Construction employment barely rose. Average howerly earning up 0. 3 . It does raise the debate what about the fed will focus on here. Not the right number. You need you always want that number just a little bit better than what people are okay look for, but not so hot that the ped that people come on steve put a microphone and said, yep. This is not the number that a bull would want. Theres just not enough strength. And its unfortunate that its coming at a time when were getting numbers out of china not as strong as the previous month. Were seed the commodities coming down. Maybe some of them were juked up by chinese excessive buying. Scenario that justified a very big run in the industrials is not is in act as it was pch and the most recent pull market in the Consumer Product stocks is looking like the right one for now. A very narrow one. As you said, time to go back to the clorox market. I cant believe it is. But it is. They do well in this environment. A lot of companies, were looking at them and saying, how the heck did that get up there now . How did weatherford get up to 8 . How did free port get to 14 . I mean, theres just lots of companies. People are saying, wait a second. Oil is going down. Baltic freights are going down. Cop sir going down. Gold is doing the wrong thing, going higher. We could have used job growth. How much more would have been fine . I mean, we have reviced down a little bit from the previous month as well. Its narrative. Its a narrative. Secretary perez will join us and say the same thing. Well look at it over time. Its one month. But hes a nice man. Hes he has to say nice look, hes not secretary perez, do you think this is good for United Technologies and honeywell . Hes not that kind of guys. Hes not taking these numbers off its not his job. All the yields are falling. June seems to be off the table now. Yes. Right. Ten to five percent. Theres some job growth. Not enough to fit the thesis of whats gone on since the february bottom. We overshot to the high. I talked to the secretary this weekend. And, you know, the secretary doesnt hes not an active hes not a hedge fund. Hes not a Hedge Fund Man amger. No, hes not. Zplun like even else. He wasnt at the conference presenting five boring ideas that do nothing. Hes actually doing his job. Hes doing okay. It doesnt fit the thesis. Doesnt fit the thesis for strong retail. Retail has been very, very weak. A day of reports of costcutting at j. C. Penney. The job cuts at caterpillar. Its all piling up . The bull market that was in the industrials and the commodities, which seemed to have such legs, not that long ago, is not in tact right now. That because of the way that the curve is going, the banks chrks had been such good participants since oil bottomed, are just going back to where they were when we first found out they had oil debt that we were worried about. 40 of the s p. Right hering might be poorly positioned. Thats a lot. And you mentioned retail. Which i think is worth coming back to. Lmt brands. The steam weve been talking about. Amazons take so to speak and everyone elses loss. Do you have the mall . I have the mall. You have the mall . This is the stores i want to go into. The piercing pagoda. I go by it all the time. I dont walk through nordstrom to get to foot locker. Its all happening. The traffic. L. Brands was never amazon. Cow cant try on that stuff for victorias secret. Und undergarments dont sell as well. Dont smirk at me. Amazonable. But, we always thought there would be traffic at the mall. Heavily endebted players at the mall. Thats behavioral. Not something connected to the 160,000 jobs. Its not trumped. A lot of jobs, look, if everybody got a job in the country, there would be leftover people to go to the mall. You look at jim stewart. I dont know if hes going to be here today. He is. Maybe people that would have gone to piercing pagoda are on facebook piercing their brains are nothing. Call of duty. Candy crush, grand theft auto. Facebook. Instagram. How about homework. Im on this last night. This is come and watch these dog videos. Dog videos. Dog videos . He goes to get makeup, i give him a quiz. Did you sew endo . Thats because im not watching Julia Roberts and George Clooney sing in the backseat with gwen stefani. James gordon. That guy is good. Did you watch him at all . He called him out the other day. I want to be in the backseat of his car singing with that guy. Ky carry a tune. We can do browneyed girl. Its been a moneymaker. A money monster. If i told you a year ago, up that number, you would have been i would have been. Its an okay number to. Every bank stock in the country was betting on at least two rate hikes if not four coming in. Now maybe none . So how do we value a bank . Bank of america has just literally gone from 15. 25 down to dlsh did you see this . How much its shed in the last few days. I have. What do you think of that . Makes me wonder how much value might be there. Or are people going to ever start to push to have it broken up again . I had a conversation with somebody about it the other day. Theyve spent a lot of time on it. Talked about the value of all the businesses. Including merrill lynch. At what part will that start again . Ways to carry the cash. Im just concerned when i see the banks go down, fairly i dont want to say every day. But pretty consistently, we forget that this whole rally started, this february rally started with the oils. Went to commodities. To banks. To industrials. Its being repealed. Im concerned, where she stops, nobody nose. We can all go back to clorox. The post cereals. Look at these post holdings. Post. Its king midas in reverse. Earnings to get to. Mobile Payments Companies squares on track for the worst day since going public. Gopro did the same. Revenues were the same. Yelp, a bright spot. As for square, jack dorsey told our kayla on closing bell hes optimistic. Take a listen. The core business is really strong. I mean, the Small Business economy and moving up market toward mediumsized businesses has been our sweet spot. Were seeing a lot more growth. Opportunity. And, we have this pan its aic new reader as well. That allows any one of our sellers to accept apple pay, samsung pay, android pay. And emv. As everyone knows, the world in this market is moving towards chip cards. We have the fastest implementation out there. Square does raise their guide markets not giving any credit for that. No, im pessimistic about his optimism. Theres a big theres a big lockup expiration coming in that. There was also some a little more risk to the actual lending part that they have that i didnt like. They mention, listen, we have low default rates of 4 . The National Average is 2. 9 on credit cards. Theyre not low. They said they were low. The squenl growth wasnt great. 4 . The Square Capital business. I think that the insiders are up nicely. Given that the stock was priced at nine. I think the inside lers take advantage of the lockup expiration and go to town on it. I dont think you should be near the stock. I dont. Theres a web bush piece. Saturation is good. Downgrading. I thought this was a very strong, strong, wellreasoned, well rigorous argument about why you have to sell the stock right here right now. You remain optimistic on visa, mastercard. One of the things jack says, look, were switzerland. Everyone is switzerland until they turn the guns on. Paypal. I dont think dan shul man is out to git square in any way. Analysts are saying paypal will come after them pip dont like the Capital Division that they have that does lepding. Lending is hard when the economy starts going down a little bit. I dont like this caviar business that they have. I know is just okay. But really is is discouraging that you have a big lockup. Unless they declare, were not out of here, then row have a fitbit situation cooking. At what point does the pressure build as a result of the lack of progress at both companies he runs that you have to make a choice . Sor is that not the point there. Others have done it. Elon musk has run a number of companies. I dont want to beat a dead horse. I just think these are challenged situations. You need a guy there 24 7. You cant be in two places 24 7. Both companies are challenged. If they both were first lace teams, you could do it. Captain of the football team, baseball team. That could happen. Hes not bo. Hes no bo jackson. And i just look at this square situation, think they need fulltime help. I dont like this situation. Starbucks didnt like it either. True. A lot of proms made. That partnership. Didnt happen. When we come back, tim cook said to be heading to china for meetings in a critical period for apple. Also ahead, reaction from the white house to the jobs number today. Labor secretary thomas perez will join us