. dow 22,000 in striking distance as the record rally rolls on we have your trading day set up. >> new overnight, the white house is weighing aggressive trade action against china details ahead. apple set to open at an all-time high after reporting a big earnings beat. we'redigging inside those numbers. it's wednesday, august 2, 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. always nice to wake up to a little carlos santana. >> we always have a good soundtrack on "worldwide exchange" to get you going let's check out the global markets. the dow closed at its 31st record high of 2017 yesterday. the gape gains are set to conte thanks to apple. dow futures up 34 points nasdaq futures up 41 s&p is flat to slightly higher apple set to open at a record high after third quarter results last night the company topping expectations more on that in a few moments. let me run you through some highlights the guidance for revenues next quarter, which everyone was looking for as an indication of what they're expecting in terms of the next big launch of the iphone 8 was strong. coming in up to $52 billion. analysts expected 49 there

services revenue grew 22%, became a fortune 100 company as tim cook promised. even ipads grew more than expected so did iphones in what was traditionally supposed to be a weak quarter, a bottom of the cycle in terms of demand >> the guidance towards the end of the year caught people bullishly surprised on this whole thing. this idea -- a slew of analysts will come out. one said the guidance emplies th implies there will be no material delay on iphone shipments >> which apple did not say explicitly >> but they gave guidance that implies that quarter over quarter growth rates indicates a launch from selling more units or higher average selling prices per unit sold there's a lot of reading through the tea leaves

>> we'll talk to a shareholder, go through the earnings call automated systems, tim cook got into a lot of different topics ten-year treasury note yield as well, we are seeing yields tick a bit higher interestingly, even though the stock market had a good day, the macro data was eh, mixed spending was sluggish in terms of personal income spending numbers. manufacturing gauge came in below expectations auto sales were week let's look at the jobs report on friday >> adp numbers out today for the asian side of things, let's check out what happened there. fractionally mixed the nikkei was up by a half percent. the hang seng up a quarter the shanghai off by a quarter percent. marginal moves here to the upside or down siside let's look at what's happening in europe, a bit of fractional

weakness the dax in germany off by 0.1% the cac in france, off by 0.30%. a lot having to do with earnings reports and european financials like commerzbank in germany and societe generale in france and ing in the netherlands certainly the european markets a focus. >> oil prices are soft again this morning wti sits below $50 a barrel. 49.02. brent crude, 51.69 noticed strength in chevron leading the dow yesterday. nat gas goes a bit higher. as for the u.s. dollar, finally got a little bit of a bump yesterday. not much the euro is back to strengthening this morning, 1 1.1854 there's a strong bid for the euro strong dollar against the yen sets the risk appetite mode

better it is up 0.3%. the pound is up 1.3241 as for gold prices, on the flip side, you have a weaker dollar against the euro, stronger against the yen. gold off a half percent. >> turning to your top corporate story, it's apple shares they are set to open at a new high after the company reported better-than-expected earnings. joining us is tim leskow apple is one of his firm's top ten holdings tim, you got to be waking up happy about what you heard yesterday. >> certainly we went to bed happy and nice to see some of those gains fell through to the morning often after the call people worry about guidance this is a strong guidance quarter for apple. >> what exactly was the highlight? we went through a slew of them for you what are you keying in on >> the earnings beat is a result

of or almost justifying why investors have stuck with apple this year. we look at future guidance the iphone is profitable, 41% gross margins. we have a company firing on all cylinders and building those products for the future. we were happy to see services revenue up by 22% and imac and ipad sales accelerate. >> did you get what you needed to in terms of clues for the iphone 8 everyone thought this quarter would be a write-off, see if there were delays what they were thinking on pricing and demand did you hear what you needed to? >> i think so. even if there was a delay, apple has had product delays throughout the iphone cycles, tim cook was cagey in his response to investors asking the question on whether or not we would have a delay he answered look at my giuidanc.

