On cnbc. Im sara eisen. Im wilfred frost. Good morning to you from me as well. Happy pancake day. Happy pancake day. Fat tuesday. I didnt know it was pancake day. Fat tuesday, that is an unflattering name. Getting rid of all the food. And you eat pancakes. We eat pancakes. They actually made a pancake at the end of street signs. I like them with chocolate chips. You guys just eat food . All food . Our slender floor manager said every tuesday is fat tuesday for me. Either way, we just eat. I want pancakes. We have to check in on the Global Markets. We did notch a 12th record close for the dow. Wilfred is not impressed unless we get a 500 point rally, but either way this is the longest string of gains i am impressed. I am impressed. You said, eh, less than a percent. 0. 04 we gained yesterday. Doesnt take much. I need to offset it is incredible. It is. The dow is up almost 5 for the month. The nasdaq and s p up 4 . That clearly is highlighting that this rally picked up again after december and january plateaus. I just say that that record 12th straight gain suggests that when people stop just there with that line that were off to the races, were not. You hear that longest streak since 1987, some might get worried. Remember what happened in 1987. There we go. We had that crash. 22 down in one day. A lot of people are saying you cant make comparisons between then and now. The runup after that record string from 1987 was another gain, then a crash, then the market ended higher for the year. Were nowhere near that right now. Another factor that is different from the 80s to now, and this was mentioned this that outstanding three hours with Warren Buffett yesterday, when Interest Rates he said valuations based on where Interest Rates are at the moment are relatively cheap. Of course as they go up, that changes. I think thats the number one market risk factor were not thinking about. Its been the big thing to the market for the last decade, when it changes, are we underestimating what that means for equities. And the policy hopes continue to fly ahead of the big speech tonight from President Trump. Tenyear treasury note yield. We did finally see yields tick up. They bounced from that 2. 30 level. We have fed speak on the wires. At 2. 36 right now. The only shame of that outstanding three hours of squawk box it meant the cramer Early Morning tweet machine was geared towards buffett and apple products, and not us. Good morning, jim f youre away. Japan factory output slipped in january. Exports of cars slowed. Down 0. 8 was the data in terms of that. Retail sales rose for a Third Straight month. Asian trade for you, a bit mixed. Interesting interview with the head of the Hong Kong Exchange on squawk asia earlier today, highlighting how they are fighting for the saudi aramco ipo. What time did you wake up . I just clicked it on. Didnt watch it live. The rest of asia slightly positive. Europe today, french Fourth Quarter gdp in at 0. 4 month quarter on quarter. 12 plus 1. 2 year on year. Thats relative to, say, germany at plus 1. 9. And the euro average at 1. 7. Inflation dipped a bit. It was meant to be 1. 7, and it was 1. 4 . Im sure the politicians in france will spin that data to their advantage. The last data dump before the election. European trade is flat at this hour. It looks like this race, the french election, as it moves closer to macron and fillon centrists. Right. Le pen far right. Versus le pen. I was going to say if the other two starts to look like a twohorse race t loshgsrace, it for the market. The clear gainer of the last week has been macron pulling ahead. That suggests we wont get the le pen outcome. It is highlighted in the bond markets. Tenyear yield at the lowest level in four weeks on the french tenyear. 0. 87 this morning. Had reached 1. 1 . Its had a big, sharp gain in the last week as macron pulled ahead in relative terms to where he had been a couple weeks ago. The Broader Market picture. Lets show you whats happening with the price of oil. Energy stocks were strong yesterday on a bounce in crude oil. Wti on the back foot. 53. 88, down a third of a percent. Brent crude below 56 a barrel. Weve been in a tight range in the low 50s for the entire month. As for the u. S. Dollar. Lets show you. Got a bounce yesterday after a few sessions where it was weaker. It is weaker against the yen this morning. Down 0. 3 . 112. 35. Pretty flat against the youre r euro. 1. 0588. After that strong runup after the election, trump rally, it has pulled back a hibit. And it has done very little in the last couple weeks. I was surprised to see the month to date dollar index return is 1. 6 higher. Again, february we said in terms of overall market returns have been pretty surprisingly strong. I think the dollar, though its not soaring as it its down for the year. Its down for the year, but the reflation trade has continued over the course of the last month. Fx and fixed income are marching to the beat of the fed and the markets than the u. S. Stock market, which is trading on earnings, policy hopes from washington, especially with the dollar here. The fed rate hike odds for march went above 50 for the first time. Gold prices, rounding things off with that. Not doing too much. Down about a half percent. 