good morning. breaking news. it is official. macron and le pen will face off in a race that could determine the future of the european union. we are life on the ground in paris straight ahead. stocks soar. global equities go higher. as ma kron pulls in most votes. we'll have the latest. two stops on the move market. it's monday, april 24th, 2017. and "worldwide exchange" begins right now. ♪ ♪ staying in paris good morning.

happy monday. welcome to "worldwide exchange." i'm sara eisen. >> good morning. >> good morning. >> wilfred is off. covering the french elections once again from paris this morning, markets on the move, we'll get to him in just a moment. there he is. let's first check on the global markets this morning. a celebration of the results of the french election, we saw that right away in the euro which trades first on a sunday. but there is the reaction of u.s. equity futures. a more than 200-point rise in futures. 212 points higher at this early hour. s&p futures up 28. nasdaq up 60. this has ripple effects all over the world. risk taking back on. let's show you the ten-year treasury note yield. 24 hour look at this. you really saw the jump after the market started opening on the results of the french election.

we will get it for you. there's the ten-year note yield. there you can see selling of the bondses. yields jump eed 230. the biggest reaction has to be in the currency. we saw it in the euro against the dollar. versus the safe haven yen. jumped to a five-month high. highest level since november. past 109 at one point. clearly there's some fear and trepidation going into the results. and this, according to overnight, the most perfect market scenario. even though le pen is going to be one of the front-runners going into the election. the other three the assumption is in the polls will move towards macron, the more centrist. >> something like 20 points. it's interesting all of those unexpected reaction to the results, brexit and the result,

the expected result and the expected reaction. if you look around the world, a global lease of tension. take a look at asia. it has actually helped a little less. you have a weaker yen, japanese nikkei up 1.4%. hang seng up a little less. shanghai, there's been a crackdown on speculative leverage and things in china. we'll talk about later. that's down 1.3. look at europe, obviously, that is right where it all started. so, then you have almost geographically perfect, right? the biggest gains led by the french banks. european banks doing well. and then germany the more distant markets up as well. and then sara, as a 1% gain in the index. >> i think we should zoom in on the french banks if we could. we are seeing sizable move. the cac up more than 4%. those banks are soaring this morning. they were on the front lines ahead of this risky event. look at the french banks moving

to the tune of 8, 9, 10%. le pen getting a similar vote there and the assumption is the banks are free. >> the euro is safe and the bank, free. as for the broader market picture, let's show you a commodity check and oil prices. that took crude back to the $50 a barrel mark. we're still hovering around that. keep an eye on crude. it is up almost 1%. 50.06. and brent up as well. we'll show you the currency boards overall. keep in mind, the euro is the big dominant mover of the morning. there's the euro versus the dollar, despite overnight, 109. we are still sitting at a 1.2% advance. and also sustaining a bit, pretty flat against the u.s. dollar. gold prices sold off on this idea that risk taking is back

on, as i mentioned. there's the dollar/yen. also positive for treasury field overall. so, let's get all of the details you need to know behind the market moves. wilfred in paris. results are in, wilfred. what you can tell us this morning? >> reporter: good morning, guys. great to hear from you. as you say, results are in, polls are right, macron and le pen ahead. devastating result for the two main political parties in france that came third and fifth respectively. the first time in 60 years that those two parties won't be contesting the second round runup. either way, whatever the result of the 6th of may runup, this is a wake-up call for the political elite across all of europe. and don't forget, lots of elections to come in the months in the european continent. a close third and fourth.

as you say the markets are rallying. why are they rallying? here's why the polls got round one right and they are predicting a strong 56 forefor emmanuel macron. the second, fillon was quick to endorse macron. and le pen did not win first round, she only came in. it's worth that jean luke m-luk melenchon has not endorsed le pen. how has she going to go through the second round? she's calling on all patriots. she's also labeling macron as the heir to the unpopular president francois hollande and she's framed on unbridled globalization which she said is threatening french civilization.

