good morning tech on a tear the nasdaq posts the best day of the year. markets now, sterling slipping on comments from mark carney, why he says now is not the time to raise rates. and tax reform timetable how speaker paul ryan vows to change the code this year a live report from washington ahead it's tuesday, june 20, 2017, "worldwide exchange" begins right now. ♪ >> good morning. very warm welcome to "worldwide

exchange" on cnbc. i'm wilfred frost. >> i'm seema mody in for sara eisen. >> let's get straight to the global market action great day for stocks yesterday, particularly the nasdaq. the dow up 0.7 the s&p 0.8. the nasdaq 1.4%. the nasdaq numbers to watch out for, 6321 is a record close. 6341 is a record intraday high so the dow is performing well. again, having had a few days of selloff prior to that. encouraging rebound in tech. 8 out of 11 sectors positive tech the best, energy the worst. ten-year treasury note did edge back up ending last week about 2.14%. at 2.16. >> a mixed day in trade for asia the japanese index closing at nearly a two-year high, but a different story for the hang seng and shanghai composite

retreating ahead of what many call a highly anticipated decision from the msci today on whether the index holder will include china "a" shares, it's considered a watershed moment for china stocks if they get the green light this would allow the u.s. funds to get more exposure to chinese stocks ahead of that decision, the shanghai composite closing down. european stocks following the tech outperformance we saw last night. german and french stocks are also on the move here. specifically the technology sector outperforming the dax up 0.3%. we see positive gains in the uk, italy and france >> the dax hitting a record hig this morning could be set for a record close after the german ifo institute upgraded the forecast forege gea

growth oil prices slipping yesterday, that's why the energy sector was the worst performer on the s&p down 1.2%. up 0.3% today. dollar boards for you. a bit of a pop in the dollar yesterday. up 0.4%. mini rally relative to what we've seen recently. a little bit of dollar strength against the pound. not much movement against the euro and yen pound slipped in wake of comments from mark carney. a dovish tone to his delayed mansion house speech earlier goal prices down 0.8% yesterday. they are roughly flat this morning. slightly higher at 1248. >> the head of the bank of england says now is not the time to raise interest rates. speaking to london's financial community this morning, mark carney warned of weak wage growth and a potential hit to incomes as britain begins talks

to leave the european union. >> long we will all begin to find out the extent to which brexit is a gentle stroll along a smooth path towards the land of cake and consumption. but whatever happens, monetary policy will be set to return inflation sustainably to target while supporting as best it can the necessary adjustments in the economy. >> i hope it does lead to cake not sure why he used that word >> the pound is down 0.3% against the greenback. carney says depending on how talks progress, businesses may need to activate contingency plans. >> on the size of that move in sterling, that's on the back of last week and the bank of england decision, no change in rates. the vote was 3 to 5. 5 voting for no change 3 voted for a hike which surprised people we got a pop in the pound. roughly the same size that we

get a fall today so no real movement. speaking of brexit, brexit talks began yesterday. david davis, the brexit secretary heads to spain today to meet with members of the spanish government he began formal negotiations with the eu yesterday in what is being called an early concession the uk agrees to brussels' demands on sequencing of talks, meaning trade negotiations will have to wait until other key negotiations are resolved. no huge details otherwise, in what was otherwise a positively toned first press conference i'm sure more of those to come >> still early. we are following a developing story on barclays at this hour. uk authorities filed criminal charges against the bank and four former top executives over undisclosed payments to qatari investors during the financial crisis the uk's serious profraud office says barclays and the four

executives conspired to commit fraud. two individuals including john varley were charged with the provision of unlawful financial assistance barclays said it is considering its position in relation to the developments shares down fractionally >> the reaction in share prices is small for two key reasons one this is a five-year investigation. we have known it will come to a conclusion at some point soon. so there's been provisions priced in. and whilst clearly barclays is being charged it was a long time ago and the executives mentioned here are all since departed barclays that's why you are seeing a smaller reaction the sfo is an organization that theresa may before her weakening following the election had been planning to abolish. questions around that. not s we'll continue to watch that developme development. lloyd blankfein says things

