it is 5:00 a.m. here at cnbc global headquarters. here's your top five at 5. is the rally at risk the s&p 500 is on the longest win streak in more than a year will the up coming earnings season put the bulls to bed? hitting the road, pinterest kicking off the road show today. we'll find out how much the crafting company is looking to raise for its ipo. the world's biggest hedge fund manager saying american capitalism is not sustainable. we are digging in more an ray dahlia's shocking new comments. warren buffet waying in on who he would like to see or not see as wells fargo's next ceo.

the friendly skies apparently just got a little friendlier the new report out today could have many frequent flyers scratching their heads just a bit. it is monday, april 8th as "worldwide exchange" begins right now. ♪ ♪ good morning good afternoon good evening from wherever in the world you may be watching. welcome. i am brian sullivan. starting your week off with cnbc here's how your money in the global markets are starting their week off as well you can see a little bit of red here on the screen stock futures are slightly lower right now. keep this in mind. first quarter earnings season starting to creep closer kicks off at the end of the week, but keep in mind also just how far these markets have come. the s&p 500 in its first seven-day winning streak in 17 months the dow is now in its highest level since october of 2018. just 2% from its record high

the nasdaq 100, wow, only has had one down week all year pretty incredible. benchmark ten year bond also a big story as well. stocks have gone up. benchmark ten year notes still at a very low 2.49%. some buyers coming back into bonds as well. they're not just buying stocks or bonds they're buying oil oil continuing its climb higher as well. global inventories tightening up just a bit apparently the opec strategy is working. crude oil up a half a percent. 63.34. oil sitting at a five-month high looking around the world now, kind of a similar trade to our futures across asia and europe the asian markets mixed to slightly down and the european markets as well. a similar story as well. a little more red on the screen in europe than in asia we are seeing declines across the board for markets, not big, 2, .3 tenths the week is just beginning

anything can change based on the biggest events of the week for your money as we do every monday, here is your wor"worldwide exchange" we to watch today you get the factory orders and the imf pre-meetings tomorrow look for the jolts survey, that is the job open level turnover survey. how many jobs there are. levis, welcome to the public markets. their earnings kicking off on tuesday. on wednesday, it really is a double dose of central banking you have the european central bank decision in the morning and the fed minutes, basically what they talked about at their last meeting, on wednesday. plus a number of bank ceos are heading to capitol hill. cnbc will be there thursday you have the disney investor day and the indian elections. on friday do not go to sleep because it's the end of the

week it's brexit day. could they kick the can down the road or could they strike a deal that they all can agree on as we know, excuse me, good morning, it's early, bank earnings also kick off on friday as well. that is the setup for the news let's now get back to these red hot markets. barons chiming in again saying on their cover this bull market may have no expiration date. joining us is sven henrik, founder of north man trader. sven, listen it's sort of the curse of the cover. barons, i'll give them credit. they acknowledged it they poked fun at themselves if we're saying this on our cover, is that a bad sign, but it has been a pretty incredible market run you think it's surprising, don't you? >> i do. i mean, look, obviously we've got a massive run off the december lows and it does not stop you just mentioned yourself, some weakness.

almost no down weeks since the very beginning of the year and i start to wonder about the structure of it all because, yes, we knew we had the fed turning policy and, yes, we had obviously a lot of jobs from the side of the administration about a china deal, but how many times can you price in the same news item google stocks rising on positive trade rumors and you get dozens of responses it's crazy to say the same thing over and over. what i'm seeing structurally is a market that keeps gapping up on ever decreasing volume and that raises some questions about how long this is viable. you have to recognize how long this keeps going like this, you can keep going >> what to me is truly incredible is that it's not just our stocks, it's not just global stocks, it's not just bonds, it's everything. everything most commodities all stocks, bonds, they're all

higher i guess my fundamental question is, i don't know if you can answer this, sven, where is all this money and where are all these buyers coming from >> well, it's a very, very interesting question because actually when you look at fund flows, they're actually negative especially from the retail side. what we have had this year, this quarter, is obviously record buy backs again to the tune of $270 billion. keep in mind, this is kind of this running artificial liquidity programthat's been running since the beginning of 2018 we've had five quarters of over $1 trillion in buybacks. when you have a low volume environment, that tends to obviously exacerbate look at the structure of the market interday. typically what we see, we saw it on friday, a gap up and then markets stayed in a very tight range and the gap never gets retested so since beginning of the year we've now had seven unfilled

