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tv   Worldwide Exchange  CNBC  February 10, 2016 5:00am-6:01am EST

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good morning. breaking overnight, japanese stocks slammed again. >> the force is not strong enough. disney earnings beat the street, but shares are selling off this morning. we'll tell you why. >> and decision 2016. donald trump and bernie sanders win the new hampshire primaries, but there's still a long road to the white house. it's wednesday, february 10th, 2016. "worldwide exchange" begins right now. good morning. welcome to "worldwide exchange" here on cnbc. i'm sara eisen. >> and i'm wilfred frost. very interesting song choice. >> they get better and better.
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>> global stocks on a wild ride, as the music is. the dow traveling more than 1,000 points yesterday during a very choppy session, despite a relatively tame trading range of 256 points. as for the picture this morning, u.s. equity futures right now pointing to a positive open. quite a significant one to the tune of 130 points for the dow. the s&p called up by 18 points. the nasdaq by 53. >> we'll see if it holds. the other big story this morning, politics. decisive wins for donald trump and bernie sanders in the new hampshire primary. the main theme, voters backing the anti-establishment candidates. on the gop side, trump got 35% of the vote followed by a strong number two, john kasich, ted cruz, governor jeb bush, and then in fifth place, marco rubio. >> all of the sudden we started getting numbers in. everyone said, how come they like trump so much? i have so many friends up here. they are special, special
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people. so new hampshire, i want to thank you. we love you. we're going to be back a lot. you started it. remember, you started it. >> a little different there than his second place iowa speech. on the democratic side, sanders taking 60% of the vote to hillary clinton's 38%. >> together we have sent the message that will echo from wall street to washington, from maine to california. and that is that the government of our great country belongs to all of the people. and not just a handful of wealthy campaign contributors and their super pacs. >> a lot more discussion on
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decision 2016, including that bernie sanders warning for wall street in just a bit. but let's show you what's happening in global markets this morning. banks and commodities stocks leading the way lower in asia. the nikkei fell 2.3% in the overnight session. we've also got australia and the ftse straits in singapore lower with still many of the asian markets closed. we have more now from our colleague in singapore in just a moment. >> indeed. let's also have a quick look at europe, what's going on there today. we've got a nice bounce back. of course, sharp declines both monday and tuesday this week, led by some of those banks, credit suisse suffering heavily yesterday, deutsche bank. today, bouncing back. we're seeing the dax and the cac both over 2%. italy up strongly. that and its banking sector have been a big suffering market over the last couple days. italy's up 4.5%. >> this breaks the losing streak. europe was down seven days in a
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row, hit its lowest level on the broad index since october 2013 yesterday. we'll see if the strong gains can continue. >> after that news that deutsche bank was going to come back in and perhaps buy some of its own bonds to stem the flow, that boosted markets back here in the u.s. europe had already closed. that's now filtering through to trade today. just quickly on asia, singapore reopening today. i had thought given the size of declines we'd seen in the likes of japan in terms of what was open yesterday that when other markets opened around asia, we might see sharper falls. the fact they haven't is a little bit reassuring. of course, china still closed itself. that's a big one to watch. >> still an air of caution but perhaps not the magnitude. >> let's also have a look at commodity prices this morning. late yesterday, the api reported crude inventories rose less than expected in the most recent week. there we got oil prices for you up 2% for wti, 28.5. brent around 31. also a look at gold prices.
