the dow futures pointing to another lower open following yesterday's roller coaster ride on wall street a top strategist's take straight ahead. oil falling to a one-month low as us sto.s. stockpiles gro. despite a handshake deal in the senate, congress has to pass a spending bill by midnight tonight to keep the lights on. we're live in washington, d.c. with the latest. it's thursday, february 8, 2018, "worldwide exchange" begins now. ♪

good morning a warm welcome to "worldwide exchange" on cnbc. i'm wilfred frost. >> i'm seema mody in for sara eisen. >> great to have you with us let's look in on the market picture. another roller coaster ride yesterday. two days ago we had a 1,000 point swing from low to high yesterday about a 500-point swing on the dow we were down 130 at the open the session high was 381 points. we sold off into the close and finished basically flat for the dow. the s&p was down 0.5%. nasdaq down about 1% the week to date results are down about 2.5%, 3%, not that bad with the huge declines earlier in the week. the dow did lose 4% last week as well this morning it's calmer we're down, but only by 96 points the nasdaq is down 16.

the s&p down 12 points let's look at the treasury yield curve. we did see yields pick up yesterday. we were nicely above the 2.8% level, 2.84% we're near that high of 2.85 we touched late on friday it will be a big test for the markets to see if yields continue their rise, if we get more of those types of pullbacks in equity markets that we saw late last week and early this week a look at the oil board. week to date coming into today, we're down a%. it's weighed heavily on the energy sector. down today, only a half percent. 61.50 is the price of wti. in asia, it was positive session with the nikkei up 1%. hang seng higher by 0.4% the kospi with a gain of a half percent. the nikkei is still down 6% for the week if you look at early trade in

europe, you'll see markets are not following the cues from a a asia the dax is leading the declines down over 1 %. the french equity market down 0.75%. for the week, germany, france, spain, down about 4% the dollar had a big jump yesterday, about a percent for the broader dollar index it's higher again today. 0.4% higher against the yen. a bit higher against the pound we're watching the bank of england decision this morning. not really expecting a hike, but inflation there is still elevated compared to the rest of the developed world. bitcoin this morning, prices are higher, not significantly. we had that nice rize base backv 8,000 over the past couple of days joining us on the phone is jeff

kleintop good morning the main question for me is on the yield curve. clearly we have now seen the yield curve rise back to levels of last week, seen as a spark for the selloff in equity markets. do you think markets have taken that a tried better this time? and what happens here? >> i think it's the sharpness in the move that's the issue. we saw a dramatic move in january and the early days of february in those longer term interest rates, something we had not seen in quite some time, shorter rates moved up now, y we're getting higher rates. everyone knows we're headed towards higher rates the pace of that is so important to the markets if we see a more modest move higher in rates, it's something the market is more comfortable digesting. 3% is not a shocking level for the ten-year at all. it's how quickly it gets there that had been disturbing to markets. what's most interesting this morning is how they're reacting

to that. probably what's more interesting in european stocks is not the price action, which is little changed, but the volume. a lot of volume. volume 50% above the 30-day moving average, that's a sign that the market is adjusting to the new environment and settling out avenue the sharp moves of the past week. >> yesterday we saw some buying in defensive names, industrials, financials, even boeing seeing a gain of 2% is that a sign that some investors are trying to dip their toe back in? and if so it's best to take a more defensive approach? >> i don't know about that i think we're probably still late enough in the cycle, and the yield curve is pointing at 9 fact that we're probably not looking at a global recession in the next 12 months sentiment is very important here it had been elevated

investors were chasing after stocks, buying them fairly aggressively so if this turns around, if there is interest in defensive shares or a pullback in some optimism surrounding equities, that may be good news and preserve the rally, though it could deepen this pullback what have you been suggesting to clients they should be buying in the short-term >> well, there's several things you could do you don't have to do anything. stocks are back to where they were at the end of last year and you could look to rebalance your portfolio. if you're going to buy, waiting for a pullback, you have to be selective, but if you want to be financials may be a sect their benefits from higher inflation and broader growth and international and emerging markets also benefit from a faster pace of inflation and more cyclical than u.s. equities those are areas that stand out here as opportunities if you're looking to put cash to work. >> jeff, thank you very much futures have taken a bit of a

