. a wild ride on wall street futures pointing to a major drop at the open after the dow posted its biggest one-day gain in more than two years steve wynn is out following allegations of sexual misconduct. and disney delivers on the bottom line. the media stock moving higher following an earnings beat we'll dive inside the numbers. it's wednesday, february 7, 2018, "worldwide exchange" begins right now good morning a warm welcome to "worldwide

exchange" on cnbc. i'm wilfred frost. a quick check on futures pointing lower once again. we were down in the high 200 points, just above that now in terms of declines, down 302, crossing that 300 mark the s&p down 25 points nasdaq down 68 crazy day yesterday. we crossed the flat line many times throughout the session well have more analysis on that in a moment. first breaking news, steve wynn is out following allegations of sexual misconduct. contessa brewer is live in carson city and has been covering this story for us what is the latest >> this is really sending a tremor through the gaming industry in nevada a pivotal inflew he weew influel leader is resigning. he said in the last couple of weeks i have found myself in an

avalanche of negative publicity, i have reached the conclusion i cannot continue to be effective in my current role the fact he is resigning from his role as chairman of the board of a company he founded shocked those who are close to him. i spoke to a source who said they never thought that steve wynn would willingly step aside. in this case, not knowing what was going on behind the scenes with the board, just knowing that, in fact, the board is under some pressure now. the stock is under pressure. it dropped 20% since the "wall street journal" came out with all of these dozens of allegations against steve wynn dating back over decades at the time wynn put out a statement and called it preposterous this morning we have a statement by the wynn resorts board of directors saying the board of directors announced today it accepted the resignation of steve wynn as ceo and chairman

of the board of directors. they describe a collective heavy heart as they accepted it. the board is facing challenges and is under investigation in carson city. there will be a gaming control board investigation this morning. they launched an investigation there will be a gaming commission meeting in massachusetts later today. already we heard from a lead investigator that they are zeroing in on that 7$7.5 million settlement the investigator says that wynn resorts agreed it knew about it but did not disclose to the investigators in massachusetts ahead of being awarded that gaming license so there are big questions about why that wasn't revealed, and what that says about this company and its suitability to have a gaming license in massachusetts. trading in hong kong was suspended when this news came out. we're down 2% roughly in premarket trading in the united states >> massachusetts is one thing, but clearly for the earnings

it's all about the licenses in macau and nevada any precedent where something is one individual specific, even if it's the namesake of the company, for the whole company to lose its license or not clearly we're down 20% now that he's gone, does it draw a line under this process and allow the stock price to recover? >> i cannot overstate to you how pivotal steve wynn is in his company. this company is seen addres ste wynn a source says there was no active board the board was steve wynn when they go to macau and apply for a license, it's really given to steve wynn at the center of this company we heard from massachusetts regulators that you can't separate the man from the company. this was ail doll done together macau is likely to look at these

allegations, whether it brings down the gaming in macau, which china considered important after the crackdown on corruption. there's a brand-new chairwoman on this gaming control board the pressure is on this woman who has been in the job for two weeks now to see how they proceeds forward with wynn resorts and this investigation from all inside watchers it's clear that the investigations, whether it's wynn resorts, the board itself or the gaming control board, those investigations have to be done thoroughly and in a clear manner >> thank you very much for that. wynn stock down about 20% now since the news first broke back to the broader markets. futures down about 300 points on the dow. down 292 points now. s&p down 24. nasdaq down 68 points. crazy day yesterday. we ended up about 2% higher for all three indices, having opened 2% lower intraday volatility remained

incredibly high. we were up and down like a yo-yo yesterday. even though we're expected to open lower today, it could all change during the course of the day if yesterday is anything to go by. let's look at the ten-year treasury note. we did see yields recover a bit. they had pulled back from their recent highs over the last few trading sessions we got close to 2.8% yesterday, but again just pulling back in terms of yield, 2.762 the trend is still very much intact let's look at markets around the world. asia is encouraging. we have some red on the screens. it's not as pronounced as yesterday. hong kong down about a percent japan is slightly higher european trade is green. about 2.5% of declines yesterday, but today we're higher by a half percent or so for the main indices checking in on commodities, oil

