mplts good morning. today's test for the market, housing and oil. two key indicators could drive trading on wall street. developing out of italy. dozens of caussualtiescasualtie details straight ahead. clinton controversy. the latest as the presidential hopeful foundation comes under fire with trump calling her tactics of secretary of state, quote, pay for play. it is wednesday, august 24, 2016 and "world wide exchange" begins right now. >> good morning and welcome to

"world wide exchange" on cnbc. i'm sara eisen along with dom choo who is in for wilfred frost. let's check in on global markets. stocks yesterday closed 0.2% within a record high. looks like we've turned around. just before we turned around the show. >> just fractionally. >> not even fractionally. 0.04%. >> seven points on the dow. >> yes. seven points on the dow. 1.5 on the s&p 500. 4.5 on the nasdaq. we march steady -- drift, i should say, quietly steadily and higher. there are some stories buried beneath the flat stories. as for the ten-year treasury note yield, ahead of the big speech of janet yellen on friday. we're looking at better u.s. housing data. new home sales yesterday for the month of july. surprised everyone and rose to a

nearly seven-year high. >> the ten-year treasury note yield was 1.56%. it's 1.55 now. yes, you could say there's a lot of wait and see for what happens later this week with jackson hole. >> we'll get that existing home sale today. even better economic data has failed to lift bond yields in any meaningful way. >> there's hasn't been a huge catalyst. you can say the same thing about european equities as well. it's still that way today. more important significant picture because like what sara said, we saw a reversal in the u.s. picture. we saw weaker europe markets earlier this morning. now we're in the green for major markets over there. the germany dax up. cac in france up over half a percent. the ftse 100 in uk down by .10%. the ftse mib in italy up b by .30%. and the ibex 35 in spain up as

well. as for the asian session overnight. see again a nixed picture there. nikkei up .60%. shanghai off .10%. hang seng off .70%. >> >> oil of course continueses to give back some recent gains. wti trading lower almost 2% this morning. 47.27 after a pi reported a build in inventories last night. we look ahead today to the u.s. government inventory report. brent under pressure as well as natural gas. >> it's been a roller coast r ride. they've been drifting lower, spike high. >> every day there's a different feeling about whether opec producers are going to freeze production. >> some traders say another day, another opec rumor or some kind of a story about whether there's going to be a production freeze.

>> one factor that's been driving oil higher at least in the last week or so has been the weaker dollar. that's turned around this morning. let's show you the currency trade. we mentioned a stronger dollar. that is against the euro. back below 1.13. 1.1287. dollar is weak eer against the japanese yen. just a turn around. th the pound stronger against the u.s. dollar. >> still holding steady. right above the 100 mark of the dollar yen. >> important level to watch sdwl i've got a big yen piece coming out later this morning. i haven't written a piece about foreign exchange in a while. everybody has been asking me where this currency is going. it's one of the best performing of the year and the yen, dom is rising at the same time as the vix. that is something very unusual. >> it wasn't so long ago we were

talking about 1207 handle. >> february, 121. >> let's show you gold prices. some of that strength is putting a little bit of pressure on gold. do we have it? no, it's down. about a quarter of a percent. 1342. >> that's holding steady there too. >> sure. >> now the markets are overall holding steady, we are following a developing story out of italy this morning. a major earthquake hit the region of perugia. recorded around 9:30 eastern time last night. the city it hit is 70 miles or so northeast of rome. several possible aftershocks. at least one with a magnitude of around 5.4 recorded in the hour following the initial quake. as of now, 13 casualties. that number could be expected to rise. it's certainly a story we're

watching. this central part of italy, such a accuratecultural part. up brie ia . >> you know this area? >> you've traveled through that area before. it's effectively about 100 miles northeast. it's known in many ways for the agricultural it has there, olive oil producing region. one of the known olive oils out there. >> small towns and villages, you can see the rubble piling up. >> norcia, the city it's in, that is south eastern portion of up brieia. a central part of italy for sure. >> we'll keep an eye on that and bring you any details as they develop. back to today's market agenda. there is more housing data in focus. the mortgage bankers releases

