Im wilfred frost along with seema mody. Good morning. Happy valentines day. I wore a red tie. What is this . My personality will shine today, how about that . Always does. But still, you could have given me a little bit of valentines day love. Great to have you with us. Lets check in on the Global Market action. Futures at this hour following another record breaking day for all of the manger indices yesterday not just hitting record highs, some momentum building, five positive sessions in a row for the dow and the nasdaq. Three in a row for the s p and the nasdaq, three in a row for the dow. It is broad as well. Yesterday 10 out of 11 sectors were positive, led higher by financials, telcos was the only sector in the red. The kb bank sector has had three Straight Days of gains. At its highest point since september of 2008, which is impressive on one side and astonishing on the other to remind us how much banks had underperformed until fairly recently on a longterm time frame like that. Futures this morning, as you can see, a little bit soft. Basically flat. The dow in positive territory. The nasdaq and s p in negative territory. Yields, important to note, those have moved up since the middle of last week, 2. 34 is the low. Were now at 2. 44. Yields continuing to tick up over the last couple of days. Before we look at market picture overseas, a developing story overnight. President Trumps National security adviser Michael Flynn has resigned. The departure came hours after the Justice Department told the white house that flynn was subject to blackmail because he misled Vice President pence and other individuals about the nature of his communications with the Russian Ambassador to the united states. Retired army general Keith Kellogg has been appointed acting National Security adviser. There was some Economic Data out of china overnight, consumer inflation rate quickened to 2. 5 in january from a year earlier. That is the highest since may of 2014. Better than expectations. The Producer Price index rising 6. 9 . The fastest since august of 2011. A mixed day of trade in asia overall. The Chinese Market showing a bit of green, hang seng slightly lower. The nikkei closing down by 1 . Some traders pegging it to toshiba which delayed Earnings Release including details of a multibillion dollar charge related to cost overruns at its u. S. Nuclear arm nissan. Another stock that was down, therefore led the nikkei lower. That toshiba thing weighing all over the indexes. Its been weighted following this review following the troubles they had the last six months. More on that in a moment. The picture in europe, quite a lot of data coming out. First to germany, the economy there grew by 0. 4 in the final quarter of 2016. A he are bound compared to the summer, but that growth was disappointing compared to expectations. In the uk, the Consumer Price index rose to 1. 8 last month. And Producer Prices rising 0. 6 . The effect of the softer pound is creating higher inflation in the uk than the rest of europe. We also had second estimates for Fourth Quarter gdp from the eu. The figure at 0. 4 quarter over quarter, down from the prior reading of 0. 5 . Lets look at the market trade in european markets. Just down for germany, higher for the likes of france and the uk. And this comes of course off a decent rally in europe. We said five straight gains for the s p, we had five straight gains for the stocks index. This is not just a trump rally, this is being lifted by Global Sentiment as well. If we look at commodity markets, thats been playing a role in driving stocks, specifically from latin american countries, those that are reliant on this resurgence on commodities. Wti crude slightly higher today. I should say yesterday it did break a threeday winning streak. Right now at 53. 34. Ice brent the international gauge at 56. 08. The dollar very much in focus today with the fed meeting kicking off. Looking for statements from janet yellen, of course the prospect of further rate hikes in 2017. The impact that will have. A lot of people say the stronger dollar, since trumps election has, in a way, been a way to tighten monetary conditions. So well see how that factor will play in. The prior four weeks we got the dollar decline. Last week it broke its fourweek losing streak and stronger yesterday, by 0. 2 . As asian trade opened overnight, the dollar was stronger again. The resignation of Michael Flynn did soften the dollar around the edges, in particular the ruble moved higher 0. 