. good morning earnings earni earnings investors await a frlood of corporate reports. >> deutsche bank shares under pressure after reporting a revenue miss the ceo telling cnbc he's betting big on europe. and senate republicans go zero for two in their attempts to overhaul obamacare. the latest out of washington it's jewuly 27, 2017 "worldwide exchange" begins right n right. ♪

>> good morning. welcome to "worldwide exchange" on cnbc. i'm sara eisen >> i'm wilfred frost good morning to you from me as well throwback thursday, taking you back with some of the best boy bands before >> we've done this before. this is a favorite can never get enough backstreet boys >> let's check in on global ral street the dow futures are up again this morning nicely. 19 points. s&p up 3 nasdaq futures are up 28 part of the story there, facebook shares rising to an all time high following better-than-expected earnings and revenues, driven by higher mobile ad sales. we'll talk to a facebook analyst in a few moments the initial gut reaction was to fall 3.5%, 4%, then it came back up to the flat line. and now looks set to open up almost 4%.

another banner quarter 70% income growth. 40% revenue growth 2 billion users. the stats are unbelievable >> in contrast to alphabet earlier in the week. >> asian trade for you, mostly positive coming off the back of the dovishness of the fed yesterday. hang seng is up 0.7% leading the charge europe markets look mixed. this comes off the back of two or three strong days also comes off the back of a huge number of corporates reporting in europe. would have to say they have been mixed to negative. some huge individual movers. we'll get to them. deutsche bank down 3%. astrazeneca down 15% bayer down 3%. overall you would say it's relatively encouraging, that it hasn't affected the wider market the dax weighed by bayer and deutsche bank. broadly the picture still mixed, highlighting the level of valuation difference in europe compared to u.s. stocks.

it hasn't infected the wider market >> as for the broader market picture, ten-year treasury note yield. the fed statement yesterday was interpreted as dovish on the short end and for the u.s. dollar ten-year yield dropping below 2.30 that's where it sits now as for that u.s. dollar, it did fall to a 2.5% low against the euro/dollar index. it is stabilizing this morning plat against the euro. 1.1731 firmer against the yen, 111.20 and against the pound, 1.314 the numbers had to do with inflation, saying in the medium term or the near-term they won't hit the 2% target. yes, inflation expectations have been falling a signal perhaps they're in no rush to keep raising interest rates and trimming the balance

sheet, even though they did say that will start soon >> and the core measure has declined in terms of deflation prior to that they had the word recently in it also the fact that everyone is jumping on september and october seeing balance sheet reduction. confirmation of that means maybe not quite as many rate hikes let's show you what's happening with commodities that's part of the fuel for this market lately. copper is at a two-year here oil prices near eight-week highs. we got the drop in inventories yesterday. that fueled the rally. wti coming off the highs this morning, down a quarter percent. firmly above $48 per barrel. brent down a quarter percent as well gold, on the flip side of what we saw yesterday a weaker u.s. dollar today a firmer one a rally this morning in gold joining the broader commodity rally. >> big stock movers in europe,

let's jump to some of them shares of astrazeneca having the worst day ever after the experimental lung cancer drug failed a major test. shares are down some 16% a shocker for them shares of diageo shooting higher after the company reported better than expected results. the company announcing a 1$1.9 billion buyback. up 6.25% sarah will talk to the diageo ceo later. shell says profits tripled last quarter despite a pullback in oil prices. revenues of 72$72.1 billion in . 4.3 billion more than expected up 0.7%. deutsche bank shares are under pressure after revenues dropped 10%. the fixed income trading business underperformed. we'll hear from the ceo, john cryan in a few minutes time. the thing about that, yes, it missed on capital markets and

fixed income trading and pure investment banking and corporate banking, more of a concern that's why it's down 3.7%. the revenue miss focused on those areas. facebook shares are hitting a high after the company reported a huge surge in second quarter profits. shares of mobile ads rose more than 50% facebook has been squeezing more ads into the news feed and on instagram and squeezing more out of those ads on the conference call mark zuckerberg said facebook is focusing on how to monetize messenger and what'sapp. >> we're also working to build a business ecosystem around messenger and whatsapp both have large communities and are growing quickly with 1 billion people using whatsapp daily. it's still early on the monetization side, though we started showing ads to a small number of people on messenger. i want to see us move faster here, but i'm confident we'll get this right over the

