it's 5:00 a.m. here's yours five at 5:00. breaking trade news that u.s. and china are reportedly one step closer to hammering out a new trade agreement. we'll have the full details straight ahead futures also pushing higher on hopes of a new trade deal and lyft reportedly planning to file its ipo as soon as next week johnson & johnson says it has received subpoenas from the justice department and the s.e.c. over its baby powder products and a basketball blowout. nike doing some damage control this morning after last night's big duke-unc game.

it is thursday, february 21st, and worldwide exchange begins right now. ♪ good morning, and welcome to worldwide exchange i'm dominic chu. brian sullivan is off today. what you're seeing here is a live shot of our nation's capital, washington d.c., where trade talks between the u.s. and china will kick into high gear today, and we are getting some late-breaking headlines out of those trade talks. reuters is reporting that the u.s. and china have started to outline memorandums of understanding on six of the stickiest issues in the trade dispute. according to sources, they include forced technology transfers, cyber theft, intellectual property rights, services, currency, agriculture, non-tariff barriers to trade

this does mark the most significant progress yet towards he wanteding a seven-month trade war. we expect more to come as negotiations from both the u.s. and china resume high level talks as they kick off in wash wash this week now, here's how the markets are reacting to some of the trade headlines. futures right now pointing to a slightly higher open you can see the dow opening up by about 45 points the s&p by just about five, and the nasdaq by about 20 or so on the asian side of things, a bit more of a mixed session. you can see with japan's nikkei just up fractionally about .2% the hang seng and hong kong one-half of 1% to the up side, and the shanghai composite and kospi both just slightly lower in the european trade, a mixed session there as well. let's check out the german dax up by one quarter of 1%. the cac up, and the ftse and u.k. off by over one-half of 1%. that's the global market setup let's bring in the global investment strategist with

principal global investors good morning, and thank you for joining us as we see these trade headlines take hold, is there an indication from your side of things that maybe a lot of this optimism is already priced into the market >> yes definitely i think most analysts out there do expect to have some kind of progress i think, you know, if we were to see some real clear improvement and progress with regards to the technology transfer, some of those areas of the negotiations, then i think the market would really do well because that hasn't been quite priced in. what we do expect to see is some advancement with regards to the tariff sites, and maybe china agreeing to increase the amount of imports they've been buying from the u.s especially on the agricultural side the technology transfer, i have to say, i think is very difficult for china to really put that into effect given it's so important to their plans for the next decade or so. >> as we look at the way that the markets are reacting to this, yes, there hasn't been a

fully priced in market for china-u.s. trade deal, but there is optimism that perhaps the global economy will do better. do you in your mind feel as though a significant development from these trade talks before march 1st could be good for the global markets and global economic setup >> if the u.s. -- the second round of tariffs, that's inevitably very positive for the chinese economy, and, therefore, given the size of the chinese economy, it's positive for global economy, global markets, too. i think,though, a lot of this is somewhat priced in. most of the market move that we've seen this morning, that kind of positivity in equity markets, it's really from the fed yesterday. >> all right speaking of the fed, let's bring that into the conversation we do know that the federal reserve and other central banks

around the world represent one of the bigger market catalysts out there. the fed seems to be front and center for that. was there anything that you learned over the course of yesterday, the last couple of days, that makes you feel as though the fed is still a wild card in this, or is the fed pretty much on hold for the remainder of the year? >> well, look, i think the thing that most people learned from yesterday was that there's still potential of another rate hike this year. many people across the market had been expecting after the fed meeting at the end of january that actually there were no more hikes and potentially the next move would be a drop.

