Im sara eisen im mike in for bill friend frost. We are starting friday with a song from taylor swifts new album. It was released at midnight. Featuring ed sheeran i will hear a lot of it around the house. Wilfred took the day off because it was such a big day and releasing the album. He needed to take it all in lets get a check on the Global Markets after a sell off on wall street wasnt as bad as it got during session lows, but the s p and dow had their worst day in two weeks. The pressure continue this is morning. We are set to break an eightweek win streak when it comes to u. S. Stocks, which are pointed lower for the week less than 2 of a decline if you add up the week. Dow down 65, nasdaq down 24. It has been the nasdaq thats been under the most pressure thats also been the biggest winner russell 2000 is down more than a percent. Treasury note yield. Lower yields back to the bottom of the range 237. Although, getting a pop today. Well see where that goes. Selling of treasuries this morning, yields higher thats the opposite of what we have seen. Steady, its been mostly a stock market phenomenon in terms of the sell off. Asian equities, which is where the selling started yesterday in japan after a great run. They are also now back on their heels. Nikkei down. 8 . Hang sang slightly weaker. Mainland china is stronger, headlines about a new ability to invest in the banks and south korea giving up a bit. Not dramatic moves, but cautious europe, yesterday to the downside coming into the u. S. Session, germany was down a percent in a half at the end yes yegermany is down and francei down after smaller losses. The Broader Market picture, oil prices have been stronger overall for the last month or so pti crude is up this morning a little more than a tenth of a per cent brent crude up almost a half percent. Nat gas pops the dollar is heading for the weakest week it had been perking up, near a fourmonth high. That goes back, following yields lower and the overall pullback and lowered expectations for tax reform this morning, the dollar is weaker against the japanese yen, 113. 42 unchanged against the pound. Gold prices, not much of a bid for gold show you on the back of the bigger value, gold is down the senate gop announcing the tax plan and the house has its own version. They are both advancing their bills, which are very different. They are. They got over big hurdles, but a lot of potholes remain here. In the senate, key lawmakers are raising concerns over this tax jeff flake of arizona is one of them he is worried about the impact on the National Debt real tax reform should be fiscally responsible the bill is expected to cost 1. 496 trillion over a decade. Senators marco rubio and mike lee issue a statement criticizing the tax cuts as not enough for working families. They want to double the tax credit to 2,000 the senate proposing 1650 marc rubio said he will vote against it if the credit isnt big enough it delays the deduction of the Corporate Tax rate until 2019 and fully repeals the deduction for state and local taxes. That istough to reconcile with the house version that cuts taxes for businesses immediately and keeps part of the deduction for property taxes i spoke with kevin brady after his committee passed the bill yesterday. He acknowledged both chambers have more work to do we look to make improvements in a range of areas at every step of the way. So, we are listening to members and lawmakers on a variety of certain deductions and issues and provisions i look forward to continuing to improve the bill they have laid out the parameters for the policy debate now, messy politics of getting this passed. How much time do both houses have to reconcile the meeting. Selfimposed timetable they have to pass a budget it seems as if they have set the deadlines out there. Thanksgiving seems like a long shot, doesnt it . Yeah, getting this passed out of the senate by thanksgiving is not going to happen. The plan is for the Senate Finance committee, the Tax Writing Committee to have a debate on this next week and hopefully, for them, pass it out next week and come back after thanksgiving to get it passed. The house is determined to try to vote on this on the floor before they leave for thanksgiving recess to keep the ball rolling is the administration going to be on board with a delayed of Corporate Tax cut . Thats not what President Trump wants. That isnt what President Trump wants because mnuchin said as much. The challenge is making the numbers work they have a 1. 5 trillion cap. Economic growth and score it how ever they want they cannot do that under the rules of the senate. They can do it to help sell the bill to the public and say it will happen in the long run. Under the complicated senate process, they have to use that scoring. This is reconciliation. Thats right. To get this passed with only republican votes, this is the process they have to use this is an example of the process shaping the policy here. Good to see you good to see you, too. Talk to you in a bit. Johnson and johnson ceo weighed in here is what he told jim cramer on mad money. Starts with tax policy. How do we have competitive tax policy companies arent making bad decisions of moving things around based on tax alone. How do we create jobs. S. T. E. M. Jobs here you can see more comments on cnbc. Com the other story, earnings for disney shares went on a roller coaster ride after an earnings miss. It dropped 4 or so then