Transcripts For CNBC Squawk On The Street 20140502

At 2. 664 and europe is back to work and largely mixed. Our road map, the jobs number, payrolls above consensus. The Unemployment Rate dives to the 5. 5 year low. Watch the participation, rate, wages, more americans drop out of the work force in april. Pfizer raising its bid to try to buy astrazeneca. Astrazeneca says a few hours later no thank you. Astrazeneca shares trading below the offer price. Pfizer may need to raise a bit more. Were going to have a lot more. Upbeat morning for internet stocks. Linkedin, open table, expedia beat. A miss for chevron, profit dropping 27 on lower production. J. Crew going budget friendly. Can cheaper sweaters boost sales without diluting the brand . First up, though, lets tackle the jobs number, 288. The Unemployment Rate at 6. 3 , thats the lowest since 2008. People are wondering how this is possible, though, with the labor force decline like we had, jim. 62. 8 is the lowest since december of 2013. Yeah. Look, these are hard to rationalize. The 6. 3 seems like something you dont want to hang your hat on but the job creation is think is in sync with what we heard jed from alan mulally and mark fields, that Auto Industry is hiring. What weve heard from a lot of retailers beginning in april, april is very strong. What we hear from companies in nonresidential construction, which ive always felt is the biggests possible employer and oil and gas. Hey, you want a job . Move. Theyll hire you. Theyll put you on an oil platform, david maybe not you hey, if i had to i could could you work on an oil platform . Maybe a couple hours. Halliburton is trying to hire a couple thousand people down there. 85,000 you start. Wow. Construction added 32,000. Big. Professional services added 75,000. Temp jobs only 10 of the jobs. I was surprised. The construction, look, when you listen to 3m, what 3m said the country did stop. 3m is a Great American country. The country stopped, road building stopped, any sort of like cement could not be poured. These jobs are coming back. So youre seeing that. But youre also going on these retail Conference Calls and its rather incredible that people who have not been doing well parks neera, which is on mad money tonight march not that good, april was a very strong month in this economy. Bond market is not telling you they think this means rates are going higher any time soon. The bond market is just so you hate to use the word frightening, but if Interest Rates dont go higher on this im missing something big. Big bonds shortage maybe. I have a bold one. Fed should be selling bonds and taking profits right here, right now. Really . Yeah. Getting out . Selling bonds, offer a trillion of them. That would open be a quarter of what theyve got. True. They are very long bonds, but they could get started. Ollie garts want to buy them people live in italy, Third Largest bond market wan want to buy them. The fed say 6. 3, declaring victory and stop buying entirely and if the rates stay down here we will sell. Maybe putin can take his 100 billion and put it in treasuries. What do you think putin is doing with the cash . I saw the Senior Citizens are buying a lot of stock. I dont know. To your point about the bond market and what carl is referring to, this underlying current that says well, good, but not quite as good because the Labor Participation rate, because of the you know, you had people 55 and older actually increasing, so its not about retiring. Its not about the demographics. Revisions in death. Death numbers. I dont know work week flat. Wages flat. Right. Average Hourly Earnings. Look, theres you cant go from 0 to 60 in this size economy. This is going from 20 miles an hour to 30. Im not going to look through this. There will be a lot of people who look through this. Im not. I dont look through it when its bad, im not looking through it when its good. All right. Okay. That sounds very reasonable. My offer to work for halliburton stands. How long do you think i would last if i would time it on a stop watch how long i would last on one of those platforms. Theres like 50 cities in america where the Unemployment Rate is 5 or under. What do you think of that . A lot are energy. Like the middle of north dakota, its the permian. I love that. If we can get if the federal government would get help people, a bus ticket, a bus ticket, david a bus ticket to grand isle, louisiana, and were ready for you, grand isle, louisiana. Will they really take Somebody Just coming off the bus with thats it . Thats all they need . Yep. They would. Its like shawshank redemption. Get off the bus and theres a job working on the boat. The problem is where do you live . If we have a housing shortage too. They have to build houses, roads, schools, but it will come now. People feel embolden. Now that jobs number is out, did you nail the number . This week we asked you tweet your predictions. Lucky winner will receive this duffel bag au graphed by the squawk on the street gang. Well announce our winner later in the program. David . Well, pfizer has put forth a look at all those autographs taking place. Pfizer put forth a bid for astrazeneca but the british drug maker rejected it. Astrazeneca said the 106 billion offer, up from, of course, 98 billion previously, is inadequate and it substantially undervalues the company. Okay. You could say it undervalues the company. How much do they have to pay for this . Some of the facts here. Pfizer raised 7 from the initial offer that took place when they first had relatively brief conversations earlier this year that then kind of went nowhere, dormant, until something was reported and ian reed decided lets really give it a shot. You know, deutsch blank for its part saying we think they need to go higher from here. What was interesting they raised the cash portion and they raised the stock portion in the latest higher bid. So were talking now 1. 845 shares. Its about 32 cash. 68 stock. You seen deutsch bank saying we think they could go up another five pounds a share in cash and that would be enough. Pfizer needs to try to get this done quickly. They have until may 26th to come with a fully financed offer under uk takeover law, but they dont want this thing hanging out there with the tax question. Have you seen this today . Usa today, mom and pops paper, the back and forth editorial, all about tax structure and inversions. You asked earlier in the week, if pfizer doesnt get this conversation started what will . Its starting. Its starting. Nutty tax code. Whether or not that will result in anything that can be done by congress, i will take the other side of any bet that says they will get anything done on tax reform. But pfizer wants to move quickly because the longer its out there, the more chance there is you get something that conceivably could go against them on being able to invert. But that being said, astrazeneca right now, is playing its pipeline which a lot of people say well, doesnt look so good to us. Thank you. I was going to say, from a qualitative point of view are you kidding me . Going to pay this much for this i almost called them second rate but im going to the white house Correspondents Dinner dont want to get that image i say things like that. Im going to call it not as good as most American Drug companies. Okay. Not move into oncology and listen, you want that you know who you go to. Whos the oncology specialist . Bristol miers. I knew that. Bristol myers, i would buy them theyre located here. So i guess they have not inverted. You are going to have asco coming up and thought perhaps astrazeneca will have positive things that are released there that will embolden their investment. Listen, there can be more of a conversation under uk takeover law between the shareholders and the company that wants to acquire their shares. Okay. And most conversations are taking place between pfizer and that shareholder base. Theyre giving them a sense as to where to go. Astrazeneca ceo is still stuck in australia because he doesnt want to get on a plane to come back because he wants to stay in touch at all times. 100 billion. This is a huge and this letter to the Prime Minister of the uk, david cameron. Important. By ian reed. Important they line up potential support there. That certainly defeats what might be an otherwise potent opposition. All right. Put me in the room put me in the room. Of the deal in terms of uk. I never thought of pfizer as being this rough and tumble group of people. This is bare knuckles, isnt it . What is it like in there . Theyre just trying to figure out whats going to win, thats all. Im saying right in the face of the u. S. Government. Theyre saying listen, we dont care. We dont care president obama, we dont care about you guys. Like ackman with allergan. Listen, we see these loopholes, were going to take advantage of them. To say its a loophole is not necessarily right. Tax inversions are something we have been talking on this show over a year, weve been seeing it. It is the driving force of m a consolidation in pharmaceuticals, no doubt about it. Pfizer is late to the party and the fact is while your competitors are all inverting if youre not, youre out of luck. You want to do it too because one day the Congress Might act. 2015, 2016, i dont know when that will be, and then everybody whos in already will have a competitive advantage forever unless you lower the tax rate so low that Everyone Wants to come back. Who wouldnt it make sense to buy over there. Astrazeneca is the benchmark of not great pharma. Interesting conversations i have about some of the potential deals, whats the Product Portfolio mix. Who cares. Astrazeneca, i was worried about their dividend. I thought they were going to dets cut you get who cares. We have to invert. Doesnt matter. Not surprise ian reed is an accountant by trade. Thats the driving force behind it. Lawyers, accountants, thats who runs companies. Pfizer does want to try try to do it under something called a scheme of arrangement under uk takeover law, make it friendly. It will shorten the clock for them and that would be helpful. Well see if they choose to come back with a higher offer. All right. I find this amazing. I find this is happening in the vacuum of people saying, geez, i dont know if you like the stock market or not. 100 billion a company i know its british, but the fact is there could be 100 billion deal. Thats a lot of capital. Verizon was big. M a, are you going to still say its not happening . Oh, no. M a is back. You dont talk to me in the morning anymore. Youre on the phone. On the phone. M a hey, jim, gives me the heisman, i call all these bankers. Its back. When we come back, the white house, well get their take on the jobs number today. Labor secretary tomas perez will join us live. A lot of earnings to go over. Expedia, chevron, cvs, estee lauder, linkedin and talk to the ceo of expedia as well. Take one more look at the premarket as we try to work through this jobs number. The dow basically now flat. More squawk on the street live from post nine in a moment. Nine. In a world thats changing faster than ever, nine. We believe outshining the competition tomorrow quires challenging your Business Inside and out today. At cognizant, we help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. Chevron leading the earnings pack this morning. The dow component firstquarter profit down 27 . 236 a share, below estimates due to Lower Crude Oil production and prices. On the tech front linkedin, opentable, expedia posting better than expected earnings. Well talk to the head of expedia later on in our program. Jim, you have tell graphed that youre not supposed to expect a lot out of these big majors in oil. Exactly. Chevron gave you midquarter update that was quite disappointing. This is very much in sync with that. The big dogs dont find a lot of oil. Chevron has a lot of prompts down the projects down the line and so does exxon. This is not a shock. The stock at 116 when they announced that midquarter update saying listen things arent going our way. Then it goes to 125 given the fact were in this big cap love affair safety. It will be fine. Exxon was down a dollar. Connaco reported 3 to 6 growth in production and the stock up nicely. The eogs, the pioneers are going to report well into the 20, 30 Production Growth if the permian continues to pump out, the delaware basin, the eagleford. If you want growth you dont go to big dogs. If you want growth look at linkedin, revenue up 46 . That was ahead. Beat business 4 cents. Guides the quarter current below estimate. I read through that quarter in the first part before they get to the guidance you think its all system goss. They spent a lot of money on china. A lot feel this is a broken stock. 46 revenue growth. Come on. Im just i mean thats stunning. I said you read the first part its really great. Same thing with yelp. Demand i mean im just pointing it out. Now granted im not going to say anything about the multiple or anything else. Thats not what the people want. What do they want . They want alibaba, 66 . I like that. But they would love to have off a huge base. They would love to have that dividend that buyback, they want a little bit of growth, and but they dont Want Companies to i know they spent. They spent these are not companies that should be paying dividends and buybacks and they wont. They spent a lot of money to get those revenues and at a certain point people want to see a return for the spend. Earnings per share return. Okay. Like actual gap . Actual gap. Come on. They want actual gap since february 28th. Not including stock and all that stuff please. They want 3m. Listen to me, they want organic growth in the five six want a buyback and giant boost in the dividend. Thats the bingo. Thats bingo. They dont want this like hey, we spent much more than we brought in, but we had revenues that are up. Because people are not buying that stuff anymore. I guess. Although there are a lot of corporations right now putting cash i dont want to say to work, but that are using cash for acquisitions. Pfizer will use 40 billion. People are cool with that. Not doing the buybacks as much as they might have been or not the first checked box anymore. They buy a company and fire everybody. Thats how its been done. Yeah. I mean as you say theyre not buying growth, though. Theyre just buying secretion to the bottom line. They should be buying baxter, a bunch of companies i think that are good and streamline and have great stuff. Yesterday the market seemed to like the kind of growth that linkedin gave you. Harman was on mad money. They gave you great growth. That sold off. Starts at 110, gaps to 114, down to 102. Finishes at 107. The market is fickle, likes growth, doesnt like growth. Linkedin was great growth but spent a lot. Opentable, i can talk opentable. Only 18 . Im just saying. Opentable spending a lot too. Some people are uncomfortable. I thought the opentable numbers were extraordinary. I thought they were extraordinary. The number of people who use opentable. I mean ive been thinking the restaurant we ought to have opentable but you need tables that are open to have opentable. You dont use opentable . Youre not in the opentable. We have 17 tables. What do you need . Sold out every night. Get bigger for gods sake. Grow. Going to start raising prices to catch up with the commodity costs even if it costs them share. I was disappointed with that quarter. That was not worse than show. Im nominating kellogg for worst in show. Clorox not that good. Kellogg, sugary cereals, no. And watch out. Mexico put a tax on this stuff. I dont think mexicos all that off base. So kraft not that great and kellogg extraordinarily bad. Except for pringles. Pringles making a comeback because they took it from p g, right. Bringles turned out to be undervalued. Sketchers says it is interested in acquiring an interest in the los angeles clippers. Says it would be a natural fit for the company. Of course a week after geffen, oprah, combs, you name it, say theyre also interested. Mayweather. I dont know why im not i guess i just because im from new york and philadelphia. Theres just no reason for me to make that bid. I dont think so. I dont like that team. Its like the wolves. Remember the wolves . Giant fans. Season Ticket Holders and bought the vikings because they were for sale. They dont come up often. A lot of people in the Financial Community certainly pledge of Hedge Fund Managers or private equity owners looking for teams, so to speak and they will jettison their Hometown Team if they cant get it, maybe a mets fan but try to buy the Milwaukee Brewers like david david was from milwaukee i think. But anyway, look, sketchers, it would be a natural fit. If you want to crack i interview kevin plank the other day from under armour. He has auburn, university of south carolina, notre dame. If he would get an ohio state, a jc penn pen state, then under armour would go up. You need the image of being a pro. Their endorsements do work in apparel. They really do work. Coming off the marathon too. Yes. You need you got to have it. Sketchers that would change the profile of sketchers. If steve madden were to buy, i dont know steve madden . I liked him wolf of wall street. He was great. Wasnt that a fabulous scene. I forget those guys took him public. Yeah. Well get cramers mad dash as we count down to the opening bell. More squawk on the street from the nyse in just a minute. [ female announcer ] theres a gap out there. Thats keeping you apart from the healthcare you deserve. But if healthcare changes. If it becomes simpler. The gap begins to close. When frustration and paperwork decrease. When doctors are better connected. When grandparents get to live at home instead of in a home. The gap closes even more. And you begin to live a healthier, happier life. So lets simplify things. Lets close the gap between people and care. With all the opinions about stocks out there, how do you know which ones to follow . The equity summary score consolidates the ratings of up to 10 independent Research Providers into a single score thats weighted based on how accurate theyve been in the past. Im Howard Spielberg of fidelity investments. The equity summary score is one more innovative reason serious investors are choosing fidelity. Call or click to open your fidelity account today. At your ford dealer think . They think about tires. And what theyve been through lately. Polar vortexes, road construction, and gaping potholes. So with all that behind you, you might want to make sure youre safe and in control. Ford technicians are ready to find the right tires for your vehicle. Get up to 120 in mailin rebates on four select tires when you use the Ford Service Credit card at the big tire event. See what the ford experts think about your tires. At your ford dealer. Its friday. Six minutes. Time for six minutes until the opening bell. Let me finish that sentence. Talk cbs. I dont want i want to preface this saying cbs is a great company. Might be an opportunity. I dont want to slam cbs. I think theyre extraordinarily good. They reported this morning and said front store, front store samestore sales, down 3. 