it is 5:00 a.m. at cnbc global headquarters, and here's your five 5k9. trade front and center as high level talks between the u.s. and china wrap up in washington d.c. we'll take you there live straight ahead rally or retreat stocks in a holding pattern as investors await the outcome of those tense trade negotiations kraft heinz plunges after the company slashes its dividend and says it's been subpoenaed by the s.e.c. pinterest reportedly filing plans to go public we'll tell you what the jaw-dropping valuation is and what it's seeking. and return to sender stamps.com

losing nearly half of its value overnight. just what happened it is friday, february 22nd, and worldwide exchange begins right now. ♪ oh, yes, wait a minute, mr. postman ♪ ♪ wait, mr. postman ♪ wait, mr. postman >> good morning. welcome to worldwide exchange. i'm dominic chu. brian sullivan is off today. you are seeing a live shot of washington d.c., our nation's capital, where trade talks between the u.s. and china will kick into high gear today. we're going to have more on that in just one moment first, a check on the markets and how they are setting up on this friday. futures pointing to a higher open right now with the dow indicated higher by about 74 points the s&p up by about seven, and the narks up by just around 19 on the european side of things, we are seeing that positive play out as well. green pretty much across the screen the jerlan dax up. the ftse 100 in the u.k. up

about .25% as well modest gains, but still green across the screen. asia, best week for chinese stocks in three years. we did see the hang seng in hong kong up by twol-thirds of is 1%. the main shining high composite up by 2% flat on the kos pi in south korea. the nikkei and japan, the notable laying adviser down by .2%. now, to your top story this morning. we've got trade. high level talks between the u.s. and china are wrapping up today in d.c we have full team coverage of the high stakes negotiations it. eunice is live on the ground in beige, but, first, let's begin with tracie potts live in d.c. with the latest. >> good morning. cnbc has confirmed that president trump will actually meet with china's top trade negotiator this afternoon. there are a lot of things going on behind the scenes, but this is a pretty high level meeting, and significant given the fact that these tariffs are supposed to kick in next month between the u.s. and china on $200

billion worth of chinese goods going up from 10% to 25% the u.s. and china have been trying to work on some sort of deal to prevent that from happening. president trump says it's not a magical deadline, march 1st. today he will sit down with china's top trade negotiator to talk about how they can do that. china has offered to buy more u.s. agriculture agricultural products. the u.s. on the other hand wants china to control and stabilize its currency it looks like there may be some sort of deal in the works. we're hearing about memos of understanding and a number of different yashz. tech, intellectual property rights going on behind the scenes, but this high level meeting today is one to watch. >> tracie potts, thank you for that update on chinese and u.s. trade negotiations let's switch gears to the reaction on the ground in china. eunice, how is this being viewed by the government and the press

in china >> well, state and social media, dom, have been playing up the fact that the chinese vice premier who is the top negotiator on the chinese side has been granted what they've described as special envoy status for this trip he is known as a bit of a reformer, an international circles. he is an important ally of president xi jing ping, and this new title for this trip has been raising expectations that vice premier liu has been granted extra powers in order to make compromises for a trade deal now, what those compromises are is still very much unknown even though it appears as though the two sides are making some progress, as tracist was talking about. the structural issues are still quite an issue also, an enforcement mechanism is still unclear exactly how all of that would play out though as tracie had mentioned, it looks as though the chinese have made greater offers for bigger purchases of american

goods and more particularly in the agricultural sector to the tune, dom, of $30 billion a year when it comes to certain u.s. crops. >> we know the broad strokes of the main five or six points of the memorandum of understanding that is going on i'm curious, though, how it's playing out among the media circles in china yes, the big cavat here, of course, is that the media is controlled by the government in china, but how exactly is the story playing out there? >> i think what's interesting is that the state media appears to be showing signs that the chinese are feeling even more confident up until now the tone has been the state news agency was posted a couple of comments on their social media account, which were really interesting they said that the atmosphere is good for the talks, and the u.s. appears to be well prepared, and