>> that's certainly a risk for the markets. if you do see them continuing to turn down, that would be taken as a negative. i think the fundamental thing, sorry, for the market is that now that we know that the fed is going to be completely data-dependent, we can expect to

see major market swings with every relative piece of data that comes out for the u.s every kind of labor market report, anything to do with inflation, the market is going to react to. i do expect there to be wild swings across the market as the year progresses. >> thanks very much for those thoughts this morning. we appreciate it well, in corporate news lyft is reportedly planning to file for an ipo next week frank holland has more on that story, and it's a big one. it's one of the biggest private companies out there. >> huge story here, dom. lyft will be the first publicly traded u.s. ride-sharing company. sources say it plans to launch the road show for investors during the week of march 18th. now, that's expected to last for about two weeks, although the company's plans are still subject to change. lyft is reportedly now valued at between $20 and $25 billion. that's after the last major round of funding last year reports say lyft, which filed its paperwork confidently with the s.e.c. late last year, will

list its shares on the nasdaq. that ipo could happen by the end of march uber has also privately filed for an ipo, but reports say it needs several more weeks to prepare. uber's valuation is believed to be as high as $120 billion it also operates in more cities internationally, while lyft is primarily available in the u.s. and canada conditions, while they may be good for both to go public, the nasdaq is up more than 13% this year dom. >> a very highly anticipated ipo for sure both those companies, frank. thank you so much for that. shares of barclay's are moving higher after reporting results, and we have fresh comments from the bank's ceo overnight. let's get to juliana in london live with more on those details. a big bank reporting some big numbers. what did he have to say? >> yes, indeed barclay's has reported a beat on

fourth quarter profit before tax, although full-year profit did miss expectations. this comes after the bank took a 150 million pound brexit provision. really follows what we've seen from the other u.k. banks. hsbc and rbs recently announced similar provisions now, barclay's reported a dif debd of 6.5 pence per share and said it intends to grow that progressively, and will consider additional returns, including buy-backs as soon as practical quite strong language around the potential for further returns from barclay's now, as you said, we did get a chance to sepeak to the ceo earlier on the show. take a listen to what he had to say about the fourth quarter earnings results demonstrated that they're on track we have recapitalized the bank we have put all of our legacy issues behind the institution. we have clean air in front of us now. >> now, dom, you mentioned that the barclay's share price has reacted positively to these

results. one of the reasons in addition to the dividend commentary is that the investment banking division faired pretty well relative to expectations this is a key sticking point for investors in particular. their activist investor who has been putting a lot of pressure on barclay's around their stat strategy, around the investment banking division the fact that this division withstood a difficult fourth quarter and reported profit in line with expectations is certainly taken well by the investment community back to you. >> all right, juliana. one of the big points that many bank ceos especially in europe talk about these days is brexit. any commendary from him with regard to whether there are concerns from his end, new and developing, with what's happening with brexit right now? >>. >> they took a brexit position, and it's uncertain at this point it is really a

matter of they don't know what's going to come next, so they are taking provisions. that's what we've seen from hsbc and rbs. jot bank has been under skrut for alleged veelgss of u.s. sanctions and foreign exchange issues the standard charter shares up by .2% swiss r's annual profit rose 27% despite claims from natural and manmade disasters. however, those results missed forecasts last year, and it wasn't as severe as 2017 when a number of hurricanes, fires, and earthquakes in north america made it the costliest year ever for the insurance company. shares up by 1% in european

trading. shares of lenovo hitting a nearly three-year high in hong kong trading the world's biggest maker of pc's swung to a profit in its third quarter beating forecasts. lenovo says it is optimistic about future growth in china and plans for focus on the high-end market those shares were up by about 12% in asian trade zbrierj we are just getting started here on worldwide exchange up next, a housing pulse check the best global opportunities in real estate for your money we'll lay them out for you ahead. plus, johnson & johnson under fire yet again the dow component slapped with federal subpoenas over its baby powder the full details when "worldwide exchange" returns after isth and saying, "really?" so capital one is building something completely new. capital one cafes. inviting places with people here to help you, not sell you. and savings and checking accounts with no fees or minimums. because that's how it should be.