gaps on the s&p. gaps can remain unfilled but the more you keep building them, the more at risk a rally becomes subject to a technical reversal. >> yeah. i mean, i talked about the nasdaq 100, very widely watched index as well. has one down week all year, technically, sven, is there any sign that this market, the u.s. stock market in particular, is going to peter out >> you know, brian, i remember you coming here to london. we sat in this very studio here last summer and we were talking about some of these divergences and the fact that some of the tech stocks -- it was just a really thinning leadership in terms of who is driving the market we see some of this exact same thing now. basically in the q1, the nex was 35% of the gains came from three stocks, apple, amazon, microsoft. if you look at the chart here, now you see a pattern structure that's very similar to last summer, right? we have the steady liftup on

gaps, low volumes. this is called a rising wedge pattern broke to the down side and released a lot of energy we're seeing a wedge that is basically replaying the same thing except it's even steeper and it's becoming more narrower. at the same time we have volatility compression as i said last summer, these patterns can continue but watch when they break, because that's when you see a plunge coming out of the volatility compression. >> very interesting looking chart, but i would expect nothing less from you. sven henrik, thank you very much we'll talk to you soon. also new this morning, nissan shareholders potentially ousting carlos ghosn from that company. let's get to frank holland now with more on this morning's top story. >> voting overnight to remove carlos ghosn as chairman he was arrested that he used company money for personal use

nissan shares dropping 1%. pinterest news, kicking off the investor road show they're expected to price its ipo below the last valuation of $12 billion. pinterest is expected to go public next week. sticking with the ipo theme, lyft is accusing morgan of marketing products to pre-ipo investors to help them short the stock. morgan stanley denies any role. warren buffet is giving advice to wells fargo saying they should look outside of wall street for a new ceo while there are plenty of candidates, they would draw too much scrutiny from congress. buffet and berkshire hathaway is wells fargo's largest shareholder. shocking comments from one of the world's richest men last night. billionaire hedge fund manager ray dalio out with a rather grim

assessment of the future here's what he told "60 minutes" last night. >> i think the american dream is lost i think for the most part we don't even talk about what is the american dream and it's very different from when i was growing up. >> what's not working? >> it's not redistributing opportunity. you can call it a wealth gap, you can call it an income gap and so i think that if i was the president of the united states or -- it has to come from the top. what i would do is recognize that this is a national emergen emergency. >> dalio also weighing in on the debate over the future of capitalism he says the system is broken >> capitalism needs to be reformed it doesn't need to be abandoned. so like anything, like a car, like anything, a plane, a school system, anything, it needs to be reformed in order to work better. >> american capitalism is not

sustainable. >> yes, i don't think it's sustainable. we're at a juncture. we can do it together or we will do it in conflict, that there will be a conflict between the rich and the poor. >> now we're going to hear much more about all of this coming up later on this morning. ray dalio and the governor of connecticut will be on "squawk box" at 8:00 a.m. eastern time today. can't miss it. we are just getting started on "worldwide exchange" on a busy monday. up next, some of the mind blowing numbers around saudi aramco just how big they really are coming up. then the booming industry of etfs reportedly drawing new scrutiny from the sec. later another cabinet official submitting her resignation from the trump administration we'll give you the full story when "worldwide exchange" returns right after this

all right. welcome back good morning 5:14 here on the east coast. a big update on the world's most profitable company saudi oil minister says he expands aramco's first ever bond offering to exceed 30 billion, much larger than expected. he expects the deal to close on wednesday. aramco tapping the credit market for the first time ever to help

pay for the 69 billi$69 billione of savic the deal should be completed and done within six months. turning now to trade national economic council director larry kudlow saying the president will not reopen trade negotiations with mexico and canada under the agreement formally known as and a half tampt he - nafta. >> is the president going to reopen negotiations so he can put tariffs on cars? >> no, i don't reckon so he wants the mexican government to help us work with us on this disaster down by the border where, what, 100,000 people are now crossing illegally. >> won't this threat completely undermine this trade deal he's so proud of? >> i don't believe so. so what is the likely outcome over that very important trade relationship we have the national foreign

