good morning. a remarkable rally. u.s. futures in the green after all three major averages do something they haven't done in a quarter of a century -- that particular statistic straight ahead. puzder withdraws. the latest out of washington straight ahead. and snap decision. new details about the messaging app's highly anticipated wall street ipo. it's thursday, february 16, 2017. "worldwide exchange" begins

right now. ♪ good morning. very warm welcome to "worldwide exchange" on cnbc. i'm wilfred frost along with courtney reagan in for sara today. good morning. >> very good morning. >> it's throwback thursday, with courtney here we're throwing it back to country hits. you'll have to educate me as we go through. who is this? >> this is lady a., right? lady antebellum. >> i guess we'll have some garth at some point? the only name i know. >> i hope so. >> throwback thursday, and another record high for the markets. yesterday all three -- four including the russell 2000 yet again hit record all-time highs. led once again by the financials. albeit a slightly broader rally yesterday than the prior day. renewed hopes of a trump tax plan, strong data which drove up yields, which drove up financials, as i already mentioned, some earnings, the likes of pepsi, procter & gamble

leading the consumer sectors higher. the bond proxies like utilities were underperformers. we are called fractionally higher today. that's a better picture than in europe which is in the red. we finished yesterday with the dow, s&p 500 and nasdaq closing at record highs this marks the best winning streak in 25 years. to put that in perspective, there had been a total of 67 trading sessions since donald trump was elected president. the dow has closed at a record 24 times during that period, which is quite astonishing statistic in the short-term. clearly strong performance in the long-term as well. let's look at the ten-year treasury note. once again that has been important for this rally. the fact it allowed financials to outperform and drag the rest of the indices higher. we went above.5% to 2.5% to 2.5

yesterday. the likelihood of a march rate hike is at 27%, up from 13% at the start of the week. for may it's above 40%. albeit yields have slipped a bit, back below 2.5%. might that mean we have a tougher day with profit taking for the banks? we'll have to wait and see. >> let's check around the world. european equities are lower, not continuing the gains that we saw on wall street yesterday. you can see all the major averages, germany, france, ftse 100 and the italian ftse mib lower by a half percent or so. basic resources, insurance stocks some of the biggest laggards. airlines like air france, lufthansa, those are also higher. seeing some earnings driving early trade as opposed to broader macro economic trends, at least in europe at this point. if we can get a check and see what we saw in asia overnight.

this was more mixed. china was stronger. japan, though, was lower. you can see by a half percent. toshiba shares under significant pressure, down about 8%. number of issues going on with that company. >> as for broader markets, let's look at oil prices. was higher yesterday -- higher a bit today, slightly lower yesterday. the energy sector underperformed. oil even with the bounce back still down just 1% for the week as a whole. 53.2 on wti crude. let's look at the dollar board. the dollar has had a decent week as a whole with this hawkish sentiment and the stronger data and yields moving higher. but slipping a bit today, as you can see. all of the major currency pairs bouncing back against the dollar. we have nearly half a percent of weakness for the u.s. dollar today. again, mostly in this recent run to record highs, we've seen strong correlation between yee s

yields moving higher. so yields are slipping, the dollar is slipping, might u.s. equities see profit taking? gold just into positive territory for the week. recent months it has been very strong for gold. started softly this week, but coming to an end nicely for the week with a half percent of gains. following a developing story out of washington. president trump's pick to be the next labor secretary is out. andy puzder withdrawing his nomination over growing concerns about his business record and past personal issues. the chairman of cke restaurants confirming his withdrawal in a tweet saying i'm honored to have been considered and grateful to all those who have supported me. we'll have much more on this developing story ahead. clearly another issue for the trump administration to get over. i suppose of all of the nominations, without this latest pr issue for mr. puzder, it was already looking hard to get him

confirmed. there was seven or eight republican senators who were opposed to him. it's not as big a blow as if he lost other high-profile appointments. >> several delays for the confirmation hearings, a lot of minimum wage groups were very interested in this pick. doesn't look like it will be in the cards this time around. >> chuck schumer describing it as a victory for the american worker. turning to today's agenda, a trio of economic reports are out. weekly jobless claims, monthly housing starts and the philly fed survey at 8:30 a.m. eastern time. housing starts are expected to be unchanged. as for earnings, results before the open from transcanada, the operator of the keystone xl pipeline, also getting numbers from magazine publisher, time inc and fast food giant wendy's.

