Again and bet, bath, and beyond with the street gone its thursday, july 11th and World Wide Exchange begins right now. Good morning awelcome to World Wide Exchange. And dow higher by 54 points and s p higher by almost six points and the nasdaq almost 20 weve been at this level for most of the morning. We have the dow, the s p 500 in the nasdaq and not necessarily closing there, the nasdaq dedid and trauszs for the First Time Ever so that was good, crossing 3,for the First Time Ever. Didnt actually close there. Its relatively quiet today although we did see some yesterday as oindicated a raich kit was coming maybe 50 basis points. But right now the yield on the 10year is sitting at 2. 0. And thats see what the action looks like its green, basically all the way around the world with in asia as you can see higher by a 1 2 a percent and the south korean cospy added on a whole percent and change were green across the board as well like yesterday the strongest action up 7 10 off a percent but green across the board Jerome Powell in the spotlight again. He said the central bank is committed to keeping the u. S. Economy on track heres what he said yesterday. We see the economy as being in a good place and were committed to using our tools to keep it there. As we discussed the overall economy is performing reasonably well what we see is cross currents, princeinally concerns over global gloegt and see them at the last moting saw those as weighing on the outlook and calling fl pausely ermore adaump kative policy. Well with, pally went back the hill before shy tiefed also a former advisor in dallas. Good morning great to be here. Very active couple of of days many members of the committee its all about that one word many were lin agreement. Lets cut these rates. Were fixated on the word many two meetings ago there was all this discussion that there was descent and why was there this disagreement . And now its obvious they have made protective effort because it was reiterated in the minutes including powell leading the charge so we went from descent on the committee to absolute cohesion we completely priced out a 50 basis point rate cut going to yesterdays statement and all you for to do is dpeet 50 basically. We have eight days yeft. Theres not much anybody can say or do until now until the fed is locked into whatever theyre going to do on the first because they cant say anything after a plaquout ends in eight days chairman powell when ask changed the feds opinion on what they had can decided previously. Dproors you think thats true . And hes right. There were over 300,000 people who took on second jobs. That was well over the headline number weve seen average weekly earningings decline from a growth rate in january 2. 7 . A leading indicator fall off weve seen the average work week begin to shrink. So all the indicators fell you to fade the headline and there it are reasons that new york feds probably index rolladex. This is indig itative of the fact that curin. You watch the bachelor and bachelorette and talk about the right reason i can see the glass half fool, and i can esoothe reasons for the glas mofl foul but everything you could put on a front page of a newspaper loongs fantastic weak 3 edp print and companies panicking ahead of what they thought were with going to be more tariffs trying to stock mielt and were seeing demands and thats what they called ever obviously hes are in charge of u. S. Monetary policy do you think thats a main reason why the markets are potentially at a 50 basis. Look, western car sales were gone thinking to china car sales up for a second mungtd. We were so excited about making the markets hpy but the problem is if they come in and continue to take rates in deeper and deeper territory theyre going toing have to defend make sure that dollar doesnt get too strong as other countries start to take care fwhagt to previous territory we get to our own zero balance so hes going to back today. Message, same wording. He was so consistent about the day. When pressed on difficult questions, he was asked did you eat shelton, the fed nominee he does not want toancefer it he siz out right this is not my purview. I thik there will be a lot more drama out of the second day of testimony. But i would expect him remain it and the potential global coun draft is that is weighing and thats the one thing he mentioned was Business Investment itself started to get hurt and we saw that in the Small Business survey that came out tuesday morning. I think that we will see a continued message from him that the markets are going to continue to endure very interesting testimony. He was asking multiple ways and just said thats in your camp, not mine he shadow boxed with the best of them yesterday and it was real i think they would prefer to take december back, that one policy error back and can call it a day and say were going to keep our boisz boints of ammunition right well, thank you for being here with us this morning well, a developing story in the middle east. U. S. Officials say five armed boetsz believing to belong to the Iranian Revolutionary guard, tried to grab a tanker near the straight of ohermos. They say the Royal Navy Ship did have its gones trained on theed a min spration ap a walk away that separates the persian golf and golf of iman another developing story that could Impact Oil Prices around the world a major storm is developing, prompting Oil Refineries to repair for the wursz at least. Good thursday morning to you. We have not seen our disturbance get any better we want this thing to be as quick as possible. As we move into louisiana, were going to have problems with flood, surge, and reule. Doesnt have a well dedefined century yet. Kant become a powerful storm at all. When this storm system over the next cup 068 days. And a chance to become a lowend hurricane. But with the position at land card and thats why i dont think the wind is going to be a problem mp it will and this four to six foot storm surge could be and that map could be problematic for new orleans, especially saturday thats the story saturday. Nearly 1 3 of the crude outfit as the storm thrl down it near someone a barrel we had a decline from eia data and that was surprisive of prices er when you come back, struggling in bed, bath, and beyonds latest quarter. Plus a major u. S. Defense giant eevr proposed factory close in nevada and what nen tender eos has in store. You should be mad at leaf blowers. 