good morning. big business sounds off as president trump says good-bye to the paris climate accord. a record run. stocks trading at all-time highs. will today's employment report fuel the rally? lululemon bucking the retail trend. shares soaring after they beat the street's estimates. it's friday, june 2, 2017, "worldwide exchange" begins now. ♪ good morning. happy friday. welcome to "worldwide exchange" on cnbc. i'm sara eisen. >> i'm wilfred frost. happy friday to you from me as

well. new music friday as well 6. we are listening to fifth harmony's new song called "down." >> you looked at the prompter for that. you didn't know that. >> did you? she literally just arrived. >> they closed the bridge. >> you can't get your makeup done in six minutes. u.s. equity futures after a trifecta of a record close. s&p, dow and nasdaq finishing at record highs yesterday. the strength continues this morning. dow futures are up more than 50 points. nasdaq futures up 20. s&p futures are up 5 points. >> russell didn't have a record close? >> i don't think so. russell has been lagging a bit. >> that would have been quadfecta. >> i think it was quartet. didn't we agree on that? >> let's show you where oil prices stand. part of the story. we did see a rebound yesterday

in the trade. wti down 2%. wti at 47.33. brent down as well. 49.57. >> the interesting thing on oil, obvious that this would react in that way, permitting more supply to come on from the frackers, does this allow more demand for the fossil fuel -- >> or projects which may have been limited. >> it's reacted in terms of it boosts supply rather than demand, either way, i think the moves are small. 2% or so for what was the groundbreaking climate change deal of our time. biggest energy consuming -- >> even energy ceos wanted to keep the u.s. in the deal, have a seat at the table and a leadership position. asian equities in the headlines today. the bank of japan hitting a new

milestone. its balance sheet topped 500 trillion yen, tripling since the boj started its aggressive stimulus back in 2013. roughly the same size of the balance sheet of the fed now. either way, decent moves in asian markets. japan is a heavy consumer of s of fossil fuels. for the week as a whole, we're flat coming to this, german dax up a little, france is down a little. but physicifinishing on a posit note. some of those german automakers doing well on the back of the paris climate accord. also auto sales numbers yesterday. we don't want to overplay the paris influence, but volkswagen, daimler up about 1.2%. >> nikkei above 20,000. broader market picture, ten-year

treasury note yield ahead of the jobs report, 2.21. it take ace lot to move treasuries higher. even that better adp report, 253,000 added, didn't get much of a move in treasuries. as for the u.s. dollar, it did have a boost yesterday on the back of that better news. again like treasuries, it's taking a lot. dollar firmer against the yen, 1.1155. it is weaker against the euro at 1.122. the pound 1.2853. gold prices on the back of a mixed picture on the u.s. dollar. gold down about half a percent. >> on the dollar, for the week as a hole down 0.2%. still negative but pausing from its recent slide. for the month of may, down 2%. this week, down 0.2%. >> the big question for the markets is what's fueling this leg up from already record levels? can it sustain itself enough to have confidence to bring buyers

back? jim cramer on "mad money," he's been giving us shout-outs on squa squawk on the street, he calls us swilf, but he says the ledge lative le i legislative logjam needs to clear. so we're asking on all of this, including the backing off of the paris climate reform, what does this mean for tax reform abecaue this is something he cannot unilaterally do. >> let's get an answer on whether he can unilaterally or not, the world reacting to president trump's decision to pull america out of the paris climate agreement. eamon javers joins us from washington. good morning. >> the president said his decision was about protecting american sovereignty and putting american workers first ahead of foreign leaders.

