a friday rebound wall street pointing to a big pop at the open following yesterday's major selloff. japan slammed. the nikkei tumbling as it reopens for the first time in this new year. and countdown to jobs. we are just hours away from the december jobs report we will break down the key numbers to watch it's friday, january 4th, 2019, "worldwide exchange" begins right now. ♪ good morning happy friday welcome to "worldwide exchange." i'm dominic chu.

brian sullivan is off today. if you're just waking up, let's get you up to speed on what's happening right now following yesterday's major selloff on wall street. as you can see, the dow jones would point to a 250-point rise at the open if these pre-market gains hold into the opening bell the s&p up by 29 points. the nasdaq up by 97. we have some big breaking news out of china just the past few moments. china's central bank cutting reserve requirements for its lenders by 100 basis points, that's 1%. it will be done in two different tranches let's check on those asian shares from the overnight session. the nikkei off by 2% this is the first time that they have opened for trading since the new year holiday the hang seng up by 2% the shanghai up by 2%. on perhaps some optimism around trade talks kicking off between the u.s. and china into next

week looking at europe, the positivity also there as well. the european trade predominantly green into the strong side the dax up by 1.5% the cac in france up by 1% ftse 100 in the uk, 1% gain as well as for the broader markets, oil catching a bid again we can see wti crude up by 2%. $48. that figure right there on the euro gold off marginally bitcoin prices, 3,778 let's bring in james liu to go over these themes. let's start with the reserve ratio requirement cut by the central bank in china.

this is something that a command and control economy in government can do to stimulate its economy that doesn't necessarily happen with an independent central bank like the fed. what does this signal about what thin fe china feels about their own economy, the fact they're cutting interest rates >> it is a centrally controlled economy. so they can implement these stimulus measures. the context here is that we've been talking about hard landing or soft landing in china for eight years now. we know they've been slowing down we've seen that not just in the government reported numbers, but also in other indices. if you think back to what happened in 2015/2016, when with that last bout of big volatility we thought china would hit a hard landing, you had a lot of stimulus come out of the chinese government at that time. this is very much in their playbook the broader picture is if investors and economists thought that central banks would kind of

go quietly into the night in terms of tapering down stimulus, that's not the case. central banks are still very relevant here. we're talking about the fed every day. you know, the pboc is still very much a factor. it will be a process before we can unwind a lot of stimulus that's happened. >> how important -- the chinese economy or the perception of us slowing, maybe not even perception but data showing a slowdown in the chinese economy s that what's driving the market volatility over the past couple of weeks into 2019 it was concern about the fed and rates for a while earlier this fall t seems like it shifted a bit to emphasize the chinese economy situation. this is true yesterday with apple as you point out the issue with the chinese economy, it's really just one piece of the puzzle. the global economy unfortunately does look like it is losing

steam. that's true not just in china but the rest of the emerging markets, developed markets and in the u.s we had that ism report that showed things were decelerating. that's the bad news. the market is in the right direction in terms of how it's perceiving that. the good news is that we think the market is overreacting here. things are decelerating but we're not in negative territory in terms of growth rates by any stretch of the imagination things like the yield curve inverting, the yield curve has not inverted people are worried about the fed overtightening the fed has not overtightened. the market seems to be directionally correct, but we're not yet in negative territory. >> given that scenario that you have laid out, what exactly is the strategy prices have come down markedly over the past few months what is the strategy then? how do you position yourselves to benefit or play defense against some of those outcomes that you're talking about?