live. Take another look at the premarket. Stocks down for a second week. More squawk on the street after a break. Mary buys a little lamb. One of millions of orders on this companys servers. Accessible by thousands of suppliers and employees globally. But with Cyber Threats on the rise, marys data could be under attack. With the help of the at t network, a network that senses and mitigates Cyber Threats, their Critical Data is safer than ever. Giving them the agility to be open secure. Because no one knows like at t. Apple ceo tim cook will head back to beijing later this month. Thats according to reuters. Hes said to be planning meetings with high level officials. Just last week, apple reported its First Quarterly revenue decline in 14 years. We no longer have a position at apple. You worry a little bit. Maybe more than a little about chinas attitude. It in what youve been seeing. Jim, does a visit take care of some of that . Well, i mean, you want to be sure that that imovie, bok business gets back online. They have the committee in charge of all media. This is a communist country. They are in charge of everything you read and see. They have to get on the same page. Tim cook said that would happen. He was talking about hong kong numbers. The big dropoff. I looked at the South China Morning Post this morning. The numbers have gotten better in the last month. Est erk estee lauder said this. And tim cook said it. Hong kong is the source of tremendous decline in all merchandise. Everything is slowing down. Some people are saying april is better. They do need to get back online for the movie and the book. They need to see that the partys got no real problems. You cant have big numbers if the party doesnt like you. And they have a lot of jobs, china. A lot of jobs, apple. A lot of people to put to work. Row have to get right with the party. I know the latest data had in the week of april 11th, 770,000 iphones were activated Mainland China each week. That was down from the first week in april. As well. People track these things week to week to week. Im getting numbers on the s. E. , the new device, smaller but more powerful, that indicate parts for that are up. Thats from a Conference Call yesterday. You have these dueling stories. People want to take the negative story in this environment. It would help if this weekend, you saw china was back online for movies and books. 27 of iphones are sold in Mainland China. 27 of their sales. And 20plus decline of hong kong is significant. If hong kong comes back lets mention win. Revenue meets the smallest macau rev new decline. Maybe this has hit bottom. I think it has. Get a copy of every time at the end of a Conference Call, steve wynn, one of my heroes, he says, very little respect for the integrity for the trading of exchange of most stocks. And the s. E. C. Has failed to deal with traders. He uses the flash boys, why . Because he says the hedge funds run ahead of him. Theyre allowed to do wit the highfrequency trading. He has an indictment of the short serls. He bought 100 million of stock. He says he goes in every time the short sellers knock it town. The casinos are regulated much better. The stock markets get more volatile and stupid as a gambling game than ever before. Hes saying casino gambling is much more regulated than stock gambling. He says, i take advantage of it. Its fine. When they drive the stocks down for reason that are irrelevant, he goes in and buys. But he has an indictment of the s. E. C. And short sellers. I was cackling. I was cackling. It was so brilliant. Steve wynn. Not afraid of taking on anybody. He does not play for dinner. Every day, he gets up and says, today is the day i tell the truth. He says that casino gamblingambf they had the same regulators in the s. E. C. As in gambling, our markets would come back. They would stop hitting on 19. Hit me. Is that your number . Theres very few cards that work when you hit on 19. Got it. It was a black jack reference. Well count down to the opening bell. Take another look at the premarket. Were back in a minute. Anything worth pursuing hard work and a plan. At baird, we approach your Wealth Management strategy the same way to create a Financial Plan built to last from generation to generation. Well listen. Well talk. Well plan. Baird. All right. Lets do it. We have a mad dash. Its friday. Youre looking just fine there with your red tie. Really . I dont know. Ferragamo. Yes, oil derricks. They have to get back to 45. You didnt get a recommendation on the tie from yelp. Yelp delivered. I know earlier this week, at the eihorn was talking about. Looks like he made a welltimed buy. What hs really important is that the mobile athe option, once you get mobile right instead of desk top, you can really start doing well. Theyve got mobile right. One of the things thats happened. There have been notes of a tug of war. Theyve triumphed over that. The app is being downloaded. The ecosystem of yelp. And the local Revenue Growth is up 42 . Youre on your handheld, going down the street, saying where can i get the best corona and a couple of good fish tacos and maybe some short rib tacos. Im not paying right now, so im not going to get it. You want to be in the cue. All right. Lets stop there for a second. Youre not paying. Youre not in the cue. Why can i believe this the results if its all about who is paying and who is smot . Look, the cue comes up. If youre lazy, you take the top. If you want to scroll down, the yelp is fine. Tons of reviews for those who dont pay. The local merchants are liking it more and more. Thats why you get the 42 revenue jump. Theres nothing wrong with paying for being at the top of the cue. No. Googles made a lot of money that way. Theyve had it. Congratulations to stoppleman. I have been critical. 42 Revenue Growth for local, thats a huge win. This stock, damn it, theres another company that starts with the y that should buy this. Ive beaten that dog so much that the Health Company is worried about it. Stop beating that dog. Okay, good. Glad we got that settled. Were going talk about a lot of other things. Including endo, down about 27 . Potentially an impact on value yapt. Well get into that when the opening bell comes a few minutes from now. Youre watching cnbc squawk on the street. The opening bell in about 90 seconds. Free markets weak. Nasdaq down 10 of 11. Some of the results last night probably wont help. Gopro delaying the drone. It was announced by the way at the koch conference almost a year ago. Bad karma. The karma drone. Some apologists saying, why would you want the drone mid year . Implying that its actually okay that its delayed. These are pens that have to have new stuff to constantly feed the ecosystem. This is one i still cant its getting in that pantheon of companies that you just cant really zrks ynga. Too early . Too early to buy dopro. Zynga was okay yesterday. Zynga, linkedin, yelp, and etsy. Names that, six months ago, good luck. They revamped. If you can make your mobile offering palatablpalatable. Thats what zuckerberg taught us, right . [ bell ringing ] theres the opening bell. Ands p. The Alzheimers Association and miss usa 2015, on liver livia j. I wanted to ask you, do dproi what you were doing six years ago today . Six years ago today . I think we have video of it. Flash crash. Telling you to buy proctor there. You remember that crazy midday session. Jim coming on talking about proctor. I said, go buy proctor. You made like 0 points in about seven minutes. You could a lot of people were saying, something is wrong. Greek earlier riots that day. I said listen, proctor went from 80 to 30. Go buy some. When i was finished talking, the stock was back. The market never really recovered in the terms of the number of people coming back. Thats when you realized this asset class is what steve said about it. It was impugned for quite some time. Lets not forget the miniflash crash we add that day not that long ago. Verizon down and ge . That was the day after the fed governor on friday. August 24th . That was a big one. Not a flash crash in endo today. Gnat is just a reflection of what people perceive to be the fundamental value of this pharmaceutical company. Not because of the earnings. Because of the guidance. Its a name i have mention many times in the last few years. In part, talking about inversion some time back. They got together with paladin in canada and ended up in ireland. Nay embraced the strategy of acquisition. Hoping to use an everrising stock price. They brought par pharmaceuticals back in september. It was completed september 28th. It was 18 million shares of equity and 6. 