5 . That change at National Security adviser is having a bit of an effected on the dollar. It is softer now, not by too much. The dollar move against the yen higher was also influenced by toshiba, when the nikkei declined overnight, that saw the yen move in the opposite direction higher. We have a bit of dollar weakness, partly affected by that resignation of flynn. Are we finding safety in gold . A quick look at the shiny yellow metal. It has seen three negative sessions, today slightly higher by 4, 1,230. Today fed chair janet yellen is on capitol hill for day one of her semiannual testimony on Monetary Policy. She goes before the Senate Banking committee at 10 00 a. M. Eastern. Also speaking today, richard lacker, ron kaplan. Lk for results from dr. Pepper, molson coors, and after the bell, from aig. All the focus on janet yellen today. I feel like theres a potential room for her to surprise a little bit. Everyone is really expecting now the market is content on two hikes, not three, not one in march. Perhaps she could surprise a bit by hinting vaguely towards that. You know how they like to keep options open. At the moment, the markets are not expecting march. Theres only four meetings throughout the rest of the year with press conferences. If they did want to hike three times as opposed to two, march needs to be an option. Clearly the consensus is well get twhree, not two, and march s the first one. As you say, the fed will be front and center. Dallas fed president , Robert Kaplan says the fed should raise rates shoon soon. Kaplan says leaving rates low for too long can create distortions in hiring and penalize savers. Well see if that commentary has an effect on janet yellen. Shinzo abe making comments about his visit with President Trump. He told parliament that when he was alone with trump, he told the president it would be inappropriate for them to debate exchange issues, and that those issues should be left for finance ministers to discuss. He said President Trump agreed. On the topic of currencies, the white house is reportedly considering a new tactic to discourage china from manipulating currency. The wall street journal says the plan would involve the commerce secretary designating the practice of currency manipulation as an unfair subsidy when employed by any country. This would be a change from singling out china. U. S. Companies could bring an antisubsidy actions against countries. We know President Trump gets it wrong by saying china is manipulating its currency down. Yes, it is manipulating its currency, but propping it up. And the wall street journal starts the article by saying that premise is the right view. Even if this is a new approach the white house is taking one can question whether it is justified and makes sense to do so. I think everyones argument on this is misguided. The premise that they used to manipulate currency down is wrong. They still manipulate the currency, but they manipulate it higher. I feel theres a reset needed on everyones thinking on this topic. Everyone is taking the premise that donald trump shouts about is correct. But they dont do that. You know, i think its those oneoff devaluations that we saw in august of 2015 and once again in january of 2016, that really created some sense of anxiety among global investors. Perhaps hes referring those versus the krongoing appreciati in surcurrencies. I think investors got spooked by those devaluations, but trump frames is that theyre doing it to boost exports. Which is quite the opposite. Moving on, political news, the Senate ConfirmedSteven Mnuchin to head the Treasury Department in a vote mostly along party lines. Mike pence swore in mnuchin, the president spoke about mnuchins experience. Our nations Financial System is truly in great hands. With him, well have no problem, believe me. Once again, with this appointment im following through on my promise to appoint only the very best and the very brightest. Steven is a financial legend with an incredible track record of success. Ive watched this over the years. Hes been my friend for many, many years. Everything he touched has turned to gold. So he gained a treasury secretary, losing a National Security adviser. On the agenda Linda Mcmahon is expected to be confirmed as head of the Small Business administration. In other washington news, chief executives of some of americas largest retailers, including target, gap and best buy are headed to the Nations Capital in an attempt to kill a propose the u. S. Border tax. The meeting is reportedly taking place tomorrow with kevin brady, the chairman of the tax writing house weighs and means committee. The executives will argue the controversial tax on imports would raise Consumer Prices and hurt their businesses. Trump, you have to say whether you agree with him or not, the president has been very busy. Every day, a new meeting, new agenda. Hes certainly getting on with it across all fronts. Interesting assessment in terms of confirmations. During the transition people were saying he was taking his time to announce them. But the speed of the confirmations has been pretty fast compared to the last three presidencies. I saw a comparison of that this morning in one of the newspapers, that Means Congress will have time to get on with actual policy and reacting to executive orders. Which is what wall street wants. That is when we will see whether things are delivered or not. And could confirm the market rally. Intels ceo says it is important to have an open dialogue with government in every country where the company operates. He met with