good morning, it's 5 a.m. at cnbc global headquarters here is your five at 5 in the hot seat, federal reserve chairman jay powell heads to capitol hill today we'll break down the key things you need to watch. that's straight ahead. retreating from records. the dow on track for four straight days of losses. what will stop the selling maybe it's trade top u.s. and chinese officials wrapping up the first high-level talks since president trump and xi went face to face at the g20 summit. levi strauss trying to soothe investors after a rough

earnings report. we're digging into the numbers on that and much more. it's primetime for lady gaga the pop superstar teaming up with the world's largest online retailer it's wednesday, july 10th. "worldwide exchange" begins right now. ♪ ♪ good morning and welcome to wor"worldwide exchange." i'm courtney ragan in for brian sullivan stock points to another loss for the dow. this would be four straight losses if we tack on to this session. the dow more than half a percent off of its record high the s&p 500 and the nasdaq also indicating a lower open. we know we have a number of hours still to go. let's get a check on what's going on in the bond market. you can see the yield on the ten year, 2.108. it's actually quite a move from what we saw on july 3rd when we

were at 2 1/2 year lows there at 1.9 and change that jobs report really changed a lot. let's go worldwide and check and see what happened around the world while perhapsyou were sleeping overnight in asia you can see we had a mixed picture. the japanese nikkei down slightly the shanghai composite down shy of half a percent. they did tack on some gains. as the world waits for jay powell take a look at europe. at least right now it's a sea of red except for italy stronger by 3/4 of a point again, also european markets really hinging on what's going to happen today on capitol hill with the fed chairman. that's the big focus he heads to capitol hill today later this morning he's going to be testifying before the house financial services committee this is the first day of two days of testimony so what do investors want to hear joining me now is dan beru, chief investment officer at

palisade capital management. dan, it seems like everyone is expecting that we are going to get a quarter of a point drop in interest rates when the federal reserve meets at the end of the month. is there anything that jay powell can say today to sort of change investor sentiment? >> i think that if he -- well, he's got to do a quarter point because it's so, so much expected i actually think he's got a good indication that there's a further quarter of a point drop in rates on a going forward basis as more of an insurance measure against what's likely a continuing weakening backdrop on a global basis and i think that's what he's got to contend with. you have german bunds now with a negative 30 basis point yield. i think everything is relative from an interest rate standpoint the united states looks like a deal. slowing economic growth

tends to be something not only our markets are focused on but so is the federal reserve. they're paying attention to the global market which seems worst off than what we're dealing with in the united states >> i think it's very significant. we also have to look at the dollar relative to other currencies around the world, too. that's also going to be something that investors should be focused on as well. i think there's going to be an attempt on the fed's part to somewhat cool the dollar down a little bit relative to other currencies because that will be very important to stimulating and keeping growth prospects looking positive in the united states >> that's important, of course, for what's going on with trade as well? >> that's right. that's exactly right because we're in this period right now where the trade uncertainties are just weighing so heavily on global economies so far the united states has escaped some of that weakness but we're coming into the period

of the earnings confessional right now. we haven't really started it yesterd yet. we're seeing the pre-announcements. that's going to be critical, not just what earnings are but what ceos say about the future. >> while we're in the holding pattern for holdings and we don't know exactly what the fed chairman is going to say today, we have a pretty good idea what we think the market expects, what would you be advising your clients to do with the market positioning? >> you can't let the short term cloud a longer term strategy we're going to get through this period of time i do believe there is a trade deal down the road it's taken longer than what i would have expected and what most people would expect, but so far the u.s. has remained a beacon of strength in an otherwise worsening global growth standpoint. from the stand point of strategies vis-a-vis trade, we

still seem to be and still have somewhat the upper hand. >> if there is a trade deal, i would assume the market in general overall will go higher, but there could be certain sectors that would benefit more than others? >> yes. >> any suggestions there for how investors should be looking at that >> we still see a lot of value in areas fliek nansales. i mean, you think that that would -- if we do get a brightening picture on a global growth standpoint, financials should have a pretty good ride we should see a steepening yield curve. clearly industrials, those stocks, the economic sensitive names should also do quite well in that kind of an environment, particularly if you lift the a haze over the growth. >> interesting things to chew on thank you for joining us here. >> yes. >> early off in the day here when we come back, tech in the cross hairs as trade tensions continue to linger.

