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tv   Worldwide Exchange  CNBC  May 31, 2017 5:00am-6:01am EDT

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good morning. sterling slides as polls show theresa may could lose her majority in parliament. today's market test and earnings front and center as always. and trump dishes out his digits. why the president is reportedly telling world leaders to call him on his cell phone directly. it's wednesday, may 31, 2017, "worldwide exchange" begins now. ♪ good morning. welcome to "worldwide exchange" on cnbc.
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shout out to president trump with this, i guess. >> i'm wilfred frost, good morning to you from me as well. final trading day of may. did break that seven-day winning streak yesterday for stocks. still stocks are up for the month of may. the nasdaq is the clear winner up almost 2.5%. the s&p is up a little more than a percent. and the dow is up less than a percent. this is all monthly figures i'm giving you on this final trading session of the month. dow futures down 6 points in early action. s s&p and nasdaq up. >> tech is up 4.5% for the month as a whole. >> tech as a defensive, tech, consumer staples and utilities are best groups. 7 out of 11 sectors are higher for the month. br broad-based rally. >> the british pound, sterling taking a hit after the release
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of the late ef yst poll which s theresa may could lose the majority after next week's election. sterling down to 1.2785. yougov is not calling this a pot but a projection. they are staking a lot on the data, saying this is a possibility but we're still a week out. that's why we have seen the reaction in the pound. that said, if you look at the ft poll of polls, the conservatives have a 9-point lead. you yougov is saying this is a new way of polling. if you look across all the polls -- >> what would it mean if she loses her majority in parliament? why is that spooky for markets? >> we would not have a clear government at all. at the moment she has an
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outright majority of 20 seats. if she got the most seats but not above the halfway point, governing at all is difficult. >> a total miscalculation on her part. so we have to pay attention to this election. we weren't paying attention. >> i was always paying overattention. yes, indeed. the pound is off a half percent. european equities, in terms of the best performers for the month, the ftse 100 up over 4% because of the pound slide in the second half of the month. it's up again this morning in light of that softer british pond. germany and france up about a percent for the month. not much movement in general as we look here at the performance at the end of the month. getting eurozone data. jobless rate, 9.3%. it was 9.4 n% in march. expected to come in at 9.4. the left rate since march 2009.
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we had cpi for the eurozone, that's come in at 1.4%. april was 1.9. the forecast is 1.5. inflation a bit soft. jobless rate a little bit better. overall markets in europe, as you can see, mixed this morning. no major movement. in asia, china's official pmi coming in at 51.2. slightly better than expected. mixed picture in asia. but again pretty much flat. shanghai gaining a bit. japan and hong kong down a little. as for the broader markets, ten-year treasury note yield little changed to lower has been the story. still sitting below 2.30 on the ten-year. 2.22 is where we are. as for the price of oil, weaker has been the trend following that opec plus russia decision to extend russia cuts. maybe the u.s. has more power over the price of oil and supply of oil. wti down 1%. 49.14. brent down more than 1%.