leg lower, down 160 points we were down 00 at the top of the show the clock is once again ticking on congress. lawmakers have until midnight tonight to pass a spending bill and avert another government shutdown, this time there's a major bipartisan budget deal in the works. republican and democratic leaders in the senate say they reached a two-year budget agreement that would boost spending on military and domestic programs and ending mandatory spending caps. it still needs to pass the senate and house and that could be tricky. nancy pelosi delivering a record eight-hour speech on the house floor yesterday saying she won't back the measure without language to protect young undocumented dreamers. we'll have more on this in a live report coming up from washington >> clearly this is big progress yesterday. however, as you rightly say, there's question marks, particularly in the house and not also from the democratic side by the right wing and the

more fiscal conservative wing of the republican party this is another big factor to increase deficits. a lot of extra spending being thrown in there. still question marks but the fact it's a two-year plan on the table, i welcome that earnings news, tesla reporting fourth quarter results that topped wall expectatio expectations landon dowdy has more on that. >> here are the numbers. tesla reported an adjusted loss of $3.04 a share wall street was expecting a $3.12 loss the carmaker announcing plans to spend more capital in 2018 stoking concerns about profitabilities. elon musk addressing those concerns on the earnings call. >> i'm optimistic that we'll be gaap profitable. not certain, but it's -- i'm

cautiously optimistic that we'll actually be gaap profitable with no asterisk. >> musk talked about production. he expects the company to produce 1 million vehicles annually by 2020 and talked about the production delays with the model 3 sedan. >> if we can send a roadster to the asteroid belt, we can probably solve model 3 production it's just a matter of time >> musk is referring to his successful launch of the tesla roadster on top of the falcon heavy rocket launch. shares of tesla on the move. slightly off in early trading. >> been a busy week for elon musk spacex, earnings for tesla he deserves a drink. >> he does, indeed we all do. it's interesting in that, he did mention we did this, we can do that linking the two companies as if one, which is one of the big

question marks always over these dual ceo roles i guess he deserves a pat on the back this week here's some other stocks this morning, take two interactive expecting better than expected q3 earnings. the gamemaker missed revenue forecasts and outlook disappointed that stock bodown 5%. yelp's fourth quarter profits fell short of estimates. they protect an operating loss as they ramp up spending on restaurant reservations and marketing analytics. yum china's fourth quarter results just edged past estimates on strong growth from its kfc restaurants, but that was wraoffset by sis appoindisa

sales from pizza hut. jeff immelt has been named chairman of athena health's board. they cite his digital expertise as reasons for the appointment. swiss re is in preliminary talks with softbank with a possible minority investment softbank could buy a stake in a third of the company softbank plans to offer swiss re's insurance products to other companies it has already invested in. interesting move, this, because traditionally re-ininsurance sus about as dull and boring as you can get. not dissimilar from the recent move into healthcare we saw from jpmorgan and amazon and the like they're investing this to cross sell and use the insurance products they have across their huge headcount of businesses >> broadening focus.

i wonder if the rate story, yields, has anything to do with this interest in insurance and reinsurance business costco says january same-store sales rose analysts were expecting an increase of 4.9% to today's wall street agenda just one piece of u.s. economic data, that's weekly jobless claims are out at 8:30 a.m. eastern. in europe, we have the bank of england meeting, a trio of fed officials are speaking today philadelphia fed president patrick harker, minneapolis fed president neil kael kashkari an esther george. we heard from robert kaplan this morning speaking in frankfurt he said the central bank should continue removing accommodation by added the fed should be highly vigilant about market volatility and whether it has effect on the real economy

