that simplify your experience. my name is mike, i'm in product development at comcast. we're working to make things simple, easy and awesome. it's a new week in wall street and the bulls and the bears are ready for another fierce battle. we've got that covered breaking news, ibm buying software company red hat for $33 billion. also, a developing story out of asia. a passenger plane with 189 people aboard crashes after taking off from gentleman cajak. we'll tell you what it means for the economy of the world's fourth largest democracy plus, congratulations to boston and the red sox. you are world series champions

bringing home the world series trophy dominating in five games. monday, october 29th and "worldwide exchange" begins right now. ♪ ♪ good morning and welcome to "worldwide exchange" i'm dominic chu. i'm sitting in for brian sullivan who's off on assignment elsewhere. let's check on markets here's how the early money is setting up futures pointing to let's call it stable. that's got to be a win for a lot of folks out there the dow opening up by 19 points. the s&p up by 5. the nasdaq up by 33 or so. on the asian side of things it is mixed but a key market is still very much in the red and that is china. you can see the shanghai composite there down by over 2%. the hang seng and hong kong eking out 1/3 of a percent the nikkei down 2/3 of 1%. much more green on the screen over there we have the major markets like

the dax and germany. the ftse 100 up by 3/4 of a percent and the footsie mib and the ibex is up beyond the equities side of things, treasuries with a ten year u.s. treasury note shaping up as follows. just a hair lower. 3.06%. the 2 year note 2.79%. we see the macro trade playing out a little bit more as well. we on the energy side of things see crude oil, wti at 67.16. that's off by 2/3 of 1%. ice brent crude futures, $7.10 also about a 2gs 3 of a percent decline on that particular index. as we head to the currency side of things, dollar strength versus the euro. $113.77. dollar yen

111 spot poi93 at least in the early part of trading. we'll have much more first to today's top corporate sto story. ibm is buying red hat for $190 per share in cash. that's a 63% premium to friday's closing price. that deal valued around $33 billion excluding the debt side of things. this is ibm's biggest acquisition ever red hat will become a unit of ibm's hybrid cloud division and don't miss a first on cnbc interview with ib b bm ceo ginni rometty. last week's wild ride on wall street left investors daze dazed and confused consumer discretionary stocks are now the worst performing group in the s&p 500 the sector now down 10% just in

the month of october alone frank holland joins us with a look at why this could be one of the most important groups to watch this week. frank. >> good morning, dom as we look at the recent selloff, that one area that really sticksout is the consumer discretionary sector. you see on the chart, steep declines for the entire month. it has been, as you said, the worst performing in the s&p in october down 10% a lot of that due to a week earnings from amazon after the bell on thursday night on friday posting the worst day since 2014 this has all been part of a rough ball and netflix down nearly 30, amazon, over here, apple. this has been the loan bright spot down only 7.4%. this has been one of the better performers app thereports after the bell facebook reports on tuesday

after the market closes. a lot of eyes on this stock after recent questions about data privacy in the u.s. and over in europe shares have been down double digits since a disappointing earnings last quarter. dom, a lot to look for here. >> a lot of blurred lines, fran holland. let's discuss the market action further joining us is david nelson, the chief strategist at bellpoint asset management david, frank brings up a very interesting point with regards to how consumer discretionary fitting into the broader mold of technology, media, telecom and everything else has been a driver of this market. should we worry that consumer discretionary is now the worst performing sector in the s&p so far this month >> i think there's worry in a lot of sectors amazon missing the one thing you can't do when you're a growth company, miss on the top side

you can't guide. we've had an accident in the markets right now. it's not life threatening and there's some bleeding. for me the elephant in the room is still the fed and interest rates. that's what started this that's what started the systematic selling earlier in the month. the last couple of weeks i've had an opportunity to speak with some companies and pension executives they tell me once interest rates hit a certain point they saw an opportunity to de-risk they can match future liabilities with corporate papers. >> when you say de-risk, get out of the stock market? >> they've been taking money out of the stock market because for the last ten years they can't match liabilities with corporate paper. that's something they can do i got that wrong i thought 3% 3.5% in ten year paper for u.s. treasuries wasn't enough to cause an asset allocation shift. that was clearly wrong because it's happening >> what you're saying is when we

