>> it's 30 to 1. >> i know it is. i'm going to do creative cause because i don't know any better. anyway, the -- andrew is coming out there. i will see you, though, on monday. we look forward to it. say high to mr. buffet. >> okay, see you. >> bye. >> "squawk on the street. " >> good morning, welcome to "squawk on the street'. jim cramer is off. he's back on monday. take a look at futures this morning. after the job number came in half a percent lower than last month, but highering at 115. obviously even below some of the more dire expectations, europe as well.

one job thaw will never go away, riding the rope and the number today is the jobs number we're watching. stahling in april, can the market take it in stride? we'll take a look at some of the possible trade-off there. >> facebook looking to price between 28 and 35 a share. >> and yahoo trying to snuff out this embarrassing revelation that its ceo did not get a computer science degree from sven hill college. is the fight between management and investor getting even nastier? >> we've got to started to with the jobs report. a mixed picture of employment. the unemployment rate falling to

its lowest in three years. u.s. employers decrease hiring for the second straight month in april. we had the average hourly wages essentially unchanged here. >> i believe the lowest since 1981. and i know people are seizing on that as something that it's not a good sign. and i think those who were a little more positive says that even thins out to a level that is not that bad. slowing a bit, but not as much as might be feared by the number itself today. rewe beginning to see the beginning of a trend? and then there's the number who have been unem employeed for 27 weeks or longer: again, hard to

tell if that's because they found a job or because their benefits have expired. i don't think it's all about clear. a lots of different things here. >> not a great number, at all. but, again, a lot of different l things going on. >> some of the high profile predictions weren't fame off. >> that until you get construction back in this country, it's gingrich to be hard to get seitraction and obviously knowing his businesses, that's where you're at. >> you would have seen some sort of bump. if you think that there's a seasonal impact, you would have thaulgt that you would have seen some sort of anomaly when it

comes to the out door industries like construction. we didn't see that stand out. >> they did have 16,000 jobs. that's still less than kpmted. we talked about this being a real bright spot, that is the growth in manufacturing in part because people are build ling plants here because their main cost is apper gee. but, again, you know, we'll see. you know, with the ten-year at 1.9%, mortgage rates at all time lows, melissa, one would imagine construction as a part of residential housesing might start to pick up. >> all of that said, mark, i mean, not a huge disappointment for a futures standpoint. there's something for everyone in this report. there really is. and all of this doesn't give us any sort of clarity.

each side has something to hang their hats on. >> it's not done. we'll talk about some of the trades later on in the show. in the meantime, facebook is practicing eoliths ipo pitch today. all day today, morgan stanley and goldman sachs will host what they call teach ins to basically become experts on all things facebook. and then later on today, my favorite picture is, from, ofblg, the new york post. i don't know. we can never get tight on these guys. it's strks uckerburg full with a truck full of cash. he's going to be making -- he's actually raising a lot of money schismly to pay his tax bill.

therefore, he's going to sell $1.1 billion worth of stock to pay the taxes. earlier this morning, david, the flag goes up above the lobby door. i believe they took your -- >> did you want that for your house? >> i think they did take it down for rain. it's going to be raised again later on today. what happens at these teach ins? they're just walking through all the melt ricks? >> yes, they'll walk them through all the different things and try and anticipate some of the questions they'll get. i would assume. so, you know, you've got to have

a sales force that seems it knows what it's talking about. kayla has been live all over this this morning. good morning. >> we started the day out at morgan stanley. we're here at j.p. morgan, stop two. let's call it a tour debanks today. they're pulling out all stops, as you can see. even though that flag has yet to go back up, you'll see some facebook branding and a big sign that says j.p. morgan welcomes. this is what the sales team is going to be wearing. if you have 200 people in a room wearing these, it's definitely going to be a sight to see. they also have brand new coffee mugs. it's also one of the league lenders and it's aleutian an investor in facebook. it's the digital growth fund,

similar to the way that goldman sacks has faced shares with its clients vmt interesting to what will go on today. they occur for some of the biggest ipos around. last night, the retail road trip presentation was posted on line which is where facebook ceo, vice president of product, coo cheryl sand burg basically gave their pitch to the app vess tors about the company. very high level thee ach ricks there. but i'm told by sources that was hosted so they could gets that out of the way so that what could take place today could be higher level discussions, primarily about financialings. how to answer questions when your clients ask them about face book. one big concern on the under writing side is people don't have a price point.

especially if you're an underrateer that wants to make sure that the deal goes off without a hitch. when we're talking conservative, we should look at that share. $28-30 a share. the company wants to air on the conserve teev side. it doesn't want to go up at too high of an evaluation. >> all right. thanks, kayla. very interesting, yeah. >> it's fascinating because in the road show video that they showed yesterday, the cfo made a comment to the effect we will

spend on mobile no matter what the payoff. we will continue to dispend on mobile. so i guess that's sort of this notion to facebook, it's sdim going to be a company that's very tightly held. and even amazon, to a certain extent, even though the control is not there the same way, they will do that. it's not necessarily a bad thing not to manage from quarter to quarter, right? >> google went public at $23 billion. this will be four times that. and get ready. back in the google day, it was all about doing no evil. get ready here's what mark had to say as bart of that ipo pitch. >> facebook's mission is to make the world more open and connected. and what we mean by that is that we think that people's lives are going to be better.

and u really, that the whole world will function better. >> all right. modest guy. >> people's lives would be better. we'll find them organs, we'll find them friends. everything else will be solved. >> how do you play it? we turn to two wall street experts. gentlem gentlemen, great to have you both. jerry, sort of a lukewarm reaction to the markets? what's your assessment of the job's number? >> i think it tells us what we should know, which is that jobs are a very poor proxy for profit growth. this particular economic recovery is so absent anything in the housing construction side. you're never going to get the big jobs numbers that you're used to veg.

that said, when we're 15-20% above troth level earnings, you do get the impression that earnings and what investors care about are actually doing quite wham. it goes to that story about productivity and all of the things that the u.s. con economy is strong with today. all this does is really reinforce the notion that the fed will continue to pump money in and make us that much better off. >> christopher, do you agree that this number gives more fuel to the argument that the fed will actually embark on qe 3? you can make arguments either way. >> well, i don't think that this is going to cause the fed to decide to do qe 23. 3. this is a very lukewarm numb hbr. the market's reaction reminds me a lot of a teenager who's hearing what it wants to hear. we've got to take a look at all

of the news and this is very mediocre. we need to be cautious as a roulette of what we're seeing. jerry, back to you. at some point, this will catch up. isn't that in fact what we have seen in the month of april? >> i just disagree. we -- the kwon instruction sector in the u.s. economy just isn't a profit creator. it's a job creator. it's a very diverse economic expansion from a profit standpoint. as an investor, i have a portfolio full of stocks and you can go across the board of great company that is are seeing

all-time earnings and yet to really see the valuations that they should be discannellata. that's why we see such big upsides in tech and energy and manufacturing. those companies are doing quite well. they're going to drive for some time now. >> when we come back, the first shareholder meeting since buffet's cancer diagnosis. let's check in with becky quick after a break. check out oil which has gone double digit this morning was trading at 99 and change for the first time since february 13th. unbelievable. a lot more squawk on the street. [ male announcer ] the inspiring story

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take you to a live shot of midtown manhattan and the facebook flag going up at j.p. morgan chase. again. >> again. >> they are not the lead left, right? >> no, morgan stanley is. >> it must be bigger. >> i don't know that they do. they have more of a plays out to

put up the flag. morgan stanley is in little closer fines there on broadway. skbl interesting. a lot of circumstance for a company that is 8 years old and would be in third grade if it was a child. we'll talk more about some of the things they said. >> they've got incredible margins but worries are about their growth. at the same time, much better but the growth pattern is what people are concerned about. meantime, omaha starts tomorrow. becky quick is live in omaha, of course. >> yeah, it was last night. we got chance to catch up with the oracle of omaha. he's going to be on this stage. that's one they'll be addressing

about 35,000 shareholders. you guys -- obviously, technology stocks, that's not where warren buffet has invested in the past. but he did say while he wouldn't be touching it himself schillings he does not think that social media, the networking of stocks at this point, he does not think it ohs the same type of bubble that we saw. so that's a little bit different. it was not an all out endorsement. but he was not saying that this is something like he had seen before. what we did talk to him about last night, carl, also, was what happens with the jobs picture. we were able to pin him down and he took the under on the consensus estimate. he was right on that call. and when we asked him why, he said it was because of what he's seeing in the economy.

listen to how he sees the economy. >> i would say we're still seeing an economy that's improving. but it's not at a fast rate. now, it's been improving quite steadily since the fall of 2009. but the trajectory has been just, you know, a very small angle. and that angle has not improved in the last few months. so if anything, the economy is better now than it was. >> why do you think that it's not improving at a faster rate. it's because home construction hasn't come back. that will have a huge effect. when we start needing to build as many houses as we have households for, you'll see a major change in the economy.

that will happen, but i'm gradually learning not to predict when. >> guys, we talked to hr meredith whitney the other day. she thinks it will be very hard for them to replicate what they've done in that first quarter. buffet think that is with wells fargo, you will see quarters later in the air when they earn even more than they did in the first quarter. guys, we've been watching so closely with earnings how they come in. and there's been a loyalty of naysayers who don't think campaigneds continue to earn numbers like that. >> becky, i'm curious. this is the first time that you're able to see warren in person since the announcement of his diagnosis of prostate cancer. was he surprised at the chatter and we action after the announcement that we saw? i just went to an analyst last

night and he said there's a 10% premium in the stock because of buffet. >> i don't think he's surprised at all. i think that's why he took that step to go ahead and issue a release. last night was the first night i had seen him. >> again, he took that describing what his position was which a lot of people wouldn't have done it. but he said that c warped, the cancer word, is one that has a lot of connotations. i do think it will be a topic of discussion here tomorrow at the meeting. >> all right. >> enjoy the weekend.

before the break, let's look at how we are setting up. a slight downtown here. you're earning 53 points lower. we're back right after this. er . with hertz gold plus rewards, you skip the counters, the lines, and the paperwork. zap. it's our fastest and easiest way to get you into your car. it's just another way you'll be traveling at the speed of hertz.

