it's 5:00 a.m. in boston, 10:00 a.m. in london wild swings in the market becoming more common down a few hundred then back up. we'll dig into why we're suddenly so violatile. why apple's fate means so much to the broader markets. the opec oil pump bumped crude oil erasing all the opec meeting gains. good news on a tuesday u.s. and china kicking off a new round of deal discussions. and the brexit battle royale what is next after today's planned vote got the axe

it's tuesday, december 11th 2018, "worldwide exchange" begins right now good morning welcome from wherever in the world you may be watching. i'm brian sullivan thank you for joining us on cnbc here's what you need to know about the markets today after another wild session yesterday stock futures little changed, maybe slightly higher now. the dow is down more than 500 points at one point on monday. only to bounce back. tech stocks led by apple reversed course. of course we also had last week's 700-point swing day is that the sign of a healthy market we'll dig in on that more in a moment and the yield spread between the two-year and the ten-year has been narrowing the ten-year yield right now at

2.88 and the two-year at 2.74. we are seeing some nice gains across europe. the german market up a percent the french market up a percent the uk market up as well brexit bedarn darned we are se some gains a mixed overnight session in asia japan was. china was down good news on the trade front the u.s. and xhchina are kickin off a new round of trade talks secretary mnuchin and robert lighthizer holding a phone call with the chinese premiere last night. they talked about the buying of agricultural products and changes to china's economic policies this comes after president trump and president xi agreed to a

90-day tariff cease-fire earlier this month let's get the reaction from china. eunice yoon is live from bay sing i don't want to use the stock market to tell the story, but we are cnbc based on the chinese market reaction, it doesn't look like there was that much positive reaction or sentiment from this phone call >> it was helping a bit. there was a signal sent by that phone call that it looks as though the negotiators still want to have the trade talks move forward even foe there was this arrest of huawei's cfo. so we heard the chinese reaffirming that the trade talks are on the commerce ministry posted a brief statement on its website confirming that the prearranged phone call did happen, and that the three officials outlined ways to push forward the timetable and road map for the next stage of economic and trade

consultations. the phone call did send a signal, maybe not entirely to the stock market, but to many people here that the negotiators do want these conversations to continue despite the fact that the chinese had been outraged by the arrest of huawei's cfo that arrest has been seen as a political decision even though officially the chinese government has not linked these two events brian? >> eunice yoon, thank you very much let's get back to the markets and your money the number of days where we are up or down a few hundred points seems to only be cranking up yesterday down 500, only to bounce back. last week, same story. let's bring in ken cayman, a man probably on no sleep, given these markets. what do your clients say they watch cnbc, we're down 600 at 11:00 a.m., at 3:00 p.m.

we're flat what do you tell them? >> you have to ignore the noise. bigger numbers mean bigger swings, 1% and 2% means hundreds of poin of points. people have to know what their portfolios are about otherwise they won't sleep at night. they have to understand this volatility is more a normal part of historical markets, not what we've seen >> i get your point. i want to go back to the swings. yes, we know math. the numbers get bigger because the percentages stay the same. however down 600 and then coming back 600 down 700 last week, back 700 is that the sign of a healthy market >> it's the sign of a changed market there's estimates that it's only about 40% of the market now that are actually stock pickers people who are doing homework

and trying to do fundamental analysis 60% of the market volatility or trading is coming from automated programs and professional traders just trying to gain the day's momentum it's not your grandfather's market, it's not the way to run a market we grew up with but it's the market we have and with technology coming in it's likely the market we have to live with. >> at an amusement park, some people like the merry-go-round, other people like the extreme roller coasters. the stock market has become that way. how do we convince them that they have to ride the swings out? >> let me offer a different analogy, picture going down the highway in the right lane going 60 miles per hour, in the left lane you have ferrari race cars going back and forth you have to stay in your lane

