it's 5:00 a.m. futures pointing to a triple digit loss at the open after the dow posted its single biggest point day gain ever. the nikkei in japan jumping 4%, and in europe many markets reopening today. crude oil prices pulling back a bit now this after soaring nearly 10% on wednesday. don't forget about bonds and borrowing costs. we'll tell you what the yield curve is saying right now and why it's important to your money. it is thursday december 27th

"worldwide exchange" begins right now. ♪ all right. good morning from wherever in the world you may be watching. i'm brian sullivan you thought you were watching a market show about finance. this is a roller coaster ride in disguise look at the futures. investors are waking thank you morning after yesterday's historic heroic rally trying to figure out what market story to believe. we had the worst christmas eve session for stocks ever. dow fell more than 600 you know what happened yesterday. stocks posted their best day on a percentage basis since 2009, and the single biggest point gain ever rising 1100% look at dow futures now. they are not only down 400 points, they were down 200 points about an hour and a half ago. and they have been losing steam fast the market is primed to give

back a lot of what it gained yesterday. i'm not that good at math. down 400, down 600 monday. that's about the 1,000-point gain we had yesterday. what a wild final week to the year let's look at the bond market. the one silver lining is buyers of bonds have come in yields have come down yield on the ten-year, 2.76% it was a solid yesterday session overnight for the nikkei in japan. up by 4% the topix jumped 5%. those two indexes were crushed 1,000 points their own on christmas day. european markets were closed yesterday for the boxing holiday. they're now open they're in the red they're not following our rally. oil selling off, too oil jumping nearly 10% yesterday oil stocks came up with it wti traded crude down 2.25% now.

45.13 a barrel we have full team coverage of these crazy global markets for you. dan verut is in studio with us, but let's go to joumanna bercetche in london first. >> brian, we were hoping for a santa rally in europe. we were closed the last couple of sessions. we saw that 1,000-point rise in the s&p and the dow, we came in this morning and it's a sea of red. european equities are not buying the story. seemingly taking their cue from chinese equities overnight and not so much from japanese equities and u.s. equities behind me we have ftse 100 down 0.8% xetra dax almost down 2% we're a couple hours into the trading session. just to give you an idea, this takes the dax to almost 24% off its 52-week high not only in bear territory, but really getting close to that 25%

mark as well ftse mib also not faring that much better. here you have a few idiosyncratic banking stories weighing down on that index. as you can see behind me, it's a sea of red i want to talk about sectors as well in yesterday's session, the u.s., you saw a big bounce in the tech sector. not so much the case in europe every single sector is trading in the red retail, you would think around the holiday season, that would see a bounce that's trading down. cyclicals, banks also struggling, down 0.3%. at the bottom we have the defensive utilities down 2%. autos continue to be in the line of fire when it comes to these trade discussions between the china and the u.s. continuing to get hit. as a sector they're down 25% for the year basic resources down 1.5%. not a pretty picture for anyone who is hoping to see a santa rally in european equities as we get into the last couple sessions of the year, that he will be disappointed

>> they are. a lot of red on the screen thank you very much. now let's bring in dan verut from palasade capital management down 600 on christmas, up 1,000 yesterday, now today down 400. what's going on? >> it's a waste of a clean shirt day. markets are so illiquid. we're completing this selloff and i believe we're bottoming. the bottoming process is exactly like you're seeing lots of volatility we're at the end of the year soin ve so investors can continue to take tax losses into the end of the year once you clear things out we'll have a better look back at january. when fundamentals don't work you have to rely on the technicals

friday and monday were almost put call days. new 52-week lows that's get me out of everything. anything that's glued -- >> what was yesterday, get me into everything? >> at some point, you rub on ouf stuff to sell. you run out of inventory to sell you get these huge snap backs, and then pullbacks off the snapbacks. we'll see where we are you don't know where we'll be in a couple hours when the market actually opens up. >> that's an important point the one thing -- even with yesterday's gains, the biggest point gain of all time, great percentage gain, it's still the worst december for the dow since 1931 this is not as much people wanting to sell as simply no buyers if i'm trying to sell you something, 50 bucks, how about 49 48 47 46 that's what's happening. there's no buyer in there to

