global market alert. the dollar rewounding as fed policymakers hint at a fed rate hike. jeb bush cob cuts. going for gold, but coming up short. a big upset in rio last night as brazil defeats women's u.s. beach volley ball. "world wide exchange" beginning right now. >> good morning and welcome to cnbc. i'm sara eisen.

>> i'm wilfred frost. >> my favorite song playing in the background. this is the song i walked down the aisle. i knew it was a lovely song. i didn't pickup. >> let's get a check on global market. looks like softness overseas. potential lweighing on futures. little change. not even up one point. s&p up half a point. nasdaq up one full point. so the nasdaq is in the lead this morning. this after we did see declines. all three major embassies pulled off record close es yesterday. >> by a good half percent. >> this market has declined for a meaningful amount. markets once again realized that it's not always new highs each day, each week. which we basically had for the last couple of weeks.

decedent declines. >> absolutely and small moves. it was all about fed speak and check out the ten-year treasury note yield. bonds sold off as well. that pushed yields higher. we see them move up a little bit. unching higher towards 1.58. we were in the low 1.50s to start the week. the fed chatter that dominated yesterday is potentially getting an interest rate increase this year. >> we had data that was little better than expected. it was more of the fed speak people focused on possibilities of a hike this year. certainly not possibilities of a hike in the uk despite data coming out in the uk this morning. which was in fact fractionally better than expected. unemployment remaining unchanged in the three months to the end of june. 4.9%. data out of the uk. higher inflation than expected which has offset the recent easing likely hoods that we've seen, but only slightly. european equities all down as

you can see. we're now down about 1.5% for the week as a whole. last week was strong. the uk ten ten-year continues to hole near reported record lows. 0.58% for the ten-year in the uk. >> as for asia, we did see a gain in the nikkei. that was thanks to the fed comments. the nikkei closing higher about a percent. and shanghai comp flat. hong kong down.5%. it hassles be also been on a st run. >> the dollar dropping to lowest level since brexit. that's the broader index against euro and the yen hit the lowest level. the dollar has since recovered. hit the lows abo s at about lun yesterday. started to recover during the hawkish fed speak. two hikes this year was a

possibility. nigh fed president suggested central bank could possibly raise rates as soon as next month. two key events to watch today with that in mind, james bull ard speaking at 1:00 p.m. just pulled the dollar away from the lows it had been seeing including dropping below 100 against the yen. >> the dollar still weakened which shows there's some weight on the dollar. it was interesting to see a bigger move in bonds out of the fed speak and the fed funds future which i talk about all the time the probability the market is giving for an increase jumped above 50% for december. so potentially bill dudly of the new york fed who is on the inner circle of the federal reserve setting the table for markets to expect something this year because as of yesterday, they really were pricing in nothing in terms of a rate hike. now, does that close the window for buying of emerging markets

stocks and bonds and currencies because we have seen a good relief rally or will this december if they do raise interest rates be different than last december which we did see a major selloff afterwards. that is going to be the question going into the fall. >> also, just with the fact we saw the u.s. dollar recover for most of the day yesterday, but during the course of the day, we hit the lows since brexit which is quite extraordinary because yes, we have seen expectations of a hike ease particularly with the bank of england, but the data in general has been fine so the fact the dollar had continued to slide since brexit was a surprise leading into that. >> as for commodities, oil is giving back recent gains. been very strong recently. wti made it all the way back up to 46.11. brent at 48.69. a lot of anticipation and optimism from the bulls that we might see some sort of production feez or move from the

major producers at an opec meeting later in algeria. as for gold, it has been strong on the back of the weaker dollar. has helped gold climb back towards the highs. 1348 is where we sit right now. >> here's on today's agenda. weekly mortgage applications. 7:00 a.m. also watch the eia. 10:30. before the bell we hear from w lows, target. jcpenny holding analyst meeting today. courtney reagan will sit down with the company exclusively at 2:30 eastern time. one year after he took the helm. >> has engineered quite a turn around, at least in the stock. let's stay focused on the consumer. landon dowdy joins us with three things to watch.

