it's 5:00 a.m. here's your top five at 5:00 could today finally be the day the stock market rally slows down america's biggest aluminum producer raising the red flag on tariffs. cisco getting a nice pop on news out of amazon. papa wendy's square pizzas? and delivering opportunity out of yesterday's delivering alpha conference "worldwide exchange" begins right now.

♪ good morning happy thursday i'm brian sullivan so glad to have you with us. here's how your money is setting up the day a little five-day rally for the market may come to a close today. it is early. futures do tend to move. right now we're down about 41 on the dow. had a nice rally the last few sessions, especially with big cap technology the bond market not on the move. the benchmark ten-year is yielding 2.886%. this is what you have to watch the two-year, 2.62, the ten-year, this is called the yield curve. twos and tens, if that inverts, if that yield is higher than that yield, you have to watch out. let's go world wide right now. it's red across the board in most places. look at asia, japan, hong kong, china, the kospi, all lower. in europe, a similar story you do have england, the uk up

slightly the ftse up 0.2% you're seeing red across the board. here's a global look at how commodities and currencies are trading. if you're in hong kong, your day is coming to a close you might be having an adult beverage right now, oil below $68. gold down about 12.18per ounce, and bitcoin at 73.22. the u.s. economy taking stage at yesterday's big delivering alpha conference in new york here's a recap of it >> don't be gloomy and doomy in an overboard sense the american economy is in very good shape ♪ >> perception is out there that the market has gone up the perception is everything is going great. the reality is if the market is

down, that means it's actually undervalued. >> i'm a natural optimist. i like where we are. that '08/'09 thing was vicious, it's taken a long time for people to get elbow room i think we're there now. >> i think reading too much into the news of the day can get you nervous. as investors we may say, my gosh, i have to pull back. take everything out of the market wait for the all clear sign. that's a mistake >> all right there's just a slight recap. a lot more available on cnbc.com check it out big day for us yesterday let's talk more about the health or not of the u.s. economy with the chief economist at vining sparks what do you think? do you think what jonathan gray of blackstone said at the end, we're paying attention to too many little things in the economy and not focused on the big picture is accurate?

>> to some degree that's probably accurate. the economy is certainly in very good health right now when you look at unemployment rate as low as it is business confidence second highest several since 1983 you look at the global economy, it's stronger than it has been certainly the economy is in good shape and things are firing on all cylinders. >> if you grow to the majority of the newspapers and news sites, you start to see -- trump, trump, trump, trump, trump. how much of that is sort of eating the news v s cycle where american consumers are not exposed to positive stories out there that they should be? >> on a political level, i think that's the focus, trump and the

various headline coming out of the administration you're right when you look at the broader economy, though, the headlines are strong they're replaced by more emotional headlines, some more extravagant things so i agree newspapers are probably missing the bigger news, which is the economy is as strong as it's been in a long time and probably stronger than what is sustainable longer term. >> all right the yield curve. i know it's early. it's hard to talk about this it is important. the ten-year is about 20 basis points higher than the two-year. if we see short-term rates go above longer term rates, if we get that inversion that people talk about, to you, does that automatically signal either a slowdown or a recession is coming >> so it's not automatic there's a couple of caveats to

it but absolutely we heard powell talk about it in his testimony before, the house and senate committees we heard kudlow talk about it yesterday. it is something that we're watching closely because when the two-year and ten-year inverts historically it means you're nearing the end of the economic cycle i give you one caveat. if you go back over the modern fed era, it's inverted four times, preceding three recessions the one time that it inverted where we didn't see recession follow up from that was in 1998 and it was when you had the asian financial crisis going on, long-term capital fail, the russian ruble crisis, so longer yields pushing lower that caused the curve to invert because of the flight to quality. in every other scenario the fed was hiking rates actively. they hiked rates above where longer yields were which created financial conditions which were tighter than the market thought the economy could handle when that scenario unfolds,