the top corporate news, new details on the planned initial public offering of snapchat. landon dowdy has all the details. >> reporter: good morning. it's becoming one of the most anticipated offerings of the year. the "wall street journal" reporting that snap has set a valuation of between 19.5 billion and $22.2 billion which would work out to roughly $14 to $16 a share. that would be at the low end of the 20 to $25 billion range that snap previously targeted. at that valuation it would make it the largest tech offering since alibaba in 2015. investors will watch for signs in a revival of tech ipos after 2016 was the slowest year for the sector since 2009. some question whether snap is worth the valuation due to slowing growth and daily active users, increased competition and the limited control that new

shareholders would have. the journal says snap will give an updated filing with the s.e.c. as early as today. shares could be priced as soon as march 1st. one to watch. back over to you. >> thank you very much. some notable comments yesterday from new york fed president bill dudley. dudley offered a similar view to what we heard from fed chair janet yellen on capitol hill this week. >> the baseline forecast is pretty similar in 2017 to 2016. slightly above trend growth, a bit more pressure on the labor market. gradual rise in inflation back to the 2% objective. if we say on that trajectory, as chair yellen said yesterday and today, we would expect to gradually remove further monetary policy accommodations, snug up entruinterest rates fur in the months ahead. and the boston fed president

sees at least three rate hikes coming this year. will it be march or may? we'll have to wait and see. >> start of the week, march rate hikes were 13%, now 27%. meaningful move up. not the best case. may hike odds now just above 40%. not quite the best case, but we can see a move in sentiment over the course of the week and the prior week as well, particularly with ten-year down, but yesterday getting up to 2.52%. a big swing, but people think we will not get three but two. >> if we were to get three, you would think march. >> march or may, but the tonight very different than ten days ago. charlie munger addressing

shareholders yesterday. he said some of president trump's ideas may prove constructive for the country. the comments were interesting considering his position about a year ago suggesting trump was not morally qualified for the white house. among the other topics discussed, recent stakes in apple and the airlines. >> think of the hooting we've done over the years about high-tech, we don't understand it. there's no confidency, worst business in the world is airlines. what do we appear in the press with? apple and a bunch of airlines. i don't think we've got -- we've gone crazy. i think the answer is we're adapting reasonably to a business that's gotten very much more difficult. i don't think we have a cinch in either of those positions. i think we have the odds a bit in our favor. >> about two hours long he spoke about lots of tough yesterday. you can catch the full version and much more detail on cnbc

pro. check out cnbc.com/pro. warren buffett will join "squawk box" monday february 27th in the annual ask warren show. this is the first time he comments on barclay's holdings after the filings. pose your questions wi with #askwarren. the question box is open. >> i want to get my question in about walmart. >> which will be -- >> he decided to pare back his shares. i want to know why. is he worried about retailer or the consumer? >> charlie munger yesterday did make some comments on that. he was critical of mistakes. we have not heard much from anyone at berkshire hathaway them since the scandal. becky and the team will be grilling mr. buffett on those topics. nestle reporting

disappointing 2016 results. the food giant seeing a slowdown and expecting sales growth to remain under pressure in 2017. revenue missed analysts forecasts. organic sales grew just 3%, the fourth straight year nestle has missed its 5% to 6% target. the nestle ceo spoke to cnbc earlier today. >> we certainly have a strong meet or exceed guidance. that gives us wiggle room in that regard. long-term, clearly there's a commitment to drive organic growth. we also have a commitment to be back in mid single digits by 2020. take a look at nestle shares. they are down about 2% at this point. the ceo also said he is keeping his eye out for deals. lenovo missed forecasts as

supply constraints and a weak macro environment weighed on results. the world's largest pcmaker said soaring costs for components like memory and disk drives are eating into margins. shipments from the mobile phone business fell 26%, but lenovo expects to turn around that unit by 2017. shares suffering significantly. down 6.7% in hong kong. we have some more stocks for you to watch. cbs managing a fourth quarter beat despite a drop in ad sales. the company blaming fewer nfl thursday night football games and lower than expected ratings for those games. here's what cbs' ceo leslie moonves told analysts on the call last night. >> clearly this has been a hot button issue across the industry. it bears repeating that the nfl is the premiere property in all of media. we feel good about our long-term partnership. it's also fair to say this season's decline as well as having three fewer thursday

