let's try this again. green arrows as the voles try to battle back from the dow's worst two weeks in years a welcome correction that's how christine lagarde is explaining her comments to cnbc coming up. blues, a developing story, the fire sale of the weinstein company, as the u.s. attorney general files a lawsuit against its company and its founders it's monday, february 12th, 2018, "worldwide exchange" begins right now

and good morning, welcome to "worldwide exchange" here on cnbc i'm domenic chu. >> and i'm contessa brewer sara and wilfred are off this morning. great way to get started when you're seeing positive signs in the markets. >> let's get straight to the markets as contessa mentioned we're seeing green across the board on the futures side. with the dow trading the way they are, we're looking at possibly a 300 point open for the dow on the upside at least if things stay the way they are right now. s&p up by 32 points nasdaq indicating an open around 75, 76 points as well a lot has been driven off interest rates those worries with what's happening with u.s. government bonds. so, let's take a look at those yields for right now, we're seeing a move higher slightly in the ten-year treasury note yield. 2.88%. almost 2.9%, the last trade there. that reassumption, contessa, on the upside for this morning's

trade. we'll see if that has any kind of effect on whether or not people have that risk tolerance if it stops. >> we've also seen bounceback in asian equities as well hang seng down a little more than .115% kospi was up as well, almost a full percentage point. japanese markets were closed for a holiday. and in european equities right now, we're seeing green across the boards the dax, the cac, ftse, all in positive territory and imf director christine lagarde said the sharp market swings over the past couple of weeks have actually been a welcome correction here. she says they're on a major source of concern. she was speaking to cnbc in dubai. and la guard says economic growth is strong, but reforms are needed to avert future crisis >> you compare valuation, you know from a week ago, there's

been a market correction of anywhere from 6% to 9% which, frankly, given where asset prices were very high, it's in our view a welcome correction and we have observed studily, despi suddenly, despite volatility, the market pipes and mechanisms have worked well and we're also seeing that the financing is still plenty and very much available for the financing of the economy, so, you know, corrections happen they were due to happen. and that's where we see it >> la guard says authorities need to shift to regulating activities instead of entities the imf is forecasting global growth at 3.9% this year which la guard is saying a good backdrop for the reforms she's suggesting >> it's interesting that we need a healthy correction every once in a while because it has been so long since the market has

seen a pullback whatsoever so at least we think it's not such a bad thing >> and also about regulating activities how that might trickle down is for the future to see if you're regulating those activities, rather than entities, it will make a big difference in the impact >> absolutely. and the market effects, perhaps are the turmoil, hasn't been limited to just the stock market although they've been dampened in other place we want to take you to the commodities. that's one of those battlegrounds. you take a look at oil inflation concerns may have been dampened over the past week. wti crude, $60.39, the last trade there that's up by 2%. wti crude moving high. ice brent crude, the benchmark in crude prices, $63.89. almost a 2% rise as well maybe some of that is driven by the currency markets because we know the dollar has a huge impact on these commodities.

as you can see there's a dollar weakness against the euro. $1.26 there. dollar, 1.0869 and in pounds, 1.2838, 1.3838 right now, contessa, oil, gold, commodities, certainly those things we'll watch let's get ready for the week ahead. there's a fair amount of economic data wednesday, look for retail sales and cpi thursday, jobless claim, ppi, philly fed, industrial production and nahb survey friday, housing starts, import prices and consumer sentiment. as for earning, two dow components in 57 companies in the s&p 500 report this week, that list includes pepsico, under armour, smemet life, kraf soups and coca-cola.

joining us now on the cnbc news line, we've got fast money trader steve grasso, he's director of institutional sales at stewart frank doe steve, i've got to tell, we've been riveted with the coverage from the floor and edge elsvery else how do the markets feel, does it make it feel as though the bounce has legs? >> good morning, dom, good morning, contessa. when i look at the balance we had last week, i try to put some sort of a consciousness about every other selloff i've seen. and you know, is this a real recovery is it a real rebound when you saw the selloff and when you saw the sell-back the middle of next week, we sell off perhaps for no reason. and i asked people why did you sell off

