tv Worldwide Exchange CNBC April 3, 2018 5:00am-6:00am EDT
tech, tariffs and trump. those are the three ts that continue to impact your money. futures trying to hold steady now after yesterday's big selloff. the trillion dollar question, is the worst over for stocks or is there more selling to come red arrows in europe and asia we go worldwide with updates on markets everywhere. and gm slamming the brakes on sales numbers, saying it's done telling us how many cars it will sell every month. it's tuesday, april 3rd. "worldwide exchange" begins right now. ♪
♪ >> all right good morning welcome from wherever in the world you may be watching. i'm brian sullivan thank you very much for joining us on "worldwide exchange. i don't know if we're doing dancing today but the markets trying to correct a little the five big things you need to know right now are market and money related. 458-point selloff for the dow jones industrial average yesterday. those three major indexes are negative for the year. the dow is 11% off its highs there may be some relief stock futures are up, but fair value indicating that the dow will open slightly lower today down about 19 points for the indicated open again, very early but something to watch bond yields ticking up just a bit. ten-year at 2.75%. that's also indicating perhaps a
bit of tuesday calm in the markets. we are worldwide exchange. as always we have full global coverage for you we'll get to joumanna bercetche in london. let's check in with nancy hungerford in singapore. nancy? >> brian, most markets here did finish in negative territory if you're looking for positive news to get your day going, i can tell you it wasn't all bad it could have been worse many of the major markets did pe pare steeper losses. the kospi well off its lows of the session. and the hang session, a late-day rally here, gains at least, closing higher by 0.3% a lot of that was down to financial strength at one point the hang seng was at a seven-week low. let's show you the big names that were weighing to the down
side primarily tech names we're looking at big heavyweights including nippon over in japan. samsung electronics in south korea. let's show you some other apple suppliers. broadly some of these names have been hit over reports that apple could use its own chips by 2020, bringing more production in-house some suppliers weighing to the down side. keep in mind trade fears are still in focus and that hits these stocks as well back to you. >> now to europe where stocks are selling off, but maybe not as severely as some might have thought given the markets here yesterday. you ha joumanna bercetche with a look at how europe looks. >> it's not as gloomy of a peck
picture as we got in the u.s., but it is still gloomy europe was closed for trading yesterday. you can see ftse 100, the uk blue chip is down 0.8% about two hours into trading already. xetra dax is down 1.4% here we had some weak macro data coming out of germany. weak german retail sales and weak manufacturing numbers the macro here is weighing cac 40 is also down 0.9% the italian index has been a focus of many peoples attention given election results that's down 0.11%. let's switch to sectors and see where the declines are coming from only one sector in the green, oil and gas, up 0.3% to the down side really no surprise industrials down 1.7%. autos down 1.6 technology down 1.5% similar theme to what we saw in u.s. trading yesterday but perhaps not as bad back to you. >> thank you very much outside of stocks, here is
how things look this morning oil is slightly higher we are not seeing a big change in the euro/dollar 1.23 for the euro/dollar gold is down a bit to 1,341 per ounce. and watch the cryptocurrencies, even if you are not a bitcoin believer, but many investors are starting to see bitcoin as leading indicating for how the stock market does. bitcoin up now, 7,365. now to the news. president trump's top trade adviser weighing in on yesterday's selloff. here's what peter navarro told cnbc yesterday afternoon >> the market is reacting in a way which does not comport with the strength, the unbelievable strength of president trump's economy. everything in this economy is hitting on all cylinders because of president trump's economic
policies we cut taxes, that is stimulating investment in a way which will be noninflationary that will drive up productivity and wages. mick mulvaney at omb is orchestrating one of the best deregulation events since the reagan administration. that's supply side benefit to the economy that pushing inflation down and growth up >> let's get reaction to that and your money moves, larry mcdonald editor of the bear traps report larry, i know the headlines all say trade related selloff, but is it? netflix was down 5% what does that have to do with trade >> it's a massive sector rotation at one point technology is nearly 20% of the s&p. the oil names are down less than 7% of the s&p in terms of market capitalization what's happening is you're seeing a rotation out of
expensive growth into more value. i think that the oil names would be the place to be here in the second half of the year. >> which is interesting given that oil is, indeed, our greatest export and import with the two countries, mexico and canada that we are renegotiatin with nafta why you are optimistic oil and oil stocks >> the stocks are the cheapest relative to the modity itcommon about a decade number two, interest rates have come back down on the 30-year, the long-term financing has come down the chances of a big m&a boom in what i call the exploration companies, thexop etf will benefit from merger and acquisitions big oil companies will be forced to go into attractive mergers and acquisition period here in
the next 18 months >> do you think that when we look at trade, tariffs, we use those as reasons for the selling, that those are why people are hitting the sell button or to your earlier point is this just i made a lot of money in technology there's a bunch of stuff going on from a headline perspective tech controls the market, about ten stocks run all the etfs and we're seeing those get sold and everything is coming with it >> you think about the midterms. president trump, his objective from behind the scenes, everybody we talk to in washington, they have their eye on the midterms. his agenda is populous he will talk up trade. i think the bark is worse than the bite number two, you have to understand that the 100 largest companies in the united states control about 82% of the profits today versus, say, 20 years ago it was 50% of the profits.
