good morning. futures pointing to a slightly positive opening on wall street today. washington watch. an appeals court gears up for a battle over president trump's immigration order. as more than 120 companies join the fight. and earnings central. bp's bottom line hilts a ten-year low. the details plus all of the other stocks to watch coming up. it's tuesday, february 7, 2017. "worldwide exchange" begins when? >> right now. ♪

good morning. welcome to "worldwide exchange" on cnbc. i'm sara eisen. >> i'm wilfred frost. good morning to you from me. welcome back. >> thank you. it's our half birthday today, february 7th. >> of the year, my goodness. was that basically like where are my flowers? >> i heard february 7th. >> there we go. because we share our birthday august 7th. checking in on global markets. we did see declines in all three indices yesterday. i saw that headline yesterday on the ft, the declines were very small. 0.1% and 0.2%. this morning we are expected to downs back. the dow by 33 points. s&p by 2. the nasdaq by 3 points. essentially friday a very strong day on hopes of deregulation, stronger than expected jobs print. risk on on friday. risk off yesterday. the risk off sentiment did manage in lower stocks but not

much. mainly manifested itself in buying of the bond market with yields, particularly in the afternoon moving quite significantly lower. close to 2.5 at the close on friday. we fell briefly below 2.4% yesterday where we are just above right now. 2.415%. >> two-week low for the ten-year yield. in the uk, retail sales fell in january. the british retail consortium reporting total sales rose by 0.1%. that was significantly weaker than december's read. halifax reporting that uk home prices declined at the start of the year posting their first slide since august. >> retail sales could have a big jump in middle of march? >> middle -- when i visit the uk? yes. keep tabs on that. >> sudden jump. >> more data in germany, industrial production unexpectedly dropped 3% in december. let's show you how it's impacting the european trade.

things are positive. they're coming back from a few sessions of decline. german dax up 0.4%. we saw the move lower in the euro yesterday. ftse 100 nice and firm. it's up 0.58%. >> over the weekend we did see marine le pen, the far right french candidate announce plans that if she were elected she would pursue a referendum on eurozone as opposed to the european union. the expectation in the french election is that she will make it to the second round, but then lose the second round runoff convincingly despite various issues with other candidates. so no real change in the likelihood of whether she will win. >> first voting is in april. >> first voting is in april, the runoff is in may. the first vote in march 15th,

the dutch election. they've all got a good chance. >> that whole buy and don't worry thing went out the window with brexit and trump. australia's central bank held rates steady at 1.5% for the seventh straight month. asian trade in general pretty flat. japan down 0.3%. otherwise not much movement happening there. overnight we did see the chinese reserves, fx reserves drop below 3 trillion. just concerns on this very much lower than this time last year. >> yeah. >> that's the key point to make. >> it's sort of a round magic number. they only fell 12 billion or so. so maybe an indication that they're intervening less for their currency. but we watch it we always watch the tea leaves around china,

especially as that stock market comes back from its lunar new year holiday. and there's some talk about there's not as much support from the central bank. >> on friday they hiked rates, a small amount. that was a big surprise. in the short-term, a more important trend to watch, is this a move to tightening liquidity conditions. or is it a little one-off flicker. >> will that have effects across global markets. >> oil prices were soft yesterday. in fact, energy was a disappointing sector for the s&p because of it. energy was down -- oil prices down 1.5%. down again a third of a percent today. 52.8. >> as for the u.s. dollar, marching higher after a series of declines. it's stronger against the euro, 106.57. right now the euro has been under pressure as a result of some of these political headlines that move is picking up steam here. it's down almost a percent. the dollar is stronger also against the japanese yen. that's a reversal from what we

saw yesterday. where we saw the yen strengthen by 0.8%. it's going the other way that could be good for the risk sentiment overall today. the dollar is a bit stronger against the pound as well. a nearly 1% move there, too. as for gold on the back of that stronger dollar, gold backs off from recent highs it has been going strong over the past week or so heightened political risk, weaker dollar. the dollar stronger today. will that take stocks with it snfrn? >> worth pausing on that colldo move, more important is the risk-off sentiment that drove bond yields lower not just in the u.s. but in europe. just a focus on system of the political headlines. the dollar is the beneficiary of that. >> stocks remain -- stocks in the u.s. remarkably resilient to some of these moves in bonds and in the dollar, which have been more pronounced to the nervous