5 million in cash for par share holders. They took on an enormous amount of debt at endo. The market cap now is well, well below what they paid for par. In fact, its not even half of what they paid for par only seven months ago. It was the guidance, jim, that has disturbed wall street at this point. Ill quote from the securities. We think managements credibility has been ir rep r repairbly damaged. Theyre talking about voltarin jell competitors. Legacy business delays and the fda action related to that. And, i would remind people the company is five timed levered, as a result of the par deal in part. This is ugly. It would spill over a little bit, one would expect, in the rx. Down. 5 . Less than two months ago. Less than two months ago, they were reafiremening 5. 85 to 6. 20. Now theyre at 4. 50 to 4. 80 . It goes to 3. 8 billion. 4. 5 to 3. 8 billion on the low. People will say, this really raises eyebrows. They mention the voltarin jelge. This is a nothing little drug. Is that like the drug youre worried about. I have to tell you. I mean, i had an operation on my hand. Rub a little in. Its like its like bengay. We didnt see the voltarin generic coming as early as it did. I did. Best case, into 2017. How could i, a patient, see it coming and them not see it snnlts i dont know. I dont know. The delay in the other programs at the fda that may have had an effect on the qualitasebased business. Something just doesnt add up the. This is a puzzle. Put it in the puzzle category. Nice guys, though. Yeah. I did notice really quickly, jim, a new position in the Charitable Trust and xpi . Yes, this is a company that we saw them on air. This is the company that is, i think, going to end up being, perhaps arks long with broadcom, maybe the largest semicon tukter business. Its not department on cell phones like so many others. Youre not going have to monitor cell phone numbers. Internet and cloud is growing fast. This is a company that caught free scale. It gives them a hammer lock on automotive. Every time you see stories about gm doing a driverless car, this is the Semiconductor Company that has the most. The new bmws are filled with nxpi equipment. Their semiconductors are where Intel Companies were 20 years ago. Brian, the ceo of intel, everyone passed on it. They made the money. Theyre near field communications. I push this, you buy at walgreens, thats their technology. I just bought you. A simulation of you. How much is that going for . Ill check on ebay in a moment. Nxpi is you have to be in that. Well keep an eye on that. Lets get back to todays allimportant jobs number. The Labor Department reported 160,000 jobs added in april. The weak ens in seven months. Unemployment holds steady at 5 . Joining us is u. S. Labor secretary tom perez. Good to have you back. A pleasure to be with you. Nothing in the release about outlying variables, like a verizon strike. Is there something we should consider that explains the number . I think its a solid number here. 74 months in a row, private sector job growth. 14. 6 million job. We saw solid wage growth again. So annualized wage growth is about 3. 2 . Whats important to me about this report and the trend data that we see is not simply the numbers. But whos getting jobjobs. We have the percentage of longterm unemployed at the lowest level in seven years. What that tells me is that labor markets continue to tighten. Employers are looking at people that they didnt used to look at. Twothirds of the decline in the Unemployment Rate over the last year is from the ranks of the longtermed unemployed. Those are solid developments. They tell me that, you know, we are now reaching that point where, employers again have to look at other people. And thats why, im heartened by what they is sat is saying. Ive spent a lot of time with the longterm unemployed. Theyre getting back in the game. We still have work to do. The longterm Unemployment Rate is still unacceptably high. Im heartened by what im seeing. It remains the weakness in seventh months, should investors be expecting more modest numbers through the course of the year . Last year was the second best month of job growth in the recovery. Second to the year before last. And last year, we had three different months where we were below 160,000 jobs. And look at what we did. Over the last six months, we have averaged about 220,000 jobs. So, uh, you know, when i have a good month, i never get too giddy. When i have a month that doesnt match the expectations some had, i never get too down. Im always informed by the trend data. The trend data shows weaver moving in a solid direction. Youre never going move from 5 unemployment to 4 unemployment as fast as you moved from 6 to 5 or 7 to 6 . We see tradeoffs between the quantity of jobs gained and other important factors like wage growth. The longterm unemployed getting in the game more. You look at the u6. The broadest measure of unemployment. Thats down 1. 1 over the last year. That mean that marginally attached people are coming back. Discouraged workers are less discouraged. Thinks things of that nature. 5 unemployment is still pretty darn good. Not where we want to be, but its a hell of a lot better than the calamity howlers in the Republican Party were predicting a few years popping. Mr. Secretary. Good to see you. G jim cramer. Good to see you. Indiana they had the primary. I know theres a video that event viral. The United Technologies, where theyre saying listen, we have to do mexico. Im trying to figure out, is there a way to have a strike force, where as soon as Something Like that happens, the government says, were in here, were going to help you. This is an important plant, important city. I looked at them and said, wow, they just woke up and found out their jobs going to mexico. You would love to have a government that is so pro takt active to do something about it. We have been working closely with, you know, companies and communities across the country. Where, we see, you know, danger signals. Sometimes, you know, when we see these tanger signals, were too late. But we have had a lot of success making sure that things dont happen. And frankly in a lot of cases we have been able to prevent things from happen ppg we have to continue to be vigilant. The president s been doing that. Trying to create a level playing field. Make sure we reward pidss who Keep Companies here in the United States. You saw what the Treasury Department did recently on the inversion issue. Because, again, we should the rewarding businesses creating u. S. Jobs. Thats what its all about. Secretary, david faber here. Minimum wage. Number of states have been increasing the minimum wage over the last year. I was listening to dr. Kruger say, 12 an hour works well. 15 is unchartered territory. Might have negative effects. Do you have an opinion on this increasing Movement Toward a hire minimum wage could have a capping effect on job growth . Well, again, were at 7. 25 at the federal level. Up with thing we can all agree on is you cant live on there are 7. 7. 25 an hour. The republicans in congress havent gotten the memo on that. We have to increase the federal floor. Theres a proposal that bobby scott, patty murray, elizabeth warren, others and the president supports it to take the federal floor up to 1. I think straights ought to have the ability and localities to go higher. The fight for 15 movement was something that people laughed at two or three years ago. Its no laughing matter for people struggling to make ends meet. Now, roughly, you look at the state and local governments going to 15, were now at roughly 0 of the population living in state and localities moving to 15 and do you think it has an impact on perhaps retarding job growth . I think you can look at the ed in Washington State. Washington state for the longest time had the highest state minimum wage in the country. Dating back to, i think, roughly the mid 90s. And there were a number of folks who said, you cant sustain that. Youre going to see higher Unemployment Rate. They dont have a tipped credit. So if youre work in the hospitality industry, or in the airport, people needing a wheelchair, there was no tipped credit. Washington state did well. Frankly, if every state had the level of Economic Growth that Washington State had, we would be in darn good shape. You have got about 15, 20 years of experience over there. And, the reason you see this movement in the state and local level is because the Republican Congress here has been intransigent. Theyre not listening to the people that were there before them. Newt gingrich understood that the minimum wage should be a bipartisan issue. The refusal of the Republican Leadership in washington is triggering this prairie fire. Now its an out and out wildfire. Of folks who are saying, were going to stand up for the basic proposition that if you work a fulltime job in this country, you shouldnt have to live in poverty. If people want to complain about the