saw 3 1/4% yield, that was the trigger. >> that was the trigger. that's when it started. >> a lot of institutional investors take money out of, say, stock and other risk parts of the market and put it into treasury and longer dated corporate securities >> because it's traditionally what they do they usually use fixed income to match future liabilities the last ten years they haven't been able to do that because the fed has pushed them out. i got that wrong and my concern now is what if we get another 50 basis points higher? how much more comes out of the stock market because of that >> let's talk about that because it seems that given the current environment that we're in, we had talked about the idea that the fed possibly raising rates too fast was the trigger for this particular selloff. if we look at the safety bid for treasuries right now, if the stock market continues to slide, it's which one is the tail wagging the dog now? are treasuries going to catch a bid and yields move lower? >> it's already started a little bit. it started last week look, i'm not the only one that

feels this way this is a conversation they're having inside the fed. they came out and said we needed a change it's not a race. we're trying to work our way out. we understand the need for normalization but the pace has got to be slower it could take us five, six, seven years to unwind this. >> david, here's a question. president trump has made it no secret that he does not like what the fed is doing. >> he's not wrong. >> let's say that he is right or he's -- it doesn't matter. the point being that the fed is not a political instrument yet president trump and his rhetoric has made it so that it feels like the fed may have to pause just because the president has told them to do so is that the sense that you're getting from this? >> the president is ill informed here he should not do this. as much as i agree with him, the only thing more dangerous than an independent fed is one that's

become politicized not only that, the president is not accomplishing what he wants to do because he's backing jay into a corner. they've got to raise in december i'm not expecting a pause in december what they'll try to do is maybe walk back some of the rhetoric maybe you'll hear a fed governor or two coming out. maybe neil's the first one, the canary is screaming loud zbli loud screams from the fed and policy david nelson, thank you so much for joining us here this morning. >> thank you. well, technology stocks have been center stage like david pointed out amid all of this market turmoil the s&p tech sector losing nearly 10% just this month alone. meantime, two of the big cap tech stocks, facebook and apple, two of the biggest ones out there are set to report earnings this week. so joining me now is dan i was,

manawas, is it safe to say that these earnings reports from apple and facebook will go a long way towards that technology moment >> i think so. we in the tech sector are on apple. friday the roof came off for fang now it's about the cycle what do asps look like especially in china so in our opinion i think it should be a step forward for apple in the tech sector. last week investors white knuckl knuckled >> the white knuckles haven't been as much certainly on the retail side with amazon. as you take a look at the metrics out of apple, is there anything you think could happen with apple's report that could send this market higher? can they turn this around by

themselves being the biggest stock in the s&p and the nasdaq? >> in our opinion, december guidance, you have that line in the sand, about 80 million iphone unit. everything we're seeing, sell through, data, xr, it's a big tattle it's not before the tech center. that is the whole food chain you see a dislocation, winners and losers in tech look at microsoft, intel, then apple versus some of the others that have obviously disappointed. >> as you take a look at the overall ecosystem right now, we talked about the fang so much. facebook has not been a participant in -- at least as of late this year, since the summer in the rally and the up side with facebook, is this a key quarter for them to show that something can happen positively in the wake of all of these data scandals and everything else >> look, i think it's a key

quarter for them but a lot of these names, right now regular investments is what they're worried about. these are key reports obviously for apple, for facebook but then you kind of contrast that with ibm making one of the biggest acquisitions with red hat. it just shows that the mna is out there. you're going to see bids in financial. this is what i view as a massive quarter in terms of tech with apple and facebook. >> what's your take on apple and red hat? >> they had to make a move for them to be doing this was a poker move now ultimately microsoft, amazon just shot across the bow from

