Lets get back to our roadmap back here in the states. It starts with jobs. Employers adding 209,000 jobs in july, below forecast but showing strength in the labor market and the economy. The white houses reaction to that when were joined by the chairman of the council of economic advisers. And big earnings this morning. Tesla, gopro, Procter Gamble, chevron. And breaking news, auto sales trickling out all day long. Phil lebeau has the details. Ford up slightly. 9. 6 . Were going to get a lot of numbers here in the next hour. What we want to see at the end of the day is the ultimate sales pace for the month of july. Most estimate it will come in about 16. 7 million or 16. 8 million. Ford up 9. 6 in the month of july. Back to you. Thank you very much, phil lebeau. Back to that jobs number, the economy adding 209,000 jobs in july, the employment rate tibckd up to 6. 2 . We are also coming off of a bad day on the broader equity markets, also some concern about flows out of highyield funds although it seems to be on the shorter duration paper. A lot of reasons for yesterday, we could go through many of them the list was long. People speculated, its russia, gaza, argentina portugal or the prospect of higher rates. We are confronted today with a number many would say is not too hot, not too cold like mark zandi said. So much of a faster fed. That was really the debate yesterday. The fed was doing to come in and raise Interest Rates faster than most people, including the markets were willing to accept. Now you have to wonder whether all of that conversation is going to be reversed today because of the Market Reaction off that jobs number. Its somewhat stunning. Bad news is good, good news is bad. Back to that debate, i guess. What do you expect after zero Interest Rates since 2008. Its a whole different story. Janet yellen and the fed this week said theres slack in the labor market. Perhaps this number proves what shes seeing is there and it hasnt been Strong Enough to get them to change policy. We didnt see any change in wage growth. The fed is looking at that very carefully. No change in longterm unemployed. Not surprising. The thought of higher Interest Rates are just unacceptable for certain people in the market who just expect things to keep going up on autopilot where maybe its going to grow a little bit more difficult to find value in the market. Maybe its not such just set the thing, sit back, set it and forget it and watch the stock market go up. Are slightly higher rates really that much of a problem if the economy is improving . Perhaps not, at least for the markets. But that remains the big question, doesnt it, scott . And jim cramer, if he were sitting here would say, no, its a good sign. It shouldnt be lets talk to a team of experts here. Joe lavorgna and brian belsey. Joe, you are sort of the poster child for this a little disappointing. 209,000 is a little disappointing. But six months in a row over 200,000. Claims making new lows. The economy is in good shape. Youre right, the market now is going to kind of take out the timing of the fed moving sooner. But we get a stronger employment report next month. Then it changes again. You said the feds offside, you agree with fisher, it should be raising rates faster than yeah. The Monetary Policy is miscalibrated. Theyve taken the responsibility away from the fiscal sector by keeping rates low. You cant get structurally Unemployed People back into the workforce by putting policy low. Im a minority voice. Richard fisher is a minority fisher. If inflation continues to rise, even yellen will be forced to do something. Why not take the numbers for what it is . They does it have to be about what the fed is going to do next . It doesnt have to be. You hit the nail on the head in the prior segment when you talked about going forward. The trains left the station when it comes to u. S. Economic growth and job growth. We have to worry about six and 12 months down the line. Not today, not tomorrow, not the next employment report. All of this backandforth just tells us that we remain in a reactionary market. Mr. Wapner said it best when he said stocks dont always go higher. We need a bit of a respite here. Remember the formula for investing. Stocks lead earnings which lead the economy. Now the economy issic pg up. Stocks are very gone up. So any kind of respite in the stock market would be perfectly normal and, oh, by the way, very, very healthy. It does not dissuade us from our bullish longerterm view. We just need a respite belski must want something. This correction, by the way, is setting up perfect, right . So we have a surprise selloff on thursday. Were heading into a Holiday Weekend in many markets on monday, on a friday. Things are beginning to sell off. This is perfect. Remember, in september we have a heavy conference season. Got a big deal flow coming in wall street. We anticipate any kind of correction will be short term. The bull market is very much alive. Brian said it perfectly. Joe, should i be worried about this outflow from high yield . At some point when the market sells off, yes. The problem is dealer Balance Sheets have shrunk dramatically because of the regulatory hurdles. If rates were to back up violently which i have argued will happen, it may happen where investors have to sell the liquid assets, treasuries, to fund the outflows of investors from credit, emerging markets and these other assets. Your view is at some point we do get a rather chaotic market response to higher yield . Go back and look at what the fed was saying many may of 04. Theres stack in the markets, pages contained, they hike six weeks later. The twoyear note at the time it was a record low. Almost doubled within two months. So, brian, Peter Boockvar said there could be the start of the correction and the end of the bull market if this tightening begins and goes on for longer than people expect. You disagree with that . Yeah. This is a 20year bull market. Between 1982 and 2000, we had some shaky times. 