Worldwide exchange on cnbc im wilfred frost. We will get to the markets they are pointing higher yesterday we had a triple digit decline for the dow, down more than 130 points. We are bouncing back this morning. Not quite triple digits. Up 92 points for the dow 10 points for the s p. The nasdaq up 30 points. Energy the worst sector yesterday. Oil prices continued their recent two or threeday slide. Energy sector down 1. 2 . The best sector was financials up 0. 2 . In part getting a boost when richard cadre, the cfpb chief announced he would go eight months before the end of his term he was one of the last few remaining obama pro regulation i appointments in powerful positions. His departure helped some of the consuming lending banks in particular lets look at why were higher in part because of the rest of the world was higher yesterday the rests of the world was lower and that fed into a generally riskoff tone by the time we opened bouncing back. The nikkei up 1. 5 down 1 yesterday. Europe is bouncing back. Yesterday the dax was down 1 . Today were up about 0. 5 . 0. 6 for the continental european markets the ftse 100 is flat retail sales from the uk were down 0. 3 . The consensus was down 0. 5 . We just had eurozone cpi expected at 1. 4 last time it came in at 1. 4 , came in just below that, 1. 3 lets look at the treasury board. Yields have slid significantly in recent weeks. We ended on friday at 2. 4 , well below that at 2. 36 at the moment yesterday did see a pause in terms of that slide in the tenyear its kind of paused again today because we were slower than this 2. 36 on the tenyear. Either way certainly seeing the yield curve flatten over the last couple of weeks the twoyear has been ticking up oil prices slipped yesterday not as much as the prior day down about 0. 6 . Today down a bit 0. 2 55. 2 the Energy Sector is the worst performing week to date on the s p 500. Dollar board did not slide yesterday as it had the prior day and earlier in the session, ended up flat. But this morning, as you can see, getting a bit of a bounce back from some recent weakness the dollar at 0. 3 as you can see moving against the yen just higher this morning. Lets talk more about the markets, joining us is guy ad adami. Good morning, wilf. Youre flying solo, my man not anymore, you have joined me, albeit just on the phone what was the reason for the sell offyesterda yesterday profit taking . I think people in china are looking at tenyear yields in china, highest in quite some time are the chinese not only just sort of tapping the brakes but putting their foot on the brakes if thats the great Growth Engine behind everything if theyre slowing things down, it could concern folks no he now here we are. This is a market that continues to grind higher regardless of news flow. Are you concerned about the shape of the yield curve, the change weve seen in the last couple of weeks two years at significant highs, tenyear losing some steam in terms of the yield level . 100 . Its not so much well, it is the yield curve. I think we got down to about 67 basis points, but the speed in which the yield curve is flattening which is pretty startaling its been a quick move in a short period of time if the economy is as strong as the stock market suggests, we should not be seeing yields where they are and we shouldnt see a flattening yield curve is the fed going to hike us into recession . As you know, they control the front end of the curve obviously the market controls everything else. So for me, that is concerning 100 its one of those things the market doesnt care until it cares. Im not trying to be glib, but thats the truth we did see apple off 1. 3 or so some other big tech names as well are you dipping back into those . Is that a buying opportunity for apple it has been for some time. You think about it the vix is something that spikes and eases back spikes, eases back people have gotten so complacent and so used to buy every selloff and everything, its almost pavlovi pavlovian. You will wake up one day, in my opinion, where the s p is down ten handles, closes down 15 handles, and you will see a continuation right now were not in that sort of environment to your point europe remains strong the dax is at the whisper of an alltime high. Let me point out one thing you have the german dax effectively at an alltime high. It would be interesting to overlay a Deutsche Bank chart. As the dax has been going straight up, Deutsche Bank for all intents and purposes has been going straight down with a little move to the upside along the way. What is the biggest bank in germany telling you that the market refuses to see . Im not sure what that is. Thats worth watching as well. As well, in some of the markets that have hit record highs in europe, they have been based on Euro Weakness which doesnt feed into the banks, because Euro Weakness comes from low yields 100 . You see some of the data out of europe how much longer are they going to be able to keep yields down you mentioned the dollar and currencies i would submit that all these central bankers, whether they realize it or not are trying to sort of ill use the teterm torch their currency why . As you know, the weaker your currency is, the more attractive your goods are in a global race to zero, wilf youre a smart, tall, attractive man, who is the winner there are none on the point of the ecb, the other interesting thing to watch there is credit. Credit spreads are tight, on days when you see equity selloff, you dont see european credit