tv Worldwide Exchange CNBC August 17, 2017 5:00am-6:00am EDT
president trump's corporate council collapses. the latest on the story straight ahead. markets reacting notable moves in the dollar as washington turmoil comes into play we have a round up of market action. and big earnings on the deck from the likes of alibaba, walmart and gap. we'll tell wlau you what to loor when they report it's thursday, august 17, 2017 "worldwide exchange" begins now. ♪ good morning
welcome to "worldwide exchange," i'm sara eisen >> i'm wilfred frost your shachair all right? >> no, i have to move up >> good morning to you from me as well. i'm wilfred frost. e let's check in on the global market picture futures are a bit down today after we saw fractional gains yesterday. a little bit of a pull back today. less than in the european markets. nasdaq down by 11 points dow 6, s&p by 2. the fed minutes yesterday seen as a bit dovish, but at the margin it seems like there's a commitment to the normalization of policy, albeit perhaps rate hikes there remains division on. ten-year treasury note, a bit of
slippage yield to 2.24% around that level again. yields came off a bit because of the dovishness of the minutes and those political issues >> global bonds rising today as for the action in asia overnight, let's show you what happened after wall street lost much of its earlier rally. japan closed in the red fractionally hong kong down a quarter percent. shanghai comp and kospi in korea continue their comebacks from last week. as for the early action in europe this morning, just let us show you what we're seeing red across the board declines of 0.3% for the dax all the way to the ftse 100 and across europe. spain is down a half percent >> germany an france coming in today were up 2% for the week sl just a bit of profit taking. oil prices slipped yesterday given the focus of the fed mys and on political stories down 1.6% yesterday.
dollar board, which slipped 0.4% yesterday, as i said with that split division in the minutes about when rate hikes should come in light of the softer inflation data, today we have the euro softer against the dollar, 1.1735 ecb minutes today. focus on that the dollar slightly softer yans the yagain. gold prices for you, which were up about 0.3% yesterday, up more than that today 0.8% 1,293. bitcoin prices for you -- >> there we go part of the data check >> i will have to guess the price, it's not in my mind yet >> 4 123sh,350. major business leaders walking away from president trump's business advisory groups the move prompting the president to dissolve the councils
and the ceo backlash continues tim cook of apple sending a letter to employees yesterday saying i disagree with the president and others who believe there is a moral equivalence between white supreme cyst is between white supreme cyst is a nazis and those who stand up for human rights ceos once allies, abandon trump. eamon javers has more on the fallout. good morning >> reporter: good morning. we're here in bridgewater, new jersey, a couple miles away from the trump golf course in bedminster, new jersey where the president will wake up this morning in the wake of that dramatic and historic day. we saw the conference call among the elite business ceo group advising the president yesterday afternoon in which they decided the council could not continue
because of all the defections from ceos who wanted to distance themselves from the president. after that conference call was complete, the president issuing this tweet saying it was his decision to close the council saying rather than putting pressure on the business people of the manufacturing council and strategy and policy forum i'm ending both. thank you all. after that, a deluge of statements from america's most powerful ceos. to give you a sense of some of the language, here's some of the snippets aetna's ceo said i'm ashamed of our president's behavior and comments jamie dimon saying i strongly disagree with president trump's reaction johnson & johnson ceo, the president's most recent statements are unacceptable. small business council president, president trump must recognize the broad criticism he is receiving we'll wait and see when the president wakes up here whether he does recognize that broad treatment. we'll have to keep an qui eye os
twitter feed, that's often where he expresses displeasure but this is a stinging rebuke for a president who prided himself as a ceo president, would bring more open lines of communication between the businesses and the white house and enjoyed surrounding himself with all those executives at the white house. >> don't you think it's more than that in they have a group of advisers, they have not filled all their staff the assumption on wall street and for those that saw the ceos beyond just the photo op is that they would help get some of these policies done and put into place and put into action. the fact they would have a seat at the table excited a lot of investors and people looking for some of these changes. >> absolutely. the afl-cio president left the manufacturing council saying they barely did anything other than create letterhead there was no "there" there there was a real sense of
optimism at the beginning of the administration i was there at the white house on the north lawn as we watched platoons of american ceos representing every type of business and sector coming in to talk to the president of the united states. but the sense of follow-up wasn't there for a lot to of ce. i texted last night with one of the ceos on this elite business council, asked what happened he texted me back one word saying "resolved." you get a sense of finality there and maybe some relief. >> was do we think the ration rationale, the reasoning for this disbandment was was it purely out of moral principle, or was it to protect sales of their company, if we're being facetious? i ask because what are the members of his administration thinking if it is purely about moral responsibility, could we see any