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less than expected. and, of course, we do have a winner for our nail the number contest. yes, you will win this. >> all right, opening bell just moments away. get ready for another big day of trading, especially market reaction to the jobs report right after this.

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take control of your portfolio today. trade commission-free for 60 days, and we'll throw in up to $600 when you open an account. you're watching cnbc "squawk on the street." live to see the opening bell, although it's not the only stock we're watching by any means. estee lauder, a stock that gets a lot of momentum behind it. 11-16 cents. and that will be a key one to watch.

>> yeah, the company has been very conservative. >> around there is the opening bell. and it's at the top of your screen. i think we're officially hit as of this moment. over at the nasdaq, the council general of mexico celebrating cinco de mayo. >> it's the fourth of may. >> an opening alerted to you that we were celebrating today for tomorrow mourning. >> what else are we whaping? >> speaking of ipos, i have cg up. it's one ipo that seemed to have

priced pretty appropriately where yesterday it was up by just a fraction of a percentage point. keep an eye on that vmt with the $22 that it became public at. just keep it there just a bit above the offering price. but they're going to be happy with that being below the original range. >> has it been a good week for coffee tocks? >> no. >> of course, green mountain is now green mole hill, as some have said. and now caribou taking their outlook lower for the full fiscal year. shares down -- were 10 neolyte earlier this morning. there has been some upside calling value. moderation in the growth tray

jacketed rio is how they put it. and given how much momentum has been behind some of those names. >> and given how much momentum is behind star bucks and its ability to hit same stores sales metrics. green mountain is up by almost 13%. this could be a bit of a short cove rio. yahoo continues under pressure today. it's almost a percent here and it's a very nasse tid war that has been brewing. >> of course, actually, things escalated this week. and thebe he came back a day later with what was interesting news, no doubt about it. questioning not just questioning, but actually the company finally admitting that the inclusion of a computer

science measure they said was inadvertent, but incorrect vanillate he had found that to be the case and also questions, patty hart's -- >> i think we're getting some arrivals from some officials from facebook. the road show begins in new york on monday. it goes to boston on tuesday. there are some additional meeting in palo alto. this idea that whether $28-35 a share is aggressive. we don't know about the

seasonality or this time of year, how much is cyclical and how much is structural. ashd what would the retail be? they are going to set aside a certain percentage for accounts. >> right. that would seem as a clear signal that their intent is to hopefully increase the participation of the retail investor. but you have to wonder the broader implications of making the retail the average guy. >> could this be good? this one is different because of average people can actually get ahold of these shares. maybe they will feel like they have a say in the overall markets. >> it's funny. i can remember the euphoria that began against seism of this new wave of internet ipos began with linkd, e in. they continue to perform

extremely well having reported nice earnings and the stock up over 6% this morning. they're using the side door, is what i'm told. so we're not going to get a sighting. >> we all want to see him get out of the car. for better or worse, we are television. you want to see him elude to it. where is the side door? let's go to the side door? >> you're going public.'re so we may go back to them again if we see another black car. >> all right, another guy who

has showed up to work, bob with a lot more than what's happening this morning. >> here i am. ipo success. no, not facebook. we're talking tilles. look, uberhics p, $15.50 the price is at. indications now are 15-13. intense, loyal brand names and this is uberhip, possibly full of good looking men and women in their 20s. have you noticed how well, for example, annies did? anies, i think it priced at $19 several weeks ago. it closed at $35 on the first day. tumies priced at 18 above the price talk. it closed at 26 throwers on the first day.

so just increase the indications. 17-19, two days ago, they were talking $11.50 to $13.50. not all of them are working, but ones would have these intense loyalties. by the way, speaking of facebook, thanks for bringing it up. facebook sucking the potential out for not next week and the week after, but potentially for many, many weeks. the important thing is i don't see any ipos the week of the 14. th. that's a big thing here. finally, on the jobs report, the worst of all possible worlds here. not weak enough for qe 3 and the overall trend is worse. by the way, low job creation and low unemployment.

finally, the weekend, france and greece, the question is how are the machlett markets going to meet and greet. we'm talk more about that in the next couple hours. >> hey, bob. yesterday, a lot of the sales at a lot of the firms that are involved in the company's public offering, they're being redirected to facebook. it would be terrible to go around that time. >> they won't answer the phones, that's exactly right. >> yeah, exactly. >> let's check in with what's going on over at the nasdaq. the latest from midtown. >> good morning, carl. the jobs report, clearly the market report. expect another day of cautious trading as investors digest that lackluster nonforeign pay r08 number. one out performer was wholesales

to see sales raise its full-year guidance. j.p. morgan up grating to overweight. our trouble stock of 2011 reported a surprise quarterly loss, but it did raise its profit out look. that's primarily due to a decline in production cost. that komed actually help the company in the long run. but take a look, still down better than 40% year to date. >> guys back to you. >> thank you very much. jobs number for april coming in weaker than expected. the unemployment rate did fall to 8.1%. let's get the first reaction from the white house this morning. first on squawk on the street, allen kruger, chairman of economic advisors. >> good morning. >> hard to put a good face on 11 a, although i have a feeling you're going to try.

with every relate, we try to get a step back. i think we see a pick which you are of the economy healing. there was a big revision to private sector jobs last month. a 45,000 revision. over 800,000 job haves been added this year. this is the 26th month in a row where we've had job growth. >> is this consistent with the trend that is in the 175, 200 rage? >> i don't want to put a specific figure on the trend. i would say, given the problems that the u.s. economy has had over the past decade, probably had been building for quite some time. we need faster job growth.

>> dr., what's your take on this month's jobs with number in terms of pulling into the month of march? it seems that if you take a look at the broad numbers, a lot of industries across the board didn't higher it. it wasn't just construction. so do you see a weather impact here? >> you know, that's one of the reasons why it makes sense to look at a few months together. we have seen slower growth than we did in the winter. that's possibly weather relilted. these numbers are volatile. i think looking at the past three, four months together gives you a better indication of where it's headed. and we just want to continue with that progress. >> dr. kruger, the labor participation rate fell to 63.6%. that's the lowest that it's been since 1981.

partly demographic trends have affected labor force participation. the unemployment rate has come down since august from 9.1 to 8.1%. i think the thing to keep an eye on is job growth. we need more jock growth and the president is trying to do the things to hasten job growth. >> it does seem that every time we seem to have momentum behind it, it slows. it happened last year and seems to have happened this year again given the first quarter numb barbs and what we've seen in terms of slowing with the ebbed ophth first quarter. why is that? why do we seem unable to sustain strong momentum in terms of job growth.

the economy is cannellataing to go in a positive direction. i think we'd be having better growth. but, to me, this is an indication that the economy is continuing to heel. confidence remains strong, in spite of the increase in gas price that is happened a couple of months ago, although since moderated confidence remains strong and i think that's a helpful sign going forward. >> a lot of the discussion in our area this morning, about the rate itself, the unemployment rate and the degree to which it's used as a political tool. do you think it's disingenuous

to use it as a talking point to say it's down a full point from 9.1? >> my job is to look at economic data coming in and disearn trends in the economy. the household survey is very volatile. we've seen a 1% drop since august. and that is primarily a result of more people finding jobs. long term unemployed. did they find jobs? or are they expiring? >> i'm sure it was a mixture of the two. because we've extended employment benefits, that's help to stay in the job market. that's a good thing. as people's benefits are inspiring, we may see some leave the labor force. that will affect the measured unemployment rate.

in some sense, the measured unemployment rate was frob probably raised because of extended benefits because more people stayed in the labor force who, in ordinary times, when benefits were not extended, might not have stayed in the labor force. i think it's also helped the unemployment. >> you know, dr., i'd just like to come back one last time to this idea of a loss of momentum. i'm not the only one questioning it. a loss of momentum. you didn't want to answer the question initially, but is there something going on? is there a lack of comforts, perhaps, in business leader who is are not hiring as much as they might want to? or something else that you can point to that, again, speaks to this lack of consistent momentum in job growth.

we're sering some signs that confidence remains strong, as i i said, in spite of the gasoline prices. we're focused on trying foe continue the economic expansion. >> so i think all of those are positive signs going forward. but we know there's a lot more work to be done given the magnitude of the problems that are in the economy and had been building for several years. >> dr. kruger, thanks for your time. >> thank you. >> allen kruger, talking about jobs number today. you see tiles just opened for trading, guys. >> that was the reason for the applause behind us, no offense, dr. kruger.

