Transcripts For CNBC Squawk Alley 20170203

It but you gotta learn how to reach up and grab it cause everybody wants some love shooting from the stars abo aboabov above heartbreak is more than i can take, i can never get enough if you need it, you should show it welcome to squawk alley for a friday. Jon fortt, Kayla Tausche and myself at post 9. A remarkable day in business news. At this hour, the president , as you know by now, is meeting with members of his Strategic Policy forum. In the room right now, blackstones Stephen Schwarzman, jpmorgans jamie dimon, elon musk, mary barra on the right. Dows up 168 on a jobs friday. We have this meeting covered from all angles. Andrew ross sorkin and eamon javers, john harwood. It has been a remarkable morning with some of the nations largest ceos here with the president , sitting down just an hour ago. They will be in there for about another hour. On the docket in terms of the agenda regulation, taxes, infrastructure, women in the workplace. We should mention, ivanka trump is in that room along with the Vice President and Jared Kushner and so many of the other parts of the administration. We want to show you a quick clip of what donald trump had to say about the jobs number this morning and what that says about the economy. 227,000 jobs. Great spirit in the country right now. So were very happy about that. I think that its going to continue big league. Were bringing back jobs. Were bringing down your taxes. Were getting rid of your regulations, and i think its going to be some very, very exciting times ahead. Were doing it and were going to be coming up with a tax bill very soon, a Health Care Bill even sooner, and its really working out. Reporter of course, one of the issues that has not been mentioned he referenced it, actually, briefly, which was immigration and the thash we just talked about. Travis kalanick, who dropped out of this panel. A number of ceos privately have told me and elon musk has publicly told the world that he plans to talk about immigration at this meeting and address it head on. We will find out perhaps a little bit later how head on they address it and how they articulate that message and how the president received it, given some of the concerns that the Business Community has about that particular issue. And of course, everybodys trying to find what it means for certain people to sit next to the president. Of course, Stephen Schwarzman put this group together. You see mary barra on the other side. A number of different interesting conversations happening before the meeting began. But it is a remarkable day in terms of just the disposition that he has had towards them and they have had towards him. There is still a sense, despite all of the commotion and controversy this week on the immigration issue, a sense of optimism, and a number of ceos who privately told me last night, when you get in the room with him, he does want to listen to you. Youre seeing a pool shot of this now, but the cameras are no longer there. And so, we will find out as much as we can, at least, later about what took place. But he is in listen mode, or at least thats the expectation. I will send it back to you, carl. Andrew, were going to come back to you in a moment. Eamon javers is watching the arrivals of the ceos all morning long, and well see if we get some departures. Hey, eamon. Reporter yeah, well see. Well be on the driveway again, carl. But if you listen to this preamble by the president of the United States right now, important what he didnt say as well as what he did say. Andrew mentioned Travis Kalanick of uber pulling out in rather dramatic fashion from this event last night. The president did not talk about that, but he did emphasize to the group how elite this group is, how selective this group is, and said several times just how many people have been contacting him trying to get into this meeting. So, the president here intends to explain that if one person is dropping out, there are certainly plenty of others who could join the conversation. And then one style point im noticing just watching this tape as the president works the room, just how many of the ceos are wearing those bright red donald trump ties. You see Stephen Schwarzman sitting next to the president wearing that tie. I saw at least one other one in the room. And i can tell you, guys, in the trump era here in washington, those bright red ties, Donald Trumps signature, have become very fashionable here just in the past two weeks, carl. Eamon, thank you for that. Were all wearing red for some other reasons today, Womens Health related. Right. John harwoods in washington. John, what is the story this morning from your viewpoint . Well, i think the administration is moving from the points of emphasis in the first week to a different message addressing the Business Community more directly and more congenially in the second week, but theres a long way to go in figuring out how this relationship is going to work, because as my colleagues were just saying, there are significant elements of collision between portions of Donald Trumps message that goes to the working class base that he has in those industrial