prices down 1% yesterday broadly flat today 63.3 gold prices for you, somewhat surprisingly have not really done too much in response to this volatility, flat again today. 1331 currencies, dollar has had three days in a row of gains, but not a big part of this recent market selloff. the gains have been small. it has turned around in direction from recent weakness today we have dollar weakness against the yen, but dollar strength against the euro and the pound. if you own bitcoin, you have lost more than if you owned equities despite that pullback bouncing back a bit today, but still below $8,000 let's get more on the early market action. joining me is paul hickey of b eshgspo espoke investment group.

today was more encouraging than the prior two days, but the intraday moves were more worrying >> it was a whiild day in the market yesterday going forward you expect that volatility in markets to continue when you see these shocks in the market, they usually don't just end as quickly as they begin there's ripple effects so i think the low volatility period we saw in january and even in november and december of last year, you can kiss that good-bye we'll see more normal if not higher than normal levels of volatility, at least in the short-term and going forward >> paul, what do you think was the main spark for the selloff originally is it now behind us, this cause? >> i think there were a lot of small factors that contributed to the weakness. you had pension fund rebalancing. higher rates you had inflation concerns

the blow up of the short volatility trade behind all that, i think a bigger thing to focus on is sentiment in the market. we just saw very extreme levels of sentiment heading into earnings season we noted that the analysts sentiment, the pace of positive revisions that was like nothing we had seen in at least ten years, which is usually a contrarian signal. so that set up a high bar for expectations then consumer sentiment in the monthly u.s. consumer confidence poll, they ask a question on expectations towards stock prices the percentage of consumers expecting higher stock prices was at the highest level ever in january. that survey goes back to early 1987 at no point in the last 30 years were consumers more optimistic towards the stock market as we -- as anyone who has been in and around the financial markets for any period of time

knows that when everyone starts thinking one direction, the market has a good tendency to come in and make you feel humble so this is part of the process of resetting sentiment in the market and getting it back to a more realistic state >> given that the pullback was so sharp, so pronounced does that give you encourage mment ta it has been fully flushed out or it could go quite a fashion lower? >> i think when you see these sharp declines like we've seen over the last two weeks, one of the main characteristics is continued volatility and more often than not you see some sort of retest of those levels. i wouldn't expect it to be straight off to the races higher here that's the bad news. the good news is we saw -- this

was the fourth sharpest pullback from an all-time high in a two-week period we have ever seen in the s&p 500. when you look back at prior pers where you have seen that swift, sharp pullback in the market, what you have tended to see is better than average returns over the next one, three, and six months so you do see some increase in volatility like we saw after the flash crash and the debt downgrade, and the yuan devaluation in 2015, you tend to see a retest of shallows, but going forwaini it generally tends to pay off holding on for the ride. >> do you have a strong stomach? have you been buying the last couple of days >> we did some nibbling yesterday. again, what we've been doing is puttinging in orders below the market pricing because you can get up and get up from your

desk, come back, and the market swung a percent in either direction. letting prices come to you rather than chasing them is a strategy investors should be focusing on in this kind of environment. >> also the way to make sure you have a strong stomach. don't watch at all we don't encourage that. investors still recovering from whiplash following yesterday's wild market swings the dow opened down big before staging a late morning comeback. it moved between gains and losses for much of the day before surging in the final hour of trade the dow finished up more than 2% on the day itself. if history is indication, these market swings could be long overdue. er eric has more on this particular angle. >> i like what you were saying, everybody has to keep watching it's not good for the stomach but good for the ratings >> good for the ratings, and it is fascinating and exciting.