night football games affected our advertising revenue. >> the nfl is just a key hot button topic for many media companies this time of year and previously when those games were being broadcast. you can see cbs shares are called lower in the premarket by 1.5%. cisco posting a higher than expected quarterly revenue and profit helped by strong demand for security products. the company's security business revenue jumping 14% for the quarter topping analysts estimates. cisco systems shares up about 1.3% at this point before trade opens. applied materials topping first quarter estimates. the semiequipment giant raising its outlook for the upcoming quarter. shares are called just marginally higher. kraft heinz seeing a 4% drop in net sales hit by stronger dollar and lower demand in the u.s. still the company managing to report higher than expected adjusted profit helped by lower costs. either way, shares off 2%. marriott's revenues surging in the latest quarter.

the hotel chain helped by its acquisition of starwood hotels and resorts. shares flat in the premarket. chemours shares are off around 2%. still to come on "worldwide exchange," the g20 meets rex tillerson. we're headed live to germany as the secretary of state makes his first big trip overseas. and why mr. doom and gloom is not sounding too gloomy. the one area of the market mark faber really likes. stay tuned, you're watching "worldwide exchange" on cnbc. al. 's not something u do now and then. or when i's convnt it's using statof-the-art simulators 's not something u do now and then. toetter epar for ansiation. it's it's giving offshore simteams onshore support. 's not something u do now and then. anit's empowering anyone tstop a job if something't seem right.

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welcome back to "worldwide exchange." if you are just getting up, let's get you up to speed on market action. yesterday another record high across all three major averages, led higher once again by banks. part of the reason for that is yields were moving higher. stronger economic data and some fed speak that suggested rate hikes might come earlier than we thought about a week ago. that pushed the yield on the ten-year above 2.5%, 2.52. this morning the yield is pulling back. price is going up. so we are below that, 2.48%. that is partly why futures are lower. we don't have that correlation of stronger yields picking up the market. we are called lower, just about 0.1%. the fact that yields are

slipping mays it may be hard for the markets to rally throughout the course of the day. let's look at emerging markets. they continue to rip higher. up a full 10% on the year. slipping a bit today. but generally over the past three months, 11% return. mark farber, a man who is usually gloomy likes emerging markets. let's listen to what the author of the gloom, boom and doom report said overnight to cnbc in asia. >> everyone makes these huge hoopla about the u.s. market going up this year. >> right. >> we are 4.66%. hong kong is up 9%. singapore is up 9%. and mexico is up 6%. brazil, argentina, up around 20%. so actually trump policies have been actually quite good for foreign markets. >> farber went on to say the

best way to play a global rally is to own emerging markets. we'll have to see if a stronger dollar derail there's a performance. now to germany where the g20 summit is about to get underway. u.s. secretary of state rex tillerson is there. hadley gamble is live in bonn with more. >> reporter: the u.s. has been characterizing this as more of a listening tour and a chance to build relationships abroad more than anything else. they say there won't be much news to be made, but the new secretary of state, rex tillerson, will be meeting on the sidelines of the g20 in bonn with other ministers, including sergei lavrov, the foreign minister of russia. and for european leaders, a lot of questions about the transatlantic relationship, not just nato but also the european elections coming up in france

and germany an when talking about nato spending, big questions over whether or not the european nations are pulling their weight. back in 2015 the united states spent some $650 billion on nato defense budget spending. that was over 70% of the full total spent on nato for that year. continuous conversations on the sidelines, not just at the g20 but at the nato summit in brussels over whether that is enough. listen to what general james mattis had to say. >> it's a fair demand that all who benefit from the best defense in the world carry their proportionate share of the necessary cost to defend freedom. we should never forget ultimately it is freedom that we defend here at nato. >> essentially the message from general james mattis is that the united states would moderate support for nato depending on whether or not these other nato commitments step up making their

full commitments. >> hadley, there's been various pressure in plays like the united kingdom in terms of theresa may jumping to meet the new president, inviting him for a state visit. what is the tone on the ground there about other countries and how warmly and openly they're welcoming meetings with general james mattis and rex tillerson. are they open to it or is there a similar sense of apprehension about what it might do for their own political standings back in their respective countries? >> there's an openness about meeting with rex tillerson. you have to remember he was the ceo of exxonmobil. not a lot of apprehension but a lot of positivity in terms of finally getting answers on what u.s. foreign policy will look like. the hoopla in the united states over what's happening with michael flynn, the russia question. folks here much more focused on what it means closer to home for

them. lots of questions about nato spending and trade deals and treaties. at the end of the day, they're looking to this new u.s. secretary of state to lay the ground work for what the future of the relationship will look like. >> hadley, thank you very much for that. still to come, why one cold weather company could make for a red hot ipo this year. we'll be back with details of that and all the rest of the market news you need ahead of this thursday trading day. back in a couple minutes. theier. haven't heard of - o researers of technologies that day, u will me call them thebest of the best

