Transcripts For CNBC Squawk On The Street 20150508

Westside highway from where you are at headquarters. Well speak to barry diller later in the hour talking about iac and the many changes taking place in media. Late they are morning, ill be talking to Lesley Moonves the ceo of cbs which reported numbers after the bell that were better than expectations. Well keep an eye on that stock price. We look forward to all of that. See you back in a few. David, could you ask les, could you get those guys on thursday night to play better football . He highlights that like the first paragraph. Its teams you dont want to see and the over is like 12th. Yeah. They have had a little bit of trouble with competition thursday nights. They did note that jim. Obviously, always plenty to talk to him about including the Pacquiao Mayweather fight, including he was involved putting it together and now with the litigation no shortage of topics when it comes to mr. Moonves. Except csi brooklyn. We do not have that yet. Sumner redstone may have given you one, as well. Well see you back in a minute. Carl quintanilla is on assignment today. Lets look at futures and look at the open on the street. Dow after that jobs report looks like it will open by 190 points or thereabouts. The s p 500, nasdaq with a strong open. At least thats how it looks now. Well talk about approaching those record highs yet again after what we are seeing in the markets this morning. Look at crude oil. That is a big story as weve been following. It got back over 60, 62 or so this week. Falling back. Its a gain today. Just hanging out under 60 a barrel. Thats the june contract for wti. All the focus over the last week at least has been on the movement in the 10year note yield. There it is at 2. 14 . Our road map starts with that jobs number. Pushing stocks higher. Unemployment rate hitting a sevenyear low. Mcdonalds sales declined globally in april. Kale, the hamburglar james franco, it continues. Rejection in the uk not just for the liberal democrats. Rejecting a 45 billion takeover offer from monsanto. The jobs report. The Labor Department says april nonfarm payrolls received a lift from the Services Sector offsetting weakness in mining. March payrolls were revised lower to a gain of just 85,000. Unemployment rate fell to a sevenyear low of 5. 4 . As for wage growth average Hourly Earnings rose 0. 1 . Later this hour labor secretary thomas perez will join us with Obama Administration reaction to the jobs report. A report some say goldilocks. You get a better than expected number here. You get the benign wage inflation. Not a lot of wage increase. You can add 223 to 85 and come up with a blended average thats soft. Interest rates immediately went down on this. I am sure there are people at home saying wait a second how can that be . The answer is people are losing faith in the momenttomoment of these job numbers. Rick santelli big shout out to him, i know youre listening. Im on the 9 00 to 10 00 clock on the show. He said right, there is no correlation these days. I think its cynical to admit, but true. This was the strong number. They decided interest rates, they went down. Maybe rates overshot scott. Thats my thinking. We got up to david, speaking of overshooting weve been watching the rate picture globally. Yesterday the tenyear may have touched 2. 30 for a minute. Speaking about what jim is saying about this notion of overshooting. It feels as though the macroplayers have been in charge. We are certainly losing money to a certain extent those who have been short in germany, we know. That move alone has been extraordinary. It was extraordinary to imagine that the tenyear bund would get to negative rates. It almost did. Storming back to an incredible yield now of at least 75 basis points when you lend your money to German Government for ten years. All that being said we have a lot of movement here. Yesterday Steve Liesman was on the 4 00 talking about if we get a strong number now and a strong number again in june is it possible that the fed will reconsider and even move in june . I dont know if this number is quite strong enough. It may be in the ballpark. I dont think the number is strong enough. I think thats one of the reasons why rates are not going down are going down. One of the things i think striking all of us here is this whole game of when they are going to move is obscuring things like the monsantos agenda altera. There are deals more important than rates not getting done. Is there a new pattern of just saying no . Great question. We know m a this year has been very strong. There have been plenty of deals that are getting done. It certainly adds confidence to the overall market. When that confidence comes back ceos get more confident that their stocks will respond positively if they announce the deal. We are seeing an interesting spate of deals it appears are not getting to the finish line. Sometimes things are not leaked so you never know when a deal hasnt reached the finish line. In this case not the first time monsanto tried to make this overture. It would have allowed the company to divert. Senator durbin sent a letter saying he would look askance at the idea of monsanto trying to invert, even though this would have fallen in line with the new treasury regulations. Syngenta did say they got a proposal from monsanto. They see the benefits of the restructuring we are currently doing targeting a savings as much as 1 billion by 2018 as a better road to go down. We think our r d pipeline is in low innovation and commercialization but we have a strong portfolio of new products. No one doubts these two companies combined would make a strong competitor. There are questions about antitrust. Antitrust lately comes at the top of the list now. Or teva and mylan where thats the least of the issues they would have to come front. It comes up a lot, begin what happens with our own parent company. Its a viciously competitive deal so both stocks are moving higher. There is a suggestion you have to watch the currency moves here and what the dollar does because monsanto could come back at a later date depending on the movement in the dollar. Yeah. There is no doubt they would like to do this deal. I dont believe there is a great chance they are going to come hostile. This is out there. We all know it now, syngenta having chosen to reject. Its a swiss company. I spent a lot of time lately getting to know dutch law as it relates to mylan. As for swiss takeover law, im not as familiar with it. I believe they mention stake holders in their response. When you hear stakeholders you know a company may have a lot more to go on in rejecting than simply saying no to price. At this point, it does appear theyve been stymied yet again. What does this mean to you . You put it into the bigger picture. You asked if this is a new thing when it comes to m a. Is it a broader statement with the markets . I feel because of yelp and salesforce. Com, they say takeover rumors are flying. This is gigantic bid. Consolidation would be incredible. The pharmas are this is a really important deal. I think sometimes we get caught up in rates and not looking at the big picture. There are companyies furiously trying to combine what they think is a lenient Justice Department. I think the Justice Department is not lenient and we need telco consolidation. Both stocks are flying. They are going higher. Question as to whether monsanto down the road sweetens the offer. Right. I think they will. This is the beginning. You want to talk about yelp since we are going there . I predicted unfortunately, you live and die by yelp if you own an inn or restaurant. I happen to run and own an inn or restaurant. Yelp is the prayer to yahoo. Day david did this interview with alibaba. Yahoo is worth less than zero. They can pay whatever they want for yelp. I think thats important. People have to recognize that yelp is an incredibly important vertical that stopped growing because google changed the algorithm. Google is in charge. Yelp can be yelp strikes back if they merge with yahoo. Thats the way the web works. Google is a giant and they determine who wins and loses. Does the giant take out yelp . Google . Is it facebook . Its a bidding war. This is the most valuable property currently available. You merge it with grub hub and you become the de facto way to travel and figure out where to eat and where to go mobile. Its a winner. I want to do it myself. Believe me if i werent sitting here next to you and talking to david, i would be doing this right now. Ive got 4 1 2 stars on yelp in both of my properties. There ive said it. We are going to move to a different story. I would be remiss if not to get your opinion about what you think about this . Jim has been trying to arrange a marriage for yelp for quite some time. It appears he is getting traction here. Based on reports they are exploring it. A worthwhile topic to bring up with mr. Diller. They are so dominant in the dating gay. You the dating game. You guys dont use tinder but might as well ask him. Maybe hes got interest in yelp too. There he goes. Look forward to that. Davids interview with iac chairman barry diller. Sara eisen is at nike headquarters. Shell have a first on cnbc interview with that companys ceo. Hi scott. Good morning, everyone. We are here at nike because the president is here. Hes here to talk free trade. Controversial decision given nike has been the poster child for outsourcing jobs overseas not to mention unfair wages and poor conditions. Why is president obama here at nike . What is nike going to announce in terms of u. S. Manufacturing and jobs along with this visit . Well have that interview with mark parker the ceo of nike first on cnbc. Back to you. I love mark parker and i love nike. Nike is talking about 10,000 jobs. They own china. They own europe. Kevin plank has his work cut out for him. Planks a player. Also i loved edd yesterday. Jordan speith rory mcilroy paired together. When words collide. 