and not let that distract you. your goal is to make a million dollars over a lifetime. their goal is to make a million dollars by 3:00 day. >> the right lane people, i like to flash my lights at them you advise your kleclients to k six months in cash >> yeah. you need to keep at least a six-month reserve in cash and sometimes a year in cash if you're expecting a big outlay. you don't want to be selling stocks into a manic movement in the market down because once you lock in that loss, it's not coming back. a good part of good cash management and good future planning is to keep cash available and don't worry that that is not getting a return >> i know we have to go. you wrote you have to buy when everyone is crying buying when they're crying >> when i started in the business, a guy told me if you

want to be successful, buying when they're crying, selling when they're yelling >> we're crying right now, what looks good >> i like broadening out the portfolio to more value names. some infrastructure and industrials, materials probably the farmer, but the non-high-tech farmer i think we're in the zone where we have to broaden out the portfolio. if you have been relying on momentum to carry the day for you, because you didn't know what was in your portfolio, you didn't understand why your stocks were up, you were thrilled every day they were up, that same ignorance that allowed you to be thrilled, you have to keep that in your mind to not get freaked out. profits are main from down markets, not upmarkets >> well said stay in that right lane ortd middlmi o the middle lane.

ken, thank you let's talk more about some individual stocks you need to know about frank holland has those. starting off with stitch pick shares dropping sharply this morning. down about 14% the personal shopping company posting better than expected earnings and revenues after the close. the stock initially jumped on that news, then shares plunged on weaker than forecast user growth down more than 14% ascena retail shares popping after the close, up more than 12%. but shares dropping sharply during yesterday's trading session. the retailer exceeding wall street's revenue estimates this is a smaller company with a market cap of around 500 million. to casey's general shares. they are down more than 6% the latest earnings topping estimates but fuel sales were weaker than expected brian, back over to you. >> we'll see you in a few

minutes. on deck, a big brexit breakdown. the big vote that was planned for today scrapped after the break, we'll tell you what will happen now. and forgthe head of the por charleston is here with us live to talk trade. [leaf blower] you should be mad at leaf blowers. [beep] you should be mad your neighbor always wants to hang out.

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welcome back your top story today was supposed to an massive vote in the uk parliament over brexit, but late yesterday that vote canceled now theresa may goes back to the drawing board and back to the eu to try to work out a new deal. wilfred frost joins us from london with where things stand wilfred. >> parliament has rarely been as united as it was yesterday against the prime minister left and right, leave and remain there was widespread disbelief at the prime minister's decision to deny a vote on the brexit deal even though she said the deal was the best that could be achieved >> i've listened carefully to what has been said in this chamber and out of it. to what has been said in this chamber and out of it by members from all sides >> she now heads to europe to

try to improve that deal, something that will be incredibly hard, particularly after comments like this from jean-claude junker saying there is no room for renegotiation he went on to offer only clarifications, unlikely to be enough to placate prime minister may's opponents. but she has bought herself a few weeks of breathing room. she has not had to face and lose a vote on her brexit deal, she has not seen a vote of no confidence triggered against her. sterling sill suffered heavily yesterday. more because of uncertainty over her future than brexit itself, because while the chances of a middle ground brexit deal have fallen dramatically, they have been offset not just by the rising chance of a no-deal disorderly brexit, but also by the rising chance of a second referendum and with it the possibility of a remain outcome. so we stand in sort of a brexit

purgatory with big moves in the market possible in either direction depending on how this situation gets resolved. >> i guess we'll call it the brexit breakdown or whatever yesterday you talked with an mp about some of the pain and the weaker currency. i believe the gentleman was basically saying we'll have to deal with pain in the short-term longer term we'll be okay, but in the near-term it could be tough. >> absolutely right. that was steve baker who i was speaking to yesterday, brian on the topic of the british pound, i caught up with simon derek from bny melon earlier and asked all other things equal, on the 30th of march next year, if there was a no-deal brexit where would sterling go? he said 1.10 or lower. we're around 1.27 today. if there was a remain outcome it