that trade representative robert lightheizer, who the chinese have generally been approaching with some apprehension and wariness, they said that he is looking relaxed and smiling. because of the optimistic tone, it could be part of what appears to be a greater effort by beijing to reassure its people that it looks as though the trade war could very soon be over dom. >> all right a sense of positivity among not just the u.s. government but the chinese government as well as we see the representatives of the u.s. trade delegation there. thank you very much, eunice yoon live in china. >> larry, you heard what eunice and tracie talked about with regard to u.s. developments on china trade. is this generally speaking a green light for the bulls in the market >> well, george soros has said over the years achieving gains

in the market or alpha, it's about discounting the obvious and placing capital in the direction of the unexpected. this is groundhog day. i mean, we have had headline after headline for two, three weeks a month about this deal. >> we were aggressive buyers a lot of this has played out how advertising a successful deal do we have to have before we have to start questioning what's priced in >> what is priced in then? i mean, you mentioned the fact that you have seen emerging markets rally fairly strongly since the december 24th lows you have mentioned that weave seen some developments with regard to, you know, the types of investments investors are gravitating more towards the bullish side and more cyclical sides of things

has it run its course for now, or is there a chance that we could see another headline that pushes things even higher? >> okay. here's one of the cavats that we've been sharing with our clients. there are certain things that can be done here which will be done i'm very confident of a deal you are most likely to get a happy meal and not a big mac right now it's pretty clear that the market is looking for something more the bottom line is if they do a deal, say, with some agricultural agreements, but if the intellectual property portfolio of achievements that mr. lightheizer wants is pushed out to june and then have you an extension of the carrot and a stick and some leverage over china, right, so you can't just extend it to june without some leverage, right? net, net, net, equities in the

u.s. globally will not like that at all >> you mentioned before this idea of putting capital to work where there is the unexpected. what is the unexpected right now in this scenario for the markets, and are we adequately pricing things i only say this because the lowest levels we've seen in a long time. it doesn't feel as though there is any kind of real issue or panic in the marketplace >> the spread between bmw and general motors is something that we haven't seen in probably 20 years in terms of underperformance of european equities, european banks, european automakers. they've been hit with a triple whammy, right? they've been hit with a china trade problem. they've been hit with global economic slowdown. the fed balance sheet. they've been hit with auto tariffs. if you want to play some capital in the direction of the

unexpected, buy some european automakers >> european automakers that's where we could find some of that. larry mcdomd, thank you very much for your thoughts this morning on china trade and everything else in the markets now to your top corporate story. kraft heinz, shares of the food company plunging to say the very least. what you are seeing there is a 21% drop in the shares in premarket trading so far frank holland has more on that story. frank. >> well, dom, kraft heinz is you should pressure due to three big issues it missed on the top and bottom line in the fourth quarter it's slashing its ividend, and it disclosed it received a subpoena from the s.e.c. that subpoena is related to the company's accounting policies. kraft says it's fully cooperating with the s.e.c. and is approving its internal controls to prevent something like that from happening again as for the dividend cut, craft heinz is chopping its quarterly dividend by one-third. the company also announcing a $15 billion write down of some of its marquee brands like oscar meyer. warren buffett's brookshire hat away and cg capital are two of

the largest shshls of the stock. a steep drop here. this stock down almost 21% this morning. >> brock hire hathaway and 3g around half of the overall holdings in that particular company. thank you very much, frank holland. pinterest has reportedly confidently filed for an initial public offering. the social media company is looking for a valuation of at least $12 billion. pinterest is one of several tech names expected to go public this year we've also got uber, lyft, post mates. they've all reportedly filed their own paperwork for an initial public offering. switching gears to a big exit in the sea suite. rascof is out. he will be replaced by former ceo rich barton. rascoff has served as zillow's ceo for a decade premarket trading up by 6% we are just getting started

here on worldwide exchange coming up next, betting on biotech. the sector seeing some major gains this year, so what could be the next big thing for biotech investors? we'll discuss. and, later, hidden global gems the top three under the radar markets you may want to work into your portfolio. we'll tell you what they are bh worldwide exchange returns after this the ibm cloud. the cloud that proactively protects your business from threats, instead of just reacting to them. that lets you modernize and move more of your apps without re-writing. that unlocks insights from all your data and puts it to work with ai. get a faster, more secure journey to the cloud. the ibm cloud. the cloud for smarter business. ♪ ♪ (danny) after a long day of hard work... ...you have to do more work?

