good morning, everybody. welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. the market focus turns to job creation today. the labor department will release the may employment report. that's coming up at 8:30 a.m. eastern today. in the meantime, let's take a look at some of the systems. economists are expecting nonfarm payroll to rise by 200,000. that comes after april's surprising 288,000 jump. the adp report had a less than 200,000 number. that raises some concerns about today's report. as for the unemployment rate, that is expected to tick up slightly to 6.4%. average hourly wages are expected to rise by 0.2%. you'll see right now, the futures are indicated higher right now. the dow futures up by 25 points, s&p 500 futures up by 1.5 points, the nasdaq up by just over 4. the ten-year note and the bond market is yielding 2.566%.

we have been pushing against that ceiling this week. currencies, yesterday it was the ecb decision that got things moving. the euro is slightly higher at 1.362. that's because the euro was so much weaker ahead of the news yesterday. let's get over to andrew. he has some top corporate head liens for you. good morning, andrew. >> thank you, becky. i don't call these corporate headlines. it's like wall street fine headlines. bank of america this morning reportedly now in talks to settle mortgage probes. "the wall street journal" reporting that the bank giant could pay more than -- are you ready for this, joe? $12 billion with a "b." >> they did robo signing on people that were two years in arrears. >> to settle with the justice department in several states. the probes involve the handling of mortgages before the financial crisis. 5 billion of that number amounts to what is expected to go towards helping home owners in reducing principle amounts and

monthly payments. bank of america and the doj are not commenting. it comes right after the situation relating to jp morgan where they were fined similarly. >> and countrywide. >> some of it is countrywide in the same way jpmorgan ended up paying for the sins, if you will, of bear stearns. >> it doesn't matter where it comes from. you can't fight city hall. >> let me tell you about another situation, not similar but we're still in the bank government situation here. french bank bnp paribas could get off cheap if the u.s. authorities assess a $10 billion fine over alleged sanction violations. that amount being discussed right now, but the u.s. said to have suggested a figure apparently as high as $16 billion. that's according to reuters. that number was the response to a bnp offer of $1 billion thought to be -- they thought it was a negotiating tactic. a $16 billion penalty would exceed the record 13 billion

that jpmorgan paid last year to settle a number of mortgage related cases. >> i read more about this. the ceo who's in there now was not in there when the money laundering was taking place. that was 2002 to 2009. this is a new ceo who came in. there are questions being raised about whether he can withstand this probe, even though he won't in charge at the time. >> you're going to say whether he's going to get fired for having this happen. >> right. >> in france, almost culturally this happening -- >> you have to fall on your sword. >> i think they're taking this very -- it's not about numbers anymore. >> it looks like some may have been taking place in the united states. officials in the united states at the bank may have been responsible for part of it. >> i'm not convinced that it went to the highest levels of the -- i don't think the ceo -- >> sounds like it's fairly -- >> should have had someone in

there more hands on. you're not going to work that hard for that. >> it wasn't that guy, though. >> on b of a, you're putting it in the shakedown category, too? >> yes. >> you are? you're saying it's countrywide? that's not different than bear stearns? i separate that. i say bank of america bought countrywide idiotically. moronically. >> the government was prompting -- >> a little bit. but they weren't forced to. nobody put a gun to their head. the bear stearns deal was a different deal. >> that was a different ceo, too. >> do you remember the reputation that golden west had as the greatest? >> yes. >> even wachovia, it almost took wachovia down from that. it was a societal bubble 20 years in the making and everyone participated. the one thing i do know is that as the market, the summer dull

and it keeps grinding higher. did you see it yesterday. >> yes. >> there's a cap on the ten-year because of what they did in europe. >> if you sold in may and went away, you lost. i think the s&p is up 4% right now. you've lost half the gains for the year. that's when the gains came. >> that makes sense that that's when people would be least expecting it. >> yesterday it's like all the people looking for corrections, well, there's nothing that can happen that's good in the near term. what's going to happen that's going to get the market going? the government is not doing anything. it comes from draghi, it comes from all the way over there that causes a 100-point gain. if we get a better number, today is what could get the market going. >> some of his concerns were allayed. >> they better move and they did more than what most people thought. >> some of the concerns he had a few weeks ago, think about the las vegas conference or one of the conferences he was speaking at a couple weeks ago he raised

real concerns. kid kelly spoke with him yesterday. he said some of the concerns were allayed by the ecb's actions. >> if you were a global bond investor and you could choose between 1.3 in germany -- >> oh, sure, right. >> or 2.6 on a ten-year here, it's not that bad. walmart is holding its annual shareholders meeting today. they have a lot of shareholders. the retail king holding a meeting in bentonville, arkansas. faber used to go out there for all of his walmart specials. not a lot to do. he's climbing the walls out there. i think it might even -- >> i visited there. i used to cover retail for "the wall street journal." >> i've never been. >> i've been. >> you never thought i was at a walmart. >> it's a dry county but there are places you can go, like to the friday's. >> if you sign your name in the sin book, you can have a drunk. they'll serve you maybe three or four places. it's been over a decade. >> one drink? >> i think i only had one drink but you could probably get more.

>> you've got to sign a sin book? >> yes. you sign your name in a book that basically said you were from outside the county. you're not from the dry county. >> are there other places where you can get other things besides alcohol? >> gluttony i think they could take care of it there. >> faber didn't come back saying wow, i wish i could go back there. >> you've lived in all 50 states at some point? >> you never shopped at walmart in your life. >> there's the nonwalmart person. >> i've been to walmart. and i've shopped there. >> i lived in kentucky, massachusetts, california and now i'm in new jersey. >> back to walmart. she told me to shut up. it's usually a star-studded event. a-listers make the trip. so far, no word on who will ab pearing this year. last year, hugh jackman served

as emcee. this year's meeting does have clouds. walmart had several straight quarters of declining sales. and the symptom performances lagged a little bit. shareholders are expected to vote on a proposal to appoint an independent board chairman, also a pay measure designed to limit executive compensation. they have a young ceo now. young, happening sort of very photogenic. we'll have a live report from bentonville later in the program. >> in the meantime, it is time for the global markets report. ross westgate is standing by in london. ross, tell me it's not so. is this your last day? >> this is my last day on air with cnbc. yes. big day for me. >> oh, ross, we love you. i cannot believe that we are getting to this day that it's actually here. we have such a long relationship. >> we could all cry. >> we could. >> barbara walters gets people

to cry. i think -- what could i ask you to -- i don't know. >> favorite memories. the james bond. >> it's amazing, it's been an amazing ride. i've loved everything i've done. the broadcast business is fantastic, an amazing bunch of people i've worked with. i've been privileged to work with all you guys and i'm going on to do something really exciting. i'm hanging up my anchor pegs and getting the other side of the desk. i'm very excited about that. >> it's been a good cover for you. are you going back into her majesty's -- are you on a -- >> do you know i can't possibly divulge those details, joe. >> that's right. >> you know that. >> you milked this. oh, yeah, that guy, he's on tv. >> no one would ever suspect.

>> that's why he's in the ukraine. that's why he's in all these trouble spots, covering financial. >> that's right. when you're a journalist, you get to travel, right? and that's part of it. >> a good cover. >> part of the cover. >> a good cover. >> hey, ross, john harwood. >> hi, john. >> i would just want to know if conversations with joe are what you're going to miss the most about the television business. >> and dessert. we have dessert when i visit him. >> dessert? we can still do that, joe. john, as you know, conversations with joe, this time of the morning are very unique and special. >> you need to be on your toes. >> i will miss that part of my life. >> people in europe, at night if you're not going to have cocktails, we have dessert. we do that when we go to visit. >> do you see any significance that ross's last day was the

70th anniversary of d-day. >> wasn't it ten years that president reagan died yesterday. i saw nancy laying some wreaths. i'm crying about ross and i'll start crying if i talk about reagan and d-day. do you have a report or is this just --? >> do you want me to recap something for the last time? would you like me to do that? >> if you can get through it, i don't know if we can. >> for old time's sake. >> let's do a quick recap. european equities are a little bit firmer. we moved higher post the ecb actions. we're looking ahead to the jobs report today. where we have seen a lot of movement is in italian stocks. they got the biggest benefit from the ecb actions yesterday. and you can see spain is up about a percent today. italy adding another 0.5%. we continue to see yields on

italian debt come down along with spanish yields as well. you have to remember, mario draghi said we'll see delayed effects from these packages, it's going to take three to four quarters. but the takeaway on that is if they are going to use unconventional tools, it won't be until the end of the year. i think that's the takeaway from yesterday. it's not necessarily the end of the package. certainly that's helped spanish and italian markets higher during an outperform and debt as well. the interesting thing is what happened with the euro in the last 24 years. we started before that ecb decision above 136. we went down to a fresh four-month low of 135. we moved a big figure down. within an hour we reversed back up to 1.35. there were a lot of options placements in that market ahead of that move, now trading at 1.3636. we continue to see euro shorts put on. it's been a wild day over the last 24 hours, particularly for

traders. the dax through 10,000 for the first time during the session yesterday. fresh record high there. and final report on deutsche bank. its shares in the red today. subscription rights from lender's cash call begin to trade. they also continue to face major litigation costs. investigations into foreign exchange manipulation could have a material impact. for the very last time, that's it from here in europe. thanks very much for everything. and i will pop by sometime. >> she introed him. >> when my business is up and running, i'll come by and talk about it. >> that was my question, ross. is your new job going to bring you to new york? >> yes, it will. yes. >> we have that. and you will come visit? >> and i will come and visit. i'd love to come and visit. it's been a ride, guys. it's been a ride and i feel privileged to have done what i've been doing for the last 20 years. >> ross, you are a pro. >> you might be back.