>> the streets looking for target to report second quarter earnings of 1.12 a share on revenue of $16 billion. beyond the numbers three key things to watch. first online sales. digital sales rose in the first quarter. slower rate than the year before. could see more rebust growth. has been aggressively spending and hiring new talent to help fight dwindling foot traffic. grocery and toying. perishable foods have been hurting profit, but good toy sales could offset this and the third thing to watch, merchandising. has been taking steps to enhance merchandising. that improvement could make the company's outlook more upbeat. take a look at the stock. up 2.5%. back over to you. >> they've gone nowhere. they've had wbig spikes and the sort of given it back as the company set lower expectations

for the quarter. it will be interesting to watch. >> target amongst the retailers reporting today. in other corporate news, sis co-laying off 20% of global work force. this according to technology news site crn. the cuts are expected to be announced within a few weeks. transitioning from a hardware focused company. >> more retail. urban outfitters posting stronger than expected earnings, revenues and same store results. helped by higher demand for the name sake brand. certainly the stock is being rewarded to the tune of 12%. pop eye louisiana kitchen under pressure here. revenue falling short. fast food chain cutting same store sales forecast and the stock selling off. led light maker posting

quarterly roults coming in below estimates. >> more stocks to watch this morning, barns and noble firing ceo after less than a year in the job. board says ronald was not a good fit for the bookstore chain operator. companies founder and current executive chairman leonard will postpone retirement. barnes and noble says it will continue to work on strategic initiatives. >> the bumler liquid day terrors winning in court against claims it did not warn consumers about a cancer causing chemical in flooring products. southern company announces common stock offering. pending purchase of. >> we do have breaking political news to tell you

about. donald trump shaking up his campaign leadership. nbc news has now learned that kelly ann conway has been promoted the role of campaign manager. paul manafort will stay on as campaign chair, but the cofounder steven ban nonwill join the trump team as campaign ceo . >> even though manafort stays, it gets heavier at the top. >> who do you think drives it. >> i think manafort is still. >> i think donald drives it. he doesn't listen to anyone. >> yes. that's true. >> when we come back, steve win waiting for an adult to show up. he opens a brand new casino . stay tuned. i close it in the middle of the night. he'd open it in the middle of the night. it was a nightmare.

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>> welcome back to "world wide exchange." in global news, steve wynn is preparing for the opening of the wynn palace. >> reporter: thanks. we do have steve wynn over here getting ready for the big open of wynn palace. that is $4 billion project and he's coming to town basically the first time in about ten years with a new development. he first landed back in 2006 with the opening of the wynn.

that was on the peninsula. now over on the co-tie strip, his latest project there. of course we're in an environment of very weak market. we've seen something like 26 months of declining gaming revenues, but he's not afraid. not to mention the fangt we have sheldon addleson opening in a couple of weeks as well. we got a chance to speak to steve wynn and asked him how he felt about opening up in a weak market and another big project coming online. >> mirriam and sheldon are friend of me. we're all friend, all of us in this business, and we celebrate each other's moments. hopefully everything in our business it is not a zero sum game. >> reporter: so it's not a zero sum game, he says and i also got a chance to talk to him about the presidential election and

what he makes of what's going on. and i asked him, who he wants to win the election. >> someone who will take responsibility for the real welfare of the american people. be honest with them, not insult their intelligence, and i'd like to have an adult in the room. i'm waiting for that person to show up. >> and he didn't tell me who he basically would pick, but he has been friends with duonald trump for 30 years. they're in the same business. i asked if he was an adviser to the trump campaign. he said trump is his own adviser, wilfred. >> thank you very much. a little more surprised steve wasn't more outspoken. he usually doesn't hold back at all. >> i guess i got from there he's not backing trump or clinton. >> he's not backing either.

