good morning back to business u.s. stocks resume trading after starting off the quarter in the green, except the nasdaq which looks like it could be down again today. and north korea raises the stakes u.s. officials confirmed they fired their first intercontinental ballistic missile. plus it's mrelectric volvo goes where no carmaker has gone before. we'll bring you details of their ambitious plans. it's wednesday, july 5, 2017

"worldwide exchange" begins right now. ♪ good morning welcome to "worldwide exchange" on cnbc. i'm sara eisen >> i'm dominic chu in for wilfred frost. >> welcome good to be here. >> he made it through his bike ride >> he did. the pictures are on instagram. congratulations. >> success it looked really hard. >> it did. you have to be in shape to get through something like that. >> he trained a lot. hard core training of new jersey >> there you go. >> he made it to monaco. let's check in on the global markets. u.s. equity futures starting off after a holiday closed day yesterday and a half day of trading on monday. dow futures up about 15 points s&p futures down and nasdaq futures are under some selling pressure this morning, down 21 tech underperforming even though we got a big rally on monday during that half day of trading. we'll talk about that in a moment ten-year treasury note yield,

higher higher yields last week. higher yields on monday. that's the dominated theme they're going higher again this morning. watch this carefully, the speed of the move is something that is catching people off guard. is it too fast is it what's disrupting the tech rally? 2.3 2.35 is what we're looking at here >> weather wa >> we're waiting to see whether we can break that down trend >> look at the tick up recently. >> correct that's in the last five, six days whether or not you can get high enough to break that down trend, medium term will be key. a lot of folks watching. >> has all sorts of effects for stocks helpful for the banks which have been praying for the yields. hurtful for utilities and telecom. so far it looks like it's hurtful for big cap tech stocks. at least a chance to cash in profits. they're still the biggest winners of the year. >> tokes are talking about that mini rotation going on

>> so, a lot of news coming outokumpu oout from asia overnightovernight policymakers will meet next week the central bank could be retreating from kuroda's pledge to do whatever is necessary to achieve his inflation targets. those key words did have effect back in the day. the whatever it take sides s si things kind of like mario draghi. >> china's central bank says the country's shadow banking sector lacks regulation in an annual report just released the pboc says it will make sure the economy has no systemic financial risks they say the economy faces big downward pressures as a result it's pledging to create a favorable monetary and

financial environment. overall, if you take all of that on balance, asian equities did see a reaction we're positive to close here for the general part the nikkei up by a quarter of a percent. the hang seng up bay half percent. the kospi in south korea up a half percent given what happened with that icbm >> gold will be something to watch oday so far it's really shaken off the news, like it does so many times. >> every time. it's been that way for the last couple of year sflos. the european commission has given the green light for the bailout of banca monte dei paschi regulators approving the plan after the bank agreed to ab overall including capping pay for senior employees and transferring bad loans the lender will cut around 600 branches look at european equities early this hour. a bit higher the german dax is up more than

0.1% double that in france. italy underperforms on that bailout news down 0.3%. and spain is higher. do have the tech shares under pressure following the lead out of the u.s. other groups are higher. i think automakers in asia helped the trend some commodity producers as well >> calmer fractional moves for sure let's take it to the more macro picture. those broader markets. oil is a big focus wti crude down by a percent and a half 46.4 1 the last trade there. ice brent crude, 48.95 as for what's happening with currencies, let's look at the euro you can see at least some moves with the euro. some dollar strength euro weakness 1.1338 is what it will cost to you buy a euro the yen at 1113.54

and the pound 1 t.2905. and gold, 1,222. >> the u.s. military officials confirming north korea did fire its first intercontinental ballistic missile. a big escalation in its nuclear standoff with the united states. the u.s. condemning the test firing warning missiles and vowing to hold the regime accountable at the united nations. the u.n. will hold a security council meeting later today. the missile is believed to be two staged with a range to reach alaska the front pages this morning, "usa today," north korea missile provokes the u.s. on fourth of july nation tests icbm that could reach alaska >> the u.s. military is saying their relationship with south korea from a military defense standpoint is ironclad so kind of the rhetoric ramping up >> just here last week >> a lot of that stuff will play into the markets >> also president trump goes to