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welcome back. spotify is picking up and moving downtown. the music streaming service will expand and move u.s. headquarters in manhattan from the chelsea neighborhood to 4 world trade center. the company will set up shop in 400,000 square foot of space. spotify plans to add about 1,000 jobs. the deal marks a milestone for 4 world trade center making it the first building on the redeveloped site to be fully leased. >> canada goose has filed for an ipo. the maker of high-end down jackets will list on the new york stock exchange and the toronto stock exchange. it is seeking to raise about $100 million in the offering. the company sold a 70% stake in bane capital in 2013. over the past few years it has been pushing to grow sales in the u.s. and the northeast. i think they have. i see those jackets everywhere.

>> everywhere. they have good exposure already. >> they do. still to come, the top stories and a round up of the global market picture. plus today's top trending stories including a story about an ambitious 7-year-old girl who managed to get the ceo of google to write her a letter. more coming up. stay tuned. ateaanturn it medal in ydiscovers,ally - dinoakthro... ...proof tblk hole ll intsinguly. innotion runs on percompute...yes. .andupcomper n on intel. yoe per smart. and per ♪ h!fo! falsararyelash

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u.s. futures mixed as the s&p comes off its longest winning streak since september 2013. labor pains, president trump's pick for labor secretary is out. and dear google boss. the letter from a 7-year-old that's lighting up the internet. it's thursday, february 16, 2017, you're watching "worldwide exchange" on cnbc. ♪ gorging. very warm welcome to "worldwide exchange" on cnbc. i'm wilfred frost along with courtney reagan in for sara today. it is throwback thursday. we're throwing it back to country music. >> love it. love every bit of it. this is reba mcentire. let's check the global markets this morning. give you a little reset at 5:30 a.m. on the east coast. four hours before the markets hope in new york. so, we've taken a bit of a pullback here on the futures.

if the dow jones were to open now, it would be higher by 12 points. the nasdaq marginally higher, the s&p down just a touch. we've seen a pullback in yields. we want to check on the equities from around the world. in europe, we have seen a mostly lower picture as well. not following through on the gains the u.s. markets saw yesterday. earnings news driving some trade over there, including nestle and airlines as well. if we can get a check on what we're seeing in asia, this is more of a mixed picture. china stronger, but the nikkei was weaker overnight, down a half percent. being pulled down further by toshiba shares. >> let's look at broader markets. oil prices are higher this morning. a bit softer yesterday. one of the reasons why energy underperformed. oil services companies like transocean were down yesterday. slightly higher today. 53.2 for wti. over the course of the week as a

whole, oil still down, just over 1%. the ten-year treasury note has been key for all markets this week. yesterday more hawkish commentary out of a number of fed speakers, but also stronger data in the morning. we saw expectations of a rate hike increase. now at 26% likelihood for march. above 40% for may. that's a significant improvement from earlier in the week. the ten-year above 2.5%. that helped bank stocks and was a key reason why all three indices closed at record highs. we are slipping this morning, at 2.48%. the dollar, which has been strong off the back of that hawkish tone relating to mon monetary policy this week. retracing steps this morning. all the euro, yen and pound pairings are up about 0.4% against the dollar. gold prices gained yesterday.

up a bit today. taking gold into positive territory for the week, just about after what has been a strong couple of months for gold. at 1,237. >> now to a developing story out of washington. andy puzder, trump's pick to be the next labor secretary is out before he was really in. kayla tausche joins us from the nation's capital with more. >> opposition to andy puzder was standard from the beginning, focusing on his issues he would face as labor secretary but then included his complicated finances and a messy divorce that happened some 30 years ago. republican support eventually eroded to the point where it was unclear whether his nomination would find support in the senate, much less the committee slated to hold his hearing today. interestingly you did see some commentary from the republican community. senator marco rubio sent out a tweet commending puzder for withdrawing, and senate majority leader mitch mcconnell saying i'm confident he will continue