weekly report on mortgage applications at 7:00 a.m. eastern time. mortgage apps for home purchases have been dropping. sticking on the housing front, 10:00 a.m. july existing sales forecast to drop nearly a percent after risings sharply, more than 1% in june to a near nine-year high. as for earnings, hewlett-packard reports. that is hewlett-packard inninc. 22% retail helped drive the gains in yesterday. a lot of people saying is bullish. even if it's coming off a low base and cheap stocks. >> it's been a very mixed picture for the retals. see if that carries into today's trade. now to today's corporate news. tesla's car are among the fa fastest on earth. go from 0-60 in 2.5 seconds

making it the fastest car in the world available to the public. ferrari and spider are capable of going that fast, but according to tesla's blog post, these limited run vehicles are expected to cost millions of dollars. tesla will be much less than that. still started at $134,000. new battery allows it to go 315 miles on a single charge. big deal. calling the new version, ludicrous p 100 d. not to be confused with the art itself. >> shares went higher in anticipation of the announcement. he hyped it up on twitter like he always does. >> showing solar city because it's a tied stock. making a bit to acquire. when ceo teased this announcement on twitter, shared

rose by the prices fell back when the announcement was made. by the rumor, sell the news. stocks to watch today. lazy boy. posting a surprise drop in fourth quarter sales. missing forecast. the recliner maker was hurt by weaker wholesale demand and lower foot traffic at the stores. shares took a dive after hours. now down 14%. >> mixed home improvement picture. some do well. >> not at home depot. it's been better. untu wintuit reporting a lo below analyst forecast t. maker of quickbooks and turbotax collects the bulk of profit during tax season and posts losses outside of ta period. the ceo is going to be on stock on the street. anymorenimble storage. the infamous marten skrully

known for hiking the price of the hiv medication, by 5,000%. is out defending mylan. upping the price of epipen 500%. that company is facing scrutiny right now, but telling cbs mylan is the good guy. >> i'm going to say something insensitive. everyone is thinking about the patience's family. no one is thinking about mylan. >> they may not make a particular amount of money off this particular medicine, but let's make sure the pharmaceutical companies. >> cbs and nbc have higher marge ins than mylan. >> shall i continue to say that mylan wasn't making much money by business standards and it suffered because it mostly focuses on selling cheap generic

drugs. those comments came as the salary was revealed. she's gone from making 2.5 million a year in 2007 to earning nearly $19,000,000 last year. shares have tumbled this week as lawmakers stepped up scrutiny and attention has come from every angle on this story. as back to school comes, the optics not too hot. spotify reportedly in talks with record labels to negotiate new contracts. the music streaming service is gearing up for initial public offering and books next year and in order to accident occur investors, the company needs to retain the rights to play music in years to come. currently paying 55% of revenue to labels and records. some labels want spotify to pay them as much 58% of revenues. that's what apple pays for apple music subscribers who aren't on

free trials. overall a story to watch. spotify gears up. after that amazon news. when we come back, what's driving across the pond. data to talk about. one year than the flash crash that saw the dow crash 0 points in the first 10 minutes of trading. following data that raised concerns about the country's weakening economy. managed to come back. still closed down 588 points on the day. remember that fateful day last year. stay tuned. you're watching cnbc, first in business worldwide. ♪

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and voice mobility so your calls find you wherever you are. get some of our most advanced products at a great price with over $500 in savings. call today and ask how to get these savings plus a $250 prepaid card. comcast business. built for business. welcome back to "world wide exchange." let's get you up to speed on the market action so far. seeing green on the board. not by much. dow futures are up by 3 points on an index worth 18531. we'll watch that. s&p up 1 point. nasdaq futures up 4 points. all very, very small hairline gains to start the day, at least in early thin trading. let's take a look at the oil picture. seeing red right now. wti 47.29. that's off about 1.70%.

