to rally again as earnings season heats up. this week's agenda coming up. oil prices jump as iraqi moves in apple just got a big upgrade despite all of the iphone production concerns. monday october 16th, 2017. worldwide exchange begins right now. good morning very warm welcome to "worldwide

exchange" here on cnbc i'm wilfred frost. >> i'm courtney ragan in for sara eisen >> nice to be with you, court. let's check in on the market picture this morning we did get slight gains on friday and slight gains for the week as a whole last week. the dow led the pack it was up 0.4% the s&p up .10 of a percent. a number of record closes. walmart the big winner last week, up 9.6% which courtney will have all the details on in a moment or so this morning we have stocks up 30 points on the dow fed chair janet yellen making the case for more rate hikes speaking at a weekend's g 30 rate hike. they said it will warrant gradual rate increases she noted inflation has been, in her words, the biggest surprise in the economy similar message in turn that was struck in the minutes last week

and it's leaving the ten year treasury note below. last friday we split them to 2.28 and we're just above that this morning on monday morning, 2.29. >> asia market news, we got some data out of china. consumer prizes rose 1.69% from a year ago that was in line with expe expectatio expectations producer prices jumped 7%. that was above a forecast. you can see the nikkei higher than half a percent. pt shaj high down slightly the national congress of the communist party china kicks off on october 18th. take a look at what's going on in european markets in the early going this morning there's a lot of political news in europe. i'm sure wilfred will help us dig into all of that here. we have the german dax, france

cac 40 and ftse 100 just slightly higher here although the index news in italy and spain are lower on the session but we have a potential surprise or i guess shift to the right in the austrian election if that is, indeed, what we get. waiting on the catalon president to speak and then british prime minister theresa may going to brittain. >> the youngest world leader. >> 31. >> 31. >> austria. >> later, broader markets, we didn't see too much as a close sure, it's gaining about 1/3 of a percent against the euro gold prices for you to have a flook at those as well they are slightly higher at 13.06. oil prices, interesting story this morning up about 4% last week and gaining further strength today, up about 1.2%. developing story in the oil market we are keeping an eye on the

cause of that rise in our oil prices is coming from the fact that iraqi troops have sent -- iraq has sent troops into some of the kurdish regions where there's a lot more oil production than some of the areas that have been fought over by isis. we're keeping an eye on that story this morning, up 1.2%. so now let's get to this week's wall street agenda chock full of economic data and earnings reports wednesday, housing starts. more than 50 companies and nine dow components let's include netflix. after the close today. we'll get results this week from goldman sachs, morgan stanley, johnson & johnson, ibm, verizon, procter & gamble and ge. wide ranging mix of goods

earnings reports there >> some stocks to watch, apple has been marketed over weight. they're in the early stages of a more aggressive market strategy. up 3/4 of a percent. hundreds of workers in the past week have been fired after the company conducted a review the firing included engineers, managers, salespeople and factory worker elon musk said the company is facing bottlenecks barron's is positive on j.d..com barrons says j.d. could be the beneficiary of china's biggest shopping day next month. the ceo of airbus says

there's no reason to step down in an interview with the german paper he said he would do so if necessary. the airbus board expressed full confidence in the ceo last week. shares are slightly lower this morning by about a percent >> t-mobile and sprint are going to announce amerger deal reuters says the companies ever seeking to preser. serve. sprint shares are up a percent t-mobile is flat air mark is buying avendra from lond london the deal is worth more than $2.3 billion. the verimarc acquisition in other corporate news. it was food delivery service

uber came in in the second reporter the union is on track for $3 billion shares >> interesting thing about this, a lot of people think it's more profitable than the owe guess particulars need them to splinter off into other areas. there's an outright charge, when they compete with other companies, it doesn't seem that impressive the size is pretty impressive. it's thought the margin will be better even if they're not making that much money, can they splinter off? >> food delivery, taxies, obviously lots of other items. >> i was surprised it was that big.