members, whether it's gary cohn or others decide to step down as well >> every individual has a different sense of morality. they're entitled to that as human beings i think it's both. you look at what the president said in that fiery news conference, i was right there about 20 feet from the president, a lot of reporters standing in the room stunned that the president would use language the way he used it, linking robert e. lee, a confederate general who took up arms against the united states on behalf of a slave state, linking him with george washington and thomas jefferson, suggesting they the suggesting there were very fine people on both sides of the charlottesville protests, including those marching with sw sw
confederate flags. hr policies and other things suggest they back an open society that doesn't stand for that if they're going to live their corporate principles, yesterday was the day for them to do it. a lot of these companies, as you point out, are broad consumer facing brands, that need to sell to everybody in the country. and they decided in order to protect that, they need to make this decision. there will be a backlash in some corners to this. a lot of people on the right, the alt-right group will see this as a betrayal of america's ceos to ideals they hold dear, and there will be calls for boycotts there's some pain for these companies as well. >> eamon, stick with us. we're bringing in john harwood how much pressure do these resignations put the president under or is it still recoverable for him because it's not members
of his own administration? >> i don't think it's recoverable, wilfred don't know what that means it's difficult for this administration to function an get things done. they had not done well with congress before this but i think it's useful to step back and think about why in the past executives have disagreed or agreed with the white house there's two sets of things narrow policy things, as sara was referring to earlier what's my tax rate going to be what level of regulation do we have business and politicians always thought about things like that underpinning that has been the assumption that everyone shares a common set of american values. right now you have people questioning whether president trump at his core shares those sense of american values that's why you're seeing not just business executives but also foreign leaders react ga s
against what the president displayed about himself. that has a business aspect, too. american companies have to operate in the world, and they have to -- so there's a personal conscious thing, but also the moral underpinning of business government relations, business relations with a broader society. president trump put that in jeopardy that's why you're seeing such a reaction on the question of backlash, eamon is right there will be backlash from some members of the president's base, but a much bigger backlash obtained from the broader society. these people who the president was speaking for are a small group of the american society. and ceos don't have to run in republican primaries like republican politics do so maybe some of the politics are much more fearful than the ceos because the ceos can speak
to the broader nation. >> was just going to ask you, john, where the -- to use your phrase, the moral underpinnings of the member of congress are, especially members of the republican party this is not what the gop stands for in any way, shape or form. how why did ceos set the bar in terms of morality and making a statement on this front for some members of congress? >> that's a very good point. they set it high what's holding republican politics back are a couple things one is fear. because the people that president trump was speaking to and expressing sympathy for are people who part of the base of the republican party, and so when you have a primary campaign, you can get opposed by these people, maybe lose your seat >> really? >> they're that important? >> oh, yes well, when i say -- when i talk to those people, i don't mean
alt-right in a narrow sense. neonazis, white supremacists, but there's a small group of people who are on the extreme per ppetuating the ugliness in charlottesville. a larger group of people are sympathetic in general to some arguments about the way the society has changed, and the effect of immigration on their economic prospects and communities. so there's a small group then an overlapping group. if you get those people on your -- after you, they can take you out. that's why president trump won the republican nomination. the core group, the one that put him over the top were people who feel a sense of identity as whites and of being under siege by changes in society. >> maybe that's why he won't go so far to insult them. they support him. >> that's 100% correct he sees those as his people. they put him in the republican
nomination, they helped put him in the white house he's reluctant to repudiate them >> you mentioned world leaders implicit criticism from uk prime minister theresa may yes, siter strong words from angela merkel. does that matter or not really in the short-term? >> i think it does matter. it adds to the sense of a broad wave of revulsion towards what the president did. what are the consequences of that wave? obviously what theresa may or angela merkel say is not going to have a dramatic impact on u.s. politics. but it increases the sense of isolation that the trump white house feels. it makes it more difficult for the trump white house to operate on the world stage, and therefore you're seeing national security officials reach out and separate themselves from the administration heads of military services are saying these are not our values. so it's a very difficult and
