it is is 5:00 a.m. in wilmington, north carolina breaking news on hurricane florence some good news, the winds are weakening a bit but do not get complacent the storm continues to pose a major threat to the coast. billions of dollars worth of goods halted at many of the carolina ports as for your money, asia bouncing back in a big way the u.s. jump starting trade talks with china we have another high-level departure to talk to you about at tesla. apple showing off its latest product lineup including a new iphone but it is really worth

the more than $1,000 price tag we'll dig in on this thursday, september 13th as "worldwide exchange" begins right now good morning welcome from wherever in the world that you may be watching i'm brian sullivan this is your top story and some breaking news on hurricane florence maybe a bit of good news for the region the storm, while still massive, has been downgraded to a category 2 hurricane early this morning. the winds weakening just a bit but don't get complacent and this does not mean all is well florence posing a major threat to the carolina coast from southern virginia down to georgia. jackie deangelis is live in north carolina with more on the preparations and how the storm is starting to turn just a bit >> good morning to you that is good news that the wind is going to be less from the

storm. as you said that doesn't mean there will be less damage here as a matter of fact in carolina beach, a mandatory evacuation there and here at kure beach the curfew was at 9:00 a.m it feels like a ghost town here. businesses are boarded up. a lot of the residents have gone, though there are still some pockets of people when you are out and about. we have spoken to some people who decided they will hunker down for this even though that has not been advised by the authorities. the wind is kicking up a bit here today we are expecting the rain to start to move in, the outer bands from the storm, you will start to see that, that will strengthen as we move in towards thursday night a huge impact when it comes to life on the ground that's what everybody is the most concerned about but then, of course, the flooding, the wind, the rain accumulation, it could impact

the structures here as well. it could be very severe. it is estimated in a worst case scenario that you could see 1$10 billion in rebuilding costs here that's very extreme. they're also saying that wilmington, which is where landfall is supposed to be, they could see almost $8 billion itself more conservative estimates between 20 billion and $30 billion. those are more in line with what we've seen from past storms. hurricane hazel that hit here in 1954 cost about $15 billion to rebuild. hurricane hugo about 20 billion. the insurers, all state, chubb, travelers, they have been bracing for this those stocks tend to move lower before a storm because of the uncertainty people face. the north carolina governor has said warnings have been issued everybody knows what's coming here this is a monster storm. first responders will not be

sent to the coastal areas to help people if they chose to stay and risk their lives. back to you. >> from where you are, if you had to leave, we hope you get safe ground and high ground, what are the exit strategies for people like yourself who are still remaining in that area >> well, right now the bridge that brings traffic in to carolina beach is closed nobody is coming in at this point. there's still an opportunity to exit, that is because it's not even raining yet at this point so the authorities have said, if people still want to get out, we'll let them out they can move inland but just because you moved inland doesn't mean that you won't be at risk for those severe floods, that rain accumulation as well as the wind damage so some people are look at an exit strategy going to different states completely. of course that comes at a bigger cost, a bigger time investment, and it's harder for people to

do >> supplies? it was like a ghost town, we asked you about this yesterday if you had to remain for a couple of days, water, milk, food, what's your status >> our status is good, but if you didn't prepare and go to the store and buy those things before last night you won't get them probably today. >> jackie deangelis, we'll talk to you in a few minutes. thank you very much. hurricane florence posing a major risk to commerce and several east coast ports there's about 300 billion in total economic value going in and out of the five storms that are in or around the storm stor halo the port of will ming tomingtone smalle smallest norfolk virginia about four times the capacity of wilming n wilmington charleston, about 70 billion

savannah and jacksonville also important to east coast commerce here's where they all stand right now. norfolk is what they call condition zulu, that's a call from the coast guard that means the channel inland is closed the port in terms of truck traffic is open. if the ship is in port, you can probably load or unload, but new vessel traffic in and out of virginia right now is closed so you're either there and working or you're not getting in and out. wilmington north carolina and charleston, south carolina closed to all traffic. no employees there savannah and jacksonville do remain open as of last night we spoke with them both. they are closely watching this storm, especially savannah because the storm has recently turned to a more southward tact, so the port of savannah is open now but watching where this storm ends up. joining us on the cnbc news line is a man you met a couple of months ago, jim newsome, the

