apple's ceo tim cook speaking to cnbc after his company reported results those comments straight ahead. stocks pointing to a lower open on wall street following yesterday's slide. dow futures down more than 200 points and stepping down. the ceo of sony announcing his departure from the global giant. it's friday, february 2, 2018. "worldwide exchange" begins right now. ♪ good morning a warm welcome to "worldwide exchange" on cnbc.

i'm wilfred frost. >> i'm seema mody. >> yesterday apple reported an earnings beat but offered weak guidance amazon topping expectations as the company reported its biggest profit in history. and alphabet missing on the bottom line. we'll dig into those results straight ahead it's been moving things after market amazon up 5.7% though it closed down 3% yesterday. net-net, 2% gain apple up 2%. >> let's look at how futures are pointing to. currently a lower open dow off by 220 points. nasdaq off by 41 points. and the s&p lower by 20 points the dow and the s&p are on pace for the worst week since 2016.

nasdaq on track for its worst week since june of 2017. let's look at yields that's why stocks had been moving lower the yield on the ten-year, 2.79%, approaching 2.8%, a four-year high >> we crossed 2.8% overnight those higher yields hurting sentiment over the last week or so asian equities for you, down around 2% for the week as a whole. today is not too bad the nikkei down 0.9% but a bit of strength in shanghai korea down 1.7%. many people saying that if there is going to be spillover effects, korea would be the most likely nation to experience it, their participation on the way up was the biggest european trade for you we've seen some declines this

week the dax and the ftse down over 2% for the week. the cac down just under 2%, that's before today's declines germany down 1.5% today. deutsche bank a big factor for that we'll come to that in a bit. also the strength of the euro this week weighing on european equities more broadly. no euro strength today but there is for the course of the week as a whole. >> let's look at oil, which has been on the rise for its third straight day wti crude higher by 0.11%. $65.87 a survey showed strong compliance with output cuts by opec and leading members like russia that's part of the story today let's look at gold gold is higher >> the broader dollar index, down 0.6% coming in to today for the week today you're seeing dollar

strength against the yen, up 0.4% up the same amount against the pound and the euro is down 0.2% against the dollar overall still a week of dollar weakness, particularly against the euro and the pound bitcoin, as we mentioned, a tough month and we're down at the low to mid 8,000 for bitcoin. apple shares are moving higher after the company reported an earnings beat. the stock bounced after the tech giant offered weaker than expected guidance for the quarter. apple said iphone units fell from a year ago. josh lipton asked tim cook if the new iphone x with the steep price tag is a mainstream product. cook said you don't become the top selling smartphone in the world by being a niche product

we would like it to be for everyone let's bring in cyrus what are your thoughts on that comment? is there a peak in demand because it's such a high-end product? >> yeah. i think all these comments are missing the point. iphone revenues are up 30% if we had a full quarter, another week to compare with other quarters, they would be up 21%. the mix between iphone xs and cheaper phones is less relevant. the iphone category continues to be strong. >> a lot of questions on the call about what they'll do with this extraordinarily big cash pile, give than they're moving more cash back to the states do you expect them to make a big acquisition or buybacks? and the fact they're thinking about using that cash now, is that a benefit for the stock or a concern? >> they stated they're targeting

zero net cash balance, i hope they don't give it all away in dividends and share buybacks they need to address the threats to invest via acquisition or organically. the iphone is a huge risk from augmented reality. iphone is weak in some components of augmented reality like voice recognition or cloud infrastructure they need to get stronger and invest there in internet tv as well, they're relatively weak. they put $1 billion to the content team for tv. and in the automated home, the next big market after mobile, the home part has not launched when amazon is cleaning up the market with the echo there's a number of areas they need to invest in. >> speaking of amazon, seems like they reach for the stars but they have the cloud. that's a story we're seeing also

