Transcripts For CNBC Worldwide Exchange 20170426 : vimarsana

Good morning. A warm welcome to Worldwide Exchange here on cnbc. Im wilfred frost. Good morning. Im seema mody in for sara eisen. Always good to be about your side. Lovely to have you with us. U. S. Futures, interesting picture now if youre waking up. A mixed open were calling for the dow up 24 points. Nasdaq up 5. After surpassing 6,000 for the first time ever. S p 500 basically flat on the day. Keep in mind markets did rally yesterday. The dow posting its second consecutive day up 200 points. Intraday the dow ticked above 21,000. So far a positive week for equities, today the trump tax plan will be in focus. Will there be a reduction from 35 to 15 . The other big question what does that mean for the federal deficit . Will it go up if the plan is not revenue neutral . Lets look at the tenyear treasury note. Yielding around 2. 325 . The other thing to take away from markets yesterday. 9 out of 11 sectors were positive led by materials. It was broad and the performance was better than europe. It wasnt just simply a frefrnc election factor, it was a more domesticled rally yesterday down to various earnings like mcdonalds and cat. Asian trade is positive, not resoundingly for hong kong and shanghai, but japan with a gain of over 1 . European markets were for the most part positive yesterday, but much more muted. Today mixed. Germany and the ftse down slightly. France up slightly. A bit more red on the screens in italy and spain. Of course all of this coming up ahead of the ecb meeting tomorrow. Lets look at those broader markets. Oil prices resuming the downward trend after the latest data did show a rise in u. S. Crude inventory. Now were looking at wti crude back below 50 a barrel. The international gauge, brent crude at 51. 93. Looking at currencies at this hour, the euro has been on a tear after the positive outcome of the french president ial election. The euro trading at a fivemonth high. So far this year up 4 against the u. S. Dollar. The yen is a different story. Strengthening a bit at 111. 24. Looking at gold lastly, its been under a bit of pressure. Looking at where its trading right now. 1,266. Basically flat on the day. Interesting that we have had gold softening alongside the dollar softening this week. That comes down to the fact its been euro strength as opposed to broad dollar weakness, but not typical to see the dollar softening and gold prices softening in the same week. Oil as well. Wall streets attention will turn to washington today with President Trump expected to unveil his highly anticipated tax plan. Cnbcs john harwood joins us from washington. This is not going to be a fully detailed tax proposal. This has been accelerated because of the desire of President Trump to have something dramatic in the week of his first that closes out his first 100 days so some details are there, but not all the details are there. Let me start with the business rate, which our audience will be looking at most closely. Were talking about a 15 rate, top rate for corporations, but also for passthroughs which include many people who file through the individual system, but have unincorporated businesses. So that is a huge change for a whole lot of people. A lot of professionals, but also a lot of wealthy people who are able to take their rate from that individual rate of 39. 6 down to 15. But the question is does it invite gaming of the system in order to get that 15 rate . Lets look at the individual side of the code. That is less clear. The Trump Administration we believe will propose a rate below the 39. 6 top rate but maybe not as low as the 33 he ended up with in his campaign tax plan. We also expect expanded deductions or personal exemptions to provide more middle class tax relief as well as perhaps the child care tax credit that ivanka trump is talking about. What about the fiscal impact of the plan . Theres going to be a place holder for revenue in what donald trump and his aides announce today. But it does not specify how theyll offset costs of the tax cuts. For example, the house border adjustment tax is not going to be in this plan. But the place holder could eventually turn into that tax. So the trump plan is trying not to take a position on that proposal that paul ryan and kevin brady and the house feel strongly about. Now, in terms of the other impacts on the deficit, theyll assume that growth largely pays for the plan. Steven mnuchin said last week up to 2 trillion of growth would be assumed to pay for the tax cuts in this plan during the campaign when donald trump proposed his plan, up to 4 trilt ond trillion of additional deficits was forecast. Theres a whole lot we dont know, wilfred and seema, but well see that donald trump is going to at least get the ball rolling today on something that is probably more appropriately called a tax cut than tax reform because we simply dont have the architecture of tax reform. As you said, a lot we still dont know. A tax plan that has this shape to it, some concessions granted over the past couple of weeks, like not funding the wall, will it pass . Thats the first key question. Will it get enough support to pass . Highly doubtful. I would expect that in the end some sort of tax cut will pass. But getting down to 15 is difficult. Thats why the house, which only got to 20 on its corporate rate and did not include the pass through provision, the house got down to 20 by including that border adjustment tax which raised 1 trillion over ten years. Its difficult to come up with the money to finance tax cuts. If youre not willing to do that, if you shy away from the specifics on cushing deductions to make it easier to get the rate down, very hard to get. There you saw a cautious response when initial reports leaked out yesterday from the administration that they would go to 15 . You had some republican members say whoa, that goes pretty far. So thats a fairly good sign that he wont get all the way there. Is there a chance, john, if this tax plan does not garner support from the democrats, that the republicans will use their ability to implement the reconciliation process to get that tax cut in . That is how they intend to pursue this. Theyre not theres some disagreements between house and senate. The house wants a republicanonly plan. The senate is more inclined to seek democratic support. This is certainly a plan that would have no chance of getting democratic support. You may find a coming together as the plan is moderated in the congress. You may get some democratic support, but in the end theyre counting on being able to pass this with 51 votes in the senate. Thats 50 republicans and the Vice President to break the tie if they lose a couple. Financial question, no border adjustment tax expected what about repatriation tax . We do expect a lower rate for repatriation, perhaps 10 to bring some of that money back from overseas. Not clear exactly whether the initial rate will be the permanent rate, but there will be a lower rate for repatriation. John harwood for us in washington. Commerce secretary wilbur ross expects to complete rewriting the north American Free trade agreement this year. Ross also says the u. S. Is considering launching trade actions to protect