cvs health, t mobile, kellogg, twitter, viacom and yum brands reporting before the open bell aig, expedia, news corp. are out after the close. double dose of deal news fox talking disney and sky in its latest earnings report details coming up. and another check on futures. the dow is lower by 126 points in the premarket "worldwide exchange" will be right back

what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley

welcome back to "worldwide exchange." let's get you up to speed on the market action. here's the premarket set such. the dow is lower by 130 points s&p 500 down by 13 nasdaq lower by 21 this comes after yesterday we did see a big intraday reversal. the dow was up 230 points on the day but closed lower by 19 points wti crude down by half a percent. ice brent crude lower by a similar amount, trading at $65.20 yesterday we did see some data on production, a big jump if production oil did trade at a one month low. 21st century fox beating wall street estimates on the top

and bottom lines, results helped by the cable and satellite business amid chatter about the company's big disney deal, investors are eyeing fox's proposed takeover of sky let's bring in aarash masudi what are the see things we're looking for? >> the deadline is in may to resolve the concerns over media plurality and the murdochs potentially acquiring sky news so they have talks behind closed doors to sort that out the three options on the table are disposal, spinoff or some ring fencing of sky news to address the competition market's concerns over market plurality >> sky is a company that has been looking at possible takeovers for quite some time. more broadly in the media sector we have the big fox disney tie

up, possibilities that comcast might come back in for them. all media companies looking at trying to do deals at the moment >> we're in an interesting moment the key, according to our contacts and sources we've been talking to, the key thing that's changed in the media landscape is that rupert murdoch flipped from being a buyer and holder of assets to a seller this crystalized the moment we're in where you have powerful cable and telecoms companies, comcast, verizon, at&t, and powerful technology companies, facebook, apple, netflix, being in the middle, in that context a mid-sized media company is a precarious place to be you saw cbs and viacom reopening plans to discuss a merger. cable channels discussing consolidation. you see movie companies, movie studios looking at deals there's movement in that media space as they are squeezed

between the cable companies and technology companies >> any thoughts on how the rise in yields will impact deal activity or m&a going forward? >> one trend has been heavily levered takeovers. you think of altice in the u.s., they bought cox and -- cable vision and suddenlink. you look at transaing shuns backed by aggressive amounts of debt that becomes more complicated in an environment where yields will go up quicker and investors will demand more to fund aggressive takeovers. in the media and cable space, many of these companies develop so much cash, it's not difficult to go to market. so it should be fine for these companies to pursue the deals they're looking at >> thank you very much for joining us >> still ahead on the show, gold coming off the worst day in two months up next, a top an lersalyst's to

what's weighing on the metal >> first, the national weather outlook from bill karins >> after yesterday's storm in the northeast we're left with an icy mess temperatures have plummeted. windchills in the teens, very careful out there. the next winter storm is on its way. winter storm warnings from montana, chicago, and a winter storm watch for detroit. this will bring snow today and tonight from montana down to the central plains anywhere from 2 to 4 inches of snow once we get to chicago and detroit, we could pick up five to nine inches of snow it's a long duration event the worst of it friday morning in the northeast, the sun will be out, but it will be brisk careful of the ice southern half of the country looks great. that'sou yr business travel forecast more "worldwide exchange" when we come back for your heart...

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intraday, we were as high as 381 points on the dow, so still had that intraday volatility treasuries for you, yields rose markedly, close to that 2.85% high we got late last week 2.83%. gold prices down again today hitting a four-week low on a firmer dollar. expectations of more rate hikes this year continues to weigh on the market with us now is george millings stanley. good to see you. despite the tupull back in stoc and rising volatility, we did not see buying why do you think that is >> investors are facing margin calls, rather than sell out of stocks at depressed prices, they're turning to the safe haven asset, the thing that is

useful when other things come down we've seen this every time there's been a significant drop in stocks in the 40-odd years i've been in the business, you tend to see for the first few days, sometimes a week or so, weaker gold prices because people are selling to meet margin calls gold does its job, so people will buy it back i don't expect the current softness to last any len of time >> given that volatility has picked up in the markets, is this a great time to buy gold? >> i think so. there's never a bad time to buy gold it's very good gold is trading in a range five times of where the price was it's in the top half of that range. all the pressures have been to the upside not the down side timing is perfect. >> when you say there's never a bad time to be buying it, does that come from a position where you view gold always -- you're a long-term bull always on gold?

