topping your five at five this morning, stocks coming off a huge day as federal reserve chairman jay powell signals that a rate cut could be coming that rally running over overseas green arrows in many parts of the world, congress, though, playing a game of monopoly with big technology, and now apple's ceo is weighing in what tim cook is saying about government's big crackdown on big tech. could we hear more on tariffs today? we're going to take you there live and it's no fun and games, why game stop's stock is down about 20% right now. it is wednesday, june 5th, and

"worldwide exchange" begins right now. ♪ quit playing games with my heart, with my heart, with my heart ♪ good morning, good afternoon, good evening, ask welcome from wherever in the world you may be watching. i am brian sullivan. yesterday the second best day of the year for stocks, the dow soaring 500 points you're probably wondering is that rally going to follow through today? let's go ahead and find out. right now at this 5:00 a.m. hour, we do see a little bit of a continuation of yesterday, dow futures up80 points. we're not soaring on the futures. no one's saying that, but we are not seeing that drop that we had in may every time we went up we take two steps backment not the case today. we are on green across the screen for bonds or bond yields backing up a bit yesterday the fed of course all but came out screaming it might lower

interest rates this year the benchmark ten-year not reacting too much, still very low, only five bips, basis points as we say in the biz. a similar story in asia, at least for one major market let me clear this. there we go. even though the world bank trimmed its global growth forecast for the year down to 2.6% from 2.9%, which is, by the way, the lowest growth forecast in three years, it didn't matter to the japanese market the nikkei 225 in japan spiking nearly 2%, one of the better days it's had in a long time china, we'll call it flat, europe is higher gentle gains across the board. no major rallies, but the j-- trade of course remains your top global story this market may not be about trade right now. it is obviously about the

federal reserve. joining us is patrick armstrong. you know the fed utters and the market responds. are you surprised by the magnitude of the rally of the u.s. stock market yesterday based on a couple of words from the fed? >> yeah, it was a very subtle change where powell's move from patient to saying i'll do what's needed should the economy deteriorate. i'm a bit surprised by the sharpness of the move, but given the context of what we had in may and very oversold conditions, i don't think it's out of the realm of what you should expect basically. the market was worried that the fed may not cut if we do get into a trade war and see economic growth weak, i think powell's reassured the market he is there to cut if the trade war does escalate further. i think probably the market's gone too far right now pricing in that next fed cut i don't think there will be a cut unless we see a deterioration in trade or an

upping of the ante on china, u.s. trade relations >> a lot of sort of selling pressure coming into the day, and maybe some margin covering was it a short-term maybe one-day wonder >> i think it is probably short-term because you shouldn't have a euphoric reaction to what powell said. his words were that if needed we'll be there, and i don't think you buy base ond that because if it's needed you don't want to be in equities it's difficult for me to see where the real leadership in u.s. equities are going to come from you might get a steepening of the curve which we expect, which will be good news for financials but it's not the right kind of steepening you would want if you're a financial the weakening of the front end means you've got a weak economic backdrop you see issues with government and it's going to be a very difficult decision on the way government treats these large cap companies because if you are in a trade war with china, you

want strong technology companies in the united states so you've got two edges of the sword right now on what the u.s. government's doing on both the white house administration and congress maybe looking at things from different perspectives. >> i think our viewers are kind of wondering what do i do now. we had a great start to the year may was a disaster, june is looking pretty good but they wonder what to do vinindividualy we talk a lot about boeing's problems the ceo was on the other day, are you long air bus >> yeah, so we're looking at ways to play a potential trade war on companies that might win in a trade war we actually expect a trade deal potentially and continued economic growth. we like air bus, we don't like boeing we don't like caterpillar. we like toshiba machinery in japan. companies selling to china if trade relations deteriorate with the united states where china moves away from u.s. domiciled company on goods they need to import or have production on

