trend. lot of companies are reinstating their dividend. we'll talk more about that in the next half hour. steve, break down the numbers. we did see the work week climb a little bit. >> yeah. and it was a very confusing report so to understand the confusion what we're going to do is try to understand the two different surveys. one measures the unemployment rate. the other measures payrolls. let's go through what each one is and what they say. the unemployment rate, the household survey. that showed employment rising to 540,000, unemployment, the number of unemployed declining by 430,000. this is a different survey. it's a survey of 50,000 households set to capture small businesses better than the payroll survey the one that wall street usually focuses on. it shows employment down 20,000. it had revisions of about a minus 100,000 over the past three months. this measures employment as reported by 300,000 businesses. so what's the right answer? did we gain jobs, lose jobs? yes. one survey says we did.

one says we didn't. goods producing declined 60,000. with that 75,000 construction decline in it, financial activities down 16,000 and hospitality down 14,000. these are the job losers. now let's look at the job gainers which there actually were. manufacturing, look at that. up 11,000. services in total up 40,000. and retail gained as temporary help continues to point the way for a lot of economists to positive job growth in the months ahead. now, let's look at what we do every month at the real unemployment rate. this is the total measure of discouraged workers, people working part-time for economic reasons and the unemployed. tick down rather markedly to 16.5%. it had been as high as 17.4%. so that's also come down quite markedly if this household survey is to be believed. as bob said, the work week went up, which suggests to mark zandy positive 3% growth in the fourth quarter as did some of the overtime out there so that what we hear right now, what we see

right now is that employers are working their existing work force harder but not necessarily employing new people. erin? >> steve, a quick question for you on this. i know there are so many levels of detail we'll talk about throughout the day but on the federal government side of things i know there was obviously a plus sign there. that's fine. although in the long term we'd rather be private sector jobs. but obviously that was helped out by the census. so we know we're expecting a couple million, maybe temporary jobs because of the census. good in the short term. but has anyone done the analysis of sort of if you take out census this year, what happens? >> not yet, erin. my understanding is that the major census effect will be next month and march with the understanding that it's temporary. some going into the number thought we might have as many as 20,000 plus jobs from the census in this report. i will tell you that on net government hiring was minus 8,000 and i haven't broken that down but i'm guessing that's state and local firings is what we've seen a lot of month after month but i will get you that

number. i guess i'm back on the 10:00 hour to talk about it and will break down all the government hiring. >> thank you, steve. i was just curious. i know the census will become more and more important. thanks to steve. >> that's right. >> and steve of course is going to be with us at 10:00 with more on that. the white house will have its first reaction to the jobs report also here on "squawk on the street" in just about 20 minutes' time. we are going to be getting to the commodities trade as well as the tech trade in just a couple moments but first we want to get to our other big story, an historic apology from toyota and phil lebeau is live with more on that from park ridge, illinois. >> this is what people have been waiting for over the last two weeks since toyota recalled 2.3 million vehicles they wanted to hear from akio toyoda the ceo of the company. this morning we finally did hear from him. about two hours ago he held a press conference in japan. quite a scene as reporters were taking his picture as he walked in. he then apologized and basically for the worldwide recalls and the concerns that have been issued about the quality and safety of totonyota vehicles.

he says he regrets causing worries for toyota's customers. >> it is safety but we are trying to increase it. so this kind of procedure is good for the customers so please believe me, we always -- customer first is first priority. >> so what does his apology mean? well, a couple other things were said today. first of all the company is going to cooperate fully with all u.s. investigations including congressional hearings next week. toyota is going to set up outside quality control checkers, people who come in and look at what's happening with the company. part of setting up a quality control committee. this comes as toyota dealers around the country are beginning the big fix on those sticky gas pedals. 75,000 dollar payments, up to that amount is being sent to some of the larger dealers in the country as they work on these gas pedals.

for toyota dealers, this money is designed to help ease the financial burden of the recall and the fix. there's about 1200 u.s. dealers and they're all starting to work on these cars. they're also realizing it's slower in the showroom and that's why toyota is considering a marketing effort to win back customers. toyota estimates that it has lost 20,000 sales due to the recall, a recall that could cost the company $2 billion. mark? pretty amazing scene this morning in japan with mr. toyota holding a lengthy press conference, basically saying, we goofed up and we're going to make good on everything that's gone wrong. >> all right. thank you, phil lebeau. futures reacting to a lot of news but once again we are above fair value although we've lost a little ground in the last five or six minutes but we are still about a point above fair value, indicating a modestly higher open, which is a lot better than right after the jobs number when it suddenly plunged to minus, i

think minus 9 or 10 was the worst i saw. >> yeah. >> let's check out the rest of the markets starting at the nasdaq and scott wapner. >> okay, mark. thanks so much. it's certainly what we are seeing here at nasdaq looking at a positive open now. a nice turn-around after the jobs number. the nasdaq could certainly use it as technology has been beaten up lately. nasdaq down 8.5% since the mid january highs and most large cap technology stocks showing modest gains in the premarket. we're also focusing on a stock like sienna this morning downgraded atd barclays. dollar tree is going to be active trading today. it was downgraded at jp morgan that firm saying many of the positive catalysts for the company and the stock are now played out. urban outfitters was added to the top picks live list over at citi. we'll keep an eye on that as well. the target there, 42 bucks. sharon epperson at the nymex. >> reporter: targets will be very key in the technical trading going on in the oil sector. we are looking at oil prices right now higher after the jobs

report. we're above $73 a barrel but a lot of the traders i talked to here on the floor and on desks are very skeptical as to whether this little rally will last as folks continue to digest these jobs numbers. look at 72.45 on the down side, or 72.46. that was the overnight low. and keep in mind we did see the biggest one day decline since july yesterday. and some folks are saying there still may be more to go. gold prices meanwhile basically unchanged here. we did reach that 10.50 level on gold here, rick, and a lot of the traders again looking at the down side perhaps for gold. over to you in chicago. >> thank you very much, sharon. you know, everybody is trying to decipher these numbers. people are handing me tables. it's not as easy as it looks. household survey, establishment survey, but i will read you some quotes. if you look at table a 1 in the bls schedule all these numbers, they say without benchmark revisions the unemployment rate as represented by 9.7 would be 10.6. it was also annual benchmark revisions, we were all talking

about, that ended for the fiscal year march of '09. so a bit stale but still a whole year's worth and those were taking away 900,000 more jobs. so it's not as easy as it looks. that explains according to many traders why you've had so much volatility but net-net we still see interest rates pretty close to unchanged. now looking once again to see what the overseas situation will look like going in front of the weekend. now let's hop across the pond to what has been the epicenter of news these days. hi, guy johnson. >> hey, rick santelli. yeah. we've got a lot to talk about on our side of the pond as well. the rally beginning to run out of steam here in europe. we have a sea of red across the continent. stocks took a big hit yesterday. the main markets down 2 to 2.5%. similar numbers reported today. paris is still down today again another 2.33%. frankfurt and london both down a percent. we did see a reaction post the number in the euro. let me roll you through and show you what happened there.

we were almost positive on the euro versus the dollar for the day. we're now beginning to move back off that 13690. the story remains very much what is happening in the periphery of europe. the talk here in europe today is that we should all watch out for next thursday's meeting of the european leadership. they're going to be getting together in brussels. talk of the deal being done tlchlt the bond spreads are once again widening out. mark haines have a great weekend and enjoy the super bowl. >> thank you, sir. we have a deal and david faber has details, next. >> also, earnings central. several market moving names on today's list again, mark, the poor earnings relegated to the bottom of the barrel but not here. investors have a lot on their minds. we've got the problems with the p.i.i.g.s., the jobs report which is truly a conundrum. what do you think? we'll see next. here's your question, mark. 9% unemployment or dow 9,000?

>> got tongue about that one. >> you do. let us know. squawk on the street.cnbc.com. which would you choose? i know there are a lot of variables. let us know bottom line. would you like a pony ? yeah. would you like a pony ? yeah ! ( cluck, cluck, cluck ) oh, wowww ! that's fun ! you didn't say i could have a real one. well, you didn't ask. even kids know when it's wrong to hold out on somebody.