step in. >> and you're not price sensitive. >> dump it get rid of it. >> exactly right we have had several of these kinds of 15% plus types of corrections. 8 of them since 1946 did not result in a recession. the grand daddy of them all was the 1987 crash those of us who were around then remember that there was a new fed chairman back then, a fellow called alan greenspan. >> untested young buck >> he kind of turned the tightening screws one too many times, which probably was a contributing factor to the crash then it was called portfolio insurance that contributed to it today it's etfs, algorithmic trading, all these different kinds of trading strategies. there will be an autopsy on the selloff like every other one -- >> i know the numbers have gotten bigger. we have a great audience very smart

of course the numbers get bigger things go up i get it you have 650 points down on monday 1100 points up yesterday now we'll fall 400 that's a weird market. i've been doing this long enough to say that >> yeah. you know -- >> who is in charge? >> that's a good question. there's always regime change of who is in charge who are not around are the fundamental buyers and sellers there's always a battle between the man and machines i just think right now man is on vacation and machines have taken over >> there's less volume, which means more volatility during this kind of holiday week. for people at home, they see these wild market swings and i'm going on the "today" show later this morning to talk about these wild market swings want do we tell them to give them comfort you heard the sea of red, a lot of ocean analogies today is it safe to go back into the

water? >> depends on what your outlook is i'm confident telling you a year from today you and i will be talking, stocks will be 15%, 20% higher >> than now. >> than they are now have me back on this day, we'll talk then. in the interim you'll have a lot of volatility. in the long run it doesn't matter if you time these things t goes to show you can't time markets markets have been volatile at times. we've been in this type of period we've seen these types of periods. i don't think it's been different than in the past i don't think there's a big economic change that will take hold at this point the stock market is probably the worst predictor of any sort of a big economic change. >> the kids call it time stamped. social media as well december 27th, 2019, god willing we're both still sitting here, we will be up 15% more than now? is that the bet? >> yes >> okay. breakfast on me if you're right?

>> we'll shake on it >> happy new year. some words of comfort there. he thinks we're going up. coming up, why one prominent investor is saying the fed is likely to cut interest rates next year. you'll hear from him coming up. as we go to break, check out more stunning stats from yesterday's record breaking rally. dow up nearly 5% biggest percentage move since 2009 we're back after this. that's great. but right now you've got your hands full with your global supply chain. okay, france wants 50,000 front fenders by friday. that's why you work with watson. i analyzed thousands of contracts and detected a discrepancy. it works with procurement systems you already use to help speed up distribution without slowing down your team. frank, tell fred full force on those french fenders. fine. fine. fantastic. for ai that knows your industry, choose watson. hello! the best ai for the job.

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welcome back with the futures market, dow futures, you say the dow futures are down 283 points. that's tough 20 minutes ago they were down 400 points thinly traded. 5:13 on the east coast a lot of people on vacation. so the less volume we have, whenever there is a buy order or sell order put in, you have a bigger move. dow futures were down more about an hour ago in the session we've seen dow futures not necessarily be the best representation of where we end up how about this, from right now until the end of "mad money" and on, keep an eye on cnbc. this could be another wild day in the market. speculation about what the federal reserve will do has been

a huge part of the recent market discussion here's what scott minert told us on cnbc yesterday afternoon. >> i would say it's 50/50 right now that we get a pause in march. and at that pause, depending on what happens with the markets and the economy, because we are starting to see weakness in the manufacturing sector, we just got the richmond pmi today, which was down dramatically, i think there's enough uncertainty here that the fed is likely to pause just like it did when oil collapsed back in 2015 i believe they have overdone it. i think the pace is double what it should be the fed may realize it would be in everybody's best interest if they went back and took a hard look at the balance sheet policy and slowed this thing down >> making a big call, saying

