good morning. it's decision day at the fed. investors await the key first policy statement since president trump's inauguration. apple snaps the slump. the iphonemaker reverses three straight quarters of slumping revenue. and president trump selects neil gorsuch, which could be a contested pick. it's wednesday, february 1, 201, "worldwide exchange" begins right now. sunset ♪ ♪

good morning. welcome to "worldwide exchange" on cnbc, i'm sara eisen. >> i'm wilfred frost. good morning to you from me as well. a pinch and a punch, first day of the month. do you remember that one? >> no. >> first day of the month. >> is that a british thing? a pinch and a punch? >> for the first day of the month. let's check in on markets. we did see gains across the board for these three indices for the month of january. albeit we ended down about 0.6% for the dow. the nasdaq and the s&p basically flat for the day. as i said, gains for january. there they are. the nasdaq the best performer, up 4.3%. the dow up 0.5. back to the futures today, we are expecting a positive open. gains around the rest of the world as well. 38 points higher for the dow. s&p 500 higher by 5, nasdaq higher 2.5. yesterday we saw a broad

risk-off day. the ten-year trefasury note slipped down to 2.44. the yield on the ten-year, 2.4 %. >> one factor that could be helping the dow, it's our top corporate story, apple. shares of the tech giant are rising on the back of the strong earnings report. profits and revenues topped estimates. the company reported a bigger than expected rise in iphone sales over the holiday quarter. we'll break down the results in a minute. the highlights for me in this report. i was lucky enough to be on set for closing bell. >> she says through gritted teeth. >> it was a long day. $695, that was the average selling price for the iphone. a record high it showed strength in iphone 7 pluses and people are willing to pay up for newer models, ahead of a big year. iphone 8 this year will be the tenth anniversary phone. they showed strength when it comes to mac units, also

strength in india, despite the demonetization. i guess people there, instead of going away from notes, going into iphone, they skimped on groceries as we have seen in unilever and other consumer names, iphone growth was strong. record revenue in india as well. snapping that streak of three quarterers in a row of declines revenue growth. they grew revenues to a record. >> those are all the positives. the negative is china another bad quarter. i wonder, yes, positive in india. that's good. once penetration in china got to 3%, 4%, sales did start to decline. other cheaper models came on. it's not as high cost a market, high price a market as in the developed markets. that's the question for india, can it only pick up the slack for a year or two and then will it decline? how pronounced is that decline in china? we had two bad quarters, is that a blip?

breaking economic data out of asia, the january factory activity expanding for a sixth month. 51.3 for january, a slight decrease from december, showing expansionary territory. also trade data out of south korea, january exports rising at the fastest raid te in five yea. hong kong resuming trading today. china markets still closed. most markets are back open. hong kong opening with a slight downturn, but broadly across the region gains. japan and australia up a half percent. india is the leader, up 1.5%. >> we have data out of europe. eurozone manufacturing pmi for january coming in at 55.2. that topped forecasts and beat the number from december. in the uk, pmi edging lower to 55.9 from december's 2 1/2 year

peak. >> the thing on the uk side, this data still strong, as you said, slight tick down. the producer price inflation within that for manufacturing showing the double edge sword nature of the falling pound. they are getting higher exports, but costs are picking up. that's the key question for the uk. does inflation pick up and offset the pbenefit for the falling pound. >> ftse 100 up a percent. france up more than 1%. dax up a firm 1% if we follow in europe's lead, this could be a rebound day for global markets that have been sort of down beat. it ended the month. even though stocks chalked up the third month of gains -- u.s. stocks for january. it ended on a lighter note. amid questions about how pro business president trump's agenda will be. and how much he's able to get done of the tax reform and the infrastructure spending if

democrats first position is no, and if he focuses on the more protectionist policies and the immigration orders. >> we saw more profit taking yesterday. the biggest decline in the dow, goldman sachs. biotech did well. just want to come back to that european data. overall the manufacturing pmi very high, 69-month high. the greek reading, a 16-month low. greek bond yields has legged up about a percent extra in the last week or two. there are some dates coming up in terms of treasury in grease. that has worsened the picture. not all positive. >> it's germany's fault. >> exactly. that's what mr. navarro would be saying. the broader markets, oil prices not doing too much today. up about a third of a percent. 52.9 on wti. the dollar, which was markedly softer yesterday, particularly against the euro, those talks from mr. navarro and the trump administration suggesting that other countries are weakening

