global headquarters. here is your five at 5:00. president trump says renewed trade talks with china have already begun. china is promising to build an even playing field for foreign companies. a live report from beijing coming up. from one trade deal and fight to another why the u.s. could hit europe with more tariffs and here's a hint, it has to do with a big old jet airliner opec agreeing to extend production cuts. up next, key meetings between the cartel and russia.

plus nike is pulling a sneaker featuring an early american flag after colin kaepernick complained. those details coming up. it's tuesday, july 2, 2019, "worldwide exchange" begins right now. ♪ good morning welcome to "worldwide exchange." i'm dominic chu. brian sullivan is reporting from opec in vienna we'll hear from him in a moment. first let's get you up to speed on what's happening with the markets. futures pointing to a modestly lower open right now if these futures losses hold into the start of regular trading, the dow would be off by 52 points. the s&p down by 5. the nasdaq down by 23. treasury he yieyields also in fa

global yields take a leg lower the ten-year 2.01% here. two-year note yields, 1.77%. let's go worldwide asian trade probably a little bit more mixed the nikkei in japan up by 0.1% the hang seng up over a percent. the shanghai in mainland china just about flat. the kospi in south korea up. in european trading, as you look at the dax, it's off by 0.1% the cac in france flat the ftse 100 up by a third of a percent. trump says trade talks with china which stalled out in may have already begun following his meeting with chinese president xi jinping at the g20 summit this past weekend. speaking in the oval office yesterday, the president says renewed talks are being held by phone. he says any trade deal will need

to lean in the u.s.'s favor. >> obviously we can't make a 50/50 deal it has to be a deal tilted to our advantage. if we're not doing that, we're taking in a fortune from tariffs, unfortunately we're hurting china by doing that. many of their he companies are leaving and going to a non-tariff state >> president trump and president xi have agreed to hold off on imhe posing new tariffs on imports. premier li says it will ease ownership in foreign seshgts by sectors by the year 2020

this was a big deal, the idea that you could own companies in mainland china, right? >> that's right. this really matters because it means firms on wall street will be able to expand businesses faster in china than they probably thought the premier said china would move up the timeline where foreign firms could have a wholly-owned entity in the chinese market by 2020 this is one-year earlier than expected up until now firms were in the process of applying to have 51% jvs with an eye of having a wholly owned entity by 2021. some companies that are seen to benefit or that have been in the process of applying for those 51% jvs or have already gotten the approvals are jpmorgan,

morgan stanley and ubs this could affect fund management companies some have wholly owned entities such as blackrock, now it looks like companies like fidelity, vanguard, blackrock and invesco, in theory they could offer fund management products to retail investors, which is what many of them were hoping to do in the market the premier did not reference the trade deal, but a lot of people here have been seeing this as a message by beijing to the u.s. and beyond that china does make good on its pledges, and it plans to open up faster than people thought. when i spoke to some financial people here, they said on the whole, this is significant but at the same time there's a certain reality on the ground of how quickly you can open up and expand your business here because the licensing process could be arduous >> eunice yoon, thank you very much for that update

in other trade headlines, the u.s. is stepping up pressure on the eu in a long-running trade dispute over aircraft subsidies. the u.s. trade representatives office is proposing $4 billion in additional tariffs on european goods the list includes things like olives, italian cheese and, yes, scotch whiskey that's on top of the products worth $21 billion announced back in april the u.s. and european union have been threatens to impose billions of dollars in a tit-for-tat tariff conflict. planes, food, all sorts of things in a 15-year fight with the wto over subsidies given to boeing and airbus. let's head to brian sullivan in vienna, austria, for the latest update on what's happening with the oil markets the big question is, is there a production cut deal extension in place?

