tv Worldwide Exchange CNBC May 30, 2019 5:00am-6:00am EDT
looking for relief wall street pointing to a higher open following yesterday's big slide. we'll find out what's fuelling that turnaround. boeing's ceo apologizing for two deadly plane crashes over the past year, but what he said about putting his family on the grounded 737 max planes that is sure to get a lot of attention we'll bring you his comments commodity prices pushing higher as more devastating floods rip through america's heart land it is thursday, may 30, "worldwide exchange" begins right now.
good morning welcome to "worldwide exchange." i'm dominic chu. brian sullivan is off today. let's get you up to speed on the markets. futures are pointing to a higher open after a rocky session yesterday with the dow briefly dipping below that 25,000 mark all major averages are on track for their worst months since december of 2018 futures now up about 62 points for the dow, meaning we could open up around 43 points when regular cash trading kicks off the s&p 500 up by 5 points the nasdaq up by 17. treasuries, a huge focus every trader across all asset classes is watching what's happening with these interest rates and the yield curve. overall the differentials between rates, two-year note yields right now ticking slightly higher. 2.11%. the ten-year 2.27%
we'll keep an eye on those rates. turning overseas, in asia, we are seeing a bit of an action in trading there. we have the nikkei off by a quarter of a percent the hang seng is off by a half of a percent the shanghai off by a third of a percent. the kospi in south korea up by three quarterers ofs of a percet the dax is up. the cac in france also up. the ftse is up by a third of a percent as well. on the oil side of things, keeping a close eye there, wti crude up about 0.23% $59.17 the last trade there. euros, 1.111 1.1131 is what it l cost you to buy euros.
and comex, 1,281 the last trade there. trade tensions continue to dominate the headlines the latest u.s. commerce department says it will impose anti-dumping duties on chinese made mattresses and stainless steele beer kegs after it found those products were being dumped in the u.s. at less than fair value rates. the duties on chinese made kegs could be as high as 79.7%, ands after as 1,731% on mattresses. that's a huge number this as the rhetoric continues to heat up speaking to reporters in beijing, chinese vice foreign minister says deliberately provoking trade disputes equates to naked economic terim, economic homicide and economic bullying in his latest blog and linkedin
ray dalio says he views the u.s./china conflict as more than just a trade war he says increasing export controls could turn it into a more serious export embargo war. he also says the u.s. crackdown on huawei amounts to weaponizing export controls. joining me now is peter boockvar from bleakly advisory group. peter, ray dalio, always a guy who has strong words about the markets and how he thinks things developing in the macro big picture front. do you feel as though his concerns are warranted and justified? >> well, if you listen to the approach both sides are taking, digging in, using huawei, limiting "game of thrones" being shown in china, yeah, this is getting much deeper than i thought anybody realized when we
first started with this negotiation with china an we first started with the tariffs i think initially, okay, we'll threaten them with tariffs, china will roll over, we'll get a deal, everything willible fine the deeper we go, the worse it is getting if you're a ceo in this country and you saw tariff rates going from 10% to 25%, you will sit tight and see how this plays ou out. >> what is ray dalio looking at now, what are you looking at what are the signs that ray is possibly forecasting given conditions could come to fruition because of the trade conflict between the u.s. and china? nowquantifying it. we know it's going on. in july we'll see how corporate america has dealt with it from an earnings standpoint how much were the revenues clipped.
