gz. >> members of congress, the state of our union is strong. >> steven mnuchin and lighthizer

are headed to china for talks. will they get anywhere nap pops the company says users have stopped disappearing it is wednesday, february 6th, and worldwide exchange begins right now. smoet. ♪ good morning, good afternoon, good evening. i'm brian sullivan the speech last night not moving markets that much. futures are lower by 77 points s&p and nasdaq futures down as well listen, we've seen the trend before we start low we move up the markets have been grinding higher all year. if you are not keeping score, here you go. the dow is up 9% in 2019 the nasdaq up nearly 12% as always, more on the markets and the economy coming up. first, to your top story this morning, and that is the state of the union address last night. it was long. there were cheers, and there

were some jeers in the form of some silence president trump talking everything from the economy to trade to immigration let's get some of the highlights eamon javers going on, no doubt, three or four hours of sleep, like i am. >> that's right. all it took was a round of happy birthday for 81-year-old judith to bring the nation's capitol together a very bitterly divided washington united states congress after a government shutdown joined in order to sing happy birthday to -- when the president mentioned his life story as a survivor of the holocaust and a survivor of the pittsburgh synagogue shooting, it was a spontaneous outburst of song on house floor. one of a few bipartisan -- genuinely bipartisan moments last night the president reached tout to democrats on a couple of irons where his advisors thought they could work together, particularly on infrastructure here's what he said on that front.

>> i know that congress is eager to pass a legislative bill, and i'm eager to deliver new and important infrastructure investment, including investments in the cutting edge industries of the future this is not an option. this is a necessity. >> for the most part, brian, the speech was marked by democrats newly in control of the house chamber. notably led by speaker of the house nancy pelosi at the roster largely sitting on their hands for a lot of the lines in the president's speech as they did when the president mentioned what he sees as a need to end investigations of him in

washington d.c >> an economic miracle is taking place in the united states and the only thing that can stop it are foolish wars, politics, or ridiculous partisan investigations >> if there is going to be peace and legislation, there cannot be war and investigation. it just doesn't work that way. >> you saw nancy pelosi shaking her head no when the president suggested that there needs to be an end to ridiculous partisan investigations obviously, she doesn't see them as either ridiculous or partisan, and that's the way it went, largely, last night. democrats not enthusiastic about a lot of the president's

remarks. a couple of applause lines that draw genuine bipartisan applause, but for the most part this was a partisan moment in a very partisan time, brian. >> there were some, eamon, very warm and unexpected moments. you referenced the "happy birthday" singing. obviously, sort of the acknowledgment of grace, the 10-year-old who has been battling cancer. that was literally a tear jerker then you had the moment where you had some stand-up applause from the female democrats, and the president kind of, like, obviously went off the cuff and said don't sit down. you're going to like this, and he referenced the moment where he acknowledged there were more women in congress than any time in american history. there were cheers, and there was clapping there were chants of "usa. that seemed like an off the cuff -- i thought it was a very nice moment into your point, and an otherwise very partisan era in american politics the president noted to hold that

and, wait, he has another line they're going to cheer for that was the president being very candid and spontaneous in that moment, and i thought it was a winning moment i agree with you the other moment that struck me was buzz aldren, the astronaut, saluting the president to a big round of bipartisan cheers from both sides there are still things in this country that both sides can applaud. when you think about the idea of what legislative momentum the president gets out of this, which is the goal of any state of the union, sort of to tee up your legislative agenda for the year as president much the united states, you know, you look at maybe infrastructure, maybe drug prices, health care costs, maybe there's something they can do there, but it just doesn't feel like there's a lot that can be accomplished here in washington no matter how good or bad the speech was last night. >> as i tweeted out, look, we're losing world war ii veterans there's going to be fewer and fewer left i thought it was nice that they did give so much attention paid to the hard fought men and women out there for world war ii especially on d-day and the liberation of camps like daca. thank you very much.

