u.s. futures deep in the red adding to yesterday's selloff. janet yellen kicks off her last two-day policy meeting as fed chair. and the countdown is on what wall street will be watching as president trump delivers his first state of the union address. it's tuesday, january 30, 2018 "worldwide exchange" begins right now. ♪ good morning a warm welcome to "worldwide exchange" on cnbc. i'm wilfred frost. let's get to the global market picture. we are seeing futures decline

over 100 point for the dow about 120 points the s&p is down 8. the nasdaq down 29, 30 points. just over a half percent for the dow. less than half a percent for the s&p and nasdaq this comes off 0.6% declines yesterday. the nasdaq has now declined three days out of four while yesterday he was saying all 11 sectors of the s&p were liar last week, yesterday all 11 sectors of the s&p were lower. but let's put this slight decline yesterday and this morning into perspective we're still up 7% to 8% month to date for january one of the best starts to a year since 1970 a bit of a pullback yesterday is in perspective we are continuing that selling momentum one of the factors yesterday people pointed to was rising yields the ten-year hitting a three-year high. we have come back off that today. maybe that is a reason markets can find impetus during the

course of the session. 2.69 on the ten-year note. asian equities were selling off. did have a negative session, and looks relatively scary when you look at the percentage declines. nearly a percent and a half for japan. hong kong down over a percent. some returns these markets have had are stand-out. hong kong set to have about a 10% gain for the month as a whole. japan up about 2% to 3% for the month as a whole even after the declines, that's despite a much stronger yen still these declines in perspective. european trade, similar theme. germany an france d france up a% the declines there, you can see far more muted germany down 0.2%. oil prices were down about a percent yesterday. down another percent or so today. strong month for oil up about 7%, 8% for january. dollar board, we had a weak

dollar recently. it did gain yesterday as we saw the yields rise, 0.3%. that's something to keep an eye on, if we see a correlation of stocks selling off on days the dollar rallies, it might mean the weaker dollar is needed for markets. just a one-day correlation you can see today, dollar is off about 0.3% against the yen not doing much against the pound and euro gold prices down nearly a percent yesterday. let's have a look today. basically flat it's been a decent month and start to the year. december and january for gold prices in face of that weaker dollar let's talk about the early market selloff joining me is steve grasso from stuart frankel good morning to you, steve clearly a decent selloff yesterday. continuing today what's the main reason for that? a lot of people pointing to rising yields yesterday. >> i think you did a great job in framing it. these are record out of the gate performance for worldwide global markets as well as the s&p

and i think when you say what can you point to, rising yields, yes. as good as any but if you look at the -- this is the second longest time that the s&p has been above the 200-day moving average, as far as daily talent. people are trying to lock in profits, they're nervous they want to have realized gains. >> so yields clearly one factor yesterday some people talking about. the dollar also will a strong day. it wasn't markedly strong. up 0.3%. is that something you are going to look at, if we see yields continue to pick up and it drags the dollar higher, is that something that could spook markets given so far we've had strong markets correlated with a weak dollar? >> i think that's a fair point if you look back to pre-united states elections or right around there, you see nothing but a declining dollar and a rising stock market

so we do need a weaker dollar. i think people who say you don't need a weaker dollar are kidding themselves there was much to do last week whether it was mnuchin or trump talking the dollar up or down. but everyone can agree the dollar needs to be weaker or lateral at best now for a stronger market. >> when we consider earnings season, it's been kicking on, it's a big week for tech earnings to come clearly the nasdaq has been an area where we've seen profit taking in the last couple of days or so how important do these earnings reports that come out this week, looking at a schedule of what's to come, facebook, apple, qualcomm, alphabet, amazon, huge week for tech companies, will they move sufficiently to justify the stomg mock moves >> if you look at netflix, they moved sufficiently but you will see headwin dzhea

facebook that could be a headwind apple has been the wildcard. it's flat on the year, and there's been a lot of speculation on whether or not they're running out of gas so i think as the nasdaq, whether it's amazon or you'r looking at names like alibaba, which i'm long, and long apple as well, if you look at large cap tech, there's some major questions, but that is where you are getting the growth people never established them as the -- let's call it the tax reform trade it was also the russell 2000 after apple and talking about the money coming back from abroad, the large cap tech, which may be the tax reform trade. we do need tech for this market to ratchet higher. there are questions being asked, but ultimately these are names you should be buying >> elsewhere, if you see a

