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tv   Worldwide Exchange  CNBC  June 29, 2018 5:00am-6:00am EDT

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it is 5:00 a.m., here are your top five at 5:00. green arrows everywhere. markets turning positive the dow poised for a triple digit gain futures up nearly 200. breaking overnight, eu leaders hashing out a major deal on migration a live report from brussels coming up. deutsche bank's u.s. unit flunking the second part of the fed's stress test. nike's big bounce. the foot wear company stompin i expectations. and why weather could be worrisome for the housing market it's friday, june 29th
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"worldwide exchange" begins right now. ♪ all right. good morning good afternoon good evening from wherever in the world that you may be watching i'm brian sullivan thanks for watching "worldwide exchange." i love giving good news on a friday look at how the global markets are setting up dow futures in the green remember yesterday, of course, the dow futures totally changed by the time the market opened. either way right now we're up 184 points the bond market not doing a whole lot. stocks rising everywhere around the world today. let's check on the asian markets first. they're doing well the japan nikkei the worst of the three. look at the shanghai, up 2.2%. that's one of the best moves in a long time. in europe, a similar story not only green on the screen, but a lot of green
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big percentage moves we're seeing the dax in germany up 1.5%. we'll have more on the money and the broader markets in a second. first let's focus on the finals. deutsche bank flufrnking the u.s.'s stress test leslie picker has more >> deutsche bank was the one bank that did not receive approval to move forward with its capital reserve plan the fed said that goldman sachs and morgan stanley will be limited in returning capital to shareholders the fed gave them what's called a conditional non-objection to their capital grounds, a middle ground to pass and fail, but that means they need to keep their current distribution levels rather than raising them. goldman and morgan stanley were
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hit by a one-tile capitme capitl reduction due to the tax plan that was passed. db usa failed to receive a pass due to material weaknesses in capital planning of those banks that garnered approval, jpmorgan raised its dividend by 43% and acknowledged a $27 billion buyback program. wells fargo announcing the largest buyback program at 24$2. billion. citi raised its dividend by 41% to 45 cents a share. >> so there is a middle ground, almost if you get a report card, you get a "p" or a pass, or do not pass so there's a purgatory, middle ground there between yes and no? >> basically what that does,
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that conditional non-objection, it's a middle ground but it accomplishes the same thing as failing these tests. you can't raise your distribution you can't return more capital to how old shareholders in the form of dividends and buybacks, which accomplishes the same thing as a failing grade without the black mark on your record. that's -- according to senior fed officials we spoke with, that was the rational for giving them this middle ground. for state street they believed it was something that could be solved quickly, and something that state street is on the road already for solving. for goldman and morgan stanley, because of the tax plan in december they figured that since it's a one-time thing, they'll give them the benefit of the doubt. >> called a cno, conditional non-objection. every day we learn something new. >> every day a new acronym >> thank you very much for more on the bank's stress tests, we are joined by
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michael rose from raymond james. thanks for joining us. who came out the biggest winners and losers in your opinion >> in terms of the biggest winners, that was a good recap clearly wells fargo with their large buyback, citi group and jpmorgan were among the biggest winners. as we look at regional banks, sun trust, huntington and reamens arereamen regions among the winners. key corp and pnc are among the losers >> who is the biggest loser then perhaps in all of this >> i think in terms of the biggest losers, goldman and morgan were mentioned. that was not really a surprise given last week's stress test
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results. so i don't think the market took that as a surprise you know, weaker results, we view stat stree street, they we given the new acronym that you pointed out, and key corp used their mulligan earlier, and that was largely anticipated given last week's results. >> i'm still trying to understand that cno, conditional non-objection. i've been doing this job a long time i never heard of that. what does that mean? if you pass or fail, sometimes you could be close to farling or close to getting an "a." what does that mean? >> it's a little confusing the way it's worded. basically it means the company has to resubmit their process. there's two portions to the test the quantitative portion and the qualitative portion. so, you know, just the way to think about it is the bank is
