it is 5:00 a.m here are the five big things you need to know trade fight. china says the u.s. is opening fire on the world with trade threats. president trump calling on opec to do more to stabilize markets and reduce oil prices now. u.s. stock futures pointing to a higher open on wall street. investors return for the fourth of july holiday. a woman arrested after scaling the base of the statue of liberty. president trump's search for a new supreme court justice now down to just a few people. that announcement will be on monday it is thursday july 5th, "worldwide exchange" begins right now.

♪ >> all right welcome. good morning or good afternoon or good evening wherever you may be watching. i'm brian sullivan thank you for being with us on "worldwide exchange. your money and investments looking good dow futures indicating we're likely to rise 93 at the hope. the nasdaq and s&p are also higher futures are higher despite the fact that we are now less than 24 hours away from the first real imposition of tariffs against china. a new tax on 34 billion worth of chinese imports set to go into effect tomorrow. china continues to threaten retaliation. eunice yoon has more on the trade war countdown. >> thank you very much china is preparing for the fight. the chinese said they would launch their tariffs at midnight on friday to match the u.s.'s

12:01 start time however because of the time difference, 12 hours ahead of you, the chinese decided to change that and instead the government said it would delay the tariffs until immediately after the americans imposed theirs china's cabinet said china will not fire the first shot so china will impose the tariffs around noontime in beijing, an unusual practice it shows how sensitive the chinese are about not appearing as the aggressor they want to make sure they look like the innocent party, the good guy in the fight with president trump. in about 24 hours the tariffs imposed could be 25% of tariffs on $34 billion worth of goods the u.s. will focus on high-tech, and china will focus on farm goods on states that supported president trump. there's been a lot of speculation as to what else the

chinese will do in order to protect themselves during this time there's been speculation about whether the chinese would de-value the currency. also another discussion that's going on is whether or not the chinese will loosen policy we're already seeing that as of toda today. >> so they're changing the time of the poim signaimposition of f so they can say you did it first, america >> that's right. the commerce ministry was warning that the u.s. is creating a problem not only for the whole world but for itself as well. they said the united states is shooting itself in the foot by doing this because a lot of the goods that will be affected are also in the international supply

chain. we know a lot of companies are preparing by bracing for the fact that they will have to pass on the koths he costs to custom. >> so it's just under 19 hours now, 12:01 a.m. eastern time u.s. >> but wloho's counting. >> but who's counting. thank you very much. the president turning up the heat on opec as oil prices remain above $74 had per barrel this morning in a tweet he called for opec to reduce pricing now this comes days after the u.s. and saudi arabia did discuss the possibility of the kingdom releasing more of its own crude to dampen rising prices. it's a move that consumers here will want to hear as gas prices

rise keep in mind the pressure may not matter because opec may be powerless here for a number of reasons here they are. number one, opec has a deal. it can't just increase production without effectively breaking the deal it just made two, some opec members can't raise output, like venezuela they are pushing as much out as they can because that opec deal covers all members it may be tough to push through changes three, libya may be much worse than first thought the daily output is down huge due to fighting at the ports opec nations may not be the only ones to blame for rising prices. canadian output is down by 350,000 barrels a die. and five, continued trucking issues meaning we in the united states can't add more production from the permian basin

all of this at a time when demand is strong so demand up, supply down, so this may not just be an opec story. we'll have more on oil in a bit. let's talk about all of this and more with gina sanchez you thought we would bring you on to talk about trade what do you think about oil? the president going after it that's a big tax on the u.s. consumer >> it is the general rule of thumb is oil prices above 80 would be demand destructive. that's the price that opec will get concerned about. you really hit the nail on the head most of these issues are issues that are really out of control at this point. i think what opec is coming to realize is that they had their foot on the brake for two long in terms of production, now with the iran sanctions, coupled with

libya and venezuela, then adding the outage in canada, all of those things adding up the u.s. and saudi cannot take up the slack by increasing production quickly enough. >> i didn't realize you were in los angeles where it's 2:06 a.m. god bless you. that's how good "worldwide exchange" is appreciate it. but, you know, you are out there in the driving capital of america, gas is already expensive. we're talking so much did trade tariffs which will not effect 99% of the country but gasoline does >> you're right, brian you know, the big issue is, you know, i think the old rule of thumb was a penny at pump has an enormous effect on consumption it's true. this is a tax on consumption, and this will hit disposable income we do have to keep an eye on that right now we have been in an