we'll go live to one of the world's largest technology conferences in hong kong to see what investors are saying. then levi strauss ceo tries to soothe investors following a rough earnings report. we'll tell you what's driving that stock lower. later, it's the one where netflix's pain could be at&t's gain a very busy hour still ahead when "worldwide exchange" returns. causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. healthier brain. better life.

rainy, cloudy deal in hong kong a possible step forward in the u.s./chinese talk negotiations they continue to work out a trade deal people close to the conversation say both sides will continue talks but existing tariffs could be the, quote, new normal. sticking with trade, it continues to be a huge focus on a major tech conference underway currently in hong kong that's where we find our very own argen carpal what's the talk of the town at the tech conference? >> well, cloudy day here in hong kong the big cloud hanging over this tech conference is, of course, this trade story between the u.s. and china i've had a chance to catch up with some really big technology players that are concerned with what's going on with this trade -- ongoing trade dispute

between the u.s. and china one of them is cisco that has operations in china. i had a chance to catch up with the cio. let's listen in to what he had to say >> trade wars don't benefit anybody, and we have to acknowledge that because when you deal with a program like i run called country digital acceleration where you're dealing with governments that have fixed budgets for 5g deployment and a number of other areas, if you have a trade war, then those prices just increase and it unnecessarily con strains their ability to do things like put in 5g networks so clearly they're guided there by cisco saying this could impact the rollout of 5g i've been looking at other areas where it has been affecting areas on both sides between the u.s. and china we saw a huge plunge in vc

investment in tech companies over there in the second quarter. a lot of the vcs i spoke to attributed this to the ground. you see a lot of pain from the semiconductor firms particularly after huawei was put on the u.s. black list some of the companies were not allowed to sell to that company. of course, there's been a sense of reprieve now. the u.s. and china have gotten back to the negotiating table. you heard the umpt s. administration saying it would relax some of the restrictions on huawei. that's certainly welcome even as the u.s. china trade talks resume, even after they relax on huawei, trade top of mind courtney, back to you. >> arjun, huawei really caught in the cross hairs of this trade dispute. you mentioned those reports about relaxing perhaps certain bans on huawei, at least this is what we're hearing out of the trump administration can you tell us a little bit more of those details? you suggested this is the case but do we know why or what kind of relaxations may

be in place, the implications, anything more you can tell us there? >> reporter: well, the administration is able to suggest that they would allow u.s. companies to sell to huawei as long as their components that they're selling did not present any kind of national security risk to the u.s. i think that's where a lot of questions are going to arise now. what actually counts as a national security threat, it wasn't very clearly defined. it's also important that huawei is still on this entity list which essentially means that companies will keep requiring licenses to be able to sell to it so it's not seems like a huge relaxation but there does seem to be positive signs that the u.s. is going to let at least some of those companies sell, potentially qualcomm, intel. still a lot of questions over that the other big black cloudy guess hanging over the discussions as well is how long this sense of relaxation might last. if the trade talks end up going south over the coming weeks,

that could then see the u.s. put pressure back on huawei. a lot of questions that investors and the companies are going to be asking the u.s. administration. >> interesting stuff i also think it's good that we are actually hearing executives talk about their thoughts on trade. i think in the beginning there was so much apprehension on the point of executives to really say anything about trade for fear of also getting kind of caught in the cross hairs. but i'm glad cisco and others are speaking with you. thank you very much, arjun. still on deck, why tivo shares are catching a bid this morning. the company behind run, vicks,ur ht are about to hit a huge milestone we'll explain that next. stick with us. ♪