states that made him the president of the United States and those of these wall street and Business Leaders. When you talk about the immigration issue, as andrew mentioned, elon musk and others are going to bring that up with the president , but there are other elements that were going to see beyond the immigration order. Jeff sessions, who is the president s choice to be attorney general, has talked about reducing the number of h1b visas, for example. Thats going to heighten that issue. And when we see the repeal and replacement of obamacare, what is that going to do to the Insurance Market, for example, the individual Insurance Market . Could be okay if managed correctly, but theres a lot of concern among republicans about that. So, how when the rubber meets the road on actual changes the administrations going to make deregulation, taxes and other issues thats where this relationship is really going to be tested. Were going to find out what its made of. Big part of the messaging today, john. Thank you very much for that, our john harwood. With Market Reaction to all this, the meeting, the jobs number and more, mike santoli is here at post 9. Andrews still with us at the white house. Session highs, mike. How much of this can we tie a line to in d. C. . I do think after the visuals, after this meeting, i do think that the market got a little bit of reassurance. I think the optics, the body language are good. Gary cone on the white house lawn saying were going to get it done is probably reassuring. I dont think thats what the context is very strong jobs number. The fed basically going to stay maybe behind the curve a little bit, let it run hot and let the kids play and theyll get aggressive. So, i think thats whats going on. Altogether, though, i think these are the gestures out of washington that maybe investors have been waiting to see. Essentially, centrist ceos with a literal and figurative seat at the table to try to figure out the more important issues. Andrew, but the point has been raised multiple times this morning that the items that trump as president has moved from executive orders and from his perch in the oval office are not those that the ceos have been in favor of. Thats what his base has wanted. And im wondering how likely you think Corporate America believes that this president can have his cake and eat it, too, and please both of those groups. Look, they are going to try and youll see different arguments made in the room today on some of the issues that we just showed on the agenda, meaning there are going to be competing interests. A lot of these ceos have been talking to each other throughout the week, by the way, about how to come together and offer a consensus view, if you will, so that they can present the president with sort of a unified front on some of these issues. But you have to imagine that some of these companies are coming at these issues from such different places. So, on trade, theres going to be Certain Companies in that room that have one position. I mentioned earlier, and well have Stephen Schwarzman on this show later his largest investor is china, and that represents thats a huge part of his business. And so, hes thinking about these things in certain ways. You have other people, whether it be Doug Mcmillan of walmart, when it comes to what an import tax would ultimately mean. So, i think everybodys looking at these issues in different ways. And again, how that gets articulated in the room i think is going to be very, very important, and i want to i hope that when we get a chance to speak to some of these leaders, when they do come out from this meeting, we can get a better understanding of where the different lines were drawn. Mike, some notsohot earnings last night, though, as a backdrop to all of this as well. Maybe the jobs number drumming that up. But amazon in particular down 3 this morning. Currency among the culprits, you know, International Revenues not coming in as expected, little echoes of facebook as well, some Capital Investment expected. Is that going to play more of a role, do you think, in the markets Going Forward after the perhaps euphoria after this number wears off . I think it is playing a role. I think that the earnings have been just good enough to kind of keep the market where it is. We were up 10 in 12 weeks coming into earnings season, so i feel like you priced in some pretty good numbers. And i do think whats interesting is the market is up today when bond yields are down, and thats not been the rule. Youve wanted to see basically this reflation story. I think one of the reasons, by the way, is banks are flying, and its because of dodd frank perhaps being diluted, not because of anything happening with rates. So i do think earnings have done just enough i think to keep the market where it is, but not giving you impetus to haase it higher. Goldman accounting for about a third of the dows gain this morning. Michael, thank you. Andrew ross sorkin in washington, thanks. Reuters running with headlines regarding lockheed and the f35. Sue herera has that. Indeed i do, carl. Thank you. The department of defense and lockheed, according to reuters, are set to announce a deal worth about 8. 