it is 5:00 a.m. at your cnbc headquarters treasury secretary steven mnuchin saying the trade wars are on hold. ge may try to get smaller by merging its rail unit with another train company. lava continues to spill from hawaii's mt. kailua volcano. and a big win for fox as deadpool 2 takes a big spot at the box office "worldwide exchange" begins right now.

nothing like a little calm, peaceful acdc to kick off your monday i am brian sullivan. it is a good morning for your stock investments. futures are up big on the softening trade rhetoric around china. here is what treasury secretary steven mnuchin said over the weekend. >> we're putting the trade war on hold. so right now, we have agreed to put the tariffs on hold while we trying to execute the framework. the president has been very clear since the first meeting with president xi in mar-a-lago that we are going to reduce the trade deficit. we have an agreement with china they will substantially agree to it we just comment that ultimately these are not government to government transactions. it's not a giant purchase order with us. >> and if you don't think words

matter, they do. we're indicated now to open up 230 points higher. folks, you know this is one of the strongest moves for stock futures that we have seen in a long time. by the way, the treasury secretary will join cnbc about 8:00 a.m. eastern time this morning. much more on your morning coming up in moments. let's get your reaction to the comments from the other side of the trade story. that is china. eunice un is live for us in b n beijing. >> the term win-win is kind of used as a boilerplate for language the chinese use in order to describe diplomatic relations more generally however, the vice premier spoke to a reporter in washington and he said that this was constructive for both sides and very good for a couple of reasons. he said that the chinese would be able to buy more american goods, that the u.s. would be able to narrow its trade deficit and also that both sides would be engaged in a trade war because they pledge not to slap tariffs on each other. now, there was another message

coming out of the government today that was pretty interesting. because it was basically describing china as the one who also came out victorious because it was able to stand up and stand its ground on a couple of different points there was a commerce ministry researcher who laid these out. one, they said that china was able to avoid promising any changes regarding their industrial policy using government money to support new high tech industries the chinese were able to refuse to commit to any targets on the trade deficit. the trump administration had been insisting that the chinese stick to a $200 billion pledge and also the chinese have been selling the idea that the government here has been embracing the idea of bringing in u.s. imports to china, not because of pressure from the trump administration, but instead, because it's good for chinese consumers. separately from all of this, the

governor from alaska is in town with a large business delegation he said he was very relieved at the outcome of these discussions. this is what he told us earlier. >> i couldn't be happier we as a state were the closest state to china our largest trade partner is china and largely with seafood now we're looking and some of our mineral deposits, gold, etcetera now we're aeding the natural gas to it. for the next hundred years, we could be talking in the area of $1 trillion of commerce going from -- products coming from alaska to china because we have all these natural resources. so it's a big opportunity. >> one thing, though, that they didn't get was any movement on zte. because brian, as you know, the zte is very important to the country from a strategic level, also because of the number of jobs that the company employs. but so far, no word on that. >> big story there nice to hear from the alaska

governor eunice yoon in beijing, thank you. let's stay on the trade story. joining us now, julian pukis, a cnbc contributor i want to get your reaction to last nigh's "60 minutes" piece on goggle. but first, let's stay on trade >> yeah. >> do you think these comments from the trade secretary is a softening in the process or more of simply a stall tactic >> well, listen. i think it's really hard to talk about trade war and tariffs, g on pause, and then rev up the machinery again. i think there's a reason the chinese are happy. they avoided tariffs and there doesn't seem to be anything in this communique that would with lead you to believe they're anywhere close to changing their style of capitalism which is sort of this state driven, subsidy driven ip theft driven model and that was their goal. their goal is to keep that model intact they believe in it