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51.25. energy stocks were big losers during the month of may. as for the u.s. dollar. dollar was also a loser, almost down 2% that has helped a lot of the multinational earnings. better quality, better tone to earnings. let's see if it lasts. the dollar is firmer against the euro barely, 1.1175. unchanged against the yen, 1.1082. firmer against the british pound. gold prices, gold was soft during the month, down about a half percent. worst month for gold since december. had been marching higher all year long, giving a little back this month. it's high their morning barely. bitcoin prices, let's throw that in. because that was also a big gainer for the month of may. it is all the chatter right now. check out the price of bitcoin. >> extraordinary. >> continues to soar. it has gotten as high as $2,700. still, the crashes are painful. it is mostly higher for the month -- for the year, i don't
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know. any chart you look at. >> if you can hold on and ignore the short-term pullbacks, you're looking good. breaking news this morning to tell you about. a suicide car bomb in afghanistan's capital killed at least 80 people and injured more than 300. the massive explosion rocked a highly secure area in kabul where foreign embassies and government offices are located. it happened in the peak of morning traffic. windows were shattered in shops and restaurants up to a half mile from the site of the blast. no group has claimed responsibility, both the taliban and isis have staged large-scale attacks in ka pull bul in the p wilbur ross says he is open to resuming talks on a mega trade deal with europe. this after trump issued a series of angry tweets towards europe on trade. we talked before about the
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possibility of donald trump sort of cultivating the art of the deal type rhetoric with people, and whether he talks tough for a couple of days in tern with tpe with them with various tweets and then lines himself up for an yuf se o offset. doesn't feel like that here. vietnam's prime minister set to meet with president trump at the white house today. yesterday the vietnamese leader announced he would sign deals for u.s. goods and zfr services worth up to 15 billion to $17 billion mainly for technology products and services. ge power ceo says general electric will sign deals worth about $6 billion with vietnam. a bag of goodies coming from the vietnamese leader, prime minister. guess what, vietnam has a trade deficit with the u.s. this is a familiar pattern where
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we know this president is focused on trade deficits, whether correct or not as negative. he wants to close them. potentially this is a way of appeasing that a bit. >> indeed. the u.s. military conducted a successful missile defense test yesterday launching a ground-based rocket from an air force base in california. the test which cost 2$244 million, involved a simulated attack by an intercontinental ballistic missile. the exercise is in response to recent launches by north korea. it does not confirm the u.s. is able to protect itself against a potential strike by north korea. president trump has reportedly been handing out his cell phone number to world leaders and urging them to call him directly. the associated press says trump has given his number to at least three leaders, canadian prime minister justin trudeau, the mexican president, enrique pin
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eta and french president emanuel macron. it is raising concerns about security because a cell phone is more vulnerable to eavesdropping. the three leaders mentioned could be a signal that things are a lot more friendly than they look with our key allies and trading partners like canada and mexico. >> like that moment when you give your number out to a girl knowing she won't call you back. macron won't call him, neither will trudeau. >> for all the criticism on hillary clinton using a server not secure, this is hypocrisy to the highest level. if true. >> and it could make the u.s. vulnerable if people are listening. >> do you think they're snapchating each other? >> probably not. >> probably tweeting. >> we have a presidential tweet to get to at this hour. some stocks to watch, mallon
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kroot is exploring a sale of its generic business. and toshiba says it could be some time before the audited results of 016 are completed. they are hold ra share meeting on june 28th. united airlines is underfire. the faa is threatening to fine the airlines almost $500,000 for flying a plane not in airworthy condition. the faa claims that the boeing dreamliner was flown 23 times do be domestically before performing the services. deutsche bank was fined for anti-money laundering lapses. the u.s. fed is fining them $41 million for failing to ensure systems would detect money laundering regulations.
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shares of apollo commercial real estate are taking a hit. the investment trust offering common stock to meet target assets. perrigo reporting better than expected earnings. the guidance brackets was in line with current wall street consensus. among the top corporate stories, a shake up at uber. landon dowd by hy has been trac this saga. >> the former google engineer at center of google's lawsuit over alphabet is out. levandowski was fired yesterday. uber has been pressing leva flshgs dlevandow levandowski was urged to fully cooperate in helping the court
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get facts and ultimately helping prove the case. he started his own self drive startup, auto, which uber then acquired and made liewandowski n engineer for them. it is unclear what the firing means for the lawsuit. cnbc reached out to weymo for their take. uber has now lost another high profile engineer and a source close to the matter tells cnbc that the board subcommittee will receive the report on workplace issues and sexual harassment that eric holder has been overseeing later today. back over to you. >> thank you very much. to the agenda, manufacturing and housing in focus.
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chicago pmi and pending home sales at 10:00 p.m. the beige book at 2:00 p.m. dallas fed president, rob kaplan and san francisco fed president john williams reporting today. before the open nks miwe hear f michael kors. new polls show prime minister theresa may could lose her party's majority in parliament. the pound is slipping on the news. we'll discuss market implications next. you're watching "worldwide exchange" on cnbc.
