♪ good morning. welcome to "squawk box" here on cnbc. we are live from the nasdaq market site in times square. it's friday. i'm becky quick along with joe kernen and andrew ross sorkin. yesterday, you saw the dow up by a little bit. t the nasdaq and s&p were down and set new intraday highs. the dow off 20. the s&p down fractionally. the nasdaq up 15. if you look at treasury yields, which have come under pressure in the last few weeks, you are looking at the 10-year at 4.29. the two-year at 4.74. andrew. big story here.

gamestop shares jumping more than 47% yesterday and they're up again in the pre-market today. up 32%. all this coming after keith gill posted a live stream on youtube. the first in four years beginning in august of 2020. he hosted hours long shows which helped spark the meme craze in 2021. gill posted screen shots that appeared to be his portfolio, and including very large holdings in gamestop. if the stock returns to $64.83 a share, gill's position would be worth more than $1 billion on paper. there is part of me that wonders where he got all the money to do this. a lot of it, obviously, is in the options. he doesn't have to own it completely. i didn't know he had this kind of money. >> now it's a lot. >> no, no, some of the initial

inve investment. >> probably tens of millions. you just said the "b" word. >> a lot of people are looking at this hard because of the speculation of the s.e.c. looking at this and why is this different? is somebody behind him? has somebody staked him and is there a group working together? i don't understand it at this point. i have become much more skeptical in the last 24 hours. >> i look at the dude, the bro, man. we complain when founders aren't involved when they are involved in $1 billion. he could be a billionaire. >> from investing. he and bill ackman. carl icahn.

>> you figured out a way to do this. gamestop is the vehicle, but no one thinks gamestop fortunes have changed. >> of course not. >> they have gotten worse. >> that is why we have the question how this is happening. how is this happening? >> wall street bets pointed out roaring kitty added a disclaimer to the live stream. >> he now has enough money to have a lawyer. >> this is for entertainment purposes. you shouldn't be taking investment advice from this. positions can change quickly. past performance is no indication of future earnings. >> he got a lawyer finally. >> i don't think that's the question of how is this happening. it's already happened. it is. it's there. it's done. >> it doesn't explain all the other people that have to be doing it.

he can't be moving the market himself. >> he has a following. >> say something controversial about him or what he is doing and see if he has many followers and i'll give him your twitter account. >> come at me. @arsorkin. >> look at this. 1.4 million twitter. 794,000 youtube subscribers and 1.1 million views on youtube. people are interested in hearing what he has to say about this next. >> i wouldn't even say not even as a joke to go ahead and comment. i wouldn't do that to anybody. my worst enemy. i'm not going to, right? >> @arsorkin. >> you haven't said anything. you have to say something like this has got to be stopped.

say something that will energize his base. it doesn't take much. you could say something about the apes. a lot of ways to do it. you're hu you're hesitating. >> i'm thinking. >> do not do it. you are in the right most of the times. >> i'm very virtuous. >> yes. to be virtuous, you have to try to be virtuous. >> you can just be. >> or just oozes from every pore. moody's is placing six u.s. regional banks on downgrade review. including first merchants, fnb fulton financial. there is one next to taco bell.

financial and wafd. these banks have exposure to commercial real estate loans which raises long-standing risk to the banks especially in the event of the economic downyturn which will the get -- i don't think this number today will show us the economic downturn. michelle girard will join us. this is what we're dealing with. >> jobs number at 8:30. >> as a forecaster of the jobs number, she mentions claims. an average of 1,000 a week. we have nothing to work on. >> the continuing claims falling below that again and again and again. >> there is really nothing to go on except for in the first quarter it was 265 a month. 265,000. it was 175 last time. that is a pretty significant slowdown. she will be on. the second half of the year, she

thinks will be significantly slo slower, i guess, because of the lag or conditions are tight. if you believe the ecb, maybe conditions are tight. >> the ecb is moving more from the perspective of they have the economy that needs a boost. >> inflation is not quite as bad as ours. >> it has come down. it is not in their target zone either. netflix shareholders voting for approval of the fresh executive pay plan. a year after the last proposal was rejected. the non-binding vote in favor of the ceos receiving a target pay of $40 million each. the previous compensation package would have allowed executives to choose how they allocate pay with cash and stock options. that was rejected last year with the strike by the writers s gui. this calls for a base the salary and the target bonus of $6

million. the remainder would come in the form of restricted stock awards and netflix shares below $650. >> weird. >> what? gamestop is supposed to report next week and it just rep reported. >> really? >> adjusted loss of 12 cents. that's a $32 million loss. $32.3 million. first quarter sales -- is this a fat finger or a fake i don't know? the first quarter sales of $$88 million. let's look into the release. what is 8 82 compared to last year? >> $1.2 billion in terms of the sales. >> you know, we have pointed out that things have actually gotten worse. won't you say? >> yes. things have been worse with the company. >> it goes from 15 to 65. >> yes.

>> that's what you were asking. how is this happening? >> the loss narrowed 32 million from 50 million. >> all right. that's headed in the right direction, it looks like. why post today? i don't know. i guess there might be a reason. >> loss of 11 cents down from 17 cents. i don't see an explanation of why they're reporting now. >> do you want to get it out there? why wait for next week, i guess, if the stock is running like this? is it good news or bad news? it doesn't look like it is great news. who knows? sd >> shares are up. still in positive territory, but down from where they were. >> maybe keith gill can do an i am impromptu video? now he has numbers to play with. >> to back up his fundamental

t thesis. tesla investor cathie wood weighing in on the elon musk pay package. she points out that the 2018 agreement board members considered that elon would work for no comp over five to ten years if he failed. she said he did not fail. he succeeded spectacularly and should be rewarded accordingly. it would be unconscionable to renege after the risks associated with the tesla rise. stock up 650% since the 2018 pay package was announced. >> you have emphasized over and over how you're on elon's side or the side of right. these are very aggressive numbers he had to hit. once you hit them, if you made it, you should get paid on.

>> the shareholders already voted on it. >> it is a no-brainer that it is the only position you should take. i'm wondering when you walk in that other building and people are going -- every year they do the ceo shaming for comp compensation. this is so outsized. have you felt any different? >> only when i go to lunch with ann lipton. >> if you are purely a person that wants any galatarian society, nobody wants that compensation. you know elizabeth warren would make that case. how did you come down on my side on this? >> i'm a man of the law. the law. you should know, talking about being a man of the law, there is a judge who doesn't think this is legal. >> that is a bizarre judicial

ruling. i thought it was too hefty of a p payback. >> the 250 felony counts? >> no. the delaware court. it was an approved by shareholders and the board. i thought it was a rich pay package. i thought he would never hit all of the metrics. he did. by the way, gamestop, the company will not hold a conference call today. i'm reading through the release. >> we reported it. >> i'm told they never do. >> they never do. okay. keith gill didn't miss anything. >> no. >> we will keep our eyes on all of this. we are watching shares of hertz, car rental company, is considering a sale of $750 million. it is weighed down on the big

bet of electric vehicles and customers were reluctant to rent them and had high repair costs. it is looking to sell 30,000 veh electric vehicles. you can get a good deal. hertz spokesperson is selling hertz teslas for a no-haggle price of $25,000 in most metro areas. >> that actual ly makes me want one. >> try it out. >> park it and use it when you want. coming up, countdown is on for the employment data. and later, former president trump attended a fund-raiser in san francisco. >> you haven't mentioned what today is. >> doughnut day.

>> national doughnut day. one of my favorite days of the year. >> a tough week for me. people send me taco bell, i'm not eating it. i'm doing no carbs. none. colefof a up pistachio nuts. go deeper with thinkorswim: our award-wining trading platforms. unlock support from the schwab trade desk, our team of passionate traders who live and breathe trading. and sharpen your skills with an immersive online education crafted just for traders. all so you can trade brilliantly. the future is not just going to happen. you have to make it. and if you want a successful business, all it takes is an idea, and now becomes the future. a future where you grew a dream into a reality.

it's waiting for you. mere minutes away. the future is nothing but power and it's all yours. the all new godaddy airo. get your business online in minutes with the power of ai. i can't believe you corporate types are still calling each other rock stars. you're a rock star. we're all rock stars. oooo look look at my data driven insights, i'm a rock star. great job putting finance and hr on one platform with workday. thank you! guys, can you keep it down. i'm working. you people are (guitar noises). hand over the air guitar. i've got another one.

food isn't just fuel to live. it's fuel to grow. my family relied on public assistance to help provide meals for us. these meals fueled my involvement in theater and the arts as a child, which fostered my love for acting. the feeding america network of food banks helps millions of people put food on the table. when people are fed, futures are nourished. join the movement to end hunger and together we can open endless possibilities for people to thrive. visit feedingamerica.org/actnow markets are awaiting key jobs data.

the street is looking for 190,000 jobs. let's bring in michelle girard, the ceo of natwest. michelle, i didn't say everything you were thinking. i did mention a couple of things. you are at 185. >> we're at 190. >> we're at 190. you're above the consensus? >> slightly. >> this is versus 175 last time. you point out down from what was the average in the first quarter quite a bit higher. it was in the twos. >> year to date, running 246,000 in payroll gains per month. this would be a solid number, but slower than what we've seen and slower from what we saw the second half of last year. the trend is moving in the direction the fed would like to see. it has further to go. you talked about the numbers continuing to weaken for the

remainder of the year. in general, we think the economy will slow or stagnate over the second half of 2024. >>ing m >> moving the fed's way. it's implying this means cooler inflation data. is that like night follows day? it is weird to try to cause higher unemployment. >> exactly. although, i don't think the fed is necessarily trying to force the economy into a recession, but they don't want the economy to continue to grow at such a rapid pace and above trend rate that you really can't get the inflation rate back to target. they do make the connection that a strong job market will mean stronger wage growth which will keep, you know, inflation elevated. to see employment easing back a bit and more importantly, to see the earnings numbers and wages

numbers slowing from, you know, what had been 4% plus and now we think it moved to 3.9%. to see some of the boil coming off in terms of the wage numbers will give the fed confidence that, you know, in terms of everything aligning for inflation to move back to 2%, you know, that won't be something that keeps the inflation elevated. >> i surmise from what you are expecting in the second half that you think we are in restrictive territory. you expect 160,000 in the second quarter and a sharp slowdown from that in the second half in jobs? >> yes. we do think where the monetary posture is and the fund rate over 5% that we are restrictive. we do think that that is having an impact and weighing on the economy. joe, were you talking about it is not easy to find the strong evidence of that particularly

with the labor market. some of the underlines data everybody's talking about with the number of job vacancies and openings that have come off with the modest uptick in claims. surveys have suggested hiring plans have eased as i think companies are concerned about the outlook. there are signs of things slowing that the level of rates is having an impact on the economy. by the second half of the year, as i said, we expect that gdp growth will be pretty close to flat. we have gains around .50% after running 3.5% to 4% over the last two quarters. >> given the ecb, the piece in the journal today, about the job the federal reserve won't do. that is to try to stabilize, you know, currency fluctuations and foreign exchange. this just made it worse this week. in asia, a strong dollar has

already been the story of the year according to this. what do you think this gentleman who wrote this is saying? is he saying it is our job if we want to keep currency stable to follow the ecb whether or not it makes sense? is the fed supposed to be looking at that? that's the third mandate? >> right. i don't think the fed wants to be targeting any level of the currency of the dollar. it certainly feeds into the expectations about inflation with a weaker doll ar would put pressure on the stronger. at the moment, we have the ecb and we expect the bank of england to follow suit probably by the fall while the fed will not cut rates until the end of the year.