how were they able to manage on the cost side whawhat did they v to eat themselves? how companies are managing this. we won't be able to tell until the middle of july when they start reporting q2 earnings. >> this is a margin issue. it's u.s. companies from a logistical standpoint, u.s. companies pay these tariffs. so when ceos on their earnings calls say we are factoringer not fa factoring in tariffs, it's because -- >> and how much will the chinese supplier eat how much will the u.s. company eat? this is from a cost side we also know that revenues will slow nominal gdp growth is slowing around the world top line is slowing. margins getting clipped. at the same time the wage growth
is persistent because the labor market is so tight this is combining for a more challenging earnings environment. >> is this a stock market -- showing futures now indicating a higher open here we're still off and trending lower near-term. is this a market that you feel as though is accurately pricing in the risks around trade between the u.s. and china >> i think the bond market with this yield curve inversion is more worry heed about implications i think the stock market is still holding out hope that the fed will save us with a rate cut. you would think that if you looked at the news the stock market would be down more than it is, and that it is not i can attribute that to faith in the fed and that they will make everything right it's misplaced by a consistent mentality. >> peter become var, than er bo. boeing's ceo gone on the
record for the first time since two 737 max planes crashed frank holland has those details. what did he say? >> dennis muhlenberg is taking responsibility for mistakes that were a factor in two deadly crashes that led to the worldwide grounding of the 737 max. he spoke last night to cbs news in his first public interview since those accidents. >> i do personally apologize to the families we feel terrible about these accidents. we apologize for what happened we are sorry for the loss of lives in both accidents. that will never change that will always be with us. i can tell you it affects me directly as a leader of this company. >> boeing says it completed the fix for the flight control system on the 737 max earlier this month it must still be certified by the faa and global regulators. muilenburg says he is so
confident in the software fix he would let his own family fly on the jet. >> we clearly fell short and the implementation of this angle of attack disagree alert was a mistake. we did not implement it properly we're confident in the fundamental safety of the airplane >> you would put your family on a 737 mac? max? >> without hez taksitatihesitatn >> dom, back over to you >> thank you. a busy hour still ahead on "worldwide exchange. when we come back, an emergency summit in saudi arabia as tensions continue to rise in that region. a live report on the ground is coming up. and elon musk looks to try to make history and turn around what has been a rocky 2019 for the electric carmaker. later in the show, could
your uber account be at risk of deactivation better check your rating thatul fl story coming up when "worldwide exchange" returns there's brushing...and there's oral-b power brushing. oral-b just cleans better. even my hygienist said going electric could lead to way cleaner teeth. and unlike sonicare,
the latest inisn't just a store.ty it's a save more with a new kind of wireless network store. it's a look what your wifi can do now store. a get your questions answered by awesome experts store. it's a now there's one store that connects your life like never before store. the xfinity store is here. and it's simple, easy, awesome. welcome back to "worldwide exchange." futures now pointing to a modestly higher open if these futures gains hold into the opening bell we could see the dow jones gain 53 points the s&p up by 7 points the nasdaq up by 21.
on the treasury side of things, a slight uptick to rates overall. the two-year note yield yielding 2.11%. the ten-year treasury note yield, 2.27%. oil prices right now, wti crude up by 0.50%. $59.06 the last trade there. ice brent futures down by a quarter of a percent $6 $69.30 last trade there. saudi arabia hosting an emergency summit to discuss rising tensions in the region. dan murphy is live in jeddah for us dan, what can you tell us about this emergency summit in saudi arabia >> hi, dom in just a few hours saudi arabia is set to host this emergency summit in mecca to discuss these
rying tensions with iran this comes after the saudi foreign minister said iran's support nor houthi rebels was enough to destabilize the area this comes also after the u.s. national security adviser john bolton increased the temperature in the region yesterday directly blaming iran for a series of sabotage attacks on ships belonging to saudi arabia off the coast of the united arab emirates bolton said in a statement at a news briefing late yesterday that there is no doubt in anybody's mind in washington who is responsible for this but stopped short of providing evidence for his claim iran's deputy foreign minister also reacted in the last 24 hours to that comment. he described it as ludicrous and
that iran is ready to come to the table and talk, but also says iran is ready to respond if necessary. president trump has said in the past that he does not want war or regime change with iran he would like to see a cushing of iran's nuclear ambitions. whether or not the summit will achieve that remains to be seen. back over to you >> dan, put us in more of the color and context for this overall scheme and what's happening in saudi arabia and the middle east. there is a big opec meeting coming up next month, slated to take place what will these nations in the middle east and their partners be talking about with regard to not just the tensions there but what's happening with global supplies as well. >> it's a good point let's talk about what this means for your money in terms of the reaction we've seen in commodity prices to these rising tensions in the middle east, it's been pretty muted. look at the price of oil yes, we're monitoring early
upside throughout the course of trade today, but when we see destabilizing activity in the middle east, we would see a pop in the price of oil. that has not event wauated. that's because supply/demand dynamics are the main driving factor here. we are coming into that important opec meeting set to take place in june or july when opec decides that will happen. it is likely, according to the commentary that we will see an extension to the overall smi up cut agreement. that's driving the price of oil at the moment. we will see perhaps something else coming out of this meeting, it could provide a near-term upside catalyst he, it seems like it's baked into the price at the moment. back over to you >> thanks, dan murphy. still to come, a commodity crunch devastating flooding in the midwest in the united states pushing prices to near
multi-year highs the latest coming up but first a rough few weeks for one apparelmaker is about to get worse when it's stock opens for trading today. erat mystery chart you can see the. "worldwide exchange" is back after this break so, every day, we put our latest technology and unrivaled network to work. the united states postal service makes more e-commerce deliveries to homes than anyone else in the country.
