good morning. futures pointing to a slightly higher open. but in this volatile market you can't afford to turn away for just a second. >> investor optimism about developments between the u.s. and china giving stocks a shot in the arm we'll take you live to beijing for the latest plus may sees another day. the uk prime minister surviving a no-confidence vote, but the brexit battle is far from over it's thursday december 13, "worldwide exchange" begins right now.

good morning welcome to "worldwide exchange." i'm dominic chu. brian sullivan is off today. let's look at how markets are setting up this morning. futures pointing to a slightly higher open. just about 31 points for the dow jones industrial average on the s&p, 2 to 3 points. the nasdaq up by 21. on the treasury side of things, let's look at ten-year treasury note yields, a bit of action there to the down side 2.89% the last trade there 2.76% for the two-year on the currencies part of this particular day, we do see euros gaining strength against the u.s. dollar. dollar/yen 113.4 and the pound at 1.26. the oil global supply

tightening more quickly next year due to output deals with russia and opec and everybody else, that's from the iea. crude prices just slightly higher $51.06 the trade there let's go worldwide in asia, it was generally positive overnight the nikkei up by a percent. the hang seng was up by over a percent. the shanghai over a percent as well on the european trade, we are mixed but generally positive off the best levels of the session. the dax in germany down by a quarter percent. the cac in france, a similar percentage drop. the ftse in the uk down by 0.1%. the global markets continuing to follow every headline on trade eunice yoon is live in beijing with the latest on the u.s./china side of that deal eunice >> thank you very much trade is being complicated by detentions in canada as well as here in china. the foreign ministry confirmed that two canadian nationals are

being detained for engaging in activities which they describe as endangering china's national security one is a former diplomat the other is a businessman who has arranged trips to north korea, including one for dennis rodman when asked if their situation is related to the detention of huawei's cfo in vanvancouver, t minister said china is reacting according to the law china is continuing trade talks with the u.s the commerce ministry says beijing welcomes u.s. trade representatives to visit, and there's been talk that china is considering an alternative to the made in china 2025 program sources here have been telling me that some of the authorities here have recognized that the industrial policy has been drawing too much criticism overseas now there's a push to come up with some sort of replacement, possibly as early as january

so the new revised plan would de-emphasize china's goal to dominate manufacturing, drop hard targets for chinese companies for market share and include greater market access for foreign firms. it's unclear if these revisions would suggest or drop some more controversial aspects in terms of what china does in trade practices, including subsidizing certain sectors. dom? >> eunice yoon, thank you for that update. let's bring in craig johnson from piper jaffray as we talk about the cross currents happening now we see it playing out with the volatile trade in stocks lower than the record highs. what's the price action telling you about what this does for the overall bull trend we've seen since the depths of the financial crisis back in 2009?

>> great question. we think the secular bull market is still happening, but we will be corralling this at 2500 on the low end. for an objective we're looking at 2725. as we paint by the numbers we are getting substantially more 26-week new lows on the market than new highs we're continuing to see there's a low percentage of stocks still above the 200-day moving average. when we get these low numbers we usually get to a final flush from our perspective we think we'll get a final flush in the market that will take the s&p down to 2500, 2580 at that time we'll be washed out. reconfirming support and setting ourselves up for an intraday move right now it's more to the down side i've been saying to people we want to be selling the rips and buying the quality on the dips right now we have a bit more

down side. >> let's talk about that flush obviously it's hard to say a specific time that kind of flush will happen. this move with support downside so far, is it foreseeable in the next two, three weeks that this is a seasonably strong time for the markets. would we expect that type of a flush in the final two, three weeks of the trading year? >> i think right now we're getting a lot of unwinding of a lot of books it was a challenging october and november and december. when we have seen, looking back through history, that when we get off to a weak start in december, typically on average you're down almost 3% in december when we have these weak starts to the month. from our perspective we think it's a couple weeks, maybe a month away before you reach that tradable low the big question, dom, what will be the new leadership on this particular bounce? what i fine interesting now is

