Earthquake rattling california, the strongest quake in two decades. And trouble for big tech names out there. Apple and facebook both experiencing outages over the fourth of july holiday its friday, july 5th. Worldwide exchange begins right now. Good morning welcome to Worldwide Exchange. Im dominic chu. Brian sullivan is off today. Here is how your money and the Global Markets are setting up. Stock futures now pointing to a slightly lower open. The dow will go down by 38 points if these futures losses hold into regular cash trading you can see the s p off by 5 points the nasdaq down by 10. The bond market right now in focus ahead of that big jobs number in the United States. Tenyear u. S. Government note yields ticking slightly higher, just a hair below 1. 97 . 1. 78 for the twoyear note yield. On the european side of things, worth noting whats going on with the european bonds especially the german tenyear government bund. You can see there that bund trading at negative 39 basis points negative yields, though slightly higher there the tenyear gilt in london 69 basis points joining me now is sven hendrick. We set up the global picture ahead of a huge jobs number coming up. What exactly is the market set up going into this do you expect any big Market Reaction out of todays jobs number the market obviously watches now the nfp report in regards to the Federal Reserve, because all eyes on the fed in july, whether theyll cut, how much are they going to cut, whether its 25 basis points or 50 basis points. So depending on the reaction to that, we may see some up or down princip im fascinated by reaching these new highs despite the complete collapse in global yields. The tenyear is down to 1. 95, 1. 97 , 40 below where it was in november no one had predicted this. All the economists were looking at 2. 5 to 3. 5 for 2019. It hasnt happened and so we areseeing basically kind of what weve seen in past cycles when cycles come to an end, we have low unemployment, we still see markets making new highs, all these warning signs are being ignored. Dropping of yields, inversion of yield curves, growth slowing, all of these things which were currently seeing not only globally but in the u. S. That all sounds negative, sven doesnt sound like youre positive does that mean yields globally could still go down more as people fly to the safety of government bonds in the face of what you call that slowing environment . Well, the thing is, were not at new highs because of Earnings Growth or revenue growth, but its because of the drop in yields and Central Banks are once again cutting rates and adding more stimulus that has to be concerning to everyone for ten years weve been promised growth to come. We have the longest expansion on record, but its also the slowest expansion. Its come at a steep price debt to gdp increased from 65 to 105 . We hahave trillion dollar defict and growth is slowing. The fed promised inflation targets. The dotplot has turned into a fantasy plot it never worked out. The only thing theyve been able to do is asset inflation asset price inflation. Not inflation in the real economy as they measure it none of the Central Banks have normalized so were sitting at 225 basis points on the fed funds rate theyre looking to cut again im sorry, but theres a big gap in narrative that is a problem. Obviously at the end of the day we keep repeating the same cycle over and over, which is lower rates at the end of each fed rate hiking cycle. Were adding more debt and producing marginally less growth each time around well cut rates again. Does that mean you fight the fed . You fight the ecb, you fight these easing authorities . They have a lot of fire power, and at this point markets keep making record highs. Do you buy these highs because the momentum still goes higher or are you waiting for a pullback its a very good question theres no doubt this must be fully acknowledged, Federal Reserve and Central Banks have once again in 2019 demonstrated their power in markets they keep managing to come in whenever there is a pullback, you see speeches by central bankers such as Jerome Powell come in as he did at the beginning of june, markets were correcting, he came in with a speech and prices here back at new highs. So its a very difficult environment to navigate. Its al none of these new highs have been confirmed on the indexes m stocks are not participating in this from a technical perspective im looking at the price range between 2990 to 3050 theres a lot of technical resistance ahead of us here. And if markets cannot sustain a move above that, then were looking at what is called a broadening wedge pattern its basically a megaphone if markets cannot cross above this trend line that im showing on this chart and sustain a move above that, the technical pattern, if the fundamentals which are telling a different story bear out, we can target the lower trend line which is around 2100 to 2200. Thats a different story its basically confirming what the bond market is already saying the tenyear is now back to levels of the u. S. Election in 2016 this is where those prices would be heading to. Got you a critical time in the markets always appreciate it thank you for those thoughts another big company is talking about the impact of the u. S. china trade war today Frank Holland has news from samsung. Good morning. Samsung warning Second Quarter profits are expected to drop by 56 . This would be the Third Straight decline in quarterly profit. Operating profit is forecasted to drop to 5 5. 