what's your opinion? people are saying inflation, due to the ten-year. you tell me then, why the yields were down on certain dates, and the market was still down. so, what's gotten me concerned, dom, is the selling. where it doesn't matter, we're still going on a daily basis, so, yes, a concern about the market as a whole being at its levels right now it feels like it's just a really rebound oversold notion to market so, today is extremely crucial >> but, steve, when you're talking about not factoring in these bigger, broader indicators, how did that be the case we've seen this enthusiasm, there's been all of this talk about animal spirits out there isn't there something similar when you're in correction territory as well where you're just ignoring geopolitics, you're ignoring ratinerates, inflation, what a new budget

does, what tax reforms does? >> yeah, people have said we've ignored and shrugged off things before with the market down as we were escalating so high, so quickly. and we were overextended over that 200 average and the 50 and the 100, probably the longest time probably the longest time in history, as far as the 200-day is concerned when you see that rebound, you know, i was the one saying, hey, you can't really thread this needle the last time we were this long centered above the 200, it was only 42 days so, it's really difficult to pick the timing of the marketplace. by what is really peculiar to me is that when you see the market rally, and you wind up getting a selloff late in the day, where is the risk coming off and why? and if you think that the risk

is done, if you think that the risk parity dies which is a real walkdown, people need to re-establish the levels and markets at fair valuation. but i don't know how to figure that out because funds really have been long and they really want to get back in line with what they see is a fair valuation, is that 2500, 2600 that remains to be seen. >> steve, we'll be leaning on you guys and your colleagues on the floor to provide us color with whether or not we do see this bounce hold steve grasso, thank you for joining us here for the early call on "worldwide exchange. >> thank you in corporate news, it looks like qualcomm and broadcomare planning a valentine's day meeting. broadcomraised its stock to $82 per share. the "wall street journal" has

reported that the company has secured more than $100 billion for its hostile bid and have enlisted the help of two other funds. and landon dowdy with the details now. and it has a lot to do with maybe this lawsuit, right? >> hey, there, dom, that's exactly right. the weinstein woes continue. new york attorney general eric schneiderman said said he has filed a suit against harvey weinstein, his brother robert and the weinstein company. the suit alleges that the weinstein executives and board failed to protect employees from former ceo harvey weinstein. one of the most influential men in hollywood and more than 70 women accused him of sexual misconduct the studio denies those allegations. sneiderman's lawsuit puts the negotiations on hold in a statement, weinstein's attorney told cnbc, quote, we

believe that a fair investigation by mr. sneiderman will demonstrate that many of these allegations against harvey weinstein are without merit. guys, back to you. >> thank you very much in other corporate news, oxycontin maker is cutting sales in half. pharma companies have come under fire for the way they've marketed addictive painkillers privately held purview has been accused by 14 states and ford revs up production for two suvs the automakers is planning to raise production of expedition and lincoln models both manufactured in louisville, kentucky ford is looking to boost its own profit margins and the u.s. units of takato

reaches an agreement that apaves the way for takata to entity bankruptcy and takata's air bags related to deaths and injuries, promising the largest recall in automotive history. and another misstep for wells fargo, and trying to make amen amends for having people buy auto insurance they didn't need. wells fargo will work to make sure customers get the appropriate amount of communication. coming up, going global. we dive in the overseas market action that's straight ahead. first before we head to break, check what's happening to futures because they are very much green across the board. the dow indicated it opens at 212 points so far. stay tuned you're watching cnbc

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welcome back to "worldwide exchange." if you're just waking up or heading into market, let's get you up to speed on the market action, there's a lot of green on the board if you check out the equity futures. the s&p is slated for right now to open up 32 points the dow by 72 points nasdaq by 75 they're following or maybe

leaving the sentiment of what's happening on friday. what's happening in the european markets we're seeing that risk on feeling on the european stocks the german dak up and cac in france up. we're seeing green in global markets. let's see asia remember, japan was closed the hang seng off by 0.2 of 1% the shanghai deposit up by 0.75. and the kospi, 1% as well. let's talk about oil, we have seen short term as of late for lower prices wti crude, $60.26. up by 1.7% and ice crude up by 1.5% and we're seeing oil prices up as well not just as future but as a pump. we'll have more on that. coming up, riding the wave the best sectors to buy in

recent volatility. stay tuned you're watching "worldwide exchange" on cnbc. in our investment experience around the world. call us or your advisor... t. rowe price. invest with confidence.