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it's 6:14 p.m. eastern time. you are seeing a live shot of hong kong. it is nearly, what i'm told, 70 degrees out there and foggy. much warmer than it is here in new york city in the area. aun twaun is chairman and managing partner at -- his firm invests in start-ups, spin-offs, and turn-around projects and specialize in the area of life sciences good morning, antoine. thank you very much for joining us take us through what you're thinking right now are you still very bullish about

the prospects for biotech in 2019 >> thanks, dominic, for having me from paris. yes, we are clearly optimistic i think, you know, life sense is an area where in general people die, and they would rather not if you bring the drugs to market, you have a market, and, therefore, there's an interest in this space. biotech, as you said, has been incredibly booming, because the small companies that have been bringing products to market, in fact, 18 has been the record year of products brought -- agreed by the fda, so just as a symbol of the fact that, you know, this industry is actually producing results. >> anton, where do you see the most positive development coming out? in what areas in life sciences we focus so much on things like diabetes we focus on cancer

is it drugs, novel type diseases where exactly do you think there will be the opportunity for investors that the most impressive ones at least in 2019 >> well, i guess oncology will remain probably the number one sector for a very good reason. people die of cancer there's huge demand here there's a lot of innovation and new things have been done, but, still, i think a lot needs to be done i think here the complexity of the area is such that you need to be careful what you do. again, biotech is especially -- if you find the right drugs, the right management team to manage from early stage to later stage, then i think you can -- oncology clearly is an area of interest i would say my number two would be euro degeneration, alzheimer, parkinson's. the aging population

for a long time and still today to a certain extent, the brain is sort of a black box, and i think, you know, the new advances in imageing and in understanding how the brain works, i think, is starting to bring some fruit surgery between the sheer -- >> we know that the testing and trial process is complex so is the government regulatory structure behind it. not just in the u.s., but europe and asia as well when you as a vc investor look at putting money into a company to invest, what exactly are you looking for primarily? what gives you the best odds of success for a company to succeed or get bought out by another large cap company? >> you said it this is a business where, in fact, the risk development is

there. let's not be delusional about it i think if you, a, concentrate on great science, okay, that needs to be the case to start with, and make sure you also do what we call the killing experiments. being the real experiments before you actually bring this product to human clinical trials that really define is this going to be something big. if i not going to be something big, then just not, you know, kill it. don't develop it i think that's one of the things that is sort of the learning that i have had and something for the last 20 years. just to kill early those companies that are not going to be the winners because ultimately, you know, one of the things we cannot forget in the biotech business, it's not like internet or some other sectors you have lives of patients in your hands, and ultimately, you're trying to develop products to save patients' lives. you know, whateveryou can do t concentrate all the efforts early to define whether that's going to be a big one, i think that's where you need to pay attention. what makes that possible and i

guess the case in most industries is management you know, for the same science, the same great innovation, you have proper management, this is what will lead you to success or an early defeat. defeat is okay in that space you need to start often and then make sure you consequence drat on t -- concentrate on the winners how do investors like yourself and others avoid the next theranos it was a high profile flop it was in biotech and life sciences what do you do or how can you avoid that >> i'm not an insider of the story. i've read the book, like a lot of people. i have spoken to a lot of people that actually saw the plan early on and said no one of the things that i find just remarkable is that there was not one single specialist health care venture capitalist in the capital of the company. as i said earlier, this is a

field of specialists in the digital world you can fake it until you make it. in the biotech world, you cannot do that. for a primary reason that's that you have the health of patients in your hand i would say if you don't fake it until you make it, you need to make it until you break it probably you know, as i said, if it doesn't work, just don't develop it that's one of the major things we learn from theranos and other stories. don't develop something that's not going to be working for patients zlo fascinating subject. something everybody is concerned about, their health. thank you very much for joining us live from paris this morning. >> you're welcome. thank you. well, coming up next on the show, drop box's big drop. the cloud company deep in the red this morning we are going to tell you why hollywood flying high. this year's 100,000 oscar swag bags could have some celebrities seeing some green. we'll explain when worldwide exchange returns after this eabrk. servicenow put our workflows in the cloud.