we'll always say we'll leave the lights on for you if this secret service thing doesn't -- i mean, your cover is blown. >> so many years together. >> like long. >> aa lot of mornings. oh, ross. >> a lot of mornings. >> good luck. come visit. come back. >> thank you. will do. thank you. >> now we have to go to john. so many big topics buzzing around capitol hill right now. we are bringing washington to wall street. how about that? >> it's right here. >> although we're in new jersey. we have a rare in-studio appearance by our chief washington correspondent john harwood. we keep talking money issues. we never have talked bergdahl. i go back and forth. i don't know how i feel about it. i wat a guy volunteers to go. who knows what happens after that. you're over there under those

circumstances. it's tough, five years, it's hard to judge, hard to see the sequence of how things happened. >> sure. >> they apparently tried to escape five times. it wasn't like he left and said i'm signing up. it's very difficult whether you bring a rose garden ceremony and do it there, that's a little bit questionable, when you knew all these details. i saw a piece yesterday, six reasons why it made sense for the president to do this. there are six really good reasons why his people thought this was a good idea. and i don't know, i don't know whether you could have figured out the backlash. it's not going away anytime soon, do you think? >> it's not good. it's the kind of thing where you've got to weigh how the deal looks. five guys for one soldier who walked off the base. >> we always pay -- we never get an even trade. >> against -- this is his point. as against the principle that we

never leave anybody behind. it's the kind of thing that strikes a lot of people as there's something off about it. and what i think the president and his people were trying to do was to humanize the situation. they realized that some of this was going to come. i don't think they expected the intensity of it. so you have the ceremony with the parents to underscore, as he said yesterday, that this is somebody's kid. that's tough. it's a very complicated and painful human situation. >> did you see stewart, the battle of the cliches he did? >> that was good. >> did you see that? ten times you can go anywhere and find someone saying we never leave our boys behind, including in "toy story" where the guy says we never leave our boys behind. the other cliche is you never negotiate with terrorists. one person say you never negotiate with terrorists, the next person says -- they went and had ten on each side.

>> it also underscores -- >> what do we live by? >> the asymmetrical nature of the war on terrorism, it underscores this. you're an adversary in the war, they are terrorists but if wars traditionally end with an exchange of prisoners, you can avoid talking with terrorists. >> the left is on him about closing gitmo. you're going to close that by the time we're out of afghanistan, too? >> i don't think so. >> you have to give the prisoners back, the one that were picked up in the afghanistan conflict kuoy to give back, don't you? >> i don't know. if it were easy to get rid of those prisoners. >> these are the most hard core guys. >> this legitimizes the taliban, makes them look like -- gives them back the claim that they were the legitimate leaders. >> they immediately said wow, we were recognized by the united

states. >> they put out their own video. >> everybody in washington who is all upset about not hearing about this first, do you buy the argument that the white house claims, we couldn't tell anybody because we would have put him in harm's way? >> it doesn't seem reasonable to me that he was about to die and, therefore, we had to do it instantaneously or that it would necessarily blow up because you told a couple of members of the intelligence community -- >> do you think there would have been a leak? >> they knew about the osama bin laden hit. >> that doesn't mean you can't trust anybody. >> they knew about the bin laden raid. >> how many people would have to sign off on the intelligence committee? there are people like mccain who says he wouldn't have gone along with it. if you tell them and you don't get the majority of them to say, okay, go ahead -- >> i don't think there's a requirement that a majority of them say okay.

you're not going to have a vote. >> you just have to tell them. >> it's more about keeping them in the loop and satisfying the requirements. >> when you said on osama bin laden, did they tell them in advance? i'm not sure they did. >> no, i don't think they did. >> they did. i saw it last night. they told certain members of congress, they alerted them they were going to go the raid. >> i didn't see that. that would surprise me. >> i saw it, yesterday they said that. that was one of the counterpoints to the argument that there could have been a leak. >> well, right. it makes the point either way. just because somebody is in congress doesn't mean they're going to leak the story. >> right. >> and -- >> but is that people crying about it after? the question is -- >> no, that's a real requirement in the law. >> that they be told? >> consultation is embedded in the law. the president issued a signing statement saying that he thought that that provision was annan constitutional infringement but that doesn't overturn the law.

that's him expressing his opinion about what happens if we get challenged in court. >> okay. >> george will. i don't know. okay. >> we'll do our jobs today. >> you have orange hair. still looks good. >> you want to give us a prediction? >> he doesn't do that. >> i would expect a surprise on the upside, but it seems like -- >> why would you expect that after adp? just you're feeling that? >> feeling it. >> it just seems as if we're in -- whether you have a surprise on the upside or downside, we're in a steady state kind of situation where we're getting -- what's the run rate now? a couple hundred thousand jobs a month? >> yes. you know, it's not great. it's not bad. we're recovering but we're recovering slowly. and not enough to raise wages for most people. >> right. >> so we kind of know that already. >> john harwood, thank you.

>> you bet. >> do you have a prediction in belmont by the way? >> i want a triple crown badly. so i'm picking california chrome. >> a nice segue then. next segment when we come back from this break, the quest for the triple crown, california chrome has the chance to make history and some big bucks. we head to belmont to check out the price of victory. and netflix has a big weekend coming up, plus, more streaming controversy. all that on "squawk box" when we return.

welcome back, everybody. time for the executive edge today. as we approach father's day, there's a new report out about st stay-at-home dads. according to the study from the pugh research center an estimated 2 million dads stay home with their children. that's up from 1.1 million a year ago. when i'm at the park or when i do things after work with kyle, a lot of times it's dads taking their kids to the music classes or the park or other things now, too. >> i'm in that nether world. i go home fairly early. >> i'm not a stay-at-home dad between the hours of 3:00 -- what time do i get home? >> noon. >> that's a half day for me. we'll stick with that.

>> i look like a stay at home dad. i often pick the boys up from school and i am the only dad that usually does that. >> kyle in a class of ten, there are two dads and several grand paz, too. >> you have a multimedia empire to tend to. >> i have two boys to attend to. >> print, movies, a column, "squawk box" co-anchor. i can't believe you're ever at home. >> he does pick the boys up at school. >> i know you do. >> we hung out last night. it was so much fun. because i came home from california. >> what did you do last night? how did you hang out? >> just madness. it was just really good. >> 3 or 4. >> they're almost 4. >> i can't believe that. >> september. >> i remember slapping you around about getting married. find yourself a woman. remember? >> i remember that. i remember that. that was seven years ago. my anniversary is coming up next

tuesday. big dinner. >> i can't believe you listened to me. you found one, married her. >> it all worked out. >> you don't listen to me about other things. was i right about that? >> you were right about that. you may still be right about capitalism. >> after that guy called me -- says i take the capitalist side on everything yesterday. that cut deep. instead of the anarchist, communist or socialist side of things. i should throw atheist in there. what other ists am i leaving out? >> it's all good. still to come, we'll talk about the value of a triple crown. we'll head to the belmont where california chrome has turned an owner's small investment into a multimillion dollar affair. first, place your bets. we are about two hours away from the may jobs report. we'll talk market expectations after this. as we head to a break, take a look at yesterday's winners and losers.

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good morning and welcome back to "squawk box" here on cnbc. i'm joe kernen along with becky quick and andrew ross sorkin. in the headlines this morning, we're about two hours away from the may jobs report. economists are looking for

210,000 new nonfarm jobs for the last month. and unemployment might tick up according to them to 6.4%. it was 6.3% last month. and an intriguing meeting of ceo minds reportedly took place earlier this year. reuters reports that sears ceo eddie lampert met with ford's alan mulally seeking advice. sources say lampert may have been gauging whether mulally was interested in becoming chief executive at sears. >> really? wow! >> that's -- >> he wants something to do. >> all i always thought mulally another act in him. >> if he could turn sears around that's a big deal. >> what's second prize, running sears and jcpenney? you get to do both. mulally who's retiring from ford next month will be a guest on "squawk on the street" later this morning.

all the goodwill we built up over the years apparently means nothing. >> i'm talking to him also for "on the money." that will be on tonight. >> are you a soprano or soprano? >> soprano. >> you set vigilante the other day. >> i said something else. it was something else. >> no longer the most popular series in hbo history. "game of thrones" holds that honor. the stats are staggering. "the sopranos" averaged 18.2 million viewers. >> it helps to never know who's going to get whacked. >> especially when it could be anyone. >> on this show --

>> that's the stunning thing, the characters you think are going to be around for forever, they kill off. >> they do. >> all the time in "game of thrones." that's why you have to watch. >> i haven't seen the last couple episodes. >> i haven't seen the last season, any of it. let's get back to business. a preview of today's much anticipated employment report. michelle girard is chief u.s. economist at rbs. also, jim o'sullivan, chief u.s. economist at high frequency economics. let's talk first about what you expect. if there's a number out there, do you think it would come in at the high end or low end? >> we were discussing this because we had this discussion in my office yesterday. you in many ways would think the economy is expanding. the claims numbers, if anything, have edged a little bit lower, the anecdotal evidence on hiring has been better. you would think there would be the risk of an upside surprise.

after that gain last month and after adp, although -- the truth is, that kind of suggests there isn't anything much different going on. you sort of come back on the other side. i wasn't able to really answer the question effectively yesterday for my colleagues and i feel the same thing today. i don't have a strong conviction in either direction. i guess i don't think we'll get a big surprise in either direction, much off 20,000 or 30,000 either side of consensus. >> jim, how about you? would you take the over or under? >> my official number is 200. we're coming off of 288. i don't think the trend is 288. the trend is legitimately 200. i think coming 0 of that's a strong number. i'd probably take the under as the offset this month. >> does that suggest you think the economy is weakening or do you think this is a rare sort of weakness? >> well, it's not rare in the sense that the numbers bounce around all the time. you're coming off of 288 which is way above trend and these things average out.