side. >> right. i think, you know, we talk about the dow. three out of the last four weeks the dow has been down but the moves have not been huge. it's been resilience light so the down side. >> down 19 points yesterday. >> yes. holding on despite negative headlines as opposed to declining in a meaningful fashion. we mentioned philadelphia fed president patrick harker, he said march should be considered for the next rate hike. he's an fomc voting member. he explained he's still supportive of three increases this year depending on how the economy and fiscal policies evolve. he thinks next month's meeting should be considered as time for another 25 basis point increase. the fed policymaker suggests he does not want to get behind the curve on inflation. that is one of the factors why we're seeing the dollar stronger. >> new member, voting member, hawkish member. >> hawkish harker.

>> we heard from japan's minutes minister overnight saying the country will stick to the g-7 and g20 agreement against competitive currency valuation. aso wouldn't address the gains directly. he did say he hopes prime minister shinzo abe and president trump have a productive meeting over the weekend. auto executives have complained about the weak yen giving japanese automakers a boost. but if you zoom out and look at the yen over the last few decades, it's significantly stronger, and japan will stick to the the line that they're playing by the rules. they're not intervening in the currency market. yes, it's printing money, but it has a strong case to make that

it's trying to fight deflation. >> and we got push back from mario draghi saying it's not breaking any rules it makes complete sense, yes, they are printing money, but no different to what the u.s. had for most of the last decade. it's just rich to claim now that we're on the other side of that and are hiking rates, it's right to criticize those with loose policy. that's the only argument here, but not a strong one. >> japan is the second biggest trade deficit country against the u.s. other than china. we buy more from japan than we sell. it's something president trump has targeted. calling out mexico for $60 billion trade deficits. a developing story out of iran.

the i ayatollah responding to president trump's warning to stop missile tests. he said trump wants iran to be afraid of him but the country won't be. the ayatollah said iranians will show their response to trump on friday's anniversary of the 1979 revolution. a federal appeals court will hear arguments today at 6:00 p.m. eastern time on whether to restore president trump's controversial immigration order a lower court judge put the ban on hold temporarily ahead of the court battle between federal and state lawyers, a new filing showing administration officials offered a possible compromise that would allow some affected travelers into the country while keeping others out. in washington, senate democrats conducting a 24-hour speak-a-thon in a last push to derail the confirmation of betsy devos. lawmakers plan to speak up to the vote on the floor today at noon eastern. the senate is poised to confirm devos by the narrowest margin

with vice president mike pence expected to break a 50/50 tie after two republicans announced last week they would vote against her. devos has sparked concerns by educators she won't be a strong supporter for public schools. just on this, you know, it's maybe not direct market implications here sh, on this talk-a-thon and the fact there's a lot of disagreement now on capitol hill, one thing it does point to which investors are worried about, if democrats are going to be the party of no on everything, not just the confirmation hearings which they don't have power on at there point, but on big issues like tax reform, infrastructure spending, will that delay the political pro-growth bullish factors for the markets? we'll have to wait and see. that's a concern. it's something that goldman sachs raised this weekend and something investors are banking on. >> how much of his capitol hill currency is president trump using up in things that don't move the market. to some earnings news.

shares of bp slipping after the firm reported earnings that hit a ten-year low and missed expectations. the oil giant has been weighed down by higher oil prices and says an opec cut could affect 2017 production. weighed down by lower oil prices, that is. on today's agenda three pieces of economic data and plenty of earnings report. december trade deficit numbers are out at 8:30 a.m. eastern. those are followed by the monthly jobs openings and labor turnover survey or jolts at 10:00 a.m., and consumer credit at 3:00. general motors reports before the bell along with adm and michael kors. still to come on "worldwide exchange," the top stocks to watch including another ceo change at teva. first, as we head to break, the major currencies right now.