u. S. Aluminum, semiconductor and ship builder industries. In an interview with the wall street journal, the commerce secretary said he is considering ramping up free trade talks with the eu, United Kingdom and japan and added he would consider reviving deals with south korea and china. The chairman of the federal Communications Commission is expected to unveil his plan for revamping Net Neutrality today. Under the Obama Administration, the fcc passed open internet rules that didnt allow blocked online content. T it is certainly a busy day in washington. Every u. S. Senator has been invited to the white house today for an unusual meeting to discuss the standoff with north korea. President trump is expected to drop by the gathering. Turning to the agenda on wall street, earnings take center stage, boeing, fiat chrysler, smithkline, Procter Gamble and twitter report before the bell. After the close, amgen and pay pal. Bank of americas annual Shareholder Meeting today. The big vote on the table is to split the roles of ceo and chairman. That was on the agenda last year. Brian moynihan won it convincingly. Nobody expects that to go against him. On the economic front, the bank of japan held the first part of its twoday policy meeting. The boj is expected to keep policy unchanged. That decision tomorrow. To the big movers after the bell, chipotle shares getting a premarket pop after reporting strong results but the craving was overshadowed by a data breach. Landon dowdy has that story. Reporter shares of chipotle up about 3 in early trading. The fast food chain reporting better than expected earnings as more customers headed to the restaurants and spent more money while there. Samestore sales rose 17. 8 in the First Quarter, well above wall street forecasts, but the Earnings Report wasnt all so rosie. Chipotle told investors they had a data breach. Customers who used a credit card within the last month could be affected. We immediately began an investigation with the help of leading cybersecurity firms, Law Enforcement and our payment processor. We believe actions we have taken stopped the unauthorized activity and we implemented additional security enhancements. Our investigation is focused on current transactions that occurred from march 24, 2017 to april 182017. News of the data breach capping some of chipotles gains. Still the company has been struggling to recover from that massive e. Coli outbreak two years ago. Back over to you. Landon, thank you very much for that. Credit suisse returned to profitability in the First Quarter beating forecasts on a surge in the banks Wealth Management business. The Company Plans to raise about 4 billion in new shares. The ceo spoke to cnbc earlier today about why Credit Suisse is raising capital. It was always the intention of Credit Suisse to raise 2 to 4 billion in 2017. We have an option to do that, the ipo of the swiss business. At the time the company was in a much different situation. Credit suisse also ditching plans to float a small stake in its domestic swiss unit. The market liking this. Up 2. 4 . Theyve been slow to turn around under Tidjane Thiam v to say that. He needs to start delivering now. This is a bit of a delivery but they need to see that consistently, many say he has been under pressure. Shares of u. S. Steel down sharply now after the Company Reported an unexpected First Quarter loss. Revenue also missing forecasts. The ceo says operating challenges at the companys flat rolled facilities prevented it from benefiting from improved market conditions. Shares down 16 right now. At ts First Quarter earnings were in line with forecast but revenues missed. At t says consumers are holding on to their phones longer, and rivals offered new promotions on unlimited data plans, something the ceo addressed on the conference call. This has made an already competitive market even more so. And our response to the limited data plans was probably a little slow. And we lost some share in the quarter. But it was really important that our unlimited offers be unique and play to our strengths. Shares of at t down fractionally at this hour. Arconics Quarterly Results topping streets estimates. They saw a 4. 5 sales bump from a year earlier. Texas instruments posting a 13. 1 revenue increase for the latest quarter beating analyst expectations. The chipmaker saying its positive results were driven by continued strength in enindustrial and automotive markets. Shares down three quarters of a percent. Wynn results reporting a First Quarter profit. The macau unit seeing a 26 jump from net profit from a year earlier thanks to higher casino revenue. The company telling investments it plans on starting construction as early as december on the first paz of the 1 1. 5 billion Paradise Park. I have booked a trip to vegas in october. You love vegas. Theres so much more to see in the united states. Including vegas. Fine. One night in vegas on the way back from california. Just keep it there. Whatever happens there, stay there. Booked for the first weekend of october. I cannot wait. Coming up, the maker of ugg boots considering a possible sale. Well tell you about the activist pressure on deckers outdoor. First oil prices this morning under pleasure once again. Stay tuned, youre watching Worldwide Exchange on cnbc. Safety isnt a list of boxes to check. Its taking the best technologies out there and adapting them to work for you. The ultrasound that can see inside patients, can also detect early signs of corrosion at our refineries. Hightech military cameras that see through walls, can inspect our pipelines to prevent leaks. Remotecontrolled aircraft, can help us identify potential problems and stop them in their tracks. At bp, safety is never being satisfied. And always working to be better. If you want to stay on top of your health, one simple thing to do is take the pledge to go and get screened for the cancers that might affect you. So stand up to cancer and take the pledge at getscreenednow. Org it only takes a minute to take care of yourself, and nothing rhymes with org. But weve got the get tdigital tools to help. Now with xfinitys my account, you can figure things out easily, so you wont even have to call us. Change your wifi password to something you can actually remember, instantly. Add that premium channel, and watch the show everyones talking about, tonight. And the bill you need to pay . Do it in seconds. Because we should fit into your life, not the other way around. Go to xfinity. Com myaccount welcome back to the show. Lets get you up to speed on markets now. As you can see, futures are now pointing to a mixed open. Up right now 21 points. Nasdaq up 4, this after breaking 6,000 for the first time ever. The nasdaq hitting an alltime high. Really led by those f. A. N. G. Stocks, talking about facebook, amazon, netflix, google, all up between 12 and 24 already this year. The s p 500 basically flat. Today all eyes on President Trumps tax plan. Will be a reduction in the Corporate Tax rate from 35 to 15 as reports suggest . Looking at the currency market. If we get any word about a v. A. T. Tax, that could impact the currency. The dollar firmer against a basket of currencies. All 50 members of wells fargos board were reelected to new oneyear terms at the