year to date, 214 right now. last year was 194. the trend when you look at claims is certainly not going down. it's going up if anything. even if it was 112 today, it's a 200 two-month average. i wouldn't view a weaker number as a sign of weakness. >> michelle? >> i looked at that 288 as an offset to the weakness that we had seen over the last three or four months. when you look at the four-month moving average or the six-month moving average, all of the numbers still suggest the trend is just around 200, maybe slightly more. so im50 not sure we will necessarily see a give back -- or we have to see a weak number to offset 288. i think having had the catch up, we'll get back to a number that's close to the underlying trend. >> go ahead. >> no, please. >> i'll switch to ecb after this. >> i was going to go with hours worked. what's the verdict? or do you care? >> it certainly matters in terms of output and income in the economy. the workweek is a 34.5. so i think something around that, if it were to change i'd

go up but i have flat. if you have employment going up 0.2% in the month, hours worked is going up 0.2% in aggregate. it's continuing to chug along. even more interesting is going to be the wage parts. obviously we had a steady drop in the unemployment rate. there's debate about short-term unemployment versus long term. the long-term unemployment rate is still high. the short-term rate is more important for determining wage pressures is back to prerecession levels. we'll see to what extent they pick up. >> let's talk about what the ecb did yesterday. does this change anything? how does it impact with what happens with the united states trade and what happens with our economy as a result? >> i have to say, i don't necessarily think we're going to -- there's much implication in terms of the u.s. fundamental story. you see, we've actually been debating about whether or not what the ecb did was more than expected or the minimum that

they could do, if it's good or bad because now they won't ultimately engage in their end game which we think will be the large scale asset purchases until sometime next year. i have to say, they have the same, it seems like a similar problem to the fed, where they're adding in a whole bunch of liquidity. they just can't get it through to show up in the real economy. so i have to say, i think those efforts will be ongoing there. the u.s. is continuing to expand. the trade situation, exports to the eurozone are trending up nicely. i don't think that this is a material game changer in either direction fundamentally for the u.s. economy. >> although, i just wonder if they are effective in lowering the euro, if they're factor in putting pressure on the euro. does that change the game. >> if you had a dramatic change in the euro, for sure. the yoeuro accounts for 20%.

if it goes 3% or 4%, it's not making a huge difference to us. the stronger the dollar is to the euro, it holes off u.s. inflation. that holds off fed tightening from that perspective. we haven't seen a dramatic market effect to this point. >> that's the funny thing. i've seen it both ways. we saw the your row initial knee-jerk reaction and then offset. i'm not sure -- >> 1.36 again today. >> i don't think people will get what they are ultimately hoping to get. >> is that for the eurozone economy? >> again, i don't necessarily think that this is ultimately going to probably have the intended effect or the effect the ecb hopes. i think they'll have to end up doing more. >> michelle, jim, thank you both for coming in today. >> thank you. still to come, the latest on netflix. verizon streaming, that feud. and be prepared to pay up if you like to have lunch with warren buffett this year. we'll have the details on how much that lunch might cost in just a moment.

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welcome back, everybody. a big weekend for netflix, the second season of "orange is the new black" just came out, just came available about three hours ago. we could have binge viewing this weekend. the debut comes as netflix and verizon are in the middle of a streaming feud. verizon sent a cease and assist letter to netflix demanding that it stop sending messages to its customers. netflix fired back. they say this is about consumers not getting what they paid for from their broadband provider. we're trying to provide more transparency and verizon is trying to shut down that

discussion. >> you have seen both seasons? >> of? >> "orange is the new black." >> i've only seen the first season. >> it came out three hours ago. >> i did not have a screening. >> you saw the first. >> i enjoyed it. >> loved it. >> i'd love to see the second season. i'll be doing that in the next couple weeks. >> you saw "true detective"? >> i did, finally. i was late to the game on that, though. >> have you watched any penny dreadful? >> i watched the two episodes. >> i can't tell whether it's going to get good or not. >> it gets better. >> have you seen "fargo"? >> i have not. well, like ten minutes of it. >> anything i'm missing? >> you're there. >> there's a new "walking dead" knockoff coming. >> zombies? >> it's a virus that causes vampires. >> i watched that, too. >> we're all looking forward to that. >> "the strain" it's called. what are you looking forward to? >> billions.

>> well, that and also the next version of "breaking bad" which is going to be on amc in the fall. >> you saw saul is the star of "fargo" as the backwards sheriff in "fargo." >> i didn't realize that. >> saul is in that. if you want to have lunch with warren buffett, if you say warren it could be beatty, right? we have to say warren buffett. cost you more than a million dollars. each year buffett auctions a lunch to benefit the glide foundation. the high bid is up $1.3 million. today is the last day for bids to be submitted. the deadline is 10:30 p.m. eastern time. lastier's winning bid was $1.1 million. i know what you're saying. he has $60 billion. why not just write a check and

forego the whole process. >> he already gave it to the gates foundation. this say big deal for the glide foundation. i think it makes up a significant portion of their -- >> there are times i feel the same. i don't have $60 billion. people like my high school, i will bring someone in and have them play golf and they can win that at an auction. i don't just write a check either. >> right. >> i think he's in a better position. like i'll do my time is fine. i'll do that for anybody. but i may not write a -- you know -- >> given that we're talking about big money. >> i want to hear this. let me hear this. >> i have a rant i want to go on. a 1 percenter rant. becky has a view. i would love to get the viewers' view, if they want to twitter in on this. i flew business class on the way back from california after pulling the equivalent of an all-nighter. i chose united because they had flood beds.

. >> you're in a pod. >> i have the ear plugs, i'm planning on sleeping for five hours. it's the whole game. i get on the plane, in walks a lovely mother with her 3-month-old, 4-month-old, 5-month-old toddler who is screaming for five hours. >> 3, 4, 5 months is not a toddler. this is a baby. >> a baby. >> look, i have kids. we've taken them on planes. i was not upset with the mother at all. >> that's big of you. >> my question -- my question -- >> did you use miles to upgrade? you didn't pay for a seat. >> my question is whether whether you think baby or toddlers should be allowed in business class. some of the people on the flight were clearly paying $2,000, $3,000 to sit in that seat. you have somebody screaming at you for several hours. >> let's say it's a mother, father, baby and a couple -- they all have to fly in coach? or maybe just put the baby --

>> i don't want to strap the baby in coach. >> maybe put it in the wheelwell. >> fly with the dogs. >> fly with the dogs. >> if i sat there with an air horn next to my passenger next to me -- >> you're suggesting a baby -- >> i hated guys like you when i was traveling with kyle when he was a toddler. >> we all travel with kids. we have to do it. but the question is -- >> i was traveling with kids for work, too. so that i could do my job. >> the question becomes, if other passengers are paying a significant premium for a specific reason to be on the plane -- >> you're out of your mind. to take this stance on national tv, especially when you try to come off as an empathetic bleeding heart liberal. you say they're not allowed in first class, you go to coach. >> then all the lowly people in

coach need to put up with this because they're coach travelers anyway. >> correct. >> when i travel with my kids, we fly coach. >> i can't wait to see this. >> i know better than to take a stance like this. >> we fly -- first of all we fly in coach anyway. >> he may have a point with our viewership. >> why does it make sense? >> i remember having guys look at me like i was the devil. within i would walk on with kyle when he was, let's say, 6 months old i took him out, we went to pebble beach for the show. we were going out for three or four days. there was no way i was leaving him here. i took him on the plane with me. i had a first class ticket. i had a first class ticket but my parents were coming, too. so they could watch kyle. >> i bought three tickets in coach so the three of us could sit next to each other. work pays for first class for me. i had a first class ticket. i went on with the intention of trading with the person sitting in coach so the three of us could sit together. i booked their tickets late.

i went to get on at the beginning, some businessy guy says -- i go to get on when they call for first class. excuse me, i'm first class, you can't get on right now with your kid because united changed the policy. instead of trading it right away, i waited until i got on. sure enough, that guy was in first class. i took the baby and sat with him until they loaded everything up. >> what do you do when people try to use the first class bathroom? >> that's not the issue. >> i can remember my son throwing up in his baby chair and bringing that on to a flight and putting it right down. the entire place smelled of puke and there's -- i'm sorry. i'm traveling. >> it's all good for everybody? >> that's not good but it's the way it is. it's life. >> everyone is supposed to spend thousands -- why would you pay a premium? >> you remember when people were emigrating from kosovo carrying all their stuff in the freezing -- you can't hear a

baby crying in your first class seat? >> no. >> you're too soft. >> we warned you. >> i'm glad you're not a refugee. >> i want people to tweet in about this. >> glad you're not a refugee. you'd be you would be a bad ref you. >> california chrome. we will talk about the race and check the value of winning a triple crown. i know what you're thinking...

