%. equities down 10%. forecast was for down 5%. if we talk about deutsche bank which also missed in this area, on one level it suggests the u.s. banks are outperforming. the worrying thing for barclays, they have been focused on building up the investment bank in a way deutsche bank has been under pressure more recently. a surprise disappointment for them. also the first quarter under the head of the investment bank. he was poached from jpmorgan to lead this part of the business.
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so definitely a disappointing trading performance. that said, elsewhere the core investment bank numbers were better. jes staley saying he doesn't want to be judged on one quarter. but definitely a worrying miss for them. this is an area he wants to focused on. >> european banks versus u.s. banks score card? >> u.s. delivering significant limit ubs better, and credit suisse was all right. deutsche bank missing because they were under pressure. barclays were not expected to miss to this extent within the trade revenues which they have done. rbs first quarter results dpe exceeded estimates. up 2%. follows from lloyds banking group beating on the domestic business as well yesterday. look at shares of starbucks. they're slipping this morning. for the second quarter in a row, same-store sales failed to meet wall street estimates. in the conference call the ceo
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remained optimistic about the rest of the year saying strong performance in china and new products like the sweet and sour unicorn frappuccino will help the chain grow revenue growth in the second half of the year. even in the earnings release, they said march and april looked stronger in the u.s. on that note, kevin johnson and howard schultz will join squawk on the street at 9:30 a.m. eastern. to follow up on barclays, on the call jes staley said on trading he's disappointed in how we did in u.s. rates, but said it's a trading issue, not a volume issue. it's not market share but a one-quarter issue. barclays shares down 4.5%. third point wants honeywell to spin off its aerospace division saying the move would create more than $20 billion in shareholder value. the stock jumped 4%. news out of washington
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overnight. president trump issuing a warning on north korea. in an interview with reuters. listen. >> well, there's a chance that we could end up having a major, major conflict with north korea. absolutely. >> in that same interview the president took aim at a trade deal with south korea. >> it's unacceptable. it's a horrible deal made by hillary. it's a horrible deal. we'll renegotiate that deal or terminate it. >> when will you announce that. >> very soon. i'm announcing it now. >> interesting comments, of course there. he's backed down on other trade deal rhetoric. so i don't think the market reacting much to that. i think also this terms of his comments on possible conflict with north korea, the geopolitical concerns in general have softened in terms of investors minds over the course of the last couple of weeks. >> we had that meeting where he
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called 100 senators to the white house. unclear what that was about. but this is something that we'll watch. >> yeah. >> clearly it is one of the biggest geopolitical challenges for his presidency within 100 days. market implications sort of less clear, especially talking about an economy like north korea. when you talk about china participating in the strategy, then you have the two biggest economies in the world. >> during the course of the week, geo politics has cooled. one reason for the market to gain this week. 19 hours until a possible government shutdown. lawmakers have until midnight tonight to pass a spending bill. sourt sources telling nbc news that the house will hold a vote this morning. also the house will not vote on a healthcare bill this week. today trump will sign an executive order that could expand off-her energy development. the president will instruct the interior development to revise president obama's five-year plan for developing federal waters. the executive order will tell
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the commerce department to reframe from naming or expanding marine sanctuaries and review existing ones. he will also seek to overturn obama's efforts to put part of the arctic waters and atlantic off limits to drillers. there are four pieces of economic data and more earnings today. the first read on q1 gdp out at 8:30 a.m. with forecasts calling for growth to slow. the q1 employment cost index is out at 8:30. at 9:45, april chicago pmi, followed by consumer earnings at 10. exxonmobil, general motors report before the opening bell. coming up a flood of stocks to watch. we talked tech a bit. but we'll get you a round up of the other big movers still ahead. there are more. >> there are, indeed. as we head to break a check on european trading. ending on a positive note for most markets. the ftse weighed down in part by
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barclays. a good week for european trade. france up 4%. it's what busch is known for. what are you known for? i'm indecisive. scratch that. no, that's right.