182 on the dow after that better than expected or at least in line what some expected after that bomb we dropped end of march. More squawk on the street live in post nine when we come back. Ameriprise asked people a simple question in retirement, will you have enough money to live life on your terms . I sure hope so. With healthcare costs, who knows. Umm. Everyone has retirement questions. So ameriprise created the exclusive confident retirement approach. Now you and your ameripise advisor. Can get the real answers you need. Start building your confident retirement today. Down 0. 6 in april including a 2. 3 decline in the u. S. And bigger drop in the asia pacific middle east africa region. Europe, the bright spot. Up 1 . Numbers coming out just days after ceo steve easterbrooke unveiled his crownedturnaround plan for that company. Earlier you said they are getting lucky in europe and thats helping the overall story. I had every single restaurant ceo on in the last month on mad money. When people make more and have more jobs they eat more pizza. It also turns out they eat more burgers. You may decide this is a turn by easter easterbrook. They are ordering another dish in addition. Mcdonalds can turn. This has to be the stock people want to own in the dow more than any other stock in the dow. Everyone is trying to create the thesis. Even in all of the issues that the companys had over the last couple of years relatively speaking the stock has held in in the face of all of it. Its a bond. Not talking about the stock going down from 100 to 60. Its held. In every day its almost in the 90s. I would have done much more what Howard Schultz did, fix the bathrooms, make the place cleaner. Easterbrook, i know you watch the show. Start at square one. Please the franchisees. We are going to make our place a destination for people on the road people want breakfast. Trying to figure out some pricing that makes it so if we order coffee it doesnt cost 42. 80 during the busy period. You still have the u. S. Down 2. 3 . Expectation was 2. 7 . Europe europe europe. Europe can turn because of the fact the dollar peaked and they are wealthier over there. U. S. Will take care of itself if it just tries to get back to the basics. I had sonic on last night. Is there a place that induces more calories . No. Their numbers are terrific. Wendys. I dont know. Its packed. Why . Great burgers and big fries. Shake shack bad yesterday. Stay focused, my friend. Up next stay thirsty, too. Its cramers mad dash as we count down to the opening bell. Stay tuned for davids live interview with iac chairman barry diller. Futures, maybe a sigh of relief on the economy. Yes. Obviously, some questions about what could happen with the fed in june or later. Dow plus 184 as we head towards the open. [ girl ] my mom, she makes underwater fans that are powered by the moon. [ birds squawking ] my mom makes airplane engines that can talk. [ birds squawking ] my mom makes hospitals you can hold in your hand. My mom can print Amazing Things right from her computer. [ whirring ] [ train whistle blows ] my mom makes trains that are friends with trees. [ train whistle blows ] my mom works at ge. Here at the Td Ameritrade trader group, they work all the time. Sup jj . Working hard . Working 24 7 on mobile trader, rated 1 trading app in the app store. It lets you trade stocks options, futures. Even advanced orders. And it offers more charts than a lot of the other competitors do in desktop. You work so late. I guess you dont see your family very much . I see them all the time. Did you finish your derivative pricing model, honey . For all the confidence you need. Td ameritrade. You got this. We have about eight minutes before the market opens. It looks to be a big friday down here on wall street. Dow looks like it would open by 185 points higher. The s p nearly 20 points after that jobs report. Time for cramers mad dash ahead of the market open. Calling it the mothers day rally. Unbelievable. Listen to me well start with tableau data. This is the highest Growth Company i follow. They guided up. Its a magnificent quarter. Raising this raising that. I do believe the tabloid data will become the de facto next sales force. Com now that we are no longer rumoring salesforce. Com. You know what i learned about this job . It works better when youre wearing a microphone rather than when its sitting on the desk. I dont know. Maybe you become public with that idea. I was trying to project my voice. S s it does reach like the Washington Capitals when youre cheering. Aol. Tim armstrong delivers what we look to be the First Company other than google that is making money off ads. This is a breakout quarter for aol. I believe there will be more stock buybacks coming later. People who doubted Tim Armstrong, he wilbury you. Inflection quarter. Inflection quarter. Exactly right. I think people ought to go through because they recognize Tim Armstrong has come up with a way to grow that is not just google. Google. Up next, the opening bell followed by labor secretary tom perez and media mogul barry diller. Well, a mortgage shouldnt be a problem your credit is in pretty good shape. Pretty good . I know i have a 798 fico score thanks to the tools and help on experian. Com. Kaboom. Well, i just have a few other questions. Chuck, the only other question you need to ask is, what else can you do for me . Ill just take a water. Get your credit swagger on. 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Im not using my phone any more. This is better. I woke up with this. I had the alarm set for 3 25. It went off at 3 25. Technology is amazing. You did talk about, aside from the historymaking event, whether conditions are ripe in the market for a rally. You watch what oil is doing. We are so bearish. How quickly they got bearish. The rates spooked a lot of people. We have what will amount to be maybe a rate scare. I do think that the data is not so strong that we should be thinking every minute about the rates. We should be thinking about netflix. Think about syngenta. We should think about making money, not making macro. I saw a stat. For the third time in less than a month, the s p rebounded after taking out the 50 Day Moving Average the day before. That is the short squeeze. Thats why we go nowhere. We constantly gaffe the shorts. They cover and why did we buy . The economy is not that strong. If the dollar is peaking, im going to raise estimates for a lot of companies i took down for because i thought the dollar could go to 100. That was the consensus. British election another reason to sell the dollar. The brits are conservative. Cameron was the first conservative since thatcher to win backtoback terms. The margin of victory. I thought we should mention it. I like that. Reagan thatcher. That country is very conservative. Do you think we are going to allow ourselves to get beyond this rate story . No. We cant. Everybody talks about it. I was tired of the discourse. And cnbc where b is bond. There is the opening bell. You are watching that at the s p 500. Cnbc realtime exchange. Here at the big board, the governor of michigan rick snyder. Some thought maybe would run for president. Says he is not. At the nasdaq at least someones not. Right. Look at this. Im looking at these stocks flying. Some are on earnings. Some are on biobacks like biogen is ringing the bell at the nasdaq. I think people are afraid to miss this rally because they are short. The technicals have been so powerful. Everyone is following technicals because no one can make sense of anything. They cant make sense of interest or earnings. Technicals are letting them down. You get past the real heart of earnings season. You start to move on. You get to that area where maybe more companies can continue to do these buybacks. Some will buy because the companies are buying. Buybacks 141 billion in april. The highest total ever. What does that say . Conviction with their stocks are so high. A lot should be able to move the earnings up dramatically. Its been a lager. Celgene is a laggard. Boeing a big dow stock. People worried because the dollar and airbus. I could tick down what worries are coming out. Thats very important. To be worriedfree into mothers day is victory. Who do you have at 12 00 . Ive got to think about it. I dont remember. That is a plug. You caught me by surprise. Alibaba. Im punchting like tom brady. Alibaba. Goldman says buy it. Up 2 right now. Yahoo is going to take that capital and reform the company. I do think this alibaba can go like goldman says. Can go to the 90s. 40 growth with cost control is better management. Its not done. It bottomed. It was the ugliest chart in the book going into the quarter. Monster. I was on that conference call. Guys, do you have to just say everythings horrible . The way you play monster and keurig is cocacola. They did lose to red bull. My producers for the halftime show were furiously typing me. We have pimco, Paul Richards of ubs who made big calls about the economy and the jobs report. And oh by the way, the president is speaking at nike. Well have that live too. Sayrera. Its like the eisen hour. Ive been waiting to use that. Reporting a gain of 223,000 nonfarm payroll last month. Unemployment falling 5. 