g20 this week. he meets with all the nations top leaders. think he wants to talk trade, but north korea will dominate at this point after this escalation >> let's get into that a bit on the political side of things, president trump is leaving for poland this morning for his second foreign trip since taking office he will visit warsaw ahead of the g20 leader summit in hamburg, germany on friday where he will have his first face-to-face meeting with russian president vladimir putin. in poland president trump will give a major speech and attend the three seas meeting for talks on developing ties in energy and infrastructure overall a big europe trip, but you get a feeling that trump will be talking a little bit about north korea as well. >> that will be the first big foreign policy challenge that he faces. now to some corporate news volvo says every model from 2019 onward also have an electric

motor. this will make it the first traditional automaker to stop making vehicles powered solely by an internal combustion engine volvo says it will only produce three types of cars, pure electric, plug-in hybrids and mild hybrids which combine a small gas engine with a large battery. uber has suffered a new legal setback in europe. an adviser at the court of justice at the eu says france is entitled to charge local uber managers with running an illegal taxi service the court will make a final ruling later this year uber is playing down the non-binding opinion say it only applies to services using unlicensed drivers known addrs r pop which has since discontinued uber under the microscope for a

lot of things. monogram residential being acquired by graystar growth. that deal valued at $2 billion. ten cent holdings feeling the heat over the handling of the popular game honor of kings. this after the firm said it is limiting play time for users of the game shares of world play on the move after reports of a potential takeover the uk payment processor receiving rival bid approaches from credit card tech firm vantiv and jpmorgan. >> some more stocks to watch two u.s. activist investor funds are looking to derail clariant's merger with huntsman co corvex taking a stake in clariant in an effort to fight the deal clariant shares off a bit. huntsman up 1.6%

samsung electronics investing 18$18.6 billion in soh korea in the hopes of extending its leading memory chips and next generation smartphone displays while promising to create almost a half million jobs nokia and xiaomi signing a patent deal which includes a cross license to each other's cellular standard patents. martin shkreli's defense attorneys objecting to the prosecution's request for a gag order during his client's fraud trial. ben brafman blaming reporters for baiting shkreli to publicly blast prosecutors. when he walked into a room, reporters used to monitor video

from the courtroom and started speaking with them criticizing their coverage and commenting on the evidence against him shkreli only stopped when brafman came and asked him to step outside in a lert to ttter to the judge, brafman says he is being targeted not because of his conduct but who he is seems like he can't stop speaking unless his lawyer shows up by his side. >> you wonder whether the billable hours include some of these supervisory things for him. >> hence the request for a gag order. >> there you go. turning to the agenda on wall street, there's a pair of economic reports today you have may factory orders out at 10:00 a.m. eastern time at 2:00 p.m., we get those big fed minutes. the last month's federal reserve meeting when the central bank hiked interest rates for the second time this year. those two big item algites will sobi items will have a bearing on

trade. >> we're watching technology and the key leadership position, that's down or up lately watching treasury yields this commentary out of the fomc with their minutes could have an effected on what's going to happen with the -- >> they're kind of in a predicament. stocks at a record high, the economy is doing okay, but not many signs of inflation, can they keep going raising rates, shrinking the balance sheet? >> like you said, interestingly enough you have interest rates generally on the longer end of things moving higher over the last five, six days. >> the question is why >> is it growth -- >> i think it's europe and the rest of the world's central banks sounding more upbeat it's been one global trade no >> could be. >> that's what we're watching today. coming up, the latest on the qatar crisis as arab nations prepare to meet in cairo a live yorechm haex nt. u' wating "worldwide exchange" on cnbc.

