it's 5:00 a.m. at cnbc global headquarters. firing back. kle kle china promising to outlast as a trade war heats up. shrugging it off wall street pointing to a higher open as investors brush aside trade tensions. and north korea said it will let in outside inspectors as the nation vows to dismantle its nuclear program. and we have tesla tumblinin after the justice department

launching a probe into the company. and a f.a.n.g. fumble, could the run be coming to an end? it's wednesday, september 19, 2018 "worldwide exchange" begins right now. ♪ good morning welcome to "worldwide exchange" i'm dominic chu. brian sullivan is on assignment today. as we look at the markets, we have a green theme developing with the u.s. futures. at least for the dow up 22 points the nasdaq up 1. the s&p just about flat. looking at the other parts of the complex, the treasury side of things, ten-year treasury note yields about 3.06%. the two-year, 2.81%. asia mostly higher today the bank of japan standing pat in the latest rate decision. the nikkei up a half percent the hang seng up a half percent.

in european trading, we're seeing the same theme develop here, fractionally higher. the dax up by 0.2% the cac in france up 0.3%. the ftse 100 down by a quarter of a percent as for the broader markets, currencies on that side of things, the euro/dollar, 1.1701. on the energy side of things, crude oil prices, west texas intermediate below that $70 a barrel mark, though getting closer 69.89 the trade there. brent at $78.97. china firing back at the u.s. this morning saying they will outlast america in a trade war and emerge stronger. eunice yoon is live in beijing with more on that story. >> thank you very much china's premiere, li keqiang was

speaking today and he didn't outright address the trade war with the united states or mention president trump name, instead he was referencing concerns of protectionism and repeated some promises to open up the economy and give foreign investors fair treatment li said that china would not actively weaken the yuan to help exporters or engage, he said, in competitive currency devaluations but would keep the yuan stable. what was missing in the speech is recognition that china has played a role in the rising protectionism among trading partners aside from the usual stridant editorials, there was one commentary in the communist party peoples daily argued that president trump's trade action does not necessarily impede china's own economic agenda.

this is what the paper said it said china will use the trade dispute as an opportunity to replace imports, promote localization, or develop export oriented advanced manufacturing. so what often gets lost in who wins or loses in the trade war is that a lot of what this made in china 2025 industrial policy is designed to do is help china develop its own home grown technology so that's really what this piece has been highlighting. that in the long run this could be good for china because china wants to be able to be a big supplier of technology in the future >> eunice, a lot of the focus for these discussions has been on not just the intellectual property side of things, but also on what happens with regard to intellectual property as we look at how things are developing now, foreign direct investment in china is always somewhat closed off to

westerners, everybody else out there. is china going to make concessions on allowing their markets to be open generally speaking to more investments from the u.s. and europe >> well, they would say, and premiere li today did say that china is open for business and he repeated again that the market access issue will be one that china will work on. he said foreign investors are welcome, they will grant more foreign access as well as investment that they welcome it. so in terms of lip service the chinese have said that this is what they plan to do and this is the area they plan to go however the main problem that a lot of china's trading partners have, including the trump administration, is that they feel these efforts have not gone quickly enough so that's the purpose for these tariffs, that the trump administration says it is trying

to get china to make these changes. however there are a lot of people within the business community and also government is, and just a lot of people who disagree with the overall approach because they don't think it's necessarily going to get the chinese to make any of these changes or even to get to the negotiating table. >> all right eunice yoon, thank you very much for that report. a big development on the trade front. let's turn to those markets. investors are largely shrugging off the escalating trade tensions between the u.s. and china. joining me now is james lu, founder and head of research at cle clearnomics. trade is no way close to getting resolved with china. this is the biggest trade conflict we have in the markets now. but it seems like markets don't care what trade war is what i hear all the time is trade really a driving force behind what's happening with markets today? >> we think trade is affecting

