it is 5:00 a.m here are your top five at 5:00 technology front and center. leaders of facebook and twitter set to be grilled today. tropical storm gordon claiming its first fatality. it's the end of the line for theranos they will dissolve as its founder is charged with fraud. toyota recalling more than 1 million cars because of a fire risk. and high stakes trade talks between america and canada picking up today we're live in the nation's capital with what you need to watch on this wednesday, september 5, 2018. "worldwide exchange" begins right now.

♪ hello. good morning good afternoon, good evening welcome from wherever in the world you may be watching. i'm brian sullivan it's a busy wednesday. we not only have a lot of news, we have a lot of market moves for you. today it is a "worldwide exchange." it may be all about the global markets and your money more concern over how a stronger u.s. dollar will impact economies, sending not only futures here lower but other indices as well. we will highlight your one number to pay extra attention to today. that number is 2,050.27. what in the world? what a random number it's not random. that's the stock price number that amazon.com must hit at or

stay above to maintain that vaunted and nearly historic $1 trillion market cap. 2,050.27 your number to watch today. another number to watch today is zero. that's how many of the 50 stocks in hong kong's major index are on the rise today. the hang seng down 2.5%. all 50 names are lower led by another drop in chinese internet giant ten haven't. most of the major european averages are down as well. definitely watch all the emerging markets today, especially that eem etf, it's the biggest, the most liquid it's largely a proxy for asian stocks, but still it's one that people use as a problemsitxy that's down 1.5% right now let's bring in kevincurant fro

washington crossing advisers thanks for joining us. i know you're optimistic about the u.s. are you becoming at all nervous about what is happening around the world and its possible impact in the united states? >> well, we've been concerned about emerging markets we saw tail risks coming into the year we've been underweight emerging markets in the tactical asset allocation portfolios. we managed that at washington crossing, moths stly having to with tail risks. emerging markets have been in a game of catch up a lot of it is in investment grade growth a lot of that investment is financed by a lot of credit creation a lot of debt. so what we've seen is a build up of debt fairly rapidly in emerging markets on the other side of that you tend to have spikes in volatility it manifests itself in the

currencies that come pounds the problem that's what we're seeing here. >> the theme we continue to hear stateside is that things are good here. yes, the rest of the world has turmoil, as it tends to. but that will insulate the u.s., particularly the smaller and mid cap stocks is there any scenario at which what's happening say in india with the dollar or indonesia does start to impact our smaller and mid cap indices here >> yeah. if you have a slowdown in growth in the united states, that would be a problem for example you can imagine a situation where the world's equity markets recouple at some point. it's strange to have a humge par of the world moving in a different direction. if you did have that, you could see equities creep back into confidence, dampening confidence in whet, ybit, that could spillr and hurt companies where there

are high expectations for growth >> right now do you remain bullish on stocks? >> we like the u.s. over the rest of the world. we like developed over emerging. that's been our call for a while here we have not seen signs of change in that direction. it has more to do with risk than valuation. we can see that equity valuations have gotten cheap after a long period of under-performance. we have not reached that turning point yet. we're sticking with the u.s. call we like developed markets over emerging >> it's the beginning of a long day, but we appreciate it. thank you very much. >> thank you it could be the end of the line for what looks like one of the greatest frauds in american business history blood testing firm theranos shutting its doors reportedly for good kate rogers has more on this >> the once celebrated company now plans to dissolve itself and return any remaining cash to creditors. the "wall street journal" reports that theranos announced

the move in a recent e-mail to investors from ceo david taylor. this after a failed attempt to sell the company taylor said they reached out to more than 80 potential buyers. big-name investors lost about $1 billion. this latest chapter had been expected since the founder was charged with fraud by federal prosecutors back in june she and formthe former coo are accused of encouraging doctors and patients to use their blood testing services despite knowing they could not promote consistent results once valued at $9 billion, theranos is now in default of its credit agreement and owes at least $60 million to other creditors. itlaid off most of its employees back in april. >> i said it before, if you have not read "bad blood," you need