4 . Lets get the first reaction from the Obama Administration. Joining us labor secretary tom perez. Always good to see you guys. Big sigh of relief . This is a solid report. Very consistent with trends over the last year. Lowest Unemployment Rate in seven years. Its heartened to see the growth in construction. Business professional Services Education and health. The vast majority of these jobs are well playing jobs good middle class jobs. We continue to move in the right direction. Wages is where we continue to focus. Absence of inflation means we have wablg growth. We can do better. I was with house leaders last week, Senate Leaders talking about minimum wage. We sent an overtime proposal to the white house this week. Well continue to fight to lift wages and make sure this Recovery Works for everyone. Are we back on track, sir . After what was an uglier than first thought march . I never make judgments based on one month. If i have a huge month, i dont spike the football. If i have a bad month, i dont get too down. What we look at you look at the trend data over the last year. About 3 million jobs. 223,000 jobs last month is in the ballpark with what we have seen over the past year we have more work to do. No getting around it. I think its equally undeniable we continue to have the wind at our back. Mr. Secretary, jim cramer good. To see you. Always a pleasure. Thank you. Is it possible we can put to rest particular thesis. There was a notion if oil and gas went down we would start losing jobs. Isnt this the number that shows when oil and gas go down those industries lose people but the net benefit to the company is dramatic . 70 of gdp growth is consumption. Lower gas prices put money in peoples pockets. Lower gas prices as you correctly point out, we have seen losses of jobs in that particular sector. In the aggregate when people have money in their pocket, they spend it. We see robust auto sales. We continue to see construction. That is a bellwether. There are people doing that addition on their home. They have confidence theyve got a little money to spend. Thats why we see more electricians and plumbers and glazers and other folks getting jobs. Zero inflation is very helpful. Zero inflation right now is pretty much about gas prices. Mr. Ekt s,secretary, you are passionate in defense of American Workers. We got numbers from mexico showing dramatic build in autos. Mexico is so competitive versus the whole world 5 an hour do we have to start worrying our ally will begin to take key jobs from us . You look at the American Auto sector for instance, the jeep plant in ohio. In the 2012 campaign when governor romney said those jobs were going to china. They added 1,200 jobs. One of the things we can do visa vie mexico that will help American Workers is the Trans Pacific partnership. Im spending a lot of time on mix. When you fix the weaknesses of nafta through the Trans Pacific partnership, its going to have the effect of lifting wages in mexico. That is good for American Workers as well as workers in mexico. Thats why ttp is so important. If you want to make sure we take the lessons and weaknesses of nafta to bear the best way to do that is by doing what we are doing now which is negotiating with mexico so that they have to lift up wages because they will have to improve their labor system. We appreciate your time as always. Always a pleasure. Labor secretary tom perez for us today. This is the biggest problem i find in terms of competition. I own a house in mexico. There are trains that run by. There are factories, gm toyota bmw, mercedes pumping out millions of cars. They need to raise wages there or the whole world will move to mexico. Health care and no pollution control laws . Wow. We are off to a strong start. Bob pisani the dow is up 218. 101 advancing to declining stocks. That is a strong start. 101. Futures popped immediately. Look at futures. We moved 10 points on the s p futures right at the open. We are up a about 20 points. Not only did it move here it moved in europe, as well. Germany popped up. We moved the european stock market. You see 8 30 eastern time germany popped up there. The bottom line here is march weakness is being ignored. There is no, the phrase i heard this morning is bleed through. No bleed through to the second square. That is moving things. Broad rally. A lot of stuff up 1 . Materials, tech Energy Health care, industrials. That is a broad rally. When you get health care and materials both up better than 1 , thats what im talking about. One thing im puzzled about, natural gas took off this morning. I dont see a lot. There is a report they shut down their power reactor in new jersey because of a glitch last night that. Would increase reliance on nat gas. Natural gas stocks up bet per. Now they are on the down side. They were all up earlier on here. Ugly week for china. The shenzhen is up big, shanghai is up big. That Shanghai Hong Kong link took off a couple of months ago. Ipo markets hit a rough patch. Six ipos did not get out to market this week. Commercial Credit International Market Centers and four biotechs. We are hitting a soft patch for biotech. We did get one out. That is bojangles priced at 19. Well be interesting to see what Clifton Rutledge has to say. Thank you so much. Lets go to chicago. Rick santelli at the cme group. There are so many ways to look at it. Add last month and this month and come over 150,000 average on jobs or say we need to put a tomb stone on the notion that jobs, jobs, jobs is the answer to everything. The reason we look at jobs usually when you create more jobs you usually create more growth. If it takes more people to have the same output because productivity is dropping, draw your own conclusions. My hats off to the fixed income markets around the globe because i think they sensed this. Just consider this. On the week twos are down three basis points fives down three, tens closed to unchange 30s up four. Bund yields up 15 . Twoyear is a big mover because of the fed implications. Market doesnt believe june will see a tightening. March 1st you could see the move. Two day of 10z, clearly you see the move at 8 30 eastern. February 1st is the big chart. Double top in yields at 2. 24 . They overshot pure and simple. A two day of bunds is significant where theyve come down to. They are up more on the week than us. Probably because rates may have bottomed. The low for the year here at 1. 64 seems intact. Bottom seems intact. Yeartodate of the pound versus dollar, we understand the election issues. When you put in perspective a nice rally. Weve been there and done that not that long ago. Back to you. Thank you so much. Up next, hear what iac chairman barry diller is going to tell david faber about the future of media, the bundle and much more. Look at the stock market right now. We are off to a rocking start. Dow is up 230 points. A gain of 1. 30 . S p and nasdaq are also up wetter thanwet er better than 1 . [ male announcer ] your love for trading never stops. So if you get a trade idea about, say organic food stocks schwab can help. With a trading specialist just a tap away. Whats on your mind lisa . Id like to talk about a trade idea. Lets hear it. [ male announcer ] see how schwab can help light a way forward. So you can make your move wherever you are. And start working on your next big idea. The pursuit of healthier. It begins from the second were born. After all, healthier doesnt happen all by itself. It needs to be earned. Every day. Using wellness to keep away illness. And believing that a single life can be made better by millions of others. Healthier takes somebody who can power modern health care. By connecting every single part of it. For as the world keeps on searching for healthier. Were here to make healthier happen. Optum. Healthier is here. In the us, three in ten College Students drop out. But how can you spot whos at risk . The one who lives far from campus . The one who works the night shift . The one with new responsibilities . One thing cant tell you, but the right combination can. Universities are using ibm analytics to understand pressures in and out of the classroom some expect to cut dropout rates by twentyfive percent. Ibm analytics is working to make education smarter every day. The street. Im david faber here. A Beautiful Day here in a beautiful building thats been here for some time. So has this guy barry diller. The chairman of iac and chairman of expedia. You have the vote there still, as well. What do you mean still . I dont know. Things have seemingly changed but you control. Nothing has changed. Okay. Well get to that as well. I want to start with iac. I read your recent conference call, april 29th. You reported earnings. They were well received. 