south carolina port authority ceo. welcome. i know this is a tense time for you and your employees what's the current status of the port of charleston >> brian, as you rightly said, the coast guard closed the port this morning for vessel traffic after the last ship went out we were focused on getting about 2,000 bmws out so they didn't have to be on the pier during the storm. we did that successfully because the storm looked like it might head south along the coast, we finally decided we needed to close for truck traffic today. we're not experiencing anything yet, but we expect that will change i'm in france on the way back, so i'll fly back in in the middle of all of this. >> you bring up an interesting point, jim where does the authority lie ultimately as far as reopening is it with you or is it with the u.s. coast guard >> the coast guard has sole

authority over harbor conditions they have a four-step notice and process, they went through that, condition whiskey, yankee, x-ray, and then zulu so they then will reopen the harbor that has mainly to do with the aids to navigation, the bowie system, and typically if there's a real significant hit from a sto storm, they need to survey the harbor that can take time they are normally efficient in trying do it but also concerned with safety. it's a process service the gates go, we own and operate the port we'll have to see what happens saturday it looks like at the end of the day it may be more of a rain event for us than anything else, but we have to keep our eyes on it what we do typically is we secure the cranes, secure all of

our lift machines, believe it or not one of the biggest risks is the wireless infrastructure. you have a lot of wireless on the port to communicate with the lift machines. that can get damaged in a wind event. we hope to avoid the worst of the winds. >> are concerned are you about a possible storm surge how much capacity do you hav for the water level rising in. >> we have -- our wharf at the terminal where you and i met that day is 16 feet above low tide so that's 10 feet above high tide i'm not seeing any projections light now of anything that would cause concern there, but as we know with storms, they're unpredictable. one can never be totally sure. we -- there's not a whole lot we can do about that now. at any one time we have about 25,000 containers on our

terminal believe it or not, we're most concerned about the empties. the loads are heavy. they weigh 25 tons, they're not really going anywhere. but we have to trap the empties together, because they can go flying around in a big wind event. >> you also noted the automobiles, jim, if people are not familiar with it, almost every x5 bmw is made in greenville, railed up to where you are, and then a facility near your port has a couple thousand cars, a risk there if the water were to rise forget about the economic damage, you have these heavy cars that would be floating around you have been successfully able to remove almost all of those bmws from literally right up against the water? >> that's -- bmw is very good at this type of contingency planning so what they tend to do, we do in cooperation with them, they

encourage as many ships in to take the cars that are on the dock out so we've had, like, four car ships in the last two days we're able to get about 2,500 cars out what they don't get on the ship they will take back on a train to a neutral location or take back on truck. i'm not there now, but i imagine if you look at our wharf right now there's not a bmw sitting there. that's part of the good contingency planning they do obviously their cars are valuable, they don't want them damaged. >> we're showing video of it right now. it's quite the challenge great job by you and your team i know it's frustrating trying to get back there. jim newsome, we'll talk to you soon >> thanks, brian on deck, bouncing back after being slammed the last couple of weeks, asian stocks

rallying back over night we'll tell you how much and why. that's when orwi ehae""wlddexcng returns. mail and packages. and it's also a story about people and while we make more e-commerce deliveries to homes than anyone else in the country, we never forget... that your business is our business the united states postal service. priority: you

this wi-fi is fast. i know! i know! i know! i know! when did brian move back in? brian's back? he doesn't get my room. he's only going to be here for like a week. like a month, tops. oh boy. wi-fi fast enough for the whole family is simple, easy, awesome. in many cultures, young men would stay with their families until their 40's. welcome back good morning here's how your money is setting up it's all about the base, not the treble dow futures are up fractionally. asian stocks, as you know, have been slammed the last couple of

