And im wilfred frost. Good morning from me as well. Lets bring you up to speed on the market. Action a very strong rally yesterday. The nasdaq up over 2 . Two others up 1 as well. The dow called higher by 76 points. S p by 10, nasdaq by 24. Just high of half of a percent for most of these indices. Of course, yesterdays rallies very strong, but not on the high of the of volumes. Nonetheless, quite surprising to see it particularly on the day when the dollar was strong as well. Of course, stronger data pushing back on expectations that june and july are very much in play for the fed. Lets have a look at oil prices. They are part of the rally as well. We saw oil up about a percent. Were up another percent and a quarter today. 49. 2 for wti, close to the 50 mark. Lets get a check at Global Markets following overnight from asia. The nikkei shrugging off sort of disappointing news from individual stock owners. 1. 6 . The weaker yen on the dollar has been helping japan to rebound. Toyota had a nice overnight as well. Hong kong a star overnight finishing up 3 . Shanghai closed lower by 0. 23 . And china fixed its occurri rir currency in a year. Resilience in Global Equities overnight especially in china. Notable, that china yuan. And the german dax up one 1 gains. Europe with 50 a barrel. And the u. S. Recession, the strength of the banks and technologies are reasserting themselves. The lead will be one to watch. And germany was up over 2 yesterday so really extraordinarily strong rally there. I think a big factor is because the u. S. Dollar hash strong including against universithe e. And thats who eased pressures on germany and of course wider Companies Across europe. And as you say, i think over the course of five months, though, markets have got more happy that the chinese authorities are in control of things that theyre actually heightening things across the currency. So this is not the most important. On top of that, of course, the recent move has been more about Dollar Strength as opposed to a lot of financing or escaping in china. Right. The outflows and scary Macro Economic picture. Lets go to broader markets because we did see a decent move. Closer to 1. 9 on the tenyear. Yesterday, were shy of that now, 1. 88. The dollar, we cant underplay it enough yesterday, strong stock rally in the face of a strong dollar. In the face of more talk of a rate hike. Of course, previously, weve been having to rely on more easing talk for markets to rally. The euro, 1. 1142, has some reprieve. Gold prices recently, weaknesses by half a percent. Dollar is strong, flip side, gold gets hit. Jim bullard said a june hike isnt set in stone. But in an interview with cnbc, bullard did argue that market data suggests its time to pull the trigger. Listen. Obviously, we try to be datadependent, i dont think theres any reason to prejudge the june meeting at this point. We can wait until we get to the meeting, see what the data say and try to make a good decision there. I think on the issue of press conferences we have made many moves over the years, without press conferences. So, i think we could make a move without a press conference in this circumstance. Keep in mind, no press conference at the july meeting. Yes, in june, opening up the suggestion as other regional fed president s this week have for two to three rate hikes this year. As for the risk of brexit and the chance that the uk vote could give the fed pause in its june meeting. Bullard says he doesnt consider it it quite the Global Market event. But he does note that his view could be, quote, an outlier. Its something that the fed is mixed about whether its going to keep us going to june. The bottom line while investors and the fed are increasingly getting on the same page about an Interest Rate hike. The Federal Reserve itself is getting on the same page. Weve heard a lot of the comments echoing themselves. Were not seeing sort of the discord that we saw earlier in the year internally from the Federal Reserve. But none of this matters until janet yellen speaks on friday. Shes speaking at harvard. Shes the most important. Shes the core of the fed. Dudley, the key ally of the new york fed echoed some of these other comments that theyre looking like june could be a strong possibility as the economy improves. Absolutely, shes the one to focus on for friday. Down the line capitals jeff goodluck says stocks feel like a short squeeze. As for the fed, he still puts the odds of a june hike at 50 50. A goodo offset to the rally yesterday. Apart from yesterday we havent been rangebound. Yesterday was the outlier for me. Its sort what hes been saying on equities. It is. Hes been right in saying that the strength of bonds will be persistent and treasuries. It will be interesting to see if he changes it. Hpe announcing plans to spin off most of its technology operations. The business will merge with Computer Sciences. This is an 8. 