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although... [sfx: buschhhhh]
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expected quarterly loss thanks to strong sales of flagship camera drones. shares are under pressure. they initially popped on this news. a beat on earnings for a change. the ceo will be on "squawk alley." baidu shares are dropping. the chinese internet companying announcing its ceo is -- cfo is stepping down to become ceo at its investment firm. atehena health shares gettig hit hard. they fell short in the latest quarter and are lowing full-year guidance. down 16%. sanofi seeing a jump in its net profit thanks in part to the sale of its animal health business. the french drugmaker is backing its earlier released full-year outlook. up 1. 4%. sony said 2017 operating profit will be one of the strongest in
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history. the upbeat guidance pegged to the success in the game semiconductor and financial units. shares basically flat in tokyo. united airlines has reached a settlement with dr. david dao, the doctor was violently dragged off a united flight earlier this month. dao's lawyers announcing the deal yesterday. they did not disclose the financial terms of the settlement. united shares were down yesterday as all the airlines were down. they came off lows on this announcement. >> i would love to know how much that settlement was. ball mark, was what do you reckon? >> phil lebeau said maybe 10 million, but just a random guess. >> extraordinary figures. >> united wants to put this behind him. drfrnlg >> i hope he's been paid well. >> united just wants the video to stop airing on every network every day. >> which is not happening.
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unlucky, united. i hope he's been paid well and enjoys it. a tech company is making its market debut today. cloudera priced its ipo last night at $15 a share. that values the softwaremaker at 1.9 billion, well below the 4 billion it was once valued out. intel holds a 19% stake. it will trade on the new york exchange today. the ceo will be on "squawk alley" later today. it was number 14 on thene cnbc disruptive 50 this year. still ahead, the president in his own words. tomorrow marks the 100th day of his term. we'll tell you why trump thought being america's commander in chief would be easier. this is one of those trending
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stories. first, here's today's national forecast from nbc's bill karins. >> good friday morning to you. business travel will be difficult in the middle of the country. we have warm air coming up the east coast. the middle of the nation is where the problems will be. severe weather over the next two days. a lot of flooding issues. severe weather for 24 million people today possible. large hail in oklahoma, southern missouri, arkansas, into the ohio valley. on saturday, look at this. d.c. almost 93. that's air conditioning weather in the mid-atlantic, up to new york city. still dealing with stormy weather in the middle of the country. west coast looks good. on saturday, 32 million people at risk of severe storms. st. louis, dallas, down through houston. by the time we get to sunday, the severe weather threat diminishing but still watching the awarm air in the southeast.
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more "worldwide exchange" when we come back. can see inside patients, can also detect early signs of corrosion at our refineries. high-tech military cameras that see through walls, can inspect our pipelines to prevent leaks. remote-controlled aircraft, can help us identify potential problems and stop them in their tracks. at bp, safety is never being satisfied. and always working to be better. we, the device loving people want more than just unlimited data. we want unlimited entertainment. so we can stream unlimited action. watch unlimited robots. watch unlimited romance. if you are into that. but we also want more like... unlimited hbo. can i stop dying now mark? no can't do mi amigo. it's unlimited. besides you are really good at it james. don't settle for any unlimited data plan. only the at&t unlimited plus plan comes with hbo included at no extra charge.
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coming up on "worldwide exchange," countdown to shutdown. lawmakers have until midnight tonight to get it together. joining us next, anne colander, a budget guru. stay tuned you're watching "worldwide exchange."
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good morning. tech on a tear. solid earnings from amazon and google taking the nasdaq into unchartered territory. countdown to shutdown. lawmakers have until midnight tonight to pass a spending bill and keep the lights on in d.c. and the one thing president trump really misses now that he's president. we'll explain. his interview in his own words. it's friday, april 28, 2017, you're watching "worldwide exchange" on cnbc.
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good morning. welcome back to "worldwide exchange." i'm sara eisen. >> i'm wilfred frost. it's new music friday. we're kicking off with the latest from haley steinfield. it's titled "most girls." straight to the market action this morning. ban good week for u.s. equities. we're up about 2% for each of the three indoiss for a whole. most gains coming in the first couple days off the back of those french election results. earnings have deliver the since then and kept the markets higher. 2% gains is the best week we've s seen since 2017. tech names likely to support the nasdaq, up 22 points. the dow slightly negative, s&p higher by 2 points. good week around the rest of the world, not so much in asia.
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ending on a mixed note. europe had been a great week. france looking at 4% of gains for the week as a whole. all of europe is positive today apart from the ftse 100, which is lower by a quarter percent. in part because of barclay's miss. as for the broader market picture, oil has been a loser this week. it's getting a bit of a bounce this morning. wti back above the $49 level. 49.33, yesterday slipping below there. brent at 51.66. it's also up, a little less than half a percent. this is oil's second negative week in a row. it dragged the energy shares down. we'll get the exxon and chevron results early this morning. we'll see how they're dealing with prices. as for the ten-year treasury note yield, stuck around 2.30. not quite sharing the enthusiasm about the overall economy that may may be reflected in the stock market. got a little pop on the back of
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french election results, but basically stuck around that level. dollar index, today a story of dollar weakness against the euro and strength against the yen. that's a reversal from yesterday. 109.40. that's having a strong move. up 0.6%. dollar versus yen continues to climb, 111.44. the pound has had a strong month. 1.2931, up a quarter percent. inflation data in the uk has been strong as well as economic data resilient. >> the euro jump in the last hour is on eurozone inflation data, which came in better than expected. annual rate of 1.9%. consensus, 1.8. yesterday mario draghi slightly hawkish comments came in terms of general down side risks to the economy softening, his dovish comments came on inflation. but inflation this morning leading to euro's jump to back near the highs of the week.