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welcome back. there has not been much m & a to speak of nor have we seen a lot of action in terms of proxy season because we're at that time of year where if you want to challenge a board of

directors to do something at a company, you got to do it soon. file that slate. so this morning we have a little action on both fronts or certainly on the m & a front. we'll see whether we get it on the proxy front. i'm talking about air products' decision to launch i'm going to call it a hostile bid for air gas, $60 a share cash. they've been talking for a while or for the last four months. air products has been making overtures and offers to air gas and air gas has been telling them to get the hell away from them. that's where they are. they decided last night, well, all right. we're going for it. you know, i've been sort of given there's nothing else going on trying to get wind of this for sometime. i was aware of some of the correspondence, not unfortunately aware of which companies were doing it. it has been a back and forth and air products deciding to make that move. let's give you a little detail on the deal here. 5.1 billion is what it amounts to for the equity and they will also assume 1.9 billion of debt. a conference call going on right now between air products

management and the analysts and some shareholders there and those that want to follow this thing. so it's about a $7 billion deal, $5.1 billion total. jp morgan providing the financing. as fort synergies talking as much as $250 million in synergies. while they're in similar businesses they're not in the same business, did not go into any great detail. air products had jettisoned some units not that long ago that competed in some ways but they still may need to do further divesty churs to make sure the antitrust review isn't onerous. let's give you a timeline. they came in october and said, here. we'll give you 0.7296 for each air gas share. no thank you. they came back. how about 62, half cash, half stock? they said no thank you. and last night they said okay. we'll do $60 all cash. can't make any questions about anything in terms of the performance of our stock. early assessments from the

analysts' community, don't have much to share from you. pick this one. saying the offer values the company at just eight times ebitda. 15.5 times eps based on calendar, 11 results. they say, quote, we think air products will either need to raise its offer or competing friendly offers are likely to be made by either air liquid or lind. i don't know if i'm pronouncing that correctly. they're both those foreigners you know but also the big players in this. as for responses in the past because we haven't gotten one yet from air gas to the latest offer given that it went out last night, seemed to hit the press before it even came into the mail box of air gas. they did say on january 4th they believe the combination of the two companies could destroy rather than create value, that you under estimate the seriousness of your advisers' conflicts and thaur characterization of my one and this is the chairman ceo founder with you is inaccurate and misleading. by the way to that point of

adviser conflicts, the lawyers to air products, jp morgan the bankers, they say they've been our lawyers and bank earns know stuff they shouldn't know to help you. there's the fight. maybe we can get these guys to come on and duke it out. wouldn't that be nice? put them in a wrestling pit. fully committed financing from jp morgan has already been secured by air products and they do say they're prepared to make the appropriate divestitures to get antitrust. they're going to move quickly from what i hear from people close to the situation. so quickly in fact that they might be in a situation where were they to launch a proxy fight it's a staggered board. nonetheless, an august meeting right now. they want to put themselves in a position where were it to actually go to a shareholder vote they'd be able to say we can get this deal done immediately. finally, they did file a complaint in delaware. they're trying to get airgas's directors to form a special committee of independent directors. they want to enjoin airgas from

engaging in any action or inaction that improperly impedes the deal. because they say, hey. mcklausen is not acting as he should. he is too emotional and doesn't want to sell. tyler mathison, what do you got at earnings central. >> lots of air gas coming out of here. let me tell you. the 45-second edition of earnings central. let's go first to number one. aetna has the swine flu. the bid/ask down big time there. there's the 4:00 p.m. price. really a disappointing earnings number there. and here's the big one. medical cost ratio the amount of premiums used to pay for medical care up to 85% from 81%. tyson, keep plucking that chicken. there you go. eps 42 cents a share versus 18 cents and there you can see again that the bid/ask spread is pretty wide there. that company 42 cents versus 18 cents. revenues above line there. beef volume sales up, chicken volume up. let's go to simon properties there, basically a so-sorority as we look at simon, the big

reap there and it looks to open roughly level. profit down 41%. estimates there 2010 adjusted funds 5.87 a share versus 5.59 estimate. things may be looking better there. that's your earnings haiku for this hour. back to you all. >> thank you very much, sir. s&p right now minus 270. now 3. jumping around a little bit. we are now below fair value so now we're looking at a slightly lower open at the bell. coming up next, we're going to the street. >> and later problems in europe could hit. plus a first look at how the fed and treasury department are seeing those problems. by the way, mark, 488 of the 500 stocks in the s&p were down yesterday. what was the best performer? you can't cheat. we'll tell you in a minute.

time to get the word on the street, on the floor, dr. gordon charlop managing director of rosenblatt securities, cnbc market analyst. all right, dr. know. we've had about a 5% move down. where do we go from here? >> well, mark, first off, i'm sorry to see that you couldn't join me down on the floor. i hope you're feeling well. a lot of emotion in the building yesterday particularly yesterday afternoon. but emotion is what it's all about. with that i'd like to say happy birthday to anna and ryan. look, the numbers came out, at least they sort of stemmed the negativity that was permeating through from yesterday. we have our eyes focused on sort of macro events at this point. you have to look at some of the issues, some of the sovereign nations that seem to be following sort of the lehman to

baer to kwan tate if easing process. however, in those countries it could be harder because of their socialism and the way the unions are embedded there. so from an opportunity cost perspective, mark, i still think corporate treasu i'm sorry corporate bonds and corporate equities are still the place to be. >> all right. wait a minute. because we're out of time. are we going up from here or down? >> we still have some resistance here but again, mark, i said this last week. you got to be cautious. if you're going to look around the world for places to put your money, i think the opportunity cost is still best here in this venue, united states. i think we'll be going up after a little bit of resistance here. that's the way i feel. >> all right, doctor. thank you very much. have a great weekend, gordo. >> you, too, mark. >> final countdown to the opening right after the break. >> the white house first reaction to the jobs number here on "squawk on the street" and

our street poll, what do you think is more likely in 2010, 9% unemployment or dow 9,000? you can't say both. whwhwhwhwhwhh

all right. we are two minutes before the bell. here are the headlines. employers cut 20,000 jobs in january but the unemployment rate hit a five-month low proctor and gamble says one of the biggest fears right now is president obama will stifle corporate growth by imposing taxes on foreign earnings. the futures indicating a slightly lower open. >> don't tax foreign earnings at all? p & g has a problem with that? >> yeah. >> bring them home, should be tax free? hum. >> i don't know. >> we'll get to the bottom of that. it's a little more complicated. we're partially kidding. as we count you down to the opening bell let's bring in our

global product director and good to have you both with us. art, what do you think of this jobs number? the market sold off and then came back a bit, people seem to not be sure how to react. >> i tell you this the consensus estimates for this number for the change in the nonfarm payroll number were pretty wide with the estimates being anywhere from plus a hundred thousand jobs to minus a hundred thousand jobs. in a sense it's not that far out of the realm of consensus. the eye poppingly good number not the unemployment because that's difficult to calculate. it is certainly a good headline number but the change in manufacturing jobs is very important. that was revised up in december. >> right. an increase. >> plus 11. and in january and that's versus a consensus of minus 20. also earnings up in both the year over year and the monthly numbers. i think that's important and it's getting some focus as well. so clearly i think the market is going to be a reflection of what the dollar does and what it does to the commodities market much like we saw yesterday, strong dollar, weak commodity not good for the equity market. >> jack? >> he's absolutely right.