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>> of course, we're watching markets into janet yellen's testimony before the house financial services committee. let's show you what the markets are doing ahead of that testimony. the dollar had been weakening. now the euro is stepping back a bit. not huge moves ahead of janet yellen. keeping a close eye on that dollar-yen in the middle. it's below 115. what that tells you is it's a strong yen. there's still a wave of caution sweeping this market. that strong yen responsible for some of the losses we saw in japanese stocks. the japanese exporters very sensitive to that. global markets have responded sensitively to that as well, with a sharp slide yesterday coming back a bit in the late afternoon. as far as the treasury, what we've seen is lower yields and buying of treasuries, despite the fact that the fed has been raising interest rates and the economy has held up okay, we're
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still below 1.80 on the treasury yelled. will she say anything? will she hint about the march rate hike and whether they're going to be cautious given how much the world has changed since the last time they raised rates in december. >> i think she'll very much focus on something you said about 20 seconds okay, that the economy has been okay and the turmoil is not reflective of what she's seeing. >> there's a real bull/bear debate on the u.s. economy and on the global stock market. bulls say this is a great buying opportunity. the u.s. economy is not heading into a recession. companies are going to come back and start buying their shares. but the bears say we're looking at deflation, central banks are losing their policy effectiveness around the world, global growth is slowing. so far, the bears have been in control this year. >> right. and today, janet yellen gives her perspective. all eyes on her testimony later. let's get back to asia. sri joins us live from singapore. i hope you had a nice few days off with the lunar new year. how have markets traded so far
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today? >> yeah, pretty grim today, wilf. heightened risk aversion. it's really manifesting itself very starkly in japanese equities. we saw that classic rush into the safe harbors of the japanese yen and jgbs. jgb, ten-year yields turning negative for the first time ever. japanese yen surging. on tuesday we saw 15-month highs. so stronger yen pressuring exports, pressuring the market as well. then of course there's the banks. they led the decline. still a lot of fear out there about the outlook given that we have negative interest rates now in japan. that's compounding the stresses surrounding profitability at the japanese banks. they were loss leaders today. all in all, it was a very risk-averse day. as you said, all eyes now on janet yellen, her testimony to congress, what it means for the
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future rate hike trajectory, and what it means for the u.s. dollar as well. that's where we stand. back to you. >> the world central banker speaks today. sri, thank you very much for the update. as we mentioned, the fed is certainly in focus. let's tell you what you need to know. she'll be delivering part one of her semiannual testimony on the economy and monetary policy, otherwise known as the humphrey hawkins speech, before the house financial services committee. it starts at 10:00 a.m. eastern time. also on the agenda, the monthly federal budget statement from the treasury department is out at 2:00 p.m. and we're still in earnings mode. time warner reporting earnings before the opening bell. after the close, we'll hear from cisco systems, tesla, and twitter. janet yellen also goes before the hill tomorrow. often, the house is a lot more fun because the questions are way more politically charged. >> it is another example of how much she has to get in front of the media. >> steve liesman said it's been 55 days since she's last spoken. she's been quiet for a long time
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when the world has fallen apart. >> fair point. i stand corrected, mr. liesman. shares of disney tumbling after the media giant failed to ease cord cutting concerns. "star wars" helping the firm post earnings and revenue that topped estimates. but investors couldn't overlook a drop in profits. julia boorstin sat down with the ceo and he addressed investors' number one concern, a recent decline in espn subscribers. >> we're going to say on our call in a few minutes that we've seen an uptick in espn subs. we did reference in the august call that we had seen some suberosion. that, in fact, was the case. but the last few months in particular have been encouraging. >> despite the optimism, the dow component also saw programming costs rise at espn. >> some other stocks for you to be watching today. the "financial times" reporting deutsche bank is considering a multibillion euro bond buy back.