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it's a now there's one store that connects your life like never before store. the xfinity store is here. and it's simple, easy, awesome. here's how your money and investments are setting up for the day. stock futures right now currently pointing to a slightly higher open. as can you see there, the dow just up by 50 points the s&p indicated higher by about five points, and the nasdaq indicated higher by about 21 points. a mixed session in asia. we saw some activity to the up side when it comes to what happened with the hang seng in hong kong. up one-half of 1%. the nikkei in japan up by .2%.

a negative day to one-third to the percent of the shanghai composite. on the european side of things, that same mixed session playing out there as well. the cac in france just slightly to the down side the ftse 100 in the u.k. off by three-quarters of 1%, but the german dax fractionally to the up side as well. sticking with that european trade, brexit is just 36 days away, and it could have a huge impact on the real estate market both in europe and, of course, other markets as well. joining me now is guy barnard, co-head of global property exquits at janice henderson investors. guy, thank you so much for being with us. are there concerns and are they playing out in a marked way with regard to real estate on both sides of the english channel the real estate market in which i envest is clearly a domestic sector, and it's at the heart of some of those concerns

what we see in the listed stock market today is stocks trading at very wide discounts to the value of their portfolios. despite the fact that the underlying commercial markets actually are pretty resilient. really just reflecting that heightened level of unsesht in the u.k. today >> so are there parts within that industrial or commercial real estate market that are playing out more dramatically than others? say, health care or, say, banking or, say, industrial use factory type facilities. where are you seeing the most kind of activity happening >> yes our core focus is really on the commercial property sectors. there you have a structural head wind, and that's cyclical pressures as a result of brexit. yeah, we're seeing pretty significant falls in the value of shopping malls across the

u.k. in the last 12 months, and we think that's a trend that's set to continue. i think our view is it's actually wrong to ignore the u.k. totally despite the uncertainty, we've actually been able to generate some pretty strong returns in the market over thelast three years. really by focussing on those parts of the u.k. property market benefitting from structural tailwinds and areas like logistics, which is benefitting from the growth of e-commerce areas like student accommodation and self-storage, and, you know, as a result, it would be wrong to ignore the u.k. just because of the brexit uncertainty. >> as we talk about -- you mentioned student housing. you mentioned -- i guess we could put that in the same vein as maybe some of the larger scale residential complexes like apartment buildings, that sort of thing is there any kind of a movement so to speak in what's happening with the accommodation side of things given some of the unsesht around brexit, given the fact that we maybe could see less mobility, hypothetically speaking, from people in the

continent versus, you know, what's happening with the u.k. >> the residential market in the u.k. has been a bit of a two-tier makt for the last two or three years the super prime london market that really led the charge in sort of 2010 throughto 2015 ha really ground to a halt in the last few years brexit uncertainty certainly one of the factors, but i think an increased level of taxation stamp duty probably the bigger driving force there. clearly, international capital, i think we've seen as some of the buyers from the asian markets that have really stepped back from, you know, essentially forward funding some of the residential development schemes in high-end london apartments. that's a trend that we think is likely to continue we're not too enthusiastic about the high-end london residential market where we would be more constructive is in more affordable regional residential markets, and, you know, increasingly for us we've got a

new sector emerging in the private rental sector, so dedicated apartment block similar to those you have in the u.s. focused on providing a very high quality amenity to the tenants there. you know, that's a growth market that we think we will see opportunities in in the years ahead. >> all right, guy barnartd for the real estate check on the global markets thank you for joining us this morning. tariff talk. the ceo of one of the world's biggest carmakers is sounding the alarm on tariffs we have the full details ahead plus, a burger with a side of cake? the two food stocks that will have investors licking their chops this morning those names when worldwide exchange rur aerhietnsft ts. visit thousands of companies, in a multitude of countries, where we get to know the people that drive a company's growth and gain new perspectives. that's why we go beyond the numbers. t. rowe price. invest with confidence. that's why we go beyond the numbers. ♪ wake up sweetie. ♪