1,251. To politics, trump will address a joint session of congress tonight. Sean spicer says the theme of the prime time speech will be the renewal of the american spirit. Particularly focusing on Public Safety as well as Economic Issues like job training, healthcare and tax reform. The president is expected to call for a 20 billion increase in current military spending and dramatic cuts in other programs. Crucial player in the president s cabinet was confirmed last night. Wilbur ross confirmed as commerce secretary after a senate vote of 7227. Ross is key to the administrations plan to overall trade deals like nafta. The white house is expected to hold a swearing in ceremony later today. Just trying to find the tweet that came out from Elizabeth Warren immediately after this. Saying wilbur russ is practically a cartoon stereotype of a wall street fat cat with no interest interests for anyone else but himself. She is loving this billionaire cabinet. To todays agenda the second estimate on Fourth Quarter gdp is out at 9 00. At 9 45 a. M. , Consumer Confidence as welcoming at 10 00. San francisco president John Williams and James Bullard are speaking today. And Steve Liesman has an interview with rob kaplan at 7 30 a. M. On squawk box. Expectations of a hike increasing to around 50 , while the dollar has not been soaring. He made some news yesterday and helped sort of fuel that trade saying they should raise rates sooner rather than later. Doesnt want to go fast, but did talk about increasing rates, not paying too much attention to the market. A bunch of Corporate News to tell you about. Apple holding its annual Shareholder Meeting. Investors will be asked to vote on nine proposals there. Jpmorgan Ceo Jamie Dimon will speak at his banks annual investor day. You will be there. I will be there. The other interesting thing, not to downplay mr. Dimon, but im looking forward to the individual heads, particularly david pinto, the head of Investment Bank and gordon smith, the head of the consumer bank. So, a good look ahead in terms of Investment Banking. Thats not all. Targets Ceo Brian Cornell will present at his retailers annual investor day. Auto zone and target will report before the open. Salesforce. Com is out after the close. Lets focus in on target. Landon dowdy has been digging into this one. She joins us with three things to watch when the retailer reports. Good morning. Good morning. The street is looking for target to post earnings of 1. 51s a share on revenue of about 20. 7 billion. Beyond those numbers, here are the three things to watch. Q4 sales, samestore stales a s q4 sales, samestore stales aal expected to have dropped after two quarters of growth. Target warned of weaker sales during the holidays. Second, trumps tax plan, target sent executives to meet with President Trump earlier this month, lobbying against higher taxes on imports. Many retailers like target rely substantially on imports. You want to listen to commentary from their meeting or the president s scheduled speech before tonight. And the third thing to watch, the retailer is hosting the Financial Community in new york city today for its investor day and earnings all rolled into one. Investors will want to hear more details about targets strategy going forward. Lets look at the stock. Shares of target are under pressure. Down about 14 in the past three months. Back over to you. Thank you very much for that. On a further programming noted, dont miss an exclusive interview with targets ceo, Brian Cornell alt 1 10 p. M. Still to come, the top corporate stories, including a surprise announcement by spacex, how the company is making a vacation to the moon a bit more probable. Details on that coming up. Stay tuned, youre watching Worldwide Exchange on cnbc. Mod welcome back to Worldwide Exchange. Yesterday all three indices were higher and 12 Straight Days of record closes for the dow. Markets off to the races once again. As you well know from earlier in the show and during the last week i like to offset that by saying the gains were very small. 0. 04 higher for the dow. The nasdaq up about 0. 3 . Yes, we do continue to push higher on the dow. Of course only very slight gains needed to hit those records. As things stand, we might get one more to make it 13 for the dow. Its up fractionally. The s p and nasdaq down slightly in the premarket. To round things off, a more bullish tone, which i cant hide away from is the market returns for february. This the final trading day coming up. As things stand, almost 5 of gains for the dow. Significant prolonged gains in momentum. Nasdaq and s p up nicely for the month. Albeit slightly behind. Dollar up a bit and crude oil up as well for the month. South korean authorities formally charged the heir of samsung, jay lee with bribery and embezzlement. Lee was arrested last friday for his alleged role in corruption with the president. What a scandal. This is the big day for his publicity in this thing. Chinas considering financial incentives including birth rewards to encourage people to have a second child. Economic constraints have made many reluctant to expand families. Chinas birth rate rose last year to the highest in 16 years. The government is concerned that the shrinking work force wont be able to support an increasingly aging population. The one Child Program officially was being phased out starting in 2015. The