my ideal cloud? it has to work like air traffic control. it's gotta let new data integrate with data from our existing systems. ♪ ♪ be able to pull from reservation platforms built 20 years ago. and also be able to use apps to book super-personalized trips on shiny new phones from the future. plus, i need freedom to move my workloads wherever, whenever - but manage it all from right here. and that's the cloud i want. simple, right? expect more from your cloud. ibm cloud. that's a live shot of washington, d.c. the day after
robert mueller gave his testimony or at least a press conference to the press corps out there. let's check some other big stock moves to watch elon musk says tesla has a lot of catching up to do to achieve a record quarter in a leaked email to employees, musk says while demand is strong he'll start holding calls with delivery teams every two days to know what's needed to accelerate our rate in a separate email last week musk said tesla produced an average of 900 model 3 cars per profit forecast. they're citing the strong dollar and a slowdown in retail growth. tariffs on chinese imports are also a concern as pvh sources a majority of its products from china. and palo alto networks announcing the acquisition of two security companies
but it also says its recent wave of purchases will hurt earnings in the current quarter shares are off by 6% in political news, new fallout this morning after special counsel robert mueller broke two years of silence in the russia investigation tracie potts is live in washington with the latest what's the fallout the day after? >> the fallout is democrats don't know where they're going with this, dom we did hear for the first time from robert mueller, could be the last time. he's a private citizen again and made it clear he does not want to testify he feels beyond that 400 page report he has nothing to add democrats are debating impeachment after robert mueller made it clear the justice department does not allow him to prosecute trump. >> charging the president with a crime was therefore not an option we could consider >> reporter: yet he also can't clear the president on
obstruction of justice >> if we had had confidence that the president clearly did not commit a crime, we would have said so. >> reporter: bottom line, it's up to congress more than 40 democrats and one republican are calling for impeachment. it would start with congressman jerry nadler's judiciary committee. >> all options are on the table. nothing should be ruled out. >> reporter: nancy pelosi is pumping the brakes on stituents impeach the president, but we want to do what's right and get results. >> reporter: the white house says mueller's statement means case closed. >> if bob mueller determined there was a crime he would have had a moral obligation to report it. >> reporter: he didn't he says he couldn't. democrats are divided on what to do next. so democrats are planning to continue investigating, they just don't know where it's headed >> all right i want to keep you around for a
bit here we want to switch gears. there are devastating floods right now happening all across the midwest. thousands of acres of farmland are under water, now congress is looking to step in what is the latest there what can congress or the trump administration do to help these struggling farmers >> so we got this disaster aid bill, $19 billion to try to help struggling farmers affected by not only these floods but also previous floods. money from puerto rico and rebuilding from hurricanes, all of that is wrapped into this disaster package but it's in limbo. congress is on break they tried to pass it without all lawmakers here to vote twice now one republican has stood up and said no let wait until everybody gets back they also want to pack more money for border security into this bill. that is their real objection here bottom line, it's in a bit of
limbo. lawmakers will try to pass it again on thursday. if that doesn't work they'll wait for everyone to get back on monday does this ultimately pass? it seems like this is something that most people can agree on, right? >> yes it looks like it will ultimately pass but not this week while everyone is on break >> tracie potts, thank you very much for that. those devastating floods are having an impact on commodity prices look at corn, wheat, soybean, those prices pulling back this morning after hitting multi-month highs over the course of the past couple of days we'll get a check on those prices in corn futures, wheat and soybeans moving to the down side let check the other top headlines. good morning conflicting stories this morning on whether the white house wanted the uss john s. mccain out of the picture during president trump's trip to japan. the "wall street journal" first reported it had reviewed an
