good morning we're following three major stories breaking overnight first, uber ceo travis kalanick is out after share holders stage a revolt we're live with the man who broke that story. a royal shakeup. saudi arabia names a new crown prince in a surprise power shift. while the fwloebl markets are ta global markets are taking notice. and the green light for china and msci it's the first day of summer, "worldwide exchange" begins right now. ♪

good morning i'm sara eisen >> i'm wilfred frost good morning to you from me as well first day of summer. >> first day of summer, some major stories overnight. felt like summer in new york for the last week or so. >> though it took its time to get here >> welcome to the new york humid summer >> very hot in london. >> is it >> yes lots of people complaining because they don't have air conditioning in london new york deals with it better. we will get to lots of those breaking stories yesterday we did have a little bit of a selloff, particularly inspired by oil prices the dow down 0.3%, but it hit an intraday high before closing down a third of a percent. s&p down 0.7 nasdaq down 0.8% we are called a fraction higher for the dow, fraction lower for the s&p and nasdaq things stabilized a bit. that nasdaq decline in percentage terms is bigger than others

futures, oil prices, let's look at those we did lose another couple percent yesterday. losing a bit this morning. but not too much 4 43.4 that oil price slide is front and center in peoples minds. >> as for the currency boards, the u.s. dollar broadly, the dollar index remains weak. trading near the lowest level since october. weaker against the euro, just fractionally weaker against the japanese yen. it is a bit firmer against the british pound. at 1.2609. >> ahead of the queen's speech >> is it a market mover? >> it's of note because of how poorly the election went it is when the government sets out it's agenda, it's voted on next week and that vote is crucial for theresa may to get if she fails without the support

of other parties, it's a vote of confidence and would have to go to another election. the queen's speech is very important. usually a bold, loud statement of clear legislative agenda for the year ahead it will be much reduced with no clear sort of outlandish claims within it. so, lots of focus on the queen's speech it will be reduced. the vote on it next week is crucial. >> coming on the day when the pound fell 1% after mark carney sounded cautious on the economy as a result of brexit. the asia board the highlight was the shanghai comp, with those mainland china stocks a decision to be added to the msci, could welcome more demand and interest in chinese stocks it happens may 2018, but clearly having an impact up a half percent there. weakness in hong kong and japan with the japanese yen firmer for a second day in a row. >> what's the market chap of china's stock markets?

>> trillions >> trillions but if the u.s. is above 30 trillion, what do you reckon china? >> 10. >> correct >> really? >> how annoying. >> hong kong and london tied where? >> 20? >> hong kong and the uk about 4. u.s. above 30, which i was amazed china is 10 clearly second place >> we'll hit that more and go to shanghai for a live report from eunice in europe, red across the board. perhaps we're following that in u.s. equity market futures france down a percent. germany down 0.6 the ftse 100 down a quarter of 1% it's doing better. teeing off of that weaker british pound. >> some banks in germany and france doing poorly after yields slipped a bit and undermining the global reflation trade story. bonds, 2.15% that's been where we've been for the last couple of weeks gold prices as well, up today.

they were down yesterday >> to some breaks news overnight. uber ceo travis kalanick is out after share holders staged a revolt joining us now on the cnbc news line, the man who broke the news, mike isaac, tech correspondent from the "new york times. tell us how this went down what type of investor revolt are we looking at? >> yes so i think essentially the five of uber's biggest shareholders from some of the earliest rounds of the company essentially had enough of the prolonged sort of scandals under uber ceo travis kalanick or former ceo and so they got together and essentially sort of put together a list of what i was told was four different demands the temperature of which was that he step down. travis step down as ceo. and others were to have better

governments on the board have different sort of directors being named. and then also to appoint new -- appoint a new cfo which they have been without for quite some time now and a few different -- i think one other one that i'm forgetting now those are the biggest ones >> did they have outright power to do this could kalanick have pushed back if he wanted in terms of the voting rights he has does this change the path going forward for the company, whether it decides to ipo or not will it have to break the mold of facebook and snapchat in terms of not giving shareholders voting rights on these decisions? >> yes you're exactly right as far as technically travis could have stayed on and could have fought this out one scenario under -- if he decided to not step down, this probably, as i was reporting,