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picture of new york city which states put it altogether for businesses and which ones don't? cnbc's exclusive study puts all 50 states through the test through more than 60 metrics in 10 categories. the big reveal is today at 8:30 a.m. eastern time. you really don't want to miss it this is the gift that keeps on giving all year round for cnbc top states revealed at 8:30 a.m. big moves today in the early going. levis reported a drop in second

quarter profit due to the ipo in march. they had higher advertising expenses earnings and revenue did beat forecast shares are down by more than 6% in the early going as the company says sales growth will grow in the second half of the year on weakness in the wholesale business and as it wraps up the fiscal year ahead of black friday. it's a very big day for retail helen of troy, that stock is up more than 8% near its 52-week high after it reported better than expected first quarter sales. helen of troy owns braun, vicks, pert shampoo it raised the sales guidance for the year you can see the bump up in shares in the early going. shares of t-mobile are getting a boost. they will replace red hat in the s&p 500 before the start of trading on july 15th ibm completed its $34 billion

deal to buy red hat yesterday. shares of t-mobile are up by almost 4%. still to come here on "worldwide exchange," a big bet and a bold call on crypto from two pioneers in the space. plus, straight to voicemail. the one wireless provider that says it's happening up on the annoying robo calls. thank goodness we're back in two minutes.

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welcome back to "worldwide exchange." if you're just waking up, you can see futures are pointing to a lower open we've improved in the last 20 minutes or so. dow jones industrials pointing to a lower open by 23 points s&p 500 down by 4 and the nasdaq lower by 11.5 points at this point we have a number of hours to go until that opening bell sounds. new developments on billionaire jeffrey epstein who is facing sex trafficking charges. nbc's sarah dallof is in washington with the details. good morning, sarah. >> reporter: good morning, courtney the president speaking out about his labor secretary who is involved in this case saying he feels badly for him but that he does plan to look and get a closer look at a 2008 plea deal brokered by the labor secretary. this morning labor secretary alex acosta under mounting political pressure. >> thank you very much. >> reporter: the president saying he'll be looking very

closely at acosta's handling of a controversial case involving jeffrey epstein. >> i can only say this from what i know and what i do know is that he's been a great -- really great secretary of labor the rest of it we'll have to look at. >> reporter: epstein is now sitting in a manhattan jail cell after pleading not guilty to sex trafficking charges in new york. in 2008 he cut a widely criticized plea deal with u.s. attorney alex acosta allowing him to plead guilty for soliciting and procuring a minor for prostitution now democrats are demanding acosta quit or be removed. >> we should hold this prosecutor accountable he should resign. >> republicans not going as far but wanting to know more. >> if this plea deal doesn't withstand scrutiny, then it would be a job for the judiciary committee to find out how it got

off the rails. >> reporter: acosta commenting on the new case saying the crimes committed by epstein are horrific now that new evidence and testimony is available, the new prosecution offers an important opportunity to more fully bring him to justice meanwhile, the president is distancing himself from epstein who he has praised in the past saying the two had a falling out about 15 years ago and have not spoken since courtney >> sarah, thank you for that update that's a story we will continue to follow. let's go the a check on this morning's other headlines. nbc's frances rivera is in new york for us. hi, frances. >> reporter: good morning. we start with an nbc news exclusive. disturbing treatment of migrant children by border agents. first published on nbcnews.com, our reporters detail the findings of some government investigators who have been interviewing children held in yuma, arizona.

that includes allegations of sexual assault against a 15-year-old. in addition to unsanitary conditions and over crowding nbc was told the allegation of sexual assault is under investigation but did not comment on the other claims. now to the gulf coast bracing for a possible tropical storm that could make landfall this week. louisiana is at risk and the state is stocking up on sand bags and implementing emergency pumps and the storm could become dangerous. lady gaga made her debut b also released her new spirit which is part of the album, the lion king, the gift. courtney, those are your headlines. >> that is so exciting i cannot wait to see this movie. i went on safari we watched the original

"lion king" in africa. >> this is perfect for you. >> can you see the love tonight? thank you so much, frances. when we come back, in the hot seat fed chair jay powell heads to capitol hill today. what every investor needs to watch. and later the friendship is over for netflix where ross, rachel, joey and the whole "friends" gang is heading when "worldwide exchange" returns. it tackles tough grease on a variety of surfaces. try dawn ultra.

