Squawk on the Street : CNBC : December 6, 2019 9:00am-11:00am EST : Free Borrow & Streaming : Internet Archive (2024)

markets have taken off on that stronger than anticipated jobs report. you see now, dow futures up 178 points the nasdaq up by 64. jason, great having you here, thank you for joining us today. >> great day to be here. >> it is much more coming on "squawk on the street." make sure you join us next week. right now we'll turn it over to those guys bye! ♪ good friday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer, david faber at the new york stock exchange. there is one story this morning, and it is jobs 266,000 jobs created in november crushing estimates and taking the unemployment rate back to a 5 50-year low of 3.5 we'll talk to larry kudlow after the open europe extended its gains this

morning. and yields, highs of the day with the ten year approaching 186 now. road map begins with that blockbuster jobs report. futures point to a strong rally at the open as employers add 266,000 jobs last month. >> top white house economic adviser larry kudlow will join us, first on cnbc. we'll talk about jobs, the markets and who knows what else. >> and uber safety concerns, ride sharing company disclosing thousands of assaults in the past couple of years stronger than expected november payroll number boosted by hiring and healthcare, restaurants and transportation the return of those gm workers from their strike also played a role in auto parts wages up 3.1 from a year ago looking for a little less than that, which had some wondering whether or not inflation is returning to the narrative. >> i think that you can actually look at a couple of the numbers different ways if you actually adjust the cost. you don't see that you just see 1%. i will say as i said in the tease i did with the people from "squawk," this is -- sometimes you get really good numbers and they're really good numbers and

you just -- if you try to find fault with them, it leaves you unable to when there is a bad number to find fault. >> i'm not saying wage growth say fault. >> we create a lot of jobs in the country and maybe the workers are making more money and maybe that's good is what i'm saying i just -- i find that we have had this kind of expansion and the workers haven't really participated in a wage basis here maybe they're making a little extra, which isn't bad. i think the fed wants to see a little inflation, just because we don't -- this is more of a number that shows maybe it is finally trickle -- trickling down a little bit. >> nonsupervisory three month annualized 4%. >> yeah. >> 4%. >> isn't that okay don't we want people to make a little more money when things are good i think they expect people -- the average number of hours worked didn't go up. but the distribution of where

they added jobs is amazing because did get some manufacturing, even against gm government, nothing. which is, you know, used to see the government up big. i don't find a lot of fault with this, i actually am in the camp, this is the lbj, jfk camp, you want workers -- expanding pie, expanding pie, that's good news. and i find it difficult, hate them or like them, it is a good number >> the conversation will eventually turn then to margins and wage pressures and the effect on companies. >> well, i also think that where we're supposed to have -- you put through major tariff, supposed to have a slowdown, supposed to have real bad inflation from what comes in as tax, the tariff, and we don't have either. i think the conversation may go to the other way, which is what happens if we win the trade war. do we even have enough workers for manufacturing? quite different from the adp

number the other day it shows an economy that is putting in jobs without a lot of inflation. 50 years ago we had this, we had a huge amount of inflation and recession, we had stagflation, we had numbers last, we have the opposite, so i think -- i was listening to "squawk," the card carrying democrat said it was a good number, but he blamed it -- cited it was a janet yellen economy. fellow on "squawk box," seemed like a nice fellow >> 205,000 premonth job growth pace, private sector making up 200,000 of them. largely -- you pointed out government, not -- and services sector obviously the key here as you pointed out, healthcare as well but overall good average weekly earnings 3.1% year over year 34.4, the number of hours worked, that's in line. >> this is one of those numbers where you have to start wondering about the things you

learned in economics class the philips curve and stuff. we're creating a lot of jobs and it is not producing what it is supposed to be producing when i study with galbraith and oto epstein, not that i was taking serious notes, busy buying stocks, but i did think the numbers weren't -- theoretically aren't supposed to be able to happen maybe that's the amazon factor maybe that's the factor of services not really having -- retail doing so, target of the world, walmarts of the world. >> meanwhile, you can't expect the fed is going to keep cutting, can you it is an economy moving like this >> i actually think that is the question why do they have to? the dollar has been weaker i know -- i think you can keep a cut in reserve, but this is a great number i know that the -- larry will come on and say, larry kudlow, say we need to cut rates. >> do you think he believes that >> maybe. >> what am i

>> there is potential in the labor force. right? and it could be better >> yeah, there is still a lot of people discouraged and that's a shame still that 63% so you can argue that they need to get it even stronger. if you want to win against china, that's what i'm using now, win, we do need the fed to have the back of the country because i think this is the number that says -- i think the president can walk away. you should walk away. >> walk away. >> from the talks. >> from the talks. >> enough. they allow a little more port to come in. >> that's the report this morning. >> got xi and cho. come on. they need the soy. they need the hogs i was with someone yesterday, third largest buyer of hogs, from my perspective, here is the way i feel about this, why even -- why don't they just come in and do something big? i think the president now has the ammo to say, listen, guys -- >> so the job numbers you think give them -- give the u.s. the leverage to just not worry about -- >> i know i'm a harder line than the president. harder line than navarro

harder line than navarro >> really? could you really be harder >> at this point, yes. >> my understanding is the chinese -- first of all, they keep coming down in terms of their offer on agriculture, you go back six months -- where they were numberswise and now that's the way the chinese negotiate. >> the question -- what i heard is the chinese are done, like this is it, and now the negotiations between lighthizer and trump. >> i like that i like that. i will tell you, i deal with a lot of retailers 50% from china on average. now it is about 35, 40 you keep these talks, so they don't conclude, and it might get down to 25 and what happens with the belt and road initiative did you see the stuff about -- about the world trade organization we're still supporting -- we're still supporting them, we're still -- we're lending -- we're lending money. world bank is lending money to them >> carl bass has been on a -- >> he's your buddy.

>> old dear friend of mine, on a crusade to say that china has been benefitting from lending from the world bank and makes absolutely no sense and they in some ways almost eat -- he argues controls the organization. >> you know what is happening, we are lending through the world bank. >> yes. >> we want to get it down to 1.3 billion. we're lending the chinese money. >> yes. >> that's why i say i'm harder line the administration seems to be incapable of getting it down to 1.3. they should be kicking in money to the world bank. second largest economy -- why aren't they kicking money into the world bank the reason why, they're giving money, belt and road initiative to each country. you go to -- >> you move beyond navarro to bannon now. >> navarro you go to milan, you go from the airport, all you do is see belt and road initiative signs in english. in english, that the chinese are giving money directly to italy they're using our money, from the world bank, to give the money to italy and venezuela. not that i want to conflate

