good morning. the big milestone. the dow pushing past 20,000 finally for the first time in history. border backlash. mexico puts up a fight after president trump inks orders to build a wall and crack down on immigrati immigration. and johnson & johnson agrees to purchase actelion for $30 billion. it's thursday, january 26, 2017. "worldwide exchange" begins right now. ♪ good morning. welcome to "worldwide exchange" on cnbc. i'm sara eisen along with mike

santoli in for wilfred frost. i can't believe wilfred missed out on 20,000. >> i was waiting for it longer than he was. since i was around and working when it first hit 10,000. >> sense he's not here, i can say i'm happy to have you here for it. >> i gave you the chance to predict it yesterday. you didn't jinx is by saying for sure. >> it's throwback thursday, we're throwing it back like it's 1999. that's the year the dow hit 10,000. "i believe" cher the number one song that year. >> a year of a lot of believing. >> then what happened? i was in high school. a check of global markets. the dow closed firmly above 20,000. really nice broad gains across the board. the s&p 500 closing up 0.8%. the nasdaq soaring a full percent. guess what? the strength is continuing this morning. dow futures are up 53 points.

s&p futures up 3. nasdaq futures are up almost 15 points. the dow, s&p, nasdaq, s&p 400 mid caps, nasdaq 100 all hitting all-time highs. not just the dow. boeing, home depot, visa hit highs during the session. president trump weighed in on the milestone during his first tv interview since his inauguration late last night. >> i'm very proud of that. very proud of that. the business community and the labor community, you say that with the labor leaders that came out. one said it was the single greatest meeting i've had with anybody. the dow on top of it just hit 20,000. first time in history. i'm very proud of that. now we have to go up, up, up. we don't want to stay there. >> big league. mike pence tweeting the dow closes above 20,000 for the first time in history. u.s. economy is being unleashed under president trump. he does get some credit for

this, i would say. >> i would say he gets credit as a catalyst for focusing attention on the potential of what economic policy could mean. i don't think any politician will let this opportunity go by to weigh in and take some credit. >> a few days in office. >> on the other hand he was calling the economy and the market a giant bubble a few months ago. >> before he came in. >> the optimism surged. the dow is up about 10% since the election. >> as you pointed out, it's not just about the dow. the dow is another way of telling the story of the broad market indexes are at all new highs. >> which are all up. i'm surveying the front pages to see how big and prominent it is, how euphoric it is here's "usa today." didn't make it above the fold. it's below the fold. dow finally crosses that magic mark 20,000. there it is in the "usa today." i don't know if this is a late edition of the "new york times" or what, but it's not on the front page here. it's on the front page of the business section. what's the level of euphoria

now? >> the word finally in the "usa today" headlines are interesting. people feel as if we've been waiting for this. >> it was the second quickest climb. >> but also the smallest percentage. people have been waiting to at least sort of commemorate this. i don't think anyone is viewing this or treating it as now it's time to pile into the market or be scared out of the market. >> for me, the point i would make, because this is "worldwide exchange," this is a global move. this rally has really translated overseas. global stocks are at highest level since 2015. the optimism and consumer sentiment could fuel things. in the financial times, someone said will trump make europe great again? you might think an america first policy only benefits america, but if consumer confidence is rising, that helps europe.

and even an america first policy could lead europe to implement its own stimulus pro-growth policies. >> we were talking about 1999. in the '90s it was a cliche that the united states was the growth engine of the world. europe was always broken and coming along for the ride. i'm not saying we're in that position again, but when the biggest economy in the world is entering a new speed, perhaps a higher speed -- >> lifts all boats? >> though we were hitting a strong patch in the global economy. fresh data out of europe. the british economy did not show signs that it was slowing at the end of 2016. uk gdp rose 0.6 ending in december. that's above expectations of 0.5%. the market reaction there. modest follow-through to the dow's move above 20,000. a half percentage point give or take across germany, france, the ftse and italy.