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welcome back to the show we have a big upgrade just crossing now jeffries analysts are upgrading shares of citigroup to a buy from a prior hold rating the firm thinks the bank will see better revenue growth this year jeffries upping its price target as well on the stock to $73 a share. citi is up about 23% over the course of this year-to-date period alone let's check on some of the

other big movers this morning in stocks stamps.com down nearly 50% yes, that is half. the company is ending its exclusive partnership with the u.s. postal service. stamps.com says it will still be able to sell stamps but will also pursue relationships with other carriers, besides the post office as well develop box -- upbeat revenue guidance, but shares are down today the cloud company did expect a drop in first quarter operating margins. that's hitting those shares down by 10% roku is expecting to report a better than $1 billion in sales. shares up a staggering 75% already going to the course of 2019, and it's a big move higher about 5% so far in the premarket. let's get a check on the top headlines this morning francis riviera live in the new york newsroom with the latest. good morning, francis, and happy friday >> happy friday to you, dom.

we start with the news that came skrashing down for jussie smollett yesterday chicago police arrested him for orchestrating his own attack he was charged with a felony police say he planned a hoax because he was unhappy with his salary and wanted to promote his career the actor was released on $100,000 bail. long-time trump political advisor roger stone who is charged with lying to congress and witness tampering has been silenced by a federal judge after posting an instagram picture showing that judge along side an image of crosshairs. stone has now banned from any public statements about his case a very rare sight in los angeles. people there are declaring a snow-mageddon and sharing photos of the photo surprise. a cold front from canada caused temperatures to drop above malibu officials warn slippery roads and urging people to drive safely flagstaff, arizona, broke their all-time daily record for snowfall with 31.6 inches of snow

the previous record was set in 1915 back to you. >> a role reversal it was 55 degrees here in the new york area, right, francis? it's snowing in l.a. >> oscars coming up with snow boots. >> that could be part of the swag bag have a nice weekend. still ahead on the show, trade talks take center stage. high level talks between the u.s. and china kicking into high gear in washington wash. we'll take you there live straight ahead later on a golden opportunity is another mega gold deal in the works. we'll try on get some answer whz isur aere exchange retnsft th 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... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory.

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simple. easy. awesome. xfinity the future of awesome. zpleench trade front and center as high level talks kick into high gear in washington wash we'll take you there live straight ahead space-ex another rocket in outer space. we'll tul you what it is going to do. friday, february 22nd. you are watching worldwide exchange right here on cnbc. good morning welcome to "worldwide exexchang"

let's kick off the second half of the show with the executive recap. frank holland is back with the headlines. >> here's what's leading cnbc.com right now shares of kraft heinz down more than 25% this after the company slashed its dividend and announced it's received a sun from the s.e.c. the company says that subpoena is part of an investigation into the company's accounting policies and it's cooperating fully. big social media news. pinterest has reportedly confidentially filed for an ipo. the "wall street journal" says the social media company is looking for a valuation of at least $12 billion. there could be another mega gold deal in the works. the world's second biggest gold producer barrett gold is reportedly exploring a hostile take-over bid for new -- canada's global mail newspaper says that deal could be worth roughly $19 billion. back to you. >> that's a big deal if it comes to fruition. thank you very much. to yub top story this morning. it's trade high level talks between the u.s. and china kick into high

gear today in washington let's get straight to kayla with the latest details good morning they will continue into today as the u.s. and china try to figure out whether they can meet a deal by this march 1st deadline we know that today president trump is preparing to meet liu he, the special envoy and vice premier of china who received the special envoy title yet again, meaning he can negotiate on the behalf of the president of china last month when liu he met, he presented a letter from president xi himself and offered to buy soy beans sarah sanders declined to indicate whether the meeting signals an announcement, but that's what we are expecting