75 of the call was about tinder. Everybody wants to talk about this service. Its a hot thing. I totally understand it what we are trying to do is damp down all this crazy speculation. Why . Look. Its going to be what its going to be. Its had enormous growth. We just started subscription business. We have hundreds of thousands of subscribers, vastly more than we ever thought we would have at this stage. You take these projections and you can take them so high. It seems sensible it will be what it will be. Lets not get crazy before it is. People want to get crazy. There are some reports out that say its going to be equal to at least what iac is currently worth. I wouldnt thats a speculation. Of course it is. I wonder if it wasnt within iac. If it was another wellknown names in the valley that was a Venture Company that was doing round after round and watching its value go up i feel like we would be talking about it even more. Possibly. Okay. Im not against people talking about it. I think its great. Im not against people saying its going to be worth 3 trillion but for us our responsibility is since we birthed it rare that kind of home grown in a large company, largest company, new internet idea. So our responsibility is to grow it sensibly and to be in our own minds prudent and skeptical as well, while at the same time pushing it every way we can on the ground. The froth and all of that stuff, i dont want it to affect us. It will affect the way your stock moves. I cant tell you how many investors ive spoken to. Thats what they want to talk about, the embedded value of tinder. They wont tell you how much they own. What is that all about you wont tell people how much you own of tinder . We own all of it. You dont own all of it. There are shares in tinder im doing corporateness. Who cares . We own the majority of tinder. Right. Is that 95 . Its not 95 . Its less than that. Why not just put a number out there . I actually dont know why. You dont know why. I dont know why we dont. Its never really come up. No one said tell me explicitly what the number is. Really . Ive had people say ask him how much they own because we dont know. All these guys doing the math trying to figure out. We own more than 60 . More than 70 . You know something . I dont know. Hows that . When you find out youll tell me. If they let me. To the business itself which is growing very quickly. Match extraordinarily successful. Does it cannibalize match or help . We have thought everything to some degree cannibalizes Something Else to some degree. Usually history said it doesnt obliterate. Nothing really ever not nothing, but it doesnt displace. In match group, weve got dozens of dating services that go from very narrow niches to extremely broad niches. Match. Com is the broadest. Cupid is very broad. People tend to use multiple services. Because weve been akwistive and started up things inside match group, new ideas and things like that i think it keeps us vibrant. The best thing is when companies are able to compete with themselves. It does seemingly increase the overall pie is what you are saying . Yeah. The thing is there are still, its still a category that has some kind of mythical imagery drag to it. You have to find a date on a dating site . You cant go out there and do whatever, like be a normal person . You have to go online . Now you can swipe right or swipe left. The thing is technology brought to this relationship thing, flirting thing, whatever you want to call it thing, is a fantastic tool. The new idea for tinder which theyll probably kill me for saying, is essentially in a small area a bar, a large event room for whatever it will tell you who is in the room and essentially how far away. I thought thats not a great idea. Then somebody said you dont understand. Guys and girls are shy about that first, you know that, worry worried that its not a yellow light or green light but a flashing yellow light and theyll be humiliated. This is kind of a quiksilver to get you over the hump of being bold. Im sure you were shy in bars. I was trying and desperately failing most of the time. This would have been a Great Service to you. Its total fun. I play with it because i should. No i dont use it. I would say im out of the market. As am i. Although apparently that doesnt stop a lot of people. That is a stupid survey. This was one just released in the uk . Its totally false. It has dumb numbers about how many, 40 of the people are married or 50 , 60 , whatever. We are not going to disclose the stats, half of tinders audience is 1824. It is unlikely they are married. They already want me to wrap this up. Some stake will be for sale. Everybody will assume the valuation is 2 billion or some huge number. Are they incorrect to do that . I think they are making a speculative bet. I would look at the values inside the company and Pay Attention to those either achieved or near achieved values. Im not saying not ignore tinder and thinking about whether you want to be in the company or not. Yelps for sale. Would you buy it . I dont think so. No . Not really. We tried at our hand at it called city search. Yelp did a much better job. I do not particularly like sole advertisersupported content. For obvious reasons. Advertise ing advertising in this world where there is so much internet inventory and more coming on every day, and programatic pricing and all of that. To have no pricing power. Nobody in Digital Content has any pricing power. Why is that . Because there is so much . Its endless . There is so much inventory. Its basically automated. So you cant really go and say, gee, my audience has been growing and growing and growing. Like daily beast has gone from 10 million to 20 million in a year or so right . They dont care. Its just a little equation inside a thing. You have no ability to say im a good product and growing. You mentioned expedia. That company seemingly turned things around. It has. Quite steadily over the last several years. Expedia was the leader. Then it really got into not investing correctly in technology for a while. Incredible pace today. If you fall an inch behind in Innovation Technology then the undertow of that takes you way out. Its taken expedia years, but in the last and billions literally of investment, but in the last couple of years actually 3 1 2 years, expedia has just been on a true growth trajectory. And finally because we are tight on time. When you look at the portfolio of businesses you have investors ask me id love to know what gets you your highest return on capital . When you think about allocating capital at this company. We havent talked about all the different businesses. Where is the highest return . We have so little capital deployed when you think about it. You have no leverage. We dont believe in leverage. This Company Started, the iac Company Started 20 years ago with about 400 million under vested capital from. That date to this date including all our spunoff companies, its worth 38 billion. On that base of invested capital. Right. People forget of all the different spins youve done. So you know i cant quantify. You are not answering the question. When you look at the portfolio now, where does it get your highest return on vested capital . Again probably look we are opportunistic. In the travel business we bought travelocity, we bought orbitz. We invested a lot of capital in expedia, but expedia is following its travel track. As far as iac, where do you invest . You invest literally where there is a good idea. Barry, weve got to leave it there. We didnt get to talk about the media landscape. So what . So what. It was good to catch up. Nice to see you. Barry diller at iacs headquarters. We will catch up with Lesley Moonves about 35 minutes from now and talk about media. Back to you. Entertaining stuff. Thanks so much. David faber was the lady killer. Come on. Really. Dating service. Lets go right to it. Monsanto making this offer for syngenta. Syngenta saying no thanks. Monsanto is out now confirming it has made a proposal 449 swiss francs per share. It would provide shareholders with an attractive premium and significant further value creation. One more comment. Monsanto saying it believes the combination would deliver significant value to shareholders of both companies. The combination is expected to result in substantial synergies as the Company Delivers more integrated solutions. It would be great. Able to raise prices and tell the farmers, heres the deal. There are regulatory issues as you said. Easy come, easy go. It would an inversion. Monsanto. Gmo. Go gmo. Maybe its a gmo issue. Cyber arc was incredible. Stopped trading. Yes. Cyber arc was incredible. This is the master key inside. You buy palo alto cyber arc and fire fire. Tonight we have la quinta. People worry about hotels in texas. Hardly. And radius. Im keeping with my company that saves peoples lives. Have a great mothers day weekend. Dont forget the flowers or chocolates. Okay partner . I got you. This is a heads up. Have a great weekend. You, too. On the march side up 0. 1. You have to go back to may of 2013 to find a lower number that. Number was lower minus 0. 6. Heres the important one. Wholesale sales. Now at minus 0. 2. That is the fourth negative month that weve had on the sales side. Get this. You have to go all the way back to july of 08 which began a run of seven negative numbers to find a comp. This is also on the soft side. It will more affect whats going on when we revise q1 than q2. Back to you. Good morning, rick. Thank you very much, Rick Santelli in chicago. Importantly the big employment report today. Nice rally on the dow. Steve liesman is back at hq with more. How is it shaking down . This inventory number is a bit of a puzzle. We had that surge in imports from the trade. We thought they may end up in inventories, perhaps wholesale inventories. They did not. It will affect First Quarter gdp with a revision lower. The sales number i wouldnt be too concerned about. It comes with a 5. 