>> i think every portfolio would benefit from a small strategic allocation to gold and the entry point is not the thing to focus on the thing to focus on is that gold moves in different directions to stocks, moves in different directions to bonds. what about bitcoin and cryptocurrencies, the emergence of this new asset class. does that pose a headwind for gold's ability to move higher? >> i have read about this but have not seen practical examples of it. i keep looking to see if that is happening. people talk about volatility and gold gold is one of the less volatile assets, not the least volatile, but if you look at what's happened with cryptocurrencies and with bitcoin in particular, where the volatility is exponentially bigger than in gold i don't see any of the cryptocurrencies as being serious competition for gold they're speculative counters

rather than a long-term strategic asset. >> you sound like a true gold bull we'll leave the conversation there, george, thank you still ahead on "worldwide exchange," the top stories and a round up of the global market picture and mcdonald's is giving away pricey jewelry in time for valentine's day. >> i don't know if i want that >> as we head out, let's check on futures and where we are trading. dow now lower by 98 points nasdaq lower by 15 "worldwide exchange" will be right back mom and dad got a new car...

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futures pointing to another lower open following more wild swings on wall street. the clock is ticking congress has until midnight tonight to pass a spending deal and avert another government shutdown we're live in washington with the latest. and big mac bling. the mcdonald's giveaway that has everybody buzzing today. it's thursday, february 8, 2018. you're watching "worldwide exchange" on cnbc. good morning a warm welcome to "worldwide exchange" on cnbc. i'm wilfred frost. >> i'm seema mody in for sara eisen. let's get you caught up on stocks and where they're trading in premarket the dow coming off the lows, but

still lower by 95 points in premarket trade. the nasdaq lower by 13 the s&p down by 10 yesterday stocks did swing between gains and losses the s&p 500 erased a nearly 1% gain look at the ten-year that's been a part of the market volatility we are above 2.8%, 2.83% a nearly four-year high. and look at xlodities as well. a firmer dollar we've been seeing weakness in the energy market oil lower by 1% here $61.24 ice brent crude lower by 0.3%. let's talk more about the haven't market volatility. joining us is russ koesterich. good morning to you.

what changes have you made to your global allocation given the pullbacks we've seen >> we actually haven't been doing much we pulled back some equity exposure a couple weeks ago. we cable into t we came into the volatility in decent position and the last few days we have been adding to high conviction names our view is this is a normalization of volatility. and to the extent we find names we like, we are picking up a few bargains now >> like what >> i see a couple areas where we have value in the market one of which is japanese equities this market did well in 2015 there's arguably one of the last cheap markets left in the world. given some recent volatility and weakness year to date, many of the more cyclical names in the market appear attractively valued to us >> do you feel what happens when the bank of japan starts

tightening, how important is yen weakness for your buy call on japanese equities? i guess it's a thought that applies to many people here who might be long european equities. >> it's an excellent question. historically the direction of the wren yen is an important determinant of japanese stocks you saw that correlation break down a bit in 2017 this is a cyclically driven market, but as the domestic economy strengthens, it's less dependent upon the yen >> we've seen wild swings over the past week, much more than we've been accustomed to is this the new norm given the number of risks out there or wildca wildcards, whether it's rate hikes, inflation, or tightening from japan or europe >> this is a return maybe to the old norm 2017 and the back half of 2016,

they were just unusual years to see volatility that low, that long of a period without correction was unprecedented we're seeing going back to more normal conditions. in an environment in which valuations in many markets are stretched, there is withdrawal of monetary accommodation in the u.s. and europe, that's an environment where we will see a return to more normal volatility conditions >> would you call the selloff a technical pullback or a cyclical downturn >> i think it's the former if we look at the real economy, you have an economic acceleration, yes, there are some more concerns about inflation, but just to put things in perspective, core pce is at 1.5%