ginni and ibm showing there's another player in town. >> thank you so much, dani ves at wedbush securities. in other top corporate news, elon musk going on a tweet storm on friday. among the highlights, that infamous one about taking the company private was in his words dauld it worth it. they're wondering whether they misled investors. general electric set to report quarterly results tomorrow an article in the wall street journal suggests some investors might welcome another ge dividend cut among the reasons, they want the company to spend carbon fixing the businesses those shares have been down big. down by 35% so far on a year to

date basis up premarket right now . in earnings hsbc projecting plenty of it there are cost cuts and it's up by 4%. a big move higher hoping to pro tell many of the bank stocks on the european side of things. we are just getting started. up next we are going global. chinese stocks dropping more than 2% overnight. we're going to bring you live reports from london and singapore. the mid terms and your money could next week's election have an impact on your money? we're going to debate that when "worldwide exchange" returns in a minute place, the xfinity xfi gateway.

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leave no room behind with xfi pods. simple. easy. awesome. click or visit a retail store today. welcome back if you're just waking up or heading into work, the futures picture is looking somewhat bright dow jones slated to open up by 47 and the s&p up by 7 the global picture, we have all of our market reporters and experts around the globe julianna standing by in london with the european markets. we'll start with nancy hungerford in singapore with the action in asia nancy? >> reporter: hi there, dom

after a tough week last week not much improvement today two major markets in positive territory in hong kong and australia. elsewhere, a lot of the weakness concentrated on main land china. shenzhen up around 2%. we should note that over in japan the nikkei 225 is lower. as we felt the momentum, the nikkei 225 and the kospi picked up moves to the down side. part of the story is due to the weak industrial profit data. concern over the industrial sector in china. traders continue to keep an eye what is going on with china's currency authorities came out tried to resure the market the fact that had he had any

tools. it didn't do much for the currency in fact, twooe felt weekend. that has been sentiment. main land markets are already out. >> nancy, what is driving the action there in main land china? what's the concern over there? is it still the idea that trade is the issue is it the idea that trade is slowing down why is that main land market doing so much damage right now >> reporter: i think it's a combination of all of those factors, dom even though they've come out sending many signals that they are willing to stabilize the market, it hasn't seemed to have an impact so far we're talking about the moves on the equity side. if we hit the 7 mark for the yuan on the dollar, that could encourage additional outflows of the market the growth slowdown that you talked about, industrial profit

data weakening in the fifth straight month has raised concerns about the domestic slow down you will notice even though we had weakness, the hong kong market did end up higher still, signs of a divergence there. >> nancy hunger ford live there. thank you so much. let's get a check on what's happening with europe from generally red to generally green. julianna has more from london. >> reporter: good morning. so far this morning investors seem to be shrugging off the weakness that nancy just invested in the asian trading session. contrast to last week when it was really a global narrative that drove stocks across heej gone the u.k. budget sharply in focus and fallout from this weekend

aems german reaches. i want to focus on italy this morning. the broader, european space after the s&p and credit rating decided to keep italy's credit rating on friday they lowered it from negative to stable this is a piece of positive news for investors. that's driving italian assets higher, in particular banks. stepping back out to the broader european space, banks and autos are outperforming today. a real slant to the cyclical sectors that under performed last week. in contrast, more defensive sectors are under performing as i say, this morning much different picture than the close of last week so farris being on seems to be the decision julianna, thank you so much for the update. the lone bright spot, the one s&p sector on a big winning

streak we're going to tell you what it is and why you need to be paying attention to it this week but first the far right candidate winning brazil's presidential race yesterday we're going to tell you what it means for the economy and the stock market of the world's fourth largest democracy when "worldwide exchange" comes right back numbers to examine investment opportunities firsthand. like a biotech firm that engineers a patient's own cells to fight cancer. this is strategic investing. because your investments deserve the full story. t. rowe price. invest with confidence. every call is different, so the only thing that we can do to make sure that we get there safely, and that we leave that scene safely and go home at night, is train.