continued selloff today, the next few days what do you want to be topping up on? >> i think you need to look at -- right out of the gate, the tech the etf for technology the last five years has been the out-performer. when you look at the discretionary names, discretionary names in healthcare, with tax reform, the individual has more money in his pocket corporations have more money in their pocket so everything should rally if i asked you when is the last time we had a 21% corporate tax rate in america, the answer would be 1940. nobody knows that. a lot of things go into the wildcard mess of the stock market but with a corporate tax rate at 21%, there's no way you can't -- you can sit on the sidelines for long yes, you could have a pullback, keep it in perspective and still

buy the market on weakness >> steve, i'm glad you posed that question and answered it yourself as opposed to me. i wouldn't have gotten it right. i know it now. it's locked in my brain. steve grasso, thank you very much for getting up early with us >> we also had eurozone gdp out. 2.6% year-on-year, consensus was 2.6% prior was 2.6% growth there continues to do well of course the rising yields off the back of that strong growth we've seen in europe is a big reason why yields have been rising around the rest of the world. we talk about the 2.7% we saw in the u.s. ten-year. the german ten-year hit nearly 2.7% yesterday just in early december it was below 0.3% so, only a 0.4% rise more than doubling so the delta there of the increase in yields in europe is high one reason why the euro has strengthened there is the german ten-year

bund there's the speed of the rise from early december through to january. and that ongoing strength in eurozone gdp a big reason for that there's a pair of economic reports on today's agenda the monthly s&p case-shiller home pricedex is out at 9:00 p.m. co 10:00. in earnings, we mentioned already, lots of names to come this week. mcdonald's, pfizer, aetna and harley davidson reporting before the opening bell after the close, we'll hear from chubb, amd and electronic arts and that continues throughout the week another big focus today, trump's first state of the union address. he is telling reporters that the speech will cover the great success of the stock market and tax cuts passed at the end of last year. he will deliver the state of the

union address tonight at 9:00 eastern. i guess a bit of a pullback the day before and the day of is just kind of irony, i suppose. still we can't argue against the great performance over the course of the first year in office shares of metlife are under pressure after the company delayed its quarterly results. landon dowdy has more on that. good morning >> metlife delaying full results for the fourth quarter earnings release. here's why they're disclosing the scale of the records mistake that left possibly tens of thousands of workers without monthly pension benefits the short fall will prompt financial revisions and metlife expects to increase reserves by more than 5$500 million to deal with the overdue benefits. as for earnings, the firm had originally planned to report full-year results tomorrow the company postponed them until after the market close on february 13th. they did, however, give wall street a preview metlife saying it sees adjusted earnings between 61 cents and 66

cents a share, that's well below analyst forecasts of about $1.08 a share. shares of the insurer tanking on that news as much as 10% t >> thank you very much for that. jpmorgan says ceo jamie dime listen stay in his role for about five more years. that time frame could suggest he is not planning on running for political office jpmorgan also sending a signal it's starting to plan for life once dimon steps aside appointing pinto and morgan to co-presidents. dimon says five more years while the board of directors and i have agreed to continue in my current role for approximately five years, an odd statement to get that from a ceo when the

time frame is so long. therefore that motivation very much trying to put to bed speculation around politics and the like on that front smith and pinto, 59 and 55 promoted to co-president and anointed as the most likely to take over from jamie dimon if anything were to happen soon though that's not expected with this five-year announcement. that means the longer term successes of the cfo, the head of asset management who are the most likely medium and longer-term successors if dimon just stay for the full five years because of their age moving forward, waymo finalized an order for thousands of driverless pacific hybrid

vehicles alphabet stock down slightly stocks to watch today, renesas dismissed a cnbc report that it is in talks to buy maxim integrated products. sources said a deal could be worth up to $20 billion but nothing was imminent maxim rose 2% yesterday 12% yese report, but declining this morning on news that it is said not to be happening. s.a.p. to buy callidus for 2$2.4 billion callidus up 12%. blackstone is in talks to buy a majority stake in thompson reuters financial and risk businesses for $17 billion. still ahead on "worldwide exchange," to russia without

love the treasury department just released a list of top russian businessmen with the closest ties to vladimir putin the kremlin already firing back. we're live in moscow with the fallout plus more on the premarket selloff. t lt 45 points in the premarket inheas15 minutes new new york is sparking innovation. you see it in the southern tier with companies that are developing powerful batteries that make everything from cell phones to rail cars more efficient. which helps improve every aspect of advanced rail technology. all with support from a highly-educated workforce and vocational job training. across new york state, we're building the new new york. to grow your business with us in new york state, visit esd.ny.gov. somesend you and your family overwhelrunning. y can...ate,