china has offered to increase its prchds of agricultural and energy products, but china's practice of subsidyizing state companies to disadvantage multi-nationals, that's in focus. the "wall street journal" reports china offered to stop the subsidies, but didn't produce any detail on which ones it would stop. dom, there is still pressure on each side to make a deal here. that pressure is high. especially with that deadline approaching. we will see what this deal looks like and if, in fact, we get an announcement today >> so, kayla, we mentioned -- we just showed those six points -- the six memorandum of understanding sticking points. the force technology transfer issue, the idea of intellectual property rights have always been put forth as the most important and critical points to these discussions. is there any indication that we are seeing substantive developments on either of those fronts

>> beyond saying that is how our economy works here, china has been unwilling to make the drastic changes that the administration had been seeking in the beginning whether the two sides were able to reach some middle ground that produced an agreement that would have any teeth in it that would be enforceable, we're still waiting to see of course, there are critics on the outside who say any deal reached in this short period of time couldn't possibly be the type of kprens i deal that would be needed to deal with the chinese relationship going forward, but we wait and see >> kayla, there's still some runway before march 1st. what are the next steps and what can we expect to hear? we know this idea that will happen today between liu he and president trump. what can you foresee as being possibly the way it plays out the next step. >> there's a week between now and march 1st, dom, but there's less time than that for the high level officials.

president trump will be going to vietnam to meet with north korea's kim jong un next week certainly that would need to happen in the next few days if he is going to sign off. is he the only witness he will get grilled. he will need to have answers some of the loose ends will need to be tied up. then, finally accident importers who are trying to figure out what their trade and what their goods orders look like in the next week. they need to have some clarity by tuesday otherwise, there will be ships on the water that are arriving from the shores of the u.s. or china, and unclear what the price will be once they arrive there. >> lots of stuff on the agenda a lot of it, of course, hinging on whether or not we can meet this march 1st trade deadline deal thank you so much, kayla, live in washington d.c.

zoo heard kayla's update are you opt knicks is this a time that investors out there should be putting more money into the market? you are seeing this on trade optimism >> well, dom, certainly the news is encouraging, but as you and kayla just pointed out, there's some pretty big differences that remain particularly in that intellectual property area i am investing a little more cautiously i'm advising clients to invest a little more cautiously certainly, we can get into the specific of that i'm not ready to declare the trade war over quite yet >> let's get into the specifics then where exactly are you seeing the ability to put more money towards this kind of a market, given the fact we've already seen a sharp run-up in prices? >> well, i would definitely endorse clients putting money moreinto the small cap growth area versus the large cap value area primarily because the large caps are -- tend to be

multi-nationals. obviously the smap cap arena tends to operate more domestically, and it's not impacted quite as much as the large cap multi-nationals are. that's certainly one area that -- of discussion that i would be looking at. the other one just for u.s. investors in general, i would be underweighting the international sector i wouldn't be avoiding it altogether, but certainly if trade frictions continue, and i -- you know, i don't -- as i said, i don't think this trade war is over yet. i think we will see more bumps in the road related to trade as we go forward. those are really a couple of areas strictly related to trade that i would be doing right now. >> those bumps on the road with regard to trade, rob, could provide for a rockier market ets, we are not seeing that today. the volatility index continues to lange wish. nobody thinks that we have

anything bad coming up in the marketplace. where exactly are the caution signs? where exactly would you be more worried outside of the idea that we could possibly get a negative trade deadline >> well, and certainly trade is a big area where some negative surprises could happen i think another -- another area to look at that is continuing to watch the fed. it seemed like from the last meeting that the market's interpretation of what happened at the last fed meeting is that the fed is just as likely to cut rates as to raise rates. they're now saying data dependent, and a bunch of fed governors are at the monetary forum today, and who knows what they'll say. they have been hinting that, hey, markets, there is still an upward bias to rates here.