5 billion for 90 f35 jets. Thats according to sources familiar with that deal. The deal for the tenth batch of the Stealth Fighter aircraft would bring the price per jet down to below 95 million for the first time, compared to 102 million in the previous batch, apparently saving the pentagon, according to reuters, more than 700 million. As you probably recall, the prest was very critical of the f35 jet in terms of costs and was very vocal about it. Well, the cost is now lower than it was before, 95 million for the first time, compared to 102 million. Carl, back to you. All right, sue. Thank you very much for that. As we go to break, dow is up 179, session highs. By the way, s p hasnt had a threeday winning streak since early december and is on pace to do that today. Earlier in the week we were saying dow is on track for the worst week in three months. Nowhere near true anymore. In fact, probably at this point, maybe one of the worst weeks of this year so far. Yeah, but much has been made about the dichotomy between whats happening in washington, confusion, disarray, trying to get a better sense of the agenda, whereas on wall street, low vix, new highs, over 20,000 on the dow even still. So, perhaps there is some divergence between a prior link between washington and wall street, as we were just talking about, and whats going on right now. And we mentioned it earlier, but one ceo conspicuously absent from the meeting with the president , ubers ceo, Travis Kalanick, dropping out of the forum. We are live at uber headquarters in san francisco. Deirdre . Reporter hey, guys, thats right, likely a different tone here, especially as people come in to work at the headquarters behind me, because it wasnt just uber customers and uber drivers that were upset with Travis Kalanicks involvement and the companys involvement with the new administration, but it was also employees. They were upset that ubers become a target of growing tensions between tech and trump. We have obtained an email that Travis Kalanick sent to employees yesterday morning. In it he wrote there are many ways we will continue to advocate for just change on immigration, but staying on the council was going to get in the way of that. To run you through some of the events of the past few weeks that uber has had to face. On Inauguration Day there was a protest at the office right behind me, a human blockade across the doors. There was also the delete uber campaign, of course, and a highlevel executive at the company sent an internal email that leaked comparing donald trump to chinas mao zedong. There were also protests that were scheduled for yesterday. So, ultimately, ubers ceo decided it wasnt worth the trouble and he resigned from the council. This raises some important questions Going Forward that i know you guys have been touching on today, but particularly what does it mean for Silicon Valley and the issues that they care about, that tech cares about, like immigration and the h1 Work Visa Program . What does it mean for that now that Silicon Valley may have one less seat at table . What does it mean for the other tech ceos at the table, such as ibms Ginni Rometty and teslas elon musk . Guys, back to you. Deirdre, im curious, elon musk still in the room. Uber has been the target of lots of criticism over years over some of kalanicks personality, its policies and treatment of competitors. Might some of this be wrapped up in that as well, because one would think elon musk would be just as vulnerable to this sort of criticism, but theres no, you know, trade in your tesla hashtag trending. Reporter yeah, thats what many people are saying here, is that perhaps uber didnt do anything worse than any of the other ceos in terms of posing up to the new Administration Given all the turmoil over immigration. But as you say, theyve had a rough history with public relations. Travis kalanick has been very outspoken. The companys Business Practices have been under fire. The way they handled the delete uber campaign, it was a little bit misunderstood, because what happened there was when the taxi when taxi drivers were striking at jfk, uber simply removed bear sergey. There was really no way for the catch to come up win fraeg that situation, but they found themselves a target. And as you say, that may have been because of Business Practices in the past, but the company certainly trying to reform itself, and this may be part of it. But it also has to do with the fact that its a very visible tech company that was on the council with the new administration. Deirdre bosa at uber headquarters, thank you so much for that. When we come back, why the ceo of godaddy says the entire u. S. Economy is at stake if the president removed the visa program. Snapchat, the parent filing papers for its ipo. Well dig into those new details. And later on, well get back to the white house when that meeting ends with comments from the ceos inside, when squawk alley comes right back. Announcer post 9 is sponsored by fidelity investments, innovative ideas for serious investors. Ofop adas thstock n wt yo t whyovest w wh ow only s asbvn lpouade. Er tetr p rootentits. Li