expansion that has largely been driven by trade, now we're in the midst of a potential trade war that could happen at midnight tonight that's going to create headwinds. you add to that tax on, you know -- a tax through oil, and you're talking about getting to the end of this expansion more quickly than anyone was anticipating >> do you think that's the case, we are coming to the end >> i do think that's the case. you can hear the music a bit >> if you look past the tax stimulus, nobody exteblpects tht last more than through 2018. by 2019 that will be a thing of the past at that point we will start to slow as an economy that doesn't mean we're going into recession, but just a regular cyclical slowing if you pile things on to that, you will put pressure on that

slowing. and we still have not normalized rates enough, where if we hit a recession we can battle it >> do we just start to dial back on risk? get more safe and boring maybe >> right now safe and boring is probably not a bad place to be we're anticipating a rotation towards more defensive stocks. u.s. has been a big winner, everyone else has been a loser in this sort of agenda that we've been aggressively going after. however if you look june was the first time that value stocks outperformed growth stocks i think we're seeing some elements of rotation, sector rotation as well as growth value rotation that tells you that people will hunker down and get more defensive as the tax

stimulus starts to fade. >> gina sanchez, i would say good morning, but it's more like good evening appreciate your time thank you. time now for the top corporate headlines. contessa brewer is here now with those. >> your big individual stock stories include zte. the "wall street journal" reports that the chinese firm named a new ceo to comply with a deal with the united states to get a supply ban lifted. in april zte was forced to hal most operations after the u.s. banned the smartphonemaker saying it failed to discipline executives who conspired to evade sanctions on iran and north korea. praxair agreed to sell the majority of its gases business in europe for billion. that deal will help praxair and germany's linda move closer to completing their $83 billion merger creating a global leader in the distribution of the industrial gases.

barnes and noble fired its ceo for violating company policies the decision was not tied to any potential fraud. the cfo and other executives will share the ceo duties until a replacement is found >> barnes and noble may need to release more information on that story. see you in a bit. on deck, 19 hours to go until tariffs take place against china and them against us, and why europe may be at a bigger risk. and more on oil's recent rise and why trump's twes etmay be powerless to stop it. ain, ain, helping keep shoppers safe. this is a financial transaction secure from hacks and threats others can't see. this is a skyscraper whose elevators use iot data and ai to help thousands get to work safely and efficiently. this is not the cloud you know. this is the ibm cloud.

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over here. xfinity. the largest gig-speed network. . welcome back your money and investments are looking good to start this thursday morning stock futures up about 90 points oil is ticking just a bit lower today. the president is sending out a tweet late yesterday demanding opec cut crude prices. joining us now is mike rothman, head of integrated oil research at cornerstone analytics, also a man who gets on a plane and goes to the opec meeting. you put out a note to clients saying you think the situation in libya is worse than many had thought. how come >> most people since gadhafi was deposed expected libya to be stable, and in fact their production resilient

it's not anywhere close to where it was before he was removed, but there's basically two different governments competing with nine different militias there's been a lot of volatility, and recently port closures and 80% of their flows have been affected literally 800,000 a day of what's been 1 million barrels a day of production. this is a loss of output at a time when there's other supply issues and going into the second half of the year when inventories are expected to draw meaningfully when we were at opec, we asked the libyan oil minister, i asked where are you at he said we'll be back up and running in a couple of days. obviously that's not the case which leads me to think they don't have a handle on what's happening over there >> it's the equivalent of locking a bunch of 16-year-olds

in a room with brown liquor and loaded weapons and saying i'm going to leave and go to the movies and somehow thinking it will be okay for us, people looking at the oil bounce, when you typically have an outage, you may not be that worried about it let's say if this was 20 years ago or 25 years ago. the ability to make up for these disruptions is very limited. this is the background issue and the frustration in the president's tweet to opec. their ability to dump oil into the market is limited. only three countries can do it libya going down venezuela having problems, issues in nigeria, canada. this is all hitting the market at a time when the ability to offset those losses is extremely limited. >> it is you make an important point. at the top of the show we walked

through -- i understand the optics the president has to say i'm trying to bring gasoline prices down they hit everybody, especially the lower income americans harder however we also need to make it clear, it sounds like what you're saying is this, opec has a deal they simply -- saudis cannot go out and raise output on their own without effectively breaking that deal, can they? and that would tick off iran more at a time when the turmoil between those two is heating up. >> there's two parts to that the opec deal which you identified and the ability to push that oil out. this is again not like after iraq invaded kuwait and you were able to make up had had billion barrels day of lost supplies within five weeks. that's a dot of time in the chain. this is different. there's the deal itself, and