weeks on trade fears, concern about a stronger u.s. dollar today a big reversal the hang seng in hong kong up more than 2.5% shanghai is up nikkei 225 up in asia as well. let's turn to europe we are following a developing story out of the uk. prime minister theresa may holding a special cabinet meeting right now to discuss the possibility of brexit talks collapsing with the eu let's get now to willem marx leave outside of 10 downing street with the latest thank you very much. there's been a lot of criticism of this current government they have not done enough planning in case these talks do collapse and britain ends up with what's called a no-deal brexit with the european union these cabinet ministers are discussing some plans they'll put in place to try to get ready for that distinct possibility. we heard from moody's this morning, they see it increasingly likely. they talked about the potential

impact that would have on the british economy. it would weaken britain's financial, economic and institutional strength it talks about the impact on certain sectors, that's auto, airlines, chemicals. i talked to michael o'leary yesterday, the ceo of ryanair, he's concerned about the impact on businesses like his that operate between the uk and europe the other challenge for theresa may is she's facing criticism from within her own party saying her proposals she made to the european union are not acceptable that they would create a state where britain would take rules from other countries without saying how those rules would be developed. we'll also hear details about how the uk will respond to no-deal from a planning perspective. >> okay. so we are waiting on prime minister theresa may to give the world an update, do you have any indication right now as to what

the status of the talks may be between the uk and the european union? >> she has a minister for brexit here, dominic raab, he said over the last 24 hours and said again this morning that he was confident that they would be able to strike a deal with the european union the brussels perspective seems to be warming to the idea of these proposals. jean-claude juncker spoke earlier this week and said he was happy with the proposals from theresa may to create a free trade area. that's the language he likes to use now, a free trade area, she quoted him approvingly in the house of commons yesterday we have a summit next year in austria, salzburg, and that will involve all the heads of state from europe and that will also be a place where they will talk about this >> not a bad place to hold

talks. let's bring in michael bell from jpmorgan asset management thank you for joining us i want to get to your ideas and thoughts, but i want to ask a personal question as we begin. i'm wondering how a global strategist does his or her job right now given you don't know if the uk will be in the eu in the next couple of years you don't know if the united states and china will end up in a full-on trade fight. you don't know if nafta as we call it will be re-signed. how do you strategize globally when there is so much unphone right now? >> i think it certainly makes things hard. one way we're looking at it is is that with all of that political uncertainty out there, it makes sense to be taking much smaller bets so we're getting closer to neutral pretty much across the board because of the uncertainty both in the uk around brexit negotiations and also globally when it comes to trade concerns

around china and the u.s >> so, you factor in your models, do you -- how much of a variance would there be in the eu or uk depending on either of the outcomes is it relatively similar in terms of your investment perspective? >> i think the markets and the media are somewhat overdoing the chance of there being a no-deal brexit to us it seems unleakly that you wi unlikely that you would get a no-deal brexit, because it would be too damaging to the economy there is not support in the house of commons or amongst politicians in europe for a no-deal brexit, so we think it's unlikely to happen >> let's hope you are right. human beings have done unexpected things in the past. when you put pen to paper and look around the world, give us some of your best global investment thoughts, ideas and

themes >> well, i think when you look at the global economy at moment, it's still a relatively sunny picture, particularly in the u.s., you have strong consumer confidence, you have businesses telling you the outlook is positive so for the moment things look okay we think the clouds start to build once the economy heads beyond 2019. and we're in a mood to start preparing for that i think the key investment conclusions for that are increasing weighting alternatives, having the ability to reduce equity exposure as troubles start to build. i think also within fixed income you need to be dynamic, have strategies that are able to reduce credit exposure as recession risks gradually starts to build and increase duration as we get closer to the turning point for the economy. within equities, you don't want to be overweight mid and small cap equities i think you also tend to see the

growth stocks underperform during downturns we're shifting more towards value. the final thing would be quality stocks historically quality stocks tended to outperform consistently during downturns. so we're starting to shift more towards that >> thank you for joining us on "worldwide exchange. talk to you soon on deck, another top executive bailing on tesla we'll show you the reaction. and more on apple's big day yesterday. will the new rollouts really be revolutionary? we'll look at that stick around what's inside? a moment of joy. a source of inspiration.

