it's 5:00 a.m., here's your five at 5:00 the dow hovering at the flat line right now after surging more than 500 points during yesterday's session. we'll find out what's fueling that big rally new fallout this morning after president trump fired attorney general jeff sessions we are live in washington with all of those details the fed front and center once again policymakers are a few hours away from announcing the latest rate decisions. tesla naming elon musk's

replacement as board chair that's a big deal. and comcast making a big bet on streaming video we'll have the full details on those stories and more it's thursday, november 8, 2018. "worldwide exchange" begins right now. good morning welcome to "worldwide exchange." i'm dominic chu. brian sullivan is out today. let's check the markets. a bit of red dow indicated to open down by 37 points the s&p off by 9 nasdaq off by 29 points after a massive rally yesterday. a huge move off the heels of that midterm election. the treasury side of things, the ten-year note yield is hovering around 3.22% two-year note yields, 2.95%. let's go worldwide we have the asian markets.

they did see a pop there on some of the results that we had out in the u.s the hang seng in hong kong is up by a third of a percent. the shanghai composite off by a quarter of a percent on the european side of things, we're seeing a general amount of positivity coming out that's turned negative. the dak off x is off by 0.20%. the ftse 100 is just about flat on the session outside of stocks, here's a look at the global markets. wti crude a big focus for oil, $62.04 still moving lower, but we're getting a half percent pop today. the euro is 1.1411 and gold is at 1,223.50 an houn

ounce. bitcoin is 6,453.35 per token there. look for earnings from discovery communications, activision, blizzard, dropbox and disney disney reports after the closing bell we'll hear from bob iger on "closing bell. and on the economic front, it's all about the fed. a rare thursday election meeting today. we'll get their decision at 2:00 p.m. eastern time. sticking with the fed, jim cramer weighing in on everything from the central bank to the midterm elections last night on "mad money." here's jim's take. >> bottom line, now that the big, bad event is in the rearview mirror we can surge higher like we did today we're still hostage to the federal reserve. even if i think it's more likely that jay powell will see reason and recognize that an expansion is a terrible thing to lay to

waste. >> all right jim cramer focal about tl vocald as always. jim has been talking about this idea, ken, that will are underlying signs in the economy that may not show all that much strength is he right and should we be fearful that the fed will raise rates too quickly? >> i think that's always a smart thing to be fearful of bull markets end when the fed overreaches. so we need to look at we're not just in a one dimensional economy. there's f.a.n.g. stocks, everyone is looking at the market, the tech sector, the communications world, if you look at what's happening in a lot of the market, more than-of the s&p 500 is in bear market territory being masked by some of these bigger gains on wall street it's important that people do look and understand what's in their portfolios, because if the fed does overreach, you want to

be careful you're not so expo exposed. >> the fed is in focus today for good reason. we have a policy decision where the con ksensus is nothing will happen we'll see if the fed raises rates in december. the midterm elections seem to be a big catalyst for the markets 500-point rally for the dow. it was the biggest one-day performance post midterms for the market since 1982. with all of that in mind does this mean the recent lows in october represent the bottom and investors can jump back into stocks >> it depends on what you call the bottom as i said, most of what's happening in the s&p 500 is really already in bear market territory and has been for a while. if you're saying it's the bottom of the big f.a.n.g. stocks, i would say i think we're starting to see the market looking at rotating out of some of these growth names the big f.a.n.g. names will not double in the next five years -- let me rephrase that, will not

grow in the next five years the way they have grown in the last five from a percentage point of view for investors to count on that to power portfolios i think october is a gift for investors. it was a wake up call. if october made you lose sleep at night, if october got you thinking that, my god, my financial future is not on track now, october was a great gift because we have gotten it half back already after the election. now is the time to rebalance now is the time to look at your portfolio and say am i where i need to be for the long term >> i look at the charts of amazon.com the stock had fallen 24%, 25, maybe 28% from its record highs to the bottoms we've seen recently it's now gotten 18% back it got back just shy of half of what it lost does that tell you the sentiment is still there for these f.a.n.g. stocks?