also -- we have asia. >> it's on top of a 1% move higher yesterday. asia also following through. markets in australia, india, taiwan, vietnam are closed for a bank holiday. japan went up 1.8%. loving that weaker japanese yen. the strength in the u.s. shanghai comp closing up 0.3%. hong kong continuing its outperformance, up 1.4. broader markets outside of equities, look at the ten-year treasury note. this has been the green light for stocks to perform. you want to the see yieed to se again. got above 2.5%. the high for this was 2.62 aftd el after the election. >> this is also a global phenomenon. higher yields. there's been a dramatic move of selling bonds, pushing yields higher. >> we see oil is also firming up

from yesterday's small losses. there you go. still in that range, 53. a lot of talk about how the speculative money is a bit too much behind this bullish move in crude. for now the commodities continues to hold in. the dollar, this was not one of those things that held to pattern. we saw a slightly weaker dollar in terms of the u.s. dollar index. you can see that again this morning. it's on the mix. definitely a weaker tone. we'll see if any of the trade talk or anything else seems to be influencing that. look at gold. this is not really the kind of environment where gold will tend to perform. under $1200 an ounce. adding to those modest losses. >> it's interesting that the dollar is continuing its weekly run of losses. >> yeah. >> feels like bonds are more in charge. bond yields tick higher. stocks follow suit. you did see the losers in yesterday's session were the utilities, consumer staples,

telecom, rate-sensitive stocks. >> pro cyclical groups were up there. president trump taking the first step towards building a wall along the mexican border. he signed two executive orders yesterday initiating a series of actions to curb illegal immigration and begin construction of the wall. and add more border patrol and i.c.e. agents. the orders will cut off federal money to so-called sanctuary cities. >> we will be in a form be reimbursed by mexico. >> they'll pay us back. >> yes. >> so the american taxpayer will be paying for the wall at first. >> we will be reimbursed for the wall by whatever transaction we make with mexico. >> mexico's president saying mexico does not believe in walls. mexico will not pay for any wall. the mexican president was expected to come to washington next week. his team said it is possible

that won't happen now. michelle caruso-cabrera reports that the mexican finance minister was at the white house for ten hours yesterday and remains in d.c. we'll continue to watch word from the mexican president to see whether he visits. as for the peso, kind of surged yesterday on that trump news conference. i don't know if it was sell the rumor, buy the facts. the peso has declined sharply over the last year. >> you are seeing some interpretation of president trump's remarks maybe being softer or more nuanced. so will his policies succeed and continue to fuel the rally on wall street? >> the fuel for this rally has been economic policy actual and expected. if we persist with signals that the trump administration will

move on deregulation, will move on tax reform, infrastructure, and if we persist with more constructive comments like today on mexico, then this rally will both extend and deepen. but this is a big if. it's all down to policies right now. >> there's those constructive words on mexico. joining us with his take, art hogan from wonderlic securities. thanks for joining us. >> thank you very much for having me. >> we hit the 20,000 milestone. what do you do next? >> we keep saying finally. this was a rapid rise, the last 1,000 points. the second fastest ever. what you do next, the good news is this really wakes people up that don't watch us every day. i know it's shocking to you and i to believe people don't knfoc on the market every day and people may read this and say something is going right whether it's in the economy or earnings, and that's helpful. it's at a time when those same people are making decisions

about what their asset allocation looks like, that's real good news. i think putting this in the rearview mirror or talking about this a little bit less may help us shift our focus to earnings. we had 103 s&p 500 companies reporting this week. five dow components. they're not getting the kind of attention they should. because the combination of the dow 20,000 watch and the fact that we continue to have executive orders being signed on a daily basis, that makes us forget for a period of time that the fourth quarter earnings are coming in much better than expectations. we may get a 5.5% clip for the s&p 500. continue to focus on the fundamentals, and hopefully the rhetoric out of washington is more pro business pro growth and less protectionist so we have a tailwind from that. you mentioned a lot of team have not been paying attention to the markets, and we hit 20,000, it's an occasion for people to notice. what about the people that look at this and say this is the beginning of something when, in

fact, we'll be getting to the eighth anniversary of this bull market. we've been going up for a while. those fundamentals are supportive now. how do you scale the opportunity here in terms of where we are in this cycle? unfortunately that's the same point, you and i would have made at dow 15,000 and 10,000. for a long-term investor, the asset allocation and looking at what your time frame is is important. so to the extent that you were that guy that said after the dotcom bubble i'm never going back there again or after 2008 i'm never going back there again, this is the final wake up call to say things are getting better, this is the time to get into equity exposure, whether it's a mutual fund, etf or stock selection. i'm not saying now is the day to rush back into the market, but this momentum feels like it can carry us for a period of time. if we pass off monetary policy to fiscal policy and get some tailwind behind this market we

