president trump addressing the nation and pledging to defeat terrorism in afghanistan. his plan straight ahead. markets now, green arrows around the world and u.s. equity futures pointing to a positive start on wall street. and gone shopping. macy's hires an executive from ebay as part of a management shakeup. it's tuesday, august 22, 2017. "worldwide exchange" begins right now. ♪ >> good morning. very warm welcome to "worldwide exchange" on cnbc. i'm wilfred frost. >> i'm courtney reagan in for sara eisen >> let's get to the market

action this morning. this off the back of a day where we saw slight gains for the dow and s&p. fractional decline for the nasdaq that was a better performance than we saw around the rest of the world yesterday. you could frame it as resilient as opposed to lackluster futures pointing nicely higher taking their lead from around the world where it's a risk on mood today nasdaq up about 27 the dow jones up 65. the treasury note, we are back above 2.2% on the ten-year yield. yields just rising a bit equities rising a little bit, too. >> stocks mostly higher around the world. in asia it was a bit more of a mixed picture. we saw the nikkei fall again that makes five straight losing sessions for the nikkei, something that has not happened since april of 2016. marginally lower but it counts as a drop.

as you can see, mainland china shares mostly higher for the major sessions all eyes pointing to jackson hole, towards the end of the week where we will hear from janet yellen and mario draghi. somewhat of a holding pattern, but marginally higher for asian markets. checking out europe. yesterday we saw stocks fall across the continent today higher nearly across the board. german stocks are higher by 0.6% leading the charge we have some of the miners doing well, bhp billy ton and some retailers grocery store sales. aldi and lidl up -- >> gaining share >> so they had about 20% almost sales growth year-on-year, a marker for the u.s. names. they're entering the market here, the discount retailers they have about 12% market share, well above the u.s. that's a sign of things to come maybe in the u.s the big four growing for a fifth

quarter in a row the market here in the u.s. is five or six years behind the uk model is quite a good one to look at for people studying at what might happen over here broader markets, oil prices, which failed to catch a bit in the way other commodities have significantly recently, wti crude 47.5 up a percent it did slip a bit yesterday. broader commodities have had a big run. the likes of copper hitting a three-year high. also seeing zinc ziand aluminum jump significantly also some of the core metals, iron ore up 40%. copper having a nice run there over the last couple of years. that's partly because of the weaker dollar. the trade that has not helped the oil price, also because of stronger global demand there is the currency boards for you. yesterday we saw the dollar slip about 0.3%

today the dollar very much gaining. euro slipping 0.4. yen slipping 0.3%. pound slipping 0.4%. that slippage in the yen happening against most of theurs gold prices for you, down about 0.5% today it was up 0.4% yesterday with an address to the nation last night president trump said the u.s. will ramp up engagement in afghanistan. eamon javers is live in washington with more good morning >> reporter: good morning. the president spoke at ft. myer, virginia he laid out a stlrategy for the 16-year long war he said americans are frustrated with a lack of victory but laid out a new vision of what the war should look like going forward the president said initially he was going back on political instincts this is a president who campaigned as more of an

isolationist, he said during the campaign he would like to withdraw from afghanistan. last night he acknowledged he's changing course. >> my original instinct was to pull out historically i like following my instincts. all my life i've heard that decisions are much different when you sit behind the desk in the oval office. in other words, when you're president of the united states >> the president laid out a detailed series of meetings that he had with senior advisers and pentagon brass over the past several months to develop this strategy he said ultimately what's going to happen is a break with the way his predecessors approached the job. >> as a result of our comprehensive review, american strategy in afghanistan and south asia will change dramatically we will not talk about numbers of troops our or plans for

further military activities. i will not say when we're going to attack. but attack we will >> so the president saying there yesterday that he's going to break with the bush era practice of nation building and promotin democracy overseas he said we'll be killing terrorists in afghanistan. he also said he will break with the obama era timetable for withdrawal a couple other points, the president said he would shift from the time-based approach, the more obama era, to one he called conditions. as you heard, we will not talk about numbers of troops or plans for military activities. a much more secretive approach going forward, which the president said on the campaign trail which he thinks is vitally important to not tip the nation's hand. e. sa he said the united states will change its approach to pakistan. saying pakistan has been a safe