>> is it a difficult market environment. you're seeing a lot of volatility big swings every day the best strategy is to stay balanced we're later in the cycle no doubt about that. the fact we're decelerating is a symptom of the fact that we're in the tenth year of both a bull market and the economic expansion. we still think that if earnings growth can continue, even at 5%, 6%, 7% pace, we can still see decent returns in 2019 both in the u.s. and abroad. we would urge investors, especially every-day investors to stay balanced in this environment and basically take that market volatility and in perspective. >> james liu, thank you very much apple shares are hovering near the flat line this morning after the stock posted its worst day in six years yesterday the company slashing revenue guidancesending apple down

nearly 10% that drop has many investors asking is this the perfect buying opportunity or should i stay away from those apple shares joining me now is david garrity. thank you very much for joining us you know apple you covered them for a long time you know their story are things as bad as the market dictated yesterday for apple stock? >> the issue we're running up against is the fact that we had the iphone that came out, launched in 2002007 we had 12 years roughly of prosperi prosperity, we got the point where we have saturation in the market and apple's product, even though still leading in terms of customer satisfaction has moved out of the range of affordability such that replacement cycles are slowing even though tim cook has done a great job with apple and building up noniphone businesses, it's still the iphone that rules the roost at

apple. until such time as we get clarity to see what resumed growth there will be in the iphone, the stock will continue to tread water >> tread water is one thing. the steep declines that we've seen, it's almost 40% from the peaks that we've seen for some of those apple shares. this move lower that we've seen in apple is because of that pessimism or less optimism about the iphone yesterday's -- or two days ago the pre-release of that data coming out, if you look at it, there were a couple main concerns slowing iphone demand, that secular growth slowdown with smartphones, as opposed to the china slowdown as far as the economy. which is the bigger weight right now on apple a slowdown in its product or a slowdown in one of its bigger markets? >> i would think the slowdown to the product itself

they may point to china being the third largest market globally, the fact remains if apple is going to be successful in growing iphone unit volumes going forward t has to shgforwan emerging markets like india. and in end india, a $700 phone n welcomed is far less than in china where incomes are higher >> some illusions have been made about prior smartphone giants and what they're doing today so is apple the next nokia or blackberry >> i would say apple certainly has a well enough entrenched presence in peoples lives from a technology standpoint. if we look at the macbook franchise. look at their other products i don't think we're going to see apple go the way of the likes of a nokia or a palm or a blackberry

so clearly anybody who has those kinds of concerns are certainly overblown. the fact remains we look at apple as a stock, almost 40% or plus off of its highs. could we see it refrench back to a level of 115, 125 a share before all is said and done? yeah most likely. most of the damage has been done here that said, we do need to have a clear indication from management as to what their growth plans are going forward before people, i think, start to pile in and see this company as being the tech sector bellwetherthat it has been over the course of the stock market cycle off the march 2009 lows. >> all right david garrity, thanks for those thoughts square tapping amrita ahuja to be its new chief financial officer. she replaces sarah fryer who announced she was leaving her

post in october. shares are up by 2.75% in extended hours trade. we are getting a fresh read on the health of the u.s. auto market as well let's get to frank holland with those details. auto sales held steady last year defying forecasts of a downturn the industry sold about 17.3 million cars, trucks and suvs i 2018 it marks the fourth straight year sales topped 17 million, the best four-year stretch in u.s. history the numbers at the end of 2018 were soft. numb the country's best selling truck, the f-150, was down gm only reports quarterly numbers. fiat chrysler had sales rising 14% in december and 9% for the year auto executives still expect the

industry to face a number of headw d headwinds in 2019 including rising interest rates and higher sticker prices one bright spot is gas prices lowering, which could be big for pickup trucks and suvs. turning to the wall street agenda it's all about the fed and the economy. we kick things off, 8:00 a.m. eastern time with a first on cnbc interview with cleveland fed president, loretta mester, that's followed by the jobs report at 8:30 a.m. eastern time wall street looking for an increase of 176,000 jobs last month. the unemployment rate to tick down to 3.6% then later on this morning, we'll hear from fed chair jay powell he is sitting down with former fet chief fed chiefs janet yellen and ben bernanke in atlanta. we'll have live coverage starting at 10:00 a.m. eastern time. later on this afternoon,

we'll hear from the chairman of the council of economic advisers, kevin hassett, he joins us live at 2:00 p.m. eastern time it is a packed day keep it here on cnbc coming up on the show, the china factor more on that big news crossing just this past hour. china cutting its reserve requirements as fears mount of a major economic slowdown over there. so just how bad are things in china? we'll get an expert's take and doubling down, president trump digs in on a border wall as the government shutdown enters its second week we're live in washington with those details enwh "worldwide exchange" returns after this break. ♪