would jump to 1.45 or higher that speaks to those binary movements that are possible. various estimates alter, but one thing is clear that there willing a big rally if people remain and a fall on a no-deal brexit here are the latest odds implied by the betting markets on the possibility of a second referendum no to a second referendum, 55% yes, 45% to get to remain you also then have to see the vote go towards that, but certainly the chances of a second referendum have risen. >> does a weaker currency embolden the brexiteers because this makes their exports, things made in england and the uk more competitive? >> no. quite the popposite in the short-term when you see days of market weakness and volatility it slightly increases the chances that mps minds might be altered into deciding to vote with the prime minister when she brings

her deal back. but i'd say, yes, we saw 2% fall to a 20 month low at the lows of the day yesterday for the pound. but it didn't seem to be enough, that sort of volatility to shake mps into action to be willing to back the prime minister. whether or not they will back her will almost certainly come down to if she can change the legal text of the withdrawal agreement, particularly on the issue of the irish back stostop at the moment eu leaders say they will only give her verbal assurances, not written changes to the text >> let's bring in peter spiegel from "the financial times. this is a complicated thing, especially here in the united states not only with the dates, but with the details let's simplify it here it goes to a conversation we are having in america about the border wall with mexico. how big of an issue is this irish border wall with northern

ireland? >> it is the issue i wouldn't call it a wall necessarily, but inside the eu, the thing is you can walk back and forth, you don't notice a difference between northern ireland and ireland. so you ship services and goods over that border with no problem whatsoever suddenly -- this has happened for 40 years now suddenly that commercial activity will stop if there's a hard border. they'll have to have custom checks like at the u.s./mexico border you have nafta or the successor to nafta, so there's a trading relationship, but you still have that hard border where trucks are stopped. if you have to do that in northern rirld, nireland, not os

that effect commerce, for years there was terrorism violence because of the troubles. this all feeds into the same thing. it's existential for the uk. the eu says if you want to avoid that, put northern ireland into the eu single market suddenly you're breaking off the uk into another entity like saying alaska should be part of another customs regime you can't do it that way this is the issue. the solution that has been come up with is if everything goes wrong, all of the uk will join the eu customs union that means there will be no more borders in ireland the problem is if you're a brexit supporter and you say, oh, that's the backstop, that's the solution, that's the insurance policy, you have not left the eu. you are still subject to all the eu rules, trading policies so that's a bad idea that's why the tory party is rebelling. they do not accept may's deal because ultimately if everything else fails they'll be stuck in

the eu >> she's trying to split the middle s that fair to say? exa >> exactly and she's in a horrible position. there is no good answer here if you're a british business who does business in europe, there's no good way out of this. there's no way of making that trading relationship better than it is now. it only makes it worse so she's trying to make it the least worst possible trading issue for europe it's angering euro skeptics, the more you move in that direction, the more you anger this direction. she will go to europe today. i don't think she can get anything out of it people are scratching their heads on why she delayed this. there is anger is she trying to delay this until march where they are

forced to vote for this thing. >> let's not forget, we were listening to video, watching the prime minister, she's in the house of commons where their hissing, hooting and hollering, goes back to the 1560s the way it feels she didn't create this david cameron brought forward the referendum may inherited much of this >> she did but remember, she inherited it and she quickly set sof rme red lines. she said day one, you know, no member of the single market. no member of the customs market. these are things that were up in the air that david cameron himself didn't agree to. so she set red lines day one that she cannot now meet yes, she's been beat up, we all feel bad for her, but this is a disaster of her own making cameron called the referendum, he made that mistake, but from day one she set red lines that were impossible to meet. the eu told her that, she

refused to listen unto that. >> about three weeks ago i had a fake palm tree next to my desk that went missing. it's gone. i don't know now you have a fake palm tree behind you is that my tall m tree > did somebody steal my tree and ship it to england >> i can neither confirm nor deny >> that looks like my fake palm tree does it have christmas lights in it >> i have no comment on the scandal. >> i'm coming for the ft peter spiegel of the ft with my palm tree, thank you very much coming up, dc drama. how the mueller investigation continues to ramp up and what it means to you later on, with so much optimism around christmas spending, why are so many retail stocks in the dumps? we'll talk more about it with

stacey widlitz coming up i'm ken jacobus and i switched to the spark cash card from capital one. i earn unlimited 2% cash back on everything i buy. and last year, i earned $36,000 in cash back. which i used to offer health insurance to my employees. what's in your wallet?