President Trump last week and said intel would create up to 3,000 jobs after completing plans for a factory in arizona. In an interview last night on mad money, he said he issued a letter to employees and shareholders explaining why it was important to meet with the president. We not only wrote that letter, then the next day i flew back that night, then sat in front of my entire organization in a webcast and talked to them about why we did it. We took a poll afterwards to see how the employees perceived us as a leadership team, our position. Over 80 positive response that we were being transparent, doing the right thing by being at the table and they understood we have to be there talking to people. Great stuff from jim last night. He loved being in san francisco. I loved all of his tweets of him in san francisco. Another big show tonight. Dont miss his interview with visa ceo al kelly on mad money. His first interview since taking the job in december. To some corporate news, Credit Suisse posting a wider than expected Fourth Quarter loss on costs related to the banks 5. 3 billion mortgage settlement with the u. S. Justice department in december. Revenues fell 7 in the quarter. Credit suisse expects to cut 5,500 jobs this year as it reduces costs. Still the companys ceo told cnbc earlier today hes upbeat about the year ahead. My inclination will be to be prudent, which i would like to remain. We had a good january. Thats all i could say. We had a good january. Good january. We had a good january. I hope that the rest will be similar. We dont see any indication to the contrary. But, you know, one has to be humble with markets. A lot of geopolitical uncertainty. A lot of things on the horizon that could turn negative. Cautiously optimistic. Investors appeared to be shrugging off the q4 loss focusing on Strong Capital ratios which were down from the third quarter. I think that was pretty similar to Deutsche Bank. Both of them focused on making sure the Capital Position was strong. Where theyre better than Deutsche Bank and why shares may be rallying significantly is that they did take part in that q4 bounce in Investment Banking that the u. S. Banks had done, which Deutsche Bank missed out on. Which was worrying for market share. Despite that headline miss, q4 is strong. And we heard from tidjane, outlook for q1 continuing strongly. Thats good. Do you think it shows people are bullish on these european banks that are dealing with issues as we just saw with this Earnings Report from Credit Suisse, we saw a similar story out of commerzbank. Commerzbank turned around and was negative by the end of the trade. Overall Credit Suisse is performing well. Deutsche bank didnt, commerzbank didnt, i did not dive into the numbers in detail, but this is off the q4 Investment Banking interests. Tidjane thiam, the first interview he did as head of Credit Suisse was with us on Worldwide Exchange. Toshiba will take a 6 billion writedown on its Nuclear Business which will wipe out shareholder value and drag the company to a fullyear loss. Toshiba will postpone its Quarterly Earnings filing by up to a month and announcing the chairman will step down. Shares down 8 . Still to come on Worldwide Exchange, the top corporate headlines from around the world. First, as we head to break, a look back at this day in history in 2005. Three former paypal employees launch youtube. A year later they sold it to goggle for 1. 5 billion. Today nearly 5 billion viewers are viewed every day. I cant belive that was founded in 2005. Were back on Worldwide Exchange in a couple minutes. Always obvious. A sometimes they just drop in. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Were drowning in information. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your future. How do you solve this . You dont. You partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. Welcome back to Worldwide Exchange. We have tech news. Apple closing at an alltime high yesterday. The record coming after Goldman Sachs raised the price target on the stock citing apples 3d sensing technology. We heard from the senior Vice President of internet and software services, who spoke in california. He pointed to an area where apple could improve. If you look, the world today has less than 100 Million People subscribing to music. And theres billions of people listening to music. We still think the potential for growth is exponential. No, were not satisfied. We want a lot more. Apple, again, closing at a record high. It is really the outperformance of the nasdaq that is quite noticeable or significant. The nasdaq 100, seven positive sessions in a row. The longest seven day winning streak since january of 2017. Not that recent. I was getting so excited. But the nasdaq picked up the slack in terms of back end of last year, tech was the underperformer, the dow was the leader this side of new year. Heres a good one. The nasdaq 100 up about 10 since the election. So its outpacing the gains of the dow and the s p. We go. Marathon pharmaceuticals is pausing t