>> 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 since 2007.

our roadmap this morning begins with the jobs number coming in just shy of expectations for march, january and february revised higher. notably all of the march gains came from the private sector. the ipo parade continues today with no less than four offerings the most notable online food delivery service grubhub, the ceo's going to join us after it opens for trading. and exxon the world's largest publicly traded oil company has agreed to disclose more information about the risks of fracking. we're going to tell you why. but first up, the numbers for the march jobs report nonfarm payrolls up 192,000 forecast called for a gain of about 200,000. january and february pay ros revised higher by a combined 37,000. unemployment rate held steady at 6.7. there was an increase in job seekers. average hourly earnings fell by a cent. and then people looking at things, guys, like hours worked. >> yes. >> up 0.2 hours which given all the talk for pent-up demand for labor post winter doesn't seem

like much of a payback but that's the debate today. >> i think just in terms talking about the stock market reaction, yesterday i was thinking all about our nail the number. because there was this 300,000 number that had spread like wildfire. the winds, david. to desk to desk to desk. and you saw the high multiple stocks contract, collapse, as people said i want to get -- if it's a 300,000 number, i want to go buy every industrial imaginable. will this whole move yesterday repeal itself? i don't know. because there's a lot of insiders telling, we have more deals than i can shake a stick at. but that number was dead wrong and that's why you see a little bit of step up. >> in terms of expectations, goldman was at 200, jpmorgan was at 200, morgan stanley was at 200. only a document had -- i think the high was 275,000 at deutsche. >> there was a subrosa number

that had crept through. because every time you said, well, hold it, maybe this is the level where they're going to stop selling some of the high multiples, you heard, no, it's going to continue right into the 300,000 print tomorrow. so, i agree with you, that it all looked like 200. but there was this number underneath that really caused a lot of selling in the afternoon market. >> why are futures up so much? >> i think maybe, you know, the pressure's over, the pressure of people selling the high growth stocks and go back to that -- those stocks -- remember, the nasdaq was down 0.9 percent. it was hideous yesterday. >> no. that was -- we were back to the first quarter. >> 2000. it was year 2000. i remember because at that point we had just come public with the street, street.com, brokers would call me, major desks and say, listen, you'll get killed, i know you won't sell the street. but you'll get killed. let me put a high basket on high multiple dot-comes and you can short them and put a collar on and don't get hurt in your own

stock. i saw that activity since march of 2000. brokers frantically working baskets selling high multiple stocks to hedge for venture capitalists, to hedge for managements. i have not seen this behavior since 2000 and it's -- they're wilting. >> what does it mean? >> the two-track market has now -- i said as long as it's kept within the hydrogen fuel and the small biotech and the 3-d printing, well, now, no, it's rife. >> it's spread. >> it's spread and there's no firebreak between the high growth and the rest of nasdaq. i think the nasdaq gets a nice little bump here. but you got to sell it. there's too many deals. i don't like it. i don't like the nasdaq. >> you don't like the nasdaq. >> if it rallies. ims, grubhub, grubhub, look, i understand, i know we're going to talk about it. the addressable market for takeout is $67 billion. my dad sold takeout bags to restaurants. $67 billion addressable market, jim, well, not really, but you

understand when we start talking about grubhub like grubhub represents colgate maybe or att, grubhub, do they fit together? is that like -- do you like that s.a.t. question? grubhub is to att as -- >> verizon is to -- >> to o-power. oprah's got her own stock. o-pow, not really, but it puts smiley faces on your bill according to the -- it's got to stop. it's got to stop. we need fewer deals and i'm telling you the truth there's no correction what i said in "the journal." >> the number and to the economy and the nasdaq's performance, any connection you want to draw here? >> no, it's connected to investors frantically trying to hedge themselves as they watch their fireeye getting cut in half. >> we're getting the first quarter performance from hedge funds and you are talking about double-digit declines because exactly what we were talking about in the first quarter, particularly the last few weeks of the quarter. >> they are splunking.

>> they are splunking? >> have you seen splunking? >> i haven't. >> you need a magnifying glass. some of the stocks are in free fall. >> give us splunk. >> they've given up the whole gain for the year. software as a service has become a series of curse words. it should be added to the late george carlin's list, software as a service goes with the seven other words you're not allowed to say on the air. >> software as a service. >> i told you not to say that. >> it was buried and i wanted to repeat it. >> it is it a precursor to the overall market rolling over? >> in 2000 the money flew out of the nasdaq and went to the s&p. i think the s&p at 17 times exis okay. you mentioned the bond yields, they are showing they're not going to 3% anytime soon, so i think the s&p is okay. but yesterday if you look at the s&p it was basically flat. and the nasdaq in free fall until the last half hour. that's a dichotomy that people at home have to worry about.

we're not done with that selling because the venture capitalists and the insiders just seem to have no -- there's no price that they won't go. the mysterious splunk block i thought said everything. the mysterious -- did you see the in misserious splunk block? >> i was on acela. stopped most of the time with no communication. >> you are the seller of the acela? >> yes, identify wrs, i am. >> i am a buyer of a european fast train. >> the market that is the second market that i don't like was in charge yesterday and it was a little frightening for people to watch these stocks all go down in unison. many of them using the curse word the chain of curse words i mentioned to you. >> your argument to put a cap on it that is not done. >> no. >> people who wanted to close the book on the story of march is not over. >> no. ims is a real company, grubhub is making money.

o-power i sold to you. but this parade has to stop. there's good solid companies in the s&p but we cannot have deal after deal after deal and act as if the supply isn't wrecking a portion of this market. the supply is -- i was -- i don't know if you walked outside and got hit by prospectuses. you got to have kind of a canopy to not get hit by new deals. >> s-s f1s flying all over the place. >> you need the virtual helmet. >> you do. >> it's go to stop. grubhub, by the way, talking about s-1s flying out of windows is going public today. pricing its ipo at $26 a share. that was above the expected range. the offering value of grubhub at more than $2 billion. the company will trade on the new york stock exchange under the ticker symbol grub. we're going to bring you the opening trade, of course, and we'll have a live interview with ceo matt maloney.

we've already gone over what you think about these. >> $1.3 billion in gross food sales. look, i can create a story for anything. it is profitable. it's profitable. >> different types of ipos, this ipo obviously and the growth business and ism health which is sort of those let's bring it public, let's take it private, let's pay ourselves lots of dividends and let's bring it public. >> ism was a service uf uyou uso use to foiind out how is averpr doing and there would also be some drug that you were thinking. well, maybe this drug is going to accelerate including the statins, a lot of people hit it out of the park using this data. grubhub a real company, but at the same time because it's profitable, they process 135,000 transactions per day. at the same time the symbolism is not lost on me. because as we say, the ipo parade, i hate to rain on the parade, there's some really nice

people going to make a lot of money. but we are overtaxed by deals and i think if i don't sit here and say it because i lived through 2000 and it is just -- you just don't want it to happen again. >> yeah. >> you don't want to. >> any sense of what the window looks like, if this whole year is being front-end loaded because people feel that sense of urgency? >> i think it is. but, remember, it's also followed up by insiders who can't -- there's no level they won't sell. i don't mean to pick on fireeye, people were saying, jim, you think even the technology is not even as good as you think. but if you look at the fireeye when the stock was at $96 they file a deal, the deal gets priced at $82 $14 million shares and it hasn't been able to lift its head. maybe i can sell some other deals, short splunk against it and viva against it, maybe i short concur. there's a humongous amount of selling. humongous.

it's not good. >> to be fair, the supply of stock overall is a lot less than it was a number of years ago. >> only nasdaq. the s&p i know that's why i say you can coordinate because the buybacks in the s&p are cbs, it's time warner, viacom. did you see that david letterman called -- >> leslie moonves. >> the owner. >> the man who owns. >> owns the network. >> leslie does own a lot of stock but that's not quite correct. in david's mind he probably is. >> but there -- yeah, master/slave there. how much did letterman make last year? there is tightness in the s&p because there's not a lot of supply because the insiders don't own like what these guys do over at nasdaq. >> right. >> hundreds of thousands of shares if you look into of the selling. if you hit up the news of one of these stocks, i won't be too much on my soapbox, but it's so much like 2000, scary. oh, 150,000 shares filed, do

this, 2200. >> and we went with the biotechs it's not like 2000, the multiples aren't anywhere where they were near, jim. the companies are all profitable. >> no, they're not, david. >> the ratio that are not profitable is higher than in 2000. >> they are talking about -- >> not the facebooks of the world, then. when you say 2000 -- >> facebook's a very profitable company. >> when you say 2000 are you referring only to the new issues market? >> yes, only to the new issues. the rest of the market is quite different. facebook let me be very clear, i think they'll report much better than expected numbers and it's not expensive at 2015. and google not expensive at all. valued on revenues are hard to figure out where they should stop going down, that's my point. i want to get some news this morning but i haven't told the control room. take a look at myelin, m-y-l.

there's more news on it. m-y-l reports it was interested in making a move on a swedish rival. that company, meda, and i'm not sure if i'm pronouncing it correctly has put out a statement saying yeah, we did speak to mylan, they came to us regarding an indicative proposal to combine the two businesses and the board convened and they decided to reject the proposal. all continued discussions have been terminated without further action. >> terminated with extreme prejudice? what is this "apocalypse now"? >> said discussions were terminated without further action. decided to reject the proposal. i wanted to share that, because mylan shares are yup sharply. and they may reverse. >> swedish tax regime versus u.s. tax regime, it's an arbitrage.

it would have created a colossus. >> and it would have been another tax inversion. the idea that you'll get any sort of big tax reform bill or corporate tax changes, but these continue to move quickly and mylan is dealing with so many of its competitors that have already inverted whether it be to ireland or somewhere else. >> really have to watch the story the offshore regime happening right in front of the president and congress. they don't seem to be aware of it. too busy talking about i don't know what. >> got other issues on their plate trying to put some headlines on the back page instead of the front page. >> exactly right. when we come back exxonmobil speaking to headlines is in the news and fracking has a lot to do with it. we'll talk about that. also ahead the first reaction from the white house to this morning's jobs numbers and we'll talk to jason furman the chairman of the president's council of economic advisers. one more look at futures the jobs number if you missed it this morning 192 and the

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exxonmobil has agreed to disclose more information about the environmental risks of

fracking this after negotiations with investors and environmental groups. wall street firms racing price targets on anadarko after a settlement with the government regarding environmental cleanup claims, it's the biggest cash settlement regarding the environment in history, guys. >> at the same time i was worried about an $8 billion settlement. >> or even 10 or 14. remember when the judge came out with the unexpected range -- >> i know. they were asking for 20. >> and apc was down sharply. the stock was up 14.5% yesterday anadarko. do you think, though, this having removed the liability increases the takeover chatter game again because it becomes more real? nobody is worried as much as the liability. >> when you look at exxon and what they have to do to grow, they have to buy a company the size of anadarko. i think the world of their management and they've got great properties and selling off some. anadarko has been the bluest

chip of the speindependents, if were royal dutch, i would make a tender. my charitable trust owns it. it's as good as eog. certainly as good as continental resources, but i don't know, it's gotten so big so fast. maybe you can't take it over. >> then there's the exxon news, apparently this report on fracking isn't going to come out until the fall, september, sometime around there. but a little more transparency from a company that has a lot of critics saying they should be more transparent. >> i think -- i'm a pro-fracker fan. i drank a beak of the fracking fluid. i think that halliburton has been incredibly open about what fracking means, but people think that exxon's hiding something. i don't think they are. but do you know what, the more people who understand it i think is better for exxon because

exxon southwest -- exxon is xto, they want to drill xto being one of the great natural gas companies. >> but not a great acquisition. >> be careful they come right at you. >> what is their response? >> mr. simpson from xto is mad that he felt he got the better of exxon. >> what's the response that says, though, that's not the case? >> i don't have one. >> okay. just get mad. that's all. >> i can't -- i can't get mad or even back at them because mr. simpson is a great guy and i helped bring the company public from goldman, but, yeah, exxon paid too much. >> at a weird time, too. >> yes, indeed. >> when we come back, cramer's "mad dash" and counting down to the opening bell and the futures looking okay after the jobs number. we'll see if it holds when "squawk on the street" comes back. back.