5 billion deal. Shares of both companies up sharply reacting nicely to that news. The transaction comes less than a year after the break job of hewlettpackard into hpe and hp inc. Theyll now own shares of both hpe and both companies. Meg whitman on the Conference Call had this to say about it last night. For the remaining hewlettpackard enterprise, this transaction contains significant value by unlocking a faster growing, higher margin and stronger cash flow business. Hpe will now have 33 billion in annual revenue and will focus on Software Generation and infrastructure that generates a world class storage and infrastructure as well as our helium Cloud Platform and software assets. Moump from meg whitman joining squawk on the street later this morning. The only thing i would say focus when it comes to technology. Hhp goes from one to three in under two years. Investors love it. Nice bounce in share prices. The data pool is challenged today. And it may focus on a trio of fed speakers making the rounds. And weve got harker and kashkari and kaplan speaking at various times throughout the day. Tiffany reports emption before the bell. Hp, Williams Sonoma and lions gate after the close. Mitsubishi motors restating its Financial Results for the past year to reflect a special loss of nearly 175 million. Thats related to its fuel manipulation scandal. Monsanto rejecting a bayer 62 billion takeover saying the bid was too low. But the firm is open to conversations. Dicomindustry is looking for better than expected outlook. Up 11 . In other corporate news, mcdonalds is one to watch holding its annual Shareholder Meeting it comes as the fast food giant is experiencing a turnaround in business. Landon dowdy joins us with three things to watch in mcdonalds. Mcdonalds top executives will go into shareholders at the headquarters in illinois. Shares up 25 in the past year. Stores have turned around and theyre up 6. 2 globally. And 5. 4 in the u. S. In the first quarter. The launch of allday breakfast has been a big driver for that sales increase. David palmer of rbc capital saying it will be the gift that keeps giving through 2017. But he wants to hear more about allb allday breakfast. And raising the wage to 10, labor groups say the change hasnt been enough. The fight for 15 is planning a massive protest. Back to you. Landon, thank you for that. Its so unamerican of you. I know. I used to be once a month type. You cant go regularly. Wait until the garlic fries come. Hm, questionable. Youll have to try that with me. The best story of the morning, the report surfacing that paypal cofounder peter thiel funded the 140 million lawsuit that hulk hogan won against gawker. Its not immediately clear in the Silicon Valley venture capitalist, how he came to be involved with hogan. Obviously, the story getting a lot of buzz. According to reports, teele had a bone to pick with gawker. Hes an inver, invested earlier in facebook. Hulk hogan won. Unclear what they invested. Its not uncommon. They just negotiate a percentage of the wins, if they believe it, why fought. Its a legal im sure its legal to invest in what happened. Morally, is that the right thing . Anyway, we wont go into the details of that. Back to the market, our facebook and twitter question we saw a big rally yesterday. We also saw with it strong dollar and rate hike talk. Is this cocktail sustainable . Way in here. Its interesting to see strong stocks all in one way. It didnt stop the ral little yesterday. Coming up the breakthrough deal for greece overnight. Details on another late night of talks in brussels next. Plus, citis global held of g 10 Foreign Exchange joins us. How will the dollar go from here and what will it mean for equity, next. But first, best wishes to time warner executive jeff bewkes who turns 62 today. Very happy birthday. Were back in a couple minutes. Breaking news this morning, eurozone leaders are hailing what theyre calling a breakthrough deal with greece again. Talks lasting into the early hours today, told euro Group Ministers agreeing to release 10. 3 billion euros in new funds for greece in return for fiscal reform. The eurozone offering up its debt release in 2018 if necessary to meet its criteria on payments. Putting all of this together the imf is willing to once again join the eurozone in funding the bailout of greece. The greek banking index jumping more than 3 harg that deal. The yield dropping to a sixmonth low, below 7 . Slightly above there this morning but clearly this is being taken as good news. The imf caved a bit. They wanted immediate consideration of debt relief. They did not get that. Its go to be put off a few years. But if you think about it the eurozone ministers are in top shape. Theyre heading into a referendum in the uk whether to stay in the eu. They have to so solidarity going into that. Otherwise, we would have had two dramas this summer going into the brink of a brexit. They werent go together let that happen. Interestingly right as you say the imf caved a little bit almost some could argue to make sure the collective kind of voice of people that want the uk referendum vote to remain, its lets just not cause an extra fuss over it. We dont want to put more fuel on the fire. A deal once again, late night. Familiar. Not sold on greeces issues, of course. And other news, were watching the situation in france. The french oil Industry Federation said the country has been forced to tap its oil reserves this comes as a labor deputy forces france refineries to halt. And protests at thousands of petro stations run dry. At the market, its been the eye of the storm lately. The strong dollar reasserting itself. Not so much this morning. The euro is say bit strong on the back of that greek resolution. Temporary resolution. It is strong against the japanese yen. Above 1. 