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shares of germany's biggest bang have been under pressure all year long. that's helped shares gain today. a strong comeback. solar city, check this out. shares getting slammed after the company said it installed fewer rooftop solar systems than expected for the second straight quarter. also warning growth could slow this year, and shares have come a long way from the highs. pounded down almost 30% on this. >> look at the sizes of all the moves in these stocks. 10% is the order of the day. it's extraordinary market conditions we're looking at. >> not just broadly, but the individual stock stories. seeing such big moves. >>. >> big reactions. >> let's have a look at more stocks we're watching today. akamai reporting better than expected fourth quarter revenues, helped by higher demand for its online security
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services. they announced a $1 billion stock buyback. shares jumping. oh, look, normal move. 16% after hours. just your average 16%. panera's fourth quarter profit fell due to higher costs. same-store sales rising more than 3% thanks to higher menu prices. for 2016, they expect profit growth of 2% to 5%, below analyst estimates, but sees a continued uptick in sales this year. shares up around a meager 3% in after hours. nuance communications reports a fourth quarter loss, although adjusted earnings did beat forecast. the company says sales were affected by currency fluctuations. shares of the maker of voice recognition software are down about 19% this year but rose 6% in after hours. >> now to the big news in politics. republican donald trump and democrat bernie sanders winning the new hampshire primaries. it is certainly a win for the outsiders and a loss for the
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establishment. nbc's tracie potts reports from manchester for us. >> new hampshire, i want to thank you. we love you. >> reporter: more than a third of new hampshire republicans said yes to donald trump's bold, not-so-politically correct brand of politics, which he says will work anywhere. >> we're going now to south carolina. we're going to win in south carolina. >> reporter: john kasich beat cruz, rubio, and bush in a four-way battle for second place. he credits a positive message. >> tonight the light overcame the darkness of negative campaigning. >> reporter: hillary clinton suffered a huge, though not unexpected, defeat. no comeback this time. she lost to bernie sanders by double digits but insists it's not over. >> we're going to fight for every vote in every state. >> reporter: sanders heads to harlem, new york, this morning to pick up key african-american endorsements that could help him
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compete against clinton in south carolina. >> they're throwing everything at me except the kitchen sink, and i have the feeling that kitchen sink is coming pretty soon as well. >> reporter: massive turnout, lines around the block. in one case, a mile long. led to outsider victories in both parties. tracie potts, nbc news. >> and our very own john harwood will have more with us from new hampshire in the next half hour, including who could bow out. will governor chris christie? he didn't get the win he wanted, hinted he'll look at his campaign. what does it mean for marco rubio, who came in fifth? and how bad is it for hillary clinton? >> and people saying bush is really pushing to get chris christie's support if he pulls out. >> even though christie went after him so hard saturday night in that debate. >> but they have a closer
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allegiance than some of them. cruz plus trump plus carson all totalled less than 50%. we're saying trump won, sanders won, but there's still a lot for the republican hopefuls to hold on to once they can whittle it down. i'd say that's the biggest issue from this. after iowa, they thought, okay, rubio is the clear establishment guy. after that fateful debate performance, it's back to a four-horse establishment race. >> and governor kasich got the second place he needs to go into nevada on the 20th and south carolina on the 27th. hillary clinton is pulling way ahead of bernie sanders in these states' primaries. we'll see what happens after the momentum that he got in new hampshire. >> john harwood will be telling us all the crucial information on that coming up. also, janet yellen heads to capitol hill this morning. we'll talk about what the markets want to hear from her. first, happy birthday to bob eiger, the disney ceo turning 64 today. check out how well the stock has done since he took the spot in
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watching tvs get sharper, oh remotes, you've had it tough. bigger, smugger. and you? rubbery buttons. enter the x1 voice remote. now when someone says... show me funny movies. watch discovery. record this. voila. remotes you are back. the x1 voice remote is here. x1 customers get your voice remote by visiting a very good morning to you. welcome back to "worldwide exchange." if you're just waking up, europe p predominantly in the green. just ireland and mother russia in the red this morning. late yesterday, deutsche bank announced it might step into the
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market. that has put a little pressure back in the banking stocks. we're up about 2% for continental europe. the u.k. up 1.25%. what does this mean for u.s. equity futures? green there as well. the dow expected to open 130 points. around about a percent or so for the other main indices. green on the screen today. >> nice wall walk with accents. now to today's trade of the day. investors expect janet yellen's testimony today to be dovish. our data team crunched the numbers to find out what typically happens on days when the fed chairman speaks. etfs that performed were the xly, the consumer discretionary
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play, the qqq, the nasdaq etf. for more, go to and check out cnbc pro. the common theme there is that she's usually pretty soothing when she speaks to the markets. we'll see if this time is any different. >> it's a question of is she soothing enough, given the volatility. i just think she's going to still focus on the economy rather than the markets. in that sense, you know, the comments in the minutes last time, they actually worked because if she was really acknowledging the turmoil and saying, yes, i have to take note of it, that perhaps will be worse still. she has to strike a tone to say, look, i'm not worried about this market turmoil, but i'm taking note of it. >> walk the line. noncommittal i think is the word. joining us now to discuss is the managing director of foreign exchange strategy at bk asset management.
