Good morning and welcome to Worldwide Exchange. Im dominic chu. This morning futures are pointing to what looks like a lower open on wall street following back to back losses for all of the major indices. Russell 2000 coming off its worst day in two weeks now down more than 10 for those small caps from its recent 52 week high. And as you can see here, dow opened down about 118 points if the future losses carried through into the opening bell for regular 2r5idin trading. Nasdaq off by about 55 bond market still a focus. Around 2. 07 the two year treasury note yield covering right around 1. 91 as well lets thousanow go worldwide in the asian trade, nikkei a bit of a standout there up by with 0. 01 . And the hang seng and shanghai composite are off. And in the european trade, slightly negative sentiment carrying through but not for the german dax which is down even more than the other indices off by over 1 well get to one of the main reasons why that is happening with the german markets just ahead. The dcac off also as for the broader macro markets, oil trade right now fluctuating but currently wti to the up side slightly by one quarter of 1 , 57. 81 the last trade there. Euros right now, 1. 11. So a bit of dollar strength, euro weakness. And gold price below the 1400 mark lets talk more about the markets and Global Economy with gina sanchez, a cnbc contributor. And the macro setup ahead of fed chair jay powells speech is pretty interesting only because this is not a major selloff, but there does seem to be ratcheting down ever so slightly of risk with record highs in stocks. Youre right. And i think that the jobs number on friday or the hiring data on friday basically suggested that now you all eyes are going to be on powell. If powell comes out less dovish than the market would like, he doesnt even have to come out hawkish, i think even less dovish would actually cause the markets to rethink their positioning at the moment. The markets have been on a pretty steep bounce ever since we started to sort of anticipate dovishness by the end of the year so it will be interesting to see what happens so gina, lets speak about that positioning because it sure feels as though that more bullish jobs number on friday did shift some positioning, certainly sentiment. There is not as much of an expectation now of a mastiff rate cut later this month. So tell us through whether the market has been reset because of that jobs report well, you know, i think that the market was always sort of teetering as to whether or not that would happen. So i think that that jobs report just basically continues to tell us that it is mixed bag and that was always the case. So if you kind of walk that forward and say lets say powell comes out and he is somewhat more neutral than the market would like, you might see some of the troth cofroth come back i dont think that were necessarily any worse off than we were before the markets are still probably softening. It is just a question of whether or not they are softening quickly. And, you know, as to whether or not a rate cut is going to be imminent this year and quite frankly, look, softness in the market, that is not a good thing the economy slowing, that is not a great thing. So i think that the markets were sort of cheering about the wrong thing to start with. What does it tell you right now that we did see a bit of a pull back not just in the stock market but also in the treasury bond market as well. We are seeing yields tick higher i remember right before the july 4th holiday, we saw lows of around 1. 94 for ten year yields, were right back up into the 2. 07 this morning. So why is it that we dont see that bid for safety assets in treasuries like we would see in a downturn you know, i dont think that this is kind of a riskoff kind of move. If in fact look, one of these markets will be right and one of these markets will be wrong. You knonoknow when you get mark moving in the same direction, that doesnt happen for very long i think that you probability wi i think that you probably will see i doubt how much the fed is on tenterhooks i doubt that they will come out and say oh, well, were not as dovish as we were before because i dont think that the market would a, i dont think the market would like that, not that it matters, but i dont think that that would be great. You know, if you look sort of at what it is doing across the market, it is not just in the u. S. Stocks versus bonds. Dick also u. S. Versus emerging markets were seeing emerging markets get nervous. Markets are richly priced so why would you want to keep buying. And so where do you see the outperformance or the opportunity going in on to the last part of this year i think probably that is a hard one this is such a mess these markets. Look, i think that if you believe that markets are going to be okay, i would say emerging markets might actually be a place to go. They have been beaten down by china. There is a lot of Things Holding that down. So there is sort of more up side there than there is everywhere else everywhere else i think is more down side. Gina sanchez, thank you so much for joining us this morning. A major win for u. S. Drug makers in the legal battle with the Trump Administration kate rogers has all of those details. Good morning. A federal judge has blocked the Trump Administration from implementing a new rule requiring pharmaceutical companies to show the wholesale price of you drugs in tv ads the rule proposed by health and Human Services secretary was