maybe there's a 50% chance that the fed is not only going to raise rates but cut rates what is he doing with clients money here you go. >> i would be a buyer more than a seller at this point even if we get a further collapse in prices from here is going to result in the fed announcing it will take action we're close enough to a bottom. >> he is not one of those bulls on the stock market. back in april he said there was a risk that the market could have a 40% decline and that recession in 2020 could happen so he thinks a rate cut may be in the works for 2019. among the other big factors for the market and your money is the u.s./china trade fight we are now learning that the u.s. trade delegation will travel to beijing the week of january 7th to hold talks with chinese officials. now the group will reportedly be led by deputy u.s. trade representative jeffrey jarish and include treasury under

secretary for affairs david malpash, so that is not mnuchin or lighthizer, so not the "b" team but not heaviest hitters in the government reuters reporting that the white house is considering a new executive order to ban u.s. companies from using telecom equipment made by either huawei or zte this would be the latest move by the trump administration to keep those two chinese companies out of the u.s. market the white house argues that huawei and zte work at the order and behest of the chinese government and their equipment could be used to spy on americans. defense stocks like many other groups have fallen off a cliff over the last couple of months look at that chart the question is whether a turnaround could be in the works. here's morgan brennan with your 2019 defense playbook.

the 2018 year marked the start of the military's rebuilding as the d.o.d. dolled out big contracts, the space force shifted from sci-fi fantasy to on-paper proposal but 2019 may be tougher. peak defense dollars brace for a spending showdown as the pentagon proposes a bigger budget and some officials balk the wildcard president trump who wants a stronger military and more recently called for budget cuts. was should keep spending strong, a u.s. defense strategy focused on russia. a tight labor market a shift to the cloud and the air adoption of ai will fuel a race for more of the 2$250 billion government services market. expect continued m&a on government contractors looking for more for less and

contribution from big tech as they seek out high-level high security work. and third, hyper sonic hype. russia has them, china has them and the u.s. is developing them as well. hypersonic missiles. the u.s. can't defend against them so attention will turn to r & d and to long discussed concepts to add sensors in space, something once farfetched until startups began making space cheaper. >> all right morgan brennan with your 2019 defense sector playbook. coming up, the marshal governmegol partial government shutdown now in its fifth day what you need to know about it coming up. first as we head to break, a look at the premarket winners and losers after the dow's record breaking nearly 1100 point gain mcdonald's, j & j and travelers all in the green in the

premarket trade. microsoft, disney and nike are look at declines on this thursday

welcome back if you're just waking up, it was not a dream. the dow did gain 1,086 points yesterday in its biggest point gain ever.

in percentage terms, which market pros will tell you they care about percentages, not points, the index jumped 4.98% if you're counting at home, when was that the best percentage gain since you will tell them since march 2009 in washington the partial u.s. government shutdown entering its sixth day. it appears less likely that congress will return from holiday recess unless a deal is reached for the border wall. scott mcfarland has more on the shutdown day six good morning day six of the shutdown is more than likely to lead to day seven and day eight. president trump restated his demand for $5 billion to be set aside for border walls or border fencing saying it will stop human trafficking and drugs and illegal immigration. nancy pelosi countered saying this is the president's

shutdown he seems not to be able to get himself out of it hundreds of thousands of federal workers are off the job. those deemed essential, they're still working, but the timing of their paycheck is unclear. house leaders promised 24 hours notice before having a vote to reopen the government. there's been no notice so this shutdown goes on brian, back to you >> scott, thank you very much. let's talk more about the shutdown, politics and washington, maybe just a skosh about the stock market jimmy pethokoukis joins s. everybody knows who you are by now. >> please say it >> jimmy, before we get the shutdown politics, down 600 on monday up 1100 points yesterday you thought you were watching the stock market reality at six flags. what do you think of these