did an about face as the Conference Call got under way the ceo bob iger made pricing about the app. Here is what he said we have given a lot of thought to pricing espn and the disney brand and service. I cant get specific with you, yet. We havent actually determined it we said we will be forthcoming with you on this sometime after the first of the year. I can say that our plan on the disney side is to price this substantially below where netflix is clearly a lot of investor interest in this joining us on the cnbc news line, a research, welcome. Thanks for calling in. There was a lot of moving parts between the new app, the miss on revenues, of course, chatter and explanation on the deal. What is the upshot good morning. I think there was a lot of positivity taken away from the results. You know, the direct consumer survey, the International Parks contribution, which is just gaining traction the pipeline is robust last quarter was somewhat of a reset quarter that was depressed by investment and the Hurricane Maria impact, when you think about this new fiscal year, theres several catalysts, i think, really going to, you know, change the complexion of the company. I think the competitor that is taking notes and i expect you are going to see more radical, you know, decisions and strategies to separate disney from the rest of the pack. Theres also new focus on the strong slate of film releases that disney has in theaters into next year as well. I wonder, on the direct to Consumer Expectations for this kind of streaming product that bob iger says should be priced below netflix. What do the economics look like on that . They know what they earn per subscriber through their bundle of cable networks. What kind of lee way do they have to price it cheaply and not give up that base . Caller i think they have a lot of leverage. First of all, its so important to get the price right history has proven that sets the tone for what they expect and the traction they are going to get off the block. In terms of your question, i believe that if any company is positioned to really make that balance between, you know, direct to consumer, you know, that leap and balance the traditional economics, i think disney is well positioned to do that disney is still going to be enjoying the economics from the, you know, traditional ecosystem. The lineup they are talking about in terms of thousands of content, espn or for disney service, as well as the film they have coming out this year, a marvel picture lieu kus film it doesnt get better than that. The economics are going to play out. This is going to be different from the other upstarts. This is not what disney is talking about here this is Ground Breaking paradigm shift that displaces netflix in the window this is billions of dollars that need to be recooped and replaced it bodes well for that effort. You sound very positive what is your target . Are you making changes we are at 120 target price for the next 12 months as you alluded to the stocks dropped and popped again investors have begun to digest the news and look beyond the last fiscal year the theme parks invested 1 billion to build scstar wars. Theres a lot to make the shares reach our target thank you for calling in this morning on disney shares, which are up almost 1 in the preparkt has bob iger looked past the problems of espn i dont think look past, but put into perspective its not a free fall the business at espn is not collapsing theres catalysts and the deal speculation its an extra loop. Yeah in other corporate news, at t ceo insisted he never offered to sell cnn as a planned merger for time warner at t ceo on the record at the deal book conference with cnbcs andrew ross. He said shooting down reports he offered to sell cnn to get the government approval for the merger with time warner. I have never been told that the price of getting the deal done was selling cnn, period like wise, i have never offered to sell cnn. There is absolutely no intention we would ever sell cnn the comments follow reports d. O. J. Wants them to sell cnn or directv for the 85 billion deal acquisition of time warner while he was emphatic about not selling cnn, he refused to say whether directv was on the table for discussion he stressed the confidential nature of the subject. Take a look, stock shares up of time warner and at t time warner up slightly, at t flat line. Back to you. Thank you very much played down the political noise around whether the president wanted them to sell. We also heard from twitter ceo jack dorsey. He spoke of President Trumps twitter account being deactivated. The account was not removed, it was not suspended it was deactivated thats very different than what you would assume it was not deleted, it was put in a state waiting for the owner to come back to it and reactivate it. Did the owner yes otherwise, the president . Yes he came back to it . He came back to it. How did he reactivated it did they call you we have conversations we have conversations, yeah. He said the company has to, quote, flex new muscles when it comes to being transparent about how or why accounts are blocked. Shares are down on the market. Trump tirade the president lashing out at china and other asian nations over trade imbalances. We are live in china with details. Worldwide exchange will be right back me saving for a hous, or starting a college fund for my son. Actually, i want to know what youre thinking. Knowing that the most important goals are yours. Its how edward jones makes sense of investing. For years, at t has been promising fast internet to Small Businesses. But for many businesses, its out of reach. Why promise something you cant deliver . Comcast business is different. We deliver superfast internet with speeds of 250 megabits per second across our entire network, to more companies, in more locations, than at t. We do business where you do business. Welcome back lets get you up to speed on the market action. Futures under pressure after a down day that left the s p and dow with the worst day in weeks. The q is from over seas markets. Theres some concern about the delay on the Corporate Tax cut which exasperated the losses when the senate came out with their plan s p down 7. 