it does take two to make a thing go right. good morning and welcome to "squawk box" on cnbc. i'm andrew ross sorkin along with joe kernen. becky can't shake that cough. we hope she feels better. hope to see her on monday. we have a lot to talk about. it is jobs friday. our top story today, we're going to get the march jobs report and the markets, they're waiting to see if the u.s. economy is starting to heat up after that brutal winter. let's take a look at the estimates here. the numbers to beat, the consensus is 200,000 for nonfarm payrolls. that's up from 175,000 in january. the economists are expecting unemployment rates to continue on a downward trend, falling to 6.6%. and hourly wages are expected to tick the up. all of that is rt staing at 8:30

eastern time. what is going to happen? >> we tried to do that last time to make people guessing. i guess -- >> every time. >> not really. it's business news. and we do our best to try and get something going around it. but the one thing that makes this a little more interesting is some of the whisper numbers. did you see how high they get? >> how high are they? the whisper numbers are as high as 300. >> 300. do you think people can hear us? >> yeah. >> why are we whispering? >> yeah, 300. meanwhile, dallas fed president richard fisher came from around the world saying the central bank must avoice being locked into calendar based policy commitments. in other words, they're data dependent. he says forward guidance should be flexible enough to allow for changing conditions. he is currently a voting member of the federal open market committee. as i said, he made his remarks

at an appearance in hong kong. he's a good friend of the show. and i don't -- i don't know, are those the two headlines? neither one of those things are comforting in terms of -- of new news. did you hear it? we should set countercommitments and be flexible? let's check the markets. the s&p is called higher today prior to having the numbers come out. the ten-year has -- the yield has been inching up a little bit. 2.79%, though. it's below where it was when we were talking about it and the taper was about to start. we'll see if there's any movement today based on this the jobs number. this is the euro, the pound and the yen as there always is every day. there's some type of bank fine.

>> let's talk about this one. bank of america now reportedly close to a settlement with the consumer financial protection bureau this time over its marketing of credit card product. "the wall street journal" reporting that the bank may pay more than $800,000 to settle allegations that it thwarts customers to sign up for settlement products. this settlement could be announced in the coming days. take a look at shieares of bankf america today. >> you're not ordering that. >> absolutely take a listen for a sound bite. how about please take a listen? oh, if you want, take a look. >> if you're interested. it's 17.19 is what the price is. you know warren buffett, he's looking at the prices in an easy way. >> in the morning, you know, they don't want to be told what to do. >> not a lot -- >> opportunity to -- >> so you have an opportunity to look at the -- >> if you'd like to keep watching and find out what is happening next, you can. google, their nes lab is now

halted the form alone says over a possible default. >> the maker of halt of smoke alarms have discovered a defect. this doesn't do that horrible beeping. there's none of that. it starts talking to you in a voice. there's a fire, there's a fire, there's smoke. it's calming. >> that's what i mean. i want to know if i'm, like, drifting off and i hear some -- >> you know that whoop whoop -- >> i like that. >> you like the noise? >> love my adt system. >> warning, warning, danger, danger -- >> i bypass it. >> but this will tell you that -- >> you have an alarm system,

right? do you have a hokie one? >> our alarm system is called a door man. >> hopefully he's not a sleeping door man. if you have questions about technology, you might want to -- >> i should come to you? >> well, i just happen to be a person who downloaded albums. >> you did? >> on to my i phone. now, listen to this. i have a little cord. there's a thing in my glove box that i plug something into. into the car. my car plays music. >> wow. >> my car plays my iphone. >> i went to apple, i spent four hours there at the apple store yesterday. >> they helped you? >> i had to bring my owner's manual of my car into the guy, to the genius desk. after i had already been there for a long time, been out and back to my car like six times. but i'm going through a phase. i don't know what caused it.

i get teary. all morning long it was the thing to -- >> and you downloaded it. >> it costs me money to do it, but it was worth it. >> we'll talk about this, a little later. i was going to buy some cds on on amazon. who would buy a cd now when you can just download it on to the -- is this mp3 thing that you've always talked about? does this have anything to do with shawn parker? >> no comment. considering bike murky systems, the aerospace giant boeing is looking to acquire that supplier. mercury is a value of only $440 million. it offers big data processing systems, software and services. the company is including boeing, lockheed martin, northrop

gruman. boeing has done really well. it's still off a little bit from that two or three monthsing baub it is close to the best levels its ever seen, which is about 140. >> big day ahead in the ipo land. investors lining up for grubhub. the online food ordering service from those of you in new york. to them, it's called seamless, which is what i use. seamless webb. all the wall street guys, you can order food to. if you're an analyst on the street and at 8:00 at night i wanted to get dinner, you would do it on your iphone and the food would just show up. grubhub pricing its shares $26 a share higher than the expected $23 to $25 range which has been

raced from $20 to $223 on tuesday. that gives grubhub a valuation of over $2 billion. so this is basically a messengering service. $ -- >> not a whole time restaurant suitable forte out, are they? >> not all. and not all restaurants -- >> continuing to keep it hot. >> and not all restaurants do it. >> seems like you're in for an expensive proposition if you do that every night. i mean, you need to cook at home. you can't get restaurant food every night. >> correct. but once a week, maybe chinese, that's what it is. anyway, the stock exchange under the ticker grub. >> you said it's going to be under the symbol box, b-o-x.

it could be ba-u-g-h-s. >> in my house we do a lot of spelling out. grubhub merged with its competitor seamless last summer. the ceo will be on "squawk on the street" later this week so you can check that out. >> is that matt malone? is this another one old photograph? >> no. he's a very young guy who came one a clever idea. >> god all mighty. >> a mark zuckerberg idea. >> i saw his picture on a milk carton. >> i think he's in his late 20s. maybe early 30s. >> i'm not jealous. >> no. >> there are a couple other ipos today worth mentioning. ims health trades today.

and then the opower is going to trade on nasdaq. they will show customers how much manager they are using. >> i thought that was different than -- you know what else i figured out? >> what? >> they showed me the power of siri. do you have any idea what that is? >> yes. >> call mom. when i leave here, i want to be reminded to call my wife. play, ladies of the canyon. so anything i want to do, i can do on siri. yes been. >> we mine me to call becky quick to see how she's feeling after the show. >> i'm sorry, dave, i can't do that. >> that is cool.

>> and what is it called? that is cool. >> the whole environment of the apple store the, they get -- they all look the same. it almost looks like a colt, but they're so good. everybody says hi to me and when you're leaving or hope -- what is that called? hope. the whole environment. i think every apple store is consistently like that. and i think it's neat the way that's do it. anyway, david letterman is calling it quits. and i told the people upstairs i remember his appearance before he was ever on -- on "morning & ". >> i used to stay up in junior high to watch him. it was really late. >> by the time he was on, i was not a young person watching this

hip young guy. i never -- to me, he followed arsenio hall. i didn't get to watch him much. >> he plans on retiring from the late show on 2015. he made that announcement on thursday. >> we agreed that we would work together on this circumstance and the time thing of this circumstance and i phoned him just before the program and i said, leslie, it's been great, you have been great, the network has been great, but i am retiring. what this means now is that paul and i can be married. ♪ >> you see, a lot of the jokes, i always thought that -- they said they were funny just because i didn't understand them. i don't know. i was a leno guy. there's the mork & mindy

episode. and he was a weather man -- he didn't blow things up. he was a weather man in indianapolis before. have you ever seen "mork & mindy "on "? >> i did, years ago. at that point, he was probably on repeats. >> this happened in boulder, colorado. he's 66 years old, which i obviously -- >> a young man. he doesn't need to retire. >> he began hosting the late show in 1993 the. after leaving nbc, and there's no media plan about who will replace him, there's speculation about craig ferguson who follows him on cbs. and then has a woman -- >> chelsea hammer. >> had that space? chelsea handler recently announced she's leaving the e network and then there is stephen colbert. that would be a big step up for him at this point.

i'm going to the leave it there. no comment. i'm not going to talk about this guy. letterman got more -- we talked about that, he got rough towards the end of his career. did he not? >> he became political. >> you do it on -- >> i have a little bit of a sense of humor. i don't need everything laced with -- >> and you haven't been -- >> we vulgz. >> we got do policy issues. we try to keep it way down. j. lo is buying fuse and she beat diddy. remember, they used to date. i love the drama like this. this is not just a board room dram drama. this is a -- >> you love -- >> and a merger. >> there is no pop tar too low

brow for you to try to bring into business news somehow, right? >> absolutely. kim kardashian. >> of course. the real estate guy. >> the real estate guy. >> frederick. >> he's going to philo. >> you know who else is going philo? >> who? >> the superstar ross westgate. he's a hollywood star. >> he is. ross westgate -- >> that would be nice. >> good morning, joe. >> he is the chauffeur. >> no, i was just film of the film, "the chauffeur." ahead of the employment report today, european equities, andrew

and joe, are a little bit firmer. 6/3 the. advancers outpacing decliners. the dow jones stoxx 600 weighted ahead of the employment report. yesterday the ftse was down some 10 points. this morning, it's been up 30 something around that. 29 is where we stand at the moment. we are pretty much on the session high. sweat la dax, plenty of gains. and he did remain fairley dovish. there is concern he may have to do something later on in the year as inflation stays low, although it may not. we'll see what happens. as far as the sector breakdowns today, this is where we stand. technology telecoms, retail, health care all slightly weaker. the gains we're seeing, resources up 1%. autos up 0.9%. travel leisure is up very much the cyclical part of the market

is a little firmer today. we, of course, got more speculation coming out. we'll get more stimulus out of china. we've got a bank of ya pan meeting beginning next week. are they going to come out with more stimulus, as well. bearing in mind we have the sales tax hike bouncing through to the resource sector, as well. there's one stock worth pointing out this morning. remy cointreau has been up higher by 2.27%. though follows being picked up by san tori. remi is maybe not a bad target. the top management has been leaving the country in recent years. they've got a 2.9 billion market cap with shares about 40% below where we are in february 201.