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>> how about these horses that just crap wherever they want? we have to do something about them there should be a law. you cannot crap there. california chrome has a chance to make history. watch. when people are watching. oh, great. you're crapping now. >> anyway, california chrome is tomorrow. he's heavily favored. we have seen this before. was it big brown i think? all he needs to do is win at the belmont to win the first triple crown in 36 years. venture, morgan, this would be your first triple crown in your life, right? right? >> yes, it would be my first triple crown. i have been around for some of

the hopefuls in the last 36 years. this track behind me come tomorrow will be jam packed with 120,000 visitors. they are all going to be here to see whether california chrome can beat 10 other horses. take a look at this. this happened just a few moments ago. this is california chrome out for his morning trot with jockey victor espinoza. we haven't had one since firmed in 1978. if chrome wins that could be a huge payday for his owners. in addition to the 800,000 first place purse, the value after such a drought could be oaks poe tphep exponential. his price could double off the track as a stud. betters believe chrome could do this tomorrow. odds overwhelmingly in his

favor. some folks are placing bets just for a piece of history in case it becomes collectible. it should exceed more than a million dollars. companies are placing their own bets. skechers is sponsoring chrome itself. belmont races with a triple crown hopeful typically pulling 40% more attendees and tv ratings boost. we usually see it double with these hopefuls. guys, back to you. >> it's great. great for nbc. maybe it will happen. but it's a longer track. >> i want to tell you about a tweet. an adult doing that crime would be arrested. a parent and child should be the

same. heck, i saved judith here a fortune with discounts like safe driver, multi-car, paperless. you make a mighty fine missus, m'lady. i'm not saying mark's thrifty. let's just say, i saved him $519, and it certainly didn't go toward that ring. am i right? [ laughs ] [ dance music playing ] so visit progressive.com today. i call this one "the robox." alright, that should just about do it.

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time for "squawk"'s race to the employment triple crown, nonfarm payrolls, average hourly earnings. steve liesman saddles up for the trifec trifecta. >> more americans are pulling out of buying a home. >> hold on to your horses. >> and the real money in racing, stud fees. robert frank will tell us how much the owners of california chrome could stand to make if he wins the triple crown. time to place your bets. "squawk box" begins right now.

you're mad at the babies. you are. >> i'm not mad at the fathers. i'm mad at the airlines. >> oh, boy. >> the airlines. >> you know what can happen? >> what's that? >> trying to keep the baby quiet. you are showing people the person i know you always were. >> if you're buying a flatbed, you are paying a premium and it's sleep. my kids love coach. we fly coach together. >> we fly coach too. are you mad even if your in the first row in coach?

>> you remember billy zane? remember how he acted. what? this is you. >> i started crying his tear kael five hours next to you. >> you can follow the rules. >> i'm not upset with the baby. i'm upset with the airline. >> i think if i said that, joe, i would be looking for work. >> it's shut something. >> oh, right. >> good morning, even. leave the babies alone. the poor mothers. >> i love mothers, children, families. in coach. in coach. >> get your own plane. >> andrew ross sorkin is here. steve liesman is here. joe kernen is here. >> grow up.

>> he has people doing hashtag babies in the back. futures are indicated slightly higher. they are up 23 points above fair value. s&p futures up by 1.5 points. of course we have a lot of things that are coming up today. the 10-year note. at this point it is yielding 2.57 #%. it picked up slightly through the course of the morning all ahead of today's job reports. the thursday session saw record closes. the dow transport set a record during yesterday's session. s&p 500 is up and that's outperforming the dow and the nasdaq. that's something it hasn't done since 2005. another market we're following is corn. it is up for the first time in seven sessions, trying to break its longest losing streak since november. a record u.s. corn harvest this year. in other news, the war of words

is heating up between verizon and netflix. netflix told subscribers that verizon was to blame when their video feed stopped. they are trying to shut down crowded networks. netflix accusations are false, they say. >> before we get to steve, i have one more thing. this is for joe. a tweeter says, turns out so-called liberal andrew sorkin is actually a right winger after all. how do you feel about that? >> what i was going to say is i've been working on you. i'm making progress. but this isn't the kind of progress i wanted to make with you. but liesman immediately, the true liberal. he is empathetic. he cares about people. >> i don't know what side he's on anymore. here's the interesting thing. you don't want them up front in business. the people in the back -- >> they deserve it. >> they didn't pay a premium.

>> where does it say the premium is ex baby? >> it is? form of luxury good that the airline is selling. they are selling a luxury good. >> i have seen dogs. >> are they barking? if they don't bark, i don't care. >> but my kids and hi husband have allergies to dog. >> what is the responsibility of the mother or the father of a child. i've been rocking them too. >> bring a bag. i bring a bottle. i would bring everything i could possibly imagine. i'm not even going to tell you -- i can't even tell you one thing i did one time to keep him quiet. >> there are people now imagining. anyway. >> i didn't suffocate him. >> just don't put baby in a corner. >> let's get to steve with a

preview of today's job report, a much on more important issue. >> there's a debate about where the baby should fly and should andrew be able to fly at all. a few say a weak number will change any of it. jobs are running 200,000 average. i don't think everything is at stake here. look at the incomes. 210. to we have that screen? yes, we do. i have no number there. ticking up to 6.4. average hourly wages unchanged. adp came in below at 179,000. last month surprise brings it up to 238. that's the strongest since the recession ended. those surges often follow by modest numbers. other economic data has been helped from a rebound from severe weather. it may have been the bounce back

for the jobs report. economi economists will be slack and wages. here's what nfib reported. small business data shows more firms on that raising wages. though the number is below the levels of before recession. you can see that right there. 22%, 20%. but the official wage data 2%. wages seem to be rising fastest where there are scarcities of workers. wages are an area we will closely watch by the fed. i want to show you one other measure. here's the short-term versus long-term unemployment. remarkably stable. long-term unemployment coming down from 6.7 in april to 3.5 million. did these folks go back to work or drop out of the workforce? that's one of the big debates around fed policy. i could see a number. if it is 160 to 260 i would be

pretty happy. i'm looking tef trend in wages and slacks. that will give me a good read. >> how about somebody who snores the entire flight? >> it is a annoying. >> would you put a pillow under his head? >> no. i would try to deal with it. i don't know what i would do. >> but i put that in any different category. you're an adult. >> that was our guest. i feel bad for the mother. >> you can't see anything to the mother. it's not their fault. >> you just did it on national tv. >> it's not anybody's fault. i don't blame the family. i say if you're an airline and you sell a particular good at a particular price point you have to think about what that means. >> there's a goldman p.r. guy

back there cringing. >> he's been here. >> the new lloyd. the new goldman all in favor of the babies. >> sorry, john. great the see you. love having you here. >> goldman sachs asset manager. >> before we get to your views on what's going on with jobs, do you have a view on this? >> i have absolutely no view on this. >> smart man. duck and cover. >> i thought i would try. >> i have a video on interest rates. >> i thought this was your interview. do you have a business question or a baby question? here's what i said. i go back and forth in the fed.

we taper. we get minus 1% on gdp. they were probably hded back up. if you got europe and they are embarking on this, it's a global world where money can flow freely. if you can't get anywhere near 2.6 then it may not be bad here on 10-year. >> that's one of the things that surprised markets this year, the recognition that it's a global market for capital. and with rates so low around the worrell, other central banks still very easy. the ecb getting easier. that affects the market rates here. that being said, we're still going to be in a rising rate environment. that trend is going to continue. but it's going to take another good number, and not just this number, but the next several

quarters both economic activity here in the u.s. and reduction in slack. and i think you look at those charts, short-term unemployment, long-term unemployment. that's the debate. but you don't see a debate about it lessening and going away. it's how many quarters before the slack is at a point where we need to actually normalize rates. >> it's not just slack. it's wages, correct? >> true. >> we can reduce slack, get that number down. even being in a situation where employees don't have a lot of bargaining power. if we keep printing the 2% year over year wage gains, i don't know that they will be exercised by that. janet yellen said 3% to 4% would be normal wage gains. >> agreed. but for the most part, the wage gains, inflation of all kinds tends to lack. you have the growth. you said yourself that you are

seeing wage pressure in areas where there are shortages. that is supply and demand. the builders are saying it's actually been one of the factors where they can't find skilled labor. we believe there will be wage pressure. if you get 200 k month after month and accelerating to 250, we will see wage hikes. >> there is an army of people out there. all of them have "squawk box" e-mail. many of them have my he so hyper about inflation. we went from 1.1 to 1.4. hyper inflation is just around the corner. is the fed quite so jumpy in your opinion or did they have a little bit of tolerance 2.25 is

okay. or 2.5st okay. >> they are telling you they have tolerance. our view is not that the fed will tighten or become tight in their policy. again, recognition that right now you have policy consistent with a severe recession. zero interest rates, buying billions of dollars in securities. that is a policy not consistent with concern about inflation. that's a policy with concern about deflation. ye is, i think they would be fine. they want inflation to pick up. they might be fine with 2, 2.25 inflation. if we look at something like full employment and 2, 2.25% inflation. you're not looking at zero fed policy or something that is significantly below the average over time which we think is long term in the 3% to 4% range.

