stocks pushing higher ahead of the gdp. grading powell, who global markets are reacting to the fed chair's first conference. and the deal amazon just made for doorbells it's february 28, 2018 "worldwide exchange" begins now. ♪ good morning very warm welcome to "worldwide exchange" on cnbc. i'm wilfred frost. let's get to the market picture.

we did have quite a significant selloff yesterday following a strong set of markets on monday, particularly the selling came in the afternoon as the likelihood of a fourth rate hike this year rose from 10% to 30% in terms of market probableabilities follow jay powell's testimony in congress it led to over a percent of decline force all three indices yesterday. the s&p up 10 points this morning, the dow up 100 points, and the nasdaq up 25 points. this will be the first negative month in ten for markets in february we have seen more plus or minus 1% moves in the s&p in all of 2017 this last trading day of february a reminder of that crazy return to volatility that we've seen the nasdaq down 1%, and we have

recoverednicely from those february 9th lows. let's look at the ten-year treasury note. yields rose a bit as jay powell spoke, but not too significantly given some of the hawkish interpretations that some people had. we are back babove 2.9% on the ten-year >> growth in china's manufacturing sector slowed more than expected in december, and markets are down a healthy amount this morning, over a percent for japan and hong kong, about a percent for hashanghai yes, there's been a rov ecoveryu not to the same level as in the united states. european trade for you, also bigger declines for month as a whole. germany down over 5% for the month. france and the uk down about 2%

to 3% for the month. and it's a soft session today, but only slightly, down about a tenth of a percent for germany investors will get a trio of economic reports the first revision of q4 gdp growth will be revise slightly slower to 2.5% from the previous reading at 2.6%. at 10:00, chicago pmi, pending home sales as for earnings, lowes and tjx are out before the bell. let's talk more about the day ahead. joining me is peter boockvar, ed did or editor of the boock report jay powell said his optimism about the economy has improved since december has yours done so?

>> i think that remains to be seen a lot of the economic data has been soft. home sales have been soft. auto sales weakened. retail sales have weakened industrial production has weakened i'm not as optimistic. q1 gdp estimates from the atlanta fed is down 2.6% it was 5.4% just more than a month ago. i'm optimistic in the sense of tax reform helping to boost economic growth. one other statistic, yesterday durable goods and capital spending was weaker than expected some what disappointing, but the inflation numbers will surprise to the upside, whether due to higher commodity prices, higher wage pressures beginning to give companies pricing power to pass it on. that's a real issue rather than a fast acceleration in economic growth >> given in the short things have not improved in the grand scheme of things, as you suggest things are still impressive, why

was fed chair jay powell yesterday so optimistic about growth, particularly given the volatility we've seen in the markets? wasn't it easier to play safe, be dovish and allow markets not to think there will be a fourth rate hike this year? >> i think he just reinforced definitely three rather than hinting at a possible fourth the market said maybe we will get two, maybe a third i think he just said, yes, we'll get three, rather than hinting at a fourth. i think he didn't want to rock the boat, certainly in his first testimony. could they raise four? yes. but i think based on the current data set, i think he just reinforced they want to do three. >> mentioned gdp what are you expecting today >> still around the 2.5% level hopefully we can grow frast fasr this year. i don't think we'll get to three

on a sustainable basis 2.5% is still better than 2. >> we are likely to see a strong dollar for the month as we get to the end of it up about 1.4% for february remind us where you sit in terms of what to expect for the year ahead for the dollar >> i'm still a secular bear on the dollar the bounce we've seen in february is coming off a pretty weak period. i think the dollar will still be challenged, whether it's growing u.s. budget deficits and debt, whether it's the trade deficit that is increasing, whether it's better opportunities outside of the u.s. in terms of investments, i still expect a weaker dollar as the year progresses >> let's touch on bond yields. i was at the jpmorgan investor day yesterday, and they were relaxed about the rising interest rates are having on underlying corporate and consumer clients it's caused volatility in markets, but what is your view

