good morning. markets now. the ftse slips again after turning in its worst day since brexit. the move today much smaller. a big vote happening in just hours from now on theresa may's call for a snap election. a live report from london straight ahead. another day, another corporate pr debacle. this time adidas is underfire. why they are apologizing to customers. and is china's red hot economy about to hit a giant speed bump? we'll explain details on that. it's april 19, 2017, and "worldwide exchange" begins right now.

♪ good morning. welcome to "worldwide exchange" on cnbc. i'm sara eisen. >> i'm wilfred frost. very good morning to you from me as well. >> let's check in on the global markets. after a triple digit decline yesterday and some ugly earnings from ibm after the bell. thought it would be a big drag on the dow, especially when it was down about 6%. dow futures are holding up. they are unchanged right now. just barely positive. s&p futures are up 5. nasdaq futures are up 12. broad-based selloff yesterday. what seemed to get a lot of attention was the bond market. ten-year yield ever lower, moving to a low yesterday of 2.16. there's continued veracious appetite for u.s. government debt. the word on the street yesterday, increasing concerns about a government shutdown. remember next friday is the

deadline for a spending bill. will republicans end up passing it. they're on recess now? they have a few days when they come back next week. that's one concern out there. there's a number of them. there's a big dip in iron ore yesterday. chinese stocks continuing to get hurt. a bit of the concerns out there. >> the ten-year hit a low of 2.16. that hurt bank stocks across the board. bank of america, had a big beat, was down yesterday. we'll talk more about the banks. the headline, goldman sachs down 4.6% by the end of yesterday's close. morgan stanley comes today. asian equities for you. for the most part they have been down today. hong kong up nearly a half percent. shanghai, 1%. japan eking out a small gain. a look at european trade. big move in the pound higher yesterday. that saw the ftse 100 move lower to the tune of 2.5%. it's taken today with a fraction more of a decline. the ftse 100 into negotiate sieve territory for the year.

the rest of europe was soft. france as well down 1.7%. of course as we near the french election, there's been weakness there. the latest polls have macron, the center-left candidate at 24%. he will pen, the far-right candidate at 23%. let's look at the broader markets. >> oil prices under pressure yesterday. they're firming up this morning unchanged. wti crude 52.43. brent sits below $54 a barrel. even nat gas is just positive this morning. as for the u.s. dollar, a weak dollar day across the board yesterday. the dollar following yields lower, but popping back this morning against the japanese yen. so definitely the tape has a better sentiment. 1.0885 is the dollar rising against the yen. the dollar is also stronger against the euro. the pound was the real mover of

the day yesterday, sharp, sharp rally. that's what sunk the ftse 100 exporting index. worst day since brexit? >> down 2.5%. the pound up above 1.28 for the first time in 2017. it's only briefly been above 1.27. that move significant breaking past certain resistance levels. >> quickly showing you the price of gold. it's been on the move higher lately amid geopolitical concerns and the vix. gold prices down this morning at 1,284. the fed and more earnings in focus today. the federal reserve beige book report, which tracks economic conditions in the fed's 12 districts is out at 2:00 p.m. boston fed president eric rosen grin is spe rosengren is speaking this afternoon. blackrock, u.s. bancorp and

morgan stanley out with reports before the bell. lots of focus on morgan stanley today following that miss by goldman sachs yesterday. the question will be is goldman sachs just the outlyer. so far it has been. trading revenues in the fixed income area, which was where that miss manifested most of all, goldman sachs up only 1% year-on-year. compared to the likes of bank of america up 29%. significant miss for goldman sachs, only up once year-on-year. morgan stanley guided down already their trading revenues for march. they came forward and guided down to say it will be about flat, quarter on quarter-year-on-yequarter,-yea that will make them the outlyer. >> now that you got most of the banks, the overall picture of the financial sector, is it

continuously focused on where interest rates go? >> yes. on the eps line, every one of the big banks except goldman sachs has beaten, but bank of america yesterday was a solid beat but fell because yields are falling. on friday we saw the likes of citigroup and jpmorgan beat, wells fargo less so. monday we got a bounce back because yields picked up. the correlation very strong. but the key point about yesterday, the question of does goldman sachs' miss suggest the trump-related banks rally is over? no. if interest keep coming down, maybe that does. goldman sachs missed, particularly if morgan stanley makes them the outlyer, it was trading and specifically a goldman sachs issue. >> goldman sachs down 10% this year, underperformed versus a jpmorgan down about 1% this year. >> been a big mover. the moves have always been accentuated with goldman sachs because of the dow, when we were