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welcome back to "worldwide exchange." i'm wilfred frost. if you're just waking up, let's get up to speed on the market action we're down 152 points, 155 points on the dow. we were down about 120 at the start of the show. the s&p is down 11 the nasdaq down 36 yesterday we were off around 0.6%, 0.7% all 11 sectors of the s&p were lower yesterday. again, month to date these indexes are up 7%, 8%. it's a bit of final end of january profit taking. more than anything else. let's look at treasuries the ten-year hit a three-year high it's slipped back today, so the price is rising for the ten-year, the yield is falling, 2.686. exxonmobil plans to invest

$50 billion to expand its business in the u.s. ceo darren woods says the move is possible because of the new u.s. tax law exxon intends to increase oil production in texas and new mexico and build new manufacturing plants it's up slightly today >> revlon ceo fabian garcia is stepping down two years after taking the helm of the toz mcosc company. paul meister will oversee day-to-day operations. rambus reporting fourth quarter results in line with estimates but has a weak first quarter outlook due to new accounting rules it's down nearly 7%. the white house will not apply new sanctions on russia for its alleged meddling in the 2016 election saying current sanctions are already working this comes as the treasury department released a list of top russian businessmen with

close ties to vladimir putin the u.s. insisting this is not a sanctions list but moscow fires back saying the list identifies everyone on it as an enemy of the u.s. joining us is now is max seddon. this list is incredibly long inclusive of all potential people with close ties to vladimir putin but no sanctions or additional sanctions were imposed is this an increased rebuke for russia or a reduced one? >> for the moment it doesn't mean anything. it's a long list as you said, there's 96 different oligarchs who are on it the reason that there is is because what we have seen published is from unclassified sources. this appears to be the most recent edition of the forbes list if you go on the russian forbes website there are 96 people with a net worth of a billion dollars

or more, a lot of whom who don't have visible ties to the kremlin at all like the ceo of yandex, this sort of google yahoo! competitor here. or people who built their businesses without any real kremlin connections. the classified part is supposed to say -- spell out for us a little more clearly how these people have their money, whether they're involved in corrupt deals, are they close to putin, whatever that means. but since they just literally copied and pasted this list, and the officials officials on the list are mostly copy an pasted from the website, it doesn't inspire confidence in that classified assessment. >> in terms of what this means for these individuals business dealings a few people we know well at cnbc, does it impact their able to do business going

forward in is this a black mark on their name in international circles? >> for the moment no we are not necessarily seeing any action being taken the administration doesn't want to do it we don't know what congress is going to do. a lot of these people, if you look at andrey kostin, andr andrey guryev, almost none of them are commenting on this. but the oligarch people i've spoken to have been speeen sende the same screen shot from the treasury report. >> max, give me a quick update on the latest on the russian election does this have any impact on muddying the name of vladimir putin or is he still hard o

odd s-on forgaodd s on favorite to win >> who else would you like to name much like the earlier sanctions from the ukraine conflict, this just consolidates the elite around putin a putin spokesman said this is basically a list of enemies to america. if anything, this will be a boom to the russian government. because they wanted to get oligarchs who had money in the west, to get all of them to move their money back to russia but everybody is so spooked about this now, that the kremlin is prepared to issue a $3 billion government bond with special discounted terms for oligarchs, so they can buy the bond and thus move their cap pal back onshore so the kremlin that nothing to worry from this as things currently stand. if further action is taken, that's a different matter. >> max, thank you very much for

joining us still ahead on "worldwide exchange," much more on the early market selloff dow futures pointing to 143-point decline.

