good morning the teflon tech rally. the nasdaq has just did something that it hasn't done in more than two years. microsoft shares surging to an all-time high after reporting blowout results. instant analysis straight ahead. and why the internet is buzzing over jeff bezos' first instagram post it's friday, july 21, 2017, "worldwide exchange" begins now. ♪ good morning a very warm welcome to "worldwide exchange. i'm wilfred frost.

>> i'm seema mody in for sara eisen. happy friday >> thank you same to you. same to all of our viewers straight to the global market picture. the nasdaq managed to eke out a tenth straight gain yesterday. indeed hit another record close, albeit a fractional gain we saw a fractional loss from the s&p, around a tenth of a percent of a loss for the dow. a flat session all in all yesterday. 7 out of 11 sectors were negative this morning we are called higher by about 25 points for the dow. so again, just a small set of movement in the premarket. ten-year treasury note continued to slip over the course of the week last friday closed at 2.32 much closer to 2.2 now around 2.24% the yield on the ten year at the close yesterday. >> two central bank policy meetings that global markets responded to one is the bank of japan keeping rates unchanged but cutting the inflation forecast in europe

here on friday markets relatively lower in asia, the nikkei down 0.2%. still holding on to 20,000, a key psychological level that traders keep a close eye on. hang seng bricking the nine-day winning streak ending lower on the day. let's talk about europe. the ecb policy meeting, mario draghi, the ecb president, keeping rates unchanged but signaling we could see a scale back in stimulus in the fall, in the september policy meeting if response the euro surging, bond yields falling. on friday stocks mostly higher, lower in italy and spain the dax up fractionally on the day. ftse 100 higher by 0.3%. >> let's look at the broader markets. oil prices up a bit today. they were down yesterday around 0.7% for the week as a whole, they're up about a percent including today's gains. another decent week. oil prices rebounding, 47.1. dollar board for you yesterday a big move lower in

the dollar index by about half a percent. the broader dollar index hit an 11-month low decent move against the euro the euro hitting a why not seen for nearly two years since august of 2015, given those comments from mario draghi let's look at the euro over the course of the last month highlighting the effect that mario draghi's comments have had since that central bank meeting in portugal about three weeks ago. steady rise over the course of the month. 4.5% 1.165. worth noting the sintra speech and the speech yesterday, most of the comments were dovish, but investors focusing on one or two hawkish lines. a quick look at gold prices, which gained 0.3% yesterday. they're down -- up fractionally now, 1,247 is the price of gold. shares of microsoft hitting an all time high after reporting earnings after the bell. the stock has since pulled back

after the company issued current quarter guidance 98 cents a share last quarter, 27 cents above estimates revenues topped expectations microsoft's ceo talked up cloud growth on the earnings call. >> i'm proud of the progress, particularly the strength of our commercial cloud results fy- fy-17 was a tremendous year of momentum our technology world view of an intelligent cloud and intelligent edge is resonating with businesses everywhere >> let's bring in tim leskow good morning to you. >> good morning. >> azure, we know this is the growth area for companies like amazon, alphabet and microsoft the growth delivered this quarter in the cloud base was a big surprise, a positive surprise >> it was a really positive

surprise that growth has been there for four, five quarters. this is one where we see the strength in the revenue they're seeing from azure and the margins they're seeing from azure. a lot of cloud services are being commoditized, they're growing in revenue and margin. that's powerful to the bottom line >> cloud continues to help microsoft, amazon and google what is the next phase of growth a lot of investment is being made in ai does that yield profitability as well >> that yields profitability but down the road. if you look at cloud, there's rumors that the cloud business can grow three fold over the next five, ten years so there's probably room for growth for all three major players without significant changes to what they're doing now. things like ai, platform as a service, models they're going towards have tons of room in the future >> is cloud just a corporate product? >> it's mostly a corporate product, amazon and google are in more consumer cloud

microsoft really wins in the corporate cloud. the corporate cloud is more profitability. t profitable. the data they gather leads to ai possibilities. similarly for ibm. >> big jump after earnings, a bit of the pull back still clearly we're positive and encouraged by the results, what was the slight negative? >> the slight negative was the revenue expectations for the coming quarter stock was up to all-time highs in the after market. they had the call, when they talked about this quarter ooc'ss revenue guidance, the stock fell and now rebounded in the morning. there's a term called microsoftening we've been talking about it for dozens of years now. microsoft always talks down their future numbers, analysts need to catch up in the morning. i'm sure this morning we'll see upgrades an increases. >> the stock trading at record highs now. you are selling any time soon? >> we typically don't react to