all in all, her task is tough. highlighted by how quickly we saw severe protests breakout against it here's the videos in paris. those who did not vote for marine le pen. the bottom line, as you've already pointed out, though, markets polls all point to a strong macron victory on the 6th of may. >> so, wilfred, what's the path from here? do the two campaign? all of the stories this morning are focusing on the fact that these two are going to paint very different pictures of france and of the eu. and it's going to be a major decision. what do we watch from here? >> reporter: absolutely. and, yes, they do campaign from here. they hit the campaign trail fresh again this morning. let's just have a look. because the key's going to be how much turnout do the two big third and fourth place supporters go to either candidate. let's have a quick look at jean-luc melenchon.

he's the far right. he got 20% roughly. he has a shared opinion with le pen voters on a sense of protest against the political elite and globalization and dissatisfaction with the eu. but his voters will also align with macron, the open-minded view on immigration and society. switch focus. what is the task now for fillon voters who also got 20%. they'll share a view on le pen on a view of immigration and security. but they'll share a view with macron on the embrace of free trade and free markets. but it's very clear here this isn't a simple division. it's not a simple choice in round two. and that's why there's perhaps a little sense of complacency on the ground with the way the markets have reacted, albeit probably a legitimate complacency. >> wilfred, a lot more from you in paris. but for now, thank you. another geopolitical story

to tell you about, north korea warning over the weekend it's ready to sink a u.s. aircraft carrier headed to the region. in a phone call, china's president xi telling both the u.s. and north korea he's hoping they show restraint. a korean-american u.s. citizen has been detained by north korea. and in washington, all 15 points of the u.n. security council will be meeting with president trump at the white house. this is an unusual, if not unprecedented gathering. north korea is expected to be high on the agenda. and it is a busy agenda in washington. this is clearly front and center. but they also have to figure out how to get the government to stay open ahead of this week, the friday deadline. they're expecting a blueprint by wednesday and talking about obamacare. >> and that 100 day mark -- >> which is saturday? >> -- saturday. >> which would be the first day

that the government would be shut down? >> yeah, all comes together neatly. we're back to wall street. with a dozen dow components 178 s&p 500 companies reporting. among the names to watch, 3m, boeing, pepsi, mcdonald's ford, procter & gamble, and the big names, amazon, microsoft all reporting. on economic front, we'll get the case-shiller home index. and new homes. and thursday, jobless claims and durable goods. and friday, first quarter sentiment. >> i think that friday number, that 1% range number? >> it's trending down towards 1%. now the fed is well below 1%. >> the question is can we get a rebound like we've seen in recent years. stanley fisher is telling me the fed is expecting yes. today's top corporate news a

mega deal between two medical supply makers. both stocks on the move. landon dowdy joins us. medical supplies manufacturer becton dickinson announced it will acquire c.r. bard in a cash and stock deal. the acquisition is valued at $317 a share that's more than a 25% premium to bard's closing price on friday. bekts becton said it will help to improve medication management. and becton hopes to result in a cost savings of $300 million a year by 2020. now, this is just the latest deal in the medical supply space. and for becton, just two years ago, the company acquired hair fusion for $12 billion. take a look at the stocks becton and bard a little changed. bek becton down o.56, guys.

>> landon, a busy space in terms of m and a, and nice premium for bard. thank you very much. coming up, french stocks surging as global markets cheer the result of the french election. u.s. equities up about 1% indicated now. stay tuned. you're watching "worldwide exchange" on cnbc. she can't become a guitar legend just by playing air guitar. the baby's room won't build itself. and her paw won't heal on its own. we're all working forward to something. synchrony 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, synchrony financial can help you get there.

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welcome back to "worldwide exchange." let's have a look at the euro chart which is about 1.086. you see big jump after the results came last night, macron and le pen. let's discuss further. i'm joined by the "financial times" paris bureau chief. good morning to you. >> good morning. >> thank you very much for joining us. before we even get to how the second round runoff will play out, how ground breaking results was this election last night? >> it was groundbreaking because the two front-runners are going to make it to the runoff. and our political outsiders, they're not coming from established parties, that have -- and you have macron who is not even known to the public a few years ago who is a se centrist. and the leader coming from the

fringe of the political -- the french political space. >> the way the markets have reacted this morning it points very strongly to the confidence of emmanuel macron in the second round. is there a chance that the reaction is overstated there with offconfidence there? >> no i think we can now safely assume there will be enough voters rallying around emmanuel macron to bar marine le pen from reaching power which is what we call in france the anti-fm republican france. so, the center right and center left voters, very soon, voters will rally about the mentioned candidates. so that's going to happen. i think we can be fair in that. >> the far left candidate, 9% left, 9% right. he has not come out to endorse macron. >> that's been a big

