and when they save, you save. so you can tell some of your dollars, "good news, gang! we're going out for ice cream!" auto and home insurance for the modern world. esurance. backed by allstate. click or call. good morning. earnings central. netflix and ibm post their stocks and watch shares fall. >> and the corporate earnings braid isn't slowing any time soon. >> and decision day in new york. the empire state holding presidential primaries today and the stakes are higher than ever before. tuesday april 19, 2016. well, that exchange begins right now.

we are expecting that 55 points higher. will we end higher. we'll have to wait and see. the yield on the u.s. 10 year. we are at 1.79%. will see this dollar weakness reverse? it is not a big enough move yet but it is something so keep watching. oil price, they were crucial yesterday. before we started the show yesterday. oil prices at some point were called down by 6% and we finished with wti only down 1.4%. not seeing too much reaction to

that no deal in doha over the weekend. and we're at 40 on wti this morning. >> we should just mention this recovery we've seen in u.s. stocks. fresh 2016 highs yesterday. look at that dow chart closing back above 18,000 for the first time yesterday since july. from the 52 woke lows back in february, the dow has now rallied 17%. the s&p 500 up 16% and the nasdaq has jumped 18%. another bullish is the russell 2,000, which is the index of small caps in the u.s. which have been hit very hard in the early selloff. now higher for the year and has closed above its 200 day moving average which is a momentum indicator that analysts watch gr and it's not just on the u.s. a sort of sense of euphoria you might even say given that oil

ended better yesterday. european markets almost 2%. for the german dax. and big gains last week. certainly green across those screens. let's have a look at asia too. gains not quite euphoric. shanghai up. a bit of weakness today yes but not very much. that big move in the nikkei coming as somewhat of a surprise. >> well just reversed the losses from the day before. >> yes. but still big move there. and as we look at things the ftsi taking into the count european asian gains is at its highest level of the year this morning. and with -- >> it is a global equity party.

bank of japan governor kuroda said something. and could lead to further easing measures. corro kuroda said the central bank was not targeting the exchange rate. but continuing to monitor the movements. it's become a nearly nightly activity for the comments. is it japanese yen is stronger for the year but overnight a little weaker. >> i think it shows change of tact. kuroda used to love and surprise the market and maybe it's a

desperation to where he's having to come in and make so many comments to try to control it. >> good point. >> south carolina central bank keeping interest rates unchanged. also we saw the australian central bank not change rates and that saw the aussie dollar rally as well. and apart from the yen, as the day of u.s. dollar weakness again. >> you are also seeing rally in mining stocks and underlying commodities. silver at something like a four month high. oil is rallying again. boston fed president roczsengre said the u.s. economy is outperforming. he says in part because of the aggressive fed accommodation following the crisis. so just adding to some recent fed voices backing up the

progress. >> counterargument came from city group. saying the risks are evident. on closing bell yesterdayem argued the fed's monetary policy is unanchored. >> the fed is watching the markets watching the fed. the market policy is reacts to not just data but global events and it reacts to market events and that is the source of uncertainty. unanchored monetary policy so monetary policy actually becomes a source of uncertainty. and because it is a source of uncertainty people are saying gee, i'm not even sure what financial conditions are going to be so i'm either going put off or spend less. >> citi is only looking for one rate hike this year. likely in september. now that we've seen markets rally not just domestically but in the world does that mean another rate like is back on the

table because the situation is calmer? >> yeah and that is the vicious cycle that the critics warn of. i would just say there are a lot of doomsayers out there and warning signs whether it is on china, the fed, on commodities and yet the pay tlads been not participating in the rally. whether it is the economic weakness or just earnings beating a very low bar. and the banks nearly all came in above headline numbers. and we'll see what happens as we continue throughout the week. >> morgan stanley. but the --. bar was very low for earnings. >> lots of earnings to catch up on. netflix topping streets

estimates on nearly every metric but disappointing guidance. shares ship in the afterhours almost 8%. they plan to add subscribers in the second quarter and it was way below what analysts were looking for. part of problem is the streaming space is very crowded. >> can he make it so there is never a buffer. so it always starts up instantly. so the recommendations are incredible and the content is exciting. if we can do all that we'll continue to grow globally even though others are also growing. so their growth doesn't take away from us. >> another is the planned price hikes in may. that concern is at the top of