may have some legs here. >> art, investors need to be wary of certain stocks that will be targeted by this administration. we saw that in pharma stocks. where would you avoid if you're telling your clients this has momentum and will continue. what gets left out there? >> that's a great point. the three things you want to be the most careful with is what will make this market roll over certainly is more protectionist talk. a trade war would do that. the dollar getting too strong, too high, too fast. but i certainly think if you look at 2017, you probably want to avoid things like the dividend darlings that are still expensive in a rising interest rate environment. i certainly think healthcare is a no touch land, because we don't know where that comes down. the ibb has been beaten up here. i think healthcare, and consumer discretionary is a place to stay

away from. we don't know how to read what the consumer is doing. we had better than expected christmas season, yet every retail we spoke to is closing doors, trying to figure out how to fight against amazon. >> retail continues to suffer under amazon and the border tax. >> for sure. >> art hogan, thanks for joining us. some m&a news. a $30 billion pharma deal. johnson & johnson is buying actelion after weaks of talks. both companies boards have approved of the deal. part of the deal spinning off actelion's research pipeline. rbs is setting aside nearly $4 billion to cover future settlement with u.s. regulators over the sale of toxic mortgages before the financial crisis. the provision will be taken as part of the uk bank's full-year earnings. the justice department is probing criminal and civil

issues related to rbs' sale of mortgage bonds during the housing boom. the bank set aside 5.6 billion to pay for a settlement with the federal housing finance agency. shares of qualcomm slipping after the company posted mixed results. earnings coming in a penny ahead of estimates. a south korean government fine for anti-competitive tactics weighed on results. the company said the revenue forecast does not include any impact from the legal action from apple. at&t's earnings watching wall street's estimates. the company adding more smartphone customers during the latest quarter but continues to lose mainstream phone and video customers. at&t said it is confident its deal to buy time warner will be approved. that has been sort of an interesting one. wondering what the trump administration will say on that one. came out against it on the

campaign. bashed cnn a few times since then, but no word after randall stephenson was in trump tower meeting him. >> and this pick for fcc does not seem hostile to m&a in the media space. today is the busiest day of the earnings season with 38 companies in the s&p 500 reporting results along with three dow components. before we get the open, numbers from biogen, caterpillar and comcast, the parent of cnbc. and from ford. after the close, results from alphabet, intel, microsoft, paypal and starbucks. also a pair of economic reports on today's agenda weekly jobless claims are out at 8:30 a.m. eastern. that's followed by december new home sales at 10:00 a.m. when we come back, the stocks to watch. a few earn ings movers in europ, unilever and diageo. first a look at leaders of the march to dow 20,000. united healthcare up 548% since 1999 when the dow hit that 10,000 mark.

and, of course, we end with tlc, throw bacck throwback to 1999. "worldwide exchange" will be right back. bp engineers use robotic ultrasound technology, so they can detect and repair corrosion before it ever becomes a problem. because safety is never being satisfied.

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welcome back to "worldwide exchange." if you're just waking up the morning after the dow hit 20,000 for the first time, let's get you up to speed on early market action. dow, s&p and nasdaq looking to add to yesterday's gains, all three indexes also at record

highs. also turn to the bond market. ten-year treasury note, that's been a key tell of whether the stock market was going to perform in a given day. higher yields meant higher stocks. looking for another small move higher, 2.54% on the ten-year note. that's just below the 2.62 we got back in december. that's been the high for 2016 and since the election. >> earnings very much fueling this rally. some stocks to watch there this morning, mattel falling short on both the top and bottom lines. the toymaker citing lower than usual holiday sales and increased foreign exchange headwinds. united rentals is buying nes rentals for 956 million in cash. uri says the deal would expand its presence to the east coast, gulf states and midwest. ebay reporting earnings in line with street estimates. the company's ceo said ebay was the second most visited commerce site in the u.s. in the holiday

season. and cover my meds is being bought for $1.1 billion by mckesson. mckesson also reporting earnings and revenues coming in slightly below wall street forecasts as the pace of drug price hikes sloweded down. diageo reporting better than expected sales for the second half of 2016 thanks to an improving u.s. market. speaking to cnbc earlier today, the ceo said he is confident the company can hit its full-year target of single digit growth. diageo up 4%. >> one thing in diageo, i hope jim cramer is listening, he told me to pay attention to latin american results, so much better than expected. diageo no exception. double digit growth for sales. that was a bright spot in this global report. we'll talk to the ceo later on