so president trump quite smartly is playing to that middle base and the blue and red states and middle america and he is playing to his base, talking up this populous agenda against companies like amazon. so that one-two punch is driving this rotation. >> isn't that the risk this is a president who loves looking at the stock market. amazon and many other big technology companies are not only massively market cap weighted, that makes them important to the other markets as goes five or ten tech stocks so goes everything because they run the etfs do you think president trump should dial back on his commentary about amazon even if he doesn't like jeff bezos or the company because of the market's perspective he wants a dow that's up, i imagine. >> that point, you made is very wise this passive evolution has been so powerful. to your point all th
etfs, they all own the same stocks maybe the white house is not thinking about that. they're thinking this will ab smooth transition from expensive stocks into value that will kind of even off the base but you're right, that risk is there in the short-term. but i think he's looking at by year end we'll have a rotation out of big tech into value and energy >> can the markets handle that when i look at all these etfs and massipassive investments, ae top ten holdings are facebook, google, microsoft, all the hem funds own them can the overall market go up if big tech goes down i believe it's the only question that matters in equities now >> really for right now the market cannot. that's why we have broken -- yesterday we broke the 200-day moving average we broke key technical levels,
this trillion dollars that's moving to passive asset management has been too much too quick. the overall market can't go higher unless that rotation takes place. that rotation takes time >> i wonder if actual human beings, real fund managers will come in and make buying decisions today. larry mcdonald, have a great day. >> thank you. something interesting out of detroit. general motors says after today it will stop reporting monthly auto sales numbers and instead issue quarterly results. gm says the monthly numbers don't accurately reflect the overall market they will continue to provide monthly data to the federal reserve. let's get a check on other stock and corporate stories. kate rogers is in with those >> good morning. keep an eye on 21st century fox today. the company is offering more concessions to uk regulators to win approval for its bid to buy
the rest of sky. they are looking to separate sky news and guaranteeing editorial independence or sell sky to disney shares of intel falling sharply on reports that apple could swap out intel ships from macs in favor of its own processors a potential switch could add 20 cents to 25 cents per share to apples earnings cbs plans to make an all-stock bid for viacom sources telling cnbc that as part of the offer cbs ceo les moonves would stay on for two years. switch reporting a bigger than expected fourth quarter loss revenue for the company rose 21%. that beat forecasts. switch expects revenue this year of 423 and 4 $40 million, that' within the range of analysts estimates. sources say walmart is in talks to buy pillpack for less
than $1 billion the startup helps manage prescriptions by packaging prescriptions together and delivering them. >> walmart on a spending spree lately kate rogers, see you in a bit. we are just getting started on this tuesday. good morning europe also returning to work today following the long easter weekend. and futures indicating a flat to slightly down open orderly right now but there's a long way to go. here are some of the international markets that have taken big hits this year we are "worldwide exchange" and we will be right back. - anncr: as you grow older, your brain naturally begins to change which may cause trouble with recall. - learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers. - anncr: prevagen is now the number-one-selling brain health supplement in drug stores nationwide.