>> the intraday moves are more interesting than the final result if i went back and looked at what was the daily move, you missed 9 who ed the whole story late last year i had done a story talking about how we were overdue for a 3%, 4% 5% move because the chart is interesting. if nichb waanyone wants to go o, search my name >> also a good ploy for ratings. >> but there were 2,000 trading days, and it happens it happens with regularity it goes up, crashes. it goes up, crashes. that up is how many days before a big move i said it's only a matter of time before this happens it did the markets have this natural rhythm to them it's all people. it's personal psychology trading. once it happens like we saw this past week, it stays for a while. you mentioned we were down a 3%,

5% pullback. did you expect it to come in a single day or was the market generally due a correction >> that's what i was saying. we were due for a single day 3%, 4%, 5% move, that comes with regularity every fi year few years it comes >> what tends to happen after that >> then you have more volatility along the way. once the first one comes, you get a lot of aftershocks we saw that vix chart earlier, it was at 8 a couple days ago, now it's 20, 30, 40, 50, it's not coming back to eighting f f weeks. >> thank you very much this could have been a chat about geologists >> a lot of geologists have transitioned to stock trading. >> really? >> yeah, they use these guys to figure out patterns. >> i wonder if they made some

money. >> they should have. turning to the wall street agenda december consumer credit numbers are out at 3:00 p.m. eastern rob kaplan is speaking in germany, and we'll hill from bill dudley, charles evans, and john williams today. hasbro and michael kors before the open, and after, 21st century fox and tesla. the disney ceo saying wasn't aware of any other potential offers for the fox deal that he's agreed to still ahead on "worldwide exchange," a big day at the house of mouse after disney's earnings beat the street they reported yesterday. a rundown of those results and comments from the ceo, bob iger. let's check in on furetus, down 270.

welcome back to "worldwide exchange." let's check back in on futures down close to 300 points, improving to 272 s&p down 22. the nasdaq down 9. the levels were at a relatively steady amount, so not like volatility we saw yesterday, and throughout the trading day itself, which were wild swings,

closing up 560 points. disney topping wall street's earnings expectations thanks to the success of its new avatar land bob iger spoke about the theme park performance last night on "closing bell. >> starts with success across the globe. particularly in some of our international -- or in one particular international park and resort in paris that it had a number of years where the numbers weren't that good. and they have improved substantially. but we have also had record results for our domestic operations as well >> iger says they will launch the new espn streaming service this spring. one version of the app will cost 4.99 and will offer live sports

and events not available on current channels did not rally immediately after the numbers hit last night, but analysts commenting encouraging and leading to decent performance. snap reporting a narrow fourth quarter loss as revenue surged more than 70% the social media company added nearly 9 million daily users the ceo says he is confident snap can monetize products more efficiently. it's up 23%. the user growth was the big benefit in those numbers but better cash control, better cost control as well, also benefiting to the eps and the bottom line. gilead posting a fourth quarter loss on a charge related to the new taxing law. the company says sales of its flagship hepatitis c drugs fell more than half and it sees a further slowdown this year chipotle's fourth quarter results beating analyst

estimates. the chain is working to regain customers trust following several safety food issues over the last several years down 7% in the premarket lululemon announced on monday that the ceo resigned saying he fell short of the company's standards of conduct sources say one issue that led to the departure was a multi-year relationship with a fee mral desimale designer of ty lululemon did not renew her contract last month. he also had a negative impact on the company's culture, which they described as toxic. a company spokesperson says any time violations of policies are brought to their attention, they take appropriate action. it fell on monday but recovered since then. still ahead, we're headed to london for the latest action in european markets. and later, spacex launching

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to improve short-term memory. prevagen. the name to remember. directv has been rated #1 in customer satisfaction over cable for 17 years running. but some people still like cable. just like some people like banging their head on a low ceiling. drinking spoiled milk. camping in poison ivy. getting a papercut. and having their arm trapped in a vending machine. but for everyone else, there's directv. for #1 rated customer satisfaction over cable, switch to directv and get a $200 reward card. call 1.800.directv welcome back to "worldwide exchange." let's check in on the market action it's looking red, but a lot better than it could have done given the last couple of days. down nearly 300 point, but