uncertainty, melenchon votes they view macron as representative of the elites. it's going to be interesting to see hows are going to react. some will say, that -- and the others are going to go for marine le pen. but i don't think it's going to sway the election too much. >> marine le pen is going to try to paint this as a fight on globalization, as opposed to eu or immigration. can that work for them? >> yes. that's the binary choice that the french voters will face, are facing. it's almost too binary. we have marine le pen who represents protectionists and nationalists of the world. you know, she wants to crack down on immigration. she has a tough stance on islam. and macron is, you know,

representative of the elite. s. you know, coming from this area, he's been groomed in the best tools and he was an investment banker. and he's advocating for an open economy. so, yeah, in a way, it's a very scary face-off. because it resembles, you know, the election in the u.s. and in the brexit plan. >> thank you very much for joining us. a pleasure to have you with us. the paris bureau chief for "the financial times." sara, mike, back to you. >> the binary choice for the french voters, thank you. a quick check on futures. this is leading to a big rally for u.s. stocks in the early market. futures up more than 200 points. s&p up 29. nasdaq up 58. starting the week on a very strong note. coming up a big week ahead in washington as well. president trump promising a tough package while negotiating

keeping the government running. we take you to the capitol for a live report next. first before we head to break, here's today's national weather forecast from nbc's bill karins. >> good morning, sara, mike and wilfred. the big story over this portion of the week is going to be the heavy rain and then coming up the east coast. a lot of trafaut ot of travel d potential for flooding. 16 million in risk of flooding in the carolinas, portions of virginia, too. slow-moving thunderstorms. 3 to 5 inches of rain locally. up to 8 inches of rain. we start with the rain today, areas of virginia, north carolina, south carolina. that blue and red, that's up to 3 to 5 inches of rain. serious blooding possible from wilmington, fayetteville down to myrtle beach. then on tuesday, that will spread up the eastern seaboard. expect a lot of rain potential in d.c., new york and boston. that's your business travels forecast. more "worldwide exchange" when we come back.

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welcome back to "worldwide exchange." and good morning. let's get you up to speed on the market action which is very positive this morning. the reaction globally to the results of the french election. we now know that marine le pen will face offer with emmanuel macron may 7th. that is seen as market friendly. that macron is now leading the polls by 20 points to win that election. dow futures jumped 215 points. s&p jumped 30. nasdaq futures jumped 59.

it all started with the first reaction in the euro spiking, dropping higher, highest level since november against the dollar. the results started coming in yesterday afternoon. there it is, very market friendly. you can see it in the french market as well. the cac up more than 4%. that in part, is being driven by the banks strong this morning. the french banking surging 7%, 8%, 9%, mike. >> sara, thank you. congress returns with just days left to avoid a government deal of a shutdown. while president trump is looking for a deal on taxes ahead of his 100th day in washington. the latest ahead of a very busy week. >> mike, this is shaping up to be a pivotal week both for the white house and capitol hill. more than 100 staffers at the treasury department all working under the administration's tax plan. they're getting ready for the big reveal that the president has said will come on wednesday. still, officials tell me that it

will be a raw set of principles and priorities, not a detailed policy documents. after sunday night, key lawmakers have not yet seen a draft of the tax plan. and no word on whether they'll weigh in on the border adjustment tax. but secretary steven mnuchin on saturday was adamant that this plan would pay for itself. >> the impact to growth is staggering. the compounding effect of growth is really important. so there's no question, we're looking at reforms that will pay for themselves. with growth. >> lawmakers and even some treasury staffers were surprised by the president's timing on this. right now, the focus on capitol hill is on preventing a government shutdown. and the big sticking point is funding for the border wall. democrats won't pay for it but on "meet the press," white house chief of staff reince priebus yesterday appeared to give the administration some wiggle room

that money simply planning the wall could pass muster. the official plan is friday, guys. don't be surprised if lawmakers punt this into next week. >> yeah. of course, they've done that in the past. what is now the sense on little? in terms resetivity for undertaking a tax plan? as you said it's a broad statement of principle from the white house? >> there's just not time in order to take on that type of heavy lift. we'll be lucky if we see this by sometime in the fall. really right now, the order is government shutdown. keep the government open. perhaps it turning to health care in the springtime. and then maybe once that's done. they can turn back the taxes in the fall. but right now, it's just the president sort of outlining potentially what he thinks he wants to see in any type of package. >> and is the sticking point there, the border wall? >> the sticking point in tax reform package? >> no, in keeping the government open? >> yes, the sticking point there is the border wall.

