it's 5:00 a.m. cnbc global headquarters here's your five at 5. sears officially filing for chapter 11 bankruptcy protect n protection in the markets, it's a sea of red across the globe as volatility spills into a new week and international pressure mounting on sawudi arabia following the disappearance of a saudi journalist we're live in riyadh with those details. brexit negotiations hitting a major roadblock following a weekend of high level talks. we are heading to london live for the latest.

and a big deal in the defense industry as harris corp and l3 join forces monday, october 15th, 2018, "worldwide exchange" begins right now. ♪ ♪ good morning and welcome to "worldwide exchange. i'm dominic chu. brian sullivan is on assignment today. let's get you up to speed on the market action this morning and it is red. negativity out there as the dow would open up down by 211 points if things stand the way they are right now into the opening bell. we're going to have more on the markets in just a moment, but first some breaking news in the retail world sears officially filing for bankruptcy protection. let's get right to contessa brewer with all of those details. contessa >> sears holdings, the parent company of sears and k-mart filed for chapter 11 early this morning succumbing to a mountain of debt.

the filing came as sears faced a $134 million debt payment today. the company reached a deal with its creditors to keep most of its operations running for now sears will close 142 money losing stores by the end of the year with liquidation sales expected to begin soon that's in addition to the 46 stores expected to shut by next month. the company has roughly 700 sears and k-mart stores and employs about 70,000 people. sears controlling shareholder eddie lampert has stepped down esl investments is in talks to provide $300 million in additional bankruptcy filing and potentially to make a so-called stocking horse bid for a large amount of sears stores lampert says he will press for sears to emerge stronger saying everything i have done as an investor has been with the goal of helping the company and its people succeed of course there are analysts who

question that. sears stock is down 10% in premarket. it's fallen 90% this year. the company's market cap is below $50 million. dom, here's a company that a lot of us grew up with and to see it shutting doors as it has done over the years is really an exclamation point on this day. >> i think all of those that i grew up with, it's the end of an era. let's turn to the broader markets, futures are in the red. the dow is slated to open up down over 200 points the nasdaq is off by 87 points as well. turning over seas. in asia we did see a little bit of market activity there again, you can see to the down side overall the nikkei in japan off by 2.5%. the hang seng off and the shanghai composite index down as

well major forces are lower as well the ftse 100 off in the u.k. and the german dax off by 1/2 of 1% as well. let's dig into the latest global action. we have jomana standing by in london and t.d. ameritrade's j.j.kinehan is here in the united states. nancy, please kick it off for us >> hi there, dom certainly global markets didn't get off to a good trading week starting here in asia. take a look at the board behind me red across the screen. take a look at the chinese markets. all off. they're in bear market territory. remember the rrr cut that was flagged and came into action today, it didn't give the market any respite. the nikkei 225 off about 1.9% here yes, we did see a big drop in

the export names, auto giants in part due to a stronger yen against the greenback, but all eyes were on softbank. they were off more than 7% a big part of the story is down to the close ties with saudi arabia softbank's giant vision fund has a huge component of saudi financing. some nervousness here, but i should point out across asia we saw weakness in tech stories nevertheless, this is really a big drop for softbank off 7.3% there. back to you. >> nancy hungerford live in sing ga for jomana versace is live in london >> the picture in europe is not much prettier. we have the stock trading at 22 month lows

let's start with xetra dax through 12,000 level that seems like a long time ago. we had developments over the weekend with the sister party losing a number much seats in the bavarian election. people want to speculate what that means for merkel's tenure we are seeing a raise the market was anticipating an ipo, cepsa they announced they are withdrawing their intention to do this market ipo italy again, ftse mib continues to be a focus of ours down 1/10 of a percent finally u.k. also political. there did you.

