welcome, you're watching the second hour of worldwide exchange. >> these are your headlines from around the world. >> china marketing plummet after data falls to a new low. >> u.s. futures point to lower open after s&p with the worst day in 18 months. >> gold rallying to a six week high as bonds benefit from a flight to safety. >> political turmoil in greece. another headache for investors

after the prime minister re-signs ahead of a snap election. >> unlike the usual attitude of many that consider themselves entitled to keep their positions, their seats, their office regardless of the conditions and circumstances i feel the deep, moral and political obligation to put in your own judgment everything i d did. >> that only begins to describe the chaos on wall street. the nasdaq below it's 200 day moving average. the s&p 500 lower by 150 points. dow losing 358 points and global concerns the topic of discussion. chinese factory activity hit it's lowest level since march of 2009. that's weighing on asian assets. if you take a look at the shanghai composite closing down by 4.2% below it's 200 day

moving average. it's fundamental and technical factors that are at play but not just china. you'll see red across the screen. the hang seng index with the worst week since 2011. here on friday, closing lower by 1.5%. a lot of the auto and industrial stocks weighing on the index and then you take a look at the japanese nikkei below 20,000 t key psychological level traders watch on the japanese index, in today's trade down around 20%. that's feeding through as well. >> the ftse 100 off by half of 1%. we're well off the session lows here. what also helped a little bit earlier on in the session is the pmi data for germany the manufacturing that was pretty strong overall, those were largely in line with expectations to slightly better.

the cac 40 down by 0.4%. by and large we are close to our february lows. in terms of the oil markets, while we are still seeing declines to the tune of 0.7% for wti crude but we are above that 41 handle once again. keep in mind that wti crude rolled to a new contract september through october so we're watching the key levels here approaching 40. quick look at the bond markets and we're seeing flight to safety once again. the 10 year treasury yield at 2.8%. but below 2.1% after it had been rangebound for quite a long time. the german yield below 60. 58 basis points is where we are but we did see a little bit of selling after that better than expected manufacturing of pmi. >> let's bring in an expert into the discussion. the managing director and head

of u.s. rates strategy this morning. >> a big market day and bonds getting a bid given the rise in volatility in equity prices. if you do want to seek safety, where do you put your money in bonds? >> so obviously the bond market has been benefitting for the last 36 hours or so. there's been an interesting kind of world we have been living in in the bond market. we have this obsession that the fed is going to hike rates quickly and soon so typically people would put their money on the front end of the curve because that's a place that has the least amount of price swings and it's closer to cash equivalents, however, really what we've seen all this month is a gravitation toward the back end of the curve so long-term rates have actually been performing really well and actually have been declining and prices going up with this

referendum on growth and global innation and disinflation happening: it's benefitting more. >> many investors that i speak to say the reason we saw such a big sell off in u.s. markets yesterday wasn't about asia. it was about fed policy and the uncertainty around whether we're going to see a lift off in september. is there a sense from people that you speak to that the fed will have to raise rates in september or december and if they don't they'll risk losing credibility? >> i don't think the credibility part comes in for them being forced to hike. it might just be kind of like they boxed themselves in. the fed does not operate that way. they will look at market conditions and overall economic factors and make a call there. you know, our view is that they should hike in december and we change that view before this market volatility.

we saw consumer trends and activity not picking up. we were worried about inflation and oil and a lot of those come to pass. given what we heard from the minutes they want to hike with conviction. they want a hike that they're going to send a positive signal on the economy and therefore they shouldn't hike in this environment because right now things are not looking that good. >> george, how low can we go? we're currently at 2.08. sub 2%. is that feasible? >> there's a race between the stock market and bond market. i call it 2 for 2. it's probably going to need to have the s&p under 2,000 as well. this manifesting itself out the curve is bringing rates to levels starting to kind of decouple from fundamentals as long as you expect the u.s. economy to continue to grow. we're making a line toward 2%. that's what the market has like

a focus on at this point and given risk markets the pressure ri market ends up being a call option when things get bad. >> if they're making a line for the 2% for the ten year, where is the two year going to head? do you think that's going to be closely angled to a potential december hike? >>. >> so september is going to be on the table as the fed really watches it closely. if there's time that things were to -- if a lot of these problems were to abate and we have stability in data, december still a possibility and we're debating more about are they hiking this year or next year? that's what the market is telling you. they don't want to come out and say that. that's what we're trying to figure out. one time hike this year or fully push it back. if they push it back it can still go lower.