quarterly numbers. the nice part about the earnings growth from microsoft, as value managers, we're starting to see the earnings accelerate past the valuation. where the market has been high on valuation and technology higher than the market microsoft growing earnings allows us to maintain our position >> do you own any of the other cloud names or just microsoft? >> from the corporate cloud space we do not. we own oracle, they're moving into the cloud -- similarry moving into the cloud, albeit behind microsoft as well as large apple holders >> tim, thank you very much for joining us >> thanks for having me. some other big earning movers to watch, ebay's second quarter profit was in line with forecasts, revenue beat estimates. the company's third quarter outlook is below consensus as it continues to invest in marketing and revamping its platform

stock down 4%. visa's third quarter profit and revenue beat forecasts as the company processed more credit and debit card transactions visa is raising its earnings guidance for the year. capital one's second quarter profit rose 10% beating analyst forecasts. the company pointing to a run up in credit card balances and rising interest rates for the earnings beat. e-trade's second quarter profit and revenue beat estimates. the online broker added more than 0,040,000 new accounts in e quarter. it's up 2.5%. athena health second quarter results topped estimates as revenue rose 15% the company earned 51 cents a share in the last quarter. a 12 cent beat shares of skyworks solutions are falling despite the company reporting better than expected third quarter results. they are raising the quarterly dividend by 14%. skyworks slipping 3% in the

premarket. in other corporate news, in an attempt to add more diversity to leadership, shake shack's ceo is joining square's board. landon dowdy has more. >> reporter: square announcing shake shack ceo randy garutti will join the board of directors. he has been ceo of the burger chain since 2012 he will join square's chief executive jack dorsey as well as other board members including mary meeker and larry somers square originally launched with the goal of allowing credit card payments with the phone but has focused on bigger industries like retail and hospitality. for a company whose future growth aims in the hospitality space, bringing on garutti could shape those ambitions. shares of square have been on a

tear and are trading a bit higher in early trading. back over to you we're keeping an eye on shares of amazon reuters says the ftc is investigating allegations that the company is misleading customers about pricing discounts. this after consumer watchdog compiled sales data on some 1,000 products on amazon's site. amazon says the study is deeply flawed amazon shelled out 3$3.2 million in lobbying efforts in the second quarter of this year, that's up $300,000 from q1 the big spend comes as it seeks approval for its 13$13.7 billio deal to buy whole foods. >> we forget about the role silicon valley plays in washington and the big lobbying efforts to influence decisionmaking they're not the only one >> i'm surprised this requires lobbying it's not really an area where they're suddenly going to increase market share to crazy levels it's a new area.

>> calm those anti trust concerns >> right turning to today's agenda, there's no economic data, but still plenty of earnings we'll get results from colgate, general electric, honeywell, fifth third bank and sun trust before the opening bell. still ahead on "worldwide exchange," we're headed to europe following a big week of brexit talks "the financial times" -- >> are we? >> not literally >> oh. >> that would be nice. we will have peter spiegel from "the financial times" joining us with the brilliance of satellite. and greece is the word at the imf. the big money baouthilt at wall street will be buzzing about today. ♪ (music plays throughout) ♪ ♪ ♪ ♪ ♪

>> welcome back to "worldwide exchange." let's get you up to speed on the market action. a slightly positive open yesterday we were basically flat the nasdaq was the only one that was positive another record all-time close. the other two were below flat. expecting a relatively flat open today. let's look at currencies that was a big mover yesterday the broader dollar index hit a fresh low not seen for 11 1/2 months the euro was a mover higher after mario draghi's comments were interpreted as hawkish. the euro hit a high yesterday not seen for almost two years.