flinch. Mr. Adami, well leave it there. One day ill come in, ill be your copilot. I look for that immensely nelson peltz battle for a board seat at p g just took a twist. This was very exciting late yesterday. It all came down to 43,000 votes. This is remarkable thats the amount that swung the election to nelson peltz in a recount. This could be a black eye for p g. The Company Announced about a month ago their preliminary tally indicated peltz had lost the board seat now the two sides go into the snakep snakepit this ised advisers go through each ballot one by one and make sure they were counted correctly. Shareholders in proxy contexts can vote more than once with only the last vote counting. So theres more room for error with 43,000 votes at stake, they could find something that swings this election back to p gs favor. 43,000 votes out of 2 billion shares outstanding is 0. 0016 of the company. P g spent 35 million on this proxy fight. Theyre not going to just walk away shareholders like the prospect of peltz on the board. The stock rallied in afterhours trading yesterday when this was announced. So many questions the first, even though this swung from the opposite direction this is not decided yet. This is still preliminary in theory either way, big win in the shortterm for nelson peltz. Is there anything added to p g, anything they said after the result that looks embarrassing for them . They were certainly quick to claim victory. They did caution that was a preliminary tabulation its very fuzzy how this all gets calculated. Basically what happens is after the votes are calculated, after the annual meeting about a month ago, each side was receiving information from the proxy solicitors that showed, especially the electronic votes that came through, but the challenging aspect about p g in particular is that its 40 retail so there were a lot of paper ballots with which one, which is not as common in other proxy fights paper ballots are more difficult to sift through because it has to be signed correctly, it has to be the right color. People have to know what theyre doing as far as checking the right box for which candidates they want to elect to the board or not so, with all of that fuzziness, theres a lot of room for error. You can vote more than once also so you have all of this paper youre sifting through thats what they did after the votes, after the preliminary tally was announced. Potentially for broader activists, a victory if this does come through having thought peltz had lost this and ackman lost his recent battle with adp. Thank you very much. In political news, President Trump is headed to capitol hill today where he will try to secure a big win on tax reform his visit comes the same day the house plans to vote on their tax bill the senates efforts to overall the u. S. Tax code are hitting some friction. Republican senator ron johnson says he will not support the current bill because it unfairly benefits corporations more than other businesses Senate Republicans can only afford two members to break from their ranks if they want to get the measure passed well hear much more from senator ron johnson at 7 30 a. M. On squawk box. Ti time inc is in talkes to sell itself to Meredith Group the Koch Brothers have tentat e tentatively agreed to the offer by sinking more than 5 500 million into the dole. Talks fell apart back in april. Mattel rejecting hasbros latest takeover offer. Kate roddegers has those details reuters says mattel believes the offer undervalues the company and doesnt take into account the potential for regulators to reject the deal on antitrust grounds. Reuters say mattels new ceo may be trying to drive a harder bargain in talks with hasbro even though mattel has struggled compared to its rival this year. The company has cut its fullyear revenue forecast citing the bankruptcy of toys r us shares of mattel are down 1 , and hasbro is flat. Cisco systems reporting better than expected First Quarter earnings on strength in its security business. The company is also forecasting Revenue Growth this quarter which would break 8 straight quarters of declines netapp Second Quarter earnings and revenue beat forecasts. Third Quarter Results are expected to top expectations thanks for hyper converged infrastructure technology. L brands Third Quarter earnings were in line with forecasts but samestore sales fell at victoria secret. They cite the negative impact of its exit from swimwear and other apparel. Still ahead on Worldwide Exchange, Morgan StanleyCeo James Gorman sitting down with cnbc to talk reform, trading revenues and brexit. His exclusive comments straight ahead. And smashing records, this da vinci painting just became the most expensive piece of art ever full details when Worldwide Exchange returns. What we do every night is like something out of a strange dream. Except that the next morning it all makes sense. To power global ecommerce Fedex Networks are massive, farreaching and, yes. A little magical. Fedex. Com slash dream welcome back to Worldwide Exchange. Morgan stanleys Ceo James Gorman sitting down with cnbc to talk everything from the market to the fed to banks and brexit plans. He talked tax reform and whether or not it will get done. Heres what he said this morning. We will have more comments or not more, any of his comments coming up later. Theyre not ready at this stage. Instead, we will take no, were not. Well stay with you. Jobless claims are on the docket today. Lets run through todays agenda 8 30 a. M. Come