Welcome to Worldwide Exchange on cnbc. Im sara eisen. Im wilfred frost. You missed a busy week where your Prime Minister was here. Im very sad i missed that particular vision. A lot has happened since that visit. Over 1 million signatures in the uk to block trumps visit. To meet the queen. To meet the queen. I dont think that petition will be carried through. Thats a side point. A shortterm point is whats happening in the futures at this hour, after what was the worst trading day of the year yesterday, at times that label, the worst trading day of the year, seemed apt. Down well over 1 . Well over 200 points on the dow, finished off the lows, 0. 8 for the nasdaq, with the s p and dow down 0. 6 , which highlights some red dat data, not the worst day. We were down 200 points on the dow, we are reminded how high the day is, that was only 1 . That was the debate of the day yesterday, was it just due for a correction after a strong few weeks, after 20,000, or did that immigration order scare some of the bulls and optimists . Exactly. Some people think a bit of both. Either way the start of yesterday was a riskoff start to the week. Equities down. Also saw the dollar down. And bonds being bought somewhat a riskoff trade. The yen also going up. A lot of riskoff trades going up. Lets look at the tenyear treasury note which settled around the 2. 5 level. 2. 49 this morning. Fed tomorrow, jobs friday. Breaking overnight the bank of japan kept its Monetary Policy unchanged and raised its forecast. The boj will continue to buy government bonds at the current pace. As for the dollar yen, a stronger dollar and a weaker yen, but just bear limit this w barely. This was expected. Global demand has risen a bit and so have markets. Thats made certainly life easier for the japanese, especially that weaker yen against the dollar. Its something that they love. The nikkei quickly, lets show you the japanese stock Market Reaction to all of thchltthis. Which is down, because of the yens move yesterday. Theres the nikkei. Down 1. 7 . Also data out overnight. Industrial Production Growth was a bit disappointing and they lowered their forecast for inflation a bit. Yes, the decision was on hold, as expected. A bit of the nuances around it, a little disappointing. There we go. The reason were taking out china and hong kong, theyre still closed for the Lunar New Year holiday. Were monitoring comments from president mario draghi. He a new survey on sentiment out this morning in the uk Shows Consumers mood improved in january. The reading ticking up by two points topping estimates. Also getting eurozone q4 gdp this morning. The figures topping estimates. If we look at European Markets, we are higher. Thats a bounce back from yesterday where markets were down. The real story across europe is the inflation story where data has been improving. Spanish inflation recording 3 in january. French inflation hitting 1. 6 , more than a fourmonth high for france, coming off the back of decent Inflation Numbers from germany. Equities up today. That inflation story is an optimistic tone for what could happen in europe. It feeds the narrative that the Global Economy is looking up. Something weve seen in a lot to of the earnings reports in the u. S. Well continue to monitor as we get the big tech names. As for the broader market, Energy Stocks were the worst performers in yesterdays stock market selloff. Crude was down a percent. It continues to decline. Well see what the Energy Stocks do today. Wti down a third of a percent. 52. 45. Brent unchanged, 55. 23. A lot of talk about ramping up u. S. Production, flooding the market with supply. Baker hughes rig counts are higher. More u. S. Production means lower prices. As for the u. S. Dollar, weaker yesterday. Nothing extreme compared to at some point the stock market selloff. Weaker again today against the euro. But not against the yen. The moves are fractional. Well wait to see if we get more direction through the session. Pound weaker against the dollar. As we end the month, month to date the dollar is down 2 . Thats something to note as we finish the first month of the year, that there has been a clear turnaround from the posttrump election rally that we saw in the last couple months of the year. Its near a twomonth low, the u. S. Dollar. Its been somewhat of a leading indicator for stocks. Treasury yields have been setting the tone more. Lets show you gold. On the back of the weaker dollar, gold has been rising. Gold had a strong few sessions. Up about a third of a percent. Political risks, some say, is bullish for gold. If thats where were going to be as evidenced by the first few executive orders, gold might continue to get a boost. To politics, President Trump firing acting attorney general sally yates last night after she directed the Justice Department lawyers not to defend his executive order on immigration. Yates was Deputy Attorney general in the obama administration. She stayed on pending confirmation of trumps pick for ag, senator jeff sessions. Now dana boente, the u. S. Attorney for the Eastern District of virginia will be taking over in the interim. In a statement President Trump