isolating situation that the trump administration finds itself in within the united states and around the world. >> john, thank you eamon, final question to you if you're still there the status of steve bannon and carry co gary cohn, those are the two names we're watching as we watch the trump inner circle his closest corporate adviser, gary cohn, and steve bannon who spoke out and said some things that i don't know that trump would be happy about about his north korea strategy. >> we saw an interview with steve bannon in a magazine late last night that popped up in which he said a number of things that were controversial or set twitter afire. so you saw donald trump asked about steve bannon he said we'll see what happens with mr. bannon. that's not a ringing endorsement. firing steve bannon would be viewed as firing somebody who is a link to the white nationalist alt-right group in america
it might be a way to cotterize some of the wounds in terms of gary cohn, we saw andrew ross sorkin from cnbc reporting yesterday that there were some executives on wall street who made calls to gary cohn urging him to resign from the trump administration we have not seen any movement by gary cohn publicly i was standing there in that lobby of trump tower during that press conference watching gary cohn who was standing two spaces to the president's right during that press conference. he looked visibly uncomfortable. looking up, looking down, sort of twitching he looked like a man who didn't want to be there didn't expect to find himself in that position. so the question is what kind of decision will he make? he comes from that sort of wall street business corporate culture that a lot of these ceos
come from who made those statements yesterday we'll see whether he makes dramatic decisions here soon or stays with donald trump in his moment of political crisis. >> eamon, thank you for that sara, bringing it back to the markets. we have a one week chart of the s&p 500. despite that turmoil for the president, there is the one-week chart. >> not bad >> up 1.23% for the week up slightly in the premarket today. it reminds us that despite the ceos leaving, despite even questions on what this might do for the policy agenda, tax reform, expectations for those things were low. net-net we have not seen expectations of what trump can achieve for the economy and the stock market by virtue of that slip from where they already were comes back to what jim was saying, why the market is doing well is because of earnings. politics doesn't affect the numbers. >> i would add to that low interest rates which continue to remain low with the fed in no
rush to raise rates, maybe less of a rush after the minutes. the dollar not strengthening too much got a little pop this week the economic data, bright spots and weak spots, so you go back to the goldilocks scenario all of these things have kept the rally going. up next, a round up of big earnings movers, including the one retailer feeling the pain big time today. first as we head to break, a check on european markets. slipping today down a quarter percent or so come into today, germany and france were up so just a bit of profit taking
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xfinity mobile. it's a new kind of network designed to save you money. call, visit, or go to xfinitymobile.com. good morning welcome back to "worldwide exchange" on this thursday morning. futures pointing lower but not too much about 0.1% for the dow a little bit more for the nasdaq, 0.3% coming off day where we had slight gapeins, but just small moves on the back of those slightly dovish comments in the fed minutes. let's look at currencies, dollar yesterday slipping 0.4%. today not really too much movement the dollar recovering a bit against the euro not too much movement against the yen and the pound. sara, back to you. we will get a trio of economic reports weekly jobless claims and the monthly philly fed survey are
out at 8:30 a.m. eastern that will be followed by july industrial production at 9:15. rob kaplan and minneapolis fed president neel kashkari speaking out this afternoon alibaba and walmart reporting results before the opening bell. after the close applied materials and gap. alibaba has been on a tear some of these chinese internet stocks like alibaba outperforming f.a.n.g. in terms of the technology boost. they don't get as much attention but they have been chbts don >> don't get as much attention and they had an extraordinary rise two, three years ago. we want exposure to the tencents of the world, those webos, then a stagnant two or three-year period, as the f.a.n.g.s took off, now rotation again back into those names >> back into alibaba >> walmart will be interesting they have been sort of steadily improving traffic and positive
sales, ramping up the e-commerce efforts. the question is with the stock move which has risen to reward the company, can they continue to outperform? >> stocks to watch shales of l brands slipping. the owner of victoria's secret reporting a bigger drop in same-store sales netapp beating the street. product revenues grew 10% on the year it's down 1.5%. systems latest matched estimates, but the stock is down 3% we'll hear much more about the quarter this morning chuck robbins will join "squawk on the street" f.a.n.g.s doing phone, but alibaba having a good run after delivering alpha berkshire hathaway is not budging on its encore offer.