official email with the directive ushg ss jouss john s. mccain needs to be out of the site a tarp was hung over the ship's name and sailors on board the destroyer were given the day off. despite his public feud with the late arizona senator, the president tweeted he was not informed anything to do with the ship bearing mccain's name meghan mccain also responded saying trump won't let her father rest in peace so she has to stand up for him. louisiana will become the fifth state to pass a fetal heartbeat abortion ban john bel edwards has said he will sign that ban if it kro cre
his desk israel's parliament voted to dissolve itself after prime minister netanyahu failed to form a governing coalition despite his best efforts, netanyahu was unable to secure the support of far-right lawmakers, that means voters will head to the polls again for a snap election. when we come back with "worldwide exchange," no head shop here. why google says it is cracking down on apps that sell of help sell marchetti ijuana to consum. and why bob iger says the force is strong with disney as it cuts ribbon on its latest theme park. we go live to the happiest place onar wn orwi exchange" returns. for adults with moderately to severely active crohn's disease,
stelara® works differently. studies showed relief and remission, with dosing every 8 weeks. stelara® may lower your ability to fight infections and may increase your risk of infections and cancer. some serious infections require hospitalization. before treatment, get tested for tb. tell your doctor if you have an infection or flu-like symptoms or sores, have had cancer, or develop new skin growths, or if anyone in your house needs or recently had a vaccine. alert your doctor of new or worsening problems, including headaches, seizures, confusion and vision problems. these may be signs of a rare, potentially fatal brain condition. some serious allergic reactions and lung inflammation can occur. talk to your doctor today, and learn how janssen can help you explore cost support options. remission can start with stelara®. ♪ ♪ ♪ ♪ ♪ ♪ applebee's new loaded fajitas. now that's eatin' good in the neighborhood.
call it a turnaround thursday, at least for now stocks pushing higher in the premarket following back-to-back losses we'll find out what's driving today's gains. say what why one top money manager says the yield curve is not as important to the banks as everyone thinks. he'll make that case coming up and disney making a big bet on its new "star wars" theme park but are they putting their
droids in one spaceship? we'll take you there live. it's thursday, may 30th. you are watching "worldwide exchange" on cnbc. welcome back to "worldwide exchange." i'm dominic chu. let's get you up to speed on the top headlines. frank holland has your executive recap. here's what's leading cnbc.com right now the co-founder of the world's largest hedge fund is raising a big red flag on the trade war. ray dalio says any move by china to restrict rare exports to the u.s. would create a major escalation in the trade war. rare earth is used in a variety of things from mobile phones to fighter jets. dennis muilenburg offering a
personal apology to the families of 737 max crash victims boeing says it has completed a fix for the 737 max planes that fix still needs to be certified by the faa and other global regulators, but muilenburg says he is so confident in the software fix, he would let his own family fly on the jets. softbank's vision fund is looking to borrow $4 billion against its stakes in uber, slack and garden health. this move comes as softbank looks to hand back cash to investors. softbank shares down 10% this month. down slightly in early trade back over to you let's check the markets. futures now pointing to a higher open it's modest but still back-to-back losses for the major indices, it could be a good day to see a bounce the dow jones would open up by just around 55 points if these futures gains hold into the opening bell the s&p up by 7 points
the nasdaq up by 20. on the treasury side of things, a light uptick on most parts of the yield curve. ten-year note yields right now 2.27%. just thereabouts let's dive into the markets and your money joining me now is siylvilvia j jablons jablonski. the market action has been so interesting to follow. we're still not that far away from record highs but we're seeing quite a bit of activity in key parts of the market what stands out to you as being the real important move that the markets have made thus far >> what the markets have done thus far is bring uncertainty into yoour lives. we're seeing a more bearish sentiment right now. i think the fundamentals still hold strong. so you have a decent gdp growth, strong unemployment.