pushing for dow 20,000, the next target it moves disproportionately, but it has pulled back. to the uk where parliament will move today on theresa may's plan for a snap election in june. willem marx is live in london. what can wie expect today? >> this will be a formality this vote. the prime minister is seeking approval from her own party and the labour party to hold this election on june 8th it seems the labour party led by jeremy corbyn approving that move. theresa may laying down the gauntlet for her political opponents about the criticism of the way she's been landaling brexi handling brexit. >> let's put forward our plans for brexit and alternative programs for government and then let the people decide. and the decision facing the country will be all about leadership. it will be a choice between

strong and stable leadership in the national interest, with me as your prime minister. or weak and unstable coalition government led by jeremy corbyn. >> so the prime minister there talking about the need for leadership. this is not just leadership over the uk. this is also leadership over the conservative party, her own party. one concern theresa may what was the very slim parliamentary majority. she has 17 mps over the halfway line. she's worried that some pro brexit members of her party will stifle concessions she might make over the next two years during these brexit negotiations. >> willem, on top of that, she's just very, very confident she can increase her majority and the polls suggested that's the case. >> that's true. she's 20% ahead. over the course of the weekend we've seen thee polls showing she has labour on the ropes, very divided under jeremy

corbyn. a lot of people say this is political opportunism, but realistically this is a good call by the prime minister. she will likely increase majority, whether it beats the level she needs to face off these brexiteers in her own party we'll find out in june. >> willem marx outside parliament, thank you very much. wanted to put in perspective the size of that lead. the latest poll gave theresa may an over 20% lead over labour. david cameron won it on 37% of the vote, a 4% lead over labour. that 20% lead is massive. polls can be wrong and there's a big swing factor of how the eu plays out as an election issue. it's true that certain conservative mps in wealthy urban constituencies and parts

of rural southwest will likely lose their seat. the gamble is that theresa may thinks that will be offset significantly by winning seats in labour. >> what does it do to the prospects of a so-called soft brexit and hard brexit which are squishy terms? we talked to the foreign secretary about that yesterday. hasn't she been pushing immigration over common market? if she gets a stronger, bigger mandate isn't that more negative? i thought the pound rally was more interesting. jim o'neill talked about this, it's hard to read into the 4 x move, the british pound was squeezed higher on the lack of uncertainty over that announcement. in general what does it mean for negotiations? >> it's interesting. william hague's answer is what you would expect the government to say, which is that theresa may would articulate she doesn't want a hard brexit any way. it's just that the political game playing in westminster means she always gets framed as

if that's what she's going for. that's why she is going for this election to quiet down the naysayers, both the hard right of her party who do want a hard brexit, and also the center ground who maybe don't want one at all. so she's going for this to give her the authority to articulate a position she wants. she says it is middle ground. >> she's not the hard brexit, hard liner that maybe she was painted as in the early press reports? >> i think that's the point. the press and the opposition parties always attacked her for that. that's the game face, she will try to close them down with a bigger majority. the markets think that gives her a bigger hand. french and german elections are upcoming. the negotiations can't start until then. that's been thought about with pro eu parties, that that would strengthen the eu's hand, their national elections are so far down the road, this timinetimin would help the process.

>> we'll see what happens in france this weekend. >> that's the other big issue. shares of ibm down big in the premarket on the heels of its earnings report. let's get to landon. she hat detas the details. >> the tech giant reported a 13% drop in quarterly earnings after yesterday's close. narrow profit margins across its divisions that manage cloud computing and watson artificial intelligence. these are key units that ibm is betting big on to transform the business. revenue falling for the 20th straight quarter. here's what martin schroeder had to say yesterday on "closing bell." >> the 20-quarter headline is probably not the framing we're thinking about we're thinking about how do we continue to move the business and our clients to get to growth. the portfolio will grow. i am confident that the ibm company will grow again.