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Welcome back, good morning stock features are higher with gains a little bit of momentum since 15 minutes ago indicated higher by 78 points and tack on nine at this point the nasdaq adding another 30 points and bed, bath, and beyond down however, they fell 6. 4 . They had expected a decline but 5 and 1 2 longtime ceo was poshed out and this is following a group from investors. They managed to get four new directors in a constituted board. And Larry Winston says the company is reviewing the store brands as part of af a plan and cut costs and change its organizational structure shares of bed, bath, beyond are down more than 40 in the past year. Solomon is here. So quite a mix today. Helicopter, beers and video games. Saying it it will keep open its plants after President Trump pressed the company to continue operations lockede announced lans to close the raktry the president tweeting after the announcement, lank you to lock heed, martin they have pour65 workers, by the way. Reportedly guiding investors for the fraumg ethey say it is already over subjins. Shares down 1 10th of a percent. And 1. Yeah, slightly more than 4 after they said they will launch switch light popular game consul. The new device will be available for 199 verses 2 had been99 and in time for the shopping season. Im sure that was a hot item and still on, President Trump is dfrpding sillicon valley in the face off a proposed tax. Whats at stake . And later another win rkmas a milestone in the streaming wars. All the lady my mom washes the dishes. Before she puts them in the dishwasher. So what does the dishwasher do . Cascade platinum does the work for you, prewashing and removing stuckon foods, the first time. Wow, thats clean cascade platinum. Welcome back hes ordering them to attack some of the biggest tech comp ans including alphabet, apple and amazon says the tax unfairly targets u. S. Companies could result in tariffs on french cars and wine. A Ministry Official sesz its compliance with International Agreements and it was inappr inappropriate to use trade topics as retaliation. Stocks mostly flat apple up 3 10 off a percent. Stocks set to open at new highs as jay powell heads back to capitol hill. Well break down the key things you need to watch and the test flig tunate i can lean on people, and that for me is what teamwork is all about. You cant do everything yourself. You need someone to guide you and help you make those tough decisions, thats Morgan Stanley. Theyre industry leaders, but the most important thing is they want to do it the right way. Im really excited to be part of the Morgan Stanley team. Im justin rose. We are Morgan Stanley. Hey i live on my own now ive got xfinity, because i like to live life in the fast lane. Unlike my parents. You rambling about xfinity again . Youre so cute when you get excited. Anyways. Ive got their app right here, i can troubleshoot. I can schedule a time for them to call me back, its great you have our number programmed in . Ya i dont even know your phone anymore. Excuse me . what . I dont know your phone number. Aw well. He doesnt know our phone number you have our fax number, obviously. Todays xfinity service. Simple. Easy. Awesome. Ill pass. New developments this morning in the case against jeffrey epstein. Good morning, sarah. New developments not only with episfeen but u. S. Labor secretary acosta who said the plea bargain in 2008 was the only way that he could insure epstein went to jail but a former Florida State attorney is calling that totally false laborer secretary on the defense. Backs are important and theyre being over looked. Rebuffing calls to resign and the plea deal he over saw 11 years ago saying he wouldnt have served any jail time had his office not stepped in. The Palm Beach State Attorneys Office was ready to let epstein walk free. No jail time, nothing. Acosta is trying to rewrite history and a draft that could have sent him to life was abandoned. Id like to know more about that and if rults rr accurate, thats a different story he had to register as a sex offender and make restitution with victims the press conference did little to silence the chorus. You chose wealthy and well connected people over it the victims in this case but the president is standing by his embattled labor secretary. And the Vice President weighed in saying he was pleased to see acosta step forward. This story certainly will continue to have more developments lets get a check on this mornings other headline president. Grood morning, frances. We start with federal prosecutors receiving a life sentence they claim the overwhelming evidence at trial shows he was a ruthless and blood thursdayy leader 2407 car tele he also criticized the government s attempt at a 12. 6 billion restitution saying they have yet to locate kpae of his assets he with will be sentenced next week more fireworks over the fourth of july extrav gabzau. The mayor said the event bankrupted the fund and asking for 1. 