Transcripts For CNBC Squawk On The Street 20141107

79. Our road map goes like this. Markets holding on ton a positive open payroll growing modestly in october. Unemployment rate dropping to a fresh sixyear low. Disney matched estimates with revenue beating forecasts. A slow advertising market. A fourth toy story movie will be released in 2017. Moments away from the exclusive interview from whole foods ceo. The october employment report showing businesses added 214,000 nonfarm jobs last month. The Unemployment Rate fell to 5. 8 as more people entered the labor force. That is the lowest Unemployment Rate since july 2008. Listen to Steve Liesman who owns this report. What i thought was most important was the august unemployment number that caused a tremendous decline in the stock market was revised back up to the average. What you have is more consistent less stop start. I thought begin the fact we had such big casino layoffs, the restaurant and retail numbers were strong. You didnt see oil weakness. It doesnt move the bond market. Its in line. Take it off the table. Another big bad event not to worry about. 49 months of job creation breaks a record that goes back to the 1930s. They havent been improssive by the month. What is the statement that the election occurs, people do the throw the bums out election, but the bums were creating jobs. I think the perception of the country is these jobs were created despite the white house. I think its not nothing is a conundrum. Everything is complicated. You could say the midterm elections and republican victories speak to Something Else which is perhaps a sense on the part of many people that they arent a part of the wage growth or the lack thereof. They dont feel confident enough that they are going to keep whatever jobs they are able to get. I dont know where it all stems from. There is a sense in this labor market that its not quite as steady as you might hope. Its a zeitgeist issue. Its clear that they hatted rancor. They want to have a beer after, tip oneill. We are creating jobs. The market is up because of job creation. Even though a large part of the country is not getting any raises and they are feeling that, you think this is goldilocksish for stocks . There was a chart last night when showed capital versus labor. That was fascinating. The Wealth Distribution in the country. For those who own companies versus those who work for those companies. Capital shot up more and labor shot down. The two lines deverged. The stocks that did the best hired nobody and managed to grow revenues. The stocks that did the worse hired like mad because though saw an opportunity in the year 2039. Think about the google conference call. The wall street journal watches the show. Apparently. I kept waiting for a reference to cramer in the story. That would have been too positive. That would have made so many of my family members happy, its not allowed. We are going to get to twitter. If did you nail the number, congratulations. We asked you to tweet your projections. Winner will receive a cnbc 25 hat autographed by the squawk on the street gang. Our staff is combing through the entries right now. Want to talk earnings now. Well wrap up a big week in the media earnings front with disney. Profit in line with estimates after the bell last night. Here is what bob iger told Julia Boorstin about disney results. The results were driven pretty much by across the board success. Our parks and resorts were up nicely in the quarter. We had a great quarter from our studio. Ended up being up 16 on eps basis across the company. Great intellectual property, strong tourism travel, and just a fine performance which capped off a great year. We were up 27 eps. Thats quite something given the size of our company and nature of our businesses. You can fall all over yourself talking about the positives at this country. Igers long and elongated tenure. Stocks going to be down this morning. There is continued concern about a weaker soft advertising market. We saw it yesterday. We brought Lesley Moonves on from cbs. Stock though went down yesterday. There is this underlying concern, maybe it shouldnt be there, in the Fourth Quarter things may not be quite as good either. One of the things iger has done, he has its not like he dodged it. The cfo, ad revenue at the network was down low Single Digits Fourth Quarter due to fewer units sold. It wasnt down because of fewer days or rainy. Advertisers hiring procurement figure to find out where the dollars should go. Facebook and google versus disney . Everything else was great. If you really want to know why you should buy the stock in weakness, the force awakens. It does. Thats december 18, 2015. Toy story 4 coming back. They could have skated on frozen but they didnt. Thats the point. We mentioned three franchises that will go on forever and generate billions, whether it be frozen which was unexpected or star wars which is expected after they spent 4 billion to buy george lucas company. Now toy story extending itself. There is this continued concern about softness. He had things to say about the old cable bundle. Weve been seeing a lot of stories about it. Theres still about 100 plus Million People who have cable in this country, but fewer every day. Iger saying the bundle, im not ready to abandon the bundle. Of course not. I wonder when you add up all the things you might pay for as a broadband over the top subscriber to video services, you want your espn and maybe you are a knicks fan so you want your msg. God forbid you are a mets fan and want sny. Minus 18 and plus 18. Cbs stock down 18 and disney if it opens where it is is up 18 . One guy is making the playoffs. The other guy not in the playoffs. Judge, one is increasingly a film story. Revenue 18 at disney. Look at what is still to come down the road. Shanghai does matter where someone i know, a good friend of mine is going and a good friend came back from. The china story is alive and well. Moonves with the cbs offering out there. You have to be ready. The question is will it pick up speed enormously and will we suddenly see 30 Million People unplugged . Barry diller, a reference to our event last night. Arguing bundling is not going to go away, but it will be something youll use if p you are older. Older. I listened to that. I said i bundle. Im old. Its a logical conclusion. 25 and under, you are done. On my show is my nephew. He like many people of his generation in their 20s, they have their ipad. Thats what they do. I think that was also we heard that from barry. Those of us, he did talk about the programming he does watch. We are talking about breaking bad. Its the high age of drama. When i go through disney, i think i have to watch espn. Maybe i dont need to watch espn3, 4, 5, 6, 7, 8, 9. I love the road show. We thought it was interesting to contrast disney you said buy for your kids versus twitter today. The comments in the journal story from Money Managers like bill mueller and price who argue kostec kostecki he lost the confidence. It read as though he was the ceo of groupon. Koslow was a trained median, a mason trained comedian on the job. There was a thesis. It was, what are we doing today . I felt like it was mickey rooney. Reference to the 25yearold. Lets put on a show. Twitter does have an investor day next week, i believe. A new theme developed on wednesday. Now its friday. Circles. One thing i did find interesting was the last thing said, they snuck it in, anthony noto is also there. All right. Maybe thats who does the more firm ground army guy. An adult. He is an adult. Hes never done improv. Not as though he doesnt have experience. He seems to have trouble articulating strategy he wants to stick with. He does snapshot though. Does he . Walter robb, company posting an earnings beat. Hell tell us whats working for the National Foods grocer. Futures. If you missed it, jobs came in at 214,000, a slight miss. Unemployment down to 5. 