wall street, straight ahead. food for thought. starbucks and chipotle fall short. the consumer is in focus. that's coming up. plus, your money, your vote. donald trump accepting the nomination for president. it's friday, july 22, 2016 and "world wide exchange" beginni n right now. >> good morning.

happy friday and welcome to "world wide exchange" on cnbc. i'm sara eisen along with my friend don chi todwhich yo chu wilfred. >> together we will lead our party back to the white house, and we will lead our country back to safety, prosperity, and peace. we will be a country of generosity and warmth, but we will also be a country of law and order. >> we will discuss his speech, ivanka's speech, in just a moment. first let's checks on the

global marlinskets this morning we mentioned the dow breaking that nine-day winning streak. still not off from record highs. indicating a modestly higher start for wall street futures. dough futures up 33. nasdaq futures up 11.5. as for the 10-year treasury note yield we saw yields come down just a bit in the selloff. it was a reversal of what we had been seeing in the past two weeks or so. yields are stable at 1.56. the money has poured into stocks instead. >> we are still near record highs despite that nine-day winning streak. we're taking some of those queues from modest stability in european stocks. if you take a look at major markets in europe, the german dax. the ftse 100 in the uk same

story there. the ftse mib in italy up just about .10 as well. this is as flat as i've seen markets trade. if you take a look at what's happening in asia, we did see action there as well. a lot of focus on the nikkei. the nikkei down by about 1% in trading overnight. the hang sang and hong kong. ftse straight times offer just fractionally by about less than .10. >> this is the first time they had a reaction to the helicopter continuer money and bbc interview so potentially that was the reason for the 1% slide. still the nikkei did close hire higher. as for the broader market action let's show you what's happening with oil.

wti below $44 a barrel. we're not seeing the large moves we had seen earlier in the year, but still slightly under pressure again. and brent, the other way, flat, 46 .21. as for the action in the currency markets, the dollar has been higher over the last week and over the past few weeks. it's around a four-month high if you look at the dollar index. it's higher against the japanese yen this morning. global investors seem to like that. the euro is stronger against the dollar. the british pound losing a bit of steam here. just hovering over these levels in the low 1.30s. didn't do a whole lot in terms of signaling any change in action. he kind of took the wait and see mode that other global central bankers are taking lately. >> quite a bit of stability in british pound after the brexit real bottom. >> stability at low levels. >> correct. we've been hoving between 1.30

and 1.33 for the most part. >> we're going to talk about how that weaker british pound is going to impact u.s. companies. brand fnew record today. >> quickly let's just show you gold as well which has been a mover and come off recent highs. sort of around a two-week low now. 13-24 off half a percent. >> that's the macro market side of things. let's talk about the trading week. wraps up today. you have july manufacturing pmi out at 9:45 eastern time. at 1:00 p.m. we get the baker hughes. as for the earning things, general electric, honey well. all report before the bell. this week, next week gets even busier so general electric one of those things to watch in early trading. >> the industrials and focus.

post earnings starbucks missing forecast for third straight quarter. u.s. sells fell short due to the delayed start of frap menechino happy hour promotion. starbucks is also cutting annual sales growth target, not its profit target. sales growth target to 10%. chipotle reporting a big r than expected drop in same store sells. as those free food give away asks and stepped up safety measures failed to bring customers back. however chipotle did report an uptick in sales and traffic this month after a lower based shares though. responding negatively down 2%. papal rose matching forecast as revenue increased 15% in strong growth in online payments business. striking a partnership with visa to make it years to use visa cards in transactions.

the only thing i would say about earnings what we learned last night, tougher in the restaurant and food business. chipotle and starbucks totally different issues. and starbucks sales are beating and would be the envy of food and beverage companies. it's not going to be smooth sailing. yes, 80% of companies have beaten expectations. >> but how much lower are expectations. >> they are lower. >> that's certainly something to watch. i would say for the starbucks thing, china is still a decedently strong point for starbucks despite u.s. perceived weakness. >> and they have almost 900 stores in the uk so they get affected if there's any weakness. >> right. of course. more stocks to watch here just to keep things going with at&t. it's adjusted second quarter profit met forecast as it signed up new wireless subscribers. at&t is making a big mobile video push later this year by