to read it that will go down as a textbook case of investigative journalism amazing book >> it's reading well >> thank you very much also today new details emerging about the arrest a few days ago of one of china's most powerful ceos. we are learning that richard liu was arrested on suspicion of rape that's according to a report released by police he was released from custody without being charged and is now back in china. more on this story as new details come in. tropical storm gordon is now moving along the mississippi and alabama coastline. it is moving onshore and residents there along with a number of refineries and oil facilities are nervous jackie deangelis is live in gulfport, mississippi with more. >> good morning. those nerves that you mentioned sent oil prices spiking over $70 a barrel yesterday as you mentioned tropical storm

gordon making landfall last night about 50 miles east of here we're in gulfport, mississippi the worst of the storm hitting in alabama here in mississippi a state of emergency declared by the governor yesterday a curfew put in place last night around 7:00 p.m. strictly observed by the residents here you could tell this was a situation after harvey, irma and maria where people were bracing for this and it was better to be well-prepared than not at all. as far as storms go, this was not the worst we've seen some are describing it as a bullet dodged. oil prices did november move in preparation for this almost 50% of the refineries in the united states are down here in the gulf coast. they were impacted last year about 9% of oil production was closed down because of preparation, evacuations you never know how powerful the

storm could be there was a forecast that it could be a category 1 hurricane. we are monitoring the progress down south here stthroughout the day. >> we had hurricane harvey last year, people said don't worry about it then the storm became a lot worse. you covered a number of these storms, do you feel like there is a maybe folks taking things more seriously now than they have in the past in part because storms have largely in the last couple of years exceeded what many had expected? >> they absolutely are all the folks down here are saying they're not wrong to do so it's better to be safe than sorry. you don't know what those wind gusts could be like when they come you don't know if you'll see a storm surge in the water areas, the coastal areas. so to impose a curfew in gulfport last night, to have everybody safe and sound is better than having a situation where people are harmed or in

the line of fire, if you could put it that way. definitely people saying better to be safe than sorry, but certainly glad this storm is passing with less impact than expected >> you heed that as well do not put yourself in harm's way. we need you, jackie deangelis. thank you. >> sure. that is not the only storm wreaking havoc a powerful typhoon killing ten people in western japan. the storm left thousands stranded and more than 1 million homes without power. it is the strongest typhoon to hit japan in a quarter century. the big story to watch today, facebook and twitter on capitol hill they are set to testify before congress we'll head live to the nation's capital ahead. and later, high stakes negotiations between america and canada picking back up we'll let you know what's at play as "worldwide exchange" returns after this and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts?

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election >> that's right. sheryl sandberg and jack dorsey will testify this morning. sandberg emphasizingthe responsibility that facebook takes and the role it plays in the democratic process saying it's investing for the long-term because security is never a finished job ceo mark zuckerberg echoing sandberg in his own op-ed in the "washington post" saying the combined forces of the private and public sectors will be necessary to protect american democracy from interference in what he calls an arms race jack dorsey will get a double dose of the hot seat testifying before the senate and the house. there the focus will be on whether there's bias in twitter's content monitoring in repaired remarks dorsey saying twitter does not use political ideology to make

decisions that there is no statistically significant difference between how often tweets from a republican and democratic members of congress are viewed we don't expect to see representatives from google at the witness stable today the senate committee wanted larry page to testify. the senate rejected the top policy executive, kent walker. so there could be an empty seat highlighting page's absence. >> julia, stick around if you can. we want to play sound from mark zuckerberg this is all from when he appeared before congress in the spring here's what he told the house panel about regulation >> i think that it is inevitable that there will need to be some regulation so my position is not that there should the no regulation, but i also think you have to be careful about what regulation you put in place for a lot of the reasons you're saying. a lot of times regulation by definition puts in place rules