changing of the demographics, in terms of a more decade longview. A surprise announcement from elon musk and spacex launching a mission beyond the moon and taking some paying customers along for the ride. Kerry sanders reports from the Kennedy Space center. Reporter spacex is going where no man or woman has gone before, into deep space with two paying passengers next year. Billionaire owner elon musk announcing he has taken two substantial deposits for a weeklong mission to the moon and bag. Spacexs dragon capsule will circle the moon like the apollo 11 crew 47 years ago. But these passengers, who will be trained and called astronauts, will not land as Neil Armstrong did. Thats one small step for man, one giant leap for mankind. Reporter the names of the two astronaut passengers, their genders, and how much theyre paying, remains a secret. But a hint from elon musk, theyre not from hollywood. Kerry sanders, nbc news, Kennedy Space center. If the adventure goes as planned, it will be the deepest people will have been in space in 40 years. I thought we should enter a Worldwide Exchange into that. You want to go beyond the world. Planetary exchange. New show. I would be up for that. You . I would be a little scared. I dont know if i would want to be the first. As long as ten people have gone, come back safe, im up for it. Very exciting. Snap inc expects some investors to make a yearlong commitment not to sell their shares. The parent of snapchat will make its offering tomorrow and trade on the New York Stock Exchange on thursday. Snap expects about 50 million shares of class a stock to be subject to a oneyear lock up period. Shares are designated for new investors who dont currently have a stake in the company. Some other stocks to watch. Priceline posting earnings above analyst expectations thanks to a surge in hotel reservations. The quarter rising nearly 18 por . Hertz seeing a wider than expected loss. The company booking 254 million in charges amid continued weakness in its car rental business. And workday beating on the top and bottom lines. Subscriptions grew nearly 40 for the quarter. The workday ceo appearing on mad money last night and told jim cramer about how oracles acquisition of net sweep helped them. My guess is most of the net sweep Management Team will be gone in 12, 18 months, so most of those companies chose not to do business with oracle. I think they might come back to market and create an opportunity for workday. Competition is rising out there. Workday shares, by the way, down more than 3 . Perrigo agreeing to seat belt royalty stream from its drug tsyabri for 2. 5 billion. They say the cfo also has resigned. Tenetsal healthca healthca because of weak demand. Its down 14 . And Frontier Communications losing customers and seeing average revenue drop as it missed sales targets, down 4. 5 . One stock to throw in there as well in london that is up, bae systems, defense contractor, up 2. 5 . After the u. S. Will spend more on military . Exactly. Still to come, the white house is promising a bold agenda from President Trump when he addresses washington later. But first, here is the Weather Forecast from kelly cass. We are concerned about dangerous storms in the nations midsection. Severe weather, including the possibility of tornadoes and pretty far to the north for this time of year so springfield, illinois, over towards indianapolis, stretching all the way down towards the arklatex. Northeastern texas, there could be some hail with these storms. Straight line winds could also cause damage, even if you dont get a tornado. Scattered showers across the ohio valley as well. A foggy start in atlanta. Temperatures on the warm side, into the mid 70s. Across the west, the northwest continued to be active yesterday. Drying out for seattle. 64 in los angeles with plenty of sunshine. Yes, more snow coming for the mountains of colorado as well as denver. Thats a look at your national weather. Well be right back. With the help of the lowest taxes in decades, a talented workforce, and worldclass innovations. Like in plattsburgh, where the most advanced transportation is ready en route. And in corning where the future is materializing. Let us help grow your companys tomorrow today at esd. Ny. Gov welcome back. Making headlines, sales of cuban cigars rose 5 last year. Cuba opened its annual cigar festival yesterday. Officials say demand has soared even as the tobacco crop has fallen the past two years because of bad weather. Sales have risen with more than a 12 increase in tourist visits. Are you a cigar smoker . No. Neither am i . My dad would have five or six a day. Cubans . Always the finest. There wasnt a ban in london. They were still incredibly expensive. There we go. Now to sports. The Golden State Warriors notched their 50th win last night beating the philadelphia 76ers, despite one of the worst shooting nights of steph currys career. He missed all try not to cry. Missed all 11 of his threepoint attempts. Golden state what do you think is wrong . They have had at least four straight seasons with 50 wins. I think you need to see him, put your arm around him, give him the confidence he needs. The warriors became the first team to clinch a playoff berth. He has such high expectations, he cant deliver every time. Hes just not actually that