jobless claims. Industrial production at 9 15. The monthly home builder survey at 10 00 Lael Brainard and rob kaplan are speaking today as well walmart and best buy report earnings before the opening bell along with viacom and Manchester United were not meant to take views on stocks, i hope they do badly on the pitch. After today, we will hear from gap and williamssonoma and cocacola is holding an investor day in atlanta dont miss sarahs interview with the ceo of the company at 10 00 a. M. Eastern time. A lot of retailers reporting today. What can we expect to hear lets bring in jan kniffen of kniffen worldwide and cnbc contributor. Good morning to you. Good morning. Lets talk off quickly with yesterdays big mover, target down 10 main reason for that and can it bounce back . Is it now cheap . I dont think its cheap. I havent been a fan of target for a while. I used to say back in 2006, target was the best retailer in the country, maybe along with hd and costco they have not been since i wasnt a fan when they went into groceries, theyre still in groceries, i think its a problem. I wasnt a fan when they were in kach canada im not a fan of their loyalty program, it is too much of a discount when i decided amazon and walmart were going to fight to take over the world, i decided target was not i cannot get excited about them and their space because i dont think they have a way to come back theyre doing a good job now, retailing 101. I dont see what retail ing 102 will change to make them competitive. I done see how they fix grocery when the new grocery to me is amazon, and the old grocery is walmart. Along with that theres kroger its a tough space. Lets talk about walmart they report today what are the key things youre looking for. I want to see if they have another quarter of up traffic and up comps that will tell us theyre continuing back on the road to what i would describe as the return to what they always wanted to do, be dominant in the space, price, price, price, have the stores in stock. Theyre doing all the right things then there was the acquisition of jet i was a fan of that. I think they have to be the biggest menace to amazon with that, is mark laurie the most important part of that acquisition . How does he compare in terms of a tech leader of the future compared to someone like jeff bezos . Mark laurie wants to drive amazon into the sea. I dont know that he k but i love the attitude. Yes, i think buying mark laurie was one of the smartest things that Doug Mcmillan has done. He has had quite a run since he took over the reins. Quickly, gap and best buy today. Are they up against it im a best buy fan. Im not a gap fan. I think gap itself, the gap name is really struggling theyre doing better at old navy, but theyre not strong at banana republic. I dont see what theyre going to do to get that fixed. Best buy, i have in the last man standing category. They have won their space as much as you can win electronics. Theyre going to be there a long time they reconfigured the stores, leased out space they have done all the things you have to do its still a tough space if you want to be in that space, best buy will win in the category thank you very much for joining me still ahead on Worldwide Exchange, well actually get some comments from james gorman, and later, the nfl accusing jerry jones of hurting the league well have the latest on the big money sports dma wrahen we come back welcome back james gorman sitting down with cnbc to talk everything about the market to the fed to the banks brexit plans he also talked tax reform and whether or not the u. S. Is likely to get it done. Heres what he told cnbc this morning. The Administration Knows if they dont get this tax plan done, 2017 was a wasted opportunity. Theres a republican congress, a republican administration, this was a core plank of the administrations platform. I think a plan should get done but its not certain james gorman also talked about trading revenues heres when he thinks things will start to turn around. I think next year, if we get a Corporate Tax plan done, rates start ticking up, q erngs continues the path theyre on. Well start to see more normal volatility kick in and with that more normal trading revenue. Gorman also addressed Morgan Stanleys postbrexit strategy it is tough we dont know what post brexit looks like were in unchartered territory. Exactly i said earlier im not a british citizen, its not fair for me to say, but it was a mistake from an economic point of view. It will cost london jobs were all trying to minimize the impact of that well have to have a European Headquarters were required to. Is it front foot . Is heading that direction theres a difference between the legal entity and what were putting in terms of markets, so sales people can work in par ri is and milan. Will it involve job losses . Will involve job shifts gorman adding it doesnt necessarily result in job losses of the 5,000 jobs suggesting that thats only 10 or so that could shift and gorman was there speaking in asia lets discuss this and the broader political situation in the uk with Peter Spiegel from the financial times. Good morning to you. Good morning. At the moment were in the process of the eu withdrawal bill making its way through parliament the various opposition members to the government have added attempted amendments some of them significant some minor so far the government managing to stick to win the votes it needs to win theyre winning the votes, but some amendments its getting