pausing the launch of its drug to treat muscular dystrophy. It has already been on the market for decades as an antiinflammatory pill. The ranking democrat on the House Oversight committee announced an investigation yesterday into marathons price hike. Coming up, we will take you live to washington for the latest on the abrupt resignation of the president s National Security adviser. Stay tuned. Youre watching cnbcs first in business. Okay, so whats our latest data say . Our customer is a 21yearold female. Heavily into basketball. Wait. Data just changed. Now shes into disc sports. Ah, no shes not. Since when . Since now. Shes into tai chi. She found disc sports too stressful. Hold on. Let me ask you this. Whats she gonna like six months from now . Who do we have on aerial karate . Steve. Steve. Steve. And alexis. Uh, no. Just steve. Just steve. Just steve. Live business, powered by sap. When you run live, you run simple. Incr. Think it wouldotection in a pwork, but it does. Dnt. Its called always discreet for bladder leaks, the super. Absorbent core turns liquid to gel. I know im wearing it but no one else will. Always discreet for bladder leaks. Heigh ho heigh ho heigh ho heigh ho its off to work we go heres to all of you early risers, whats up man . Gogetters, and shouldbe sleepers. From all of us at delta, because the ones who truly change the world, are the ones who cant wait to get out in it. Because the ones who truly change the world, im vern, the orange money retirement rabbit, from voya. Im the money you save for retirement. Whos he . Hes green money, for spending today. Makes it easy to tell you apart. That, and i am better looking. I heard that. When its time to get organized for retirement, its time to get voya. Breaking overnight, Michael Flynn has resigned as donald Trumps National security adviser. Edward lawrence joins us from washington with the latest. Good morning. Reporter nbc news learned that the president has several names hes considering to replace Michael Flynn. The message moved quickly from support for him to resignation. Embattled National Security adviser Michael Flynn resigned. In his letter to the president he says he briefed the Vice President and others with incomplete information regarding his phone calls with the Russian Ambassador. Democrats jumped on the information that flynn may have discussed sank shctions against russians before President Trump was sworn into office. What concerns me is that if the allegations are true, he has misled the country about secret communications with the russianrussian russians. Reporter flynn said he is not 100 sure what he discussed in the calls with the Russian Ambassador. Retired army general Keith Kellogg takes over as acting National Security adviser, this as north korea continues to test the trump administration, not backing down following a missile test over the weekend. North korea is a big, big problem. And we will deal with that very strongly. Reporter the president taking time out of his meeting with the canadian Prime Minister to address that issue. Back to Michael Flynn. The white house wants to move quickly to replace him. Several people who have risen as names are meeting with the president this morning. Who are some of those names that yeah, three names have risen to the top. General petraeus, robert harward, former u. S. Forces commander, and the current now acting National Security adviser, Keith Kellogg. All right. Thank you very much for that. Well look in interest at those meetings. Want to bring up the ruble trade today. We did see the dollar soften a bit in asian trade when this news came out. The dollar broadly down against most currencies. One of the biggest gainers in the trade is the ruble. We can extrapolate and suggest its just based on this development, either way, the ruble one of the biggest gainers against the dollar. All things considered, it was the fact that he appeared to have lied and mislead to the Vice President , the administration itself, that caused overall his resignation as opposed to the initial wrongdoing of the meeting with the Russian Ambassador. The russian ruble at a 19month high against the dollar. More from washington coming up. But this mornings top stories and a round of Global Markets, and todays top trending stories including why youtubes highest paid star got dropped by disney. Details coming up. Youre watching Worldwide Exchange. Their leadership is instinctive. Theyre experts in things you havent heard of researchers of technologies that one day, you will. Some call them the best of the best. Some call them veterans. We call them our team. Bp gives its offshore teams 24 7 support from onshore experts, so we have extra sets of eyes on our wells every day. Because safety is never being satisfied. And always working to be better. Good morning. Michael flynn resigns as National Security adviser. Todays market agenda, fed chair janet yellen heads to capitol hill. Expectations coming up. And you cant buy me love, but plenty will try. Well add up the big business of valentines day for you. Its tuesday, february 14, youre watching Worldwide Exchange. Good morning. Very warm welcome to Worldwide Exchange on cnbc. Im wilfred frost along with seema mody in for sara today. Good morning. Good morning. Yesterday record highs, once again all of the manger u. S. Indices, five Straight Days of gains for the s p and nasdaq. 