Transcripts For CNBC Squawk On The Street 20240622

Reaction. Plus on media week selloff, subscriber losses, advertiser declines weighing on companies. And the morning after well recap the gops best debate moments last night, the big winners and the losers. First up, the jobs number. The u. S. Economy added 215,000 jobs in that month. Unemployment remains unchanged at 5. 3 . Weve been watching wage growth average Hourly Earnings up by five cents. Thats about 2. 1 on the year. Just a smidge below the estimates. The Unemployment Rates, 5. 261 is not far from being rounded down to 5. 2 . Coming into this, i think a lot of, you have this core set of economists saying you dont need a strong number. You need a weak one to put it back. The interesting question for the next couple of hours is how many stock Market Participants are there with those economists that a rate rise is coming. If theyre not there, notable monitors of sentiment, if theyre not there, if they make that transition, what will that mean for the stock market over the next month or so . What a crazy week its been. Greece reopening, getting cut in half. Oil near the lows of the year. Theres a lot going wrong this week. Apple down 35 billion on the week. Its been a very difficult week for investors and to the extent that we discussed rates, some of these yield plays have been hit hard this week as well. You look at mlps. We talked about the pipeline related mlps getting crushed. It was oil first. Then they moved onto semi conductors. Weve talked a lot about the incredible melt down that took place in the media stocks and yesterday health care seemed to be getting hit. Not that many places to hide. Perhaps a difficult week for those in hedge funds than those invested in the general market but pain was, i think, one of the words when it came to the equity market this week. It is some of it. Its august. August is a tricky trading time. The volumes on apple were big. You can say youre getting an outsiders reaction but that was big volume earlier in the week. More on the jobs report. Please bring in lindsey, chief economist and david kelly, chief global strategist at jpmorgan. Lindsey, whats your take away from the jobs report . I found this quite disappointing. Certainly you can make the argument that upwards revisions helped compensate for that miss but we have to recognize that after a 260,000 rise in may, payroll momentum has slowed for two consecutive months falling down toward the 200,000 level which is the bare minimum. Not the type of improvement that the fed was hoping for to justify a near term rate increase. What lindsey does identify is the way in which our expectations have dropped for the economy from where we were at the tail end of last year and the type of growth we hoped for, despite that, this appears to be good enough, they say, for the fed to hike, correct . I think the fed is still on track for september. Id like to see 300,000 jobs per month as opposed to 200,000, but the labor force goes to 69,000. Were creating more jobs than workers right now. That is still tightening the labor market. And we also saw a decline in people working parttime who would like to work fulltime. By the metrics that janet yellen looks at, theres further improvement. I think the fed and the economy is on track. I think we have taken steps in the right direction in terms of the labor market. Weve seen over 50 consecutive months but the pace of hiring remains insufficient as weve not yet seen the pool of available labor drawn down enough to spark wage pressures. We look at average Hourly Earnings on an annual basis, 2 . Do you think there wont be a rate rise . I dont think they have enough justification. Looking at inflation, were still in a deflationary environment. How do you expect roughly in the middle of the pack of the voting pack, when lockhart said its hard not to raise rights in september. Thats an individual Committee Members opinion. Weve also heard from evans out of chicago continuing to talk about the first rate increase as a likely 2016 event. Lockhart being the only hawk on the Voting Committee this time around. Hes going to have a more hawkish tilt in his language but if we look at the competition of the fed, its dovish. Looking at inflation, very sluggish. The labor market showing no further improvement. I dont think theres enough to justify a rate increase just six weeks from now. If i know you, you wanted them to move a long time ago. Does that kind of talk drive you crazy . I think the key thing is to recognize how little labor supply we have. This is not a goldilocks economy. 200,000 jobs in this kind of economy does represent improvement. We saw an increase in average hours and a decline in people working parttime. We saw another 212,000 jobs created. Its pretty good and i dont want the fed to wait too long. Thats a classic mistake they make. They always wait too long. I dont think there are a lot of good, available workers out there anymore. I think the big unanswered question for many of us over the coming sessions is going to be if theyre going to hike, regardless of whether you think they should, if theyre going to hike in september, are equity Market Participants there. Clearly youre not. As a broad equity investors, if they get a rise sooner than they thought, how will the market react . I think it will depend on how the fed indicates the further rate increases. Lift off of 25 basis points does not mean theyre going to initiate a 2004 tightening style where they continued to raise it at every meeting. T going to depend on the feds communication with the market to emphasize a very slow and gradual pace of rate increases over the next several years. David, this week it feels as if we lost momentum in the equity market. We have gains for the s p 500 for the year as we enter the beginning of august or the end of august, and yet, still, theres that perception that maybe people are beginning to take money off the table. Whats your view . We have a lack of good news here. Were still waiting on the fed and thats not necessarily good news when they begin to raise rates. We have problems coming out of asia. Theres a lot of weakness in emerging markets. Pmi indices. You have certain sectors like as you saw the media stocks taking a hit. Its a bit weak right now but overall when we think about it, if Interest Rates rise, theres a lot of cash that needs to be put to work. Where else is it going to go . I think that when we get some of this uncertainty about the fed, uncertainty is poison to the market. If youre uncertain if the fed goes down, with one rate hike and then they make clear were going to see a very gradual lift off to rates, once they lay that out, that reduces uncertainty. That might allow the market to move higher between now and the end of the year. Lets hope so. Thank you both for joining us. Last nights debate, both of them, generating a lot of buzz. John is with us this morning. Good morning to you. Whats the headline today . Reporter well, i think the headline still in the Republican Party is donald trump. He went into that debate as the center of attention, carl. He was at the center throughout the evening. Even under tough questioning that fox moderators when he was examined about bankruptcies within the empire, he said everybody uses the Bankruptcy Code to make successful business transactions or make them work out successfully and he came back and said what the country needs is somebody like me. By the way, this country right now owes 19 trillion and they need somebody like me to straighten out that mess. Reporter we also had a moment that ive never seen before in a partisan debate. When he was asked to declare that hes feelty to the republican nominee even if it wasnt him, he wasnt playing. Were looking for you to raise your hand now if you wont make that pledge tonight. Mr. Trump. I dont know. You hear the calling from the audience there. Donald trump wouldnt pledge to be the supporting the nominee. Even in the under car debate with the seven lagging candidates, Carly Fiorina used donald trump as her lift off point to separate hes from the rest of the pack. I dont know. I didnt get a phone call from bill clinton before i jumped in the race. Did any of you get a phone call . I didnt. Now, as for the others, scat walker had a solid performance. Marco rubio was also very good and john kasich, the last qualifier, the last one to make the cut, home state governor in ohio was very energetic. He may have helped himself more than anybody else. John, obviously Carly Fiorina lit up the social media in the first debate. I know you tweeted that kasich probably got the biggest bang for his buck last night. The New York Post today says rubio won. What do you think can walk away the happiest thing . Reporter i think walker, rubio and kasich all walk away happy. Kasich started lowest and lifted himself up. Rubio has been lagging a little bit as trump as taken over the attention. He put himself squarely back into the conversation. It will be interesting to see the aftermath of his exchange with meghan kelly when he asked him about rape and incest exemptions. He said he never sponsored there. It turns out there was a bill