10. The pound is flat. But its rallying as the polls have increasingly shown that britain may remain in the e up. Joining inin ining us to talk, gains and strengthened all day yesterday, steven, the difference is Global Equities seem to be okay with it, is that true . And will it continue . Well, i think its okay for now, i think what really sparked the equity rally was the strong housing numbers that we had had yesterday. They really took off after they came out. And the message i think that theyre sending is that the markets are more afraid of having a really weak subpar u. S. Recovery or growth, than they are of having the fed move two times this year. Steve, thats a lost progress, isnt it . In the beginning of the year, the reason markets were so weak is because we thought we were going to have lots of hikes. Not because necessarily we thought the economy was too soft . Well the economy started softening at the beginning of the year. I think our standards have changed, right . At the beginning of the years, lots of hikes or four hikes in the year, now if we get too strong, for the market, moreover in the out years, 2017 and 2018, were really not placing in more than one hike at this stage. We think that the markets are kind of reassured at the growth and hoping theyll get top line support for equity valuations. The only thing thats different between now and january is that the market seems to be okay with the weakening of the chinese currency. Overnight, a report that china sat at its lowest fixing in years over the u. S. Dollar. And the comp barely closed lower. If you take a look, weve done studies on this if you take a look at the reaction of cny and cnh, the much more modest than what we saw in august of last year and december and january of this year. I think china is sending a signal that theyre not the ones to destabilize the Financial Markets this time of year. Very quickly, how much stronger does the dollar get this year . I think they still have a couple percent more. Probably more against the yen than against the euro. Id say we could see another 5 against the euro maybe. Maybe a bit more against the yen. Steven, thanks so much for joining us this morning. Steven englander of citi. Still to come, todays top political stories including antitrump protests turning invite lea violent. Today, the weather channels paul good lowe. Good morning, thanks, wilfred. If youve been wanting the warm weather it is here. 90, the first 90 of the year in new york city. Kind of chilly last week, today, boom, 90. Youll hit 90 before atlanta does so far this season. 88, one of the warmest in atlanta today. Otherwise, a lot of red here in the middle of the country for thunderstorms and tornadoes again from the twin cities and even chicago, youll see late day thunderstorms. Some of those could be on the strong side. Otherwise, youll have snow coming down in areas of montana and wyoming. Yellowstone seeing snow showers again today its like winter does not want to quit. Otherwise, scattered thunderstorms popping up across the west even mountain snow across the southern sierra. We need that. Cooler as well. L. A. Only 67 degrees. Hey, were back with more Worldwide Exchange after this. To political news, Hillary Clinton is opening up a new line of taxi on donald trump accusing of him looking at dollar signs. Trump is firing his own personal shots. Tracie potts from washington with the latest. With all of that happening we also saw protests again outside of a trump rally last night. A trump spokesman calling them thugs and punks. A lot of these people were carrying mexican flags saying they were offended that donald trump would bring his antiimmigration message to new mexico. Protesters outside of Donald Trumps albuquerque valley throwing rocks at police in the dark. Several officers were treated. They responded with smoke canisters. Reporter inside, trump responded to Hillary Clintons claim that he was rooting for the housing crisis that destroyed millions of americans. Thats what im supposed to do. Im in business. Why on earth would elect somebody president that actually voted for the collapse of the Mortgage Market . Reporter later theyre making that same point. Some people are just allergic to the facts. Reporter as Bernie Sanders told california, clinton cant be tough on wall street either. You cant take their money and take them on. Reporter all three candidates are in california today. Sanders the underdog is pushing to win there june 7th. California, its a long way to washington. Reporter overnight, donald trump picked up more delegates in Washington States republican primary. Now, theyll be counting up the final votes from Washington State this morning to award the rest of the delegates but the way it stands right now, donald trump is about 40 delegates away from securing this nomination. Tracie, thank you for that update from washington. Still to come here on Worldwide Exchange, this mornings top stories. A live report from youre on that breakthrough greek deal we had