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hey you've gotta see this. cno.n. 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. welcome back to "worldwide exchange." if you're just waking up or working your way into work, let's get you up to speed on the market action. the dow jones is pretty much flat no movement yet. the s&p is pretty much flat. the notable exception is the nasdaq, off by a third of a percent. seeing more weakness in the tech related stocks watching that for sure also the oil picture, we are seeing some weakness there a percent and a half, now a percent and a quarter to the

down side. ice brent crude futures off by a percent. $49.07 the last trade there. back over to you moody's downgrading qatar's economic outlook this coming ahead of today's big meeting between arab nations where they plan to discuss the ongoing diplomatic crisis in the persian gulf willem marx is in doha he's been following this story for us good morning >> sorry, this is not a surprise for moody's, even before this crisis they cut the country's debt rating back in late may we had similar moves from s&p and fitch placed them on credit watch last month the qataris have been pushing back against some of these accusations from the saudi-led bloc in particular on terrorism financing. yesterday we heard from the foreign minister he was talking with the german foreign minister here, he says that they already took concerns about terrorism finance very

seriously. let's take a listen. >> translator: it is an important state matter for us. as for the security of the rest of the region, but it should not be raised amidst a blockade a boycott of qatar and while taking illegal measures against the state of qatar, all under the banner of fighting terrorism. when there are measures closed in this context, because they think they will be met with international sympathy because they're anti-terrorism measures. >> he talks about international sympathy and we heard from u.s. president donald trump, he insinuated in a tweet about qatar's financing of terrorism here in do hha, we've seen a hu amount of support for the amir there is a great dole of sol eaf solidarity for the leadership

her here >> we'll see if there's impact on the energy market willem marx, thank you for that report lawmakers in the european union backed new tax rules the changes will force multinational companies that operate in the region to give details on where profits are made companies ranging from google to amazon would be forced to publish profits and tax bills from each eu country where they do business. they would also have to provide information such as employment numbers proving they're not running shell companies. however the european parliament will allow authorities to grant exemptions in cases where information would put a company at a disadvantage with competitors. saba capital is closing its office in the uk this is the hedge fund known for its winning bet against the jpmorgan trader known as the london whale reuters says the 1$1.8 billion firm will move to new york this is the second u.s. fund firm to do so this year.

the reason for saba's move is unclear but comes at an uncertain time for hedge funds based in brittain as the country begins those brexit talks. certainly we're watching here. still to come, the president is about to embark on hits second foreign trip since taking office what's on the agenda and what's at stake as he meets with world leaders? a live report from washington straight ahead. as we head to break, here's today's national weather forecast from wnbc >> good morning. happy wednesday. we are looking at a stormy weather picture across the southeast for today. showers, locally heavy thunderstorms, so factor that into your plans for today. extra time at the airports, extra time to travel on the roadways this is the big story here the heat and humidity across the southeast. temperatures in the 90s here for today. meanwhile, the rainfall from these storms will be impressive.

one to three inches of rain. we could see some pockets of flash flooding that's one thing you'll want to take into account for today. the northeast is looking good. upper 70s to mid 80s some triple digit heat across the stwe more "worldwide exchange" when we come back

welcome back this is becoming a familiar pattern, where you see strength

in dow futures, s&p is flat, but nasdaq is under pressure the tech-heavy index showing futures down about 22 points this was the story of the half trading day on monday as well. tech underperforming groups like energy shined, having energy stocks having their best day in a month on the back of a 1.5% gain in crude oil. that's giving a little back this morning. as for the ten-year treasury note yield, higher yields continue to dominate the trading action that's the story over the past week and a half. 2.35 is the yield. the bigger market mover this afternoon will be the fed minutes released at 2:00 p.m the notes from the last meeting about the discussion on whether they're going to continue to ta tighten policy currency market, strong dollar against the japanese yen a little bit against the euro. more pronounced against the yen. the pound is flat at 1.2918. the gold prices are a little bit higher

some risk aversion buying of yen initially in gold on the back of those north korea headlines. that's reversed a bit against the yen. >> so business travelers listen up making headlines, the middle east largest airline says the ban on laptops and large electronic devices on flights to the u.s. has been lifted emirates which is based in dubai said in a statement new security measures are in place. turkish airlines tweeting it's been exempted from the ban saudi airlines has said it hopes to be off the ban list soon. the u.s. imposed the laptop ban in march on flights from ten airports in the middle east. president trump is set to embark on his second trip to europe since taking office today. the world will be watching as he meets with the top leaders tracie potts joins us from washington with more on what's on the agenda. good morning >> well, that agenda starts in poland a friendly nation for the united states the president heads there first, hoping to build some good will