now, it's per speculation, but nevertheless, the stock has moved on that news today. one to keep your eye on. that's where we stand right now in europe. >> all right, boss, thank you. appreciate that. do you think maybe he thought, wow, when is my nemesis? do you think when he's out there, here is my chants, finally, we have this new guy coming in. and fallon has huge ratings. do you think he just said, you know what? who needs this? i'm out of here. >> i don't know if -- >> you'll be nice about this. >> i don't know about ratings. >> oh, really? >> for him -- >> he's number one at this? >> i don't know. i don't know if he cared -- i don't know. i don't know the answer. set up for a long time. right? >> he's a child, basically. he's a kid. he's at the rising part of his

career. his work years. >> he could not be -- larry king might come back. >> the jobs number is out at 8:30 a.m. eastern. can we expect a sunny report? with us now is lou brien, strategist at drw trading. why are you so low? everybody has been moving the numbers higher and you're below 200, aren't you? >> yeah. i'm always lower than the average guests. now, the reason that i'm low and the reason i'm down to 150 is that i don't think the better weather has affected the last three months. i think the december and february data paled in x-rayson to the two februarys and decembers before. on a not seasonally adjusted basis, before we get the number that we look at, for the last two februarys, the increase in the payroll was a record since

february was invented. the two decembers were the best decembers since the turn of the century. but the example, i think, is the january because every month, every january, payrolls fall, not seasonally adjusted, 2.5 to 3 million. this year, payrolls fell by about 2.863 billion. which the 30,000 less yoon the year before. back in '08 and '09, there are mon thalg 3 million job losses. so there were lore 329 losses. that number, though, the not seasonally adjusted does not show that pale. we get to march and i think there will be a weather effect because a lot of them are

retiring who start to do the outdoor cafes and there's more street traffic and people get hired. march in chicago was the coldest in 54 years. around the country, there are 2,000 record low temperatures in march because of global warmings. you see how that works. >> so, in other words, so the colder weather in march, you know, with the hiring that is dependent, you know, a large portion of the hiring in march depends on the weather getting better so the people start to go back t into restaurants and cafes. but i think it will be about 30,000 less than the 12-month and 34-month average which are both at about 180,000. >> all right. five years usually, but this time it might be longer. >> it might be. and who knows. and it's kind of an interesting thing. >> the last three decades, okay, lou, thank you. being totally serious about

letterman. 18 to 49 is what people want. they didn't care about anything else. and letterman -- i think that says something about the next generation taking over. but this says something about the next generation. >> you know how funny i am, by the way. >> that's right. nos always on purpose. but the next generation taking over the is something that we will gradually start seeing. maybe it's gotten -- what it's going to be like. is it actually listening. >> they're on youtube, twitter. >> some people don't have tvs and still see them somehow, right? on their phone. so they're cord cutters. i don't like this new world, but i do like being able to play my phone in my car. >> i'm going to play river for

you. have you ever heard river? coming up, what makes the operations in crimea, that may make some people cry. plus, a few more stories in this morning's executive edge. "squawk box" returns right after this. this.

this is not easy. so you're going to think about -- oh, it's just a reader,

but we don't have a lot of time. topping today's executive edge, mcdoobl's has suspended work at its restaurants in crimea for manufacturing reasons. the second international company to cease operations this week on that peninsula that was annexed by russia. mcdonald anticipates operates three restaurants in crimea. but that's a big place to have only three restaurants. it said it hopes to resume woas soon as possible but offered to relocate staff signaling it did not expect its crimea business to reopen in the near future. so it may be a while. i think -- were you squared of that clown as a child? that's a bona fide -- that they have been named. i'm afraid of most -- it's just

the way he's smiling over your shoulder like that. >> what do you think he's looking at? >> i know what he's looking at. i've worked hard to get this and a lot of slots. a lot of slots. >> we've got another buzz story this morning. the ceo of mow zill la stepping down after a big controversy about a donation he made to opponents of gay marriage. brannon has stepped down this week from dating size okay cupid to boycott mow zill la's firefox browser. this the stems from a donation he made in 2008.zilla's firefox browser. this the stems from a donation he made in 2008. silicone valley wasn't willing to support that issue. so many people at mozilla either were supportive on the other side or frankly getting there thought it would be impossible

to have a leader who didn't believe in their marriage. >> and not just -- you know, i don't know. i don't give money to politicians or to causes, but actually taking it -- it's up to you. that's like 2 thoun bucks to make sure doesn't happen. >> but it's interesting that the board decided to -- >> you know who they might be replacing him with. >> who is that? >> you haven't thought about this? >> david letterman? >> no, angelo mozilmozilo. can you imagine if mozilo was running -- >> they make firefox. >> but what does that mean? it was this guy's last name who was in the financial crisis. >> why is mow sill low these days? >> i have no idea. when squawk returns, what the job redirections means for

the economy. the countdown continues. >> and how to invest like a hedge fund without all the risk? as we head to break, here is a look at yesterday's winners and losers. alright, that should just about do it. excuse me, what are you doing? uh, well we are fine tuning these small cells that improve coverage, capacity and quality of the network. it means you'll be able to post from the breakroom. great! did it hurt? when you fell from heaven? (awkward laugh) ...a little.. (laughs) im sorry, i have to go. at&t is building you a better network.

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good morning and welcome. becky is not here. michelle is here with us. welcome back. i'm joe kernen. andrew ross sorkin and i are here. becky is out. >> we needed a little -- >> yeah, we did. >> we need something to cut that with. >> in the headlines this morning -- actually, i've got a lot of hair. that means you don't have a lot. >> that is true. >> we're about two hours away from the march jobs report. economists are looking for an increase of 200,000 in nonfarm payroll. the unemployment rate is seen dropping to 6.6%. the fed said we don't care about numbers any more, but still, you get down to what used to be some type of significant number for employment. you get down and you start thinking, when do we finally see rarts start pinning up. shares of anadarko petroleum are

adding to yesterday's big gains in premarket trading. the justice department announced anadarko will pay almost $5.2 billion to settle its current issues. anadarko shares jumped over 14% after that deal. >> can i make one comment about that? >> yeah. >> i don't know if you saw earlier this week, he made the comment that companies should settle because look what happens. he says, look, every time if these companies can just put this stuff behind them, the stock goes up, the ceo gets a bonus. he made a reference to -- i'm just suggesting. and look how the market reacted to that settlement. by the way, they did some awful things. what they were doing, dumping stuff, was pretty egregious. >> but factories is almost worse

than what goes on at the insider trading. >> and we will make a mountain out of every insider trading, this and that, when it comes to add stuff. and we do the headline and we forget about it. >> you're talking about real things here. >> yes. >> the farm -- you know, not a couple of extra molecules of co2 in this case. this is poison that you're talking about. >> i'm saying because there's no billionaire is a head shot, people don't focus on it. >> but, you know, the people are and others in government know who how to play this game, though. >> that's true, too. >> and they don't necessarily want to go to court because they may not win because they never have to. they are able to do the shakedowns and get huge payoffs. >> 80 for 80 on the insider trading stuff. i know. and i saw people from '09, no one has been acquitted. but if you were going to sue

someone, you could -- think if anybody you sue would settle. i'd go on suing everyone. just settle, settle, settle. you would be raking it in just like these guys. >> viewers out there on squawk, there's a great piece in the "wall street journal" today in the op-ed section about his prosecution. let's talk about the jobs report. he is out in less than two hours. but where do the numbers come from? steve liesman explains. >> at 8:30 a.m. on the first friday of every month, the jobs report. in a nutshell, it's a checkup on the country's economic health. and the bureau of labor statistics or dls provides that check up based on two different surveys. first, there's the current population survey, commonly called the household survey because it tracks 60,000 households to determine whether people are working or looking for work in those households. that's where the unemployment rate comes from. then there's the current

employment statistics survey or establishment survey. that's a measure of mroip employers about 150,000 firms and government agencies. the establishment survey breaks out details like the number of people working in those industries and hourly wages. that's how the government measures the total number of jobs created in the month. in the broader markets, the impact of the jobs report is simple. consumer spending makes up about 70% of the country's gdp. so more people working means more people have a paycheck to spend, thus improving the nation's financial well being. maybe more importantly, the fed has said it will keep interest rates low as long as the unemployment rate stays high. the outlook for interest rates and the health of the overall economy. >> in a preview of what -- >> the phone ends. thank you, becky. >> becky and then you saying

it's my turn. am i the girl? >> i don't know. >> now to gordon harris, and then on the set michelle gerard. >> why are you laughing? it's friday. it's friday, it's funny. are you excited about the jobs report? >> so 200,000. it's a whisper number of 300,000. >> you get the gig and it works for me. >> i'm trying, i'm trying here. >> we're not far off. we're around 220. i do think at some point we probably have a little bit of weather catch up. i'm not sure that's going be the march story. it's probably more like the april story. again, people look back at what happened in '96. we had terrible growth here. 700,000 number. so you can see why the -- you know, there's this expectation that there's upside risk and perhaps we could be surprised.

>> what is the headline number at 6.6 realistic? does that matter? >> the employment rate at 6.6, we're at 6.7, but kind of on the cuff. people will be watching this the month at the early hourly earnings numbers. it jumpeder month than expected last month. it may have been because of the weather we people didn't necessarily hit their pay cuts. but the bottom line is, if that surprises on the upside, there's more talk about even at this unemployment rate as beagle excavated, maybe there's less because we're starting to see wages go up. >> maury, where do you stand on all this? >> i think we're going to have a strok number this morning. we think payrolls are up 250,000. you're probably going to see a drop in the unemployment rate from 6.7 to 6.6. and on those hourly earnings that you mentioned, we think they will be up another 0.2%. we are seeing signs that wages are picking up.

>> when do the we decide that this weather thing didn't matter? >> we have another month to go on the data. i guess you're really clean data won't be until may. well, these data are reported with a one-month lag. that means it may not be until early june that we get the first real clean reading. having said that, we can't wait that long. we can't wait until june to get may readings. i think we'll be looking at some of the indicators that were not worried about things in the first place, things like consumer confidence, things like unemployment claims and some of the surveys weren't as affected by the weather. that's what we will be looking at. >> yeah. a lot of these numbers, i think, in general people are willing to take with a grain of salt. most economists are looking through volatility once a month. i think yellen made the point that we are seeing softness in the first quarter. but even the fed doesn't necessarily think it's all

weather. let's face it, this economy has gone through periods of showing above trend growth and then we slow down. we had a very strong, you know, fourth quarter number. we are probably going to due for a bit of a pause -- not a pause, but a bit of a deceleration in the first quarter. it's been exaggerated by the weather where we keep getting flows for the various reasons. but the bottom line is, the trend you have an economy that's growing 2.5%. it's breaking to the upside. the situation is only gradually improving. >> joe, did you see our friend ben weis's report this morning? >> no, i didn't. >> he said the numbers matter to the democrats. if the democrats don't get a decent number this month, to the accident you think they're going to have a hard time in the senate to begin with, this is going the made it that much harder. but this is the turn or not for them. >> you saw that the other night when the 7 million was hit that the president asked to go on all the networks and have like a love fest. none of them said -- so they're

going to -- that was the sort of trump. but we'll see whether that really lasts once people are paying premiums and how many people already had insurance. but i totally expect something good to happen between now and november because it always seems to for the democrats. i think they'll somehow, you know, just the way things seem to convert. >> we had a big drop in the unemployment rate, so that's what -- >> and they're able to say look at what we did. >> in october. >> something good will happen. >> thank you and good-bye to maury. thank you. appreciate it. as we count down to the jobs number overall, also looking ahead to this weekend's final four, today we focus on the gators. you know, i'm not going to win because everybody has them, but i do have them, a heavily group of seniors looking to win it all. the university's president talks troops and higher learning in the next hour. the next hour.