to find ways to contribute to his time and talented to have an impact on our nation. puzder will return as chief executive as fast food restaurant cke. some names in the wake of puzder's resignation are peter kersenow and alexander acosta. katherine templeton, and joseph guzman, a professor of labor relations at michigan state who advised trump during the campaign. it's a different group than was rumored and reported in november before trump picked andy puzder for that nomination. one of those reported names back then was wisconsin governor scott walker. we reached out to his office yesterday, a spokesperson said he has absolutely no interest. wilfred? >> as you said, another blow, i suppose, to washington, the white house administration this week. as you also said, he was facing

quite significant opposition to get his confirmation pushed through either way. is there more focus thereforeon who might replace mike flynn as national security adviser than this labor secretary replacement? that's already been in the works throughout the week. you had an acting nsa basically put in place right away, then reports overnight that there's been a replacement for general flynn that has been chosen. in washington a lot of focus on two things. at 10:30 you have a vote in the senate on mick mulvaney, a south carolina congressman, one of the co-founders of the house freedom caucus, he has been nominated for the director of office of management and budget. there has been senate opposition to him, despite the fact he's been a working coming man since 2011. last night senator john mccain said he doesn't believe mulvaney would be behind expanding the military as much as putting the country on a sustainable fiscal

path. that's something to watch. at 2:30, the president will be meeting with the attorney general, jeff sessions. with all of these reports about a potential lack of trust between the intelligence community and the president, that is going to be a focus as well as a potential new draft for that immigration executive order. >> great stuff. thanks for that. kayla tausche in washington. immigrant workers planning a strike today as part of a day without immigrants protest. restaurants, bakeries and other businesses closing as thousands of foreign-born workers participate in the one-day strike against president trump's immigration policies. the nationwide effort orchestrated by immigrant advocacy groups calling for workers to stay home, avoid shopping and close businesses to demonstrate their impact on the economy. general electric's ceo jeff immelt commenting on trump's travel ban on "mad money" last night with jim cramerment. >> i think we need a good immigration policy. i understand the president's desire to keep the country safe.

but we need to be open to talent, things like that. if we don't do it here, we're also in bangalore, we're in munich, budapest, all these other countries around the world. the amazing thing about software, you can do it any place you need to if that's where the talent is and that's what you need to do. >> immelt said there are a lot of things that the president is doing that he likes, including tax reform, regulatory reform and investing in infrastructure that we don't quite know what the tax reform will look like yet. he's just told us it will be coming. to the top corp praorate st snap is valuing itself between $19 billion to $22 billion.

that would be at the low end of the 20 to $25 billion range that snap previously targeted. at that valuation it would make it the largest tech offering since alibaba in 2015. samsung looking into whether its chief to be arrested. some stocks to watch today, wider than expected fourth quarter loss for sun power. pricing will be competitive this year, and customer concerns about possible changes in u.s. tax policy is slowing some sales. shares off 5.24%. tripadvisor's fourth quarter earnings and revenue fell short of forecast. the travel review site was hurt by a drop in display ads and a decline in sub revenue. shares off 5.6%. molina healthcare is forecasting 2017 profits below

analysts estimates. they cite continuing challenges from obamacare and is advocating for changes to level the playing field. shares down 14%. a trio of economic reports are out this morning. weekly jobless claims, january housing starts and the monthly philly fed survey released at 8:30 a.m. eastern time. housing starts are forecast to be unchanged last month following a more than 11% jump in december. as for earnings, results before the open from transcanada, the operator of the keystone xl pipeline, numbers from time inc and fast food restaurant wendy's. time for our top stories. elon musk speaking out about trump's travel ban on twitter, but almost immediately deleting those tweets. regarding government policy, there are lots of things that people don't agree with. this is a normal function on

democracy. these tweets an deletions sparking interesting sand musk saying they were earlier drafts. they came quite a few weeks after the issue at hand. while people try to dig their way out of accidental tweets, there is some truth in what he saying. he probably did these drafts, they stayed on his computer and he hit send a few weeks later. >> this was someone who was going to go to the white house to be a part of the advisory council? >> he still did go, he said he wanted to go, still better to be a part of the conversation in the room. he decided to still be a part of that counsel. a 7-year-old girl from the uk going viral after she wrote a letter to google asking for a job. chloe tooked to linkedin saying after seeing images of google

