it is 11:00 a.m. on the beaches of france, and here are your top five at 5:00 a.m. on the east coast another black eye for facebook after admitting it's been sharing data with a chinese company that's been labeled a national security threat, among others tesla shareholders striking down a proposal to remove elon musk as chairman of the board hundreds more homes in hawaii destroyed. lava continuing to flow from mt. kilauea. china's zte reportedly inking a deal with america that would put it back in business. anr airways chief executive apologizing for the sexist remarks that he made yesterday. it is wednesday, june 6th, and "worldwide exchange" begins right now.

♪ start me up ♪ all you got, you got all right, good morning, and welcome from wherever in the world you may be watching. i am brian sullivan. if you're wondering about our ofrance at the top of he beaches show, remember, today is the 74th anniversary of d-day. all right, on this big day, stocks look like they could rise again. stock futures indicating the dow will move up about 90 points at the open the s&p and the nasdaq are also at highs we're on record-high watch for the nasdaq as well bond yields, though, creeping back higher as well, slowly sort of ticking back up toward that 3% mark. the benchmark ten-year is at 2.94%. you can see yields moving a little higher across the spectrum there asia also higher are you noticing a trend here, folks? asia up, japan, hong kong, domestic china, and in europe as well, green across the screen. kind of un -- okay, italy, thank

you, italy you just blew my whole thesis. look at this either way, france, germany, the uk, they are all up as well. italy certainly one that has its own problems broadening it out, you've got oil which is also creeping, mornin wl.little bitis theu is a little bit higher against the u.s. dollar, sort of reversing that trend where it had been weaker here and bitcoin, we woke up this morning, which is just way earlier than you need to know about, bitcoin was up a couple of perce it has turned around it's kind of flat to maybe now slightly higher on the coin-based exchange. either way, bitcoin and the cryptos, as always, something to watch. all right, so, that isr wednesday setup on what you need to know going forward for tomorrow, this month, the rest of the year. joining us on set, malcolm polly, chief investment officer at stewart capital advisers. malcolm, welcome good to see you. >> thanks. thanks for having me. >> you know, we've got this little mini rally going on i mean, the whole thing was sort of green on the screen today does it feel a little too hot to

you? >> the markets do tend to run a little bit hot and cold, and after the disruption we had in the spring, it needed to move back up. but has it gotbit ahead of itse some markets, perhaps tech, certainly run hot the last couple months, but from a broader rspectiv finding plentyo buy. >> we pointed out yesterday in our rbi, a random but interesting stat, that netflix not only was the best stock this year, it was 34% better than the next best stock on the nasdaq 100. does the sort of narrowness of the rally concern you in any way? >> not necessarily, no i mean, the market tends to move in fits and starts and secd some faster than others, but the narrowness we think will probably broaden out by year end. >> okay. you said you were finding places to put money. >> right. >> small cap domestic names -- i know it's early. it's the morning voice small cap domestic names, why do

they stand out to you as a good opportunity for our viewers? >> smaller cap domestic names really get the biggest benefit from the tax cut, and most of that tax cut's going to drop straight to the bottom line in terms cash flow small caps also were the worst performing sector in the market last year, and we really think that it's their time to rise to the top, so far -- >> you believe so? >> yes. >> do you believe, you know, with all the trade every day, tl trade is on the front page of the business news and cnbc do you think they're insolated >> i don't know if they're insolated, but they certainly aren't as impacted by the trade weather that seems to buffet us daily. >> because here's the thought. i get the basic thesis is small caps, you know, they don't sell anything overseas, so therefore they're insolated. but with the big stocks, if we start to see a slowdown in global trade, wouldn't that trickle negatively through the entire u.s. economy, and thus alsoventually make its way do to the earnings of the

russell 2000 >> potentially, yes, but the smaller cap names also are growing faster so you know, the multiples large caps will tend to be aller ovmultiples ofmall caps wl tend to be larger because of their growth, and we think that their growth is preferable this year. >> the atlanta gdp, and we could have steve liesman on this morning to discuss and debate how good their estimates may be. either way, the atlanta fe of a that the economy may grow at nearly 5%. >> right. >> this quarter. >> right. >> are you that big of a bull? i mean, god bless our friends down south i hope they're right 4.8% growth on the economy are you that wildly optimistic >> look, the key is not necessarily that the atlanta fed is going to be right at 4.8% it's a number in time and it will change up until the point in time the gdp numbers are released the important thing to take away is that growth in second quarter