set to go in to if he could today. He says forcing drug makers to disclose prices could help drive down the cost of prescription drugs if the companies were embarrassed by them or worried that they would scare consumers away under the rule the list price would be shown if the drug is 35 or more for a months supply the government says ten of the most commonly advertised drugs have a list price of roughly 500 to 17,000 per month. Merck, eli lilly and amgen sued claiming that the rule could confuse consumers. Drug makers argue that list prices dont reflect the actual cost as they dont take into account discounts and rebates goi negotiated the judge says that the rule exceeds the Trump Administrations authority a spokesperson says that they are disappointed and will work with the Justice Department on the next legal steps kate, thank you very much when we come back on this show, hong kong leaders bowing to pressure from the people. And of course those mass protests over that controversial extradition bill with china. We go live to hong kong next and then chinas super mario sized problem as another Key Electronics company says it is moving some of its operations elsewhere. And later, before he takes tourists to space, Richard Branson is reportedly taking Virgin Galactic to wall street that all still ahead the ai i need . Its gotta scale across my business. Starting here, in procurement, helping us find the right suppliers. Then here in logistic, to avoid disruptions here in sales. Even here im talking about ai we can build to work. Here, predicting trends. And here, wherever our data lives and here, working with all our other ai i think were done here. Expect more from ai. Ibm watson. Tell him were flexible. Dont worry. My dutch is ok. Just ok . in dutch tell him we need this merger. in dutch its happening. just ok is not ok. Especially when it comes to your network. At t is americas best Wireless Network according to americas biggest test. Now with 5g evolution. The first step to 5g. More for your thing. Thats our thing. 5 11 a. M. New york time. A live shot there of new york city the city just starting to wake up here, but you are already here and welcome back. Here is how your money and investments are setting up this morning. Stock futures pointing to a lower open if the losses hold into regular trading for cash equities the dow jones opened down by 133, the s p down by 15. And the nasdaq off by just around 59. Hong kong leaders bending to pressure from the people calling the controversial china extradition bill officially dead sherry king is live in hong kong with the latest. And this has gotten to a point where it feels as though the protesters got exactly what they wanted is that the case it certainly looked that way when chief executive carrie lam suspended the bill as well a couple weeks ago but that doesnt seem to be the mood that im getting from the protesters here in hong kong today. This is her attempt to move forward from all the controversies, to get the city going once again remember the legislative and as well as the government functions have been practically paralyzed for weeks now. And so it is a step forward. It could be seen as a step forward for carrie lam to call this bill dead take a listen to what she had to say. The cause of all these grievances and confrontations is an exercise to amend the fugitive ordinance i have almost immediately put a stop to the aechld exercise. But there are still lingering doubts about the governments sincerity or worries whether the government will restart the process in the legislative council. So i reiterate here there is no such plan. The bill is dead so we heard the d word, dead, but what the protesters wanted to hear from her is retraction, withdrawal of the bill but we didnt really see that happen today so is this anything fundamentally different from a week ago when she said that the bill will die a natural death . I do not think that and it looks like the protesters are continuing with their rallies. In fact they were just accusing carrie lam of playing word games at this point. So it really looks like here in hong kong that this fight over semantics will continue for some time and words matter when it comes to politics. We know that very well here in the United States as well. Carrie lam the chief executive of hong kong has also been very embattled, many have called on for her resignation. Is there any sign that she could be leaning to or her political constituents pushing her towards any kind of resignation . We are not seeing any signs that signal her potential resignation or any willingness to step down and remember were talking about a position that is not really up to her because this is the position that is hand picked by the authorities in beijing and she actually addressed that point in todays press conference saying that it is not a simple matter for her to step down but she did instead ask for hong kong people to give her yet another opportunity to sit down, to listen better and she did say that she understands that there are deeply seeded problems that is making a lot of young generation here in hong kong especially unhappy. So it didnt loit doesnt look willing to step down all right thank you for that update. Still on deck, preparing for liftoff. Where biRichard Branson is lookg to take Virgin Galactic before he takes tourists to where no man has gone before. Plus switching it up, another Key Electronics giant says that it is moving some operations out of china in favor of