china launched tariffs after the u.s. moves >> tariffs in the world. higher or lower? >> i think they'll end up higher. >> they see diesel to practices ultimate payback for a whole series of things wit u.s. and the west have done to the chinese. i'm courtney reagan, it's 5:00 a.m here's your five at 5:00 breaking news, brexit secretary david davis is out we're live in london with the latest chinese tech giant ten cent claiming to spin off music streaming business the company wants to list in the u.s. rescue operations back under way in thailand as they try to reach people inside a flooded cave the countdown is on. less than 16 hours, president trump is expected to announce

his pick for the next supreme court justice. we have the latest on the big stories coming up. it's monday, july 9th, 2018. worldwide exchange begins right now. good morning well koom to worldwide exchange. i'm dominick chu brian sullivan is off. the s&p up by 9 points the dow jones up by 102 and the nasdaq by 31 points if things hold like this going to the opening bell as for the treasury side of things, 2.85%, still hovering around that level right now as you can see for the ten-year treasury note. the two-year note 2.5 6% interest rates fairly steady right now. on the asia side of things, we have seen a strong day across the board, especially in china

japan's nikkei up. the shanghai up. about a half a percent as well for the kospi. as you can see for the major indices in europe, the dax off the cac in france and the uk .2 of 1% as well. look at the oil market we're seeing a little bit of weakness in wti crude ice brent crude. 77.53 up by one half a percent let's take a look at the currency side of things. the dollar losing grounds. 1.1771 to buy a euro pounds, 1.33 in the uk driving that british pound

action let's talk about that breaking news out of the uk. brexit secretary david davis is out. his res egg nation comes as a big blow to british prime minister theresa may let's get to cnbc's ver search i in our london newsroom >> absolutely. this is the 7th cabinet resignation in the uk. there has been a lot of turmoil. the backdrop is not positive despite the actions in markets this morning to give you more context, on friday, theresa may did hold this all-important cabinet meeting to discuss the future relationship the uk would be looking like with the eu or when the time does eventually come. a lot of her cabinet ministers were not happy with the solution it seems like a soft brexit than the hard brexit that many were vying for. there was a lot of discontent out of there and a lot of questions over the weekend as to

how some of those key cabinet ministers would react. we found out that the key negotiator as far as the brexit negotiations are concerned has left the key questions for market now are, one, who is going to replace david davis. two, what does this mean for theresa may and three, whether or not there's going to be a leadership contest all of these are big questions hanging over the market. british assets are doing okay. sterling dollar, cable bounced .4%. perhaps on hopes that we're going to look at a slightly softer brexit than what was originally envisioned. the ftse trading .2% higher in line with the broader equities reaction this morning. but still, a crucial week for the uk and also let's not forget, president trump is paying us a visit at the end of this week as well. >> it's going to be a big week, that's for sure. kirking it all off today thanks jou man a. the public debut

emily tan has all the details. hi, emily. >> the number 4 smartphone maker made a debut today it was the most actively traded stock. $984 million worth of shares changing hands 17 hong kong dollars after falling as much as 6%. but closed at $16.80 down 1% the company raised just over $3 billion after fees and commission after pricing shares at the bottom of the range it was one of the world's most highly anticipated ipos this year but comes to market as a time when the hong kong and china markets sold down. lingering concerns over seat valuations and the u.s. trade war. it's the biggest tech ipo in four years since alibaba it's the first stock traded with weighted voting rights in hong kong it's seen as a test of investor sentiment as there's a growing list of tech companies looking to raise funds in hong kong. i'm emily tan, back to you

>> all right thanks very much, emily. let's talk more about the debut in hong kong trading today, with us is jake saunders, vice president of asia-pacific and advisory services at abi research jake, let's talk about this idea that it feels like maybe a rush to ipo given the idea that we have a u.s. china trade spat going on right now what was the driving force behind it and why did we see the valuation we did at the low end of the range and adrift lower in trading as well? >> certainly, i think they wanted to use the funds to expand his international strategy he's done tremendously well in the chinese market and has put a strong foothold in the indian market it's the top number one smartphone seller in the indian market but has aspirations for indonesia, also europe and also united states. wanted to put funds together to me, there's goals it actually hasn't achieved a tremendous amount. but it does have a number of hurdles to overcome.