he said ultimately this was about the people who elected him. here's what he said yesterday. >> i was elected to represent the citizens of pittsburgh, not paris. i promised i would exit or renegotiate any deal which fails to serve america's interests. the process has begun from day one. but now we're down to business. >> the president also said that simply other nations had gotten the better of the united states in the original negotiations surrounding the paris accord, that they weren't subject to the same onerous treatment that the united states was, and ultimately he said this was about getting a measure of respect. >> at what point do they start laughing at us as a country? we want fair treatment for its citizens, we want fair treatment

for our taxpayers. we don't want other leaders and other countries laughing at us anymore. and they won't be. >> other people laughing at you is one of the worst things that can happen in trump's rhetoric. he viewed this paris accord in vain with other areas where the united states has been taken advantage of in the world stage. a couple key nuance points were laid out for us after the president spoke yesterday, including the fact that the united states will not be able to get out officially of this deal until 2020. it has to be in place for three years before you can begin the withdrawal process. that takes a full year. when will we be out of this agreement according to the trump administration? november of 2020. as you know, there is an election that year, so this will take a while. in the mean titime they say the white house will not enforce any of the conditions of the paris

accord. >> even still what a signal that the trump administration sent. just want to take a moment and pause with you here to talk about the strong business reaction that we have seen already. ge's ceo reporting i'm disappointed with today's decision on the paris agreement. climate change is real. industry must now lead and not depend on government. lloyd blankfein sent his first tweet ever. he tweeted today's decision is a setback for the environment and for the u.s.'s leadership position in the world. apple's ceo tim cook writing a letter to employees saying he's disappointed with the white house's decision. disney's ceo bob iger and tesla's ceo elon musk saying they're leaving the president's advisory council. nike also expressing disappointment. this was the president that campaigned and even as president his whole mantra has been we'll make the u.s. competitive again,

create american jobs, and make business hire and manufacture in this country. will this ab sbe a setback for ? >> he surrounded himself by ceos. we've seen ceos trooping in in groups of a dozen or more throughout the past year, this will be something that divides the president. a couple members of his own bizzbiz bizzen business advisory councils are resigning from those position. we'll see today if others follow suit. this is a crack in the relationship between the trump administration and the business community. i had a chance to ask steve enough been this yesterday. i pulled him aside in the rose garden after the president spoke. we saw this cavalcade of tweets from the business community coming in in opposition to the president's action. i asked steve mnuchin what his

message was to those ceos. he said the president is focused on the environment. this is not about the environment this is about creating a fair economic deal and making sure if we're making commitments other people are making commensurate commitments. so the treasury secretary's message to the corporate community is that this is an economic deal and we're trying to get a better deal. >> of course the way the treasury secretary framed it is not the way it's been taken by leaders around the western world, particularly in europe. you say the president alienated himself from the business community, has he really broken ties now with european leaders? >> they don't feel that way at the white house. the president did call a number of european leaders after the announcement in order to explain the decision personally to them over the phone. white house officials briefing us just after the announcement said that they are confident that european allies in

particular but also other nations around the world will come back to the bargaining table and sit down again with the united states to renegotiate this deal, even though we saw a statement from three nations saying they would not do that, and that was an irrevocable deal. u.s. officials at the white house say when it comes down to it, those country also come back to the table. >> well worth president macron's speech on twitter saying make our planet great again, a firm response from him. just before we let you go, white house appealing i travel ban to the supreme court. what can you tell us about that? >> that was probably inevitable at some point. we'll see where the decision goes. the white house has been extraordinarily frustrated with this travel ban, in large part because the courts interpreted it and said it is fair to look at the president's rhetoric about banning all muslims from the united states as part of the context of his decision to go ahead with this travel ban. we'll see whether the supreme court views it the same way.