long-term. >> zuckerberg says video will be a major driver to facebook's business over the next two, three years. they called themselves a video-first company. joining us is ivan feinseth. ivan, expectations were high going in the stock rallied more than 40% so far this year. facebook managing to surpass it. what were the highlights of the report for you >> the biggest thing is the introduction of communities, where mark zuckerberg talked about continuing to expand facebook's mission of connecting the world. they'll start to allow users to the create communities to group people with similar interests. the key driver of this will have more people join but increase user engagement. the more users are engaged, the higher the problability they wil

start to click on advertising. this is another extension of the goal of connecting the world, increasing engagement and eyeballs on ads. >> can messengers apps be monetized in the same way as video content? it seems much trickier for them to make the most out of whatsapp compared to people watching videos on facebook >> i think if you see an ad that has an interest to you, one of the other things they spoke about is to better use ai to target what is of interest to people if you continually see things that are of interest to you, there's a high probable you w l probability you will click on that. >> beyond messenger, instagram early stages, that helped out results, they have oculus, whatsapp, what can investors expect from those other bets as these growth numbers and their traditional news feeds start to

slow, which is something that facebook has promised would happen >> one key thing about the oculus headset and video is sharing experiences. and i think that's a key driver of engagement. and the more users are engaged, that's the whole focus the more users will focus on things they like plus the whole like theme of showing people things that other people with similar interests like are going to probably appeal to you as well. so, i think it's all about targeted advertising that's their key they really want to put things in front of people that they know they have an interest in. that's, again, the key here, that you're trying to focus people that have similar interests or find things that people like. >> facebook vers versus google is facebook beating google at

their own game or buy both? >> we have buys on both. they're very different google's strength is search. facebook's leading value point is connectivity of people with similar interests. >> ivan feinseth thank you for joining us this morning to kick off the conversation on facebook today is the single busiest day of earnings season in the u.s. more than 60 companies set to report among the big names, comcast, conocophillips, mastercard, twitter, u.p.s. and verizon. they'll report before the bell after the close, amazon, intel, starbucks and mattel let's talk more about what we can expect on the earnings front. joining us is christine short, senior vice president at estimize my first question is are they any lessons to learn from any of the names reporting today from the european names earlier cob con conocophillips is coming we had shell and total this

morning. >> energy is expected to still be the leader this quarter because of the week year over year comparisons we expect bottom line growth to hit 400%. some names not coming in as strong as expected we are still waiting for the heavy hitters, conocophillips, exxon, chevron at the end of the day, energy will shine as a leader you have to look at the overall s&p 500 growth number, mroefi m removing energy. we were expecting 8% bottom line growth for the s&p 500 at the beginning of the season, now like you said, we're about halfway through when we end today, we picked up a bit, at 9% because of how wonderful all the sectors have come in and reported if you take out energy, we're alt aboat about 4.5% growth. what if you dig beneath the

bottom line? what quality earnings are you seeing revenue growth >> revenue growth has been fine. we're at about 5% year over year that is down from the first quarter. there is an obvious deceleration in growth. 14% bottom line in the first quarter, 17% top line and contracted down to 9% and 5% on revenues still decent numbers but the reports are not coming in as strong i think you're seeing two big concerns or at least scapegoats here in the second quarter one being the stronger dollar, which is making its way into reports again. the second being the cost of labor. so you're seeing a lot more consumer discretionary names, especially blame labor costs on missed bottom line estimates what's your main takeaway in terms of the tech sector what do you expect for the other names to come? >> tech sector has been on fire. not only is this sector putting