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prevagen is now the number one selling brain health supplement in drug stores nationwide. prevagen. the name to remember. but through goodt 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." let's get you up to speed on the market action, as we've been telling you for the past 20 minutes or so, futures are up and up big the dow owns up by 32 points s&p by 32 point, nasdaq by 78. after a nice big up day to close things out on friday let's get back to the market

actionoveral overall, at market test on friday the s&p 500 briefly, briefly went below its 200-day moving average intraday before stocks reversed course to close sharply high per let's bring in the technical analyst and head of research at janney montgomery scott. i've got to tell you, is it as simplistic as we saw but it sure seems short term like we did find significant support at that 200-day average trend line >> yeah, i mean, i couldn't believe it myself, dom i'm a technician, we were watching the two-day moving average we were saying there's no way they're going to bring that down and rally it off of that indicator, that particular indicator. boy, they did. it was sort of exciting. i know there's a lot of fear baked into that last week.

the markets came in very overbought into the whole correction but to come down to that 200-day moving average and give us a nice strong close. and then from hearing your comments seeing the futures up very strong this morning i think that's exciting. our take is i'm not entirely convinced this whole corrective cycle is completely over but a bounce jaufl the 200-day is certainly a good step in the right direction. and what i would say is, going forward, we're going to have this oversold rally or this strong surge today and we'll see what type of levels we can achieve to maybe get back on track. even if you go and break that 200-day again, a lot of technicians may agree, the direction is probably more important than closing above or below the hard deck. i mean, once that 200-day rolls over, if you look back in history, when we've broken that 200-day moving average and it's rolled over, that tends to be where we've had much bigger problems even cyclical downturns

in the market. so, a lot of tiles you can see volatility you can see choppy trading around that indicator. i think its directional buys are probably more important so it's still rising wee believe 2600 on the s&p on a weekly closing basis would be a strong sort of threshold to watch. we achieved that on friday we have our fingers crossed this week that perhaps we can get back on track. i think overall, beyond this correction, the method that we try to get to clients, longer term basis, we still remain bullish. you got to remember the markets came into this year, extremely overbought across multiple time frames, not just a short-term basis. but when you look at the weekly charts or monthly charts very overbought i think the most overbought we've seen if eye few years. the fact that we're seeing consolidation, forecast taking, reducing some of that froth in the market i think it's a healthy thing on a longer-term thing, based on

demographics and valuation cycles we think the markets are probably going a lot higher in the years old. >> dan, you're joining the voices here in that optimistic outlook like christine lagarde of the imf where is that volatility coming from $23 billion almost have left the building so to speak >> so, it's interesting, people have been talking about interest rates and i think they've hit something. i don't think it's the only thing driving this market. you watch the ten-year note yield. it's been rallying it's been pushing towards 3% and that's generating a lot of fear. the fear is that we're moving from a reflation father growth cycle off of that 2000 -- crashed bottom in 2009, a reflationary cycle off of those into inflationary times. that's scaring a lot of investors. you got to remember think of the key playing the stage. you've got baby boomers, gen

xers and none of vus ever experienced in realtime a rising multiple, a secular bull month in stocks, against a rising interest environment and, so, this is perhaps freaking a lot of people out over the short run they say it can't be possible. you can't have multiple expansion. you can't have economic expansion in that rise well, what we did was, we looked at history and history has been very clear on this, you absolutely can have a rising interest rate or inflation or reflationary bull market we had it in the '40s and '50s i know that was a long time ago. again, the market has seen this before it's just this generation has not. so, i think we're seeing this resetting and replacing before we move forward. >> dan, thank you for joining us, janney montgomery stock, he watches all of the charts for us he will be doing that again for

us sometime soon two big events in washington today. the white house expected to release its infrastructure plan and its budget nbc's tracie potts joins us from washington both big, tracie >> yeah, both a lot of money, contessa let's start with the budget. we thought that was resolved last week, right wrong. last week was the congressional blueprint for how money should be spent what we'll see today is the white house rolling out its more specific and detailed plan of what they actually want to do with tax dollars they had to scramble to change it after that deal last week and it comes with a pretty big price tag. but what the budget director mick mulvaney says, we're still asking for cash, how much could be spent on different areas. they're going to be urging congress not to spend as much, especially on some of those social programs that democrats wanted and to shift some of that money into the president's priorities like infrastructure. a $1.5 trillion infrastructure