>> eamon, we'll ask the question we always ask after this bombshell from washington, what does it mean for tax reform? >> tax reform is struggling. at the white house they say they're moving forward, negotiating up on capitol hill. you heard the president touting his tax reform bill as being successfully moving along. of course there is no bill as of right now. so we'll see whether they can cut a deal. despite this, republicans on the hill still have a vested interest in a tax deal this year. they have the majority. you have to bet it happens, but boy is it taking a long time. the august dead loin thinedeadlr the themselves is clearly not going to happen. >> eamon, thank you. eamon javers kicking off the hour with us. to earnings news, a bright spot in retail. shares of lululemon jumping after the athleisure company

reported better than expected earnings. better comp store sales, revenues and gross margins. they raised their full-year profit forecast. you know i've been following this one for a while. i think the key with why there was so much relief in the stock, and jim tweeted this as well, a lot of shorts. this is always an emotional reaction. the last quarter it went double digits the other way. started off slow, it was a big surprise to the downside. the ceo said, look, we didn't have enough colors in the store. i'm not sure wall street and investors believed him until yesterday. they posted the better results. i talked to him last night, he said we know what we needed to do. we didn't blame the macro environment, we blamed ourselves, we put this new assortment back in the stores t had faster results than we expected and to a larger extent. the revamping of the online selection, which they did, and they continue to see that

portion of the business growing. >> so, given that, this is less good news for other athleisure brands than it could have been. more stock specific. >> what he would say to that is for them the retail environment has not changed. people want their product, they want to live a healthier lifestyle. he also would say why he's doing better than the knicks and wrund armor under armours of the world. they're wholesalers, they supply to department stores. so they're vulnerable to weakness in retail. lulu does it in its own stores, own direct consumer, own websites. remember that outage they had on the website? 20 hours down, which some analysts were worried about. had a chance to talk to him about that. he blamed ibm. he said ask ibm. that's where they have their server data. he said he was on the phone with ginni rometty, the ceo. he is looking at options now, clearly not satisfied with that.

>> unusual they called ibm out by name. restoration hardware's latest earnings matching forecast, revenues topped estimates. shares are down more than 20% after cutting its full-year profit outlook. the chain, which is moving to a membership model, says it will try to liquidate inventory for cash, which will boost revenue but hurt profits. zumiez is reporting a narrower first quarter loss, shares are down as the teen retailer is forecasting a wider loss in the second quarter. zumi stock lost a third of its value this year. down 9%. remember that massive british airways outage last weekend that left 75,000 people stranded? >> don't tell me it's about to start again. i'm flying them today. >> it's always about you. we may know now what went wrong. the details on all those other people that were affected, will

frid willfred won't be. stay tuned. you're watching "worldwide exchange." they're experts in things you haven't heard of. researchers of technologies that one day you will. some call them the best of the best. some call them veterans. we call them our team.

the future isn't silver suits anit's right now.s, think about it. we can push buttons and make cars appear out of thin air. find love anywhere. he's cute. and buy things from, well, everywhere. how? because our phones have evolved. so isn't it time our networks did too? introducing america's largest, most reliable 4g lte combined with the most wifi hotspots. it's a new kind of network. xfinity mobile. some stocks to watch. shares of vm ware slipping. the software company reported a decline in software. workday's quarterly results topping estimates. the company also raising subscription sales guidance for the year.

broadcom reporting revenue and profit that topped analysts expectations. this revenue expected to grow higher. up h4%. >> five below posting better than expected earnings, and a bullish outlook for the rest of the year. yext seeing revenue jump 37% from this time last year. the massive computer outage that forced british airways to cancel dozens of nights last weekend was reportedly caused by a contractor doing maintenance work. the person inadvertently switched off the power supply at one of the data centers. the investigation will focus on human error rather than equipment failure. >> wow. amazing that one person can have such a devastating impact. >> human error. >> and that's up 1. % today.

president putin set to take the stage with global leaders in st. petersburg. stay tuned, you're watching "worldwide exchange" on cnbc. when you booked this trip,

you didn't know we had over 26,000 local activities listed on our app. or that you could book them right from your phone. a few weeks ago, you still didn't know if you were gonna go. now the only thing you don't know, is why it took you so long to come here. expedia. everything in one place, so you can travel the world better. you get to do the dishes.ed...