those two. >> i'm not -- let's hear where larry kudlow is. i think he wants to do trade he's still in the james bond and i'm in the gold finger no, mr. bond, i want you to die. >> meantime, other corporate news this morning, uber says it received more than 3,000 reports of sexual assault during 1.3 billion rides in the u.s. last year it is first biennial safety report, they say that was down 16% from a year earlier and details efforts for further safety improvements. average of 3 million rides a day. 3,000 sexual assaults, 107 fatalities, 19 fatal physical assaults it is hard to know how this compares to just population at large. >> i've been trying to find out. dealing with them. and i can't seem to get an answer i know it is pretty early out there. i would say there is not only no silver lining in this number, i

use uber and my wife uses uber, my kids do, i found this frightening. >> we forget uber is a global company. >> right, but i don't think -- to me, until proven otherwise, it did make me feel like that they do not necessarily screen you know, i found these -- did you not find these numbers surprising >> really, not one way or the other, context is hard to understand >> that's what i asked for give us context versus regular cab drivers or something i found it -- i found it disconcerting. >> they're out pretty forcefully in the press, full page ads talking about the report, the survey, and i do say this is just the start of our larger efforts. we realize nothing can ever be 100% safe, but that doesn't mean it shouldn't be our ambition. >> and i thought that was -- the good thing is they admitted and they'll put things in action the bad thing was, wow, that was -- i regarded statistic

overall without the context as being that they do not have the kind of screening that you would like to think. for someone you're driving around with. >> listen, let's go back to london, where 14,000 drivers were not who at least they said they were, and they have been -- you can't -- maybe they win on appeal there in some fashion. >> they tell me they are. >> that's a profitable market for them they're making money, certainly one of the more important metro areas that uber operates in. and the cost -- >> cost is so much cheaper than the black cars, really nice. i use uber when i'm in london. actually i never -- one, i save a lot of money that's a real diversion. the numbers, tony west was speaking with nbc news >> tony west, tell people who tony west is. >> he was in the most respected member of the justice department he went against the banks. >> now he is -- >> now he's their general counsel. and you can't -- this guy is

on -- he'll put out every detail i think that's fantastic but he did not give the context of that detail maybe this is the average rate of cab drivers and they just didn't put it in the context that's what we need. i would feel better. maybe they have it >> we'll talk more about uber, of course, price still below those opening trades when the ipo occurred a few months ago. we'll talk about the jobs number, trade, of course, and more with chief white house economic adviser larry kudlow later this morning, just after the opening bell cramer's mad dash, look at futures here, the dow is trying to erase the deficit for the week as it stands right now, we would be looking at the worst week since october 4th back in a moment ♪ there are things we would change about work. and there are things we wouldn't. ♪

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♪ getting some activity in bonds this morning on that strong jobs number to rick santelli at the cme. good morning, rick. >> yes, a lot of activity. pretty much everywhere and as you look at an intraday of the 2-year note yield, that could be 5, 10s, 30s, bunds they all look the same. a big spike looks like the sears tower there, the data was all good, wage data was good revisions on wage data were

positive and indeed 164 right now, we're now up 5 on the day, up 3 on the week and if you look at a november 1st start to ten-year, should we close here, the best close since the 13th of november. and at 186, we're up 5 on the day, up 8 on the week. and let's look at one week of bund yields, bund yields haven't taken out the early week high yields yet but obviously they're closing higher on the week but the point of the chart here is with bunds. we continue to see that not only do they follow us, they are gaining a little bit more horsepower, their volatility is getting tighter, and many believe we're going to get ever closer to zero bound, so we want to pay very close attention. the dollar index, wow, it is up about a quarter of a cent. the problem is you look at one week chart, even though we're up on the day, we're down over a half a cent on the week. and, of course, we're going to continue to monitor how we

respond if we get closer than 190 mark right here around 185, 186 in 10s. many day traders will be selling against the pop on the number and, of course, paying close attention to the new york opening of the stock market. carl, jim, david, back to you. >> okay, thank you, rick santelli now time for a mad dash as we get you ready for that market open, about 13 minutes from now. let's turn to a stock, though, you have spent a lot of time here talking about through the years, it has been a while since it has been a feature on the mad dash. >> you know why. there isn't a definitive makeup slowdown and mary diller. >> that's where it first happened. >> lack of contouring, contouring became something people weren't doing. >> how did you know that >> i remember that i read the conference call that day. >> people are using less makeup, but still -- people putting makeup on. a lot of this, david, is ins instagram revolution slowing

down, on likes, we can't tell, they manage to put up 3.2% comp store gain, they're doing that on skin care, back end, loyalty. a lot of people felt it would continue and short position build up and they have been able to stabilize despite what is known as a classic cyclical makeup slowdown. so mary diller, most impressive. good conference call you have a slowdown and they can do 3.2, imagine what happens when we get new refreshed makeup lines. and the skin care is making up -- it is not as big as makeup, but that's something, by the way, estee lauder has been doing skin care and makeup, estee lauder is the preferred vendor to ulta. >> any idea how long these cycles -- this down cycle or -- >> that's an interesting question she addresses when we have the last one, they're not -- they don't go long. but in between they're doing so many things technologically and back end of the store, they're doing -- working with how to

make yourself look better, which is something that a lot of us could use, i've got to tell you, the last down cycle, most recent growth cycle started in 2014, that was a five-year cycle. >> wow. >> so five year, lean years, i don't know >> good cycle for ulta until there. >> you thought i would do tractor supply, didn't you >> used to be the key to the market. >> i know. >> we have a lot more. speaking of the market, as well, president trump's chief economic adviser larry kudlow, former colleague, will be joining us to talk jobs and a lot more more "squawk on the street" right after this ♪ for every family going home for the holidays, there are countless people working to help them get there.

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dow needs 373 points to erase the deficit for the week it is going to get there, to a large degree futures look to be up 200. opening bell in eight minutes, followed by our interview with larry kudlow on the jobs number. don't go away.

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you're watching "squawk on the street" live from the financial capital of the world opening bell in five minutes on this busy jobs friday. if you missed the number, 266,000, well above the estimate of 187, unemployment rate down 3.5. a barn burner of a number. incremental headlines on china trade, waving some pork and soy tariffs, jim. >> still too minor stuff they actually need, not saying that we want them to do some boondoggle buy, but they have big pork shortage because

of asian swine flu some good numbers on that, they have been keeping track of it. not what the -- not what the president wants. the president wants a serious buy. and that's not it. that's just incremental. that's not going to get them -- going to get them anywhere if they want to have serious talks. >> right some decent research, jonas at morgan stanley on tesla, helping the bull case to 500. >> we got to talk about this guy. what is -- what is the bear case 10 >> the base stays 250. he takes the bull case to 500 on potential success of the cybertruck and what he's already written about, which is margins in china. >> he says that things aren't long-term good long-term we're all going to be dead i thought that was a shockingly fatuous piece of research. he raises his top without really doing anything to say it is good tesla bull case from 440 to 500, but not bullish long-term.