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welcome back. the pound falling today hitting a six-week low against the dollar after a survey by yougov shows theresa may's party could fall short of securing a majority in the uk election. financial times did not crunching on brexit and found out that the uk will have to renegotiate 759 treaties after the uk leaves the eu. joining us is paul mclane. you have been doing a deep dive on this topic. first question before we get to the details of your deep dive does it make a big difference how brexit negotiations will go? how big the majority or not that the next governor of the uk has? >> i think it's important for a
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number of reasons. there's been a lot of talk in london, particularly this week, about the importance of getting a deal with the eu post-brexit. theresa may has been saying how no deal is better then a bad deal. what this shows is for which ever government that comes in, be it a tory majority or a coalition as the polls are suggesting today, they have a lot of work on the plate. this is about far more than one deal with the eu. we counted 759 deals that the eu currently has with third countries around the world. the uk currently benefits from them. but after brexit, it will lose thoer dea those deals and have to renegotiate them and it will be a bit of a bureaucratic nightmare. >> do you think it's plausible in that two-year time frame a deal can be reached? it's a tough question. i would say looking at the amount of work that has to be
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done, not just with the eu but also with these deals around the world, from a personal point of view, i would say there's a two-year time span that is a little optimistic. a lot of these deals will be able to be rushed through. small deals that perhaps the uk is not worried about. they have fishing rights that they probably won't lose much sleep on on those. but overall some important deal also take a lot of work. two years is probably optimistic. >> i wonder how much lobbying firms, for every deal, for every treaty that you dies found that needs to be pushed through and negotiated, how many lobbying firms on each side are going to influence the debate and how many negotiators will be able to deal with these -- what did you say, less than 800? >> yeah, 759 in total. it's a good point. it is a bureaucratic hell hole, but a lot of work.
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it will create a lot of work for lobbyists, and also various trade officials in the uk. in terms of negotiators, that's another interesting point. most of the think tanks we spoke to suggested the uk will need around 700 negotiators in total. bearing in mind they were starting almost from scratch because of the trade deals we used to sign with the eu. they have about 300. we reckon there's a shortfall of about 400 of where they need to be to conduct the deals within the time frame to get them rubber stamped and through. so it is really quite a lot of work for that team to get through. >> paul, great stuff. thanks for joining us. >> daunting work ahead. still ahead on this show, the top stories out of washington plus after months of negotiation, the city of lights may be the home of the 2024 summer olympics. we'll have the details. first as we head to break,
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the national weather forecast from nbc's bill karins. >> good wednesday morning to you. today's big headline once again, more rain in the northeast. this time we'll have a severe weather threat with it. not widespread, but if you're on the northern portions of the hudson valley, albany new york to new hampshire, vermont, the mass typike down to hartford, se small storms, damaging winds. maybe an isolated tornado threat. a lot of gloomy weather early. low visibilitvisibilities. 6:00 p.m. the clouds break up. so there will be sunshine. but that's when we will pop up some of those severe storms. by the time we get to thursday this will blow through. finally a dry day in the northeast on thursday. more "worldwide exchange" when we come back.
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who's the new guy? they call him the whisperer. the whisperer? why do they call him the whisperer? he talks to planes. he talks to planes. watch this. hey watson, what's avionics telling you? maintenance records and performance data suggest replacing capacitor c4. not bad. what's with the coffee maker? sorry. we are not on speaking terms.