trade council. rufus, i don't know if people know how big the trades are. according to the federal government, u.s. trade with mexico, $616 billion two years ago, exports 276 billion imports 339 billion. what happens if we cannot figure out this border issue? >> yeah, well, first of all, brian, i think it would be a huge mistake for the president to impose tariffs in the midst of this over the to get the agreement passed because obviously the reaction from mexico who just signed a deal with the u.s., well, how can we trust your word if you're going to immediately impose these tariffs. there are other problems with getting the deal passed in congress it would send the wrong signal to congress. what they need now to do is get momentum going for the deal. i think they ought to get rid of the tariffs on steel and

aluminum and start to move in the direction of, you know, normalizing the situation on commerce keep the immigration issues completely separate. >> we export, the u.s. exports almost $100 billion more per year in goods and services to mexico than to china but yet the china relationship has drummed up most of the interest. are we under playing the importance of mexico from an economic perspective >> oh, yeah, absolutely. i mean, this is a huge market for us it's been growing at an incredible pace. you know, mexico took down all its barriers i mean, obviously we have a lot of complaints about china and i think they're legitimate complaints, but mexico took down most of their barriers when we did nafta 25 years ago you can see the result and the other factor that's so important, brian, i think this is really worth emphasizing, you know, there are something like 54 auto assembly lines in the u.s. and every single one of them depends on parts from

mexico so if you have a big disruption in the border, unfortunately even though he hasn't closed the border or imposed tariffs on autos, they have diverted resources at several of the ports of entry. we're seeing slowdowns in shipments. that's going to affect u.s. manufacturers, consumers. >> i think the president wants those cars pre-made here he doesn't want to export them to be made here. he wants everything made here and put american men and women back to work we know supply chains take years, if not decades. >> yes. >> can that strategy work at all? >> well, not the way he's doing it i mean, obviously he's going to get the exact opposite effect. it's going to make u.s. manufacturing less competitive it's going to cause big disruptio disruptions, like you said you have to do these things over many, many years the way to do it is with strong

policies to encourage investment in the u.s. and open markets abroad for u.s. auto exports we need to open the markets in asia and elsewhere to our auto exports, not close our supply chain with north america. >> national foreign trade council, you're the president of it we appreciate you coming on "worldwide exchange. big topic. literally hundreds of billions at stake thank you. >> take care. straight ahead, why the s.e.c. is beginning to sniff around three of the world's biggest etf providers. later, a massive fireball ripping through central paris. possible cause and full story enwodwe chge" returns.

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welcome back here's a must read story this monday morning it's from barron's it's called the etf business is dominated by the big three the s.e.c. is suddenly concerned. the big three are blackrock, vanguard and state street. those three firms control 80% of etf assets according to barron's, they're wondering whether this will limit domination and consumer choice no action is being taken as of yet but the sec is paying attention and this story is something to keep watch on. now to move on a different topic. another cabinet level official

from the trump administration is leaving, this time from the department of homeland security. tracie potts live in d.c. with more on this story tracie. >> reporter: hi there, brian good morning lots of developments lots of things happening in washington, but the developing news overnight has been that the homeland security secretary, kirstjen nielsen, she's out. just days after standing with president trump at the border, homeland security secretary kirstjen nielsen has resigned. >> she has been a disgrace as secretary of homeland security and she leaves behind a legacy of separating families, taking children and lying about those policies. >> i think it says there is a lot of frustration at the white house. >> reporter: frustration at the number of migrants crossing the border reportedly led president trump to ask nielsen to leave. he tweeted the news, border patrol is amazing. replacing nielsen, the commissioner of customs and

border control, kevin mcaleenan. >> the number one person left today, vitalo got pulled out nobody is in charge there. who's running it supposedly you're in a crisis and you have nobody running it. >> reporter: democrats wednesday deadline for the irs to turn over six years of president trump's tax returns. >> that is not going to happen and they know it. >> going after his tax returns through a legislative action is moronic. >> the public has a right to know whether the president's interests are impacting the decisions he makes using the authority that we have. >> reporter: and starting tomorrow, two days of budget testimony from attorney general william barr he's expected to be grilled about redacting, blocking out parts of the mueller report. it's necessary because parts of that report include grand jury secret information other types of classified information. most democrats want to see the full thing right now.