5, nasdaq down 22 the market skated through that september, october period that was supposed to be tough. Giveback here, i think whatever the headlines are, theres something. The context is key. Record highs they have ignored so many things it is reacting to something. President trump is lashing out at china and other asian nations for chronic trade abuses he made those remarks hours ago after landing in vietnam lets get to kayla with more hi, kayla. Reporter hey, mike, good morning. President trump was the keynote to open the apex summit, a gathering of 21 nations grappling with trumps decision to leave the partnership they are set to agree in principle to a new deal that represents roughly a third of the gdp of the old deal. Trump, in his speech, extolled virtues of America First in bilateral deals, instead i will make bilateral trade agreements with any indo pacific nation that wants to be our partner and have fair and resipricol trade we will not tie our hands, surrender and make enforcement practically impossible he spent much of the speech calling out, indirectly, offenders of the World Trade Organization for abuses like intellectual property theft, cyber theft and others that seems to point at vietnam, the host country, and china, the country where trump just left. We spoke to the chairman of a Venture Capital firm he participated in a discussion with the u. S. Ambassador to china as well as Jared Kushner and he said that the leaders got along well ask the ambassador what he feels about this meeting because he was there and, of course, he iss also known as a longtime friend, a good friend with president xi and he said that high level chemistry is fantastic and both side, of course, realize we have challenges they really say nice framework for future growth. Reporter he thinks its a good thing the u. S. Is no longer in tpp because there are so many issues between just the u. S. And china, now they can work them out themselves without the distraction of a multilateral deal the u. S. Has to comply with i know you like looking at the International Papers this morning, this is the front page, red carpet for trump in beijing, but tough tests still to come. There are a lot of tough tests on north korea and trade well see how they proceed from here i think, kayla, based on your reporting and what i read, the president s tone and what hes saying about trade, while it does jive with his thoughts on the trade deficits are bad and we need to go bilateral and unfair practices have been toned down, more diplomatic, more k cordial and there are subtle jabs at vietnam and china, it seems friendly at a highlevel perspective. Am i right reporter true, sara, but, we are not in closed door meetings where it was the responsibility of the u. S. Trade representative to really go year by year on the trade deficit and show china where they are taking issue with i think the fact that they are honing in on the trade deficit gives them something to work toward a solution on it seems like the administration is changing the source of blame from china, specifically, to the prior administrations who let the deficit balloon and as secretary tillerson described the cause of the deficit, he said this is a cause of benign neglect. They are turning down the rhetoric, but trying to work toward a solution at the same time that came out in twitter as well big news out of china overnight as it relates to regulation, the government relaxing roles on who can invest in banks. Tell us a little bit about this. Reporter so, this would be a change that a chinese official said would take place in three years, allowing joint ventures established between the u. S. And china. U. S. Firms could have 51 ownership instead of the 49 its going to take place three years from now its a very slight change. Im told the white house actually reburred a proposal to announce financial reforms in the trip because they felt like it wasnt substantial enough or a creed of value to be something that they could announce as a victory. I mean, this is something china has been pledging for a very long time. Its unclear, first, how they would enforce this theres no guarantee in three years they will do this. Its an act of good faith. If you have say ownership, how much control can you exercise . It might be a formality. Well see how it plays out in practice its a move in the right direction, though. Kayla, thank you. Still ahead, revved up, shares in overdrive following a big earnings beat. Thats interesting and some other stocks to watch we have a lot of earnings movers including vivia. Worldwide exchange will be right back i love you, couch. You give us comfort. And we give you bare