their guidance says they will sell every iphone they make. so they expect production to be good they've gotten better at supplying the supply chain as each model la come ouhas come ot >> we know this is the bread and butter for apple, what will you be looking for in terms of milestones or signs in the coming months to see whether or not this remains a long-term hold for you guys or whether or not you look to trim positions or not >> for us, it's really about valuation. while you have apple who is continuing to push the ball forward on technology they offer and the operating system, it's traded at a lower valuation than most peers throughout the cycle. we have some protection in valuation on the down side so we're not worried about where the stock is now what they're building in augmented reality and services and the hint they gave about autonomous -- >> systems he used the word systems in the

call >> right nobody knows what that is. we don't expect apple to build a car. we expect them to build the software that manages peoples digital life >> let's talk about china. the revenue was disappointing in the quarter, down 10%. tim cook played it off and got into the vpn app issue deeply on the conference call. what's the status of the china market, second biggest market now for apple. he also talked up india as he usually does on the call >> right apple, i think, tried to soften it a bit by talking about other markets where they saw significant growth growth in the middle east doesn't matter much if you don't have growth in china and india the population centers there are so big we want to see them accelerate that again. >> a lot of people feel there's pent-up demand coming from china because this is the first

product launch on the installed base where they can upgrade. >> people also wanted to see further economic gains in china and increases in income in china would help the high-end consumer that's where apple plays we're not so concerned about market share, we're concerned about growth and profitability i think you saw something that maybe there's structural issues of doing business in china and india. in india you have to have a certain amount of components made in india, in china they had to solve the vpn issue >> it will be the top corporate story all day long tim leskow, thank you very much for joining us >> we'll be watching the ripple effect on the suppliers, chipmakers that provide these chips. we saw some reaction in asia, from japan, korea, taiwan, all of those companies getting a boost in the action. we'll watch some u.s. -- >> broadcom, jbl, avago,

skyworks, anybody connected. >> to that ecosystem shares of amc are tumbling after the company took down earnings expectations. landon dowdy has been following this one good morning >> shares of amc plummeting after the company previewed a dramatic quarterly loss, unveiled a cost reduction plan and issued disappointing guidance the theater chain doesn't release second quarter earnings until next week but expects a also of 1.34 to $1.36 a share, versus the one cent loss previously forecast. they expect revenues to come in at 1$1.2 billion, compared to 1.25 billion it expected and amc says they don't expect the third quarter to give relief to owners either this as the box office continues to nosedive, down 4.4% year over year the summer box office has not

helped the case with flops such as "baywatch" and king arthur dragging down ticket sales look at the stock. shares of amc tanking 27% last night. down about 24% in early trading. >> thank you very much that's a big stock move. european stocks to watch, rio tinto's first half profit rose as revenue increased by 25%. but that was slightly less than analysts were anticipating the mining giant expanding its stock buyback program by a billion bucks. the ceo detailed those plans earlier today on cnbc. >> when we have more cash available to be distributed to shareholders, we will do it. the new policies, we will benefit from stronger cash flows, that's implemented today. $3 billion of cash returns today. >> rio tinto shares off by 2.5% in london trading.

societe generale reported a 28% drop in second quarter profits as legal costs weighed, excluding one-off items. revenue fell 1% as investment banking income yuf soffset lower retail banking earlier they talked about how low interest rates are impacting the bank >> we have to take advantage of the improving environment in centra europe, from the dynamic in africa, which has compensated the still negative interest rate environment in the eurozone, and the low market volatility. >> societe generale down 5%. lufthansa's second quarter profit jumped 69%. lufthansa expects stable prizing in the late summer months. shares up 3% now in german

trading. july adp employment is out at 8:15 eastern and we'll hear from cleveland fed president, loretta mester and san francisco president john williams. mondelez and time warner report before the opening bell. after the close, aig and tesla will be the big one. >> that's a big one for sure up next, a china trade crackdown? the aggressive measures the trump administration is reportedly planning to take against one of our biggest trading partners we're live in beijing with that story. check out what's happening with the futures we are seeing positivity, if you will 46 points for the dow. nasdaq up by 0.75% apple a big part of that story "worldwide exchange" will be right back adership is instincti. they're experts in things you haven't heard of - researchers of technologies that one day, you will.