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apple unveiling a host of in products, but will the market and consumers care let's bring in steve kovack. i will say something, steve that apple will not like. i'll say it. the iphone xs, xr, whatever it is, is apple starting to sound a little microsoftian to you >> maybe not microsoftian, i think it is very much apple. what they did this year was took a lot of that revolutionary stuff they put in the iphone x and trickled it down to the cheaper models that's why i think the xr is the most exciting. it will look appealing to people who might have been turned away

from a $1,000 iphone last year and it appears you can get all that technology in a phone for hundreds cheaper it seems like a good move, it may not be super interesting compared to the new stuff last year, but it will be more accessible to people we will see the face i.d. out there, and that will be across the entire lineup now. >> i feel like it's the luxury carmaker mercedes and bmw have the cars for $29,000, they also have the $80,000 cars i know the expensive phones, the sexier phones get the attention, is the financial side of the apple story really they're going for the lower cost and maybe more approachable? i know it's not sexy, is that the stock story? >> yeah. what they proved last year with the iphone x, they can convince people to spend $1,000 or more for an iphone. >> it's 30 a month, steve.

not a,00 not a thousand >> over time you're still paying that $1,000. any way, what they proved last year is that it could be $1,000 for an iphone. now they bumped that up to 1,100 or more for the max model they announced. people will go for that at the high end if you want to save a few hundred bucks, you go for the xr, which will be appealing in markets like china so the story is they can boost the selling price and the profits with those super expensive models, and potentially increase unit sales by that cheaper model. >> so, steve, when you looked at yesterday and our coverage here, jon fortt, what was your biggest takeaway and the headline behind the headline >> the biggest pri efgest surpr they didn't announce a year ago they announced the air powered wireless charger

device this year we heard nothing about it it appears it was delayed they said it was coming in 2018. that was over 365 days ago now it's unlike apple to make a bold announcement to say we're going with wireless charging and not go through so what they did not announce is more interesting than what they did announce >> steve, thank you very much. still to come, taking aim, we're live on the ground in north carolina orwi eha closing in. "wlddexcnge" will be right back just investment advi. from insurance to savings to retirement, 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. find your certified financial planner™ professional at letsmakeaplan.org.

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closing in evacuations along the way on the north carolina and south carolina coast oil prices on the move as florence bearing down. the impact on the energy market. and wall street shrugging it off, pointing to a higher open following a big walrally in asi overnight. that's all ahead on this thursday, september 13th as "worldwide exchange" rolls on. welcome back thank you for being with us. good thursday morning. i'm brian sullivan it's a very busy day today we'll have all the latest on hurricane florence it may have been downgraded, but that's still one of the biggest storms in american history we'll get to that in a moment. first a check on the other headlines outside the world of

money and dizziness. frances rivera has more on that. >> we start off with six people who are dead after a string of shootings in southern california the gunman shot his wife and another man at a bakersfield trucking business. officials say the shooter then chased a third person out of the business to a sporting goods store opening fire and killing him. he then killed two more people at a nearby home before shooting and killing himself. investigators believe the victims are connected. pope francis is calling a meeting with the presidents of every bishop's conference. the meeting is set for february and will discuss how to protect children and prevent priest abuse. the pontiff is scheduled to meet with leaders of the u.s. catholic church today. the archbishop of washington, d.c. was implicated in the coverup. he will ask the pope to accept his resignation in a future meeting. robin williams fans could own one of the actor's late

belongings when 300 items go up for auction. they include movie props, golden globes awards and a watch he wore in one of his movies. back to you. >> thank you very much some good news on hurricane florence this morning. the winds are weakening just a bit. it is now downgraded to a category 2 however officials are urging everybody do not get complacent. this storm is a threat to the carolina coast down to southern georgia. jackie deangelis is in north carolina with more on the storm preparations >> the wins are going to kick up today. even though the downgrade has come, the maximum wind speed could still be 125 miles per hour we're at kure beach right now. we have a one-way road that leads into the town here you know how beach towns are set up look behind me