8 . That took my breath away. I dont know if its those machines that talk to you, i hate that. I like to deal with people. The reason i mentioned this, the rite aid everyone regards being a second aid cvs, had plus 4. 7 comps in the front. Now you have these guys copying 4. 7. You know a lot of rite aids are near cvss. You will hear is rite aid taking share . That down 3. 8 is really extraordinary. Cvs is a great operator. Weve got to learn more about why that happened. In the meantime dont write them off. Writing off cvs and walgreens has been a real mistake. Buying them on any weakness has been smart. Walgreens has its own story with the alliance acquisition. They could invert. Theyre a great chicago based company. Its not clear they will. Does anyone ever have to go there. Like you have to leave chicago to go i dont know. Residency requirements. If they impose residency requirements on a lot of the ceos it would change the inversion thing. Do you think they would still do it . No. We have so many Different Things to follow including labor secretary tomas perez going to react to this mornings jobs report. The markets will do the same. Not just the stock market, bond market too. We will be following all of it on squawk on the street. Uawk welcome, welcome, welcome, welcome, welcome, welcome, welcome, welcome, basket, basket, basket, welcome, welcome, female announcer sleep trains interest free for 3 event ends sunday. Its your last chance to get three years interestfree financing on beautyrest black, stearns foster, serta icomfort; even tempurpedic. Plus, get free delivery, and sleep trains 100day low price guarantee. But hurry sleep trains interest free for 3 event, ends sunday. Sleep train your ticket to a better nights sleep became big business overnight . Like, really big. Then expanded . Or their new product tanked . Or not . What if they embrace new technology instead . Imagine a companys future with the future of trading. Company profile. A Research Tool on thinkorswim. From td ameritrade. Youre watching cnbc squawk on the street. Live from the Financial Capital of the world. The opening bell in about 90 seconds. Busy morning. A jobs number the headline way above expectations at 288. Unemployment at 6. 3. We havent seen that since 2008. But some of the internals are either ken fuconfusing or disappointing and one reason the yields did not spike. Gold positive right now. Im trying to find reasons why Interest Rates didnt go to 2. 75 on the ten year. We can search the number. Theres obviously flaws in the number. Will anything drive Interest Rates up again if this number doesnt. They go up, remember they were up 16, now up 9. I mean i find that this Interest Rate move is just really jarring people. People cannot understand why the heck arent we at 2. 75. But then look at the european bond places and maybe a Conspiracy Theory that the Central Banks all over the world are keeping rates down and why would you own a why would you own a portuguese tenyear if you can own a u. S. Tenyear for roughly similar. Interesting too, the journal has this survey that Retirement Savers exposure to stock is the highest in six years as people try to either play catchup or say im going to use cash to buy some dips here. I have to. You cant get if youre on a fixed income you cannot get enough feel from your ce. These people, remember, theyre either buying ces or buying verizon. And verizon gives you a lot more and is not that risky, frankly. Theres the opening bell on this friday. What a week it has been. And a look at the s p at the top of your screen. Down at the big board, Ares Management celebrating its ipo today. At the nasdaq, take and bake pizza chain, papa murphys holdings. We will speaks to the ceo later in the show. I want to keep an eye on this ipo, ares. One of the private equity firms going public. A time when i remember i broke the story about blackstone going public, wow, a company that Takes Companies private. Blackstone was more focused larger part of this business going public. Now, of course, they all have. Kkr. I know. Carlisle, apollo, you name it theyre public. Ars following did not go well. Came below the range. Alibaba was going to be a seller into the ipo. They pulled back on what they were going to sell. Its still making people wealthy. If you look at the ipos, if you bought an ipo on the first day pop, bought the pop, theres only a half dozen where youve made money. Youre down on the rest. Its extraordinary. Ive been working on it for tonights show. I just cannot believe how stupid it is to buy the pop. Youve lost huge. People have lost a great dealing of money if they buy the open. Dont buy after the opening trade. Right. Its been a horrendous strategy. Theres only a couple of bioteches that have done well. Theres three Tech Companies where youre not down of which the largest the biggest gain is 6 . The rest are all down guy gantically. Such a suckers game. Buying a pop is a suckers game. Im going to hit that hard tonight. Im hitting it hard now. I dont think ares will have much of a pop. No. Win is a big winner. Stern ag upgrading it to buy. All the worries about makau unfounded. The chinese gamble doesnt matter whether the pmi is 46, the chinese gamble. This wynn number is extraordinary. By the way, this steve wynn, shelden adeleson, wynn and lvs are very well run companies. Theyve done a great job. Really extraordinary. Estee lauder, 64 cents did beat by 9 cents, thats going to be your best s p component. Revenue above expectations. That shows you the high end makeup is doing very well. That number took my breath away. Very well run company. Yeah. We have a lot of companies in the country just amazingly run and this estee lauder just continues to do a fantastic job taking share, opening really with cosmetics, but they went down a little bit. They went down scale too. Kle china important for them. Couple upgrades for masco a too. Masco quarter nothing to write home about but people are getting behind it. Not seeing any housing numbers that would justify that. Masco does have a big European Business and the stock is inexpensive versus the rest of the group. Shares of directv giving up a bit of gains yesterday. Spent a lot of yesterday trying to track down the story. First reported by the journal. Can tell you that there were there was an outreach about a month ago, but very much unclear to me exactly where things stand right now in terms of active talks. Not saying there arent, but had a very hard time, despite all those phone calls, really trying to actually be able to pinpoint whether things are truly going on so to speak. But what was interesting yesterday is directv was up, but dish was up more. In fact, today dish is up again, this whole idea being is at t really trying to smoke out dish. Of course, Charlie Ergen controls that company and the day comes when he baptss s ts wants to sell it he knows where to go. If he doesnt want to sell it nothing is going to smoke him out. One way or the other. He holds so much spectrum. Many believe, most believe, that is a far better acquisition opportunity for at t than would be directv. Again, we talked about this yesterday which is mature business which made decisions to, as it declined, to buyback a lot of stock as opposed to dish made decisions to buy a lot of spectrum. You can imagine that spectrum is valuable to at t. Theyre going to be getting more of it at dish. Very interesting to note that stock is up again. Not expected that when you heard that story initially, i think the i did short dish and bet wouldnt have worked out. You this weekend be attune to this . One of those you have to make calls this weekend or nothing that is going to be i dont feel its one i have it to worry about it this weekend. Thats important. Because i know that you would change your weekend if you felt it was about to happen. Absolutely. Again, you always worry that youre wrong in that, but after talking to a lot of the professionals who help advise on these transactions, i dont feel like theres anything near near term here. Okay. But weve got to watch it closely and see. These things can happen quickly as we know. For example, pfizer astrazeneca back in january or february they made a quick approach, nothing going on, and then they decided over a weekend or even that was amazing. Again i keep coming back to that deal. Its a take your breath away deal. What it says is, everything is worth a little bit more than you realize. I know even david, if you take back out the tax thing, astrazeneca i did not think was worth that much, tax no tax. Just didnt think it was. You made that clear. Everyone kind of says there wills glaxo, a good company, navarre tis, theres astrazeneca. No not a good company. Thats what people would say. Yeah. I wanted to recommend it so badly on mad money for people who wanted income and i got cold feet, man. I was wrong. Pfizer loved it. They like the address. They have 40 billion sfimtsing what their foreign cash they havent told us specifically to put to work they wont bring back to this country. Why not use it. Ask the labor secretary about it. Do you think hell react . I would be interested to hear. Might be out of his universe but never know. Right. I know what hes going to say. We need to have immigration reform. Yes. Globalization he can hear you right now bring him in, on the jobs number, labor secretary mr. Perez joins us from washington, d. C. Good morning to you. Always a pleasure to be with you. Its been said that its into the often you see a madeline not often you see a headline this good with internals disappointing. Do you consider 6. 3 a success . I consider 288,000 jobs created to be a significant progress. Youre seeing 50 consecutive months of private sector job growth and this is the third highest month of growth. So were moving in the right direction. When you factor in the revisions from previous months its over 300,000. And then you look across the broad ranging growth of last month, i mean you look at construction jobs, education and health, professional and Business Services, these are all middleclass and upper middleclass jobs. So the jobs that are being created are good jobs. And so were moving in the right direction. Weve got, you know, far more work to do. No doubt about it. And weve talked about this on the show a lot, about infrastructure investments, minimum wage, immigration reform, stills, all of those things skills, all those would enable us to pick up the pace of growth and all of those things historically have enjoyed bipartisan support including extending benefits for the longterm unemployed. Speaking of which jason ferman said that problem is not intractable yet but we need to be on guard against it becoming something structural in our economy. When you look at Participation Rate, this month, do you worry that it is, in fact, becoming structural . No. I mean you look at Participation Rates over the last few months. They bounce around, but they basically have been flat. And in particular, last month, the number of discouraged workers did not go up. I mean, we have to work on continue to work on the challenges confronting the longterm unemployed. I meet with them, you know, almost weekly and their stories inspire me. I met a guy in ohio who said, i got no quit in me because i have a 10yearold son. I never want him to think his dads a quitter. Thats why were fighting to extend benefits, were fighting to invest in skills so that they can get the jobs of tomorrow, and i Hope Congress will act. And i applaud senator heller, i applaud senator reid and senator collins and Governor Martinez and governor chaffe of rhode island theyve acted in a bipartisan fashion as has congress historically and i hope well get this done. Because, you know, were not a country who kicks people to the side of the road when theyve fall on hard times through no fault of their own and shouldnt start doing that. What are we going to do about this craziness with this Corporate Tax code that weve got u. S. Companies that basically are trying to change where they are located from the point of view of not repatriating capital . Dont we have to do something about this, all of us, to make it so that money comes back to the United States so more jobs can be created . Well, certainly the president s been talking about that for quite some time and he wants to reward people who create businesses who are creating jobs here. Hes put a plan on the table for some years and this is another example of something that in ordinary times, ought to enjoy bipartisan support. Just as his infrastructure bill, just as immigration reform, you know, enjoyed bipartisan support senate and would pass the house if they would put it up for a vote. I agree with you, jim, we should be moving forward to reward businesses who are creating jobs here in america and not outsourcing them overseas. Mr. Secretary, i would love to come back to the Participation Rate because i think its going to be a focus today. It appears that people 55 and older actually increased in terms of Labor Participation. Its not about people retiring but the civilian labor force dropped by 806,000 in april. The Participation Rate down by. 4 percentage points, lowest since 1978. I mean come on, what is going on here . Again, i mean look at the Participation Rates over the last few months. They bounce up, they bounce down. What i saw about last months numbers is that the number of discouraged workers did not go up. And what we usually see this time of year is that Seasonal Workers are preparing to enter the work force and what we saw last month is that they may not have prepared to enter then, and so im going to be watching this number carefully next month. And as i do every month. But you know, this is the Household Survey and the Participation Rates have been bouncing up and down over the last six months and well certainly be monitoring that. You know, you look at the Payroll Survey and you see, you know, 288,000 jobs and you see the adjustments from last month. You know, the economy is clearly moving in the right direction and we want to continue to pick up the pace and have more months where were creating, seeing, you know, 300,000 jobs being created like we almost saw last month. Well, well see if were on our road there on a broader Participation Rate. Mr. Secretary, thanks for your time as always. Always a pleasure to be with you. Secretary perez joining us from washington, the labor department, on the jobs numbers. I think he nailed the number. Thats why hes so happy. What do you think . Hes going to enjoy that duffel bag. Using 280 over and over again. Finally got it right. Watching the Participation Rate. Good day for them. Its a good day. The headline number is a great number. And great. You cant argue with almost 300,000 jobs being created. Threemonth average. On the end we want people hired. Im not talking about the bond market. Its great. Its great people get hired. Lets get to bob pisani, see whats moving on the floor. S p 1887. Hey, bob. And then, of course, thats good news. The market is actually fairly split. About even number advance in the decline stocks. The sectors are about split right now. One trader called it the incredibly great and confusing jobs report. Thats a good way to put it. That Labor Force Participation number jumping has muddled the picture. Part of the problem why were seeing a muted reaction in the stock market, is that its now a clouded report a bit. Not reporting enough clarity on where the market is going overall. You can see this in the if you look at the Interest Rate situation, the ten year. Traders were confused about how to initially read this and they looked at the bond market. You go from 2. 