ends? >> a lot between now and the end of the day. but i think the market liked it. and by the way, i was 1,000 off. even with this price -- >> you're right! >> thank you, steve, for being here. make sure you join us on monday. "squawk on the street" begins right now. right now, good morning. welcome to "squawk on the street." i'm david faber. jim and carl have a well-earned day off. let's give you a look at futures after yesterday's drubbing on the broader averages. the s&p is looking down ever so slightly. and let's also take a look at the ten-year note yield. perhaps it was the prospect of higher rates yesterday coupled with a lot of concerns that brought us down 2% on the s&p. down ever so slightly in terms of the ten-year.

let's get back to our roadmap back here in the states. it starts with jobs. employers adding 209,000 jobs in july, below forecast but showing strength in the labor market and the economy. >> the white house's reaction to that when we're joined by the chairman of the council of economic advisers. >> and big earnings this morning. tesla, gopro, procter & gamble, chevron. >> and breaking news, auto sales trickling out all day long. phil lebeau has the details. >> ford up slightly. 9.6%. we're going to get a lot of numbers here in the next hour. what we want to see at the end of the day is the ultimate sales pace for the month of july. most estimate it will come in about 16.7 million or 16.8 million.

ford up 9.6% in the month of july. back to you. >> thank you very much, phil lebeau. back to that jobs number, the economy adding 209,000 jobs in july, the employment rate tibckd up to 6.2%. we are also coming off of a bad day on the broader equity markets, also some concern about flows out of high-yield funds although it seems to be on the shorter duration paper. a lot of reasons for yesterday, we could go through many of them -- >> the list was long. people speculated, it's russia, gaza, argentina -- >> portugal or the prospect of higher rates. we are confronted today with a number many would say is not too hot, not too cold -- >> like mark zandi said. so much of a faster fed. that was really the debate yesterday. the fed was doing to come in and

raise interest rates faster than most people, including the markets were willing to accept. now you have to wonder whether all of that conversation is going to be reversed today because of the market reaction off that jobs number. it's somewhat stunning. bad news is good, good news is bad. back to that debate, i guess. >> what do you expect after zero interest rates since 2008. it's a whole different story. janet yellen and the fed this week said there's slack in the labor market. perhaps this number proves what she's seeing is there and it hasn't been strong enough to get them to change policy. we didn't see any change in wage growth. the fed is looking at that very carefully. no change in long-term unemployed. >> not surprising. the thought of higher interest

rates are just unacceptable for certain people in the market who just expect things to keep going up on autopilot where maybe it's going to grow a little bit more difficult to find value in the market. maybe it's not such just set the thing, sit back, set it and forget it and watch the stock market go up. are slightly higher rates really that much of a problem if the economy is improving? >> perhaps not, at least for the markets. but that remains the big question, doesn't it, scott? >> and jim cramer, if he were sitting here would say, no, it's a good sign. it shouldn't be -- let's talk to a team of experts here. joe lavorgna and brian belsey. joe, you are sort of the poster

child for this -- >> a little disappointing. 209,000 is a little disappointing. but six months in a row over 200,000. claims making new lows. the economy is in good shape. you're right, the market now is going to kind of take out the timing of the fed moving sooner. but we get a stronger employment report next month. then it changes again. >> you said the fed's offside, you agree with fisher, it should be raising rates faster than -- >> yeah. the monetary policy is miscalibrated. they've taken the responsibility away from the fiscal sector by keeping rates low. you can't get structurally unemployed people back into the workforce by putting policy low. i'm a minority voice. richard fisher is a minority

fisher. if inflation continues to rise, even yellen will be forced to do something. >> why not take the numbers for what it is? they does it have to be about what the fed is going to do next? >> it doesn't have to be. you hit the nail on the head in the prior segment when you talked about going forward. the train's left the station when it comes to u.s. economic growth and job growth. we have to worry about six and 12 months down the line. not today, not tomorrow, not the next employment report. all of this back-and-forth just tells us that we remain in a reactionary market. mr. wapner said it best when he said stocks don't always go higher. we need a bit of a respite here. remember the formula for investing. stocks lead earnings which lead the economy. now the economy issic pg up. stocks are very gone up. so any kind of respite in the stock market would be perfectly normal and, oh, by the way,

very, very healthy. it does not dissuade us from our bullish longer-term view. we just need a respite -- >> belski must want something. >> this correction, by the way, is setting up perfect, right? so we have a surprise selloff on thursday. we're heading into a holiday weekend in many markets on monday, on a friday. things are beginning to sell off. this is perfect. remember, in september we have a heavy conference season. got a big deal flow coming in wall street. we anticipate any kind of correction will be short term. the bull market is very much alive. >> brian said it perfectly. >> joe, should i be worried about this outflow from high yield? >> at some point -- when the market sells off, yes. the problem is dealer balance sheets have shrunk dramatically

because of the regulatory hurdles. if rates were to back up violently which i have argued will happen, it may happen where investors have to sell the liquid assets, treasuries, to fund the outflows of investors from credit, emerging markets and these other assets. >> your view is at some point we do get a rather chaotic market response to higher yield? >> go back and look at what the fed was saying many may of '04. there's stack in the markets, pages contained, they hike six weeks later. the two-year note -- at the time it was a record low. almost doubled within two months. >> so, brian, peter boockvar said there could be the start of the correction and the end of the bull market if this tightening begins and goes on for longer than people expect.