up the largest number of beats, but beating by the largest percentage on average the tech companies that have reported have beat estimates by 12% so that's huge i think 85% of companies have beat our estimates at this point. i think everyone is looking forward to amazon tonight. that's with an internet retail technically within consumer discretionary. we have got an estimate for 1.50 on amazon versus the street which is at about 1.40 year over year growth expected to be very big we love tech the main driver being semiconductors we had micron early in the season leading growth there. we had amd this week so we'll get a few more names. anyone making mobile chips within the semiconductors are winners. nvidia, looking out for them -- >> mine mining bitcoin >> exactly gaming chips have been big for nvidia

pc chipmakers not doing as well. but for micron, which supplies many mobile chips, they have been a big leader. >> christine, thank you very much >> good set up there viacom reportedly out of the running to buy scripps networks. that leads discovery communications as the sole suitor scripps and discovery agreed on a price believed to be $90 a share. other issues need to be finished before the deal gets done. everything is expected to be finalized in a few days. we'll get a pair of economic reports, weekly jobless claims and june durable goods orders for big ticket numbers are expected to rebound. more on the big move lower we are seeing in shares of deutsche bank. that company missing revenue targets. you will hear from the ceo straight ahead. first a check in on the broader european market picture. germany weighed down by deutsche

bank also by bayer down 3% this morning. broadly the market holding up. france in the potisive territory. the baby's room won't build itself. and her paw won't heal on its own. we're all working forward to something. synchrony financial can help your customers make it happen sooner. so she can plug into her dreams... and they'll have a new addition for their new addition. whatever you're working forward to, even if it's chasing squirrels, synchrony financial can help you get there. even if it's chasing squirrels,

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nasdaq up 29 oil has been a big part of the story. it has soared lately, almost to an eight-week high more inventory data bolstered the case yesterday for higher prices this morning off 0.2%. still firmly above $48 a barrel. >> shell and total in european trade up today after decent earnings reports. deutsche bank shares are under pressure after the company reported a revenue miss. annette just sat down with john cryan and joins us with more good morning >> good morning to you that was a disappointment. the revenue line is the focus of investors here, they say because of muted client activity listen to what john cryan just told me in our interview about why revenues are so weak >> the lower level of revenues does reflect a lot of the restructures work we've done over the past year or two.

we have shrunk the business a bit, sold off some businesses, non-core unit is completely gone i wouldn't like to suggest this is the level of revenues-year happy with, because we do want to grow the business client activity levels were low. when you look at the trading markets, in fixed income we're in the pack. >> what could be an optimistic sign for investors is that they finally can manage costs deutsche bank was known as the bank who can do a lot of things but can't manage costs i think john cryan is the first ceo i've seen in many years who can actually reduce costs. that's positive. having said that, he was also saying that he is thinking that europe will be the region where growth will be most active or most positive during the second half of this year. also going forward

and the ba banks should benefit from that. another factor which coulds a positive is that the ecb in the eurozone will stop its ultra loose monetary policy stance somewhere in the second half of this year. back to you. >> annette, thank you very much for that sara, shares down 4% today they are over 50% up from their september lows >> just to aud dd up the europen earnings picture, nestle was disappointing, saying organic revenue growth will come in at lower end of the range sales growth disappointed, giving fuel to dan lobe and his mission on activism. what kind of picture are we getting from europe? >> headline misses like deutsche bank, also bayer, also astrazeneca. but there's been some beats as well whether it's the oil companies,

slel and totshell and total, and the drinksmakers, diageo doing well it's encouraging we're not seeing broader declines in the markets. i think you could have a bigger selloff. republicans hit another hurdle in trying to overturn obamacare. >> first, here is bill karins. watching heavy rain now, this will make it to the east coast by the time we get to friday night and saturday morning significant rains through missouri i-70 has not been a fun drive. here's the rainfall forecast over the next 2 1/2 days when you get to the blue, that's an inch of rain. that's a good soaking for the grass around nashville

one to two inches. the red and the pink, that's two to three inches. that's when we talk about the chances of flash flooding. mid-atlantic, southern pennsylvania, maryland, delaware and southern half of new jersey. that's a good deal of heavy rain that's mostly on your friday when we look towards the middle of the country, still hot with heat advisories from oklahoma to texas. more "worldwide exchange" when we come back