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welcome back to "worldwide exchange." if you're just waking up or heading into work, we are seeing a lot of green on the board for the u.s. markets u.s. equity futures up by 0.25% for the dow jones. the nasdaq up by 0.75% apple a big part of that story as far as for the oil side of things, wti crude, $49.07, off by 0.25% ice brent crude futures, 51.$515

new overnight, the trump administration is reportedly planning to take aggressive trade action against china people familiar with the matter say the move comes as the white house pressures beijing to crack down on intellectual property theft. joining us from beijing is the financial times emily fang thank you for calling in this is the cover story on the "wall street journal." what do we know about what the trump administration is planning to do on trade >> the answer is not much. definitely part of a more aggressive effort on the trump administration to investigate all kinds of what they say are illegal trade measures that china has taken when it comes to steel, sensitive industries like cybersecurity, semiconductors, and now intellectual properties. trump administration officials are considering taking investigative actions against chinese companies that may have

stolen intellectual properties from american companies. that's still under review. there's not a set date when those investigations or measures will be announced and finalized. it's not clear exactly what those proprietary trade measures look like. >> as we talk about this dynamic, the trump administration and the chinese officials have been kind of in this two-step. sometimes it's friendly, sometimes adversarial. what is the feeling like on the ground in china with regard to the relationship with the u.s. >> i think it's unclear because you're getting mixed signals, that's tripped up officials on the chinese side who are unclear who they're working with whether they're talking directly with president trump who in person made some friendly gestures towards president xi jinping in china, but then goes back to the u.s. and signals he will take stronger measures on trade and policy i think a lot of chinese

officials are sitting back waiting to see what the trump administration does. we have not seen official reaction from state media or chinese officials regarding the latest rumors that the trump administration might be taking trade actions against china. they've not been confirmed people are cautious here because they don't want to make a wrong step a wrong step would be catastrophic >> if the so-called investigations lead to tariffs, which would be a more aggressive step, what would be the chinese response >> the chinese have said very, very strongly that any kind of tariffs on chinese goods would signal some kind of trade war between china and the u.s. they said a trade war would be catastrophic for the u.s. and also for china it's an outcome both countries are keen on avoiding but there's been strong language on the chinese side warning the

trump administration not to take the drastic step of putting tariffs on chinese goods >> it's all getting complicated by the pressure the u.s. is putting on chooina to help with north korea. thank you, emily feng from beijing. the question for investors, this is one of the biggest trading relationships of the world look at apple, the u.s. multinationals depend on china as a growth market, thinking starbucks, nike, consumer companies, big commodity companies. u.s. consumers bank on china because it keeps the cost of their goods lower. >> the trump administration would say we're already in a trade war. they have already been taking advantage of us. this is his constant theme the question is what can he do about it given the geopolitical concerns and the fact that the diplomatic concerns of dealing with north korea. up next, more on the trump agenda including tax talk. as we head to break, here's

today's national weather forecast from nbc's bill karins. good morning to you. this historic heat wave is underway in the pacific northwest. it's only going to get hotter over the next two days we should beat the all-time record high temperature today in oregon tomorrow we'll threaten that all-time record high in portland, even seattle has an outside chance of hitting 100 degrees on thursday. it will cool off slightly towards the weekend but still well above average another shot of cool air coming down through the northern plains we'll track that over the next couple of days today's forecast warm and summery, d.c., atlanta, st. louis. a chance of a late-day storm in new york city, boston and great lakes. that's youbune tver sissral forecast more "worldwide exchange" when we come back i love you, couch.