ice brent and crude down about 1.25%. sara, back over to you. >> three points might be all it takes to see a record high these days. this morning we saw europe's economy sow slow down of growth. >> good morning, that's right. when you rook at the german economic growth it was in line with forecast and holding steady on an annual basis. that's perceived somewhat as good news. we're not yet seeing an brexit effect when it comes to to doomsday economic scenarios that were predicted. we had solid data yesterday. stronger when you look at manufacturing rather than services. so far appears those figures are holding steady. the dog days of summer the real focus is on janet yellen.

the count down is underway. we also have some earnings reports in focus on the session. that's why you're seeing a bit of a mixed picture across the individual. you'll notice the ftse 100 only major market. this is due to weakness in basic resources that was brought on after results from glen core and weakness in other minors there. again core did report it was taking down debt part-time aile report a drop in earnings. that was a narrowing of a previous quarter. anglo swiss miner said it netted from the sale of stake in queensland mine. did expect to reinstate dividend next year at appropriate level. that is good news. have seen shock moving sharply by 4.7%. year to date looking at gains of 99%. some analysts saying there simply wasn't enough in the earnings report to push this

stock higher. off now at the bottom of the ftse 100 by 4.7%. on the other side of the earning spectrum. strong results coming. they are trading at the tom of the stocks 600. citing strength from the olympics. that's good news for the stock. offsetting fears for the moment over brexit. guys, back to you. >> thank you for the rundown of the movers in europe. when we come back, tech on the trail. the numbers that prove silicon centrally is with her. >> interesting with her. before we head to break, here's today's national forecast from the weather channel, jen carfagno. >> good morning. we're watching a couple of areas today across the country for storms. again in the midwest after big rainmaking thunderstorms overnight in wisconsin. today the threat goes from parts of missouri to iowa, stretching into illinois. thunderstorms potential severe weather here. we'll see active whether across

parts of the gulf coast. keep this as one of the quiet terre days. plus another hot one as temperatures go back the '90s. speaking of temperatures, it hasn't be too bad. not at record breaking leaving. temperatures in the mid 70s. get one more nice day in the northeast with low humidity. temperature starts back up on the rise later this week. enjoy this one day. we are keeping an eye on the tropics today. weather across the u.s. virgin islands. potential development getting into the weekend and potential impacts into the u.s. perhaps next week. che keep it tuned. meteorologist general carfagno. "world wide exchange" continues after 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

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>> welcomes r wback to "world w exchange." set to open record high. strength this morning. dow futures up 14 points. nasdaq up 5. watch earnings like hp inc. and william sew know ma. all ahead of the big jackson hole speech from janet yellen on friday. have a look to the u.s. open. we are seeing the dollar stronger. that's a bit of a reversal. stronger at least against the euro. 1.1276. weaker against the yen. always something traders are

watching cautiously. could be a sign of unease in the markets and the pound is stronger against the u.s. dollar continuing its rebound from last week. down 132.13. from markets to politics. hillary clinton coming under fire today following a new report about how do anymore do access to the clinton foundation while she was secretary of state. of course, hillary clinton has always been in the news for some of these types of transgressions. how important is this new dwom for the overall narrative. >> reporter: it's raising more questions about the overlap of her private charitable work and her work here as secretary of state. >> reporter: a new associated press analysis shows more than half the nongovernment people hillary clinton met with as secretary of state were also donors to her family's foundation. >> it is impossible to figure out where the clinton foundation

ends and the state department begins. it is now abundantly clear that the clintons set up a business to profit from public office. >> this as the fbi investigates 15,000 new he-mails not previously reported. >> this is no laughing matter. nobody is above the law. >> trump is calling for a special prosecutor to investigate. clinton's team continues to insist she did nothing wrong. the clinton foundations says if she wins, they'll spin off kbeshl activities and bill clinton will step down from the board. hillary clinton and tim kaine are focusing on hard to win states like arkansas. >> right now the polling would suggest it's an uphill push for us. >> reporter: the poll shows trump and clinton nearly even. >> focusing now on latinos and