moves? >> if i'm an investor it doesn't make me confident being in the stock market with these wild swings that may or may not be attached to fundamentals, given that the economy still looks okay consumers are strong wages are up cheap gasoline if i was the average investor looking at that, i would say those guys or algorithms are crazy. maybe i should be in cash. i would find it unsettling >> we like it -- most people own stocks it's good when stocks go up. >> we hlike them when they go u. >> most people don't short stocks we buy things and hope they go up in volume 1100-point gain looks nice, but you're thinking wild swings either way don't seem like the hallmark of a healthy market >> if you think that ultimately wall street is over the longer term is efficient, rational,

it's about distributing capital, all that good stuff and you see what's going on, there was that great "wall street journal" article looking at the algorithms, this is like artificial intelligence moving things and different than the warren buffett approach to investing. >> we need to put the capital in capitalism that's the idea of the stock market i will take a sliver of the american dream, i like this company, they make ice cream or jet engines. i will take a slice of that and hopefully i will get rich with them companies need our money we need their gains. everyone wins. this could be -- this kind of stuff where people are getting frustrated with the market, bad for capitalism, is it not? >> it is bad for capitalism. you like to think somehow what goes on these financial markets, it's not just all algorithms and trading. maybe on a day-to-day basis, but over the long-term it's attached

to the economy we had mnuchin talking to the ceos, getting their take on liquidity. do they have enough capital and all that the same banks they represent, nobody is forecasting recession or anything close. a slowdown, sure but the only person forecasting recession is larry summers he gets that right, huge feather in his cap, i guess. goldman sachs, jpmorgan, a slowdown but back to the 2% economy we had >> which, by the way, let's take the other side i get it, the bears out there are saying we'll slow down a couple years ago a 2% economy would have sounded good. >> that's potential. >> b minus or a b plus, can't be bad one way and got other way. i guess unless you think the trend is past 2% to 1% to recession. do you

>> no, we grew at 2% for a long time, we can continue to grow. the tax cut is not to juice the economy, it's to increase investment and productivity. that really hasn't happened. we've seen a bit of an uptick. we are a 2% over the past few years and we should be 2% going forward. we shouldn't freak out about that >> we had a big interview with scott minerd yesterday, smart guy, he said i like jerome powell, hoe's a smart guy, but h made some wording mistakes if you look at what mnuchin has done, i called the banks and everything was fine, nobody asked that we thought everything was fine the president was sending out tweets the snarks on social media say everything was so good because everybody kept quiet is there a lesson here

>> there's a massive lesson that investors don't like the crazy there's a process. we have a financial oversight stability counsel that mnuchin could have called them he could have had a meeting. there's a process. it's also lack of process where it looks like the white house, particular the president are just not following the rules a lot of things are unpredictable now there's a process for how decisions are made not just with the shutdown but also with china, which is a much bigger issue >> let's see what happens. see if that process can kickb k kick back in maybe all is quiet on the d.c. front, who knows jimmy, mresh shoupleasure to gen happy new year to you and your family >> you, too.

market whiplash. huge swings in stocks this week. we'll try to make more sense of it why the market is doing what it's doing as we head to break, check out some of the top performing sect nrs yesterd sectors in yesterday's record breaking rally big gains all around

it's up one day, down the next, not your mood. the wall street opening. after yesterday's single biggest point gain ever, it could be another wild day on wall street. technology is tough. the f.a.n.g. stocks adding 185 billion in market value yesterday. five companies, 185 billion. and what this december and october 2008 have in common. that's coming up on the rbi. you're watching "worldwide exchange" and the second half of the show rolls on right now. ♪ >> welcome back. thank you for being with us. i'm brian sullivan if you are just joining us, yesterday a record breaking point day. not a record breaking percentage

day. now the dow futures are down again. off about 285 points i'll give you some silve lining i will give you a silver lining. down 285 we were down 400 about an hour or so ago. maybe the trend on the futures is your friend first as always let's kick off the second half of the show with your executive recap here is frank holland. >> here's what's leading cnbc right now. china's commerce ministry says china and the u.s. made plans for face-to-face trade talks in january. a spokesperson did not comment on reports that a u.s. delegation would visit beijing the week of january 7th. the meeting would be the first in-person talks since president trump and president xi jinping had dinner in argentina earlier this month. and president trump is