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welcome back. let's look at the futures at this hour. mixed. essentially flat. the dow and s&p fractionally in the red. the nasdaq up. yesterday the dow was down a quarter percent. s&p and nasdaq down more. looking at strong gains for the month as a whole led higher by tech. >> on a day that amazon broke 1,000, nasdaq 100 reached a high. former national security adviser michael flynn will reportedly turn over some
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documents to the senate intelligence committee. that is among the top headlines. tracie potts joins us from washington now with the latest on that and what else we can expect today. good morning. >> reporter: we can expect to see congressional investigators going after some of those records that they wanted to see. the word is that flynn will turn over some of his personal documents, some documents subpoenaed from two of his companies from the senate intelligence committee. initially he took the fifth, now taking another look at this, he and his attorneys say there are some documents he's willing to turn over to the investigating committees. also michael cohen, president trump's long-time personal attorney and business attorney may testify if asked. koe whcohen says i have nothing hide. i will make myself available and i'm more than happy and willing to testify, but they have to be
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specific. initially he said no because he said the request was too broad. this just goes to show these investigators seem to be getting closer and closer to the president's inner circle. speaking of inner circle, the first briefing since the president came back from overseas at the white house yesterday. and sean spicer taking a lot of questions about the president's adviser and son-in-law jared kushner and whether he tried to set up back channel communications with the russians as reported. the white house is not confirming or denying that but explaining saying there is nothing wrong in the role he was in before trump came into office, there was nothing wrong with him trying to do that if, in fact, it happened. they are also attacking the anonymous sources behind the story. the russian investigation here on capitol hill heating up with flynn and cohen and another campaign aide being asked for documents that it looks like
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they will turn over. the white house yet again on defense this time about jared kushner. >> important question, can you define the word covfefe? what does that mean? >> nobody knows what it means. it's kind of ironic that the national spelling bee starts here in the dc area today. you know, i wonder if the president might swing by there. the president tweeted that overnight. >> five hours ago. it's still up. >> right. >> why didn't he delete it. >> they haven't taken it down yet. what he was trying to say, we don't know. >> i think it's coverage. despite the constant negative press covfefe. it's kind of a half sentence. >> it's like he fell asleep while he was tweeting. that's what came out. >> as you can imagine, there are 123,000 retweets, 157,000 likes. and the thing has gone viral. >> he often has these delays before he finishes a tweet.
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i look forward to him waking up and finishing. maybe he will recover it. maybe this word is part of something and we're not quite sure yet. >> still ahead, the top corporate stories, plus did president trump just invent the word of 2017? we went there kind of, but we'll talk more about this viral phrase this morning.
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. good morning.
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may-day may-day big moves in the currency market after a new poll in the uk. >> we're setting you up for the final trading day of the month. and the word of the day is covfefe. is that how we are pronouncing it? >> i think it's up for interpretation. >> the big tweet that has everyone talking this morning. we'll break down the details of that one for you. it's wednesday, may 31, 2017. you're watching "worldwide exchange" on cnbc. >> actually i thought it was covfefe. >> i think i did as well, but it is impossible to say. until he wakes up and finishes the tweet. >> good morning. welcome back to "worldwide exchange." i'm sara eisen. >> i'm wilfred frost. good morning to you from me as well. particularly to the present, if you're waking up, mr. president, please clarify the tweet. >> already more than 122,000 retweets. let's check in on the global
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markets. on this final trading day of the month of may, another positive one for u.s. stocks, peshs lesp the nasdaq. dow futures are down abo about points. s&p futures barely positive. nasdaq futures up 2 1/2 points. as for overnight action in asia, shanghai getting a lift after china manufacturing pmi came in better than feared. there was a lot of concern about china's economy, global pmis starting to peak. we did get a number that it was above 51 signaling an expansion in manufacturering theing there better than estimates for may. just around the same level as april. >> 51.2. >> shanghai comp closing up a quarter of a percent. early action in europe right now, let's show you what the trade is now. the german dax is barely positive to little changed. france goes the other way. ftse 100 keying off that
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higher -- or that weaker british pound. it is higher by a third of a percent. spain and italy going in opposite directions. that brings us to the pound under pressure after a new poll last night showed that theresa may could lose her parliamentary majority in next week's uk election. the latest poll finds the koch ser conservative party is at risk of giving up 20 seats it holds in government. can you interpret this? how important is this? how big of a deal could it be? >> it's significant because y yougov has gaven way more data, and they say this new model would have predicted the brexit vote, they said. they said each day they will update the model from here. eight days to go. at the moment this is the most negative of the polls we've seen
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for theresa may. clearly the whole point of calling the snap election was to increase the majority. never did people gather she could lose the majority altogether. this creates the possibility of there being no clear government, the need for negotiations. >> what happens the brexit talks? >> exactly. the whole point was billing erma jority strength ibigger majority has a stronger hand in negotiation talks. that said, i would point out the ft poll of polls is still 44-35, nine-point lead still for the conservatives. that's why if you look at betting markets and other expectations, they're confident that the tory party, conservative also get the win. >> we should also note a half percent move lower in the pound is nothing.