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not going to be happy with this. no, you're not man. you haven't looked behind you yet. you remember candy crush got you upset with all those things. >> what is this? >> they have sandwiches walking around. oh, my gosh, spongebob, remember that guy with the cucumbers? never mind. >> let's talk "mad dash." >> yeah. >> and let's get to sandanter. i didn't mean to distract you. >> if you're going to say it, say it right. ubs this morning i thought we'd never live to say this raising numbers on sandanter. it's a remarkable thing, carl mentioned the five year, don't be distracted by the bag of fries behind me. the huchlen b ehuman bag of fri!

this is incredible. what they are talking about real estate exposure and no room for complacency but the macro trade is not well. bank sandanter has been selling a lot in our country and the world but this stock is not done going higher. if their five year -- >> their five-year is below ours on the yield. >> do you think there's an arbitrage where people are buying our five year and selling their five year? >> incredible. >> i'm not talking about the spanish civil war but that country has 27% unemployment. >> wow. >> this is amazing. >> look at the move of that in the course of a year. >> sandanter has gone from being spedgeive to having maybe the best performing sovereign debt in the world which means the stock is way too cheap. $9 to $12 or $13 without a problem. >> you've been a believer no doubt about that. >> we've got coming up the live

interview with the white house economic adviser jason furman on this morning's job report. it's a very big day for ipos you'll see people running around as sand witwiches at the nyse. we're back after this. ♪

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you're watching cnbc "squawk on the street" live from the financial capital of the world on a friday. busy morning. a jobs number. a bunch of ipos and, of course, the opening bell set to ring in a couple minutes. we actually have four ipos today and we'll be waiting for trades out of grubhub pricing at $26 and they boosted the range from the low 20s. . power pricing at $19. ism health at $20 the biggest tech ipo so far this year and over at the nasdaq five nine pricing at $7 below the range. which one are you watching the most? >> i am not watching ims. i was watching for fervor. i was chatting with a chicken caesar wrap, i'm not kidding, there's someone dressed as a chicken caesar wrap and no doubt on wraps, and i'm watching the

grubhub measure of enthusiasm, if you remember during the period, i'm talking about the ipos. if you remember the enthusiasm in 1999 and 2000. if you like the service, if you like the website, you bought the stock. lots of people like grubhub, a lot of my friends use grubhub. i personally do not. nor does my restaurant. but this is -- when you're here talking to a slice of pepper reaspepperroni pizza, it has a level of absurdity. >> we'll come back to the 2000 analogy. >> did you ever talk to a slice of pizza in 2000? >> no. but i saw a lot of companies that had absolutely no business model that literally had put it together on a napkin and any bank said it's a great idea, let's take it public. three weeks later it was gone. >> and it's a profitable company and by the way, the wrap was very nice. there's a piece of salmon, that shows you that times have

changed. salmon, not cheeseburger. >> you have the pepperoni pizza on the other side. >> that could be low fat cheese. >> there's the opening bell and a look at the s&p at the top of your screen. at the big board grubhub the online and mobile food ordering company celebrating its ipo. we are going to talk to ceo matthew maloney in the next hour. over at the nasdaq five nine, a provider of cloud software for contact centers also celebrating its ipo today. you raise a really interesting question about the marketing of all of this. because you can't blame companies for wanting to market. >> no. >> if that's their going public strategy. on the other hand, if they are having to be loud because it is so crowded, that's a different -- that's a different story. >> i think that there's a mixture of companies that are selling times revenues and selling times earnings. i think -- i accept -- i accept a little more fervor for grubhub because it sells times earnings. but my problem is the fervor

itself. because fervor is not a great thing. you want a little more subdued. ims, i hope that deal goes a dollar, maybe two dollars not more than that. that would be good. >> it probably will. it's an important and a big deal, but as you say, it won't likely be met with enormous amounts of fervor or on the other side, you know, not likely to break syndicate. the private equity firms and sellers there. it's been a successful thing for them. >> that's true. but i worry that what i look at is the sea of insider sellers six months from now producing more supply. this market -- that part of the market can't handle more supply. the new york stock exchange part can. i mean, the old line. old line. there's three. there's old line. there's new economy. which i'm fine if it's making money. and then there's ipos that have been late in the food chain here. and i just think that i'm just worried about that one, the nasdaq, that you talked about below the range. i'm worried about some of the

biotech. i'm concerned. i'm concerned. >> okay. >> sure. all right. >> and i don't think anybody can begrudge you that. people might look for other sort of touchstones in this narrative from a few months ago, a twitter perhaps, which had a nice run. >> right. >> the lockups do expire and it's now back to the mid-40s. is that a cautionary tale? >> you know, look, there was this wave, i don't know if you remember, a wave of restaurants was really excited about, the thing with restaurants is that natural and fresh is really good. potbelly. take a look at potbelly. there's a company that came public and opened at $33 and today is at $17. that's not a two for one split, potbelly is not exactly a -- when i think of potbelly, i don't think of six-pack abs. do you think of that when you think of potbelly? >> no, i don't. we just mentioned twitter. that move from 73 which, by the

way, if you remember the run-up to 70-something was absurd. incredible. >> and how is the stock doing today? >> and the slowing growth rate and dealing with the scaffolding around the service to make it easier for people to use so you could fix that but now we're back to 43. >> no earnings on the horizon as opposed to facebook where identify sai said there's great earnings profile. thank you, david, coming to the light side from the dark side over there for a second and recognizing there are two kinds of companies. there are companies that are hope. and then there are companies that i can give a price to earnings multiple to and if i can have a price to earnings multiple, i'm much more comfortable. >> there are. but you might be better off some would say taking the risk on something like that where there's a great deal of opportunity. those who believed in amazon in his early days and priceline could have said the same thing about those companies have been rewarded multiple times over. >> that's a great point and priceline sells 19 times earnings with a 19% growth rate. >> it does now but in the early

days after it went public -- >> i went to visit priceline and thank heavens there's an office and desk and people on phones so i knew it was for real. that's the kind of boots on the ground research i had to do for dot-comes back then, knock on the door, find the door is not a phony hollywood set. it is true. every company, though, is not amazon as you know better than anyone. not every company can manage to be able to pull off $100 billion market capitalization without ever showing a profit. >> no, very few can. but they do generate free cash flow and that's what they're based on and that's what their investors look at that and sales growth which has still been astonishing. >> and the cloud has cash flow. the company we work for is when the free cash flow exploded. maybe i'm being overly skepti l skeptical. maybe i can't take being surrounded by, like, you know, i'm back with my kids when they were 3 and 5 and we're watching human videos of an -- it's crabby patty.

>> yeah. crabby patty. >> i got crabby pattys here. >> the banana splits, do you remember them? >> micron is the second biggest gainer on the s&p. >> this is dram and flash. in the conference call they do say, listen, there's some supply but the gross margins really held up well. they tell a multiple-year story. i was quite impressed with the micron management. that was the best micron call i have heard. i expected the stock not to be able to sustain this. this stock is not going up and the needham call that it could go to 40 a little aggressive. hyper starts it with a buy. i did like mu, it's not done. it's not done. >> a lot of love notes from the sell side for micron today. >> it's very inexpensive stock. >> all right. with all that, let's get back to the jobs number here this morning. nonfarm payrolls if you missed it came in at 192,000, that was slightly below the 200,000

consensus. unemployment remains steadily at 6.7 and let's get the first reaction from the white house first on cnbc jason furman the chairman on the president's council of economic advisers. good to see you this morning. >> good to be here. >> after all that winter and all that so-called pent-up demand for labor, is 192 satisfactory in the white house's view? >> i think this is consistent with the steady, solid recovery we've had. we've now had 49 straight months of private sector job growth, a total of 8.9 million jobs. when you're asking about the weather, i think we've probably ended up seeing that more on hours than the total number of jobs. hours fell a lot in those cold months. hours recovered strongly in the month of march. >> 0.2 hours, right? was that as much as you were expecting? >> you saw that and in manufacturing you saw 0.4 and the highest on record in manufacturing average weekly hours.

>> all right. so -- all right. manufacturing in terms of jobs added, you know, a lot of this, jason, came out of services, it came out of temp, it came out of bars and restaurants. how anxious are you to see that shift into some more substantive sectors? >> i think if you look at the sectoral pattern of job growth this past month, it was very consistent with the pace over the last year. you saw a lot of jobs, for example, in construction which is going to be -- has been an important source of our recovery and it's important that it continues to be that way. manufacturing was revised up and very strong in the month of february. you take the last two months together and it is on pace for a stronger manufacturing recovery than we've had in the last 15 years in this country. >> all right, jason, jim cramer here. i just want to puzzle over this public policy issue. negative real earnings growth. i know the administration is very pro-immigration. i'm just wondering how will increasing the labor supply from

more immigration actually increase wages? because that mystifies me. >> it's a very simple answer to that. higher productivity growth. you bring people in. you take the people here and give them greater certainty to make the investments they need to start businesses, that expands the economy's productivity. that raises wages. >> well, i also know some immigrants -- i'm very worried, i have kids in college that have tremendous student debt, i have the wherewithal, but many people don't, versus our own students that have a lot of student debt. how do we equalize that with student debt? >> there's a whole issue around student debt that's unrelated to the issue on immigration. and that's why we focus on things like the historic expansions in pell grants, the reform to the student loan program, and, you know, continuing to push on access for college. so, i think that's a critical part of the agenda and that, by the way, is a good way to expand

economic growth while reducing inequality and expanding opportunity. >> jason, to those who would say, you know, it's very important to keep an eye on wage growth and in particular here we still are looking at sort of working families, it eluding them so to speak, and hope for consumer spending more broadly across the economy is going to be based on that. what are your thoughts? >> we faced several decades of challenge when it comes to wage growth, when it comes to inequality. in the last year and a half, we have actually started to see some real wage growth as the unemployment rate has come down. that's put a little bit more pressure on markets. a little bit upward pressure on wages but there's a lot more we need to do and one very obvious thing we can do, the president's actively pushing is raising the minimum wage. we saw connecticut raise its minimum wage to $10.10 an hour. we'd like to see other states do that. we'd like to see employers do that. we've done with our federal

employees and the country as a whole should do it, too. >> the senate is going to vote so monday on the bipartisan bill to restore the long-term unemployment benefits. is the job market strong enough in your view that the benefits should be allowed to expire for some folks? >> we're making progress on unemployment but the long-term unemployment rate is still our biggest cyclical economic challenge. it's twice what it was on average before the great recession began, so i think it's entirely appropriate to continue the unemployment insurance benefits and it's important to understand as unemployment rates come down, those extended benefits automatically phase down. they're really there, you know, in the biggest way for the states with the highest unemployment rates. if you have a low unemployment rate, you don't get nearly as many extra weeks. >> we'll see what the senate does on monday. mostly expected to pass that bipartisan bill. jason, thanks for coming to the camera. appreciate it. we'll see you next month. >> thanks for having me.