the fed front and center as jay powell heads to capitol hill. sounding off the twinges comments on crypto. and lady gaga teaming up with amazon for a new beauty line will investors greet it with applause or will it turn into a bad romance? it's wednesday, july 10th. you're watching "worldwide exchange" on cnbc. ♪ ♪ welcome back to "worldwide exchange." i'm courtney ragan in for brian sullivan let's get you up to speed on what's happening in the markets. the fed chair going to capitol hill futures pointing to a mild open. the s&p 500 down by 5 and the nasdaq off by about 14 at this point. let's take a look at the bond market we had the big move last week

after the jobs report. right here the yield on the ten year sitting at 2.1. it was just about a week ago or less that it was at 1.9. we had a decent move there let's take a look at what happened overseas while perhaps you were sleeping. if you're joining us in the united states, we had a mixed picture in asia. they both traded lower the hang seng added on some gains. then in europe waiting to hear from fed chair powell. the italian ftse the only one up by .8 of a percent as i've suggested that big focus, it's on fed chairman jay powell heading to capitol hill he's going to be testifying before the house financial services committee that gets underway at 10:00 a.m. eastern time the first of two days of testimony. we'll have full coverage right here on cnbc all morning long.

let's bring in joe travasani he's with fx street. joe, it's so interesting to me that, gosh, less than a week ago we were thinking, hey, it could be a 25-basis point cut, could be 50, now it is decidedly 25. after one jobs report i know it was strong, but is that enough is it economically appropriate do you think in your opinion to just now suddenly 100% certainty say 25 basis point cut is what we're looking for? >> remember, the change in rates and in percentages for what you're going to get a rate cut is done by the markets, the fed futures. the market always goes a little bit more than you would expect they have a little more certainty than they really do. mr. powell has a tricky job this morning. i think he'll do a very good job. he's proven to be very, very good at this, i think. the economic case for reducing

rates is weak. you can make it. inflation is a little bit low. gdp appears to be slowing. jobs appear good but, again, it was good the reason people were concerned about it was because there were two weak months before it, february and may. >> right. >> you also had the adp report weaker for two months expect you have a bit of a weakening economy, nothing that in the past the fed would have weighed in immediately the fed case has been based on externalities, on stuff from over seas, on the once and future trade deal from china they used to worry about brexit but apparently they've given it up a little bit. brexit is still there. it hasn't gone away. the case is relatively weak economically as far as the united states goes politically it's probably a little stronger as far as the world goes there is, of course, the issue, this is where the fed has to be really careful about balance, between its own shall we say self image of independence

the fed is going to have to try that because that, of course, tends to the other direction of not cutting rates. when all of this is put together and mr. powell is doing his testimony, they'll end up reducing the rates it's built into all of the markets. the fed and central banks are not fond of volatility they're much more fond of certainty. >> right. >> the only way to get that is to deliver this rate cut, then you can pause after that. >> that's what's so interesting is the fed has moved into this era of transparency. because now they're so transparent, they sort of have to follow through with what they've messaged have they backed themselves into a corner we've said we have to do this, now you do >> if you're too transparent, you are stuck with equities and the market

they will act on their positions regardless of that so even if all the economists on wall street didn't think that a rate cut is appropriate economically, everybody would still position their portfolios and their positions based on if what they expect some days you wish for the old days of alan greenspan where there was less transparency and it was harder to figure out what they were going to do. >> do you think jay powell will have to be careful but yet assertive in positioning the fed as an independent body -- >> absolutely. >> -- because of the pressure president trump has put on him in. >> absolutely. i think what he's going to do is instead of stressing the fed's independence in a particular rate move as if threatening, say, not to cut rates, but in its institutional status and

history, he will approach it that way, rather than trying to use a signal >> interesting stuff i hope mr. powell had a good night's sleep. he's going to have to be careful with the word choices. >> he will he'll do well. he has been proven to be articulate extremely adroit at this type of maneuver. >> thank you very much for breaking this down for us. coming up, getting a dial tone you know, the one company that's sending all of those annoying robo calls straight to voicemail. let's hope. plus, music superstar lady gaga making a big bet on the billion dollar beauty industry we'll tell you who she's teaming up when "worldwide exchange" returns. e 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. we are morgan stanley. did you know that feeling sluggish or weighed down could be signs that your digestive system isn't working at its best? taking metamucil every day can help. metamucil supports your daily digestive health using a special plant-based fiber called psyllium. psyllium works by forming a gel in your digestive system to trap and remove the waste that weighs you down. metamucil's gelling action also helps to lower cholesterol and slows sugar absorption to promote healthy blood sugar levels. so, start feeling lighter and more energetic