>> i don't want to call amazon a dead cat by any stretch of the imagination. one of the first sayings i heard when i got started was watch for the dead cat bounce. but i do think it's important for investors to understand what's in their portfolios it's easy to get caught up in the algorithms and what they're doing and the momentum trade, and the liquid stocks are the things most traded by algos. that's not necessarily how you want your retirement to be invested you don't want to wake up one morning and find it's down 26%, then back 12%. i'm not saying they don't have a position in someone's portfolio, but too many people have been counting on ignoring everything and buying this thing called the market and letting it take care of itself. the market has really been dominated by seven names and when those falter, it could destroy years of growth.

now is a great time to look at it owning value names, owning the types of companies as i said on my last appearance that your grandparents might have gotten excited about may be a good way to start looking at your m portfolio to replans >> ken, thank you so much for joining us >> thank you. switching to a big story investors will be watching today, new fallout after president trump fired attorney general jeff sessions. let's get to tracie potts in washington with the latest >> this was a long time coming there was ptension and friction between the two for months over the russia investigation, now the question is without sessions, without rod rosenstein in charge of that investigation, will it continue after months of bad blood with his boss the first senator to support candidate trump -- >> this is a movement. >> reporter: -- has been asked

to turn in his resignation as attorney joengeneral. president trump made it clear he never thought sessions should step down from overseeing the russia investigation protesters at the white house last night making it clear they're not happy about this replacing sessions for now is his chief of staff, matthew whitaker who has been critical of robert mueller's investigation. >> if mueller needs to do something or seek additional authority or get permission to charge, mueller has to go through whitaker >> protecting mueller and his investigation is paramount >> reporter: president trump says he won't shut it down but threatened democrats who may reopen their own investigation after taking control of the house of representatives >> you can be sure of one thing, when we go down any of these paths we'll know what we're doing, we'll do it right >> if they do that, then all it is is just a war-like posture.

they can play that game. we can play it better. >> unknown what is mueller doing now. >> you can be sure he's not sitting on his hands >> reporter: whitaker can fire mueller, but only for cause, like misconduct. we have already seen organizers around the country are setting up protest demonstrations that are supposed to happen this afternoon to try to protect this russia investigation >> all right certainly watching the cabinet movement there to see if there's something else coming up tracie potts, thank you very much new also on the corporate front, tesla announcing its replacement for elon musk as chairman of the board at the company. frank holland has more on that story. >> robyn denholm is the new board chair this move comes more than a month after elon musk was forced to step down from the position as part of a settlement with the s.e.c denholm is the cfo of telstra.

denholm has been an independent board member of tesla since 2016 dell hol detesla had until nover 13th to name an independent board chairman that was related to the second settlement in a statement musk says den hol ho holm has made significant contributions while on the board to help make the company profitable the company is still searching for two more independent board members. a big change there and done before the deadline. >> a board oversight issue is something that tesla will be facing from investors in terms of criticism for months or years to come.

thank you very much. the streaming wars continue. comcast is developing a video streaming set-top box for broadband only customers it would allow users to stream with a voice active vaated remote. comcast has not decided how much it will charge for that device now to your top three tock stories today. qualcomm's earnings beat forecast but the revenue outlook for the first quaurrter is belo analyst estimates as it takes a hit from chip sales to apple the iphonemaker switched to intel for the iphone xr and x models. shares of tripadvisor are soaring. the travel site reported better than expected results in the latest quarter the company was helped by higher revenues in the non-hotel

business and lower marketing costs. roku shares are under pressure they reported a smaller quarterly loss, revenue did beat forecasts, but sales of video devices did fall short of estimates. the company is projecting a surprise loss in the holiday quarter. roku's ceo will join "squawk alley" later this morning on a cnbc excluetive. > oil is down for eight straight sessions. we'll find out what's weighing on the energy market. and later, we're headed to the front lines of the trade war. china ramping up exports ahead of a new round of tariffs. we'll have more after "worldwide exchgerern an" tus. ♪