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market picture after a day when we saw the dow continue to lead the way higher, it was up about half percent a lot of focus on at&t, which was up a half percent. also in the s&p, the best performing sector was telecos up about 3% this morning, little bit of positivity we have down s&p, up about 0.13%. facebook looking very pretty after earnings last night. currency boards, in terms of that reaction to the fed statement. no change in interest rates. a couple of tweaks in the language we're expecting balance sheet reduction to start happening in september or october does that mean less rate hikes are needed the dollar sold off 0.6% yesterday. this morning pausing for breath after that decline yesterday a bit of dollar weakness against the pound. against the yen, slightly

stronger and flat against the euro >> in washington, senate republicans were dealt another blow in their attempt toss overall the affordable care act. seven gop senators voted no on a straight repeal of obamacare republicans could afford only two votes to lose for the bill to pass. the senate will vote on a series of amendments on healthcare reforms. the ones passed will be cobbled together for a skinny repeal the skinny repeal could create 16 million more uninsured americans over the next ten years. apple supplier foxconn is making a big bet on america. the chinese company will invest $10 billion to create a new manufacturing facility in wisconsin. the deal would create 3,000 jobs president trump touted the announcement last night at white house.

>> when this is complete, foxconn has the potential to create more jobs than we've seen in many, many decades. i thank you for your investment in the american worker they appreciate it. >> more coming up on "squawk box," they'll speak to wisconsin governor scott walker and special adviser to the president, reed cordish. >> the question is what kind of incentives were offered. >> and where did the talks begin, between two presidents? >> later, waltzing out of the white house. how seanpir y scemahave landed a new gig. we'll show you when "worldwide exchange" returns. prestige creams not living up to the hype?

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earnings hitting the wire. the biggest movers coming up investors are liking facebook right now we'll hear from mark zucker bbeg and cheryl sandberg. and looking for celebrity love there's an app for that. details in the top trending stories. you're watching "worldwide exchange" on cnbc. ♪ good morning welcome back to "worldwide

exchange." i'm sara eisen >> i'm wilfred frost throw back thursday. taking it back with some of the best boy band songs. i don't know what this one is. do you usually it's a theme i know well >> where have you been in the '90s >> in the uk >> nick lachey good cincinnati boy. >> jt. >> >> justin timberlake. >> you know the boy band was not a great success when jt is bigger afterwards as a single artist let's get to the markets futures pointing higher. nasdaq in flparticular yesterday the dow led things higher particularly by at&t the other two indices positive, but not by much. this morning the nasdaq standing most pretty. the dow and s&p up by a tenth of a percent. >> ten-year treasury note did

slip after a comment from the fed which was broadly expected but certainly interpreted as dovish whether that was because comments around inflation being below target or the confirmation that the end of the summer might see balance sheet reduction and potentially lessen the need for rate hikes 067.6 move down in t dow. >> as for the asian session overnight, let's show you what happened there strength from the u.s. and commodities in particular helped translate into better stock performance. the nikkei rose more than a tenth of a percent hong kong closed up almost throuthre quarts over a percent. early action in europe, a mixed picture. we've been digesting a mixed bag of earnings. losers like deutsche bank, ne

nest nestle the oil companies have been big winners. the dax is down a half percent france, ftse 100 in france and italy all in positive territory. as for the u.s. dollar, the weakness we've seen surprised a lot of people. even after the fed came out and said inflation will not meet the target in the near-term, which people already knew. this trade has been working. strong euro, weak dollar it's been helpful to u.s. multinationals we saw that in coke's earnings the question is is this a lack of fiscal policy hopes in the united states, maybe some political risk or just the fact there's little inflation and the market doesn't believe the fed will hike rates. >> i think it's a reflection of the yield differential between the u.s. and the yield closing significantly. the bizarre thing for the euro hitting highs over the course of

the last week, we've seen various ecb members this week stepping back the dovishness stepping back the hawkishness of mario draghi the week before, yet the u.s. continues to push past handles like 1.17 it's a trend that will start to affect european earnings in a negative fashion the way it's been benefiting u.s. earnings in a positive fashion >> benefiting europe over the last two years or so >> absolutely. but still a crucial difference between the two markets. that's valuation europe has a long way to catch up that's why markets are relatively supportive today despite individual declines like deutsche bank, bayer and astrazeneca. oil prices, we've seen shell and total report both reported decent numbers energy is a little soft. but up about 5% in the last two trading sessions 48.65 is the price of wti. the dollar index stabilized a