the markets, it's just not the tariffs on a day-to-day basis and it's not the effect of those tariffs, it's the uncertainty it's casting over markets. the markets reacted negatively to trade tariffs and trade tensions with china several months ago so you're seeing now a lot of that having already been baked in, yesterday for instance, the actual number not being as bad as many expected, you see a market pop so it's about what is baked into the market and the uncertainty it's grating for investors rather than the actual effects of the tariffs what is baked into the market at this point >> it's hard to say. eunice was talking about what the trump administration is trying to achieve. i think investors are still trying to figure that out. are the tariffs themselves a means to an end in order to get china to open up, to have them behave better around intellectual property or are they the ends in and of themselves in order to extract some sort of revenue from the trade that we do with other

countries. investors are trying to figure that out our view is that over the long run we expect tariffs to be here to stay. we do expect a higher level of tariffs than in the past but eventually this will stabilize. we'll reach an agreement it may take some time to get there once that happens, the markets can adjust to that environment and earnings growth can pick up again. the things that drove the markets up to this point can continue >> you have a lot of institutional clients, money managers, those types of folks what is the number one concern that they have with you? what are they asking you for when they come to you saying james, help me out with this what problems are you solving for them >> it seems most investors agree that even if trade tariffs -- if worse came to worse this is not something that would spark the next recession or derail completely the bull market so really the question is what is the ultimate impact of this in some ways it's similar to

what we saw with the market reaction to tax reform they treated it like a sugar high, when it's almost like an exercise regimen it's structural that should affect the u.s. economy and increase growth rate going forward. tariffs are the opposite almost. they should not have a short-term effect, but it should be something that has a long-term impact on the u.s. economy. so right now investors are trying to figure out what the short effect it over the next few months, but if we do have tariffs it would decrease the growth rate potentially. it's a net negative for the world so other things who have to offset that to improve the outlook. >> so medium an long-term is the focus. >> that's right. >> james, thank you very much. new this morning a big break through on the korean peninsula. north korea promising to permanently dismantle its key missile facilities it will also

allow outside inspectors to visit its missile testing site the news comes as the leaders from north korea and south korea me meet the two leaders also say they're working on a joint bid for the 2032 olympic games president trump applauding the news saying in part very exciting we are just getting started on "worldwide exchange." up next, tesla turmoil the carmaker under fire after the justice department launched a criminal probe into the company. plus a f.a.n.g. flop could the record rally in big cap tech be coming to an end we'll debate it. stick around "worldwide exchange" is back after this [ upbeat music ]

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tesla. investigators want more information on elon musk's tweets about taking the campaign private. investment firms have been subpoenaed as a part of that investigation. we have not heard back tesla shares are lower in the pre market off by a quarter of a percent. in the chart it was a steep drop off intraday when that news first came out joining us is nicholas callas from data track research when it comes to tesla, some analysts believe this stock is becoming less and less investment, maybe not the business prospects are that bad, but that this is a company with two or three personalities what is the take from an analyst standpoint regarding tesla >> it's a fair point this is not a traditional company, it never has been now you're facing some unusual challenges going all the way from the investigation into the tweet to

what is the real future of the company in terms of where does it stand in the industry to all the problems they had in terms of ramping up production to getting the right cars into the right hands. it's a more difficult analysis than usual >> so elon musk has a number of different challenges he already had a number of challenges is this very much just about the model 3? do they have to get that down pat for tesla's story to be a turnaround >> that's a big piece of it. there's still longer term issues regarding competitive advantage and other car companies bringing evs to market. there are also questions about how sustainable the business model is for the moment getting model 3 production ramped up and the right vehicles produced for customers is the near-term challenge. the longer term challenge is where does this company fit in

the global auto industry >> there was a time when tesla considered synonymous with electric vehicles. the growth projection for evs in the next five to ten years is massive. is tesla the company that will end up being the pioneer and the ultimate biggest beneficiary of being a first mover in electric vehicles >> that's the right question because tesla obviously had the first mover advantage and business case studies teach us that is a great thing to have. it often leads to a winner, but sometimes it doesn't not only is it sin none mouysyn evs but also self driving. >> all right thank you for those views on