>> ewe get to see the people who started these companies a while ago. talk about them. here about their stories. bottom line is this. 11:5 $50, 13:50. opens here at 18.80 delores. congratulations. organic foods maker annies. you don't have to have a cloud computer. you need the right pricing and a low-t of people standing around here.

guys back to you. >> all right, thanks a lot, bob, we'll keep an eye on what tilles does today. we'll get some reactions to dr. kruger's comments about jobs. good morning, rick. i know you were fired up on squawk. >> well, you must have to be aneb reuated to a have spin on this. looks great, less people working. and i could talk about labor force participation rate and i have for months. but let's have some others weigh in. he said more than 4/5 persuaded adults they don't need a job or the job they could find is not worth having.

that sums it up. whether you're looking with adjustments and revisions, the patterns is no matter where in the day you look, it's trending in the wrong direction. it is nothing to brag about. although every major news out let, and i've watched the local news. it's disingenuous and not accurate. we have a structural employment problem. that was a tweet. i think we said it two and a half years ago. >> primarily because of the drop we've seen, we've actually seen it go below a hundred bucks a barrel today. >> that's the first time we've seen that, melissa, since february. and it's at a very tender point for wti and for food prices. several factors have not helped

the situation. but they've already had great concern about the deterioration. and we saw food prices go lower overnight. the knocked that we already had seen that week ism psammophiss data. the fact that we have robust supplies or ebber gee agencies pointing out that the supply picture has eased. all of these are factors. at to that there's some con sworn about the margins that will come from the cne now extended to august fifth. thank you very much, sharon. cracking into double digit territory. we'll get one more check on markets. as you can see, the dow down now 70 points. a lot more "squawk on the street" still ahead.

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let's go back live in front of j.p. morgan where the facebook executives have just arrived for the teaching today. kayla? >> melissa, they did depart, morgan stanley. and i that arrived through a back entrance. we have confirmed that ceo head of fract and likely another product chief support are in attendance today. now, right upstairs behind me on the second floor, currently, the executives are giving speeches. this's a lot of applause and thebe they'll go forward from here. by now, the entire sales force is likely. it will then turn oaf to a q&a where the purpose is to transfer the entire from top to bottom to

make sure they know what to say when any client calls about this name. guys, definitely a marquee ipo vanillate definitely a vacuum of sales people. >> on wallstreet, that's about as exciting as it gets. in a good way, essentially. thank you very much, kayla. simon is here with a look of what's coming up in the next hour. >> good morning. we've obviously got to talk about jobs relate. you've had big movings in oil over the last two and a half months. what do the numbers today tell us about how you treat that moving forward? we've got linked in ceo later in the next hour we'll debate these very lofty valuations which we talk about all of the time. and, of course, explore how you could get your hands on face book shares at the ipo, possibly

within the next week or so. >> obviously, a big story. last night, it's one of the big gainers, ironically, on the s&p today. it is an interesting move, you know, via stock in a beleaguered sector. it's still up 19%. the s armed p has spent over a percent. looking at bank of america shares, i see them well below $8. and morgan stanley has been giving elata up lately, too. that, now a 16 thelarches stock. that was $21 not long ago.

take a look at the significant percentage loss. they have not been a good performer lately. >> they're considered higher than we've seen in the european banks. >> state department saying it's getting an application for a new pipeline that i think would travel through the state of nebraska and that they will use a third party contractor to assist with the review. straight ahead, we'll show you how to play today's job's number. and then later, one of the biggest names in jobs. the ceo of linked in for first quarter results. that's ahead. back in a moment.

welcome back to "squawk on the street." taking a toll this morning, take a look at where we stiffened right now. 13 rksz 110. s&p is down almost a percent. the nasse doc is down by one. we're also seeing selling on small caps by more than a percent. we're also seeing energy stocks very weak.

>> let's get to our road map. april payrolls coming in weaker than expected. but there were some upward revisions for both february and march. how do you play the number? we'll exploreso some ways comin up. >> linked in soaring. find out what two analysts have to say. >> is wall street sorting president obama? a new york times tells his story as the president pushes for campaign contributions for the 1 prnt. >> time for now a closer look. senior economics reporter back at headquarters with all the analysis. >> yeah, an interesting life-support. a clearly disappointing jobs report. but upwards that maybe be lower expectations taking the sting out of it. the level was low at 115,000, it's just all hope should not be abandoned for the jobs market.

here's some of the goat things. 53,000 plus 21,00 avenue ragnell weekly hours before the recession. manufacturing hours were up along with manufacturing hours overtime. the unemployment rate did decline down to 8.1%. mostly education workers, there's little change if you take it out. service is 116,000. that's a bad number. it needs to be 180-200,000 to really power job growth. transportation workers down 17,000. that was bus drivers, folks. we can talk about that a little bit later. here's some of the good reactions.

no information here to move the fed for inflation. over at board of arbitration tig, dan greenhouse is worried about the trend here of two months of weaker than expected job growth is dangerously close to a tribade. a third point would put an explay maciol point. another springtime swoon. here we go again. you can see if you look over the left what happened in 2011. it declined in may until it came back up. some factors here not as bad of a decline this time. buh is this the deja vu all over again? thaw's one factor that could be something that would reverse itself. and i have to say, carl and melisa, if you have any thoughts about where there is a media

conspiracy to hide the bad news, it strikes me that there will be plenty of discussion. >> i think there already has been some discussion on this very channel. >> yes, the idea that there's some sort of a conspiracy strikes me as a bit of a fantasy. >> we'll see later on. >> thanks, steve. let's bring in michelle meyers. steve will stay with us. michelle, good to see you. happy flied. >> happy friday to you. >> the number was below your own expectations. i wonder if you could pick up on steve's point? >> i think that we're seeing some volatility in the numbers. partly due to the season of distortions. as steve noted, a lot of the sector saw some choppiness. he didn't know that the leisure and hospitality was as opposed to. construction jobs are weak. so i do think you have to be very careful.

that's not gang busters, but it's not a recession, either. >> yes, i saw one titled weak, but not weak enough. os tensively, weak enough to get the fed involved. they did talk about additional policy if, in fact, you saw market weakness in the jobs market. is this enough for that or not? >> i think that's exactly right. today's report is going to leave the fed in a wait and see mode. we need to see growth slow from here. it's the acceleration activity. but at the same time, the data is not strong enough to warrant tightening yet. oolite really important thing is the wage numbers. wages were flat. so that's showing that even though we're seeing some job growth, clearly it's not sufficient enough to really

matter for price pressure. >> how does this dove tail with the cliff that your economics team is warning abatis? here we are. we're muddling through. and as you mentioned, the data is sitly not strong enough. >> it means that the economy is more vulnerable. and that uncertainty. the underlying story of our view, and what we will see, is a lot of uncertainty as to how to deal with these policies, which is going to leave the business community on the sidelines. and we think that can start to show up in business decisions, come this fall. so we're seeing some slow down and come along the economy. and then you get this uncertainty factor which keeps businesses on the sidelines. so we're quite concerned. >> michelle, can i just focus on the 141 million americans that

are actually in work? it's very unpaletteble when you have unemployment this high. the fact remains that when you have these people, many of those 141 million people have higher disposable incomes probably than they have ever had before. if they're employed in a big corporation and they're able to mortgage, their major cost falling hugely. for a stop market, what does that piece of the equation mean? >> it means that there's parts of the economy that are doing better. they are benefitting by the fact that you're seeing somism provement of financial welt and it's very cheap to borrow. if you have the ability to get financing, it's very cheap right now. but by no means is that a widespread phenomenon. that's what you need to see.

you need to see the entire economy doing better and finding job tinteds and seeing higher income, which is not the case. >> one question, did you nail the number? this week we asked you to tweet us. and, rillet now, our squawk on the street team is actually painstakingly going through your responses to find the person who nailed 115. the reward is this hat autographed by the squawk on the street gang. check your twitter account. >> today's job number will leave many investors with one question for trading commodities, metalings and bonds. is the world economy so full of excess can passty, almost on a permanent basis, that we need to slash expectations for inflation?