not only has utilities and the traditional staples been really seeing 26-week highs, we're seeing names in healthcare put up strong numbers. that's an area investors will want to focus on >> you watch the charts every single day utilities, yes consumer staples, they trade at premium valuations to the market healthcare is one of those attractive parts the damage has been done also in energy energy you can tell us about what you think about that energy sector or oil stocks in general? are they nearing levels where perhaps some value investors could consider them a buy as well >> the answer to that is yes when i go through and look at our relative strength work, i'm starting to see the energy sector just going sideways it's not making new lows like before i would also note when you look at the commodity compared to the energy names themselves, not

only did we not see the energy names participate when oil is rising, they're not falling to the same degree as oil prices have declined. it feels like a lot of bad news is in. when you look at stocks in the energy space, outside of the services companies, but also the enp companies, they're consolidating sideways with chevron and exxon, they're also consolidating sideways. that suggests to us a lot of bad news may be priced into those names. >> healthcare and energy attractive parts of the market thank you so much for joining us >> thank you breaking corporate news as well apple says it will invest $1 billion in a new campus in austin, texas. the campus will be 133 acres in size and will accommodate 5,000 employees at first with the capacity for 15,000 in total down the line. it will be located less than a mile from apple's existing

facili facilities in other corporate news, under armour shares dropping sharply yesterday following its investor day announcements frank holland has those details. >> shares of under armour are down about a half percent in premarket trading after they dropped more than 10% yesterday as management outlined the company's five-year plan under armour's earnings and sales guidance for fiscal 2019 both below analyst estimates it's forecasting sales growth of 3% to 4% and flat growth in north america. analysts were expecting growth of 5%. over the following three years, 2020 to 2023 under armour expects revenue growth in the low single digits, but europe, africa and the middle east could see double digit growth over that time. under armour is facing increasing competition in the sports apparel market from nike, adidas and lululemon and they've been hurt by the bankruptcy of

retailers like sports authority. they plan to cut the number of products they source from china by half in over the next five years. under armour is still up more than 35% year-to-date. the ceo, kevin plank, will be on "squawk on the street" today at 10:00 a.m. eastern we'll hear more about the company's plans. i bet we'll see those new steph curry sneakers >> kevin plank it in the hot seat these days. thank you very much for that update. oxford industries down sharply this morning the owner of the tommy bahama brand reporting results that missed forecasts the company says demand has been slower this quarter and it's cutting its earnings and sales guidance for the full year those shares are off by 11%. shares of tailored brands down 25% the clothing retailer is cutting its outlook for the year after sales at its men's wearhouse

chain softened last month. it expects comp sales to be in low single digits this quarter partly due to a decline in suit sales. coming up next, the brexit battle theresa may sees another day as uk prime minister, but there's still a long road ahead. we're live in london with the latest brexit news. and crude oil has had a tough go of it recently, down nearly 30% in three months the one factor that could boost prices when "worldwide exchange" returns after this break your brain is an amazing thing. but as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. healthier brain. better life.

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welcome back let's check how markets are setting up this morning. futures pointing to a slightly higher open. 55-point gain for the dow. the nasdaq up by 27, and the s& up by 5. on the european side of things, we're watching the european trade, the central bank will meet today it's expected to announce an end to its qe programs, but the real key will be to watch the tone of its guidance a policy decision around 7:45 eastern time followed by a mario draghi news conference at 8:30 a.m. european time dax is off marginally. ftse and cac just about flat on

the session so far it's been a wild week on the brexit front uk prime minister theresa may survived a confidence vote by her own party late yesterday williams wilfred frost has the latest from london. >> the uk prime minister secured 200 votes in her favor, 117 against. she cannot now face a similar challenge from her party for 12 months sterling was up yesterday. the gains were capped by the size of her victory, which was less than she would have liked >> while i'm grateful for that support, a significant number of colleagues did cast a vote against me, and i've listened to what they said following this ballot we now need to get on with the job of delivering brexit for the

