here are the five things you need to know right now wall street pointing to a higher open fears of an all-out trade war ease a bit we'll show you how stocks are trading. facebook upping the number of people likely impacted in the growing data scandal mark zuckerberg addressing the breach last night. now delta and sears say they have both been hit by a data breach the house drafting legislation to make the most recent tax cuts permanent. what that means for your paycheck. and would you please pass the kibble smuckers making a nearly $2

billion bet on dog food. it's thursday, april 5 "worldwide exchange" begins right now. ♪ we are working it's 5:00 a.m. what would a morning be like without getty lee and friends. i'm brian sullivan thanks for watching. here's how your money and the global markets are shaping up following yesterday's incredible turnaround stock futures indicating a higher open. the dow implied up just over 100 points the bond market not moving much. the ten-year yield about 2.76% let's go worldwide it was a relatively quiet session in asia. markets in china and hong kong were closed. japan, australia, korea posting gains on the back of our late day move higher.

overseas, a similar story. green on the screen. the dax is the big winner up 1.7% all the major indexes up more than 1%. here's a global look at commodities and currencies oil up a few cents overseas. the euro/dollar at 1.22. gold down to 1,329 an ounce. the crypto world is one to watch. things looking more difficult there. bitcoin back below 7,000 6,865. we'll see if that weighs on stocks when we came on air this time yesterday, seems like a day ago, dow futures were pointing to a 400-point drop. fears of a trade war were weighing on the market, then the larry lift our old colleague, now white house chief mieconomic adviser larry kudlow spoke to reporters outside of the white house and calmed fears saying at his core,

president trump is a free trader basically everybody calm down. that's when the market did that and staged a comeback, eventually turning positive. in all the dow turned around 760 points from the lows to finish higher by 230. joining us now is guy adami. thanks for joining us this morning. it's early help us understand the incredible turnaround we had yesterday. >> or the kud-low. see where i went the market continues to hold levels on the s&p in a 2580 give or take. those are big technical levels i think the facebook news, i think the tariff news, i think they're all non-starters i think they're trying to take our eye off the ball if you look, brian, the volatility in this market

started on a friday about a month ago. we had a big jobs number we also had a big wage growth number that's when the market got scared that the fed was going to insert itself in the conversation i would say to you, friday is a day we have to watch if you get a wage growth number that is strong this friday, i think we're right back to levels we saw early yesterday morning >> let me flip that script a bit if i might >> flip it >> we have steve liesman coming on in a few minutes. if the market does continue to see this kind of volatility, and if trade war fears increase, is there a powell put is there a chance that the federal reserve would dial back its rate hike expectations this year, thus perhaps adding a floor or a lift to the equity markets? >> you hosted "fast money" about two months ago or so, and you said something i never heard before you said the market likes to test new fed chairs you were so right.

the day he started was the day this volatility started. i would say to you that if the fed says, you know what, we'll ratchet back this year, i think the market would take that as a warning sign what does the fed see that the market doesn't see though it worked for the last seven years, i think the market might say now wait a second, maybe the economy is not as strong as we think, maybe the market wouldnshouldn't be here. my pushback would be, i'm not sure we have that scenario anymore. >> remember that '60s song, the blues run the game >> whoa. whoa no, i don't. who sings that song? >> great folk song who runs the market now? you don't believe it's facebook. is it president trump with either trade or amazon is it jay powell and the federal reserve or something we have not talked about yet >> it's something we have not talked about i believe the fact that the

market has been so complacent and that complacency found its way into derivative books playing volatility on the short side that's the hidden fear to me i think you'll see continued heightened volatility and i think there's a derivatives book out there, in my opinion, that is on the verge of blowing up. i don't think you have to look much further than a large bank in germany, sort of looking foreground zero. deutsche bank has not traded well now for the last few years. i really think there's something going on there that might be the canary in the coal mine. if i'm hearing you right, guy -- >> you are hearing me right. >> with these ears i don't miss much two months ago we talked about the vix, the crazy options, volatility trades. i know you, tim seymour, i an others disagreed on how important they were. sounds like you believe the crazy underlying volatility