1 decline in petroleum sales. You had good durable good sales, good auto sales good professional equipment sales. Those were positives. It could be that we go more negative than we already are. When it comes to the jobs report according to the markets, this was just about perfect. Not too hot, not too cold. That its phrase i kept hearing this morning from economists and market participants. Two basic threats. Majority of economists numbers confirmed the First Quarter weakness was temporary, partially weather related. They havent changed any one point of view about fed tightening. That keeps the twomonth average about 150. Participation rate has been stuck in this 62. 7 to 63 range. Not much in average hourly wages. Some of the commentary though from bmo saying american businesses largely shrugged off q1s economic soft patch and remain in a brisk hiring mode. Here is where you have the jobs and get some of that optimism. Look at construction up 45,000. If something was going to be weather related, construction is one of those areas. Leisure hospitality perhaps another. Temporary hiring at 16,000. Whats it all mean for the fed. Any lingering possibility of a june hike from the fed is now off the table. At pantheon the april headline rules out june. Two more payrolls to come before july that meeting is still live. It would take a very strong rebound in jobs and other data but the markets this morning clearly signaling that the possibility of early federate hike is diminished. One thing i did see quite a bit is people being more confident about september and that first rate hike. Let me just quickly its scott. Just a day after you spoke to evans who said lets wait till 2016 i wonder what he thinks today . I think evans sounded openminded about the possibility. Its going to be hard for the fed. I watched that Unemployment Rate. They changed their long rate and made it 5. 1. If you keep ticking down say those two reports which we now in july bring it down toward the 5. 1 long one runate its hard to say we belong at zero. Clearly a big day. Dow up 222 points. Its monster rally on belief the fed hikes will be delayed. Diane swonk joins us and david kelly. Good morning to you. Big move on the market. I just want to focus on lets separate out what the fed does and what the market does in response, diane, and focus first of all on what the economy is doing. People like me find this hugely disappointing. We were up a job growth of 280,000 in the three months to november. I know weve come back from the revision, but this doesnt signal the u. S. Economy is strengthening. Do you believe it is . Definitely watching the labor market has been like watching a toddler learn to walk two steps forward then they stumble a bit. Then they regain momentum. I think thats what we are seeing is more of a toddler learning to walk than a flatout sprint here that. Its problem for most consumers in the u. S. Economy. The wage numbers are weak. On the down side much of the increase in the employment cost index we saw that was encouraging for wages was in fees and commissions, which are related to last years consumer spending. On a more encouraging note the 5. 4 Unemployment Rate although we dont want to take it at face value, the Household Survey has shown more job gains this year than the payroll. The establishment survey. That means we could k see, although revisions have been to the down side we could see upside surprises as we move into may and june. We need them though. We need them for the Federal Reserve to feel the economy is more than tepid. Many hope the up side surprises would be in these figures. David, you have been a bull through this. You thought the fed shut have raised rates a long time ago. Before we get on to the fed and markets, do you see a bounceback here . I do. If you look so far this year on annualized basis, Payroll Employment up 1. 7 . Thats the real underlying growth in employment. Add on productivity. Underlying trend growth is probably 2. 5 . Thats fine. There is nothing wrong with that. It is eating up capacity. I think we still have the slack diminishing all over the place. We have the highest level of job openings since 2000. Lowest level since 2000. This is a tight labor market. I think the fed should if we are 5. 4 in the Unemployment Rate, there is no way we should be at zero on the fed funds rate. Is this the goldilocks report . Goldilocks was the 1990s when the economy was booming and you didnt feel the scorch of inflation. This is still the porridge is still too cool from my perspective and the feds perspective. Thats why you are not going to see a rate hike. They are only talking about a range from 25 to 50 basis points. But the pace at which they raise rates going forward, which they expect to be extremely glacial. David, there is some talk that there might be symbolic rate rise to come. Maybe in june maybe in july. Then theyll hold off pat. Do you think they could go through that process and transmit that verbally to the market that there wouldnt be some taper tantrum or the market falling back from here . I think the market will react to what they do. I think this is goldilocks grandmother. She is moving more slowly but can only move more slowly. Thats what weve got to adapt to. I think well get more than symbolism here. They will move rates july 30th or the middle of september. Theyll probably skip to say we are going to be cautious here. Then the numbers are going to catch up with them. If the labor market continues to tighten, theyll be forced into a more normal pace of tightening. Would you not admit you are increasingly isolated in the idea there be a nearterm rate hike then another one by the end of the year . A lot of people are saying december at the earliest. Im watching what the fed is saying. The fed is saying if they see inflation moving up back more than 2 the dollar coming down oil coming back up labor market tightening, that meets their criteria. Thats how im going to bet this way. Based on what the fed is saying by their own criteria. They should give us those two rate hikes. Good to see you both. Have a great weekend. Coming up david faber will sit down for first on cnbc interview with cbs Ceo Les Moonves after the big earnings beat. His future on tv and David Lettermans last days with the network. Nike Ceo Mark Parker sits down with our own sara eisen for a first on cnbc interview. Ameriprise asked people a simple question can you keep your lifestyle in retirement . I dont want to think about the alternative. I dont even know how to answer that. I mean, no one knows how long their money is going to last. I try not to worry but you worry. What happens when your paychecks stop . Because everyone has retirement questions. 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Built for business. Welcome back to squawk on the street at the headquarters of nike where president obama will be visiting and making a speech. He is here to talk free trade to push his asian free trade deal. His host is mark parker ceo of nike. Joining me now on a first on cnbc interview. Good morning, sara. Thank you for having us and hosting us on this important day for nike. You have news you want to share today. You are bringing jobs back home . We are. We are here to discuss with the president the new trade bill that he is working hard to put through about the potential this bill has to offer for us. It creates an opportunity for us to create jobs to drive Economic Growth i think for the company, and to really push innovation. Not just in terms of what shoes we make or what apparel, but actually how we make those products. How does that work . When people think of nike they think of jobs being outsourced to asia and mexico where you have 700 factories. Why does this deal bring jobs to america . It addresses an antiquated duty structure thats been in place since the 1930s, since the great depression. With the relief we expect within the ttp, we can use those funds to actually support innovation to drive advanced manufacturing here in the united states. Youve announced 10,000 jobs over the next ten years, which sounds great. Its actually not too much when you look at the Global Manufacturing book print of nike, which is a Million People around the world. Theres a Ripple Effect too off the 10,000 jobs. We expect that will actually create more like 40,000 jobs. When you look at suppliers, other manufacturers who would be involved and partners engineers, construction jobs so we think this footprint will actually grow to a much larger number. And this whole visit of the president here brought back to light some of the issues that haunted nike back to the 90s, with the factory, the poor conditions low wages. How much progress have you made . And can you safely say those issues are behind you . Id say we are incredibly proud of the progress we made. Its been a huge commitment for nike over the past 15 20 years. Its been a long road and continues to be a road we are on. We have a deep commitment to workers rights, to improving conditions within our contract factories. To create a greater, more sustainable supply chain. A massive commitment from nike. Very proud of the results, but through transparency and collaboration, we expect that journey will continue and well make a bigger impact. When it comes to specifically the trade deal and how investors should thing about it what does it mean in terms of profit . Relief on some of these duties for you would be tremendous. We will put these funds toward innovation. Innovation that drives manufacturing. Manufacturing actually creates opportunities for the consumer. We expect to push our personalization agenda give the consumer more choice. Actually drive product closer to market. These are the advantages of actually having manufacturing here in the united states. We think thats all good good for shareholders good for consumers and this is really what we are focused on. Speaking of profits at nike its been a difficult operating environment. We talk about the currency fluctuations with the strong dollar. Yet you managed to show underlying growth. Can you continue the momentum and the progress with margins . With high single digit sales growth given this kind of macroeconomic back drop . Thats our focus. We feel very good about where we are from a revenue standpoint we had a great last quarter. We expect momentum will continue. We have a strong diverse category offense. We have a diverse portfolio of countries. 