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that's a life shot of a foggy hong kong. we are seeing quite a bit of activity and focus on, of course, that part of the world because of the u.s.-china trade talks ongoing at the deputy level right now in washington d.c. shares of volkswagen are,

you can see there, just about unchanged in german trading. the dax is outperforming parts of the market right now in european trade in other corporate news johnson & johnson says it has received subpoenas from both justice department and the sec this is related to the alleged asbestos contamination in the country's signature baby powder products j & j says it intends to "cooperate fully and will continue to defend the company in the talc-related litigation johnson and johnson shares off by nearly 1.5% in the extended trade early in this morning here in the united states let's get a check on some of the other big earnings movers today. shares of cheesecake factory are higher despite reporting mixed fourth quarter results as you can see here. earnings and revenue missing forecasts, but the same store sales number rose 1.9% that was above analyst estimates.

the car mental e rental firm also expects higher revenue this year as the number of days customers rent vehicles goes up. those shares up 11% in the extended trade well, let's get a check on the morning's other headlines. we'll bring in nbc's francis riviera live in the new york newsroom with the latest good morning, francis. >> hi, dom good morning to you. shocking arrest the u.s. coast guard lieutenant accused of plotting a terror attack prosecutors say it was on a scale rarely seen in this country. christopher was arrested on gun charges. he had an arsenal of weapons, including 15 firearms and 1,000 rounds of ammunition

also a list of targets that included prominent politicians, presidential candidates, and tv news personalities, prosecutors say. after more than two years of work, robert mueller is now reportedly nearing the end of his investigation into a russian election meddling and possible links between the traufrp campaign and kremlin officials the justice department is expecting the special counsel's long-awaited report as early as next week. mueller will present his findings to the new attorney general who will then decide gist how much will be made public the tables have turned in the jeussie smollett saga. he is now facing a felony charge accused of filing a false report claiming he was the victim of a hate crime attack. meanwhile, variety reports that fox is considering removing the actor from the hit show "empire" after producers learned of those charges. dom, we send it now back to you. >> francis riviera, thank you for that news update coming up next on the show, tariff troubles, chinese exporters feeling some serious pain thanks to the trade war we're live on the ground in china.

that's coming up plus, a smartphone game changer. possibly samsung revealing its latest product and it's sure to have everyone buzzing in the office today. we'll explain when "worldwide exchange" comes back after this. imagine traveling hassle-free with your golf clubs. now you can, with shipsticks.com! 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.

tech on tear the nasdaq is going for its, get this, ninth straight day of gains. we'll find out what's driving that big tech rally. and a basketball blow-out. not in a good way. nikery doing some damage control. this morning after last night ace big duke versus north carolina game. the full details ahead it is thursday, february 21st. you are watching worldwide exchange right here on cnbc.

barclay's also setting aside a brexit provision of $170 million citing a lot of uncertainty. in trade news reuters is reporting that the u.s. and china had started to outline memorandums of understanding on six of the stickiest issues in the trade dispute. according to sources, they include forced technology transfer and cyber theft, intellectual property rights, services, currency, agriculture, and non-tariff barriers to trade. this marks the most significant progress yet towards ending a seven-month trade war. we expect more to come as negotiations from both the u.s. and china resume high level talks today in washington dom, back to you >> all right, frank. thank you very much for those headlines. we're going to stick with that trade conversation the u.s. and china trade tensions are starting to take a big toll on chooirn's export sector a slew of chinese workers have been laid off as the nation grapples with some of the

fall-out younunio eunice yoos s yoon has more on . >> the companies where i am here in the manufacturing south have already been hit by the uncertainty over the tariffs exporters and workers worry that these could get worse if there is no trade deal zbliefrmt this chinese factsry used to turn out shoes for shoppers in the u.s. today it's idol. >> back in december the factory shut its doors for the last time, laying off more than 1,000 workers. >> chu was one of them >> they up to date a notice to announce the shutdown and told everyone to pick up their salary and compensation, he says. and his fellow ex-workers had moved to cambodia. part of a broader trend of manufacturers shifting to cheaper countries to battle rising costs in china. one person's salary here is equal to six workers there, he

says the trade war certainly had something to do with it, too after 20 years of experience, chu earned $725 a month. with china's economy slowing and exports to the u.s. under -- workers told us good jobs like that are harder to find. factories here in the industrial south are offering fewer benefits dman last year offering only part-time contracts with china pushing to upgrade it is manufacturing sector, chu says he looks the skills recruiters today are looking for. zplool there are so many unknowns i'll have to wait and see if there are better opportunities until other places and until uncertainty lifts over the jobs market.