>> jason furman over at the white house. the dow up 30 and the s&p up 1894. not far away from 1900. let's get to pisani on the floor and see what's moving. a lot today, bob. >> there is. we're at historic highs on the dow jones and the industrials. here's the talk of the day. take a look at grubhub, remember, $23 to $25 was talk. it priced at $26. $38 to $43 are the indications right now. this stock could very likely open in the 40s. that would be a moon shot for sure. ims health is right over here. this is the crowd here for ims health and $18 to $21 was the price talk and it priced at $20 and indications are $21 to $23 on the upside, but it's a huge ipo close to $1.5 billion, $1.4 billion and an enormous cash. i can't see opower, i can't get an indication but they produce

cloud-based power with the utility industry and they priced at the high end of the price range, priced at $19 can't get you an indication. and the nasdaq five nine on demand software for cloud-based call centers they priced at $7 below the $9 to $11 price target. ipo market strong but off its highs. that is the etf nor tfor the lao ipo. renaissance puts this up and started in october and ran up 20% in march had a problem because all the momentum names largely were ipos in the last year or so. we saw that come down here. it was up yesterday but as you can see off of the highs. take a look at the s&p futures because the economy is getting better. at least the job market is. the revisions in the nonfarm payrolls is what moved the s&p futures up early on. helping us hit new highs overall. the labor force participation rate moved up as well here. but i want to address your point, jim, earlier, about a

two-track market. we -- put up the full screen. we hit all-time highs yesterday but the leadership is -- to be frank with you yesterday was the ugliest all-time high i think i've seen in my life. we ended up 2-1 declining to advancing stocks and the line is having real problems right now. we've got a lot of heavy leverage. margin debt is at an all-team high so that's what you want to keep an eye on. today's a big test. you want to keep the leadership up. gold mining stocks the leadership had a wobbly time, still up, the biotech stocks and emerging markets do well. health care is the leader and micron a really terrific earnings report that company has really turned around $2 billion more in revenues than they had a year ago. right now indications on grubhub remains here at $38 to $43. this stock will open in the $40s. hold on. ims just opening at $22.18 this was the stock, remember, that was a very big company just

opened at $22.18. pricing at $20. guys, back to you. >> good for about an 11% gain. thanks so much, bob. with all that we'll come back to post five in a moment but let's get to rick santelli at the economy, rick? >> thanks, carl. well, if you like the treasury market give you its thoughts on the jobs number, all yields are lower before the number. that usually implies disappointment in some fashion. you can handicap it, but it was really mostly about the yield curve. it flattened dramatically after the last fed meeting and look what happened today. here's an intraday of fives. you see that huge drop? close to eight basis points. now look at the 30 year. it really net change other than a little volatility hardly moved at all. now, if we really want to pay attention to this dynamic, we need to look at the yield curve. look at the fives to 30s intraday spread. eight basis points of

steepening. the proactive part was the short end. the short end has been the proactive part since the fed me meet, of course. now, if we want to look at specific maturities to get a face on it and the perspective, the five year even though the yields moved down dramatically you can see this chart going to last fall. that it really shows that that rate readjustment is still mostly intact from fed day. contrast that chart to the year-to-date chart of tens, still comping back towards january. what's the postmortem with regard to the euro and the meeting and the hinting of qe? you know, if everything is great, of course, you don't need to talk about qe. just like the labor secretary. if the economy is great and he liked the numbers, then you ask him about, well, what's going on with jobless benefits? whoa, story changes real fast there! two-day of the euro, definitely deterioration. maybe not as quick but two-day charts are great. we're building momentum to the downside and establishing a trade under 137 and if you open that chart up a bit you can clearly see that the euro if you

were a technician maybe 134. carl, all yours. >> all right, rick, thank you very much. let's take your attention to post five where grubhub has just opened at $40.63. bob, you ever there? >> we opened at exactly $40, i believe, and remember the point about the stock here. we were talking about, oh, what was it $23 to $25 was the price talk a couple of days ago and they had raised that already, so it priced at $26, just opened at $40 here and you can see a lot of family members and a lot of grubhub people right here. some wives, family members over here. this is one of the great things about being on the floor of the new york stock exchange, see a lot of family people all throughout here, in the back there and there's a lot of people just sitting around high-fiving here. obviously some people have made some serious money this morning and we all approve of that. there's some executives over there you can see in the crowd. the stock holding up $39.60. a lot of hugging going on on the side there. family members and younger

people and older people all in the back there. so, again, a very happy day for the grubhub crowd. guys, back to you. >> all right, thank you, bob. gyour reaction? >> ebita is growing to that and no one wants to hear this can earn 30 cents or 50 cents next year. i look at the multiple, the price-to-earnings multiple on that and say the stock is expensive. i'm just being very clinical on a p/e basis it's expensive. >> they have an adjusted ebita at $38 billion. at least they got it. got some cash flow. >> the one-eyed king. >> you are darn right. you are darn right. every single man. >> two-eyed man. ims i like better than grubhub. grubhub is part of what i worry about, he's a very expensive stock and people don't really seem to care bit right now and they are thrilled. >> it's growing a lot faster than ims health. >> okay. workday is the fastest growing company i've ever seen. >> okay. >> workday, all right, and i

think workday is a fabulous company. >> you wouldn't want to own it this week. >> no, the stocks were rolling over again today. take a look at the nasdaq and it's rolling over again. biotech is rolling over again. rocket fuel, it's a black hole and a good company. just watching the tape and just saying amazon rolling over again. they're rolling over. >> yeah, this is a new low for the year on amazon. for this you got to go back to basically halloween, just prior to halloween, to get a price this low on amzm. >> does it matter? >> maybe it does, maybe it doesn't. maybe it's a good entry point if you are a believer in the long-term growth theory of many of these companies. >> i don't want to disagree about that. the stocks have given up gains and the stocks have really been under a lot of pressure and i just think that if you're going to start a position maybe you wait until the selling's over for heavens sake. facebook is a profitable company. grubhub is a profitable company. it's not google and we didn't talk about the nest and how that

kind of didn't work out. >> you are absolutely taking out risk. but these are not deep business models the likes of which we were seeing at the late stage of the bubble. >> -- earlier, okay, there. priceline got a situation where it's very profitable. sells at 19 times earnings and the stock is under pressure. there's a lot of money coming out of the existing nasdaq to buy the grubhubs. no, you take a profit in priceline and then you get -- maybe you get 100,000 shares of grubhub on the deal and average up. >> you think that's the dynamic about what is going on for why the high multiple stocks are coming down? >> the insiders are selling and the economy is a little better. frankly i got to tell you the unemployment number is not perfect for the market. we are all thinking it's kind of perfect. interest rates are come down and we don't necessarily want interest rates coming down if you work at a financial. the financials needed interest rates going up a little. this is not that great for the

industrials that people piled into. it's not good, not bad. but i just -- i guess i just -- i promised myself after that street.com debacle which i still work at and was the founder, i promised myself if i ever sat here when a stock was priced at $20 and opened to $63 and went to a dollar that i would remind people that this can happen. now, we weren't profitable. but i'm just saying, you know, i feel like it's my duty. it's my duty. >> i wish we could bump out of here with once bitten and twice shy. >> thank you. >> we'll be back with grubhub's ceo matthew maloney in just a minute. "squawk on the street's" coming right back. .

welcome back. i'm eamon javers in washington where attorney general eric holder has just confirmed that the department of justice is, in fact, investigating high frequency trading for possible insider trading violations. let me read you what attorney general holder just said in a capitol hill hearing a few moments ago, this practice which consists of financial brokers and trading firms using advanced

computer algorithms to execute trades has rightly received scrutiny from regulators. i can confirm that we at the united states department of justice are investigating this practice to see whether it violates insider trading laws. the department is committed to ensuring the integrity of our financial markets and we're determined to follow this investigation wherever the facts and the law may lead. now, carl, one of the interesting questions here going into this investigation is where is the hft overlap with potential insider trading violations? will they look at a technological piece of knowledge as actual insider trading-type knowledge. and say that if you had that knowledge a few milliseconds ahead of everybody else in the market, that's insider traffeding. hat would be an unusual perhaps new interpretation of the law but that could be what we're looking at here, carl. we'll have to wait and see what the department of justice and the fbi in new york come up with. >> thank you, eamon. eamon javers bringing us that story. you can just imagine all these

regulators -- >> trying to define a millisecond advantage as a material, not public information is sort of an odd -- >> it's a front run but i don't think it's -- but it is kind of amade izing a book comes out ane stuff has been going on for years. "the times" did a fabulous job. no one cares. >> so interesting how they -- >> be interesting to talk to the rank and file, all of those under ling underlings and say where are we on this thing. we've been working on it for a long time. let's get in front of a microphone. >> this is fulcrum day. you have got to see these stocks stop going down. i'm talking about the high multiple stocks. facebook. here's one that's also a great indicator. solarcity. this is it. deutsche bank draws a line in the sand says this is the right level to buy. it's underperformed the market and it's 88 to 60. if you see solarcity be able to hold then i think you can say maybe there's a short-term bottom in this.

you see facebook, facebook's got to hold. it was a technical level at 59. it didn't hold. it's breaking down if you want to see the reverse -- they have to reverse today. they have to reverse. >> today? >> today. today. >> today? >> i'm drawing a solarcity line in the sand. they have to stop going down or it's going to be the beginning of the end of the -- of the huge nasdaq run that is really based on exciting technology as opposed to inexpensive stock. >> yeah. so much for that selling pressure being month -- a calendar issue. >> thank you. it turned out not to be. watch facebook and solarcity and you can watch twitter which is under a huge amount of pressure. they have to bottom or this will be interminable because there's deal after deal after deal. the stock has no support. the sellers have to walk away. and i don't see the sellers walking away yet. but today's the day. solarci

solarcity, twitter, facebook, let those be your beta curve. >> you got a big show tonight? >> yes. >> wrapping up a busy week? >> nrg has done the most to profit off of solar power. doing the right thing. david crane is a visionary. he thinks the whole grid is corrupted and that the next generation knows it and will be distributed power. he's the great thinker in the utility section. why there isn't a google or amazon, why there isn't an apple of you'vetili tiutilities. he wants to be that. a very smart guy. princeton. friends of elliott, by the way to throw it out there. >> have a great weekend, jim. see you monday. >> thank you. the ceo of grubhub on his company's wall street debut. up 42%. we're back in a minute. back in t hospitals using electronic health records for more than 30 million patients? or that our software helps over 20 million smartphone users remotely configure e-mail every month? or how about processing nearly $5 billion in electronic toll payments a year?

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company's first day of trading. and getting the grid in shape, opower going public as it aims to make the country's electrical grid smarter and healthier. the ceo will join us live. we do have as we said four ipos, a very busy morning. we've gotten the first trades for grubhub, there's a look at that off of the highs but currently up about 37%. opower priced at $19 and over at the nasdaq we are still waiting for five nine. that priced at $7 below the expected range. still waiting on that first trade. ims health, by the way, the biggest tech ipo this year opened earlier trading higher and as we said grubhub opened higher as well, initially as high as 50% higher. we'll see how the rest of the day treats it. >> and two of the ipo ceos will join us live during the course of the hour, but we start with the job number, nonfarm pay rolls 192,000 last month slightly below estimates and our senior economics reporter steve liesman has more detail. what's fascinating after all of

the debate the job gain that we had last month and the month before is basically what we had in the 12 months to december, no great change overall. >> yeah. we just had the one dip and then you're right, they revised it back. but this is a solid report, simon, that suggest the economy regaining some of the weather related losses and making the bulls look smart. the bears that thought the economy was weakening not looking so pressient these days. a very solid jobs report that has seen payroll growth over the last two months revert to the trend. morgan stanley saying that weather impacts moderated substantially but not completely supporting the improvement job growth and should hours continue to creep higher employers are likely to ramp up their hiring efforts that's a forward-looking component. let's look back. the number was at 8:30192,000 just below the estimate but the revisions make it all seem okay because you added 37,000 other

jobs, unemployment rate 6.7. average hourly wages up and hours worked up 0.2 percent and where are the jobs? education, health care, the places you might expected it. leisure, hospitality and professional and businesser ises up 57,000 and temporary help up 29,000. construction doing pretty well and retail rebounding from a string of losses. want to show you one other aspect the labor force. we've had gains in the labor force for several months. yeah, we do. that's very nice. four -- actually make it five of the last six months we've had people come into the workforce there and that's half a million the last time around. maybe a sign of a better market attracting people. overall the report strong enough to suggest strength and momentum in the economy. i don't think it's strong enough to suggest the fed needs to change its course or its tact here. the taper should continue unchange ed the outlook for the second half of 2014. >> thanks very much, good to see

you, steve. let's look at the market impact right now. stocks are slightly higher right now. they're pretty much mixed if the factor in the nasdaq with the dow up 26 points after that jobs report. let's bring in jim paulson chief investment strategist with wells capital management. jim's been a bull on the u.s. stock market. you think this jobs report was solid enough to keep the rally going? >> i do, sara. i think, you know, the best description to me of this jobs report is it's goldilocks. it wasn't -- wasn't too weak to create fear among stock investors of a weak economy and cause the fed to reconsider its tapering pace. but it was -- also wasn't the too strong that would raise the specter of raising bond yields or increase the conversation about whether the fed has to speed tapering. i think what this means is it's going to put people in the mindset that the economy's accelerated for the rest of this year up towards 3% and i think that's going to mean that the momentum in the stock market keeps upward and will probably break through 1900 on the way to