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welcome back to "worldwide exchange." i'm dominic chu. the house may be on recess, but there's still plenty on the washington agenda. the focus is shifting towards issues in our wheelhouse, tax reform and the debt ceiling. tracie potts joins us with the latest healthcare on the table but these topics will be more foe d focused on >> healthcare has taken a back seat because there's such a failed effort to try to get enough votes to make it pass lawmakers are moving on. they're moving on to something that has to do with the wallets of americans, your money

your taxes >> we have important work to do. >> reporter: the senate plans to debate tax reform after labor day. >> our message is simple, a fair and more simple tax road. >> reporter: battle lines are shaping up between republicans and democrats. >> most principle there's a wou principles that would get the country growing again are not listening. >> reporter: no tax hike for the middle class, no tax break for the wealthy, open hearings, no increase to the deficit. could this end up in gridlock? if they decide to cut democrats out of the process and do it by themselves, the same fate is likely to await them. >> reporter: the white house is reaching out >> we've engaged many democrats in the conversation. i think they're excited for tax reform. >> reporter: there is agreement to raise the debt ceiling over the next month so the u.s. doesn't land in default. the justice department is changing course.

the "new york times" published an internal memo suggesting they're going after colleges that discriminate against white applicants now, the president is not giving up completely on health care he has a meeting today with one lawmaker who had said that he would be willing to repeal the af affordable care act. those one or two votes, if he can convince a few additional lawmakers, could make a difference if they come back around to that >> they also said they wanted to repeal obamacare, referringnow to the debt ceiling. they have 12 joint working days for the senate and house before that september 29th deadline where the treasury secretary says we'll max out what is the likelihood of republicans working together in the past some republicans have threatened to play chicken with the debt ceiling, demanding spending cuts. >> that conservative block has tried to block that at times we do know that the republican leadership, democratic leader on the senate side have said

they're sitting down working together, they think they can get it done. the bottom line is this becomes political because no one wants to take the blame for the u.s. not being able to pay its bills and landing in a default withhih is what happens if you reach the de debt ceiling without action. >> tracie potts, thank you very much. coming up, a roundup of stock action. and how to turn a penny into millions stick around, "worldwide exchangewi be ght " llriback

on the hunt for dow 22,000 did apple clear the way? the tech giant set to open at a record high after reporting earnings a full roundup of results and the market impact. a china crackdown. the white house weighs new trade action against china we're live in bay jieijing with details. and shoot for the moon, if you're looking for a new job nasa has an opening. why they're paying six figures if you're willing to fight aliens it's wednesday, august 2, 2017 you're watching "worldwide exchange" on cnbc. ♪ >> good morning. welcome back to "worldwide exchange" on cnbc. i'm sara eisen

>> i'm dominic chu in for wilfred frost. always katy perry with -- >> we always have good music, pop music. it's trying to wake you up on a good note >> let's check in on the global markets. the u.s. futures are showing some signs of life the s&p looking a little bit flat now the dow jones up by 45 points. that's what it would open by if the futures gains hold now the nasdaq up by 44. of course the driving force behind that, that big apple earnings beat. the stock could open up at a record high if regular session trading starts at these levels as owe poetz pose opposed to tr yield, it's a bit lower than the last couple of days. 2.27% for the ten-year, we'll keep that in focus as adp numbers come out this morning.

>> that's a spillover es pekt from strong wall street, strong apple fueled gains in the asian sector overnight let's show you how they closed the knnikkei higher by a half percent. anyone involved in the production of apple systems from taiwan to japan to china rallied. that's where a lot of gains came from hong kong closed higher by 0.25%. there's some apple suppliers, lg display up almost 2% early action in europe, we're seen the euro back to its surging ways new 31-month highs against the u.s. dollar. that's hurting the german export-led dax down 0.2%. bucking the positive trend and the good mood you're seeing in global stocks. thanks in part to that stronger euro which purts hurts exports.