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as for gold prices, they are on the move higher. taking their cue from the weaker dollar. up this morning, they've given back some gains. a little more than 0.1%. shares of amazon popping this morning following a blowout quarter. landon dowdy has the details for us. >> good morning. amazon's amazing dominance continues. shares of the company up about 4% in early trading this morning on a better than expect eed fir quarter. margins were better than expected despite a steep ramp up on content, fulfillment and prime minister. first quarter was up. q2 profit is light, but that's likely to get a pass. investors shrugging off concerns. amazon shares hitting new highs
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in after-hours trading. the stock up a little over 3% right now. shares of google parent alphabet sharply higher as well this morning after the company reported a big surge in quarterly revenues and profits. here's what the cfo had to say about google or alphabet's blowout quarter on earnings last night. >> we benefited from the team's innovations that continually enhance our advertising business as evidenced by the ongoing growth of sites revenues. on a dollar basis, the increase in sites revenues reflects the healthy growth in mobile search. >> microsoft under some pressure after reporting weaker than expected revenues for the late effort quarter. microsoft continues to bet on the cloud for future frogrowth. 11% revenue growth on the intelligent cloud. almost 100% for ajur. here is microsoft's ceo, satya nadella on the call.
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>> across all industries, organizations are looking to digitally transform with the state of the art cloud services, ai and user interface technology. increasingly these organizations are turning to microsoft as a partner they can trust for innovation and building their own digital capability. intel also reporting a slight revenue miss. we spoke with the cfo yesterday on "closing bell." he brushed off the lighter than expected revenues for the quarter and focused on future growth. >> we feel great about the quarter. up 7% year-on-year, strong operating income and earnings growth. the data center performed in line with our expectations for the full year. looking at 8% growth for the year. 6% is what we expected in the first quarter. we feel we're well positioned with an exciting product coming online. >> 6% revenue growth in the data center came in as disappointing.
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stephanie link was with us, saying the whisper number was more like 8%, 9%. probably didn't like the cfo to say that was in line with what they were expecting. starbucks sharing trading lower after the company reported weaker than expected revenues for its latest quarter. same-store sales came in weaker than expected, especially in the u.s. that 3%, not quite the 5% that investors are used to. we'll hear more about starbucks quarter and whether they can turn it around this morning. the ceo kevin johnson and executive chairman, highway ward shultz, joining "squawk on the street" later this morning. ubs reports q1 profits up 79%. saying improved investor sentiment had not translated to increased client activity.
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>> barclays saw its shares go south after the bank took a one-off impairment charge on its african business as well as a trading miss. on the call he said it was down to u.s. rates trading, saying he had good volume in the business, but given the volume he would have expected better performance. putting it down to positions. on the goldman sachs miss which wes talked about a couple weeks ago, they didn't put it down to incorrect positions, they said it was more down to the volume. so difference between the two there. of course for barclays, the worrying position is they had been investing heavily in here. they would have liked to see their performance more akin to the u.s. banks, as opposed to deutsche bank. another uk bank, rbs reported quarterly results that exceeded estimates thanks to strong performance in the bank's
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uk business. follows from lloyds banking group beating on the domestic business as well yesterday. rbs and lloyds outperforming for strong domestic uk beats. >> to washington, president trump making a big warning on north korea in an interview with reuters. >> well, there's a chance we could end up having a major, major conflict with north korea. >> the president also threatening to tear up a 5-year-old trade pact with south korea calling it a horrible deal. lawmakers have until midnight tonight to pass a spending bill and avoid a government shutdown. nbc news reporting the house will be holding a vote later this morning to fund the government. all of this coming on the eve of president trump's 100 days in office. joining us now is stan collender
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from msl group. let's get it out of the kay. you think they'll manage to avert a shutdown on the 100th day in office? >> absolutely. the bill they're voting on today is a simple one-week extension to give themselves more time to work out the smaller problems. the bigger problems have gone away, that's planned parenthood, that's the wall, a variety of smaller things. they're still working out the details. they'll avoid the shutdown for this week, next week, but what will happen in october when the issues come back? and will still have to be negotiated? >> what will happen between now and october in terms of the tax plan? we heard more details about that earlier in the week, but investors skeptical they can deliver on it. >> they should be skeptical. this is not much of a tax plan as much as it was a press release that said if i were king this is what i would do.