1994 was one of them. 87 was one of them. July 96, we had the kind of pullback thats beginning to take place right now. Stocks dont go up forever in one direction. The market, if you think about where assets needs to go and have to go on a fundamental basis, its developed marks and especially whats going on in america in terms of corporate fundamentals. As you start to see weakness in the high yield and the fixed income markets, the assets will eventually flow back into developed markets. Its only begun and the u. S. Is the bestpositioned asset in the world to take those assets. I bet a lot of folks would hope you were right after that plunge in the dow yesterday. Thank you both, gentlemen. Its funny, i was going to go for the pink pants this morning, joe, but i chose not to. And im glad. Only some people can pull it off. I dare you to wear pink pants. Lets talk about a story yesterday that emerged during the course of the day and had a Significant Impact on two names certainly that we focus on here, namely tmobile. John ledger, the ceo of tmobile, was here yesterday and as well as sprint. Surprise bid from a bench company. Some people call it the tmobile of france, others refer to it as the metro pcs of france. Its run by a multibillionaire. The bid itself not for all of tmobile. For 56 , they would be buying it via what would have to be a structured partial tinder offer in which Deutsche Telekom would sell some of its shares. But it was almost a no premium deal from a company far smaller than tmobile that would need to lever up extensively. And it wasnt clear that they have the fascinating, and is claiming 10 billion in synergies even though they have absolutely no operations here in the united states. I would call these aspirational synergies, as opposed to real potential synergies. All of which leads me to tell you at this point the deal while received only a week ago has been stuck in the outgoing pile at Deutsche Telekom at this point. The idea that there are other opportunities, something that john ledger yesterday alluded to during our interview. Weve always said in the long term scale is extremely important. But i point out that we have multiple options to create longterm scale for this company, one of which has been long rumored and is one possibility for the business. One possibility of any number. Deutsche telekom, their best performing asset is whats going on with tmobile in the united states. Theyre not going to be that quick to dispose of it. The key is on the regulatory front. If they were ever to do that deal, highly, highly unlikely, it wouldnt face any trust problems. The question i have for you, if nothing else, does it force sprints hand perhaps and softbank to act more quickly . I think it does in a sense. Not that they havent been focused on getting this done. For six months, you were dealing with a regulatory impediments potentially and they were trying to smooth the runway in washington, perhaps not successfully. Youve been dealing with valuation only the last to months. But they have to get there. The more time you go without a deal, you raise the questions, maybe someone is out there to do a deal. You alluded to the xavier gentleman of gilead multibillionaire, the steve jobs of france, who i was not familiar with. When was the last time we talked about iliad . I know. Coming up, jason if you rememberen jason furman is going to join us. But first, Procter Gamble bouncing back after a few rough months. But some are still disappointed with the companys performance. All of those details on that story. Lets take another look at the futures which have been all over the place this morning. There you go. Dow jones with an implied open of down 25 following that jobs report. More squawk on the street live from post 9 at the New York Stock Exchange when we come back. But what if you could see more of what you wanted to know . With fidelitys new active trader pro investing platform, the information thats important to you is all in one place, so finding more insight is easier. Its your idea powered by active trader pro. Another way fidelity gives you a more powerful investing experience. Call our specialists today to get up and running. Procter gamble reporting fourthquarter profit of 95 cents a share. That handily Beat Estimates by four cents. But revenue did come up short. The Consumer Products giant saying its organic sales up 2 from a year earlier and its results were helped by cost cuts. I wrote a long piece for cnbc. Com called whats wrong in cincinna cincinnati. Pangea has had problems, Third Quarter in a row where sales have missed, cost have beat. Sales growth remains elusive and theyre struggling on all quarters. Lafley has now returned. Investigators want more. This has been a solid underperformer on the year. The stocks down 5 . Year to date the commentary on the street, they werent expecting much. Slightly better than feared is a headline from one of the firms this morning. Thats putting out a note. They note the Revenue Growth that you mentioned remains week. And its two stories here. One, the category in itself is weak. Kimberly clark, colgate, unilever over in europe, and even loreal, citing weakness in the american market. They have not seen the recovery that weve seen in other pockets of the economy. You have problems with p g. A lot of noyanalysts say they n to get working on their strategies lafley didnt take that job ackman took a position in the stock. There was a lot of handwringing about the lack of Strategic Vision at the company. Have things changed significantly . What about a ceo for the long term . He was brought in to turn around sales and bring in a new successor. So far, hes done neither. This was the first time he spoke on the call since coming back. Hes not there for the long haul. P g has a long history of taking from within, in terms of picking the successor. But no hints on that yet. But beauty is going to be one thats going to be a challenge. When you were talking about the litany of other companies in the Consumer Staples space, its sputtered over the last month, quarter, however most recent metric you want to put on it. It has been a problem. 