very interesting definitely growing. still to come here on "worldwide exchange", the big push to jump start brexit negotiations austria turns right in the major development and catalonia round up the morning's top european headlines. later lululemon is making a big bet on china stick around "worldwide exchange" will be right back theshowedrs and that he wouldn't be able to retire until he was 68. the client realized, "i need to get back into the markets- i need to get back on track with my plan." the financial advisor was able to work with this client. he's now on track to retire when he's 65. having someone coach you through it is really the value of a financial advisor. your bbut as you get older,ing. it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain

and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember.

welcome back to "worldwide exchange." market update. yesterday we saw markets slight gains on friday and the dow was up 0 point be point 4% last week the nasdaq 0.2, 0.3. slight gains on the premarket. 30 points or so for the dow. let's have a look at oil prices because they gained anyway last week taking them nicely above $50 a barrel 1.4% to 52.5 the iraqi government has sent troops into the kurds region it's thought that this could have a more lasting impact on oil prices than perhaps previous conflicts in the reej gone let's discuss that in terms of what type of impact it might have joining us is richard from

london could this be a prolonged battle or sort of piece keeping at this stage? >> i think there is potential. we've seen efforts to try to get the two sides to talk really making no head way and then over the weekend we have the troops deployed there are reports of some quite bloody fighting. at the moment it looks like they're holding off or trying to hold off on severe escalation. there's a lot of weaponry. there is the security on the ground and the political consequences >> richard, some of the fighting we've seen in iraq and indeed in syria against isis in recent years didn't end up having that much of an impact on pushing oil prices higher. that's not really the base case here if fighting continues and escalates because of the level of production that happens in

this northern iraq region, is that right >> yes there's a couple of factors. i think the first thing is when i.s. advanced we were just at that point before prices started to collapse. oil market fundamentals were weakening. if anything, the violence in 2014 delayed the point of which that showed up in markets. but this time around i would say that almost in the reverse, the markets have been tightening all year still a lot of caution about whether that can translate into big oil price gains. we had trump's speech on iran, bond debt for venezuela i think that would fuel or feed into the tightening of markets. >> so we're seeing oil prices a bit more reactive to geopolitical concerns and flare-ups than we did in the

past if this does escalate, are you looking for crude oil to break out of the range we've seen. it's been relatively cautious. well, we think even in the background the fact that the market has been rebalancing does mean that we should be pushing past the brent now $60 a barrel mark either by the end of this year or q1 in '18 as crude picks up and demand strengthens. if you factor in -- at the moment we're talking about risk, not actual supply loss if you factor in supply loss that could push higher. >> thank you very much for that perspective. predicting brent gets up to 50 we're following another developing story in the oil market one person is missing and five

others in critical condition following an explosion on an oil rig in louisiana authorities say it's too soon to tell if any oil has spilled. the cause of the blast remains unknown. we'll get further details, we'll bring them to you. on global news this morning, spain appears to be rejecting catalonia's latest response of independence in a letter they refused to clarify whether it had declared independence or not. spain's justice minister says the response is not valid. >> the important thing from the story over the course of the last couple of weeks is it's cooled off independence is being pushed this isn't an issue at the moment it will continue to bubble on locally. it's stepped back from potentially being an issue. >> why the lack of clarity still a little vague it looks like independence is off. >> state politics as well. he was seen as not standing up to the madrid government by not

declaring independence he realized the realistic nature of what happened but that was not it. >> they plan to meet with the head brexit administration they're calling angela merkel over the weekend urging her to help break the impasse ahead of this week's eu summit. merkel had her own issues to deal with over the weekend her christian democratic union party suffered a setback the defeat comes as merkel fails to prepare a government. meantime, austria's conservative people's party is projected to win that country's general election a victory would make 31-year-old foreign minister sebastian kurt the national leader.