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the firm is pointing to global trade despite the u.s. china trade war. shares of fed ex up half a percent. ups at least not yet moving. it's time for the top trending stories rahel solomon is here. get us up to date. >> goodnews for consumers. big win for consumers, in fact, for all of the robo calls, at&t is the first wireless service to automatically block the annoying calls without requiring customers to block in. all new at&t customers will be enrolled in the service and existing customers who want it can. i'm not an at&t customer but my

contract is up this might be enough. >> i was just going to say -- >> this might be enough. >> i feel like these things are so annoying. especially in the last week or so i have had so many more robo calls by my area code, by the first six digits you know that's a robo call but it annoys the heck out of you. >> so irritating. >> at&t is going to help >> maybe that will get some subscribers switching. >> maybe it will get friends when they said i'll be there for you, they weren't talking about netflix. they will lose it. they're moving to the hbo max. this is the set blow to netflix in the past month. remember a few weeks ago comcast announced that the office is moving to its streaming service. it's interesting to see these legacy companies, legacy media companies now become disrupters. not quite the order you expected it to have. >> so interesting. as a consumer obviously we love

the choice you have another option beyond just netflix how many streaming services are we going to subscribe to to get all the service i love. >> it ends up being the cost of cable. >> lower your bill i was thinking i have netflix, i don't have google. i want to watch some google. i add that what do i do spend so much money. >> thank you so much turning to sports. fresh off winning the world cup title, the u.s. women's national soccer team will be getting a hero's welcome in new york city. nbc's jay gray camping overnight along the parade route i hope you had plenty of coffee. good morning, jay. >> reporter: good morning, courtney not a coffee drinker, but you don't need it today. very exciting. i wasn't the only one out here early. we have seen people lined up along the parade route, lined up around city hall they're excited to be a part of what will be history this ticker take parade should be interesting comes down broadway all the way

to city hall where the team will receive the key to the city. it comes to the canyon of heroes perhaps never before has that name been more fitting than today. this is a team that fought not only for a trophy and world championship, for so much more during their run equality, equal pay, equal rights they won this world cup, their fourth, while they were actively suing their own federation, u.s. soccer, the next step in that gender discrimination lawsuit is going to arbitration today nobody cares about the leelt t legal t legalitise. >> the numbers were strong 25% of the folks watching television were watching the game i know my husband was jumping up and down and screaming in excitement during all of this. hopefully there will be a lot of spectators down there in new

york city. >> reporter: yeah, i think there will be thousands. people were watching the final game and watched some of the nba playoff games and some of the college football games so it's really a change in dynamic as far as soccer is concerned, especially women's soccer but i make the point, this is a team, yeah, the greatest women's soccer club in the world right now, but one of the greatest teams, period, across sports that we've seen. >> really excellent, jay i'm glad they're getting all the kudos they deserve you get to cover a fun story this is a good one enjoy your day. >> finally. >> thanks for being with us. >> exactly >> thank you so much elsewhere in sports, major league baseball hosting the annual all-star game in cleveland. the american league came out on top for the seventh straight year the eventual winning run came by

joey gall low. american league 4, national league 3. new this morning, lady gaga is making a big bet on cosmetics. the pop star announcing an exclusive partnership with amazon for a new line of makeup products it's called house laboratories it will launch in the u.s., germany and japan. let's bring in jay robbins i find this very interesting i had to pull up the piper jaff fri team survey. i just assumed that teens are probably the target audience or at least a key target audience for the new lady gaga line it did overtake sephora but 95% do like going to the stores.

amazon did finally crack the top ten for a beauty buying teen is this going to draw new people into amazon? >> we've waited for this launch for a long time. she's been working on this for a long time. as she said when she launched it, the last thing the world needs is another beauty line here we go yes, she will be successful with hers i don't know about you, but i'm a big fan of everything she's done she's never gotten anything wrong yet. with amazon behind her, i don't see how this could possibly not go well. i think it will have a big impact in the world because this will be the only beauty brand celebrity focused on amazon. only on amazon only in sephora. i don't see how you can't be successful with her behind it. i think it's a great breakthrough for amazon and it can't be bad for her either. >> speaking of amazon, you have prime day around the corner.