the list. >> we are still reiterating our buy recommendation. we were a little spooked by the q 2 guidance which came in well below what we expected both on the u.s. and international side. the biggest question we have right now is the potential impact on the grandfathering of the hd screen subscribers which is going to kick in this may. but other than that i think the q 1 numbers came in respectable. >> ibm also reported they delivered a quarterly performance showing progress in new business but will it be enough to get big blue out its multi year sales slump. landon dowdy joins us with more. >> thanks to double digit increase in arrive from crowd service. overall arrive fell to a 14 year low. big blue posted earnings of 2.35 a share on arrives. quarterly arrive fell for fourth year in a row.

but the progress hasn't been enough to off set declines in ibm's legacy business result nitrogen an outcome they may be doing the right thing. in an interview on cnbc's closing well they explained the transition is stale work in progress. -- still a work in progress. >> going towards things like black change and things like watson. whereas in the past might have gone to build out new semi conductor technology. so is shift ongoing and we'll always move the business model to where we see value. >> another string of losses, 16 quarters in a row. a few years going on.

thank you. >> other tech news. apple says the u.s. law information agency has asked for information from the company 4,000 times in the second half of 2015 covering more than 16,000 devices. the numbers are up but actually down compared with the same period in 2014. apple says it did hand over some data in 80% of those cases. the disclosures all coming in the biannual transparence reported and on a related note the house energy committee will hold a hearing titled deciphering the debate over encryption industry and law enforcement perspective. as this debate has not gone away, even though the fbi manage tods figure it out on their hone. >> and nor will it any time soon despite the hearing. also on the agenda today. earnings season in full swing. first on the data front. housing starts and building

permits for march will be 8:30 eastern. goldman sachs, johnson and johnson. just a few of the names before the opening bell. a big day for earnings. >> and the blood testing firm says it is cooperating fully. other agencies have opened probes as well. including the state department of health in pennsylvania and arizona. centers for medicare and medicaid and the fda. listen to this. >> it is not enough to just fix the issues that they identified to us and to me we have to over haul our whole system. that means reorganizing our whole company. that means rebuilding literally from scratch the entire newark

labott. my job is to make sure it never happens again. and not only it never happens again but i put people in place and systems in place that ensure we are best in class. >> -- >> in the newalaboratory we wert best in class. >> shines a light i think interestingly on companies like them and also represents escalation in her problems. >> absolutely right. and i think to prove to people. to have people believe that they are best in class. she's got a lot of work do. >> yes. dish network announcementing a lawsuit. targeting a device called h tv. which is used to operate a 24 hour a day pirate broadcast

network. rogers slipping. ram bus. >> -- more trading with large institutions. still to come the nikkei bouncing back overnight. rising more than 3%. a live report from asia on what was behind the move. coming up. first our facebook and twitter question for the day. what is the significance of dow at 18,000. buy signal, sell signal or meanless number? coming up we'll discuss on "worldwide exchange"

great time for a shiny floor wax, no? not if you just put the finishing touches on your latest masterpiece. timing's important. comcast business knows that.

that's why you can schedule an installation at a time that works for you. even late at night, or on the weekend, if that's what you need. because you have enough to worry about. i did not see that coming. don't deal with disruptions. get better internet installed on your schedule. comcast business. built for business. in asia, big bounceback for japanese stocks after a selloff yesterday. >> reporter: and it's really being driven by the currency. the broad tone here was quite constructive. a lot had do with the fact that the commodity complex. we saw some improvement there.

broadly commodities behaving and has really driven the improvement in risk appetite. especially for those with heavy commodity exposure. the nikkei, japanese equities, strong corporation with what the currency is doing and we continue to see the japanese yen back off from 17, 18 month highs as well. in fact we're getting closer to 110. when you look at the dollar-yen. but this does not look ache like a rally. and also very much at odds with the corporate japan as well and the fact that 2% inflation target continues to prove very elusive. and the bank of japan is running out of tricks and ideas. and the policy it has implemented has been so counterproductive e sbhernl you