their currency, particularly germany, suggesting to people that they won't want to see the dollar move higher, therefore we did see the dollar hit lows not seen since november against a broad basket of currencies. the big move was against the euro, close to 1.08. this morning at 1.079. the dollar rebounding against the yen, 113. gold higher by 0.2%. just flat snnow. >> that is a question, is this an administration switching a deck ladies long policy of a strong dollar american policy? it's the default line by any u.s. treasury secretary. it's in the best interest of the united states to have a strong and stable dollar. are we going to get a different word and policy from this president? navarro calling the euro undervalued. prurp sayi president trump saying other

currency as manipulatin currencies are manipulating their currency. >> i think this rhetoric can affect currency moves for a day or two, but then it comes down to the policy, if they're protectionists f we're going to have expansionary fiscal policy which will push interest rates to go up higher on the monetary policy front, that's tough. the interesting thing on the criticisms of germany, it's an odd one because there's probably better candidates to criticize. i think germany clearly has benefited from being in the eurozone, exporters have. >> it had to pay the most in the greek bailout. >> the currency has been anchored by the likes of greece. other candidates are bet tore kr better to criticize on that one. political pressures probably keeping it low, but it's not really germany's fault specifically. the ecb controls it, not the

german government. >> we could talk this forever. >> we've been told to move on. >> we have a big story this morning. president trump nominating federal appeals court judge neil gorsuch for the supreme court last night, filling the opening following the death of antonin scalia last year. it's on all the front pages this morning. eamon javers is in washington and has the details about what we need to know about president trump's pick. good morning, eamon. >> good morning. the president kept this one under wraps until the last minute. the white house going through extraordinary lengths maintaining the secrecy, even flying gorsuch in a private plane, staying at a friend's house in washington, so as to not alert the media he was in town. this was the moment last night when president trump unveiled his pick for the supreme court. >> today i'm keeping another promise to the american people by nominating judge neil gorsuch

of the united states supreme court to be of the united states supreme court. i would like to ask judge gorsuch and his wonderful wife, louise, to please step forward so was that a surprise? was it? >> the president there obviously pleased that it was, in fact, a surprise. though a lot of speculation had come down to the final two potential nominees. it's judge gorsuch who gets the nod. here's what we know about him. he's on the court of appeals for the tenth circuit. he's 49 years old. on a personal note, i'm pleased to see somebody 49 years old being referred to as a young pick for the supreme court. he clerked for byron white and anthony kennedy. he was a harvard law school grad, class of '92. he is often compared to justice scalia, and is a proponent of originalism, which means looking at the text of the constitution as you interpret the laws. this one is going to set up now

for a bruising political fight. democrats are still sore about how republicans handled president obama's pick for this see the, merrick garland last year, they did not hold a hearing or vote on him and blocked the president of the united states last year from getting his pick for the supreme court. the problem for democrats is they don't have the votes, guys. >> he echoes scalia's style. have we been going back and looking at the record? do we have any clarity on his position on business issues, labor issues? the ones that affect our world? >> sure. he echoes scalia's style, but not in terms of the tone. he's viewed as more mild mannered and less caustic than justice scalia was in his public writings. we also know that judge gorsuch is viewed as somebody who is a lighter touch in terms of regulations. somebody who is a bit skeptical of the government agencies

abilities to interpret the law for themselves. we know in the hobby lobby case he sided with that company. he held that federal law prohibits health and human services from requiring closely held for-profit secular companies for providing contraception as part of the healthcare plans. this is somebody who reviews religious freedom as a priority here. even when it comes up against federal government and in terms of businesses being able to operate the way they want to operate in terms of small, closely held private businesses. >> just to switch focus, we saw some of trump's other appointmenappointe appointme appointments, those to the cabinets still being delayed is that a major hurdle for the administration to get over or do we expect the bulk to be approved? >> represents an escalation of resistance from democrats who are fired up and inflamed by the president's actions on immigration over the weekend. their resistance ultimately will

