the business leaders we talked to at this point, too. >> i told him, you haven't liked qe all along, whether you want to keep with the taper, that's one thing. we'll see whether yellen and the rest of them stick to it after these lousy numbers. we'll see. >> good luck, joe, out there on the green zone. >> thank you. >> make sure you join us tomorrow. we'll see you later. be sure you join us on monday, "squawk on the street" begins right now. good morning. and welcome to "squawk on the street." i'm david faber with jim cramer. we're live from the new york stock exchange we'll hear from carl quintanilla live from sochi. weaker-than-expected job growth for a second consecutive month. january nonfarm payroll is up 113,000, well below forecasts. december's gain revised higher by only 1,000 jobs, that was up 1,000. the unemployment rate did tick lower last month it is now 6.6% and the participation went up by a couple of -- 0.2 percent which

people may be cheering about. let's look at futures. you can see it is a positive response to this after initially the market was selling off just a bit. no taper of the taper perhaps. let's take a look at the ten-year talking about taper and qe. you can see not much change there either. and over in europe a reaction, not a reaction, how is the day working out? well, pretty well after what has been generally a positive week for the various markets in europe. all right. let's get to that jobs number itself, of course, and talk about it, jim. you know, market reaction now seems to be positive. don't know what that's playing off of. maybe the tiny tick up in the participation rate after being down more or less for decades it would seem. i don't know. >> when you listen to the coverage that we were hearing before on "squawk," mr. dortmund spoke and cvs and said the traffic's not there because of the weather and the weather was

the worst nationwide since 1977. now, typically you've notes a ter ri asterisked these numbers. do you know what, david, i actually think the weather is not a bad excuse. >> but you had construction that was positive. which would seem to be the thing impacted perhaps most by the weather, so i -- you know, this whole question we keep coming back to weather or slowdown. weather or slowdown. >> but i know that florida and california for a lot of the retailers i deal with were very strong and those were two areas that were not affected by the weather. david, the participation, is it going to be one of these ideological issues where we say losing long-term unemployment benefits brought people back to the workplace. it's ideological to say that, hold it, if they get them off the dole, they finally look for jobs. it's a sensitive point. i think we should bring it up to the labor department, when we have the labor department secretary, it's always a very substantive interview.

>> always. 63% now is that proportional working age americans who have a job, are looking for one from 62.8% in december. >> i know. >> 35-year love. >> why is the government losing jobs, dave? 28,000, 29,000 government jobs and the federal government's been the enemy pretty much you can argument republicans and democrats, job formation, confidence. i don't know if you ever heard former federal chairman greenspan talked this morning, talking about confidence. does confidence matter when you talk to business people. business people by nature are cautious because of what happened in 2007, 2008. they don't want to be the last people to hire ahead of a downturn. >> they don't. do you know what, 2008 is going to be -- it's six years ago now. >> 1933. >> come on. >> come on, david. your grandparents and parents did not think about 1934, '35. i heard about the great depression -- >> for decades. >> -- for decades. >> understood. understood.

>> wiped out everybody. >> it's not a great depression what we went through. >> no, but i think there's an element of caution and there's also -- >> there's a lack of confidence. i think that is fair and i don't think that confidence has necessarily been resuscitated in a significant way. we had fits and starts of feeling like we're on the move and then we invariably seem to not be on the move. >> well, affordable care, how many people do you bump in who don't know what their health care plan is? you know, small business people, people one in two person shops don't understand their health care. again, i don't mean to be ideological. that's not democrat or republican. it's just really hard to understand. i've gone to paychex to try to figure it out for the stuff i'm involved in. i don't want to get in trouble. 20,000 new auditors from the irs. i don't want to be one of those people that gets called in and said you didn't do the right thing for the affordable care act. i can't be alone in that as an employer. >> let's come back to the markets. yesterday we had a strong day. a lot of people trying to figure out the reasons, who knows. we just were up.

>> kind of oversold. that's a technical term. >> and people focusing on the positive at least a little bit in emerging markets and here we are today, get the jobs number, not good. up 13, at least versus expectations. does it change anything? >> i don't think so. >> does it change the tamer of the taper? >> i'm immediately hit by people that say, look, immediately you know that there's not going to be as much that the fed can't be your enemy here. but then -- >> rates are going to stay low, right? >> yes. but one of the things i hate about this market is that people don't understand, there's a guy over here, i don't mean to point fingers but i'll point finger. it's all algorithm. it's almost as if the hft people sell on this tomorrow. you saw the futures go down big, who did that? it's people that just trigger. they are triggered and that future trade had to be faded so to speak. but i just think in the end when you looked at what happened to l-brands, what happened with gap stores, when you look at what happened with kohl's they

reported really terrible numbers and their stocks went up. what does it tell you? it tells you that people were ready for it. that's what it tells you. that people were ready for it. >> and outfloes from equity funds and bonds and cash. >> it's a sucker bet these rates. the sucker bets. i've been doing this personal finance stuff -- >> i was watching last night talking about roth i.r.a.s. >> a 20-year-old wants to put money away, what do you tell them, i want you to own cds or the apple bonds. i am mentioning apple because of the buyback. is that something that you want -- you want a 30-year-old person in a 3% bond or 20-year-old person? no. so, i think that, again, equities are a default place to be and we've had some companies that have come down enough that their yields obviously become accidentally high. i saw the master limited partnerships get a bid. they've been a terrible place to be. >> if rates stay around 3% or

below they'll have reits, mlps a lot of which got hurt last year as rates moved up. maybe a better place to be. >> it's not a good number. >> no, it's not. >> in the end why aren't we creating more jobs? gee, we're a growth economy but i'm sure they're sitting there in germany saying, boy, we stopped creating joshes and britain has job creation, brazil they don't have job creation. china is struggling. throughout the world there's just a lack of demand and i think we shouldn't forget about it. >> now that the jobs report is out, did you nail the number? all week long we've asked you to tweet your predections for january nonfarm payrolls, the lucky winner will receive this sochi olympic backpack. >> holy cow. >> it's high quality and signed by the whole "street signquawk street" team. >> none of our relatives were allowed to participate. we were given the number ahead. did you see "the journal" do a

story about how certain people are given numbers ahead of time. eamon javers did that story 15 different times. suddenly it's news? cnbc is a news organization. if we did it and we broke it, don't just go do it and act as if you broke it. we broke it. >> that's true. we do tend to do that. come back to stories when other people report them even though we reported them first. i know that first hand perhaps better than anybody. >> more than anyone at this network. >> as for the winner of the nail the number we'll announce it later in the program. good luck to all of the entrants. let's move on to stocks and talk about the biggest, apple has repurchased $14 billion in shares over the last two weeks after the company's weaker-than-expected quarterly earnings report the buyback part of apple's previously disclosed $60 billion repurchase plan. ceo tim cook in an interview with "the wall street journal" said that, quote, it means that we're betting on apple. it means that we're really confident on what we're doing and what we plan to do. we're not saying -- just saying that, we're showing that with

our actions. indeed they are. $14 billion over 2 weeks. it's funny, got a couple of e-mail goldman saying this was the strongest repurchase tuesday and wednesday two of the top three days of all-time now we may know why. >> well, let's look at this. there was a line on the conference call that a lot of people were not crazy with that conference call. tim cook was asked about buyback. he said we're a big believer in buying back the stock whether the stock goes up or down. i directly oppose that and said do you know i think they ought to be -- i used some words on the show aggressive and opportunistic when the stock comes down, thrilled to see that tim cook say he felt they should be aggressive and opportunistic in "the wall street journal." so many buybacks are done high. look at adt which is the poster boy for stupid, horrible, horrendous, anti-shareholder buybacks! they bought back all the stock at $44.01 from an activist on the board and the stobings at $29? do you know what, that is stupid! i didn't say criminal.

notice. notice. i said stupid! you can't go to jail for being stupid. >> you can't. >> this is the opposite. the market's coming down big and everyone is selling apple, everybody is freaking out. what do they do? >> they buy. >> go ahead, make my day, right? it's a clint eastward buyback and i love that and i congratulate them. bravo for listening and not doing, like, a cisco buyback, high, low, it doesn't matter, or accelerated buyback which is totally the brokers talking some ceo doesn't know anything about stocks into literally having the stock come up and then they short the stock. the brokers actually short the stock watching them down and make money. that's the other thing, accelerated buybacks that was a ludicrous thing. i used to do buybacks for a living. i know what the deal is. >> $18 billion left of the $60 billion buyback authorization. remember, it was a $100 billion plan between the dividend and, of course, the buyback. much of this is an effective perhaps rebuttal to carl icahn although he could conceivably

claim credit for it. capital allocation continues to be a question with apple given its enormous trove of cash. much of it is overseas. jim referenced the huge bond deal that they did last year. by the way, the lowest rates ever by a corporation. >> three-year data at 5.1 and they went ex-dividend. the company bought back a lot of stock and they yielded 2.38 and they bought back stock ahead of it -- >> it was interesting in the interview that mr. cook gave to the "journal," and by the way, tim, we're certainly always available if you want to have a seat there, there, or here, we'd love to talk to you as well since you seem to be willing to talk to the "journal," he did reference new products. he did come back to this idea, again, that we've got something. they seem to know what's coming. obviously they -- >> seem to know? >> they know what's coming. they know what's coming. >> google has a good sense of what they're doing and they talk to google and suddenly they're right! do you know what, google is right. >> the word "seem" in front of

everything to protect me. they know what's coming, what do we think given that they seem to be confident about it? should we take them at face value? is it going to be television? >> i'm not sure it will be television. some people wearables, when you talk to kevin plank, the ceo of under armour, the guy knows wearables. the world's sweatiest man making shirts so he doesn't sweat, imperative there. >> yes. >> i think that's a big market. one of the things i like about apple, they've been talking more, they're buying more software. people want devices. the biggest problem i have with apple, i've been doing this book signing, why not work my book in, we've been doing a lot of other things. didn't work the restaurant in yet. that comes next week. >> that's later. >> everyone loves -- you know, this is -- i stopped counting at 20 people who said i'm worried about apple. a lot of people bought it higher. but they're all taking the picture with the iphone. you -- everyone -- it's almost like everyone who wants one has one. that's a big problem. but, you know, also let's not forget the traffic at the malls, we didn't get same-store sales

from apple. they only gave us total sales. i wonder whether same store sales dropped off, again, because of mall traffic. a lot of moving parts here with apple. it's a big part -- apple's a part of the gdp is what i'm saying. >> absolutely. we'll get an update i'm sure prior to the annual meeting, of course, from the company in terms of its buyback plans once -- it's only got $18 billion. >> carl back away now? >> no. he's only asking for 50 billions. he's not asking for 150 billion. >> this is more. >> more and more. >> that's our society, isn't it? >> he wants an additional $50 billion on top of the $60 billion that will take place or much of it already has. >> i think buyback and acquisition at the same time. and by the way, i've been pushing for an acquisition here. >> right. >> i've been pushing for a ten-figure acquisition. >> cook said we won't necessarily back away from a ten-figure number on an acquisition. he said that. >> come on "mad money" since i called for a ten-figure acquisition. >> he had them buying anything and everything. i can sit here and think -- you

had them buying networks, had them buying netflix. >> aol. >> aol. >> how about palo alto after the juniper guy lost the summary judgment? you should buy palo alto. >> they could buy all of those things. actually a lot of real estate. might be very expensive, sand hill road. we'll talk live with jason furman the president of the council of economic advisers. also ahead -- yesterday it was twitter and today shares of linkedin they are down on concerns about -- >> grover done on the downside. listen to me. grover down on the downside. >> take another look at futures as we head to break. you can see we are up on a disappointing jobs number. we're back from the nyse in just a minute. when you order the works you want everything. an expert ford technician knows your car's health depends on a full, coheckup. the works.

because when it comes to feeling safe behind the wheel, going the distance and saving at the pump you want it all. get our multi-point inspection with a a synthetic blend oil change, tire rotation, brake inspection and more for $29.95 or less. get a complete vehicle checkup. only at your ford dealer. anbe a name and not a number?tor scottrade. ron: i'm never alone with scottrade. i can always call or stop by my local office. they're nearby and ready to help. so when i have questions, i can talk to someone who knows exactly how i trade. because i don't trade like everybody. i trade like me. that's why i'm with scottrade. announcer: ranked highest in investor satisfaction with self-directed services by j.d. power and associates.

shares of linkedin falling in the premarket despite better-than-expected quarterly results. it was revenue guidance for the current quarter that continues to be. linkedin ceo jeff weiner spoke about what he's expecting on the mobile front this year. >> in 2014 we expect to reach the point where most linkedin members access the site via mobile devices, mobile will continue to be a major area of investment in 2014. >> all right, they're talking about an ebita guidance miss at

a lot of the firms that cover linkedin, concerns about the scaleability to a certain extent and continue of the business model. we're talking about some pretty lofty multiples so you got to keep up that growth rate. >> let's go to the tape paragraph five weiner says this, he goes with regard to engagement as measured, we averaged 139 million monthly new visitors during q-4 growing 20% year over year. don't you think twitter wished they had that number? >> i think they do. >> i think -- >> and linkedin probably wishes it had twitter's number when it comes to multiple sales of -- over enterprise. >> people are selling furiously reminds me of the people selling gm yesterday at $33, hey, where did that stock go out? i'm telling you, this linkedin quarter, they are very conservative. i know last quarter was a miss. i like this. i like the china move. i apologize for liking this conference call and liking their engagement. i apologize. >> their guidance in the past

was not as bad as it was this time. in other words, they do have a history of overdelivering, underpromising but they seem to be setting the bar -- >> i'm not going to disagree. i don't expect the stock to be up on the day. but i didn't mind the conference call as much as the naysayers, whom i thought there was a lot to be liked in the conference call. >> what's an appropriate multiple to either reported earnings or ebita, right? we're talking about a company that trades over 25 times. >> you can't have -- you know, you're bounded -- >> ebita. >> you are bounded like something 15 to 18 if you want to go excess. linkedin does not have the luxury of being solar city, tesla, does not have the amazon. these are the ones that are knocked down by the four walls of earnings per share and the spreadsheets. it was not what i wanted to see. i'm just saying there's possibilities here for an acceleration so let's not rule out linkedin, but it is a very expensive stock. >> it is. and will continue to be although perhaps a bit less so today. >> because it's a brilliant company. >> look at yelp. >> what about it?

