Ahead. Good morning. A warm welcome to Worldwide Exchange. Im wilfred frost. Lets check in on the markets after a significant selloff yesterday. We lost 20 points to 30 points on the dow right at the close. Down 1. 4 , having been down 1. 2 for most of the final few hours of trading we were down 363 points. In the midmorning the dow was down about 400 points. The s p was down more than 1 . The nasdaq down just less than 1 10 out of 11 sectors were lower yesterday. Healthcare and energy were down around 2 . But month to date the returns are impressive in this final trading day of january the nasdaq standing up around 7 even despite those couple falls, and the dow is up this morning 74 points, the nasdaq up 20 points, and the s p up 9 points in the premarket tenyear treasury note, still above 2. 7. That crossing of the 2. 7 happening with yields rising, something that has concerned some equity investors. Yields about 2. 7 still this morning. President trump striking an optimistic tone in his first state of the Union Address last night. This, in fact, is our new american moment. There has never been a better time to start living the American Dream lets get to eamon javers with more on the president s big speech good morning to you. Good morning. This has been an unorthodox presidency but a traditional state of the Union Address from the president , laying out some policy objectives for the new year and hitting some emotional high notes in terms of the people in the room as icons of america. He also talked about the stock market heres what the president said on that front. The stock market has smashed one record after another, gaining 8 trillion and more in value in just this short period of time. The great news the great news for americans, 401 k , retirement, pension, and College Savings accounts have gone through the roof the president also talked about some successes hes had in terms of bringing American Companies back to the United States heres what he said there. Chrysler is moving a major plant from mexico to michigan. Toyota and mazda are opening up a plant in alabama, a big one. And we havent seen this in a long time. But now they are roaring back. Theyre coming back. They want to be where the action is they want to be in the United States of america. Thats where they want to be the president hitting some business successes pivoting off the tax cut bill at the end of 2017 looking ahead to an infrastructure bill this year that he said would be 1 1. 5 trillion a half trillion dollars bigger than we were led to believe the president was contemplating. Well see whether that can get through congress theres questions on whether conservative republicans will vote for a spending tack cage that b package that big its an ambitious goal for 2018. The president having some of those moments that you also see in state of the Union Addresses. Republicans on their featuring time and time again. Democrats sitting stonefaced through a lot of it. You could feel some of the tension in the room. Lets touch on one topic in particular in terms of how it was received by the republicans and democrats in terms of daca he went through, you know, the four pillars of why he thinks he can get to reform on that and framed it as saying its a split down the middle of what the two parties traditionally work does that work now if they dont reach a deal can he realistically blame the democrats for it ra to he was offering a comp, he was saying we should have a de deal, but at some point the democrats were hissing the president as he talked about immigration and chain migration as he calls it into the United States so the question is whether theres an underlying political basis for a deal here. The president would like to move on past the daca debate, the deferred action for childhood arrivals those are immigrants who arrived in the United States brought in as Young Children by parents with no say of their own thats a special class of immigration carved out republicans and democrats say they would like a deal well see if they can do it. We mentioned the economy, the stock market, what about north korea, isis, taliban and the commitment to afghanistan. Will that be taken as an uplift in terms of potential spending in areas like defense moving forward . I think it might or the status quo he talked about having more spending in the defense area the president is proud of the progress that the United States made against isis in terms of the territory that isis occupies in syria and iraq. He also highlighted in an emotional moment a north Korean Defector who was in the chamber last night who stood and raised his crutches over his head in a triumphant gesture that was a high moment for the president , talking about the divisions between north korea and south korea and what americas path forward there might be that will be a touchy issue that he will deal with in 2018. Both sides seeming to be at a hair trigger there some people say it was low energy, do you agree with that or was he slowing it down to milk some big moments . I think the president delivered the speech slowly. It was about an hour and 20 minutes overall. He took a lot of breaks for applause he took a lot of pauses as he delivered the words. He delivered it in almost a neutral tone there wasnt the soaring rhetorical uplift that we see sometimes. It felt deliberate to me it felt like the president walked through this a number of times. We know he practiced in the days leading um to the speech the timing, pacing all the of that was exactly what president wanted to deliver. It felt very much intentional. Eamon javers, thank you very much. Lets turn back to the markets. That global selloff we had yesterday. We already had a look at futures pointing higher this morning coming off the back of that decline yesterday. 