and there's nothing in this communique that leads me to think that's going to change so i understand you think it's a win-win. certainly it's a win for them. and mnuchin is a globalist he doesn't want a trade war. so i'm sure he thinks this is grade. we avoided a trade war and if it ends up being some sort of deal in the end where there are more exports and agriculture or somehow the financial sector is more open, trump can say it's a win i just don't know if the real goal which had been the business model goal of china, i think that's been put to the side. >> but what i find odd about the comments, and listen, the equity market likes it. >> sure. they don't want the trade war. >> but i found it out that the treasury secretary used those terms. did you not? it's like two kids in high school who are going to go behind the shed and have a fistfight and they come out and say, you know what we're not going to fight now >> listen, it makes it sound like the whole idea of a trade

war was sort of a joke to begin with you don't sort of put wars on hold, go back and now we're going to restart the war that's really not going to work with a country which we have interest groups, we're -- where you have this sort of whole apparatus you need to rev up, public attention now that dissipates. it's unlikely all of a sudden we're going to return to a situation where we're talking about hundreds of billions of dollars worth of tariffs certainly anytime soon, which you see in the markets >> jimmy, i know we booked you on trade i'm going call an audible here >> that's fine >> i want to get your reaction to the 60 minutes piece on google last night. basically, they came out hard and they had the european commission and they said this is a company that is breaking at least european laws. do you think there will be u.s. reaction to that "60 minutes" deep dive or will it be sort of a lot of noise with no reaction, in part because they're the single biggest spender on

lobbying in the united states? >> well, they've been ramping that up and clearly they feel that there's a need to lob bow more to try to get their case out there. i don't think congress is close to doing anything, any sort of regulatory action certainly in this congress. i don't think we're going to duplicate what these terms are going to do. but tech firms are worried especially when you have newspapers or magazines running the exact same story with the exact same three or four or five anti-goggle or tech experts making the empirically light case that these companies are bad for innovation, they're bad for job growth, and they need to be broken up because they're hurting competition. that case i think is a very thin underpowered case at this point. >> yeah, it should we saw the stock reaction, by the way. the stock is fractionally

higher >> this was supposed to kill facebook their stock was down the stock isback these companies are very resilient. they're still super popular which might indicate that they're creating something super creative >> appreciate always seeing you. thank you. >> we're sprinting into the week thanks now back to the whole markets, futures are up sharply higher, up 230 points right now. joining us early, matt maley, equity strategist. matt, welcome, by the way, and happy monday are you surprised by the very strong reaction to the trade rhetoric softening over the weekend? is this a good move? is this a normal move? >> to be perfectly honest with you, i thought the futures were going to be stronger than they are. it's a positive development happening at a very key time one of the reasons why they're even higher, i thought it would

be 25 or more. is that, you know, there is -- even president trump's biggest attracters on this issue are on everything we're talking about how, you know, behind the scenes, they were saying the one issue that we need to get on is this intellectual property situation. so the fact that we seem to be pulling back without get ating a whole lot in return is disappointing a few people on that stepping back, though, this is no question at a positive development. it's coming at a time when we're moving the focus away from earnings earnings season is winding down. we have a few more this week, especially on the retail side. but that's coming to an end. people are going to go back and start focussing on these other so-called issues like north korea, interest rates and now trade and the fact that, you know, we're not going to have a trade war or at least don't seem to be having one is a positive development at a time when the markets just starting to try to break out a little bit to the up side after that february scare so this could be something that takes it higher.

>> only somebody from boston could be disappointed that we've got a 230-point jump in the futures, by the way, and i say that for love and affection for my friends up north. but how about this maybe it's $72 or $73 oil and a 3.1% on the yield on the ten-year that is muting that positive reaction, matt. >> yeah. i think so i mean, two things number one, on crude oil, historically, crude oil, it's a tax on the consumer, higher crude oil, that is that's a tax on the consumer and that makes sense but the thing is, usually oil and the stock market and the economy move up in tandem because it's demand driven and if it's demand driven, you know, the better economy, the better wages and all that make up for the added tax that we get from higher oil prices, higher gasoline prices, higher heating oil prices however, if it's on the supply side, if the supply is shrinking and that's the reason oil is going up, that's obviously what we saw in the 1970s, it's very