vietnam applebees all you can eat is back. Now thats eatin good in the neighborhood. Na blend of quality probiotics. And fermented whole food botanicals, expertly curated to naturally support your gut health every day. Go with align whole food blend. From the pros in digestive health. Nintendo plans to shift this production of its popular console to vietnam from china. It would be the latest company to reelect amid the u. S. china trade war. Nintendo outsources almost all production to contractors currently in china the company says the move is aimed at diversifying manufacturing and not to escape potential u. S. Tariff hikes on products imported from china so shares in japan just about flat and shares of basf are off by about 5 the chemical goiant says that i will cut 6,000 jobs. The company blaming the weaker Global Economy and the u. S. china trade war which is weighing on the agricultural and auto sectors Richard Bransons space venture is reportedly planning to go public the move which could be announced today would be part of a deal with a special Purpose Acquisition Company or spac. Virgin galactic took its first sub orbital flight with a test passenger back in february still ahead, instragram has a plan to supposedly end online bullying, but it could come at a coast to facebook. And new numbers from the cbo orwi may surprise you when wldde exchange returns i was on the fence about changing from a manual to an electric toothbrush. But my hygienist said going electric could lead to way cleaner teeth. She said, get the one inspired by dentists, with a round brush head. Go pro with oralb. Oralbs gentle rounded brush head removes more plaque along the gum line. For cleaner teeth and healthier gums. And unlike sonicare, oralb is the First Electric toothbrush brand accepted by the ada for its effectiveness and safety. What an amazing clean ill only use an oralb oralb. Brush like a pro. 5 23 a. M. Eastern time in our Nations Capital we have a big interview coming your way from the Nations Capital later on this morning. Our own kelly evans is sitting down with larry kudlow at cnbcs Capital Exchange be sure to catch part of that interview live at 8 00 a. M. Eastern time this morning on squawk box. Sticking with washington, the white house doubling down on its push for a Citizenship Question in the 2020 census. Tracie potts is joining us from washington what can you tell us reporter you probably thought this was settled because the Supreme Court has spoken the administration said that they were printing the census without the Citizenship Question so case closed not exactly. President trump says that he is considering an executive order to include a Citizenship Question on the census despite the u. S. Supreme court ruling against it we can start the printing now and maybe do anned a deny did am so were working on a lot of things including an executive order. It does provide a pathway for getting the question on the census reporter the court said the governments reason isnt good enough the Justice Department has brought in a new team to fight cases in new york, california and maryland opponents argue the question will discourage participation in mostly democratic immigrant communities. They want to make America White again. They want to make sure that certain people are counted it is really disgraceful reporter the president is also touting his record on the environment. My administration has made it a top priority to ensure that america is among the very cleanest air and cleanest water on the planet. He is out there talking abou his Crystal Clean air and water. Were far from that. Reporter the Environmental Performance index ranks the u. S. 27th worldwide and it looks like the president has Public Opinion on his side polls are showing twothirds of americans do think that it is a valid question, that it is reasonable to ask on the census, are you a citizen. Tracie potts live in washington with the latest there. Thank you very much. Appreciate it. When we come back, investors on edge as wall street braces for another day of losses. Can the fed and chairman jay powell help turn things around then Deutsche Bank down again today as the Company Struggles to convince investors to get on board with its turnaround plan. And later, Steve Wozniak sounding the alarmoff internet privacy calling for people to, yes, abandon facebook. lbrg u s mmts his straight. After a long day of hard work. You have to do more work . vo automatically sort your expenses and save over 40 hours a month. danny every day youre nearly fried to a crisp, professionally vo you earned it, were here to make sure you get it. Quickbooks. Backing you. When you have nausea, heartburn, indigestion, upset stomach, diarrhea try new pepto liquicaps for fast relief and ultracoating. Nausea, heartburn, indigestion, upset stomach, diarrhea get powerful relief with new pepto bismol liquicaps. Futures are in the red as investors add to yesterdays losses well find out what is weighing on your money and investments straight ahead fed under fire, jay powell heads to capitol hill this week. What you can expect to hear. And Steve Wozniak says that it is time to unfriend facebook. Well bring you his comments it is tuesday, july 9, are you watching Worldwide Exchange right here on cnbc welcome back. Futures currently pointing to the down side with the dow pointing to a more than 125 point drop if the losses carry through to regular trading well have more on the overall markets coming up. But first, lets get you