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included with your internet. plus, get $200 back when you when you buy a new smartphone. xfinity mobile. it's simple. easy. awesome. click, call or visit a store today. that is times square in new york city where "squawk box" is probably getting ready for the 6:00 a.m. eastern time hour. it's still 5:16 here, that means "worldwide exchange" is still on duty new yorkers getting ready for a big friday here, wrapping up the first week of the new year if you are just waking up or in one of those cars heading into work, check out the futures right now.slated for a solidly higher open after yesterday's selloff. the dow jones scheduled to open up about 260 points. the s&p up by 30 points. the nasdaq up by 100 points. the european trade positive

there as well. we are right near the best levels of the session. the dax up by 1.5% the ftse 100 up by 1%. similar percentage gain in the cac in fransz. japan has opened for the first time in the new year, it's down by 2.25% for the day. the hang seng in hong kong and also in china, up on some optimism about possibly trade talks starting up on monday. sticking with that china trade, we just got word in the past few moments that the country's central bank, the peoples bank of china, will cut its rezf ser requirements by 100 basis points, 1%, as the government looks to counter risks to a sho sharper slowdown let's talk more about that move with miranda carr.

she joins us from london thank you very much. this was a big deal for one of the biggest central banks with big influence out there. tell us what your thoughts are initially about why they did it. we kind of have an idea. >> the cut was widely expected to come in january or q1 a lot of it is offsetting some previous lending facilities and easing done over the past year the fact it's done 1% across the board, and also it's done it this early is an indication of the need to boost the economy as we come into sort of pre-spring festival and tight liquidity this is a more positive thing. it was expected, but a more positive move than we thought. >> is this the first of possibly more steps to come from the peoples bank of china given the outlook that we've seen from companies like apple, also some pmi data we've been seeing out of china >> yeah.

the interesting thing is that they cut the reserve requirement. they can do more reserve requirement ratios they're still relatively high. they were 14.5 they could go below 10 quite easily where they face pressure is on the interest rates that will effect the u.s. dollar and the capital outflows so it's china who will struggle to cut interest rates. they're trying to boost more liquidity, give the banks more lending room and that will be its key monetary policy tool for the first half at least. >> miranda, let's talk about the domestic policies outside of the central bank and monetary side of things. what is the chinese government looking to do what can they do from a fiscal standpoint or a government oversight standpoint to get things moving for this economy? is this a situation where they're trying to engineer a soft landing as much as they can? >> well, the interesting thing is the key slowdown last year

was not the trade war despite the rhetoric but actually the de-leveraging, the domestic de-leveraging that sucked money out of the shadow banking sector and out of consumers pockets as well. the fact they moved to a monetary easing stance basically, loosening that, you have a key drag on the economy lifting as we come into 2019 obviously this will try to offset the big drag, which will come in q1 from the effect of the trade war. because suddenly you'll see having the front end loaded coming into q4 for the export growth, it's probably going to be really, really week in q1, possibly into q2 as well that's reflected in the big price falls you see in the domestic economy across the commodity sector and also sort of other areas >> miranda you opened the door for this one here. you talked about those trade talks.

they're expected to kick off at a high level with deputies on both sides coming together next week what do you think will happen out of this and what could we expect to see from both sides with regard to progress on talks? >> the interesting thing is china's made some significant shifts there's not been big headlines on this. a lot of reforms, opening up foreign investment, they did a big announcement on changing foreign investment on the 25th of december when all the rest of the western markets were celebrating. so there's been reform announcements to open up markets and give some more leeway to sort of the foreign and do more with intellectual property the key issue is when the meeting with lighthizer occurs if those talks proceed, we could see a positive read across that is top-level agreement. without that kind of strength in