the administration says they want money to pay for a border wall in a spending bill. democrats say no way, they're not funding that border wall. and that the administration has held is funding for insureds who cover low-income household that is acquired under the affordable care act. democrats are saying the administration shouldn't be holding that hostage because that's something due to the consumes anyway. >> thank you. for a run down on what to expect from a busy week. if they can't come up with a deal, is that going to move the markets? >> i think the markets are used toe having this kicked down the road. >> the question is what of tax reform and infrastructure? >> exactly. in another washington news, president trump is also expected to sign several executive orders on friday on energy and the environment. a white house official telling nbc news the orders will make it easier for the u.s. to develop energy sites both on and

offshore. on saturday, the president tweeted, quote, i am committed to keeping our airline and water clean but always remember economic growth enhances environmental protection. jobs matter. a window into his thinking on all of that. when we come back, details on this morning's global market rally following the french presidential election. we take you back to wilfred in paris. wilfred. >> absolutely right, sara. as you say, markets you've forric on the back of those results. early sense of relief here in paris and perhaps a little complacency. we'll explore more and possibility of that factor and what to expect in the second round. when "worldwide exchange" returns live from france. ♪

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getscreenednow.org it only takes a minute to take care of yourself, and nothing rhymes with "org"... good morning, global market alert. u.s. futures rallying hard as investors cheer results of the first round of the french presidential election. we are live in the ground in paris. china tumbles. the shanghai composite having its worst day of the year. we'll tell what you sparked that big slack. and as uber secretly been tracking you? explosive allegations out today. it's april 24th, 2017 and you're watching "worldwide exchange" on cnbc. ♪ good morning, welcome back to "worldwide exchange" on cnbc.

i'm sara eisen along with mike today. we're covering the french election from paris. it is the top story and stocks are surging around the world. we'll get to wilfred in a moment. let's show you what's happening with global markets this morning. starting off the week on a very strong footing. a global celebration reaction to the french election results. you see it in the u.s. stock, dow futures surging 218 points. s&p future surging almost 30 points. nasdaq futures surging 59 points. as for the overnight action in asia, fairly positive in places like japan where the safety of the yen weakened. a lot less demand for safety this morning. you see that in treasuries, the yen and gold all selling off. that helped the nikkei surge 1.4%. shanghai was an interesting exception. the shanghai composite having the worst day of the year after chinese regulators said they would tolerate more market volatility as they clamped down

on speculative trading. look at the reaction. will you notice the big strength from france itself. the cac up 2.4%. some of the banks in france are surging as much as 10%. really a strong reaction. look at italy as well. that was considered another domino to watch, in case the french election results went far left and far right. that was the ugly scenario for the markets. it did not go that way, italy surging 4%. >> these markets are not that far from the high. it's not as if they've been depressed. they actually have been relatively strong. this was actually a little bit removal from one big uncertainty. >> and also, a lot of people said this reaction was priced in because they were expecting it there is clearly some trepidation, we saw that in the french bond market leading up to this. a big sigh of relief. >> for sure. even in the u.s. there ways lot of edging, the market was kind

of stuck in the middle of its change since march 1st. now we're seeing about a 1% move. the broader markets now, though, oil looks like it's trying to hold in there right around that $50 range. it had basically had that big two-week spike up in the mid-50s. and now bouncing a little bit there. ten-year note is probably very key. really almost anything that got the ten-year note yield rising about 3.2% as it has done here. probably going to be friendly for stocks and u.s. banks the cyclicals have been missing in the last six to eight weeks as you had the growth in nasdaq. not the cyclicals. there you see the ten-year note yield. then gold is going to be the victim here when you have removal of uncertainty. did not quite get to $1300 an ounce on its latest rally attempt. and backing offer 1.25%.