five to six quarters of good corporate earnings in the long-term, if some untertcyunter uncertainty around china trade tariffs, we could see the markets rallying we've seen flows flip. we've seen bull fun funds go tor funds. you and i talked about last time we were here semiconductors, tech, those etfs were up 50%, 60%, 70% smh had a great year month to date that's down 10% plus the three beta etfs are up 50% plus on the bear side. >> so, i mean, there's a lot of focus. you mentioned all of those reasons why there's been a buy the dip sentiment for a long time now the general economic data has been constructive. is there going to be more tension paid to numbers like gdp? we'll get more reads later today and later this week with regard
to data. does it still seem supportive for stocks going higher? >> i think the market and the economy is slowing we're sort of at the end of a cycle. i think the gdp growth will probably slow. corporate earnings will probably slow i don't think they're recession worthy so there's still an opportunity to generate gains and equities if you can get high single digit growth, that seems to be a smart strategy versus just looking for lower yield returns right now. so the trade tariffs is the big uncertainty. we have a stable fed we have a dovish fed potentially rate cuts. the big factor is you have these companies that have led the market with 50%, 60% exposure to china. that will impact the bottom line and consumers will pay for those goods and tariffs. >> we're seeing a number of analysts, strategists and economists saying there are more and more signs that a reliable
recession indicator is in play is that what you believe do you believe we are seeing that slowdown? does it ultimately lead to a recession? >> i think the messages are mixed. we have a yield curve that inverted for a slight amount of time in march. it looked hairy the other day. that situation has not been the same as in the past. you do have a dovish fed, you have corporate earnings better than expected. so i think the message is mixed and that tells me we're slowing down there are investors definitely offloading risk assets we've seen growth into staples and utilities and healthcare investors are wary of what's to come i think the economy is at least potentially going to be stable for another year or so i don't think a quick recession is coming upon us. >> all right
thank you very much. >> thank you let's dig in deeper on one part of the market we spoke about. rates and their impact on the financial sector joining us now is anton schutz you make a living on rates and how they impact the financials and the banks. we are looking at the t bill yield. that part of the curve, there's an inversion of the yield curve. is this important for the banks as it has been in the past >> well, it certainly is a factor i think people put too much weight into the factor when you think about a really good commercial bank, there has been core deposits those cost the bank very little in the way of rates. a good commercial bank will lend on a variable rate basis
still making a nice spread there. if you think about six straight lenders, they tend to be more long-term type lenders, like insurance companies. life insurance tends to have long liabilities, they lend long most banks don't take a lot of long lendingies i risks the question is does the yield curve stay this way and is it forecasting something? or do we have something new like negative rates around the world, which number in the trillions of dollars, which is causing people to look at the u.s. and say it's attractive and this yield curve is not telling us anything about a recession. >> let's put it another way. is there a scenario in the future where the banks still could be a good and even outperforming investment class if this current interest rate environment stays the way it is? >> for instance yesterday the
regional banks outperformed the rest of the market that was an interesting time if the curve stays this way, which i don't think it will stay this way, there's lots of tools. first of all the fed can do operation reverse twist. they unload their balance sheet at the long end. actually, you know, right side their balance sheet and buy more short-dated securities we as taxpayers would make money off the gains the fed is making. so that's one way for the fed to deal with it there's other ways to create a positive curve i don't expect the curve to stay inverted for a long period of time if you look at stanley gorman's comments, he was talking about 2.5% to3% treasury by year-end i think the recession fears are misguided. recessions happen. i'm not forecasting one, but they do happen everybody is extrapolating that
it will be like 2007 and 2008 where we had incredible excesses in credit and in housing in the u.s. i don't see an asset class that big, that linked that has that kind of impact that could cause that kind of a deep recession. i he don't expect the yield curve to stay here i expect banks to consolidate and cut costs and create earnings simply through doing that the tougher things are the more likely m&a picks up and given cost savings are so high with technology, i think the space is cheap. you have high returns on equity, and you have dividend yields well above treasury rates. >> always great to get your thoughts on those banks, appreciate it. thank you very much for that coming up, excitement on the ice. game two of the stanley cup finals with a sudden death victory. a must-see video is coming up. first disney is betting big on its new "star wars" theme