importantly at a time it would appear when both the ecb and the fed may be walking away for more to artificially inflate asset prices. look at the charts. since late february, bouillon has fallen 8%. oil is down the best part of 7%. and in those two and a half months as treasuries eventually rallied. the yields on the ten-year has fallen almost a full half of one percent. allen, before we go further, we should mention where we are, of course, on the softs. >> well, i'm not as disappointed in the data from unemployment as

i am in the price action that you eluded to. this whole first quarter in commodity, as we've been drifting lower, unable to find a bottom. if you look at coffee, cocoa, sug sugar, orange juice. we're trying to look and see a lean on these levels. one of the things we're going to talk about, the key component is the dollar. that's going to be very sue portedive for these commodities. >> david, what is your outlook for the dollar? >> i've been quite bullish on the dollar, particularly against the euro for some time. but it's really not going anywhere. the data today doesn't move for the fed much. the economy is kind of muddling along. the euro zone, probably not a whole lot to surprise markets with a change of government in france. all in all, i think we're kind

of range bound. we're in a 130, 135 range on the eero. i think right now, i think we're on the downside a little bit. >> an underpinning where we might go on the dollar is clearly what's happening a to qe and secondly to market interests. this is a huge move in the bond market. this is a huge reassess knelt. half of one percent on the 10-year yield. what are your thoughts on where we are with inflation expectations. >> inflation expectations actually came down following the employment report. but not a lot. it keeps treasuries in a very tight range here. i think we need to see more weakness to get down to the higher prices we saw in early february which was equated to a 170. i think the range is still very much in effect in treasuries. we're going to need to see more weakness to see furtherer strength.

i think corporate bonds are still the best way to play this. i think from a reward to risk level, there's a lot of potential buys here. if we can look, we've got a lot of potentials here to see if these supports will hold and make sure this floor doesn't fall through. you've got to look at the crb. last week, we were at the lowest point in four months. interest rates remain low. to get rid of the jobs number, you've got to remember that 10,000 people fall out of the labor force every single day and they're scheduled to do so for the next 19 years. that's 3 million people a year that are retiring. >> david, you talked about the range bound u.s. dollar. at the same time, we have u.s. elections.

how is currency setting up? >> since the debate on wednesday night, the spread between them has narrowed. but i think markets are well priced for whole on victory. that's a bit of a lurch left. we'll have to see how he can break the shackles in the direction that the euro zone get tithes. >> david, the greek election on the demand from the rest of europe and then a stand off. >> well, greece is sort of in a whole different yoon first quarter. verse. the politics there matter in the short run. but the underlying economics of greece, there's no way that greece is solvent.

have a great weekend, guys. >> let's get over to brinell back at hq for a market flash. seeing some weakness in the dow. seeing some weakness in apple. >> yeah, in fact we're going to take a break from stocks just for a moment. i want to focus on the keystone pipeline. you know it. once obscure, and now kind of a flash point, as they say. it was another route submitted by transcanada. remember all of this environmental concern? the president sort of tabled the discussion. the decision on this submitting a new route that goes around some of the more environmentally sensitive areas that was linked top a hub for transcanada. the state says it's going to go ahead with its own review. we're going to see what the federal government does.

it basically said hey, they think this should get it done. i'm bringing it up, guys, because it's jobs friday and they're saying thousands of jobs created if we can get this thing belt. >> thank you very much, brian. take a look at tilles which is making its wall street debut this morning. almost 18%. ipoed at 1550 a share. currently at 1827. >> i noticed you haven't actually been been given a tilly's gangster bandanna. i thought i'd give it to carl who would know, as it's the weekend. >> i think you do the triangle first. >> am i inside? east coast? west coast?

>> thank you. oh, very nice. very nice. >> still to come. linked in rally. quite a run up with the networking web site. here is the stock valued or not? we will explore that question next when "squawk on the treat' conleys right back. with rent2buy from hertz car sales, you skip the lots... and pushy sales people... it's a fast, easy way to buy a used car. three days to try. zero pressure to buy. it's just another way you'll be traveling at the speed of hertz. yeah, scott. i was just about to use... that's a bunch of ground-up paper, lad! scotts ez seed absorbs and holds water better. it's guaranteed to grow grass anywhere, even if you miss a day of watering. [ scott ] seed your lawn. seed it! they sound awesome tonight. and when i do find it, i share it with the world.

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the dow is down 111. s&p and nasdaq are seeing the biggest one-day drop since the 13th. not the most dramatic day, but certainly more than we've seen in the past couple of weeks. >> yeah, we want to talk about a big mover in today's session. that is linked in. linked in shares are surging this morning after announcing that a plan to acquire parenation surveys slide share. tim is an analyst. william blare. herman. guys. it's great to speak with you both. herman, linked in from 140 to 125. you say as new sales hires become more productive, linked in will gain from this. given what we've seen, do you still anticipate that sort of ramp? >> aq salutely. i think there's a lot of secular growth goings on.

they only have about 10,000 corporate customers today. there's about 2,000 businessies for them to go after. it's more secular. you know, hiring will help with that, as well. herman's done a bye rating on this stock. what do you see as sort of the barriers to you ranking it a bye rating at this point? i think the economy in general is gradually improving and the company is going to grow extr e extremely quickly which is what you saw in the results last night. the challenges with a bye rating, in my view right now, i know that you have to look out four or five years and start discounting back in terms ophth value of the stock. and what i'm looking for to get more positive is signs that not just the number of members are

growing extremely quickly, which they are, or that the number of companies adopting linked in is happening. it's really rounding engagement of the members and the level of expenditure within the companies. if you start to see that, i think you can argue for a much longer period of hyper growth. but thus far, they're turning generally flattish. which is, again, what you saw last night. that's one thing that i'm looking for to get more positive. this is certainly a story stock. so the evaluation can get thrown out the window in the short term. herman, why is the engagement of the user not as important to you or perhaps are you seeing dwarfed things from the number that linked in as reporting?

i think linked in is not comparable to facebook or something like that. they spend 16 minutes ada. but the value that you're spending on linked in, you're not playing games. you're not playing farmville. you're actually going there to have a purpose for your job. and that level of 15 anyominute engagement is very high value. >> herman, you mentioned facebook. i'm curious, can you make a comparison of how many minutes? can facebook simply turn the swich and get into the same business? >> i think you have to separate the linked in platform into a couple different pieces. obviously, the marketing solution side is going to compete in many ways with facebook because it's a traditional digitodgigital busi.

it's not something that facebook is in right now. there are some start up applications to bring highering solutions into that business. there's been a historical impediment that many people want to keep their career separate from the traditional things you see on facebook. but that is something that people are going after. right now, i wouldn't consider that a huge risk. we should know that in the next hour, squawk on the street should be speaking to jeff weiner and whether or not facebook going public will actually lift the valuation of his own stock. carl? >> i'm putting america back to work this jobs friday. some companies you know are out with some unique job offerings. we're going to tell you all about them. keep it here on "squawk on the street."

first, a look at the markts. the dough now down 115. the biggest one-week loss since mid december, 20 weeks ago. >> we should be doing a lot more on both. zap technology.

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our fastest way to return your car. just note your mileage and zap ! you're outta there ! we'll e-mail your receipt in a flash, too. it's just another way you'll be traveling at the speed of hertz. take a look at the sell off under way on wall street. the worst of the three major industries down by 1.5%. the biggest weekly drop on the nasdaq since mid december. in the s&p 500, we're seeing a

decline of 1%. we're seeing weakness in the financials of bank of america well below $8 a share right now. and also the energy stock of oil flirting with that hundred dollar a barrel mark. we are seeing energy down by 1.8%. so once again, it's broken before today's session. let's brick in our director of floor operations. great to have you with us. is this what you had expected given this was not the worst-case scenario that you were laying out for jobs report? >> it was for a degree. i think that the revisions did change it somewhat. but if you had to drop the payrolls and an equal drop in unemployment, i think that's what the market is somewhat concerned about. drilling a little further, it's flat. even the people with jobs don't seem to be making any money.

i think it looks like the death model may have added a couple hundred thousand. here we have lousy growth and all of it may have come from the guesstimate of the bls. >> luckily, we're going into a weekend where there's no uncertainty and relative calm in europe. >> yes, we have two key elections coming up. and as simon has said and i said earlier in the week, well, everybody is looking at france with the majority of people looking at france, what's going on in greece may be far more important. it may be an almost lack of direction. they have some radical parties that look like they will be getting into parliament. greece is not stopped. it's only been postponed. glu be to come back to the central banks, yesterday you have them giving nothing away in terms of extra qe. even with the fed, now the head of the san francisco fed who is at the dovish ends is saying no

qe three for now. so the central banks are giving the impression that they are walking away. >> well, i think they're probably handcuffed. here in the united states, ts an election year. the unemployment rate going down. you've already heard people in washington trying to make hey of that. so if the fed comes rushing in saying hey, we looked at the real numbers. people are going to say hey, wait a minute. is that for the election or the economy? >> so what is support here? are we back to 1370 sf what's the magic line? >> this morning, we were going in at 1380. they broke that. i think you would head back to 1370 areas, 1370, 73. you break 13670, that will turn the charts around pretty well.

it's tough to say. you've got apple and the financial sector on down. and what's going on in the oil market is very intriguing here. i don't know fe that's all economics or some of that is politics. that has hurt the energy stocks for two straight days. >> and i like how you're pointing out tomorrow. sunday is the anniversary of the flash drive. >> well, at least we're close. i did notice that that was the anniversary of the flash crash. >> nice to see you all. we're cashing in there for ups. coming up on the program, facebook gearing up to make its case for the latest ipo. the latest on the networking site and how they say you'll get