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going to have to resubmit the plan because of some problem either internally or one of the capital ratios fell below the minimum level under the severely adverse scenario it is kind of a purgatory land, but the company will have the chance to resubmit the capital plan in past years what we've seen is most banks are typically approved for their revised capital asset distribution >> so do we view it as a positive, a negative or waiting to see if i own a bank stock, and my bank gets a capital non -- or a conditional non-objection, do i sell the stock do i buy it? >> it's more negative than positive, but putting this year's stress tests into context is important so this is an eight-year c-car and we're at or above pre-cycle
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levels 7 of the 13 banks that raymond games following are over 100%. as you think about c-car this year and moving forward, next year it will be a much smaller test the test becomes smaller but as you think about this year, we are at or above pre-cycle levels for dividends and buybacks whether you pay out 90% or 100%, it almost doesn't matter, it's largely expectations >> michael rose, thank you appreciate it. >> thank you do not miss our exclusive interview with deutsche bank's ceo, christian sewing. a lot to talk about with one of the most troubled banks in the world. that's later today on cnbc. shares of nike skyrocketing. the company's earnings beating expectations investors like what they heard from the company landon dowdy has the inside
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take >> nike's fourth quarter earnings and revenue topping analysts forecast, the company posted its first sales increase in north america in a year nike announcing a new four-year $15 billion stock buyback program sending shares up about 10% in extended trading to a record high. nike has benefited from the launch of new products and selling direct to consumers through its stores and websites while partnering with amazon that helped cushion the blow from bankruptcies of retailers such as sports authority nike had eight launches in the quarter. sales rose 3% in north america, 10% in europe and the middle east, and 25% in china in a statement, the ceo said our new innovation is winning with customers driving significant momentum in our international geographies. nike made no mention about the corporate culture scandal that surfaced this spring and led to the exit of about a dozen executives nike is up more than 25% this
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year, and the third biggest gainer on the dow. you could say the stock is on a run. >> you could say that. we would never say that at 5:09 in the morning >> i just did. disney turning up the heat on comcast disney and fox set a new date for their shareholders to approve disney's $71 billion takeover of fox assets investors will vote on that deal july 27th. the move and speed of it ups the pressure on comcast to decide whether or not it will raise its bid and come in with a new bid for 21st century fox. novartis shares rising after it announced they plan to spin off its alcon eye care device unit they also lufrnlg elaunched a $n stock boy backe. and synnex is buying
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convergys for $26.50 analysts say synnex shares are likely down this morning because the company also reported earnings last night and weaker than expected current guidance is what they gave. investors in kb homes should be happy this friday shares are rising after the company's earnings and revenue beat the street. the average selling price rose 4% during the quarter. we are just getting started on "worldwide exchange." on deck, a migration milestone eu leaders wrapping up a marathon overnight meeting and they ended with a break through deal. and it's mystery chart time. all right. it's almost the end of june. can you guess the single best performing stock in the s&p 500 for the month? that's a good looking chart. who is it? guess and we'll give you the answer later on in the show.
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happy anniversary dinner, darlin'. can this much love be cleaned by a little bit of dawn ultra? oh yeah one bottle has the grease cleaning power of three bottles of this other liquid. a drop of dawn and grease is gone. the first survivor of ais out there.sease and the alzheimer's association is going to make it happen. but we won't get there without you. visit alz.org to join the fight.