we're going to see you on "squawk box. >> you bet >> lets get more reaction to last night's state of the union. joining us is ben white, chief economic correspondent of politico, cnbc contributor it was a long speech >> it was very long. one of the longest ever. 1:22 >> third longest ever. >> what stuck out to you, though not a lot of economic meat for the cnbc audience, but can you admit there were some good moments in there >> absolutely. yeah he had some damage from the shutdown that he had to undo with his speech. his approval rating had gone down particularly among women and independents, and i think there were moments in there where he was clearly appealing to toes folks that might have soured on -- particularly the moment where he zbratd all the women in congress he did not mention that they're all there -- a lot of them are there now as a reaction to him that was a nice moment.

it was more messaging than politics >> there were some olive branches let's work together. more talk of unity do you think it will work, or is it just going to last until the next tweet sf. >> yeah, it's not going to work. democrats are not really falling all over themselves to work with this president the investigations that democrats have launched into the investigation will continue. i don't think they really buy the line that if you continue to investigate the president, it's it to hurt the economy that is something that i don't think there's a lot of weight to that i don't think they're going to abide by that. this will be something that probably lasts until the next tweet, and then we get back to the business as usual. republicans and democrats at each other's throats >> it is so interesting. i was talking to my wife i thought, man, there are two trumps you know, last night -- there are things in there that people hate, i'm sure, but last night the speech, i think, was overall fairly positive, and he did take a conciliatory tone on certain things

it feels like it undoes some of the goodwill >> you definitely saw in there some of the personal charm that he has that people say they see in trump when they meet him one-on-one and spend time with him. he can be very charming and engaging, and you saw that in that spontaneous moment where he kind of joked with the female democrats about how he has another good applause line >> don't sit down. i think there are people that see that and then you get the tweets and russian news, and theb you're going to get stuff about the wall and maybe another shutdown, and that all gets washed away. i think a little bit of that did come out it's probably going to be effective for him. i wouldn't be surprised if his poll numbers go up a little bit after that speech. there is so much negativity among people who don't like him that they're going to be reminded of why they don't >> did you see -- i wish we had it did you see bernie sanders' face >> i did, yeah >> when he was slamming socialism, and sanders is sitting there like -- >> there was a funny sweet twooet last night. you know "curb your enthusiasm" the show, and they overlaid that

music on bernie sanders' reaction to that grumbling and looking sour that was an important moment, i think, because when you look at what democrats are talking about, a lot of higher taxes on the wealthy and buy-backs, maybe we try to control what corporations do, republicans are both worried about the popularity of some of the stuff, but also see an opening in 2020 to go after democrats as hugely high taxers and anti-corporate and socialists that's a preview of 2020 >> i'm going to put you on the spot because you liver near here we can actually have a lunch or as we call it a breakfast on this show, which is do you think trump runs in 2020 >> i do. >> you do? >> yeah. i would be very surprised -- >> was this the first campaign speech >> it was definitely a campaign speech a little bit more than it was a state of the union it was an effort to repair damage that he has done with -- >> did he plesh? >> i think he accomplished it some with women. there will be positive reaction there, and with independents who were moving away from him after the shutdown i don't think it's a huge game changer, but it's helpful to him in some areas where he was

really suffering >> i know you're not a political analyst, and there wasn't a lot of meat talk of infrastructure little talk of trade and of taxes. anything that you heard or saw that would particularly change investment thesis given the speech >> hey, good morning, brian. no, not necessarily. i mean, the big question in my mind is, you know, what would entice main street investors to get off the sidelines? if you look at the indicatedance of our environment over the last two months, main street has been really reducing their exposure to equities. it started with the correction in october it passed through in the tax law selling and correction in december the most interesting thing is despite the strongest january we've seen in quite a while, main street continues to reduce their exposure, and so the

market has been left in relatively sort of a low volume environment driven by a lot of quant and program trading. to your point, you know, did we hear anything last night that would necessarily move those main street investors off the sidelines because, again, there's still a lot of money on the sidelines that could rotate into equities, and i think i they were to do so, you could materially move the markets for a long time. in my opinion, there wasn't really anything necessarily. we'll have to see in the coming weeks if anything, any of his issues, anything on his agenda comes to fruition markets are very hot and extended. even despite any of his comments, and so some profit taking consolidation

i wouldn't be surprised by that. what's it going to take to get people off the sidelines in the market apparently they've been sitting there for years. >> well, i don't know that they've been sitting there for years. i mean, main street has been heavily concentrated most recently in a lot of tech, internet, and fang, and, again, they've divested with this most recent correction. you know, performance begets activity, and as the markets continue to grind higher, i think you're going to continue to pull more investors off the sidelines. don't forget, we have three demographic cohorts that the market really needs to entice at this point you have the baby boomer that has tremendous net worth at this point. you have gen-ex behind them, and then you have the rise of the millenials, and that's really, you know, pouring into our work force and starting to build their own net worth.