welcome back look at that opec more like nopec crude oil up about a half per sen percent, 51.26 the gains have been cut out. oil back to pre-meeting levels

with wti and with brent. with that it's cohave come downf if that etfcent this quarter, id be the worst quarter in years. individually it's been ugly out there. valero down 36%. again, this quarter. vlo is now headed for its worst quarter since 1998 something to watch things are heating up in our nation's capital president trump searching for a new chief of staff all while the mueller investigation gains steam. tracie potts joining us now from d.c. with more >> so not only the mueller investigation which the president's former attorney, michael cohen is cooperating with, but also these possible campaign finance violations

where he scaquarely pointed the finger at mr. trump saying he directed hush money payments to women that may have violateded campaign finance rules the new chief of staff will have to deal with that and ushering him through the 2020 election. the chief of staff, john kelly, leaving at the end of the year we have a short list of possible replacements they include conservative congressman mark meadows here on capitol hill along with mick mulvaney and matt whitaker, the acting attorney general. all of that could be on the back burner as the president deals with the budget today. the two top democrats headed to the white house to try and work out some sort of deal on border funding. will they or will they not pay for that wall. brian? >> tracie potts in d.c., thank you. up next, trading all the turbulence some real world ideas on how to

make money from thescre azy markets, jurrien timmer joining us when we come back ♪ ♪ (buzzing) gather new insights, leave your data protected on-site, and put it all to work with ai. the ibm cloud. the cloud for smarter business.

volatility the name of the game we have some proactive advice on how to profit from the wild swings big tech heading to the hill what will google's ceo tell congress and what will congress demand of google and changes in the skies why delta is telling passengers

to leave their animals at home "worldwide exchange" rolls on right now. ♪ a little neil young at 5:30 on a tuesday why not. thank you for being with us on cnbc let's get all you need to know in about 60 seconds. we call it the executive recap frank holland has that >> here's what's leading cnbc right now. theresa may will meet with german chancellor angela merkel today to discuss concerns expressed by british lawmakers over may's brexit deal this meeting comes after may abruptly delayed a crucial brexit vote that was scheduled for today. and wpp is planning to spend 3$382 million to return itself o growth the ad agency says it plans to reduce the number of agencies it runs and will hire more employees in new york. wpp also telling investors it

will maintain and prioritize its dividend over buybacks and deals. a bail hearing to huawei's cfo continues today. the executive spent the weekend in a canadian jail she was arrested on december 1st and is accused of helping huawei dodge u.s. sanctions on iran. and google's ceo will take the hot seat this morning testifying about privacy, transparency and content bias. the company's handling of user data and its development of a search engine in china are likely to be topics of this testimony. back over to you >> thank you very much now let check your top headlines in the world and national news phillip mena has those the environmental protection agency is expected to announce plans to roll back obama-era clean water guidelines which would weaken protections of u.s. waterways and wetlands from

pollutants golf course owners are set to benefit from these changes the epa has been working to lift the regulations since mr. trump took office. firefighters battled a huge blaze at a baptist church in dallas last night. witnesses captured video of the flames the church was likely empty at the time police are investigating the cause. and post malone fans, you can get those crocs designed by the artist his first collaboration sold out in less than a day crocs announced the second design will drop today at 2:00 p.m. eastern they're yellow, they have that barbed wire design and custom charms, too. only available in limited quantities, and they retail for $60, but they have already been listed on ebay for 900 bucks just in time for the holidays. >> yeah, no. you asking for those >> no.