>> how long do we look at europe as being in a total -- we have two years of this? >> i think it may even be longer still. that's one of the big factors yesterday. ecb in their forecast said they are not going to succeed their mandate of 2 percent inflation in their forecast horizon. the fed is telling you it's going to happen. ecb is telling you they're not going to get there. they are essentially saying they will be easing for a very long time. that is probably true. we delevered in a painful but rapid fashion relative to what we saw in europe. >> i think the fed feels mandated to lie, though. >> john, thanks. we haven't settled the baby thing. now my other thing is -- >> john, thank you for joining us. >> thanks, john. >> if you want to stay and

continue. work with me. >> sorkin got out of prison. they couldn't keep him in. no psychiatric help. guns would not have prevented this guy from killing four more people. it was the mental illness thing. is it guns or the mental illness? we have to settle that. i'm kidding. >> jobs. the struggle to pay the mortgage "squawk box" returns with that and maybe more information about babies on plains in just a moment. in a world that's changing faster than ever, we believe outshining the competition tomorrow quires 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

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another wild week on "squawk box". we had a piketty, a concernity squawk on the finity. kwreupd indy 500 champion. >> let's talk about mortgages. 52% of americans have made hard fiscal challenges. the mortgage bankers association and form or head of the fha. how do we fix the problem, my

friend? >> well, we know what the problem is. we have just come through the worst housing crisis since the great depression. many still believe there is a worse to come. part of it starts off with the headlines you opened up with on the show today. every time you hear the next shoe to drop to get into recovery it reaffirms there is struggle. foreclosure inventory is way down. take that with student loan debt. many americans having a hard time paying their rent and mortgage bills. and collectively, we still have a way to go in this recovery. >> what is the answer? longer term, if we get rid of fannie and freddie, i don't know if you think that is happening, how do you structure it? >> we know for certain in the peak of the collapse, if you

think about mortgages, there needs to be some liquidity provision when the private markets exit. we saw it in a glaring way. as well as the private hraebl securization effort. there are a lot of arguments on both sides. we need to have some form of liquidity for particularly bad times when the private capital, when they decides it's not worth the risk to be in the housing system. >> i don't know if you think this is a radical idea. what if it's not so bad people are renting? should we consider renting a bad thing? in some countries it is a great thing. >> we know home ownership was pushed to an extreme. that led to the bubble. it was unsustainable. we have been through the wrath of that aftermath.

you hear secretary donovan from hud talking in recent days about the shortage of affordable rental housing in urban where the jobs are. there are some real economic variables that are valuable to home ownership that help communities and families live in a more stabilized environment. >> david, you are talking about long-term fixes. people are talking about rent inflation and things of that sort and the sort of immediate problem we face, what would you do right now to impact the market the next 12 months if there was something you could do. >> well, i think this study that you referenced, the biggest challenge we have right now is lack of confidence in the markets. a lot of the research from the study doesn't relate to the facts. interest rates at the low end of

historical cycle and not to be there indefinitely. they are at the low end of the cycle. and so the opportunity to get the markets kick started as to somehow come with increases confidence. at the core of all of this, jobs are the core value proposition. we forecast 2015 to be a far better year than 2014. this is just going to be a hard year. at the center of this, guys, is the student loan debt problem. that's just one variable. it has gone from 200 billion to over a trillion dollars today. the average college graduate, the first time home buyer $35,000 in student debt. >> david, thanks for join us this morning. jobs is the right answer. thanks again, david. >> great to be here. >> still to come, one industry

giving job creation a much needed charge. and there's a lot riding on california chrome, a lot more than just history in the making. how about a crazy stud free. we uncover the real payday from tomorrow's race. time now for today's lack trivia question. how much does the stanley cup weigh? the answer when cnbc "squawk box" continues. lac! so this is who you brought to help us out? oh yeah, he's the best. hmm... he doesn't look like he's seen a tool in his life. oh, he doesn't know anything about tools. aflac-ac-ac-ac-ac-ac-ac! but when i broke my arm, he lent a hand. he paid my claim in just four days. four days? wow! it's no accident - aflac pays fast. find out how fast at aflac.com and remember,accidents don't hurt as much when you have aflac. better. you wouldn't have it she any other way.our toes.

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now the answer to today's aflac trivia question. how much does the stanley cup weigh? 34.5 pounds. >> when we return, jobs friday goes nuclear. mary thompson is at a power plenty in south carolina to find out where the jobs are. oh, boy. that's a good look for you, mary. >> thank you, joe. by 2018, 20,000 jobs will be available in this industry and a couple of hundred are opening up here at the summer nuclear

station at jenkinsville, south carolina. that story coming up after the break. it's more than that... ...it's perfect. introducing curved ultra high definition television from samsung.

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welcome back to "squawk box", everyone. in our headlines this morning, we are an hour away from the are release of the may jobs report. expecting 210 non-farm jobs. unemployment rate is expected to tick up to 6.4% from april's 6.3%. health care got goff website is going through a significant revamp. parts are behind schedule, raising concerns there could be more problems with open enrollment. keeping an eye on gap. the parent of gap, banana republic and old navy saw a little bit above the forecast. >> in jut about an hour, we'll know how many jobs the economy

added. now we want to take you to jenkinsville, south carolina where one company is hiring for a project that won't be up and running until late 2017. mary is joining us now. look at mary. >> hey there, andrew. i'm here at the b.c. summer nuclear station. behind it, below me you can see one of two nuclear reactors being built on this 240-acre site. these two reactors are the first two being built in the united states in 30 years. at the peak of construction it will employ 3,500 workers. since it broke ground, south carolina electric and gas has been focused on hiring a permanent staff to run the reactors. here's jeffrey archie. >> we'll be looking for folks that have pack grounds in physics, training as engineers.

we'll be looking for maintenance workers, mechanics, instrument and control techs, electricians and chemists. >> nuclear energy institute says 39% of the industry's workforce will hit retirement age by 2018. that means there will be 20,000 jobs to fill. now they have filled 450 of the 800 positions. drawing from local high schools and two and four-year colleges. it started early in 2009. workers like that you see in the video need to be trained and licensed. >> we have really focused on the front end to bring in training instructors, getting them qualified. now we are also in the process of bringing in engineers, maintenance workers. >> depending on the job the

starting salaries will be about $52,000. they wouldn't say exactly but only that it offers full benefits and is competitive. it is striking a partnership with local schools to feed employees into this facility. i'll have more on that part of the story coming up on "power lunch." back to you. >> thank you. thank you very few. if you do see big bird, run. he could be -- >> you think it could be a mating call. >> he could be smitten and just get the hell out of there. >> okay, joe. >> a true progressive. there wouldn't be a baby to worry about because these

irresponsible parents should not have had another carbon emitter and al gore is flying around private to spread that word. >> wilbur ross will join us next. a horse is a horse of course unless that horse can be a stud. big financial. this is going to be big too. how many things are we going to say about this. big stud fees. find out why the real money is in stud fees. looks like superman.

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introducing curved ultra high definition television from samsung. welcome back to "squawk box". look at the futures. they are likely to change. going up or down. dow jones looks like it would be up about now. market would open 24 points higher. nasdaq up a little over 3.5 higher. we have corporate news. u.p.s. now naming a chief operating officer david abney as its new khr eo. scott davis will step down.

the incoming and outgoing ceos will be "squawk on the street" at 10:00 a.m. this morning. >> billionaire investor wilbur launch is launching a new investment vehicle. special purpose acquisition known as a spac. joining us right now with the details is the man himself, wilbur ross of w.l. ross and company and chairman of w.l. ross holding corporation. wilbur, great to see you. >> good to see you, becky. >> this is the first private equity spac? >> the largest since the financial crisis. it may very well be the first one. >> and it's going public today? >> yes. we priced it last night. and it will start today. >> what was the price last night? >> $10 per unit. >> you can use the stock as a form of how you buy the

companies that you acquire? >> with stock we're cashed. it raised all this cash to begin with. >> does it trade like an etf, supply and demand? it's not mark to market. >> it might trade a little premium. might trade at a little discount. >> spacs historically have been somewhat controversial. the past couple of years they have done a lot better than some of the ones you have seen from. how much time do you have to make a deal? >> two years. the money is escrowed for two years. >> do you worry? one of the cautions is what happens if we don't find

something? >> then people get their money back. >> we front ended the fee. so every dollar of the investor proceeds is intact. >> why do it this way rather than try to raise money privately? >> well, this way the company is public the minute that you acquired it. usually when we buy something, the next is how do you get it private. here you have the acquisition done and it's final. >> and this is based auto your reputation, i guess? if you had a guy with six startups and it all went bankrupt, he couldn't raise money very well. >> hopefully the public would have a little discrimination. >> people know you have a discriminating value. how long is your history of

doing things like this? >> oh, for a long time. >> we're not allowed under the rules to allow preidentified target. so it will be the normal things that come to us. the areas we have been operating in are logically where we would straoeu to find something. >> how do you differentiate between what you would want to buy for this fund versus your own private fund? >> that's one of the issues we have dealt with. we have two funds that are open to buy right now. each of them has been granted an option to buy $50 million additional stock in the spac at the time when a deal occurs. so that means there's no corporate opportunity and no

cherry pickng. >> no category to invest in? it could be any category? banking, real estate, or things you have been in before. would we be surprised if you beauty a technology company? >> i would be surprised if we bought a technology company because that's not what we do. >> remember blind pools. they would buy something. they would do a reverse thing. that's a way to go public. i could see how people would look at this and immediately raise an eyebrow. >> well, it all depends on what goes into it and how well that turns out. for example, kennedy wilson of some years ago went public through a spac. and strangely enough, since we worked with kennedy wilson in the bank of ireland, we had tried to put american home mortgage into that very same spac that they put their company into. >> i thought that was a girl

band. kennedy wilson. >> wilson phillips. >> kennedy wilson, different. >> yeah, different. basically a real estate company. >> let me ask what the ecb did yesterday. i know you have been looking at europe as a place to invest for a while. >> not only looking but -- >> actively investing. >> sure. >> go ahead. >> i think it's the a very interesting experiment and i think it will will work. the idea of negative interest rates. finally some big central bank has done it. it was earlier tried in denmark. and it seemed to work fairly well there. this is the first time a big time central bank has done it. we recently went into euro bank in greece. that was our first foray into greece. and i'm fairly sure it's going to be very helpful to them. >> what other investments do you have? >> we have bank of ireland.