the energy unit is standing firm on buying oncor. elliott management has been trying to top the offer with a 9$9.3 billion proposal. still ahead on the show, the big fireworks between the u.s., mexico and canada as those nafta talks get underway certainly could have implications for companies and consumer products that we use here every day full details ahead your joints... or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally found in jellyfish, prevagen is now the number one selling brain health supplement in drug stores nationwide. prevagen. the name to remember.
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good morning welcome back to "worldwide exchange." the u.s. drawing a hard line as talks began yesterday to renegotiate the north american free trade agreement u.s. trade representative robert lighthizer says president trump is not interested in tweaking the pact with canada and mexico. he blames nafta for a direct loss of 700,000 u.s. manufacturing jobs since it took effect in 1994 he warned the u.s. would use its clout as canada's and mexico's biggest export partner to get more concessions than perhaps expected >> i love digging through trade deals. on whether it's a success or not should not be on whether it lowers the u.s. trade deficit. it's unclear if president trump agrees with that that would make it difficult for
any changes without dig nothing details. >> completely agree, when you see those interviews with wilbur ross, he doesn't focus too much on the deficit >> still ahead a round up of the top stories including the continued fallout between big business and president trump stick with us. "worwi ehae"ilbelddexcng wl right back i love you, couch. you give us comfort. and we give you bare feet, backsweat, and gordo's... everything. i love you, but sometimes you stink.
following his response to charlottesville. cnbc has exclusive insight into how the biggest names of business turned their backs on the president. the latest on the fallout straight ahead. and the big money impact how the dramatic turn of events at the intersection of wall street and washington is impacting your investment. it's thursday, august 17, 2017, you're watching "worldwide exchange" on cnbc. good morning welcome back to "worldwide exchange." i'm sara eisen >> i'm wilfred frost >> we have a lot to talk about today. let's check in on the global markets after u.s. stocks sort of held on to their gains yesterday. they lost a lot of them. dow futures under pressure this down 3 ten-year treasury note yield is lower than this time yesterday that was after the release of the fed minutes, which pointed
to continued discussion about the lack of inflation and whether it was really a need to continue to raise interest rates given low inflation even with low unemployment that debate continues on the fed. the market is interpreting it in a dovish way, yields being pushed lower we'll watch that, they just ticked higher, but still down at 2.23 let's look at asian equities, a bit soft this morning. we're down for hong kongand japan. slightly gains for shanghai and south korea. european markets look a little bit soft, but in the context of the week's performance, nothing major. germany and france coming no today, up 2% ftse 00 100 up about 1.5%. as for the broader market picture, oil prices getting a boost in other types of commodities like gold. zinc is on fire in china at a
ten-year high. now about the oil. back down to 46.63 so watch that. down a third of a percent into today's session. brent crude, 50.16 down a quarter of a percent. as for the u.s. dollar, little movement today saw the dollar reverse its gain yesterday, whether it was on the back of the fed piled on by some turmoil and all of those negative headlines and ceos pulling out of the manufacturing and strategic counsels of the president. some people blamed the political turmoil. some people blamed the federal reserve. either way, the dollar weakened a bit from the three-week high that we were seeing. dollar is under pressure again verse thus the yen the euro is down, 117.26 and the dollar is firmer against the british pound. a mixed peck chor picture >> clearly they are more commit
the and certifica commited and certificate than they will move ahead with balance sheet reduction than rate hikes >> it's unclear whether the balance sheet shrink cage is having a market impact that seems less of a spooky thing for markets than higher interest rates >> particularly for the dollar the interest rate differential would have moved the dollar higher now we don't think we'll have as many hikes as quickly. >> let's quickly show you gold stronger gold, up 0.7% 1,291.70 for an ounce. bitcoin still off. major business leaders walking away from president trump's advisory groups in protest to his reaction to charlottesville. tim cook sending a letter to apple employees late yesterday saying i disagree with the president and others who believe that there is a moral