fight for 15 movement, they ought to go to the chamber of commerce in touwn. And the Republican Leadership. Were going continue the fight for washington here. . Finally, im reading from the a. P. Hillary Clintons Campaign has a team of lawyers poring through information about a lengthy list of democrats for vp, among them labor secretary tom perez. Your thoughts . I know nothing about that. Were going to continue to work hard to bring the Unemployment Rate down here. To make sure everybody has access to opportunity. Thats why i love my job. Were making progress. But we still have more work to do. Mr. Secretary. Always good to have you. Thank you so much. Good to see you. Have a great day. Dow, meantime, down 12 points. Bob is on the floor. Heying bob. We had a weak open. Take a look at the sectors here. By and large, todays support of what we have had all week. The april retail Sales Numbers here. We have just turned positive on all the sectors. You can see the slow growth. Look at floor. This is one of the big construction engineer companies. The projects are getti inting dd if the oil, gas. All over the place. Same thing happening in europe. Everyone from rollsroyce, the banks. The commodities. Glencore, rio tinto. We have had mid single digit declines in south africa, pra zil, ruche brazil. Russia. The s p down. Arcelormittal. Hopefully, there might be a bottom the prices have improved recently. Well see. Thats the hope for a pot tom. By the way, europe is having a much tougher time. Theyre earnings expected to be down 11 . Ours town 7 . Its all about the search for the bottom. In earnings and oil. Thank you, bob. Real quickly. Wanted to update you. The contest to acquire medivation. Yesterday, sanofi saying were ready to go to a written consent to throw out the board of directors. Last night, medivation reported earnings. They missed on eps. Versus what had been a 23cent estimate. The ceo said, were all about value. We and our board believe we can deliver significantly more value by executing on our plans. We think their 52. 50 offer is completely low ball. We think were going create a lot of value. Many believe that value will be created by a sale of the company, not through their attempts to do it on their own or independently. They also point out, its well below the 52week high. Something Companies Want when they enter into discussions. They say, they didnt wait for us, the board, to complete our evaluation. Most importantly, sanofi acting aggressively. Before a number of key milestones come their way. Its the third time in five quarters that the company missed on ips. Second time missed on revenues. Theres been a revaluation of the sector. The question is where the stock will go. Many believe theyll be going to an auction. When you talk to alex at johnson johnson, one of the thing hes most proud of, he didnt go in a buying spree. He backed out, didnt get them, or just chose not to. To be on the sidelines. The valuations have shrunk. Sometimes youre a hero by keeping your bat on your shoulder. The story, endo. The ceo of that company was the president of valiant in 2013. Lets get to the bond report. Rick . Wow. You know, we used to have a big uturn on lake here drive. It was the curve, right . We did a major uturn in treasuries today. Look at the twoyear note deals. Down to 67 . See where its at, 72. That might not sound like a lot. It happened quick. The tenyear, we were down at 170. Were now a t 176. Heres something fascinating. Lets open the chart up to the era where twoyear note yields made the alltime note yield at 15 basis points. September of 2011. Let start the chart out in august. If you keep the same chart, the same for 30 year. The long end made the low in january of last year. That is very important to curve implications and the cow pons that show sbren interest because they have enough interest payments. The last one, the dollar index. It was getting squashed for most of the year. But were having a fourday comeback, as evidenced by the oneweek chart. When we come back, Pulitzer Prize winner jim stewart will talk about facebook, i believe, his upcoming column in the new york times. I am benedict arnold, the infamous traitor. And i know a thing or two about trading. So i trade with e trade, where true traders trade on a trademarked trade platform that has all the. Get off the computer traitor i wont. cannon sound mobility is very important to me. Thats why i use e trade mobile. Its on all my mobile devices, so it suits my mobile lifestyle. And it keeps my investments fully mobile. Even when im on the move. Ahhh. Anigoing to clean betterans fuelectthan a manual. Was he said sure. But dont get just any one. Get one inspired by dentists, with a round brush head. Go pro with oralb. Oralbs rounded brush head cups your teeth to break up plaque and rotates to sweep it away. And oralb delivers a clinically proven superior clean versus sonicare diamondclean. My mouth feels super clean oralb. Know youre getting a superior clean. Im never going back to a manual brush. Nasdaq on pace for the third consecutive week of losses. Sitting right exactly at socalled correction level territory. 47. 08, a 10 decline from the highs. Well get information from jim in a minute. Like needing to go frequently, day or night. 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, or adempas for pulmonary hypertension, 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 longterm 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 symptoms of an allergic reaction, stop taking cialis and get medical help right away. Ask your doctor about cialis and a 200 savings card. You wouldnt take medicine without checking the side effects. Hey honey. Huh. The good news is my hypertension is gone. So why would you invest without checking brokercheck . Check your broker with brokercheck. The light bulb, a bright idea if you use the right ones. Led bulbs use 85 less energy and last a long time, saving you up to 100 over their lifetime. Heres an idea replace yours today. [light instrumental music] replace yours today. Man 1 i came as fast as i man 2 this isnt public yet. Man 1 what isnt . Man 2 weve been attacked. Man 1 the network . Man 2 shhhh. Man 1 when did this happen . Man 2 over the last six months. Man 1 how did we miss it . Man 2 we caught it, just not in time. Man 1 who . How . Man 2 not sure, probably offshore, foreign, pros. Man 1 what did they get . Man 2 what didnt they get. Man 1 i need to call mike. Man 2 dont use your phone. Its not just security, its defense. Bae systems. Time for cramer and stop trading. Got talk about herbal life. Were back into growth. Started the year exceeding guidance. Top and bottom. A big short name. We know thats been shorted. He did mention theres no active left out of line in the queue. They have reasonable possibility that the ftc, theyll make a deal. Ry write the check. Get them out of the equation. Just the ftc. Its civil. Then you have a stock undervalued. Whats on mad tonight. Deal that people hated. A deal too far. Quintiles. And then ward nye. Talk about what is going wrong in the country . Aggregates. Roadbuilding. The states are flush and theyre building roads again. This was the hardest week ever. The longest week ever. I have to go out and run twitter this weekend. Congratulations. By the way well see you tonight, jim. When we come back, goldmans jan hatzius. Dont go away. Since. Everyone called me crazy. Things really took off when i got my domain name headsofcheese. Com from godaddy and now theyre selling like hot cakes. Made of cheese. Got a crazy idea you think you can turn into a success . We know you can and weve got a domain for you. Go you. Godaddy. Theres a lot of places you never want to see 7. 95. [ beep ] but youll be glad to see it here. Fidelity where smarter investors will always be. If only the signs were as obvious when you trade. Fidelitys active trader pro can help you find smarter entry and exit points and can help protect your potential profits. Fidelity where smarter investors will always be. Good friday morning. Welcome to squawk on the street. Were at the new york stock exchange. Markets reflecking the disappointment in the jobs number, at 160, well below expectations. Wajs were better than expected. Crude holding in at 44. 50. Ahead, well have jan hatzius joining us live for his take on those numbers and how many rate rises he thinks well get now. Speaking of jobs, the u. S. Economy adds 160,000 jobs in april. Lets bring in our senior economic reporter, steve liesman. The big headline numbers on the softer side of the recent strong gains. Some of the internals are showing signs of strength. Two weeks to justify a rate hike. Here are numbers everybody is squawking about or talking about. 