>> was that the first one? >> that was the first one. and that has worked out very, very, very nicely. we're in virgin. we backed richard branson buying northern rock from the uk government. it's private, but it's doing very well. we have the largest railcar leasing in europe. one in germany inburg called gtg. >> when you say you think the negative interest rates will work, the pushback on that, the banks are being told by regular lators they have to keep permanent. >> that's exactly right. that's the same kind of contradictory situation we have had in the states for quite a while. we put tarp money and take it

back by fining them, which is apec way to deal with the banks. the reason it may very well work is it worked well in japan. by working well to me means changing the expectations of the public about inflation. japan had gone through three decades of deflation. suddenly mr. abbott came along through very tangible actions, changed the whole psychology. i think that's what's needed in europe and frankly here, is to change the psychology. >> so what does that do to the investing environment in europe? are you more likely to make additional? >> i would think so. because the more things that mr. draghi has done to put a floor under how bad things can get the safer it is to invest. >> wilbur, we want to thank you very much for coming in today. >> thank you. thanks for having me. good to see you. >> good luck. >> thank you. >> in the meantime, u.p.s. has

named chief operating officer david abney as new ceo. scott davis will step down. joining us on the phone is jeff sonnendeld, a cnbc contributor. what do you think of this move? >> i think it's fantastic. almost remarkable and newsworthy for the fact that it's just not remarkable in the way things used to be done. to promote from within somebody who has been tested through so many different kinds of key responsibilities. it's great. we just don't have the boardroom battles and drama, whether it was microsoft or g.m. you don't have hostility between peers. there are a lot that get rumored into who the next successor will be in a place like this. >> so this was surprise to have him do it?

>> yeah. there were self internal candidates. there is general consensus as to who should win. this guy is theigight guy. it's just universal enthusiasm that david is the guy. >> what's his mission at this point? what does he have to do? >> in the of the company, nobody gets more than a six-year term in office. everybody else has about five, six-year term of duty. how much can they get done? a lot. they go through expansion and digestion. they go to more places right now. the united nations recognizes 200 countries. but the technology story is pretty incredible. logistics and the rest.

they are going through consolidation. they go everywhere in china, for example. but nobody is loving the internal domestic of china. it's been an incredible story. they really control that space. a lot of efficiency and digestion to take place now. >> sure. the tkphrebl challenge is understanding a lot of the cross border legal frictions and things. you look at the fortune 500 countries. 15 of the top 60 have retained this. comcast i'm happy to say is one. >> jeff, thank you for your insight this new appointment.

>> coming up, we will switch the folk us from jobs from snakes on -- babies on a plane. we'll help you get ready for the numbers of the week. bernstein, kudlow. that's jared bernstein. and from economic studs to thoroughbred studs and anchor studs, how much is california chrome really worth if he becomes a triple crown stud. cnbc and robert frank will join us with a preview some some horses get $150,000 per stud session. we'll take you inside the breeding shed with the famous stallion. viewer discretion is advised. in a world that's changing faster than ever, we believe outshining the competition tomorrow quires challenging your business inside and out today. at cognizant, we help forward-looking companies run better

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>> the air on a plane gets recirculate. viewer stregz discretion is advised. if california chrome he will be the highest paid, sur passing tappit. >> that's really his name, tappit. >> yeah. is that a name or what? >> did he ever race?

>> oh, yeah. >> this is a really interesting story. it's from breeding. if chrome wins the triple crown, he could double to $50 million. he will never edge out the current leader, tappit. he is valued at more than $50 million. his offspring have the highest earnings. $150,000 per stud. the reason chrome is worth less is pedigree. he's a great racer. you in the horse world, it's all about proven blood lines. chrome's genes not that remarkable. his life as a sire for hire would be nice. golden sweet hay and lots of horsing around, rolling green

meadows. we spent the day in the life of a very expensive stud called factor. >> very dangerous business breeding 1,200 pound horses. it's big money and big risk to both the mare and the stallion. >> you just saw that. >>. >> chrome is going to look forward to a lot of mares lining up at his barn door. we'll show a lot more of that on tuesday. secret lives of the super rich. that's the secret premier. >> do the horses have to be attracted to each other? >> there's a teaser horse. >> teaser horse. >> there's a teaser horse. >> is it like a fluffer? >> it is. it gets the horse ready. we show all of that. gets the horse ready. but he never actually gets to do the deed.

he will tease mare. but the sire comes in. >> wow. >> fascinating business. >> that's like sting. he never even gets close. so he's a very hopeful horse. again, there's one horse that gets $300,000 per session. can you imagine that? $300,000 per session. he has a great track record, great blood line. his horses have won a lot of horses. the war front is the key. it's all about flood lines. chrome could be the great racer. he'll just never be a top earner.

>> i wonder how much we are from identifying the genetic predisposition of being a great horse? still doing it through breeding? >> you would think they would get better without horses. it's still very unscientific. values all over on the place. >> they will start figuring out what the genes are. >> top studs go 150 times a year. >> you mean they do it over 150 times a year? >> that's like every other day. >> biannual versus semi annual. >> i want to come back as a stallion. >> the final countdown is on.

the number of month readied to round the corner in the final stretch of "squawk box". and the business of belmont. a quick note. squawk blog is up. another wild week. check all of it out at squawk.cnbc.com.

and they're off. steve liesman jumps out to an early lead. his economic endurance could make all the difference. hugging the rail is jared bernstein. neck and neck on the right-hand side, larry kudlow and rick santelli. they always bring their "a" game. down the stretch they come. and it's the dark horse, the long shot, zande. can he do it again? brynning up the rear, joe kernen. it's going to be a photo finish. as we get ready for the most important number of the month. play the "squawk" odds. it's post time for the jobs report as the final hour of "squawk box" begins right now.

>> welcome back to "squawk box" here on cnbc. i'm joe kernen along with becky quick and andrew ross sorkin. are you going to be with us the whole hour? >> i'm here for a while. >> it just said guest host. was this your hour? does that explain things? larry kudlow is here for 30 minutes. and you all know larry. great to have you, larry. >> great to be here. >>. >> looks good. >> i feel great. >> we are going to look at the markets. equity futures have been indicated higher. dow futures up by close to 16 points. s&p up by a half. nasdaq by 3 points. overseas if asia, if you watch

the markets there overnight, they closed slightly lower. we are talking seriously slightly for the nikkei. down 2 points. half percent in shanghai. there are green air roys. the biggest gainer could be in spain, 1.4% for the ibex. joe? >> in less than 30 minutes, we will be getting those nonfarm payroll numbers. jobs friday panel of experts. joining us on set is larry kudlow from orlando. mark zandi, chief exist at moody's. and jared bernstein, senior fellow on budget policy and priorities. and former chief adviser to vice president biden. cnbc contributor. do you think 210 will be tough to do? are we surprised? >> i'm a little bit on the under. yes, the adp.

i'm looking at the isms and the employment components were below. both of them. manufacturing and services were below the fourth quarter level. i didn't like that. i don't see a steamy comeback from the winter. so i may be absolutely 100% dead wrong. 100,000 error factor in these numbers. it seem to me even while the unemployment claims are low, i didn't like those employment things from the isms. so i'm taking the under. >> zande, where are you? you didn't blame it on some extraneous factor. a lot of people wrote in they hadn't seen that before. it was due to some extraneous factor. was it disappointing? maybe the stimulus finally wore off. >> you can blame jared for that.

waoeupl on larry i think it will be on the soft side. >> i'm not hearing mark. >> jerry can't hear me apparently. because of the adp and the ism survey. this monthly data goes up and down. monthly job growth is probably north of 200,000. i don't think he will see it this month but we will over the course of the next several months. >> did you finally hear that? >> i did. i heard the end of his comments and the number. we're all low. the last i checked was 215k on payrolls. my views are similar. who brought the 100,000 error

rate to the table. which is really important to think about. we are all right in the margin of error when you are talking plus or minus. the weak gdp. i know there's weather. i know it was worse print in the economy. last month will get resraoeuzed down a bit and will regress back to the trend which is somewhere between 200, maybe 230. extraneous factors might drink us down to 195. >> there's a remarkable agreement. one number i'm keen to when i get my other labor market experts in, waeupls. average hourly earnings. for two reasons. number one, incomes by middle class people.

holding back recovery. the inverse relationship, stock prices rising as wages stay low. >> right. >> i don't like that. i'm big bang growth reagan tkpwaoeufplt i want to bring back the '80s and '90s with reagan and complain. low wages keeps profits high. so from macro economy and the stock market, i'm really interesting in hourly earnings. >> what's the solution? >> grow the economy faster. with all due respect, i would like to abolish the corporate tax. and the beneficiaries of that abolition of the corporate tax would be mostly wage earners. >> one little thing you could do at the bottom of the agenda is

to kick up the minimum wage a bit. a number of states have done that. i know it's not most popular idea. i want to echo the point on wages. i was writing my preamble. i will look carefully at wage growth and labor force participation, which i have to believe is going to bounce back from the sharp 0.4% last month. >> were they wrong when you say raise the minimum wage $2 or $3. half a million people make an extra $80 a week and a million people make zero because they are unemployed. that math works well for you? >> let's cite the -- >> you pay them $2 more with these crappy jobs? >> stand down. >> kudlow is right.

>> i want to inject a fact if that's okay. >> approximate no. >> the congressional budget office. i think you said half a million people get a raise. 24.5 million people would get a raise from the increase in the minimum wage. >> jared, complete the paragraph, please. >> 500,000 job losses. >> among the poorest of our breathe republican. incomes will will go up. but minimum scales up all the other wages. that's no way -- >> didn't you just say you wanted wages to go up? >>. >> no, wait. i want jobs to go up.

>> let me be the arbiter. >> if you lower taxes to zero, why are you convinced you would get either more jobs or higher wages when if you look right now in the corporate coffers, there's $2 trillion in cash sitting there. why has that changed? >> let's go through this. number one, $2 trillion is mostly overseas. they don't want a double tax on foreign profits. we have to get rid of that. that money could come right here. ceo of fedex taught me this. companies don't pay taxes. they collect taxes. it is offset by a pass through for lower pages and higher consumer prices.

boston university, a smart guy, he's republican. abolished the corporate tax. big winner, age earners. >> let's say a company is paying $10 billion in taxes annually. i'm just making this up. what percentage of that comes back effectively to either the wage earner or employment. >> that becomes the political dynamic. >> not all in favor of investors being rewarded. capital is very important. thomas piketty notwithstanding. capital is very important. if you look at the work and greg and other distinguished economists, wage earners are the biggest gainers from getting rid of the corporate tax.