equivalence between white supremacists and nazis, and those who oppose them by standing up for human rights eamon javers ejavers has more unfolding fallout. >> it's unfolding and unpresenteunpresen unprecede unprecedenting usually companies try to stay neutral, but yesterday deciding they couldn't remain on the sidelines more during that conference call with ceos, we're told they decided to disband the organization because they couldn't move forward it simply collapsed with the defections of ceos who did not want to be associated with the organization or the president in the wake of his fiery comments on tuesday at a press conference at trump tower after that the president tweeted saying it was his idea to disband the council. he said rather than putting pressure on the people of the
manufacturing council and strategy and policy forum, i'm ending both. thank you all. after the president's statement we saw a deluge of xheps fr como some of those same corporate executives look at the language some used about the president. we have never seen corporate executives talking about an american president this way. aetna's ceo said i'm ashamed of our president's behavior and comments jamie dimon saying i strongly disagree with president trump's reaction johnson & johnson ceo, the president's most recent statements are unacceptable. small business council president, president trump must recognize the broad criticism he is receiving this president waking up more isolated than he's ever been from the business community, and that's sort of his core audience this is a community he felt comfortable in he surround himself with in the early days of his administration, now a stinging
rebuke from that group >> eamon javers, thank you very much james stewart in the "new york times," such a public schism between a president and business leadership long considered the backbone of republican establishment left corporate historians at a loss for precedent. let's talk more about the fallout between president trump and the business community with us is chuck gabriel from capital alpha partners good morning >> good morning. >> how should the market take this what are the risks for ceos and being so public about their rebuke of president's behavior, actions and distancing themselves from him? >> it's certainly easy for all of those members of those two councils to do it en masse rather than individually it is unprecedented. it's unfortunate because certainly those councils have been more symbolic than really active so far, but they could have been helpful as the president tries to move forward with his growth agenda this is something. >> it's quite something.
i want to see if there's the potential to take a different view in terms of what this might mean for washington gridlock clearly the republicans have their midterms coming up they'll feel some pressure by association with the president, with all of this could that on the flip side force them to think we need to make sure we have some legislative achievements before we go into the midterms and push ahead with the policy agenda more than they otherwise would have done? >> i think that tax reform had already become too big to fail after their miss steps on healthcare you know, it's interesting, some will have to distance themselves from the president for sure. others in a lot of these conservative virtual man cave type congressional districts in the south, their bigger worry is being primaried or facing a primary opponent it's a mixed bag on capitol hill i think we were already well to the point where the president's role on pushing tax reform was
going to be diminished he doesn't seem to focus long on messaging. he can't twist any arms. he is not feared on capitol hill his advisers are conflicted about trying to sell a magic unicorn type of approach to how far they could do with these budget rules it was a big disconnect. lastly he just really is not affording much hope for bipartisanship, which might have been important in the end. in the end, though, the congressional republicans are committed to doing this. they can and probably still will do it. >> chuck, one thing we've been mentioning over the last 12 hours or so that would hurt him is resignations from his administration gary cohn is a name that comes up that might be considering that is the president more protected there? the argument of saying i also think i need to keep a seat at the table in order to offset perhaps the other moral arguments in someone's mind does apply to someone like gary cohn,
where it didn't apply to the ceos, because it didn't get achieved in the strategic forum >> wouldn't you love to see his e-mail traffic if gary cohn were to leave, it would be a direct hit. it focuses on the lower inflation rates giving janet yellen and the fed a bit more room to stay accommodative longer it put less pressure on, if you will, a fiscal put it made the markets more patient. but there's still some expectation that in 2018 we'll get to tax reform. you know, but gary cohn leaving, i think, would be a direct hit to those hopes as well as to the hopes of the more movement on the fifth financial deregulation front, which has been extremely important. >> let's talk about some of those and when it's possible for them to happen also the nafta renegotiation if it's tax reform,