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do you expect janet yellen to provide any certainty today? >> no, i don't think she's going to provide any certainty. that's the least of her job. she always tries to be as nebulous as possible. but it's an interesting dynamic. generally we expect her to be always dovish. however, given the fact the fed has now committed to a tightening cycle, it would be a really serious loss of face for her to basically admit that the current global capital conditions have scuttled all the plans for the rate hikes going forward, especially given the fact that the actual labor conditions and all of the economic indicators are not so terrible that the fed really needs to reconsider its course. so i think she's going to walk a very fine line today and perhaps maintain the illusion of the idea that the fed is on course of tightening. i don't think by any means they're going to untighten in march. but she needs to sort of maintain that illusion in order
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to maintain the fed's credibility. i think that actually probably will help the dollar, after being just destroyed for the last three or four days. it could get a bounce on that. you're already starting to see the euro weak an little bit in early european trade. >> that kind of sentiment from her will probably lead to dollar strengthening. is it even possible for her to be the opposite, to be dovish? the market is already discounting the likelihood of anymore rate hikes this year. even if she came out and said, look, we're probably not going to do four hikes anymore, the market will be like, we already think that anyway. it's only really possible for her to reinforce past hawkishness as opposed to being dovish. at a press conference, a the a hearing, she can't actually make a decision and cut rates or whatever that would be. >> right. i think the most likely course is she's going to essentially extend duration. she'll sort of hint at the idea that we're still very much on the course of tightening, it
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just may take longer than we anticipated. the economy still remains relatively strong, but the current turbulence is global market is giving us some cause for concern. although, we don't anticipate it to be a major structural weakness. that's the kind of message she's going to give to the market. ultimately, it should give the dollar a little bit of a boost as we go forward. on the reality basis, i don't think there's any chance they do anything in march. >> boris, great stuff. thanks for joining us this morning. expecting a little bit of dollar strength after today's yellen testimony. still to come, draft kings and espn ending their exclusive advertising deal. the details straight ahead. and our twitter question of the day. who's got the most momentum going into nevada on the 20th? is it ted cruz, donald trump, bernie sanders, or hillary clinton? vote on twitter. but as we head to break, here's today's forecast from the weather channel's jen carfagno.
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>> we made it to wednesday. old man winter seems to want to stay a while in the east. a lot more in the way of snow showers. rounds of snow squalls coming in. sort of nickel and diming us. it adds up after a while. some folks reporting 4 inches of flurries. it adds up. novelty snow all the way in the south into places like atlanta. in the west, our big ridge of high pressure continues to firmly be in place. we have dry conditions. l.a., what happened to our godzilla el nino? you can't base future expectations on past results. we've got an el nino, yes, but not all are the same. this one happens to be dry and hot in the west. record heat again possible today in l.a., san francisco, phoenix. we have the warmth in the southern plains as well. staying chilly in the east. that's the latest coast-to-coast forecast. i'm meteorologist jen carfagno. was engineered...
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welcome back and good morning. draft kings and espn are ending their exclusive advertising deal. yahoo! finance reports it's likely draft kings asked out of the partnership. the deal gave draft king the exclusive rights to run ads on espn in 2016. they are in a legal battle with new york attorney general. and the olympics aren't until august, but hope solo says she might skip the games due to fears over the zika virus.
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the u.s. women's national team goalie saying no athlete competing in rio should be, quote, faced with this dilemma. zika is suspected of causing a birth defect in pregnant women. other people can be susceptible as well. it's a fair point. i wonder if we'll hear more about this from athletes and spectators. >> brazil need to catch a break. this just doesn't help. >> their economy, the commodities, the politics. all right. when we come back, this morning's top stories, including another rough session in japan overnight. plus, a big win for driverless cars. details on a green light from safety regulators. >> we need to get driverless cars, quick, for sara. she's not a good driver. >> that's absolutely right. i think they'll be much safer. you're watching cnbc, first in business worldwide. so let's start talking about your long term goals.
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it's show time for janet yellen and for "worldwide exchange." the fed chair heads to capitol hill today amid global market turmoil. it's your money, your vote. big wins for donald trump and bernie sanders last night in the new hampshire primaries. and let it go. disney announces "frozen" is coming to broadway. it's wednesday, february 10th, 2016. you're watching world wor ining exchange" on cnbc. good morning. welcome back to "worldwide exchange" here on cnbc.