plan being introduced today. some conservative republicans already balking at the price tag. but a lot of that money is not going to come from washington. $200 billion is what they're pitching the rest, the majority of it, from private businesses. and state and local governments. in other words, some states and cities are already talking about whether they'd have to raise taxes to fund this we're talking about a plan to fix the crumbling roads and bridges in many parts of this country. and even rural internet which is going to affect a lot of people here what the administration says they want to do is also cut red tape but they see pushback from both sides of that, from democrats, on the environment, from republicans who are concerned about the faster approval of some of these projects and whether they'd be skipping over some important things there. the administration cabinet mens planning to go out on the road and sell this.

but they're going to start with a briefing to some of the state and local leaders today as we see the plan roll out, contessa. >> we'll see what kind of reception they get when they do that rollout, tracie, thank you. still ahead on "worldwide exchange," around the global market picture entities top corporate stories. plus, trending this morning. your family trip to disney just got more expensive we're going to have all the details after the break. as we head out, let's check out the futures. very solidly in the green. dow opening up 280 points as things stand stay tuned you're watching "worldwide exchange" on cnbc.

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breaking news, dow futures pointing to a nearly 300-point jump at the open but buckle up, it could be another wild ride on wall street this week. developing deal news broadcom reportedly supporti in $100 billion bid plus, go for gold, highlights from the first weekend of the winter olympics it's monday, february 12th, 2018, you're watching "worldwide exchange" on cnbc. ♪ good morning, welcome to "worldwide exchange" here on cnbc i'm domenic chu. >> and i'm contessa brewer sara and wilf are off today. >> let's get straight to the markets because they are the

story. if you look at the dow futures we're looking at an open that is a little slightly worse than a half hour ago. we were slated to open at 280 points as things stand the s&p about 30 points and nasdaq futures pointing to a 70-point rise as well. a nice bounce, following the bounce we saw on friday. also checking what's happening with ten-year note yields because right now we're seeing a situation that has been a little bit interesting as of late we're seeing interest rates rise as stocks rise as well the ten-year government note bond yield right now, 2.88%. so, a trend slightly higher in yields as the stock futures pick up steam as well >> and the asian equity has a failure good are run monday. the japanese markets are closed. hang seng down 0.16% shanghai up 0.75 and casspi up 1.91 in europe, all in positive

territory. the dax up 1.65% the cac up 1.4 ftse up more than a percentage point. italy up almost a percentage point and spain as well following suits. a real bounceback after one of the worst weeks in the market in years for europe let's talk about what's happening with the markets and why things are going to evolve right now with chris ruppy chris, it's great to have an economic voice on a week like this we've had some of those drivers happen and ultimately it's because of the monetary and fiscal policies coming out of washington, d.c. so, let's talk about what you think is going to be the key factor driving markets this week coming up. >> well, i mean, we're very concerned about the outbreak of inflation, ever since we got that wage data back on february 2. so the bond market yields are

going up, that's a dynamic and the wire bonds going up and became afraid. so, on wednesday, we get cpi inflation, right so, maybe if cpi -- i don't think it's supposed to be up that much. i mean, you get -- my professional job as an economist really is to watch news headlines flash all around and there's a lot of famous fund managers saying, oh, inflation is coming, it's coming wait for it, here it comes let's see what happens wednesday. maybe cpi inflation isn't so inflationary and things will calm down a little bit, i hope >> and there's been a lot of expectation about the fed continuing to raise rates now. and with this market volatility saying, oh, but wait, if you look at the way the fears over inflation have affected the market, they're not going to want to do that. what's their view? >> yeah, i mean, it's complicated, my view >> let's have it >> i think the problem is, you know, right now, the fed's kind