incredibly narrow. Theresa may does not have majority of her own party in parliament shes relying on a small Northern Irish party to get the majority and there are several votes where you see members of her conservative party rebel, even two or three are a problem for her, she doesnt have that majority many of these issues shes losing the number of her majority that is very unsettling for a lot of people. It gets to the point, you were making with Morgan Stanley we heard it a lot from the american banks because its so uncertain both in london and bilaterally with the eu, theyre beginning to hit a wall at the end of the year where they have to started making decisions on do they keep jobs in london do they have to pull the rip cord and pull the trigger on their emergency scenarios where they move people to frankfurt. We heard the same thing from people at jpmorgan, goldman sachs, Morgan Stanley. They met with wilbur ross when he was in london a couple weeks ago raising these red flags. The unsettled nature of the political environment in london is having realworld economic effects. To what extent whether were thinking about the leaders of the eu 27 or the remainders in the uk, to what extent are they pushing theresa may and the government too hard such that there may be a breaking point that she gets forced out and the result could be someone with a harder line view on brexit its a real debate within the eu in particular they see theresa may as their best option. The other options are hard line Brexiter Boris johnson or michael gove if theres an election and they have to face jeremy corbyn, could you imagine another period of uncertainty and another political election the debate is can we really negotiate with theresa may if we dont know if she can deliver, they may not be Prime Minister in two, three, six months. Whats happened here in westminster is a very bubblefocused conversation where theyre not even thinking about brussels frequently. Theyre thinking about their own political careers and futures and i guess survive focuses the mind the negotiations have almost become a side show peter, great to see you coming up on Worldwide Exchange, the top stories and a round up of the Global Market picture and one billionaires surprising breakfast secret. Jeff bezos revealing his biggest lteing indulgence wel ll you what it is. I love you, basement guest bathroom. Your privacy makes you my number 1 place to go number 2. I love you, but sometimes you stink. Febreze air effects doesnt just mask, it cleans away odors. Because the things you love the most can stink. And try febreze small spaces to clean away odors for up to 30 days. Breathe happy with febreze. The markets change. At t. Rowe price. Our disciplined approach remains. Global markets may be uncertain. But you can feel confident in our investment experience around the world. Call us or your advisor. T. Rowe price. Invest with confidence. Few futures pointing to a higher after wall street looks to recoup some of yesterdays victories. Nelson peltzs battle with p g took a dramatic twist. And they say a picture is worth a thousand words, but this picture is worth millions. Its thursday, november 16, 2017, youre watching Worldwide Exchange on cnbc. Good morning a warm welcome to Worldwide Exchange on cnbc. Im wilfred frost. Lets get straight to the Global Market picture starting with u. S. Futures yesterday a decline of 0. 5, 0. 6 or 130 points for the dow. We are expected to bounce back, not quite triple digits, 95, 96 points or so the s p up 11. Nasdaq up 31 points. Energy is the worst sector, down 1. 2 the best was financials. Up 0. 2 . Getting a boost on the news that cfpb director Richard Cordrey will step down early lets look around the rest of the world. Thats a large reason why were up today this time yesterday europe and asia was down. Japan bouncing back 1. 5 down more than 1 yesterday. In europe, we had sharp declines the dax was down more than 1 . We got a bounce back, 0. 7 , 0. 6 for france and germany the ftse 100 fractionally higher retail sales in the uk better than expected. Still down 0. 3 . And cpi in the eurozone was at 1. 3 in and around where it was expected to be lets look at the broader markets starting with oil which has been slipping this week. Down slightly. Down 0. 5 yesterday. 0. 6 down a tenth of a percent today at 55. 25 lets have a quick look at the dollar, which was down quite significantly this time yesterday. Yields did recover through the course of the day. Today it is higher by 0. 4 down a little against the pound, up against the euro. Treasury boards for you. The story the last two, three weeks has been yields slipping significantly at the long end. We were down to close to 2. 32 at the start of the week but recovered a bit on the tenyear. Meantime the shorter end of the curve has seen yields rising the general tlerend continues t be one of a flattening yield curve. Lets talk more about the markets. Joining me is art hogan, chief Market Strategist at wonderlic securities good morning to you. Good morning. Lets talk about the selloff yesterday. We had one last thursday as well having a bit of one yesterday. In general, they are few and far between at the moment. Are you not too concerned about a pullback of 0. 