british people >> so the prime minister is heading to brussels today to try to improve her brexit deal >> for my part i've heard what the house of commons said about the northern ireland backstop. when i go to the european counsel tomorrow i will seek legal assurances that will assuage the concerns that the members of paraphernaliament ha parliament have on that issue. >> the challenges to her brexit deal may still remain. late last night this comment from a member of her own party saying she clearly doesn't have the confidence of the commons. she should make way for someone that does. this comment from jeremy corbyn saying that tonight's vote changes nothing. her government is in chaos she's unable to deliver brexit sterling, as i said up yesterday, up today, but week to

date lower than where it was at the start of the week, and that already from depressed levels. dom? >> theresa may stays in power for the next 12 months, what does it say, this vote and its outcome and the number of people voting against her about the type of leverage or power she has in negotiations with the european union on a future deal >> that's a very good question to ask her power in the medium term is lower. in the long-term it's certainly lower. the math here in parliament is difficult. she got 200 votes of her 317 mps, but there are 650 seats in parliament in total. the math numbers are tough, and the european union knows that. so will they break their own red lines? that's the question. we may get a better answer of that moving forward.

and she committed not to stand in the next election here in 2022 as we get closer to that date, that potential name tag of being lame duck will start to arise. but she does have one thing in her favor, she committed loud and clear to carry out brexit. her authority on brexit enhanced because she can't face that challenge from members of her own party for at least 12 months, and she has one big threat she can make to those brexiteers in her own party who don't like her deal. as we get to the next meaningful vote, likely in january, she can say this, either you back my plan or i'll hand power over to parliament where there is a majority of remainders and you face no brexit at all. that threat she made before, that threat enhanced with last night's victory. >> williamson, thank you very much for that update. let's talk about the market implications

let's bring in eric nelson from wells fargo. you heard wilfred talk about that drama around brexit there was a lot of price action positioning wise to the down side 1.25 for pound sterling back up to what we're seeing here what does it say about the future prospects for the pound now that we've seen an incremental development? >> i think it could get worse before better. i think over the next couple of weeks you'll see ongoing turmoil. you need to see that deadline become more real from members of parliament before something happens. so we're looking for longer-term gains in the pound before that happens we could see more down sidside >> the question remains on whether or not the uk economy is doing well enough to sustain a stronger currency. as we talk about the brexit headline to headline moves, we're also talking about the long-term prospects for the economy and the pound. long-term prospect wise, is the uk economy positioned well enough to support that currency

move >> yes i think over the longer term sterling is yun vundervalued soi think we'll see a bounce next year as some of this uncertainty fades. when you take the economic picture plus the fact you may get the boe to hike rates once or twice next year, it's easy to see how the pound can get stronger from here you just need to get through this turmoil in the short-term >> one currency pair we don't often talk about here in the u.s. but it is in focus right now in europe is euro/sterling that's one that many are watching as a proxy for the brexit negotiations for europe tell us what you think that relative pair trade will do. more biased towards euro strength, more biased towards pound strength >> we think three to six months pound gets stronger against the euro this is a large risk premium in that pair, favoring the uk if

things go well over the longer term, we think the ecb will probably normalize more decisively than the boe we also they the eurozone prospects are stronger than the uk so it's easy to see how the euro gets stronger against the pound. so up and down against the euro over time. >> there have been news catalysts with regard to what happens to brexit in the uk and the european union it's not the only game in town when it comes to your universe there are multitudes of currency pairs to watch where do you think the most attractive opportunity lies in the market >> i think the euro provides some longer term best value. i think there's a sizable degree of concern around the ongoing recovery there a lot of people are thinking the ecb will never normalize policy. if we do get things to improve on the italy front, if we see the ecb start to raise rates by

there's a lot of upside for the euro next year >> thank you very much well, coming up on the show, a tech check some big-cap names pushing higher after a volatile few weeks. how to trade the fangs .a.n.g. s > d aticeloh's >>anwh mha cen sentencing could mean for life at the white house that's when "worldwide exchange" returns. 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.