feet, backsweat, and gordos. Everything. I love you, but sometimes you stink. Soft surfaces trap odors. Febreze fabric refresher cleans them away for good. Because the things you love the most can stink. And plug in febreze to keep your whole room fresh for up to 45 days. Breathe happy with febreze. Still ahead on Worldwide Exchange, a round up of global marks with the dow down 50 points at this hour. Plus, creating a mcflurry, theres an app for that. How to get the inside scoop on local mcdonalds ice cream machine. Your joints. Or your digestion. So why wouldnt you take something for the most important part of you. Your brain. With an ingredient originally found in jellyfish, prevagen is now the number one selling brain Health Supplement in drug stores nationwide. Prevagen. The name to remember. Hi, im the internet you knoarmless bowling. Lt . Ahhhhhhhh you know whats easy . Building your website with godaddy. Get your domain today and get a free trial of gocentral. Build a better website in under an hour. The slide continues, stocks have a lower open following the sell off whats dragging things down is straight ahead could it be taxes the house and senate plans to overhaul the tax code. We found the perfect story for early risers and movie buffs. You can now eat actual breakfast at tiffanys its friday, november 10, 2017 you are watching Worldwide Exchange on cnbc. Good morning happy friday welcome back to Worldwide Exchange, im sara eisen. Im mike in for will frost today. No breakfast at tiffanys, yet i was going to say, how early . In the movie, it was just outside the window i do. This is indoors on very fancy plates lets get a check on Global Markets. Futures in the red continuing the weakness from yesterday. The index right now, s p 500 indicated with a sevenpoint loss thats about. 25 percent the indexes above yesterdays lows, but certainly back on their heels. Nasdaq was the big loser yesterday and it is also underperforming a bit today. Clearly, it seemed like yesterday was a lot of whatever was up a lot, we sold it that included Semiconductor Stocks and defense stocks. Maybe it was the tax headlines the tenyear note, the yield curve had been narrowing its coming down as the short term is going up a bit of a break from that 2. 37 up just a couple ticks right there. So, not really a dramatic move in the fixed income market high yield debt is getting a lot of attention jeffrey tweeted earlier in the week, high yield debt selling off at record highs then when stocks fell we had bouts before theres a tax reform angle in high yield the cap on corporate interest deductions is bad for issuers. Some think thats what people are worried about. That would change the fundamentals, right . It put the issuers in a tough spot we will watch that. We always watch for signs of cracks in the credit market. Asia overnight, we saw the weakness globally and today. Japan pulled back almost a per cent it was on fire hong kong down, barely shanghai closed higher and the korean down. 3 they are on an absolute role for the past year or so since the election we tracked the s p a lot of markets are up even more, including the vietnamese stock market where the president is today lets show you whats going on yesterday was a drop in materials in miners that drag the index down they are down. 2 for the german dax. A pullback from amazing stock prices, record highs for the dax. Maybe thats inflationary maybe they are going to take away the punch bowl faster. See whats happening with the Broader Markets. Oil has been holding gains, still above 57. Natural gas up. 4. Its been on a role. We have very cold weather here in the east, i think we have a weather trade in natural gas in Foreign Exchange markets, the dollar, which had been in rally mode backed off yesterday. Its consolidating here. It is weaker against the euro, the yen and pound. Not too dramatic in terms of those. Still well off the recent lows gold has been soft as well, not really making a big move but has not really gotten any lift from that dollar. In political news, Senate Republicans unveiled their new tax plan as they advance their version of the bill. We have more how far apart are the plans . They are different. Republicans made progress yesterday, but theres still a long way to go here. There are still plenty of potholes to watch out for as well in the senate key lawmakers are raising concerns over the tax plan jeff flake of arizona is worried about the impact on National Debt saying tax reform should be fiscally responsible it is projected to cost 1. 496 trillion over the next decade. Meanwhile, you have senators marco rubio and mike lee issuing a statement saying its not enough for working families. They want to double the Child Tax Credit to 2000. They proposed 1650. Rubio said he is willing to vote against the bill if the credit isnt big enough the senate plan delays the reduction in the Corporate Tax rate until 2019 and fully repeals the deduction for state and local taxes. Thats going to make it tough to reconcile with the house version of this bill, which cuts taxes for businesses immediately and keeps part of the deduction for property taxes i spoke with the house ways and means committee, kevin brady after he passed the bill yesterday. He acknowledged chambers have more work to do. We look to make improvements in a range of areas at every step of the way. So, we are listening to members and lawmakers on a variety of certain deductions