finally while financial accommodation is being withdrawn a bit from the fed, this is still an environment of a weak dollar, tight credit spreads and generally easy money on friday and monday it was almost entirely position under windin winding. >> even on days when we've seen massive selling off of equity prices, companies in the debt markets, credit spreads have not widened. how big a fear is that for you if we continue to see treasury yields elsewhere in the world rise in terms of a potential not bubble to bust butrst but somet like that. >> if you go back and last at the post crisis environment, the best indicator of volatility is

credit spreads the fact they have not moved and you do not see that panic get translated into credit markets suggests this is mostly about equity market unwinding. in a case where there's a cyclical downturn where people worry about the economy, that's an environment where they start to demand more, a greater premium for more leveraged speculative companies. to the extent we're not seeing this suggests this is mostly about the technicals and stocks, less about the broader economy >> when it comes to politics what do you think is the biggest risk for markets >> the one thing we would be concerned about is any evidence of more trade friction clearly we had a lot of political noise last year. it didn't affect the market. the reason it didn't affect the market is i doene don't think i affected the real economy if we see disputes with nafta or china

and that impacts global trade, that's more sear yois. that serious. >> russ, thank you very much senate leaders reaching a long-term spending deal with just hours to go before another government shutdown. kayla tausche is live in washington with the latest good morning to you. >> good morning. you guys have the countdown clock going. 18 hours to go the senate and house will vote today on that broad budget deal that was agreed yesterday before that spending runs out at midnight threatening another shutdown they did strike that two-year deal with bipartisan support it lifts 2011 spending levels by 300 billion, it raises the debt limit until march 2019 and it includes add-ones like disaster relief, funding for community health centers and children's health insurance. but it does not include imfla immigration reforms.

top house democrat nancy pelosi has not yet offered support from her caucus for that very reason, pelosi making a record setting eight-hour speech on the floor protesting that fact and asking for assurances from speaker paul ryan that he will prioritize immigration. democratic votes will be neede in the house if conservatives continue to balk at the price tag. last night the house freedom caucus announced it officially opposed the spending hikes here's mark meadows. >> for many of us, we believe that the number that is become put forth on the nondefense side of things is very difficult to support. i think it's fiscally irresponsible to support it. >> two gop aides yesterday said support for military spending should outweigh jitters about the debt limit, though no vote times have been set for today. you can imagine that leaders are still trying to gin up support

with their leaders >> kayla, i can't believe you're surprised we have a countdown clock. 18 hours is a short one. >> something about the fact that a deal was agreed to yesterday made me think the countdown would cease. >> nope. definitely still need to have it but clearly still pressures to get this deal on both sides politically. the fact it's a two-year agreement, how positive is that for the president if it does get done versus some threats he put out about a shutdown being something he could work into his favor. two years would give wiggle room to get on to other topics. >> there seems to be some level of confidence that the president will sign this bill. what they were concerned about is exactly where he stands on immigration. that was the topic that he said he would be willing to shut down the government over.

speaker ryan said we want to get a package together on immigration that the president will sign. and there's head scratching about what that is and to raise the debt ceiling for more than a year, the president said he wants to do away with the debt ceiling altogether, that should be a component of this that he will be excited about, that they don't have to deal with that during midterm elections and until this time next year. that should be something he should be excited about and also increasing military spending, which he has been pushing for since releasing his budget a year ago >> seems like we're seeing progress on military an defense spending, it just comes down to immigration. are there any concessions that you think the democrats are willing to make today? >> it seems to be we'll go through the legislative logjam to pursue immigration. the senate majority leader said they would be pursuing this through regular order beginning next week. so there will be debate on the

senate floor we have not heard what the house plans to do. that's where some of the immigration hard-liners on the conservative side could hold up the process there if they were to do something legislatively. we'll see how speaker ryan decides to win over nancy pelosi's support and if he will make that commitment >> kayla tausche, thank you very much tom trending stories, landon dowdy has a look at those. >> kylie jenner and her new baby girl made instagram history. her and baby stormy became the most liked instagram photo ever garnering over 14 million likes in one day the title for the most liked photo was previously held by beyonce and her twins with 10.p million likes. >> do we know the name of the baby >> stormy. >> very cute >> 14 million. >> you're close. superstar fame