5 billion, it still beat analyst estimates due to oneoff gains from the display business the company says sluggish demand for memory chips is only being amplified by the ongoing u. S. china trade war analysts say a worldwide oversupply in smuemiconductors n tariffs on huawei have contributed to this. Some analysts predict the chip sector will not recover until the second half of 2020. Check out lg electronics, they fell 5 on disappointing results. Sk hynix dropping 2 this is an interesting take only because its the next step in another chip Company Warning about whats happening is there a broader theme that we should think about in regards to whether smukte esemiconductors e that leadership for the market do they still provide the linchpin for everything working out to the upside overall . Tech is not going anywhere, but this u. S. china trade war has a global ripple on all types of companies for samamsung, they are also facing tensions with japan consumer demand for products they go into, that has also declined thank you very much when we come back, well head to beijing and hear why china could stop buying goods from u. S. Farms. Wait, as we head to break, check out oil prices this morning. You can see ice brent crude futures just about flat. Wti down 1 . Still ahead when Worldwide Exchange comes back after this break, more on the market moves today. With tough food, your dentures may slip and fall. Fixodent ultramax hold gives you the strongest hold ever to lock your dentures. So now you can eat tough food without worry. Fixodent and forget it. Live shot of hong kong right there. Theyre closing down their day as were getting ours started on Worldwide Exchange. Welcome back to the show good morning stock futures are coming back from the hol lay sligiday sligh. The dow could open down by 26 points thats an improvement. The s p off by 4 points. The nasdaq down by 8 on the trefasury side of things were seeing the tenyear treasury note yield at 1. 965 . The twoyear treasury note yield at 1. 78 in trade war news, an important china state media blog is warning if the u. S. Flipflops on the talks, beijing will hold off on buying more u. S. Agricultural goods. Eunice yoon has that story i thought this was a done deal here they were going to buy more stuff, especially on the farm side of things not necessarily this blogs anonymous author is believed to have special insight into beijings strategy for negotiating on trade the author posted a commentary today saying if the u. S. Flipflops in the negotiations, the promises to buy american Agricultural Products will also be overturned. This piece comes after the hong kong newspaper had quoted sources as saying that china was holding off on buying american Agricultural Products because it wanted to fest gauge what the white houses policy would be towards huawei exactly whether or not its going to ease restrictions on the National Tech champion the Commerce Ministry on thursday had flagged beijings concerns that the u. S. Might not make good on what the chinese see as President Trumps promise. So the Commerce Ministry said u. S. Companies should be allowed to sell to huawei right away in addition the ministry has been stressing the u. S. Needs to make sure it lifts off the tariffs. This is one of the preconditions for the trade talks. The trade Representatives Office said the two sides are going to be arranging a phone conversation for the top negotiators as early as next week and for the chinese, it looks very much like the fate of huawei is quickly moving up to the top of the agenda. Dom . I thought huawei and trade were separate. How much is this going to be really centered on whether or not there can be just one sti Sticking Point in huawei resolve before anything goes forward with trade talks it used to be things like int le intellectual property and forced tech transfer. The u. S. Has stressed before that huawei was going to be a separate issue from the trade talks. Since the weekend its become quite clear from the chinese side they believe huawei is front and center in the trade talks. I think thats probably going to make things a lot more complicated in the discussions if they do happen next week. Eunice yoon, thank you very much for that update appreciate it. Still on deck, not one but two Major Tech Companies facing outages in recent days why facebook and apple left users wanting their photos back. Wlddexcngngyou are watchi orwi ehae on cnbc did you know you can save money by using dish soap to clean grease on more than dishes . Try dawn ultra. Dawn is for more than just dishes. With 3x more grease cleaning power per drop, it tackles tough grease on a variety of surfaces. Try dawn ultra. Its how we care for our patients like job. His team at ctca treated his cancer and side effects. So job can stay strong for his family. Cancer Treatment Centers of america. Appointments available now. Cancer Treatment Centers of america. danny after a long day of hard work. You have to do more work . Every day youre nearly fried to a crisp, professionally can someone turn on the ac . no . Oh right. cause there isnt any. Here vo automatically sort your expenses and save over 40 hours a month. Without you, we wouldnt have electricity. Our hobby would be going to bed early. vo you earned it, were here to make sure you get it. danny its time to get yours vo quickbooks. Backing you. Live shot of our nations capit capitol. The rotunda there lit up the s p 500 Technology Sector hitting a record close heading into the fourth of july holiday. So what is in store for the industry as we kick off the second half of the year . Here is skrojosh lipton with yo second half playbook reporter even with the looming threat of a trade war, tech is the Top