back to you guys. >> jomana versace, thank you let's bring in j.j. kinehan, key strategist at t.d. ameritrade j.j., you deal with traders all the time t.d. ameritrade's platform, think or swim, all of those deal with different views they all come together this is the market with the kinds of weakness that we were seeing. >> it's interesting, dom, as we talk to our clients. seen a lot of them this weekend. besides that, when we look at the data, it's interesting that millennials, those are the longer term sort of investment horizon are the ones that are actually coming in to buy right now, whereas, baby boomers are more of the ones selling this is the classic what's your time horizon the one thing i would warn people a little bit. you don't want to be all in. that's one of the mistakes some

of the newer investors make is they tend to think all in, all out. if you're going to come in today, maybe you anybodynibble l bit. the s&p future 500s. we're just above the 27.42 to 27.45 area is where we should start to see some horrible trade. we've gotten down to 27, 45. >> are all of these technical areas, i know you deal with them on a daily basis, how important are they for traders and investors? are we going to scrutinize that much should we be putting a lot of stake in the levels from the traders? >> i think people want something to lean on and to look at.

i think more importantly what's going on in earnings, that's what you should be paying attention to we heard primarily from the ceos on the go forward statements our fears, high energy prices and strength of the dollar those fears haven't really coiffed. what do you report about every day? tariffs, brexit. we'll see how much those two figure in to the ceo statement jamie dimon elude today it a litt - eluded to it with a little bit of political consternation we didn't hear just tariffs. that's what i'm interested the usual suspects we'll hear from automakers, caterpillar, the boeings of the world. are you going to hear from retailers, et cetera that's what i think you'll list zwroen. >> retailers, consumer discretionary trade have been leaders so far this year maybe not surprisingly they were among the hardest hit as they took the leg lower they caught a bit of a bid in

friday's trading session what are we to read into that? are we in a position where the retail oriented and tech stocks are in leadership. does anything about friday's price action make you feel better or worse about the prospects for the overall market >> i think overall we are in a time right now and you see this happen every six months to a year where the ground is shifting a little bit. with all the news out there we are seeing the ground shift so what you're seeing people try to figure out is where do i put my money next to me the selloff that started last week was more about people not necessarily saying i have to dump everything. they were more taking profits, taking money off the table what's interesting to me is in a time like this you should see financials really start to lead the way. they haven't because people have been burned so many times by this ten year yield. they wanted us to hold 3.2% on the ten year we did with that people are trying to figure out, okay, i took some

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boeing/mcdonnell douglas merger in 1997. we'll watch the defense industry and those stocks in trading today. we are also watching the financials bank of america reports results in a few hours from now. joining me now on the cnbc news line is gerard cassidy, banking analyst with rbc capital markets. thank you so much for the early wake-up call, gerard what can we expect out of bank of america this morning? will it be just like it was with the other three big banks on friday, a nice pop at the open and a sell-off after that? >> well, i think we're going to see good results from america. you pointed out, last week's results and the big banks were all better than expected we expect that to be the case with bank of america, led by strong credit quality, modest loan growth, and an increase in interest margin. how the stock reacts is going to be interesting because it was surprising that the big banks sold off at the end of the day, considering the numbers were quite good so, hopefully today, if the markets are generally up, bank

of america will participate in that rally, assuming they deliver good numbers. >> gerard, you mentioned the net interest margins we are in an environment where interest rates seemingly are on the rise we might get relief in sermz terms of a slightly better steepening yield curve, better for the banks, yet these stocks can't find any love whatsoever what is behind all the hate for the banks? >> i think part of the concern is we're end of cycle. we hear that a lot from investors. and even though you described a very positive interest rate environment for the banks, there is some concern about loan growth for the biggest banks in particular, it's been modest the smaller banks are actually demonstrating very good loan growth, but the big banks, it's more modest. so, it's the end of cycle modest loan growth, even though the rate environment as you described is very positive for the banks. >> let's talk about the capital markets operations for some of the investment banks, and of courageous the money centers we know jpmorgan, we know citi,