going into what so be cob ten shus talk contentious talks. today poland is preparing for the arrival of president trump. he will join a conference of tr central european and baltic nations and give a speech in warsaw to reassure nato allies that america won't abandon them. that could come up at a much anticipated meeting with russia's president at the g20 summit on friday their first. the white house says there is no official agenda. okay so let's tell you a bit more about that at the g20 the big question is whether or not president trump is going to bring up this issue of russia's involvement in the u.s. elections some say interference in the election it is sort of the elephant in the room but it's also a tense topic when they have things like syria and

ukraine to discuss it's the first time the two will have met face-to-face. with all these investigations going on in washington, over russia and possible ties to the trump campaign, it's an open question as to whether or not the president wants his firsthand shake, sit-down with vladimir putin to include these allegations that putin tried to interfere in our election. so that is really the big focus of the g20 even though there are a number of other important issues that they'll discuss including this latest missile test by north korea that the u.s. has confirmed was that longer range intercontinental ballistic missile. >> and with the u.n. meeting today. thank you, tracie potts. europe and japan quietly making a trade deal. >> yes >> i will hit that in my must-reads. still to come, the top stories and a check of the markets overall. plus a hot dog eating record we'll tell who was named chowing

champion >> same person every year. >> how many hot dogs he scarfed down stay tune, you're watcnghi "worldwide exchange. hi i'm joann

good morning global equities shrug off geopolitical concerns. new this morning, president trump is leaving for his second foreign trip his european agenda coming up. and outsocked. we'll tell who put his best foot

forward to upstage sharp-dressed canadian prime minister justin trudeau. it's wednesday, july 5, 2017, you're watching "worldwide exchange" on cnbc. ♪ good morning welcome back to "worldwide exchange." i'm sara eisen >> i'm dominic chu in for wilfred frost. let's show you the picture of the global markets. mixed one for u.s. equity futures. dow futures are positive s&p futures are flat and nasdaq futures are under pressure again down 23 points in the session. if you missed monday's trading action it was a shortened trading day. tech underperformed, energy stocks and banks outperformed, helping the dow fuel a nice rally up to a record high. didn't close there the russell 2000 index did close at a record on monday. we will watch that in today's session. part of what's dominated trade

has been a higher treasury yield. ten-year note yield jumping all of last week on monday and continuing this morning. take a look, 2.35. dom asked if we'll break out of the range. we'll get the fed minutes at 2:00 p.m. eastern time >> could be a catcatalyst >> what seemed to change, you had more global fed speak talking about upbeat markets, end of deflation, not even hinting they would be raising rates. >> rates globally-the whole global rates picture, not just in the u.s. but in europe, asian markets, all of a sudden you have this idea, it wasn't that long ago, you and i were talking about negative interest rates in places like europe and japan you see this slow tick higher. >> how many fake-outs have there been of central banks fi s fina

tightening >> we all taught the ten-year would go to 3%, it made its way towards 2, and now back up to 2.35 this is -- the commentary from the fed will be a central point in whether or not that rate picture does continue higher >> we will see >> let's turn to the european markets and the asian markets. we did see some strength here in what happened on the heels of what happened in north korea the nikkei up by 0.25. the hang seng and hong kong, up by 0.76. as for what's happening in europe, you can see a bit of a mixed picture. fractional gains and losses across the board the dax just about flat. the cac in france, up by 0.1%. the ibex and ftse in italy down fractionally so far. it's been a story of strong oil prices they jumped another 1.5% on monday giving some of that back this

morning. down 1.3% for wti crude after marching higher eight days in a row. 46.44 is the wti price. as for the currency board what stands out today is strong dollar against the japanese yen. a reversal of what we saw overnight. initial risk aversion on the headlines out of north korea led to some buying of yen. that has gone the other way. perhaps fueling global equity strength we saw that in japan, asia watch that dollar/yen setting the tone dollar is a bit firmer against the euro it's been the story of a strong euro higher yields. more talk of better conditions in the economy gold prices are firm their morning off the session highs on the risk aversion from north korea.