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i'm sara eisen. >> and i'm wilfred frost. let's get you up to speeds on the markets this morning. first up, u.s. futures. we're called to open higher. great to see some green on the screens. dow expected to open up by 155 points, s&p by 22, nasdaq by 65. yesterday the dow had a 1,000-point move. although, the spread no bigger than 250 points, and it ended roughly flat. let's have a look at europe. bouncing back strongly today after sharp falls monday and tuesday. deutsche bank is up 9% after falling 38% year to date from yesterday's close. bouncing back on news that it might step into the market and buy some of its bonds. that's helped banks across europe and the market as a whole, as you can see. up 2.5% for germany and france. quick look at asia, where we've had more markets open up today after the lunar new year holiday. singapore at the bottom there. only down 1.6%. red across the street, so it's not good, but given the falls we
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saw in the open markets monday and tuesday, you may have expected bigger negative opens for the likes of singapore today. japan still suffering, down 2.3%. china and other markets remain closed. >> on the back of that weaker japanese yen, really hurting stocks. among the stories front and center today, deutsche bank shares are rising sharply in europe right now, almost 10%. germany's biggest bank is considering a multibillion dollar euro bond buyback. that has helped lift very beaten down shares. disney beating the street on the top and bottom lines. share ares under pressure has investors focus on a drop in profit at the company's cable networks. here's ceo bob iger on "closing bell" yesterday. >> we had great performance across the board, really. yearly "star wars" drove studio performance. in fact, the studio, as mentioned earlier, earned a billion dollars in a quarter. that's just tremendous. we also had over 20% growth from parks and resorts and consumer
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products. media networks was down, but that was because of the timing of the college football playoffs. we had four businesses really that had good quarters. >> let's move to politics. decisive wins for donald trump and bernie sanders in the new hampshire primaries. john harwood joins us from washington. john, great to have you with us this morning. big news, of course, that these anti-establishment candidates have got such resounding victories. i suppose offset by the results we saw in iowa. >> reporter: only partly offset, though, because bernie sanders did quite well in iowa, tying hillary clinton. on the republican side, it wasn't donald trump there, it was ted cruz. but new hampshire voters last night fueled this populist revolt in both parties against the political economic establishments. bernie sanders beat hillary clinton big. donald trump beat the rest of the republican field big. when they came down to talk to their voters, they sounded the notes of that populist revolt. here's bernie sanders. >> the people of new hampshire
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have sent a profound message to the political establishment, to the economic establishment, and by the way, to the media establishment. >> reporter: now, from bernie sanders' perspective, it's about cracking down through taxes and regulation on millionaires, billionaires, and wall street. donald trump sounded a different note, but he nodded to bernie sanders' appeal in his own victory speech. >> congratulations to bernie, in all fairness. we have to congratulate him. we may not like it, but i heard parts of bernie's speech. he wants to give away our country, folks. he wants to give away -- we're not going to let it happen. >> reporter: now, what donald trump said was instead of going after people at the top, he talked about beating china, japan, mexico in world trade. he has gotten populist himself on some economic institutions, including pharmaceutical
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companies and oil companies, who he hit on the trail. we've got an unpredictable situation. i think most betters within the two parties would assume hillary clinton is still going to get the democratic nomination and donald trump won't get the republican nomination, but somebody's got to stop then and that hasn't happened so far. >> so john, what is the number two win by governor kasich mean for him besides the fact he's relevant again? and what does it do to everyone else competing on the gop side? >> reporter: well, more important than john kasich's number two, which does make him relevant again, as will jeb bush's finish for this race, but marco rubio's fade to fifth in the race was a severe blow. he had hoped to gradually build, become the establishment candidate, crowd out other campaigns and have the other governors in the race get out. let him consolidate support and take on those two populist outsiders. that is not going to happen. looks like the only person on
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track to drop out of this race who is relevant is chris christie, who said he's going to go back to new jersey to take a deep breath. but this race is going to go on for some time, sara. >> and just quickly, the gap between bernie sanders and hillary clinton, was that wider than expected in terms of what actually happened? everyone was expecting bernie to win, but how big of a margin, and how worried about it is hillary clinton's team? >> reporter: very worried. and it's bigger than expected. most people figured that race would close, but this was a blowout that resembled john mccain's blowout over george w. bush in 2000 in new hampshire. remember, in that campaign, they then went to south carolina, had a very rough face-off there. george w. bush came out on top there and ultimately got the nomination. that's the smart bet in the democratic race, but this is unpredictable. >> john, thanks so much for joining us this morning. fascinating results there. nevada is the next stop.