you disagree with that? >> yeah. this is a 20-year bull market. between 1982 and 2000, we had some shaky times. 1994 was one of them. '87 was one of them. july '96, we had the kind of pullback that's beginning to take place right now. stocks don't go up forever in one direction. the market, if you think about where assets needs to go and have to go on a fundamental basis, it's developed marks and especially what's going on in america in terms of corporate fundamentals. as you start to see weakness in the high yield and the fixed income markets, the assets will eventually flow back into developed markets. it's only begun and the u.s. is the best-positioned asset in the world to take those assets. >> i bet a lot of folks would hope you were right after that plunge in the dow yesterday. thank you both, gentlemen. it's funny, i was going to go for the pink pants this morning, joe, but i chose not

to. and i'm glad. >> only some people can pull it off. >> i dare you to wear pink pants. let's talk about a story yesterday that emerged during the course of the day and had a significant impact on two names certainly that we focus on here, namely t-mobile. john ledger, the ceo of t-mobile, was here yesterday and as well as sprint. surprise bid from a bench company. some people call it the t-mobile of france, others refer to it as the metro pcs of france. it's run by a multibillionaire. the bid itself not for all of t-mobile. for 56%, they would be buying it via what would have to be a structured partial tinder offer in which deutsche telekom would sell some of its shares.

but it was almost a no premium deal from a company far smaller than t-mobile that would need to lever up extensively. and it wasn't clear that they have the fascinating, and is claiming $10 billion in synergies even though they have absolutely no operations here in the united states. i would call these aspirational synergies, as opposed to real potential synergies. all of which leads me to tell you at this point the deal while received only a week ago has been stuck in the outgoing pile at deutsche telekom at this point. the idea that there are other opportunities, something that john ledger yesterday alluded to during our interview. >> we've always said in the long term scale is extremely important. but i point out that we have multiple options to create long-term scale for this

company, one of which has been long rumored and is one possibility for the business. >> one possibility of any number. deutsche telekom, their best performing asset is what's going on with t-mobile in the united states. they're not going to be that quick to dispose of it. the key is on the regulatory front. if they were ever to do that deal, highly, highly unlikely, it wouldn't face any trust problems. >> the question i have for you, if nothing else, does it force sprint's hand perhaps and softbank to act more quickly? >> i think it does in a sense. not that they haven't been focused on getting this done. for six months, you were dealing with a regulatory impediments potentially and they were trying to smooth the runway in washington, perhaps not successfully. you've been dealing with valuation only the last to months. but they have to get there.

the more time you go without a deal, you raise the questions, maybe someone is out there to do a deal. >> you alluded to the xavier gentleman of gilead -- >> multibillionaire, the steve jobs of france, who i was not familiar with. >> when was the last time we talked about iliad? >> i know. coming up, jason if you rememberen jason furman is going to join us. but first, procter & gamble bouncing back after a few rough months. but some are still disappointed with the company's performance. all of those details on that story. let's take another look at the futures which have been all over the place this morning. there you go. dow jones with an implied open of down 25 following that jobs report. more "squawk on the street" live from post 9 at the new york stock exchange when we come

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procter & gamble reporting fourth-quarter profit of 95 cents a share. that handily beat estimates by four cents. but revenue did come up short. the consumer products giant saying its organic sales up 2%

from a year earlier and its results were helped by cost cuts. i wrote a long piece for cnbc.com called "what's wrong in cincinna cincinnati." pangea has had problems, third quarter in a row where sales have missed, cost have beat. sales growth remains elusive and they're struggling on all quarters. lafley has now returned. investigators want more. this has been a solid underperformer on the year. >> the stock's down 5%. year to date the commentary on the street, they weren't expecting much. slightly better than feared is a

headline from one of the firms this morning. that's putting out a note. they note the revenue growth that you mentioned remains week. >> and it's two stories here. one, the category in itself is weak. kimberly clark, colgate, unilever over in europe, and even l'oreal, citing weakness in the american market. they have not seen the recovery that we've seen in other pockets of the economy. you have problems with p&g. a lot of noyanalysts say they n to get working on their strategies -- >> lafley didn't take that job -- ackman took a position in the stock. there was a lot of hand-wringing about the lack of strategic vision at the company. have things changed significantly? what about a ceo for the long term? >> he was brought in to turn around sales and bring in a new successor.