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good morning welcome back your friday looks good now dow futures indicated up 182 points nasdaq and s&p could also start the day in the green developing news out of the european union summit. european leaders reaching a migration deal break through after a marathon overnight meeting. the news sending european stocks higher willem marx joins us live from brussels with more
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>> it was about ten hours of negotiations overnight there was a text and proposal including a crackdown on smuggling and migration. the italians will be given a number of knew ships ovnew shipe coming days, and money to be spent in african countries, trying to spend money on plans there to improve education, healthcare and reduce the so-called push factors that many economic migrants use as reasons to travel in to europe in terms of secondary migration, the movement inside of the european union, a little less clarity on what this deal means. they will be trying to set up potentially asylum processing centers in third countries not inside the european union. those countries inside the european union dealing with new
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arriving migrants and asylum seekers, not sure how they'll work with one another to take in those people angela merkel under a huge amount of domestic pressure on this issue with her coalition partners back in germany she seemed relatively happy with this outcome a few hours ago >> translator: overall i believe it sends a good message that we came to a joint decision after intensive discussions on a thing that's probably the most challenging for the european union. i'm optimistic after today we will continue to work, even though we have a lot to do in bridging different points of vie view >> the french president just arrived here for more talks after getting two, three hours of sleep one country that will be happy with how this turned out is the italian government they have been responsible for a lot of these quite hard line
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measures they are happy saying around 70% of what they asked for what been given to them. >> willem, should people be skeptical about how this gets implemented? >> you look at the language in this agreement, you could drive a truck through parts of it. there's so many holes in terms of how this will be implemented, especially inside of europe. the big controversies, the big divisions have been around how different european countries cooperate on the sharing of quotas we've seen those quotas exceeded again and again in certain parts of europe. there's not a lot of clarity on how that will change i caught up with one of the leaders a few minutes ago the lithuanian president, she said you have to accept this is a compromise it's not perfect but this is what we have managed to achieve. the fact there is an agreement is a positive step >> all right willem marx live in brussels, thank you very much. let's go now from europe to
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china. china's smartphone giant pricing its hong kong ipo for xiaomi it's a challenging time for chinese stocks amid concerns about a trade war or possible trade war with the united states sticking withchina, the nation easing curbs on foreign investment as part of a movement to show china is trying to open up to outside investors. eunice yoon has more on this story. >> thank you very much the negative list is basically a list that lists out all of the areas that are off limits to foreign investors. this list which goes into effect next month has narrowed the sectors from 63 to 48. that includes lifting restrictions on serving and mapping, ship building, power grids and some crops
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it has changes in finances and autos. in finance, china will raise the limit for certain firms from 49% to 51% for wrought tautos, companies cy own their businesses as early as july there are some sectors that are restricted, such as cloud computing, rare earth mining, oil and gas and legal services there are plenty of people here who are not entirely convinced, including the u.s. ambassador to china that this is opening up things the ambassador was speaking at a financial forum in beijing, he said there's a lot of skepticism because china made so many promises in the past the u.s./china business council said the true pace of reform will be determined by the licensing, approvals as well as regulations which have mired and bogged down market opening in
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the past brian? >> eunice, does the trump administration pressure, do you think, have anything to do with the negatives list >> the trump administration officials, when they were here in may, had been urging chinese authorities to present a negative list by july 1st. however a lot of people i speak to here have said they believe that the timing of it all is coincidental because china has been signaling for many months that they were going to be presenting this list around this time >> eunice yoon, thank you. still to come, rising real estate risks how hurricane season could weigh on the u.s. housing market and trending today, stunning images out of bali, a massive volcano erupting there closing off tourist atactrtions. the pictures when "worldwide exchange" returns.
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all right. good morning the sun is coming up over our nation's capital look at that majestic in d.c. news, president trump says that japanese investment firm softbank's ceo, masa son will raise his investment in america to 7 $2 billion, that's 22 billion more than the 50 billion that softbank had
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previously pledged the president made those comments at a ceremony for the new foxconn plant in wisconsin the softbank ceo did make remarks at the event but did not reference the $72 billion figure let's check the other headlines with phillip mena in new york good morning a maryland newsroom is the scene of another deadly shooting five people were killed when a suspected gunman, 38-year-old jarrod ramos, opened fire in the capitol gazette newsroom his bail hearing is scheduled for later this morning. police are now releasingth names of those victims authorities are still investigating a motive. nearly 600 people were arrested in washington, d.c., mostly women as they staged a sit-in at a senate office
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building in protest of president trump's immigration pollities a -- policies and family separations. and tsa warns that today may be one of the busiest travel days ever as we head into the fourth of july holiday aaa is estimating nearly 47 million americans will be traveling. officials say if you are going to fly, you should really get to the airport early. now a group stage finally over at the world cup colombia needed a win to keep their party going. lucky for them, this skied over everyone to get into the back of the net. colombia eliminates senegal to advance out of group "h. and england and belgium. many thought the loser of this game would be in better position to win the tournament. apparently this player did not get that note after scoring this for belgium. play resumes on saturday with
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the knockout round of 16 brian, back to you >> england threw that game, they didn't even try. it was a disgrace. england will lose to colombia. no momentum. didn't even try. >> even without james, you think so >> they will lose to colombia, they didn't care momentum matters >> you heard it here by the way, i love england great state. what's going on with oil the ceo of an oil field services company, canary llc based out of ben ver is her denver is here and what uber just did that could up your movie ghnits this weekend. "worldwide exchange" is back after this
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happy anniversary dinner, darlin'. can this much love be cleaned by a little bit of dawn ultra? oh yeah one bottle has the grease cleaning power of three bottles of this other liquid. a drop of dawn and grease is gone.