10 out of 11 s p sectors were l higher, led by financials. The s p is just below fair value in the futures. Expected to open down by a half point. Similar picture in europe. We had five Straight Days of gains for the stoxx 600, the broad market index across europe. Yet today were seeing that run out of steam a bit. Germany just in the red with france, the uk and italy just in the green. Asian trade for you was for the most part negative. The only meaningful negative was japan, which is weighed down heavily by toshiba shares by 8 . The nikkei down 1. 1 . As you can see, hong kong and shanghai flat. As we look at broader markets, its interesting to watch the price action in oil. The resilience in oil and the impact that has had on Investor Sentiment and stocks as well. Today, slightly higher at 53. 37. Reversing a downward loss. We were looking at the first loss in four sessions for the price of oil. But holding on to gains. Ice brent crude higher by 1 . Nat gas lower by 0. 8 . What is more in focus, the tenyear treasury note as the fed kicks off its focus, the impact of trumps fiscal growth and Monetary Policy. Tenyear treasury just below 2. 5 . That slip in yields that did hurt the dollar and with it partly some equities last week was temporary. We have rebounded pretty quickly. We are now back towards the 2. 4, 2. 5 range. Either way, as Rick Santelli points out, the important range is 2. 3 to 2. 6. Even with yesterdays loss, we were within that range. Until we break one of those two levels, he feels were rangebound. Perhaps janet yellen can move it i doubt that much over the course of today. Rising yields from the lows that we saw last year, a big factor that has helped the financials outperform, a big part of the rally weve seen on wall street. Look at the dollar. That, of course, could be in focus today for janet yellen, the fed as well. The impact that could have on earnings and growth. That has been a concern for a lot of these multinationals that do business overseas. The euro trading at 1. 06 against the dollar. So its stronger. The dollar lower against the yen. The nikkei closing down by 1 . Gold, lastly, under a bit of pressure over the past couple of days. Today showing resilience. Up by 5. Sterling has fallen on that surprise inflation miss. We did get that data. Inflation came in at 1. 8 year on year versus 1. 9 . Broadly speaking, that number is still showing that inflation is higher than the rest of europe because of the weaker pound but slightly less high than people expected. So the pound is what is weakening today. More broadly the dollar is soft. That was influenced by that resignation of Michael Flynn. In asian trade last night, the dollar was higher. When the resignation was confirmed, we saw a slight pull back in the dollar, particularly against the ruble. The ruble higher by 0. 7 . Fed chair janet yellen is on capitol hill for day one of her semiannual testimony on Monetary Policy. Several other fed officials are also speaking. Jeffrey lacker, rob kaplan and dennis lockhart. We also get december ppi data this morning. Look for results from dr. Pepper, snapple, molson coors and after the bell, we hear from insurance giant aig. Front and center is president Trumps National security adviser Michael Flynn resigning. The departure came hours after the Justice Department learned that flynn was subject to blackmail because he misled mike pence and other senior officials about his communications with the Russian Ambassador to the yig united states. Keith kellogg, a top policy adviser for the President Trump campaign is now acting National Security adviser. This may have come as a surprise, but it did seem like some traders are pegging the weakness in the dollar to this abrupt resignation of Michael Flynn. I think it came as a surprise relative to the last week or so. During the course of yesterday it was starting to point that way. All eyes, as Edward Lawrence was telling us, on the various names heading to the white house today, including david petraeus. Credit suisse reporting a wider than expected loss. Revenue fell 7 in the quarter. Credit suisse expects to cut 5,500 jobs a year. Investors appeared to shrug off the q4 loss focusing on Strong Capital ratios which were down only slightly from the third quarter. You can see shares up about 3. 3 overall. Included in the reason why shares are rallying is a stronger than expected performance in the Investment Banking q4 which tallies more of the u. S. Investment banks as opposed to Deutsche Bank. A big stock on the move in japan is toshiba. It says it will take a 6. 