2000 soon. >> we want to bring in david kelley. david, status quo improvement is the takeaway from jim paulson on this jobs report not enough to move the needle in terms of fed policy, but enough to keep the rally going, you agree? >> yeah, i do. i think this is one of the rare reports which is good for both the bond market and the stock market. i think the most important thing is the growth in the labor force, the backing away of wage growth to suggest the fed has got a little bit more runway. but i think it's important for investors to realize they still don't have enough runway. long-term interest rates are still way too low i believe given the trajectory of the economy. given the fact that we should be back to full employment i think within the next two to three years. so, i think we will see long-term interest rates back up from here even though this report shouldn't be too concerning for the bond market. >> i love the jobs report because there are so many gems in it. but one of them that increasingly it looks like

traders, investors, economists are foe kus cused on is averagey earnings. we're not seeing the wage growth. we're not seeing the wage inflation and therefore the fed has as long as it wants. would you agree with that assessment? >> i think that might become problematic this year to tell you the truth. we did get an outsized 0.4 increase last month, sara, and then it was unchanged this month but when you put the two months together it was -- it wasn't really that weak because you maintain that 0.4 increase last month. we're running 2.1, 2.2. i think wage numbers year on year if they get above 2.5% towards 3% that will get a lot of attention from the bond market and it will get more attention from the fed. and i just think that with unemployment if it starts moving below 6.5% and we get a wage report which puts us 2.5% to 3%, you're going to start to increase the panic a little bit about inflationary and whether

the fed has to speed. i think that might be an issue yet before the year's out. >> do you know, david, we should credit you, you were the first to come out really clearly a couple of months ago, certainly this year and say you thought maybe the fed was behind the curve and subsequently and that it would have to more rapidly move and subsequently to that yellen came out and said, you know, maybe we'd have rates rising by the spring of next year and we all know what's happened subsequent to that. that said, that, that you were out ahead of the curve, that you informed us of what the cutting edge of thought was, how can you still say that the fed is in that position when the wage growth is just the same as we had all of last year? this isn't really an accelerating picture. there's no snapback from the poor figures we had at the heart of winter. >> no, i think -- there is -- there is a technical issue with regard to wage growth when you got very bad weather in a given month and i think that caused a spike last month and we got a little bit of a payback here. what we are seeing is a labor market that is still tightening and my biggest problem is you

have to assume a much diminished pace of unemployment decline over the next two years to actually hit the fed's targets. i think the unemployment will come down faster than they think and there's a very strong statistical relationship between the unemployment rate and wage growth. we are running out of competent workers in this country. as there's a scramble to get those competent workers, wages will get pushed up. it's pretty much an iron law of economics as that unemployment rate comes down the wage rate will tick up. i think we're definitely on that trend and that's eventually going to force long-term interest rates higher than they are now. >> jim, there's been a lot of charts trying to overlay the last 84 or so with the events leading up to 1987. i know you've weighed in on some of that. >> yeah. >> when you look at multiples, how much in danger are we of not just a correction but a violent one? >> well, the multiples in '87 when we went up 40% in the first nine months of that year from

1900 to 2700 on the dow, the multiples peaked out at 2700 at exactly 20 times earnings. so, we're quite a ways from that. we're probably sitting more, like, 17. if we make a run, then that could be interest. i think there's been a lot of similarity from the get-go in these two bull markets because both, carl, were initiated ed and 2009 and they climbed wall of worries and in 1987 it changed to acceptance of a recovery and we're starting to accept this recovery now. so, i think there is some rhyming going on between the two cycles. i don't think we're going to have a severe a collapse. i just don't see that. but could we get a correction maybe later this year orrer in the following year? and a similar period where as david suggests that we start worrying a little about wage inflation, i think that's possible and it could come right on schedule with what happened in 1987. >> all right.

thanks, gentlemen. so far, i mean, 0.2 percent average hourly earnings we aren't seeing it much. we'll have to wait to see. thank you very much. dow's up 33. let's get over to dominick chu and get our first market flash of the day. hey, dom. >> hey, carl. up even more is mylan, it's up 12% in the premarket up 6% in the regular trade so far. it made a bid for swedic drugmaker meta that would have created a $24 billion generic drug behemoth but the offer was rejected and mylan lost half the gains, but it's the lead gainer in the s&p 500 up about 6.5%, carl, back over to you. >> dom, thanks a lot. when we come back, the debate over high frequency trading. it's been going on all week long and getting more heated today. the department of justice now investigating it. there's eric holder trying to determine whether it violates insider trading laughs. jim stewart of "the new york times" will join us live to weigh in. and later the ipo parade

continues today. grubhub, of course, causing quite a stir over at post five. the ceo is going to join us live here at post nine a little bit later on. ...for the year. hi. sorry. just want to say, i bundled home and auto with state farm, saved 760 bucks. love this guy. so sorry. okay, does it bother anybody else that the mime is talking? frrreeeeaky! [ male announcer ] savings worth talking about. state farm. e frrreeeeaky! financial noise financial noise financial noise financial noise anybody have occasional constipation, diarrhea, gas, bloating? one phillips' colon health probiotic cap each day

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the debate offer high frequency trading rages on. eric holder disclosed an investigation in to high frequency trading and the hearing there you can see on capitol hill continues. joining us here in the meantime james stewart, pulitzer prize-winning columnist at "the new york times."

good morning. >> good morning. good to be here. >> how far do you think this will go? >> it's fascinating to find out. i have to hand it to michael lewis and his bock, he put a spotlight on it. it's not a new issue. journalists have been all over it. the s.e.c. has been looking in to it. it's a very complex subject. i think making criminal charges out of this will be difficult but i welcome the investigation. you have people making apparently millions if not billions of dollars with no risk. that is not the market that we expect. >> your colleagues, your rivallings at the "financial times" point out the debate is four or five years old and the height of the crisis when the markets were liquid you could make a lot of money doing what they do, maybe $7 billion, $8 billion a year and now they are possibly making $1 billion they've moved away from the u.s. stock market. this isn't as hot an issue here on this floor as it was. >> i think that's right. and i think, you know, the argument, the counterargument here is there's an immense amount of liquidity that has been brought to bear and has narrowed the spread and has been a good thing for investors and,

you know, the fact that they're making some money is to be expected in that sort of environment. i think the investigation is needed. the flash crash anniversary is coming up in may or june, very soon. the fourth anniversary. we still don't understand what happened there. and i find that very, very frustrating as a journalist and an investor. >> how similar is this conversation to the one we had about the early release of data by, for example, thompson reuters which you did a lot of work on at the time? >> yes. >> harvey pitts said it's important to have a level playing field but people need financial incentives to dig up information. it helps the marketplace. in other words, it shouldn't be totally level. there's a similarity here, isn't there? >> there is a similarity here. and i think it's going to require some policy decisions about what kind of information is in some kind of public domain that everyone should have access to. stock prices generally have been considered to be sort of a commodity that all investors should get at the same time. that hasn't been happening here. these milliseconds and maybe it needs to be thought through. but that may be a subject for

regulation. it's hard for me to say on the face of it that it's a crime when it has never really been -- no one's really had any roadmap for how to handle it. >> a lot of the algo writers are triing to put out a defense how is it illegal for me to write better code than you? >> exactly. what do we want to discourage and encourage and what are the broader costs around it. it does need thorough investigation. i hope it's been getting and i hope it will get more now, so i welcome the investigations but i'm very cautious about saying now, oh, my god, this is a crime we should be throwing people in jail. >> on the regulatory front, the book refers to the flash crash and the fact they were talking about minutes and seconds that regulators didn't even seem to have adjusted their timeline to milliseconds not to mention a millionth of a second the way these things are actually happening to your point where they really couldn't even understand what actually was going on. >> he doesn't really go into that but if you've read the

s.e.c. report on that, it is completely unsatisfying. it does not answer the question of what really happened and who is responsible. and i've always felt that's been a glaring hole in the regulatory approach to this whole thing, and i would love to see some definitive answers there and that might suggest some regulation. i think we've got to start with the facts and then see is regulation and possibly prosecution called for. >> given the fact that this debate has been renewed this week just over the last seven days, really, since he appeared on "60 minutes," michael lewis, the author, do you think that there is a credibility lost in the markets and part of the retail investor? do uf think thyou think the tru? >> i haven't seen much of that. i've talked to a lot of investo investors, but one of the problems from an investor point of view on an individual trade we're talking maybe a penny or a half of a penny or something smaller which is smaller than they were paying under the old system, so i don't know, you know, i don't even pick up a penny on the sidewalk. >> i think is a really important

point to make because to people sitting at home it looks like the market is broken and the market is not broken. it's a safer market than it ever was before, jim. ever. >> absolutely. i don't think we should miss the forest for the trees here and try to maintain fairness, i think a measured approach will be called for. >> i know you can't talk about the way lewis constructed the book -- >> because i reviewed it. i'll talk about it next week. i have a lot to say. >> but having written books that would be like this, is there anything right or wrong with his methodology or approach? >> i'll save that until next week. >> what's the column for this sunday going to be on? >> the crisis in law schools and not just law schools but higher education generally, law school applications are slucmping. there are way too many law schools and they are starting to lo and behold academia cut the price of tuition. unheard of in higher education.

and i think this is a really important trend. sit going to work? will it spread? it means cutting down on merit aid. it has very biggismplications but the law schools are the canaries in the coal mine. >> are they changing the promise that you can have a good job at the end? >> they can't do. about that with law firms not hiring the way they were. they're doing what they can but they can lower the cost side and i think it's an encouraging sign, they are actually starting to respond as any business would in a similar situation. >> great to see you. james stewart joining us there from "the new york times." up next grubhub trading higher in its stock debut. up 57%. but does it have a recipe for future success? the company's ceo will be joining us to talk about the business when we come back. in a world that's changing faster than ever,

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grubhub shares on the rise after debuting on the big board today. priced at $26 above the expected range and have traded just south of 40 for a few minutes here. matt maloney joins us at post nine for a first on cnbc interview. congratulations, good to have you. >> thank you. thank you very much. >> we've seen hits and misses on new issues the past couple of weeks. you've got to feel good about this one. >> we are really excited. great to be trading on the nyse. >> insider sales down the road, the whole bit. >> it's a huge milestone for the company but there's $70 billion annually in takeout spend in the u.s. and of that 3% is placed online any way. so really what we're doing is try to accelerate the inevitable offline to online conversion of pickup and delivery ordering, that's what we're all about. >> the big part of your story is the merger with seamless taking

over grubhub and seamless. how is it going in terms of bringing the two together? i mentioned that there are better restaurants at least in my neighborhood on seamless. how are you integrating that? >> the integration has been incredib incredible. the cultures have meshed wonderfully. the individuals are phenomenal to work with. in terms of the restaurants, we're actively integrating the restaurants themselves so that the restaurants are available on either of our brands our identical, but in terms of everything else it's been spectacular. >> but you siteve cited it as a risk factor in terms of bringing them together, so what are the potential risks in doing that? >> i think we're through almost all of the integration, really there's just a technical integration that we're executing right now. but from an organizational perspective, a product perspective, a data perspective, from a service perspective, "a," "b," "c," "d," "e," we're integrated into one strong company that's why we were able to list as soon as after the close of our merger late last

year. >> the restaurants are doing all the work and paying you and i can see it's average ten per of the order is what they pay you in fees for you to basically put their menus online and to transmit the order. you know that. there will be people that will come into the space presumably that will do it more cheaply and then you're going to be on the run. i mean, you have a great first mover advantage, but did how long did groupon stay as groupon? >> we've got tremendous value to restaurants and diners as it grow. on the diners' side it's free and easy to order. ordering through your as a matter of factphone and an app is much, much better than calling it in from a paper menu and from the restaurant side there really aren't very many options for the restaurants to build their takeout business. >> for now. but there's bound to be movers in this space, aren't there? there's bound to be other people that offer a cloud application. >> remember, it's a two-sided network that gets stronger over time and as we continue to innovate. we've been fundamentally, we've

defined the industry for the past ten years we integrate aggressively and we give the restaurants tablets, for example, to make them more effective at what they do and we're able to provide real-time updates for diners so you know when your food's done being prepared, when it's out the door and when it's almost at your house, so it's innovations like that which define grubhub and seamless and we're aggressively continuing to grow business on the restaurants' behalf. >> i want to take this in a somewhat different direction. recently carl icahn has talked a great deal about the presence of venture capitalists on public company boards. bill gurley is on your board of directors from benchmark. they also own a lot of yelp which i assume is a competitor to yours. peter fenton is on the board of yelp. why should i feel comfortable with having bill gurley on your board when benchmark also owns yelp? >> bill gurley is an incredible asset to the country and he's a smart guy. in terms of yelp and grubhub i would look at them differently. >> why?