1. 4 for the dow the s p down just more than 1 the nasdaq down less than 1 asian equities are mixed today hong kong hanging on to its extraordinary month. We say the u. S. Markets have been strong, hong kong looks to end up 10 the rest of the markets are lower. Japan down 0. 8 . European trade for you, down close to a percent yesterday, its holding on to slight gains today. Bouncing back from yesterday about a percent of losses for the ftse 3 of gains for the cac in france oil prices were off 2 yesterday. Thats why energy and healthcare were the worst performing sectors in the s p down again today 0. 6. Month to date oil prices up 5 to 6 . Dollar board for you, its not been a factor correlating in either direction with the selloff in equities. Slightly higher on monday, slightly lower yesterday and slightly lower again today gold prices down yesterday up a bit today up about 2 for the month of january. Lets talk more about the markets. Joining me is art hogan from b. Riley fbr. Good morning to you. Yesterday clearly a selloff. We closed down 363 points. Sum up why you think we had that twoday selloff and whether you think it will continue for the rest of the week its interesting. Theres three things when you look at it, the largest canary in the coal mine is the yield on the tenyear. We broke out of the 3. 66 sorry, 2. 66 resistance you went immediately to 2. 7, 2. 71, 2. 72, the contemplation of that works into investors psychology we start thinking equity risk premium. At what price does the tenyear offer a better or more enticing investment than stocks i dont think were close to that but the rapid move weve seen suggests that. We doubled off the 1. 3 yield over two years ago theres been a significant move up, but i think were overreacting the second thing is more important. We got off to such a strong start in january the first three weeks certainly not something we can annualize looking at last fridays close, you are up 90 on the year on the s p 500. I dont think anybody thought we were getting there too far too fast and earnings earnings have been great low double digit earnings on the s p 500. Much better than expected guidance on a case by case basis, trying to deal what tax reform means, its been noisy in a market thats been priced for perfection those are the three main causes. Off to a fast start, slow creep up in yields, and earnings season adding noise. What did you make of the state of the union last night . In particular the reaction from the parties, and what it means for the hope of whether the president can get the next big items on his agenda done, things like infrastructure. Thats the key. Its a bit of a pep rally and a victory lap for the president. Having gotten tax reform done. Doing work on regulation those are the victories they can lean against talking about the future is much more important probably not enough detail about infrastructure we have to get through a budget process. We have a resolution that runs out february 8th if youre going to get close to infrastructure, we need that budget set theres a great deal of promise, but 1 1. 5 trillion over ten yeas could be important for the Industrial Companies and the amount of defense spending very important for a lot of the aerospace and defense companies. Theres some real positives, but it was more of a victory lap than substantive about policy movements in the future. Oil has had a great month of january. Quite a significant pull back in the last couple of days. The correlation between wti and the dollar has been tight in this move up a good chunk of whats happening in the move is Global Economy has picked up. Very much like the market, it probably got ahead of itself, probably has to pull back. The dollar firms here. We will settle in. The new range in the 55 to 65 range, and i think thats positive for energy companies. Art, thank you very much for joining me japans fuji film is buying a majority stake in xerox. Landon dowdy has the details fuji film will take over xerox and combine it into their joint future called fuji xerox the new entity will be 51. 1 owned by fuji film and keep xeroxs listing on the nyse. Share holders will receive a Cash Dividend. The deal comes amid sluggish photo copier demand and a drive to cut costs in a News Conference the fuji film ceo says the deal does not deplete our cash saying the company will continue to pursue mergers and acquisitions aggressively the deal comes as xerox has been under pressure from carl icahn and darwin deesen to explore a sale shares of xerox up 6 in early trading. Up next, the fallout grows for Steve Wynn Las Vegas gaming officials launching an investigation into allegations of Sexual Misconduct against the casino mobile. And reaction from abroad to president trpums state of the Union Address. This is a tomato you can track from farm, to pot, to jar, to table. And serve with confidence that its safe. This is the ibm blockchain, built for smarter business. Built to run on the ibm cloud. Tyou know whats not awesome . Builtgigspeed internet. Ss. When only certain people can get it. Lets fix that. Lets give this guy gig really . And these kids, and these guys, him, ah. Oh hello. That lady, these houses yes, yes and yes. And dont forget about them. Uh huh, sure. Still yes xfinity delivers gig speed to more homes than anyone. Now you can get it, too. Welcome to the party. Welcome back to Worldwide Exchange. Im wilfred frost. If youre just getting up, heres a look at the market picture. Were expected to bounce back today. Up 61 points in the futures market for the dow nasdaq up 16 s p up 7. 5 yesterday the dow was down 1. 4 . The s p down more than 1 . The nasdaq down just less than 1 treasuries have been cited as a factor, rising yields. We were at 2. 73 yesterday, 2. 