this would have spilled out into the public, have been pretty ugly for the company, and the other thing is that might have shaken investors -- other investors, a wider pool of investors in the price of the secondary shares, how they're trading now. i think that they also took that into account i do wonder in the future what sort of government structures will look like for companies, especially you can see mark zuckerberg and aaron spiegel at snapchat and outside share and voting powers of the founders. but it's hard to see someone like mike travis as an anomaly, all powerful, all knowing, really important figure that can steer these companies to a good

version of the future. i think there's a lot of -- mark zuckerberg has a lot to do with that >> just to read travis' statement here i love uber more than anything in the world at this difficult moment in my personal life i accepted the investors request to step aside so uber can go back to building rather than be distracted with another fight. what does uber look like without travis kalanick? who could fill this void >> that's a great question the thing about uber is it is so intertwined with travis's personality, his -- he is uber he is really the person who is largely credited with bringing them to the size they are today. operating in hundreds of cities, dozens of countries. i heard different names floated publicly i have not heard of serious candidates just in my reporting in terms of who the board is talking about for ceo.

one of the other conditions was to immediately call a board-led ceo search that's on the agenda now >> great stuff, mike thanks for joining us on that story. mike isaac from the "new york times. breaking overnight, saudi arabia's king asking the sitting crown prince, his nephew, and putting his son, mohammed bin salman next in line for the throne the saudi all share is up on the news his son seen as someone who is a reformer, modernizer and the market has liked that change up 4%. let's bring in the head of commodity strategy at capital markets. >> i heard your voice in my head when i was reading the news overnight. i'm glad we're talking to you. mifrnlgts forga >> my favorite country yes. >> what's the takeaway this is a big generational shift in saudi arabia.

i used to talk about 70 being young for a crown prince in saudi arabia to have a 31-year-old crown prince is a decisive break with past practice. to move aside muhammad bin nayef, the counterterroism czar, the figure of the establishment, this is groundbreaking for saudi arabia the question is can mohammed bin salman deliver on his big reform plans? can he generate millions of new private sector jobs for young saudis >> the first question before that, the long-term question, can he survive what will surely be quite a lot of attempts to destabilize i'm or worse in the short-term before the current king dies this will upset a lot of people in the royal family. >> it certainly will upset a lot of people in the royal family but i don't think shoe ever bet against mohammed bin salman. when he was appointed youngest defense minister in 2013, people did not think he had a long

tenure ahead of him. he defied all the skeptics and look what he has done with vision 2030. they may not achieve 50% of it, but he said he would press ahead with the ipo of saudi arabmco. i think he will be leading saudi arabia for the next several decades. >> saudi arabia is trying to engineer a higher price of oil look like it's having trouble doing so, especially lately. what does it mean for global energy markets >> first i would say saudi arabia is committed to piloting this opec cut through. now the question is what is saudi's time horizon the ipo of saudi aramco is a to 2018 event so they can deal with some of these prices sit tight, let the cuts reverse.

i think they'll be ready for 2018 >> do you think we could slip below $40 from here on wti >> depends on where sentiment goes i think sentiment is ahead of fundamentals i think this market is much more constructive on supply and demand we are in a bear sentiment trap. i think there is the potential we could drift lower >> glad we found you in sydney >> a great live shot behind you. >> talking saudi arabia on "worldwide exchange. >> exactly >> thank you >> now to china, a long-awaited decision msci agreed to add mainland chinese stocks to the index. eunice yoon is in shenzhen tell us about the reaction to this big decision. >> in this case it was fourth