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you have got a friday rally. dow futures pointing to a nearly 200-point pop at the open. oil prices holding at p 13 1/2-r highs. it's so hot in parts of europe right now -- how hot is it a roof is melting. that's a true story. second half of the show starts now. ♪ we're in new jersey. got to play bruce springsteen at least once a month i think it's a law dow futures up nearly 200. get you more on that, for now a
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check of what's hot on the dot landon dowdy has more. >> breaking overnight, eu leaders hashing out a major deal on migration all 28 leaders signing off on a slew of new measures focused on strengthening external borders and internal controls. european stocks are rising on that news. deutsche bank's u.s. unit failing the second part of the fed stress test last night this is thanks to what regulators call widespread and critical deficiencies in the bank's capital planning and controls don't miss wells fargo's exclusive interview with christian sewing this morning. and shares of nike soaring this morning after beating expectations on top and bottom lines and posting its first sales increase in north america in a year. they announced a four-year $15 billion stock buyback.
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>> thank you. it could be a good last day of trading for june. dow futures are up nicely. the dow indicated up 200 points. yesterday we had a futures move that turned out to be wrong. still we're up 167 points for the dow. here's your stat of the day. if we finish up more than 0.8%, june will be positive. you know why right now we're down 0.8 % for the month. so there you go. do the math. what's happening this month? oil. oil has had a heck of a june crude oil up nearly 9% for the month. right now down 0.31% what is in store for oil and what does it mean for your money? let's bring in dan eberhart from canary oil we know these ducs, drilled but
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uncompleted. you will hear that term, there are thousands of them across america. if oil prices keep going up, will we see your industry start to drill more? ultimately then sending prices back down? >> yes i think we'll drill more we're in the process of drilling more there's a tight market developing i think there's not a lot of spare capacity from opec i think prices are headed higher >> how high? >> i don't know. i think we could be in the 90 to 110 range to exit 2018 >> oil prices? >> brent >> 90 to 110 >> yeah, brent >> that's the highest estimate i heard ever why are you so wildly bullish? >> i don't think it's wildly bullish. if you look at fundamentals, you can see opec last week announced a million barrel nominal increase, given some countries don't have the capacity, so 650 to 850 barrel increase the demand increase for the year
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alone is 1.4 million barrels you couple that with declines in venezuelan production and a tightening market, you have supply shocks like the sin crude out of canada and other things like that develop over time. there's very little excess supply to mop that up. >> wow 90 to $110 for brent that would still make wti crude $89, 85 bucks. >> low 8 0s i think that's where we're going. we're on a knife's edge, there's not a lot of spare capacity. >> if your industry, you know, starts to kick in because prices go to 80, they'll start drilling more there's the old joke, the only cure for higher prices is higher prices people get greedy and pump more.