that had something included with it. Scott walker has been presumed to be the alternative to jeb bush when we get to the real finals. He was very solid. Not especially dynamic but solid. And jeb bush is one who had a chance to seize more forcefully his slot in the race. I dont think he quite did that. He was okay, and he got better as the night wore on, but i think jeb bush is going to have to raise his game in the next debate. At what point does that become critical for jeb bush, do you think . Reporter i think its starting to get critical now. Look, he has raised the most money. He has been the presumed establishment favorite, and he cant let the race drift for mush longer before he reminds people yes, this is why we backed him in the first place. If that doesnt happen, the attention will be the dynamic between donald trump and perhaps rubio and walker, maybe kasich edging into that mix. John, a lot oh think about over the weekend. Our thanks to you. Well come back to you later today. When we come back, will the cord cutting continue . Available vision out with results. Also jason furman will join us with a white house reaction to the jobs numbers. A down day today for the dow would be seven in a row, something weve not done in four years. More squawk on the street from post nine in just a moment. Quarter results. It was largely on the back of price increases and gains in high speed data customers. Subscriber growth remains somewhat weak. They lost about 16,000 video subs. This coming to cap. A dramatic week for media stocks. Starting with disney, and then continuing fing fall out from f via come. It was about cord cutting and the concerns there, the slimmer bundles and dont forget advertising. Weve had two years where the up fronts which take place in the spring were not particularly good. Viacom is at the front in terms of seeing decline in ads. Cablevision, well watch that stock today. Theres a bid there at least in the stock because of the idea that at some point al tees, perhaps it will come for cablevision down the road. I dont expect that any time soon but nonetheless, that has helped those shares climb or had a very strong year in fact. The overall numbers for the quarter not too bad. Consolidated operating income was down but consolidated net revenues up helped by price increases. Theyre broad band. Thats what these companies are all about but our Parent Company comcast was a victim. Even though its viewed as a broad band company, they have networks and a cable network. The question being what will the future look like as more and more people do fall off the big ere bundles . Its still going to be a strong business but will it have the margins its had in the past . What will that mean for a lot of different things, including, perhaps, our salaries. Who knows . The interesting thing is its quite aggressively targeting those who want to cut the cord. Hbo is a stand alone. The first to do that. It is one of Many Companies trying to keep the customer relation. There is a lot of value in that bundle not just to programming but when its linked with broad band and sometimes with your phone at home as well. The cable stocks took it a bit this week but it was largely its a content provider story. It is the con kent provitent that suffered. We have an upgrade of time warrener this morning. They point out that in their opinion, the multiple becomes lower. I dont expect youll see a lot of Value Investors trade into these names but a resetting of expectations and therefore the multiple that should be accorded some of these stocks perhaps with some more muted stocks. Weve been talking about this for years. This morning, just briefly, you want to see it in europe, the big broadcasters in europe in every major country are bound. Its a theme thats now going around the world. When we come back, art cashin will join us plus jason furman, the white houses response to the jobs report. Well get you one more look at the futures which are dipping in and out of positive, negative territory. A lot more from squawk on the street straight ahead. All right. Were about seven minutes before the opening bell. Lets bring in art cashin. Where am i going to go this morning . There was an employment number. What are your thoughts . I thought it was a little bit like paint by the numbers. It came in pretty much on all levels. You had a slight up tick in the wages. Thats beneficial. Thats somewhat reassuring to the fed. Well see, but the bond market doesnt seem too spooked by it. The yields on the tenyear are down. I think were going to have to work our way through it. Payroll day has a mild upward bias about 60 historywise. I saw this morning in 2013, 2014, were up 20 of 24. This year were down five of six. Thats because youre getting closer to rate hikes. Thats the problem. I think the most interesting dynamic will be whether people like you who are so involved in the stock market will begin to shift to what the economists are saying that theres a rate hike in settlement. Youre not there and a lot of other people are not there. Will there be a rate hike in september, and if there is, what does that mean for the equity market . It will put measupressure on equity markets. First marginal. You have other dynamics here. Whats going on in the media stocks. The idea that so many Fund Managers have underperformed this year, and youre going to see some portfolios being restructured. For now, believe it or not, the fed move is more atmospheric than direct. It may get overwhelmed by other things going on in the markets. Yesterday ben willis echoed what you were saying about people who were being sacked were not performing and the liquidati liquidation, not on the underperformance buying stocks doing well but the liquidation of stocks doing badly. Which do you think is a more major dynamic . The problem is, weve had this discussion since 2008, and that is when you cant sell what you want to sell, you sell whatever you can. In some of these cases, stocks have gotten to sud lin weak, biotechs and other things that people lighten up in the things that have done well. You saw what looked like momentum stocks. It kind of roll aid long ted week. It ended with health care this week. I think part of the problem is and we discussed this over the last couple of weeks, the amount of cash on hand that mutual funds is at an all time low. And the only thing thats important with that is if the market begins to sell off and they get redemptions, they have no money so they have to sell other stuff so that becomes a vicious cycle. Thats what you dont want to see. Well be watching the opening bell a few minutes from now. Thank you. And that opening bell is about four minutes away. Stay with us on squawk on the street. Were back right after this. Here at td ameritrade, they love innovating. And apparently, they also love stickers. Whats up with these things, victor . We decided to give ourselves stickers for each feature we release. We read about 10,000 suggestions a week to create features that as traders wed want to use, like social signals, a tool that uses social media to help with research. 10,000 suggestions. Who reads all those . He does. For all the confidence you need. Td ameritrade. You got this. Youre watching squawk on the street live from the Financial Capital of the world. The opening bell in just under a minute as we cap off a crazy week. Obviously all the pain in media stocks. We continue to watch oil which is flirting with 44 once again. A lot of the momentum names that have been chopped by a third in market cap. Etsy, mount mountain and more. And the jobs number, 215,000. The estimate 225,000. And earnings up. 2. About 2. 2 year an year. Thats in line as signs of Inflationary Pressure continue to be hard to find in this economy. Lets get to the opening bell. At the big board Charity Water launching a september campaign. Getting water to people in developing countries. And the United States coast guard doing the honers. No we have movers this morning. Videa is one. They bucked the slow down in the pc market as a lot of people upgrade their existing computers. Their Current Quarter guidance is above expectations. Thats going to be one name in this space that we know has been challenged. And monster beverage is a top gainer. It fell heavily last night. Coke took the stake in monster beverage. The growth is slowing but a lot of that is attributed to the fact that theyre changing to the coke suppliers. Its an inventory effect that theyre suffering but some people boyish. Theres a belief that theyll be better able to target the products around the world once theyre able to distribute from the coke system. Seeing a little bit of nibbling here in some of the media names. V viacom is the biggest gainer. Time warner and others but we know whats happened to those stocks over the last couple of days. You could have picked up via k kom yesterday when it was down and its now 46. Having a good open here. Well see if it can continue that momentum. Its not as though they had a great quarter. But the stock suffered so much after we heard from disney, something weve discussed at length in terms of a very small sub decline at espn but exacerbating the