in his words are pretty good with the economy he cites global statistics, positive metrics in the u.s. speaking to jim cramer on "mad money" last night. >> i knows there some people who believe, as do we all, tha sensible regulation is good. but there was some redundancies and there's been a bit of a wax buildup as layers have gotten on it and impeded the economy and he represented trying to deal with it the devil, of course, is in the details and how you look at it depends on what you wanted but it seems to have gotten bogged down in the issue i would say the market now is not what he wants to do, but whether he'll be effective in accomplishing it >> much more of jim's interview with lloyd blankfein in the next half hour including why the goldman sachs ceo decided to start tweeting seven tweets he's done so far. joining us now to discuss

this week's rebound is cnbc contributor guy adami. good morning to you. >> good morning. how you are guys doing >> we're good, guy >> we're watching the banks. i want to get your thoughts, it seems like they're in a sweet spot because while the yield curve flattened, we've seen this appreciation in some of these bank stocks. but it doesn't make sense. it's a bit perplexing. is this just a rotation out of tech >> does it make sense? i think it does make sense that you will point to the 210s flattening out people look at that and say how can banks rally in this environment. i understand what they'd be looking at but the reality is 210s to the banks are not nearly as important as some other metrics, maybe 15/30s or 10/20s which is what other people look at. i think what you're seeing now

is just a repricing. the market i financial crisis, these banks were pricing 2 1/2, 3 times tangible to book some are pricing less than tangible book. but some are saying the banks don't deserve the valuation we saw in '07 and '08 or at such a discount now i think you're seeing a repricing. i think banks are heading towards 1.8 times price to tankibtan tangible book. when do you that, i think goldman sachs looks to be in the midst of a repricing to get back to some normalcy in terms of that metric. >> the stress test results on thursday could remind investors if they go well on how the environment has improved even without further deregulation

from trump switching focus to tech, yesterday's rebound is resoundingly strong. do you think that draws a line under the recent weakness? we got a flotation last week and it doesn't look like it lasts long >> i think it does draw a line you look at where did we sell when we had stocks to the down side two names i point to, look at the move that nvidia saw on that friday and monday. the stock traded from the high 160s down to 142 or so look at the bounce in that and obviously amazon is the other one. when you had that mini flash crash print down to 927 and the bounce what encourages me about this is on that friday and ensuing monday, we saw this from tech but also from energy yesterday, though as you pointed out, we lost some move in

energy, the financials held in there. so we're seeing a rotation, but you are seeing relative strength in some other areas. i think that's an encouraging sign what sort of concerns me is yous currency volatility now is outpacing equity vol which is concerning >> that's very much politics play nothing that. central bank actually. guy, thank you very much for joining us >> thanks for having me. turning to the agenda on wall street. corporate earnings will be front and center with adobe systems and fedex reporting results after the bell as for data, first quarter current account desit wificit w released this morning and look for commentary from the fed with eric rosengren and dallas fed president robert kaplan, both scheduled so speak and you'll hear exclusively from chicago fed president carls

evans at 10:30 a.m. on cnbc. shares of tesla are on the move on reports that the company is look to break into a new market landon dowdedy jo edy joins us e details. >> reporter: tesla is close to an agreement to produce cars in china for the first time this would give the electric carmaker access to the world's largest auto market. setting up production in china is key to elon musk's goals to continuing to grow in the country. tesla's revenue tripled to $1 billion in the country last year alone. another big perk, tesla would avoid a 25% tax on certain vehicles built in china. according to reports, we could get an announcement as soon as this week. tesla has not publicly commented. look at the stock. shares are up about 2.7% in early trading. >> landon, thank you very much for that more stocks to watch this morning. century link facing a class action lawsuit seeking up to $1

billion. the complaint is looking to establish a group of consumers harmed by an alleged high pressure sales culture this comes just a week after the company was sued by a former employee for allegedly running a sales incentive scheme and firing her for drawing attention to it. stock down 1.2%. shares of chipotle taking a hit this morning the restaurant warning investors it will be spending more on marketing and promotions for the second quarter that stock down about 2% whole food shares continuing to rise amid speculation of a bidding war. the company's stock skyrocketing on friday on news that amazon agreed to spend $42 per share for the supermarket chain. will there be another buyer? that's the question. >> a nice bump over the week. coming up, the battle for ad dollars. google and face book may rule the online world snap is hoping to change the

game we'll head to the major advertising meeting in france after the break. at wells fargo, it's our expertise in finding this kind of insight that has lead us to become one of the largest investment and wealth management firms in the country. discover how we can help find your unlock.