then there's just the ability. at this point the notion that the saudis will be able to push 2 million barrels a day of additional supply to the market is fiction the single highest monthly number they have ever produced ever is only about 650,000 barrels a day above what they were recently doing. that's the big issue the deal is secondary. do you have a number of countries facing problems. >> and maybe the saudis are perfectly fine with $70 oil. >> saudis at the recent opec meeting, if you dig down into it, had no intention of doing anything to push down the price of crude their goal, if you look at their budget, is to get the price of oil in the high 80s, mid 90s their minister, khalid, made that apparent 16, 18 months ago when they instituted the cuts

back in november that was their goal. they didn't give a price target, they gave an inventory target. that price is in the 88 to $96 range. there was no change at the recent opec meeting about that goal that's lost on people. they wanted to make the deal look like it would assuage concerns, but they didn't want to do anything that would push the price of oil down. i don't know that subtlety came across, but that was the difference between the paper barrels and the real barrels, and whether those would be enough to actually dampen the price of crude, which for us, that was not going to be the case there was no interest in doing that >> and it was a good call by you guys appreciate you joining us so early on this thursday morning talk to you soon >> thanks for having me on

let's switch now to trade. all the talk about a trade war with china really has rattled the markets. but could europe be the bigger risk keep this stat in the back or the front of your mind in 2016 the u.s. exported about 170 billion in goods to china. but we sent more than 500 billion to europe. some of that risk as president trump talks about auto tariffs let's bring in peter spiegel from "the financial times. i look at your fine paper online every single day i see china and trade in the headlines. the amount of stuff we send to china is relatively small, especially compared with what we send to europe >> in great fairness we put german automakers on the front page quite a bit of late if you look, the market to watch here is the dax.

europe as a whole, yes, the eu is the world's largest market if you take it as a whole the exporting engine, the trade engine of europe is germany. if you look at the dax, it's down significantly on the month. it's up today a bit. but that's sort of the backlog of concern over the german political crisis you've seen a huge downfall over the course of the last month in the dax. year-to-date also hugely down, volkswagen, daimler. these are the big german manufacturers that all americans know about and they buy. these are the ones that will get hit. it's not just german exports to the u.s. but german cars made in south carolina and exported. the volume of trade, the value of those exports, because a lot of trade from china to the u.s. is low value, but the value is much higher end, it's autos.

the other thing which i think this has hit late in peoples consciousness is trump has touted this as the big trade war on china he talked about china. initially europe was almost an after-effect it was sort of like collateral damage he announced steele a d steel am tariffs, and then there are no steel and aluminum tariffs, then suddenly everyone in the u.s. woke up and said do we have an opportunity here to go after the europe europeans? he's obsessed with cars. i think you're right. the markets have paid attention to this and the reason the dax is down so much is because of this wakeup. >> that's why we took our show to the port of charleston, south carolina if you go to charleston, you look over a fence near the

battery, you will see about 5,000 bmw x5s. they're all made in greenville shipped on a train and shipped out of the port of charleston all around the world the x5 is not made in germany. it's made in the united states i don't know if people understand that as much. is there a growing sense of fear is there a growing fear among europeans that the president will ratchet up his attention there? absolutely it's been heightened fear for three, four months the car issue, particularly for germany, is just existential so the amount of -- because germany has a huge influence in brussels, the ratcheting up of the brussels machine -- and not to defend your criticism, the eu

is preparing 3$300 billion worth of retaliatory tariffs on the u.s. if trump goes ahead with the auto measures. so this could be the big trade war because of the value of transatlantic trade. you pinpointed an important thing for markets to keep an eye on >> your cover story is one we will talk about after the break, how regulators may be going after our tech companies peter spiegel, appreciate it all right. still ahead, amazon taking a page out of the toys "r" us or sears handbook what the retailer is doing to keep some holiday nostalgia alive. ick around (siren wailing)

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(vo) progress is in the pursuit. audi will cover your first month's lease payment on select models during summer of audi sales event. welcome back here are your top headlines. it was a celebratory affair in the nation's capital for the fourth but the work continued behind the scenes with president trump continuing to pour over his top candidates for the supreme court. the list narrowed to seven candidates secretary of state mike pompeo is bound once more for north korea. is he visiting pyongyang for the third time in the last few months as he works on parts of that celebrated signing document last month several media outlets report the

s kim regime increased activity at some nuclear sites. a woman scaled the statue of liberty after an i.c.e. rally. the woman faces several misdemeanor charges. turning to thailand where we are getting new images of the soccer team and their coach who have been trapped in a cave for nearly two weeks now they are seen here smiling and laughing with navy divers. while they're all okay now, the threat of monsoons is forcing rescue teams to come up with different ways to get them out and fast back to you. >> that's an incredible story. the bravery of those british divers that found them, that's not been heralded quite enough let's pray for those kids. still ahead, big tech under fire, why europe may swing the axe harder on facebook, google and others that story when "worldwide