63 on the 10year to 2. 68, down again, a lot of confusion in the bond market at this point. We see Interest Rate sensitive stocks generally under pressure today. Look at utilities, for example, you look at reits, theyre among the downsides here. I want to switch and move to the ipo market and show you how much the wobbliness of the stock market, some of the selloff and the big momentum names has affected stocks. Look what happened overnight. Three pricings here, Ares Management, alternative asset manager, priced at 19, the price talk was 21 to 23. Papa murphys they priced at 11, thats the low edge, and now aldseyra therapeutics priced at 8. Two of the three priced below the range, one at the low end of the range. Ive tracked nine ipos since april 10th, 75 have priced below the midpoint of their range. Below their range. 75 . Thats according to Renaissance Capital here. We have a whole bunch of these companies sitting throughout. A dozen tech ipos waiting to go public. Box, remember them, cloud storage. They should have announced terms. Havent heard a thing. Thats a sign of stress in the market. Keep an eye on the ipo excuse me the etf for the ipo market. That symbol is ipo. The Renaissance Capital et f out there. When that starts to bottom you will see signs that things are getting a little bit better. Hasnt happened yet. In terms of earnings, estee lauder had a great number and increased their fullyear eps guidance. That stock is up. We are sitting near a historic high. Guys, right now, Ares Management, 1750 to 1850 are the indications. Back to you. Bob, thanks a lot. Cant take your eye off the bond market today. Rick santelli is in chicago with that. Hey, rick. No, you cant. And believe me, theres a big disparity between interpreting the data and what the markets interpretation is. As far as secretary perez, ill tell you what, hes talking about just like bouncing around, around this labor force Participation Rate. But were not bouncing around up here. Were bouncing around down here. See the distortion that hes trying to put forth is, were bouncing around. Now basically the same levels we were in december. No, no, no. Look at the following chart. Only one issue that matters. Were bouncing around at a level that in order to get to real comp when was the last time we were at or below this level was february of 1978. See, so were not bouncing around above ground. Were bouncing around in a cave thats underground. Now as far as the fixed income market, you know, listen, we created a lot of private sector jobs. The headline nonfarm was great. Now thats the one side. The establishment. The Household Survey was nothing like that. And the reason the market is doing this and well be talking about this with everybody, our guests, we have jim deanneco, the santelli exchange, you have 92 Million People, record high, that arent included in the labor force anymore. Whos going to take care of them . In the context of asking that question, think of all the programs over the last six years we havent mended. Now you know what the market is doing what its doing at least in part. Look at the charts, they all spiked, they like job creation but they want something sustainable. You cant create jobs on one hand and have structural issues. You cant blame them on the retired. Now if you look at the flattening yield curve, this shows that the feds offsides. Okay. Whether you look at 5s to 10s, the flattest since 12, about august of 12, 5s to 30s, the wider picture, thats brand new flattening going back all the way to 09 and look at the euro versus the dollar, the mirror image of the dollar index. Dollar index did improve because the euro initially looked at the headline number. See what the dollar looks like at the end of the day. Back to you. All right. Rick, thanks. Well come back to you, Rick Santelli in chicago. When we return, jim stewart, what he says about steve jobs and apple this morning and in his weekend column might surprise you, something you dont want to miss. The nations fifth largest pizza chain going public today. The ceo of papa murphys when squawk on the street comes right back. Right back. The jobs report is out. April nonfarm payrolls increased 288,000 jobs. Were you able to nail the number . If so youll be taking home the cnbc duffel bag. Signed by the entire squawk on the street gang. Find out if youre the lucky winner, later on squawk on the street. Street. Huh, 15 minutes could save you 15 or more on car insurance. Everybody knows that. Well, did you know that game show hosts should only host game shows . Samantha, do you take kevin as your lawfully wedded husband. Or would you rather have a new caaaaaar say hello to the seasons hottest convertible. Ohhh. And say goodbye to samantha. [ male announcer ] geico. 15 minutes could save you 15 or more. You are gonna need a wingman. And with my cash back, you are money. Forget him. My Airline Miles will take your game worldwide. What im really looking for is i got two words for you rewards. Theres got to be better cards than this. [ male announcer ] theres a better way with creditcards. Com. Compare hundreds of cards from all the major banks to find the one thats right for you. Its simple. Search, compare, and apply at creditcards. Com. First rounds on me. Everything looking good. Velocity 1,200 feet per second. [ man 2 ] youre looking great to us, eagle. 2,000 feet. Still looking very good. 1,400 feet. [ male announcer ] a funny thing happens when you shoot for the moon. Ahh, thats affirmative. [ male announcer ] you get there. Youre a go for landing, over. [ male announcer ] the all new cadillac cts, the 2014 motor trend car of the year. I dont have to leave my desk and get up and go to the post office anymore. [ male announcer ] with stamps. Com you can print real u. S. Postage for all your letters and packages. I have exactly the amount of postage i need, the instant i need it. Can you print only stamps . No. First class. Priority mail. Certified. International. And the mail man picks it up. I dont leave the shop anymore. [ male announcer ] get a 4 week trial plus 100 in extras including postage and a digital scale. Go to stamps. Com tv and never go to the post office again. All right. Take a look at ares at post eight. Priced at 19p. Opened at 18. 50. Asset manager 47 billion of assets under management and credit, real estate, private equity. We talked about what kind of opening they may have. We were basically on target. Yeah. You know, look, the enthusiasm for ipos has dropped dramatically. Yeah. Most people get burned. Another billionaire, they rang a bell, didnt hear it. Every time they ring a bell a billionaire is created somewhere. Tony is a billionaire now. Every time you hear that its angels wings. Million dollar angel sfwhings j. Crew going budget. The journal saying the retail chain is creating a new brand. It comes ahead of a possible ipo this year. The Company Looking for new sources of growth. J. Crew sales have been doing well but struggling to maintain some margins relying on discounts to lure shoppers. Cotton is an issue for some retailers. All the activities of the h and m level. Its interesting, two years ago when i did a documentary on j. Crew and its ceo Mickey Drexler he was focused on the idea of presenting a Value Proposition to the customer, not having a low price point but lower for the quality of goods. The quality of goods was so high that you were competing against the highest other purveyors of such goods and offering a better value. I dont know how this fits with that. Did you ever think that acquisition talk is for real . Fast retailing, might have been something to it. Private equity owner and have a opportunity to sell out rather than go public, slowly, you would do that. But that didnt seem to go anywhere. I wonder if this is a sign of strength or desperation . No. No desperation. I think its a sign of expansion. Like the old days. Banana republic. Starting an old navy kind of thing . Well, youve got the samplesp. What do you think . Im wearing a j. Crew. Isnt that the new line . These are years old. Im calling wardrobe right now. Tell them. He has two suits on. His pants are different from his jacket. Its friday. They wont give me a new sports jacket. Well get stop trading with jim in just a minute. Nute. Whon a certified preownedan unlimitedmercedesbenz . Nty what does it mean to drive as far as you want. For up to three years and be covered . It means your odometer. Is there to record the memories. During the mercedesbenz certified preowned sales event now through june 2nd, youll get complimentary prepaid maintenance and may qualify for a twomonth payment credit. Only at your authorized mercedesbenz dealer. Female announcer sleep trains interest free ends sunday. Its your last chance to get three years interestfree financing on beautyrest black, stearns foster, serta icomfort; even tempurpedic. Plus, get free delivery, and sleep trains 100day low price guarantee. But hurry sleep trains interest free for 3 event, ends sunday. Sleep train your ticket to a better nights sleep that corporate trial by fire when every slacker gets his due. And yet, theres someone around the office who hasnt had a Performance Review in a while. Someone whose poor performance is slowing down the entire organization. Im looking at you phone company dsl. Check your speed. See how fast your internet can be. Switch now and add voice and tv for 34. 90. Comcast business built for business. Time for cramer and stop trading. Okay. We see we saw this great number from lauder this morning. Ralph Lauren Trading up. A third of the troika, they trade together, kors. Kors, Herb Greenberg with the reality check saying be careful of some of their accounting. Steve mandel who taught me about retail when he and i were at Goldman Sachs filed he owns a substantial stake in kors. Kors surprising only up a buck. I think it can go much higher off of the troika. Mandel runs a large fund. If you think highend ralph lauren, people are spending again, its going to gravitate europe too. So i like kors here for trade this morning off of what im seeing from lauder and how ralph lauren has been going higher. I like that. All right. Mad money tonight . We have panera which has been disappointing. Theyre doing panera 2. 0. The ty Chicken Salad paid 9, seemed pricey for me. He we have lifelock, Identity Theft stopper. Quarter was not that great. We have to find out whats going on there. Both quarters not that great. Now companies both say their quarters are good. My judgment. Well see you tonight, jim. Yeah. 6 00 p. M. Eastern time. And this weekend. Jan hatzius on jobs and the head of expedia in just a moment. Customizable charts, powerful screening tools, and guaranteed onesecond trades. And at the center of it all is a surprisingly low price just 7. 95. In fact, fidelity gives you lower trade commissions than schwab, td ameritrade, and etrade. Im monica santiago of fidelity investments, and low fees and commissions are another reason serious investors are choosing fidelity. Call or click to open your fidelity account today. Welcome back to squawk on the street. Breaking news. March factory orders up 1. 1 . Not too bad. We were looking for a bit higher up 1. 5 . And last month, is 1. 5 but it started out up 1. 6 . Yes, theres been a lot of data but maybe the best way to look at the marketplace is basically 10year note yields at 2. 65 down one basis points on the week and that was last friday when there seemed to be a whole lot more anxiety regarding ukraine going into the weekend. But the day is short and geopolitics always seems to bubble up on fridays. Simon, back to you. Thank you very much. Rick. It is a big day, the least, of course, with the jobs figure. To Steve Liesman at hq. A lot of people pouring through this. What is your verdict sp. My verdict the 288,000 jobs created in april, Strong Enough to prompt a rethink of the economy and fed policy. Here are the numbers everyone is talking about. 288, way better than the 215 expected. March and february revised higher. The Unemployment Rate down by 0. 4. A lot because of the decline in the last line there of the Participation Rate, about 800,000 dropped out. That means on the year the labor force is even in very little in the way of average hourly job. Heres the key. We went into the number with the threemonth average job growth at 177. Now its near 240 or more than 60,000 per month higher than we thought it was. That prompts a comment from ian shepherd at pantheon saying the unanswerable question whether this leap in payroll reflects a postwinter catchup or the start of a sustainable run of stronger gains . John writing at rdq, however you slice and dice this report its a strong one that shows the economy has bounced back from the harsh winter weather. This report reinforces our view the fed will likely raise rates sooner march or april of 2015 and at a faster pace than the market expects. Bank of tokyo, says better start thinking rate hikes, not just winding down the qe bond purchases. Take a look at what im calling yellens dashboard when it comes to jobs and fed policy. Unemployment rate is lower. Sux stangsally. Longterm unemployed ticked down. Wage gains are flat and parttime for economic reasons are flat. Four indicators she says shes looking at for the broad view of the jobs market. Here are the details. Construction and manufacturing up 44, retail up 35, could be some seasonals in there with a late easter. Professional Business Services up 75. Temporary help always seen as an indicator up 24,000 and leisure and hospitality taking it cool with 28,000 up there. I think the fed will be reluctant to accelerate the timing of the policy response to expected growth. We did have a weak First Quarter growth an a snap back is in the forecast. I think the yellen fed will have to see strong evidence of sustained wage gains and inflation headed back towards 2 to move up either the pace of the taper or timing for the first rate hike mid next year. Guys . Steve, make mess wonder about how you put this report in the context of some of the other economics reports weve gotten lately. Construction jobs a surprise given the weaker housing data. 34. And First Quarter gdp, january through march and doesnt include the jobs report but 0. 1 growth. Does this make you think that was all really the cold weather . Actually, sara, to be perfectly accurate about it, were now tracking minus 0. 2 and maybe tracking even lower after this Industrial Production factory orders report that rick reported earlier coming in below expectations. I think a lot of it was weather and were seeing a snap back. I also think its probably likely some of it gets revised upwards a bit. We had like a 2. 8 Third Quarter that ended up being 4. 1. Same thing with the fourth quarter. Its not unusual too have large revisions here. I dont think the economy was as weak as all that in the First Quarter. It was weak. And whats also clear from the higher frequency data is were seeing a classic snapback as if it was weather. Its behaving that way. Smells like weather, looks like weather, probably weather, sara. Certainly thats the administrations take as well. Thanks for the perspective and analysis on the jobs report. Lets check out the market reaction. A favorable one. The Dow Jones Industrial average up 30 points. The nasdaq, s p higher. The dollar is stronger and treasuries selling off. More about market reaction, david kelly, with Jpmorgan Funds and michael ryan, chief investment strategist and head of ubs Wealth Management research. David in your notes you sounded very excited about the report. Does it change the course of policy at the fed which is really what the markets care about right now . Yeah. I think it eventually will. What i think this does is it undermines the feds forecast for unemployment itself. I mean remember the Unemployment Rate has come down from 7. 5 a year ago, to 6. 3 today, in a year that the economy has only grown by. 3 . Over the next 2 1 2 years the fed expects the economy to grow at a 3 rate but only has the Unemployment Rate down 0. 