up to speed on the top headlines marley hall has the latest good morning. Jeffrey epstein will remain behind bars until his bail hearing next week after he was indicted on charges of sex trafficking involving underage girls. The 66yearold pleaded not guilty according to court documents, the fbi seized hundreds of lewd photographs of young looking women or girls during a senlg over the weekend at his new york city mansion and a consumer alert to tell you about. Disney is recalling its 11 inch plush toy forky due to a choking hazard the eyes can detach and pose a choking hazard for children under three. Around 80,000 of the toy story 4 dolls were sold in the u. S. It was only day two of spains famous running of the bulls and the injuries are piling up. One person gored in the back and three others treated for concussions as they tried to out run the cattle back to you. And my question is would you do it, would you run with the bulls . Not worth it. Not worth getting gored. At least that is my take i think id watch from the sidelines. Marley hall, thank you so much lets get a check on the markets. Futures pointing to a lower open today. Toyo dow would be down about 130. On the treasury side of things, a slight uptick. Ten year note yields 2. 6 the last trade there two year Government Note yields just a hair above 1. 91 . Overseas, in asian trading, a mixed board there. Nikkei in japan up by 0. 01 . And the shanghai composite down by about 0. 01 respe . And germany is off by about 1. 5. And were keeping a close eye on shares of Deutsche Bank that stock lower again this morning after the german lender announced a massive Restructuring Plan just yesterday. 18,000 workers will get the ax as part of the overhaul. Lets bring in larry mcdonald. It seems like this Deutsche Bank story has been tilting towards this kind of a possible resolution for years now so what is it about this Restructuring Plan that has people still feeling pessimistic about deutsches prospects well, it is funny not funny, it is sad 18,000 people have lost their jobs here on top of all the other jobs across wall street the last four or five maybe ten years. So very sad. But wall street analysts have been saying for almost a decade that the banks across the world have kitchen singed tk ed the qr and at the end of the day many of the banks should have gone down in 08 today, but they have been bleeding out the truth one drop at a time, he have quarter taking their marks down a little bit more and this time they are moving far more assets into a bad bank and trying to clean up the balance sheet. And this should be it. So does it mean that the kitchen sink moment is here and maybe investors could feel okay about legging into a position in doifrp ba doifrp ba Deutsche Bank shares because were not far away from historic lows again. I wouldnt recommend Deutsche Bank per se. I think they still have a lot of issues with the German GovernmentAngela Merkel is really embarrassed here this is a bank that paid their Senior Executives who have overseen this horrific Lending Program over the last decade, have been paid hundreds of millions and they have laid off the little guy about an these back office people, Senior Management has been well compensated. And i think that net net the German Government will have some issues with Deutsche Bank. Overall European Banks are 0. 3, 0. 4 times book so European Bank rts cheapest banks in the world and there have been comparisons made about a possible lehmalehmanlike moment is there a situation that you can see unfolding ining affairt would lend to the market turmoil that we saw during the financial crisis with Lehman Brothers or have Central Banks taken that kind of an outcome off the table . Our books now published in 12 languages, a colossal failure of common sense the name of the book a decade ago. And now ultimately the problem is not in the Banking System anymore, really the problem is the leverage has been transferred over the last decade to governments and corporations in terms of corporate debt so this next crisis that is coming at us that new york fed recession model is now up to 33 as of yesterday, the highest ra rate so the next crisis will come from corporate Balance Sheets, government Balance Sheets and defaults over there, not the banks. And so what is the outlook the rest of the year were seeing some signs right now of Global Economic slowdown and as those concerns play out, we are seeing some market activity is to the up side or down side for markets as we head towards 2020 well, some markets this blows me away. So since september, brillian equities on say small caps are up close to 50 . U. S. Small caps are down nine. So were seeing this transition here you want to be long and over weight especially in brazil. We stressed this in september with that election and you want to be underweight the u. S. Because the only way to get out of this global mess is if the med and the white house talk that dollar down, that will really help some of the global assets out there so overweight Global Markets and underweight the u. S. All right larry mcdonald, thank you. Futures are pointing to another day of losses ahead of jay powells testimony that happens tomorrow and then again thursday. This as President Trump continues to ramp up the pressure on the central bank saying yesterday that the fed has no idea what it is doing the latest in a growing strin of criticisms of the fed. Our fed is very, very tee structure difference to us even without a fair playing