look at negative rates. roll on. april 28th back against the wall and only option is scale up jgp and something else. >> major steel producing countries including china failing to reach a deal on overcapacity. the u.s. warning beijing must act or face trade action. officials saying their company has cut capacity and criticizing what they are calling lazy protectionism. when we come back, it's primary day. polls set to open in just an hour. we'll hit the campaign trail. and here is the weather. >> on this tuesday we are still watching for the threat of heavy rain to move back into texas. a break overnight but the chance for more showers and storms

continue today. still watching for the concerns on the --. slow moving upper level low is still our forecast story for today and will be again for tomorrow even into thursday. meanwhile got a lot of sunshine in the east. warm temperatures as well. the west wear breaking records. seattle we're going for our third day of 80 plus temperatures. and that's your coast to coast weather forecast. "worldwide exchange" continues after this.

you get use to pet odors in your car. you think it smells fine, but your passengers smell this. {ding} eliminate odors you've gone nose blind too, for up to 30 days with the febreze car vent clip. wow, it smells good in here. so you and your passengers can breathe happy.

welcome back to "worldwide exchange." news outside of business. at least five died and hundreds rescued in houston this week. governor greg abbot declared a state of zast ner nine counties with more storms expected today. >> 240 billion gallons of rainfall. the entire city is shut down. we move to politics now because it is primary day in new york. and the polls are pretty clear heading into today. >> certainly for the republicans. it looks for donald trump could run away with this. ted cruz is polling third in new york. if he loses big today in the empire state, it means he would

have to win 98%. almost all of the remaining delegates to get this nomination before the summer. >> because tomorrow we are going to show ted cruz, who hates new york -- >> donald trump is up ten points in a month even though nbc's latest poll shows more than two-thirds say they couldn't see themselves voting for him. >> and no new yorker from. >> john kasich a distant number two is the only republican in our poll who beats hillary clinton. >> i can get blue collar workers. and i can get independents. >> ted cruz hasn't campaigned in new york if four days. he's already focused on next's e contest in maryland and pennsylvania. >> two and only two candidates who have any plausible path whatsoever to winning the republican nomination. me and donald trump. >> new york had my back and i always tried to have your back. >> hillary clinton hitting the republicans while fighting

allegations of fundraising malpractice from bernie sanders. he claims she's using money designated for other democrats on the ballot. >> let's all do everything we can to make sure that new york state has the largest turnout in a democratic primary in its history. >> sanders counting on today's turn out to make up a deficit of nearly 700 delegates. and he could go a long way towards doing that if he could beat the polls and do well in new york. >> working out the math on the delegates, it is not a winner take all state but it helps to have the majority because you can pretty much secure the delegates. >> there are statewide and then congressional delegates. the winner get twos delegates the second place gets one.

which could be good news for john kasich. he's polling a distant second but still second and if he's able to hold that he could pick up a significant number of delegates. not a game changer but certainly an advance for his campaign. >> thanks tracy potts. sports news this morning. golden state beating houston 115-106. the warriors take a two games to none lead last night. despite the absence of steph curry, sidelined with an ankle injury. but he'll be already sara, fear not. the dallas mavericks were out to prove they belong in the playoffs. the mavs and the thunder facing off. this went right to the final buzzer. the thunder can win with a last second shot.

they think they have it won but officials go to the monitor to see the ball still in his hand as the buzzer goes. video evidence shows that it is and the shot gets waved off giving the mavericks a dramatic 1 point victory. >> good morning for mark cuban, of course owner of the mavericks. it is just going to come down to lebron james and steph curry. my novice basketball opinion. >> fun. >> when we come back, this mornings top stories. and yahoo set to post i quarterly results this afternoon. and our facebook and twitter question for day. vote and we'll share the results. what is the significance of dow 18,000? buy, sell, or absolutely neither?

we'll be right back. i asked my dentist if an electric toothbrush was going to clean better than a manual. he said sure...but don't get just any one. get one inspired by dentists, with a round brush head. go pro with oral-b. oral-b's rounded brush head cups your teeth to break up plaque and rotates to sweep it away. and oral-b delivers a clinically proven superior clean versus sonicare diamondclean. my mouth feels super clean! oral-b. know you're getting a superior clean. i'm never going back to a manual brush.