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welcome back. u.s. equity futures at this hour continue to show some pretty decent gains this early in the morning. but, you know, everything can change at 8:30 when we get the employment report for march, which was weather effective, but not as bad as -- although the quarter a lot of weather. >> so people getting some snow spill somewhere. >> it was snowing a week ago. >> somewhere else it's going to snow a lot somewhere in the midwest. >> it is. here is the question. do you want to invest like a hedge fund? do you? >> do you? >> do you? there is now a way to get in on the ball game. do you know that? without all the risk, apparently. we'll find out about all of that when we return. >> announcer: next the week on

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"on the money," the snug gnew g economy. we talk to the ceo of fancy hands, my favorite company by the way. the latest trend on the street, all about bringing hedge funds to the masses. joining us now is henry davis, arde arden asset management president. henry, thank you for being here. the question, are all investors -- should all investors be investing in hedge funds? for so many years there was a million dollar cap. hedge funds are for a certain selection of people out there

and now it's being sort of democratized. i'm assuming you're going to say this is a good thing. are there certain investors that shouldn't be in this space? >> probably. it's more choice. more choice means there are more options and ways for investors to achieve their investment objectives. if your options are long only stocks and bonds you're somewhat limited. in most cases you'll be looking for a financial adviser to be making those recommendations for you. >> mr. bogle would say buy an index. that's going to be your best shot. in part, one of the arguments for indexes has always been fees. fees, fees, fees. my next question, in terms all the hedge funds that become available through your mutual fund, how does that work? what are the fees like? >> well, fees is an incredibly important part of the whole investment spectrum. if you're building a portfolio that has a low cost investment

product in them, such as indices and etfs, you may be able to spend more of your fee dollars from active management. active management is typically more expensive. >> what are the fees like. >> a typical fej fund could iyp to 2%. >> what funds do you have access to through the mutual fund? people look at a renaissance. they look at this amazing track record. it's a closed fund, right? who are we talking about? >> the recruitment part of this whole process is very important. just to frame it so we're clear, we're talking about a mutual fund consisting of multiple hedge fund managers executing hedge fund strategies inside mutual fund that any investor can invest in. in our program we were able to recruit managers like d.e. shah, york, jana partners, cqs,

chilton, names that are well known as hedge fund managers and have true hedge fund dna. this is a different animal than some of the liquid alts products that may have come before. >> how difficult is it to get some of these guys to open up to the masses and do we think trend line will go this way? do you think david tepper will open up to a mutual fund? >> no, i do not. >> you do not. >> i think the trend line is very clear. what the trend line is saying and what managers have recognized is that there's a very large and growing pool of self-directed retirement assets. the individual investor is on the rise. and these investors are very underserved now in terms of the investments that are available to them. >> you can listen to the best advice and say, okay, i need to diversi diversify. i can't be in this country. i'll have the things over there. those are all correlated, financial assets. to be able to have a noncorrelated asset class, i don't know how else you'd do it.

bonds and stocks move the same way. it would be nice to have something, if everything goes south, it would be into is to have something that was noncorrelated to that. this is the only way you can do it. >> you laid out the argument very nicely. >> noncorrelated. you're always long. >> if everyone -- >> you should have lunch. maybe there's an opportunity here. >> if every single person's retirement plan in this country is long and something happens, no one will be able to retire. >> you put your finger on something important, self-directed retirement assets, 401-k plans, iras have 34 years of cumulative save innings that system. during that time that coincides with a career, during that period when you have a 01 k plan, your object sieve one thing, it's growth. as soon as you hit the retirement mark your investment objective changes. you're not looking for growth. you're looking for capital preservative and replacement for income you no longer have. long only stock and bond

strategies may not be the best way to deliver capital preservation or yield-like returns. >> we have to run. are there 401(k) plans that have access to your funds? >> yes. >> they do. okay. thank you for being here this morning. appreciate it. >> get some noncorrelated assets. you're young but don't assume. >> i have to look through our 401(k) to figure out if we can do this. >> we have assembled a team of job avengers, it says here, ready to take on joblessness in america and the first avenger hit the silver screen in a sequel recently "captain america" kicking off the summer movie season. yes, summer in april. you knew that was coming from global warming. box office battle in the next hour of "squawk box."

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jobs in america. the big report, now just 90 minutes away. the preview, the predictions and the great debate are straight ahead. it's the unofficial start of the movie season. there may still be snow on the ground but the blockbusters are starting to bloom and boom. find out which studio is set up for box office success. and "squawk" in gator country. no, not that swamp, this one. the university of florida's president talks final four and the business of sports. you have courtside seats for this one. "squawk box" begins right now. good morning and welcome to "squawk box" on cnbc, i'm joe kernen along with andrew ross sorkin. becky is out today.

she was coughing, came back for one day and was coughing. you can just tell. >> we have to make sure she gets better. hope she gets the weekend to rest. >> plenty of liquids. >> plenty of liquids, starve a cold, feed a cold. i don't know. anyway, the future, remember? >> i just always feed. >> feed a cold. >> that's a good idea. >> up 4 points on the s&p. thesen have the changed much because we're waiting for the jobs number. i have to ask liesman if we really could do 300,000 someday. >> i have an explanation as to why we might be able to. >> your last number was so off, you submitted it to the ipcc your models were so ridiculous. >> i did. you haven't introduced me yet. people don't know i'm here. >> if people don't know you, our chief economist. >> the guys in the back. for once, do it properly. >> okay. let's look at the ten-year. the ten-year is 2.80.

investors are looking ahead to the march jobs -- how close. >> there it is. >> economists were looking for 200,000 new nonform joarm jobs. something at 6.5 is supposed to be important. it's 6.6. isn't it. >> no, not anymore. they got rid of it. >> the economy added 175,000 jobs in february. elsewhere, a top citigroup executive reversed his retirement plans. gene mcquade will head up another division. he had been the chief executive of the company's u.s. operating subsidiary of citibank. >> city now going to live in washington and lobby the fed? he has to change the capital issues at the firm. >> it would be nice to be at a company where you were retiring and they said, please, we can't -- there's no one else in the entire world that can do

what you do, please come back. like a.g.laffley or something. >> you're not going anywhere. >> grub hub, online food delivery service goes public today. >> also known as seamless to the new york crowd. >> have you done it? >> i don't know what it is. >> it's food. initial public offering above the expected range. it was priced at $26 a share compared to the expected range of 23 to 25. it values grub hub at more than $2 billion, andrew. >>y he, $2 billion. >> it will change on the new york stock exchange. >> it's a messenger service for food. >> it will trade under the symbol grub, as andrew would tell you, g-r-u-b. >> in new york its on bikes. in other cities it's by car. >> they do the delivery also. >> right. they do the infrastructure to

the restaurant. you put the order in on your phone, they pick it up, bring it to you, they take a piece. it's the uber of food is what it is. google, nest labs, they've halted the home alarm system sales over a possible defect. the maker of smart thermostats that google acquired for $2.3 billion. i wonder if that nest voice actually would go on and say it's broken. >> they do carbon monoxide, too? >> i don't know. >> they have them together and they're much smaller now. >> the nest ones? >> i don't know. the last ones at home depot they were trying to sell you a much smaller one that has the carbon monoxide and smoke altogether. >> we're starting to amp it up.

>> read the rest of it. >> senior economics reporter, he's now joining us to help us -- >> who? >> steve liesman. >> to hype the transcendent important of the number. >> the bet is whether we make up for lost ground and we have extra job growth this month. here's what it looks like. in november, the three-month average for job growth was 225,000. that fell, the three-month average to 12 in february. i guess we don't have that full screen. it would be nice. goes down like this. the question is does it come back up? the whisper number, some of which are as high as 300,000 is based on the idea of getting jobs back. you see that december, january thing right there? so 175 is not enough. 200 is not enough. if you were getting back the lost ground you have 300,000. here are the numbers that joe just read. 200 k is the consensus unemployment rate. 6.6. if it goes to 6.5, it doesn't

matter anymore, joe. the fed is done. watch be the average hourly wages, 0.2%. i want to watch hours worked. you can increase or decrease the supply of labor by increasing or decreasing the hours worked. we had seven reports this week, all better, a bounce-back from march. ism, manufacturing services, adp, nfib jobs report, the pnc small business survey. we had vehicle sales and jobless claims. that's the kind of number, that's the chart you want to find if you ended up making up for lost time. that's where the 300 comes from. my model which is terrible, it's still in the works, it looks good when you put it up. on a monday-tmonth-to-month bas

50,000, plus or minus 50,000. i tweak it every month. it's calling for 180 this month. >> why are you so much lower? >> it has no way, the model itself cannot make up for lost ground. i'm trying not to use the prior data. i can use the prior data but i end up lagging. >> was that last month you were way low? >> last month it was way low. 180 or something like that? it was terrible. it's the model i use when the government shuts down. >> you stayed. i would have snuck off. 180. >> 180. it's plus or minus 50 is what it is. >> what did we decide, a regression or revision to the mean? is there a difference? >> i think it's reversion. >> that's what you're talking about. >> that's why the series one, two, three can go one, two, three, one.