launching online streaming services from its directv outlet. sketchers fell as shoe maker was hurt by shift in brazilian taxes, a fire in malaysia and shares falling. and pandora is cutting its full year outlook after the internal radio service reported wider than expected loss on higher cost and weaker subscriber growth. the wall street journal reports pandora has been a possible takeover target. that's according to the journal siting sources. very active in trading yesterday. ahead of earnings. we saw a big earnings report for them. it's going to be a stock to focus on this morning. >> among today's other corporate stories, em battled fox chairman and ceo roger ailes is officially out. he has resigned following

allegations of sexual harassment. he denies those charges and parent company 21 century fox says r s rupert murdoch will as the role on an interim basis. will form as adviser to murdoch, but not have a role at the company. he will receive a severance passage of $40 million. >> let's turn back to the politics side of the equation. republican nomination coming to a close as donald trump formally acceptance nomination for president of the united states. big event, i have to say every single day there was something big buzz zi to talk about and last night was no exception. >> that's right. it was donald trump's speech and if question going into the speech was how does he turn toward people who not already supporting him, his base of blue collar white voters and reach out to others, and we got a hint

he might do it with ivanka trump's speech. very polished. effectively done. talking about issues like affordable child care, equal pay, but then donald trump came and said there was not going to be outrage. he painted a dark vision of a heldish america of economic devastation and physical danger. this was the raw donald trump we had in the primaries. here's how he described hillary clinton. >> after 15 years of wars in the middle east, after trillions of dollars spent and thousands of lives lost, the situation is worse than it has ever been before. this is the legacy of hillary clinton. death, destruction, terrorism, and weakness. >> now, this was consistent with donald trump's style throughout

the try ma the primaries. he painted a picture. he said i alone can fix this problem. like nixon when america was in a tu turbulent state. huge focus on law and order. here's how he described the importance of that issue. >> the american people will come first once again. my plan will begin with safety at home. which means safe neighborhoods, secure borders, and protection from terrorism. there can be no prosperity without law and order. donald trump offered very thin policy descriptions of how to

achieve those things. he's counting on the emotion his speech generated to get a bounce out of this convention. the real question is going to be what did he do to grow the base of support that he already had. he's doing poor against latinos, voters, there were not moments where he pulled in voters that will i could tell that he doesn't already have and we're just going to have to watch and see whether the intensity he generates among his base can somehow overcome the deficit in the polls of hillary clinton. >> did the bashing of hillary clinton help? it seems to be the one issue that unifies donald trump with the entire party. the "journal" says during mitch mcconnell's speech he mentioned trump five times, but mentioned mrs. clinton more than a dozen times. >> as we saw from ted cruz's

speech on wednesday night, this remains a very divided party. republican leaders in congress are very cool toward donald trump. so yes, bashing hillary clinton is the bonding agent that the republican party has right now. that's why he leaned very heavily on that, but, again, donald trump needs more voters than the people that the he got in the primaries, the people he has with him. and it's not clear he's going to be able to do that. we're going to have the watch the reaction in the polls. hillary clinton begins to have her say in the next couple of days. expect her to announce a running mate today or tomorrow. >> i wonder on that point if she'll announce it today earlier in the day if she gets good remarks for his speech to take the news cycle away. is there any strategy there with that announcement. >> we are aides were saying they were going to watch the reaction to the speech and see how wickly

they wanted to jump into the mix with their story. if there's negative reaction to the speech and there was some amongst pundits and people in the news media. >> john, there's another speech i want to bring into discussion as well. that's for a lot of financial and technology people out there. peter thiel spoke last night in a speech that a lot of people paid attention to. i want to roll a piece of tape and get your reaction to it. this is what peter thiel said last night. >> of course, every american has a unique identity. i am proud to be gay. i am proud to be a republican, but most of all, i am proud to be an american. >> john, that was a -- the first time a person has gone to a convention and said they were openly gay, do you think that

kind of voice brings at least another perspective into the discussion of who supports trump and what kind of message he's carrying to his constituency. >> yes, it could if it were ampli amplified, but peter thiel was not seen by large numbers of people. he wasn't in the network part-time time audiences the ones that have tens of millions of people watches. that is a step in the direction that conventional republican str strategist want to see the party going. that is a welcoming arms approach to bringing in voters who are not already with them. the question is was there enough of that. was it loud enough. was it heard across the country or is the message that comes across the anger and fear that donald trump was conveying last night. >> john harwood, thank you very much. we will see. john harwood reporting in cleveland. we asked on twitter today to that very point who gave the best speech in cleveland.

