Steepening and broadening and a lot more this is one of those rallies that not only is taking people by surprise, but continues to roll and were seeing major gap ups i was mentioning on squawk major gap ups in the morning more of the 1980s action and its very interesting because stan talked about his views of the 1980s and theyre pertinent as ever. We have incredible and we have a president who wants new highs and we have stocks that are recovering well ahead of the fundamentals but some people can say that is what should happen look at the airlines we are hhad some numbers from pl lebeau and almost as if people decided covid is over and its a vshape rally and you better get on board and that makes you a little uncomfortable. Well, i just think that the friday rallies, as sweet as it was off the unemployment number has not put out any sellers, carl and i often think that there have to be sellers at a certain level. I mean, can you really take the banks up so much when there was so much
Good morning a warm welcome to Worldwide Exchange here on cnbc im wilfred frost. Lets get straight to the market picture. We did see yesterday the s p flat, the dow down about 0. 15 the nasdaq was up, 0. 2 . Theres been some concerns of a selloff. Weak to date were only down half of a percent for the dow and s p. The nasdaq is down a full percent. Its not that bad given the great runs of late this morning bouncing back, nearly 40 points higher for the dow. The s p up 5 points. The nasdaq up 25 points or so. Lets look at europe it was down yesterday, but not too badly. Having sold off more meaningfully at the start of the week germany up a half percent. About a quarter of a percent of gains for the uk and france. Asia in the eye of the storm yesterday with quite significant declines lets get more on the markets in asia from Nancy Hungerford she joins us from singapore. Hey, nancy thats right. A different story here for asian equities lets start with the comeback story, the nikkei 225, h
Angeles. It is time to get to the markets. We are 30 minutes into the trading session. Abigail doolittle is here. Abigail we are looking at a relatively bullish start. The dow is now higher for a six day in a row, putting it at another alltime high. The s p 500 moved down fractional yesterday, so we dont have a record high yet. The nasdaq since late november, but bullish action. And a man thinks we are going to continue to gain right into the end of the year on two factors, the possibility of future and cast into the u. S. On tax reform that could come back in the form of dividends, plus buybacks, then earnings. He thinks 2018 will be very strong. It now into the bloomberg, seeing what is setting up from a short perspective, bearish bets on the market. This is 5568. The put open interest on the s p 500 ultrashort etf. But is a very spent on the s p 500 that is a bearish bet. The calls are going skyhigh, the business investment, investors are bearish on the s p 500, Retail Investors and
Im wilfred frost. Lets get straight to the market picture. Some record closes, but slight gains yesterday. We are seeing slight pullback in terms of that tone this morning. Down about 38 points for the dow. Nasdaq down 8. S p down about 4 points. Week to date we are showing slight gains for these three main indices that hides another story that people are pointing to, the small cap decline. Lets look at that very quickly. Week to date, bouncing back a bit, but that decoupling from the big cap stocks has garnered attention. People suggesting does that show weakness in the economy to come . I think its different from that its fears of tax reform slipping, and we know those small caps are geared to that. To paint that picture further, lets look at banks. Banks are also geared towards the tax reform they have slipped over the course of the week banks performance coming up now. Bank of america has slipped during the course of the week. Similar decline as we saw in the small caps extrapolati
Decline but negotiations continue between two Food Industry giants. Unilever rebuffing merger proposal from kraft heinz in what would be one of the biggest deals ever. Plus stocks pull back. Was the record run for the dow and u. S. Markets overly bullish . And four weeks since taking the oath of office, President Trump tries to focus on jobs and manufacturing. Hell visit a boeing plant in South Carolina later this morning. First up though, kraft heinz looking to create a consumer powerhouse confirming it has made a takeover proposal to unilever. The initial proposals been rejected unilever saying it undervalues the company. But kraft says it looks forward to reaching an agreement with unilever, adds of course theres no guarantee one will be reached. We finally have some numbers to work with, david, and im sure you got so color behind that. Yeah, luckily able to speak to some people who, you know, at least are familiar with whats going on here. Why are we learning about this . Well, sto