fears that have been in the marketplace for quite some time that the world is changing is and starting to change rapidly in terms of consumer tastes and how they pay for what theyre viewing in terms of big bundles or smaller bundles or an over the top solution overall. What a week. But theyre all up at this point but discovery is down and netflix down today. It has been what are we talking, a 53 billion market value. Lions gate had results and had the same problem as viacom. Not a lot of big movies released in the quarter. Orange is the new black, hunger games coming down the road. Thats good for a 3 gain. After a miserable couple of days. Theres always the idea of consolidation whether its amongst Companies Like lions gate or some of the other providers that are out there of content that theres a feeling that perhaps they wont have as much market power in this changing world as they had previously. Does discovery need to do something or a scrips of an amc. You can go down the list, not to mention viacom and cbs. Dont expect anything near term but its not to be a theme that seem seize on at some point. What about the number of cable channels . Do we believe theyll stay in volume but become more marginal businesses . Do they get sold . I think the companies that control them, maybe they slim them down. It depends. I think you probably are looking for opportunities to cut costs at many of these places. It depends on the network, really. Right. Isnt there a bravado that you couldnt really shut your Cable Companies down . Some have been shut or the programming has changed. That would be true. Hershey is going to be a problem. 0. 78 beats 0. 75 but sales flat. Additional promotional spending, theyve already cut 300 jobs and theyre dealing with higher costs. Im sure if jim was here, hed have something to say. The stock down 2 this morning. Mondelez shares, taking a 7. 5 stake. Shares are basically where they started the day yesterday. Not a huge reaction there to a decision to put 25 of a fund in one stock. The journal writing today and as i reported yesterday, that if there is an expectation some way down the line or if there is an expectation that 3g controls kraft heinz would come as a potential buyer, youre talking a ways away. Thats what i was reporting at this time yesterday. They echoed that as well. Sometimes you talk to the same people who tell you the same thing. And true car, the founder of true car, the chief executive stepped down last night because of the strange relationship that theyve had with some of the dealerships. Obviously, they prewarned that things were not as good as people thought. They managed to beat those lowered expectations but true car is down 6 at the open. I see a buy from j and p. They think you can add 60 from where we are now. Some hanging in there on true car with the number of subscribers it has and the business its generating if not the margins. Lets get to the jobs numbers. As we said, 215,000 jobs added in july. Unemployment rate remains at 5. 3. Lets go to jason furman, the chairman of the White House Council of economic advisors. Happy friday. This was seen as an on target number, a solid number but is it your sense that with the year to date average now 2. 11, itll be hard to get numbers that are well above this . Youre right. It was very much on target. Look, 15 of the last 17 months this economy has created over 200,000 jobs. It is just month after month. Keeps adding to those jobs thats bradley bringing the Unemployment Rate down and bringing more people back in who werent in. And the healing of the labor market continues . Does it make sense to you how earnings are reacting to the jobless rate . Theres been some stories this week arguing that the wage as we know it is not the same anymore. Instead companies are adding benefits and netflix changed their parental leave policies. Are companies not having to increase the amount of money they give us but simply the way they treat us at work . Weve been encouraged by the Companies Taking Workplace Flexibility seriously. We had an event where we took deans across the country and a lot of them agreed part of the importance for the future is making the workplace more attractive to their employees. In addition to benefits, wed like to see wage growth. Wed like to see more wage growth than weve seen to date and i think a stronger economy would help and a higher minimum wage would help as well informal. Im sorry. Just to recap, you think the higher minimum wage will generate jobs . We were talking wage growth. The evidence is it would be higher impact on jobs. Its in the nature of things that rightly or wrongly, the administration will take credit for job growth in the same way it would be blamed if it wasnt good. Wh what have you done in an environment where the debate were having is whether the fed will raise Interest Rates. What effect do you think it will be on the jobs market . We leave Monetary Policy to the federal reserve. We leave them to analyze it and implement it. We talk about fiscal policy, what we can do to cut taxes for middle class families and some of them are policy Like International trade. Youve done no work on the effective Monetary Policy on the labor market in this country as a department . We take a look at the economy as a whole. We try to understand all the factors impacting the economy, but were focussed on what we can do over here, not the choices the fed is going to make on their own. Well, jason, when it comes to infrastructure, for example, which i think has a fairly broad support, nonetheless, there doesnt seem to be a lot of momentum to get anything done. We have a congress that barely managed to extend, i think the highway bill for three months. Do you have any expectation as we move deeper into a president ial year that anything can really get done of substance when it comes to infrastructure . I think kicking the can is almost a compliment compared to what weve seen congress do lately far few months at a time with the highway bill. Weve had a long term out there. One that authorizes at a higher funding level. Hi ive talked to ceos and economists and people across the political spectrum that agree its the right thing to do for our economy. Congress has yet another shot to do it. Weve love to see them do it. At the debate last night jeb bush was asked whether or not 4 Economic Growth is doable. He said it is if we begin by lifting our spirits up. Do you think 4 is in the realm of possibility . I havent seen any serious economists say that thats within the realm of possibility. What our focus is, though, is all the steps weve been talking about to raise growth. We need faster productivity growth. We need to get more people participating in the labor force and i also think president has an approach of middle class economics. Make sure the wages grow for the middle class. Its going to help people work and buy things and expand our economy. Theres all sorts of things. Are we doing everything we can to strengthen our economy . On to that note, give the middle class a pay rise is Hillary Clintons rally cry. She put it at the heart of the discussion that she would like to have in reference to the Labor Movement in this country and the need to strengthen it moving forward. Have you done analysis on the sharing economy that the uber and perhaps airbnb and the extend to which thats changing the kind of job security the people have and the wages they could expect through their lifetime . Its something that we are taking a look at and are doing analysis on. Its a rapidly developing area of the economy. A number of these companies are adding jobs that are at a rapid clip. A lot of it doesnt show up in the data so it can be hard to track, exactly, but i think its a really important issue for not just us in government but economists more broadly to understand better. I think the point that Hillary Clinton is making to paraphrase is its difficult for workers in that environment to capture as much of the value chain as they had done in the past. Is that your reading as well . I think innovation is great. I think breaking down artificial barriers to entry can be great for consumers and great for workers but you also have to look at the full set of rules and making sure everyone is playing by the same rules for the economy. And thats what a lot of people are taking a look at right now in this area of the economy and more broadly. Jason, as always, its good to see you. Thanks for your time. Jason furman talking about the jobs number today. The dow is off about 12 points. Apple the best performing component. Kourtney reagan is on the floor. Reporter good morning. During the interview, things started to get a little better. Off the lows of the session so far. We got the jobs report this morning and it could end up that those numbers are just right for rates with september. Back on the table for some that had doubted it previous to todays new numbers. If we take a look at the tenyear and the reaction after the jobs report, the yield inched higher and reversed course again. Im sure rick is going to walk us through that as well. We take a look at what happened overseas. In asia, equities stronger. There was