that's what happens in golf nothiand in life.ily. i'm very fortunate i can lean on people, and that for me is what teamwork is all about. you can't do everything yourself. you need someone to guide you and help you make those tough decisions, that's morgan stanley. they're industry leaders, but the most important thing is they want to do it the right way. i'm really excited to be part of the morgan stanley team. i'm justin rose. we are morgan stanley. disney is betting big on "star wars." the company investing $1 billion to build the new galaxy's edge theme park in anaheim with a range of interactive technology. bob iger says the company has not put all its eggs in the "star wars" basket >> this summer, just in a few
weeks, we have "toy story" coming out and "lion king. there's so much going on that people are interested in yes, we have a lot to riding on "star wars." we have a die diversity of characters and franchises. we're not reliant on any one of them we like them all >> the theme park is supposed to open tomorrow. stephanie has a sneak peek from a galaxy far, far away >> i'm here in the land of batu. we're under the cover of darkness it's a good thing i have my lightsaber this is a 14 acre interactive attraction i'll tell you what, these imagineers have gotten everything down to the most minute detail. it's an experience like no other. it's interactive it's current
it's fresh there's an app you can download the disney parks app. when you go into the land, it transforms into a "star wars" data pad you can interact with characters you can check out different little exhibits and things you can find what's inside cargo. there's so much to see and we have to talk about the millennium falcon, smugglers run. it's an interactive vr ride. you can take on different positions within the ride. it's an incredible experience. there's also amazing food including the blue milk. this is what is happening here in anaheim back to you. may the force be with you. >> and with you. stephanie, what is the expectation for what the lines and wait times will be like for some of these rides and attractions? >> well, you know what i don't have an exact figure
i'm betting two to three hours, and they have so many things you can do while you're in the queue, you don't feel like you're in line they have different activities utilizing the app. the line itself will be an experience >> stephanie stanton live at gala galaxy's edge, appreciate that update let's find out what you will be talking about today time for the other top trending stories. frank holland is here with those. good morning >> going to be hard to top that. that was cool. >> i got back from disney world two weeks ago, if you need ef of the brand value of disney, go to a theme park it's pretty much a zoo everybody there wants everything disney >> nice to see stephanie is a good jedi. she had the green lightsaber james holzhauer can't stop winning. he claimed victory for the 30th straight show last night while he's still a long way away from ken jennings record of 74
straight wins, he is still racking up prize money at a much faster rate. he's about $200,000 away from jennings winning record of 2$2.5 million. some good news, alex trebek saying from the set of jeopardy and telling "people" magazine he is near remission in his fight against stage four pancreatic cancer >> the hole hausous hole story g we've seen this develop. he bets big. he likes to overwhelm the field. >> vegas vat ji. >> the trebek story is amazing i remember 10, 15, 20 years ago, if you were diagnosed with pan cr creatic cancer, you were done. today with advancements, it's
amazing that alex trebek can say he's that close to remission moving on, google updating its play store policy, it's prohibiting apps that sell or promote the sale of marijuana. google will remove all such apps from the play store. that shows the evolving situation with marijuana still illegal under federal law. >> that's maybe one of the drivers here google still has to be seen as complying with federal laws even though jurisdictions can locally say that's okay. >> the tsa also now allowing cbd oil to be flown on planes with you. it's a patchwork of different laws that everyone is trying to figure out some theme parks don't allow cbd produc products it's more important than ever to be nice to your uber
driver the ridesharing company announcing it begin banning riders with low user ratings lower rated riders would have several chances to improve their rating before being banned they could be more polite to their driver, avoid leaving a mess in the vehicle, and don't ask your driver to break traffic laws don't ask him to speed >> don't say step on it? >> i think we all have done that once or twice. >> my question is what constitutes a low rating one star or two stars? >> my rating is closer to 5 than 1, but will i get kicked off >> i think it's a changing metric we're seeing drivers getting more control after uber added a silent mode for users telling their drivers not to talk. >> evolution
it always happens. frank holland, thank you very much in the sports world, game two of the stanley cup finals took place last night in boston. call it title town it came down to the wire the bruins and the blues tied at 2 at the end of regulation play. carl gunnarsson scored the winning goal, just four minutes into overtime to win it for the blues. that's the first ever finals win for the blues. it ties the series at one apiece the finals resume in st. louis on saturday night. you can catch it 8:00 p.m. eastern on nbc sports. one tech company shrugging off the trade war despite sizable exposure to china. we'll bring you what that name is straight ahead. and why one big money manager says it is time to think small. but for big returns. he'll explain when "worldwide exchange" comes back are
chevron is selling its oil and gas assets in the north sea to ithaca energy for $2 billion 689 t and that deal will make ithaca the second largest gas company the region and twilio stock is up more than 8 fold since its ipo in 2016 and key sight technologies is up sharply today. the company which makes electronic testing equipment reporting second quarter results that beat forecast and issued upbeat guidance. those shares up 8% let's check the markets now.