Shareholder Meeting yesterday. The reelections came even though there was some angry opposition. Some of the nominees winning percentages as low as 53 . Steven sanger saying the board has heard the clear message of dissatisfaction and realize theres a great deal of work to be done. Shares have not really moved off the back of it. We mentioned some of the low percentages there, 53 , thats historically low for this sort of vote. Its a majority which was needed, but very low in the grand scheme of things. Steven sanger only got 56 . A lot of pressure on the board but they survived it. They wouldnt have survived it without the 10 or so vote that they got from warren buffett. It was close. Pretty tough day for those guys. Highlights the ongoing pressure they face. The ongoing winner, tim sloan. Almost 100 vote to approve him going forward. Thats because he only got up to the board in 2016. This was a vote on his board position as opposed to his role as ceo. If you step back from the last two months, including the board rer vi review, hes come off well on this. Shares of capital one under pressure after the Company Posted weaker than expected earnings and revenues. The company reporting a 20 drop in net income as losses jumped for u. S. Credit cards. Shares down over 3 . Juniper Networks Beating the street. The Company Forecasting this quarters profit a penny higher than analysts consensus. The stock higher by 3. 3 . Looking at irobot topping expectations on the top and bottom line and now raising guidance. The consumer Robot Company reporting Revenue Growth of 32 . Edward Life Sciences posting better than expected results. Ugg brand owner deshgs o deckers outdoors exploring strategic alternatives. Up 6 . Costco will pay a special dividend of 7 a share, 3 3. 1 billion payout, this on top of the regular cash dividend. Its up 3 . Coming up on the show, play ball. Well tell you why baseball great derek jeter and former Florida Governor jeb bush are teaming up. Heres a hint. It has nothing to do with politics. Does it have something to do with baseball . Perhaps. I dont know. Its a tease. It was a tease to me, too. First, as we head to break, here is the National Forecast from bill karins. Good morning. Watching a big storm system moving into the middle of the country. That will pose a lot of problems for Business Travel. Dreary in the northeast that storm moving out during the day. Lets talk about the dangerous stuff. We have a moderate risk of severe storms. This area in red. We also have an enhanced risk and a slight risk. In all, about 12 Million People at risk. If were going to have bad stuff, possibility of a strong tornado or two here. Watch out louisiana, arkansas especially. Wind damage threat for memphis as we go throughout the evening hours. A lot of airport problems in the middle of the country. West coast looks good. Finally some nicer weather arrives in the midatlantic and new york down to d. C. For thursday. Thats your Business Travel forecast. More Worldwide Exchange<\/a> here on cnbc. Im wilfred frost. Good morning. Im seema mody in for sara eisen. Always good to be about your side. Lovely to have you with us. U. S. Futures, interesting picture now if youre waking up. A mixed open were calling for the dow up 24 points. Nasdaq up 5. After surpassing 6,000 for the first time ever. S p 500 basically flat on the day. Keep in mind markets did rally yesterday. The dow posting its second consecutive day up 200 points. Intraday the dow ticked above 21,000. So far a positive week for equities, today the trump tax plan will be in focus. Will there be a reduction from 35 to 15 . The other big question what does that mean for the federal deficit . Will it go up if the plan is not revenue neutral . Lets look at the tenyear treasury note. Yielding around 2. 325 . The other thing to take away from markets yesterday. 9 out of 11 sectors were positive led by materials. It was broad and the performance was better than europe. It wasnt just simply a frefrnc election factor, it was a more domesticled rally yesterday down to various earnings like mcdonalds and cat. Asian trade is positive, not resoundingly for hong kong and shanghai, but japan with a gain of over 1 . European markets were for the most part positive yesterday, but much more muted. Today mixed. Germany and the ftse down slightly. France up slightly. A bit more red on the screens in italy and spain. Of course all of this coming up ahead of the ecb meeting tomorrow. Lets look at those broader markets. Oil prices resuming the downward trend after the latest data did show a rise in u. S. Crude inventory. Now were looking at wti crude back below 50 a barrel. The international gauge, brent crude at 51. 93. Looking at currencies at this hour, the euro has been on a tear after the positive outcome of the french president ial election. The euro trading at a fivemonth high. So far this year up 4 against the u. S. Dollar. The yen is a different story. Strengthening a bit at 111. 24. Looking at gold lastly, its been under a bit of pressure. Looking at where its trading right now. 1,266. Basically flat on the day. Interesting that we have had gold softening alongside the dollar softening this week. That comes down to the fact its been euro strength as opposed to broad dollar weakness, but not typical to see the dollar softening and gold prices softening in the same week. Oil as well. Wall streets attention will turn to washington today with President Trump<\/a> expected to unveil his highly anticipated tax plan. Cnbcs john harwood joins us from washington. This is not going to be a fully detailed tax proposal. This has been accelerated because of the desire of President Trump<\/a> to have something dramatic in the week of his first that closes out his first 100 days so some details are there, but not all the details are there. Let me start with the business rate, which our audience will be looking at most closely. Were talking about a 15 rate, top rate for corporations, but also for passthroughs which include many people who file through the individual system, but have unincorporated businesses. So that is a huge change for a whole lot of people. A lot of professionals, but also a lot of wealthy people who are able to take their rate from that individual rate of 39. 6 down to 15. But the question is does it invite gaming of the system in order to get that 15 rate . Lets look at the individual side of the code. That is less clear. The Trump Administration<\/a> we believe will propose a rate below the 39. 