i think that would be a real jolt if the fed basically at some point this year continued with the rate hike campaign. i mean, aus ensibly they are supposed to raise rates twice this year, once next year, and i think that if they actually continue with that, that would certainly jolt the markets a little bit as well >> there's a big debate playing out right now about whether or not there is a marked and noteworthy slowdown in the global economy we are seeing specific examples of places in asia, specific examples in europe, especially in germany, so where do you stand on this? should we fear from a market standpoint the slowdown that we are seeing in places like europe, asia, and perhaps even in the u.s. in some capacity

>>. >> leading indicators have been showing softening. i think it bears watching, certainly, but at the same time i'm of the camp or in the camp that i wouldn't think that a recession is right on the horizon. i think that we're just seeing slowing growth and maybe market watchers will start talking about a soft landing, but i don't see a recession otherwise. >> all right a little bit more constructive rob morgan, thank you for joining us this morning. >> my pleasure thank you. >> the top trending stories. frank has those. >> we have a super trending today. we were talking about super sweet 16 parties this one is pretty super sweet space ex launching its rocket overnight. it was carrying a satellite offering services like internet connectivity, voice communications, and video distribution to indonesia. the rocket is also carrying an

israeli lunar lander >> you can never get too tired of seeing rocket launches. >> it's pretty cool. >> they are really cool, right >> i mean, visually they're really cool. scientifically if you are a science person, they're amazing. the physics and everything else. this is cool this is the first private ever to land on the moon. it's actually a nonprofit out of israel doing it. it's not a government effort it's cool. >> moving on to sports, the 2020 olympic games in tokyo will see three new events surfing, climbing, and skateboarding. olympic organizers, they are not done just yet. the ioc will decide by the end of next year whether to add break dancing as a sport >> come on >> to the 2024 paris games break dancing has already been a part of youth olympic games. >> i guess it's not unforeseeable as we're watching some unbelievable dancing. those moves -- >> amazing >> it is

i have no athletic ability whatsoever, so that also fascinates me. you know, you already have floor exercise in gymnastics this isn't too much of a leap. >> they have rhythmic gymnastics with the rebon, aibbon, so how t is this? >> i could see it happening. >> i could see it happening too. it would be a cool addition. value of this year's oscar swag bag might be a little higher than usual. not just the value though they could be worth over $100,000 cbd beauty products and a membership to the first pot-friendly social club >> the swag bag was already rich enough now you are going to throw in cannabis products. this could -- i can see why it's a trending story >> absolutely. >> i think it might be part of the cannabis's -- cannabis business's efforts to main

stream celebrities are using it, and it destigmatizes it people are, like, if my favorite celebrities are going to use it, why can't i? >> the cannabis industry has a vested interest in seeing more people adopt their products. thank you for the trending stories. coming up next on the show, a world of hidden opportunities. not one, not two, but three under the radar global markets you should keep an eye on. we'll tell you what they are when worldwide exchange returns right after this ♪ wake up sweetie. ♪ doctor dave. ♪ here's your order. applebee's to go. now that's eatin' good in the neighborhood.

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welcome back to worldwide exchange let's get you up to speed on what's happening with the markets right now because we have seen a slight acceleration to the ep side in markets. the dow jones indicated to open higher by 59 points at this stable the s&p by about nine. the nasdaq up by just shy of 25 points we're coming up on a big weekend for hollywood. preparings are underway for sunday night's big oscar celebration and the focus will be on netflix. for the first time ever the company is up for a best picture award for its film "roma" and the film faces stiff competition from some of last year's big blockbusters, including black panther, bohemian rap soddy, and a star is born according to comscore revenues are down 22% compared to this time last year hollywood is hoping to turn

things around this weekend with new releases like lion's gate fighting with my family and universal's how to train your dragon, the hidden world universal part of the parent company of this net work that got us to thinking about the hilden world of opportunities for your money what are some of the under the radar global hot spots investors should be focussing in on? joining me now is tim seymour of seymour asset management also a fast money trader at cnbc tim, let's go around the world >> good morning. great segment. be love that >> right we're talking about a good movie from universal tim, let's go around the world and kick things off. where is your first hidden gem investment >> well, let's go to china, first of all i think it should maybe be somewhat viesing that that would be the first place i would go. it's well documented the chinese economy has been you should the strains of the trade war you've seen gdp pull back. bottom line for me is the chinese policymakers have