is going to be better than growth in the first quarter, and we believe that consumers have been stepping up and spending in the secouarter that will flowhrough to gdp. reality is consumer's still 70%-plus of gdp. so if the consumer is indeed stepping up like we think they are, the gdp number should come through. >> bottom line is, economy's pretty good, things are pretty good. >> right. >> stay focused maybe on those smaller cap, domestically focused names. >> correct correct. >> malcolm, it's a pleasure. good to see you. all right, to today's top corporate story, and that is facebook it is confirming that several chinese companies potentially have access to your data contessa brewer joining us now with more on this developing story. >> this is sure to get the attention of privacy advocates the social media giant is admitting it has data-sharing agreements with at least four chinese firms. one ofthose companies is chinese telecom giant huawei, which has been flagged by u.s. intelligencels as a national security threat "the new york times," which first broke this story, says the data-sharing agreements date back to at 2010.

they still remain in effect. facebook says it plans to wind down its huawei partnership by the end of the week. th media company tel "the new york times" all data shared with huawei stayed on its phone and not huawei's servers, but not everyone is convinced. mark warner is looking forward to learning more about how facebook ensured that the information about their users was not sent to chinese servers. shares are off, and this is concerning because we learned last week they were sharing data with blackberry and other domestic apple, google, amazon now we're learning that they were sharing this information with, you know, huawei has been linked to the chinese government, to the army. its founder was an engineer for the army there it raises a lot of questions about the way facebook has been sharing data >> yeah. they're also taking some heat

for the way that they shared data through your friends. apparently, it's not just when you click that agree button, at leasyears o, thawould, you know, subscribe to their policy provisions or privacy provisions, thou were also agreeing to share your friends' users' data, from what i understand. >> and this is problematic because if you were smart enough to go into your settings and to block facebook from sharing a lot of the information you didn't want, you had no idea that they could do so through your friends, even if you didn't want to. and also, it's problematic because a lot of people are using these apps on their work devices. and so, that creates a conflict. you know, our company, for instance, really wants to limit the access that you have to personal company data. >> well, we're not the only ones stick around i want you to hear this story. do you know this story >> is this about the german automaker? >> it is about the german automaker. it's actually an auto parts maker, but you got it. a german auto parts maker reportedly banning its 240,000 workers from using or installing facebook, whatsapp, and snapchat

on their company-issued smartphones. the company says the move comes in the wake of europe's sweeping new tech regulations they're saying, quote, we think it is unacceptable to transfer b complying with data protection laws that's why we are turning to secure alternatives. so, the company is not really blaming facebook they're mo saying we want to protect the workers from getting in trouble with the new data privacy rules in europe, but i think that any thinking person could see through this little bit and say they don't want that stuff on what isheir phone. >> okay, but let's just look at, again, if go back to facebook and what they were sharing with these chinese companies, it was contact lists, relationship status, work status. if you think about your contact list that's on your phone, who can you contact? we can pull up the ceo's information. we can pull up the head of finance. those people are vulnerable to phishing scams and to targeting

with mall weware and things like that it's a slippery slope and they don't want anyone else accessing that data. >> comment and a question for you this morning are you ready? >> born ready! >> we get to meet a lot of cool people that sort of run these companies. i'm noticing a lot more people using flip phones. >> what? >> yeah, a lot more. i'm saying a lot, but a lot more bo's -- here's abasis.mber two, question -- what does facebook sell >> advertising. >> but how >> on their platform -- >> no, they sell you >> oh. >> if there is no product and facebook has no product for sale, it's not just them could we defend it a little bit and say, if you're on a social media platform like twitter, there's no payment of anything to anybody they sell you. >> do you want to be sold? that's the question. >> there you go. elon musk can keep his dual job as chairman and ceo of tesla, according to company shareholders last night they rejected a

proposal to split those jobs speaking at tesla's annual meeting yesterday, musk gave a production update also, saying that building 5,000 model 3s per week by the end of this month is in his words quite likely. >> it's like, whoo this is, like, i'll tell you, the most excruciating, hellish several months i've maybe ever had, and a lot of other people at tesla, but i think we're getting there. >> musk reiterating that the company is not planning on raising additional money eithere are going to have positive gap net income next quarter as well as positive cash flow in q-3 and q-4, and we, as i've said before, do not expect to need to raise any incremental debt or equity >> now tesla shares are down about 5% so far this year and off more than 20% from the