190 countries around the world. The connection with the consumer is incredibly strong. The brand strength is very important us to. Thats never been stronger than it is today. Then the innovation pipeline is there. Those things all contribute to actually not only increasing the opportunity to grow but to create a profitable business and everybody wins. One thing investors are focused on that everyone seems to be focused on is steph curry. How did you let him go . We are happy with steph curry and the success hes had. He is a fun player to watch. We are real why i happy also with the World Class Athletes we represent. Frankly, the everyday athletes we represent. Its fun. Its fun to see athletes perform, whether they are with nike directly or not. Youve had two big misses here. Jordan spieth. How is it that a company with 1 10 of the revenues of nike is getting the top players in the field . Like i said, we are very happy with the athletes we have. The athletes, the teams. I think we are incredibly well represented. These are the inspiration that drives the innovation that drives the product that resonates with consumers. That is what our model is about is connecting with those athletes. We have a saying at nike. Listen to the voice of the athlete. Thats always been critical it always will be. What also is front and center is this deflategate. I would assume you have to have an opinion on it. You are a major nfl sponsor. Im going to leave that up to the nfl office to deal with that situation. Im not informed enough to know where that investigation has gochblt i think its best left to the nfl. No comment on that one . No comment. What about wearables. Yesterday fit bit. You exited from the physical wearables. Yes. We remain committed to digital, connection to consumers in tracking and sensing through partner relationships, but also the complete digital ecosystem. How we connect in terms of commerce and communication. Then certainly sport experiences that we create. This is going to be continue to be a really important part of our future. Really central to our brand. What is the future going to look like between apple and nike . Tim cook sits on the board. Theyve got a watch with their own fitness capabilities in it. Where does that partnership and friendship go . It continues. We are excited about the apple nike relationship potential. Nike running is an app that can show up on your watch and is a great experience. If you havent tried it you should. We have over 60 million years in our digital community. We are continuing to develop apps and experiences. We are working with apple, but other partners as well. More from apple and nike . More from apple and nike. Two great brands. Lots of potential and opportunity and that continues. Finally, a general consumer question. Nike managed to stay strong post growth whats been this hard environment in north america specifically. What is the state of the consumer . We have 5. 4 unemployment but have seen sluggishness and not much boost from lower gas prices. We havent seen the effect directly on our market here in the united states. Our numbers here in the u. S. Are quite strong. I heard people talking about can you sustain north america for so long . That discussions been taking place for 20 years. But the category is it just leisure is strong or something across the categories across the portfolio. Converse, nike jordan very strong brands. The category offense helped us become sharper and more respect for each of the consumer segments by sport category. We expect that will continue. We are not seeing the consumer backing off. And excited about what potential exists in north america and other key markets like china and western europe. Weve seen growth in future orders. What are you giving the president . You have an exclusive shoe for him . Of course. How can you come to nike as the president , of course, or anybody for that matter and not walk away with Something Special . We have a one of a kind hybrid air force one that is amazing, i have to say, as a shoe geek. Special for obama. What color . Red, white and blue of course. Of course. They are shoes we made right here. Then the first mtm which is a collaboration between Michael Jordan Tinker Hatfield and myself, is issued. He gets the very first pair. We would like to see those. That sounds cool. Mark parker thanks for doing the interview. We know you have a busy day. The ceo of nike. Back to you guys at post nine. Nice stuff. Thank you so much. Coming up, huge rally after that jobs number. Juan hatzius joins us live. The job jugglers. The up allnighters. And the ones who turn ideas into action. Weve made our passions our lifes work. We strive for the moments where we can say, i did it we are entrepreneurs who started it all. With a signature. Legalzoom has helped start over 1 million businesses, turning dreamers into business owners. And were here to help start yours. The network that monitors her health. The secure Cloud Services that store her genetic data the servers and software on a mission to find the perfect match. And the mom who gets to hear her daughters heart beat once again. Were helping organizations transform the way they work so they can transform the lives of the people they serve. You can call me shallow. But, i have a wandering eye. I mean, come on. National gives me the control to choose any car in the aisle i want. I could choose you. Or i could choose her if i like her more. And i do. Oh, the silent treatment. Real mature. So you wanna get out of here . Go national. Go like a pro. A strong rally in london after the uk election delivered Prime Minister cameron the majority to govern for a second term. Wilfred frost in london. A surprise. Yes, a resounding victory for Prime Minister David Cameron. Doing far better than people expected. That has allowed markets to rally today. Ftse up over 2 . The reason because we have had a clear result at all. There was a lot of uncertainty running up to this vote. Of course markets dont like uncertainty. The shortterm confidence weve got allows us to once again look at the longterm future of the uk economy. Aside from the obvious need to pay down debt and threat of tightening Monetary Policy there are two key Events People have their eyes on. One is once again the threat of scotland leaving the united kingdom. Thats arisen again because of this huge surge the Scottish Nationalist Party gained in the election yesterday. The third Biggest Party now. An actual referendum on scotland leaving probably not on the agenda leaving because of that manl yort David Cameron secured. The referendum is one on europe. He promised to hold that by 2017 in or out of the eu with that great uncertainty for British Business and investment. It is over two years away so markets can probably not focus on it immediately. Long term threats still to the uk economy, but that is not something that will be worrying David Cameron tonight. He is able to celebrate a famous victory. Thank you for that, wilfred frost. Some of the analysis because you will have a okay. Up next, jan hatzius will join us. Call 1800royal caribbean or your travel agent today. The uk economy, but that is not good morning, im sue herera. Loretta lynch announcing the Justice Department opened an investigation into the Baltimore Police department to probe whether there were systemic violations of federal law by the citys police officers. Secretary of state john kerry meeting with the French Foreign minister in paris. Kerry is due to hold talks with Foreign Ministers of the Gulf Cooperation Council with the nuclear deal with iran high on the agenda. General motors says it will fall short of its goal having 500,000 gm vehicles on u. S. Roads by 2017 that are powered by some form of electricity. The automaker citing lower gas prices and surge in competition as some of the reasons why. Googles first campus for startups and entrepreneurs in asia opened in seoul, south korea. The company citing that companys flourishing startup scene and smart phone use. The area has been attracting venture funds from japan and silicon