6 top rate but maybe not as low as the 33 he ended up with in his campaign tax plan. We also expect expanded deductions or personal exemptions to provide more middle class tax relief as well as perhaps the child care tax credit that ivanka trump is talking about. What about the fiscal impact of the plan . Theres going to be a place holder for revenue in what donald trump and his aides announce today. But it does not specify how theyll offset costs of the tax cuts. For example, the house border adjustment tax is not going to be in this plan. But the place holder could eventually turn into that tax. So the trump plan is trying not to take a position on that proposal that paul ryan and kevin brady and the house feel strongly about. Now, in terms of the other impacts on the deficit, theyll assume that growth largely pays for the plan. Steven mnuchin said last week up to 2 trillion of growth would be assumed to pay for the tax cuts in this plan during the campaign when donald trump proposed his plan, up to 4 trilt ond trillion of additional deficits was forecast. Theres a whole lot we dont know, wilfred and seema, but well see that donald trump is going to at least get the ball rolling today on something that is probably more appropriately called a tax cut than tax reform because we simply dont have the architecture of tax reform. As you said, a lot we still dont know. A tax plan that has this shape to it, some concessions granted over the past couple of weeks, like not funding the wall, will it pass . Thats the first key question. Will it get enough support to pass . Highly doubtful. I would expect that in the end some sort of tax cut will pass. But getting down to 15 is difficult. Thats why the house, which only got to 20 on its corporate rate and did not include the pass through provision, the house got down to 20 by including that border adjustment tax which raised 1 trillion over ten years. Its difficult to come up with the money to finance tax cuts. If youre not willing to do that, if you shy away from the specifics on cushing deductions to make it easier to get the rate down, very hard to get. There you saw a cautious response when initial reports leaked out yesterday from the administration that they would go to 15 . You had some republican members say whoa, that goes pretty far. So thats a fairly good sign that he wont get all the way there. Is there a chance, john, if this tax plan does not garner support from the democrats, that the republicans will use their ability to implement the reconciliation process to get that tax cut in . That is how they intend to pursue this. Theyre not theres some disagreements between house and senate. The house wants a republicanonly plan. The senate is more inclined to seek democratic support. This is certainly a plan that would have no chance of getting democratic support. You may find a coming together as the plan is moderated in the congress. You may get some democratic support, but in the end theyre counting on being able to pass this with 51 votes in the senate. Thats 50 republicans and the Vice President<\/a> to break the tie if they lose a couple. Financial question, no border adjustment tax expected what about repatriation tax . We do expect a lower rate for repatriation, perhaps 10 to bring some of that money back from overseas. Not clear exactly whether the initial rate will be the permanent rate, but there will be a lower rate for repatriation. John harwood for us in washington. Commerce secretary wilbur ross expects to complete rewriting the north American Free<\/a> trade agreement this year. Ross also says the u. S. Is considering launching trade actions to protect u. S. Aluminum, semiconductor and ship builder industries. In an interview with the wall street journal, the commerce secretary said he is considering ramping up free trade talks with the eu, United Kingdom<\/a> and japan and added he would consider reviving deals with south korea and china. The chairman of the federal Communications Commission<\/a> is expected to unveil his plan for revamping Net Neutrality<\/a> today. Under the Obama Administration<\/a>, the fcc passed open internet rules that didnt allow blocked online content. T it is certainly a busy day in washington. Every u. S. Senator has been invited to the white house today for an unusual meeting to discuss the standoff with north korea. President trump is expected to drop by the gathering. Turning to the agenda on wall street, earnings take center stage, boeing, fiat chrysler, smithkline, Procter Gamble<\/a> and twitter report before the bell. After the close, amgen and pay pal. Bank of americas annual Shareholder Meeting<\/a> today. The big vote on the table is to split the roles of ceo and chairman. That was on the agenda last year. Brian moynihan won it convincingly. Nobody expects that to go against him. On the economic front, the bank of japan held the first part of its twoday policy meeting. The boj is expected to keep policy unchanged. That decision tomorrow. To the big movers after the bell, chipotle shares getting a premarket pop after reporting strong results but the craving was overshadowed by a data breach. Landon dowdy has that story. Reporter shares of chipotle up about 3 in early trading. The fast food chain reporting better than expected earnings as more customers headed to the restaurants and spent more money while there. Samestore sales rose 17. 8 in the First Quarter<\/a>, well above wall street forecasts, but the Earnings Report<\/a> wasnt all so rosie. Chipotle told investors they had a data breach. Customers who used a credit card within the last month could be affected. We immediately began an investigation with the help of leading cybersecurity firms, Law Enforcement<\/a> and our payment processor. We believe actions we have taken stopped the unauthorized activity and we implemented additional security enhancements. Our investigation is focused on current transactions that occurred from march 24, 2017 to april 182017. News of the data breach capping some of chipotles gains. Still the company has been struggling to recover from that massive e. Coli outbreak two years ago. Back over to you. Landon, thank you very much for that. Credit suisse returned to profitability in the First Quarter<\/a> beating forecasts on a surge in the banks Wealth Management<\/a> business. The Company Plans<\/a> to raise about 4 billion in new shares. The ceo spoke to cnbc earlier today about why Credit Suisse<\/a> is raising capital. It was always the intention of Credit Suisse<\/a> to raise 2 to 4 billion in 2017. We have an option to do that, the ipo of the swiss business. At the time the company was in a much different situation. Credit suisse also ditching plans to float a small stake in its domestic swiss unit. The market liking this. Up 2. 4 . Theyve been slow to turn around under Tidjane Thiam<\/a> v to say that. He needs to start delivering now. This is a bit of a delivery but they need to see that consistently, many say he has been under pressure. Shares of u. S. Steel down sharply now after the Company Reported<\/a> an unexpected First Quarter<\/a> loss. Revenue also missing forecasts. The ceo says operating challenges at the companys flat rolled facilities prevented it from benefiting from improved market conditions. Shares down 16 right now. At ts First Quarter<\/a> earnings were in line with forecast but revenues missed. At t says consumers are holding on to their phones longer, and rivals offered new promotions on unlimited data plans, something the ceo addressed on the conference call. This has made an already competitive market even more so. And our response to the limited data plans was probably a little slow. And we lost some share in the quarter. But it was really important that our unlimited offers be unique and play to our strengths. Shares of at t down fractionally at this hour. Arconics Quarterly Results<\/a> topping streets estimates. They saw a 4. 5 sales bump from a year earlier. Texas instruments posting a 13. 