6 yesterday when you look at it, i think were looking for reasons to be nervous. That happens a lot when you have a year where we havent had a pullback when we see the spread getting flatter or high yield rates blowing up, even extrapolating out the move weve seen in oil, for example, and a bit of a pullback there, i think thats a reach. When we think about what we should be focusing on here, its the Economic Data and how that will drive earnings. For the most part the Economic Data stream has been positive. For example, if you were to look at wti, which is working its way up to 57, now back to 55, thats up 30 since june. Down 4 in the last two weeks. I dont think that should be a cause for alarm. I think what we should focus on is its okay to have a great year and focus on getting out. The only thing i get concerned about is the fact that weve had su such you have professionals and Portfolio Managers who may wanted to look this in early so instead of having that rally at the end of the year and seasonality in the marketplace, you may have that natural sense to lock this in and take some money off the table and head into the next year with good performance. Retail is in focus. Target yesterday a terrible set of results, down 10 walmart the main focus today what are your views on both of those. Its interesting. We clearly in a retail world, we have winners and losers. We thought l brands would do better than they did home depot put in great results. When you look at target, do we need a target, walmart and amazon at the same time all if grocery . Thats the big question. Did target go a step tooting in . Interesting to see how that proves out when you look at grocery, target, krogers, theres one too many pliey er players there that may be dragging down markets. I think they have to make structural decisions to right the ship retail in general, i think, were constructive on. Heading into the most important job season of the year, all the inputs weve seen have been relatively positive. I think if you pick your spots, find the places where theres leadership, you will have a good Holiday Shopping season. And Consumer Discretionary has been thrown out with the bath water here theres some value to be had art, great stuff. Good to see you. Art hogan of wonderlic securities. Nelson peltz has battled for a board seat at p g and took a brattic twist. Leslie picker has the details. A big turnaround potentially potentially everything is preliminary in this fight the first vote count where we saw p g saying they preliminarily won by 6 million votes. Now that is a bit closer nelson peltz is saying he won in a preliminary vote count by 43,000 votes no matter which way you slice this, this is incredibly close it may not be over yet either. P g spent 35 million on this proxy battle to get him to make sure hes not on the board do they walk away over 43,000 votes . I dont know they will keep fighting, no doubt. Lets assume nelson peltz wins this he will get a board seat of how many and what will be his top of agenda item at the next meeting . He would get a board seat at the company. In this proxy battle one thing that confused a lot of investors is the fact that there was one proxy card that had his name on it and another proxy card that had the rest of the directors. He has said he will not replace a director by coming on to the board, that he would be inclusive of everybody on the board and have him as an addition what his First Priority would be, he wrote a white paper outlining what he plans to do for prokcter gamble. One of his main tenants is to restructure the organization he said its bloated, not productive my guess would be thats something he will focus on, making sure theres more efficiency at the company. He talked about bringing newer, smaller brands into the company to appeal to millennials he talked about improving digital capacity all those things he would be at the forefront of if he were to be on the board. When we see the share price reaction of this news of him potentially winning the board seat, is that overall taken as a win for activist investors absolutely. This was an especially important proxy contest. Its the Biggest Company by market cap that has ever faced an activist. So, the fact that Something Like this is winnable, the fact it had 40 Retail Investors which are historically seen asiding with management, the fact that nelson peltz could overcome that hurdle and get enough votes to make it this close at this stage of the process could influence other activists to say what nelson peltz did is possible at these companies, maybe ill do the same leslie, thank you very much President Trump is headed to capitol hill today as the house plans to vote on their tax bill. The senates efforts to overhaul the tax code appear to be hitting some bumps lets bring in john harwood. Good morning lets talk about those bumps in the senate what did senator johnson have to say yesterday and is that a nail in the coffin for the senate tax map . No, its not a nail in the coffin, but ron johnson has concerns about how the senate bill treats passthroughs. He wants it differently. He wants a lower rated for passthroughs than theyre now getting. The argument from economists is that passthroughs are already treated beneficially because they are not subject to double taxation as corporations are so, it does indicate that with 52members in the senate, theyre vulnerable to defections of any kind. Susan collins also has doubts. John mccain, jeff flake, bob corker all have concerns about the amount of deficits that are created by this bill and the maneuvers that theyve come up with to try to limit the costs on paper, that is to say making the individual tax cuts temporary so you can project that you wont have that quocost