welcome back to "worldwide exchange." futures pointing markedly lower. 150 points almost on the dow the nasdaq down 35

the s&p down 10. so we're looking at over half a percent of declines at the open. we were down 0.6%, 0.7% yesterday. all 11 of the s&p sectors were lower. of course we're still sharply higher for the month of january. 7 % higher to be precise treasuries cited as a reason yesterday for that selloff yields crossed 2.7 on the ten-year back below that level this morning. let's check in on the dollar, which was higher yesterday, only by 0.3%. today not doing much a bit lower against the yen. 0.3% and similar strength for the euro and the pound against the dollar, about 0.2% asian trade did play catch up to the down side with the u.s. yesterday. down over a percent for most of the major markets. the nikkei down 1.4% the markets are also still looking at gains for the month as a whole japan about 2%, despite a strong yen throughout the course of

january. hong kong up almost 10% for the month as a whole so profit taking after a strong month. europe down today, but not by much a few tenths of a percent. france and germany up about 3% still ahead, a round up of the top headlines, plus we're counting you down to president trump's first state of the union address. what will the street be watching for in the big secpeh? we're back in a couple minutes a) when you have a really traumatic injury, we have a short amount of time to get our patient to the hospital with good results. we call that the golden hour. evaluating patients remotely is where i think we have a potential to make a difference. (barry murrey) we would save a lot of lives if we could bring the doctor to the patient. verizon is racing to build the first and most powerful 5g network that will enable things like precision robotic surgery

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dow futures down triple digits after stocks post their worst day since september. the countdown is on. president trump delivering his first state of the union address tonight. and a major league decision on one of baseball's most controversial mascots. it's tuesday, january 30, 2018, you're watching "worldwide exchange" on cnbc. ♪ good morning a warm welcome to "worldwide exchange" on cnbc. i'm wilfred frost. let's get straight to the global market action after yesterday's 0.7% selloff it is continuing this morning. futures now down 162 points on the dow. the s&p down 12. the nasdaq down nearly 40 points about a half percent or so of declines at the open following yesterday's selloff which saw all 11 sectors of the s&p lower.

but again, we are still very nicely higher for january. by 7% or 8% or so so a small pullback relative to the gains we've seen to kick off the year >> the ten-year went above 2.7%. it's just come below that level, 2.684, the yield that we got on that at the moment asian equities sold off overnight. the nikkei off 1.4%. hong kong down 1%. up nearly 10% for the month of january. januar japan and shanghai up 2% and 4%. european trade is down, but only down 0.3%, 0.5%. that's accelerated a bit to the down side in line with u.s. futures over the course of the last half hour

we did get gdp out of europe this morning, 2.6% year on year, as expected and the same as the last reading growth does continue to impress there. commodities for you, oil down nearly 1% yesterday. down nearly a percent or so again today. improved a bit down 0.6%. oil still strong for january itself, up 7% or 8%. dollar board for you, we saw the dollar rally with those higher yields yesterday 0.3% or so higher. down about that much today you can see that is against most of the major currencies, euro, yen and pound. gold prices for you, down 0.9% yesterday. down slightly today. in fact, rebounding a bit. up 0.3%. it was down a bit at the open. and it is up 2% for the month of january. big focus today on president trump's first state of the union address. he will deliver it tonight let's get to eamon javers with what we can expect to hear from the president. >> good morning. they cleared the president's

schedule for the day he will be preparing presumably for much of the day today before he heads over to the united states capitol the address is in the 9:00 p.m. hour east coast time tonight what can we expect from the president tonight? the white house has given us a list of topics that will be included in the address. no specifics just yet. but we know he will talk about jobs and the economy he will talk about infrastructure unclear whether we will get details of that long-awaited infrastructure plan. immigration will be a hot topic. the president has been talking about a possible deal on daca, whether or not they can get to that after this speech remains to be seen trade as well. we also expect the president in this format, which is an address to a joint session of congress, it is his first state of the union officially, but last year after just having been sworn in, he did that address to a joint session. which is sort of one level down from a state of the union.