a new report out of the peoples bank of china, perhaps it gives more credence that the government is going to have to inject liquidity. In asia, industrial data not great. A bit of movement after the jobs report but not much as all. Yesterday consumer discretionary, one of the biggest laggers as well as health care. Things have turned around a little bit for the media stocks but maybe only because theyre having their worst week since october of 2008. Things have started to turn around this morning. In video posting, better than expected earnings as well as re kn revenue. This flies in the face of perhaps some of the worries you can see a really nice jump for invid ya at the open of about 10 . Allergan posting some positive earnings, getting good reaction. At least three analysts giving price target upgrades to allergan. The shares are down slightly in the early go. Take a look at solar panel sun edison. Hitting seven month lows after hitting a quarterly loss. It does look as if its continuing to do that downward slide around the 17 handle. And brand licensing retailer iconic, the ceo is stepping down from the position to explore other opportunities. Shares really falling. This is a company that owns licensing deals like candies. Wall street doesnt like that neil cole is stepping away. Nomara cutting from buy. And take a look at the food and drink. A number of them moving in a bit of different directions. Sprouts down more than 6 . Noodles and company down more than 22 . That after earnings of both of them. Bojangles doing better. David, back to you. I dont know whats going on with noodles and company but thats not good either. Court n kourtney, thank you. And the Biotech Sector getting hit. Lets get to the bond pits with rick santelli. Listen, its all about the curve. Its all about the curve. Curve, curve, curve. Now, remember, when it comes to trading, perception is all that counts. The perception in traders minds, especially when it comes to the fed. Nobody knows the realty. Were not starting with the tenyear. Were starting with the yield curve. If you open the chart up, flattest the curve has been since end of april of this year. It isnt a long time but its covered a lot of ground. Lets look at the numbers. Were currently at 73 in twos. Up sefage. 1. 53. Theyre up eight. Settle at 2. 18 on 30s. They are up three. So what we are seeing, 30year bonds settle at 2. 86. All the maturities, yields are up until you get to the 30year bond but theyre up the most in the front of the curve. That says it all. If you look at the short rate, not the currency, the fed fund futures, they describe the same dynamic. The other market to watch to give you the perception of what the fed, at least the words are falling on more risk cog any zant ears is the dollar ears. Look at the oneday. The twoday is interesting. We built a consolidation above yesterdays day and the dollar index as a light glide path because nobody knows the reality. The perception is put at the best levels since mid april of this year and the last chart that we usually start at is tenyear note yields and you can see theres a lot of volatility but theyre coming off a bit. Bund yields went down after that day the. It isnt a great number to many traders. Weve lowered the bar but its good enough for a fed rate hike should they deliver and that sort of is the big news of the day. Simon hobbs, back to you. Thank you, rick. When we come back, an Inflection Point for the Media Industry coming up as double digit losses for viacom, disney. Jim stuart will join us with his take. Wondering what happened to jim mac aif i . We found him and well have parts of an interesting interview. It took Joel Silverman years to become a master dog trainer. But only a few commands to master depositing checks at chase atms. Technology designed for you. So you can easily master the way you bank. To folks out there whose diabetic nerve pain. Shoots and burns its way into your day, i hear you. To everyone with this pain that makes ordinary tasks extraordinarily painful, i hear you. Make sure your doctor hears you too i hear you because i was there when my dad suffered with diabetic nerve pain. If you have diabetes and burning, shooting pain in your feet or hands, dont suffer in silence step on up and ask your doctor about diabetic nerve pain. Tell em cedric sent you. More and more, data is visual. In fact, the number of mris has increased by ten percent a year. And a radiologist might view a thousand images to find one tiny abnormality in shape, contrast or movement. Because its so challenging, a Research Project is teaching ibm watson to see. In the future, it could help clinicians spot key patterns quickly and precisely. Ibm watson is working to make healthcare smarter every day. Oil is still sitting below 45 a barrel. Jackie has more and heading lower. Reporter good morning. As a matter of fact, on this friday morning the entire Energy Complex is seeing pressure. Part of that is because of the stronger dollar. Dollar index over 98 but at the same time traders saying this is technical pressure. The next stop to the downside that well test to support level, probably 43. 50. Not sure its going to happen today. We do see selling into the weekend but were looking for rig count numbers. A couple of surprises coming over the last couple of weeks seeing rig numbers increase. Well get back to you before the close. Thank you very much. When we come back, more on the media selloff this week with the dow down some 40 points. Dont go too far. Can a business have a mind . A subconscious. A knack for predicting the future. Reflexes faster than the speed of thought. Can a business have a spirit . Can a business have a soul . Can a business be. Alive . Its been a particularly rough week for the index composite. Lets get word on that with kate rogers. Reporter thats right. The nasdaq really was where the action was at yesterday, closing down at 1. 6 . Right now were doing not as poorly. Down about a third of 1 . Showing progress in a week pc market. Thats higher by more than 9 . Groupon is also lower today despite the 3. 1 increase. Thanks so demand for the daily deals, its lower by about 3 . Apple, its down around 5 for the week but slightly in the green today. This after the release of apple music numbers. The big stories yesterday were keur keurigs massive fall. That stock has rebounded today. Tesla cut its sales force and that stock is lower today and viacom was down but has rebounded today. When we come back, jan, hatzius. A powerful new dell 2in1 laptop, and durable new stellar notebooks, so youre walking the halls with varsity level swagger. Thats what we call that new gear feeling. You left this on the bus. Get it at the place with the experts to get you the right gear. Office depot officemax. Gear up for school. Gear up for great. Dentist appointment when my teeth are ready . Can it tell the doctor how long you have to wear this thing . Can it tell the Flight Attendant to please not wake me this time . The answer is yes, it can. So, the question your customers are really asking is, can your business deliver . Can you tell what makes them so different . Did you hear that sound . Of course you didnt. Youre not using ge Software Like the rig on the right. Its listening and learning how to prevent equipment failures, predict maintenance needs, and avoid problems before they happen. You dont even need a cerebral cortex to understand which is better. Now, two things that are exactly the same have never been more different. Ge software. Get connected. Get insights. Get optimized. Good friday morning. Welcome back to squawk on the street. Im Carl Quintanilla with simon hobbs and david faber. Taking a look at the markets. Dow is down about 28 points. We got the jobs number slightly lower than estimates but Everything Else almost perfectly in line. The tenyear at 2. 222. And happy birthday, sara. I know youll be watching. The jobs number coming in exactly in line with expectations. Many people now believe it means that the fed will hike or start to hike in september. Media stocks down big this week as cord cutting fears persist. Jim stuart will give us his take. And a live report from cleveland when we come back. Later, goldmans chief economist joins us to weigh in on the jobs number and what it could mean in terms of the jobs number and Interest Rates. And this morning, clearly, steve, they werent thrown by the adp number. The private sector came in above the number of 185. The september rate hike looks to be baked in with a jobs number above 2 00,000. In line with estimates ain and appeared to meet the criteria of further improvement in the labor market. We did math. Heres what we came with. 52 probability of a rate hike. Thats above the 40 from yesterday. 12 of 12 economists we read and who we talked to calling now for a september rate hike. Two guys wouldnt make the call. We didnt include them in there. Heres the data that got them confident in that rate hike. 2. 