and i think looking for regions that are outside the united states, maybe beneficiaries if it is a bilateral trade war where the rest of the world is not involved and it's just the u.s. and china going head to head on a trade war. also like gold from that perspective. that's toxic for bonds, that's toxic for equities that means lower growth, higher inflation. >> you mentioned toshiba, obviously a japanese company we've talked about how the japanese market on pretty much every metric is the cheapest major developed market in the world, but investors haven't cared. it's still well down this year, patrick. are you betting on japan or just betting on toshiba >> we are betting on japan that's a relatively new position for us we are starting to go long japan now. i think germany and japan get hit up in any news that's negative on trade. if it ends up being bilateral trade issue between the u.s. and china, germany and japan could be beneficiaries it's probably right from a global perspective those markets sell off on trade concerns but

individual companies in those markets may be beneficiaries japan's the cheapest it's been in 20 years on earnings, on ebitda, on dividend yield even you're getting a significant dividend yield on japanese companies right now. i do think it's the time to be buying japanese stocks right now. >> patrick armstrong live from london, looking toward japan, new position there we appreciate it, patrick have a great day. when we come back, tim cook talking regulation, what he is saying that is getting a lot of attention today. plus gameover? shares of one video game retailer tanking this morning after a dismal first quarter result we'll give you the full details coming up. sales force shrugging off a growing slowdown, the backlash from tech regulators looming large. we're following behind what the krurp peen union is doing, jim the european union is the ones that are the leaders in this area with their european action

against these companies when they misuse data, misuse privacy or take advantage of customers let's clean it up and let's get back where, you know, that facebook is not the new cigarette. >> all that, plus futures are higher the dow futures up 82 points right now. we're going to take a short break and talk about more about whether or not we can continue on yesterday's monster rally ntueri when "worldwide exchange" coins ght after this ♪ ready to run, oh, but is that enough? i need tech that understands my business. i need tech that works at scale. dear tech, dear tech, dear tech, we're using ibm blockchain to help make sure food stays fresh. we're exploring quantum to develop next generation energy. we're using ai to help create more accessible health care. we're using iot to create new kinds of digital wallets. let's see some more headlines about that. let's expect more from technology. let's put smart to work.

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and we are showing you some live pictures out of the united kingdom where the president is headed south from london to portsmouth he is attending a ceremony commemorating the 75th anniversary of the d-day invasion before heading off to ireland later on today we'll bring you more on this coming up. it is a big league kind of market for technology right now. big governments, big crack down on big tech is heating up. congress now calling on america's top tech ceos to testify. they want to know if they're misusing their market powers to stifle competition, and apple's ceo tim cook worried enough that he went on national news and weighed in on the issues last night. lets get to elizabeth shul sooe who is live in london with more on what tim cook had to say. >> reporter: that's right, pressure is mounting on apple, facebook, google and amazon in

washington as they face pressure now from lawmakers, the head of the house judiciary committee saying he wants tech executives to be part of the conversation on capitol hill when it comes to this investigation into competition on digital markets apple's ceo pushing back on concerns that his company is a monopoly on cbs yesterday. take a listen to what he said when it comes to those concerns. >> i think that with -- with size i think scrutiny is fair. i think we should be scrutinized. i don't think anybody reasonable is going to come to the conclusion that apple's a monopoly our share is much more modest. we don't have a dominant position in any market. >> so you're saying you're not a monopoly skpl we a monopoly. >> we are not a monopoly >> so what we're seeing is a fight here what we're seeing is a fight brewing between these tech companies and between congress, in addition to those reported investigations from the department of justice and from the ftc, so a lot of regulatory pressure mounting on these tech

companies in the u.s we've already seen it happening here in europe, and it's likely that lawmakers and regulators are going to be looking to some of the precedents that have been set here, brian whren they're looking at these cases. >> i want to switch gears. you've been on the forefront talking about the general data privacy rules kbrgdpr as it is known, what europe has been doing is a crackdown on privacy and a disclosure of private data when you talk to people there about what's happening in europe, do you see any kind of framework about what might happen here? >> that's a great point. there's been so much focus on raining in big tech here in europe, and that's coming on all fronts we've seen it from the data privacy side, as you mentioned gdpr, that huge piece of legislation that came into effect last year that has big fines imposed on companies if they breach these privacy rules. we're seeing talk of a digital tax and have seen some antitrust regulation come into place when