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remember, tax reform in 1986 took three years. you're not going to get anything this major as the president is proposing in a period of months. i think 2018 at the earliest is probably the soonest we'll see a tax reform plan. nothing between now and the end of the year. >> what do you think will be the biggest sticking point? will be over deductions? getting rid of most all of them? >> the biggest issue is how much can we tolerate a debt increase. from the beginning this was going to be revenue increase, it wasn't going to increase the deficit or debt. since then, the deficit and debt have become a much bigger issue. until they get over that threshold question, everything else is largely irrelevant and secondary in importance. so you suggested deductions and credits being eliminated, maybe a board adjustment tax. none of that is necessary if
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they decide a $6 billion increase in the deficit and debt is okay. >> how do you rate president trump's first 100 days in terms of what he achieved? >> i give it at best a "d." the two biggest things that he has failed to do is, one, develop a relationship with congress. a working relationship with congress. and that really puts the second 100 days in serious jeopardy. that is still something to be worked out. the second thing is, you saw it in the reuters interview that you mentioned. i stel is not sure about how to do his job. that is he's not sure what is required of him as president. he has not developed a philosophy about governing or about what his role should be. as part of that he hasn't gotten his people appointed or nominated yet which puts the next 100 days, 200 days, next year of his presidency in jeopardy. makes you wonder about what the
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level of the -- the ability of this administration to get anything done over the next year, maybe over the next 3 1/2 years. >> harsh, stan. thank you for joining us this morning. >> of course. >> stan collender. that is a question. the market has rallied. you can chock it up to corporate earnings, global economic improvement, but it doesn't change the fact that since the election we've seen a more than 11% run up in the s&p, 16% from the nasdaq. there is hope baked in of pro growth policy, republican congress breaking out of this slow and sluggish growth. so what stan says is something that will matter. >> i think there's a lot of optimism a change in tone compared to the last administration and the potential clinton administration. >> pro business. >> that's a big factor but a change in tone rather than reality and difference in policy that has not necessarily been achieved. president trump reflecting on hits first 100 days in
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office. in an interview with reuters saying he loved his previous life. he also said he thought being president would have been easier, but it's what the president said he really misses about his old life that has some people buzzing today. >> i was ability to uas able to restaurants -- >> you liked to drive. >> yeah, i can't drive anymore. >> he still gets to go out to some restaurants, just only his own ones. >> with a whole secret service. >> that must be annoying. any political leader, it must be annoying those changes. >> i think it's refreshing to hear comments like that. he was a political outsider. this is the first job in office. and it is the most important, most powerful one in the world. >> i have to say, the not driving thing would be nice. i would love to go around in that huge -- >> for me, too. >> that's good for all drivers on the road. safety first. when we had come back, taxes continue to dominate the
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editorial pages. today's must reads straight ahead. as we head out, a check on futures. mixed at this hour. >> look at the nasdaq. it will open at another record. >> great tech earnings last night. some more earnings before the bell. particularly energy names. n to , dramatically increasing print security with enterprise printers by hp. which is great, unless you're a corporate spy. unsecured printing makes your network vulnerable. enterprise printers by hp help prevent costly security breaches that can compromise your network and reputation. so i'm stuck spying the old fashioned way. hey. i'm not spying. secure printing by hp. i.t. orchestration by cdw.
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welcome back to "worldwide exchange." time for our must read stories. my pick in the "wall street
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journal," make the net neutral again. the editorial board writing about the new fcc commissioner's plan to roll back net neutrality which he mentioned in a speech. the journal notes that between 2014 and 2016, it was noted in the speech that capital expenditures on broadband dropped 5.6% or 3$3.6 billion a decline he called extremely unusual. this is the first time such investment declined outside of a recession in the internet era. so pai, as the editorial board notes, bringing up some facts and figures about how these new rules during the obama administration that were put in place on internet service providers have held back investment, and the overall economy, saying that he proved his point. the trump administration talks about deregulation, rollbacks this is one thing they can point
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to that could actually help boost that economy and that sector in terms of investment without getting into the weeds of net neutrality. >> a complicated issue. we can move on. up next after the break, setting you up for the big trading day ahead. tally leger will join us next.