recent high in september all right, some of your big individual stock stories today include hp the company now expects up to 5,000 employees to leave the company by the end of fial 2019, part oongoing restructuring plan that is more people than previously expected.hp eects prf about $700 million related to those layoffs. u.s. steel planning restart another blast furnace in illinois the company will hire 300 more workers back as a result u.s. steel also backing its full-year earnings guidance. credit suisse will pay nearly $50 million to settle a justice department probe into the bank's hiring practice in asia inveatn looked into whether the company hired people from government agencies in asia in exchange for business all right, we are juststard "worldwide exchange. on deck, back in business, zte reportedly signing a deal that could help their company in big what that might mean for the future of u.s. trade talks with china. we will head to beijing live for

a report and a wednesday mystery chart for you. the one stock that your guest l coal mine, so to speak, for the global stock market. text u tet us your guesses @cnbcwex we'll bring you the answer to the mystery chart later on do you want the same tools and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated of trading specialists? did you say yes? good, then it's time for power e*trade. the platform, price and service that gives you the edge you need. looks like we have a couple seconds left. let's do some card twirling twirling cards e*trade. the original place to invest online.

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good morning 5:15 here on the east coast and

dow futures just continue to get stronger i mean, listen, the day's half over already, folks, right we're up 111 points on the dow as well. by the way, bond yields, though, they're not going down, they're going up along with stocks they keeing back toward that 3% mark the ten-year yield this morning at 24% in corporate news globally, china's zte reportedly inking a deal with america that would put it back in business. eunice yoon joining us live from beijing with more on this story. eunice >> reporter: thanks so much, brian. well, it looks as though zt senk close to a rescue. according to some of the preliminary terms, zte would agree to a rescue deal up to $1.7 billion in financial penalties, a management change in 30 days, unrestricted u.s. representative visits to verify u.s. components are being used, a new compliance contractor, post calculations of.s. parts on their websites as well. and as you guys know, the

company had effectively been shut down after the u.s. commerce department had imposed this ban because they found that the company had violated sanctions, illegally selling some goods to an as well as north korea, and also then later breaching the terms of the settlement now, zte isn't commenting so far, but the medeen reporting that zte has already started taking steps in this direction to meet some of those requirements and also to meet some of the requirements of its previous settlement. so, in the media, just in the past week, zte has been reported as firing two seni executives, stripping another of its communist party secretary title, and reshing others from their posts. the company also sent out letters reprimanding 35 current well as former employees and are calling back bonuses already. now, the commerce department sa overnight that no definitive agreement has been signed we contacted the chinese

commerce ministry as well, and they said, so far, there i information to share for now, but there is definitely a lot of about i here. brian? >> you referenced the media, but what about the business news media in china how are they reato this news is it relief or is it still in the first plated states >> reporter: there's a lot of relief right now and in some of the state media, they've been talking about how this is a hard one result, iis e others have been calling it a worth cherishing there is another piece, commentary, that had a headline that said, international companies shou rely on the government, saying that you don't want to continuously go back to the government, in case you have a mistake but overall, there has been a lot of relief and cheering going on in the media because of this latest development, brian, although i would suspect that there probably won't be as much excitement in congress.

>> yeah. we're going to wait and see. either way, though, big news for zte. we'll see what the political fallout is here and there. eunice yoon, as always, thank you. see you soon. all right, on deck, the countdown is on. we are less than a week away from the highly anticipate summit with north korea. we'll give you a preview, ahead. and talk about a joy ride. police pursuing, get this, a stolen armored personnel caie e deahd.rrr.

all right, welcome back. good morning could be another good day for your stock investments futures indicating a triple-digit jump at the open. in commodities, the oil market we're starting to see a little move again oil prices are slightly higher today. your big stock stories include a.m. ambarella they reported better-than-expected first-quarter results. however, forecasting weaker second-quarter revenue, that stock down nearly 9% premarket shares of ali's bargain outlet likely to be cheaper today, this despite the retailer reportingtt first-quarter numbers. same-store sales came in just shy of estimates you know the brands like good stuff cheap. and smurfit kappa is higher in london today after international paper dropping its $10 billion bid for the packaging company. smurfit has now twice rejected offers from ip. well, olitic news, president trump's meeting with noh korean leader kim jong-un

now less than a week away. all of washington is getting ready. nbc's tracie potts joining us now with more. >> reporter: but getting ready for what what's the end game here, brian? that's the question a lot of people are asking. is the president supposed to walk away with a treaty that says no more nuclear weapons on the korean summit with a way tvt to be a statement between the two countries that no one can enforce? >> thank you >> reporter: president trump describes it as a meet-and-greet. >> a lot of relationship being lot of negotiation going on even before the trip. >> reporter: the state department says there is one goal -- >> we will not pull back that pressure campaign until north korea follows through on its pledge to denuclearize. >> reporter: but the state department is not in charge of planning the summit between the u.s. and north korea the e use is press secretary sarah sanders tweets the location, a posh island hotel in singapore. but with six days to go, few