jonas, come on, like the jonas brothers have better numbers than this guy. >> he talking about the cybertruck by year end 2024 selling 100,000 units at $50,000 a piece, 20% ebitda margins, that's probably more than people are thinking right now. >> much more that's why i say if i read it, i read it and said, he's the bullish, most bullish guy. after all this stuff, he says, look, i'm not a bull you can't have it both ways. you can't raise your price target and stay negative when you do that, you tend to be trying to have a thesis, your thesis isn't -- this guy is not letting the facts get in the way of his negative story. he has it wrong. that's bullish >> okay. >> i get -- you're not respecting his work product here >> no. i think he's -- he apparently is a super nice guy some people say he's a nice guy, i say he's a super nice guy.

some people say he's a good analyst, i say he's a great analyst. but he's a little off when you raise your price target. >> tesla stock price is well off its lows, there was a point at this year as you well know where it traded well below, even 200 bucks. >> isn't that -- i thought when they threw the rock through, that was the bottom line for me. they threw the rock through the window, if thing sells, if they get a single sale, it is like -- now i'm, like, my kids are saying, dad, what are you thinking about the pickup? i'm an ex-guy. >> anybody i speak who owns a tesla, loves it. >> yes >> really? they love their cars. >> service, right, there is some -- something goes wrong, it takes a while to get it fixed, no dealer network. but overall, yeah -- >> overall, they have very high customer satisfaction. based on an absolutely flawed me saying, do you like your tesla and everybody is like, i love it. >> how about the big screen? i don't want to get too

granular they're fun. most cars are not fun. the other day there was an analyst that said all the other pickups may be crummy. i have an f series i bought. for ford >> phil lebeau read that quote to mary barra. she said she is all about the customer whatever the customer wants. >> she demonstrated she is, you know, but i really feel that tesla, jonas piece is just -- he's got to come out and say, look, i'm incrementally more positive you cannot use a huge price target and then say, hey, listen, i don't like -- you can't -- >> how morgan stanley does things, right, in general, they have -- there is a large disparity between their bull and bear cases. >> industry view cautious, i don't know i found it -- i did, i used the word fatuous i have to -- bear case, $10, come on. bear case, $10 from tesla. elon musk, listen to me, i apologize for $10 bear case because i'm from this industry

there. >> let's get the opening bell. and the s&p 500 on this friday morning. at the big board, energy technologies, and oil field products company over at the nasdaq, cronos. >> yeah, that did not have a two for one split. that was not a two for one split. >> jim, the other -- >> the big earnings story is probably ulta. 225 beats by 12. >> i got to tell you, you look at a slowdown, look at zumies, the numbers were extraordinary you'll see that stock up gigantically why? skating. skateboarding. >> really? >> yeah. that's the hottest -- 700 stores hundreds of stores, the numbers were fantastic big lots numbers weren't as bad as people thought. you got a lot of companies that

were in retail that people thought would have bad numbers and they didn't. and i think that's important today a good retail day. >> price target increases on ulta at citi jpm, piper and others. >> we also had two pieces about how lululemon will have a good number that's part of athleisure. we saw sara eisen the other night. i miss her athleisure comments she's been on lululemon the whole way. >> that's one reason that tapestry gets cut over at evercore back to inline, based on, again, just shifting tastes, athletic -- athleisure, coach is a victim. >> taste did shift radically one thing on the zumiez call, it is now so fickle, women's was strong, now it is weak it is fickle tapestry has not been able to adjust fast enough i don't know i've been watching this realreal i know we did a really -- there

is an investigation by cnbc into it but, you know, coach retro bags are doing better than coach. >> interesting >> yeah. >> guys, monday, as you know, trial is going to start, state ags led by the states of california and new york, versus sprint and t-mobile, challenging the deal itself, saying it would be anti-competitive for consumers, judge morero on monday both sides getting ready as you might imagine. opening arguments are scheduled at least at that point see what the stocks are doing. you know, a lot of imapplicatioimapplicatio implications here. for dish, which stands to gain a great deal on the potential divestitures that will come its way to help try and make it a wireless nationwide wireless player eventually if and when

that deal closes did want to also share one other thing, involving the deal and the talks, by the way, this is one of those things that has not been reported, but is widely known in the investment community and reflected in the stock prices just to go back for a second, the ratio here is .10256, all right. of t-mobile. that's why we're getting to this that's 541 541 is what that amounts to for sprint or i should say 789 for sprint it is 5.42 now so the percentage -- you see it on the bottom of the screen. t-mobile is thinking about, talking about and expected to want to cut the price is not a mystery to the market. there is, a, a chance that the states win in court and what that would do. they don't have -- remember, they don't even have a merger agreement is -- it is expired in

the sense of anybody can walk away at any time they haven't extended it and so that is not a surprise, but i did want to share it, because it is out there, that if in fact you do get to close here, t-mobile and its parent particularly deutsch tell, given the deterioration in sprint's business since they first announced the deal and for a variety of reasons has the intention of trying to cut the price. what sprint will stand for or whether they're in a position to say no, hard to imagine. they need this deal as well. first order of business is the trial. that starts monday could take two, three weeks. we're going to watch it closely. if in fact they do, if they should settle unexpectedly on the courthouse steps or even in the middle of it, you do get to it, you do -- we do expect, and, again this is widely known in the investment community, but hasn't been reported, t-mobile wants to cut the price. >> no, i -- look, i've been following -- the ratio. >> not going to affect the stock at all it is trading at 40 plus percent

discount to the 789 it is worth under the old deal. >> i'm looking at it from the other way, how important it is from a point of view of the 5g really need another competitor we're second rate in 5g in this country, everyone knows that >> well -- >> so the setting the stage for an important trial, charlie ergen takes the stand at some point, executives from t-mobile. >> are you going to go >> i'll try to go, yeah. >> sketch? >> i will sketch, sure i'm the worst artist ever. i'll just draw a big circle with a couple of dots >> you did just talk about an untold story this deal, we're waiting for -- >> waiting, we're going to keep waiting. >> okay. >> for a long time. >> that's great. >> when it comes to waiting for a deal, don't wait for alexion to do a deal interesting story here this morning, they out elliott essentially, elliott was in there, we didn't know, and alexion this morning issues a long press release in which they

basically say we had a constructive dialogue with all of our shareholders, and we recently engaged in good faith, with elliott advisers, and including their recommendation that we immediately launch a pro active sale process, and they say the board unanimously decided to conduct a sale process and would not be in the best interest of shareholders and the patients we serve at this time, however in the interest of transpaurn srency we it is important to hear about the decision directly from us. they go on to say they were not approached by anybody, that they have the benefit of the board's exceptional industry background, m&a leadership and in deciding it would be an inadvisable to follow elliott's recommendation. they considered among other factors highly unusual if not unprecedented for a biopharmaceutical company to proactively launch a sales process and. and so i thought that was interesting, jim >> why is the stock up