tesla. we're on washington watch right now. the headlines out of the nation's capital that need to be on your radar. we're live in washington, d.c. with the latest. first, the latest out of the carolina coast floodwaters continue to rise in the wake of hurricane florence seema mody is live on the ground in new berme, north carolina >> a devastating situation early estimates are in this hurricane could cost anywhere between 17 billion to 22 billion coming up, a look at how the recovery efforts are working and how long it will take. that story next on "worldwide exchange." that helps race teams improve performance and safety. bye. girls, don't wave at strangers. can now be built into everything we drive. when you apply expertise across an industry,

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on the cellular system. . we are following the latest on the aftermath of hurricane florence floodwaters continue to rise in north carolina and along the coast. president trump is headed to the state later today to tour the damage seema mody has the latest from the ground in newbe berme, nort carolina >> a lot of military equipment is being set up here many parts of north carolina are still experiencing flooding, high waters and power outages. other parts of north carolina is where you are seeing residents slowly return to homes and assess the damage. here in new bern over 3,000

business and 4,300 homes were damaged. >> right now the community right now is coming together to help everybody. but it's going to take a process to get it done there's so many families i know in our church that lost everything >> it's been rough for everybody, devastating for many people we're one of the lucky ones. our boat still floats. the boat next to us sank >> reporter: aiding in this recovery and rebuild efforts are a number of organizations including the u.s. army national guard. they brought in their high terrain suvs they need this much height to get through a lot of the roads that are flooded walk with me here, you can see one of the large-scale fuel tankers in this type of scenario where you have a natural

disaster, fuel is a deasskey as. especially for homes running generators how do they keep that going? they need fuel and power across the carolinas will not be restored for at least another week that's a long time to wait this out. that's why fuel is a big key for these homes across the region. back to you. >> seema, how were the roads when you were getting down to new bern? were they generally clear? how difficult was it >> from raleigh to new bern the roads were fine. once we got here a lot of the roads are still closed off piles of debris stacked across streets. they're waiting for garbage trucks to come in today. the city of new bern tweeted out today telling citizens to keep their cans out on the curb

because the trucks were expected to come in today to clean up the roads. so far the highways look okay. >> thank you very much, seema mody switching gears to washington, d.c., we are continuing to follow the latest on supreme court nominee brett kavanaugh. tracie potts has the latest. >> the latest is that this hearing that is supposed to happen on monday with kavanaugh and his accuser may not happen at all she is now insisting that the fbi investigate first. >> lawyers for christine blasey ford say she is getting death threats, had to move her family and that the fbi should get the facts on her 36-year-old assault claim before lawmakers start asking her questions >> rushing forward into a hearing when she's under this much pressure is not the way to do it. the hearing should be as a result of the investigation. it shouldn't be a substitute

>> reporter: but republicans say no more delays >> if she does not want to come monday, publicly or privately, we'll move on and vote wednesday. >> reporter: judge brett kavanaugh denies assaulting ford and says he is ready to testify today. trump is standing by his supreme court nominee, reluctant to involve the fbi. >> they don't want to be involved if they wanted to be, i would do that they say this is not their thing. >> reporter: ford's accusation drawing parallels to the 1991 confirmation of justice clarence thomas and anita hill's testimony. >> i want to say to the men to this country shut up and step up do the right thing >> reporter: on monday they may not be doing anything at all the man who dr. ford says was in the room, the classmate who she says witnessed that assault told the senate judiciary panel he doesn't want to testify because