trade is not out of the picture yet. >> i don't think you can cure six years of complacency with three weeks of market turmoil. it's much deeper than that i think the last couple weeks havessuaged some of those fears, but the concern is still there. if you see again, it started on a friday when you saw wage growth i think if you see that again this friday, it could all return we'll see. that's what makes markets. you know >> it is used to be, guy, bad news was good news because bad news meant the federal reserve would remain accommodative. if tomorrow's monthly payroll number comes in hot, comes in strong, is that officially -- is good news bad news >> i think it very well might be we flipped that switch where i believe good news in the form of wage growth, which puts the fed firmly back in play is bad news for the market

if you would like to chat tomorrow, i'm more than happy to do it. that's what we're seeing that's the environment we find ourselves in >> it's good news when you are willing to get up this early for us and global viewership good news, guy appreciate it. >> love you, buddy things may have calmed down for now. trade fears remain the top of mind for many investors. if you believe that we are headed for some kind of trade fight or a trade war, what should you do with your money? let's get some answers with peter oppenheimer from goldman sachs joining us from london we appreciate it here stateside. you have done some smart, deep work on where to invest in the event of a trade fight where do we go >> good morning, brian thank you for having me. i think the issue really, if you get a growing trade fight, is that you're in a sense getting more uncertainty about growth. it follows on from your previous

conversation my own view is that the markets can adapt to higher interest rates more than they can adapt to slowing growth at this stage. i think stronger data coming back will be quite good for the market and if these trade concerns moderate a bit, i think we'll be back to still a higher volatility environment than we were seeing last year, but one with a steady rise in equity prices of course, you know, in an environment where trade is becoming a central issue and concerns are deepening about a growing global trade war, equities are not a good place to be cyclicals and global trade areas of the markets and emerging markets that are more exposed to world trade are likely to be in a tougher position i think that global growth is still quite strong that's the central driver of these markets. >> let's stick with u.s. equities you didn't disagree with guy

adami, who we just had on. why do you believe the u.s. stock market is strong enough to withstand, "a," either hotter data or "b," higher interest rates? >> first of all, we're starting at an incredibly low level of interest rates the impact of rising rates on equities depends on a host of factors. whether the adjustment is in terms of nominal rates or real rates. our feeling is essentially rates are rising because the economic cycle is likely to extend. we are look at global growth a little over 4%, 4% next year that would make it the longest post-war economic recovery equity markets tend to go up while economies are growing. they may go up at a slower rate than we've been enjoying the last year when interest rates were low and stable, but i think you're not likely to get a sustained downturn in the equity market unless there's a fear

that this economic cycle is turning down and we're approaching a recession. we think that risk is still quite low. >> but as optimistic as you are, peter, you do believe elsewhere in the world the emerging markets are a better deal. it's a big world out there what are the better places for our viewers to invest money in now? >> right to me this is all a relative story. we still think that equities are a better place to be relatively compared to government bonds or credit we think other equity markets around the world are a better place to be than the u.s the u.s. equity market enjoyed a record period of outperformance, really since the start of the financial crisis it's enjoyed that partly because the u.s. economy was more successful in recovering and so, too, were u.s. profits partly also because of the extraordinary contribution to the u.s. market from world are recovering, are doing

quite well economically. profits are finally recovering and the leadership of the technology sector, which is more dominant in the u.s. market perhaps is fading a bit. when you take these things into consideration and also the likelihood of still a weak dollar, other equity markets are likely on balance to outperform. >> quickly, would your viewpoint change if these tariffs are implemented? would you have to change your thesis >> if the tariffs we're told about so far are implemented, i think they still have a relatively small direct effect on global growth or indeed the u.s. economy i don't think it would change things in any dramatic way i think, of course, the tensions we're seeing in the last few weeks result from growing anxiety about where growth is