i will get the post malone face tattoo and on the crocs the same day i'm done with a job. >> if he can get you the g5 -- >> maybe i'm in. >> thank you very much here's how your money and investments look right now stock futures after yesterday's wild ride are up nicely. dow futures up 120 points. but in this market recently what does that even mean? down 500 yesterday, then back up last week, down 700, then back up let's try to make sense of all of this and get real-world advice jurrien timmer joins us. first off, welcome secondly, why are we suddenly seeing these 500, 600, 700-point swings intraday? what's changed is this a broken market? >> i don't think so. this is a market that does what it is always doing it's finding the fair value basically. you know, when things are calm,

earnings growth is stable or accelerating, we know where the fed is going, the economy is stable, investors are generally willing to pay a higher pe for that market. pe is really what this all comes down to. we could be obsessed where the dow is trading, but it's what we're willing to pay for each dollar of earnings that is the ultimate thing we're trying to solve for. 2018 has been a year of transition going from 25% earnings growth to 7% next year. until the last few weeks we have not known where the fed was going to go. whether it would overshoot and commit a policy error to the upside we have more uncertainty on trade, on the yield curve. that's an environment where people are willing to pay less for a dollar of earnings that's why the pe rerated so much since january pe is down 23% so it's just a market trying to find its way liquidity has become more scarce in recent weeks.

there's more air pockets in terms of when someone is selling. there are fewer people stepping in the way to buy it i think that's a reason why you're seeing exaggerated moves here but ultimately the market is trying to find its new equilibrium. >> you're a mart gusmart guy, yu talked about the liquidity pockets and lack of buyers every day we struggle on this network to figure out why things are happening. because of trade wars. there's got to be a reason ultimately the reason for anything is that more people want to buy or sell. where are the buyers what happened to them? >> i think the buyers will emerge, but they are waiting for the selling to be done it sounds contrived, but i think there is some element of the markets being a little contrived here the market looks at twos to

tens, i look at the tien-year, but on a down day people will mention the two and five-year curve as to why the market is going down i'm like really? whoand five-year curve. so i think people, you know, people need to get some comfort that it's safe to get back into the ocean. was we're seeing is as the s&p keeps probing the 2600 level to the down side, that equates to a 15.0 forward multiple. i think at some point if the market washes out those lows, which i'm not necessarily predicting, you will get a 14 pe or a 14 handle on the pe in an environment where you have basically probably 7% earnings growth next year a fed that may go once or twice more an then kind of be on hold.

an economy nowhere near recision that's a good value proposition. as the market starts to embrace that, as we go into next year, i think the market will look bette better >> jurrien timmer, have a great rest of your week. see you soon >> thank you. breaking stock news for you on two big names you know and you may own. one is a dow component, one used to be a dow component. first one, at&t. at&t upgraded from neutral to buy at citigroup the target remains 34, 4 bucks of upside. the analyst says that at&t will benefit from the promotional benefit at wireless. an at&t upgrade. stock up 1.3%. now for a call on a current dow component, pfizer. jpmorgan chase cutting fiz tore

ne pfizer to neutral from overweight the valuation is no longer attractive their target remains 46. now to the news out of the c suite. if a company does not innovate it could die that was the topic of last night's cnbc net-net event this is what johnson & johnson's chairman told a room of business leaders. >> one scheme we have honed over time is partner with innovators. that's one of the most important ways we remain innovating is partnering with others that have important innovations and that can make an impact >> for more go to cnbc.com/net-net don't do it now if you're

driving. frank holland is back with trending stories what's trending? >> we have some good up withes today. >> thank goodness you don't have bad ones today that's a win >> delta air lines announcing major changes to rules about pets on flights. emotional support animals will not be allowed on flights longer than eight hours it is barring animals younger than four months old from all flights. it would be easy to say delta doesn't like puppies and doesn' want you to be happy that's what emotional support animals are. they say the ins den incidents n animals has gone up. >> on my flight back from europe the other day. there was a family with a dog. all i kept thinking about is

