And good morning, welcome to Worldwide Exchange here on cnbc im domenic chu. And im Contessa Brewer sara and wilfred are off this morning. Great way to get started when youre seeing positive signs in the markets. Lets get straight to the markets as contessa mentioned were seeing green across the board on the futures side. With the dow trading the way they are, were looking at possibly a 300 point open for the dow on the upside at least if things stay the way they are right now. S p up by 32 points nasdaq indicating an open around 75, 76 points as well a lot has been driven off Interest Rates those worries with whats happening with u. S. Government bonds. So, lets take a look at those yields for right now, were seeing a move higher slightly in the tenyear treasury note yield. 2. 88 . Almost 2. 9 , the last trade there. That reassumption, contessa, on the upside for this mornings trade. Well see if that has any kind of effect on whether or not people have that risk tolerance if it stops. Weve also seen bounceback in asian equities as well hang seng down a little more than. 115 kospi was up as well, almost a full percentage point. Japanese markets were closed for a holiday. And in european equities right now, were seeing green across the boards the dax, the cac, ftse, all in positive territory and imf director Christine Lagarde said the sharp market swings over the past couple of weeks have actually been a welcome correction here. She says theyre on a major source of concern. She was speaking to cnbc in dubai. And la guard says Economic Growth is strong, but reforms are needed to avert future crisis you compare valuation, you know from a week ago, theres been a Market Correction of anywhere from 6 to 9 which, frankly, given where asset prices were very high, its in our view a welcome correction and we have observed studily, despi suddenly, despite volatility, the market pipes and mechanisms have worked well and were also seeing that the financing is still plenty and very much available for the financing of the economy, so, you know, corrections happen they were due to happen. And thats where we see it la guard says authorities need to shift to regulating activities instead of entities the imf is Forecasting Global growth at 3. 9 this year which la guard is saying a good backdrop for the reforms shes suggesting its interesting that we need a healthy correction every once in a while because it has been so long since the market has seen a pullback whatsoever so at least we think its not such a bad thing and also about regulating activities how that might trickle down is for the future to see if youre regulating those activities, rather than entities, it will make a big difference in the impact absolutely. And the market effects, perhaps are the turmoil, hasnt been limited to just the stock market although theyve been dampened in other place we want to take you to the commodities. Thats one of those battlegrounds. You take a look at Oil Inflation concerns may have been dampened over the past week. Wti crude, 60. 39, the last trade there thats up by 2 . Wti crude moving high. Ice brent crude, the benchmark in crude prices, 63. 89. Almost a 2 rise as well maybe some of that is driven by the currency markets because we know the dollar has a huge impact on these commodities. As you can see theres a dollar weakness against the euro. 1. 26 there. Dollar, 1. 0869 and in pounds, 1. 2838, 1. 3838 right now, contessa, oil, gold, commodities, certainly those things well watch lets get ready for the week ahead. Theres a fair amount of Economic Data wednesday, look for retail sales and cpi thursday, jobless claim, ppi, philly fed, Industrial Production and nahb survey friday, housing starts, import prices and consumer sentiment. As for earning, two dow components in 57 companies in the s p 500 report this week, that list includes pepsico, under armour, smemet life, kraf soups and cocacola. Joining us now on the cnbc news line, weve got fast money trader steve grasso, hes director of Institutional Sales at Stewart Frank doe steve, ive got to tell, weve been riveted with the coverage from the floor and edge elsvery else how do the markets feel, does it make it feel as though the bounce has legs . Good morning, dom, good morning, contessa. When i look at the balance we had last week, i try to put some sort of a consciousness about every other selloff ive seen. And you know, is this a Real Recovery is it a real rebound when you saw the selloff and when you saw the sellback the middle of next week, we sell off perhaps for no reason. And i asked people why did you sell off whats your opinion . People are saying inflation, due to the tenyear. You tell me then, why the yields were down on certain dates, and the market was still down. So, whats gotten me concerned, dom, is the selling. Where it doesnt matter, were still going on a daily basis, so, yes, a concern about the market as a whole being at its levels right now it feels like its just a really rebound oversold notion to market so, today is extremely crucial but, steve, when youre talking about not factoring in these bigger, broader indicators, how did that be the case weve seen this enthusiasm, theres been all of this talk about animal spirits out there isnt there something similar when youre in correction territory as well where youre just ignoring geopolitics, youre ignoring ratinerates, inflation, what a new budget does, what tax reforms does . Yeah, people have said weve ignored and shrugged off things before with the market down as we were escalating so high, so