going partly because of the technology sector and we've seen some signs that global growth is slowing a bit. and then the concern about where these trade negotiations end up. is it a broad war where many parts of the world are dragged in, and you get an increase in overall tariffs, we think that's unlikely if you do get that and global growth moderates, we're in a different environment from the one we see as the most likely central case which is an extension of this economic recovery still positive returns in equities, but lower risk adjusted returns than we were seeing last year >> peter oppenheimer of goldman sachs, appreciate your insight thank you. >> thank you a news alert german chancellor angela merkel plans to visit president trump on april 27th. this news according to germany's build newspaper. we'll bring you more as we get

it turning back to trade. more reaction from the china side of the trade story as fears of a backlash on u.s. products grows. eunice yoon is live in beijing with more on this. >> if your only source of news was the chinese state media, you would probably think beijing just bested the trump administration that's because in the official papers today they're all saying that china just won the first battle in the u.s./china trade war. the papers have been focusing on the quote that president trump tweeted in which he said we are not in a trade war with china. also they have been quoting commerce secretary wilbur ross's interview on cnbc where he said all of the action is leading to negotiations now, just a couple hours ago the peoples daily posted a commentary bragging that china's tariffs have hit trump where it hurts. and they said beijing's quick

counterattack caught the americans off guard. the china daily which is another state paper ran an editorial earlier saying that the u.s.'s crime down shows china can't be coerced. the background of all of this, trump's action is filtering into chinese domestic politics. as we talked about before, the communist party as well as president xi jinping have been trying to characterize themselves as a defender of chinese national interests they're the ones who will showcase china's power on the world stage. so they've been projecting this image in the state press to the public and can't really be seen as backing down. but, brian, all is not lost because according to the official state media the china daily said today if the trump administration is open for negotiations then it's time for trump to give up the useless tariff weapon and come to the negotiating table. so, in other words, the door is

still open >> the table is hot. eunice yoon, thank you very much so much more to do this morning. on deck, facebook under fire as they up the number of people impacted in their data scandal. and later, we'll call it a trade triple play. how tariff talk is impacting er, engythe market and the fed "worldwide exchange" back in two. just another day on the farm. or is it? this farmer's morning starts in outer space. where satellites feed infrared images of his land into a system built with ai.

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here's how your big tech stocks, known as some as the f.a.n.g. stocks are trading facebook up 2% in the early premarket trade. amazon, netflix and google's alphabet are all higher. julia boorstin is in from the west coast she has more details on the increasing information scandal and numbers around this facebook story. >> yesterday facebook saying as many as 87 million people may have been affected by this cambridge analytica scandal. and despite that big number, facebook shares rose in after-hours trading yesterday as mark zuckerberg took journalist questions about data policies and the fallout of the cambridge analytica scandal. zuckerberg says he's the right person to run the company but warns they will always have to stay ahead of the security issue because it will always be a threat >> never fully solve security. it's an arms race.

in retrospec we were behind and we didn't invest enough of it up front we had thousands working on security but nowhere near the 20,000 we are going to have by the end of this year i'm confident we are making progress against these adversaries but they were very sophisticated. >> zuckerberg saying the company has not seen implication of the scandal impacting ad revenue but they understand they need to ramp up security and better inform users about how facebook works. >> for some reason we haven' been able to kick this notion for years that people think we sell data to advertisers we don't that's not a thing we do it goes counter to our own incentives even -- you know, even if we wanted to do that it just wouldn't make sense for us to do that. >> of course facebook needs that ad revenue as it keeps on

hiring, it has a target of 20,000 employees at the end of the year focused on security the data issues >> let's clear this up i think mark zuckerberg is being disingenuous there that's factually accurate, but data with advertisers is there -- the data is their product. >> they're using data for advertisers to target you with an ad that's going to be interesting and valuable and useful to you. but they're not harvesting data and creating and selling the brian sullivan profile to someone else so they can do something else with it >> but they use it a lot >> they use data internally but don't provide your data to advertisers. that's their distinction they say we protect your data. the issue here with the cambridge analytica scandal is that an app developer illegally sold data that they collected legally. the app developer could collect all this data legally. they changed the rules now >> i say you can borrow my