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>> of course, but the second half of probably not quite now -- probably about flat. second half of march, definitely weakness. that's why the ftse 100 for may, up about 4.5%. let's look at broader markets at this hour. oil prices are coming up for you a bit soft. down 1.6% for wti. so a bit of softness as we said. 48.94, wti. for the month as a whole, surprisingly, given the fact that energy is the worst performing sector on the s&p, oil has been liar for the month. not quite with today's declines, but such a high level of volatility is why the sector underperformed. ten-year treasury node down tte 2.2, having started at 2.25. dollar board, already the pound moving south against the dollar. for the most part looking at a
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flat dollar against the yen and euro. gold prices for you, flat for the most part today. yesterday down about half a percent. down about half a percent for the month as well. moving on, breaking news this morning. a suicide car bomb in afghanistan's capital killed at least 80 pem and inju 0 people e than 300. the explosion rocked a secure location in kabul. it happened at the peak of morning rush hour traffic. windows were shattered in shops, restaurants and other buildings for up to a half mile from the site of the blast. no group claimed responsibility but both the taliban and isis have staged large-scale attacks in kabul in the last few years. switching to corporate news, uber firing a top engineer who was the head of the company's self-driving car unit. he's at the center of a legal dispute between uner and weymo.
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ysh y. steve ball mer is wrmer off advice for twitter's chief. >> the business overtime will either get sorted through or an appropriate asset for somebody to buy. it's hard to deny it has an important role. the question is, is there somebody who can better monetize twitter than twitter as an independent company? >> we'll have complete coverage of the code conference all day on cnbc. some stocks to watch today. once we pull them up. we don't have them -- do we have the stocks to watch? we don't. let's look at futures. as we said, flat today. it was the end of a seven-day winning streak yesterday in terms of declines, small declines relative to the gains
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we've had recently. >> now we have stocks to watch today. starting with mallinckrodt exploring a sale of its generic drug unit it could fetch $2 billion. toshiba says it could still be some time before the auditing of its results for the 2016 financial year is completed. the embattled conglomerate will hold its shareholder meeting on june 28th. united airlines is under fire again. the faa threatening to fine the airliner almost $500,000 for flying a plane it says was not in airworthy condition. the faa claims united flew a boeing dreamliner 23 teams on international routes before performing required inspections. that's a scary one. >> much more a worry. the international olympic committee is moving towards a deal to give paris the summer
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games in 2024 and los angeles four years later. the "wall street journal" says this comes following months of negotiations after the two cities emerged as the finalists for the 2024 olympics. finalizing the deal is on los angeles and the u.s. olympic committee finding whether the games are financially viable to the city. two cities and two olympics i think going to visit would be awesome. >> yes. >> great places. unlike, for example, the world cup in qatar, which people were critical of. >> hot? >> unbearably hot. apple's highly anticipated carpool karaoke finally has a release date. the original series will debut august 8th on apple music. new episodes will be released on tuesdays and only available to apple music subscribers. we're interested in this one.
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>> there's no james corden -- he will make a few surprise guest appearances. but we'll see how much it relied on the format that he came up with or himself. >> i think they have some big stars. >> they have big stars, but he kept it going. not only was he amusing enough and he had the original idea behind it, but he's musical himself. so it all worked. we'll see. >> people like him. >> people like him. >> they like to be in the front seat with him. >> him and his production company apparently sold this to apple and cbs as well, they'll make money out of it but now they will be competing for all the stars in the world that have some desire to go on to this show. presumably he won't give up doing it on his cbs show. we'll see if it works. on to the next trending story, president trump's late night tweets making headlines again. a few minutes after midnight the president tweeted despite the
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constant negative press, covfefe. since then the message has been retweeted more than 123,000 times. liked more than 150,000 times, making it trump's most popular tweet in months. covfefe is now the subject of thousands of memes with twitter users and celebrities tweeting about the strange message. >> it's not his first typo, but usually he corrects it. >> wakes up, checks twitter, looks for regrets, checking twitter, goes back to bed. not one of the best retweets. t people suggesting the president fell asleep mid tweet. there's often a lull between the first part of a tweet and the second, not usually this long and not usually when the first part is so utterly confusing. presidential tweets are already a new thing that the whole world is getting used to. when it comes from the president
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of the united states, it will be news worthy. pay attention. >> to make a serious point about this, we knows there a lot of change going on within his administration, communications director leaving, part of the reason probably because as a communications director you don't have enough control over the message coming out because of this direct from source type of thing. particularly when it's this confusing message. >> absolutely. coming up, the must reads and they're all about president trump. and as we head out, a check on the futures at this hour. pretty much flat. we're back in a couple minutes.