of walking a line here you've got an awful lot -- first off, we only have three fed governors including the chairman and vice chairman so they're understaffed we don't know what powell's really going to do he'll tell us in a couple weeks before they actually do something in march so, let's see, don't forget, this fed is very, very cautious, and happen on raising rates. there's a number of people who say inflation is too low, right? so if you get the too low inflation people who don't believe the outbreak and now stocks are on the fritz. i mean, they're down 9% over the last two weeks that's a big hit to weld. so i would think some are feeling a little skittish. you're right, fed futures, 80% of a rate hike marks 21. it seems a little high >> as a financial economist, you take a look at the intersection of markets as well let's take a look at what's happening in washington, d.c

president trump is going to ask congress what he wants from the budget he's going to unveil the infrastructure plan. we're getting that data about inflation possibly coupling out how much is the d.c. agenda driving what's happening on economic side of thing is that what markets are reacting to? >> yeah, i think, the bonds are getting it both ways here. the high-yield trend is being extended because of all of this deficit spending, right. that was a surprise late thursday night right? all of a sudden, they're doing $300 billion more additional government spending not including the disaster it's another $100 billion of spending and i think the market is still adjusting to that right now. don't forget, whenever they talk about trillion dollar deficits it's really going to go to 1.2 trillion but then you got to factor in the balance sheet winddown of the fed.

that's 360 a year once it starts running in october 360 plus -- we're talking about a $1.5 trillion budget deficit that's the new news making bonds go up, i think, in addition to inflation last week.ruppky, tha joining us it looks like equal command broadcom are planning a valentine's day meeting. they're set to meet to talk about broadcom's acquisition offer. broadcom raised their stock to 82 bucks a share and $100 billion in debt financing for this hostile bid and the hire of a large private equity firm. new york other than general eric schneiderman isle suing the

board of weinstein alleging that the board failed to protect employees from harvey weinstein. sources say the lawsuit has put discussions on hod weinstein's attorney tells cnbc a fair investigation will show how many of the allegations are without merit. and oxycontin make r purdue pharma is cutting staff in half. privately held purdue has been sued by at least 14 states accused of deserve tiffly marketing opioids to generate sales. and of course, we're also watching shares of airbus as well reuters reports the company halted some jet deliveries and test flights after engine snags. airbus has told airlines and leasing companies it can't say how long it will take to resolve the issues airbus shares up up by 5% on an

upday. , shares of heineken on a ten-year high today. the company is cutting its margin growth target for 2018 below the level it guided for the past three years heineken cites the volatile market and the impact of acquisition in brazil. you see the stock down there now, 2%. it looks like -- that's an improvement over where we were earlier today. >> sure does look like that. still ahead on "worldwide exchange" -- a live report from the olympics, that's next. and as we head to break, let's get a check on the european stocks. contessa just mentioned one of them at this hour. a lot of green on the board. ftse up, cac up by 1.5%.

♪ welcome back to "worldwide exchange." a busy first weekend at the winter olympics in south korea carl joins us live from the games out there. carl, i know there's been a lot of stuff happening but is the weather really as bad as all the reports are making it out to be. no skiing happening right now? >> reporter: yeah, there's been a lot of postponements of skiing because of cold weather. mostly wind, dom it's interesting, it's definitely cold but the wind is a story we'll be talk be about later today. you mentioned day three of competition what a weekend of

events really where politics started to overshadow some of the events kim yo-jong attending the hockey and the meeting with president moon a lot of debate over the weekend just how dangerous this charm offensive is out of north korea. and whether or not even the media is beginning to glamorize some of kim's vitt here. vice president pence in "the washington post" today, dom, said the ugg is willing to engage in talks after trying to maintain pressure over denuclearization north korea, the first ever combined team for the two countries ever loses to switzerland 8-0. medal count goes like this, norway eight, canada, six, netherlands, five, germany, four, u.s., four coming up, red gerard, the 17-year-old who won the

snowboard for slopestyle who else the first athlete to win an olympic medal who was born in it's 2000s >> oh, my goodness >> it didn't take that to make me feel old. >> oh, my goodness, 2000s. >> you see his parents out there cheering him on. i think the unbelievable thing is how much inspiration i feel like to start pressuring my children to be gold medals >> never too late to start >> my daughter is 11 years old, i'm like, when are you going to put figure skates on >> that's right. >> reporter: bring on the sponsorship. >> when you're out and about, what are you hearing about people from south korea about the north koreans and about the sister being there and all that? is there as much enthusiasm as there is in the press? >> reporter: you know, obviously, it's very tense, i think among the olympic community and the athletes they're really trying to separate the athletes who have come to play versus the politics which is a whole different story. i think in that respect, the