chainsaw -- the data is legal for them to share. >> no, the data is not legal -- this is all about the fact that before april 2014, facebook had much more lenient rules about data collection than after april 2014 before then, app developers could collect data not only on the people who got their app but also about their friends the app developer collected that data illegally and then sold it. >> if i say do you want to go sailing, i suddenly get sailing ads. when we hit agree to that privacy thing, we sign away a lot. >> they think you'll be happier

to see an ad if it's relevant to what you're talking about. >> julia boorstin, thank you. coming up, more data hacks this time from an airline and a retailer and with a name like smuckers, it's got to be good. a deal that lltes us dog food may be the new goal. stick around

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stock futures indicating a higher open. the dow with an implied open of 86 coming off yesterday's 760-point amazing turnaround let's step outside the market force a second and get a check on what's happening outside the world of business. good morning u.s. troops are headed for the southern border after president trump signed a proclamation deploying the national guard to combat illegal immigration the white house says the troops will remain until congress takes the action necessary to close the loopholes undermining our border security efforts. and a pilot was killed after his f-16 falcon crashed. the cause of the crash is under investigation. the pilot's identity has not yet been revealed. and talk about a close encounter. a curious great white shark paid two australian police officers a surprise visit they were about to pull over a

boat for a randomlyzer test brian, back to you >> nothing curious about a great white shark except its curious ability to want to chomp your leg off. >> they'll need a bigger boat for sure wow. still ahead on "worldwide exchange," the house making a big move to make your tax cut permanent. later, why how much you pay to fill up your tank may be inpacted by any trade war with cha. we'll tie the two together coming up. and while we make more e-commerce deliveries to homes than anyone else in the country, we never forget... that your business is our business the united states postal service. priority: you

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you can call it a comeback why stocks continue to recover from yesterday's epic turnaround. powell's next move how the federal reserve plays into all this trade and tariff talk. and nike's big fix what the company is doing to try to clean up it's corporate culture. lace 'em up, the second half of "wex" kicks off now. ♪ thanks for being with us, i'm brian sullivan thanks for watching from wherever in the world you might be we are halfway through the 5:00 a.m. hour in new york. stock futures indicating that yesterday's turnaround in the afternoon will likely continue we're implied to open up about 80 points on the dow

the house drafting legislation to make the individual tax cuts permanent. the republican proposal also calls for a provision to allow businesses to fully deduct expenses immediately sources tell cnbc a vote on the bill could happen by tax day, which is april 17th. joining us now is economic policy analyst at the american enterprise institute, and cnbc's own john harwood john, april 17th, this vote, do you think the tax cuts will be made permanent or is there sufficient opposition to stop it >> the latter. i think this is a gesture by republicans. they're trying to run and protect their house majority on the basis of the tax cut they passed and i think trying to bring that top of mind is going to be their objective, even if it's not likely to make it all the way through the process. >> and the hold up here, concerns about deficits.

john, do you believe the republican party in some ways, it has maybe forgotten their concern about deficits which were on their mind in a great way a couple years ago >> no question about it. the imperative of getting a tax cut outweighed their concern about the deficit. this is a pattern we've seen, where both parties have some what selective concerns about the deficit, depending on whether they're in power or not or what policy changes are on the horizon. no republicans believe that cutting taxes and reducing the size of government is their foremost priority that's much more important in the minds of those legislators than reducing the deficit. we're now on a path to have a trillion dollar deficit indefinitely republicans would like to make the next item on the agenda reducing entitlements and reducing spending. the question is whether they'll have the opportunity to do that.