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picture is generally positive right now. the dow jones opening up by 45 points if the gains hold into the opening bell the s&p up by 9 points and the nasdaq up by 55. well, in global political news this morning, brazil's far right candidate bolsonaro winning the presidential runoff election with 56% of the vote. he is pledging to reform government finances and crack down on crime and corruption if you want to follow the market reaction to the election check out the ishares msci etf ticker ewz currently up 6% in the premarket. currency will play a big tloel. let's get a check on the top headlines. frances rivera live in new york. >> hi dom good morning to you.

lion air flight has crashed after leaving jakarta. some debris from the planes been found but no word on casualties or any survivors. the suspect in sat's massacre is expected to be in court today. robert bowers faces 29 federal counts relating to 11 worshippers being killed prosecutors are seeking permission from the justice department to pursue the death penalty. today a florida man is set to appear in court for the first time cesar sayoc faces as many as 50 years in prison if convicted of all of the charges related to sending poms to former political figure those are your headlines this morning. back to you. >> frances rivera at nbc news. thank you so much for that. up next on this show storm clouds, are they on the

horizon? why last week's run up could be there to explain. the winner is boonst highlights from the big game when "worldwide exchange" returns.

the bulls versus the bears it's a new week and the battle is officially back on. your wall street playbook is coming up. markets, mid terms and your money. could next week's big election weigh on stocks? we're going to debate that and a red hot win.

the boston red sox winning the world series late last night, and if you went to sleep early, don't worry, we're going to have all the highlights from that dramatic game. it is monday, october 29th, 2018 you are watching "worldwide exchange" on cnbc. ♪ we are the champions, my friends ♪ congratulations, boston, by the way. good morning, welcome to "worldwide exchange. i am dominic chu sitting in for brian sullivan here are your top stories on cnbc.com right now ibm is buying software company red hat for $190 per share in cash that's a 63% premium to friday's losing price the deal is valued around $33 billion without the counting of debt this is ibm's biggest acquisition ever. tesla ceo elon musk going on what you might call a tweet storm late friday. among the highlights, musk said

a $20 million fine he had to pay over his august funding secure tweet about taking that company private was in his words worth it he also called the justice department's probe into whether the automaker misled investors about production total bs. hsbc reporting a better than expected 28% rise in quarterly profits. among the drivers, cost cuts and market share gains in its asia business hsbc shares in european trading up by 4%. let's get a check on the early market action as well. stock futures pointing to a modestly higher open the dow had opened up by 75 points the nasdaq up by 71. on the asian side of things, we'll call it mixed. a key market was down big again. that is the shanghai composite main high is down 2.2% nikkei is up and hang seng in

hong kong up 1/3 of 1% general green. the dax in germany up by 1%. the cataract up ac up on the fresh ri market, yields are ticking just ever so slightly lower on the ten year u.s. treasury note 3.07% the last year trade there. it's yielding two.0% that is a bright spot in the s&p 500. frank holland back with the story of the consumer staples. >> good morning, dom this sector is on track for the longest monthly win streak and stocks showing steady gains. phillip more rigs up 9.2%. walmart seeing a 5% gain walgreens up more than 4% even after a mixed earnings earlier

this month a really great month for consumer staples but not all of them are created equal colgate pal moll live has been one of the worst performing in the sector this month. shares falling after missing on revenues this quarter. he is day lauder down 14%. procter & gamble have an exceptionally strong month that's despite a dip the stock on track for its best month in nearly five years as well looking forward, investors will be watching to see if these consumer giants can keep this momentum going mondolese and kraft hines reporting on thursday after the market closes. coca-cola dealing with consumers who were actually moving away from sugary drinks we'll have to keep an eye on that one dom, back to you. >> frank holland, thank you so much for that update on the consumer staples a market alert coming out a fe