8. Act i. Scene 3. Open port twentytwoohoneseven on the firewall for customer db access. Install version twopointthree of db connector and ensure verbose flag is set in case of problems. clapping sound isnt the cloud supposed to make business easier . Get the one that can connect to the systems that you already have. Today theres a new way to work. And its made with ibm. Shares of whole food rose sharply after earnings estimates be beat. Has seen 100,000 apple pay transactions. Is this a new era for the organic grocer or a continuation of longterm success . Joining us exclusively is whole foods coceo walter robb. Great to see you this morning. Good morning to yall. I thought this was a breakout quarter. Tell me whether you agree and whether its instacart or the infinity plan is working . Give me the top three bullets why you think this quarter marked a significant change for whole foods longterm projections . It was a great quarter of tremendous momentum. First of all, the overall effort around values matter, the campaign which raised our profile in the marketplace, certainly fired up our team members. Second, all the investments in the Technology Area in terms of apple pay, 150,000 transactions counting on apple pay. Ins instacart giving our customers transactions outside the store. I would say also our pricing and value investments. We sharpened up there. We are seeing nice results there. The numbers go up dramatically. They do. We were going to do 40 this next quarter alone and 200 by the end of the year. It does make a big difference, whether its paint or decor or messaging. It refreshes the store. Customers feel excited to come in the store again. It does make a big difference. Lets talk about values matter. You are sapien program where you are showing big screens showing farm to table. Are these impressing consumers . That youre not the other guy, but youre better than the other guy . You reference the competition heavily in the conference call. I think what was important, this is who we are. We wanted to say this is what whole foods stands for. We dont sell the same stuff. While we will be relevant on price, we want to focus on the quality of the product we offer. No race to the bottom. Creating a new race to the top around new quality, quality standards and new choices for our customers. Walter, that isnt going to stop others from at least trying to look like you. Is there any give on that target of 1,200 stores . I dont see it. Weve got 41 Stores Opening this next year. We opened three this past week and claimed two flagship variety. I dont see right now we are getting great return on vested capital with these investments. We are seeing signs amongst the other players beginning to fall back or rationalization starting to happen. Our road looks positive going forward. One thing i thought was interesting. You talked about the idea the cannibalization seems to have run its course. Sounds to me that was kind of a onehit wonder. The cannibalization has gone away and much more smooth samestore sales going forward. This is a pretty clean comp. What i tried to say on the call was competition and cannibalizations have leveled out q to q. Last year they continued to progress. They were in 100, 150 basis points range. We think they are relative levels. The numbers you are seeing are clean in terms of the momentum the company has. You felt it was too early to declare victory on some of the perishable pricing experiments, but does that bring people into the stores who had good competitive perishable prices but dont explain why you want to shop there versus what you guys do. Thats right. We are a mix of price and quality. Price experiments in the price work we are doing in perishables particularly drives traffic. If you look at our comp number, you see a nice traffic number back up over 2 on its way back up. During the, coming out of the recession we had transactions up 60 , 70 over our comp. Thats the big value of these price investments is it really gets the customers excited and drives lots of traffic. What we are seeing is traffic is able to shop the whole store. Not just the produce or perimeter area. Ive got to tell you, ive been tough on you the last couple of quarters. I think this was the breakout quarter. The stock should be bought. Thanks for your patience with me and with us. Walter robb, coceo whole foods. Thanks for having me on this morning. We havent gotten to abercrombie and fitch. A lot of stocks on the move this morning. vo watching. Waiting. For that moment, where right place meets right time. And when i find it i go for it. announcer at scottrade, we share your passion for trading. Thats why we give you the edge, with innovative charting and trading features, plus powerful mobile apps so youre always connected, wherever you are. Because at scottrade, our passion is to power yours. Its in this spirit that ingu u. S. Is becoming a new kind of company. One that helps you think differently about whats ahead, and whats possible when you get things organized. Ing u. S. Is now voya. Changing the way you think of retirement. One stock that is going to be down over 40 points. Salix pharmaceuticals in an m a contest not long ago when it was being seriously looked at by allergan. Has the earnings blowup, cfo resigns. They have an Inventory Management issue of great magnitude, it would seem, for their drugs. And some questions here about whats next. Right. I want to be careful when i talk about this. These are complicated issues. The ceo in her fourth paragraph says this, that there will be an Audit Committee review in what will be board of directors has retained outside counsel. When that happens, it means its a sarbanesoxley violation. These outside directors which is that committee are very concerned. You hire outside counsel because the s. E. C. Is going to be heavily involved. The cfos departure, well see if there is anything untoward of any kind or if it was mismanagement of inventory in a significant way. Typically we know when the Audit Committee is charged that there may be something very wrong. Yeah. Let me ask you something. Would david pyatte lost his job could you imagine had they bought this thing at the nowinflated price we see and brought it into allergan . That would have been a mess. It would have been the equivalent of a poison pill. This meeting might have taken place and he still might have lost his job, you never know. Particularly if this had come out. Look this has an everest pattern. This is base camp 4. Theres a lot below that. Weve got a lot more to cover. Theres confidence. Then theres trusting your vehicle maintenance to ford service confidence. Our expertise, technology, and high quality parts means your peace of mind. Its no wonder last year we sold over three million tires. And during the big tire event, get up to 140 in mailin rebates on four select tires. You are watching cnbc squawk on the street live from the Financial Capital of the world. Opening bell in about a minute. Jobs number, a lot of Corporate News both good and bad. Whether its sears, abercrombie will have a tough morning today. L brands said the mall is terrific. The abercrombie release is more negative than the stock indicated. The big logo apparel in europe is weak. People thought it was making a comeback. International down 15. Blaming the macro in this case. Dont go there l brand did not praise the macro. You have to execute in this environment. Gap, october comps down three. Also a miss. Over at the nasdaq, fresh pet, maker of fresh refrigerated pet food celebrating its ipo today. They look like salamis in the freezer, you know what i mean . Cats and dogs, have you seen what theyve been eating . Its like three square. Men mills sees fiscal 15, low Single Digits. See that domestic number minus five . The september quarter. They promised. These companies are desperate to be organic, natural. You saw what walter robb said. This is not a fad. Its a longterm trend. General mills is still not up there. Viewed as a cereal. The enemy of the homemade granola. Sears stock up. They go through their financial wherewithal in terms of how much they have available, how much cash they brought in, including that offering for their sears canada shares, as well. The reason the stock is up this morning is because the company also says that it is actively exploring the monetization of a portion of its own real estate portfolio, potentially in the range of 200 to 300 stores through a sale leaseback transaction with selected stores to be sold to a newly formed Real Estate Investment trust. The company could continue to operate in the store location sold to the reit under one or more master leases. Under the exploration of creating a reit for 300 stores. Has the stock up 23 this morning. Its so easy. I know we all knocked sears at one time or another, if you look at the lands end spinoff, they made a ton of money. Im not saying everything sears does is knuckleheaded. No. Doesnt it feel like they are going down all the checklists of all the things they could possibly do . This has been out there a long time. Now they are getting to it. Im waiting for the craftsman ipo. Kenmore. These Companies Want to create an impression. They are solvent. They do own some of that real estate. The halcyon days of sears ended when home depot bought that real estate. When they applaud the fact their expected adjustment ebitda will be between a loss of 275 million and 325 million and say its a meaningful change in the downward trend of our year over year adjusted ebitda performance when they are applauding that, youve got to wont ir. Good word, wondering. Lets get back to the jobs number this morning. Labor Department Said business has added 214 nonfarm jobs. That came in below expectations but did extend the healthiest pace of hiring for eight years. Unemployment fell to a sixyear low of 5. 