we can go down into the upper 50s, low or mid 50s on the two-year note for sure. >> just when we thought the greece story was over, alexis tsipras re-signs calling snap elections. could this political uncertainty make european bonds more attractive going forward? >> so we're of the view that global investors have only so many to pick from. and given if we're getting events in addition to china and uncertainties, we still think the u.s. market will still out perform european bonds, equal unless there's a worsening of conditions there and if the greece thing were to really get out of control but what we saw in late june, early july, that's the peek of certainty and u.s. bonds kept pace and if there is a european driven-type news it's

that u.s. bond market still hangs in there. >> in the meantime we're watching the spread between the german bund and u.s. tenure. managing director and head of u.s. strategy. >> now what to watch this trading day. it's a busy day and no economic data but a handful of earnings reports that could drive action. first tractor maker deere and retailers foot locker and ann out before the opening bell. >> and as seema was just mentioning, it's all about greece once again. greece's opposition leader invited the greek prime minister to hold talks on whether the current parliament can firm a government. this comes as greek state television is reporting that the far left wing is to break off and form a new party. this in the wake of prime minister's resignation last night. the mandate he received in

january has been exhausted paving the way for a fresh vote, most likely in september. he had taken the position now that this had come to an end. >> you will judge everyone and those that gave the battle inside and outside the country for greece to not find itself in front of the firing squad and those envolkswagening ideological continuity recommending the view that greece needs to be loaned a memorandum and committed the extreme inconsistency to convert into a minority the majority that the people gave to this country's first government to the left. >> and many would argue this is a big gamble for him. you know what if you look at the most recent polls, those that we had in july, august not a great month because a lot of people are away on holiday but they indicate he would become prime minister again.

he probably won't be getting an absolute majority but he would hold on to power. he thinks he would consolidate his power and it's crazy to see that because he's actually made this major u-turn. he called that referendum. now people are having to implemented a deal a lot worse than they initially signed up for but still he would hold on to power. >> it's a bold and risky move though. you never know if the opposition party will gain momentum in the coming weeks. the election coming up in a month so that doesn't leave a lot of time for the opposition to gain support but you never know. i will point out the investor view, questions are will the election be disruptive to greece's economic recovery and does this lower the chance of debt relief? that will be the next topic of conversation in september and octob october. >> they're thinking wow it went so well until yesterday and they're like what happened now? >> they were in the south of

france taking a vacation. >> let's take a look at today's other top stories. janet yellen may be skipping out on this conference this year but that doesn't mean there won't be major news. he'll speak there on saturday about u.s. inflation developments. inflation smoo inflation is moving toward the 2% target before hiking rates. low inflation is a concern. comments that were seen as dovish leading some to speculate a september hike is unlikely. >> sis coe is adding nelson peltz to its board. days after the activist investor disclosed a 7% stake in the food distribution company. peltz is now scisco's largest shareholder. he said it should take steps to improve operating margins and consider taking on debt to increase shareholder returns. they reported a rise in

quarterly profit only once in the past three years. you can see the stock is down about 1.6% here in europe. >> that's sysco with an s and not a c. >> the company is targeting the growing market for consumer drones, especially those used for taking photos. by putting it's chips in the air it can cut hundreds of dollars off the price of entry level drones that start at around $500. qualcomm has been meeting with leading drone makers and bought a flight software company. >> what i love about the semi-conductor space no matter what technological development made, there will always be a need for a chip and that's why chips, it seems to be a great industry. doesn't matter what place you are within technology there will always be demand for it. drones are taking off so qualcomm is saying we're going to get into that. >> no longer mpcs. >> exactly.