bank of america fall in that category how much should we be scrutinizing the capital markets activities for these money-center type banks? >> i think it's important because it's a good portion of their revenues, depending on the bank it runs anywhere from 20% to the high 20% of revenues, so it is important. and as you know, it's broken into two categories, investment banking and markets. markets are the trading area and what we saw last week was, as you might imagine, equity trading was quite good, thick trading, fixed income, currencies and commodities was weak for all those banks, as expected investment banking results generally in the advisory area, that's the m&a, you just announced another deal a moment ago -- the m&a advisory business is quite strong and will remain that way for the quarter. >> all right, gerard cassidy, rbc capital markets, thank you for the preview. those banks critical to this market and the early part of earnings season. gerard cassidy, thank you so much. >> you're welcome. well, turning now overseas,

brexit negotiations are hitting a small, or we'll call it a big snag at this point, after a weekend of talks steve sedgwick is in london with the details. steve, it still comes down to the border between ireland and northern ireland, right? >> reporter: yeah, absolutely, dominic. and so many politicians have told me personally and others at cnbc for a long time that we're 85% to 90% there, we're really getting there. we've just got one final hurdle to get over, but it's the same hurdle that historically has been such a big problem, i.e., the border between the republic of ireland and northern ireland, the latter, of course, being part of the united kingdom, and politicians in northern ireland, including the dup, which props up the uk government because of their ten mps, do not want any differentiation between the rules for northern ireland and the rules for the rest of the uk they're worried that that would mean they were aligned to the eu and not to the uk as such. so, what was the solution? the solution from the prime

minister and eu is to come up with a customs union i.e., for a certain amount of time, the uk abides to have the same regulations and tariffs as the rest of the eu, but mrs. may can't sell that on an indefinite basis to her euro skeptic mps who want a clear end to the time when we will be a part of this customs union with the eu so they can go off and have trade deals with the united states, with the rest of the world on their own terms, and that's a real red line for the brexiteers so, mrs. may is having problems with the eu, with they are hard brexiteers and supporters in other parties as well. it's a tricky conundrum. >> let's talk about prime minister theresa may and the support she does have. is there a sense that her coattails are long enough, that she does still have the influence to be able to push through the brexit deal she wants? will she get the support of all of the skeptical ministers, perhaps even in her own camp >> reporter: you know, it's a question all of us commentators

looking at this have pondered a long time. the opposition to her in her own party with a soft brexit deal, a closer union with the eu, is about 50 to 80 hard-core mps at any moment, they only need 48 of them to sign a letter of discontent to the party, which would basically trigger a leadership election, but they haven't done that. 42 to 44 have done it, so they've got the numbers to do it as of when they want, but who wants her job at the moment? and that's the point a lot of politicians don't like mrs. may a lot of politicians in her own cabinet don't like her, her own policies, but who wants that job at this moment in time i think that's part of the reason why she's sticking in her job. despite the fact you've got boris johnson, david davis and a host of other conservatives who want in job. question is, do they want it now? >> still a highly contentious situation with brexit. steve sedgwick, thank you for the update. and still ahead on this show, countdown is on. we are just 22 days away from the midterm elections here in

the u.s., something wall street will be closely watching new polling numbers were just released we're going to run you through the headlines, coming up. and later, thestory that's going to have everyone at the office talking today there's another royal baby on the way. full details when "worldwide exchange" returns.

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head to the polls, rising enthusiasm with the mid terms especially among young and minority voters. 1/4 more plan to vote in the upcoming election compared to 2014. in a bizarre scene caught on the camera, a 5 foot giant python dropped down from a staff meeting in china the slithery invader sent them running. they believe the serpent was there to hunt for food when it entered the building it was carefully bagged and in the end nobody was hurt. according to a qsr magazine survey, burger king has been voted the fastest drive through chain of 2018. the survey is based on the time that you order the food to the moment you receive it at the window dunkin' comes in second followed by kfc, wendy's and taco bell. mcdonald's and chick-fil-a came in last and they lead all in sales. dom, that's what matters most. >> speed is key.

phillip mena, thank you so much. still ahead on the show. pressure mounts on saudi arabia following the disappearance of a saudi journalist. plus, a sign of the times for retail as sears files for bankruptcy protection. we're diggg inin to what's next for this iconic company. stick with us. we'll be back after this break ♪ a moment of joy. a source of inspiration. an act of kindness. an old friend. a new beginning.