there is pressure there. our heexpectation is as the economy slows, we will see aggressive cutting in 2025 and it will out-pace the ecb and boe. we believe the dollar will str strengthen in 2025. there are a lot of mixed views with the election and the outcome for the dollar. >> you haven't talked about anyone feeling uncomfortable with the stock market at these levels. i don't know about the underlining economy, but there is a lot of interest in financial assets and meme stocks and bitcoin. in that regard, it doesn't look like we've been that restrictive. everything you just said almost sounds like goldilocks to me, michelle. soft landing and we get some cuts eventually. things are not too hot. not too cold. you're in a good mood. it's friday.

doughnut day. >> it's doughnut day. it's friday. in a sense that we are not looking at hard landing. inflation is moving lower. it is an environment right now that looks pretty well supported for financial assets. of course, one of the expectations is as the federal reserve lowers interest rates, market rates will move lower. i guess that's something that we need to see. right now, you can see in the last few weeks, we've seen ten-year treasury yields moving lower. expectations about the economy pooling and giving the fed room to cut rates. the question is whether or not we can get lower market rates following the fed down, particularly against the back drop of still a very expa expansionary fiscal policy and treasuries that needs to be digested. one of the things as i look ahead, the market may have to be surprised, if you will, by the fact that even if the economy

slows, we are not going to see the federal reserve going back into an easy posture. it is just about the fed getting to neutral. we may not see longer-term yields fall as dramatically as we typically do as the economy slows because of the good deal of supply. >> all right. thank you, michelle. >> thanks, joe. >> i think we should be in a good mood. it's a friday in june. it's better than a friday in february. >> yes, yes. >> and doughnuts. you throw in the doughnuts. >> you are getting to the longest day of the year in terms of sunlight. i walked out this morning. >> when you go to bed, i have to draw the curtains when i go to bed. >> no, i don't go to bed the same time you do. i go to bed at 10:00. >> that's not healthy. >> brian, too.

>> he, too. at some chi-chi restaurant. when we come back, former new york mayor michael bloomberg is jumping in on a bid to buy the minnesota timberwolves. details next. and gamestop quarterly results that were not expected until next week. revenue fell to $882 million. the loss was narrowing than a year ago. there is not a conference call. that is the usual way gamestop does things. meme stock leader roaring kitty will hold a youtube live stream at noon eastern time. there is an s.e.c. filing on this right now. it is not something that's not real. the e alesarre numbers. "squawk box" will be right back.

to start a business, you need an idea. it's a pillow with a speaker in it! that's right craig. a team that's highly competent. i'm just here for the internets. at&t it's super-fast. reliable. you locked us out?! arrggghh! ahhhh! solution-oriented. [jenna screams] and most importantly...

is the internet out? don't worry, we have at&t internet back-up. the next level network. i sold a pillow! >> announcer: executive edge is sponsored by at&t business. next level moments need the next level network. former new york mayor michael bloomberg has agreed to partner with al an alex rodriguez to buy the timberwolves. he agreed to buy the team years ago, but the sale was halted in march because the owner said they missed the deadline to make the final payment. rodriguez said he has the cash, but was delayed by the nba and the approval of the transaction.

they accused taylor of having sellers remorse because of the team's value. taylor said his change of heart was because of the good vibes of the successful season. they are headed to arbitration. taylor bought the team in 1984 for $88 million. >> and they will pay them more and michael bloomberg will be part of it. >> they were held up by the nba? >> if you are going to back elon musk's contract -- >> i would try to weasel my way out of that. >> what? >> oh, yeah. >> it's like a house. >> weasel. weasely. i would like to buy -- speaking of this, i think cramer ought to get together with some of these.

philadelphia eagles owner jeff lorie is looking for a stake in the team. a transaction could value the eagles at $7.5 billion. the size of the stake has not been determined and lurie would not selling a controlling stake because he is a minority. lurie acquired the eek eagles i 1994. this is for $195 million. this comes a month after the buffalo bills is exploring a sale of the non-controlling my majority stake. i'm kidding. i'm not kidding. he loves them so much. he knews people. >> he knows some people. we know some people. we will have a fabulous segment coming up. i'm excited about today. it is the most wonderful time of the year. that is because today is

national doughnut day. we will talk to the owner of rise doughnuts. a fascinating family story. started a doughnut company. as we head to break, a an look at the s&p 500 winners and losers. [thunder rumbles] >> announcer: winners and losers is sponsored by state street global advisors. ♪ ♪ the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. it still does. what can you do with spy? ♪ ♪

[thunder rumbles] ♪ ♪ from recent grads... ...to rising stars... ...to living legends. —you got this. —thank you. vanguard's retirement solutions can help all your employees

be well on their way to their financial goals. that's the value of ownership.

good morning. welcome back to "squawk box." we are live from the nasdaq market site in times square. on this morning, you will see the futures doing a lot of nothing at the moment. dow futures down 12. s&p futures are flat. nasdaq up by about 14, but that's because everybody else is thinking about other things, like maybe? >> doughnuts. today is national doughnut day. it is literally one of my

favorite days. my ain vnniversary and children. anniversary. children born. >> you said this is your favorite day. it's too late. >> joining us to talk about this is hugh and lori. the co-founders of rise doughnuts. i happened to go to it in 2002 when you first opened and the line was out the door. it was a crazy situation. you have blown up on instagram and everywhere else. people come far and wide. i know people who drive hours away. the line has gotten better. >> the weekend are still nutty. we are now open seven days a week. the availability to get them every day makes it easier. >> i don't want to become the dave portnoy of doughnuts.

to speak to how you created this company and what happened. >> i guess the simple kind of answer to that is we were all in the midst of the pandemic at home. laura and myself and our three boys, quinn, lucas and henry. henry wanted to make doughnuts. he wanted churros. we didn't have that. we made doughnuts. quinn wanted to make doughnuts. he made doughnuts. they were better. laura and i were like throwdown. we started making doughnuts. a couple of weeks later after tweaking with the doughnut recipe at the house, we decided to launch a popup. we had no expectations other than a creative outlet to get out of the house. people showed up. i didn't expect that we would sell a lot of doughnuts. i thought it was new york style. grab a doughnut or two. in wilton, connecticut, people

bought by the dozens. we sold out in 28 minutes. it took hours to fulfill the orders. it was crazy. >> when did the social media thing happen for you? it blew up. >> it did. we started an instagram account called rise doughnut on that first day. we didn't tie our names to it. both of us are chefs. we have been doing this for 20 years. we have restaurants. we didn't tie anything to the account. people saw doughnuts and went b bonkers. >> i tried to eat doughnuts wherever i am. i actually believe these may be the best doughnuts in the country. i know that's a big statement to be made. >> we believe that as well. >> do you go around now to other doughnut places to try -- how would you review? >> yes, we always traveled for doughnuts. we love doughnuts. we're filling our own void when

we started this. >> you don't look like you eat doughnuts all the time. i'm dying to eat these doughnuts. >> we balance it with other things. >> we realize wherever we went and traveled over the 20 plus years we have been together, no matter what town we were in, we would try doughnuts. it was like this theme that why not make some doughnuts ourselves and try to beat those doughnuts that we had that were our favorite versions. the fritters. >> what is that? >> this is one of your favorites. >> my favorite one. >> cinnamon. >> it is outrageous. >> chocolate buttercream. roasted pine appapineapples. thoses those are misfits. apple fritters.

they are lovelyi made. >> i was eating none of this. i don' i don't know how i'm getting out of here. >> our apple fritters. it is 160 pounds of apples that goes into 300 apple -- 30 dozen apple fritters. it takes three or four hours to make. >> without those hours of chopping and tookcooking. >> is this easier for you? have the costs gone up? >> i would say in certain respects, we streamlined operations. we learned how to make things more efficiently. what has become more difficult, laura and i never set out to be business owners. we're chefs. you stumble upon an llc and i

have to pay these bills and taxes. that's the stuff you learn about. >> how muany employees? >> 15 to 20. >> are your kids involved? >> yes. >> what is the long-term hope? multiple stores? >> yes. we're krcurrently in the proces of looking at the second location. it is tbd. new york is actually one of those involved and coming into the city. probably some time in the next 12 months, we will get our second shop open. beyond that, we want to go larger than that, but in a responsible way. >> guys, congratulations. >> thank you so much. >> i'm super excited for you. i will tell you that first line, i waited on this line -- a long, long line. hours. i kept saying to everybody online, is this really worth it? it seems crazy. then i ate the doughnuts.

it's amazing. >> it all makes me depressed trghss we get a roman ou. >> eat a doughnut, people. >> do a fritter. you can pull them apart. car, take me home. (♪♪) car, can you turn the music down a little? of course, james. thank you. ♪ (suspenseful music plays) ♪ um... car, this isn't the way home. that's right james, it isn't. car, where are we going? we're here. surprise!!! the future isn't scary. not investing in it is. car, were you in on this? nothing gets by you james.

nasdaq-100 innovators. one etf. before investing, consider the fund's investment objectives, risks, charges and expenses. visit invesco.com for a prospectus with this information. read it carefully before investing.