the fact he's not might be the surprise. >> when we come back, a big upset many rio last night. did owe see this, beach volley ball star, ckerri walsh jenning losing for the first time. >> good morning. we have big numbers to talk about today. now the number of people who have been eadvantavancuated and up over 30,000. we're still seeing rain today. seven gauges and rivers still at major flood stage. very concerned. it will cause more problems. plus watching the west. very hot, very dry. the blue cut fire has more than 82,000 people evacuated. we still have the heat and dry conditions remains an issue for the fire fight out here. taking a look at the west, the heat is on and building. seattle on day 7 of 80 plus

temperatures. the east i would say not as bad. temperatures only topping out in the upper 80s. no more 90s for a couple of days. get a break and have drier air moving in the weekend. that's the latest coast to coast forecast. jen carfagno for the weather channel. "world wide exchange" continues after this.

welcome back to "world wide exchange." a try if he can ta of declines for the three embassies in the u.s. yesterday. about a .5% decline. we are mixed this morning. the dow lower by 9 points. let's have a look at oil prices that has been key in the last couple of weeks as we know we are declining today just under 1%, but as you can see, 46.16. crude some way from the 40 level it hit ten days ago. currencies were really in focus yesterday. the u.s. dollar against the yen, the euro, and the broader index hit the lowest point since brexit in early trade yesterday. it then rallied a little bit when we got relatively hawkish fed speak today. looking at a flat picture against the yen where the dollar is rebounding more significantly as it was late yesterday afternoon.

it's back above 100. yesterday it did dip below 100 level. if you went to bed early last night, you missed some great moments in rio. nbc's jay gray joins us from brazil with all the highlights, jay. >> reporter: good morning. wilfred. always grade to talk in the mornings. look, last night a big night for team usa. they continue to be the dominant team here in rio, but the most dominant beach volley ballplayer ever will not be battling for gold. losing her first ever match in olympic play. >> you won't see them done like this, though. >> she is the gold standard in gymnastics. >> reporter: simone biles closing the competition in rio with a record time fourth gold medal, teammate alley raisman taking silver. there was little hope for the rest of the field in the triple jump. finishing one and two.

clay taking an even bigger leap after the competition proposing to girlfriend in the stands. she said yes, but the answer was no for kerri walsh jennings and april denied a shot in volleyball. later today more medal chances for a strong american team in trang and field. golf tees it up and basketball battles argentina in a quarter final elimination game. >> reporter: the americans also taking the stage in combat sports here, boxing and wrestling, good chances for the team in both. on that note, and because you guys love to see it, we actually have the wrestling sling let that the women will be wearing today. you can see hear with the flag. >> sara, you should wear this. >> i told you i want the sparkly

gymnastic one. >> i thought this would suffice. >> she has the feistiness of a wrestler. >> how about that final act from simone briels. >> >> she is sun believable. she absolutely owned the gymnastics portion of the competition here in rio. goes out with a gold medal just like she hoped she would. she really showed it yesterday. watching that and i've watched it a few times, it's such a combination of power and grace. it was amazing to see. >> jay is on form today. quite the charmer. i've been blown out of the water. jay gray, a real pleasure. >> let's have a look at the medal count. 84 medals in total. china is currently second according to this. i was good lg this this morning, i'm obviously checking daily the

wrong set. china second with 51 total medals. third great britain. a great day yesterday. couple of golds included. team gb. 19 golds. >> more golds than china. >> you can claim that. >> clearly whichever measure i'm looking at, rates. >> google is slow. >> rates gb in second place. either way great performance from the u.s. and uk so far. now to politics. big news here. donald trump will receive a classified intelligence briefing in new york today. meantime the fbi is giving congress documents related to the investigation of hillary clinton's e-mail, but the top story that shake up in trump's campaign. nbc tracie potts covering all of this news for us. what do you make of the campaign changes. >> reporter: obviously he needed new strategy give given the fact he's slipping in polls and battleground state polls. he's putting some new people at