>> the litmus test have to be the euro against the dollar which shot up, sunday afternoon, to a five-month high past 1.09. the u.s. currency looks to stay together if macron can pull out a victory on may 7th. the other factor, the french banks it could spill over and be good for u.s. banks. also higher treasury yield. here's the reaction in france. associa soes societe generale up. candidates face-off in a runoff. from paris, wilfred, what you can tell us as you watch the market reaction to gather the color on the ground, how do you make sense of it all?

>> well, you just mentioned the first and second place percentages, so close behind them was the third and fourth. right field, 20% far left, melenchon, 20%. why is the market rallying? as we said before, it's because of this belief that the center ground of politics will unite and vote against le pen. anything but marine le pen is the phrase that's here in france. let's get some history why the market and people are confident that will happen. 2002 is the last and not only time that the national front made it to a runoff vote. that was jean marie le pen. marine le pen's father. he faced off against jacques chirac. 82%, and le pen, 18%. that's why the market is

confident something similar will happen this time. but in the first round, turnout was low, 71%. and this time, 82%. and jean marie le pen got 16%. marine le pen's chances are better than her father's in 2002. and there are important runoff differences. most notably, le pen is far right. macron is center left. and a big party with a big base, lots of support. buckling together various coalitions. and macron is an independent. he has his 23% so far. but can he grab other coalitions? clearly, the market is taking confidence from that, expecting various other parties to vote for macron. but jean-luc melenchon has not endorsed macron. mr. fillon has.

last night, i was at his campaign headquarters. and i asked some voters who they would now vote for, given that their candidate, mr. fillon is not there? >> well, tonight, i will probably not vote at all. in two weeks. >> i am going to vote for macron in two weeks because i don't want le pen to be president. >> i will vote for emmanuel macron. for many reasons. i think marine le pen is elected it will be a catastrophe for france. >> i'm not quite sure who i'm going to vote for yet but i think macron. >> most fillon supporters said they'll vote, but turnout will be absolutely key may 7th. >> wilfred, clearly investors are taking the bet that ma kron will win the election. you see that in the polls. you can go through some of his economic policies which stand in such stark contrast to marine le

pen. his vision for france. within the e u. it's still a country with 10% unemployment. a very high unemployment rate. >> you hit it absolutely on the head there. what's interesting about his economic policies are center ground. and possibly you'd say, as france goes, slightly to the right. he's pro-free trade. he's pro-globalization. when he was economy minister for socialist francois hollande, he was seen making reforms to the center. didn't like because they were too right-leaning. marine le pen, she's far right on immigration. on the scompheconomy, kind of l leaning. you mentioned unemployment, 10% here in france. 23% youth unemployment. jean-luc melenchon, the far left did well where unemployment is high. as did marine le pen in the northeast of the country.

that is the similarity between the fact of bernie sanders and trudonald trumj. trumtrump, no him to win those high unemployment states and yet he did. there's still uncertainties out there. >> wilfred, we'll check back with you in just a bit until paris. we've got a deal to tell you about, medical supply manufacturer becton dickinson announced will acquire bard for $24 billion in a cash and stock deal valuing bard at $317 a share. more than a 25% premium to bard's closing price on friday. >> yeah, that deal alone might have given a positive tone to the market. >> because it's such a high premium? >> high premium, a space that's really heating up for m & a. i think so in general, people like the idea that bigger companies looking to buy growth. we'll see if that translates to the close. back to the broader markets, financials have been on a wide ride since the u.s. election the overall sector up, and let's get

to cnbc's landon dowdy for a look at winners and losers among financial stocks. >> hey, guy, in the past 12 months, the financial sector up 21%. however, as the trump rally fades a different story with financials negative, down about 0.5% compared to the overall s&p's 5% gain. there are some bright spots. s&p global and moody's both soaring more than 22%. capital markets tells me that both stokes fell shortly after the election on concerns that trump's policies would reduce the need for debt ratings. but the stocks are getting a boost because they're debt issuing businesses aren't doing well. and up about 15% and pointing to a strong balance sheet with hopes from deregulation from the trump administration. as for the losers, goldman sachs taking the most. down nearly 10%. this after the stock fell to its

lowest level in nearly five months last week on disappointing earnings due to a drop in quarterly trading revenue. regional bank down 1.8%. back to you. >> landon, thank very much. uber meanwhile is the subject of yet another not so rosy head line. "the new york times" reporting the company secretly tracked iphone users even after the users deleted the apps from their phone. according to the "times," tim cook learned about it and threatened to ban uber from the app store. uber came back saying it's used to track accounts. >> i think when you get called to the office and said stop doing something implies it's not an industry practice. >> i guess they did flag it -- >> well, actually, the story suggested that uber went to some length to try to conceal the fact that they were doing this.