it comes to these tech companies. the european commission has imposed about $9 billion total in fines just on google. hasn't had a huge effect on the business, but generally could have a big effect on the precedent that it sets for these companies when they're trying to look at what places can really hurt going forward with google and likely other tech giants too. >> thank you very much we'll talk more about this a bit later on in the show. let's get you up to speed on this morning's top stock movers including one name that is down 20% right now. your stocks to watch. >> good morning, we'll get to that disaster of the day let's start with salesforce.com. raising its profit outlook for the year after reporting better than expected first quarter results, revenue jumping 24% that could explain why the stock is up almost 4%. sales force has previously pointed to strong demand in cloud computing and artificial intelligence moving on now to sky works

it's cutting its revenue guidance for its third quarter due to the loss of sales from huawei sky works has supplied mobile and wireless infrastructure products to huawei and its affiliates those sales accounted for about 12% of total revenue. shares of game stop down nearly 30% today, first quarter profit and revenue fell. brian, apparently the issue is that shoppers are just buying fewer video games and consoles in stores. gamestop eliminating its quarterly dividend that stock down as proobrian mentioned almost 30% this morning. >> got one word for you, you know what that word is >> what's that >> fortnite. >> how about that. >> no one's playing anything else but that. thank you very much. let's switch gears to china where president xi jinping says rising tension in the middle east in part due to u.s.

pressure on iran something to worry about and he adds that all parties need to exercise restraint. beijing of course has not only been hit by the trade war but also by american sanctions on the sale of iranian oil. china is iran's largest customer joining us is dan tennebaum. he joins us from hong kong it's great to see you there in hong kong. not only are you there visiting clients, but anecdotally, you're able to kind of gain the situation for yourself and what are you seeing on the chinese side yeah, brian, the timing worked out quite well, especially with president xi's comments earlier today. this is another evolution in the ongoing standoff between the u.s. and china you have the u.s. making allegations of a tanker docking in hong kong carrying iranian oil, which would be in violation

of u.s. sanctions in the eyes of the u.s. you have the chinese government saying in our law that is not a concern of ours. so you do have a bit of an issue to see how the u.s. reacts from an enforcement standpoint on an on going basis it adds another wrinkle in an ongoing complexity of this trade debate. >> your clients no doubt you are visiting dan, are people worried? are they in a mild state of panic or it like listen this is going to work itself out we just need some time >> i think there's a bit of numbness to some of these issues and threats from the u.s. in the form of tariffs, in the form of sanctions enforcement. the u.s. has yet to truly go after china from a sanctions standpoint the u.s. government seems to have divorced the two issues from the chinese perspective they believe that they really are one and the same in terms of

the ongoing relationship between the u.s. and between china, so i do get the sense from talking to clients locally that they are a bit numb to seeing how the u.s. will react there have been measures taken against smaller institutions in china with respect to their ongoing business with north korea and iran, but that can easily be ratcheted up if you do take the example of some of the technology companies that posed a very big part of the ongoing trade dispute, one of them was put in -- both of them have been put in the hot seat related to alleged activity with iran. so this has formed a significant part of the debate, but none of these issues have really been seen through there's kind of been statements made by the u.s. it's been put out there in a threat to cease the business with iran by some of these other parties, but there's been no follow through >> we're going to -- we might see what happens right now there is one super tanker that is floating on the ocean somewhere out there. it is owned by a chinese bank, and it is filled with iranian

oil that was filled up after the sanctions went into effect now that ship, we've been tracking it, has not become to port yet to unload that oil in china. you're a sanctions leader, dan, if that ship were to come in in direct violation of what the united states is saying cannot happen, what do we do? what's our -- what's our policy here >> so that is the real issue the u.s.'s position on iran is a unilateral position. historically the u.s. had allied support in the treatment of iran that's not what we're seeing today. you're beginning to hear noise of an attempted push away from dollarized transactions, which we've heard for years as a threat before, but until someone can truly punish the u.s. for these unilateral moves, it will be really difficult for the u.s. to ftamp down its expectations i think what's important to note