which is the scenario we're in now, i think it is a leading indicator that we're near the end of the economic cycle. it can take a lot of play out. it's taken up to 24 months to play out, but that indicates we're at the end of the economic cycle. >> do you think it will invert waiting for the inversion. >> exactly i think there's two-ways that it doesn't invert the first is if the fed were to adjust their stance on monetary policy and make it become a bit more receptive to what the yeel cur yield curve is doing right now they've been on autopilot. but powell eluded to the fact that they could change that going forward when he said that he thinks the best policy is gradual rate hikes for now when he threw in that for now he listed several areas of concern, trade issues and inflation not being quite as strong as what

they would like it to be and be around that 2% number, not just touching 2%, and then the yield curve. the other scenario is if you would see longer yields move higher as the shorting keeps moving up. for now it looks like it will invert the question is will it happen the second half of this year or first half of next year? >> we'll wait and find out, i suppose. we do appreciate it, craig thank you very much. >> thank you elsewhere there is a big booze -- a big buzz in the fast food world over a potential tieup between a pizza chain and a burger chain pizza chain that's been in the news for the wrong reasons >> i'm guessing that wasn't a freudian slip at this hour >> it is my birthday, let's start early. >> sources tell cnbc that papa john's founder had preliminary merger talks with wendy's before he stepped down as chairman last week those discussions cooled after

his use of a racial slur became public leading to his resignation. he is still papa john's largest shareholder with a 30% stake in the company. and he remains on the board. wendy's and papa john's tell cnbc they don't xhechcomment on rumors or speculation. papa john's has roughly 1$1.8 billion in revenue last year but same-store sales have been falling for several quarters as customers are switching to cheaper rivals wendy's once owned arby's, tim ha horton's and baja fresh. wendy's has reported 21 straight quart eers of higher same-store sales in north america papa john's closed up on the record yesterday >> we'll see if that has

anything coming of it. ibm's revenue beat forecasts on newer and higher margin businesses like cybersecurity and cloud. ibm has jumped for three straight quarters after falling for six years straight. american express had better than expected second quarter numbers on loan growth and higher spending on cards they had to set aside more for bad loans which may be a sign that customers may be struggling to pay bills. ebay's third quarter forecast underwhelmed many shareholders, and it has slow sales at its stub hub unit ebay shares down more than 5% after hours. more to do and on deck the one american company raising

a red flag over tariffs. we'll tell who said what and what former white house strategist steve bannon said about china is getting a lot of attention. we'll bring you hicos mments and reaction coming up what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods?

the value of capital is to create, not just wealth, but things that matter. morgan stanley

welcome back good morning it's 5:13 eastern time thanks for being with us dow futures indicating a slight drop at the open we've been up five sessions in a row, big tech, a big juggernaut

that continues today alcoa's ceo speaking out on u.s. steel and aluminum tariffs after the company cut its earnings outlook for the year. but alcoa's ceo did acknowledge that some u.s. producers are benefiting from higher aluminum prices as a result of tariffs. though he does say smelters in america remain at risk because they're older and more expensive to operate than those in other nations. sticking with tariffs, trade is a big focus at yesterday's delivering alpha conference. if you were not there, here's some of what you missed. ♪ >> it seem s like right now you have a bit of a trade war going on >> we haven't had a trade war in 50 years why? we never had negative interest rates in happ s is in half of e

japan and never had globalization as far as it is. >> as far as we know, president xi does not wish to make a deal. we're waiting for him. >> the distance between the u.s. and china is further than people would hope for >> if the tariffs affect permanent change on the ability for u.s. companies to compete more successfully around the world, there's something inherently wrong with that a prolonged trade war will slow global growth. >> attendees also heard from steve bannon listen to what bannon said about our relationship with china. >> we're at war with china there's three types of war the chinese look at it a information war, economic war and guns up, kinetic war they've been at economic war with us for 25 years >> jimmy, he says we're at war,