>> yeah, yesterday >> reporter: right. >> tracie potts, thank you very much. on a more serious note, some terrifying video out of paris, france look at this an explosion ripping through central paris over the weekend a fire tearing through a residential building in the northern part of the city. now despite that huge fireball, thankfully nobody appeared to be hurt the cause of the blast and the fire is still under investigation, although some officials suggest it could have been a propane tank from a barbecue. let's get a check on this morning's other top world and national headlines, including some crazy weather in texas. frances rivera in new york with these stories. >> good morning to you that storm barreled through texas dropping golf ball sized hail there was rain, wind, massive hail balls get ready for more pain at the pump according to a lindberg survey the average price of gas in the

last two weeks jumped 12 cents to $2.79 a gallon nationwide oil prices are at a five-month high because of opec supply cuts and u.s. sanctions on venezuela. coming down to the wire, the ncaa women's basketball championship game was one for the ages notre dame had a chance to tie it up but the hero from last year's championship misses the free throw there the first free throw that seals the deal for baylor the lady bears win the rematch from the 2012 national championships game the men's championship tips off later on tonight it will be an offensive battle brian, those are your headlines for this money. >> they'll be partying or probably still are partying in waco, texas. frances, thank you good luck tonight to the

cavaliers. cnbc colleagues, cavaliers, probably won't see them tomorrow anyway, on deck. the friendly skies just got a little bit friendlier. the new report that could have some frequent travelers scratching their head just a bit. later, the kids are already. they're spending t ys reporting on it whenou gehere we'll give you a first look at it next. every day, visionaries are creating the future. so, every day, we put our latest technology and unrivaled network to work. the united states postal service makes more e-commerce deliveries to homes than anyone else in the country. i that's the retirement plan.e, to homes with my annuity, i know there is a guarantee. it's for my family, its for my self,

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ge sinking breaking news on that call straight ahead. the world's biggest hedge fund manager ringing the alarm on america's growing income gap. why ray dalio says american capitalism is not sustainable. put your seat and tray tables in the locked and upright position and chew on this. a new report about air travel. the airlines you're going to absolutely love. frequent travelers are going to wonder what the heck are they talking about. all this and more as "worldwide exchange" rolls on ♪ ♪ welcome, rick springfield. thank you for being with us on cnbc good monday morning, i'm brian sullivan let's have your executive recap. >> here's what's leading cnbc.com right now pinterest kicking off the road show today pinterest reportedly plans to set an ipo price range below

what we valued they're starting to trade on the nyc next week. the world's biggest hedge fund manager is ringing the alarm about income inequality. here's what ray dalio said on "60 minutes" last night. we'll hear more from dalio coming up. he'll join the connecticut governor on "squawk box" at 8:00 a.m. eastern. warren buffet says the big banks should look outside of wall street for the next ceo he said there are plenty of qualified people on wall street but they would draw increased scrutiny from lawmakers. buffet's wells fargo's largest shareholder. stock futures are in the red. the dow jones industrial average was implied open just under 100 points now down about 93 points but what a market run it has been check this out the s&p 500 is in the middle of its first seven-day win streak

in 17 months the dow jones industrial average at its highest level since october of 2018 and less than 2% from its record high check this out, the nasdaq 100 has only had one down week all year stocks have been bought. bonds, by the way, have been bought as well benchmark ten year note still sitting, i mean literally a hair below 2.5% and the european markets, let's not focus on what's happening now. they are fractionally down instead, check this out. if somebody were to ask you what was the best performing european stock this year, you will now know the answer is the greek athens index the athex composite is up 23% in 2019 oh, how far we have come joining us now to talk about this and the setup is steven wining, global chief investment strategist at citi private bank.