the markets aren't expensive here at 16, 17 times as the markets continue to grind higher off of economic expansion, you'll pull more of the gen-exors and millenials off the sidelines as they begin to develop their net worth, and you'll entice the boomers to come off the sidelines as well performance, that's what's going to do it i don't think it's going to be what any standing president does over the next, you know, few years or so. >> sounds like the next transformers movie "transformers, rise of the millenials." dan, you have a great day in philly thank you very much. >> thanks very much. >> birthplace of america we are just getting started here on worldwide exchange on deck, a very rare exit from apple. a big departure in the c-suite we'll have full details ahead. plus, disney double willing down on streaming, but will espn plus be a plus for disney shareholders, or just a big money loser? we'll dig in when "worldwide exchange" returns.psticks.com!

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>> apple's retail chief will be leaving the company in april this follows the first decline in holiday sales since apple

launched the iphone back in 2007 she'll be replaced by deidre o'brien who is also the vice president of people in charge of hr and talent development. she ran apple's retail and on-line stores for the last five years. she's the former ceo of the luxury brand burberry, and she's credited with redesigning the brick and mortar stores are an emphasis on luxury and improving customer service the company expanded its retail stores by 14% from 437 to more than 500 she's making more than $26 million last year. about ten million more than ceo tim cook in a statement cook says, "i want to thank angela for inspiring and energy iz our teams. she's been a positive and transformative force she's been once rumored to be tim cook as eventual successor, but in an interview with buzz feed in 2017, she really dismissed those claims as fake news and silly apple shares, they're down just a little under a percent right now. for the year the stock is up

about 10%. brian, back to you >> frank, we'll see you in a few minutes. thank you. shares of disney are moving higher this morning. this after the media jiebt topping wall street's estimates. the company citing sales increases in media networks and the theme park business. disney also reporting huge growth in its streaming sports service espn plus. it now says that service has more than two million paid subscribers with double the number it had five months ago. however, it is still losing money. let's bring in managing partner of media tech capital partners porter, great to have you on the phone here here's a quick question. we know streaming is the future. they charge $4.99 a month for espn plus. it's still losing money, but it's growing do you eventually believe they're going to find a way to make this profitable >> there's no question about that, brian. the big unknown right now in terms of timing is on-line betting, which is going to be the bonanza for espn since it has a lock on the majority of

live sports and a huge aggregation in sports data that betters will not only love, but ask to have if they're going to put their money down >> that is an interesting point. you saw this at the super bowl over the weekend, obviously. sports betting legal in new jersey you can just download a couple of the apps. do you think eventually that bob iger and disney because, listen, porter, they have a family focus, and so sometimes it's kind of hard to see where gambling might fit into the whole disney scheme. >> when gladys knight sings the national anthem on the super bowl, you're not standing too far away from family fair. the fact of life is this is the biggest transformation that disney has ever experienced. bigger than going from animated films into theme parks bob iger has made direct to consumer his number one priority, and it will be his

legacy as well disney is late to the game in streaming, but look what they're doing in espn and then in two months in april iger is going to demo the disney plus netflix killer, which will launch in late this year on top of that they have hulu. they have 60% of hulu, and that's going to be in adult fair, sophisticated streaming competitor to amazon and netflix and every all the juanabes >> is it going to be kaler is everyone going to have everything you're going to have netflix, espn plus, you're going to have the nbc product, hulu, you'll have them all? >> i like what iger said in the conference call yesterday. he said you've got too much content on a lot of these streaming networks particularly netflix and amazon right now. he said brands are going to matter i believe that there's no question that family

fair, that disney has in its archive and will continue to produce is going to make disney plus a winner. >> i bet our team that the word surf it would not be used before 5:30, so i lose. porter bibb, media tech capital partners thank you for your nsight. talk to you soon >> always a pleasure on deck, call it a teen trifecta we're talking cars, video games, and snapchat later on, it is man versus machine. a robot, is it coming for your job? they might be coming for your investments. chat with a ceo of equibot congp.mi u