>> i would say yelp is more like a trip adviser really broad and narrow. a lotnovations on the web side. we're here for the transaction. everything that we do is about that transaction and making -- reducing the frictions, the transaction costs and increasing flexibility and transparency for diners ultimately and by addressing everything on this transaction we see our business grow tremendously over time. we own this space. >> having a yelp review and/or the number of the restaurant in my neighborhood and making a phone call to have it delivered. >> yelp could be a tremendous affiliate partner of ours. i don't see yelp actually owning this space or really wanting to. >> people might associate you with a mom and pop restaurant or maybe a small chain in the city. >> absolutely. >> what's the likelihood of an olive garden forging a national deal with you, something like that? >> sure. we have almost 30,000 independent restaurants across the country in 600 cities and they are all mom and pop shops. one and two-man operations.

we processed over a billion dollar of food sales last year and going to mom and pop operations is tremendous for this industry. we also have many franchisees that are on the platform. they are paying their franchise fees as well as the grubhub marketing and technology fees in addition because they see the incremental value of being listed on our platform. because we can drive so much business for them. >> right. but you don't see it happening on a corporate level or doing all company stores in a one-shot deal. >> we're having lots of conversations. we have defined this industry. we are the innovator. we're growing incredibly rapidly. we're a publicly listed company. there's lots of conversations in that direction. we'll see where it goes. >> that's a dancing pizza behind you. >> absolutely. >> you are used to that. >> that's how we roll. >> thanks for coming in. >> thank you very much. >> matt maloney the ceo of grubhub and a nice first-day gain. we know that the economy generated 192,000 jobs last month. what does that mean for the market? what does it mean for monetary policy? a view from the floor when we return. . so ally bank has a raise your rate cd

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alleging shareholders' ownership of the company is being diluted too much and he's calling for the chairman and ceo roles to be split. coke came on cnbc to defend itself -- >> the real dilution over the last three years has been less than 1% a year and we expect it to be in that range going forward. this plan actually is very much in line with the plans that we have put forward to share owners in the past and that have share owner approval. >> well, that didn't apiece mr. winters who also came on cnbc to respond. have a listen -- >> now, the buyback program has been hijacked by the company. it was originally put in place to benefit all shareholders. there's an awful lot of money being transferred from the shareholders' pockets to management of a company that's not growing very fast. it's just not right. we think it's wrong. >> as you can see both sides really digging in their heels. a war of words really playing out in the spotlight. both coming on cnbc to voice

their opinions ahead of the april 23rd annual meetings where shareholders will be asked to vote on this 2014 equity plan which includes the executive compensation. the fact here is the numbers are up for debate. mr. winters is citing the numbers from the proxy. coke's response is that there are a lot of factors that go into that and it's just a hypothetical number. it's an interesting point. obviously executive compensation always gets shareholders riled up. coca-cola, though, not exactly used this kind of public forum on being questioned by one of its investors who, by the way, says he's in the stock for the long haul. >> it's interesting that they did choose to show up and interview with you yesterday to defend themselves, you know. see what happens. at the meeting it's unclear to me what's your sense in terms of where this thing's going at this point, sara, i haven't been focused on it but you have been talking to a number of investors. >> it will be hard for them to go against coca-cola and even

david winters himself says he talks to investors and hard to way them in his direction. and warren buffett not speaking. i asked both coke and mr. winters if they spoke to him. >> the counsel says the dilution on this scheme is 1% a year, will be 1% a year and there's legal binding in saying that. around what they've had in previous years whereas the figure he was citing was 14%. so, that qualification from coke's management will be very important to a lot of people. >> and it really speaks to the fact that coke is putting its head of corporate governance out on this issue on television because it stands behind its numbers and the fact that this is really within the industry norm. should be interesting because it's an ongoing debate >> in a few weeks we'll get the vote. let's bring in ben willis from princeton securities group and joins us a this morning at post nine. good morning. >> good morning. >> we were talking before how yesterday's high felt wobbly. feel better today? >> i think what we're seeing is

the correction in the maetplace oddly enough that we've all been looking for is actually happening as you see money coming out of the high beta stocks and finding its way in the value stocks and the like, the s&p 1000 play, the etf money flows. i think there's actually a pretty good market on this. i have been long-term bullish by the end of the year looking for a correction of 5% to 10%. never really got it. maybe we're actually getting it on a rolling correction rather than a traditional sweep down. >> he said as the nasdaq was the only of the majors in the red today, right? >> right. >> that story's not done. >> absolutely not. you will see a continuation of asset flows. the fact of the matter is money still needs to come out of the mattress of the money funds that are sitting on the sidelines. u.s. equities is an asset class or underowned by the american investor. if they want to retire on time, they're going to need to do that. >> hang on. not by historical average are they underowned at the moment. that's a judgment you are making about the need to save more for

your retirements. >> yes, right. >> a lot of people are very concerned about the second half of the year here. you hear it time and time again. there will be an intersection of monetary policy tightening and a question mark over what growth we have and people talk about the possibility of a major correction at that point. and we heard that again in this half hour from both of the guests that were on discussing the markets. are you concerned about it? >> my position from several months now has been the correction will come as a function, as a reaction to central bank action. >> right. >> most likely the fed. however, we see what's going on. we see the effect at the peoples bank of china is having in controlling their economy and the dampening of that economy which is now having a macro effect in the world. that will be i think the biggest thing. >> i want to make one important point that we've not made in this hour. today many people will have woken up to the headline that the spanish government can borrow more cheaply than the u.s. treasury can on five-year paper because the rally in the bond market in europe has been so strong and the european central bank is now verbally

intervening to say they will go in to potentially quantitative easing. what does it mean for people sitting here? is it irrelevant? >> identi think it is. people have to put it innen could text and it goes back to the central bank and the whole conversation of expectation and jawboning by draghi and the people in the european union on the attempt to bail out a situation that has been stuck in the mud so to speak and whether or not it will continue. the fact of the matter the leadership of the world economy will have to come from the united states central bank and china in my opinion. >> the ten-year treasury yield at 274, that's not a signal of imminent tightening any time soon. abo >> where it has come from in the history of the ultimate easing and the taper of 1.5% i think it's well on its way to the 3% level. again, this is -- the question of whether the money will eventually come out of the asset classes that are seeking that yield and safety and find its way back into the stock market and value. >> last question. a lot of these high fliers are

back to their 200 day. when does selling stop? when it gets to those numbers or you have no gains year over year, how much is enough? >> i think the professional investor in the high-flying stocks, you saw the money come off the table and deleveraging itself and keeping an eye on the margin positions as quoted by the new york stock exchange, but i think overall it doesn't mean the 200 day is a ceiling. i think the markets can eventually roll higher. we're just seeing that roll of the market so to speak into other areas doesn't mean those stocks are dead. >> ben, thanks a lot. have a good weekend. let's get over to dominick chu and get a market flash. >> check out halizime therapeutics, it said it was temporarily halting a midstage trial of its pancreatic cancer drug for safety concerns. the stock is a market cap of a billion dollars it's trading eight times its normal volumes and down 25% so far on the session, carl. back over to you. >> all right, dom, thanks a lot. when we come back it's the

fitbit for the country's electrical grid. of the opower trading higher after its debut. how will it lower your energy bills and compete with google's nest? the ceo and founder will join us next. next. big... then expanded? ♪ or their new product tanked? ♪ or not? what if they embrace new technology instead? ♪ imagine a company's future with the future of trading. company profile. a research tool on thinkorswim. from td ameritrade.

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we look to the cloud for the next guest on the heel of the company's trading debut earlier this morning, opower leverages big data towards reducing energy consumption going public on the nyse and sharply higher as you can see. daniel yates joins us, the ceo of opower. good morning. >> good morning. >> we'll come to the pricing and the moves in a minute but people should understand that supporters would say there's a revolution under way in software in the energy industry. can you explain what you do? >> opower is a cloud software platform and we help our utility partners to transform the way they're communicating with their consumers. and the exciting thing about our

market, the utility industry is a $2.2 trillion one of the largest on earth and it is undergoing a radical transformation. for all of our lifetimes utilities have been the protected regulated entities with no competition and now they are being disrupted by solar rooftop providers and they have to comply with new environmental mandates and they have to communicate with their customers and that's what we do. >> they are mandated to reduce power consumption overtime but they are your customers clearly. you go to the utility and say you want access to the customer base. you, then, send almost like a video game, reports to people with smiley faces as to whether their energy consumption is higher or lower than, say, their neighbor's. a trojan horse for you to then sell them other things further down the line. >> that's exactly right. so what we do is we help the utility take all of the data that they have and they have a tremendous amount of data. today we take in hundreds of billions of rows of meter data. we bring in housing and

demographic and weather and all this data to help them understand the consumers and we change every one of their interfaces, the website, their mobile application the e-mails, the automated calls, the mailed reports, the call center. we help them make all of those touch points data rich. we give people information like how your energy use compares to your neighbor's. we give people targeted recommendations. >> it sounds a little bit like google's nest in terms of that smart technology. are they a competitors of yours? >> google's nest? >> we don't compete with them. it's a hardware-based solution sold to consumers and we're a software platform that we sell to utilities, so we don't see much competition. >> people have the vision of the utility a dine sore, not efficient, not friendly. when you first go to the guys do you feel like you have to teach them to walk before they can run? >> absolutely not. it has been in the last ten years a huge transition in the utility industry. there are -- when we started our company there were almost zero chief customer officer.

now there are dozens and dozens. they are held back by their technology. but the people are there and the passion is there. >> what about regional concentration? are you in the northeast? are you in the southeast? where are you mostly? >> so, we're all over the states now. we're in 30 different states across the country. we're in eight countries across the world. >> what would you consider your key competitive advantage, then, over those that would seek to compete with you? >> i would highlight a couple key things. fir first we've built a very substantial technology plat form that's just far ahead of everybody else, seven years into this. as the utility clients come to us they are excited about the broad array of capabilities we have. the second thing i would highlight, we have this huge data asset. we have more data under management than anybody. we have over 52 million consumers worth of energy data and so we're just learning faster than everybody. >> we're out of time, but i just want to get to the numbers if i can. you are still making a loss. your net losses grew to $14 million.

however, this pricing and this rally at the open i believe your personal wealth as a founder is $126 million. i mean, talk to me about the pricing and the process that you've been through. >> yeah. so, it's been a thrilling day for us. i think different from a lot of the other cloud software companies that you may see in the market, we have already proven the model. we've proven our ability to deliver more cash back to the business than we consume and the fact that we're investing -- >> but you're making a loss of $14 million. >> we will be making a loss this year. we were actually cash flow break even last year. so, we've chosen today to invest further in the company because of the big opportunity. >> one last question, 52 million different people you have. >> yeah. >> how inefficient are we in this country, then, in terms of our energy use? >> i think that's the big opportunity, right? when alex and i, my co-founder and i, started the company, we said there's so many prius drivers out there with humvee houses and we need to help them get better information to understand how to change their usage. we can easily save 10%, 20% on

our usage. a lot of folks estimate that over 40% of energy is wasted. >> yeah. >> well, if we keep having winters like the past one, you'll get people on board with that. >> you know, for a long time people thought the brightest minds would go into energy technology and they went into social media. maybe that's changing. >> we hope so. >> i hope so. >> we hope so. >> good to see you, daniel yates the ceo of opower. the chairman of the economic advisers, ed lazear will be joining us on his take on today's jobs numbers.