valley. April jobs report coming in right in line with consensus. Goldman sachs was predicting 230,000 jobs added in the month of april. Joining us now exclusively, jan hatzius, chief economist for goldman. Good to see you again. You were looking for 230, 223 right in line. Why were you expecting to be right there . It seemed us to the march report was probably too low relative to the underlying trend. I think march was plus 85. Even uglier than we thought. I think it was payback for the prior reports which looked really on the strong side relative to all the other information that was coming in on the economy. I think this one might be somewhat better read on how the economy is doing. Are we back on track . I would expect Something Like 200,000 from here on out. Maybe a little less than this report if there was an element of snapback there. About 200,000. The other question i think the bigger one in many peoples minds is what happens to the other growth indicators. Gdp very weak. Will probably be revised down further. The question is are we still in clearly above trend growth environment . Our answer is yes, but thats going to depend on the numbers well get. Wage growth still though remains mostly benign. That is what the number was today. How does that factor in how the fed is thinking about this now . Youre right. Wages are still only growing at a slow pace 2 . Maybe more than 2 if you take an average of the different indicators. I think that is still a good argument for the fed to wait longer. I think its a good argument for actually waiting potentially until very late this year or early 2016. That would be my personal advice. Your advice would be june no wage growth. June is very unlikely. My forecast is september with a strong risk on the side of a little later. I think there is a very good argument for waiting later. How do you get to that conclusion . You are in the past youve been transaction al transactional. When the fed says its data dependent, you believe what the fed says. Earlier this the week it was suggested the fed was willing to run hot for a couple of quarters and not raise rates. Which is kind of what you are saying. I dont know where jeffrey got it from. I would be fascinated to know where you got it from. I think it makes sense when you think you still may have quite a bit of additional labor market slack. There are some indicators that suggest that. The underemployment rate is almost 11 . Thats a couple Percentage Points above what would you normally expect in a full year labor market. Youre seeing Price Inflation is lower than the target. You see wage growth is below the normal range. That is not the rhetoric from them, is it . Youve got to look at decisions they are likely to make. What they are telling you is theyll wait till the end of the year. Right. My forecast is september. I am saying there is a strong argument for waiting longer. I would say i look at both. I look at way think the economic information would suggest in terms of appropriate policy. That obviously factors into what my forecast is going to be. Then i look at what theyve done. You said you felt we now go into 200,000 job growth a month. You felt that was acceptable. I think thats if i look back at the end of last year september, october november we were generating 280,000 jobs a month. Now you think 200,000 is okay. Why is that . That is a slowdown. 200,000 is my forecast. 280,000 is better. Its undeniable the economy slowed from where we were . Yes. I think the economy has slowed. Late last year the economy was growing at a rapid pace. Didnt fully show up in gdp numbers. When we look at our pressures that basically aggregate a whole bunch of different indicators, the economy was growing very fast. It slowed from there. It would be better if we were still growing at 4 rather than 2 or under or 3 or under 3. You say it makes sense for the fed to wait. Charlie evans told Steve Liesman yesterday he is looking at 2016. You know there are so many people, maybe a growing chorus who say it makes no sense for the fed to be at zero with 5. 4 Unemployment Rate, given where we are in the cycle even as weak as the economy has been, there is no way they should be at zero here. How do you respond . I think a lot of that depends whether you look at the changes or you look at the levels. So the changes in general, although the growth rate has slowed down as we just discussed, generally the changes are positive. We are growing. We are adding jobs at a pace above the underlying trend. Gdp will probably bounce back. We are making headway. Thats the argument people would say we ought to be moving off zero are making. I think what that forgets is that the level of employment the levels relative to the potential of the economy are still somewhat depressed. I think there is a good argument for waiting until they are less depressed and only move at that point. Jan good to talk to you as always. Especially on a day like this. Thank you. Jan hatzius with goldman sachs. Lets send it over to dom chu. Lets talk chicken. Shares of bojangles surge inging 10 . They sold 7. 8 million shares priced at 19 a piece. Thats the high end of the expected range which was up from the initial 15 to 17 range. This ipo raised 147 million. The stock trades under the Ticker Symbol boja. On the nasdaq first trade came in at 26. 50 a share when the stock opened shortly after 10 00 a. M. Eastern. Dow up 246 points. Big guest on the way. David faber sits down now with cbs Ceo Les Moonves. Theyll talking about earnings, the future of tv and streaming. My feet felt so heavy at the end of the day. They used to get really tired. Until i started gellin. I got dr. Scholls massaging gel insoles. When theyre in my shoes my feet and legs feel less tired. Its like walking on a wave dr. Scholls massaging gel insoles, im a believer the Options Market calling an end to the rally. Warning investors have become way too complacent to the energy stock. Trading nation. Cnbc. Com. For trading never stops. So open an account with schwab. And when a market move affects, say a Cloud Computing stock youre holding, we can help you decide what to do. With tools that help you see how market activity is affecting your positions. So when the time comes to decide whether to scale in or scale out. You can make your move wherever you are. And start working on your next big idea. Shares of cbs moving slightly lower after reporting earnings last night. David faber live with the ceo. We are here at headquarters. Our headquarters thank you for coming over here. Thank you. Its good to be here. I feel like im at Enemy Territory here at the home of nbc. We certainly dont feel that way. I know. We walked through saw Jimmy Fallons people. Jimmys great. Nbc is great we love competing with them. Im glad you made the trip a couple of blocks. Lets start off you reported earnings last night. A good number by most measures. The stock not doing much today. People are focused on the up fronts as perhaps they should be and would love to get a take from you on what you are seeing there. There have been pockets of weakness, it seems, in terms of advertising sales. How are the upfronts . We are excited. Next wednesday is our upfront presentation. The other networks go a couple of days before that. We are anticipating nice increases in cpm growth. We anticipate more volume. We think broadcast is the only safe bet out there. A lot of conversations about Digital Advertising and we are an important player in that. We have a lot of digital sites. I interviewed barry diller about a half hour ago. He was talking about Digital Advertising as being an unending sea, therefore, you never really get the money you want. Its true. There is so much available. There are so many sites. Millions of websites and millions of places to put your money. Its an unending supply of inventory. Network, theres scarcity there are specific numbers attached to it. You know what you are getting. No major product can ever be launched without the use of Network Television. Thats why broadcast is always great. Always great. Always great. Despite what seem to be challenges. You managed through these years, and we talked about it many times to find so many new revenue streams. Amazingly enough what is it 40 of your revenues now didnt even exist five years ago . Our world is changing so rapidly. The most exciting thing for us, and we talked about it on the call, well talk about it at the upfront, right now with our current programs on the air at cbs, with dvrs there are more people watching our current season of shows than watches 11 years ago. The thoughts of the demise of Network Television have been greatly exaggerated because once again, you need to be a network, but you need to move forward with the digital proposals and different ways to receive your content. We are in the midst now of what seems to be seminal change and what it people watch content. We talk oftentimes about the bundles starting to change. Plenty of people take it. Does that question your Business Model . Even people sticking digital antennas on their sets to get cbs free. Does that become a threat . Frankly, the smaller bundles, for us and we are one of the few companies that feel that way because we dont have a lot of smaller cable channels. We are cbs and showtime. Those are our major brands. In a smaller bundle like verizon is talking about or sony is talking about or perhaps apple, as well. The smaller bundle we will be a more important part of it. In a 20channel universe or a 500 channel universe you have to have cbs. You cant live without us. In a smaller bundle perhaps where people are paying more for the channels they want but less overall, we are going to get a bigger piece of that pie. No matter how you receive your content, you have to have cbs. Thats a nice thought. Its a nice place to be in the world. It hasnt stopped you going down the streaming work. Cbs allaccess. Started only recently. What kind of traction are you seeing . It started last october. Its only been up for six or seven months. We are extremely pleased. We are now signing up a number of our affiliates. You can receive the whole package including Live Streaming in 55 of the country. The majority of people are using it for catchup of shows currently on the air, this season, past seasons. The number which we are not going to report are better than we expected. As i said we dont care whether you watch it on cbs or cbs allaccess or dvr, we are still getting paid for it. How much am i paying . 