it takes time -- we're taking time. >> while big blue's legacy business selling hardware and software have been shrinking, there's a bright spot. revenue from the faster growing strategic imperative rose 12% from a year ago and business is likely to pick up in the second half of the year. for now ibm has the fourth biggest weight in the dow. the stock was down about $8 pre-market. that translates to roughly 55-point drag on the dow. that's something to watch today. >> similar story yesterday with goldman sachs and johnson & johnson. landon, thank you. some other stocks to watch today. yahoo revenues jumping 22% as quarterly results smashed expectations. this is likeliya huaiy yiyy yiy quarterly result before it merges with verizon. the medical devicemaker

intuitive surgical seeing a rise. and ultragenx up 19% in the premarket. china auto sames hahina aal red hot over the last few years, but is that about to come to a screeching halt? phil lebeau has more from there next. >> good morning or good afternoon from a windy shanghai, the question at the auto show is can shanghai have positive auto sales this year? we'll talk about the outlook and the one sector doing well when "worldwide exchange" returns after this.

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there's always room to move up. of course, it depends on you, how hard you work. ♪ it's going to be a busy period on this continent for elections. 62% of eu gdp faces elections in the next 13 months. 51% of that in the next six months. first up is france, then the uk, then germany. italy has to hold an election by the end of may 2018 at the latest. that had a big impact on european equity markets yesterday. the ftse 100 fell 2.5%. the worst day since brexit, more because of the rise in the pound off of theresa may's announcement of a snap election on june 8th than outright reasons for the ftse to fall. it was a big fall for the ftse 100, a bit soft today, nothing

compared to yesterday. also worth noting the french cac was down 1.7% yesterday. as we near that first round election vote this sunday. i'll be traveling to paris overnight to continue coverage of that. otherwise, as you can see, germany and france up a quarter percent. u.s. futures taking a lead from that. they're up as well. about a quarter percent for the nasdaq. yesterday we did see slight declines for the nasdaq and s&p. the biggest decline for the dow, down a half percent. could have been down more with declines from goldman sachs off 4.5%. >> the russell 2000 outperformed yesterday. in other news, european car sales surged to a record high last month as car sales took advantage of a surging economy. european sales rose and sales in the uk rose more than 8%. the big winners, fiat chrysler and renault as volkswagen

lagged. in china, auto sales have been in overdrive the last few years, but is that massive run about to hit the skids. let's go to phil lebeau live for us at the shanghai auto show. >> let me show you a chart that gives you perspective on the growth in auto sales in china. in particular when you compare it with the growth in auto sales in the u.s. we talked for years really last three years about how the u.s. auto sales have been at a record level. look at where they are in china. more than 24 million vehicles sold last year in china. this year it's a slightly different story. it's been a rocky start to the year in china for auto sales. up 2% year to date. part of the problem is that the government raised the new vehicle tax from 5% up to 7.5%. had a number of people saying wait a second, i'm not sure if i should buy now or perhaps wait for them to lower it again. as a result, this has been the start of a year that has many people wondering if china auto

sales could drop this year. >> double digit declines in january and february. total decline 19%. we did see some indication in march of wholesale sales shipments increasing, but not a lot. so i have concern about this first part of the year. >> one segment where there is no weakening in terms of demand, luxury. we were at the mercedes event last night where they introduced the new world debut of the new s-class. here in china, luxury sales up 16% last year. mercedes saw a muj bhuge bump i sales. it was one of its best years. we're hearing that from a number of automakers, when it comes to luxury brands and how well they're doing. daimler is still bullish on this market as are all of the luxury brands. in the mass market, it's a bloodbath because the demand for

entry level suvs, that pricing has been cut into by the chinese automakers coming out with brands at a lower price point. that's manking it tough for all suv sales in this country it will be interesting to see what happens for the rest of this year and total demand for automobiles. >> phil lebeau for us, great stuff. other takeaways, it's even more windy in shanghai than on downing street for theresa may. >> i'm sure that got a lot of attention, but it was a good speech, citing the economic backdrbac backdrop as a reason for the election. >> it was a good speech. also a great hit from our phil labeau in chang high.