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what a morning it's been with the jobs number. rick santelli is going of tackle that in the "santelli exchange." >> indeed. i'd like to welcome our guest former chief economic adviser to president george w. bush. welcome, ed lazir. >> nice to be with you. thanks, rick. >> thank you. listen, the gentleman who has your job currently, jason furman, was on "squawk on the street" earlier today. regarding the jobs report, here's what he had to say. and i want to you to listen to both of these. i think this is consistent with the steady, solid recovery we've had.

and then when asked about what's the fate of legislation regarding extending jobless benefits he said, the long-term unemployment rate is still our biggest cyclical economic challenge. it's twice what it was on average before the great recession began. all right. let me get this straight. it's like that old commercial, tastes great, less filling. how are jobs? tastes great. how are benefits? need more. it seems as though the sweet spot is not a sweet spot for the middle class. it's not a sweet spot for the economy. it's a sweet spot that we see ongoing still kind of crisis mode programs ongoing. even though we still tap our hat that we're growing jobs, and plus the word cyclical bugs me. let's put in structural. comment on all that, ed. >> that's quite a list, rick. let me start with the jobs report. i think this jobs report was stronger than the last morngts primarily for two reasons.

one, i like to focus on hours worked and hours worked did go up. average weekly hours went up considerably. that's something to take into account. the second thing is the employment to population ratio which is a number i like to look at. also went up. both of those are indicators that things are better this month than you were thast month. that said, we're still a long way from a strong recovery. hours of work with backed up -- back up but they're back up to where we were last summer. the employment to population ratio is up but it's up to where we were in march of 2009. so we still have a long way to go. this has not been a strong recovery. we still are in trouble. now, the question i think that you raised in terms of unemployment benefits, what you were driving at is what are the incentive effects of those kinds of programs. we know that when you have high unemployment even though they are adverse incentive effects we're sometimes willing to tolerate them because people are hurting. when should we stop that? what we have to do right now is

focus on the future. i keep saying that what the administration has done is they've focused way too much on the short run, not enough on the long run. growth rates are still in the low 2s. we need to move our growth rate considerably above that. i think by moving to a better incentive structure we can get there. >> what you described, eds, is short-term focus, election cycle to election cycle, election cycle. i get that. as a matter of fact, let's take that a step farther. mr. campos, ways and means committee chairman is going to be leaving his office. probably a bit burnt out working on tax policy nobody is going to use. last piece legislation is to propose a 40-hour workweek to replace the 30-hour in the affordable care act. can you explain how democrats are saying fix it, repeat it. nobody allows fixes. the president said he would veto that. does that make sense to you? >> i don't know if the specifics makes sense. one thing i would return to you though is the issue of incentives. we know when you have

legislation that exempts people who work below a certain number of hours or exempt firms that have below a certain number of employees you have big effects on the number of employees the firm retains and on the number of hours worked. >> almost out of time, ed. make it more simple for me and viewers. >> okay. >> if you are the king, would you have a 40-hour week because it would make more job sense or keep it at 30 so more people are included towards the insurance programs. what would your call be? >> i don't like putting caps on anything. i think that creates adverse incentives. i like a more neutral kind of structure. i think that's the direction in which i would go. i think the affordable care act has way too many conditions associated with it that create all kinds of distortions in the labor market. i would say repeal it and go with something new. in fact, i like what we proposed in 2007. i wish we would go back to it. >> i got you. there's a lot of things that 2007 i think the country wishes they could go back to. have a terrific weekend.

next time in chicago i'll bayou a big high cholesterol lunch. thanks for taking the time. simon hobbs, back to you. >> thank you, rick. in the meantime, sarah wants to check on ipo. >> looks likes 5-9s has opened for trading. up 18%. that following a run, a string of successful ipos we've seen here at the new york stock exchange this morning. five9, a computer-based cloud software provider. >> call centers. >> higher. >> the expected range was 9 to 11. priced at 7 awe bbut traded bac coming up, kara swisher will talk about today's wave of tech ip okays including five9 and almost an side look at her own cameo in hbo's new show "silicon valley.valley . you make a great team. it's been that way since the day you met. but your erectile dysfunction - it could be a question of blood flow.

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so finally we know the march employment report shows 192,000 non-farm jobs were added in the economy last month. did you nail the number all week long? we've asked you to tweet us your predictions and one lucky winner will receive that wireless speaker autographed by the

entire "squawk on the street" gang in the next hour of the program. >> 192,000. pretty much on par. i bet we've got winners in this one. >> apparently somebody -- apparently the winner is actually a professional wall street person. >> the average consensus from economists was just below 200,000. so not too far off from that. carl? >> the game theory would suggest that people like to guess away from consensus, so i wonder if anyone actually didn't nail the number this month but we'll find out. you guys have a great weekend. if you're just joining us this morning, here's what you missed earlier on. welcome to "squawk on the street." here's what's happened so far. >> march nonfarm payrolls increased by 192,000 jobs. the unemployment rate is 6.7%. we are overtaxed by deals. and i think if i don't sit here and say it i lived through 2000 and it is just -- just don't

want it to happen again. >> there's the opening bell. >> is 1912 satisfactory in the white house's view? >> i think this is consistent with the study solid recovery we've had. >> we're able to provide realtime updates for diners so you know when your food is done being prepared, when it's out the door, and when it's almost at your house. so it's innovations like that define it and we're aggressively continuing to grow business. >> it is 11:00 a.m. on this jobs friday on the east coast. 8:00 a.m. out west. here's what we're watching for you this morning. investors hungry for grubhub. rallying on the nyse debut but should you be making an order on day one. ? google's acquisition in hot water after serious technical problems. we're going to tell you what's going on. the business of marijuana

fuming in california and now the business of hemp may not be far behind. the industry that's riding the wave of legal pot out west. the u.s. economy adding 192,000 jobs in march, did you nail the number? this month's nail the number winner will join us later on this hour. joining us this morning for the squawk feed kara swisher, coexecutive editor at re/code along with jon steinberg, buzzfeed president and ceo and our own jon fortt here as well. good morning. >> hi. >> let's start with the big ipo of the morning. grubhub, that's intraday as the stock opened just north of 40. now settling down to 37.79. interesting story. we talked to the ceo in the last hour and he talked about the acquisition of seamless and how it helped his company. take a listen. >> integration has been incredible. cultures have meshed wonderfully. the individuals are pen nominal to work with. in terms of the restaurants, we're actively integrating the

restaurants themselves so that the restaurant's available on either of our brands are identic identical. >> there were nice visuals of grubhub here at the nyse. people dressed as pizzas and sandwich wraps. the ceo, look at the opening bell as they were on the balcony. also tweeted seamless tweeted we've run a lot of bells in our day but this was the biggest one. jon, your thoughts on what that means for them and the ipo picture at large. >> it's rare you get a european preview the day before. justeat went public. priced at 15 times revenue. and in grubhub raised their offering price to 15 times revenue. exactly in lock step. it opened at $3 billion. now 3 billion stock. it's pricey. expensive for what it is. 40% organic growth. but still, you know, lofty. >> jon? >> well, i'll say first of all, king stock, candy crush makers, trading up 20 bucks a share.

but there is an element of the candy crush issue, i think, with grubhub in the sense that a lot of the revenue growth that they've seen between 2011 and 2013 might be attributable to the boom in smartphones and the growth they got off their app. it's not just their brilliant business sense. it's also that along with the seamless acquisition. it's hard to tell where growth comes from. they've got to compete with just -- if they want to go overseas and whatever he sells. ye yelp is a competitor. it's sending orders and, by the way, opentable could get into this space, too. >> benchmark as an investor as well. you have to believe this is going to be the uber for local everything. to kind of justify this level of price and acceptance. >> he did try to argue that yelp is not the competitor that jon suggests it is. kara where is your head on this? can they roll up mom and pops indefinitely or do you need a

big deal with darden or mcdonald's? >> i think it's a food delivery ipo. it seems small to me. i think these things -- i think it's going to bump along, you know, it's very open table but smaller and it's a sort of a hand -- it's a local battle to get everybody in. and there are so many players in this space. i don't know. i think it's very difficult. it's a very difficult business. good for them. >> they've been quiz tive and they say in s1 they will continue to be, probably using stock. jon, how much of a liability is that? >> i think what's a challenge is that some of their most effective competition is around their size. i mean, their valuation i think is $3 billion now with where it's trade right now. opentable is around 2. yelp is the biggest in the space with $6 billion valuation. acquiring anything sizable is going to be tough. maybe they can do some little stuff. e-24, stuff overseas. but, you know, maybe it's a bigger name that ends up rolling up. i think there's value in the local intelligence that they get going home to home. knowing what people's habits

are. you will see. >> opentable is a stock that's never had the growth that live up to what people want. when you look at it it's trading at 9 1/2 times revenue. we're basically now at 21 times for grubhub. a double at this point. >> next up this morning, mozilla ceo stepping down after his outrage to donation for same-sex marriage campaign. supporti supporti supporti supporti supporti supporti supporting ban on this. kara, what's been the reaction out west on this? he did not last long. >> no, he didn't. you know, we broke that story of him leaving. i think it was just an issue of the mozilla community is, oh talked about tolerance and inclusiveness and he wanted to extend it to his viewpoint. the tech community is mer i would say very supportive of gay

rights. there's an outcry, the grope there, too much for him to be ceo and carry this with him throughout. it would stick with him. it became an untenable situation for the product which already faces challenges all over the place. >> i was going ask you what's the impact on the mozilla itself as his departure? >> obviously there's going to be a technical impact and he, you know, a t lot of people didn't want him to be ceo. i think the difference is when you move -- even though they knew about the donation before, when you move from cto to ceo there's a per acceptable difference that you're the face of the company. that's not the face they wanted to have. >> jon, your thoughts on this one? >> i'm uncomfortable with the way this went down. i really didn't like voted in california, voted against it. i'm a christian so i'm curious what his reasoning was for doing what he did, make that $1,000 donation, was it just he didn't want gay rights, was it something about a traditional view of marriage?

he didn't help himself but not thoroughly explaining his position. but the fact that there was nuance here, i just wonder how many different litmus test issues are there? i know plenty of people in california, friends of mine who have strong religious beliefs who are in favor of prop 8. i'm not sure it's healthy to have a litmus test without further exploration they're excluded from being ceos of certain org certain organizations. >> this isn't a litmus test. if he had made an anti-woman group donation, a racist donation, you know what i mean, a group known for racism or very strong that way, it would have been two seconds he would have been out. >> that's what i'm saying. i'm not sure this was about not being for gay rights or his own personal view about what marriage is. he didn't explain it. he didn't help himself. >> he did not explain it. he also gave a series of interviews that were kind of crazy. like in terms of he somehow brought in the indonesians and

how we should accept it because indonesians were against gay marriage. it got strange. i think mozilla has a particular community and the community spoke to people in charge and felt like he was going to be -- this was going to focus on him the entire time. i think this is probably the biggest issue is the controversy. >> the direction of the country is going in. that's for sure. at least california. finally, nest lab is the maker of smart appliances that google bought for $3 billion. calling a halt to all sells of smoke alarms. it's discovered a possible defect to cause users to turn off smoke alarms unintentionally. the alarm has a wave feature that lets you turn it off with the wave of a hand. nest is saying this feature could be activated by accident. live by technology. >> i love the quote. a unique combination -- a unique combination of circumstances could lead to an inadvertent

deactivation. so it sounds like you've got to be waving and twirling and chasing a bird out of your house for this to happen. >> or have kids. >> but i think it's very up front that he came out. these high-tech companies get so much more heat for defects. when you look at what tesla went through when it was such a rare set of circumstances to cause battery problems, i think they came out, admitted it. they are sending out a software fix. you know, so i think they're doing everything right here. >> i think here the software saved the day. the fact they're able to disable the wave feature through the internet, buy time to figure out what to do here p. seems like worst case scenario, kill that feature all together. all is okay. it's not like it's a bug, they don't have to do a recall. smart engineering. >> does it have any impact on the perception of google's purchase? >> absolutely. thank god it happened after they sold the company. it would have been a way to negotiate down the price or put -- when you're dealing in safety type devices the level of scrutiny is so much higher than just entertainment.