a lot of the story revolves around the dollar. the whole idea of the carry trade. remember i've been saying for the last couple weeks pros are selling into rallies now. they are definitely changing their tone selling into strength, even good news. and this was a bit of a mixed report. the other thing that we want to keep in mind is the fact that there's a lot of worry that's going to hang over the weekend with what's going on in europe. that in itself might add a little pressure and add another day in consumer credit which was absolutely devastating last month at a negative 17 billion is coming out today and we expect another shrinkage from about 8 billion so keep that in mind. that could be another bit of bad news later in the day. >> thank you very much, jack. art? >> here are the opening bells at the big board waste management ticker wmi. and its president, larry o'donnell celebrating his appearance in the premiere of the reality series "undercover boss." at the nasdaq, henry schein and the american dental association marking its give kids a smile

day, providing free dental care to under served children. >> and our market reporters are standing by. we are at 10,007 up four points. bob pisani? >> the nonfarm payroll report was not a disaster. futures were all over the place. we were on the up side as we get into the opening here. revisions, yeah. there were revisions in november and december but oddly they kind of balanced each other out. the work week did climb 0.1 to 33.3. that was a good bit of news. tyson did well. chicken is coming back. beef is coming back. volumes were improved. they beat the earnings by a wide margin. stock just opened up 4%. conway was a real disappointment. remember like ryder, different kinds of spaces in the trucking area but they had very good volumes here, tonnages improving but the pricing is terrible so excess capacity is a real problem in the trucking industry right now. i don't know how that's going to be worked through but it's the main issue. david told you about the air product bid for airgas, $60 cash.

what makes it interesting to me is if this thing goes through, really prax air is going to be the only major player in the industrial gas business. of course we're talking about oxygen, nitrogen, those kinds of businesses. marriott one of many companies that have now reinstated their dividend. there are now 39 companies that have reinstated or increased the dividend since october. how are we looking at the nasdaq? >> decent. we're up just shy of 0.5% here up ten points. boy does this board look different than it did an hour and a half ago. most large cap techs have opened positive. they were all negative, almost all negative. like i said in the premarket. but look. apple is higher as is google and microsoft. cisco, which was the only large cap tech higher yesterday is up another about 3/4 or so percent today. intel is higher as is oracle. take a look at sienna as we continue to watch other technology stocks as well. it is down 1.5% downgraded at barclays. dollar tree is a mover to the downside down 1.5% downgraded at jp morgan.

it was added to the top picks live list over at citi. take a look at shutter fly this morning up almost 13%. the story there, easily beat their earnings and their revenues and also they've projected a loss that was smaller than the street expectations for the coming quarter. let's go to sharon at the nymex. >> a big decline in prices like we did yesterday. the rumors start to fly that some hedge fund must have blown up. there must have been some massive liquidation of some funds somewhere. well, today blue gold, a commodity hedge fund based in london is saying that the rumors that they were responsible for oil price volatility yesterday for yesterday's slide or mass liquidations are false and that business is going on as usual. they're telling reporters that they had nothing to do with the oil price volatility. keep in mind, though, nymex crude futures in the front month, we did see about 500,000 lots traded yesterday, which was the fifth highest volume on record. so a lot of activity in that selloff so a lot of questions as to why this occurred. meanwhile, looking at natural gas prices we are seeing a nice

bump up there in natural gas futures. the blizzard bounce you may want to call it with 24 inches of snow expected to fall in washington, d.c. rick santelli, to you in chicago. >> well, thank you very much, sharon. i'm just trying to keep up on all of the different tables as we all try to handicap exactly how these huge revision losses on one side versus what's going on on the household side reconcile. we all know the unemployment rate dropped but we lost boat loads of jobs on big revisions. so many research analysts are e-mailing me and sending me tables but one thing that jumps out, you know, we learned yesterday a nonseasonally adjusted initial claims were above 3.1 million for the first time ever. reconciling that with a falling unemployment rate is very difficult. what are the markets saying? the curve is steepening. long maturity rates are a little higher than before the number. short maturity is a little lower. fed funds keep rallying, which means there's no tightening being priced in whatsoever.

mark haines, back to you. >> rick santelli, thank you very much, sir. quick check on the markets for you. dow has slipped negative and we are now horrors below 10,000. i guess the more pessimistic of our pundits lately have been saying we could get to dow 9500 in this correction. so anyway, right around 10,000 right now. and the nasdaq is in positive territory as is the s&p. time for the cnbc edge. start with drew. is this a correction, are we headed lower, or is it over? >> no, we're in a correction, mark. this is, you know, technically long overdue and the information coming out of greece revolving around to spain, these are real concerns for the marketplace. as you know, credit spreads on

sovereign debt began to spread and, mark, it's not going to be too long before maybe this fall we start learning maybe our structural deficits are significantly bigger than we've been told they are. so this is going to be the ongoing thing for the rest of the year. economically, okay, we're still in good shape for a good year this year but it's that 2011 problem is what we're going to be talking about from here on out. >> john, you agree? are we entering an era of worry over sovereign debt? >> well, i think it certainly is a worry and there's always those kind of worries out there that can derail a bull market. but i'm in the bullish camp. i think this is more of a correction and it may have a little more to go. i think this is a bull market that's very well supported. we had the imf just came out and increased world growth this year at 3.9%. we have corporate earnings that obviously you know are rising sharply on the back of this surge in productivity, plenty of funding for the bull market, only 600 billion has gone back into the markets from the 1.5

trillion that went out. >> all right. we're running short of time. in that case, john, what would you be looking to pick up during this correction? assuming you're optimistic longer term? >> i really like high quality multinationals. i think they're among the cheapest stocks in the market. and also we like the fact that they can go where the growth is. >> all right. i'm sorry to cut you off. we are almost out of time. drew, same question to you briefly please. >> yeah. we're going to pick up probably, you know, emerging markets here. they've really taken a beating and we're going to keep an eye on the carry trade, watch the dollar relationship to all asset class risk. >> all right. john, drew, thank you very much. have a great weekend. >> thank you. and breaking news right now. the first reaction to the january jobs report from the white house. christina romer is the chair of the economic advisers fort president and is with us now. thanks very much for taking the time to be with us this morning. the jobs report, payrolls still losing jobs but the unemployment

rate ticked down. which number is the one you think matters? >> well, i think the first thing to say is obviously even with the unemployment rate ticking down we do know that the unemployment rate is still 9.#% so we certainly have to acknowledge that the american people are still suffering tremendously at 9.7%. i do think that the drop in the unemployment rate of 0.3% is unquestionably encouraging and something that obviously is something we're looking at. on the payroll employment number you're right. it did go down slightly. i think the important thing there is slightly. if you think back to a year ago, we now know we were losing some 780,000 jobs a year ago january. so that certainly is tremendously smaller. the other thing that i've been struck by is the fact that we're seeing some variation in that number. in fact, manufacturing for the first time in three years is positive. and retail trade. so i think that is a sign that

certainly some sectors we're finally getting the positive job growth. >> the average duration of unemployment actually increased to the broader point about long-term unemployment to more than 30 weeks from just over 29. >> no, that's -- >> what's the reaction to that? >> that certainly is true and that certainly, you know, with some sense we know that. this has been a long, terrible recession. the president has always acknowledged that with the american people. it was a long time, you know, that the crisis was a long time developing and it's going to be a long time digging out of it. and, unfortunately, one consequence of that is a lot of people are saying that unemployment -- staying in unemployment a long time. that's why the actions we've taken to make sure the relief efforts are there to extend unemployment benefits, all of that's been incredibly important. >> with unemployment currently kind of stuck right around the 10% level, is another stimulus in the form of a jobs bill

becoming inevitable? >> i think the president has made it incredibly clear that while the actions that we took last year are a big part of why we are seeing this stablization and this start of recovery that he thinks we do need targeted actions to jump-start job creation. you know, he's done a lot in the last week. he's proposed a tax cut for small businesses, a lending program for community banks and today he is going to be announcing another lending program for small businesses through the small business administration. all of that's important. he has made it very clear he wants legislation on his desk to make sure that we get this unemployment number coming down even faster. >> all right. >> ms. romer, thank you very much. we appreciate you taking the time. christina romer the chair of the council of economic advisers and of course, mark, as we know, the hundred billion dollar jobs thing shall we call it was

included in the budget forecast for this year so they are counting on a hundred billion. >> we'll see if we get it from congress. >> exactly. >> you have to have those guys onboard, those men and women onboard. next the ultimate inflation hedge in commodities corner. >> plus the treasury and feds's first thoughts on the mounting problems in emerging europe. today's street poll. by the way the best performing stock yesterday for the market was abercrombie and fitch up 3.9%.