wrote sally yates betrayed the department of justice by refusing to enforce a legal order designed to protect the citizens of the u. S. The department of Homeland Security also confirms the acting head of the u. S. Immigration and Customs Enforcement has also been replaced. Just went straight on to politics there. I had another markets point to make. Theyre very intertwined lately. Ill save it for the 5 30 markets chat. Are you sure . Yeah. Is a good one. People who watch only the first half of the show will miss out. Tell us. We were just told to keep it moving. I will keep it for 5 30. Thats called a deep tease. Long, deep tease. Hope i dont disapoipoint. President obama is break his silence after ten days. In a statement mr. Obama said he fundamentally disagrees with the notion of discriminating against individuals because of faith or religion. And more companies are weighing in on President Trumps executive order on immigration. Heard last night from cocacolas ceo, muhtar kent saying his company does not support this travel ban. The statement goes on to say as a u. S. Company with operations in more than 200 countries and territories, we respect people from all back grounds and greatly value the diversity of our Global Systems more than 700,000 associates. Pg e also issuing a statement, saying we reiterate our unwavering commitment to diversity and inclusion and creating an environment where all people are welcomed, all people are valued and all people are respected. The reason this is important, its not just tech. This goes beyond tech. Silicon valley leaders weighed in. Banks as well. Lloyd blankfein. Lloyd blankfein. Big consumer companies, doing it because they feel employees are affected, families are affected and theyll speak out. It will make the relationship between Corporate America and the white house more complicated than just some photoopes at the white house. Ian bremer tweeting yesterday, a clear point, leading up to davos, it was clear that every Business Leader didnt want to say anything to ann annoy president elect trump. That has spun on its head. Kind of a strength in numbers type reaction. Clearly driven by the fundmentals. Some have started speaking out, and now some are more confident where two yeeweeks ago no one wanted to say anything because they didnt want to be singled out on twitter. Maybe theyre speaking out because President Trump has given them a voice. The first two days were meetings with manufacturers, autos and business. Elon musk soliciting peoples advise so he can bring it to the council. Ceos have a voice. Were watching to see if they peel off from trump, as well as republicans. That will tell us the chances of tax reform, rolling back regulation, Infrastructure Spending. You mentioned tech leaders have been clear on this. They continue to speak out against trumps controversial immigration order. Jeff bezos sent an internal memo saying employees affected by the ban will have the full extent of amazons resources behind them. Amazon joining up with expedia to take legal action against trumpS Immigration order. The two businesses filed sworn statements as part of the state attorneys general lawsuit against the president. Speaking of tech anti trump protests gathering at google headquarters to demonstrate against the president S Immigration policies. They used the nobannowall. A person at the rally telling cnbc that the google ceo and sergey brin both spoke at the demonstration. The story continues. To todays washington agenda. Several of President Trumps cabinet picks are moving a step closer to confirmation. A handful of confirmation votes were postponed yesterday including Treasury Department nominee steve numnuchin. We expect a vote for tom price around 10 00 eastern. And votes for secretary of education, secretary of interior. Rex tillersons full Senate Confirmation vote will come tomorrow morning. President trump is expected to name his Supreme Court nominee at 8 00 p. M. If confirmed by the senate, this lifetime appointment would fill the seat of Justice Antonin Scalia who died last year. There appears to be two finalists, neil gorsuch and thomas hardiman. President trump has a meeting scheduled with representatives from the pharmaceutical industry today. A list of who hell be sitting down with specifically has not been disclosed. The president has been critical of drug firms. He said earlier this month that Pharma Companies are getting away with murder because they wanted to charge the government for medicine. He threatened implementing a government bidding system to get prices down. Something that republicans over the years have pushed back against. The Pharma Industry to push back against that as well. It will be interesting to see what comes out of the meeting. Todays agenda full of economic and earnings reports. The Fourth Quarter employment cost index out at 8 30 a. M. Followed by the caseshiller home index at 9 00. Chim go pmi at 9 45, and Consumer Confidence at 10 00. The fed begins its twoday policy meeting. The statement expected tomorrow. Eli lilly, exxonmobil, pfizer, mastercard and u. P. S. Before the bell. After the bell, apple. Coming up, concerning apple, the three things to watch ahead of the companys quarterly report. The stock has done quite well since the election. As we head to break, january market returns as we wrap up the month. Hard to believe last day of january. Youre watching Worldwide Exchange on cnbc. Stocks gaining for the month of january. Another sign of rotation from late last year. The nasdaq leading the charge. You cant predict the market. But through good times and bad. At t. Rowe price. Weve helped our investors stay confident for over 75 years. Call us or your advisor. T. Rowe price. Invest with confidence. Welcome back. Futures looking a bit soft at the moment. The dow called lower by 47 points. The worst day of the year yesterday. Only been 30 days of the year so far. Down 0. 