160 on pay rolls. Were looking for 205. Thats a miss. February and marc revised by a modest 19. Labor force participation after a series of strong monkts, where people came back into the work force, went the other way. 62. 8. The two strengths are at the pot tom. Hourly wages up 0. 3. Thats a decent gain. And the work week ticked up. Health care, 44,000. Leisure hop tallty, 22,000. Construction taking a breakings as was retail. Government falling 11,000 unexpectedly. Those were postal worker jobs. Pantheon saying, its not significantly didnt from the trend. It wont stop markets reading it as weak. A ho hum employment report today that is probably not good enough to make a june rate hike happen. Some economists see this report as a sign of things to come down the road. As the economy nears employment, job growth would ease and the market is tight. The fed might be brought in off the sidelines later this summer. At the same time, for now, the Market Report is a reason to sideline the fed for maybe the rest of the year. I wonder, though, if this weakness may be a fallout from the deep recession concerns over the winter, especially the global recession concerns. That might have caused Big Companies to ease back on hiring. You might see hiring accelerate again in may. Simon . I want to give i want to give a shoutout to joe of deutsch bank. He was actually at the low end of expectations coming in. The reason is that retail had contributed a huge part, 0 of all job created in the First Quarter. He plooefd that was unsustainable. If you look at the figures you have just put on the screen, job creation and retail has ground to a halt. The strength in retail was the headscratcher. Kudos to joe. Retail is very strong throughout the wint person a time you dont see that strong retail growth. Thats been strong. The construction falloffs been have been very strong. Also sort of curious. Well wait to see. Simon, you can imagine. If you remember what we went through if january and february. Fears of recession, global meltdowns. You can imagine Big Companies saying, you foe what . Its not a good time to hire. Feels like were out of the woods. Maybe they resume in the spring. That is the fear. Steve, thank you very much for that. Lets bring in tom porcelli and david liebowitz. Global market strategist. Tom, i want to pick up the point here that this knox a rate rise out of the way because we had four fed speakers talking up the possibility of a june rate rise. If you look at the figures. I understand the head looip figure is disappointing. This wage dproet may be up 2. 5 year after year. But the average rate is 4 . That puts inflation towards the target that the Federal Reserve is trying to hit, doesnt it . Yeah, look. I think its disingenuous to say that todays report is a reason to think the fed will take a pass at the june meeting. I would submit even if it was plus 300,000, the fed wasnt going to move. I think that youre right, simon. To me, this report has inflationary undertones. As you rightly highlighted. Average Hourly Earnings are running at a constructive clip. I would point out if you look at the job levers rate, youre going to be near 3 on average earnings toward the end of the year. Weve been pounding the the table that there was more inflai inflationary impulse than people thought. Enough for the fed to empark on the tightness process. A desire to normalize rates because theyre at emergency levels. Boil that down for me. If youre right, what does that mean for rate rises this year . Because many think theyll be hardpushed to squeeze one in. And again, unfortunately, im in that 10 to 20. I think the market is right to think one hike this year. I think the market is right to think one hike next year. The domestic fundamentals are in place. If this was a duel mandate fed, they would be raising rates. This is not. Instead, its a multivariable mandate fed being governor by things well beyond things happening in our boarders. If the fed is going the continue to be worried about floebl developments, the market will be right. Well have one hike this year and one next year. The question is, what does it mean for the market . The dow is now positive, up nine points. Given that were coming off op an almost no growth quarter. Now the labor market is weakening, what do you do . I think the market being inflate kind of reflects this was a mixed jobs report. As we have discussed, the payroll figure wasnt fantastic. The fed may have reason to move later this year. We think the hurdle for a june rate hike is looking particularly high. Especially when we look back at First Quarter activity data. We look for earnings in the long run. If we see wam growth and no productivity growth, thats historically led to inflation. That forces the fed to move faster than they or the market would like to. That said, what does it mean for earnings . So, right now, i dont think it means too much. Were focused right now on the head winds from a stronger dollar. Lower Energy Prices beginning to subsi subside. If we continue the see upward pressure on wages, our concern becomes we see pressure on margins from higher wages at the time when the other head winds are beginning to tail off. I think we need to watch the next few Employment Trends closely. There are things this the report causing us to look at our fundamental view. So what is your target to the end of the year . We tend not to target. May view is somewhere between 3 and 5 earnings growth. Were in the mid to high single difficults for the u. S. Equities. I think we can push higher. I dont think well see gains like the last couple of years. Tom, what signals are you getting from big business as for their plans into the Second Quarter and the second half of the year . Spending, bigticket items, hiring. All the signals looking back tend to be sluggish. Yeah, no, i would suggest that the signals remain fairly constructi constructive. Again, let me define constructive. If youre looking for a 2 run rate, i think the signals are significant with that. A blip up related to the verizon strike, we think. Remain near the cycle louse. Small business surveys. Its striking that they continue the highlight that theres a dearth of qualified workers. We expect. People need to start wrapping their minds around. Were slowing down from a job growth perspective. Two years ago, hitting about 250,000 a month. Last year, about 220,000 per month. This year, 190,000 jobs. We think the pace is going to be slightly slower than that. I hate to be practical. Think about this one thing. People are making a big deal about the allknowing consensus missing payroll mark by 40,000. Whats more compelling . We missed by 40,000 or 145 Million People saw a 0. 3 increase in their wajs. You made that point well. Thank you both. Tom and david. When we come back this morning, look at shares of square. Down almost 18 . After that guidance and results last night. More from kaylas exclusive with jack dorsey. And Company Moving in a didnt direction. Jim stewart taking up facebook in his latest column. Hell join us later. As sara said, the dow is positive to the tune of about five points. Shares of square are being punished after posting that wider than expected quarterly loss. Jack dor i have, also at the help of twitter told us that the pane has not lost its focus. Take a listen. We focus on what matters. What matters is building the products and building the service. We want to build something people value every single day. Were driving arounding building a daily utility that everyone can benefit from. Thats what we can control. Were showing it. Were focused. Were prioritized. We know what people love. With square and twitter both in hypercompetitive spaces, is it a good idea for the companies to share ceo. Josh is a former employee at twitter and facebook. Good morning. Thank you for having me. With twitter their these alltime lows, square was the child growing faster. A lot of that is being reversed today. Were left with the question, can he do this . You know, its hard to drive an Innovative Company one at a time. You have to be able to make bold bets and feel like the entire organization is behind them. So what do you think . What is the answer . Specific to jack. Is he capable of this . You know, i think jack is an incredible product thinker. An incredible person. I think it is hard for hard to see both Companies Going through the cultural change as Public Companies continuing to force the innovation while his time is split. Do you see these issues specifically with square and twitter as execution problems . Or is it something broader boipg on in technology, a slow youp now. Where powerful Companies Like alphabet had tough quarters. I think when we look at apple and amazon and facebook and google and alphabet, theyre innovating at a level that is unprecedented. If