infrastructure, deregulation, trade negotiations which has the biggest impact on the market and which are likely to happen, if at all, in 2018. >> i think the nafta negotiations are going to be not as binary and -- we'll have some occasional headlines but i think that that will all wind itself through fairly constructively the president has to deliver on that issue just because he does owe his election to surprise victories in michigan and wisconsin and pennsylvania with regard to tax reform, at this stage they first have to go through a difficult september, where they have to fund the government and extend the debt ceiling. only after you have done that and finally have buried the hatchet a bit with democrats on how to fund defense and nondefense discretionary spending can you pass the budget resolution that allows you to move tax reform. we don't see the house passing tax reform just in the house
until perhaps christmas, near the end of the year. the senate will come later then you good to conference committee. this will be extraordinarily difficult. as a bottom line, we think what happens here with this trump deflator factor is that it reduces republicans risk tolerances for sort of stretching the envelope and challenging these very constraining budget rules. you know, if you can't really do that, you'll have to live with pure base broadening comprehensive tax reform, a zero sum game we'll see what that looks like in september when the mortgage interest deduction and the concept of changing retirement accounts comes to the fore >> the president finishes this term >> yes i think so whether he even wants to run for a second term, i think we'll all be exhausted at the end of a trump term, i think he'll last >> thank you very much for joining us still to come, exclusive
insight into corporate america's decision to rebuke president trump. as we head out to break. let's check in on futures pointing slower. the nasdaq the laggard, down 0.3% one laugh, and hello sensitive bladder. so i tried always discreet. i didn't think protection this thin could work. but the super absorbent core turns liquid to gel. snap! so it's out of sight... ...and out of mind. always discreet. for bladder leaks.
my pick on cnbc.com. titled "inside the dramatic decision by corporate giants to rebuke trump." this has got reporting from all sorts of different reporters here at cnbc really getting inside the story of how that unfolded the decision by those ceos to disband the strategic policy forum. insights like the fact that ingenuity, marry barra really got the ball bog steve schwarzman keeping the ball going and jamie dimon on monday issued a statement, but didn't decide to pull out and then changed his mind some great reporting there, a fascinating read very much the top story on cnbc.com today my pick is from one of those members of the manufacturing council that stepped off richard trumka, president of the afl-cio, why i quit president
trump's business council i expected this to be all about charlottesville and hatred, which he said was the final straw, but when through a complete rebuke of president trump's policies and attitudes to be clear the council never lived up to its potential for policies that lift up working families we were never called to a single official meeting even though it comprised some of the top business and labor leaders the afl-cio joined to bring the voices of working people to the table and advocate the manufacturing initiatives for our country, that our country desperately needs, but the only thing the council manufactured was letterhead in the eend, jund, just another promise. trumka does spell out early he was a clinton supporter, but he was excited by trump's initial gestures to the american worker,
promises of policies. >> >> it is worth noting with that one line that it wasn't really achieving anything so far. so it disbanding probably doesn't make changes to the policy agenda or the market itself clearly pressure politically on the president. but not really doing anything. s&p 500 is up 1.4% >> unless the market is still holding out hope because republicans are still backing him. either way, if we got tax reform, it will be a bonus to the market people already lessened expectations that it's not likely to happen any time soon >> let's see what happens his confidence numbers small business, investor confidence, business confidence, they all surged after the election on the hope and promise of some of these policy initiatives and changes. does that change and start to weigh on the data? that's a question. up next, what the growing rift between big business and president trump means to the market we'll get a market pro's take when we me rhtcoig back.