other details have been made public will they discuss easing economic sanctions and how will eliminating nuclear weapons be verified? >> it has to be complete, verifiable, and irreversible and the pressure on north korea has to bsustained. >> theirntent is to put together a treaty that will be submitted to the united states senate under the constitution for ratification. >> reporter: and still unknown, how long will this summit last now, president trump has left the door open for the summit to go for more than just one day. but in singapore, they just don't know right now they're planning for up to three, brian. >> planning for up to three as well and tracie, i have a feeling that just a sneaking suspicion yilbenging us more on this story throughout the week in the next couple of days or is that just wild speculation? >> reporter: i will be i won't be in singapore, but i will be keeping you up todate from here. >> all right please do that we appreciate it, tracie potts have a great day. >> thanks. >> all right. let's get a check on this

morning's other headlines outside of the world of business, including the late returns from all the big congressional primaries out west philip mena in new york with more on that phil. r: that'ri good morning, brian. california's republican party is breathing a sigh of relief after tuesday's primary, as republican gubernatorial candidate john cox earned a spot in november's general election the party had faced the possibility of not having any candidate at all that's because under california's jungle primary system, the two candidates with the most votes from either party advance to november. now cox will face democrat gavin newsom in the fall and the volcanic disaster in hawaii, it's taken another angry turn lava has destroyed hundreds more homes on hawaii's big island this marks the most destructive day since the kilauea volcano erupted a month ago. fortunately, no injuries were reported because most residents there had already evacuated. and a bizarre chase to show you through virginia, where a man took off with a military vehicle. the suspect, a soldier from

ft. pickett, stole the tanklike vehicle from the virginia national guard and then led police on a two-hour-long chase along several highways police later confirmed that it was not a tank and not equipped with any weapons the driver ultimatel surrendered, and charges are now pending. brian, back to you >> all right, looks like -- i mean, i know it don't have a giant gun sticking out of the front, but it kind of looks like a tank philip, i am not saying you should steal an apc. never do that. as your attorney, i suggest -- but if you were to steal an armored personnel carrier, whawld you crush >> well, it only goes 40 miles an hour top speed, so i wouldn't get far -- >> that thing looks like it's hauling. honestly maybe we sped the video up it's boogying through downtown it's very dangerous. >> i'd probably run over my first vehicle thatave me a lot of problems and never wanted to see that again. >> what was that >> an old honda civic from god knows, early '90. >> spectacular but you probably were happy to have it. philip mena. >> good point, very grateful for

that >> preuber we had to get around somehow. >> thanks, mom, thanks, dad. coming up, toronto no, what the ferrari formula 1 team sent out that has people shaking their heads. and can you guess today'mys? the stock up nearly 50% over the last year alone but currently now is in correction tweet us your guesses @cnbcwex or @sullycnbc. she thought it was a fire. it was worse. a sinkhole opened up under our museum. eight priceless corvettes had plunged into it. chubb was there within hours. they helped make sure it was safe. we had everyone we needed to get our museum back up and running, and we opened the next day. - anncr: as you grow older, -your brain naturally begins to change which may cause trouble with recall.

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all right, welcome back. time for the big 5:30 or 5:29 reset, and a big warning for the world's biggest hedge funds. we'll tell you what's g up at n. saying sorry, the ceo of qatar airlines apologizing for comments about women details ahead. and cayou guess today's mystery chart? the stock may be sounding off a big wae global economy what is that stock and why does it matter? send us your tweets as we roll on right now all right, welcome back. thanks for being with us still on cnbc. i'm brian sullivan rbi this morningave a very it has to do with the stock market and it is sure to get trump lovers and trump detractors all fired up in their own way, because what's better than getting angry about politics at 5:59 in the morning? let's get a check on what's leading cnbc.com facebook confirming several

chinese companies have access to your user data the social media giant admitting it has data-sharing deals with at least four chinese companies, one of which is chinese telecom giant huawei, which has been flagged by u.s. intelligence as a potential national security threat in other words, your facebook data may have ended up in the hands of huawei. china's zte reported signing a preliminary deal and lifting a ban from buying from u.s. suppliers. that would get the firm back into business. remember, a seven-year ban was placed on zte back in april, this after it broke an agreement by illegally shipping ods to iran and north korea. and tesla's shareholders have e-long-ated musk's run as chairman a struck-down proposal to shake up the board by splitting elon musk's job between ceo and chairman e-long-ated. no here's how your money and investments look now halfway through the 5:00 a.m. hour in new york stock futures are up triple