youto get the help you'refar looking for. that's why at xfinity we're opening up more stores closer to you. where you can use all of our latest products and technology. and find out how to get the most out of your service. so when you get home, all you have to do is enjoy it. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around. good morning. earnings central. we're currenting down results from --. >> it's tuesday april 19, 2016

and you are watching "worldwide exchange" on cnbc. ♪ ♪ good morning and back to "worldwide exchange" i'm sara eisen. >> and a i'm wilfred faust. a very good morning from me a this morning as well. dow --. s&p higher by 18.5 points. nasdaq higher been 18 points. oil prices yesterday having a big impact on the market as did earnings and the oil price move yesterday, particularly late yesterday has helped stocks move overnight. europe higher about 2%. about .7 for france. the nikkei reversing losses

yesterday up 3.7% and oil helping the rest of the region too. >> ftsi 100 at a four month high. not so worried about brexit. at least in the stock market. >> very -- >> commodities. >> yeah. >> ftsi 250 is a better way to play uk-specific. which is the next 250 is 2 uk 350 is the 100 plus the 250. >> good one. wilfred mentioned oil. it's gaining. 40.26. you might have thought after no deal in doha crude would be under heavy selling pressure but that came bouncing from the concerns. --. gnat gas also remains highenat .

. [ sl >> the euro has charged ahead. and is heading towards 114. not quite there yet. but is a story of a stronger euro, a weaker u.s. dollar. stronger dollar against the japanese yen something to watch there. japan doesn't want that and it's been one of those global pressure points but that weaker dollars starting to factor into earnings forecast and expectations of earnings later in the year helping u.s. corporate america. the move we're looking at just for example dollar yen today is 0 0.5%. >> very good. welcome to america. gold prices we're seeing some strength. across the board. silver at a ten month high and that's been helping some of the companies. >> 0.7% move up in --.

corporate stories. ibm beat expectations. older businesses are shrinking faster than its new businesses are growing. shares as you can see suffering to the tune of 4.3%. >> netflix topping estimates but disappoint guidance overshadow the streaming giant's reports. reed hastings explained it on the earnings call. >> the only inhibiter in our growth is how great is the nervous is there never a buffering? does it always start instantly the recommendations are incredible the and content is

exciting. their growth doesn't take away from us though. >> years announcement that amazon com was going to offer a very similar netflix like experience for a dollar cheaper. shares hit pretty hard. wilfred on the release they blamed it on tough comps the year before but clearly when it comes to netflix stock and how investors are valuing it it is all about the subscriber growth numbers. >> we always say how earnings and releases are crucial for nechx. 7% move is typical type of move we get after numbers whether up or down and as you say it is that guidance on where sub numbers are going. and i wonder when it flips to be valued more on a typical basis. >> -- not just amazon but he mentioned dish with sling tv. time warner with hbo.

that's why netflix is spending, what, $5 billion on -- >> shows how much the industry has changed that we are now talking about their competition being other down the line services. not oh well they have to compete against some other folks. >> yeah. >> a busy day with other earnings coming out. first of all data front, housing starts and building permits for march. thael be released at 8:30 a.m. eastern. and goldman sachs, johnson and johnson and united health report before the opening bell. after the close we'll hear from intel and yahoo. yahoo results come just one day after deadline. three things to watch with

yahoo. >> analysts say the results are take a backseat to see marissa mayer. and here are three things to watch. the street is looking for earnings of 7 cents a share on arrive of $846 million. and since mayer took the hell, the stock has continued to fall. and that brings us to the sale process. you want to listen for any small --. there is a potential suitor yp holdings. they join a very long list but still on the hot seat. >> landon thank you. other stocks to watch today.