>> we are focusing on oil as we have been for the past couple of weeks. wti crude $49 even ice brent crude, off by 0.2% as sara mentioned, the currency side of things is a focus. check out the euro euro strength right now by 0.3%. 1.1841 dollar/yen strength, 110.7 the pound sterling, 1.3238 gold prices we had been seeing a bit of weakness over the course of the last couple of days again, off by a half percent gold 1,272.80. apple posted earnings that topped wall street estimates earnings coming in at $1.67. sales rising to more than $45 billion. the company's cash reserves grew

by 13% to 2$261 billion on top of the beat, apple is forecasting the current quarter revenue to be better than expected that shut down concerned about a possible delay in iphone launches for its tenth anniversary. the other metric investors were pleased with, iphone and ipad shipments during the quarter, both numbers beat. i would add services to that mix, rising 22% on revenue as tim cook promised. this has become its own fortune 100 company. the revenues in its services business, icloud, music, itunes, surpassing even some big companies. >> you know what else is their own fortune 100 business, the cash stockpile, 261 $261 is bil. >> they have about 100 billion in debt. >> that's true >> but clearly a company hoping

for a lower repatriation tax rate because most of that is overseas they could add 60 points to the dow by themselves. other stocks to watch today, shares at illumina rally as the second quarter revenues topped estimates. the firm is racing its full-year earnings and revenue guidance. you can see up by 10% in pre-market trading fireeye reported a smaller than expected second quarter loss as revenues rose. the firm is also raising its full-year outlook as it shifts to a more subscription-based model. shares up by 6.5%. herbal life reported second quarter revenues that came up shy of estimates company is issuing a weaker outlook for the third quarter. three stocks to watch there besides apple. >> hanes brands reporting second

quarter results in line with forecasts. growth at the company was largely driven by acquisitions hanes brands is lifting the full-year revenue outlook. the stock up almost 4% shares of ultimate software are sliding. the cloud company reporting second quarter revenue that missed forecasts also cutting its sales outlook for the year citing a bigger backlog in orders. match group's second quarter earnings came in below estimates. the online dating company has named mandy ginsburg as new ceo. she runs match's u.s. operations, which include plenty of fish, couupid and other dati sites. wilfred is on vacation, match had a bad quarter. i always kid him >> i never used dating apps in my day maybe wilfred does >> he doesn't actually, but i tease him he should. they have success rates.

>> i would like to see if those commercials are true turning to the wall street agenda a lot of economic reports out. july aadp number at 8:15 and we'll hear from cleveland fed president, loretta mester and san francisco president john williams mondelez and time warner report before the opening bell. after the close, aig and tesla which has been on a tear as of late the white house is reportedly not living up to president trump's standards. golf magazine reporting that the president told members at his bedminster golf club he's been spending too much time there because "the white house is a real dump. obviously this got attention because the white house is seen as a shining beacon of our country. >> it's also interesting only because it's another one of

those off the cuff comments. >> that he says to his golf buddies. >> but it puts such a negative -- >> joe scarborough says you can leave at any time. >> just like he left the republican party. nasa offering a six-figure salary for an out of the world role the agency is seeking a full-time planetary protection officer, ppo, to protect earth and inhabitants from alien contamination. making sure humans don't contaminate other planets, moons and other objects in space the job could wwould require a commitment of up to three years, and pays up to $187,000 a year >> i wonder what the qualifications are to fight aliens >> i've seen a lot of movies >> i don't think that works. an auction for a rare currency kicking off in denver

with coins on the auction block. among other highly coveted coins, the money fair features a 1792 birch cent, the first penny manufactured in the united states >> amazing >> the same coin sold for 2.6 million a few years ago, but experts say this coin may go for 500,000 because its condition is not up to par. >> i'm a history buff. seeing these things always resonates. >> going back to the 1700s >> yeah. >> to sports beyonce could become the next owner of the rockets bloomberg reporting that the pop superstar is showing an interest in a group to make a bid for her hometown nba team. last year the rockets owner put the franchise up for sale. forbes estimates the team could sell for $2 billion beyonce already has some experience because her husband owned a small stake in the

brooklyn nets. he sold his share after forming roc nation >> they don't come up for auction often. when you see them, they will go for a lot of mong. ofmoney. coming up. the healthcare debate continues. today's must-reads are straight ahead. as we head out, another check on u.s. equity futures remember the dow came off of its 31st record close of 2017 yesterday. futures are pointing to a higher start by 48 points, which means we could very well see dow da,000 for the first time ever toy. hey. pass please. i'm here to fix the elevator. nothing's wrong with the elevator. right. but you want to fix it. right. so who sent you? new guy. what new guy? watson.