>> did you see it yesterday? >> you love talking about yelp. why do you like talking about yelp? >> hey, handcuff me. i like making money. >> every day with the yelp. >> yelp was up 14 this year. >> i know it is. i know it is. >> it's now the key to this market. >> it's a juggernaut. >> ever since lumber liquidators stumbled and tractor supply. >> i'm glad that we've replaced it with yelp. >> yelp is now the key to this market which the illusion of david and i doing tv in the 1996 and 1997 halcion days. >> and we used to play the sound effects. all right, we'll see what the keys to this market are coming up when we talk to jim about his "mad dash," we're counting down to the opening bell. more look at the futures today. more "squawk on the street" is coming right at you from the nyse. opportunities aren't always obvious.

sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances. so ally bank has a that won't trap me in a rate. that's correct. cause i'm really nervous about getting trapped. why's that? uh, mark? go get help! i have my reasons. look, you don't have to feel trapped with our raise your rate cd. if our rate on this cd goes up, yours can too. oh that sounds nice. don't feel trapped with the ally raise your rate cd. ally bank. your money needs an ally.

customizable charts, powerful screening tools, and guaranteed one-second trades. and at the center of it all is a surprisingly low price -- just $7.95. in fact, fidelity gives you lower trade commissions than schwab, td ameritrade, and e-trade. i'm monica santiago of fidelity investments, and low fees and commissions are another reason serious investors are choosing fidelity. call or click to open your fidelity account today.

and it's friday. how did that happen so quickly? "mad dash" time for a friday. where we going? >> whole foods versus farewell, a lot of companies came public, sprouts, totally management shake-up and horrendous same-store sales number, this is the beginning of the shake-out, david. >> this is ugly. they should have never come public. it's a shame why they do that to people. >> i don't know. i loved the red hook which got hurt by the storm. and the same-store sales were horrendous.

this is a big, big disappointment. and let's say that -- look, i don't want to say the category slowed at all, but it does show you that those who felt that fairway would cut into whole foods' business, wrong. wrong! and i don't expect a big number or great numbers from whole foods. >> what do we think the problem is at fairway? >> management. management. of course, management. everybody whom i thought was running the company seemed to have disappeared overnight. i was at a bar last week with a guy named bill sanford and he introduced himself as a honcho at fairway, they made him the ceo last night. congratulations, bill. >> really? you were at a bar with a guy named bill? >> yeah, and he introduced himself as a high level of executive at -- >> and now he runs it. >> hey, easy come, easy go, huh? >> maybe the problem he was at a bar. >> he was with steve young. four men walked into a bar, steve young, kevin plank and -- >> that's allowed, then. >> and he was there, hey, how you doing? you ever need fairway to do anything, i need it to go up.

>> everybody is selling this thing today if i'm unfortunate to own it am i one of those selling it or hope the guys can turn it around? >> he seemed like a likable guys. >> i know a lot of likable guys that couldn't run a company to save their lives. >> what do you think he's willy loman? >> let's move to lowe's. >> goldman downgrades lowe's, saying, listen, housing is not that strong. this is the test case for today. i think lowe's a making a turn but it was not that good versus home depot's call and identify think if home depot goes down it's a sign that people will attack that end of retail after letting a pass yesterday. watch home depot. watch lowe's. watch whole foods. watch sprouts. and watch fairway. because these are the battlegrounds. home improvement and organic and natural. >> all right. >> and follow @buckmarshall on twitter. >> every day with this.

>> because chipotle goes up every day it has to do with natural and organic and the food chain. remember, if the agricultural business is about affordable food at any cost. >> all right, we got a lot to watch. you keep track of all of that? i certainly tried to. also going to talk to jason furman the president of the council of economic adviser and he's at the white house and we'll reaction to the jobs report this morning. we've got a lot more "squawk on the street" right after this. ♪

♪ ♪

♪ [ tires screech ] chewley's finds itself in a sticky situation today after recalling its new gum. [ male announcer ] stick it to the market before you get stuck. get the most extensive charting wherever you are with the mobile trader app from td ameritrade. you are watching cnbc "squawk on the street," we are live from the financial capital of the world where the opening bell is set to ring in about 40 seconds. it does appear we'll get a positive opening here even after a disappointing jobs number. there were many who want to see a reacceleration if you will of the economy which did appear to be hitting some real momentum, gaining momentum. >> and february will be distorted by weather.

you were absolutely right, construction jobs, if weather were that bad. but do you know what the spring season for housing's coming up and that will be good for jobs. >> auto sales, man, that was not good. those numbers were not good. good time to buy a car. >> do i look like the economic capital advisers guy, don't worry about it, it's great? you want me to play that role. >> we'll talk to him in a minute. you heard the opening bell and there's the s&p real-time exchange in good old hq in englewood cliffs. and celebrating an initial public offering. over at the nasdaq girl scouts kicking off national girl scout cookie weekend. adorable. look at that. me here we are. mostly green yesterday. very strong rally after a difficult time in the market. >> they are asterisking the number saying don't worry about it. >> just like the last one. december and january, don't worry about it. >> no. apple $520 by the way.

the battleground level. >> is that a battleground level? >> that's a battleground level. >> we can talk all we want about a buyback and continued buybacks at apple but it's got to be about the new products. it's got to be about this -- >> do they have something up their sleeve? yes, they do, it's apple. >> they say they are. you don't have to look for it. >> i think that apple if they made a couple of acquisition and this is a newer apple which turned out to be the most defensive large cap stock during the downturn. >> trading about 11 times -- traded at an average of 11 times over the last three years. you can't expect that it's -- it's never going to get multiple expansion, is it? 11 times what you can expect. it might go down to ten. >> last move more aggressively in the social and mobile and cloud and connectivity. it can do that. it knows. look, those who sold apple last week at $500, well, that was stupid. it's okay to say that, by the way. i called someone stupid earlier, the people who are on the board of adt. >> yes, you did.

>> because i want to call thing out that people that e-mail and tweet me, jim, if you think it is so stupid, why don't you say it. i am acceding to the wishes of those who want me to call people out. >> are you lowering yourself to the level of those people that would participate in those things? >> i'm not thomas jefferson. >> really? because i mistook you for jefferson many times in the morning. >> emancipation proclamation it's a war document not about equality. lincoln was slow into equality. other people that are often confused lincoln and jefferson and, of course -- >> lenin. >> vlad lenin. who was not a great man. >> well, others might disagree. all right. let's take a look at some others. by the way, a little news on a company called aaron's, i just mention it because the stock is up 12.75%. vintage capital group, a fred sands company. i'm just reading here. >> fred sands? totally heavyweight guy. >> a highly successful business executive and investor, mr. fred

sands have offered to buy the company, have they indeed. their offer price is $30.50 a share. for aaron's. and no other news for you on that except they are a holder and they want to buy it. fred sands. >> well, hey. >> hey. all right, fred. whatever you need. >> got to love you. >> what else should we be watching this morning? >> i want to caulk about cummins for a second. >> okay. >> because this is, again, how stupid people are, because now i've called people stupid three times. cummins comes out and they issue a very -- the release, the headlines are not that good. and immediately we have the disappointing, disappointing because the people it's, like, a trigger, there's, like, a formula, then you go listen to the conference call and they are saying it is the bottom in the cycle. they have new technology. china will have to dot that because china can't see their feet for the pollution. and this was a bullish call saying that the big -- big trucks, heavy trucks, have bottomed and have turned up.

this is a big job creator. making of trucks. cummins is the stock to watch because they got more of a bullish and they also admitted, by the way, they didn't have the right inventory. but watch cummins because cummins is a great american company and they are saying this very important part of the cycle of business is done going down. >> a good reflection of the industrial economy to a certain extent. >> exactly right. not being facetious. >> i know. it's a good tell. i know that. >> people don't listen to the conference calls. if you read the headlines you think cummins should be at $118 but if you actually did the work, you would listen to it and know more about the trucks than anyone and it was a powerful statement that this part of the economy has bottomed. something hit bottom in november, december. >> let's quickly take a look at expedia shares because they are up sharply as well this morning after a better-than-expected quarter there. >> they shot themselves in the foot and they've recovered from it. international accelerating. domestic accelerating. people that don't know expedia

it's a way a lot of businesses got rid of their travel departments and told their employees, use expedia, here's your per diem. >> a lot of competition as you well know running the inn. >> i come in every morning when i'm make the bagels on sunday, no lox, i can't afford the lox but we do bagels and veggie cream cheese and i look at the checkerboard of who checks in and expedia checks the people in, they take a couple bucks. this expedia is a very powerful technology that did not exist. >> all right. let's get back to the jobs report this morning. disappointing number, of course, nonfarm payrolls came in at 113,000 that was below what was an expectation for 189,000 jobs being added. unemployment, though, the rate did dip to 6.6%. let's get the first reaction from the white house. here first on cnbc is jason furman, he's chairman of the president's council of economic advisers. always nice to have you. give me your reaction to what many say is simply a continued

lackluster growth in jobs in the country. >> i think we've continued to see steady job growth. we've seen the unemployment rate coming down much more than most anyone expected. you look just a couple months ago, people didn't think we'd be at 6.6% until the end of this year. we've gotten there already. there's no doubt there's a lot more we need to do on both of those. would not get us caught up on the month-to-month fluctuations as i would on the overall trend here which is moving in the right direction. >> yeah, moving in the right direction, although december and january certainly don't seem to be a pace of what we were starting to expect, mr. furman, you know, given what we saw in the fall. >> look, the last year we've seen 2.3 million private sector jobs added. that's a pace of about 190,000 a month. some months are a little bit above that pace, some months you're a little bit below. this month it was 142,000. we saw particularly strong gains in sectors like construction and manufacturing, which have been

important to this overall recovery. and we want to do a lot more to continue to focus on adding jobs and strengthening the economy. >> what does that mean? what does that actually mean? what exactly is it you are doing? >> that means a whole lot. there's things we could work with congress on right now, whether that's investing in america's infrastructure, reforming our immigration system. or smaller things like reforming our patent system which passed the house and is now before the senate. there's also things the president, as you know, is doing with his pen and his phone, whether it's dealing with long-term unemployment, helping get people into college, raising wani wages for employees of federal contract. >> mr. furman, you had to be thrilled this week when the state department said there's no major economic environmental objection to the keystone pipeline because there are reports that it creates 60,000, 100,000 jobs. don't forget trans-canada, canadian company is willing to do it. so is it one of those things and you have to say it and since the president is in favor for all

kinds of energy, yes, let's put a lot of people to work, it must thrill you! >> keystone is going through a process at the state department and one thing the report found it's not a major long-term jobs issue and the president set out his criteria in a speech last summer related to carbon emissions. what we're focused on is a whole bunch of things that really are about large numbers of jobs, for example, what we can do for natural gas to expand the production there. it's great for our climate. great for our economy and we can do it in a way consistent with our environment. >> will you push for many of the initiatives that -- because i'm totally on board. hey, that's horse sense in the nat gas. i've been pushing for that myself. i know the president said, listen, they'd like to help the build-out of natural gas. there's a lot of things you could do that are actually tax neutral and make it so there are more gas stations that are natural gas. will you work with some of the energy companies to get that going? because that's a really smart initiative that could create between 200,000 and 400,000 jobs

according to the people in pennsylvania. >> we're looking to everything we can do to expand natural gas. and it's part of why the united states is now producing more oil and gas than any other country in the world. it's been one of the most exciting economic developments. it's good for our economy. it's good for our energy security. it's good for our national security. good for our climate and we'll look at, you know, work with anyone in that area. >> so, are you going to put together, say, a task force? dave steiner at waste management, maybe andrew littlefair of clean energy fools and get together with general electric is very much in with this, and get together with them and say let's promote gas stations throughout the united states and that's what the truck companies like cummins are waiting for you to do? >> we're certainly looking at a lot of those set of issues and talking to a lot of those companies and others as well. >> the weather has been a concern for those who believe the economy is slowing but perhaps it is due to what has been unusually tough weather in parts of the country. nonetheless, i did notice in

this jobs report construction which you would expect would be hurt by the weather was a real strong point. so, are we slowing or is it the weather? >> i don't think weather had a lot to do with the january jobs report. the reference week was actually slightly warmer than average as you just said. construction jobs were strong in january, so weather could have an effect on our economy. the drought in california is certainly having a serious effect on their economy, so you'll see it showing up in some of the economic data. i don't think it was a particularly big part of the story in the jobs numbers this month. >> do you think the economy is slowing from what was the third quarter let's call it? >> no. we had a very strong growth in the third quarter. we had very strong growth in the fourth quarter. and as we look forward to 2014 we're going to have fiscal policy now that we had the budget deal. we had the appropriations deal or buying back some of the sequester. there's a lot more room for growth in housing.