so far, he's done neither. this was the first time he spoke on the call since coming back. he's not there for the long haul. p&g has a long history of taking from within, in terms of picking the successor. but no hints on that yet. but beauty is going to be one that's going to be a challenge. >> when you were talking about the litany of other companies in the consumer staples space, it's sputtered over the last month, quarter, however most recent metric you want to put on it. it has been a problem. >> 3.3% yesterday may help it out. up next, the one and only art cashin joins us to help us kick off this jobs friday and what it means for the trading day ahead. futures, one day removed from that significant drop in the broader averages. we are poised for a modest, modestly lower open. more "squawk on the street" from the nyse coming right up. ♪

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♪ they are getting ready for the friday trade down here on the floor of the new york stock exchange. let's take a look at futures now, how we're setting up after the worst day for stocks since february. just an ugly day yesterday. and after the jobs number, you did have the futures come off the worst levels. the dow jones futures looked an implied open down 39. the s&p which was down 40 almost yesterday looks like it's going to be down another 4.5 if things stay the way they are right now at the open. let's bring in art cashin, director of floor operations

with ubs. nice to see you. >> morning. >> how should we read the jobs number and what it means for how the market's going to trade? now we're back to this conversation that bad news is good news? >> well, there's a little bit of that. and you had a mild bout of euphoria because the jobs number was as everyone said a goldilocks number. but the futures are beginning to weigh down here. that's the european influence, i think. which was around yesterday. portugal in particular, some internal technicals, david and sara and i discussed yesterday morning the importance of the 1950 level and that we would get the heavier selling if we broke it. we did. and technically that count probably could take you down to 1920 or maybe even a little bit below that. doesn't have to happen all in one day. so you've got negative pressures. you've got some influences from

europe. and again yesterday, people tried to lay it at the feet of a variety of things. but if you looked at the overall picture, it was clearly a financial influence, not a geopolitical -- gold was down heavily and oil was down nearly $2. so it was mostly financial. mostly portugal and internal problems here. >> we have been talking a lot about the russell. the russell dropped for than 6% during the month of july. thinking about higher interest rates, those are the stocks to stay away from. >> clearly. and they has been the leaders on the upside. so it started with some early profit taking. now it's people trying to get a little protection for themselves. so if they roll over again, it will be the russell and the nasdaq will be down. >> a lot been made of this move -- yield, move out of high-yield if you don't understand.

there's this inner linkage with programmatic trading -- >> it resparked the idea that there maybe some contagion within the european banking system. you saw that germany, for example, was down the dow equivalent of 350 points. so they were all in line. portugal, by the way, was down the dow equivalent of about 580 points. so that was clearly at center stage of some of the concerns. >> bad across the board. and argentina lost 8%, given that default. that's what we're calling it. >> i think that was more influential and emotional than anything else. friday has an upward bias, first day of the month has an upward bias. that can get negated by the negative influence of the

technicals. >> art, thank you. have a good weekend. opening bell is coming up on this jobs friday. stay with us. "squawk on the street" is coming right back. all set? yyyup. with xfinity internet your family can use all their devices at once. works anywhere in the house. even in the garage. max what's going on? we're doing a tech startup. we're going public! [cheering] the fastest in-home wifi for your entire family. save hundreds on beautyrest and posturepedic. at sleep train, choose $300 in free gifts with tempur-pedic. even choose 48 months interest-free financing on the new tempur-choice. the triple choice sale ends soon at sleep train. bulldog: oooh! bulldog: mattress discounters' $197 mattress sale! television announcer: get a serta mattress, any size, for just $197 each piece when you buy the complete set.

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you're watching cnbc, "squawk on the street." we're live from the financial capital of the world. the opening bell is going to ring in one minute. i thought we were a little early with the jobs number. eamon went a little bit earlier. i don't know. i don't want to cause a controversy. >> we were first. there you go. that job number is what's going to drive action. 209,000 jobs added during the month. economists looking for 230,000. but it was above 200,000, sixth month in a row we've done that. >> we'll see what the action is right off the open. yesterday was a unique day not only because there were so many things being cited. but the breadth was really bad, vix shot up, volume higher than normal. >> all 30 down numbers.