be futile. democrats just don't have the votes in the united states senate to block all these nominees. they can boycott these particular hearings, but there is a mechanism by which republicans can force the floor votes in the united states senate and they will have the votes there. democrats had been optimistic, hopeful that they might get one or two of these nominees blocked. at this point it would be hard to pick one. though there are a couple of nominees hanging fire out there, particularly steven mnuchin where you see some skepticism among democrats that he told the entire truth about his off-shore holdings. that's one to watch going forward for treasury secretary. otherwise, no. democrats don't have the power in the united states senate to block donald trump. >> on the other end, for investors, probably not helpful that we don't have a treasury secretary. we'll watch that, eamon. thank you. >> you bet. back to this morning's top corporate story. apple's results, investors clearly liking what they saw from the world's most valuable

company it returned to growth. tim cook touting the success of the services sector on the investor call. >> was our best quarter ever for services with almost $7.2 billion in revenue. app store customers broke all-time records during the holiday quarter including $3 billion in purchases in december alone. making it the app store's single best month ever. >> with us now is apple watcher dan ives, senior vice president from syncronos technologies. great to have you with us. the apple iphone sales were the big beat in there. how much of that is a one quarter only effect and how much do you expect to continue

through next year? >> it's a step in the right direction. you look at iphone 7, 7 plus, what you're seeing here now is going into iphone 8. that's really apple's super bowl at this point. it's all the lead up to the ten-year cycle. and i think right now this is something that gives optimism to what we've seen in the smartphone market and shows the pent-up demand on iphone. >> international, we talked about how india was strong, china was disappointing. what happens there and how does cook and apple deal with more protectionist policies or rhetoric we're getting from the administration? >> great question. china was the golden opportunity and still is for apple. you see tough year over year comps. india is more nacent. right now it's can you see china growth with a renaissance there, especially going into iphone 8. that's key not only for apple

but in the industry, with google coming in and samsung. it comes down to china is the key fuel in the growth engine for apple. >> tim cook again talking up the prospect of his services sector of the business. is that just a misnomer? do you believe in that? can it lead to what many analysts say, if it a bigger portion of the pie -- >> what was it, 18% growth? >> yeah. when you look at services, soft wear soft softwear could lead to more sales, it's the differentiator on the ecosystem. higher margins, that's where it is supposed to double into 2020. we can see more focus on the services piece as you see more commoditization side. >> the stock has run up since the election, outperforming

other dow members. getting a nice pop on this release this morning. what do you tell investors to do? load up, buy more? can you own this for four years of a trump administration? what's the strategy? >> two things. it's all about anticipation in iphone 8, like we said super bowl for apple and cook. that is really the key. if you believe that pent-up demand, let's say 300 million potential users, you talk about trump repatriation, big focus here, 250 billion of cash out there. >> what happens that money? >> that's the focus. you talk about they have more cash in some countries, so now repatriation, when you think who benefits, they're front and center. does that cause more m&a across technology? it's not just apple, it's the big tech players across the board. >> if they bring that back, do they buy someone? >> i think that's where you started to get to buy backs, dividends, m&as. >> they're doing that anywhere. they're borrowing.

they haven't been short for cash. >> that's where the big question now out there is what happens if there's a repatriation. what they do with that. it becomes a high class problem. i think something that is front and center here. >> dan, great stuff. thank you very much for joining us. >> thanks for having me. there are several pieces of economic data out today. the january adp report out at 8:15 a.m. eastern. that's the read on private sector jobs. followed by january ism manufacturing, and december construction spending at 10:00. automakers also reporting january sales numbers, and the fed wraps up its two-day policy meeting. we'll get that announcement and statement at 2:00 p.m. eastern. this is one where there's no news conference which is why exists are saying don't expect a move in policy action. the key is do they hint at a march hike, a march 15th meeting which does have that whole thing or are they more cautious? >> no press conference, but people seem focused on the