quickly. And we were overextended over that 200 average and the 50 and the 100, probably the longest time probably the longest time in history, as far as the 200day is concerned when you see that rebound, you know, i was the one saying, hey, you cant really thread this needle the last time we were this long centered above the 200, it was only 42 days so, its really difficult to pick the timing of the marketplace. By what is really peculiar to me is that when you see the market rally, and you wind up getting a selloff late in the day, where is the risk coming off and why . And if you think that the risk is done, if you think that the risk parity dies which is a real walkdown, people need to reestablish the levels and markets at fair valuation. But i dont know how to figure that out because funds really have been long and they really want to get back in line with what they see is a fair valuation, is that 2500, 2600 that remains to be seen. Steve, well be leaning on you guys and your colleagues on the floor to provide us color with whether or not we do see this bounce hold steve grasso, thank you for joining us here for the early call on Worldwide Exchange. Thank you in corporate news, it looks like qualcomm and broadcomare planning a valentines day meeting. Broadcomraised its stock to 82 per share. The wall street journal has reported that the company has secured more than 100 billion for its hostile bid and have enlisted the help of two other funds. And landon dowdy with the details now. And it has a lot to do with maybe this lawsuit, right . Hey, there, dom, thats exactly right. The weinstein woes continue. New York Attorney general Eric Schneiderman said said he has filed a suit against Harvey Weinstein, his Brother Robert and the Weinstein Company. The suit alleges that the weinstein executives and board failed to protect employees from former ceo Harvey Weinstein. One of the most influential men in hollywood and more than 70 women accused him of Sexual Misconduct the studio denies those allegations. Sneidermans lawsuit puts the negotiations on hold in a statement, weinsteins attorney told cnbc, quote, we believe that a fair investigation by mr. Sneiderman will demonstrate that many of these allegations against Harvey Weinstein are without merit. Guys, back to you. Thank you very much in other corporate news, oxycontin maker is cutting sales in half. Pharma companies have come under fire for the way theyve marketed addictive painkillers privately held purview has been accused by 14 states and ford revs up production for two suvs the automakers is planning to raise production of expedition and lincoln models both manufactured in louisville, kentucky ford is looking to boost its own Profit Margins and the u. S. Units of takato reaches an agreement that apaves the way for takata to entity bankruptcy and takatas air bags related to deaths and injuries, promising the largest recall in automotive history. And another misstep for wells fargo, and trying to make amen amends for having people buy Auto Insurance they didnt need. Wells fargo will work to make sure customers get the appropriate amount of communication. Coming up, going global. We dive in the overseas Market Action thats straight ahead. First before we head to break, check whats happening to futures because they are very much green across the board. The dow indicated it opens at 212 points so far. Stay tuned youre watching cnbc hey. Pass please. Im here to fix the elevator. Nothings wrong with the elevator. Right. But you want to fix it. Right. So who sent you . New guy. What new guy . Watson. My analysis of sensor and Maintenance Data indicates elevator 3 will malfunction in 2 days. There you go. You still need a pass. Welcome back to Worldwide Exchange. If youre just waking up or heading into market, lets get you up to speed on the Market Action, theres a lot of green on the board if you check out the equity futures. The s p is slated for right now to open up 32 points the dow by 72 points nasdaq by 75 theyre following or maybe leaving the sentiment of whats happening on friday. Whats happening in the european markets were seeing that risk on feeling on the european stocks the german dak up and cac in france up. Were seeing green in Global Markets. Lets see asia remember, japan was closed the hang seng off by 0. 2 of 1 the shanghai deposit up by 0. 75. And the kospi, 1 as well. Lets talk about oil, we have seen short term as of late for lower prices wti crude, 60. 26. Up by 1. 7 and ice crude up by 1. 5 and were seeing oil prices up as well not just as future but as a pump. Well have more on that. Coming up, riding the wave the best sectors to buy in recent volatility. 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Lets get you up to speed on the Market Action, as weve been telling you for the past 20 minutes or so, futures are up and up big the dow owns up by 32 points s p by 32 point, nasdaq by 78. After a nice big up day to close things out on friday lets get back to the Market Actionoveral overall, at market test on friday the s p 500 briefly, briefly went below its 200day moving average intraday before stocks reversed course to close sharply high per lets bring in the Technical Analyst and head of research at Janney Montgomery scott. Ive got to tell you, is it as simplistic as we saw but it sure seems short term like we did find significant support at that 200day average trend line yeah, i mean, i couldnt believe it myself, dom im a technician, we were watching the twoday moving average we were saying theres no way