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good morning. welcome back to "worldwide exchange." futures pretty much flat. coming off a day where we did break a seven-day winning streak. the dow down 7 points. the worst performing sector yesterday was energy. as we look at the month of may in total, energy the worst performing sector. down about 4%. the best sector has been tech over the course of the last month. it's been a defensive growth sector and has outperformed. the nasdaq the best performer of these three for the month of may. so pretty much flat at this hour. let's look at currency boards. for the most part the dollar is flat today but it is not against the pound. the pound falling about half a percent.
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pared some of those losses. down about 0.6 alt tht this poi. this on the back of a new poll suggesting theresa may's leader may slip further and we could have a hung parliament. that's why the pound soft again today. 1.2800. >> time for our must reads. the op-eds today. mine is titled donald trump and the surrendering of u.s. leadership. ever since his first foreign trip everybody is rethinking how president trump is repositioning the u.s. on the global stage. clearly martin wolf is weighing in. he's been critical of president trump from the beginning. he says consider the west and above all the u.s. in the world. the rise of china has reduced its economic and political ecen
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have savaged the leader's credibility. the choice of mr. trump, a man so signally lacking in the virtues, abilities and knowledge to be expected of a president has further damaged the attractions of the democratic system. so lack of cohesion with the members of the g7, nato, going after trump for that. trying to think what it means for the new global order and whether china, for instance, can come in, step in, fulfill that leadership position. we know merkel and modi had a press conference. she hosted him in berlin yesterday. don't think that was an accident. >> i would think as well -- as you say, martin wolf has been anti-trump from the word go. the ft also had quite a few op-eds criticizing merkel. >> he noted that, whether she
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should have said it or not. >> yes, that's their default position. my pick is in the "wall street journal." america first doesn't mean america alone. penned by general h.r. mcmaster. this historic trip represented a strategic shift for the united states. america first signals the restoration of american leadership and the government's role overseas to use the diplomatic, economic and go military resources of the u.s. to enhance american security, promote american pos perity and extend american influence around the world. this comes two, three days after they come home. president trump caused such friction on the european leg of his trip. one wonders whether this is an attempt to appease after the damage is done. >> they're trying to counter some of the coverage like the
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wolf op-ed i just read. >> exactly. it does feel a bit contrived. >> you also wonder if it's the way president trump feels or if there's discord about this, the big idea within the administration. if they were sent out on advisedeadvised e advisers suggesting it. >> the media always patients the nationalists inside the trump administration versus the globalists. they point to cohn as a global hift. y a globalist. >> though it wasn't a total globalist article. >> america first. >> not as pro globalization as you might have imagined gary cohn a year ago. we have breaking news. the covfefe tweet has been removed chld. >> oh, no i thought we would have an explanation. >> there is the president's
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twitter account. it is gone. >> that's so disappointing. when you told me that, i thought we would have the follow up. >> maybe later this morning. approaching the top of the hour, steve is getting ready for "squawk box." becky will tell us what's going on. >> mystery solved, mystery removed. >> he's hoping people asleep won't notice it. alas 124,000 already circulated it. >> my guess is it's probably something he did not realize went out. we have a lot of things happening on the show today. we'll talk about some big issues we've been talking about again and again. one of them is infrastructure, that's what we've been watching washington so closely for. this is the one area where maybe, maybe, maybe see a bit of bipartisan support. we have richard lefrak joining us for an hour. he is on the president's council advising him about potential
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things they can do with truc infrastructure. richard has been open with us about what they have been trying to do, like cut down on the permitting procedure. we will dig through the things he thinks we can see in terms of progress. also talking about cybersecurity this morning. the vice president -- ibm's vice president of securities is joining us this morning. he is already here in the green room, talking about the new partnership between ibm and cisco. he will talk about what business can be doing and what they should be doing. and did you see yesterday in the "wall street journal," the story about drug pricing. what's happening with ever increasing costs for drug prices, especially seniors who are caught in the medicare d block that -- they're out of pocket costs keep going up and up. this morning we have two guests
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joining us. first, steve miller with express scripps. and robert ward, ceo of radius health. they'll talk to us about the role the pharmacy benefit managers can play, should be playing and what drug companies themselves are trying to do to control costs, offer more options to consumers. radius health just had a new fda approval of a drug called timlos, a drug to treat osteoporosis. they had a different way of launching it. i hear the music playing. >> will be complete covfefe on "squawk box" coming up. >> yes. >> full covfefe on its way. looking forward to it. >> coming up, we're setting you up for the final trading day of may with jeff kleintop of charles schwab. night. she said the future freaks her out. how come no one likes me, jim? intel does!