digits the dow indicating a jump of about 100 points the bond market showing a yield asian equities hher across the board, led by, well, there's the bond -- i think i move too fast. there we go. i'll slow down the hang seng is up 0.5% as for the broader markets, let's get a check on oil oil is higher as well. the u.s. dollar is slightly weaker against the euro this morning. that is kind of reversing a recent trend that we have seen get a check on the price of gold, if we may. there we go. the price of gold is down 0.2% cryptos, they were higher when i woke up this morning, but now they are not moving much at all. bitcoin is down 0.1%. all right, here's a pretty incredible statistic for you the number of job openings is now officially greater than the number of people looking for a job in america that is the first time this has ever happened since the data began being reported 18 years ago. job openings rose to 6.7 million

at the end of april. that is more than the 6.3 million americans who were officially unemployed during that time. joining us to mabout this and the overall economy is joe lavorgna, chief economist at natixis. we could get into the prospect of people not looking for jobs and the long-term unemployment, but we get on the point it's a big story. but to me, it signals one of two things number one, the economic expansion has got to slow because we're simply going to run out of workers or number two, wages will havett a good worker, you have to pay him or her more. which one do you think it is >> probably more of the latter, brian. but here's the thing, if productivity picks up, and i believe it will, in part because of the recent tax law -- if productivity picks up, you produce more with less, so growth doesn't have to slow, and you get faster wage growth

in fact, there is no mystery to me why wage growth has been weak it's not because the labor market isn't tight enough, it's because there's been so little productivity in fact, if you go back and look, when was the last time we had strong '90s that's also when we had strong productivity if it was about tight labor markets, japan would have the highest wage rates and inflation rates in the world, and they don't. they've got very little productivity, so they have very little wage growth. >> okay, so, is it ultimately a negative sign for the u.s. economy longer term? >> it's not a negative sign, because if we get, let's roughly 1% growth in the population, which is about where the long-term trends are, and we get productivity growth, brian, say at 2%, that would give us 3% potential, you know, one plus two is three that's the long-term average, or roughly the average since the postwar period to me, that's very doable, again, if you get productivity

growth, if companies can figure out ways to operate more efficiently, if they could take some of the capital they're investing in, this capital deepening, and applying it in a way to make their workers more productive, that really becomes a free lunch in the sense that we could produce more, and at the same time, workers are reaping some of the benefits from it. >> were you surprise headline i mean, it's getting a lot of atn,fully so, joe. but you know, you do wonder how much longer this economic expansion can last ray dalio is out this morning saying that 2019 could be a very difficult year for the global economy. of course, listen, to be fair to mr. dalio, arguably one of the richest and most successful, you know, financial minds in human history, a l of ave been calling for a slowdown for a long time and they have been wrong. >> right so, i wasn't surprised i actually mentioned in a few days ago that we were about to surpass -- openings were about to surpass unemployment, so i was happy, not surprised by it certainly has a lot of validity,

is if you look at the yiel curve, it doesuggest that if the fed continues onrse it is anthrve inverts r year, that late '19, early 2020, could be a difficult year so, if that's what he's referring to, that is a concern. but again, history hasn't been written yet and a lot will depend on what the fed does. i've been arguing for a while the fed would be very smart to just let the economy run hot, stop at 2%, let the balance sheet, which is a quantitative tightening, t rollff, and leave well enough alone. i don't know if they'll follow that script. if they don't, then ray's points are very concerning and possibly correct. >> is the ten-year bond yield or notto end the year above i mean -- >> no. look, brian, you know what's interesting -- >> no? are you the only one in the world? literally, i'd ask my grandma, where's the bond yield it's going to go above 3%. everybody has said that. >> look, brian, that's why it

hasn't gone -- that's why it hasn't made a sustained move above 3%, for that exact reason. if you look historically, in 19 out of the last 25 years, the ten-year note has peaked by the end of june, and there are technical reasons for so, i would not be surprised if the ten-year hit the high for the year does it mean it can't go up near 4% at some point no, but it probably isn't going to happen this year, especially with the yield curve flattening and with inflation pressure low. and by the way, if we go above 3%, as we did recently, we see a lot of buying. investors come in. they really want those assets at those prices and as you know, brian, the rest of the world is yielding much below where the u.s. is. even though rates are extraordinarily low here, they're retractive for everybody else >> we do forgot that we did break above 3%, i mean, like 3.01% in i think late 2014 is that kind of a similar situation now, even though it's arguably a stronger economy now