and if we can create more confidence for our businesses on areas like the debt limit, for example, i think they're poised to increase their investment as well. >> it doesn't feel to me like a lot of confidence may be created. we're coming right up against the debt ceiling again. what are your expectations there? are we going to go through yet another wrenching battle or is this thing going to be put aside very quickly? >> i think congress understands that this is their job, their responsibility, to make sure that we pay the bills that we've already wrack racked up and don't do something and impair the full faith and credit in our country in the first time in our history. that's a responsibility they need to figure out how to discharge. >> mr. furman, as always, appreciate your time. thank you. >> thanks for having me. >> jason furman, downle is of economic advisers chairman. all right, dominick chu is on the floor today, all right, dom, welcome to the new york stock exchange. what do we got moving? >> it's so good to be with you guys. as i'm filling in with bob

pisani, i'm getting the lay of the land. and the south american exploration and production company, it's not trading well but interesting action there. of course, everybody's talking about the jobs number that bearish reaction we saw just initially that pretty much ramped back and the dow and the nasdaq and the s&p in positive territory for the time being. other things we're watching as well the ten-year yield showing the same move, the buying of safety and pushing yields lower, we've seen that kind of dissipate as we move toward the opening bell and beyond. and dollar/yen, interesting trade, dollar weakening against the yen, people are buying up yen again, the safety of the yen, that trade has pretty much gone kaput as well, something to keep an eye on as well. in terms of stock movers, interesting move in expedia, opening at a record high this morning here, this is when the company comes out with earnings that handily beat because people booked more air and hotel travel. also a couple of the big ones. the web 2.0 companies, you think linkedin, opentable, their

forecasts maybe not quite as robust as some investors would like, showing perhaps some slowing growth in the future for some of the big, high-flying names and we'll end on outer wall, soaring here, a $350 million share buyback from the company formerly known, guys, david, as coinstar and, of course, the red box dvd kiosks, back over to you. >> good day for that. >> the cash flofs weren't as good as people thought but it doesn't matter because in the end they are trying to do what is right for shareholders. >> which is? >> red box. the tender for the stock. i love it. >> let's get to the bonds pits and go to rick santelli at the cme group in chicago. take it away, rick. >> good morning, david, well, of course, let's look at the conventional wisdom out there, the knee jerk reaction isn't the way the markets set up, stocks initially dropped. you could see something has changed. the other conventional wisdom is weather and as all the cnbc personnel have been adequately pointing out, stellarly pointing out, you know, the construction jobs you s auger the seasonalite

working and the revision last month being minuscule one would have to ponder how the revision would be affected in that fashion. nonetheless, the markets at least on this trading floor do believe there is a weather issue there so we'll continue to monitor. if you look at an intraday of tens you can clearly see that volatility. you can also see we're coming back down quite cross over the 270 threshold. year-to-date chart you can still see the direction seems to be down 2.75 seems to be the pivot most traders are looking at here. it isn't only us, look at bunds, they couldn't quite get up as much as their unchanged number, their year-to-date looks very similar. but here's one you really have to wonder about. here's the spanish ten year, its yield didn't move up at all on this data. as a matter of fact, open the chart up to february of '06, it's trading at the lowest yields since then. we continue to ponder why that rate's going down. the buyers seem to be the japanese and they pretty much announced that about a year ago but we need to really monitor this especially in light of the

punt on the german court ruling. a couple of charts of the dollar/yen and the euro/yen show you the linkage there so good for so many weeks really started to break down yesterday. david, back to you. >> all right, thank you very much, rick. >> you have to watch china, too. back in action. >> on a holiday most of the week. >> holiday over. >> good point. you can see the picture there david cordani, the cigna ceo, what does he think about aol, he can't help himself tim armstrong saying regarding obamacare. first, though, let the games begin. carl is live from the olympics in sochi when "squawk on the street" returns. tall the building is,

or how ornate the halls are. it doesn't matter if there are granite statues, or big mahogany desks. when working with an investment firm, what's really important is whether the people behind the desks actually stand behind what they say. introducing the schwab accountability guarantee. if you're not happy with one of our participating investment advisory services, we'll refund your program fee from the previous quarter. it's no guarantee against loss and other fees and expenses may still apply.

chuck vo: standing by your word, that's what matters the most. afghanistan, in 2009. orbiting the moon in 1971.

[ male announcer ] once it's earned, usaa auto insurance is often handed down from generation to generation. because it offers a superior level of protection. and because usaa's commitment to serve current and former military members and their families is without equal. begin your legacy. get an auto insurance quote. usaa. we know what it means to serve. athletes from around the world are going for the gold as the winter olympics officially kick off today. carl quintanilla is at the games and he's in sochi, russia.

carl, how's it going? >> reporter: hey, morning, guys, david, jim, it's less than two hours until the opening ceremony sochi time and so this area behind me olympic park even as we speak is starting to get locked down in what they are calling the most extensive security operation really in the history of sports. they have scaled off the city. they have 60,000 security personnel. 25,000 police. 30,000 soldiers, 8,000 russian troops, thousands of security cameras all for an estimated cost of about $3 billion. and a couple of new tools as well, guys, you know, some blimps you might see from time to time hovering above alimb pick park, tethered to the ground but outfitted with security cameras. a lot of tent poles and light posts with cameras as well. of course, the opening ceremony is tonight on nbc 7:30 p.m. eastern time, ceremonies at 8:14 p.m. eastern which is 2014 if you think about it in military terms. and, guys, we love to talk about stocks.

here's a couple for you. ralph lauren which is designed the outer wear for the athletes you'll be seeing them wearing those clothes tonight during the opening ceremony. some varying popinions on just how those turned out and coca-cola which had the controversial ad during the super bowl where they played "america the beautiful" in different languages is going to run an even longer version of that ad tonight during the ceremony. of course, we know what an active week they've had, guys, with the green mountain news. >> yeah. >> yes. >> absolutely. >> and the stocks is going higher. hey, carl, great to see you, i want you to be safe there. there were some articles about how some hotels weren't finished but they'd work 24 hours a day to get them -- is everything done? >> reporter: we're in good shape, jim, we're in one of the hotels where a lot of olympics families are staying so it might have gotten a little extra tlc, but russian officials have been very defensive all week long, saying, look, we've built a city from scratch essentially within six years. housing 200,000 people.

so, the winners as they put it today are not going to be judged but certainly that has set the tone. you always talk about underpromising and overdelivering, jim. maybe that's what putin is up to tonight. >> yeah. what, they spent about $50 billion or more, right? the most expensive games ever, isn't it, carl? >> reporter: $51 billion by far the most expensive winter games, you know, and interestingly, people say why do they spend so much money? $3 billion on security, how can that possibly make sense? a lot of critics of russia argue, foreign policy critics, argue that the customer service, the security personnel are inefficient so to speak and so because of that there are multiple redundancies and that's what's led to the cost figures. >> carl, there's a lot of -- i see a lot of these auditoriums, a lot of places where the games are named after people. i understand that putin did suggest that a lot of the oligarchs kick in a little money for these games. >> reporter: oh, yes, private

money is a big piece of this especially in the hotel sector here in sochi, everybody talks about legacy, what are these buildings going to be used for after the games are over. they're trying to turn this into sort of a las vegas meets sports hub where people will come. there's a theme park with roller coasters not far from here. the hotels they argue will have to have run rates of about 2 1/2 over current levels for the private investors to make some money. but, you know, when the president -- when president putin is close to some of those oligarchs and says help me out, you know they are going to. >> yeah. they don't like to cross the boss. >> it's not a democracy. >> carl, we're looking forward, of course, to the games actually beginning and all of the coverage from you, not that we don't miss you here, but enjoy. we'll see you soon. >> reporter: all right, guys. >> thank you. what happens in sochi stays in sochi or else! >> i just wanted to say, let the games begin! all right, we also have 6 in 60 which will begin right after this.

save up to $500 on beautyrest and posturepedic. get a sealy queen set for just $399. even get 3 years interest-free financing on tempur-pedic. keep more presidents in your wallet. sleep train's presidents' day sale is on now.

it's that time 6 in 60, let's start with dyne equity. >> this is i-hop making a comeback, a terrific idea to buy. >> we haven't mentioned

starbucks. >> this wells fargo piece is brilliant about the reinvention of starbucks and what howard schultz is doing. >> red hat. >> this is a cloud play fantastic quarter and they plateaued they are saying credit suisse buy it. >> and this is a quarter to end all quarters. >> holy moley. >> he should read the coming book it's brilliant about how to save the health care market. >> lululemon. >> rbc upgrades. >> and g.w. pharmaceuticals. >> this is the most legitimate marijuana stock because it actually has a cannabis -- this is an anti-pain company that has one very small piece that's marijuana or cannabis and people have been going crazy for it, it's a very real company. but piper raises the price target from 77 to 97. it's not just marijuana, it's really good health care. >> you got it. all right. we beat the buzzer. what's coming up tonight? >> one of my favorite guys that talks about the social contract

with sier with shareholders, steve holman bought a ton of stock when it was down. we'll talk about buybacks and the hospitality industry. he doesn't get enough conversation or credit. i'll change it tonight, and st. jude med is on and channel adviser which is a great company to ask about advertising on the web and twitter and facebook will likely come up. >> it's been a fun week. >> fun to work together. >> always fun. always fun. simon hobbs i love to work with. what's coming up the next hour? >> i love working with david. we'll talk about tim cook and his product launches at apple and is the money spent buying back your own stock well spent? and we'll have jan hatzius, he was looking for 200,000 as the chief economist at goldman sachs and we'll have the ceo of cigna on the show, that health insurer, the stock is down on the results, the ceo will explain why and how the company

is shaping up for the future. hour two of "squawk on the street."

could save you fifteen percent or more on car insurance. mmmhmmm...everybody knows that. well, did you know that old macdonald was a really bad speller? your word is...cow. cow. cow. c...o...w... ...e...i...e...i...o. [buzzer] dangnabbit. geico. fifteen minutes could save you...well, you know. a 401(k) is the most sound way to go. let's talk asset allocation. sure. you seem knowledgeable, professional. would you trust me as your financial advisor? i would. i would indeed. well, let's be clear here. i'm actually a dj. [ dance music plays ] [laughs] no way! i have no financial experience at all. that really is you? if they're not a cfp pro, you just don't know. find a certified financial planner professional who's thoroughly vetted at letsmakeaplan.org. cfp -- work with the highest standard.

and our roadmap starts this friday morning inevitably with jobs. we added only 113,000 jobs last month. is the economy slowing down? if it is, what does it mean for stocks? goldman sachs chief economist jan hatzius will join us live. and apple a $14 billion buyback, tim cook telling "the wall street journal" that the move is aggressive and opportunistic, but was it really the right move? and tim armstrong making very controversial comments about the cost of health care and obamacare. the ceo of cigna will join us live to react to that. and his own company's quarterly numbers which have sent cigna stock down. we start, of course, with jobs. the u.s. adding as we mentioned just 113,000 jobs in january. economists were expecting something, like, 185,000. let's delve deeper with steve liesman, steve? >> kelly, i've been through about a dozen research reports on this number and the consensus is the weather does not seem to

have played a very large role in the big miss today and that points to at least temporary economic weakness with the major question about just how long until we know there's been an economic jobs turnaround, and when that data may appear. here's the data we got this morning. 113,000 on jobs and revisions up 34,000 from november/december and a tick down. and weakly hours unchanged at 34.4. average earnings up 0.2 percent and not that great. here's what the president's own economic adviser said about the weather effect -- >> i don't think weather had a lot to do with the january jobs report. the reference week was actually slightly warmer than average as you just said. construction jobs were strong in january. so, weather could have an effect on our economy. the drought in california is certainly having a serious effect on their economy. so, you'll see it showing up in some of the economic data. i don't think it was a particularly big part of the story in the jobs numbers this month. >> that's jason furman and he

just mentioned that construction up 48,000, manufacturing up 21,000. those are two sectors you'd expect to see some weather effect. temporary help not pointing to any particular strength in months ahead which it sometimes does. retail down 13. education and health, two months in a row now were negative. down 6,000. not clear what's going on there. and government reaccelerating to the down side. about half of those government jobs were state and local education workers. here's the numbers, not at work due to bad weather. 262, it was better than it was in december which was 273. it was a little worse than a year ago and a little worse than 12. but you could see a real month when it hasn't effect, january 11, 886,000, you can see the number for january '14 was better than 223,000. and separating it out presents a quandary to the fed and analysts. and in february likely to have some weather effects, again, that means march and april,

guys, the best bet for getting a proper read for the underlying trend at least from the jobs report. and there's other stuff we'll be following over that period of time, simon. >> thank you for that, steve, thank you for the analysis. let's note the market is higher, up 75 points on the dow and let's get some analysis. daniel morris joins us global investment analyst, and dan greenhouse is with us chief global strategist with btig. dan, would you accept this isn't the weather? and if it isn't a weather effect, is job growth slowing down? is the economy slowing down? >> it's just one month -- >> we have a dan and a daniel. >> so we do. >> dan greenhouse, why don't you come first. >> simon, come on. >> i'm sorry. >> yeah, i think steve got it right. our view is that there's a couple of spots you would look at to see if weather was an impact. obviously construction jobs being the first and foremost. so, yeah, i don't think that weather meaningfully and significantly affected this

report. as to whether or not there's economic weakness, if we take a step back here and look at things very quickly in two ways. first, since this recovery really began in 2010 you've had this sort of cyclic nature, cyclical nature to the job creation where we've had strong periods and we've had weak periods and we're in one of the weaker periods right now. >> daniel? >> yeah. well, i think you also always need to take these numbers in context of the other economic indicators that you're seeing. broadly speaking if you look at the figures we've had recently, it's more positive than negative. this one in particular was perhaps a little bit weak, but overall we think the economy is improving. we're not too concerned about this one number. >> do you think it is improving at a slower rate? >> not necessarily and if anything we're looking for an acceleration through the year. the underlying drivers are still positive. >> acceleration in what? >> economic growth. >> how are you gauging that? through gdp or the number of people that actually get work? >> well, it's hopefully going to be both. one will support the other. we think both gdp growth will accelerate and the employment numbers and labor numbers will