>> i know tony fidel was just named tech quarter of the quarter by "usa today." what is his reputation out there? >> fantastic. a creator of the ipod. creative and interesting. a lot of people feel like he's one of the visionaries around. it is just one of these things. you have the internet of things and things break and things. they fixed it and they will move along. i don't think it would have had any impact on the google purchase whatsoever. >> the base case of your regular smoke alarm is it's broken and not working. >> it's always broken. >> yeah. >> it would have been worst if customers had discovered this issue. the fact that nest discovered it himself. >> 100%. >> it's a blip. the show on hbo "silicon valley" premiers this weekend. the premier has a few celebrity cameos. google's ceo gary schmidt and re/code's own kara swisher. we have a picture you shared with us of you onset. >> yes. >> this is getting, i would say, rave reviews. >> it's good.

it's a good smhow. i have a face for radio but it was fun to do that. love mike judge and i think he's done a great job doing a mocking -- a very depth mocking of silicon valley that deserves it for a long time now. it's funny. it's just funny. that's what's important. >> is he moving in on your turf here though? >> i'm fine with it. >> are you okay with that? >> imperfectly fine. everybody deserves a little poking, jon. >> how did you and eric know that it was going to be good? if you lended yourself to a bad show, how did you know in advance it's going to be good? >> it's mike judge. >> fair enough. >> it's mike judge. >> i tell you one thing, the parallels between hollywood now and silicon valley, i love this story line, apparently someone goes to the doctor, kara, and the doctor tries to pitch him his app concept. that's what's essentially going on in california. >> that's what happens to me. >> it happens to me all the time. >> finally, kara, you had a party last night i think for re/code. >> yes, we did. >> a launch party. yet, you were totally coherent

this morning. >> i am still drunk. no, i'm kidding. i don't drink at all. no, it was fun. it was great. it was a great party. we were trying to say thank you to people here in silicon valley and just have -- we like to have a good time at re/code. >> that's for sure. you do set the tone on that one, kara. >> yeah. >> thanks so much for being with us. take another look here at grubhub today as we said earlier, rollying after going public this morning. so you know what grubhub is doing but how have this rest of the ipos faired so far? winner rs an losers. jon is going to stick around for the rest of the hour. kara, see you next week. rick santelli with the dow now negative, what are you watching today? >> i'm watching the curve. we're going to continue to dig down on the yield curve. we thought it would steepen no matter what the number came out to be. and it did. so we're going to talk about fed implications on the curve as well. so the feddi isdish swerves on yield curve. yield curve.

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♪ mattress discounters welcome back to "squawk on the street." i'm scott wapner. more now between dan loeb and sotheby's as dan loeb is striking back, going on the offensive. one again, about a month now before the annual meeting urging sotheby's voters to vote for his slate of the directors, harry wilson and a gentleman by the

name of olivia ressa. in a letter sent today he says, our nominees will reinvig rate the board of directors and bring a fresh perspective and criticizing sotheby's board saying they have no skin in the game. owning less than 1% of the company. also says sotheby's now is the board is overly focussed on short-term metrics in mr. loeb's words. he wants them to be more aggressive in the way they monetize their intellectual property. we've had a lot of growth. loeb saying that growth has come from market tail winds. not anything specifically that sotheby's itself has done here. he also goes on to say that they lack innovation and creativity at a senior level. and what's really interesting here is you remember yesterday, jim was on "squawk box" saying that the art market was in a bubble. certainly parts of it he thought were in a bubble, that he was short sotheby's shares as a

result of that. well, mr. loeb telling me on the phone a short time ago that while i like and respect jim, i disagree with him on that issue. he says chanos doesn't understand the scarcity factor in museum quality art. they are no longer being created. he agrees there are incredibly high prices being paid for artworks by young artists. he does like the art market to hampton's beachfront real estate saying that jim owns a home on the beach. he should understand a scarcity issue as it relates to beachfront property much like it does to the art market. so that's where we are about a month out now from the sotheby's annual meeting. loeb urging shareholders to vote for his slate. sotheby's urging shareholders to vote for it. it has already gone to court. loeb has sued in delaware court saying the poison pill should not have been implemented.

getting more contentious. loeb firing the latest though. dow is now down 13. let's get to rick santelli and the santelli exchange. rick? >> thanks, carl. of course we have the jobs report today. 192,000 wasn't bad. sorry i was 3,000 off at 189. what we notice though was the curve steepened right after that data was out if you recall the santelli exchange we had earlier in the week, pretty much we decided that was about the only possible outcome was a curve steepening. why? i'll give you 3.7 million reasons why. we have basically long 46 term unemploy unemployed. people have been unemployed for more than 27 weeks. it's just shy of 4 million. it's very depressing. now, yes, we are creating jobs but that's why the yield curve is doing what it does. let's start at the beginning once again. you have your yield curve. long maturities, short maturities. what happens in may of last year. in may of last year what we did was we readjusted the curve. we saw the long end move about

100 basis points. so the curve steepened a bit. fine, great for banks. you've heard it all. then lo and behold the march meeting. what happened? you took this curve and notion of zero interest rate policy coming to an end. pushed the short end rates so the curve flattened a bit. well, that's why it had to steepen. why? we talk about the messiness of the fed exit. you're kind of seeing the early stages of this. i'll tell you why. because the long end, even though it readjusted for the end of tapering in may, now looks up and sees that even though we're making progress. we're certainly better than than we were. 5 1/2, 6 years into the post crisis we still have many post crisis programs. long-term unemployed and the long end just isn't buying the general level of economic activity being enough. might be the best in the world on a relative basis. but the short end is going to continue to be scratching its

head because many traders on this floor operate under the premise that really there isn't a lot of forward guidance. the fed has to get out of qe. every direction they're getting criticism. it isn't addressing the structural issues of unemployment. in terms of zero interest rate policy, they're going to have to raise rates. just consider this. if we get an unexpected black swan, maybe even a little gray swan, what's the fed going to do for an encore? what are they going to do to address any issues that happen out of left field? we need to normalize policy and that's why we have this feddish swerving curve almost every time you get important data. carl, back to you. >> you're the man who keeps his eye on it for us. thank you, rick santelli. one more look here this morning at grubhub, popping this morning over 40% on the nyse. four ipos are up double digits which puts them all in the top 30 of ipo debuts this year. we'll talk more about grubhub in

a little bit and the winners and losers in this year's red hot ipo marked in a moment. in a mo . what's in your ear? oooo! a quarter! check for more! well, i guess i can double check... my watch! [ male announcer ] it pays to double check, with state farm.

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and nasdaq today. we wanted to take a look at the performance of the companies already gone public so far this year. bob pisani has that for us. hey, bob. >> carl, the important thing is ipos are doing great this year but not as good as they were doing a month ago. let me split it into two big groups. biotech pharma and software and service cloud computing. they have gone public in the last six or seven weeks here.

the project, for example. up 32%. that's online advertising. q2, a cloud-based banking for regional banks. 2u, educational sales doing well. up %. aerohive helping with mobile applications. that's up about 9% right now. biotech and pharma, there you go. biotech and pharma, they're doing well. applied genetics up 3%. the rest of the group here look at some of the other biotech names there. they're down all across the board there. so very, very much of a mixed market that's going on today in biotech and pharma. how about a group, i'm going to call it other. they don't fit into a clear group. energous is up huge. coupons.com, they're up. cbs outdoor, billboards for cbs, they're up. everyday health, they do an online website, they're good. king digital is down 11. very mixed group here overall. you want to look at the health

of the market, do it simply. ipo, that's the etf symbol for the ipo e trktf. that's been run by renaissance since october. had a nice run-up by 20%. it had a lot of biotech names in it and software and service names in it that have affected dramatically in march. compare it to how it does against the s&p 500. this is the ipo that's the etf you're looking at against the s&p 500. that's the green line. you see how the ipo business out performed dramatically in february and march but in march kind of crashed down and, believe it or not right now, the s&p 500 is outperforming the overall ipo market. although today, carl, it's been just terrific today. put up our performers today here. there's grubhub up 40% right now. put up ims health. that's a big mover on the upside as well. in fact, all four ipos today that have come out are very much

big on the upside. they came out very much on the upside and five9 on the nasdaq, they're all trading up in the double digit area. so, guys, mixed market right now but, today, terrific day for ipos. back to you. >> all right, thanks isa lot, b pisani. europe going to close in a few moments here. >> european stocks extended their gains. this of course was the week yesterday when you had the very aggressive verbal intervention from mario draghi at the ecb basically saying we stand now unanimous, that includes the germans, ready to embark on qe if need be. quaund ta quantitative easing and the strong euro, he says was deflati deflationary. so this rally on the bond markets continues in europe. that's driving the yields down. if we can look at those. further and further into negative territory.

greece has had a phenomenal week as a result. a german newspaper is reporting that they've modeled at the ecb buying 1 trillion euros of assets and that added .2 to .8% of inflation as a result. we were lucky enough today, my colleagues in europe were lucky enough to catch up with the vice president of the european central bank at a function in italy and we asked him specifically whether yesterday they discussed qe. this is what he said. >> we have had some discussions and we will have more about the details. yesterday was about the general view. and it was very important that there was unanimity. the details are important in the end and we will see how it goes. and we will see, also, if indeed we have to, you know, yield all those instruments. >> one of the bizarre things, of course, that results from this is that people woke up today to find that the spanish government

could borrow more cheaply at the five-year level than you could here in the united states. because you have a central bank in europe that's embarking on qe and a central bank here that is pulling away. and that is a huge change in the tetonic plates that we'll have to work our way through in 2014. let me slow you -- we reversed slightly on the trade. i know that. let me show you two stocks that have reacted today on bid from the united states. thank you very much. a generic drug maker in sweden rejected an offer from mylan here. up 3.3% on speculation that brown and forman which makes, as you know, carl, jack daniels, made a bid for remy. >> not my poison. >> it was mine for a long time. had to stop it. too aggressive. >> you went straight to xema, right? >> nice weekend. >> good weekend to you. simon hobbs. he brings up that spanish five

year and whether it's yields in europe, jon, or an ipo here that u hunt for yield hasn't gone anywhere. >> i keep having people rephrase that praise for me and it's so true. when i saw the jobs number this morning, okay, the regular economy is not that good. right? ultimately the ipos are going to continue to perform well because investors are basically bidding up whatever future price they can get to because there's no growth anywhere else. >> at the expensive profitability? i mean, they always say we're cash flow positive, jon? >> i'm nervous, carl. i'm nervous because of what sales force is doing today, because of what net suite is doing today. a lot of growth stocks are testing lows for the year right now. we're seeing these ipos come to market. some of them pretty good quality. we've had some today. some of them t not as good. they're popping initially but we'll have to see where they go. investors increasingly looking for growth in stocks like intel and microsoft trading, you know,

near year or multi-year highs. they haven't proven that they've got the secret sauce for moeshl and cloud quite yet. this earning season, i think, could be critical. the sort of data, the sort of information that we get from them on how they've done in the previous quarter but also in the second half outlook because that optimism over the second half is -- >> the quarters for the old line tech? >> old line tech. a lot of money is moving in value tech, oracle, microsoft, intel, even ibm. you know, if they start sounding cautious on the second half we'll see what happens. >> even when you look at the prior generation of the high tech, now we're saying prior generation, facebook and twitter, oh, well, for the year. but look at a 12-month chart. look at an 18-month chart. the stocks are all double and way up. maybe they're getting rationalized a little bit while the ipos are all getting bid up right now. >> all i know is near bear market on amazon year to date. down 19 1/2. >> amazon is another one. when we come back, the debate over rigged markets made headlines all week long and now

it may be trans lating into action by the fed. we'll tell you what eric holder has to say about hft in just a minute. announcer: where can an investor be a name and not a number? scottrade. ron: i'm never alone with scottrade. i can always call or stop by my local office. they're nearby and ready to help. so when i have questions, i can talk to someone who knows exactly how i trade. because i don't trade like everybody. i trade like me. that's why i'm with scottrade. announcer: ranked highest in investor satisfaction with self-directed services by j.d. power and associates. but with so much health care noise, i didn't always watch out for myself. with unitedhealthcare, i get personalized information and rewards for addressing my health risks. but she's still gonna give me a heart attack. that's health in numbers. unitedhealthcare. ♪ "first day of my life" by bright eyes ♪

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a lot of discussion about ipos and tech today but we do want to brick it back to the markets. the dow has lost gains during the course of the morning. currently in the red. enjoying the comp down now more than 1%. very rough day for the nas, especially the nas 100.

and then the jobs numbers. diane, good to have you back. good morning. >> good morning, carl. >> i can't imagine you were that thrilled with the number today. >> it was an okay number. we got it. we got the numbers, revisions were better. we need a lot more. we still had -- we're coming back on participation after the participation rate had deteriorated in the fourth quarter. i hope that's the beginning of a trend. i don't mind a higher unemployment rate if it's because people are throwing in their hat and got more hope out there. the devil is in the details and they were not terrific particularly when you look at we did get a pick-up in hours worked but earnings ticked down a bit. >> right. temps, too. there were some notion, diane that we know the spring, the seasonal affects on pent up demand for labor and this wasn't the pay back some were hoping for. is that a ledge made concern? >> i think that is legitimate concern. also i think we did see some of the hibernation versus migration.