there's not a car, there's not a person, there's not a light on in any of these homes that are sitting on the water as a matter of fact, before i came on, i walked down to the beach. you can see the waves breaking and the water line is coming up about halfway or at least three quarters of the way, sort of wafshi washing away a lot of the sand the wind is a bit more dramatic this morning than yesterday. this is as the storm is approaching and getting closer tonight is the time when we get the most rain and wind so everybody here bracing for that it's still going to be a rough one to ride out. >> jackie delang leangelis, be b well thank you. let's bring in our meteorologist with more on this storm. downgraded just a bit. the bad news is, as we saw from that video, this is still a hon

cent monster storm. >> it has been downgraded to a category 2, but that does not change much. landfall will be earlier now, sometime likely on friday. there's still the chance it sits offshore, right now immediate landfall is looking more likely. right now a category 2 with maximum sustained winds at 115 miles per hour not expecting a lot of strengthening as it approaches landfall on friday there are some factors that could weaken it, others that could strengthen it. we expect it to remain a cat goi category 2 expecting landfall in north carolina and dipping south to south carolina so we are still talking about a big rain event and a storm surge event. >> just about a year ago many of us in the houston region, louisiana, we were dealing with hurricane harvey how does this storm compare in size, scope, water potential to harvey >> for some perspective, harvey

was 200 miles wide in diameter, this is 500 miles wide this will dump up to 40 inches of rain. >> like we talked about yesterday, do we expect it to be -- the one thing about harvey, it just sat there. it was moving at a couple of miles an hour. is florence quicker moving >> that's one of the positive changes we saw overnight the steering currents look to weaken on friday so that will allow it to continue to move so we're not looking at quite the stationary storm we saw yesterday, so that will help a bit but still talking about feet of rain. >> look at the size of that. from charleston so kousouthern virginia, scary. let's talk more about this with tama ester from nasdaq. pipelines, oil perm nalltermina,

natural gas plants what have you identified as some risks to the energy infrastructure >> we think the impact on the commodity market should be modest and short-lived hopefully it proves that way from a humanitarian perspective as well. mainly the impact should be on the demand side for gasoline we've seen the uptick in gasoline prices on the east coast as people are loading up on fuel going into the storm that will probably abate and stay depressed after the storm as people focus on rebuilding and are not able to drive. gasoline demand in the carolinas and virginia is about 8% of the domestic market. it's not a major demand center -- >> you have to get the refueling trucks to the gas stations, if they're not on the roads or if the driver is taking care of his family there could be short-term supply disruptions >> yes what we're looking at there is the colonial pipeline, major artery bringing gasoline from the south to the northeast

we're not so concerned about power outages. that would affect coastal operations the pipeline is inland we're concerned about the flooding so massive rain. that could cause short-term disruptions in terms of getting gasoline supplies to the new york harbor. >> pipelines need power to operate. >> the gasoline stations have generators they can operate even if power does go down the pipeline can operate in segments if some parts are damaged and others are not >> i don't want you to go into the specifics of each power plant, but there's a nuclear power plant, duke-owned four miles inland a lot of people expressed concern about the safety of that what is the macro risk in terms of power in general, power loss. can a couple million people be without power for a couple of days >> that's a possible the carolinas, virginia, 5% of the natural gas demand market.

the storm is even in the path of natural gas producing regions in pennsylvania >> is it really? >> yeah. >> all the way to pennsylvania >> potentially we have about five storms brewing now in the atlantic basin, some of which could reach the gulf of mexico, where there are major refining operations and oil and gas producing regions. right now it remains to be seen. >> i hate that you're making such a great point because what is it, isaac there's another storm in the atlantic, which now people are concerned about. florence right now is immediate. a massive immediate threat but i know that commodity forecasters and just people in general are watching these other storms >> the market is jittery now, especially going into the fourth quarter. in november sanctions on iran will come into play, so there wills less oil on the market, so the market is getting jittery

right now. >> let's hope there's a short-term disruption of anything here. we appreciate it >> thank you very much let's turn back to the market and some big individual stock stories. tesla's company vp of worldwide finance leaving next month last week tesla announced the exit of its chief accounting officer after only one month on the job. sharesof caesars are highe this morning they are being pushed to explore sales of the company. and shares of pivotal software down 25% today. that's despite the company reporting second quarter results topping forecasts and raising guidance here's the problem, analysts are focusing on the amount of deferred revenue the cloud softwaremaker has on its books pivotal software could be your