at google and microsoft. who wins the cloud race? >> yeah. we said for some time that the cloud is unbelievably important. investors keep underestimating it it's the operating system for the next generation of technologies over the next 20 years. if you win the cloud infrastructure race, you win in many of these technologies cloud revenues are up this year for amazon possibly 40%. i think google could be falling behind i think microsoft remains strong so i think all three have a good chance at dominating this area, which is so critical to the next generation of tech high calcycls >> talk about alphabet's results. we saw such strength from amazon, alphabet numbers clearly disappointed. >> yeah. alphabet numbers were disappointing. the most disappointing bit of the numbers was the fact that

acquisition costs were higher. google has to pay companies like apple in order to put search on their phones and get advertising revenues from it so you could say google is losing its reach, especially as advertising moves to mobile. however alphabet is so strong on so many other themes, on a long-term basis we're less worried. >> a broader question for the kind of industry, not so much apple but plays into google, certainly into facebooked a amaza facebook and amazon what are your fears for overlooking regulation >> i think they are overlooking it, and antitrust and data privacy and regulation as publishers, google and facebook publish a lot of stuff, but they're not regulated as you

guys are at cnbc and comcast i think regulation is a huge threat and european authorities are taking this threat much further than u.s. authorities. on our risk screen it shows high for facebook and google. >> one final question, do you think apple could or should buy netfl netflix, or is that too big a company now? did they miss their chance >> you know, apple needs to decide what it wants to do in terms of the internet tv strategy does it want to lead on content? it makes money from selling iphones. perhaps it wants to give away content for free in order to encourage people to stay in the apple ecosystem. until we have a strategy for the internet tv, we don't know whether it's worth buying netflix. i would say the price of netflix is high at the moment. >> great stuff lovely to see you.

>> stocks to watch, amgen's fourth quarter profit missing forecasts on higher costs and decline of sales of its blockbuster arthritis drug but the 2018 outlook is above analyst estimates. it's down 2% visa reporting better than expected first quarter results, higher spending during the holidays boosted transactions, but they expect slower revenue growth this quarter. >> mat tell potel posting a fouh quarter loss, hurt by a weak demand of preschool brands and the bankruptcy of toys "r" us. mattel down 6.7% sony says ceo kazuo hirai will step down in spril after s april after six years in the role he will become chairman and cfo. kenichiro yoshida will replace him as ceo the news comes as sony reported

better than expected third quarter results helped by the play station and image sensor business astrazeneca's fourth quarter profit was a miss. and deutsche bank's fourth quarter was loss the company posting a 1$1.8 billion charge related to the new u.s. tax law deutsche bank has now reported an annual loss for three straight years when looking at the european financials this has been one of the underperformers. >> they wouldn't have made a third year in a row of a loss if not for the write journal of doa law. shares are down 6% today for one month, down about 18%

for mid-december you could say they lost about 18% as it relates to this quarter's earnings if you think about the fall from grace as well from deutsche bank, which was one of the top three global players in investment banking with a retail presence as well with citi and jpmorgan, they made 5.8 billion in revenue citi made 17, jpmorgan 24 billion. it's been such a drawn-out failure for them over the last two, three years now you question whether they can bounce back and if the damage is done >> we have seen leadership changes, but you wonder with this type of under-performance if more is to come >> john cryan has been there for two years. we have not seen changes recently that's a question for him, given it's a third consecutive annual loss for the bank. u.s. labor market is in focus today. the january jobs report is out at 8:30 a.m. eastern non-farm payrolls forecast to

rise by 177,000, versus 148,000 in december. unemployment expected to tick down to 4% we'll also get january consumer sentiment and factory orders at 10:00 a.m. john williams and rob kaplan are speaking today as for earnings, chevron, exxon, merck, clorox, estee lauder and sprint report before the bell. let's talk more about big energy names reporting today jackie deangelis joins us on set. royal dutch shell were able to triple their profit because of the rise in oil prices is that something we should expect from some of those u.s. names today? >> it's one of the issues. three things you need to watch for that the street will be looking for from exxon and chevron today. they'll look to see if there's a benefit from higher oil prices if they were higher for a quarter, that helps. but it's not a long-term boost for these companies.