that a company that's larger like ours can easily comply with but might be more difficult for a smaller startup to comply with these are all things that need to be thought through carefully. >> let's bring in cyrus mowowala, and julia is still joining us do you expect anything material to come out of today's hearings or just a lot of yelling by certain members of congress and we move on with the status quo >> i think if we go back to the previous hearings a few months back when mark zuckerberg was on, the senate showed a distinct lack of knowledge of how the internet business works. this time we hope to see much more deeper questioning about regulatory issues. and we at global data think this is the beginning of a huge regulatory wave against the big social networks. >> cyrus, we've her a lot about the potential for regulation

around privacy, the possibility of implementing certain rules in the united states as gdpr in europe what do you think the most likely regulation is outside of gdpr style privacy regulation? >> i think there's a number of regulatory areas, like copyri t copyright, tax avoidance, senate hearings, and so on, but this is a targeted hearing in the short-term there's two possible outcomes in terms of regulation the first is that the senate or the regulators in america could ask facebook, twitter and google to open up their algorithms so that outside authorities can check whether there is bias in them >> it's like asking for the recipe for coca-cola >> exactly >> do you think those companies would ever do that >> well, they might do that if

the disclosure is only to the u.s. government, not to the public i accept your point, they're unlikely to do that. the second option is they get regulated as a publisher social networks like facebook and twitter to some extent google have always said they're content neutral platforms. aggregation platforms, they show no bias. but the fact they have an algorithm which targets news and search to users means that they do cure rate contenurate contend then folks could say they should be regulated that imposes compliance on facebook, twitter, google to fact check their work and have news less bias than it is whether inadvertently or on purpose. >> cyrus, facebook and twitter made it clear they're not media

companies. they tried to define themselves as technology companies. they are not publishing their own news, they are allowing other publishers to share on the platform it seems like a lot comes down to the debate about whether they're media companies or tech companies. >> yes and now is the right time to have the debate. you can argue both ways. you can argue a publisher creates news and facebook's algorithms are an automatic curato curator. why are we having this hearing because social media companies for years have done a lot of good, but also brought about a lot of social ills one of them is election manipulation the very result of the u.s. election, the greatest democracy in the world, you know, is potentially in doubt the whole world is watching to see the validity of these results. this is a question we cannot

just ignore. in the past regulators allowed social networks to get away with all these social ills, this one they can't ignore. >> cyrus, to julia's point, that's the most important thing that may come out of the hearings, are they media companies or not to your point as well, that comes with a lot of negativity a lot of positives but also you get regulated by many agencies in washington, d.c. where they will sit today they continue to push into original content they're streaming live video do you believe twitter, facebook and google are now at their score media companies that should be regulated? >> yes i do in the longer term i think there's probably a better solution i'm not sure it will come from u.s. regulators. it might come from european regulators or chinese regulators right now the biggest companies in the world are facebook, google, amazon, apple.

they are big because they have ecosystems that control user data, they put that user data on clouds they own, so no other competitors can get access to that data, then they control the user interface, the facebook application or whatsapp or instagram or whatever it is. in the future regulators may start to say that data doesn't belong to facebook, it belongs to the user. so the user should control who has rights to that and that will give rise to decentralized apps instead of a strong ecosystem that facebook has, we might move to a system where facebook has to ask permission from the use tore use its data and cannot store that data on its own cloud. that's many years away >> cyrus, thank you, julia boorstin as well see you soon

still to come, auto alert on deck toyota issuing a massive recall for one of its most popular models we'll bring you the news and the car. and scores and more. the u.s. open semifinals are set. if you missed the finals, we got you covered. what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers)

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aspirin, furniture and software. >> bayer is down more than 3% right now. second quarter core earnings did rise however profit from bayer's consumer products business fell 18% largely due to the weaker dollar also the revenue from claritin and coppertone fell more. rh is down nearly 6% today retailer's second quarter earnings beat forecasts but revenue fell shoe. the compa shy. it is trimming its revenue guidance. and workday is down 2% in the premarket. the cloud softwaremaker missing second quarter earnings targets. subscription revenue did beat forecasts. they are raising the sales outlook for the year in auto news today, toyota is going to recall more than 1 million cars including the popular gasoline hybrid prius