it's unclear >> there is a production cut extension deal yesterday was epic everybody thought you will go to vienna, it will be a couple hour meeting, it's in the bag no problem anything could have been further from the truth it went all day. it went into the night 1.2 million barrels a day, not for six months but for nine months why does that matter it's a couple extra months, but the reality is that if you see increased u.s. production and you see a potential slowdown in global growth, which means less oil being used that means more oil is on the market when there's too much of a commodity, prices tend to go down this announcement, this decision yesterday designed to blunt a slowdown combined with increased u.s. production, but the story today, what they call the opec plus meeting is all about russia today is the day that opec members meet with non-opec

members. but there's a few members, the member is all about russia yesterday they announced also some kind of a cooperative agreement, long-term deal with russia russia still not part of opec formally, but as opposed to sort of the neighbor living next door, they're part of the family now that comes and stays a couple times a year. the question is what does that agreement look like? we'll find out today it does add 11.2 million barrels a day to the opec oil fire power. >> i mean, you mentioned the demand side of things. i mention this only because we've been talking so much over the course of the past few weeks about this idea of global purchasing manager indices, regardless of what country they're at have been showing signs of a slowdown. is there a sense that that demand destruction could be a real issue if prices are propped up too high at this stage? >> yes, there is

two sides to every equation. demand and supply. the viewpoint is that demand will slow down, not collapse i will say this, the saudi oil minister came in this morning and he said he saw a pick up in demand from some opec nations in the second half of the u.s that dmeenoesn't mean the u.s. europe, but opec nations the issue is supply. the issue is the u.s. pumping 12.6, 12.7 million barrels a day, probably headed to 13 u.s. oil production has doubled in the last five years for 30years opec was sort of the big, bad oil price setting group. it had a four-letter word. the last couple years the u.s. has come out of nowhere, taken market share not become the price taker but the price maker. and opec obviously sees that enough of a threat to say okay,

russia, you're not a member. we want to make an agreement with you that we all will go into this together it mutes growing u.s. power. that's what that arrangement last night does. today we're going to hopefully learn more about it. the russian oil minister is inside that building hopefully they'll figure out more about what this deal is like i have a great guest coming up, he'll tell you why yesterday's meeting, while expectations were low, was much bigger of a deal than many people may have thought. i'll see you in a couple minutes. >> thanks, brian sullivan. glets balet's get back it o markets. if the futures losses hold, the dow jones will open down about 53 points. the s&p down by 5 points the nasdaq down by 23 points after of course hitting record levels in yesterday's trading.

joining us now is the president at salt financial. we've heard a lot in the first few minutes of this show we talked about china/u.s. trade. europe/u.s. trade. we talked about the opec oil dynamic. in your mind, what stands out as the primary motivating force in markets that are sitting near record highs for the u.s.? >> we hit a record high yesterday with the s&p all year it's been krdriven by h fed or trade any time we have great news from the fed, markets rally any time we had a good tweet on the china deal, the market rallied it seems like the market is looking for a reason to continue the run the good news is it's been a broad participation. it's not just technology leading us one way we've had participation from just about every sector within the s&p. with the exception of healthcare >> is there a reason why the activity here would signal some caution? it feels like we've been saying

the same thing technology has been doing better all parts of the market are participating. yet we cannot crack above this current level of near record highs. we have not been able to make a real leg higher what gets us there? is it just a trade resolution? >> i think a trade resolution is huge, but keep in mind it's also unpr unpredictable. we had a pause on the tariff war coming out of the g20. you couple that with powell's comments a month ago, now you have a compounding benefit to the market of positive sentiment. is it a risk-on sentiment or risk-off one thing we advise advisers and portfolio managers is to always monitor the level of risk in the portfolio. you can't predict prices you can't predict a lot of things what you can control is the level of risk in a portfolio that's what we help kleclients o