215 is the number. Labor force participation unchanged. Lets take a look at where the jobs are. Professional and Business Services up 40,000. And theres retail. Its been above 31 one month in a row. Makes me question how weak the consumer can be if retail is hiring the way they have been. L leisure and hospitality up. Other areas that gained, including construction, manufacturing. Thats another good sign for growth but the bulk of the gains came in the service sector. The only service down is about 9,000. And increasing the chance for a second rate hike in december. The next debate is not about one rate hike but the chance of two rate hikes and im thinking that could be the debate on the sud lines at the upcoming town meetings. Just when we think were done thinking about one hike, we need to start thinking about another. Maybe thats why janet yellen isnt turning up. She doesnt want to go there into that discussion. It seems like if they hike, theyre going to hike its over not because the economy is really strong. They just need to get started. They wont do a second one in the year, will they . They could. Theres a bunch of jobs and data along the way. If you make the argument that zero is not right, 25 basis points or what will be, by the way, everybody should be really because its really 37 basis points, the new target range from the fed. Its kind of hard to make an argument that it should be that low. Because you get to an Unemployment Rate by tend of the year below 5 . Exactly. And in the feds way of viewing the world, inflation comes through employment. It comes through higher wages. It comes through slack being reduced and that would be their concern about inflation. Well leave it there for the moment. Thank you. Michael hansen is a senior u. S. Economist, and jason pride, director of investment also joining us. Michael, would you agree with what you just heard from steve leastm leaseman. I think this is one steady step toward a rate hike. I dont think its quite a done deal. We have five weeks of data. And a lot can happen in five weeks. The fact that wages are still a little soft and the inflation outlook is a little concerning is probably the only thing left to be checked off if their view, but i think weve probably in line for a september rate hike. Suggest not a rate hike until december is goldman. Well have someone talking about that in a moment. Whaus your take on the markets . I think we need to recognize that were seeing something just a little bit over a 50 chance of a rate hike in september. This is nowhere near a done deal, and then secondarily, i think if i were setting in the Committee Members seats, id be looking at this from a perspective of where is your greatest risk . Inflation has yet to show up. Wage growth is not there to the degree you normally see it at this point. I would think maybe in their heads, even though the market is reflecting a greater than 50 chance, in their heads, the odds probably favor they wait until december or at least try to communicate a slow pace, already get ahead of the idea that once you do one rate hike, the market starts assuming the next and you are going to need to slow down that mentality so they put the right pace of rate hikes on the table at the onset. The problem is youre not a central banker and youre i completely agree. And your entire career credibility is not on the line that you failed to hike and then its really too late to hike. You know . Their back is against the wall. They have to come out so if the economy comes out, again they can cut rates. Or they also have to do what perhaps is the opposite of what a lot of central bankers have done recently and hold your cards a little bit longer so you dont have the flipflopping of rate hike and cut three months later which weve seen a lot of Central Banks have to do because the economy is not Strong Enough to really handle a rapid pace assumption of rate hikes. I wonder, to jasons point, she has said the longer we wait, the steeper the climb will be. We got noise from the bang of england. Do you think theyre beginning to get the kind of cover they need to move in september if they wanted to . I think the bias right now in the committee, if earn able to sneak into discussions in the hall is probably leaning toward september as opposed to later. If you think about what the primary consideration of the fed has been, its been the libor market in part because they want to see improvement and in part because it tells them something. As steve mentioned, they think about the likely outlook for inflation down the road. I think right now the fed is thinking september is more likely than not, its not a done deal. I do think you could imagine scenarios in which they dont hike. I think its more likely theyll hike september and if the trend continues, december as well. This piece with information is interesting. Its a symptom of whats happening in the market. 12 out of 12 people believe theres a hike in settlement that Steve Liesman spoke to. You know youre not sure. Its 5050. Question. What happens when the stock market guys like you who aren convinced of september move to a position where they realize its about to happen . What will happen to this market . You know, im going to answer that question in a little bit different way. I think you have to be careful and they have to be careful about the possibility of hiking in september and somehow suddenly convincing the market that theyre on a much faster paste pace than they want to be. I would argue the pace thats not im at a ballpark of once every other meeting. Forgive me for interrupting. Weve run out of time and i want to ask you this question. If you guys in the stock market realize a hike is coming in september regardless of if its due or not, what will it do to the markets . If its perceived that theres one every market every other meeting. The stock market dont like that well. Are we talking about a marginal pressure on the market or are we talking about a correction . Well, i mean, at this point were still talking 25 increments. I would say a marginal pressure. I wouldnt say a dramatic correction but i would argue that the stock market is not going to like that path of thought. Thank you both. Have a great weekend. The other big story today, last nights republican president ial debate. John howard is live on the ground outside the debate site in cleveland. Its all about donald trump. I see he thinks he was treated unfairly. Yes. He was complaining as soon as the debate was over that the moderators were unfair to him. I think they asked tough questions but i think they were fair questions. There was more than just donald trump in that debate. You had a mini drama there with some of the lower ranked candidates trying to go after each other as a means of breaking out. That happened when rand paul was pressing his case against nsa surveillance against the president and Chris Christie who just barely made it onto that stage has fallen quite far from when he was once a front runner. He used the moment to go after rand paul on security. Thats a ridiculous answer. I want to collect more records from terrorists but less records from other people. How are you supposed to know . I dont trust president obama with our record. You gave him a big hug and if you want to again, go right ahead. Its not clear that either of those gained too much from that debate. Rand paul after went after donald trump. Jeb bush was a little bit more nuanced about it. He didnt aggressively go after trump but he got a question when he was asked if he said some pretty nasty things about trump in private, he pushed back against that but acknowledged that there are some areas where hes been critical. Its true, but i have said that mr. Trumps language is divisive. First of all, jeb, i am very happy that you denied that and i appreciate that very much. I mean, hes a true gentleman. He is. The one thing he did say, and i mean that. The one thing he said about that was my tone, and i also understand that. We dont have time for tone. We have to go out and get the job done. Reporter and really, thats the core challenge that donald trump is putting before republicans. Are they really going to take the position that they dont have time for tone nuance and policy positions and all the things that hes not offering them right now . So far hes been leading in the polls. Well be watching over the next few weeks to see if this debate changes any of those impressions. Thank you. Thank you. Early ratings suggested the highest rated partisan debate in the history of debates. Well keep our eye on that. It was good television. It was. Lets tall it around 485. Its billions. The New York Times jim stuart will weigh in own squawk on the street comes right back. Today after fears of cord cutting joelgted the sector. Joining us today, jim stewart. His column this week focuses on the struggling coal mine industry. Well get to that in a minute but we want to talk media. People are asking how is it that this generational shift in viewing can be discovered in the course of a couple days. Well, of course it wasnt really. None of this is really new but whats new is its starting to show up in some real numbers. You have the Media Companies ratcheting down their growth expectations. You see softness in the actual advertising. I think its something that people have been afraid would happen, thought might happen, at least if youre