with the vessel you mentioned there has been ship to ship transfers for years to transfer oil off vessels onto other vessels midstream in transit there's been moves to turn off the ais tracking equipment so that vessels can move untracked. for all we know the boat in question could already be here in hong kong but there's a number of measures that people have taken for years to circumvent sanctions. i can only imagine that that's continuing at this point, especially since the oil waivers expired last month. >> dan tannebaum in hong kong, it's a more humane hour there. we appreciate it thank you very much. discord in the ranks, will the gop really go after trump's planned tariffs on mexico? and what will trump do if they do we'll take you to d.c. next. later why some say that breaking up big tech could be a blessing in disguise for investors. fun fact: 1 in 4 of us millennials have debt we might die with.

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welcome back, it is 5:23 on the east coast let's get down to news out of d.c. there is a very important meeting happening there today. leaders from mexico will meet with secretary of state michael pompeo to talk about the tariff threat and more importantly what they may need to do to stop it tracy pot ss li tracie potts is live in d.c. with more. >> reporter: they're bringing a plan, they're also meeting with the vice president and others. it is a keymeeting at the whit

house today but also key is the opposition from republicans on this idea of taxing mexican goods. republicans don't like it, and turns out they may have enough votes to block it. >> it's a vote. >> mexico's foreign minister is bringing an immigration proposal to the white house today he's hoping to convince vice president mike pence not to impose a 5% tax on mexican goods starting monday. >> we are going to have our best effort in order to avoid complications or tariffs next week >> if they will meet the demands of the administration, we don't need tariffs, if they don't put tariffs on. >> today's meeting includes the secretaries of state and homeland security, the vice president's chef of staff, and a white house lawyer president trump is threatening tariffs escalating to 25% by october to force mexico to track down on central american migrants crossing their border into the u.s.

>> i believe that he will back off when faced with the opposition among business, among his own republicans, and when he sees what a dumb move he has made >> we're not fans of tariffs weaver still hoping that thi can be avoided. >> republicans may have the 20 votes needed to override a national emergency and stop the tariffs. >> i don't think they will do that i think if they do, it's foolish. >> reporter: doing so could also threaten billions in funding for the president's border wall. this morning the president's tweeting that that wall, brooia is already under construction. >> tracie potts, big story there. we'll look forward to seeing you tomorrow on it thank you very much. let's get a check on this morning's other top head lielin including more crazy weather in the midwest. >> good morning, they can't get a break. severe weather rolled through minnesota overnight packing wind gusts of up to 80 miles per hours and also tornado warnings. nearly 10,000 people lost power

at the peak of the storm there are reports of flooded streets throughout the state this video shows stranded drivers in lakeville, minnesota. now to the paul manafort edition of lockup. president trump's former campaign chairman could soon be headed to one of the most notorious jails in the country rikers island. he is serving his seven and a half years sentence at a pennsylvania prison. he could be transferred as early as thursday. it's seen as a move by prosecutors to block a possible pardon by president trump because a president cannot commute sentences for state crimes now we have a list that might have your skin itching, and you wanting to check your sheets this morning pest control provider term next has released its 2019 rankings for the most bedbug infested cities philadelphia reclaimed the title, a spot it last held in 2014, followed by new york, dallas, indianapolis, and cincinnati rounding out the top five were

los angeles, cleveland, d.c., chicago and boston for the top cities with bedbugs, brian, those are the headlines that will give you your wednesday heebie-jeebies >> if you're wondering, we're showing video of a dog on a bed. i actually spent a day with that dog, and there's probably many of them. his name is roscoe and it's a beagle that sniffs out bedbugs how do you train a dog to sniff out a bedbug i have no idea. >> it's all in the nose. >> they got great noses. roscoe the bed -- philadelphia, clean it up. thank you very much. still to come, tim cook firing back, why he says apple is not a monopoly. plus, is trump touting tr s tariffs to force the fed to cut rates? don't call it a conspiracy, but we'll talk about it next. - i love my grandma. - anncr: as you grow older, your brain naturally begins to change which may cause trouble with recall. - learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers.

