Im wilfred frost. Im seema mody in for sara eisen. Always good to be by your side. Lovrnlgts l lovely to have you here. Yesterday the dow losing 22 points but the nasdaq hitting another record high, a divergence between the major indices. Looking at the futures where theyre trading on tuesday morning, if youre just waking up with us. Here we go. S p 500 calling for a higher open by one point. Dow jones higher by 13 points. Bp earnings, results is something investors are digesting. Nasdaq higher by 8. We will keep a close eye on the nasdaq throughout the day. Apple hitting a record high now up 25 this year ahead of its highly an tess pated earnings report, which is die this afternoon. Ju the nasdaq composite, a big mover of the overall index. Quick note on treasuries, looking at where the bond market is trading now. When headlines began to cross about the 4. 3 reading in the gdp model forecast we saw a sharp drop in treasuries and gold. Tenyear note yielding 2. 33 . Yesterday, as you said, a techdriven day. The dow was positive most of the day. Just slipped into negative territory by the end of the day. Banks also outperformed. It was the boring sectors, utilities, telecoms that underperformed that meant the dow and s p were behind the tech heavy nasdaq. In europe, most of asia was closed yesterday because of the may bank holiday. Open again today. Australias central bank leaving rates unchanged. So the aussie dollar not really moving. In china, the cak s kshgcac sur to the weakest pace in seven months. Also it showed manufacturing pmi soft yesterday. We have not seen much reaction. Shanghai down 0. 3 . Nikkei up 0. 7 . A bit of yen weakness over the last day or two. Thats one of the reasons japan is higher. European trade is closed yesterday. Its higher today. We have got about a quarter percent in france. A bit more for the ftse 100. The ftse 100 legged up a bit after we had uk manufacturing pmi in april. A big beat. Expected to be 54. 2. So that coming in higher than expected. The final readings of the rest of european pmis on the continent strong as expected. Just the second reading as opposed to a new number. But continues to show European Manufacturing and pmi is better than expected. The uk beat today was a surprise. The continental european beat was to be expected. Notable improvement in pmi as we track the progress of the uk economy post brexit. A down day for commodities. Yesterday crude lost 1 . Similar in ice brent crude. Today were higher. Wti at 49. 05. Cant get above that 50. Ice brent crude at 51. 86. Looking at the broader commodities and how theyre trading on this tuesday morning, one of the reasons that we saw movement in the commodity market yesterday was because of stronger green back. The euro now at 1. 09 against the dollar. Gold quickly, we did see a bit of selling yesterday. How is it doing today . Here we go. 1,255, up 0. 1 . The interesting thing to pause on on the oil price, on friday we got a bit of reprieve. It was a bad month for oil, bad week for oil. On friday, chevron exxon numbers surprised to the upside but started this week negative territory. The oil sector underperforming. Interesting to see bp outperform today. The question is whether these types of earnings can support the Energy Sector for more than one day, which was the case last week. Oil prices up a bit today, but certainly one of the risk factors to keep an eye on in the face of otherwise positive earnings coming through. The other point from yesterday is that volatility was low. Volumes tenyear low for the vix. Volatility surprisingly low. Volumes were low because of european and asian markets were closed. It is an amazing low in terms of volatility. Big news out of hollywood. The Writers Guild of america striking a lastminute deal with the alliance of Motion Picture and television producers. Hollywood writers were threatening to walk off the job starting today if a deal was not reached. The statement confirming they reached a tentative agreement on the terms of a new threeyear collective bargaining deal. In earnings news, bp topping estimate base penny. The oil giant reporting earnings of 7 cents a share. Earnings up 1. 6 . At big round of names reports before the bell, including conoco phillips, mastercard, merck and pfizer. After the bell the mother of all earnings reports, apple. On the economic front. The fed kicks off its twoday policy meeting. The big automakers will release april auto sales. Indian outsourcing firm infosys is making a big bet on america. The Company Announcing it will create 10,000 jobs here in the United States of the next two years. Those jobs will focus on the cloud, Artificial Intelligence and big data. Four new facility also open as well. With the next one by summer, august of 2017. Ill speak with the indiana governor and the infosys ceo today at 8 00 a. M. Eastern on a cnbc exclusive. It will be interesting to see this broader trend, International Companies feeling the pressure from President Trump and showing they are willing to invest in americas job story. Stocks to watch today, Barry Dillers will buy angies list and create a publicly traded Company Called angie home services. Up 41 . Advanced micro devices matching estimates in the latest quarter but shares dropping on disappointing gross margin forecasts. Shares of luminex up. Chegg shares getting a