coming up, the results of this weekend's french election playing out in the french papers. we will take you to paris for the front pages ahead. as we head to that break, another look in the futures. see it building at the highs of the overnight. s&p up 25. a little better than 1% move across the world. "worldwide exchange" will be right back.

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if you're just waking up, let's get you up to date on the market action. actually, a pretty good rally in the making here. we see the futures for the dow, the s&p and nasdaq all up 1% following those results of the french election, basically removing a little bit of uncertainty over there. the s&p for what it's worth, looking to open around 2373. we'll see if the market can challenge those higher levels. the all-time high, closing high about 2395 for the s&p. but nasdaq has been the leader looking like maybe it will get to 5500 on the futures base. that's nasdaq 100. looking at the euro, that's where the enthusiasm was sparked on the french election. you see that very sudden pop as soon as those election results came out. that, again is part of that sort of global release of tension that we're seeing sweep across markets around the world.

>> yeah, president trump getting his weaker dollar. mike santoli, thanks. back to paris. we're doing fun pages with wilfred in paris today. >> hi, sara, yes, indeed. the extraordinary thing of all of the front pages is the unity with who they feature on the front page. the parisienne says macron. now the front-runner for the french presidency, similar, a full-page picture of mr. macron, on the bottom, the subtitle says "the appeals in order to block the national front are multiplying." of course, the story overnight, why markets are rallying so clearly because they believe there will be unity amongst all the non-le pen voters. another paper leads with a big picture of mr. macron. saying mr. macron leads in front of le pen as we head into the

final round. only the right ring, le figaro has a balanced photograph on the front page of the two front-runners. it's titled underneath saying the right is k.o.'d. of course, it refers to the traditional center ground right. as you said, mike, the reaction, the euro, the banks seeing the most, surging up 10%. not so much about the fear that you mentioned earlier about jean-luc melenchon getting in. but just that belief that we won't have le pen until government threatening france's place in the eurozone. >> yeah, it would have been a difficult scenario for the market if it was le pen and melenchon finishing as the two candidates. wilfred, thank you. coming up, we get you ready for the trading day ahead. france, quick data. tom lee joins us from fundstrat global advisers.

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u.s. stock futures are in rally mode this morning. investors liking the outcome of the first round of the french presidential election. dow futures jumped 215 points, tom lee is with us, ahead of research add fundstrat global advisers. talk to us about u.s. stocks on what we saw in france? >> well, as you know, i think investors were pretty nervous last week. i think we should expect in relief rally. i know you were asking whether or not we should change our view. i don't think this really changes the risk reward to equities. we look back at brexit, the market's pe was close to 16. you talk about do you get paid for buying stocks here, even if you're relieved that there's no

french exit. i think it's tough. >> expensive market, even though it sat still for the last couple of months, the s&p 500, you've had a lot of changes. the big growth stocks doing well. the cyclical volume stuff not doing well. is there anything that would lead you to think that that dynamic might shift at all? >> yes. i saw your piece over the weekend. it's been a really concentrated market. you know, ten stockings are carrying more than half the points gains this year. like 85%, pretty much the entire point gain. and it's been defensive. it's really a defensive group. i think it's time for some of the cyclical stocks which have gotten really cheap which have benefitted from the weaker dollar, it should be still be the overweight thing more in the earning growth, but to look at old tech, the resource sector, the banks which have not been great and even things