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don't call it a comeback, futures are higher the fed signals it has got your investing back. taking aim, big government's big crackdown on big tech heating up, and now tim cook is weighing in. and speaking of tech, can you name today's mystery chart this stock has quietly made investors more money this year than any of the faang stocks and no one seems to be talking about it no one but us that is. we're going to show this to you coming up. ♪ so keep on rocking me baby, keep on rocking me baby ♪ >> welcome back, and happy

wednesday, thanks for being with us on cnbc it is exactly 5:30 on the nose good morning the rally likely to roll on. futures pushing higher this coming off of tuesday's monster run, dow futures up right now 142 points they were mildly up when we came in they've been gaining steam throughout the hour so far this morning. maybe a good sign that run will continue yields on bonds, they are backing up just a bit. the benchmark ten-year note at 2.12%. we'll show you coming up the one chart that may say it all about why stocks could continue to rally. you can't miss that one, trust us, it's a good one. japanese investors, our rally continuing in tokyo overnight. japan soaring 2%, the nikkei 2.5, having one of its best days in a long time europe not really following through as much as one may have thought. yeah, it's green across the board, all five major indexes are higher but up about a half a

percent each there you go, germany up about half a percent. the so-called powell put in full effect yesterday. the federal reserve signaling that it could cut rates and the market loved it. the chances of a rate cut among economists surveyed by wall street now at a cool 90% joining us now is chris ripkey, chief financial economist at mufg union bank. chris, should the odds of a rate cut but at 90% that's almost all the percent. >> yeah, it's extremely high at one point yesterday we almost had three rate cuts done by the end of this year that's incredible. i've never seen the market go out this far in advance of the fed. >> are they -- i feel like and with all due respect to all the wonderful economists that come on the show and this network, they're kind of running all to one side of the ship all at the same time. >> yeah. >> is that a mistake >> it seems to i mean, the traditional reason for rate cuts has always been

recession, and the clouds of recession can't be offshore. they got to be -- it's got to be a heavy rain on us i mean, one of the lessons we've seen from the last two times they cut rates in 2001 and 2007, they cut rates so aggressively that nobody was really looking for it, and it didn't really help the economy, so for me, i wouldn't make rate cuts for risk management reasons just in case. you've got to have an absolute recession with job losses, but the market's doing what it's done. >> do you have a quarter on you or a coin? i do not because there's a school of thought, and i don't want to be some sort of a conspiracy theorist but hey the financial times talked about it, which is there's a school of thought that this is a heads i win, tails i lose market for trump. he presses the fed, if he presses the tariff issue, the fed may be forced to do what he wants, which is cut rates. the more he sort of aggressively

goes after tariffs he might win on the fed side. do you buy into that? >> yeah, it is kind of a crazy like a fox sort of situation the only problem i have with that is -- and that's why the market's going to hang on hoping for rate cuts, right the president has said he wants four rate cuts to 1.5% i think he's making a mistake that pushing rates 1.5% is not going to be rocket fuel. the economy's not going to take off and grow 3%. i think he's mistaken on his policy there >> because at least, you know, from our play book in the past, chris, a rate cut meant the fed was worried. it's not a good -- it shouldn't be a good thing. >> it could be that as well. i think the problem at this point is they've pretty much said, thaiey've kind of talked themselves into a worry of what does this low inflation mean powell tried to come out and say at 1.6%. market doesn't care. they think there's something wrong. it means that the -- maybe

deflation is lurking around the corner with 1.6% core inflation. i mean, i don't buy it. >> all we've been talking about chris is how these tariffs are going to jack up prices on the consumer, not just us. i go on morning joe and we talk about major networks outside of business are talking about this, and now the fed is talking -- now the fed is talking about deflation. >> right. >> what happened to the tariff effect >> well, there is theoretically 19 fed officials, right, and boy, all these people, some of them have views that, you know, low inflation could signal deflation, but you know, that's probably not going to be the case, not with unemployment rates so low at this stage. >> so should the fed cut rates yes or no? >> i think it's a big mistake. i think they're caving into the market's demands here, and the market's kind of mindless here in discounting these rate cuts. >> is the market mindless or it