and issues and provisions i look forward to continuing to improve the bill we now know what the parameters are for the debate over the policy, the politics, however, are always going to be messy. As you laid it out there, its reminiscent of health care, objections coming from two sides. On one side, we dont want to, you know, have a bigger deficit than we anticipated. We want to be careful. On the other side, hey, its not generous enough to middle class families and the pay force, so to speak, are also really disliked so, how does it all boil together one difference is that in this case, the conservatives, the freedom caucus, they are fully on board with this plan. They are not worried about the deficit at all even though they sounded alarm bells for years. By cutting taxes, you stimulate Economic Growth and that will eventually take care of the deficit in the long run. You have the conservatives on the house side getting on this plan that is a key difference from what we saw. With the faction that often acts as a group and can make trouble is okay with it. Its about building coalitions if you have a coalition that is willing to stand behind the bill, thats important for the markets, the most important factor or what they are teeing off is whether we see a corporate cut next year or delays until 2019. Which is more realistic at this point . Honestly, its up in the air. One reason they went with the delay in the Corporate Tax rate is because what they know is if you make the Corporate Tax rate temporary and get rid of it on the back nd, that costs you a lot of the growth benefits businesses are going to pull forward that investment. They believe a fazein is less harmful to growth than a phaseout if its 2019, gaming next Year Companies are not going to want to recognize profits as much as they could it could be noisy. If its out there, its permanent. President trump wants to get to 3 as fast as possible. Thank you in earnings news, disney shares went on a roller coaster ride after reporting an earnings miss the stock initially dropped then an about face as the Conference Call got under way the turn around on the comments bob iger said. We have given a lot of thought about pricing espn and the disney brand of service. I cant get specific with you, yet. We havent officially determined it but we will be forthcoming with you on this sometime after the first of the year. I can say that our plan on the disney side is to price this substantially below where netflix is as for the quarter, disney reported an earnings miss on revenues disneys Media Network saw a 12 decline year on year whats important here . The median network is important. Thats a known story and people know it is eroding the idea they are getting down to specifics, how we are going price this, assemble content for the consumer in the meantime, they have a surge of studio releases in the franchise movies, whether its star wars, marvel and the rest the idea, maybe, is going to come together that they can manage this transition, the bridge i have been watching netflix stock today to see if they say wait, the value is getting diluted. He dodged anything about a deal for 20th century fox. Looking at strategic options. He made a series of high impact deals with pixar, marvel, lieu cal films and the streaming Technology None of them are like buying no, they wouldnt i have to say, taken together, they are bigger than the assets they were buying on fox. Certainly investors got excited about that disney stock shot up, 20th century stock shot up. Some other stocks to watch shares of nvidia, thanks to surging revenues from the core gaming market. Thought they were lower knuth thnothing that keeps in people seem to like those numbers right now. Nordstrom posting lower than expected sales last night in the latest quarter the retailer says hurricanes hurt traffic in puerto rico, florida and texas. Its near the lows since that idea of a lbo taking a private company went away. News corp. They say results were driven on expenses and Revenue Growth other stocks to watch, hertz shares are jumping the Car Rental Company saw higher revenues despite canceled reservations in parts of the u. S. Still, hertz warns they have to lift spending as they enter a period of weaker demand. The stocks shot up on the news its been weak the whole group toshiba considering a 5. 3 billion capital injection. They are weighing the eye of offering idea s of a third party the massive data breach profits dropped. Results were hurt by cost related to the breach. I think the legal trouble is going to be more of a mover than earnings time for top trending stories now. You can actually have breakfast at tiffanys the luxury retailer flag ship store opening the cafe where fans can dine on classic american dishes. The restaurant features floortoceiling accents marble and china plates. It features a set menu at 29 for breakfast, 39 for lunch and 49 for tea. Among the items, avocado toast and truffled eggs if you can make it past the security lines next to trump tower. I wonder if they are going to bring back other stuff from the movie. They have a sterling silver telephone dialer oh, maybe they could do that. But, this is the way restaurants should have gone a long, excuse me, retailers with the experience factor. There was always a restaurant in macys and bloomingdales. That was a big deal. Nobody does it better than japan. The food halls, out of this world. They have been