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footing. we've got wti, crude and brent losing steam over the past couple of weeks. crude and brent catching a bit of steam today wti, 62.09 ice brent at 72.61 we have the senior analyst from nasdaq to talk all things oil. the down trend has been noticeable and pronounced as of late we're seeing a bit of a price action move to the upside today. is the trend for oil still lower? >> i think the market is grappling with some fundamental uncertainties. we don't know if oversupplied or undersupplied. some say we're in a red zone, we're not out of the woods yet at the same time we have two wrenches into the broader domestic landscape with trade wars and rising interest rates in the u.s., both of which are threatening to curtail demand.

we don't know if we're oversupplied or undersupplied because of the demand picture, which has not been something i've talked about the last few years. >> most experts i speak to on a daily basis, rough estimate, three quarters always talk about supply it seems like it's the glutton in the u.s., it's the production side of things who is pumping out more oil, can saudi fill the gap. is it fair to say the oil market is still driven primarily by the supply side of things? we know demand is always part of the picture. >> demand is always part of the picture. for the last couple of years demand has been moving higher underpinned by strong economic growth in china. now we're asking ourselves, we have falling auto sales in china, contracting gdp growth, falling currency and markets, are these red flags or is it a false alarm in a gradual cooling off period from what has

otherwise been strong growth >> can we talk about the u.s. shale side of things we saw movement in stocks specifically yesterday due to one specific proposition out in colorado that basically was going to cap the amount of drilling that could happen in colorado voters rejected it for that reason many domestic oil producers went higher. the u.s. shale market now, are we still that swing producer are we the most important producer out there for the world stage in terms of supply can we make up for anything else that could be a shortfall from saudi arabia, iran or elsewhere? >> u.s. shale growth is underpinned by many different independent producers that are answerable to their shareholders, unlike monolithic entities in saudi and russia so those three are the most important producers for the market all three are pumping at record high levels. all three of incentivized to continue doing

so russia is happy with oil prices in the 60s saudi is in a politically difficult situation now it would make it untenable for them to curtail supplies from the market they need to keep prices out of the trump tweet territory. so they need to keep oil flows pumping. shale has been phenomenally successful in terms of efficiencies despite a lower oil price. all three are continuing to pump at record levels that's been what's causing oil to move into a bear market >> where are you looking for oil to be? >> we think oil will continue to trade in a range, it's obviously been correlated with the volatility in the broader markets. i think that the tight range should maintain. we will probably balance around 70 as the iran sanctions kick in that should bring supply off the market and provide a bit of the

bid. also looking at nigeria. they have elections coming up. elections are always associated with loss of supply there. i think there's bias to the upside >> thank you so much >> thanks for having me. still ahead, milk's favorite cookie is getting caught in the cross hairs of a trade war with china. eunice yoon has more on that story. eunice >> thank you very much want a spicy chicken oreo in your milk or seaweed flavor? if not, these cookies are not made for you more on how mondelez is ilinto the chinese despite the trade war. cal: we saved our money and now, we get to spend it - our way.

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we are talking trade china reporting a surge in exports last month as shippers raced to beat a new round of tariffs set to kick in next year u.s. companies operating in china are also feeling the heat of a trade war eunice yoon has more on that story. it's all about cookies for you today. >> that's right. the trade war dominates the debate between the u.s. and china. to have a better understanding of what's at stake, you should try a spicy chicken oreo cookie. i'm at the research lab of the american food giant mondelez this is the maker of the oreo

cookie here at the lab they come up with all sorts of various flavors of the oreo to tailor to chinese tastes that means wasabe, seaweed or spicy chicken. like many american companies mondelez is not really in the business of moving stuff in and out of the country instead it localizes its operations earlier today i spoke with the china chief who told me that localization has helped the company to be able to generate a tremendous amount of business despite the trade war. this is what he said >> we are seeing as a multinational, also as a company that is rooted in china. we like openness as a multinational. we like free trade as much as anyone i would not say it has influenced a lot we have our sales people here, our factories here, our r & d center here. we make and bake for china >> he also said china generates

