good morning today's market test. investors await comments from janet yellen >> lethal blow the gop's last ditch plan to replace obamacare may have collapsed. and an avoidable hack? new details reveal the mistake that may have exposed the s.e.c. to a security breach it's tuesday, september 26, 2017 "worldwide exchange" begins right now. ♪ good morning warm welcome to "worldwide exchange" on cnbc. i'm wilfred frost. >> i'm courtney reagan in this

morning for sara eisen i can't believe it's almost the end of september how did that happen? >> i thought you were going to say the end of the week. >> the end of september. the 26th today >> i think of the year in quarters nonfinancial friends are like you're such a freak. >> we're such nerds. >> i like the end of a quarter brings bank earnings >> whole new slew of stats >> you get the end of the fall, which is hot at the moment, and christmas. so bring on q4 let's check in on the global market picture futures at this hour coming off the back of the day, slight declines for the dow and s&p a big decline for the nasdaq it was a tech selloff yesterday when the s&p the tech sector was down 2%. the nasdaq was down nearly 1%. facebook the big decliner, down 4.5% we'll come to that more later. today, expect it to bounce back a bit, a point or two for the

s&p. 27 points for the dow, nasdaq higher by 7.5. ten-year treasury note, we have seen yields come back a bit from last week's highs. we started pushing closer to the 2.3 level. we're 2.223 this morning look at asia this market paying close attention to the enhanced rhetoric between north korea and the united states. the markets reacting mixed we have the hang seng and shanghai ever so slightly higher still it counts as a log for the green. if you look at the japanese nikkei, as well as the kospi, those are down 0.3%. if we can look at what's going on in europe, we are largely lower today. now we are mixed again, just slightly so. both to the upside and the down side we know that brexit negotiations are continuing angela merkel is in talks with three other parties to build that new government, as well as

reported merger talks between siemens and alstoms. >> the german index hardly lower yesterday. it's flat today. >> good point. >> i was a little surprised at the level of surprise people had at that result over the weekend. clearly angela merkel is weakened but did win again her coalition position will be softer than before the afd got 12.4%, or 12.6%, but that was within the margin of error of forecasts. >> i remember you talking about how it wouldn't ab market moving event going into the weekend >> a lot of op sed -eds are poi to the fact that the far right party will get seats, but that was expected people thought 9 or 10, they got 12 but it's not like we're have a brexit event or maureen le pen winning an election

oil prices soft today, down a half percent we're around the $52 a barrel level for wti. dollar board, the euro did react to that german election, down 0.75%. softer again today 1.1815 the dollar is flat against the yen and stroweaker against the pound. we had the north korean news which helped support gold prices flat or just below flat, 1309. >> james mattis saying the u.s. will seek a diplomatic solution to the north korean threat he made those comments in india. we will continue to monitor his speech that's a change in tone, albeit not from him, but all the u.s. spokespeople, including donald

trump. softening down that rhetoric we did get a jump in gold prices, but nothing too significant when you look at equity markets around the asian region. the gop's last ditch effort to repeal and replace obama care seems to have received a fatal blow late last night susan collins announced she will not support the bill she is the third republican no, which means the party can't get the 50 votes needed to pass the measure by a saturday deadline it's unclear whether they will still vote on that bill. wilbur voross is in china today. he's pressing beijing on the need to rebalance bilateral trade and fair treatment for u.s. firms we have new information about how hackers breached the s.e.c. landon dowdy has more. >> as the s.e.c. chair heads to the hill today, we're starting to get new information about the hack that happened to the s.e.c.'s computer system last

year according to reuters, companies were using real financial data to test the edgar system that system was hacked last october, and it's the s.e.c.'s network that is crucial for companies to use to file earnings reports and other material information it was only after the s.e.c. detecteded a suspicious trading pattern when the hack was brought to the attention of officials. reports say the secret service and fbi opened investigations into the intrusion focusing on that trading activity and connection with the breach in prepared remarks to the senate today, jay clayton said there was not enough done to size up the breach and the s.e.c. must do more to defend against cyberattacks this is not the first cyberaccident that the s.e.c. experienced. earlier this year, an s.e.c. server had not been updated to fix known vulnerabilitieses and authorized communications were detected, and information was being sent to a server in the