8. Lets get the first reaction from the obama administration. Mr. Secretary thomas perez, good morning. Always good to be with you. Good to see you again. The general take, i would argue, is people will take it, right . Its better than a weaker number. We are still frustrated to some degree that the labor market is not breaking out. Certainly wages are not breaking out. This is now nine months in a row. A year ago the Unemployment Rate was 7. 2 . If i asked you what do you thing the Unemployment Rate will be a year from now, i doubt anyone would have said 5. 8 . Weve got a lot of work to do, no doubt about it. The biggest piece of Unfinished Business is the issue of shared prosperity. Americans are helping to bake this pie of prosperity. Too many workers arent sharing in the benefit of that pie. They are putting in sweat equity. Thats not translating to financial equity for workers. Thats the undeniable piece of Unfinished Business here. We are undeniably moving in the right direction. We have to pick up the pace. Are you seeing any anecdotal evidence wages will make a turn to the up side . Construction growth for the last month. Construction workers on average in the last month were working the largest number of hours on record. Weve been keeping records since 1947. What we are seeing there, what we are seeing in manufacturing where the average manufacturing worker is working 42 hours a week, we see progress there. We see employers who need construction workers. You pass an infrastructure bill. Thats always been bipartisan. The American People send a clear message they want us to get things done. Thats how you get more construction workers back to work in middle class jobs. Same thing in manufacturing. We are seeing great progress there, but again, there is even more that we can do. Jim cramer here. Are you concerned in monitoring the decline, potential decline in employment in the oil patch begin the fact oil has fallen. Huge amount of investment oil, huge number of jobs created. Is this a worry for the administration . I think you look at that sector and you see real progress. I think Fortune Magazine had an article recently about the 100 largest growing businesses in america. A quarter of them were in the Energy Sector. That industry is a big part of the reason why manufacturers want to come back to america. We have a structural advantage in energy costs thats going to be with us for decades to come. Thats going to translate into more jobs for more people. Not just in the Energy Sector but in manufacturing and construction and other sectors. Businesses i talk to all over america say they want to bring their businesses back home. I was in germany and the uk last week. I heard from german businesses, i want to expand. I heard from folks in the uk. I want to expand here in america. I want to bring more business here or i want to bring business here for the first time. There is a real bullishness across the world from companies about america. Thats why we are going to continue to see this progress. Mr. Secretary, your party got drubbed in the midterm elections. You pointed out the significant fall of the Unemployment Rate not just this year but if we go back higher levels. There seems to be some disconnect between the electorate and what you expect would be their happiness with that fall in the Unemployment Rate and perhaps benefits for your party. Why do you think thats the case . Im not a political pundit. Im the labor secretary. What i do know though, the American People want to see things get done. They want to see progress. They want to see the ball moving down the field. They want to see progress. There is potential for progress. The American People, residents of nebraska, arkansas, nebraska, they sent a clear signal raising the minimum wage is the right thing to do. Those are hardly blue states. I think alaska had a 69 margin. 69 of the people voted to increase minimum wage there. There is another example infrastructure, minimum wage. Immigration has historically been bipartisan. The American People want to get things done. I agree. Thats how we pick up the pace of growth. Thats how we increase wages when we put these upward pressure by having more jobs out there. Its frustrating to the American People and the president and to me that in infrastructure, for instance, we cant have a longterm bill. Im confident we can do that. I am sure that will come up today. Weve got to move the ball down the field. Congress does get back to work next week. Well see what happens today and next week. I know youve got a busy day. Thanks for your time. Always a pleasure to be with you. Labor secretary thomas perez. You asked him about crude. The journal suggested 70 is the magic price for opec. Transocean, this writedown. They are blaming declining day rates, utilization. Transocean has the oldest rigs. They are overvalued here. There is depreciation of a rig. They havent upgraded their rig force. That said, if you look at what happened in mexico, these are the big projects, plus russia, the sanctions. There are so many things going wrong with offshore drilling. Its shocking. Transocean expected to do that to some degree. 70 doesnt matter. If you are in the permian, youre making a ton of money. If you came in at a high level its marginal. Where we know things are cut off, venezuela is where to watch. It could fail as a nation, even though it should be a rich nation at a certain point. These things, there are many moving parts. We are oversimplifying it. You can get a job further away from your house and commute. Really, they are going to buy a house . Inland empire numbers went down dramatically. Talking about the riverside area was devastated. Immigrants could get no dock loans because they didnt have docks and the commute. Sorry. Commute is still a commute in terms of miles. You can commute by yourself. People love to have their cars and their music. Weve got to get to pisani. We almost got to 10 for the year on the s p which is 2033. Fell back a little bit. Bob pisani on the floor. Six points shy of that. Nonfarm payroll out, its a good time to take stock where we stand. I think this is more than a fedengineered rally here. Weve got 5. 8 Unemployment Rate. Weve got historic low Interest Rates. We got a stock market at record highs. Earnings at record highs. Going to be up 10 in earnings this quarter. Low oil prices. This is with a government completely deadlocked. The bad news is the stock market executed a perfect v. I dont see a lot of bargains. Gold miners finally. Gold miners bounced back. I dont see a lot of cheap stuff out there. Look at consumer staples. We had a great run. This was before the open. Whole foods, walgreen, kroger. Double digit gains. In the last five weeks or so. Banks have had a terrific run. Particularly some of the super regionals. U. S. Bancorp, suntrust, wells fargo. U. S. Bancorp and wells fargo are at historic highs right now. They executed another perfect v. None of them can be described as cheap right now. The problem im having, we start staying in record territories and things keep moving up 1 or 2 . More food inflation. We talked about this all week. El pollo loco, costs for chicken are high. That stock is trading down about 5 right now. Sprouts farmers markets, earnings in line. Margins come pre s compressed b inflation. Chipotle talked higher prices, noodles did. Papa johns said our cost of cheese per pound, 2. 14 this quarter. The Second Quarter it was 1. 74. There is a perfect example of food inflation. Cheese was 40 higher for papa johns this quarter than the prior quarter. Dont say there is no inflation, folks. Uplands, a Cloud Computing company yesterday had a not good open. Priced at 12, closed at 9. 75. Tough day for them. Back to you. Thanks, bob pisani. Another day, another development betwe between allergan and valeant. What does he say in a letter . Ive been reading your filings and hearing reporting that says you guys are in active discussions with actavis. Put yourselves up for sale and sell to the highest bidder. Ackman saying now that allergan has two interested bidders, it can maximize the outcome by running an auction where Neither Party is a favored bidder and both encouraged to offer maximum value. Whats his fear . Theyll sign a deal with actavis, throw in a 3 break fee and make it difficult for valeant to win despite what many would say are a lot more favorable overlaps in terms of the businesses. Much higher synergy numbers for valeant than for actavis. A company that has been active in doing deals itself. Huge bids. They have done it. Bausch lomb is a big one. When it comes to ackman, i argue make valeant would have been better off having done it on their own. They would have made the annual meeting, fight for the board right away with their offer. Then they wouldnt have wasted all that time with referendum business ackman proposed that got them nowhere. Might not have gone to a tender offer which got them a lawsuit in california which may have cost ackman money if they lost this, they may question their initial decision to get in partnership with mr. Ackman. That is the best exposition ive heard. Do allergan shareholders win either way. What can actavis pay . Up to 2. 