not a ground war, but do you believe we're at some kind of war with china right now >> i think we're competing i think both countries want to be the premiere country of the 21st century to do that you need to be at the technological frontier china wants to be there. that's why they have this made in china 2025 plan bannon talked a lot about that peter navarro talked about that, wanting to somehow suppress chinese technological advances i think that's probably not going to be possible i think in the united states we need focus on making sure we stay at that frontier. this is a competitor unlike one we've had before china is like japan in the 1980s, and the soviet union in the 1980s. we have a country that's a military and ideological and economic competitor. >> i don't know if you picked my

brain or if i was talking in my sleep loudly last night, because i was thinking that we have been at war with an asian nation economically for 40 years because of japan you remember in the '80s, all the fear and paranoia in the united states that japan was taking over the world. they bought rockefeller center they would develop central park into a tokyo proxy now we focus on china. we're always going to be at economic war with a lower-cost industrial producer for the rest of our lifetimes, are we not >> listen, china wants to continue to advance up the ladder so they are a higher wage company, they are at the leading edge of higher technologies, not just ai but also jet engines to genetics i find it interesting how easily we'll believe that that other economic model will somehow succeed and the traditional

american economic model will not. that certainly didn't work in the 1980s with japan remember, there's a lot of talk in the 1980s that we need to adopt more central planning. there was the japanese ministry of trade everyone thought they were geniuses, they could pick the right industries we did just fine i think if we focus on what we do best, we'll be fine in the future bannon is focused on the technology aspect. navarro has focused on it. i'm not sure that's what kudlow and trump are focusing on. there is that split in the white house. >> is it fair to say you believe china, i know you're a big free trader, do you believe china does steel intellectual property >> yeah. they absolutely do they do the force technology transfer is the solution some sort of -- broad tariffs? is that going to change? if you're attacking everybody,

there's no incentive for these companies to behave at the behest of the government to behave differently we should be going after companies that we think are behaving badly, whether that means, you know, not allowing them to use u.s. products, closing them off from u.s. markets, including u.s. financial markets. i think that targeted approach is much better than the big tariffs. we don't seem to know where it will lead. i'm glad bannon was pressed on where the end game for the trade war is all he had to say was victory. i'm not sure what that means i'm not sure the white house does either. >> the president did say trade wars are easy to win hey, jimmy, the great thing about "worldwide exchange," because you're willing to get up at this hour, we like to use you for another lock can y block. can you stick around >> i'm here for the long haul. great. coming up after the break, we'll talk about europe and what

european regulators just did to google that may signal they're already conducting a trade war with us over thnogecoly. stek around.

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hit on reports that amazon web services may be looking to build its own hardware cisco telling cnbc during a call that amazon web services confirmed they're not actively building any kind of a commercial switch. cisco shares, as you saw, up about 2% in the early trade. let's stay with technology yesterday morning you might remember the european union came out and hit google with an unprecedented $5 billion fine over antitrust issues related to its android operating system it is your lead story in the "wall street journal" now. eu slapping $5 billion fine on google is this the real trade war jimmy p. is still with us. you get my point we're talking about tariffs on soybeans and washing machines, but you have europe actively not only from a mronetary side but a privacy side coming after big

u.s. tech. >> if you look at what the eu is doing on privacy, privacy regulations, taxes, antitrust, they are taking -- it's hard to see this not as a hostile view towards u.s. tech. the u.s. cannot retaliate against european mega platforms because they don't exist that's one problem i think europe has a lot of platform envy here they don't generate big giant tech companies they're also not generating a whole lot of fast unicorns on fraction with the u.s. and china developed. they have a problem over there there's a theory in antitrust that if you sort of soothe these companies they will become distracted like microsoft and allow competitors. maybe that's the end game, bog the companies down in suits, litigation, fines, maybe that will open up some room for european companies >> or maybe they could loosen up