9 . Thats not plausible. What i think is going to happen, the Unemployment Rate is going to come down faster and cause people to question the feds forecast of the timing and speed of fed rate hikes. I think we may get somewhat earlier start to fed funds rate hikes in 2015 and they will be more rapid than the fed currently projects. David, what does that mean then for the equity market and the bond market . I think its okay for the equity market. When rates rise from a very low level it doesnt tend to hurt the equity market that much. I am surprised the bond market has reacted as well as it has to this report because i really do think it means a higher trajectory on shortterm Interest Rates over the next year or two and that ought to begin to feed through to higher longterm Interest Rates. Yeah. Were seeing yields lower. Michael, whats your take on the report . Are you as enthusiastic about the solid jobs growth and what that means for the fed pulling tightening earlier . I largely agree with what david just said. I would be careful at this point saying the fed will start tightening in april or may. Because quite frankly we have a lot of ground to cover before then. I will say that up employment report was by and large very, very constructive, not only did we get a strong number this month but the prior revisions to the last two months were strong as well. So to me on balance this validates the fed, continuing the tapering process and i think theyre on the course they set now. Again, if we see more and more evidence that payroll growth is accelerating, see more and more evidence that the economy is breaking out above this moderate trend growth then i think well see a reaction by the fed. I really think its premature to start speculating whether its in april or may or later in the year when they start tightening rates. David, i am just wondering whether we should change the premise of the question. At some point if the economy is Strong Enough, surely we dont have to worry about what the fed is doing. If rates are ultralow, they move 50 basis points, 1 , really doesnt matter if the economy begins to motor a reasonable escape speed. Wouldnt you have thought . I agree with that. Doesnt matter for the economy and probably doesnt matter that much to the stock market because i think an improving economy will offset the effect of rising longterm Interest Rates but does matter for the bond market and when people think about how they invest here, i think there is still i know its an old tune here but i think theres still time to be a little underweight equities and fixed income because the improving economy should push longterm Interest Rates up. Aagree with mike it is still probably a little early to pinpoint the exact timing of the first rate hike in 2015. You know, david, Hedge Fund Manager dan loeb in a letter yesterday talked about the current market environment. He said as the fed withdraws some of its liquidity its going to be a bumpy ride and that means its going to be good for stock pickers and traders. What does that mean for the little guy . You have a good handle as a wealth manager on what the Retail Investor is doing. How do you navigate through the bumpiness as the fed pulls back . Be a longterm investor. Thats the advantage a longterm investor has. You dont have to figure out the waves. You have to it figure out the tide. The tide is still one favorable for equities here. I think its as the market is much more close to fair value, though, the equity market is and the gains will be slower from here and i think, therefore, it is a bit more apologies for the interruption. Were getting tape here. The president with german chancellor Angela Merckle as they meet at the white house discussing russian sanctions. This is the chancellors first visit to the white house since that nsa controversy in which it was disclosed the white house had intercepted some of her calls. That might make the conversation somewhat touchy. Also some reports that the chancellor is going to deliver a message it to the president that russian sanctions in germany are not favorably seen, at least by the german business lobby. Lets get to john harwood at the white house with more. John . Not seen positively by the German Business Community or the Business Community elsewhere in europe, but i expect them to talk about trying to maintain a united front on sanctions. The nsa. They will have a News Conference, a press availability after their meeting around 11 45 and i think you can also expect, carl, the president to have some sort of remarks off the top about these stronger than expected jobs numbers. All right. John, well come back to you for that later this morning. John harwood at the white house. Another sign of the economic recovery. The ceo of host hotels, the countrys largest lodging reit, says Group Bookings are up. Hell join us live in just a few minutes. Later on, the ceo of expedia will join us with the first reaction to earnings last night. A lot more squawk on the street with dows close to session highs up 48. [ banker ] sydney needed some Financial Guidance so she could take her dream to the next level. So we talked about her options. Her valuable assets were staying. And selling her car wouldnt fly. We helped sydney manage her debt and prioritize her goals, so she could really turn up the volume on her dreams today. And tomorrow. So lets see what we can do about that. Remodel. Motorcycle. [ female announcer ] some questions take more than a bank. They take a banker. Make a my financial priorities appointment today. Because when people talk, great things happen. Mattel started in a garage. Disney started in a garage. Amazon started in a garage. The ramones started in a garage. My point . Some of the most innovative things in the world come out of american garages. Introducing the lighter, faster cadillac cts. 2014 motor trend car of the year. Aint garages great . On brand name mattress sets. Get three years interestfree financing plus, get free delivery, and sleep trains 100day low price guarantee. Sleep trains interest free for 3 event, ends sunday. Your ticket to a better nights sleep welcome back to squawk on the street. Check out shares of nutrisystem. The stock is moving higher off session highs on better than expected firstquarter results after the bell yesterday. Boosted by a more than 20 jump in customers even as it implemented a price hike. Sales increased by 22 . Nutrisystem is trading about 9. 5 to the upside. Simon, back over to you. Thank you very much, dom. Not just the jobs report today another indicator of economic recovery and Business Investment is flashing green. The countrys largest lodging reit says the big luxury and Upscale Hotels it owns across the country, Group Bookings, conferences, are finally back. The ceo of host hotels and resorts joins us in an exclusive interview. Good morning. Good morning, simon, how are you doing . Im good. Im pleased to see the groups are back. Tell us what youre seeing. Even the spend on food and beverage is beginning to climb. Youre exactly right, simon. Weve been during the downturn, what got hit the hardest in our industry was really the group segment. I think that was because just the strength of the downturn. Weve been a little bit disappointed over the course of the last four years with the speed with which its recovered, but these last two quarters weve seen very good results. This past quarter, we saw an 11 improvement in group revenues, really our best quarter in the entire recovery and attendant with that we saw a 9 improvement in food and beverage revenue that was driven by a 13 improvement in banquet revenues. All signs that Group Business is performing much better. In addition to that, if youre filling the hotels, these are big hotels that you own. If youre filling them with conferences you will not have to discount the rooms to other business travelers. The breakdown is fascinating. Very, very strong growth on the west coast, places like San Francisco, philadelphia and denver also doing well, not such good increase in revenue for available room on the east coast. Talk us through that very strong divergence. Some markets are even down. Well, simon, a couple Different Reasons for that. The west coast has been a clear out performer their last couple years, and i think part of the reason youre seeing that is both absence of supply and strengthening in the west coast economies. On the east coast the answer is a little more complicated. Washington was really comparing to a very good First Quarter last year because of the president ial inauguration and up in boston, where we had negative results, we had a very, very strong Convention Calendar in the first part of last year. I think that will start to reverse a bit later. New york, we had good growth because of the super bowl, but new york has been suffering a little bit in comparison to the rest of the u. S. Simply because theres been a lot of supply. Its an incredibly vibrant and strong market, but it is the only market in the u. S. Thats seeing a lot of supply right now. If life is returning to normal why are you active in d. C. Campaigning for an extension to the terrorism Risk Insurance act which they brought in after 9 11, which basically backstopped the insurers in the event of a terrorist attack. Its expired. Why should federal taxpayers subsidize you, other property owners, and the Insurance Industry . Simon, thats a great question and i would answer it by saying that i think the terrorism Risk Insurance acts is really one of our strongest economic or financial weapons in the fight against terrorism. The way that program works, is the federal government provides a backstop to the Insurance Industry and to real estate owners and Business Owners throughout the country but the first losses that would incur, be incurred by anyone, would be incurred by owners of businesses and by the Insurance Industry. Its only if we get an event that would be similar to the magnitude of what happened in 9 11 that the federal government ends up providing any funds. And the way the program works, theres an opportunity for the federal government to recoup those moneys too. I actually i think its unfair to characterize this as sort of a federal Insurance Program in a sense because that makes it sound like other Insurance Programs where the federal government is first in line. This is really a case where the federal government has attracted private capital to be in line first and only if we get a massive disaster does the federal government step in. Which you and i both know what happened anyway in this way it happens with private assistance as opposed to just the federal government. Ed, weve run out of time. Just br we let you go, you have released a rendering of what youre intending to do on the west side of times square. You own the marriott marquee. Just talk me through. How big is this tv screen that is going to dominate the square . Simon, this tv screen has 27,000 square feet of frontage on it. Its 77 feet high and 300 feet long. Its an led screen. We could show your tv this show on that screen some time. Thats how powerful it will be. I look forward to that. I think its going to be a fantastic presence on times square and a great opportunity for us to really contribute to an additional remaking of times square. Its interesting the screen is more valuable than shop space. I think theres a couple of terraces which will be the go to places for new years eve. Were out of time. Nice to see you again. Thank you for joining us. Simon, thank you. The ceo of host hotels and resorts. Thank you. News this morning that foot ware maker sketchers is exploring the possibility of purchasing an interest in the los angeles clippers. Joining us on the news line, rick, a sports analyst, Business Analyst at harvard law school. Good to talk to you this morning. Im throwing 20 bucks so i can get on the list of potential clipper owners. Want to join me . Yes. Were allin. The company says its a natural fit. How much precedent is there for a company that otherwise would be a sponsor, to actually own a piece of the team . Well, theres a lot of precedence for that. Sponsors can take individual equity pieces for this. This is now race for announcement. Everybody wants to announce a deal because, you know, Donald Sterling bought the team in 81 for 13 million and now the more people announce the higher the value is going to be at auction. The last time this was done in los angeles where baseball kind of held it in trust, started an auction, look what happened. Dodgers, 2. 15 billion. Were bidding the price up here. You argue if sterling wants to keep as much money in his pocket as he can, you would do this quickly. You dont get tied up in trying to filts fight it in litigation. Im a lawyer. The nba has significant momentum. Their franchise value is about 635 million, up 25 , tv dollars, new tv negotiations will start for a 2017 contract. Its in everss interest to move it forward. If Donald Sterling decides to give his lawyer a rest and do transaction instead of litigation, he might be looking at a billion. If fans stay away, doc rivers doesnt coach under a turbulent cloud of litigation, say it sold for 600 million. That 400 million may not be important to you or me but important to Donald Sterling. As far as sketchers go, we dont talk about them a lot, after the marathon and now this, would you have expected a move from a company like this. Brilliant marketing move. State farm is involved in a lot of this stuff. They also were involved in the clippers and backed off and didnt back off and motors virgin america, a lot of brands affiliated with the clippers. Farmers decided they would sponsor the name of a big deal in l. A. That never happened. Its go ahead for sketchers, the guy that won the Boston Marathon is a sketchers guy and he said nobody ever gave him the chance. Sketchers did. Its about corporate branding. Whether they end up having a piece of the clippers or not it is a brilliant pr move. Clearly it puts the pressure on Donald Sterling, rick, but he still has the ownership here. Do you think he will do Something Like a divorce, for instance, to complicate the sale some. Well, there are a lot of divorces that complicate sales. Look at the mccord family. Sometimes its not about love, its about business. If you want to move this along as quickly as you possibly can for the sake of your brand value, whether you love your wife or partner or whether you like your nba partners, you need to make it clear that the lawyers try to get this deal done is a part of a transaction in the next couple weeks, not just a vote to kick him out of the league. No doubt he does sell. He is forced to sell the team. All a lawyer always paid to have doubt in my mind. Im not sure whats going to happen. My prediction four months from now the nba looks back and says this was a watershed moment for usp. The players united. Adam virl a great leading. Donald sterling out. We have a billion dollar franchise on the books and a great market moving on to the next level. Thats what you hope and i think thats whats going to happen. Talk about a baptism by fire for a new commissioner. Thanks for the color. Rick horrow joining us from harvard law school. Talk to you soon. Maybe a bidding war between sketchers and oprah. Coming up goldmans chief economist jan hatzius joins us on set. What he thinks of todays job number. Were back after a quick break. The jobs report is out. April, nonfarm payrolls, increased by 288,000 jobs. Were you able to nail the number . If so, youll be taking home this cnbc duffel bag. Signed by the entire squawk on the street gang. Find out if youre the lucky winner. Later on squawk on the street. Requires precision and anattention to detail. G it takes knowledge, hard work and a plan. At baird, we approach your Wealth Management strategy that same way. As an Employee Owned firm we have the freedom and resources to create customized financial plans built to last, from generation to generation. Well listen. Well talk. Well plan. Baird. Whon a certified preownedan unlimitedmercedesbenz . Nty what does it mean to drive as far as you want. For up to three years and be covered . It means your odometer. Is there to record the memories. During the mercedesbenz certified preowned sales event now through june 2nd, youll get complimentary prepaid maintenance and may qualify for a twomonth payment credit. Only at your authorized mercedesbenz dealer. Today is friday today, we greet you. Treat you. Care for you. Today, you can come to Cleveland Clinic for anything, everything or just to get that thing checked out. Big, small, and yes, the best heart care in the nation. Its here everyday, for everyone. Thats the power the power, thats the power of today. Cleveland clinic. Call today, for an appointment today. Became big business overnight . Like, really big. Then expanded . Or their new product tanked . Or not . What if they embrace new technology instead . Imagine a companys future with the future of trading. Company profile. A Research Tool on thinkorswim. From td ameritrade. Were just looking at a record high on the s p 500 on the back of the stronger jobs number out for april. Dig deeper, wage growth is stagnant. In our series on where the jobs are we found one Company Bringing high paying jobs to an area thats been bleeding jobs for decades. Mary thompson joins