economists estimate if the 25% tariffs are imposed, china could see job losses anywhere from 700,000 to 5.5 million depending how the government responds. it's probably from the most sensitive topic for the chinese are -- is unemployment skbro is there any sense that it's shifting away a little bit from the power structure in china with regard to how they've taken this strategy towards trade talks with the u.s.? >> that's rail, really great question, but one that's also very difficult to answer

>> i who say that there are parts of the government that do believe that there needs to be some sort of deal because at the end of the day the way that the economy is headed, they feel th that. let's turn now to the markets. the futures right now showing some signs of at least a little bit of optimism on those china trade u.s. headlines the s&p indicated higher by about three points the dow jones up by 36 the nasdaq up by 17 points now when it comes to sectors in the s&p 500, one of the lagards has been the consumer staples sector as you can see here, we have seen a bit of that underperformance play out, and as we talk about some of the ideas that we are seeing, that

is showing right now in signs that perhaps we are seeing a bit of movement there. the futures indicating that particular move. now, as we take a look at some of the companies that may stand to benefit if markets turn higher, let's check these names out. the analyst community is checking out some of the ones because we have some of the ideas at least that these stocks are ones that could have some outperformance that analyst community at large is at least set a bit. let's dig into more of these consumer names, and the ones where you might want to have in your portfolio joining me is managing director at rbc capital markets nick, good morning, and thank you for joining us what is your top pick in consumer staples, nick >> yeah. our top pick, dom, is constellation brands the stock has been a little rocky over the last six months or so. we think that's the opportunity that investors should be looking at in terms of adding or, you know, building on positions on

the stock. >> is cannabis the future, oorks do we focus on the mosh traditional lines of business there at constellation >> yeah. you really this i about it, their core beer business, while the beer industry is struggling, it's growing its top line high single digits. they're gaining share and new shelf space. constill ag has a narrow portfolio. they're expanding their offerings across a range of different subsegments like flavored alcohol beverages and spiked seltzer, et cetera, et cetera those are the categories that

are growing very well in beer right now. what we say is, hey, the beer business itself is under valued. that's an up side call option depending how the market develops over the next couple of years. >> nick, let's stick with sin because tobacco is certainly one of those industries that's getting more in the cannabis as well what do you view about the tobacco side of things, and do you have a top pick there? >> yeah. altrea is the top idea there look, altrea has a 6% dividend yield. interest rates have kind of moderated in terms of the pace of going up. that's kbrofl a good thing for a high yield stock the more important thing is altria is doing a lot of interesting things in terms of evolving its portfolio they're taking a 35% stake in jule where, they can help them with some of the youth problems that have been in the headlines. altia is positioning themselves, again, for growth not just for now, but in the future now, the important thing on

altria is their core cigarette business is in pretty good shape. marlboro share declines have basically stopped. they're still getting good pricing. we're pretty comfortable with their earnings outlook over the next 12 to 24 months >> we have covered now beverage, alcohol. we've covered tobacco. we have sin out of the way any other parts of that consumer stapled spectrum that you find in terms of stocks that you like >> yeah. i mean, one thing i would say is our theme for this year is really what we call the second derivative theme, right? you have names that really have not been performing well at least last year things are getting less bad. sometimes the best way to make money is when things are getting less bad we think about a situation like energyizer again, very strong core business.

skbro we look at some of the more beaten down names that we think can start turning a corner over the next 12 months. >> all right nick, thank you so much for those thoughts on the consumer staples side of things our sector to watch of the day

>> you bet >> well, coming up next on the show, throwing shade nike doing some damage control after last night's big duke-north carolina basketball game, and puma had some choice words about it we'll explain. and changing the smartphone game samsung unveiling its newest gadgets, but it's going to cost a hefty price tag. when we return after this. for your heart...

