>> it is 5:00 a.m. at cnbc kbloebl headquarters, and here's your five at 5:00. breaking news, the iea's monthly oil report is just crossing the wires. we'll break down the big headlines. that's coming up straight ahead. boeing halting all deliveries of its 737 max planes following this weekend's deadly plane crash. two high level executives announce they are leaving facebook president trump putting the new timelines on a possible trade deal with china and the s.e.c. is suing volkswagen for "massive fraud. the full details on all of those

big stories ahead. it is friday, march 15th, 2019 good morning welcome to worldwide exchange. brian sullivan is off today. we are following a major developing breaking story out of new zealand. at least 49 people were killed and more than 48 others injured in a mass shooting event at two mosques. it happened as worshippers are rp attending friday prayers in the city of christ church. we will continue to follow the latest on this breaking story and bring you more as we get it.

in the meantime, we have some breaking news in the energy market as well the iea monthly oil report just crossing steve sedgwick is live in london with all of those details, and what are the big headlines, steve? >> yeah. very good morning. they let me in from the cold and the brexit story back to my bread and butter. look, this is very interesting the higher oil prices we've got in global markets at the moment and i'll remind everyone light sweet crude at drars 58.79, and brent trading around about $9 higher than that we're at the higher end of the recent range what is that doing to demand i can tell you, global oil demand slowed sharply in the fourth quarter of 2018 to .95 million barrels. it's due to lower ecb demand this could be about trade wars it could be about slowing europe it could be about slowing u.s. economy as well. perhaps another warning perhaps for those policymakers looking at monetary policy in the u.s. elsewhere as well. global estimates but growth in 2019 according to the iea, which is

the representation of the consumers, as opposed to opec, which is the producers, they are staying unchanged at 1.4 million barrels a day increase for 2019 as well. global oil production fell by 340,000 barrels a day in february why is this? this is because the opec members, despite the warnings from mr. trump, are trying to take a bit of oil off the table to prop up prices because they precipitously fell in the fourth quarter of last year that caught a lot of the oil producers very worried their budgetary requirements are up here, and the production level prices were down here. what i thought was fascinating was about the u.s. as we know, as opec and the non-opec allies, primarily russia, take oil off the table, the permian producers, the shale producers out of u.s., they put that production back on the table. they're ceding market share over at opec and giving that market

share in the -- they don't want to, but they're giving it to u.s. producers this is the fascinating point, i thought. u.s. sea-born oil trade moved into surplus now, that is extraordinary net exports rising at $4 million a day by 2024. that means opec is seeing a diminishing share of global sales. basically they get shut out of the u.s. market, and the says u.s. exporters becomes a meaningful reality at a time when, of course, shale is going up and up and up we heard this from exxon and chevron quite recently >> all right, big report steve sedgwick, thank you very much for that. let's get instant reaction to the big iea report joining me is nick coleman, senior oil analyst over at s&p global you heard what steve broke down in terms of the headlines there. what is your key take-away from this report given the fact that now remand is very much a big part of this equation for oil prices going forward as well >> snoo it rightly focussed in on the demand situation and the

slowdown in the oecd part of the world. the developed economies, and particularly the iea highlights europe as going through a really kind of fragile pattern, i would also talk about uncertainties in the euro zone area as well as in oecd my othertes heavy oil. they need electricity supplies to get the oil out of the ground, and so the iea has spent a lot of time looking at this and says this could be a real challenge for the oil markets.

sfla there's a direct interplay there, and i think that is something that would be occupying u.s. policy makers in a big way, but there is some good news in terms of security of supply, which is that opec producers in the gulf region also produce this heavy crude oil, and they actually have quite a lot of spare capacity, the iea is saying today.