>> why, jake, the weakness today in this public day liebudebut? is it because of everything evolving around trade in the u.s. and china, or is it something else not seeing the growth story outside of the markets that you mentioned that investors want to see? >> sure. well, i think there's definitely two parts to this equation certainly, yes, the tit, for at that time, sort of spat on a political level between china and the u.s., it's been unfortunate for this ipo also, there's a challenge for the triathlon business model which they've put in place it believes it's got sort of three pillars. one is hardware and the third one -- the second one is internet services and the third is building out the retail presence there's sort of 300 physical stores, done a tremendous job selling smartphones. it went from the 9th place

vendor in 2016 into 2017 to the sixth place. in the first quarter of the year, it's it's up to the fourth place of smartphone shipments. we're well past sort of peak smartphone shipments the last two years it contracted 11% and 3% smartphones makes up about 70% of the revenues that come in for xiaomi the future is internet services >> you bring up a great point, jake this idea, it wasn't long ago we were talking about peak smartphones. how they're co-monetized apple is making a foray to grow the services business on their side of things what is it that they can do or what's their competitive advantage going up the likes of a samsung or an apple in this kind of ecosystem environment? >> i mean, they do have an innovative strategy. they've been trying to build out this platform.

it's essential will i a software platform where they've got e-commerce cape nlt, a number of different apps and controlling the number of iot devices. it's also part of the key portfolio, not just smartphones. they're push rg into the smart home it's built up about 210 partners companies that it brings into the fold they're branded with somehow me logo be this platform enables it to therefore control devices and bring in -- the profit margins are closer to 60%. hardware, gathering 5% and that's part of the long-term goal ironically, never be over 5% it's got a long-term play but it will take a long time too build out. >> just to wrap things up, jake, as we look at the action for the

ipo for xiao mmi is there more to read into this beyond the xiaomi story? >> i think the -- we've seen strong sentiment here we saw the situation where the ipo for xiaomi we have -- uncertain, trying to lower the profile in the market. zte, another major hand set manufacturer and infrastructure mr got clobbered by the u.s. government there is uncertain sentiment in the overall chinese tech market landscape. >> jake saunders, thank you so much for bringing us that on

xiaomi the last time we saw something like this was allibabaalibaba. ten cent is planning to spin off its streaming service on a u.s. stock exchange. the terms of the proposed spinoff including size and price range have not been finalized since it provides social networking, music services and much more. also we chat is a big part of that absolutely time for the other top corporate stories. landon dowdy on that beat with those headlines. landon. >> good morning. your individual stock stories right now include nissan the automaker held a news conference a short bit ago saying it falsified emissions data on about 900 cars several japanese companies admitted to several cases of data tampering over the past year nissan shares fell more than 4% ahead of that news why european

partner renault -- >> won a clearance from u.s. authorities for $6 billion purchase of rival orient overseas international costco says the u.s. panel didn't have any national security issues after it agreed to sell its long breach container terminal business. groupon's run as an independent company may be kpoming to an end. the pioneer of the daily deals is searching for a buyer it's trying to drum up interest. it was worth more than $16 billion when it went public in 2011 it's now valued the $2.4 billion. back to you. >> a big fall from grace for sure, landon thank you for that. we're just getting started on worldwide exchange. a triple digit jump at the opening for the dow. we'll tell you how to best trade this new week. later, who runs the world? what the louvre did that have fans of beyonce anjaz d y

booking trips to france.

welcome back a quick check on the early market action. so far this morning, futures indicated higher if the dow jones were to open right now we still have four hours to go let's get a quick check on the fixed income market. the ten-year treasury yield at