later, those are not substantive changes. Those are paper changes. If youre concerned like bob corker, he said if this adds a dime to the deficit i wont vote for it you have to be concerned if he will go along with this in the end. That broader point about deficits is something we have always known would bother lots of republicans i guess well get to see today in the house whether its enough to lead to an outright defection like this other issue has led senator johnson to talk about. I dont think it will be enough today i talked last night to members and leadership aides, they are highly confident theyll have the votes. There will be some defections, maybe a dozen or so but they can afford to lose a dozen this is the first step in the process. This house bill, of course, is different from the senate. The house bill among other things does not fully eliminate the state and local Tax Deduction which is something that the senate bill does. If that comes back in conference it will be hard to pass it again in the house theres a lot yet to be worked out. The passage of this bill is a 50 50 proposition, but theyll take a step forward today in the house. Goldman sachs put the probability up to 80 . They did theyve been more bullish than others. They are not projecting as much Economic Growth impact as the sponsors of the bill would like. They did, once those changes in the senate bill were made, which by repealing the individual mandate allowed some money to be added to the bill to give to middle class taxpayers, but i think ron johnson indicates that when you got johnson, collins, those other senators i mentioned, they still have some hurdles to clear different topic we heard yesterday that Richard Cordrey will be stepping down earlier than expected. Some suggest he will run for ohio governor. You interviewed him recently is that a likely next step for him . I do. I think thats been on his mind all year this will be a Good Environment for democrats to run in in 2018. Running as the sigh who stood up to President Trump and the moderate Republican Party on issues of regulation and protection for consumers, i think thats a positive platform for a democrat to go into the election with. The only question is whether or not Richard Cordry has the dar riz ma a charisma and personal appeal to take that home and become the democratic nominee i do think thats his intention. Well hear more on the topic of tax reform from senator johnson today, thats coming up at 7 30 a. M. Eastern time on squawk box. Still ahead on Worldwide Exchange, the top trending stories. Steven mnuchin sending the internet into a frenzy with his latest photoop. Well bring you that. And the big money drama in the nfl. The latest war of words between the league and dallas wbcooys owner jerry jones. Worldwide exchange back there a couple of minutes. For your heart. 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. Tha. Oh, burnton gravy . Ie. Gotta rinse that. Nope. No way. Nada. Really . Dish issues . Throw it all in. Cascade platinum powers through even burnton gravy. Nice. Cascade. Welcome back top for our top trending stories. Kate rogers is with me da vincis portrait selling for 4 450 million scholars believed the 500yearold portrait which once belonged to three kings was destroyed until it reemerged in 2005 what is epic about this you can see a couple clips, the auction near, imagine how tense that might be when the bids are coming in at this level. Its more than auctioning off a Small Charity prize. Big job to have. The feud is growing between the nfl and Dallas Cowboys owner jerry jones. The nfl sent a letter to jones attorney yesterday which was obtained by cnbc this letter accuses jones of damaging the league. Jerry jones publicly objected to a contract extension for Roger Goodell and threatened to sue if it was approved by the come tenizatite Compensation Committee jerry jones has denied his objections are tied to the sixgame suspension of cowboys star running back eurozo e ezekl ellio elliott. Treasury secretary mnuchin and his wife making more internet news. They posed with a newly minted sheet of money with some saying they looked like bond villains the photo was snapped while they toured the u. S. Bureau of engraving and printing yesterday to see the first dollar bill with his signature i love the glare. The glare is sort of the best thing about it its a real pose with lots of jaw clenching. A little blue steel no smile coming out there. Jeff bezos admitting he is a big fan of breakfast biscuits. The amazon founder revealing that he used to eat an entire can of pills bupurry biscuits i the 90s this ended after his wife stepped in and they were married for three months i dont think he eats this still. No. Apparently he has an intense fitness workout routine. An entire can . I dont know what pillsbury biscuits are, doesnt sound healthy. Well get you a can after the show theyre great. I accept. Thank you very much. Still to come on Worldwide Exchange, lots of data earnings, fed speak on the docket well tell you what were watching when Worldwide Exchange comes back 1. 