their regulations, make it easier to generate capital, start and create great companies. there's plenty of great companies in europe, just not technology companies instead of coming after us, why don't they fix their own problems >> that would be a logical path. i've written a lot about this, about why is europe unable to generate these sorts of companies. is it because of regulation? is it because of different european views about risk taking why don't they generate -- you can't have the big companies if you don't have the startups. they're also not generating those startups as far as the unicorns go, they have about a tenth of the number of the united states, being a very big economic region with lots of smart people big markets. so i think that -- and there's some recognition of this fact. you have, like, in france macron trying to draw american tech experts to france. that's a problem for europe. they're unable to compete. i don't like zero sum thinking,

but if there's a tech war or tech race, the u.s. and china are winning, it's not europe >> do you think this is a mini trade war that not enough are talking about? is there something hypocritical about it they're criticizing our conduct with asia but at the same time coming after u.s. companies. >> i think there is. i think it's also odd that the president has not focused at all on these sorts of attacks on american companies you don'tsee people in washington talk about tchlit in fact you have people in washington drawing up their own attacks on big companies there's a growing movement to level heavily regulate them. so you don't have that pushback at all and sticking up for these firms. >> jimmy pethokoukis, thank you very much. >> thanks a lot.

let's check the other headlines including news about shark attacks and cured meats. they're separate stories francis rivera has more. brent calf nkavanaugh has al schedule of meetings today and two kids say they were bitten by sharks in near simultaneous attacks off of fire island, new york the shark attacks were about 4 1/2 miles from one another both are expected to make a full recovery beaches in the area were closed for the day after the attacks. and a new study looking at over 1,000 people optized for mania found they may have this unusual thing in common.

they were over three times as likely to say they had eaten cured meats, like beef jerky while that may not be the direct cause of mental illness, the nitrates, which are the chemicals used to cure and process the meats may worsen the symptoms for some people never mind beef jerky, we have to worry about pepperoni pizza, salami sandwiches, too >> cured meats and mania that's a headline. thank you very much. still ahead, the mega milestone the u.s. just hit in the oil patch and what companies and investors are winning because of it. don't miss "squawk box" live from the white house among the guests talking about tariffs and the economy, wilbur ross and peteravro nar that's a big show. stick around gins to change whicy cause trouble with recall. - learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers.

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big tech on deck microsoft set to roll out numbers today. can their transformation continue the big milestones in oil that we just hit. and spring streaming we'll tell you about netflix's big plans for the boss full details when "worldwide exchange" rolls on ♪ yesterday we played start me up by the stones, the stones are

great, that is their worst song. this is springsteen's worst song welcome back i'm brian sullivan let's get you up to speed on the top headlines. jackson is back with those >> i think that's one of his best songs, but among the top stories on cnbc.com right now, ibm shares rising after the company earnings beat the street, benefitting from high margin businesses. revenue has now risen for three straight quarters after falling for nearly six years. saudi aramco says it is looking to buy a stake in sabic. they call the talks early stage discussions. the move could raise saudi aramco's market evaluation before an ipo. and tencent may plan to expand its payments footprint despite the ongoing trade war.

the company experts merchants to accept wechat pay after this month. >> what is your favorite springsteen song after glory days >> brilliant disguise. >> it's like brown eyed girl by morrison >> another great song. >> it's not. just their worst songs jackie, we still like you despite that stock futures indicating a five-day run we've had for the dow may not continue today dow futures off by 52 points nasdaq and s&p the same way. we have a lot of big earnings still to come. we're just getting started in earnings season. microsoft reports their numbers tonight. plenty of other big names are on the horizon. joining us now is lindsay bell it is early in earnings season

so far how would you categorize the numbers we have seen >> it's been a great earnings season so far. 93% of companies have beat on earnings estimates, which is better than any historic average. >> 93% >> yeah. usually it's high early in the season and then we get to 66%. so we're doing well. >> is that with technology is that with industrials is that across the board i know it's early, but who is looking particularly good. >> only 11% of the s&p 500 has reported not a lot of names but it's been broad based. i have my eye on the industrial stocks these guys have reported, and every one of the ten companies have beat. stocks on the day moved 2.8 percentage points higher >> has the guidance been okay? i imagine it has been if we're seeing a reaction to the upside. >> guidance has been very good