that's one thing this fall campaign will determine. >> speaking of deficits, the other side, why do you believe the president does seem a bit obsessed with the trade deficit? >> listen, he has been talking about trade deficits for 40 years. that is sort of the one metric that he thinks he understands. which he will use to judge any trade agreements which is the bad part it's a terrible way to judge trade agreements given the fact that reflects u.s. lack of savings, if that's how he's going to judge trade, then this trade conflict with china will escalate. our u.s. -- our total trade deficit picture won't change much it's fine to think harder about trade, theft of int lebt waelle property, but you have to have the right one, but that's the wrong one. >> stuff we make is being bought

and sold in china. do you think there's a real risk of a china backlash on u.s. products >> listen, it wouldn't be the first time where you have seen sort of this movement. it's happened with china and korea. if the government wants to create that backlash, they have the means and will if they want to do that on the other side, we buy a lot from them. i'll know the trump administration is serious about using tariffs when it applies to walmart. when walmart starts screaming, then you'll know they're serious. if trade tariffs are going to be the mechanism that the administration is going to use, then it's going to be more severe to get china to change its behavior >> it's an important point, john, that jimmy is making if you go through that long list of products subject to tariffs, a lot of them are minor things things we may not use.

it seems cursory in a way. does anybody you talk to believe that what president trump is doing is more barking than biting and trying to get china to the negotiating table it's a ploy? >> certainly the markets drew that conclusion yesterday after our former colleague, larry kudlow, came out and said these tariffs may never take effect. it's not clear what the president's ultimate objective is other than the fact on tariffs, like on the border, and on troops in syria where the president said i want them to come home and then yesterday the statement the administration put out did not indicate that, he's trying to appeal to his base and make them think he's doing the america first kind of actions that he promised in the campaign the problem is there's push back to those things, either by the military or by the border security or in the case of

china, what jimmy was talking about, the prospect of higher prices at walmart as well as reduced soybean exports by iowa farmers. you know, the president makes noise. he draws attention he highlights issues, but when it comes to the tomb immactual implementation and costs associated with that, he shrinks from that. that may be what's happening with trade >> john, moments ago the german newspaper build had a headline that angela merkel would visit president trump around mid-april. again, one headline. it is a german paper i don't know if you would know, is that a scheduled meeting or was this an impromptu thing? >> i don't know the details of that meeting i do know that merkel and trump have had a strained relationship we know macron is coming shortly to visit the president

but i can't say what's happening in that particular situation >> didn't mean to put you on the spot we just had this headline, and it seemed like it's new news have fun with it before we let you go if you were angela merkel, you sit down with the president, what would be the first question you would ask him on trade >> what's the end game here? what are we trying to do are we trying to create a concerted, allied kind of trade coalition to deal with intellectual property or will you go against allies, because you're worried about the ridiculous trade deficit issue what are you trying to accomplish >> come on, jimmy, you know the answer make america great again. >> and merkel wants to make germany great again. we'll see how the two sides play out. >> the sun will come up eventually, i promise. china's latest round of proposed tariffs, and they're still just proposed, could also weigh on the energy sector

how come let's find out with jackie deangelis. >> china is thinking about imposing tariffs on propane and ethanol. both of quantities, but china ia rising consumer. china takes less than 15% of our exports of propane companies that export propane, enterprise products, targa and fell lip phillips 66. on the ethanol side, china is looking to expand ethanol blending by 2020 now it's safe to assume they won't look to the u.s. for it. ethanol producers and exporters in the u.s. include valero and green plains renewable energy. crude oil is not on the list why not? the u.s. is exporting more and more that's because the oil market is bigger if china starts taking north sea oil that was going to korea,

japan and taiwan, those countries would just buy our oil instead. it wouldn't have the same effect what analysts think the energy tariffs are aimed at doing is hurting red state producers directly, that's where propane and ethanol comes from this is a punch right back where china is hoping it will hurt >> we're seeing that here, jackie put on your farmer's has the as well some the proposed tariffs were not just on oil and ethanol, a corn product, but soybeans as well things that are grown and produced in most of the counties and states that voted for the president. i think the chinese knew exactly what they were doing >> exactly they were targeted when they did it the soybean market took a 3% hit yesterday as a result. that's where we saw it the most in terms of markets. some traders said that move was oversold just like the equity market was oversold and rebounded. watch the commodity space closely.