>> we were up at 200 or so, 229. >> 250, 300. which is where maury was or drew matusz was this morning. >> that's -- it was so close, things close up, i can't see anymore. steve, stick around. steve, stick around. >> that's what it says on the prom prompter. >> system around. joining us now is kevin hassett, he's with the american enterprise institute. if we do get 300 and even if it's just reversion or regression to the mean, kevin, you are going to hear some serious back patting. first 7 million in obamacare, now 300,000 jobs. >> right. >> they're going to -- that would be a good number, would it not? people don't explain how it happens. >> yes, sure. if i take the good news this week and put it into my gdp

model, steve, i'm getting gdp growth is looking north of 3% for the quarter. >> if that's really where we're headed, you have to make assumptions about the last month and so on. a number of 250, 300 could be a regular order here, pattern that we see for the next few months. i think you're likely to see upside surprise today. maybe a big one. you're right. i think that that might in the end have political repercussions. if we finally get something look a recovery going into the fall elections, for sure the democrats will start to crow about that. >> let's be careful here. you don't want to take the new higher level. it makes perfect sense, right? you were beginning to hire a few people, you have snowstorms, lousy weather. you still think the demand is out there. you hold off a few weeks and bring them on later. you have extra hiring. that doesn't mean that the economy is running or burning at a 250, 300,000 level. it means we're getting a snap back. >> if you look at the vehicle

sales and the other signs we're seeing you might be getting the inflection we were talking about, being right around the corner for the last year or so. and 250 could be the right number going forward for the rest of the year. we were almost there in the fall. then we had that stuff fall off at the end of the year. you saw janet yellen saying, geez, the fed got ahead of itself. we thought the data was better than it turned out to be. >> i think the false start might be a real start now and today is the first day we'll see that. i'd be shocked if we came in below 200 today. >> kevin, you brought up politics. i was talking about ben white earlier. he writes the following. i want to understand why this month is the month that matter. he says democrats fervently hoping for a big number. if weather has to do with this month, and we get a better number next month, does it actually matter? >> no.

this month right now isn't so relevant. we could have a 400,000 job number and if it's the pits in the summer, that's what's going to affect the election. what matters is what kind of economy do people feel like they're experiencing in the summer before the election? that's the kind of metric studies have found. the bottom line is looking at all the data, not just the jobs data but the stuff steve mentioned that we saw this week and other things, it looks like we finally got a slightly, more sharply upward tilting trajectory than we expected. it looks more like the first part of the fall, not the second part of the fall. >> jared, you're in tucson? >> i think so. >> what would bring you to arizona? >> well, i tray to get around, spread the message, spread my message of light and optimism. you know, the kind of things we like to talk about. >> i don't know how much you just heard but i have in my -- i

just figure it's going to happen. things will get better and better leading into november. it just seems like that's what happens with this president, i think. and anyone that thinks that the senate is gone, you know, have a rude awakening. >> i heard something about a number with a three handle. something about that. somebody said something about 300,000. where is that coming from? >> above three on the gdp. >> oh, on the gdp. well, look, i think -- i heard your conversation and i'm less bullish. i'm not sure -- >> then there's you who lowers expectations so it always looks good. you're the true master of spin. >> yes. well, i mean, look, let's face it. the job mark set not exactly been an expectations buster in recent months. i mean, it's interesting. we talk about a number when the adt came out at 191,000,

everyone said what a great number that is. and i agree, that's a good number. but we actually could use some threes and 350s historically coming out of a deep recession, it's not that unusual to have those kinds of big numbers. we've never had them. my interpretation of the broader path of the economy has been, instead of the "v," the big bounce back you'd expect from a deep recession, it's been more like an "l" or backward leaning "l" with a gradual incline. you can definitely find numbers that look more upbeat in the economy but based on gdp, for example, hard for me to see why we'd be breaking 300,000 very much. >> we're going to lose time hear for a second. you ran a conference this week, kevin was there on creating jobs. give us the 30-second summary of three good ideas to are creating jobs in the country today. >> sure.

probably the most important was to really implement some pretty strong fiscal policy to offset the output gaps that still remain. larry summers hit extremely hard on that. a guy named kevin hassett had a good idea of using a work sharing program so you spread the jobs around more. and then lowering the trade deficit. that was another really important idea. >> that was dean baker's idea. >> exactly. >> he thinks sending all these jobs overseas is not good for job growth in america. >> we all want to do it. we just have different ways of how we want to do it. might help to change the tax laws so people could keep them here, that might be one thing to think of. >> there was someone on the manuel, and it wasn't kevin, that suggested a lower corporate tax rate. >> what a concept. if corporations do better here, they might hire. >> by the way, dean's thing is

to allow the exchange rate to be set in markets. that sounds like something everybody here ought to be happy with. i know i am. stop managing your exchange rate to get an export advantage over us. >> let's have him back. >> the whole renaissance, too, j jared. so many things we agree on. >> the problem is, if demand is weak for too long, it starts to hurt the supply side of the economy. >> and vice versa. >> that was larry summers. >> kevin, call him and talk to him more. you're making progress. >> he's getting in the right direction, yes. coming up, where the jobs are. you don't have to look any further than the energy sector. tom fanning, ceo of southern company will tell us about the entire boom across the entire industry. first, the summer season is

here. the opening of the new "captain america" sequel. which studio is in position for the best box office success? we have that story coming up. there's a saying around here, you stand behind what you say. around here you don't make excuses. you make commitments. and when you can't live up to them, you own up, and make it right. some people think the kind of accountability that thrives on so many streets in this country has gone missing in the places where it's needed most. but i know you'll still find it

when you know where to look.

welcome back. a shot of the capitol right there. the newest "captain america"

movie premieres tonight. there are a slew of other summer blockbusters slated to come out in the coming weeks. with us now to discuss, brett harris, research analyst at gabelli and company. who's the winner? you have to bet on which movies will work and which ones aren't before they have a shot of knowing, before you've seen them? >> right. >> so? >> this summer first off, big summer for marvel. there are four separate marvel-based movies. captain america, disney is releasing guardians of the galaxy, new marvel characters that we haven't seen on the big screen and sony is releasing "spider-man" and fox has the x-men, days of future past coming out. >> the other question i have, all of these movies are 200 million plus? >> 150 to 200. that's the table stakes for blockbuster. >> handicap it. one, two, three, if you had to

make a bet. >> probably transformers. transformers 4 coming out, michael bay, transformers typically do very, very well overseas and international markets for movies have been increasingly important. i would pick transformers as my pick. >> from a stock perspective? >> i would choose fox and viacom are my two -- probably two top picks in media. >> there was a big story in "new york times" over the weekend about warner and what they're doing. where's time warner? they're dong a lot of movies this summer. >> absolutely. that being said, none of them are big franchise movies. which typically if you make the first movie in a series, typically more risk associated with those. if you have a captain america coming out -- >> is there a chance one of them is the next "despicable me" and we just don't know it? >> that's the purpose. >> for frozen? >> the disney movie which was fantastic for that studio. >> this new guy, i was amazed at

the accolades that it gave him in that piece. is he the real deal? >> he seems to be delivering. so pixar -- >> has he had a huge hit yet. >> "frozen." >> is that his at warner. >> we were talking about the warner piece. >> sorry. the warner piece. to be determined. for the studio warner they've had a couple key franchises, harry potter, dark knight, man of steel did okay and hopefully that reboots the d.c. franchise in a similar way. what they want to make, they want to make difference c. a similar model. >> he talked what's her face into extending that franchise or doing something else, rallying. >> i think there's another harry potter movie in the works. >> can we talk about windowing. >> sure. >> we're a "frozen" family. we saw it in the theater. all of a sudden -- >> i haven't seen it yet. people loved it. >> we're home with our i-tv or

apple tv. >> show off. >> the typical window is four months. there are exceptions, based on negotiations between the theaters and the studio. the theaters do their best to maintain that four-month theatrical window. after that it's up to the studios. >> will frozen make more money in the theater now that they're over a billion dollars? >> right. >> or will they make more money eventually. >> rule of thumb, a third of profits come from theatrical, a third from television. cnbc's own captain america, when free markets are in danger, he's there. and we could be talking about

nobody else. is that really him? i thought he was standing back there. that is his pose. we're talking about larry kudlow, avenger of socialism. it says avenger of capitalism. he's a pro capitalist legend. he'll join the team for the jobs report. that is at 8:00 a.m. eastern time. an adult in the emergency room. yet all they really want to do is grow up. it's funny, everyone i know wishes they could go back and feel younger. sound familiar? then test drive one of these. current non-gm owners and lessees use your $1,500 allowance to lease the 2014 cadillac ats for around $359 a month with nothing due at signing. so ally bank really has no hthat's right, no hidden fees.s? it's just that i'm worried about, you know, "hidden things." ok, why's that? well uhhh...

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coming up -- i hear this so much. where the jobs are, mary thompson will tell us about one company doing its part to fill the skilled labor gap. we're about an hour now, hour and four minutes away from the big jobs report and a day away from the final four. march madness. even though it's april, starting back up. the president of the university of florida joins us to talk hoops and higher learning. more "squawk," coming up next. yeah, i'm married. does it matter?

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welcome back to "squawk box" this morning. while we wait for that march jobs report which is due at 8:30 eastern time, let's take a look at stocks to watch, on the move in this morning's trading. a lot could change, of course, however. auto retailer carmax reported quarterly profit of 52 cents a chair. carmax did resolve ongoing accounting issues during the quarter. take a look at shares of -- please take a look, i should say. they're on the rise this morning as well. the maker of the invisalign orthodontic system, clear correct violated five of its patents. i should admit something here. >> is it like braces? >> i had a retainer. i had braces as a kid.

then i had a retainer which of course you only use for like six months after because they tell you to wear it but you don't. as an adult, i decided i would have invisalign. >> we have a retainer issue. if you pay all that money for braces and it goes back, it's important to be diligent. >> you have to wear the retai r retainer. >> miylan labs, the financial times reporting that they may buy meta, a combination that would create a $23 billion company, not for nothing. mylan did confirm it has had contact with meda but wouldn't reelaborate. two pieces of news on that company. that stock up about 10% in the premarket. >> on this jobs friday we continue our series where the jobs are looking at how

manufacturers are filling the skilled labor gap. today we go to houston where the maker and servicer of drilling equipment national oil well varco is investing tens of millions of dollars to train the workers that it needs. mary thompson joins us now with more. i think you can almost feel it in texas, can't you? you feel a lower unemployment rate, don't you, mary? >> yes, yes, without a doubt. they have a lower unemployment rate. i am sitting in what's called a driller's chair. this is part of a simulator at national oil well varco or the technical college here in houston. here they get hands-on experience. why do they need to know how to operate that? they will repair, install and maintain the multimillion dollar drilling systems that nov produces. what i'm going to be doing is releasing the brake on what's known as a top drive. it's that red thing there.