than then? >> the difference then is, if you look at what the market -- the market had priced by early '14 had priced a significant amount of fed tightening and i mean, in some ways, there was more fed tightening priced into the forwards then than there is now so, there was a lot of room for the market to rally. so, 's different the reason -- one of the reasons the curve is flattening is because people believe the business cycle's much more mature in other words, since 2014, we've met a lot more pent-up demand we've grown, as you've highlighted. we've taken a lot more workers, you know, unemployed workers, fewer of those people exist, so there are reasons why maybe the business cycle is longer in the tooth. but i ultimately believe, brian, the fed dictates the cycle it's aboutiquidity and the balance sheet unwind and imcting finang of rates, it's it could impact lending and liquidity provisioning the fed has to be very careful here powell to me is a pragmatist, so i'm optimistic on that regard,

he won't overdo it, but we will see. le thioff?think the ecb will be >> great question. look, everything about this session has be elongated everything's taken longer than we expected to play out, so i think the ecb likely being aggressive and hiking is probably premature, so i don't know if they'll pull it off, but i wouldn't be so pessimistic on rates that the ecb's going to be hiking i mean, their inflation rate is about the same as it was when they began negative rates four years ago. so, they're going to be pretty easy for a bit longer. >> joe lavorgna of natixis we could do an hour's worth of stuff in five minutes, and we appreciate it. >> early in the morning. >> no, it's late if you're in dubai, it's like midday. >> that's true. >> it's "worldwide exchange," joe, worldwide thank you. gog you.nd corrected, br >> i love correcting people. is instagram about to take on youtube what the social media company did that can shake up video. anwe're going to make your rbi great again. the most random but interesting

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being with usme bor 5:42 here on the east coast. and the futures looking pretty solid this morning, up 102 as an implied open nasdaq and s&p also on the rise. interestingly enough, bond yields are also on the rise as well normally, stocks and bonds may be going in different directions not the case and you just heard joe lavorgna

say he thinks the ten-year will yield under 3% at the end of the year he may be the only person in the entire world who thinks that. ime for this morning's top trending stories with another entirely unique and wonderful individu, e singular contessa brewer. >> i may also say things that i'm the only person in the entire world to do so. >> that's what i meant, in a good way. >> out standing in my field all alone. qatar airways' ceo is apologizing for sexist remarks he told reporters his job had to be held by a man because it is a very challenging position. facing big blowback. the ceo claimed the comment was a joke and offered his heartfelt apology. apparently, the reporters in the room said no one was laughing. so, is it really a joke? >> who would laugh at that it's not funny you know what's funny? elongated as the musk ten-year joke that comment was not funny it's a very challenging job, therefore only i can do it >> bless his heart

he does point out that -- >> what's this, 1978 >> he does point out that 44% of hiairline's employees e women and that he has -- >> hey, that's almost half. >> and when asked whether he would embrace, maybe embrace i the wrong word here -- whether he would welcoemceo, he said he would welcome a candidate that he could train then to replace him. >> even the apology was flawed. a new atndee has been announced for next week's summit between president trump and north korean leader kim jong-un. it is, no surprise here, basketball hall of famer dennis rodman rodman has visited north korea over the past few years. he's -- multiple times he'sstablished a relationship with kim jong-un, and he also has a history with trump as a contestant on "celebrity apprentice" in 2009. the summit will take place in singapore. i just want to point out that at one point when rodman went to north korea, trump tweeted out that he was either drunk or

delusional by suggesting that trump would be invited to go along with him this was in the past >> well, listen, mr. rodman, i hope he's doing well he was obviously a resident -- he lives right around here, dennis rodman, at least temporarily. that he cago and may he can get something done >> i mean, maybe he should get some of the credit i don't know. look out, youtube, instagram is coming for you. the facebook-owned platform is getting ready to launch a platform that will allow videos as long as an hour long to be posted. >> nobody wants that nobody wants that. >> currently, instagram users are limited to 60-second videos, which i think is about right >> it's 45 seconds longer than my daughter's attention span >> and yours is 20 the move comes after a survey showed that youtube was the dominant social media network among teenagers, and as you know, most youtube videos are longer than 20 seconds or a minute they usually run on for at least three or five.