field, were winning im not happy with what hes done im not happy with the fact that they have done quantitative tightening the fed has not been of help to us at all. We dont have a fed that knows what they are doing. Joining me now is former White House Deputy press secretary under president george w. Bush, tony fratto, also a cnbc contributor tony, thank you so much for joining us you heard that string of sound over the past month. It seems that it is fairly unprecedented for a president to be going after the head of the fed in the way that he has what is it that strikes you the most about what his comments over the course of the past couple months . First of all, it is not just fairly unprecedented, it is completely unprecedented weve never had a president do this kind of thing with someone that he put in the job but also under these conditions where the macroeconomic conditions right now are pretty great. He wants to see more accommodative policy he talks about it in terms of the way that hes always measured the economy in his way which is what is the stock market doing and he said in one of those clips, you know, that the stock market would be the dow would be 10,000 points higher. That is how he measures it he would love to see the fed goose the market it is hard to say though that we need it. Inflation is very low. Job growth is strong i think that jay powell will have a challenge this week communicating the feds intentions on outlook and Interest Rates despite what the president is shouting at him from the round office. So youre a politico and you were certainly one in your former life. Is it fair to say that jay powell has become as apolitical as he can be given what is going on right now with President Trump . Yeah, no question about it. He is trying hard and being very consistent in his comments at the fmoc pressers and in previous testimony and i think that well see it again wednesday and thursday that he will be data dependent, that the fmoc is really focused on what output is looking for the economy, what Interest Rates are doing. He may do some educating on the target rate and what it means and what Inflation Expectations means. An opportunity to teach a bit. He is trying to be apolitical and show that they will do it based on what they are seeing in the economy, not from they are hearing from politics. And that is the right way to do it art laffer says he thinks the fed should not be independent and should be focused by politics and that is not a view that is widely shared on a well functioning central bank in the world today. Your former life was all about political communication. Much of your current life is about advising clients about Communications Issues as well. What exactly would fed chair jay powell be looking to expect from the people who will likely grill him in congress, what topics become the hot button issues that the fed will have to face in front of congress communicating Monetary Policy is very difficult. It is a challenge to talk about what they meanations and why th rate is meaningful to the fmoc those are difficult challenges in normal times. What he will end up having to do is explain how they are doing their job in the face of criticism of the fed and i know a lot of the members of fmoc, these are people who are really focused on their job. They are trying to do it and not be responsive just to what they are hearing from shouts from any corner, not just the white house. But that is not broadly shared there are people on the margins, market participants, i see it when im in new york, people who think that the fed is going to is to some degree being led by the bully pulpit shouting from the white house that is not a great place for the fed to be. I know chairman powell is going to try to be as consistent with h previous comments as he can, but it is not an easy job that he has. Thank you very much, tony fratto we appreciate the thoughts as always a big analyst call just crossing now on dow component 3 m. Analysts downgrading to a sector perform or more neutral rating from a prior buy or outperform the firm says after an unsettling string of guidance cuts, 3 ms reputation as a defensive high quality industrial is eroding. Rbc dropping its target price. The shares right now off by about 1 premarket on just around 6,000 shares of volume. Coming up on the show, taking on the trolls what instragram is planning to do to tackle cyber bullying. Those details coming up. Plus, why apple cofounder Steve Wozniak says it is time to unfriend facebook. Well bring you his comments when we return my mom washes the dishes. Before she puts them in the dishwasher. So what does the dishwasher do . Cascade platinum does the work for you, prewashing and removing stuckon foods, the first time. Wow, thats clean cascade platinum. If you are just waking up or heading to work, the futures are pointing lower s p off by about 15 and nasdaq down by around 60. The congressional bunch the odg out with new numbers on a bill that would raise the minimum wage to 15. Kate rogers is here with more. This is something that you watch closely, impact of minimum wage on Small Business. And restaurants, across my coverage areas, this certainly matters. Two big headline numbers here. The cbo says a 15 per hour minimum wage would boost pay for 17 Million People, but it would cost 1. 3 Million People to lose their jobs earlier this year House Democrats introduced a bill that would raise the minimum wage to 15 per hour over the next five years. The current federal minimum wage stands at just 7. A 7. 