overnight. And the story everyone is talking about today, why paypal cofounder peter thiel is backing hulk hogan. Midway dak to normandy medina ridge the chosin reservoir these are places history will never forget but more important are the faces we will always remember. Good morning. Ready for a rally, green arrows around the world right now. New this morning, microsoft is cutting nearly 2,000 jobs in its smartphone unit. And check this out, Paul Mccartney is inviting fans in this studio. You wont even have to leave the comfort of your own home. Its wednesday, may 25th, 2016. Youre watching Worldwide Exchange on cnbc. Good morning, welcome back to Worldwide Exchange here on cnbc. Im sara eisen. And im wilfred frost, go big or go home. Thats certainly what markets were doing yesterday. 2 rally for the nasdaq. Best day for the s p since march 11th. It looks like the Party Continues this morning. U. S. Equity futures pointsing to a higher start. Dow futures up 76 points or so. S p futures up a little more than 10 points. Nasdaq up 26. Tech again in the spot light. It was a big leader in yesterdays session along with financials. Europe early action is continuing. Were really seeing a global stock market rally this morning. Its on the back of Stronger Oil Prices and of course strength on the back of u. S. Equity markets led by Home Builders and tech. German dax up by more than 1. 3 . 1 across the continent. The euro has been weakening in recent sessions. Could be a lift for german exporters and european exporters. And also a breakthrough deal in greece. Well get to that. Quickly show you the action in asia overnight it was also marked by gains especially in japan and especially in hong kong which grows higher by 2. 7 . Toyota was a notable winner in japans nikkei session after announcing that partnership with uber. Shanghai closed lower. Which was resilience given the fact that the chinese currency is now at the weakest level against the dollar in three months after the Chinese Government or central bank fixed at the lowest since 2011. That would have been spooky early in the year. It is considered okay for the markets now as investors everywhere are warming up to this idea that the fed could move sooner than later and that might not be such a bad thing because the u. S. Economy might be able to handle it. Look at housing data yesterday. Thats the big thing on the chinese strength, more dollar driven than the weakness side of things. Thats a big takeaway. Dollar strength yesterday and markets managed to shrug it off. Its not just the story domestically that we saw that. Europe very strong in the last 48 hours. Asia also strong. Yes, theres some weaker euro reasons there, for example. But when we were talking earlier, it was spooking equity markets around the world. Weve got 4 of gains for the german dax. Very strong indeed. Maybe the economy can handle it globally and in the u. S. Lets have a look at Global Markets its not just the dollar. Oil was strong yesterday. 49. Pretty much bang on for brent and wti this morning. A bit of movement in the tenyear note 1. 9 . Picking up just below that, 1. 87. The dollar index up 1. 4 . Not significant happening. The story of recent has been Dollar Strength as opposed to weakness. Lets have a look at gold price. At 1221. Eurozone dealers are talking about deals. Julia chatterling has the story. Is the big story here a bit of uptake . Well, thats a question. The germans here have to concede to a greater extent to even offer some kind of future debt relief. So theres good news there. I think in the short term as well. The positive here is that greece now marks 10 billion uros worth of cash which means hopefully were not going to see the turbulence if youll remember with the tenyear bond in the summer of last year. So thats a positive. But Going Forward when are they actually going to get some form of debt relief . Well, theyre not going to get it until after the end of the current program. I dont have to remind anybody out there just how likely is it that greece manages to finish a program here. So thats one thing. No one has agreed to anything, remember. These are broad principles. Ill just wrap up by reminding you how many times greece has been promised debt relief. I can till because i was there. November 2011, july 2015 and again for 2018. Guys, i think its a case of whats in. And now, greece down since november of last year so some optimism that theres lighting at the end of the party for greece. But devil always in the detail. That gets us past spain and brexit. I think thats the bigger issue here. Julia, thank you for the update on greece. In corporate news, microsoft is cutting 1850 jobs in its smartphone unit. Most of those positions are actually in finland. This as sales of the device continue to decline. Remember, the tech giants acquired the business from nokia a couple years ago. Microsoft taking a current charge of this of 950 million. Hulert pack area enterprise announcing plans to spin off most of its Technology Services operations. Business will merge with Computer Sciences in an 8. 