he vowed to cap benefit payments and they won't buy the base state is the freedom party further to the right if we rewind a few months, it didn't get there everyone when it went to the green, this was an example of austria stepping away from that fray over the weekend we've seen that that's not the case. >> not so much >> mr. kurz's party is the party and he's moved the platform to the right. either way, if that's the kurdish, it will be a right-wing government >> another topic for europe zwrieng moving on to asia, lululemon is making a big push

down into china. we are joined with more from eunice >> reporter: thanks so much, courtney it has six stores across the city it has plans to open five more by the end of this year. china is the fourth largest market for lululemon, but the ceo told me that he plans to change that by reaching out to more young chinese this is what he had to say >> it's a little millennial, rising class, 4.5 million millennial and more much them wanting to lead ak active lifestyle. it's right in the midst of a

boon gym memberships have doubled since 2008 you have 6 million this year part of this is driven by the government the government has been investing billions of dollars into public sports facilities. now i spoke to some analysts about lululemon's prospects and they say they have a lot going for them one of the reasons is foreign brands generally demand higher prices than local weapons. another reason they said is that yoga is becoming more and more popular here they said 4 million people were practicing yoga in 2009, now it's 10 million. a lot of wind behind lululemon's back. >> how do you say yoga in mandarin >> actually, i don't know. i don't know how to say yoga in

mandarin >> there we go i'm sure we will check back in. still to come, secretary of state rex tillerson says diplomacy will continue until the first bombs drop first, your city's national forecast from nbc's bill cairns. good monday morning to you, will fred and courtney finally cooler air arriving in the southeast. air conditioners have been on since about april. showers from washington d.c. and new york, southeast, mid-atlantic will clear up for a nice afternoon temperatures have dropped. you need the jacket in the northeast, mid-atlantic and great lakes. much cooler air. high sailing in the 50s and 60s. charlotte, 69 degrees. the warmth will come right back. quick blast of cool air and then the warmth comes back.

northern plains in the 70s mid-atlantic and new england areas should be in the 70s by the time we get to the weekend more "worldwide exchange" when we come back my name is jeff sheldon,

and i'm the founder of ugmonk. before shipstation it was crazy. it's great when you see a hundred orders come in, a hundred orders come in, but then you realize i've got a hundred orders i have to ship out. shipstation streamlined that wh the order data, the weights of , everything is seamlessly put into shipstation, so when we print the shipping ll everything's pretty much done. it's so much easier so now, we're ready, bring on t. shipstation. the number one ch of online sellers. go to shipstation.com/tv

and get two months free. helen: fand every year,, we get a giwe split it equally. except for one of us. i write them a poem instead. and one for each of you too. and one for each of you too. helen: cool. that actually yours... that one. yeah. regardless, we're stuck with the bill. to many, words are the most valuable currency. last i checked, stores don't take words. man: some do. oh. (alert beeps) not everyone can be the poetic voice of a generation. i know, right? such a burden. pay back a friend day is october 17th. get the bank of america mobile banking app today. welcome back let's get you up to speed on the market action this morning before your day kicks off in kind if you're here in the united states. futures are indicating a slightly higher open for the three major averages after we ended the week higher for the s&p, higher for the nasdaq

others down slightly for the dow. >> before that day really kicks off. it kicked off 23:40 ago. >> you're right. >> the top of "worldwide exchange." >> everyone is showered, ready, eaten breakfast and at work like we are switching focus. we continue to follow the deadly fires. scorched more than 220,000 acres. at least 40 people have been killed firefighters say they made significant progress yesterday on two of the biggest fires. officials warn major challenges do remain. we'll continue to follow that story and some of those harrowing pictures. now to politics. secretary of state rex tillerson making blunt remarks while talking about north korea. edward lawrence joins us with the details. good morning to you. >> reporter: good morning, wilfred. courtney the secretary of state and the president tried to delay or

disburse some tension between them the biggest issue is north korea. they'll be working the good cop in person, bad cop on twitter. secretary of state rex tillerson did his best to show no discord with the president in a series of interviews. tillerson danced around the nbc news reports that he called president donald trump a moron during a meeting. >> i'm not going to deal with that kind of petty stuff this is a town that seems to relish gossip, rumor, innuendo and they feed on it. >> still with big issues on the table, u.n. ambassador nikki haley did not deny tensions in the white house. >> i don't want to be near the goss gossip >> despite tweets from the president to the contrary as well as senator bob corker saying the president is publicly castrating tillerson, the secretary of state says president trump wants a diplomatic solution to north

