>> here are the top five at 5:00 global growth is just crossing the wires. we are live with the headlines in moments trade truce? maybe. the u.s. walking back restrictions on chinese giant huawei jay powell is sounding the alarm of corporate debt. we'll tell you what i said is apple the real victim in a trade fight. why the iphone is front and center for your money even if you're not invested in apple

be ready so check a bag. how many people are expected to take the sky on this tuesday, as worldwide exchange begins right now. >> nasdaq, s&p, and dow futures are high are dow futures up about 70 points we're going to get to the news throughout the show. right now how much breck it and other factors impacted global growth for one of the world's most important economic forecasting organizations is out with their projections new this morning, and jumana joins us now with numbers from paris. joumanna >> all right, brian. we just got the results. the latest projections out of the global economic outlook. the one that everybody has been waiting for just to go over some of the highlights here they have smashed the global

2019 output to 2.2% and 3.4% almost 1% lower than what it was last year. they cited trade war as the main catalyst for this decline in the growth hits hit confidence and investments. it's create a lot of uncertainty when it comes to consumption decisions as well. you may be happy to hear that the u.s. is a rel ti bright spot in the forecast. they have a growing at 2.le% for 2019 that's slightly higher than the oecb average u.s. continues to be one of the bright spots they cite their risk to the outlook, including further trade tensions, further escalation of tariffs. they said that if we do get

another round of talks on both sides between u.s. and china, let's chat something up to .5% of the global gdp. they've also highlighted the disparity between the strength of the services sector versus the manufacturing sector a big question is how long services can continue to stay strong in an environment when manufacturing is dropping as well one of the other risks they've highlighted is china stimulus trading. broadly speak, 3.2% growth u.s. is on the bright spot. back to you. >> thank you well, that report will take some time to work its way through the markets, but right now here is your tuesday setup.

semikulkt os are made in china and then also imported to the united states wrrn watch the smh. around the world right now you have a mixed trade of aidsa overnight. no big moves either way. you have the chinese market, which was slightly higher. shanghai up about 1.2% fell again down 1.4% higher trades across the board that number that joumanna just brought you showing concern about the slowing growth not impacting the european market we are higher on the five major indexes on the continent joining us now to talk more about the markets and your money and what's going on, mark, president of potomac wealth advisors i know you are not wildly bullish on the stock market overall, but you see any pockets of undervaluation or good opportunity out there given all that is going on right now?

>> it's want just going to slow growth down, but it's impacted global growth around the world interest rate sensitive sectors could benefit in an odd way from this global slowdown >> what do we do now then? given that back drop, mark, what's the smart play? >> well, i don't think people have to change their strategy every day just because the news cycle changes every day. i think you have to build a

portfolio that has a -- they preface that we're still in a growth cycle we're still in a bull market, and a recession. recessions are being pushed out now because of the strong u.s. economy into mid, late 2021. no one sees a recession on the horizon. we have low interest rates, and we don't have commodity spikes those three factors lead us to believe we're still in a bull market and patient investors could keep their allocations and ignore the daily flunk wags and the daily tweet risk and stay invested >> stay inveed where >> i think it depends on your risk profile, but certainly u.s. stocks have been a bright spot the other thing is that global growth may be slowing, and in that report i read this morning india's gdp was raised there are countries that are not in lock step with the china-u.s. trade war slowing down because brazil or venezuela are struggling there are countries in the emerging markets arena that can sidestep some of this. india is one of them

their economy is very strong, and the report this morning underscored that >> okay. if we look at the global sort of back drop and we hear what jumama said about concerns of global growth and a ten-year yield at 2.41% in this trade skirmish or tussle or fight, whatever it may be, do we look out six months and say that will be over and the stronger u.s. economy and good corporate earnings will ultimately win the day? >> we think there will be a trade deal there's too much going on for both president xi and trump, so we think there will be a trade deal there may not be a lot of teeth in it, but both leaders need this to tone down. when that happens, the overhang on the market leads. we think corporate earnings continue their upward climb. they're in a little bit of a malaise right now. it's more company-specific we think by q4 earnings recover. we have the strong bull market continuing, and once the headlines of the china trade war subside, i think the bull market gets another leg up up