steven, i want to give you a pen. sign this barron's >> i'm not responsible. >> i know, i'm not blaming you is the bull unstoppable? got to be fair they do poke fun of themselves with an inverse coordinator. >> right. >> at some point is this market rally going to peter out >> well, right now we're ahead of an earnings season where we've had questionable economic data going right into it. >> and all we are in the middle of a seven-day winning streak. >> that's why we might in fact worry a bit. the first quarter for the u.s. economy looked fairly close to 1.5 gdp as far as we could tell. i think it ended stronger. you could see what happened with the jobs report for the month of march with the ism data for the month of march stronger than the quarter as a whole. the worries in the bond market that we have seen from the end of last year to this year were legitimate we had a federal reserve that

would have tightened three more times. but the fed heeded those warning signs. the economy has the potential to regather strength. first quarter earning seasons tend to be strong. we did have a glow in economic data i think what's important is that a lot of the fears that we have about interest rates and trade policy i think are probably lower risks than what we were at the peaks of last year stock market's lower. >> why is that you have the president saying he might shut the border with mexico $700 billion back and forth in trade. >> yeah, you don't sort of sell cars if the door handles aren't on. >> right >> no, that is an actual significant risk business disruption if we were to interrupt trade in that particular way, but we've also taken a particular threat off the table, another year.

we'll see on that particular one. but i think most importantly, where we were with china and where we are with europe and more importantly where we are with the federal reserve compared to where we were last year the forward looking concern about the federal reserve over tightening is a diminished risk and we have a very good chance that earnings this year will mark a new record high it's not going to be negative 2%. >> new record high. >> so in december i think technical term here the market freaked out for lack of a better term about where earnings in the economy may come in. the market has obviously reversed course and realized we may be overly worried about how earnings are going to come in, but are they going to come in enough and good enough to meet some of the stats that we just throughout there >> well, importantly i think the first quarter is going to be considerably better than analysts estimated. >> okay. >> this is the case that we have seen for all of ten years.

now if they do that, we will not then need to grow by 10 beers percent to make earnings estimates. you can have a slower growth year overall we will still eke out some first gains. what's important here, you think about the fourth quarter and the warnings that we had this was like driving in a rainstorm driving too fast and almost veering off the road but instead we didn't. and so you drove more cautiously and you got home that's very much the kind of analogy that we should expect, particularly when the federal reserve has changed its policy they altered that course in a way that's much less likely to disrupt the economy. >> it's a weird year because all of the s&p up 15%, nasdaq up 17%. whenever you throw that out there, somebody of course will say, yeah, we're just coming

back from what we lost in december so they're not real gains in some way, we're just clawing out of that hole. >> let's just reset. >> that's right. >> new quarter, new reset. can markets make more gains from here on out? not just get back what we lost, new gains. >> i think the new record highs in earnings with a relatively modest sort of undemanding interest rate back drop can get us new record highs. i don't think it will be as easy as bouncing back from a low and i do think that around the world you can take a look at much larger, you know, losses need to be recouped where you have far less demanding valuation picture and some of these markets you'll go up somewhat further just to catch up. >> we're going to wait on friday the earnings season -- are you ready for earnings season, stephen? >> it is we're going to confirm whether or not all these gains were

valid. >> there's real information. the future is not about the quarter past but trajectory. >> that's valuable information. >> it is thank you very much. a really interesting report on retail that you have to hear and we'll hear it right now. piper jaff fri ry is out with aw report on spending the average teen claims to spend $2600 per year joining us now to talk more about this is erin murphy, senior analyst her team published the semi-annual taking stock with teens. erin, these are some big numbers, 13 and 15-year-olds spending 2600 a year on what? >> it's a great point. so this is a survey that we've done twice a year. we've done it for over 18 years. these teens when we ask them how much they think they spend, when you look at it by category,

they're rolling up to about 2600 of course this is probably money coming from their parents as well as maybe things they earn in their part-time jobs. the number one category is food followed closely by clothing those are the two most important categories we're seeing currently across this demographic. i'd say a close third, particularly in the male cohort, is video games that hit an all-time high among spend for these males. >> yeah, video games and food top of the road for teenage males. not sure what that says about the future, but let's move aside from there if you take the number of 13 to 19-year-olds there are in america and then you multiply that by the $2600 number you've got, you come out with $77 billion. was that a number you expected, erin >> you know, it's been a pretty stable number our surveys. shy of just the resection.