3 billion writedown on its u. S. Nuclear business, which will wipe out shareholder value and drag the company to a fullyear loss. The results are only being released as guidance as they have not been approved yet by the companys auditor, toshiba will postpone its Quarterly Earnings filing by up to a month and announcing its chairman will step down. The stock down about 8 . If you need a reminder, it is valentines day today. The holiday of love is also a big day for spending. Landon douwdy has all the details. I hope you already ordered your flowers and did not procrastina procrastinate, but after years of spending americans are getting frugal when it comes to love. Total valentines day spending is expected to reach 18. 2 billion this year, down from 19. 7 billion spent last year according to the National Retail federati federation. U. S. Consumers will spend an average amount of 136. 57. No surprise a bulk of that is spent on flowers, candy and jewelry. 1. 7 billion will be spent on candy. 2 billion on flowers. 20 of annual flower sales happen around valentines day. 4. 3 billion will be spent on celebrators who plan to buy jewelry. Romance is it not just in the air on the holiday, its also on the web. Match. Com will likely see a 20 increase in new profiles the week after valentines day. Looking at the stock, in the week after valentines day, last year shares of match group, the Parent Company of match. Com and tinder were up nearly 7 what do you think is the best city for valentines day . Define the best. Where the most money is spent . Or the best place to celebrate . We can do both. But what do you think as far as costs, buying chocolates or restaurants. Definitely not london or new york or paris. Seattle . Close, san francisco. Im surprised by that. Where would you most like to be taken on valentines day . Ill take notes. No answers, fine. I cannot believe that almost the same amount is spent on candy as flowers. Flowers are so expensive. You should take a jewelry hint, wilf. Its the thought that counts. All about the thought that counts. All i need do is send a little card, thats it. Landon, thank you very much. Time for our top trending stories today. Abc making history by naming its first black bachelorette. Rachel lindsay, a texas lawyer and popular bachelor contestant was named the next bachelorette on jimmy kimmel live. The season debuts on abc on may 22nd. Our usual coanchor on the show will be very excited. Her favorite show. This specific individual being named the next bachelorette as well. Im sure she will be. Amazing how long the show has gone on for. I remember watching it in high school. And still going on. Despite being in our 30s, some people still watch it. Disney cutting ties with what is this . Pewdiepie. Pewdiepie, after he posted several anti semitic videos. Pewdiepie, the worlds highest paid youtube star posted nine videos with antisemitic comments or nazi imagery. His channel has over 53 million subscribers, and he has received more than 14 billion views. Apple launching a new tv show called planet of the apps. The show centering around one of the developers and entrepreneurs pitching their app ideas to a panel. Apple naming jessica alba, will i am and Gwenyth Paltrow as some of the judges. The things that were trying to do are not being done by anybody else. So, thats the thats what were bringing to the table. Thats what wed like to do. Yes, to the extent if we wanted to do what everybody else is doing, youre right. You might be better off buying somebody or doing that. Thats not what were trying to do. I like the idea of this, this is where entrepreneurs in rescet years have been able to make money, bringing it to a tv format is a new idea. Im not sure how well it will work as a tv show, if youre not making a tangible product. Will it work as an attractive tv show . Its a bit geeky to say ive written this code, but it makes sense given how much money people havesector. They have lined up some good judges, thats for sure. Playboy is bringing nude photographs back into its magazine. Cooper hefner saying ill be the first to admitted the way nudity was portrayed was dated but moving it entirely was a mistake. The latest issue hitting newsstands february 28th will bring the nudity back. Quick turnaround in the decision. I guess they saw sales fall quickly to turn around a historic decision a year ago. Still to come, todays must reads, first a look at european equities at this hour which are broadly flat after five Straight Days of gains for the broader stoxx 600 index mirroring a similar performance as the u. S. Markets and futures are also basically flat this morning like those european equities. Back in a couple of minutes. Good morning. Welcome back to Worldwide Exchange. Now to our must read stories. My pick is from the Financial Times entitled clues to look for from janet yellen. Its the pregame prep for what to look out for as she starts to be grilled. Goes through various points in terms of jobs, wages, productivity, Monetary Policy, some headlines, the quote i picked out is this. Operating in highly unusual economic and financial conditions coming out of the 