>> you have 12 million >> stormy is a girl, boy >> that's what the pink is >> there we go any way -- >> switching gears amazon will deliver groceries through whole foods from its prime mail service amazon will expand this across the country later this year. prime members can get orders delivered within two hours for free >> hopefully they can get to new york soon. i can imagine this being a popular service in the city. >> it's a focused set of cities so far, it's a crucial test. the question for whole foods how much they can expand the delivery zone and keep this going. >> the big part of the integration between whole foods and amazon in the acquisition we saw last year.

>> > >> mcdonald's is giving away a big mac ring every layer of the ring represents different parts of the burgers using diamonds for the sesame seeds the most creative, witty tweet will win the ring. look at that thing >> the worst thing i've seen who will wear that i know it's free, if it's worth $12,000, no one would ever buy that they'll give it away for free, sure i'm not sure you would get the 12,000 resale value. >> maybe more. are you kidding me >> you'd be surprised. >> if i have a big mac, i don't tell people about it, i enjoy it quietly. >> you're a closet eater i can see wilfred in a closet, eating a big mac >> i can't -- not for me

i done think very valentine's dayesqu esque >> can you imagine receiving that >> i say yes >> i'll put it on ebay and take the cash if there's resale value to it. still ahead on "worldwide exchange," futures pointing to a lower open after a wild week on wall street. lower by 150 points on the dow orwituned, you're watching "wldde exchange. we'll be back with more market action

welcome back to "worldwide exchange." we're pointing lower to the tune of about 140 points. near the lows of the last couple of hours but it's not accelerating to the down side. looking steady the nasdaq down 19 s&p down 13. finished flat on the dow yesterday, having been up as much as 381 points, down 130 another volatile intraday session. the s&p down 0.5%. nasdaq down 1% down about 2.5% to 3% for the week oil prices down about 5% for the week coming into today down 2.5% yesterday. energy stocks have been hit hard in the last week or two. oil at 61.3. mike santoli has joined us good morning to you. >> good morning. >> broad question to start i saw a great comment yesterday, when we came up through 25,000

on the dow in november time there were comments of momentum behind the market is great but we have to worry about valuations as we fall back down through that level, people are saying it's a buying opportunity. market psychology, human psychology is an amazing thing the valuations are still stretched. >> i think some people are forgetting that. i think we anchored ourselves at those highs to believe there was something that was legitimate there. and there was. between november and late january you had a massive upward revision in 2018 corporate earnings because of the passage of the tax cut law that's what the market is struggling with now, how much to pay for these earnings, and also to reflect on the fact that we priced in a lot of good news through january. investor sentiment got extremely excited about the good news. i think you had to work that

off. as we work that off what do you see? we see there's all these extraneous factors creating forced selling you know, so it's trying to almost delegitimize the fact we were at a high level and had to pull back a little >> so people are looking to the bond market for guidance when does the bond market become a bigger worry sign for investors? 2.9%, 3% >> it remains the main background worry now i don't think it's a magical level it has to get to, but the fact it has not ceased this upward mark in yield even when some of the economic data was not surprising to the upside quite as much, the yields did not go down. that creates an idea it could gain further momentum to thefile

question how much do you pay for credit spreads >> if you look to europe, talking about spreads with countries like greece or corporates, the spreads are so narrow, trading below u.s. treasuries does that suggest it's a bubble waiting to pull back potentially? >> i think the initial takeaway is it's modestly reassuring that credit stress has not shown up in the equity correction you can look to the credit market, corporate bond market and say usually that's the smarter, wary wart market that will tell you if there's a marco issue that the stock market is sniffing out the bigger question is that actually an artificially supported market at this point we just don't know that. >> what do people need to know about the rise in volatility in these vix products >> obviously there's a lot to of