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welcome back to "worldwide
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exchange." futures are a bit unchinganged. still set to be a positive month for stocks, especially the nasdaq gaining 2% for the month. its seventh month in a row of gains. with us now is jeff kleintop from charles schwab. good morning. >> good morning. >> going into june, do you stick with winners like technology and the nasdaq which continues to sore above t soar above the rest of the market? >> i think you do. technology is a sector we've been positive on for a while it correlates mostly with the u.s. the u.s. from a fwloebl pgloba r perspecti perspective. we've seen from april and may, stocks in europe and japan outperform the u.s. a bit. now we're shifted back to a u.s. outperformance regime supported by the tech sector. >> in terms of what we can expect moving forward from the dollar, having seep the dollar
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settle back, the last couple weeks has not moved meaningfully in either direction. what do you expect for the rest of the year. >> depends on what the fed does, what the messages is. maybe who will be running the fed a year from now. that will be important. i think in the near-term, watch china's mieconomic growth rate. good data this morning but china has been slowing in contrast to most of the other worlds developed economies. if china slowing further, that's a further drag on the yen and euro than it is in the u.s. that could mean more dollar strength. >> just tallying up the may figures, so technology clearly is the out-performer. but as i mentioned earlier, right up there with consumer staples, utilities, which have been strong as treasury yields have stayed low. what does it say about this overall environment? are we in a sluggish, slow growth 2% rorld? if you are still recommending to
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clients to buy those big cap tech stocks. >> iny econom nthink economic i isusinesses are starting to see it, they need to expand capacity in certain areas and reinvest. it's a different type of technology stock than has led the rally so far. that's a second wind for the tech rally. watch those capital spending indicators, that's the key for tech in the second half of the year. >> jeff, thank you very much for joining us. jeff kleintop. time for chart of may. >> for me it was the dollar. it was down almost 2% for the month. it was a real tailwind for some of these multinationals and companies earnings. if you're not seeing it show up already in earnings, you're seeing it in the forecast and tone for better earnings. if it rebounds that could be a
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return for multinationals, name it. >> mine is oil. we're running out of time. a lot of volatility but basically ended flat. "squawk box" is next. hi i'm joa.
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good morning. the pound is under pressure as a new poll says prime minister theresa may's party could lose its majority. details straight ahead. trade in focus this morning. u.s. companies inking new deals with vietnam and the president's commerce secretary signaling a possible grand bargain on trade with europe. plus president trump is handing out his digits. he's reportedly telling world leaders to call him directly on his cell phone. it's wednesday, may 31, 2017. "squawk box" begins now. ♪
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live from new york where business never sleeps, this is "squawk box." good morning. welcome to "squawk box" on cnbc. we're li we're live from the nasdaq market site in times square. u.s. futures are higher. dow futures are down by 5.5, this after the markets did close lower yesterday. it was a decline of about 50 points for the dow. it did break a seven-day winning streak for both the s&p 500 and the nasdaq. despite that, some of the technology stocks were stronger. that did put a floor on the losses. if you look at what happened overnight in asia, nikkei down slightly, as was the hang seng. shanghai higher by a quarter


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