>> are you aggressive more are you more conservative these days is it more balanced? how do you take it with stocks at record highs in the u.s.? >> we have two funds one that's a risk-on fund and one that's a risk off. >> where are you seeing most of the activity >> a lot of activity on risk off, which is more of a defensive posture going into q3. we were talking earlier about energy energy was a huge help in the risk-on fund in the second half. that's been completely taken down in q3 with a more tilt towards technology on the defensive sector, consumer staples continues to be our call we're a quantitative model, so the models guide us which way to go right now consumer staples would be our biggest bet for q3. >> do the quantitative models that you guys run, do they take into account valuations? when we talk about consumer

staples, we talk about the idea that so many people plowed into the trade they have become more valued more richly than the technology market. does that worry you? >> the beauty of being a quant model is that it takes the emotion out of it. it was good to see the risk-on and risk-off funds outperform the s&p. typically in a rising market the risk-on will do better you will lag with the more conservative fund. but this year both are outperforming. it's been, again, big contribution, so many sectors in the s&p are performing so well >> all right thank you very much for that update >> thank you when we come back with the show, we'll head back to vienna where brian sullivan is. we'll talk oil prices. later on, move over beyond meat. there's another brewing company, it's a major ipo t could , it c

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go to xfinity.com/moving to get started. welcome back to "worldwide exchange," i'm brian sullivan. we're here in vienna, austria at the opec headquarters. 14 poke membopec members, 10 no members trying to ratify this

new agreement announced last night. what does that mean for the oil markets and what does it mean that russia is coming into the family let's welcome in our next guest. so much expectation, you don't need to go to opec nothing will happen. anything was further from the truth. yesterday a much bigger dell for o deal for oil markets >> i agree this is a landmark system. this will take care of their response for shale oil for many years, five years, eight years, whatever it takes. >> i asked last night during the press conference, i asked the saudi oil minister, i said is this agreement with russia specifically being done to blunt the growing impact of u.s. shale? he didn't exactly say yes, but he did reference the permian

basin. in your mind is this really about opec needing others to combat our growing market share? >> i think the saudi oil minister has been explicit saying that russia is necessary to cope with the oil situation as it is now i think this current round of negotiations started in osaka between putin and mohammed bin salman, and then moved here for the ministers to act upon a larger context, which is the charter you just mentioned that charter establishes the sort of framework for a lot of oil producers to get together and respond to slal oihale oil what does that mean? if demand does not take care of the growth in shale oil, these producers will have to adjust and share the pain it need not be proportionate because saudi arabia has been taking a big part of it, that might continue, still they will be in a framework where formal

membership, not opec, opec plus some people call it, we call it the vienna alliance, but it's a larger group >> there's 24 countries now, opec is 14 plus 10, it's all about the russia influence do you believe this will be enough to keep prices stable if we go to 13 million, 14 million barrels a day and global demand tapers off, that's not a good equation for price stability. >> i think that's exactly what they're looking at when russia, which is the second largest producer in saudi arabia, the third largest, get together to deal with what the largest producer is doing, it tells you that they see this problem coming up and are looking for a way to deal with it yes, on prices they would be worried about it they can't speak openly about prices, so the proxy is inventories. they changed the metric for

inventories. they'll be trying to run down inventories in the world so prices can be sustained. >> real pleasure it's the old adage, if you want the story, you have to get on a plane. i'm glad we came a long way. we'll learn more about this agreement all day long what does it mean? are they second cousins or is russia moving into the house that's not all on "worldwide exchange." we have your second half playbook it was a solid first half to the year for stocks. the best june since 1938 what have you done for us lately market your second half playbooand k much more "worldwide exchange" coming up after this break forte 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.

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in corporate news, ab inbev seeks 9.$9.88 billion for its aa unit there are more than 50 beer brands in that region. coming up on the show, the competition everyone in the office will be talking about today. it's a rivalry that goes back centuries. the details when "worldwide exchange" returns.