nature is going to come calling soon where and how? >> depends how big it is sometimes you can use those -- >> it was a little doggy with a little d oshgoo-doo clean up on the aisle. a runner at a cross country race experienced the highs and lows of athletic achievement he was cruising to an easy victory, flags in hand when he was tripped up over the course he still finished first. i want to stop this. this may look like he's winning, he wanted to grab the flags. but if you read the publish reports, he was trying to do a slide. >> he gets on his knees. it's wet >> in sailing they would call that a pitch pole, if you're in

a cat boat. >> it's time for the cdc and the fda to team up in a losing battle trying to get americans to stop eating raw cookie dough. the agencies warn it's not just salmonella that you have to worry about. also uncooked flour can carry e. coli so wait until the dough hits the oven before you eat it >> a spoonful, i'm sure the cdc won't have a beef with >> it's like potato chips, you can't stop at just one now to the sports world, seahawks hosting the vinging vi. the seahawks got hot in the fourth quarter and they won the

game 21-7, ensuring that i won my week in the pick 'em pool. on deck, load 'em up the head of the port of charleston is here with the real world impact of the trade turmoil. what's happening at the ports? we'll find out we're a few weeks away from christmas. people are optimistic. why do so many retail stocks look like somebody is putting coal in their stocking stacey widlitz is here

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there's a lot of serious news out there brexit, trade problems, china fighting, the mueller investigation. let's look at christmas tree and be happy that's a giant christmas tree. rockefeller center, isn't that nice christmas is 14 days away. we are just a few weeks from christmas. what retail name should you be shopping for this holiday? joining us is stacey widlitz we're happy to see you on set. >> it's nice to be here early. i'm using the jet lag. >> we're all on the european schedule on this show. we know nobody is ratcheting down estimates on holiday spending yet on my screens right here, look -- oh >> that's going to be a blooper

real >> we just had a flood >> any way, the average retail stock is down 17% in this quarter. how come -- and a mop. >> clean up on aisle 7 expectations going into the fourth quarter are high. everybody is comping the consumer is in a great place. i will help you mop. but the problem is the expectations so lululemon comped up 18% the stock traded off ulta comped up 18%, the stock traded up. we know the consumer is strong the darling of retail, the question in 2019 what is next. is this as good as it gets >> move your phone, by the way >> gosh. somehow there was 16 gallons of water in this mug that is now making its way around the "worldwide exchange" desk. okay two-ways to look at retail

stocks number one, they're doing what you said number two they're telling us a scary story about what's to come the market is looking out and going, oh, we're in trouble. economy, recession, sell them now. >> i don't know if we're looking at recession, but we are looking into 2019 saying the consumer is as good as it gets in 2018 we had a really good set up. what about next year do we get tariffs? if we get tariffs, then we have to go for price increases. which the consumer may push back on freight is up. now you will face tough comparisons. we know retail is not dead, but there's still more pain to come. it's very difficult -- thank you for my refill. i'll keep it far away from you and, you know, so you look into next year an say, you know, there's no way we'll do that >> tiffany right now, i won't

touch the computer again tiffany down 34% this quarter is tiffany's business 34% worse now than two and a half months ago >> absolutely not. but there are fears that the chinese luxury consumer are slowing down tourism slowed down in new york, in europe. there's a fear factor that is the customer drawing up and going away that's clearly not the case. again, there's a fear out there. >> speaking of that, but sometimes you get unlucky with dates. brian cornell of target was on cnbc a month ago, six weeks ago, he said on "squawk box" it was the greatest consumer environment that he had ever experienced in 30 years of retail target stock is down 22% this quarter. are we seeing this massive disconnect between what the consumer is doing and what the

stock market is doing? if we are, one of those will be a wrong view >> that's part of the problem. everybody is out there saying how great everything is. you're teeing everybody up for expectations that you can't meet they put up a 5.5, consensus was 5.6. so the stock sold off huge you have to settle down, be conservative going into the earnings reports there's no question that the consumer is still spending but we're going to see cost pressures, as you and i talked about before, because you have top line growth doesn't mean you have bottom line growth. >> you expect a rebound? >> some of them. lululemon, ulta. they were more promotional than the street would have liked. you still have the kylie effect, and you have a company that has