olympics are probably what you would call a foreign policy, right. the games are inclusion, about communication. obviously, seeing those north korean cheerleaders at hockey over the weekend, reminded people of just how dangerous it is to fall for this charm. given what we know about their abuses the way they treat their residents and their military aggression so that's going to be an ongoing story for the next few days. >> it was interesting that the vice president invited the father of that student that had been or ttortured for so long i north korea so sit with him. carl, great seeing you we'll check in later time now for the top trending stories, landon dowdy back on set with us. >> universal "fifty shades free" opened on top of the box office made $38.4 million in america.

nbcuniversal is of course the parent company of cnbc "peter rabbit" hopping into second place the sony film garnering better than expected $25 million. and the warner brothers third place, making $12.6 million at the weekend's box office you have seen any of those >> i haven't seen any of those yet. >> this is like the "fifty shades" -- i can't take this >> i tried reading those books i haven't imagine sitting through the movies >> i haven't read them yet >> here's the thing, i feel compelled to do so because it is -- >> because of the hype >> and it's an nbcuniversal production i kind of feel like i want to watch these things but i have not been able to watch those things >> in other words, i may be in trouble with my corporate bosses meanwhile, the happiest place in the world just got more expensive. walt disney announced several

price hikes to its theme market structure. it hit visitors to disneyland the hardest with a nearly 9% price increase disney uses a three-tier structure to help manage clouds during peak periods and in the leadup to the new "star wars" attractions next year. >> this, i have to weigh in on i'm a new parent as you guys know, i have an 11-month-old daughter at home. i'm always saving to to speak to do a disney vacation contessa, you got twin boys you tell me. >> i took them in october to disney z disney >> it was a lot of money, right? >> it was very expensive, you add 7% >> we'retalking pixies $135. >> here's the thing, you can go on the calendar and find the cheap are rates for the days less crowded which it's a win-win. >> by the way if you're going to

orlando to go to disney world, you know where you should stop >> universal >> there you go. universal. >> and a beautiful experience there as well. and moviepass hits 10 million subscribers after reaping are the 1.5 million users milestone. to see one movie per day at thousands of theaters nationwide some popular amc theaters are excluded, though and it allows users to subscribe for $7.95 per month instead of the $10. >> fascinating i think it's fascinating and they're paying a full ticket price and trying to get it back from the movie theater amc is saying, no thank you, we're not interested but if you're sieeing a boost in atten dance. attendance. >> if you love to go to the movies, it's a good deal time for the must read

stories those catching our attention. my pick is in "the washington post." it's titled "the one-word reason congress's debt deal should worry us." and getting the bipartisan agreement reached last week by congressional leaders is nothing if not a huge evasion of responsibility and it will make the necessary choices fire an ageing society every larger budget deficits have become their means of making policy. so why should we worry about escalating debt? the answer, in a word, prudence. >> and my pick, "washington post," where fred high yet compares republicans and democrats in congress to children, to not the amount of vegetables but the amount of ice cream they've eat. help quotes the democratic senator from colorado, quote, this is no way to run a country said senator michael bennet, one

of the few with the courage to right the bill last week we should be working with a balancing way to fund our priorities while ensures we should not strangle the next generation of americans in debt they did not incur the failure of leadership is the lost opportunity to shape american greatness for the next generation wee be we've been talking about our children this morning. it's very concerning that we are ignoring the debt that we saddled them with. the fact that the american treasury may not be seen as a safe haven if we keep adding a trillion dollars of debt >> and that's the same for the samuelsson article, that there's a line you that don't want to come close to crossing we came very closely back in 2011 we had the u.s. debt downgraded because of the happenings out of washington do you want to get to a point where people actually

quote/unquote lose faith in the u.s. bond market that's something you that don't want to see, especially since we've heard michelle caruso-cabrera talking about it. and the bond currencies. obviously a lot of things coming up right now >> i think it deserves more attention and more look from long-sighted planning in washington still ahead here on "worldwide exchange," we're getting you ready for what could be another wild week on wall street the futures right now they are green. you can see right now, at least for the time being, the dow starting to open up 283 points the s&p, 29, 30 points stay tuned you're watching "worldwide exchange" here on cnbc

welcome back to "worldwide exchange." if you're just waking up or heading into work, let's get you up to speed with what's happening with the markets like i've been telling you, it's green across the board when it comes to the stocks.