"squawk on the street" and ask him how these tensions affect the business. ericsson slashing its dividend as the telecom market was pushed to a fourth quarter loss. the results cap a tough year for ericsson which replaced its ceo, announced cost cuts and layoffs. the stock bouncing this morning. unilever reporting slower sales in 2016. the company blaming brazil's economic crisis and recent demonetization in india. unilever on the down side, 4%. oprah is teaming up with kraft heinz forming a joint venture called meal time stories. it will make ready to eat refrigerated products. 10% of profits will be donated to charities focused on ending hunger. i remember when weight watchers was owned by heinz. that sold in 1999. oprah is a stakeholder and on

the board of weight watchers. >> so there's the connection? >> i don't know if that has anything to do with it. >> i was wondering why kraft heinz was not up 50% on that news. >> tougher to move than the weight watchers stock. jose cuervo looking to raise $700 million in an ipo. they will price shares 30 to 34 pesos each. they put their ipo on hold twice last year due to trump. and canada's alta gas will buy wgl for $6.4 billion. altagas says the deal will add 7% to 9% in earnings in the first full year after it closes. when we come back, more from the experts on this global market rally. stay tuned, you're watching

"worldwide exchange."

welcome back to "worldwide exchange" and good morning. let's get you up to speed on the market action, a day after the dow closed above 20,000. records all around for the s&p and nasdaq. the momentum is clearly with the bulls. dow futures up 50. s&p 500 up 3. nasdaq futures up 13. heavy day of earnings.

so fort read on earnings has been strong along with policy enthusiasm from the trump administration. the dollar continues to not join as much in this party. you had been seeing the dollar marching higher with stocks. that's broken off a bit lately. dollar stronger this morning has joined the party late. up almost a percent against the yen. stronger against the pound. weaker, though, against the peso, which continues to bounce a bit. >> the u.s. dollar index below 100 still. still to come, a rally on wall street. a round up of global markets straight ahead. and this is becoming a global story. >> sure has been. plus we'll tell you how tostitos's newes back of chips wants to help you drive safe on super bowl sunday. cathy's gotten used to the smell of lingering garbage...

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. good morning. dow 20,000, the march to the milestone. and where stocks are likely to go from here. animal spirits, breaking deal news. johnson & johnson agrees to purchase actelion for $30 billion. it's thursday, january 26, 2017. you're watching "worldwide exchange" on cnbc.

good morning. welcome back to "worldwide exchange" on cnbc i'm sara eisen along with mike santoli in for wilfred frost. if this doesn't say 1999, britney spears, i don't know. >> two days in a row we have invoked britney spears on the show. >> today it is throwback thursday, and we're throwing it back like it's 1999. the dow hit 10,000 in that year. "baby one more time" was a top ten hit. one of the best songs ever. >> even i remember that. >> yes. let's check in on the global markets. the strength continues for u.s. equity futures. we have a mini rally going on here. building on the record closes all around for yesterday. dow futures are up 46 points. s&p is up 2. nasdaq futures are up 13. global markets are going strong. building on what we saw in wall street yesterday. here's a look at the dow since the election of president trump. it's up about 9.5%. it's not just the dow. the index of small caps, the

russell up more so since the election. s&p 500 is up about 6.5%, 7%. >> 7 plus. >> and the nasdaq up higher since then. it's broad and tech has joined the party. europe as well is in the green this morning building on 1% gains we saw in yesterday's session. german dax up a half percent. ftse in the uk underperformed. in asia, the nikkei was the real winner in the session. up 1.8%. shanghai comp up 0.3%. the hang seng continues to outperform, 1.4% higher for the day. >> a lot to of talk yesterday, the break out in the world index. basically everyone included in that one. not a new all-time high. but certainly steepened the rise. outside of equities, you see oil, it's firm, as is natural gas. doesn't seem like a real big move or poised to move out of

its range it has been sitting there in the low 50s in terms of wti and crude. ten-year note, treasury market yesterday had actually kind of a weak auction of five year securities. that put the five year note yield close to 2%. people focusing on that. you have a bit of air underneath the ten year, 2.55 just about right now. that's threatening the recent highs in yields. that's been a reflation risk on message from that market. dollar, another look at the currency -- oh. there we are. >> dollar stronger. >> bouncing a bit. yes, it was to the down side yesterday. then gold has been a little bit neglected. >> it's a risk takers world. as the global outlook for the u.s. improves, will that translate into gains for the world economy. next week is a busy week when it comes to jobs numbers. we'll look for indications of