washington, d.c. declaring a snow emergency in effect now. let's get the latest stormtrack. bill, this is a mother of a storm for that region. >> well put, erin. it looks like it's going to be one for the record books, too. we're looking at potentially getting into second place all

time for the season with our snow in washington. we sit at over 27 inches. should we get two feet of snow it will put us in the 50s. the all time record around 54 inches. what we're looking at right now, snow is a couple hours out from washington. snowing at an inch per hour already in charlottesville, virginia. this snow maker is going to fill in, make a run at philadelphia, get over new york city, but then kind of slide eastward and as it does so, it is not going to deliver a whole lot of snow north of new york city. you go 50 miles north of new york we're not getting any snow. you go 50 miles south on the shore in jersey say seaside heights we could see as much as a foot of snow. the snowfall looks like the middle atlantic. the big dump probably one to two feet and a very historical storm in the d.c./baltimore metro. back to you. >> thanks very much. we appreciate that. mark? prepare yourself. you live in this. >> i'm ready. >> ready and excited. >> my plow is mounted on the truck and i'm ready to go. >> so is mary thompson with breaking news. we do have breaking news

concerning the pay of jamie dimon the ceo of jp morgan chase. in an sec filing the bank saying dimon will receive a bonus package that includes $7.6 million worth of restricted stock, exercisable in two portions one in 2012, 50% and another in 2013. in addition to that he is also receiving stock options of 563,000 plus stock options exercisable over ten years. the exercise price 43.20 slightly above the closing price yesterday of 38.35. dimon will not be receiving a cash bonus for 2009. so of course we've been waiting for this news now of course wall street awaits news on lloyd blankfein's bonus of goldman sachs but jp morgan's ceo jamie dimon receiving a bonus package that includes 7.6 million worth of restricted stock. back to you. >> so 7.6 million of restricted stock and then 560,000 shares? or the shares are currently valued at 560,000 for the

options? i'm sorry. >> 63,000 options as well. >> 63,000. >> so 563,000 options that will be exercised over a ten-year period. >> valued currently at 43.20. >> again, it closed yesterday at 38.35. >> all right. mary thompson, thank you very much. we'll do even more math on that. mary breaking that news. of course the question mark as mary said is lloyd blankfein now is the last one and everyone awaits his number. >> everyone wants to see what his number is, yeah. don't worry, lloyd. we'll be understanding. >> and the commodities corner super bowl edition. if you thought gold was a good inflation hedge try this. a ticket to see the saints take on the colts has an $800 face value, mr. haines. so that's rather steep compared to the first super bowl back in 1967 when a ticket cost $10. gold at the time was $35 an

ounce u today it's about $1,060 an ounce. the super bowl ticket is up 8,000% over 44 years just for face value. i'll take a gander here but i believe that out paces inflation. >> and the first super bowl wasn't sold out. in fact, i think they went something like seven or eight super bowls before it finally sold out. because most people believed that the afc was over matched so they wouldn't bother to go see it. >> interesting. >> and then of course the jets won and then kc won in super bowl iv and slowly it began. >> looks pretty outrageous compared to inflation i have to say. >> yeah. >> not worth it. just one person obviously not a saints fan. >> it wasn't called super bowl until super bowl iii. >> what was it called? afl/nfl championship. >> that's part of the problem. >> yeah. >> next up washington starts reacting to the growing debt threat in europe. >> and later, papa john's and

underarmor get in on the big game. the super bowl. executives for both companies are here talking super bowl business. we're back in two minutes. rrrrrr

welcome back to "squawk on the street." check out the stocks that are moving here today. coach and nordstrom cut to neutral from buy at goldman sachs this morning each down about 3%. they see multiple compression in that group. gap, though, raised to buy from hold at citigroup. it's up 2% on its way to 24. they say the 15% drop since november is a buying opportunity and mastercard is down but at least two firms have come out and said it looks attractive after falling 13% in the past three sessions. it's at a three-month low. mark, back to you. >> thank you very much, matt nesto. erin? >> so mary, these jamie dimon numbers if you look at the options you could get a pay package up to $32 million. >> the way it's been explained to me, erin, is first of all you have restricted stock worth 7.6 million. that's what we told you. if you take a look at his

options according to people close to the company what you want to do on the method is basically divide the current stock price by three and then you multiply it by the number of options. again, 563 million, which gives you basically stock options worth 8.5 million so essentially the bonus for mr. dimon this year or excuse me last year, 16.1 million of restricted stock and stock options. >> okay. so they're going on black shoals so in other words the simple options math, the ones granted by the strike prices, they're saying not fair. >> that's right. so again, 16.1 million when you add together that restricted stock as well as those values, the value of those options that have been granted to mr. dimon. >> so, mark, 16.1 million for jamie dimon. obviously the restricted stock over two years, the options mary talks about over ten. so now there is the benchmark for mr. blankfein. and lloyd, jamie did not take cash. >> well, goldman is going to surpass what anyone else does.

>> is that your bet? >> yeah. >> maybe he comes out and says he is not taking anything. >> i don't think so. i think goldman will surpass him. >> here we go. >> okay. larry kudlow. he's not here. okay. we're just quoting him. >> just a ghost of larry kudlow is here. >> greece peaked in 345 b.c. but their problems may soon be our problems if they're not already. washington taking up debt threat these days, behind closed doors. "the wall street journal" spoke to some of those officials. john is live in washington. people worried about greece? >> they're certainly watching it very closely at the fed and the treasury but, you know, the bottom line you're going to hear out of them right now is very muted reaction. they see this as europe's problem and they want to keep it that way. the one thing they don't want to see happen is a reaction in markets like we saw yesterday where people start to infer what is happening to greece could happen all over the world when we get new kind of con tejon

effect. right now the message out of here is europe's problem. they'll take care of it. and we hope it doesn't spread. >> well, i mean, i don't know whether you can say it's spread but it is certainly affecting portugal and spain, right? >> well, it's affecting portugal and spain. >> they have the same problem. >> you know, and the worry is that it could go beyond that, say to eastern europe, which was really stress tested last year by the financial crisis. you know, for the u.s. it has two important implications. one is on the dollar. you could argue it doesn't help the u.s. because a stronger dollar is going to make it harder to drive an export driven recovery. it also keeps the fed on hold a little longer than it would otherwise be all else being equal. the real big worry is that this sends some kind of wakeup call to investors. investors start punishing any country that has fiscal problems including the u.s. and we start seeing long-term rates rise. that's one of the reasons that they're kind of relieved at the fed right now and the treasury is we're not seeing that in

treasury yields. treasury yields have been kind of tame. and, in fact, investors are moving into u.s. assets and not away from them during all this. so another reason to say this is europe's problem. we're keeping our hands out of this, keeping our math out of this conversation. >> all right. >> thank you very much. >> thank you, john. >> mark, as mary reminded me, goldman sachs is only taking stock so he will only have stock too. >> yeah. sure. coming up the guy who made the most money for his institutional most money for his institutional clients through last year.

here is what's happening 30 minutes into trading. >> what, mark, is happening? >> there we go. the white house's christina romer tells "squawk on the street" she is encouraged by the january jobs report and that president obama will announce another lending program for small businesses today. stocks are moving modestly. travelers, the biggest gainer on the dow up more than 1%.