sure. still yes! xfinity delivers gig speed to more homes than anyone. now you can get it, too. welcome to the party. ♪ i see a beautiful shot of the london eye 10:16 in london. 5:16 on the east coast thank s for watching from wherever in the world you may be european markets opening this morning after a long easter weekend. they are down, but the selloffs are not as bad as one might expect given the 458-point shaving we got yesterday on the dow. uk market down 0.7 % germany down about 1.4%. let's get more on what's happening overseas and how they're reacting to our news
peter siegel from "the financial times" joins us this morning i have to say that when given what happened yesterday, some of our viewers waking up in the states might think i thought europe would have been down more what's your reaction to why your reaction is fairly muted >> two things here let's remember "a" there are not tech companies in europe the size of a google or amazon >> bingo >> that's why they pay me the big bucks. the other point i want to make is the ftse in london and the dax in germany, they have not had the upswing we've seen on wall street. because they don't have the techs. there are other issues going on here brexit, the ftse has been the biggest underperformer in the global indexes anywhere because of sterling being low and hurting exports for british companies. but also general economic concern for the ftse 250 london has already been an underperformer not much further for it to fall.
germany is down the biggest in europe germany not a huge tech company, the big siemens, all the big industrial exporters, they're focused on the u.s./china trade war issue. it's a bit of nervousness there. there's a sell yaufr because of the chinese slapping the americans with the counter tariffs over the weekend we are look ning for the trump administration to announce the lines they'll go after on chinese tariff issues. >> peter, where does europe stand in that? when we talk about tech and trade, most of this seems to be asia centric south korea, by the way should have a harder hit when it comes to import of steel restrictions in america than europe where does europe stand in a trade war or trade battle scenario passive observer
>> south korea and japan are big exporters. let's not forget, the brits, the germans and french are also big steel producers. they will get hit. i mentioned thyssenkrupp, mittal is big in the uk it's not so much they're worried and fail will have imports into the u.s. and even into china it's the growing sense that there is tariff barriers going up everywhere. protectionism is rising. germany in itself is not big enough to carry the rest of the world along with it to make sure that doesn't happen. so germany is the big industrial manufacturing center of europe they are concerned they tried to use some diplomatic muscle with the trump administration it has not worked. they're not a bystander. they have built their economy on an export model and they're nervous about it
>> the company you referenced is the perfect example of arcelormittal, headquartered out of london. they have 14 big steel plants in the united states. truly a -- with indian origin, truly a global company are they one of the companies to watch around the world as a litmus test for this whole thing? >> yeah. again, if you look at european shares, they also have plants in the netherlands as well. if you look at the european s r shares, this is not a tech play. they have hardware, s.a.p. and other deep into the internet kind of companies, but not the social media companies if you're looking for the knock-on effects of trade, that's where you look to europe. they built their economies on export, britain and germany in particular that's where you need to watch that's where the nervousness is.
the tech issues are interesting here in the uk and europe. the regulatory environment we have to watch as well. the eu has been aggressive in terms of regulating data, privacy issues where we're watching it will be on the trade side. that's not the story of the markets today, but probably later this week. >> you made an important point at the top, you guys over in europe do not have the big tech companies which about ten companies control about the fate of 3,000 other stocks in the market peter spiegel, thank you very much still to come, we're tuning in to the ipo market spotify finally becoming a public company but in an unusual way. and wildcats go wild partying and pole climbing in philly as villanova wins another ncaa men's basketball title. as we head to break, here is the national weather forecast from
bill karins. good tuesday morning to you. brig storm syst big storm country system in thee of the country will need thunderstorms for some 48 million people at risk. a very large severe weather impact east tecxas, louisiana, some enhanced rain, but the orange area is where we could see tornadoes. that's memphis, nashville, indianapolis, columbus, everywhere in between. how about this another snowstorm is unway stde starting in south dakota you could get another 4 to 8 inches of snow no problem travel-wise for the west coast the southeast you doook lnice, too. more "worldwide exchange" when we come back
but i'm not standing still... and with godaddy, i've made my ideas real. ♪ i made my own way, now it's time to make yours. ♪ everything is working, just like it should ♪ probably not a lot of work going to get done in the suburbs of philadelphia today. villanova dismantling michigan to win the college basketball title last night hardly a nile biter we're told the wildcats led 37-28 at the end of the first half. they never had to worry after that final score 79-62. by the way the second national
title for villanova in the past three years cementing their title as the best program right now in all of college basketball congrats to all of our villanova viewers. philly getting used to titles lately. as expected fans did what they do in philly, they flooded the streets. villanova students gathered cheering, setting off fireworks. despite the predictable precaution of greasing lying poles, some intrepid philadelphia fans found a way to climb the light poles in philadelphia and around the suburbs. be careful up there. let's check on what else is happening outside of the world of business. fill lphillip mena has more. >> all right vladimir putin may soon pay a visit to washington despite a number of investigations into his meddling into the 2016 presidential election.