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>> it's a cycle. >> where are we in the cycle >> i think we're further along i was in midland, texas earlier this week. it's a tight labor market. there's a lot of talk about the pipeline capacity. the takeaway capacity. >> we talked about that a lot. you can pump more oil, but if there's no pipeline, no truck, no frac sand, no oil fields, you can't do anything with it. >> one problems developing now is the takeaway capacity is behind they took a bunch of projects off schedule, off production for pipelines in the downturn in '15, '16, '17, now we need them but they're 24 months away a lot of oil companies if they have not prepaid for pipeline space, they are committed to that >> that goes into your thesis that we can't get more oil out of the permian demand will grow got iran coming offline. libya down 400,000 barrels
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even with the opec raise you think the market will get tighter? >> i think the opec raise is a yawn >> don't say it's a yawn i flew to europe for that. >> it's not a yawn then. >> it was a -- yeah. it's a half step this doesn't even solve that problem. the market is getting tighter. >> can you find workers? >> it's hard we have a great team and a lot of great folks, but we need more >> you have to pay a truck driver 150,000 a year. i'm not kidding. >> not quite that, but we've gotten there in the past in north dakota and we could get there again. >> all right dan, appreciate you getting up so early come see us again. time for the top trending stories. landon dowdy is back >> here's what's hot and trending more than 75,000 people were
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stranded overnight after bali's international airport was forced to close due to a volcanic eruption the volcano began erupting yesterday spewing ash high into the air and endangering planes, tourist activities around the volcano have been suspended. there is no imminent danger for people outside the area. these images are beautiful >> yeah. a lot of volcanos erupting lately >> yes very true. a heat wave has hit scotland temperatures are just too high for a building at a science center the building's roof is literally melting in the sun it's a weather-proof membrane that's melting and the structural integrity of the roof is not in question still you think a weather center would be more prepared to handle extreme weather. >> made of like heat look at that building. made of aluminum foil. >> it's melting. >> i never thought it would be
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hot in scotland ever wherever that is >> the ceo of hello fresh says the company may start selling ready-made meals online that could help the delivery service tap into demand from consumers who prefer not to cook >> lazy. >> they offer some ready made meals and snacks in vending machines and offices, but that's only available in germany now. >> do you cook >> yeah. we're having funonions for dinner tonight >> did you ever wish you could enjoy movie theater popcorn in the comfort of your own home uber eats is partnering with cinneplex to offer home tlif dey of its snacks. it's being tested in canada but there could be rapid expansion if successful. >> sara eisen only goes to the
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movie for popcorn. >> no way. >> yes, way. >> it's gross. think about that, snack delivery >> it's a great business >> just sit there, mr. han, get me a pizza it's on. it's on like donkey kong. coming up, rising risks in real estate. why increasing weather worries could be a serious problem for housing. later on, your second half playbook where you should be putting your money to work. make your money work so you can sit on the couch and order snacks from uber are heading bac. thanks to dawn, rescue workers only trust dawn, because it's tough on grease yet gentle. i am home, i am home, i am home
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♪ a want a friday locket launch you know what we try to do on "worldwide exchange. somebody said i want a rocket launch a live shot of cape canaveral in florida. spacex is launching the falcon 9 rocket and the dragon supply ship it will deliver cargo to the international space station. that rocket is set to launch when it launches, we'll bring you video. you're welcome corporate leaders, if you're looking for a side hustle, becoming a board member is looking more lucrative than it already is a new study finds that director compensation continued to rise with half of large american companies paying their board
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members 300,000 or more last year that's up 300% from 2016 not bad for a job that's four days a year. two years ago this summer a massive rain storm stalled over baton rouge, louisiana it flooded the area, caused billions in damage ironically, batt on rouge is fat becoming a research hub for the study of rising water. in our continuing series, diana olick reports on the project she joins us with more >> that heavy rain was a warning and a lesson storms like that are becoming more common and forcing scientists and developers alike not just to rethink how we build but to reimagine how we live ♪ >> reporter: it was a freak storm. dumping over two feet of rain on