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so tech really rebounding strongly this morning, we're in positive territory for the futures markets but nowhere near as strong gains in europe are higher markets are higher but not as strong as yesterday. let's look at the dollar board, particularly the pound, which is down 0.3%. that's after mark carney, the bank of england governor, was dovish about the need for any rate hikes any time soon seema? >> the cannes lions advertising festival is underway where ad giants are debating where to put their money next julia boorstin is there and sat down with a ceo of the largest ad conglomerate. >> we talked to sir martin sorrell about where his clients with putting their ad dollars in the likes of concerns about accountability and brand safety. he said facebook and google

which have a big presence here are under growing scrutiny >> there's fake news, there's measurability, there's fraud, transparency, all these issues are placing a lot of focus on the duopoly, google and facebook control 75% of digital advertising, which in turn is 30% of the market, so 22%, 23% of the worldwide advertising market is controlled by those digital duopolies. >> he says his clients would like to have a third major option as an alternative to that facebook/google duopoly. i asked whether snapchat, which also has a presence in cannes, could be the third giant >> i think to be fair, if you asked me that question six months ago i would have been sort of more -- more long on it. probably be a little bit less long on it interestingly you will hear one

or two interesting announcements from snap in terms of major new gains. >> we're hearing from a number of snap's partners here that they're happy with their return on investment in those snap ads on that platform there is a huge demand for presence on sflnapchat as e evidenced by that time warner/snap deal yesterday we will have more from cannes as well as bob pitman and ryan seacrest, that's coming up on "squawk box. >> looking forward to all of that a quick question, chatter focused on the digital advertising because it's been important, but what are we hearing about traditional advertising in cannes? >> right now we're here at nbc universal's booth, the parent company of cnbc. they've been meeting with advertisers. their big message is their

scale. they have such broad reach across all of nbc universal's various properties talking about their access to a huged a yens through t ed audiee olympics, as well as snap and buzzfeed another piece of news about the traditional media companies. this morning fox announced they will embrace a six-second ad format giving that as an unsq p unskippable option for advertisers. it will be interesting to see how advertisers respond to the new options, whether it's from traditional or digital media players. >> great stuff looking forward to more coverage from cannes. still to come, tax reform is front and center on the washington agenda. we'll tell you what we're expecting to hear from house spear ul rkepayan coming up. we're back in a couple minutes

exchange." voters in georgia head to the polls today in what's become the most expensive congressional race in american history republican karen handle and democrat jon osoff are facing off. president trump barely won the district in november which includes suburban atlanta giving democrats an opening after tom price left to join the president's cabinet. all eyes on that a good gauge of how well the president is doing.

house speaker paul ryan is promising to complete tax reform this year despite the crowded legislative agenda in congress ryan is speaking to the national association of manufacturers this afternoon in prepared marks, ryan says republicans who control congress and the white house have a rare opportunity to overhaul the u.s. tax code ryan is expected to warn against accepting half measures, an apparent jab at some lawmakers who want to cut taxes instead of simplifying the tax system. president trump taking a shot at dnc last night >> we protect government websites from attackers, majority of the government websites, including white house.gov. >> the dnc could have used you >> it's an important job, as you can imagine, there's a lot of folks out there trying to do bad things >> you'll hear more from tom leighton at 7:00 a.m. eastern

time on "squawk box. foreign policy dominating president trump's agenda today tracie potts joins us live from washington with more good morning >> let's start with north korea. that 22-year-old student who came home unconscious and then died has prompted a response from president trump he calls north korea a brutal regime he says we'll deal with them dealing with them could mean a travel ban the administration is considering an executive order congress is considering a law that would require people to get a license before they go to north korea. they are also dealing with russia and conflict over the skies of syria after the u.s. shot down a syrian jet now russia wants to target our warplanes there. this is an area where the president has been accused of being too close to russia or people around him being too close to russia. now we could see major conflict going on in syria.