venture capitalist david sacks hosted a fund-raiser for donald trump in san francisco. the former president raised $12 millionat the event. our brian schwartz joins us with more on this. what happened last night? this was a big fund-raiser. >> it was a big event. there were expected to be 50 people there at the place in san francisco. the attorney, republican attorney, based in california, put out on social media that the winklevoss twins where there. coinbase representatives were there and crypto was there.

there were heavy players at the event last night according to who was there. it is pretty notable in a way because it goes back to what we have been talking about for a while which is the shift by some people in the industries, particularly tech, toward donald trump. $12 million for trump in san francisco is a pretty good number. that's not bad. you know, i think some people thought it could be a little bit more. that's a solid number for trump out in that part of the country. >> the report in the last six days, it is $400 million. >> erhe raised that much. >> in six days, where does that put the standing total? >> the reports are interesting. it is indicative of, you know, the larger fundraising success he had post conviction. >> he was way, way behind. >> that's right. he is starting to come back. >> is he above now? >> i think when the numbers come

out, the official numbers with the election commission filed in the next month will show it is closer. pre-conviction and pre-may, we were talking about buying and dunking on the fundraising efforts. now he has just surged. i don't think it is to be fair with the conviction. >> when you hear these are crypto people involved in it, too, it tells you something. >> he has been very public about saying i'll help the crypto community. that's one of his new planks, if you will. >> that's right. i spoke to mark cuban. i was talking to him about what is going on in the tech community. he would have insight. he said to me his big concern and he is a biden supporter. he believes that gary gensler, the chair of the s.e.c. and how he has been handling crypto and the crypto industry, could hurt

biden particularly with young entrepreneurs and young voters. that is indicative. people around biden's camp are seeing this and seeing people going to trump in the tech world is raising alarms. that's what cuban is saying to me. >> raising the alarms in terms of what it may mean for the s.e.c. action or is dit too lat thilate? >> what influence is this going to have at the s.e.c. and in terms of the election? i think people may go back to trump because of what gary gensler is doing at the s.e.c. that's the theory coming from mark cuban. >> brian, thank you. and we will have the latest from the apple developer conference which srttas next

week. i hope to avoid passwords forever. "squawk box" returns in just a moment.

welcome back to "squawk box." apple looking to introduce a password app. it is part of the next operating system version and software expected to be announced on monday at the developer conference. the app would compete with password managers. anything that can help us not have to remember all those passwords. it's like a problem every day in my life. solve the password problem. >> you keep saying apple and all i think about is the aprple fritter. >> after the break.

appar apple fritters for all. we'll be right back. we believe it is what makes us stronger as a company and fosters innovation and allows our company culture to thrive. i'm honored to be a leader in the community and hope that our successes here at boksu inspires other leaders to create opportunities and environments where the queer community can be embraced and celebrated. ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪

or the family hauler... he needs to protect it. this father's day, give him the gift of weathertech. from laser-measured floorliners and cargo liner to keep his interior pristine. to seat protector to guard against stains and sunshade to block harmful uv rays. the cupfone perfectly secures his phone while driving. order these american made products or a gift card at wt.com. happy father's day!

all right. another new filing from gamestop this morning.

now the company say they may offer and sell up to 75 million shares of class-a stock. the stock we have watched soar last week. this is the daily chart. >> that's within the last hour. >> it came out with earnings. these results were not expected until next week. potentially, it is to clear the decks of disclosure issue before the stock sale. now we get the word they are looking to sell up to 75 million shares. this support dated this week with the prices on june 6th. the last reported sale was 46.55. we saw it above $65 this morning. now, it was up 30% when we first looked at it at 6:00 a.m. now you are seeing it down in the pre-market by 7% at 42.31.

>> nobody said they reported a loss. it has nothing to do with it. >> it gdid come back slightly. >> people might have known immediately. >> it is so interesting. the flip side, there have been times when amc has done this and it has been good for the business. >> good for the business. not for the stock. >> amc was so low at some point, the stock went up. >> if i owned gamestop, i am looking to sell. >> gamestop is a totally different situation. they have debt. if they can get rid of the debt. >> they're on their way. >> gamestop. >> there's nothing. >> they might be, cramer was talking about bitcoin. there are other ways. you have to fundamentally transform whatever gamestop is. >> they have to transform it. they haven't. maybe ryan cohen was going to come up with something miracle idea. >> right. like doughnuts. >> doughnuts. >> roaring kitty.

>> yeah. >> we'll watch the shares right now. everything comes back to doughnuts today. idaho power and pacific corp is putting on hold the 300-mile transmission project that has taken 18 years to bring forward. this toll follows the issue wit regulatory review which caught developers off guard including the executive who led the project. he joins us this morning. adam richens is the chief operator officer. adam, this is a crazy story. just looking at the number of years you have been working on the permits. why don't we back up and talk about why you started this project to begin with. this high transmission lines. what's at purpose? >> you are right, becky, it has been a journey for us.

i think a little bit of context is important on permitting delays and why it matters. it is a really exciting time to be in the utility space. it is a renaissance of sorts for the energy nerds. there are two changes going on. unprecedented load growth with on-shoring and a.i. the second is that many utilities like idaho power are using clean energy technologies to meet the growth. we have the growth and we have the decarbonization movement. what ties this together is the transmission system, the grid, and transmission lines like hemingway and gateway west are the highways of the energy system. we need them to move clean energy around when we need it in real-time. here's the problem. the problem is the transmission lines are very difficult and time consumer to permit under the current rules.

you are right, we're 18 years into the making and we still don't have the permit. to give you perspective, i like to joke, b2h, if it was a human, it would legally be able to vote. in a couple years time, it will be in a bar ready to drink. we have a valuable asset that will provide dividends for years. it has not been an easy journey to say the least. >> this connects what? it takes power from what source and takes it where? >> it moves it from oregon to idaho and back and forth and plus we connect to other areas including wyoming and desert southwest. it will move clean energy from, you know, wind energy from wyoming all the way up to the pacific northwest when it taps into our system. desert southwest to the pacific northwest and then, of course, we will be able to tap into the

clean hydro facilities to serve customers everywhere. >> how long did you think it would take to permit this project when you started it? >> it's a 2k3great question. we anticipated it to maybe take four years. transmission lines go through federal lands. you have to go through the anyth national policy act. we figured four-to-five years. of course, ten years later is when we got the record decision. we had to go through the state process. that's another five-to-ten years. you cannot start the state process until you finish the federal process. the state process application was 20,000 pages just to guf you give you an idea. we had to go through local permits. we knew it would take time, but nobody would guess 18 years. >> why did you stay with it or begin? i cannot imagine taking on a

project for 18 years. does it still make sense at this point? >> absolutely. the but pobeauty of transmissio is not many people are dogging it. if you look at studies, you need three to four times more transmission in the united states to get to the decarbonized world. even with the delays and costs, it still makes financial sense and a valuable asset for 50 years. we have absolutely stuck with it. it is still the best project for our customers and shareholders. >> what is the reason that the blm, bureau of labor or land management actually shut it down or halted it for now? >> we received a record decision in 2017. before you can construct a notice to proceed, as part of the process, we spent literally 100,000 hours performing culture work. we surveyed 20,000 acres of land. we drafted pages and pages of

reports. unbeknown to us, a newspaper article was written about a project in washington, d.c. and the deficiencies. after receiving the article, the federal government and blm decided to audit our work. that caused an additional six-month delay. >> adam, very quickly, what do you think needs to happen to get us to the power needs that are expected over the next three-to-five years? we had peter here yesterday and he said we will have prices go up 30% if we don't have more energy, transmission lines and power brought to the united states. >> i would be remiss to say if federal and state employees are doing their best. the government needs to move faster and needs to coordinate effectively between agencies and set timelines. when you can, state and federal

governments need one permitting process which you see in nevada and other places. >> adam, thank you for joining us this morning. we appreciate it. good luck to you. >> you bet. thanks for having me. it is just after 7:00 a.m. on the east coast. you are watching "squawk box" here on cnbc. i'm andrew ross sorkin with becky quick and joe kernen. we have numbers to schohow you. dow off 24 points. nasdaq off a point. the s&p off four points. we will get over to dom chu now for the pre-market movers and maybe some meme stocks, dom. we have to address what you talked about in last ten minutes. the gamestop trade. some are going to call this the main event of the day with the jobs number coming up. check out this main event for what is going on. gamestop shares are fractionally higher. what i will tell you is on top

of what you said in news with the maybe surprise 75 million share offering of stock that these guys are going to conduct, there is also an early release of the earnings report. they were supposed to release on june 11th. they came out and reported results. it was a big move. gamestop shares were up 10% at one point. a lot of speculation was around whether or not gamestop was a function of the roaring kitty youtube live stream at noon today. there was a screen shot posted and we know the story has been about the roaring kitty-keith gill screen shots. a portfolio stock and option worth $557 million. cnbc has not verified the size and accuracy of the stake. the surprise earnings announcement on top of what

happened with the 75 million share offering has put a lot of volatility in the shares. there is a huge move with regard to what will happen at noon today, that's when the live stream is supposed to happen. by the way, the last folks checked, 14,000 people were in queue to watch the live stream. wild gains and losses in the pre-market trade. from the meme stock trade to microsoft which is moving between gains and losses. keep an eye on the analyst note. oppenheimer is raising the target to $500 from $450. they are increasing the estimates on the number of key fronts with the presence of a.i. microsoft shares just about flat on the session. we'll end with the check of the regional banks after moody's

placed six smaller regional lenders on watch for a possible downgrade of the longer term debt due to the size of the customer real estate loans. those banks are not trading or very thinly traded pre-market. wafed and glad stone and fnb and first merchants and fulton financial as well. we will see if there is a spillover to other larger regional banks. keep an eye on the etf ticker. becky, so much news on gamestop. i have never seen thinking like it. >> it changed it to you thanking? it was me earlier. >> i didn't see. >> did they do that on purpose? they probably did that on purpose. >> save time. >> dom, jack's tournament. everybody wants to win it. did you see the leaderboard? >> adam hadwin has a one-shot lead over scottie scheffler.