they have a tough quarter here and there, i know the things going on inside the companies are pushing the outer limits of what is possible with technology. The Smaller Companies are having trouble keeping up. Because they havent amassed any of the same user bases and deep customer bases. Which points to a bigger question, really, josh. On a broader level. People look at social media and businesses like that and say, look, it would seem you get one shot to get critical mass. You make it or you dont. Others, since were following jack dorsey jet again, must think its a problem you can work, like macys or mcdonalds. Which of the two camps is a more accurate description . You know, i berealieve that product that gets to hdreds of millions of people like twitter can still get to billions. It will take bold, innovative steps to make the product work for everybody. The times has a piece out today looking at social media. Average time spent per day in minutes in the United States facebook, 35, youtube, 17. Yahoo 9. Linkedin 2. And twitter, one minute a day. Where do you begin . Do you think those stats are true . I think it depends on if theyre trying to amplg across a lot of people or the people who really use it. The people i know who are addicted to twitter who use it as the primary news source st actually spend hours a day. Its the first thing they check in the morning and the last at night. If you were an employee at twitter or square. Good talent came along. Dorsey directed them to the company, not the one you were at, how would you feel . You know, i would the companies are different enough that i think the people who are great at payments and working with businesses are different than working with new social media product. I would be comfortable well get the best for our domaidomain. Josh, thank you. Facebook has more than 1. 5. Monthly active users. How much time do they spend on the social metwork every day. You may have had a bit of a tease there. The numbers will surprise you next. Im only in my 60s. Ive got a nice long life ahead. Big plans. So when i found out medicare doesnt pay all my medical expenses, i looked at my options. Then i got a Medicare Supplement insurance plan. [ male announcer ] if youre eligible for medicare, you may know it only covers about 80 of your part b medical expenses. The rest is up to you. Call now and find out about an aarp Medicare Supplement insurance plan, insured by unitedhealthcare insurance company. Like all standardized Medicare Supplement insurance plans, it helps pick up some of what medicare doesnt pay. And could save you in outofpocket medical costs. To me, relationships matter. Ive been with my doctor for 12 years. Now i know ill be able to stick with him. 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I have a lifetime of experience. So i know how important that is. E. T. Phone home. [ soft music ] when you find something you love, you can never get enough of it. Change the way you experience tv with xfinity x1. Forget reading, exercising, or socializing. Americans are spending more time on facebook each day than those three activities combined. All in all, 50 minutes, or nearly an hour of each day. The company is cooking up ways to get us to spend more time on their platform joining us is jim stewart. 50 minutes. A Staggering Amount of time, isnt it . I first saw the number, i thought, 50 minutes. I thought, what else do you do 50 minutes of every day or an hour . Its amazing to me. Theyre such a new company. You think about it now, time is the coin of the realm in media. Its not just impressions. Impressions are yesterdays story. Its just a commodity. Time engagement, commitment, it works in so many ways on facebooks advantage. Hay can sell more impressions. They learn more about the people. Better target the ads. Its a virtuous cycle. You looked at how much this number has improved since 2014, when it was 40 minutes. What features are they adding . How will they add more . I think its mostly the news feed. In number includes instagram and mess ed messenger. The news feed is becoming increasingly tailored to your interests. Its not like a lot of journalists that want to tell you things they think you should know. What youre interested is in whether the pet store is open down the block at a certain time, thats the news youre going on to get. People are responding. Each one of these pages, and facebook, its like your own newspaper. You are the editor, youre the subject, you are the reporters. You are the headline. Youre the pictures. Me, me, me. That is a very compelling you ran page one of the wall street jourm. I did. For years. Yes. How would you light if i came to you and said, heres your two leaders and your ahead today . I probably would not have liked it. I didnt want to write about the School Lunch Program or the mcdonalds that i used to go to as a kid closing. Look, theres a place for all of this. I believe there will be a place for highquality premium journalism. Its something youre spending time with. Engaging with. Thats where advertisers will want to be. Gnats whats effective. They would all like to be the way in which you live your lives. Google would like to be the interface of everything you do. You have looked at this 50 minutes figure, 50, is all facebook users. You in the article have data that goes across society. You still have op average people watching television for almost three hours. The Bigger Picture is theyre still sat in front of the tv just changing the channel. Yes, they are. The amount of time people watch tv has gone up. Everyone with the rise of social media. Where people are finding all this time, is a mystery to me. Financial television. Maybe theyre watching cnpc all day. The problem with the tv industry, if you start breaking those numbers down, young people are leaving tv for social media. Its the over 55 crowd that still has the tv on all day for the most part. There are some demographics. Theyre watching you on social media, right . That tv number is conventional sitting in front of the tv. Not looking at mobile and watching it there. The other platforms will get bigger numbers. Facebook amongst them. Facebook live has really just started. Thats a video product. Absolutely. Thats another way theyre getting people to spend more time. Theyre putting more video into the individualized feed. People tend to spend more time with video. Finally, jim. Back to todays jobs reports. We have a productivity problem in the country. You looked at whether all this time spent on social media is contributing to it. Everybody is scratching their head saying, why isnt productivity going up. We have all this technology. Whats happening here . I thought, well, if theyre spending 50 minutes a day on social media, some spending hours, where is that time coming from . Dont we all know people at work who have their computer screen on and over here they have a pad, facebook . At least the data i got suggested that really isnt the simple explanation. The comscore says the ample person spends 6 to 7 minutes a day at work on their work computer on social media. They dont know if theyre using their phone on the side. Social interaction for people on facebook, four minutes a day. Thats the ig per problem. People arent talking. Theyre not going to parties. Its i dont know how this is going to change society. But they are sleeping 8. 8 hours a day. Its not interfering with their sleep. What about the students and their studying . How many people in thely br lib have the social media on the side . Thank you, jim. When we come back, the top economist at Goldman Sachs responds to the jobs number. The call just came in. Shes about to arrive. And with her, a flood of potential patients. A deluge of digital records. Xrays, mris. All on account. Of penelope. But with the help of at t, and a network that scales up and down ondemand, this hospital can be ready. Giving them the agility to be flexible reliable. Because no one knows like at t. Happy friday, everybody. Im sue herera. North koreas ruling party kick off its First Congress in 36 years. In his opening remarks, leader kim jongun trumpeted the nuclear successes earlier in the year. The wildfires ravaging the canadian oil town of Fort Mcmurray continue to spread. The 88,000 residents who fled the city wont be able to return home anytime soon. Officials now warn the spreading fire throatens two sites south of the city. German chancellor Angela Merkel meeting with pope francis at the vatican. They held a brief conversation. The pope was presented with the charlemagne prize. And space x launched a rocket this morning. This is the third time spacerks has been able to successfully recover their rocket after a launch. Youre up to day. Carl, back to you. Thank you, sue. Back to the jobs number. 