offices with bean bags, go carts my 7-year-old decided to write to google to see if they would give her a job. she said my name is chloe, when i'm bigger i would like a job with google. the google ceo responded by saying i think if you keep working hard and following your dreams you can accomplish everything you set your mind to. i look forward to receiving your job application when you're finished with schools. >> good luck. that also means they have to keep the post for another 11 years. >> maybe longer if she has to make it through college. >> he's backing himself to save the job for a long time. incredibly adorable. next trending story. emma watson giving life advice to commuters at grand central terminal earlier this week. she appeared on an ipad hoisted up on a makeshift booth as part of a social experiment. she charged $2 per guidance

session. it's not clear what the project is and where proceeds will go. odd one. not sure how well people could listen to it and hear it. we'll have to see how that story develops. >> interesting. coming up, today's must-reads and don't miss "sports illustrated's" swimsuit model, kate upton on squawk alley today at 11:00 a.m. eastern time. stay tuned, "worldwide exchange" will be right back.

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welcome back to "worldwide exchange." time for our must-read stories catching our attention. my pick is in the financial times titled gary cohn is embarrassing goldman sachs. a strong title which i don't agree with, albeit the content of the article does make some valid points. basically saying he's been too close to the president and very clearly close to the president and clearly driving this call for deregulation, which is tough for wall street to be associated with. he writes mr. cohn honestly believes in regulatory reform and was the most senior economic figure in place before mr. mnuchin's confirmation, that only reinforces goldman's presence. his sin is tactlessness, not corruption. unlike mr. rubin, he is

relentless, restless and happiest at the front. his point is that when those executive orders on financial deregulation have been signed, gary cohn has been standing by the president. he did a whole series of interviews straight afterwards on that same day. and this is bad for wall street to be closely associated in terms of financial policy moving forward from other people i talked to on wall street in terms of in banking areas, they are worried that it's going to be seen that whether it's donald trump and various billionaires that he's close to, whether it's people on his advisory council like steve schwarzman and gary dimon, it will be framed as if the banks themselves are writing the policy that is going forward and governing them. if you get another mistake down the line, it will be such fodder forev for the anti-wall street groups. the title is vastly exaggerating it. i don't think he's embarrassing

goldman sachs or anyone at all, gary cohn, but wall street does seem to be close to the policy. >> he has a strong presence there, but not the first ex-goldman banker in the white house or exerting a strong voice with those in the highest office. my pick is in the "wall street journal." titled is this trump's watergate? also a strong title. democrats want to cut his power off, his hold on much of the american public. to do that they need to make him look like a loser. on monday the president lost mike flynn. on wednesday, he lost andy puzder. both fell in large part because of an understaffed and dangerously de-fused white house management structure. the opposition, democrats, unions, never trumpers now know if they can turn three republican senators against him, he won't matter.

i don't necessarily agree with it, he's ceo of the white house, all of his support staff there, what's going on under the surface, these rumblings are a little troublesome for the american public. >> they are, but some comparisons pretty strong already. we'll have to see the developments as we go on. we're approaching the top of the hour, that means it's getting close to "squawk box." becky quick has more on what's coming up. >> so many things about business relating back to washington. a lot of experts are here joining us to talk about that combination. we will be joined by former white house chief of staff, bill daley, also the commerce secretary. he has some real expertise on being a cabinet member and on being somebody inside the white house. also, senator roger wicker from mississippi will be joining us. he's a member of the armed services committee. we can talk to him about some sabre rattling we've seen out of russia recently, a lot of other

issues happening. steve sadoff, head of the nfr, a former ceo of sachs will talk about the retailers who made the move to washington yesterday to talk about the border tax. we'll get his take on whether or not the border tax will go through. plus two ceos joining us, ceo calls on "squawk," the ceo of intrexon and hasbro. and our guest host is walter isaacson from the aspen institute. a lot to of things to jumble around, mix it up, but no swimsuits this morning. >> though there will be some on "squawk alley." >> really? >> yes. cape upton is on squawk alley. >> unfortunately wilfred will not be joining that program. >> and i won't be in the box with them either. i'll stay back here. >> been a very frustrating couple of days. becky, thank you very much. still to come here on "worldwide exchange," news out

of washington doesn't seem to be shaking the street. we'll get bill stone's take on the rally. he's chief investment strategist from pnc asset management group. n befo it evcoobm. becaustys vebeing tisfd. and alys working t