whether the confidence boost since the election, consumers, home builders, businesses, investor is translating into the real economic data. but some say this market is looking out 2017/2018 for the stimulus measures, corporate tax cuts kick in. >> i think investors want to make sure we're not in for another first quarter soft patch, which we had three, four years in a row. that would maybe muddle the picture. >> and the earnings have been good. today is the busiest day of all for earnings season. 38 companies in the s&p 500 reporting results along with three dow components. before the open we'll get numbers from biogen, caterpillar, comcast. the parent of cnbc which has been on a roll since the election and ford. after the close, alphabet, intel, microsoft, paypal and starbucks. there's also a pair of economic reports. weekly jobless claims, thursday, out at 8:30 a.m. eastern. followed by december new home sales.

the housing market has been strong. there was a fear that the rise in treasury yields and mortgage rates would slow down the momentum. have not really seen that. >> i think existing sales were not great. home builder stocks, a small segment of the market, it has been on a roll. >> home depot also. >> the supply/demand story is okay. >> we'll watch those sales later. starbucks is reporting. landon dowdy has three things to watch when it reports after the bell today. good morning. >> good morning. the street is looking for starbucks to report earnings of 52 cents a share on revenue of $5.9 billion. look for traffic growth at the coff coffee giant's u.s. stores has slowed. starbucks missed sales targets in the u.s. for four quarters. investors wanted to know if and when the company can deliver on its promise of 5% same-store sales growth in the u.s. again. second, starbucks premium.

howard schultz announced steps to step down and build higher end cafe stores. so you want to listen for stories on sales trends at its first roastery in seattle. and technology has been a key sales driver for starbucks. it's trying to get more customers soin esigned up for t rewards program. the company recently started pe personalizing the rewards program based on ordering history. the stock is up 9% over the past three months. >> interesting to hear if there were comments about china. the china market important for starbucks. >> that's right. and opening the first roastery in 2017 in shanghai. that will be something to watch as they open these higher-end cafes and on-site roasteries.

>> thank you very much. we were sitting on set when the announcement of howard schultz was saying he was going to step down. investors are kind of looking at what will happen in that world. >> and there was word that he was expected to join a clinton administration. there was a timing issue. back to the markets and the push to 20,000. we heard from jeremy siegel from the wharton school on closing bell last night who mentioned currency moves as a potential factor that could devalue this rally. this rally could go quite a bit further. i think there's still the uncertainty about the administration. if they go into protectionist mode, start a currency war towards massive tariffs. i think you can forget it. as long as they're moving towards less regulation, tax reduction, corporate tax reform, this is not over yet.

we could easily see another 10% or more this year. >> let's discuss further with steven englander, from g 10 fx strategy. dow is at 20,000. we'll ask you about stocks first. clearly all of these moves are interconnected. "new york post" goes with mary tyler moore on the cover, no mention of stocks. nothing on the "washington post" k cover. the "wall street journal" gets top billing for the dow hitting 20,000. what are you hearing at the trading desk as far as the level of euphoria and where that takes us next on this equity move. >> i think clients and colleagues are taking notice whenever you hit a new -- you could call this a big, big, big figure. it's something to take note of. i have heard some concerns that the -- if you take the ensemble of measures that the administration and congress are discussing, that we may initially get, you know, stock

market continuing to rally. there's lots of good stuff, lower corporate taxes, repatriation, all the nice things there. but ultimately the dollar strength and the pressure on margins that will emerge from the incentives to higher label and bid up wages when we're already close to full employment, there's some concern this rally won't have multiple year legs but legs over the coming months. >> we've been discussing how in the last couple of days you had a softer dollar co-existing with this move to new highs in equities. not to draw too tight a linkage, but what do you make of the dollar backing off? . i don't think they're related. if anything the equity rally, the investors are positively surprised by the deregulation agenda that the new president seems to be putting in place. the dollar story is mostly the fiscal story. we really don't have much new information.