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market alert wall street pointing to a lower open as volatility spills into a new trading week breaking news in the retail

world. sears officially filing for bankruptcy protection. the end of an era. full details ahead. international pressure mounting on saudi arabia following the disappearance of a saudi journalist we have the latest on this story. it is monday, october 15th, 2018 you are watching "worldwide exchange" on cnbc. and welcome back i'm dominic chu. brian sullivan is on assignment today. let's get you up to speed on what's happening with the world of trading and everything else with those headlines contessa brewer here with that news. here's what's leading cnbc right now. it's official, sears filing for bankruptcy protection. eddie lampert stepping down immediately. he will remain as chairman they will close 142 stores by the end of the year. saudi arabia continues to deny having a role in the

disappearance of journalist jamal khashoggi. they have called for a credible investigation to establish the truth about what happened. an escalation of tensions could push oil prices higher saudi arabia's benchmark stocks are already being hit. harris corporation and l3 technologies are teaming up in the biggest defense deal as well they will pay $201 about for an all stock merger. >> merger monday for sure. thank you very much, contessa brewer. let's get you up to speed on the latest market action futures pointing up. they are better than they were a half an hour ago we were slated to open down by 200 points we're off by 140 or so points. the s&p about 16 and the nasdaq by 68. on the treasury side of things, we saw a slight tick higher. that's what we're seeing right now to the ten year u.s. treasury note yield. it is at 3.15%

going global in asia, the nikkei in japan off by almost 2%. the hang seng in hong kong off by 1.5%. the same for the shanghai composite as well. that is spilling over into european markets the major forces, ftse 100 off by .1 of 1%. the cac is off as well check out what's happening with oil prices very big focus with tensions in saudi arabia wti crude, $71.81. 2/3 of a percent to the up side. let's talk more about the markets and the big week ahead joining me is steven whiting, the chief global investment strategist at citi bank. i reeled off a lot of market data >> you did. >> there are so many things traders are watching. >> worries over all of them. >> all of them. >> in your mind what is the most important sning. >> we have very disturbed

markets over what's happening with interest rate trends. we are yet to settle in where the feel is and where the federal reserve is going how much negative feedback do you need to have in equities markets before we settle into that range these are the sorts of things that, again, have left markets disturbed. then you come in and you have some geopolitical risk being priced into the market at a time when the markets have not come to grips at the moment again, a whole lot of those things will happen >> you said you have questions given the environment that we have that implies that you're not comfortable that we have reached a shorter term solution. >> i don't think people can assume you get a couple day selloff and you are all clear. new factors come into place. i do think the speed at which u.s. stocks corrected over the

course of last week though suggested it was going to be over with fairly soon. we have seen this before we have plenty of concerns to worry about where we are in the longer run, but the speed at which we corrected last week does tend to bode well. >> this environment creates opportunities either trying to aggressively profit or giving you a chance to reposition your risk allocations how exactly as a strategist do you tell your clients how to proceed given the environment that we've seen? >> we've seen very much according to an asset allocation, to a real plan, having a cheaper entry price helps. it's the multi-asset class it's really being global if you think about it, in the course of the third quarter the united states stock market was the only one moving up it moved up very sharply

put us where we were in the markets. going from here, we think that markets are over pricing economic risk at least for the coming year but we have to recognize that the federal reserve is getting tighter late in the expansion if you are a u.s. investor you have to say i can get maximum equipment yield at 6% in the municipal bond market. you shouldn't have any allocation that's the reason to have a risk controlled balanced yield. >> what's the difference in the market here in the u.s., equities markets, what do you think is the best opportunity? >> it depends on your time frame. if you area long-term investor you have to take a look at non-u.s. stocks that have had no return for five or ten years or you're looking at the u.s. market saying, well, i've had double in five years, triple in ten years. it's not to be negative on u.s. stocks at this point we're still fully invested and we have it as the largest part