and what you can do from here as soon as i release the brake, sorry, guys, release the brake and then the top drive can be lowered to right above the well head. now, attached to the truck drive will be a drilling string, which is attached to a drilling bit which in turn will drill the hole. what happens is the technicians in training can take these classes in the simulator along with a number of others at nov, six technical colleges around the world. there are two more coming online. why bring the training in house? years ago, n 0. v knew it was on the verge of an energy boom but couldn't find the workers familiar with the technology on the rigs they decided to bring the training in-house. >> there are big changes going on in the energy business. it's very different than when i joined the industry back in the 1980s. it's a lot more technically

sophisticated. we're seeing the industry move into deep water provinces, new shale provinces. it requires a much higher level of technology and drilling equipment. >> nov spends $50 million a year, training about 450 service technicians and mechanics, hydraulics, electronics and software systems. after a 6, 9 or 12-month program, they're paired with a more experienced worker. a global company nov employees about 64,000 people and typically has 1800 jobs open at any one time in the u.s. williams says the shortage of skilled workers has crimped the company's growth at times. to make sure it doesn't lose trainees, nov makes them sign a three-year deal. >> it can be hard to keep them. one of the things we do, we ask each of the new employees to enter into an agreement with us. we find that we -- once they're trained we have about $70,000 on

average invested in their education. >> now, if the trainee leaves before that three years they have to repay nov for what the company invested in their education. if they stay, they make $06,000 in the classroom and can make up to six figures or more -- up to six figures once they are deployed on the rigs to repair and install that equipment. back to you. >> i like that chair. just in the theater room or something. it looks comfortable. yes? but it does look like -- >> i'm having trouble hearing you, joe. i seem to have lost you. i think you're asking me if i'm comfortable in this chair? >> basically you always have trouble hearing me because you don't want to listen to stuff i say. you always say that. >> i'm very comfortable in this chair and i don't have a problem listening. maybe i have a problem listening to you. >> that's what i'm saying. i'd like to take a dentist's drill while you're in that chair. it kind of looks like that, too,

doesn't it? thank you, mary thompson. we'll talk basketball a little bit later but not right now. she's notre dame. >> i know she is. >> great lady's team. joining us now is tom fanning, southern company's chairman, president and ceo. you wear a lot of hats now, too, tom. talk to us about fed matters and all that stuff. but we had a discussion a little bit earlier, we all want jobs. it's jobs friday. and you know, you talk energy. my fantasy is that we lower input costs enough to where we can manufacture here again and it narrows the labor gap which is something you can't ignore if you're a multinational. if we can make it better, we can bring a lot of them back. >> that's huge. i've been talking a lot with this national energy security plan. energy security breeds, economic

security. i think we can grow jobs, grow personal incomes, make american lives better. >> which is something we've been looking for a way in this century to bring back something other than service jobs and to make something again. and no one knew how it was going to work. andrew worries about it. technology is replacing a lot of jobs. it fell in our lap. geopolitically you have an entire continent which putins had a stranglehold on. think if we were ready to start supplying some of the stuff there. what you said about security, our national security could be enhanced in addition to having more jobs. >> interestingly, we're deploying a technology, southern company is the only industry that does proprietary search and development. we'll remove 65% of the co2 in coal and we use it in enhanced oil recovery. we produce 2 million barrels of

oil out of a coal plant and produce electricity. i'm actually going over to china this weekend to talk to them about, they have gas prices at $15 per million btu. poland, for example, has $12. and they're at the end of gozprom. maybe that technology has great application in those two markets. >> should we still be lobbying washington or the obama administration for anything? we have done this. it's been the obama administration for the past five years and all it has happened anyway. does it matter what washington does? this is going to -- private industry is going to do what it has to do either way. should we still hope for progress from government? >> oh, i think you've got to work all the angles here. you know, you mentioned before tax reform is a huge deal. >> not going to happen, though. >> we need fiscal policy put into place. >> minimum wage. go ahead. >> that actually is not helpful.

i've been listening to the show, you've been talking about unemployment. i think that's actually really important but it's overwrought. i would focus on where you're creating value in terms of wages and personal incomes. let me give you a quick breakdown. 6.5% unemployment, people who left the job market, 12.5% now. underemployment is about 3.5%. you have 16% of the population that is impacted by this challenged economy. one of interesting things we saw, leading indicator for us would be industrial sales. fourth quarter it was up 4.8%. that's a big number. so far this year, immature statistic yet but about 3%, that fits with what you have been talking about gdp. most of the jobs are not in manufacturing. they're in services. and if you look at wages and incomes, flat. so you're in the going to get the economic pickup, even if you see jobs. peel the onion on that and see what the jobs are producing.

one of the great things the energy space can do, southern company, we've talked about all the arrows in the quiver, all the above, investing in every part of the energy infrastructure, we're the only company doing it. $20 billion committed to it. indirect and direct, about a quarter million jobs. we're building plant vogel. 5,000 jobs on site, 25,000 indirect. we're building this plant i mentioned in mississippi. 5,000 people on site there. 500 mississippi companies putting their resources to play. so look, these are the ways you really start the economy. and if we sustain clean, safe, reliable, affordable electricity, you restart manufacturing on a sustainable basis. >> we should be creating high-paying be jos. that's what we should be thinking about. we shouldn't be thinking about ways to take the low-paying jobs and make them pay a dollar or

two more an hour. by the way, it is possible to work your way up from even those jobs. i'm not disparaging all those jobs. >> that's right. >> you have to start somewhere. the thing government should be thinking about is creating high-paying jobs. >> joe, you got it. peel the onion. >> we have an election coming up. this is a wedge issue, a way to maybe save a couple of seats. >> you have to have a job first. look, we have to get the high-paying jobs into play. i swear to you, if our lifetime and parents' lifetime, energy is poised to do more there than at any time in recent history. >> it came out of nowhere, didn't it? we thought it would be renewable or solar or something. it was in front of our face. >> hey, joe, one more thing. it's important, i think, for americans today to think about a way to play offense in otherwise this challenged environment we hear about. a little slow growth economy,

high unemployment. this is a way to play offense. i think people are thirsting for that. >> i agree. thank you. coming up, a lot of buzz about high frequency trading, we talked about it and how it can give some market players a bit of a leg up, up next, we talk more about the mechanics of how all this works, high-speed advantage, within we return. 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.

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welcome back to "squawk box" this friday morning. the store riff the week has been high frequency trading. we've heard debate around this table and elsewhere over exactly how traders are using it to get a leg up in the markets. dominic chu johns us now. he's been looking at the mechanics of it. he has a breakdown. >> it's complicated first, andrew. here's the best we got for you, all right? in "flash boys" he and brad katsyama, iex, here's an example he presented in the book. brad hypothetically is in new york somewhere and places of block want to buy 10,000 shares

of a stock. it can be entirely filled in the market at the current price. he sends that order out. that trade travels across the information superhighway and head for exchange centers somewhere across in new jersey in our example here. that order would be filled at least partially at this center right here. a portion, just a portion at that closest venue, buying perhaps say 1,000 shares available at this one center and then there's more to be had. we've stopped the action here because what happens at this exchange is critical. here's where the hfts come into play. their superfast computers and trading strucks or algorithms would see the thousand shares and get bought and they would speculate, literally that the order executed at this exchange is probably part of a much larger order that hasn't really hit other markets just yet. so in just milliseconds, again,

using their superfast computers and pipelines these high frequency traders send their own trade. they start the action here again. the hft pipeline is red. it's so much faster it beats the original trade to the next exchange where the buy shares should then get executed only to turn around and sell it at a slightly higher price in, again, milliseconds. the question is, is the evidence -- at least with this example here, is there evidence that the market is rigged or is it just a legal form of being faster than somebody else and perhaps front running? it's important to note, we spoke with brad catsyama's team about this specific example and not even they believe, this is important, that high frequency traders know for sure what's coming down the pike. they know your ordered to front run. they admit hfts are making a bet, a high-speed, highly educated, calculated bet.

so does this mean the market is rigged? i guess you need to decide that for yourselves. this is one of the examples of how high frequency trading works. >> i have to throw one other thing at you, though. help me with this. my understanding is that e-trade, putnam, some of the others are selling their data, selling the data i would think belongs, frankly, to whoever is the customer trading. they're selling that trading data to these high frequency -- what is the responsibility that they have in all of this? >> here's the thing. if you talk about the way the system works, the market system as it's set up right now allows for people to exchange information or to pay for data. that's perhaps a different example or a different subtle nuance of this argument. a lot of firms, remember, exchanges actually pay participants to add certain parts of the liquidity to the market. if you add your own bid or offer, you get a bit of a rebate, fractions of a penny. also some of these brokers say a

schwab, td ameritrade or e-trade financial, they use this type of system. in a world where data has value, they want to use that particular information as a revenue point, a revenue source. >> right. i don't want them selling my data. don't they have a fiduciary duty to me. >> fiduciary duty is one thing. they're not front running or allowing somebody else to front run you. what they're doing in essence, the data is out there publicly already. the question is whether or not some people have access to that data faster than others. you know what it's like? it's like in the 30s and 40s when you saw a courtroom and a bunch of reporters rushing for a phone bank, right? the fastest guys to the phone banks got the phones and were able to get the scoop and call it in first. >> right. >> that's kind of what it's like right now. >> it's never been cheaper or faster. you can get a trade filled right where -- you can get it filled

instantaneously as an investor. if you're right about the stock you're buying and if the fed continues to rig the market you'll make money. that's rigging, dominick, isn't it? if you're going to find a rig -- >> i have no comment on the fed and rigging the markets. >> you would say they rig interest rates, at least they set them. >> they certainly do set interest rates. >> he's a reporter. we haven't brought him into the "squawk" commentary fold yet. coming up, florida is the favorite heading into this weekend's ncaa final four match shups. the gators take on uconn and shahbaz tomorrow night at 6:09. they beat them once. i don't know about this time, though. up next, we talk to the university of florida president about athletics and academics as we continue our higher learning series. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities.