the kremlin announcing that president trump invited the russian leader to visit the white house for a summit this comes during a time that some call the worst relations between the u.s. and the russia since during the cold war. judges will be required to clear 700 immigration cases per year in a move intended to speed up deportations. the quotas are expected to take effect in october. a close call wreck caught on camera in georgia. a train slammed into a tractor trailer after it got stuck on the rails. officials say there were only minor injuries there back to you. >> that's a good-news story. by the way, it's going to be like 90 in tempe today we should do a show from out west >> let's head out there. >> phillip, thank you very much. we'll see you soon more to do on "worldwide exchange" on another cold
morning here u.s. stocks facing the biggiest impact from china's new tariffs. and a look at stocks that weighed the most on the dow yesterday. "worldwide exchange" rolls on after this i was in the stone ages as much as technology wise. and i would say i had nothing. you become a school teacher for one reason, you love kids. and so you don't have the same tools, you don't always believe you have the same... outcomes achievable for yourself. when we got the tablets, it changed everything. by giving them that technology and then marrying it with a curriculum that's designed to have technology at the heart of it, we are really changing the way that students learn.
a tariff takedown. a look at specific companies that may get hit the hardest as trade restrictions heat up. and a big test for the ipo market as spotify makes its public debut crank up the play list on this tuesday, april 3rd you're watching "worldwide exchange" on cnbc. ♪ >> welcome back. thanks for being with us from wherever in the world you may be watching i'm brian sullivan here is how your money and investments look now the dow coming off a 458-point slide yesterday. the futures are up for the dow, but the implied open indicating a slight drop. we'll call that in the middle. futures holding up a bit in asia they came off a holiday for most of their markets. they fell as well, but like
europe, maybe not the level and magnitude of drops that one might have expected given what happened to our market yesterday. i think you heard our guest peter spiegel say it best, they don't have the big fang and tech stocks that may drive the market the red on the screen relatively muted given our markets yesterday. your big story is trade. and president trump's top trade adviser, peter navarro weighing in on yellsterday's selloff sayg the market reaction may be out of touch eamon javers has more on this story. >> good morning. peter navarro and the trump team think what they're doing on trade is having american corporations backs in a global trade war that pre-existed the trump administration they put it in the context of simply fighting back against what they see as unfair trade practices by china despite those concerns that we saw in the market yesterday about the president's trade maneuvers, about the president's
maneuvers and rhetoric on amazon, peter navarre came on cnbc yesterday to say the market is getting it wrong. >> everybody needs to relax, look at the chess board here look, this economy is just strong it's not just the u.s. economy we have this synchronicity globally where europe and asia, latin america are doing well moving together on this. that helps everybody again, relax >> the message from the white house is to relax about the president's trade maneuvers. so fascinating in the moment yesterday brian. we had larry kudlow going over to the oval office for his first meeting with the president officially as national economic council director he's been an opponent of tariffs in the past though he shifted his view to see the utility of tariffs as a negotiating tactic globally he was accompanied in that meeting by gary cohn who is an