05 and 2. 10 and still do well. Lets get to Rick Santelli in chicago. Good morning. The market always has an opinion on every number. Its objective in many ways. We had a good number. Over 200,000 again. Especially after revisions to a couple of months ago which came in slightly under 150. As you look at the intraday, it is clear that the market moved lower in yields, which is associated with a miss. As a matter of fact, as we sit at 2. 34, we are now down four since the number. We were 2. 48 before the number. Down five basis points on the day. We settle at 2. 39. We are unchanged on the week. We settle 2. 34. As you look at the chart going back to october, you can clearly see that we seem to be turning a bit. Kind of the runup to the employment where rates rise. Culminated in exactly a onemonth high yield. Yeartodate down 70 basis points. Thats a big number. Bund yields. Same thing. They moved a bit lower. Dax . It moved on our numbers at 8 30 eastern. Euro versus the dollar. It had a lot of volatility. Didnt go anywhere quickly. Twoday chart, it has not been a good two days or good week. If we look at the other currency, dollar yen, that is a trade everybody on this floor is trading. Twoday chart reveals that the dollar is starting to creep higher after not a lot of action. If you open the chart up to the Fourth Quarter 2007, enough said. Back to you. Thank you very much. When we come back, an exclusive with Goldman Sachs chief economist. His take on todays jobs number. A state shot down at the open here. Dows down 47, s p down almost 5. You know how fast you were going . About 55. Where you headed at such an appropriate speed . Across the country to enhance the nations most reliable 4g lte network. Hows it working for ya . Better than ever. Howd you do it . Added cell sites. Increased capacity. And your point is. So you can download music, games, and directions for the road when you need them. Whos this guy . Oh thats charlie. You ever put pepper spray on your burrito . I like it spicy but not like uggggh spicy. He always like this . You have no idea. At t. The nations most reliable 4g lte network. Chocolate, soybeans, thisand apricots. Made with what kind of chef comes up with this . A chef working with ibm watson, on the cloud. Ingredients are just data. Watson turns big data into new ideas. And not just for food. Watson is working with doctors and bankers to help transform their industries. Today theres a new way to work. And its made with ibm. Last night cnbc held its 25 gala at jazz lincoln sent ir. Many of the biggest names in business were on hand for the event. Martha stewart, sandy weill, Ricky Drexler and more. We have highlights. Female announcer through tuesday at sleep train save hundreds on beautyrest and posturepedic. Choose 300 in free gifts with tempurpedic. Even choose 48 months interestfree financing on the new tempurchoice. The triple choice sale ends tuesday, veterans day. You are going to notice monster is up a lot. Not that they had earnings beat, but the cocacola relationship keeps getting closer and closer. This could be one solution to cocacolas poor growth. The other might be Green Mountain which is keurig. I was widely criticized for liking this Green Mountain, but this is a Franchise Company that owns the kitchen. I think both these companies are logical acquisitions in the end for cocacola if they want to grow. They have the best of all possible worlds. They have pieces of it and its fine. Remember, cocacola has no growth. It doesnt want to be general mills. The way you do it is buy monster and buy keurig Green Mountain. There is my Investment Banking thought of the day. When they do it, i dont even want 6 . Or 3 . On a day where the journal says management ranks in pepsi are losing another contender. What is on mad tonight . Henry schein. This company is up 110. I love to introduce people to Growth Stocks that have nothing to do with the economy. Henry schein, health care company. I like yield. A lot of challenges with Interest Rates going lower. David brain owns a Company Called entertainment properties. It yields 6 . Finding income in an interesting theme. Epr properties on the show. Have a great weekend. Great job last night. You earned it. Sanchez knows how to hand off to cut on a dime. Im giving with twitter more free publicity. 30 touches you win. Going to be fun to watch. See you tonight. Two exclusive interviews, jan hatzius on this mornings jobs number. Irwin simon when squawk on the street continues. Theyre still after me. Get to the terminal across town. Are all the green lights you . No. Its called grid iq. The 4 51 is leaving at 4 51. They cut the power. Itll fix itself. Powers back on. Quick thinking traffic lights and self correcting power grids make the world predictable. Thrillingly predictable. Having a perfectly nice day, when out of nowhere a pickup truck slams into your brand new car. One second it wasnt there and the next second. Boom youve had your first accident. Now you have to make your first claim. So you talk to your Insurance Company and. Boom youre blindsided for a second time. They wont give you enough money to replace your brand new car. Dont those people know youre already shaken up . Liberty mutuals new car replacement will pay for the entire value of your car plus depreciation. Call and for drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. Switch to Liberty Mutual insurance and you could save up to 423 dollars. Call Liberty Mutual for a free quote today at see Car Insurance in a whole new light. Liberty mutual insurance. Twhat do i do . You need to catch the 4 10 huh . The Equipment Tracking system will get you to the loading dock. There should be a truck leaving now. I got it. Now jump off the bridge. What . In 3. 2. 1. Are you kidding me . Go. Right on time. Right now, over 20,000 trains are running reliably. We call that predictable. Thrillingly predictable. Welcome back to squawk on the street. Our road map begins with jobs. Nonfarm payrolls with slightly under estimates. Jan hatzius will join us with his take on that number. The ceo of hain celestial is here. Is disney losing its magic . Find out what you should be doing with disney today. As we mentioned, our top story the jobs report coming in slightly below expectations. 214,000 jobs. Our senior economics reporter Steve Liesman in new york with more on what happened beneath the headline number. I am not picking up any angst, disappointment or concern at all about this report coming in below expectations. Thats because there is a consistent bias going back more than a year of upward revisions to the data. That includes that august number that so spooked the markets and was originally reported 142,000. Guess what . Its now at 203,000 and allows me to say theres now been an 11 month string of jobs over 200,000 created. Lou crandall writes wryly. It tells you how much labor Market Perceptions have changed which a gain of 214,000 feels mildly disappointing. Those revisions up to 31,000. Unemployment rate rounds down to 5. 8. It was a close call there. Earnings at 0. 2 , 2 year over year not a lot of wage pressure. Here are those details. Construction up 12,000. Manufacturing 15,000. Retail very strong. More than expected up 27,000. Professional Business Service and leisure and hospitality 52,000. Some commentary from diane swonk, lowerpaying jobs. We have exclusive interview with the New Cleveland fed president after the jobs report came out. It was a solid jobs report across the board. As you know, i like to look at trends in the data. The trend has been up for quite a while. I think the payroll jobs, i think, are a stock indicator the labor markets are improving. There is still room to do better. There are still people without jobs who want jobs. We are going to continue on, hopefully with the economy improving along those dimensions. We also had a strong separate household report, the result of surveys with consumers that showed more than 400,000 people coming back into the work force. This is in line with the thinking of fed chair janet yellen that improvement of the jobs market will bring up employed and discouraged back into the work force. My guess is yellen will believe policy is just about right. Thats what Everyone Wants to know. Thanks, steve. Especially for those great comments. First time we heard from her, president mester. Lets bring in david kelly, global chief strategist and diane swonk senior managing director with mesirow financial. You agree with that assessment, a good but not spectacular jobs report . Exactly. The headline number understated the strength. Steve hit the nail on the head talking about upward revisions. It was earlier in the recovery we war consistently revising down. That august anomoly is gone now. The fly in the ointment is low wage jobs. Some in response to the Affordable Care act. We are seeing that in our own business lines in insurance. Low wage employers, particularly in the Restaurant Industry are hiring more people to keep people below that 30hour fresh hold a week and provide health care to opt in instead to the Affordable Care act and buy health care themselves. Thats one of a bit of a twist in it we may be generating jobs for some of the wrong reasons. In general, we are starting to see more broadbased gains in manufacturing. Those professional Services Hiring fulltime instead of temporary workers with accountants, engineers. I call those meat on the bones jobs. Market down 38, modest declines. Arent we at a point where this market can rally on better, consistent news and dont have to worry about what it means for the fed . Of course the markets gone up a lot. I dont expect it to rally off every good number. I do think this is a good number. I think its a little bit stronger than steve characterized it as. If you look at the Unemployment Rate it fell by more than 0. 