because they've been cutting back on pruksz, countries like saudi arabia and iraq, you know, they do have the spare capacity to step in if as is quite possible, we see a really, you know, precipitous drop further in venezuela, and there are others out there willing to step into the gap they notice the russian exports of crude oil to the united states have actually increased quite significantly in the last month. russia also produces a fairly heavy crude oil, and that can take the place of the venezuelan crude. it's quite unusual for significant amounts of krushan crude to come into the united states i think that's quite an interesting thing to note. >> nick coleman, thank you for those thoughts on oil when that breaking iea report on the monthly oil coming out this morning. we appreciate it the company halting all deliveries of the 73 p max jets following this weekend's deadly

plane crash. frank holland joins us with the latest on those details. >> well, boeing shares are down slightly today the company announcing late yesterday it is pausing delivery of the 737 max jets due to that temporary grounding by the faa a spokesperson says boeing has not changed its rate of building 52 planes a month, but it continues to work through "production decisions. those include assessing how this situation will impact its production line and any potential capacity issues. most countries have stopped the 737 max 8 and 737 max 9 jets from flying following two deadly crashes involving the aircraft in the past six months manufacturers generally avoid halting and then ramping up production as this disrupts the supply chain, but having the to hold planes in storage can consume extra cash and increase inventory. companies pay the majority of their bill after they receive a jet. the 737 max jets will be grounded for weeks if want longer until a software upgrade can be tested, and then installed.

analysts estimate each month of this grounding could cost boeing up to $2.5 billion in delayed revenue, although that would be recouped once the planes are delivered. dom, over to you >> frank holland, thank you for that update on boeing. we're keeping an eye on shares of facebook as well. the social media giant announcing key executive departures let's get right to elizabeth schultzy in london with those details. elizabeth. >> hey good morning, dom. facebook losing its chief product officer and long-time employee chris cox as well as the head of what's app chris daniels. the two top executives' departures coming a week after facebook announced that new strategy focused on privacy and security now, chris cox saying in a statement posted yesterday the company's new focus on measures liken crypted messages is "a big project and we will need leaders whol are excited to see the new direction through. chris is one of facebook's first 15 engineers he has been it he company, worked his way up through the company, and played a crucial

role in building out facebook's news feed. he was also a close confidant of ceo mark zplukerberg zuckerberg saying in a note yesterday cox had wanted to leave for a few years, but stayed on to help work through various product issues last year instagram finders kevin and mike craiger left the company, citing concerns over the direction it was heading what's app's founders also departed over disagreements with mark zuckerberg last year. all of this raising concerns with investors about the way this direction of this company is heading with this new privacy focused initiative you can see that shares are down nearly 2% in extended hours so far today. dom, back to you >> elizabeth schultzy, thank you for that new this morning as well the s.e.c. is suing volkswagen and its formerwintercorn over t

massive diesel emissions skangds. the s.e.c. says volkswagen perpetrated a massive fraud and repeatedly lied to u.s. investors. volkswagen says the s.e.c. complaint is legally and factually flawed shares of volkswagen off by one-half of 1% we are just getting started on worldwide exchange coming up next, we're going global president trump hinting at a new trade deal timeline with china we'll bring you live from beijing and those details ahead. plus, hitting the pause button u.k. lawmakers making a big move to delay brexit. we're live on the ground in london when worldwide exchange returns after this

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open a new factory that they're forced to go up against a government-led review board, and as part of the licensing process, they have to give up a lot of proprietary information that proprietary information is leaked to chinese competitors. >> the businesscommunity here is very encouraged, they say, about the new development. the premier given an annual press conference, and he was saying he hoped that cyst u.s. and china would be able to overcome their differences to come up with a go ahead trade deal it became the highest ranking chinese official to address concerns growing concerns that

beijing is using technology of chinese companies such as huawei in order to spy on other countries. this is not consistent with chinese law. this is not how china behaves. we did not do that and will not do that in the future. on the economy the premier also outlined more measures to help stabilize growth, and he said the most important tool, dom, is going to be a reduction in taxes as well as social insurance fees those fees are going to be kicking in, the reductions on, may 1st, and the v.a.t. cuts take effect on april 1st.