doing that forever. Tiffanys is a little late lets see how they do, 29 breakfast, thats a little steep. Other good news, if you are hungry, ice cream lovers, an app to fell the ice cream machine is working. Ice check lets you find the closest mcdonalds and report whether or not the flurry machine is up and running. Who knew it was a problem i dont know how it works, if mcdonalds is letting this information be known i guess its a frustration for people in the summertime im very savvy about ice cream. I dont like mcdonalds. People that love mcdonalds stock say the future is the app that you put in an order and it tells you which one to go to, the nearest one if you are on the highway. That seems more useful. Apple finally issuing a patch for the recent ios keyboard glitch. Replacing the letter i with a combination of the a with a question mark. Now they can install the latest software and the glitch should stop yeah. Of course john already found a way around it before that. Yeah. I dont have the new one. This, apparently was a thing taylor swift, dropping her highly anticipated album overnight. She debuted her brandnew song called new years day during the latest episode of scandal. Reputation is already number one, five and a half hours after the release. My husband is a huge taylor swift fan. He texted the album is incredible the whole thing the whole thing he didnt like a lot of recent singles. I cant think of one my daughter sings all the time she sings about her life experiences. Very authentic coming up, the must read stories. Why blocking the at t time warner merger might be the right call as we head out to break, another check of u. S. Futures. The downside slightly smaller indicated loss zs following the drop. Well be right back. My ambition is to find something. Me. Ambitions live everywhere. Synchrony financial gives people the buying power and financial toolsthat help make them happen. Synchrony financial. What are you working forward to . The market. Redict but through good times and bad. At t. Rowe price. Weve helped our investors stay confident for over 75 years. Call us or your advisor. T. Rowe price. Invest with confidence. From godaddy in fact, 68 of people who have built their. Website using gocentral, did it in under an hour, and you can too. Build a better website in under an hour. With gocentral from godaddy. Welcome back to Worldwide Exchange. Im mike here with sara for the must reads my pick in the new york times, why blocking the at t time warner merger might be right tim woo writes, the department seems right to worry about the idea of at t, the onetime telephone monopoly with annual revenue taking over one of americas most Important Media operations the Justice Department would absent the trump effect, the fact trump does not like cnn, seem logical and a continuation of recent merger practice. The argument is that the market power of having one of the biggest Wireless Networks in todays market is so strong they could put exclusive content out there. In fact, they had a taylor swift offering, at t they said only for at t subscribers. Essentially, theres enough ways to privilege their own content, they should askfor something structural mostly, the argument is because of the behavioral remedies saying, look, you have to agree to behave in a certain way has not been seen as effective i dont think it means they want to blow up the deal, but they are serious about making sure. There is a rational to put forward as to why this might be. This comes from an antitrust lawyer somebody who looked at the power of digital listening to randall stephenson, the crow of toat t make his case, what they should argue as they should, we are trying to compete with google, facebook, amazon, netflix. How can you say this gives us too much scale to do so, given what these empires have built. Scott tweeting google has such a tremendous portion of the digital ad market that this would be kind of a tiny little competitor if you look at it that way, what the ultimate market is its going to come down to whether, as david faber has been talking, vertical immigration or hor so horizontal it is it going to be so big and powerful sure. Its like, if its worth at t doing, there has to be a reason. Your own content is going to do better than somebody else. I mean, thats not a legal argument, just i think i have to prove its not going to give them Pricing Power over consumers not with hold the content up next, it comes back to taylor swift, doesnt it everything. Well give you a quick check, tax reform earnings will be front and center today u. S. Cfincondee numbers. We set you up for the trading when we return it can detect a threat using ai, and respond 60 times faster. It lets you know where your data lives, down to the very server. It keeps your insights from prying eyes, so theyre used by no one else but you. It. Is. The cloud. The ibm cloud. The cloud thats designed for your data. Ai ready. Secure to the core. The ibm cloud is the cloud for business. Yours. If they knew just howers rich they were. Ed the average American Home value has increased 40,000 over the last 5 years. But many dont know you can access that money without refinancing or selling your home. With a home equity loan, you can pull cash out of your house for anything you need home improvement, college tuition, even finally getting out of credit card debt. Come to lendingtree. Com to shop and compare home equity loans right