>> chathis is huge. everybody wants to have jack come up to them after the 18th on sunday and shake their hands. >> i'm excited. it's a great tournament. >> this is how the producer is trying to control us. we don't always listen. we do our own thing. >> they do things that are wrong. >> they hold the ultimate card. you know what they can do. coming up, preview of the morning's big jobs number. what it could signal for the fed and the markets. we've got that next. and later, arthur brooks will join us to talk about the mood of the country and how voters are feeling ahead of the first presidential debate and much more. "squawk box" will be right back. an with powerful, easy-to-use tools,

power e*trade makes complex trading easier. react to fast-moving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you won't miss an opportunity. e*trade from morgan stanley (luke) this will be a gold mine of local intel. so you won't miss an opportunity. (marci) so, tell us about this corn festival. (stylist) oooh you got your corn pudding... (marci) so...is it safe around here? (stylist) sometimes. [luke gasping] (marci) no eyebrows? (luke) think of how light it'll feel in the summer. we gotta run. eleven thousand more neighborhoods to go! (vo) ding dong! homes-dot-com. the future is not just going to happen. you have to make it. and if you want a successful business, all it takes is an idea, and now becomes the future where you grew a dream into a reality. the all new godaddy airo. put your business online in minutes with the power of ai.

norman, bad news... put your business online in minutes i never graduated from med school. what? -but the good news is... xfinity mobile just got even better! now, you can automatically connect to wifi speeds up to a gig on the go. plus, buy one unlimited line and get one free for a year. i gotta get this deal... i know... faster wifi and savings? ...i don't want to miss that. that's amazing doc. mobile savings are calling. visit xfinitymobile.com to learn more.

doc? . we're counting down to the may employment report at 8:30 a.m. eastern time. just an hour and 15 minutes from now. let's get a preview from steve liesman. >> to paraphrase "lord of the num numbers," too low a number and concern will quickly rise the economy weakening more than expected. we are looking for 190 this morning. it support from 175. it is still 50 k less than the average we had. continuing the sub-4 trend we had. hourlily

hourly earning is 0.3%. last month's 75,000 downside surprise was a big break from the pattern. the consensus had payroll 70% of the time going back to january of 2023 and missed by 100,000. some forecasts are looking for catch up this morning. we expect re-acceleration says morgan stanley says after softness in april after the temporary readjustment after the warm winter. morgan stanley and others looked through any strength this morning because they think any rebound will mask a broader slowing if anything is coming. citi thinks the weakness will start today. they wrote we expect soft market data in april and may is just the start of the sharper weakening in the labor market in the coming months to have fed officials cutting rates in july and 100 basis points total this year. that's what citi thinks. payrolls will have to weaken

soon and sharpening for the forecast to be right. there's a real question how much slowing to hope for. too much and the soft landing quest could turn into a hard landing. guys, most of the data i'm seeing this morning or i've seen in the lead-up to this has been relatively strong. high frequency data has been strong. the jobless claims, as joe was mocking this morning, 1,000 or 2,000, no big deal at all. >> how do you think citi gets to that conclusion? >> if you follow what i said earlier, guys, the chart on missing payrolls, not just they, but the street has been wrong about the strength in the job market. i gave you january of 2023. you go back further. that's the chart. the actual and the blue line is the forecast. you can barely see the end of the chart. that's what made last month such a big deal. finally they where under or the job came in under the forecast. they have been forecasting this

decline. i'm not sure exactly what's behind it. i will say this, guys, my friend alex, from one of the agencies says there is a big buyer last night or this morning of july of 2024 fed funds contracts. we have the probabilities there. it ended up that buy ticked up a little bit. it's a 20% probability for a july. somebody came in and made a big purchase this morning or whatever it was overnight. >> really? >> yeah. >> why? >> maybe it is based -- >> based on today? >> the soft payrolls and then you have lagarde who took her bet based on her staff's forecast. she said i see inflation coming down. my staff says it is coming down. i am going to go with the forecast here rather than saying i don't have the confidence. she has the confidence to cut. those probabilities now, you know, there is still september

with the odds on bet and november and december. >> all right. we are going to go. we're going to go. we'll go to break. "lord of the rings" is three movies. >> one ring to divide them all. >> which movie? >> the thing i quoted. >> only one won best picture. >> they gave it to them because it was the trilogy. it is for recognition of the accomplishment. >> yes. jrr tolking. i'm jrr kernen. >> i was going to say the one i was quoting was the first one. the quest and standing on the knife's edge. >> that's right. >> my favorite. among my favorite lines. >> democrats think right now. the future of the world. >> i bought my new tv and the

first thing i did was bought those movies. we got to go. >> hillary said the guys had to storm normandy and all you had to do -- >> how did you get there? >> arthur brooks. arthur brooks is coming up and we will talk about why we are so unhappy. what did we do to deserve those two? gamestop ahead of roaring ki kitty's return to youtube for the first time in years. what he may or may not say and what is means for the stocks is next. as we head to break, here is a look at the pre-market winners and losers. oh, charades! - okay! - love it! umm... first word. - tonsillitis! - nostril! uh-uh... bill! uh-huh... - hip-hop! - limping! mmhmm! medical bills! uh-huh! - pancakes! - cash! who pays you cash when you have medical bills? grrr! no idea. [tapping] gap!

the gap left by health insurance? who pays cash to help close that gap? aflac! oh, aflac! get help with expenses health insurance doesn't cover at aflac.com pictionary?! champion iron offers a rare solution to decarbonize the steel industry. which represents up to 10% of global emissions. the company recently doubled production capacity at its mine in eastern canada. it is now investing to produce one of the world's purest iron ore. enabling green steelmaking without the use of coal. controlling a large portfolio of high purity iron ore resources. champion is considering strategic partnerships to further develop the region. champion iron.

energy fuels, a leading american uranium producer, is ramping up production to supply expanding nuclear markets and diversifying into rare earth elements, key ingredients in many clean energy and defense technologies. energy fuels.

all right. a new filing from gamestop. the company says it may offer and sell additional 75 million shares of class-a stock. that's an amendment from the earlier filing where they planned to sell 45 million shares. that was back in the middle tof may.

the stock was up in the pre-market, but now down in the 6:00 a.m. hour. that 42 is very highly elevated. still at 82% on the one week. joining us rights now to talk about this is amy lynch of e*trade advisory, a diverffvisi e*trade. amy, we have expecting roaring kitty, keith gill, to do a youtube video that he releases later today, i think noon eastern time, is when it is expected. there has been talk at this point of the potential to kick him off e*trade. banning him from the platform. what would be the cause or rationale? what is e*trade thinking through at this point? >> good morning, becky. it is a pleasure to be on the show today. for a broker to kick off a

customer from its platform, they can do it really for any reason. if you look at most brokerage contracts, there is a clause that says they can restrict an account or close an account at this sole discretion. we saw this actually happen the last time around in 2021 when several brokerages did the same thing. so, they very well could, but typically they do not. >> they banned people last time around for what cause? >> they were not meeting margin calls. there were issues with not being able to fulfill their contract obligations, which is definitely a reason why they could do that. this time around, we don't know if he has fulfilled his contract obligations or not. we have no evidence to the

contrary. so, if they were to look for a reason, it could be due to suspected suspicious activity within the account. that is suspected at this point. it's reearly days in the meme stock frenzy we're dealing with right now. >> is there reason to think there is suspect activity here? is there the potential for a backlash from retail investors if they ban him without having any proof of anything? >> absolutely, there is a risk of backlash. e*trade and other online brokerages really benefitted from the meme stock frenzy of 2021. you would think why would they want to lose all of that new business? that is a strong consideration here. also, i know that e*trade and morgan stanley both, have bright

come epliance and legal people. they will watch roaring kitty and keith gill at noon today and they will need to make some decisions. >> what would he need to say in the video that would cause them to ban him? what would reach their radar screen in things that would be problematic for e*trade? >> it does get down to what he says or shows. he could be showing videos as well as speaking within his presentation. if he gives any inkling that he is working with a group of people or coulludingi in any wa that could mean he is in contact with individuals that may have inside information. i strongly doubt that at this point. it's possible.

we don't know where he is really coming from with his information at this point other than his own research. >> if it is just his own research and he gets on and does what he did back in 2021, is that a problem? >> most likely no. at this point, he would be acting as a private citizen investing in his own personal accounts. as a private citizen and doing his own investments, he can talk about his own book as much as he likes. >> there was a goal like in 2021 where people followed him because they appreciated his opinion and wanted to jump on board with him. >> that's right. now he has an even bigger following. this is his fsecond time around. he knows how to play the game. he's played it very well. i don't know if anyone has talked about this before, but early in his career, he was a

chief compliance officer. he also was a registered broker-dealer. he knows the system and he knows the rules. he nows how to operate just at the edge of those rules. >> were you surprised by the size of the position that's been shown? >> absolutely. i don't think anyone expected him to put that kind of money on the line. >> yeah, i think that is underselling the whole thing. we are watching gamestop shares today. 43.31 is the last trade. amy, thank you for joining us today. >> thank you for having me. okay. coming up, professor and podcaster arthur brooks joining us to talk about the mood of the country. and governor kathy hochul slamming the brakes on the proposal and the tax hike. we will talk about this next.

>> announcer: time for the aflac trivia question. when did the u.s. start trag tracking unemployment? the answer when "squawk box" returns.

what is cirkul? cirkul is the fuel you need to take flight. cirkul is the energy that gets you to the next level. cirkul is what you hope for when life tosses lemons your way. cirkul, available at walmart and drinkcirkul.com.

♪

>> announcer: now the answer to today's aflac trivia question. when did the u.s. start tracking unemployment? the answer. 1929. waystar will raise $9628 million and one of the biggest listings with the pricing at $21.50 and expected to be in trading today on the nasdaq under the ticker symbol w-a-y. this should not be mixed up with royco. and we when return, we will speak to professor arthur brooks

on happiness and the mood of the k country. and apple's tech conference starts next week and we have a preview of what investors should be expecting. "squawk box" will be right back. income suite, d backed by over 145 years of risk experience, helps investors meet their goals. pgim investments. shaping tomorrow today.