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dow futures down right now, but right now let's talk about maybe a millennial hat trick disappearing pictures, video games, and cars. all big stock movers this morning. let's start with snapchat. snap posting a narrow fourth quarter loss revenue jumping. snap also reported flat user growth, but that's actually good news because it put a halt towards the downward trend that plagued it the last year investors loved it, and short sellers, no doubt, had to cover the stock. snapchat shares up 20% in the premarket. do keep in mind that even with that move snap isstill down 60 from its highs earlier last year electronic arts down right now the video game maker cutting its revenue outlook for the year ea's new battlefield five game sold about a million fewer copies than expected because it

faces rising competition from, who else, fortnite toyota's third quarter profit fell 80%. yeah, 80%. investment losses offset relatively solid sales the company is cutting its net profit outlook for 2018. although it is leaving its operating profit and revenue forecast unchanged toyota stock down about .75% let's step away. we start with police in illinois who are investigating a series of highway shootings leaving a woman dead and three people wounded it happened monday along i-57 in the chicago area just eight miles apart. in one incident a postal worker was killed on her way to work when someone in another car opened fire. in the other a man was critically wounded, and two boys, 15 and 12, hospitalized. police are asking any witnesses to come forward with information.

gunl control advocates may have the votes in the house, but the nra opposed universal background checks, and the bill's prospects in the senate are doubtful an urgent warning for the owners of over 660,000 fiat, chrysler heavy duty trucks these vehicles may be assembled with a loose nut that can cause drivers to lose steering control. the recall covers models of the ram 3500 pickups from 2013 and 2017 2,500 pickups and 3,500 cabs most of the trucks under recall are in the united states and canada the defects might have already caused eight crashes and one injury, according to the company. owners call 800-353-1403 for more information check on-line. all right. we'll take a break, and more worldwide exchange when we return

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skbro members of congress, the state of our union is strong >> the president hitting everything from immigration to drug prices, but will that speech kick off any bipartisan action we'll dive in. disney delivers a stock higher this morning reporting strong results led by espn plus. the changing face of facebook. the social media giant making big changes to how it hands out bonuses. you're going to want to hear this the details as worldwide exchange rolls on.

>> welcome bab blondy was the band she was the singer i'm brian sullivan futures are moving lower a little bit had a great start to 2018 so far. we'll get to the markets in just a bit. really, it is all about last night's big speech the president touching on many, many things, and a speech that ran an hour and 23 minutes one of the longest of all time let's get right now to eamon javers to wrap it up in case you missed it last night >> it was a long speech last night, but there were a number of heartwarming moments, including the moment in which all of congress decided to spontaneously sing "happy birthday" to judas it was his 81st birthday he was a holocaust survivor and he survived the pittsburgh

synagogue shootings. congress burst out in song the president conducted them along like a musical conductor it was one of a number of heartwarming moments in the speech the president tried to reach out to democrats on a number of issues where he thinks he might have common ground with the democrats in terms of legislation this year. one of those was enfrom a structure. zoo both parties should be able to unite for a great rebuilding of america's crumbling infrastructure i know that congress is eager to pass an infrastructure bill, and i am eager to work with you on legislation to deliver new and important infrastructure investment, including investments in the cutting edge industries of the future this is not an option.

this is a necessity. >> for the most part the night was marked by democrats largely sitting on their hands for a number of the president's applause lines republicans jumping to their feet and applauding like we saw in this moment in which the president suggested that democrats who are now in control of the house chamber shouldn't investigate him or his administration >> an economic miracle taking place in the united states and the only thing that could stop it are foolish wars, politics, or ridiculous partisan investigations.