stor alw cketbats tm sp whtotentits. Li stortalkurom at t valtse wos . That is the president earlier this morning meeting with ceos, promising big changes on tax reform and health care. His executive draft order, though, on work visas drawing the eyre of Silicon Valley leaders, including our next guest. Blake irving is the ceo of godaddy. You wrote on linkedin about this issue, which is the elephant in the room for many of the tech ceos that are there with the president. And im just wondering, you say that the entire u. S. Economy is at stake. Tell us where your heads at. Well, look, certainly for technical workers. So, if you actually look at the stats today, there are 545,000 technical jobs right now that are unfilled. And you know, i think the h1b visa is misunderstood to a great deal because folks will say, well, thats about cheap labor. The fact is that they actually make 20 more than workers in america for the same jobs today. And frankly, we do not produce enough technically qualified candidates in this country and our educational system does not produce these candidates from k12, but all of our University Systems actually the best university in the system produces tons of qualified candidates. When theyre done with their university, we actually send them back. So china or india, were sending folks back to their countries. So when folks say theres a suddenly con valley in china, theres a Silicon Valley in india, its because were actually educating them in our University System today. We did what 85,000 h1b visas last year. 25,000 of those went to masters graduates in the United States. Right. Were not doing that with our own Education System today. So weve got to get these qualified workers from somewhere. And to the h1b visa program is essential for bringing qualified Technical Capability into the country. And frankly, without it, we will lose our ability to compete and innovate with other countries. Its just that simple. Goldman sachs this morning tried to put some figures on how disproportionately tech relies on h1b visas versus the rest of the economy. The share of the u. S. Labor force that has an h1kbnk visa is less than 1 , but the share of tech workers with one is about 13 . Some say its incumbent upon the Tech Community and Tech Companies to train workers to be more technically skilled to fill the jobs internally. Why not . Look, the folks that are showing up at universities today have gone through an entire Education System from kindergarten all the way up to their senior in high school before they go to university. You cant take an 18month Training Program and produce a Machine Learning scientist. Theyve got to be incredibly good at math, incredibly good at science or physics. Theres a lot of learning blake . Yeah . Its jon. Hey, jon. I take some issue with you saying that this issue is simple. Good morning. Great to see you. Good to see you. Not all of these h1b visas are going to extremely highskilled technical workers. Many are going to i. T. Workers who are working at data centers, job centers, not talking about artificial intelligence. There is documented h1b visa abuse, but we seldom hear Silicon Valley leaders talking about that, talking about the need to address that. And i think its cost you guys some credibility. Why dont we hear more about h1b visa abuse and ideas from Silicon Valley on how to curb it . Look, theres always going to be some marginal group of folks who are going to abuse the system. Its a tiny sliver, jon. Its just tiny. You know, frankly, the folks that ive worked with over 30 years in tech that have come into the country on an h1b visa have really changed the way, you know, i think American Business functions today. What is it, 40 of the fortune 500 companies today were founded by immigrants or children of immigrants, and these are folks, many are guys who came in on h1b visas, leaders of companies today in the Tech Community. So the folks that say, look, its abused a lot, its just not right. There is a fraction of that. But again, most h1b visaholders make more than their counterpart. So, its not a moneysaving thing. It is a technical worker availability, and we just dont have them. Blake, as you try to figure out how to operate a company in the face of this policy, you have offices in toronto, in mexico city. Are you looking at ways to move some of your immigrant employees to those offices . Whats on the table . No, were not today. Like most of our technical employees are in the United States today. So our engineering facilities are in san francisco, sunnyvale, seattle, cambridge, massachusetts, cedar rapids, iowa, and here in phoenix, in scottsdale, arizona. So, most of our guys are here. We have a little bit outside of the country, but not a ton. In europe we acquired a company in december for about 1. 