model. this is due to an issue with the engine wire harness which could pose a fire risk vehicles produced in japan between june of 2015 and may of this year could be affected. june of 2015 to may of this year if you own one, call your dealer let's get a check on the other top headlines. phillip mena has those >> good morning. the contentionous confirmation battle over brett kavanaugh will pick up in hours if the first day of hearings democrats showed up ready for a fight. they before twere trying to thra wrench in the proceedings by immediately calling for the testimony to adjourn also 70 demonstrators were arrested. a primary might stunner in massachusetts. progressive iona presley upset michael capuano, the long-time congressman conceded last night

and voiced his support for presley. with no republican on the ballot in the direct, sstrict, she is become the first black woman to represent the state in congress. 30 people have been reported ill in the outbreak of salmonella related to honey smacks for the time being no one should be buying or selling the cereal. 130 people have been sickened and dozens o s hospitalized back to you. two college students had the whole internet buzzing after pulling a super sized joke at their local mcdonald's you have to see thisvestment it takes someone with experience and knowledge who can help me build a complete plan. brian, my certified financial planner™ professional, is committed to working in my best interest. i call it my "comfortable future plan," and it's all possible with a cfp® professional.

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what a provider provides. comcast business. beyond fast. market alert wall street pointing to a drop at the open following a slump overseas technology taking center stage. top executives from facebook and twitter heading to capitol hill. we're live in d.c. we're keeping a close eye on oil prices tropical storm gordon making landfall along the u.s. gulf coast. the latest on these stories and more as "worldwide exchange" rolls on ♪ >> welcome back. thank you for being with us or staying with us on cnbc. i'm brian sullivan we have a lot to get to on this wednesday morning. let's first get an executive recap of the top ted lines, khe.

>> tech is taking center stage in washington. the senate select committee on intelligence holding a hearing to address the issue of russian meddling in the 2016 election. executives from twitter and facebook set to testify. amazon hitting $1 twri1 trii market value becomesing the second publicly traded company in the u.s. to hit the milestone. theranos will reportedly dissolve the firm will try to pay unsecured creditors the remaining cash in the coming months back over to you >> thank you very much here's how your money and investments look now stock futures are down fairly big. triple digits. 104-point implied open lower on the dow jones. you have all the emerging markets around the world indonesia down 3.5%.

the hang seng posting its worst day in a long time, down nearly 3% as well all 50 stocks on hong kong's main index lower right now wall street will juggle a d.c. double play today. we already told you about big technology and the hearing on capitol hill the other big focus is trade negotiations between the united states and canada pick back up today. let's get to eamon javers live in d.c. with more on both. >> that's right. the canadians and americans back at the negotiating table over nafta today. last week those negotiations had sort of broken down and they agreed to continue talking through the week this week now that the united states has kicked in a 90-daytime clock on beginning the process on capitol hill that means the new deadline is sort of around october 1st for actual talks to include canada into the bilateral agreement set up on the side between the

united states and mexico the canadian prime minister, justin trudeau not signaling a lot of flexibility in the lead up to the negotiations here's what he said just yesterday. there are a number of things we must see in a renegotiated nafta. no nafta is better than a bad nafta deal for canadians so the canadian prime minister there signaling that he will hold the line on some of his demands including supply management, which is sort of the canadian version of farm subsidies based on controlling the supply overall of commodities that are produced. that's one thing that's an area of focus meanwhile we're learning -- getting a new picture here of dysfunction inside the white house in this new bob woodward book excerpts have been released to it two incidents relate to trade and nafta. look at these two bullet points from the book.

gary cohn, according to the book, stole a lert otter off trs desk that would have withdrawn the united states from a trade agreement with south korea and a letter to withdraw from nafta, cohn said i can stop this, i'll just take the paper off his desk so woodward portraying a white house of chaos and people taking papers off the president's desk. the president is saying the bob woodward book is full of fabrications back over to you >> stick around. let's bring in jimmy pethokoukis. is everything just as easy as stealing a piece of paper off the desk just when we think there cannot be more revelations about certain things being handled at 1600 pennsylvania avenue, taking a sheet of paper off a desk can completely change trade policy