reportedly considering an executive order to ban u.s. companies from using equipment made from huawei and zte the order could come as soon as early january. the u.s. is alleging that huawei and zte work on behalf of the chinese government and their equipment could be used to spy on americans and jpmorgan will pay 135 million to settle charges by the s.e.c. regulators say the firm improperly handled thousands of transactions involving the shares of foreign companies as part of a broader probe for misconduct in adrs the finding against jpmorgan is the eighth action taken by the s.e.c. as part of that probe back over to you >> thanks, frank. let's check on the other top news outside of the world of money and business, phillip mena has those. moments ago president trump arrived back in washington after his first ever trip to an active combat zone. the president and first lady

made a pit stop on their way home greeting troops in germany. that visit coming on the hooe hs of his surprise trek to a base in iraq. millions of post-christmas travelers may wanted to pl to pr delays snow conditions in north dakota has hampered travel. travel is dangerous across much of the middle of the country more than 6 million people across 13 states are under winter weather advisories and warnings the federal trade commission is warning netflix customers about a new e-mail scam. criminals are posing as netflix and they're asking people to confirm payment details. experts say it's a good idea to avoid clicking on links like this in e-mails. it's best to log into your netflix account from the netflix website it seems like common

sense but an important message nevertheless >> a lot of things seem like common sense, and then -- that's how it works >> there you go. >> here's how your money and investments look right now stock futures inedicating a couple of things number one, we're down a couple hundred points we're thinly traded, and it could be another wild day on wall street. you were hoping for this holiday shortened week don't worry, we'll take off t will be mellow put bobby on the desk. come back in if you're running an equity trading desk, tell your family you love them and get back to the desk in the bond market yields creeping up just a bit in asia, they traded christmas in japan, 1,000 point decline for the nikkei, they came back bigley yesterday the japanese nikkei up in

overnight trade as well. overseas mixed in china, shanghai was down. in europe, they're not riding our coattails on the railly yesterday. only the cac 40 is up 0.3% the big story yesterday outside of equities was oil's massive move firing up nearly 10% the energy sector the best performing group some energy names rose 10%, 15% in run day oil down to 45.52. bitcoin down gold has been one of the few solid assets see what i did there solid. it's a metal too early for that joe trevesani joins us you try to make a gold joke doesn't work >> gold is not having a good time >> over the last couple of years it's not been good joe, welcome good to see you. you're more on the foreign

exchange side. i get that you have to have a macro view on the u.s. are we going into recession next year >> i don't think so. there are concerns all the action has been in the stock market the currencies had their run with brexit that will calm down and pick up again in the new year no there's no indication the u.s. economy at the end of the year is running at 3% if it runs into next year -- >> that's good you would have killed for 3% a couple years ago now people are like it's only 3% are there concerns yes. if the chinese and the united states do not get together as i think they will, the two of those economies could power the next two or three years. there are concerns in europe on brexit are these enough to drag the whole world into recession i don't think so the concerns are overdone. now, from a trading point of

view, with the run up we had in the past two years, does this make some sense? of course it does. at least as far as booking profits. but as far as real worries about a recession, i don't quite see it >> what's interesting is a lot of worries about the italian banking system paris was on fire a couple weeks ago. yet the euro against the u.s. dollar is still 1.14 i don't understand why the euro has held up as well as it has. >> i think some concerns there are not really the kinds of concerns that go beyond headlines. >> in what way >> the european economy is slow, but not much slower than it's been there's not real substantial change as far as performance goes germany was negative italians were flat this is not out of the ordinary. the concerns there are future concerns, but not in the market. >> isn't the market supposed to

pricexpects in the future >> it is but right now we're at the level where it has already come down. the euro has gotten higher then came lower the same for sterling and brexit you have a perfect example there. so now there's not a future that is that much lower than right now. so there's not real concern for a real recession >> that's positive news. 600-point delicline on christmas eve. 1,100 point gain yesterday futures indicating a 300-point drop at the open is that a healthy market >> no, it's a number market, though i speak as an ex-currency trader >> you're used to this that's just tuesday a normal day. for equity investors, those moves are not supposed to happen >> that's true but we have changes in the