steady around that level we've been down around 280 to 300. yesterday we gained over 2% for the dow and the nasdaq, just under 2 % f% despite opening don more than that amount. we drew a line by the close under the big declines of the prior two days we are steady at least not moving around too much there's an encouraging picture europe up about 0.6%, 0.7%, having declined 2.5% yesterday let's talk more about global markets with steven maclo-smith. good morning to you. the pullbacks of friday and monday less pronounced for european markets than here stateside. however the gains of january were much lower. so when you look at the charts, when you consider how far they

are from highs, the european picture also concerning over the last couple of trading days. >> nmoderately concerning. the u.s. stock market opened the year in a burst of enthusiasm over the first three weeks if that rate of ascent continued for the full year, the s&p would have been up by 150%, so clearly that wasn't going to happen. so a pullback or a pause was absolutely too be expected normally when you get a correction in the states, then that affecting european markets. the internal dynamics don't look that concerning. during the pullback, defenses have not outperformed to the extent you thought, and cyclicals and financials held up well it's been a pause for breath more than the start of something more sinister. >> when you consider the ftse 100 and the dax, both with a lot

of international earnings, or exporting earnings, are you impressed by the relative resilience given the strength of the pound and the euro or when you look at the levels of the currencies, do you think in the year ahead it will be a headwind for them to move higher? >> i think it's going to be a moderate headwind. that's particularly true in the uk and the first quarter the key thing that happened over the last year is that the dollar has corrected against most major currencies, down 10%, 11% on the trade weighted basis what's happened with sterling is that sterling appreciated against the dollar but it has not appreciated against the euro so trade between the euro area, the currency transaction not too much of a headwind anything that's dollar related, a bit of a headwind. it's impressive to see the international trading companies which report in dollars in the uk report strong numbers part of that is because of lot of that is in the commodities complex. there you have rises in

underlying commodities prices in the oil side and the metals side >> thank you very much for that. still ahead, a round up of the headlines and a check of global markets later, spotting the next big move, what the charts are saying about where markets are headed from here.

another wild ride. dow futures are falling hard

today after yesterday's whipsaw session. and steve wynn out following allegations of sexual misconduct and one giant leap for elon musk how sua successful rocket launch kicked off another leg of the space race it's february 7, 2018. you're watching "worldwide exchange" on cnbc. ♪ good morning a warm welcome to "worldwide exchange" on cnbc. a quick check in on the futures as well. we are down about 285 points we have been steady at this level between 280 and 300 points for most of the last couple of hours. the s&p is down 23 the nasdaq down 69 steady not a word we could apply to yesterday's trade

we ended up 2% higher, but we opened down 2% intraday moved up and down across the flat line many times. volatility spiked significantly. we did end higher, and the fact that even though we're lower, we're steady, that extends the slight encouragement from those massive declines we saw friday and monday we'll be back to the broader markets in a moment. first breaking news, steve wynn is out following allegations of sexual misconduct. let's get to contessa brewer live in carson city with the details. >> reporter: here is the man at the center of modern gaming and the center of a swirling controversy taking a drastic measure and stepping aside it's not been two weeks since the "wall street journal" published that story of dozens of allegations of sexual misconduct against the ceo of wynn resorts with the stocks plummeting

almost 20%, and investigations launched coast to coast, steve wynn resigned. he said in the last couple of weeks i found myself the focus of an avalanche of negative publicity. as i reflect on the environment this created, one in which a rush to judgment takes precedence over everything else including the facts, i reached the conclusion i cannot continue to be effective in my current roles. the board described a collective heavy heart in accepting the resignation of its ceo steve wynn has endorsed the succession plan which puts wynn resorts president matt maddux i the position of ceo. the nevada gaming control board meets today. they launched an investigation massachusetts gaming control meets today, they launched an investigation. they will look at the role of the board in the misconduct allegations. for its part, the company put