160,000 makes april the smallest gain for jobs in seven months. Are these signs of weakness casting doubt on the u. S. Economy . Joining us is jan hatzius. From dpoGoldman Sachs. What went wrong . Its hard to know. I think, on a individual number. It was a little waerk all around. Wasnt just the publishment survey. House hold survey also softer. With souse hold employment down a fair bit. The signal from the data is that things are a little weaker than we thought. I dont thing its dramatic. I think were still improving. Just at a slower pace. This report is consistent with that. We had the secretary on the last hour. One of the things he said is its harder to go from 5 to 4. It will take longer than it took to go from 605. Should we expect more modest monthly numbers for the rest of the year . I think thats right. Youre not going to expect a slowdown in employment growth. Going to 4 would be a low number. Wow you would be worried about the labor market overheating. The foreign rate is 4. 7. Theres a range around that. But 4 would be a really low number. I think few people have such an optimistic view. I dont think the secretary was suggesting we were heading that way. How do you read the wages . Sit meaningful . I think the signal from wages is fairly encouraging. Not a lot of new information in this report. Certainly consistent with the idea that wage growth is picking up. We thing were at, you know, 2. 5 . Maybe a little higher. If we look at the different indicators. I think the average earnings numbers with consistent. Some people will be puzzled as to how they fit what youre saying to an interview we had a half hour ago saying its an inflationary report. You came into this forecasting how many rate rises this year . Three. You had a very aggressive forecast. You have now moved to two . We have take b our june. We think the next move is in september. This is obvious lay step change for you. And almost, i think, perhaps describing where you were on your expectations to whats now come through. Most of the market never thought they would deliver only one rate rise this year. They see it as slightly inflationary with the annualized wage growth at 4 . Fair comment . If cow take the month on month number and take it with a an annualize it. Take to it the 12th power. Given how noisy these things are you dont see wages as inflationary at the moment . I think wage growth is ax acceleratin accelerating. Theres not a lot of new information in the report. Labor force participation. Giving back some of what we got the last couple of months. Is that in danger of heading lower yet again . I mean over the very long term, i think so. The longterm trend of three skreers some what down. The process continues. That will exhort a drag. I mean, month to month, a lot of noise in the numbers once again. It was pretty surprising just how consistent an increase in Labor Force Participation we had over the last six months. So this looks like payback. What is the long Term Forecast on that number . Labor force participation . I think over the very long term, probably head down to Something Like 62. Im talking multiyear here. Maybe down a quarter point per year or so. But, since the moves month to month are often a tenth or two in either direction, the noise really outweighs the longer term trend. Speaking of noise, were getting into peak political season in the u. S. We have the big brexit question looming over the uk. What sort of drag are you expecting . I mean, our baseline would be that its not going to be a big effect as far as the u. S. Is concerned. Come, i think, you know, obviously, were still early in the season. So a lot can still happen. But in general, we dont think it has that big an impact on the economy. I think the brexit vault is something that has a bigger impact in the uk. With whether it has a big effect on the u. S. Is harder to see. It was, one of the things that has come up in comments by fed officials in talking about the june meeting. Can i ask you one last question about productivity and profitability . Deutsch bank was drawing our attention. Theyre saying in the last 11 le sessions, at the ratio peaked and then fell and two years later you have a recession. Therefore, do we have a recession at the end of the year . What is your view . A recession is still relatively unlikely. Of course, its possible. Its clear that the Business Cycle has matured. I think its still relatively unlikely. I think you also have to take into account in looking at the profit numbers, which clearly have been weak. No question the profits have been soft. You have to take into account one, the outsize goal of the energy sector. And two, probably, also, the impact from dollar translation. The dollar approach yags has been weighing on profits. If you adjust to some degree, the picture doesnt look quite as bad. Theres to question that prophets have been disappointing. Always good to see you. One of the great things about jobs days is having you here. Thank you. Thank you. Were going stick with the jobs theme. Louisiana has lost nearly 12,000 jobs in the oil and gas industry in the last two years. Local economies are feeling the pinch. For that story, we go to brian sullivan, with us from la rose, louisiana. Good morning, brian. Louisiana. Reporter yeah, good morning, sara. Thank you very much. When the number comes out, the bls outs it out. You dive in, analyze the number, whats the fed going to do. Those are ink on paper. Come to an area like this, travel as much as we have on this oil story. You meet the men and women impacted. Were on a workover barge. This would go out help repair or refurbish offshore or inland waterway rigs. Were here because its not working. This company owns 12 of these rigs. Only two of them are currently operating. One will end up at the end of the month. Only going to have one rig operating. You have about 15 to 40 guyses per rig. Multiply this rig, times 12, times all the tug boats and ships were going to show you all day. Those are real people. Not working. If you listen to matt moncla, one of the coowners and founders of the company, you can understand why the Unemployment Rate is going up when most are going down. Its really bad. Our business in particular is really struggling right now. We have gone from around 650 employees to, about 250 right now. Yeah, revenues have been cut in half. And, its a struggle. So theres just 400 jobs from one company in this region. A familyowned business, by the way. The question many people might have, too, and ive gotten, where are all the workers going . A lot of them are not going anywhere. Theyre unemployed and filing for benefits. Many more are looking for other ways to make money. The one thing they know is the water. What we have learned is that in out of work oil workers are trying to get jobs in the fishing, shrimping, and crabbing industry, which is not making everybody happy. The fisheries have always been the answer. When the oil patch goes sour, everybody goes fishing. Its not fair to the people thats been in the fisheries. Reporter yeah, so, guys, more people are going there, which, by the way drives down wages in that big business for louisiana. It also can drive down the price of shrimp and crabs and fish because they overfish. The point im trying to make is youre seeing this multisecond and third derivative impact. Exxon cuts something, they cut something, they cut these guys, they cut the truckers. They cut the tug boats. Its a multilevel story. Its a difficult one. Nobody is optimistic. Feeding into the election in many ways. Brian sullivan, enjoy the gumbo, i guess, in light of that. Brian sullivan joining us. Coming up, could Disney Release four separate billiondollar movies this summer . Data from fandango pointing to a strong season. And captain america civil war, this weekend. [ beep ] but youll be glad to see it here. Fidelity where smarter investors will always be. If only the signs were as obvious when you trade. Fidelitys active trader pro can help you find smarter entry and exit points and can help protect your potential profits. Fidelity where smarter investors will always be. The way some people see it, the market has been stuck in a giant trading range. Find out what could get us out of it. More squawk on the street coming up. Welcome back. Stocks near their lows for the day so far. Stocks struggling to get to the gaines we can see there. The s p is off. Yields trade if a wild range. The waerk than expected jobs number. Southern company, also con ed, duke energy, pse and g all down. Utilities, still this years best performing sector. With ten years yielding between 1. 70 and 1. 