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let's check on the other top headlines. phillip mena is live in the nbc news it room in new york with the latest >> good morning. for this year's annual fourth of july festivities in d.c., president trump announced in addition to a fighter jet flyover tanks will also be included, though they will be parked to prevent damage to city streets. tributes are pouring in for 27-year-old los angeles angels pitcher tyler skaggs he was found dead in his hotel room on monday afternoon a scheduled away game with the

rangers last night was postponed. today's women's world cup match-up is a rivalry that dates back to 1775 the u.s. women will be taking on england. they're coming off a couple of tight games against spain and france whoever comes out on top is going to face off against the rin e winner of sweden/netherlands that will be for the final on sunday back over to brian in vienna >> thank you very much if this meeting like last night is still going at 9:00 p.m. vienna time, we'll ask them to put that game up on one of those big screens. why not. it's a big day there's a lot going on here in this opec meeting 14 opec member nations. coming up after the prbreak, so comments from the saudi oil minister which may open up eyes.

if you're watching early this morning in texas you'll want to hear what he had to say. it doesn't bode well long-term that's coming up next on "worldwide exchange. ...you have? (vo) automatically sort your expenses and save over 40 hours a month. (danny) every day you're nearly fried to a crisp, professionally! (vo) you earned it, we're here to make sure you get it. quickbooks. backing you.

with tough food, your dentures may slip and fall. fixodent ultra-max hold gives you the strongest hold ever to lock your dentures. so now you can eat tough food without worry. fixodent and forget it. welcome back to "worldwide exchange." thanks for being with us let's check futures. we are showing some slight negativity in the markets after a record high yesterday for the s&p 500. if these futures losses hold

into the opening bell, the dow would open down by 40 points that's a slight improvement. the s&p off by 3 points. the nasdaq down by 18. let's head back out to vienna where brian sullivan is. this is a big weekend and a big couple of days for opec and friends. >> it is even if you don't care about opec or oil, here's what happened last night. you had three big players in oil. a lot of country produce oil, but you have three big player, the united states, russia and saudi arabia each a couple years ago producing about 10 million, 1 1 million barrels a day. now the united states going to about 13 million, 14 million barrels a day. and saudi arabia and russia coming together as part of this opec plus charter that they

agreed to last night so three merged into two that combined two is now bigger than the united states it's interesting that they're blunting that american force last night i asked the question at the press conference of the saudi oil minister, i said is this being done to counter the impact of u.s. shale what he said caught me by surprise wasn't bullish long-term for the u.s. oil markets >> i have no doubt in my mind that u.s. shale will peak, plateau and decline. the question is when until it does, i think it's prudent for those of us who have a lot at stake and want to protect the global economy to keep adjusting

i think there's reason for us to stay vigilant and watch for adjustments. >> so, if you're a u.s. energy stock investor, you have already been burned over the last ten years or so. we know how tough it is to make money. it's been the worst performing sector of the last six and 12 months, now you have the saudi energy minister coming out saying the permian basin is a big deal, but we feel those fields will drain and maybe faster than some people will think. that's the long-term bear case for the u.s. oil market. you say okay, he's from saudi arabia, he has his position. he worked and lived in midland, texas and odessa, texas for a long time. he was out there in west texas for years. he knows those fields intimately i'm sure many in america would

disagr disagree so they're not optimistic on the permian basin. >> it could be 50 years, 150 years, 250 years we'll see what happens when the u.s. theoretically peaks in other headlines, order is being restored in hong kong today after protest violence overnight. cherry ka chery kang joins us from hong kong what can you tell us about the investigations by the police and the attempted storming of the parliament building? >> thanks. we are seeing the legislative council's president calling where we are right now a crime scene. we see police officers gathering evidence, collecting some of the flyers that were left behind by some of the protesters after yesterday's violence it goes to show how this latest development takes this anti-extradition bill protest in

hong kong to the next level, to an unchartered territory, i would say. so at this point we saw young protest spraying graffiti inside the legislative council, just vandalizing the chamber of this legislative body in hong kong. really trying to make their calls against this bill and calling for the resignation of carrie lam more visible. i do have to point out this was a smaller splinter faction of this bigger opposition to this extradition bill in hong kong. yesterday, marking the handover anniversary for hong kong to china 22 years ago, 500,000 people demonstrated in a peaceful manner.