about $1 billion in sales a year for the company. it is becoming an increasingly important market for the company, and that's thanks to this little cookie so just to ask him exactly how this is made, he said the researchers came up with the idea because they were wondering what flavors are popular in china. it is savory as well as spicy. so he said because of all the localization that the company has, they were able to move this product from the idea to the market in just four months once it hit the market it sold out in nine hours. >> kit kates and oreos are the two snacks i guess that we most associate with foreign markets and different tastes any indication on what mondelez would bring next to the chinese

market >> he said the next big thing in china is health and well-being so they're experimenting with fiber, adding nuts to certain cookies. the company was talking about what would happen with the oreo cookie already we've seen a slimmed down version of the oreo cookie. it's a lot thinner it's called oreo thin. the only problem is that i kind of see these thin cookies and think i can eat twice as many, that probably defeats the purpose. >> i have that same problem with thin oreos in the united states as well. eunice yoon, thank you very much for that update. coming up next, feeding the chaos. walmart wants to change the way you shop this thanksgiving and what they're offering has everyone talking today those details are ahead when "worldwide exchange" returns

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rally on the dow hovering near the flat line after soaring more than 500 points in yesterday's session. big moves there. the fed front and center policymakers announce their latest rate decision today. and president trump firing attorney general jeff sessions will the d.c. drama start to weigh on wall street it's thursday, november 8, 2018. you're watching 1/4 white s"wore exchange" on cnbc.

good morning welcome to "worldwide exchange." i'm dominic chu. brian sullivan is out today. let's get you up to speed on what's happening out there >> here's what's leading cnbc.com right now the fed is in focus today. policymakers wrapping up a rare thursday meeting the latest decision on rates at 2:00 p.m. tesla announced its d its replacement for elon musk. robbin denholm will take over immediately. this comes a month after musk was forced to step down from that position as part of a settlement with the s.e.c. and comcast is developing a video streaming set-top box. this will allow customers to combine apps like netflix, youtube with a voice activated remote comcast has not decided how much it will charm for the new

device >>. we are following breaking news out of california police are reporting multiple fatalities after a gunman opened fire at a bar in thousand oaks that's about 40 miles west of los angeles. authorities do say the shooter is dead. hundreds of people were inside the bar at the time of the shooting the bar was hosting a college night at the time. we'll continue to follow the latest on this story and bring you more this is a developing and fluid situation, still a tragic occasion there in thousand oaks, california let's check the early market action stock futures are pointing to a slightly lower open. the dow down by 30 points if these movements and futures hold into the opening bell. the s&p off by 10 points the nasdaq off by 42 on the asian side of things, we saw a bit of positivity in those markets. the nikkei up by almost 2% the hang seng in hong kong up by a third of a percent the shanghai off by a quarter of

a percent. the kospi in south korea is up by two-thirds of a percent on the european side of things, we're seeing fractional losses the dax is off by a quarter of a percent. the ftse 100 is hovering near the flat line. let's tie all of this market action together. with me now is chad morgan lalar from washington crossing advisers a massive move higher in the markets yesterday exacerbating that sharp move higher off the lows in october. does that mean this is all clear to get into stocks again >> i would like to hope that's the case but i mroef thatbelievs short-lived at this point in time the federal reserve is meeting today. they will raise rates we believe in december and continue to lower their balance sheet. you also have global growth issues in china and the eurozone those economies are

decelerating that also is going to have a dampening effect >> does that mean now that the midterm elections are done and dusted we go back to just what we were looking at before, trade and tariffs, possibilities of the fed raising interest rates, what the pace will be. does that mean we're back to where we were before >> yes that's the case. so you have issues within the tariff side with china that we don't think will be resolved after they meet in another month. also you have additional issues with cost pressures going higher here in the united states and of course a lot of this embedded expectations for earnings growth as well as valuations is all baked with the global growth if you see global growth decelerate market multiples will come down for the s&p 500. >> jim cramer last night on "mad money" talked about the fed. talked about the midterms, we're moving on and the fed has spoken