>> apparently we have a paper thin margin of error here to prevent a collapse of the global trading system those are amazing revelations. it shows the path to the supposed goal here of zero tariffs is a winding one indeed. >> jimmy, let me ask you one you talk about the path to zero tariffs being a winding one. what do you think it is that brings the canadians back to the table ultimately we had this breakdown on friday. now they're back at it what do you think they need to do to get the canadians back into the agreement and make it a trilateral and not a bilateral agreement? >> it needs to be a trilateral agreement. congress and the president warned congress not to interfere, but they will interfere if this looks like a bilateral canadian-excluding deal the president has not made it easier on canada by seeming so hostile.

the canadians cannot be perceived by their own voters as having given in. if they give in on this dispute settlement regime, this chapter 19, that will look like they gave in to an unpredictable trump administration that's one problem there and then sort of this dairy subsidy regime, which is already critical to voters in ontario and quebec they can give in a bit they have given in before. maybe they can give in more. the president wants a win. i just am not sure the canadians can give enough where in the president's view he got a clean win and i think it's a little bit of a mess. all the canadians thought they would be getting back from the european holidays now, but they're still in the middle of negotiations >> i want to move on to what else is happening in d.c twitter and facebook, not google, they will be not be there, ostensibly being grilled

by congress. the questions are sure to be wide-ranging and self-serving by congress do you think that anything material is going to come out of this or can jack dorsedorsey, sheryl sandberg nod, thank the congressman and move on? >> certainly some of the previous hearings like with mark zuckerberg, the questions were not particularly informed. there was an inability to follow up that was true of the senate hearing of zuckerberg. i think the problem here is -- listen, democrats will be attacking these companies because they're big, it's a corporate power argument they're not going to get less big. they'll stay big in the case of amazon they'll get bigger they will not give up the ad-driven business model there's always content moderation issues that republicans are worried about. so, listen, this will show you that these companies have few

friends on capitol hill. and while i don't think regulation will happen tomorrow. i don't think antitrust will happen tomorrow, this is the beginning of a process, another step in that process which could lead to both those things happening. >> yes or not. is facebook a media company? that's a trigger word. >> listen, they are an outlet for media companies to get their product to the people. so, they're a media-like company, but unlike what we traditionally think of as media companies. >> eamon javers, can we expect jack dorsey to show up in a t-shirt that says "i'm not a media company ceo. >> it's suits only here in washington the question you have here with the republican party, donald trump's republican party, he's open to the idea of regulating these big companies. he is open to the idea of

telling them what they should do i saw even on one conservative television network you had suggestions that they ought to nationalize these companies and regulate them like utilities in order to preserve conservative free speech. i think we're looking at a different republican party than we've seen in the past which was typically a pro business and afraid of regulation and thought regulation would choke off the economy. that's not the case here because of the president's grievance towards what he sees as bias on facebook and google. >> eamon javers, jimmy pethokoukis, thank you both. >> you got it. time for the top trending stories. kate rogers is back with those first story is something i know you wish you had thought of. >> i do love this first story. two texas friends are going viral for a prank at their local mcdonald's they noticed there was a blank wall at the restaurant and decided to fill it posing for a

photo with mcdonald's food and ordering a poster-size print when the poster arrived, they sneaked it on to the wall of the restaurant where it stayed for over 50 days >> they made themselves an ad. >> they did. >> they were the ad. >> but without compensation. >> their compensation is right now. >> the fame. >> how did they get it on the wall with no one noticing? i don't understand >> there's a lot of questions. >> a lot of questions. i like the commitment. the nhl is taking a stand against stanley cup keg stands the 2018 champion washington capitals made extensive use of the maneuver in their off-season celebrations including one with jimmy fallon on "the tonight

show." the league is concerned about the structural integrity of the cup and the safety of people >> so that was not a stand he was held up >> for a proper keg stand, you need to be holding yourself up >> your hands have to be on it what's the ruling on this? >> you know better than me >> is that how it works? news at 11:00. >> we'll figure it out and sear rina williams and rafael nadal both won last night to move on to the semifinals williams wrapped things up in straight sets, nadal survived a 4:49 match >> so hot. so humid these athletes >> that's incredible >> if you're not living in new york city or in the east coast, it's like we're in singapore 100 degrees, 100% humidity don't know how they're doing it. >> who is better than serena