finally israel and the palestinians jared kushner, the president's son-in-law and close adviser headed to ramallah and jerusalem tomorrow to begin talks. to begin to lay out the framework for a peace process. he is new at this so is the administration it's something that eluded diplomats for decades. now jared kushner hoping to come back with at least some agreement on where to start. >> as we already mentioned, we'll be listening for speaker ryan today what time do we hear from him? >> i'm not sure. we will hear from him. he will team up with another network to talk about some of these issues including healthcare, a big one for congress it's in the hands of the senate. it will bounce back to the health if they get the series of votes done before the fourth of july >> great stuff thank you very much. tracie potts for us in washington still ahead the top stories and a round up of global

markets. and why lloyd blankfein says he has eventually taken to twitter. there's more "worldwide exchange" on cnbc. ...backsweat and gordo's everything. i love you, but sometimes you stink. ♪ new febreze fabric refresher with odorclear technology... ...cleans away odors like never before. because the things you love the most can stink. and plug in febreze to keep your whole room fresh for up... ...to 45 days. breathe happy with new febreze.

good morning the record rally goes on as the tech turnaround continues. we're setting you up for the trading day ahead. ready for prime time, and it could be a game changer for the china stock market. and forget f.a.n.g., there's

a new four letter acronym on wall street. we'll tell you what it is. you're watching "worldwide exchange" on cnbc. ♪ good morning warm welcome to "worldwide exchange" on cnbc. i'm wilfred frost. >> i'm seema mody in for sara eisen. what is that four-letter word? >> you generously just suggested it might be w.i.l.f., but i don't think it will be that. >> or mody >> could be all sorts of things. i don't know what the story is do you know what it is >> we'll see >> a look at futures at this hour pointing higher again, but not as strongly as yesterday the dow up 0.7 the s&p up 0.8 nasdaq led the way up 1.4% the likes of apple gaining the best part of 3%. 8 out of 11 sect oefrts s&p worp

were up. the s&p is now red the dow and nasdaq still hanging on to fractional gains in the premarket. asian trade for you. gains in japan the yen was a bit softer yesterday. that's allowed the nikkei to rally today. hong kong and shanghai just below the flat line. europe showing gains again today. not as big as yesterday. yesterday a percent or so of gains. today about a third of a percent. that allowed the dax to hit a record high. it's on track almost to be at a record close we'll keep an eye on that we saw the efo institute in germany up grade the forecast for germany up 0.8% this year. part of the reason for positivity in the european markets. >> technology the best performing sector in the stoxx 600. looking at oil, we're starting to see relief rally here in the price of oil on data that shows a revival in output from libya

so that's helping i'm move hioie higher today brent crude at $47 similar story for wti crude. nat gas, a big winner yesterday, continues its move to the upside the ten-year yield it's been nearly 12 months since the ten-year yield hit the all-time low of 1.3% right now. 2.18%. that's been a big story especially given yoowe've seen outperformance in financial shares gold, after closing at the lowest in one month, gold up a buck to $1,247 in the currency market, a bit of softness in the yen. focus on the pound on comments from bank of carney. >> bank of carney. >> bank of england, mark carney. >> he would love to be called bank of carney the bank of england's mark

carney says now is not the time to raise interest rates. he warned of weak wage growth and a potential hit to incomes as britain begins talks to leave the eu >> before long we will all begin to find out the extent to which brexit is a gentle stroll along a smooth path towards the land of cake and consumption. but whatever happens, monetary policy will be set to return inflation sustainably to target while supporting as best it can the necessary adjustments in the economy. >> carney says depending on how brexit talks progress, businesses may need to activate contingency plans. speaking of brexit talks, david davis heads to spain today to meet with members of the government the uk brexit secretary began formal negotiations with the eu yesterday in what's being called an early concession the uk agreed to brussels' demands on the sequencing of talks, meaning