again. he has talked about for weeks now that the economy may not be as strong as we think it is. do you believe that? if that's the case what does that mean for fed policy in 2019 let's assume the market has it right and it's 100% baked in that we'll get a 25 basis point rise come december >> we believe you will get two additional rate hikes in 2019. they'll continue to reduce the balance sheet. that also will have a damping effect on liquidity and the speculative financial system so jim is correct. he's looking at auto trends. he's looking at growth overseas. he's looking at the housing market you can see the price action within different sectors showing the market that the economy may be decelerating in 2019. you have this huge fiscal stimulus plan that came into play in 2018 we're seeing that within the u.s. economy remember, deficits went from 2% to 5%. massive fiscal stimulus.

that is going to eventually decelerate that growth will decelerate. the fed may then have to curtail their rate hikes >> that doesn't sound like the most opted mystic of scenarios or terrible at the same time so does that mean you're positioned how for your clients? >> you wanted to be in the steady companies, steady sectors. look at consumer staples, healthcare i know they both had some good runs over the last several months we believe that's where you want to reach you may, as interest rates start to rise, start picking through the utility sector you may find opportunity there when it comes to global macro investing, stay more overweight u.s. dollar. we would avoid the emerging markets. we believe the dollar will continue to strengthen that will soften demand. >> chad morganlander, thank you very much. >> thank you

let's find out more about what else will be talked about today. we have frank holland back with the top trending stories black friday is not so far away. >> this first one has me laughing walmart wants to change the way you shop by offering you free food on thanksgiving starting at 4:00 p.m. on thanksgiving day, the retail giant will host a black friday party featuring free coffee and cookies. it's the latest move as the retailer tries to rush to early up the black friday deals. i already have a lot of food at my house >> i don't understand -- i understand a lot of folks out there do shop on thanksgiving day. i never thought about it i'm too busy watching football of eating my own food. >> if walmart had tvs set up, maybe i might wander out. the girl scouts are suing the boy scouts over their

rebrand as the scouts. they say it will cause confusion among potential members. this is not the first time these two organizations met in court a century ago the boy scouts sued the girl scouts to stop using the term scout at all. >> this is a battle for survival at this point. you have an organization with the boy scouts, now the scouts of america, taking in females, young girls, so now do the girl scouts take in boys or do they just merge or what is the whole situation? >> i think it's confusing. i thought they were one organization clearly they're not. i think they might have a point. the girl scouts wanted to make it so the scouts now always have to put some type of gender qualifier in front of whatever they do. i think they might have a case it is pretty confusing >> it's something we're talking about for sure and now definitely something worth talking about definitely police in can says city had to remove a seven-foot long gator >> come on

>> the gator was being kept as a pet. it lived off of chicken nuggets, steak and deer meat. the gator was removed because owning an alligator in missouri is against the law i have several thoughts about this >> so is the alligator -- if you own an alligator, you probably own other animals. >> he had a rabbit i don't know if that was food. he also owned some big snakes. the rabbit was food, i think it doesn't seem like a great idea he said it was gentle as a public puppy. coming up, d.c. drama and the markets. will the washington shake up weigh on stocks? we'll debate it. first the countdown is on. we're just over a monthaway from -- we were just talking about thanksgiving christmas. the shopping is already under way. the big retail names you need to

have on your radar when "worldwide exchange" comes back. ♪ ♪ ♪ ♪

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ignition sequence starts. 10... 9... guidance is internal. 6... 5... 4... 3... 2... 1... ♪ there is a live shot of chicago right now. still dark over there. the countdown is on. just over a month until my favorite holiday of the year, it's christmas this is the most important time

of the year for the retailers as well the retail etf xrt, that ticker is up 3% this week alone it's now up 9% on the year that's a decent move higher. let's bring in stacey widlitz from sw retail advisers, also a cnbc contributor good to have you in studio >> so nice to be here at the 5:00 a.m. hour >> the biggest bump higher that we've seen after the market turmoil have been in retail stocks does that signal perhaps optimism along some investors and analysts that we could see a good, robust holiday shopping season >> i think we'll see a great holiday shopping season. some of it is dependent on the weather. the consumer is out in full force. that's been clear through the numbers that have come out there are winners and losers, but the companies that have been investing in business, investing in free shipping and logistics