bit today. has a bit of strength against the euro and yen gold prices for you today is a little bit higher. up a percent nicely higher. 1,262. >> today is the single busiest day of the earnings season more than 60 companies in the s&p 500 are set to report. among the big names to watch comcast, conocophillips, mastercard, twitter, u.p.s. and verizon. after the close, amazon, intel, starbucks and mattel >> among the biggest names to watch, facebook. shares rising on better than expected results julia boorstin has more. good morning to you. >> with over 2 billion active monthly users, facebook surprise the with user and advertising

numbers. revenue grew 45% to 9.32 billion, with earnings growing 69% to $1.32 per share that was 19 cents higher than analysts expected. i spoke to cheryl sand derg abo sandberg about what drove those results. she pointed to instagram and is pleased can the success. >> people are using our processes to connect and provide community on mobile phones we also have 15 million businesses using business profiles on instagram. that joins our 0 million business pages on facebook those are places where people are connecting with each other but also businesses are connecting with the consumer on the earnings call last night, mark zuckerberg reported on what will eventually drive the next leg of growth >> we're also working to build a business ecosystem around messenger and watts uhatsapp.

both have large communities and are growing quickly with 1 billion people using whatsapp daily. it's still early on the monetization side, though we started showing ads to a small number of people on messenger. i want to see us move faster here, but i'm confident we'll get this right over the long-term. >> they talked about content creators connecting with consumers. we'll have more from zuckerberg on "squawk box." >> looks like a lot of analyst questions about future opportunities in video, messenger, and one asked mark zuckerberg about his trips around the country it feels like a bullish group of analysts who are trying to make the case of what comes next for the company. was cheryl sandberg or mark zuckerberg ability to spell that

out? >> yes, there's a lot about video. they're investing in what sheryl sandberg called an ecosystem for video and content creators that will be starting to roll out as soon as august. they've been investing in helping content creators create original content that would live on facebook. there's opportunity there. as facebook starts to go after the $70 billion television advertising market, so they can lure over advertising dollars to their video format and lots of talk about messenger. a billion users but not much revenue. analysts have seen all of these opportunities, levers that facebook has yet to pull, now they're trying to figure out when and how quickly we'll start to see revenue come out of them. >> thank you very much >> clearly they're the masters of mobile and video. i'm curious what they can do to

monetize messenger clearly message ser a differeent service. >> they said they would lighten the ads in the news feed >> and whatsapp, there's so many immediate alternatives, simple text messaging, i don't see how they just start throwing adverts at you but who would bet against them because they made everything else work. >> they got it on instagram as well i don't get overly crowded on the ads. do you you're a big instagram user. >> i am. it annoys me when i see one ad >> i always get confused >> you get one or two every ten pictures, it's not so bad. instagram is social media, you're used to getting ads >> stop mexi inmessaging people guess. >> or keep doing it but don't keep using what'ssapp if they

throw adds ads at you >> big stock movers in europe, let's jump to some of them shares of astrazeneca having the worst day ever after the experimental lung cancer drug failed a major test. shares are down some 16% a shocker for them shares of diageo shooting higher after the company reported better than expected results. the company announcing a $1.9 billion buyback. up 6.25% shell says profits tripled last quarter despite a pullback in oil prices. revenues of $72.1 billion in q2. 4.3 billion more than expected >> other european names to watch. total reporting better than expected numbers, a 14 % jump in profits. it confirmed dividend plans. it was up a bit. it jumped on the release of the numbers, but slipped a bit in the last hour. so it's flat at the moment deutsche bank shares are under pressure after revenues dropped 10%. the fixed income trading business underperformed. broader capital markets and