bad. stagflation, etcetera. right now, it's kinds of both. there's supply situation and concerns that more supply will come off the table with this whole thing with iran. so that can cause a problem with further growth for the second half of the year will growth be as strong as the people have been hoping for. and the other thing is, of course, interest rates we have to worry about higher interest rates, the impact it will have on the economy my thing, though, is whenever you get that big pop in interest rates, it exposes some malinvestments in the marketplace or some misallocation of assets. we saw it in 1987. that's the biggest one with the portfolio insurance. but this time, you know, we saw more recently in february with the whole everybody was on one side of the boat and the short volatility trade as we move forward, i always worry there's something out there that is going to kick us in the teeth a little bit. >> so 3.1% bond yields, and $71,

$72, $73 oil is okay for the equity market, correct we're okay >> okay at best. i mean, i -- you know, i just think that every time we break a key level, that 3% level on the -- sorry, on the ten-year yield was not just a number. some people say owed, it's a round number no, it was a key technical level from a couple of years ago and now that we're breaking above that, if it continues to shoot higher, which it very likely could, that's going to cause some problems. so you've got to be very careful on that one. >> matt malley, miller teback joining us so early. we appreciate it great view on the markets as always thank you. >> thank you >> so much more already done, but so much more to do on this busy monday. coming up, could google be broken up? we'll show you the reaction to that big "60 minutes" investigate last night plus, wasn't tesla's model 3 supposed to be the cheaper option wait until you hear the potential price tag that elon musk talked about last night into retirement...

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night. she says her office scanned more than a billion google search results. for its part, google decline's cbs's request for an interview, arguing that it was not a monopoly in search and search advertising and saying it does not make changes to its algorithm to disadvantage any google competitors google stock is actually up higher this morning. another big corporate name and dow component we are watching this morning is ge. ge reportedly near a deal to merge its transportation company with another company kate rogers is joining us with more on that story >> that keel could be worth $20 billion. ge is nearing an agreement to merge its transportation unit with wabtec. the deal could be announced this week it would be the biggest deal yet for ge's ceo john flannery out with a research note

overnight, he says the deal would actually be a big positive for pennsylvania-based wabtec. neither ge more wabtec would respond to requests for comment. elon musk out with some new details on tesla's new model 3 keep in mind, there are two versions of the car. he's talking about the higher end, higher performance one been and it will sell for backside$7. now musk was out, indeed, talking up the car's specs, that it could go to zero to 60 in less than 4 seconds and has a 150-mile-per-hour top speed. musk claiming it will beat anything in its class on the track. tesla shares are up this morning about 2% still down about 10% year-to-date still cocome here, hawaii on high alert fast moving lava now gushing

into the pacific ocean and one lucky grocery store shopper in new jersey, $300 million richer today the powerball winner when we come right back.

dow futures indicating a jump of 237 points at the open this after the treasury

secretary took a much softer tone on trade after the weekend saying for now any potential trade war with china is, quote, on hold. all this despite oil's slow climb higher crude oil is trading above 71 right now. we have an oil strata is going to make you sound wicked smart this morning right now, turn to go political news, president trump says he will demand the just department look into its own people and the fbi to see if the agency infiltrated his 2016 presidential campaign. susan is joining us now with more >> this happened yesterday from the president in a tweet he says he's going to officially make this demand today to look into whether there was a spy embedded in his presidential campaign in 2016 the deputy attorney general is responding