like target and walmart are oning. then sears and jc are falling by the wayside. >> it wasn't that long ago that you, i, many in the investing community talked about the death of brick-and-mortar and amazon would control everything amazon is big but not as big as a few months ago >> retail is not dead. the brick-and-mortar space is not dead it's still over 90% of the business here. there's been a transition. two years ago amazon was the only game in town. if you wanted something last minute, efficient, free shipping, they were in now everybody else piled on. target is basically doing prime and walmart has a threshold. amazon now shot back and said you don't need to be a prime member >> i have a question, does that

have a backlash? if i'm a prime member, i'm paying 119 and i'm annoyed that my neighbor is getting it for free >> maybe you're staying there for prime video or music >> perhaps, but i think the main reason for signing up is the two-day shipping for free. over the holiday season, if you're giving it away for free, maybe the consumer is looking around saying maybe i'll shop at target >> i've noted for my own personal buying habits, i used to be an automatic go to amazon.com, click it, have it sent to me over the last couple of weeks i've shopped comparison wise more at walmart, target. does that speak to the fact that many of these omni channels have maybe not caught up but is

getting more competitive >> absolutely. not only are most of these retailers competing logistically and from an efficiency timeline, but now when you go into the stores they're clean they look good there's excitement they're in target. target is an in-stock toy section. it looks amazing they're capturing what toys "r" us is donating to the market stores look better and they're competing in terms of free shipping and getting it on top >> handicap for us, who are the two or three biggest winners and relative laggards. >> i think target is a clear winner i think kohl's also is driving a ton of traffic big beneficiary of sears and jcpenney the biggest losers are jcpenney. they'll have almost half of their stores in a mall where there's a dark anchor. so that's tough there. i think victoria's secret still has product challenges that are

in the stores that you can see if you go in there i think that's how the landscape plays out here stacey widlitz, thank you very much for the early wake up call. >> good to see you coming up next, a pop and a pair of drops. the three big stocks that need to be on your radar this morning. plus we are on washington watch. jeff sessions is out as attorney general, but could this shakeup weigh on your money? we'll dig in on that debate when "worldwide exchange" ruretns - le - 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.

we are continuing to follow breaking news out of california. police are about to hold a news conference after several people were shot at a bar in thousand oaks, california multiple fatalities have been reported the shooter is now dead. hundreds of people were in the

bar at the time of the shooting. we will follow the latest developments on this story a fluid situation. we'll wait for the police update on that shooting it is time to find out what's coming up on "squawk box. andrew ross sorkin has a preview of the show today. i have to imagine the market rally yesterday will be front and center >> that is the story of the day. it was the story yesterday we'll try to figure out whether it's a story that can keep on going. jason trenner it will be with us for two hours starting at 7:00 this morning we'll talk about the economy it may get political austan goolsbee also will be joining us and melissa lee is our guest host for all three hours >> i heard she would be sitting next to you. >> given the fan base, i wanted to make sure that's what everybody knew was happening >> i get to sit next to melissa

every day of my life, her desk is about five feet from mine >> you lucky duck. some other stocks to watch, wynn resorts third quarter earnings missing, they are warning of a slowdown in their business in macau. square's q3 profit beat, but fourth quarter profits are forecasted below expectations. and take-two interactive reporting strong second quarter results. the video gamemaker is raising its guidance for the year on the heels of a monster opening weekend for its newest title red dead redemption 2. shares are up 2.5% premarket we're following the latest developments out of washington, d.c.