disaster du jour nike's big bet on colin kaepernick a focus at the net-net conference here's what brett haberman had to say about nike. >> nike, risky business with the ad or smart business >> brilliant >> why >> because they're speaking directly to the customer profile. part of the relevantity piece is knowing your audience. their audience is a younger millennial time that wants the brand to stand for something and they nailed it they know who their audience is not. and they know who their audience is >> you can hear more from the conference at cnbc.com/netnet. also this morning, a big shout out and congratulations to the billion dollar buyer he's certified five diamond. aaa gave his new hotel in uptown a five diamond award

what makes it cool, it's only six months after opening and it is the only hotel in all of houston to get that certification. if you know, it ilm tilman, we have expected nothing less look at shower drains when you go to that hotel you may recognize them from "the billion dollar buyer." those products on the show get bought they went into the hotel sounds weird, cool shower drains, but trust me, the post oak hotel worth your time and attention. janice henderson is making a big bet on your mortgage they're launching a new product that lets you bet on housing and tomorrow don't miss david tepper on "half time report." that's today today. today. when you get up at 2:45 in the morning you get your days screwed up david tepper is on today

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. there's a live look at wilmington beach, north carolina the rain is starting to fall the wind is picking up florence downgraded to a

category 2 the concerns are still out there. back to business and your money. janus henderson is making a big bet on your mortgage the firm launching a mortgage-backed security etf let's bring in john kirshner there are a lot of etfs for everything out there already there's a lot of etfs that passively invest in the mortgage market when you decided to roll out this product what market are you trying to serve? what does this accomplish? >> the product with the passive etfs is the fact that they cannot really structurally boat the mortgage backed securities index based on trading fees, fees to their investors, they structurally tend to underperform the mort fwaj backed secubac mortgage backed securities

index. the fixed income indices are impossible to replicate completely with stocks, you can go out and buy the stock. every stock in the index and the wraigti i weightings in the index. for fixed income, they have to go out and do a matrix type of investing where the value of mortgage backed securities are there but also the ones that are not so valuable. >> for viewers, what are you buying a lot of etfs in general are confusing. the names are confusing. they have cute tickers when you buy the jmbs, what are you buying >> we want to be clear about this with investors. mortgage backed securities have gotten a bad name since the global financial crisis. we're buying agency mortgage backed securities.

so there's virtually no credit risk there's a difference between agency mortgage backed securities which we're buying and non-agency mortgage backed securities >> for the uninitiated, and to your point for those who do remember the lehman crisis crisis ten years ago, what is an agency mortgage backed security? what does that mean? >> we have three government enterprises, fannie mae, freddie mac, jenny mae, they operate some what differently. but what the investor needs to know, when they take out a mortgage their mortgage if it qualifies, certain loan size, it will go to a government agency who will guarantee the principle and interest coming from that mortgage to the end investor which is investors like janus henderson. >> so you're buying safe mortgages, not the subprime stuff. >> that is correctly there's no subprime in this type of etf when we go around and talk to

investors they're most concerned about interest rate risk and credit risk. this etf is perfect for those invests who want less interest rate risk and no credit risk john, appreciate it. have a good day. >> my pleasure. still ahead, red hot stocks, trade talks and rising rates we'll learn how to navigate all of this news coming at you keep calm and carry on, that's what the markets are doing in our rbi, a startling stat that will make you -- you're already the smartest person in the office, but it will make you the most interesting person in the office today as well can be relentless.