>> today, president trump will officially demand what he tweeted sunday, that the department of justice investigate whether it or the fbi improperly spy on his 2016 presidential campaign. earlier, the president accused the fbi of imbedding a spy among his campaign staff long before the, quote, phony russia hoax. the fbi reportedly did send an informant to talk with trump campaign aides only after finding evidence of suspicious contacts with russian officials. some republicans say the accusations are worth a look >> i want to make sure that the fbi and the department of justice did not try to, in their own way, change the outcome of the election >> democrats lashed out at the president, house minority leader nancy pelosi tweeting he has insulted and tried to discredit the men and women t fbi and doj to deextract from the russia scandal. >> all he's asking for is for

them to investigate it he's not telling them what to conclude >> now deputy attorney general rod rosen sateen is asking the justice department to review if there was improper surveillance of the trump campaign. >> and the president's attorney says the mueller team told him the obstruction part of the investigation will be wrapped up by september 1st >> sue soon, a pleasurier. we'll see you soon >> thanks. >> nbc's phillip menna is in new york with more on that >> hey there, brian. good morning hawaii's explosive kailua volcano has claimed its first official injury. a man was sitting on his third floor balcony when he got hit in the leg by lava that shot into the air. he is expected to recover. celebrity chef mario batali is under criminal investigation after a string of disturbing sexual abuse allegations from

women who used to wore for him several female employees have accused batali of drugging and sexually assaulting them and someone in new jersey is $315 million richer this morning after matching all five numbers plus that elusive powerball. the ticket was sold at a shopright grocery store in new jersey according to lottery officials, the winning ticket will be worth a little over $183 million in cash and, brian, hopefully they figured this out before they head to work this morning. >> would you head to work this morning, phillip >> i would, just to say hello and good-bye >> phillip menna, the most honest man on television thank you very much. we appreciate it >> thank you >> 183 million sounds good i would come in. i'd work twice as hard still to come here on "worldwide exchange," on hold,

that is what treasury secretary steven mnuchin is calling the u.s.-china trade war the markets loving those comments futures are up big more on this from d.c. ahead and later on, it's not just trade. the smartphone wars heating up, samsung calling out apple directly in its latest ad and it did not hold back. we'll give thaw and the rest of the morning's top stories. but first, as we head out, words of wisdom from jim cramer as he delivered the commencement speech to bucknell's class of 2018 >> if things don't pan out the way you would want, because life after graduation is rarely a straight path, there are twists and there are turns and roadblocks and defeats you and must know how to negotiate them and negotiate them gracefully, earnestly as possible. arisote as you will certainly len n an on-ramp to the hov success lane with soft surfaces that trap odors and release them back into the room. so, try febreze fabric refresher.

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the u.s. and china hit ago pause button on any potential trade war. full details for your money, ahead. venezuela votes. theoretically. global reaction pouring in after nicholas maduro wins a second term and the united states of oil, we're drilling down on the one state that is behind the big boom, and it's not texas it is monday, may 21st and you're watching "worldwide exchange" on cnbc.

welcome back thank you for being with us on this monday morning. i promise you, you're in one for one of the best shows this week. italy is waiting to find out who its next prime minister will be. the country's 5-star movement and lega party have reportedly already agreed on who it should be local media now speculating that conte could be the next pick for their prime minister ge reportedly near a deal to merge its transportation unit with royal partmaker wabtec. the deal may value the combined company at $20 billion could be announced as early as this week. elon musk is out with new details on tesla had's new model three. he notes there will be two versions, both of them with dual motors but get this the performance version is going to sell for $78,000. this was supposed to be the cheaper option, remember go from zero to 60 in less than

4 seconds, 155-mile-per-hour top speed but that price tag may turn some folks off. you know what's note being turned off that is the stock futures because the dow indicated with a big jump of nearly 240 points right now. this on the back of softening comments on trade over the weekend from u.s. treasury secretary steven mnuchin who said over the weekend the trade war with china is, quote, on hold the two countries agreeing to drop trafin threats were working on a wider agreement ayman is joining us with more on this dramatic about face and traumatic reaction to it >> it appears to be a break through no negotiations over the weekend. the chinese delegation led by the vice premier is in town through the weekend hammering out a deal with the u.s. no official deal announced here. so we don't have any terms to bring you. but the u.s. side is saying it's going to hold off on those tariffs that the president threatened putting in place on the chinese. about 1$150 billion worth of