the second thing they're looking for is guidance or commentary on how tax reform will impact these companies as they go forward conoco phillips yesterday had a deferred cash profit and said they would take about a 900 billion deferred revenue charge because of the deferred tax plan there. the thirdthing is regulation president trump is saying he's going to make it easier for companies to explore and do production, but they have to be careful that they don't overproduce. the eia monthly numbers said we're at 10 million barrels a day. we have not seen that since 1970 we could be the tipping point that pushes prices back down if drillers are not careful they'll look at the fourth quarter, wanting to see numbers beat expectations or be in line. but they want to know what's happening going forward. who is the winner when it comes to the rising shale industry

>> as prices have gone up, with opec, u.s. producers have been doing well they can't overpump, it's attractive to do so, but they have to toe the line >> great stuff thank you very much for that still ahead, a solar flair, how china is responding to new tariffs on solar imports. and we're hours away from the january jobs report. was you can expect when the number hits and we're all over this early market slide. the dow off by 220 points. stick around, "worldwide exchange" will be right back for your heart...

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still yes! xfinity delivers gig speed to more homes than anyone. now you can get it, too. welcome to the party. welcome back to "worldwide exchange." i'm wilfred frost. let's get you up to speed on the market action. big selloff, down 263 points on the dow. down 23 points on the s&p. the nasdaq off 44 points this comes off a week of declines week to date down about 1.6%, 1.7% for those three indices looks like we'll proliferate those losses today one big factor has been rising yields let's look at the treasuries market we did see the 30-year cross above 3% it remains above that level. the ten-year very close to 2.80 this morning it did touch it overnight. at 2.798%. that spike in yields each day

has been correlated with selloffs in the equity market. it looks like that's a factor again this morning >> we have an analyst alert on apple. key bank just now downgrading the stock to sector weight from overweight the analyst saying while apple's massive cash return should support the stock, soft iphone sell-throughs suggest a saturated market and the lack of gross margin upside reduces their overall potential profit growth forecast. you're looking at shares of apple still higher by 2% premarket. there are only four stocks in the dow that are lower year-to-date apple is the second worst performing stock on the dow down by 6%. goi >> alphabet getting downgraded to hold from stifel. overnight it hasn't topped anything in share price. it's fallen some 4% after

earnings disappointed last night. the fallout continues after the trump administration imposed 30% tariffs on solar panel imports, but in china where many of the world's solar panels are made, manufacturers don't seem to care. eunice yoon is live at a solar plant in beijing with this story. over to you. >> thank you very much well, the trump administration may have thrown down the gauntlet, but chinese companies say they're ready for the fight. i'm currently at a chinese company that designs and installs solar panels for projects around the world. this company like so many others says china will not be as badly affected as one might think. they said the u.s. solar panel manufacturing industry is just too small to meet all of the u.s. demand. they said look at the chinese market, in 2001 with 1% of

production to now making two-thirds of the world's solar panels they're argument is that the u.s. project managers are just at the end of the day going to have to source solar panels from overseas that often is going to mean from china. the second point i've been hearing from executives is that the 30% tariff is actually lower than what they were expecting. a lot of people had said the trump administration had been telegraphing that it would impose tariffs, so they had been budgeting in a 40% tariff into their calculations the third point that i'm hearing here is that the chinese demand is so robust because the demand here, according to one executive that i talked to, is even as high as four times the amount in the united states, the companies here always have someplace to sell their product one manager that we spoke to at this company said if there's going to be any impact at all, it's going to be short-term. this is what she had to say.