still to come on worldwide exchange, media stocks continue to be hit by all of the broader market sell off that we're seeing. the latest, a slew of downgrades on the sector. should investors cut the cable? cut the cord? we'll discuss after this break. ] whether it takes 200,000 parts, ♪ 800,000 hours of supercomputing time, 3 million lines of code, 40,000 sets of eyes, or a million sleepless nights. whether it's building the world's most advanced satellite, the space station, or the next leap in unmanned systems. at boeing, one thing never changes. our passion to make it real. ♪

welcome back on this friday.

these are the headlines. futures point to lower open following the worst day in 18 months. china markets tumble after manufacturing data hits a 6.5 year low and a fall from grace. twitter shares break below it's $26 ipo price. >> shares falling 4% in after hours trade after the company's third quarter profit fell 13% and in the last hour, they have cut it's price target from 38 to $30 a share on the stock. he has this report. >> shares of hewlett-packard generated modest losses after shares of the computer, printer and businesses service company had 88 cents a share beating the estimate of 85 cents. shares narrowly missed the mark coming up at $25.3 billion. estimates there were for

$25.4 billion. also the current quarter outlook fell shy of some as well. they have been dealing with a number of head winds for the business including slowing personal computer sales and meg whitman spoke about that on the earnings call. >> even with the separation process heating up we remain focus and continue to execute well across the businesses however we did face a challenging macro economic and i.t. spending environment in the third quarter with soft consumer spending and stock market volatility driving uncertainty. >> whitman also said the company could see continued weakness in that pc and printer market for several quarters to come. now the current quarter will be the last full quarter that hp exists as we know it today. the company will be splitting itself into two separately publicly traded companies in november. one focussing on personal computers, printers and systems

and the other focused on services. the stock settled during a 52 week low during the regular trading session and they're down 32% just so far year to date 2015 so they'll be keeping a close eye on how trades post earnings in that first regular trading session. >> meantime, sales force.com reported better than expected second quarter adjusted profits and revenue. the company is benefitting for strong demand from the cloud based sales and marketing software. the group is raising it's revenue outlook for the third time and expects third quarter results to top analyst estimates. they rose more than 4% in after hours. the stock is up by 2-thirds. >> switching focus to retail, gap's profit has fallen for the second quarter with net income down by more than a third. they backed outlook for the year. gap is being heard by the strong dollar and name sake stores. old navy is a bright spot where same store sales rose 3%. the company plans to test the

model at its gap stores. the trend made popular by trends like h&m. it will offer small batches of products and quickly buy more if they're selling low. it's something that worked well for zara and top shoopz well. gap, shares down 1.7%. i want to point out analysts cutting the price as well. they're maintaining a rating of market perform. >> let's move on. former u.s. president jimmy carter has spoken for the first time about his cancer diagnosis revealing the illness has spread to his brain. >> thank you for coming this morning. >> in a frank, deeply personal, and very public conversation, president carter revealed not just new details about his melanoma but a man at peace with his diagnosis. >> i've had an exciting, adventurous and gratifying existence. so i was surprisingly at ease. much more so than my wife was.

>> he kept the news from his wife of 70 years for two weeks after doctors told him a mass on his liver could be cancer. they con if i recalled it and that it spread to his brain. news prompting president and his hometown. he will cut back on his work at the carter center. >> we talked about this when i was 80 and then 85 and we thought about it again when i was 90. so this is a time for us to carry out our long delayed plans. >> his grandson jason that will take over the foundation learned of his cancer when he called a meeting. he said i think i need to let the public know. i've been as honest as i can be with the public my whole life and i want that to continue. >> a level of detail unprecedented in presidential history. >> what today showed is what we should remember about jimmy carter. that he was a good and descent

man and in politics these days we don't get good and descent men running for politics. >> the former peanut farmer groun grounded as ever shared his news as he lived his life. >> with humor. >> secretary of state called. >> with discipline. >> i'll do what the doctors recommend for me to extend my life as much as possible. >> and with faith. >> what message do you have to other cancer patients watching you go through this now. >> hope for the best and accept what comes. you know, i think i have been as blessed as any human being in the world. so i'm thankful and hopeful. >> after that extraordinary news conference, many in the chapel here stood and applauded president carter as he walked out. so what's next for him? he still hopes to travel to nepal to build houses. a trip that's been in the works but said today it will depend on his treatment schedule.