about the key levels that hurt consumers again and corporates >> we might see it in housing. mortgage applications to buy a home have fallen new home sales disappointed in january. mortgage rates are at the highest level since 2014 can't get more interest rate sensitive than housing autos as well. on a margin, it may have an effect but in terms of borrowing, many companies borrow libor plus, and that goes up on a daily basis. very low on an absolute basis. but the rate of change is notable. >> balance sheets are strong, a lot of companies sorted this out already? >> a lot of cash on corporate balance sheets is confined to the top 20 tech stocks on a broad basis, corporate leverage relative to cash flow is at record highs >> peter, pleasure to see you.

amazon is buying smart doorbell maker ring for $1 billion. landon dowdy has more on that story. >> good morning. amazon disrupting again. the home security market this time they are buying ring the deal allows it to expand in security and in-house delivery service. f reuters reports the deal could be worth $1 billion amazon has been making moves into the home security space partnering with qwikset and bling. previously amazon invested in ring through the alexa fund. ring was last valued at 7$760 million according to pitch book. shares of adt reacting on the news of that off about 1.5%

amazon is flat in early trading. astrazeneca is spinning off six early stage experimental drugs into a new 2$250 million stand-alone biotech company. the firm will focus on severe auto immune diseases the spinoff is the latest move to shed the noncore development work to focus on priorities in cancer it's up 0.4% the fda has rejected celgene's after plycation f application for a drug to help multiple sclerosis becoooking holdings got a bs from a rise in reservations and strong performance from its international business the ceo of booking holdings will be on "squawk box" at 7:40. the ceo of the highly secretive startup palantea is sitting down for an interview with cnbc.

he's talking everything from corporate clients to the ipo plans. here is some of his interview with josh lipton >> maybe i'm just going back to my old philosophical days. what made this company special is not that we're secretive, not that we're enterprise software, but we've been focused on fighting terrorism with data protection we're recently focused on as well on innovation with jobs why should we care well, because if you don't have jobs, you won't have democracy i think -- obviously we were born in silicon valley, we're of silicon valley but this movement of innovation with no jobs is hurting our society. >> you can catch josh's full interview with palantir's ceo alex karp at 11:00 a.m. eastern time. still ahead, the top stories and a round up of the globel

market picture we'll break down what's driving down the greenback straight ahead. and papa john's and the nfl are calling it quits why the sponsorship deal is over "worldwide exchange" back in a couple that voya is with me through retirement, i'm just surprised it means in my kitchen. so, that means no breakfast? voya. helping you to and through retirement.

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out of china and japan but not just today's decline to keep in mind we had a big bounce backe in i u.s. from february 9th lows, but asia will be down depending on which market you look at. in europe, big declines for february as well germany down more than 5%. the uk and france more similar to the returns of the s&p. down about 2% and 3% for the month. today europe holding up much better than asia futures in the u.s., up about 100 points the nasdaq up 24 the s&p up 9 for the month of the whole, down

2.8% down 1% for the nasdaq we had eurozone cpi at 1.2%, versus january's 1 opini.3%. inflation dropping and moving away from the targeted 2%. papa john's reporting a bigger than expected drop in same-store sales in the fourth quarter. the company is also ending its sponsorship deal with the nfl. that relationship became strained last year when papa john's founder blamed slowing sales on the national anthem protest by nfl players weight watchers latest results beating forecasts helped by the launch of a new dieting plan in december the outlook for this year is also above analysts estimates. up 7.7%.

and the ceo mindy grossman will be on "squawk box" today at 6:50 a.m. etsy's earnings and revenue topping forecast total merchandise sales came in above $1 billion for the first time ever. the online crafting marketplace is offering an upbeat full-year revenue forecast up 15% josh silverman will be on "squawk box" at 6:30 eastern time let's check in on currencies the dollar is showing a little bit of weakness against the yen and a little bit of strength against the your euro and pound returns for the month up 1.4% before today bucking that trend of weakness that we saw for last year. joining me now is kit juckes from socgen. thank you very much for joining us starting point would be that broad eer trend for february. do you expect that to continue for the rest of the year