6 for the dow. And 0. 8 for the nasdaq. All three indices looking positive for the whole. Joining us on the cnbc news line with a preview of apple is the president and ceo of cm research. Thank you for joining us, cyrus. We have seen declines, three consecutive quarters of sales declines for apple. Many thinking they will bounce back this quarter. Whats your expectation . My expectation is last quarter they had a terrible quarter. All four hardware divisions fell. Only services rose. China fell quite a lot. This year a lot of that could be better. I expect iphone sales to bounce back. The real big one is what will happen for the next quarter and quarter after that. I see, you know, apple as four software platforms. Ios, mac os, watch os and tv os. Only one of those is a success, ios. Ios is at severe risk in 2017 from new technologies. Three i would name are artificial intelligence, google in october of last year said it will rebase its entire business on an aifirst strategy. That kind of makes the apple iphone out of date. Augmented reality. In times these technologies could make the smartphone itself obsolete. Though that will take several years. And voice. Voice, speaking to your computer, conversation Al Technology will replace the touchscreen and the apps interface. We need to know in the earnings tomorrow or today what apple is doing to address these threats. Okay. So you mentioned a lot there. We usually get down to three things to watch. If you had to give us three numbers to watch in the report, services does that still matter to investors . You mentioned thats the growth engine. Iphone numbers and asps . How would define that . I think services, iphone and china. In services, i think we need a big cultural shift. Apple is still a hardware company. The power base is in hardware. And, you know, there are people who say a career in Apple Services is a deadend career. You need to be in hardware to progress. We need to see apples shift towards making Services Something cool within apple. Then second, china. So china the china decline in the last quarter was awful. It was a very big decline. If we see china coming back up this quarter, thats a very good sign. China was heading for 25 of apples revenues last quarter it hit 19 . We need an upside there. Just quickly, some of these concerns already out there. You dont buy the argument that the valuation is low enough . The cash balance is high enough that it means its a buy despite headwinds . We have a sell in apple at the moment. Theres five things that would make it a buy for us and would probably hear some of these in the results. Number one, a new product line to replace the iphone. That could do with cars, ai, vi, home. Number two, better investor communications. Apple has been secretive until its new products until now. It is the Worlds Largest company, we need to know how it is spending research dollar. Number three, acquisition. Apple missed time warner. It may be looking at netflix. Something to give it another theme in addition to ios. Number four, a reversal in the decline in china. I think we may see that. Number five, a big cultural shift in internet services. Thanks for joining us. Cyrus mewawalla. Stock is up 7 in the last three months. Somewhere in the middle of the dows returns. Also unclear what apple looks like in a trump world. Already tim cook spoke out against the immigration order. There are issues that affect it including repatriation of cash. Could be a big one. Apple has a ton of cash overseas, if they can bring it back with the Corporate Tax rate that could mean a big burst. Could mean a big acquisition as well. Coming up, the stocks to watch. Including why shares of Deutsche Bank are trading higher. First heres the forecast from jen carfagno. Good morning. We have a little snow moving into the northeast today. Its a clipper, and those are notorious for moving fast and not bringing a lot of precip. A light one inch to two to three inches, max. New york city, a half inch of snowfall. Temperatures b s above freezing shouldnt be a huge issue. Thats one story. The other story is the expanding High Pressure and heat. Dallas, 78 degrees. Atlanta, tacking on one more 70 degree day. This has been a hot month across a lot of the nation. The cool spots will be across the northern rockies, northern plains. The west, southwest, especially still on the warm side. L. A. Going into the mid 70s again today. Thats your coast to coast forecast. Im meteorologist jen carfagno for the weather channel. Worldwide exchange comes back after this. And turn it into medical discoveries, diagnostic breakthroughs. Proof that black holes collapse into one singularity. I dont know what that is. But yes. Innovation runs on supercomputers. And supercomputers run on intel. You are super smart. And super busy. Ooh ufo false alarm, eyelash were drowning in information. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your future. How do you solve this . You dont. You partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. There goes my sensitive bladder. Sound familiar . Then youll love this. Incredible protection in a pad this thin. I didnt think it would work, but it does. Its called always discreet watch this. This super absorbent core turns liquid to gel, for incredible protection thats surprisingly thin. So i know im wearing it, but no one else will. Always discreet for bladder leaks Deutsche Bank agreed to pay 630 million in fines to u. S. And uk regulators for failing to prevent about 10 billion in suspicious trading being la laundered out of russia. The scheme involved mirror trades between 2011 and 2015. Deutsche bank set aside 1 billion euros for the probes, so the settlements are for much less than expected. The stock is up 2. 3 in trade. Some stocks to watch, nintendo reporting an increase in net profit driven by strong sales of new pokemon 3ds games. The weaker yen boosting overseas profits helping the stronger outlook for the year. H m posting net profit above expectations for the Fourth Quarter. Seeing higher sales in nontraditional markets and the opening of hundreds of new stores. Werner enterprising posting better than expected revenues and earnings. Still they say 2016 was a challenging freight year for the Logistics Business segments. Shares up 6 . Shares of sanmina rising sharply. The Technology Manufacturing company slightly missing expectations but beat on revenue. Archer daniels agreeing to sell its Insurance Business to validesk for 128 million. U. S. Antitrust authorities launching an investigation into Mylans Epipen allergy treatment. This comes after mylan came under fire for raising the price of its epipens from 100 to 600. Teva farm suipharmaceuticals ta hit after a court did not hold up a Patent Infringement claim. Coming up, a round up of the Global Market action. And netflix debuting a new device that could change how you bing watch shows. Stay tuned, youre watching Worldwide Exchange. Well be back in a couple minutes. Opportunities arent always obvious. Sometimes they just drop in. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Good morning. Welcome to the final trading day of january. Among the tests for the markets, central bank meetings. And apple getting ready to roll out quarterly results. Trending stories, including a new way to bing watch tv. Its tuesday, january 31, 2017, youre watching Worldwide Exchange on cnbc. Good morning. Welcome back to Worldwide Exchange. Im sara eisen. Im wilfred frost. Very good morning to you from me as well. Lets get straight to the market action. Why are you laughing . Nothing. Because i said it strangely . No. I was looking nancy, even better on you. I dont know what it looks like on nancy, never saw her wearing it. Lets look at the futures this morning, red, down 50 points. The s p down 5. The nasdaq down 13. Coming off one of the worst trading days of the year yesterday, stocks finishing off the lows down 0. 8 for the nasdaq, 0. 6 for the s p and the dow. Only one of the biggies that went past 1 decline was the russell 2000, index of small caps, so strong post election and failed to reach record highs while the other averages did last week. In terms of what the driver was, was it the immigration ban . Was it profit taking . An interesting indicator was the bank stocks. Down 0. 7 . On a day when they did get good news. Donald trump speaking clearly that he was going to roll back doddfrank. I think he said he was going to do a number on it. Said it had been terrible. Indicating we might well see more deregulation. A surprising amount of deregulation. Yet bank stocks were still down. That suggests it was thiS Immigration band that played to the selloff. The sector specific news for banks was good. Also the yield curve. They continue to respond to higher yields or lower yields. The yield curve was going up yesterday. And the margin. Over the last week its gone up 2. 