1 if you round it out a bit or dont do the rounding. Theres a lot of strength here. This labor market continues to tighten. We added about 230,000 payroll jobs per month this year. That is far in excess of our labor force growth. We dont have wage gains yet. That is depressing to me as a worker. I do think that thats because perceptions are this isnt a tight labor market. I think whats going to happen is over the next few months, as this Unemployment Rate comes down, its going to become more apparent to workers and employers that there arent many good workers available. Our Research Suggests when you go from 6 pshs down to 5 is when wage growth picks up. I would like to have seen it in this report. Wage growth is coming around the corner here. That is ultimately the big question. Why is wage growth so pathetic . Its interesting. Retailers said they are hiring up this holiday season. Because of razor thin margins, they are not paying up. Thats important. Wage growth remains very stagnant because there are still workers in the wings. We are whittling away at part time workers that want full time and have to accept part time. They are at high levels. There are workers staying marginally attached to school so they dont start the clock on their Student Loans because think cant get a good enough fulltime job to service that debt. The undercurrent is there is still slack, although less than there was. Even 3 wage gains is consistent with 2 inflation. We need to get up to 3 wage gains to maintain the feds target. We are running below the feds target right now. Would be become news to see acceleration in wages. We are still regaining ground lost. Majority of americans are under water from where they were on their Household Income from prior to the reception. Rather than being totally holistic and selfish acting as though you were an investor, that is presumably good news. If wage growth is under control when energy costs for companies are falling, that should expand their margins. Regardless of the social implication of that, if we are talking where the stock market takes us, that is a boon. Well, not necessarily. If you are not getting revenues. The razor thin margins in the retail sector, i expect this to be a better holiday season. You still are not going to lift many boats with the tide coming in because of the razor thin margins in retail. It is not allowing a lot of pricing out there. We did have some productivity growth. Labor growth picked up slightly. We have 40 profits on nonfinancials come from abroad. Its not the best picture for profits. What proportion of the stock market is actually, in terms of profitability is made up from retailers. Not very much. That said, at the end of the day we are going to rely more on domestic demand because we have a stronger dollar. If that demand is not Strong Enough, you will see some margin compression. It is good news for part of the reason why we are not seeing wage gains because the revenue situation is not what it could be for many companies. Theyve got a lot of cash on Balance Sheets. Their Balance Sheets are very clean. That is great news. More broadly, we would like to see more wage gains because the economy is more robust and a hotter economy, higher temperature on pricing power, too. Weve got to leave it there. Thanks for the debate on jobs. Diane swonk and david kelly. tis the season. You are looking at a live shot of Rockefeller Plaza where the 85foot tall Christmas Tree is about to be lifted into place by a crane. The tree is a 13 ton norway spruce. Cut down on wednesday at a home in danville, pennsylvania. Once its in place, the decorating will begin. The Tree Lighting ceremony takes place wednesday december 3rd. You can view it until january 7th. My favorite stat is once its all over, the tree is going back to pennsylvania and be used to build habitat for humanity. Very nice. This means lot of traffic in midtown manhattan. Yes. Get ready. Up next on the program, Pulitzer Prize winning journalist jim stewart will weigh in on the jobs number. Plus what he found out about the feds during the aig trial. Hain celestial seeing a nearly 30 gain in the last three months beating the street for First Quarter results. But what if you could see more of what you wanted to know . With fidelitys new active trader pro investing platform, the information thats important to you is all in one place, so finding more insight is easier. Its your idea powered by active trader pro. Another way fidelity gives you a more powerful investing experience. Call our specialists today to get up and running. Mattress discounters veterans day sale ends tuesday. But mattress discounters has the Largest Selection of memory Foam Mattresses under one roof comforpedic. Icomfort. Posturepedic hybrid. And wow four years interest free financing on the entire tempurpedic cloud collection and, get a queen size serta mattress and box spring set for just 397. But hurry the veterans day sale ends tuesday. Mattress discounters check out shares of intercept pharmaceutical. The shares are plummeting after they posted a wider than expected Third Quarter loss. Stock down by about 25 . If you are a longterm holder of the stock, youre still doing okay. Its up 200 so far just this yeartodate. Interesting news out of intercept on the earnings side. Back to you. Thank you, dom. U. S. Stocks off their low after a modest jobs report this morning. Labor department reporting businesses adding 214,000 john farm jobs last month. That is slightly below expectations. It does extend the healthiest pace of hiring in eight years. These indices were record highs earlier in the week. Thats the bigger picture. Joining us here post 9, Pulitzer Prizewinning columnist and cnbc contributor jim stewart. Cheering the report . I think its a good number. Pretty healthy. Weve been saying the u. S. Economy is really good. I have a couple of thoughts. I have to hand it to the republicans that they made this election about obamas competence and not about the fact stocks are at record high and unemployment number is at a record low post crisis. This is pretty good. Dont you think it was about the wage growth confirmed in this report . If you are a family, you havent seen average hourly wages go up in the last decade. Average incomes were lower in all but three. Im sure that is a factor. Remember a few years ago people were just happy to have a job. Forget whether their wages were the same or not. To even have a job. Inflation has been so restrained. These doll why ares are buying what they did before. I thought that was interesting. Secondly, looking forward. We are in this delegate balance between the threat of higher Interest Rates which everybody is nervous about. This is Strong Enough now looks like the fed will stay on target and raise made 2015. And stronger growth. Which is going to win out here. Are profits going to go up enough to compensate for higher Interest Rate driving stocks . Well be back in this pushandpull several months. You juxtaposed the fact they lost the election with the fact you think the economy is okay. There are in this report 16 Million People unemployed or underemployed. If you look at the surveys, is it not the majority of people that believe the economy is getting worse . At least a substantial proportion . So we have those two very distinct views within the economy. Im not sure how relevant the jobs report is in solving that issue. We had a hearing from the fed about this shadow group of people who arent looking for jobs that might want one. The number is what it is. This is the baseline we can compare to previous elections. Really, its good. You are getting yellen headlines here. Breaking news from the fed. Fed chair janet yellen speaking at a conference in paris to the bank of france saying she expects the head winds from the financial crisis to eventually wane. She says the normalization process will differ cross countries. Perhaps a reference to what is going on in europe which is increasing stimulus where the United States seems to be