statement that we will get. the written statement as to just that tone, are they taking note of possible fiscal expansion. >> we get a bunch of earnings. facebook reports fourth quarter results. >> you'll have a front row seat. >> anthem, tractor supply as well. still to come, a round up of the key stocks to watch. >> first as we head to break, the best reporting dow components during the month of january. you're watching "worldwide exchange" on cnbc. mywat pas akg g llou

welcome back to "worldwide exchange." some stocks to watch today. advanced micro devices reporting a narrower than expected loss for q4. the company seeing a jump in revenue because of demand for its graphic chips in gaming consoles and pc. match group's quarterly sales falling below expectations. tinder still more than doubled the number of paid members in 2016. the group's paid member count rose 23% on average. arconic is under pressure from elliott management nominating a slate of five director candidates to arconic's board, calling for new leadership to boost the stock price. after the bell yesterday, arconic posted weaker than expected results. the ceo spoke on mad money last

night. >> the board and management, we will engage with shareholders. we've done that. we listen to what they have to say. then we will come to a conclusion. what is best, and i hope that this will be a joint agreement, and how we go about it. the good thing here is that there's a principle agreement that there is a lot of value that can be continued to be created. i hope this will be possible to do jointly. >> arconic has 13 members on i board including ceo klaus kleinfeld. this is a developing story. he will join squawk on the street this morning at 9:30 a.m. eastern time. clearly there's going to be -- this is going to be contentious. arconic was spun out of alcoa. some supporters say the package of the two stocks is up 21%.

clearly elliott feel they have a case here. >> electrolux's q4 net profit came in line with expectations, despite a drop in organic sales. also saying the operating margin increased slightly to 5% as it is working towards rebuilding its north american market. still to come on "worldwide exchange," a round up of the global market action and a vote in the uk on the so-called brexit bill. we'll have the details of that. stay tuned.

it's time for sports now. houston's police chief says officers are ready to handle any protests that might occur before or during the super bowl. in response to president trump's immigration order. he said officials have not been taken by surprise because the potential for protests has always been a part of the security planning efforts. the nfl hired 4,000 private security and crowd management personnel. that game, of course, sunday evening. >> you know who is performing. >> i don't. >> lady gaga. she's been an outspoken critic of trump. maybe that will lead to more security. coming up, the top stories and a round up of global markets. plus the top trending highlights. we'll tell you about a super bowl ad going viral andma makin its debut before the game.

good morning. apple shares pop on better than expected iphone kales. washington watch. president trump nominating federal judge neil gorsuch to fill an open seat on the supreme court. it's february 1, 2017, you're watching "worldwide exchange" on cnbc.

good mornings. welcome back to "worldwide exchange" on cnbc. i'm sara eisen. >> i'm wilfred frost. good morning to you from me as well. futures pointing higher, taking the lead of markets around the rest of the world. europe is looking strong. dow called higher by 46 points. the s&p higher by 6. the nasdaq by 25. yesterday we saw about 0.6% of declines for the dow. the nasdaq and s&p basically flat. all three pested p posted posit returns. strong manufacturing pmis across the eurozone. the reading at 55.2 in january. the expectation was for lower than that. a strong way above 50. 55.2, that's gains across the board for european markets. france leading the pack up 1.2%.

asian trade for the most part is positive. hong kong's hope for the first time following the lunar new year. china remains closed. we have the shanghai comp closed. but japan up about a half percent. australia up a percent. india up 1.5%. >> as for the broader market picture. let's show you what's happening in the commodity world. oil prices are higher, just a bit here this morning. wti trading below $53 a barrel. it's above a percent. brent 55.64, also up by the same amount. nat gas getting a pop of 3%. ten-year treasury note yield, higher yields have been the story along with rising stocks. 2.47 so there's been some buying. are we resuming the trade? stronger stocks, selling bonds, buying the dollar. it's early. we will see.