ukraine. back over to you >> thank you very much for that. switching back to today's wall street agenda the s&p case-shiller home prices with r. out at 9:00 a.m. eastern august home sales at 10:00 consumer confidence also out at 10 chair janet yellen will give the keynote address at the national association of business economics at 12:45 perm even we will hear from lael brainard, mester and bostic. on the corporate front carnival cruise lines and darden report results before the opening bell after the close, we will hear from nike. stocks for you to watch today. nestle will speed up its share buyback plan spreading them out evenly over the next three years. the company has confirmed its goal of reaching organic growth in the mid single digits by 2020 and set a target of achieving profit margins up to 18.5% alibaba is taking control of

its logistics business raising ownership stake to 51% the company plans to invest $15 billion in the logistics unit over the next five years alibaba aims to be able to fulfill online orders within 24 hours in china and 72 hours anywhere else in the world shares of alibaba up by 1% red has the reporting better than expected second quarter profit on strong demand for its cloud computing products and technology the company raising its full-year outlook. shares of ascena retail are rallying after the company reported a surprise adjusted fourth quarter profit. the parent company of ann taylor, lane bryant and dress barn posted higher sales it is worth noting ascena is a small cap stock. qatar airways says it will order all 60 boeing planes under

a letter of intent signed last year they announced a separate order for two fighter jets nvidia ceo announcing a deal to sell hardware to several of china's cloud computing and servermakers alibaba and tencent will update tear systems with nvidia shares of apple this morning, the stock dropped for a fourth straight session yesterday. it's flirting with correction territory. the decline follows reports that the company told suppliers to scale back shipments of parts for the upcoming iphone x, that added to concerns on the street about demand for the tech giant's new devices. apple shares still about 30% higher on the year

premarketindicated to open higher. >> the thing aboutyes, related to that iphone launch, but the pull become also in tbah sect. shares of facebook had their worst day yesterday since november this after reaction to political pressure and share sales by mark zuckerberg down 4.5% or so when it started. a lot of profit taking to come many people long in the name >> biggest drag on the nasdaq yesterday. coming up a showdown in the cotton state voters in alabama head to the polls for a high stakes senate runoff we'll talk expectations ahead. later, how a $2700 donation could cost one wall street firm $37 million.

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throughout history, the one meal when we come together, break bread, share our day and connect as a family. [ bloop, clicking ] and connect, as a family. just, uh one second voice guy. [ bloop ] huh? hey? i paused it. bam, family time. so how is everyone? find your awesome with xfinity xfi and change the way you wifi. welcome back to "worldwide exchange." yesterday we saw declines for the s&p and the dow. but the nasdaq was down 0.8%, 0.9. a tech-driven selloff. facebook was down sharply within the s&p sectors, very much poor performance from the tech sect e down about 2% this morning shaping up for a slight gain at

the open 23 points, 24 points for the dow. one of the better performing sectors yesterdaywas energy. we are just at $51.98. oil giving back half a percent or go, following a strong run of late >> so, making headlines. new numbers today on the devastation of hurricane maria catastrophe modeling firm ai air worldwide estimates the storm cost between 40 billion to $85 billion in insured losses. more than 85% of that damage was done in puerto rico. the numbers are higher for losses caused by harvey and irma verizon announcing its support for victims of hurricane maria in puerto ricoe pledgin$1 million in funds for relief efforts. president trump taking to

twitter last night to talk about hurricane maria slamming puerto rico he wrote texas and florida are doing great, but puerto rico which was already suffering from broken infrastructure and massive debt is in deep trouble. he went on to say that much of the island was destroyed with billions of dollars owed to wall street banks which sadly must be dealt with he added that food, water and medical are top priorities it's really, really devastating. nightly news was there last night. some of the pictures are worse than we've seen. a similar story in the caribbean islands, but within the u.s. territories, puerto rico suffering much worse than florida and texas which is saying something those states also suffering significantly. alabama voters head to the polls today for a closely watched senate runoff. john harwood joins us from washington with the details. good morning >> what we've got is a runoff between the incumbent, luther