investors in this company and now it looks like it is happening and all of a sudden, wed better get out of here. I think its a little bit overreaction. Its not going to happen overnight but the trends are not good. Lets face it. The cable industry is a business built on selling people things they do not want. And ultimately, i think what were seeing with the benefit of technology, consumers are finding a way to get and pay for what they want. You see netflix, amazon. Youtube is up ending the tv market. Theres a generation coming up thats not going to be force fed channels they dont want and theyre not going to watch it when theyre told they have to. And that is scary. Or just pay for it. I mean, i read about coal this week. Its facing what could be an extinction event. Is cable facing an e tinxtincti there. Were not there yet but its lurking in the back of minds. When you say cable, is it the distributors or those who provide the programming . Im talking right now about the programmerings. Theyre all tied together. The Cable Companies themselves have had to start providing these socalled skinny bundles. Theyre just beginning that but that was a huge breakthrough. What could they do . People were going over the top with netflix. Hbo, a lynch pin says were going to go over the top. Theyre forced into it. Once that starts happening, the whole model starts eroding. It is important to point out the Cable Companies, the most profitable product is broad band. They will profit from that. I think they probably will be relatively realistic about this thing. Thats why theyre trying to cater to consumers. Youre at the New York Times. Youve been going through this entire question in a different way for a long time. And its difficult. It is difficult. I mean, you get huge transitions like this in an industry and you get entrenched players that are clinging to old models. Its really hard to move these aircraft carriers. Disney is a fascinating example. Clearly espn is the biggest beneficiary of the bundle. Everybody who doesnt watch espn is subsidizing the people who do. The people who watch espn and paying for it are getting a fabulous bargain. Disney is doubling down on this strategy. They sued verizon over their skinny bundle program, and theyre smart people. You know they have done the numbers to see what would happen if we go over the top with espn. They came on and said were not ready to turn that switch. There are still a lot of people. His words were we could do it today but its not time. You know theyve studied that and theyve got the technology and would do it. They will make money. Espn is a product that people want and love and are willing to pay for. Theyll make money but will they make as much money . The question is will they make money in the future if they bid up the sporting rights. Whether that business is still viable over the top, presumably not without the subsidy youre talking about. Big money events they have their hands on. But theres a whole food chain of people who are going to have to adjust their expectations. If this model shifts, its the players and the teams that have to adjust. Thats going to go down. There will be no equilibrium. It will be a painful process but itll still be there. Do you think the risk for these companies is in acting too late or too soon . Its calibrating a business. You dont want to cannibalize your own business but in technology, what you do is dig in and defend the existing model, then you will be extinguished. You will die. You have to get ahead of it and stay on top of it. Hbo is a good example. You have to manage it. Or perhaps in the interim somebody comes along and says this is how were going to cut costs through the operation. You havent had that yet. You just had espn identifying cut costs. Presumably when you deal with it, your stock could rally. Right. The minute they start selling the cost cutting, theyre not growing. Theyre doing this quietly because they dont want people to think were slipping from double digits to single digits. Wait until the negative numbers start showing up. Theyre highly valued. Not the mention the profitability of their business. It will warrant a lower multiple. Talking about a business that might be going away, coal. Coal, i was stunned to look at this. I zeroed in on it because of recent bankruptcies. Obama came out with the epa regulation. Look at some of these stocks. Pea body, i think it was 16 a year ago. Arch was 33. Pea body hit 0. 93 this week. This industry is in a downward spiral. Its like fracking. The abundance of natural gas and new Solar Technologies are wiping this industry out. Is the government piling on if their plans. Do they need to do what they announced this week . It was happening anyway. Its just pushing along. Theres no question, first of all, clean coal was a myth. Its the worst pollutant we can burn. Natural gas has half the carbon emissions. Ironically, i think, is that its the market that has done this. Its really not washington. Its not the activists. Its not the environmentalist marching around out there who were also against fracking which has been the savior here. Its the market, and the cheap natural gas. Were stampeding toward cleaner fuel because its cheaper. Market forces. Jim, its a good column. Good to see you again. Coming up on the program, egypt unveiling a brand new extension to the suez canal calling it their gift to the world. Some worry it wont live up to the hype. Well be live in cairo after this break. You focus on making great burgers, or building the best houses in town. Or becoming the next highlyunlikely dotcom superstar. And us, well be right there with you, helping with the questions you need answered to get your brand new business started. Were legalzoom and weve already partnered with over a million new Business Owners to do just that. Check us out today to see how you can become one of them. Legalzoom. Legal help is here. In the us, three in ten College Students drop out. But how can you spot whos at risk . The one who lives far from campus . The one who works the night shift . The one with new responsibilities . One thing cant tell you, but the right combination can. Universities are using ibm analytics to understand pressures in and out of the classroom some expect to cut dropout rates by twentyfive percent. Ibm analytics is working to make education smarter every day. No students ever been the king of the campus on day one. But youre armed with a roomy new jansport backpack, a powerful new dell 2in1 laptop, and durable new stellar notebooks, so youre walking the halls with varsity level swagger. Thats what we call that new gear feeling. You left this on the bus. Get it at the place with the experts to get you the right gear. Office depot officemax. Gear up for school. Gear up for great. A major expansion of the suez canal was opened in egypt this week. The project surrounded by big expectations. Hadly gamble is live in cairo where its currently 106 degrees fahrenheit. Welcome to the show. Reporter thanks. Essentially these people are calling it their gift to the world. 22 miles of canal at a whopping cost of 8. 5 billion. Basically they had to move about 200 pyramids of dirt to get this done. Theyve also spent big bucks on promoting this new suez canal. You have the ability now to go both directions on this canal where before you had a lot of waiting time because you couldnt go both directions at the same time. A big change for the suez canal. They spent 30 million promoting the opening of this canal yesterday. Were talking about pomp and circumstance. Were talking about opera and people singing and military dress up in uniforms. A lot of pomp and circumstance surrounding this extremely exciting occasion for them. Also some dignitaries, some absent, a major figure from the u. S. Government as well. And are they going to get the kind of revenue theyre hoping for . Theyre hoping to make 13. 