5 . Yields going up in europe today that was a takeout that made me think it was the immigration more than anything else. Okay. Also the big cap tech names got hit hard. This were some of the most vocal complainers and opposers of that immigration. Including lord blankfein. Lets look at trade around europe. You saw a glimpse of green across the screens for european trade. It comes after we saw declines yesterday. Also comes after various data points including strong inflation data, particularly out of spain today. Also out of france and germany yesterday which pushed yields higher. Asian trade is in the red. We did see the bank of japan make no changes. Slightly downgraded inflation. Also Industrial Production data out of japan, also a stronger yen yesterday. All of those combined to see the nikkei decline how many times did they vote to repeal obama care when prrm was in office . Now since President Trump was there, zip. The only other point, among all the executive orders, is this comments talking about the stock market itself yesterday. Saying some very smart people who saw i was coming into office made a lot of money. Saying in a sort of vulgar way that smart, rich people made a lot of money. Though he was meeting with small businesses, saying the confidence was up from businesses and investors. He also said the market will keep going up. You dont find a president , as eamon javers pointed out yesterday, usually the president says the market goes up, the market goes down. You dont want the president delivering policy agendas for the stock market, you want it delivered for the fundamental economy. President obama is the very guest case in point, very good returns, but didnt deliver on the economy sufficiently to get his party reelected. Clearly hes watching the stock markons tweeting when the dow hit 20,000. Its something theyre watching. Todays agenda, full of economic and earnings reports. The Fourth Quarter employment cost index out at 8 30 a. M. Followed by the caseshiller home index at 9 00. Chicago pmi at 9 45, and Consumer Confidence at 10 00. The fed begins its twoday policy meeting. The statement expected tomorrow. As for earnings, eli lilly, exxonmobil, pfizer, mastercard and u. P. S. Before the bell. After the close, its the big one, apple. I would add under armour reporting this morning, especially with the chart looking so ugly. Ill cover that one to see if they can turn things around. For more on the tech giant, we want to talk apples First Quarter results. Landon dowdy has three things to watch. This is the main event. Thats right. Youll be there front and center. The street is looking for apple to report earnings of 3. 22 a share on revenue of about 77 billion. Beyond those numbers, here are the three things to watch. Iphone sales, following three straight quarters of declines, investors will be waiting to see if tim cook can make good on his promise to return the company back to growth this quarter thanks to the iphone 7 and 7 plus. Much hinges on sales of the flagship phone during the Holiday Shopping season. Second, china. Following a sharp decline in the country last quarter, sales of the iphone 7 will be especially crucial in china after cook said last quarter he was bullish on the asian nation. Commentary and strategy update. And services content, like apple music and the app store could supplement iphone sales. The app store hit a record on new years day. And Services Revenue grew 24 to an alltime quarterly record last quarter. Investors will want to hear any updates on content as well as it announced plans to make its own original tv content. Shares are up about 7 in the past three months. Back over to you. Thank you very much for that. Sara, such a clear focus this quarter, can they get back to sales froth . I bet the first question on the analysts call wont be to do with the numbers but developments over the weekend. And what are your expectations for tax reform and what it means for apple. Not to mention immigration, which hits home not just from a values perspective but also hiring top talent in silicon valley. Lets talk about the markets now. What we can expect from todays trade. Joining us now is derrick halper halperin. We have been talking about how its the last day of the month. While stocks have gone strong, the dollar has reversed course and is now weaker by 2 for the year. Is that it . Was that the end of the big dollar rally . No, i dont think so. Obviously the focus has been very much on the executive orders, as you mentioned. We had 20 in 10 days. So that has been pretty aggressive. That, i think, has taken away some of the focus on what the markets were expecting prior to that. Which is policies to support growth going forward. So the big question for the markets in terms of whether the dollar can come back is if and when we see a shift in focus towards establishing a working relationship with congress in order to move forward with potential policies on Infrastructure Spending and tax cuts. I do expect that. I think in terms of trump reaching out to his voters, yes, of course hes done that through the executive orders. But in terms of bottomline standard of living, in terms of wages, getting through to his voters, there will be no better way of doing that than through progrowth fiscal stimulus policies. As for what the dollar does moving forward, what is more important, the short end of the curve or the long end . Clearly they are heavily linked but there are difference nuances as to what drives each. Its important for what we focus on as to whether the dollar is likely to rise or fall from here. Its a good question. I think from a Monetary Policy perspective specifically, obviously theres perhaps more accurate and timely information by looking at the short end of the yield curve. Certainly in terms of our