>> we could have another strong month. i don't think we'll get the weakness at the pace we had in january or in the second half of last year. i do think the dollar broadly speaking has peaked and we'll be drifting lower unless we get a huge surprise with both the strength of the economy in the u.s. and particularly in the destination of where interest rates are headed i'm less worried about how fast they go up than where they'll finally settle >> clearly yesterday we had a strong day for the dollar, up 0.6% for the broader dollar index. largely you would say that relates to interest rates and where they're heading, because fed chair jay powell's testimony suggesting there may be a few more than expected >> a few more than expected this year the big debate is about where they perceive the long-term destination for policy to be is that going to be 2.0 or something higher because of fiscal policy. my sense is that we could get four rate hikes if the equity

market does all right because the economy is growing reasonably well. if equities wobble or if we do see what we're seeing in the global economy, a little bit of softness coming through the second quarter in economic activity, i think that number is variable the fed will be reactive to the environment they're in but the bigger issue is the markets are looking and saying the peak in u.s. rates will be 2 point something at some point down the road. the next big story is that the european central bank will end bond buying this year, start raising rates next year. the bank of japan will in due course have to get back to policy normalization those are bigger stories that the foreign exchange market is looking at i don't think the market will stop looking further out yet >> kit, talk to me about the euro briefly crossed 1.25, but has since fallen back. in the low 1.22s at the moment

what's your view for the rest of the year, particularly in light of that inflation data this morning which slipped a bit. >> yeah. the call is not slipping i think the ecb is on track to continue with its bond buying program until late this year there's no reason to look for a rate hike until the middle of next year. so the question all along has been how far the market looks down the road. fair value for euro/dollar more like 1.30 than 1.20. so the kind of easy conviction of saying if the ecb will normalize policy we should be buying euro/dollar at 1.05, 1.15, 1.20 is behind us. i think we'll get to 1.30 by the end of this year then it will depend on what's going on next year i think it will be slow. i wouldn't invest all my life savings in saying 122.09 this

morning. let's have a go. we could drop further. the uptrend is there the economy is in good shape even if inflation remains mild, this doesn't look like an economy that needs negative interest rates and huge bond buying >> how much of a swing factor is the upcoming italian election? >> it's a swing factor if it surprises us a small positive if nothing happens in the sense we get a coalition government that delivers no significant change we have the german vote from the spd on a grand coalition at the same time. nobody is expecting a shock. if you got a bad outcome out of either of those, you would get a reacti reaction what they've done is dampen down volatility this week as people are wait and see rather than do anything else. everybody is expecting muddle through on european politics, because that's what happens. >> kit, thank you very much. kit juckes of socgen. still ahead on "worldwide exchange," we're going global. the best places to put your

money overseas later, ringing up profits. more on amazon's big bet on doorbells. the details when "worldwide exchange" rerntus.

welcome back to washington. president trump is meeting with a group of bipartisan lawmakers today at the white house to discuss gun control. tracie potts joining us with more >> we have a lot to talk about there's so many ideas floating

around capitol hill, different pieces of legislation, different parts of gun control what's likely to dominate the discussion today is that very weapon used at stowman douglas high school. the ar-15 that killed 17 students and teachers in florida. today at the white house lawmakers will talk about raising the age limit to buy this weapon from 18 to 21. another option, a time out ban sales for 90 days. >> a temporary ban of 90 days. >> i would support that. >> reporter: there's bipartisan support for training schools to recognize warning signs. >> the best way to keep our student the and teachers safe is to prevent violence from entering the school in the first place. >> reporter: but expanding background checks, that's stuck in the senate with opposition from both sides. >> we hope for the sake of millions of kids who attend