guidance of those ten companies have reported, 8 have either raised guidance on sales earnings or cap eecapex. >> they admit that higher prices are benefiting them. so you think industrials, we're not seeing the real fear so far in the numbers, are we >> you're not. the fact that guidance is moving higher, it could be one of two things either orders are being moved forward and that's benefiting the second and third quarter and ultimately the full year or things are not as bad as we think. you look at ism, above 60 in june industrial production up 3.8% year over year, been accelerating over the last three months it's too early to say the story in industrials is over you look at the evaluations,

16.8 times, the industrial sector is trading at a good discount >> let's wrap it up on tech. microsoft tonight. everyone is buying the same four, five stocks. they're pretty much driving everything valuations, i won't call them high that's not my job, but not historically low do you think the numbers and the guidance are going to justify the moves that we have seen? >> yes, i do this will be the sixth quarter in a row that tech will have more than 21% earnings growth. guidance will be good. this is a sector, again, that people are nervous about and you will see -- look at ibm last night a great report they raised guidance that will be the continuation over the period. >> third straight quarterly jump in revenue i loved your stat. on industrials, the day they released their numbers, the stock so far jumped 2.8% a little optimism there. thank you. >> thank you the biggest names on wall

street gathering in new york yesterday for our delivering alpha conference leslie picker one of the biggest names on wall street and joins us now >> one of them >> sorry the biggest. >> lots of economic news out of yesterday. larry kudlow yesterday morning saying he believes gdp could be 4% for a few quarters despite trade tensions he hinted the administration was considering tax cuts 2.0 and despite some of the signs like flattening yield curve, ckudlow thinks the growth part of the cycle has room to run. >> consider the possibility that a capital spending boom that we never really had, okay widespread capital returning back to the united states, you know this is the hottest country right now in the world trillions of dollars are coming here it's leaving europe and leaving

china and a lot of places and we've never seen these kind of inflows probably since the 1990s. it is possible that a, quote, real business growth cycle is right there in front of us for the next four or five or six years. >> david rubenstein also sees the economy full speed ahead he said a slowdown will happen at some point but he doesn't see signs of it this year or next. howard marks of oaktree says we're about in the eighth inning but he noted the economy is not baseball and we don't know how many innings there will be in this economic cycle. that time frame seemed to fit with ken griffin's expectations. he runs citadel. >> the current prognosis next 6 to 9 months is we're going to experience strong growth so i think that in the short

run, absent a materiel catastrophe on the trade front, i think we're looking at very strong growth the next six to nine months. i think we -- we pulled forward through the tax cut, the stimulus that goes with that some amount of demand and some amount of capex. we'll see that play out this year it makes, for example, 2021, late 2020 much murkier as griffin mentioned, the big question mark for most investors are trade tensions most people believe the issues with china and elsewhere will be resolved steve bannon said he believes tariffs are good for the economy and that president trump will be victorious in the trade war. >> it appears that unlike past years, this is the ratingeightha dri delivering alpha conference, we did not talk as much about trade wars trade was front and center in every guest's mind >> i would say that was the

recurring theme throughout every single session yesterday trade was the number one thing on most peoples minds. we heard other risks like currency fluctuations. we heard from mary erdoes talking about cybersecurity, not only for jpmorgan but for companies she's investing in but trade is something that everyone is really trying to wrap their heads around. it's something that we have not seen in 50 years on this scale so you not only have to think about what are the risks of the trade war and immediate headlines, but also the second and third derivatives of the trade war. >> as ken griffin said, it's murkier. not mercury, but murkier

>> if you want to see more great stuff from our delivering alpha conference, see it at cnbc.com. coming up, 11 million reasons why america now dominates the global oil market and one boss of a deal what netflix just did and likely has bruce springsteen nsfa cheering stick around it lets you know where your data lives, down to the very server. it keeps your insights from prying eyes, so they're used by no one else but you. it is... the cloud. the ibm cloud. the cloud that's built for all your apps. ai ready. secure to the core. the ibm cloud is the cloud for smarter business.