he doesn't remember anything like that happening. let's check the other top headlines as well. phillip mena live with the latest the trump administration has lost track of nearly 1500 migrant children according to congressional findings according to the "new york times." the paper report the that the administration could not give details about the children once they left shelters back in april the department of health and human services said they couldn't locate also nearly 1500 children. these new findings came alongside bipartisan legislation that could make the department take a bigger role in the children's safety. the brooklyn diocese will pay over 27$27.5 million to fou men who were sexually abused by clergy between 2003 and 2009 even victim will receive close to $7 million it comes week after a bombshell

report by a pennsylvania grand jury detailing decades of abuse by catholic priests in the state. and unbelievable site in canada video posted to instagram showing firefighters battling a 200-foot tall tifire tornado >> stunning video. thank you for bringing that to us. still to come, china fires back beijing blasting the u.s. as a trade war heats up we'll have the latest ahead. and facebook feeling the heat the social media giant coming under fire again this time over job postings details when "worldwide exchange" rerntus.

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today. let's check the top headlines. meg tirrell has those. china firing back at the u.s. this morning. the chinese state media saying it will outlast america in a trade war and emerge stronger. this comes after the u.s. announced tariffs on an additional 2$200 billion worth o chinese goods. and north korea is going to permanently dismantle missile facilities and will allow outsiders to visit its missile sites. the two slirsd they' and the justice department launching a criminal probe into tesla. investigators wanted more about elon musk's tweets about taking the company private. tesla says they are cooperating with the probe >> thank you very much, meg tirrell. let's check the stock market futures now relatively stable. the dow jones would open up by 30 points if these gains hold.

the s&p just about flat. the nasdaq up by 3 points. on the asia side of things, general strength in those markets. the nikkei up about 1% the shanghai also up european trading fractionally higher the dax up by 0.2% the cac in france up by a third of a percent the ftse 100 just about flat joining me is jurrien timmer from fidelity investments. what trade war, right? is this the primary concern for the markets? if so, why isn't the market taking this more forcibly. >> good morning. it's one concern burr it's not the only one we are living in this world of a very interesting dichotomy where the global economy has been slowing, everything is okay. but it's certainly slowing down.

china has been slowing europe has been okay japan has been okay. the u.s. has been sort of immune from this slowdown because of the fiscal stimulus that we've seen so the u.s., earnings growth has been accelerating to 24%, while the rest of the world earnings growth has been decelerating down to 6% it's a large gap between the u.s. and the rest of the world so trade figures prominently into this. all else being equal, it's a stagflationary headwind. it is a headwind but so far the u.s. has been immune from that headwind because we had so much growth coming from fiscal stimulus. it's interesting the fed raised rates seven times. it's about to go for an eighth time and the economy is stronger than it was when they started inflation is higher than where it was when they started so we're well into a tightening

cycle. so far it doesn't seem to be having an effect in the u.s. obviously the financial condition tightening that we're seeing from the fed policy is having an effect overseas. that's an overseas story >> so the gap that you mentioned between the u.s. economy and the rest of the world, it's also evident with the fed policy versus the rest of the world is the fed the most important factor in the markets now? i look at interest rates for the ten-year at over 3%. maybe a slight steepening of the yield curve in the last couple of days from flat levels how important is the treasury market right now in telling us more about the broader macro picture? >> yeah. i think there's a big tell there. my sense is that the entire yield curve has some more adjusting to do. recently we saw a revision in one of the natural rate

estimates. it was revised higher by 85 basis points which on its own, you know, you don't want to read too much into it because it's one abstract measure of where the neutral or natural rate is. but still that's about three rate hikes if the idea is that the fed wants to get to neutral, then the goalpost was moved by three rate hikes i'm not suggesting the fed will go three more than the market is pricing n but the market was pricing in three more hikes over the next two years i think that's too low maybe we'll see something closer to the fed's dot plot. so the fed is an important mover. the fed is moving the dollar higher it's moving financial conditions tighter and the rest of the world is still easing or not yet ready to start tightening. i think for the markets they need tosee that light at the end of the tunnel between the