things could shake out in the next couple of weeks differently than the initial knee-jerk reaction >> we certainly will jackie deangelis, thank you. coming up, nike's big fix. what the company is doing to clean up its corporate culture. first, here is your national weather forecast from bill karins good thursday morning to you. unfortunately more cold and more snow in the forecast now it's getting beyond ridiculous windchills this morning down to the 30s as far south as atlanta. it will be a chilly start at the masters today. look at this snow forecast we have two storms this first white arrow shows light snow later today and tomorrow into the great lakes. the second white arrow shows a snow event starting tomorrow in areas of the dakotas, heading out of wyoming and montana light snow possible in missouri. going friday night into saturday morning, steadier snows from

louisville, huntington and southern ohio. look as we go through the mountains of west virginia, northern virginia, around washington, d.c., baltimore, philadelphia, even new york, possibly some snow on your saturday not a huge snowstorm but beyond ridiculous the only spots that will be warm today, the desert southwest and atuth texas. th's your business travel forecast more "worldwide exchange" when we come back

5:43 in new york there's a live look at sometimes square i'll ruin your morning right now. that's what we like to do. bill karins, remember that weather forecast, it's supposed to snow again in new york city on saturday. take that in there's still time to book a flight stock futures are indicating something nicer, a higher open dow futures implied up by 80 points this follows yesterday's 760-point ferturnaround your big individual corporate and stock stories now include j mshg.m. smucker. they are buying ainsworth pet nutrition for nearly $2 billion smucker confirming reports it will explore the sale of its baking business. if you're a customer of

delta or sears, listen up. the two say customers payment information may have been exposed by another data breach, this time at a software security provider sears says fewer than 100,000 customers may have been affected delta said passport, sky miles information was not impacted. and carl icahn plans to nominate a board of directors who will push for a sale of oil and gas firm sand ridge energy icahn says he may make an offer himself. that ticker is sd. nike's human resources chief speaking out on the company's lack of diversity. eric chemi has more on this story. >> nike's human resources chief says the company has failed to gain traction in hiring and promoting women and minorities the announcement comes weeks after allegations of workplace misconduct led to a shakeup in

executive ranks. monique mathisen says nike wants to create a culture of true inclusion. she said our hiring and promotion decisions are not changing senior level representation as quickly as we wanted the memo says 29% of nike's vice presidents are women but the global work force is evenly split. in the united states, only 16% of vps are minorities. mathisen says they will have targeted training programs and the company will hold mandatory training for unconscious bias, or a preference for certain groups in hiring decisions last month ceo mark parker launched an investigation after compliance of inappropriate behavior in the same memo parker said the brand president would retire, though he was not linked to those complaints >> so this is a big -- i don't want to call it a shakeup, but a

push or a move nike reamize izrealizes they h problems >> what's interesting is they all did this from the inside with other companies, you hear about things from the outside. >> the external nudge. >> they didn't have an external nudge which is interesting they started this by saying they would change their leadership and then starting these programs in so many other cases it wuz not do -- was not done that way. give them some credit. >> nike is up there in northwestern oregon. >> yeah. >> they're not in the new york media spotlight. they deserve, i suppose, a bit of credit for doing this on their own. there is that implicit east coast time zone bias about company focus, i guess >> it's not like they're in silicon valley or los angeles. they're all by themselves in oregon in a way they have an

opportunity to set their own agenda without being pressured by media outlets they know they have a target on their back >> they know eric chemi is on the story. appreciate it. on deck, your all-america playbooks. why the domestic small caps may be the best safe haven for your money. we'll get more on that and some picks and your morning rbi when "worldwide exchange" comes right back