school every day, that our republican colleagues will buck the nra and do the right things. >> reporter: bump stocks make regular rivals fire like the ar-15. the white house says president trump will support congress banning that device if he can't. the justice department is working on that. today pressure on lawmakers to act. >> this is a very different moment the spub public is demanding rel action. >> reporter: prompted of stories of survival brought to washington senate votes could start address early as this week >> tracie potts, thank you very much for that. now let's check what's happening outside the world of business francis rivera is in new york with the latest news update. good morning >> good morning. federal authorities are investigating a hazmat incident that left 1 people sick at a virginia military base an officer at join

henderson ham ophall opened an envelope with an unknown substance. three people were taken to the hospital and are in stable condition. classes in west virginia are back in school after an agreement was reached in the massive teachers skr s strike t kept all schools closed for five days and former president bill clinton joined thousands of mourners in north carolina to pay respects to the late billy graham who died last week at the age of 99. he will lie in honor at the u.s. capitol rotunda for the next two days back on over to you. >> thank you very much for that. still ahead on "worldwide exchange," the top headlines and a round up of the global market action and a happy reunion disney and mcdonald's teaming up for the first time in more than a decade it has the wholentne iert

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stocks pushing higher following yesterday's late day selloff. going global where you can find the best opportunities for your money overseas and sky high expectations. new reaction to the bid from comcast for sky coming up. it's wednesday, february 28, 2018, you're watching "worldwide exchange" on cnbc.

good morning warm welcome to "worldwide exchange" on cnbc. i'm wilfred frost. let's check in on global markets this morning, which are pointing higher for the u.s up about 90 points on the dow. s&p up 8.5 the nasdaq up 22 points. yesterday we saw more than 1% of declines for all three indices that came as expectations for fed rate hikes did tick up following jay powell's testimony in front of congress for the month of february, we are down 2.8% for the dow and s&p. 1% down for the nasdaq significantly recovered from the february 9th lows. 10 out of 11 s&p sectors for the month. tech the only positive one ten-year treasury note ticked up yesterday, still below the highs of early last week of 2.92

2.901% this morning. week data out of china and japan this morning growth in china's manufacturing sector slowed more than expected in february. down 1.5% for the nikkei shanghai down a percent. for the month of february, declines in asian markets much more severe than the u.s 7% or 8% of declines for those three main asian markets european trade is slightly negative holding up much better than asia down 0.3%, 0.4%. while germany's down 5% for the month of february, france and the uk down 2% or 3% tim seymour joins me this morning. good morning >> good to be here >> great to have you on set for "worldwide exchange. >> this is the place to be >> certainly is. let's talk about yesterday's trade. another volatile session

month of february will have more 1% plus or minus moves than all of 2017 as a whole does that continue throughout the rest of the year >> there's no question that powell injected more uncertainty in the markets yesterday if nothing else just by saying i really don't know where fiscal policy will take inflation he potentially separated himself from the rest of the fed or the doves by saying in my opinion inflation forces could be higher in the data i'm seeing so he gave us a message that with you different it's hard to nail down the fed chairman on his first major public appearance. >> does interest rate expectations impact equities again next time they rise? clearly it caused a scare in early february, saw that selloff. we have recovered now. it's not yields have fallen dramatically they just sort of stopped rising is investor psyche more prepared

for these rising rates >> if we stay in the next 1015 basis points or 3.25 on the ten-year, i think 3% is important, a technically important level. the bigger question for me is for a bigger and more dramatic move it's usually the size of the move, more than the swiftness of that move. so what concerns me is that the ecb is very much behind the curve. we had inflation data out of the eu this morning, which is more or less in line, but rates in the u.s. will go significantly higher the moment the ecb signals something different than what they've been doing. i think draghi is reluctant to do that. as i think about the big picture, yes, investors have an opportunity to know we're in quantitative tapering, that the fed will hike three, four times this year, three, four times next year, but i don't think the