>> now stocks weakened and vulnerable to more selling. you're looking at how stocks close on thursday. losing 358 points. the worst day of the year. one of the sectors, media stocks. look at your screen and you'll see how we did see a massive

underperformance in shares of disney. shares falling more than 6%. the biggest decliner after downgraded to market reform saying the sector is undergoing a massive upheaval but keep in mind the entire media space feeling the pain. hitting a two year low. viacom not there and time warner losing about 5 3%. >> who kicked that off? >> that was bob aiger. since then stock is off about 18%. he also talked about the threat and he said we're not going to take espn to ott but obviously there's so many con sercerns ab people cutting the cord. they don't want to be force fed by these cable companies anymore and increasingly the market is realizing that. i think the last shoe to drop, if you will, could be sports. espn, the likes of that, you still want to watch sports and live television.

you still need paid tv for that. >> but it's the shift to digital that is a big threat to these established media players and as you can see one of the worst performing sectors. yesterday they're losing more than 3%. also once again want to get you a look at futures. we are pointing to a lower open on this friday after we got weak manufacturing data out of china. now that full story we'll get that to you after this short break. dow down 53 points in premarket trade.

>> chinese markets plummet after aft manufacturing data falls. >> contagion spreading to europe and u.s. futures pointing to a lower open. >> political turmoil in greece. another headache for investors after syriza splinters, prime minister tsipras re-signs ahead of a snap election. >> unlike the attitude of many

that consider themselves entitled to keep their positions, their seats, their office regardless of the condition and circumstances i feel the deep, moral and political obligation to put in your own judgment everything i d did. >> hp plans to split into two separate companies later this year. >> it was a rough session on wall street. a 4% move to the down side in the shanghai composite. what does this mean for u.s. markets? the dow is pointing to a lower open. the team heavy nasdaq below it's 200 day moving average. the first time we've seen that in quite sometime indicating a lower open by 24 points. we'll keep an eye on the tech heavy sector. a lot of the semi-conductor names saw the brunt of the

selling. a 52 week low but back to asia, that's where the story is shanghai composite down better than 11%. also fed policy, the uncertainty around whether we'll see a rate hike in september. that's weighing on sentiment not just in the u.s. but this side of the atlantic as well. european stocks at 7 month lows. political uncertainties out of greece. in the meantime the xetra dax down around 21 points. so we're off of session lows but at 10,409 well below 11,000 those mining companies continue stole off but not good at the

high mining exposure. the french markets down 15. a quick look at italy. you're seeing a loss of around 28 points. >> and a quarter of the s&p companies, a third of the dow companies are in bear market territory. they're off more than 20% from their recent highs and for these three stocks it's worse than 20%. let me tell you. these three stocks are all down more than 70% from their 52 week highs. tho those. you have to wonder for these stocks in particular or for any other stocks are we going to see more bargain hunting? >> maybe. >> maybe but you want to see the energy prices stabilize first. >> absolutely but maybe it makes it a compelling by. in the meantime two things working against these stocks. one is the weakness not just in china but emerging markets in general and second is the

commodity route. oil prices are lower at a new six year low. >> we are going to focus on earnings today. deere to report before the opening bell with earnings per share of $1.44 down from the previous year. the world's largest maker of farm equipment has seen shares slide due to adverse weather which forced crop farmers to put off purchases. up 2.5% year to date thank you for getting up early with us. the stock is up about 3% so far this year as i'm just checking my notes. out performing the broader indices. could earnings push the stock even higher? >> yeah. i'm actually a little bit against where most of the consensus is believing for the quarter and think that some