of the portfolio you have to look at the catching up opportunity that's for the long-term investor you have to take advantage of this very, very good yield, relatively speaking you're finding that at the front end of the kur zblf stevcurve. >> steven white, thank you. time for this morning's top trending stories contessa brewer is back with those. what's trending, contessa? >> huge news out of the united kingdom this morning the duke and duchess of sussex, prince harry and meghan merkel are expecting their first child. i just saw jaws drop that almost never happens at this time of the morning the kensington palace twitter account leased the announcement earlier this morning the newest royal will arrive sometime in the spring of 2019 that doesn't really narrow it down spring is three months long. >> this was a fairy tale wedding that's still fresh in our mind and all of a sudden no surprise that you have an announcement.

>> first comes love, then comes marriage and then comes the baby carriage. the weekend box office saw the first repeat winner. "venom" took the top spot taking $35.7 million. warner brothers "a star is born" grossed 28 million me, hey, what's a movie? >> what's the last movie you saw in a theater >> i saw the first half of the incredibles 2 in a theater we had to walk out because it was too scary for the 5-year-old is that sad? but i catch up on the plane. >> i can't remember the last time i saw a movie. >> that's a new parent for you somebody put googly eyes to the statue of a revolutionary war veteran. i wish we could see it there we go. >> that's crazy eyes >> don't laugh the city posted a facebook

message warning this may look funny but harming our historic monuments and public property is no laughing matter in fact, it's a crime. they're asking for someone to turn in the vandal to face criminal trespass charges. if it turns out they caused more than $500 damages, it could be a felony. >> savannah is one of my favorite cities in america. >> googly eyes or not. >> so rich in history. the idea that you can have a situation like that develop, it is an artistic city. it is home to the -- >> but they don't find humor in the googly eyes. leave those at home. >> yes. >> sometimes you've just got to make due with the tools you have in this case it's doritos. a huge pig on the loose. i mean, like -- >> this is amazing >> -- the size of a small horse, right? the responding officer managed to lure the animal back to its home with doritos from her lunch

pack. >> that's being resource full. >> you know. what have you got? i've got doritos it looks like this pig has loaded up on too many doritos. maybe it should be carrots, apples. >> peanut butter and jelly sandwich i'm sure that pig would have gone with anything i would be following that particular officer who was handing out doritos. i like doritos i'm just saying. i'm also -- yes, anyway. i should just stop thank you very much, contessa, with those stories. in sports, sunday night football between the chiefs and pait glots foxborough. massachusetts was dramatic until the very end with seconds left in the fourth quarter. the game was knotted up at 40 points apiece when the patriots kicker steven goss could ykowski patriots 43, chiefs 40 nearby in boston the red sox hosted the astros in game two of the american league championship series the play of the game came in the

third inning boston down by two runs. jackie bradley jr. came up with two outs and the bases loaded. he hit one off the wall and the ball's weird bounce allowed three runs to score. the red sox held on to that lead to win knotting up that series at one game apiece congratulations, massachusetts, for last night's wins. coming up on the show, we are talking tech and trade new numbers show just how big an impact global trade tensions could have on technology spending. later on, it's all about earnings the big themes you need to watch as we get into the thick of reporting seonas stick with us, world"worldwide exchange" will be right back