the market bought into it in november and december. we are still hearing this toing and froing about tariffs, border countries, whose fiscal plan and what it will include. that uncertainty is weighing on the dollar. whereas the rapid use of executive authority to deregulate parts of energy and put other measures in place, that's supportive for the equity market. >> what do all the traden it shuns mean for the dollar? is it positive or negative or do you just have to look at a country by country basis, like, for instance, the peso? >> i think that's going to be the big debate. my guess is that we'll end up with a broad dollar positive trade measure because the republicans need something like those border taxes to pay for

the inscentives they want to build into the tax program. >> what would that do to the dollar? >> it would strengthen the dollar, but that won't stop president trump from trash talking the dollar against the peso or china. he won't be super effective in getting the dollar down because the ensemble of measures are dollar positive. he'll be sniping at countries that he considers to be unfair traders. >> so you predict euro/dollar parody, do you predict another wave of dollar strength here? >> if the congressional bill goes through with the border taxes, with the tax reductions, with repatriation, we get stimulus, euro/dollar could be below 90. this is like the reagan move in 1981. you any, i think that's going to be the dominant force we're at or close to full employment. we will get more stimulus. some of that has to be abroad, because we don't have the capacity to meet it domestically. part of that mechanism is a stronger dollar.

so i think that will be the way it works. but it won't stop the administration from complaining about currencies. i don't think they'll be effective. >> steven, thank you. steven englander of citi. would that be painful for the manufacturers in this country. >> manufacturers, in theory, just global financial markets might not be able to accommodate that. >> well, we'll watch that. johnson & johnson is buying actelion for $280 per share in cash after weeks of exclusive talks. that's a 23% premium to its closing price yesterday. both companies boards approved the deal. part of the agreement includes spinning off actelion's research and development pipeline. it is time for top trending stories now. tributes honoring the life of tv icon mary tyler moore pouring in all over social media. moore was best known for her roles on "the mary tyler moore show" and the dick van dyke show. former co-star ed asner tweeted i will never be able to repay

her for the blessings she gave me. dick van dyke taking to facebook and twitter saying there are no words. she's the best. patricia arquette tweeting thank you for your kindness on "flirting with disaster" and always making me laugh. everybody. a lot of women in television thanking her. >> it was unanimous. dick van dyke still going himself. >> still going. and using social media. who knew. tostitos launching a new bag of chips that doubles as a breathalyzer. in honor of the super bowl the tripmaker is offering the party safe bag. if the bag decides you have been drinking, a red steering wheel will appear with a reminder not to drive. it also comes with a code for a $10 uber discount valid for super bowl sunday. >> you have to have a lot to drink for your tostitos bag to pick up your breath. >> it is fairly sensitive. it won't give you a blood

alcohol content. it will detect if you have any on your breath. you have to be eating them out of the bag, right? >> you have to be breathing on the bag. >> yeah. >> maybe that $10 uber -- >> let's test that out. when we come back, the must reads. check out the dow now and then. check out the comparisons from october of 2009 and today. stay tuned, you're watching "worldwide exchange" on cnbc.

welcome back to "worldwide exchange." time for our must-reads this morning. my pick is in the "washington post." this is george will writing does president trump know that one american company may be destroying more american jobs than china is, and this december construction is beneficial. he is referring amazon, jeff bezos, saying if you look at the number of retail jobs lost and disruption caused by amazon, it dwarfs what other things president trump is saying. he is saying you can't stand in front of global disruptions and making a lonely conservative point for freer trade and enabling the global markets to

figure out how to allocate jobs and capital. this is one of the criticisms. you hear that trump can't stand in the way of automation, globalization, the counter point is not trying to, just trying to make good on his promise to get more factories, more production and jobs back in the u.s. even if he moves the needle a bit -- >> 12% of our economy, not our jobs. >> correct. >> he wants to kind of be able to declare victories, slow the process and get some wins here. >> we'll watch those jobs numbers carefully every single month to see what kind of jobs we're talking about. the u.s. economy creates millions of jobs per month, it gets offset by how many jobs we have lost. we end up with 100,000, 200,000 on a net basis. that jobs number next week will be important. >> we're watching the top of the hour. the team is getting ready for

"squawk box." becky quick is in new york with a look at what's coming up. good morning. >> good morning. i have a bit of a secret. come closer. you know what we'll be talking about today? >> does it have to do with dow 20,000? >> it does. we'll be dow 20,000 blah blah blah all this morning. it's a round number, a lot of serious investors will tell you it doesn't matter, but it matters from the perspective that it will get retail investors attention. this was on the broadcast newscast last night, on every radio station. the speed of it, the last 1,000 points has been phenomenal. 43 days to get the last 1,000 points. that will get investors attention, making them wonder if they missed the boat. we will have people joining us to talk about that this morning.