time lucky the msci finally decided to include chinese domestically traded shares into the all influential em index in theory this means foreign investors can get access to 222 high cheeinese mainland stocks. these are weighted in consumers, financials that's why we saw a rally in those stocks today the overall reaction was very positive the chinese stock markets rallied to a 1 1/2 year high the stock market regulator said this is a vote of confidence they said global investor confidence is building in the financial stability of the country and economic prospects and there's been a positive reaction we know the stock market regulators have been very, very encouraged by what they're

seeing from beijing's perspective they believe they have taken a lot of steps to make this happen. they established what is known as stop connects one is connecting the shenzhen market, where i am now to hong kong, which is a much more free wheeling market. and the shanghai market to the hong kong markets. that allows them to get more for foreign investors access into the mainland markets so the chinese are excited right now with what they're seeing even though there are a lot of restrictions still on this market they're seeing this as an important symbolic move. >> eunice, hong kong's stock index, much like london's, heavy international ownship. what is the percentage international ownership of the shanghai index people expect it to rise significantly now. >> it's 2% so, it's a really, really low percentage so for that reason there is a

lot of potential for investors to get into the market like i said, one of the main problems is that the chinese authorities, despite the efforts, still have not really built a lot of confidence among global investors that they won't interfere in the markets so because of that there's still a lot of restrictions and people are worried about getting money in and out of the markets. >> thank you very much shanghai up a half percent today. today's agenda we start in the uk where british prime minister theresa may and her minority government faces a big test as they open parliament back in the u.s. the latest read on the housing sector with may home sales out at 10:00 a.m. eastern. on the earnings front, carmax and winnebago before the bell and oracle after the close one other nuance of the queen's

speech, she usually opens it by confirming the state visits she will be making or other leader also be making to the uk >> we're listening for trump >> listening for trump she wouldn't confirm if it had been canceled. if she fails to say he's visiting later in the year, it looks to be cancel sglod still ahead, paul ryan promises tax reformulator this year c can he deliver. and the most expensive house race ever. we are live in atlanta with the top licapotil story. hi i'm joand hey you've gotta see this. c'mon.

no. alright, see you down there. mmm, fine. okay, what do we got? okay, watch this. do the thing we talked about. what do we say? it's going to be great. watch. remember what we were just saying? go irish! see that? yes! i'm gonna just go back to doing what i was doing.

find your awesome with the xfinity x1 voice remote. . republican karen handel defeating democrat jon ossoff in a high stakes special election for the georgia house seat john harwood joins us from atlanta with the latest. good morning, john >> good morning, sara. this was a big sigh of relief for the trump white house and the republican party after all the spending, more than $50 million by all sides and all the hype they held on to this house seat. it's been republican for a long time there are still big signs of concern looking ahead to 2018. they had to fight hard to win a direct that the republican who last held it, tom price, now the hhs secretary, won by more than 20 points. in another special election in south carolina, that got much

less attention, the democrat came within four points of beating the republican in the district of mcmulvaney, now the budget director. nevertheless, this is good for the agenda in the immediate sense because what that means is the jolt of fear that would have surged through the republican caucus had the democrat won this race is not there. it comes right as republicans are taking up their healthcare bill in the senate this will improve the odds, doesn't guarantee it, but it improves the odds that republicans will be able to pass their healthcare bill as well as their tax reform bill at some point later this year or next year >> is this a victory specifically for trump or for the mainstream republican party despite president trump? >> the latter, wilfred president trump is -- did not come up on the campaign trail for karen handel she did not talk about him

she mostly went around him the democrat, interestingly, didn't talk about him all that much even though the back drop for all of his enthusiasm, volunteers and money was the trump presidency this is a highly college educated direct, more affluent district, the kind of place trump is not at his strongest within the republican constituency this is more a victory for the republican political apparatus which rose to the challenge of this race. >> i'm not sure the white house is seeing it that way. kellyanne wins with the tweet, laughing my oss off. >> pronounces the word as i would as well. >> the british pronunciation it does show democrat also have a hard time turning opposition to president trump and his agenda into elek toerlt victoras doesn't it >> in some places yes.