> shanghai. >> coming up, why adidas is saying i'm sorry.

welcome back. a developing story. former president george h.w. bush is being treated in a houston hospital for a mild case of pneumonia. a spokesman said he is ekt pexp

to recover. the 92-year-old was admitted on friday with cough. president bush is in very good spirits, but is being held for observation while he regains his strength. in other national news, democrats falling short in their bid for a flat-out victory in an election to fill a congressional seat in georgia. jon ossoff was just shy of the 50% threshold needed to win the position outright. he is the democrat and he will face the top republican vote-getter karen handle in june. the house seat became open when price joined the trump administration. the president tweeting early this morning, despite major outside money, fake media support and 11 republican candidates, big "r" win with the runoff in georgia. glad to be of help. that's just the latest in a string of tweets from president

trump on this georgia congressional election. now we head to a runoff. >> indeed we do. some stocks to watch. lamb research posting an earnings beat for its third quarter. the semiconductor equipmentmaker upping revenue guidances for the current quarter. and asml posting a beat. saying demand for its chips looks healthy. and akzonobel trying to fend off a takeover by ppg. akzo laying out a plan to separate out the chemicals business and pay share holders 1.6 billion euros. adidas is sending out an apology for sending out an e-mail congratulating boston marathon runners who survived monday's race. they said the e-mail was insensitive given three people

were killed in the boston marathon bombing back there 2013. one person on twitter said dear adidas, i love you, but you need to talk to whoever is going your e-mail marketing. another corporate blunder. >> corporate blunder, insensitive, but not a calculated -- >> not a united style debacle. the top stories are coming up in a round up of the global markets. plus remember when facebook bought that technology from oculus? you will never guess what they're doing with the technology. financial can help your customers make it happen sooner. so she can plug into her dreams... and they'll have a new addition for their new addition. whatever you're working forward to, even if it's chasing squirrels,

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good morning. banks on deck, morgan stanley, u.s. bancorp out with earnings before the bell, following that goldman sachs miss yesterday. >> ibm under pressure following its earnings last night. it's wednesday, april 19, 2017, you're watching "worldwide exchange" on cnbc. good morning. welcome back to "worldwide exchange" on cnbc. i'm sara eisen. >> i'm wilfred frost. i apologize you caught a moment of me doing a little dance. i'll explain during the next break. let's check in on the global markets. futures at this hour following a

day where we saw the dow decline about a half percent. could have been a lot worse given one or two big movers for the dow. the likes of ibm, goldman sachs, goldman sachs down 4.5%. morgan stanley earnings coming out at 7:00 a.m. something to watch. let's look at what futures are doing. they're bouncing back 6 points or 7 points for the s&p and dow. green at least. impressive to see that in light of some moves elsewhere around the world. asia is in the red. europe is not. asia down a bit in hong kong, almost a half percent, shanghai, almost 1%. europe is the big mover yesterday. worth noting that because the ftse 100 down 2.5%, the worst day since brexit in light of a strengthening pound as theresa may announced that election. also the french market yesterday down almost as much, 1.7%, that is as we near the french election. the first round vote is on sunday. all eyes will be on that.

>> also on the french/german spread starting to widen out to levels we have not seen since what you pointed out in 2011? >> since the -- >> european debt >> the mario draghi whatever it takes conversation in 2012. in 2012 it got to 150 basis points. some way off that, but we have not been at these levels for quite some time. if you see on almost any measure, the risk is rising. french banks are down. french stock market is down, all eyes on the french election for sunday. >> broader market picture. oil prices are firming up after a sell offyesterdoff yesterday. brent is up a little, about a quarter spepercentage point. ten-year treasury note this is where all the action has been in

buying of u.s. treasuries, that's pushed yields very low. they're bouncing a bit this morning. they hit as low as 2.16. 2.16 on the ten-year note. lowest level since back in november of yesterday. that seemed to drag stocks down with it, especially the yield sensitive ones like the financials. the dollar also weaker yesterday on the back of that lower yield scenario. it's firmer this morning against the euro. 1.0712. also stronger against the yen. that's building this morning. and stronger against the pound after the big rally yesterday. 1.2823. gold prices under pressure on the back of the stronger dollar. right now 1,283 an ounce. >> the uk parliament will vote today on whether or not to approve theresa may's plan for a snap election this june. it's expected to be a formality because the opposition parties have backed it. let's have a look at how this is being framed in the uk. we have some newspaper front

pages for you. the right wing pro-brexit daily mail saying crush the saboteurs, so backing theresa may to say she is doing this leak shelecti help brexit. a flip side angle, "the daily mirror" a lefter wing labour sporting party, time and again theresa may said brexit would be bad for britain, but yesterday she put herself and the tories first. and finally, "may heads for election landslide" focusing on the fact the polls have her with a significant lead. that election set for june 8th. we'll get a confirmation it's june 8th on a vote in parliament