weakness within the last few months in terms of selling specifically high horsepower equipment is going to weigh on the mix for the quarter and margins and you could see some weakness in the quarter but ultimately i do believe that, you know, we're going to see on going weakness within the sector. we've seen that here the past couple of years really on the decline in grain prices and a really strong crop in north america and that will continue to put pressure on grain price which is will continue to pressure ultimately the ag sector as well as the farm machinery names so i'm of the belief that deere could see pressure here in this quarter and ultimately see pressure as we move here into 2016 and you could continue to see head winds

here for the stock. >> the farming equipment market could be bottoming out in 2015. we could see a slight upswing in 2016. do you still think that's feasible given everything you've just said? >> so we like to travel around the midwest a lot being based in minneapolis and tend to talk to a lot of farmers and dealers and it seems that the environment is still a very difficult one from our assessment and there could be on going head winds within ag especially given the fact that we are going to have a large crop and the usda pointed that out last week in their latest report where they lifted yields and ended stock expectations so we could see a continued head wind for ag in general and ultima ultimately that could be

difficult for 2016 recovery and we're in the belief that you could see 2016 to be flat and right now based off of what we see in the field maybe down a little bit but still to be determined. >> there's also pressures from the currencies, many of the south american currencies but deere has already flagged weakness in those economies. do you think that's fully priced in? >> yeah at this point they have culled out the weakness in south america. we've seen some of the competitors recently call out and provide additional downward revisions to their guidance for that region and i don't think we're going to see much impact or another downward revision at

this point for south america. we continue to hear, it's on going weakness there from a macro standpoint. farmers are doing okay in that region given that the devaluations in the currency helped to offset the decline in the grain price and oil seed prices but in general there's macro concerns so you'll continue to see weakness in south america but deere did call that out already. >> could they give us a sense of how the chinese consumer is doing? because of course that has been a source of concern for global investors and one of the reasons global markets have been rocked given the volatility and weakness we've been seeing out of china. >> yeah. we have seen a lot of pressure on the trade from the recent devaluations in chinese currency as well as risk and concerns around chinese demand as we move forward.

i don't think that deere results will be a huge indicator of where china is going to be especially given the fact that deere isn't going to provide fiscal 16 guidance until november when they typically do in their 4th quarter results so the third quarter which we'll see here this morning is really more so look at what we've had here this past summer versus what we're going to look at moving forward. that's something we're going to have to wait for until november and i don't think it will be a great read through until what we're expecting from china. >> got it. thanks for getting up early with us. let's look at the other top stories at this hour. qualcomm is looking to dthe skis for its next opportunity. they're looking at the growing

market for consumer drones. by putting it's chips in the air it believes it can cut hundreds of dollars off the price of entry level drones which start at about $500. re/code says they have been meeting with drone makers and bought a flight software company. >> let's talk about uber. they're expecting to reach $10.8 billion this year rising next year. this according to an investor presentation seen by reuters. the ride sharing app could have worth $50 billion in the private markets a cording to some analysts. >> could be between clinton, trump, and deez nuts for president of the united states. one unscientific poll gives a 15-year-old boy from iowa 9% support. he's unofficial the most popular independent candidate for the white house. and that's not all. he hit the number one top trending spot in the

twittersphere. >> i haven't seen that yet. i need to google. >> it's a tale of two tech companies. another disappointing quarter of falling revenues while salesforce in the cloud while the web based software continues to power results. we'll be back in two. don't go away.

>> let's get out to landon at cnbc headquater with more. >> good morning. let's start with hewlett-packard with a drop in profit. it beat analyst forecasts however revenue missed estimates by dropping 8%. the 15th decline in the past 16 quarters. hp is being hurt by weak pc sales and lower demand for its services and the strong dollar. the company is projecting profit also below expectations. consumer revenue fell 22% in the third quarter and the ceo says factors pressuring the pc market are continuing in the current quarter and will likely persist well into the next physical year. this is the last set of results before hp's plans split on november 1st with one company