but this is a very republican district the fact that republicans had to fight so hard to keep it tells you they have a difficult political environment. in the midterm elections, the party out of power in the white house always has momentum on their back the democrats are going to have more than usual this time because brup donald trump is so unpopular. they need to win unfriendly districts in order to win the house back they are on track for gains, significant gains in the house the question is whether they can get enough gains by winning in hostile territory to flip the house and make it democratic the results last night show they have not proven they can do that yet. that's encouraging for the trump white house. >> clearly donald trump is trying to celebrate this, various tweets on twitter. however had he lost this, would there have been a chance that it would have shaken republican

lawmakers into voting regardless for his healthcare and tax policies in order to protect themselves in next year's midterms >> i've heard all sides from both members of congress and consultants over the last couple of days. but i thinkcalming effect on the republican party and that's what republicans need right now. still to come, toshiba finally selects a buyer for its at s unit. thtory and the rest of the stocks to watch coming up on "worldwide exchange. 'cause different sides of you struggle with which ones to make. well, what if you kept making good ones? then? you could love your numbers. discover once-daily invokana®, a pill used along with diet and exercise to significantly lower blood sugar

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[sfx: buschhhhh] . fedex posting better than expected earnings and revenue. among the reason, higher rate sglos. adobe systems offering upbeat guidance on the cloud based suite. mike santoli suggesting another "a" should be added to f.a.n.g a british pronunciation almost >> like osso shares of lazy boy rallying after they increased their stock buyback authorization. still to come, big stories breaking overnight, including travis kalanick resigning over a

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good morning following three major stories breaking overnight first uber's ceo travis kalanick is out after share holders stage a revolt. and saudi arabia names a new crown prince in a surprise power shift. and china gets the grown light.

msci adding stocks to its listing for the first time it's june 21, 2017, and you're watching "worldwide exchange." ♪ >> good morning. happy summer welcome to "worldwide exchange" on cnbc. i'm sara eisen >> i'm wilfred frost good morning and happy summer to you from me as well. the morning market action before we hit the big three stories fut dlures after a day of declis the dow down a third of a percent. the s&p was down 0.7 the nasdaq down 0.8% we look like we have stemmed some of those concerns the dow and s&p essentially flat asian trade for you soft apart from china china getting a bump from the announcement that it will be included in the msci index. shanghai's foreign ownership only 2%.

that inclusion could make a material difference once they are included next year hong kong and japan soft softness in europe as well playing catch up to yesterday's selloff in wall street energy names continue to face some pressure as they have here in the oil price weakness. >> oil prices, after yesterday, wti dipped at one point below $43 a barrel officially into a bear market. 20% off the havenrecent highs wti is weak again this morning brent just below $46 a bar rechbarrel >> the ten-year, 2.15 is where we hit yesterday we dropped below there this morning because of the lack of inflation trade. we got super low yields on the 30-year yesterday which a lot of people were talking about.

as for the u.s. dollar, broadly weaker the dxy dollar index hovering around october lows. weaker against the euro and the japanese yen 111.12 firmer against the pound at 1.2609 gold prices are up for the first time in a few sessions there's some buying this morning. gold up 0.1% or $4 an ounce. uber's ceo travis kalanick is out after shareholders staged a revolt arjun ka p arjun kharpal has the latest >> we saw a lot of infighting at uber and that caused travis kalanick to step aside, the ceo. he has resigned but remains on the board. uber has been dragged through a number of controversies just in the past few months alone. it's in the middle of a lawsuit

with waymo, accused of sexual whatever r harassment in the workplace that added great pressure on travis kalanick to step aside the investors felt the same. now, of course, the search is on for who will replace him and what next for the company. >> so what are you hearing, arjun? who could lead the company and who will lead the search for a ceo? >> we understand, you know, ub he uber has some high level executives, the likes of arianna huffington, bill gurley who came out this morning in support of kalanick saying he will be in the history books as a great entrepreneur that board will lead the search now. we've seen a lot of high-level departures from uber already, but also other silicon tech companies, twitter as an example.