costco is considering building a chicken processing plant in nebraska. anheuser-busch has reportedly received a binding offer for some of his brands. it's time for this morning's top trending stories. you mentioned kanye west and -- being sued. about a month after kanye tweeted that his album could only -- it also appeared on apple music. spotify. so now this class action suit claims he and other subscribers were misled. title subscription numbers jumped from one million to three million after the album was released. >> they made such a big thing about the fact it would only be

on tidal. of course -- >> when they already knew it was -- >> exactly. i think fair enough. >> although tidal is less than $10 a month so the amount of the suit is going to be low i would think. >> still seems misleading to me. i don't know what the exact law is. there we go. governor schneider says he'll drink tap water from flint for 30 days. he was met with criticism after urging some citizens switch. fulfilling a request. >> he said his wife is on board too to drink it from their house as well. >> the hip hop musical about the life of the first u.s. treasury

secretary still on a sold out run earning more than $500,000 in profit every week. and he's out on twitter. very active. he's very -- >> when you get a broadway hit, a play hit rather than a film hit. it can go on forever. >> and you can't get tickets. >> highest grossing show of all time. including -- and everything? phantom of the opera. just keeps printing to the bottom line. >> hamilton has been competitive. i'm seeing it next week after buying tickets like nine months ago. very exciting. >> -- >> it was before i knew you. we'll have to two in a year. >> mcdonald's a franchise in st.

joseph's missouri will be the first place you can get them. >> very regional based, i guess. there it is discussed. because the world needs more heart attacks. >> don't have to eat if they don't want to. free food is something to applaud. >> -- >> i wouldn't go to mcdonald's for a health breakfast. >> you would go for unlimited fries. >> right. not every day but occasionally. >> what would it take for you are the gop to rally around trump? and eu membership certainly affecting britain's global influence -- >> should we just switch and do the opposite ones -- >> be right back

welcome back to "worldwide exchange." just looking at futures. dow jones now up 70 points. expecting to open above 18,000 and extended this morning. today's must-reads.

specifically on politics. i went to the washington post because it is new york primary day. the gop would unite around trump at its own peril. if the party backs trump does the gop endorse anti-muslim bigotry? shall the party have a plank about --. he raises good points on this idea that increasingly he's run into people, republicans who say we don't like trump but we have to unify around our nominee and beat hillary clinton. and i guess the op ed looks at what cost to the party and what cost to the party's values and it is pretty scathing as you can see by the language op ed against trump.

>> the question will be once we get through the convention and whoever the nominee is see how much people do rally around that. and potentially that cost, if everyone just moderates a little bit then maybe there wouldn't be such cost. >> if trump moderates you mean -- >> and and everyone rallies around him. and suddenly you see republicans very clinton race and maybe it is not so damaging. >> maybe. although it doesn't change the fact he has branded himself in this way. >> my pick, belief it or not. financial times. and on the brexit debate. the title, only economics matters in the brex ibt debate. i don't agree outright with the title. i do agree with some of the outtakes in the scene and something something. and rightfully the author goes

on to say people believe eu membership enhances britain's global influence but only 16% say -- if a bomber comes over and say you leave you will no longer have a seat at the negotiationing table. and -- people go on to say -- i've lost my other page now. he goes on to say the most important thing that obama can say is given diplomatic protocols the post eu britain cannot count on a quick and favorable trade agreement with america. and it is that kind of sentiment -- >> -- >> oh you won't get a seat negotiating things like the middle east crises. >> he's having lunch with the queen. of course your head of government is also your head of

state. our head of state is not. nuances of the british politics. >> we're bridging the top of the hour so that means the -- becky quick with a look at what's coming up with this market on nier and futures looking up again, becky. >> first i want to go back to wilfred. correct me if i'm wrong on this. i need a little more on the nuances there. the queen has two birthdays, right? this is her official birthday but a celebration that comes later? >> i don't know the answer of that. i think it is because it is nicer and they could have parades or something? >> you might be right. i should know this. -- >> -- two birthdays. >> she does. i have to say i don't know the answer to that. all i know is it is coming up to her 90th birthday. amazing lady. looks amazing still. and pretty universal adored -- >> she is. just like my gram, turning 90 in

august too. the market at new high this is morning. i guess we are within 2% but this is the first time back above 18,000 since july of last year. we have earnings up today. some important ones because there are three dow components reporting today. goldman sachs is coming up. j and j and the cfo on to talk to with us. and united health at 6:00. also we're going to be talking some politics today. we've got a lineup of people both republicans and democrats who will be joining us through the day. and gene spurling talking about political and economy. and where he have a couple of fun stories today. barbara cork ran from shark tank is going to be joining us. with a company she's invested in and she says she was really skeptical when the whole thing came about. they started talking about all naturally deodorant. within six days of that company

coming on shark tank they had over 1.3 million in sales. so she's totally impressed at this point. she says some naturally products work but this does and i'm little eager to hear more about the whole thing. >> all naturally deodorant doesn't sound effective to me. >> she was a skeptic and she was proven wrong on this so we're going test it out today. we also have shirley temple's blue diamond ring is going to be joining us. this is the one her father bought her on her 12th birthday. he paid $7,000. it is going up for auction today. >> great stuff becky. "squawk box" coming up in a little under ten minutes.