boeing the big loser. tyson, airgas, trading at -- 52-week highs. >> hum. interesting. by the way, did you hear in china something is happening? the trade wars are heating up. we sent back the panda. it wasn't enough. there's going to be real double the duties or tariffs on chicken, knees and toes or wings and feet as some may call them. >> is that part of the reaction to -- they're upset with our pressure on the currency. >> yes. that could be part of it. >> what have we got here? steve liesman has broken some news. >> mark, federal regulatory agencies are out with an advisory here saying that small businesses are still finding it difficult to obtain or renew credit and they're urging banks to be prudent but not to be overly cautious in their small business lending. this is the second type advisory

we've had from financial regulatory agencies. the previous one was about commercial real estate. banks they say may at times become overly cautious on small business lending and they're saying the banks that engage in prudent lending of this type are not going to be criticized by their regulators who are saying they'll ensure their supervision doesn't lead them to reduce their lending to small businesses. one other thing they're saying, this lending helps for cash flow which is used to repay loans. so it's a bit of one of these funny advisories, erin, where they talk out of both sides of their mouths. don't make stupid loans but if you make loans that are prudent we're not going to criticize you for doing that. they're trying to get small business lending going but obviously don't want the banks to book any additional losses because of it. erin? >> steve liesman, thank you. and we want to get a market check right now. we are down below 10,000. let's start with bob pisani. what are you -- how does it make you feel that we're down 41? better or worse than you thought? >> look, sell into almost any number on the nonfarm payroll

unless up a hundred thousand was the mantra yesterday. they were set up for a disappointment. it was not a dispointment overall. i think it was important the average work week increased a little bit. some of the revisions were confusin confusing. i'd say all in all pretty much in line with expectations and remember to just prime to be disappointed at this point. some of the big international, industrial names throughout the morning, the deeres and caterpillars you'd expect to be weak. it's interesting con-way is up. the trucking industry has problems. we're slowly seeing improvement in volumes and tonnage but pricing is a problem. ryder leases trucks. con-way is a truck shipper of goods. shipping is improving but pricing isn't. over capacity is a real issue. let's move on. i'll show you tyson here. good news for tyson is the chicken volumes have improved noticeably and the beef volumes. they had a big problem last year and that's helping them. finally i want to note that air products have been down on the down side here. they did make that $60 bid for

air and gas here. big thing is that if this deal goes through there's only one other major player in the gas business and that's px air. trader talk.cnbc.com. scott a little on the down side at the nasdaq as well. >> yeah, bob. we're looking for a little direction trying to figure out which way we want to go because we've dipped negative again down 0.1%, a four-point loss. most big cap technology stocks showing modest gains at best in the likes of apple, google, cisco, microsoft has just ticked negative by a fractional amount. sienna i continue to watch because it's one of the biggest losers. to the down side today down 3% on a downgrade over at barclays. dollar tree is also a loser. that stock is down 1.5%. it was also downgraded at jp morgan the firm saying most of the positive catalyst for the stock has since played out. urban outfitters up 0.5% added to the top picks live list over at citi and shutter fly and bb stores continue to watch them as well a couple retailers doing quite well. shutter fly easily beat earnings

and bebe was upgraded as well. >> i like to keep my eye on gasoline futures on jobs day because when you get the jobs data out showing the unemployment rate, also showing the number of people out of work, what does that mean for folks trying to get to a job or get anywhere in terms of gasoline demand? will they have the money to fill up their cars? we are looking at gasoline as part of the petroleum complex and oil prices. keep in mind that 72.46 number, the overnight low, to see whether oil can stay above that mark. in terms of what we're seeing in some of the metals we're looking at platinum and paladium as the weakest part once again as the car troubles, not only toyota but also ford continue to weigh on the sector. those metals are used in cata lit tic convertors and if they'e not buying that can impact futures. as we look at gold prices we are at a three-month low. we did reach the 10.50 juáju a lot of traders are, see another test on friday of the 1050 level. >> i tell you what, sharon, it really, truly is an unbelievable

break we're seeing in currencies. remember, if you wanted for example to profit from a downward move in the euro you can in an isolated way just have that position in the euro. because the currency position only exists relative to another currency. so you either sell the euro versus canada or the euro versus the yen or the euro versus the dollar. what we're seeing is that dynamic and the pound dynamic is one of the main reasons the dollar is getting so strong. if you look at the dollar index over two days we're over 80. we're over 80 by a third of a cent. these are the best levels since the first half of the month in july. why are people so nervous? you know, debt to gdp budget debt, ireland is at 11.7, spain 11.4. u.s. at 10.2. greece at 8.4. we're better than those countries. but it's still disturbing to watch what others are doing. back to you. >> thank you very much, rick santelli. let's get back to mary thompson

with more breaking news. >> that's right, erin. this concerns jp morgan as well. the company saying that it is going to have a say on pay vote for its shareholders at the 2010 meetings. you might recall that last year any bank which included jp morgan had to have a say on pay vote on compensation. last year that vote passed or the shareholders approved compensation by a 97% margin but the company in light of all the questions surrounding payment on wall street this year is once again going to allow shareholders the right to have a nonbinding vote on executive compensation at jp morgan so that will happen at the 2010 annual meeting which typically occurs in may and of course comes on the day when we now know that jp morgan the ceo of that company has been awarded a bonus for 2009 of about 16.1 million in restricted stock and options. erin, back you to. >> you and i have been talking about how confusing it is to remember who said what at each company about compensation. but again, to go to the goldman sachs comparison, they i believe are still as a board opposed to

say on pay so this would mark -- >> no. actually, goldman sachs has come out and said their shareholders will also be allowed a say on pay at this year's annual meeting. >> so they're all in the same page on say on pay. the management is now -- >> at least for this year. the question is will they have them in subsequent years. but this year shareholders at both of those companies. >> ah. >> are going to have the right to have the nonbinding vote to approve or not approve executive compensation. >> wow. i would have thought once you did it you did it as a policy. >> no. for one year so far. we'll see whether or not they make it -- >> devil always in the details. thank you, mary thompson. >> sure thing. >> all right. today's jobs report a bit of a puzzle. the unemployment rate at a five-month low. 9.7%. that's not bad. well, it's better than it has been. but revisions show deeper cuts than previously thought. total job losses, 8.4 million since the recession began.

let's get more reaction to this morning's jobs report, figure out whether we should be happy or sad. the chief u.s. economist at deutscha bank and the cnbc contributor and michael, chief economist at mkm partners both join us. i think i'll start with joe. was this a good report or a bad report? >> mark, it was decent. it was great. we need to see some job growth. but the rate falling led by a large gain in household employment combined with a longer work week led by manufacturing and we got some -- i think it makes it more a good report than a bad report. >> mark, do you agree? >> completely. we've got good news and bad news but the bad news is essentially behind us. the labor market recession was deeper than had been previously estimated so we knew that was coming. we just didn't know which months, you know, would show the exact tally. so now we've got that. that's bad news. the good news is mainly in these indicators that are looking

forward, so joe mentioned the temporary hiring. that's been very strong. it's a leading indicator of employment. people that work part-time for economic reasons is plunging. it's another leading indicator for employment. so there are others out there. so i think if we just have a little patience here within the next three to six months we're going to be seeing substantial job gains. >> and, mark, i like to add to what michael said. the improvement in household employment i think is important because i would argue at turning points the household survey because the sample changes every month is probably better at picking up small business creation than the payroll survey, which uses these adjustments. >> so you're actually saying go off the rate? that the rate has at this moment a recovery is more important than the payroll? >> well, yes. i would say yes, erin. that's right. the rate typically whenever it peaks it comes down hard. that's true in every cycle. even in the last two. the difference was that the rate peaked well after the recession ended. in this cycle we actually may be

looking at sag gomething again looks more v-like and more normal. >> i'm curious. the conventional wisdom, right, is as people start to come back in the work force, all these people, the unemployment rate will go up and that could be the sign of an improving labor market. do you think it won't happen that way this time? >> i don't think so, no. when the household survey turns we could generate a million jobs a month. i mean, it will probably keep the unemployment rate from getting to like 7% any time soon but i think a rising participation rate will be reflective of stronger household employment. >> final word to you, michael? your biggest concern right now, worry is? >> well, you know what, erin? i'd be very concerned if we started to see some of these broad measures of systemic risk back up. but it just isn't happening. everybody's worried about spain and greece you about fact of the matter is, there's been no pressure on commercial paper, interest rate swap spreads at

all. essentially they're at completely normalized levels and haven't moved. the yield curve hasn't collapsed. we're just not seeing those things that would really make us take a step back and say we've got to question the recovery story. i'm still in the v-shaped recovery with joe. i think we just have to have a little patience on the labor market here. >> thank you. >> thanks. >> joe, michael. we want to know what you think, mark. which will we see first? dow 9,000 or 9% unemployment this year? by the way, that doesn't mean you can't have both in the same year. it's just which one would come first if you see either one of these coming true in 2010. >> 9% unemployment would be the optimism. dow 9 t,000 would be the pessimism. >> hypothetically, yes. >> so -- >> let us know. squawk on the street.cnbc.com. down 60 for the dow, 9941. >> toyota's president breaking his silence.