dogs being wagged by tails right now in the market. so there have been waves of forced selling and feeders of forced selling related to volatility exposures i think yesterday there was a sense that maybe we were getting a bit passed that. some of that selling is getting exhausted, now we're in a game of the market trying to figure out if tuesday morning's low was a reliable trading low, and if you don't havethese waves of supply hit the market because somebody is trapped in positions and has to get out >> so far the dollar hasn't had a big correlation factor, in the last few days we have started to see a big day up for the dollar yesterday, higher again today. are we at a turning point? >> i wonder if it is or if the dollar was oversold and needed to turn. the low dollar was a reflection of loose global financial

conditions that was helping stocks. if it tern turns up, maybe youn understand why it's happening, but it's not helping the case we have this maximum liquidity grow growth >> still ahead, the oil slide. prices coming to the lowest levels of the year we'lha ml veore on that when "worldwide exchange" returns

welcome back to "worldwide exchange." futures trading at the lowest level we've seen this hour with the dow down 173 points in premarket. let's bring in tom essey of the sevens report. we've been looking for guidance from the premarket action every day this week as to what we should expect in the normal trading session. what do you make of this week and the recent volatility. is it over or is this just the start?

>> i think we're in a bottoming process right now. watching the futures this week has been a great spectator sport. one hour we're up, the next hour we're down i think you're seeing the market trying to find a bottom and stabilization. that doesn't happen overnight or in a v, but i think we're in the process of finding a bottom. >> rising rates has been a spark for the equity market selloff but something you think should be taken as a positive >> yes you can't just look at the nominal yields you need to look at the yield curve also the yield curve is one of the best indicators of recession that we have while rates have been rising, the yield curve has been steepening that's an important positive that people don't want to miss >> has the pullback created buying opportunities yes. i think if you look more towards cyclical sectors tech has been heavy, led lower

by semiconductors. you can rotate out of tech into more cyclical sectors. banks have gotten hit hard on the dip, but rates are resilient. you can buy banks here what about the energy sector and oil prices down 5% coming into today for the week as a whole. down again today what is your view on those stocks and the commodity >> i think unfortunately the fact that there is a lot of oil, supply is rising, that bubbled back up now that you don't have so much from opec and russia at the same time there's a demand side. i do think there's more consolidation in oil yes. are we going back to the 40s and 50s? no energy stocks have gotten hit very hard. for those that can take the

volatility, there's opportunity. >> thank you very much that's it for "worldwide exchange." we are pointing lower in the futures market, but relatively ab a not too pronounced. "squawk box" will pick things up on the other side. does it make the short list? you remembered that too. yeah, i'm afraid so. knowing what's important to you... it's okay. this is what we've been planning for. thanks, bye. that's what's important to us. it's why 7 million investors work with edward jones.

welcome to "squawk box." dow futures pointing to another lower open following yesterday's roller coaster ride on wall street. crude realities. oil falling to a one-month low as u.s. stockpiles grow. and a countdown shutdown or countdown to a shutdown. congress still has to pass a spending bill by midnight to keep the lights on in washington we're live in d.c. with the latest it's thursday, february 8, 2018. "squawk box" begins now. ♪

live from new york where business never sleeps, this is "squawk box. >> good morning, we're live at the nasdaq market site in times square, i'm kelly evans with andrew ross sorkin sitting in with us today is steve grasso saw you about 12 hours ago, hello again. here we are. let's check in on u.s. equity futures. yesterday, another 500-point swing session. we closed lower. this morning futures implied lower, 178 points on the dow, 18 on the s&p, and 30 on the nasdaq check on the overnight sessions as well. some green in the nikkei, 1% gain the shanghai is down 1.5%. this after data shows china with