futures pointing to what could be a higher hope for the dow up about 50 points if these gains hold into the opening bell 7 points for the s&p 500 and up about 24 points for the nasdaq overall treasuries, let's look at those. slight upticks to what's happening with the overall yield picture across many parts of the curve. the two-year treasury note yield standingat 2.017%. the ten-year treasury note yield a hair below 2.27% let's bring in rob morgan. so much talk about the yield curve. is it important and is it the reason why markets are starting to revalue themselves to the down side? >> well, two your previous guests in the last 30 minutes talked about or basically said that maybe the yield curve is not quite as important as it has been in the past i would tend to somewhat agree
with them. the yield curve inverted, historically that means a recession is coming six months to two years they gave different reasons for why they thought this time is different. it's always a scary thing to say this time is different i will say it, too this is why i think this time is different. with all the quantitative easing, including in the u.s., that's manipulated the yield curve in ways we have not seen historically earnings continue to be strong gdp continues to be strong we'll get a revision on that today. the trade war has been a negative for equity markets. if we get that resolved -- i think with the trade war, all the negative stuff is baked in to the market. if we can get that resolved, kicking the can down the road, that's a boost
>> that's a big statement, you're saying there can be nothing that happens on the trade front negatively that could take down the markets further from here. tell us why. well, you know, obviously trade is a big issue but if you -- but it's one big mathematical equation. we have domestic production and demand, which really in a big way dwarfs the trade situation it would take a heck of a lot to on the trade front in a negative way to drag us into recession. and then i'm agreeing with your previous guests that they don't see it coming. and quite frankly -- at least in the near-term. every business cycle ends, we will get a recession, i just don't see it in the next 12 months >> we've seen a downturn in
small cap stocks they were supposed to be more immune to issues like trade. >> as you correctly pointed out it's a sect theor that has strue lately trade issues will affect big cap multinationals more. even though not all small cap companies are just domestic, a higher percentage are. that would suggest you take a bit out of the large cap multinationals, put them into small caps yeah, i would definitely overweight the small caps at present. >> just a couple seconds here. any parts of the market you like >> i think as far as the s&p 500 sectors, my favorites are staples, financials, utilities they seem to all have good evaluations.
good visible earnings growth good strength. >> rob morgan, always appreciate your thoughts. thank you very much for joining us that does it for "worldwide "schge quawk box" picks up coverage next with modest gains in futures. ♪ ♪ at comcast, we didn't build the nation's largest gig-speed network just to make businesses run faster. we built it to help them go beyond. because beyond risk... welcome to the neighborhood, guys. thank you. there is reward. beyond the classroom... there is inspiration. ♪ ♪
beyond work and life... who else could he be? that's what i say. there is the moment. (laughing) beyond despair... there is hope. ♪ ♪ stay safe. i love you mom. i love you too, sweetheart. ♪ ♪ beyond treatment... ♪ ♪ there is care. say hi to grandma and grandpa. ♪ ♪ beyond technology... there is human ingenuity. every day, comcast business is helping businesses big and small go beyond the expected, to do the extraordinary. take your business beyond.
stocks are rebounding, stabilizing a little after back-to-back losses. we'll run through the big movers and bring you the latest escalation with china, this time targeting beer kegs and mattresses let me know when it's bacon. we'll have to end it then. >> swine flument. >> that's right. disney making a big bet on its new theme park and ray dalio raising a red flag about china's stranglehold
on rare earth metals we'll talk to the owner of the only rare earth mining facility in north america it's thursday, may 30, 2019. "squawk box" begins right now. ♪ live from new york where business never sleeps, this is "squawk box. good morning welcome to "squawk box" on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. u.s. equity futures are indicated higher after weakness in recent sessions dow futures indicated up by 60 points after closing down by 221 points yesterday s&p futures are up by 8 points s&p yesterday was down by 19 points the nasdaq up by 25 after losing 60 points yesterday. right now you are looking at the markets off of their recor