(♪♪) (♪♪) what took you so long? i'm sorry, there was a long line at the thai place. you get the sauce i like? of course! you're the man! i wish. the future isn't scary. not investing in it is. nasdaq-100 innovators. one etf. before investing, carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com from pep in their step to shine in their coats, when people switch their dog's food to the farmer's dog, the effects can seem like magic. but there's no magic involved. (dog bark) it's just smarter, healthier pet food. it's amazing what real food can do.

if your business needs a new application then developers will have to write code. a lot of code. if an application needs to be modernized then you'll need time, resources... and caffeine. if this sounds daunting then use watsonx code assistant ai designed to multiply developer productivity so you can generate code quickly. let's create a more modern foundation for business, with watsonx code assistant. ibm. let's create.

let's bring in arthur brooks, american enterprise institute professor. start with the disclaimer. i'm extremely happy. on a friday in june, i can't eat doughnuts, but i'm happy because i'm learning what i need to do. all health comes from getting your weight under control. at a certain age. you're happier. >> is that what you're doing and it's going well? >> i'm just not eating carbs. you have your family. it is not all about what's going in washington. i'm totally happy. my question is it's just under five months to the election. is there a way for us to find overall happiness with what we're facing for the next four and a half months and what we're going to be subjected to? >> the political climate is

designed to make us less happy. we are the product. hatred and bitterness create a lot of political energy. that mobilizes people to get involved in politics. the other problem we have is our media culture has told us to substitute being active in the communities for yelling at our tvs. that is what a lot of people consider to be a good citizen. i'll watch tv at 8:00 or 9:00 at night and watch part isan stuff and be angry about it. that makes me more miserable and other people more miserable. my misery sells advertising dollars. we are the product in the culture. >> my basic premise is that each side has so many problems with the candidate being put up by the other side that they can barely talk to each other. they are both just as committed to their viewpoint on both

sides. i want to blame someone for that. i don't know whether to blame a faction in the democratic party for why we're stuck there and who the successor would be, if it is not him, or on the other side, you have the 30% of the hardliners that really do love donald trump. i want to blame someone for that, but sometimes there is an expr expression. you don't get the leader you need, you get the leader you deserve. what did i do? what do the american people do to deserve this choice where both sides made faustian deals? >> when ed koch lost in his concession speech, he said the people have spoken and now they're going to pay because you get the leaders you deserve. >> we suck as a people. >> we go through waves where we tend to be dominated by the

ex-treenle extremes and we come back to the center. we're in the extreme right now. the incredible loneliness and mass psychotic break which was the pandemic. that's why this period looks like the late '60s and 1970s with political pollpolarization. i see this a lot at the local level. here is the amazing thing. i'm on the road 48 weeks a year talking about happiness. i was last night in midland, michigan. the mayor of midland, michigan was there and i talked to her for a long time. i have no idea which party she belongs to. she loves her city. i see governors who are more like this. this is where we need to look and this is where we need to get involved. stop watching the information.

>> the situation we'ring e livin right now. i get what you're saying. the local. the here and now. >> four and a half months. >> the whole country is angry. a lot of anger. i don't think there should be all the anger there is, but there is. it probably is going to get worse. how do you think about that? >> the problem with the anger and what we see actually is a more underline malaise. you are married. there is an underlining problem and it breaks out in a fight because you left the cap off the toothpaste tube. the culture is for us to vent. a lot of people have a big concern about the general culture decline in this country. there is basically three things you need to know about american culture. number one, live however you

want. number two, don't tell me what to think and, number three, keep my hands off my kids. that's what it comes down to with most americans. we have people violating that all over the place. they are scared and angry about it and we project that fear and anger on the elections and candidates. i know, the candidates are inadequate. we are not getting the people we want and we project it on the political views of our neighbors. >> arthur,i both sides have bee put into a position where they both have to swallow really horrible facts about their candidate. >> yeah. >> both sides have arranged it. faustian bargains. the 30% that love donald. they really do love donald trump. they love him. no other candidate can win without that. we are both stuck. trump people have to say, yeah,

i'm okay with a felony. i'm okay with a porn star. biden people have to say i know he is barely still with us mentally. i know all this stuff. they both have to pretend there iss nothing wrong with their candidate. that puts us in a bad position. >> we see this in history. it happens every once in 50 years with the american cycle in history. what happens is we don't like our person, but we're more afraid of the other person. there's a dislike on our side, but a real fear of the other side. that's ginned up by the political culture. social media -- >> does that make sense to you? >> you can get into the equilibrium. the truth is, herb stein used to say things that can't go on forever, won't. we won't put up with this forever. >> what example? you say this happens every 50

years. what is the 50 years ago example? >> what generally happens is you finally get a breakout leader who says don't you want something better. you want the breakout leader -- >> 2028? >> yeah. 2028 is the perfect time. again, it looks like it has been going on and on. >> if it is not broken before that. >> we're not that close. good news. capitalism still reigns. we still going to work. we are still driving on the correct side of the road. we are still paying for our groceries. >> anger, though, i'm amazed. yesterday, a few miles from my house, 25-mile-an-hour street, i'm not the most conservative driver. i didn't pull out in traffic at a stop at a t-stop. the lady behind me started honking and screaming obscenities out the window. i was shocked. i wasn't sure she was talking to

me. >> you had a couple of chances to turn and you didn't? >> no, i was there for ten seconds. >> if people don't turn when they have a chance. >> ten seconds. >> it was joe. >> i don't want progressive tracking how i'm driving. it is 25 miles an hour and she rolls down her window. it's 4:00 in the afternoon. >> that's not because of politics. >> i know that. >> i don't know if itis from politics or not. i have a political question. you will say it is politically moti motivated. >> you will find a way to say trump is objectively so much worse than biden. how is that possible he has people to support him? same old stuff. >> i think there is one candidate that spews a sense of ha hatred, genuine hatred. >> just talk about both sides have their reasons for not liking the other candidate. >> possible to have somehow say

one is a convicted felon and the other isn't at this point. my question to you is how do you think about that? do you have one candidate who -- by the way, clearly as a genuine age issue, we can debate that and what it means for the country and accculture. >> a 20-year pedaling scheme to enrich himself. >> in the family? >> biden inc. >> he had billions. >> my question to you is what you think it means for the country. we had a president for four years who did -- i think you would argue spew hate. maybe you would say i'm wrong. maybe you say he was not hateful at all? >> incomes rose 16% from being down before? there was no geopolitical problems? that president is who you are

talking about? >> solve this. >> one candidate is more volatile. one candidate actually is the kind of person that represents in his rhetoric, something that is more extreme than the other. for sure. >> you talk about character all the time. >> yeah. here is the problem. what people are concerned about is the general degradation of our culture and country. >> how do you think the culture got that way? >> the culture got that way because we weren't watching the store, andrew. >> we also had a president for four years who was hating every single the day online and on television. you don't think that changed the culture of this country -- >> averting his presidency from day one with the russia hoax and "the new york times" one pulitzer prizes? every week. it never stopped. his presidency was sabotaged

from day one by people who didn't want him there. you don't realize that? >> that is leading to the malaise. what you experience with the coronavirus and pandemic, they were watching what their kids were learning in public schools on the zoom screen which has nothing to do with the rhetoric of donald trump. as much as i can't stand the rhetoric of donald trump, they were watching their kids' math teacher talk about activism and protests. that is the degradation of the culture they are cognizant of and that's what they're worried about and what is bringing down the country at this particular point in time. >> you are suggesting that is the responsibility of the different political party? i recall donald trump backed vaccines and closed down the country. i'm not sure what you are getting at. >> glen youngkin got elected in virginia. those are the policies that are

being promoted by the political party that has less extreme political rhetoric the level of the presidential candidates. >> at the same time, youngkin doesn't want you to have access to contraception. what is going on? >> that's not what they're saying. >> what are they saying? >> they are not saying that. >> that's what he is saying. that's what he's saying. that's part of the glen youngkin plan. >> you're a father. you're worried about the future of the country they will grow up in. >> deeply. >> you are worried that candidates are not up to the task to lead the country to bring us together and create a country that is better for your kids. >> i agree. >> that's the problem. there are different ways to manifest that problem other than spo spouting off. i don't care what the problem

is. they are both problems. that's the mood as we go into the debates. all we can do is look at the debates as a car crash happening in front of us and get entertainment value from it. what we really need are leaders to say i will help us get a lot done to make progress and bring the country together. if you don't want it, then i'm the wrong guy. that's the leader we need. we haven't had in a long time. >> it is a very divided country. half of your fellow citizens are supporting the anti-christ. let them have their opinion that they want to back him for whatever reason and they have reasons not to vote for biden. they're entitled to that. i don't think you ever have done that. they're deplorable. dimon djamie dimon tried to tel that in davos. >> i would not quote jamie dimon. >> i'm not saying that. he was saying don't vilify and

denigrate and condescend. >> i would vote for you. >> thank you. america is not ready for me. somebody was talking to who made a brilliant said, i can't stand but i really like the people who love him. isn't that interesting? there's a big difference. right? i bet you understand that. >> no. >> i bet that you understand the people who really like trump and follow trump or really looking to trump -- notwithstanding the negative feelings about trump, those are people that worry about their kids- >> i struggle because there's a lot of genuinely being misinformed about what's happening. >> staedrt saying both sides feel the same. i can start with joe biden. >> we'll continue.

craig here pays too much for verizon wireless. so he sublet half his real estate office...

[ bird squawks loudly ] to a pet shop. meg's moving company uses t-mobile. so she scaled down her fleet to save money. and don's paying so much for at&t, he's been waiting to update his equipment! there's a smarter way to save. comcast business mobile. you could save up to 70% on your wireless bill. so you don't have to compromise. powering smarter savings. powering possibilities.