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your left. in the middle is wilmington beach, north carolina. the winds picking up already and on the right, kure beach, north carolina, they are there for us on cnbc today back to the markets and your money. even on a storm day there's a lot to talk about. futures are pointing to a higher open asia had a big rally overnight let's talk more about everything with peter lazarof thank you for joining us we have this overhang of the storm. it's a big deal. it's serious but it will blow through we will rebuild. we will good on. that's what we do in this country. if you look out six months or a year, what are some of your bigger concerns? >> any time you look out six months or a year it's hard to predict what will happen next. there's lots of concerns people

have whether it's tighter monetary policy, whether it's the fact that the economy is running red hot, for some that might feel like it's time for some kind of pullback in the market or a slowdown in the economy, or some of this global trade talk, there's no shortage of things to be concerned about one thing that's important for a long-term investor to remember is that losses are normal, healthy part of a well functioning market given where we are in a bull market, you can look back at history and see since 1945 bull markets typically have a 5% pullback every ten months, and a 20% or greater pullback every five or ten years. generally speaking expecting downturns and periods of resetting to occur with the same frequency and magnitude as they have in the past will be an easier route to plan around than trying to predict the what, the why and the when >> there's -- almost, there's almost a greater concern among

some of the folks we talk to on cnbc about the fact that we have not had that pullback. it's not like we're cheerleading the market up. it's, whoa, why aren't we getting these little pullbacks do you think the structure of the market has changed maybe these historical comparisons won't be relevant anymore? >> i do think the market doesn't operate on a schedule. i think what we've had -- >> it would be easier if it did. >> it would make my life easier. throughout this recovery f we look back at history books and call this the most hated bull market ever. when you climb that wall of worry, it can be good. consumer confidence is high. you have positive investor confidence measures ticking upwards. confidence is very high. it's hard to make a judgment, but what you can say is that valuations are at a level where you would expect over the next

ten years returns to be a bit below historical averages. the path to where you get there, when these turns happen, we have had 10% pullbacks in each of the past few years it's not like they have not happened we did have a prolonged period where they did not happen. the important thing is to have a plan, not be complacent, so when the inevitable happens you are ready for it and invested appropriately. >> you could have a great sports team that has no fan interest. the team is good, but there's nobody in the stands the market feels that way in a sense where things have again so good for so long, but ultimately stocks are only going higher if you have more people buying into the market or the people that exist buying more stocks or willing to pay more for each share of stock do you think we can get the interest among the retail investor to come back into this market >> i think when you get to the point where everybody is

interested is the point in time where you might have a problem >> we're not there yet, are we >> we're certainly not when you look at what our stock market is made of, it's made of earnings growth, dividends, buybacks, valuation expansion and contraction. what i think goes amiss is earnings growth this entire rally, this entire bull market run has been outstanding companies got lean and mean during the recession, revenue and earnings growth has been off the chart now we're seeing more of the psychological aspect of that valuation expansion trying to time it perfectly is a matter of calculus and psychology which few can master. as more and more people step in and say these things will go up forever, when we hear the concerns, those are healthy. what pushing us into recession, nobody can realistically know that in advance. so if you're concerned about the

underlying fundamentals of the market or the global macro situation, you're far better off looking at those assumptions, the plan that derived your portfolio in the first place than trying to make a change in advance. most people will lose more money anticipating a correction. >> peter, appreciate the insight. thank you very much. >> thanks for having me. to your morning rbi. while the coasts ready for the storm the markets have been just the opposite something we just talked about with yesterday's flat line, the s&p 500 has now gone 54 trading days without a 1% move in either direction. that's the fifth time in five years that's happened. in fact the last time the s&p 500 had a 1% move was in late june while there's scary stuff going on in the headlines, china, trump, tariffs, storms, the stock market is saying keep calm

and carry on we'll see if we get that move today. thanks for watching "worldwide exchange." s "squawk box" is next

good morning hurricane florence heading for the carolinas, and weather forecasters are warning of life threatening surges it's a category 2, but i don't know if that matters with this rain the latest on the track and a live report from the ground straight ahead. on wall street futures pointing to higher open and optimism about possible renewal of the u.s./china trade talks. plus an apple a day. consumers buzzing about new products from the tech giant, but are investors excited and do

they need to be excited? the multiple is still not that high for apple it's september 13th, thursday the 13th "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. the u.s. equity futures at this hour look like they're indicated slightly higher. dow futures up by 22 points after the dow closed higher yesterday. it was helped out mostly by gains in boeing and caterpillar after there was news of potential trade talks between the united states and china again. the dow's gains were capped by losses in 3m