moments ago. check out what's happening with the euro it has dropped to a session low following reports that germany's chancellor angela merkel will not stand for re-election as the party chair. merkel wants to give up lead of the period you were not down $1.13. with us is joseph tretasani. he's with fs street. age angela merkel is not giving up the chancellorship. this is interesting about what's developing in germany specifically. >> it definitely is. germany is the back bone of the eu in their approach to how they

handle currency issues and how they handle italy and greece, if she is in a weakened position, which she certainly seems to be, this has been going on for more than just recently, it's been going on for a year and a half, two years where her party loses elections, she maintains her chancellorship in foongt, after the last national election there was a long period when they were struggling to put together a coalition. they finally did well, this is nothing that's going to support strict eu policy, especially against italy right now. italy wants to revive the economy. it elected a populus government, odd coalition to say the least to do that and italy is doing that from their point of view, what they're looking at in the eu, this is a national issue for italy. if the europeans, if germany and the rest of the eu is running out of power, it's going to be a real problem and it's going to hit the euro. >> hitting the euro is one thing.

we've been talking about this trend near, medium, longer term of dollar strength >> absolutely. >> it sure seems as though the dollar is the currency of choice when the tough get going, everyone gets going to the dollar is this going to reinforce that trend? it sure seems with emerging markets aside, even on the developed side of things shall, the history of the dollar or when it is difficult over seas, this goes back to the financial crisis this has been true for years and years, for decades this has been the case when markets get concerned they still consider the u.s., u.s. treasury assets, the dollar as the place to be. if there's a storm coming, you want to be in the safest port and the u.s. historically has been that case it still is now. >> let's connect some of these dots stronger doll larm because of

these. a if he had that is on track to keep racing. >> absolutely. >> more and more are citing the stronger dollar as a headwinds for that can we connect those dots? can we see perhaps a weakening perhaps of corporate profits because of things that are happening with the currency side of things? >> it certainly plays a part because there are translations most big american companies, most internationals have earnings from overseas they're affected by repatriation and the exchange rate. it's not the largest factor in corporate profits. they depend on the strength of the economy, on their sales, on their pricing ability. although i think it's an issue and it's something markets can look at and say it's a cause for worry for us, in the bottom line it's not that large an issue it's something that can motivate markets to trade which is what we're seeing a lot of right here. >> joseph from fx street, thank

you for the update good to have you as the breaking angela merkel story. >> interesting thank you very much. now to today's top trending stories. frank holland is back with a look at what everyone is going to be talking about today. it's perhaps appropriate that you are a bostonish guy or have been for the last few years, right? >> i used to live there. i'm not a boston sports fan. >> your' from philly. >> i'm a little bit of a hater we're going to start with sports news red sox are world series champions. defeated the l.a. dodgers to win the fourth world series title in 15 years the curbs of the became bean kn know ever since 2000, 2001, it doesn't matter if it's hockey, baseball, basketball. >> are you getting sick of it? i'm getting sick of it >> i'm a bay area guy. i had a nice run on the football and baseball side of it when i was growing up

i don't mind seeing some of this happen. >> now you have basketball. >> i've been living in the new york area now for almost 19 years so i'm a little jilted to new york. >> finish this one off, the sox won. >> yes >> the red sox and dodgers weren't the only rivals at dodgers stadium. jimmy kimmel, a dodgers fan and matt damon a red sox fan were many of them in attendance sporting i'm with stupid t-shirts as they took the game in. >> this is amazing. >> in the end it was damon who went home happy. if you ever watch their show, at the end jimmy kimmel says he ran out of time for matt damon. >> great gag they always do. >> great to see them there in the stands. >> it was certainly a great series from a markets perspective only because you had a major market that was in la. if there would only be more

celebs yankees and dodgers. they just televiseds that. >> huge. huge. lotto fever has finally come to an end at least for now two winning tickets sold in powerball, $750 million drawing j jackpot. one in central iowa and one in harlem, new york a lot of people making new friends. >> whenever i travel, whenever i'm on assignment it doesn't matter what city it is i buy a powerball. >> do you? >> i do it because it's never somebody in new york. >> this time. >> it's fun to see if it's somebody in new york that won the powerball. >> i don't buy tickets but when was $1 billion i bought a few. 790 million, there's a massive billboard that shows that and