theyre going to bring that down and rally it off of that indicator, that particular indicator. Boy, they did. It was sort of exciting. I know theres a lot of fear baked into that last week. The markets came in very overbought into the whole correction but to come down to that 200day moving average and give us a nice strong close. And then from hearing your comments seeing the futures up very strong this morning i think thats exciting. Our take is im not entirely convinced this whole corrective cycle is completely over but a bounce jaufl the 200day is certainly a good step in the right direction. And what i would say is, going forward, were going to have this oversold rally or this strong surge today and well see what type of levels we can achieve to maybe get back on track. Even if you go and break that 200day again, a lot of technicians may agree, the direction is probably more important than closing above or below the hard deck. I mean, once that 200day rolls over, if you look back in history, when weve broken that 200day moving average and its rolled over, that tends to be where weve had much bigger problems even cyclical downturns in the market. So, a lot of tiles you can see volatility you can see choppy trading around that indicator. I think its directional buys are probably more important so its still rising wee believe 2600 on the s p on a weekly closing basis would be a strong sort of threshold to watch. We achieved that on friday we have our fingers crossed this week that perhaps we can get back on track. I think overall, beyond this correction, the method that we try to get to clients, longer term basis, we still remain bullish. You got to remember the markets came into this year, extremely overbought across multiple time frames, not just a shortterm basis. But when you look at the weekly charts or monthly charts very overbought i think the most overbought weve seen if eye few years. The fact that were seeing consolidation, forecast taking, reducing some of that froth in the market i think its a healthy thing on a longerterm thing, based on demographics and valuation cycles we think the markets are probably going a lot higher in the years old. Dan, youre joining the voices here in that optimistic outlook like Christine Lagarde of the imf where is that volatility coming from 23 billion almost have left the building so to speak so, its interesting, people have been talking about Interest Rates and i think theyve hit something. I dont think its the only thing driving this market. You watch the tenyear note yield. Its been rallying its been pushing towards 3 and thats generating a lot of fear. The fear is that were moving from a reflation father growth cycle off of that 2000 crashed bottom in 2009, a reflationary cycle off of those into inflationary times. Thats scaring a lot of investors. You got to remember think of the key playing the stage. Youve got baby boomers, gen xers and none of vus ever experienced in realtime a rising multiple, a secular bull month in stocks, against a rising interest environment and, so, this is perhaps freaking a lot of people out over the short run they say it cant be possible. You cant have multiple expansion. You cant have economic expansion in that rise well, what we did was, we looked at history and history has been very clear on this, you absolutely can have a rising Interest Rate or inflation or reflationary bull market we had it in the 40s and 50s i know that was a long time ago. Again, the market has seen this before its just this generation has not. So, i think were seeing this resetting and replacing before we move forward. Dan, thank you for joining us, Janney Montgomery stock, he watches all of the charts for us he will be doing that again for us sometime soon two big events in washington today. The white house expected to release its infrastructure plan and its budget nbcs tracie potts joins us from washington both big, tracie yeah, both a lot of money, contessa lets start with the budget. We thought that was resolved last week, right wrong. Last week was the congressional blueprint for how money should be spent what well see today is the white house rolling out its more specific and detailed plan of what they actually want to do with tax dollars they had to scramble to change it after that deal last week and it comes with a pretty big price tag. But what the budget director Mick Mulvaney says, were still asking for cash, how much could be spent on different areas. Theyre going to be urging congress not to spend as much, especially on some of those social programs that democrats wanted and to shift some of that money into the president s priorities like infrastructure. A 1. 5 trillion infrastructure plan being introduced today. Some conservative republicans already balking at the price tag. But a lot of that money is not going to come from washington. 200 billion is what theyre pitching the rest, the majority of it, from private businesses. And state and local governments. In other words, some states and cities are already talking about whether theyd have to raise taxes to fund this were talking about a plan to fix the crumbling roads and bridges in many parts of this country. And even rural internet which is going to affect a lot of people here what the Administration Says they want to do is also cut red tape but they see pushback from both sides of that, from democrats, on the environment, from republicans who are concerned about the faster approval of some of these projects and whether theyd be skipping over some important things there. The