out a statement saying wynn resorts remains as committed to ever to yupholding the highest standards and being an inclusive employer clearly the pr initiative beginbegins especially with gaming licenses at stake the culinary workers union in nevada sent a text to its workers working in casinos urging them to come forward if they have been the victim of work mrplace misconduct >> down 2.6% in the premarket. that sold off more over the last hour or so futures are down about 280, 290 points, having gained 567 points yesterday a crazy intraday we saw yesterday. we opened down 560 points on the

dow, closed up 560 points. a 1,000 point spread it was a crazy intraday session, but we did draw a line under those massive declines we saw on friday and monday closing higher we're lower, but steady. ten-year treasury note back up towards 2.8% yesterday, now back at 2.76. the high last week was 2.85% so off the highs, but the trend of rising yields intact as you can see from that chart and the way equities trends were risinging were not in tact after friday and monday's pullback let's discuss markets further. joining us now is steven englander. good morning to you.

the volatility we saw yesterday, is that something that we'll see for the rest of the year >> not to the same degree we've seen it the last couple of days. there are fundamental issues that the market is debating. that's going to stay with us we started january with a positive narrative of strong growth, accelerating growth, accelerating productivity, relatively benign fed, q4 productivity was disappointing q4 costs were disappointing. the fed sounded hawkish. the market is trying to decide which narrative is correct the january narrative is more friendly to the market than the february narrative we won't be able to tell which one wins for a couple of months if not a couple of quarters. >> clearly markets had jitters is the economy possibly going to have jitters in the coming weeks or months? if it did, given this spike in

volatility, would we see a much more ror worrying selloff >> i think it would have to go much higher, stay much longer and spread into broader markets. we've seen episodes, if you think back over the last 5, 10 years, setting aside the actual great financial crisis, if you go back over the last five years, there's been episodes of temporary volatility and if you looked at a chart of activity, any activity indicator you wouldn't notice it going back to 1994 when bond markets crashed, equities were flat, the economy trucked on i think the market is worried it might affect the economy, but the odds are the economy keeps going irrespective of what we've seen the last couple of days >> in terms of currencies which you look at closely, we have not seen that play into the volatility the last couple of days what's your take on the relative stability that we've seen there?

>> i think that the market had the wrong positions on that. what we saw on monday and coming into tuesday was panic everybody cutting every position they had as the bar of these positions went up. but the market was already long yen against the dollar and long euro against the dollar. the normal instinct to buy those currencies was mitigated by the fact they have to sell them because of positioning it's not particularly meaningful i also don't think there's a particular story that relates to currencies here. just because whatever hits the u.s. in terms of perceptions of risk and asset market dangers will hit the rest of the world as well. >> thank you very much for that. steven englander >> thank you the clock is ticking yet again on congress to pass a spending bill and avoid a government shutdown. tracie potts is live in washington with the latest for us good morning >> good morning, everyone.

with less than 48 hours to go, it's not clear if we'll avoid a shutdown again here's where we are. the pohouse passed a mesh sure th measure that includes more defense spending than the democrats work so it's likely dead on arrival as they work out those issues and trying to work out a deal on immigration. president trump says if they can't work out immigration let the government shut down i would love to see it shut down is what the president said republicans and democrats are not agreeing with that, they're trying to figure out a way to protect dreamers and also deal with family migration that's the big hangup now along with the spending caps and lawmakers have not a lot of time to figure it out it's not clear if the government will shut down, but we do know that both sides, democrats and

republicans, the leadership is saying there's progress behind the scenes, that they are coming to some agreements, it's just not clear if they can do it between now and midnight tomorrow >> tracie potts, thank you very much some stocks to watch, disney's first quarter earnings beat forecast boosted by its theme parks business revenues fell short of estimates. bob iger says disney will launch its new espn plus online service this spring. it will cost $4.99 per month there's various levels of subscription snapreporting a far row fourth quarter loss. revenue surged more than 70% the social media company added nearly 9 million daily users the ceo says he is confident snap can monetize products more efficiently. it's up 23%.