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sure. can i watch it in glimmering lake? yep. here, too. what about the dark castle? you call that defense?! come on! [ female announcer ] watch live tv anywhere. the x1 entertainment operating system, only from xfinity. top overall seed, the university of florida is heading to the final four. can the team continue it's 0-game winning streak? the longest in the country. joining us now is bernie machen, the president of the university of florida. these haven't been cream puff teams. i was just wondering, doctor, who was the team 31 games ago.

i can't recall. >> i can't either. >> it really was connecticut, was it not? >> yes, it was. >> knowing it's the same team and shahbaz is hotter than ever, it's going to be awesome. patrick young, my idle. is he 7 feet tall. >> 6'9". >> but he's like -- he just looks like adonis. our bodies are not like that, sir. >> patrick is an amazing person inside and out. >> i hear he's the most popular guy on campus, too. >> i'm hit with, i don't know what it is, a nostalgia or sadness. there's this idyllic notion of college sports that it's done for the love of the game. when you look at it, i can't help but think the nlrb has a scintilla of relevant and truth here. if they're working 50 hours a

week. >> i have my own opinions. we want to maintain the student athlete component of college athletics. and conferences like the s.e.c. have been pushing for years to provide better benefits to our student athletes. we've been blocked by the ncaa's voting process, but we're in the middle of a negotiation to try to change that. some of the things the nlrb has called to task are the very same things that we're trying to rectify. >> it's just that people that say it's all money, think of the good things that happen at the university of florida when you have a great team. think about the scholarships you're able to offer to other kids that might not be athletes. >> right sfl while i can see you can make it tawdry or whatever and say it's all about money -- >> that's when it works. it doesn't always work. >> that's when it works for the school and people want to become a gator.

>> division i, what do they say, 20 or 25 of the schools make money. everyone else is subsidizing the program. >> how about that, doctor? >> that's true. we happen to be one of those that makes money. but i think that's just the reality of it. we would like to better reward our athletes. we would like to give them a lifetime scholarship. we'd like to give them extended health benefits, we'd like to put incentives up there that would maybe encourage more of the ones who leave early to come back and get a degree. all of those things could be done within the system if we were allowed flexibility. >> well, we have to be prudent. with smart people, for me, i realize it's selfish, because i love march because of it. but i don't envy what kind of decisions need to be made. good luck. >> yes. >> i've got you winning everything, because i didn't take the number one seed the last two years and it killed me. i have the gators.

we'll be watching. thank you. >> thank you. >> see you later. >> i think if an athlete wants to sign a jersey and get paid, i'm cool with that. >> is that all? >> i'd go farther than that, actually. coming up, will the march jobs number show a spring thaw in the labor market? we've assembled a league of employment experts, led by "captain america" larry kudlow. back in just a moment with the big jobs number. friday night, buddy.

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it's been a long winter for the employment market. >> i'm afraid. >> is the hiring freeze starting to thaw? it's jobs friday. we have a special guest to take on the villainy of unemployment, captain america himself. >> how do you know the good guys from the bad guys? >> if they're shooting at you, they're bad. >> larry kudlow is here. >> not the hero. >> he'll join the league of employment experts for predictions, reactions and market analysis. it's time for truth, justice and

the american payroll report. "squawk box" begins right now. welcome back to "squawk box." i don't know, here on cnbc, first in business worldwide. people get -- seem to animated. i'm joe kernen. what's the worst that's going to happen? we've never lost anyone. no one's ever died on september up to this point. i'm here with andrew ross sorkin. becky quick is out sick today. it's not the emergency room. it's not like, the right kidney? we are just half an hour from the march employment report. you're looking at a live shot of the official labor department clock. forecasters are looking for a thaw in the labor market. some numbers are as high as 300,000. the average is 200,000. there might be some, you know,

some catch up from the weather and stuff like that, the unemployment rate is expected to tick down a tenth, 6.6% and the average hourly earnings are expected to rise by 0.2%. we'll get predictions from our league of employment experts. we'll try anything, including cnbc's own captain america, larry legend kudlow. first he is here. larry, you're back in the game now in real time. this is an uptick, i think, to be here before the number instead of like commenting on it at 7:00. aren't you feeling like -- >> you are correct. i just want to say anytime i come on "squawk box" it is a great pleasure. this is really where i began 15 or 20 years ago. >> like you're coming off the bench back into like the final four, the starting lineup or something. now it's on your shoulders to try and help us now. >> i will do the best i can. as i said, grateful to be here.

>> i knew you were coming on friday since last week. >> we talked about you a lot. >> once upon a time i thanked penelope for launching my career. she she was a producer, became joe's bride. she said i can't possibly take responsibility for that. >> don't lay that on me. >> that was great. she's a great lady. >> we'll do this a lot now. >> thank you. i hope so. thank you very much. let's get you through some of the morning headlines this morning. we have a couple ahead of today's jobs report. take a look at u.s. equity futures. the numbers may not matter. things could turn all sorts of different directions in just a half hour. dow jones looks like it would open up 33 points higher, the s&p up 5 points and the nasdaq up 12 points. richard fisher speaking in hong kong overnight. he said the central bank must avoid being locked into calendar

based policy commitments. he said forward guidance should be flexible enough to allow for changing conditions. he's currently a voting member of the federal open market committee. we talked about his comments. >> he's the sexiest guy on -- isn't he? he's a handsome guy. >> he is. his son? it's like him and tom cruise got separated at birth. >> is he back yet? >> i think he's doing hong kong. >> if we had a moderate, if we had a moderate administration, either democrat or republican, moderate, dick fisher -- richard fisher would be a treasury secretary candidate in my opinion. >> that's probably right. >> he ran for the senate once in texas. >> he once ran as a democrat. he's a texas democrat. i don't know what that is. >> pro-business. >> we have a big day for ipos, online food ordering service grub hub priced its shares at

$26 higher than expect. originally it was $23 to $25 range which had been raised again from $20 to 22 on tuesday. i am a user of grub hub. also known as seamless in the new york area. grub hub's valuation over $2 billion. i don't get it. the new york stock exchange is where this thing is going down. the ticker, grub, g-r-u-b, the ceo of the company will be on "squawk on the street" later this morning. prescription data provider imf health holdings begins trading on the nyse under the ticker ims. opower is going to trade on the nasdaq. they share this software to show customers how much energy they're using. >> you advertise for a swedish opower in your house? >> au pair. >> this is opower.

>> au pair. i did not advertise for a swedish au pair. >> that was a lie. >> that would not be allowed in my house. you know who the boss is, which is not me. >> we're less than 30 minutes away from the march jobs report. our league of employment experts is here to tell us what to expect. joining us now, austan goolsbee, former chairman of president obama's council of economic advisers. he's now a professor of economics at the university of chicago's booth school of business and a strategic partner at 32 advisers. i saw your buddy yesterday, wolf, who actually owes me lunch. he had michigan state. >> he owes me money, too. >> what's that? >> he owes me money, too. >> does he really? i had florida. he said whoever goes brother. >> and richard bernstein, ceo of richard bernstein advisers. michelle meyer, merrill lynch

senior economist. and larry kudlow, cnbc's captain america. that should stick. >> marvel pays him a royalty tore that. >> i heard hassett put a three handle on it. i'm not there, not by a long shot. >> where are you. >> i'm at the 200 zone. i don't know if i have huge insight into this number. i'm just sticking to the 190 to 200,000 consensus. i don't know, richard, the weather, i get that, maybe it's going to come back. the thing that's troubled me, maybe we'll get around to talking about it later in the show, i don't see cyclical upturn in business fixed investment or cap ex or core capex. this troubles me. it's a key component not only of

gdp growth but of job creation. they're not making that long-term investment in factories and warehouses and office buildings and what not. it's something that alan greenspan has talked to me -- i interviewed him a couple times the last few months. he's raised this point. it's not a full-fledged recovery unless you have the business sector involved. so far i don't see it. i wish i saw it but i don't see it. >> you do, don't you? you think companies are doing great. >> i'll still bullish. i don't try to forecast the number. i do this like i bet football, the over/unders. that's me. the over/unders are roughly 200. i think it will be over. there's probably something to the weather. who knows how big the weather impact is. i don't know. i think it will be over. i think larry raises a good point, though. in the early cycle you don't see business fixed investment. you have to use up the capacity that is left over from the previous cycle. i personally think we're at the

point where we'll start to see that, start to see business investment pick up. larry is right. so far that hasn't been the strength of the economy. >> don't you think, that's a big job creator. everybody talks about demand and consumption. i know that's important. but when those businesses launch a five to seven-year project they'll hire a lot of people for a long time. i just think that's been missing from this recovery. >> i think that speaks to the fact that confidence has been pretty subdued through this whole recovery. so businesses, they're not confident that demand tomorrow will still be strong. why are they looking to invest in a meaningful way? i think we're starting to see confidence improve. some of the head winds are muted right now. i think we should start to see stronger job growth. we've become increasingly confident that we'll be in an environment above 200,000 payroll growth the rest of the year. at least that's our hope.

>> can i flip it on you. >> ben white read a piece about how important this month is to republicans and how important it is to the democrats who are behind the eight ball at this point. and if this number is bad, what that ultimately means once you get into the summer for the elections. >> if it's a bad number, yes, it will hurt the incumbents. at least in the polls republicans are surging. it's early yet. >> is it too early? >> i think it is too early. >> you see the movie. see what happened the last election? >> he's right. >> the horseshoe is in his pocket. >> the gop should have taken the senate in 2010 and 2012. they didn't. >> they should have taken the white house in the last elect n election. >> okay. but they didn't. in terms of what ben is saying, i think right now the democratic party is trying to rally around the president and the early numbers on obamacare.