african-americans. he's got an meeting are leaders coming up tomorrow at trump tower in new york. >> i know you just mentioned one, tracey, but which state would you say you're most focused on now we're seeing this gap in the national polls continue to favor secretary clinton? >> a few of them, florida is obviously going to be a big one. it's why donald trump is down in tampa today with the polls much closer than he would like to see down there. the interesting thing is it's not really just one state. remember years ago it was ohio, ohio, ohio. and clearly states like ohio and pennsylvania are still very -- colorado is still very important battleground states, but now we're seeing candidates on both sides going after the other side. we're seeing hillary clinton trying to compete in traditionally red states like missouri and georgia and donald trump trying to compete in traditionally blue states like new jersey. so it's a big map. it's hard to really focus. >> it's really scrambling the play on so many levels.

>> and only just begun. >> thank you. apple ceo hosting a fundraiser for hillary clinton later today. clin clinton appears to be the preferred president in silicon valley. says the tech industry has donated more than $3 million to her campaign versus $117,000 for trump. the wall street journal took a deep dive. trump has raised so little from silicon valley, it's less than rubio and bush did during the primaries. meg whitman, a republican now fund raising for clinton. >> speaking of apple. now marks five years since tim cook took over the job from steve jobs as apple's top executive. cook has successfully steered the company with nearly a billion phones sold, but only

introduced one completely new product and that is the watch. the stock had doubled. meanwhile up 88%. however apple reported a second straight decline in revenues in q2 following 13 years of growth. interesting story for apple compared to the overall market. >> one of the toughest jobs in the world. >> certainly. when we come back, top stories including the celebrities who are shelling out big money for hillary. plus a look at the hottest stocks of the summer. stay tuned, you're watching cnbc, first in business, worldwide. 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.

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good morning. today's test for the market. housing and oil. developing out of italy, at least 21 casualties after a 6.2 magnitude earthquake strikes. we'll have the details straight ahead. plus, can't stop the feeling. celebrities spreading the love and the cash for hillary clinton. we'll tell you which ones are and how much they're shelling out. it's wednesday, august 24. 2016 and you're watching "world wide exchange" on cnbc. >> good morning and welcome back to "world wide exchange" on cnbc. i'm sara eisen along with don chew who is sitting in this week for wilfred frost. >> music is appropriate, we'll tell you why later on. let's check on global markets. it was marginally positive.

let's take a look where they are now. still marginally positive. s&p up 3 points to start the day. at least the implied open. dow jones up 16 points. nasdaq showing a gain of five to six points as well there. perhaps taking cues from europe. across the pond seeing a generally positive tone to the markets there. dax and german up. cac and france up the same amount on a percentage basis. the ftse 100 in uk down .10%. ftse mib in italy up by a percent at this point. ibex in spain up 1% as well. mixed picture in the overnight session as we take a look at the asian markets because we did see a little bit of weakness in certain main markets there, like in shanghai and hang seng and hong kong. both off. that's mainland china. the hang seng in hong kong off .75%.

the notable always talking about the yen. it closed up .60 of 1%. oil is a story. wti 47.31. brent down a little less. we did get industry data from the americmeramerican me troil institute. inventory has risen. we'll get the u.s. data later this week and see if oil maintains early losses. as for ten-year treasury note yield, barely budging. tight ranges for the yield. 155 is where we are. you might have thought we wouse better yields. not much. see if existing home sales moves the bond market at all this morning. >> the dollar is stronger. that's a bit of a reversal. 112 .81. we go below that level we sat yesterday. the dollar is weaker against the

japanese yen. bare barely right now continues to be a theme. shameless plug for my yen piece coming out today. the pound continues to recover a bit, 132 .25 against the dollar. as for gold, always watching gold an a big fed week. we have the janet yellen commentary coming out of jackson hole on friday. we'll see about gold. if she suggests strengthen the economy and rate hike. could sell off even further. that's a big if. what would happen to stocks in that scenario. >> there's the market set up for you right there. we're also following a developing story out of italy this morning. a major earthquake has hit the region of umbria. was recorded at 9:30 eastern time last night t. city it hit is 100 miles northeast of rome. now several possible aftershocks. at least one with a magnitude of