2.851. a little lower than what we saw for the yield about an hour or so ago but we still have a long way to go and a lot of market action. >> that's correct. let's discuss the market implications we're joined by chief investment officer at palisade capital management dan, it seems pretty amazing that the markets are as resilient as they are. at least here in the united states given everything with china, with europe, with canada, mexico on the trade front. why is it that our markets are holding up better than other markets around the world given everything we know >> because the u.s. economy is doing so well. that's simply the answer we're going -- we're in sort of the pre-earnings kabuki dance before we start the whole earnings cycle again but i expect we'll see strong numbers. we'll see very, very strong numbers from the banks bank valuations are extremely low right now. the stocks have not done well

more recently. but valuation support is tremendous and ultimately it's going to drive the stocks higher >> last week in the fedex pressed worries about what could happen to the broader economy because of what's going on with trade. as don pointed out, pretty resill yebt. we looked at the jobs reports. pretty good. kind of absorbed any worries from the tariffs going into place with china the $34 billion. at one point do we start to worry where corporate earnings aren't enough and the economy -- falls apart? >> you have to see it ratchet much, much higher and even beyond tariffs it would have to go beyond because, again, the trade disparity between the u.s. and kmien is what it is. it's what the administration is going after right now. if it spilled out beyond that, which i don't think it will, but on the other hand, it's going to take some time for things to be resolved they're complicated matters.

they took decades to build you're not going to resolve them in three or six or 12 months it takes some time. >> where is the opportunity right now? small and mid caps might be the place to be because they're more u.s. focused it feels for many like they've missed the train on the small cap side of things they've grotesquely outperformed the s&p. are there other opportunities in the market right now besides small caps or is that the place you should be? >> we still have a rising interest rate environment. the only bond asset class that you can do well are convertible securities that's another asset class that i think it's very easy for investors to overlook. convertibles have done very well they're outpacing the s&p this year as well not quite as good as the russell 2,000. but you have that similar opportunity set where the underlying strength of those companies, the underlying earnings growth, because most of the index is health care and technology, is extremely sounds.

again, still has a little bit more of a domestic focus to it similar to the russell in that regard >> what do you think about the strengthening u.s. dollar. in the last several days, it's been a little weaker in general, as we're talking about the corporate earnings picture, beyond the small caps, the companies that have a more international exposure what do you think of the impact and how that affects earnings? >> i believe, you have to look back to the sink onization of global growth. for a while, it looked as though all of the economies around the world were going to show strong growth look at where the weaknesses are. it's europe and it's asia right now. they're seeing a little bit of a setback. that's forcing more money into the u.s. dollar right now on a relative basis and, again, if you're going to have a trade war, do it from strength the u.s., i think, is doing it from economic strength at this

time if they're going to have any sort of say in how these trade negotiations happen, it's going to be from a stronger economic point of view. the economy the underpinning of your thesis. >> i think we're going into a period of strong earnings. there's no way to see the full positive effect of the tax cuts that occurred late in the year oil hitting all the cylinders of a car engine it doesn't happen instantaneously. i just think that's going to build as year goes on. >> dan veru. thank you very much. >> appreciate you being with us today. still ahead, washington watch. president trump set to unveil his supreme court pick today we're live in d.c. with the latest. we're following a developing story out of thailand. rescue operations back under way as crews try to reach nine ood ve inside a fldeca we have the latest when

worldwide exchange returns after this break matters? the stakes are so high, your finances, your future. how do you solve this? you partner with a firm that combines trusted, personal advice with the cutting edge tools and insights to help you not only see your potential, but live it too. morgan stanley.

in political news, president trump gearing up for a primetime -- susan mcginnis has the latest from washington what can we expect, susan? >> good morning,.com the short list down to three, maybe four nominees. any of whom could help the

president have a historic shaping of the supreme court hereveals his pick for the supreme court. >> i'm getting close to a final decision. >> not yet. >> i believe this person will do a great job. >> on a short list to replace retiring justice anthony kennedy. all federal judges including brett kavanaugh of washington. amy coney barrett of illinois. thomas hardi man of massachusetts and ray kethledge. >> republicans are holding four lottery tickets and all of them are winners. >> i think they'd be fine justices of the supreme court. i do think the president has to think about who is the easiest to get confirmed here. >> but democrats worry a right leaning court could change american's lives on issues including abortion, health care and more. >> this next nominee will be the swing vote to overturn roe v. wade and equally important, to -- if it's right, the