chipotle q4 beat spacex launching its falcon heavy rocket into space on tuesday. for the most part the launch was a huge success the falcon heavy was built with three reusable boosters, two of which were recovered afterwards musk talked about his big bet on space >> i think it will encourage other countries and companies to say if spacex did this, nobody paid for falcon heavy, this was internal funds, then they can do it, too. it will encourage other companies and countries to raise their sights and say we can do bigger and better, which is great. >> the unmanned rocket is carrying musk's personal tesla

roadster into outer space. reportedly playing the david bowie song "space oddity" on repeat throughout. still ahead on "worldwide exchange," investors gearing up for what could be a volatile day on wall stetre that's when we come back e marke, but through good times and bad at t. rowe price we've helped our investors stay confident for over 80 years. call us or your advisor. t. rowe price. invest with confidence.

welcome back to "worldwide

exchange." i'm wilfred frost. let's get you up to speed on the market action. we're down more than 300 points on the dow we've been steady around the 2 0 -- -- 280 to 300 mark. we opened down more than 2% yesterday, finished up more than 2% that drew a line after the bigging declines of the previous day. we have seen the dollar gain the last three sessions in a row but not by much given the volatility you can see the dollar act as a safe haven and trade up more than it has. today it's down a half percent by the yen up a quarter percent against the euro 0.4% against the pound let's talk mror about the curre currency market.

the dollar, let's talk about the point of a safe haven, is it no longer a safe haven in moments of volatility? it hasn't traded higher by a significant margin despite extraordinary levels of volatility >> you're still seeing it act as a safe haven this morning you are seeing the u.s. dollar higher against the euro, the british pound and many other currencies it's not getting the same type of enthusiasm because you have bond market selling, stronger global growth prospects, but investors are inwoundiare unwin those bets, going flat and taking profits as they wait to see if yesterday's recovery was a fake out or a true bottom. i think it's far too early to tell >> how strongly correlated is the dollar to u.s. interest rates and the longer end of the curve? strangely it's almost been correlated in the opposite

direction than we'd expect >> it's terribly correlated that was before we had this meltdown. we're seeing the correlation resume again previously the reason why yields were rising is because bonds were being sold, and in turn the u.s. dollar was being sold with yields at 2.8%, u.s. fixed income investments are becoming more attractive. you can see a reversal of those flows and correlation which stood the test of time in a long peri period. >> what about the yen, often used address a sas a safe haven how is that relative to days when we have risk aversion front and center >> whenever we have risk aversion you tend to see yen strength we have seen the japanese jen as the best performer this will be hurtful to the nikkei and japanese markets.

i think that will continue because regardless of if this is a fake out or not, the uptrend is no longer one directional in the equity markets they won't come back with the same enthusiasm. >> finally, your view on emerging markets in. >> i think they're vulnerable. they will be sensitive to global market developments, u.s. stock market movements i would be careful being long those assets >> thank you very much for that. up next, what the charts are saying about the market's next big move as we head to break, here is the national weather forecast from bill karins. >> good wednesday morning to you. this big storm, over 90 million people impacted by it today and tonight. a lot of ice in arkansas, that continues this morning in the ohio valley. on this radar map, the green and the yellow is rain, the pink is the sleet and freezing rain.

blue and white is all snow ohio valley is the battleground, and now light icing taking place near the nation's capital, baltimore and philadelphia here is the ice forecast, maybe minor power outages in pittsburgh and southern portions of ohio. here's the snow forecast, it's really interior pennsylvania and interior new england that will get 6 to 12 inches the worst of it is easily this morning for i-95 and then it improves throughout the day mddress temperatuas temperatures warm up that's your business forecast. more "worldwide exchange" when we come back these birds once affected by oil

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mom anit's not theirs.car... it's mine. mine. mine. and it always will be, forever and forever. the new rx 350l with three rows for seven passengers. experience amazing at your lexus dealer. welcome back to "worldwide exchange." let's check in on the futures. down 300 points but steady around the 280 to 300 level.