that's our thesis. >> all right, mark it's a real pleasure to have you on seal he so you soon. have a great rest of your week >> good to see you >> the story this morning, and maybe just maybe a mild thought on the trade fight the trump administration easing some restricks surrounding huawei at least for a few months younis yoon has more on this developing story younis >> the u.s. congress department is offering a reprieve for huawei after it put the company on a blast black list. the move allows huawei to maintain its networks as well as certain software updates, including for google google had espnsuspended some ot business with huawei, but he now said that the company was in talks with the u.s. tech giant on how to deal with the ban. this was an unusual move because the founder had presented helms in front of several different

chinese journalists on cctv, and he said that his team was already prepared for any disruption to their supply chain so that the u.s. reprieve didn't mean much. run also said that in times of peace, the company sources, half of its chips from the united states, but it could also make its own. added that the u.s. underestimates huawei's strength, and that a clash over technology is inevitable and he warned that it should not fan nationalistic sentiment. now, anti-mern rhetoric, though, has been on the rise here in china. china's state-broadcaster has now aired six anti--american movies for the sixth day in a row. it don't worry because if you can't watch game of thrones, the

finale, instead you can watch the next anti-american movie, which airs tonight, and i think that it's appropriately named. it is about a chinese pilot who sacrifices himself and crashes himself into an american aircraft and it's called up in the air, which i this i is so appropriate for the way the trade talks are going resign >> if the movie is about a guy that crashes his plane into a ship up in the air is kind of a missed title, right? >> oh, yeah. >> not really up in the air where. >> you're right. >> define anti-american movie? what else are we seeing in china in we're there in a hotel room right now? what's on the tele >> well, you could have also watched a movie about how the u.s. had hired chinese agents to blow up a chinese railroad, but they were able to figure it out and stop the evil americans. there have also been a lot of -- >> a lot of foolish plots being

foiled >> yes, yes. then there are more about how the chinese have triumphed over the americans during the korean war. about certain battles where, you know, the chinese were able to push back the americans and save korea. that has been a running theme that not only is on television, but also on state media. there have also been some trade war songs that have been -- that have been circulating on social media as well. >> trade war -- okay that's for -- trade war songs. saved korea. >> yeah. >> there's a lot -- >> but china wins. china fights and china wins. >> i -- >> end of the song >> by the way, we have plenty of those movies on the other side as well, and so do i'm sure many other countries. eunice yoon, always interesting. we'll see you soon thank you. everybody else, you get kwur coffee too, because we are just getting started here on worldwide exchange when we come back, the latest threat to the u.s. economy that is keeping fed chair jay powell

up at night. then, apple caught in the crosshairs to the trade fight, but one long-time shareholder says you got to hold back. ♪ ♪ memories. what we deliver by delivering. ♪ ♪ ♪ ♪ ♪

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businesses, investors, and lenders need to focus on the vulnerabilities as well as the federal reserve. >> that was federal reserve chairman jay powell sounding the alarm a bit on corporate debt last night in his speech in florida. not affecting the futures, though we are up by 70 points well, apple certainly has been feeling the pain over rising trade tensions that stock continues to get punished down another 3% yesterday. mildly higher today. apple more than 20% off the 52-week high is it wise to bet against tim cook in the long run joining us now on the cnbc newsline is pitch every butch he joseph asset manager chief investment strategist and long-time apple shareholder nancy tangler. nancy, you know, apple is seen as vulnerable on two fronts. number one, they sell a lot of phones in china. number two, they manufacture all their phones in china. do you believe the market has overreacted to the trade fears visa vi apple? >> well, apple is that stock that everyone loves to hate.

