new year, same market madness. dow futures pointing to steep losses for the first wall street trading day of 2019. it's a sea of red across the globe. stocks from europe to asia all dropping sharply this morning. plus oil under pressure. prices tumbling on economic slowdown worries it's wednesday, january 2nd. "worldwide exchange" begins right now. good morning welcome to "worldwide exchange." i'm dominic chu. brian sullivan is off today.

if you're just waking up or heading into work, check out futures right now. they're red across the board dow opening down by 380 points the s&p down by 40 the nasdaq off by 150. believe it or not we were down by implied almost 500 points earlier on this morning. this is an improvement over where we were about 45 minutes or an hour ago the ten-year u.s. treasury note yield dipping again, 2.66% the last trade there two-year at 2.49%. it is a sea of red across the world. weak china data dragging asian markets lower. china's manufacturing activity contracted for the first time in 19 months. as a result the kospi is off by 1.5% shanghai off by 1%. and the hang seng off by 2.75% markets in japan are closed

still in observance of new yearl julianna tatelbaum joins us live from europe with more. >> new year, same story. that's what we're seeing in europe it's a negative day across the board. we're seeing losses nearly to the tune of 2% over in france. across every region stocks are trading lower. those trade sensitive macro sectors are faring worst basic resources, banks and autos are trading significantly lower today. that's on the back of the weak china data we had pmis coming in this morning a bit on the softer side mixed data points there. overall creating what looks like a soggy start to 2019. so far it looks like more of the same to recap what we saw in 2018 in europe, the uk, german and european indices saw their worst

year since 2008. french and italian stocks saw their worst year since 2011. quite a difficult end to the year and now here today a difficult start to the year. dominic? >> julianna tatelbaum, thank you very much for that let's dive deeper into the trade and elsewhere around the world joining me now is david nelson you get the distinction of being our first live air guest in the united states. >> not a warm and fuzzy feeling. >> not at all. let's make sense of this 2018 we know, terrible year for stocks worst since the financial crisis worst december since the depression era this is a new year why the negative start the way we're seeing >> the negative data out of china, showing manufacturing is in contraction for the first time in 19 months. pmi at 49.7. that's what the trigger is last night the futures were in the green.

we are probably looking at a modest positive day to start the year the focus will shift now, it will start to shift towards earnings we're in that time period. we get this bad news and we have the selloff. >> we have a number of things we're watching they've been the themes for 2018 and now 2019 it's the fed and interest rates. it's china trade policy and what's happening with earnings season you mentioned earnings season. china we got the manufacturing data the fed is a factor. as we weigh all of those, in the first two to three months of this year, we'll have developments on all of those fronts how important is it to the markets for that >> very important. it's all the usual suspects. the fed, trade, dysfunction in washington you have a shutdown now. likelihood that nothing will happen legislatively over the next couple of years i'll add one added thing you have a wave of socialism in america today. you had a candidate announce that she wants to change

corporate structure. that's got to strike fear in the hearts and mines of ceos or shareholders >> as we talk about the developments in washington, are they as much of a factor in market sentiment as other ones we know trade is the overriding policy decision now that will affect markets the most. how much of the markets -- in other words, how much of a pop or drop do we get from negative trade headlines versus fed headlines, versus economic headlines? >> the news cycle will drive in the short-term, but in the end stocks follow earnings the biggestconcern i have is estimate revisions have plateaued. if you think the last time earnings rolled over, that was around 2014. lo and behold 2014, 2015 the markets did pretty much nothing. you add all these negative headlines that you mentioned, it starts to weigh on sentiment stocks are implying negative

earnings revisions for next year that's a tern. first up to the plate is the most challenged sector of all, financials >> there's a case to be made that the markets are trading at fairly relative value discounts that we've seen over the past couple of years. >> i think so. just before we had the bounce, we were probably under 16 times trailing earnings. that's a good level of support at 13 times which would imply 2100, i'm basing that on $161 in 2018, extrapolating that forward, 13 times, that gets you to 2093. at that level, at that level there's a huge amount of technical support it happens to be close to where we were on election day of 2016 >> as we talk about the way that things are set up from earnings growth to the overall markets, you said stocks will ultimately follow earnings. as this earnings season comes up -- >> it's critical >> what exactly are you looking for in earnings season given the