>> right. >> if you want to stop the bleeding, that's where you have to stop. on the other hand, lousy jobs number will hurt them and gives the gop more ammo, no question. >> have you seen larry kudlow push back to someone of the right of him? you wouldn't have said that. and then i said it. >> when i said the republicans should have won the last election. given the economic background, i think the same thing could happen again. something will happen in 2014. >> you're convinced the numbers are manipulated. >> no, i'm not. that's not what i'm saying. if you add in people that would like to work and the participation rate, it's not a great environment except for companies. >> that's why janet yellen has gotten off the number. she knows the number is not real. >> there's a lot of things that could have been done in the last few years, and a lot of things that should have been done. >> take away the economic story for a moment. i care that things have to get

better. there's an interesting discussion about whether the km economy is strong in an absolute sense. >> i forgot about austan. i'm sorry. there's an advantage to coming into the studio. we can hang out and we don't forget you're hanging out there. do you have a top ten list? you've been good and not always pollyannaish. >> i think the economy has improved. biff been on the lower end, the lower 80s or low 190s because i think we're going to find out from this number, it actually turns out to be quite important was the weather a real thing or was it not? if this is a lousy number, we'll have had three months in a row

of lousy numbers. i don't think you can ignore it. then it's a trend. >> do you have a smartphone with you? >> yes, why? >> because wolf just tweeted. he put you on it. you owe him. he says you're full of -- i can't say that. >> that's totally bogus. he's the worst sports better in history. i can't tell you how many games he owes me for. >> he loses to golf with obama. how bad can you be? all right. what's your number? >> over 200. >> your phone number. >> my phone number? >> no, no. >> hey, austan -- michelle? >> 230. a little bit above consensus. >> don't you think joe kernen is right, gop should have swept in 2012? >> oh, great. >> i loved watching all those gop when i was in the white house watching them, i'm not a witch and all of that, the dks should be rooting for some of that this time. >> candidate selection, very important. >> it is.

the democrats are coming from a tougher spot to who they have turning out. it's liking like a tough year for the democrats. >> it's after two years of policy. of course they have a hard time. >> it's not the policies. that's not what it is. >> anyway, thank you. thanks. i say it. i'm kidding, larry. i'm laughing. anyway, still ahead -- >> austin golden has been realistic about the economy. i give him credit. >> when he thinks no one is listening he says things that are true. canada, remember? >> smart guy and a good head economist. >> and handsome. >> we're counting up to 8:30 eastern and the march employment report. our panel will be back with final predictions. first, though, the housing recovery, rising home prices and interest rates pushing potential first-time buyers to the

sidelines. is this a renter's market? more on that, next. [ bagpipes play ]

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the hunt for housing this is now in full swing. a lot of people have been complaining about rates rising

but it's still historically low. good news if you're looking to buy a home. buyers have headwind going against them. we always talk about is whether things have gotten more expensive in terms of affordability. i can't imagine that rates have gone up that much and prices haven't gone up that much. isn't it still a pretty good time, wouldn't you say, nika? >> it depends on where you sit. if you're referring to a trade-up buyer, of course, it's a little bit more easy. but if you're talking about a first-time buyer, they largely are still on the sidelines. credit conditions are still tough. they still only represent about 28% of the overall market. >> would you go 30 year now? some still have to make decisions about that. it just seems like -- is a seven-year adjustable a big risk at this point, do you think? seven-year fixed?

>> not going into the details of a mortgage, rates are still very low by historical standards. so, for the vast majority of buyers, this is a good time to get into the market. what's been one of the largest impediments of course is not a lot of inventories. and on the other side, we also are seeing that investors played a big role in hard-hit markets. so a lot of that pushed up overall home prices. so home prices in many of the hard-hit markets were upwards of 20%. we think that that number starts to moderate this year. >> i think perhaps one of the problems, too, is that it's still very much a distorted housing market, right? we haven't seen that normal return of credit. we haven't seen the typical sentiment change in terms of how people perceive housing. so what i wonder, i love to hear your views as well, do you think we can be seeing an environment

where transactions are down this year, housing starts stumble for a period of time? >> i think one of the things that is not often talked about is the eco boom generation and apartment demand. a lot of those younger folks are having a larger propensity to rent but credit conditions are keeping them from getting into the housing market. of course, it's going to be a long while before we actually see a lot of that large eco boom population move into the single family market. of course when you look at median age for marriage and other factors that are large demographic changes and shifts, we see that moving out. we also are seeing a lot of demand from baby boomers who are also downgrading into much smaller homes. but many of them are also moving into active adult communities.

so we continue to see some of this shift and demographics play a large role in the housing market. >> anika, how hard is it to get a mortgage? i'm hearing horror stories, people with good credit records, willing to put down 50% cash and can't get a mortgage. >> you know, credit conditions are still very tight. again, it depends on where you sit. for those that have good credit, it's a lot easier. specifically for the young adult population, they typically have a fico score that's 50 points lower in a good time. so they're going to have a harder way to go. we've seen mortgage purchase applications start to edge up in recent weeks, which gives you the sense that we're starting to get traction and we're getting more traditional buyers back into the market. >> i have a tough one for you, because you're wells fargo.

>> okay. >> from a policy perspective does the concentration matter? >> does the concentration matter? concentration doesn't necessarily matter but what we're looking for is a healthy housing market. and a sustainable housing recovery. it's not only good for the banks but it's good for the economy. >> thank you. we appreciate it. we have to run. that's a big number. >> thank you. >> good to see you, thanks. >> she handled that well. >> you always do that. >> i know she just works there. it's an issue. it's a big policy issue. >> we have to go. coming up, the clock is ticking. we're just minutes away from the march jobs report. up next, we'll talk to rick santelli. he'll come to the conversation. also, steve liesman is coming to our league of experts to get final predictions before the clock hits at 8:30 eastern. back in just a moment.

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the march employment report just minutes away. dow jones consensus, number to beat. let's get final predictions from rick santelli and steve liesman. they're joining our league of employment experts. rick? >> 189,000, 189. i don't do the unemployment rate. i think it's silly to pay attention to it. it doesn't really tell us any

information. tell me the participation rate or population to labor ratio. 189 on the nonfarm headline. >> we'll hold you to that. >> steve? >> i'm leaving my model behind. >> your model is like 150. >> 180. i'm going to 225. because i think there's snap back in there. unrequited job hiring. >> you want to throw a rate out. >> i agree with rick. i don't know what it means. how many people left the work force, how many came back in? the unemployment rate means the least to me. >> we have to go. >> hours? get back to hours? >> up a tick. >> up a tick. we have to -- >> i think ed luzier is wrong. >> coming up, the march employment numbers are minutes away. we'll see what that anticipated thaw is all about. find out next. we head to a break. take a look at equity futures.

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futures have been staying there. they've actually ticked up a little bit. a lot of people used numbers that have a three handle. we're about to see. hampton pierson, the guy we want in this position right now. he's at the labor department with the numbers. >> up 192,000. march nonfarm payrolls increased by 192,000 jobs. the unemployment rate is 6.7%, average hourly earnings unchanged. the revisions are significant. we've added an additional 15,000 jobs in january, 129 was the early number, the revised number is plus 144. february, plus 22,000. revised from 175 to 197,000. so 37,000 more jobs over the previous two months than what had been reported. the private sector, all of the job gains in march were in the private sector.

plus 192,000. the big gains, plus 57,000, professional and business services, 30,000 food services and drinking places. health care and construction, both added 19,000. the government, however, lost 9,000 jobs. weather related impacts, in the month of march we only had 612,000 people working part time basically weather related regions, compared to over 6 million in the month of february. average hours worked increased 34.5 hours, up 0.2%. the u6 unemployment rate is now at 12.7%. long-term unemployed down slightly, 3.7 million, 35.8%. the labor force participation rate at 63.2%. there's an interesting statement from groshen talking about the job recovery.

we lost 8.8 million jobs during the recession. the private sector has recovered all of those jobs. in fact, it's exceeded that and has produced 8.9 million jobs since february of 2010. but government employment has lagged. overall, we're not quite there yet as far as recovering all the jobs lost because of the recession. back to you guys. >> okay. thank you, hampton. let's get back to our panel for market reaction. if people hadn't gotten ahead of themselves, steve, this is probably something people would be happy with. what gets us up to those ridiculous numbers? things get better, then we extrapolate. is this good enough to satisfy the bulls? >> i think it's close. the revisions and average weekly hours, michelle and i were talking earlier, a tick in weekly hours is worth 350,000 jobs. >> okay. >> you can get there anywhere you'd like. you can add new people or work the people you have longer you

had a big pop by the way in manufacturing hours, 41.1. overtime hours went up to 3.5. where you didn't get it, which is disappointing, is in earnings. you had earnings down a tick or a tenth of a percentage point. you have pretty good distribution in the jobs. i'm looking here, i see one negative, manufacturing, not quite sure why that's true. you have the temporary help bounce up. then you had 500,000 people attracted into the work force. could be a sign, we'll have this debate until kingdom come or back into the work force. the long-term unemployed, will they come back? they had 500,000 come back this month. here's the good story, you're back up to 200,000 average. 197 february, 191 in march. you had just the one dip, the 144 in january and we're back up to trend.

that's why i think it's a good story. >> austan, better than you thought or you like it? >> i think it's modestly improved. it's what i thought it would be. i'm happy they're revising back the weather numbers. probably means the fed stays on steady but it also means that everybody said we finally turned the corner, we'll be booming like crazy. i think they'll have to hold off for a few months. >> in the old days this would have been called a goldilocks number. it shows improvement, it's not too hot, not too cold. the fed can stay on hold here, continue what they're doing, no volatility. it's a nice number. >> are you calling that now or in the old days? >> no -- >> no, no, no. >> you don't agree with that? >> no. this is an economy that desperately needs to add lots. it's not nice. we should be adding 300 k, 400

k. >> i'm not talking as an economist. i'm talking as a portfolio manager. >> i'm talking as a human being. maybe there's a difference. >> i'm talking about my day job here for a second. my day job needs a good but not great economy to continue. that means the bull market continues for a longer period of time. >> i look at this and i say, these are like consensus numbers. >> exactly. >> that's 2.5 gdp growth. that's not enough. you're going to need going forward, and i'm a profits guy, profits are the mother's milk of stocks. >> absolutely. >> profits are slowing, slowed some more. you need revenues. they come from nominal and gdp. this doesn't show me nominal gdp. the average earnings is a terrible number. janet yellen will look at this number and make her even more dovish. this is a lousy number. hours worked, i'm glad that's gone up.