>> it's a timeline for a trade deal getting done. >> there hasn't been any official word on what the time frame would be i also talked to some of my sources within the chinese delegation who said that, sorry, they weren't able to share that information with me, but there is definitely a concern that president xi could walk into a situation that the chinese saw that happened in hanoi where they might be able to have president xi in a ceremony with president trump and that president trump can pull the plug that is a situation that the chinese don't want to see, which is why we are hearing that they want to make sure that all the ducks are lined up in a row and that they are going through the trade deal line by line. >> seems to make sense eunice, thank you very much for that update. let's turn now from asia to europe where british lawmakers just made a big move to delay brexit this with just two weeks to go until the u.k. is slated to leave the european union

let's get out to wilhem marks. what are the latest deals on the brexit delay >> well, dom, what happened last night is that lawmakers voted by a pretty significant majority to request an extension of up to three months from the european union. that's something that theresa may, the prime minister will make next week when she travels to brussels. what she's trying to do is force some of the rebels inside her own conservative party to back her deal before then remember, this is a deal that's been twice voted on in the parliament behind me and twice defeated she was potentially looking to try and bring it back again for a third vote next week before she travels to brussels by pressurizing people who have concerns about a long delay to brexit into voting for the deal. that seems to be her tactic at this stable. we saw lawmakers also last night worth noting voting against a second referendum, although in a nonbinding way also, essentially voting against by a very narrow majority the

idea that parliament would take control of this process. her deal is still alive, dom, but we'll have to find out next week whether it will pass, and then we'll also find out the reaction from european leaders in brussels next week where we'll try to see whether they were to offer a short-term extension, a technical extension to get the legislation through or whether they'll try to demand a much longer one. >> let's bring in christian schultz, director of european economics at citi. christian, we're a little confused right now still about what exactly is going to happen. what is it that lawmakers in the u.k. want out of a brexit deal why can't they get something done >> well, if i knew well, there's two concerns here. there's one group. the anti-e.u. -- the anti-e.u. conservatives. they don't like the withdrawal agreement. they don't like, in particular,

this backstop that keeps the irish border open, which means that the whole of britain would have to stay in a customs union if they don't find another solution they think that is not real brexit or a clean cut. then there's the opposition. they actually -- they are fine with this backstop and with the agreement. what they don't like is what is called a political declaration on future trade relations. they think theresa may hasn't negotiated enough. the future relation isn't close enough they are rejecting this because of the lack of close relations with the e.u. and lack of detail in this political declaration. these two groups come together and vote against the deal, but they can't come together to vote on anything positive constructive for the future. this problem wouldn't even be resold if we finally do get the deal voted through next week.

>> it's much weaker than the euro zone or certainly in the u.s. last year we've had four quarters of falling business investment. that is a clear sign that unsesu uncertainty is weighing on corporate decisions. consumers don't seem to be concerned at all they're spending where it was. they actually are enjoying lower inflation because of cheaper oil. the labor market is booming. wage growth is picking up. the domestic demand is very positive business is down the combination gives you low productivity growth. that's bad for long-term u.k. growth in the short run the u.k. looks a little more resilient, in fact, than some of the continental european countries like jegermany or italy which shouldn't be affected by brexit so much. >> where will we see the most impact on the u.k. economy in the coming months given this idea that brexit may not be happening any time soon? >> well, it extends uncertainty,

right? as you pointed out, corporates aren't going to make the big decisions, the big investment decisions of the factories, the capitalist spending that you would hope they would be doing once certainty actually fades. at the same time demand remains there, so they have to keep supplying. that means we will probably continue seeing hiring and a labor market which is very, very tight. we probably see wage growth remaining high once we do have a deal, that may reverse. there may be more business investment coming if people may be spending more. at the same time they won't be needing quite as much staff anymore. productivity growth will go up, and is that creates a whole sort of tilt in the economy, which the bank of england will, of course, be watching very closely because at the moment they're looking at the economy with a tight labor market and potentially rising inflation, and that point they may be looking at an economy with bigger productivity growth and perhaps less inflationary pressures and more business investment which gives them a bit of time perhaps to make the next move in terms of hiking rates. >> thanks for the economic view

there. we appreciate it this morning. still ahead on the show, call it the kylie jenner effect. why shares of ulta beauty are sitting pretty this morning. we'll explain ahead. plus, gearing up for an ipo. new details on uber's highly anticipated public debut stick with us. worldwide exchange on cnbc will be right back. 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.