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the baton rouge area swif rivers swelled flooding more than 100,000 homes nearly $4 billion in property damage alone justen aaronworth is ceo of the water institute of the gulf. >> we're trying to be better prepared for the next flood. >> reporter: ironically as the rain came down in 2016, a $60 million project in downtown baton rouge was going up a water research center called the water campus home to the just opened water institute of the gulf. >> there are ways to use the best of science to better prepare, better respond and get assets and people out of harm's way. >> and also to better build. >> and to better build. >> reporter: this as baton rouge is in the midst of a building boom the number of construction permits nearly doubled in the last five years. john davies is a local developer and also ceo of baton rouge area
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foundation, which is helping to fund the water campus. >> if we don't deal with the issue of water rise and the loss of land in south louisiana there will be no south louisiana >> davies claims the institute is already paying off, not just for baton rouge but for communities, infrastructure and economies up and down the mississippi river. >> what we didn't realize but what happened as a result of the floods is that the water institute developed a methodology to predict inland flooding they have the sole model to do that in the country. >> reporter: just next door, another unique weapon in the battle with water. a giant mississippi river simulator, the size of two basketball courts. >> we harness the power of science to figure out how can we build structures, new wetlands and barrier islands that will help protect properties and infrastructure along the coast so when the next storm comes you have buffer. >> reporter: jeff was the chief
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rez resilience officer in new orleans before joining the water institute. >> what happened in baton rouge were more newly developed, and rare areas built on the natural drainage system of the community. >> reporter: it's a risk repeating itself in urban centers anywhere near water. >> i do think with hurricane harvey in houston and all the destruction in puerto rico and the threats that florida faced and had near misses every time last summer, i think that woke people up a lot. you see more discussion about what we can do to prepare for what's happening today. >> reporter: in may the campus hosted its first international conference on water drawing more than 200 experts >> the science is taking place in baton rouge and we're exporting it around the state, across the gulf of mexico and all over the world >> do you expect to see more of what we saw in baton rouge two years ago? >> we're preparing ourselves for
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the worst. >> the plan for the water campus over the next decade is to rise across 35 acres and employ more than 4,000 researchers scientists to act as a global water cooler where people can share ideas, strategies and experiences in the face of rising water and extreme weather. >> the building looks amazing. this is not just a domestic thing. this has a global -- you have world leaders going to redstick. >> you go and you're in baton rouge, you say why am i here >> lsu >> lsu is there, that's part of the water campus it's not just the ten coastal states contributing to this water campus, but at this conference, they had people from paris and amsterdam there, talking about their problems with rising water. >> should we read into the fact that that building, which is cool looking, it built on
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stilts >> you think about the water -- >> it looks like a beach house >> it's right over the mississippi river. >> so they're planning they want to make sure -- >> they want to be high up >> they want to make sure their building is protected. >> their building is protected and there will be several buildings on that campus they put it right on the mississippi so they could study the mississippi and the tributaries and everything about that that simulator was amazing pushing sludge and water through this giant simulator that tells them where the water will go and changing the direction of that. >> lovele louisiana, man. >> it's the center of water study because of the mississippi, which this country economically does not function without that river >> it's a big river from what i understand it's friday. diana, awesome piece see you soon. we promised you a rocket launch here's your rocket launch.
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moments ago the spacex falcon 9, look at that, i will do the rocket launch noise. it's resupplying the international space station it will attach to that space station on monday. it will take a couple days to get there. what a great way to start. what did you do this morning i launched a rocket. still ahead, your second half playbook. the best places for your money for the rest of the year and your mystery chart the top stock in the s&p 500 this month here's a hint. the company is up nearly 30% since june 1st here's another hint, it's in the tv business and it's not fox who is that? tweet us your guesses. nge, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered...
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in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember. no matter how much you clean, does your house still smell stuffy? that's because your home is filled with soft surfaces that trap odors and release them back into the room. so, try febreze fabric refresher. febreze finds odors trapped in fabrics and cleans them away as it dries. use febreze every time you tidy up to keep your whole house smelling fresh air clean. fabric refresher even works for clothes you want to wear another day. make febreze part of your clean routine for whole home freshness.