5. 99, a bargain. People are willing to pay that number or above what you might have anticipated. Lots of people are signing up for p it and shows the value. If we are getting 2 elsewhere, people are paying 5. 99 for more of the cbs product. Something that we havent talked about is in 2016 there is a spectrum auction coming up. At least as of now this. Could change. Start selling off broadcast spectrum to wireless companies. Seems to be unsatiable the appetite. 13 are cbs stations or cw or independent stations. We are going to look at the possibility of selling our spectrums. Not in the cbs stations necessarily. The numbers you hear are astronomical for smaller television stations. Somewhere in the neighborhood of 200 million plus. Of course we are going to explore the possibility of being part of that. Yet another potential revenue stream. Another potential revenue stream that didnt exist five years ago. Then there are people who will say, great, youre managing to keep up but revenues overall dont grow that much in a way you increase eps is by shrinking the amount of shares outstanding. Buy buybacks are an important part of what you do. Is that the way cbs continues to grow . Our Balance Sheet is in great shape. Eps has grown 21 straight quarters in a row. We are succeeding by earnings earnings are going up every year as well as share buybacks. We are not deeply indebt. We are not overleveraged. We have the ability to invest more in content which is important us to. We are in great shape to do whatever we want to do. Bringing value to our shareholders is important. Share buybacks dividends remain important. Also investing in our content remains important. One of those key shareholders is your chairman mr. Redstone. There are reports yesterday he felt he needed to respond to saying i have not decided upon my death, and may it be many many years of course from now, who is going to take over as chairman. Is that your understanding . He also said which we believe, there are boards of directors at both companies that will decide what the future is. Sumner has given me the support to run this company. Hes been very expertive. Cbs has been running really well. We are excited about the future and we hope he lives another 50 years. He is 92 or so years old. Not yet. He will be 92 in a few weeks. You feel comfortable if in fact when the day comes . We dont talk about when the day comes. I feel comfortable how cbs is now and how it will be in the future. A day that has come or is coming is letterman signing off. Sad day. It is a sad day. Eight more shows left only. You feel confident colbert can pick up where he left off . No question about it. We are sad to see dave go. He legend. But Stephen Colbert is phenomenal. People who know him, know the show is going to succeed. Our 12 30 show is doing extraordinarily well. So we think were going to have a great latenight program. Has fallon got anything to worry about . Fallon is spectacular, but hes got plenty to worry about. And mayweather and pacquiao you were intimately involved, reports would say, in making that happen. Theres people who are not happy and theres litigation. Are you amongst them . I was the mediator i brought both parties together and i acted as a referee, as it were. Put some of the, the issues together and i was, i was the one who was entrusted with it by both sides. And you did it. Which nobody had been able to do previously. It was terrific that the fight came together. We didnt know about any shoulder issues, i was there in the second row, i saw two very welltrained athletes going at it. One was better than the other. He won the fight, we dont know of any issue with the shoulder. Pacquiao threw 400 fewer punches than he typically does. Mayweather is hard to hit. Are you concerned at all about the litigation . I dont know anything about it, im not going to comment on the litigation. We didnt know anything about a shoulder problem and we saw two pretty good guys. I wish i had been there. Leslie, appreciate you taking the time. David, thank you. We send it back to the nyse. Up next the winner is revealed. The jobs report is out. Were you able to nail the number . If so youll win the mug signed by the entire squawk on the street gang. Find out if youre the lucky winner next on squawk on the street. Thank you for being a sailor, and my daddy. Thank you mom, for protecting my future. Thank you for being my hero and my dad. Military families are thankful for many things. The legacy of usaa Auto Insurance could be one of them. Our worldclass service earned usaa the top spot in a study of the most recommended Large Companies in america. If youre current or former military or their family, see if youre eligible to get an Auto Insurance quote. It took Tim Morehouse years to master the perfect lunge. But only one attempt to master depositing checks at chase atms. Technology designed for you. So you can easily master the way you bank. Theres some facts about seaworld wed like you to know. We dont collect killer whales from the wild. And havent for 35 years. With the hightest standard of animal care in the world, our whales are healthy. Theyre thriving. I wouldnt work here if they werent. And Government Research shows they live just as long as whales in the wild. Caring for these whales, we have a great responsibility to get that right. And we take it very seriously. Because we love them. And we know you love them too. Just because im away from my desk doesnt mean im not working. Comcast business understands that. Their wifi isnt just fast near the router. Its fast in the break room. Fast in the conference room. Fast in toms office. Fast in other toms office. Fast in the foyer [pronounced foyyer] or is it foyer [pronounced foyyay] . Fast in the hallway. I feel like ive been here before. Switch now and get the fastest wifi everywhere. Comcast business. Built for business. 223,000 jobs created in april. Our winner is a repeat winner. Greg deaver joins us from las vegas. You won two years ago, you do this is a lot, i imagine . Ive been doing this, ive been participating in this contest since guys started. So, 23 was3 was kind of towards the consensus . Personally i do a shotgun guess. So whats a shotgun guess . Well basically, i use a, to put it in journalistic terms, its a statistical interpretation of a random set of numbers, i put it in a realm of where it should be. I see. I see, so are you invested in the market . That sort of level you might have eached we get this sort of rally today. Oh yeah im fully invested in the market. Some people might call me nuts but yeah. Why do you say that . Well because theres the little c word, we might be due for a correction, but i think we might be going a little higher. Amen to that for a lot of people. Congratulations, you get the mug, jeff deaver joining us from las vegas. A guy who won two years ago. It is time virtually for squawk alley, lets send it over to john ford. To see what we can expect. Were going to be talking more jobs and the markets. The dow is up 250 points the nasdaq up better than 1 and fitbit has filed for an ipo, what do the companys numbers look like . And an 8 billion drone maker is going to join us live. You might keep the drone flying, all of that and more coming up on squawk alley. [ girl ] my mom, she makes underwater fans that are powered by the moon. [ birds squawking ] my mom makes airplane engines that can talk. [ birds squawking ] my mom makes hospitals you can hold in your hand. My mom can print Amazing Things right from her computer. [ whirring ] [ train whistle blows ] my mom makes trains that are friends with trees. [ train whistle blows ] my mom works at ge. Good morning, fitbit headquarters its 8 00 a. M. At their headquarters 11 00 a. M. On wall street and squawk alley is live. Good friday morning and thanks for joining us here on squawk alley. Carl quintanilla is on assignment, with us is kara swisher and john ford here at post 9 theres a lot to talk about in tech. But we have to start with the market. Stocks in fullon rally mode since they opened after the u. S. Added 223,000 jobs in the month of april. Bob pasani is on the floor with some of the biggest movers on ha is shaping up to be in the markets for the dow and the s p since the end of march. Whats impressive kayla is the breadth of the rally, 41