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good morning. welcome back to "worldwide exchange." a check in on the market action. the big mover this morning is the u.s. dollar. as you can see, marked moves to the upside for the dollar. the euro lower by 0.8%, as is the pound. the yen, as you can see, weaker

by a half percent. big moves in the dollar. it comes amid a little bit of risk off sentiment yesterday. it was more marked that risk off sentiment in the bond markets than in equity markets. if we look at the futures market, all three indices were in the red yesterday. declines of 0.1, 0.2%. there was risk off sentiment that saw the buying of bond markets and a sharp move lower in yields. as you can see, we are expected to bounce back slightly when markets open here stateside. futures higher by 0.2%. teva pharmaceutical's ceo is stepping down after three years on the job. the company is not giving a reason for the departure. the drugmaker says the chairman will serve as interim ceo. some other stocks to watch, bnp paribas posting fourth quarter profit that missed estimates. results hurt by low rates and restructuring costs. the lender is laying out a multi-year plan to lower coasts

and boost investment in technology. statoil reporting results below forecasts. q4 results were impacted by a $2.3 billion net impairment charge. and gap raising its fourth quarter earnings guidance. the company saw sales growth for the first time in years. potentially a turnaround in gap. investors rewarded the shares lately. we'll see if they get a big rebound as a result. more stocks to watch. 21st century fox posting second quarter revenue that missed estimates. earnings did beat the street. it's television and cable series benefited from the world series and the presidential company. and an activist hedge fund manager has nominated four to sit on the board of buffalo wild

wings. the hedge fund has been lobbying to have the buffalo wild wings franchise more restaurants. shares of fomc falling after the company fell short of estimates. shares are off by 4% this morning. ebay says it found material weakness in its internal controls over accounting for taxes on certain transactions made in december. the company said it won't have to reaffirm results. they will review documentation and will remedy the issue by the end of this year. shares just down a little bit. in auto news, fiat chrysler says its vehicles are fully compliant with emissions. the company remains confident it will be clarified in due course.

it said fiat chrysler provided information to french officials which show results of testses do not correspond to those done by the italy transported. the ftc settled with gm and two dealers last year after the marketing of preowned cars even though they may have had issued that still had to be repaired. the lawsuit filed by the center for auto safety and other groups claims the ftc's decree still allows dealers to sell cars that could have potentially dangerous defects. when we come back, boston throwing a big parade for the patriots today, but before we go, here's the weather forecast from jen carfagno. >> good morning. we have a spring-like day ahead. temperatures hitting record levels. 80s in texas.

we have severe weather also, that's a big story today as we watch storms ongoing to started the morning, moving from arkansas to tennessee. there's a slight tornado risk for mississippi and alabama. the threat for damaging winds pushing into atlanta by evening. thunderstorms stretching up into indiana and ohio. chicago, more likely you will see thunderstorms than you will see snow. that's how a crazy spring-like day today is. there will be knows and ice to the north of new york. boston for the parade, starteding with snstarte startig with some snow, changing over to a wintry mix. ending with some rain. that's your coast to coast forecast. "worldwide exchange" continues after this. i laugh, i sneeze...

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and in corning, where the future is materializing. let us help grow your company's tomorrow - today at esd.ny.gov welcome back to "worldwide exchange." good morning. let's get you up to speed on the market action. stocks are set to open higher. dow futures up 31 1/2 points. s&p futures up 2 1/2. nasdaq up more than 3 after a minor selloff on wall street yesterday. showing you what's happening with the price of oil, declining yesterday. also giving back some today as well. w wti crude down more than a quarter of 1%. brent crude down a quarter. 55.59. the stronger dollar making a move here in the early action impacting commodities like oil

and gold. first lady melania trump refiled a libel lawsuit. she originally filed the suit in maryland. but a judge dismissed the case. the lawsuit is now pending in new york against daily mail. she has sued the company and a blogger for reporting rumor she's had worked as a high-end escort. the daily mail has issued a retraction since then. moving on to sports. the new england patriots will celebrate their incredible super bowl win over the falcons with their fans today. the team's victory parade will be in posten later this morning at 11:00 eastern. the weather forecast is calling for light snow in the area. boston knows how to throw a party for its sports teams. this is the city's tenth championship parade in the last 17 years. the patriots thrilling co comeback overtime win in the super bowl was watched by 111