on hold en route to decreasing it. The normalization process could create greater financial volatility. About the sags now, she says its hardly ideal given fed stimulus and Central Bank Stimulus and fiscal contraction. She says the fiscal contraction going on is a big part of the head winds that kept the recovery weaker than expected. Back to you. Very interesting. Just what we were talking about. Normalization of policy could lead to heightened financial volatility. Normalization is code to higher Interest Rates. It gives the fed more tools for shaping the economy. I think she is also nodding to europe. Thats another significant event yesterday. Europe is talking more aggressively. They havent done it yet, but are talking about it. More stimulus in europe which is bullish for european stocks. With a lower euro could start to hurt u. S. Exports. Policy normalization will differ across countries. Imf managing director is in paris talking about this idea. We are seeing a policy divergence. You see that play out in the currency market with this dollar strength. Is that destabilizing if it becomes too extreme with the Federal Reserve on a path to normalization and japan and europe going the opposite way . Isnt that shaky . There are risks in there. I dont think per se is disastrous. That is what she preparing us for. Weve never gone through this before. Yes, there are going to be tensions. Do they have the guts for the volatility . Or will they keep rates lower to avoid it for now . Lets talk about the economy. Youve been looking at the aig trial and implications of the fed in that. The testimony there has been fascinating about the feds emergency powers, which is a subject that interested me and congress, as well. The keyword is, is something solvent . If solvent they can give them an emergency loan, if not, they cant. Lehman didnt get it, aig did. What does solvent mean . The testimony is gobbly gook. At one point tim geithner calls it a fog, a diagnostic fog. Then the fed has no constraints on it. That is a bug issue now. David boyce arguing that the possibility you get a surprise win on a 25 billion case against the government. Is it actually on the cards . Its a big number. The Legal Standard for that is high. I dont think there is any doubt he established how capricious the fed was. I remember they didnt know what was happening at aig. It came to them late. They were trying to figure it out on the fly and they were clueless. They didnt know if it was solvent or not. Yet they gave them the emergency loan. Thats fine. We got through the crisis. They have consistently tried to say we acted on principle. That is clearly not holding water. I think this trial has done a lot to eliminate those chaotic days. Good to see you. Thank you very much, jim stewart from the new york times. When we come back, the ceo of hain celestial will join us live for an exclusive interview after the company Beat Estimates in its First Quarter. How do you beat the number one seed . You just have to win 70 of your points at net. And keep unforced errors under 10 . On the ibm cloud, the us open analyzes 41 million data points from 8 years of competition to uncover key insights. Data can help show you how to win, no matter what business youre in. Today theres a new way to work. And its made with ibm. No question about that. But your erectile dysfunction that could be a question of blood flow. Cialis tadalafil for daily use helps you be Ready Anytime the moments right. You can be more confident in your ability to be ready. And the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. Tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. Side effects may include headache, upset stomach, delayed backache or muscle ache. To avoid long term injury, get medical help right away for an erection lasting more than four hours. If you have any sudden decrease or loss in hearing or vision, or any allergic reactions like rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. Ask your doctor about cialis for daily use and a free 30tablet trial. Last night cnbc held its next 25 gala at jazz at cllinco center. Many were on hand for the event including j. Crew ceo Mickey Drexler talking about leadership. Idea fine leadership as emotionally you own your business. You own it with passion and you either have or dont have an economic investment. When you have all three of those, you are the boss from day one and you care every single day more than anyone, and you have to build a team. Someones got to lead and someones got to be unpopular at times. Hain celestial also there last night, the ceo. The company reporting record sales continuing to hold their own in natural and organic food space despite growing competition. What can we expect in the coming months . With us here or a cnbc exclusive irwin simon was celebrating last night. Good to see you. Nice to see you guys. Your stock is at a record, 35 Revenue Growth. Not bad. How much more growth is there in this entire natural and organic category . So you had walter robb talking about the growth in whole foods. You asked him about 1,200 stores. He said yes. That was great news. Because we have over 2,200 products in whole foods. They have close to 400 stores today. Lets multiply it by three. Theres a lot of leg room, a lot of ground work there. Just to step back, if you come back and look at the word wellness, i started this company 20 years ago. 10 of the population understood wellness. Today its 90 of the population. You look at oregon and colorado where they just had a vote on gmos and true labeling. It didnt pass. Not quite there yet. But 49 of the voters voted in favor. Thats a big part of the population that wants healthier foods and full disclosure. Today our customers shop at walmart, target, costco in their last quarter talked about 3 billion of sales coming from Natural Organic foods. Kroger hes big one. Kroger has been a leader. Kroger has done an incredible job. They have come out with their own brand almost 1 million in sales. We are in early stages. You mentioned general mills. They bought annies. Hain will not do this alone. Hain cannot change the way the consumer eats. A lot of Big Food Companies for all these years have not been putting great ingredients in their products. Will hain pull an annies . Will you sell yourself for the right price . General mills and kellogg need growth. You are the ones who have it. Hain today is close to a 3 billion company. We have 25, 30 categories that are growing fast. At the end of the day, we are a public company. I would love to see hain stand alone. Look what we are doing out there we really changed what the consumer wants. We have a big personal care business. Johnson johnson sold personal products and put formaldehyde in it. Its like, what were you doing out there . Companies like cocacola and pepsi have come back and changed their soda. Now its a 6 ounce can instead of 10 ounce. We are giving you less sugar and less of the bad stuff. How big do you thing it will be for the markets . Whats the structure for that . Do you take us to a 20 market share . Who drives that . Does walmart drive it if it drives it, does it drive you down and out on price . Great question, simon. If i had to say what is hains biggest challenge . Supply today. Theres not enough supply of gmofree products and organic products. What we are doing is building out an infrastructure around the world for supply. Its not just here in the u. S. Im in india next week working with farmers there. It cant convert overnight. Well look at baby food today. Organic baby food is surpassing conventional baby food. Ellis is the biggest seller. Its not cow and gate, its not heinz. I hear for medical use its difficult to find vitamin c that is not gmo in some form, therefore, inactive for vitamin c infusions. Thats the degree to which thing aconsult tur supp aagriculture changed in this country. There is not everything out there we are going to be able to supply today that doesnt contain gmos. The decision is do we stay away from those ingredients . Food supply has to change. Would you read a can of pesticides and do this sometimes. Wear protective clothing when you spray this can. Its okay to eat the products youre spraying it on, okay . When you come back and look at it, companies and look, 65 countries around the world do not allow genetically modified ingredients in their food. U. S. And canada are the only two countries other than third world countries that allow that. We as americans ate these products. Americans dont really understand the issue. They want to know whats in their food, they want healthy food, they dont understand. Congress is not going to do an about on that, is it . Who lobbied the most . Where was all this money coming from . That was part of the problem. I would say this here. 70 of our Health Care Costs today come from selfinfliction of food and products we eat. Including nicotine or not . Exactly. Its not as though your competitors havent gotten the memo, trends are in your favor. The story of capitalism is people are going to be coming after you despite what is a growing market. I dont think its coming after us. In general there is a big enough consumer basis continuously changing. What else is happening out there, david, is millennials. 