>> why can't we do both? >> if that were the case wages would be going up now. >> both of those things would be very positive. >> mark zandi, this is a rare kudlow governmental action. very rare. mark my words. you may never hear this from me again. if you want to help the low, low end of the wage side, i would give a transparent government wage subsidy trance parent on the budget and could be targeted. but my number one thing, a polish the corporate tax, grow the economy, create wealth. get 4% growth. come on! >> you might get by patterson support if you supported both at the same time. >> we'll hear more from these

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welcome back to "squawk box", everybody. we are just about 15 minutes

away from the jobs report. ahead of that watching the equity futures. dow futures are up close to 18 points. s&p up by half a point. >> walmart's annual meeting ready to kick off. lots of issues on the docket. sarah? >> andrew, first, the most important issue. the mystery guests. our performers have been revealed. harry conic jr. the host. pharrell just opened for musical entertain. the this is an annual tradition of pilgrimage for walmart shareholders and associates coming in to bentonville. very celebratory. gives you a sense of the mood inside. it's like a giant rock concert. but despite that fact the picture is not that rosy for shareholders and the business. walmart has found itself in the center of the wage debate in

this country. you saw small union-backed protests at various walmart stores across the country. workers demanding higher wages. it is certainly one of the issues. you are not going to hear about that from executives inside or from the associates that have come in here in droves to this meeting. in fact, we had a chance to catch can up with some of them as they were entering the arena. >> it's nice to work for a company that you can leave and come back to and they welcome you back to open arms. >> it's my first time to get experience. it's going to be just about the experience. i want to know everything, basically. >> of course. i don't think everybody is satisfied about their pay. you get compensated for the work that you do. walmart takes care of you. >> besides the good feeling, if

you look at the stock chart, if you look over the past five years, they missed half the rally. walmart up 50% versus 100%. sustained slower u.s. traffic. that's why you will hear executives today inside talking about initiatives, order online. they are trying to bridge the gap between brick and mortar and digital. beyond just the entertainment and the fanfare, you can tell there are really serious issues that executives and shareholders will want answers to. guys? >> sarah eisen, thanks for that. coming up next, our economic thoroughbreds are ready to step into the starting gate. final predictions before the bell sounds. later, the ceo of the new york

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yes.... geico. fifteen minutes could save you... well, you know. welcome back to "squawk box", everybody. in honor of the belmont stakes, post time for final jobs predictions. horses in the gate and ready to go. here are the numbers.

rick, let's start off things with you. your number, sir? >> 184,000. 1-8-4. i don't do unemployment rate. it's meaningful at this point to me. >> next up is steve. >> i have a new model. >> oh, no. >> it's scary. this one is on the other side. if you do 200s, one-fifth of the model is now incorporated. >> adaptive. >> irving fisher. >> one of many who adapted that. >> what happened before. 1233 is how you would complete the series. >> what do you get? what's your number? >> 223. >> that's well above. jared, what about you? >> i'm at 195. margin of error. 100,000 plus or nine us.

195. by the way, i have had the three-month average in hine for a long time. >> steve, i forgot to ask you -- >> i don't have one. >> mark, let's hear from you. >> steve should know most economists use that exact model. >> i was trying to do something different and better. >> i didn't take that class in college, irving fisher. i think it's 185. i know the unemployment rate ticks you. there was a very large decline in the labor force. we'll get some of that back. >> larry, how about you? >> i had ed tuftk as my statistics guy when he was still speaking at princeton. i was his first student. i think i'm at 190.

was it up there? 190. >> the forecast changed. >> i'm taking the under versus the consensus. >> unemployment, do you ever go there? >> i don't ever go there. i hope to remain employed, myself. >> you said it's the average hours worked. >> average hours worked, private hours worked, and average hourly earnings. to me those are the three i'm keen towards. participation rate is also very important. but the wage rate is so important. not only for consumer spending and income but corporate profits. >> what would you like to see year over year in terms of average wage growth? >> i would like to get it up past 4%.

>> because it's been around two, if that. >> i know. the only good news is the broadest inflation measures, as you know, are coming around 1.5%. >> right. >> we're a long from wage growth. we have a lot of slack. at least a couple percentage points. >> if you look at the boom in the 80s and 90s. >> you're going to have hassan on later, i noticed. talk to him about an interesting way he is been talking at goldman. trying to push the fed to actually target precisely this measure we're talking about. wage growth as a better indicator of job market slack. it's an interesting and valued fact. >> 40 years ago, 50 years ago.

when was 1968? his presidential address in the american economics association said in short, monetary policy has no lasting impact on jobs, unemployment, and the economy. and so i come back to uncle milton. money controls inflation. you want to produce a better economy? give it more incentives, lower marginal tax rates, do something for entrepreneurs, and stop the anti-business rhetoric from the white house. stop the destruction of the coal industry. stop a lot of things that are going on. it's not a military issue. it's a fiscal issue. >> that holds in the long run. the short run, monetary policy makes a big difference. >> long run, you're right. >> focus on taxes. you have to focus on regulation

and the cost structure. but in the short, intermediate term -- >> i don't see it. >> we have to go in just a moment. we have to make sure we get pack in time for the incomes. very quickly before we do, i would like to hear from you. do you think the market can move in a big way? >> if this number is a miss, i suspect that, loon with the european rates will push us under 2.5% in the 10-year. if this number is robust and it is not faux based on participation rate, it could be the difference between 2.75. so that is a big deal in my opinion on the interest rates. >> steve, you say you don't agree. >> i think the market has a tolerance for this number. the bottom may be 150,000. pretty comfortable with the trend being in the 200,000 range, plus or minus 10,000 here

or there. >> stick around. incomes right after the break. full market reaction after this. squawk will be right back. ow 'e. ♪ it's beautiful. it's more than that... ...it's perfect. introducing curved ultra high definition television from samsung.

welcome backing everybody. just a few seconds away from the employment rate. futures shiitely higher. this comes after the s&p and dow both closed at record levels yesterday. we get to cnbc's hampton pierson. >> up 217,000. may non-farm payrolls increased by 217 jobs. unemployment rate is 6.3%. average hourly earnings increase by 0.2%. the revisions, no real -- no change at all in march. april revised downward by 6,000 from 288,000. previously reported to 282,000 jobs. private sector jobs increased in may by 216,000. leading the way, job gains in professional and business services up 55,000. health care and social services

also up 55,000. food services and drinking increased their employment by 32,000 workers. and trapgz and warehousing saw an increase of 16,000 employed. job losses, federal and state government, 10,000 combined. half at the federal level were postal workers. unchanged 62.8%. long-term unemployment unchanged. 34.6% of the total unemployment numbers if you will. the labor department also telling us that with the job gains in may, payroll employment now exceeds prerecession levels. employment fell by 8.7 million jobs january 2008 to february 2010. back to you guys. >> hampton, thank you. let's get back to our jobs panel for more reaction to the incomes.

steve liesman and mark zappedy at moody's analytics. senior fellow at the center on budget and priorities. and our very own larry kudlow. steve, you get to go first. you said 222. came in 217. >> just so u.n., my tolerance is 16,000. >> standard deviation. you are due for a good number. >> thanks for reminding viewers of that. my permanent self deprecation was not enough for you. >> you were off by 100,000 the last time. >> 210. >> that's good. >> let me give you actual numbers rather than tooting -- joe not tooting. or whatever joe does. >> average weekly hours unchanged 34.5.

manufacturing up a bit to 41.1. earnings per hour up 0.2%. and looking down, it looks like job growth was pretty broadly based. construction up six. is the only negative number is information technology. we have seen this leisure and hospitality sector has done well. up 39,000, which is a good number. retail is something we followed down a bit from the big numbers in april, which might have been easter related and seasonally adjusted. up 12,500. >> 12-month change on average. >> 12-month change. very important. i'm waiting for it to come up on my ipad but it's not coming up. >> the market reaction.

futures picked up a little steam. how about the 10-year? >> of course the stocks will pick up steam. >> we debate why interest operates move. how do you get new highs all the time on the mediocre numbers. stocks are up. rates are not up. 2.57 on the 10. the number came out. it went 2.58. 2.59. 2.57. right back with to where we started. this is the lowest yield close all the way up to two weeks ago, february 3rd. if you watch this level, you will always stay out of trouble. the the only people that need to be tame, the federal reserve. bank of japan, bank of england and european central bank. >> i had a a chance to talk to you in a while.

i love to talk to you. ben bernanke at one of these $400,000 henge fund private dinners. >> wait a minute. i think they are only 250. they may have to change rates to get his rate up. >> okay. i thought it was was closer to 400. let me just ask you. his statement which got into the press two, three weeks ago, the fed funds rate, normal equilibrium rate will fall below 4%. i thought it was a gigantic piece of news which continues to move the markets now. >> i happen to agree with it. if we listen to him on subprime we would all be in the go go os. ben bernanke should make all the

money he wants to make. in terms of interest rates being tame for a long time, i agree with that. we are becoming japan. >> if i could interject, the year over year average hourly earnings is up 2.1%. so that's just about the trend we were talking about earlier. the labor force participation rate unchanged. the unemployment rates ticks up. i would argue that the slack story really hasn't changed. i'm glad that the report hit expectations. that's a good thing. this is not an of the moon report. and slack is as it was. >> this is not a "game change"er. >> can i take the other side of this? rick said this was a disappointing -- i can't remember the exact words he used. 220,000 jobs. >> 222. >> that's probably the underlying trend in job growth

now. >>. >> 256. >> any other time, in any other time that would be considered a very good job market. just to give you context. if the labor force was growing at a normal pace, that is double the rate of job growth necessary to get unemployment moving itself. agreed, we have a lot of slack. we need more jobs. we have to get unemployment down. but we have to put this into context. 220,000 jobs is -- >> first of all, what's the quality of those jobs? >> they are good and getting better. >> what's the complexion about full time and part-time. i'm sorry. i think it's mediocre because of the unbelievable efforts we're putting forth to generate 217,000. >> we have an unbelievable recession that took unbelievable

efforts to get out of. >> because like most congressman made bad policy in the 90ss and it came around to bite us in the butt. >> wait a second. let's get back to second. we would definitely be doing better if there was better policy. i think coming from mark's point, the question that i have had in my mind is actually a job doctor underlying 220. it ought to be enough to close the slack in the job market. i haven't seen much of that. >> think back to 2,000. we had peak unemployment. we are now 6.3. rock solid 6.3. >> people aren't going to work. haven't worked. will never work again.