fed, the ecb and other central banks. so far that light is getting dimmer instead of brighter so we need to get past that. until we do, i think the differential in performance and in earnings growth between the u.s. and the rest of the world will probably persist for a while longer >> you mentioned the u.s. dollar and the divergence between certain markets here the fed is a large part of that. we talked about the emerging market so much it's tied to the economy there and the u.s. dollar, perhaps to oil. is the divergence with the u.s. right now enough of an attractive gap for you to weigh in from a macro perspective? >> it is getting quite attractive so year to date the gap is about 20 percentage points if you look at it from an earnings perspective. the relative performance of global regions follow relative earnings as growth generally

does so the swing of earnings growth between the u.s. and the rest of the world has gone from plus 11 in favor of the rest of the world to minus 13 in the span of six months that's a 26 percentage point change, which is significant we have seen the gaps before but we have never seen a gap happen where the u.s. is going up and the rest of the world is going down usually it's because the entire global picture is moving in one direction or another em is just moving more than the other. that's a fairly typical back drop i think the gap is big enough to get me interested, but you still need a catalyst. i think that catalyst has to be the policy differential between the u.s. fed and the rest of the world. and we know the ecb has been signaling that it will start or continue to taper, eventually reverse qe and start raising

rates. that's a 2019 story. so we're a ways away from that the other thing to mention is that china's economic picture is very important so china has been slowing. it follows this two-year sort of boom/bust cycle closely. we're in the throes of this sort of bust cycle, if you will and china is starting to reflate and how china comes out of this, especially with this trade overhang is an important driver for em >> the story has more chapters for sure thank you very much, jurrien timmer for that. time for the top trending stories. meg tirrell is back with those meg, it's facebook but not for a good reason. >> no. so often that seems to be the case facebook coming under fire again. aclu is accusing the social media giant of discrimination. the group claims facebook violated federal and state laws by excluding women from seeing certain job ads. facebook put out a statement saying there's no place for discrimination on facebook

it is prohibited in our policies we look forward to defending our practices once we have an opportunity to review the complaint. >> this is crazy you think about it, it seems so basic that these things should not happen i wonder how much of it is really happening there or there's so much focus, a microscope on top of a company like facebook, that people are trying to find anything. >> there's a huge microscope on facebook right now i'm interested in learning more of the details, but it seems like women in professions typically dominated by men were not seeing those ads >> silicon valley has perhaps a bit of a reputation. los angeles is on track to be the biggest u.s. city to ban the sale of fur. l.a. city council voting unanimously on the ban it would prohibit the sale of mink stoles, fur coats and rabbit's feet >> why do you need fur coats in

los angeles? maybe it's 55 degrees in los angeles. >> i went to school in pasadena, i didn't see a lot of people wearing fur. >> i went to school in san francisco, it was chilly, but not enough to warrant fur coats. >> it happened with fur, what about leather? >> i don't know i don't have much fur these days in my closet. giant bundles of marijuana have been washing up on florida's beaches. law enforce. sources are not sure where it is coming from. some think it could come from a capsized boat or an air drop gone wrong do you think it was high tide, dom? >> i see what you did there. this is crazy. you go to a beach, you see wrapped bundles of weed just

washing up >> they must have unwrapped them and figured out what it was. >> if it was a capsized boat, i hope whoever is out there is safe at the same time, how is this happening like -- i don't know exactly what it means when you have that much marijuana just floating up on the beach >> that's a lot of drugs >> it is illegal in that state but legal in others. >> that is true. are video games sport? according to espn, yes for the first time ever a gamer will grace the cover of espn the magazine it will feature ninja, his real name is tyler blevins. ninja was on "squawk alley" back in march talking about the big rise in e-sports >> what a validation, espn the magazine featuring a guy -- there's been such a controversy around wloerhether or not usingr fingers on a joystick is a

sport. but when you are featured on espn the magazine, that's pretty much a big validation. >> do you think it's a recognition of e-sports as real sports or the huge market that video games are? which is more important, i guess? it's the changing trend. what we view as sports traditional athlete -- first, i'm a golfer people always say golf is not a sport, it's a game but this promotes a discussion about where society is headed. this idea that video games are the future >> absolutely. one more sign. >> meg tirrell, thank you very much for those top trending stories. coming up next, a f.a.n.g. flop could these top tech names see an end to their record run we'll debate it. first, as we head out, a check on the dow winners and losers stick with us. "worldwide exchange" will be back helped put a roof over the heads