bring 'em on. dawn ultra has 3 times more grease-cleaning power. a drop of dawn and grease is gone. a trifecta of record closes yesterday. 0.7% of gains for the week as a whole ahead of today's games, we're up less than that. up about 0.6% for the nasdaq. 0.3 for the others. we'll extend those again.

perhaps record closes again. up 0.2% in the premarket. one-week chart of the bank's index. they were down sharply in the middle of the week. forecasts for trading revenue this quarter lower. you saw the selloff in the middle of the week. we have more positive outlooks on valuations on the basis of recent share price weakness. they did have a good day y yesterday. final look at oil markets, the pulling out by the u.s. out of the france accord has been seen as a negative. >> russian president vladimir putin set to take the stage today with several world leaders at the.pe st. petersburg international economics reform. geoff scut mormore is there.

how will this go? >> we have vladimir putin and endian prime minister mo i indian prime minister modi on the same stage. you can bet one of the top topics megyn kelly will bring up is trump's decision to step aside from the paris agreement. i spoke with mark sutton, the man who runs international paper, i asked him whether donald trump is listening to the american business community on the virpme meenvironmental issu paris. >> i do think the president is listening. i do think he's trying to manage a lot of different issues for a lot of different constituents. i'm still engaged and think the business community has a role to play in improving the economy in the u.s., and for a company like

international tape, the economy globally. >> back here in russia, mark is the chairman of the u.s./russia business council. we have seen more american executives attend this year's forum. i just wonder how that plays into some of the comments we get from president putin, whether he will talk about how he hopes for early normalization of relations in spite of the ongoing senate intelligence committee investigation into former fbi director, mr. comey and others who may have had connections with russian officials. back to you. >> all eyes will be on those comments from president putin later on today. thank you very much for that preview. on a programming note, sunday night don't miss megyn kelly's exclusive interview with russian president vladimir putin, it airs at 7:00 p.m. eastern time

on nbc. now to sports, the cleveland cavaliers and golden state warriors faced off in game one of the nba finals. the third straight year they met for the title. golden state beat the cavs 113-98. kevin durant had several dazzling dunks. game two of the nba finals is sunday night. this was a big one. curry was disappointed in how it finished last year. now he has secret weapon kevin durant. i wonder if he's being upstaged. >> he comes across as a team player, not a total prima donna. >> but he's still a star. i think he would just like his team to get over the line. >> and we have under armour and nike battling here. >> there we go. but no one is up 15% like lululemon this morning. >> correct. tri again twitter.

the social media firm takes a stab at data collection. we put the technology to the test. let's say its accuracy rate is fairly low. we'll give you those details after the break. events every d. ddos campaigns, ransomware, malware attacks... actually, we just handled all the priority threats. you did that? we did that. really. we analyzed millions of articles and reports. we can identify threats 50% faster. you can do that? we can do that. then do that. can we do that? we can do that.

good morning. the record rally rolls on. stocks across the world hitting all-time highs. in the u.s. the jobs report is on deck. we're setting you up for the day ahead. >> corporate america sounds off as president trump pulls america out of a landmark climate deal.

according to twitter, my dear co-host wilfred frost is a retired arts and crafts lover with no fashion sense. why the company's big data is, shall we say, a little flawed. >> i'm not retired yet. >> it's friday,down 2, 2017, you're watching "worldwide exchange" on cnbc. ♪ you're not retired, but you lead a leisurely life. i can see why they're saying that. >> i'm not an old age pensioner. great stuff coming up. i'm wilfred frost. new music friday, here is french montana singing "unforgettable" i may have gotten that one because i'm a millennial and i'm in touch. >> i don't believe that. >> let's check in on the markets after a trifecta of record