good morning i would say that there are two things that are pressuring apple. what you identify as the increase to 25% and the current tariff, but more importantly, the fear that the trufrp straiks will go ahead and slap tariffs on the other 325 billion in trade. that will have a material impact on apple's earnings. probably to the tune of about 10 periods over the next subsequent 12 to 18 months. the current tariffs are modest 2% to 3% due to increases in input materials, but i think more than that is the fear of the supreme court ruling that allows consumers to sue apple over pricing in the app store. i think since tim has bet so much on circumstances, investors will be concerned that this will have an impact on material margin >> you believe that news is more relevant than the china trade

new news ed chooirl trade news is near-term. it has to gets resolved one way or another potentially with a lot of pain between now and then remember, this stock bottomed out at 142 shares right after the earnings war in early january, and then ran up to 211 and for you we're back down to 183, 184, call it. in the short-term it's driven by the algos, hedge funds, run to the exits, but tim cook has a lot of leverage to pull. he can buy back more shares. he can -- he has increased dividend the app store is 36% of total services revenue i do think that that is where the concern lies because that's the future of the company.

we'll see how the losses come out. i would say he is that person that everyone loves to underestimate, and he just continues to block and tackle and execute. >> i hear you, nancy, but if you believe that the trade fight is transitory, the app store stuff that you are referenced may not be why do we then want to own apple stock if a major part of their business model is not being dismantled, but certainly being attacked >> well, i mean, that's, of course, the essence of the question you nailed it. i think two reasons. one is that you have a stock that's trading at 14 times 2020 earnings, so it's not super expensive. secondly, these things have a way of getting revolvsolved in court. there may be, you know, settlement costs, but with a company that has over $100 billion in cash, i'm not too worried about it

think johnson & johnson over the years with their various problems if they do the right thing even boeing that has a problem with the 737 max is -- it's a company that where the stock has held up pretty well in spite of all that i think what investors are trying to sort out is how meaningful will this ruling be i think we won't really be talking about it, and we'll be looking forward to the next thing. >> it's a big if, naents if apple either decided or was forced to make the iphone in the united states and prices rose 20%, everyone freaks out, right?

people don't pay the $1 thois. they that i $49 a month. >> i think a 20 prz increase at the margin -- we would see more around 10% to 12% if the tariffs get implemented, and i don't really see the company or the chinese government interested in leaving a million and a half jobs out of the country. we'll see how that gets resolved yes, to your point, i think that would have a marginally important impact on the company's revenue and earnings growth and then you have to reprice the stock altogether, and it goes back down to a 9-10 multiple like we saw three or four years ago i'm not -- i think you

discreetly go in and add to holdings if you are underweight the stock at these levels, and then you take them off the table and get about $200 a share again just to balance your risk in the company. you know, they're raising dividends and buying back stock. they're growing other parts of the business it's not as exact for sure i think long-term you'll be glad you own this stock three to five years from now >> the bull case longer term on apple. nancy, thank you >> you're welcome. still on deck, a big win for one well known billionaire investor the mega move that he just made in one of the world's biggest asset managers, and then what bitcoin bull tom lee says the winter is over for cryptos

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>> it's amazing. the sun comes up daytime breaks every day no matter the news. we still have a new day. all right. let's get a check on some of the big stocks that are on the move today, or could be on the move today. merck saying its blockbuster drug it was testing the drug as a stand-alone treatment for patients with an aggressive form of breast cancer merck shaerz are down half a percent. legg mason reaching a deal with nelson peltz

leg mason will add peltz they will also get to nominate a third director we'll call the stock is up 1%. a sad day in retail for those of us of a certain age. ascena is going to close down all of its stores. all 650 dressbarns will be closed, and customers can still shop on-line and there are no changes to the return policies also owns ann taylor and lane bryant that stock up 2.5% still to come, where is the beef well, apparently it's between kim kardashian and jack in the box. the fast food guru kate rogers will break down the fight of the year plus, a bold call on bitcoin the crypto currency is already up this year, and tom lee says it is going to go higher much higher. he is here when we come back