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welcome back to "worldwide exchange." let's get a quick check on the futures right now. we are seeing a little bit of an improvement in the picture the dow jones down 129 points. we were down by almost 200 earlier on in the show the s&p off by 15. nasdaq down by 63. with the dollar yen watching this as an indicator of risk sentiment in the marketplace if you're a viewer, you can see the right-hand side of the chart the dollar has been losing value against the safe haechb yen. $111.72. yen lower in seven of the last eight days we'll see if that trend to safety in the yen continues. technology, a new report from gertner forecasts global

tech spending to rise more than 3% next year to 3.8 trillion dollars, but, here's the big but, that's down from the projected 6% growth expected in 2018 here with me now with more of those results, that report and a first on cnbc interview is john loaf lock. he's joining us from orlando, the site of gartner's annual symposium and i.t. expo. john, thank you for the call should we be worried about technology spending trends >> not at all. the technology spending trends are all in a positive direction. the slight downward division in 3q down to the u.s. dollar when global markets change, that affects us the cost in currency, we are still rock solid at 3.2% we have $4 trillion of i.t. spending the world is investing >> if it's currency, part of

that has to weigh in with the trade discussions. how much is trade policy, trade tension and everything else associated with the u.s.'s stance with the rest of the world affecting technology spending namely by those big corporations around the world? >> not at all. that's the great news. the tariffs in place and those considered still have not touched anything that the companies buy, products and services of i.t. that they're interested in are not yet affected by tariffs. so we haven't seen any deflection in the intention or the purchasing patterns that we are tracking. >> john, what would you say if i were to ask you what would concern you? what signs would you see that would be perhaps indicative of something that was perhaps a little bit worse i mean, right now we do know technology spending is still up there. what has to change if that was to go negative >> the world doesn't mind bad news what it minds is uncertainty right now in europe there's

slower growth in spending, 1.2%. that's a result of the brexit situation but where we see uncertainty coming in, that's when you see a slow down that's where you see businesses sitting on money it's usually temporary and you get those dollars back within a year but that's what i'm worried about is the injection of more uncertainty. >> so it sounds like we have at least a positive story for tech spending but there are worries possibly on the horizon. thank you very much, john loaflock we'll be looking for those trends to play out. still ahead on the show, financials in focus. bank of america about to report its results. what you can expect as eniarngs season gets into full swing. stick with us, "worldwide exchange" will be right back

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not far from that shot in times square is the "squawk box" team. they are over at the nasdaq market site. andrew ross sorkin among that "squawk box" team there. he's here with a preview andrew, i'm sure the saudi arabia story is going to be front and center with you guys i was on with you last week when you told us that you were pulling back from your obligations with the investment conference there now we know that jamie dimon of j.p. morgan chase is stepping down from his assignments there as well. >> we're going to be talking a lot about that decision, jamie dimon's decision as well as trying to take you behind the scenes of some frantic telephone calls that took place between a number of business executives, the saudis and the u.s. government all involved in this situation. of course, all of this coming amid tensions that are growing between the u.s. and saudi and the comments that president trump made on "60 minutes" that are reverberating in the saudi market falling as well as a result of that we'll have that story in a very big way.

we'll also be talking by the way, and it might happen while "squawk" is on, the potential bankruptcy of sears. that's on deck we have muhammad alarian in the house. pat toomey kevin rudd will be joining us to talk a little bit about the relationship between the u.s. and china and where things are headed there isn't that enough? >> you guys always have so much stuff. it's a wealth -- it's an embarrassing wealth of riches. >> i'll take that. >> i would, too, i think it's going to be a big show as always andrew, thank you. >> thank you. >> still up on this show, let's get you up to speed on the market action. we have a futures picture that's pointing to a lower open but it's better than it was a half an hour, 40 minutes. the dow slated to open down by around 120, 130 points at this point. overall the s&p off by 15. if you take a look at the asian session it was down much more so

in japan than the other major forces nearly 2% decline for the nikkei in japan shanghai off by 1.5% european trading we have seen a gradual improvement there. two specs of green for some of the major forces the dax and the ftse 100 both marginally in positive territory. earnings season here in the u.s. kicks into high gear this week with more than 50 companies in the s&p and seven dow components reporting results the consensus forecast is for q3 earnings growth to grow 21% which would mark the third straight period of growth above 20%. joining me now is lindsay bell, she's the investment strategist at cfra research lin lindsey, are the expectations too high >> no. this is the first time we've seen growth above 20% where numbers have come down a little

