Good morning. Im wilfred frost alongside Courtney Reagan in for sarah today. Good friday morning to you. We made it. Its friday. Nice friday song in the background for us. Sarah will join us later this hour with a preview of her exclusive interview with treasury secretary jack lew. She canceled todays holiday for this interview. Well worth it. It shows shes willing to cancel a days holiday for jack but not me. Try not to take it personally. I cant, its impossible not to. All of our viewer also watch that later starting from later this hour at about 5 45 today. Lets check in on markets at this hour. Yesterday was a disappointing day for markets. Down about a quarter to a half percent yesterday. We came off the lows for the day. The week as a whole, the dow down about 1 . Yesterday the banks were the worst performers. As you can see, we expect a bounce this morning, relatively small bounce. The dow called higher by 41 points. The s p 500 by 3 1 2, the nasdaq by 7 points. The tenyear treasury note this is why banks suffered so much yesterday. We did see yields move a bit. At the moment, 1. 775 . Yields rising again today. Not back up to the highs of the middle of the week. Alwa inflation data out of china overnight. Producer prices rising for the first time in nearly five years. Consumer pricing also picking up. Major markets in asia reversing their course well off session lows this morning or overnight. The knnikkei closer higher by a half percent. The hang seng, just about 1 , and the shanghai flat. If you look at whats going on in europe, also the data out of china on inflation, helping some of these indices. You can see its a green day nearly across the board. So far spain is the outperformer, up fairly sharply. Autos in focus with the European Union, new car sales up 7. 3 in september. Banking doing well in europe at least. Yeah. Almost a slight overreaction in asian and european trade to the chinese inflation data. The day before chinese trade disappointed, so weve seen a china riskoff trade for one day and it bounced back, people from that inflation data feeling things are not so bad. The ftse 100, even with todays gains is still down by a half percent for the week, even though the pound continued to slide. So some questions out there that its not clear that the weaker pound is always going to be a shock absorber for the economy and the ftse 100. Those concerns now if we see the pound slide further and further that it will be a negative. The broader markets, oil prices have been in the eye of the storm recently. Were up above nearly 51 today. For the week as a whole, up about 2. 2 now for wti. Another decent week. More volatility this week as opposed to just straight upwards. Dollar, lets look at that. Its been a decent week for the dollar. Its up over 1 for the week. It was a bit soft yesterday, the dollar, for the week as a whole, were ending with a strong day. The dollar gaining against the euro, the yen and the pound. The pound 1. 22 this morning. Gold prices quickly for you, gold up about a half percent for the week as a whole coming in today. Its flat today, looking at half percent gains for the week. It may be friday but we have a busy day. Lets look at todays agenda. Busy day for data. September Producer Price index and retail sales at 8 30 a. M. Eastern in the u. S. At 10 00, business inventories and Consumer Sentiment data. Well hear from many Federal Reserve officials. The two key ones, boston fed president , Eric Rosengren and janet yellen herself will be speaking at the boston fed 60th annual economic conference. Rosengren will speak first, but before that speech other own Steve Liesman interviews him exclusively at 7 30 a. M. Eastern time. Dont miss that. Rosengren dissented at the september meeting in favor of a hike. It will be interesting to hear from him, particularly before he speaks in boston. Fed chair janet yellen speaks at 1 30 p. M. Eastern time. Her comments will be live on cnbc. Switching to the corporate front, an important day for financials. Citigroup, jpmorgan, wells fargo and pnc report results before todays opening bell. Are you ready . I am ready, i think. Lets lots of coffee . Exactly. Lets have a preview of what to expect from the banks. Heading into q3 earnings, one key thing is the same as q1 and q2, expectations for the banks are fairly low and could be beaten. But one key thing is different. Bank shares have already outperformed in the past quarter, rallying around 10 , despite stocks specific underperformers. Three areas to focus on, loan growth. Having surprised to the upside there q1 and q2, theres room to disappoint this quarter, particularly on the commercial side. Number two, capital markets, having been slow in the first half, theres room for seasonal bounce in the Third Quarter. Costs, expense management remains key for all names in this lowrate movement. As for the management calls, the main focus is on the fallout from wells fargo, will it weigh on the sector, and contagion from deutsche bank, and some interesting insight there from the likes of Goldman Sachs and bank of america on whether they are benefiting in terms of market share. And loan growth. There have been some signs this slowed noticeably as the election approaches and perspectives on the election will be interesting to listen tom the key factor for the stocks for the rest of the year will likely be rate hike expectations and realities. That was a factor that the banks sell off yesterday. Very much so. So far so good. Actually in europe, the italian banks turning in good results. The u. S. Treasury department issuing final rules to crack down on tax inversions, thats when a company is acquired by a smaller foreign business in a low tax country to avoid paying the higher u. S. Tax rate. This cracks down on earnings stripping when the u. S. Subsidiary avoids taxes on domestic operations by sending them overseas as tax deductible interest payments. Got that . Sara eisen spoke with jack lew about the regulations which have farreaching implications on the business world. Well hear that conversation at 6 00 a. M. Eastern time. And a tease and a preview on Worldwide Exchange at about 5 45. In other corporate news, verizon indicating it may try to renegotiate its 4. 