speaking for the first time since the recall, apologizing for the massive recall over sticking gas pedals if that is indeed what's going on because we still are not sure. the stock trading higher this morning. phil lebeau, at a toyota dealership in park ridge, illinois. >> mark, this what is people have been waiting for. two weeks after the first recall of 2.3 million vehicles, akio toyoda, the chairman and ceo of toyota, the man whose grandfather started the company, held a press conference in japan and he was very upfront in saying we apologize. apologizing to the world for the recalls of these vehicles, again, 2.3 million here in the united states. akio toyoda also said he regrets causing worries for customers. >> toyota's car is safety but we are trying to increase it

better. so this kind of procedure is good for the customers. so please believe me, we always -- customer first is first priority. >> in addition to apologizing, akio toyoda says the company will cooperate fully with u.s. investigations and congressional hearings that start next week. toyoda is also asking outsiders to be a part of a committee to check on the quality of the company. that's going to be a quality control committee that akio toyoda himself will be in charge of. take a look at shares of toyota in the last month down 11.7%. that's how much this stock has dropped in the last month. the big falloff, though, coming in the last couple of weeks. a bit of a bounceback today. there is going to be some debate, guys. when do you get in on this stock as it's been beaten up fairly heavily in the last month. >> phil, beaconventurecapital.cbea"busin

drawing a comparison between this and a problem audi had in the mid '80s, which they had a brake problem but audi of course a much smaller player but was seriously crippled in the u.s. market. i take it no one is assuming toyota will be that badly hurt here? >> probably not as badly hurt as audi and a couple other things to keep in mind. audi was a case where they were ultimately vindicated. there is not a problem with audi and unattended acceleration. in this case with toyota it's been pretty clearly demonstrated there has been unintended acceleration and toyota has to recall these vehicles. much larger in scale but a much larger company that has the resources to with stand this kind of impact. >> all right. phil lebeau, thank you very much. by the way, erin, the u.s. is going to investigate the brakes on the prius. meantime, ford says its hybrids also have a problem. so it's like we've gone from a scandal today on wall street to

a problem today for the auto makers. >> isn't it interesting, the big giant bold 24-point font is about the prius and ford is the little skinny one below. so for now on a p.r. basis the u.s. auto makers are doing lral right. their recalls on the sly. >> we'll see how big the ford problem is. >> a fair point. >> still to come the friday jobs trade. we're tracking the money flows about 45 minutes into today's session. kind of holding steady here, down 55 on the dow. >> and david faber will have his special report up next and then a top rated stock picker on how he's playing the market. as we head to break, the u.s. dollar is higher.

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back to "squawk on the street." we want to highlight what's happening in latin american markets because they're getting hit particularly hard this morning. brazil is off by more than 3%. we focus on it the most in latin america because there has been such incredible growth. not far behind mexico is lower by roughly 1% as well. this comes on the heels of a big sell off throughout the region yesterday. so they are far more to the down side than we are here in the united states. erin, mark, back to you. >> actually, matt nesto here. we are tracking big movers today. check out the small cap named kelly services up 10% here today. the company coming out with a

surprise upside on better than expected revenue. take a look at the scientific laboratory maker, pki one of the top three gainers in the s&p 500 this morning beat by two cents. the revenues were flat but they were still better than expected and the guidance, we love guidance here. much better than expected, buck 35 to $1.42 versus $1.38 estimate. also worth a peek and maybe a buying opportunity gannett. have you seen the week gannett has put together? it ain't pretty folks. off 19% just in five days. the worst stock in the s&p 500 by that measure. it's down another 5% today. and then lastly, 5.5% gain again one of the best performers, top five perform neers in the s&p 5 outperform from neutral at credit suisse also defended this morning at broad point amtech, a big miss on their fourth quarter on wednesday and the stock has been pounded but it is coming

back here today with three upgrades. now over to david faber for the very latest faber report. >> thanks, matt nesto. always nice to have you introduce me. let's get to an interview here. our coverage of the fiscal health of sovereign nations of course continues and it's going to be something you'll be hearing a lot about this year. we've been watching investors scramble for protection. we've been talking again about credit default swaps, volumes have been picking up. risk of course has been moving across borders, national borders. my next guest here to discuss how this explosion in sovereign risk is driving up the cost of debt for all of these nations, and what the counterparty risks are, as well. please welcome my guest. tim, you're an expert in cds and help me and my colleagues out with very thoughtful e-mails. i want to turn to you to respond to a viewer e-mail that i got yesterday on the cds front.

and it's not unlike some we've gotten in the past. and it went like this. the viewer asked, why is cnbc -- and yesterday i was quoting a lot of cds on all these nations -- is again helping these cds scammers wreak havoc. seriously didn't we go through this drill already? and 8 million people out of a job so these people can play their high stakes game of cds poker? would you explain to me why cds is important and whether this kind of a criticism has any merit? >> well, it obviously has merit from a populist perspective. it's an easy thing to attack, this grae, murky area with the words credit and derivative which go so nicely together to cause headlines. unfortunately, especially in the sovereign case, there's a very different situation than there is in corporate bond land. in corporate bond land when we use credit derivatives to hedge or even speculate on default or not default, then the size of

the volumes we trade there are in line, are similar to the size of outstanding debt in the corporate. so if i wanted to make a bet on gm, on ibm, on you name it, in the corporate bond land, those notionals, the amount of money we play with in cds land, is similar to how much we have over here. in sovereigns, it's a teenie, tiny fraction of the, you know, tens to hundreds of billions of dollars that we see in government bonds. and actually what we've seen in this selloff just so everybody can calm down a little about cds, it's been the bonds that have led and the cds have gapped because there is so little volume there and they've been dragged wider by real money leaving bonds, not necessarily shorting bonds, but actually leaving the bonds. >> right. so this idea of manipulation, i mean, really in this case the cds is simply a barometer of what we're seeing in terms of cash spread for bonds versus the german bond i guess for all these other countries.

>> and, you know, exactly. and a good example is greece right now. where the greek bonds, the ggbs actually still trade about 45 to 50 basis points wider than the cds. so if you look at the spread on gdbs versus bonds, and the greek cds versus germany's cds, it's about 50 basis points wider. so bonds are leading this charge. >> right. that's where the volume is. so, you know, what should we be focused on as we continue to monitor the health of these countries in trying to understand what investors are doing? where should we be focused in terms of figuring that out? >> well, i certainly think that the critical thing here is the majors, the u.s., u.k., japan. these guys are very unlikely to fail, to default, to actually trigger their cds. you'll see their spreads rise. but that is very much a reflection of investors' perception of where the fx

relative value is going to be in the future. in other words, their devaluation risk. >> right. >> these guys can print, inflate, whatever term you want to use, to not default. whereas the break between monetary union and sort of political union in europe makes that a lot trickier. and what we're really focused on and we saw this yesterday, really coming out, was a contagion. we saw that, which is very worrisome for the euro, leading to dollar strength and also we saw gold drop yesterday and we think if we see continued contagion then gold will actually out perform the dollar as a safety, flight to safety kind of reaction. and certainly dollar strength is exactly what we were expecting here. >> right. >> and that's why we started to position short on emerging markets in some of the central and eastern europe nations that are so dependent on natural resources and commodities. and today following yesterday we

see those nations starting to go as well, the venezuelas, argentinas, and so on. >> tim, we have to leave it there. hope you'll join us again to help us keep up with this. >> thanks. >> mark, back to you. >> thank u. david. just ahead the s&p down more than 6% since the recent january highs. one of wall street's top stock pickers on how he is playing a very moody arc. >> and tim ryan one of the most powerful voices for the securities industry striking back at washington right here on "squawk on the street." the market has cut its losses in half. we're now about 22 points to the downside. we'll be right back. i drove my first car from my parent's home

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coverage recognizing the best institutional advice in the united states and canada. this year's winner is stu desmond, institutional sales officer with r.w. baird. basically go through and look at what people recommend and who makes the most money for their clients and stu, what would you say accounted for you winning in terms of making the most money for your clients?