as for the u.s. dollar. the dollar lost 2.6% of its value in january. that strong rally post-election came to a grinding halt. it's sitting near a 12-week low. it's a bit stronger this morning against the euro. 1. 1.0783. stronger against the yen, 113.35. especially because you have this correlation going where it's strong dollar, strong stocks which sounds counter intuitive. because every single multinational almost that reports earnings in the u.s. complains about the strong dollar chipping away at profits. if the dollar is moving higher amid stronger growth prospects for the u.s., stimulus measures, pro tax measures from trump and the congress, that helps the dollar and stocks. does that run into protectionist policies and the immigration order and some of his closest

advisers and he himself calling out the dollar for being too strong. >> the correlation comes down to hopes for that reflation trade. the reason we have seen a bit of profit taking over the last couple of weeks, nothing too much. we still have gains for january is because of hopes for the positive reflationary causes like tax changes, possibly deregulation. we have not seen that yet. we've seen some immigration issues, we have not seen the hard core tax changes. we've seen a bit of profit taking. that correlation still stands for the moment. >> it's hard to game out the political capital being used now on those executive orders, on the supreme court pick, the democrats increasing opposition to getting some confirmation picks like having a u.s. treasury secretary in place. does that stand in the way of an infrastructure package, which the democrats have wanted in the past, and corporate tax reform s their answer going to be no? those are questions that are

trying to be figured out on this fed day. >> we'll talk about the top corporate story of the day. apple shares rising after earnings topped wall street expectations. the company posting a larger than expected increase in iphone sales for the fourth quarter. here's tim cook on the conference call last night. >> was our best quarter ever for services, with almost 7.2 billion in revenue. app store customers broke all-time records during the holiday quarter including $3 billion in purchases in december alone. making it the app store's single best month ever. >> apple's current quarter revenue forecast is shy of analyst consensus. the company's cfo is blaming a stronger dollar. i got an e-mail from cyrus, who joined us yesterday. over t he was bearish yesterday, he

upgraded to a buy again. he liked the numbers because of the iphone numbers. >> they had a strong holiday quarter with the new iphone 7. they sold more iphone 7 pluses. asp rose to a record $695. that's a high price. >> huge. >> the services growth, 18%. still a growth engine. can they move the needle to get a bigger percentage of revenues? people are worried about china being offset by strong growth in india. it's still a smaller part of the pie. you mentioned that high asp in american markets, that's the problem in china. they saturate d themselves to te higher end consumers, but the chinese consumer likes the lower-end phones, looking like the iphones.

so now the i phone iphone has t into the mid level users. >> apple broke its streak of three declines, now back to growth. we look to the super bowl which is the september release of the iphone 8, 10th anniversary phone. >> shares up about 3% this morning. the action comes after the close total. facebook reports its fourth quarter results. landon dowdy has three things to watch in that. >> good morning. the street is looking for facebook to post earnings of $1.30 a share on revenue of $8.5 billion. beyond those numbers, here are the three things to watch. first is user growth. facebook analysts estimate a 17% increase in monthly active users, but with the rise of snapchat can facebook keep up with this growth as many younger users gravitate away from

facebook. >> second, ad revenue. mobile has propelled the social network, but it's not maintainable without clogging up news feeds with too many ads. and the third thing to watch, the company has said it is working to combat concerns about fake news. so you wanted to will be for updates there, and a commentary around president trump and his immigration issues. back over to you. >> thank you very much for that. among the other top stories, president trump has nominated federal judge neil gorsuch to fill the open set on the u.s. supreme court. the 49-year-old currently serves on the tenth circuit. he was nominated for that post by president george w. bush in 2006 and confirmed by the senate unanimously. president trump introducing his pick at the white house last night.

>> the qualifications of judge gorsuch are beyond dispute. he's the man of our country and a man our country needs badly to ensure the rule of law and the rule of justice. >> i pledge that if i am confirmed, i will do all my powers permit to be a faithful servant of the constitutional laws of this great country. >> democrats are sho saying the will probably go the filibuster route. british lawmakes. >> reporter: set to vote on the brexit bill that would grant theresa may to begin the process of exiting the european union. this was after the ruling that she does need parliament's approval to start that clock,

otherwise known as article 50. >> but there's much less pressure on them. it's widely expected this bill will pass, because labour, the opposition party, is also supporting it. >> when does that come up? this morning? >> today, 12:00 -- later than 12:00, but today. the debate heated. time for top treni intrendi stories. >> this is an impressive add. >> a super bowl ad making headlines already. the commercial called born the hard way follows the founders of anheuser bush in the 1800s. budweiser said the timing of the commercial is a coincidence. it would be hard to put such a major production forward in three days. >> some of the issues of immigration have been at