as you know, the earnings parade continues. just this morning we'll be getting results from comcast, our parent company, also dow chemical, northrop grumman, ratheon, bristol-myers, baker hughes, a ton of companies coming in. ford and southwest airlines. we'll be bdigging into those numbers with ford's ceo, mark fields. and gary kelly, the ceo of southwest airlines. we're continuing to talk about the first 100 days of the trump administration. for more on that we'll be joined by congressman chris collins on what to expect next. action is coming at a blistering pace there. guys, we'll talk about all of this coming up in under ten minutes. we'll see you at the top of the hour. >> a lot to talk about. see you at the top of the hour. when we come back, rich clarida shares his thoughts on the dow's climb to 20,000. stay tuned.

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welcome back to "worldwide exchange." u.s. equity futures are building on the recent rally that brought us to record highs, and brought the dow past 20,000 for the first time ever. closing above that level. with us now is rich clai dshgclm pimco wh pimco. what are you telling your clients now that we reached this milestone and investors are looking at this market that has climbed so far so fast, tripling since march of 2009. how much more opportunity is there? >> i think the dow had some important tailwinds. the global macro data has been improving since the fall. you have earnings rebounding. we went through a tough patch where earnings were negative because of oil and the dollar. earnings year over year will be

positive. and the effect of trumponomics, we know the direction, more fiscal, more infrastructure, and all of that makes sense. on a going forward basis, we're at a late stage in the business cycle. close to full employment. an issue about how much of trumponomics moves inflation versus real growth. the move in equities makes sense. the risk right now sara and mike is there is some execution risk this year. there are moving parts in doing tax legislation, let alone immigration and trade. so it may be a while before we actually have resolution on what this is all going to look like. the direction is clearly positive. >> in terms of the things moving in the right direction as far as the markets are concerned, you see it on a bunch of fronts whether it's inflation rising but from low levels, interest rat rates rising, but not pinching consumers. oil prices in a comfortable range.

where do you think the threshold is where those things pinch and become a problem? >> if this surprises on the upside to the point that it engages the fed to get more hawkish, it begins to change the calculation. as you mentioned, you described a goldilocks scenario. if we get the yellen fed more hawkish, that is a risk. geopolitically and the u.s./china relationship longer term will also be a risk. i would also point out, we have a big transition at the fed. there are two vacancies at the fed. chair yellen and fisher's terms are up next year. president trump will probably fill most if not all of the fed chair sets in the next few years. >> is there a risk over a

trump/yellen showdown. he voiced his concern about a strong dollar. is this something that investors should be nervous about? >> it's been a long time. i can't remember the last time you had a president weigh in on the value of the dollar. this is a new wrinkle in currency markets. i don't think we see a showdown between yellen and president trump. she certainly won't admit it. i don't think she's following the tweets. the fed is in liftoff mode. they are alert to the fact that they will be getting stimulus. but i don't see a showdown with trump, no. >> rich clarida, thank you for joining us. what are you watching today? >> earnings after the close. a bit of a test for the nasdaq. you have the big tech stocks and starbucks after the close. which have joined this rally. >> nasdaq has been outperforming year-to-date in 2017. >> i'll be looking for the color commentary on the trump policies, like a border

adjustment tax, corporate tax reform and the rest of the world which is improving. that does it for us. "squawk box" is next. e? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley

we did it. a market milestone. the dow closing above 20,000 for the first time in history, and now breaking deal news, johnson & johnson agreeing to purchase swiss biotech firm actelion for $30 billion. it will be a busy morning for earnings. we'll bring you results from comcast and caterpillar, plus first on cnbc interviews with the ceos of ford and southwest airlines as soon as those numbers hit the tape. it's thursday, january 26, 2017. "squawk box" begins right now.

♪ live from new york where business never sleeps, this is "squawk box." good morning. welcome to "squawk box" here on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. look at the u.s. equity futures at this hour. 24 hours ago is when we first realized we were likely going to push over 20,000 for the first time. that happened yesterday morning right after the open. managed to close above 20,000 as well. dow futures this morning indicating up by 26 points. s&p futures up by two. the nasdaq 12 1/2. the dow, s&p, nasdaq, s&p 400 mid caps all hitting highs yesterday. boeing, home depot and visa logged record highs. and trump weighing in on the milestone during his first television intervi