haven for terrorists and their allies though they sacrificed in the fight against terrorism. he said too often they have been a safe haven that will change the president announcing a series of changes here last night. it is a problem that has bedevilled his two predecessors. we'll see if this president can find a solution that will work >> absolutely right to focus on that issue of pakistan when we take in mike pence's op-ed in the newspapers today, clearly there is a stronger relationship between this administration and india now >> the president mentioning india last night i can't remember a president mentioning india in high-profile addresses about afghanistan previously it seems like a pivot in the region if you're a pakistani national you may have reason to be

concerned. the remarks were met with praise and skepticism by democrats who say the president didn't offer specific detail about what his plan is. republicans put out statements immediately afterwards saying this was strong and bold leadership a refreshing approach to the troubles in afghanistan. just a difficult problem every president has faced it since september 11th.finally, ts first prime time address as president. why did he pick the time how will this go down with his base >> he picked the time because he finished with the decisionmakes. we knew he had the meeting at camp david on friday, the last meeting to button up the approach this president took a long time to turn away from his campaign views about isolationism and withdrawing from afghanistan had a chance to meet with the gems, talk with the military strategists. acknowledged that he came up with a different approach than the one he had been talking

about on the campaign trail. he said things look different when you're making the decision in the oval office this president took several months to look at the problem, try to understand it, and figure out where to go from here. will it go over well with his base i think so i think his base is with him they'll be willing to 5:nol lem th acknowledge things do look different when you're president. jim mattis making an unannounced visit to iraq. mattis landing at the baghdad airport a few hours ago. he will meet with u.s. commanders on the ground before speaking with the iraqi prime minister this as the iraqis try to retake the northwest city of tal afar from isis control. foxconn's plan to build a factory in wisconsin is an exceptional deal according to paul ryan. ryan was asked at a town hall

last night whether the deal was worth it because wisconsin is giving foxconn $3 billion in ta incentives to build that plan. >> it's in our interests to get ahead of the curve on tomorrow's high-skilled, high-tech manufacturing jobs more jobs are tied to wisconsin per capita than any other state. we always had to stay ahead of the curve. by making sure we're bringing this sector to wisconsin, which will bring other jobs and employers, that's very good for wisconsin's future >> ryan says the tax breaks are contingent on foxconn meeting investment and hiring targets. back to the markets. ray dalio is reducing risk on washington worries the hedge fund manager wrote i'm watching how conflict is being handled as a guide and i'm not encouraged he expressed concern with the

trump administration over immigration and trade. we'll hear much more from ray dalio next month when he joins cnbc's delivering alpha. head doito v deliveringalpha.com for more got to be there. >> it's a big day, for cnbc and for the markets. a lot of good content comes out of delivering alpha. >> september 12th, get online and book your ticket. shares of bhp billiton are at a six-month high. the company is raising its dividend it is exiting the u.s. shale business following months of pressure from elliott management 3% jump in bhp trade tronc is shaking up the newsroom at "los angeles times." the company has named ross

revenson as the new publisher. levinson ran fox interactive media. tronc also replaced the times editor it's down about 1.3%. macy's naming a senior ebay executive as its new president hal lawton will report directly to the macy's ceo. courtney, you're sitting down with the ceo of macy's late every today? >> that's right. "squawk box" will be sitting down with jeff gennette. we have a lot to talk about. perhaps it's a matter of 2k3we9i2k3we9 i getting the stores and online in sync macy's has done a good job using online and in stores comp sales have been down ten straight quarters. it's about turning those around.

that's where we need to focus. >> macy's shares ahead of that news, just up over a percent in the premarket. coming up, pakistan stocks tumble today after strong words from president trump last night. a live report from islamabad straight ahead. here's another check of the yaurp pe european markets still firmly in the green. this is "worldwide exchange" on cnbc ♪ we're drowning in information. where, in all of this,