opponent of tariffs. it would be fascinating to know what those two men said to the president on a day where we saw the market down more than 700 points at one point intraday what advice was the president getting and how much market pain is the president willing to suffer here? we know he looks at the dow and the market as a measure of his administration's success is he will be to take pain on the market to achieve his political and trade agendas. >> two other questions number one, can you and i, we have a market an '80s style shirt that says peter says relax. you get the reference. we'll make those we'll make millions. that aside, do you think the president understands what his tweets are doing to amazon amazon and the big tech stocks control this market. if trump is hurting amazon, do you think his administration understands that he may be damaging the dow with which he
looks at so closely? >> the question is what does he value the most does he value the dow or does he value his grudge with jeff bezos? the president seems to over the past 24 hours or so want to exorcise that judge, take a swing at jeff bezos, the way to do that is through amazon's stock price. the president is very clear-eyed about what he's doing and the effect it has on amazon. the question is whether there's substance behind it. that's what we can't get an answer to. i talked to a bunch of people at the white house yesterday trying to figure out is there some sort of renegotiation of amazon's contracts with the federal government coming. is there some sort of tax he'll propose? where is the regulatory teeth behind the twitter rhetoric? you can really find answers to that in the white house. this might be the president venting here letting off steam and when the market figures that out, amazon
might snap back to where it was. for now the president seems to be enjoying flexing his muscles here >> he might not enjoy it if the market keeps falling the dow does not include amazon. but there are 131 etfs that have amazon in their top 15 holdings. amazon is hugely important to stocks and companies that it has nothing to do with we know our friend larry kudlow understands ternals of the market. if ten companies control the fate of a thousand, you may want to lay off those ten companies >> i think some people in the white house understand that. i think the president understands the effects his tweets have on amazon itself, if not the broader market but the question is really what the president values what does he want to achieve here it's clear that he has a beef with jeff bezos.
he wants to take it out through this twitter rhetoric on amazon and he knows the impact that has on amazon's stock price. and the question is what does he value more we'll get the answer to that >> i think we will eamon, i like the beard. looks good >> thank you i'll keep it for a couple days >> probably due to lack of sleep. no time to shave >> i was on vacation, i can't compla complain let's stay with the global trade story. concerns about more revaltation fr from -- retaliation from china on other trade partners. seema mody has more. >> china trade worries has been a big part of the market selloff. food producers were under pressure yesterday after china said it was raising import duties on american meat and fruit products shares of hormel foods fell 6% technology has been at the
forefront of these trade worries over fears that the administration will unveil new tariffs that could have a negative impact on tech, specifically the chipmakers. according to fact set qualcomm, texas instruments and micron tech derive over 30% of their sales in china another part of the market to focus on is the u.s.-listed chinese stocks alibaba, jd.com have significantly underperformed the broader market with alibaba down 17% over the past one month. despite tensions between washington and beijing, the ipo market has remained strong eight companies raised 3$3.3 billion in the first quarter the most in three years. analysts say that should continue brian, bottom line, china is intertwined in u.s. financial markets, perhaps in more ways than we have seen.