the top today as he gets a top secret clearance for what he's about to hear. >> reporter: donald trump bringing chris christie and foreign policy adviser to today's classified briefing. it's a big picture from the office of the director of national intelligence. nothing on covert operations, nuclear weapons or espionage a source tells nbc. >> the objective ought to be for both candidates to understand the situation better than when they started. >> reporter: hillary clinton tells pennsylvania voters trump is dangerous to national security. >> what he often says hurts us. it sends the wrong message to friend and foe alike in the world. >> reporter: while clinton campaigns in cleveland today, lawmakers will be looking through notes from her fbi interview about her e-mails. she's been cleared of criminal wrongdoing, but republicans want her prosecuted. >> it wasn't an innocent

mistake. this went on for years. >> reporter: as trump talks to african-american about the milwaukee rights. >> law and order must be restored. >> reporter: he's also bringing in new leadership today. conservative media personality and stair steve bannon and kelly ann conway as campaign manager. trump says paul manafort is going to stay on in that role. >> one of the criticisms towards mr. trump recently has been that he doesn't take enough advice from his various campaign advisers. he's now got a chairman, a ceo, and a manager. the three titles. so what's the high arkanserarch >> and trump is a businessman

and has tried to fashion his campaign after his businesses. now is he going to listen to them, we have no idea. that has been a frustration that we have heard coming from the inside. what he did say is the two people he's bringing on, kelly ann conway and the bannon are two people he's known for a while. trust seems to be a big factor. a few of the people we know he listens to are his children. >> it has been unusual. tracie, thank you. see what happens there. tracie potts in washington. >> still to come on "world wide exchange," this morning's top stories plus market strategist gets us ready for the day ahead. stay tuned. you're watching first in business, cnbc. worldwide.

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back. >> let's get straight to the action. yesterday we saw declines awe cross the embassies around half a percent of declines. a reminder it's not always going to be new highs this month. today looking like we're going to bounce back from that .5 decline. all by it slightly. essentially we're flat in the premarket. let's have a look at trade around the rest of the world as well. disappointing performance across europe as you can see. the best part of a percent of decline for germany. ftse 100 just blow flat. the broader stock 600 is down about a percent to 1.5%. we had strong gains both last week and since brexit so put that decline in perspective. asia, have a look at the trade over there. relatively strong, as you can see. japan up 0.9%. the yen has been softer today. having been stronger for quite some time. playing out in the opposite

direction. >> as for the broader market picture, oil closed yesterday at the highest level in five weeks. back above $46 a barrel. still looking at it pulling back. wti 46.16. brent 48.87. down as i mentioned almost a percent. as for the ten-year treasury note yield creeping higher. selling of bonds along with selling of stocks yesterday on this idea that maybe the fed is thinking about an interest rate sooner than the markets are or at least putting it on the table as a prospect for this year. that helped the dollar recover from the lowest point in almost three movants yesterday and you are seeing a little bit stronger dollar this morning against the euro. no, actually. -- yes, stronger dollar versus the euro and stronger dollar versus the pound and japanese yen. still around the critical level. we dip below that yesterday.

as you mentioned, that was the near brexit early july lows for dollar yen so potentially this fed talk giving the dollar a boost. we'll see what happens today. get the minutes from the last meeting. see if that confirms the dudly markets being too complacent. >> i think the fed speak gave the dollar a boost from low levels and for just over a day as we look at things now. we have to focus on the minutes today and also remember we're in august. we're not seeing huge volumes and moves based on the back of changing opinions. we haven't seen a change in the fed futures when we expect a rate hike. >> we'll watch it. >> it's been moving goad becaeie the weaker u.s. dollar pushes up prices of commodities. it's been higher in the last few weeks. >> joining us now from new york, rob morgan.