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welcome back to "worldwide exchange." let's give you an update on the market action. futures sitting pretty up about 0.3% for the nasdaq up 0.10% for the s&p and the dow. yesterday the dow and s&p eked out a gain, the nasdaq was lower. so a resilient performance from the u.s. let's look at where the gains are coming from. nice set of numbers in europe. ftse 100 buoyed by some miners this morning, bhp billiton, antofagasta both up. france and germany also higher let's look at asian trade, which for the most part is positive. japan fractionally lower all the other main markets were higher, including hong kong up 0.9%. president trump delivering a tough warning to pakistan in his address to the nation last night.

>> we can no longer be silent about pakistan's safe havens for terrorist organizations, the pal b taliban and other groups that pose a threat to the region and beyond pakistan has much to gain partnering with our effort in afghanistan. it has much to lose by continuing to harbor criminals and terrorists >> president trump's commenting sending pakistan's main stock index lower today. joining us from pakistan is financial times correspondent farhan pbokhari. what is the reaction from the people on the ground to president trump's remarks last night. >> a much tougher position was widely expected for several days in a sense what president trump has said has not come as a prize to pakistanis.

but the extent of u.s. pressure on pakistan is something that people are still gauging here. that's why lots of businessmen are jittery this morning that's why the stock market has gone down a fair bit and people are still trying to grapple with what's happened. >> what about the view in terms of -- from pakistan about president trump's clearly stronger relationship with presideprim minister modi of india >> that's something that evolved over a period of time. the view in pakistan is that this is a moment when pakistan ought to forge closer relations with china already a close ally maybe some of the countries in the middle east. china in particular.

that's seen as a trump card, relationships with china china has the single largest important investment in pakistan >> give us a quick updaet te domestically in pakistan since the change of leadership has changes settled down now >> they settled down now, but not by the election sometime it's quite a heated race between the candidates mac stan's parliamentary elections are due next year. the race for that has already begun. on the streets of pakistan you see now a more political

activity than maybe even six months ago >> thank you very much for joining us up next, did lloyd flank fine just troll president trump? we'll tell you what the goldman sachs ceo did on twitter. and why the internet is buzzing over this mysterious taylor swift post. details coming up in top stories. first as we head to break, here's the weather forecast from bill karins. >> good morning. the story overnight has been in the kansas city area a lot of torrential rain widespread flash flooding south of kansas city a lot of problems with closed roads and flooded homes. hot and humid in the northeast cold front kicks through we will knock off some big thunderstorms from louisville back up to central pennsylvania and central portions of new york, maybe an isolated tornado. 27 million people at risk of

experiencing these strong storms later this afternoon we're also hot and humid through the southeast. all eyes on east techxas. what could be harvey regenerating in the gulf of mexico and heading towards techs this weekend 'sour business trave forecast , we never forget... , that your business is our business the united states postal service. priority: you new deep hydrating eye gel with hyaluronic acid born to outperform the #1... prestige eye cream for better hydration. and your best look yet. olay eyes collection. ageless.

welcome back to "worldwide exchange." let's get you up to speed on the

market action. futures are pointing higher. the dow is called higher by 47 points the s&p 500 higher by 3 1/2, if we were to see the markets open now we would open higher, but we still have a good four hours to go until we get to that point. yesterday the dow and the s&p fo posted the first positive day in three sessions let's look at the currency the dollar finding some footing. the euro is weaker against the dollar the dollar is stronger against the yen. >> let's check on wti oil prices today wti is higher by 0.4%. around the 46.50 mark. they were up slightly -- sorry, down on monday about 2.5%. the equity side is now in bear

market territory. time for our top trending stories. lloyd blankfein is taking another swipe at president trump on twitter after the sole everie eclipse ee lloyd blankfein tweeted he wished the moon wasn't the only thing casting a shadow across the country. we got through one we'll get through the other. the reaction is clear from the thought from other banks, it's a big surprise that lloyd blankfein is so clearly coming out. he's personal about his opinions

and tweets it's not tweets about his company. there's about 20 they've bon >> each one has been personalized nothing to do with goldman sachs. taylor swift ended her social media blackout and sent the internet in a frenzy, po posting a cryptic 10-second clip of a snake or rep pile moving back and forth this after swift wiped out her social media accounts on friday. they went to black, fueling speculation that she may be ready to release a new album one can only hope. i hope she comes back over to the country side >> there's something "game of thrones" about this. >> i thought maybe she would drop the album during the eclipse. to eclipse the eclipse