it's almost been an unofficial kickoff for back to school spending it seems to be a key category and a moment that begins the spending for back to school. deloitte is also out with the back-to-school survey. overall spending relatively flat going back to school spending will be 29% compared to last year >> well, it's also the launch of the new beauty product that's coming out prime day. that will be one of the big launches do i expect them to do well? yes. amazon is taking over, along with walmart and target, back to school electronics are an online business electronics will be the big growth area. i think it will be big for amazon i think that's going to be pretty good. people have worried about the back half versus last year

i'm not sure, i think the backpack is pretty close to normal the consumer is really strong. we're seeing great employment, rising wages, record employment. i just don't see how the back half is not going to be as strong even if we don't have the impetus we had last year from the tax cut. yeah, i think amazon is going to be the big winner. i also think the whole backpack is there. >> when i went ba being to school i'm trying to figure out what i think that means for retail it's a little bit different than looking at the holiday season. it's not a discretionary purchasing you have a list from the school or teacher that tells you what to buy so many are teaming up with the schools so you can punch in your zip code, area code, find your school, classroom, find that list with one click on target.com, walmart.com.

do those kind of technological sense? you make it so easy for parents. >> back to school is not a big deal it is for walmart and target and amazon does a big deal, but it's not a huge event for the rest of retailing. it's spread out over a long period compared to what it used to be. you're right, on the theme that you're talking about, we've got ven very technologically advanced it's great for the student and parents but it's not driving incremental shares the market share shift has gone into the discount guys for back to school. back to school is just not a big event. it's not a big event it's important from the point of view of giving us an indication of what the consumer spends.

important to be up your area but it's not a big point in the market world >> we'll see how it's going. jan kniffen, thank you for being with us here this morning. >> you, too. on deck, jay powell in the hot seat the fed chair testifying before the house this morning we'll break down things you need to watch. plus, ge dear tech, m inies. let's talk. you blaze trails... but you have the power to do so much more. let's not just develop apps, let's develop apps that help save lives. let's make open source software the standard. let's create new plastics that are highly recyclable. it's going to take input from everyone. so let's do it all, together. ♪ ♪ let's expect more from technology.

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today's executive recap, the

headlines you need in 60 seconds. here we go start the clock. an update on trade robert lightheizer and steven mnuchin spoke on the phone with the vice premiere liu and the vice minister. talks will continue as appropriate. levi is reporting a quarterly beat shares down today. sales growth will slow in the second half of the year on weakness in the wholesale business levi shares right now before the opening bell are down about 7%. facebook's head of its digital currency project libra is calling for more regulation david marcus says the company needs governments, central banks and regulators involved to launch libra they're set to testify later this month. sticking with facebook, mark zuckerberg and the winklevoss twins don't see eye to eye there's one thing they all are

bullish on cryptocurrencies seema mody sat down with them including facebook's libra project. >> despite that, they are bullish on the cryptocurrency. >> very positive for krip toempt a company, the stature of facebook talking about crypto demiss city phis the word. it makes people feel a lot more comfortable. our thought is every faang will have a crypto project in the next two years. >> did you feel like facebook was copying your idea again? >> libra is very different than gemini gemini is a marketplace. we'll identify libra that will be open if it's a protocol

>> i asked them what's the alternative? they are gaining momentum. they see regulators allowing new products like exchange rated funds to enter the market. they say asia is making a huge part >> interesting time that they think every bank stock will have -- >> right. >> why does netflix need one >> who knows if it's actually netflix but the idea that some of the big tech giants from silicon valley, not just facebook but other countries will introduce their project and it's an interesting forecast we'll have to see if that is what happens over the next two years. we know that silicon valley has been very bullish on blockchain especially when you look at the number of startups coming out in the next few years they're trying to specialize their own product within blockchain we'll see if something comes

like that, at least adds some legitimacy or makes every everyday consumers feel more comfortable? >> having facebook enter the cryptocurrency space with their own project, that it maybe gives a validation to the industry that is still at this time trying to gain credibility among not just investors but regula regulators as well they're waiting to see the consumers and the committee as to what type of push back they'll receive and if they can get libra to the market. >> libra, gemini, it seems like a zodiac. >> is that a coincidence >> this is still a small world and there is a very rich history among these three. >> we'll see seema back.