there does not seem to be a clear front-runner at the moment hopefully we will hear more noises around that over the next few days >> arjun thank you very much for that report from london. the other question that people are wondering, does this alter the potential ability to ipo if and when they want to. if that happens, one would think they would not be able to deliver the same restriction shareholder activity >> if it will be an inflection point in the way tech founders maintain control over their companies or is uber an exception? it's been a stunning fall from grace. >> stunning fall from grace, but privately listed, so we don't know but on the surface has not affected the valuation would have been great if we could follow this with live pricing. >> as a public stock >> get on the ipo. >> they need a few leaders and managers also out of saudi arabia, a

big shakeup within the royal family the saudi wing ousted the sitting crown prince, his nephew, and replaced him with his son, mohammed bin salman this puts bin salman next in line for the throne. salman the much younger 30-year-old crown prince who has been front and center for the economic reforms the saudi 30-year plan, as it were, wanting to diversify the economy. the stock index in saudi arabia up 4% on the news welcoming his elevation. >> as far as what it means for oil, we asked alima croft earlier. she said saudi will hang tight for now. not worried about these falling prices but maybe into next year you will see a renewed effort from saudi arabia this is according to croft, to get prices, as she termed it, on a better trajectory. we'll watch oil prices which continue to fall this morning. big news on china breaking

late yesterday msci a officially agreed to add chinese mainland stocks to the benchmark emerging market endisc, this afterendisindex. got to speak to the head of global indexing and asked what changed this time around >> a few things were different the stock connect program linking the hong kong market with shanghai and shenzhen is effective. they were able to -- we were able to consult with clients and our clients thought that was a good access into the market. the second thing is the rediction duck shr reduction of the number of suspended stocks, less control, more availability of shares. and the loosening of the restrictions on the data in order to create index linked investment vehicles. >> all of that they say makes it

safer for investors to get into chinese stocks that was henry fernandez, the quhachairman ando of msci. >> i think the potential for china to see a massive uplift in foreign investment is huge but does the overarching rule change of an indexing company increase investors to think, okay, i'm going to invest this time a vau clearly there's a bit of a gap to close but that evaluation gap was much bigger five years ago. >> i'm not sure the psyche of investors matters much we're in an indexing world so many people are in indexing

funds. that's a driver of market action just the mere inclusion, whether investors are bullish on china or not, worried about capitol controls or not will drive demand and money >> on pure market cap basis, which is how msci will do their index, they get a big weighting. they're over $10 trillion in market cap, with shanghai and shenzhen the agenda today we start in the uk, prime minister theresa may and her minority government will face their first big test as the queen opens a new parliament session. she begins her speech at 6:ta a.m. the key thing is if she confirms whether president trump will have a state visit the key thing for the uk is a vote on that speech next week. if theresa may fails to win that, we will likely head for another election in the u.s., the latest read on housing with may existing home sales on the earnings front, carmax and winnebago before the bell and oracle after the close

president trump is headed to cedar rapids, iowa where he will talk tech's role in farming and agriculture and hold a rally later in the evening. shares of fedex on the move after the company reported quarterly results last night landon doubty h y daud y dowdye details. >> the shipping giant posting gains, and sales beating expectations in most categories including express, tnt express and freight. this as fedex continues to reap the benefits from the e-commerce boom on the earnings call fedex predicted they are considering surcharges to offset higher korses daughtkors costs during the holiday season. shares of fedex have been on a

tear lately. more than s13% year to date >> outperforming its rival u.p.s., which is down for the year. coming up, alibaba's jack ma talks about the rise of robots more of his exclusive comments to cnbc la-z-boy ahestraight ahd we have extended the losses, nasdaq down almost a half percent. the dow fractionally down a tenth of a percent

welcome back to "worldwide exchange." breaking news on uber. the company's ceo travis kalanick is out after share holders staged a revolt. joining us on the cnbc news line, re/code's cara swisher your story full of good details. tell us what you could tell us about this shareholder revolt and how it went down >> i think things have been building with travis, people are unhappy with him staying on even from a leave of absence point of view, because it was unclear what it meant. there was a debate with arianna huffington who feels like he could be redeemed, come back and it could be a better company