strange, appointed to replace jeff sessions when he became attorney general, and roy moore, controversial and colorful judge who has been in alabama politics for some time and booted out of office twice for failing to follow court orders on church state separation and same-sex marriage roy moore has been leading by 10 percentage points in the polls president trump went down to campaign for luther strange on friday, but it was kind of an odd event because he also praised moore and said he mused aloud about having made a mistake. this is a race that the business community is in hopes that luther strange will pull this out. they have three different worries about roy moore. one of them is that he could actually lose the race that he is such a marginal figure even within alabama that he could help a democrat win that senate race

everybody remembers that republicans lost some winnable senate races in 2010 and 2012. democrats loss the race in a special election in massachusetts in 2010. second is that he could encourage challengers to other republican senate brers tors bee 208 elections, and finally he could prove to be an embarrassment to the republican party. i talked yesterday to the chief republican strategist for the u.s. chamber he said they're trying new techniques it of employer to employee contact to turnout the vote special elections are hard to get people to turn out for and hard to predict. we'll watch those returns all day. so will the white house. if mr. strange did not win this would this be an embarrassment for the president having so loudly backed him or one he could back out of relatively simply >> i think he can back out of it simply the people supporting roy moore, those white blue collar voters,

less educated voters are the core of the trump base when donald trump went down to campaign with luther strange on friday, many people in the audience said they were for moore. that's why trump praised moore the bigger embarrassment will be to mitch mcconnell he only has 52 seats in his caucus he's trying to keep them together moore would be much more difficult to corral than luther strange would be and so mitch mcconnell has pulled out all the stops to try to defend luther strange's position it's precarious now. >> let's switch focus to healthcare news yesterday about senator collins. was that expected or was that a surprise either way is that now the death nail for this latest incarnation of the healthcare bill >> it's not a surprise yes, it is the death nail for that bill. i was talking to a strategist

yesterday, they said now we don't have to have that vote there was talk about putting this on the floor, holding all senators accountable if it looks like it's a certain defeat and now three hard-nosed against it, there's not much percentage for mitch mcconnell in doing that. this is the deadline the final week when they can take action to repeal and replace obamacare under the special rules that mean they don't need democratic votes. but this is not going to pass. and republicans in the end will have to drop back to those bipartisan talks that were underway before they set them aside to try to pass the bill. >> john, great to speak to you >> you bet. we're calling this one a political doh nation a blackrock executive could have cost the firm $37 million for donating 2700 to john kasich's presidential campaign. the move could prevent blackrock from collecting fees from the state of ohio where kasich is

governor blackrock asked the s.e.c. to make an exception to the rule. the s.e.c. has yet to respond. >> the obvious point is that blackrock manages funds for the state. so generates fees year in and year out as they would normally. now might not be able to collect them >> oops. >> wow >> that's an annoying one for the board. >> i would have go over some of those rules. still ahead on "worldwide exchange," the rise of the machine. an inside look at how technology is upending the entire hedge fund industry when we come back.

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david perry's teamco advisors shutting down next year the san francisco-based hedge funds has begun layoffs and unwinding positions. it's the latest hedge fund to close its doors. more than 1,000 hedge funds have sh shift down since the 2007 peak. the rise of machine-based baiting is on the rise, but some wonder if this comes with big risks. leslie picker has more >> reporter: we are here at man group, the world's third largest hedge fund what you see behind me looks like a trading floor these guys look like traders,

but it's not and they're not they're coders, they're sifting through research, creating ail go rhythms that do the trading this is known as a quant strategy, which has historically been a black box here at mann group they have a lovely screen that visualizes what the computers are doing these days, when you think of a hedge fund, this may be what you need to be thinking about. it has seen quite the resurgence recently it's doubled assets since 2009 last year they saw inflows when others saw outflows. the five largest hedge funds in the world are quaunt strategies. the surge in popularity created some concerns that we could see another quaunt quake that's what happened in 2007 when some of the big quaunt funds unwound and caused a demise within the industry we spoke yesterday with mann group's cio who says he doesn't