million viewers on fox. that's down a half percent from last year's game between the broncos and panthers. but fox says the total audience was nearly 114 million viewers if you include the 1.72 million who streamed the game online. and the $365,000 who watched the spanish language broadcast. even with the decline, super bowl li is the fourth most watched tv event of all time. there's a lot here being made about the ratings which were not as high as last year. one reason had to be that people probably went to sleep when it looked like the falcons were going to take it. it became the most exciting game ever very late. >> terms of the ratings, the whole season across all -- baseball as well, all the numbers were down. for all that we say live sporting events are the key thing for advertisers, it's worrying that the numbers are down for the season. >> the super bowl is so huge.

>> it's an odd trend that that's happened. coming up, the top stories and a round up of global markets. plus google and h & m are working on an app that will track your every move and design you a custom dress? all the details. sort of a fantasy of mine. >> sounds like just the thing for me -- no, for you. >> you're watching "worldwide exchange." it's an important question you ask, but one i think with a simple answer. we have this need to peek over our neighbor's fence.

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good morning. global market alert. china's january fx reserves fall more than expected to a six-year low. we'll tell you why this matters. and disney ready to roll out quarterly results. three things to watch coming up. and is a feud brewing xeen c between kanye and president trump? it's tuesday, february 7, 2017. you're watching "worldwide exchange" on cnbc. ♪ good morning. welcome back to "worldwide exchange." i'm sara eisen. >> i'm wilfred frost. >> let's check in on global markets. stocks sold off yesterday, just barely. the dow closed down less than 20 points. things are looking up. dow futures up 26 1/2. we lost a few points in the last half hour. s&p 500 futures up 2. nasdaq futures up 2. as for the early action in

europe it does appear to be positive after a few down sessions. the german dax is up 0 pn.3%. the outperformer in the region, ftse mib in italy just turned positive after being in the red. as for the overnight action in asia, they followed wall street lower. the nikkei closing down 0.3%. it's going the other way this morning. hong kong and shanghai also closing lower. got that $3 trillion below $3 trillion fx reserves number in china. not a lot of hand wringing about that number. it is a round number. it's a trend worth watching. it's an indication of how much china has been stepping in to defend their currency or stop it from falling lately. it's actually less than what we've seen in the past few quarters. >> over the last year, it's

elevated but something we need to keep an eye on. oil markets were soft yesterday. down about 1.5%. oil down today, 52.9 the price on wti. ten-year treasury note, we had risk-off sentiment that manifested itself more in the bonds market than equity markets. a decent move in yields south yesterday. bond buying as risk aversion did pick up a bit. the dollar today is stronger that's partly because of risk aversion, but more pronounced reasons because patrick harker of the philly fed suggested march was on the table for a rite hike. the dollar bouncing about 0.8% against the euro and the pound. >> you have sharply lower german

industrial production weighing on the euro and political risk rattling the eurozone. >> political risk sparking up a bit yesterday. we saw european markets off more pronounced fashion yesterday than u.s. equities. gold prices, decent run gold has been on. flat today. 1,232. in terms of the u.s. markets, one factor on friday is the b k banks toobank s took off, understandable that that rally didn't continue over the weekend, as the weekend came through, people realized the wording of the executive order itself, which came out late friday, still needs work to be done. we know where the administration stands on it, but that's not done and dusted. we have a long way to go. >> you're talking about the executive action, opening a window of review for dodd-frank and to make changes. people saying it was largely

symbolic. >> largely symbolic. the most bullish factor on friday which is why that move on friday was justified is who is giving advice to the president on this? gary cohn and jamie dimon, not just jamie dimon, but he's taking the experts in, taking their opinion, that's encouraging for bank share prices, who for the last five years think a lot of stuff has been unnecessary and a burden. >> on today's ajgendagenda, dec trade deficit numbers are out at 8:30 a.m. eastern. those will be followed by the monthly job openings and job later turnover survey or the jolts report. and consumer credit at 3:00. general motors reports before the bell along with adm and michael kors. after the bell yum china.