bit going into the earnings period they haven't come down as much as you have seen historically. twoprior quarters numbers went up we think this is going to be a good quarter we'll get earnings growth close to the 25% that we saw in the second quarter it's really being driven by strong fundamentals here in the u.s. as well as the tax reform package that we got at the end of last year which is really boosting the bottom line you got a little bit of buy back to support more bottom line growth. >> lindsay, what part of the market has to do really well this earnings season for it to be a positive narrative for the rest of the overall market is it technology is it consumer discretionary is it the financials where are you looking? >> well, i mean, ideally we'd like to see broad based success across the 11 sectors. we're going to see positive

growth in all 11 sectors this quarter which is a very good sign financials kicked off earnings season last week results were good. it was a reminder that the domestic fundamentals here in the u.s. are very strong consumers are good and so are corporations the commentary you heard from the ceos is very impressive. they've talked about how cap ex is still on the rise geopoliticalchina trade concerns aren't impacting the business it was jamie dimon that sounded the warning about the risks that do remain in the market that are related to higher interest rates and the geopolitical concerns. overall we got good numbers out of the banks the regionals are the area of concern that we need to watch this week. pnc reported, one of the best in breed within the regional space and they kind of disappointed with guidance and their long growth so it didn't bode well for the other regionals. like i said we'll get that this

week this is a battered group it would be nice to see them show some signs of life. >> what exactly are you going to be looking for in terms of commentary i know the forecasts are always key. they're forward looking. is there anything thematically you would be looking at in terms of those forecasts >> this is going to be the first quarter where we really see the impact of tariffs or at least hear about it and might be able to quantify it part of the recent pull back in the market has been related to that because we did get some q3 pre-announcements from industrial companies that pointed directly to china and the tariffs impacting their businesses we're going to hear a lot more of that on earnings call this quarter. that's kind of the question. that's going to impact guidance all year long like i said. the numbers have been going up revisions have been increasing to the positive side it's all been great. this is the quarter where the rubber hits the road and we're going to see what corporate earnings are going to look like

over the next quarter and then, you know, maybe get some glimpses into what to expect for 2019 when the trade tariffs with china move from 10% to 25%. >> lindsay, just a few moments left here. what about sales growth? what are you watching for there? >> 8.2% sales growth in the third quarter is a good number second quarter was 10% we haven't seen a double digit sales growth number before that since the financial crisis, before the financial crisis. if we can get sales growth to stay you know those high single digits to 10%, that will bode well for margins because margins were at peak last quarter. that's a number again when we talk about the outlook that analysts and investors are going to be interested in. >> gotcha. lindsay bell cfra research on the upcoming earnings season. that does it for "worldwide exchange" this morning let's get you up to speed on the

futures. dow opening below by 105 ten year u.s. government note yields at 3.15%. that does it for this show "squawk box" is coming up next x1 is here to help.

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good morning u.s. equity futures are down triple digits. it's 3 or 4 tenths of a percent but down after a tough week that you i'm sure witnessed and heard about it ahead this morning, bank earnings and retail data that could be important in today's trading. international pressure meanwhile is mounting on saudi arabia following the disappearance of a saudi journalist we'll take you live to riyadh for the latest plus, sears filing for bankruptcy and eddie lampert stepping down. it is monday, the eyes of

october, only four months are the eyes on the 15th the middle day ides of october. 2018 "squawk box" begins right now. live from new york where business never sleeps, this is "squawk box. good morning, everybody. welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. take a look at u.s. equity futures. we are seeing red arrows dow futures down by 105 points right now. s&p futures indicated to open 13 nasdaq off by another 60 points. this comes after the worst weekly declines we've seen ford dow, s&p 500 and nasdaq since march last week. we did see some strong gains on friday but that was not enough to make up for what we had seen earlier in the week. right now you're loo