>> i guess nobody even -- a possibility that elliott will keep pushing do have a previous board member who agreed, by the way, with the rest of the world. >> that is -- everyone thought this is one that is in takeover talks every single second. >> right >> everyone has been saying this is the next one. it is not. that's why -- >> they also say to eliminate confusion and inaccurate information in the market place, today, alexion has not received any indications of interest, nor have we rejected any such inbound proposals, so that's alexion, the story there this morning. interesting when they choose to get ahead of the activists, so to speak, and say here it is all is. >> this is a highly unusual -- i thought for sure they had been approached, interesting drugs, oh, well, there you go, an earnings story now. >> exactly it is an earnings story. >> guys, best dow gain since

november 1 s&p is going green for the week. or did for a moment there, we're hovering right around that level at around 3141 financials working, jpm 135. all time high. >> look, you got rates up. and that is driving that but it is funny, the pharmaceutical stocks are up too. they're not the ones that -- look at johnson & johnson, just a pbit of a dog, that stock is p a dollar you got this -- it is not even goldilocks, it is weirdy locks you have the drug stocks up and the bank stocks. >> dr horton, the biggest loser now. >> that was a brutal -- that -- there they said lennar is good i thought that dr horton said it like its time has passed don't agree with that. >> not a reflection that rates are going to go higher >> no, i think it is a shuffling of the guard i would have stuck positive with every one of those they want to distinguish how great lennar is great. lennar is great.

that's an important call. >> financials and materials too. you look at free port, some other names, jim. >> a lot of people feel that's china being back online. this is tech resources and the najarian brothers. they saw some unusual option activity in tech, tck the other day. >> did they? >> yeah. >> okay. >> unusual >> unusual >> tech is china we know that you buy tech, that's a proxy for chinese growth and it's got a lot of buyers >> 3m helping lead the dow, all 30 dow components are higher >> this is -- can we just say that it is -- again, i'll stress how unusual it is, this just seems look a big buy program which i would rather see real buyers it is buying everything in the s&p, including companies that wouldn't necessarily be the ones you wouldn't go for healthcare on this. >> we don't know what the machines are doing we haven't talked about them in a while. >> it is the machines. 3m is up gigantically.

no indication that 3m is doing better there it goes. >> go walk up to soho or wherever sigma has their headquarters and ask them. >> is that co-locational >> they're enormous. 70 billion >> that's the closest you can get. they can buy faster than -- >> they're not doing that kind of stuff they got all the ph.d.s, running all the data, all the programs and all that stuff. >> you look at the board, even color blind people know it's up. >> guys, this story, i mentioned the other day, it is small company, i know, but i kind of enjoy this, in structure, they got bumped by tommo bravo, take under and largest shareholder rifflet capital came out and said, we're against this you didn't do the work they come out in structure and said, really we spent 11 months, we had 19 ndas, 19, we have been working on this, since mid-june, we entered into nondisclosure

agreements with parties that expressed interest in a possible acquisition. we didn't do our work? we tried the best we could this was it. >> summa cum laude, guys, in nothing. >> still trading above -- >> what is that, david >> i know. >> that kind of thing is so out of sync with what's going on take under. >> there is a lot of activity right now in broadly speaking healthcare, biotech and that area. >> efron is on a lot of places. >> center view is busy actually not him, it is another great banker there >> hartman union pacific, my bellwether stock for the moment, once again, higher. remarkable remember the cargo was down 10%. it could only go up? i don't know >> that's what we were saying about real traffic earlier in

theie the year and then it got worse. >> i should focus on the stocks, not the business. >> as we're talking, opec and russia agreeing to cut half a million barrels a day. for whatever that means. hope to hear from brian later. >> brian has been doing unbelievable work there. i will say that half million barrels, u.s. can make that up, which is why the five-year curve remains below where things are now. five-year curve, 53, not, you know, things are not great in the oil -- i thought that was the biggest gainer, that was the job creator for a long time. that's no longer the big job creator. >> by the way, aramco will start trading on wednesday next week >> yes. >> next week will be nuts. fed meeting, uk election, tariff deadline, aramco, and house judiciary, all in the next five sessions. >> i avowed not to sleep next week dr. oz says it is really bad for you. >> i continue to believe that, you defy that every day. >> i was out there with the

chipotle guys last night at barsen miguel, no slowdown that company is doing well oh, my that stock, i don't even know if you can contain that stock they're double digit after all the things that happened, double digit growth >> good on that name. >> thank you >> you're welcome. >> you were early. you stuck with it. >> you were early. >> sort of weathered some ups and downs. >> 18 months, that's how long people remember. is larry on? >> we have been having a couple of camera issues, i think we do have him on the phone. on the jobs report this morning. if you missed it, labor did say november payrolls up by 266,000. joining us on the phone with his first reaction from the white house, national economic counsel director larry kudlow. good to see you or talk to you. >> and to you, carl. thank you very much. >> so help our viewers understand the strength of the number, knowing that we had gm and census clouding the picture, at least going into the print.

>> look, you know, those numbers up one month, down another, cancel each other out. it is a push look, the basic theme here, america is working america is working and, by the way, the middle class workers are working. we'll get to their jobs, not just their jobs, but their wages. but you scoring 266,000 and, carl, don't forget, abstracting from all these things regarding the census bureau and the gm strike, you have plus 41,000, plus 41,000 on the revisions so actually you got another 300,000 jobs month if you will, 301,000 or whatever it is. these are very big numbers and the interesting thing is on a trend line, you know, you chart your three-month movement, it looked like the economy was softening on the jobs front, now the jobs front is coming back.

that is showing more strength and i'm thinking you're going to see a capex business investment follow through, of course, we know the housing industry is very strong. and as the fed finally got straightened out and caught interest rates bottom line, america is working, these are very strong numbers. these are happy numbers, sunday, friday numbers, sunny and friday numbers, happy working americans. >> larry in all the years this is jim, i worked with you, a great pleasure, you're a great economic historian too people don't know that can you contrast this versus 50 years ago? isn't this number a very much better number than we were at this -- when we were at these levels 50 years ago? >> 50 years ago, you want to put me back into where, the 70s or -- 80s? >> stagflation, larry.