it is extending those gains today. 116.56, extraordinary to see it up at that level elsewhere we have a bit of dollar weakness. >> the imf agreeing in principle to approve a new greek bailout the group says it is prepared to back a new loan worth 1$1.8 billion if eu creditors can provide more details on greek debt relief measures this latest bailout would end a month's long standoff between the imf and the eurozone finance ministers over greece's debt problem. sticking in europe, the uk and eu wrapping up a big week of brexit talks let's bring in peter spiegel from "the financial times. good morning to you. lots to talk about whether it's greece or the ecb. let's talk about the brexit talks this week. was it a positive set of talks or big issues still on the table that have not been sorted? >> i don't think it was a

particularly positive week if we were to look back on this week when the story of brexit or the history of brexit is written this could be the week where the british political classes wake up to reality. going into the talks we had boris johnson saying there will be no brexit bill. anyone who says there is a bill we have to pay to brussels is whistling. then the next day the government came out bot signals sayiwith t saying, guys, we have to pay an exit bill. the other is the fact that march 2019, may 2019 will not be the brexit day there will have to be a transition deal. so it may extend to 2022, 2024, free movement of eu nationals out of britain they're waking up to the reality that this will be much harder than people were advocating. that came out in the uk negotiating tactics and in a cabinet meeting yesterday.

if the uk has woken up to the fact they need a transition deal t takes two to tango the europeans are not yet willing to go that direction the fact that westminster is waking up to the fact that this is going to be harder than anticipated, this is the week that really sunk in there. >> in a way the brexit talks were overshadowed by the european central bank meeting and the surge in the euro. are you surprised by the resilience in european equities? we're off the highs but still holding on to gains despite the move in the eurozone currency. that's a big factor in the exporters, specifically in the auto sector. >> yeah. i was more concerned and surprised about the move in the euro itself. i think all of us covering mario draghi's statement and press conference yesterday, both trer p interpreted it as dovish he said he is willing to extend

qe as long as it takes, maybe longer than it has been announced a discussion on when to start tapering was put off from september to october. he clearly seemed to me and to you folks as well to try to send a signal to the markets, dovish, don't worry, i won't unwind qe, but then the markets reacted the other direction. the euro went to two-year highs. when we talk to people in the markets, they say he wasn't dovish enough for them they go back to last month's speem speech in sintra where mario draghi claimed the end of deflation. i think the voices from draghi's mouth and market reaction were different. the markets are anticipating the end of qe and what that means for the euro tl dollar weakness hit there as well but it was amazing how much the euro spiked yesterday.

i suppose there is reason for the euro to be optimistic about the fundamentals in europe give us your view in terms of how much optimism has improved since the election of president macron >> if you look at the fund flows which was reported out of the u.s. overnight, mass amount of money moving from the u.s. into europe the interesting thing is, look, again, if you remember from trump's election, it was the opposite we had europe on its back, still struggling to recover from seven years of crisis. suddenly the trump trade we had relation in the u.s., we'll be unshackled from regulation it could not be more different now. you have huge political risk in the u.s. signs that they will hardly get anything through congress. you have macron, positive news in the eurozone, the french political and business environment returning to forward looking and deregulatory so sentiment has shifted you have seen flows not only in

equities but the bond market german bunds have rised. it's been a shift in sentiment from the u.s. to europe. we see no signs of that dissipating. the original question about how does european equities continue to rise despite the euro playing against exports, i think you see the internal market and internal trade within europe increasing so you see recovery in the eurozone countries that we thought were flat on their back. france is the utmost case. that's a trend likely to continue sentiment shifting for the next foreseeable months >> peter, thank you very much. have a lovely weekend. great to see you up next, we are headed to washington for a round up of the big political headlines that came out overnight. first as we head to break, the national weather forecast from nbc's bill karins >> good friday morning to you. the heat is the story and also severe thunderstorms as we head into the weekend the heat wave continues from the central plains to the east coast. a lot of heat advisories

it will feel like 110 in st. louis. we have a severe weather threat to the north of the intense heat damaging winds are possible from fargo to lacrosse, minneapolis and chicago. into saturday, those storm also roll through the northern ohio valley and to the mid-atlantic even areas like new york city, philadelphia, washington, d.c. a chance of storms late in the day on saturday. today's forecast, 103 possible in st. louis. mid-atlantic very warm, mid 90s. it will feel like 100 to 105 saturday warm in the middle of the country. by the time we get to sunday,s . that's your business travel forecast more "worldwide exchange" when we come back