improve over of the course. if we had a slowdown in january it's one number in the context of other things we've seen it doesn't really change our base case. >> dan, it strikes me as interesting the market almost seems to be giving the jobs number the benefit of the doubt. if you look at the reaction the fact that equities are up this morning doesn't necessarily is a bad news is good news move, the ten-years move up a little bit after initially weakening and it feels like people are saying, all right, it isn't great, but this isn't the end of the world either and i wonder if that tells us something about market sentiment and whether the correction has run its course? >> i think that's fair. when you look beneath the headline, there's a couple of -- i don't want to say it's a strong report by any means, but some parts of the report weren't terrible at all. the household survey which is the part of the report that gives us the unemployment rate and a number of other indicators was actually pretty good. and i think you have two ways of looking at the market reaction this morning. i was talking at my desk about this. on the one hand, again, beneath the headline it's not entirely

terrible. and then secondly, if you are someone inclined to believe that this increases the odds that the fed slows its taper or pauses -- or pauses it in march, then that all else equal would be equity positive as well. >> you don't really believe they're going to do that, do you? that is not -- the fed is not indicating to any degree that it is about to go easy on the taper. the taper's in. the taper's strong. and i believe the expression is the bar is high. >> i totally agree with you. my point is, if you are someone who believes that, then that would be equity positive. listen, the fed is -- the fed is done. they wanted to be done with this as soon as possible and i think it's, again, the bar is high. you need really something dramatic to happen to have the fed not be done by the end of this year. >> daniel morris, if there's one missing piece of the picture right now, it is earnings. and even today, even though we had some better signs, there was still only a 1.9% increase from a year earlier in average hourly earnings. it's been a problem. we saw this show up in december

in some of the consumer spending and savings patterns and consumer credit isn't really picking up. at what point is it 2014? is it beyond? do we get actual earnings pressure to the upside? >> in terms of labor earnings? wages? well, i think what you've seen if you look at, you know, kind of a longer-term perspective over the last 40 or 50 years what real wage growth has been over the last several decades it was actually fairly constant and it was really just this recession which was just so bad that hammered earnings. so, you know, it was really shrunken, it's got to build up from a low base and it's really taken a while and it will improve but not until next year. >> i have to jump in real quick. do i have a second to disagree? >> not really. but you'll do it anyway, dan, go ahead. >> i'll save it for another time. >> please, you teased us! >> quickly, i don't think it's fair to say that there's something unique going on after the recession. wage growth since the breakage of the linkage in the late '70s, early '80s, wage growth has been trending down and it's been

fairly steady for a few years now, but short story is a lot of the gains that we've seen over the last 20 years have gone to capital, not labor. >> one very quickly, daniel, because we're out of time. if i gave you $1,000 to invest for 20 years' time, where would you put it? >> i actually would be looking into emerging markets. maybe not today. we know it's going to be a tough year but if you look at valuations it's one of the few parts of the world where you see valuations and you don't necessarily see it in the u.s. >> thank you for joining us. have a great weekend, guys. thank you. shares of apple are up this morning. the company announcing its repurchase of $14 billion in shares over the past two weeks. the buyback was part of apple's previously disclosed $60 billion share repurchase plan. ceo tim cook telling "the wall street journal," quote, it means that we are betting on apple. it means we are really confident on what we are doing and where -- what we plan to do. we're just not saying that. we're not just saying that we are showing it with our actions. let's bring in abi lamba, the

analyst and jon fortt joining us as well, an extraordinary story, and not the least of the quotes from tim cook himself who analysts were kind of criticizing the move saying, wait a minute, if you are so surprised by the fact that your shares moved lower that significantly after the earnings report, do you understand the concerns about how you're managing this company in the first place? >> yeah, you know, it's one of those things where the stock reacted because the guidance for march was weaker and underlying fundamentals for the market is not all that great and that's what's been driving apple. essentially there has been a lot of talk about them leveraging their balance sheet more and really doing more buybacks and showing some of these actions. and they've had $60 billion in authorization, so it's -- and they only bought about $28 billion worth of stock until the end of december. even after buying these -- >> yeah. go ahead. >> even after buying these $14

billion, they still have $18 billion left in the authorization. and they'll kind of revalue it in march. >> jon fortt, does tim cook know at what point his company shares are cheap? >> well, i don't know that any ceo really knows at what point the shares are cheap. i think what's interesting here is that pretty intense buying over a couple weeks. you look at the stock chart. it's interesting to see what the stock did right after earnings. and there's a lot of focus on exactly what his words might be pointing to as far as what apple's about to do. he talks about new product categories. won't clarify it to "the journal" exactly what that means, you know, my bias and i told tim cook this, is that maybe they haven't done as much with software as they should for the mobile devices. i mean, you look at the i-life suite, garage band, some of the other things they were able to do on the mac side, on the pc side, i would argue they haven't done as much on mobile to create these brand-new ideas of different kinds of software and

services you can do on mobile. maybe if they were doing that people wouldn't be hanker quite so much over devices. they could point to look at what we're doing to take advantage of our existing -- >> i would have to disagree with you, jon, most people what they want, they want a new blockbuster, they want a new product out. what do you make of the evasiveness of tim cook during this interview where the reporter presses him and says, you know, what are -- do you have new product categories that you're going to unveil? and he comes back eventually by saying that any reasonable person would consider what apple is working on to be a new product category. that to me suggests he's about to just resize the iphone, what do you think? and will it move the needle? >> yeah. no, absolutely. i think it's -- apple's kind of the way they work they don't talk about new products until they actually reveal them. so, that's how tim cook was not really answering that question directly. but at the same time for this year there's a lot of expectation for them to do something on the variables front. and we are expecting some new

product category. hopefully in the second half of this year we should see something from them. >> yeah. i got to disagree with you. of course, everybody wants, you know, a flying, you know, spacecraft, a flying car from apple. there was a long period of time when people expected an iphone and didn't get one. what people also want from apple is passion. passion, it could be about software. it could be about services, but hit us with something that shows how you're thinking about the world, how you're thinking about where innovation is coming from. maybe they are getting a little gun-shy about releasing small things that maybe won't move the needle but will inspire. >> they've got that shareholder meeting looming february 28th, it will be an interesting one. thank you both this morning. appreciate it. >> sure thing, uh-huh. up next on the program wrack linkedin is getting no love from investors today, the ceo disappointing the street with a very subdued outlook. does that make it a buying opportunity? are they sandbagging here? more on that when "squawk on the street" returns.

shares of linkedin are lower today as you can see in wake of the company reporting last night. it's taking a hit on weak revenue outlooks essentially despite beating estimates on where they were in the quarter. let's bring in john steinberg president and ceo at buzzfeed and indeed a cnbc contributor. good morning. >> good to be here. >> your take here? >> my take here is it's similar to twitter. they came in light on the number of registered users. they came in at 277.

most people thought it would come in at 279, call it 18 million, 19 million adds, but not where people wanted it to come out. lower guidance for q-1, this company tends to be a sandbagger. >> what does that mean? >> underpromise and overdeliver and you don't think you can read that much into it. there's no room for error on a company this expensive. >> expensive, you compare it to twitter, it's cheap. >> it's 24 times ebita. >> which is a big multiple. although twitter's at 30 times sales. >> i know. twitter had its comeuppance yesterday. >> the marking the solutions where they are moving to a sponsored update like facebook and twitter has they did $15 million in revenue and two-thirds from mobile and some signs they'll cross the chasm. >> not all social networks are the same, are they? linkedin is a high-quality, high-revenue operation compared

to certainly some of the others. so, what do you think of this idea that they're going to refocus on their existing customers, they're going to grow their sales force over 30% during the course of the year? >> yep. >> as evercore put it so the managers are more farmers than hunters. >> that has been their philosophy now for i would say going on a year. they brought in dan roth who is basically the editor of linkedin and spun up this influencer platform where a lot of ceos blogged directly on the platform. they don't want it to be where you post your resume and go to sleep and wait for your job offer. they want people to read news and they are getting more engagement and page views and ad revenues. >> the hr departments and promotional activities at the companies. ? >> they've been strong with the talent solutions and they want to be a media company. >> are they competing with facebook in a way they didn't in the past? >> everybody is competing on the media stuff. there are only so many baby pictures. there are only so many resume lookups, now people need to go to these platforms to get their content, so they are all going in on this now.

twitter is going in on it now, they want to be second screen. facebook wants to be second screen. linkedin wants to be business news. everybody is going to engagement. >> why can't linkedin be the enterprise social network, why does it have to make a move to dilute or confuse the message? >> ultimately there's not enough usage if they're just the place where you go to update your job and look for jobs and do that networking. there needs to be something there that people go to read and media and content is how people spend their lives. there's nothing else for them to do at this point. they bought pulse which is basically a news reader app and it's similar to paper which is facebook's app for reading the news. it's just amazing to see everybody go at each other right now. >> you're not an analyst, john, but you do have a very special technical perspective on all these social media sites. >> yes. >> i'll ask you the question i asked the guy before the break,fy gave you $1,000 to invest for 20 years into which of these sites would you put it? >> i will totally equivocate and dodge the question by saying i would put it on a basket of them. i would basically buy an internet basket across linkedin, twitter, facebook, zillow.

>> is that because it's almost random who goes to the wall and loses their power? >> i can't pick which will ebb and flow in any given quarter but i know on a net basis these companies will replace the traditional media companies. >> i thought you would say you would put it all on buzzfeed. >> it already is. he gave me a new $1,000. >> it's simon's $1,000. >> i think investors should index into this stuff basically. >> have a good weekend. good luck with the schooling options. >> thank you. i find out about kindergarten today. >> that's one that people find quite a bit. >> everybody is finding out today in new york. >> are they? >> yeah, a lot of depressed parents. let's get a quick market flash. >> good morning. check out shares of cigna, the insurer posted weaker-than-expected fourth quarter, impacted by higher costs in its private medicare business. it also forecasts its full-year outlook below street estimates. the stock currently trading down better than 8%. a quick programming note here.

in a cnbc exclusive ceo david cordani will be on live in the next half hour right here on cnbc. kelly? >> all right, that's going to be one to watch, thanks very much. coming up next carl quintanilla joining us live from sochi with the latest on the preps for tonight's opening ceremony. we'll be right back after a quick break. [ male announcer ] the new new york is open. open to innovation. open to ambition. open to bold ideas. that's why new york has a new plan -- dozens of tax free zones all across the state. move here, expand here, or start a new business here and pay no taxes for ten years... we're new york. if there's something that creates more jobs, and grows more businesses... we're open to it. start a tax-free business at startup-ny.com.

we are the thinkers. the job jugglers. the up all-nighters. and the ones who turn ideas into action. we've made our passions our life's work. we strive for the moments where we can say, "i did it!" ♪ we are entrepreneurs who started it all... with a signature. legalzoom has helped start over 1 million businesses, turning dreamers into business owners. and we're here to help start yours.

turning dreamers into business owners. sometimes they just drop in. always obvious. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.

welcome back. we are just hours away from the opening ceremony for the winter oaf limb picks in sochi, russia, and our own carl quintanilla, we are missing him here. he's live there with the latest on the preps. carl, people are curious, just how many american tourists are showing up to this year's games? >> reporter: that's a big question especially as the stadium behind me is starting to fill up, kelly, the opening ceremony crowd. it's been a very long time coming but the open ceremony is actually here. sochi applied for the winter games twice before and didn't get it, but now that it's finally here, here's a look at the venues, the ticket sales and the tourists. ♪ there are a 11 new venues here in sochi including hockey rinks like the bolshoi and a record 98

events that's 12 more than vancouver, 82 more than the first winter games in 1924. some of the most expensive tickets are for hockey here in the bolshoi about $1,100 apiece, but overall about a third of the tickets have gone unsold and president putin says any empty seats will be filled by volunteers. as for americans attending, there aren't that many thanks to security concerns and hotel prices. the average cost of a stay here can be $14,000 per person per week and that's not counting the challenges of getting a visa and getting to sochi. you can probably tell it's warmer here in sochi than it is in new york city today, high temperature 44 today. by the way, the opening ceremonies will air on nbc tonight 7:30 p.m. eastern time, the ceremony officially begins at 8:14 p.m. eastern, and kelly, simon, david, got some interesting twitter information for you guys.

there have been 5.2 million tweets about the olympics over the past seven days. the number one country? take a guess. >> the number one country tweeting about the olympics. >> reporter: yes. >> belarus, ukraine, i don't know. >> reporter: all good guesses. japan. japan is number one with twitter engagement is very deep. russia's number two. netherlands number three. the u.s. is number seven after south korea, canada, and turkey, so we got to up our game. >> they had some figure skating i think when one of the japanese did very well last night. >> reporter: yes. >> hey, listen, carl, i see from brian williams' report on "nbc nightly news," this is the most expensi expensive olympics ever, a figure in excess of $50 billion. why is that? is that because when we see the ski runs they're actually having to artificially cause snow? why is it costing so much? >> reporter: there's a lot of that. the warm weather. russia's trying to make an impact, a statement. the scale of things. they're not the best at a lot of

different things that might require manpower so they have to add additional manpower. i will tell you, though, simon, there is a sense despite that cost it's only, i think can 2 1/2 percent of annual gdp and a lot of it's private money. moody's was out this week saying they don't expect it to hurt the government economically or not a big upside that we saw out of london. >> that sums up the russia under putin, that's a lot of private money. carl, enjoy the olympics over the weekend. obviously we'll be back with you on monday and a little bit later in the program. >> reporter: and we'll see you in the next hour, too. >> live from sochi, thanks, carl. straight ahead on this show, goldman's jan hatzius will give us his reaction over the jobs number. he'll be a disappointed man. if you wear a denture, touch it with your tongue.