outlook for the markets and the overall economy? >> financials are discounting a lot of bad news. that's pretty clear. i think what markets and market practitioners are concerned about is what does this yield curve -- you wonder what is this doing for long growth and on net interest margins if we suffer on net interest margins but long growth is okay, i think we'll be okay >> do you see ten-year yields falling below two-year yields? >> i think the good news is the fed got the memo we all understand -- at least i understand that was a policy mistake that you saw in december when they raised, that was totally unnecessary. and they know it's apolicy mistake because within 24 hours they trotted out on this very network new york fed president williams to walk back the harsh rhetoric and kind of put out a statement we're listening to the message of the markets

>> speaking of listening, if you had one piece of advice, not that the fed is listening to anybody out there besides their own data, what piece of advice would you give fed chair jerome powell and the rest of the fed governors out there heading into 2019 >> slowdown. you have nothing in history to point to this is the end of an experiment the fed has an elevated balance sheet. they would like to get that down so i think the biggest issue is do you want to start a recession to prevent a recession we understand the path of normalization. they have to do this but i think it has to take along l a lot longer oil is well over 40% that's a deflationary force. i don't see the inflation they're worried about. as part of a mindset that goes back to the united states can't sustain anything greater than 2% growth and the whole idea of the

corporate tax cut was to break out of that. if you are slamming on the brakes every time we hit greater than 2%, we will never break out. >> david nelson, thank you very much for joining us. >> thanks for having me on >> you got it. netflix making a big higher from the video game world. frank holland has more on that story. >> good morning. netflix suspected to make it official soon, hiring its new chief financial officer from activision/blizzard. the move for spencer neumann has been described as poechaching in a securities filing on monday, activision said it placed neumann on paid leave and would seek to fire him for cause. he previously worked for disney. he is expected to join netflix sometime early this year and will replace david wells who announced his intention to step down in august netflix has been accused before

of poaching executives still under contract with other companies. it's been sued by viacom and 21st century fox so big shakeup here for two companies that are both in that content space. netflix is down nearly 3% this morning. we're seeing activision blizzard off about 1.7% dom, back over to you. >> an spergintegral part of tha f.a.n.g. trade. shares of gaming stocks today were all down sharply in hong kong on a weaker outlook for revenue in january this comes after the sector last year ended on a strong note. demand continues to rebound following a prolonged slump. but analysts expect revenue this month to be flat and february to be up in the mid to single high single digits, partly due to the timing of the chinese new year

holiday. wynn macau down more than 5% today. we are all over this early morning selloff on this first trading day of 2019. everything you need to have on your radar before the opening bell, that's next. and oil under pressure prices sliding last year, what's in store for the energy markets for the new year and how all the washington buzz could impact your portfolio. stick with us, "worldwide exchange" will be back after this break 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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things are cleared up in times square you're seeing a live shot of times square in new york after the ball has dropped and things are getting back to normal for this first business day of 2019. if you're just waking up, driving into work, check out what's happening with the futures market we're off big. the dow jones would open down by 377 points if these futures losses translate into losses at the opening bell for regular trading. the s&p down by 38 points. the nasdaq off by 145. believe it or not, this is better than we were about an hour and a half ago. on the treasury side that risk-off mentality, that risk aversion playing out there as well we're seeing a bid for treasuries ten-year note yield down to 2.66%. a little bit of stability now to

the two-year treasury note hof hovering below 2.5%. the energy sector in 2018 was down 20%, the fourth negative year out of the last five. crude oil prices this morning also showing some of those signs of risk aversion wti crude off by nearly 1% $45, that's the handle we're on. $45.03 the last trade there. brent crude futures 53.27. that world benchmark gauge off by a percent as well let's bring in john kilduff. john, i cannot emphasize to people how rough it was for oil markets. wti crude lost 40% just from october 3rd through the end of the year is there any end in sight to the carnage in crude >> it's always hard to tell. you have to question right now