introduced tax cuts, triple r cuts, stimulus i think woef seen a massive eps downgrade revision cycle that probably, i think, coming to somewhat of a close. i think actually chinese gdp in the second half of the year will surprise people so much to the up side. it's going to run away from ou but i think the expectations here very, very poor i think the d rating cycle and thechinese big cap internet names has been nothing short of extraordinary. baidu reported the goidance wasn't great, but, again, the expectation is very low. valuations there, peg ratios are less than 1% for some of the biggest and highest growth companies in the world i think that's interesting >> all right let's go around the world again now. where is our next stop on our hidden world of investment opportunities? >> i think you have to go to latin america, and i think you have to go to brazil, and the reason for that is two-fold. democracy seems to be back in

somewhat of a western style. it's always going to be with a brazilian overtone the bottom line is if you think iron ore copper, coal prices overall the commodity space, if the dollar stays somewhat sideways we'll probably continue to be somewhat supportive. can i make an arg unlt that equities should be trading at 13.5 to 14 times based upon just the current cost of equity brazil has outperformed. i think we'll continue to outperform.

>> expectations for growth and essentially -- >> taking a lot of the trade war headline it's actually to performer the s&p by 200 basis points. i think also yourp even growth may have bottomed for the short-term if you have challenges in the banking sector, but if you look at the ewc as a way -- again i think you priced in an enormous amount of bad news i think actually for the short period it's probably bottomed. >> china, brazil, germany, those are tim's picks.

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or have recently received a vaccine. ask your doctor about tremfya®. tremfya®. because you deserve to stay clearer. janssen wants to help you explore cost support options. >> welcome back. what you are seeing is a lot of green, and a futures market in the u.s. that is at session highs right now. the dow jones indicated to open higher byabout 112 points. the s&p by about 11. the nasdaq up by 32. this does, again, represent the highest level of that futures trade so far this morning. a cnbc contributor does this rally off the

christmas eve lows still have legs >> the in a moment yum has been strong for a long time a lot of people pointing out that we are in statistically rare scenariosfor market moves above their moving averages. does that give you a bit of pause about what's happening right now? that anxiety, it's important to aunderstand that we run a lot of portfolio models it's been wildly fascinating to see the movement in the relative strength, but we're still consistently allocating towards the technology, the health care,

and believe it or not, utilities right now. that's really been lit up on our sector rotation. i think it's really understandable and investors have a second chance, right? in december a lot of people got caught off guard right now the market has repaired that damage here's a second chance to rotate out of sectors also, to dig down and find some. the real outperformance so far of small and midcap stocks even versus the s&p 50000 the dow despite their nice run-ups is there still a chance for opportunity in small and midcaps outperforming? >> wild ride moving forward. the real undercurrent -- i want

to bring it back to chicago. interesting in the market looks what's happened in the ten-year note it's interesting to see we go back to the data in november of 2018 we are seeing the lowest percentage of buyers primarily china and japan. until the fed actually raises rates, which i don't foresee any time soon, i think it's going to continue to see that trajectory. let's be honest, markets can't go straight up i think you will see them back fill watch the 200 day moving average. there's a big gap all the way down that's about 150 points of a gap or an air pocket, if you will. i think you have to be very mindful of that because a lot of stocks hide underneath that moving average >> always great to get your thoughts on the market thank you very much. have a nice weekend.

that's it for worldwide exchange let's get a check on markets again. session highs for the futures. dow indicated up by more than 100 points "squawk box" comes up next the latest innovation from xfinity

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>> again, taking center stage in washington president trump plans to meet with china's vice premier. a live report from d.c. is straight ahead kraft heinz plunging after the company slashed its dividend and says it's been subpoenaed by the s.e.c. and oscar myer. what a breakdown there.

>> fist, let's get a look at the u.s. equity futures. things are bouncing back after the declines of yesterday. yesterday, though, dow lost about 103 points this morning it's bouncing back by almost the same amount. s&p down by close to ten points, and, again, it's up by the same amount this morning. with the losses we saw