now. Because at lendingtree, when banks compete, you win. Jimmys gotten used to his whole yup, hes gone noseblind. Odors. He thinks it smells fine, but his mom smells this. Luckily for all your hardtowash fabrics. Theres febreze fabric refresher. Febreze doesnt just mask, it eliminates odors youve. Gone noseblind to. And try Febreze Unstopables for fabric. With up to twice the fresh scent power, youll want to try it. Again and again and maybe just one more time. Indulge in irresistible freshness. Febreze unstopables. Breathe happy. Welcome back im sara eisen u. S. Equities are pointing to a lower start. Futures are down 40. We have seen an improvement of ten points s p down seven chad is here, Portfolio Manager of Washington Crossing advisers. Anything to worry about in the pullback we have seen in the last 2448 hours i wouldnt be terribly concerned. The reality is we have had a tremendous run up over the last 1218 months with little volatility the one key focus that we have for the next, lets say three quarters is as the Federal Reserve readjusts Interest Rates higher, that makes it more appealing to be on the short end of theyearold curve as opposed to the equity markets. Its a low return environment of 4 to 5 on a total return basis over the next several years. Some time in the next six months the twotreasury is 6 . You think people should think about, you know, switching off yeah, i believe that to be the case as the Federal Reserve raises Interest Rates, we think they are going to go three times. 25 points that becomes a more competitive asset class to long Term Forecast returns on the equity market, 4 to 5 you could have said that last year and the opposite happened the problem is you had the Federal Reserve and rates on the two year quite low the earnings yield looked more competitive in relationship to the yield curve. So, as you started to see the melt up of the overall markets, then you start to see earnings yield that doesnt look as competitive. Market cap gdp is high trailing earnings are quite high as well. So, you just want to be more balanced about the risk you are taking in that environment, i wonder if the next thing the market is going to focus on, 2018 earnings, are they achievable in the ballpark at the current levels, with or without tax reform our expectation is they are going to come in more subdued than everyone is expecting not just earnings, but Revenue Growth for 2018. That said, its a positive trend higher for earnings on a global basis as well as Global Growth overall. We think it is going to be subdued. When it comes to tax reform, we think that will be somewhat of a letdown in regard to impulse into earnings as well as u. S. Growth are you still sticking with your defensive Consumer Staples you like for a long time, which arent producing the same earnings power we want to be more defensive in the portfolio that said, we have an overall weight when it comes to growth over value, we have growth as an overweight for certain opportunities like large cap tech, old world tech, at this point. We want to also be overweight when it comes to the fixed income side to high yield for this point in time you do . Even though spreads are narrow and its wobbly . We think overall you are going to get your coupon, get your yield and not get anything but that we think the Credit System is the long footing overall you are going to get your 4. 5 to 5 yield. Again, we are not married to that asset class we want to stay there for several quarters thank you thank you you are watching the danfidence data, more earnings toy. Well see how averages go. Squawk box is next thanks for loading, sweetie. Oh, burnton gravy . Gotta rinse that. Nope. No way. Nada. Really . Dish issues . Throw it all in. Cascade platinum powers through even burnton gravy. Nice. Cascade. Running a Small Business is demanding. And thats why Small Business owners need more. Like internet thats up to the challenge. The gigspeed network from comcast business gives you more. With speeds up to 20 times faster than the average. That means powering more devices, more video conferencing, and more downloads in seconds, not minutes. Get fast internet and add phone and tv for only 34. 90 more per month. Comcast is building americas largest gigspeed network to give Small Businesses more. Call 18005016000 today. Good morning stocks pointing to a mixed open an wall street following yesterdays sell off for a while it looked that way when it was said and done on a percentage basis, it wasnt much on the agenda, earnings, tax reform and President Trump trade comments over in vietnam disney drops, then rebounds after reporting a big earnings miss well tell you what drove the turn around. Plus, legendary investor, ron baron is holding a conference. Becky is there to get ideas. Top ceos in the financial world and the hotel and Leisure Business on this friday, november 10, 2017. Squawk box begins right now. Announcer live from new york where business never sleeps, this is squawk box. Good morning welcome to squawk box here on cnbc we are live at the nasdaq. Joining us this morning live from the new York Metropolitan Opera house, the site of the baron conference, becky, what is coming up . Reporter hey good morning by the way, fresh out deal book. Great to see you, andrew we were blocks away from each other yesterday and today. Yeah like that. We have a lot of stuff. All of the deal book stuff we are talking ant. There was great news out