in a few hours. >> market implications? it is leading the "wall street journal." may calls early vote to seize early mandate. no opinion beneath that one. >> just more reporting without the politicalization which we get in the british press. what it means for the market? the pound moved above 1.28 for the first time this calendar year. that's based on the ekxpectatio she can increase her majority and the uk side of it has more power and weight behind it. >> for reasonable negotiation. >> it's whatever the negotiation, in terms of whether the eu will win or the uk will win, she'll have more power on the uk side. it's not just the size of her majority, it's the timing. if we didn't have this leak shun, the negotiations would finish in 2019, followed immediately by general election. people were feeling in the uk that would mean the eu would know the final stages were coming and she would have to accept whatever was on the table because she would have to go to

the polls in her own country soon after. this kicks that down the road, because there will be a five-year period after june before she has to have a domestic election again. >> today it's all about earnings and especially after we got some weaker signals from goldman sachs. that was certainly a big point yesterday. johnson & johnson and ibm after the bell. is therapyings season going to this earnings season going to be as good as expected? 9% growth expected, it's early, we'll see. >> lots of downgrades for goldman sachs yesterday. most of the other banks have beaten. morgan stanley fascinating to watch today to see if they confirm that goldman sachs is the outlyer, then questions abound for them about why, and if it's a one-quarter asset. morgan stanley numbers out at 7:00 a.m. also worth floating for them

th noting for them wealth management about 35% of morgan stanley's earnings, so they should be able to prove goldman sachs was the outlyer. the fed, of course, in focus. the federal reserve beige book report, which tracks economic conditions in the fed's 12 districts is out at 2:00 p.m. boston fed president eric rosengren is speaking this afternoon. on the earnings front, banks in focus. blackrock, u.s. bancorp and morgan stanley out with reports before the bell. we'll bring you all of those throughout "squawk box." stocks to watch today, shares of ibm slipping after the firm reported a 13% drop in quarterly earnings. revenue falling for the 20th straight quarter. here's what was said last night about the results on an interview on "closing bell." >> we have not been solely focused on that top line headline number of when can we

print growth. had we wanted to print growth, we probably wouldn't have divested of $8 billion of businesses, divesting overseas where there's a currency impact. that's not been our focus. >> ibm trying to transform flin the faster growing cloud business. yahoo! revenues jumping 20% as quarterly results smashed expectations. this is likely yahoo!'s last quarterly report. yahoo!'s deal with verizon expected to close in june. shares of intuitive surgical ticking up after strong quarterly results. the medical devicemaker beating expectations thanks to its da vinci robot. posting an earnings beat. also upping revenue guidance for the current quarter. shares there are up almost 5%. bill o'reilly may soon be out of a job as reports say fox news is preparing to cut ties with its star anchor.

pressure has been mounting on the network following revolutions that o'reilly and 21st century fox paid millions to settle multiple sexual harassment claims. 21st century fox holds a board meeting tomorrow, but reports are saying the company has not finalize t izized an exit deal. o'reilly has been off the air since last week when he announced he would be taking a two-week vacation. money talks.impetus, all the ads pulling money from the show. >> the new york magazine article is worth a read. it paints it in the new generation of murdoch leadership, a decision being driven by the sons, james and lachland versus rupert, the father. will they win. it paints it as a battle for the new way of 21st century fox, especially if the sons win and bill o'reilly is off air.

>> if it happens, another big change to their prime timelineup. >> the big the. >> kevin spacey is tapped to host the 71st annual tony awards. the "house of cards" star is a first time host. the tony awards are hell on td 11th of june. >> for some reason everybody has opinions about this. it's interesting they're not going with the late show or the late late show comedian type. >> starbucks is cashing in on the unicorn trend. have you seen this? i haven't. >> they have the first color changing and flavor changing drink, unicorn frappuccino. the drink starts out purple, with the sweet and fruity taste. after stirring it, it changes the color to pink and the flavor becomes tangy and tart. the drink which was once on the secret menu will be available until this sunday.

this is a social media play. this is an instagram moment. that's what dessert places need to do. you need to get the buzz on social media. >> looks like a play to drive to you go to the dentist. >> it's pretty. you know i like all things pink. >> that must have lots of sugar, additives. >> so do all frappuccinos. >> it's bad enough the coloring must be so heavy, but how do they make the flavor change? >> i don't know. secret recipe. >> i'm not going to be buying one. >> that's the mystery. maybe you need to try it. >> i'm tempted to see someone have one. facebook wants to make virtual reality social. they unveiled spaces letting users create a digital avatar based on their facebook profile photo and have that person interact in a virtual world. they will be able to meet other virtual world friends. maybe we can use that to update this terrible impersonation.