good, really. I think hes that good. Saving it for for the finals. Okay, fine. Coming up, the top stories and a round up of the Global Markets and new details emerging on the best picture blunder. What actually happened at the oscars . Well tell who is to blame and how he got caught. I still love this hilarious. Ridiculous. Stay tuned, youre watching Worldwide Exchange. Ip is inst. Theyre experts in things you havent heard of researchers of technologies that one day, you will. Some call them the best of the best. Some call them veterans. We call them our team. May not always be clear. But at t. Rowe price, we can help guide your retirement savings. So wherever your Retirement Journey takes you, we can help you reach your goals. Call us or your advisor t. Rowe price. Invest with confidence. Good morning. Happy pancake day. Market meltup, the dow posts another record high. Washington watch. A live report from the Nations Capital ahead of the president s address to a joint session of congress tonight. And the oscar envelope culprit revealed. New details on who was behind the epic mishap and how he caused one of the worst or i think best live tv missteps in history. Its tuesday, february 28, 2017, youre watching Worldwide Exchange on cnbc. Good morning. Welcome to Worldwide Exchange on cnbc. Im sara eisen. Im wilfred frost. Good morning to you from me as well. Lets get straight to market action. 12 record closes for the dow and all three indices high yesterday. I can say no more. The dow called higher again today. Were set for the 13th. The reason im putting this slightly sarcastic tone is the gains have been small over the last couple of days, but its the resilience of markets. I will add another stat in there, to show you the impressiveness and how resilient it is the dow and s p have only posted three losing sessions each this month. This is the last day of the month. Its been a strong one. The dow is up 4. 9 . The s p and nasdaq up 4 for the month as a whole. Mixed picture at this hour. Asia in trade, hong kong lower. Japan flat. Shanghai eking out a half percent of gains. In europe, germany was low. The rest slightly higher. One basis decline for germany leaves it in the red. Oil has had a firmish month. Up about 2 , a little more than that for the month giving some back this morning. Wti sitting just below 54 a barrel, 53. 96. Brent down 0. 3 at 55. 78. Nat gas continues to weaken on the warm weather in the northeast. As for the tenyear treasury note yield, lets show you again. Its been important. We bounce from that 2. 30 level yesterday. There is some selling of bonds. We saw it yesterday. Were seeing it this morning. See if those yields tick higher. They have been in a range. Theyve been low lately. Thats the important point. 2. 3 to 2. 6 is the range Rick Santelli has been talking about. It is somewhat amazing that we have rate hike expectations jumping to 50 now. A little bit more than 50 for march. Yet yields have slipped. German yields, global yields are lower. But this hawkishness has not manifested itself in the bond yields. Tenyear yields slipping a bit is something to watch, especially with the interview with mr. Kaplan. A Voting Member of the fed. I would say its further proof that the fiscal policy is driving the action around the globe. Politics and policy. Well see. We wont get a reaction to President Trumps speech, its tonight. Well see how the market reacts tomorrow morning. If theres more scope or clarity about taxes, he will speak about infrastructure, we know that. And deregulation, all of that is something investors are tuning in for. As for the u. S. Dollar t does bounce higher yesterday. The president said he wants to spend big on infrastructure, also spend big on the military. That helped the dollar a bit. The euro is bouncing. 1. 1. 0602. The dollar is weaker against the yen. A weaker year for the dollar, weaker to u. S. Stocks. Its up about a percent or so for the month. 1. 6. Marching in place sort of waiting for further clarity on the direction of the u. S. Economy and u. S. Yields, which dollar y dollar yen tends to track the shorter end of the curve. The pound is weaker than the dollar. Gold quickly which has made a strong comeback this month and over the last few weeks. That line keeps moving higher. Down a half percent this morning. It is near multi month highs. On todays washington agenda, trump will address congress tonight. Eamon javers joins us from washington with a look at what we might hear. How optimistic will President Trump be tonight, eamon . Thats the word of the day. Absolutely. You can look for the president to be more optimistic in his address tonight. Certainly more optimistic than in his inaugural address which was criticized by some for being grim, with its talk of american carnage and the like. Heres what some Senior Administration officials told reporters last night to expect from the speech. They said the theme is the renewal of the american spirit. And we could hear the president talk about some jobs that have been created so far under his watch at Companies Including ford and General Motors and boeing and a long list of others. Were told this is a speech that will include some surprises and that the president of the United States was still working on the speech with his staffers last night. We also got a list