>> there cannot be peace and investigation. it doesn't work that way >> you saw nancy pelosi there sort of laugh and shake her head at the idea of ridiculous partisan investigations. i don't think the president is going to get what he wants on that front the question is on the legislative front, can the president get what he wants in terms of lowering drug prices, infrastructure, and some of the other items that he highlighted in the speech last night >> i know you are a soccer fan is it starting to feel like politics is the british soccer season it just never ends like, there is no -- man u wins a title. tomorrow, the new season kicks off. that's how it feels. >> it does i think we're going to see a few more democrats announcing that they're running. amy clobachar from minnesota just said she's got a big

announcement coming up this weekend. i think it feels like half the democrats in the senate are running. i think that's because they sense weakness here. they see a president whose poll numbers are low that threaded a very narrow needle to get elected in the first place, and they think they might have an opportunity in 2020, and that means they have no political incentive to give him legislative wins even on those things like infrastructure where in theory they agree broadly on the need for legislation where are there's just not that window for legislation this year. >> three bills that will have to be attached to something else. eamon, thank you >> all right here's how the markets are reacting maybe to last night's state of the union or just the markets are reacting to the markets. stock futures down the early trade. nice year so far for the dow up over 8% the nasdaq up 11.5%. the bond market has maybe been the big shocker in the last couple of months all the people clawing for 3.5%, ten-year yields. where are they now the benchmark ten year is --

let's bring in one of the people who is not calling for 33.5% you weren't one of those 3.5'ers, were you? >> i was not we were beaten up pretty bad from 2018 looking for the downward pressure on the longer end of the curve we did start to see those weaker fundamental data points filter in, and that has translated into, again, those lower figures. >> that's not screaming expapgs. >> it's interesting because the president touted the strength of the economy, but moved on pretty quick back to politics i think that's against the back drop of a very volatile market as we saw at the end of last year, and the rising risk of fundamentals factoring in more weakness moving in further into 2019 and, of course, into 2020

with a lot of analysts now starting to talk about the r-word, recession. the president moving on pretty quickly from the economy to talk about identity >> you talk about the other r-word, re-election. were you a little bit surprised at the lack of economic meat in the speech sell a trade and infrastructure and then, quickly moved on >> he touted it as an economic miracle. i think for it to be fair, there was a lot more time sensitive issues that the president did have to address with that second round shutdown now, just leering around the corner ten days from now >> that's important because maybe the economic meat was the fact that there was an olive branch extended a little bit to the democrats that could help avoid a shutdown again, don't want to dive too much into politics, but i remember, was it 2013, we had a shutdown, but it was because of the debt ceiling and the markets went haywire would the next shutdown, if it is related it a debt ceiling, be far more devastating than the previous one >> i think it will be far more

devastating from a duration standpoint i do think that in terms of the quantitative impact on longer term basis, we see a lot of volatility in the number, but essentially, we gain back a lot of the lost activity that we see in the quarter, the month of the shutdown >> how are you doing your job? >> it's very difficult >> well, i mean that sincerely, are because with the shutdown, your job is to take all this data, sort of mash it all up and use that big brain how are you doing your job >> it's making it a lot more difficult. what we're trying to rely on is some of the ancillary or secondary numbers that we can find through other sources as opposed to the government release data you're right, we're still waiting for q4 gdp by the time we get that, that's going to be so far in the yearview mirror that it won't give us a sense of where we can expect to be heading and beyond. >> all the ancillary data, what are you seeing >> i think we're seeing more weakness bubbling underneath the surface. now, is that enough to sideline the fed? right now they're taking a very

patient tone, but the data still saying a near 2% inflation level, a 2-ish percent growth rate those were the factors that were enough to push that fourth round rate increase through in december even though the fed has a more patient tone at the moment -- >> don't lie i'll know. you live in minneapolis. >> that's true >> is one of your channel checks the mall of america? >> no, it should be. it should be >> right >> really to see what consumers are doing. >> how full is the parking lot >> they have great public transportation to take you directly >> and a roller coaster inside the mall >> that's true that's true. >> get it on it. linda, thanks.