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>> investors haven't really been engaged at this point so far. although, it just adds to the uncertain picture for global markets this morning. political uncertainty is always cited by strategists as what's going on, even if they're not directly trading off these results. >> and so many of these candidates would have very big effects on the market, if they became president. >> anti-establishment confusion, yes. all right. stocks for you to watch today. starting in the energy space. anadarko petroleum cutting its dividend to preserve cash. that move will save the company about $450 million a year. shares were under pressure yesterday. already when the move was announced, they finished down 7%, up a little in the premarket. western union's fourth quarter profit falling 4%, and the company expects currency fluctuations will continue to hurt results this year. an fda advisory panel recommending the agency approve a cheaper version of johnson &
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johnson's arthritis drug. it's likely as safe and effective for arthritis as well as psoriasis and c hhron's disease. all these suppliers giving down beat forecasts for apple and the iphone. >> although, stocks still down for arm today 1%. the fed is in focus today as janet yellen heads to capitol hill. she's testify at 10:00 a.m. eastern. also on the agenda, the monthly federal budget statement from the treasury department. that's at 2:00 p.m. time warner reports earnings before the opening bell. after the close, tesla and twitter. >> cisco selling off over the past few months. the bell weather could give
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investors some much-needed optimism in quarterly results. landon dowdy joins us with more. >> good morning. the street is looking for revenue of 12.55 billion on earnings of 56 cents a share. beyond the numbers, that ez are the three things that analysts will be watching. the biggest focus is on general macro uncertainty, given cisco is a large company that sells to most verticals and geographiege. secondly, the currency impact. investors see revenue from china as a potential thorn. lastly, the cloud, it is a game changer as the market moves towards the cloud, which cuts into cisco's legacy routing business. >> landon, thank you. twitter earnings after the bell, big story. >> can they turn this stock around at all? all right. we have trending stories for you
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this morning. u.s. safety regulators have decided that computers that pilot google's self-driving cars could be considered drivers, actually, under federal law. google's car unit submitted a design that has, quote, no need for human driver. it's a big step forward in ultimately winning full approval for autonomous vehicles. yes, i cannot wait. >> the roads will be safer. >> google cited in its petition to ntsa, which is the regulatory body, that the bigger danger is actually letting humans step in and control them. >> when they haven't had a license and things like that. >> i think you still need a license. >> okay, fine. anyway, they still look ridiculous. i know they're early models, but they look like weird little bubbles. twitter announced a new trust and safety panel. it comprised more than 40 organizations from around the world. this after obama administration
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and congress have called on social media sites to do more in the online fight against terrorism. of course, that's a little bit of news for twitter today. as we've already said, earning out after the bell. >> burberry is suing jcpenney for infridnging on its iconic check pattern. i bet this happens all the time. i bet they sue all over the place for this. >> of course they do. >> because everyone copies off of it. >> anyway, we'll have to see what happens there. final trending story of the day. "frozen" is coming to broadway in spring 2018. oh, that song is wonderful. disney announced a musical adaptation of the hit film on tuesday. this will be the ninth musical the company has brought. i have not even seen this film. but i do like the song. >> you're not in the right
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demographic of age. little girls go crazy for its. it was a huge blockbuster for disney. and they've had success on broadway. >> my goddaughter adores this film. the song as well. sadly, your snapchat captures a little bit of me singing it. >> it's not just accent, folks. he also does disney songs. when we come back, today's must-read stories, including one that reveals london's secret weapon in the fight for financial dominance. wonder who are pipicked that on. and like "worldwide exchange" on facebook for behind the scenes clips, wilfred's accents, and much more. stay tuned. in new york state, we believe tomorrow starts today. all across the state the economy is growing, with creative new business incentives, the lowest taxes in decades, and university partnerships, attracting the talent and companies of tomorrow. like in utica, where a new kind of workforce is being trained. and in albany, the nanotechnology capital of the world.