we were had higher interest rates, went into recession, terrible inflation do we have any of those things right now? >> no. i mean, it is really interesting to me, you're 3.5% unemployment, dropped down to 6, inflation, by the fed's numbers, what, 1.4, 1.5% so let's get this right. 3.5% unemployment is how much? 50 year lows, some odd and at the same time, the inflation rate is about 1.5. 1.24%. you know what is really cool here we are having growth and jobs and wages, maybe we'll get to the wages in a moment, we are having all those solid growth prosperity things without any inflation, we have a steady reliable, dependable dollar, which i think helps a lot. and so all these philips curves

are broken almost doesn't matter. if the unemployment rate were 10, the inflation rate would be 1.5. the good news is the unemployment rate is 3.5 and the inflation rate is 1.5 and i think over a couple blocks from where i am, in that big building with all those models and hundreds of thousands of ph.d.s, i think they're finally figuring out that more people working successfully is a good thing, not a bad thing i don't want to -- >> i don't want to be brash, jimmy, i don't want to go out on a limb, but you heard this before more americans working, it is a good thing, not a bad thing. >> larry, why does nobody -- why do some people in the country know that the stock market is doing so great

wfr wfr weren't you aston uished how fe people know how good we are? >> you and i always take the pro american side, has a lot to do with who we are and who our fathers were working in world war ii for some reason, we don't have those attitudes, but i don't want to get, you know, at the personal level, jimmy. it is what it is it is a very, very good story. head winds, you know, we had the federal reserve, way, way, way too tight, and in 2018 but i think now that's going away they took their foot off the brake. i notice the balance sheet of the fed is rising again, i think the monetary base in m-2 is up 14%. that's good. we are not going to get any help from europe. that's regrettable on the other hand, we are cooking up very close to two powerful trade deals i say powerful, not only are they well crafted and will open

the door for american exports because we're the most competitive in the world, but it will add a lot to gdp. you know what, i was noodling yesterday, china, phase one, probably could be half a point or more, gdp next year usmca could be half a point or more next year so that's really something so i'm playing it on the optimistic side. >> larry, it is david. taking you up on that discussion of trade, you joined us, november 12th, joined cnbc and saying then a deal with china is close. is it still close and can we expect the tariffs to hit on the 15th of december as still planned? >> well, let me say this, the deal is still close. it is probably even a wee bit closer than when i first made that statement in november, but i will say, with the statement, as you know the president this

past week in london and washington posted saying the deal is moving along very well we're having good discussions with china you probably know the deputy level met again, i don't left met again, i don't know yesterday or the day before yesterday, potus again said we're moving along in the right direction. he'll say, of course, it's got to be a good deal. there's a few button that have to be buttoned, and they're working on that. as you might get, i can't speak specifically on the remaining issues, but the reality is constructive talks, almost daily talks, we are in fact close, which is back to your question on december 15th, david, there's no arbitrary deadline here, okay there's no arbitrary deadlines, but the fact remains that september 15th is a very important date, with respect to

a no-go or a go on tariffs these are presidential decisions, david, i can't make them over. i'm not even going to forecast them here. but december 15th is an important date you know, larry, these takes often go ahead marked by a phrase final lapse by mnuchin, short strokes by you on the 15th what phrase would you use to describe talks right now >> um, intense [ laughter ] >> okay. i like that. >> i say intense, because this is a very important matter a we've had discussed, the

president has changed the narrative on china unfair trading practices that have been used by china for many years, that's why i use the word intense, this is a very important matter the president said i think when he was in london that correctly pointed out the u.s. economy is rising and in good shapei woul add the word intense jimmy cramer, you above all

people know, the most encyclopedic stock market guy there is, they are the driving force that makes the american economy the beth in the world. so, jim, we can't he afford -- we must not permit any country, china or whoever, to willy nill steal our breakthroughs in technology, advanced microprocessing. we can't let that happen so the -- which includes by the by finance services sector

i'm say the growth implications here could be terrific the diplomatic implications could be good, though we worry about national security, but in straight economic terms, our family jewels are the technological inventions and innovations that, you know are god-griffin rights to practice >> i think we have to be willing to walk away if they keep stealing our i.p. >> i would telling you this. the president has said many times if the deal is no good, if the assurances are no good, if the enforcement protection are no good.

as a clever and tough-minded negotiations, he's using both. we have two of the best working the front lines, our whole trade team is involved your point is well taken, and the president has said that, if we cannot get the infersments, the assurances, we will not go forward. i don't want that to sound bearish, that's not my intent. i'm merely responsibility -- you know know what you need to come and sit with president trump 30, 40 minutes to talk about this let me work on that and put that

together he loved your spirit on the china story. just make sure we get him back, larry. if i get my he you may never -- >> we know it. kudlow and cramer. >> we killed it. thank you, larry, that's very kind >> i wish my dad were alive. he would love that he loved larry so much >> this is one of those moments where we are a this is not an enterprise number.

this is a company that they have the solution of finding cancer early. i'm just finding they companies so much. >> jim, we'll see you tonight. "mad money" at 6:00 p.m. rehaa nt gain for the dow in mo tn moh. back in a moment each day our planet awakens with signs of opportunity. but with opportunity comes risk. and to manage this risk, the world turns to cme group. we help farmers lock in future prices, banks manage interest rate changes and airlines hedge fuel costs. all so they can manage their risks and move forward. it's simply a matter of following the signs. they all lead here.

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from the day you're born we never stop taking care of you. welcome back to "squawk on the street." rick santelli with the last breaking news of the week after that big jobs report inventories are up 0.1, but trade sales down 0.7 last like so that is not a good deal and when it come to the university of michigan, this december preliminary we're expecting around 97, much

stronger, a big hit to the up side 99.2 that follows 96.8 remember, this is a mid read this will get change 99.2 is the best level since may of this year, and second-best level of the year. now let's go through some of the internal, shall we on the one-year inflation expectations, it was downgraded by a tenth from 2.5 to 2.4 on the five to ten outlook this is being. it was downgraded. so despite wage up side and revisions to the up side in today's jobs report and just a tinge of conversation about the potentially for inflation, these numbers at least from the sentiment side of the survey seems to diminish any pressures this back to you. >> good friday morning, everybody. welcome to "squawk on the

street." the market obviously enjoying the jobs number, and. >> that strength continues the r50d map today starts with the blowout jobs report. stocks rallies on the strong numbers. >> former vice president joe biden is speaking out. we'll get his thoughts and opec's oil cuts. we'll talking to vienna for the second day of meetings we're going to dig into the jobs report. for that we turn to steve liesman. hey, steve. >> yeah, carl, still a little breathless it buries the economic negativity, and to outstring over the most bush pantheon just said astonishing