25. So interesting numbers here. And of course weve heard from a few groups the National RestaurantAssociation Says this would crush the industry and that majority of job be losses would wind up hitting women. And so what ive heard and this is just to provide many sides of the story as we can, we heard about the Unemployment Rate in certain cities like seattle that are in the efforts of pushing up their minimum wage, san francisco, they say the Unemployment Rates there are not anywhere near bad because they have pushed up minimum wages. So how does the industry or other folks who propone these moves justify that given that we have not seen unemployment on the rise in certain jurisdictions . For Small Business in particular, they say a blanket 15 minimum wage doesnt work in the middle of the country for example. So when you talk about cities on the coast, the cost of living is higher, seattle obviously had a huge influx of job growth from Companies Like starbucks, amazon i dont know that that is the same case that youd see in the middle of the country. One more point, optimism has been on the way up well hear about the nfib next hour, see where that number falls. But they are staying that this could stall job growth there and end that hot streak that Small Business has been on and one more point here through all of your reporting, have you come across more anecdotes about the idea that small and medium sized businesses are not finding enough people to be able to hire to fill open spots yeah, certainly one thing we talked about last week was teen summer jobs. In massachusetts for example they are looking at a teen minimum wage because right now Small Businesses dont necessarily want to pay teen workers that will be there just for the summer this same minimum wage as that number goes up to 12 an hour in that state that they would pay workers that will be there all year long. Skilled labor has been a top issue for Small Businesses for more than half of the year that continues to be a really big concern for them so minimum wage factors into all of that. And it is time for the top trending stories as well and i know that you have your eyes on all of these things. A few good ones here. The internet still buzzing about images out of the Nations Capital yesterday. Heavy rains in washington, d. C. Leading to flash flooding. No serious injuries thankfully were reported, though plenty of drivers had to be rescued from their cars this is amazing this is washington, d. C. Yeah. Roads turning into rivers with flooding around national monuments. Water cascading into the metro even the white house got some flooding i think in the basement that is amazing that is washington, d. C. And we didnt see anything really that bad up in the new york area. No, i think that there was a little drizzle in the morning. We managed to definitely escape that but look at that Pretty Amazing story for sure and this is interesting too instragram introducing a new feature that will notify users when a comment that they write could be considered offensive. The social media site is testing a feature that could hide comments from others without letting them know that they have been muted the head of instragram saying that the company is willing to make decisions that mean people use instragram less if it keeps mo people more safe looking to make more moves that give users the idea that they are trying to make it a more safe environment do you want instragram filtering your comments . Here is a question. Do you would you want to see the filters . Im on a social media detox good for you. How do you feel about that i missed instragram for a couple days and i dont miss it. Its been a few you weeks. Check facebook now and then because i do have a work account so i try to post things on there. But what about you, what do you think . It would be a great doctoral thesis i struggle with whether or not id be happier i know kelly evans has been off social media for a while and she seems to enjoy the fact shes not on there and i think when you are in social situations, you are not thinking about taking a picture of your food or getting a group picture, whatever it may be that so many people do to post to their accounts you are just enjoying the interacti interaction. But i didnt give up twitter and Steve Wozniak is out for a big warning. There are many different kinds of people. Some the benefits of facebook are quoort t worth the loss of privacy. But my recommendation is figure out a way to get off facebook. Wozniak also saying while he worries about the privacy invasions by big tech, he does not think that there is anything we can do to stop it im very conscientious of the information that i volunteer on social media. As am i there are certain things that i dont put on twitter but put on facebook or instragram, and certain things that i put on instagram that i dont put on twitter. So you wonder whether people will gravitate more to the idea that they will become more sophisticated about the types of social interaction i know im more guarded about what i put on line but what i struggle with is connecting with people that i dont see often. And if you give up facebook, you do lose the option of seeing family photos, people who live far away or friends that you went to college with that you dont see all the sometime i think that is the interaction that id be missing. But can you live without it, an individual call for sure and you are not off twitter