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futures pointing to a higher open as investors return for the fourth of july holiday big tech, big risk the stat on why just five stocks you know really do run the entire show. how can anybody eat 74 hot dogs in five minutes don't know, but it happened. that and more on this july 5,

2018 ♪ welcome back thank you for being with us. i'm brian sullivan we have a lot to get to today. let's check your top headlines with contessa brewer >> china says the u.s. is opening fire on the world with tariff threats the nation adds it will not fire the first shot but chinese tariff also kick in immediately after the duties on chinese goods start. president trump demanding that opec do more to stabilize oil markets. this comes days after the discussion of maybe the kingdom releasing more crude to dampen rising prices. hollywood closing out a record quarter with more than $6 billion in ticket sales putting

it on pace for its best summer since 2013 jurassic world fallen kingdom leading the charge, expected to generate more than $1 billion i ticket sales by the end of the wee week >> i want to take you back to 1984 when i say this line "he drew first blood, not me." trying to do the lip thing you may be off still, a lot of people taking the rest of the week off sounds good. markets look good now. dow futures indicating a jump of about 96 at the open you may say it's because of light volume, but who cares. makes your investments look better joining us is bill stone glad a couple of us are working. thank you very much for joining

us trade is the big story 18 1/2 hours until the tariffs with china kick in do you think the fed and rates are a bigger risk than trade >> i would say they're the two biggest risks. i don't know how to really set the probabilities of them. at the moment the fed is not necessarily the bigger danger. i put the fed out there as if they do have it set in their mind, no matter what happens to continue the hikes, then perhaps they become the bigger danger. at the moment with the u.s. economy growing at something like 4% in the second quarter, i think it's fine they're planning on hiking twice. the bigger issue is if they have it so set in their mind and maybe the global economy loses momentum, maybe partly because of the trade issues, and they keep doing it, then it could

become a problem i think it's one of those things you have to watch but it's not showing up yet it's clearly trade the issue that's haunting. >> it is the end of every show here we do random but interesting i think rates would be boring but important. interest rates are slow moving but they're a super tanker, are they not they move very slowly but it moves everything in its wake we are in an interest rate cycle we have not seen for basically 14 years the other thing is if it does not make you nervous that the yield curve is getting flatter, and that's really the best way to predict future recession, that's where i'm keeping my eye. doesn't mean for sure it will

happen there's a lot of reasons to be more doubtful. i will throw in, since we got the ram bo quotes going, i will say if it does invert, i will say it's over, johnny. it's over. >> have invert the yield curves predicted five of the last recessions it's something to watch, but there's no per mekt market pfec predictor. do you think we will be in recession in 2020? >> maybe 2020. i thought you would give me 2018 or 2019. >> this year we're rocking cooking with gas and everything els else >> famous last words, i'm not nervous at all for this year by 2020 it's fair to say, who knows out that far, but i wouldn't put it out of reach especially if we are going to continue to see accelerated

growth what ends a cycle is typically having overheating we have been slow cooking along. if you really get it going, you have to start getting nervous about the future recession >> i want to see jay powell point back to janet yellen who raise td rates, she drew first blood. have a great day appreciate it. >> you, too. >> president trump will head to europe next week for a nato summit ahead of that gathering hadley gamble was able to catch up with the nato secretary-general this morning in a first on cnbc interview. it's a big one hadley, what did you learn >> as you know we have had no shortage of tough talk for president trump when it comes to nate so allies he says the united states will no longer be the world's biggie tank bank and that ally also have to pay their fair share when it

comes to defense spending or else i had a chance to catch up with the nato secretary-general and asked how this will play out especially against this back drop of europe peep tariff an ta trade war. >> you're right there are some real disagreements on issues like trade, but also on climate change and the iran nuclear deal these are serious disagreements. at the same time there's been disagreements between nato allies before. the strength of nato and the success of nato is we have overcome these difference, and again and again proven that we're able to unite around to protect and defend each other. i'm confident we will do the same this time >> this is not the first time that the president has talked tough when it comes to nato. pushing around nato allies literally is something that he came under serious criticism for