>> what's the year on year change? earnings are 2.1%. >> index of hours worked. >> two times two. we're look at 4% nominal gdp rate, aggregate income of 4%. that's all we have. nothing has changed. this number doesn't change anything. this number says, yes, there's more progress on people working. no, there is no takeoff. no dramatic takeoff after the winter weather in the first quarter. >> that was a big fiberama too. >> i think the consistency of the 200,000 is good.

it is a separate issue from the idea that the economy itself, larry, has been, as you said earlier, the 12 month year on year is going to be bigger. >> you bet you. >> three-month average of 240 going into the number, haven't recalculated it, one of the best we have had. >> we're not getting the business capital investment long-term play that we deed to create jobs. i think that is a function of tax uncertainty. i think that is a function of regulatory uncertainty. and by the way, at this point, i think the fed has got to finish getting rid of qe and they have to start thinking very hard about normalizing interest rates as per the job payroll. >> larry -- i mean, mark and steve, you can't be comfortable with getting back to trend.

it would be good growth if we closed output caps. >> it is a potential. that's the thing. we should be doing the 125, 150. >> we're 8 to 10 million jobs below trend. it's a huge hardship. >> we will see you all again soon. rick, steve, larry, jared. >> when we return stories making headlines outside the job report. then the ceo of nyra on this weekend's belmont stakes. can california chrome become the first triple crown winner in 36 years. the business at belmont and much, much more as squawk heads into the final stretch.

welcome back to "squawk box" this morning. take a look at futures after the jobs report. see how things are setting themselves up for the morning. looking good. dow opened up 42 points higher. s&p up a little over 3 points. shares of hertz global are tumbling in premarket trading. restating its financials for the past three years after an internal audit. it can't be relied upon. hertz replaced its chief financial officer. and ups chief operating officer

david abney will become ceo. both will be on "squawk on the street" to talk about that transition today about 10 a.m. this morning. coming up, jim cramer reacts to job reports. a very big week for the belmont as california chrome comes to town and gets ready for the triple crown. as we head to break, take a look at the futures one more time after the jobs report. green arrows moving higher. nciae financial noise financial noise financial noise

welcome back. down to the new york stock exchange. jim cramer joins us now. the good news is that was a little better than expected jobs report. >> yeah. it's difficult to monitor the bonds and make judgment off the employment numbers. even though you may think this was better than expected, don't take your cue from the bonds, thinking it's better than expected. i think it's good. i know it sounds political but

something issing. it got the jobs to where they were. >> i think profits are good. i was listen to go larry this morning. we taxed profits twice in this country. it's sound to radical. it would be great for the wage earner. it is not unusual at all. this would tell you we could really get jobs going if we got rid of corporate tax. >> it's true. people use it. they totally -- you know, they distort exactly what it means. the whole citizens united is corporation a person. for whatever reason they would rather tax them more. >> they probably want to tax oil companies at 90%. it is responsible for most of the hiring in this country. people should understand. look, tax is complicated.

you are taxing money twice. that is not something they do in other countries. and our corporate tax rates are too high. >> do you hate babies? don't you love 5-month-old babies. don't and a mother is trying her best to quiet that baby, don't you have some compassion. do you think that baby should ride in the wheel well? >> i have compassion and noise canceling headphones. >> sorkin wants this baby -- >> if you have ear plugs and noise canceling headphones which i do, what do you -- oh, showing the picture. >> look at that. >> there it is. >> that happened to you. i think we have another one. the baby -- >> a reason why that didn't happen to me, know why? >> where's the other one? >> look at that. >> looks like coach to me. >> he's got a fire truck with him. got the fire hat on. you're trying to talk. you're trying to talk to the flight attendant. >> i lost points on this debate

this morning. not to be upset with the family, i have family and kids. >> true 1%. >> the airline -- >> i think that the airline if they are going to charge a premium for specific type of service, it should be -- it should come with the service. >> but you really think -- >> not interrupt. >> gag for the child? >> force them to coach and all the coach people have to listen because they're in coach. >> my knees are forced into coach but if i can't -- if i pay the coach fare i live in this awful situation but i do it all the type and that's what it is. >> you didn't pay fort ticket. >> i didn't pay for the ticket but still think -- >> makes it that much -- >> kwh come on. >> wants to bring back steerage on cruise ships. >> jim, want to have a conversation about this some. >> i think jim is gone. >> this is too high risk for me. you should fly spirit air and they probably charge babies $20 and crying babies $100. spirit has probably a pricey crying babies. >> jim is smart.

>> doesn't want to take this on. >> people know. >> no. >> honest people know. i've been telling him that. they thought you were an empathetic guy. >> i'm not upset with a family. i get the family. if i could buy the ticket by the way i would. i'm saying the airline shouldn't allow it. there. >> jim is like oh. >> oh, man. >> digging himself in deeper. >> the hole keeps getting deeper. stop talking. the air is getting -- >> jim, we will see you in a few minutes. >> see you soon. >> thank you. >> i'm in shock. usually you're smarter than this. the race fans, they are ready for the belmont stakes. what's the value of a triple crown to the new york racing association? we're going to speaks to the ceo about this weekend's events and the horses competing. that interview coming up around the bend after the break and a quick note, the latest talking squawk blog is up. another wild week in the books from picketty to foot massages

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the bend, here i am. snoets i'm back in the saddle again ♪ >> tomorrow belmont's biggest stake of the racing year. california chrome looking to end a 36-year drought of triple crown winners. joining us is christopher kay, ceo of the new york racing association. someone wrote in a secret pic to me the community something or other. i've sgots nightmares of big brown finishing last. is it really going to -- we've got a good shot? >> california chrome has a great shot at making history tomorrow at -- here at beautiful belmont park. there are no nightmares in the scenario. >> last year, i wanted to come. what was the name -- i'll have another, i think, and we went out -- >> i'll have another, right. >> we went out on friday and then scratched and like, i just can't believe you can do that to nbc or to racing fans, but we still went out. i had the greatest time at

belmont and it's not -- you can win money. you actually can if you just look at the odds and favorites. it's exciting to be there. i think racing still has a pretty good future. >> thank you very much. we feel the same way. we've taken steps to make this year more fun then when you were here last. we have ll cool jay to perform to us, one of the stars from the hit broadway musical "wicked" bernie williams performing in our new champagne room, lots of fun things for people to do throughout the day. >> it is awesome. and you can get really close to, you know, you can see where the -- what's that area beforehand and after where they're walking around? you can get up close and personal with the horses. it is amazing. we don't let andrew wear a nose strip on the set here because we think that would give him an advantage. >> fair advantage. unfair advantage. like oxygen to the brain. which we think is a problem.

there's not. but you guys -- they quickly made that -- thank god. if that was going to be a problem because you never know with these owners they could be fickle and could have scratched the great horse this time, california, chrome. >> well, we don't know if they would have scratched but we move very quickly. as soon as they made an official request on sunday afternoon, we had the entire matter adjudicated by 10:30 the next morning which was by the way the first day of the week. so we move pretty quickly to have that issue resolved. and i encourage anybody and everybody to wear a barometric strip, nasal strip, because i know it's going to really make for a fashion statement on saturday. >> i agree. you know, we're amateurs here. how much longer is the belmont? because in the last race, you know, if it had been too much longer i was thinking one of those horses might have caught california chrome. i mean is this his distance? >> the distance is 1.5 miles,

making it the longest, most challenging race of the three races that comprise the triple crown. >> i'm worried. >> why belmont is called a test of the champion. >> i'm worried. crew california chrome makes his mile and looks like he's finished. i'm worried about the last quarter mile. >> just remember every horse has to run the last quarter mile he's beaten all contenders so far. his owners certainly think he has a great shot at winning. obviously there are a number of other great horses in this race. that's what makes horse racing such a wonderful sport, is that the equine athletes are so superb and so closely matched. >> yeah. it's amazing and, you know, the story of how much he costs and that everybody was a naysayer and the great -- i mean owners can be so interesting and idiosyncratic. they're great and charming. we're looking forward to it. i think everybody is going to watch. they should on nbc.

thanks for your time today. appreciate it. >> thank you. that's a great point you make. you don't have to have $2 billion to own a sports franchise in horse racing. these two owners have an incredible story and everybody can participate. >> thank you very much. >> thank you very much. good luck to you. >> have a great weekend, everybody. make sure you join us on monday. time for "squawk on the street." good morning and welcome to "squawk on the street" on this jobs friday. i'm david faber with jim cramer and scott wapner live from the new york stock exchange. carl quintanilla has the day off. futures after we did get that non-farm payrolls number in may growing by 217,000. that was about in line with expectations. you can see the market is responding positively. how about the ten-year. wasn't that long ago we were back to 2.4 but we have been rallying a bit at least or i should say yeah, the price has been selling off.