closes on wall street. dow, s&p and nasdaq seeing record highs. the dow was remarkable jumping more than 100 points into the close. we had not seen that major index hit a record high in a while. the overnight action in asia, continuing follow-through gains from the u.s. hong kong stock market at a two-year high. the nikkei goes past 20,000 for the first time since 2015. the shanghai comp closes up 0.10%. early action in europe, ahead of the british election next week, ftse 100 up 0.3%. dax showing some strength. up 1.25%. >> the autos are leading the dax higher which in part is the paris decision to pull out of the paris accord. volkswagen is up 2%. oil prices are slipping about 2% off the back of the decision to pull out. so very much a decision that is

being interpreted as potentially increasing supply of oil as opposed to boosting demand for it. 47.1 on wti. ten-year treasury note not moving much at all over the course of the last couple of weeks. 2.2 is the yield. 2.211. maybe the big jobs number can move it in the way the adp jobs number failed to move it yesterday. as for the dollar, it's down about 0.2% for the week as a whole. still slipping, still not in bullish territory, but that slide of the dollar has slowed down. in may it lost 2%. this week it's lost 0.2%. today not much movement as you can see. gold prices to round things off, flat yesterday, flat for the week as a whole. to your top business story, corporate america sounding off after president trump said he is pulling the u.s. out of the

paris climate agreement. in a statement yesterday the president said that the deal is not in america's best interest. listen. >> the paris agreement handicaps the united states economy in order to win praise from the very foreign capitals and global activists that have long sought to gain wealth at our country's expense. they don't put america first. i do. i always will. >> you know what i thought was interesting, he didn't argue that climate change is a hoax and therefore we don't want to be involved. he argued it was a bad deal. very transactional argument. that it lets other countries take advantage of us. lets china build more coal plants when we can't. our coal miners will suffer. he went to the economic argument which is why the business we action is a little antithetical

to what the president said. >> as you say, not necessarily criticizing the science, it's a surprise for two main reasons. if this is just a renegotiating strategy, does he want a better deal from it? he's going am against every country in the world, apart from syria and nicaragua. on top of that, the strength of opinion, particularly european leaders, look at president macron's response is so, so strong when he says we don't want other countries to laugh at us, he is sparking that reaction. >> that was not lost on twitter. >> if this is a renegotiation strategy, it was perhaps not informed. >> if he's arguing that big business gets hurt by this, that's not what we're hearing from them. some of the biggest corporate leaders opposing the move.

tim cook saying he's disappointed with the white house's decision. bob iger and elon musk say they're bailing on the president's advisory council. nike saying climate change is a serious global threat. jeff immelt tweeting i'm disappointed with today's decision on the paris climate agreement. industry must now lead and not depend on government. the move prompted lloyd blankfein to send his first tweet ever, today's decision is a setback for the environment and for the u.s. leadership position in the world. heard from jamie dimon of jpmorgan, disagrees with the administration, he says we have a responsibility to engage our elected officials, work for pollities that improve peoples lives and protect our environment. >> that line shows he has not stood down from the council.

elon musk, who decided to stay on the council, unlike travis kalanick who is stepping down. jamie dimon saying there is still work to be done on the council. >> the iger one was more interesting. >> the president is in charge of the country, and jamie dimon in the past has said for patriotic reasons i want to stay there and influence. clearly he's cloudily criticizing the decision to pull out. >> you are hearing it from business on all sides. the question is can this white house continue to be the pro business administration that it wants. think of how many jobs announcements we have gotten from some of these big companies since trump was elected, hire america, manufacturing in america, does there stall that momentum a bit? >> oil prices about a 2% move to the down side. some airlines in europe and automakers in europe up about a

percent. and vestas wind in europe down so not a massive market reaction. economists saying this might influence the u.s. economy in a long, long term if it's enfor enforced. in the short-term, no real market impacted. >> stocks closing at another record. >> meal prep delivery service blue apron filed for an initial public offering last night. landon dowdy joins us with the details. >> the 5-year-old company plans to go public on the nyse under the ticker simple aprn. blue apron aiming to raise 1$10 million. that number could go higher as the company sees rapidly expanding revenues. net revenues grew more than ten times between 2014 and 2016. blue apron says it had more than 1 million customers at the end of march, that's up from the 879,000 at the end of last year.