the talks, then there's a risk that we could end up with a truce that then goes on much further into 2019. >> markets will be sensitive to those trade headlines, that's for sure coming up on deck, self-driving delivery. one major car company is one step closer to bringing you dinner without a delivery person those details ahead. first, the shutdown standoff everyone from washington to wall street eyeing the draman c. 'rli iour nation's capital when "worldwide exchange" returns. investors

eye on washington as a partial government shutdown enters its second week. tracie potts has the latest. >> there's another meeting happening at the white house today between democrats, republicans and president trump. but with no one budging on the big issue, money for this border wall, it's not clear if that meeting will achieve anything or really where the negotiating even begins. today's white house meeting is the latest attempt to break the gridlock over president trump's demand for taxpayers to put a down payment on the border wall he said mexico would pay for >> i have never had so much support as i have in the last week over my stance for border

skurtd tich security >> he's going head to head with nancy pelosi who refuses to pay for the wall she says it is immoral >> this is not a wall between mexico and the united states that the president is creating here it's a wall between reality and his constituents >> the bill is passed. >> reporter: last night the new democratic house of representatives approved a plan to reopen the government, but with no money for the wall, republicans in the senate who passed something similar last fall now refuse to consider it >> i would call it political theater, not productive lawmaking. >> reporter: right now that wall is the only thing standing between 800,000 federal employees and their pay. >> 800,000 people who have been put at risk who are worrying about whether they'll get a paycheck next week. >> reporter: president trump tweets this is strictly politics by democrats hoping to get an edge on the 2020 election. separately today democrats are

introducing reforms that they say will take the money out of politics, and clearly there are politics at play here. certainly the focus is nearly 1 million people who need their paychecks and millions more who are not getting government services, and that's going to get worse as the shutdown continues. >> day 14, thank you very much, tracie potts the business community is mourning the loss of a major pioneer in the airline industry. herb kelleher, former ceo of southwest airlines passed away on thursday. he changed the airline industry creating a low-fare carrier that made travel more accessible to the masses today southwest carries more passengers within the united states than any other airline. reaction is pouring in this morning from some of the biggest names in business from former dallas federal reserve president richard fisher saying herb was a legendary business leader, civic titan and most importantly an

a a a ardent defender of the federal reserve system and its independence herb kelleher was 87 years old we'll be right back. .. 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. (danny) after a long day of hard work... ...you have to do more work? (vo) automatically sort your expenses and save over 40 hours a month.

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wall street pointing to a big jump at the opening following yesterday's major selloff but will the early morning gains hold we'll dig into that trade straight ahead. breaking news out of china that nation's central bank cutting its reserve requirements as fears grow about an economic slowdown the full details ahead and the countdown is on. we are just three hours away from the december jobs reports the key numbers you need to watch. it's friday, january 4, 2019 you are watching "worldwide exchange" on cnbc. ♪ good morning happy friday welcome to "worldwide exchange." i'm dominic chu. brian sullivan is off today. >> 2018 was a tough year for activist hedge fund manager dan

loeb sources say his firm, third point, lost about 6% in december, bringing its yearly loss to about 11%. prior to last year loeb nearly doubled the s&p 500's return for more than two decades. and square tapping a new cfo. she replaces sarah fryer who announced she was leaving back in october. and general motors is getting into the foot delivery business they're teaming up with door dash to test driverless activity for meal and food deliveries it will begin this year in the san francisco area >> thank you very much for those headlines. let's check on the other top headlines outside the world of business frances rivera has those good morning we start with a tragic story near houston three young children were killed in a shooting in texas city. authorities say when they

arrived at apartment, officers found three young children and a woman with a gunshot wound to her hoead. a man has been taken into custody and is a person of interest in the shooting. the death toll rises to seven after a fiery crash in gainesville, florida the crash involved two tractor trailers, a mid-sized sedan and a van carrying children. many people were hospitalized with critical injuries emergency crews said they were treating the crash as a homicide investigation. and incalifornia, a u.s. aviation company has become the first after flying two 12 packs close together pilots can fly at speeds of up to 200 miles per hour pulling off close proximity maneuvers.