joining us is art hogan from b. riley fbr we know why amazon is down we know why facebook is down i guess what is the role of trade really in this market? is this a trade story as a lot of headlines say or technology is out of favor and tech is too important to the overall market type of story? >> i think they're intermingled here the trade story is much more important. more important than the china story and whether this recent round of tariffs turns into a trade war with china understanding that $3 billion they announced yesterday or over the weekend is in retaliation for our tariffs on steel or aluminum that retaliation and tit-for-tat will get larger as we move forward. the real story about trade is the renegotiating nafta. that's much more important to us
in the near-term our two largest trade partners are canada and mexico. not getting that right is much more important to this market. that's what we're missing in the narrative around china, which is a large story. getting nafta wrong or not getting good news on this renegotiating process is the worst news luckily the administration came out with an announcement saying they want to have a tentative agreement in place, so that can be announced in peru next week >> the question we've been asking a lot, can the dow or the s&p 500 go up? can viewers that own the sp spy etf, can they go up if amazon, face goobook and google continue to go down? >> probably not. we can get to a point where google and facebook and amazon
find a level where they stay, very much like microsoft did in the '90s for a decade and then move forward and have new leadership i think there's an opportunity for financials to take over leadership from technology here for a period of time if the rising interest rate environment plays out. to the extent that technology doesn't have to be leadership, it's leadership because earnings grow faster then any other sector we will see that technology probably leads there again. until we get to a point where the household names and technology, this market will have a difficult time finding its footing. will it take more pain for the overall markets for energy and financials to become big enough, important enough and heavily weighted enough again that they can take ownership and control of the market? >> probably. we are in a corrective ro social
security process. corrections last historically for a couple hyundais we talk about this being the second day of the second quarter. it's not like we've been in this process, though it feels like an extended period of time, it's weeks not months along that process we'll create some bargains. everything trades. everything is correlated all technology sold off and probably not for the right reasons. >> art, are there enough actual human beings, active mutual fund managers to come in and stem this, say these are bargains now or are computers 100% in charge? >> absolutely not. i think -- i certainly think when you have this correlation on the way down and these corrections, investors see i'm
getting punished in my etf because of three names, facebook, amazon and google are selling off. to the extent that gets to the point of peak passive and active management has a renaissance, that's going to happen in real time over the next 12, 18 months for sure i think that being -- looking at the news saying what does this have to do with bristol-myers or something -- >> correct >> -- to the extent this may be the point in time where we say active management will be back in vogue stock picking is the new narrative. that's something in the offing >> i love it if nobody else has coined peak passive, we'll put that on you >> thank you >> long day ahead for you. take care. a big test for the ipo market spotify making an unconventional debut as a stock there's a magic number to watch. it's not three, but we'll tell
my mom washes the dishes... ...before she puts them in the dishwasher. so what does the dishwasher do? new cascade platinum lets your dishwasher be the dish washer. three cleaning agents dissolve, lift and rinse away food the first time. new cascade platinum. 5:46 in new york good morning yesterday at this time it was snowing heavily. thank goodness today it's not. speaking of new york city, if you own real estate in manhattan, just turn the volume down you do it?
manhattan apartment sales absolutely plunging last quarter. new real estate data shows the number of co-op and condo sales in manhattan dropped nearly 25% during the first quarter compared to the same period last year that would be the biggest annual decline in sales in more than nine years a lot of people attribute that drop to the tax law changes which makes it more expensive to own real estate in some of these blue states. spotify set to make its public debut today. the company will ipo on the new york stock exchange in a direct and unusual listing. the nyc setting the reference price for shares at 132. let's bring in john martinko from drexel hamiltohamilton it's really early in the united states let's not get too deep in the weeds. we said listing price.
we're using words like reference pricing. this is not -- we'll call it an ipo. this is not an ipo, is it? >> no. i wouldn't call it an ipo. >> it's an ipl, initial public listing. >> it's the first time that registered securities will be traded in the public market. >> in plain english, what does that mean? how is this different than a facebook ipo >> in a facebook action, there's a capital markets process where the company goes on a road show, they go around to institutional investors and tell their story >> convince people to buy the stock. >> a lot of it is discovering of anchor tenants, and who will be long-term holders. today you're seeing since 2011 "f" series round of investing, they have their investor base. today in this registered listing
of securities which is 55.7 million shares have been registered today, they will hit the market sometime midmorning >> there's a hugely important story in the "wall street journal" about the rise of private markets. when i started anchoring business tv there was about 7,000 u.s. listed stocks there's about half that. that private equity has taken the place of the public markets. spotify the perfect example of how private marketing are trumping the public markets? >> i think the term is unconventional to go this route. i don't think you can still trump the public markets you need your institutional base you'll institutional accounts will have to come and build positions via the private market it's rare for spotify to have so many investors and so many rounds of investing. >> is this a case of where the
private investors, there's a lot of them, that they are just transferring their money to the public markets is this a stock we want to own or is it spotify just making that exit strategy these private investors demand >> it's not at the expense of others it's a stock you want to own if you're in that sector. if you're in the media tech sector and you have comparables, you want to build a position today. laying the price off is a misunderstanding and misconception. the investors today will be issuing 55.7 million shares. you're seeing the free stockof the 178 million outstanding, those are still restricted securities in those private transactions you're talking about. they still have to follow the rules of restricted stock going forward. >> we'll see how this goes
appreciate your insight, john. if you think that stocks are having a bad year, there's one stock or one company that is a real pain. it is your rbi, random but interesting stat of the day when "worldwide exchange" returns prestige creams not living up to the hype? olay regenerist shatters the competition. big hype. big price. big deal. olay regenerist hydrates skin better than creams costing over $100, $200, and even $400.