people were concerned about what happened previously, the lawsuit with waymo i think these investors above all were worried about their investments even though they've been complicit in the behavior before it's kind of ironic these are the people who sold him out because they were the people who tolerated this behavior. >> kara, traditionally investors in silicon valley companies don't have that much power to oust the ceo do you think this is a seat change moment for companies that will see increasing voting rights of minority shareholders moving forward or is this an uneun uber specific issue. >> i think they have more power than they want to let on what they don't do is they don't want to rock the boat. in a lot of cases it's not true

that they don't have power, they do have leverage, which is the thing we wrote about in this case there were so many different things not just the sexual harassment issues, there was retaliatory behavior, lack of an executive bench, anybody who is make tler anymore. this idea around the lawsuit with alphabet which was looming. that this ceo is not the ceo to take it public >> so the board has to expand the search to now include ceo as well can you give us names, industries they're looking at specifically >> transportation, anybody who is a really strong ceo could do this they have to find somebody who is innovative and can pivot in this fast changing industry. there's a lot of competition in the future with self driving

cars they were looking for a coo, a different job than a ceo one problem with the coo search is a lot of team they were tapping wanted to be a ceo it will widen the group of people they can look at now. what an interesting opportunity for a lot of people. they had originally talked to stock market stacks of disney, ceo of disney. he is experienced in running large theme parks, major complex operations but there's a bunch of various executives in transportation would be one, cars, any of those areas i think you'll see a lot to of candidates i think they will take longer to pick this ceo. >> ka wwhat do you reckon this l have done to uber's valuation. shame we don't have a police to look at. what percentage would it be lower than yesterday >> i think it's down i think people have been reporting secondary sales, it's close to 70 billion is what it was valued at in the last round.

it dipped somewhat a lot of things uber has, brand is one of them the brand has been tarnished the question is can they get it back and be aggressive without the aggression seeping into the culture in an incredibly toxic way as it did here >> kara swisher, thank you very much >> that story on re/code is a must read. there's tidbits that you kill someone far later than you should have and then praise them more than 3,000 u.s. small business owners are gathered in detroit today to pitch their best ideas to alibaba. david faber saturday down with jack ma at the gateway 2017 conference talking about the rise of technology and the impact it's having on business listen >> it's about wisdom, about

experience i don't think that the artificial intelligence is going to replace the wisdom. >> i continue to wonder what that world will look like over the next 30 years. >> will be painful because the knowledge is not enough, the wisdom is not enough jobs have been ticking our way some people who catch the wave will be witch, more successful some people more painful the government -- the world will be dated the people will now have more data than the bosses >> you can catch more of that interview with jack ma at 9:00 a.m. eastern on squawk on the street always entertaining. >> and so much tech action >> and alibaba stock has been strong >> exactly >> we are approaching the top of the hour the team is getting ready for "squawk box. becky quick joins us >> heard what you had about uber i heard that on npr, all the

things kara swisher was running through. we'll follow that. and we'll talk about tax reform. yesterday we spoke with steve frn enou n mnuchin, about what was happening, then gary cohn signaled the administration will have atax plan ready to go the first few weeksof september. today we have a lot of guests on we'll speak with kevin mccarthy. also representative jim jordan who is a member of the freedom caucus then we'll hear from the senate side of things we have senator marco rubio on as well as senator chris cumes we have richard fisher on. he will talk to us about what the fed's next moves might be. when we might see rates continue to pick up or if the fed will step back and try to tighten up

the balance sheet. talking more with the ceo of gerber as well he will sit down with us gerber has an sgresing interest position i was a gerber baby, sara, were you a gerber baby? >> i have no idea. probably >> i'm sure i was a gerber baby, but i don't feed my baby gerber. that's the issue they have to deal with we'll talk about the issue of organic food and how they battle in that space. all of this coming up in a few minutes. >> very nice look forward to it. >> you have to ask senator rubio about where his investigation has led into the failed hug of ivanka that's ongoing >> thank you. coming up, setting you up for the trading day ahead. futures are under pressure the dow has popped higher. it's been flighting with higher. >> that nasdaq decline is almost a half percent another tech slide in the premarket. more on that coming up on "worldwide exchange.