this latest development might throw into question the sustainability of the weeks long protest opposition to the government of hong kong and this controversial bill in the meantime, carrie lam called for rule of law and also promising that she's going to listen better to the hong kong public including the young generation of the city dom, back to you. trade tariffs, interest rates and iran were some big issue force inve rates and iran were some big issue force inve for investors first half of the year and they'll be top of mind for the second half. seema mody has your playbook for the global markets elections, geopolitics and trade will keep global investors on edge in the second half of the year first, the volatile and drawn-out trade discussion between the u.s. and china will

push more american companies to shift production out of china with countries like vietnam, cambodia and india becoming bigger destinations for manufacturers, retailers and technology companies second, expect iran to become a bigger geopolitical risk further conflict between the u.s. and iran could raise tensions in the middle east which accounts for 20% of the world output disruption could send prices at the pump higher. to lessen the blow u.s. energy companies will build out infrastructure here to become less dependant on the middle east for oil plenty of elections and changes to leadership in the uk, canada and argentina, but financial markets will focus on the race for mario draghi's job, perhaps the most powerful job in europe any departure from draghi's approach to saving europe from recession could disappoint investors. >> thanks for that update, seema

mody let's bring in silvia jablonski. we heard seema with the update on the global outlook. does that bode well, i guess, for the second half outlook? should we be bullish given those risks or more tempered with markets near record highs? >> i think we should be bullish with the caveat of a defensive feeling behind our bullishness a lot of good news came out of the weekend. g20 went better than expected. we have some signs of a trade truce. we have reduced pmis, reduced earnings, and i think trade was the bigger political overhang. we have uncertainty with growth, but more of what feels like a trump put and a fed put which can help the markets

it's a mixture of both >> what seems odd to me is this idea that technology has been far and away the best performin sector in the s&p. that says growth should be picking up you mentioned all these signs of a possible slowdown globally where is the disconnect there? >> if you look at tech and semiconductors, some of these names, they have rallied but also been the biggest names to pull back in december and may when some of these geopolitical tensions and other factors like slowing pmi come into the market it almost seems like when we have no news in the market, it's good news. look at what happened this weekend, the huawei suppliers rallied. the robotics names, the chipmakers all did well. in the short-term we have positive momentum for those names to continue growing. what could happen is that we may see some of our gains reverse if that trade deal doesn't come to

fruition if we don't get the fed cuts that the market expected we have to wait and see what happens with earnings. china tariffs were not in play for that long. it's possible that there is an impact to the bottom line and there's an impact to the consumer we have to see what happens in terms of the long-term trajectoriful so the company that you work for manages a number of etf products that show bullishness or bearishness in parts from your mind, in seeing the fund flows, is there any indication right now that there is more of an aggressive risk taking profile for investors and traders or is it more tilted towards consumer staples, utilities, real estate >> i would say for the first time we see flows across the board in both. in the short-term, traders love it yesterday we saw 200% to 300% increase in semiconductors and

technology and anything china related. china etf, china "a" shares, robotics, everything f.a.n.g., tech, china, huawei, everything doing with tech rallied yesterday. we saw double digit returns and change in volume and growth. but over time we have seen investors or heard investors talking about there will be a lot of volatility in the market. i want the short-term gains, but longer term i want to look at healthcare, late cycle performers, names that did better in december when the rest of the market got banged up and have strong balance sheets and strong dividends short-term, f.a.n.g. growth opportunities right now. long-term, reposition with some defensive names. >> silvia jablonski, thank you for that update. thank you. coming up, just before independence day, nike launching then nixing a pair of patriotic

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ibm watson. welcome back let's find out what you will be talking about today around the water cooler time for the top trending stories. frank holland is here with those. this nike story is fascinating >> this is a talker. has people talking online right now. nike is pulling a flag themed sneaker from distribution days before the fourth of july. the shoes are called the airmax 1 usa, it features an early flag with 13 stars that represents the american revolution. colin kaepernick reached out to nike and expressed concern that the flag was used during the era of slavery there's also reports that this flag has been used by some white nationalist groups