everyone is talking about all three, donald trump, the head liner, ivanka trump, she's in the lead, peter thiel which generated a lot of buzz for saying i'm gay, a republican and in there again. >> we'll bring you the results later in the show. when we come back though the domino affect. a new report predicts brexit could cost north american and european companies as much as $40 billion in the coming quarters and that's only accounting for the currency impact. the man behind that new research joins us next. we can help an energy company predict pipeline corrosion. and help a start-up to use social data to predict market trends. now businesses can get more out of their data.

that's what the ibm cloud is built for. [indistinct conversations] man: looking for these? you drive buzzed, it could be one very expensive ride. first you got to make bail. then pay me to get your car back. your insurance premiums will go through the roof. and my legal fees just keep adding up. all told, it could end up costing you $10,000. [siren in distance] announcer: buzzed, busted, and broke. because buzzed driving is drunk driving.

senior officials are meeting in beijing today ahead of this weekend's g 20 meeting. our eunice you set down and joins us now with the highlights. eunice. >> reporter: thanks so much. broadway the vice finance minister was telling me how brexit is going to be the maintain focus of the conversation here at the g 20 session mainly because he sees it as the biggest risk to the global economy. he was talking how the ime had cut the forecast to 3.1% and it was really important the leaders here addressed that uncertainty. this is what he had to say.

>> certainly from uk referendum result, there's uncertainty for next two years. we really look for the successful new negotiation and making the transition with completely successfully. that's indeed important for uk, for you also for the war. >> trump's tough talk also was a major topic of conversation over here today. he again overnight as you know in his acceptance speech criticized china again, calling it out for being a cheater and currency manipulator, and, of course, a lot of american companies as well as officials have a long criticized china including say the u.s. treasury secretary again ahead of this meeting said that major economies should refrain from competitive currency devaluations. people saw that as a dig towards china. at the same time, many of them have not been agreeing with

trump's proposed solutions, such as a 45% tariff on all chinese maeds good. so the vice minister said what really needs to happen is china and u.s. focusing on benefits of trading relationship. >> we'll see if that pays off at auto. brexit could be the new excuse for the world's biggest companies as they begin to face the fallout from the uk's vote to leave the eu. so far this quarter, about 60% of them have mentioned brexit in their results and their conference calls. joining us from phoenix is wolfgang koester. he's the ceo. his report has a new report on the brexit fallout. going to be doing a lot more than talking about it. it's going to cost them a lot of money. >> it's going to cost them a lot of money. we're actually anticipating this could be the worst hit to revenues from currencies for a

long time. we've been as you know we've been for the last five years looking at earnings of corporations about 850 north americans and european and tracking what they're saying so we actually quantify what they're saying in total and report on that without analyzing it. what we've seen so far and getting the questions what you anticipate is in q 1 it was roughly 16 billion dollars that u.s. corporates lost in earnings due to not managing the revenues the way they could. when you compare that to what you see in the past. we've seen it as highs of $30 billion on a quarterly basis. so q 1 of this year wasn't too bad. you compare that also for example for the european crisis and euro crisis of 2012, you had about $20 billion worth of hits. now looking at brexit, looking at the moves you not only saw with respect to the dollar versus the sterling and the euro

versus sterling, we're actually anticipating just in north america the 35 to $40 billion hit due to brexit. >> wolfgang, you bring up a number of currency issues as well. i'm wondering in your research if there is a sense of one particular set of group or geographic region of currencies is going to have a more revailing impact. brexit certainly affecting u.s. dollar, but how much is going to happen because of the dollar strength relative to other currencies. >> you bring up a really good point. it isn't all about the sterling. it's going to be about the volatility of lots of currencies. you saw 13% move in argentina for example. you saw large moves in brazil. we're anticipating larger moves in china. we'll get to that in a minute. you're absolutely right. this is about a portfolio of currencies impacting. i know fractures a little bit later you have american airlines