tempered expectations. so we're going into 2019 in a realistic manner >> i don't know when i'll see you again. i want to give you -- hold on. let's zoom in on this. we got these nice new "worldwide exchange" mugs it is now empty due to my error. >> you just wanted to draw attention to it. >> i want to present you with this mug, merry christmas. >> i don't know that i'm coming back to visit you. >> remember when i said i wouldn't spill water on you? that was a lie coming up after the break, the head of the port of south carolina, the port of charleston is here on set we'll find out how many goods and services are flowing through america's ports. that's next.

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♪ ♪ synchrony. what are you working forward to? trade and the macro economy is no doubt top of this list of investor concerns this year. the u.s. trade turmoil dominating the headlines and your markets how much of the trade tussle

weighed on shipping in the states joining us now is jim newsom, ceo of the south carolina ports authority. a man who gave us free access and reign to the port of charleston months ago. welcome to our home. >> thanks, brian >> i love having you on. we talked to stacy about the flow of goods. you see it firsthand has the flow of trade, goods, cars through the port of charleston changed that much since we visited you a couple months ago >> we're seeing record volumes because we're a retails. >> reporter: advancing shipments to get ahead of the tariffs. we think post chinese new year that will slow down. normally you would be in a slack season right now >> if we took a poler roaroid of what's happening now, no sign

yet but your contention that either they're pulling forward, channel stuffing, and that you do believe they will slow what kind of things are you seeing that indicate a slowdown >> we're hearing asia shipped as much as they could ahead of time so typically this would be a slow season right now. we think we'll see that slow season in february to april timeframe. we don't know what that means because we never dealt with this before >> if you have never dealt with this before, how are you planning for the unknown >> so, i think if you look at our investments, we build long cycle assets you can't time anything based on that so we're curious about what it will be. i think it will have a short-term impact, and we have to hope the trade uncertainty is removed in time. >> the reason we visited you guys over savannah, you're the port of export for all the b bmw x5s made in the united states they are made in greenville. auto is a big part of the story what has the trade flow been

like on the auto side? >> people have to remember bmw exports 70% of what they make. it's a global manufacturing story. that will continue long-term one has to watch auto mow vif. you can make expensive cars anywhere in the world cheaply. the major impact will be from automotive impact. they have been busy. they just launched a new x5. we'll see if trade slows down in cars, the car industry is slowing. we don't know. >> no sign right now of a slowdown record volumes last week >> record container volumes. car shipments were slower because they had a model year changeover they have a new x5 which is beautiful. long-term automotive can be manufactured in a lot of places. >> record volumes for the port of south carolina last week. jim, a pleasure and a big win for your vols over gonzaga

>> yes >> appreciate that thanks for watching "worldwide exchange." "squawk box" is picking up the story. i'll see you at "fast money" at 5:00 p.m. tonight. or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally discovered in jellyfish, prevagen has been shown in clinical trials to improve short-term memory. prevagen. healthier brain. better life.

a triple digit for the dow after the index erased a 500-point loss we'll show you the morning's biggest movers what happened to the transports and fedex yesterday, yikes bargaining for a better brexit theresa may hoping to negotiate a better divorce deal. we'll get a live report from london and google's ceo is headed to capitol hill for a grilling today. we'll tell you what to expect on privacy, search bias and

regulation it's tuesday, december 11, 2018. "squawk box" begins right now. ♪ live from new york where business never sleeps, this is "squawk box. good morning, everybody. welcome to "squawk box" on cnbc. we're live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. our guest host this morning is mike santoli good to see you. good to have you here as we talk about what happened yesterday, maybe set things up for this morning. stocks yesterday erased a 500-point drop in the dow to close 34 points higher it was something to watch throughout the course of the session. i asked what happened. what is the answer >> i don't think we missed any key headline, any one specific thing. i think you have to -- in these high