>> is it fair to say -- i'm looking at them now. i grew up seeing that flag in my high school civics class, anywhere else. does this rise to the level of the conflict over the stars and bars and many state flags in the southern u.s.? >> i'm not sure it's at that level. i think some new appropriation by white nationalist groups is one issue, colin kaepernick is a sensitive person and a big person for nike. he's one of their lead endorsers. i think there's two sides to this i think nike is siding with colin kaepernick and people see it as offensive because the people that see it as offensive are clearly the people they believe are the target audience. it is a huge move here something to watch >> ariana grande's latest tour is breaking records and not just

in ticket sales. she has been registering voters at each stop during her tour she is partnering with headcount to register voters the group signed up 17,000 voters this year, more than any other year before a presidential election >> this is interesting because ariana grande, like colin kaepernick is an influencer. >> absolutely. >> people gravitate towards her. she's a huge pop star. does she have what it takes to then influence the election? that's the talking point, right? >> i think the thing here is that we're getting people more civically involved i think registering voters is a good thing racross the board the more people involved in the process the better >> on that point it's huge. coming up, more from brian

back in vienna he's got a lot coming up here, brian sullivan >> yeah, there's a lot of complicated stuff going on in the building but we'll answer two important questions for oil and energy what happened yesterday? and why do you care? the answers to those questions right after this as "worldwide exchange" continues. but do you take something for your brain. with an ingredient originally discovered in jellyfish, prevagen has been shown in clinical trials to improve short-term memory. prevagen. healthier brain. better life. my mom washes the dishes... ...before she puts them in the dishwasher. so what does the dishwasher do? cascade platinum does the work for you, prewashing and removing stuck-on foods, the first time. wow, that's clean! cascade platinum.

welcome back to "worldwide exchange." time for your executive recap. a machine at a facebook mailing facility alerted employees yesterday that a package might contain the poisonous substance sarin. the facility was evacuated the local fire department said no employees were exposed. an investigation into the incident is under way. drugmakers initiated a new

round of price increases yesterday according to the "wall street journal." 20 companies increased their prices of over 40 prescription drugs. some drugs saw their prices hiked by as much as 50%. u.s. office vacancies are on the rise and new office construction is stalling out office vacancy is up 0.2% since this time last year with vacancies increasing in 43 out of 79 met crow arro areas surve. now let's get back to brian sullivan he's live in vienna at the opec headquarters building. good morning again >> good morning. good to see you. let's talk more now about what is going on inside this building joining us is clay siegel from j

genscape what happened last night and what is happening right now and why do we care why does our audience care about what's happening inside this building if you're opec, you have to ask yourself that classic question we all had in job interviews where do you see yourself three years from now the thing that's forcing the question is the surging production from the united states when you ask the saudi energy minister yesterday what's the approach, he said we'll wait it out. we'll learn to live with it. you'll see more and more u.s. oil entering the international market in competition with these guys look at what's happening back at home the permian basin over the next six months, just that basin will surpass in terms of daily production each opec member country except saudi arabia. that's just the permian basin. that's five counties in west texas. total u.s. has already purr

sassed saudi arabisass surpassed saudi arabia >> we all knew who opec was, there's a bill going around congress that would ftry to outlaw organizations like this do you think this is an acknowledgment that opec needs some help? >> they want to balance the market, they want to provide the right amount of oil to their customers and the marketplace. they are focused on inventories. they want inventories to be normalized >> what does that mean for prices, for gas prices and oil prices what does that mean normalization of inventories >> there is not always a direct connection between the inventories of crude oil and prices for transportation fuels. but generally speaking, a balanced market is in line with the prices we've seen recently >> our audience probably doesn't trade oil like your clients do, but they do put gasoline in their car.