whether or not this is the darkest before the dawn. i say that because a couple of things started to happen one of the major factors that tipped over oil so harshly to the down side was a russia production that got put on the market by saudi arabia, russia and this massive increase in u.s. production. now opec has circled the wagon again. wagons so has russia joined in. over the course of 2017 to last october, oil prices steady rose because they maintained a strict production discipline. they were able to bring down global inventories to more normalized levels. we're in that situation again. not only are opec and russia doing this, we had a very large decrease in output in canada of all places steep drop in their rig counts, some 60 rigs, almost a third of it, incredible reaction to the price collapse there the numbers up there are nothing to what we're seeing for wti

like half. $26 area they reacted harshly the other question is now that the independent emp companies in the u.s. greatly affected by this price drop. there wasn't a lot of hedging in place. the blue sky mentality got ahold of these guys again, they didn't hedge forward production as they did in the last cycle when prices went up all of this could combine with otherfactors to stabilize prices 42 bucks, if it holds we should trend higher as 2019 marches on, but we get below 42, there could be more carnage. i would look at a lot of different things including crude oil itself, but major integrated companies, you have to take a look >> we talked on any year's eve on a relative basis exxon and chevron have held up relatively

well compared to other parts of the oil patch. is there a number, an estimate in your mind that crude oil, wti needs to be at generally for the u.s. shale producers to be okay with what's happening? we know the permian has different break evens, that's different than eagle ford aforde balkan where does oil need to be? >> we're sort of in the red zone here i think some of them are starting to get in trouble now when you talk about production costs, well head costs, you add everything in, they need about $50 a barrel to your point on a general basis. now we're below that we get into the 30s, it starts to get really problematic if we were to get back down to the 2016 low of $26 a barrel, there will be a rash of bankruptcies again, another mass reorganization within the industry it will be a tough sled.

i was looking at this over the weekend, there are folks out there, technical analysts who will tell you you can chart anything, any data series. the u.s. production levels have gone par babolic to the upside that screams for a retracement back down. i'm not sure it's sustainable. it wasn't hedged out to any great degree in the futures market a lot of issues facing the industry here for this 2019 period >> john kilduff, you made the call, $42 the level to watch there for crude. still ahead, investing in 2019, the top sectors for your money in this new year that's coming up next. first, shutdown showdown the partial government shutdown still under way. a live report from our nation's capital when we return after this break

that's a live look at our nation's capital right now, 5:22 a.m. eastern time. the first trading day of 2019. we're in day 12 of the partial u.s. government shutdown if you are just waking up or driving into work, check out what's happening with futures. they are pointing to a sharply lower open the dow down by 365 points

the s&p off by 37. the nasdaq off by 135 points that's better than we were about an hour, hour and a half ago in terms of trading we were down by almost 500 points at one point earlier this morning. the partial government shutdown extending into the new year tracie potts joins us now with more on day 12 of this partial government shutdown. >> dom, good morning democrats say when they take over half of congress tomorrow they have a plan to end this but will republicans on the other side go along? it's not clear at all this morning that their plan can actually get people back to work smithsonian museums and the national zoo closed for the first time today as the partial government shutdown continues. it's a showdown over president trump's border wall with mexico. democrats refuse to give him $5 billion to build it. >> this is all a crisis that the

president has manufactured he's dragging republicans into it >> reporter: today he's inviting top republicans and democrats to the white house for a briefing on the wall. democrats fear it's a stunt and doubt the president is ready to negotiate. they're planning a vote as soon as they take over the house tomorrow >> the house will be in order. >> reporter: they have two plans, both would reopen the government, neither would fund the wall >> the burden will be on the republicans. the democrats will have acted. >> reporter: the senate still controlled by republicans is unlikely to send president trump something he won't sign. >> the only thing that matters, the only thing is what president trump and leader schumer can agree to. >> reporter: that's chuck schumer. let's make a deal the president tweets to incoming house speaker nancy pelosi it's not clear what that deal might be also in a new op-ed in the "washington post," incoming republican senator mitt romney slamming the president's character saying he has not risen to the mantle of the