>> we a can't miss interview coming up later on this morning.

wells fargo ceo tim sloan sitting down with cnbc be sure to catch that interview 8:45 a.m. eastern time on "squawk box. again, a must see interview there. let's get a check on some of the big stock moves of this morning so far oracle lower today the company's third quarter earnings and revenue narrowly beating forecasts. revenue from cloud services and licensed supports was in line with estimates oracle expects revenue this quarter to be flat to down 2%. analysts were expecting a decline of 1%. those shares off by about 3.5% adobe systems posting better than expected first quarter results after the company's results were helped along by growth in its digital media business, which includes brands like photo shop. shares are down right now after the company said second quarter revenues will likely come in below analyst estimates. they're down by 2.5% ulta beauty's fourth quarter results beat forecasts they rose more than 9% the retailer says the launch of kylie jenner's makeup line drove

strong traffic to stores attracting more young and diverse shoppers those shares, it ulta, again, the exclusive partner for kylie cosmetics. they're up 4% in the premarket trade. in other corporate news uber is reportedly planning to kick off its ipo next month reuters said the ride hailing company will launch its road show in april. the ipo is expected to be one of the biggest tech debuts ever the "wall street journal" says uber's ipo could value the company at $120 billion. well, coming up next, leaving facebook a pair of high level departures to tell you about at the social media giant. the full details ahead and later on, a viral video alert. apple out with a new ad and it looks like they could be throwing some shade at some of their biggest tech rivals. we'll explain when worldwide exchange returns after this. this is your invitation to exhilaration.

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>> sheeting people in the al nuir mosque. four people have been taken into custody. three men and one woman. we will continue to follow the latest on this breaking and tragic story the more details that we get keep it right here in the meantime, let's get you up to speed on what else is happening out there. frank holland is back with your early morning headlines. good morning, frank.

>> hey, good morning again, dom. here's what's leading cnbc.com right now. boeing is halting all deliveries of its 737 max jets following this weekend's deadly plane crash in ethiopia. boeing says it will continue to build the 737 max jets during this pause boeing shares are slightly lower on that news two high level departures at facebook to tell you about the social media giant says its chief product officer chris cox and the head of what's app, chris daniels, are both leaving the company. cox had worked on some of facebook's most visible features, including the news feed facebook shares are down in the premarket trade. the s.e.c. is suing volkswagen and its former ceo martin wintercorn over the company's massive diesel emissions scandal. the s.e.c. says volkswagen "perpetrated a massive fraud and repeatedly lied to u.s. investors. volkswagen says the s.e.c. complaint is legally and factually flawed back to you. >> frank holland, thank you for those headlines. let's get a check on the early

market action. stock futures right now pointing to some fractional gains to start the day. the dow would open up by about 80 points if these gains hold into the opening bell. the s&p up by seven, and the nasdaq up by 27 points. joining me now is joe smith at cls investments joe, thank you very much for joining us this morning. what exactly can we expect to see in this marketplace given the fact that we just don't appear to be going anywhere

above this 2,800 to 2,815 level in the s&p 500 >> great to be here. so in terms of kind of what we're seeing out there today right now, i think it's just going to be more of the same in terms of kind of where the markets go from here you've clearly seen the fed at place where they don't necessarily need to take any type of policy action at this point. in fact, we see it in terms of -- they've actually taken quite a bit of a u-turn since the fourth quarter of last year. i think, you know, where market participants are at this point are really trying to focus on the fundamentals of underlying companies as well as to find areas or pockets of opportunities that represent reasonable growth. also for accounting for valuation. >> so where are those places then it seems like the perfect recipe you know, growth at a reasonable price. valuations that are there. potential up side. those are all things that i as an investor would want where are you finding those opportunities? >> great question. in terms of from a sector

standpoint, two areas that we currently are actually overweight in our portfolios are actually energy as well as real estate both clearly have lagged over the last year or so in terms of, you know, relative market performance, but when you think about kind of, you know, where we are in terms of the cycle, energy companies have definitely spent more of their time in terms of reinvesting in their businesses to drive down costs associated with their businesses, and we think about real estate despite the fact that we have seen some regional weakness in places like new york and san francisco, you also have to still take into account that relatively low interest rates are still a good driving factor for housing affordability going forward. >> okay. that's the bullish case. home builders, real estate, energy we can kind of see the thesis there. where exactly then would you stay away from which parts of the market do you think are the ones investors really need to just keep away from given the fact that the markets are where they are >> yeah. so in terms of kind of, you know, we're not necessarily thinking about it fray sector