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welcome back to "worldwide exchange." i'm dominic chu alongside sara eisen. overnight the trump administration is reportedly planning to take aggressive trade action against china people familiar with the matter say the move comes as white house pressures beijing and officials to crack down on intellectual property theft. let's bring in eunice yoon live from beijing this dynamic between the trump administration and chinese officials has been one that has been up and down, a roller coaster to say the least how does this new iteration of news really play into that whole

cycle? >> dom, i've been speaking to chinese officials, everyone i've been speaking to has said they're waiting to see whether or not the white house is actually going to carry out any type of trade action and what the details of the action might be because despite all of the tough talk they've seen out of the white house, the chinese have seen no 45% tariff on chinese goods, no border tax, no quota on steel, and where they have seen action out of the trump administration is on certain chinese entities that engage in business with north korea. in my conversations with these officials, i just get the common refrain, which is that the north korean nuclear issue and the u.s./china trade issue should not be linked. >> u.s. companies and executives long complained about intellectual property theft in china. is that still happening? i don't know if you can actually

answer this, but is it unfair trade theft and does it require -- does it justify an investigation from the u.s. government >> well, i was actually speaking to a couple ipr lawyers about this today and they were saying that what's been frustrating for american companies here is that they feel or that many of them feel that the trump administration has been focused on the manufacturing sector but not ipr and market access issues that's a real issue for many of the companies here in fact, one of the ipr officials said that because the trump administration has come in and there is not a clear idea of what the mechanisms are to move forward, whereby they had the jcct, a mechanism for the two sides to come together and talk, all of that is up in the air so they want to see further action on ipr as well as market access issues.

>> arguably the most important trading relationship in the world. eunice yoon, thank you for that. time for some must-read stories. my pick in "the financial times. cryptocurrencies are mirroring precash banking system did you see bitcoin forked, split off and birthed a new iteration of itself called bitcoin cash the columnist writes today's simsi system is replicating the financial system of the uk when banks could receive whatever official liquidity they demanded for everything else, such as self-created assets there was the wholesale funding market many of these assets were self-valued at fantastical rates. when it froze up, only the central bank had the ability to support them the purists understand that the

crypto scene will not have that saving grace so the liquidity is there is until it's not >> this is an interesting issue because of how much bitcoin has risen in terms of market cap a huge story for people in the audience my pick is in "usa today." "set the healthcare record straight." this is republicans helped craft obamacare. while it is true no republican voted for the final bill, it is blatantly untrue that it contains no gop dna. not only were republican sfl senators deeply involved in the process, it's a cinch the aca might have become law months earlier if the democrats hoping for a bipartisan bill had not spend time wooing gop senators

you can't assume even a bill with no votes at all from the other party was notcy can c significantly influenced by the opposition at earlier stages in its development. if you look in "usa today," there's an opposing view from representative jim jordan of the freedom caucus who said americans are tired of obamacare. they would have voted democrats into majorities in early stages, if they really wanted to keep it i love having the debate, especially in the op-ed pages where you have one side versus the other. >> i'm not sure there's movement in congress at this point after the vote failed in the jsenate a few times. we're approaching the top of the hour the team is getting ready for "squawk box. joe kernen is in new york with a look at what's coming up big move in futures on apple, joe. >> big move every day in futures it seems like. amazing. no one believes -- still hated

rally, isn't it? >> maybe that's helping it >> new highs every day i was trying to check out who that guy is, dom i think i'm looking at a picture of him >> a rutgers professor the state university of new jersey i see him. just wondering what his axe to grind is i would want to spread around the blame and say this is not all democrats, republicans are a part of this front-page article it will all be blamed on trump insurers seem to hike aca premiums 33% we had sizeke emanuel yesterday talking about that he was saying that trump owns the problems for the aca because of -- i don't know, because of the uncertainty of how the administration will support the exchanges or whatever. it's funny the way -- they went this way, people blaming each other. you know what's interesting?