8 billion, host europe group, and theyve got a great technical staff there. But again, this isnt about trying to export jobs. And i think folks get the h1b confused with trying to actually farm out work to lowcost labor and other markets, and thats just not the case. Blake, really quick, reports that canadas making overtures, saying hey, were right here, guys, if you need operational space. Is that being overstated . Yeah, i think so. I mean, you know, come on, i think there was a time where texas was trying recruit companies from arizona because they were just trying to make a play to get more businesses there. This happens all the time. Its become a lightning rod issue. It has. And this conversation is nowhere near done. Blake, we appreciate your perspective this morning. Thanks a bunch, guys. When we come back, a lot more from the president s strategic and policy forum meeting. Well talk to carla hills, former u. S. Trade rep and former lead negotiator for nafta. Best day for the dow since december 7th. Squawk alleys back in a minute. Le le ju wto t inme tst. Dofoevernei elh ile say. Forgyorencctry the u. S. Economy adding 227,000 jobs in january, topping estimates, calling for just 175,000 new jobs. Markets reacting this morning by adding tripledigit gains on the dow, currently up 163. Nasdaq and s p also in the green. Steve liesman is at headquarters with more. Kayla, first of all, it would have been a better number. Our cnbc number was 193,000, but this strong jobs report had a very strange Market Reaction. Stocks surged on the news, but bonds rallied as well. And the apparent reason was the weak job growth. Take a look at the numbers. 227,000. 175,000 was the estimate, 193,000 the adjusted estimate after adp on friday. Unemployment rate rising as people came into the workforce. Participation rate rising 62. 9 , but average Hourly Earnings disappointing. Heres the yield. You can see it just cratered around the time the number came out, then also didnt pick up very much with the ism number, that Stronger Services number than expected. Heres where the jobs were, construction. Look at the top to the bottom, construction, leisure hospitality. There could about have not Better Weather in there, so that might have been one factor. Retail 40,000 and professional Business Services 39,000. And temporary help up 15,000. All this dropping a probability of a march hike to just about 4 . It had been around 17 before the number. John riley from rdq thinks the market is long and priced out the size of the march hike and many economists dont think the u. S. Economy will sustain job growth at this level, north of 250,000. They think the sustainable rate, if were lucky, is around 150,000 to 170,000. Carl . Steve, a busy day for you and for all of us. Thank you so much. Pleasure. Our steve liesman. Lets get to the close in europe. Theyll try to get out of the week with green arrows. Seemas at headquarters. Hey, carl. We do have green arrows. A positive session in europe on this friday, this as the eu summit kicks off in malta. And while leaders there typically talk about the internal crises facing europe, like populism and the greek crisis, top of the agenda, according to some strategists, is donald trump. Citi warning today in a note that President Trumps antitrade and antieu rhetoric could soon manifest itself in actions affecting europe politically and economically. Analysts there go on to say that trumps interventions could point to a desire to weaken the european union, and this departure from this traditional policy could benefit countries like britain. But again, a positive session across europe. You can see the ftse 100 up about 0. 8 . Miners and industrial metal players are falling today on that disappointing manufacturing data that we got out from china. Plus, a surprised increase in shortterm rates overnight in china. You can see glencore, Anglo American and bhp billiton all down, but a sharp contrast in what weve seen this year as the promise of more Infrastructure Spending and uptick of Commodity Prices has helped these stocks gain more than 11 so far in 2017, as you can see in glencore and Anglo American shares year to date. Now, while we have seen a rally in u. S. Financials today, european banks moving the opposite way, at least some of them. Take a look at banco popular, reporting a loss after Deutsche Bank reported disappointing results. A lot of investors say valuationwise, they look attractive, but we have to watch how earnings pan out over the next couple weeks. Jon, back to you. Thank you, seema. Still to come, a lot going on for a friday in washington as the president meets ceos from his strategic and policy forum. What it means for trade, business and your money with former nafta negotiator carla hills next, plus the new tech ipo filing. Well dig into snap inc. Good morning, everyone. Im sue herera. Here is your cnbc news update at this hour. Mexican drug lord El Chapo Guzman was transported from a highsecurity manhattan jail cell to a brooklyn courtroom by federal marshals in a motorcade this morning. He is accused of running a massive Drug Trafficking syndicate that laundered billions of dollars. The house repealing a rule put forth in the final days of the Obama Administration that limited emissions of Greenhouse Gas methane from oil and gas drilling on federal lands. It was part of president obamas efforts to curb climate change. The senate is expected to vote next on repealing the rule. Bmw recalling more than 230,000 cars and suvs in the u. S. To replace