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live in our nation's capitol, still darkness there but things will brighten up quickly. reaction still pouring in following the sentencing of president trump's former lawyer, michael cohen. tracie potts has more on that story. good morning cohen is going to prison he's got a date, march 6th is the date he's supposed to turn himself in but we are also learning that a ceo who has admitted that he conspired with the trump campaign to pay hush money will not face prosecution >> mr. president, your reaction to michael cohen >> reporter: not a word from president trump about his personal lawyer, michael cohen, going to prison for lying to congress about plans to build trump tower in russia and hush

money payments to women mr. trump denies having affairs with >> he directed cohen, and that it's more than simply, you know, being complicit. >> cohen told a federal judge blind loyalty caused him to cover up trump's dirty deeds but most of the charges, fraud and tax evasion, were from cohen's own business >> cohen's a liar. i can't draw any other conclusions. i don't draw many conclusions when someone lies to congress. >> i've yet to see ef coming from mr. cohen of collusion. >> reporter: cohen may have more to say >> it tell all the truths about donald trump in front of a congressional committee. >> reporter: and ami, the mpy that owns the national enquirer cut a deal to avoid charges after paying $150,000 to karen mcdougal they say the money was

coordinated with the trump campaign to help influence the 2016 election. back to cohen, he's been ordered to pay nearly $2 million in fines and restitution. dom? >> tracie potts, thank you very much for that. coming up next, key sectors to watch one market prois zeroing in on two groups of stocks he'll tell you what they are next. plus texting like it's 1996. a company will pay you $100,000 to switch up your smartphone, but there's a big catch. we'll explain when"worldwide exchange" returns.

markets now, u.s. futures pointing to a higher u.s. open on the hopes of a trade break through. apple is betting big on texas. the tech giant investing $1 billion in a new campus there. and throwback thursday are you ready to ditch your smartphone one company wants to pay you big bucks to take a trip down memory lane but there's a catch it's thursday, december 13th you're watching "worldwide exchange" on cnbc. ♪ good morning welcome to "worldwide exchange." i'm dominic chu. brian sullivan is off today. let's kick off the second half of the show with the top

stories. frank holland is back with those. >> here's what's leading cnbc.com right now theresa may will head to brussels today for an eu summit after surviving a confidence vote in parliament yesterday may is expected to ask other european leaders for some reassurances about her brexit deal to help win over skeptical lawmakers in theuk a draft statement by the eu says there can be no major changes to that brexit agreement. china says a second canadian businessman is being investigated for allegedly harming national security. a former diplomat was detained earlier this week. both men have links with north korea. china's move comes following their arrest of huawei's cfo in canada earlier this month. she was released on bail tuesday but still faces extradition to the u.s. and apple announcing they will invest $1 billion on a new campus in austin, texas. the company also plans to open new sites in seattle, los

angeles, and expand in pittsburgh and boulder, north carolina this will create up to 20,000 jobs in the u.s. dom, back over to you. >> good news thank you very much for that. let's check the other top headlines outside of business. phillip mena has those >> good morning. we have breaking news out of turkey at least nine people were killed and 47 more injured after a high speed train collided with another locomotive and crashed into an overpass at a station in ankara dozens of emergency workers raced to the secene of the wreckage. a pilot was injured after ejecting from a military jet during an exercise off the coast of honolulu. the pilot, a 47-year-old civilian contractor for the hawaii air national guard had to be pulled from the water by people in a private sail boat. an emergency services spokesman said the man appeared to have traumatic injuries the cause of the crash sunday investigation. a popular new toy has