77 at the high, utilities and income sectors at the top. Reaction continues to pour in this morning. House Speaker Paul Ryan making news telling cnn hes not ready to back donald trump. Have a listen. Well, to be perfectly candid with you, jake, im just not ready to do that at this point. Im not there right now. I hope to, though. I want to. But i think what is required is that we unify this party. Speaker ryan saying, hes just not ready. But hopes to do so in the future. Trump responding, of course, firing back, quote, im not ready to support speaker ryans agenda. Tweeting again this morning. So many great endorsements yesterday, except for paul ryan. Ryan said i inherited something very special. The Republican Party. Wrong. I didnt inheart it. I won it with millions of voters. The war of words continues to heat up in the Republican Party. Something were going to hear a lot of. Donald trump is now the leader of the Republican Party presumably. The presumptive leader of the Republican Party. Presumptive candidate. Maybe he was giving other republicans a pass to not support donald trump. A lot of them are facing reelection in their campaigns this year. They are. Its also, theres a question of how conservative his agenda really is. Speaker ryan is the chairman of the convention itself, i believe. Its interesting. Well see how it evolves over the next few months. Bangs the gavel at the beginning. Certainly true. Excitement leading up to cleveland. I know that. Its whether he gets the support of the gop. Right. Coming up, Steve Mnuchin named the finance chair of donald trump. Saying he wont be selffunding his general election campaign. An important interview coming up. Losing a bit of steam. Lets get over to the group. Rick santelli has the santelli exchange. Good morning, rick. Theres an old joke. I like it. Im going to tell you this joke, okay. A bear jumps out of the bush, starts chasing two hikers. They boept start running for their lives. One stops to put on his running shoes. One says, you cant outrun the bear. The guy replies, i dont have to outrun the bear, i only have to outrun you. Thats the title of my piece today. Outrunning the bear. We had the labor secretary on. I get boat loads of emails about just about anything. But no more than on the first friday of every month when we have the employment report. Today, a lot more emails than normal. It wasnt a good report. Those that always seem to be able to find a Little Silver and a lot of straw have very little good to say about it. And it really, im not casting aspersions on the labor him, but this is what it is ta we dont have to outrun the bear, but just outrun europe or the recession or outrun japan, but it is not true. Grading on the curve, especially the Global Growth curve, and when you are the United States of america, and the best economy on the face of the earth and it still is makes very little sense to me. And grading on the does not work, and i will tell you why, because we have some issues. Debt for example. And debt is a big issue, and so it is not about outrunning the runner, but it is outrunning the debt. It is about outrunning lack of productivity. That is the other issue. Of course, now, it seems as though productivity is a number that is not working right, and gdp and the productivity are not working at these great jobs number numbers burk there is other answers, but it is sometimes going to be counter factual gets in the way. An example, plenty of jobs that dont add productivity and maybe they are growing a lot, and the productivity is not tagging along, and if we hired 20 Million People to dig sand and 20 million more people five months later to move the sand back, and that is a lot of job, and lot less productivity or the broken win toe, but think the about the jobs. I am not thinking that the people who do these jobs are not important, but think about compliance, and security, and tsa and in fact, we all want to be safe. Great job, but if you hire a zillion security guards and if nothing happens, what did you get . I am not i sag that they are not great professions, but it is not the same as somebody who creates something immediately that brings some type of benefit, productivity, and we can outrun anybody, and grade on the curve just like we don the dollar index, and the dollar against the euro or the dollar against the yen, and look at the dollar on the stretch of 1913 to today, and in an isolated fashion and benchmark it against gold, and there, you will get the honest answers. Simon, back the to you. Well, gold did have a certainly good quarter. Rick santelli in chicago. As the summer movie is season kicks off, could disney be on track for four billion dollar blockbusters this year . We are talking to our next guest who says it could happen. And now, captain marvels latest is going to hit the hit the theaters this weekend, and now joining us on the phone is the fund managerer erik davis. You saw this franchise coming again . Yes, the marvel films are Getting Better and better and bigger and biggering and i spoke to a lot of the film analysts prior to the film coming out, and looking at the year that disney is lining up, it is adventu adventuresized ensemble cast, and the avepger po i haves have crossed over 1 billion, and this is the potential, and if you are looking at the potential of the franchises coming down the road, and if you are looking at what disney has done with utopia and the jungle book which are over 933 million worldwide, disney could have a good year. So, yeah, the 4 billion is not out of reach, definitely. And i thought that there was a warning from some executives last week that it might not be as good of a summer as last year with the furious 7 and jurassic and so on . Well, yeah, i thought it wouldnt be a recordbreaker e coming off of last year, but look at dead pool and z zootopia surprised everybody, and jungle book and nobody predicted that one, and then you have to see that some of the hits off last summer, we didnt see it coming like Jurassic World and fast and furious 7 gross i grossing over a billion, and it did. Even though disney has some strong movies and there is a movie like jason bourn, and Independence Day resurgence as the jurassic thing going forward, and even the secret life of seth could also do it. And it strikes me that they are all sequels and built franchises, and is that the only way or the best way to be successful at the box office these days, erik . Yes, it is all sequels, but it is deaf fitly the way right now. I think that in order to kind of get the best investment on some of the bigger budget movies you want to play into the things that are already familiar to people, and so we will see the established franchises, and adaptations of the pop ular novels, but it does not mean that the studios are not taking risks, and i mean Something Like mad max fury and this is a risk and Something Like suicide squad coming from Warner Brothers in august is part of the d. C. Universe, but it is all about super villains, so i think that for the movies to be successful, the genre needs to e evolve, and we will see the continuing franchises, buts, yeah, the tent folds. And now, you know what you will get. Erik, have a good weekend and enjoy the movies. Joining us from fandango. And a quick news alert to share with you, president obama is going to be speaking at 12 05 eastern time on the economy and of course, we will have it live right here on koishgs and of course, coming off of the jobs report that showed a little weaker than expected in jobs with 160,000 added in april. David . Well, as we are wrapping up here, the worth mentioning of the blowup of the ta which is endo international, and we mentioned it on the first hour, and this stock is down 40 after the company redaused revenue guidance in the year for the introduction of generics, and the investors are fleeing. The high on the stock is 88. 84, and sit down 80 over the last 52 weeks. It bought parpharm with cash large lishg and the debt on the ba Balance Sheet is representing five times the e by e, bishgs ebitda. And now, looking at the also lower pressure resulting in lowering of valeant and some others in that pharma sector. Okay. Now over to the jon fortt . I aem not sure if i can put a square peg in a round hole. There is one particular phrase that did it in. And tech, not everything is bad, but yelp is up, and other names doing better than expect and we will have trumps finance chair coming up and more on squawk alley. Whats going on here . Im val, the orange money retirement squirrel from voya. Were putting away acorns. You know, to show the importance of saving for the future. So youre sort of like a Spokes Person . More of a spokes metaphor. Get organized at voya. Com. Good morning. It 8 00 a. M. At square headquarters, and 11 00 on squawk alley live. When you cant you dont stop you are coming down for sure i got the guerin it like you and everything i do