bump following the earnings beat. The textbook Company Earnings revenue above expectation and rising fullyear guidance. And Tenet Healthcare posting a smaller than adjusted loss. The Company Announcing a deal to sell its acute Care Hospital and related facilities in houston to hca holdings. And tenet says all its Hospital Centers and physicians will be phased back to humanas network starting next month. Texas road house Quarterly Results topping estimates. The company seeing sales jump more than expected. Shares of texas road house up 9 . A couple more stocks to watch. Chinas Ten Cent Holdings announcing it will open an ai Research Facility in seattle to be led by yu dong. He will run the new lab and spearheading research in speech recognition and natural ralangue understanding. Monsanto terminating an agreement to sell its Precision Planting to deere. The doj filed a lawsuit last year blocking the deal. The sale was originally announced back in 2015. To washington news, President Trump says he is considering breaking up the nations biggest banks. Its a promise he first made on the campaign trail but then seemed to put on the back burner. Major averages slipped and rebounded on the news while government bonds hit the highs of the day. Bank stocks dipped and rallied with investors taking a winwin view that breaking up the banks would open up Business Opportunities for bigger firms. I think people just didnt really feel this was likely to happen. Because we did see a lot of big banks outperform yesterday. It wasnt just the smaller regionals. Bank of america up over 1 . My take on this, if we look back at what the ceos of the big banks were saying on the earnings call, even if you were to see some form of ring feng g i fencing law come in, people dont expect it to be glasssteagall. In london, the fca brought in ring fencing. Barclays is going through that. The view is, a, they think this is unlikely despite him saying it. But b f it does come in, it wont be as bad as a pure and simple return of glasssteagall. The rally towards the end of the day was based on the eblgs pexpn that this wont come. For the big banks it would be a bad thing for share prices. The Trump Administration reportedly plans to replace the chief overseer of federally chartered banks. The white house is preparing to replace comptroller of the currency, thomas curry as soon as this week. He was appointed by president obama for a fiveyear term which expired in april. The comptroller oversees hundreds of Bank Supervisors stationed inside large financial firms. This is interesting. One of the areas where people have been disappointed in the first 100 days is the lack of new appointments to area like most crucially the fed vice chair of supervision which we still havent got. An added aspect that was confusing investors is thomas currys term, hes seen as a heavy regulator as opposed to someone of the new mindset of deregulation had not been replaced, even though his fiveyear perm had eterm had en. People were wondering maybe donald trump is not committed to deregulation. If confirmed he is leaving, thats something that will be encouraging for the banks, particularly if it was paired soon after with a new appointment to the fed vice chair of supervision it would have a reignition of belief that this is a deregulatory administration as opposed to take its time. A lot to do, such little time. Also looking for more appointments at the state department. President trumps nominee to lead the s. E. C. Is one step closer. The final vote will take place tomorrow on the nomination of jay clayton. In other banking news, Credit Suisse deployed 20 robots within the bank. The goal is to reduce the number of calls coming into the compliance center. Though the technology allowed Credit Suisse to cut back on middle office staff, headcount remained flat because the bank hired a large number of programmers. All right. Coming up on the show, france back in the spotlight. Were just days away from the final round of the president ial election in the yureurozone. Well discuss market immplicat n implications with peter spiegel. We, the entertainmentloving people, want all our rooms to be tv rooms. Because those are the best rooms. Because they have tvs in them. And, when were not in those rooms, we want our shows to go with us. Anywhere . You got that right, kid show thing. Get a directv allincluded package for 4 rooms. Only 25 a month, price guaranteed for 2 years. Available for at t unlimited plus customers. A global hot spot to watch is venezuela. The country of ts congress hea called for people to rebel. An intensifying protest movement entered its second month. To europe the second round of the French Election is fast approaching. Tomorrow is the final debate of the candidates, Marine Le Pen and emanuel macron. Friday is the final day of campaigning. And sunday the french people head to the polls to elect the next president. The result will come out mid afternoon eastern time sunday. Joining us from london is peter spiegel. Theres great confidence that this pairing of le pen versus macron points to the marketfriendly outcome of emanuel macronle pen . Is there any rceason to doubt that outcome . Macron has had a weak first week. The big question is turnout. Weve seen the french pollsters do well. They did predict the first round accurately. The