markets are positioned north of 3% ten-year volatility that stays hinged more to a 15 or 16 level. that puts a different level on equities >> when we talk about the rebound from the february 9th low. it's been pronounced in tech stocks for the month of february, tech is the only sector that is positive is that overdone or is that the sector with core earnings growth that can continue to perform >> think about how the balance sheets of these tech companies also look, and they are very, very well positioned for an environment where possibly conditions get tighter overall they have the type of growth they should be -- the reason rates are going high ser becaer because the world is a better place. some tech companies are seeing businesses grow. leaving amazon and netflix aside if you look at google, apple,

facebook, those are places where valuations are acceptable and where there's massive capacity people can put to work the fact that tech has been defensive and outperformed doesn't surprise me. the more interesting dynamic, you brought this as we led into the show, global markets have not recovered the same way that u.s. markets have. that's interesting you can make an argument that eps growth looks better in europe, better in japan than here >> does that mean you're buying some of those overseas equities? do you like the chinese markets down 8% or 9% for february >> it's interesting. the growth dynamics, the growth differential support that em should continue to outperform. as goes china and as goes em 20-month lows on pmis don't concern me i do think as i look around the world, the opportunities to combine better fundamentals, a fact you have this global synchronized recovery, i would rather be investing in europe now especially at a time when

the euro priced good news in >> tim, good stuff let's drill down on one part of the market struggling this year, consumer staples landon dowdy has sectornomics. >> consumer staples have had a tough run this year. the sector is down 5% compared to the overall s&p, up more than 2% so what staples might be a good idea to stock up on? these are the winners and losers in the sector so far dr. pepper and snapple popping 19% largely thanks to the planned merger with keurig and all of the positives like strong travel retail business and growth in china. archer daniels up 3% on the back of an earnings beat and upbeat outlook. some other staples struggling, hershey's, down about 13.5% on gross margin pressure.

adding to that, growing pressure from china clorox, down 12 p. craft heinz also off 12% as cost synergies slowing last year. back over to you >> thank you very much for that. >> let's discuss consumer staples. there was due a big rebound last year and early this year has it had that rebound and faces structural headwinds >> that's the call you could make the call that there's secular headwinds, too procter gamble and unilever need to be worried about alexa. staples to me in an environment where the consumer is better and maybe price pressure have more of a tailwind. the staples basket has been under pressure that's one reason why i think i look at walmart and target as much as walmart started to

differentiate themselves in terms of e-commerce strategy, i think staples remains challenged there's a lot of competition and pri price pressure >> is it still an attractive purchase, and again amazon made a billion dollar acquisition of a doorbell company >> they will revolutionize doorbells. we expect them to. this is the point with amazon. very difficult to bet against amazon long-term very difficult to -- in any way reconcile valuation that sits where amazon's is. people believe they are going to be the wrecking ball for any sector that they enter i think on some level amazon will get to a place where the bigger picture for amazon is deregulation i'm kind of surprised this company doesn't get mentioned more they're executing on all cylinders. the trade in amazon now looks to be intact.

putting new capital to work in amazon tomorrow, after this run and in this tape, i don't need to run anymore >> tim, thanks for joining us. booking holdings reporting better than expected sales in the fourth quarter the travel company got a boost in rise in reservations. the ceo of booking holdings will be on "squawk box" at 7:40 today. weight watchers latest results beating forecasts helped by the launch of a flu dnew die plan in december and the ceo mindy grossman will be on "squawk box" today at 6:50 a.m. etsy's earnings and revenue topping forecast total merchandise sales came in above $1 billion for the first time ever. the online crafting marketplace is offering an upbeat full-year revenue forecast it's up 15%. josh silverman will be on "squawk box" at 6:30 eastern

time a busy action packed show. one not to miss coming up after "worldwide exchange. still ahead on "worldwide exchange," spice up your wedding. former spice girls dropping huge hints that fans -- that have got fans excited for the royal wedding. details of that coming up. and amazon's billion dollar bet. everything you need to know about the company's second biggest acquisition ever first the weather forecast from nbc's bill karins. watching round one of rain moving through tennessee and northern portions of alabama and georgia. round two will be later today. we have the flash flood watches from northeast texas through tennessee. now into southern portions of kentucky and the appalachians. 12 million people at risk of flash flooding isolated spots could pick up to five inches of rain. with the storms, we could get