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>> rolling back tough restrictions on huawei will the details and maybe a thaw in the trade fight a bold call on the markets and bitcoin. tom lee is here with how you have to hold on and have faith plus, something just happened in real estate that has not happened since before the financial crisis, but this could actually be good news. thaul as worldwide exchange

rolls on right now, and now it's going to roll on right now welcome back thanks for being with us here on cnbc there's the animation. look at that w-o-r-l-d. thank you for being here with us here on cnbc i'm brian sullivan appreciate you joining us. let's kick off the second half of the show. of all the news you need to know in about 60 seconds. kate rogers who is fired up about something is here now with the news kate >> brian, don't know what you are talking about. here's the news that's topping the headlines right now. the u.s. is rolling back some restrictions on huawei it gives suppliers and its customers a 90-day break from penalties. they black listed huawei from national security concerns fed chair jay powell talked in corporate debt in a speech in florida overnight. mr. powell saying the level of debt in the corporate balance sheets could sfres stress if the economy were to weaken aeedded the fed would continue to impact growing jet and sees

the overall risk to the economy as moderate. and the eocd is out with the latest global growth forecast. the headline here, broen, global growth has slowed abruptly over the past year and is going to continue the eocd expects global gdp growth to be 3.2% this year. the group blaming a lot of the slowdown on rising rates >> it's still good kate rogers, we're going to fight later in trending. are you ready for trending >> i don't know if i'm coming back >> kate rogers she'll be back, and it's going to be great. here's how your more than e money in the markets look this morning. futures are up about 70 points right now. the markets fell half a percent. wow. kate comes on, and the markets jump 40 points dow futures now -- take a bow, kate up about is 12 poins right now keep the moves in contest, though the past couple of days, you've seen weakness. the s&p 500 still up about 13% this year. the nasdaq up 16% in 2009.

the red hot markets may be the beginning of the -- certainly seem to have cooled off just a bit. now, inside the market perhaps the most important economic indicator right now is the semi-conductors. the smh etf fell about 4% yesterday. it's up about three-quarters of 1% today no group of companies seen this as being directly exposed to china trade. maybe as semiconductors. of course, most remain in china, and they're also imported to the united states. you got to watch smh that is not shaking my head. that is the semiconductor etf. a chop not a top. that is how fund tom lee sees the strategy right now he thinks the s&p 500 had go up by another nearly 10%. he joins us on set of worldwide exchange thanks for joining us. >> your target still 3,100

about 9% >> correct i think that we -- once we get visibility, pe expansion is, i think, really in play because we've had a pretty solid rally that hasn't given up its gains this year, and we have the fed really accommodative, and i think we are seeing sort of expansionary dynamics in the u.s. yeah, 16 pe on next year gets up to us to 3,100 >> if you got a 16 pe on the model, you have to assume that earnings are going to stay steady or potentially grow what makes you so confident in the face of a slow global economy, but a global economy that does have some risks to it right now. >> i think what a lot of viewers need to appreciate is that roughly 60% of s&p earnings rarnt really cyclical. they're not going to be sensitive to what's happening here in china. >> 60% >> probably maybe even greater

>> that's actually still quite healthy. when you look at investment grade, you are paying close to 27 times to buy a bond from apple, and you are paying 12 times to buy the stock there's a huge divergence between what you are paying for the credit and the same issue. that convergence >> what's the biggest risk, then, to the billion case? is it trade? is it something else it would be a level of escalation of trade that would topple us into recession trade tensions have -- the key one is ten-year, 30 year that's actually dramatically steepened this year. i don't think that fixed income in credit markets are saying recession is imminent zbroosh do you worry that there's too much optimism that there will be some kind of a peaceful and mutually beneficial resolution to the trade war?

because know seems to say, don't worry, it's going to work out. what if it doesn't what if this goes on for years then what? >> that's a fair point i think the stocks have reflected some deep damage you know, you look at the semis or you look at bidu or apple these have had huge retracements elevated tariffs, you know, if -- you just don't know what it does on demand. you know what the effect will be on cpi, but ultimately there's practice considerations on the u.s. side. 2020 equity returns in 2019 are going to have a big impact on the composition of political hour next year we talked so much about the bear case, slow economy what's the biggest bull case in the market what would send us even past your target?