3. 3 yesterday may help it out. Up next, the one and only art cashin joins us to help us kick off this jobs friday and what it means for the trading day ahead. Futures, one day removed from that significant drop in the broader averages. We are poised for a modest, modestly lower open. More squawk on the street from the nyse coming right up. [ girl ] my mom, she makes underwater fans that are powered by the moon. She can print amazing things, right from her computer. [ whirring ] [ train whistle blows ] she makes trains that are friends with trees. My mom works at ge. They are getting ready for the friday trade down here on the floor of the New York Stock Exchange. Lets take a look at futures now, how were setting up after the worst day for stocks since february. Just an ugly day yesterday. And after the jobs number, you did have the futures come off the worst levels. The Dow Jones Futures looked an implied open down 39. The s p which was down 40 almost yesterday looks like its going to be down another 4. 5 if things stay the way they are right now at the open. Lets bring in art cashin, director of floor operations with ubs. Nice to see you. Morning. How should we read the jobs number and what it means for how the markets going to trade . Now were back to this conversation that bad news is good news . Well, theres a little bit of that. And you had a mild bout of euphoria because the jobs number was as everyone said a goldilocks number. But the futures are beginning to weigh down here. Thats the european influence, i think. Which was around yesterday. Portugal in particular, some internal technicals, david and sara and i discussed yesterday morning the importance of the 1950 level and that we would get the heavier selling if we broke it. We did. And technically that count probably could take you down to 1920 or maybe even a little bit below that. Doesnt have to happen all in one day. So youve got negative pressures. Youve got some influences from europe. And again yesterday, people tried to lay it at the feet of a variety of things. But if you looked at the overall picture, it was clearly a financial influence, not a geopolitical gold was down heavily and oil was down nearly 2. So it was mostly financial. Mostly portugal and internal problems here. We have been talking a lot about the russell. The russell dropped for than 6 during the month of july. Thinking about higher Interest Rates, those are the stocks to stay away from. Clearly. And they has been the leaders on the upside. So it started with some early profit taking. Now its people trying to get a little protection for themselves. So if they roll over again, it will be the russell and the nasdaq will be down. A lot been made of this move yield, move out of highyield if you dont understand. Theres this inner linkage with programmatic trading it resparked the idea that there maybe some contagion within the european banking system. You saw that germany, for example, was down the dow equivalent of 350 points. So they were all in line. Portugal, by the way, was down the dow equivalent of about 580 points. So that was clearly at center stage of some of the concerns. Bad across the board. And argentina lost 8 , given that default. Thats what were calling it. I think that was more influential and emotional than anything else. Friday has an upward bias, first day of the month has an upward bias. That can get negated by the negative influence of the technicals. Art, thank you. Have a good weekend. Opening bell is coming up on this jobs friday. Stay with us. Squawk on the street is coming right back. All set . Yyyup. With xfinity internet your family can use all their devices at once. Works anywhere in the house. Even in the garage. Max whats going on . Were doing a tech startup. 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The ibm cloud is the cloud for business. The ca illac summer collection is here. During the cadillac summers best event, lease this 2014 ats for around 299 a month and make this the summer of style. [b ll rings] time and sales data. Splitsecond stats. Its so close to the options floor, youll bust your brainbox. All on thinkorswim, from td ameritrade. Youre watching cnbc, squawk on the street. Were live from the Financial Capital of the world. The opening bell is going to ring in one minute. I thought we were a little early with the jobs number. Eamon went a little bit earlier. I dont know. I dont want to cause a controversy. We were first. There you go. That job number is whats going to drive action. 209,000 jobs added during the month. Economists looking for 230,000. But it was above 200,000, sixth month in a row weve done that. Well see what the action is right off the open. Yesterday was a unique day not only because there were so many things being cited. But the breadth was really bad, vix shot up, volume higher than normal. All 30 down numbers. We are awaiting the opening bell here. The realtime exchange, yesterday, almost all red for the s p 500. Well see what today brings. You hear a big cheer going up here. At the big board, we have an ipo, mobileye. Over at the nasdaq, the