large hail, damaging winds i don't think we'll deal with many tornados. the forecast today, enjoy the calm weather on the eastern seaboard while you have it rain moves in late thursday. friday we'll deal with that nor'easter type storm with a lot of wind, coastal flooding and heavy rain in the big cities if you have airport travel plans on friday, keep that in mine could be significant dayels. that's your business travel forecast more "worldwide exchange" when we come back

welcome back to "worldwide exchange." i'm wilfred frost. time for the top trending stories. disney is partnering with mcdonald's on the happy meal toys for the first time in over a decade the brands parted ways years ago over disney's concerns about being linked to fast food during a time when childhood obesity rates were on the rise mcdonald's recently decided to make happy meals healthier i used to like a happy meal as a kid. abc has ordered eight additional episodes of alec baldwin's hour-long show

"sundays with alec baldwin." abc will air a version of the pilot immediately following the oscars on sunday the first will treat picture jerry seinfeld and kate mckinnen >> mel b let it slip on "the real" that the spice girls will be attending the royal reading and when asked if they would perform, she nodded, and then said forget she said anything. a good choice for harry and meghan amazon is making a big bet on doorbells with its $1 billion acquisition of ring. jon fortt joins the trending discussion from the mobile world congress in barcelona with more on that story. good morning, jon. yeah this makes a lot of sense from amazon's perspective you think about what ring is and

what it's doing. right now they're known for having this video doorbell where you can see who's arriving at your home. they also have a flood light camera that can show your driveway amazon has amazon key where they want to deliver packages into your house well, if they're going to do that, you want to have a certain level of trust with them this product could help with that also ring has started this ring neighborhoods initiative like a neighborhood watch enabled by their technology. if you think about the power amazon will have to see what's happening, not just in the home, not just directly outside the home, but in whole neighborhoods, this is an interesting move for them to mak make >> let's switch focus now -- sorry, we lost our mike briefly. let's switch focus clearly lots of tech and media

names at mobile world congress what is their take on comcast's bid for sky yesterday? >> it's been quite a bit of the buzz here ray loalong with 5g. i caught up with the chairman of content at vivendi he said given what's going on in general in the telco space and when it comes to international, this makes strategic sense >> we know that domestic markets seem to be saturated, look at new players like netflix their international growth is much bigger than domestic growth it makes sense to try to use that money for m&a outside of america. i feel europe is back with very nice organic growth and development opportunities. >> i did mention 5g? it's all the talk here it's the technology.

it just won't make things a little bit faster, it could make connections a lot faster built into the standard is less latency. stuff like video will start immediately. he also talked about that and how that will turn wireless operators into broadcasters. >> you will spend more time watching video on your mobile screen than ever it's already the first screen. that experience plus alternative reality, virtual reality, all the sophisticated way of interact i interacting will be available like that. >> remember at&t's chief technology officer is here giving more detail on the three cities where at&t is launching 5g at the end of this year dallas, atlanta and wakeco dallas that's because where at&t is based

waco, because it's a suburban rural area, and atlanta because it's the site of the next super bowl back to you. >> great stuff excellent coverage from mobile world congress in barcelona. still ahead, stocks falling for the first time in four days following comments from the fed chair. what to expect in the markets coming up. as we head out, another check of futures or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember.