protection for -- eviscerate the coverage for people who suffer from preexisting conditions and workers rights, gay rights, voting rights. >> republicans with a razor-thin senate majority face a confirmation vote and short time frame before the november midterm elections. the worry there, democrats could retake the senate, possibly derail the nominee dom? >> susan mcginnis, thank you so much. philip mena is in new york divers in thailand resumed rescue operations trying to free eight remaining soccer players and their coach. the first four of the boys were freed this weekend the boys are hungry but in good condition at the hospital. in england, a murder investigation under way after a

44-year-old woman recently exposed to a nerve agent has died the same substance used to poison a former russian spy and his daughter in march. the british woman, dawn sturgis and a 45-year-old became gravely ill. the man's condition is still critical they suspect they were exposed to a contaminated item left over from the attack on the russian. wildfires continue to ravage the western part of the country with 60 large fires burning across 13 states california governor jerry brown has declared a state of emergency after one person died in a fire near the oregon border in santa barbara county, homes have been destroyed. courtney, dom back to you. >> philip mena thank you for that update. still ahead, trade turmoil the u.s./china trade tussle remains front and center we'll break down the impact straight ahead >> break out your credit cards

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a mega monday move triple digit top at the -- move to the back burner. retail names to consider as summer kicks into high gear. dinosaurs continue to dominate the big monster universal just hit at the box office

monday, july 9th, 2018 our watching worldwide exchange on cnbc. ♪ welcome back to worldwide exchange i'm dominick chu. >> i'm courtney reagan brian sullivan is off today. landon dowdy is here with a check of the headlines. hey there,court. breaking news out of the uk. dominick rabb appointed as the next brexit minister this comes after david davis abruptly resigned from the post overnight. shares of xiaomi tumbling in the public debut in hong kong. trading below the ipo price of hong kong dollars which was at the low end. ten cent is planning to spin off streaming music service on a u.s. stock exchange.

the company says the terms of the proposed spinoff including size and price range have not been finalized it provides social networking, music, and much more. >> thank you, landon appreciate it. let get a check on the early market action. where the futures are indicating the market could open. it could open higher the s&p 500 higher by 12 and the nasdaq higher by more than 38 points we had another up day on friday because of that strong jobs report even on the wage growth, a little weaker than some would like to see right now. it was enough to shrug off the fierce -- >> goldilocks scenario growth without inflation. >> it continues. let's get a check on fixed income, check on the market action in bonds this morning the ten-year yield, the one we watched closely, it is higher by -- it is up right now and it's at 2.853. it's a little higher than about

an hour ago for the yield. >> all right on the asian side of things, despite what happened with the big xiaomi ipo trading down, we saw asian markets broadly close higher than nikkei 1.25%. hang seng in hong kong up by 1 e 1/3 percent. as for the trading action in europe, modest gains as well the german dax up. the cac in france up by a half a percent. the ftse on the heels of the headlines with regard to the brexit minister resigning, up by about a third of a percent as well courtn courtney oil has been in the headlines. we've been talking about it a lot. wti is just slightly weaker on the session in the early going at 73.73 the action for brent is higher by a percent on friday, we also saw the moves go in opposite directions, at least for the settle with wti

gaining more than 1% and then brent falling ever so slightly let's take a look at what's going on with the dollar you know that's largely linked to the action in the energy market as well the euro is stronger against dollar also the pound is stronger against the dollar we're talking about what's going on with brexit in the uk and watching those moves on the pound higher by .4% and the euro is stronger against the dollar by .2% at one spot 1.77. markets -- the yawn firm investors shouldn't be overly optimistic a trade war will hurt the u.s. and chinese economies and global growth overall joining us now is the president of the national foreign trade council and former deputy director general of the wto. a number of things, ambassador,