see one of these around the corner but he did list out specific dangers to quaunt strategies which are different to discretionary >> quaunt manager have in the past sometimes used too much leverage they're often good at risk management and use too much leverage that's something i worry about a lot. they can become too big versus the markets they're active in. that's a danger. >> he told us the market today, that quaupts today look different. they're much more diverse. he thinks that could be youthful in preventing another quaunt quake. >> interesting his perspective there, saying leverage is one of the key risks which it was in 2007 when these strategies fell apart. the other key thing is momentum-driven markets. quaunt strategies and algos can do well when markets are moving in one direction, but it's hard to predict a major change in

direction like we saw around the financial crisis we're late cycle i suppose that's another risk they have to look out for, if markets turn around, they miss that key change in direction >> absolutely. a key part of the momentum-based risks have to do with the crowdedness of trades. a lot of people we spoke to who defend the quaunt industry say that is nowhere near where it was in 2007, where it was the equity short strategies in the quaunt world we don't see that these days because quaunt has expanded across all different markets they think that created much less risks >> thank you very much enjoy the rest of your time in the great city of london still ahead on "worldwide exchange," a round up of the top headlines, including a big blow to the gop healthcare bill. later protests and profrtpr look at the money for taking a

u'kn yore watching "worldwide exchange" on cnbc. ♪ can i kick it? ♪ yes you can ♪ can i kick it? ♪ yes you can ♪ can i kick it? ♪ yes you can ♪ well i'm gone

wall street pointing to a higher open as traders shrug off growing threats from north korea. one market pro is raising a red flag on the banks. and protest and profits. the big money behind taking a knee it's tuesday, september 26, 2017, you're watching "worldwide exchange" on cnbc.

sflo good morni good morning a warm welcome i'm wilfred frost. >> i'm courtney reagan >> let's look at what's going on with futures we may be in the market to break the losing streak we've had on the major indices for the last several days slight, but still it counts as a lower market we're seeing the dow jones indicated higher by 37points the s&p 500 indicated higher by 2.5. the nasdaq indicated higher by 13 points. we have about four hours to go until that market opens. if we look at what's going on with the ten-year note trading around the yield range of 2.22. here we are, 2.25. so the yield up just ever so slightly this morning ahead of that opening bell. let's look at the rest of the

world. >> first a look at asian equities, which are largely lower for smaller markets. the bigger markets holding broadly flat japan down 0.3%. south korea down a bit hong kong and shanghai a bit higher let's look at europe the declines yesterday following that german election result were muted. 0.2% or so today bouncing back in the opposite direction with slight gains for european markets >> let's look at the broader markets. oil is a good place to start today. yesterday we saw the price of crude oil rise by more than 3% to settle at the highest level that we've seen since april. right now we're just down ever so slightly. down 0.3%. still hanging on to that $52 per barrel handle. the price of crude is also down a half percent at 58.72. that actually settled at the highest level since july 3, 2015 yesterday. that is an area we like to continue to watch. natural gas higher by almost a

percent. let's look at what's going on with currency. we had a bit of a mixed trade earlier today. not a lot of movement in any one direction. we will watch this closely as the sabre rattling continues, and the rhetoric increases between the u.s. and north korea, which is something that moved the price of gold higher yesterday by about a percent, though today giving back just touch of that for the price of gold >> let's look at the financials. they've been on a steady climb over the past few weeks. our next guest is raising a red flag on the banks. chris whalen joins us. good morning to you. >> good morning. >> let's talk about what we can expect ahead of earnings season. we're a couple weeks away from it we had downgrades in terms of the trading and investment banking expectations albeit we knew comps would be tough coming into the quarter from a year ago. >> they were but you're starting to see the

effect, the real effect medium term of the volcker rule and dodd-frank, which is the banks can't trade their own accounts anymore. so trading is now customer business and you saw it with goldman it was relatively weak on the commodity side and fixed income side surprising goldman made money trading their own account. they can't do that anymore the banks have had to find new way dshs >> they haven't been able do that for a while why has golden fallen so sharply behind its peer. trading has not been great any way. why is goldman behind its peers the last two, three quarters in a way it had not been since volcker came into play in 2010 >> it's a couple things. execution on their own part, and they're competing with large institutions like jpmorgan who are coming after them. the competition is fewer than 2008 you had a lot of second tier firms like bear stearns, they're all gone in a dwindling pool of