there was an emotional moment where he called out karen owens, the widow of navy s.e.a.l. william ryan owens who was killed in action this standing ovation for her lasted for a very long emotional moment this is the kind of thing that the presidents can do in state of the unions that resonates with viewers we expect the president to have a number of guests in the first lady's box as well we expect him to call out some of those guests. look for some of those emotional moments as well as some policy details that we might get surrounding infrastructure >> compared to that other joint session speech a year ago, do you feel like the house, the two houses are more united or divided? is he more likely to get more support from democrats for moments like that or less likely >> i think for a moment like that, when you're talking about a navy s.e.a.l. killed in action, you will get unity inside the chamber

but washington is divided on all of these issues, including immigration. bitterly divided on that one infrastructure is the one area where you might find common ground between democrats and republicans. the question is can they come up with a way to pay for the president's plan the president has been ping-ponging around a bit in terms of the numbers on infrastructure they initially talked about a $1 trillion package, with 2$200 billion in direct federal spending, then 8$800 billion in incentivized spending by state and local governments in the private sector last week the president talked about a 1$1.7 trillionpackage not clear what he has in mind there. maybe we'll find out more details ton. >> eamon, thank you very much for that we will continue the discussion with sara fagen who joins us, former white house political director for george w. bush and a partner at ddc public affairs. good morning to you. thanks for joining us.

>> good morning. >> clearly there's going to be a tone that's going to be important to strike and some policy initiatives that we'll hear about what's the most important between those two? >> i think if you look at where president trump is in his presidency, he's had this incredible legislative success in tax reform, something that republican presidents have tried for decades to do. he has a moment to try to bring the chamber together his tone is going to matter in how he does it this is not a time to take a shot at chuck schumer or a celebrity, which he's prone to do from time to time it's certainly not a time to take after his opponent from the 2016 election, which he continues to do. i would argue that the policy will work itself out in terms of the sticking to the script and sticking to the intended tone, he clearly managed that in davos recently

is that something you expect him to do tonight and he'll be coming off tomorrow morning with plaudits and the ability to congratulate himself >> i think he will we've seen in the past when president trump works from a script, which he did in the last time he addressed the joint session of congress, when he works from a teleprompter, a tight scripte, he does well he sticks on message he has language that's bipartisan in tone that's not to say the democrats will like this speech. some of them are protesting it there is a lot of rancor in washington, but this is a big opportunity for him particularly on immigration and infrastructure, which i would expect him to go ahead and talk about both of those in some detail immigration probably more so than infrastructure. >> the stock market selloff started yesterday, continuing today, small relative to the

gains and the trump presidency if we see that proliferate more, is that a big issue for the president given how much he has claimed success for the upside >> the market has not been immune to what happened in washington the one area where we have seen a lot of -- they've been attached is over this tax reform plan, both the beuild up to it last year and once it was past so i would expect donald trump to take a victory lap. almost every day we see an american company come out with a significant benefit package, commitment to planned investments in the united states i think that will continue to help the market in the united states it will continue to help peoples feelings and their future spending habits, because they see this money pouring in to the economy. in some cases into their own paychecks. >> sara, thank you very much for joining me

sara fagan on ddc public affairs. futures are down triple digits 157 points now for the dow nick benbrook from wells fargo joins me clearly yesterday's selloff came alongside a brief dollar rally it was up 0.3%, which may have implications for the equity market what's your view in terms of that level of the dollar at the moment is it oversold >> possibly. it's been quite weak at the start of the year. i think the overall trend still remains lower. if the look at the federal reserve, it's getting less and less support from the rate hikes. so, we think that, you know, over time we'll see further dollar weakness. >> getting less and less support why? because the early hikes have more impact on currency markets than later hikes we feel other central banks are moving to those hikes? >> that has a lot to do with it.

the federal rate hikes are a part of the fabric if you go from negative to positive that has a significant impact, or the uk going from zero to slightly positive. what do we >> what do we expect from the ecb? is there enough to support a rate hike this year? >> probably not this year, maybe early next year. one other thing we've been looking at, not only the interest rate hikes, but the slope of the yield curve has been interesting in the case of the u.s., we've seen a flattening of the yield curve, which implies that we're seeing a lot of rate hikes, maybe not many to come with europe, we have a steep yield curve. it's -- the fact that we might see rate hikes next year and years bond that will help the euro that's up today in response to those gdp figures. >> clearly the gdp number we got recently was disappointing is that a concern for you? did it lead you to adjust your gdp forecast for '18 and '19