that you have been looking at over the course of your career has the u.s. approached this trade battle negotiation with china in the right way in your opinion? >> no. i don't think so i mean, obviously there are a lot of problems with what china is doing in regulating investment and intellectual property and some of its government ownership of businesses, but i think in the end, it's very important for the two sides to figure out a way to do business with each other. for the u.s., we've said all along that the u.s. needs to rally the rest of the world to its side in pushing china in the right direction. the problem with this tit for at that time retaliation, it puts china immediately in the defensive posture, alienates the u.s. from the rest of the trading partners and makes it harder for the u.s. to use the

moral swaigs we could use in international negotiations i don't think this retaliation in the end is going to resolve the problem. it is going to cost both countries a lot in terms of economic activity. >> ambassador, we understand you don't think this is the right way to go about things if perhaps china hasn't always played by the rules when it comes to intellectual property, which was some of the impetus for us to get going. here we are. tariffs have been instituted between the u.s. and china and likely more to come in the coming weeks so what can companies and then ultimately consumers do about it how long does it take all of us to absorb this new price action? >> yeah. the biggest danger is that the disputes don't get resolved and those tariffs become a permanent feature. that affects investment decisions and the risk for the u.s. is that companies will

decide that they should move to their production to places that don't have this dispute with china. certainly shift some of the supply chains to other markets there's not a lot you can do in the short-term because you have to see how this matter is going to resolve itself these investment decisions play out over a longer period of time but in the long run, tariffs have a distorting effect on investment they're a form of government intervention that are going to create some unintended consequences for both the u.s. and china. >> ambassador, tariffs exist right now -- aside from what we've been seeing the past few months around the world, tariffs exist all over the world right now anyway to protect domestic industries they happen in china for u.s. goods and happen here for other goods imported here.

what is the impetus behind this particular move and why is it such a bad thing if tariffs exist already for us to put more on top of it to promote our agenda >> tariffs had been going down for the last 70 years. there's been a progressive trend in both the u.s. and even in countries like china to reduce them over time the real danger is, if we start moving in the other direction towards higher tariffs, history shows that's not really good protecting domestic industries in the end is a self-defeating policy because as everybody tries to protect their industries, we undermine competitiveness and economic efficiency so no, i don't accept the argument that because tariffs exist, we can raise them and it won't cause a problem. if you begin to reverse this trend and start to see an era of

high tariffs, that's going to adversely affect global businesses in a lot of different ways we're more prosperous than we were 70 years ago. we shouldn't be moving in that direction. >> i think you bring up a lot of good points, ambassador. that's what some are struggling with we are in a prosperous place the economy is very strong corporate earnings growth is very good. tariffs, if you're a free market capitalist, look at friday when the $34 billion tariffs were instituted. they became a reality. we had this good jobs report and boom, markets were higher. have we gotten used to the idea that we may not like it but tariffs are here to stay how long does it take the market to really absorb it and then still keep marching higher >> well, you have to realize -- i mean, in a $19 trillion ecomony, tariffs on 80 or $85 billion worth of goods which is

what was imposed so far is not significant in terms of the overawful economy. i think the bigger danger is if it escalates it's over time that the damage gets done. it's not something that will necessarily have an immediate impact the fact of the matter is, tariffs are a form of taxation you know, that percentage of tax might not sound like very much but the real problem is for the producers who are facing those tariffs and for u.s. exporters who are now facing tariffs on soybeans and even auto exports and steel and other things to markets like china, mexico, canada, europe, you have to remember this isn't just a u.s./china battle. we've imposed tariffs from our nearest neighbors and from the european union, which is our biggest overall trading partner. so for the companies that are

producing goods trying to export or trying to operate global supply chains with intermediate goods, this raises their costs and also causes a lot of disruption in their investment decisions and investment patterns >> got you the debate rages on, of course ambassador, head of the national foreign trade council. thank you so much for joining us this morning. >> my pleasure time for the top trending stories. landon dowdy is here with that. >> we love this, by the way. >> i hope that i live up to the expectations it wouldn't be summer without talking summer blockbusters. of course, that's trending superheroes back on top at least at the box office. disney and marvel's ant man and the wasp took the top spot at the box office bringing in $76 million domestically and 161 million worldwide. in its debut now meantime, dinosaurs continue to dominate. universal's jurassic world