>> we are awaiting the opening bell here. the realtime exchange, yesterday, almost all red for the s&p 500. we'll see what today brings. you hear a big cheer going up here. at the big board, we have an ipo, mobileye. over at the nasdaq, the humane society of new york as you see our big board back there at headquarters. largely red at this point. i know we're also looking for auto sales today. >> they're trickling out. general motors is out with its july numbers. for that, we go to phil lebeau. >> july sales for general motors up 9.4%. for the month of july. that is shy of the edmunds.com

estimate of 10.6%. only gm brand down last month, cadillac falling 2.6%. what's interesting when you look at these numbers from gm up 9.4%, ford up 9.6%. nissan up more than 11%. july sales, solid, guys. not spectacular but solid and likely coming in in that range for a sales pace of 16.7 million or 16.8 million. >> solid especially in light of some of the challenges and the recalls that just keep coming out. phil, we'll go to you when we continue to get the july auto sales numbers. it's been a bright spot in this economy. >> we were watching stocks on the move but the ones that fill was talking about, procter & gamble is going to help out a little bit off the open. it's up almost 2.5% on the earnings. >> they like the cost cuts and the fact the profits are beating in terms of wall street analysts. they're struggling on revenue, trying to break sales and through multiple categories.

>> david, you're looking over tesla right now. >> i am. the subject of automobile sales, 8,763 model "s" vehicles produced during the quarter, up 16% from the first quarter for tesla. you can see the stock is reacting positively to those numbers. that's what they're focused on. for the most part, it's about production. this morning, i'm also reading -- i think it's a blog posting by dan benton that noted -- huge holder of tesla. dan's always wearing a tesla cap or shirt. 500,000 cars in fremont alone. $40 billion in revenue. $7 billion in cash flow. they're very focused on the continued ramp of automobile production and then you've got the -- they are moving ahead with the battery factory -- we

don't know where it's going to be -- >> they broke ground in reno. >> i didn't know. >> i think that's what i read. that they say they broke ground -- >> moving ahead with that as well, which is very important. bringing down the overall costs for the batteries, key to bring down the cost for the car and perhaps opening up to a bit of a wider audience. >> it's hard to be negative on what is the ultimate sort of cult name in the market, right? everything that you're betting on is down the road. yes, they're making inroads now and producing a lot of cars, more than some expected, they're taking up their production forecast. but the big bets being placed are for down the road. >> that's what investors are looking for in this environment. growth stocks. likeless sa. the worst performer right now is chevron. chevron is the second biggest

oil company. they had rising expense problems. and production problems in kazakhstan, chevron weighing a little bit here on the dow. >> yesterday we heard from exxonmobil, not bad, but same thing. also concern about russia continues to weigh on some of the multinationals. >> definitely. saw that from adidas, a number of other companies have started to warn on that as well. >> adidas is down again today after yesterday's drubbing. >> 25%. not only russia but they're getting hit with golf, which is not too hot right now. >> dick's sporting goods, talked about that. a lot of those companies that specialized or have a sizable enough business of any kind of scale in golf are feeling the pain. >> let's talk about gopro. stocks down almost 12%. it's not that the earnings were bad. but it was up 50% from the

ipo -- >> more. almost doubled from the ipo price of $24. first earnings report. nick whitman is going to be an "squawk alley" later. >> you've had such a huge run after an earnings report. >> $3.3 billion when you exclude dead. scientific games buying bally technologies. shares of bally trading up to that bid price, not too far from it. 30% move, a huge premium. as importantly if not more, once again, the theme for this incredibly robust m&a company, the shock up sharply. it is an all-cash deal. those are typically more accretive than would be a stock deal.

in fact, that will likely be the case. reading from one note here as well -- we had a recent deal between g-tech and igt and that seems to have created the competitive landscape that allowed for this deal to occur. analysts saying they think it makes sense in terms of where this stands right now and the valuation seems fair, reading from one note here as well. so scientific games up sharply. investors responding positively to that $3.3 billion deal. >> deals and ipos. >> deals and ipos. >> this was the biggest for ipos for the year, right? this puts a capper on that, right? >> yes. >> big crowd here for a friday. >> yesterday we had the largest we've seen in the u.s.. let's get to the jobs report for july. it did come in a bit lower than wall street had been estimating, 209,000 jobs were added last

month. the unemployment rate ticked up to 6.2%. let's get that first reaction from the white house. as usual, we are joined by jason furman, chairman of the president's council of economic advisers. jason, always nice to have you on this summer friday, especially. unemployment rate ticks up. any concern for you? >> you look at this report and overall it was strong and it's a continued reflection of the strengthening of the economy. we've now had six straight months of job growth above 200,000. that's the first time we've seen a streak like that since 1997. when it comes to the unemployment rate you were asking about, you have to put it in context. it fell a lot further, a lot faster than most anyone expected. the only reason it went up this month is more people coming back in the labor market looking for jobs as we saw the participation rate tick up. >> can we keep up this pace of job growth?