now we're back to the starting all over again. >> october definitely not a disappointment for movies. according to com score, the box offices hit $790 million the highest ever for this month. this record run has been fueled by universal's halloween as long as strong earnings from warner brother's "a star is born" and "venom." this october has already blown away the previous record of 757 million set in -- >> are you a big movie guy >> i am a big movie guy. comic book movies. >> horror and -- i think horror and the marvell type, super hero movies is what i would see >> i'll pay for special effects in the future. still ahead at the show, the mid terms and your money why next week's election could be very important for a lot of

investors. before we head out, a look at this morning's dow winners and losers stick around, "worldwide exchange" will be up next. we're drowning in information. where in all of this is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you partner with a firm that combines trusted, personal advice with the cutting edge tools and insights to help you not only see your potential, but live it too. morgan stanley.

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let's bring in james from the american enterprise institute. he's a cnbc contributor. jimmy p., i've got to figure out whether or not this particular market move is going to resonate with voters a week before they head to the polls. >> listen, i think to the extent that you can try to draw some conclusions or find some correlation is that when you have a really choppy market to down market in those sort of weeks, maybe few months leading up to an election, at least in presidential years it's not been good for the incumbent president. i'm not sure about the mid terms. given that the president has made his case which is one of the things the republicans can talk about it's been dependent on the market being strong. i think a weak market hurts republicans. >> a weak market is still relative since president trump was elected the markets are still up markedly we just got the first read on gdp saying it's growing at 3.5%.

is the narrative at least still constructive for con ser va tifs as they head towards trying to figure out how they retain control of both houses of congress >> yeah, listen. you would think if that were true, republicans would be talking a lot more about the economy. strong gdp i think has got lost in the shuffle with all of these other events happening republicans have been talking about a lot of other things, including immigration rather than the economy listen, we have a very low unemployment rate. growth still seems to be good. you really would expect the president to be tweeting nonstop about the economy. that's not happening which leads me to believe that issue also isn't polling well or not as well as you might expect. >> james, just one -- a couple of seconds left here. >> yes. >> what's your prediction for how this shakes out this mid term season? >> listen, i think republicans keep the senate.

you'd be krady not to that i democrats are going to take the house. gridlock is good for the market. >> james with the american enterprise institute, thank you for joining us. time to find out what's coming up on "squawk box." becky quick with a preview i've got to figure the markets are going to be in focus, but the mid terms a week away. that's going to be big as well, right? >> it is i think today we're going to be looking back at what's happened in the last week, the technical damage that's been done. where we're looking at the indices. the nasdaq is now down 11% just for the month of october that's the worst month we've seen since october of 2008 for the nasdaq although if you look at it, the nasdaq still up 3% but the dao is down. the futures are up

we'll have a technical analyst jason hunter to run through what the damage has been to this point. the huge deal news of the day, i ibm buying red hat we'll be talking about that with ceos first, ginni rometty, jim whitehurst from red hat. $190 a share in cash it's a 63 a share right now. it will open up $6 what it means, why they're buying into this, what it means for the hybrid cloud and how they keep jim whitehust and his team around. they will stick around they will report to gin ginni rometty. plus jim hutchins is our guest he's a tech expert so we'll give him a lot to start with.

>> i'll be with you at the top of the hour as well with the markets. coming up next, german chancellor angela merkel suffering a political blow in a weekend election now she's set possibly to give up leadership of her party why investors need to pay attention to this story when "worldwide exchange" returns rebekkah: opioids has taken everything and everyone i've ever loved away from me.