coming out with earnings. they're in 54 different countries. this is going to hurt them hard. it's a great example of company. they're not as sophisticated on thinking about and managing and understanding currencies for example their international competitors. much better at understanding the it. that's what investors are going to look at. what companies really understand how to manage the currency risk and which ones don't and it's becoming a have and have notes now. >> i have to say, wolfgang, to push back a bit here. we have gotten a taste of earnings season so far in the last two weeks and very little chatter about the strong dollar. less complaints than we've heard earlier in the year and at the end of last year. look at microsoft for instance as an example. you just didn't see that in the same way and the other point i would make is that the uk is still a relatively small corporation. the euro is something totally different, but how much really is that going to move the

needle, just the fact that big devaluation was only seen in the british pound? >> it was only seen in the british pound, you're right. it came at the very end obviously of q 2. you're going to see people talking more and more about it. for example in q 1 the british pound was only the fourth most mentioned out of the top five we look at. number four in most mentioned currencies on top of it you're right about typically you have some companies only 5 to 10% of their revenue coming from sterling, but what you are going to see is companies like forbes have 20% of revenue coming from sterling. the big question is going to continue to be this isn't just about sterling, this is about volatility in general. you saw this morning lacking some stimulus that we're hearing out of draghi and immediately you have impacts on the equities as well as on the currencies. >> all right. thank you very much. always valuable to get your read

on the currency impact. coming up now the nba is moving next year's all-star game out of charlotte, north carolina. we'll tell you why coming up next.

♪ we're drowning in information. where, in all of this, is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you don't. you partner with a firm that advises governments and the fortune 500,

and, can deliver insight person to person, on what matters to you. morgan stanley. man, it's like pure power at your finger tips. like the power to earn allstate reward points, every time i drive. ...want my number? and cash back for driving safe. and the power to automatically find your car... i see you car! and i got the power to know who's coming and when if i break down. ...you must be gerry. hey... in means getting more from your car insurance with the all-powerful drivewise app. it's good to be in, good hands. futures signaling a higher streak for wall street. big stock movers and yes there are many of them during this season. and highlights from the gop convention. >> friends, delegates, and

fellow americans, i humbly and gratefully accept your nomination for the president of the united states. t time... gilman: go get it, marcus. go get it. ...coach gilman used his cash rewards credit card from bank of america to earn 1% cash back everywhere, every time. at places like the batting cages. ♪ [ crowd cheers ] 2% back at grocery stores and now at wholesale clubs. and 3% back on gas. which helped him give his players something extra. the cash rewards credit card from bank of america. more cash back for the things you buy most. the cash rewards credit card from bank of america. but the best place to start is in the forest. kubo: i spy something beginning with..."s" beetle: snow. kubo: no. beetle: snow covered trees. monkey: nothing to do with snow. narrator: head outside to discover incredible animals and beautiful plants that come together to create an unforgettable adventure.

kubo: wow! narrator: so grab your loved ones monkey: don't even. narrator: and explore a world of possibilities. kubo: come on, this way. narrator: visit discovertheforest.org to find the closest forest or park to you.

your money, your vote. donald trump officially accepts

the republican nomination for president of the united states. and cnbc exclusive. becaught up with lieu lieu leu monoceo to talk about the josto sdwrujump this year good morning. in for the ride today. let's check in on the global markets for the morning. better picture for u.s. equities futures. this after the dow did break the nooin-day winning streak. took a pause from the buying and only closed lower by about .4%. this is the bullish momentum we are in right now. dow futures up 37. s&p futures up nearly five and

nasdaq up 11.5. as for the early action in europe, very quiet. very modest moves on the major averages. the german dax has flipped into positive territory. the ftse 100 up about a quarter of a percent. some stability in the italian market with the italian banks as well. the reaction in asia was negative. responding to the japanese yen. we saw that in japan stock market. the nikkei closing down. that stock market has been zooming higher. hong kong has entered a bull market. >> quietly. >> people aren't talking about it, but 20% higher than the lows. real recovery across the world. the shanghai comp closing lower about .8%. >> of course we've got stocks to watch here today as well. visa third quarter and profit.