potentially dangerous takata airbag filters. The recall involves vehicles from the model years 2000 through 2003. And fidelity says the average 401 k balance hit a record high of 92,500 at the end of 2016. Thats a 4,300 increase from 2015. Fidelity points to rising stock prices and increasing contributions for that rise. That one surprised me. Thats the news update for this hour. Back downtown to squawk alley. Carl, back to you. Sue, thank you so much. Our sue herera. The president meeting with top Business Leaders at this hour. One of the topics at the top of the agenda is trade. Mr. Trump making his first extended comments about nafta yesterday at the white house, reiterating his dislike of the free trade agreement. I have very serious concerns about nafta. Naftas been a catastrophe for our country. Its been a catastrophe for our workers and our jobs and our companies. Theyre leaving our country. I want to change it and maybe redo it. Maybe we do a new nafta and we put an extra f in the term nafta. You know what the f is for, right . Free and fair trade. Not just free trade, free and fair trade, because its very unfair. Joining us this morning, carla hills is the former u. S. Trade rep that helped craft nafta. Madam secretary, good to have you with us. Good morning to you. Good morning and its a pleasure to join you. The metaphors been brought up again and again. Youve got a 23yearold wardrobe, youre going to refresh it somehow. Is that appropriate when talking about nafta . I think we could build on the nafta. You know, it was negotiated, as you say, 23 years ago. It was an advance then. We opened up the agricultural market. It had never been done on any trade agreement. Protected property, eliminated all industrial tariffs between our two nations and had good rules for enforcement. But since the early 90s, weve had digital trade develop, weve had energy put on the table because mexico has open up its energy market. So yes, we could refresh and add to the nafta and make it even better. Ambassador, when i hear you talk about nafta and hear how President Trump talks about it, its almost like youre talking about two completely different things. I believe in an interview a couple years ago you talked about the impact this way intraregional trade up 400 , our largest trading partner, now canada, second largest export market is mexico. We sell more to mexico than the rest of latin america. And to the brics. Granted, these numbers are 2 1 2 years ago. When you talked then about expanding on nafta, you were talking about doing tpp, which is now dead. What is your feeling around the way we are talking about intraregional trade and even trade with asia right now and where thats likely to lead us . Im a great believer in opening up markets, and particularly so because weve become even more globalized than when i served. The reason that the United States is one of the most competitive markets in the world is because it can secure the widget that it needs to be competitive and outcompete others. And trade has raised our gdp by more than 1 trillion since world war ii. We dont want to throw that away. North america is one of the most competitive regions in the world, but it could be more so. And the Transpacific Partnership gave us an opportunity to upgrade the nafta. Im sorry that we lost that chance, but you cant look backwards. Look forward. And we should be continuing to work with our second largest export destination to add on to the nafta and make it more effective. In the meantime, though, ambassador, we are trying familiarize ourselves with the procedure around nafta, given that this is pretty much uncharted territory. We know that yesterday mexico started a 90day countdown to consult with its own Business Community about whats important for it to bring to the negotiating table. How does that work and what does that say about exactly when we could see the white house pursue a new deal on this . Well, the agreement itself says that any party can pull out in six months. We certainly can add on. The executive branch will have to work with the Congressional Branch because that is required. You cant change an agreement without having collaboration with our legislators who have authority under our constitution for tariffs and trade. But there are things i mean, im a big believer in upgrading the nafta. Boy, there are things we could do that would make it more modern for today. Carla hills on nafta. We hope youll come back. Thats a conversation that is going to continue. Our thanks to you. Great pleasure to join you. And Snapchat Parent Company snap inc. Filing papers for its ipo. The company says it generated more than 404 million in sales last year, up from just 59 million the year before. Snaps operating in the red, though. The company says it expects to go public as soon as march with a valuation between 20 and 25 billion. And kayla, one of the things in this filing that jumped out to me was their commitment to pay cloud 2 billion over the next five years. And i did some math. If they grow 33 a year for the next five years, theyll still be paying 40 of revenue to google. Considering in the digital market theyve got to