>> that would be clever, but that would be hard to do >> nothing she does is losing. >> would have eclipsed my heart. beyonce and jay z are dropping big bucks on a 30,000 foot bellaire mansion. they secured a mortgage for they're $88 million loan the mansion sits on two acres of land with six structures on the property it has four outdoor swimming pools, a spa, wellness center and a 15-car garage. good for them. >> that is incredible. i'm surprised they need a mortgage >> how many kids do they got three? >> three they had twins >> so a pool for each of the kids, spare one for them >> just in case. >> they shouldn't let the kids swim on their own. >> no, no. never. >> enjoy the new family home >> that's right. up next a round up of the top stories and the global

markets. >> and we'll look ahead at friday's fed gathering in jackson hole trades you can makahd e eaof that event we're back in a couple minutes helping keep shoppers safe. this is a financial transaction secure from hacks and threats others can't see. this is a skyscraper whose elevators use iot data and ai to help thousands get to work safely and efficiently. this is not the cloud you know. this is the ibm cloud. the ibm cloud is the cloud for enterprise. yours. tha...oh, burnt-on gravy?ie. the ibm cloud is the cloud for enterprise. ...gotta rinse that. nope. no way. nada. really? dish issues? throw it all in. new cascade platinum powers through... even burnt-on gravy. nice. cascade.

>> markets now, stocks poised for a positive start on wall street vowing victory president trump committing the united states to an open-ended conflict in afghanistan. a live report from washington coming up. plus back to school blues. retail stocks in focus amid a

slew of earnings we have details on how to trade the struggling sector. it's august 22, 2017, you're watching "worldwide exchange" on cnbc ♪ good morning very warm welcome to "worldwide exchange" on cnbc. i'm wilfred frost. >> i'm courtney reagan in for sara eisen >> let's get to the global market picture this comes off a day where we did see slight gains for the s&p and the dow. fractional decline for the nasdaq looking pretty this morning, up 44 points for the dow. nasdaq up 19 or 20 the s&p up 3 points. broadly a risk-on environment today. that's just about shown in the ten-year treasury note, below 2.2% back below that level, we're seeing a bit of bond selling and equity buying. slight risk-on environment the yield about 2.2. we'll get back to the market action first president trump addressing

the nation last night declaring that the u.s. must continue to fight in afghanistan edward lawrence is in washington with the details >> reporter: good morning. right now defense secretary jim mattis is in baghdad he made the surprise trip to the region as the president was making his speech. >> president trump gave little specifics about his strategy for the war in afghanistan. >> we are not nation building again. we are killing terrorists. >> reporter: but the president wants an honorable and enduring outcome to the end of the war. >> a hasty withdraw would create a vacuum that terrorists, including isis and lblg al qaedl instantly fill. >> reporter: he said he will tell our enemies when and how he will attack giving no specific

troop increases but made it clear more solders and resources will join thewar he then signaled a new policy to pressure pakistan to join our fight against terrorists >> pakistan has much to gain with partnering with our effort in afghanistan it has much to lose by continuing to harbor criminals and terrorists >> reporter: he heads to arizona for a campaign-style rally with vice president mike pence. the president is at odds with both republican senators in the state. >> i'm very concerned where we are today. >> reporter: the mayor of phoenix wrote a letter asking president trump not to visit because it will just inflame emotions following violence in charlottesville. the president hinted that he may pardon controversial former sheriff joe arpaio who was convicted for ignoring a court order. the former sheriff tells nbc news that he has no idea if he's getting a pardon. >> thank you very much for that report from washington. back to the market action.