lemmings >> they're going to lead us over the cliffs they're going to lower the long-term rate on savings available to the baby boom generation >> they're going to force people into stocks. >> that could be a good thing for me >> and anybody else with equities. >> chris good stuff right there. appreciate it. live tv, at least i didn't spill water on you thank you, chris. we have said that the new capital of capital is not wall street it's d.c. because the other major macro story outside of the fed is the potential for big league regulation on big technology the house judiciary committee already saying it will call on some tech executives to testify and explain why they are not harming competition. house minority leader kevin mccarthy sharing his own concerns yesterday >> i personally have a concern about personal privacy when you look today, facebook owns instagram amazon and you have google owning youtube you have a lot of control over a

few individuals. >> now this as apple ceo tim cook firing back against allegations against the big technology telling cbs his company should be scrutinized but is not a monopoly. >> i think that with -- with size i think scrutiny is fair. i think we should be scrutinized. i don't think anybody reasonable is going to come to the conclusion that apple's a monopoly our share is much more modest. we don't have a dominant position in any market. >> so you're saying you're not a monopoly >> we are not a monopoly. >> joining us to talk about this big time issue is aei fellow and cnbc contributor, jimmy pa cue kis, and larry haverty jimmy p., very simple question is amazon google, or apple or all the above, are they monopolies that should be broken up >> i think that's -- i think

that's a very sort of interesting answer by tim cook because it's really sort of a two-part test there. one, he can make the case we're not a monopoly if you look at the iphone market you have android there's others they have their own sort of google play app store. there's other options but that's not the key thing. it's okay to be big and dominant under u.s. antitrust law that's not the problem the problem is if you are hurting economic welfare, consumer welfare through bad practices. that's the issue, and it's going to be very difficult for opponents, people who want to break up ampple or google to argue that these companies that offer free services that consumers greatly value are actually bad for consumers that's really the hill the antitrust activists have to be able to cross. >> from an equity investor perspective all of us here right

now sadly are old enough to remember the microsoft antitrust case primarily over its operating system and browser the gofvernment brought the cas in early 19998 and after all the decisions and appeals and everything else, it was 2002 before everything had been done and microsoft had been blown out of the water on its internet explorer browser dominance even if something were to occur do investors need to be worried? because this would be a long process. >> well, clearly it would be a long process, and i think it's almost an irrelevancy from the investor standpoint. first of all, you go with what jimmy said, which is that there has to be harm, and the second thing is is there a monopoly here i think there could be a monopoly and as in the standard oil case in the last century, the monopoly could be in distribution, but the remedy would be to take the distribution away from the

production in the kaus case of apple, you d take the services businesses and particularly the app store and put them in a separate company if you found ten years from now that they were guilty of monopoly and i think if that were happening, if you apply today's rules in the market, the store would be selling at a much higher valuation than the integrated apple does right now. i think with what's going on in that service business and the margin structure, i would probably be willing to pay 20 times running rate ebitda for it the same thing goes with the google aspects, in amazon's case, if you were to break up the retail part from the cloud, there might be some ramifications because the cloud has funded very competitive price behaviors from the retail segment. overall, i think you're looking

at a very, very long time period before anything bad happens, and if it does, probably wall street will look as they did in past cases and say, hey the parts ar worth more than the whole. we did analysis, i've probably been doing some of the parts analysis for 30 years, and it's one of the reasons why takeout premiums are higher than the current premiums because somebody sees a hidden asset in these companies that has enormous value and these companies, the technology companies, what is not really appreciated is the distribution power and the returns that that distribution power gives the companies. and this does not produce harm for the consumer, so i think it's just a beltway issue. the public doesn't want this the users are continuing to use, and certainly the advertisers are still there. they're growing six times faster than the ad market. >> with the exception i guess of

all the election stuff around facebook, i don't hear the consumer complaining, do you >> no. they're not. i mean, to a great degree this is sort of an activist issue, but politicians are taking it seriously. listen, the complaints generally on the left and the right have been different, but you saw kevin mccarthy, someone who is seen as very pro silicon valley. he's talking about it. you have republicans now not just talking about the bias issue, thooey're also talking about the privacy issue. so you have the antitrust issue. then you also have washington wanting to regulate the companies and if they see that the antitrust issue is taking forever, it might make congress more willing to try to take action, do what it can on the regulatory side to try to tamp down these companies, whether it's on the privacy issue, whether it's on content moderation or something else >> i feel like jimmy we're playing a little bit of regulatory roulette because you've got all these doj, ftc.