today's top geopolitical story, the u.s. requesting an emergency u.n. security council meeting today. u.n. ambassador nikki haley and her counterparts from japan and south korea requested the gathering as they want to address north korea's intercontinental ballistic missile launch analysts say the missile could put alaska in the range for the first time ever. late yesterday the u.s. military said u.s. and south korean troops fired missiles into the waters off south korea in a show of force these headlines will have a ripple effect. but like you pointed out the geopolitical concerns across the world have been largely shaken off by markets globally >> i think this is a question. in my conversations the last few weeks with portfolio managers and investment professionals, i ask what can throw off the markets, stocks making new record highs this is cited as a big risk

factor i don't think people know how it will play out yet. >> many traders i speak to cite north korea as the biggest geopolitical concern it does trump things like syria -- >> i don't think we've got there yet, but with this new escalation, this is worth watching president trump will leave for poland this morning for his second foreign trip since taking office he will visit warsaw ahead of the g20 leader's summit in hamburg, germany on friday that's wer will have his first face-to-face meeting with russian president vladimir putin. first in poland, he will give a major speech and attend the three seas initiative summit talk also focus on developing ties in georgenergy and infrastructure. foreign ministers from bahrain, egypt, saudi arabia and the uae are meeting in care

radio todcairo today. today is the deadline for qatar to accept a list of demands or face further sanctions that news in the middle east playing a role in the news flow. the eu approved italy's $6 bui billion bailout of banca monte dei paschi this after monte dei paschi agreed to a major overhaul. an ambitious announcement from volvo the company is planning on phasing out gas powered cars this will make it the first traditional automaker to stop making vehicles powered solely by an internal combustion engine

disney channel's ratings have fallen about 4 million s subscrib subscribers. the channontent lacks popularit according to the article they say they are trying to improve programming and a shift to online platforms. spacex may be ready for its third attempt at launching the falcon 9 rocket tonight. the air force approving a 7:35 p.m. eastern liftoff we don't know what caused the firm to cancel the attempt on monday but remember this is such a -- it's fun to watch. only because it could mark that next evolution in our space exploration program. >> and to see who get there's first, bezos, musk, blue origin. nokia and xiaomi enter into a deal

which includes a cross license to each other's cellular standard patents an oracle was upgraded by keybanc. and monogram residential trust has agreed to be acquired by greystar growth and income fund under the deal monogram stock holders will receive $12 a share. there's a pair of economic reports today on wall street you have may factory orders out at 10:00 a.m. eastern time at 2:00 p.m., we get those big fed minutes. the last month's federal reserve meeting when the central bank hiked interest rates for the second time this year. those two data points could be big in terms of setting the tone for the day. >> we want to see how they're reacting to inflation expectations which have been falling. for a while it was the bond market doesn't believe them on inflation. >> they didn't >> they didn't

but that's reversed in the last few days we'll see what the fed officials say. >> could set the tone for sure. moving on to the top trending stories joey chestnut, winning yet another championship at the annual nathan's hot dog eating contest. that's what you're seeing. there chestnut set a new record putting away 72 hot dogs and buns >> turn off the video. i can't watch it this is his tenth career title for the contest. 72 hot dogs. i could see eating over the course of a week, the guy did it in ten minutes >> a week? you shouldn't eat that in your entire life. you know i like hot dogs i used it as a must-read -- >> ten hot dogs a day is ambitious, 72 -- >> it's a super human feat the uk embassy getting in on some fourth of july fun. the british embassy tweeting this gift of emma watson with the caption of being british in

america today, #fourth of july the tweet was followed up by another message reading happy fourth of july to all our american friends they were trying to be ironic? awkward? make fun of the u.s. i don't know socially awkward if wilfred was here i would -- >> you would lambaste him.trude internet's king of socks may have competition during a press conference in dublin, ifrld, the prime minister there unveiled his own pair of novelty socks complete with mounties and maple leafs on them he then presented true due wide irish themed socks and an ireland rugby shirt. this is like the jersey swap that you see in soccer/football in other parts of the world. >> you know, you always say these leaders come and visit the

white house, they have all these prepared goodies for trump, knowing what he likes. >> what would the u.s. give other leaders? that's what i want to know u.s. flag socks? i like socks >> apple may be looking to replace your phone's fingerprint scanner. the feature may be replaced with 3-d facial recognition various other reports say apple is testing whole face 3-d scanning my iphone 6 is cracked, i'm not replacing it until i see what the next iphone 1 >> that could be cool, picking up your face and unlocking the phone. it never picks up my fingerprint correctly. >> i can't believe we didn't do trending chris christie. this was the story of the weekend. spending the day at the beach he closed >> if you're a new jersey beach goer you should have a look at