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♪ ♪ fight security threats 60 times faster with ai that sees threats coming. the ibm cloud. the cloud for smarter business. that's a live shot of times square new york city still dark but the world at least trying to wake up now on the east coast of the united states. quick check on the futures shows at least a bright light there. 140 points to the up side of the dow. hold the gains into the opening bell a nice change after yesterday's or friday's steeper losses on the european changes, a lot of banks propelling those out of

not just hsbc and the uk but we're following a developing story out of germany angela merkel reportedly won't stand for re-election as her party's chairperson. she wants to give up leadership of her party but still remain chancellor of the country. the euromoving to the down side it was as high as $1.14 and change earlier on the session dipped down to 1 poin113 point - $113.14. is this idea that europe versus u.s. is exacerbated because of the stories of their economies because of the weakness being displayed by germany and the political environment there? >> dominic, there's been a huge

gap between german outperformance that to me is the story partly behind what's happened with the currency i look at it much more fund amount li. the diversion trends have been in place much of the year. they've shrunk so quickly and it's related to politics, which is the mid terms historically once you get into november, the returns regardless of the outcome in equities tend to be quite strong over the next five months once you get past the mid terms. >> joe, a big thesis or a big part of the thesis for why the u.s. has outperformed over the course of the past six months, nine months, a year, two, three, four years is because of the relative stability of the united states it is a place you can go because it is the reserve currency it's the most liquid market.

does all that hold true? >> certainly the u.s. politically is very stable my guess is a month from now we'll have a much different view about political stability and how lucky we are relative to other pockets in the world which aren't as stable yeah, i'm not worried about it. >> ijimmy p. told us ten minutes ago he feels this environment right now is one where the u.s. is fairly constructive even with some of the mid terms coming up. there is the spec tore tor of uncertainty. is the u.s. economy still on strong footing >> for sure. we grew over 4% in the second quarter. it's interesting it was just plays.

if you have growth in the second quarter, i'm paraphrasing, that tends to benefit the incumbent party very well. i heard him say the republicans lose the house this is such an extraordinairy environment, i'm not sure i would go there the betting markets think the republicans lose the house but that might be very good risk/return in terms of that outcome changing in other words, republicans doing a lot better than people think in part because the gdp that you highlight but also the unemployment rate. we're at a 50 year low in the unemployment rate. when has that happened the historical record is not as accurate as it will be >> let's bottom line we know this is complex. the market economy, they do somewhat reconcile at some point. is the economy still good enough for a market that continues higher on this bull market >> yes absolutely the yield curve has not

inverted part of the recent weakness is into the mid terms the catalyst, dominic, has been really the fed that the liquidity that the fed has provided over a hands full of years, rates are rising at least relative to the world rapidly and this is a fed. if the fed steps back at some point, meaning they slow down in their pace and hikes, we'll have a much better market environment. to me this is all about -- not all but almost bawl monetary policy. >> joe, we have a few moments left on the show here. does the fed raise rates in deesz? >> they do and hopefully at that point they'll announce they'll pause for a period of zbliem okay that does it for this show the markets setting up for a bit of a bounce. the futures pointing to 125 point gain for the dow the s&p up 20 points and the nasdaq up by 90 as markets try to get back some of what they lost during last week.

it's been a very rough month for the s&p, dow and nasdaq this october. it's something we'll keep an eye on as weea hd out. more coming up on "squawk box" in the next hour i'll see you in a few moments there as well. place, the xfinity xfi gateway.

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good morning, mergernews ibm buying red hat a first on cnbc interview with both ceos. global election results. we'll tell you about votes in bra still as well -- brazil thae sparking moves congratulations to the boston red sox. thoer they're world series champions again. we'll show you the celebrations. monday, october 29th, 2018

♪ sweet caroline ♪ good times never seemed so good ♪ 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. our guest host for the hour is jason trenner. he comes from strategic partners thank you for coming in. >> thank you for having me. >> andrew, thank you for coming in. >> i'm feeling better. not 100% >> i still hear it in your voice. >> yeah. >> let's take a look at the u.s. equities markets the bulls are staging a slight comeback emphasis on slight the dow few furs autures are ind up after the carnage, there's a lot more catching up to do s&p 500 up by 21 both the dow and s&p 500 are still negative this ye e