goods. that is now off. here is how steven mnuchin described this over the weekend. >> we're putting it trade war on hold right now, we have agreed to put the teariffs on hold the president has been very clear since the first meeting with president xi in mar-a-lago that we are going to reduce the trade deficit. we have an agreement with china they will substantially agree to it we just comment that ultimately these are not government to government transactions. it's not a giant purchase order with us. >> so, brian, you remember last week officials had talked about a $200 billions deal to lower the trade deficit with china would mean the chinese would be purchasing goods over the weekend, though, no specific commitment to that particular figure. we don't have any numbers to underscore this. a senior administration official did tell me last week that one

element of the deal coming together behind the scenes is that the financial services companies would be allowed to have majority ownership in chinese firms after the deal passes that is something we haven't seen before. another sticking point here is zte, which is the telecommunications company in china that had been said to away national security threat in the united states. what would happen to zte, which had been sanctioned by the united states, was one of the political footballs in all of this here is how larry kudlow, th national economic council director described what is likely to happen next to zte over the weekend >> let me just say with as much clarity as possible, if any of the remedies are altered, they are still going to be very, very tough, including big fines, compliance measures, new management, new boards the question is whether there are, perhaps, some small changes around the edges

i think president trump is doing this because there's some very good feeling between him and china. do not, please do not expect zte to get off scott free. ain't going to happen. >> so kudlow there saying that zte won't get off scott free, that there will be some sanctions or punishment for that company, but not entirely clear what those will be he said that the president, though, wants to take some steps to loosen up things on zte because he's got a good relationship with president xi jinping of china and, of course, the president himself said that he looked into the zte matter because president xi asked him to do that, presumely in a phone call last weekend, brian so a lot of moving parts here. no specific deal, but a lot of welcome rhetoric for those who are worried about a trade war. >> yeah. a lot of moving parts, ayman by the way, maybe we'll get some clarity on these moving parts later on this morning. steven mnuchin will join the

"squawk box" team around 8:00 eastern time a lot obviously to dive into with the treasury secretary. let's dive into michael farr, a cnbc contributor michael, the markets are liking the softening of tone. are you a buyer into it? do you think it changes the calculus on anything with regards to stocks? >> yes, i'm a buyer. but i'm a buyer at the right price. i don't think it changes the calculus broadly we found out certainly that the headlines from this administration give-and-take away and when we first saw tariffs and when we first heard the headlines and the president's quotation about, you know, trade wars aren't a big deal and they're easily won and we're going to go do it, markets didn't like it very much well, the flip side comes with us and we're getting buffeted by some wins at our back here i think we have to be a little bit cautious about how we react as investors to all of these headlines and pay more attention

to the fundamentals, pay more attention to balance sheets and earnings growth. stocks aren't wildly overpriced at all, but they're not cheap. >> are they expensive? not cheap. cheep could mean they're too expensive. >> some are with, in my opinion, because -- and i was reading your tweets over the weekend about jack voguel. and you should follow, by the way, brian on twitter, ladies and gentlemen. you should do it because -- anyway, voguel is talking about indexing when you index and you buy some of these etfs, you are buying stocks in there that are already very expensive and you're probably buying more of them because they take up a larger percentage of the index. so yes, some stocks are expensive. some stocks are fully priced i think if you look at the value stocks, they didn't have a very good year last year and i like to deploy money into some things that haven't worked very well and really pick up on more upside >> thank you >> more expensive is tough