markets. there are different trading inputs going into the market everybody will blame it on computer programs. it's an easy answer, but it's not as sufficient -- let's put it another way do you think this is a sign of a dysfunctional market i don't think so i think it's unnerving but if you pile it into the overall trend, whatever it is over the past six months, go backtor two ye for two years, no >> joe, pleasure to get you on happy new year >> amazing how 3% was so good. now it's terrible. >> everybody is terrified. >> yeah. weird. joe, thank you very much all right. let's find out what else outside of the markets are making news frank holland has the top trending stories >> guess what else we're talking about? happy hollywood. hollywood is so happy today

because they have a long-awaited holiday gift the domestic box office topping 11.4 billion, making it the biggest ever there's still four days to go the previous record was set all the way back in 2016 it was all about superhero movies, "black panther," "deadpool 2" and "jurassic park." >> if you had hollywood in yo your deadpool, you did not win you see what i did there >> i did i will start calling you the winter soldier all december you've been doing the 5:00 a.m. show, 59:00 p.the0 p.m. show. >> you too, my friend. >> only one time >> you would think i would be thinner. >> look at this guy. he's thin. >> this guy. >> this guy is cold. colin o'brady has become the first person to cross antarctica without assistance the journey was 930 miles long it took 54 days in sub zero

temperatures he was racing against lewis rudd to become the first to complete this feat. he documented the mostly uphill journey on his instagram and twitter pages. if you go on there, i love the captions one of them is i can't believe i'm still going uphill >> so that's what i read i'm not a bright guy i will ask a question for people like me that we think about. if it's all uphill one way, is there a fundamental reason you couldn't go the other way and then it would be theoretically downhill >> i dobtd knn't know much abou arcti antarctica >> maybe it's the weather. somebody out there, if you know why you have to go uphill and not slide -- it's a bunny slope the whole way. >> that's a logical question i'll tell you this my first job was in alaska, that was a miserable trip in alaska, which is warmer than

antarctica, about five minutes outside -- >> i got three states to go. alaska, hawaii, wyoming. >> let's make it happen. 2019 if you're like me and you need extra caffeine to make it to midnight on new year's eve, sbuks h s h starbucks what you covered they have black and white mocha drinks for new years it's crafted with espresso and topped with whip cream and the drink will only be available through the first week of january. >> coffee is a well known diuretic if you're out in times square where you can't leave, be careful how much coffee you drink. >> you're coming from outside the box today. >> safety first. thank you very much. coming up what to expect from social media companies. we'll roll out the crystal ball on big tech.

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welcome back in. dow futures indicate we will not continue yesterday's record breaking rally dow futures down 300 points. nasdaq and s&p are also down

we've seen some wild swings in the futures already today. it could be another wild day for the stock market down 640 on market up 1100 yesterday what do you expect so much for the mellow holiday week technology stocks posted their best day since back in 2009. amazon, microsoft, apple all had the most positive impact on the big s&p 500 etf, better known as the spdr how much has the talked about f.a.n.g. names meant to the market amazon jumped 9.5% netflix nearly 9 apple 7%, and google up 6% add that altogether and the f.a.n.g. group of stocks added more than 185 billion in market value yesterday. amazon as we told you yesterday morning had itself lost 350 billion in the month of december we have not gotten all those

losses back. it's still the worst december for the dow since 1931 like a lot of sectors, the social media names have been under pressure this year look at the global social media etf, ticker socl, down 19% year to date. will there be a silver lining for buyers next year julia boorstin has your 2019 social media playbook. ♪ social media giants were under fire in 2018 here's what to watch for in the year ahead first, social giants get hit with regulation, with the eu implementing new privacy rules this year expect more laws around the rorld regulaworld. plus expect antitrust juteny making it harder for facebook,

twitter and youtube to make meaningful acquisitions. second, fake news will spire out of control a step beyond misleading articles and inaccurate videos new technologies allowing the manipulation of video and audio will drive the spread of fake videos that look and sound authentic. finally social platforms will struggle with stagnating user and advertiser growth as the risk of social platforms grows and facebook fatigue and twitter trolling both users and advertisers will consider their expenditure of time and ad dollars. those businesses with fewer advertising options are likely to stay loyal to facebook. expect snap to distance itself from facebook's challenges. coming up on "worldwide exchange," what do this december and october of 2008 have in