the company also launching a $5 billion stock buy back program and has struck a deal with papal here to make it easier fernando rodney for users to pay in store. also schlumberger has a loss. the acquisition of cam ron international. t weakened during the quarter. boeing plans to take more than $2 billion in charges in the second kwaertd. this relates to accounting changes for 787, 747 tanker aircraft programs. got a few other stocks for you to watch this morning. vodafone reporting better than expected revenue. the british telecom giant says

europe is looking stable. konoko phillips is cutting jobs. those energy jobs still feeling the pain of lower prices. chipotle reporting a bigger than expected drop in same store sales in the second quarter as free food give aways and stepped up safety measures failed to bring companies back meanfully following several food born illnesses last year. not enough to appease stockholders. the stock down 2% after house. now back to politics. p republican national convention coming to a close as donald trump formally accepted the party's nomination for president and used the prime time speech to attack relatively hillary clinton. >> after 15 years of wars in the middle east. after trillions of dollars spent and thousands of lives lost, the

situation is worse than it has ever been before. this is the legacy of hillary clinton. death, destruction, terrorism and weakness. >> joining us from washington with some reaction, policy analyst at the american constitute a familiar face here. this was a big moment for him. potentially the biggest in his career so far. he certainly got the base excited and the crowd riled up, but did he go beyond that to swing voters to viewers who were tuning in who still have not made that decision yet. >> right. listen, he sort of stuck to his message. the core of his message throughout his campaign has been we need to roll back immigration, we need to roll back globalization and by the way, hillary clinton is completely unqualified to be

president of the united states. that was a very excelling message obviously for the republican base or enough of the republican base. are those the key issues which most people are concerned about who already aren't supporting him? i think there was a missed opportunity there. if you're a parent as i am and you're very concerned about what kind of college education your kids are going to get, will you be able to afford it? will you get good value? will your kids be able to navigate a more out mated future. those weren't addressed at all. that causes the anxiety you seep among voters. fear what the future job market will look like and trump didn't address that. we'll see if hillary clinton does. >> so if he didn't address those things and those things are key for much of main street america, how much donald trump's campaign expect to see his popularity rise given what's been a high l publicized republican national convention. >> this has been an unusual

convention and i'm sure the trump campaign is thinking too bad donald didn't have more kids because the kids were the best advocates for trump. certainly more than any of the politicians or sort of kwaz si celebrities. this polling is going to jump around a lot between now and labor day. the betting markets have shown no change. about where they were before the convention. if you place any credence on those numbers. >> i like the journal headline. trump makes his case in pugnacious speech. oolts of head license are using the word dark. spell out the vision for america. does this resinate with voters, this kind of sort of negative fearful message? >> listen, that is where the consensus opinion it was a dark distaupe yan speech it was a back ward looking speech. if you are nostalgic for the

1960s america, big steel, coal mining. a lot of people compare his speech as john harwood did earlier as sort of nixon in 1960. law and order speech. if that appeals to you, it was an effective speech. i'm not sure that really goes beyond, you know, not just republican base, but really a slice of the republican base. >> jim, you mentioned back wawa looking. let's look ahead. we have another big convention coming up soon. that's for the democrats. what can we expect to see next week from these democrats, again, given the fact that donald trump has said what he said and given the message he's given over the course of the past few days. >> so donald trump had a bridge to the past theme at his convention that really opens up the ground for democrats to have a bridge to the future. to look at the modern economy. what are the challenges for parents, for workers, that's the kind of things hillary clinton

has been talking about in her campaign. i imagine they will strike those themes. they have a very optimistic forward looking campaign to really draw contrast with the little bit of gloomy endour gop convention. >> who do you think she'll pick for vp today. >> you know, i think these are the very safe pick would be tim kaine. if you're looking for more enthusiasm it would be cory booker. if you're looking for a greek, which, i'm very partial toward that. i image that's probably the short list will look like something like that. i put my money on tim kaine. >> always good to see you from washington this morning. in corporate news, lu lu le monostock has been on a tear this year. up 45%. even athletic retailers like nike and under armour. for the first time as taking