trade negotiations will have to wait until other key issues are resolved this being framed in the british press as a significant loss for david davis on that first day of discussions. the brits felt germany and france were on board with their view that they could negotiate everything at once but the eu saying, no. so a two-stage process >> you would like my must-read today. it's about the brexit from george soros. following a developing story out of the uk on barclays. uk authorities filed criminal charges against the bank and four former top executives the uk's serious fraud office says barclays and the four executives conspired to commit fraud. two individuals including john varley were charged with the provision of unlawful financial assistance barclays said it is considering its position in relation to the developments shares down 0.2% today

this has been a five-year investigation. people have been well aware of it but this is big news, including the fact these four executives, john varley, a ceo being charged on those two counts, that's significant not really affecting the share price. in asia, for the fourth straight year, msci will announce a decision on whether or not it will include mainland chinese stocks in its benchmark emerging market index. the stock index giant in the past has turned down adding the world's second largest stock market because of high volatility and frequent trading halts have deterred investors. last year this was rejected because of limitations on how much foreign investors can withdraw and a requirement for pre-approval from chinese authorities on district investment a decision expected this afternoon. one other change is blackrock, they have also said that china

is ready for prime time. >> we'll have to see if it works. they stepped away from it a couple times not quite got over the line. it would be disappointing if they fail to do so this time. keep an eye on tesla it is reportedly close to an agreement to open a chinese production plant >> nestle has raised 80 million for freshle a new start up nesscy said c chipotle issuing a warning to investors that it plans to spent on marketing promotions in an effort to come back from its food safety crisis the stock down 2%. whole foods shares continue to rise amid speculation of a bidding war. the stock skyrocketing on friday on news that amazon agreed to pay $42 per share for the supermarket. boeing and acg announcing an

order for 20 737 max 10s the order is valued at 2$2.5 billion at list prices. orange telecom is cutting its stake in rival bt group. the company reducing its stake from 4% to 1.3 why are you laughing >> i love your accent. orange >> it is not orange. >> how often -- how many years of french did you take in school >> probably until i was 16 or 17 >> because you're basically fluent >> i should be much better than i am i'm far from fluent, alas. one genealogy company is looking to plant roots on wall street landon dowdy has those details >> ancestry.com says it has confidentially submitted plans to go public with the s.e.c. the geen yolgy website did not discuss shares or prices last year ancestor.com revealed

a sovereign wealth fund acquired minority stakes in a deal valuing the firm at 2$2.6 billion. ancestry is part of an upswing of firms that made a wall street debut in 2016. a total of 66 companies have gone public. that far outpaces last year's total. >> thank you very much for that. goldman sachs ceo lloyd blankfein explaining his new found love for twitter here's what he told jim cramer last night >> i commented on immigration, on lbgt issues, i commented obviously on the environment, and the reason why i do it, it's something that is in our wheel house of expertise, so i commented. before twitter, i did those things by press release. the other thing i'll comment on is when things affect the

ability of our people to be who they are and to do their job and to be effective as professionals. >> he's been pretty reserved on twitter. seven tweets in total. very clearly thought through i wonder whether it's heavily influenced -- it's not the donald trump use of twitter. which as a wall street ceo his team wouldn't allow him. he's done seven. the last on june 15th. i tweeted him aggressively during the interview and afterwards he didn't reply. it suggests he will remain reserved, which is a bit of a shame. it's more fun for the guy who covers the banks if we got as much out of him as we do donald trump, but we don't. >> quality over quantity. taylor swift making a huge return to streaming services four of her five studio albums are back on the billboard 200 chart after returning to all platforms, including her album 1989, which jumped back into the top 40 at number 31. in total her catalog saw a 551%

jump in demand have you met t. swift yet? >> nope. we have not had new songs from her in a while, have we? >> i read she's taking an indefinite break from the public life she published only two photos in the past two months. >> starving us >> sometimes you have to pull away to draw them in if works spotify is testing a new sponsored song ad unit the feature allows labels to pay to have sponsored song appear on play lists users follow. that will be coming up. hasbro in focus today launching a new board game subscription service starting this summer the toymaker will ship three new games to subscribers, the box will cost $50, and subscribers can choose from party or