5 billion deal. Shares of both companies up sharply on the news, as you can see. The transaction comes less than a year after the breakup of hewlettpackard. Computer science has been involved. Hpe will own shares of both hp and the combined company. Ceo meg whitman will join david faber on squawk on the street later this morning. Toyota is hailing a ride with uber. Investing an unspecified amount in the company. Report says its under 100 million, though. Toyota and uber will now offer vehicles to drivers through a new leasing program. Theyll be able to cover their Monthly Payment use uber earnings. The companies will also share information on research and techniqu technology. Yet another deal with a Ride Sharing Company and a car company. There are a lot of toyotas on uber. The data pool is shallow, so we focus on a trio of fed speakers. Philly fred patrick harker, minneapolis fed president Neel Kashkari and dallas fed president kaplan speaking. Hp inc. , Williams Sonoma and lions gate out after the close. Tiffany, if you want an example of how its hurting corporate america. Tiffany highly exposed. Not just overseas in markets like japan but in u. S. Flagship stores where there are so many tourists just not spending very much. Tiffany is considered high end . Very high end. Luxury rea little. The dow and s p coming off the best days since march 11th. Joining us now to discuss it further, senior vice president. Thank you for joining us. Weve gault a strong dollar, those two usually arent correlated together and also strong equities in the nation of the stronger dollar. This is kind of a great cocktail. Well, i think we have tailwinds at long last in the Global Company and particularly the u. S. Economy. We think were entering a period where three weights that held down Economic Growth have been lifted. Those three weights are . So we start with, of course, the manufacturing contraction in the u. S. Has come to end. Are you sure about that. Richmond fed was negative yesterday. Regional feds missing which could suggests its never a smart move. But the pattern of consistently below 50 on ism has certainly been broken on two reads above. Were thought say its at the bottom recovery, roaring back, but all of those downward pressures, its behind us. I think thats consistent with what were seeing from the fed. Thats number one. Number two, energy and the dollar. And those can continue at the same pace together . Well, we dont need to see a continuation of Higher Energy prices. But the fact that weve got stabilization, we also tonight think the dollar is going to continue to fall. We just dont think were going to have the repeat of last year soaring higher dollar. That was a tremendous impediment to earnings. Your tiffany story is one example of that. So safe to go back in, but go back in where . Do you go to the defensive, the yield payers . Or the more cyclically financials . We ejected a read asset class which is reads and mlps combined. Not because theyre not necessarily go to be the strongest performer but we think they have the best risk adjusted recurrence partially because of dividend distributions. Whats your expectation for rate hikes because that influences peoples sector choices as well . Weve been very steady, two rate hikes this year. Starting in june . We dont think its significant whether its a june or july start. We think it is likely this summer, well sneak one more in towards the back end of the year. I wonder if the recent m a has added fuel to the fire . The 62 billions offer from monsanto and may get even higher not completed yet. Not completed but going back and asking for a bigger offer. Youve also got this hpe deal out of nowhere last night, splitting now . Yeah, i think whats interesting about all of this, this has been going on for some time. But its really a continuation of trend of businesses looking for ways to grow. To some degree that reflects some confidence in the future. Is that a good thing for the market and would you be investing around these and which industries are responsible . Its not one of our drivers in portfolios. Jeff, thank you for joining us. Now, to our top trending stories, and this one is on top of that list. Reports say yesterday a paypal cofounder peter thiel funds the 140 million lawsuit that hulk hogan won against gawker founder. Confirming the report it wasnt immediately clear that the Silicon Valley capitalist is the sole funder of the case but how he became involved with hogan is a great story. A great investment for peter thiel, if you go back and look at it it looks like hes had a checkered feelings about gawker. And Paul Mccartney is inviting fans into the studio. The legendary musician is the subject of six vr documentaries. A retrospective look at his career. Its out on the 10th of june. It is rolled out this week displays a handful of songs on a 360 form at and on facebooks obvious rift. Samsung and other devices. Of course, Paul Mccartney. Hes a legend. It looks like nordstrom is giving michael kors the boot. Almost half the stores have stopped selling his hand bags. This is to phase out the brand by the end of the year this is from sources telling only lifts that michael kors is the stores number one returned handbag. You there go. I usually keep the ones i bought. Other people return theirs. Still to come in todays must reads including a memo to democrats to stop panicking over polls. And