>> it's for the short-term we'll be hurt, chinese factory and the chinese person, but i am confident that that's short-term and the chinese people will overcome we will win. >> and despite trump's tariffs, the companies here say they're optimistic about the u.s. market generally, and that's because they believe the tariffs are only going to last three to four years, whereas american demand for solar power is going to grow over the decades >> eunice, thank you very much for that still ahead, it's truly groundhogitol hill. and getting ready for the big game, how minneapolis is preparing for super bowl lii we're also keeping an eye on the early market slide

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welcome back to "worldwide exchange." if you're just getting up, let's look at the markets. the dow is down 240 points the s&p down 19. the nasdaq down 36 so far week to date, before the moves, down 1.6% to 1.7% for each of those indices. yes, it's been a negative week

it comes off the back of blowout returns for january. s&p up about 5.5%. turning to politics, it is groundhog day because there's another government shutdown looming. tracie potts is live in washington with more here we go again >> here we go again. at least this time there's a deadline looming but the senate majority leader is insisting the government will not close. he said that threat is over. we'll see what happens next week thursday is that new deadline. what we expect to happen at this point is not a permanent budget, but a fifth continuing resolution in other words, a short-term budget that could take us well into march, though aides tell us that date is flexible. at this point conservatives could object there's a lot of frustration here on capitol hill from both sides about the continuing resolutions. they keep kicking the can down the road conservatives want more money

for defense and may object to another short-term budget without that the hang up here seems to be the spending limits, whether they will match domestic spending with the increase in the military and of course immigration. daca, those dreamers who could lose their protective status in march. democrats have been holding out for that again, the budget deadline is thursday lawmakers, at least republican frn le leaders are promise nothing shutdown as of now no solution to getting a budget in place, but maybe another few weeks down the road they'll face this for a sixth time >> clearly february 8th is the budget deadline. what's the date for the debt limit? that clearly for us here would have a much bigger implication for markets. >> the debt limit, the congressional budget office has said look at early march for the spending authority to run out,

or the borrowing authority for the united states to run out they have to raise that debt limit over $20 million or the u.s. could go into default the big tax cut that republicans and president trump just won, that earlied up that deadline. so the tax cuts will force the u.s. to borrow more to keep books balanced that's why the debt limit deadline is earlier than first predicted. >> tracie potts, thank you very much preparations are under way in minneapolis as that city gets ready to host super bowl lii let's get to wendy wolfolk with the latest on those preparations and the excitement that is building wendy? >> good morning from the super bowl experience. when you walk into this experience, you get a taste of all things football. i was shocked at how big this football is, just to put my two

hands around it. they sell these here if you want to get one and then you realize this is so much more than just a game it's a full-on show that they have been preparing for for a good two years here in minneapolis. by the numbers, super bowl lii is the biggest single game broadcast in television. more than 100 million viewers are expected to watch the extravaganza on sunday hundreds of men and women on the nbc sports team have been tirelessly working to make all of this happen they are manning 14 tv trucks, more than 100 cameras and all tied together with 50 miles of cable. they've been rehearsing behind the scenes like half time headliner justin timberlake. he has as much buzz going as the patriots and the eagles do he wouldn't give anything away to the media when he spoke to us yesterday other than to say that he is planning a lot of things

that have not been done before so, as far as tickets go, let's talk about this. according to ticket resaler stub hub, the most expensive ticket they sold was $24,000. that's for a suite if you still want to consider coming to super bowl lii, there are still tickets available from resalers, but expect to spend at least $3,000 of course that's a nosebleed see the. i'm wendy woolfolk, back to you. >> very expensive tickets, no doubt people will be paying it or tuning in online or tv. catch super bowl lii live on sunday, all the coverage will be on nbc all the coverage throughout the day on cnbc with previews. lots of the team out there, which we'll be joining

throughout the day. for those going, i'm checking the weather in minneapolis, negative 8 degrees fahrenheit cold let's get a check on global markets. we are looking at stocks heading lower ahead of the monthly jobs report the s&p 500 lower by 22. dow jones off by 270 points. and nasdaq lower by 45 investors reacting to some big tech earnings. speaking of a selloff, look at bitcoin. headed for its worst weekly drop since 2013 it's now down more than 30% here in 2018. it's concerns around security and regulation we have an important event on tuesday, the fcc will testify in front of the senate on the topic of virtual currencies. we'll get details on that as we get them. still ahead, the top stories a round up of the global market action. and we're counting down to the january jobs report.