very good morning to you rob. thanks for joining us. let's get straight to what sara and i have been chatting about. dollar and expectation of fed moves. what is your latest expectation of when the fed nelson crxt hik rates. >> historically the fed has stayed on the sidelines prior to presidential election and also even though brexit seems to have completely gone off the table, i think there's still post-brexit concerns with the fed as well. i don't see them raising rates really until december at the earliest and probably in the next year in spite of mr. dudly's comments yesterday and maybe what we see in the minutes today. >> we look towards december and been asking a number of guests this, shoul investors expect the reaction we saw in global markets after last december's first interest rate hike in nearly a decade which was a bumpy road straight ahead. >> it was a bumpy road. we started the year on a down

note, but i think, you know, the facts that was the first rate hike in many years, i mean, six, seven, eight year, whatever it was. it broke the ice a little bit and conditioned the market a little bit to the fact that eventually we're going to have another hike and i don't think we'll see the same type of reaction this time around. >> we saw telko get slammed yesterday. does that show how much the market has bit up certain yield sensitive sectors and they are ripe for a fall if opinions and inflation and where the rate hikes are going. >> it certainly does illustrate the short term concerns for that. in the notes i sent over, i do like some of those high yielding defensive sectors. telecom, materials, utilities. >> yes, i was shocked.

those 20% moves year to date and highest valuations ever. not enough for you. you think they can run higher. >> i do. a couple of things. i'm still skittish about the siply cal stocks. things are getting closer to where i would reduce my waitings there, but i still like them. people are looking for yield and those -- and i don't think the valuations by some metrics are completely out of line. >> so 3% fall yesterday is a buying opportunity then. >> i think so, sure, absolutely. >> we're going to get some retail earnings. it's hard to say retail because you have department stores and off price retailers and specialty and teen apparel. today we'll hear from target, tomorrow. what you take on that group. >> i'm underweight and one of the groups, discretionary, i think we need to see a little

more from the consumer on the spending side before i'd necessarily get excited there. of course the retail sales in your opinions, hopefully they'll be good. they may show that some of this is turning around. >> rob, thanks for joining us this morning. more signs of trouble in the hedge fund industry today. researcher says the average hedge fund is up 3% through the end of july. that's less than half the s&p increase. hedge funds have posted three consecutive quarters of withdraws. that's hasn't happened since 2009. wall street journal is reporting problems. the paper says investors pulled more than $3 billion from brechb howard flag ship this year. yesterday the firm cut the workforce by about 15% or 60 employees. >> media news, settlement talks

between have resumed. terms on the table allow him to present the board with his plan to sell stake in paramount pictures in exchange for his exit. >> univision winning top bid of gawker media. the sale still needs to be approved by a judge in a hearing set for later this week. this coming off gawker was forced into bankruptcy with legal battle of former professional wrestler, hulk hogan. >> switch making a deal to expand reach. just acquired a special service called curse. which allows gamers to talk to each other and share information over the internet. it's been referred to as skype for gamers. amazon is certainly building up its gaming viewing.

it's a whole new genera. >> it's a sign you and i are not representative of millennials. >> i agree. on that note. time for top trending stories. viral video alert. sports illustrated releasing a look into a recent olympic cover shoot. this is great. michael phelps tapping into own experience showing catty ledecky how to pose with all of her medals. have a look. >> put them on one by one. done this before. you'll learn, don't worry about it. >> do swimmers also work out their necks because she's got to have a strong neck to carry all that gold. >> they work every single muscle in their body. >> she got five. >> he has experience with

getting a multitude. >> next trending story, believe it or not, mcdonald's is a staple in the olympic village. not surprising because the food is completely free for athletes and coaches now the company is capping single orders to 20 items per person. still athletes are allowed to ask for more food, but that causes their order to drop in priority so other customers will be served more quickly. we were discussing on the break how disappointing it is for athletes that crash out. bonus is they get a two week holiday. free m mcdonald's. free food across the village. >> i thought the athletes had to maintain a healthy diet. >> i presume this is a big bing diet. another ryan lochte had almost purely mcdonald's because he didn't like what's over there. still won some gold. >> twitter and pepsi are teaming up to add flair to photos on the

social media site. pepsi brand eed stickers. with a smaller variety of the designs available in the u.s., india, russia, canada and mexico. paying for promoted hashtag along with this. say it with pepsi. as part of the deal. we know these two have a close collaboration. hugh johnston who is the cfo and the president on the board of twitter. testing on new advertising models we'll see to make it more authentic than just doing the regular adds on twitter. >> will it work? it's more of a news items. you're going to start advertising on your photos and tweets about work. >> probably not. >> then you have to do a few coca-cola rated tweets. >> exactly. >> still to come on "world wide exchange," today's must

reads plus much more market analysis.