>> thank you, michael, for that. listen, i try to put the social in social media and just be a little more funny and light. everyone wants to slam everybody. >> right >> and i love jack voguel and i love what vanguard has done. i'm friends with some of his family however -- >> changed our industry. >> it is but what i meant to say was at least i'm glad that people are diving into the equity market structure. i think it's a little big to talk about at 5:37 in the morning. but do you believe that this huge move towards passive and indexing has, indecember, maybe skewed the valuation of some stocks we hear it from ceos all the time is their stock can't get any attention or love. everybody is indexing. they wonder what does it take to get some notice in the equity market >> right i think it's a really good point. and i've talked to some folks, even the ceo of syneloid corporation. it's a little stainless steel and chemical company synl there might be included now in the russell 2,000 and all of a

sudden their stocks are getting a lot of attention maybe you tell those analysts or the ceos if you want those to get attention, get included in one of the indexes buffett looks at one indicator of the overall market cap of stocks, which is about 33, 34 trillion dollars right now 130 some odd percent of gdp. the stocks being equal to about gdp is the norm. so by that measure, they're overvalued, probably a result of all of the quantitative easing and the cash and all of the cheap money we've had for about ten years. so we've seen prices go up in this unprecedented period of quantitative easing. indexing is skewing things a little better. so for an old timer, i like to own stocks individually where i know the balance sheets are solid and i don't want to ride really on the whims of the herd. >> yeah. it is a big story and we're probably going to talk more about it >> it's an important story

>> yeah, it is thank you very much, buddy i i appreciate it. it's both an important day for u.s. trading policy and oil, not just in venezuela, but also in iran. michelle caruso cabrera is here with more. >> the first event happens 3 1/2 hours from now secretary of state mike pompeo makes his first major foreign policy speech and it is on iran. the administration just pulled out of the nuclear agreement with iran ten days ago and now we learn more about how aggressive pompeo wants to be. the location of the speech, the heritage foundation, a very conservative think tank offers a clue of the tonality the second thing to watch for, how the administration responds to venezuela's so-called election yesterday no one was shocked to hear that nicholas maduro was elected.

it has been labeled a sham by many international institutions. friday, treasury fired a warning shot and sanctioned more individual venezuelas and there's a lot of expectations in the market that at some point they're going to begin sanctions on the oil sector itself the strongest sanctions would be a full embargo on venezuela oil. the country supplies roughly 600,000 barrels to the u.s. per day. that's according to the eia. that is 2017 data. it could be even lower because of the collapse of production there, brian >> terrible. the currency is effectively worthless, inflation is out of control. people are literally starving to death in venezuela oil is all they've got as you've noted, it's coming down can i switch gears quickly to iran i want to talk about iranian oil, another big story out there. have you got any indication in your reporting on who may still be willing to buy iranian oil, given some of the strong moves that we have seen from the trump administration >> so china and india have always been the biggest buyers

of iranian oil thus far, we haven't heard that they would stop. the question is will a bank finance the deal who is actually going to do the transaction? europe, theoretically, could buy oil, as well already we've seen european banks say they're just not going to do business with iran because european banks need to do business in dollars and treasury will sanction them if they continue to fund any kind of transactions so theoretically, there could be buyers willing to do so. can they get a bank to actually do the deal is the bigger question >> remember on power lunch a couple months ago, you had that great guest that you introduced us to, the gentleman from argentina, the banker. i can't remember his name. but he told that amazing story about how when he goes to lunch in caracas, he literally brings a briefcase of cash. >> yeah. he says he needs a buffalo bag to pay $5 for lunch. that's why, for example, electronic currency like bitcoin

has become popular there if you can get the equipment to mine it because it's a stored value compared to the venezuelan currency which to your points says is basically worthless. >> a duffel bag of cash to pay for lunch. that's where that country, once proud nation, was. thank you. we'll see you on squawk in a bit. appreciate it. on deck, if you went to bed early and missed the billboard music awards, don't worry, we have the highlights, including an emotional moment around the texas school shootings in santa fe and samsung koul calling out apple in a big way, but will it work