>> it's early and the state of the union was last night we're a little bit off so, listen, it's a crowded etf field. how do you get investor attention? ai is a buzz term. i get it how do you get focus and attention on ai and what makes your etf's different than all the other stuff that's already out there? >> yeah. i think the more than the ai, the peak out of the ai is not active intelligence. when you look at the market, you want to bring the -- you want to help everywhere get access to the financial world. the key thing about the market is finding the opportunities the opportunity is a moving target it's an opportunity somewhere.

when you find the change in the value, and to find the change in value, we have to approach it to intelligence, which is it can adapt. that is where we come separate we look hard with the way -- like the way we define our technology is, like, maybe equity analyst we look at global companies. we look at every man as one of the companies. we look at every event that is happening. >> no worries. man, it is early, and i screwed up your name how about this let me ask it a different way. you use ibm, and we know these are super computers, and it sounds really fancy. again, when i look at your ai eq, the top holdings, google alphabet is your top holding you have net app, and then you have costco and amazon it is diversified, but is diversified the way that you want to be in this market? >> so the ai eq, the objective

is to mirror the market and -- so when you give that kind of system, it naturally tries to diversify, and our system tried to find -- when you look at opportunity happening in a different sector and see what is the best opportunity in each sector, you try to find -- you will pick up technology structures >> how is the interest in these two etf's bid? how is -- it's a crowded space >> it is a crowded space we have been quite ortunate, and people have been very responsive a.i. e.q we have seen real interest, and we believe we'll be doing a similar way because the way we look at the global microeconomic existence, i think the market -- you look at the market they are going to -- a.i. eq is

to look at that. >> i lot of the fact we have two live human beings talking about the a.i. etf the a.i. eq and a.i. i.q cheetah, thank you se see you soon the big memorable moments from last night's state of the union. plus, a fresh sign of the times. if you ever needed a butter emogi, there's a bunch emojis coming out one goes well with another one wel llouhath are coming up. your brain is an amazing thing. but as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered...

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>> what else we're talking about today, we're talking about what we're talking about because we're going to start with the state of the union it is still early. last night's state of the union had its share of memorable moments. in a show of unity, democratic women wore white to the speech they even got a shout-out from the president. >> don't sit yet you're going to like this. exactly one century after congress passed the constitutional amendment giving women the right to vote, we also have more women serving in

congress than at any time before. >> he served as the designated survivor if something tragic happened. >> aliens, locusts or nuclear bombs. >> he becomes the president. >> yeah. >> pretty cool >> i think i know where he goes to, but i can't say. >> what you do enmoo the hide-out spot you mean you have to lay low in case something happens. facebook is changing the way it awards bonuses. the social media giant will link bonuses to things like tackling privacy issues and disinformation two big issues for facebook.

>> somebody sends me the skunk or the slot, we're fighting. what are they trying to say? >> it will be code for something else -- >> i have argued forever we're going back to the action news she -- ancient egyptians. i'll gets from my wife that i have to bring home a flaming pyramid, the cat, and the eye of soran. we're going back to hyroglyphics >> now you don't have to type

lol. just click the laugh emoji and then -- >> do you do the colon and -- >> then you go back. it's like old school, right? >> no, no. you got to move forward. >> got to move forward, not backward >> just like tear smiles >> what is the waffle saying >> i think it means -- >> don't waffle? >> you know what it means? invite frank to the breakfast next time. i think that's what it means you left me out. still a sore spot. >> it should be, and we had waffles, by the way, and they were delicious zplie kn >> i know you did. just and i, we'll go out >> deal or no deal one china expert said the president may not actually want a trade deal with china after all. controversial view, and we'll dig more in. later on, the one word, the president used more than any other in last night's state of the union. not a conjunction. an actual word do you know what it was? it wou be coldol we'll show it to you coming up trust us in't easy.

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zplie don't blame china for taking advantage of us i blame our leaders and representatives for allowing tr. i have great respect for president xi, and we are now working on a new trade deal with china, but it must include real structural change to end unfair trade practices, reduce our chronic trade deficit, and protect american jobs. [ applause ] >> the president talking china trade during last night's state of the union address and new this morning we are learning that treasury secretary steven mnuchin, and u.s. trade representative robert lighthizer will go to beijing next week for another round of trade talks we're going to hear much more about that later on this morning in our sitdown with the treasury secretary 8:00 a.m. eastern time joining us now is gordon chang, author of the coming collapse of china and a daily beast