polls still show macron significantly ahead of le pen in the second round on sunday. The problem is weve seen time and time again the Front National and le pen supporters are motivated, they show up. The question is whether macron supporters are that motivated. It is the urban elites that support him. Hes expecting to win over the supporters of most of the other mainstream candidates from the left and right. But the question is how motivated are they . Will they turn out . Will they turn out enough numbers to offset the Front National supporters for le pen. But thus far weve seen nothing change the narrative that macron will win and the euro maintained its highs from after the aftermath of the election. Right now the markets and pollsters are betting an easy macron win. We knows there a mindset in france of anything but le pen. Anything but the National Front. In part that is in relation to her father and the National Front back in the 70s, 80st and 90s. Is le pen shaking off that view of her, or is she still significantly labeled in the same way that her father was . Its where your base is coming from. The fact of the matter is even if the polls are correct, shell get 40 of the vote. Thats significantly better than her father did about 20, 25 year years ago. 40 of france voting for an overtly antieuro candidate is remarkable. She made that accomplishment. We cant take that away from her. The problem now is she has to talk to two audiences to get anywhere above 40. She has to win over the fillon voters who are catholic, conservative. At the same time she has to win over the hard left melenchon supporters who backed him. Ant antieu. She had been struggling to win over conservative central france and hard front urban left. 40 of the vote, for a major president ial candidate coming from the Front National, thats a significant victory for her. How important is this french tv debate for le pen . Is this her last chance to catapult her base . I think its more important for macron. Macrons support is wide but thin. If he faulters here at all, which we saw in the first few days of his second round campaigning, it is his to lose right now. He has to turn out his base. I dont think well see le pen win much more votes than she has, but macron can lose his base. Much more at stake tonight for macron than le pen. Quick question on italy. The euro has rallied off the back of this result. Are people too quick to extrapolate that this means the eurozones problems are over and an election to come in the next 12 months in italy as well. Election to come. Weve seen the populist party there, the five Star Movement doing well. Theyre neck and neck with the democratic party. Another party that is populist, antieu and we still have the problem of the italian banks. If we see italy falter, thats what people are more nervous about than france. That will not only have political instability but also financial instability. We have Economic Growth in the eurozone for the First Time Since the crisis. A lot of banks are cleaning out their books and results in the First Quarter of 2017. Things are markedly better. The macro situation is getting better. Italy is an outlyer, it does bear watching. Peter, great to see you as always. Still ahead, grilled on the hill. Airline executives make their way to washington for a hearing about the industrys behavior. Well tell you what to expect. Welcome back. Good morning to you. Lets get you up to speed on market action. Yesterday all three indices in the green until the final minutes when the dow slipped. The nasdaq is likely to outperform the other two again. Were essentially flat this morning. Apple was a big performer yesterday. They report earnings after the bell. To washington, the house panel will hold a hearing today to examine Consumer Airline issues. This comes in the wake of the viral video showing that United Airlines passenger being dragged off the flight. Oscar munoz will be in the hot seat along with other Airline Executives this will surely be colorful, if you to say the least. Tray tables up shg, buckle y seat belts. President trump and russian president Vladimir Putin are expected to speak by phone today. Tracie potts joins us with all the details. Good morning. Reporter good morning. The other big thing in washington, health care, republicans pushing to try to get a vote done this week. Theyve only got a couple days left. Weve been counting who is for it and against it. 20 republicans against it. About a dozen undecided which means Republican Leaders here can only afford to lose two more. Are we going to vote this week . Stay tuned. Reporter today republicans are counting votes on health care. All signs are positive that they do have the votes. Reporter they got two more days to convince nearly a dozen lawmakers to vote yes on a plan that trump insists will cover preexisting conditions. I mandated it. I said it has to be. We want to protect people with preexisting conditions. Reporter but whats on the table now could allow some sick patients in some states to be charged more. Extremely high rates, three, four, five types the normal rate. If done wrong could cause damage to millions. Reporter a vote could happen before Congress Takes a break thursday. The white house is optimistic. Confident in the direction, in this is going. Reporter the white house