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welcome back to "worldwide exchange." now to today's must-read stories, those that caught our attention. have to start with politics here. "usa today's" editorial board writing, love all these pundits staying up all. they say on hillary clinton, she has a masterful dema fuful comm foreign policy, making more sense than sanders' politically impractical plans, which have been derided, but not entirely unfairly as free college, free health care, and a pony. going on to say hillary clinton needs to start winning and winning big on the next few primaries. clearly some support behind clinton still. >> i still think that iowa and new hampshire have been more exciting on the republican side
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than the democratic side. sanders is always expected to do well in one of these first two. >> maybe not this well. >> maybe not this well in new hampshire particularly, but as we go to nevada and north carolina, people still expecting clinton to bounce back. if she fails there, then we have a more interesting story. the republican side is fascinating. >> it's up in the air. what "usa today" says about that, i'll just paraphrase, is the republicans need to really decide who they can put out there in a general election. they've got a real opportunity here to win, given hillary clinton's weakness. they knead to coneed to come up candidate that can seal the deal. >> absolutely. my pick today is a quirky one. bear in mind it comes from a brit abroad and someone that has to get up a at a ridiculous hour every day. it's titled "the advantages of dwelling in a decent time zone." it goes on to say that part of london's competitive advantage is derived from its time zone. i suppose it seems like a simple
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point. the fact it's sort of in the middle of the day for so many allows it to be one of the leading financial centers. you can catch some of asian trade, catch the early part of american trade. and it goes on to explore -- >> i would suggest "worldwide exchange" is at the center of time zones. 10:00 a.m. in london, 5:00 p.m. in hong kong. >> absolutely right. >> 5:00 a.m. in new york. everybody is up. >> this is a fun take at why london works. it also explores the distance airlines can fly and it's a hub for people transporting through from east to west. again t allows me to dwell on london. >> new york or london. not a new yorker yet. >> london is the greatest city in the world. but it's great to spend time in the second best. >> we're coming to the top of the hour. the "squawk box" crew is coming up. michelle, we were just wondering, to tie in the market uncertainty that we've seen in 2016 and what we've got in terms of results in new hampshire overnight, when investors start
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paying attention and start worrying about the prospect of bernie sanders becoming the nominee. >> yeah, it's tough. if bernie sanders gets his way, he'll put every banker in jail. then he can't tax them 100% to death to pay for all his programs. there's a real issue with his plan f you really start to think about it. i'm being facetious. i think we're starting to see it seep into the markets. regardless if it's the left or the right. sanders, as a socialist, who complains about wall street every minute that he can, certainly is a concern. also, populism on the right. we've heard ted cruz complain about wall street incessantly as well. i think that's certainly an issue. we're going to have all kinds of guests on to talk about what happened in new hampshire last night. we're going to preview the yellen testimony and talk about the tech wreck that's been going on and explore what's been happening with the financials in
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europe and how it's having a big spillover effect here in the united states. >> and a quick final question following our last discussion. you're super, super well traveled. what's your favorite foreign city around the world? >> my favorite foreign city around the world. i like to go wherever the news is hottest at the moment. >> fair enough. >> oh, look at that story. i want to be there. vacationing? i still love paris. >> and hottest you mean in terms of news, not temperature. >> right, exactly. >> very nice. >> she likes to go where the crisis is. >> exactly right. michelle, thanks very much. "squawk box" coming up in 11 minutes' time. >> up next here on the show, ken kamen joins us with key points to navigate the global market. we want to know from you, what music do you want to hear? we're killing it here. our produce we are a great taste for music. go to our twitter facebook page to get the link to our spotify
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collaborative play list. "worldwide exchange" will be right back.