>> we can certainly keep a good pace of job growth and it would certainly help if we could do more in terms of policy, invest more in infrastructure, take other steps to strengthen our economy like raising the minimum wage. but we do see an economy that's strengthened. >> we heard a lot about the word slack right now when it comes to the labor market. janet yellen made it clear she still sees signs of weakness in this labor market even though we're seeing better jobs growth and a lower unemployment rate. where do you see the problem areas in this report and in this market? >> i think this report is very consistent with the last many reports. it tells a story. we're far into the economy recovery. the unemployment rate peaked at 10% during the great recession. it's now come down to 6.2%. but it still has further to go. we're about 80% of the way back to where the unemployment rate was before the recession. a range of other indicators,

like labor force participation, we'd like to see more people coming back into the labor force, too. so we have further to go. we're certainly not all the way there yet. but we keep moving in the right direction. and we've gone a long way in that direction. >> so, jason, the big worry obviously on wall street today was that a stronger jobs number was going to potentially mean that the federal reserve was going to raise interest rates faster than the market was willing to accept. i know you're not going to comment on fed policy. but as an economist, i'll ask you to comment on whether you think that the economy as it currently stands, following a jobs number that was below expectations, could even withstand higher interest rates right now? >> i think that there certainly is priced in in the expectation that interest rates will gradually rise over time. certainly if you look at, for example, the forecast we just put out for the update of our

budget, we certainly don't assume that long-term rates are going to stay at about 2.5%. we assume they're going to gradually rise over time. and you'd like to see the economy continue to strengthen along with that. that's something we've seen many times in the past. that's not speaking to the particular timing or modalities of it. but of course interest rates aren't going to stay as low as they are now forever. and we've often been able to do quite well -- >> sure. it's a crafty answer. i'll give you credit for it. but if rates were -- we all know they're not going to stay where they are forever. but if they were to rise more quickly than you, me, or everybody else expected, do you think the economy is on this type of footing where it could handle it right now? >> i'm not going to get into a back-and-forth on if they go up this rate, they go up that rate. i just gave you in terms of the big picture. the other thing i'd say and note about the economy right now

is -- as i said, we're not all the way there yet. and one of the things in this report, unfortunately we didn't see wage growth. i would have liked to have seen more wage growth. with the productivity we have, we could afford to be seeing more wage growth. but there's no signs of overheating in that dimension of our economy whatsoever. >> want to ask you about that 4% gdp number that we saw this week. how sustainable is that and what do you think is the biggest risk to coming back off of that 4%? we've been disappointed so much every time we get excited during this economic recovery. >> there's no question that part of that 4% was a bounceback from the first quarter. part of that 4% was an unusual increase in inventories. you tend to see those reverse themselves. but in terms of the bigger picture, i do think a wide range of indicators are showing that the economy is strengthening. you see it in gdp. you see it in jobs. you see it in a number of other indicators.

and one of the reasons for that, i think, is that our fiscal policy is in better shape. we reached a budget deal at the end of last year. we brought back some of the sequester, more certainty, less drag. important to make sure we're not interfering with that going forward. >> jason, as always, appreciate your time. jason furman, chairman of the city council of economic advisers. >> thank you. >> let's see how it's moving the markets this morning. bob pisani is on the floor with what's going on. >> we have an ipo that just opened. priced at $21. just opened at $21. in a weak of fairly mediocre ipos, we have a hot one. talking about mobileye. we're waiting for it to open. indications, $31 to $33. i'd like to put up the screen. amazing numbers. earlier in the week, talking about $17. somewhere around there. price talk was moved up to $21 to $23. then they priced it at $25.

talking about a huge jump-up here from 500 million to over $800 million. they make the software for collision avoidance systems. but they're an israeli company. there must be 100 executives on the floor here. maybe israel is emerging as a hotbed for sensor detection technology that's out there. waiting for this one to open. as for the nonfarm payrolls, hawks have a little less to crow about at this point. weak nonfarm but not dramatically so. wage growth subdued. pce, price changes in consumer goods were contained as well. less chances of a dramatic increase in interest rates. that's why the stock market is almost on the verge of going positive when it was dramatically on the negative side. i just want to show you the global markets. speaking of lower interest rates, low interest rates have helped emerging markets this year. countries like brazil and india have done very well in the low

interest rate scenario. europe has had a terrible time in the ukraine. on earnings, irc cited increase in bodily injury claims. hope you saw eamon's story on that yesterday. chevron beat on the top line. expedia raised their dividend. your point on gopro is right. went from $30 to $50. huge run-up. their guidance for third quarter was good for earnings and for revenues. just gone pretty far, pretty fast. still waiting on mobileye. >> thanks, bob. seema mody, the nasdaq was the hardest hit yesterday. >> it was. a little bit of a rebound here on the nasdaq, at least early signs here on friday morning. what really stuck out yesterday was the fact that it wasn't just the high fliers, the momentum stocks under pressure.