revenue, the bigger firms with the bigger balance sheets can come after a firm like goldman, a trillion dollars or less is not that big what about the retail side of these banks. we have had rate hikes we have had the yield curve go up we're expecting more as we go through the year next year is the retail side of these banks attractive still or have we had the easy gains? >> retail in general for large banks is a lost leader they bury it nicely. institutional lending, trading, those are the areas where institutions generate nominal profits. if you look at them on a risked aadjust ted basis, the bigger banks don't make a lot of money. the community banks make the most of all of them. >> as we look at the big six banks, as a grouping would you be in them

>> i think they're fairly valued bank of america had a good run, largely because of cost cutting. same with citi, fully valued a little over book value is all they're worth. there's no top line groechlt it's all about cost cutting, delivering earnings for the street this time around, weakness on resident initial, the banks like wells fargo, u.s. bancorp that still heavily involved in resi, they will chopin because of the movement of the ten-year you were saying before, rates are going up no they're not mortgage rates are at lowest point since the election, that's because there's a shortage of paper out there on the buy side institutional investment community. every time you get that flutter where you see rates go up, they go back down because of demand. >> just a quick comment on wells fargo. tim sloan heading to washington next week on tuesday for a hearing. is all the issues they faced

over the last year priced in clearly the multiples come down. could things get worse again from a share price perspective for wells fargo related to this? >> it's been noise the bank is still trading around 1.6 times tangible book, historically where it's been because they perform very well they deliver >> but relative to the bank's index over a year, it had traded on a premium, now it's discount. >> it's come off a bit, but still a premium stock. you compare it to jpmorgan or bank of america, it's well above them in terms of the metrics you have somebody like a u.s. bank, two times fluc very expensive i think it's mostly noise. the wells board has to get their act together whatever they say in washington this week, they better make sure they know what's going on and they got it right. because the real issue with them is internal systems and controls the fed f they contin, if they stumble, will continue to make

changes. they have the right to change any offer. they have that power they may have to use that at some point >> thank you for joining us. >> that hearing will probably be must-see tv. >> the same day as the equifax hearing. the gop's last ditch effort to repeal and replace obamacare seems to have received a fatal blow late last night senator collins said she will not support the bill she is the third republican no it's unclear whether they will even vote on the bill. this was the scene ahead of last night's monday night football game between the cowboys and cardinals. the cowboys players and coaches along with owner jerry jones took a knee while linking arms prior to the national anthem the cardinals also stood at their goal line with arms locked during the anthem. we're now starting to hear from

advertisers in response to the nfl protests eric has that story for us >> as you saw there in the video, jerry jones took a knee before the ann tell. then they all stood up for when the anthem happened. what's interesting about jones is he's a big donald trump donor. he gave over $1 million to the trump campaign he even said last week before all of this happened that he expects everyone to stand for the anthem if you see him now taking a knee, and he's been a vocal supporter of effectively what trump has been saying all along, that's a big shift coming from somebody who actually is siding with trump in general. and what is also interesting, when luke you look at how trump tweeted again, he's still defending his position despite all these owners who have been his supporters, now going to the players, and the companies, a lot of them have

been very quiet. we reached out to about 50 companies. only five would give us a comment. most took both sides of the issue. a lot of companies said we won't say anything >> until one company says something, then the rest feel like, okay, now the floodgates are open >> it's surprising we've seen such quietness from the company so far, is it not? what ch way are the which way are they expected to go >> you can get an indication of what they're most likely thinking on brand watch, they do a lot of data research, they have shown almost no companies are saying anything about this while regular individuals are polarized. it's hard to get an obvious right or wrong from a business point of view. they don't have an 80/20 side. >> there are some people i've