>> and even that is pushing it, if you will. >> i mean, if you can really edit it down so that you're getting in a lot of jokes in three minutes, it's pretty good. all right, i love this story. this is my favorite story of the day. >> maybe you should read it. >> no. >> ferrari's formula 1 ttter account seems confused ahead of the canadian grand prix. ferrari posted this video the caption "we are ready for montreal!" that's how they pronounce it in canada >> oh, they do >> the only problem is the video shtonto's skyline! yep. that's the lake that -- >> we're coming for you, montreal-to. >> by the way, the longitude is for montreal, even though it's showing toronto -- >> they even have the graphics that say city montreal they did that. that's not our graphics, folks we know the difference between tonto, which is canada, and montreal, which is france -- >> so, in response, a lot of people were posting pictures of cities like, you know, venice and saying, welcome to chicago >> well, they do have canals in chicago, sort of, the chicago

river, kind of no >> mean, it doesn't bode well for their making friends in montreal >> we're coming for you, saskatoon! but we're actually showing regina contessa, thank you very much. >> you're welcome. still ahead on "worldwide exchange," today's mystery chart revealed why this stock could be a big warning for the overall economy. again, you've got time to guess @cnbcwex we'll bring you the answer when "worldwide exchange" comes back.

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to their retirement savings. that's because they have a shield annuity from brighthouse financial, which allows them to take advantage of growth opportunities in up markets, while maintaining a level of protection in down markets. so they can focus on new things like exotic snacks. talk wuris about ties from brighthouse finan- established by metlife. all right, welcome back. futures indicating a jump at the open, but the world's biggest hedge fund is out with a big warning for you. ray dalio's bridgewater associates putting out a client letter recently, saying, "we're ost all financial the letter goes on to say that markets are still pricing in what they called goldilocks conditions, compounding the risks. bridgewater currently manages a cool $150 billion in assets. all right, time to reveal today's mystery chart, and it

kind of goes to that story now, afterallying 70% last year, this stock down 3.5% year to date. it is in correction territory from its highs do you know the name of course you do it is the cat in the canary mine, caterpillar. joining us now to talk a this stock may matter more than just to caterpillar investors, matt bailey at miller tabak. i thought this dove tailed your piven accidentally very well with that dalio piece, because why do you think that caterpillar may tell a bigger story about the global economy than just being a single stock >> well, i mean, part of the thing is that, you know, at the end of last year and certainly tht part of this year, ybody was talking about synchronized global growth and how this was going to be so great for the stock markets all over the world, not just here in the u.s. and you know, it's kind of interesting, because lately we've heard a lot about how the russell 2000 has made new highs, but the other half of that, of course, is these multinational companies, which has been

underperforming. i mean, we talked about cat tractor. i think that's kind of the poster child for this. and its chart's not really a disaster i mean, the stock's underperformed as you mentioned. it hasn't broken below its trend line going back to the 2016 lows it hasn't made a major low here below -- it's still 6% above its march lows however, as this becomes more evidence, as we get more details, you look at recently we saw the ihs global manufacturing index hit a nine-month low, it just kind of shows that the whole thing that everybody was talking about just a few months ago in terms of global growth isn't what they thought it would be it's starting to slow down a little bit more. and some of ocith multinational exposure i think are going to have a lot more down side potential here and you'll see more rotation away from those names and probably more into the kind of small cap, more domestically centric names. >> yeah. you know, ray dalio's saying we're bearish on pretty much every financial asset. so, a, what do you think of his comments, but b, if you're right about the chart on caterpillar,

that would kind of play into what he's saying, be careful heading into next year >> yes i mean, it's kind of funny, because one of the things people keep talking about here is that, geez, the economy looks fine, and you know, it's growing here in the u.s., and therefore, we should be very bullish the problem is, whenever the fed stts to tighten, you know, we eventually see cracks in the system and the problem is, it's something we talked about last week, where it exposes some of the investments that had developed during the period when interest rates were going lower for so long. and the thing is, not only does it expose weakness in the economy, but it also creates a weakness in the economy, because suddenly, you have these mal investments that come to the forefront. and sometimes it's just small things like that everybody on one side of the boat in the short vol trade,ther issues, it showshe people have done illegal things, et cetera and when those have to be unwound, it has an impact on confidence in the market, and of course, liquidity in the system. so, i definitely agree,