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we are keeping an eye on the shares of abvie. it was hit with a lawsuit from california regulators. meg tirrell has those details. i was here with you when it

happened yesterday what is the lawsuit about and is this going to be a big deal? >> it did hit the shares about 3% yesterday it is a lawsuit focused on the biggest drug, humira the california department of insurance sued abbvie saying they gave illegal kickbacks to doctors to scribe the drugs. the suit stemmed from a whistle-blower who was a nurse abbvie says the allegations have no merit shares were hit yesterday. it wan interesting lawsuit because it claims to have these nurses who appear to be helpful to these patients but then are the first representative of the drug to those patients >> i guess i mean, we cover the industry, you cover it much more extensively than many other

folks out there. kickback has a negative connotation to it. yet there are acceptable kickbacks and unacceptable kickbacks in the pharma industry i feel like doctors have always got perks to funnel patients certain ways towards certain drugs. is this something you see changing trend-wise? is there more of a focus on cleaner business or is this something where it's a marketing expense, this is what we do to get our drug out there >> there are illegal kickbacks, but in general there's a huge focus on knowing the kinds of payments that doctors get from companies. often doctors get support from companies if they're involved in running clinical trials or things like that there's a huge story over the weekend and the last few weeks emerging about a doctor stepping down from his position after the "new york times" revealed payments received from drug companies that he had not

disclosed. there's a huge debate over whether he did anything wrong, whether she have resigned. whether the punishment there was too stroke >> you have to figure they'll be talking about ethics for quite some time forward. >> always. this industry is not well trusted by the public, and there's a lot of focus on this. >> meg tirrell, thank you very much big cap tech stocks are dominating the market this year with ammazon, alphabet, netflix all hitting fresh highs. facebook is the one exception, down nearly 10% this year. let's bring in the managing director from tjm institutional services, also a cnbc contributor. jim, we looked at this trade, it's been a working trade for so long what has this trade maybe turning around

>> i think we look at it as this trade, we look at the five names. that's broke up. like you said before over the last 12 months facebook is down 8% the s&p 500 is up 16%. so scratch that off. so f.a.n.g. becomes a.n.g. now you look at netflix, they had a 27% drop in july they recovered some of that, but this is a story about the three names. i'm long amazon, apple and google they began as trades but are now put into my long-term portfolio. they're vastly different stories. apple and google, they're the now. they're making money now they rule the world now. amazon we anticipate that happening, but still trades at a high p & e compared to the others, and low p & e considering what they historically traded at when you break it into three, e those three now it's just all

individual stories now any one of those could break and correct and not have reverberations in the overall market >> jim, you are on almost every day on cnbc certainly part of the futures now franchise that happens during the half time report and on the online show as well you talk about how traders approach some of these issues and develop strategies for it. when you look from a trader's perspective at the price action, trading action, volumes of these names, what signals are you looking for that we could see a possible duownturn in the trade or conversely a continuation of the bull run >> it seemed to me before that every time there was risk on, the market seems to act before it really digs into the real story. every time a day seemed like it was risk on, money would throw to those five names.