seen in my social media feed that suggest i don't normally pay attention to football, but maybe this is a reason to tune in is it possible all of this controversy could bump up some ratings? >> he's shaking his head the pregame shows are up 19%, because they're showing the anthem but the actual game are a bit lower. >> i have to say this, separate to that, this weekend they there were some great games, and last-minute victories. eric, thank you very much. >> you got it. top trending stories president trump's twitter account making headlines as ever over the weekend trump tweeted that north korea won't be around much longer. users were calling for his account to be suspended for breaking the code of conduct because of its threatening nature no twitter is finally breaking its silz ence on reasons why it would or wouldn't have suspended

trump's account. a spokesperson says twitter considers the quote news worthiness twitter co-founder jack dorsey also weighing in on the matter saying we are increasing our transparency as a company and commitment to meaningful and fast progress. will do better i think this is slightly ridiculous >> is the president of the united states if wou it would be kind of strange to cut off the means of communication. >> i think they should ban the account if it's racist or outright antagonistic. i think the president airing his views has not gone that far specifically all sorts of questions on that >> we have the official quote from the spokesperson. pretty woman is heading to broadway the muse kag baical will featur original music and lyrics by bryan adams. pretty woman the musical will

debut next fall. this is a classic movie. i don't know if it can do it justice. some things maybe leave untouched. >> lion king was a film that turned >> it was a musical to start >> yes >> you have seen pretty woman? >> of course >> wanted to make sure it's not just an american classic >> no, no. netflix is setting its sights sky high. the company will begin equipping airlines with the mobile streaming technology the technology will help improve the quality in-flight wifi, which of course would benefit netflix. the move could save airlines up to 75% in bandwidth costs, while offering better internet interesting one it doesn't work to stream at the moment. >> it doesn't now. that's the point if they improve it, you could use their service

on the plane >> it's got to be a massive improvement. at the moment, it's in and out >> imagine if everyone was on netflix. >> it's great. you can work, do the e-mails and it syncs back in, but it's a big ask. usually you have to download stuff before you travel. >> remember to remind me of that before i get on a plane. i forget every time and then i have nothing to watch. vw is robmw is rolling out r charger for one of its cars. the battery can be charged in lease than three hours today's must reads coming up as whed out a check on the action in europe mixed picture now in the early going. only slightly. stick around, "worldwide exchange" will be right back for your heart...

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perhaps they believed themselves too essential to face many problems if it simply opted not to bother. london's municipal transport authority makes for an odd bulwark of democracy, but right now it's the best one we've got. millions of consumers love the service, but as people looked into it more over the weekend, it's been less of an outcry, there's been more people siding with transport for london if the result is that it forces uber to act to agree to certain rules. how they see those rules, they exist and apply to other taxi firms if that means uber plays by the rules, but the services still remains, uber could be the winner and sadiq khan could come

out looking smart from this if it ends up with no uber in london, i'm sure people will be disappointed >> i wonder what uber's argument will be. >> my pick is in the "new york times. it's titled the law strangling puerto rico. he says the jones act enacted after world war i, after congress was worried about german u boats requires foreign boats or ships that enter puerto rico to pay hefty fees and taxes. he explains how it makes the costs of goods and living much higher in puerto rico. he said if the jones act did not exist neither would the public debt he said the u-boats are gone the crony capitalism of the jones act does not protect anyone and it is choking the economy of puerto rico if the united states has any interest in the hurricane battered people of puerto rico t

needs to take the law off their necks and now. he goes on to say this is not just about the hurricane, but if you get rid of the jones act t will help consumer prices fall by 10%, 20%. energy prices plummet. real unemployment is 25% there i wasn't that familiar with the jones act. it's a powerful argument which is that in >> "new york times." >> well worth a look we're approaching the top of the hour the team is getting ready for "squawk box. andrew has a look at what's coming up. >> you missed the best top read of the whole day >> oh. what is today? >> tuesday >> shoot called us out. >> i don't understand why i'm on >> yes, you do you have the great three hours to come. >> i'm going to do it, since you didn't because it's such -- it is -- i don't know who wrote it. there's a guy, deal book column today. exbanker facing trial recounts prison abuse i promise you, if you do nothing

else, read this. it is one of the most disturbing slash fascinating stories. it will upset you. >> which ex-bankerment. >> it's about a former goldman sachs banker, and dotcom entrepreneur who ended up in a prison in colombia and was ra raped. >> wow >> sorry to start the morning off that way >> i will read that after the show >> i will have a tease for you about the next three hours we have a guest host this morning, we will spend a lot of time talking with him about the things going on in the marketplace, including the real estate market. we'll touch on taxes tim armstrong, oath from verizon ceo will be joining us talking all things media it is ad week this week. and senator bob corker will join us we'll talk tax reform, whether it will all happen or not.