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tillys expected to come up 20% in its first hours of trading here at the new york stock exchange. $15.50 a share. crude oil falling and holding below a hundred dollars a barrel for the first time since early february. oil trading around $99 right now. godman sachs reporting to roll out a bond trade with lower fees called g sessions. the move could help rival trading values. >> ron sullivan has a market flash for us. >> simon and melissa, i know it's right on the screen. this is not one of those names. dolby, you know them from the music engineering technology. coming up, beating the street. guidance is pretty good. but maybe more important is they're making a deal with microsoft that dolby's digital

products will be in all forthcoming machines. you know who's coming on street signs today? vanilla ice. he's a guest. >> ice, ice, baby? are you serious? >> he is. he's on street signs today. >> is he doing a car commercial? >> isn't he a carpenter now? >> he's got a very successful home flipping business. i'm not kidding you. he's also inked up. >> we were going to have celo on the show today but unfortunately, his grandmother is ill. >> liet's have a shout out. i think this is important, the price action on oil today. down $3.34. it hits inflation. but let me show you the market indices. the ma most remarkable thing here is the breadth of the move

that we're experiencing. the mark down in tech, in energy, in consumer durables. let's look at here we are on that figure. the ratio of advances to decliners. 5-1. and over at the nasdaq, i imagine it's more pronounced. let's have a look at where we are there at the nasdaq. yeah, there you go. carl, over to you. skbl gl thank you very much, simon. let's see how some traders are rejubilateing to the disappoi disappointing jobs numb. richard, good morning. i see dow down 130 or so now. at what point do you think this is -- is this orderly? and at what point does it stop becoming orderly? >> i think this is orderly. if you take a look at the jobs number, we came into the market flat and looked for an extreme move with the jobs number. we didn't get it.

really, right now, it takes 2 e off the table. >> but i think the equity market is responding to potential changing of the guard, if you will, in france with this election. we don't seem to be talking about that enough and how potentially, that could be trouble for the eu. i think that's why the market is responding not so much the employment data. we were right in the middle of the channel. we looked for a potential hundred k below number. perhaps that would have been very good for commodities. here we're in the middle. >> yeah, let's talk about crude for a second. it's either about -- we're about to take out the february lows. is that about jobs? is that about supply? >> i think it's all of those, for sure. i sent back a monthly chart going back a couple of years.

every may has been an extraordinary sell specifically. i think long energy traders have all the risk in the world up here with no return. and if you're chasing yield, and you're just sitting there and the market starts to break a few levels, you're starting to lick way daylight. and then we have the cee raise the margins for the local traders that also helped with the sell off. >> richard, thank you very much. >> yeah, 9902. let's get the latest from the oil markets. >> looks like we're going back to the december lows right now. we are seeing a significant sell off as well across the board. and all of the things that were mentioned by the chicago trader are exactly what they're talking

about here on the floor. but they're also looking very closely at these technical levels for today's sell off and the reason that they do not want to have risk on over the weekend is what is happening in europe with the elections in france and greece we're down over 5% in both of these oil prices and we continue to see this sell off exacerbate as we get below these key levelings. watch traders say for the $95 level for wti levels. and we are looking perhaps we could see $100 a barely for rent. >> all right, sharon, thank you very much. meantime, facebook management is making the round ahead of its road show later in the month. it's what they call tech 234s.

the facebook brand and why it its offering could be the deal of the century. kayla is in manhattan. kayla, it is a bit of a culture class for zuckerburg who says he has no intention of profit max meesing. that's not what the guys around him tend to live for. >> yeah, you might say that, but, simon, that's not what today's meteding was about. it was about talking numbers, specifically. letting the philosophical angle of facebook be spoken for by the retail presentation that was aired last night on retail road sow dot com. we just saw the meeting. but hundreds of sales people from not only j.p. morgan, but other of the 33 under writing banks that were invited. we started with morgan stanley in the morning. the big questions are how to sell this deal. when you get a call, whether it

be a institutional clonality or a retail client, what do you pitch to them? this is basically fort knox to report on. but they were carrying an abbreviated version of the s 1 filing that came out last night. as far as mark, is there a speculation about whether or not he's been at these meetings? we know for a fact that they've been spearheaded by david who has been leading this deal all along. he's been the engineer from the facebook side. the architect has been vice chairman jimmy lee. he set up the lending agreement with facebook. the industry calls him the trillion dollar man because of all of the blue chip companies that he's lent to. we'll have more for you. guys, that's the latest that we have for you now. >> kayla, obviously there's a

lot of chatter as to whether 20 or 25% of the float might be available to retail investers watching you know. but we know that the e-traders have been there. can you give us anymore detail? >> simon, throughout the process, there's been two piece that is the underwriters have been toying with. the first is having as small a slice as possible. the other having a larger slice, which would appeal to the fact that facebook has 901 million monthly active users. people at home, day trading or just investing, want to get involved. and they didn't want this to be seen as a wall street clubby deal. if you have a smaller retail slice, then you limit the volatility addsing e-trade was a key indicator. >> okay, see you later, kayla. thank you. >> we have taken a leg lower.

the s&p is now down 1.25%. take a look at the 10-year deal here. that is the lowest yield since february 3 rte. so no coincidence as the markets have takesen a turn low, we save seen this in the bond market. >> 2.39 was the high that we had. >> a lot of people talking about the bond finally giving it up. and here we are giving it back at almost the lows we have not really seen. bringing warning traits down, though, which isays a potential bright spot. yeah, but it has yet to really take hold. >> apple is flirt flirting with $5.70 right now. that is a level that a lot of people are watching. can it hold $5.68 or so? we'll watch that certainly. meantime, coming up for dash for

presidential election cash. are wall streets shorting president obama? we will explore that question straight ahead on squawk on the street.

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where an agent can help you find the policy that's right for you. liberty mutual insurance, responsibility -- what's your policy? net flix continues to be under pressure. also ref reps to vanilla ice. netflix falling yesterday, as welt, concerned that they may have to pay up to keep viacoms epic streaming business. concerned maybe they would leave if they didn't pay more. they're now the worth performing stock. it's on track for its worst two weeks since all the way going back to september, guys. same story here. the more popular things get, the more they kind of get staken down. >> brian, thanks a lot. brian sullivan back at the flash desk. according to a featured story, the president is losing the

support of wall street titans. the times reports that by the end of january, 2008, the president has raised over $7 million from the securities and investment industry compared to just 2.4 million. the new york times reporter joins us with more on the story. nicholas, good morning to you. you call some people on wall street up and they are undecided. they are waiting for clarity. what kind of clarity do they want? >> it can often be on a policy issue on some kind of regulation. they're often waiting to see how he talks about things that are important to them. those are the people who are in the middle of actually giving the money president. a lot of people decided no way, jose. and mitt romney is our guy. >> yeah, wall street is no stranger to democrats or a

politician who talks, right? they know he's got to say certain things. it sounds like they're not too sure about which one obama is. >> i think the people who are critical of him sure which one obama is? >> people who are critical of him on wall street, a lot of them are conservative to begin with but politically there are people who feel that he bashes them in public and then in private his advisers try to calm them down, smooth things over. from the white house perspectives, those private meetings are, look, we're not backing down from our policy. we're sorry if you're offended by us criticizing you but we stand by wall street and our regulation and we're not going to back down in public from it. >> yes. and you also make the point that to some degree it's a function of the street not understanding how they actually are perceived by middle america. they don't know how bad their reputation is at this point?

>> certainly polls show that. the white house attitude is, you know, you're asking us to defend you and be a solve you. you guys should be happy we're not standing over you with the ax you're so unpopular. if we were going to be populist and political and exploit this, we would be bashing you for all it is worth and we're not. >> how deep is this, nicolas n. terms of changing people's minds not only for the vote but to open up their wallets and donate to the campaign right now? >> wall street is an important source of money for all budget officials in federal office. it's not the only one. obama is going to raise three-quarters of a billion dollars. it's not going to kill him. but it's more of a marker. and perhaps the real battleground is not the money but the super pacs. it only takes a couple dozen

hedge fund guys to pour half a billion dollars or $100 million into a romney super pac and that can be very effective. so the mind set and the swing of a relatively small number of people in this election can actually have a huge impact this year. >> before we go, let's talk some individual names. we know robert wolf, long-time supporter. roger altman, people on this channel all the time. has there been a defection that has gone public that says, no, i can't do it this time? >> dan loeb has gone from swooning from the president to writing very angry letters to his investors about the president. in a more low-profile way, paul tutor jones threw away a fund-raiser for the president in 2007 with george soros. it was a big event. it was a signal. he has gone over to the romney

side. he has given $200,000 to the romney super pac and it's a little embarrassing for the people in the obama world who are the ambassadors trying to raise money from the wall street crowd. >> nicolas, thank you for joining us. >> let's go back to the markets. there's intense pressure in the oil market. we just lost $98. it's the eye of the storm, it would appear, for the market trading across the board. even consumer staples and health care is in negative terms. preparing for the third hour of "squawk on the street." rick? >> simon, a lot of people are hanging by a thread in terms of job creation. the big story is how many people are dropping out of a labor market. market. [ barking ] appears buster's been busy.