20 of the population is millennials. Ultimately will be 100 . They do not want brands their parents used or grandparents used. I have a 19yearold daughter. She does not want to use some of those things in brands. Its changing. Look at soup. Cans of soup versus fresh soup. Baby food. As a baby, used to take the little jar of baby food, one for mommy, one for daddy. Now 70 of sales today in baby food are pouches. You give the baby a pouch and put the ipad in front of them at 9 months old. You brought in these cleanse. Is this where its at . This is a cleanse, a juice. This sells for 10. 10 . This is kale, romaine, this is incredible whats going on. Its just not a cleanse, its a meal. Its a high price point. Thats more than the average wage in some places. Its healthy. If you went out and had a salad, this is equivalent to a salad. Its all organic and six pounds of vegetables. Are americans ever going back to cereal . Is that a dead category . I dont think its a dead category. I said six years ago there is going to be a change in cereal. We are moving to yogurt. Weve seen a growth in the yogurt category, fresh fruit category. Kellogg talked about special k and where that brand is going. Who has time to sit down with a bowl of cereal and milk . We are on the move. Great to get your insights on all these shifts. Straight ahead, goldmans chief economist jan hatzius will join us live to weigh in on the jobs number and future on the economy. You, my friend are a master of diversification. Who would have thought three cheese lasagna would go with chocolate cake and ceviche . The same guy who thought that small caps and bond funds would go with a merging markets. Its a masterpiece. Thanks. 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Its a powerful message how much slack is left. 2. 2 is well below the 3 to 4 range that janet yellen nodded as a normal rate of wage growth earlier in the year. I think there is progress, but very slow. Yellen saying normalization will heighten the markets. Does this move our parlor game . Not mean iingfumeaningfully. You have a people look at the last piece of information. The Household Survey was strong. Overall, its a touch stronger than expected. The Household Survey was more meaningful. This is second, third order stuff. For a while, the Unemployment Rate was falling for some of the wrong reasons. Now that has turned around. More participation in the labor market. Is that an important Inflection Point where the Unemployment Rate is falling for the right reasons . It is an important observation. You are right. In todays report, it very much fell for the right reasons. You had a very large increase in household employment. Increase in the Participation Rate. Be careful with monthtomonth changes in the Household Survey. What i like to focus on more is longer term. Even on longer term we are unchanged on the Participation Rate in 2014 to date which is better than what weve been seeing in prior years. There are very few groups of people that have as good a feel as you goo d as you do for the economy. We can see from the research every week you are looking at variables and what can change. A lot of people believe the fed is irrational in its fear if it raises rates it may have to come back in again. Do you see nasty things potentially happening two or three years down the line that would explain why the fed is so reluctant to do what many people believe it should do . There is a strong compelling reason to raise rates . There are other measures of slack. You are still missing your employer mandate. Inflation numbers confirm that. Inflation 1. 5 or less. Core is 1. 5 . Wages are still growing at a strong pace. One question, is there a strong reason to hike . The answer is no. There is the other question. What if youre wrong . Is it dramatic if you are forced back to the zero . Its hard to say. Those models are based on historical statistical relationships. When things are changing as much as they changed with the price of oil, with what europe might do, do those models hold up . Or do you look at them and go, they are really operating at their out of bounds . I dont know i can believe what they return to me . Its definitely good practice. We run different models. We do run the feds model which is now available from the fed staff. They put it into the public domain. We run other models. We try, even when we take the entire message from all these models, even it with hopefully good judgment, but some judgment. Crude oil, danger to the market . Net benefit. It might be a slightly smaller net benefit than it would have been ten years ago because of the increase in domestic u. S. Oil production. The benefit the consumer sees in declining oil prices. On net, its a positive important the growth side. 2. 96 was the average price at the pump. Do we hang around in the 70s . In the 70 to 80 range depending on what grade. Good to see you. Thanks. Some reports swirling right now around russia and ukraine of a massive invasion that have Commodity Markets on the move. Has the kremlin reacted . No specific kremlin reaction to this report. Moscow has of course denied previous reports of a Large Russian buildup along the border with ukraine. Always denies any russian involvement militarily in ukraine. Keep in mind, there have been a number of reports like this in recent weeks which havent panned out. Nato says today its still looking into this specific one. Theres a lot of skepticism about this on social media. That said, assuming it is true, that will certainly put more strain on an alreadyfragile ceasefire. This would be by my recollection the largest russian threat crossing over the border into ukraine since that september ceasefire. It depends on what happens on the battlefield days ahead. This could be no more than another calculated show of force by Vladimir Putin and not necessarily a military offensive. The ceasefire in ukraine has been a very hot one. Both sides blame the other regularly for breaking it. Both continue to fight, but on a lower level than may, june and july. Mostly sporadic shelling around that strategic airport which remains in kiev government hands. Just today, there were two more deaths, two funerals for young ukrainian boys who were playing in a residential area that hadnt been hit before. They were both killed by prorussian shelling. This is going to go on and continue to simmer. A good reminder the story has not gone away. Jim meceda in london today. We want to revisit whats happening with intercept pharmaceuticals. Earnings were just out. That was earlier today. Late yesterday researchers published results on trials for an experimental liver drug that showed possible side effects, including increase in bad cholesterol levels and itchiness for some patients. That means safety studies, more could be needed. Shares as a result are powered lower because of that news. Thank you. Up next on the program, is disney beginning to miss the magic . Stock in the red from a record high despite matching estimates and announcing toy story 4. Theyre still after me. Get to the terminal across town. Are all the green lights you . No. Its called grid iq. The 4 51 is leaving at 4 51. They cut the power. Itll fix itself. Powers back on. Quick thinking traffic lights and self correcting power grids make the world predictable. Thrillingly predictable. Big day . Ah, the usual. Moved some new cars. Hauled a bunch of steel. Kept the supermarket shelves stocked. Made sure everyone got their latest gadgets. Whats up for the next shift . Ah, nothing much. Just keeping the lights on. laugh nice. Doing the big things that move an economy. See you tomorrow, mac. See you tomorrow, sam. Just another day at norfolk southern. Opinions. Theres no shortage in this world. Who do you trust . Whose analysis is accurate . How do you make sense of it all . A simple, unbiased stock score consolidated from the opinions of independent analysts. Is that too much to ask . Nope. Equity summary score, powered by starmine, will help you execute your ideas with speed and conviction. And its only on fidelity. Com. Open an account and find more of the expertise you need to be a better investor. Twhat do i do . You need to catch the 4 10 huh . The Equipment Tracking system will get you to the loading dock. There should be a truck leaving now. I got it. Now jump off the bridge. What . In 3. 2. 