>> i think there's so much dry poud are retail has been selling equities all year we're talking they raised more than 10% increase in their cash balances hedge funds have been pretty skeptical this rally, and it's hard to tell exactly where they're poxed, but when you look at prime brokerage borrowing, they're still kind of net short. i think the equity market as a lot of cash on the sidin ilines. like we're seeing sensitive this morning, the advance deed cline is strong. >> remember, it's 5:35 prime brokerage borrowing. where big institution wooz go to borrow stock, to sell it short >> yes >> why does that data point perhaps signal a bull irthing in the markets? >> it's primary net cash will measure whether hedge funds are bullish, which means they have high borrowing, or they're kind of bearish so they have cash in the market market that's up double digits year-to-date where credit is actually held in really strong advanced decline

line strong, so it probably will advance through the end of the year, hedge funds shouldn't be net short. >> okay. i want to switch gears bitcoin. >> yes >> heck of a run >> yes >> heck of a run but still well off 20. i mean, it was 20,000, and then there was 4,000. now there's 8,000, roughly >> yeah. >> where does it go from here? >> well, viewers need -- it's a hyper-volatile asset >> you think >> it's negatively correlated with equity, which is good the top ten days in any year account for all of the gains in crypto thaes what we've seen, right we've gone from -- >> top ten gaimz days of the year >> 3 65 days. ten of them really matter. >> if you take out the best ten days from the ten inform year history, you are down 25%. you have to sort of look at this hyper-volatile asset it went from 4,000 to 8,000 really in just a span of a few

days there's reasons to be optimistic you know, it's proven to be digital gold, like as we worry about china we saw bitcoin rally. there's this event wald the happening coming, which is the supply is getting cut in half. bitcoin predictably rallies strongly the year before that happening. it's exactly one year from yesterday. >> one year. okay is the biggest bull case for bitcoin the fact that the other cryptos, they're not all falling, but certainly bitcoin is the bran stark of cryptos i hope i din -- is it too soon to ruin the end of game of thrones? >> i think it's -- i think it's appropriate. you know, bitcoin is the dominant block chain, and is survival of bitcoin a halo for the group? there's less interest in certain people buying these ultimate coins. >> tom lee, a real pleasure to have you on worldwide exchange see you soon thank you. it is time for the morning's

top trending stories kate rogers back with all the stuff that you're going to be talking about today, and i have to apologize for throwing a piece of paper at you. i'm sorry. >> i forgive you it's okay. good to see you again. u.s. airlines are set to fly a record number of passengers. according to a new survey from americans for america they should be prepared for 2.7 million flyers which means june 1st and august 31st. that would be a 3.4% bump from last summer and the tenth year trait straight that air traffic has increased. some major airlines are scrambling to accommodate passengers, though, with the continued ground of boerg. >> you do an amazing job covering small business all around this country. you spend a lot of time at airports >> i really do >> how much -- in the kate rogers' index, how many of your planes are just packed, i mean full >> all of them all packed they feel like they're getting smaller and smaller, too no leg room. >> who you telling >> i know. >> big story here.

famous person angry at fast food chain. >> yes this is a big one. kim kardashian has some serious beef with jack in the box. nearly 61 million twitter followers, almost as much as us, tweet says, hey, jack in the box are, i have ae serious complaint, but i won't fully put you on blast check your corporate e-mail inbox or send me aa dm with a direct person to respond to. it's still unclear exactly what happened, but kardashiansays the issue was something that she observed impacting other customers rather than a problem with her own experience or order. that's really interesting. i mean, that's a huge following, right, to -- >> this is a mystery i suspect some people will find interest in this story >> yes, certainly. i can't wait to see and hear what happened at jack in the box. >> dive in what do you think it was give us just a wild guess. >> i'm sassuming bad customer service. maybe somebody being mistreated.

i would imagine it's not with the food i think it was a guest interaction. we'll wait and see >> but if you are kim kardashian, and you are jack in the box. >> has to be pretty bad for her to tweet that. >> you also probably could have some, you know, interest if you roll into jack in the box and see kim kardashian, i would imagine. >> yes if thank you >> thank you >> something happening in the housing sector that is not occurring since before the great recession. we'll tell you what that is right after the brea comes easil. that's what happens in golf and in life. i'm very fortunate i can lean on people, and that for me is what teamwork is all about. you can't do everything yourself. you need someone to guide you and help you make those tough decisions, that's morgan stanley. they're industry leaders, but the most important thing is they want to do it the right way. i'm really excited to be part of the morgan stanley team. i'm justin rose.