the last time around a lot of questions on whether that tactic will work at this point, especially given the fact a week after the nato summit he will be meeting with president putin. one question there is will crimea come up will there be talks with russia. will the status quo in crimea be the same a lot of questions on what happens next down the line with president putin and this will be talked about no doubt next week in brussels. >> i think you're referring to the time when the president shoved aside the serbian nato minister, literally pushed him aside. >> the georgian prime minister >> to get to the front of the picture there. the president has a point when he talks about how america spends a disproportionate amount for nato, does he not? >> he does the question going forward is are they making these

commitments fast enough? when i asked the secretary-general about this, he said to be honest i have to get on them myself, there is progress being made, but it's slow progress. we continue to push and hope inevitably they respond. >> hadley gamble, thank you. >> still to come, the facebook fallout. the company's reputation under pressure what the latest federal investigations might mean for the stock and the future of facebook

welcome back time for the top trending stories. we get to talk about some dude who ate 74 hot dogs. >> it almost seems like groundhogs day >> if you ate 74 groundhogs in ten minutes that would be something. >> joey chestnut has extended his win streak at nathans hot dog eating contest he has taken home the championship for 11 straight years. what's in it for him >> money he makes like $1 million a year going around the world eating stuff. >> as brian already said, ruining the big moment here, he ate 74 hot dogs in ten minutes bun included ten more hot dogs than the runner up. he doesn't have to get to -- he

could have stopped with one more hot dog than the runner up no shove them down. >> here's my basic question. you can't answer this. to any doctor out there -- >> dr. brewer. >> what happens to your body there's like 30,000 milligrams of sodium. 22,000 -- there's got to be a physiological effect >> but apparently they are special. they have special digestive systems that allow you to absorb that animal fat and salt and carbs. >> what's the rest of joey chestnut's day like? >> people are not even having breakfa breakfast yet. >> sitting on the couch groaning >> amazon is taking a page out of toys "r" us book. remember this when you got to have a catalog to look at ahead of christmas

amazon is planning to mail a holiday toy catalog to millions of homes and they'll hand them out at whole foods as well amazon published a digital toy catalog for the past decade but this time it's aiming to distribute actual mailers. it's trying to get into brick-and-mortar sources close to amazon say they were looking at taking over some of toys "r" us physical facilities >> i like that you circle the stuff you want. it was the best part of the year >> and it's hard to do with 4-year-olds with amazon online >> unless they have their own account. contessa brewer, thank you very much a red flag for tech this morning. the ft reporting that german telecom regulators are setting their sites more on the u.s. technology sector, this at a time when facebook's privacy questions continue to grow john oswald joins us now

it is a serious topic. it's the front page story in "the financial times." how severe do you think the regulatory pressure, it will become on facebook and others in the next few weeks and months? >> thanks for having me. good to be here. thank you. i guess if we're in the business of movie quotes, it's like how do you solve a problem like facebook yes, it's certainly heating up there's almost like so many things that are starting to come out of the woodwork that you wonder are facebook really on top of this? what else will happen? in a regime with general data protection regulation in europe, it's an environment where anything like this starts to get serious quick. it raises some interesting governance challenges as well for facebook which has a huge opportunity to deal with and get ahead of >> but it's amazing. as you noted to your clients,

facebook has relatively come out of this initial round unscathed. the stock is off a little bit, but still well above where it was a couple months ago. why do you think that's the case >> they played a traditional corporate game you come out, you say sorry, you implement changes, and then you tell everybody about it, and then you hope that the next quarter's results will bear it out. yes they have managed it well, but it's been staged there's a gap somewhere. results can only go on for so long there are signs of facebook going over the hill in more developed markets. i wonder if it's time to think about this on a more global scale. this is not just a traditional corporate institution here we are dealing with something on a global scale with something

that something to do with millions, billions of peoples dat data >> they have a charm offensive here they have a series of tv commercials. here's the thing, the just of the ft's top story is that the germans believe if you're a phone company you have all these regulations, but if you're facebook, you don't have to. their argument is that consumers don't differentiate between a traditional phone company and an online company like facebook do you think ultimately the googles and facebooks of the world will be regulated lie a british telecom was five, ten years ago? >> yeah. i totally agree. we have gone beyond the stage of talking about terms and conditions and so on regulation, i think, will happen i'm an optimist, so i think facebook's opportunities is to define what a regulatory regime could look like and prototype it