1 revenue increase for the latest quarter beating analyst expectations. The chipmaker saying its positive results were driven by continued strength in enindustrial and automotive markets. Shares down three quarters of a percent. Wynn results reporting a First Quarter<\/a> profit. The macau unit seeing a 26 jump from net profit from a year earlier thanks to higher casino revenue. The company telling investments it plans on starting construction as early as december on the first paz of the 1 1. 5 billion Paradise Park<\/a>. I have booked a trip to vegas in october. You love vegas. Theres so much more to see in the united states. Including vegas. Fine. One night in vegas on the way back from california. Just keep it there. Whatever happens there, stay there. Booked for the first weekend of october. I cannot wait. Coming up, the maker of ugg boots considering a possible sale. Well tell you about the activist pressure on deckers outdoor. First oil prices this morning under pleasure once again. Stay tuned, youre watching Worldwide Exchange<\/a> on cnbc. Safety isnt a list of boxes to check. Its taking the best technologies out there and adapting them to work for you. The ultrasound that can see inside patients, can also detect early signs of corrosion at our refineries. Hightech military cameras that see through walls, can inspect our pipelines to prevent leaks. Remotecontrolled aircraft, can help us identify potential problems and stop them in their tracks. At bp, safety is never being satisfied. And always working to be better. If you want to stay on top of your health, one simple thing to do is take the pledge to go and get screened for the cancers that might affect you. So stand up to cancer and take the pledge at getscreenednow. Org it only takes a minute to take care of yourself, and nothing rhymes with org. But weve got the get tdigital tools to help. Now with xfinitys my account, you can figure things out easily, so you wont even have to call us. Change your wifi password to something you can actually remember, instantly. Add that premium channel, and watch the show everyones talking about, tonight. And the bill you need to pay . Do it in seconds. Because we should fit into your life, not the other way around. Go to xfinity. Com myaccount welcome back to the show. Lets get you up to speed on markets now. As you can see, futures are now pointing to a mixed open. Up right now 21 points. Nasdaq up 4, this after breaking 6,000 for the first time ever. The nasdaq hitting an alltime high. Really led by those f. A. N. G. Stocks, talking about facebook, amazon, netflix, google, all up between 12 and 24 already this year. The s p 500 basically flat. Today all eyes on President Trump<\/a>s tax plan. Will be a reduction in the Corporate Tax<\/a> rate from 35 to 15 as reports suggest . Looking at the currency market. If we get any word about a v. A. T. Tax, that could impact the currency. The dollar firmer against a basket of currencies. All 50 members of wells fargos board were reelected to new oneyear terms at the Shareholder Meeting<\/a> yesterday. The reelections came even though there was some angry opposition. Some of the nominees winning percentages as low as 53 . Steven sanger saying the board has heard the clear message of dissatisfaction and realize theres a great deal of work to be done. Shares have not really moved off the back of it. We mentioned some of the low percentages there, 53 , thats historically low for this sort of vote. Its a majority which was needed, but very low in the grand scheme of things. Steven sanger only got 56 . A lot of pressure on the board but they survived it. They wouldnt have survived it without the 10 or so vote that they got from warren buffett. It was close. Pretty tough day for those guys. Highlights the ongoing pressure they face. The ongoing winner, tim sloan. Almost 100 vote to approve him going forward. Thats because he only got up to the board in 2016. This was a vote on his board position as opposed to his role as ceo. If you step back from the last two months, including the board rer vi review, hes come off well on this. Shares of capital one under pressure after the Company Posted<\/a> weaker than expected earnings and revenues. The company reporting a 20 drop in net income as losses jumped for u. S. Credit cards. Shares down over 3 . Juniper Networks Beating<\/a> the street. The Company Forecasting<\/a> this quarters profit a penny higher than analysts consensus. The stock higher by 3. 3 . Looking at irobot topping expectations on the top and bottom line and now raising guidance. The consumer Robot Company<\/a> reporting Revenue Growth<\/a> of 32 . Edward Life Sciences<\/a> posting better than expected results. Ugg brand owner deshgs o deckers outdoors exploring strategic alternatives. Up 6 . Costco will pay a special dividend of 7 a share, 3 3. 1 billion payout, this on top of the regular cash dividend. Its up 3 . Coming up on the show, play ball. Well tell you why baseball great derek jeter and former Florida Governor<\/a> jeb bush are teaming up. Heres a hint. It has nothing to do with politics. Does it have something to do with baseball . Perhaps. I dont know. Its a tease. It was a tease to me, too. First, as we head to break, here is the National Forecast<\/a> from bill karins. Good morning. Watching a big storm system moving into the middle of the country. That will pose a lot of problems for Business Travel<\/a>. Dreary in the northeast that storm moving out during the day. Lets talk about the dangerous stuff. We have a moderate risk of severe storms. This area in red. We also have an enhanced risk and a slight risk. In all, about 12 Million People<\/a> at risk. If were going to have bad stuff, possibility of a strong tornado or two here. Watch out louisiana, arkansas especially. Wind damage threat for memphis as we go throughout the evening hours. A lot of airport problems in the middle of the country. West coast looks good. Finally some nicer weather arrives in the midatlantic and new york down to d. C. For thursday. Thats your Business Travel<\/a> forecast. More Worldwide Exchange<\/a> when we come back. Ssive aggressive. Hey, hey, hey, there are no bad suggestions here. No matter how lame they are. Well said, ann. Ive always admired how you just say whats in your head, without thinking. Very brave. Good point ted. Youre living proof that looks arent everything. Thank you. Welcome. So, fedex helped simplify our ecommerce business and this is not a passive aggressive environment. I just wanted to say, you guys are doing a great job. Whats that supposed to mean . Fedex. Helping Small Business<\/a> simplify ecommerce. Good morning. Welcome back. A market update. Yesterday strong gains for the dow in particular. Up 200 points for the second day in a row. Over 1 for the second day in a row. The s p and the nasdaq up a bit less, around 0. 6, 0. 