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. >> we got a he weather alert for you. the first named storm of the hurricane season sub-tropical sform andrea is churning a few hundred miles off the coast of bermuda. it's packing winds of only 40 miles per hour, but it is something to watch while forecasters do not expect this to turn into a major storm recent hurricanes here in the u.s. have brought record destruction, and that is some looking for ways to fortify their homes. diana ohlich trays a look at the costs of a series of the rising risk of increasingly extreme weather.

it sits 12 feet above the ground and is anchored 28 feet into the ground >> i felt like it had a better chance of fighting >> now, seven months later king says it is not enough. >> storms are in my opinion when i was seeing it get stronger >> you learned from michael and his upgrading his home why et again. >> all this cross placement wasn't there where he don't have concrete that was shipped across these columns. >> he is fort filing the house well beyond any current building codes. his next door neighbor built to

the highest local code two yoerz ago, but the home is a total loss new mandatory building codes adopted after hurricane andrew have improved hurricane resistance in florida's new construction nationally the insurance institute for business and home safety created a hurricane fortfied standard a decade ago men as a guide moin for builders and owners so far only 8,000 homes have that designation those that do sell for 7% more >> i wouldn't describe it as cost prohibitive we focus on low to moderate income homeowners, and this is the balance in that.

the rets of the things i'm talking about is almost gligable four-bedroom house >> there are levels of protection just as there are categories of hurricane strength the latest habitat homes faired better than their neighbors in hurricane michael, but russell king isn't taking any chances. >> do blooif that there's such a thing as a hurricane-proof house? >> no, no.

skbro why does it seem to be so little knowledge about this topic? >> because a lot of homeowners, they see the disruption after i hurricane and you think you're going to get wiped out or maybe it's going to go somewhere else, and there's no middle ground in between. they just figure it's either going to get wiped out or it's not. >> there's no such thing as a hurricane-proof home >> not proof look at his house. the only one standing on the beach. there was danl to. he leshd a lot of lessons from it, but it's still standing.

there were a lot of investors buying up the property >> okay. diana, stick around. i want to switch gears and talk about another important topic in real estate. he the number of mortgages more than 90 days past due at a 12-year low. let's bring in mark fleming as well first america. this is great news, is it not? >> yeah. good news. good news. >> is it going to last >> not indefinitely forever, but right now we'll take it, right?

it's something that will slow down the housing market. >> we've seen a lot of news lately that we're seeing riskier mortgages. there's a thing -- i won't get all technical called the qem patch and that allows you to have higher debt and still get a fannie and freddie backed mortgage with your income. do you expect to see any more going forward if people have more debt in the mortgages >> yeah. the qm patch is really focused on your sustainable ability to pay your leveraging how much of your income per month that you actually put towards the mortgage that increases the risk of a delinquency. if people don't go delinquent jaus because they're paying. people go delinquent and then into foreclosure later because something happens in their lives. a divorce, death in the family, medical event, loss of a job, which is really related to the economy and recession risk it's those things that happen, and there is risk exposure there by being more heavily weighed towards your mortgage over

everything else. you have sign that before, and generally, that was the financial crisis we'll call it financial innovation to layer that with negative and interest only and all these other thingsr equity in their homes. if they get in trouble, they can sell pretty easily. >> delinquencies often have risen but foreclosures have not. loss of equities as well as inalt to pay to get into a foreclosure position. >> i'm going to ask this question for a friend. is there any sign that this salt cap reduction, has that worked its way through the market has the market repriced, readjusted at all? >> let me put it this way, we've tried to find evidence in the data, and it's very hard to find any systemic evidence data of big effects, even when you drill down into these micromarkets we

don't see a lot of it. we know anecdotallyi clearly som people are making the decisions. the reality hit a couple of months ago with the first time where you're filing your taxes and actually realizing what it meant to you, but also the decision to move is much more than simply just financial >> yeah, you agree with that >> absolutely, but you're always talking salt you ever going to stop talking salt >> some day we'll talk pepper. diane and mark, great stuff. important series thank you very much for coming on. on deck, don't get tariffed out. how to manage your china risk to your money next. ♪ and the wind catches your feet ♪ ♪ ♪ applebee's new loaded fajitas. now that's eatin' good in the neighborhood. applebee's new loaded fajitas. my gums are irritated. i don't have to worry about that, do i? harmful bacteria lurk just below the gum line. crest gum detoxify, voted product of the year. it works below the gum line to