compete with google and facebook for share, thats pretty interesting. People have been joking, what do they need all the cloud space for if the messages are supposed to disappear . But obviously, they have other needs at hand. Interestingly, we had reported on this show before that their revenue is expected to be roughly 350 million for the year, so they actually outpaced on the sales front what they had previously told investors. The company has also said expect 4 billion for fullyear 2017, but they say we may never be profitable. Theyre not giving investors any votes on the stock they may be buying, which many are up in arms about. T. Rowe price said weeks ago we generally dont favor proposals that carry Something Like that but were not planning to contest the fact that snapchat or snap inc. Is offering non voting shares. So certainly, people will be scratching their heads about this. There will be lots of questions on the road show by investors about exactly what their power is, what theyre buying into, and it seems the company feels theyre buying into a camera company. Thats how they define themselves. And the points been made again and again, spiegels willingness to zig while others are zagging. Whether thats doing portrait instead of landscape or vernsni california, instead of Silicon Valley. Hi, julia. Reporter venice, california, its usually sunny in southern california, but not today. Today has been pouring. Now, whats interesting at snapchats headquarters is not only is it in venice, california, where real estate is very expensive, but its not one big headquarters building. They have a number of buildings spread out throughout the city. The main one is behind me. We saw chief Strategy Officer imron khan come in, but its all over the city. The building with the cafeteria seems to be right in front of me. Weve seen people zigzag across the street all morning and there is a ton of security. We havent seen ceo evan stegall yet. In the companys risk factors, they point out its both a challenge and opportunity when it comes to rekrauting. Recruiting. They say their lower recruiting competition from other companies as well as providing an enticing location to live, though, with the rain not so much today, as well as disadvantaged, requiring employees to relocate. As for the company not having one main headquarters building, i have to pull up the fullscreen. They say this structure may prevent us from fostering positive employee morale and encouraging social interaction amongst our employees in different business units. So, people seem to be Walking Around and talking to each other, but very unusual at headquarters here. And carl, one of the things they point out, and julia as well, is brexit as a risk factor, which i thought was interesting. Speaking of offices, they say they planned to place a significant number of nonu. S. Employees in the uk, and given that the exact nature of how bre brexits going to happen is up in the air, they list that as a concern. A lot is up in the air right now. Julia boorstin, thanks to you, covering the snap ipo. Amazons under pressure, although off of the lows of the session. Well get details on that next. Rick santelli, what are you watching . A very interesting setup after the Employment Data. Bond prices are up, pushing yields down. Stocks are up solidly. Dollar index down a bit. Well talk about the split decision on the Employment Data after the break. Kn8 thclinl . At re uaroer tlo ela ou. Kn8 thclinl . At re uaroer tlo eeriver . I t ththhe2 s. Caho tedr. E fufu fiamps ne rhe ou im scott wapner. Coming up on the halftime report, with stocks soaring, a market watcher says dow 30,000 could be the next stop. Plus, several big names popping and dropping this hour after earnings. Our traders take their positions on amazon, amgen, visa, chipotle, visa and fireeye. And macys is soaring today on a buyout report. Well ask dana telsey if the reports are real and what it means for your money if youre in the retail space. Halftime report starts at noon. Of course, were expecting sorkin to have some ceo interviews as well. See you in a bit. Busy day, scott. Thanks. Lets get to the cme group in the meantime, check in with rick for the santelli exchange. Hey, rick. Good morning, carl, and thank you. Of course, we know the january employment report really was a split decision on many levels. If you looked at private payrolls, nonfarm headline payrolls, they werent bad, but i think the two big issues were that were bringing more workers into the labor force. The Labor Participation rate went up. The number of people in the pool that we beamed into the atmosphere that are considered unemployed or marginally attached that shrunk a little bit. Thats a really good thing. Wage side, whether it was year over year, month over month, that was definitely a bit of a disappointment. Maybe the most important issue of all is that when you have a week with a fed meeting and an employment report, i think it made stocks a little nervous, made bond yields touchier to the up side. A lot of this is just because were over the hurdle. Listen, folks, i want to get personal for a minute. I try not to comment about