explaining why the president said he would be willing to meet with north koreas leader. Mr. Trump told bloomberg if it would be appropriate for me to meet with him, i would. Absolutely. I would be honored to do it. Its something no sitting u. S. President has ever done. But the white house says the timing just is not right for that type of meeting between kim jongun and President Trump given the tensions now over north korea and the fact theyre still doing these provocative tests. Also waiting for the news of the philippines president Roberto Duterte and that call with President Trump. Thank you very much. Coming up on the show, the top stories. A round up of Global Markets. Apple earnings. We are joined by ben nis gadenn and later, richard clarida. Youre watching Worldwide Exchange. I love you, couch. You give us comfort. And we give you bare feet. Backsweat and gordos everything. I love you, but sometimes you stink. New febreze fabric refresher with Odorclear Technology. Cleans away odors like never before. Because the things you love the most can stink. And plug in febreze to keep your whole room fresh for up. To 45 days. Breathe happy with new febreze. Good morning. Three es impacting your money this tuesday. Earnings, energy and the French Elections. Jobs in america. India making a big bet on indiana details ahead. And images of microsofts newest surface laptop have surfaced. Its tuesday, may 2, 2017, Worldwide Exchange begins right now. Good morning. Warm welcome to Worldwide Exchange on cnbc. Im wilfred frost. Im seema mody in for sara eisen today. Good morning. Lets get straight to the Global Market action. Yesterday the dow lost about 27 points. S p 500 was flat. Tech continues to be in the spotlight. The nasdaq hitting another record high here looking at futures. Were higher across the board. The dow jones up 19 points in premarket trade. Nasdaq up nine. S p 500 up by 2. All of this ahead of key earnings today. Apple is the big one to watch, which typically hits the tape around afternoon. Spring is the time that apple typically reports earnings. A dividend typically announced. Shares of the big tech heavyweight up 25 already this year, playing a big part of the nasdaqs outperformance. In asia overnight, Australias Central Bank leaving rates unchanged. In china, a private survey showing growth in the factory sector slowing to the weakest pace in seven months. Shanghai composite off by 11 points on the day. Looking at europe, stocks in europe faring mostly well. Were higher by 0. 3 in france. Ahead of the second round of the president ial election. Ftse 100 gaining ground after uk april manufacturing pmi. Italy and spain also in the green. The pound at 1. 28 against the u. S. Dollar. Big news out of hollywood. The Writers Guild of america striking a lastminute deal with the alliance of Motion Picture and television producers. Hollywood writers were threatening to walk off the job starting today if the deal had not been reached. The guild saying they reached a tentative agreement on the ters of a terms of the threeyear deal. At big round of names reports before the bell, including conoco phillips, mastercard, merck and pfizer. After the bell the mother of all earnings reports, apple. On the economic front. The fed kicks off its twoday policy meeting. The big automakers will release april auto sales. Now to indian outsourcing firm infosys making a big bet on america. The Company Announcing it will create 10,000 jobs here in the United States of the next two years. Those jobs will focus on the cloud, Artificial Intelligence and big data. Infosys plans to open four new facilities, tech hubs in the u. S. With the first to open in indiana sometime this summer. Ill speak with the indiana governor and the infosys ceo today at 8 00 a. M. Eastern on a cnbc exclusive. Some stocks to watch today. Shares of ocado are a big mover on reports that the company is considering teaming up with marks spencer. Shares up 7 in the uk. Shares of angies list skyrocketing in the premarket on deal news. Iac buying the company for 8. 50 a share. 44 premium to the Closing Price yesterd yesterday. Iac plans cobin ambine angies with its company. Chinas Ten Cent Holdings announcing it will open an ai Research Facility in seattle to be led by yu dong. The market cap 300 billion. Up 2 today. Bp topping estimate base penny as Higher Oil Prices boost the companys bottom line. They had revenues of 55 55. 8 billion. Shares are higher by 1. 5 now. Checking in on oil this morning. Crude moving higher in early trade following backtoback losses. Wti below the 50 a barrel mark. Its at 49 this morning. Joining us is cnbc contributor, founder of the gartman letter, dennis gartman. In terms of the bullish factors the last couple of days, its all been on tech. Whats your view on that . First, the big number today is obviously the Apple Earnings coming out after the close. What i find fascinating, if you look at what apple is earning and where earnings are coming from, services three, four years ago were onethird of what they earned in ipads. Now services from music primarily are above that of the ipad and above that of the mac. Its astonishing to see whats going on. Apple is not any longer a hightech company. Its now a services company. I think people are missing that fact. We are pricing that stock as if it were a true