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welcome back. we're approving the top of the hour, the team is getting ready for "squawk box." andrew ross sorkin is live in new york. >> the big question this morning, and as we approach these 100 days, what will happen to healthcare? we have tom price who will join us in the 8:00 hour this morning. we will talk all about that and more. we also have bill daley to help us address what the last 100 days have meant. eric cantor will join us as well along with bob kerry.
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andy carr will be joining us. of course we will break down all of the results from yesterday, the google numbers, which everybody is talking about. and a couple of earnings reports that will hit the tape this morning. thanks, guys. >> looking forward to it. see you in nine mines time. >> record aerni iearnings from alphabet and others. talley leger is here. just when you thought the tech stocks couldn't get bigger, you see 3%, 4% moves for alphabet and amazon. shows this market in large part is trifen driven on earnings, w you say? >> absolutely. that's the thesis here given the upward trajectory of business activity, like the ism and pmi. suggests we can see more on that front in terms of earnings growth. which sectors in particular are
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you excited about? earnings so far and expectations for earnings season to go. >> i think there's a view out there in the marketplace that the economy is suffering from a bit of a cyclical slowdown here. and that's helping the real generators of that faster rnings growth to benefit. technology would be one of those key sectors. >> is it too early to look through the tax proposals, the blueprint and pick out winners and losers in the market? >> i think it is. just given the questions and uncertainties surrounding trump's ability to actually get stuff done on the policy front. but look, there is still some hope. it's still early. and i think that beyond the cyclical impetus that is helping earnings to growth and recover here, if you add a corporate tax rate cut to that, it strengthens the argument for earnings growth. >> is oil price slippage the last week or two a red flag for
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you? >> i think it's -- on one hand it's a signal that there is a bit of a softening in the very near-term in growth as i mentioned. but i think there's some other complex moving parts on the supply side as well. in terms of opec producers, you have them sticking by in large to their agreement to cut and constrain production. on the domestic side you have producers a the home kicki at hp a notch. >> will that hold things like industrials back? >> i think industrials, as you mentioned, i think that is one of the key sectors that might be at risk if trump is unable to
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pass through some of his pro-growth policies. just given on a price to book basis the current level of valuation there's that sector. >> in terms of the u.s. dollar, what's your view of that? the broader dollar index hit lows not seen since november over the course of this week. is that something that's encouraging for firms for the rest of the year? >> i think that does remove a headwind and add another positive data point to the krou constructive thesis on earnings. longer term, looking further out beyond this quarter and next, i think we to still have the basic ingredients for a stable to strong currency. that is a cyclical rise in inflation, the fed that is raising rates in response. and a u.s. economy that is growing at around %. >> we'll see. because today we're supposed to get a number around 1 %, sub 1% growth. talley, thank you.
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talley leger talking higher earnings. last trading day of the month. here are our charts of the month and week. mine is amazon. >> we started with mine. euro chart for me. a lot of ecb influence on this. we fell the first part of the month. lower than people exepected int the election. significant rally off the back of that election result. >> and the data has been better out of europe. >> draghi a bit more hawkish. up 0.6% today because of inflation data. >> mine is amazon. i spoiled it earlier. that is one that is a reflection of this market that prices -- that wants earnings growth but also is finding if it's a defensive stance, if it's a cyclical stance, something about these technology companies are in the sweet spot for what investors are wanting. they delivered. we'll see what facebook and
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apple show next week. frlt and likely . >> that's it for "worldwide exchange." catch us on "closing bell" later today.
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market alert. nasdaq futures are popping following results from amazon, alphabet, microsoft and intel. a full run down of all of those. and new this morning, president trump threatens to terminate a south korean trade deal and warns that a major conflict with north korea is possible. and shutdown looming. congress has until just midnight to reach a deal to fund the government or -- remember we used to use this afraid a lot about the fed, kick the can down the road to the next week. it's friday, april 28, 2017.
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"squawk box" begins right now. live from new york where business never sleeps, this is "squawk box." good morning, everybody. welcome to "squawk box" on cnbc. we are live from the nasdaq market site in times square. let's look at the u.s. equity futures. things are mixed. not off by too much for the dow, but dow futures are indicated down by ten points. s&p is indicated up by 3 1/2. the nasdaq after strong earnings last night are indicated sharply higher. they're up by 24 points. keep in mind this comes after another strong day for the markets yesterday. you have seen now the major averages up 3 out of the last 4 sessions. we will talk about the earnings news helping things after the bell last night. that's including to push up the nasdaq this morning. in asia, some concerns about what's happening in


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