welcome back to a busy "worldwide exchange. i'm safe safe hera eisen leer wd frost. the s&p and dow saw their worst session yesterday since mid-may. joining us is michael purvis at weeden and company are we due for a healthy pull d pullback from another set of record highs >> the whole year has been four steps forward, one step back on to the next one no question that valuation is getting stretched. i don't know if there's a catalyst in the immediate term that will all the of a sudden se have to correct 5% and march on from there having said that, the thing that i'm focused on now, is that i think overall earnings expectations for the s&p 500 right now, you know, if you look at consensus forecasts, 130, those are extremely elevated

given the pace of where gdp is headed now as we get into the second quarter, we are really exposed to some potential, significant earnings downgrades. i took my estimates from 127 down to 116 just yesterday >> so q2 earnings season is the catalyst for how big a pull back 5% >> yeah. i think 5% what you may seeing is more of a range bound condition with dips and higher volatility along the way. >> saw weakness in dow transports yesterday is that an oil related story or something broader and more wo y worrisome about growth >> you want to see the transports continuing to march higher industrials in line with that. if the transports fail to make a new high here, you will -- that will be one more worry point for the market there's a lot of constructive

things with the technical market now, but that is one more yellow flag to look at. >> oil prices a step forward if we drop below 40, would that be a big worry for the rest of the market energy is down way more than anything else. >> but if you look at sort of oil and spx correlation right now, they are at almost record lows they're strong, just in a negative way you know, scroll back two years they were high these coreratiextreme correlati not to stay on for that long i would expect that you will start seeing the really sort of that feed into the risk sentiment there. >> how do you know when oil or energy shares are a buy? whether it's a tradable bounce or whether they have just fallen too far? >> in the work i've done right

now, just talking about energy shares right now, if you look at what is expected by consensus forecast, it basically is implying $63, $64 oil average price for the year that's clearly too high. year-to-date average is 50 >> heading south >> we may be lower than that to my mind i think energy shares underperformed oil all year as well as the market the question is will the sell side an lerss taalysts take ther down for that sector on oil itself, i would say, look, near-term target 40. if we go below that, that's where you will start seeing that correlation with the broader equity starting to get positive again. >> michael, thank you very much for joining us michael perves of weeden and

company. >> one thaeng you're wating you? >> i think tech stocks >> the ndadoasq wn again in the premarket at this stage. "squawk box" is next hi. hi. you guys going to the company picnic this weekend? picnics are delightful. oh, wish we could. but we're stuck here catching up on claims. but we just compared historical claims to coverages. but we have those new audits. my natural language api can help us score those by noon. great. see you guys there. we would not miss it. watson, you gotta learn how to take a hint. i love to learn.

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breaking overnight, uber ceo travis kalanick stepping down. the details and the future of the company straight ahead. republicans sweep. the gop winning both special elections holding on to two congressional seats that were up for grabs. plus a power shift in saudi arabia the king naming a new crown prince and ousting his nephew in a surprise shakeup it's wednesday, june 21, 2017, first day of summer. it's the longest day of the year, becky? is it? >> daylight, time of the year, not the 24 hours, no, no, no >> 26 or 27 hours becky tells me >> longest daylight time of the

year >> oh. the same -- okay >> and the longest read of the year >> same length >> "squawk box" begins right now. live from new york where business never sleeps, this is "squawk box. more daylight. good morning was it light when you went to bed last night >> yeah. >> yes exactly, right it's light the sun was still out. okay it is the longest day of the year -- >> 24 hours. >> we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and melissa lee joe and i have been debating this the last 15 years >> so you're not saying 26, 27 years. >> more daylight ever. >> longest day >>