people -- you know, he's bearish on everything. if you want to be bullish on something, maybe it's going to be on some of the flight-to-safety trades. >> like what, gold i mean, how safe are you getting, matt, like cash under the mattress type safe or just buy utilities? >> one of the things you just m the previous segment, was talking about how interest rates are going to stay below 3% and almost nobody's looking for that what do you gewhen you have a flight to quality? it's kind of funny, because every time we ve a big problem in the marketplace, the y thatl is frequently caused by a rise in interest rates, but then once those problems come to fruition, the interest rates roll back over and go back down. so, as interest rates go down, obviously, bond prices go up so, on the treasury side, treasuries could actually be a good play. >> wow, treasury's a good -- is that why -- are you also then -- i mean, joe lavorgna kind of gob smacked this saying e yield would end under by the end of the year and i thought he was the only person in all the land that thought that are you also in that sub 3% by

the end of the year camp, matt >> you know, it's always tough to put an exact date on it, but i think if we have the kind problems that i think we will have and that ray dalio's talking about, the flight-to-safety trade will come to fruition and we will se lower interest rates and they will stay well below 3%. >> wow i thought there was one. there's two. okay, i want to switch gears t as you put out, you have one of the best couple notes every day. by the way, i urge everybody to read it. one of the smartest guys out there and that's why we appreciate you coming on so early. the market's done pretty well, nasdaq record highs. but are you worried that once again everybody's piling into, you know, the same five or six stocks netflix is up 35% more than the next highest stock this year in the nasdaq 100 does that make you nervous in any way? >> yeah, it definitely does. it's kind of interesting, because again, it's more than just the f.a.n.g. stocks, so i'd say five or six names, so it's ten names. what's the difference?

it's still a bunch onames. u also look at the iwc, which is the microcap etf, and that thing is beginning to outperform again. it shows that people are kind of too willing to take risk i guess is the point and when you get such a narrow couple of names, it definitely says that we're getting towards the end of the rally, rather than, you know, in the middle innings. so we're looking more in the eighth or ninth inning. >> yeah, eighth or ninth inning. t be i t a trader who basically said to me, if things start to roll over, you should short netflix and tesla and walk away with money in the bank is it that simple? >> well, of course, nothing's ever that simple the one thing is that it's funny because the netflix chart l looks quite good so, i think the whole market's going to have to roll over before some of these high fliers start to get hit the problem is, he's absolutely right. when the market starts to roll over, the high fliers, which have big valuations, extraordinary valuations, they get hit the hardest. not only that, they tend to be sources of cash, so people just

dump out of the names so they can raise it to cover margin calls and things like that. >> matt maley, miller tabak, one of the smartest guys out there and we appreciate it thanks, have a great day. >> you, too. finally, your morning rbi. this one we have to fully admit smteop out there on the r, internet by no means are we claiming this, and maybe we'rhay about that okay take a look at the biggest market cap companies in america. of course, you've got apple, you've got alphabet, which is known as google, you've got microsoft, and you've got amazon, okay but why don't we swap that order? you've got microsoft you've got amazon. you've got google. and you have apple what does that spell maga that is certainly random, but it is interesting it means nothing and we even sort of sacrificed alphabet for google. other people have done the same. but we just thought on this day, it would be kind of fun for you to have that one at the office today. just go in and talk about maga and stocks and see how people

respond. have an awesome day. see you tomorrow x"s xtk bo ine ♪ hadarlin'., can this much love be cleaned by a little bit of dawn ultra? oh yeah one bottle has the grease cleaning power of three bottles of this other liquid. a drop of dawn and grease is gone.

good morning a vote of confidence for elon musk tesla shareholders say he can keep his chairman role we'll show you what he said about model 3 production as well. and facebook is under fire again. this time, the social network confirming it has a data-sharing agreement with a chinese firm that's under scrutiny for national security reasons. and hundreds more ho destyed in hawaiin the most devastating day since the kilauea volcano first erupted. it's wednesday, june 6th, 2018 and "squawk box" begins right now. ♪ ♪ six in the morning, i'm still awake ♪

>> announcer: live from new sleeps, this is "squawk box. ♪ good morning, everybody. welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin, who is back. good to have you back. >> back from satsle. i'm learning about all of the things that happened during the commercial breaks. >> yes. >> and we're learning about -- >> it's always a story itself. what happened behind the scenes in seattle >> your and your management of the entire process i told andrew it was great. >> very well done. >> and it was a lot of work for you. i said it wasn't awful -- >> which is high praise. >> exactly. >> you know, that was hard he had to fly out there, you know -- >> go and watch everything that happened -- >> massage all the people. and starbucks is at a, kind of critical juncture. and it's hard whenever you los