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oh good, you're awake! finally. you're still here? come on, denise. we're voya! we stay with you to and through retirement... with solutions to help provide income throughout. i get that voya is with me through retirement, i'm just surprised it means in my kitchen. oh. so, that means no breakfast? i said there might be breakfast. i was really looking forward to breakfast. i know... voya. helping you to and through retirement. welcome back to "worldwide exchange." futures pointing higher. yesterday we were down more than 1% for all three indices today higher by 63 points on the dow. it was up by as much as 100 at the start of the show. the s&p up 6 points, the nasdaq up 16. we're down for 2.82.8% for the

nasdaq and the ds&p for the month. as we look and see that we're down just down on the nasdaq as a whole, we see how quick markets have rebounded do you think they've rebounded too quickly, jurrien >> i think we got almost 12% on an intraday basis over nine days usually you get a v-shaped bottom and the move up is about as sharp as the move down. you hit resistance and that's where we are we hit the 50-day moving average, and at this point the market, if history is any guide, should start to run into a bit of a wall and kind of stagnate

for a few months and then maybe retest the lows. normally you get the v and the chop i suspect we'll be in the chop for a while, especially address the fed seems to be hinting that it's going to be moving the goalposts in terms of what the market has been pricing in for the fed. >> what is your take in terms of jay powell's testimony yesterday. do you think we're set for four hikes this year? >> yeah. the way i look at it is more how many hikes over the next two years. whether there's three in '18 or four it's important but not the most important thing. really what is the whole cycle going to look like how many hikes will there be for the cycle? where will the fed end up in terms of terminal rate it's ironic because last august the market was completely on the wrong foot pricing in only one more rate hike for the next two years. one hike as of last august

now the market has caught up pricing in five hikes for the next two years, which is still shy of the fed's sort of six hikes that is suggested by the dot plot just as the market reprices itself, the fed sort of is hinting at moving the goalposts. so i think four is entirely plausible for 18 it's how many there are in total. if you add up the ones we've already had, which is five hikes, the six more that have been signaled, you are at 11 hikes for the entire fed cycle the market is not far off from that if we remain in that general ballpark, i think we'll be okay. >> your views on the data out of the rest of the world this morning, disappointments for japan and china, some inflation out of europe that was kind of in line with expectations. a slight decline from january. >> i think the big news is really china i think it's too early to make

conclusions about whether the economy is really slowing in an aggressive way there china started this global reflation party in 2016 when it infused new credit into its economy, as a result the global economy. it's been able to keep the foot on the gas pedal at a pretty good clip over the last two years. now there's clearly some evidence that there's some softening. you can see it in the pmis, you see the chinese government sort of going after some of the shadow lending how they maintain that growth rate, and how much they will allow it to slow will be an important factor going forward for the overall global earnings picture. when you look at the -- if you look at the pmis, the high frequency economic indicators, you can see they're peaking here, which doesn't mean the economy is peaking but the rate of change is typically that's when the market

goes from straight up to more sidewa sideways, and i think that correction makes sense in that context. >> thank you very much for joining me about a minute left. s first revision to the q4 gdp is out today. keep an eye on earnings. and don't miss josh lipton's full interview with palantir's ceo alex karp today at 11:00 a.m. that's not one to miss as we go, let's check in on markets. futures pointing higher but not as high as we were at the start of the show. we were up 100 at the start of the show, dow up 62 points now s&p up 5 points. nasdaq up 16 points, this final

trading day of february, we're down about 2.8% for the dow and s&p. nasdaq down about 1% "squawk box" is next

good morning stocks bouncing back a little after yesterday's fed fueled selloff. we'll tell you what to expect for today. there's news every day that moves these things it's a gdp print we'll see. ceos talk to squawk. we'll bring you earnings reports from etsy, weight watchers and booking holdings you'll recognize who that is once andrew conducts that interview. i had to figure that out i think it's priceline we don't have shatner. first on cnbc interviews with the chief executives. and amazon reportedly paying $1 billion for smart doorbell

company ring also a scary movie "the ring." we'll break down the action with ed lee he's actually going to be here it's wednesday, february 28, 2018 "squawk box" begins right now. ♪ live from new york where business never sleeps, this is "squawk box. good morning, everybody. welcome to "squawk box" on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. let's look at u.s. equity futures. we're off the highs of the morning. the dow futures indicated up by 70 points. the s&p up by 6. the nasdaq up 17 yesterday the dow gave but 300 points, that came after a day of 40