50 futures contracts . What about a dedicated service team of trading specialists . Did you say yes . Good, then its time for power e trade. The platform, price and service that gives you the edge you need. Looks like we have a couple seconds left. Lets do some card twirling twirling cards e trade. The original place to invest online. Trust 1 doctor recommended dulcolax. Use dulcolax tablets for gentle dependable relief. Suppositories for relief in minutes. And dulcoease for comfortable relief of hard stools. Dulcolax. Designed for dependable relief. Excuse me, are you aware of whats happening right now . Were facing 20 billion security events every day. Ddos campaigns, ransomware, malware attacks. Actually, we just handled all the priority threats. You did that . We did that. Really. We analyzed millions of articles and reports. We can identify threats 50 faster. You can do that . We can do that. Then do that. Can we do that . We can do that. Good morning welcome back to Worldwide Exchange. We are approaching the top of the hour the team is getting ready for squawk box. Andrew has a look at whats coming up. We have a lot coming up markets set to rebound well talk about nelson peltz and his comeback if you will, in this p g saga, if not soap opera. Well also talk about art. This remarkable da vinci painti painting there was an expectation that it might go for under what the earlier buyer paid which was 1 127 million well talk about that, and well have senator ron johnson to talk taxes and more. We have seen a bounce back in futures today yesterday the dow was down more than 130 points. This morning its up just shy of 100. Around 90 points or so lets bring in juren timmer. Good morning to you. Thank you very much for joining us in tells of the selloff weve seen, yesterday 0. 6 , late last week, is any of that justified by the data, if not in the u. S. , internationally. Has the data taken a slight turn south of late . I think the data has been good i think, you know, in the spirit of thanksgiving coming up, we should be thankful for the fact that since this reflation rally started a year and a half ago the s p is up almost 45 against the lowest volatility ever rarely do investors get more bang for the buck than they have over the last seven quarters or so were seeing Earnings Growth starting to slow not in an alarming way but slowing towards the trend line of 7 . Financial conditions which is the most important thing, are starting to tighten because the fed will raise rates in december they will probably raise rates a number more times. The market is not pricing that in and for the First Time Since the election you can see the prospect of tax cuts being priced into the earnings estimates for next year. Normally the q1 number for next week, the growth rate trends lower as we get closer to earnings season, and actually it is moving sharply higher at plus 11 . Were at the point where if the tax bill, whatever it ends up looking like, doesnt come through or to the point where the market expects, we could set the market up for disappointment theres a number of things making this market a more of a twoway street lets talk about the fed as well december rate hike doesnt seem to be a swing factor thats priced in what would prize the market next year in terms of hikes the market is pricing in december almost at 100 probability that will probably happen. After that, the fed funds market is pricing in two more hikes the fed via the dot plot is suggesting six more hikes. On top of that we know the Balance Sheet will start shrinking. Over the next three years it will shrink by 1. 1. 25 trillion thats the opposite of qe. In all likelihood that will tighten financial conditions to some degree. My sense is that the market is complacent about what the fed is going to do. It may not go for six but maybe not for two either maybe somewhere in the middle. The theme for 2018 is going to be the opposite of 2017, where we will see tighter liquidity conditions and that kind of removes the likelihood that stock triesprice also rise fastr than earnings. It is going to be a different year in that respect does that flatten the yield curve more the yield curve is being hotly debated. Its flattening and still positive but every strategist and economist could pull out the playbook saying when the curve inverts, you get a recession i dont know if that will happen this time around the curve is not inverting yet, if it were to invert it would be rising short rates and falling long rates because in the last few days the tenyear has gone down a bit whether that is a different kind of inversion or the typical inversion remains to be seen maybe theres a false positive there. Thank you very much that is it for Worldwide Exchange. Futures pointing to a 90point move higher on the dowhe last i. 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. Good morning were bouncing back this morning. Stocks pointing to a higher openings on wall street following yesterdays triple dij jitd digit decline on the dow whats happening today on twithe dow . Earnings and nelson peltz winning his proxy battle with p g. They said he didnt, right did they not know . Following a vote recount, full details are ahead. And it was the most expensive painting ever sold at auction. Well show you the da vinci that shattered art auction records. Its thursday, november 16, 2017 squawk box begins now. Live from new york where business never sleeps, this is squawk box. Good morning welcome to squawk box on cnbc. We are live from the Nasdaq Market site in times square. Im becky quick along with joe kernen and andrew ross sorkin. U. S. Equity futures seeing a bounce back after a down day yesterday in the markets yesterday twe saw the biggest declines since september 5th for all three major averages all three now are at the lowest levels of november this morning things are turning around dow futures indicated up by 88 points s p up by