if your denture moves, it can irritate your gums. try fixodent plus gum care. it helps stop denture movement and prevents gum irritation. fixodent. and forget it. i've got a big date, but my sinuses are acting up. it's time for advil cold and sinus. [ male announcer ] truth is that won't relieve all your symptoms. new alka seltzer plus-d relieves more symptoms than any other behind the counter liquid gel. oh what a relief it is. in today's market, a lot can happen in a second.

with fidelity's guaranteed one-second trade execution, we route your order to up to 75 market centers to look for the best possible price, maybe even better than you expected. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason serious investors are choosing fidelity. call or click to open your fidelity account today.

good morning. if you just joined us we're now an hour into trade and these are the stories we're "squawking" about here. expedia is the biggest gainer of the s&p up 13% and the travel website posting better-than-expected fourth quarter earnings helped by a strength of its earnings in hotels and it boosted the entire sector. gap shares rising 6%, the apparel retailer reporting a

surprise increase in january sales up 1% on a year ago. gap also expecting its fourth quarter profits to top consensus estimates. netflix, honeywell and union pacific joining the list of stocks also hitting a record high, kelly, as we head into the weekend. back to the big news of the morning the january jobs report and coming below estimates, goldman sachs, for example, looking for 200,000 jobs added last month and we only got 113,000 and jan hatzius joins us now for an exclusive interview. welcome. >> very good to be here. >> so how much of a disappointment? >> a disappointment, not a massive one, i would say, the headline was definitely weaker but there were some upward revisions. if you look at the sectors that were weak, doesn't really tell a very strong cyclical story in my view. education and health was very weak. government was pretty weak. there was payback in retail. overall i'd say it's definitely weaker but not a disaster. >> that does seem to explain the

market reaction which, you know, trying to make sense of it this morning sounds like the verdict they're delivering is we'll give it the benefit of the doubt. the ten-years rallied off the lows. >> i think that makes sense. also i think if you look at the -- unemployment rate declined. it declined for the right reasons. you got a rebound in labor force participation. big household employment gain. so, i mean, all these things are very noisy month to month so i don't want to put too much weight on that but this was for a change an unambiguously good report. >> hugely erratic, this series, i wish the market didn't focus on it but it does, that's a fact and it obviously moves the market. is the economy slowing down? >> i think probably a little bit in terms of the output side. if you look at gdp in the second half of last year, 3.7% on average and the first half of this year is probably going to be a percentage point slower. i think it's mainly an inventory

story, it's going to be some weather. i don't think there was much weather in this employment report, but clearly january and february numbers are going to be affected. >> don't we get caught out, though, year after year on seasonality? we got warm weather and currently if i'm wrong at the end of the first quarter and we had great job growth and then we kind of gave that back. i mean, every year, we seem to go through this distortion and not really quite knowing where we are. >> that's one reason i think for why you want to not put too much weight on any individual number and you syou said that about th household survey and i agree, and put some weight but not a huge amount but the same calls for the establishment survey numbers. when you are running 230 or 250 for a couple of months, you probably want to take a little bit of a discount to that and i think you want to discount the last couple of numbers a little bit also. >> so, if this is a relatively clean read on how the labor market is doing and the unemployment rate is now 6.6%,

what does that tell us? especially about fed policy at this juncture. >> i mean, i think it does say there is some progress in the labor market clearly. and i think if -- not just the unemployment rate but the u-6 rate the broadest measure of underemployment that came down by 0.4 it's what you want to see, it's still high. it's no longer sky high relative to history but it's still high, so i think it still says there's quite a lot of slack but less than there was. the one thing that i think is important in looking at all of these slack issues is the behavior of price and wage inflation which has continued to come in on the lower side. >> earnings, again, were a disappointment. they were only up 1.9%. >> year over year. so i think that's sort of telling you that while the unemployment rate is, you know, closer to a normal rate, there probably still is quite a lot of slack. >> this idea of the lack of momentum, it seems as though year after year we have a period where we seem to be sustaining some significant momentum in terms of the economic growth

only to see it go by the wayside again and again and it appears to be happening yet again. why? >> i wouldn't be as negative about that. i mean, to me it looks like we have hit a pothole and i think the inventory moves can give you those kinds of potholes. you had a lot more growth in the second half of last year than i think anybody expected in the middle of the year. but some of that was basically borrowed from early 2014 because of the inventory acceleration. i think we're going to be going through that adjustment over the next couple of months that going to mean somewhat weaker numbers. but overall i think we're still in a better place from a growth perspective than two or three years ago. >> the debt ceiling today i believe is officially reinstated. where does that leave us in terms of how much cash the treasury has left and how quickly they have to act to raise it? >> they still have a few weeks with the usual extraordinary measures which aren't that extraordinary anymore because they've been using them a number of times. we think probably early march

the treasury secretary has said it needs -- really needs to be raised by late february to take no chances. we think that will happen eventually. we don't think it's going to be the very last moment but clearly it is another uncertainty in an environment in which the uncertainties are already look bigger than a lot of people thought at the end of 2013 i think. >> jan, what's your considered view of the market now? what does everything that we've now just discussed mean when you boil it down for where the stock market is now and where it will go? >> i think in general we still have a relatively friendly environment for stocks in terms of our forecast for the economy. we think that growth is going to be better than it's been over the last few years. we think that still is quite a lot of slack. inflation is below the fed's target. janet yellen is probably going to want to, you know, nurse the economy back to health and to higher levels of employment. when you add that up, the economic environment looks pretty friendly. of course, the market's went up

a lot in 2013. and that's one reason why our equity strategists expect only small gains in -- >> single digit gains in the beginning of the year? >> yes, single digit gains in the s&p. and, you know, i think that's -- that's more a valuation call than an economic environment call. >> just real quick on the health care employment side of things. this could be real interesting because after moderating price inflation across health care are we now seeing this in the late -- >> jobs gain over the last two months, it's the weakest on record. and, you know, it does jump around once again, always coming back to the same theme that you never should put too much weight on short-term moves. but it is perhaps it could be related to some of the weakness in the health care sector from a sort of nominal and real spending perspective. but i think it's a little too

early to say probably. >> an important area to watch. jan, thank you so much for coming in this morning. appreciate it. jan hatzius. >> you always make sense of confusing stats, jan, i always understand them better afterwards. >> thank you. that is kind. ahead on the show cigna ceo will join us with a first on cnbc interview. his stock is down. he'll explain why he is giving the outlook he is. we'll always talk about the very controversial comments from the ceo of aol. program will be back in about two minutes' time. [ male announcer ] the new new york is open. open to innovation. open to ambition. open to bold ideas. that's why new york has a new plan -- dozens of tax free zones all across the state. move here, expand here, or start a new business here

and pay no taxes for ten years... we're new york. if there's something that creates more jobs, and grows more businesses... we're open to it. start a tax-free business at startup-ny.com. tdd# 1-888-628-2419 can take you in many directions. spark your curiosity we're open to it. tdd# 1-888-628-2419 you read this. watch that. tdd# 1-888-628-2419 you look for what's next. tdd# 1-888-628-2419 at schwab, we can help turn inspiration into action tdd# 1-888-628-2419 boost your trading iq with the help of tdd# 1-888-628-2419 our live online workshops tdd# 1-888-628-2419 like identifying market trends. tdd# 1-888-628-2419 now, earn 300 commission-free online trades. call 1-888-628-2419 or go to schwab.com/trading to learn how. tdd# 1-888-628-2419 sharpen your instincts with market insight from schwab tdd# 1-888-628-2419 experts like liz ann sonders and randy frederick. tdd# 1-888-628-2419 get support and talk through your ideas with our tdd# 1-888-628-2419 trading specialists. tdd# 1-888-628-2419 all with no trade minimum. and only $8.95 a trade. tdd# 1-888-628-2419 open an account and earn 300 commission-free online trades.

call 1-888-628-2419 to learn more. tdd# 1-888-628-2419 so you can take charge of your trading. afghanistan, in 2009. orbiting the moon in 1971. [ male announcer ] once it's earned, usaa auto insurance is often handed down from generation to generation. because it offers a superior level of protection. and because usaa's commitment to serve current and former military members and their families is without equal. begin your legacy. get an auto insurance quote. usaa. we know what it means to serve.

welcome back to "squawk on the street," check out moody's, the rating agency posting better-than-expected earnings in the fourth quarter as its strong international business more than offset a pullback in the united states. the company also gave an upbeat

forecast for 2014. the stock trading higher by around 6%, so, simon, that's moody's, not to be confused with modi. back to you. >> i get it. shares of the health insurer cigna are lower this morning after the company reported earnings and a full-year outlook that was short of expectations. we're joined now by david corda cordani, the ceo of cigna. good morning. >> good morning, simon, good to see you. >> it's good to see you as well. thank you for sparing the time. why is it when you strip out the restructuring costs why are your net income streams falling and why are you being so conservative on the outlook moving forward? >> well, a few things, first, to put 2013 into context. we had an outstanding year. we grew revenues and earnings and the fourth quarter tends to be the lowest quarters from an earnings standpoint and we incurred higher medical costs from a medicare standpoint that we included in our 2014

guidance. 2014 guidance will grow. we provided a range of $6.80 to $7.20 and in addition we have about $1.8 billion of capital to put to work in 2014 that is not factored into our guidance, so taken as a whole it's a very attractive result coming off of 2013. >> yeah. let's talk about the investment. and i guess we should explain to people that most of your revenue comes from administering benefits for companies mostly large corporations. we've heard a lot about public exchanges under obamacare. what you're embarking on is the build-out of private exchanges. i wondered if you could explain to us how they will work, why they're important, and whether as part of your decision to roll out these private exchanges you believe that there is not sufficient transparency at the moment and maybe some companies are paying too much and some employees are paying too much for their health care. >> well, simon, first, as a corporation, about 60% of our company is u.s. health care. the other 40% is split between

disability operations in the united states and a global operation. for the portion that's health care, the vast majority of that business, you're correct, we sell and service employers and the vast majority of that is transparent self-funded relationships, which we believe in because it aligns the incentives between ourselves, the employer, and their employees and it provides a level of transparency. to the core of your question, we see some of the private exchange vehicles as a way to further that transparency by providing more choice to individuals, to design the benefits that best work for them, but through their employer relationship where they're able to garner the wellness, the prevention and the support programs. >> david, good morning. we spoke to your counterpart at aetna yet and one of the issues they've been struggling with whether they'll be able to raise premiums enough to continue their participation in the obamacare plans and programs. what can you tell us about the estimates that you guys have if

you'll have to similarly raise prices or face the potential of pulling out of some states? >> for cigna, the public exchanges are a very small portion of our overall portfolio. that's a historic issue. we did not participate in the small employer and individual market by way of history. so, this presented a new market opportunity for cigna. we entered five states in a limited number of cities in those states, and think about that order of magnitude, maybe 20,000 new customers in 2014 for the month of january, on the public exchanges. so, very small and very focused. we're going to continue to monitor the performance of that and determine whether or not we expand or contract that going into 2015. at this point it's a very small portion of our portfolio. we are cautious because there's a lot of moving parts within that as relates to the way the way the benefits are designed, the rating process and the network configurations. >> i'm sure from the obama administration's point of view they'd like to have you guys participating, you and other

insurers, i mean, if you are only signing up 20,000 new customers, i understand for your business, it might not make a lot of sense for you, what would it take for you to broaden out the participation and try to get more plans and get more involved in this space? >> we started with a very focused approach in five states, we picked states that were critical to us and more importantly where we had rather advanced physician collaborative relationships. we've gone to market with those physicians. our bias is to continue to grow this. our bias is to have the services and do so with our physician partners by leveraging those shared relationships and collaboratives. to the core of your comment of what will it take, we need to make sure there's adequate benefit fliexibility for those who want i'll call it more core basic benefits that have prevention, wellness and catastrophic care as well as those that want more comprehensive benefits. adequate choice in how to design the networks and physician access, so the higher-performing physicians could be rewarded differently and facilities could

be rewarded differently and the level of dialogue we continue to have with leaders in washington to make sure we're an organization that believes in transparency, choice, and value and that the environment enables that on a go-forward basis. >> david, let me ask you about some comments that aol's ceo tim armstrong has made to his staff. he was explaining why they were beginning to cut back on their 401(k) matches and that was because of rising costs. what he said to the staff is, we had two aol-ers that had distressed babies that were born that we paid a million dollars each to make sure that those babies were okay, and that's one reason why they're cutting back on benefits to the staff in other ways. can you -- i don't know whether aol

>> employment base. it smooths itself out because of the law of large numbers, 25, 50, 75,000 employees. when you get to smaller employers, 300, 400, 500 employers, they tend to need another program on top of the self-funded programs to smooth it out. it's something cigna does and something we feel is very important to provide the predictability for those inevitable events of a premature baby or a catastrophic illness, it's an important part of what we do every day. >> you're basically talking about reinsuring. how common is that? how many companies do that? how many are actually exposed as tim armstrong's company clearly is to that lumpiness? >> so, it's always difficult to make generalizations, but if you think about it in terms of categories, to the largest employers, the national account employers, the top 2,000

companies in the united states, they typically will self-insure 100%, or to your point they won't do a stop-loss program because the size and scale of what they have enables them not to do that. conversely if you go to a 500-life employer or below the vast majority of those will always provide some level of reinsurance or catastrophic cover. a lot of the health, wellness, preventive care programs as well as catastrophic care programs are becoming more advanced so we're able to get more moms to full term, so we're able to identify a prediabetic before they become a diabetic, so we're able to get somebody confronting or challenging cancer diagnosis with a center of excellence. and that's the way we actually add value when we work with our employer clients to be able to get the best value for their employees as well and that's what keeps the costs down. >> david, it's good to see you. thank you very much for spairpg the time to join us today. david cordani, the ceo of cigna. have a great weekend. >> you, too.