>> well, thanks for asking. as an institutional broker keep in mind the clients that we're calling on our portfolio managers that are managing all of our retirement money, and it's our job to help them select stocks to help the performance of their funds, we have access to here at baird 40 senior analysts that help us recommend stocks. we get to travel with ceos of companies and hear the message up close and we have investment conferences throughout the year which allow us access to the ceos and cfos of these kms. last year at this time the market was at its bottom. baird had a conference in boston our business solutions conference where i was able to get access to information from ceos and cfos and it appeared very clear their confidence was much higher than was reflected in the prices of their stocks and i was able early to recommend some of these stocks. that helped my performance early in the year. >> and what about now? what would you -- what are the best ideas coming out of your shop? >> well, keep in mind that from a macro perspective most of the

experts including baird's economists feel that gdp is going to grow in the low single digits and the market will be up from 5% to 15%. the key though here is that most experts feel the market is going to be a rollercoaster ride. there will be some significant upturns and downturns and so far we've seen some downturns and at that point in time i am going to be looking for high quality stocks that i think have over reacted to the bad news. those are the kind of stocks i'm recommending. my number one selection at this point in time is a large cap stock abb in the power market, worldwide leader. that's my number one pick at this point. >> all right. abb. thank you very much. we appreciate it, stu. congratulations. >> thank you. next, wall street has some choice words for washington and the head of sifma strikes back at lawmakers. maybe he only has the courage to do it today because it's a snow day down there and they can't fight back. we'll find out. paid invoices go right here. bang!

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let's take a look at the markets and the internals. we have rallied back again. been a real up-and-down day. let's check the internals. probably negative. ooh. much stronger negative than i expected. more than two to one negative on the big board. on the nasdaq not quite so bad, about 13 to 10. >> we're only down nine points. the internals telling a much

more clear story than the headline. okay. the obama administration is preparing to go forward with a new tax on banks or fee or whatever you would like to call it. the financial industry is fighting back. in an op-ed in today's "the washington post." here with us to talk about it is tim ryan, head of sifma. i joked that because of the snow day down there this is the day to come out with a big punch to those guys. so what's your main argument? >> the main argument is that quite frankly it's time to move forward. many of these proposals that have come out at the last minute whether it's the t.a.r.p., tax, or the volcker suggestions, are really last-minute, almost diversionary type activities. and what we'd like to see is people move on. we'd like to really get focused on raising capital and creating more jobs, which is what we do in our industry.

>> now that you have all of that taxpayer money you want us all to move on? >> we've already paid it back. many of these banks we've paid back. >> but you are still benefiting from unusually and in some cases government subsidized low interest rates. i mean, that's part of the reason your industry is making these large profits right now. so, i mean, you've paid it back. that's it, right? >> well, let's talk about the tax, specifically, mark. what has been proposed is a recapture of the amount of money that was paid out of t.a.r.p., which they're now going back and asking the same people who have already paid it back plus interest plus warrants to pay again and all we're saying and what i've said in this op-ed is rather than going out and asking us to pay again let's at least collect the money that's owed from the people who basically were given the t.a.r.p. funds which they haven't done yet. >> a lot of the concern, though,

when you say these last-minute adjustments to the financial regulatory reform which would potentially make it very, very different than what's been proposed, they say, look. thank gosh these people are coming in. mr. volcker and coming in and getting the right idea because the reform that was going through didn't have a lot of teeth to it. >> well, we obviously don't agree with that. >> right. >> i mean, the central issue here is, and the problem we had over the last two years, is with the large interconnected financial institutions. so in that context, mr. volcker is correct. we don't think that his proposal, though, makes a lot of sense. and the most appropriate thing to do now is to move forward with the house bill. i mean, we've already -- the administration proposed legislation. the house largely adopted it. we were largely in favor of most, up to 90% of what was proposed. >> should we bring back glass/steagall? >> i don't think so. >> the volcker rule on steroids.

>> we've moved on and markets are so much more globalized. if we did in the united states the u.s.-based firms would be competing with global firms that are not operating on that model. >> coincidence that not long after glass/steagall is effectively repealed we wind up with people in your business almost driving the world economy off a cliff? >> i don't think there's a correlation between that. i mean, we've talked about this before. when i've been on here. i think it was more, it's obviously the end of a very long cycle but we also -- >> sure. >> and we admit that some of the financial engineering was pushed too far. i don't think that had anything to do with whether you were an isolated worker, dealer, or universal banker. >> i hear faber sniffling. faber? >> thanks. mr. ryan, compensation of course so central to this entire debate. this morning we hear from jp morgan. not paying its people nearly as much as it has in the past. somewhere between let's call it $8 million and $14 million in

restricted stock and cash for many of their officers. should that be a new standard for the industry and wall street and of course there's clawbacks, five year, inability to sell, or do you think, you know, it's whatever you do and whatever you make and no more limits in terms of the future? >> the compensation systems have clearly changed. you only have to look at some of the announcements from, for instance, the controller of new york city as to tax proceeds and you can see that the industry has largely changed. we've pushed out compensation more so it's variable so people like jamie dimon are being paid largely in restricted stocks. >> should thab tt be the new standard? >> i think it's going to be the new standard. i think you're also going to see as more firms announce compensation clawbacks, you're going to see more variable

compensation. you're going to see more activism by boards and compensation committees. and some say on pay. >> one final question from me back to this issue of the volcker rule. the companies that would be impacted by it say it's anywhere really shy of a% of the5% of th business to get rifd the businesses he has an issue with. if it's that small why does the industry care so much to fight the volcker rule or is there something we're all missing that would fundamentally -- >> no. i don't think you're missing anything. one of the biggest problems we have with this, first of all, it came in really late. this is a topic they've been talking about for 13 months. they didn't include it in the original proposal. it a it's not in the house bill. they can't even define what proprietary trading is. there have been all these hearings. this is a very tough issue. you throw it in at the last minute. it's not the way to do it if you want legislation done this year, which we want. >> all right. thank you.

>> thank you very much. coming up, the president's plan to create jobs by doubling exports over five years. throughout our lives, we encounter new opportunities. at the hartford, we help you pursue them with confidence. by preparing you for tomorrow. while protecting what you have today. you've counted on us for 200 years. let's embrace tomorrow. and with the hartford behind you, achieve what's ahead of you.

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aflac! ...then you don't know quack. to find out why more businesses provide aflac, visit getquack.com welcome back to "squawk on the street." wanted to look at one of the day's biggest movers. in an m & a landscape that has pretty much nothing going on we've got this unsolicited deal today, a proposal from air products to acquire airgas for $60 a share in cash. and it is trading above the price indicating of course investors think at some point this will end up with a higher bid or certainly a higher stock price. we'll see if there are any other bidders here. early days. a few things simply to tell you about at this point after speaking to people close to both sides on this transaction. it's going to be nasty. i don't think there's any doubt about that at this point. and it's going to take time. air products chose not to launch a tender offer right away but

don't expect them to wait too long. they will launch a tender offer. of course they can't actually close the tender because there's a poison pill but it will put them in place to file hart scott, start the antitrust approval process moving. going to play out over the next six to nine months is my guess at this point. you've got an august 18th meeting. that can get pushed back. yes there will be a potential proxy fight here. but it's going to take time. you got a 10% owner in the ceo, founder of airgas. he's going to fight hard. finally, there was a lawsuit filed in delaware by air products but really probably only to establish venue so that when they get countersued by airgas for this thing they're claiming about conflicts in advisers it'll already be in delaware. don't read too much into that but it did help them establish venue. this one is going to play out over a long time. good thing. got nothing else to talk about. all right. double exports in five years, a bold goal by president obama. one the white house says will support 2 million jobs but is it