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the nasdaq is down 1.5%. we have two bright spots in the dow 30. walmart and coca-cola trading to the upside. stay tuned. more "squawk on the street"

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all right. there's a look at the dow down 111. not quite the session lows but awfully close. s&p down 15 and nasdaq down 42.

it is paying the price. >> the fortunes have turned. google is down by 1.5%. big cap technology a favorite of these strategists going into this month. >> can i just show you oil? it looks like we're about to break $98 at the moment. this is a huge move on a single session after so much pressure recently. >> and a large move in brent, too. we'll see you tonight. melissa, here is what you might have missed this morning. >> welcome to hour three of "squawk on the street." here's what is happening so far. >> i would say that we're still seeing an economy that's improving but it's not at a fast rate. >> april nonfarm payrolls increased by 115,000. the unemployment rate, 8.1%. >> it would be great to be up to 180 but i thought we were into a bit of a slug even before this downdraft over the past couple

of months. i'm not pleased with what i'm seeing. >> not a blowout number. >> no. >> not a great number at all but, again, a lot of different things going on. >> if we're going to focus on the lack of jobs that come from construction, we're missing the much bigger picture about record earnings across the board. it's a very diverse economic expansion from a profit standpoint. >> and there is the opening bell and the s&p 500 at the top of your screen. >> when we step back, we see that the economy is beginning to expand. this is the sixth month in a row. >> no matter where you look, it's trending in the wrong direction and it is nothing to brag about. >> another really important point with today's report is the wage numbers. wages were flat. so that's showing that even with job growth, clearly it's not sufficient enough for price pressure. >> good friday morning.

welcome to the third hour of "squawk on the street." markets on a big selloff day. potentially the effects of what is going to happen in france and greece over the weekend. it's hard to tell what the market is responding to. the futures would not have given you any clue that we were in for a day quite like this. nasdaq down 44. s&p down almost 16. first solar posting the loss of $1 million in the first quarter. 400 million in restructuring costs. the company did raise their 2012 earnings forecast. the stock hitting an all-time low in today's session. we have a note, linked linkedin unveiling plans to buy a deal $118 worth earlier in the week. time to hit the road map. we had your first white house

jobs are reaction. alan kruger. we'll get your response from team romney. plus, linkedin had its first big quarter. we've been telling you about it all morning long. we'll announce our nail the number winner. of course, we'll track the selloff from bonds to commodities to the dollar. the dow down 122 and nasdaq seeing the biggest one-day drop since april 10th. joining us this morning is gordon, managing director over at rosenblat securities. >> they didn't like the numbers that came out today. there's a political angle to that. if the unemployment shows 8.1,

the populous might believe that the job market is getting better, that the economy is getting better and i think investors are skeptical of that reaction. the stock markets out of europe are telling you that and what we're seeing is that investors are saying, hey, we could be potential log jammed in d.c. come october, november, something that has not served this market well over the last several years. >> yeah, there were those that said, look, there's going to be another trade in the ten-year and clearly at 188, wherever it is at this point, it's proving to be true. >> the question is, is risk on, risk off, it seems like we're shying away from risk here today. but that being said, every time it looks like there are sell signals out there, we are not seeing sell orders and if you start to see those, guys are coming in and buying the dealerships almost without dips. it's almost like a tsunami,

you're waiting for something significant to occur, whether it's france, something happening over there, but investors are starting to get anxious oh about all of the data being thrown at them. >> you think the data versus political season this weekend, what's the mix in terms of the selloff? is it 50/50? is it 90/10? what? >> listen, i think we're into a weekend. i think always there's an element of wanting to take off risk before a weekend with the events that are unfolding over there. but i think the initial move today was because of the data and the futures that sell off, down about 500 and then just shortly after the open they got to this level and they've sort of stabilized at this level. the question is, whether we will see further follow through to the down side. certainly we're not anticipating that reversing. >> gordon, thank you for that. we'll see what the afternoon brings. meantime, mitt romney racking to the jobs number saying that it was, quote,

terrible and very disappointing, accusing the president of slowing the economic recovery. joining me is a member of team romney, andy, co-author of job creation, how it really works and why government doesn't understand it. good morning to you. thank you for being with us. >> good morning, carl. plesh sure to be here. >> the general take among not just the governor but all republicans who are against the president says the economy is just not doing as much as it could. is that the lesson you take away from this morning's number? >> i think it's clearly doing -- not doing as well as it could, doing much worse than it could. if you have 522,000 people last month dropping out of the labor force, that's a very bad sign. you've got the participation rate down to 63.6% t was over 65% when president obama took over. so we've really got an economy not responding to the president's policies, as well as intentioned as they may be. they are just not working. this president needs to either

change policies or, more appropriately, we need to make a change in november. >> when we talk, change policies, what does that mean? is it as specific as leading into a pipeline issue that we're seeing today with this renewed proposal to state, or is it something beyond that? >> well, there's a lot of things. if business -- if you want businesses to invest, which is what would create jobs, businesses are going to look at what we call the u-5 number in employment. you want to see those numbers include businesses that people who have gotten part-time jobs for economic reasons. in other words, they want a full-time job. one, the president needs to stop talking about raising taxes on businesses, particularly small businesses that come up with the way, as governor romney has, as a way to reduce those taxes. these carbon fuels, we need the keystone pipeline and free up gas and oil production.

north dakota, the unemployment rate is 3.5%. we need to do something about obamacare. obamacare has businesses scared to death. they don't want to invest because they don't know what the health care costs are going to be. not to mention the labor issues with the nlrb, where people are afraid of this trend to support unionization, as opposed to right to work states. for example, look what happened to boeing. there's a lot of things going on and policies that need to be changed but to change them we really need someone that brings a business perspective to dealing with the economy so we can see that improvement, not a government perspective and governor romney is clearly the candidate who qualifies in that respect. >> how much of the romney camp is willing to admit in the 8.1 number, for better or worse, the data in this country is not perfect but that might look statistically significant to someone around a kitchen table tonight. >> you know, what reality are we

in? we're 39 months of unemployment being over 8%. that could be perceived as anything close to a good number. that's a horrific number. we've been dealing with this for so long. we lowered the standard. >> you don't think the delta from where we topped out, to 8.1, might lead someone to believe that this economy is on the mend, albeit slowly? >> i don't think it's accurate because what you're not looking at, when you look at the percentage of unemployed, as a percentage of the workforce, right, which is what we're looking at, if you include people who have just stopped looking for jobs, that number has not improved. you're really looking at a number that takes your uncle jack who says, i'm going to take my unemployment benefits and i'm just not going to look for a job anymore. so the number -- the 8.1 number is really not a realistic number. it's not a number that businesses would look to. it's a number that gets the most

publicity. look at the stock market this morning. the stock market is not looking at this as though it's improved because they are not looking at the 8.1 number. they are investing in businesses. they are looking to see what kind of consumer demand there is going to be which is what you would look to if you want to invest in a business. it is possible that people would look at that as an improvement, but if you're looking realistically at the numbers, we're not seeing improvement, we're seeing decline and we need to do something different and governor romney has the programs and policies that could change that. >> randy, appreciate your time for that. thanks for coming on. >> thanks, carl. >> representing team romney this morning, kayla tausche, meantime, is live on the scene of the facebook meeting at jpmorgan. good morning once again. >> good morning, carl. we came to 207 minutes ago the two architects of the deal and

they have a little bit of a fireside chat after the meeting and we were able to talk to them about how excited they were for the deal. take a listen. >> the meeting went great. fabulous. >> how did it go? >> great. >> so, david didn't get a track jacket but the rest of the team did. they have the last names of the people on the deal team on the back. this bank has rolled out the team as it has come into town. the team is moving on to goldman sachs from here. more throughout the day as we learn the color that is seeping out from these meetings and how

the sales forces are really feeling about launching this deal. guys, back to you. >> kayla, the look on their faces, it's like they are stunned by the attention. i mean, i can't imagine that they are surprised. >> i can't imagine that they are either, especially after coming from a secret entrance on the way in. it's clearly something that the launch since the launch on february 1st, it's not going to slow down until they go public. >> it's going to be quite a week. kayla tausche, thank you. rick santelli is using the cme as his own personal monkey bars. good morning once again, rick. >> absolutely. tough stay in shape somehow. let's talk about the data. there are highlights that i'd really like to hit. the first one is, about 41.3% of

the unemployed have been unemployed for 39.1 weeks. that is huge and i think that pretty much says it all. let's go to another area. if we look at -- according to peter, if we look at this recovery as the greatest since the great depression, a full 4/5 is due to the drop in the labor force participation rate. that he is a biggy. it's the lowest since 1981 and you've heard a lot about it on our channel. but i have to tell you, i'm not saying it's conspiracy. i'm saying in many ways it's media complacency. i was upstairs flipping the channels and many of them were leading with unemployment, 8.1 at a three-year low and that's where it ended. and i think viewers really need to get into the nitty gritty to avoid what i call ostrich economics. it really is ostrich economics.