lead underwriters are goldman sachs, rivals hello fresh, plated and marlee spoon are gaining fractionment i had a chance to test a couple of these. >> i was wondering if you were in an ad for the company. >> i tried these out. i wanted to compare them. my take, and i think that maybe customers would agree, i think blue apron has the better flavor, better quality meat. i think it's difficult, because it takes so much time. it's so complex. the chopping -- have you tried it? >> where is the invitations to these dinner parties you've been hosting? >> y'all are so busy. >> it has to be afternoon tea parties for us. >> you can order three different meals for two people. it's all about how you order. >> i think it's very hard. you have to have the right tools, utensils.

you almost have to be a chef to do it. >> are you suggesting you're not a chef? >> way too complicated for me. i googled the entire time. do you know what blanching is? >> no. >> exactly. >> people do love it. >> landen, thank you very much. shares of twitter have had a nice run, up 13%. despite gains twitter is facing declining revenues and is asking for help. the company began letting users view and edit the demographic information it had on them. with so many personal information out there, you would think twitter knows its users well. that's not the case. >> they think i'm single and a single parent. >> they think i'm retired. >> single mom, corporate mom. female head of household. >> are you a big city mom? >> no. >> are you a trendy mom? >> i'm not a trendy mom. >> they don't know you're a mom. >> they don't. >> i'm a corporate man?

>> it's ridiculous. >> baby products, not. >> not birkenstocks. i do buy ben&jerry's. >> granola bars, that's me. >> they think you're a fluid baby boomer who is a senior who speaks spanish. they think he's a male head of househo household. they think you're a wife. >> nascar super fans. that's us. >> really? >> no. >> are you healthy and fit? >> i don't think so. >> do you own a gmc? >> no. >> a volkswagen? >> no. >> an auto parts buyer? >> no i don't even own a car. >> retail category. that's true, very boring. >> look how many auto things. >> are you in the market for a car? they think you're a fall fashionista. >> do they really? they're out of their minds. >> i need oral care. that's disturbing. i would consider myself a good brusher and flosser. >> we reached out to twitter, they got back to us saying

they're leading the industry in terms of privacy because they're the first company to allow users to see all this information, edit this information, all these other companies do have it, but they're the ones opening it up. so we think as a nice surprise you might want to look at your own, since you didn't make it into the video. you just pulled it up. >> how do i read this. >> now that landon and wilfred are experts, they can tell you what it says. >> you have an suv. >> do you own an suv? >> i don't. >> your body style is luxuriment. >> i see ice cream. dead on, haagen-dazs flavor. >> it says you're a democrat. >> you need oral care, too. >> democrat from ohio. i am from ohio. all this information that they collect. it's not from what you do on twitter. >> multi family. >> it's what you do outside of twitter. it's your credit card spending. browsing. >> outdoor enthusiast? wrong. >> finance excellent. i don't know if that's her finances or knowledge.

>> her credit rating, savings. >> will twitter have already been using this data even though they only made it viewibility to u viewable to users? >> the only they're doing now is letting us see how they've been targeting us. the tar getting hgeting is alre happening. maybe it's all the early lunches by you. >> that's a much better reason to explain why i'm not old and boring. >> why do they think i'm a senior citizen? >> it's a mix of what you're browsing, what you're buying, e-mail accounts, everything you're doing off of twitter, some of it is real and the rest is inferred. maybe in you're always going to dinner at 4:00 p.m., we'll assume you're retired.

it's that type of stuff. >> they will not assume we wake up at 3:00 in the morning. >> exactly. >> eric, thank you. >> you got it. coming up, the must reads no big surprise, the paris climate deal is the big focus. e a night! does nobody like the future? c'mon, the future. he obviously doesn't know intel is helping power autonomous cars and the 5g network they connect to. with this, won't happen in the future. thanks, jim. there's some napkins in the glovebobo okay, but why would i need a napkin? you could have just told me a bump was coming. we know the future. because we're building it.