the healthcare bill, where that stands maybe even a bit about president obama hoshgs wwho was in new yoy talking to canter fitzgerald then dustin johnson. if you're a golf fan, he'll be on >> andrew -- that's what's on t the agenda. coming up next on "worldwide exchange." one market strategist says the trump trade is alive and well and that you should be btietng on value stocks. he'll make his case when "worldwide exchange" returns 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. another day of work.

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exchange." i'm wilfred frost along with courtney reagan. futures are pointing a little higher after declines yesterday. 0.2% or 0.3% declines for the zch a s&p and the dow. much bigger for the nasdaq the tech sector down 2%. facebook the big decliner. joining us is talley leger

facebook is giving more information to politics, but why such a big dedecline >> i think it has to do with a confluence of different factors. one could be some geopolitical conflict in the world centering around north korea and the u.s maybe a bit of a temporary risk-off tone in markets you know, given the run up we've seen in technology stocks, some of those leaders and those gains were some of the first to see a bit of a lightening up on the part of investors. >> so if we talk about the trump trade, value investing versus growth investing, where are you approaching the fourth quarter of the first year that president trump has been in office >> sure. i think that the trump bump that we saw at the end of last year was a market phenomenon that has

changed significantly. so far this year, the composition of returns has shifted away from small cap value stocks to large cap growth stocks which we think we remain in. that's the current regime. what could change our thinking is if we get some kind of a surprise fiscal policy bullet from the administration. maybe that comes in the form of tax cuts given that experience from the trump bump, it's difficult for us to buy the head fake, until we see the tax cuts this time. >> what is your latest view on oil prices i suppose earlier in the summer we were seeing old hold back when all the other commodities, metals and the like surged forward. it was sort of a slightly bearish and wore rig signal that oil could play catch up. i suppose it's starting to play catch up is that a bullish sign for oil prices or just a temporary jump back above 50 theres >> if we're right about a stable

to strong global economic outlook, and after all it does take energy like oil to drive that economic growth, we think the outlook for oil prices is pretty optimistic. >> where are your picks right now as you're looking forward, say the rest of the year, three months or beyond there >> sure. we tend to be more longer term investors, so regionally in terms of countries we still like the emerging markets in developed markets we favor europe over the u.s. in terms of sectors, in the u.s. you probably have to have some domestic exposure. at this late stage of the expansion and market cycle we think you have to have a balance of cyclicals and some defensives, namely technology, perhaps a buying opportunity and healthcare >> great to have you with us this morning talley leger that's it for "worldwide

exchange." futures are pointing to a little bit higher after those declines yesterday. the declines led by the naaqsd "squawk box" picks it up next.

good morning on today's market agenda, janet yellen set to give a speech. we'll tell you what you can expect i think it's on growth. healthcare set back. the latest gop effort to repeal and replace obamacare appears to be short of the necessary votes. the threat escalating from north korea accusing president trump of declaring war and threatening to shoot down u.s. bombers it's tuesday, september 26, 2017, "squawk box" begins right now. ♪

live from new york where business never sleeps, this is "squawk box. good morning welcome to "squawk box" here on cnbc we're live at nasdaq market site in times square. i'm andrew ross sorkin along with joe kernen and melissa lee. look at equity futures the dow looking like it would open up about 29 points higher nasdaq about 14 points higher. the s&p 500 looking to open about 1.25% heighter let's show you what's going on in asia. a bit of a mixed picture the nikkei down marginally the hang seng and shanghai are up as we go over to europe, looking at the dax, cac both up. ftse 100 off marginally. the ftse in italy up just a bit. spain off marginally finally, wti crude, if you want to trade it by the barrel, you can do it. the price tag is over -- way over50