1266 versus an average of 187, revisions upward for september/october, 41,000, that's 4-1 thousand. average wages still pretty muted. let's take a step back from the big numbers, the monthly, and look at the three-month average, 205,000, bouncing back from the lows of the spring, stronger than the levels of last years, december and earlier this year, january that were north of 225,000. where were the jocks you might said education/health services surging. manufacturing some of that will be the gm workers coming back to work government you have 12,000 markets have the best of both worlds right now, it would appear strong job growth, maybe hints at better economic growth along with low inflation, that keeps

the fed at any clans of a rate hike on the sidelines, at least for the time being, carl. >> steve, thanks for that. good setup for us this morning grant thornton's chief economist is joining us, diane swonk, and david -- good morning to both. best of both worlds. is that true >> really other the better part of the year is remaining contained. the other thing is what you are seeing some wage pressure for production and non-supervisory, that's up, for the aggregate figure that says you're seeing pockets of wage growth, but it seems unlikely that passes through into consumer prices product activity is still soft and i think businesses are hesitant on what happens if they increase prices. >> diane, thoughts on whether or not the inflation dynamic is

back or not? >> i don't think inflation dynamic is back yet especially if we get a phase one deal that's the bad way to get inflation. but what we continue to see is the competition is very hard, retail margins are razor thin. of course even during the holiday season, with the compressed holiday season between thanksgiving and christmas only be 26 days, retailers are worried about unloading the information torrie, which means even more discounts. i think it will be hard to get the upward pleasure that the fed wants, but this record is strong enough it lets the fed firmly on the sidelines as it enters an election year, which is exactly where we would like it to be >> david, we saw treasury yield spike on the report. do you see the likelihood of a 2%, back to 2% on the ten-year >> it's interesting you ask that

question i think everybody is looking for 2%, and i think when everyone is looking for something, it fails to materialize not only did we have a good jobs report today, it's coming through in consumer sentiment. you saw weakness on the retail side with things essential flat, but drinking establishment, more the hospitality and leisure, you saw job gains in the report. so i think people are banking on the consumer continuing to field good, and if that manifests itself into the independence of this year, maybe that pushes rates up a bit. >> so does this deserve a higher multiple for stocks? >> when i look at the s&p today trading at about 17 1/2 times, i think that that is a bit rich. i think that the market is a tad ahead of itself. i'm not sure it will be as smooth sailing, so we're still cautious here focusing on the yield trades, so things like

financials, technology, energy even where you're getting not only a dividend yield, but a buyback yield. >> you don't see those as expensive? >> i think financials are looking relatively cheap tech does look a bit pricey, but that's more of a structural story that i think investors need to be participating in, rather isolating those individual opportunities within the space. >> they're getting more expensive. i mean, your bank, i assumed some stock, but the multiple's been moving up fairly substantially. >> it has, and i think that has to do with the move had in rates. at the end of the summer, you had investors pricing in, and as that has ebbed and more clarity on the direction of travel, the cyclical names have really come back quite nicely. >> larry kudlow a few moments ago suggested we may see a resumption of cap ex how likely is it

>> i think the important issue is something we heard earlier, that it's still stripping out the gm comeback, so we have this sector doing strong, unless they roll back tariffs in the manufacturing sector, you have the veil of uncertainty. if we get a detente, sort of a temporary truce, and maybe some rollback, you'd get a bit of a dead cat bounce in short-term spending in an election year, i think it will still by cloudy on the trade front in terms of where trade policy is actually going. >> historically there's been a tight relationship with profits and capital too spending the outlook is not terrible, but low to mid single digits, so given softer earnings in 2020, i think that keeps to say longer

her term projects on the sidelines. >> what else before they start deploying? >> i think they need clarity on trade, on the direction of he capital, and the consensus is still up near 10%. and so as that rerates he, standing on the sideline with respect to significant spending, i think that's probably the right approach. >> diane, larry said half a point to gdp on a phase one, half a point off umca. do you have a problem with that? >> a lot. >> the estimates coming out of the administration have been very high and wrong. usmca is baked into the cake it's been uncertain recently, but the biggest thing would be a failure that would hurt growth it's not going to add much to growth on phase one you're not going to get a big bounce >> you know, diane real quickly to come back to that, it takes

me back total tax cuts, which of course were supposed to bring about a huge renaissance, and we've already annualized that. what did we actually see there >> we got very little. part of that is because the trade war ramped up, but also they just didn't deliver on that front. of the of the incentives were longer term, so they pulled things forward they should have left out there in the longer term other issues got in the way i think we saw it fall really short, and fourth quarter growth was revised down, so we really got almost nothing out of the tax cuts in 2018. >> david, thank you. a lot to cover diane swonk and david leb:vitz, thank you.

we'll get more on the race to the white house when "squawk on the street" returns. >> one of the things that worries me most about that, john is not just the -- the middle classes getting killed

former vice president joe biden sitting down with our own john harwood john is live from iowa, with some of the highlights

>> reporter: even with today's strong jobs number, there's still a lot of concern about the effect of that china trade ward that trump is conducting when i asked joe biden about that, he said some of those tariffs will come off if elected, but some won't. >> those tariffs come off in terms of farmers, but other tariffs may go on in terms of the violation of the stealing of intellectual property, the violating wto rules, the world trade organization. >> for all the people saying tariffs are creating uncertainty, you think some are justified? >> for example steel dumped is justified. it is in fact designed to drive down our steel market and steel production, but the idea of us making the farmer pay for what they work like hell to do, provide and have a market, in

china makes no sense it's not about the deficit what it's about is what they're doing unfairly to change world trade rules. >> reporter: a big concern of wall street is about the wealth taxes that others are providing. joe biden is not for a wealth tax, and explained why, but he is for a financial transaction tax. >> there's certain things you have to right the market a bit here the market is that if you have all the tax breaks, all of the benefits flowing through the top, wen tenth of 1%, there's never been as great a concentration of wealth, including going back to the great depression, ever one of the things that worries me about is not just the economic impact on people.

the middle classes getting killed. >> treasury secretary mnuchin today said that he opposed a financial transaction tax, which some in the race has -- >> no, i still think we should do that. that doesn't -- i think we should have a he financial transaction tax. >> reporter: he also renounced miss past support for a balanced-budget proposal heside conditionshave changed. he said the next president is likely to inherit a recession. >> has any candidate ever won by proposing a trillion or more in tax increases. is this something you think in 2020 will poll well, will work with voters? >> reporter: yes, tax increasing on wealthy americans are very

popular. barack obama was elected in 2008 proposing new taxes on wealthy, bill clinton was elected in 2002 based on that. taxes that bernie sanders and elizabeth warren are talking about, i'm not sure about that, but if you ask the average american on whether taxes should go up on millionaires, the numbers are very strong on that. >> the -- you know sanders has a plan that some would say is fairly draconian any details from biden >> reporter: no. the reason i asked him the question off of secretary mnuchin's statement yesterday was that in the tax plan that he has put out over time, and he summarized it in a white paper

earlier this week, he did not include the financial transaction tax. there had been discussion he would include one. i asked if he rejected the idea, and he head snow, it would come later, but he's not proposed one yes. >> john harwood in iowa, thank you. sticking with the 2020 race, new presidential hopeful michael bloomberg taking a swipe at his fellow candidates on cbs this morning. >> part of the conversation is here we go, another old white gentleman. isn't it time for change >> may be. if you wanted to enter and run for president, you could have done that, but don't complain to me you're not in the race. it was up to you i thought there was a lot the diversity in the group of democratic aspirants, entry is