achievable? the commerce secretary sharing his strategy with our john harwood in today's harwood file. >> hey, david. you know, the 9.7% unemployment rate today was good news for democrats, but everybody knows it's kind of a sugar high. we'll have double digit unemployment for most of this year and so the president is focusing continually on jobs and one of the ways they're doing that, not with standing all the antiwall street rhetoric and beating up on bankers with the bank tax and the volcker rule, is pleasing to business. that is doubling exports over five years is a goal the chamber of commerce has adopted for years now and the administration secretary, the commerce secretary told me yesterday it's partly a matter of financing for small business which they're going to offer but also partly a matter of education. >> we have a lot of companies that aren't aware of export opportunities but of those that do, are involved in exports, too many of them export to only one country. 58% of all u.s. kcompanies that

do export, export to only one country. sometimes say they're familiar with dealing with say exporting to canada but they really are unsure about asia. or if they export to europe, they don't know how to export to latin america. because the culture, the language, the laws are different. but it's, we think they're prime, ready, and that's what we need to do. and if we look at the united states as a whole, too many of our united states companies don't export compared to the percentage of companies in other countries. we are under performing as an exporting nation. >> but here is the rub. the chamber says that the goal of doubling exports over five years can only be achieved if in fact the administration moves ahead on some of the free trade initiatives that have lagged under this administration. you've got bilateral deals negotiated with panama, colombia, and south korea that have not been submitted to congress and secretary locke told me the obama administration is still not ready to move. >> the administration is not

interested in putting forth an agreement that is unfair to u.s. companies where trade agreements still have significant market access barriers for u.s. companies when the united states has relatively few barriers at all for companies coming from other countries. >> now, there's no question that part of this slow walking by the administration reflects political resistance from organized labor, which is critical to the democratic base. best guess is that some of these agreements, at least the one on south korea, may move after mid-term elections this fall. and now we'll throw it to steve liesman with breaking news. >> john, you might be interested. senator dodd releasing a statement saying he and senator shelby on the senate banking committee have reached an impasse on financial reform. he says shelby is still committed to finding consensus but meanwhile he is going to go ahead. he said it's time to move the process forward. he is going to go ahead without the republicans on this. our understanding from dodd's office is a bunch of stuff has been negotiated with the republicans. that will stay. the stuff where there has been

no agreement, the democratic side will go ahead on its own. we'll take a break right now. and more "squawk on the street" coming up. host: could switchino 15% or more on car insurance? host: is ed "too tall" jones too tall? host: could switching to geico 15% or more on car insurance? host: does a ten-pound bag of flour make a really big biscuit?

welcome back to "squawk on the street." i'm darren rovell and we're in

might miami, site of super bowl xliv. joining me now is kevin marching, the ceo of under armour. >> i think every great brand is good for us, basketball, baseball, soccer, field hockey, and today with, vents like super bowl there's nothing bigger than this week. >> almost $1 billion company, everyone talks about shoes. you got into shoes, your last earnings in 2010 in terms of releasing a major shoe. how should the market read that? >> it gives us the ability to lean on any one of them depending on the season. last season we leaned on footwear and we just said in 2010 we'll be leaning on our apparel business and our direct consumer business. >> a lot of people have said that warm winters have want been good to under armour and now we have a cold winter.

what does that mean? >> i think our fbs speak for themselves. total business was up 21%, inventory down 19%. increased cash from $88 million to $200 million. we built a good business in 2009. it can happen. no loser talk. >> finally "blind side." it's done $238 million and up for best picture. how great of a buy was that for under armour. >> we didn't get a piece of it, but we certainly got a lot of exposure. good movie and good for sandra bullock and hope she gets the academy award. >> thanks for being with us. >> only in miami. >> papa john's is an official super bowl sponsor for the first time in the company's history. mr. thompson is here now. mr. thompson, cost benefit. do you really sell enough pizzas to make up for the money you spent on the super bowl? >> we sure hope so. we sell somewhere around 750,000 pizzas on super bowl sunday and

this is the first time we've been the official sponsor of the nfl and super bowl so we think this will be our biggest day in our history. >> biggest day in history. what did you say 700-something thousand. wah could happen this sunday? >> i'd hate to make a guess there, but i can tell you that our commissaries where we produce our fresh ingredients and dough, we're working around the clock. we're getting all of the ingredients out to some 2800 stores domestically and we're having a big fun. big time. our founders down in miami this week doing a lot of things for us and it's just an exciting time to be at papa john's. it's the first time we've been associated with the super bowl. >> you've done local promotions, of course, surrounding the super bowl. so is super bowl sunday even without this year's tie-in, is super bowl sunday usually your biggest day? oh, yes. it is our biggest day. we'll have a 30-second

commercial and also the winning team whether you're for the colts or you're for the saints we're going to do toppings for touchdowns and on the monday, tuesday, wednesday after super bowl, if there's five touchdowns you get five free toppings on a $9 cheese pizza. so we'll make the super bowl event last longer than last sunday. >> is there a second biggest day? >> halloween. >> halloween? >> yes. yes. >> no kidding! >> well, it's a trade secret, but yes, it is. that's a big time for us. >> i think we might have had domino's on that day. >> i had no idea. so i can get away with cutting up squares of pizza and putting it in kids' bags, is that it? oh, no, i get it. halloween. what's the -- a year or so -- actually two years ago, people in your business were going through a pretty bad cost squeeze for the ingredients, where do we stand on that now.

price commodities have come down and it's been advantageous for us. dairy farmers are put in a different position. cheese is the biggest part of the cost of pizza and so we've benefitted from that and our franchisees have benefitted from lower commodity cost, and we've had a very good 2009 and we'll release our fourth quarter earnings on the 23rd of this month, and we feel we have great momentum going into 2010. >> all right, sir. thank you very much for your time. >> thank you, mr. thompson. why are you trying to pretend that yoourt kind of person that would take the pizza out. >> for the pizzas. they sent us three pizzas. >> but you tried to do some kind of thing that you're the kind of person who uses a knife. >> what's that one in front of you. >> pepperoni, when i know your paws go right in there. >> pepperoni. don't forget to vote on today's poll on the web which we're more likely to see first. down 9,000, squawk on the

street.cnbc.com. results in two minutes.

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poll. >> a measure of optimism versus pessimism. what comes first? 9% unemployment or dow,000. survey said! wow! two-thirds are pessimistic saying we're going to see dow 9000 before we see 9% unemployment. i'm, frankly, surprised at that, but -- >> yeah. maybe that's a contrarian indicator. >> i don't know. >> you could hope. >> people are not optimistic about that. >> no, they are not. okay. there are a couple of thing asks one to go through a couple of big stories we had through the show. mary thompson breaking the final compensation for jamie dimon. 16.1 million. >> .1 million in total value. we do not yet have the number for lloyd blankfein and that will be all stock. and you're looking -- >> according to this "the financial times," goldman's board has not met yet to discuss

what they're going to give blankfein. >> wait. is goldman's board saying they have not discussed lloyd blankfein's compensation? that's what the ft said. they're waiting for the dust to settle or maybe they're waiting for clear guidance. >> so all of the board meetings it just doesn't come up. i do not know because i have not confirmed this myself, if the f.t. is right, that is atrocious to think that they could just not even discuss his compensation. >> okay, but again this, is their report, want mine. >> we've got to go. >> have a good day. >> have a good weekend. >> good morning and welcome to "the call." we are 90 minutes into trading. i am trish regan. we're watching a market here that's struggling amid this jobs report with the unemployment rate falling, where do we go from here? what does it mean for your money? we have the details coming up. happy friday, larry. >> you too, trish. i'm larry kudlow. the euro tumbles to an eight-month low against the

dollar and we'll discuss if the european currency is ready to implode and what that's going mean for your investments. hello, melissa. >> hi, larry. the head of toyota apologizes for all of the company's problems and we'll have the latest including what's happening to the company's crown jewel. that's the prius. this is "the call" on cnbc. >> it is all about the jobs report on wall street this morning. the unemployment rate dropping below 10% while 20,000 jobs were lost in january. november was revised upward, october got a revision as well. overall, the numbers were not as bad as some feared and we'll have more on that in a few minutes. >> right now the s&p 500 is essentially flat on the session and is down a touch about a quarter of a point. tyson food among the biggest gainers and the dow right now is trading to the down side, well off the lows