korean, the recent south asian policy, there's absolute alignment between the state department, the other objectives. >> on iran the president decertified it he gave congress time to strengthen the 2015 agreement. >> they can do whatever they want to with enrich zblmt it is an absolute fantasy to suggest that we are going to be able to restart negotiations >> reporter: congress could also choose to end the iran deal or do nothing and the clock is ticking on iran for congress lawmakers have 60 days to act. >> thank you very much for that. edward lawrence in washington. "worldwide exchange", a roundup of the global market picture. >> later kpeicaernk claims collusion. he's now calling foul. the details when "worldwide exchange" continues. bathroom.

your privacy makes you my number 1 place to go number 2. i love you, but sometimes you stink. febreze air effects doesn't just mask, it cleans away odors. because the things you love the most can stink. and try febreze small spaces to clean away odors for up to 30 days. breathe happy with febreze.

o. more than 50 companies in the s&p 500 are set to report results this week. we'll get you ready and what to watch. on the move, oil prices rising on the news of a major oil move details coming up. snapping back. snap chat's popularity among teens. it's monday, october 16th, 2017. you're watching "worldwide exchange" on cnbc. ♪ ♪

good morning, warm welcome >> i'm courtney ragan in for sara eisen i get the song and the tease. >> it was a slow intro builder a bit of a delayed sort of punch into the open. >> i caught it i caught it at least welcome. thanks for joining us this morning. let's check in on the global markets to see where we're starting the day futures for the u.s. market are indicating higher this morning the dow is indicating higher by 30 points. the nasdaq higher by 12. on friday the dow, the s&p and the nasdaq all for highs the other two indices narrowly missing. for the week the dow ended up being down slightly. we can take a look at the ten year note and see where you are on the treasury yield for today. we are at 2.289. just a slight movement in the early goings this morning. not much of a reaction after we

heard from janet yellen. >> a look at asian markets this morning which for the most part had a decent week last week. crude was up some 3% would he saw hong kong up a decent amount. hong kong was flat, sorry. shanghai up 1.2. nikkei up and it closed on friday as a record not seen since december 1996. that high in the asian financial crisis low in japan back into the green. up again today half a percent. shanghai a little bit. we focus on the chinese people congress starting on wednesday european trade for you, we saw basically flat markets last week u.k., germany, france. spain was at 0.7%. russia and catalonia eased fractionally eased down a little bit. in general it is not an issue.

taking a look at the broader markets for you today. the dollar on friday was relatively flat. a bit of a mixed picture here. you see it's weaker against the dollar the pound however is stronger against the dollar today marginal move. we are following a developing story in the oil market today. that is pushing oil prices higher, both crude and brent on news that iraqi troops are seeing parts of oil rich curd s kurdistan. they're taking action after they voted for independence cnbc contributor told us a million barrels per day are in this region. you can see brent higher by 1.4% -- brent higher by 1.4% wti up to $52 a barrel sticking with energy, the sector has been a big under

performer. landon joins us with more on the year long look on the sector >> good morning. that's right the energy sector has been the biggest reiser for most of 2017. month to date, 75% things don't look much better as energy is on pace for the third negative year in the past. with stocks sliding down a slippery slope, we say the worst of the worst in the energy sector apache claiming 34% on investor disappointment raping resources falling 43% the worst of the worst, down 44% with raymond james saying the primary issue with companies like chesapeake. they're carrying so much debt and too much expenditures. >> landon, thank you very much for that big news still despite recent recovery. to this week's wall street

agenda, the economic data. tomorrow look for data on industrial production. wednesday we get housing starts. friday you'll see home sales more than 50 companies in the s&p 500 and nine dow components report earnings this week. that includes netflix. getting results from johnson & johnson, verizon, procter & gamble and big list of reporters. shares of walmart gaining nearly 10% last week let's bring in stacy willis, president of s.w. advisers stacy, thank you for joining us. walmart did meet with analysts last week and laid out the plan going forward. a lot of it is what we already knew they're trying to leverage the ecommerce platforms together i guess they kind of started there. clearly the market likes to get herd >> yeah. i mean, i think walmart has been