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welcome back to "worldwide exchange." i'm sara eisen here with dom chu. time for our must-read stories my pick is in the "the financial times" titled an eu japan pact shows how free trade strides on.

a closer look at discussions which could culminate this week between europe and japan to ink a free trade deal. the fta will stand as a powerful rejection of donald trump's protectionist posture, just as the u.s. president arrives in germany for the summit it will also highlight the challenges facing britain, a hard brexit would leave uk companies in some seshgts worse on trade terms with their neighbor europe than japanese competitors halfway around the world it's the more protectionist stances of brexit and trump, they're saying it's thriving, it's moving on if they can get this deal done, it will make a strong statement. and you have germany and china, two big trading partners independent of each over and the u.s. trying to get together and talk about their trade deals there's a lot of stuff happening

on the sidelines not just the forefront of the g20. >> it's also a testament whether the u.s. can ink these bilateral deals, instead of multilateral deals, waiting on that we know that commerce secretary ross is working on that. my pick is in the "washington post." it's titled "america badly needs relationship counseling. while a national political system is not quite the same as a marriage, it's built on the same foundation, a commitment to shared values, positive approach to conflict, strong communication, perhaps for our 242nd anniversary we can trade a few horsemen for an attempt at harmony, our relationship may be on the rocks but it's worth saving the rest of the op-ed talks about the idea that in marriages there's a study done about how marriages work 40 years worth of data does that same stuff apply to a

country? they're trying to take those principles and see if we can improve communication, consensus build. >> we near marriage in the age of social media. >> i don't know if i want to do that. we're approaching the top of the hour the team is getting ready for "squawk box. joe kernen has a look at what's coming up. were you on the jersey state beaches this weekend >> that wasn't me. i think that was -- that was chris christie >> right >> talking about that. >> we saw the impressive stand sculpture in seaside heights they made of him >> it's in the post, joe >> i'll check that out >> i was thinking about chris christie, just almost -- it's almost shakespearean i don't know how that happened i think he has -- i like him i always liked chris thought he did a good job in certain respects but he was the man of the hour four years ago, 4 1/2 years ago. could have had it all.

people begging him to run and romney wasn't going to be the guy. then just the way things turn around unbelievable i think there's life lessons involved there you have to maybe seize the moment i'm worried about north korea. i don't know if we're in front of something, this great life we have celebrating yesterday and watching fire works at the local high school. it makes me wonder the world is a dangerous place this brings it home as for what we talk about, friday is jobs day everybody is arguing with us on set about whether we're at full employment or whether the lack of wage gains shows that it's not really the same type of employment situation that we've always had in the past maybe there's still some slack i don't know what to believe at this point now i'm worried about disney one thing here that i like, apparently neilsen measures an age group from age two to 34

when i read that -- i'm not sure -- melissa is here today. any idea house we try to appeal to the 2-year-olds out there goo-goo -- that's my maturity level at times is about two. these are staggering numbers they got a double whammy, programming costs for sports, dom chu, not that you don't play, sara, i know dom and i always play -- we talk about golf all the time. british open coming up, by the way. >> televised by nbc. >> right right. which is good. because even -- i like the fox tracer, but i haven't gotten used to the fox announcers yet on the u.s. open >> everyone has the tracer, joe. you know that. it's like -- eh, they have their thing. >> dom is very tan, which means he's been playing a lot of golf lately >> my angel of a wife, joe joe knows megan -- >> you're straight with your golf game, can you imagine

tracer on some of my shots >> i don't need to see the way those go i don't want to know if you're ever on -- if you play one of those tournaments where there's cameras, you can't really follow the ball that well so how ever you hit it, you hold your pose. people don't know. that's what i've learned any way, i'm worried about disney >> we hit that article that should be interesting tv losses extending to children. >> 4 million subscribers so kids and sports that's tough >> at least they like the theme parks. joe, we'll see you at the top of the hour >> i'll be here. i'm not going anywhere still to come, tech stocks looking set to dip for the fourth trading day in a row. we'll set you up for the wall street session with our market experts straight ahead ghbadexcng wl ilbe rit ck