shortterm regression models for dollar valuation, we would put more weight on shortterm in terms of perhaps twoyear swap spreads. But taking it to the euro, for example, on a development thats been taking place over the last couple of days, i think could have more to come, that is the movement in periphery spreads. So therefore the movements in tenyear periphery spreads in europe does tend to correlate with euro as well negatively, of course. Of course were having a big move higher today in tenyear greek debt yesterday in italy. I think circumstances of the market beginning to contemplate a shift from the ecb later this year in terms of its monetary stance, we could see much greater periphery volatility. Wrap it up for 30 seconds, if you would. Has any of the optimism globy about the trump trade been hurt by thiS Immigration ban and some other orders . The protectionist type of talk . I think it has. Yesterday was a bad day for equities. Clearly it has hit sentiment. When you look at the broader picture, if you look at a correction from the moves we had since the 8th of november, its pretty modest. There is a strong underlying belief that we are going to get some progress on the stimulus, which is key for equities and the dollar. Derek halpenny, thank you for joining us this morning. It is time for some top trending stories. Starting with ben affleck, no longer directing his batman movie. Affleck saying he will continue to star in batman, but is stepping away from the directing role in a joint decision with warner brothers. The actor saying it has become clear i cannot do both jobs to the level they require. He will focus on acting. Already i hope this will be a big improvement from the last one. Because the batman versus superman movie glad you saw this. I dont know anything about it. It was terrible. Our managing editor liked it. I thought it was terrible. I hope we go back to the epic single superhero movies that we saw with the Christian Bale batman movies. Im skeptical. James bond is your real superhero. He is. If they tried to put james bond belong superman or batman bet on bond. I would just cry. It would be terrible. Im bullish on ben affleck. There we go. Netflix engineers are unveiling mind flix a device that lets you control netflix with your mind. You just move your head up and down or side to side to stroll through the netflix interface. If you want to watch a title, think of the word play and the clip will start. That cant possibly work, can it . I dont get it. The new device making a debut at the annual hack day, a day to encourage new thinking. Its not clear if netflix is planning on releasing this to the public. I cant believe that will work. Thats scary. It can read your mind. I dont like it. Imagine if people watching Worldwide Exchange could control things with their mind. What were saying. I dont know. Would be convenient. When we come back you want to control things. Our morning must reads. As we head to break, the European Market picture. Green right now im trying to get to you pay me a compliment. Its not working. Im thinking it. Wilfred mentioned earlier, the Economic Data out of europe was better. That was spot on. Bangon. Now we have a rally. I believe. Youre watching Worldwide Exchange on cnbc. Welcome back to Worldwide Exchange. Approaching the top of the hour. The team is getting ready for squawk box. Joe kernen in nofsew york has a look at whats coming up. A shame we dont have time for our mustreads. I was going to poke andrew ross sorkin. Frantic phoning among ceos, how to address the trump ban. Good topic. He talked about that a lot. You dont have to read his column. On air he does. Sara, thats a great color for you. Thats the first thing i thought of when i looked up this morning. You know that, right . Mary duffy, two thumbs up. Did you hear who else owns this dress . No. Well do a who wore it better. Nancy pelosi wore this dress. I met her. Shes a really nice lady. With good taste in fashion. I think green is a great color for you. Matches my teeth . What are you saying . No im just trying to pay a compliment. My favorite is your orange tie. But i like the green one, too. Is it the 31st . So the 20th was the inauguration. Is this really only 11 days . Raise your hand if you think its a good time to be in the News Business . Raise your hand. Though i think more of the last year or so than just the last 11 days. You know what im saying. Yes. Its the cover of all the papers today. 20 orders, ten days. Yeah. Every day. By 100 well be xauszed. Who knows what will be going on by then. Today well talk about the first 11 days. Ari fleischer will be. Yesterday someone wrote a piece entitled that this executive order from friday balances compassion and security, and makes a case for it. At the same time, you know, say what you will about rasmussen. Rasmussen rasmussen, what poll was good . People trash rasmussen saying he is an outlier. Almost twothirds favor that executive order. 