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welcome back and good morning to you. check out this chart. the dow traveling more than 1,000 points, despite a relatively tame trading range of 256 points, ending basically flat as well. crazy moves throughout the day. joining us now to break down what's been happening in markets recently, ken kamen. great to have you with us. a very good morning to you. let's talk about these intraday moves. in fact, basically flat by the close yesterday. moves of half a percent, 1%. they're very rare now, both on indices and individual stocks. this huge swing, what are you taking from that? >> it's not your grandfather's market. it's not this market where you invest in something, ignore it, and go away. we're seeing the effect of
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dodd-frank. we don't have what we call on the street prop trade-in, where they proprietarily trade for the accounting. that used to be the shock absorbers in the market. now the shock absorbers are these program traders. i testified in congress when we to decimals from fractions, about how we'll see the narrowing of spreads take out the middleman's profit. the middleman acts as a shock absorb r on wall street. with that gone, it's the al go rhythmic trading, when the next change pops in for momentum that creates the liquidity in the market. we all need to be use tod to th volatility. >> what are going to be the trigger words for janet yellen that could spark big moves in markets today? >> clearly everyone is hoping she's going to say something that will take the foot off the gas of raising interest rates. whether she uses a congressional appearance to do that, i don't
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think that's likely. the other thing that we've seen is oil leads the market. the reason that's becoming so is that it's becoming the number one input into these algorithms. >> and we'll get inventory data today. >> that's true. i think investors that are trying to kind of plan for the future, think about their long term and retiermtd, they have to find a way to ignore this noise or come to accept that 100-point swings is the norm. >> the last ten days, i'd say, it hasn't, in fact, been oil. it's been european markets and european banks in particular. are you concerned about what's been going on there? we're seeing a 9% bounce up for deutsche bank, which has been in the eye of the storm. are we past the worst, you think? >> yeah, listen, the banks are in much better condition than they were years ago. all the pundits that are talking about the bank problems we had in the past have got it wrong. i think that there's a lot of headline angst coming from this, but risk management now is
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stronger than ever. i guess you could say certainly near in the united states, but around the world too. the dodd-frank has helped banks get much stronger balance sheets. or maybe not helped but forced stronger balance sheets. i don't think the banking system is really the problem. it might be a headache for traders, but i don't think the banks are where we have to worry. >> finally on this idea that earnings really matter and company-specific news matters. we were talking about a 16% move. stocks are getting punished for bad news and rewarded for good news in a way we have not seen in the past few years. mow do you deal with that? >> you deal with that by sticking with your homework. you have to know why you're buying something, understand the fundamentals of the company, stick with strong management teams and growth and let the market do what it's going to do. i submit it's the algorithms that have been taking over wall street. i think the trend line continues no matter which way the market is going, but the saw tooth is getting wider and wider. >> as the tide goes out, we
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discover who's swimming naked. i've been looking for that quote all morning long. it's warren buffett. it really describes this morning. >> it does indeed. quick point, after yellen, stronger dollar or weaker dollar? >> stronger dollar. >> ken, thanks very much for joining us this morning. >> that just about does it for us here. before we go two, things we're watching today. for you? >> deutsche bank, i think. watching what that's done, it's been an important bank in europe leading performance today, rallying around 9%. kb >> and ahead of janet yellen, i'll be watching the u.s. dollar as always. had is where the gut reaction really shows up in terms of what the markets are making of janet yellen. will she keep march on or off the table? how strong will her language be? >> right. the result from our twitter
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question. who's got the most momentum into nevada? very much the anti-establishment names. that's all we've got time for. have a lovely morning.
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good morning. global market alert. japanese stocks are getting slammed again, falling more than 2% overnight. also, the force was strong with disney. company posting a strong earnings beat on the strength of the new "star wars" movie, but the stock selling off this morning. we'll tell you why straight ahead. and new hampshire voters sending a message to the establishment candidates, giving donald trump and bernie sanders resounding victories in the nation's primary. if only that was america. up next, nevada and south carolina. it's wednesday, february 10th. "squawk box" begins now.
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live from new york, where business never sleeps, this is "squawk box." good morning and welcome to "squawk box" on cnbc. we're first in business worldwide. i'm michelle caruso cabrera along with andrew ross sorkin. joe and becky are off today. we'll start with crude prices. we saw a $27 handle on wti yesterday. 28.55 at this hour, higher by 61 cents. that's a gain of more than 2%. brent is back above 30 with a gain of 67 cents this morning. also a gain of more than 2%. crude is getting a boost by comments from iran's oil minister, saying tehran is ready to negotiate with saudi arabia over the current conditions. if that were true, i think you'd see an even sharper increase because iran has been the problem in terms of getting a deal done theoretically out of opec. among the other big market movers this morning, another selloff in asia


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