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welcome back to "worldwide exchange." u.s. futures pointing to a little bit lower with us is jeff kleintop from charles schwab we've been focusing on the political story and the potential impact it may have on the markets. let's touch on the main market story yesterday, which was the fed minutes. what was your key takeaway >> that the fed still believes in the phillips curve. they still believe a tight labor market is going to lead to some inflation and compel them to further raise interest rates and trim the balance sheet maybe as soon as september. doesn't change our outlook for what the fed is likely to do but a steadfast belief that the old economic rules still apply
>> does it change the view of the ten-year treasury note yield which sits at 2.23, and has been a driver for equity groups, the dollar, everything else in the world in it feels like an anchor of low interest rates is helping this global market rally >> that is a good way to put it. it is an anchor and will remain a fixed anchor for some time our view, kathy jones our fixed income strategist at schwab believes we will remained around 2.25% for quite a while. we have ecb results out in a little bit andmore broadly you view of the dollar >> we think the dollar will stabilize. i think the ecb minutes will be important but it's not entirely about strength in the euro
the your ro heuro has been stroe dollar has been weak for a variety of reasons the longer term issue is is the fed committed to raising rates if the fed hikes rates later this year and next year, it's likely to see the dollar move higher from where we are >> we've been having this debate all morning about how much is priced in to the market as far as the trump agenda, tax cuts, infrastructure spending, deregulation and what that means after some of the biggest ceos have walked away thefrom this president. are there implications >> stocks have been tracking analyst earnings estimates whether for the s&p 500 or globally all year. they move in lock step with earnings it has not been hoped for changes, which would influence earnings markets not yet pricing it in,
but at the same time, you know, we need additional fuel to move higher the basis of earnings for that is better global economic growth, probably not likely to see those tax changes any time in the next 12 months, maybe a next year issue. >> jeff, tech very much in focus. again the nasdaq always the one that seems to be moving the biggest amounts. what's your view on those names? >> we do like tech tech is our favorite sector. this is not a classic value market, it's a growth market and you can still find tech the most attractive effort that points still to the u.s. as a sector and country that moves like the tech sector likely to perform well >> we'll see what alibaba earnings show today. people will watch that it's been a huge winner. jeff kleintop, thank you we are about five minutes away from the top of the hour. the team is getting ready for "squawk box. wanted to check in with andrew ross sorkin for what's coming up
and all of your reporting on what's happening with these corporate defections and whether they might trickle into the white house. >> that's going to be a big part of our conversation. we will break down the timeline of what took place over the past 4 hours when it comes to the ceo councils, what was taking place in corporate america, wall street and the white house alibaba will have earnings we'll watch that we'll talk walmart earnings. we have a lot to talk about. big show on "squawk" manyin a moment >> what do you think the key factor was from the change in heart over the weekend and monday where most ceos decided not to resign, even if they were putting out strong statements rebuking the idea of system of the rhetoric we heard versus making that decision yesterday >> i think the shift was clearly tuesday afternoon, more than anything else. though i think the rumblings began in earnest on monday about
how could we get out what can we do is there something to do by tuesday afternoon the dye, to some degree, you could say had been cast given the comments wasn't just, by the way, the comments made -- that the president made about the violence and the false equivalency issue of the alt-right and alt left, it was also some comments he made about walmart and doug mcmillan's memo that had gone out monday night the idea that the president was going to attack so many of their fellow board members doug a relatively beloved guy on that council nobody was happy about the way the president reacted to ken frazier. and his comments so i think that actually moved the needle more than some people might imagine. >> andrew, thank you very much for that we look forward to much more
good morning you can't quit, you're fired president trump disbanding two business advisory councils, as one was already dissolving. we'll tell you what happened behind closed doors. a market reaction and moves in the dollar as the dow comes off four straight positive sessions earnings alert reports from alibaba and walmart expected in the next hour. we'll bring you those numbers and reaction on wall street. i guess futures are down this morning. it's thursday august s17, 2017, "squawk box" begins right now.
♪ live from new york where business never sleeps, this is "squawk box. welcome back this is "squawk box" where we are live from the nasdaq market site in times square i'm becky quick along with joe kernen and andrew ross sorkin. let's look at the u.s. equity futures. you will see that both the s&p and the nasdaq are down a little bit. nasdaq off by 13 points below fair value s&p futures down by 2. the dow just turned positive, barely the dow has been up four sessions in a row. it's been up 14 out of the last 17 sessions. now back negative. it's right around the flat line. we'll see where things go as we get closer to the opening bell in asia overnight, japan did see some weakness. japan ended up closing down by 0.1% hang seng down by a quarter percentage point