corporate banking more of a concern. that's why it's down 3.7%. >> bayer is down after crop profits in brazil. and ab inbev is up 5%. sky benefitting from tight cost controls and growth in germany and italy. rupert murdoch's 21 1 s1st cent fox looking to buy a stake in sky. paypal raising its earnings outlook after reporting results that topped expectation. the company citing user growth

its a that ceo is coming up on squawk alley. shares of buffalo wild wings missing the mark blaming high chicken wing costs and operating expenses the stock was halted briefly. netgear stock getting a pop after topping expectations that stock is higher. whirlpool cutting the full year outlook, citing a higher tax bill. shares of discover finlt are falling after the company reported a 11% drop in second profit that missed forecasts as the credit card company sets aside more funds to cover future loans losses. shares of f5 in the works are down after second quarter numbers missed expectations. down 7%.

earnings, earnings, earnings there are people winning and people beating but in general massive individual stock declines and markets on both sides of the atlantic holding up. >> in the u.s. it's been the beats that have been notable mcdonald, boeing yesterday drove the dow up 100 points. look for celebrity love? there's an app for that. i know someone who might be interested >> you looking at me no don't need it. plus sean spicer could have a new gig. totrdip enng stories when we return [brother] any last words? [boy] karma, danny... ...karma! [vo] progress is seizing the moment. your summer moment awaits you, now that the summer of audi sales event is here. audi will cover your first month's lease payment on select models during the summer of audi sales event.

welcome back to "worldwide exchange." i'm sara eisen here with wilfred frost. time for some top friending sto trending stories "dancing with the stars" wants to waltz with sean spicer. the dance show has reached out to spicer about joining. rick perry competed last year. he's the current energy secretary. he was voted off in the second week do you think he'll do it >> the bigger thing is the story reported that he had endless meetings with all the broadcaster s over the last several days >> that's different. that could be about being a contributorment. >> i'm surprised about that. for someone criticized for his role and had a short tenure, i'm

amazed at the interest good for him i hope he makes the most of it, whether it's dancing or -- >> what about anthony scaramucci say when he left i hope he makes a lot of money. canadian prime minister justin trudeau gracing the cover of "rolling stone" magazine. the feature discusses his relationship with trump as well as lighter subjects like his love of snowboarding he has a big fan base. "rolling stone" magazine part of it. >> he appeals to their demographic. younger millennials. half of his cabinet is female. looking for celebrity love turns out there's an app for that love flutter blue is an app, a premium app aimed at celebrities, catering to verified twitter users wilfred. the app has been ruolled out in

san francisco, los angeles, new york, london and tokyo you talked about having a crush on celebrity actresses before. this could be your shot. >> not broadly -- >> certain ones. you're verified, they're verified try a little love. >> it's slightly awful and elite, i would suggest >> yes >> you're more about democratizing the process. >> we all have crushes on certain celebrities. we do but we don't all have certain blue checkmarks. >> it's amazing this proliferation of these dating apps there's one for everything you to blue ticks >> blue checks >> that did confuse me you use the same word for that as writing a financial piece of paper. tick is how we say it. >> that's a bug. up next, earnings, earnings, earnings

this thursday is a busy e.on we'll get you set up trading day when "worldwide exchange" comes right back these birds once affected by oil are heading back home. thanks to dawn, rescue workers only trust dawn, because it's tough on grease yet gentle. i am home, i am home, i am home

welcome back i'm wilfred frost. alongside sara eisen u.s. futures pointing higher the nasdaq up 27 points. about a half percent the s&p and dow both up just above 0.1% joining us is john manley from wells fargo funds management the stand-out from you so far in terms of earnings season >> technology is coming through. i learned something back at the end of last century, when highly valued high-growth companies fall only because valuation, it's almost always a buying opportunity. the valuations as high as they are don't matter until the fundamentals make them matter. the old saying is buy low, sell high it's not buy at the bottom, sell at the top you want to sell after the top, then the reason to sell is