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to grow the businesses of tomorrow today. learn more at esd.ny.gov good morning welcome back to "worldwide exchange." i'm wilfred frost along with seema mody president trump is expected to name anthony scaramucci the new white house com director he found sky bridge capital in 2005 but sold his stake in the hedge fund as he prepared to join the trump administration. president trump is reportedly examining his pardoning powers as his legal team explores ways to undercut the russian investigation. sarah dallof joins us from washington with more good morning >> reporter: good morning. these new revelations follow a stunning interview in the "new york times" in which president trump issued a warning to

special council robert mule tore stay out of investigating trump family finances. investigating the investigators. this morning news that the president's legal team is evaluating potential conflicts of interest among aides on robert mueller's team in an effort to undercut their work. the president issuing a warning to mueller during an interview >> mueller was looking at your finances and your family's finances unrelated to russia is that a red line >> is that a breach? >> i would say yes >> reporter: according to a new "washington post" report, the president is now inquiring about his pardoning powers when it comes to aides, family members, even himself senator mark warner says in a statement, pardoning any individuals who may have been involved would be crossing a fundamental line it all comes on the heels of the new yo"new york times" intervie where trump took aim not only at mueller but jeff sessions for

recusing himself from the investigation. >> he should have told me before he took the job. i would have picked somebody else >> reporter: sessions yesterday? >> we love this job. we love this department. i plan to continue to do so as long as that is appropriate. >> reporter: the white house says president trump still has confidence in his ag >> i think you know this president well enough to know if he wanted somebody to take an action, he would make that quite clear. >> reporter: a once rock solid relationship split by controversy surrounding the russian investigation. we mentioned the president's legal team declined to comment on the "washington post" report that he was inquiring about his pardoning powers the article quotes an aide to trump to who says he asked it out of mere curiosity. back to you. >> thank you very much for that. still to come a round up of today's top stories and a look at the earnings movers including

microsoft at another record high before we head to break a look at the mystery chart. can you name this stock over the course of the week it's down more than 12%. tweet us your guesses. we'll reveal the answer later in the show 4444 you get used to food odors in your car. you think it... ...smells fine, but your passengers smell this bell dinging

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. good morning a dow double play, blue chips, microsoft and visa both reporting better than expected results. we're digging inside the numbers. buzzing over bezos what the amazon ceo did on social media that is getting attention today. >> and can you name the mystery chart? this stock has been under serious pressure this week we'll reveal the answer ahead. it's friday, july 21, 2017 you've watching "worldwide exchange" on cnbc. ♪ good morning a warm welcome to "worldwide exchange" on cnbc. hello friday i'm wilfred frost. >> i'm seema mody in for sara eisen. >> let's get straight to the market picture >> u.s. markets in focus after the nasdaq hit yet another record high. ten positive sessions in a row for the tech heavy nasdaq. helped by upbeat earnings. microsoft beating expectations that stock trading at a record high in premarket trade.

as we set up for friday, the dow jones up 24 points, nasdaq up 5. the s&p 500 calling for a higher open by 4 points let's look at the u.s. ten-year, no economic data, earnings will be in the spotlight. the likes of sun trust among others the ten-year yield now at 2.24%. let's look at the global market picture asian equities had a decent bounce yesterday off the back of a dovish bank of japan, today having bit of profit taking for most of the major markets. the nikkei down 0.2% european trade for you coming in after what's been a decent week for the ftse 100, up over a percent a disappointing week for germany and france down under 1% ending pretty much flat. a bit of green on the screens for the major markets. >> let's look at oil oil is trading at a six-week high the run continues. ice brent crude at 49.52, up a half percent wti crude at $47

we get rig data out at 10:00 a.m. eastern, plus that opec meeting next week in russia where leaders from nigeria and libya will be meeting in rush have rush thsia to discuss the suppln demand pressures >> rates for the ecb have been left unchanged, but there's been a sca scale back talk set for september. the pound has been moving lower against the euro >> the thing to point out which peter spiegel also said, actually most of that speech for mario draghi was dovish. he said there would be an autumn review in terms of stimulus. he didn't say that review -- >> but that in itself was seen as hawkish >> people coming into the speech could have thought he would confirm when normalization would begin. he said we're not confirming that yet

which the market took we'll get normalization from the end of the summer either way, it's been taken as positive for the euro. it's up 4.3% in one month. both speeches that sparked this, one 3 1/2 weeks ago no portugal and one yesterday, the majority of the words were dovish but people have jumped on one or two hawkish phrases. gold has had a positive week up by around a dollar. this would be the second positive week if it holds on to gains here gold at $1,247 microsoft reporting a huge earnings beat in its last quarter. landon dowdy joins us with more on the details good morning >> shares of microsoft hitting an all-time high after reporting better than expected results the software company earned 98 cents a share in the latest quarter, 27 cents above wall street's estimates revenue topping expectations due to strength in the cloud unit.