let's see where we are broadly risk-on. asian trade for you, broadly higher only the knnikkei was down. european trade, which was soft yesterday after a positive wreak last week, is higher today germany up 0.6%. the ftse 100 up a similar amount miners up nicely bhp bill ton repoiton reporting results. a check of the broader markets. look at oil prices here. we are higher today after we saw wti lose 2.5% yesterday. there's some hope that perhaps signs of tightening u.s. supply, but we'll get those government numbers tomorrow so some traders may be in a bit of a holding pattern for wti brent is higher by 0.4%. look at what's going on with gold gold actually down slightly here today. about 0.5%, 1290.4

lastly to round things out with the dollar u.s. dollar finding a bit of footing steadying itself a bit here you can see the euro is weaker against the dollar it will cost you $1.17 and change to buy a euro today the dollar is stronger against the yen. the pound is weaker against the dollar by almost 0.5%. let's talk more about currencies and the markets with nick bennenbrook is the dollar now a risk-on trade in terms of the days it moves up >> yes, it is. for quite some time it was sort of the risk-off trade it moved in the opposite direction. ever since the ecb has been easing monetary policy t tends to move in the same direction as

the equity markets, the dollar that is. >> is it just the risk sentiment around the world are we moving away from expectations of what the fed will do given they're lest drs e driven by interest rate hikes? >> i think the fed move, ecb, global monetary policy is still important. that's a reason why we've seen currency moves and dollar moves. >> janet yellen will be speaking as well as mario draghi in jackson hole later this week what do you think the dollar action is telling you? no more fed rate hikes for the rest of year >> that's what the markets are telling us for sure. yesterday it was putting a 25% chance of a rate hike in december what's interesting with yellen, even if she delivers what one would call balanced comments, one maintaining the fed's flexibility, even that might be enough to see the dollar just move a bit higher. i would say the dollar has

fallen quickly this year so there's a chance we see strength in the dollar and maybe a bit of weakness in the foreign currencies >> mario draghi, a lot of eyes on them at jackson hole. what is your views of what we'd like to hear and whether the euro has had its real run up of the year. >> i don't think the euro has had its run up per se. i just think that the currency markets have picked up this theme of monetary policy moves, and they're rock with it it's a bit of a pause, a bit of a bleereather. mr. draghi will hear they need to be cautious as he exits the policy we may see a pullback one cent, two cent before the euro gathers steam higher >> what's your view on emerging market currencies and your strongest conviction trade at the moment >> overall we still like emerging market currencies

we'd say the major stram bacentk are being careful about the way they exit from the monetary policies we could look for a stable to slightly stronger equity market. i'd like some of the eastern european countries, maybe the mexican peso, a bit of risk surrounding the nafta notions, but it continues to continue from a tough period just before and after the u.s. elections we like the mexican peso as well >> nick, thank you very much for joining us no major economic reports today, because few earnings to watch for. we'll hear from medtronic and toll brothers before the open. after the close, intuit, sales force. ray tall yo sadalio says he is g some measures to risk due to

washington conflict. the hedge fund manager wrote i'm watching how conflict is being handled as a guide and i'm not encouraged he expressed concern with the trump administration over immigration and trade. >> adp ceo sounding off on bill ackman last night on "mad money. landon dowdy has more. >> adp's ceo telling jim cramer that he takes offense to some of the claims big ackman made about his company. ackman says adp is underrvalued yesterday adp rejected those attempts rodriguez told cramer about a phone call he had with ackman about the proxy fight. >> i had a conversation with bill right before, you know, we, i guess, agreed to disagree that he would launch a proxy contest. i asked him, bill, i know you

have a vacation which is getting in the way and why you need an extension of this deadline when you get back from vacation, why can't we meet then he said i'm afraid that's not going to work. that's not the bway my business works. >> ackman says the characterization of that conversation is totally false. adp shares have taken a tumble over the past week down more than 7%. back over to you >> landon, thank you very much for that a fascinating ongoing battle >> my gosh >> whether it's jim kramcramer, leslie picker, they've been covering it well. shares of bhp billiton are at a six-month high, swinging back to profit on prices the company is raising its dividend bhp announced plans to exit its