family-themed games. you don't see much innovation in the board game space >> i miss board games. i used to love a good few board games. i still play a bit of risk on my ipad >> risk? you play risk? >> no? >> so nerdy. >> it's a fun thing on a plane what about choout chutes and l. >> it's fun, you can take over the world. if you play on the easiest setting, you always win. i don't know if risk is hasbro, but it translates well, that board game on to ipad. monopoly doesn't >> you tried monopoly on ipad. wow. >> you haven't >> no. >> the childhood games, buy property, build hotels >> we have a dealmaker in the white house, i get it. coming up, why the u.s. should not raise the debt limit. today's must reads are coming up and a can't miss interview coming up this morning treasury secretary steve mnuchin

orwi e"squawk box" at 7:30 a.m "wlddexchange" back in a couple minutes

welcome back to "worldwide exchange." i'm wilfred frost along with seema mody now to our must-reads. my pick is in the "wall street journal" titled "don't raise the debt limit repeal it. written by jason furman it reads for now the right move is to

eliminate the debt limit permanently that would let the treasury focus on the most efficient and effective ways to manage the federal government's cash flow, giving future presidents a freer hand no matter which party holds the white house, all americans would benefit from taking the threat of a u.s. default off the table. not only do i raise this because it's an interesting article but also because both joint co-writers are on "squawk box" later at 8:00 a.m. to talk about this it will be an interview that follows the interview with steven mnuchin >> i like that piece. my piece is titled "brexit in reverse." by approaching the negotiations that will start on june 19th in a conciliatory spirit, theresa may could reach an understanding with the eu on the agenda and agree to continue as a member of the single market for a period long enough to carry out all the legal work that will be needed this would be a great relief to the eu, because they would

postpone the evil day when britain's absence would create an enormous hole in the eu budget and that would be a win-win arrangement. >> mark carney has been speaking about that this morning. that's his dovish comments as well approaching the tom of the hour the team is getting ready for "squawk box. becky has a look at what's coming up. >> good morning. sorry. just turning my ifb up sorry. we have a lot coming up on the show this morning. you'll be joining us about an hour from now. some of the big headlines, we have steven mnuchin, the treasury secretary, he will be joining us to talk about a lot of different things including where we stand on tax reform how things are coming with potential budget and if we will lift the debt ceiling before congress leaves session it is an interesting question one he has been in favor of but others in his administration

have not been in favor of doing this namely mick mulvaney who says this may be something we should hold up and not lift the debt ceiling until we can get clarity on issues. that question of whether the debt ceiling should be lifted or not is one that is continually controversial. we have two guests joining us today. jason fuhrman and rohit kumar. one worked for democrats, one worked for republicans stle they have an op sed abo-ed abou they think the debt ceiling should been removed because it has become a political weapon. we'll talk about those issues. we have a lot of ceos joining us the ceo of caspar, the mattress company. questions about the ipo there. we have the siemens "usa today,"

huli ceo, and we have bob pitman, the ceo of iheart radio who joining us with ryan seacrest a lot of things we'll talk about. >> so much on the show, i can't wait to get over there and join you for it i'll be with you in a bit. i'll join you at 7:00. up next, forget f.a.n.g. what a market pro thinks could be the new market acronym. that when "worldwide exchange" returns.

welcome back to "worldwide exchange." let's get you up to speed on the market action. coming off big day of gains yesterday. we're seeing the rest of the world react positively we have about a third of a percent of gains for germany and france tech is outperforming in europe

as it did yesterday in the u.s germany, the dax hit a record high looking to hit a record close today. comes off the back of the german ifo institute increasing its forecast for gdp to 1.8 from 1.5. next year to 2% from 1.8%. let's look at asian trade, which did have japan in positive territory after a soft day for the yen yesterday. slight declines for hong kong and shanghai futures in the u.s. were positive by 0.2% they slipped a bit the nasdaq again outperforming it's up 0.15%. of course that comes off a day of 1.4% of gains for the nasdaq and desent gains fcent gains fod s&p. oil price s slipped yesterday. corporate earnings will be front and center with adobe

system and fedex reporting results after the bell as for data, first quarter current account deficit will be released this morning and look for commentary from the fed with eric rosengren and dallas fed president robert kaplan, both scheduled so speak and you'll hear exclusively from chicago fed president charles evans at 10:40 a.m. on cnbc. joining us now is thomas lee. good morning >> good morning. >> your new acronym for it's not -- it's not f.a.n.g. anymore. is it m.o.d.y. or w.i.l.f. >> it's cnbc >> that would be a good one. but no, it is -- >> it's not necessarily new. we just -- we've liked f.a.n.g we've been talking about a case for c.r.a.p. -- >> remindus what that is.