standpoint, but rather, in terms of just, you know, what are the type of companies that really kind of represent, you know, some head winds in terms of where the markets are likely to go, and i think for us, we really kind of see that more in the way of more momentum or yebted stocks. stocks that, you know, clearly did benefit in terms of the rally over the last couple of years, but may not necessarily represent the best opportunities in terms of kind of growth going forward. we tend to actually like owning more higher quality names, but also, you know, companies that really trade at more reasonable discounts relative towards the market, and. not everything is with rose-colored glasses kwha kplk is the down side risk and what could drive it in your mind >> i think a lot of people are probably focused a little bit more in terms of kind of what's been the ongoing negotiations between the united states and china in terms of the trade war. we actually see in terms of kind of how market participants are looking at this, really in terms

of the fed and what the fed is likely to do to be a more accommodative in terms of policy going forward as being a key risk out there i think, you know, for where they are at this point they have taken a lot of steps to try to be a little bit more accommodative without necessarily signaling that rates could move lower in the future, but i think, you know, if they do continue to necessarily kind of project kind of more of the idea that rates could potentially go higher, i think you could probably see another similar scenario to like what we saw back in november >> you mentioned rates i'm not going to let you off the hook here. where are rates going, and how exactly do you position for that >> yes you know, i think in terms of how we've thought about positioning, you know, we actually see rates remaining a little bit more range-bound. clearly, the ten-year treasury yield at the end of november last year was roughly around 3.25 today more around the 270 range.

i think if you are an investor considering towards positioning towards rates, it doesn't necessarily hurt to move out a little bit further into the curve. you can kind of think about what's the best case scenario for you. you're going to be able to put the coupon and really kind of the worst case scenario if rates were to move up into unexpected amount of ip flags coming into play, you're not necessarily getting hit as much in terms of the overall punishment from rates. >> all right joe smith with a broad range of market thoughts. thank you very much for your joining us this morning. we appreciate it >> great thank you. >> pointing to yooefr seas risks and revising down its growth

forecast with short-term rates being held at minus 0.1%, and the ten-year government bond is 0%, it really extends japan's ultra loose monetary policy. it's the sixth year with not much to show, except tepid growth and a weak inflation picture. though the market reaction overall has been positive. since 2013 when japan kicked off the big quantitative easing experiment, the stock market is up 130%, and the currency, the japanese yen, has fallen about 35% against the u.s. dollar. analysts warn, though, that in this situation financial market performance is not always a good barometer for success. the question now is what happens going forward? there were some positive comments from the bank of japan governor he said the chances of overseas economies worsening further is low. he says it's a risk. however, the baseline scenario is for overseas economies to pick up in the latter half of the year he even pointed to china and europe

>> the impact on the u.k. and european union we have the united states showing some signs perhaps of a bit of a slowdown. take us through kind of the interplay or the interconnectedness of what's going on here. >> what's interesting is japan's experiment which kicked off in 2013 was in many ways used as a case study by other nations like the united states and europe adds a look at how monetary policy can be used to kick start growth and pick up inflation as we can see from the numbers today and from the statements from the bank of japan, those data points really haven't improved i think the big question is not just for japan, but even europe. how do you keep rates low for an extended period of time without having an outsized negative impact on the banks? >> a lot of questions. sima, thank you for that update on japan

upnext, new fall-out from the massive college emissions scandal. the latest details coming up ahead. plus, hitting the streets. tesla unveiling its new suv, but it will cost you the hefty price tag when worldwide exchange returns after this

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airpods. they're trying to say come back. >> and the recent example before this was that big banner ad at ces in las vegas talking maybe, again, throwing some shade at other tech rivals about how they guard your data and everything else apple has taken a very firm line on this. >> yes >> they want to be the company that is sin anonymous with not sharing your data at all with anybody. >> absolutely. tim cook going out of his way to make that point. >> absolutely. now to the fall-out over the continuing college admissions scandal which wealthy parents paid bribes and committed other types of fraud to get their kids into elite colleges. private equity firm tpg said it fired executive william mcglashan who was part of that scheme he said he resigned from tpg reportedly paid $25 thus to get his son admitted to usc. meanwhile, hallmark channel has parted ways with actress lori loughlin after she was arrested for her part of the scam she and her husband paid $500,000 in bribes to get their