of some guests that the president and first lady will have sitting alongsi alongside melania trump, including megan crowley, diagnosed with a vicious disease at a young age. Her father founded a Pharmaceutical Company in order to find a cure. Shes now a college student. And Jessica Davis and susan oliver, widows of officers killed in 2014 by an illegal immigrant. And denisha merriweather. The first person in her family to graduate from high school and from college as a result of tax credits. You can see some themes the president will be weaving into the address tonight. Well wait to see if we get specifics that you were talking about in terms of timing on taxes, trade, healthcare and the rest. My guess is that this is not a president who will load this up with a lot of policy specifics and details. Thats not going to be the venue for this particular speech. A lot to of president s have done that in past years. The way these things have been done over the years is that every agency of the federal government lobbies the white house to have its particular program mentioned in a particular line in the speech. I dont think this will happen that way at all. This is a president who doesnt like to use the teleprompter. We will see if the president varies from that tradition tonight as well. If we dont get those specific timings and policy specifics, the other thing everyone will be focused on is tone of the people in the room with him. Both houses and both sides of the political aisle. Will this be something, given it is his first pseudo state of the Union Address that people will respect what he says regardless or could this be a tense couple of hours . I think it will be a tense couple of hours. Democrats are smarting from their election defeat. They dont like this president or his agenda. You think back to Barack Obamas early years and giving stated of the Union Speeches and that moment when a member of congress yelled out you lied to barack obama. That was the intensity of the disagreement between Barack Obamas agenda. Democrats criticized republicans for shouting out at obama. Will they do the same to donald trump . That will be the strategic decision on the part of democrats. Do you think hell talk about the news media . I would imagine he will talked about the news media. Thats one of his favorite topics. This white house views the media very much as the opposition party. They think they can gain a lot of ground with Political Base by running against the National Media the president , though, had a dinner with reporters last night at the white house. He brought in regional reporters from around the country and had about 20 of them for dinner in the state dining room last night. They are doing some Media Outreach even as theyre campaigning against the media daytoday. The fake news media. Eamon, thank you. You bet. Now todays agenda on wall street. Second estimate on Fourth Quarter gdt at 8 30 a. M. Growth forecast to be revised up from 1. 9 to 2. 1 . 9 00 a. M. , the monthly caseshiller home price index and chicago pmi at 9 45. Consumer confidence numbers at 10 00 a. M. John williams and jim bullard will speak today. And on a programming note, Steve Liesman has an interview with dallas fed president , robert kaplan, squawk box 7 30 a. M. Eastern time. He made headlines yesterday saying sooner rather than later on rate hikes but not too quickly. We dont have to pay too close attention to the market signal. Thats what we want to know, what does sooner rather than later mean . March or may . Apple will hold its annual Shareholder Meeting at its cupertino offices. Voters will be asked to vote on nine proposals. Jpmorgan has its annual investor day. Jamie dimon will speak at 8 30 a. M. Eastern time as well as various other heads of departments. Target Ceo Brian Cornell will present at their retailers annual investor day. Auto zone and target report results before the open. Salesforce. Com is out after the close. A Top Executive who represents carl icahn on several corporate boards has left the hedge fund. He was director since 2008 and served on a dozen boards at icahns behalf. Reports say he wrote an email to colleagues in december announcing his departure. Didnt say what he was doing next. Its unclear whether icahn will replace him. Paul tudor jones is cutting fees for the second time. The change comes as tudor investment has seen clients pull money, upset about high fees without much profit in return. In other headlines, Morgan Stanley gave some Wealth Management clients Incorrect Information on taxes that caused some to underpay and others to pay up. In order to cover the costs, the bank is setting aside 70 millions to k millions to cover costs. Its in discussioned with the irs over those errors. Tax season. Im learning about it. I think its worse than tax season in the uk. Why . Dont get me started. You have to do double tax day. All these confusing things. Hire a good accountant. Top trending stories, pricwaterhousecoope pricwaterhousecoopers, we have some light on the envelopegate. The company saying that its own accountant botched the procedure for announcing the best picture oscar and then failed to act quickly enough to correct it. Brian cullen was tweeting out a picture of emma stone back stage shortly before giving Warren Beatty and faye dunaway the