the illinois attorney general said the u.s. is facing breaches that face a danger to the economy. she'll join us and tell us what to do to protect americans, that's when "squawk on the street" comes right back.

welcome back to "squawk on the street." i'm josh lipton. news here on gopro. they filed for a confidential ipo. the maker of the gopro camera, of course, you will find these cameras just about everywhere. they're, the rolling stones, nick woodman, the ceo and founder of gopro calls it a life camera. started it to capture video of him and his surfing buddies. forbes pegs nick woodman's worth at $1 billion. again, the news, goprofiling for a confidential ipo. >> topical as the olympics are upon us. thank you, josh. let's get over to the cme group now. rick santelli with the santelli exchange. good morning, rick. >> good morning, kelly. let's start with topic number one. that is the jobs report. and after going through all the tables on the bls website, table

a, table b, i arrived at the conclusion i think that many are, including the markets, is i see now the dow is still up, but not up as aggressively as it was. but maybe some traders believe there could be some fed blinking here. interest rates have moved back down a bit. they seem to reject that 270, 271 level. but in the end, it certainly appears that slowing is occurring. we've seen this movie before. in terms of how the eventual equity market respond because the biggest fundamental is the equity markets. i continue to say that you can dance around this as much as you want, but put it in the extreme. if we ramally 20%, i think rates will go up dramatically. meaning stocks rally. if stocks break, 10% or 15% from her, i would be shocked if rates didn't go down. is the entire investment community going to sbi into that? i think they're going to reach for potential saving lines to see if maybe the fed will slow down.

but should they slow down? i think that this is continually a case of, you know, backing into the garage instead of pulling into the garage. quite simply, they're trying to back in. trying to restock the banks like they can restock the economy. you need to pull in because backing in doesn't address where the money should be going. the structuralists of jobs, the journal had a big report on jobs and men in the workforce yesterday. one out of six men working age men are not employed. this is not going to get fixed by backing in. the final issue, you know, look at these charts of spanish and italian ten years. you notice how they're moving lower today? here's why. everybody was luking for that german supreme court issue regarding, you know, has the ecb done too much, is draghi on stable ground? they don't think so. it didn't matter because they still kicked it to the european court of justice. where is where 28 justices weigh in. the long of the short of it is, mario draghi's bazooka is

probably still intact so you want to continue to watch the fix necessary on these yields in southern europe. probably continue to move lower. once again, backing in there as well. back to you, simon. >> that was really well put. thank you, rick. straight ahead on the program, did you nail the number? we're going to reveal the winner of this year's prize -- of this month's prize, a sochi olympic backpack signed by the whole "squawk on the street" team. don't forget the number, 113,000. how close were you? y bank reallo hidden fees on savings accounts? that's right, no hidden fees. it's just that i'm worried about, you know, "hidden things." ok, why's that? well uhhh... surprise!!! um... well, it's true. at ally there are no hidden fees. not one. that's nice. no hidden fees, no worries. ally bank. your money needs an ally.

fifteen minutes could save you fifteen percent or more on car insurance. everybody knows that parker. well, did you know auctioneers make bad grocery store clerks? that'll be $23.50. now .75, 23.75, hold 'em. hey now do i hear 23.75? 24! hey 24 dollar, 24 and a quarter, quarter, now half, 24 and a half and .75! 25! now a quarter, hey 26 and a quarter, do you wanna pay now, you wanna do it, 25 and a quarter - sold to the man in the khaki jacket! geico. fifteen minutes could save you... well, you know. in a we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present.

okay. the jobs report is out. did you nail the number? all week long we've been asking you to tweet us your prediction for the january nonfarm payrolls. lucky winner will receive this of sochi olympics backpack signed by the whole "squawk on the street" team including carl before he went over there. we'll announce the winner an hour. did you guys venture a guess? >> we're not allowed to officially enter, i believe. >> friends and family are disqualified. >> we could really influence the result because it comes externally. >> i know you wanted to rock this. >> i love that thing, man. that is a good looking backpack. >> i will tell you market seemed to be okay with how the jobs number came in.

>> i know. i don't know in it was an expectation somehow that you get a taper of the taper. or more perhaps that the participation rate was up ever so slightly. but whatever the reason, maybe it's just more of the same. >> one thing's for sure, whoever wins is a pessimist. >> 113k. >> nowhere near consensus. >> i always love seeing who it is. david, good to see you. >> have a great weekend. >> we'll brave another round of snow. here's what you might have miss f ed if you're just tuning? >> welcome to "squawk on the street." here's what's happened so far. >> january nonfarm payrolls increasing by 113,000 jobs. 6.6% is the unemployment rate. >> can you really say that the taper won't be interrupted if this continues? >> again, i can only speak for myself. i will say this about the rest of our committee, they're not swayed by a single number. >> typically nots aasterisk thee

numbers. but you know what, david, i actually think the weather is not a bad excuse. the market is coming down big. okay? everyone is selling apple. freaking out. what do they do? go ahead. make my day. right? it's a little -- it's a clint eastwood buyback. i love that. i congratulate them. bravo for listening. >> i think we've continued to see steady job growth. we've seen the unemployment rate coming down much more than most anyone expected. you look just a couple months ago. people didn't think we would be at 66 until the end of this year. >> if you look at the sectors that were weak, doesn't really tell a strong cyclical story in my view. education and health was very weak. government was pretty weak. there was payback in retail. overall, i would say it's definitely weaker but not a disaster.

>> good friday morning. we're live here at post 9 at the new york stock exchange. we begin this hour with a check on markets after that payroll report hit a slight disappointment. you could say. but markets are taking it in stride. at this hour the dow is up 46 points. the s&p 500 by about eight. the nasdaq by about 29. now, to be up for the week, the dow has to hold these levels, which is pretty remarkable given the sharp sell-off of more than 300 points on monday. feels like ages ago. shares of wyndham worldwide this morning. the hotel chain also raised quarterly dividend to 35 cents per share from 29. meantime, shares of gap all rallying today after january same-store sales dmam better than expected. the clothing retailer also projecting quarterly profits that would top analyst expectations. almost 6% move higher. here we go. let's have a look at the road map for the next 58 minutes. the u.s. economy outing a

disappointing 113,000 jobs in the month of january. so why are stocks so well into the green? apple announcing the repurchased $14 billion of its own stock in the last two weeks. since those disappointing first quarter results came through. we'll have more on that. and some potential new categories that apple may or may not be working on. investors certainly aren't connect that well linkedin this morning. the stock is sliding even though company posted solid earnings for the fourth quarter. shares of bitcoin, bitcoin prices are plummeting after technical problems at a major bitcoin exchange. we will take a closer look. we'll also take you live to russia. carl quintanilla is there for the winter olympics in sochi. we will be talking to him as well. but first, more on markets. u.s. stocks in the green this morning as we noted. following that weaker than expected jobs report. let's bring in cnbc contributor

rich bernstein and michael, chief u.s. economist with jpmorgan. it's great to see you both. and, rich, first to you because the market reaction here is interest. does this suggest that investors are taking the report in stride? >> yes, to a certain extent, you're right. certainly if nothing else it's going to keep the financial news media employed for another month trying to figure out whether this is weather induced or not. but realistically, on monday, remember the attitude was it was the end of the free world as we know it. this report, as weak as some people might argue it is, some people might argue it's not, whatever the report is it's certainly not an end of the free world type number. i think that recovery that we're seeing from the beginning of the week where everybody thought it was the end of the free world, that's still on going. the recovery is still ongoing. >> in the meantime we've gotten data like the trade report which points to a lower gdp number in the fourth four than we first thought. mike, what is the trend here for the u.s. economy? and we're starting off weaker in

the first half than in the back half of last year, is that just a blip or is it something more significant? >> well, i think for now it looks like a blip. this morning it was consist tent with other da that we've seen for december and january. and we are expecting gdp growth to slow down a little bit in the first half of this year. the second half of last year was very strong. unexpectedly strong. and so a little payback here is, i think, not too surprising. i would agree it's not the end of the free world as we know it. but it is, i think it's hard to sugar coat it. we didn't find a lot of technical issues. i don't think you can dismiss it as weather in my opinion. so it is a genuine disappointment, it's not, i don't think, signaling significantly below trend growth at this point. >> rich, before we go any further, i'm slightly concerned that you think that employment within the financial reporting industry should be taken month to month. i don't know if you know something that we don't. we will leave that to the side at the moment. >> day by day. >> yes. what you guys are saying

underlines the fact that we have a situation where there is a difficu divergence. let's be brutal about it here. you have a record share of national income that is going in company profits at the moment. even if you go back to the 1920s it hasn't been as big a share of the economy as it is now. and if you have a subdued labor market that's good for profits because it will keep the wages down and, i mean, you could have an argument like the labor unions, if you raise the minimum wage you would raise overall revenue. rich people aren't expecting great revenue grout. they're talking about top line growth, cutting costs. am i correct? >> simon, you raise a very important point because you just highlighted one of the reasons why the market has been up so much over the past three, four years. we can discuss whether it's an interesting socioeconomic discussion to talk about, you know, the spread between the corporate sector and the household sector and the spread of profitability and the spread of national income. the reality is the stock market

doesn't care. the stock market hears about corporate prompts as you correctly point out. people right now are very worried about margins and labor costs per share on margins. this report doesn't argue this doesn't happen. but more importantly i think the shift over the next several months, maybe the next year or two, is going to be away from a discussion on margins more to a discussion on market share. because when margins are under pressure, generally companies begin to fight for market share. actually what we're doing is we're looking for growth stories that are purely related to market share and not necessarily to margins. so your question is a very, very important one. >> at the same time, mike, it's interesting that part of the problem, if you want to put it that way, is high worker productivity lately. >> right. i mean, we did have a nice increase in productivity in the second half of last year. it looks like given trends so far this year productivity is probably going to step down again. i think over the cycle as a whole you seem weak productivity but weaker wage growth.

so it would be nice to see wage growth pick up but it would also be nice to see productivity pick up as well. >> that's a move we could look forward to if only it would happen at this juncture. thank you for your time this morning. >> thank you. >> thank you. we want to turn our attention now to apple. shares are up this morning, albeit slightly. the company announcing repurchased $14 billion of its own shares in just the past two weeks. the buyback is part of apple's previously disclosed $60 billion repurchase program. co tim cook tells the "wall street journal" it means we are betting on apple. it means that we are confident on what we're doing and what we plan to do. we're not just saying that. we're showing that with our actions. let's bring in walter pisek, wireless research analyst and our own jon forth has also joined us. walter, what did you think about what tim cook had to say? >> well, share repitches was new information. i think they were at a run rate of 5 billion, a quarter.

that has an immediate impact on earnings estimates. but the other interesting part of the article was he was saying a reasonable person would expect this -- whatever the new product is going to be this year to be a new category. i think if you look at wall street they don't think a bigger iphone or a bigger ipad is a new category. so i'm not sure whether that counts as a reasonable person or not. many people don't think wall street is reasonable when it comes to apple. but that was, i think, more interesting part of the article in the journal. >> i get that. i think in tim cook's defense what he says is it doesn't matter what wall street thinks of our product categories. it's whether they sell. whether it's been more ginnal improve ms to the iphone it's been much more beneficial to sales than actually wall street kind of expected. is it fair to say that, walter? that would be my judgment. >> if that is the new category, a larger screen iphone then they're not going to grow earnings next year. >> really? >> yeah. if you look at the developed markets and what's happening with iphone sales, what they're

foregoing in growth is the cheaper phone that's being sold in latin america and china. places where smartphone penetration is 30%. smartphone penetration is very high in these markets. if the new product category is just a larger screen iphone it's going to be a very challenging for the company to grow their earnings in 2015. >> walter, let's talk about expectations. we know that the smartphone market, particularly on the high end, is maturing. the replacement isn't quite what it used to be. there's all this talk of wherables and all these other things. no matter what, are we going to get growth in this stock? tim cook said he still considers apple a growth company. you've got to come back with something on iphone scale that's actually going to grow to move the needle at this point. and i don't see how wearables can do it. you can't charge 600 bucks for a mass market watch. >> wearables have a low asp. you're going tv to sell a lot of them. televisions have a larger asp but perhaps a lower margin

because of the cost of the actual television itself. but there's also services that they can get involved with and they can generate revenue which is high margin and potentially significant revenue. when i look at next year, if they can come up with something that generates $10 billion or $20 billion, i know that sounds like a lot of money, but apple has global distribution, and in great brand, you take that and divide it by whatever asp product you envision in your mind, it's something that they could do and something that they could grow. now, the issue is they're not going to grow 40 % or 50% anymore. we're talking about just getting back to 10% type of growth which should be good for the stock but, you know, the days of 40, 50% earnings growth are beyond this for the point that you mentioned, which is there's no other market as big as the phone market. >> have a good weekend. >> you, too. we have news for us back at headquarters. kay la? >> kelly, a very swift about face for an appointment of jpmorgan executive, blythe

masters. we don't know what that advisory panel was set to do. it had vague responsibilities. there's a lot of controversy invoked by this appointment yesterday. cftc spoeks person confirms that masters has withdrawn herself from the panel. the con tro shetroversy has bee subject of several investigations over potential energy market manipulation. the unit settled with the federal energy regulatory commission in july for $410 million over alleged manipulation of the electricity markets in california. and ferc sought to single out masters in that complaint for making false statements to ferc in prior testimony though it ended up just being a settlement with the bank and not naming mastzers specifically. the department of justice opened an investigation into that alleged manipulation. we haven't seen a resolution from that investigation yet but, of course, that could carry some

criminal charges as well if they do find something there. the commodities unit of jpmorgan, being sold, kate kelly was reporting. she was going to join the cfdc advisory panel. controversial for an executive that has been at the heart of so many investigations in the past year. and she's now stepping off of that board. just a day later. >> you might say poacher turned game keeper. thank you very much. social star for linkedin announcing acquisition of bright.com today for $120 million. jon fortt is here to explain what that means. >> it means linkedin is investing in the future on big data and also in other areas. talked a lot about china wanting to push harder there. that's an area of potential growth for them. talked about small and medium size business. we see that they are planning for r&d expenditures. higher than the street planned. people seem to have had a negative reaction to that.