office romney and others will be sworn in tomorrow tasked with trying to get this government back open >> trying to get a deal done on the government shutdown, tracie potts, thank you very much for that. let's check the other top headlines. frances rivera has those details. good morning we start off with cold war tensions heating back up between the united states and russia after a marine corps veteran was arrested last week in moscow on spy charges. paul whelan was last seen giving a tour of the kremlin. the 48-year-old brother's twin spoke out insisting he's innocent if found guilty, he could face up to 20 years in prison. incoming utah senator mitt romney is not pulling punches with president trump in a new op-ed in the "washington post" the former republican presidential nominee argued the current president has not risen to the mantle of the

office pointing to the glowing political divide in the country and tensions flair along the u.s. mexico border u.s. customs and border attention say they launched the gas to stop dozens from crossing into the united states they also say some in the group were violent and throwing rocks. no reports of any serious injuries those are your news headlines. >> thank you very much for those headlines. we are all over this early morning selloff in stocks. a full global market rundown is coming up next plus lotto fever a single winner taking home the mega millions jackpot overnight. l llou how much they got next

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the countdown is on. we're about four hours away from the opening bell on wall street. stocks are pointing to a very low open here for the first trading day of 2019. coming up, how you can navigate the market volatility. you're watching "worldwide exchange" on cnbc. good morning welcome to "worldwide exchange." i'm dominic chu. brian sullivan is off today. futures pointing to a sharply lower open the dow off by 395 points. the s&p 40 points to the down side the nasdaq off by 145 points

let's check on the top business headlines outside of just the markets. frank holland has those. netflix is reportedly expected to name activision blizzard cfo spencer neumann as its new chief financial officer. on monday activision blizzard said in a regulatory filing they intended to fire neumann for an unspecified reason. gambling revenue in macau rising 14% in 2018, the second consecutive year of gains. still chinese gaming stocks were all down sharply in hong kong on a weaker outlook for revenue in january. we're on fed watch this week or fed watch again. jay powell will have the chance to comment on his economic outlook. he will take part in a joint discussion with janet yellen and ben bernanke this friday >> frank holland, thank you very much for those updates

let's check the early market action we're in selloff mode. futures now pointing to a 400-point drop for the dow jones industrial average just about 41 points for the s&p. and the nasdaq off by 149 points now, as we mentioned before, this is bad, but it was worse at one point earlier on this morning during early trading for s&p and dow mini futures on the treasury side of things, we're seeing a flight to safety. bids for u.s. treasury notes on the ten-year side of things have pushed yields down to 2.66%. two-year treasury note yields showing signs of stabilization, that one speck of green, 2.5%, just a hair below that for the last trade of government note yields. weak data out of china dragging asian markets lower a private sector survey showing china's manufacturing activity contracted for the first time in

19 months. as a result the kospi in south korea off by 1.5%. the shanghai composite off by 1% the hang seng off by almost 2.75%, almost 3% let's check now on the action in europe as well julianna tatelbaum joins us with more on that it's red there as well, julianna >> it certainly is that weak handle from asia is not helping investor sentiment european markets have been open for about 2 1/2 hours now. as you can see across the board the losses are fairly steep. the french index is down about 2% the italian index, the ftse mib is down nearly 2%. quite a weak start to 2019 really more of the same, picking up where we left off in 2018 to put some of these moves into context for 2018, we saw the ftse 100, the uk index, the dax,