not a barrier. >> joining us is jim stewart, also author of "deep state." and somebody i love to talk with about taxes, i mean, this biden -- i'm not sure -- a lot of people do believe that sanders' proposal, for example, would be ruinous >> well, you know, it's dizzying suddenly all these new tax ideas are floating around. how about the old taxes? why don't we do something about that we have a horribly inefficient, ineffective, in many cases unfair tax code 9 financial transaction tax, you're going to have less of it, so i think we

should acknowledge right away, you start slapping taxes on, people will not enter into the transaction as much, which means the transactions will not be as liquid and will not reflect conditions as they do now. the thing that bothers me about the wealth tax, we can all agree there are these high concentrations of wealth in a few people, and we think that's a problem, but why is that one of the reasons we have these billionaires is they never paid any tax. the president of the united states we can use as an example. they make a lot of money and uses loopholes in the tax code to -- bloomberg founded a company, i've never heard anyone accuse him of acting in any

unfairway of accumulating the wealth instead of addressing the source of the problem, we're saying okay we're going to take a sledgehammer, and start taking that wealth away from you. by the way, fairly or unfairly they already paid taxes on, i think it raises a host of simple problems of fairness, efficiency, practicality, when what we really need to do is address the major inequities and inefficiencies >> taxes are used to modify behavior, but also to raise revenue. >> yeah. >> your point is they're going to where the point is and not thinking about the behavior. >> yes people say they like it, assume they are not going to be paying it taxes are always popular when someone else has to pay it so to get really popular, you have to narrow it to such a small group, that it doesn't start raising that much money.

if you actually would go into the current tax code and address major loopholes. i think the idea of raising capital gains taxes, or even making them at parity that raises a lot of revenue. >> estate tax, too >> exactly if you start really significantly applying that equitiably, fairly across the board, you're going to raise money on that. >> biden telling john harwood he's anticipating inheriting a recession, so how do you square that with this whole idea of raising taxes. he also said he wasn't interested in balancing the budget it seems like there's a lot of levers at play here. >> that's absolutely right there are this is contradictory impulses if indeed we have a recession on the horizon, and i don't see it,

but someday it is going to come. you don't want to be raising taxes. certainly you don't want to be raisings them in the trillions that we're talking about and then, you know, another problem with that whole wealth tax idea where you think it's not going to apply to me the history of taxes is it start applying to the ultra-, ultra-wealthy, and then it's not raising enough money, and so they should it comes down. >> she raised the billion players, and now down to 50 million, 2% above 50, right? >> so pretty seer then we're at 10, 5 -- you can call a lot of people rich, but in high real estate cost of living cities who live in houses or apartment that they didn't pay that much money for, but they're sitting on an asset that could be their primary asset. what are they supposed to do

sell their house to pay the wealth tax there will have to be carve-outs -- i shudder to think about how the this would like like on paper. larry summers has been on a bit of a sermon collecting taxes that are owed, but not paid. why is that not getting as much attention? >> i guess you can't chant about that at a rally or something like that. the whole thing about trying to make the system we have work doesn't seem to excite people. maybe that just doesn't sound revolutionary enough there's a mood out there we want something radical, new, dramatic, so that's appealing to political candidates, but i agree. what we need is somebody who

really understands the way taxes works, get some experts in there. there's been a lots of good proposals. the brookings institution, all these think tanks have spent years studying taxes, and they have lots of good idea that do not -- >> all that said, it's been extraordinary. i follow it with the proliferation of family offices. today the journal reporting on michael dell incredible entrepreneur, great job creator, 400 million he put into his family office with two guys really i want smart, 16 billion now. that's just one example. these family offices are enormous, and people may not pick and roll. >> they are huge, but i know that polls show that most people feel the ultra-rich have gotten that way unfairly. and maybe some have, but have all of them? are we going to start cherry

picking? if the dell family office started to multiply that fortune, there's nothing wrong with it. because they have succeeded, do we simply take that away from them another irony of the wealth tax is people who do not invest, do not save it, who consume it, who fritter it away, whatever, they don't pay at the tax they just spend. is that the kind of behavior we want to encourage? i don't think so >> jim stewart, i think we know where he stands. >> listen, i'm open-minded, but i see no arguments for it. >> ball's in your court, senator warren as we go to break, take a look at shares of ultimata rallying, getting a boost from sales of the higher-margin cosmetic markets, stock -- back

in august when it lowered its guidance more "squawk on the street" when we return.

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it's time for our etf spotlight. kbe up about 1.4%, on pace for its third positive session in a row. currently trading up about 66 cents, looking at the big banks, all in the green today as well jpmorgan hitting a new record high that stock has more than tripled in the past ten years. guys uber is out with a new safety report reviolation more than 3,000 sexual assault occurred during. hey, deirdre >> it is stats you just named are pretty grim. 515 incidents of rape or

attempted rape last year, nine people murdered, 58 people killed in crashes. uber's chief legal officer said he's not surprised by the numbers. he said sexual violenceis much more pervasive in society than realized the company says the number of incidents represents just 0.0002%. keep in mind this is far from a complete picture sexual assault is chronically underreported. the report owned look at u.s. operations, and it does not answer questions around screening and accountability uber says more than 1 million drivers did not make it through the screenings remember uber calls itself a platform, so the drivers are technically independent

contractors. that has help uber avoid liability for many incidents, but this is the first of its kind where important information like this is scarce. and other companies are -- organizations working to end sexual assault or violence have applauded uber's move as a key step of raising awareness and combatting abuse. >> thank you both. sue herera that is a cnbc news update at this hour. >> here's what's happening a shooting at a u.s. never base in florida, three people, including the suspected shooter were left dead at the naval air station. at least ten others were taken to hospitals with injuries the circ*mstances around that event remain unclear ford is recalling nearly 262,000 heavy-dutiy pickup trucks in the u.s. and canada,

because the tailgates can open unexpectedly, it covers the f-250, f 350 and f 450 a six-story building collapsed in nairobi at least ten people have been rescued no word yet on what caused the collapse. former numb by one, australian open at the caroline wozniacki will retire. she realized there's a lot more in life she would like to accomplish off the court she said it had nothing to do with her health. we wish her the beth that is the news update. carl, i will send it back downtown to you. when we come back, wee guess inclusive infoey jan hatzius