you put your head in the sand. let's look at another area that's ostrich economics. the federal reserve wants to keep rates really low. so everybody can do a bit better, service their debt a little bit cheaper. that's ostrich economics because, as we know, most people who need the money can't get it again and that feeds right into the blame game. how many times have you heard today, well, we understand the labor participation rate is the lowest since '81 but it's trending down. it's not our fault that the administration -- it doesn't matter whose fault it is. okay. so we've increased debt over a trillion a year for the last three to four years. but the last administration has been doing the same thing. i don't care what administration was doing anything. i don't follow people off cliffs as a rule and in the end it's not about blame, it's about solutions and i think the only way we're going to get solutions

is to send a message and the message should be about three weeks before thanksgiving. back to you. >> thank you very much, rick santelli in chicago. let's get to brian sullivan back at the market flash desk with such a severe drop in crude, brian. >> yes. talk about off a cliff. oil is off a cliff. oil down more than 4 bucks a barrel which is about the same in the percentage mode. brent and wti are down. to your point about sectors, take a look at the airlines. obviously airlines use a lot of jet fuel. the price of jet fuel comes down if fares can stay where they are. many of the airline stocks are higher today. united and continental group. u.s. airways, southwest continuing its decline. at least on a down day, one group that may see a benefit for lower oil prices. back to you. >> talk to you in a bit. brian sullivan. on the back of jobs friday,

we're going to sit down for a cnbc exclusive with jeffrey weiner. we'll talk all things in silicon valley. someone actually knew to pick 115k for jobs numbers. we'll see what led them to that rather well-foresighted call. zap. it's our fastest and easiest way to get you into your car. it's just another way you'll be traveling at the speed of hertz. ♪ where the sun never goes out ♪ ♪ and the sky is deep and blue ♪ ♪ won't you take me american flight 280 to miami is now ready for boarding. ♪ there with you fly without putting your life on pause. be yourself. nonstop.

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crude energy is down more

than 4 bucks on wti. even a bigger move on brent. down 4 bucks to 112. also, take a look at the major refiners. after reporting first quarter sales and profits that beat the streets, sales more than doubled the quarter and the company announced it would buy slide share, a content sharing site for $118 million. we're joined by jon fortt who is with linkedin's ceo. >> strong quarter, revenue up 5% above expectations. a lot of stuff to go through. i'm interested in linkedin's growth. 61% of users are overseas but

still more than 60% of your revenue coming domestic. what's going to drive that so those numbers get closer together and the employers oversees start paying you more? >> for starters, our local presence. we're seeing good momentum in some of the offices that we launched recently. and you'll see that gap close between for members and revenue. >> we've seen this job number come out today. disappointing on some levels and labor participation rate. are employers still paying you to try to find people in certain areas or are people still interested in posting the info on linkedin at the same rate? >> yes, absolutely.

as well as job postings, both continue to be strong. >> now, you announce that you're buying slide share. i understand how that helps from an engagement part of you from linkedin but talk about the business implications of that. when people are on linkedin longer, does that translate to better revenue for you? >> sure. we're trying to maximize the numbers that we deliver across core parts. the more engaged our members are, the more we can create three primary business lines, marketing solutions and premium subscriptions. >> fitting mobile also into that, then, you recently launched an ipad app. you've revamped your android and ipads quite a bit.

there's a lot of questions with facebook in how they monetize mobile. they don't get the same rates on mobile monday tie zags as they do on the desktop. your business model is different. you're getting more of your revenue from recruiting solutions. how does mobile fit into that? does that drive more mobile? >> yeah, i think it depends on the business line we're seeing good things there. and with regard to marketing solutions and ad sales, it's going to depend on the ipad development. it's going to be a good fit for the current valuation that we offer to customers on the web. and with regard to smart phones, the iphone and android environments, we're going to run tests with how we monetize those environments. >> facebook ipo, a lot of people

talking about that this morning, the road show going on. almost exactly a year ago, linkedin went public. how important is this facebook ipo space in which you operate? >> you know, facebook is obviously an important company within the industry and i think with the leadership that they have there, they have been doing the addition of a world class cfo. i'm sure they are in very good hands throughout this process. >> thanks, again, for taking the time. >> jon fortt, thank you so much. we're going to count you down to the close overseas. a little less than seven minutes time. a lot more "squawk on the street" continues after this short break.

short break. recently, students from 31 countries took part in a science test. the top academic performers surprised some people. so did the country that came in 17th place. let's raise the bar and elevate our academic standards.

let's do what's best for our students-by investing in our teachers. let's solve this. taking a look at markets, dow down 1%. the nasdaq at this point is shaping up for the worst week of

2012. largely due to declines. finally, oil positively getting crushed, down almost $4.40 and 98.18. we'll talk more about what that may mean. some larger requirements being changed at the cme. a lot of things can be contributing to that. a "closing bell" in europe, less than three minutes away. we'll get that with simon hobbs in just a moment. hey, this is challenger. i'll be waiting for you in stall 5. it confirms your reservation and the location your car is in, the moment you land. it's just another way you'll be traveling at the speed of hertz.

well, on another day we might have said we'd be talking a lot about the french elections, the greek elections. as it turns out, the subject is mostly about the jobs number here in the states. but there will be wild news this weekend. talked to simon hobbs as the bell rings in europe. >> the european markets are closing now. >> let's have a look at the map and see how we're closing up around europe. for many people in europe, it's about the job data. this is where we are. actually, it would appear some are still positive. spain was up quite substantially throughout its session. it cut it its gains as a result of what happened here in the united states. check out ireland at the top left. look at that. down the best part of 3%. what i think is important today is the nature of the decline that you've seen in europe and what that may say about where we are going. i first want to show you a major three indices in europe and the way in which that jobs data took

us down into negative territory and triggering more selling. the losses that we've had in europe are actually the losses that you would normally associate with bad news from china. in other words, this is about general global growth and a reassessment after two days and bad data on wednesday and thursday in the euro zone about whether or not you've got that engine of growth in america leading us forth. have a look at what is happening, for example, at the bottom of the london market. there are a lot of issues and markdowns there. the miners have been hit badly and hit badly after the u.s. data in the main. have a look at the german market and it's the big global he can porters. volkswagen, bmw, daimler, which

makes mercedes, those oil services stocks, smaller issues coming under pressure around europe. one in norway there at the top. obviously a lot of the projects that might have been embarked upon may not have because of the price of oil that is so high. and then as carl says, we now move into the results of two major elections over the weekend. the first and most prominently because it will change the balance of power is what happened obviously in france. it looks like the socialist on the left will win. nicolas sarkozy has managed to push the margin back down but probably not enough. the french election goes into blackout at 6:00 p.m. new york time. no more campaigning after that. reachinging out to reporters for a very early meeting at the beginning of next week.

as far as the bulls market, things are looking okay. it's seen in the german market. here you can see the bond which hit a fresh all-time high today, continues to track lower and again i will point out that the german interest rates, 1.857, despite the ten-year yields are substantially lower. let's mention greece. for many people it's the eye of the storm. monday. yes, the headlines will be grabbed by france. everyone knows sarkozy. greece may deliver us instability. two guys here. question, will they have sufficient majority in parliament to rule together if they can do a deal? who will they decide to be prime minister? can they sort their problems out? >> there is 11 billion euros of austerity that needs to come through for the rest of europe

and there are big issues hanging over whether or not that will actually happen. there are four elections. there's the french, greeks, and regional elections in germany and italy, which may be important in terms of merkel's ability to dictate. >> all right. that's definitely -- it could be the start of a new chapter in how europe handles the crisis. >> without question, the politics is changing in europe. what does that mean? >> have to wait until monday to sort that out. simon, have a great weekend. let's check out more on the energy front with crude at 98.21. unbelievable action. sharon epperson is at the nymex. >> we're waiting until monday to sort it out. if you're an oil trader, you can't wait. you have to take your positions off the table and see what

happens happens and that's what we're seeing here. everyone is talking about the elections, the anticipation of that and uncertainty is part of the reason that we're seeing this selloff in crude oil. it's the biggest one-day drop in brent and wti that we've seen since december and it's a momentous day for oil. oil has been trading around 100 to $105 a barrel for weeks and we have seen negative economic data before but now it seems that the preponderance of data, even though we had a positive ism manufacturing number earlier in the week, the preponderance of negative data on employment and on jobs in the u.s. and europe has now come to a head. couple that with the anticipation over the elections this weekend and traders just do not want to be long this market. there are some still talking about the margin requirements that will change, that the cme has instituted, and that will go into effect now in august. there's been a 90-day extension. traders say that may not be as much of a factor as of now.

the technical selloff that we're seeing, look for 97.63 for the downside. move next in crude oil, wti, and there's no support in brent now that we're below the 200-moving day average until $110 a barrel. we look like we're in true freefall mode in the crude oil market. >> sharon, busy day where you are. thank you very much. bob pisani on the floor of the nyc. we were just talking off camera and that is -- >> where is the qe 3 crowd? what happened? bad news is good news. of course, the problem here is -- and art had a very accurately, this is a worst case scenario. the fed is not going to step in with these kinds of numbers but the numbers are still weak. the trend is still down. that's why we're down on concerns of the election. we really have -- take a look at the s&p. we really have a worst case scenario here.

m muddling along here with no reasons for the fed to step in. sharon had a very relevant report. energy is the real stone around the stock market these days. looking at the e and p companies, equipment companies like cooper cameron, valero, even the shale guys are week. transocean, one of the big commitment companiy equipment companies. s&p has been down 2% for the equipment. the important thing is we're not seeing anything at all no. energy at all from these companies and, of course, this is, in a sense, good news when we see these energy companies down because generally it means we're going to get better news on the gasoline front. take a look at how the energy stocks have disassociated from the market. ever since we hit a top at the end of february, put up the s&p and energy indeck, i've been pointing this out.

you see a down trend that is continuing and it's accelerating here in the last several days. that's splitting off from the rest of the market and it's going to cause some real problems here. let me just put up the gasoline prices. carl, of course, lower stock for energy stocks, it's good moves. let's hope that has an impact on our economy, that certainly would be very good news. meantime, all of the concerns about earnings, we're just about done with earnings season. can i point out here, 85% reporting waiting for the retailers. earnings growth, this is the highest that we've seen yet. everybody said that it's decelerating, it's terrible. last quarter we did 8%. it's statistically very, very close. there's no dramatic disaster 67 are beating the average. the revenue growth is 6%. is this good? bad? this is the ten-year average in the s&p 500.