forefront for the last six months. i watched this this morning. my issue with this, i found it powerful. i know abi owns budweiser, it comes from initially an immigrant. does everyone know that when they consume budweiser? will people be confused by the background behind it. >> i don't know. a beer commercial is a beer commercial. americans like beer. >> i watched it for the first time this morning at 4:05 a.m. it made me want a beer. >> a little early. i didn't have one. i promise. facebook reportedly building an app for television. the social media platform is asking publishers to create tv-like shows , it's in an effot to make video a center of the platform. not groundbreaking, but pushing

more into the netflix type model to get better quality type tv. we have to hear more about this. this is where everyone is moving. video. facebook looking for more places to put ads. we'll get more on that from fourth quarter results later today. >> nice link together there. still to come, the must read stories. as we head to break, a look at best performing sectors in the s&p 500 last month. we'll be back. idouuay e c.did clou dveesit.tes ii

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welcome back. now to our must-read stories. my pick is from the uk times, this is from the british historian. ten tips to a successful premiership. i wanted to draw the attention to the parallels of being a successful president, and president trump is conforming to quite a few of the top tips, such as number six, on media set the regime at the start and stick to it break them into your regime and don't dance to their tune. he's doing that. and pick number three, he says macro then micro. get your two or three big themes out there, stick to them relentlessly. he's kind of conforming to quite a few of these tips, the president. there's also a list of ten things to avoid. and the president also scores

fairly well on those themes, including fighting with your colleagues, becoming angered, or bad tempered, and reacting rather than acting in your own right. he's quite a reactive person. it's a good read. aimed at the prime minister from his historical perspective, but parallels to be drawn. >> a textbook for leadership. >> how popular is she? >> doing well, overall. ratings are still high, but a lot of people suggest a large part of that is due to the lack of affected opposition, as opposed to outright success. >> my pick is in the "wall street journal," about the supreme court pick. what kind of judge is neil gorsuch, it's in the "wall street journal." a pair of constitutional lawyers did the homework for us. judge gorsuch shows a concern for the people who's disputes are before the court. each opinion typically begins with the name of the person seeking relief and why. a recent example, after -- this

was the writing of judge gorsuch. after a ba after a bale of hay hit and injured miriam white, while she was operating her tractor she sued the manufacturer, deere & company. ms. white's appeal was denied, but the brief, reflects a serious engagement with her arguments. the democrats are still mad about not getting president obama's pick confirmed. >> likely a filibuster thrown in there to make it tougher. >> approaching the tom of the hour. joe kernen has a look at what's coming up. good morning. >> good morning. you guys probably don't remember what old math was. when i was a kid, they introduced a thing called new math. you couldn't do addition and b

subtracti subtraction, everything was weird, subsets. we had these con centric circles, if they come together, there was stuff in the middle. we strive every day to not be like everybody else in terms of covering all politics, because we're a business network, but there's no way to ignore the political side of thing. so we look for that intersection of politics and business and how it affects the markets, peoples money. we're doing that again today. every day we're striving for that. for example, we have the ceo of eli lilly. interesting comments yesterday. we got this ceo president, this pro business president that throws out conventional in terms of trade, price, whether a pharmaceutical company should just use free market forces to price drugs, and do they? what does the patent situation mean for whether it is a free

market or whether you're not negotiating with the government for prices. whether you're extending patent protection. there's all these things that are now in play. they affect politics. we also have pure political guests on. the house weighs and means chairman, kevin brady will be on, and the majority leader will be on. we'll look at it through the business lens. that's what we need to do. >> sort of easy now with ceos making daily appearance to the white house. >> yeah. yeah. we just need to remember our -- remember our mission. remember what we are here to do. i was just explaining how hard it was. he said it is really easy now. but we still need to -- >> i like the reference to a ven diagram. >> do you remember that? >> i'm not sure it falls under math in the uk, more of a cross-subject tool, a ven diagram. >> i remember when new math was

introduced in sixth grade. really? that's when i realized how crazy some teaching methods are. now look at any college campus if you want to see how crazy the world has gotten with these professors. >> there you go. look forward to "squawk box" in ten mines time. >> when we come back, deutsche bank chief joe lavorgna joins us. stay tuned, you're watching "worldwide exchange."