us now from global foundries Training Facility in malta, new york. Hey, mary. Hey there, sara. You know malta is about 20 miles north of the state capital of albany and its not the first place that you would think of when you hear hightech manufacturing but there is a 3 million square foot campus with a massive chip making facility here. And this year, global foundries plans to hire 600 to 800 new workers adding to its 2200 person work force. All at good salaries. Heres mike bruiseso. I can tell you that an average salary high to low end, is about 90,000 for a rollup for a salary. So what kind of workers are they looking for . All kinds. They need engineers with fouryear degrees, they need technicians with Associates Degrees that are basically the mr. Fix its of this manufacturing process. Now, we cant show you the real facility because its a clean. Were not allowed in here. Before anyone starts working here the head of Technical Training says they have to come to this lab to learn about the thousand step process it takes to make a single semiconductor and about the multimilliondollar machines it takes to run that process. It allows them to learn how to use workmanship skills, hand tools, things like that, and then it also takes them through a trouble shooting component through the megatronics portion, learning how electronics, mechanical, pneumatics, all these things tail together to create an assembly line. Now when global fountries opened the plant in 2012 most of the workers from overseas but its been working with Community Colleges and local high schools to basically start classes that would help them get the workers they need with the skills they need. Global foundries wouldnt be here if it wasnt for an aggressive tax package and aggressive sales pitch from the state of new york, though, and were going to have more on that story coming up on power lunch. Back to you. A busy afternoon with you for you with all that training. Thats right. Thats right. Theres a lot to learn, simon. A thousand steps. Yes. Thank you. Mary thompson, in upstate new york. Straight ahead on the program a big day deserves a big guest. Goldman sachs chief economist jan hatzius will join us live at post nine. Post nine. Passion. Became your business. At t can help simplify how you manage it. So you can focus on what you love most. When everyone and everything works together, business just sings. Could mean less waiting for things like security backups and file downloads youd take that test, right . Well, what are you waiting for . You could literally be done with the test by now. Now you could have done it twice. This is awkward. Check your speed. See how fast your internet can be. Switch now and add voice and tv for 34. 90. Comcast business built for business. Goldman sachs predicted 220,000 jobs added in april. We got to 288. Some worry about some of the internals. Here to join us and talk about that jan hatzius chief economist with Goldman Sachs at post nine. Great to have you. Good morning. Somebody said its the most hollow headline beat in a while. Do you agree. I donchs think so. It was a good headline beat. Survey was generally firm on the payroll numbers. The average Hourly Earnings number was soft but that confirmed there is an absence of wage pressure still. So thats not good for longterm Household Income growth. We sort of knew that. Overall a Glass Half Full report. Did the Participation Rate take you by surprise . That was a little disappointing. The Household Survey was more mixed and we are now back to the participation levels that we had in december. That said, i think if you look at the Household Survey over the last four months in 2014 to date, its actually pretty encouraging. Youve got a decline in the Unemployment Rate that is all driven by strong Household Employment growth. Were making progress. The wage and price numbers show that were still not close to full employment, but we are making progress. Is it enough to get the fed tightening story going here . I mean, i think at the margin, it points in that direction because overall its a stronger report. I think it confirms the feds view that the First Quarter gdp number and some of the weakness in the First Quarter was probably temporary. But theres enough mixed stuff in the report i think especially as far as the inflation pressure is concerned, that it doesnt really, you know, make a major difference in terms of how people think about it. Do you think the weakness in the First Quarter was temporary . Yes. I do. Okay. And i think the numbers that weve gotten over the last six weeks have generally confirmed that. Can i double back on whats happening with the Participation Rates. People will struggle with the fact that over 800,000 people have left the work force and many of them are in that key 25 to 54 age range. What is happening there . I mean, why should that happen . Month to month a lot of things can happen in the Household Survey. We see some huge swings from one month to the next. Its a pretty small survey. The sampling error and nonsampling error in the surveys is big. I would really with the Household Survey want to focus on a longer time period. Thats my general refrain. We discussed this in the past with respect to all Economic Indicators but with respect to the Household Survey. But at the margin it was a little disappointing because there had been sort of a tantalizing improvement in Labor Force Participation and weve now given that back. Well see what the next report brings. How do you think were tracking in terms of meeting the feds gdp forecast for the year . 29 . Were a little behind. I dont think well be that far away in the end but if the First Quarter is 0. 1 or slightly negative do you that number is going to stick . Right now weve only got one indicator thats been released since the preliminary report and that points to a downward revision. There is other stuff that will come out. First quarter will be weak and you need strong growth in the remaining three quarters to get close to it. It will be pretty strong, but maybe slightly south of what theyre predicting. How are we set up for Second Quarter . Can we get close to 3 . Into for the Second Quarter, we think 3, it could be a little better than that. So, you know, you do have to see that in conjunction with what came before but i think things are picking up. Jan, where does this leave us on forecast for corporate earnings and therefore where the stock market in a theoretical sense should be trending . I think in general its pretty positive because were getting decent growth and were getting still pretty low wage growth. Thats very double edged, of course, because it does mean Household Income growth is still not as strong as we would like to see, but from a cost perspective and margins perspective its a positive data point i think. Everybody, all the bulls on the economy argue capex, Business Investment did not look good, housing investment. Do you think capex hopes are overdone . No. I am siding with the optimists on this. I think that while the First Quarter was weak, the more leading indicators of Capital Spending are looking quite a bit better. If you look at the capex components of the regional fed surveys, those have clearly picked up. I think well see a good bounce back there. Housing i think is looking softer for sure. Thats a little more of a puzzle frankly and more uncertainty around that. On capex im a little more optimistic than six months ago. Im curious about your read on the consumer. The most important for gdp. We just got declining revenues for kraft and kellogg and basic consumer companies. J. Crew looking into a budget store to serve that customer that it gets from its outlet. What is your read on the consumer given the fact were still seeing flat wage growth . Wage growth is pretty weak. Thats a negative. On the other hand, the tax increases of 2013 that weighed on consumer Income Growth last year are now pretty far in the rearview mirror. Despite the weakness in wage growth still seeing better growth and real disposable income, little over 2 this year so far last 12 months. And then i think there will be a positive wealth effect. I think theres still some room for the savings rate to come down bit house prices up, equity prices up, so overall, i think well still get close to 3 Consumer Spending growth. A tenyear yield range remains tight in your view in the near term . Probably relatively tight. Although we think over time as we twogo into the later go into the later part of the year and 015 its likely to trend up slightly. Thats a consequence of an economy emerging from the deep freeze and, you know, we will eventually get to higher shortterm rates. [ inaudible ]. Higher shortterm rates eventually. Still a long time before we get there. As time passes if we dont get knocked off the current course you will see an updrift in rates. Jan, thanks for coming by. Have a good weekend. Jan hatzius. We are flirting with record lies on the s p 500. To dch for a market flash. All right. Sara, heres one moving in the opposite direction. The debacle of the day, endosite, getting hammered on news the Ovarian Cancer drug its codeveloping with merck failed a late stage trial. Its a smaller cap, one of the pharmaceutical biotech names, still worth noting. For merck see theyre trading down about 1. 5 in todays move. Simon, back over to you. Thank you very much. Up next on the program, the first on cnbc interview with the ceo of expedia. Can the Online Travel giant continue to compete with the likes of google, making bold steps into the world of travel and tourism. [ banker ] sydney needed some Financial Guidance so she could take her dream to the next level. So we talked about her options. Her valuable assets were staying. And selling her car wouldnt fly. We helped sydney manage her debt and prioritize her goals, so she could really turn up the volume on her dreams today. And tomorrow. So lets see what we can do about that. Remodel. Motorcycle. [ female announcer ] some questions take more than a bank. They take a banker. Make a my financial priorities appointment today. Because when people talk, great things happen. On car insurance. Everybody knows that. Well, did you know that game show hosts should only host game shows . Samantha, do you take kevin as your lawfully wedded husband. Or would you rather have a new caaaaaar say hello to the seasons hottest convertible. Ohhh. And say goodbye to samantha. [ male announcer ] geico. 15 minutes could save you 15 or more. Visit truecar. Comoney,com,t and never overpay. Yers remorse. A good deal or not. Okay, this is the price,sman comes [ mand youre like. Ells you, thats why i got a new windows 2 in 1. It has exactly what i need for half of what i thought id pay. And i dont need to be online for it to work. It runs office, so i can do schedules and budgets and even menu changes. But its fun, too with touch, and tons of great apps for stuff like music, cause a good playlist is good for business. I need the bosss signature for this. Im the boss. Honestly i wanna see you be brave [ male announcer ] when fixed income experts. Work with equity experts. Who work with regional experts. Who work with Portfolio Management experts, thats when expertise happens. Mfs. Because there is no expertise without collaboration. Expedia has beaten expectations with its earnings results. Notable 19 jump in revenue as the Online Travel giant spent more than 600 million to boost sales in just the last quarter. Advertising its brands like hotels. Com, hotwire and tra vargo. Delighted to welcome back to the show donahoe khosrowsha show dara khosrowshahi. Good to see you again. Good to see you. Thanks for having me. I guess this quarter, the big change is the fact that youre now not only running all your existing businesses but also the backend and the supply for travelocity. How did that change what you came up with . Well, we really wanted to align our supply with demand and make sure were going out there and getting the hotels that consumers want. We really want to align the supply group with the brands in a much smarter way and we think that the new structure brings that together and certainly shows in the travelocity results were seeing early on were pleased with integration and were very pleased with how the travelocity partnership is going. You added another 30,000 hotels to the stable, which is important longer term. The analysts are focused on the fact that the number of room nights you sold rose by 24 on the quarter. How is this initiative that you rolled out last year whereby people can pay for the room on your site, or pay for the room at the hotel, change the dynamic of what youre doing . Well, its going great. From a Hotel Partner perspective, every hotel that does business with us wants more volume and from a consumer standpoint we are allowing consumers to choose how they want to pay. There are certain consumers who want to do business with us. They dont want their credit card, for example, maybe with a front desk clerk et cetera even though our Hotel Partners take great care and some consumers who want to pay when they stay, pay at checkout, et cetera. Our ability to let the consumer get what they want is making us Service Better expedia hotels. Com for the consumer and drives a lot more business for our Hotel Partners. Its been a win win. Were expanding etp on a global basis and happy with the trends wering me. Im not sure if you seen a note out by ken at evercorp. Hes saying one of the central beings that runs through your industry is being challenged the idea in return for you selling or marketing a hotel room for a percentage of the nightly rate you say to the hotel look, make sure you dont offer it anywhere else at a lower price than were putting it out there for google or however youre selling it. We call this rate parody. What ken is saying is social media is beginning to change that. And because the hotels can work out who an individual is theyre moving away from their agreements with you an doing cheaper deals in an opaque way. Is that ru . You know is that true . I think that the standard call it retail rate model in general is which has been the way that weve done business for the last ten years, is going to become a smaller part of the way we do business going forward, and that not only applies for the hotel direct but it applies for the hotels and how they work with us. We are going to be able to offer hotelers, to show very specific deals to small segments of the population whether theyre facebook fans, whether they are tourists coming in from indonesia, for example, were going to be much more flexibility about how we allow hotelears to market through us, the same technology through facebook, the same technology is being launched for google. As long as a Marketing Partner were flexible, building great technology, we will be able to grow. You see it in the room night growth that we had. 24 room night growth is healthy and we expect the trends to continue to go forward. My question then would be whether google is already where you say where you might be in the future. Im quoting from this note. We find that googles hotel finder through being plugged in the booking engines and knowing the personal identification of the traveler is gypping to show rates now beneath those sets under rate parity provisions, is that correct . We are able i dont know specifically what Google Hotel Finder is doing. We know that our volumes on Google Hotel Finder are growing and its a healthy channel on us. Were able to hover hotels the offer hotels through twitter and facebook. Its happening right now. Dara, im curious about your take on air b and b and the fact that it is a disrupter of the hotel industry. Do you think its making a dent in the market share of hotels . Not yet. You look at the hotel numbers coming out, the theyve been great. Rev par right now is growing 6 to 7 , almost every single Hotel Company out there who has reported results has reported really good results. The question is, not two years from now, but five, ten years from now what effect will that have on the travel industry and our reaction has been to experiment with alternative lodging through a Good Partnership with home away to get their Vacation Rentals on to our listings as well. We believe that the greater amount of choice we bring to consumers the better and were certainly working on that not only adding hotels but also adding Vacation Rental properties through home away. Dara, were out of time. Want to ask you one last question, one of the bets you made you would integrate everything on Single Technology platforms and bring the brands together and the technology would lead. Thats not the choice that priceline made. Its operating everybody independently. People will look at the two stock charts of you versus priceline and may say look, dara, is this technology bet you made going to pay off longer term . Is there something core to the business that we will see in the future that will drive you above priceline or close the gap . To be specific, the technology for each of the brands is separate and each of the brands are quite independent and quite entrepreneurial and move quickly. The bet we made in the Technology Platform resulted in our revenue accelerating significantly over the past two years. So were very, very optimistic about where were going. Theres a trillion dollar market. I dont think its a priceline or ourselves, either or. Both companies can thrive and we have over the past couple years and expect the same going forward. Its always good to see you, dara. Thank you very much for spending the time. Dara khosrowshahi, the ceo of expedia. Still ahead on squawk on the street, if steve jobs were alive today. Would he be in jail . Thats the question jim stewart is asking in his latest column. Hear him talk about what he means a little later. Squawk on the street will be right back. Theres a saying around here, you stand behind what you say. Around here you dont make excuses. You make commitments. And when you cant live up to them, you own up, and make it right. Some people think the kind of accountability that thrives on so many streets in this country has gone missing in the places where its needed most. But i know youll still find it when you know where to look. Youve reached the age where you know how things work. This is the age of knowing what needs to be done. So why let erectile dysfunction get in your way . Talk to your doctor about viagra. 