fallen kingdom crossing the billion dollar mark globally over the weekend superheroes and dinosaurs. >> we have to say universal is part of nbcuniversal, which is the parent company of our network. but still, i haven't seen jurassic world yet i want to go see it. >> the only jurassic park i've seen is the very first one. >> come on >> so true >> i'm totally missing out look at all the money made >> go watch the movies. >> i really need to. but the first one was so good. can you really bring back a dinosaur from getting dna from a mosquito in amber? i'm wondering about it since i was like 9. >> still time to see t a full report next week from dinosaurs to cats the cat news out of bag on a dutch news pro program a polish academic was being interviewed when he was interrupted. look at this unexpected by his cat. the video has gone viral

he was he's jumping on the owner's shoulders and he completely covers the man's face he tried to ignore the feline experience and carried on with the interview. >> do you know who this reminds me of? >> the baby who walked in. >> like a tail with a face. >> funny stuff >> he's holding the tail to make sure it doesn't cross his face again. >> he must have been like media trained, keep going. >> it was a very serious topic not necessarily something you want to just -- >> this is why people go to studios, a controlled environment. so you don't have ten babies crawling all over you. >> like this. >> i would have both of my dogs here right now. >> he would be all over me, too, if i tried to do an interview at home. the louvre is capitalizing on beyonce and jay z's latest style bomb the louvre is offering a guided tour of their visit. the 90-minute tour shows

visitors 17 pieces of art seen in the video, including the famous mona lisa if visitors want to walk in their footsteps at their own pace, they were offering a map highlighting the route >> because of course they are. right? >> genius. >> this is totally striking while the iron is hot. >> yeah. >> this is an amazing thing to go through anybody who is an art fan knows all those pieces >> right i'm surprised they didn't do it as soon as the video was out they had to have the permission of the louvre to shoot this video. that was orchestrated. why not drop it the day it comes out. they're the only ones who knows. >> a physical guided tour and you put on the headphones. >> there's a map you said. >> i don't know if you've ever seen the mona lisa, you're 500 feet behind it, trying to do the selfie up here it's very awkward. >> super cool. i love it.

>> it's a great way to meld art and pop music together. still ahead, a consumer poll check. breaking down the best retail brands for your money and the one toss steer clear of. stay tuned we'll be right back. the one in three dimensions. ♪ ♪ so they can look up and see the place they live. ♪ ♪ and prove that the real world beats a post. ♪ ♪ ambitions live everywhere. synchrony helps make them happen with customized rewards and financing available at over 350,000 locations. synchrony. what are you working forward to?

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dow jones indicated higher by 120 points, extending the point of 120 points on friday. spotify's lead over apple music in the u.s. is getting smaller. while spotify still holds a commanding lead globally, apple's faster growth in the world's largest music market reflects its ability to push services directly to your iphone your ipad and your mac as of last week, apple music had about 21.5 million u.s. subscribers, while spotify had 22.5 million a year ago spotify had 17 million and apple had 13 million to put it in perspective music execs expect them to match by next month. >> wow that's really interesting. wonder how much it overlap, too. i use a lot of those services. not just apple or spotify. i like to check them all out. >> there you dw. speaking of buying things,

retail stocks on a tear this year the etf, the xrt up more than 10% in 2018. what's driving the rebound are we oversold because we thought it was gloomy but maybe it's not jan nif en is joining us jan, i know for a while there have been names you love, like walmart and some of those guys. >> hasn't changed. >> that hasn't changed you really are into brands these days walmart is not a brand they're an ago re gator of brands per se. what are names we're watching that we haven't missed out on? >>. it's a good time to be a strong brand, not a good time to be a third party seller. that part of the business struggles. the brand, on the other hand, if they have a strong brand and going direct to consumer, they

run up rli rather than going down online. the third-party sellers, they have roi -- >> you mean nike.com buying right from nike as opposed to buy through macy's. >> i say i like ralph lauren and tapestry, which is coach indicate spade as well i like vf. they're coming back i think. pvh is a good business nike is a strong business. as i look at all of those, i say those brands are going to win. then a look around and i say, but who can win in the other side of the business, selling the product itself as far as not being a brand. those sellers, unless you're the last man standing, like best buy is, who else sells electronics online, you can come down and look at people, say walmart can win, nordstrom's can win, coals