Performing sector so far this year. Heres what else to watch for in the rest of 2019 first, new iphones tim cook tells cnbc that the iphone xr has been his top seller, which is the least expensive of the phones launched last fall. That means this fall when the new lineup is introduced, he might focus on more mid tier phones two, jedi. The u. S. Department of defense is deciding which company will win a big Cloud Computing contract called jedi, worth up to 10 billion. The winner could be announced as soon as august amazon and microsoft are in the running. The winner could use the deal as a selling point convincing companies and other data Sensitive Industries to entrust it with their information too. Three, regulation. State, federal and International Regulators all have tech in their sights, including ans goi alphabets google. That could be a challenge as the companies hunt for growth and one their chinese rivals dont Face Technology has been powering the gains in the s p 500 this year in more tech news, apples icloud experienced an outage yesterday. Users reported ongoing issues with features including calendars, contacts, reminders customers noted the outage even impacted services at the physical Apple Retail Stores it is the second widespread outage for apple this year apple was not the only company dealing with trouble facebook users were locked out of features on facebook, instagram and whatsapp for a large portion of the day wednesday. A spokesperson confirmed the issues were resolved by wednesday evening. This followed a similar outage across platforms that happened back in march. More regulation could be coming for facebook, this time from france. French lawmakers approved a measure yesterday that would fine the social media giant if it fails to remove hate speech within a 24hour period. The bill still needs to pass the french senate, but president Emmanuel Macron is in favor of the measure. Shares currently down fractionally coming up, President Trump delivered a salute to america yesterday, but the event was not without controversy. A live report from washington, d. C. When we come back after this break i have one kid in each branch of the military, but im command central. Its so important to us that verizon is supporting military families. When i have a child deployed, having a Reliable Network means everything. So, when i get a video chat, and i get to see their face, its the best thing in the world. And ive earned every one of these gray hairs. Military moms, we serve too. vo the network more people rely on, gives you more. Like military plans with a special price on unlimited, 100 per line, and big savings on our best phones when you switch. Thats verizon. In political news, President Trump took the stage in front of the Lincoln Memorial yesterday delivering a fourth of july speech in the rain to celebrate the military and american history. Craig boswell joins us from d. C. With that story. What exactly whauz tas the final takeaway it was fairly apolitical, right . Thats right. Now we have the president talking about sticking to the theme with a heavy focus on the military now the costs are being brought into focus and theyre still being tallied today. Flyovers, a rare sight in washington, d. C. A key part of President Trumps salute to america. As were tanks and troops speaking from behind rainsoaked bulletproof glass, the commander in chief focused on the military we celebrate our history, our people, the heroes who proudly defend our flag. The brave men and women of the United States military many noted the president stuck to the script. I wish that this was more about the people not about the person that is in the white house. Reporter adding up the cost to the taxpayer may take some time its something the white house down played. Today the Washington Post reporting the combined hourly cost of the two dozen aircraft in the flyovers at 450,000 an hour, thats using Defense Department reimbursement rates this will cost millions of dollars more to do this type of extravaganza, if you will. Could those resources be devoted it other situations that might make more sense . Reporter the celebrations on the mall not without pro tests the baby trump blimp making an appearance near the white house, a scuffle surrounding two people setting fire to the flag on this day, 243 years ago reporter eyes turned to the skies after dark for an extended firework that Fireworks Show lasting more than 30 minutes, but the costs will continue to be debated. Thank you very much for that. Coming up, dont be fooled by the holiday week. Its still jobs friday well talk Market Expectations as we count down to the very big main event when Worldwide Exchange comes right back theres everything from happy to extremely happy. Theres also angry. Im really angry clive actually, really angry. Thank you. But what if your business could understand what your customers are feeling. And then do something about it. Turn problems into opportunities. Thanks drone. Customers into fanatics change the whole experience. Alright who wants to go again . I do i do i have a really good feeling about this. It is jobs friday. This employment report could be a game changer under the microscope why a major european regulator is looking at amazons investment in food delivery. And Joey Chestnut for the win. The reigning na ining nathans h eating champ did not disappoint. The video everybody will be talking about today. Its friday, july 5th. Youre watching Worldwide Exchange on cnbc. Welcome back to Worldwide Exchange. Im dominic chu. Brian broin hsullivan has the df today. We are halfway through the 5 0