welcome back to "worldwide exchange." i'm sara eisen along with wilfred frost. it is time for our must-read stories catching our attention.

everybody is rehashing the decision by the trump administration to pull out of the paris accord. i went with trump could spur the rise of a new not so liberal order because it c order. he characterizes the way trump views the world as competitive with the rest of the world instead of cohesive. he says that is no so far off, but in 1945 the world changed in the wake of two of the deadliest wars in human history with tens of millions killed and much in europe and asia physically devastated. the united states created institutions, rules, norms that would encourage countries to solve differences peacefully, negotiations rather than war. a rising tide could lift all boats. that historical perspective is necessary at a time like this when you hear about this

president going in the opposite direction, pulling away from institutions, multi government agencies, which may be flawed. and president trump struck a cord -- >> it's been framed -- >> don't forget history is the message. >> we've seen the move in oil prices, otherwise not much happening. politically, geopolitically what does this mean? will he cause a meaningful rift and just watch president macron's video in response. >> what are the long-term implications? how long does it take to unwind this order? i don't think anyone though kn answer to this. >> my pick, this is not an opinion piece, it's a news piece in the financial times, what a trump exit from the paris deal means for the itself. it u.s. what does the agreement require in the first place, how are emissions targets meant to be

met? what are the punishments if you don't meet them. it breaks down these individual questions. not in an opinionated way but explains when and if this deal could be renegotiated. >> eamon said by 2020. >> exactly. the u.s. can already decide not to meet its targets, but in terms of actually renegotiating, which he laid out is his aim, he didn't question the science anymore. he said this is a bad deal, i want to renegotiate. that can't be done until 2020. >> everybody has an opinion, including big business, politicians and americans. yes, we should read the fine print. >> stocks setting a record high as we await the jobs report. david rosenberg will join us after this short break. s my hea. this is where i trade and manage my portfolio. since i added futures, i have access to the oil markets and gold markets.

okay. i'm plugged into equities- trade confirmed- and i have global access 24/7. meaning i can do what i need to do, then i can focus on what i want to do. visit learnfuturestoday.com to see what adding futures can do for you.

tha...oh, burnt-on gravy?ie. ...gotta rinse that. nope. no way. nada. really? dish issues? throw it all in. new cascade platinum powers through... even burnt-on gravy. nice. cascade. rumor confirmed. they're playing. -what? -we gotta go. -where? -san francisco. -when? -friday. we gotta go. [ tires screech ] any airline. any hotel. any time. go where you want, when you want with no blackout dates. [ muffled music coming from club. "blue monday" by new order. cheers. ] [ music and cheers get louder ] the travel rewards credit card from bank of america. it's travel, better connected. welcome back to "worldwide exchange." i'm sara eisen with wilfred

frost. the countdown clock is up until the jobs report. non-farm pay yol roll expected rise by 184,000. joining us is david rosenberg. you've been sort of negative on the economy and interpreting the recent xhing daeconomic data, b fellow economists are looking for a strong number out of today's report. do you agree? >> i think the adp number is certainly tilting the risks for a decent non-farm number today. could be close to 200,000. but, you know, you have two things going into gdp growth, you have employment and productivity. so if employment is doing fine, productivity growth is lagging behind, all you get out of that martini shaker is 2.5% growth

for the second quarter, you add it up to the revised first quarter number, 1.2, with or without decent employment, we're still talking about economic growth below 2%. employment is one part of the story. the other thing to consider is that employment is classically one of the most lagging indicators. by the time the cycle turns, employment still rises and then declines. it's not how i would refer to it as a reliable leading indicator. it tells you nothing about productivity growth. >> if we do get a big blowout number, do you think the bond market reacts? it's been stubborn, 2.2% the ten-year. it's not really moving based on whatever way the data goes. the bond market always seems to get the story correctly from an economic standpoint.