the main german index and the stoxx 600, the overall european index all post their worst performance since 2008 the italian index and the french index saw their worst year since 2011 so we are seeing a weak handover from 2018 to 2019. now a also a weak handover from asia and that is weighing on investor sentiment here. china a big part of those export driven economies in europe beyond the china data, we had a raft of pmi data in europe which painted a soft picture for the start of 2019. a real continuation of what we saw in the last quarter of 2018. so those december pmis finalized today showing a fairly mixed picture, in particular weakness in france. that's contributing to that under-performance we saw there overall, 2 1/2 hours into 2019, it's a negative started for europe dom? >> one point for you, julianna as we talk about trading in europe, how much of this do

traders attribute or are you getting the sense of is it because of the abbreviated session we had on new year's eve and even market holidays across many major bourses, how much of this is perceived as a catch up trade because we didn't have as much trading activity or liquidity in the final couple days of trading in europe? >> yes certainly many markets were closed on newier's eve ieyear' europe this is a bit of a catch-up trade, but there's nothing we heard to materially change the view that we saw going out of 2018 it's a cautious tone here in europe, talking to analysts and fund managers on the show this morning, investors are largely in wait and see mode a huge number of outstanding issues carried over from 2018 into 2019. brexit, u.s./china trade spat, broader economic slowdown across europe and china a huge number of issues remain

outstanding. here today this surely is a reflection of that cautiousness as we head into the new year >> one more point here as we talk about those items you listed as being points of observation or things that traders will be watching, what will be key on the agenda for big policymakers in the next couple of weeks? i look at the european central bank, the bank of england. where what are the things they'll be watching aside from that softer-ish hymn dapmi data >> the fed is also a huge factor on what's happening here in europe european investors watching u.s. policy when it comes to the monetary policy. the big political event will come in may. european parliamentary elections. there's some risk into that as we've seen the rise of populist parties across europe. brexit is the key event in the

uk in france we hended the year with the yellow vests taking focus. investors are be watching to see how that continues to unfold, far from being resolved. lastly just flagging italy we saw budget resolution calm that was a key issue for italy throughout q4. the dispute between the italian government and the european commission we did see resolution there. but as we've seen time and time again with italy, it is rarely the end of the road. certainly plenty to watch in jo very much for that time for the top trending stories. frank holland has those.

frank? >> happy new year. one trend that is continuing you and i not winning the mega millions >> i'm still here. i would still be here if i won i would say that >> it's a great place to get investment advice. >> one lucky winner is starting off 2019 4$425 million richer. just a single winning ticket was sold for the new year's day drawing. that lucky ticket was sold in long island, new york. the winner can select the annuity or cash payout of 254.6 million. >> that is a lot of money. i want to say it's rare, but i'm so used to seeing these winners come from outside of the tri-state area maybe i have some renewed faith in buying tickets. it's really half that much money if you live in the new york

area. a massachusetts man said he bit into a chipotle burrito and chipped his tooth on a nail. he bit into his burrito and found a half inch long nail inside his burrito the restaurant says they will do a full investigation of the incident multiple locations have had food safety issues leading to customer illnesses like e. coli and neurovirus >> chipotle is one of those companies that you really love or stay away from. the pr issues have been a part of that. management will have a tough time trying to revamp their image. they brought in a top executive from a competing chain >> maybe even some price cuts on the way. we have a new series on trending, college football

calamity american football. big thing here on new year's day. there was a bit of a scare at the rose parade in california where a float caught on fire this is a tradition, these floats with the flowers on them. it happenedon the harmony through union float. crews took it off the route for the remainder of the parade. fiest fiesta's floats blamed an electrical issue for the fire. they said the float was shut down as a safety precaution. talk about just bad news there probably one 069d most watched parades on new years being out there and seeing the rose parade and all the pageantry that goes along with it and there was nearly a disaster in an attempted pregame