everyone seems in d.c. to be tripping over themselves to show that they're not just sitting there, they're doing something, but do you think it will end up in anything? >> listen, do i think that congress might -- that something might have happened with antitrust, the odds of them breaking up four of the biggest companies, you know, in the world i think are unlikely, there might be fines or they might have to change their behavior, their business practices in some way. do i think congress might pass some sort of privacy rule, sure. look at the gdpr in europe, that is hardly killing facebook and google who have actually increased their market share of that ad market just because congress does something doesn't mean it's going to kill these companies. >> not a lot of time left, larry. quick answer, but are you as a fund manager selling apple, amazon, facebook or google because of these headlines. >> oh, no, no, quite the contrary this is -- it's a beltway issue.

the reason that i would sell these stocks, brian, is if i were worried that interest rates were going up and i think chairman powell took that one off the table early this week, so i think it's really blue skies ahead for these companies. >> making elizabeth warren mad right now. >> tremendous consumer services. >> what'd you say jimmy? >> i said we're making elizabeth warren mad right now by saying there's nothing washington can do i think they're going to try to do something. >> you bring up a good poin. aside from trillions here and trillions there for everything else, how many democratic candidates are there, 23 i think there is, they're all going to trip over themselves to promise the world part of that's going to be big tech regulation, but is it just sort of election promise that epnds in nothing, g jimmy. >> do i think if a democrat is elected and maybe president trump too, are they going it push i think congress will do something. the question is ultimately will what congress does, will that

actually hurt these companies or actually strengthen the incumbents because they can deal with the regulation? that's what we're seeing in europe. >> that's the irony. you've got facebook, tim cook last night, please regulate us you know why then they're smart then the little goi canuy can'ti because they can't afford the lawyers to manage the regulation it's genius. >> bingo. >> thank you both very much. have a great day. coming up, we're going on the hunt for yield one chart that you've got to see that may power equities higher u. but first, if you are heading on a vacation today, you might want to double check your cruise itinerary because if you're going to cubcuba, you'ret going to cuba. you need to buy a car

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. welcome back, we have a big interview coming up on "squawk box," investor day yesterday promising all kinds of payouts to investors but the stock not reacting we're going to ask him why he thinks it's not and also what he thinks about the -- you're going to find out 8:30 a.m. eastern time. outside that interview, let's find out what else you're going to be talk about today what are we going to be talking about today? >> naturally

uts government announced that new travel related sanctions on cuba this could leave cruise ship passengers high and dry. the new regulation wils will no longer allow cruises depart u.s. ports to visit cuba. it was announced yesterday it goes into effect today there are no exceptions. the trump administration says the measure is a response to what it calls cuba's destabilizing rule in the western hemisphere including its support for the government of president nichololas maduro in venezuela. >> if you've got a cruise going to cuba, check your itinerary. you might have an extra day on the sea. >> if you think you're going to cuba today, you're probably not going to cuba today. we all know if there's an emergency you should dial 911. maybe some of us need some reminding that a lack of tacos is not a real emergency. a police department in louisiana got a call fromone hungry patron at a local taco bell because the location was apparently out of both hard and soft taco shells the department took to facebook

to remind locals that while such a shortage is a travesty it is not something police can help with. >> it's expensive when you call 911. >> that's a very fair point. >> they're on the clock. that's taxpayer money. secondly it's another example of what we call fwp. >> do you know what that is? >> first world problems. these are not real problems. >> it is a problem, if you go to taco bell, there are no tacos, what do you do. >> >> i have gone to taco bell many times, i have ordered a bell, and they have never had it. >> a what? oh, brian. >> i've never called brian no bells, thank you very much. it's wednesday on deck, more on the big slide in bond yields your next guest says this is no time to panic. we'll give you a play book for your money. plus, forget facebook, apple, amazon netflix, google, the faangs, we're going to show you a company nobody is talking about but us that has blown their returns out