turning back to the markets. futures are lower ahead of fed chair jay pole's testimony this morning on capitol hill. dow jones futures now down about 56 points. so we've accelerated the losses a bit say in the last 20 minutes or so. joining us jim urio at tmj global services. jim, thank you for joining us. what are you expecting today out of chairman powell so many people say he's got to walk it back. >> i think it would be hard to walk it back the thing that's fascinating is we've had a significant change of plans since last friday's nfp numbers. the market is relatively complacent there is a significant risk that he makes an attempt to walk it

back i don't think the market is pricing it in ineffectively. that being said, i don't think he will. he will give us what we need i think he has to at this point in time. what happens beyond then is going to be interesting. remember, one of the key elements of the stock market rally in my mind was the fed's kind of flip to dovishness right around december. i think that he's still going to say he's got our back in some way. i think the stock market's okay. realistically, are you going to buy a german 10-year bund or the u.s. stock market? >> it's so interesting you make a good point about when the fed at least appeared to change course and things changed dramatically in the markets. it was a reaction to that. now it appears that the fed is paying a lot of attention to what's going on globally with the slowing global growth, with the trade tensions here in the u.s. the economy seems pretty strong. i mean, it's a 25 basis point cut appropriate at this point? we had the strong jobs report

but, my goodness, that was just one report expectations changed so dramatically after that. >> i don't think it's appropriate but i'm not chairman of the fed my job is to take advantage of what the situation is. if he tries to make it appropria appropriate. everybody's saying there's this recession coming mark my words, of course there's a recession coming there's always a recession coming i don't see where that's coming. i've been seeing the same thing for several months that jobs number was a couple notches shy of blockbuster is this appropriate? no i don't think that's relevant at all whether i think it's appropriate. i think it's coming and i think the fed is terrified to have any shots. two years ago in august when james bullard came out with a change for tightening. the only thing that changed was an 8% move lower.

>> they have the dual mandate. >> what is that again? you might have to explain that. >> exactly we haven't seen anything happen there. we are going to get another rating say this thursday is it important? >> no, it's always important it's very important. i think there's a huge over arching theme that's gone over the last 30 years that has to do with the internet that's changed the way a traditional inflation has shown itself the same thing for labor, everything is priced differently. the only time we'll see inflation is the bubble inflation. we've seen it twice in the last 20 years i think this whole theme it used to be that recessions happened every two to four years. in the last 40 years they've happened in nine to ten years. the feds come in and they try to keep everything perfect. in trying to keep it perfect

that's when we set it up for a big fall i don't think that's anywhere in the next couple of years. >> i hope you're right, jim. >> me, too. >> we hope you do well in your trading. that's it for "worldwide exchange" this morning "squawk box" begins right now. good morning jay powell in the hot seat again. it's a lot, right? we hear about this all the time. the federal reserve chairman heading to capitol hill today. we know so much from the fed every waking thought really good. we'll break down the key things you need ahead let the content wars begin first, "the office," now "friends" getting pulled off of netflix for a competing streaming service. we'll tell you what shows could be next and what it means for big media stocks. plus, primetime for lady gaga the pop superstar teaming up with the world's largest online retailer wednesday, july 10th, 2019, "squawk box" begins right now.

live from new york where business never sleeps, this is "squawk box. good morning, welcome to "squawk box" here on cnbc. we're live at the market at times square becky and andrew are off today guest host, jason trennert great to have you with us. >> thanks. >> big day here. we want to take a look at the u.s. equity futures ahead of the release of chair powell's testimony. that release happens at 8:30 a.m. eastern time before he actually testifies on the hill at 10 a.m. s&p 500 looking to open down by 10 dow jones indicated to open lower by 73 points the nasdaq looking to lose at 32 at the moment. overnight the china ppi had the lowest reading in three years.