the company says they hope to officially set up jet pack races this year. i imagine they need more than that helmet and suit to protect them >> reminds me of the jetsons cartoons >> exactly >> thank you so much for those headlines. let's get up to speed on the markets this morning following yesterday's large selloff. the dow would open up by 250 points if these futures gains carry over the s&p up by 30 points. the nasdaq up by 100 apple, a very large driver behind yesterday's selloff those shares right now currently up by 1.5% $144.48 the last trade there after its worst day in six years. we're seeing movement on the ten-year u.s. treasury note, that yield at 2.602%, and

five-year note at 2.42%. asia right now, you can see there, japan did fall a bit, but other major markets, the hang seng and the shanghai, both up by by 2.5%. and china within the last hour cutting its reserve bank requirements, a move that is looking to sure up the economy and also on the european side of things, that positivity is carrying over there as well. the dax up by 1.5% the cac in france and the ftse 100 up by a pe sent as welrcent. let's bring in jurrien timmer. can we start with the peoples bank of china action this is something that some expert s are saying is expected how important is this to the overall macro picture that the pboc is cutting one of their key

interest rates >> one of the stories for this cycle has been the u.s. slowing down from fiscal stimulus, the fed, how far will it go. china has been a very big story in the background. we all think about it in terms of the trade tensions. the chinese economy has slowed a lot. and they are limited in terms of what they can do to stimulate, fiscally, monetarily, we have this whole thing about the impossible trinity if your currencies are linked, you're limited by how much you can ease monetarily if the other country you're linked to is tightening so china has been in a tough spot in terms of not being able to get a lot of multiplier effects out of its economic and monetary stimulus. probably the best gift that the chinese can get now is obviously on trade, if trade talks do lead

to something but really the best gift is for the fed to hold off. i doubt the fed will ease any time soon. it probably will just sort of go on a long pause here and that will give the chinese government really some more breathing room to kind of get things going on their side i think this triple r cut is not a coincidence that it's happening as the market is expecting far less from the fed. the market is now pricing in rate cuts from the fed so the timing makes sense from that perspective >> is it fair to say that with central bank actions now or the perceptions by markets that our own central bank in the united states will hold off, does that make the macro picture better or worse in your mind >> i think it makes it better. the markets, the way i look at valuation, the markets are driven by earnings and interest rates or earnings and liquidity conditions we know earnings growth is

slowing. it was 24% in 2018 the consensus now is for about 8.4% in 2019 that number will probably come down because it tends to come down any way over time my best guest is around 5% maybe there's even some downside risk to that 56 whafter what we with the pmi yesterday falling quite a bit. a lot of economists will kind of plug that into their models and say earnings growth may be closer to zero i'm not ready to go there. but that's one part driving the markets. the other part is the liquidity environment. if the fed is overly restrictive in its policy, that's a negative and i'm not -- i don't think that the fed is overly restrictive here, but whether the fed presses ahe and keeps raising rates or continues to run down its balance sheet even though the markets are screaming don't do it, that has an impact. so if the fed decides to pause, i doubt it's going to ease any

time soon. though actually historically speaking the first ease comes fairly quickly after the last tightening it wouldn't be unprecedented what the fed does here on the balance sheet side and on guiding the markets in terms of rate policy is a very important input, especially now where where don't get that automatic benefit from accelerating earnings growth. earnings growth is now decelerating >> let's key on that for a second earnings growth is decelerating. we've seen evaluations for u.s. markets and prices for u.s. markets come down over the course of the past few months. does that mean the u.s. is an attractive stock market to be in relative to others >> i think so. you know, it all comes down to the value proposition as an investor of what does the stock market offer when we're at times where there is less uncertainty, investors generally are willing to bid up for each dollar of earnings through a higher pe.