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1% to $68 even on news out of the energy patch yesterday we found out that the united states produced a record 11 million barrels of oil last week get this, it's only taken five months for us to go from 10 million barrels a day to 11 million barrels, so that got us thinking what stocks benefited the most in that march to 11 million? we hit that the week of february 2 pnd so the best performing oil stocks are whiting petroleum, up 85%. holly frontier up 54%. oasis petroleum, 40% chesapeake energy, almost 40%. qep resources, also up nearly 40%. let's bring in jackie deangelis for more on this those stocks went boom, but 11

million barrels a day is incredible >> it is incredible. it puts us just behind russia, over saudi arabia's production how the world has changed in just four, five years with this shale revolution what i'll point out here is look at the prices. $68 for wti. $72 for brent. that spread is coming in, now just $4. what's happening is more exports, about 1.5 million barrels a day. the record recently was 3 million. imports are shrinking, 7 million to 8million when it was around 9. you will see that shift come in closer and closer. what happens is you will see that wti price be more in favor with brent >> we still get questions if we're producing this much oil, why do we still import so much because we need the oil to be where the refiners are it's easier sometimes to ship it to new jersey than to pipe it around from houston. >> right now the infrastructure is not there to move things around the country the way we

need to to manage this production that's going to take time to build out. right now, if you can ship it in, bring it in. >> 11 million. incredible you're still with us for the other top trending stories, those not involving oil. what are they? >> a rock legend is coming to netflix. if you were not able to see bruce springsteen's one-man broadway show in person, it was great, but don't despair, it's coming to the streaming service. it is scheduled to close on december 15th on broadway, that's the same day the recording of the stage show will debut on netflix he was also at the garden last night with billy joel. >> i read "born to run" his book i didn't have the respect for him as a human being i probably should have, what he went through and did. >> he's a phenomenal story teller that's what the springsteen on broadway show is all about

it was amazing. an emotional moment at espies the arthur ashe award for courage went to female athletes for their bravery in coming forward and speaking out against dr. larry nassar at usa gymnastics and michigan state university many of those victims took the stage in a powerful show of strength nassar was sentenced to 40 to 175 years in prison last january. ali reisman said we may suffer alone but survive together >> jackie deangelis, thank you very much. the british open is getting under way this morning in scotland adam reid has an update for us >> very good morning to you. very good morning from an incredibly sunny and particularly warm carnoustie in scotland not a place you would expect for

this sunshine, a briit of a bree here tiger woods will be teeing off around 10:to eastern ti20 easte. is he expected to have a huge crowd around him the defending champion, jordan spieth is already on the course. i've seen a birdie putt for him slip by on the 3rd there's a total prizepot on offer here of 10$10.5 million. 1.89 million for the winner. not a bad way to spend a weekend if you can get it. the world number one, dustin johnson, he's off in a couple of hours. he is favorite at the moment to

win. but it is an open tournament conditions are very, very good this morning interested to see how the guys in the afternoon will get on >> adam reed, tough assignment send us some souvenirs all right. very special "squawk box" from washington, d.c. today i know that there's a lot to come up with, but happy birthday yesterday? >> thank you you know who else's birthday it was? >> who >> jackie. >> you know who it is today? >> yours happy birthday >> i like that you're always going to be one day older than me >> listen to your elders it's a big day joe is down in washington, d.c., he has a huge lineup we will talk about trade, all those issues everybody was talking about yesterday at delivering alpha we'll hear it from the