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roundup. trusted for over 40 years. 5:44 on this mondz morning futures are up in a big way. right now, the dow indicate ago jump of 243 points that is the strongest futures market that we have seen this year, at least that i can remember, anyway time for the morning's top trending stories with kate rogers kate >> hi, brian good morning again kelly clarkson started off last night's billboard awards by giving tribute to the victims of santa fe high school >> tonight, they wanted me to say that obviously we want to pray for the victims, we want to pray for their families, but they also wanted me to do a moment of silence.

and i'm so sick of moment of silence. it's not working, obviously. so -- sorry. so why don't we not do a moment of silence why don't we do a moment of action >> later on in the show, sean mendez and khalid were joined on stage by members from the choir of the marjory stoneman douglas high school. ed sheeran accepted the best male artist award and taylor swift took home the best female artist janet jackson gave her first at the televised performance. check out this new samsung ad >> can we fix this performance >> it may lead to unexpected shutdowns. >> battery tlolthing >> or you can just upgrade it. >> samsung is looking for new customers. its new ad emphasizes all the

headaches of iphone ownership and presents its galaxy line as the solution now to the box office, deadpool 2 dethroned avengers this weekend that was good any for the second best opening ever for an r-rated film behind only its pre-quel. if apple wanted to punch back on battery issues, they f might have some fodder, but i think apple is probably above that samsung had some, if i remember. kate rogers, thank you very much in sports news, the golden state warriors taking a 2-1 lead in the conference finals it wasn't close. 126-85 steph curry and kevin durant combined for 61 points it was the worst playoff loss in houston rockets history. let's find out now what is coming up on "squawk box."

joe kernen is in joe, you got the treasury secretary who i think made a little news over the weekend >> yeah. we'll try to figure out, you know, who is driving the car here lightheiser or mnuchin the stock market seems to think something is good. we have senator barasso on for an hour. we'll talk with him about this as you said, the market, after -- what was it, eight out of ten days, nine out of ten being up, anyway, since that thursday when we were down about 400 mid day and closed up five remember that? and it's been up ever since then i've been trying to watch some nba, brian, you know both -- i watched some hockey, too, actually. but the nba is not college, is it have you noticed that? how long would you have watched last night if you had been up? >> listen, you know that the owner of the rockets is our friend here, tillman fertita i love the city of houston i'm pulling for the rockets. i'm not going to try and fake it

and pretend i'm not bias i am it was a tough game to watch >> no, i mean, for a fan for a fan. and i watched one on saturday. it wasn't close. i don't even know if those -- >> i don't think there was a league change. >> you're right on mark. it is weird. the games have been blowouts every single game. doesn't matter who it is >> and i don't want to say anything, but you watched the -- here i go, though. you watch college and they have a longer shot clock. no one is ever standing around they play unbelievable defense the most i saw was backing up, backing up, backing up and then he turns around and does -- that was the biggest play they ran while everyone else -- i don't know i'm not sure it would be good, though, if it was close. maybe then it would be good. i do see lebron do some amazing things passes and assists and stuff like that. but i don't know i'm looking for final four and

i'm just not seeing it >> i just want someone to loop that chair backing up thing that you just did we've got a -- that's going to be a kernen meme back it up back that thing on up. >> anyway, did you see wilf? no subtitles, though, during the whole wedding thing. >> i heard some two famous people got married this weekend. that's what i am told. >> yes, i dpp. >> i'm not a viewer. >> i cried i mean, he's such a young guy to be cashing in his chips. i do cry i cried at -- no, that was horrible it was beautiful she's great. it's a fairytale >> full life >> joe, thank you. backing up, backing up >> backing up. >> king dollar, why a strong u.s. currency is causing pain for multi nationals. your morning rbi willing interesting. has nothing to do with texas too th the peace garden state. stick around these birds once affected by oil