mixed picture for u.s. equity futures dow futures are up 15 points s&p is flat. nasdaq futures are down 21 that's sort of the pattern lately where technology, which has been the winner of the year is under pressure. it's being offset by other groups on monday it was energy. could be the banks with higher treasury yeields. we'll talk about it with mike holland. is the tech selloff something to worry about for the broader market do you expect it to continue going? >>. >> i don't think it's the beginning of the end of the f.a.n.g.s, but they have gone so far. what's surprising is that they're giving up some it's nice to see some people say it's a problem i don't think it's a problem it's healthy that the banks are doing so well while technology stocks are trading off stocks like microsoft -- microsoft is a great stock but it's come a long way >> time to cool down >> yeah. >> we talked about the narrow

leadership in the stock market there's a handful of these mega cap companies, mostly technology, that have been kind of making these new highs and powering things. does it worry a manager like you when you see leadership positions in the most heavily weighted companies in the stock market starting to now turn lower? >> no. i think as i just said, i think it's expectable, if you will i think the fact that the rest of the market is beginning -- the bank stocks are going up for a reason they have been given freedom to increase dividends and to get some of their capital to work. i think these are good fundamental reasons for those companies to be doing better in the marketplace. the technology stocks have gone on a tear. >> for the finalncials, is this an opportunity for the sell on the news event, the stress tests are done interest rates are moving higher, things are okay. the financials, many of them have had a nice run. citigroup back to multi-year highs.

is this a chance to lighten up on positions for the financials? >> i'm not it may be. for traders i would expect some people would trade out of them i would wait for a position in the financials specifically to see them trade off to buy more jpmorgan is probably figuring out how to do the next iteration of technology for it's customers. it's going to be a player in the new technology in the future that's important >> we have that rumor of a deal possibly out of the uk do you own disney? >> i do. >> did you see the front page story on the journal we were talking about big problems in cable tv, children's programming, mentioned the 2 to 34 demographic, prime time viewing dropping 34% in the past five years >> joe has iger envy >> who doesn't >> he has done a great job these are real problems. they have to address them. it's like microsoft a few years

ago trying to address, watching up to people in the cloud. these are real problems. i think the stock probably could give up a bit here for a while >> on the cord cutting concerns? >> exactly cord cutting is the real deal. >> but you still have faith? >> yeah. they have such a great treasure of stuff they can monetize in a smart way. it takes real leadership to address these problems i think iger can do it he will be around for a while. >> small caps at a record high, playing catchup. still optimistic about small caps >> i own small caps as well. i own a lot of stuff when the vaunted correction happens, including in the small caps, i'll be able to sleep at night. i think a lot of them are way beyond where they should be for the short-term >> good long-term perspective as always mike holland, thank you. >> what are you watching today >> i'm watching what will happen with tech and financials >> can one pick up the leadership position of the

other? fed minutes out at 2:00 p.m. at i's key for treasuries. th'st for us on "worldwide exchange." "squawk box" is next ke something for the most important part of you... your brain. with an ingredient originally found in jellyfish, prevagen is now the number one selling brain health supplement in drug stores nationwide. prevagen. the name to remember.

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good morning geopolitics and the markets. global equities at this point are shrugging off another north korea missile launch, a significant one, though, if you look into the details. president trump is leaving for his second foreign trip. his european agenda come up. and meeting with president putin, that will be interesting. and it's electric, it's volvo, promising to go where no car manufacturer has gone before i don't mean just really ugly cars i'm talking electric now it's wednesday july 5, 2017,

"squawk box" begins right now. live from new york where business never sleeps, this is "squawk box." good morning welcome to "squawk box" on cnbc. we're live from the nasdaq market site in times square. i'm melissa lee along with joe kernen, becky and andrew ross sorkin are off a check of u.s. equity futures and how we're poised to open this first full session of the week nasdaq lodown about 24 points s&p down about 1, dow jones up about 13 we have a mixed bag in europe. the dax and cac up marginally, the ftse