i think that's changed i don't think the three stocks we mentioned will break any time soon it doesn't appear that way to me i think what's more important today is you look at the dollar. the dollar is in a fairly high trading range for a long time. that appears to be breaking down if the dollar trades below 93.75 today, the knee-jerk reaction is to buy the dow doesn't matter who actually exports or benefits from a weaker dollar. the first knee-jerk reaction any company seeming to be global will be bought those three names fall into that, but i don't think it will be the same rush to risk on. >> jim, where do you think leadership in this market occurs into the midterm elections and into the end of the year >> i don't love that leadership over the last couple of weeks has been staples, utilities and healthcare i think that was a take a step

back, f.a.n.g. is moving out of the picture, let's see what happens next i amlong banks, bank of americ and wells. that's a function of rates going higher banks like rates going higher. banks would love a steeper yield curve. that's what i'm looking at >> thank you for the early wake up call out in chicago >> thank you sticking with technology, sources say china's tencent music cut in half the amount of money it is looking to raise in its u.s. listing to $2 billion noor for that ipo coming up next, how to trade the trade war. stocks around the world rallying to fresh highs on the back of tariffs, but will it continue? we'll discuss when "worldwide exchange" returns. making my dreams a reality takes more than just investment advice.

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>> welcome back to "worldwide exchange." futures indicating a slightly more stable to upside open the dow jones up by 27 points. the nasdaq flat and the s&p up by three points. joining us is silvia jablonski there's no trade war apparently that will derail the market. we've seen billions of dollars in tariffs declared. where are you seeing the market action now and what do you think will happen with these sectors in the marketplace given the trade tensions we see now? >> good morning. thanks for having me it is interesting because as you said, it's almost as if the markets are calling the bluff on the trade wars and the tariffs so yesterday we saw china open up we saw europe open up the same thing happened in the u.s. and, you know, coming in this morning we see much of the same happening. asia is in the green europe is in the green the u.s. looks like it's

probably going to pop open l higher i think the news of the tariffs was more muted than expected perhaps the u.s. administration is giving u.s. traders and corporations time to find new supply chains, perhaps giving time for negotiations with china. in the short-term at least it appears the market is not reacting to some of this information. if it is reacting, it's reacting on the positive side you know, we've seen a lot of performance in our china, europe, emerging market funds yesterday off of this talk >> on the positive and negative side of things, from a sector or industry perspective, where do you see the battle lines playing out? >> sure. i think, you know, my view would be more or less on the short-term versus the long-term side in the short-term, we feel as though the market is not reacting negatively to this news in the short-term we have seen,

you know, china sort of perform both the fxi related etfs and the onshore etf. those are in the green right now. and i think if china employs any kind of stimulus that will continue we've also seen healthcare rise. industrials doing well defensive spending we've seen defensive sectors, some of those boeing and lockheed names pochi ingpoppingh short-term in the long-term how does this all impact the u.s. economy? does the consumer suffer in the end by paying higher prices? do geopolitical tensions set us back with europe and asia? in the short-term the dollar is softening a bit. if that continues -- though we saw a negative sentiment last night with an increase in stockpiles, in the long term crude might pop. healthcare and some defensive seshgt

sectors might be in the bullish territory. >> thank you very much that's it for our owsh "squawk box" is coming up next . - 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. - anncr: prevagen is now the number-one-selling brain health supplement in drug stores nationwide. - she outsmarts me every single time. - checkmate! you wanna play again? - anncr: prevagen. healthier brain. better life.

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north korea pledges to dismantle key missile facilities in the presence of foreign inspectors te tai details straight ahead. and china striking back, planning to outlast the united states in any trade war. is it time to upgrade your watch? i don't know i think those apple watches look like casio's >> i have a new opinion. >> okay. becky has a new opinion. that's going for us. i don't know cnbc.com out with a review of

the new apple watch. our resident technology expert todd hazelton will tell you whether it's worth the money people pay 20,000, 30,000 for watches. certain people it's wednesday, september 19, 2018 "squawk box" begins right now. ♪ live from new york where business never sleeps, this is "squawk box." good morning, everybody. welcome to "squawk box" on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew is off today charles campbell is our local guest today. charles, thanks for being here >> thank you for having me >> let's look at futures yesterday very strong day for the markets. the averages saw their best day in about three weeks yo