microsoft's ceo satya nadella talked up cloud growth on the earnings call. >> the approach we've taken for multiple years now is to transform everything that we do inside the company whether it's the product creation, how we are organized in the r&d, how we think about breaking down any silos and category definitions this transformation is ongoing this has been happening over multiple years we've got very good customer momentum >> shares did pull back off of those all-time highs as the conference cam got undll got un. guidance was the call there. they' look at the stock. shares of microsoft are slightly flat in early trading. >> you are right it's up right now. >> that's a hard chart to gauge. >> there we go

>> thank you very much it was up about 1.5 a half hour ago. >> landon, thank you very much some other big earnings movers to watch. ebay's second quarter profit was in line with forecasts, the third quarter outlook is below consensus as it continues to invest in marketing and revamping its platform visa's third quarter profit beat forecast forecasts. results were boosted by growing consumer spending in europe and the u.s. visa is forecasting annual net revenue to rise 20%. know capital one had a q2 profit of up 10%. e-trade is up 2.5% in the premarket.

let's talk about skyworks solutions. shares are falling despite the compan reporting better than expected third quarter results. they are raising the quarterly dividend by 14%. skyworks slipping 3% in the premarket. shares of amazon, reuters says the frngstc i investigating allegations that the company is misleading customers about pricing discounts. this after consumer watchdog compiled sales data on some 1,000 products on amazon's site. amazon says the study is deeply flawed it's not moving the share price. amazon flat in the premarket amazon shelled out $3.2 million in lobbying efforts in the second quarter of this year, that's up $300,000 from q1 the big spend comes as it seeks

approval for its $13.7 billion deal to buy whole foods. speaking of amazon, time for our top trending stories jeff bezos just put your friday instagram post to shame. i haven't done one yet the producers are being mean we might beat them the billionaire launched his account yesterday and check out his first post the flyover preview is of blue origin's new rocket factory and jeff bezos chilling on the roof in a lawn chair. he has put it to shame >> there was a lot of talk about this first instagram post from jeff bezos is he taking cues from elon musk, his competitor in the space? >> very clever i like that. >> or he is taking cues from lloyd blankfein who is on twitter. >> maybe using social media as a way to express themselves and have fun as well there was some talk about how this -- we have never seen jeff bezos with hair.

>> i was joking with the jpmorgan team on friday about jamie dimon should join twitter after his outburst they're desperate not to allow that they think he'll get himself in more hot water i think he should get on twitter, it would be enjoyable. salvador dali's remains have been exhumed to settle a court case almost 30 years after his death, a paternity test will be performed to settle a claim from a 61-year-old fortune teller who insists he's the only child. the victory would give her a chance to seek one-fourth of dali's estate. amazing what science can do. he died in 1989. >> assuming he did have a will,

and gave his money a certain way what does it matter if she's a child or not you can decide to give your money to your children or not. >> do you think they look alike? >> not enough -- i need to see the dna proof to believe it. >> okay. >> i don't know the details. i'm just thinking out loud "game of thrones" fans, for about $2,200 you can travel the seven kingdoms the travel comparison site liligo.com assembled an itinerary for folks to travel to sites where the show a been filmed the price, however, does not include lodging costs. this is a good idea to capitalize on the show but i wonder what the sites look like without the film set and the -- >> the filters >> everything around them. >> dramatization >> a lot of it was filmed in ireland, which was not on that list >> i have been to reykjavik.