>> "c" is for chute omputers the resource sector, that's being pulled up by wage inflation leading to inflation "a," for the american based bank, and the flattening yield curve. and the "p" is for phone carriers >> what about the stress tests coming up in a week or so? >> i think the bigger story for banks is the roll back of regulations. it's been a big headwind for r.o.e. and difficult for multiples to rerate because of this overhang. i think the deregulation or lack of increased regulation is the story here >> if the stress test results are favorable, do you think bank also continue to prioritize capital returns? the dividend payout ratio still

much lower than other sector >> i think returning capital shareholders makes sense unless loan demand picks up that's not been a big growth story. >> at the same time, the outperformance in tech, there's a relentless pursuit for tech names. 24 times earnings. s&p is at 18 times earnings. why are investors overlooking valuation part of the story? >> tech is bifurcated. you take f.a.n.g. out, a.g. out of tech, the group hit 13 times. just those two stocks, amazon and -- >> yes but tech -- it makes sense to be wanting to own f.a.n.g. or f.a.n.g.-like stocks economic growth is not really picking up this year so if you're seeking growth, these companies generate tons of earnings, tons of organic

growth >> what about healthcare biotech did well yesterday the spdr etf gaining 4%. a cancer drug to clovis also helping the story. >> i think healthcare is bouncing back from last year because they were one of the worst groups, but one of the challenges is cpis did s didisn is being driven by healthcare. >> you spoke earlier about deregulation and the way that could help the bank sector in particular many people skeptical of when we see that delivered on. what is your estimate for when the trump administration can deliver on some promises volatility in currencies has picked up but that has not played into the equity market yet. >> i think legislation agenda has been pushed out. tax reform, healthcare reform are tougher things to count on but with regard to the banks, things like the epa, these are

more dependent on agency action. i think it's easier for banks to see deregulation >> even on that point, there's loads of posts that need to be filled before the deregulation can happen no closer to doing that either >> yeah. that's another good point. any time you rely on agenc staffing to implement something, that's where trump's administration can have some effect because if they don't fund, nothing gets done. nothing gets implemented i think it helps banks and net neutrality >> okay. great stuff. thank you very much for joining us >> tom lee of fundstrat. just about 20 seconds to go before we end the show i suppose all eyes on the tech sector if the nasdaq can continue the bounce back. >> fed speak from robert kaplan. >> and the british pound soft due to comments from mark

carney the futures market pointing higher the nasdaq the best performer. up 0.2% following 1.4% of gains yesterday. often reveals a better path forward. at wells fargo, it's our expertise in finding this kind of insight that has lead us to become one of the largest investment and wealth management firms in the country. discover how we can help find your unlock.

technology stocks rebounding the nasdaq posting the best day of the year. apple leading the way. a fum r a full rundown of the biggest movers straight ahead. >> georgia voters head to the polls today in the most expensive race in georgia history. and house speaker paul ryan vowing to pass tax reform by the end of the year. he has a big speech today. will it move the markets it's tuesday, june 20, 2017. "squawk box" begins right now.

♪ live from new york where business never sleeps, this is "squawk box. ♪ >> good morning, everybody welcome to "squawk box" on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with michelle caruso-cabrera. joe and andrew are off today we do have a guest host, steve grasso, a cnbc market analyst. >> good morning. >> good morning. >> ready to go >> of course i've been ready since 2:00 in the morning. got up early >> as we all have. >> let's look at the markets you'll see the futures are mixed at this hour relatively flat. s&p 500, those futures down by 2 points the dow and nasdaq are flat this comes after a day of record closes evens the majo