the pick up in leisure and hospitality was a little bit of a pick-up. it did accelerate there. you can't get a hotel room in florida right now because people left the east coast and the midwest were things so horribly weather wise. we went down to sunny vacations. that's great for sunny vacations but still low wage jobs. manufacturing was weak in today's data. construction is okay but not terrific. we want to see more construction activity. we need to see a change in composition of jobs growth. we crossed that previous peak on private employment but we've got a bigger labor force than dedid back then. on the other side of it, composition of job gains on this recovery had been low wage. they're not the same jobs we lost which was higher wage manufacturing, business services and construction jobs. we still got to get the quality really matters. >> diane, what do you make of these high-tech ipos and the fact that all this growth is in companies that kind of employs so many fewer workers? do you think there's a structural change going on in the economy? >> you know, some of those

companies become very big companies. think about companies like google or facebook. now they're employing a lot more workers. what we do know is one of the big fallacies is that fall business is the backbone of the u.s. economy on jobs growth. new biggs formation. the ipos are one piece of that. what i worry about more is that we're not getting a lot of the venture capital and new business formation we should be getting particularly because we don't have an immigration reform on high-skilled workers. disproportionately immigrants who are highly educated, educated here in the united states. also the people who start those new companies that become much bigger companies and are the backbone of employment growth. >> diane, the ten-year now below 273. i guess so much for thinking about rates going up in six months. >> it's interesting how the market did over react to the tapering talk. i think the fed made it clear. janet yellen this week made it clear. she said point blank in some ways this labor market recovery is as bad as recession. and i think that she's right

about that. and i think she made it clear that even when the fed does start raising rates it's going to be a slow process. it's not going to be up to any levels of the rates we saw in the past. we're in a low rate environment for a long time. it would be great if it was a higher rate environment to reflect a stronger economy. if you want to think about goldilocks this is still lumpy, cold porage, as far as i'm concerned. the justice department now looking into high frequency trading and if it falls under insider trading laws. eric holder confirmed this at a house panel hearing earlier today. eamon javers has the details on that. >> carl, a whole lot going on in hft land this morning. let me bring you up to speed. let me start here with trade station. now, that's a retail brokerage. they're doing to announce cnbc learned this afternoon that they are going to connect to iex, the reform minded exchange at the hart of flash point. that's another venue for customers to connect to that exxang. on eric holder, he was appearing

on capitol hill this morning talking about the department of justice's budget but he also said that the department of justice is interested in high frequency trading. take a listen. >> this practice which consists of financial brokers and trading firms using advanced computer algorithms and ultrahigh speed data networks to execute trades has rightly received scrutiny from regulators. i can confirm that we at the united states department of justice are investigating this practice to determine whether it sil la violates insider trading laws. >> that's going to be an interesting one because the question -- we know you can trade faster than the speed of human thought in terms of milliseconds. the question is can you insider trade faster than the speed of human thought at millisecond level. we're going to find out the answer out over the coming months. another one to bring you here, the dust still settling now from that debate on our air earlier in the week between iex and bats, the exchange. take a listen to this debate

here over exactly how bats prices trades on its exchanges. listen to this. >> my question to bill if he's launching these accusations, what -- >> i'm launching accusations. >> what market data do you use to price trades on direct. >> we use the direct feeds and in combination. >> not what you used to route. what do you use to price trades in your matching engine? >> we use a direct feeds. >> no. >> yes, we do. >> you use the same data we do. >> no. you used -- that is not true. >> now, bill o'brien saying there that that is not true, but bats now according to the "wall street journal" coming back and saying, well, it's partially true in any case. bats saying that the exchange operator saying that two of its exchanges, edge-a and edge-x do use the slower feed known as securities information processor to price the trades. that's an important nuance because that f. they're using slower processes to price trades

there's a question as to whether hfts the jump in and pick off the trades. a lot going on here. >> difficult to get your arms around but very important wrinkle as you bring our attention to. and bats did have to do some clean-up this week after that appearance. >> absolutely. he got something very wrong. when we come bark, we told you this week how colorado approved 21 applications from residents wanting to grow hemp. big policy change after the state legalized marijuana. so what can you actually do with a hemp license? one of the people who got one will talk about that when "squawk on the street" returns. . in a world that's changing faster than ever, we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present.

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coming up, too hot, too cold, or just right? is the economy creating a sweet spot for stocks or are the bears on their way home? then, if you think the high frequency debate doesn't affect you, listen up. it could be to have a big impact on your money and is it 2,000 all over again for the nasdaq? some say it's starting to look like it is the flood of ipo toss blame. all straight ahead, carl, at the top of the hour. the carnage continuing at the nas. we'll be all over it. >> thanks a lot, scott. earlier in the week we brought you a report on colorado approving 21 applicants to grow hemp and what that might mean for the state's economy. we track down a winner of that

golden ticket to find out what it might mean for business. joining us this morning, daryl and mike sullivan, co-owners of hemp farm, colorado. they join us this morning from denver. good morning. >> good morning. >> how long have you been waiting for this like this, daryl? >> for years and years. it's finally happened. >> what do you think made it happen and how long can this last? i mean, 21 licenses is not a lot. what gets it past the pilot stage? >> i guess, i mean, we're going to see how well this goes off and hopefully here next year we can get more people involved in it. right now we have a limited seed stock, so trying to get people involved in license to grow it is kind of the limited numbers. >> mike, have you guys farmed before? if so, what crops and how much scale can you bring about in the early stages here? >> we have not really farmed outdoors before. we're just familiar with the

marijuana and hemp strains and we're just going from there and trying to grow outside and become farmers, outdoor farmers. >> guys, let me ask you. how much of a changing demographic do you see in hemp and marijuana interests? i was in aspen over christmas. i was surprised how people in their 50s and 60s were frequenting the store and buying marijuana. do you see it getten broader than you thought it might be? >> yeah. and with hemp, sense it isn't a drug, a lot more people do realize that the use and benefits of it and not just using it as a drug because it isn't. you do get a larger demographic that is more accepting of that. >> where do you think your crops are going to end up? who is the end user for this hemp, mike, and do you guys have any sense as to how the pricing is going to be worked? will exchanges start to operate in hedging? how the that all going to happen? >> we see a lot of textile hemp

fibers. makesing a lot of plastics into hemp nowadays. the food side of it, it's very nutritious seed. the leaf has a lot of cbd in it. it's popular and is very helpful thing for the human body really. and we really don't know the prices yet. i think they're going to find themselves as this first season of hemp growing is concluded. and we see how much of the actual plant we have, how much seed we have, how much, you know, the overall hemp that we have. that's going to set it's. >> how about banking? i know that banking is one of the big issues. are you guys able to maintain your business in a traditional bank account? are you able to accept payments? how much of that has been worked out? >> we haven't really gotten into that too much. but we haven't ran into any snags or problems with any of it. >> so you're using traditional banking right now? you use a regular bank like a normal business? >> yes. >> yes. >> all right. mike, you guys must have done

some calculations as to how much you can clear in the first season in terms of dollars income. how much money can you make at this? >> oh, well, if the full seven acres and the full plan goes to fruition, i mean, the sky is really the limit. it could be a million dollar crop this year or it could be a $50,000 crop. we really don't know. it's really up in the air. obviously we're hoping it's on the higher end. >> yes. >> the higher end, man. the higher end. >> no pun intended. >> you guys are pioneers to a large degree. a lot of folks on twitter getting a kick out of watching this economy just spring out of nothing. thanks a lot, guys. >> thank you. >> thank you. >> a hemp farmers out in colorado for us today. we should take a quick look at the nasdaq now down 74 points. that's almost 2%. a lot of that damage has happened in the past 15 minutes or so. when we come back, talk about a couple of start-ups you saw first on this show making waves in the tech world.

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improving survival rates in the patients. that stock is down to session lows. carl, down about almost 2% in today's trade. back over to you. >> thanks. we do want to update you on a couple of "squawk" breakthroughs. start-up artsy on nounszing it raised over 18 milli$18 million funding. it pegs itself as the pandora of the art world. we talked to carter cleveland last year and he explained exactly what the company is about. >> similar to pandora in the sense that we can make recommendations for you. the more you use the site the more you learn about what your artistic interests are and we can recommend other works you might be interested in learning about or collecting. >> meantime, another one of our breakthroughs making the cover of "forbes" along the tech-heavy hitters. the ceo of "house" in the right-hand corner of this picture with elon musk, chambers and hoffman, leoni with a

headline "innovation factory." >> in a lot of cases marketplaces which kind of fits to artsy as well. it's so compelling because they're not holding any kind of inventory. they're an interchange point. grubhub today is pretty much a marketplace as well. capital light businesses that connect massive amounts of buyers and sellers are so appealing from an investment standpoint. >> unbelievable. meantime, the economy added 192 jobs in the month of moorch. question, is did you nail the number? >> the jobs report is out. >> march nonfarm payrolls increased by 192,000 jobs. >> were you able to nail the number? if so, you will win this cnbc wireless speaker signed by the entire "squawk on the street" gang. find out if you're the lucky winner next on "squawk on the street."

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beautiful day in baltimore where most people probably know that geico could save them money on car insurance, right? you see the thing is geico, well, could help them save on boat insurance too. hey! okay...i'm ready to come in now. hello? i'm trying my best. seriously, i'm...i'm serious. request to come ashore. geico. saving people money on more than just car insurance.

you stand behind what you say. there's a saying around here, 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. we do have a winner in our nail the number contest. nailed the number on the head with a guess of 192,000 jobs for march. tyler joins us, the twitter handle@nysetalk is our winner. he joins us this morning.

tyler, good morning. >> good morning, everyone. >> you've tried to win a couple of times before but this one worked. what led you to 192? >> well, to be honest, it was a little lucky. i've been reading estimates around 200,000, and i like to check twitter pretty often and twitter was saying anywhere from 180 to 225. i thought it would be a little lower than last month's 17 97 so i just ended up guessing 192. >> obviously impossible to guess these numbers. it's a crap shoot every month. >> right. >> the consensus, tyler, was so concentrated around 200, i think most of the major banks were close to 200. people tend to want to go for the gold, right? they want to take the severe under or the severe over. what gave you the confidence it would essentially be in line? >> i thought that weather hadn't changed too much from february

to march. i remained a little optimistic but i didn't think it would change too much. >> you actually have a job in accounting. you're an analyst, i believe. we won't get too specific about what you do. your thesis of how job growth is going to shape up this year? >> i think we will continue to see pretty consistent growth, maybe more towards the end of the year. i'm thinking we might have a little bit of a correction, but we'll see how that plays with the job growth. >> how about obviously the huge gap between what the economy does and what stocks are doing. do you think -- how you're feeling about where we are in terms of the s&p at 1881? >> i feel that stocks are starting to get a little frothy in my opinion. i think that's the term that's being thrown around. i think we'll continue to see

growth until sometime the end of this year, beginning of next year. >> what are you going to do with this wireless speaker? >> i'll probably put it in my room and not let anyone touch it. >> tyler, congratulations again. >> take a picture and tweet it out. >> very nice. again, winning the number, the nail the number contest right on the head at 192. not bad. not bad for a number that we know can be a little capricious. >> absolutely. you got the feature with all the celeb's names on it. good prize. comps down 70 points. some discussion on twitter about whether or not we're actually filling the gap here. looking at the lows of the session. this ongoing story, jon, of the high fliers being sold. >> two exists. >> yeah. and apparently not taking a break today. >> you know, while we've been on true car filed for ipo, a car comparison marketplace being underwritten by goldman sachs. this morning coastline announced he's launching a simple home marketplace to sell your home.

it feels like in the bubble in 2000 when everybody was launching all of these different marketplaces. it seems like they're being flooding right now. >> the parade has to end, in his view. it can't go on and on at the expense of the broader market. we'll see what the afternoon brings. for that, scott wapner on "the half". >> it's the worth day for the nas since february 3rd. you're documenting it pretty well, right? >> yeah, this is the nas. this will the worst day at these levels since february 3rd. >> the warning signs are starting to develop in many parts of that market. have a great weekend. thanks so much. welcome to the "halftime show." the stocks that have led this rally permanently pumped or can they regain their run? high frequency fight. if you trade stocks online, listen up. why the debate over speed is about to impact your money. goldilocks is back after today's employment report and fed chair