>> let's talk about today's packed agenda, we are joined on set by james lu from clearnomics. why are stocks so resilient here in the face of sharper bond move, sharper dollar moves and a lot of concern about political risk? >> in the most election rally, a lot of it is trump and t. a lot of oil prices had risen, inflation was rising. you have earnings rebounding also. i think what you're seeing more eventually is the trump rally has stumbled a bit and that's because on a daily basis investors are having trouble grasping the two parts of the equation. on one ha you have geopolitical risk, a year ago that would have ban concern for investors in this

environment we think markets are too complacent. we have the vix around 11. there's a lot more geopolitical risk the markets are pricing in. >> in terms of risks you have a tighter stance on monetary policy coming through this year and with it a stronger dollar. something that we were so fearful of for most of the last decade. are markets too relaxed about that as a risk or is that something that rightfully they're taking in stride? >> we think markets are focussed too much on politics at the moment. politics can cause short-term volatility and things like trade policy and tax reform certainly do matter for the economy of the long-term. what matters now are the two key underlying trends. one the market is not cheap. valuation measures are stretched. as you point out, if you think about monetary policy and other underlying trends, the jobs report, if it showed us anything last week, we're late in the cycle in terms of economic growth. so the irony is that if we get any sort of fiscal stimulus in

the economy, it could overheat us and push us towards more inflationary pressure. >> what about earnings? are you getting a clear message there in terms of where you wanted to be putting your money and what the outlook is? >> the earnings trend has been interesting. we had this earnings depression in 2015 and 2016 because of where oil prices and also the u.s. dollar were. so we see over the next two years is that the market expects double digit earnings growth each of the next two years in 2017 and 2018. we think that's highly unlikely. the average over the cycle is actually somewhere around 6%. so we think that the number that the market has in mind, even if oil prices rise and interest rates continued to strengthen, we think that will have to come down as well. so the areas of the market we would be looking at are where you do have believable earnings growth. consumer discretionary for example, with the strengthening of the consumer balance sheet. but where valuations are still not stretched. so stay away from area like

utilities, maybe even places like energy that have rebounded significantly. we focus more on favorable sectors like consumer discretionary and technology at this point. >> james liu, thank you very much. we mentioned disney earlier. the media giant will report results after the bell today. landon dowdy has three things to watch. >> good morning. the street expects disney to post earnings of $1.50 as share on revenue of $15 billions. here's the three things you want to watch. first, espn subscriber numbers. disney's cash cow continues to be threaten eed by cord cutters. ceo bob iger reassured investors last quarter that the company will deal with espn's near-growth issues and that it will succeed over the long-term. so investors will want to see progress there. second, an iger extension. with 16 months until his planned retirement and no successor in sight, investors are hoping he'll announce a contract

extension to enact a long-term plan for espn and adapting for the digital era. yesterday the "wall street journal" reported that iger may delay his departure again. the third thing to watch, films and parks. the mouse house is set to have a promising slate of movies in 2018 that includes four marvel and two "star wars" films. that could offset sluggish espn growth and listen for updates on the theme parks as the opening of avatar land should boost east coast domestic attend dance. shares of disney up 16% in the past three months. thank you very much for that. avatar land. you going to that? >> sure. i always go for movie popcorn. >> it's avatar land. a theme park. >> i thought you were saying avatar. >> two more "star wars" movies this year? milking that. a federal appeals court will hear arguments today at 6:00 p.m. eastern time on whether to restore president trump's controversial immigration order.

a lower court judge put the ban on hold ahead of the battle. a new filing shows administration officials offered a possible compromise that would allow some affected passengers into the country. in washington, senate democrats are still conducting their 24-hour speak-a-thon in a last-ditch effort to not allow for betsy devos. the senate is poised to confirm devos by the narrowest margin with vice president mike pence expected to break a 50/50 tie after two republicans announced last week they would vote against her. devos has sparked concerns by educators she won't be a strong supporter for public schools. shares of bp slipping after reports of missing expectations.