i think you want to go back to lael brainard's speech she gave the other day where she acknowledged we have had some decent employment numbers over the course of the past year or two. the unemployment rate has grandson 10% to 4.4, but the missing link and what everyone should be focusing on in today's report beyond the headline is the wage number. because if you're asking how could it possibly be we're churning out numbers to close to 200,000 at unemployment, and the 2.2% with no more qe and a threat that we will start to see the fed tinker with the balance sheet in the other direction, how is that possible, because we haven't seen much wage growth this cycle at all. lael brainard talking about the breakdown in the phillips curve tradeoff between mroiremploymen inflation. >> if you are expecting this cycle to turn in a more negative way, give us two data points

you're watching as leading indicators, if jobs is not that. >> the flattening yield curve is certainly something that i've always paid attention to. from an economic standpoint, focus on autos. when autos peak, four out of the last five months, auto sales have gone down. that hasn't happened in eight years. one thing i did notice in the beige book, on top of the downbeat tone to the consumer, that's what's interesting, we can have all the employment growth in the world, if consumers are hunkering down, it means the savings rate is going up. that's a much more deflationary development than what's happening in the labor market. so we're seeing this segment of consumer tr consumer frugality coming back in. more and more regions are talking about how commercial real estate activity is peaking

out and rolling over. looking at it as late cyclical components of gdp. >> are you bullish on your own nation's economy? some decent gdp numbers out of canada. >> that's what's interesting, this is again where you can get the dichotomy between the my and the stock market. canada is actually one of the poorest stock markets this year, yet the strongest economy in the g7. could be that a lot of this was priced in last year canada was one of the stronger stock markets once oil prices came off the lows. you're right, economic growth is starting to perk up here pretty impressively. no doubt about that. >> who knew, that was a curveball. canadian economy, david what about the u.s. stock market at a record high despite some of the gloomy forecasts that you have just laid out. do you think that there's a mismatch in fundamentals or is it just trading off of something else? >> you know, nobody can really pick the timing in terms of when

we'll bottom or peak. i think we're somewhere between the bottom of the 7th and the bottom of the 9th. i think we are late innings. right now i think the big fear investors have is missing the melt up. a lot of this is fund flow driven, technical driven, but certainly not fundamentally driven. it was interesting to see in the first quarter gdp data that corporate profits at large were negative. the multiple continues to expand what was interesting yesterday is we looked back and said wow, the major averages hit an all time high but bond yields did not move, commodity prices were down 0.4%. the currencies fell. and so we have a lot of other nonratifications. the credit spreads yesterday narrowed with that stock market rally. the answer is no. so when you have a stock market hitting you high, but there's no ratification of other asset classes, that's a red flag. >> message received. >> david rosenberg for us. that's it for "worldwide

exchange." have a great week next week. >> you, too. safe travels to london. "squawk box" is next. to monitor drilling operations in real-time, so our engineers can solve problems with the most precise data at their fingertips. because safety is never being satisfied. and always working to be better.

good morning. hat trick for the markets. all three major indexes hitting record highs. the futures pointing to a higher open fwan today. big business after president trump pulls the u.s. out of the paris accord. and a retail bright spot. shares of lululemonen soaring after an earnings beat. it's friday june 2nd. somehow the sun managed to come up this morning. 2017. "squawk box" begins right now. ♪

live from new york where business never sleeps. this is "squawk box." good morning, everybody. welcome back 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. we start this morning on this friday morning with the markets. the dow, s&p 500 and nasdaq hitting record highs yesterday. if you look, the u.s. equity futures this morning are indicated higher once again. the dow would -- if it were to open at these levels, almost 65 points, it would open at a new intraday high. yesterday was a new closing high. the 64 points would push it to the new intraday high. s&p 500 is up by 6.5 points. nasdaq up by 23 points. overnight in asia, the nikkei jumped to the highest level in two years, rising above that 20,000 mark. you can