can win. there will be more -- despite the fact that the consumers are the strongest they've been in your investing lifetimes maybe not might be but yours yet, stores are going out of business at a record rate. >> let's put a point on this you've been a retail exec for years now. what is going to drive that positive consumer preference what differentiates the winning brands from the losing ones? what is it that they can do to make that roi even greater than it is right now? >> they have to own their space. they have to not be overlevered and be a maximum taxpayer. that's driving the benefit for the third-party sellers. you can eat your young, you can put your brethren out of business if you're the strong player there so nobody else can really plan the off price space but t.j.'s

someday burlington i still like right now. if you look at the walmart spaces, is there really room for walmart, target and amazon >> probably not. there's not anything but macy's. there's nothing in the space kohl's is in for penney's, sears and k-mart there's really just room for kohl's are we going to have sax and lord and taylor or just nordstrom's? >> i say we're going to have just nordstrom's when i look at those levels of the business, i say there's probably one winner as a third party seller in most of those spaces in some of the spaces, we've had 100 in past. >> so for the last man standing and look for the brands. thank you very much, jan really appreciate you being with us we'll have you more to come because prime day is next week. >> it is a big day. still ahead, your wall street week ahead.

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welcome back futures right now are pointing to a a os tiff open. the dow jones would open by 120 points if things stay the way they are in the opening bell the dow jones up and the nasdaq up steven englander is here to discuss. steven, as we talk about the broader overall picture for how the markets are setting up, what is the biggest driving factor? is it trade and tariffs or is anything else out there going to trump that, if you will, in the macro side of things >> i think the last -- the relief rally that the market had when average hourly earnings came in weaker than expected

the tariffs were anticipated, but as the previous speaker was saying, i think that they're not having much of an impact they're well-anticipated, they're modest and reversible. the incentive is to keep going further. i think that the market enthusiasm for the fact that nothing bad happened over the weekend is premature. >> if we can talk about the follow through from friday with that jobs report so the market, of course, was surprised to the upside with the growth in jobs wage, growth a little dispointing. fed talking about inflation. what does it mean for your investment portfolio if there isn't that 2, 2.5% inflation growth >> i think it's the best thing in the world the fed never quite gets to its target it means that all the risk the market is worried about, that the fed is going to overreact, real interest rates will go up,

all of those risks dissipate it's actually a very asset market friendly type of position for inflaugs to be in. >> steven, what's the best trade for investors right now with regard to playing the global macro picture as you see it? >> you know, i'm an optimist. a lot of gyration. at the end of the day, there's enormous -- to solve the trade issue without full-out war i think inflation is probably going to remain under control. overall, i think that the risk on view is probably -- will probably emerge as the best one even though we'll go through period in which it will look terrible i think ultimately, there are incentives to resolve the problems that we're facing steven englander thank you so much. that big picture is what we're

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good morning countdown is on. less than 15 hours now president trump expected to announce his pick for the next supreme court justice. at least the proposed next justice. we'll see. we'll get a live report from washington brexit shakeup theresa may losing a cabinet secretary. brexit secretary, really a late-night resignation we'll tell what you it means for the whole process, what it means for her. >> a big milestone this is the lead story for universal and jurassic world. we've got the numbers from the weekend box office straight ahead. it is monday, july 9th, 2018 "squawk box" begins right now.

♪ live from new york, where business never sleeps. this is "squawk box. good morning everybody welcome to "squawk box" here on cnbc we're live from the nasdaq markets in times square. i'm becky quick with joe kernen and mike san toll i. you'll see that right now the dow is up by 128 points. this comes after a strong week for the dow. up by 0.8% a gain for the week. nasdaq was up by 2.4% and the s&p saw it's best week in a month. s&p up by 12.5 points. nasdaq indicated up by 38. let take a look at what happened overnight in asia. you will see that the nikkei was up by 1.2% hang seng up by 1.75%. an