let's look at treasuries yields pulling back. yesterday we hit 2.8 the high yesterday, 2.85 we're back to 2.764. a look at some technical analysis now of the markets. i'm joined by todd gordon of tradi tradinganalysis.com. thank you very much for joining us >> my pleasure we might have an issue with the titles of the charts, but is this the right one now >> i have these so engrained in my mind. >> which chart is this >> we're looking at the ten-year treasury >> so please ignore the titles >> there we go out and done tell us what you're looking at >> everyone is talking about this back up in yields, this move up in yields, the drop in bond prices. what you'll see is the ten-year treasury over the last 35 years has broken up tren support following a double top

why are the bond markets pushing lower? are we in reflationary trade interest rates moving up for the right reason or are u.s. treasuries falling out of favor. i'm afraid that u.s. treasuries are falling out of favor and that's causing this volatility >> so this correction could continue >> i think so. i think we'll have a move down in bonds, up in yields at a faster pace than we expect that's causing volatility. >> to add to that, the last couple of days we got to 2.85 in yields, you think it's a temporary blip and yields will go much higher >> i hope the pace is not too fast the faster the pace, the more the volatility from a technical point of view, you could see 3 1.5, 4% on the ten-year >> the next chart? >> this is the s&p 500 weekly. >> this title is correct

>> yes i love this chart. when markets get crazy, volatility kicks up. people get emotional let's step back and say this is what we're talking about here. we are still very well contained in this beautiful uptrend channel. the real test will come down around the 200 week moving average. this is around 2200. uptrend support here at about 2300 that's the gateway to the downside that's when this central bank induced liquidity interest rate rally is in jeopardy >> moving averages are important, because if we drop below them, it can kick in and make people think the momentum to the upside has gone away. exactly. we're looking at a 200 week moving average it's fairly well defined once we moved above that, that's when the rally began if we can look at this zone here, as we go to the next

chart, the daily now -- so right now what we're looking at is an up trend from 2016 to now. this is the more micro up trend. all the volatility over the last few days is around here. two days ago we sold off below this support, we closed back above. we have done about a 50% retracement in the nasdaq of what we lost over the last two days now the futures are down perhaps that was a selling point. if you break through this 2500 region, that's the key to the down side we mentioned >> what's next >> that's going to cap it. >> okay. i want to come back to something else we've seen. we talked about the moving averages being important levels of support we broke below the 50-day moving averages for the u.s. markets, not the 200. what about the european markets? they all crashed below the 200-day moving averages, is that

bearish for those european markets? >> i'm not a huge believer in the moving averages. >> the trend line is more important. >> i'm a levels-based actionable trader we've seen a lot of flows out of the u.s. into international and emerging markets if we start to move back here, perhaps, you know, the reason for emerging markets that can rally, the weakness in the u.s. dollar comes off thiscommodity trade comes off, and perhaps the fed is back to where we were. we were thinking about three, four, five interest rates hikes, but it's easy to say with the markets at all-time highs. >> so 2500 >> you have to hold that zone. >> thank you very much let's look at futures as we go we can also check on that level of the s&p that's just the move, i don't

remember exactly where we are. down about 27 points on the s&p. dow about 320. relatively stable mp tcoaredo yesterday. that's it for "worldwide exchange." up next, "squawk box." you know what's awesome? gig-speed internet.

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good morning buckle up. wall street looking to be in for another wild ride. steve wynn is officially out as ceo of wynn resorts and a dow driver, disney shares rising after an earnings beat it's wednesday, february 7, 2018 "squawk box" begins right now. ♪ live from new york where business never sleeps, this is "squawk box.

good morning welcome to "squawk box" on cnbc. we're live from the nasdaq market site in times square. i'm michelle caruso-cabrera r along with andrew ross sorkin. joe and becky are off today. joining us toe day is kevin o'leary. and mike santoli is with us for the hour looking at u.s. equity futures, they're suggesting a negative open, a decline of 324 points. the s&p lower by 38 points the nasdaq lower by 81 points. there's a time that would look like a lot but considering what we've been through, a move of 1% doesn't seem that volatile here's how yesterday played out on the big board the dow opened down big time before staging a late morning comeback, then it moved tw