daughters into usc meanwhile, hewlett-packard has removed an ad featuring loughlin and her daughter olivia jade sephora has ended a makeup partnership with olivia jade, and there are reports that owe live gentleman jade and her sister will withdraw from usc due to the fall-out from this entire skamgcandal >> the names associated with this when it first broke were stunning, but now there are other names within the world of sports, finance, and everywhere else, who have used college consulting services provided by rick singer, one of the people at the center of this, all saying that they have done so without being part of the fraud. you wonder the story certainly has a lot of layers. >> you just mentioned phil mickelson taking time out of playing in a marnl just to make it clear that he doesn't feel like he committed any fraud. this really shakes up people because we think of education as a meritocracy. to find out that some parents paid up to $75,000 for s.a.t. and a.c.t. scores, it

manipulates the thought that this is where we can level the playing field, and that amount of money is tuition for most families >> it is the reason why every water cooler in america has people circling it talking about this particular story. >> absolutely, dom now turning to something else that people are talking about. tesla debuting its new crossover suv in california last night it is called the model y the car has a different performance level starting at 230 miles of range and going up to 300 miles the standard model starts at $39,000, and the most expensive version will cost $60,000. deliveries will start in the fall of 2020 customers can place their preorders today with a refundable deposit of $2,500 >> frank holland, thank you for the trending stories we appreciate it in the world of sports, a triumpant return for duke basketball superstar zion williamson who was injured back in february. you remember this. he blew out his nike basketball shoes. that video there, of course, reverb rating all over social

media. williamson missed six games due to a knee injury, but the presumpti presumptivetive number one nba draft pick returned last night for the semifinals of the acc tournament he did not disappoint. williamson scored 29 points, 14 rebounds, and duke's victory over syracuse. we have one big upgrade crossing key bank upgrading amazon to an overweight from a prior equal weight the firm says the company is taking a number of operational moves to improve profitability in korea tail. key bank upping its price target on amazon stock to $2,100 per share. it's currently at $1,708 right now. amazon shares getting a nice pop in the premarket on that call up by about 1.25% still ahead on the show, the china factor the one big software company that is seeing a major slowdown overseas we'll bring you that name ahead. plus, hitting the road show. the new details this morning on uber's big plans to go public. stick with us. worldwide exchange will be right

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>> 5:50 a.m. eastern time. 4:50 a.m. central time that is a live shot of chicago it is still dark things are getting moving there. we'll get back out there in a couple of minutes. in other corporate news, uber is reportedly planning to kick off its ipo next month reuters says the ride hailing company will launch its road show in april. the ipo is expected to be one of the biggest tech debuts ever the "wall street journal" says uber's ipo could fetch a valuation of $120 billion for the company. let's get a check of some of the other top headlines and stock movers broadcom's first quarter earnings beating forecasts, but revenue came up shy. the chip maker says a slowdown in china is impacting demand, but broad comsays much of that

has already benefactored in. broad comis maintaining its full year outlook, and those shares are up 4.5% premarket. the s.e.c. is suing volkswagen and former ceo martin wintercorn over the company's massive diesel emissions scandal. the s.e.c. says vw perpetrated a massive fraud and repeatedly lied to u.s. investors volkswagen says the complaint is legally and factually flawed those shares up fractionally in european trading ulta beauty's fourth quarter results beating forecasts as same store sales rose 9% the launch of kylie jenner's makeup line drove strong traffic to its stores, attracting more young and diverse shoppers, and those shares up by 4% in the premarket. let's get another check on what's happening with futures right now because they are indicated higher you can see there the dow just up by 80 some points the s&p by about 7 the nasdaq up by 26. joining me now is jimmy, managing director, tjm

institutional services he is also a cnbc contributor. he is also in chicago. hence, my prior alugs. thank you very much. let's go through the market steps today. can we get above 2,815 in the s&p 500? >> okay. i don't like to be melo dramatic about this, but this is a critical level technically, and if you look back at the six-month chart, we've been turned around atthese exact same highs in october, november, and december you have to ask yourself, has the story changed now? is it different than what it was then the beginning part of november is when the fed began to pivot, and now at this point the market is not pricing in any more tightening as a matter of fact, they're pricing in the next move down the road that's definitely different. the other part of the story is the resolution of the china thing. after we've rallied 50 times on this same story, i'm not sure that has any more punch, but what i do think could get us above it, is we have an fomc meeting coming up in six days, i believe it is. if we start to believe that the fed is going to continue their