not sure why. facebook said much the same thing. they're going to continue to investing in growth. i guess that's what you want to see a company like this doing, particularly with the multiple they've got. is try and figure out how to grow more. >> growth cures all evils. you know, it's true in economics. it's true for these companies. it's the hardest thing in the world sometimes. but if you've got it, you can basically be -- you're rewarded for it. >> what sort of growth are we talking about? are we talking about the number of people logging on or are we talking about capturing the bank? >> i think they're trying to push a multiple different levels. in china they want to get a larger share of that working population actually posting their resumes on linkedin. we also see them pushing their content area, trying to get more eye balls to frequently come back. once you post your resume, unless you're planning to leave your job or somebody else is trying to hire you away, you're not going back to look at your resume. you know what you did. >> i had my resume up for years. i'm still here. >> it doesn't change that much, right, simon? you and i are still here. there's got to be something to

pull us back there. and these are some ways that they're looking to do that. get more people in and get them looking more often. >> see you in a bit. you will be here to talk about other tech story within 30 minutes. >> i love running back and forth. >> thank you. it is almost time. the opening ceremonies for the winter olympics kicking off tonight in sochi, russia. we'll go live on the ground in sochi to give you a preview of the action in a moment. first, rick santelli, what are you watching today? >> well, you know, the games might not have begun in sochi, but the games have certainly begun on trading floors trying to decide how traders want to go home for the weekend after this report. we're going to have chuck beaterman at the bottom of the hour. a post-mortem on what really was a weak employment report. [ male announcer ] once, there was a man

who found a magic seashell. it told him what was happening on the trading floor in real time. ♪ the shell brought him great fame. ♪ but then, one day, he noticed that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their trading platform. ♪ [ indistinct talking continues ] [ male announcer ] so the magic shell went back to being a...shell. get live squawks right in your trading platform with think or swim from td ameritrade. i've got a big date, but my sinuses are acting up. it's time for advil cold and sinus. [ male announcer ] truth is that won't relieve all your symptoms. new alka seltzer plus-d relieves more symptoms than any other behind the counter liquid gel. oh what a relief it is. if you have a business idea, we have a personalized legal solution that's right for you. with easy step-by-step guidance, we're here to help you turn your dream into a reality. start your business today with legalzoom.

we're here to help you turn your dream into a reality. sleep train'sor presidents' day presidents' day sale is on now. save up to $500 on beautyrest and posturepedic. get a sealy queen set for just $399. even get 3 years interest-free financing on tempur-pedic. plus, free delivery, set-up, and removal of your old set. keep more presidents in your wallet. sleep train's presidents' day sale is on now. superior service, best selection, lowest price, guaranteed. ♪ sleep train ♪ your ticket to a better night's sleep ♪

♪ opening ceremonies for the olympics begin tonight on nbc, which is taking a big bet on the games. let's get straight out to our very own carl quintanilla, great to see you again live in sochi, carl. >> hey, kelly. yeah, it's a big night. the ceremonies are beginning almost as we speak. of course, you will see it tonight on the east coast, 7:30 p.m. on nbc.

but it also prestages a big weekend of coverage, of course, on sports events. 1500 hours of programming on nbcu platforms. 1,000 hours will streamed live on nbcolympics.com. will this be the most watched winter olympics ever? vancouver had 190 million viewers. most watched, record so far is lillehammer when kerrigan took silver. we will have hockey versus finland. men's speed skating and sunday night figure skating. curling begins monday right here on cnbc. and, kelly, simon, you know, one interesting customer service business story that we noticed. russians are really trying hard to smile. it's not something that comes naturally in this culture. it's actually considered not so sophisticated or smart to smile at a stranger. maybe suggests you don't have a lot of worries in your life. but some russian companies like

aeroflight are beginning to have service academies, like these volunteers, teaching people how to smile at a stranger as russia, guys, really tries to create a tourism industry, tries to create an atmosphere where russians go on vacation in the country and not outside the country. and that's just one aspect of these games. very interesting. have a great weekend. enjoy the coverage over the weekend. of course, we'll start looking at the medal board on monday and we'll hope that team usa is in first place. >> all right. carl, don't forget to smile. >> yes. you never have that problem. >> well, you know. we have a good time around here. hope you have a good time this weekend. great to see you. carl kequintanilla in sochi for us. epidemic of data breaches that have caused billions of dollars of damages to the economy. that's certainly what the illinois attorney general lisa madigan said yesterday at a hearing on capitol hill.

she'll tell us what that state is doing now to protect its residents next on cnbc. [ bagpipes play ] make it happen with fidelity active trader pro. it's one more innovative reason serious investors are choosing fidelity. call or click to open your fidelity account today. open to innovation. open to ambition. open to bold ideas. that's why new york has a new plan -- dozens of tax free zones all across the state. move here, expand here, or start a new business here

and pay no taxes for ten years... we're new york. if there's something that creates more jobs, and grows more businesses... we're open to it. start a tax-free business at startup-ny.com. but with less energy, moodiness, wand a low sex drive, i had to do something. i saw my doctor. a blood test showed it was low testosterone, not age. we talked about axiron the only underarm low t treatment that can restore t levels to normal in about two weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, especially those who are or who may become pregnant, and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. report these symptoms to your doctor. tell your doctor about all medical conditions and medications. serious side effects could include increased risk of prostate cancer, worsening prostate symptoms, decreased sperm count, ankle, feet or body swelling, enlarged or painful breasts, problems breathing while sleeping

and blood clots in the legs. common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. ask your doctor about axiron.

we're learning yet more about that massive data breach at target. today a vendor for the company says hackers actually broke into a data link that they used for billing between the two. and in the aftermath of that breach and others at neiman-marcus and michael's, questions about security continue front and center. the hearing in washington this week the illinois attorney general said the u.s. companies are not doing enough to combat these types of breaches. here now is lisa madigan, the attorney general of illinois. thank you for joining us here on cnbc. why do you say -- >> my pleasure. >> why do you say these companies are not doing enough? if you look at the testimony

that neiman-marcus and target gave, they were like, look, it's almost impossible for us to deal with this wave of cyber crime. we're victims and it's almost insurmountable. >> we see two different situations. we see when we have done investigations of data breaches that quite frequently we have companies noted ed ed ae ed ede common sense basic procedures. not using passwords, not actually patching known software vulnerabilities. they're storing data for too long. now, the situation as it unfolds with target and neiman-marcus appear to be very high level, very sophisticated attacks. that may be a different situation but certainly we already know that me could have put in place the chip and pin technology with the cards that could have prevented a lot of the fraud that has been taking place against united states consumers. >> lisa, that's one of the things i'm wondering about. you mentioned chip and pin. we're now hearing that this contractor, you know, there was

a data tap involved. there are so many different avenues that hackers can use to getting a cess often. they just use social engineering. do we need a bigger, more comprehensive approach to stopping this versus just looking at the company itself? i mean, it seems like there are a lot of different birds to choke here. >> absolutely. and so people need to understand that companies that are storing a large amount of consumer-sensitive data, they really are under attack almost constantly. but we also have to recognize that for large companies, for banks, for the credit rating agencies, for large medical providers, large retailers, they have to have really state-of-the-art security in place in order that that data is not going to be taken and used i'll his italy. whether it's by people in the united states or people internationally. so there are some minimum basic standards that have to be put in place in addition to making sure that we have strong security measures in place. >> okay. so, lisa, how do we get there? this is a free market economy.

do we use the free market and say, look, we will make the penalty so big when something goes wrong. we'll basically sue you real hard so that the board wakes up to this capital investment you have to make or do you basically legislate it? >> well, i think that what we have tried to do is to actually work with companies. make sure that they're notifying consumers when this happens. make sure they're putting in place the security protections necessary. we have tried not to have to go the route of either over-legislating, over-regulating or trying to penalize them because obviously these companies don't want this to be happening in the first place. it undermines consumer confidence and that's really the biggest challenge we're contending with right now. >> they legislate in so many areas of corporate life. why should there not be legislation to protect the consumer here? the employees are protected. many, many ways that you slice and dice it. >> you have legislation, notification legislation. there's a growing number of states that have also put in place minimum security standards that need to be put in place. it tends to be on a reasonable

standard. right? and so, again, it's tough to legislate the technology is changing so rapidly. but i think that there is some common agreement about you need to enkriptd data. you shouldn't be holding on to data for too long. you need firewalls. there is a lot of technological fixes that can be put in place. but it is a constant battle. >> lisa madigan, it's good to see you. thank you very much for joining us. attorney general for illinois. have a great weekend. thank you. >> thank you. now the bells are about to sound across europe. just a couple of minutes left in the trading session there. we'll get you details on the close and the impact it's having here after a short break. be a victim of fraud.y mind fraud could mean lower credit scores and higher interest rates when you apply for a credit card. it's a problem waiting to happen. check your credit score, check your credit report at experian.com. tdd#: 1-800-345-2550 life inspires your trading. tdd#: 1-800-345-2550 where others see fads...

tdd#: 1-800-345-2550 ...you see opportunities. tdd#: 1-800-345-2550 at schwab, we're here to help tdd#: 1-800-345-2550 turn inspiration into action. tdd#: 1-800-345-2550 we have intuitive platforms tdd#: 1-800-345-2550 to help you discover what's trending. tdd#: 1-800-345-2550 and seasoned market experts to help sharpen your instincts. tdd#: 1-800-345-2550 so you can take charge tdd#: 1-800-345-2550 of your trading. hi, are we still on for tomorrow? tomorrow. quick look at the weather. nice day, beautiful tomorrow. tomorrow is full of promise. we can come back tomorrrow. and we promise to keep it that way. driven to preserve the environment, csx moves a ton of freight nearly 450 miles on one gallon of fuel. what a day. can't wait til tomorrow. if your denture moves, it can irritate your gums. try fixodent plus gum care.

it helps stop denture movement and prevents gum irritation. fixodent. and forget it.

the european markets are closing now. >> that's it for europe. they're off for the weekend. green on the screen as you can see. the big news in europe today is that the german constitutional court gave a negative view of the draghi promised to intervene in the bond market. but it said it would go up to the europe pooep peen court of justice. it's another court. pro-european court. on the face of it, german constitutional court in german. on the face of it it's quite negative. in reality there's a silver lining. some like jpmorgan because they're t not going to get any rule for one or two years so draghi can keep his promise there and they might come back and say, look, you can actually do the intervention further for it if you -- basically, satisfy certain conditions. so very complicated situation on the face of it, negative, but

the analysis seems to be that it's quite positive for europe. we had some ceos moving stocks today with the words that they were using. the big steel producer says it's confident about the year moving forward. start oil, the norwegian oil giant, cutting back. cash position is better. on the downside today, air france, according to the french newspaper, may be looking at a $1.3 billion capital increase. and air france stock is down 3 1/2%. the european airlines are much less profitable than the american ones. we'll talk about that perhaps on another day. in the meantime, let's wrap it up for the week. it is, if you like, the comeback kid week for stocks. see how europe has actually managed to move into positive territory now after the heavy falls on monday and, in fact, the s&p 500, kelly, now doing exactly the same. over to you. >> it certainly is.

let's bring in dominic chu. >> like simon just said. the s&p 500 moving the way it is right now, interesting there because after that big let down on monday you're seeing it climb to flattish here for the entire week. so a nice rebound off of that. now, if you look at what's really leading the way higher today, it is those sick click kay sectors. industrials, consumer discretionary. those financial, all of those names are having solid gains today in this session. if you break it down into industry groups, industrials one of the best performers, specifically because of aerospace and defense. you look at names like nor up there group monday and lockheed martin. they're up on the day as well helping to push the gains higher for industrials overall. what's interesting here, if you look at some of these retails also a big one here. gap, ralph lauren, pvh corp., also showing signs of strength here. some concerns about retail in the past but not all positive. cigna down taking some of the managed care companies down

along with it. kelly, guys, back over to you. >> all right. >> okay. >> oh, sorry, simon. >> that's all right. let's send it back down to chicago, rick santelli has more on today's jobs report. more analysis this friday morning. >> indeed we do. we have what i call the throw master here, chuck biederman. welcome. thanks for taking the time this morning, charles. >> good to be with you again. >> all right. i guess before we get into flows, let's do a post-mortem. give me your impressions of the jobs data, 34,000 revisions for two months running november/december. i'm sure you looked at all the tables as i did today. >> the last few months, wage and salary growth slowed significantly after the fed announced tapering. it's about 100,000 jobs a month, which is what we've been getting now finally the bls is recognizing it. and we're not seeing -- we're seeing nominal wage and salary

growth of 2% before inflation, which is horrible and not -- it is not a sustainable recovery we're entering into. >> all right. on flows, the reason i like you on for flows is because there's a lot of stories out there on a macro level. i want you to touch on those. record outflows of stocks and inflows in the bonds. you even have more granular data for the first several days of february. lead in with that and then do the whole picture for me. >> we track flows daily. for the first three trading days of february we've seen a massive $20 billion outflow from u.s. equity etfs and mutuals which says that individuals panicked. conversely, with those $20 billion inflow into bond funds. now, historically flows of that magnitude over that short a period have been pretty good alpha creating contrary indicator. >> all right. now, if we take a step back and try to digest that under the con tekt text of what was going on

with the emerging markets, last on the chain in terms of the risk chain. have we peeled off another layer of the onion and probably will calm down a bit? i can probably looking at a ten-year chart we could spend time here between 260 and 280 for a while but does it change the generalized outlook that we're probably hoping for too much on gdp for the beginning or first half of 2014? >> well, as my old friend ed hart used to say on cnbc, markets trade their way to predition. and people panicked. growth seemed to be taken for granted and it's not happening. and so people panicked, emerging markets are the weakest -- the weakest link since it's the least liquid. used to be the over the counter nasdaq, now it's emerging markets are the ones that react the most when there's extra money going in and when there's money going out. >> all right. we have 20 seconds, chuck. i was really fascinated watching spanish and italian yields not

only for the last seven or eight months but for the last day or so as they expected this german court ruling. to me it goes to show that the moral hazards are going to run higher around the globe. because whether it's our supreme court on health care or german supreme court, china, nobody has the gumption to take the bunch pole away. your thoughts? >> i agree with you. as long as this subsidized prices, players are going to chase those markets and hot money is going to go there. you know, the central banks run the show. >> i agree, at least for now. thank you for taking the time today. have a great weekend. simon, kelly, back to you. >> let's look at the markets. stocks are higher. unfortunately actually the s&p 500 are broken back through a lot of the technical resistance that art cashin was talking about yesterday. this is we added 130,000 jobs in january. that is below estimates. art will be here to break it all down for us after this break when "squawk on the street"

returns. [ male announcer ] the new new york is open. open to innovation. open to ambition. open to bold ideas. that's why new york has a new plan -- dozens of tax free zones all across the state.