5 billion a year in a few years. Thats doubling what they make now. Its an open ended question if they can achieve that goal. Unbelievable story. Infrastructure, it has everything. Thank you very much. In cairo. When we come back, an exclusive interview from january hatzius. Well find out what the jobs number means for our economy. D. D. Thats that new gear feeling. Get this High Performance laptop bundle for only 399. Office depot officemax. Gear up for school. Gear up for great. Dentist appointment when my teeth are ready . Can it tell the doctor how long you have to wear this thing . Can it tell the Flight Attendant to please not wake me this time . The answer is yes, it can. So, the question your customers are really asking is, can your business deliver . Heres your news update at this hour. New York Democratic candidate, Charles Schumer saying he opposes the nuclear deal with iran. He says its a real risk that theyre pursue the nefarious goals is to great. And kerri saying the proposed and a mine waste fill spewed about 1 million gallons of orange colored sludge into a colorado creek. The mine releasing the waste and Officials Say Drinking Water is not affected. North korea saying its creating it own time zone to mark the 70th anniversary of freedom from japanese rule. It will move back the clocks to create their own time. Thats your news update for that hour. Back to you. Back to the news of the morning. The july employment report coming in line with expectations. We have the chief economist with goldman sachs. You got that number right this time. Your reaction to the number . Only a third of whats the fourth tier kind of stuff. There were a few things here and there but not worth spending a lot of time on. Hours were a little stronger. Average Hourly Earnings were a touch weaker and Household Employment was a little soft. These are very small deviations, and the trend seems to indicate that we get unemployment with a forehandl by the end of the year. Do you agree . With a four handle in front of it. I dont think well be as low as that but eventually it will be below five. For me, thats 2016. You are the interview of the day here because youll demonstrate so many things you. You moved your call to say wed only get a rate hike in december a couple of months ago. Virtually everyone on, i think they probably think well get a rate rise in december. Youre doubling down on that, the december call. We havent made any changes in that call. Its based on our impression that when we look at where the center of the committee is, where the leadership is, that th their baseline has been a december hike as of the june meeting and some of the speeches in early july and we havent really seen anything either in the data or in the communication that has changed that. So we havent made any change because theres been, for us, no reason to change. I think the markets view is that a big e change has occurred in terms of the communication in last weeks statement and in some of the speeches this week. Own what lockhart said . Thats right. Thats the markets view, but we would say it really depends on the leadership and we havent seen that kind of thing. Everybody made a big deal of some. Some further improvement. You dont think this is that . Its hard to say. It might be, and it might be after the next employment report but i think one important thing to remember is that there are two criteria. Its not just one cry tier yo. The other is reasonable confide confidence on inflation. And if anything, the confidence on it getting back to 2 has diminished or not increased. In the Statement Last week they said theyre closely monitoring the inflation situation. Thats the kind of language that normally doesnt set you up for an imminent rate hike. Does it matter if its settlement or december if we get 25 basis points before the end of the year, we get it. I dont think its a huge issue from the perspective of the longer term. I mean, especially if you could be sure that there would be a hike either in settlement or in december. It wouldnt make that much of a difference. Now, as you go through the remainder of the year, though, if you dont get a hike in september, you probably cant be sure that its december. So from a shortage of perspective, it will make a difference and you wouldnt want to overstate the importance of it. It does matter that you would fit in two rate hikes by the end of the year. Thats the conversation. And if the majority of the market thinks they move in september but they delay, a, thats arguably a monetary loosening for some people. And secondly they could argue the fed is behind the curve. It also might make the hiking easier further down the line. There are implications. There are some implications, as i said, i think there are some implications but i would also agree with david that its not earth shattering. What is more important as the fed has said, repeatedly, is the overall path and the overall approach to monetary normalization, and so you do want to keep it in perspective, although those of us who care about each step along the way, of course, will spend a lot of time on it. Thats quite normal, i think. Goldman has been in the middle of this ongoing debate about productive and to what degree gdp is being accurately counted. Can you explain it . One side of the argument is the productivity numbers have been bad so the trend is slowing sharply. Our view is that the published numbers dont tell the entire story because gdp is becoming harder and harder to measure, and in particular, quality adjusted prices in the tech sector are becoming harder and harder to measure. For example. For Example Software and Internet Access. You look at the price of Internet Access being recorded in the data and thats unchanged for the last ten year but an hour of Internet Access now is a very different product in our view from ten years ago. Faster connection and a lot more to do with that one hour, but thats something that doesnt really show up in the data. So then the take away is in your view gdp is being undercounted in the end . Yes. Real gdp we think is being underaccounted. Nom mall gdp we think is broadly right. The translation to real gdp we think is problem attic. Dollar index seeing something they havent seen since april. If we see another move up, does that impact your forecasts . I think its an important issue already. Its one argument for waiting a little longer. If you look at the dollar and the financial markets, theyve already done the sort of things that you would normally expect on the back of a monetary tightening and that basically means theres less need to be hasty in delivering that monetary tightening. And if the dollar were to move further, that would strengthen that view. Appreciate you joining us. When we come back, recodes kara swisher will join us live with her take on last nights debate and where she thinks some of the media stocks are headed from here. Back in a moment. For an unsanctioned selfie. Thats that new gear feeling. Get this High Performance laptop bundle for only 399. Office depot officemax. Gear up for school. Gear up for great. Go to ziprecruiter. Com and post your job to over one hundred of the webs leading job boards with a single click. Then simply select the best candidates from one easy to review list. And now you can use zip recruiter for free. Go to ziprecruiter. Com. Today on trading nations, were looking at the most shorted stocks in the market and guess what, the shorts have been right. Most names have gotten crushed. Which ones might fall and which ones might bounce back. More squawk on the street straight ahead. Every Auto Insurance policy has a number. But not every Insurance Company understands the life behind it. Those who have served our nation. Have earned the very best service in return. Usaa. We know what it means to serve. Get an Auto Insurance quote and see why 92 of our members plan to stay for life. It is jobs day here. Lets kick into the Santelli Exchange and see the seasonality aspects of what we need to know. Reporter we have a big crowd gathered around because my guest today, fascinating man. Professor, thank you for taking the time today on this unemployment friday. My pleasure. Reporter all right. Were going to start out with a little bit of a story. When i was a kid or maybe when you were a kid, we were play baseball in the schoolyard and pick teams and then there were people who werent very good, it was always the talented ones that were picked first. When i hear the notion that one of the issues in front of the fed is that were getting so close to full employment. I think of those days. The skill labor might be used up. Theres still a lot of people that are not picked. Can you comment on that metaphor, sir . Yes. Its a very good one. Youre exactly right. The Unemployment Rate officially is about 5. 3 . The Unemployment Rate on a large erer measured basis which is really a kind of a nonemployment rate which is what we should be talking act is over 10 . It remains over 10 , and beyond that, there is a reserve army of the nonemployed so that the American Labor market is very much looser than that Unemployment Rate suggestions. Im glad you brought up u six. I will acknowledge there has been improvement. I will contend that the government and fed and the centralbacks have come up with a six and a half and seven year cure for a flu. Its come down to the lowest level, but it is still over 10 . Switch gears. When we look at the numbers on headline nonfarm, when i used to be a trader youd get 375, 210, 490, 230. Where is the variance. These numbers are on a narrow range. Any notion of why that is that you can share with our audience in. This particular report is a very, what should i say, even kind of report. Its not a good report. We lost about 1. 