clearer. buy a little after the bottom, sell after the top still a lot of juice in. there. >> you don't worry about the size they have right now within indexes and the broader economy? >> i worry about everything. i do this can't go on forever six months or a year is not forever. what happens is if you step out, there's a tremendous tendency to want to step back in why do markets -- bull markets, the people left out or who stayed out have to come in there's a risk to risk aversion, you have to be in it for a while. >> just to be clear, the warning sign for you when to get out is when the earnings turn down. as long as they keep going up, you're happy to stay in the stocks >> if the earnings flutter if they show they're starting to disappoint, you will probably sell 5%, 10%, 15% off the top. you're far better looking at the

fundamentals valuation is a tricky thing. many times it's a product of what goes on in the market, not a driver >> we'll continue this conversation let's get a preview of what's coming up on "squawk box" from andrew good morning >> good morning. a lot coming up. we will talk about the skinny bundles, skinny repeals perhaps of obamacare then governor scott walker, you heard the news about foxconn opening that new factory in wisconsin. he will be talking to us about that we'll talk about what that means. viacom, as you may know, out of the running for scripps. we'll talk about that. earnings, earnings we have reaction to facebook, we have p&g we'll hear from the mother ship, comcast, twitter, waste management's ceo then all skinny, skinny. we might have a skinny marg read margarita by the time it's done. >> john manley back with us. you were talking about how tech is the standout.

there's been a few old school economy standouts. boeing with the hit yesterday driving up the dow mcdonald's, caterpillar. this is not just the sexy f.a.n.g. stocks. jim cramer called it old dogs with new tricks. at&t in the group as well. what does that tell you? >> tells me the economy is getting better and that that will benefit earnings. the thing people got wrong the last couple of years, they felt the profitability was too high for earnings to go up even if the economy got better that's simply wrong. the economy getting better. >> you like tech what's the next top pick after that >> health care you have an aging population improving technology in healthcare and a representative democracy. i'm not surprised they're having such a hard time crafting a healthcare bill. we'll have to pay for it you cannot tell people you're too expensive to keep alive and expect hthem to vote for you >> how does that impact the

stocks isn't there uncertainty about the policy and what it will look like >> i'm never good with 5%, 10%, 15% moves in the market. on balance, spercentage percentf healthcare to gdp has to rise. >> it just sector speck liific healthcare or will we see a pick up in the market more broadly? >> if something gets done to help corporations, it will be a positive if nothing gets done, i'm not sure it's that much of a negative i wonder if some issues we've been going through for the last eight months were not discounted in the first 12 hours that donald trump was president-elect. i think -- i expect the worst, you will never be disappointed >> we're still in digestion mode of the federal reserve statement. it was a bore one.

t boring one. did the outlook change >> no, but it got reinforced look back at janet yellen's testimony a week or so ago the biggest thing she said is i get it i get the risk of deflation and i get the risk of inflation. i get it the great thing about that, it doesn't mean she'll be right, she may be wrong but she won't be wrong for long. >> she may wait to raise interest rates, because president trump said she is a low interest rate gal? >> she won't delay for that. >> she might delay a bit >> lean to the left, lean to the right, no reason she should. >> john manley, thank you very much. >> key things to watch >> i will watch procter & gamble they have a fight with nelson peltz who wants a seat on the 11-member board. they're fighting it. >> you have ivan menezes of

diageo coming up as well earnings aoss crthe board today. "squawk box" coming up next. or your digestion... so why wouldn't you take 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.

stocks again, new highs as wall street's fear index, the vix, sets an all-time low following the fed decision and it is actually the busiest day of earnings season we'll bring you results from comcast, verizon, procter&gamble and twitter. and a second healthcare vote failed in the senate this is an actual repeal the ones that they voted on many times. this time seven senators did not -- republican senators didn't go along with it they're turning to plan "c." the so-called skinny repeal. we'll get a live report from

washington it's thursday july 27, 2017, "squawk box" begins right now. i like this song how do you like me now welcome to "squawk box" on cnbc. we're live at the nasdaq market site in times square i'm andrew ross sorkin along with joe kernen. becky quick is off today she will be back tomorrow. we have green arrows, they just continue dow looks like it could open up 15 points. nasdaq up by 28 points the tech heavy nasdaq, we'll talk about what's going on in tech land. >> you're saying that as a joke, tech heavy nasdaq. >> we brought her in for some interviews she h t