welcome back to "squawk box." our next guest a sports world legend making the case for strict regulations for betting on pro sports. welcome sports agent leigh steinberg known as the inspiration for the film "jerry maguire." for 50 years marked athletes like trey aikman, to make one. talk about sports gambling, good morning, and your views of it and how you think it's changing the game and what should happen? >> i think it's the existential threat to professional and collegiate sports, because the whole business of sports press on the premise that games are played on an even playing field. that both parties are trying as hard as they can and what you're seeing is an actual contest, not an exhibition like wrestling. and the impregnable wall that

exists in between gambling and sports for most of the 50 years i've been representing athletes is now eroding. it's gone, and we have nfl owners owning part of draftkings and gambling sites. we have las vegas, which never was going to have teams all of a sudden is a sports center, and we've seen the problem, which is that if the perception is that an athlete shades performance or is revealing inside information to bettors, or an athlete gets in financial problems with a bookie and is tempted to shave performance, all of a sudden that rocks the foundation of people's attraction to the sport. and we've seen so many incidents lately. a baseball player banned for

life. daunte porter who goes to a gambling and tells him exactly when he's going to leave early from a game, and there's a thing called a prop bet, which allows you to bet on virtually anything over the course of a game. so if the gambling has inside that this player is not going to be playing or come out of a game early or will be shaving performance and places a big bet on the over or the under, then all of a sudden we have problems, and this is unintended consequences. >> so if you were owners of these leagues would you ban it outright? is there some way to have your cake and eat it, too? >> well, i think that players, frankly, need to be talked to when they are in high school, college, entering the pros, and the pros in every institution

involved in that, from local high school organizations to conferences, to players associations to the leagues themselves need to constantly be emphasizing to players that they shouldn't be betting on sports. right now they can bet on a sport other than their own. the other consequence of this is that with the ubiquitous nature of the advertising that's going on, which is nonstop on sporting events for gambling sites, we're going to create a whole new generation of gambling addicts, and it is an addiction. so i think there needs to be much more thought given into how to separate the world of competitive sports from gambling -- >> leigh, i'm worried, i don't know if you are. the trains seems it's off the station on this, though. and that's sort of the issue for the valuations and all of these

teams to make any logical sense anymore that gambling become as key component of it all, because that's also helping to engage fans in a way, frankly, as the media industry and others fragment, they're trying to keep people involved. this is one of those ways. you remove the gambling component and i think there's a lot of questions about how much money everybody's going to have at the end of the day, and for the players that become as real issue. no? are you saying that, as an agent? >> yes. i'm not talking about betting. betting's been with us forever. ending betting. nothing wrong with that. i'm talking about the participants or coaches in the sport, and we've recently seen a number of different situations that look a little compromising. the fans can bet their hearts out, but you don't want someone who's an athlete getting into

gambling debt, owing the bookie, looking for a way to pay him back, that involves shady performance or coming out of a game early or -- or giving inside information. so, again, let's delineate clearly. we're talking about the participants, because of their sensitive nature of what they do ought not be gambling on sports. >> leigh, go to the leave it there. it is a fascinating topic, and i imagine we're going to be talking a lot more about it as some of these issues continue to evolve. thank you. >> you're welcome. it is 8:00 a.m. on the east coast and you're watching "squawk box" right here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. amon today's top stories -- the may jobs report will be released at 8:30 a.m. eastern time. non-farm payrolls are expected to rise by 190,000. the unemployment rate is

expected to remain at 3.9%. a new filing from gamestop. the company says that it may offer and sell up to 75 million shares of class a stock nap would be up from 45 million announced back in may. the stock was up by33% in the freeh market early this morning but come back down. now off by 15%. looking at $39 a share versus $65, a master of two hours ago. keith gill, a/k/a, roaring kitty will be holding a youtube live stream coming up at noon eastern time today. and long-time tesla investors cathie wood weighing in on elon musk pay package on x, he makes the case reauthorizing musk's pay. unconscionable to shareholders to renege on the package after already taken and overcome risks associated with tesla's rise.

the futures in anticipation, or maybe not, but we do have the big number coming in about a half hour. and we have to marginally, it's marginally green. nasdaq up a little, up 25. s&p up less than two points. look at treasurys, before we see it, there's the ten year. 4.29. let's get to mike santoli down at the new york stock exchange with a closer look at the markets, and interesting gamestop development, too, today, mike? >> yeah. we got a couple of side shows. got the small one. gamestop activating excitement on the retail side. nvidia almost its own kind of mega-sized version of that story with a massive amount of volume and investors interest around that stock, which has been a big support for the s&p 500. yesterday nvidia traded like $75 billion worth of stock. ten times what microsoft traded.

here's the s&p 500. we topped, end of the first quarter, ten weeks ago today. since then up about 2%. holding gains. two-month sideways, pullback. churning around. since that point the average stock is down probably two or three%. index up a couple percent off that march 28th high. how the market cap weighted indexes work. right? lower bond yields this week. some softening of economic data, but in general that kind of comfortable goldilocks-ish tone. hopefully it's holding. market idling ahead of the jobs number expecting to see moderate growth. cyclical wellweather groups. since october lows of last year. equal weight ed industrials and discretionary. same spot. interesting. here industrials outperformed a lot of these stocks aren't pulling back. in general telling a decent story about the current state of the u.s. economy, global economy. it's not exactly obviously

taking off to new highs but it's holding most gains off of october. now, talking about nvidia. what do we compare this thing to? look at five year nvidia versus tesla. stock split taking effect for nvidia monday. tesla going way back. his this 3,000% gain level after, say, three or years or so. two, three years. kind of where nvidia is right now. this here was a tesla stock split back in august of 2020. another tesla stock split right in there. 2022. it doesn't mean goes up or down from there but sometimes this short-term kcrescendo moment, along that period, too. a loss finding other individual stocks. nvidia at $3 trillion that move this fast. also this much fundamental mow mo -- momentum behind them, joe. >> thank you, mike. thank you. coming up --

>> hear the rest of the conversations around us. >> coming up -- is there a way to do that, do you think? >> no. what you just said? no. >> on the podcastor something? or on a -- you can do whatever. >> sure. on a podcast. whichthis is not. >> coming up, apple's a.i. ambitions. a look inside a company ahead of next week's worldwide developers conference. "squawk box" will be right back. ♪ ♪ ♪ ♪ ♪ ♪

♪ ♪

you founded your kayak company because you love the ocean- not spreadsheets. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates

matching your job description. visit indeed.com/hire apple's worldwide developers conference kirks off next week. so can investors expect to hear about a.i. plans? we think so. but steve kovach is here joining us with more. what do you think? >> absolutely hear about apple plan. delivering a gang buster announcement monday. talk about what we're expecting in a bit. like that reported openai partnership. talk about the executive behind the strategy.

john giannandrea. he reported to ceo john cook at the time. taking apple's work seriously. on full display monday. i spent the last few days catching up with former colleague whose know him well. according to those people a humble unassuming executive. one of the godfather's of a.i. great researcher and manager. and a top uber executive started up with him a couple decades said ghosted him for advice and wisdom. if you told me wouldn't be surprised if he isn't part of the big key on monday, not a showman like others like a mark zuckerberg or elon musk, guys, really those a.i. products and software announcement most

important. this is what investors are watching for. >> am i missing something? with deep respect. you know my love for apple. feels like they are so far behind. >> that's the point. >> on a.i. it is almost -- i mean, maybe they can catch up, but it's going to be multiple years, would you think. >> could be. >> why they have to partner with everybody else. >> that is the -- so his -- >> his role is more of a -- >> a strategy, too. >> -- a partnership one? not one -- >> right homegrown stuff. most interesting to me beyond the openai report we keep hearing about, bloomberg reported last week deeper voice controls for those first-party apple apps. not third party necessarily. that, to me is a signal where they're going. tell your phone what to do. >> right. >> that apps can talk to each other better. you can copy and paste between apps what have you. you can imagine them opening that up to developers. there's a limited version of that with siri now. say order maneuver, buy my

starbucks. >> spending tons of money or a.i. consumer-facing. how do you get your money back? >> another interesting thing too. openai just to run services. so interestiing about the natur of that partnership. how much is apple paying for that and all that running on microsoft cloud. >> ultimately an owepenai and n a larger google deal? >> openai monday and google and others deeming it worthy going in we'll see that happen. find out monday. >> thanks. coming up, a final countdown in the jobs report. data released at 8:30 a.m. eastern time. full coverage from our panel. first, new york governor kathy hochul adjust as tax increase on the city to fill a billion dollar funding gap after the pricing plan is in the offing. reaction from new york city president and ceo up next. sts..

who wants to come see the future?! get your business online in minutes with godaddy airo

box." new york governor kathy hochul halting the congested -- well, the planned congested pricing plan leaving a $1 billion funding gap on the table, and one possible idea that may very

well become on the table increased revenue, taxing new york city businesses. here to weigh in, partnership for new york city president and ceo. good morning to you. so here we are. first of all, let's talk about new york city businesses in general. you were in favor of the congestion pricing plan or not? >> we have supported the congestion pricing plan for the last 20 years. we are, we were hoping to become the first city in america to institute a congestion relief zone around our central business district, which is the source of a lot of gridlock. we figure it costs us $20 billion a year in lost productivity, time, fuel costs, et cetera. >> so help us, then, understand this, though. because the flip side of this is that the governor politically and others are saying, look if we have congestion pricing we think actually bad for business.

bring less business to the city? >> we did -- we disagree. in every city around the world where they've put in congestion pricing whether london, stockholm, singapore, et cetera, there's an opposition going in, and then when people see the results they're thrilled. because your cost of doing business goes down substantially, and you can get around. you can keep appointments. you can have cleaner environment. cleaner air. so the quality of life is much better after congestion pricing. >> let me ask you this, and i don't fknow if becky wants to jump on on this or not. the cost of, ploems coming from new jersey, for example, $10, equivalent of $10 extra a day. what it turns into? >> correct. >> who should bear that cost and then if you -- put your employees aside. there's a separate issue of just

who's coming into the city to go see a broadway show or do other things on the weekends? >> so about 3% of the commuters in to the city drive their cars. it's a very small number, and they tend to be higher paid people or government employees who have parking placards and don't have to the pay the $50 a day to park in manhattan. a very small group of people. most people ride public transit. whether commuter rails, subways, express buses into the city, and that's how they get here, and what we are looking for is funding to support the best possible transit ride. get people out of cars and on to public transit. >> i think part of the big problem is looking at the numbers of people who are not paying the fares on the buses and subway system. there's i guess last year 45% of people on the buses refused to pay. 13% were jumping the turnstiles

and not paying on the subways that throwed a $690 million hole in the budget. why not fix that problem before you ask people who don't even use the system to pay for it? >> to be clear, congestion pricing passed in 2019 and it's taken us four years to get through the federal environmental and approval process and get the plans in place. the fare evasion spiked after the pandemic. a period where buses were free and people got used to that. it's very hard to enforce on an individual bus, individual b buses. >> gotten worse with time. if you're complaining a hole, a $700 million hole from people actually not usings system? >> absolutely. we staffed the mta task force to figurous a solution to fare evasion and that's being put in place right now and a series of things. one is obviously police at the

turnstiles monitoring it. also new equipment. it takes time to get that in. top priority, you're absolutely right. we've got to stop the hemorrhage of funds from fare evasion and that is under way. but at the same time that is not going to pay for the capital program that this year it's, of this five-year plan. current one is $50 billion. congestion pricing tolls are going to pick up $15 billion of that. >> oh, my god. already spent the money we don't have jet what you're telling me? that we're assuming the congestion pricing was going to go in. so we already -- it's a -- >> congestion price hag been the law since 2019. yes. we were assuming that money would go in. we're now looking at -- >> oh, my god. >> and we believe it will go in. unfortunately, the politics around congestion pricing are pretty complicated. cities around the world, once

it's in, population recognizes -- >> talk about the politics. politics are ugly. who do you think is the prime movinger in this, and how are you going to convince them otherwise if in fact you believe your position needs to stand and win the day? >> well, i argue on substance. that we have money -- you know, that we can save a lot of money by reducing traffic. we can improve our air quality. we can improve the environment. we can improve public health. reduce asthma rates. a lot of reasons for reducing discretionary traffic coming in to the city, which is what this would do and to get people on transit. at the same time we can invest in better transportation -- >> i appreciate that. if you were to put up a whiteboard and say here are the top ten people on the other side this debate. by the way at the moment appear to be winning. what do you say to the governor and people who clearly have her ear? >> i say, let's get through, clearly the process.