5 .4 were recorded in the hour following the quake. as of now, at least 21 reported casualties. that number is expected to rise. you're watching live shots of the cleanup in the aftermath of what's happened over the past 24 hours in italy. specifically in this central region of umbria. >> continue to keep you posted on developments as we get them. turn back to the markets now. get ready for the trading day head is hans olson. >> good morning. >> i mentioned janet yellen. if she mentions putting a hike on the table in september, it's spirely possible we'll be talking about how ugly next monday would be. not unlike the dow 1,000 point monday years ago. >> it's a question of what they should do versus what they will do. would it be unusual for her to

talk about raising interest rates at this point? no. in fact, i've been of the view they should have been moving interest rates higher earlier this year as employment continues to expand, we've got great car sales, great home sales, unemployment is falling. uninflammation on a consumer level, operating between 175 and 225 so kind of on a consumer level. so everything is lined up for the interest rate normalization and the lack of it is creating more uncertainty. if it happens, i would expect a market pullback because people are so complacent about it. >> we put the facebook question to the viewers and readers out there. it has been a year since the august tur moimmoil. do you feet better about the

things today? >> what's you take on that. >> one thing has changed. it's an important thing. there's been a disconnect between earnings in the market and the economy. the economy is fine. it continues to grow. what's not happened is that especially in the large cap sector of the u.s. market, earnings have been on a downward trajectory over the last, five consecutive quarters. and similarly for the revenues, but yet, prices have gone up so the multiples are expanding. we're just under 20 times trailing 12 month earnings now. at that level, that's typically a danger zone. either the earnings start to pick up. you mark time. right, though allow earnings to catch up or you correct. we're making these new highs on seasonally low volume time of year and the volume that we've had recently has been below average, even on a seasonal basis. >> if we do see a pull back,

would that prove as last august did, to just be a big buying opportunity? >> it could. right. it could. depend upon whether we see a turn in earnings or not. i don't think she caused it. she's a catalyst for it. the conditions are right for it. if run in prices without a support of earnings gives you the -- you know, t ideal conditions. >> don't you think the backdrop is better, the guidance is better. the oil is better. shouldn't that improve the earnings setup. >> it should. i was expecting the earnings to turn in the third quarter. doesn't look like that's going to happen at this juncture. going to be back end loaded in q4. if that doesn't happen, it puts everything into a very hot crucible. >> very small time frame to get that all back together. >> a lot has to go right. >> a lot has to go right. it's a market set up perhaps for a bit of confusion out there. hans olson, thank you so much. now to our summer sizzler

series speaking of stocks. all season we've been tracking the top performing sectors in the s&p 500 and that stocks that are really heating up there in those particular sectors. landon dowdy joins us with her series. >> here's what consumer discretionary is among the best performing sector. sector sizzled to the top spot every summer since 2013, but this is the fifth best performer. as the fed continues to stand pat on raising interest rates, all of those things helping support the consumer. so which stocks are sizzling. urban out fitters up 44%. the parent company of free people and an throw poll apology posting upbeat last week. nordstroms and gap sizzling. the long awaited turn around is

gaining traction. specifically denim trends. we've seen a recovery in sales due to leaner inventories. back over to you. >> retailers led yesterday. i think it's an important point. definitely worth mentioning as a bullish factor for the market. >> we have more coming up this week. tiffany earnings coming out. that's going to be a huge story. >> best buy yesterday. >> the consumers drives two-thirds of the u.s. economy. all of these reports are ones we want to watch. >> very important sector. that's for sure. >> time for top trending stories now of the morning. justin timberlake and jessica beel hosting a fundraising event for hillary clinton. she took pictures with the celebri celebrity couple in a photo booth. timberlake declaring i'm with her. nearly 100 guests including

jennifer aniston, toby mcgwire. it was in the home of timberlake and beel. i think that was a last minute switch. >> scheduling conflict for leo. >> releasing the first teaser for the new celebrity apprentice in the post donald trump era. the video calling on inspiration from schwartz nagger's famous role. saying let's get down to business. it sure looks like a term nay terror. he aged well. the u.s. women's gymnastics team enjoying a night out seeing hamilton on broad way. later meeting the cast on stage after the show.