good morning. if you're just joining us, the fed wraps up a two-day policy meeting today. this afternoon we'll get an announcement at 2:00 p.m. eastern time. ahead of that, futures are in positive territory. the dow looks set to rebound from a string of losses. dow futures up 39. s&p up six. nasdaq up 25. joining us is joe lavorgna have

deutsche bank and a cnbc contributor. what tone do you think the federal reserve will strike in its statement today, given everything we've seen, the rising stock market, but yet to materialize into better economic data. >> the tone will be better reflecting what you said, that the softer economic data, the sentiment surveys have improved. but the harder data, the retail sales, jobs, et cetera, those things have not yet moved. it will be -- as the cliche goes, cautious optimism. >> what do you expect in terms of whether the fed can get investors to expect what they have been suggesting so far? by that, the three hikes they forecast, where investors are pricing in two. is it important to make sure investors are correctly assuming how many they're getting? >> no two or three, it's one

move, i think it's two hikes. my guess is that the end of the year janet yellen, before she leaves, will want to start the process of unwinding the balance sheet. i would think that's a tightening move. as long as the market has a couple hikes priced, the fed will not jawbone it to get one more. >> where do you stand on this question that investors have been asking in the last few days, especially after last weekend, whether the immigration executive order distracts congress and this president from some of the more pro growth stimulus agenda that investors were so hopeful to see. do you think that's driving the sell off? >> perhaps. i don't know. we had a number of weeks where the market had not even a 1% correction. we're still close to the s&p record high. there always is a concern, any time a new administration comes in that wants to do a lot of not focusing on the economy.

there's other issues of pertinence. my guess is when we step back, some of the stuff will be forgot be. the key focus of the administration is trying to get the economy moving. i think the president will lay out what his goals are at the state of the union. and i think the economy will do very well this year. i went from one of the most tess mi pessimi pessimistic on the street to optimistic. >> a month is a long time. what are your forecasts for europe? i suppose january has been quite different from the last couple years, there's been a lot of differentiation. >> our firm is generally bullish on the dollar. that would fit with my above the consensus forecast. the general pattern of higher rates. some we have seen the last few rates have been positioning.

my guess is when we start to get feel for what tax policy looks like, some things that we'll likely get done around the spring, you'll see the currency broad broadly weighted and moving higher. >> i don't know if it fits with the new administration trar's policies, could we about to see the white house change its strong dollar policy? something that's been in place for decades? is that at risk? what does that exactly mean? >> nominee mnuchin mentioned a dependable dollar to use his words. there's already been a subtle shift. i think that means they want the dollar to be strong but not so strong as to hurt u.s. competitiveness. what the administration tries to do with corporate tax rates will also impact the currency. some of it is to be determined.

>> joe, thank you very much. we'll have to leave it there. >> thank you. >> that does it for us on "worldwide exchange." "squawk box" is next. e,n of sff ttt

it's decision day at the fed. investors await the key first policy statement since president trump's inauguration. apple snapping the slump that no one saw coming. the iphonemaker reversing three straight quarters of falling revenue. the stock trading higher. plus we've got our supreme court nominee, president trump selects neil gorsuch. we'll tell you why it could have big implications for the business world. that's straight ahead on wednesday, february 1, 2017. "squawk box" begins right now. ♪

>> live from new york where business never sleeps, this is "squawk box." >> good morning, everybody. welcome to "squawk box" on cnbc. live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. let's look at how january finished for the markets. the nasdaq leading the way. it was up by 4.3%, just for the month. the dow was up by a half percent. the s&p was up by 1.8% this comes after a mixed day yesterday. you saw that the dow was down by just over 100 points. that was a decline of a half percent. s&p was down by 2 points. the nasdaq closed higher. if you look this morning, you will see green arrows across the board. the nikkei in japan rose by a half percent. hong kong resuming