this day in 1977, star wars opened in theaters. The third highest grossing movie of all time id avatar and gone with the wind. Thats all we needed another star wars holiday. Well be right back. In her k yup, shes gone noseblind. She thinks it smells fine, but her guests smell this. Ding, flies, meow febreze air effects heavy duty has up to. Two times the odoreliminating power to. Remove odors youve done noseblind to [inhales] mmm. Use febreze air effects, till its fresh and try febreze small spaces. To continuously eliminate up to two times the odors. For 30 days febreze small spaces and air effects, two more ways. [inhale exhale mnemonic] to breathe happy. Igoing to clean betteran electthan a manual. Was he said sure. But dont get just any one. Get one inspired by dentists, with a round brush head. Go pro with oralb. Oralbs rounded brush head cups your teeth to break up plaque and rotates to sweep it away. And oralb delivers a clinically proven superior clean versus sonicare diamondclean. My mouth feels super clean oralb. Know youre getting a superior clean. Im never going back to a manual brush. Welcome back to Worldwide Exchange. To todays must read stories catching our stongs. My picks in the wall street journal titled clinton is still the favorite. Of course, this comes from recent polls showing headtohead polls between trump and clinton slightly narrowing from where they were before. William a. Galston writes home to pollobsessed democrats dont freak out. Hillary clinton remains a strong favorite to defeat donald trump in november. Mrs. Clinton enjoys structural advantage in demography, Party Registration and electoral college. Its interesting to focus on what the betting market says. Thats not budged. Shes remains a clear favorite. The other thing i point out galston at the Brooks Institute was a aformer adviser to bill clinton. Hes making the case by a democrat for a democrat. But still, hes telli ing democrats not to worry. Yeah. My pick is foreign policy. It doesnt seem to be resonating but the a big deal in our world. Usa today, writing alphabet, apple, Cisco Systems microsoft and oracle, collectively held 504 billion in cash at the end of the last year. Its something weve known, nothing new about this. Eyeopening figures in tellers of cash by u. S. Conversations on nothing being done about it which we still have 30 tax rate which make tgs it uncompetitive bring it back to the u. S. On the campaign trail, all you hear with the rhetoric, corporations are skirting their taxes. Theyre not paying their fair share of taxes. Corporate tax reform not an issue that gets through. No something as we have said lots of time, it will be topping the agenda. If you do talk to ceos, this is number one. We are approaching the top of the hour. That means the team is getting ready for squawk box in new york. Joe kernin takes a look at whats coming up. Good morning, joe. Two days in a row. What . Giving you the thumbs up. Maybe George Stephanopoulos is going to write the next piece on hillarys chances, you know. Hes so tough, man, really asks those tough questions of hillary. I agree, though, i think that the campaign should just coast. Not worry about Terry Mcauliffe or any of this stuff. I would just coast from here on out. A shooin. Joe, i was talking to one supporter of clinton he actually said the biggest threat she has for sanders continuing is energy. She needs to have holiday and relax. Her biggest threat is herself, wilfred. You havent lived in this country for the past 20 years. Lets not go there. Lets not go there. You could say the same thing about trump. Both sides. Derek jeter is going to be on on a day where it looks like we may have a winning session again. When is the last time we had two decent days in a row. Pretty good day yesterday. Oil is. You. Dollar continues to get stronger, down 1. 11 again on the euro. But maybe this is the time where, you know the sell and may trade maybe at it is a little bit over a bounce perhaps. Well be talking about that. As far as other guests, its kind of an interesting lineup. Weve got protrump and proclinton people coming on. What are we going to do for the next five months . Its going to get heated all the way around. But as always, guys, im going to stay up here. Of course. You know where this is . Heres the fray. This is the fray down here. And im up here, above the fray. Well, joe, naturally well think of you. Naturally, as a tool man, i guess i could argue im there as well. Youre up above the fray. Im going to keep you above the fray. I am watching you sara, the last two days, you are awesome. Ill take a complement from you any day. Joe kernin coming up on squawk box. Still to come here on Worldwide Exchange, stocks in rally mode, is fed speculation behind the moves . Drew matus will weigh in with his views coming up next. You get use to pet odors in your car. You think it smells fine, but your passengers smell this. {ding} eliminate odors youve gone nose blind too, for up to 30 days with the febreze car vent clip. Wow, it smells good in here. So you and your passengers can breathe happy. Looktry align probiotic. Our digestive system . For a nonstop, sweet treat goodness, hold on to your tiara kind of day. Live 24 7. With 24 7 digestive