shale business following pressure by elliott management shares are higher by 3%. tronc has named ross levinson as the paper's new p b publisher for the "l.a. times. macy's naming a senior ebay executive as its new president hall lawton will report to jeff gennett. macies is also consolidating its private label functions into a single unit. the moves will eliminate about 100 jobs macy's ceo will join me live on "squawk box" at 8:00 a.m. eastern time we have a lot to talk about. >> we look forward to that. still to come on "worldwide exchange," the must-reads, including why vice president mike pence thinks trump's new strategy for afghanistan will

undo past values first a check on trade in europe positive, up about 0.6% in on and germgermany back in a couple minutes during your period?

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"donald trump's new american strategy for afghanistan will undo past failures qu i focused on the elevated rhetoric about pakistan. mike pence writing pakistan like afghanistan is a haven for terrorist activity between the two countries, no fewer than 20 u.s. designated foreign terrorist organizations have haven and conduct operations the highest concentration of any region in the world. pakistan too often turns a blind eye to the cancer of terrorism and in many cases pakistan contributed to the growth of terrorist groups very strong rhetoric towards pakistan for the president and vice president i'm sure heads will be currented in islamabad and the other thing we mentioned is the relationship building between india and the united states. my pick is from the "wall street journal." it's titled "the navy's mccain moment." it talks about the increasing

number of navy incidents the collision of the "uss john s. mccain" is the fourth this year ten sailors are still missing. the author writes 100 ships are deployed each day since 2001 while the battle force has fallen 14% over the same time making the navy smaller than any point in modern history with more ship retirements coming this is all particularly worrisome as tensions flair in the pacific. the larger question is if the u.s. political class will prevent needless harm to the less than 1% of american men and women who risk their lives for the rest. >> massively surprising development that that happened >> the fourth this year. i can't remember the last time that happened. seems like it's happening far too often. >> indeed. we're approaching the top of the hour that means the team is getting ready for "squawk box.." >> "squawk box." >> good morning joe.

>> good morning, wilf. "squawk box" oh. that hurts. >> hold on do that. is that my voice i like that. >> "squawk box." >> you know what started last night? >> wolf. >> real football actual football. >> i'm getting into it this year >> not that strange -- you can't use your arms style. >> the most watched sport in the world. >> that one. that's the one i was talking about. we have macmacy's, we have the w guy on that great co-anchor you have today is bringing the ceo on we'll talk about all the sthauf stuff that is swirling around macy's not just the ebay guy, some of the other initiatives, but what's happening what happened to macy's? what's happening with malls, what's happening with retailers? we'll look at this afghanistan

issue with -- we'll trot out some experts that have been watching for the last 16, 17 years, whatever it is. i guess it's like korea how long have we been there troops have been there for how many years some places you can't leave. >> not in current combat in korea. it's a different situation >> it is but the troops you leave there, because you can't leave a vacuum you can't leave a vacuum because what would happen in the vacuum is worse than -- any way we'll talk about that. market rebounded yesterday called higher today. the u.s. open starting i had a quick question for you whether your guy is healthy. do you know. >> we don't think he's super healthy. it looks like he'll make it to play he is getting a bit older. when he's not super fully fit, he's not my favorite >> he's like 28, isn't he? >> he's 31 thousan 1 now.