the senior vice president saying the team's attendance was meant to be and that simone biles coach would blast the hamilton cast album for the athletes while they were in rio. so clearly the ladies knew the music and they were happy to be there. >> big night ahead for cnbc prime tonight, sara, don't miss the premier of cleveland hustles. nba super star teams up with entrepreneur to give four aspiring business owners a chance to reach their dreams. also revitalizing an area in cleveland neighborhood. >> what's in there? >> flour and our credit recipe. >> if i invest in you, do i get to know anything about that secret. >> probably not. >> how many bag els do you put out. >> we put out a couple hundred a week. >> it was really something to see these guys hand making bag

el bagels. >> when you get your own space, 75% reduction. 25 retail. just a simple place, serve sandwiches. few seats to sit down. >> no cocktail list. >> no. >> isn't that where the money is. >> true. >> we'll have a flask behind the counter. >> p i like alan because he's a lunatic and gets things done. >> bagels in cleveland. >> i come from a small business family. these kinds of stories always fascinate me. don't miss the series premier, cleveland land hustles. newest edition and lebron james one of the producers. >> when we come back, today's must reads. first as we head to break, check out the european trade at this hour. green on the screen. european stocks moving higher. the ftse 100 is a notable exception. the dax is up .30%.

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picked "the washington post." hillary heel. her department when she was secretary of state. cathleen parker is the writer. i picked it because it was an interesting one come prk "the washington post." has been very friendly to hillary clinton according to donald trump. not this one. to republicans she says clinton is the liar. to democrats she's the target of a right wing conspiracy. both appear to be correct. the question for voters may come down this to this, how much has the absolute lack of clarity on a given subject or event caused? it's a good briefing as to some of the latest revelations from the e-mails, specifically from her aide and connections with the state department. the cover of the new york post is everywhere this morning. if you want to get a good read. speaking of everywhere, my pick is in the usa today and it's titled moth ball the

clinton foundation. it reads ending foreign contributions is a good step, but allowing them to continue for the first week of november looks more like an influenced peddling fire sell. this referring to the idea there are potential conflicts of interest or perceived ones at the very least about people who are making contributions to their foundation and then perhaps getting some kind of reciprocity for that particular contribution. to, again, this is all a lot of people are talking about on the political front. it's certainly in all of these newspapers. we'll see if it has an impact on the polls, which clearly favor her at this point. it keeps coming. it's a persistent issue she faces and not dealt with head on. the last we got out of her was on late night when they were laughing about it. it will all change during the debates next month. >> we're approaching the top of the hour.

the team at "squawk box" is getting ready. joe kernen is in new york with a look at what's coming up. i know you have a lot of ammunition. stuff to talk about in today's story lines. >> maybe at the next weekly press conference she holds she'll address some of the -- we wondered what would make someone so keen on, you know, even setting up a private server. what was there to hide? that was always the question. exactly what are we talking about that really needed to be kept out of the public view to such an extent. and i don't know. it's almost like without the blue dress, we would have never, ever known. it would have still be no, no, no. she's been discredited. that never happened. without the original, what was the first thing that started the who e-mail? this would not have come out either. i guess it was benghazi or something and one thing came after another and finally it's

all under the light of day and we see exactly how it worked. whether there's any quid pro quo in there, they are very smart. i don't think you can ever p connect the dots to a meeting, a donation to the clinton foundation and then some positive thing you can actually say it resulted from that, but anyone that did want anything, whether you were going to get it or not, the starting offer was right the check. so i don't know what happened. >> i assume you like the new york post cover today. >> it's nowhere else. at least i could find it there. >> it's on drudge, you're favorite website. >> it's not -- i looked at the "new york times" and it's. >> it's in the "washington post." not bad. that's why i pointed it out. >> all kind of stuff happening. >> it's not really the -- it's certainly not as much adds when trump thought that obama