support. Try align, the 1 ge recommended probiotic. Welcome back to Worldwide Exchange. After strong rally, the best day for the s p since midmarch, march 11th. S p pointing to another day, dow futures up 88 points. And nasdaq up 29. Tech the real star in session yesterday. Joining us now is deputy chief economist, managing director at ubs, you sit on the trading floor. How much of this rally is built on purely economical data showing that we can withstand a 45basis point Interest Rate hike . Its a huge move. I know if people look at the spread between 2s and 10s in yield theyre becoming a little more nervous. One of the things i like to look at is gold relative to the s p. Seeing whether people want to be in higher yielding assets. Or they want to be in kind of real assets. Do they have more faith in the fed . If they have more faith in the fed the s p should do better than gold. I use that as a proxy for fed credibility. Thats been rising lately. I dont think thats a mistake. Is there a Global Economy factor in it as well . Things seem to be improving elsewhere. No news is good news. We havent had any news, therefore, its good. I think it is true. Things have calmed down globally. That means the u. S. And Federal Reserve can focus on whats going on here. The news is pretty good. The last guest was talking about the stabilization of manufacturing. I know weve had regional issues. If you look at customer inventory levels. People are reporting inventory levels too low. The isn numbers should actually hold in above 50. That will give people even more faith. Of course, you have the labor market which kind of keeps chugging along. The problem with this theory is, we get on one narrative, all of a sudden it changes on a dime. I think calling it a jekyll and hyde economy. We get a blowout number like yesterdays home sales. Then a disappointing jobs report. And then it makes us question everything. What happens when we get a report that disappoints . Im not smart enough or fast enough to change my mind that frequently. You know ive been optimistic for a while now. Unless you see claims pick up and job growth stall, at the same time, i cant imagine anything is wrong with the economy. If claims just pick up on their own, maybe people are finally respond to low productivity in the United States and shedding lowend workers and trying to pick up new workers. If job growth on its own slows and you dont see any pickup in claims what that tells you were rung out of workers to hire. Claims are very low. Job growth seems to be slowing which tells you things are tighter in the market which should be good for wages Going Forward. Weve seen the u. S. Dollar strengthen during the course of this month. How much is priced in the dollar moves over the last couple weeks . Is it the hike in june and july with pricing are, and when we get there, if we get it do we see a big rally in the dollar . Our fx people are sanguine on the dollar. Theyre thinking were seeing what were going to see. The big story is who goes first. The one story that hasnt changed, the u. S. Is going first. And other people will follow it at varying degrees. Thats been a constant. Durable goods out on thursday. Is that a big market mover . Its a good gauge of corporate spending. Well watch it out but its hugely volatile. I like my data simple. The only thing i would push back on, if everything is okay with the economy as you say, and everything is just fine and the fed is on track to raise rates, why is the tenyear yield still below 2 . Thats a great question. We debate that a lot. People feel its because yields overseas are so low. Im not so sure id buy into it, i think bond markets work independently of each other so that people who can move behind bond markets are fewer and farther than people generate credit. I think theres this idea that inflation has been killed. I think its a very risky thing. Drew were going to have to leave it there. Drew matus from ubs. Thats it for Worldwide Exchange this morning. Squawk box is up next. Good morning, could it be . Two in a hrow, stocks rallying answer the world with crude at highest level in seven months. And st. Louis president bullrd signaling that july will be a meetinging. We also hurt his comments on jobs and the brexit straight ahead. And ant antitrump protest turns violent in new mexico. Police in riot gear use pepper spray and smoke bombs to disperse the crowd. Its wednesday, may 25th, 2016. And squawk box begins right now. The heat is on announcer live from new york where business never sleeps, this is squawk box. Good morning, everybody. Welcome to squawk box here on cnbc. Im becky quick along with joe kernin and andrew ross sorkin. Check out equity futures. Dow futures indicated up by 85 points this comes after a big rally yesterday for stocks. S p up by 11. 5. And the nasdaq up by 28 points above fair value. Check out what happened overnight in asia. Again, all of this started kind of yesterday with the european markets that really took off. You can see it followed up in japan with the nikkei up by 1. 5 . The hang seng was up by 2. 7 . It was just the shanghai composite with a decline of a quarter percentage point. In europe, once again, youll see plenty of green arrows. The dax in ger