becaustys t igu mean pay h h bacso let's. anks f doing this, d kning your future bout more an just you. 'edrd jes makes sense of i. t igu mean pay h h bacso let's. anks f doing this, d welcome back. futures at this hour are mixed. all three indices and the russell hit record highs again yesterday. joining us is bill stone. good morning to you. thank you very much for joining us. the story of the week has been once again the strong correlation that equities maintain with what bond yields are doing. equities can rally when yields are going up. is it very hard to expect equities to continue to rise if we don't get to see yields going higher, too? >> yeah. i think it's pointing to i'll say the reflation, which right now any way is viewed as a

positive, which is why those are correlated at the moment. as much as i think it also reflects the market looking for those pro-growth policies out of the administration. as long as you see that happening, you know, it seems like, to a point obviously, interest rates go up too much, that squelches it out again. at least you're right, that's the trading mode we're in. >> bill, with that in mind, banks, the broader banks index is up about 4% for the week as a whole. certain names like bank of america up significantly more than that. is the performance of that sector flattering what's going on across the other sectors and the rest of the economy? are we looking at these record all-time highs thinking we're off to the races again when it's really only one sector dragging the rest higher? >> i think there's some breath here. i do think the financials -- it's -- i'll still argue it's a good signal. the financials, i think, are showing a couple things. one is they usually benefit from good economic growth.

obviously they're in general domestically oriented. the other part is you're maybe part of it is they haven't acted as a good defensive hedge to higher rates. so that may be driving some extra flows in there that perhaps, i don't mo know if you want to argue more than show the underlying fundamentals. we like the group in that it is a place where it's a -- that good hedge, it's a reflection of some possibly better loan growth going forward. lastly, even though they had quilt a run, they're still not really very expensive relative to book value and if you think they can earn better than at least the recent past. >> we've had quite a run since the election. i think in the last 67 sessions under trump we hit all-time highs 24 times. do you think this market is too generous for president trump before we know details of key policies? >> yeah. i think that's the tough

question. i did sit here as i was trying to think about what to talk about. i was really are we going to end up with a sell on the news when we do finally get the tax plan? i know a lot of things have run up. we like the u.s. small caps now. part of that move is really probably the benefit that they'll get from most any tax plan. but i think the good news is, you know, the market is always a forward discounting mechanism. you can argue -- today is maybe an easier one after seven straight up days in the s&p, that is pushing on a good record. you see a bit of a pullback in the short run. i would say, hey, what do you think things will happen over the intermediate term. growth looks good. we think, you know, corporate earnings will look good. there's some -- we think some upside to those. so i guess i'd say, yeah, we'll probably get a pull back.

we always do. but i think the opportunity still remains to the upside. >> bill, you like energy. talk us through that. >> that is tougher. because that one has not been doing quite so well lately. i think the positives to it are, you know, at least it seems like prices have stabilized. and you don't worry about them falling through the floor for those companies. the second thing is you can say the administration is friendlier to the traditional energy companies out there. so i think there are some good places. they obviously are, like i said, taking a rest at the moment. but we do think that's a trend that will pick up again. >> bill, just quickly, 0 seco30 seconds to go, your view on the dollar and the hikes. >> you have to feel good about the dollar because interest rates are moving higher. we still say only two hikes this year, but certainly we have to say we're open to maybe a third one here in march.

>> bill, great stuff. thank you very much for joining us. >> thank you. >> bill stone of pnc asset management group. that's it for us on "worldwide exchange." thanks for joining us. "squawk box" is next. ishe thamas? e stakes are so high finans,you. how olves? u d' you paner th airm th vivevents d thfoune 500, celer insight perso to pn,

good morning. the market rally just rolls on. major u.s. indexes logging the fifth straight day of record closes. anybody noticing we're in the nasdaq market site, 6,000 on the nasdaq possible? we're getting there. a rundown of the movers straight ahead. a cabinet setback. president trump's pick for labor secretary, andy puzder withdraws from consideration. and a snap decision. new details on snapchat's highly anticipated ipo. it's thursday, february 16, 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. as joe mentioned, the dow, s&p 500 and nasdaq all coming off of the fifth straight day of record closes. the dow has logged a record high in 24 of the 67 sessions since the november election. yeah. this morning things are a mixed picture. you mentioned the nasdaq, it's at 5819. >> i quickly did -- you remember nasdaq 5,000. we wanted to get back to nasdaq 5,000. >> took a while. >> it did. >> if it goes to 6,000 -- >> a 20% --