back in january when there was perceived less uncertainty, the trailing p was 22 times earnings, today it's at 15 so a significa significant de-rating valuation. so we don't know what the fed will do, how much earnings growth will slow, but we're getting a 14, 15 multiple for each dollar of earnings. to me that seems like fair compensation for an increased amount of uncertainty, especially considering that inflation remains very stable and low at 2%. if you take the rule of 20, which is just a rule of thumb, if you take 20 minus the inflation rate you get historically where the pe has tended to be on average. that would argue that we should be at an 18 multiple and instead at a 14 to 15, depending on whether you're using trailing or forward earnings pes are down 28% from the highs

in january to me, that's fair compensation for a more cloudy outlook. >> jurrien timmer, thank you very much for joining us this morning. coming up next, where the jobs are we're breaking down what's in store for the labor market in 2019 as we countdown to that all-important granddaddy of them all, the jobs report, the monthly one from the labor department first sparks hit the stage an iconic love story is headed to broadway. it's sure to have everyone in the office buzzing this rng.moin we'll discuss when "worldwide exchange" returns after this

what you're seeing there is a live shot of chicago, illinois it's 4:44, just about central time that christmas tree looks like the lights are starting to come down if you're waiting, the christmas spirit is starting to fade into the new year check out what's happening with futures the dow slated to open up by 250 points, now 277 points an acceleration to the upside. s&p by 3 points. the nasdaq up by 108 points. the big wildcard will be the 8:30 a.m. eastern time monthly jobs report. time for the top trending stories. frank holland has those trends >> looking at a possible

turnaround for the market the a markets and for a big hollywood star kevin hart said he is reconsidering hosting the oscars he told ellen is he evaluating his decision the film academy moved up the s oscar ceremony to february 24th given producers very little time to find a replacement. >> they don't have one this is not an easy gig to fill. >> not at all. i have two thoughts. he shouldn't do it if people are upset, it's their night. it's the academy's night, why bring in somebody who will distract people. for kevin hart, you apologized, people didn't accept it, you're not sure if you're not sure about something, walk away >> markets don't like uncertainty, neither should kevin hart. the notebook is coming to broadway the novel turned blockbuster

film will be adapted as a new musical. it's the latest hollywood film to get the broadway treatment. it now joins the ranks of "mean girls" and pretty woman. no word on when it will hit the great white way. >> frank is saying this because i have never once read or seen any nicholas sparks movie or book >> right >> which is lending some in our control room and elsewhere to say why doesn't your wife get you into some of these things. >> exactly >> my wife megan f you're wat, i will watch nicholas sparks if you want me to this is pretty good. buddhist monks are trending. a monk in japan was ticketed for driving his war wearing his ritual roaric

ritual robe. the police say the robe created a driving hazard we have a monk here with a li t lightsab lightsaber they're posting videos of jumping, doing other things in ceremonial garb. he has the good lightsaber color also >> when they go before the judge, this will be exhibit "a," "b," "c. >> i've been to traffic court, no matter what you say, just pay that ticket. >> wait for the officer not to show up. >> prayer emoji. >> frank holland, thank you very much. the count john is on to the big jobs report. we're breaking down the key numbers to watch when "worldwide exchange" returns.

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futures now. we'll be in the green to start if these gains hold. the dow jones up by 269 points s&p up by 31 nasdaq up by 104 2018 was a red hot year for the labor market as we count down to that big jobs report today, the big question will be will that continue in the new year kate rogers joins us now with more >> 2018 was a big year for job growth 2.27 million jobs have been added since december of 2017 averaging just over 206,000 per month. the sectors that saw the highest number of jobs added for the year are right here. very similar to last year's top gainers, professional and business services took the top spot followed by ed keg and helicopter services, manufacturing, krukts shconstru leisure and hos pi tallit

tariffs may have more of an impact on job growth in 2019 the labor market will also remain tight hiring trends will include higher pay and rewards for retention to keep employees happy where they are company culture will be key as hiring remains competitive and workers will want access to training, to increase their skillsets as well as benefits that include flexibility >> you traveled all over the country for us covering that jobs story what's the biggest trend you'll be watching in the coming year >> definitely what i mentioned, really the tight labor market and what that means for employees. i talked to mark sazandi, he sad if you're an employee, you should ask what you want of your employer, because that trend will carry into next year. we saw all types of perks and bennett efits to not only find w workers, but keep the employees you have happy one thing companies are doing is