hightech firm, and its become a bank of sorts and a services company. What about other bullish signals. We mentioned oil prices, which are fairly bearish in terms of the last week or two. But are there icommodities that offset that bearish signal . Lets talk about the oil prices. I find it amusing that people find a rise in oil prices is bullish of stock prices. Falling oil prices are bullish of stock prices. Theres an abundance of supply. Theres a dearth of demand as far as crude oil is concerned. That will continue to put downward pressure on crude oil. Im not bearish at the moment, but im clearly not going to be bullish of crude in any rally that one gets i think you have to sell into. As far as other commodities are concerned, Pay Attention to whats going on in the grain markets. Instead of an abundance of grain, and a great corn troop, a great soybean crop and a small wheat crop, that has changed over the past 54 hours as the weather turned very ugly in the midwest and sent a goodly portion of the wheat crop into the ground, putting it down and for all intents and purposes probably destroying 20 of that crop. Thats amazing. Nobody is paying attention to that fact. I want your thoughts on how politics could impact oil prices. We have an upcoming election in iran. A president ial election where a hard line islamic clerkic is running against rouhani. How could that impact the u. S. Relationship and the price of oil. First of all, rouhani is far from a moderate. The cleric is an old guard, old line khomeini supporter. If he wins the election, that could only diminish u. S. Iran n iranian, audsaudi iranian relations. Its an election few are paying attention to and more should. I agree. Lets talk about the vix volatility incredibly low over the last couple of days. Whats your view on that . Its astonishingly low and reflective of the fact that so many markets are quiet. We are quietly going higher. Slowly going higher. Laboriously going higher, plottingly going higher. As long as that continues, vix could get down to 9. Would i be a seller . No. Would i be a buyer . Not really. If you push me, i guess i would have to be a buyer because eventually volatility will have to obtain. But you will only get out of volatility if markets decline. Its still a bull market. Dennis, thank you for joining us. Time for our top trending stories. Netflix unveiling the first trailer for the fifth season of house of cards. The trailer showing the main character on the campaign trail trying to retain his presidency. The next season of house of cards on may 30th. As soon as i heard this was released, the first thing i did in my car on the way here was watch it. It looks creepy. A dark, underlying tone, which i guess what house of cards is all about. I think the tone has gotten increasingly dark over the last couple of seasons. Its awesome stuff. Cant wait. Something a bit less creepy, kylie jenner breaking the met gala social media ban to share a sle cele celebfilled selfie. She shared a snap from inside the gala bathroom featuring kim, kendall, paris jackson, p. Diddy and more. An active bathroom. They must have mixed gender restrooms, this particular gala. Looks like a fun event. One year maybe you and i will go. One day. The question is what to wear. Fashion is a big part. Samsungs selfdriving cars hitting the streets after the ministry of land, infrastructure and transport allowed samsung to test its vehicles on roads. They are hyundais equipped with camera equipment from samsung. Another competitor in that space. Images of microsofts new surface laptop have surfaced. Using walking cat, the new device has been dubbed the surface laptop. The leak coming just ahead of microsofts big press event in new york city today. We dont have the images. We dont. Hey, you have some neat colors to work with. Shame not to see them. Still to come, talking big banks and cold hard economic lessons from scandinavia. The must reads are coming up. Definitely yours not mine. It is. European markets are also higher this morning. Were back in a couple minutes. Researchs ofhnologies you thatne day, you will. Some call them the best of the best. Some call th veterans. We call themur team. Welcome become to Worldwide Exchange. Most of asia and all of europe were closed yesterday for the may bank holiday. Positive across most markets as they opened up again. Japan open yesterday. Up 0. 7 . A little bit of yen weakness to talk of. Thats helping the nikkei. Shanghai down 0. 3 . We should point out the second private reading of manufacturing pmi was disappointing coming after the initial numbers yesterday. Just something to keep an eye on the fact that gdp the First Quarter outperformed expectations. Broadly positive for european trade. Closed yesterday on a strong week after that first round election result last week. The ftse 1 0 00 is leading the charge. Bp, strong numbers from the oil giant this morning. Oil prices were soft yesterday, they are higher today. About 49 on wti this morning. This comes on the back of the day where we were led higher by the nasdaq. Another record high. Apple up over 2 . They report after the bell today. Facebook reports later in the week. Tech leading the charge in the futures market, albeit pretty much flat. The dow slightly low every, the nasdaq slightly lower. It is time for our mustreads. My pick