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larry kudlow joined us earlier last hour on those numbers saying the american work force and especially the middle classes back take a listen. >> the basic thing here, is america is working america is working by the way, the middle class workers are working. these are very big numbers the interesting thing is, on a trendline, you know, you smart your three-month movement, it looked like the economy was

softening on the jobs front. now the jobs front is coming back here with us now on a cnbc exclusive, jan hatzius it's hard to look at these numbers and not see a big contrast leer. what do you think is going on in the underlying employment picture? >> i think in general things are picking up somewhat. i would put more weight on the labor department numbers than the adp numbers. i think the adp numbers are input into the forecast, did point to something weaker, but generally you want to pass relatively limited part of any adp surprises into the unemployment estimates, but if you look not only at those numbers, but also at claims, at least at some of the surveys, it does seem that there's some pickup

manufacturing showed up so i do think the idea that we had a weaker period and now are seeing some signs of acceleration is right. >> you were looking at factors as putting some pressure on today's numbers. that didn't come to pass from reading the report >> i think it possibly did if you look at some of the details, retail was a bit softer, construction was a bit softer what it says to me, actually, if anything, these numbers are being held down by some special factors, underscoring the strength of the report what per is artificially weak. >> we have seen repeatedly october/november somewhat stronger, so some portion of what we've seen over the last

several months may be related to seasonal adjustment issues, but again, if you look more broadly at the survey numbers, i do think there's some acselling race, but you -- these figures just fluctuate. >> no significant contemplations for monetary policy, even with the wage number? >> i think relative to our expectations and what the fed has said, they're on hold, the wage numbers were mixed. you look at the front, month-to-month number cake in lower, and also if you look at production and not supervisory workers, we have seen a pretty sizable acceleration, which has actually continued in 2019 overall, i would say there's

some strength in the wage numbers, even though this number could imcame in light. how mu . >> how much of it are maybe one-offs like the gm workers coming back. >> you always want to take those identifiable one-offs out. more broadly on labor market slack, we've seen continued increases in the ratio -- not in this particular month, but the trend has been still higher. labor market is very tight.

>> what's your expectation we ahead comments earlier, saying he believes the talks are intense. >> still a rink. our baseline is there will be a phase one deal, that would involve not imposing those tariffs. it seems to be what china is demanding effectively as a price for a phase one deal we think it probably comes together, you know, but there are surprises that are definitely possible. we've seen it before, so i think you have to figure some downside risk a years old we had fairly similar jobs numbers but a ten-year that was about 2.8. i mean are rates too low

>> i think a bit, yes. even though the fed is probably out of the game for a pretty long time to come as the economy still grows, i think we will seeds upper pressure it's not a dramatic sell-off do you find that interesting >> i thought it was pretty interesting. the canada report is a household -- so it is more noisy but it's a relatively sharp contrast it used to that canada reported at 7:00 a.m., the u.s. at 8:30

in the old days when that was the case, that would have scared people about the u.s. report, but obviously now they're simultaneously. >> jan hatzius, thank you for joining us. nike led the way this week, but you can see jpmorgan 135.28 is pretty much an all-time high. we're back in a moment

as we approach a pivotal year for stocks, one group is -- see what they are on trading nation more "squawk on the street" is coming up.

now let's get over to rick santelli. >> happy strong jobs friday.

you know, many would accurately describe, and i'm talking about economists, analysts, the jobs number kind of a lagging indicator, sometimes the job market peaks at different times, doesn't always necessarily correlate to the rest of the economy in general, or even the stock market, but having said that, you know whether the cubs win the world series or yankees, or your favorite hometown team wins the stanley cup, whatever it is, you as a viewer or fan didn't play the game, but you and your city celebrates when good things happen that's kind of like a good jobs number alot of electricity gets put in, investors get excited. markets respond. today is no exception to that, except for one asterisk. interest rates have been acting a bit heavy, meaning there's a lot of buys that comes, when there's certainly fundamentals and variables that are important in the pricing of interest rates and the risk curve that just

don't seem to get through. two-year note yields popped to 164, tens popped to 186. let's go to the board. this is an intra-day chart of treasury note yields you notice how many tops we have at 185, 186? we had another one today, so i don't think it should be any surprise that the day traders down here looked at that level, knew it was acting heavy, now, if we open the that is right up on a year-to-date perspective, i just don't like the look of this formation, but you have to acknowledge the fact that there is a trend line coming in here that held, a rising wedge, and this can definitely continue to move up here, but i still say it looks like a pattern that wants to break to the down side. it just doesn't seem to be soup

yet. back to you. let's look at what's coming up on "squawk alley," jon? >> we'll get a sense of what's happening with defense and technology we're going to get that from trey stevens of the fodeunrs front from the -- that's coming up

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alibaba co-founder praising masa son both were at university of tokyo earlier. >> he has great vision, believes in the future, he has passion. probably has the guts around the world doing investment very few in the world have that courage. >> masa son you heard off camera >> i remember the day alibaba went public, jack was there, masa was over there. had time since then to spend time with both of them jack ma, maybe the single best

investment ever made given what he invested and what it is worth to softbank and many positive on softbank stock point to that stake alone being significantly undervalued, even though there are a number of missteps which he referred to there with wework >> loves founders too much. >> that's what's interesting, part of the discussion, they talked about how masa wanted to give jack ma $50 million, and jack said i don't need that much money. we can trust what we have seen with wework and uber where founders accepted tens of billions of dollars from masa, and ultimately contributed to problems down the road >> even more interesting, point out, doordash, that compete with uber, recipients of softbank vision fund cash it will be interesting to see what masa is doing jack ma is no longer chairman of alibaba, still the richest man in china i believe

haven't heard much from him lately. >> extended comments suggest that masa is not getting gun shy after wework. >> he is raising the second vision fund. a vote of confidence from david and i think everybody would agree with, the single best investment he ever made was in alibaba. so to remind potential investors of that, kind of get on stage, talk about that is important as he tries to raise $100 billion. >> it will be interesting to see if they reach it how much will they participate univision fund one has a large portion of it that has to pay 7% preferred return, debt instrument as opposed to equity. keep a close eye on it >> dow up 300. thanks to boeing, 3m and apple

let's get to kate. >> hey, carl look at goldman, sachs stock is moving to session highs on a bloomberg headline that says the u.s. set to be discussing a goldman one mdb, the scandal settled below $2 million. goldman, sachs higher by under 2.5% session highs. we'll bring you more news as we get it >> that will be on top of the already good day financials were having because of the jobs number, potential implications for fed policy if you want to go that far goldman, second best performing. jpmorgan, 135. >> it is incredible 2 billion is something that gets the market excited. they set aside reserves for that >> i think expectations are well above that >> a positive for the stock. >> even though it is a large

one. they certainly want to put one mdb behind them entirely >> absolutely. at this point, couple billion to put it behind them may seem like a pretty good deal. >> keb, best day in five or six weeks, back to first week of november for a better day for banks than today on top, best day since november 1 for the dow and s&p. small caps putting in a 52 week high need another 6% for a fresh all-time high. >> treasury yields are spiking to some of the best levels in a month. that also could be a net positive for some indications surrounding the banks as well, especially after we have seen that sub 2% level on the ten year for quite some time now >> we are up 307 hard to find victims in the current take.

utilities and others compete with rates obviously not faring as well. coming back, elon musk on trial. jurors are expected to begin isorngheting the defamation case th mni wn "squawk alley" starts in a moment

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