70 the yield on the ten were today. Stocks to watch. Samsung reporting record annual profits driven bay memory chip super cycle. The comment expects demand to remain strong and sam shunsung announcing a 50 1 stock split. Nintendo raised its fullyear guidance thanks to the switch there was better than expected operating profit, up nearly four fold from a year ago they expect to sell 20 million switch units in 2018. Electronic arts Third Quarter results beating forecasts. The Company Expects sales of its newest title, ufc 3, to make up for the underwhelming response to the star wars game. In other corporate news, the nevada gaming control board has opened an investigation into steve wynn, this follows a bombshell wall street journal report that accused wynn of decades of Sexual Misconduct wynn has denied all allegations calling them preposterous. Wynn operates a major hotel and casino on the strip. Shares of wynn this morning are up slightly, but had a sharp fall over the last couple of days several economic releases on todays wall street agenda the latest adp employment report, followed by the Quarterly Employment cost index at 8 30. At 9 45, january chicago pmi, december pending home sales at 10 00. The fed wraps up its twoday policy meeting this afternoon with a statement planned for 2 00 p. M boeing and eli lilly report before the open. At ts,facebook, mondelez and call c qualcomm are after the bell. As we head to break, another check of futures pointing higher. Back in a few moments. Tonight, im asking congress to pass legislation to help ensure American Foreign assistance dollars always serve american interests, and only go to friends of america. Not enemies of America President trump sticking with his americafirst policies during his state of the Union Address. Lets get the International Reaction to the speech joining me now is Peter Spiegel from the financial times. Good morning to you. Ive been looking at the ft website and different headlines that come off the back of the speech theres a mix from, you know, words disconnected from actions versus, you know, celebrating his economic record and giving olive branches to the democrats. Is it split, the interpretation from the speech last night in europe we got a bit of a preview of this last week in davos. He gave a public sort of pro internationalist rhetoric. Also touting his economic record in davos, corporate heads were happy about the tax cuts there is this feeling that there is a disconnect between what he says and does. Particularly internationally and in europe, he was aggressive antienvironme antienvironmental, antiClimate Change even in the u. S. , we have this republican memo that is supposed to come out of the house intelligence committee, trying to sort of politicize this whole russian investigation. We also have a story that went under the radar screen, the nominee for ambassador to south korea, had his nomination withdrawn because hes protested against what seems to be a march towards war with north korea its one of those things that a lot of people have become sort of immune to his rhetoric. Theyve seen what he does. People are watching what he does more than he says because there is a disconnect between davos and now the state of the union and the facts on the ground. I read the British Press and follow it closely. I always felt the message that comes across there is closer to the sort of cnn version of events than the fox version of events would you say in the last two, three months peoples views are softening a bit towards the president . Its not quite such a hard line antipresident view in uk and europe or is that not fair . I think you have to separate the uk from the rest of europe given the special relationship, there always tends to be more pro americanism here than on the continent. You have elements of the tory party, Boris Johnson and hard brexiters who are happy with trump in the white house many of the base for the hard brexiters here in Great Britain are a similar base to what trump plays to in the uk most i think still of the uk voters and on the continent are hard line antitrump they dont see him as what they come to expect from the u. S. That comes to play i continual postponement of a trip to Great Britain theres political wrangling of why he didnt show up. He said he doesnt want to visit the embassy because they got a bad deal the underlying concern is that trump believes he will not be hailed as a hero here. He wants the pomp and circumstance, but we know there will be millions of protesters on the streets once he shows up. Theres elements of the tory party who are happy and softened their line, but the vast majority of people are still antitrump Peter Spiegel, thank you very much for joining its. Still ahead a round up of the top headlines and another check of the global markets. Well tell you what to expect from todays fed chair meeting e. How did edward jones come to manage a trillion dollars in assets under care . Jay. Sarah. So i have a few thoughts on that early retirement. By focusing our mind on whatevers on yours. The state of our union is strong because our people are strong President Trump talking tax reform and the economy in his first state of the Union Address. We have a full wrap up of his comments bouncing back. Wall street pointing to a higher open after yesterdays selloff. And focus on the fed janet yellen making a final Rate Decision today as fed chair. Well tell you what to expect. Its wednesday, january 31, 2018 youre watching Worldwide Exchange on cnbc. Good morning a warm welcome to Worldwide Exchange on cnbc. Im wilfred frost. Lets have a quick check in on the markets. Futures pointing higher after a big selloff yesterday. Down 1. 4 on the dow, more than 1 on the s p. The nasdaq down less than 1 we are still sharply higher for the months as a whole. J