8 billion merger with yahoo in light of the data breach. Verizons counsel saying it is reasonable to believe that the data breach may open the doors for the renegotiations. Stocks to watch today, there are a number of them. This is ahead of the banks. Infosys reporting earnings overnight. Second quarter net profit rose by 6 , but cut its full Year Revenue Guidance which weighed on shares in the afterhours session. Down about 5 . Amazons Cloud Computing unit signed a deal with vm ware. This allows the company to run things on the amazon servers. Look at honeywell. Up in the after hours session. About 1. 3 . The Company Offering an optimistic outlook and announcing its targeting double digit earnings per share growth in 2017. Earnings of honeywell were off earlier this month due to previous guidance. Cramer got a chance to talk to honeywells ceo dave cote last nigh night. Yes, i wish i included more of this stuff. I gave credit for people understanding what our longterm profile was. I was wrong. This is one where i could have done a significantly better job of communicating this story. We tried to do it in the context of 2017 will be good. But it seemed to get totally lost. Honeywells ceo on mad money last night. Piper jaffray upgrading zumiez shares from profitable to overweight. Well have the Piper Jaffray analyst behind the note on the show later. As you can see, zumiez shares up 2 . Hp inc. , the hardware business of former hewlettpackard says it expects to cut 4,000 jobs over the next three years. It is also upping the Share Buyback program by 3 billion. Hp inc. Down 1. 7 . Still to come on Worldwide Exchange, the dollar index up more than 2 this month. Is the trend here to stay . Well ask a currency strategist and our data team crunched the numbers on which stocks should investors avoid if the greenback continues its climb . Stay tuned. Shipped from here, on this plane flown by this pilot, who owns stock in this company, that builds big things and provides benefits to this woman, with new cabinets. They all have insurance crafted personally for them. Not just coverage, craftsmanship. Not just insured. Chubb insured. Were drowning in information. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your fure. How do youolve this . You dont. You partner with a firthat 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. Happy friday. Good morning to you. Lets get you up to speed with the market action. Yesterday chinese trade data sparked a riskoff trade day sentiment around the world. Today good chinese inflation data has done the opposite. Decent returns across asia. Hong kong up 1 . That has helped european trade today. Ending the week in a positive fashion. Albeit the week as a hold in europe is just about flat. The ftse is down about a half percent, despite todays gain. That automatic correlation between the pound and the ftse 100 breaking down a bit. This means u. S. Equity futures are up. Up about 0. 2 . The dow called higher by 27 points. This comes after declines yesterday but we came off the lows during the days trade. Banks were the worst performers yesterday. Today well be looking at earnings from jpmorgan, wells and citi among others. Lets talk about todays trade of the day. Brexit fallout. In anticipation of a fed rate hike sent the dollar index up more 2 this month putting pressure on the market and corporations. So our data team at klooked at h stocks to avoid if the dollar continues its climb. Overall dollar rallies are bad for the market. Multinationals like caterpillar also saw shares tumble if you look back historically. Home depot is the only dow component that trades positive during rising dollar turmoil. For a full list go to cnbc. Com. Lets talk in more detail about the dollar rally. Joining us now is the managing director of fx strategy. Boris, good morning. Good morning. Weve seen the dollar do well and yields tick up nicely, close to 1. 8 . Is this a pretty sample trade because of fed rate expectations and a hike in december . Yes, its exactly that. Its pretty binary at this point. As long as yields go up, the Dollar Strengthens and goes forward. And in the currency market, we had a breakout in dollar yen above 1. 04, now were right back above that level. If we can push to 1. 05 in dollar yen, that would show an uptick. All systems are go for a december rate hike. As long as u. S. Yields continue to creep up higher towards that magical 2 level on the tenyear, the Dollar Strengthens. Absolutely. Im a little surprised, of course, by the extent of some of these moves. The consensus has been, okay, well get something in december, but next year moving on it will be slower than expected. So the markets particularly focused on the shortterm single hike rather than the longerterm trend . Yes, its baby steps. One step at a time. The market has been disappointed so many times over so many years and quarters over this path towards normalization. The first thing thats happening is the market wants to be certain that the fed is back on a normalization path. Having said this, youre right. All the fed officials have been warning even if they debbegin hiking, it will be a slower path. More likely a threemonth or sixmonth schedule if they continue to hike rates. Thats still better than the rest of the world. U. S. Rates are the only place in the world that are going up right now. As long as theyre on that