large-cap diversified tech names also underperformed. in an environment where rates are expected to rise, history has taught us high-dividend paying stocks remain vulnerable. despite that theer rip. when it comes to techs, some prefer the mega cap names. apple, microsoft, intel, hewlett-packard all up double digits over the past six months. when it come to the internal, these stocks came under pressure today. tech tends to outperform. something to keep in mind. scott? >> seema, thanks so much. let's head to the bond pits, rick santelli at the cme group in chicago with the latest on rates and the job reactions as well. >> it's an interesting session, scott, because you could call the number a disappointment. it isn't a disappointment. it's less than we were looking for. it's not bad. just like the rest of the economy. not bad.

could the number be better? yes. could the economy be better? yes. it's probably one of the reasons why as you look at this chart of tens, ten-year yields are lower. two-day chart, ten basis point spread. we popped yesterday because of the compensation used to be about jobs, jobs, jobs. but now you cut them in half. if we look at the dollar index, it's been volatile lately but holding very well. best level since september. flip the chart, here's the euro versus the dollar. at the worst level since november. the dollar strength is based on the weakness in europe. back to you, david. >> thanks very much, rick santelli. coming up, it's only been about a month since gopro's ipo. but the company already reporting quarterly results because the quarter ended. the stock, of course, has been up sharply.

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welcome back. there's the market fixer right now. s&p and the nasdaq are positive slightly. dow jones industrial average trying to work its way back in that territory as well. our own peter shack on the market desk says the dow is 600 points below its all-time low. gives you -- you take yesterday's 300-point decline in context of that statistic, shows you where we were and where we are now in a short period of time. we could pare 600 points off in the matter of a couple of weeks. >> we are entering a new month. art cashin said you usually have a positive bias. that would be notable. july ended the five-month streak of gains for the dow jones industrial average. s&p had its third worst day of the year yesterday. coming off this brutal selloff

here in flatland across the board. >> we have quite a large crowd right behind us, reminiscent of some of the other high-profile ipos we've had in the past. this is from mobileye, israeli company, raising a little over $200 million selling 35.6 million shares. the company selling about 8.3 million of those. priced at $25. looking now $32 to $34. so quite a nice potential move there from mobileye. talking windshield-mounted cameras that pictures of what's in front of you. there's a lot of talk that they're helping with cars -- self-driving cars, being part of that nascent effort from a number of different entities, including, of course, google. >> which people see rising demand for. that could be a nice way to play that. >> flood of ipos we've seen.

this week, the busiest of the year, i believe, capped by two on this there. vtti just recently opened. and this one now. >> we'll be watching the ipo prices. watching volumes, watching the markets. also we have breaking news on the consumer, all coming up after the break. >> up 209,000 in july. >> were you able to nail the number? if so, you will win this awesome t-shirt signed by the entire "squawk on the street" gang. find out if you're the lucky winner later on "squawk on the street." when you run a business, you can't settle for slow.

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the fastest elevator. the fastest speed dial. the fastest office plant. so why wouldn't i choose the fastest wifi? i would. switch to comcast business internet and get the fastest wifi included. comcast business. built for business. welcome back to "squawk on the street." 81.8 is the final july read. some of the services running a bit slow. how does that compare? 81.3 was the mid month. so it's pretty darn close. if we look at june, 82.5. the high watermark, 85.1 a year ago. we have more data to come in the form of ism. sara, back to you. >> we'll check in with you when that happens. thank you, rick.

want to point out what's happening across the major indices. the s&p 500 is now positive. the nasdaq now positive. the dow still under a little pressure. best performer in the dow is procter & gamble of that big beat on the bottom line. the ceo on the call saying revenue growth remaining a little elusive. but the market likes what it saw out of p&g. >> i was looking at big technology names. microsoft, apple, intel going positive. linkedin on the back of earnings up almost 10% right now. they had a pretty good quarter. they beat by at least a dime, maybe 12 cents. there's the stock. hasn't done great year to date but is up this morning -- there it is, more than 10%. >> technology. this is going to be the real test for the buy-the-dip strategy.

brutal selloff yesterday, one of the worst of the year. >> still ahead, we're going to have goldman sachs chief economist jan hatzius will join us with his take on the jobs report. what it means for the economy overall. plus, expedia has its second-quarter numbers out. the stock is up. we'll talk to the company's president and ceo. get his reactions. we wait for mobileye to open. $33 to $35. we're back after this. the cadillac summer collection is here. ♪

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welcome back to "squawk on the street." we might have had a bit of a weak michigan number. as expected but it wasn't higher. here we have a strong number. jumps up to 57.1. those were july numbers. take a step back for june construction and the construction spending number, minus 1.8. looking for up 0.5%.