beautiful. surpassed my expectations. >> you won't bother -- >> i went to reykjavik don't need to see the rest a great way to capitalize on the franchise. >> seems like a gimmick. >> let's talk tech samsung getting buzz after sending out invitations for an event on august 23rd the company leaving a little doubt that it will reveal its galaxy note 8 or whatever it will call the next phone the invitation says do bigger things, perhaps hinting at a larger screen. the question is whether buyers will forgive samsung after all the battery issued caused some note 7s to catch fire. upstaging apple here, because apple's announcement is expected in september on their next phone. samsung says we'll beat you by two weeks. august 23rd. >> in fact, also we've seen from sales numbers that people have been loyal they got -- despite there being such a crazy issue with samsung

and phones catching fire, the sales suggest people have remained loyal most people are buying the phones because of the operating system, not necessarily anything else it's hard to get people to switch over from samsung to apple. >> brand loyalty coming up, why net neutrality is anything but neutral for u.s. tech giants as we head to break, a check on the action in europe. mixed day of trade uk market market is the stand out, up about 0.3% as we look at the pound moving higher. "worldwide exchange" will be right back

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welcome back to "worldwide exchange." i'm wilfred frost along with seema mody time for our must-reads. my pick is in the "wall street journal. it's by the former undersecretary of commerce ind president clint under president clinton. neutrality for thee, but not for google, facebook andalson. america needs google, facebook and the like to prioritize, discriminate and mine users data at will threatens democracy and makes the internet neither op

nor free it goes through the particular arguments of the eu fining google worth the read getting your head around the complicated issue on whether you repeal the net neutrality idea of 2015, obama's position on that and how it benefits people in the opposite direction. >> as you say, complicated topic. we have not seen a lot of progress on that front we'll see if washington can get to it. my pick is in "the financial times. challenge is too easily ducked by today's workers the und he writes about the anniversary of the death of adam smith, reflecting on smith's warning about the deadening effect of repetitive work. he says being an e-mail ninja looks professional and seems professional but often displacement activity for the work that matters. perhaps referring to some challenges that we confront at work, specifically the millennials. you have to keep it interesting. mix it up.

repetition that's depth. up next, the one thing that needs to be on every investor's radar. your trading day is set up straight ahead. here's your final look at today's mystery chart. >> i still don't know what this is >> down 13%. >> the producers decided this with seema >> the answer coming up on "worldwide exchange. ♪ (music plays throughout) ♪ ♪ ♪ ♪ ♪ for your heart...

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higher we're approaching the top of the hour the team is getting ready for "squawk box. becky joins us do you have any more psychologists breaking down what each of you think about? >> no e quushgs peopq people het guess what we do have? >> i don't have a clue >> we'll have dogs here today. i won't tell you why that's your tease. we do have some dogs, puppies on set. you can try to figure out why. we're at the nasdaq. so think nasdaq, dogs. >> opening bell. >> very good now figure out who we have a lot of things going on we'll talk reaction to microsoft like you have. that dow component will have an impact on where things are headed today you're looking at new highs for the nasdaq once again. and we have earnings out from ge today. that comes up at 6:30. less than an hour away we'll have the numbers, instant reaction and some street analysis on that as well guys, also the fda commissioner,

scott gottlieb will be on set with us. we'll talk to him about a lot of issues that are impacting business the pharma companies, how he sees things moving, and as i mentioned, some dogs scott gottlieb coming up >> i have a feeling it's pet q >> pet smart >> pet iq. >> it said it on the wall behind you. i got the name wrong behind you any way. we look forward to "squawk box." another check on u.s. futures. let's have a look. we are called higher by 19 points or so around 3 points. the nasdaq by 2 points the nasdaq had its tenth straight day of gains. let's discuss those markets with the global market strategist at

jpmorgan asset management. good morning to you. >> good morning. >> let's talk about this tech leadership and whether it's justified. i suppose last night we got a clear reason for the justification, that's because it's led by earnings and microsoft the stand out last night. >> exactly in the u.s. equity space we see tech as slightly overvalued sector in terms of relative pes compared to the rest if the earnings are going to come through, that's a reason to be at least not underweighting the sector in terms of asset allegation view. u.s. earnings we expect to be quite strong and with tech leading the way, it does -- it gives us conviction in the u.s. earnings story >> there are retail investors who i speak to who feel like they missed out on the rally, specifically in tech is there at some point a pause in the tech rally that will allow investors to get back in >> it's a tough one with tech