path it should be positive for the dollar Going Forward if youre so focused on the shortterm, its a big day today for data, fed speak. Anything you could hear today that would change your viewpoint for december . Well, retail sales come in minus 2 . That could hurt us. Aside from just an exceptionally unlikely event like that, i think pretty much theres a very, very broad consensus. The most important thing, the thing thats giving the market confidence is that labor data continues to perform relatively well. As long as were manufacturing jobs, jobless claims yesterday were small, that was the single most important variable that janet yellen pointed out in her communication in september. The market is keeping a keen eye on that. As long as labor numbers are supported, Everything Else falls in place. It would be great to see a positive Consumer Spending today that would put trust to what tho that whole thesis. Sterlings slide, where does it stop . Zero. No, really, its the second biggest story in the capital markets. Its not just the fall of the sterling but whether we will have global trade on a normal basis. Sterling has felt the wrath of everybody in the marketplace that has decided if hard brexit will be the path theyre going to choose, theyre going to become an isolated economy. Uk is facing assaults not only from the negotiations of the European Union but even the wto said if they break their relationship with the European Union, they would have to renegotiate every negotiation. All of this against the background of 10 double twin deficits. So theres a tremendous amount of financial pressure. Its interesting. The market pressure, the economic pressure that youre seeing now may be going to have some political ramifications in the uk. That is i think theyll come back and be much more negotiati negotiatible with the europeans. Coming up, the top political news including comments from an outraged Michelle Obama going viral on social media. Who are you . Im vern, the orange money retirement rabbifrom voya. Vern from voya . Yep, vern from voya. Why are you orange . Thats a little weird. Really . Thats the weird part in this scenario . Look, orange money represents the money you put away for retirement. Save a little here andhere, and over time, your money could multiply. See . Ah, ok. So, why aryou orange . Fuy. See how voya can help you t organized at voya. Com. Welcome back to Worldwide Exchange. Now to politics. We couldnt stay away from too long. Donald trump is focusing his energy on North Carolina today as new polls show his numbers slipping in key battleground states. Tracie potts joins us from washington with the latest. Good morning. Reporter good morning. Slipping in part after those allegations by women of sexual misconduct. But were seeing raw emotion pouring out in this campaign. Not only from those women whose accounts have not been verified, but also from donald trump and from the first lady. Enough is enough. This has got to stop right now. Reporter Hillary Clintons most powerful voice in disbelief over Donald Trumps words about women. I cant stop thinking about this. It has shaken me to my core. It is cruel. Its frightening. And the truth is it hurts. Reporter clinton tweets im in awe. Thanks for putting into words whats in so many of our hearts. President obama blames republicans for acting too late. Dont act like this started with donald trump. I mean he did take it to a whole new level. I got to give him credit. But he didnt come out of nowhere. Its a disgrace. Reporter trump fighting fire with fire denying accusations by five women unverified by nbc. I never met these people. I dont even know who they are. Theyre madeup stories, filed right before the election. Right before the election. This is a conspiracy against you, the american people. Reporter new polls show trumps down 5 points in North Carolina, tied in ohio, two of the four states hes focusing on to win. Hes actually going to be in North Carolina for a couple of stops today. The other two states hes focusing on are florida and pennsylvania. Thank you very much for that. Tracie potts in washington. Donald trumps wife, melania, is demanding a retraction and apology from People Magazine and is threatening to sue after the magazine published a former wrig writers account. Unemployment rate, job growth and Consumer Spend iing e distrusted by donald trump supporters. 48 of the trump backers distrust the data, 5 of Hillary Clinton supporters do. Now to sports, the chargers topping the broncos in thursday night football. Philip rivers threw for 178 yards and one touchdown. The final score, san diego 21, denver 13. I was not up late enough to watch that. Looks like a good game. From the football field to the baseball diamond. The dodgers defeating the Washington Nationals 43 early this morning to win the National League division series. The dodgers will move on to face the chicago cubs in the National League championship series. That opens at Wrigley Field tomorrow night. I know so many cubs fans that are just beside themselves. We dont want to jinx this. I will stop talking now. You dont want to keep pushing it. Okay. Fair enough. Speaking of a championship run, cnbcs half time report with scott wapner hits the fiveyear mark next week. They have filled with the biggest names in investor. Half time report is the place to be. It all starts monday, halftime at noon eastern. Congrats to the team. Five years. Great lineup. Awesome market movers. Coming up, the top stories and a global round up of the news. And sara will join us with her interview with jack lew. Stay tuned, youre watching Worldwide Exchange on cnbc. Th. All the networks are great now. Were talking within a 1 difference in reliability of each other. And, sprint saves you 50 on most Current National carrier rates. Save