7 million in reimbursement from the city. The Security Fund is designed to pay for extra security during big events like inaugurations. One shark found himself at the bottomf of the food chain. Frrg a furdf of of sharks swallowed a shark in one single bite how is that for some shark karma. That is really cool video thank you for that, frances. Haddee come back, giving the people hot they want fed chairman powell ready to do what it takes. And amazon hitdingting a major milestone. And a mixed bag from bed, bath and beyond has people scratching their heads this morning. My digestive system used to make me feel sluggish but now, i take metamucil every day. It traps and removes the waste that weighs me down, so i feel lighter. Try metamucil, and begin to feel what lighter feels like. They have businesses to grow customers to care for lives to get home to they use stamps. Com print discounted postage for any letter any package any time right from your computer all the Amazing Services of the post office only cheaper get our special tv offer a 4week trial plus postage and a digital scale go to stamps. Com tv and never go to the post office again the record rally rolls on as the fed signals a rate cut could be coming. Oil prices pushing higher as a major storm churnz in the gulf of mexico. And clean up in aisle three. Bed, bath and beyond but investors are unimpressed. Its thursday, july 11th and youre watching World Wide Exchange on cnbc. Features are indicating a higher open the Dow Jones Industrial average now indicated to open higher by about 86 points. Nasdaq higher by 84 and s p higher by 9 and a half it did cross over 3,000er infirst time yesterday but fail close there. Take a look at the treasury market lets take a look at over sees trading. You can see the japanese nikkei higher and the south korean kospi up all eyes on chairman powell. They looked what he had to say green arrows across the board and the italian Index Holding up the best but again green all around europe. Now youre looking live at new orleans are a major Tropical Storm is taking aim. Forecasters say it could make land fall as a hurricane by this weekend. Oil prices are higher today. They were higher yesterday by about 4 and a half . Near 61 a barrel. Were going to continue to monitor the storm and bring you any new developments as they come theyre already taking precautions in the gulf of mexico switching gears, jay powell is testifying before the Senate Banking committee this time. Yesterday he went before the house and signalled a rate hike could be coming at the end of the month. Lets bring in chief Market Strategist at ameritrade powell had a bit more off a dovish tone than i think some were expecting pricing in 25. And now theres 33 er chance we could go 50 basis points where are you right now . What did jay powell say that may be informing the way youre looking at this market i think given the fact the fed in general tends to be a bit more conservative. I would lean to a 25 basis as you said after his testimony i think people got a bit excited that maybe well get a 50 given the past record, i would expect them to take it slowly as they lean on every time. And almost in a little bit off a trap here in the fact that the market has prused in a 25 basis points kbrg over 70 is usually a surety its going to get done when it comes to probability its something wie dont see at all. S you see thats been the juice that had the market rallied over the last few weeks i think as soon as this is done, the market is going to say whats next . And maybe with that though we have earnings coming up so maybe that will help reinforce the market needs it. Again we have slowed doup but it seems awfully hard to believe when you have a stock market, the economy is terrible. I find it funny when the market is doing well and yet people come on and say this a terrible situation. Thats sotrue and that was the conversation i was having earlier in the hour. It feels like you could look at this Glass Half Full orrer empty, depending on what your purview is the market is record highs sure theres are weak poibts but look at the jobs report we just had. Is powell being appropriately cautious or otaking in almost too inside and the slowdown were seeing outside and thats why i lean tortsz a kpievr basis cut and lets face it we still have the major tariff story hanging over us. Its nice to have it not on the front page we get great insight on how things are going with the banks coming up with earning and its going to be very interesting because as you and i both know rates getting cut the anticipation are the worst things that can happen theyve done a good job imagining into this. Weal are see what they can do when their money and you would think that in this environment, a bank like wells fargo omight benefit because the average 30year loan in a year has gone from 5 foit 52 to 3. 