teen spending has been that much on average our survey goes to the 16-year-old. that's on the gen z target >> based on that, what are the companies, what are the stocks that are going to benefit from all of that spending >> sure. so in my universe, which is really the apparel and footwear space, one of the biggest macro themes we've seen in the data towards athletics. >> typically, nike, the number one brand in terms of footwear, that had a stellar reading there's a significant brand, lululemon was one of the most

notable risers in our survey it cracked the top ten list. it wasn't just driven by females. males were actually supporting that that would be on the apparel side looking at technology, that is very important gen z is the first digitally native generation we have. these teens were 3 or 4 when the first iphone came out. 83% say they have an iphone today. the other stat that was staggering is 50% of teens claim they shop on amazon as their private market spot. >> erin murphy, thank you. on deck. calling it quits why a huge cigarette maker is telling its more than 1 billion smokers to stop smoking. but, first, brexit going main street. theresa may giving the old snl

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i think i know what to do. >> madam prime minister, we've already agreed on a solution your solution. >> what? >> you sold brexit and you've saved brittain >> yeah! ♪ ♪

>> theresa may is simply not in control of this process. >> well [ bleep ] at least i'm trying >> all right theresa may and brexit getting the snl, "saturday night live" treatment. sketch securing may over failure to push a brexit deal through parliament no laughing matter brexit has finally gone mainstream. the world's largest cigarette maker is launching new ads today to tell its customers they should stop smoking, at least smoking cigarettes frank holland joining us now with this interesting story. >> cigarettes is the key word there. phillip morris, the maker of marlboro cigarettes is rolling out that campaign telling the 1 billion smokers worldwide to quit smokes as it launches what it's calling the year of the unsmoke. ads running if you don't smoke, don't start. if you smoke, quit kind of a surprising campaign

for a company that made more than $25 billion on cigarettes last year. but comes as cigarette use is steadily declining world wide. phillip morris hopes to launch heated tobacco here in the u.s their problem heats up tobacco to release nicotine versus burning it this is the majority of its $6 billion investment in smoke free products the ceo said the time is right in the shift in strategy. >> as cigarettes decline, you know, we want to be very competitive. >> push them to the alternative. >> the idea is to push them to the alternative. between 75 to 85% of people switch completely out of cigarettes, stop smoking and use this product. >> phillip morris saw its cigarette sales by 3%. icos is currently under fda

review for sale in the u.s if approved, it will be distributed by altrium they have a separate application that would allow icos to be marketed as a nicotine product with a lower risk than cigarettes the ceo will be on "squawk on the street" for an excludsive interview on the year of the unsmoke campaign and getting out of the traditional cigarette business. >> still getting nicotine in a different way? >> if you heat tobacco instead of burning it, it has less health risks that's why they're trying to move into the heated tobacco business they're separating marketing wise and product wise from cigarettes. >> all heat, no fire, phillip morris, you can pay me later thank you very much. >> thank you. frequent flyers, especially those of you here in the new york area, you've got to hear this a new report out this morning

shows that the quality of airline service in america is at record high. who soared into the top spot and what airline struggled, phil lebeau has more. >> reporter: here's one you may not believe, especially if you travel a lot airlines are doing a better job. wichita state university and emory ritle aeronautical university measured on time arrivals, how often people were bumped, mishandled bags and the number of complaints sent to the department of transportation and last year this is a better ad. three out of the four things we tracked got better so i'd have to say it's doing well. >> one improvement stands out. the number of people bumped from flights which was cut in half. not surprising since airline ceos told lawmakers in 2017 they would eliminator curb the practice of over selling

flights. >> they had part of '17 to fix it and all of '18 and looks like they did and that's encouraging for the flying public. >> tops in the airline quality rankings this year, delta just ahead of jetblue and southwest meanwhile, spirit, american and frontier had the lowest scores in the reports while this report is encouraging, it fails to track how often people complain on social media about airline service, which is increasingly how people reach out to their carriers or vent when something goes wrong on their trip. you can find out more about this new airline report and go to our website at cnbc.com. let's talk more about the markets. all right. on deck. hitting the brics. why your next guest sees an opportunity. the flag might give it away.