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welcome back, and good morning, 5:53 here on the east coast, and stock futures are up. dow futures up about 120 points. market though seems to be a little bit wobbly lately your next guest says don't get tariffed out of the market joining us is j.j.kinnehan chief

market strategist at td ameritrade in d.c. what does that mean, don't get tariffed out >> i think what you're seeing is so many people -- and just look at the last two days, one headline takes us down, the next takes us up. i think for most investors it's really difficult to follow this, and you know, if you're going to swing on the emotions of day-to-day, there is that set of investors that this is great, they love to do more trading trade the volatility, but for most people watching your show, what i would say is still continue to pay attention to earnings now, tariffs may affect some of the companies you own or you hold, but really, what are they saying in the earnings calls what are they saying for future possibilities? that's what -- you know, earnings drives stocks and that's what actually matters so what i would say so most people is, you know, headline risk if you're going to pay attention to it every day will probably drive most people mad. >> it's hard not to be a little nervous, though. the headlines are pretty severe when the president is tweeting

out things like will end iran. that's a scary headline. >> it is a scary headline, but i would say let's look at what's going on in the market with volatility and how's the market pricing that in. the vix that you show on the screen all day long here is still, you know, below 16 this morning, and so with that what the market's telling you is, yes, there is a repricing of stocks going on right now, but it's not a severe, oh, my god, i have to sell everything, it's going to be terrible i think what people do have to get used to is this is probably going to take longer than anybody thought. these things take a long time to work through the system, and there's going to be a lot of back and forth between that. i think what you have to do as the individual investor is decide what kind of effect is this going to have on the holdings i have, not to say, you know, some tariffs won't have an effect and if china devals thue

their currency we're not necessarily watching how the sausage is being made so to speak in that you're seeing the negotiations go on right in front of your eyes. >> what if the market is wrong and we do not get a -- everything's like we'll get a resolution because it's bad for both we've seen many outcomes in human history where the best possible scenario didn't happen, where both sides actually got shot. >> you know what, i agree with you on that, brian, and that's why i'm saying it's going to take longer than people think because let's look at, you know, just the small history of this so far it looked like about four weeks ago we were going to come to some sort of resolution, but what happened? both sides as we got closer and closer to negotiating through this, their economic numbers started to improve, and that emboldened both sides and was suddenly like oh, maybe i don't need you as much as i thought. i think what's going to end up happening is both numbers are going to sort of start to

depreciate a little bit and that brings people back to the table. >> great analysis, we expect nothing less thank you, have a great day. thank you all for watching "worldwide exchange. "squawk box" is next ♪ ♪ at comcast, we didn't build the nation's largest gig-speed network just to make businesses run faster. we built it to help them go beyond. because beyond risk... welcome to the neighborhood, guys. thank you. there is reward. beyond the classroom... there is inspiration. ♪ ♪

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good morning, stock futures are in the green we'll have a full market rundown. plus, we'll show you what fed chair jay powell said last night about the strength of the u.s. economy. backing off the blacklist, president trump rolling back some tough restrictions on chinese telecom giant huawei, and look out below, tesla's stock has been volatile overnight after yesterday's drop, down more than 13% in the last week trading near two-year lows today is tuesday, may 21st, 2019, and "squawk box" is beginning as we speak as someone

used to say. ♪ sun is shining in the sky ♪ live from new york where business never sleeps. this is "squawk box. we are live from the nasdaq market site in times square. i'm becky quick. let's take a look at the u.s. equity futures this morning. dow indicated up by 144 points after closing down yesterday by just over 80 points. yesterday it was apple that was really dragging things down for the dow and the nasdaq the nasdaq is indicated up by about 70 points. the nasdaq yesterday closed down by about 1.5%. if you're looking at where the markets stand right now by the s&p up by about 18 points. the markets stand for the months are down from their record highs. dow's down about 4.7% from its record high and the s&p 500 is down by 3.9% from that record high