parents and the internet going crazy. they're called yellies, it's a spider-like toy and it's operated by your voice the louder you yell, the faster they move. parents are not thrilled by this toy leaving funny reviewing online suggesting maybe they're better gifts for parents you don't like >> let's check on how the markets are setting up futures are pointing to a slightly higher open with the dow jones up 47 points the s&p up by 5. the nasdaq up by 30 points when we look at the s&p 500, the way things are setting up now, we are in this trading range, something we've been talking about and traders have been noticing for the past few weeks. just around that 2600 level represents the bottom level of this range a hair above 2800 on the s&p is where this level is. a lot of movement in between there. we'll see if those ranges hold movement in the ten-year

treasury note yield, higher than it has been, but still lower today. the two-year note yield, 2.77% the 10-year note yield a hair below 2.9% at this stage here that move in treasury yields for the overall yield curve, are we seeing a flattening or a steepening looking at the two-ten spread, a general down trend line over the course of this year. we've seen a bit of that flattening out here, but again, this level is still very low compared to what it has been over the course of the past few years. on the asia trade, it was generally positive the nikkei, hang seng and the shanghai composite all up by a percent or more. on the european trade, we have been seeing a little bit of move off the highs of the session but still it's a mixed one not that far up or down. the dax now marginally positive. the cac in france and the ftse 100 marginally negative.

italian banks something to watch. the minute up by 0.37. let's bring in dan if we look at that risk sentiment, are we in a situation where this is a buyable dip in your opinion >> well, that's a good question. thanks for having me like you mentioned before, markets are in a trading range between 2600, 2800 on the s&p. i think the markets are still looking for a bottom we see the short-term view as trendless right now. so to suggest it's a tradable bottom here, you can trade it on a short-term basis within that range, but quite frankly we think that there's still more downside to go, at least over the short run. we have not seen real signs of capitulation in the markets. we had a few sort of heavy bleeding days, some 90% downside days where the majority of

sectors and stocks are participating in the selloff, you have not seen that real flush. over the short run, maybe within the next few weeks or so, maybe into the new year, the s&p 500 could break 2600 one more time, give us a real panicky type of day on heavy volume and heavy selling, then we could see signs of a bigger bottom in the markets for 2019 beyond this correction period we're still bullish on the markets. if you look at the history of any bull market you go through these correction periods it is a cycle and a process that can take several weeks if not months you could have multiple tests of the lows you could break to new lows. the bottom line is you want to flush out those sellers. you want to exhaust those sellers. i'm not entirely convinced we've seen that yet. we continue to view choppy markets over the short run there will be violent swings in

both directions. i do think you could either see a test or a break of that 2600 level before this is said and done >> dan, as we talk about the choppiness that you referred to, one of the things that we looked at yesterday was the leadership of the market going to record highs. and those stocks are among the choppiest out there at these levels indicating there's a battle developing, whether or not people want to buy boaten do beaten down shares of apple, netflix, technology or other communications services oriented name are those names would be looking to to add to a shopping list if there is a resum zun ption of t uptrend? >> typically in big correction cycles and bull markets you can see a shift in sector leadership f.a.n.g. has been an outright

leader for the last year, maybe one or two years if not longer we're starting to see a shift in leadership one interesting development throughout this correction process has been the outperformance of healthcare not just healthcare defensively in down days, on our rally days as well we're seeing healthcare outperform the markets one thing we did was we created or built a ratio of healthcare divided by technology to see the relative strength between those two sectors. healthcare for the first time in several quarters is really starting to turn the corner relative to technology so our theory is as we move through this correction process, investors may be rethinking their overweight in technology and broadening out or i do ve e diversifying that part they have

in tech. so our guess is once the bull market resumes, we get past this correction process, the market finds a bottom, we see that upturn on a significant level, you will see more of the pro cyclical, pro growth areas start to lead, biotechnology, life sciences, buy p proproduction, things of that nature. we made note of market sentiment given the record highs and the drop from there down to where we are now as we look at market st.men mse, can we say we went from an accentuate positive market to an accentuate negative market >> absolutely. sentiment has skewed bearish very quickly to that point the markets are not really expensive here.