simply because as we were saying those valuations are so high for retail investors and for general global investors we are looking away from some of those highly valued sectors to more value stocks in the u.s., we prefer financials in the u.s. space. so actually it might be that tech continues a bit but given the evaluations, the down side looks more probable than continued upside echoing the past few years which will be hard to do again >> are the big u.s. banks classed as value stocks now? i know for much of the last decade they had been lower valuations, multiples relative to the prior decade, but the likes of jpmorgan, 1.8 times book, is that still cheap? >> it depends on financial or bank you're talking about. there are different noninvestment bank financials in the u.s. that have compelling valuations that can capitalize on the strong consumer story in the u.s., retail focused consumer banks that benefit from record low unemployment and

really high consumer confidence. it depends on which name ises and sectors within the financial sector you're looking at that's why we do look at value and financials in the u.s. as two separate areas so, not combining the two necessarily, but films do have a l financials do benefit from the fed you can benefit on that steeper yield curve. >> is that a story that can be applied to europe now and europe's financials which are on a lower valuation, but it seems, given the way the markets interpreted what mario draghi has been saying, that there may be rate rises to come in due course in europe as well >> indeed. that's one of the reasons we like finlts in euro financials e and eurozone area is one of the areas we favor most. most importantly, the earnings and fundamentals do look strong for the first time in several years. the ecb's mario draghi talking about tapering for next year as

we reduce those asset purchase -- monthly purchase of 60 billion down to zero in 2018 could give a benefit to financials we don't expect interest rate rises in europe until after the tapering of the qe program next year that's further down the line but still higher bond yields in europe can support those values and financial stocks >> looks like we lost you. i was enjoying that. >> it's interesting she still sees tech as an area of opportunity despite the huge rally. the nasdaq at record highs, the tenth positive session in a row. >> i would say on the bank's point, clearly banks earnings have continued to grow but they have run up so much, whether it was the back end of last year or after the pull back in march in europe you have such cheaper evaluations, in part because of the issues across the european financial sector and nonperforming loans within the system that said of course you do have

rates possibly about to rise and cheaper valuations that's why i will see an ongoing shift of the flow of hmoney. >> sticking with europe, we have some big earnings movers that's vodafone trading higher the company reported better than expected first quarter revenue growth vodafone pointing to strong demand in italy, spain and turkey the company expects its core earnings to rise between 4% and 8% this year another stock is hermes, seeing sales growth slowing in the second quarter but results were in line with forecasts the french luxury goodsmaker says demand remains good for shoes and bags, while the silk business continues to rebound. my story for next week is about how the resilience in the euro, the impact that will have on some of europe's biggest exporters, luxury, retail and

hermes is part of that list. >> is it hermes or hermes? >> i think hermes, but you're the classy one here. >> i look forward to the story philips lighting, second quarter earnings improved. philips expects to return to sales growth this year time to reveal the mystery chart. do you know what it is the stock is down 13% this week. it went public, the worst performing public in 2017 in the food delivery space. >> so it's blue apron. >> is blue apron good job down 34% from the ipo. >> once you gave me a pretty clear indication of sector, i could get it >> i knew you could get it my chart of the week, the euro as we said, you just mentioned it, it will impact stocks there. big jump yesterday either way over the last month up 4%. up 1.5% this week against the dollar dollar down again this week. that's it for "worldwide

exchange." have a very nice weekend happy friday to you. "squawk box" is up next. e's jac? he's on holiday. what do you need? i need the temperature for pipe five. ask the new guy. the new guy? jack trained him. jack's guidance would be to maintain the temperature at negative 160 degrees celsius. that doesn't sound like jack. actually, jack would say, hey mate, just cool it to minus 160 and we're set. good on ya. oh yeah. that's jack.

good morning a dow double play. microsoft and visa, visa is a dow component! okay microsoft and visa both with earnings beats plus the nasdaq rising for the tenth straight session, closing at an all-time high. a full market rundown is straight ahead. the trump administration may be getting a new communications director today someone very familiar to our viewers. we'll get a live report from washington and if you ask the internet to help you name something, be prepared to live with the consequences that's how a swedish train just got a ridiculous name. it's friday, july 21, 2017

visa is a dow component and "squawk" begins now. ♪ live from new york where business never sleeps, this is "squawk box. good morning welcome to "squawk box" on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen andrew is off today. our guest host is jason trener, chief investment strategist from strageis you slipped right in here. we like to keep people holding on until the end how are you doing? >> doing great how is the summer? >> pretty good friday in the sum e ready to go again. >> international paper no general foods? >> campbells soup. >>