is in the washington post. Its titled this law could prevent the next financial crisis. Lawmakers want it gone it reads pressure is building on congress to repeal significant portions of president obamas dig sure doddfrank act. Critics are targeting a provision in the law known as Orderly Liquidation Authority which gives the government the power to step in and avoid a systemwise collapse during financial emergencies. The s p sector up 18 since President Trump was elected. Some of these rules were put in there for a reason. Similar to tax reform, if you change it, there are risks. Im not sure the Liquidity Provision they say must be kept are top of the list to be removed. The idea that it would prevent a future leemen brothhms is happening. Im not sure that particular rule is on the chopping block. Certainly a bigger question here in terms of not deregulating too far and missing the point. My pick is titled lessons from the antiglobalist. The lesson of all of this coming off the back of various elections in the past couple of years and the one on the docket at the moment in france, saying the lesson of all of this is something that Scandinavian Companies learned long ago. The regions Small Companies understood openness was the key to Economic Growth and prosperity, but if they were to remain open and democratic citizens had to be convinced that significant citizens would not be left behind. The welfare state thus became integral to the success of the scandinavian countries. They understood that the only sustainable prosperity is shared prosperity. So simply the first round of the president ial election means for europe, the populist and antiglobalist sentiment has passed. There are other steps that need to be taken to make sure thats the case. We have not gotten confirmation of that. His argument is there needs to be a more left leaning welfare state implemented. Lots of people would disagree with that. Hes saying were not over it yet. The lessons from scandinavia. Were approaching the top of the hour. The team is getting ready for squawk box. Becky quick joins us. Good to see you. Woel talk abou well talk about a lot of thifr different things. It is earnings season and well watch for two dow components, both pfizer and merck, you have apple coming after the bell. Well get you set up for all of those things. Plus well take some cues from washington once again. Comments out of washington having a big impact on stocks and business. Yesterday the comments from President Trump about breaking up the big banks, being something that his administration is considering. It was a big shock at first. People stepped back and analyzed the comments more deeply. Maybe not as big of a deal as people had been anticipated. But we have barney frank on to talk with us today, coauthor of the doddfrank regulation. Well talk to him about this deregulation and what he expects to see what happen. Well talk with linda mcmahon, the Small Business Administration Head about her thoughts on what the administration can and is trying to do to help Small Businesses, maybe clearing out the red tape. Talk to her about her plans for that arena. And well talk with dann dimicco, the nucorp ceo. All of this talk with wilbur ross about all the issues that the Commerce Department is facing when it comes to trade issues, trying to get fair deals for the United States. Well get dans comments on what he sees happening in the administration what else he would like to see. Its all coming up in a few minutes on squawk box. Great stuff. Look forward to it squawk box coming up in 12 minutes. The fed kicking off a twoday policy meeting in a few short hours. Joining us is richard clarida. Youre watching Worldwide Exchange. What we do every night is like something out of a strange dream. Except that the next morning it all makes sense. To power global ecommerce Fedex Networks are massive, farreaching and, yes. A little magical. Fedex. Com slash dream i love you, basement guest bathroom. Your privacy makes you my number 1 place. To go number 2. I love you, but sometimes you stink. New febreze air effects with Odorclear Technology cleans. Away odors like never before. Because the things you love the most can stink. And try febreze small spaces to clean away odors for up. To 30 days. Breathe happy with new febreze. Welcome back to Worldwide Exchange. Futures pointing to a slightly higher open, but nothing too significant. The dow up by 20 points. The nasdaq by 9. The s p by 2. Its been the tech heavy nasdaq leading the charge of recent days. The fed getting ready to kick off a twoday meeting. Joining us now is rich clarida from pimco. Good morning to you. From the fed, this twoday meeting, were not expecting anything, are we . Were really not. We had a rate hike at the march meeting. The fed minutes made some news. Well have an important june meeting, but this may meeting will not be eventful. As for the bond market, we saw a tick up in yields yesterday. Are we rangebound in and around the 2. 