actually travelled to iraq to found isis. that made the front page for like a week. noi, are you guys dunken donuts people or starbucks? >> we were just talking about that. we have dunken donuts coffee this morning. >> i'm a starbucks person, but i do like the donuts from dunken donuts. >> millennials go for the starbucks thing. i think the blue collar types and down to earth types sort of fit with the dunken donuts. >> yes. >> i like both. >> i like both, but why pay less than you can. if you're going to buy coffee, might as well pay top dollar for it. >> i'm not sure it's a flen yell thing, joe. >> i blame a lot of things on the millennials. >> why don't you ask the dunken ceo. >> eric trump is going to be on. he was walking by a couple of times our studio and the last time you know right in the

middle of the show we told him and he did stop back in and we have that coming. so there is a lot happening. that was a generic -- i bet you have a lot of things coming up. no, we don't have anything, dom. >> i knew it already. >> see you at the top of the hour. thanks. posting gains of the week. looks like the trend is set to continue. we'll talk about data and the fed speak that is ahead. jack calfry next. you're watching cnbc first in business worldwide. i asked my dentist if an electric toothbrush was

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good morning to you jack. >> good morning, sara. >> first on sentiment. what is your read right now. feels like there's a lot of skepticism and hating and questioning of this rally and whether it's justified. >> you can look at it two different ways. certainly valuations have been rising through the year and from that regard, i think that talks to people willing to look through the current challenges that we're facing around skperngs earnings declines and trying to look towards earnings growth coming. you look at the vix and investors are fearful, but not rushing to buy protection of what could be a pullback so on the whole, people are cautiously optimistic. >> jack, it's dom. one of the things we talked about earlier in the show was the idea we're a year removed from the turmoil we saw last august. are markets better off now than they were back then? >> i think the economy is better off than we were back then. look at jobs, look at wages. earnings have been lower than we

would have been a year ago, but that has really been confined to the energy sector and some of the capital industries that wind up feeding to the energy sector in particular. technology continues to post higher earnings. financial posting higher earnings on the whole. you look through and i think we are better off even if the s&p earnings level isn't necessarily higher. >> you mentioned energy. it wasn't long ago we tied every move to the market with oil prices and stocks overall. is energy still a linchpin for the overall market. >> energy went to lubricating the market and entire economy. in that regard, we look at energy and try to get a sense. does that sfwal ignal to us thed is getting better. it's pointing to more improvements than not. certainly find problems to point to within. words that two to markets with which are not growing as fast as would have thought.

energy now has moved off the sense it's a signal we might have real rescissionist or global economic challenges. we think back to january or february. today looks like a better place. not great, but better. >> let's talk about financials, health care and consumer discretionary. are you a buyer or some of these under performing sectors that have started to rotate into leadership positions lately. >> i have been a buyer in certain parts of health care. financials, the challenge with financials has been the interplay of when are we going to get faster growth and with faster growth get higher interest rates. what will be more likely economic discussions out of jackson hole may be interesting in terms of direction for rates. we want growth and ultimately comes down to more growth, the better we all are. >> jack caffery, well said. thank you for joining us. that does it for "world wide

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good morning. developing news out of italy. dozens of people displaced after 6.2 earthquake. hillary clinton under fire for e-mails. donald trump calling her tactics in his words pay for play. and tesla dialing up its cars to ludicrous speed. elon musk announcing a new battery to improve the car's performance. it will go further. 0-60 in 2.5 seconds. you leave something blind yehing

that fast. will the company's bottom line keep up. it's wednesday u august 24, 2016 and "squawk box" beginning right now. good morning mplts welcome to cnbc. we're following a developing story out of italy this morning. the magnitude 6.2 quake was recorded at 9:30 eastern time last night. about 100 miles northeast of rome. several possible aftershocks. at least one with a magnitude of 5 .4 were recorded in the hour following the quake. as of now, 37 reported de eed d that number is expected to rise. back to the market and today's agenda, housing data