it's one -- we had commuter tax back in the day. you may recall, andrew. we got rid of it more than 15 years ago, because the suburban democratic seats were up for grabs in the legislature. so we got rid of it. it was a political issue. we got rid of the commuter tax so people didn't have to pay a tax to come in and work in the city. even though a third of the people who work here live outside the city. this is the same kind of situation. it is a suburban backlash and it's kearns about candidates, particularly democratic candidates, in the suburbs and are we going to keep, deal with that? but the politics of it are chronic. there's not a lot we can do about that from the business side. what we're trying to do is say here are the benefits. they can put on a new tax to fill the gap in the, the funding gap, but we won't get the

reduced congestion, and we've taken our streets and we've put restaurants in the streets during the pandemic. we have more bike lanes because everybody's biking. we've got more bus lanes. we're actually creating smaller street space. so congestion is getting worse. we are in gridlock in the city. >> restaurants are about to go away i think, this year. temporary restaurants and a lot of restaurant owners say they can't afford to put those things up and down. those will probably go way. >> they're not going away. they said we have to be registered. so they'd be fewer numbers and they'll have to pay for them. >> do you think the governor is going to change her mind after the election? that this is a temporary hold because she wants to hold on to the seats for the election and will change her mind early next year, soon as the election's over? >> the governor has said her concern is we're getting it right and not doing anything to damage recovery of the manhattan economy. our position is we think the manhattan economy is in good shape, but we would be in a lot better shape if we reduced the

traffic gridlock. >> it's not going anywhere. we'll continue to talk about it. appreciate you joining us this morning. thank you. >> thanks, andrew. all right. inching closer to the releefts mreleefts -- release of the may jobs report. waiting for that number. not much of anything. nasdaq up by 19. got the jobs report in less than ghmites. "sawk box" will be right back. n! where's the ball? -anybody see it? oh wait, there it is! -back into play and... aw no, it's in the water. wait a minute... -alligator. are you kidding me? you got to be kidding me. rolling towards the cup, and it's in the hole! what an impossible shot brought to you by comcast business.

are you interested in safeguarding your investments with gold? alamos gold is a growing canadian gold producer with a long track record of outperformance. alamos gold. invest with us. our growth sets us apart. the all new godaddy airo helps you get your business online in minutes with the power of ai... ...with a perfect name, a great logo, and a beautiful website. just start with a domain, a few clicks, and you're in business. make now the future at godaddy.com/airo

we're about four and a half minutes away from the may jobs report. instant reaction at 8:30 a.m. eastern time.

your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

we are just moments i way from the may employment report.

cio is with us and from the heritage foundation, and a senior economist at the economic policy institute and very own steve liesman and rick santelli. steve, give us expectations what people should look for from this number. >> 190, 3939. 190 payroll, 3939 wages, 190 looks still a strong number but up from the prior month. but still 50,000 below the three-month average. it does suggest there's cooling. the high frequency data i follow doesn't show much weakness in the job market. >> up 0.3% for the month. >> the month over month. yeah. still okay. still under 4% of the year over year. >> looking now at a ten-year treasury. basically flat this morning. slight increase with equities futures at this point. ten year yielding 428, 4289.

so a little below 4.3%. we'll see if the trend continues as we get these numbers, which have been a biggy. counting down all week because it is jobs week in america. just seconds away from that may employment report. the futures have been a little higher. ahead of that. you can see dow futures up by 27. rick santelli is standing by. take it away. >> yes. it's the big jobs, jobs, jobs report! change in non-farm payrolls stronger than expected. 272,000. 272,000. and if we look at revisions over the last couple of months, we lose 15k. 15,000. now, let's go through is all. shall we? if you look at the unemployment rate for the first time since january of '22, it hit 4%. yes. 4%. look at month over month earnings, well, month over month is stronger than expected.

up 0.4%. up 0.4%. why is that fortimportant? juiciest since beginning of the year up half of 1%. highest since march of '22. we're moving back up a bit. now, if we go for month over month to year over year, also stronger than expected. 4.1%. that equals march, to find out go to february when it was 4.3. started at 4.4. weekly hours 34.3 exactly expected exactly like the rearview mirror. labor force participation rate actually moving down. 62.5. recent high water mark was 62.7. that was last month. that was the best going back to november of last year. but this number at 62.5 equals february. to find a lower number you have

to go all the way back to january of last year and finally what we call u6or under employment rate versus u3, the one we talk about which just 4%. remained 7.4% where it was last month, but that is the highest level since nov of '21. we see interest rates went up and for good reason. stronger jobs. definitely stronger on the hours. the unemployment -- the unemployment rate, though, moving higher. i would have thought potentially would have been strong, but it doesn't seem to be able to push back the tidal wave of what wages seem to be doing, and job creation. i really want to quickly point out one thing here. when you look at interest rates and you read the papers today or your websites, they talk about the ecb after easing, expanding the difference between our yields. that's not true. right now before this number tens minus booms hovering just above 170.

five-month low. closest they've been, meaning, for all of 2024. back to the panel and you, becky. >> just moves 11 basis points on the ten year. at 440 now. >> yes, we are. 4 -- yeah. 440. right now. just to put a face on this, we're still down ten basis points on the week. we closed last week at 450. >> wow. wow! okay. puts it in context. rick, stay there. a lot more to get to with our panel. steve liesman, why don't you weigh in on what you're seeing and what you're seeing with the market's reaction, steve? >> three areas stood ot tut to . health care up 68,000. lever hospitality up 42,000. thought we were done. right strong, then dropped off. we expected government to come back. low in the prior month. expected a rebound. 43,000. a lot on the local level. participation rate is -- finding

the high unemployment rate. employee service industry down by 400,000 household survey. unemployment rising. two separate survey, becky what we have here. leave it there, except to say that quickly on the fed fund futures, looking at 53% probability. 52 -- declining as i'm talking for september rate cut. july, remember talked about somebody taking that big bet? up 22%? now down to 9%. all that going way. probability of a rate cut declining. just not getting the weakness. what happens should be celebrating, but not if you're -- >> we don't have the stag. stagflation. >> no. >> i still don't understand why the fed keeps saying risks of symmetric on the two mandates. where is the risk for -- why are they worried about a slowdown? you know, too bad it went to 4%, because it looks like unemployment's going up but it's

really not. >> correct you, joe. english major in me talking. they say risks are coming into better balance. >> hmm. >> which is also different from saying the risks are symmetric. >> you believe risks of being too tight are as much as the risk of inflation coming back? >> i still think the fed could cut. i think lagarde showed the way. a limited cut. extremely restricted and cut off the top. >> 270, gamestop? where do you see things cooling in the economy? >> i'm not including gamestop in that analysis. roaring kitty is not one of my favorite forecasters. >> nvidia and the nasdaq at an all-time high. >> a.i. boom why should the government and fed stop it? >> everybody's else is making money. >> that is true. >> bring in the panel to discuss more on this. elise what do you think on this?

not much reason for the fed to have a rate cut here, and that's certainly what the market says, too. >> yeah. i think this is a pretty strong report. it's on top of many strong reports we've seen. payroll growth obviously came in a bit higher than people expected. in some ways looking at a tale of two surveyors. household survey noticeably weaker. that can happen. we have to pay more attention to the payroll survey. even with household weaker and unemployment ticked up slightly. 4.0%. still at or below that 30 months in a row. still quite a strong report here. even on that side. even with some of the weakness showing there. >> yeah. e.j., your thoughts? >> the reason the unemployment rate is so low, because there's over 5 million missing workers who don't have a job, but aren't being counted as unemployed. according to bls' own figures. household survey began a couple

years ago and continued to now. we see this massive divergence between the two surveys. survey of businesses and survey of households. a lot has to do whip people taking multiple jobs, but seems something seriously wrong with the bls's birth/death model which continues to add jobs which frankly aren't there. look at quarterly census and see that last year about a quarter of all the jobs we thought were added never existed. and now estimates from bloomberg as well as the philadelphia federal reserve bank confirmed that. >> are you questioning the strength of the economy overall, then? >> the labor market especially. absolutely. if you believe the jolts numbers. there's some reason whether or not you should, because the response rate to that particular survey is so low, but jolts show that hiring slowed significantly. it has been on a downward trend for a couple of years now. it is below the pre-pandemic trend. so there definitely seems to be weakness in the labor market.