focussing on computers and printers the other on corporate hardware and services. in europe shares are down about 2%. meg whittman will be on squawk on the street today for an exclusive interview at 9:00 a.m. eastern time. sales force.com second quarter adjusted profit beat forecast as revenue rose 24% helped by rising demand for cloud-based sales and marketing software. revenue has been rising as companies opt for cheaper cloud software and services but higher spending has weighed on the bottom line but also getting share from market leaders oracle and sap. >> there's no other enterprise software company selling it and still growing at constant currency. they're selling millions of

dollars of crm. we're selling billions of dollars of crm, that's with a b and that is the difference between us and the competition. >> sales force rising about 4% in after hours but down about 1% today in europe. back to you. >> thank you so much. >> let's talk about twitter. the shares in the company closing just shy of its $26 ipo valuation back in late 2013. remember on the first day of trade on the 7th of november that year the stock spiked ending the session at $44.90 a share. but over the past six months twitter shares have plummeted 46% obviously getting punished for the lack of user growth. >> it's more that than the former. the fact that we don't know who will be the ceo. that of course perhaps weighing on the stock. pretty interesting to see that they move to the downside yesterday but twitter not the only tech stock.

book, amazon, netflix and google all moving to the down side. netflix the worst performing stock on the s&p 500. the high flyers of course they seem to be immune to any sell off now showing signs of weakness. in fact, bofacebook losing abou 5% in yesterday's trade. interestingly enough, the dow s&p 500 now in negative territory. nasdaq still the outperformer. up 3% year to date. >> absolutely but only up by a meager 3%. so that's not a lot. >> it's something. >> i know but had you gone long the european market you're still up, what, 7%? even though many of the qe related gains have evaporated since but certainly other markets where you could have seen concerns. >> there's only two not in correction territory. >> what's that? >> india and mexico. >> despite the em sell off? >> yeah. those are the two only emerging

markets not in correction territory. >> okay. these are the headlines for you this morning. futures pointing to a lower open following the worst day in 18 months. china markets tumble after manufacturing data hitting a 6.5 year low and hewlett-packard shares fall in after hours amid declining pc sales. we'll be back in two. ♪ 800,000 hours of supercomputing time, 3 million lines of code, 40,000 sets of eyes, or a million sleepless nights. whether it's building the world's most advanced satellite, the space station, or the next leap in unmanned systems. at boeing, one thing never changes. our passion to make it real. ♪

our passion to make it real. more and more, data is visual. in fact, the number of mris has increased by ten percent a year. and a radiologist might view a thousand images to find one tiny abnormality in shape, contrast or movement. because it's so challenging, a research project is teaching ibm watson to see. in the future, it could help clinicians spot key patterns quickly and precisely. ibm watson is working to make healthcare smarter every day.

welcome back. selling pressure has extended to european equity markets but we're off the session lows. only down by 2-thirds of 1%. we're off by only 15 points. now look we have the pmi numbers for germany and the manufacturing print that was much better than expected. still lagging a little bit. overall for the euro zone pmis we're better than expected. after the night where prime

minister tsipras says he is stepping down and calling new elections, we're down by 2-thirds of 1%. >> recent bout of economic data out of china, futures are lower. dow down 63 points. of course witnessing their worst day of the year yesterday so keep an eye on futures. the nasdaq pointing to a lower open as well by 26 points so we want to point out some of the biggest movers in yesterday's trade. they slipped into bear market territory which means 20% below recent highs. dow chemical, texas instruments, monsanto and gm all losing grou ground. you can see it down better than 2%. >> author and founder of average joe options.com. i have a feeling what you're going to tell us now because in the past you have always been super dovish. last time we talked you said the

fed shouldn't be raising rates in either september, october, or december. with the backdrop of weak global growth, that sell off that we're seeing is it going to be some what later in 2016 now? >> good morning. and yes, i believe that there will be no rate increase this year and maybe not until next year. a year from now. they have no basis in which to raise. i was hoping that they would raise because i believe that it's the only way that we can ever get out of the mess that they actually created because what we really have hearsay fed induced bubble that needs to pop and until they raise rates and bite the bullet and quit day trading the stock market we won't see that. so we continue to kick the can down the road looking for problems but i don't think they have the courage to step up here and say okay we're going to let the markets fall. let's raise rates and create new liquidity and i don't see it. it's at least a year off before we see interest rates rise again.