>> maybe when you go to paris, we can do the show that way. i'll be in washington. >> this may be ginger. >> he's bitter about the red hair. >> that's why my cup is always facing the other direction. >> in your virtual reality profile, you can have your normal dirty blond hair. >> dirty blond. gorgeous blond you mean. >> yes. when we come back, today's must reads. as we head to break, a look at where european stocks are trading after an ugly session yesterday. the tone is a lot better this morning with france, which we're watching closely ahead of the election this weekend, up a third of a percent. ftse 100 underperforms again. nothing like yesterday where it had its worst day since brexit. we'll be right back.

. welcome back to "worldwide exchange." time for our must-reads. sara, you can guess what mine is on. >> i can guess -- >> oh, not from the "the financial times."british times. it's framed as the reason behind why theresa may called the election. one word, labour. daniel finkelstein, he says all of this collides with the juggernaut of the big logic, labo labour. the main opposition party will fight this election with a lead

their many of his own mps believe should not be prime minister, and without a credible policy on what is likely to be the central election issue which is brexit. >> she's capitalizing on their weakness? >> capitalizing on labour's disarray and hoping off the back of that she will win a big majority. of course polls can be wrong. there is a lot of uncertainty by calling an election. >> i fisted thers visited the pn wednesday, where koecorbyn had stance, asking six questions of her trying to get at her budget, didn't throw her off. she had a sharp comeback and pretty much destroyed him in all of the questions. it was about education, local issues. you could see that dynamic when you were there. >> the peak of the prime minister's questions were when lord hague, former leader of the

conservative party, both of them were masters at that. great back and forth debate. it's not been great recently. >> he didn't have the park againspark against her. my pick is the facebook murder was inevitable. kathleen parker gets at this. she writes i'd like to think it's because no one else is interested but apparently lots of other people are for every exhibitionist there are million voyeurs, we're all so riveted to our screens that a moment not captured and telegraphed to thousands of social media friends may as well not have happened. talking about the whole culture around facebook, the fact this was done, there was a video on facebook. we know julia boorstin told us facebook is working on this. why did it take a few hours to take did r it down, how can the something better than user flagging of bad material.

it's worth a read to show where we are and these dangers which are inevitable. we're approaching the top of the hour. the team is getting ready for "squawk box." becky quick has a look at what's coming up. good morning. >> good morning. we have new things in here today. i can hear myself for the first time in months. we're watching the markets. we're seen the markets can give us hope and take it back away. just the last couple days of trading people will be watching earnings closely. just to try to gauge whether the market is at fair valuations. so we'll watch that this morning. big pressure on ibm shares. we'll talk about that and continue to watch the parade of earnings out this morning with companies like morgan stanley that are reporting. we'll talk to mark grant coming up in just about 25 minutes a lot of things happening. he's been right about a lot of things.

everything from trump's election and how that is positive to the markets, to how low treasury yields have been. now he has a knnew thesis. i'm interested in hearing more about these points. wilf, you have been talking about what theresa may said yesterday, even before that announcement he decided this was a time to stare cleeer clear of. we'll talk to the president of the ford foundation, they have something called impact giving, where you change the way you give to fiphilanthropy. when i say bobby brown, who do you think of? >> the makeup artist. >> okay! >> i'm glad you answered that. >> i wasn't sure you were going go with makeup artist or singer. >> i would have gone with neither. i don't know either. >> wilf, i might have guessed that. we do have the makeup artist, bobby brown. the make up artist and e

entrepreneur. she will be joining us today to talk to us about her new venture. she has a new book out. she has left her company, bobbi brown, but she has a flu company she's starting up. she will work with lord & taylor withstand-alone retail shops that show all of this she's chl. he's a great entrepreneur. >> also about the decline of department stores. >> is this the time to be going into retail when things are disintegrating everywhere you go. >> for some reason, no matter what i hear about the doom of department stores, the makeup counters are always busy. thank you. >> thanks, guys. "squawk box" up in ten minutes time. still to come on "worldwide exchange," we're setting you up for the trading day ahead. you'll hear more from the market strategist who is bullish. we'll be back.