3 level on the tenyear . We have been range bound. A lot of folks coming into the year we thought we could see a lot of upper pressure on rates. We have not seen this for two reasons. One,i anxiety about the frenk c elections. Markets are scaling back. We are pushing back the timing into 2018 as well. Those two factors are important. What are you opening will be achieved in the next 100 days under President Trump . My goodness. Its like the markets and i would like to see some clarity about basic parameters about what the tax and fiscal package will look like. Thats first and foremost quite important. The budget situation, that can has been kicked down the road into september it seems like a lot of the things most folks thought would be resolved were pushed into the second half of the year. When it pertains to tax reform, reduction in the Corporate Tax rate is good for big companies. What about main street and the retail investor, do you think this reduction in the individual tax rate will be good for main street . Its a good point. Here with tax reform the details will matter. We have a tax code that encourages companies to locate abroad if we get a real Corporate Tax reform like 30 years ago that could be positive for workers. Capital comes into the u. S. Investments. I think the details will be important. Theres a big debate on cnbc yesterday about whether 3 growth is achievement. What is your take . Growth is the sum of Labor Force Growth and productivity. Labor force growth is slow because of the aging population. So you would need a big pick up in productivity. The good news is that weve gone through a soft pack in productivity, and theres some sense to think we could get some increase in the future. But 3 will require a big increase in productivity that so far we have not seen. You are encouraged by the International Growth picture . And what it means for the United States . Thats a great point. Probably the biggest change in the Global Economy in the last 12 months has been outside the u. S. , weve gone through a soft patch in 14, 15, 16. And now europe is surprising on the upside, brazil and russia are surprising. The Global Economy is not going bang busters but is operating at a better pace than a couple years ago. Asian markets trading at a 22 month high. Back to the u. S. Economy. Stocks in general. One notable characteristic has been the outperformance of growth over value. The Technology Sector up 13 already this year. Apple at an alltime high. Does that continue to the end of the year . My crystal ball is not perfect, but earnings is key to any equity valuation. The earnings momentum is strong. Obviously theyre the best of the u. S. Theyre cutting edge companies, innovative. I think thats a positive story for sure. Rich, meantime dment fcommene u. S. Dollar. Unwound its post election gains. From here, whats your view . Theres upward pressure on the dollar. The fed will be hiking. I expect some pick up in u. S. Growth, probably a big pick up in the Second Quarter compared to the first. I think its supportive of the dollar. But we had a big move in the dollar the last couple of years. The euro moved by 20 , 30 . The yen, em currencies. Its more of a grind higher than a big pop in the nearterm on the dollar. Just fijl lfinally in terms deregulation view, we had talk about that yesterday from President Trump, possibly on the reregulation front. What are you expecting . Is it a big swing factor for markets . The banks stock prices shrugged it off by the end of the day. Thats a great point. The president talked about thinking about bringing back the glasssteagall that would require legislation. I dont expect that will be happening soon. I think they have other priorities. In terms of deregulation, we will see more of that push, especially as it impacts Smaller Banks in the u. S. Rich, thank you very much for joining us. You got it. Rich clarida of pimco. Only about a minute left. We want to highlighted a few things to watch. This afternoon, apple reports, and earnings will be out. All of the tech sector continues to outperform the nasdaq leading the charge once again yesterday. So all eyes on the nasdaq again, but also whether the others can catch up today. Thats it for Worldwide Exchange. Thanks for watching. Squawk box comes up next. Thanks for loading, sweetie. Oh, burnton gravy . Gotta rinse that. Nope. No way. Nada. Really . Dish issues . Throw it all in. New cascade platinum powers through. Even burnton gravy. Nice. Cascade. Markets now, futures trading higher ahead of a flood of earnings reports. And wall streets fear gauge hitting a tenyear low. Well talk about a full market rundown. And wall street shake up. President trump says he is considering breaking up the nations biggest banks. And also breaking overnight, negotiators reaching a dastminute deal to avoid a Writers Strike in hollywood. Its tuesday, may 2, 2017. Squawk box begins right now. Live from new york where business never sleeps, this is squawk box. Good morning, everybody. Welcome back to squawk box, we are here at the Nasdaq Market site in times square. Im becky quick along with Andrew Ross Sorkin and melissa lee. I heard that song, i wasnt sure if they said the show could go on or the joe could go on. Yesterday was a mixed day for the markets. Not too far directionally moves, but the nasdaq had another new high yesterday. He are looking at green arrows with the dow futures indicated up 25 points. S p futures indicated to open up higher by three. And the nasdaq also projected to open up high. Wall streets fear gauge hitting a tenyear low of 9. 9 yesterday. The lowest level since february of
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