doing a great job certainly in stores and investing once again and it's really paid off for them they've had ten quarters of positive traffic here. that's not to be underestimated, however, they're talking about flat earnings this year and maybe up low to mid single digits next year this stock is 19 times i would argue you look at the world, look at the ecosystem around walmart you have them going after pricing. you have amazon with their purchase of whole foods and you have amazon going more and more into the private label so i would argue at 19 times with maybe flat to single digit earnings hard to put fresh money in that stock. >> if you look at the xlt, the retail etf down 4% last week the worst week of the year we saw a bit of a larger dip in the year prior there's not a ton of positive investor sentiment going into the holiday season for retail. >> no.

>> you bring up a great point with amazon. very hard to ignore. some vendor issues perhaps or maybe some vendor conflicts with amazon trying to go into apparel build up their own private label. some of the things vendors as gap and nike what does that mean? quality out of amazon perhaps? is that going to put pressure on the vertically integrated players? >> sure. so certainly we've heard rumblings about amazon going into ath leisure it sounds like of course they are. they're going after every category that has high return and certainly ath leisure would fall into that category here yes, they are going to use the same manufacturers as the big guys, as nike. so you have to look at that. from the consumer's perspective, why am i paying all of these premiums if i can get it private label for a cheaper price? >> how long before they get a consumer ground swell for amazon

branded ath leisure. if i'm shopping for some kind of workout gear, am i, i guess, even a aware that i'm buying is amazon's own brand how long does it take to really, really eat into a nike or an a -- adidas. >> sure. when amazon does a branded private label that a consumer doesn't necessarily identify that as an amazon brand. the price, if it is compelling enough, the consumer tries it once if they like what they see or feel, then certainly they're more willing to repurchase the brand. we've seen that with the likes of high mark come into the state. the ath leisure. people have responded. >> keep those return rates really slow.

if you were a company like amazon you have to care about that cost at some point. >> sure, you do. interesting they're trying to get a wardrobe you can try whatever you want and send the rest back obviously their priority is not the bottom line when they go into a new category. eventually it does matter. >> i don't know when that is thank you so much, stacy >> thank you. >> thanks for joining us time now for our top trending stories "saturday night live" ripping into harvey weinstein and the new sexual harassment allegations surrounding him. let's take a listen. >> apple has announced that it will add hundreds of new emojis to its ios system, a person at a spa, a vomiting face and a shhhing finger giving fans the ability to

describe what it was like to work for harvey weinstein. snl came under fire for not talking about it they hosted a fundraising event and made various jokes on the topic and not going down well. snl was criticized for not bringing enough and a comedian bringing too much. it's a difficult topic. >> it is it is. sometimes oh, too soon other times you feel like you've got to go there if that's what you do tough one. big name stars rallying to raise money for puerto rico and the hurricane relief efforts jennifer lopez, marc anthony, alex rodriguez and ellen degeneres raising $30 million. they pledged money to benefit puerto rico. these performers included ricky

martin, demi lovato and maroon five that area of our country, it is a u.s. territory, needs so much help so much more that we need to continue to pay attention to infrastructure is unbelievable >> absolutely right. a lot that has to be done to help out. meantime, "game of thrones" is heading down the aisle. she announced her engagement to joe jonas. the pair both posting this picture to the instagram account. it's already got 1 million likes. congratulations to them. >> wow. >> a couple of "game of thrones" weddings coming. delay production of the next series to allow the cast to all attend that wedding. >> really? >> apparently. >> oh. >> that was one of the stories >> i don't know anything about "game of thrones" so i don't believe you.