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two big stocks to watch today including ge shares sinking another 5%. cutting the rating on ge to under perform. tusip says investors are simply underestimating the severity of the challenges left at ge and they are over estimating the value of small posits. ge down 5.5% another stock to watch is snap that's going up nearly 5%. rbc's mark mahaney upgrading to outperform snap may have reached an inflection point based upon its fundamentals. let's talk more about the markets, the federal reserve and

why your next guest says you want to look outside of america. it's one of the brics. it's the b larry mcdonald, editor of the bear traps report and a cnbc contributor. why are you so positive on brazil >> brian, remember, the media is your best friend. >> we are. >> best friend in the world. after trump was elected, there were over 175 negative stories on mexico and what trump would do to mexico and what the trump administration policies would do to mexico. over the next nine months those stocks were up 35, 40% the global media complex hatred for the government is like something we've never seen it's 10x trump so this honeymoon period they say is over in brazil is getting

literally probably 10 to 20 times the eyeballs that it should be getting. so the bolsinaro administration is going through what is called a honeymoon cold period. >> we always hear, sorry, larry, to interrupt, sell the news. you're not saying sell the news, you're saying buy the opposite of the news because the news is skewed to the unfair negative around the brazilian economy and brazilian government >> yes very similar to in 2007 we were lectured about mnuchin and larry cohn and the dow was up 1,000 points every single month in 2017 the same thing is going on in brazil now these stocks are up. remember, since september in brazil and you're coming out of a really ugly recession in 2016, but since september equities in brazil are up 35% and all we've

heard about all weekend long, all we heard about is really the attention on this honeymoon period being over. you would think that stocks are off 40%. >> yeah. do you think drk turning to america, larry, do you believe the u.s. is slowing, is over done >> well, i think overall, i mean, everybody is hiding out in the world in the u. united states we're trading equities the street's looking for 171 on the s&p, right and that's down from 180 in september but, still, if we come in at 160 on the s&p earnings, the s&p's really trading, you know, 18 times so that's expensive. whereas, brazil, you know, nobody wants to talk about brazil because of the bolsinaro government you're talking about equities trading 13, 13.5% earnings the pricing power of these

companies in brazil with a weaker dollar heading towards the 2020 election, i think you could have a substantial rally in brazilian equities and a rally in the currency versus the dollar. >> a lot of people with money saying -- to larry have a great week. see you soon. >> yes. >> finally this, the most random thing you'll hear. remarkable stats around this remarkable market run. the s&p 500 up 15% this year that does not tell the entire story. did you know there are only 43 stocks in that index that are down this year only about half of those are actually negative when you factor in their dividend there are 112 companies, more than 20% of the index, whose stock is up more than 25% this year. you can say that's because we tanked in december no, 103 of those 112, up more

than 25% in the past couple of months as well stop blaming december. it has been a heck of a run. thanks for watching. "squawk box" is next we'll see you tomorrow now i'm thinking...i'd like to retire early. let's talk about this when we meet next week. edward jones came to manage a trillion dollars in assets under care by focusing our mind on whatever's on yours.

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good morning, investors counting down to this week's earnings kickoff futures in negative territory. after last week we were getting close to new highs not quite. we'll get you ready for the opening bell. the manager of the biggest hedge fund signing alarms on america's income gap just like the poster child for it ray dalio says capitalism needs to be reformed he'll join us live at 8:00 a.m. eastern. new this morning, ge shares plummeting on a downgrade.

we'll tell you why he's cutting his downgrade. it's monday, april 8th, and "squawk box" begins right now. live from new york where business never sleeps, this is "squawk box. good morning, everybody. welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. let's take a look at u.s. equity futures. things are looking like we're going to open down dow futures indicated down by almost 100 points. s&p futures off by 5 points and nasdaq down 13 points. we are coming off strong gains on the markets on friday all three major averages posted at their highest level in three months we are talking about the s&p 500's longest winning streak in 18 months. it's been up seven out of seven