the oil giant says an opec cut could affect 2017 production. shares down about 2.5%. for great insight on that from a clear rival, the shell ceo will be on "closing bell" later today. this is really a top story. kanye west deleting all of his traces for support of president trump. earlier this year west told fans if i were to have voted i would have voted for trump. he later met with trump in trump tower. he was then president-elect trump. in a deleted tweet he said his meeting with trump was to discuss multicultural things and to talk about bullying. people are speculating why he deleted that tweet. >> it comes back to that issue like between musk and kaliber, where if you don't support him,

don't you still want to engage and have the debate? he hasn't come out to say why he deleted the tweets. >> who knows. c with kanye, it's always a media frenzy. the best places to live in the u.s. have been unveiled. the country's largest 100 metropolitan areas, and austin, texas taking the number one spot with denver, colorado coming in second, followed by san jose, california and washington, d.c. washington, d.c. is surely expensive, though. >> it is expensive, but some more affordable suburbs. >> i've been to only two of those. >> hit all the ones on the list. >> san jose and denver still to come. google teaming up with ivy revel. they are working on an android

app, and the app will create a personalized dress that you can buy. the dress pricing will begin at $99. >> which speaks to how scary it is that people are collecteding. >> data collection, but also this idea of personalization. they want to design it themselves. >> do they do shorts and t-shirts for men? >> maybe that's the next step. reading about avatar land, a bio luminescent forest. it sounds very cool. a sacred river hiding in a b bioluminescent forest. >> i thought the first one was awesome. >> did not know that about you. still to come, the must reads. first, a look at european equities which declined quite markedly yesterday. the dax down 1.2%. france down 1.1%. bouncing back today.

up a half percent in london. the other two just slightly positive. back in a couple minutes. always obvious. 't sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.

we're drowning in information. where, in all of this, is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you don't. you partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. morgan stanley. welcome back to "worldwide exchange." time for some must-read stories catching our attention. my pick in the "new york times," ice lating che i isolating chin work. starting a trade war with china or gearing up for military conflict in the south china sea

will do the same. he points to other instances in history. it will push china into a defensive crouch, validate its paranoia and promid mr. xi with the opportunity to profit from mr. president trump's miss steps to appear statesman like when mr. trump appears bellicose, to bul bully taiwan and to make china's repressive system of government seem more attractive. the it's lasolation of china do help versus bringing china in to areas of progress. good detailed read. >> my pick is from the project syndicate website, the global economy's surprising resilience. since my days as chief economist at goldman sachs, i have kept an eye on six indicators from

around the world which provide a snapshot for what the global economy looks like for the nix months. right now all six indicators show more promise, and only one of them has fallen slightly from a recent high. it's a bullish overall outlook. >> this is vintage jim o'neill. >> but also he goes into detail the six indicateders. >> any surprising ones? >> korean trade he looks at as an open international economy. that picked up. the key things for china, which are not necessarily the headlines out of china that we look at. for that itself, it's interesting. but also the conclusion being that he's positive about short-term cyclical uptick, not structure yet, but short-term, start of 2017 growth is what he's looking at. >> if you look at some of the

data around the world, the broader picture is one of improvement. not just in the united states. >> exactly. >> which we are seeing also some solid growth. approaching the top of the hour. the team is getting ready for "squawk box." brian sullivan joins us this morning from the nasdaq with a look at what's coming up. good morning. >> hi, sara. a big show coming up. in fact, larry summers will join us. he has a piece out this morning arguing that redoing trade deals will not help the middle class at all despite what president trump says. we will talk to him, debate him on these points. the cfo of general motors will join us. what does gm think of the trump administration? are they going to move manufacturing here? and all those pot poholes on th road that you are hitting now, will they get filled or will infrastructure plans get tied up in more infighting?

plus all your morning markets a look at disney as well. a lot more to do on "squawk box" coming up on a wednesday -- tuesday. i jumped ahead. i'm so excited for the weekend already, that i jumped a day. >> we always are. i'm with you on that. i wish it were friday, but it's not. >> especially that focus on potholes. coming up after the break, jack caffrey has his take on the trading day ahead.