gm. welcome back to "world wide exchange." now to this mornings's must read stories catching our attention. >> you go first. >> that's fine. i'm going to make sure you already read it. my pick is in the financial times. it's titled a split a solution

for the single currency. joseph stig lets writing the rule changes to make the euro work are in an economic sense small. he lists things like a banking union, common deposit insurance. rules to cut out trade surplus. things like that, but he says these seem well beyond the politics of europe today. europe may have to abandon the euro to save the european projects so quite a -- despite the title of the headline being at least mixed if not positive, the actual article is pretty down beat in terms of the future of europe. mentions brexit. good fundamental analysis of the economic issues facing europe right now. he is joining us on "squawk box" for a full hour. not just to talk about europe. he's got a book out about europe, but the u.s. and the presidential election. of course a very powerful voice.

stieglitz, nobel prize. >> there were all that implications this was the beginning of the end of the eu and the european project and really the currency has been stable. potentially that's because of the market reaction and the embracing of central banks being all in to help, but will these questions start to come up again, clearly some of the top economists in the world have still thinking about it and trying to game it out and it could be a big story down the road. >> indeed. >> my pick is in the new york times. apple emow apology gun control. on this idea that instead of the bit mow apology for the rifle, it's a water gun and apple didn't say anything about this, but this professor read they were trying to make a political

statement or control the gun issue. he doesn't agree with that. to eliminate a concept from a language vocabulary is to reflect a sweeping view of how availability of language can control behavior as well as a strange desire for companies inevitably governments to police our behavior through that language. bit mow apologies are the language of our day: it's an interesting debate. it's one that is apt right now. how much companies can control how we operate. >> i've got mine. >> there we go. >> it's actually my hair color. >> mine is ginger. which is fine. i have nothing against it. it's just not my air color. >> let's switch focus and head to rio. andrew sorkin joins us. good morning to you andrew. >> reporter: good morning. it was an upset on the beach in

volleyball yesterday as team usa kerri walsh jennings and april were defeated by brazil. this is the first olympic beach volleyball match loss. now 26 wins, one loss. >> i mean as tough as it gets as an athlete, it's one thing to lose and it's one thing to lose in a way you never want to lose which is by losing the final medals of the game. i'm really proud we stuck together. we stayed. we were down and it just never had the mow joe today. so it's really disappointing. it's heart breaking, but the great thing is we earned the right to fight tomorrow and make it better. >> reporter: they will be matched up, but today going for the bronze. it was pretty tough to watch them lose last night. in the meantime, soccer. women lost to sweden. they will now face off for germany for gold.

and team great britain, olympic couple, this is jason kenny and laura trot. engaged to be married. both medaled and they're being feted by many papers this morning. >> they are the golden couple marrying in september and she's the most successful british with four golds. they can scrap the rings all together. >> i knew you would know the issues. coming up on "squawk box," wilfred told you about mr. stieglitz joining the show. talk golf. also the official credit card of the olympic games is trying something new this rio and interestingly you can leave your wallet at home. we have all that coming up on "squawk box" live from rio in a little bit. >> have you been in the olympic mcdonald's. >> i have not been to the free mcdonald's. despite all the ping-pong you saw yesterday, i'm not an

official athlete here so i do not have permission to get in there. there is a mcdonald's down this way. they don't have burgers. mcnuggets. it's just ice cream. it's an ice cream mcdonald's. >> did you get to watch any of the beach volleyball because in london i have to say it was my favorite event to attend because it had a beach vibe in the middle of a city that would be massively. >> i haven't seen it live. we're hoping to go down there. this is a pretty distributed olympics if you will. we're here in the olympic park. the beach volleyball is going literally probably half hour to an hour given the traffic down here cabana. so there's a divide if you will between the places. i'm hoping to get to some ping-pong as well which is that way. >> that's your sport.

andrew, thank you very much. we look forward to more coverage. if the u.s. were going to lose at beach volleyball. it's good it's to the host brazil. that's kind of their sport. when we come back the fed is in focus all week. we'll check in with ellen zentner. stay tuned. you're watching cnbc first in business worldwide.