we have mike jackson on from autonation for an economy that we're wondering how strong it is exactly, what's going on with auto sales you know, we have the 2.6% gdp number, a jobs number that might be good again on friday. but this is one sort of glaring inkcongruity or outlier auto sales, seven straight months of declines, partly because they have gotten more discipline and they don't want to give the big discounts to leasing companies. they want to maintain the bottom line we'll talk about apple, too. who knew ipads, really? >> that could be a discounting thing, too. >> much better shipments, you saw. like 15% increase in shipments, but 1.5%, 2% increase in revenue. a lot of schools and businesses, too. i don't know fizz peopnoknow if

buying another ipad, it's become more utilitarian for education and work makes you wonder why the ipad? what about the microsoft product or android product they still do well that closing in on 8$800 billion market cap we'll see who gets to 1 trillion first. >> staggering. >> yeah. >> we'll see you at the top of the hour up next, we're on the hunt for dow 22,000 are we going to get there today? we have your trading day set up. that's straight ahead when "worldwide exchange" returns ♪ (music plays throughout) ♪ ♪ ♪ ♪ ♪

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up 43 points thank you, apple, which is rising 6% in the premarket >> 11.5% weighting in the nasdaq 100. as apple goes, so goes the nasdaq 100 >> let's bring in chad morninglander. good morning >> good morning. >> do you think it lifts the bro broader technology boat, or is apple sort of its own thing? it only boosts the chipmakers and suppliers? >> i think it is siloed to a certain extent what actually drives technology overall is global growth, i.t. spending that is really what gives the lift overall apple has been phenomenal company and earnings >> you don't think it has a psychological effect on the market in what has been a pretty strong earnings season >> it has been, but on a go forward basis i'm skeptical

because of massive contribution to earnings as well as revenues has been that lift within oil and gas complex. when you back that out, yes, it is a positive number nonetheless not as robust. if you go with the forward forecast, our expectations overall for 2018 is an earnings growth of roughly 5% revenue growth of 5% >> is there still value in a market that's at record highs? we talk about rotations. technology has been a very strong performer year to date and over the past year, apple included is it time to see some of that rotation into things like energy, maybe other underperforming assets >> i think that there is value there are seams of value when the market i do believe, though, that technology and growth companies will outperform value companies like energy and financials over

the course of the next six months when it comes to select sectors, we would favor healthcare right now, consumer discretionary as well as technology layering on that, i'm seeing some value on individual companies, in particular on the rising dividend. >> didn't you like consumer staples? >> i still do like consumer staples. we just bought hormel. we think that's a value play as they do tuck in acquisitions, you're going to see operating margins start to glide higher. valuations should glide higher as well. that's a good, quality company with 2$200 million in debt and 8 $18 billion market cap >> we'll leave it there, thank you for some of those picks. >> thank you >> what are you watching >> tesla after the bell. apple today, tesla after the bell >> and adp

maybe a preliminary view of jobs ahead of big jobs friday chgedwe s it for "worlid exan." "squawk box" is up next. where, in all of this, is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you don't. you partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. morgan stanley.

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dow 22,000 still within striking distance. dent quite ma didn't quite make it yesterday thanks to a premarket surge to apple there's a chance we will do it today. we'll break down apple's latest quarter. new this morning, the trump administration considering aggressive trade action against china. those details straight ahead. and theater chain amc previewing a big flop for the second quarter the stock is tanking today's wednesday, august 2nd. we're taking this one day at a time very slow for august

we're savoring the last month of the three-month vacation that our kids have. "squawk box" 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 and andrew ross sorkin. let's look at the u.s. equity futures. they are indicated higher. the dow indicated up by 44 points if we were to open here, we would open above 22,000. we only need 36 points today to break 22,000 for the first time on the dow jones industrial average. it looks like the nasdaq is indicated up 42, and the dow up 44