s&p 500 opening up by 230 points the dow, 285 nasdaq 67. solidly in the green as for the european side of things, contessa has been mentioning it all hour we have seen the risk on trade coming up. ftse 100 up by 1.45% and we want to show you what's happening with gold prices there is a little activity up by 0.5% 1,323, about the last trade there. what i want to show you is the lack of volatility that we've seen during the recent market m melees, perhaps a sign that the recent market melees haven't been a huge risk factor with the gold prices. >> we talked about what happened last week. let's talk about the week to come

michael farr is a cnbc contributor. there has been a buffet of low interest rates here, michael are the markets balking at going on a diet? >> i think that's a great analogy, contessa. yeah, i think they are, but i think there's something bigger at work here this idea of interest rates and cheap money for years has really fueled a serious market rise since the depths of 2009 that's shifting now. the federal reserve is starting to raise rates and upon that course if we get the three or four hikes this year, we're going to see mortgages at 3% or over. that's freaking out out real estate the balance in the economy and the real battle out there is coming from earnings because with this tax cut, with these other spending programs we just heard about from congress, they're dumping a lot of stimulus money at least into corporate hands, a little bit into the hands of the average

joe. so earnings are starting to go up and those earnings are what's going to put money back in the public's hands to spend for the new mortgages. this is a battle and this volatility, i think should probably not have been a big surprise >> michael, what's the number one question or concern that you're getting from your clients, given what we've seen over the last couple of weeks? >> dom, most folks want to know, is this going to be the big one. is this a bear market. are we going to have another 2008 and 2009? and of course, the answer is nobody really knows. but when we look to those huge drops, right you expect that there's a bubble somewhere, or there's a financial banking crisis as there was in 2008. given this 10% pullback, we've got, you know, markets trading at 16 times earnings at higher interest rate environments, pe ratios do come down could it get to a 14 times

multiple sure, it could but those earnings are rising, and corporate america is doing pretty well. so, i don't see a huge dip but i do see the volatility with us for a while. given that we broke the average on friday, i would probably expect us to retest those lows and see if we can hold down there. i don't think this volatility is over, even though we're seeing green before the open this morning. >> michael, just 20 seconds this morning, the president plans to release the white house budgets over the day what do you expect the white house reaction to be with what president trump puts out >> i think the markets are so focused, the market is in a largely narcissistic moment and largely ignore the president's budget and stick to what's going on in the ten-year whatever the ten-year trosher is does, that's what the market is going to react to. >> michael farr, happy monday. >> happy monday to you, guys

that does it for "worldwide exchange" this morning stay tuned because "squawk box" has all the coverage >> have a great day. doing it yourself or tagging a friend thing. more revolutions in the making thing. that play like a girl thing. that four-legged friends thing. at&t gives you more for your thing. more entertainment, internet, and unlimited plans. more for your thing. yeah, that's our thing.

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good morning, green arrows this morning as the bulls try to battle back from the worst in two years. in washington, the trump administration set to release a budget and infrastructure plan we'll get a live report. plus, a developing story, the fire sale of the weinstein company hitting a road block as new york's attorney general files a lawsuit against the studio and its founders. it is monday, february 12th, 2018 and "squawk box" begins right now. ♪ ♪ one foot in front of the other ♪

>> announcer: live from new york, where business never sleeps, this is "squawk box. good morning, everybody. welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with joe kernin and andrew ross sorkin. let's take a look at the u.s. equity futures this morning because as joe mentioned we are talking about significant advantages with the dow futures indicated up about 300 points fair value right now the s&p 500 will open up by 31 points. nasdaq, up by 75 this all comes friday when the markets really turned things around at the end of the day, the dow was up by 330 points that was a gain of 500 points in 20 minutes that we saw coming back, erasing the losses even across the board a gain of 1% or better, it did bring us out of correction territory for the dow an