yet. Neither am i i find that the only thing that i really use twitter for is to interact with our viewers and fan base and even those who are critics of us, it gives us a chance to have that meaningful interaction. So that is something that i still find useful. Kate rogers, thank you so much in supports, Major League Baseball had its annual home run derby in cleveland last night. P runner up guerrero jr. Hit 91, but fell short in the championship round where rookie pete alonzo took home the crown hitting 23 home runs in that final round in and of itself, a spectac spectacle. Congratulations, mr. Alonzo. Coming up, what every investor needs to focus on when jay powell heads to capitol hill later this week. Plus blasting off, what british billionaire Richard Branson reportedly just did that upped the ante in the space race take prilosec otc and take control of heartburn. So you dont have to stash antacids here. Here. Or, here. Kick your antacid habit with prilosec otc. One pill a day, 24 hours, zero heartburn. Time for the headlines that you need in 60 seconds a big win for big phrma. A judge blocked a rule that would force fapharmaceutical companies to include pricing in their ads. And a bill in honk con is dead according to their leader million flooded the streets in opposition of the measure. And Richard Bransons space venture is reportedly planning to go public the wall street journal says the move would be part of a deal with a special Purpose Acquisition Company or spac. Virgin galactic took first sub orbital flight back in february. Futures are pointing to a lower open joining me is jeff kilburg from kkm financial. Jeff, we are still near record highs in the stock market. So does this mean, does this pull back mean that the fed needs to cut Interest Rates in order for the markets to keep going higher good morning, dom i dont think that the fed needs to cut i think the fed will be demanded by the stock market to cut rates. And they will use the fed watch tool, a 95 probability that we will see a rate cut. But it is interesting to see chairman powell talk on utilizing an ounounce of prevention, a quote from benjamin franklin. Interestingly enough, franklin utilized to prevent fighters in philadelphia and so chairman foul see a fire on the horizon i dont think so i think were in a pretty good spot were 1 away from alltime high however we are getting this rate cut, it is coming. So why . If the economy is doing okay, unemployment still sits at 50 year lows, we have a gdp still growing modestly, everybody is seeing modest inflation, is there a reason why that the fed needs to make that kind of a cut . Where i put back a little bit is the modest inflation. The fed have always had a dual mandate. Unemployment and inflation but the last mandate which they have kind of adopted is where the s p 500 level is but back to inflation, they are not seeing inflation and more importantly, the shape of the curve just yesterday three yearsing a go yesterday the ten year note was trading 1. 36 , lowest in history. So i think right now they are concerned that they did move the Interest Rates from the front end of the curve so they want to bring that curve down a bit, give banks a chance there. They want to have a soft pillow on the tarmac. We talk about raising rates and were not in the raising rates environment even though they want to be they are concerned about the shape of the curve and that will be the trajectory of the economy the rest of the year and why are we seeing Interest Rates on the rise at least term . A lot of people had reposition and if you are looking at the tlt, proxy for the long end of the curve, that is so far away from its 50 day moving average, so i think that you will see the ten year note as long as we dont get any surprise out of the ten fed speakers this week and the q a out of chairman powell, i think that you will see the ten year drift a little higher here. Because we always talk about on a chart you have to have a back. Need a breather going into the rest of the july jeff kilburg, thank you and that does it here for Worldwide Exchange. Squawk box picks up coverage and futures right now point to a 127 point drop on the dow. Good morning global stocks under pressure the jobs number just too good as we a wait this mornings testimony or tomorrows testimony from fed chair jay powell well get you ready for the capitol hill grill a big win for drug makers. A junk has blocked a rule that would have forced phrma companies to display drug prices in tv ads. Details are straight ahead and earnings from pepsico expected to hit any minute now well bring you the numbers and instant reaction from an analyst. It is tuesday, july 9, 2019 and squawk box begins right now. Live from new york where business never sleeps, this is squawk box. Good morning. Welcome to squawk box. Were live at the Nasdaq Market site im melissa lee along with joe occur in an and mike santoli becky and andrew are on assignment take a check on u. S. Futures right now looks like a down opening across the board dow indicated lower 129, s p looking to be down 14, nasdaq down 55. Of course building on the losses in yesterdays session overnight in asia, a negative day across the board hang seng down by three quarters of a percent nikkei managing to eek out a 0. 01 gain. In europe, being weighed down by Deutsche Bank. Red arrows across europe and treasury yields, since that jobs report, holding on to 92 level on the ten year and there we are again, 2. 068 speaking of hong kong, leader