7 . The important thing for that performance yesterday is that it outperformed europe. Clearly monday was led by the French Election<\/a> result. Yesterday europe a bit more muted as it is today. The u. S. Continued to perform. Good earnings out there. The likes of mcdonalds, caterpillar helped as well as expectations for the tax plan which we will get details on today. Futures in light of that expectation. Flat. Treading water. A bit of red. A bit of green. Going to show you gold prices and oil prices quickly. Interesting moves in gold it has been slipping this week despite the dollar slipping at the same time. Not always that we see that relationship. Flat today. But at the end its started to come off over the last couple of days. Oil prices importantly yesterday did not fall for the first day in six days. They had been down about 6 over the prior week. Today flat, but needed to step that slippage, 49. 4 for wti this morning. A future hall of famer and a member of a u. S. Political dynasty are teaming up to buy a Major League Baseball<\/a> team. Reports say that a group led by former new york yankees star derek jeter and former Florida Governor<\/a> jeb bush have won the bid to buy the marlins for 1 1. Billion. Current owner, Jeffrey Lurie<\/a> bought the team in 2002 for 158 million. The sale could take several months. Jeter retired in 2014 after playing 20 years with the yankees, bushs brother, george w. Bush, was once part owner of the texas rangers. There we go. Still to come, the top stories and a round up of the Global Markets<\/a> plus stocks to watch including the story behind u. S. Steel. Why shares are down 16 . Stay tuned, youre watching Worldwide Exchange<\/a> on cnbc. Its what busch is known for. What are you known for . Im indecisive. Scratch that. No, thats right. Although. [sfx buschhhhh] if you want to stay on top of your health, one simple thing to do is take the pledge to go and get screened for the cancers that might affect you. So stand up to cancer and take the pledge at getscreenednow. Org it only takes a minute to take care of yourself, and nothing rhymes with org. If you want to stay on top of your health, one simple thing to do is take the pledge to go and get screened for the cancers that might affect you. So stand up to cancer and take the pledge at getscreenednow. Org it only takes a minute to take care of yourself, and nothing rhymes with org. Good morning. Futures pointing to a higher open as the nasdaq tops 6,000 for the first time ever. Big tax cuts coming. President trump expected to roll out a bold new plan to slash Corporate Tax<\/a>es today. And what did beyonce, elon musk and the pope have in common . Theyre all in todays top trending stories segment. Its wednesday, april 26, 2017, youre watching Worldwide Exchange<\/a> on cnbc. Good morning. Welcome to Worldwide Exchange<\/a> on cnbc. Im wilfred frost. Im seema mody in for sara eisen today. I like the music pick a little lemonade from beyonce. And looking forward to that trending story segment. Today is all about trumps tax plan. Futures are indicating a higher open when you look at the dow, which is higher by 22 points. So the rally could continue. Yesterday the dow posting its second consecutive day of 200 point gains. The big movers and winners, caterpillar, mcdonalds Goldman Sachs<\/a> having the most positive impact. The nasdaq up 6 points now. Surpassing 6,000 yesterday for the first time ever. Helped by names like netflix, facebook and amazon, those f. A. N. G. Names, also small cap names participating. The s p 500 off right now. Looking at shares in asia, the bank of Japan Holding<\/a> their twoday policy meeting. The announcement expected tomorrow. Right now stocks, as you can see, closing in the green. The nikkei up 1 . Hang seng higher as well. Chinese markets seeing a bit of gains by around 0. 2 . In europe, politics and the outcome of the french president ial election sending shares higher on monday and tuesday. On wednesday, stocks under a bit of pressure, fractionally. The french cac slightly higher, just by 0. 5 . Though we should point out the italian stock market a sizable move to the down side by 0. 6 . The ecb policy meeting tomorrow. A lot of talk about whether the political risks subside, whether the central bank will start to look at tapering. We know the economic recovery in wru europe has been notable. The Unemployment Rate<\/a> has been dropping the past couple of months. Oil prices have been slipping until yesterday. They were down six days in a row. Around 6 in a week. Yesterday they were up about 0. 7 . Just offsetting that by 0. 2 today. 49. 46 the price of wti. Tenyear treasury note, did enjoy a bit of reflation on monday as did global yields as the risk stepped back in light of the French Election<\/a> first round result. Not Much Movement<\/a> yesterday. 2. 327 this morning. Dollar board for you. The dollar index hit its lowest level since november yesterday. The euro topped 1. 095. At 1. 09 this morning. Generally the story this week has been the dollar slipping, more because its been the euro rising sharply than necessarily a broad and pronounced move south by the dollar. Today the dollar is bouncing back a bit. About 0. 10 against the euro, yen and pound pairings. Gold prices have been weak so far over the last couple of days. Dont 0. 8 yesterday. Second negative day in a row. Thats of interest because its alongside a softer dollar. Not really playing out today. Gold prices flat at 1,266. Today at the white house, 1 30 eastern treasury secretary Steven Mnuchin<\/a> and gary cohen are expected to unveil trumps new tax plan. The proposal will reportedly slash the Corporate Tax<\/a> rate to 15 from 35 . Its also expected to bring down the rate multinationals pay on overseas profits to 10 from the current 35 . Separately the president has also invited 100 senators to the white house to discuss north korea. That meeting expected to get underway later this afternoon. The fcc will unveil big changes to Net Neutrality<\/a> rules. Those rules put in place two years ago under the Obama Administration<\/a> forced Internet Service<\/a> providers to treat all internet traffic the same. The fcc is looking to overturn many of those restrictions. Well know more when the fcc chair speaks late every todayr washington. A federal judge blocked an executive order by President Trump<\/a> on sanctuary cities. A portion of the order signed by the president in late january stimulates that municipalities serving as sanctuary cities, meaning they protect immigrants from deportation, may not receive federal grants. Two california cities sued and yesterday a u. S. District judge issued a preliminary injunction blocking the order arguing federal funding not related to immigration cannoten thre be thd because the president disapproves with enforcement. The u. S. Military started moving parts of the antimissile Defense System<\/a> to a Deployment Site<\/a> in south korea. Key parts of the system have been installed a day after north korea celebrated its military. Because of the rising political tensions with north korea, the united states, south korea being our key ally, weve been building up this antimissile called the f. A. D. , but in response china is upset about this move. Theyve been shutting down south korean operations on the mainland. Thats why youre seeing protests happening in south korea. China launched the first air catastrophe carrier it built from scratch. The ship was decorated with red flags and streamers as it was towed out of a shipyard earlier today. The vessel which is more than 1,000 feet long, has an upwards sloping ski jump deck. It will join the