welcome back to "worldwide

exchange." quick check of futures. wall street's setup looks to be relatively calm and stable despite an almost 5% drop for ibm, which is one of the bigger weights on the dow. dow futures are up 12 points. s&p up 6. nasdaq up 16. karen cavanaugh joins us from voya investment management. after goldman sachs, johnson & johnson last night, do investors need to worry about earnings season? >> i don't think so. i think, you know, we got off to a bit of a mixed start. overall earnings picture is looking very good. as you said in your program, best since 2011. we also are seeing an earnings recovery in europe and japan, and in emerging markets. the global economy is moving forward. imf ratcheted growth up 3.5%. i think investors have a lot to look forward to. right now they're wobbly because

they're worried about geopolitical risks, but there's always geopolitical risks. i think as we get further into earnings season we'll see better numbers, the market will move accordingly. >> goldman sachs aside, earnings season has not been enough to keep the banks performing well. they're down since friday. that's despite four of the big five all beating on the epf line. >> that's because we saw yields tick down. financials are looking for higher yields in order to make money. overall we're anticipating still more than a 15% growth number in earnings for q1. because of this wobbly moment, yield curve down, investors worried about geopolitical risk, that's a temporary thing. overall the economic picture is getting stronger. not just in the united states, but across the world. so that is actually a buying opportunity for investors as investors have been waiting. the market gone up too far? i'll get in when there's a dip.

this is your dip. >> into the u.s. market specifically? if it's a global economic recovery that you predict that we'll continue to see, aren't valuations better in other markets overseas? >> absolutely. so the u.s. has been the big story over the last five years. it's been u.s. u.s. now europe, japan, emerging markets, their valuations are more attractive. i advocate that investors go out in a globally diversified manner. don't put all your eggs in one basket. u.s. will be fine, but also there's definitely opportunities elsewhere overseas. investors should be out there. you have bonds for safety. there's moments you want bonds, whether there's geopolitical risks and investors are nervous. those bonds help you ground your portfolio, but this is a great time to be in the market. i know you have a guest who will be talking about why not europe? i'm looking at europe and

earnings growth that's more than double digits, 30% for the first quarter, i think it's a great time to get out there and to be in europe and markets overseas. >> back to the u.s., are you concerned about the quality of the hard data we've had recently as opposed to the softer sentiment data? >> there's been press about hard data misses. even if i look at housing starts yesterday, that was a miss, it was down 6% month over month, if you look at that, it's up 9% year over year. some of these hard data misses are because we ratcheted up expectation significantly. they're not that bad. these numbers are not that bad. we're looking at global gdp up. uk up 2% been forecast for 2%. we have the u.s. unemployment 4.5%. we have the housing markets continuing to go. wages are starting to tick up.

manufacturing is robust. >> we have to leave it there. we'll see if the earnings paint that bright of a picture. e when. so thanks. being upfront is how edward jones makes sense of investing.

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good morning, ibm shares are sharply lower after the company said revenue fell for the 20th straight quarter. british parliament debating the prime minister's call for snap elections. we'll tell wlau to expect from this morning's vote. and speaking of snap, i think this might be a different snap. facebook making a big bet on virtual reality and taking a shot at snapchat. we'll show you what the company unveiled. it's wednesday, april 19, 2017. "squawk box" begins right now. ♪ live from new york where

business never sleeps, this is "squawk box." > . good morning. welcome to "squawk box" on cnbc. we're live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. the dow coming off a 113 point loss in yesterday's session dragged lower by goldman sachs which reported weaker than first quarter reports on the top and bottom lines. u.s. equity futures this morning are hanging in there. even though we saw some additional weakness that was brought on by shares of ibm. the loss for ibm alone would drag the dow down 55 points. futures are indicated up, though, by 15 points. so you're talking about a 70-point advance from the rest of the dow without ibm. s&p 500 up by 6.5, a