7 so i dont know that you would see that kind of demand in a 30 hch year mortgage. Wie needs to look at when they can come out with rate cuts, they seem to demand our servess and i dent see that professionally or internationally. And it made me reinforce what chairman powell said we are slowing down maybe more than people think. You make good point there, j. J. Now that weve heard from powell at least one day how are you putting this all the 92 play when youre utilizing a strategy infor the market . We see what our clienlts and release what they actually did Interesting Data was for had first siej since 2016, they are sellersff assed pup. Thats very unique it could be because we had such an amazing first half, no matteder how much people worry, our clients were taking profits and one of the ones they sold were ams its the number one sold stock on the month of june so the investor, how theyre looking at the market, maybe ea this wall of worry is coming and with that they want to take profits ahead off the slowering of summer or all the otherer news thats kinds ofute there i think we forget theres brexit on the horizon because we forget hes going to be in the it day makes sense were going to put it all together thank you, j. J. Crossing now goldwin putting holds on costco, target and bed, bath, and beyond shares moving lower this morning. The cops well more than 6 last quarter. And recognizes the team for fund smtal points joining me is alex. I thik we need a minute if we can. What is going on betted, bralgt, and paurn if we can be fair about that i dont know if we want to say its falling aparted yet but 7 billion in sales plus or minus in a thousand stores. Its a having a difficult time. Ilities are reflective off a retailer that stood still while the industry was changing round them and recently they had some outside investors come in, create an activist campaign and you have to give them credit for curening wut they rick nugged a few of the it signals, which is a reluctance to think about somebody may attract a new consurer thats really the key number you want to look for with Retail Businesses this is a business that conti e continued to hemorrhage sales. In a category thatute to be cell pvly sable. And you look at all the outside influences and you say in this particular case unexpected and they were reluctant to change the Business Model that had been working for them for 20 plus years. Dwlb kboent go if everyone knows but they 1 buy bye baby, world market, cost plus and others. Wlauts do you think . Your turn around artist. You help them fix and change things what do you suggest sest they do first on the deck snp so two things need to happen simultaneously the it first is really to get your hansds around the operation and one, two, three at most. Operational priorities and going back to the nex off a business and think about how you can leverage those noncore assets to improve the Balance Sheet or generate a little flexibility to invest back on the operate side. Interesting thing also you hear about the struggling retailers. Theyve taken on a lot of can debt, many through private equity transactions. So for them its improving their Financial Leverage and focus theres an advantage and disadvantage to being a full on brick and mortar like bed and bath is. They with create an environment where the can customer is at the center of the universe and this motion of customer sen tristy and the ways the customer may want to interact with your business is critical in retail today. If they create flexibility to invest by improving their Balance Sheet and c balance reducing the number of things youre working on could be a win for the vestors from an outside in, really ratchet down the number of things theyre working on. And not to forgo the fact that their can competitive advantages, their thousand brick and Mortar Stores around the country. Theres still plus or minus 3 trillion of retail sales inside of brick and Mortar Stores its not as if the store is going way. But the new thinking is how the retailer puts the customer that incenter of the universe and then levage the ats that they have and try to copy amazon or somebody else. I hope theyre listening to your prescription. Well see if they can make improvement and turn this thing around my pleasure can coming up . Big battle brewing with france well take you live with the latest and now bad blood here 185 reason why she celebrated today. You should be mad they gave this guy a promotion. You should be mad at forced camaraderie. And you should be mad at tech that makes things worse. But youre not mad, because you have e trade, whos tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. Dont get mad. Get e trades simplified technical analysis. danny s voice of course you donte because you didnt . Your job isnt doing hard work. Its making them do hard work. And getting paid for it. vo snap and sort your expenses to save over 4,600 at tax time. Quickbooks. Backing you. 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. Tech is in the middle off a trade fight again. This time over trade compen as in france. Rob r Robert Lighthizer sayinging it it unfairly targets American Companies. This is a proposed 3 tax on American Companies and says about 25 million come from france. France has specified they specifically refer to platforms that connect people and businesses think facebook and online advertising. This is not an online sales tax. Ultimately its so high its a very targeted effort and many in the u. S. Now france says it would raise 500 million a year from the measure. I would imagine tech comp ans are not too thrilled amazon says it aplauplauds the Trump Administration for taking decisi decisive action. So far france is standing its ground and Bruno Le Maire added he hopes the u. S. Can find agreements rather than threats on trade this has been a big effort in france and doesnt look like they are backing down quite yet. Es for he says look, france does what it wants to do on its own but why do that . Its part of the eu. Why go at this alone we saw a big push to make a concentrated effort and a tense moment at the end off last year. Specifically ireland and germany saying they wurnerent ready for this yet this isnt the first time. This is an important issue and were going to continue to move forward with on our own until that happens thank you very much well continue to follow this. Its time for the