what is in the news all the time, but i have to tell you, ive seen a lot of negativity in recent day constant winner and overachiever and thats what the people who support him like the most. Yeah, theres some spin maybe and certain fact, okay, open to debate. But hes still out there, prove his naysayers wrong time after time. Some people are just jealous of somebody who is successful and has money. Throw a fashion model to the side, they get even more negative. You may not have wanted him in this role but hes there now and theres nothing anyone acan do about it. I know its going to get worse over the next several of days. But whether you luke it or not, tom brady is in the super bowl again. Carl, back to you. Yeah thats called misdirection right there, rick. Very nice. Thanks, rick santelli. Amazon missing on revenue in the most recent quarter. The retailer seas sales climbed 22 which is pretty good compared to last year. Just over 43 billion overall. But that was below the 44. 6 billion that analysts were expecting. International is especially tough for amazon because of a currency headwind that was bigger than expected. Sales from Cloud Business also missed. In that case, because of price cuts in the cloud. Seven price cuts will do that to you. It will be difficult to keep up. But you know, amazon doesnt misa lot. Its been up quite a bit. Still trading above 800 a share but a rare top line miss for them. Yeah. Well, i mean, people had expected that this race to the bottom in the cloud was eventually going to hurt their bottom line but they were going to buy a few quarters of better than expected profits. And now people are trying to parse just how much are they spending on this . Yeah. Operating income for them quarter, tends not to go up consecutively very often. So some of the sell side worries in advance well heeded. 160 hanging into a pretty tight range. Best jobs friday for the dow and s p since august 5th when that july number came out with a beat. Theres a look at the white house. Obviously a big day for ceos and banks, by the way. Banks leading the charge. Jpmorgan, Goldman Sachs up more than 2 now. Were keeping our eye on that. Goldman alone adding a third to the dows gains of 158. On a personal note you may have heard by now that kayla is moving to washington. Thats a view thats going to be very familiar. To cover the white house in washington, d. C. Of course kayla is a Founding Member of this program. Were going the miss her expertise on banks, on capital markets, but she is moving to what is probably the most exciting beat in the world right now. Youre going to be back often but we cant wait to see what you do. I would say goodbye but i dont think youre going to have any time to miss me at all. Well miss you sitting right here. I might argue with you about the most exciting beat in the world. Tech still has a lot to say as we were just talking about with snap. But, hey, youre right there in the running. Tech and washington are going to be butting heads. Im going to be here very often to say its bittersweet is an understatement. To have been here from the very beginning, alibaba ipo opening one market, rise in unicorn, its a lot. It does remain, we had this discussion this morning with faber, about the most vibrant part of our economy. The degree to which it is or isnt reflected in this council were watching today in washington, d. C. But that collision that you say, that you talk about today, look at news alone. Kalanick, right . Tesla, how theyre all interacting with this new administration. To have covered the banks for four years at a time when it was a White Collar Crime breet it was all regulation and sett settleme settlements. Now so historic for that being potentially rolled back and potentially in a few minutes time. We did get this for you, the picture of the three of us as we started this program. How long ago was it . That picture was just from how much do you think i could get for that on ebay . Yeah. I kid. I kid. Yes. Meanwhile, well keep our eye on the markets. Reminer to viewers, still waiting for some departures of the ceos as they leave the meeting with the president. We didnt get much on the way in. Eamon javers did his best putting microphones in the likes of Steve Schwartz man but perhaps reflections and readouts of what happened in the last couple of hours. Sure to impact the markets from here on out for sure. Mean tile, were getting earnings rolling p in gopro down 11 on a serious miss on the top and bottom and on guidance but still doing better than it was just a month ago. Stay close. I will. Ill miss you guys. Lets get back to headquarters and the judge. All right. Welcome to the halftime report. Im scott wapner. Top trade this hour, the trump rally reignited . Stocks are sharply higher today. Credit todays jobs report. Ceo meeting a the white house. No matter the spark for the move though does it move that even bigger gains lie ahead . With us for the hour today, josh brown, stephanie link, john najarian. Doc, you first. Banks leading the way. Best day for banks since november. Are we just about to pick up by it sort of stalled . You got asquad today. There are only three of