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good morning, and welcome back if you are just waking up after yesterday's monster rally, second best day of the year for the dow, we've got good news if you own equitiesment dow futures are up nicely. we're up 150 points right now, the powell put, the fed follow through, whatever you want to call it, looks like it could continue today futures higher across the board. now bond yields, they are ticking little bit higher, but they're still well off where they were a year ago, the ten-year is yielding 2.13% this may be the most interesting chart you've seen in a long time and it comes to us courtesy of our friends at bespoke investment group we talk about how the t note, there is no alternative, if bonds get so bad you kind of have to go to stocks because you

need to make some money, especially if you're trying to retire this is a ten-year chart of the ten-year yield which is in orange and the dividend yield on the s&p 500 which is blue. they have converged right here the dividend yelled of stocks is effectively the same as what you're getting on bonds. in other words if you're just looking for that income, you're not getting any more from bonds than you are from stocks that may explain why we saw stocks take off. joining us now is michael farr i think this chart's interesting. do you think this someone of the reasons outside of the fed that people piled into equities yesterday? >> i think no question, brian, good morning, yeah, i think it is when you get paid the same thing to own some blue chip stocks that actually can go up, it makes a lot more sense to me to own those things where you can have more of an upside than absolutely lock into that ten-year bond yield. >> if yields keep going down, you think equities could continue to go higher? >> i think there's no question about that the only thing that at a certain

point, you know, we've sort of touched it a couple of times in the past couple of weeks, when those yields start really going down as they have, i mean down to 212 on the ten-year treasury, people start worrying about why. you know, too much of a good thing can be wonderful in stocks, but in the bond world too much of a good thing can be worrisome. you have to wonder why expectations are slowing and why so much money is going into that sa safe haven >> did the market overreact to the fed yesterday? >> no, but i think jay powell had his second policy error or at least pr error. you know, when he said last fall that we weren't even close to neutral, markets reacted they hated that. yesterday seemed to be he was reacting to sort of a promise of a policy or a suggestion of a policy, but nothing really in the market he messaged, i think, early, and you know, it was that draghi

message that we heard during the recession, we're going to be there for you. i think it was a little too strong time will tell, but as an investor when you hear the chairman of the fed say i've got your back, you take that to the bank, and i think that's what investors are doing. stock prices are going up. i think the greatest risk right now is not to be invested and stocks aren't cheap. >> 21 dow components yield more than the ten-year bond yield michael farr, real pleasure. have a great day in d.c. time for your morning rbi. this stock has returned more this year than any of the faang stocks it's got no attention from anybody but us right now roku shares up 220%, better than the best performing faang stock, it is the best performing ipo if you count where beyond meat first trade happened, roku is the best performing ipo -- it didn't ipo this year, but it's the best performing stock

recently ipo'd this year roku, can we say we will roek you? that's it for "worldwide exchange." squawk box will pick up the coverage next.

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good morning, market rally, futures pointing to a higher open one day after stocks tund in their second best session of the year tech, though, remains under fire leaders from some of the industry's largest companies will be asked to testify before congress about their market power, and trade talks are ongoing. u.s. and mexican officials will meet at the white house today. it's wednesday, june 5th, 2019 and "squawk box" begins right now. ♪ live from new york where

business never sleeps, this is "squawk box" ♪ jack be nimble jack be quick >> good morning, welcome back to "squawk box. we are live from the nasdaq market square. i'm becky quick. check out the u.s. equity futures this morning even after the big gains we saw yesterday, you are seeing that momentum continue this morning yesterday we saw the markets up across the board the dow was up 512 points which is a gain of 2%, and it was the least big winner of the three major averages the s&p was up by 2.1% and the nasdaq up by 200 points, a gain of 2.6% dow futures up by about 165 points there were the gains from yesterday up by 2% for the dow industrials. check out also what's been happening in the treasury market because across the board yields really are what we've been watching for quite a while the ten-year yieldin