>> no. the tax package last year was the big thing for the u.s. i think we're going to see at least a decent growth in 2018, 2.75% so not a big deal. >> another factor some people cited for the selloff in equities yesterday, was that the ten-year was at a three-year high off that at moment what do you expect for the shape of the yield curve coming on for the rest of this year and those longer-term yields >> i think we'll probably continue to see a flattening of the yield curve. the two-year yields will go up, and the ten-year yields will go up by less again, what that means is that every rate hike you get from the fed, there's one less you have to go until the end. that's probably a negative for the dollar we're looking at 1.30, 1.35 for the euro the yen we think will be stronger against the dollar as well >> all right nick, thank you very much. the financial sector has been off to a solid start so far this year. landon dowdy is joining us now

with the sectornomics deep dive on financials. >> financials have had a good run so far in 2018 the sector is up about 7.5% in january. posting its best monthly gain since october of 2015. that's slightly better than the s&p, which is up 6.7%. but financials are only the fourth best sector lagging consumer discretionary, healthcare and tech. who are the winners and losers bright house up 15% year to date, beasted by green light capital announcing a new stake in the insurer state street up almost 4.5%. t. rowe price up 12%, and has been a beneficiary of stronger markets, tax reform. the laggards, the entire sector is in the green except for progressive, down 5.5% allstate sliding 6%, and

assurant down 6.5% sun trust has a buy rating on expectations of stabilization in more dama mortgage delinquencies. notice anything wrong with this ticket? a massive mistake on the state of the union invitation has social media buzzing this morning. a terrible spelling mistake. we'll discuss that and more still to come. first here's the national weather forecast from bill karins good tuesday morning to you. a little overachiever of a snow event on long island and southern new england it was looking like a dusting to two inches, some areas have picked up three to four inches. some school delays this morning. secondary roads will be worse. treated roads should be okay also snow in areas of

pennsylvania and central new york so as we go throughout the morning, we watch this storm slowly exiting we will also still see snow showers lingering around philadelphia, eastern pennsylvania as we go through the lunch hour by the afternoon ride home, no problems as the storm system clears out it looks like we'll get another one two two inches boston cape cod. an inch atlantic city to philadelphia the rest of the country looks great. that's youbuner siss travel forecast more "worldwide exchange" when we come back any object. any surface.

if you've got a life you gotta swiffer

welcome back to "worldwide exchange." if you're just waking up, let's get you up to speed on the market action. futures pointing lower by 155 points on the dow. the s&p down 12. the nasdaq down nearly 40 points that's over half a percent of declines for the dow coming off the back of 0.6% or 0.7 % declines yesterday fre treasuries for you, we crossed 2.7% on the ten-year yesterday, but now at 2.68. time for our top trending stories. landon dowdy is back with those. >> so many good trending stories. this is a favorite the official tickets to the state of the union speech includes a glaring typo. as you can see here, the ticket reads state of the uniom on it

instead of the word union. the tickets were corrected and redistributed after realizing the initial mistake. >> this was on every single ticket >> yes one house member from arizona tweeted this >> terrible. but any way, they corrected it tom hanks has been pegged to play the beloved mr. rogers in a biopic titled "you are my friend." it's based on a profile written about the tv child i con twitter weighed in, most everyone was in favor. one user tweeting tom hanks is going to play mr. rogers because of course he is. who else to better portray a national treasure than another national treasure. another twitter user posted this, yes, tom hanks, i will be

your neighbor. did you grow up watching this? >> no, on the way in, i had to google who mr. rogers was. >> what did you think? >> i didn't read in detail, but i agree tom hafrpgs s hanks is treasure >> and he looks like him i love this one. the times are changing at medieval times the dinner theater where diners watch knights joust and eat meals with their hands is replacing all of its kings with queens the change apparently falls under the new plot line which has the queen taking over for her father after he's passed away queens taking over watch out. >> i think that's all good i also had to google what medieval times was >> it's like dinner theater. eat a big old chicken leg. >> sounds fun. >> get to play the king. the cleveland indians are chiefing their chief wahoo logo next year. saying the symbol is no longer appropriate for use on the