move here, expand here, or start a new business here and pay no taxes for ten years... we're new york. if there's something that creates more jobs, and grows more businesses... we're open to it. start a tax-free business at startup-ny.com. afghanistan, in 2009. orbiting the moon in 1971. [ male announcer ] once it's earned, usaa auto insurance is often handed down from generation to generation.

because it offers a superior level of protection. and because usaa's commitment to serve current and former military members and their families is without equal. begin your legacy. get an auto insurance quote. usaa. we know what it means to serve. coming up at the top of the hour, it's a roller coaster week for the market and we're not even finished yet. figuring out how to trade the big swings. lululemon is down but getting a big boost from a bullish upgrade. we're going to talk to the analyst who made that call. plus, investors made a historic move out of stocks and into bonds but are bonds really the play to be right now for

your money? we're going to find out that and much more coming up on the "halftime" show at the top of the hour. see you then. >> thank you. headline to today was that 113 -- only 113,000 jobs were generated in the economy in january. however, the market reaction has been to build again and we've had now a strong rally coming at the end of the week which is basicallier raised the losses we had on monday. joining us now, art cashin head of floor operations here at ubs. it's impressive, art. >> it is. i think you have to go passed the headline in the report and encourage people. the household survey was rather strong. it seemed to bear up the optimistic numbers from adb. a lot of the bls number, the headline number that we see comes from guessing and assumptions. they postulate certain things. >> and adjust. >> right. and then also the u6 which is

kind of all in showed even more marked improvements. the market decided at first that the headline number was terrible and said, you know, this isn't too bad. another thing, young people began working in a stronger vein. so that's something we've been looking for. >> so happy here, we're going to continue finishing up this -- this is still a rebound rally but if they can close above 1785 they can start next week. >> yesterday you were here talking about resistance levels and the difficulty we would have getting between 1770, 1771, to here. and you said there were a number of resistance level ace long the way. have we broken through all those? that's a good sign. >> it was very good. and cnbc gave them a big boost. we kept pressing against that 1771. >> i was going to raise this

because he was talking about rumors on trading desks about payroll report in the range of 300, 350,000. clearly unfounded as so many of the trading desk rumors republican what's interesting about the market action, well up yesterday on that news/hope, today we didn't get it and still rallying. does that suggest to you the correction has run its course? >> i think it might suggest that it could be winding down. i'm not sure that it's run its course. you won't know that for a couple of days. as i say, if we can close above 1785 that will give the bulls a little bit of a chance. and back to something you and i discussed yesterday, there is still some minor, gee, maybe the fed will tape ter tapering. it's not built in there. it will take another couple of weeks of data to really get there. >> let me ask you about one other startling data. investors have shifted a huge amount last week of money out of u.s. stock funds and into bonds.

$24 billion. were they wrong to do that in your view? >> i think usually when you get a move like that it's a contrary indicator. and it says people are overreacting to the news, to the fall, to concerns about a potential grash coming. and those things tend to reverse. what would be worse would be a smaller, slower trend over weeks and months. the one shot sud hemorrhage usually is a contrary indicator. >> what do you think this market goes from here? >> well, i think we still have some more work to do because the data isn't really crystal clear. but we see the dippers coming back. you know, we've heard people all along saying, oh, i'm looking for a correction. it's going to be my opportunity to buy in. when they're correcting everybody becomes petrify and

frozen. now they start to come back a little bit looks like the train is leaving the station. so you buy them. i will look carefully at the action on both monday and tuesday. and that will tell me whether kelly was hoping the correction's over or whether we're just going to turn over. >> speaking of trains leaving the station, have a good weekend shs art. >> i shall. >> thanks, art. meantime, shares of virtual currency bitcoin is plunging. losing about 20% of the value overnight. it has something to do with. we know we're not the center of your life,

but we'll do our best to help you connect to what is.

a big move lower in shares of bitcoin this morning. losing, in fact, 20% of the value overnight. sarah eisen joining us back from headquarters to tell us what's going on here, sarah. >> here we go again, kelly. the latest trigger for the massive sell-off. one of the major exchanges for the virtual currency. it's the third biggest in the world, saying it had to suspend bitcoin withdrawals temporarily because it's having technical problems. in a statement on the website the exchange says, during our efforts to resolve the issue being enkoubtderred by some bitcoin withdrawals it was determined that the increase in withdrawal traffic is hindering off efforts on a technical level. well, the question is why more withdrawals. they didn't say but it may be reled to apple's move yesterday to nix block chain. it was a popular bitcoin wallet app from the app store.

just the last of its kind. apple has been killing a lot of the bitcoin apps. mt. gox said it will be an up dade monday. every single day it seems like there's a new headline about a major company either dropping bitcoin or accepting it as money. that's been driving the swings in this virtual currency. in fact, just today the financial times reporting that telecom, a high frequency tech trading provider says it now is accepting bitcoin because of demand. so you've got these wild gyrations. but here's the big picture and the chart is really one of the most stunning charts lately. it has dramatically increased. 75 cents was one bitcoin in 2011. now we're in the mid 700s, we've had plenty of crashes along the way. does it make it dangerous as an investment? you have to wonder every time you see a 20% slide like this, maybe. but to quote tech venture capitalist, it's in the early

stages of growth, forming its own culture, forming its own economy. a game changing one. if you believe that, perhaps you will want to invest. but still just be warned there will be bumps along the way like this one. kelly and simon? >> i'll say it. it's dangerous. it's dangerous. let's just say it, it's dangerous. surely. >> do you feel threatened? >> to be in bitcoin. >> in you're in bitcoin, depending on when you get? >> it's a dangerous place to be. >> how about risky? >> i think if you have the stomach for it and you really believe like a lot of big investors do right now in silicon valley, that it is going to be something, getting in on the early stages may not be such a bad idea. more retailers are accepting it. more lawmakers are looking into it. >> i suspect they're selling the picks and the shovels though rather than buying the bitcoins themselves. >> we can debate this all day long. >> we will. there will be plenty more. gopro, the small wearable camera company is going public. they're filing for a confide confidential ipo and the latest tech company to do so on the

heels of much bigger business like twitter. recently boxed our own jon fortt joins us with mor more. >> what's dangerous is buying twitter using bit coins and shooting it on agopro camera, extreme investing there. interesting. nick has been talking about not just selling devices but also wanting to become kind of a media brand, to leverage gopro's brand identity. get people posting those extreme videos that they create with gopro. it's interesting. he talks to john chambers, ceo of cisco, about possibly buying this company way back when. chambers said you ought to go it alone. and he's done quite well with it. kind of a renaissance in regard wear happening. i consider gopro to be a part of it. google is stepping up a home automation company. now gopro looking to go public. it will be interesting if they have legs. >> stupid question. maybe apple should buy it. isn't it a wearable device?

>> it is. it is. >> didn't tim cook just say we have no problem spending ten figures for the right company. >> do we know how much it's worth? >> i don't know how much it's worth but i think they raised under 300 million. you would expect that there's somewhere at least in the single digit billions is kind of where they would like to be. certainly apple can afford it based on the weekend's pocket change. >> can i explain what this is here? do you remember the austrian sky diver, fearless felix in 2012 who jumped from a 24-mile high balloon capsule? he had seven of these strapped to him. this is the video -- because it was sponsored by gopro. this is the video that they just released, jon. >> i wonder if felix would invest in bitcoins because that is also dangerous. >> i think you want to talk about risk, yeah. how high was he, 12 miles? >> 24 miles. >> oh, my god. >> 127,000 feet, which is like five aircraft flights. >> what about the nature of this filing? it sounds like it's, what,

restricted? >> confidential. i don't entirely get it, aside from i know that with the new regulations you can -- if you're under a certain amount, you can file confidentially. jobs act a. wait a longer time before you have to show everything to potential investors. we'll see how long it takes for the numbers to become public. >> as we're still digesting the other numbers in this space. thank you, jon. seven minutes left the show. hope to see you next time. the u.s. economy added 113,000 jobs in the month of january. did you nail the number? >> the jobs report is out. >> january nonfarm payrolls increasing by 113,000 jobs. >> were you able to nail the number? if so, you will be the winner of the sochi olympics backpack signed by the entire "squawk on the street" gang. find out if you're the lucky winner, next on "squawk on the street." [ male announcer ] the new new york is open.

open to innovation. open to ambition. open to bold ideas. that's why new york has a new plan -- dozens of tax free zones all across the state. move here, expand here, or start a new business here and pay no taxes for ten years... we're new york. if there's something that creates more jobs, and grows more businesses... we're open to it. start a tax-free business at startup-ny.com.

we are the thinkers. the job jugglers. the up all-nighters. and the ones who turn ideas into action. we've made our passions our life's work. we strive for the moments where we can say, "i did it!" ♪ we are entrepreneurs who started it all... with a signature. legalzoom has helped start over 1 million businesses, turning dreamers into business owners. and we're here to help start yours. turning dreamers into business owners. fifteen minutes could save you fifteen percent or more on car insurance. yeah. everybody knows that. did you know there is an oldest trick in the book?

what? trick number one. look-est over there. ha ha. made-est thou look. so end-eth the trick. hey.... yes.... geico. fifteen minutes could save you... well, you know. we have a winner on nail the number winner this month nailed it right on the head with a guess that the employment report would show 113,000 jobs created. joining us now from the cnbc news line is our winner craig rumberg who joins us from

jersey. craig, congratulations. >> thanks, simon. thanks for having me. >> how did you get to that figure? are you a naturally pessimistic person because the consensus was far higher. >> yeah, p consensus is, but being in the staffing industry we have a pretty good year to the ground on what's going on and, you know, we canvas it at the end of the year. there really doesn't a lot of additional dollars like the full headcount so i didn't see a big improvement from the prior month. >> interesting. so what's your read on the economy moving forward then, craig? >> it's a little sketchy right now. as far as jobs go, you have a great competition for technical jobs. high demand. on the plflip side, you have le applicants on the less desirable jobs. improved this month but it's a driving force. i still think that at some point it leaves a lot to be desired as far as moving the economy.

>> craig, real quick. just on earnings, on wages. what trends are you seeing? would you describe hiring as better than wage or the other way around? >> i actually think that the big problem there isn't any wage or earning power growth. it's either equal or less than what they were earning before and i also think that, you know, part of the reason -- >> all right. in the meantime, we'll be sorry to see this prize go, craig. >> simon's grown quite fond of the backpack. >> yes, very, very fond of that. congratulatio congratulations. thank you. >> thanks, guys. let's have a quick check of the markets. we've hung to the gains we had early on. the online travel agencies which are doing well after expedia reported last night. good strong hotel growth. that's feeding right the way down, for example, travelocity.

they have a deal to kind of help each other, travelocity and expedia. we'll be talking to a lot of the ceos. >> also perhaps overlooked amid all the news and earnings reports we've gotten are the numbers the retailers are giving us about january, gap. take a look at these shares moving higher. same-store sales, again, the shares were on the move in the range of 5% or 6%. pretty big news for owner of gap, banana republic, old navy. comps for january, retail came in better than expected. it was i'med by l brands, owner of victoria's secret. >> interesting. continuing market coverage, of course, throughout the afternoon here on cnbc. and don't forget a lot of our team are also over in sochi. so we will be keeping you pl plugged in with what's happening at the winter olympics as well. >> lots ahead on "the closing bell" this arch. >> oh, yes, the "closing bell" with kelly evans. as we approach noon on the east

coast, scott wapner is standing by with the "fast money halftime report." good rebound. >> highs of the day right now, sim simon. what a roller coaster ride of a week it's been. now we're all wondering is the correction over, has it run its course, is there more to go, is it time to get in. you guys have a great weekend because we're going to answer all of those questions right now welcome to the "halftime show." free market, fair markets. why were investors acting so bullishly before green mountain's deal with coke? well, the najarians get to the bottom of more unusual activity. stocks versus bonds. which is a better bet for your money with volatility ruling supreme? traders square off against blackrock's rick reider. lulu, is it time to add this battleground name for your portfolio? pete najarian, brother jon, mike santoli and trader ben is down at the new yoorew york stock