over as ceo back in 2014, the ceo is speaking out. i sat down with him at a flagship store in lower manhattan yesterday to talk about whether he can keep the growth streak going even if that leisure turns out to be a fashion fad. that's the market that we have lead and we're really passionate about. >> he said that bubble will pop. >> interesting. he's got an ax to grind. he's capitalizing on that leisure. >> i talking about about this might interest you whether they could go into other categories. are we going to see lu lu on the nfl one day. he said no he has other priorities. >> i don't wear lu lu le mono. >> haven't you heard about the a

abc pants. mens is a huge part of their growth strategy. >> great interview. tune into squawk on the street. all last week we went through the list of summer sizzlers. list of stocks, the top five s&p sectors and that heat really up as the whether gets waweather g. which sectors are still blazing away as we hit the halfway point of the season. here in the new york area it's going to be 95 degrees and sticky. some of these stocks are hot as well. >> that's rights. it's a heat wave outside. since 2010 we showed you the top five. telec telecom, tech, consumer staples, utilities and consumer discretionary. so wh which sectors are heating up. for the most part history is repeating itself this year. we do have two new entrance in the top five. one thing we have noticed is industrials are heating up more than 4% boosted by general elect

r electric. tech is the second sector. health care taking the top spot. up more than 6.5%. political change in 2017 would result in regulations for health care. instead the focus is on health care ability to grow earnings in the single digits for a fifth con sesecutive year. >> tech continues to shine. it was best performing sector so far this week. now to today's top trending stories. the nba is moving next year's all-star game out of charlotte because of the league's objections to lgbt bathroom law. the nba decision comes less than a month after the legislatelators revisited the law and chose to leave it largely unchanged. the nba saying it hopes to announce a new location soon and

could reschedule the 2019 game for charlotte if there's a resolution. >> it's a big deal because it can't influence every single city, state, law out there, but it wants to do what it can to move the game to places where it can be inclusive. >> there's an economic cost and fallout to this legislation. a lot of companies have been threatening to pull out business. the fact they actually moved on it. >> well, speaking of the economic impact, the mayor of new orleans then said that he would be happy to host. >> oh, i'm sure. >> everybody stepping in. >> of course a big story to watch on the sport's side of things. coming up the must reads. first, as we head to break, a look ats this day in history in 2013. we learned the arrival of a royal baby, prince george, it's estimated the first child generated more than get this,

$325 million in retail sales in the united kingdom. happy birthday. josh, don't you have 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. walker 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

time for our must reads. the stories catching our attention, my pick in the wall street journal titled the closing of the american mind and the reason it caught my attention because it was written by charles coke. major donor to the republican party has not officially backed donald trump and what interested

me in this piece which he really sort of criticized the general thinking of closed mindedness on trade, on some social issues. >> that this particular election has brought forward. >> correct. >> did not mention donald trump by name. here's a passage that really stood out to me. he says, quote, growing a tack tax on free speech and free association, hostile rhetoric towards immigrants, fear that global trade impovishes rather than riches. first seek government permission, all things that mr. coke does not approve of and is complaining about in this piece and he doesn't mention trump by name, but a lot of those are issues, including the free trade one, when trump last night said america first been globalism. i wonder how this is going to shake out in the republican party alone. >> he's a huge republican donor. my pick also from "the wall

street journal" sara. it's titled trump and the unknowable moment. quote, it was not an eloquent speech by donald trump. not lofty. very plain and blunt. it covered a lot of territory and went too long. saying peggy. it had no leavening humor. it was grand yois, but it was powerful and that's something that jim, john horwood noted. there was a profound message from donald trump now the question is whether it resinated. >> beyond his voter base. >> yes. >> beyond those supporting him. the team is getting ready for "squawk box." kayla is in new york with a look of what's coming up. i have a feeling the trump conversation continues. >> it's the big story of the morning.

of the day. we're going to continue talking about it and get reaction from members of congress from both sides of the aisle. their read on not only what trump said, but what peter thiel and ivanka trump said. also we have a steady stream of earnings. not just digestion of the numbers we got last night from chipotle, starbucks, visa and more. we have ge and honey well hitting the tape this morning. and earnings, guys, if they are positive could be the key to getting the markets back in rally mode. of course we snapped that nine-day winning streak on the dow yesterday, but given that we're heading into the end of the week swooel see what's in store for the markets and much more coming up on "squawk box." thank you so much for that. all the other stuff you have coming up and speaking of that nine-day losing streak. of course we're going to talk more about that after the break. we're going to talk markets. i will also note, sara, that 45%

of people said ivanka trump on your twitter poll had the best speech so far. >> it is close. >> go and vote. >> stay with us. underarm-caring,-loving, bikini line-bearing. choose venus swirl. with five contour blades and a flexi-ball, it pivots with every dip and divot. choose to smooth. venus swirl.