1. Are you kidding me . Go. Right on time. Right now, over 20,000 trains are running reliably. We call that predictable. Thrillingly predictable. Shares of disney coming off yoeds record high trading down this morning. The company reporting fiscal Fourth Quarter profits broadly in line with experts. Welcome to the program. Thank you for having me. Good morning. Clearly, the up side for disney comes from the theme parks and studio operation in the wake of guardians and frozen. How concerned are you about this relentless drum beat within tv of ad softness . Espn pacing low to mid Single Digits, abc, low Single Digits. Does that worry you . Not really. Espn is an affiliate Revenue Growth story. They put up 5 advertising Revenue Growth the past couple of years. That did not stop the stock from working at all. I think its tangential. Ive got 21 franchise films released over three years, including star wars and the shanghai theme park online with 330 Million People within a threehour drive. Do i buy it now and sit tight for 16 . I think disney will keep going up because earnings are going up. Its not unusual for disney to have a book case two years out. If you are buying disney now, thats what youre buying it for, for 2016. 2015 will be a quiet year in terms of earnings growth. Partially because of the comp from frozen and stepup of programming at espn. Tv executives continue to make headlines for announcing they will take channels digital, over the top as we call them. Hbo and cbs. Last night bob iger was clear while they have the brands to do that, they dont intend to do that now. Does disney stand alone as being the last man not to do it because it is so concerned that the cable tv package will break up and that cross subsidization will be diluted . The ecosystem works well for espn. If you were getting close to 6 on 90 million plus subscribers, you wouldnt be looking to change the situation quickly. All those conversations are a little bit overheated. Anything that happens will be an evolution rather than a revolution. We are talking about very much viewer industry. When you call for a radical change, i would be suspicious of it. Thank you for your time. Have a great weekend. Thank you. Mark zuckerberg holding his first ever public q and a on facebook. Some people flew in for the event, including one woman who asked him how accurate the Movie Social Network was. Writing code and building a product and company is not a glamorous enough thing to make a movie about. You can imagine a lot of the stuff they probably had to embellish and make up. If they were making a movie, it would have been of me sitting at a compute er coding for two hou straight, which would not have been that good a movie. He sound some of the things the film makers made up hurtful and the real story was just a lot of hard work. Also answered why he wears a tshirt every day a la steve jobs trying to strip out all other distractions from his life. I like how he said it was hurtful they made up the plot he created facebook to attract girls. Thats why they won the oscar. They did dramatize him sitting at a keyboard. He is a little bitter. Henry blodget will join squawk alley live. Opportunities arent always obvious. Sometimes they just drop in. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Blodget so ally bank really has no hidden fethats right. Accounts . Its just that im worried about you know hidden things. Ok, whys that . No hidden fees, from the bank where no branches equals great rates. This is kathleen. Setting up the perfect wedding day starts with her minor arthritis pain, and two pills. Afternoon arrives and feeling good, but her knee pain returns. Thats two more pills. The evenings event brings laughter, joy, and more pain. Whats that, like six pills today . Yeah. I could take two aleve for all day relief. Really . For my arthritis pain, i now choose aleve. 2 pills. All day strong. All day long. And now introducing, aleve pm for a better am. Im just looking over the company bills. Up . Is that what we pay for internet . Yup. Dsl is about 90 bucks a month. Thats funny, for that price with comcast business, i think you get like 50 megabits. Wow thats fast. Personally, i prefer a slow internet. There is something about the sweet meditative glow of a loading website. Dont listen to the naysayer. Switch to comcast Business Today and get 50 megabits per second for 89. 95. Comcast business. Built for business. It is many monthly jamboree that is the jobs report. Rick santelli in chicago for his take on this friday morning. Thanks simon id like to welcomal my normal non pharm payroll day hightech. It is in 30 rock in new york. Welcome jim bianco. Your breakdown . As far as the head line number goes, i still think it is more of the same. Over the last 6 months, private payrolls we have produced 239 jobs on average. We did that in 2012, 2013 and again in 2014. So there really isnt much of a change. Now the change is weve run the volatility out. The number is like the same number every month as opposed to a wider variance where we do 1501 month 250 another month and average that out. So the numbers in 2012, 13 and 14 produced disappointing growth. And the numbers now are in the same range that we had when we were producing disappointing growth but they are not bad a set of numbers. But i do think we should hope for better. And the wage front, you mentioned that too, there is no wage inflation. It looks like and there probably isnt going to be any time soon. Listen to the wager secretary, the economists talking about the number. But maybe more importantly the markets assessment of the number. So the kax, the dax, the s p, ten year, bund rates. All are a bit disappointed in the number. Am i off base to draw that conclusion. Not at all. Because if you look at what people were whispering yesterday and throughout the week, they were hoping more close to 300,000. Hoping and whispering for a big blowout number. And i think the Market Reaction was that. Its okay is and maybe borderlines good but we were hoping for good to great and we didnt get it yet again. And that is why i think the Market Reaction has been muted to this number. All right. And the final 30 second, obviously theres been img improvement. But many programs could be depicted as throwing the kitchen sink to get these job numbers higher. The improvement we all agree on. Is it enough jim . And does it really matter whether there is improvement . Isnt all that matters is is that we get more people back to work out of the 92 million pool thats stopped looking. I agree. Its not a disaster. It is okay to good. But if you were to back up four years ago and you would have said look the fed is going qe 1, 2, 3, the Balance Sheet goes to 4. 5 trillion dollars and theyre going to pull out all the stops and then describe what we have right now, i think most people would have thought of that as a disappointment. They would have expected a lot more. Jim its so different talking to you with this many miles in between. But you always do a great job. Thank you again. And lets go to sarah back at stock exchange. Stock exchange. Yes. Thanks rick. Lets send it to jon fortt with a look at whats next. Twitter, its one Year Anniversary as a public company. Where does it go from here . Look at the bull and bear cases there. And disney, well, the movies did well for them. Everything else not as well. And investors apparently cant let it go. Stock down. And were going to look at whats next for them. And one of my favorite entrepreneurs just left microsoft. Days ago was running investment for them. Whats next for him and his takes on microsoft and hp his former employer and gaming which hes big into to coming up. Dad,thank you mom for said this oftprotecting my future. You. Thank you for being my hero and my dad. Military families are uniquely thankful for many things, the legacy of usaa Auto Insurance could be one of them. If youre a current or former military member or their family, get an Auto Insurance quote and see why 92 of our members plan to stay for life. Tigers, both of you. Tigers . Dont be modest. I see how youve been investing. Setting long term goals. Diversifying. Dip you got our attention. We did . Of course. Youre type e well, i have been researching retirement strategies. Well thats what type e s do. Welcome home. Taking control of your retirement . E trade gives you the tools and resources to get it right. Are you type e . This guy could take down your entire company. H . Stay with me. On thursday a hamster video goes online. On friday it goes viral a network choking phenomenon. Why do you care . Hes on the same cloud as your business. The more hits he gets, the slower your business may get. Do you want to share your cloud with a hamster . Today theres a new way to work. And its made with ibm. We werent able to reach this months nail the number winner. And he did nail the number. Right on line. 214. Thats a lot better than most economists. They were expecting 233. Turn it up and check your twitter feed and wed love to hear from you as soon as possible. More importantly you get that cap. With that over the squawk alley. Good weekend, good morning. It is 7 00 a. M. At twitters headquarters in San Francisco and 11 00 a. M. Here on wall street. Squawk alley is live. Welcome to