1 million jobs last month. We have adjusted that by the seasonal adjustment to an increase of about 215,000. We know the seasonal adjustment figures are not good and, therefore, we probably created almost no jobs last month. The American Economy is treading water. Where the variance has gone, im not clear and were all trying to figure that out but the economy is not in strong shape. Its probably on the edge of a recession. It would be a very bad time to take policy measures intended to slow the economic recovery, and so thats where i think we are. Reporter professor, very enlightening and very interesting. Thanks for taking the time. Next time were together, i would like to talk about all the gdp revisions. Thanks again. Now lets go back to the squawk on the street gang and see what their thoughts are on jobs number. In the meantime, Cyber Attacks are a multibillion dollar problem and the workers and workers who help firms defend themselves are in high demand. Mary thompson joins us in virginia with more. Reporter good morning. A leader in security, semantics employees help companies around the globe pild and maintain their defenses. They say their focus on security helps it to attract top talent. Weve come to find that there is a work force gap. 300,000 jobs we fill will not be fulfilled based off the current work force availability. Being a cyber specialist requires more than technical know how. An understanding of the industry and certifications that may take up to five years achieved all desired in a candidate, creating a challenge. While colleges are taking notice, semantic needs to do more. The good news is the universities are coming with us to help build that capability on campus. Its early stages. Were going to have to look at ways to build that capability and home grow it if you will, to bring it into the work force. Reporter now, along with developing talent in india, here at home the company has partnered with a cyber career connection. Its Training High School graduates and ged holders in the basics of cyber security. They take courses in things like Ethical Hacking and security plus. So far 31 graduates 31 people have graduated from the program. Some are going onto get a higher degree and coming up on power lunch, well meet one of the graduates. He is a critical part of a pipeline of workers that they are trying to build. In more ways than one. Up next on the program, from wall street to nfl agent to reality tv. The agent who remits sopresentsf the biggest names in football is part of tracking real life jerry mcwires. Well be right back. Were not rich, but we want to be able to enjoy our retirement. Futureadvisor has identified 9 best practices to help you retire sooner and with more money i was leaving a lot of money on the table. Futureadvisor uses awardwinning technology to give you investment insights once only available to millionaires. Just link your accounts and futureadvisor will show you how youre doing and where to improve. Its like our own team of Financial Advisors 247. We finally have a plan we feel good about. Get an instant assessment of your portfolio and a plan to fix it, for free at futureadvisor. Com. But it is not the device that is mobile, it is you. Real madrid have about 450 million fans. Were trying to give them all the feeling of being at the stadium. The microsoft cloud gives us the scalability to communicate exactly the content that people want to see. It will help people connect to their passion of living real madrid. From wall street banker to nfl sports agent, sonny shaw is the star of a new series on the esquire network, called the agent it follows nfl sports agents and their clients as they navigate what is a relatively cutthroat world of professional football. Sonny joins us now. More a documentary than a reality show, correct . Yes, thanks for having me. The day in, day out of what it takes to be an agent, following you as you recruit and negotiate and sign. Its an inside look at what we do for our clients of the. Not just about the contract negotiations, its all about the other things as well. Theres a wide range of services that we offer our clients and it covers all of those things. Anything crazy that you have to end up doing for your clients, well be surprised to see . I think youll be surprised, its a good show. Its real life. And you know, i found myself doing all types of stuff for my players. From helping to negotiate, planning weddings and bachelor parties to sending gifts, to negotiating contracts. I mean you name it, we try to handle it for our players. I always wonder when youre dealing with people like this, obviously they are supposed to have college educations, although that comes into question sometimes, whats the level of sophistication among some of your clients, when it comes to things like dealing with life, whether its finances, finding a place to live or anything like that . It varies by client. I think you know. It depends on who you get in terms of you know, what how they were brought up. Their back grounds and some of the guys they need a little bit more handholding than others. And so you know i pride myself on that, trying to be there every step of the way for my clients and trying to help them avoid bad decisions. What do you think of the tom brady scandal . What do people say . Its, i think im tired of hearing about it. I wish it was handled a little differently on both sides. Im just hopeful that the nfl and the nfl p. A. Can come to terms and hopefully get it out of the media. In many senses, i guess they didnt have a choice to suspend him, given what happened to the cell phone. Yes, exactly. That was the suggestion from another agent that was on the show. I think a fine would have been a better way to do this. But you were a banker originally. Which do you like more, doing this or being a banker . I love my time on wall street i had a great experience at a numb of different banks. And those experiences have taught me to be a better agent. I love what i do. Like what . The analytical nature of the job. Being able to react quickly on your feet. Being resourceful. And just working in a team atmosphere, all of those things i think helped make me a better agent. You worry longterm sports programming numbers may start coming down. I dont know if you saw ha happened with espn and the numbers start coming down in terms of what theyre willing to pay for the contracts and youre negotiating at less leverage . Maybe so, maybe so. Not yet, though. Not yet. Not any time soon. If its any consolation, if it comes to that, you wont be on your own. No, thats true. You and i will be out selling smoothies. Good luck with the show, thank you. Thanks for having me. Lets send it over to jon fortt and see whats on squawk alley in what are we, seven minutes time. Debate how did it play out in social media . We will take a look at that. Also media stock stabilizing today after the big fall earlier in the week. Viacom in particular, well look at whats next for them. Finally jane wells talks to john mcafee about his latest brush with the law. All that and more coming up. I built my business with passion. But i keep it growing by making every dollar count. Thats why i have the spark cash card from capital one. I earn unlimited 2 cash back on everything i buy for my studio. And that unlimited 2 cash back from spark means thousands of dollars each year going back into my business. Thats huge for my bottom line. Whats in your wallet . Nbut your dell 2in1 laptoped gives you the spunk for an unsanctioned selfie. Thats that new gear feeling. Get this High Performance laptop bundle for only 399. Office depot officemax. Gear up for school. Gear up for great. In the us, three in ten College Students drop out. But how can you spot whos at risk . The one who lives far from campus . The one who works the night shift . The one with new responsibilities . One thing cant tell you, but the right combination can. Universities are using ibm analytics to understand pressures in and out of the classroom some expect to cut dropout rates by twentyfive percent. Ibm analytics is working to make education smarter every day. So, the july jobs numbers are in. The u. S. Economy added 215,000 jobs last month. Which of our viewers managed to nail the number . Its itu kgongwane. Most people dont realize this show is broadcast internationally and itu joins us from johannesburg, south africa where youre trading stocks there, itume . Yes, i trade stocks. And securities. Okay, so what was your guess . How close did you come . I was under, 215k, nonforms payroll number that came out today. Nonfarms. Its very interesting number in itself that its one of the key Economic Indicators that we are all attuned to as traders, as a guidance to the timing of the fed rate hike. So given that its been unwieldy, you had your trade numbers, and yesterday you had your drop numbers and all looking for at least one. And using that Economic Indicators, and the consensus, was that it would be 215 to 222. And given that the jobless claims, i could sort of like predict in a way that would have marginal gains. And put it in a range. Itume the economy would still in a little bit its been, we have to dash because weve got another show starting now. Its been great to me you. Itume kgongwame joining us from johannesburg. I think thats probably it, time for squawk alley, over to you, carl. Good morning, it is 11 00 a. M. At the quicken loans arena in cleveland, ohio, almost 11 00 a. M. On wall street and squawk alley is live. Happy friday morning, welcome to squawk alley, joining us, jon steinberg, ceo of the daily mail and Kayla Tausche is still out. Jon fortt is here. The first republican debate, surprise surprise, donald trump front and center. This country right now owes 19 trillion, and they need somebody like me to straighten out that mess. Youve called women you dont like fat