better-than-expected michigan, as expected with regard to confidence numbers. and of course we continue to try to digest the slightly above 200,000 jobs number. treasury rates up about seven basis points on the week. sara eisen, back to you. >> not bad, that manufacturing number at 57. thank you, rick. markets are asking one question today and what does that job report mean for fed policy and interest rates? thank goodness our senior economics reporter steve liesman has the answer back at h.q. comment also on ism, pretty big beat there. >> big number there. rick is absolutely right on that. you had the employment index up to 58.2. that's the best number since june 2011. the new orders index, highest since december. very good internals there. the construction data, again, a huge disappointment. the revision upwards, going to matter for may. then you have this big negative for june, unclear. and we'll tell you as soon as we get it how all this factors into

the revisions of q2 and ultimately what we'll have on monday morning, the first look at the third quarter. let me show you this data. the only thing that matters is the impact on the fed. nonfarm payrolls, people saying not too hot or not too cool. 209,000 -- that's my typo there. the participation rate, people coming into the workforce, what does that mean? that's janet yellen's theory here of why she has room to be calm with interest rates because there are people coming into the workforce. there's a vast pool of people that are not working that if the economy is doing better, they can come back. markets saying even if the economy is booming, if wages are not rising at a reasonable rate to help boost incomes and there are no signs of inflationary pressures in the market the fed has nothing to do here. not quite as robust as anticipated and will not force the conversation about an

earlier rate hike that hawkist folks at the fed like plosser and fisher would like to be having. fisher said this on "squawk box" about the conversation regarding interest rates at the federal reserve -- >> i feel personally that we're closer to lift-off than we were, people felt we were, the market assumed we were, some time late in 2015. i believe personally we've moved that forward significantly. >> what is significantly? we questioned him after that. he said maybe as early as 2015, the beginning of 2015, if the data goes the way it's been going. i don't think this number is one that may be as strong as some had hoped and would suggest that they're going to move earlier. we need to watch wages as a sign of inflationary pressure and watch what's happening with the labor force. it's certainly stabilized the participation rate and it moving up is suggesting that there are people out there who can keep wages down. >> a quick question, did you ask richard fisher why he didn't dissent?

everybody thought it was plosser who dissented at the last meeting. >> we asked him. and he said he feels like the fomc has moved to where he thinks they ought to be so there's nothing to dissent against. it's interesting to see how he cares about this considerable period language. but if he feels like they're moving to where he thinks they ought to be, he's not going to dissent in that context. >> steve, thanks so much. u.s. stocks have not only pared their losses following the jobs report, positive across the board. let's bring in michelle meyer with bank of america/merrill lynch and stuart freeman with wells fargo advisers. michelle, to you first, you were expecting more today, right? >> we were. we were looking for 250,000 for nonfarm payroll. so it's a little bit

disappointing relative to our forecast. but i think it's important to take a step back and think about the trend in the economy. the three-month moving average is running at 245,000 for jobs. the unemployment rate did tick up. but it was, as steve mentioned before, largely due to an expanding labor force. so i would say the growth data we've seen, the ism numbers that came out this number, is still consistent with an improving economy, about 3% growth. however, we're not in the environment yet where inflation is really accelerating. and certainly not to the point where it's going to get the fed to want to see higher interest rates. the fed will remain accommodative. the data is consistent with that. >> it doesn't change the trajectory of rates which had everybody having a fit almost in the market yesterday. you could blame a number of factors but that certainly was a central part of the conversation. >> it was. i think when you consider the

distribution of risks, i think the gdp numbers that we saw showed that the downside risk to the economy are diminished. we don't necessarily have the same type of vulnerability that we thought we had when we were looking at the prior set of numbers. but when you're thinking about the trajectory going forwards, it's a healing economy, it's a growing economy but it's not one that is off to the races that's going to trigger a real move higher in inflation. so i think in terms of rates, you remain range-bound. the fed will at some point hike interest rates. but i don't think it's right now. >> stuart, where does this have stocks going, do you think? >> well, i think that we're still in a sweet spot for stocks. we've seen a little more volatility in the last month or two, a lot more 1% move days. but we'd expect that as we see more and more tapering, the fed continuing to taper. volatility has been way subpar for a very long period of time.

and investors have been looking for reasons to sell. i think we had a confluence of events, some negative events or concern events internationally and some events that suggested the u.s. is picking up again. and we see moderate growth for the rest of the year and continuing job growth where investors worry about the fed coming in and raising rates. but right now, we're not seeing a material pick-up in inflation. that's key. i think there is room in the job market still before we start to see that. >> certainly didn't feel that sweet yesterday, though, stuart. >> yesterday -- we've had such low volatility that a 2% down day is -- there are periods in the marketplace where that's normal volatility. we've gotten kind of spoiled. as soon as some investors started to sell for some reasons, other investors thought, i'll pile in here, too.