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what's the value of one more tree? a forest? a walk in the woods? what's the value of art? art open to the public. the value of capital is to create, not just wealth, but things that matter. morgan stanley. capital creates change. welcome back to "world wide exchange." joining us now to talk about the trading day ahead is ellen zentner. we'll get the minutes from the last fed meeting which take on some added importance after the latest fed talk. what is the fed trying to tell us. >> i think yesterday left clients wondering is he sending a warning sign? the minute are going to be more hawkish than people expect. by saying, look, you're too

complacent on rate hikes. i think he was taking a longer term view and more about the complacency that markets are pricing in. i don't think he was sending a message about near term rate hikes saying we're inching toward possibly maybe raising rates again. doesn't sound like much conviction around september rate hike, but does prep us for the possibility the minutes turn out hawkish. >> just as we're approaching the brexit vote we got the minutes and saw very much focused on that as an event. are we likely to see them focus on the u.s. election of the event or stay clear of mentioning that. >> so the minutes are interesting, right? it's nearly 300 pages of transcripts that have to get paired down to just nine pages. so they can leave a lot out. >> right. >> you will never hear fed

officials directly talking about how the election might effect monetary policy and they bristle if you ask them. surely you wouldn't raise rates before an lx year because that might influence the outcome or something like that. where it plays into monetary policy is if something about the election is creating a lot of uncertainty, a lot of volty till in harming the outlook, then it becomes the feds directive to respond. so the elections, any policymaker will tell you absolutely do not play into their decision making. >> yesterday was an odd day. we got better data on industrial production. housing starts. it seems like the market reacts more sharply to fed speak than to the actual data which is odd because the fed is data dependent. >> exactly. that's something bernanke suppressed in the most recent blog post. follow the data. >> but they're doing the opposite. >> it seems like they were doing the opposite based on

yesterday's market pricing. although i will say that something like retail sales which surprised to the downside last week in a pretty big way really trumps if you rank data in terms of market importance, that really trumps the data that came out this week so far. it really took a lot of steam out of third quarter gdp tracking and suggests we're only tracking around 2% growth in the third quarter after averaging around 1% in the last three quarters. that's really under shooting the fed's expectation. >> has it been strong enough to justify the market highs we've hit recently. >> i'll leave that up to adam parker. he is bullish on u.s. equities. if i look from an economic fundamental and you think well, some of the drag from the dollar, priest gains in the dollar is coming off the economy and collapse in oil prices is coming off, then that should

give you a better earnings picture. >> got to leave it there. >> that's it for "world wide exchange" today. "squawk box" is next. she thinks it smells fine, but her guests smell this. ding, flies, meow febreze air effects heavy duty has up to... ...two times the odor-eliminating power to... ...remove odors you've done noseblind to [inhales] mmm. use febreze air effects, till it's fresh and try febreze small spaces... ...to continuously eliminate up to two times the odors... ...for 30 days febreze small spaces and air effects, two more ways... [inhale + exhale mnemonic] to breathe happy.

goorng. global markets on alert as the dollar is rebounding. hinting a september rate hike. we'll see what happens between then and now. it's a long way off. job cuts. sisco report to slash 50% of work force. donald trump naming kelly ann con way as campaign manager. it's wednesday, august 17, 2016 and "squawk box" begins right

now. . good morning and welcome to "squawk box" here on cnbc. i'm michelle. becky is off this week. andrew is live in rio reporting from the olympic games. we're going to get to him in just a minute. hello. first we're going to show u.s. equity futures up this hour. dow would open higher by 14 points. s&p a little more than 2. nasdaq by 5. overnight in asia, flat for the shanghai comp barely. nikkei was higher 1%. hang sang was lower half a percent. through is lower nearly 1%. germany.20%. france, ftse, spain all lower as well. taking a look at the