20 million men already have. Ask your doctor if your heart is healthy enough for sex. Do not take viagra if you take nitrates for chest pain; it may cause an unsafe drop in blood pressure. Side effects include headache, flushing, upset stomach, and abnormal vision. To avoid long term injury, seek immediate medical help for an erection lasting more than four hours. Stop taking viagra and call your doctor right away if you experience a sudden decrease or loss in vision or hearing. This is the age of taking action. Viagra. Talk to you doctor. Trwith secure wifie for your business. It also comes with public wifi for your customers. Not so with internet from the phone company. I would email the phone company to inquire as to why they have shortchanged these customers. But that would require wifi. Switch to comcast Business Internet and get two Wifi Networks included. Comcast business built for business. Stocks just turning negative for the session. Lets get to the cme youp. San telly here. Good morning, rick. Good morning, sarah. Before this, viewers, listeners, three or four minutes with the boys. Charlie, jim and then seamlessly right into dotcom and streaming right now. Welcome. Jim, hey beaterman, beaterman, beaterman. Stocks are down. Interest rates 258. The low close for the year. This is really big time. Why do you think its happening in the context of todays data, jim . I think if you go before todays data, look at surveys of money managers, im not exaggerating saying 100 short the market. Everybodys short, everybodys going to the bond market. Everybodys demanding rates go up but theyve already sold. The sell trade is already occurred an enthats why you cant get any kind of movement down in price or up in yields in price in bonds right now. Theres no one left to sell. Charles, you wanted to point out the bonds. Give me your stock interpretation. The economy looks a little bit better but still weak and last year 450 billion of companies bought back 450 billion than issued in new shares. 150 billion into equities and came as a result of qe2 and this year 150 billion year to date flow shrink already. It has nothing to do with the economy. The markets going up. For the year, anoupsed m a globally, 1 trillion. Yep. We have a minute left. All right. 288,000 on headline. Private 273. All pretty good. Household surveys lost. The key is 6. 3 on the Unemployment Rate. Quickly, how do we get there and do you believe this is good or bad for the economy in total . Fallen Participation Rate is 800,000 jobs lost. We had a Million People lose Unemployment Benefits a month ago. People left the workforce. Not that the economy actually created jobs to lower the Unemployment Rate. We have 92 Million People considered able to work that are not working, not part of the workforce. We were humanitarian economy. Were printing money and giving it to them. Go to school. Get money. You dont go to school. You get money. But i think americans want to work. We have mr. Bloomberg on this morning, exmayor. God bless him. He called in it a positive way and said theres opportunity and theres results. Okay . From opportunity. But it is the opportunity we need to concentrate on. Helping people takes you so far. Yes. All right. You know what . Carl, sarah, ill toss it back to you but realize were on dotcom. Were going to go there and spend another five minutes talking to the boys. Back the you. See you online. Rick san telly in chicago. Check out papa murphys opening up slightly higher here. Talking to the ceo of that new issue later on and the dow in the red with the nasdaq, s p come off its intraday high by about eight points or so. Talking about the markets later on. Did you nail the number . Find out if youre the winner of the duffel bag signed by the whole team here at squawk on the street. [ man 1 ] were now in the approach phase, everything looking good. Velocity 1,200 feet per second. [ man 2 ] youre looking great to us, eagle. 2,000 feet. Still looking very good. 1,400 feet. [ male announcer ] a funny thing happens when you shoot for the moon. Ahh, thats affirmative. [ male announcer ] you get there. Youre a go for landing, over. [ male announcer ] the all new cadillac cts, the 2014 motor trend car of the year. This mornings jobs numbers shows up 288,000 beating most expectations. Did you nail the number, though . All this week we asked you to tweet us the predictions. Winner gets a duffel bag signed by the gang. Im not people might have guessed the number and combing through the results now. Im not sure everyone guessed what the Participation Rate would be which is the big talker today. Is that required, part of the competition . Maybe we should more advanced competition. Now that the Federal Reserve abandoned the Unemployment Rate as a target for fed policy and get into the start to ask people to predict the u6 Unemployment Rate. Nail the u6. Not nail the number. Nail average Hourly Earnings. Which we saw flat. Theres a lot to debate and the bulls and the bears on the economy. Whoever would have thought it . Its a strong report, carl. Strong report and revisions. I know. Market doesnt see it entirely that way. Theyre all fed focused. Yes. Good weekend to you, both. You, too, carl. News maker after news maker, if you missed anything heres your squawk in a week. Good friday morning. 11 00 a. M. On the east coast, 8 00 a. M. Out west. Heres what were watching for you this morn pentagon. A headline of jim stewarts latest column in the New York Times goes like this. If steve jobs were alive today, should he be in jail . He will tell us what hes talking about later on. Samsung stole the show with the infamous ellen selfie. Also, could we get a filing for the albaba ipo next week . And the u. S. Economy added 288,000 jobs in the month of april. So did you nail the number . Our winner, one lucky winner, will join us later this hour. Joining us this morning, cara swisher, 30 rock this morning and our own jon forte back here safely at post9. Good morning to you guys. Hi. Hi. A news alert of alibaba. Cara, do you have any information we should know . The earlier this week everybodys expecting it last week and never reported that and didnt think it was true and many people thought it was by this week and we say early next week right now. Thats when the filings going to be and that will have a lot of information, obviously, about the company itself. Yeah. Thats going to have a multiple ripple effects even though some this week, jon, tried to argue silicone valley doesnt care about the chinese issues and so Many Political walls between us and them. This is just so big that its going to affect the way people talk about momentum stocks. I think maybe in a similar way to how the whats app acquisition affected the mood in the valley. Im interested what you think about that, cara. Clearly not just the yahoo linkage but how people feel about the ipo market overall. I dont think thats true at all. People think about alibaba. Getting more aggressive in silicone valley aenl elsewhere, buying up companies. Several of the companies of asia and i think everybodys super interested in how it does and what it does next. Start buying u. S. Companies and things like that. Thats what i was saying, cara. Yeah. Whats interesting is their first move will be and what theyll do. Can you imagine them buying yahoo . They can do it. Whens the move once they go public . There would be a lot of irony in that move . It would be great. The first investors, cara. People talking about, okay, whats the holdup behind the scenes . Bankers and lawyers met with the company at the end of march. Are there maybe some other issues about maybe the revenue stream from counterfeit goods tripping up auditors . I think this is a huge ipo and one of the biggest coming this year or one of the biggest ever in the internet second tor i dont know. Its a massive, massive ipo to be done just right because its a Chinese Company and people dont know it as well as they should. Yeah. Even the metrics come with the delay and makes it even more confused. Good nugget, cara. Better get the rest this weekend. Thats for sure. Move on to the tech earnings. Linkedin slipping to the downside after a 13 million loss in the xwaerquarter. Expedia falling and open table a winner so far, earnings Beat Estimates and revenue lower than expected. You want to give the group a grade today, jon . The group . I dont know. I look at linkedin separately. We dont talk about it often in relation to twitter. They have probably 200 million active users. But not quite there to twitter. Linkedin with multiple revenue streams. Not just their ad business and smaller than the Human Resources side of the business. And jeff wiener on the call talking about the effect where more of the content stuff theyre doing is increasing engagement for the things making them money so while there are some questions about exactly how high the valuations are right now and how sustainable that might be even though they have come down a little bit, comparing it to twitter is where i am. Cara, investors raise searches of the cost of open table. 23 due to higher spend of online market. Linkedin at 47 . These are established online media companies. You oftentimes see the costs rising rapidly for younger startups and seeing the Public Companies with the costs reintroduced is startling. This is a point. Attracting subscribers and noisier market. For open table and expedia, think about it. Hotel tonight, all kinds of exciting new things are coming and they have to distinguish themselves. Its a little bit of a ground war with the companies. Even uber with lift coming after it. Everybodys got to way ahead of lift obviously in terms of users and drivers and things like that. They have to continue to market and attract users. I think it is important to point out, linkedin is doing their own Data Center Migration and capital costs included here, also they have a sales force thats selling their solutions kind of on the ground feet on the street not just self serve and costs there, too. That they talk about. Different than the other guys. Expedia, the point the stock turned around, a blowout quarter and bid it up in the after hours and reversed talking about google on the Conference Call and if we compare for travel Search Market we can hold our own. Do you have confidence expedia can hold its own there . Google can ruin businesses quickly if they dont get the traffic that they get. Its a critical part of the internet infrastructure and so even small changes that they make, some of them are for the best, trying to service the best content or impact a business and every business has to Pay Attention to it. It is possible to make too much of the google effect. There are fears about google taking out yelp. That didnt exactly happen. So well see. Meantime, apples new Senior Vice President of retail on the leadership roster on the companys website signaling the official entry at apple. She was ceo before moving to apling. This is the head shot and reports to ceo tim cook. Cara, how quickly should we look for changes in the Retail Division now that she is fully in cupertino . I think she is a dynamic and exciting executive. Im eager to see what she does there. I think she is tremendous in terms of marketing, probably more celebrities, she was heavy of celebrities at burrberry and they need marketing magic. Steve jocks was the marketing genius at apple. I think bringing someone in savvy is an important move for them. Funny you mention that. We remember ellens selfie at the oscars, a huge hit for samsung. Apple taking a page looking to hire what some call a buzz marketing manage we are the goal of as you say getting high profile users to hold an apple phone and take a selfie. Its true. This sort of work getting apple products in the hands of celebrities, Steve Jobs Used to do that himself. Martha stewart complaining about the ipad not working. This is the one steve jobs gave me. Apple doesnt have anybody with the spotlight in exactly that way in the executive ranks until maybe now with angela joining. Its interesting to see how she navigates that cultural issue. She is used to being outspoken, out front. Tim cook not the same executive. She has to go from uk to california. Shes american in hmid western we talk about the wearable tech devices, google glass or something on the hand, obvious, one of the hallmarks of burrberry is more subtlety to the plaid and some hope that she could make these products a little bit more assimilated into the every day wardrobe. Do you think thats possible . New yorker said she needs to be more burberry. I think it fits well with her sensibility. You know, i think what will be interesting is how much they put her out there. I put her out there all the time. She is dynamic personality and not going to be involved in products but head of Retail Division and selling the product that is are made at apple. They have johnny ive there and talented product people and not so sure she is leading any kind of product. I wouldnt be surprised at all if the retail strategy, any changes there, are actually led by the changes that apple makes in the product lineup and decide to put something in the store has a lot to do with what that is and what experience they want people to have going in. I think her relationship with johnny, hes got something to say about how everything looks is a key going forward. Other retailers trying to mimic apple on the retail side, theres question about whether apple needs to innovate what its already done with replication there. The stores need some i think the stores need refreshing, too. I love the stores and now at retail, you have to be reinventing and interesting to see what she does in the stores but they need refreshing, too. Cara, thanks for the scoop about alibaba. Hopefully talking to you early next week. Thanks. Jon forte will stick around for the hour. Papa murphys on the market. Is it one that you should think about buying . The ceo will make his case in a moment. Plus, if steve jobs were alive today, should he be in jail . Provocative question and one that jim stewart is asking in the latest column. It all has to do with antitrust violations. Stewart will make that case a little bit later on in this hour when we come back. With all the opinions about stocks out there, how do you know which ones to follow . The equity summary score consolidates the ratings of up to 10 independent Research Providers into a single score thats weighted based on how accurate theyve been in the past. Im Howard Spielberg of fidelity investments. The equity summary score is one more innovative reason serious investors are choosing fidelity. Call or click to open your fidelity account today. Whon a certified preownedan unlimitedmercedesbenz . Nty what does it mean to drive as far as you want. For up to three years and be covered . It means your odometer. Is there to record the memories. During the mercedesbenz certified preowned sales event now through june 2nd, youll get complimentary prepaid maintenance and may qualify for a twomonth payment credit. Only at your authorized mercedesbenz dealer. Dow lost some ground. Look at materials. One of the winners on the s p this morning. Dominic working on that all morning. Neck and neck with energy for the best performing sector today. Materials rising on the back of good Economic News on the labor front, of course. Air gas raising dividends 15 earlier this week and the mining company, alcoa, u. S. Steel all leading the way higher. You can see there decentsized gains 1 to 2. 