top trending stories we get to start my girl, taylor swift. Oh, youre a taylor swift fan . Through and through a lot of people are theres nosign hes ready to calm down. Bringing in a pretax income of 185 million in the past year that is her most successful year yet. Kylie jenner, lionel mess and the kardashian clan. Wow, its amazing Kylie Jenners makeup line is gangbusters and theres so much interest taylor swift did 185 million. Its a huge jump from last year. So apparently her 2018 reputation tour was the highest grossing u. S. Tour ever. So im sure that helped. It was worth the price off admission. Ill admit it. It was good. A good one for amazon. Finds theyre the Fastest Growing music streaming service. Theyre adding them fast than rivals like spotify and google thats interesting. I mean i know amazon has a Music Services i dont think ive ever used it. M kr rr more off a spotify person i started with pandora and moved to amazon. Maybe i should check it out. Lets take a look up to the sky. So this is Virgin Galactic test launching the rocket theyre dropped from a planefore their boosters switch on paved its way for the first launch to space. Apparently it happened exactly as they planned it i feel like all the billionaires are going up to space or down to the sea. It use ood be sports teams and now its spaces. Year just chilling out on the the ground were so claim. We hangout on earth all day. More on that developing story in the it gulf a major story is gaining strength were going to break down the impact on oil prices and stocks could open at new illtime highs where you can stl find opportunity in this rally when World Wide Exchange take prilosec otc and take control of heartburn. So you dont have to stash antacids here. Here. Or, here. Kick your antacid habit with prilosec otc. One pill a day, 24 hours, zero heartburn. Looking at a live shot of new orleans right now. The headlines you need in 60 seconds. Were following a story out of the gulf of mexico its gaining strength and could make land fall as a hurricane by this weekend so right now oil prices are higher around 61 a barrel here up about 6 10 it off a percent as the storm closes in well, bad, bath and beyond reporting mixed results. Shas of bed, bath and beyond are lower in free market trading by about 5 and a new report shos retailers are still stocking up on inventory as the trade war continues. But pace has slowed. The National Retail federation says ports will remain at record highs this summer. Earn itting back to the markets, futures are indicating a higher open when the bell sounds at 9 30 on the east coast Dow Jones Industrial average by about 87 points right now. Global Market Strategist so we had day one on capital rrb hill surprisingly dovish. We had been pricing at almost 100 and now the door looks to be i open to 50 should we be cutting rates by that much . I neal economy is strong, no the economy is strong put the Second Derivative is starting to turn it. Im looking at things like manufacturering and of course chairman powell did point to the global mulaces that is everywhere this is a theme weve been looking at for many haengss. And you can see the deal starting to roll over. I think door is open to 50 but hats rr a very unlikely saur i think the bigger worry is it the benefits from tax cuts are wearing off. And the trade war is likely to be somewhat prolonged because those issues are so complex. If i may just on markets for a moment we were over sold in december. So weve been standing by the tale off two halves narrative which is markets were over sold and we felt they would rally were obviously north off there, making new highs the situation this late cycle is a bit precarious a when the fed is forced to cut after hiking nine times, it means that a recession is not far behind and its been a very long time since weve had a recession but that doesnt mean it has to be coming. That sort of changed the game on Monetary Policy and you think quantitative easing is not out of the realm of possibility to happen again number un the Business Cycle cant be defeated. Right now we have this classic push and pull between the cost off capitol and growth people arent assessing, in my view, the downturn in growth that will likely come being born overseas and that is typical if the fed cant kill the Business Cycle, it shouldnt try to boss thats a natural part of capitol markets and free markets. Then we should expect a slow down to come and this idea that the feds job is to sustain a recovey forever doesnt seem to square with history or really what the feds mandate is longer term Business Cycles in my view are necessary and should be embraced as what mocks markets work well. Tl theres a lot to digest futures are higher at this moment but who knows. Weve got a big day ahead. Year also going to watch oil prices as it gains strength in the gulf of mexico squawk box begins right now. The rally goes op. Well have a full run down todays big Market Drivers plus well show you what the fed chair said yesterday and a big battle betwine the u. S. And france under taxing Companies Like facebook and google now considering retaliatory measures on french cars or wine. Who would notice its thursday, july 11th, 2019 and squawk box begins right now. Live from new york where business never sleeps, this is squawk box. Good morning. Were live at the u. S. Markets and lets take a check on u. S. Equity futures at this hour after a record setting day, the s p looking to gain on yesterdaysed a vansz. Dow jones looking to add 84 85 points the nose dak had a closing high. Hitting 3,000er for the tooirs time see what the axz action is look. And his testimony in fronted of congress yesterday