>> that's the fundamentals but let's talk about the technicals. that was something that investors were talking about yesterday. the s&p below the 200 day moving average. the nasdaq also breaking it's 200 day moving average. how much of is that a worrying sign for investors? >> i think that, you know, investors shouldn't watch all the data gyrations but we have serious issues in the markets. the dow itself put in the death cross which is where the 50 crossed over down below the 200. the russell itself is now in correction territory so i think there's a lot to worry about. i don't think we have really solid data. i think it's actually very weak based on how much money and how much easing the fed is trying to put together. we're starting to break down a little bit. the russell the most, the dow next. s&p and nasdaq are still close

but i do expect to see overtime here even if we're going to go lower you will see vicious rallies here that will give traders a chance to sell into the rallies. >> gold is shining rallying to a 6 week high. what's contributing to this move? is this just market turbulence or is there something else at play here? >> you know, i think what we've seen here is we have seen a commodity crush. we're seeing commodity indexes not seen since 2000 so we have multiyear lows here to me it's another commodity. now a very nice level of support and bounced back to 1100. right here we're just over 1140. gold will probably work it's way higher as people start to accumulate and move money around and start to accumulate some hard assets. i think gold will continue but not because of the fear. i think gold is an asset play that people want to move some

money from one place to another creating the model and spreading out their portfolio a little bit. >> i want to have a look at the u.s. dollar index. we're close to 8 week lows. can the dollar index continue to rise even if treasury yields are moving down -- we had a guest on the show earlier that said they're really making the line for the 2% level for ten year yields. >> it's funny you say that because i was listening and i believe that the ten year is going to 175 or lower. there's an outside chance we could see 1.5 again. the dollar itself, remember one thing f there is real strife and real problems throughout the world, money is going to come to the u.s. dollar. that's the real -- the safety play is the dollar and the u.s. treasuries. so that is where we're really going to see money flow so i think as long as we stay in moderate problems and i think we have a lot of problems, i think the dollar will remain strong

and i would look for it to bounce off this level here and probably work it's way higher. i would expect if everything stays the way it is now i expect the dollar intex to make new heights. >> we'll leave it there. i'll keep an eye on the bond market. buckle up. could be an interesting ride on wall street today. u.s. futures pointing to a lower open. this as european stocks trade to a 7 month low. >> absolutely. in terms of economic data points it's the nest thing to watch but that's it. i'm carolyn roth. >> i'm seema mody. thank you for joining us. we'll see you on monday. but next up is squawk box. have a good day. nt's ever been g of the campus on day one. but you're armed with a roomy new jansport backpack, a powerful new dell 2-in-1 laptop, and durable new stellar notebooks,

so you're walking the halls with varsity level swagger. that's what we call that new gear feeling. you left this on the bus... get it at the place with the experts to get you the right gear. office depot officemax. gear up for school. gear up for great.

good morning, a global market alert. stocks selling off and wall street coming off the worst day of the year. europe opening in the red. we're going to talk all about this. also breaking overnight, more negative data out of the chinese economy. key manufacturing index dropping to a 6.5 year low and crude getting crushed as well. oil prices dropping sharply again now on track for the longest weekly losing streak in 29 years. it's friday, august 21st, 2015. and 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. i'm becky quick with andrew ross sorkin. we're listening to john mellencamp this morning. that's the last time we saw oil prices drop for 8 straight weeks. that is until now. global economic concerns and weaker stock markets pressuring the commodity. check this out, oil prices this morning 41.03. this is because we flipped contracts. you had seen it trading lower before but down 29 cents this morning. this is the october contract for wti. 41.03. oil right now on track for the longest losing streak since 1986. as for stocks, let's check out the u.s. equity futures after yesterday's rougher than rough session. the dow was down by over 350 points at the end of the ss