law enforcement on how to handle self-driving car crashes. the company's self-driving car collisions has been testing in california, south florida, arizona, texas alphabet has taught its cars to hear and see sirens. >> we'll see we'll see if it all comes together i dmoent if people are happy with it. meantime, it looks like snap chat is more popular with teens than ever. piper jaff free are surveying teens about their habits 47% of teens say snap chat is their preferred social media platform up from 39% in the spring still growing within that all important demographic. >> even with the instagram stories. so much like snap chat now. >> that's impacted snap chat for all of the users i guess i'm meant to be a millennial in that crucial young

demographic, they have that sense. i think the question still is whether when those people age do they still stick with the platform or do they grow out of it. we'll go back to traditional tv and newspapers. >> it will be cooler to have no profile whatsoever. >> before you get rid of some of the platforms, you'll be on all of them. it's too many. switching to sports. colin kaepernick is ready to fight with the nfl the former san francisco 49ers quarterback has filed a grievance with the league. he remains unsigned with teams because of his protests. sources tell nbc sports kaepernick is seeking to terminate the current labor deals with the players union another leg of this ongoing

story. >> keeping headlines. coming up, forget the internet of things the new buzz word is the internet of goods. another check in on european trade. ekorhe essentially flat last we f t free markets and essentially flat this morning. a little bit of green in the screen .2 perfection percent.

most american homeowners would be shocked if they knew just how rich they were. the average american home value has increased $40,000 over the last 5 years. but many don't know you can access that money without refinancing or selling your home. with a home equity loan, you can pull cash out of your house for anything you need- home improvement, college tuition, even finally getting out of credit card debt. come to lendingtree.com to shop and compare home equity loans right now. because at lendingtree, when banks compete, you win. you won't see these folks they have businesses to run. they have passions to pursue.

how do they avoid trips to the post office? stamps.com mail letters, ship packages, all the services of the post office right on your computer. get a 4 week trial, plus $100 in extras including postage and a digital scale. go to stamps.com/tv and never go to the post office again.

welcome back to "worldwide exchange." i'm wilfred frost along with courtney ragan time for the must reads. my picks in the financial times, china's next five years, only xi is indispensable part of the big read column when they do a deep dive into a topic ahead of the chinese people's congress starting on wednesday this week. tom mitchell writing in his political ritual whose secrecy is rivaled with the selection of the new pope after about a week of deliberations mr. xi and his new leadership team will walk on to a stage and stand in front of the new media. even the number of seats on mr. xi's new politburo standing committee, they will not be known until the last minute. they had nine members and it shrunk to five it elevated the power of the presence within it that's how secretive this is there will be a big focus for

asia and the rest of the world key figures to watch you might get promoted and demoted. should be the most powerful to be demoted it's a deep dive. my pick is from the wall street journal written by michael man dell chief economic strategist, rather, at the progressive policy institute it's titled get ready for the internet of goods. the rise of ecommerce and the improvement in the distribution of goods will help workers increase wages and help the economies in many areas of the country. if ecommerce is any guide, the jobs created for the internet of goods will require workers to have a good mix of physical and cognitive skills moreover, it will be more evenly spread around the country boosting growth and america's hartland as well as the coast. i picked this one today because at the end of last week i focused on retail workers and

what happens to retail workers in the stores. while the stores are closing and ecommerce is rising, the jobs don't transfer it's a totally different skill set. a job and a warehouse is much more like an assembly job than it is a customer service when retail workers lose jobs they're moving more to work at an insurance company, food service, hotels, hospitality i hear what he's saying and i look at the stats, i can poke holes in the arlg gumt. >> not as clear of an argument >> worth reading for sure. we are approaching the top of the hour. getting ready for "squawk box. andrew joins us from new york. what's coming up >> we have a big show ahead including a debate about whether the stock market is 1987, which would not necessarily be a good thing. something to watch for a little bit later in the show. we're also going to talk nafta with john engeler. i apologies. we'll see the ceo of sotheby's,

tad smith. and then we have an astronaut who's going to be on the show. >> cool. >> were you shake shack fans at all? >> love shake shack. >> sandy myers is going to be here. >> i like it. >> pretty much what we've got. >> is he bringing shake shack this morning >> i don't know. is danny bringing by burgers >> i want to stop by. >> we don't know >> i hope so. >> whether on person or in tv, thank you very much. "squawk box" in 11 minutes' time. still to come on "worldwide exchange", more to go. earnings season is getting into full swings. we have the expectations for the season and more straight ahead stay tuned you're watching "worldwide exchange" on cnbc okay, i never thought i'd say this, but i found bladder leak

underwear that's actually pretty. surprised? it's called always discreet boutique. it looks and fits like my underwear. i know what you're thinking.