it's 55 degrees in los angeles. it's 3:00 in the morning there there's some planes. i don't know if they're taking off or landing l.a., see you soon, i hope thanks for watching "worldwide exchange." fe futures are holding up well given the 450-point slide in the dow yesterday, futures are up. the implied open is slightly down what does that mean? we don't know how the market will open but it looks flat. we're seeing a bit of calm
today. michael, we're seeing a lot of market action. trump talk, tech talk, trade talk where does the overall u.s. economy factor into this is the underlying american economy and maybe corporate earnings still strong? >> yes, it is. we're in a bit of a soft patch in q1. we're transitioning from strong rates of growth in the fourth quarter. we had a solid rebound in auto sales following the hurricanes the tax plan will follow in q2 we're in a soft patch, but beyond that the underlying state of the economy looks good. we're worried at the moment of what too much anti-trade might do because it cuts against other policy stances what is more important, the global trade scenario or is it
perhaps to your point the tax policies we just did a story that new york city apartments and condo sales fell 25% the blue states make up a third of u.s. gdp. >> right there was some bank lending data that was released last week that goes unnoticed or under the radar, but a large drop off in demand for residential mortgages. system of that is showing through in new york and other areas. the tax plan should still outweigh the anti-trade measures put in place as you mentioned earlier, it's about tiit-for-tat, where does i go from here and does it create an environment of uncertainty and a pullback and hiring across the board slows. if we reach a point where anti-trade policies are a problem for the economy, you may see hirings slow across the
board before particular sectors are affected by anti-trade policies it's about confidence and the view of the market overall the equity market is a good barometer. >> how important is the adp number tomorrow? >> mildly important. we have a problem with that series we don't think it's representative of the labor market we looked at friday's employment report, there my main message is i think 200,000 jobs a month while it signals a robust labor market is the signal that rate rises are coming. the random but interesting stat if you think your stocks have had a bad year the worst performing stock in the s&p over the past year is ge down 56% did you know this? the second worst performing stock in the s&p is baker hug s
hughes, ge. the worst two owned by ge. "squawk box" is coming up next about people. dy people who rely on us every day to deliver their dreams they're handing us more than mail they're handing us their business and while we make more e-commerce deliveries to homes than anyone else in the country, we never forget... that your business is our business the united states postal service. priority: you ♪ you know what's not awesome? gig-speed internet. when only certain people can get it. let's fix that. let's give this guy gig- really? and these kids, and these guys, him, ah. oh hello. that lady, these houses! yes, yes and yes. and don't forget about them. uh huh, sure. still yes!
good morning tech tariffs and trump those are your three ts impacting your money this tuesday. futures are higher this morning. is the worst over or is a bigger correction coming? gm slamming the brakes the carmaker says it will stop releasing monthly auto sales numbers. and today spotify goes public but it's not an ipo we'll tell you why the streaming service decided to go with a direct listing it's tuesday, april 3, 2018,
white s "squawk box" begins right now. live from new york where business never sleeps, this is "squawk box. good morning, everybody. welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with andrew ross sorkin joe is out today, but sitting in with us is kevin o'leary our guest host for the hour is peter boockvar, a cnbc contributor. good morning thanks for being here. let's look at the u.s. equity futures. if you saw the market yesterday, you saw the carnage. it ended the day down 458 points for the dow. the s&p off by 60 points the nasdaq was down by 193 points you're talking about almost 2% for the dow. s&p down by 2.25 the nasdaq off by