columnist. these trade talks have been ongoing for a while. lots of back and forth you believe there is any real progress being made, and >> that's about all there was on china and trade. i mean, in an hour and 20 minute long speech, are you surprised that we didn't hear more about the topic? >> i was very surprised about that also, i think, brian, what's important is what we did not hear you know, president trump talked about meeting kim jong un, the

north korean leader, gave a specific date. february 27, 28. he didn't talk about meeting xi jing ping, the chinese ruler, and people had expected him to sort of announce that because the chinese had said, look, we want to meet with trump. trump said i want to meet with the chinese, but he didn't actually confirm it. that's an indication maybe the discussions are more fluid, they're not as progressed as people think they are. the markets might be in for a little bift a surprise on this one. >> into a meeting with xi jing ping >> well, clearly the chinese can come down to vietnam or trump, for instance, could go to china. the chinese want him to go to hinan, which is part of the people's republic. i don't think trump should do that he shouldn't be going to chinese soil to talk about this? >> why not >> it's like the old barbarians

going to the celestial court to show that they were inferior and that the chinese were the dominant power clearly, trump should not do that if he wants to talk to theed chinese, have them come down to vietnam. have them, better, come to mar-a-lago again >> do you think that could happen >> you know, it really -- >> there has to at some point be a next step. there's been a lot of talking. we've heard a lot about meetings and talking. there has to be a next step. something on paper something concrete that they can announce >> and everyone, you know, commentators are saying, look, it's going to be sort of a simple deal to reduce the trade deficit. trump a couple of days ago said, no, it's going to be a kpre comprehensive deal that will deal with structural issues, and probt lighthizer after the state of the union said, look, the new u.s. mca agreement is going to be the model for future agreements, which is a direct message to beijing trump didn't say that himself, but trump has been talking about u.s. mca as really a model he has done that in the past

clearly, the chinese should be getting the message. >> gordon chang, we appreciate your views as always have a great day thank you very much. >> thanks, brian am i the only one that thinks mc aand thinks about the beasty boys? this morning fun facts about last night's speech. it was it is says third longest ever, coming in at 82 minutes. in case you are wondering, bill clinton holds the record for both the first and second longest speeches we also want to know president trump's favorite words we generated a word cloud from last night's state of the union. you can see the most words used were american, america, and united bringing us together, perhaps. we did a little more digging, and we compared some of the key worz used in last year's to this year last year the president used the word taxes 13 times. this time only four times. last year spoke about the economy three times. this time a little more. five last year he said jobs six times, and this year jobs were used ten times more focus on the economy. hey, we're making word clouds great again here on "worldwide

exchange." america, americans, and united that's it for us seal you on "squawk box" 7:00 to 9:00 the show kicks off, though, right now. have a great day no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. sending your own clubs ahead with shipsticks.com makes it fast & easy to get to your golf destination. with just a few clicks or a phone call we'll pick up and deliver your clubs on-time, guaranteed, for as low as $39.99. shipsticks.com saves you time and money. make it simple. make it ship sticks.

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president trump tackling wide range of market-moving topics in last night's state of the union address from immigration and infrastructure to drug prices and geopolitical risk we have reaction to the big speech straight ahead. disney delivers. the stock moving a bit higher this morning after reporting strong results, but it's the streaming subscriber numbers that are drawing most of the attention this morning shares of snap are up nearly 25% as the company halted its slide in user growth we'll dig through those numbers. it is wednesday, february 6th, 2019, and "squawk box" begins right now. ♪ i can make your hands clap ♪ i said i can make your hands

clap ♪ >> live from new york where business never sleeps, this is "squawk box." >> good morning. welcome to "squawk box" here on cnbc we're live at the nasdaq market site in times square i'm melissa lee along with mike s santoli where, joe and becky and andrew are all off today the morning after state of the union address. the dow jones looking to give up 65 at the open the s&p looking to give ip nine. the nasdaq looking to be down by 25 all three major indexes are at or close to 200 day moving averages we're sort of a critical point here in the equity markets here in the u.s overnight in asia markets in china and hong kong were closed for the lunar new year they continue to be closed the nikkei, though, is up fractionally by .1%. there was a big move in the australian dollar.