2008 Global Financial crisis, the fed understandably opted for a data dependent policy approach. This has trended to favor market shorttermism, but there is a useby date for how long markets should lead the fed, my sense is that has come closer. It is an interesting point he makes in terms of very sort of led by what the fed has done for the last decade in terms of expecting. Thats what i was saying earlier today. Perhaps a risk that we are being too slow to expect them to hike. The data starting to pick up. Theyre less reliant now moving forward on that kind of thing. Maybe march is possible, which is not expected in the market. Will be so key to see how the de fed decides to manage inflation, with Infrastructure Spending and the tax potentially on imports, how that could change the inflation picture in the u. S. , and more so of a role for janet yellen to use Monetary Policy to counter that. We have janet yellen speaking for the next two days. My pick is also in the Financial Times, greece is as sick as ever and its agony goes on and on. Medical metaphors are all too appropriate for the fundamental question is whether in their hearts either eurozone governments or the imf or greeces political leaders and citizens believe that seven years of expensive treatment have brought a cure, even remotely within sight. As you know, greece is back in the headlines, theres an upcoming payment of around 7 billion euros due in july of 2017. We still have some time. The negotiations, the conversations are bringing back the memories of the greece debt crisis in the summer of 2015. We talk about the political risks out there for europe. These elections. We need to keep a closer eye on greece. Absolutely. I think greece, again, just the similar issues its had for many years. Some people are more hopeful a deal is reached because the likes of france and germany dont want this to rare up as an issue. So they are more likely to find a compromise. Approaching the top of the hour. The team is getting ready for squawk box. Becky quick has a look at whats coming up. This is one of those days when some papers are outdated. The wall street journal talking about how trump is evaluating flynns future. Well react to the news that general flynn, National Security adviser has stepped down. We have senator bob corker joining us later to talk about what this means. Who some of the potential replacements could be. We also have seen overnight Steve Mnuchin be accepted as the treasury secretary. That was a vote that went through the senate and approved. We have a former deputy treasury secretary joining us to talk about those things. When it comes to the markets, wall street has been looking for tax reforms. Wonder where that stands on the president s agenda. To discuss that, we have representative david schweikert, whether you should be looking at a border adjustment tax or not. Folks, we also have joe sullivan, the guest host today, i dont know if you saw, but overnight the s p up once again. For the first time the s p mark market capitalization topping 20 trillion. Great stuff. Looking forward to it. Squawk box in 11 minutes time. Coming up on Worldwide Exchange, yellens testimony, Economic Data and Earnings Reports. Oppenheimer Funds Investment strategist joins us with his take on the day. The future of business in new york state is already in motion. Companies across the state are growing the economy, with the help of the lowest taxes in decades, a talented workforce, and worldclass innovations. Like in plattsburgh, where the most advanced transportation is already en route. And in corning, where the future is materializing. Let us help grow your companys tomorrow today at esd. Ny. Gov whats Critical Thinking like . A basketball costs 14. Whats team spirit worth . cheers whats it worth to talk to your mom . Whats the value of a walk in the woods . The value of capital is to create, not just wealth, but things that matter. Morgan stanley. Futures at this hour are mixed following record highs for all the major indices yesterday. The dow higher by two points. S p and nasdaq fractionally lower. Joining us now is talley leger from oppenheimer funds. Yesterday a nice snap chart of what has been driving markets more broadly since the election. Telecoms the worst sector, banks the best sector. Do you think weve seen a re reignition of that trade and you need to expose yourself to froth rather than value . I think we have ignited ourselves in terms of the trump rally. But in terms of style investing, its the exact opposite. Insofar as trumps prospective policies to reignite Economic Growth, when growth is more abundant i think you have cover to pursue more value oriented strategies. You dont need to pay the price that usually comes with growth oriented strategies. So high beater sectors like materials, industrials, those are things you would stand back away from . No, industrials is trading on a price to sales basis at a discount relative to the market and its own history. And so that would be a great candidate for value