>> 28, 31. neither one is older you're starting to real lade that >> 1985. i was happy to hear when your grandfather was born >> '56 you didn't buy that did you? >> '56 >> you have a calculator on your iphone didn't take you long before you realized i was yanking your chain. all right. >> we'll see you on "squawk box" in 11 minutes time we'll break down the sectors performance and what it could mean f yorour money. stay tuned, you're watching "worldwide exchange" on cnbc 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 exchange." i'm courtney reagan along with wilfred frost. mary, nice to have you here with us on "worldwide exchange. >> happy to be here. >> let's talk about back to

school we wrapped up a number of retail earnings some still to go we're getting tinny glimmers for back to school what's your analysis >> we have three weeks to go, but we're seeing early indicators we're seeing denim is strong in particular we're seeing strength out of abacrombie and american eagle, which is nice and surprising seeing strength in the active wear space and the active shoe space. adidas is strong seeing strength in custom sneakers for guys. that benefits nike ab big trend in graphic tees, that benefits brands like nordstrom, abercrombie, eagle and gap. it's particular athletic wear.

it's not -- in particular it's adidas, but the market is fragmented and being upstaged by lower priced brands. >> when you say you're surprised by the rebound of abercrombie, just a quurtderly thing this one is >> yeah. i think as of right now. we have three more weeks of back to school. >> we'll be speaking with jeff gennett of macy's later this morning. they went through an announcement with management shakeup, bigger problems there than just management what's your view on macy's will any strategy turn around what we're seeing with department stores in general >> i think that in particular we're seeing some stores that are showing strength in particular nordstrom is very good probably the best in turns around because they got rid of the brands and categories that

were not working we're seeing they're doing different things doing more indy brands they're paying attention to a customer that's been lost for a long time. not necessarily back to school, but focusing on petites, women's, plus size explosive market now a lot of retailers just walked away from it because it wasn't a sexy business. macy's, if they do the independent brands, and they grasp that customer and say good-bye to their long-term partners and evolve, yshes, there's hope >> let's talk about groceries. a lot of focus about the threat from online, particularly from amazon what about from the low-cost retailers, like aldi and lidl. we learned this morning in the uk they have reached 12% of grocery market share well ahead of where they are in the u.s. do you think they can continue

to grow in the u.s. market >> absolutely. wherever you can buy several categories in one location, i think it's a win for the retailers. yes, i think it can continue to grow >> is that a big threat to the xifrsi i existing players >> yes, i believe that anybody who comes in the way you're describing is definitely another disruptor and another threat that these existing retailers who have been around for a long time and have been doing things the wrong way need to be concerned frchl. >> we will hear from lowe's later today. we heard from home depot last week last quarter lowe's was not as strong as home depot do you have expectation for lowe's, knowing the housing market is strong >> yes i believe home depot from our analysis will be better than

lowe's they're better with the service. the online efforts that they've done the home dizziness, the home furnishings business, still strong, customers wanted to be proud of where they are. they want to personalize it and update it. i feel that category will continue what would you say if you were to advice someone to look at a stock? i know you're not a stock picker, but looking at companies. nordstrom is a strong one? >> yes >> what about some others? >> i like adidas that's been strong i like coach i still like some of the vertically integrated teen retailers as of this moment. irwould advice somebody to keep watching for the next four to six weeks to see what happens. we may have some surprises there. >> great thank you very much for joining us >> thanks for having me. we look forward to your interview withmacy's coming up

>> 8:00 a.m. on "squawk box. >> futures pointing higher, gains in asia and europe that's it for "worldwide exchange." "squawk box" is 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.

good morning president trump addressing the nation pledging to defeat terrorism in afghanistan highlights from plan straight ahead. markets this morning, floebl stoc global stocks rising macy's hiring a new president from ebay as part of a management shakeup it's tuesday, august 22, 2017. "squawk box" begins right now.

live from new york where business never sleeps, this is "squawk box. good morning welcome back to "squawk box" on cnbc live at the nasdaq market site in times square. i'm andrew ross sorkin with joe kernen, michelle caruso-cabrera is hanging out with us today look at the u.s. equity futures at this hour after the president spoke about afghanistan last evening. dow looks like it would open up higher by 50 points. nasdaq looking to open up higher about 23 points. s&p 500 looking to open about 4 points higher. let's show you what's going on overnight in asia. a hang seng and shanghai composite both up. as we fly over to europe you can see what's going on there. green arrows across the board. a look at crude. wti trading at 47.51 >> here are the big stories we're watching ra