first Aircraft Carrier<\/a> which was made from a former soviet ship bought from the ukraine. The ship is likely to be used for training and wont Enter Service<\/a> until 2020. Wow. Looks cool and different in designwise. But im amazed thats their first one that they built themselves. And only the second in total they have. The other bought off the ukraine. That highlights the difference, how far behind they are in terms of military might. In some ways theyre leaders when it comes to the economy but in other ways catching up. An interesting look there. Moving on to the top trending stories excuse me, top earnings stories. Boeing, fiat chrysler, smithkline, Procter Gamble<\/a> and twitter report before the bell. After the close, amgen and pay pal. Bank of americas annual Shareholder Meeting<\/a> today. The big vote on the table is to split the roles of ceo and chairman. That was on the agenda last year. Brian moynihan won it convincingly. On the economic front, the bank of japan held the first part of its twoday policy meeting. The boj is expected to keep policy unchanged. That decision tomorrow. Well have it on Worldwide Exchange<\/a> for you tomorrow morning. To a big stock mover today. U. S. Steel shares are plunging after a surprise loss. Landon dowdy joins us with the details. Shares of u. S. Steel tanking more than 16 in early trading today as the steelmaker reported an unexpected loss for the quarter. The firm announcing a loss of 83 cents a share. A far cry from the earnings of 35 cents that the street was expecting. Revenues coming in at 2. 73 billion versus expectations of 2. 95 billion. The co saying while Segment Results<\/a> improved over 2 200 million compared with the First Quarter<\/a> of 2016, operating challenges at the flat rolled facilities prevented us from fully improved market conditions. Back over to you. Thank you very much. Some other stocks on the move, chip chep shaotle shares pop after an earnings beat, but also warnings of a credit breach. At ts First Quarter<\/a> earnings were in line with forecast but revenues missed. At t says consumers are holding on to their phones longer, and rivals offered new promotions on unlimited data plans, something the ceo addressed on the conference call. Wynn resorts reporting a profit. The macau unit seeing a 26 jump in net profit from a year earlier. The company telling investors it plans to Start Construction<\/a> as early as december on the first phase of its 1. 5 Paradise Park<\/a> off the las vegas strip. Wynn up 4 . And edwards Life Sciences<\/a> beating q1 forecast. The company earning 1. 06 a share last quarter. The companys also raising its fullyear outlook up 9 . Still to come on Worldwide Exchange<\/a>, why the internet is buzzing over beyonce, elon musk and the pope. An odd pairing trio, excuse me. Top trending stories on deck. As we look at how things shape up in europe, mixed picture this morning. Coming off the back of slight gains yesterday and of course stellar gains on monday after that French Election<\/a> result. Were back in a couple minutes. Think again. This is the new new york. We are building new airports all across the state. New roads and bridges. New mass transit. New business friendly environment. New lower taxes. And new University Partnerships<\/a> to grow the businesses of tomorrow today. Learn more at esd. Ny. Gov knows how it feels to seeetes your numbers go up, despite your best efforts. But what if you could turn things around . What if you could love your numbers . Discover oncedaily invokana\u00ae. Its the 1 prescribed sglt2 inhibitor that works to lower a1c. Invokana\u00ae is a pill used along with diet and exercise to significantly lower blood sugar in adults with type 2 diabetes. And in most clinical trials, the majority reached an a1c goal of 7 percent or lower. Invokana\u00ae works around the clock by sending some sugar out of your body through the process of urination. Its not for lowering systolic Blood Pressure<\/a> or weight, but it may help with both. 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Ask your doctor about it by name. Top trending stories for you. Pope Francis Holding<\/a> a surprise ted talk. The pope who spoke directly from the vatican via video link was translated from italian to english. He was urning the wor ingsaid t the more your action also have an impact on people. 80 years old. Switching to music, beyonce launching a new formation scholarship for young women. The charitys debut is in honor of the oneyear anniversary of her lemonade album release. The formation scholar awards caters to women u. Didnt win album of the year. Exactly, adele did. Shes catering to young women who are willing to think outside the box. Beyonce will award the scholarships to four students pursuing degrees in creative arts, music, literature or africanamerican studies. Four u. S. Schools signed on to be a part of the program. Each offering a scholarship to a young woman. Elon musk is upping his instagram game. He posted yet another pick on social media his third this week. Earlier in the week musk confirmed his relationship with amber herd on instagram. The billionaire posting two photos, the first a mirror selfie of him wearing a suit, the second of him wearing a zip lining harness. So there we go. Its different than what its a sharp contrast to what elon musk typically tweets. 1. 3 million followers, mostly of rockets. Workrelated things. Cars, rockets. Loosening up a bit. Maybe thats amber herds influence on him. Perhaps. Nordstroms new jeans has social media buzzing. The retailer selling mudcovered jeans for 425. The jeans are described on the site as americana work wear that has seen some hard working action with a crackled caked on muddy coating that shows youre not afraid to get down and dirty. Would buy them . No im grimacing at the photo. Im like a clean freak. Put them in the washer, twice it seems they need to go through laundry. Then wear them. Its in fashion. Not my fashion. That is so expensive. Clearly, you are ready for it . Grubby. I hate this. They got to be clean. Not dirt cheap. That was good. Thank you. All right. Moving on, were setting you up for the big trading day ahead. Jonathan golab is with us next. Futures as we go to break. They are mixed at this hour coming off the back of two they were mixed, now slightly positive. Coming off the back of a second 200point day gain for the dow yesterday. Welcome back to Worldwide Exchange<\/a>. Good morning, a look at u. S. Futures. Last time we stood here, it was mixed. We had a slight improvement. Up about 0. 2 for the dow. The s p and nasdaq in positive territory. The nasdaq hit the 6,000 mark, and dow two 200point gains over the last few days. Lets look at the dollar board this morning. The broad dollar index hit the lowest several since november. Significantly pulling back, but it hasnt been broad dollar weakness across the board. Its been euro strength that is the story. Yesterday the euro hit 1. 095. Just below that. The euro enjoying a Strong Performance<\/a> back end of last week and this week. French Election Results<\/a> came in as expected. The dollar bouncing back a bit today. About 0. 