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that's confident. but it's not kayak confident. kayak searches hundreds of travel and airline sites to find the best flight for me. so i'm more than confident. how's your family? kayak. search one and done. verizon is pulling the plug on go 90, the streaming service that started three years ago
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it offered sports, tv show, and even won an oscar for kobe bryant's short film "dear xwam." v "dear basketball. let's find out what's coming up on "squawk box." andrew, what's coming up on "squawk box" >> it's tgif, let's start there. mohamed el-erian will be here. always great to get his take then fda commissioner, scott gottlieb will be in the house talking all things healthcare. need to ask him about amazon and where you think all of that is headed then we have the bank stress tests, we will talk to marty mosby, who has a take. grover norquist is here on taxes. six-month anniversary since the tax cuts were passed robert frank will make his way live on a helicopter to the
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hamptons, and that's always good for something. that's what we got >> robert frank is going to the hamptons on a helicopter and then somehow marketing that as a tv segment he's getting a ride to the hamptons and saying let's bring a camera and make it look like work >> maybe i don't know if he'll stay out there, come back who knows. >> i thought you had the best gig on this network, you don't it's robert frank, he has a better gig than everybody else >> he figured it out >> he mansions, it's a verb. what are you doing this weekend? mansioning >> what's your phrase? rpp? is that it >> rich people problems. the nancy's mercedes broke down on the way to pick up the kids rpp. >> nice to see you >> i'll see you in a bit 7:00 if my mercedes doesn't break down back to the markets. futures look like they'll have a
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good friday. jeff hirsch is here. dow is up 160, everybody go back to bed no >> it's the end of june. >> if we finish up more than 0.8, it will be a positive month. don't say sell in may and go away >> i won't >> in the last few years that's proven to be bunk. it's the worst six months period, it's worse in the midterm year you have president trump behaving midterm-esque pushing through things that are less savory, roiling the markets with policy initiatives, and domestic issues that have come up it's midterm-esque trying to get things through before you lose the house and congress looks like it is setting up for a soft patch
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we failed at the march highs, we turned lower so there'sa technical breakdown. we had an extra run with the nasdaq we got another seasonal sell signal in june for the best eight months of the nasdaq >> i think people are confused every day, this is what's called a newspaper. people pick this up. trade, trade, trump, trade, trade trade trump. they're scared they don't know what to do >> that's why we stick to the long-term strategies that have worked, like the seasonal switching strategies that we us used we just put out a basket of stocks that we think will work >> whenever somebody recommends utilities -- >> it's a defensive trade. >> you're basically not making a bet, just betting you're not going to fail. >> best odds in the house.
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>> but gives you the least upside >> the point is, is that the kind of market we're in? >> i think so. >> right now you need to be boring, safe >> i think over the next -- >> don't get greedy. >> we'll yet get upside in july the first trading day of july is the best trading day of the year it's been up the most, about 81%. >> what's that >> the first trading day of july -- >> monday. >> is the best trading day of the year why didn't we start the segment with that. that's interesting that should have been my rbi >> i'm here to fill it in. >> now we're at the end of the segment. you're like monday will be the best day of the year historically the first day of july is the best day of the year >> yeah. >> why all the money coming in from rebalancing, the new quarter >> people paid their taxes >> exactly then you get august and september which could be rough the fourth quarter, the midterm
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year, the first two quarters of the preelection year >> i love history. >> you have to be patient here >> is there anything that is normal about this year i don't know what millard fillmore did >> there's been crazy presidents in the past. >> mckinley, he was a hoot >> when jefferson was president, adams was edgy >> quincy? >> john. the first one. he was pretty nervous about what everyone thought about him he was a bit of an egotist c ttl kind of guy. >> i love it first day of july, the best trading day of the year thank you. time for the rbi, the mystery chart. the best stock in the s&p 500 this month you know what it is? discovery communications maybe it's a media trade because the fox deal, who knows. if you own discovery, take the
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family to sizzler tonight. been a great day i'll see you on "squawk box" starting at 7:00 a.m the show starts tinwo seconds thanks for watching.
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good morning global markets rebounding. stocks on the rise the dow futures indicated up triple digits. bank bust. the fed puts a freeze on shareholder payouts on two of america's biggest investment banks. we'll tell you why and how the stocks are reacting. and nike shares are soaring after the retailer posted an earnings beat and sales grew in north america for the first time in a year. it's friday, june 29, 2018, "squawk box" begins right now. ♪
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good morning welcome to "squawk box" on cnbc. we're live from the nasdaq nar k market site in times square. joe is joining us this morning as our special guest host. good to see you on a friday. we'll make you work for all of us, tell us what's happening with the markets, with the economy and what you see looking quickly now at the u.s. equity futures at this hour. you can see there's some big upside potential if things stay like they are now. dow futures indicated up by 146

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