administration today, starting at 6:00 a.m. with wilbur ross. he will talk about what he sees happening now, how he sees negotiations going and where we stand. we also have peter navarro who will weigh in on trade the two wings of the white house where you have wilbur ross and peter navarro on one side. you have larry kudlow on the other side along with steven enou mnuchin. we have kevin hassett, and ivanka trump and many others who will be joining joe. that's not all we have today we have big things happening here in times square we'll be joined by joe moglia, chairman of td ameritrade. when he was ceo of td ameritrade, he took client assets from $24 billion to 28$20 billion, increasing it by more than ten fold. td ameritrade today client assets top 1.2 trillion. we'll get a good view of what

investors are thinking, where they're putting their money to work and what's happening. we'll dig through that with joe who also happens tobe the coac of coastal carolina's football program, making sure he's training this team to be leaders. happy birthday, brian. >> you share a birthday with nelson mandela and richard branson. >> you know who was the 17th >> who >> kelly evans nice run here. >> is that the water sign? >> must be on deck, break out the bacon. d.c. is serving up a heaping pile of pork erti your random but intesng stat of the day. if you think the swamp has been drained, you will want to hear this imagine traveling hassle-free with your golf clubs. now you can, with shipsticks.com! no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines.

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stock futures indicating the five-day run for the day may come to an end today futures indicated down 55 points let's bring in christina hooper. it's not your birthday today, is it >> it's not. >> okay. happy to have you. a nice run people were calling this market run dead a couple months ago trade war will kill it nothing has killed it. why is this still running on >> we are helped by accommodative monetary policy. i believe investors just have not factored in the possibility of a very significant trade war. >> how do we factor that in? we're not in a trade war right now, are we? >> you could argue we're in the early stages of a trade war with multiple parties it's not just china. it's canada and the european union.

it looks like the trump administration will move forward with auto tariffs. >> that would be big then europe would have to retaliate in a big way how do we factor in what we don't know >> that's the hard part. investors should assume it's business as usual for now. but start thinking about diversifying and downside protection in this environment we could see a significant selloff. >> is it about buying safety then how do we protect ourselves? >> diversifying, assuring adequate exposure to small caps, which has been less vulnerable, tech which has been less vulnerable and dividend paying stocks >> is there room for utilities >> absolutely. there's room for it and it makes sense in this environment. especially since we're in a relatively low yield spot. we're not going to get that much higher >> so things are good. just watch out be careful is the watch word

>> absolutely. we could see the fed start seeing this seep into economic data and possibly not do that fourth rate hike this year >> christina hooper, thank you for coming on "worldwide exchange." let's wrap it up with your morning rbi. wednesday may have been national hot dog day but the pork is still flying the congressional pig book unveiled yesterday and the hogs are running wild citizens against government waste highlighting 232 different earmarks, pork projects for members of congress last year. a 42% increase from the previous year what's worse, those special pet projects cost nearly $15 billion. that's more than double the year before oh, this is despite technically a ban on earmarks that's been in place since 2011 pork alive and well in the swamp. all right. that's it for "worldwide exchange." "squawk box" will be in d.c., they'll be in new york, they

will focus on a market that may drop today at the open it is going to be an awesome thursday vere day see you soon on "worldwide exchange."

good morning joe is at the white house this morning talking jobs with administration officials he will kick things off this hour with commerce secretary wilbur ross and peter navarro. and stocks under pressure. futures indicate a lower open. crude prices are falling the dollar is gaining strength we have a full market rundown. and delivering opportunities. investors out with big ideas at yesterday's delivering alpha conference if you missed it, don't worry, we have the highlights strai s t

ahead. it's july 19th, 2018, "squawk box" begins right now. ♪ live from new york where business never sleeps, this is "squawk box. ♪ good morning welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with andrew ross sorkin joe is live in washington, d.c. this morning joe, playing the music for you all set up, looking presidential today. >> thank you thank you very much. >> west wing >> this music, we only pull it out at certain times it is worth -- you have to be here right when the sun is starting to come up with the white house in the background. it's -- i did get a little bit emotional. it's nice. we have a lot of great stuff coming up, as you know the launch of an inter-agency national council for the