that may be the saving grace of the whole report. the broader unemployment rate which she looks at, that ticked up a tick. you don't really like that either. the overall employment rate at 6.7 didn't do anything. i don't see anything to cheer about here at all. i really don't. >> the we have to consider where we're coming from. at this stage in the recovery, 200,000 or so would be quite welcome. that would be a goldilocks scenario. you have to think about the fact -- >> six years ago. >> we're seeing 300,000 or so. that's how you reduce the slack. >> i have my friend rick santelli. rick, there's a body of thinking on the street, rick, that expects a real upshift, okay, a real upshift in the economy. and to me, given the lack of business investment, i want to start there, because i think the numbers aren't going to change that story. given the incredible uncertainty

about obamacare and its taxes and regulations, given the fact that these guys in washington will not abolish, abolish or at least reform the corporate tax so businesses are not going to unleash their cash flow and their profits, given all these policy issues and all these internal economic issues, i don't see this big surge this year. where's this surge going to come from in the economy? >> no. i mean here's the way i look at it. we could cut it down to a lot simpler explanation. we've become europe in terms of the type of data we cheer, which implies the type of growth path we now call, oh, it's pretty good, goldilocks. the problem is there's nobody to take the place that we used to hold. if you're looking at the globe, grade it on a curve, all the analogies, the cleanest shirt, whatever you want to say, we know that we need 3.5%, 4%, it's six years after a recession. i'm tired of that excuse. we didn't get the type of recovery because too many crisis

management type politicians and bureaucrats still have the reins in their teeth and they're like jaws on james bond, they're not going to let go. >> i take that as kind of insulting to europe. >> no. >> france is cutting rates right now. >> do i look politically correct to you, joe? does this look like a politically correct face to you? >> no. it's insulting to compare us to europe. they're getting more capitalists than we are. >> the french guy, elan -- >> he now fires his prime minister and said we're going supply side. >> elan found religion before our guy. >> for them to speak free market -- >> that is just not accurate to europe. >> that's insulting. >> no, it is not, joe, the united states is doing better in job growth, economic growth, better on the inflation front,

in every regard. somebody needs to stand up for america. >> let me ask my pal, austan goolsbee. >> i do stand up for america. it's the greatest. it's amazing our economy is doing this good considering everybody driving it is holding the steering wheel this way and looking this >> austin goldsby, what do we need to do to get economic growth minimal 3.5, 4%? >> the key is we have to be growing fast for that to happen. i think the good news is that over the last four or five months, i think washington for the first time is becoming less and less important for what the growth trajectory of the economy is going to be. i think if you look at the jobs numbers or the gdp, the fiscal drag is going away. the focus is going on to the energy sector, going to

manufacturing, business services coming back. we're finally getting back to a more normal let the private sector lead the way. >> austan -- >> come on. >> how things change, mr mr. goolsbee. >> you and ron. >> i said that at the white house. >> maybe it's because you've seen what the governor has been able to do in illinois. >> i want to either abolish or substantially slash the corporate tax rate to bring money home. >> i know you do. you've wanted that. we disagree on how important that would be. i think you are right. we need to see capex and exports being the big drivers of growth, not thinking residential investment and consumer spending will be the thing to bring us back out. that's not going to work. >> it's energy. energy is absolutely holding this economy up. if it weren't for the energy revolution, if it weren't for the fracing revolution we'd be

in worst shape. >> easy. >> what did you say? >> energy. fracing. >> okay, fracing. >> if it weren't for the fracing revolution and the horizontal drilling and the harold hamms of the world, this economy would be in substantially worst shape, energy, which no one expected ten years ago has become the linchpin of the american economy. >> excellent. all right. anyone? you guys okay? >> i'm not okay. >> i just want to say i thought austan was talking about the idea that government being out of the way means government is no longer subtracting from job growth. that's a zero. it's not negative at least. is that correct? >> yes, that's what i was saying. that's absolutely right. >> the government has been subtracting, giving rick his wish. >> he did sort of imply the private sector has the answer. >> of course it has the answers. >> you don't believe that. >> government can become not part of the problem. >> can i say, though, those government spending multipliers

absolutely failed. fail. struck out. by the way, the monetary multipliers have also failed. let's be honest about this. let's be honest about this. >> let me let you on his show. you argued with santelli. >> i'm ready to have a discussion and debate with my good colleague from the state of connecticut anytime. i think he's one of the brighter -- >> i believe he's another shantell. >> he's not another shantell. >> we have to get out of here. >> rick santelli free market, p free market capitalism is the best path to prosperity. >> absolutely, absolutely. >> austan? >> i agree. >> he would agree with that. we all agree except for liesman. >> he never liked fracing. >> that's all i mean, especially in times of recession. >> thank you, austan. even richard believes that. thanks to rick and steve as well. thanks to larry kudlow. coming up, more reaction to the

employment report. we get jim cramer of kudlow and cramer. either way. david letterman planning his exit from "the lay show." we'll talk about his potential replacements, next. e financial noise financial noise financial noise

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are doing. they've all gone up marginally. dow looks like it will open up 57 points higher, s&p, close to 8 points higher and the nasdaq looking like it would open up about 16 points higher. the other news of the day beyond the jobs report in entertainment land, david letterman calling it quits. he plans to retire from "the late show" on cnbs in 2015. >> we agreed we would work together on this circumstance and the timing of this circumstance. i phoned him just before the program and i said, leslie, it's been great, you've been great, the network has been great. but i'm retiring. what this means now is that paul and i can be married. ♪ >> i'm not sure we understand that joke completely. >> why did he need to retire to marry paul? >> i don't get it. that's like all his jokes. >> you think you're supposed to

laugh but -- >> i'm not sure. that one i'm not sure about. letterman is 66 years young. he began hosting "the late show". >> you say that for me. >> just say old. >> i'm okay. >> he began in 1993 after leaving nbc, the parent of this network. there are no immediate plans for who will replace him. a guessing game, though, craig fergus ferguson, chelsea handler announced she's leaving the e-network. or stephen colbert, i might for for this. i love him. he comes after jon stewart. i think he's great. >> can he be anything if he's not pretending to be bill o'reilly? he needs bill o'reilly to be anything. >> he does it in character. >> when someone 37 says 66 years young, it's almost like you're pitying. you're like giving this false sort of, i understand you feel bad about being 66 but i'm going to say it's okay.

because you're 37. don't do -- you know? >> i will be 66 one day. >> you don't really believe that, though. >> i try not to. >> there you go. you think there's something wrong with being 66. >> i'm a big letterman fan. >> i want jim cramer. >> i used to stay up really late to watch letterman. at 12:30, i'd watch arsenio hall. coming up, jim cramer is weighing in on the jobs report, the implications for the fed and the markets. then, place your orders, grub hub beginning trading today after the opening bell. we'll talk to the analyst about the food delivery service's ipo. "squawk" back in a moment. revolutionizing an industry can be a tough act to follow,

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the global markets correcting some statements, its president william o'brien made on cnbc earlier this week. here's his back and forth with the president of iex.

>> my question to bill if he's launching these accusations -- >> i'm launching accusations? >> what market data do you use to price trades on direct edge? >> we use the direct feeds and sipps in combination. >> not what you use to route, what do you use to price trades on your matching engine on direct edge? >> we use the direct feeds. >> no. >> yes, we do. you had a 300-page commercial so let me talk. >> at issue is the last part where o'brien said the company used the direct edge exchanges used high-speed data feeds in determining prices for trades. and bats said two of the exchanges use slower feeffeds the sips, and they said it will be transing o initions off sips direct exchanges next january. >> i don't know if that makes it better or worse. let's get down to the new york stock exchange. >> i think it makes it better. >> i would have liked to have

reunited cramer with kudlow. we reunited today with larry. i think he's good when the game is, like, instead of, like, you know, sort of going back and looking at everything at seven, it's fun to have him here before stuff happens, don't you think, jim? >> larry's a great economist and i wanted to know what larry thought about unemployment benefits being cut off long term and also food stamps have done to this number because i know larry's a clinical economist who is not emotional about it. larry? >> yeah, larry, you know, now he's gone. i think we should have had you two guys on together. you're not going to -- your name was not bandied about to replace letterman. >> no. it's interesting because, you know, i've worked for les moonves, i proudly would call him my boss if that's what letterman addresses him as, the owner so to speak. i don't know why because i could fit it into between the other two shows. it's not a rob. >> are you a leno or letterman

guy or are you going to be politically correct here? >> i'm friends with some of the people who are writers for letterman so it goes way back. >> it goes all the way back. >> really for a long time. >> what do you -- do you tie it to anything happening right after jimmy fallon? i was thinking he was hoping to make inroads on "the tonight show," but it's not happening, though. >> i will be political here. fallon show's is incredibly funny and i watch the clips in the morning, god, he's great. the paul rudd, the paul rudd karaoke may be the best tv of this decade. just fantastic. >> i am out of here, who needs this. >> i've been trying to get a fallon ticket, if you can get a fallon ticket, i only work at the network. >> i'll get you one, what's your e-mail? >> we'll share it after hours. >> thanks, jim. see you in a couple minutes.

we're on ipo watch and coming up next we'll look at a company that many city dwellers may know well, if you have ordered food from grubhub or seamless, stick around the company is set to begin trading today, we'll talk to an analyst when we return. return.quires chr 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.

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welcome back. grubhub pricing its ipo last night, shares of the nation's largest online food delivery service firm priced at $26 and set to start trading on the new york stock exchange later this morning. here with us to weigh in on the ipo is james chakmack from the chelsea advisory group. i don't understand this. i understand it because i use it, but this is a $2 billion company that basically delivers food. how do you justify the price? >> sure. i mean, i'll start out by saying i'm an avid user of seamless and when i do look -- >> seamless in new york. grubhub bought seamless. >> the two companies merged last may. it's a very attractive business model. you have a virtual cycle of diners and bringing in more restaurants. the business model has grown over 40% 75 cent of dollar per incremental revenue flows straight to profits and it's a company that is in the very early stages of its development right now. >> and do you see this growing

internationally? >> yeah. >> you think it's just a u.s. play? >> no. look, they're in 600 markets right now and you have the company just eat that just went public, debuted in the uk yesterday. >> what would be your target for this company? >> i don't cover the stock officially so i don't have an official recommendation but i will tell you i cover open table and it's a company that's a good comparison for grubhub, when you look at the valuation of where the $26 pricing versus opentable it's approximately in line when you look at the out-84 estimates and i do think you do have grubhub is a company that as a much faster growth profile than an open advertise table. >> why don't they get into the opentable business? just different businesses? >> it's different businesses. one is going after high-end restaurants and one is going after takeaway restaurants. >> got it. thank you. appreciate it, very, very much. >> talk all about it.

you want gators or uconn? >> i think i got to go uconn. >> really? >> yeah, why not? >> how about wisconsin or kentucky? >> wisconsin. >> really? i'm taking -- i'll take the other side of both of those. can we do that? >> as it would be. make sure you join us on monday. "squawk on the street" is next. ♪ 192,000 that is the jobs number for march in line with expectations. good morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber at the new york stock exchange. futures taking pretty kindly to that number, although not all of the internals are that encouraging. we'll break down the numbers and tell you what it means. the ten-year yield down to 276 and dollar fell and the gold did jump. and europe mostly in the green but the spanish five-year yielding below the u.s. five-year for the first time