hello prashant bhuyan. co-founder of the fintech services start-up. hello watson. your analysis of social media and conversations on various trading floors, helps us uncover insights. insights that help investors predict market closes, well before markets close. you know, your analysis has helped us improve our predictive accuracy by over 500%. 550.2, to be precise, but we can always do better.

i like your attitude watson. >> good morning and thank you. all after a bumpy ride to nowhe nowhere, we're up 6% on the s&p 5 500. are the earnings coming in good enough to keep it going. >> certainly a combination of better than expected earnings. we're going to have to start seeing some earnings growth as we go into the third and fourth quarters. underpinning surprises

particularly in the united states where the data is better than people were forecasting and i think major policymakers continue to be helpful. they are becoming a little bit more watchful, but still continuing to be supportive of that economic momentum that we're experiencing. >> jack, it's dominic. one of the things we looked at yesterday was this idea that there's leadership in the market, but not necessarily the traditional leadership you would want to see carrying a market higher. we know the mega stocks out there and s&p have done their fair share of lifting things to highs. there are other things in the market not participating as much. is there something we should be worried about given the fact the way the leadership has developed for the u.s. stock market. >> i don't know anyone who is anticipating equities were going to be led by utilities or telecom names, but under the surface you are starting to see some of that leadership emerge. look at the industrials are trading better. energy went from certainly being a very negative performer to improving as well.

and i think that's starts to speak to better spending, better capital spending sdmand. certainly two major oil service companies pointeds to a bottoming in the rig count. i think that winds up pointing to a better forming underneath that. we would like to see it little more sip cal. broadening and recognition we can get a growth environment. >> chief among that best performing sector for the month, health care as well. those were the land and summer sizzlers. what could trip up this rally so in the past, a stronger u.s. dollar and higher treasury yields have been problematic for stocks. both are starting to creep higher as the economic data has looked better the past few weeks. >> it could be a problem, but right now you're seeing that reflection of higher treasury yields in particular reflecting a bit of comfort actually in a growing economy.

you're starteding instarting t bit of the easing of the panic. they're going to be accommodative if they require it, but they're not going to be proactively accommodated until it's needed. that's causing investors to pause and reflect and move out of true safe haven assets. that winds up being supportive valuation ifs you have more confidence in the earnings picture continuing to unfold and equities remain relatively cheap against fixed income. they become a bargain among the major asset classes. >> we didn't get to crude oil, but that has not participated in this rally. we'll leave it there, jack. which has not rallied alongside stocks, but on the plus side, it's broke tennessn the correla >> so what's your chart of the week. >> apple. it reports earnings next week. a big stock everyone watches. it did break above a hundred

yesterday. >> even more momentum for facebook which is also reporting my charlotte t of the week. ivanka, by the way, wins. >> that's it for "world wide exchange" this morning. "squawk box" is coming up next.

good morning. the dow's nine day winning streak was stopped yesterday. a look at today's trading on wall street straight ahead. shares of chipotle and starbucks are under pressure after results at both chains fall short of expectations. plus, your money, your vote. donald trump officially accepts the republican nomination for president. its friday, july 22, 2016 and "squawk box" begin s right now.

good friday morning and welcome to "squawk box" here on cnbc. i'm kayla along with joe kernen. becky and andrew a are off today. let's check the markets. dow snapping a nine-day winning streak. currently futures are set to open in negative territory as well. part of that story is crude prices falling 2%. settling back below 45 bucks per barrel yesterday at this hour. let's take a look at where oil is. we are looking at it down just a quarter of 1%. in the futures we're actually and slightly positive territory which is better than we had been earlier. overnight in asia, let's take a look at what's going on there. take a look at what we are seeing in hong kong. that index is just marginally lower. ja