>> e.j., you're from the heritage foundation. am i hearing right? you think there's cause for a rate cut? >> no, no. not at all. because when you cut rates you're going to increase inflationary pressures in the economy. there is still much too much inflation. a lot of that has to do with the fiscal side, however, because at this point fiscal and monetary policy are essentially at loggerheads, but no reason why they should cut rates. inflation needs to be brought down much lower than it is today. >> okay. what you see with this report tells you what about -- does it change anything in terms of your opinion and what you're seeing? or you just don't believe the numbers necessarily? >> well, it's not that you can't believe the numbers. it's that the numbers are conflicting. it's a question of, which data do you think is more accurate at this point? and i think there's a good reason why polling on the economy is not very good these days. it's because it does not reflect

the, quote/unquote, official headline numbers. soon as you delve deeper, then the headline numbers in this report, you know, you begin to notice sdbrep discrepancies. this can't both are true. >> do you aggrieve with joe's take, this is the market saying, uh-oh. we won't get our fix from the fed, and that's a bad thing? >> investors are going to take off their party hats today for good reason, because there has been two factors driving this rally recently. that's tech stocks and the view that the economy is getting softer. today's number, of course, negates all that. protects stocks to continue to outperform. we need to see moderating economic data. some image of rate cuts priced back in. we were seeing before today and now staring in the face, two data points next week. cpi and f1c meeting.

bringing in bad view, economy's hot. inflation sticky. continue from here. rate cuts pushed more and more out. how does this end and will cause confusion for the markets, expect for volatility and today people won't like this hot payroll number. >> only thing, market expected six rate cuts beginning of the year and managed pretty well without getting any of them. is this a temporary setback and look again where earnings stand? look at the spending coming in both from the government and from the big tech ecocompanies spending on this a.i. boost? >> that's a good point. came into this year expecting six to seven rate cuts. down to one to two. market has been fine with that because first quarter earnings were very strong. 80% of companies beat consensus. again, driven by technology stocks. two reasons. one, a.i. here to stay, but second tech stocks want to see a slower economy, some sign of rate cuts coming towards them. that is good for the sector

overall. seen it with a.i. working well. look at softwell companies. underperforming year-to-date. issues there and other areas of technology showing weakness. in a narrow market we need this continuing catalyst of artificial intelligence to continue that's going to overcome everything else. >> elise what rick brought up. mentioned idea the ecb cut rates yesterday. these numbers do not put us to getting to the same point so that we'd prove in alliance. is that a problem? >> i think one of the things he mentioned, more weakness than the data suggests. i think that you have to be clear with the data. that the labor market is strong. yes, there is some weakness with the household survey but mentioned jobs survey. saw it this week. labor turnover survey. there you see there has been some coming down in terms of job openings and hires. a peak when workers were

quitting in search of better opportunities. many found them and now hiring looksalities bit more like it did in 2017 and 2018. and now we are still continuing to see that sort of hiring and we saw those numbers today come out. that is a very strong number in terms of payroll survey and down on the -- misplaced. payroll survave benchmarked every year to tax records. very much the gold standard what we look at when weor market is >> steve what do you think? >> i think -- showed this earlier during the 7:00 hour. the street has been wrong about jobs for a very long time. i think that they don't understand the hiring dynamic going on and i think there's an immigration piece in this. there are bodies available, and there's work for them to do. whether or not they're here legally or not is a different story. it's that's the political story. the economic story is there's work for them. being put to work. i did not look at immigration --

the non- -- the non-native hiring in this survey yet but i'm sure it's pretty healthy. i think that the idea that the jobs numbers are going to weaken in the summer is now, you know, pretty big question right now. still i think we're not seeing much inflationary impulse from this, because we're seeing we have more or less the people to fill the jobs. right? if the unemployment rate goes up that is what the household survey is actually good for. it's the number of bodies available for the jobs, for calculating the unemployment rate, then we seem to have the people to fill it. there's not much of an inflationary impulse from it. >> although, e.j., 0.4% month over month better than 0.3% anticipated looking at year over year 0.2 higher at 4.1%. is that a concern just on the inflationary side of things? >> no. not a concern from the standpoint it's not the causes

of inflation. we have this fallacious idea somehow increasing wages will cause prices to rise. it's exactly the opposite. it's inflation which causes both wages and prices to rise. unfortunately what we're seeing from the fed is more inflationary pressure. they are continuing to allow bank reserves to rise. that's actually been the case since the very beginning of january 2023. as that continues to trend upward we continue to build the money supply and so that's a big reason why. we continue to have so many price increases and widespread price increases throughout the economy. it's not just the headline figures, which are going up. you can take out outliers looking at things like media and trimmed meme. cpi as well as pce and you find widespread price increases. >> rick, what do you boys and girls in chicago want to dot? do they want the fed to hike, to hold in place here?

what's the, this shouting going on there in chicago? >> you know, most of the traders i talk to have a couple of things in common. they don't trust the jobs numbers for a variety of reasons. they think the birth/death model, adding too many jobs, seasonal say judgment flaws. they believe that many of the jobs created are part-time. the biggest anecdotal piece of level on the labor metrics not correct are job openings. anecdotally, headhunter, a couple relatives out looking for jobs. what i hear over the last nine, ten months, many jobs advertised as open positions aren't really open positions. a lot of variables here and one other thing we probably ought to point out. that is -- when you consider wages, and i like what e.j. said. there's a feedback. airline industry.

18% potential rise in wages all fuels each other. consider that pre-covid the 4.1% year over year number was 3.5 in march of '20. 3% in feb of '207 and 3.1% in jan of '20. wages are probably the real accurate picture here. i think much of the other data, i really continue to question and i think that would be the position in chicago. one other thing. two-year notes basically tested unchanged on the week near 4.87. 10s, of course, nine basis points under water on the week. 430 considered good support. went a bit below that. i think interest rates will be much firmer. street's the wrong way right now on the -- >> the futures area, steve? >> say again? >> are the -- >> not zero. before going to break 8.9% looking at for july.

54, 55 for september. 68 for november. but they put it up right away. >> you think that's right? and you think that's right? do you think we can cut? >> i think that lagarde showed the way for a tweak. >> lagarde showed -- that's the tail wagging the dog. >> i think she made a mistake. >> it's possible. i said it's possible. you can take some off the top is what i think. restrictive right here and you can take some off the top. that's all. all right, folks. thank you to you all. we appreciate it. coming up -- roger tries to agree with you but he doesn't. never says it, because he's nice to his former colleagues. former fed chair roger ferguson. what he thinksbo t authe jobs report and what it could mean 20 to the fed. "squawk box" will be right back.

♪(string section building up)♪ dana-farber's momentum of discovery has changed cancer treatment everywhere. people aren't just living with cancer. they're living beyond it. ♪(orchestral music)♪ ♪(soft jingle)♪ [crowd chanting] they ignored your potential, and mocked your ambition. but it's not the critic who counts. with every swing and block, your game plan never changed. ♪♪ some still call it luck. let them. because you know what it's always been. inevitable. ♪♪ ♪♪

welcome back to "squawk box." the monthly government employment report showing a gain of 272,000 for the month of may, much stronger than the 190,000 expected. the unemployment rate ticking up to 4%. the futures right now on the back of that news, dow down about 150 points, nasdaq down about 70 points, the s&p 500 down about 22 points. and i think we're all focused on how the fed is going to read this, and so who are we going to talk to? the guy who has read it right. >> let's get more reaction to the jobs report. joining us, roger ferguson, former fed vice chairman, as well as a cnbc contributor. i asked where the fed futures were and i guess july went to 8%. but still like 50 and 60 before the end of the year likelihood. so, i mean, i don't know, we're still on track for cuts. it's confounding to me. you're always nice, as i said, to your former colleagues. does it make sense to cut in

2024? >> based on the data i've seen thus far, i would say probably not. more data to come, obviously. but, look, the jobs report this morning showed the economy is in good shape, creating more jobs than expected. some of the disinflationary pressures come from the supply chain seem to be behind us. i think it's definitely a wait-and-see movement and i wouldn't signal too much eagerness to cut because i'm not sure the numbers are going to allow that in the near future. >> the questions we always ask ourselves, do you have a high degree of confidence that where the fed is right now is slowing the economy and is restrictive? >> i don't have a high degree. it's clearly somewhat restrictive. i've been surprised at how much resilience the economy has shown given how aggressive the fed has been. without getting too technical, there are debates among policymakers, how restrictive

are we, what is this elusive thing, the neutral rate? i think the data, they'll certainly stay where they are. talk of cuts, premature. a few have suggested the possibility of a hike. that doesn't seem likely right now, but i wouldn't say it's impossible as we get toward the end of the year. >> i just think if the fed has a natural tendency to underestimate the staying power of inflation. on the way in, we saw the transit authority is still taking heat for that. if that's sort of their bias, to be leaning that inflation is not a problem, why wouldn't we think right now that they could underestimate the staying power or the difficulty of the last mile of getting to 2%? it would be the same mistake. it wouldn't be surprising. >> look, i think -- two things, i think they learned a lesson from being a little too

optimistic early on. we heard them speaking very firmly in an anti-inflation mode, which i thought was the right tone. so let's wait and see. now, also recognize at the end of the year when people were most in the cut camp, there was certainly some sign that disinflation was moving very quickly. the beginning of the year, things changed. for a data-dependent fed, i think right now the data do not support this cut talk, and i think it would be wise to lean against that expectation. >> all right. i guess -- i was going to mention some things like nvidia and nasdaq and gamestop and bitcoin. i'm just looking for where we see signs of, i don't know, non exuberance. you remember irrational

exuberance. i think we're more than neutral in terms of exuberance right now. >> look, i think the markets are, as you point out, excited about new technologies, as i think they should be. so this ai revolution is creating brand new opportunities for a number of companies, as we've seen, to make revenue, and, frankly, to change interactions in a way that might cut costs. i understand the excitement about a new technology and i think it's appropriately priced in, with more to come. i think we see other elements of strength in the economy as well. the consumer is showing resilience, and first quarter earnings were pretty good. so i can understand some of this excitement, as you call it. i think where themarket is wrong and has been consistently wrong is the expectation of another jolt, so to speak, of interest rate cuts from the fed. started with the expectation of six cuts, down now to two, and i think even that may look a

little optimistic. so time will tell, but i would say at this stage i would not encourage an expectation for cuts right now. >> thanks. did you have a donut yet today? >> it's national donut day. we'll send you one. >> thank you very much. >> four. i'm licking my lips. >> that's just what you need, sugar.

it's your time to cash in. so don't just play. stay... at northern california's premier casino resort. book your getaway now at cachecreek.com. it's your time to cash in. so don't just play. stay... at northern california's premier casino resort. book your getaway now at cachecreek.com.

all right, everybody, let's get over to dom chu. he's been watching gamestop. >> the latest, what we have is a stock that's been volatile, a lot of catalysts out this morning, including a filing showing that they are going to look to sell possibly up to 75 million shares of stock in a secondary offering. this comes, also, as the surprise earnings report gets dropped, about four days early for gamestop shares, showing a steeper revenue drop, a narrower loss than expected, and then all of that coming as roaring kitty, the trader keith gill, the original meme stock trader, gets ready to host his first youtube stream with regard to his views on the market, the first time in about three years. shares down 20% right now. a lot to get to. i'll send things back over to

you. >> thank you for that. i hope you get a donut on this national donut day. let's take a final check on the markets after getting what was a much stronger employment report than we had expected. the dow looking like it would open down 146 points, the nasdaq opening off 76 points, the s&p 500 off 23 points. make sure you get a donut if you do nothing else today. we will see you on monday. sugared up or sugar free. sidewalk on-- "squawk on the street" begins now. good friday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer. too darn hot. jobs number for may 272,000, defies expectations of 185,000. futures ar