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dow futures down triple digits >> and countdown to jobs the january payrolls number is out in a few hours from now. and a tech triple play three tech titans reporting results last night a full round up of the numbers. it's friday, february 2, 2018.

you're watching "worldwide exchange" on cnbc. good morning welcome to "worldwide exchange." i'm wilfred frost. >> i'm seema mody in for sara eisen. happy friday to you. >> and to you, but it's not a happy friday for the dow futures. coming off a week where we're already down 1.6% for the main three indices coming into the session. we are expected to open down by 263 points on the dow. s&p down 21. nasdaq down 44 we had slight gains for the dow yesterday. slight declines for the s&p and flaz d nasdaq lots of yo-yoing overnight some international markets have seen off and yields have risen let's look at yields, the ten-year did cross 2.80%

overnight, it's 2.798 right now. the days of rising yields have correlated over the last ten days with days of selling of equities that's what we're seeing this morning. >> let's check on asian stocks mostly negative overnight. stocks closing lower by 1% part of that is the weaker yen against the dollar and interesting news about the central bank conducting a special bond purchase operation to curb rising yields. the kospi lower by 1.7%. due in part to sam thing, which reacted negatively to apple's strong results look at early trade in europe. it's a negative session across the board. the dax lower by 1%. it was the notable underperformer yesterday as well due to disappointing results from daimler >> also today being weighed down by deutsche bank, which is down some 6% after reporting its

third consecutive full-year loss broader markets, oil prices which did gain yesterday, they are -- sorry, bounced back yesterday, 1.5%, but still down for the week as a whole coming in to today. down a half percent for the week flat today 65.9 >> dollar board for you. the dollar index down 0.6% for the week as a whole. lost more against the euro and the pound than against the yen today we're seeing a bit of a bounce dak fback for the dollar. let's look at gold prices, down a little for the week. today flat, 1348 and bitcoin has had a tough start to the year, which continues this morning down 10% or so around the 8,000 level. the u.s. labor market is in focus on the wall street agenda the january robs report out at 8:30 a.m. eastern.

non-farm payrolls forecast to rise by 177,000, versus 148,000 in december. unemployment expected to tick down to 4% average hourly wages are seen rising by 0.3% let's get more on the jobs report from danielle dimartino-booth joins us now >> good morning. this is one of the most difficult jobs reports to forecast there are reasons we see upside and down side potential in the data if you think of how frigid the weather has been, that would dictate downside the rebuilding effort across the nation continues after the year of natural disasters if i'm joe q, we saw upside in construction in december, i'm not going to let workers go.

i will keep hold of them in january and february i don't want to have to resource them in march. that could portend upside. we will be keeping a close eye on those wage gains. >> danielle, clearly we've seen jobs numbers continue to grow, whether it's 100,000 or 200,000, but we also heard corporates say it's harder then ever to find the exact type of worker they need i guess we got an indication of that this week when productivity data disappointed. is that something we should be focusing in on more as opposed to the simple point that jobs and people are getting hired >> certainly the flip side of the productivity number being as weak as it was for the full-year is that hiring costs have increased. we saw the employment cost index upside there so that relates to a profit

squeeze. so, yes, absolutely. sourcing good skilled labor is becoming more and more difficult. the flip side is we're seeing increasing activity on the m&a front, and that means you could see some redundancies going forward. another offsetting factor. what about the resurgence in oil and commodity prices some economists saying this could help the job story, especially in texas and other places that rely on oil prices >> we saw tremendous upside in the dallas manufacturing survey. highest number in years. the most recent data as you have been reporting coming out of the oil patch shows we've hit higher production than we're expected for this time of year. i would expect a continuation of that, given the incredible resilience we've seen in crude oil prices, despite the increase in productions, goldman sachs eventually called for an $80 price target on wti. that certainly is how prices are behaving despite the cross