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when the month of december is written, whatever the ultimate outcome, one thing we will say is it's been a wild and unexpected month for the market. even with yesterday's gains, we're on pace for the worst december since 1931. joining us is perry mandarino from b. riley fbr. the only thing i feel reasonably certain to say is that at the beginning of 2019 will be marked with uncertainty is that a fair statement i have no idea what will happen. >> i don't think anyone does >> somebody needs to have an idea who is in charge >> some algorithm maybe. >> don't say it. >> volatility is the new norm.

down 500 points, up 1,000 points >> indicating opening down 340 down >> where does it go? is it the algorithms is it the trading platforms? like 85% of the market activity is standard. >> with all due respect to people who will appear on this network today, tomorrow, yesterday, they say low volume so moves are exacerbated that is correct. if you're at home and you're watching your 401(k) or your stocks, you don't care about volume you care about the absolute result >> at the end of the day it's a balance sheet. it's worth something at the end of the day what happens tomorrow? what happens the next day? as people are saying, this is sort of a fun market there's uncertainty but what is causing that uncertainty >> much was made of the fed rate hikes. you seem to think it's more of the balance sheet reduction.

you have a combination the federal reserve raising rates. it's the combination of those two things >> it's selling off of the treasuries look what's happening to the spreads with the high yield market but there's other things also. there's brexit there's just the oil prices. oil went up yesterday. but oil could go down today. >> yeah. and it's indicated down. the reason that most people think it's good, you get lower gas, but there's so much debt attached to oil and gas. i know you think 2019, one of your predictions is there will be increased bankruptcy activity >> i think you will see certain companies that have been overlevered where lenders have been extending maturities of their debt, they just won't have it happen anymore it will have to stop. there has to be an end in certain sectors retail will continue to get hit. in oil and gas, with

fluctuations, debt comes due on certain days covenants get hit. >> how much does the tweets, the mattis stuff, i'm not asking for a political statement, but how much does the political stuff matter to the equity markets >> it's uncertainty. it's another variable that goes into either an algorithm or someone's judgment what happens in washington you have a new congress coming in is it just war between the democrats and republicans? that's not good for our economy. >> let's hope now. perry mandarino. happy new year >> thank you very much time for your morning rbi. yesterday was the biggest point gain of all time for the dow you know that. check out this random but interesting stated the previous two biggest point gains were both in october and both in the year 2008. october 2008 maybe not the best month and year to be compared to, but what a rally. either way we'll see which way

it plays out hopefully not like 2008. that's it for us "squawk box" picking up vegecora next

what a difference a day makes. u.s. equity futures plunging after yesterday's biggest ever point gain for the dow a full rundown of the biggest movers in the u.s. markets stocks in japan jumped nearly 4% overnight, china slid lower. we'll show you why china is sitting out the rally. and crude giving up some of yesterday's gains. seems to be correlated with our stock market to some extent. trading back below $46 a barrel. it's thursday, december 27, 2018 "squawk box" begins right now.

♪ welcome to "squawk box." i'm melissa lee with joe kernen and wilfred frost sitting in with us for the next two hours is mike santoli. let's look at yesterday's record breaking rebound the dow logging its largest one-day point gain in history. the 4.98% gain was the biggest upside percent move since march of 2009. it was the biggest post-christmas rally for stocks ever retail led the way shares of wayfair, kohl's, dollar general jumping more than 7% amazon stock up 9.45%, wiping out declining from the christmas eve selloff. the stock pairing some of those gains this mor