hiring people that may not have the skills they need, then up-skilling them and training them so they can hang on to them longer >> all right great story. thank you very much. let's turn to the big jobs report joining me now is danielledy martino booth. why isn't the fed cheering these days >> we'll see what jerome powell has to say later on this afternoon from atlanta he has been meez epleased with b market that is the shining star and the fed's own unemployment rate forecast for 2019 is for the unemployment rate to slip to 3.5% which is an improvement from last month, 3.67%

unrounded. there's a good chance we could see a 3.6 handle this morning at 8:30 >> so, danielle, as we talk about the overall economic picture, jobs have been the shining point of this economy. is it expected this can continue into this year given the gains we've saw over the course of the past 12 months >> it's interesting. we're mourning the loss of herb kelleher in dallas dallas manufacturing survey was the only regional manufacturing survey to show a decline in employment that was echoed in the big ism report that came out yesterday morning that showed a six-month low in employment gains. so there is some concern a conference board ceo survey that hit the wires yesterday showed 54% of ceos who are in charge of pihiring and firing s economic deterioration

so i have concerns going forward that we are going to see weakness, especially given what we're starting to see out of the survey data. >> if we are seeing some of that confidence erode, there has not been a reconciliation between the soft sentiment data and the hard economic data, in your mind are the conditions there to see a recession any time soon. perhaps even in 2019 >> you know, i do think that -- especially given the sudden stop we saw, that word was used by one of the companies surveyed by ism, that they saw demand hit a sudden stop. those are big words. the decline in new orders. i'm worried we'll see a supply cliff, that there was a lot of panic buying ahead of the potential increase in tariffs that were not imposed as of the first of january, and there's not going to be much in the way of follow-through.

75% of the last gdp report that we saw was inventory build we know these things are not sustainable. i am concerned about what demand will look like going into the beginning of 2019. all i'm doing is echoing the ceos and the cfos, they're in charge of making hiring and firing decisions yes, dom, i am concerned >> danielle, we have three federal reserve current or past chair people getting together on a panel today. do you expect anything fireworks wise out of that discussion between jerome powell, janet yellen and ben bernanke? >> i almost think it's a situation where good news could potentially be bad the market is desperate. 16 days ago we heard jerome powell be very hawkish, very adamant, take a strong line about that balance sheet the balance sheet that was blown up by bernanke, by janet yellen.

so it will be interesting to see if he throws the doves a bone and makes ill lusions to the fat that there's been softening and takes a harder line saying we are truly data dependant that's what markets are looking for. this is non-farm payroll friday. normally futures would be flat and they're up markedly. i think markets are anticipating a doffish ti idovish tilt off o today when his speech hits the wires. >> danielle dimartino booth, thank you very much. >> thank you. that does it for the show. let's look at futures right now. we are seeing what should be a nice, solid opening for the stock market the dow jones up by 300 points at this point. the s&p up by 35 the nasdaq up by 115 remember, a big jobs report coming up at 8:30 a.m. eastern, a slew of fed speak coming up

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. u.s. futures are in rebound mode getting about half back from yesterday. china confirming it will meet with u.s. officials next week to talk trade, and we are in the countdown to the december jobs report we'll have the numbers at 8:30 a.m. eastern time. and chairman powell will speak this morning the markets will be hanging on every word this is one of those jobs reports, if it's low, that's bad. if it's high, the fed will take care of that they have an answer for any good numbers. and after the warning heard around the world, what new challenges are ahead for apple's

ceo tim cook is there a crisis of confidence in cupertino what happened to that half trillion it's friday, january 4, 2019, "squawk box" begins right now. ♪ live from new york where business never sleeps, this is "squawk box." good morning welcome to "squawk box" on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and mike santoli. andrew is off this week. we have big news out of china this morning the futures this morning, you can see the dow is indicated up by 290 points. this comes after decline of 66