opportunities. But it also has a great political angle. It is the poster child for any potential fiscal stimulus that we see from trump in the form of target Infrastructure Spending. There is some concern about this size and the speed of this rally that weve seen. Do you think its justified . Is there more room to run here . I do. Look, i would admit that some of the rally was helped or fueled by animal spirits and sentiment. But thats not the only thing that was driving the rally. I think weve seen some pretty positive fundamental developments in the form of a pick up in real gdp growth in the u. S. , as well as a rise in inflation. Lets not forget earnings. Were over three quarters of the way through the reporting season. Weve seen surprise rate of 8 . Thats pretty good. In terms of other sectors you like at the moment, the financials fit the undervalued expose to growth type sector that you like . Absolutely. I get that question a lot. Financials have enjoyed a tremendous rally recently. But i would be more concerned about the run up in those stocks if the valuations still were not trading at a discount relative to the market and their own history once again. I think theres value there, much liken industrials, but also another political angle in the form of reducing regulation, just make it easier for the banks to transact and operate in an improving operating environment. Speaking of financials, the fed kicking off that twoday meeting what are you expecting from janet yellen and how that could impact this rally weve seen in the banks . Im not personally expecting too much of a change in recent rhetoric from janet yellen. At least in her semiannual testimony to lawmakers. If anything, you know, i think that we can at least expect one rate hike this year, thats been the recent trend. I know markets are fading the three rate hike path. Maybe something in the middle is more reasonable to expect. We talked a bit about the fed. What about bond yields . I know youre focused on equities, do you look at the bond yield . Does that influence what you think the market and equities can do . We did slip last week on the tenyear. Without a doubt. Its been a defensive fixed income environment. But again, inso far as the backup in rates is predicated on real Economic Growth and a rise in inflation, thats also a very Good Environment for equities. You cant have a complete view on stocks without looking at other Asset Classes like fixed income. Apple now at a record high. That was one stock that didnt participate in the initial rally that we saw after the election. What do you make of apple shares here . I dont have a view on individual companies, i guess i tend to be a contrarian when it comes to technology. Tech is the number one market heavyweight in the growth index. I dont think in this environment you have to pay the premium that comes with those companies. I favor, you know, more of a value style investing right here. Talley, thank you very much for joining us. As we wrap things up a look at futures markets, which are basically flat following record highs yesterday. We saw all three major indices hitting record highs. Now as we go to break its valentines day. Im sure it will be an active day for you, wilfred, your first one. I cant believe you got me this. Thank you very much. Happy valentines day. Even from thousands of feet above. Because safety is never being satisfied. And always working to be better. Because safety is never being satisfied. Im vern, the orange money retirement rabbit, from voya. Im the money you save for retirement. Whos he . Hes green money, for spending today. Makes it easy to tell you apart. That, and i am better looking. I heard that. When its time to get organized for retirement, its time to get vo i provide for my family. I will use my education to help my community. I will inspire our next generation of leaders. I am a college student, but i am only 1 . Only 1 of College Students are american indian. Donate now, and help our numbers grow. Good morning. U. S. Stock markets again trading at an alltime high as fed chair janet yellen prepares to brief congress. Well be watching for possible signals that a rate hike could be coming as early as march. And breaking overnight, Michael Flynn resigns as president Trumps National security adviser. Apple trading at an alltime high. New comments from a Senior Executive give us an inside look at the companys push now into original content and today is valentines day. Tuesday, february 14, 2017. Gunther, my german shepherd, it is his birthday, and valentines day. Squawk box begins right now. Live from new york where business never sleeps this is squawk box. Good morning. Welcome to squawk box on cnbc where we are live from the Nasdaq Market site in times square. Im becker, along wiy quick, al kernen and andrew ross sorkin. Its been a huge run for the markets. It continued again yesterday when the dow was up 142 points. The s p was up 12 points, the nasdaq up by 30 points. This morning those indices are indicated to open higher again