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the u.s. dollar has been surging and weighing heavily on some multi nationals seema has more on this story >> that rally has brought forward an active discussion what does it mean for consumers, businesses and companies domestic companies tend to do well, but it's the multi nationals, the companies with international exposure that have more to be worried about as they could make their products less attractive to consumers abroad or diskernlg foreigns from raffling to the u.s. and buying american goods that's why top of the list is retail companies like tiffany's, macy's, michael kors, even walmart has mentioned currency fluctuations in the past for weakness and results analysts point to globally diversified names like procter & gamble, heinz, j&j given their key exposure to emerging markets which tend to be more price

sensitive and are less keen to pay higher prices when that dollar does rise then there's apple on the flip side, the companies that derive a large percentage of their sales inside the u.s. are more sheltered given that appreciated dollar at&t, verizon, home depot, it's important to take into account where these companies source their goods from one way to lessen the blow from an appreciated dollar is to implement some strategies around hedging your currency risks, but that can be very difficult to manage and time. and that is why the stronger dollar, if it continues to be a big story out there, could be a bigger headache for those multi nationals. brian. >> king dollar may be saying off with their heads we'll see or at least off with their earnings seema mody, thank you. joining us now on the cnbc news line is john sylvia john, welcome. how much, if at all, are you

worried about the story seema just gave in the stronger u.s. dollar >> it has to be significant because, as you know, trade is the story in terms of this administration you can negotiate with china and you can negotiate with nafa. but if that stronger dollar continues to rise, it's going to make it more difficult in terms of u.s. exports. >> yeah. but will it injure the stock market will it pinch earnings will it bring down valuations? >> well, you know, when you look at the s&p 500, brian, one-third of the revenues from that s&p index comes from abroad. and that's particularly true when you look at health care and i.t. and materials and energy. so, yeah, it's very important, particularly if you're invested in those four sectors. >> you remain optimistic for equities for the rest of the year, john futures are soaring this morning. >> yeah. you have to be optimistic because you have decent economic growth at least in the united states so for those companies focused primarily n u.s., as you've seen what that russell 2,000

continues to show improvement. >> john sylvia of wells fargo joining us nice market update right there at the end we'll see you soon thank you very much. >> yes, sir. >> let's wrap it up with your morning rbi. more on the greatest oil boom that america has ever seen no, it is not in texas it is the peace garden state north dakota producing now about 1.2 million barrels of oil per day. if that sounds impressive, it is and consider this. just 20 years ago, the entire daily production in north dakota was 97,000 barrels of oil a day. 97,000 that's likes six guys in a pickup truck by the way, 97,000 to 1.2 million is a growth rate of a staggering 1100% that, my friends, is definitely random, but hopefully interesting. by the way, we're not mentioning north dakota by accident we're going to go back up there and check in on our friends in the baken. we've got a huge show fou for you on wednesday we're going to tell you more about it

but for now, i want to say, we are coming for you, bismarck i'll see you at an airport atsowhe. th's it for "worldwide exchange." "squawk box" coming up next. your joints... or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally found in jellyfish, prevagen is now the number one selling brain-health supplement in drug stores nationwide. prevagen. the name to remember.

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secretary mnuchin said the u.s.-china trade wars are now on hold secretary will join us at 8:00 a.m. eastern for a live interview. general electric is reportedly near a deal to merge its transportation unit with rail equipmentmaker wabtec. and venezuelan's socialist president claiming a landslide re-election victory. we'll tell you why it would have a major impact on the oil market on this monday, may 21st, 2018 "squawk box" begins right now.

live from new york where business never sleeps, this is "squawk box. >> good morning, everybody welcome back to "squawk box" here on cnbc i'm barack obaecky quick along kernen and andrew ross sorkin. we've heard the trade war is on hold at least for now. secretary mnuchin speaking over the weekend about some of these issues and we will be speaking to us this morning on "squawk box. but that is probably a big part of the reason that you're seeing these big numbers today. stocks are up in asia, as well s&p 500 indicated up by about 15 points the nas das dak up quarterba