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it is almost 5:44 a.m. eastern time 4:44 a.m. central time you are seeing a live shot of chicago where folks are just waking up and getting your day started. we are started here on worldwide exchange >> it is a hefty price tag the galaxy fold stole the show last night at samsung's launch event and at the main launch event in san francisco we are talking about a foldable phone that will set you back $1,980 the idea here is that it's a tab let and a smart to be in one it will measure 4.6 inches

you can expand it out to 7.3 inches you can have a big screen like a tablet where you could watch video and stream and you can also fold it up so it can fit into your pocket d.j. co called this a new category in smartphones touting it as a major innovation last night and yesterday. samsung also unveiling four new hand sets yesterday as part of its galaxy s-10 family including a 5g version those smartphones are a premium line that put it in direct competition with apple with the lowest line at the s10e starting at $749, and the price is going up from there. samsung saying these smartphones, especially the galaxy fold, will let the company bounce back, bring back sales in a smartphone industry, but there are some doubts this morning whether that can happen with the $2,000 price tag. >> all right elizabeth, what stood out to you from a consumer products standpoint i remember tweeting out this morning i am never a first mover when it comes to consumer products

was there anything that stood out about any of the new phones? not just the foldables >> so certainly the feature that stood out was the foldable, right? at the event last night, there was a lot of anticipation. there were a lot of fans that we saw who were excited about this product and essentially were willing to pay the hefty price because this is something that is so new. on the s10 line-up, a lot of talk about the category and about the camera a lot of talk about this -- the touch screen that is next level technology with the stuch screen ultimately, the question is if all the people are willing to pay these prices for the devices that incrementally the fold is new generation the s10ing a little less so compared to some of the other innovations we've seen from competitors. one of the other main features was power share. you could charge your phone on top of a samsung device using

without any cords. that's a feature that huawei had relusd earlier in the year a lot of doubt by some excitement by some we'll have to see how the sales come in. they're expected to go on sale later this month, and then the fold will be on sale april 26 in the suts >> elizabeth, i still have an iphone 6, so that just tells you a little bit more about how i'm excited. elizabeth schultzy live in london thanks for that update on samsung. time for the morning's top trending stories frank holland is back. frank, zion, we were just talking about this >> we were just talking about it just yesterday one of the things we talked about was amateur athletics. this young man had an injury we're going to get right to it dunk lost its freshman superstar zion williamson less than a minute into the rivalry game against university of north carolina take a look right here williamson playing hard with his left foot blowing out his nike basketball show, falling down and twisting his knee. you see him limping off the court right here here's a replay of the injury. he was able to walk off the court under his own power. he was treated for what's being

called a mild knee sprain. now nike is doing damage control. the company releasing a statement saying we're obviously concerned and want to wish zion a speedy recovery. the quality and performance of our products are of utmost importance this is an isolated occurrence we are working to identify the issue. serious situation there if he had been even more hurt, of course meanwhile, nike's rival, puma, well, i guess they could have resisted, but they didn't resist throwing some shade tweet and then deleting, as often happens on social media. wouldn't have happened in the pumas. unnecessary. >> nike shares a bit lower i'm not sure how much -- i mean, certainly that plays into the thesis for the trade i'm not sure how much of that trade is driven strictly by zion's incident on the field -- or on the court. it does bring into the light the idea that when it comes to amateur athletics at this level, it could be a very big deal. especially on a national stage in primetime

>> well, there's commercials that were bought for this slot because you thought zion williamson will be playing for all 40 minutes or at least 35 of them i'm sure there are sponsors that signed up to be part of this broadcast. of course, there's also just the human factor his career could have been in jeopardy right there, and if we're looking at it from a business angle, nike shares down a little bit bad publicity certainly, but as you said, that couldn't be the only factor. >> i'm sure there are quite a few north carolina grads in our newsroom that are slightly happy with the results of the game overall. >> the game. >> not necessarily with zion williamson's injury. >> never want to see anybody get hurt >> though. new this morning, the insurance institute for highway safety is out with a new study detailing just how well automatic braking works in vehicle.