currents we're seeing coming out of the bond market b the last thing i saw last night was the 2.8 on the treasury. i said this might not be another quiet non-farm payroll friday until we see the data out. >> when we think more broadly about global growth, accelerated last year and surprised to the upside what's your hunch about what will happen this year? clearly u.s. data has been good. chinese pmis remain above 50, eurozone pmis at 59. they're high levels but they slipped back a bit my question is can we improve further from where we already are or even though growth is strong, is that already priced in to what people are expecting? >> i think the global reflation trade is very much priced in the strong euro and yen are problematic for exporting nations like germany

we have seen slippage out of china. i would keep a close eye on that going forward, china has been such a huge driver of global growth again, a lot of the antidotal evidence we see coming out of china shows that will slow down. we have to remember what president xi jinping did in front of the 19th party congress in october, there was demand pulled forward if we're going to see pay back in 2018 that will ripple across the global economy >> one final question. big story of the week, janet yellen finishing her term as fed chair. in terms of your main expectation of the difference between the two in terms of policy, what do you expect >> jay powell has stated publicly that it is not the fed's job to put -- for there to be a put, for there to be a downside protection for investors in the stock market. i think people are starting to ponder some of his rougher, tougher rhetoric on the

financial markets looking ahead. >> okay. thank you very much. >> thank you >> the jobs number comes out later at 8:30 a.m. >> we had a trifecta of tech earnings after the close quickly recapping some of those results. apple reporting an earnings bate but offered weak guidance for the quarter. amazon topping expectations as the company recorded its biggest profit in history last quarter and alphabet missing on the bottom line but revenues continue to hold strong. the big out-performer premarket, amazon higher by 5%. >> the last hour of yesterday's actual session, it lost significant ground people sold it off ahead of the results. down 3% in session yesterday net-net over the last day or two, up 2% certainly outperforming the likes of alphabet. >> we saw that f.a.n.g. story play out there 2017, and perhaps this is a 2018 story as well other stocks to watch.

gopro reported a fourth quarter loss as revenue fell 38% the company blaming the disappointing results on pricing issues the ceo says there is still demand for the cameras but only at the right price cbs and viacom are exploring a possible merger. the companies say there's no guarantee a deal will be reached but this is the first step in potentially reuniting the company after the split more than a decade ago. the "wall street journal" reports that at&t engaged bank of america to explore a sale of data centers shedding the business could give at&t the extra cash for acquiring time warner if that deal goes through. at&t off a little bit in the premarket. time warner's results, unbelievable strength of hbo hbo has had another fantastic set of numbers >> burning question that at&t/time warner deal?

that trial takes place on march 19th still ahead, top trending topics, justin timberlake making a bold statement on the nfl days before his big super bowl half time performance. and looking closely at this market selloff dow futures down more than 250 points

welcome back to "worldwide exchange." we have a significant selloff in the premarket on our hands down 253 points on the dow s&p down 20. the nasdaq down 36 points. it comes after a week of declines as well week to date before the moves, down 1.6%, 1.7%. treasuries have been a factor. higher yields have been correlated with equities selling off. we hit 2.80 overnight on the ten-year just below that level at the moment we crossed 3% on the 30-year yesterday. this has been driven largely by rising yields elsewhere in the world. the german ten-year bund is up 0.74%. having been at 0.3% in december. moves there more pronounced. dragging yields higher in the u.s. and dragging equities lower. >> it's a global story with the german ten-year and two-year back in positive territory. justin timberlake is making a bold statement about the nfl

the pop superstar says he will not allow his 2-year-old son to play football. when asked if he would support his son playing in the nfl, timberlake responded uh, he will never play football, no, no. he said his main objective is to make sure his son is a great person, adding if he wants to get into the arts or sports, yeah, i would fully support that >> i had not seen a clip of this i read the transcript. not only did he say he will never play football, when pushed forward, he said my main aim is for him to be a great person given he's a centerpiece for football, maybe he should not have lied, but just said, yeah, maybe le becohe will become a n. we're approaching the top of the hour, joe joins us from new

york >> you can understand, i guess a lot ofparents, you think of th high school star, but also knees, concussions >> everyone knows about that now. >> i understand that i'm worried about some type of wardrobe malfunction again hopefully -- i don't know if you know what i'm talking about. >> i do. it wasn't him personally >> he just ripped open -- >> yeah. >> hey, i assume -- you were unavailable to go cover the super bowl how much do you know -- you don't know much about football, but you know something, right? >> i know more about nfl than two years ago. you weren't available, because we sent the very last person that i think -- we sent andrew you know more -- >> as i said before, i hope kelly is not watching. >> you know much more. >> i've been to an eagles game and a patriots game. >> you've seen a game.