president trump firing attorney general jeff sessions, but the question is will this matter for the market and for your money? let's bring in the senior fellow from the national taxpayers union. we've learned through history, since 1950, that when there is a republican in the white house, markets love a divided congress. is that the case this time around >> when you look at yesterday and the week coming up, when you look at the economy and market performance, keep in mind the market performs well a quarter after the midterm election it a would be a mistake to think of this as optimism. the fact that there are not long scale changes to policy is something that the market looks forward to a lot of business enthusiasm

over the last year has been a result of not just tax cuts and policy coming out of the building behind me but as a result of the trump deregulatory agenda which can continue unabated regardless of what makeup is of congress. we can expect that in the coming years as well. i think the market response is not a surprise i think we'll see, as you mentioned before, it has legs continuing into next year. >> are there places that we should be watching we spoke a lot over the last couple of weeks leading up to the election about the idea that certain industries are in focus because of the elections, financial services, healthcare, that's a big one what should investors be keying on given this new environment that's taking shape? >> this is a favorite past time of washington, d.c., what do the midterms auger for the next two years before we see another election cycle for me i'm focused on what happens in the coming weeks. there's a couple areas of volatility one is in december, we're looking at another fed hike.

what does that mean for market reaction i think you might see the president start to change some of his tone when it comes to the fed. we have seen president trump be very critical of the fed and the expectation that me may raise rates. with democrats coming in now, this could be an opportunity for the president to put pressure on the opposite party saying if the economic conditions are tightening as a result of central bank movement the party that controls the other chamber needs to articulate an economic vision democrats have been cavalier about wanting to repoeal the ta cuts and go to the throat of the trump economic agenda. they may need to put some votes on the floor if that's the case. the fed rate hike could create conditions where the president makes those demands. also in december, federal government funding runs out in the first week that will offer opportunity. sectors that are attached to government spending may see some movement there again, in 2010 the last time

that nancy pelosi was speaker, the government funding fight was one she lost and had to punt into the new congress. so this has been an area of leverage for republicans so federal government funding is a fight that will factor heavily into what happens in the coming year and lastly trade. we're up against an actual deadline on trade. january 1st, the last tariffs will go into effect to 25% that will create downward pressure that both democrats and republicans now will have to respond to now that democrats have control of one chamber of commerce it will be interesting to see next year when the new nafta agreement is on the board, how those discussions about trade affect the tenor and temperament of democrats and republicans as we head into the new year. >> many things to watch. you just touched the tip of the iceberg. >> thanks.

>> let's check the markets now after big day yesterday, we are seeing -- we'll call it stability for this time being. the dow implied to open down by 29 points. the s&p off by 10 points the nasdaq off by 37 remember yesterday's gains were the biggest one-day reaction in the stock market to a midterm election going all the way back to 1982. that's something to keep in mind we'll see if this market can have legs here. don't forget, it is all about the fed today. policymakers wrapping up a rare thursday meeting this afternoon after the elections on tuesday we'll get their decision later on on rates at 2:00 p.m. eastern time something we'll be watching. i'll be with you on "power lunch" to help you break down the action for that particular decision that does it for "worldwide exchange." futures pointing to slight losses we'll keep an eye on those we'll see you a couple minutes on "squawk box." as you can see, we'll see if

these modest losses hold into the opening bell ♪ the new capital one savor card. earn 4% cash back on dining and 4% on entertainment. now when you go out, you cash in. what's in your wallet?

good morning stocks are giving back some of yesterday's gains after the big post-election rally of more than 500 points in the dow. we'll tell you how today's fed speak could move the markets. shakeup in washington. attorney general jeff sessions is out and tesla has chosen elon musk's replacement to chair the board of directors we'll tell you who she is. it's thursday, november 8, 2018. "squawk box" begins right now. live from new york where

business never sleeps, this is "squawk box. good morning welcome back to "squawk box. i'm andrew ross sorkin with joe kernen and melissa lee is hanging out for all three hours this morning becky is off today look at u.s. equity futures after what was a heck of a day yesterday in the green looks like right now dow would open down off about 40 points. nasdaq looking to open off by 41 points s&p 500 looking to open off by 10 or 11 points right now. let's see what happened overnight in asia after what was an unusually great day for the markets. the nikkei up close to 2%. hang seng up a little bit. shanghai off marginally. let's look at europe overnight you're looking at a bit -- can i call it a mixed picture? most of that is in the red with the exception of the