the stess come as pedestrian fatalities in the u.s. are close to a record high you can see the full list of the results right now on cnbc.com. >> all right a huge development there we'll see if that changes technology-wise going forward for the pedestrians. thank you very much, frank coming up next on the show, the trade bump the u.s. and china could be one step closer to hammering out a big deal what that means for you and your money when worldwide exchange returns after this

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trade talks continue between the united states and china. positive headlines coming out of those talks. they are moving the markets in some way futures right now pointing to a slightly higher open with the dow slated open up by about 35 points the s&p up by about three. the nasdaq up by just around 17 points that's your market setup

let's bring in james lou, founder and head of research at clearnomics. james, we've noted that the optimism in markets. >> of course, the markets is in both directions on change. that's incredibly optimistic it means they're coming to the table and potentially something is going to happen really the issue for markets is more about the uncertainty that actually what's been the deals at this point. so much is priced in if something can get done along the lines of something in mexico having gotten done or the trade deal having gotten done, and the talks elsewhere around the world, then that's probably a

further boost to the markets as well uncertainty gets lifted from the trade talks. snoo generally speaking the markets are up are we in an environment where investors feel much better about the situation? >> yes as you know, since it turned on a dime in this market, and i think the right perspective is if you take a look at the last two years the market is up 25% that's a spectacular return. you have these big swings, but in general the economy is still very healthy here. i think if there's any sort of cause for concern, it's that potentially too much of this rally is driven by central bank easing or backing the foot off the pedal. you do have this slightly dovish shift in tone from the fed

we had the fed minister come out yesterday. you think about the janet yellen fed and the operative term there was data dependent, the term is more of patient fed. that's essential boosted the mark as well you know, i think we should be a bit cautious in this time period both in the u.s. market value wags are by no means stretched you have much better valuations and much better market potential in other parts of the world. >> are you jernly positive or negative on the u.s. economy >> generally positive. i think there are two things to think about. one is that the economy is, in fact, slowing down >> people are worried, but really, we're still around 0% in terms of the real inflation adjusted fed funds rate, and that's really unprecedented. are uf will i peek speaking, the u.s. economy still looks fine.

if you look at international markets, we are seeing slowdowns there. again, those markets are so much more lower valuations in terms of attractiveness that we still think that they can have much higher potential versus the u.s. in the u.s. even if we slow down, we're still seeing about 5% to 6% earnings growth rates over the next 12 months, and over the course of 2019. if you can get those types of earnings growth rates, that can still support the markets. >> james lou, thank you for that you are constructive on the markets overall. >> es. >> coming up on the show later

on, that's it for worldwide exchange sidewalks box picks up all the market coverage. we have a market that's moving higher mbs l see if the optimistic nuerand optimistic issues on trade are still the case this morning. ♪ wake up sweetie. ♪ doctor dave. ♪ here's your order. applebee's to go. now that's eatin' good in the neighborhood.

progress in the trade war. new reports say that the u.s. and china have started to outline commitments on some of the biggest stiging points >> lyft could reportedly file for an ipo as soon as next week. we'll tell you when shares of the ride-hailing company could start trading. and a disaster for nike after a shoe blowout injured college basketball's biggest star at one of the biggest games with some of the highest priced tickets even witnessed by president obama.

it doesn't bode well for nike landing the most coveted nba rookie shoe deal in years. it is thursday, february 21st, 2019 "squawk box" begins right now. good morning welcome to "squawk box." becky quick is off today take a look at u.s. equity futures at this hour we'll show you what's going on dow jones looks like it would open up 46 points higher nasdaq looking to open higher as well about 22 points higher the s&p 50000 up close to five points some of this off of, as we have off the screen here, a little bit of hope on china trade, but we're going to see about that. we'll have more of a conversation in just a moment. let's just show you what's happening overnight in asia. a little bit of movement there