envelope. Thats what you get for live tweeting. A boring Accounting Firm makes a mistake. The selfcongratulatory oscar ceremony gets an embarrassing moment. You were back stage with emma stone, would you be tweeting a picture with her . I would hope the answer would be i would hope i joking. I dont want to know the rest. My favorite top inge, nick viall is heading to the stage. Hes the bachelor and hes set to come pete on a season of dancing with the stars. He appeared on season 10 and 11 of the bachelorette. He was runnerup both times. He was also in bachelor in paradise. Hes now the star of the bachelor. He used to work for salesforce. Com. No longer does. I think hes a professional reality tv star. I guess you can make a living doing that. I agree. Good for him. Take the opportunity if its there. I wonder what this means i wonder if this means hes not getting engaged at the end. Thats what bachelor fans wanted to know. I thought they had to propose to someone. They dont have to. This is real life. Its not true love . No, i cant take it. Either way you dont get it. I dont know if this dancing show is the same as the british one. If i was his fiancee to be at the end of the show i would be worried because they always end up having affairs with their dance partners. You know . That is a worry. Maybe they are planning it and he can go on to the next season of the bachelor. Maybe he failed at love on the bachelor its not love. I tried to get through it. I got two episodes in. You gave up on love. I gave up on false rubbish. I believe in true love. Just havent found it yet. If emma is watching emma stone . Emma stone. I also would need to take a selfie. Spacex is planning to send two tourists on a vacation around the moon. The journey would consist of a long loop around the moon before heading back to earth. The two people would spend about a week inside a spacex spacecraft. The company aiming to launch this moon mission in late 2018. Maybe emma stone would want to do this with me. First date. Over the moon. I think its a good idea. When we come back, todays must read stories. First as we head to break, look where european stocks are trading. Theyre coming off four straight losing days. Were seeing some gains across the continent, particularly in france and the uk. Youre celebrating these tiny gains. I saw grown and got excited. Stay tuned, youre watching Worldwide Exchange. Shes got that gorgeous 20something skin. Is it dna or olay . New olay total effects fights seven signs of aging to help take years off of your skin age. Who needs dna when you have olay . New total effects. Welcome back to Worldwide Exchange. Time for our must read stories. My pick is in the final times. President trumps promises, how much has he achieved so far. It is 12 pages long, the printout. It goes through basically every different separate category in terms of what he promised on the campaign trail and what hes done since. There is not a conclusion. So its there for you to make your own. My take away from the 12 different broken down areas is that essentially hes matching the rhetoric on the campaign trail. We have not really seen actions yet. Thats what everyone will be focusing on tonight, whether we get that detail. You cannot take away from this that he is doing what he said on the campaign trail. Everyone is taking stock. Thats what the article and the mustreads are all about. I went to the wall street journal to the editorial board, trumps reality test. It is sort of looking at some policies from President Trump that they say are steve bannontype policies. Immigration. The war on the media, versus the ambitious reform that President Trump actually has to get done with congress. Thats the reality test. It reads the central problem is that the bannon agenda and style cant produce the results they promise and may undermine the rest of mr. Trumps agenda. Tariffs that reduce trade wont spur growth. Mr. Trump needs to lift incomes. A too harsh crackdown on immigration will cause labor start taj. The attacks on the media may satisfy core supporters but also create animosity and more political headwinds for his agenda. What they do like is the pro growth stuff that he does need congress for. Thats a reality test. That will be in focus today, as you referenced earlier when he speaks to the joint session. Still to come here is where we stand on this last day of february. Stocks on pace for 4 gains for the month. Well discuss whether this melt higher can continue next. 5 for the down. Youre underplaying it. And youre impressed, unlike you. Thats true. Stay tuned, youre watching Worldwide Exchange. 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. You wont see these folks they have businesses to run. They have passions to pursue. How do they avoid trips to the post office . Stamps. Com mail letters, ship packages, all the services of the post office right on your computer. Get a 4 week trial, plus 100 in extras including postage and a digital scale. Go to stamps. Com tv and never go to the post office again. Welcome back. Futures mixed at this hour following a 12th record close for the dow. Off fractional gains, 0. 