field. the baseball commissioner told the "new york times" that the goal of diversity and inclusion is the reason for discontinuing the logo this has been a big point of frustration here in the states for a while. the indian and the redskins dealt with this as well. >> exactly it feels like the time is right for this kind of change. slight surprise it hasn't happened before. there we go. thank you very much. still ahead, stocks posting their biggest drop of the year after hitting record highs in the previous session we'll tell you what that dip could mean for markets going forward. as we head to break, futures down 150ois. pnt

welcome back to "worldwide exchange." futures pointing lower by 152 points on the dow. the nasdaq is down 40. 37 points to be precise. the s&p is down 12 points. so we're looking at more than a

half of a percent of declines coming off yesterday's 0.7% declines let's bring in jack cafferty from jpmorgan private bank does this selloff worry you or is it a bit of profit taking >> i think it's more on the profit taking front. if we look through what's going on, valuations have been flat. so we had good earnings news we do see more pressure perhaps from fixed income assets we think about the yields rising, some investors may want to be rotating out of equities considering the year they had last year and the start to this year and rebalancing portfolios, being disciplined about it all in all profit taking what sectors are more ripe for that profit taking to continue >> i think technology will be an interesting one to monitor later this week we'll get five technology stalwarts reporting

expectations will wind up being high for those companies in particular and when they move, they tend to move 3%, 4%, 5% at a time. that's worth watching. you put that much of the market together, that big a set of moves, you'll have either a really nice week or more indigestion. >> what about the flip side with these pullbacks, any areas you're ready to deploy cash in >> i think we are spending time looking at technology stocks, seeing where they wind up balancing out. we're paying attention to the financials when we think about the improvement we've seen in consumer sentiment, wage gains starting to come through if you look at the savings data released yesterday, consumers are willing to spend money and borrow to get there. that speaks to a nice combination of value sectors in the form of financials, and the technology sector being more exposed to growth.

it's not quite as economically sensitive. >> jack, what do you expect for the dollar going forward clearly it's been weak of late people expecting that to continue yesterday when we saw equities selloff, we saw the dollar strengthen do you think that's something that is likely to happen if the dollar did continue to strengthen from here what do you expect for the dollar >> with the dollar, weakness makes a bit more sense the u.s. being more mature we have seen fed rate moves. the interest things is watching how international markets normalize given their international strength seems to be gaining more speed relative to the united states on a marginal basis we hear comments from the ecb talking about looking at economic growth in europe being almost the equivalent to the united states, inflation beginning to edge higher, yet a much different policy out of the ecb, you can come up with some reasons for some continued

dollar weakness versus major trading partners what about international equities what markets are you willing to buy? >> most of my portfolios are when i try to accept my international exposures, it winds up being through u.s. multinationals i think europe is seeing some strength unemployment is going the right way. so when i can find some american stocks with nice leverage, that winds up getting more interesting to me. >> okay. jack, great stuff. >> thank you very much >> jack caffrey of jpmorgan private bank let's look back in on markets. futures pointing lower by a half percent. dow down 150 points. nasdaq down 38 points. s&p down 1 poin1 points yesterday all the sectors were lower. it comes off the back of great returns this month of about 7%, 8%, depending which index you're

looking at so some profit taking, and it looks like that will continue this morning the dow down 156 points. "squawk box" is on the other side of this short break 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.

good morning under pressure dow futures pointing to a triple digit loss at the open another flood of earnings and the start of a two-day fed reading. tonight the state of the union, president trump preparing to give a major address to congress the big issues investors need to be watching. and new word that jamie dimon is not leaving wall street any time soon, we will talk about that as well it's january 30, 2018. "squawk box" begins right now. ♪

live from new york where business never sleeps, this is squ "squawk box. good morning, everybody. welcome to "squawk box" on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with andrew ross sorkin joe is out today feeling a little under the weather. we wish him well look at the u.s. equity futures. you are look at triple digit declines once again for the dow today. dow futures indicated down by 157 points below fair value. s&p futures off by 12 1/2. the nasdaq down by close to 40 points below fair value. this comes after a down day for the markets yesterday. the dow and the s&p 500 posting their biggest declines since september 5th. about four months ago. all of this happens with some concerns, if you do see two days of triple digit declines in a row, that's the first time that's happened in the year. the last time this happened was janu