pivot, sound even a little more dovish, perhaps even get to where the market is, i think we can bust through it. it's amazing how we're consolidating right under these highs. if we go through it, i think it could be the harbinger of a much bigger move higher where. >> you are a trader. as you take a look at these levels of resistance, is it fair to say that folks like you are sitting there putting in orders to sell the market around these levels pretending or at least thinking that this will be a ceiling for the market and a significant one? like you said, four or five times we've been rejected from these levels >> absolutely. and yesterday, if you follow me on twitter, i had some long positions in that i had talked about over the last couple of weeks. i took most of them off yesterday. i'm still a little long going in here i've learned this lesson the hard way the third time back in december we got to these levels i didn't do that, and i ended up suffering for it

i think this is -- one of the reasons, by the way, is that when it keeps going, when it's the fourth time here, each time we touch it, the level becomes more and more significant. and more people probably doing like me and selling out of their positions and being less long coming into it that might be just the thing that keeps us consolidating here before we move higher. the fact that i'm -- i actually am and most other traders are zeroing out a little bit here probably means that we're just gathering steam to go above it, and that will be the next, you know -- the next round of powder in a -- dry powder to push it higher >> we're at five-month lows right now for the cbo volatility index. the last time we were at these levels, the markets were at record highs we are not at record highs now take us through that dynamic and stock market volatility given the fact that we're topping out here, but we still appear to be at these really, really depressed levels for volatility. >> right that just -- to me that means a level of overconfidence that's more broad, but it also creates

a big opportunity. for me the long positions that i'll structure once we do go through it, i'll take advantage of those cheap voluntarily tilts and use it in options instead of just having to buy the market. it creates an opportunity. when i see it at such low levels, and we've seen it stay at low levels for long periods of time, but to me that scares me a little bit because it definitely is an indication of some complace ensy, and we can come out of that with a bang at times. >> all right what's the catalyst for the upside take us through that >> okay. so i laugh when i even say it. i think it's an actual real life resolution of china, and i know that people out there are saying antihaven't we rallied on china 50 times yes, we have i'm really hoping there's one moreless push when the papers are signed and the hands are shook and we can put the whole thing behind us, but there's a key element to that, and that the fed can't pivot back to hawkish relatively quickly and say that china is resolved and the tariffs have been dropped.

we expect to be on more of a hawkish path there has to be a grace period >> all right, jimmy, thank you very much for the market thoughts we appreciate it that's it for wodwrlide exchange happy friday "squawk box" is next - my family and i did a fundraiser walk in honor of my dad, willy davis, who has alzheimer's. i decided to make shirts for the walk with custom ink. the shirts were so easy to design on the site. the custom ink team was super helpful and they just came out perfect. seeing my family wearing my shirts was such an amazing reminder of all the love and support that everyone has for my dad. - [narrator] check out our huge selection of custom t-shirts

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boeing's 737 max planes were already grounded now the company is suspending delivery of those new relatively new planes we'll talk to an analyst about the impact that will have on the stock, which has already been battered tesla unveiling its model y suv at an event late last night. we'll give you a look at the car and show you what elan musk said about demand and production. plus, a new ad campaign from apple taking a back-handed shot at some of its rivals. it's all about privacy we'll show you the ad and don't

beware the ides of march, march 15th it's scott's birthday. happy birthday, son. i hope you have a great one. "squawk box" begins right now. good morning, everybody. happy friday, and wack to "squawk box" here on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with joe kernan and andrew ross sorkin. our guest host for the next hour is steven grasso he is director of institutional sales at stewart frankel also, a fast money trader, and it's great to see you, steve >> great to see you guys thanks for having me >> let's check out the u.s. equity futures at this hour on from friday. yesterday you saw that the dow was up just barely up by 7 points s&p down just barely two it was down by two and a half points the nasdaq was off by 12 1/2 points what we're talking about now i