>> and up next we'll talk to someone and have the markets covered. don't go away. friends coming over?

yeah, so? it stinks in here. you've got to wash this whole room are you kidding? wash it? let's wash it with febreze. for all the things you can't wash, use... ...febreze fabric refresher whoa hey mrs. webber inhales hey, it smells nice in here and try pluggable febreze, with up to 4 times the freshness in one refill. pluggable febreze and fabric refresher... ...[inhale + exhale mnemonic]... ...two more ways to breathe happy

welcome back. a developing story out of afghanistan. more than 28 killed and almost 200 injured. a suicide bomb in kabul. the attack occurred outside an office of the country's main security agency. the taliban have claimed responsibility. we're keeping eye on the markets. u.s. stocks in rally mode. futures are higher. and if you look back from 52 week lows in february, the dow has now rallied 17%. the s&p 500 up 16% and the nasdaq for its part has jumped 18%. where next? joining us is jack kafari at j.p. morgan. jack, do you look at this rally, this 18 thousand level on the dow as a buy signal or sell?

>> well i pay a lot less attention to the dow and a lot more to the s&p 500. i like the breadth as an index. that said i don't think about specific levels. i try to think about where earnings are going and evaluations. the earnings story is getting priced in to some extent with valuations effecting near highs the last year. >> we've seen the market respond clearly to earnings the last week. bank, netflix, ibm. where are your strongest convictions of clear beats or misses on how you are invested? >> i think the broad spectrum, you should think about the companies -- what american companies are good at are guiding expectations and managing costs against those expectations. i think earnings will wind upbeating as they have consistently since the financial crisis. i think the bigger question is

can we see sales beats? and that is going to be much more organic. much more sustainable and much better. if you think about the sectors, you know, the financials certainly benefitted from low expectations. they gave mid quarter updates and generally their businesses have been better than they indicated they would have been if we were sitting here in the middle of february. and when you talk about technology names you mentioned netflix, you mentioned in earlier comments about others. you have to think about great news but not quite great enough and that really gets to be the trick. is the news what we expected? better or worse? >> i wonder how much of this come back is built on the back of a turnaround in the price of commodities. oil continues higher. how much do commodities need to stabilize in order for this rally to have farther to go. >> in the back of my mind i wanted to think about oil

effectively as the global interest rate and thus the sense that energy prices can firm is i think of demand improving and supply also normalizing against that gradually improving demand. and from that i think it speaks to a world which is not spiraling into concerns of weakness that spreads and widens. in that regard i think what we've really seen is you have priced out the fears that were in the market in january, early february about the sense that maybe the u.s. could slide back into recession. could that take the rest of the world with it. in that regard i think you are seeing better news. better than we were fearing 60 or 90 days ago. >> thanks so much for joining us this morning. only about 30 seconds -- 20 seconds left. we've got to be quick. >> earnings. johnson and johnson, united health. all big companies, international exposure, barometerers. we'll see what sets the tone for

the main index. >> that it's it for "worldwide exchange." "squawk box" comes up next. "squawk box" comes up next. have a lovely day.

great time for a shiny floor wax, no? not if you just put the finishing touches on your latest masterpiece. timing's important. comcast business knows that. that's why you can schedule an installation at a time that works for you. even late at night, or on the weekend, if that's what you need. because you have enough to worry about. i did not see that coming. don't deal with disruptions. get better internet installed on your schedule. comcast business. built for business.

good morning everybody. welcome to "squawk box" here on cnbc. i'm beckky quick. the dow back above 18,000 for the first time since july. from the 52 week lows back in february, the dow rallied and the others. you will see they are in positive territory again. we have three dow components reporting this morning and that could effect those averages as well. in the early trailed or at least overnight in asia you saw