photo-op with live mascots texas' bevo, a 1600 pound bull knocked down the metal and surrounded towards uga, the bulldog. a slight size disparity. bystanders scattered before they pulled back the steer. all the spectators were unarmed. >> i'm not sure which iteration of uga we're on now. uga has had -- dogs have a life span like human beings do. uga has been a mascot for years now. maybe georgia fans can tell me which uga this one is. >> i'm glad we still have this uga, his run almost came to an end if that steer got loose. >> thank you very much, frank holland. let's check futures. futures pointing to a sharp drop for the opening bell the dow off by 405 points. if you look at the s&p 500, we

would be slated to open down by 42 points. the nasdaq off by 160 points coming up, new year, same washington worries the top factors every investor needs to have on their radar your 2019 political playbook is coming up next. as we head out to break a look at dow winners and losers stick with us. "worldwide exchange" will be right back after this break. [knocking] ♪ ♪ memories. what we deliver by delivering.

all right. that's a live shot of chicago, illinois right now 4:43 a.m. central time streets there emptier than they are in new york city if you're just waking up, one of those folks driving in on those city streets, look at futures now. the dow slated to open down 400 points if these losses in futures carry over into regular trading of u.s. cash markets you can see the s&p off by 41 points the nasdaq down by 154 points. it is day 12 of the partial u.s. government shutdown, with more agencies including the smithsonian running out of money and closing their doors. the democrats get set to take control of the house later on thursday let's discuss all of this

with daniel litman thank you for joining us let's talk about this particular move here. how much of this at least meeting or possible negotiation this afternoon can lead into some kind of meaningful development on ending the partial u.s. government shutdown >> it's a critical step for them to actually get back in the room remember, trump was criticizing nancy pelosi for being in hawaii during the government shutdown and the holiday. there's been no progress in the last 12 days that this shutdown has been happening there's real world consequences that americans are facing in terms of the epa, the faa, they are getting hit. the irs, they can't train their workers to be able to adapt to the new tax law. so trump is viewing this as an opportunity to end the shutdown which he himself in that last meeting with pelosi and schumer

said he would be happy for them to call it the trump shutdown. he's been trying to shift the blame to the schumer shutdown, but most republicans have not been joining him in that effort. >> take us through the play by play what happens you to in the next couple of days as we head into thursday when the democrats take control of the house what will come out in terms of events or milestones in the next couple of days, not just on the shutdown but policy overall? >> pelosi becomes speaker tomorrow as they formally swears everyone in in terms of u.s. house of representatives. and then they're going to pass this bill to fund the government and mcconnell is expected to reject it. what he's waiting for is a signal from president trump to give political cover to all those republicans who have said it has to have x amount of border wall money. so if trump wants to end this

shutdown, he can do so pretty much immediately republicans then will pass whatever is passed in the house. so that's what everyone was watching this is disrupting what democrats had wanted to talk about, which is infrastructure, healthcare, holding trump accountable. instead they have to clean up last year's mess >> dan, how much of the overall feel in washington right now with regard to ending this partial government shutdown is tied to border security? is there any give that you see president trump or the republicans in congress giving on the border security front to help get a deal done on this government shutdown? >> i think border security money will be part of it but republicans will likely claim that is it for a wall. democrats will say, well, it's for fencing and overall security measu measures we're looking at 1$1.3 billion i

terms of allocating that money to help solve our border problem. this is a landmark issue for democrats. they view themselves as the whippers from the mwhip e winners from the midterms. how much is the border wall going to be a signature of president trump's policy in his first years as president of the united states? how important is it to him to have this border wall done >> it's very important because he views it as an issue that if he can't get it resolved in his favor, then his political base may abandon him in 2020. it's already going to be harder for him to get moderate republicans. you saw mitt romney's anti-trump op-ed in the "washington post" overnight.

independents for him to vote for him in 2020. so if he loses his base, it could be a huge rout in 2020 by whoever is the democratic challenger so trump views this as an existential issue. he doesn't criticize pelosi during their negotiations or on twitter. he has not given her a nickname. pelosi used to trek up to trump tower to beg trump to know date to him when he was a democrat. that's something they don't talk about. >> there's a lot they don't talk about and stuff they do behind closed doors as well dan, thank you very much for that update. >> we are all over this global market selloff futures pointing to a sharply lower open the key things that you need to be watching ahead of the first opening bell of 2019, stick with orwi eha "wlddexcnge" will be back after this.