6% revenue growth. there is no disaster going on in earnings. this is the one thing i'm a little worried about. they have given us a pass in the next several quarter. come on, we're going to beat 1.6%. they are expecting financial stocks to finally start earning a profit. the second biggest group in the s&p 500. they better start getting loan growth. that's where we're going to start having problems in the near future. as of now, earnings are holding up and let's say that's one reason the stock market has been holding up. not today, obviously, but overall. >> the fourth quarter is what we have doubts about. >> watch the financials. most of that is financials. a little bit from technology as well. >> thank you, bob. let's get over to rick santelli in chicago. rick? >> well, thank you very much, carl. you know, i always try to bring things from the fixed income side that could give traders and viewers an idea of where rates may go and even some good and bad ideas. the current talk at treasury is,

should they issue floating rate notes, frns? and my good friend weighed in on this and we're going to throw on the screen what he said. i don't get why the treasury thinks that short-term rates at zero percent and they only have are one way to go and that's up. treasury should be between perpetual bonds until the market can't stand in any longer. i was wrong. mike norman is my guest. you don't quite see it this way and i'd like to know why. >> i think it's a dumb idea but i don't think it's a dumb idea for the same reason as jim. i think the treasury should be issuing nothing greater than a three-year bill. anything that it issues, what is it, it's just a reserve dram. the main reason why i think it's dumb, what is a floating rate note any way? it's rolling over. it's the same thing as rolling over a regular t-bill or

short-term not and they have been doing that in the trillions and trillions of dollars for years and that's going to continue to go. even if they couldn't turn it over, it wouldn't preclude the government from spending anything that they need to spend. they are crediting bank accounts. if this is an enticement to investors thinking that they will offer a higher rate rng the government controls the interest rate any way through the federal reserve. all around it's dumb. and the fourth thing i'll mention is that if they do raise rates, they are going to be feeding inflation because the government is a net payer of interest. it will be just boosting interest income and that -- if it's not met with an increasing output, you're going to increase inflation. it's just a dumb idea all the way around. and i don't understand why treasury is proposing this. maybe you think they are going to run out of money if they do it's completely redick cue

louse. >> let me get a word in and i respect your comments. i look at it from a different vantage point. we have record amount of dead held by the japanese, chinese, and uk. we have a 25-year basis note. the fed can only control the overnight fed rate and discount rate. everything else they influence and their influence is large. they buy over 60% of the issuance by the treasury and the most financial relationship in the history of our country, in my opinion. but what i'm worried about is, we're currently spending hundreds, hundreds of billions of dollars servicing our debt. and the guy who created the floaters is a guy named harvey campbell. if they listened to him, they would have saved about $3 trillion. his comment was, wow, you missed the boat, guys.

not really a good decision. >> the analogy between an individual and the federal government is completely wrong. i won't get into that right now. but let me ask you a question. in the last seven month, do you know how much the government has actually rolled over -- you know, how much it has paid back in the last seven months this fiscal year? do you know that number? >> i know another number. 15.8 -- >> wait a second. >> 1.58 trillion is the national debt clock right now that's making me roll over. carl, are you going to roll over with me, buddy? >> i don't think you -- >> it doesn't matter. i don't care what's maturing. i don't care what they are issuing. i just know that 15.87 trillion is like getting blood out of my wallet. >> 38 trillion in the last seven months which, by the way, is 2 1/2 times -- >> you're a good man. you're a good man. you remind me of my relatives at

thanksgiving. you can't get them to quiet down so you bring out the drumstick. >> the government pays its debt the way it pays for everything else. >> by issuing debt. >> it's marking up bank accounts. >> you're right. our government is -- >> kind of get you two guys together in the same room. thank you, rick santelli, in chicago. a quick check of apple. the momentum stock is having a severe effect on the overall composite falling below the 570 number. groupon went public at 20, and back to 9.94 which someone called on twitter a sick move. it's been a difficult few months for grpn. as we go to break, one more look at some of the winners and losers ahead of what will be an

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coming up in the half time report, apple cracks. a list of stocks you should bias the market sells off.

plus, we're trading the facebook frenzy and dr. shack got his doctorate in leadership and has advice for corporate america. lots to trade at the top of the hour. now i guess he's the big doctorate. >> thanks a lot. we've been telling you about it all morning long. after hundreds of tweeted entries, we have a winner. average for the nonfarm payroll was 145,000. from danbury, connecticut, matt mclain is on the squawk line. >> caller: good morning. i've been a faithful watcher for many years and this reduces my bucket list by one. >> 115, what led you to it and to so much degree, nonfarm is a shot in the dark but you must have seen something coming. >> >> caller: well, it was a bit of a shock in the dark.

i tried to come up and in truth i came up with 151 first, not based on any charts or anything like that. just on a hunch. and 151 seemed too close to the consensus. let's reverse that and gave me 115 and ta-da. >> some might argue that's what they did over at bls but that's another story. you've been trading from home for a while. and you've been watching us for a while. you want to put a day like today in perspective? what does it make you feel about the rest of the year? >> well, i tell you, i've been one of the elusive retailers who never left. i've ridden through the good times, ridden through the bad times. and i learned the meaning of margin calls very seriously in 2009. but a day like today is just another ripple in the ocean of trading and i think that people can still be positive in the long run and look to the future. >> you do bring up a great

point, matt, and that is, the question of when the retail investor comes back and. and i mean in a significant way. when you talk to friends who are maybe on the sidelines, what's the number one thing that keeps them on the sidelines? >> well, i tell you, a lot of people just got plain scared and had to walk away. they saw too much of their savings being decimated and i think what's going to bring them back gradually is just getting a foot in the water and realizing there's no other place that they are going to get a better return than in the market. so eventually it's going to be again. >> well, people look at japan for better or for worse, risky assets may be the way to go if you want to stay afloat long term. matt, congratulations again. this hat is on its way to your house. enjoy it and wear it well. >> caller: thank you, carl.

i'm treasurer it for years and years to come. >> very nice. matt mclain joining us. thanks again. the kentucky derby officially off to the races. we'll sit down with the ceo of churchill downs after a short break. break. hem i almost never go to the gas station, despite the fact that they see me driving to work every day. i fill the volt up once every -- maybe once every couple of months. and that feels absolutely wonderful. i'm hardly using gas, but it's there when i need it. anybody that thinks that this car doesn't have solid performance, hasn't driven it. there's no other car like this on the road. ♪ how math and science kind of makes the world work. in high school, i had a physics teacher by the name of mr. davies. he made physics more than theoretical, he made it real for me.

we built a guitar, we did things with electronics and mother boards. that's where the interest in engineering came from. so now, as an engineer, i have a career that speaks to that passion. thank you, mr. davies.

the 138 run for the roses set for tomorrow afternoon and yoened by a special guest, it

never gets old, does it? >> it does not get old and joining me is bob evans, the ceo and chairman of churchill downs. thank you for joining me. >> thanks for being here. >> last quarter you had said, and we have seen it, that racing was not your core business anymore and it almost happened sooner than people would have thought to get to other forms of gambling. is there any other time that it's not part of your racing at all? >> the business model is changing. we do a lot more gambling with regional casinos and online gambling but horse racing has been our core, will always be our core. i'm sure i won't be here 138 years from now but i will be and we'll still be doing these interviews. >> does it become more costly to put on a race like this because

the track -- when you're looking at the costs making as much money? >> there's a little bit of that in keeping that all up to the level that my customers expect, that's where the real expense is. today we have a huge expense and the capital cost is always there. >> 165,000 people growth a record in the handle. >> that's a good question. i don't think we've ever disclosed that. >> thank you for joining us on cnbc. >> my pleasure. >> back to you, carl. >> darren, thank you very much.

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get a take away from rick santelli with a few seconds left here on the east coast. rick, the president is talking about some of the jobs numbers

and he says a million jobs in the last six months alone and, in his words, that's the good news. >> ostrich economics. you know, listen, this isn't a political statement. i want to see more people with jobs. and a that statement cannot be made we lose people. and even with the qe element, i'm impressed. i don't want to see equities down. but look at boone's. near record close. 187. the credit markets are telling you, there's a lot more moguls to come. have a good weekend, buddy. >> we have a few seconds left. you don't always agree with the fed but i think people would argue that you understand the fed. is the data weakening enough