in my opinion the market multiple is rather cheap i think the trailing 12 now on the s&p 500 if i'm not mistaken is somewhere around 16 times or 17 times historically that has not indicated peak multiple in terms of secular bull cycles the fact that sentiment shifted or skewed to the bearish side so quickly gns a gainst a decent multiple, i think this will prove to be a great buying opportunity. what's going to shift that sentiment, the market. the market is a leading indicator and a discounting mechanism of sentiment i don't know that any binary event may shift investor sentiment from bearish to bullish, but once the market finds its bottom and breaks out above that 2800 zone to new highs, which we think it does in years ahead, you will see sentiment shift back from the bearish position it's in today back to bullish. >> got you

dan, thank you very much for those thoughts on the market time for the top trending stories. frank holland is back with those. >> good morning. our top trending story is about the top trending topics of 2018. at least according to google the top trending search was the world cup. goal followed by avicii and mac miller, two of the sadder stories. the world cup got the top spot again. it just beat out hurricane florence and the mega millions i goinged that myself about a thousand times >> you also were in the field reporting on it. what when it came to sear-- wheo searches of people, it was led by meghan markle and demi

lovato here's a question, are you particular about your holiday decorations? >> i am. i try to keep it minimal i like the artwork, everything else maybe have a couple wreaths around the house and a tree with lights that's it. >> other people have different tastes one commuter is upset about the holland tunnel's christmas spirit, that the christmas tree is not over the "a" in holland he started a change.org petition which has thousands of signatures he says this is all in service of making his commute just a bit easier on the eyes it does make sense, >> the "a" does look like a tree he also has a point, because anybody in the tri-state area who has gone through the holland tunnel sits there in traffic staring at that sign as they inch closer towards the entrance of the tunnel. if you can do anything to make that trip easier on the eyes,

then maybe that's a good thing >> there you go. here's an important question how long could you go without your smartphone? >> i think that i could go quite a bit without my smartphone. >> i know i can't. only this segment because i forgot it. if you think you can make it a year, vitamin water will pay you 100,000. those who think they can make it can share on instagram or twitter why you think you would be successful with these hashtags, no phone for a year and contest. vitamin water will pick the winner and provide the contestant with a 2000 era make a call only cell phone i think they should give them a phone in a bag >> my dad had one of those, it was a mitsubishi bag phone you had a big pack >> i loved those things. if you can go six months without your cell phone, they'll give you 10,000 >> that works. i could do that. >> 15 minutes, a dollar. >> perfect

frank holland, thank you very much coming up next, f.a.n.g. in focus. are the big cap tech stocks gearing up for a turnaround? we're gointog discuss

that's a live shot of times square traffic is picking up at 5:46 a.m. eastern time. it will only get busier as the day progresses let's check how markets are

setting up futures are pointing to a higher open dow up by 50 points. the nasdaq up by 33. s&p up by 6. the big tech stocks rallied yesterday, but it's been a volatile few months for the f.a.n.g. stocks. the s&p 500 tech sector falling 12% in three months time let's bring in tim lesko tim, so goes apple, so goes the market i heard it a lot over the past few weeks. does happenal r pple represent l key to the market? >> when you were the largest market capitalization market company, you represent the largest holding in the market. so when people buy the market, they buy you when they sell, they sell apple. certainly if we thought apple was the only sentiment

indicator, perhaps it would trade at a market multiple or higher which it has not done in years. >> that valuation argument is one that's been made for apple's case even at higher prices is apple a compelling investment at this stage? >> i think that's why value investors get so interested in something like apple when it comes off close to 25% you have a company trading at 13 1/2 times earnings, which has become a much more stable earnings stream. so far we actually have not witnessed any disappointing earnings all of the price movement in apple has been a result of a change in sentiment and fears of future sales >> so, tim, if we have that sentiment, what actually gets invest, excited about apple again? it does pay a dividend it does buy back stock it's a cash flow machine what is it that it needs to do to communicate that message to get more people interested in buying those types of shares