you're looking at the 30 rock christmas tree. it's still up for a little while longer the first official business day for 2019 in new york city. futures pointing to a lower open, down about 383 points. at one point earlier this morning the dow was indicated to open down by almost 500 points so we're better than we were. joining me is kathy lee and silvia jablonski from direction investments. thank you for joining us kathy, how much of mentality for risk aversion is due to 2018 and we will not start off the new year on this

note >> it is just a carryover from the risk aversion that we saw. 2019 is rife with risk we not only have volatility rising, clear slowdown in the u.s. economy, the chinese economy. earnings are starting to suffer. i think a lot of that will cause additional losses in the financial markets. >> silvia, the types of etfs that folks use to trade are put out by other companies how much of this trading action was due to technical reasons around tax loss harvesting or anything else? did you see anything sector specific that would indicate that people were trying to reposition themselves going into 2019 >> was definitely some repositioning and rebalancing

into year end. 2018 was -- or 2017 was such a great year the beginning of 2018 through september was a very solid year. we saw stocks pull back in november and december. you know, you certainly had pension funds, large family offices taking some gains and locking them in in terms of preparing for volatility towards the end of the year. we have seen traders looking for short-term tactical opportunities. in the last couple of weeks with these up and down swings, opportunities have popped up for traders. >> where are those opportunities, silvia? where are you seeing the action? >> we've been seeing the action prior to this morning's dismal open here, you know, for the last few days funds have been flowing into emerging markets. week weak pmi data, potential gdp growth in china, they're

predicting some desecent gdp growth healthcare has been good cash heavy names aging population, strong m&a activity, strong fda approvals that sector has been poised to grow a lot of our clients and investors out there are just looking for more diversified portfolios so consumer staples. things that have persistent demand and consistent dividend growth are on the top of the list for traders >> kathy, i'm a former currency guy, many of our viewers know that so i watch dollar/yen closely. 1.09, that's the handle we're on now. 1.0908 at one point in the beginning of october, we were push 1ing 1.14 how much are traders watching the yen for what's to come in 2019 >> i think the yen is one of the currencies that has the greatest opportunity in 2019.

we're around 1.09 in dollar/yen. we'll easily see 1.05, maybe 1.03 we could see further down side in the markets in risk appetite. all of that will weigh heavily on japan japan, you're starting to see some green chutes. a lot of it has to do with the market risk appetite, but dollar/yen is an attractive trade. >> very much an opportunity for some traders out there, and a risk gain. thank you both for joining us this morning that does it for "worldwide exchange." let's get a check on those futures. dow jones off by 382 points. the s&p off by 39, 40 points the nasdaq off by 153 points this is off the worst levels of the session so far today

traders will have a lot of red to contend with this morning on this first trading day of 2019 that does it for us on "worldwide exchange. "squawk box" picks up coverage next 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.

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u.s. futures pointing to a sharply lower open as investors ring in 2019. world markets are the reason, big reason weak economic data out of china. and a government shutdown, new congress, trade war, much more we'll bring you a live report from the nation's capital on the biggest political issues investors need to watch. it's wednesday, january 2, 2019, "squawk box" begins right now.

♪ live from new york where business never sleeps, this is "squawk box. good morning, everybody. welcome to "squawk box" here on cnbc live from the nasdaq market site in times square i'm becky quick along with joe kernen and mike santoli. andrew is off today. our top story is the global market selloff futures this morning pointing to a sharply lower open so happy new year, clean slate, here we go again dow futures are indicated down by over 400 points s&p futures down by 42 points. the nasdaq is down by 161 points the big catalyst overnight, weak economic data out of china a private survey on the manufacturing sector showing factory activity contracted in december that's the first time that's happened in 19 months. the downturn in china comes amid the u.s./china trade fight th