5 stocks and materials. Back over to you. Thanks so much, don. Meanwhile, shares of papa murphys opening higher on the nasdaq debut. But is this franchise model a buy . Ken caldwell is ceo of papa murphys. Thank you for joining us. Thank you. Good to be here. You priced at the low end of the range and even within the range its something to be proud of. Watching the stock go up 5 today. How do you feel . Very good. Its great to achieve another key milestone in the growth trajectory for papa murphys pizza. You were always a private company before selling to lee equity in 2010. At the time people said its a hallmark of how frothy the credit market had become at too time. Growth, continued growing. Added a couple hundred stores and talk about what you learned and what sort of lessons tom lee brought to the table. Its been great working with tom and the entire team. Theyre great partners. They really know the business. Theyre curious about the business. Theyre partners to side by side with you to make sure that youre growing the business from a perspective of staying on vision so theyve been great partners to work with. You will split some 64 million in proceeds with lee and to pay down some debt that came as part of that buyout. What will the rest of the proceeds be used for . Paying down debt and other corporate expenses. We have the right team and the right plan right now. We have 13 straight quarters of samestore Comp Store Sales growth and setting ourselves up for a nice growth trajectory going forward. What is that trajectory . You have no stores in the new york area. Think about changing that. But 1,400 stores, you add roughly 100 a year in terms of the chart that i saw. How many more are you thinking about adding and where are you going to see that growth . 1,400 stores as you say and modeled 4,500 stores for the u. S. Alone and before international and so weve got a nice as you say little over 100 stores this year, 105 stores over the coming year. We see Comp Store Sales growth a little over 2 and real excited about this coming here. Many people think, okay, this is a pizza store. Youre going and picking up a pizza like a dominos or pizza hut but the broll on the screen right now, this is what you guys call take and bake and like subway more so. They put the toppings on the pizza and they bring it home with them. How do customers wrap their heads around bringing an uncooked pizza home with them . They love it. We have some of the highest loyalty scores in the entire industry. Families love us and particularly moms really love us because we fit into their life. People looking for fresher, Higher Quality pizza and food. And our as you say the concept all about coming in. Freshest ingredients. Fresh dough and cheese. They come in and walk down the line, they create a pizza fresh, take it home fresh and then they put in it their ovens and bake it fresh and moms like to do that. They feel good about what theyre serving their families and fits with todays consumer very, very well. We also have one of the lowest prices in the category. So this is something that families can do every day. There are a lot of fast casual names experimenting in pizza like chipotle. How much competition is there in the industry . Would you think about getting into a different type of food line to challenge them . Yeah. Well, ill tell you, we see theres so much growth in the business and core Business Model we have, in terms of were kind of a unique category. Create, take, bake fresh pizza is something that doesnt exist in the form we have across the country. And so, we really feel like were a category of one. The fast casual pizza area, small but growing quickly. We have made a minority investment in a project pie in that area. We see it as a complimentary. They appeal to the young, single couples in urban areas. We appeal to families. Families love us, particularly moms and dads trying to make fresh pizza decisions for their family. Ken, investors love you today. Stock up 6. 1 behind you. Congratulations and best of luck going forward. Thank you so much. Ken caldwell, ceo of papa murphys. Do you want to cook more but dont have the time . Thanks to new funding, the xens worth half a billion dollars and how it works when we come back. Dows down about 20 points. The jobs report is out. April nonfarm payrolls increase by 288,000 jobs. Were you able to nail the number . If so, youll be taking home the cnbc duffel bag signed by the entire squawk on the street gang. Find out if youre the lucky winner later. Honestly, im pouring everything i have into this place. Thats why i got a new windows 2 in 1. It has exactly what i need for half of what i thought id pay. And i dont need to be online for it to work. It runs office, so i can do schedules and budgets and even menu changes. But its fun, too with touch, and tons of great apps for stuff like music, cause a good playlist is good for business. I need the bosss signature for this. Im the boss. Honestly i wanna see you be brave [ banker ] sydney needed some Financial Guidance so she could take her dream to the next level. So we talked about her options. Her valuable assets were staying. And selling her car wouldnt fly. We helped sydney manage her debt and prioritize her goals, so she could really turn up the volume on her dreams today. And tomorrow. So lets see what we can do about that. Remodel. Motorcycle. [ female announcer ] some questions take more than a bank. They take a banker. Make a my financial priorities appointment today. Because when people talk, great things happen. Make a my financial priorities appointment today. At your ford dealer think . They think about tires. And what theyve been through lately. Polar vortexes, road construction, and gaping potholes. So with all that behind you, you might want to make sure youre safe and in control. Ford technicians are ready to find the right tires for your vehicle. Get up to 120 in mailin rebates on four select tires when you use the Ford Service Credit card at the big tire event. See what the ford experts think about your tires. At your ford dealer. Welcome back. Blue apron wants to change the way americans cook for themselves starting with the groceries. The startup sends ingredients and recipes to subscribers on a weekly basis and raised 50 million in venture funding bringing the total funding to 58 million. Valuation estimated at roughly half a billion dollars. Matt, congratulations on the funding round. Thank you for having me. You have seen explosive growth since the last time we spoke to you here. You were delivering 100,000 meals a month then. 600,000 meals month now. How did you have to get your Infrastructure Ready to actually service that many people . Yeah. I mean, it is an amazing time at the company and obviously grown a lot and logistics is most difficult as a company and required us to hire quite a number of people, work on the supply chain and build the fulfillment infrastructure that we operate. When you think about this product, its basically a box that arrives once a week. You get three meals for two people depending on the package and you guys only give you give the customer enough ingredients to get it made and on the table. Yep. We give you everything exactly what you need. How do you pick the recipes . We have a team of people that every day they have the best jobs in the entire company. They work in the test kitchen and Just Creative culinary folks who invent new recipes and test them and photo shoot them. For every day people. I have been a frequent customer here in the new york area. Great. I have made stuffed peppers stuffed with beef and a word i cant pronounce because its too fancy. There you go. Right there. I guess the invitation was lost in the mail . Phone was busy . Best time. I wanted to make sure that i could do it first. This is a steak salad with chick peas and chicory and things you would never think of yourself. Those look great, by the way. I chose two selects from a big portfolio. We try to do recipes that people want to cook at home and couldnt normally do. The mission is to make it accessible for everybody and introduce people to new ingredients, new techniques and recipes they have never worked with before. What do you think is making this work . We see papa mauer if is some assembly required. With blue apron, some assembly required. What is making the customer want to get involved and will it continue . Yeah. I think a number of things. Interest in food is greater than its before been in our country. People like stepping back little bit from the busy, you know, daytoday and doing something with their hands, fun in the kitchen. We trike to celebrate the fact that cooking is fun. For most people it is not able to execute on the great recipes and something theyre proud of and accomplished at the end of the day. Kraft said they have to start raising prices to keep up with cheese, bread. Yeah. Commodity costs gone bah in thats. How tied are you to the future of grains next six months . Food costs impact the margins and same time we have a really flexible model. The beauty of the model is we curate recipes to customers and we have an infrastructure where every single week we change the recipes 100 . And so every week were working with different ingredients and the purchasing team who are experts at navigating the food market pick different ingredients and work with the team to make sure we get people whats fresh, abundant and seasonal that particular week. You are in 85 of the country. Youre talking about the distribution costs that come with actually delivering that. You have 50 million in new funding. How long will that last you . We think for quite a while. Were fortunate because were not like other companies that need to have our own delivery infrastructure. So were much more capital efficient than the typical and historical online grocers of the past havent done as well as we have done. Next time having you back, matt, well live prepare a meal. Fantastic. Matt of blue apron. You. You have the experience. Okay, all right. Now i can. The heating element sometime. Matt, thank you for joining us. Thank you for having me. Lets get over for a market flash. Gold is an interesting story here. I want in on the action if she is cooking post 9. The catalyst, the increasing tensions of ukraine, russia calling for emergency u. N. Security Council Meeting after prorussian forces shot down two cr ukrainian helicopters. The gdl up about 1 , as well, carl. Back over to you guys. Thanks so much. When we come back, if steve jobs were alive today, should he be in jail . Thats the headline of the jim stewart column this weekend in the New York Times. Stewarts here to talk about what hes written in a moment. But first, Rick Santelli watching the jobs number and other things today, rick. Yeah. Ill tell you what. Just getting arms around the jobs number and objective way to try to get on the same page as the market is a real job. But i will leave you with this. Geopolitics is the new weather. What do i mean by that . You have to join me at the bottom of the hour. European markets closing a moment ago. Lets bring in simon hobbs. If you took a weighted average of europe down half of 1 . Manufacturing data good today. The eurozone growing at the fastest pace in manufacturing for three months but the Unemployment Rate at 11. 8 and people talk about it being above 10 for years to come. The m an activity is still fully on. Bayern to buy from merck. We know that. Pfizer, 50 pounds a share. Just above 48 pounds as you can see. Deutsche banc might go to 55. What a ride now in just one year. The big standouts in terms of the action today on the price action, royal bank of scotland, owned by the taxpayer of uk tripled the profits because the provisioning come right down for bad loans. The other one thats a standout is intercontinental, hotels, returning 750 million to shareholders. The lodging results this season are great. You see it with hyatt and host on the show earlier. They have the best revenue per available room growth in seven quarters. Listen to the ceo. I think, yeah, there are costs pressures, obviously, on wages and utilities and so on but more people staying and rate, you know, we have grown the top line ahead of that. As have our hotel owners and that confidence plus some of the disposals we have made and led us to announce a special dividend this morning. Of course, the disposal of, of course, hopkins in San Francisco or the barclay here in new york returning that funding. Now the other big thing happening this week is treasuries rally. The yields come down. Exactly the same thing in europe. Actually on the italian today, we actually hit an alltime low on the tenyear yield in italy as people debate, of course, whether the European Central bank will embark on qe and effectively be forced to buy the bonds. Spain has also seen its yields move lower today. The yields on the spanish tenyear now below 3 . Guys, have a great weekend. Back to you. Thank you so much. This next story, the headline, if steve jobs were alive should he be in jail . Comes from the latest column going online today from jim stewart of the New York Times. He joins us here to talk about that column. Great to see you as always. Nice to see you. Good morning. You want to take this on . Provocative idea but it really grew out of the fact that i dont know if people realize that the antipoaching agreement settled last week in silicone valley is not an isolated incident. Steve jobs at the center of that. Not the first time he had the brush with the law postmortem. There was the back dating scandal and a pattern here that looked troubling to some people. You quote some people that call him a walking antitrust violation. Do you think thats fair . That may be overstating it a bit. I have to say he doesnt seem to pay much attention to the antitrust laws and worth reminding people that the sherman act just boldly says in the first sentence that any agreement in restraint of trade is a felony punishable by three years in jail and i dont think steve jobs is the only person who seems to be conveniently forgetting that the law is on the books. I talk to people in silicone valley and say, who cares about that . Seems like each one of the cases of steve jobs there are other parties on the other side also involved. Oh yeah. Unlike microsoft which managed to get into antitrust issues all on its own. Right . Yeah, well sigh this a jobs thing or something about the way people these titans are doing Business Today . You cant have a conspiracy with only one person and price fixing cases. Microsoft was an monopolization case. Apple never really got that kind of market dominance to be a monopolist. Google, maybe another story. But that was a microsoft case. These are oldfashioned conspiracies. And those are the worst violations under the antitrust laws. I remember the back dating, the options story and we all wondered at the time, is steve jobs in trouble . Justice looked at it and later said, thank you, apple, for cooperating as well as you did. Theres wrinkles in the back dating case. It was an accounting and disclosure issue and said steve jobs doesnt understand accounting. Is that a defense . Other people indicted who could have said the same thing. He was already suffering from pancreatic cancer and leading one of the most important and popular and Innovative Companies in the world. The lynchpin is always intent. Do you believe that steve jobs thought ignorance is bliss and as long as he didnt know it was okay . Now we are getting into the mind of steve jobs, psychology, and somebody once told me can you tell a lie if you think its true and wrong . He did have what is described as a reality distortion field. Did he know he was breaking the law . You have to wonder. He puts it all in emails. You would think. If he thought he was breaking the law he would be more cunning. Famously drove around in a car with no license plate. Theres pattern there of sort of thinking im above the law, law doesnt apply to me and part of the brilliance and remains a on the letter of the law, he was certainly skating awfully close to the edge. Theres a recklessness there. You have to wonder when would he have finally gone over the line . Getting into his head, you delve into the aspect of so obsessed with competition, right . References to nuclear war coming to google and might have enjoyed some of this skating the line a little bit. Probably. I think there is probably some thrill about that. And it is kind of a paradox that hes so lauded competition and reveled in it but many monopolists, price fixers, similar attitudes and its their zeal to get the other guys that pushes them a couple of steps too far. And pushed off the road early on by powerful interests in silicone valley and beyond and skated close and maybe the experience taught him how to skate. Apple will say on ebooks, we brought more competition to that space than was there previously. Thats what theyre saying. Thats not worked in court. You didnt make a price fixing agreement and say it benefits people. It is per se illegal. Congress could change the law but thats the law. Talking about jobs posthumously, though. Yes. A lot of Company Executives are