10 against the yen and the pound. Approaching the top of the hour, that means the team is getting ready for squawk box. Becky quick has a look at whats coming up. I assume taxes, taxes, taxes on the agenda . Taxes, taxes, taxes, thats the big story today, but we cant forget earnings, too. Earnings have been driving the market gains weve seen over the last couple of days. Especially yesterday. The dow futures jumped significantly after we heard from five dow components, four of which beat on the bottom line. Today three more dow components reporting this morning before the opening bell. Procter gamble, boeing and utx. Procter gambles cfo, jon moeller will join us at 7 00. Mixed futures this morning, but weve seen strength from earnings, thats been fueling the market rally this week. Well also talk with scott mcnealy, former ceo of sun micro. Hell be with us from 7 00 to 9 00. He has a lot of Different Things<\/a> we can talk about. Technology is one area that weve seen so much activity and strength with earnings and with interest. Well talk to him about those issues. And Steven Mnuchin<\/a>, back to taxes, taxes, taxes, Steven Mnuchin<\/a> will talk at a live event in washington, d. C. Well take you there and listen to that. We know that he and gary cohen will be briefing people later about this new tax plan. Well get the details on that all of that is m cog coming up few minutes. Back to you guys. Great stuff, becky. Still to come not still to come. Straight away, coming right now to discuss markets, Jonathan Golub<\/a> from rbc capital markets. I thought we had a break between this interview, but we dont. We get him right now. Tan tastic. We heard becky outline some reasons on why we had that rally yesterday. Do you put it down to earnings . Thats a more sustaining reaction to a rally than the French Election<\/a> result. The pop we have had may be about French Election<\/a>s, but its all about earnings and the fact that the Economic Data<\/a> is coming in better than people realize. Its showing up in the top line, its pervasive, its showing up in cyclical groups. Investors have been taeen va investigating over a tax rate cut. Today, if we do get an announcement that the tax rate is being reduced from 35 to 15 , but no indication as to whether it will be revenue neutral, will that be seen as more of a negative than a positive for Financial Markets<\/a> . I think that we are obsessing much more about this tax thing, and the market is focusing on this earnings story. Were going into year nine of a recovery cycle. The market is doing great. Wages are going up. I dont see this obsession with leading this late cycle boost when the fed is trying to calm the markets or calm the economy down and slow things down by raising rates. Its not that i dont i want a more rational tax plan, its not that the market wont celebrate it, but i think you wont get a plan that has a huge drop in tax revenues, that will have a hard time getting through congress. If you look at whats happened to the markets since election day, those high tax stocks that got a jump out of the gate because everybody was so enthusiastic, they sold back off yet the market was fine. Im not saying it is not going to happen or it wouldnt be an inincremental positive. We saw caterpillar led oyest outperforming. Is that what youre focusing on . The cyclical areas . It is. It is broadbased. Beats are coming in almost 6 better than estimates. Thats a really, really big number. Even if you take out the easy comps on energy. Were looking at a solid double digit, could be close to 15 Earnings Growth<\/a> rate. Theres a few areas were projected to have weaker earnings. Industrials is one. Consumer discretionary is another. The fact that industrials are beating estimates by so much, i think is super important. You think earnings will keep this stock market rally alive. If we focus on technology, jonathan, nasdaq surpassing 6,000, really led by large cap tech. Can that rally continue . I think so. Theres two stories in technology. You have these fantastic new Tech Companies<\/a> that are delivering great earnings on margins that are unbelievable. And then with the economy picking up, you have old Tech Companies<\/a>, these are the semis and hardware, not as exciting but earnings are being revised higher. And in a resurgent economy, which is what we have right now, i think some of these older, boring Tech Companies<\/a> are the ones that will be delivering the biggest incremental beats even though stories boring is sexy sometimes. Boring sometimes is sexy. The sector youre most fearful of in earnings . Which will underperform the market . Let me answer the question differently. We get the retailers late in earnings season. Theres a lot of skepticism that these names are going to participate in this success were having elsewhere. Mcdonalds putting up good numbers is really important because it says the consumer is going out. It was clean, it was samestore sales, it was driving the success. If we can see that carry through into other consumer names, later in earnings season, i think this market goes very strongly into the next quarter. Finally, about 30 seconds left. The dollar softening back, lows not seen since november in part because of the euro rally. Is that encouraging for you for the rest of the year . I dont see the dollar as big an issue. I think it is about the euro. I think the other thing with the dollar, the u. S. Is dock really we doing really well so is the rest of the world. Everyone thought the dollar would rally because the u. S. Was doing well and nobody else doing well. Its a healthier story. Jonathan, thank you very much. Thats it for Worldwide Exchange<\/a>. Thanks for joining us. Squawk box comes next. If you want to stay on top of your health, one simple thing to do is take the pledge to go and get screened for the cancers that might affect you. So stand up to cancer and take the pledge at getscreenednow. Org it only takes a minute to take care of yourself, and nothing rhymes with org. Good morning. Market milestone. An earningsfueled rally pushing the nasdaq to close above 6,000 for the first time. A rundown of the big movers straight ahead. Plus washington watch. President trump will outline his big tax plan later today. From deductions to corporate rates. Well look at the proposals. And chipotle moving past that food safety crisis, but now facing another crisis, a data breach that could put customers credit card information at risk. Its wednesday, april 26, 2017, squawk box begins right now. Live from new york where business never sleeps, this is squawk box. Good morning, everybody. Welcome to squawk box on cnbc. We are live from the Nasdaq Market<\/a> site in times square. Im becky quick along with Andrew Ross Sorkin<\/a> and michelle carusocabrera. Joe is off today. Lets start with that market rally. The nasdaq closing above 6,000 for the first time ever. The index first hit 5,000 dluring tdlur i during the technology boom, then after the tech bubble burst, it didnt hit 5,000 again until 2015. Here we are two years later with the index at 6,000. We are up across the board once again after two strong days for the market. The s p 500 is indicated up by 1. 5 points. The dow is indicated up by 55 points after gaining more than 400 points over the last two sessions. 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