>> best ever >> that's right. still ahead, tropical storm gordon making landfall the latest track, how it's imctg painoil and gas when "worldwide exchange" returns gives you the strongest hold ever to lock your dentures. so now you can eat tough food without worry. fixodent and forget it. need a change of scenery? the kayak price forecast tool tells you whether to wait or book your flight now. so you can be confident you're getting the best price. giddyup! kayak. search one and done. so, the whole world is talking about ai. big, bold promises like... it'll transform the human race! it's gonna solve unsolvable problems! it'll find life on mars! but here's the thing. you don't live on mars. you build wind turbines.

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we are continuing to watch and track tropical storm gordon. it's losing a bit of steam as it moves ashore on the mississippi and alabama coastline.

the threat of rains and flooding continues. parts of alabama could see up to a half foot of rain. let's check oil prices we are joined by kyle cooper from iaf advisers. i have your starbucks coming your way i know you're up early how much of an impact on inventories and/or production are we seeing now? >> as of yesterday the bsee, bureau of safety and environmental enforcement had very little impact it was only 157,000 barrels of oil. 232 million cubic feet of natural gas per day. the u.s. as a whole produces around 11 million barrels. the u.s. for natural gas, 80 billion cubic feet so 0.23 of natural gas is insignificant. >> is it the best-case scenario as far as inventories and

production goes? >> certainly for a gulf of mexico storm, yes. the best scenario for inventories and production is for a storm to not be in the gulf of mexico at all. up the east coast, of course, there's little to no production. so that ends up being very little impact or no impact on supply >> you know what i'm talking about. as far as what we saw last year with harvey and the extensive flooding, gordon so far has -- and i mean this as a good thing -- has disappointed. >> it's been very little impact. the companies have hardened everything in the gulf to just about withstand everything including a direct hit at a cat 5. >> outside of gordon oil prices back towards 70. the impact of the iran sanctions, are they starting to creep in towards the market? >> certainly that's been the case for a while up nearly $7 from a few weeks ago as trade talks have pushed

the markets back and forth the two main drivers in the market are the impact of the iranian sanctions and trade talks and implications on economic growth and demand >> what do you think ultimately will matter with canada? they're our number one trading partner largely because of oil dairy, all the other stuff is getting attention. oil is the multibillion dollar issue here >> absolutely. the keystone pipeline was a major issue for the obama administration with trump trying to push that through canada is our largest importer not only have total imports fallen significantly, but we get most of our imports now from canada very safe partner. so the geopolitics of the oil trade have changed tremendously over the last decade as a result of u.s. shale and the change in production from the gulf of mexico >> kyle cooper, iaf advisers, go back to bed. he's live in houston appreciate it.

>> thank you let's find out what's coming up on "squawk box. rebekah is in the eastern time zone with more on what's on deck >> i feel bad for the guys from california that we have on early. >> they just stay up they are awake >> i've seen some people that we've definitely woken up. it's rough i was thinking about it on the way in,i love getting up early benjamin frankly was right early to bed, early to rise, makes you healthy, wealthy and wise 4:30 in the morning, all these people driving around. a lot of people do it. we'll talk more about the issue that you've been touching on this morning, that's the technology giants that are head headed to capitol hill i saw that post you put up on twitter asking if you think these are media companies or not. i think that's the core of the issue here

transparency and privacy will play at the issue here we have jim stewart on, he will talk to us about how he sees this playing out what is the good news potentially and the bad news for shareholders we have two representatives on the house energy and commerce committee where those ceos will be testifying. we'll talk with bill johnson, republican from ohio and democrat from vermont, pete welch. we'll talk about the issues, the questions they'll have for those ceos >> i don't know if they're media companies or not but imagine if cnbc had an hour of open mic night at 11:00, and we allowed random people to come forward and do 30 sebs s forward and do 30 sebs econds o what they wanted we could probably be held responsible for what they said it wasn't us, it was him i wonder if we'll see that push back against what others are