maybe they own oil and gas stocks the ultimate outcome for them is what happens oil and gas prices longer term. if opec does not have russia and the ten non-opec nations with them now more aligned, do you see the price of oil likely to go down more than likely to go up >> the biggest x factor is on the demand side. if we get pulled in the direction of more tariffs, more trade concerns, economic slowdowns for gdp, that's bearish for oil prices that's the x factor not discussed. >> they sort of addressed this last night and this morning, the saudi oil minister saying he saw demand stabilizing globally among the owe messapeopectatione second half of the year. how much excess oil is on the market >> where we check inventories, in cushing, oklahoma, west

texas, levels are still near the highest we've seen in texas gulf coast, inventories are a bit lower. you've seen high refinery utilization. they're running the crude oil. we're exporting more from corpus christi and houston. opec come out of this meeting more or less powerful than when it entered >> about the same. >> about the same? even with this charter they sort of got now >> they did what they had to do. opec and non-opec cooperation has been going on for years. it's good they came here refreshed it and rebooted it for the future >> clay siegel, thank you very much dom chu, we'll be here all day for the opec meeting where 24 countries in there -- you wonder at some point do a few representatives from the permian basin stop by and step into an opec meeting in the future

that's a meeting i would pay to see. >> brian sullivan, thanks for your updates. let's turn back to the markets. futures pointing to a slightly lower open for the stocks. joining me is mark avalone you can see a 50-point drop for the dow if these losses hold is this a market you want to buy right now? >> i think a lot of good news in the market is out, and that's why you saw the run up yesterday and the pause this morning people are digesting are we having meaningful progress with the china trade talks or is it rhetoric coming from political leaders who benefit from a calming down of tension. that's the question. we have global instability we have weaker earnings. we do have uncertainty with china trade. i think it's a good time to pause and not change what's been working for you, not change things up too much

let's see how a lot of this shakes out >> hold on one second. we have a big happening now in vienna brian sullivan, we'll go back to you. what are you seeing? >> the iranian oil minister is leaving the opec plus meeting. he's in the car right now. as i was signing off, he came out, you could see most people behind me, about 250 journalists ther from around the world are at this meeting the iranian oil minister and his advisers there we got a chance to ask him some questions yesterday. the reason we care about this, iran had been seen as the sticking point last night at the dinner it was all hugs and kisses. but really all the reports said that iran was being tough in this charter they wanted to make sure they and the other opec members had been heard effectively by opec leadership it was not all about russia. that other opec minute centers mattered the iranian oil minister leaving

this meeting last meeting in december he left early as well. not sure if this is a sign of discord, the fact that he's leaving the meeting, not even noon here. maybe he just wanted to catch an early flight back to tehran. we'll do some reporting. iran out of the opec meeting back to you. >> brian sullivan, thank you very much for that iran a key focus here. mark, back to you now. is oil, is energy that sector a key focus for investors now? >> you want to see what happens out of that meeting. opec is the biggest bunch of cheaters in the history of the business world that's saying a lot. they have a hard time keeping to production limits. when they get together and announce such a thing, i'm not sure the markets are scared automatically. i want to see them implement them and make investment decisions based on how effective these countries are on unifying their approach >> mark, favorite sector right

now? >> i think technology is what got a lot of people to where we are. the growth sector has room to run especially if we see more compatibility and friendliness with the chinese on the trade front. >> all right thank you very much for that update that's it for "worldwide exchange." "squawk box" picks up coverage coming up next with markets slightly lower after a record high. progress update on china trade talks. we'll show you what president trump said and how china responded overnight. a rally in the chip stocks helped to drive the s&p to a record high yesterday. futures pointing to a modest pullback in early trading. a full market rundown is straight ahead. and tim cook is refuting a "journal" report about the departure of jonny ive.

♪ good morning welcome to "squawk box" on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. let's start with yesterday's record close from the s&p. getting a boost from apple and microsoft. it was the technology stocks and the financials that led the way yesterday after that trade truce that we saw with china you can see now the s&p is up 26% since its christmas low. up 22 points yesterday a gain of about three quarters of a percent the nasdaq is 1% away from a record the dow is less than 1% away as well looking at u.s. equity futures, not getting much help towards those goals. you see some red arrows. dow futures indicated down by 57