>> well, i think you used the right word on that communicate. the last quarter they decided they would no longer release iphone sales figures that's really spooked the market it made the market fear that those numbers would be poor. apple needs to do reassurance of the market that across their product spectrum, services, hardware, software, that they have the revenue and earnings that people expect them to have. until they have another earnings release, i'm not sure the market will get that constructive >> there are certain key parts of technology, communications services, consumer discretionary that are all on sale after this recent market selloff. what in your mind represents the most attractive opportunity of all of those places that have been beaten up >> as value managers we seek to find those companies that have strong earnings, strong balance sheets, that for some reason are trading at a discount to the

market if you look at semiconductor space, you can see massive selloffs the cheapest ones of those groups are probably the biggest opportunities. the market must be feeling that somehow that 5g cellular technologies and smartphones will never sell again because they're trading at discount multiples. >> tim lesko, smuktethank you vy much >> thank you. still to come, oil under pressure prices in freefall the last few months we'll tell you how to trade the downturn don't go away.

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pressure wti crude falling more than 25% in three months. what could be the catalyst to actually support and maybe even bolster prices let's bring in john kilduff, founding partner of again capital, cnbc contributor. can we start with what happened yesterday at around 2:30 p.m. eastern time, around the oil close? we saw a nas sievmassive amount selling pressure was there anything that could have driven that move to the down side? >> prices were struggling all day to hold on to the gains in the aftermath of the opec meeting, this 52.50 level, couldn't really do it. then the iranian oil minister was talking about infighting within opec and calling into question about the commitments they made on production and trying to stabilize the markets.

is that what the oil market has become now moving in that way i know this morning you have been talking about ranges. right now the oil market settled into a middle range. between about 50 bucks, a historic level, both going up-and-coming back down. we're watching for more retracement to the upside but we need to take out that 54 level the test for the market is does saudi arabia and russia deliver in a big way >> we heard so much, we talked a bit about the force majeure happening in libya because of the largest oil field out there being seized by militia, armed members of the citizenry there does it still come down to ropec

or opec plus and the production cuts and whether they can stabilize the markets? >> yes and no. there's a big challenge from the u.s. shale production which has skyrocketed. looking back over the past year, you had these fragile situations that generated a compliance with the opec regime from november 2016 of upwards of 160%, 180%. that achieved draw downs of global inventories if they're back at it, if they're going to commit to that in a big way, then the price should stabilize and head back up at least for a time >> u.s. shale, you brought it up the u.s. is the biggest shale producer in the world. is oil at 50 to 54 still okay for the u.s. oil industry? >> i would say it's just okay,

but it's okay. it's enough for them to get through. the problem they're all facing, is there another price break looming for 2019 that looks likely in terms of slowing economic activity and the push to push oil volumes higher and higher in the u.s >> all right we'll be watching those oil markets closely. john kilduff, thank you very much for those thoughts. a quick check on what's happening with the futures we're seeing some positivity dow jones up by 37 points. s&p up by 4 or 5 points. nasdaq up by 27. we also want to call your attention to what's happening with other parts of the market looking at europe, we do have a big amount of central bank speak coming out at some point today we're still waiting on some of that talk coming out from the european central bank. the dax ahead of that, just about flat the cac in france, the ftse 100

also slightly down that does it for the show. "squawk box" picks it up after this commercial break. 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.

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that's still more than my ge option it's thursday, december 13, 2018 "squawk box" begins now. ♪ live from new york where business never sleeps, this is "squawk box. good morning welcome to "squawk box" on cnbc. we're live from the nasdaq market site in times square. let's look at the u.s. equity futures. you saw a positive close for the markets yesterday. the dow finished up by 157 points, was as high as 548 points this morning futures indicated up by about 26 points, the nasdaq up by 23, and the s&p up by