welcome back to "worldwide exchange." futures this hour pointing higher. the dow by 33 points after a risk off day that saw buying of bonds yesterday. selling of equities, albeit slightly. down 0.2% for those three indices yesterday. joining us now is jack caffrey. i supposed we dodged the top market mover by showing the

futures board, the big mover today is the dollar. quite markedly higher. what is driving that, political fears or fed rate hike fears? >> certainly some political issues that always manage to creep on to the front pages. the fact you have the philly fed head yesterday talking about the prospect of a live meeting within march, and the economic data has been very good in the united states. in terms of relative to expectations and i think points to the fact that there might be some firlness in terms of the possibility of rates rising at some point. >> how much has been baked into the stock market in terms of better economic growth, higher interest rates and potential policy moves like corporate tax reform? >> i think valuations are in that tug of war. better economic growth feeds earnings, a bit more confidence

in the u.s. central bank, tax reform is a nice thing, but i'm not sure how much necessarily you want to put a multiple on that stair-step in terms of earnings. i'd like to what happens and what do we see from the consumer. so we look to the jolts data later today. is the consumer more confident. is consumer credit becoming more available, despite the fact that outs to and housing are an important driver. >> are there some tailwinds coming into play around the world that we could be seceleb e celebrating stateside? >> if you look at global economic surprises, they wind up being positive. it's been years since you look around the world and say the world is growing. there's always been a major trouble spot economically, that's not the issue now. that's important for the s&p 500 generating about 40% of operating profits international limit we might not win from a

translation perspective, but a growing economy globally is a positive thing. >> how should u.s. investors -- we got a wake up call yesterday when we saw french bond yields rising, the euro falling. how should the u.s. look at things, specifically with france, a far right candidate with a shot and the risk of the euro unraveling. >> we look at some of the politics, what you've seen has been unexpected election outcomes, because it markets responded in an way that was favorable for the underlying economy. the argument looking at brexit. the brexit vote happens, the bank of england says this will be disturbing to our outlook, we'll maintain an accommodative policy and the pound falls which creates stimulus in the form of a cheaper exchange rate.

in other words, done worry about the politics because central banker also come in and save everything? >> i don't know about the central bankers save everything, but the foreign exchange markets are helpful and policies take much longer to implement than we tend to hear on campaign trails. there certainly can be changes coming in europe, whether it's france or germany, but the underpinning of the economies themselves are fairly positive now relative to where they have been for the last several years. >> jack, for your private clients, long-term investors, this little pullback we've had, is that an opportunity? are you heavily overweight equities or are you still positioned underweight? >> i'm trying to be as close to what i think-dish would encourage clients to be close to normal risk allocations. i certainly look at measures of implied volatility and high

valuations, and i think it's possible to sit there and say markets are complacent. but i don't know valuations say that rallies end. valuations tend to go to extremes and go through fair value and becoming not just somewhat expensive but fairly expensive. what trips us up in the markets is when markets fall. higher evaluations are when returns are more muted. this year we were expecting a high single digit return. and we're up 2.5% already. markets have come a bit, certainly volatility says we should see a stumble at some point but i would look at that point to upgrade the quality of what i own. >> jack, thank you. >> thank you. >> less than a minute what are you watching? >> the dollar is a big mover today. a percent move higher against the pound. i think it's down to the harker comments is march on the table.

>> absolutely. also watch earnings today. disney after the bell, mondelez, general motors before the bell. >> follows disappointing numbers from bp already. that's it for "worldwide exchange." with the help of the lowest taxes in decades, a talented workforce, and world-class innovations. like in plattsburgh, where the most advanced transportation is already en route. and in corning, where the future is materializing. let us help grow your company's tomorrow - today at esd.ny.gov

good morning. we have an earnings alert for you. bt shares under pressure. the justice department getting ready to defend president trump's immigration order in court. now more than 120 companies have joined the fight against the travel ban. plus your morning markets and money. stock futures inching higher as the greenback gains again. it's february 7, 2017, and "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 michelle caruso-cabrera and brian sullivan. joe and andrew are out today. >> power breakfast. >> it is. there were some slight losses yesterday for the markets. you can see this morning the dow futures are up by 35 points. s&p futures indicated to open up by 2.5 points. if you look at what happened overnight in asia, you will see when we flip the board that there were losses across the board. the nikkei