57 , 58 . Well get what is not covered much in i havent seen much in the media, but well cover people that dont think that this is, you know, the end of the konsz tuconstitution. We have sonnenfeld, because we had the becky, we have the b block. We have 12 minutes, we said what can we do here . Sonnenfe sonnenfeld, ask him one question. Hell get us from the beginning of the block to the end. Hes encyclopedic. Thats what im trying to say. Youre right. You have three hours to play with. Alas we do not. We must say goodbye at this moment, joe. Thank you very much. We look forward to squawk box. Thanks to Dennis Gartman who also got a compliment on the dress color. Causing a big stir. Do i have to mention it in the next clock . You have to wear hot pink. Stocks coming off their worst day of the year. Well talk to alex dryden coming up. Welcome back to Worldwide Exchange. Futures indicating a lower start for wall street after the worst day of the year for stocks. Dow futures down 50 points. They did close off the lows of the session yesterday. Didnt quite get 1 move lower. A mini correction. S p futures down 5. Nasdaq down about 14. Joining us is alex dryden from jpmorgan assets. What did you make of the move yesterday . Does it signal a more prolonged type of correction after a strong period for the markets . Its been a difficult january with politicians seeming to dominate the headlines. But its been difficult for markets to interpret all of the political news that has been going on. Its been very varied from trade through to migration. The actual investment takeaways has been difficult. Instead im trying to look for signs of fiscal stimulus, which was driving the market in the last two months of last year. Theres been very painfully little detail from trumps inauguration speech and from the political discussion since then. The discussion seems to be more focused on trade and healthcare reform, meaning its quite difficult for markets to interpret which way this will go. How important is deregulation . Clear comments yesterday that donald trump would do a big number on doddfrank. Is that very bullish for the banks . Its help aful for the financial stocks, theyve been benefiting from the end of 2016 and the beginning of january. Theyve been benefiting not just from the prospects of deregulation but the steeper yield curve. The u. S. Treasury edging higher from its point in october. Were also seeing the injection of volatility back into financial markets. Thats really helping trading revenues. I follow about 20 banks in the u. S. , were seeing fixed income and trading revenues increasing as much as 50 to 60 year on year in the Fourth Quarter. Usually at this time we talk about central banks. We got word from the boj overnight, they improved their economic outlook. The fed begins its twoday meeting. Decision statement out tomorrow. What do you expect from the fed in terms of implications for the markets . The feds Monetary Policy goes hand in hand with fiscal policy. At the moment we have question marks over the timing and scale of any u. S. Fiscal policy so we may see some dovish comments out of the Federal Reserve this week as they try to calm markets. You dont think theyll hint on a march hike . March hike will be dependent on u. S. Economic data. Historically First Quarter gdp data in the u. S. Has been weaker. I will think they will sit on their hands and take their time and see what happens with politicians and the implementation of fiscal policy. With that being said, the u. S. Economy is in a good place. December inflation crept to 2. 1 above the feds 2 inflation target. We are also seeing a tight labor market and rising wages. We continue to think two to three rate hikes is feasible this year with or without a boost from fiscal policy. Alex, thanks for joining us. Thank you very much. Sara what are you watching . Clearly earnings coming out, but looking at european yields today. Apple earnings after the bell. Front and center. Under under armour before, so is exxon and others. Squawk box is next. Good morning. This is the perfect time for it. Youre fired. President trump dumping his acting attorney general after she refused to defend his executive order on immigration. It was only a matter of time before that saying came in handy. U. S. Stocks are coming off the worst day of the year, but a busy day for earnings could help the bulls fight back on this, the final trading session of january. Plus apple ceo tim cook promised to return to growth today. Well find out if his company delivered. Well tell you what to expect from apples quarterly numbers. Its tuesday, january 31, day 11 from the inauguration. Only 89 to go. What else could possibly happen . Squawk box begins now. Live from new york where business never sleeps, this is squawk box. Good morning. Welcome to squawk box on cnbc. Were live from the Nasdaq Market site in times square. Im becky quick along with joe kernen and andrew ross sorkin. U. S. Equity futures this morning, yesterday was a down day for the markets. The worst day of the year for markets. You have to keep that in context. The dow was down 0. 6 . Same story with the s p 500. Still this was the biggest decline for the dow since october 11th. The biggest drop for the s p 500 since december 28th. For the nasdaq since december 30th this morning you see red arrows again. Dow