benefitting from net neutrality which is phone sector, i think banks could be the term here. >> tom, we're going to talk about stocks in a minute. but with less than ten minutes until "squawk box" we want to get to see what the team is monitoring. >> good morning, we are continuing to watch the market reaction, of course what's happening with france. we have julian tech in the financial times. and the administrator from italy who is going to be on. we'll talk about taxing and what the taxes that the president may be proposing. we'll have a conversation about that. and then we're going to talk to adam grant. the professor from wharton. and dave sandberg, a former friend of mine, sarah sandberg's husband. and you're not going to miss an

interview with the lawyer who was working from the doctor that was taken from that plane. the united airlines plane that we've been talking about for the past couple weeks. so, that's what's on tap this morning. >> yeah, i remember his news conference watching united stock taking the hit. andrew, we'll see you in a few moments. we're back here with tom lee, talking about the impact on stock. we've got a few heavyweights this week. p & g, the dow components and big techs like amazon and microsoft. >> yes, i think earning are always a pretty good news story. we still have the view that we're going to cycle the expansion and i think finally profits are turning a profit recession last year. but, you know, i think for us, the reason we're not embracing a lot of this more strongly i think risk reward is still an issue for us, valuation. >> you know what you're going to hear today, tom which is, yeah,

sure, stocks are expensive, but nothing's been able to get this market to go down and stay down. and it shows some kind of resilience. but there's nothing you can look at in the next few months that's going to be a scary thing, right? what would be your reaction to that attitude that says, hey, we dodged a bullet here? >> you know, it's better to have -- i think it's easier to make a case when you have a lot of things that we worry about that are visible and obvious. you're right, it's hard to say there's 25 ticket things that are going to cause the market to fall. >> we were speaking earlier about the fact that republicans have to gather a bill by friday. otherwise the government will shut down. is there a market indication of that story? >> you know, event risk like around governments, i think, you know, have short-term implications. like we saw with the french election but it really changes sort of the long-term trajectory of stocks. yes, i think it's a source of noise.

>> noise? >> yes. >> we have had shutdowns before. we've actually had the whole debt ceiling thing before. do you think that the market right now is pricing in any much policy progress for the rest of the year? >> you know, it's probably best explanation for why the market's pe is where it is, right? it's that investors are baking in tax reform or stimulus, or health care reform. i think to an extent, a lot of good is priced in. >> we'll see what we get wednesday, tom lee, nice to check in with you on a monday morning. fundstat global advisers, the last minutes left we want to go back to wilfred in paris. final thoughts, what you're watching today, wilfred. >> yeah, i just wanted to say regardless of what happens in this vote, i wanted to stress the extraordinary result here. that neither of the two main parties are competing in a presidential race for the first

time in 60 years and yet, european assets, risk assets across the board are rallying. not just french assets, the italian and bund spread has tightened 20 basis points. we still have elections to come in italy in the next months. elections in germany and greece, have a lot of problems. issues from it are far from sorted even if mr. macron succeeds. >> what are you watching today? >> today, i think it's going to be the reaction to this little opening pop. i really want to see the market close this way. europe did not sell off in advance of this very much. >> banks especially? >> yes, banks and cyclical stocks. >> watch the euro, it's leading the charge. 105 against the dollar 109. wilfred, we'll see when you you come home. mike, thank you for being here.

>> all right. >> next is "worldwide exchange." it's great to finally meet you. your parents have been talking about you for years. they're all about me saving for a house, or starting a college fund for my son. actually, i want to know what you're thinking. knowing that the most important goals are yours. it's how edward jones makes sense of investing.

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good morning. french voters giving investors what they expected. global stocks in the euro surging this morning. a full market rundown is straight ahead. and we'll call this merging monday. a pretty good deal. longtime medical suppliers getting together, bekts becton dickinson buying bard. yeah, that's c.r. bard. and a big week in washington. congress returns to try to avoid a government shutdown. president trump meanwhile

pledging new details on tax reform. and repealing obamacare, i don't know. monday, may 24th, 2017. "squawk box" begins right now. >> announcer: welcome back, you're watching "squawk box," live from the nasdaq market site in times square. ♪ good morning, everybody. welcome to "squawk box" here on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with joe kernin and andrew ross sorkin. we have the prince national anthem playing. let's take a look at equity futures. things have been markedly higher after the results of the french election came in. it was not a deviation from what was anticipated, but we have some elections that have surprised people with the uk brexit vote and other things. the worst case scenario, according to what market participants have been watching. do not have a far right