before regulators get in there fundamentals here are, yes, it's as important and as fundamental to our economy, our daily lives as something like telecommunications and electricity. it feels disingenuous to be talking about this and at a privacy level. >> thank you let's check on what's coming up on "squawk box." joe kernen in new york >> we have 11 minutes. i have a lot to talk to you about. we probably can't blow the rest of the show on this, can we? >> we do have a guest coming up, john silvia. >> you do. real quickly, when all was said and done, did you lose by two strokes, a hole, or cut it between one and two strokes. what joe is referring to is i

golfed with dom chu yesterday. >> which is annoying, because he's good. >> i think he shot 82. >> did you break 100 >> no. i'm terrible i want to be clear, i'm ab honest golfer. i lost eight balls took a penalty on every one. no cheating. i put up a bad score, but an honest score >> so dom chu cheated a little >> no. no. >> why are you pointing out you are an honest golfer >> i could have broke a hundred, if i took a mulligan here and there. >> his tempo here, he doesn't rush at all from here. that transition is so smooth that's the key >> he's smooth on tv slow and deliberate everywhere safe driver. everything everything about dom is slow and deliberate >> another jobs report tomorrow. i'm shocked now. do you remember the endless

summers when you were a kid. three months was like ten years. >> i grew up in los angeles, it was a 12-month summer. >> exactly and you spent 12 months on the road probably. >> time does go more quickly last time the president tweeted i'm looking forward to the jobs number tomorrow if he comes out saying i'm dreading this. >> futures took a turn the "journal's" lead story is how americans are able to get better jobs with better pay and it says that could improve worker productivity which is one thing we're told cannot improve to the extent where we can get faster gdp growth. maybe it's possible that's one way that we do it. however global trade is already slowing, even before the tariffs. >> we have to go i have a challenge

san sandy, you and sandy two good golfers, versus dom and me, a good golfer and a terrible golfer what do you think? >> depends on the match. a lot of times one good golfer will do better >> we'll work it out certain drives being used. we'll figure it out. >> why are you foisting that on me >> i like to foist things. >> don't foist him on me >> still ahead on "worldwide exchange," a start startling s&t and can the fed manage this hot economy? a lot to do.

fed minutes are out today. let's bring in john silvia what's the number one and number two things you want to see from the fed minutes today? >> are they going to talk about trade and tariffs, and to what

extent are they focused on the market itself? you hinted at it earlier in terms of the overall growth of the economy seems to be the dominant story >> what do you think do you think they'll mention trade? are they just whispering about it do you think they'll write about it >> i think they'll mention it and say it creates uncertainty in terms of policy going forward. >> do you think it changes their policy going forward >> right now the answer is no. you'll have a 4% gdp number for the second quarter, but by september it will make a difference for the fed they will start to temper their interest rate expectations for 2019 >> do you think they'll acknowledge that inflation may be hotter than some headline numbers seem >> i think some people at the fomc will say exactly that that system of these inflation indicators are hotter than anticipated. the ism report you can see with

sector prices paid being still as high as it has been in the last three to six months that's a surprise to some people at the fed >> do you think they'll move their interest rate expectations then, the dot plots, that's their guesses. >> they won't change the dot plot now, but at least by september they will alter that dot plot going forward >> john silvia, i know you have a busy day thank you very much. let's wrap it up as always with your rbi. do you ever wonder why we talk so much on cnbc about big cap tech stocks? because they matter a lot. do you realize just how much they might matter to your investments even if you don't own them listen to this according to a goldman sachs report that came out a couple days ago, just five big tech stocks, amazon, microsoft, apple, netflix and facebook account for 92% of the s&p 500's return their market caps are so big they matter that much, they are

nearly the entire return of the index this year. 36% of that alone is amazon. have a great day

china says the u.s. is opening fire on the world with tariff threats we'll tell you what happens tomorrow when $34 billion of taxes on chinese goods takes effect. president trump is demanding that opec do more to stabilize oil markets, i think that means stabilize on the downside calling them to reduce pricing now. and the box office posting a record second quarter thanks in part to universal's "jurassic world. it's thursday, july 5, 2018. "squawk box" begins right now.

>> live from new york where business never sleeps, this is "squawk box." good morning welcome back to "squawk box" on cnbc hope you had a happy 4th i feel like there will be some hangovers this morning for people watching. i'm andrew ross sorkin along with joe kernen. melissa lee is with us becky quick is off today look at u.s. equity futures this hour the dow look like it will open up about 140 points higher the nasdaq opening up about 32 points higher. the s&p opening up about 14 points higher.asury yields at this hour the ten-year note, 2.862