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stock futures have come off a bit. in a few minutes we have your morning rbi, the most random but interesting thing you may hear today. we think it's interesting. the bond yield on the ten-year, not doing a whom lole lot trading around 2.82%

we have the monthly jobs numbers tomorrow it was relatively quiet in asia. markets closed in hong kong and china. japan, korea posting gains those markets are higher outside of stocks, the global markets and xhod tcommodities, l with a slight move dollar is 1.226 on the euro side bitcoin is back below 7,000. we'll see if that weighs on stocks joining us now is steve cheverone, portfolio manager from federated i want to forget about the world. let's take the world oud t of "worldwide exchange. small caps these are domestic companies that tend to buy and sell stuff between states most of them don't export anything why do you think -- they held up better than big caps

why do you think small caps got caught up in the whirl wind of selling on the trade war talk? it didn't make sense to me >> it's a matter of sensitivity to economic growth if you get pessimistic about economic growth, these companies are more sensitive they held up much better than large caps this year >> 60 basis points >> but that's good they held up quite a bit better. >> do you think deserved to hold up better or is the thinking to your point if there is a trade war battle, consumers may pay more for certain products and therefore that would hit the purely domestic companies? or am i taking that way too far. >> tariffs a taxes, they hurt growth, make chi economies less

efficient, that's not good for anybody. >> what's the best part of the small cap story right now? is it simply the go old-fashioned story that america's economy despite all the headlines in d.c. and the stuff we read about what's happening in the beltway, outside of the east coast and -- things are good. >> very good there's a lot of things to like about small caps growth around 3% earnings growing 90% year over year that's a huge number m&a with the repatriation of capital coming back from overseas, there will be a rash of m&a activity. you look at small cap bio caps and financials, there will be a lot of interest in buying there. you have five reasons you like small caps you think there's a lot of biotech in particular deals?

>> large cap pharma -- >> they have no growth >> no growth they had to pay a 40% premium when they brought that cash back it will be shopping season >> if anything some of these pharma ceos have been called embattled. it's good to do a deal because you buy the growth, "b," distract your board for a couple mo months or quarters >> when you raise the sifi limit, things grow what do you mean by that >> above a certain level of size if you're a bank you had the government move in as your partner and regulator. >> we're from the government, we're here to help >> exactly >> that mimt mlimit may be rais. companies that didn't want to grow, they may want to grow now. >> so some change in bank regulations may help the deals

we've already seen fund managers talk about this. we have strong economic growth, m&a and trade. this is interesting. innovation is a top five reason for small caps no offense to any small cap company watching now if you're a ceo, i don't think of innovation when it comes to small caps. they don't have the r & d budgets. >> we talked about this a lot. we think we're in an industrial revolution in particular software you want new software solutions. some of the big f.a.n.g. companies will have to get innovative to get around regulation small cap companies with new technology provide that. there's an m&a opportunity and investment opportunity >> and tax rates are more reasonable now >> they had higher tax rates coming the average tax rate on a small cap was 33%, 35%, versus 20s for large caps

when you cut to 21%, there's earnings for these guys. >> you have the five reasons for small caps we covered all the bases thanks for coming in early >> thanks for having me. your morning's rbi, you know that yesterday's turnaround was big. the dow down more than 2% at session lows but it managed to finish higher. it's the third time this year that the dow has come back from a 2% deficit is that rare you better believe it. it happened how many times last year zero in fact, the first time it's come back from a 2% deficit this year since back in 2011. zero 2% turns for seven years, and already this year, we have had three 2% turns that's your rbi, random but interesting stat of the day. thanks for joining us on "worldwide exchange. we'll see you tomorrow "squawk box" and the whole team

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good morning what a session yesterday fears of a trade war easing, and now again today futures pointing to a higher open we have your list of the biggest movers. j.m. smuckers making a $2 billion bet on dog food. details straight ahead. and a warning from mark zuckerberg, he says facebook users with one particular box checked in their settings should assume their profile has been accessed or scraped by third parties. it's thursday april 5, 2018. "squawk box" begins now. ♪

>> live from new york where business never sleeps, this is "squawk box. good morning welcome to "squawk box" on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with andrew ross sorkin and yesterday the dow ended up 237 points. all of the major averages reversed course. the dow was up by almost 1%. the nasdaq up by 1.5%. this morning you can see green arrows once again. right now the dow indicated up by 117 points. s&p futures are up by 15 the nasdaq up by 53. look at what