still here and operating and involved in the poaching agreement. Ebay and intuit paid to settle that case and a wimpy fine and didnt go after the executives by name at the other companies so do you think this is a government issue or a Company Issue . I think it is. They dont explain why they decide not to bring charges but on the face of it the poaching, it is not novel. It is a blatant per se violation of the antitrust laws but lets face it. Realist realistically, they want to haul off all of these leaders of the Technology Industry at this point in the economy . It probably doesnt make any sense. But again, i think they do need to send a powerful message. Remind people that, you know, we are not going to tolerate this. This is a crime. Doesnt benefit consumers and has to stop. Well see. If you work for holder, would you argue he should take this case . I would at least be rattling the sabers a little more than they have so far. I think you are doing that from where you are right now, though. Thank you for coming in. Sure. My pleasure. The u. S. Economy added 288,000 jobs in the month of april so did you nail that number . The jobs report is out. April nonfarm payrolls increased by 288,000 jobs. Were you able to nail the number . If so, youll be taking home this cnbc duffel bag. Signed by the entire squawk on the street gang. Find out if youre the lucky winner later. Those Little Things still get you. Cialis tadalafil for daily use helps you be Ready Anytime the moment is right. Cialis is also the only daily ed tablet approved to treat symptoms of bph, like needing to go frequently. Tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. Side effects may include headache, upset stomach, delayed backache or muscle ache. To avoid 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 allergic reactions like rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. Ask your doctor about cialis for daily use and a free 30tablet trial. E financial noise financial noise financial noise financial noise make it happen with fidelity active trader pro. Its one more innovative reason serious investors are choosing fidelity. Call or click to open your fidelity account today. Next, big worries. A red flag on the markets. Fast stock. Churchill downs isnt just the site of the kentucky derby, it is a publicly traded company. Should you bet on it in your portfolio . We have the ceo. Breaking down chinas wall. Why an Analyst Thinks linkedin will survive where others didnt. Rick santelli has a Weekend Edition of the santelli exchange. Absolutely. Thank you so much. But before i get talking, i think its important on a day where we had a big april employment report to hear from the labor secretary mr. Perez. Only a few seconds. Lets run the tape. You look at participation ratd rates over the last few months bounce around but theyve been basically flat. Listen. That isnt an inaccurate statement but it really doesnt represent the true landscape of just how structurally weak this metric is. Now, look at the following chart. Hes absolutely correct. Theres been several months where we have equaled the current rate of 62. 8. When was the last time we were lower . It was early 1978 as you can see on the chart. See, the problem is that we had good news over several months with jumps in the labor force Participation Rate. More inclusive labor force Participation Rate and all given back today. Over 800,000 people on a month over month basis said goodbye and the residual number of 92 million that are considered employable and not part of the labor force, thats a record level and that to me is one of the main things that markets have to grapple with. We all know its going on. We have a pie. We need to grow the pie and not growing the pie and slicing it in smaller and smaller pieces. Then you add in, well, lets let the markets speak for themselves. Lets look at an intraday of tenyear note yields. Briefly touched 257, 258 area. That is the closing yield on february 3rd. Lowest yield and i have used it in all the metrics for all the retracements. We have seen the santelli exchanges for 2014 with that. Open the chart up and clearly see that february 3rd. Why is it so important . We had jim bianco on today and expressed what many have. For 2014, most analysts, most economists, most large trade earls in the fixed income market, Hedge Fund Managers thought that Interest Rates have to go up. A couple of things they didnt discuss and also look at some of the overseas markets and what their rates are, much weaker economies but geopolitics is the new weather. Weather had an impact but not the impact many would have you believe. I have seen the faulkland islands and kuwait and the gulf wars and all on my years back to 1979 and going on in ukraine, not saying its not important but its going to be used as an excuse also because the markets interpretation of the data doesnt match what many economists want it to be. Back to you. Good point, rick. We have to keep in mind just how ukraine is used by some as a tool for the thesis. Rick santelli in chicago, well come back to you later on. We have breaking news, the president any moment now and german chancellor Angela Merkel to make a statement. John, it is not happening in a vacuum. Russias call for a u. N. Security Council Meeting and word that unrest is moving to odessa, the Third Largest city there. Reporter yeah. Events are in the moving in a good direction in the Eastern Ukraine and i think the president and the chancellor are going to address those and see how best they can maintain a united front and deep disagreements on the pace and depth of sanctions advisable at this point. Youve also got the favorable jobs report i would expect the president to talk about that but not to disagree entirely with what we heard from Rick Santelli and the pace of growth is still not fast enough and unemployment is not down enough for the satisfaction of anybody and id expect the president to address all of that in the fairly brief News Conference that well have after two of them make opening statements. When that happens, john, well come right back to you. John harwood in the rose garden on this friday morning. When we come back, president obamas News Conference. Dows down 24. S at your ford dealer think . They think about tires. And what theyve been through lately. Polar vortexes, road construction, and gaping potholes. So with all that behind you, you might want to make sure youre safe and in control. Ford technicians are ready to find the right tires for your vehicle. Get up to 120 in mailin rebates on four select tires when you use the Ford Service Credit card at the big tire event. See what the ford experts think about your tires. At your ford dealer. Beautiful day in baltimore where most people probably know that geico could save them money on car insurance, right . You see the thing is geico, well, could help them save on boat insurance too. Hey okay. Im ready to come in now. Hello . Im trying my best. Seriously, im. Im serious. Request to come ashore. Geico. Saving people money on more than just car insurance. What is this place . Where are we . This is where we bring together reliably fast internet and the best in entertainment. We call it the x1 entertainment operating system. It looks like the future we must have encountered a temporal vortex. Further analytics are necessary. Beam us up. Thats my phone. Hey. [ female announcer ] the x1 entertainment operating system. Only from xfinity. Tv and internet together like never before. Only from xfinity. Female announcer sleep trains interest free ends sunday. Its your last chance to get three years interestfree financing on beautyrest black, stearns foster, serta icomfort; even tempurpedic. Plus, get free delivery, and sleep trains 100day low price guarantee. But hurry sleep trains interest free for 3 event, ends sunday. Sleep train your ticket to a better nights sleep we have a winner in the nail the number contest. A guess of 288,000 right on the number. Joining us this morning, bill is this months nail the number winner on the money. And has been trying to win it for a couple of years, right, bill . Yeah. Thats correct. Ever since the start im trying. I never been that close so this is kind of amazing to me. Its usually amazing when anyone can guess a number this volatile. I guess you were looking for a snapback after a brutal winter, right . Yeah, exactly. I travel a lot and witnessed all that weather firsthand and i knew there had to be a negative effect and just playing a snapback in the spring and the thaw came and picked a number large on the estimates and just happened to hit it. Bobs your uncle. Youre investing your own money for 30 years. You are interested especially in the automakers, thinking some of the weakness is temporary. Yeah. And you got exactly and i was in the position more a while and lately with the stuff going on with recalls and earnings misses, it was a good chance to kind of add to positions and also been doing the same thing with the financials for the same reasons. I think the problems are temporary and eventually theyll work themselves out. Bill, congratulations. Enjoy theenjoy the duffel bag. Keep playing. Weve had repeat winners. Thank you very much. Our name the number winner for this metropolitan for april, right on the money. The markets have turned negative. Art cashing is here at post 9 to talk about whats been an interesting morning from both an earnings standpoint and now we have geopolitics in the mix. That was the big surprise here. Markets were cruising along, and about 10 30, 10 40 the russians called for an emergency meeting of the u. N. Security council, and cynical traders got very nervous. They thought that could be an easy cover for a possible invasion. The thinking was that, look, we turn to you, the u. N. , there are people in trouble, can you get something done . Oh, wait a minute, you dont seem to be able to get anything done . Perhaps well have to go in and do it ourselves. Its cynical, i know, but thats the way traders think. You saw gold spike. You saw the tenyear reverse sharply, the yield coming down and then you saw stocks. Theyve calmed down a bit. Theyre waiting to hear what the president and merkel have to say and that kind of response. In the back drop theres a fear you could see action. I know youve been watching the tenyear like a hawk. What do you think we should be looking for levelswise on the yield there, as we hear from the president and the german chancellor . I think its interesting that you saw a heavy reaction to the payroll number. I think theres very deep investment in foreign players, people scrambling for yield. Rick has spoken about this, and i think hes spot on probably 70 of the players today or the last couple days may be from offshore. When they saw the payroll numbers, they didnt know how read them. The yield spiked back up. I would be careful to watch if it gets below 2. 50, because that would that would be a move. It would be a move, but if the geopolitical concernser very heavy, dont forget this would be a flight to safety kind of routine. Finally santellis other point is ukraine might be used fors as an execution for those who dont want to admit the number was hollow, an the bond market saw it that way. I think rick has a pretty good handle on those things. Here on the new york size, youre going to see people not connect the two events. Theyre cynical enough to believe that somebody can call for a peace well see what happens. It will be an interesting few hou hours. Were still awaiting the News Conference between the president and german chancellor. Well take you there as soon as they start speaking. For now, well be right back. E ] the Wright Brothers started in a garage. Mattel started in a garage. Disney started in a garage. Amazon started in a garage. The ramones started in a garage. My point . Some of the most innovative things in the world come out of american garages. Introducing the lighter, faster cadillac cts. 2014 motor trend car of the year. Aint garages great . For 175 dollars a month . So our business can be on at ts network yup. All five of you for 175. Our clients need a lot of attention. Theres unlimited talk and text. Were working deals all day. You get 10 gigabytes of data to share. What about expansion potential . Add a line anytime for 15 bucks a month. Low dues. Great terms. Lets close. New at t mobile share value plans. Our best value plans ever for business. Its called truecar. And truecar users. Save time and money. So when youre. Ready to buy a car, make sure you. Never overpay. Visit truecar. Com today. Because you cant beat zero heartburn. Woo hoo [ male announcer ] prilosec otc is the number one doctor recommended frequent heartburn medicine for 8 straight years. One pill each morning. 24 hours. Zero heartburn. Frequent heartburn medicine for 8 straight years. In a we believe outshining the competition tomorrow requires challenging your Business Inside and out today. At cognizant, we help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. We take you to the rose garden in washington, d. C. At the white house, where the president will hold a News Conference shortly with german chancellor Angela Merkel, to talk about the future of russians sanctions, and a lot more. Our john harwood is there. Were likely, i assume, to get a sense of whether or not germany and the u. S. See eye to eye on sanctions. We know german,is chris critical to whatever the eu will do. Reporter absolutely. The administration has been trying to pull along the european allies. The sanctions they imposed this week intended to impose last week, but did so on monday. Were closer to the point at this the broader, more serious, more dangerous for european and american businesses sectoral sanctioning get called for. It is pretty clear, despite this call for russias call for this emergency meeting, that they havent had much interest in diplomacy so far. They discarded the agreement with lavrov and kerry almost as soon as it was struck a couple weeks ago. So i think this is the situation is getting more grave and more worrisome. I think that may be why merkel and obama have not come out yet. So far theres been some abstinence involving the oil industry. Brent crude, in the futures market, im wondering if you think we are nearing the point where we will see oil come into play here . Reporter well, thats what the money portion of sectoral sanctions are, on energy, which is the lifeblood of the russian economy, which has been struggling. If they really want to administration a blow a lot more effective than has been administered so far, thats where theyre going to go. The problem is that, by making the russian economy worse off, of necessity were going to make european and the American Economy somewhat worse off. The question is, do leaders have the stomach to take that step . Clearly the imf basically cutting their forecasts for growth in russia to basically flat. We know what an elephant in the room they are when it comes to oil exports. Even though we talk about our own energy boom here in the states, still pretty reliant on the russian giant. Reporter no question. Part of the policy prescription you get from some experts is that now is the time to take steps to over a longer period of time allow the u. S. Energy policy to accommodate or give room for not needing so much from russia. That involves natural gas, and steps you can take to enhance american exports, but well have to see Keystone Pipeline is one thats discussed as well. Theres a lot of debate over what effect that would have, whether it would make a difference, but all of these things thing are getting squarely in the table, because theyre unavoidable. Between the nsa controversy, the jobs number today, so many cross winds that will converge when that News Conference begins. John, well talk to you very soon. John harwood in the rose garden. When that begins, well get back to them. Markets have definitely been erasing some of the early gains. Well see how the week ends. Weve had this marine of up down, up down, up down for the last few weeks. We are seeing the russell 2000 lead the market, that up half of 1 , even as the Broader Market is in a mode of declining. Interesting to see that move. We have a lot of sector moves, tech weighing heavily, and all those other names coming out yesterday. As we await this News Conference, traders essentially taking some trades back to even, because so much is unknown about what theyll say. Speaking of which, lets get to melissa lee, who will walk us through the halftime today. Hey, its not just taking you back to evening, but look at the bond market. The action of the tlt is extremely telling, as we are awaiting president obama and chancellor merkel from the white house. Meantime, im melissa lee, in for scott wapner. Joined be stephanie, jon, pete, mike and mike. Lets talk about whats going on in light of the stephanie, do you think its the jobs report . I think its the ukraine for sure. You saw the market then totally roll over when the headlines came out. As soon as he got the jobs