04 . Joining us now is larry adam from Deutsche Bank private Wealth Management. Thank you very much for joining us. Good morning. All focus really on President Trumps speech tonight. Do we now need to see some serious policy action or do we risk, if we dont, of seeing markets pull back . I think you do. I think theres two things to watch tonight when you watch the address. First, you need to look at tone. The second is message. When it comes to tone, its very important. Donald tends to be more of a counter puncher. You have seen some rhetoric about existence without resistan resistance. He has to show he wants to get things done. And its all about messaging. He cant just talk about rhetoric. He has to fill in some specifics chen it comes to tax reform, when it comes to healthcare. When it comes to infrastructure. Those are things that the market is looking for and we need to see that starting tonight. Weve been talking all hour about how its been a banner month for stocks. 5 higher for the dow. 4 for the rest of the averages. Were on this amazing winning streak of resilience for stocks. How have your clients been reacting to this melt up . Theyve been happy with how the markets have been . Are they putting more money into the market or pausing . Weve turned more cautious. So when you look at fundamentally, its important to recognize that youve seen significant pe expansion over the past 12 months. The pe 12 months ago was 16. 5 on election day it was up to 18. 4, today its at 19. 8. Over the last 1 mont2 months, tp 500 has rallied 25 . And 20 is on the back of pe expansion. I think earnings will have to be delivered to support these upper eval wuatio evaluations. Weve seen the rate hike thought increase to 50 for march, but yields have slipped lower. Can you explain that dichotomy for us . The next two weeks will be paramount on ultimately what the fed decides to do. I think you have chairwoman yellen speaking on friday. You have the vice chair, fisher speaking. Theyre speaking about the Economic Outlook and fed policy. That will be a good insight into what theyre thinking at the fed. Then you have pretty significant tier one data coming up over the next week or so with the ism tomorrow, vehicle sales, next week you get the employment numbers. I think that will be the telltale sign whether or not we do see one sooner rather than later. Our best estimate is still june. If those numbers come in stronger than what people are looking for now, you could see them go earlier. That being said, i think some of the strength or weakness youve seen recently in the dollar, i think that reverses itself. I think by the end of the year the dollar does rally. You mentioned valuations before as a reason to be cautious on stock after we got a message loud and clear from Warren Buffett who said in the context of super low Interest Rates, stocks look cheap. You dont agree . Relative to Interest Rates, you could see some upside, but i do look at all the fundamentals. I look at where earnings are being generated, where sentiment is, where the economy is going. I would say more importantly than looking at the overall aggregate valuations, you have to be much more selective. Notwithstanding what mr. Buffett said, selectivity is even more critical now. You have to look at many different policies being talked about in washington. When you talk about tax reform andibilideductibility, that will hurt highly levered Companies Like utilities. Repatriation, obviously that helps certain sectors Like Technology and healthcare. I think you have to look at the policies that are actually being put in place to see how they have an overriding impact on the market. Larry, thank you very much for joining us. We have to leave it there. Larry adam of Deutsche Bank private Wealth Management. 20 seconds. My focus will be the jpmorgan investor day. I will head there straight from there. Jamie dimon speaking at 8 30. I will be looking at the dow. President trump is speaking today and already referenced the 12 Straight Record closes. Will he get 13 on the eve of his joint statement to congress. Thats it. See you tomorrow. Is the stuff that matters . The stakes are so high, your finances, how do you solve this . You dont. You partner with a firm th advises vernments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. Good morning. 12 in a row for the dow. Thats the longest streak of record closes in 30 years. Totally coincidental. Trump, the president , goes prime time. The white house promising a bold agenda for President Trumps first congressional address. And a billionaire ceo says Artificial Intelligence will surpass human intelligence within 30 years. Thats right on time. Hes investing in companies that will make it happen. Details straight ahead. Its tuesday, february 28, 2017. Squawk box begins right now. Live from new york where business never sleeps, this is squawk box. Good morning. Welcome to squawk box here on cnbc. We are live from the Nasdaq Market site in times square. Im becky quick along with joe kernen and andrew ross sorkin. Look at the u. S. Equity futures. In case you missed it, its 12 in a row for the dow. That has not happened, 12 up sessions in a row for the dow since january of 1987 this morning things are flat. Dow is down by less than 1 point. Futures for the s p 500 indicated down by over a point. The nasdaq indicated down b by 3. 75. Overnight in asia, the nikkei was flat. The hang seng down by three quarters of a percent. The shanghai up by