enough said. enough said. you have been -- i was watching jeopardy last night. one of the categories was football three -- one of them looks like he came from big bang, sort of a genius all three people, 0 for 5 on the category of football alex trebek by the end of it wa like should we go to commercial? the last one was purple people eaters they knew none of these things zero it's going to be great going to be great. down 250 unfortunately, wilf >> i know. i'm not laughing at that >> 2.44. >> it's been a tough week. >> how fast did amazon go from 1,000 to 1500 after that genius said to short it at 1,000? any way --

>> bezos made 6$6.5 million yesterday. >> really? not bad. >> he didn't, because the stock sold off 3% in the actual session. >> i'm shorting it again at 1500 any way, we'll look at this job thing, too the atlanta fed, what are they smoking? wouldn't it be great 5.4. >> that would be nice indeed we'll leave it there we'll see you on the other side in about eight minutes time. also come back here on "worldwide exchange" for a quick discussion about that tus fure selloff.

welcome back to "worldwide exchange." just a little more than 2 1/2 hours from the jobs report john silvia from wells fargo securities joins us. john, the market seming o ingse this week, particularly this morning. does the data this week or what

you expect at 8:30 a.m. play into that or does the data remain strong? >> i think the data is playing into the market selloff, in the sense that what you're seeing, with the prices index that came out for the ism yesterday, the higher wage number that you will see at about 2.6% year over year, that's telling everybody that the fed is at least going to move three times this year. a lot of people had one or two forecast for the federal funds rate, they have moved to three higher short interest rates meaning more difficulty for the equity market. if we see a sign of wage growth, what does that tell you? >> in the last three, four years we had a situation with the fed forecasting inflation and never got it i think you're seeing now more and more confidence that you are getting those numbers. the fed benchmark will probably hit 2% by the second quarter of

this year and people will say we're looking at the fed being able to continue its dot plot forecast for 2018 and 2019 >> i would say the market la been reacting more to the long end over the last ten days than anything else what is your expectation of where we go from there? >> the challenge here is you have the fed shrinking its balance sheet at the same time that the u.s. treasury issuance is being projected up. that long-term interest rate has to move up and in response to that that's another pressure on what is going on with respect to the markets. >> john, thank you very much for joining us >> sure. >> john silvia of wells fargo. the jobs number comes out at 8:30 a.m. eastern time let's check in on markets. looking in at that triple digit decline on the dow down 264 points. >> ten-year yield, just below 2.8% but the 30-year topping 3%

clearly a story that investors are watching >> it's played into markets all week that's it for "worldwide gechan." "squawk box" is coming up next

good morning futures are under pressure dow futures pointing to a more than 200-point drop at the open. we'll have a round up of the global markets straight ahead. remember the thing of 2.7 on the ten-year, i thought 2.8, who knows. the tale of tech apple and amazon shares popping this morning alphabet is dropping ed lee tells me that's actually google i don't know we'll tell you why and bitcoin bumped pore than 0

more than 1$100 billion wiped of the cryptocurrency market in 24 hours. crypto market. i wouldn't say anything bad about bitcoin. it's friday, february 2, 2018. is that groundhog day? >> it is >> groundhog day ♪ live from new york where business never sleeps, this is "squawk box. this song, you can't not air it welcome to "squawk box" on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen andrew ross sorkin is in minneapolis this morning that's the site of super bowl lii. hey, good morning. >> hey there >> he's up >> you made it >> do you guys know how cold it is here? >> how cold? >> any guess >> you had to chisel your dog off of the fire hydrant.