how can something this pretty protect? hidden inside is a super absorbent core that quickly turns liquid to gel... ...for incredible protection. so i feel protected... ...and pretty. new always discreet boutique. welcome back to "worldwide exchange." let's check in on futures which

are pointing higher. last week we did end the week with slight gains and -- ended the day friday with slight gains. joining us now, michael farr, president of farr miller in washington great to see you as always i guess the focus last week continues to be on what the fed is likely to do based on comments from janet yellen in a minute and the disappointing cost cpi and the possibility of derailing the cpi. >> it's great to be with you early in the morning the moon was still across the water this morning they said they are going to taper and they are making an automatic thing, the taper and falloff. they don't want to make it

clear, the fed hike in november looks imminent i think there's a decent chance that president trump reappoints janet yellen i don't see any call for president trump to nominate someone more hawkish when he's trying to get other tax plans through to boost the economy he doesn't want a hawkish fed chairman who's tightening. if it's not janet yellen, jay powell is another candidate. he's going to do a fabulous job, apolitical, thoughtful job there. lots of news coming out of the fed. earnings season. a lot to watch tell andrew ross sorkin, now you have to get back into it >> what's the reef cheen why

it's difficult >> the bond market started to fall apart and we had things -- people don't remember them, but doctors used to carry beepers and pagers the paging companies were the dotcoms of that time they were all very high. there was a lot that was driving stock valuation, but the bond market always really seemed smarter than the stock market started to fall apart and crack in august. the market started to buy. that hasn't happened bonds are around 220 on the ten year the stock market stays intact. this thing has done nothing but go up. people don't think stocks can go down anymore. >> michael, a crucial difference is that the rates are going in the opposite direction and that is a potential bearish signal based on what you said.

>> no, i think the rates are staying low. the rates went high and started to break the rates started to go up and fall apart in august of '87. it was that break there that the stock market didn't crack. we were talking about it at the time, i wonder why the stock market is holding up when the bond market isn't doing well bond market's holding in if interest rates stay low, we have to look at the outside forces in north korea. but the economy right now seems to be pretty solid >> so, michael, over the weekend janet yellen spoke at a meeting and she said inflation is the biggest surprise when it comes to the economy so far this year. what do you make of inflation levels where they are and how that dictates the fed policy whether it's janet yellen or jay powell and how closely they're going to need to watch that part

of the mandate >> courtney, i think that they've got to watch that part of the mandate that's the only part they have left to watch. we're at 4.4%. check the box, we're good. >> now we have to check -- now we have to take a look at what is going on and they're watching it which is why i think they're certainly going to hike again. we're not only seeing it here in the u.s. but also around the world. china ppi number we just saw came out, very, very strong. producer price price gains around the world that can bleed back into the u.s. that's what we have to watch and it is a bit counter intuitive, i'm not sure i understand it, to see the fed tightening rates at the same time that there's such a strong push for fiscal stimulus

why are we trying to push for more stimulus. watch your numbers it's dangerous out there. >> we'll have to g tethe answer to that question next time michael farr foor, miller and washington. that's it for "worldwide exchange" this morning "squawk box" comes next.

good morning stocks are set to rally again. earnings season now heating up this week's agenda, we'll take a look at that oil prices are on the move as iraqi forces launch an operation for kurdish held oil fields. we'll show you the reaction in the crude market i think we're above 52 meanwhile, the ten year is below 230 again. plus, p&g has declared victory in the proxy battle but trian says the vote is too close to call now they're headed to the snake

pit. we'll explain straight ahead it's monday, october 16th, 2017, and "squawk box" continues right now. ♪ ♪ live from new york where business never sleeps, this is "squawk box. good morning, everybody. welcome to "squawk box" here 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. last week was a strong one for stocks dow was up by 100 points over the course of the week this morning looking at green arrows with the dow futures up by 34% nasdaq indicated to open up by 14 points. the s&p indicated to have new data that is well above forecast. it