posting. >> i think you will. this goes back to a 1984 or something lawsuit, that co compuserve lawsuit who said we are just a bulletin board. so much of how people learn information now comes through these companies. it's hard not to consider them media companies. and we have the ce o of wendy's on to talk about the burger wars. we'll talk about that, too >> apparently dipping french fries into a frosty is a thing can we confirm this is a thing >> not that i know of. >> apparently it is. see you soon >> we'll check it out. the trillion dollar club amazon and apple surpassing that milestone, but they're 400 years late to the game it's your morning rbi. stick around it naturally begins to change,

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stock futures are down considerably on this busy wednesday. a triple digit loss right now. dow implied open down 108 points right now. the hang seng, all 50 stocks lower. the question is this, will those trouble stocks or the higher u.s. dollar impact our markets and our economy here let's bring in joe levorne you pointed out yesterday that the ism was nothing short of spectacular. everything seems to be firing on all cylinders. >> it is the data in the u.s. looks remarkable the tax cut from last year is working to galvanize capital spending all of that is good. the problem is if you look at the dollar, specifically the

dollar within the emerging market side, the emfx, as it is known, that's seeing tremendous appreciation the problem that we have is the better the u.s. data look, and yesterday's a case in point, the more likely it is to continue to pike as i argued many times, the amount of hikes that the fed is telling us it plans to do greatly exceeds what is priced into the market. that will provide a solid underpinning to the u.s. dollar, especially versus emerging markets and that will keep pressure on the currencies and markets. that's what we're seeing >> economies are slow-moving objects. we have not seen an impact yet do you think we will >> perhaps the one interesting thing about yesterday's ism data, we did see weakness in the export components in both yesterday's data and some of the regional series as well as some foreign pmis there's some residual concern about trade. coming back to what the fed is doing, looking at u.s. fixed

income markets, the yield curve is very flat i will continue to argue that as long as the fed is on this path of higher rates, more so than what is being discounted in futures, the financial conditions could tighten and we do have risks. if the fed wants to slow the u.s. economy, keep tightening because the channel by which the u.s. will eventually slow could come via em. >> i guess we've been so accustomed to these big swings in economies because we had two major recessions over the last 10, 12 years that we can't accept that things can remain good for a long period of time do you think there's an implied negative bias? only because we have been punched in the face economically pretty hard twice over the last 15 years >> you've right. >> that dog won't bite he by the twice. >> you forgot the corollary, that's not my dog. if you look at the u.s. in

absolute returns, the s&p is up 8% world equity markets x the u.s. are down about 5%. so the u.s. that remained relatively well and i think that will remain the case when you talk about the economies and slow-moving activity, u.s. economy is probably going to hit 3% growth this year. that hasn't happened in a long time the rest of the world has seen slower activity so markets are reflective of that they always overreact and you get more volatility. >> joe lavorgna, thank you >> thank you your rbi, you heard amazon.com hitting a trillion dollar market cap, it's not the first time it's happened i'm not talking about apple. we have ten seconds. we'll do the rbi online. we'll send it to you on twitter. we're back take care. "squawk box" is next

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good morning fire up the grill. top social media executives are heading to capitol hill. we'll take you live to washington for a rundown of the questions they can expect. we also have that great hearing for kavanaugh, too nafta negotiations are set to resume today in washington, d.c. and theranos is shutting down after the company's founder and former ceo were charged with fraud. we'll look at the rise and fall of elizabeth holmes. it is wednesday, september 5, 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 joe kernen and andrew ross sorkin. our guest host -- >> we're all back together again. >> we're all here. >> and our guest host for this hour is stephanie link head of global equities research and a cnbc contributor >> great to be here. >> lots of stuff to run through. let's start with the u.s. equity futures. at this point it looks like there are red arrows across the board. dow futures indicated to open down by 96 points. s&p futures are off by 9