i've got nice gains. been looking for a reason. this might be that 10% correction. sellers follow each other. selling begets selling. and from time to time, we're going to get those types of -- i think volatility is going to be more on a day-to-day basis greater than it was two years ago because we've got a fed that's going to slowly -- very slowly pull some of the liquidity away as we move through the cycle. >> michelle, investors are keenly aware right now of what's happening with wages or what's not happening with wages. we haven't seen the kind of wage growth -- we know janet yellen is looking for it. why aren't we seeing it? we've seen six months of 200,000-plus jobs created in this country. why aren't wages rising with jobs? >> i think it's because of what the fed put into their statement. there's still underutilization in the market. the participation rate picked up

because there's capacity for people to come back in the labor force. so if you have slack in the labor market, if you have people who are out there willing to work if the opportunities present themselves, then it's harder to see a real tick higher in wages in that environment. so the idea is that perhaps the unemployment rate that we all like to look at, it's not the best measure of labor market. there's broader measures we need to focus on. that's what yellen is telling us over and over again. think about the underutilization, the measurements of slack. she's convinced they still exist. >> i guess the concern has to be, what is the consequences -- what are the negative impacts of zero interest rates and keeping the fed in this policy versus the positives? can they target things like wage growth, long-term unemployed, all the slack in the labor market or do some of the risks outweigh the benefits? >> that's the key question. i think that's what a lot of market participants are struggling with and a lot of fed

officials are as well. this cost benefit of monetary policy. i think when you look at the cost, you look at what's happening in financial markets. are we seeing dislocations? if we are, are those dislocations creating systemic risks in the economy to impact the average individual on the street? i think at this point and certainly what yellen reiterated is, no. we should instead be focused on the dual mandate, price stability full unemployment. and i think she would argue we're still below that 2% inflation. you're not really seeing signs of wage inflation or real momentum move higher in terms of prices. so at this point, low rates seem to be appropriate. >> guys, thanks so much. have a great weekend. talk to you soon. >> thank you. let's send it over to morgan for a market flash. >> check out starwood hotels, one of the leading gainers in the s&p 500.

increasing its share buyback program to $1.5 billion and upping their dividend. the stock is currently trading up about 3%. >> the travel industry has been a good one lately. morgan, thank you. coming up, more on the market turnaround. this morning, when the job market really needs for investors and for fed policy. goldman sachs chief economist jan hatzius joins us for an exclusive interview right here at post 9. and it's in the green this morning. expedia beating the street. their ceo will join us right here on cnbc. the stock up almost 7%. and thank you for your bravery. thank you colonel. thank you daddy. military families are uniquely thankful for many things, the legacy of usaa auto insurance can be one of them. if you're a current or former military member or their family,

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tesla out with earnings beating estimates on both the top and bottom lines. shares reacting positively, up almost 3% this morning. let's bring in colin rush with northland capital markets. a lot of excitement now that they're breaking new ground on the giga factory. tesla continues to deliver. what's your take? >> to keep these guys on track, they have a lot to work on. looking at 2017, 2018 earnings. to see them staying on track, improving margins is a material

improvement and the investments they're making in the service side are going to serve them well over the long term. >> 70,000 vehicles by 2015? >> absolutely. the guidance they gave in terms of reaching 2,000 a week exiting 2015 would imply 100,000 vehicles per year. we think they're lowballing the numbers. they committed to producing 60,000. we were waffling in terms of not wanting to provide too much guidance. but ting those numbers can be robust. that would get us to about a $7 billion revenue number for next year. >> you ever worry that you're getting a little too bulled up a here, eventually when they deliver, there's going to be a multiple that makes sense on this stock? >> yeah. it's always a concern with the momentum stock that you're looking at growth and at the point that you cross over from a revenue growth multiple into an earnings multiple that it's not there. that's why the gross margin is

so essential. there's an additional five points of upside to our gross margin estimates as we go through the latter half of the decade. it's a positive indicator in terms of where the earnings multiple can end up. >> in your note this morning, you list three key points and six risks. i'm just curious as you go down the list, execution risk, demand risk, subsidy and regulatory risk, financing risk, intellectual property risk, key personnel risk. which one would we be most concerned about from an investor standpoint, for a stock that's run so far so seemingly fast? >> i think it's the combination of the execution and the personnel risk. this is where i've spent most of my time talking with management. it's hard to maintain a cohesive culture that's entrepreneurial at its core and allows them to capture the imagination of their workers and the time to really execute as they grow five, sixfold over the next five, six years. as we look at this company going

forward, there's a lot of talent, very accessible capital at low rate for these folks and to expand their product portfolio to flesh out the vision of what this company could become is the real challenge here. >> colin, thanks for the perspective on tesla, optimist on the stock. >> one of many. coming up, expedia shares in the green after the company reported strong profit numbers. the company ceo first on cnbc right after this break. still waiting for mobileye to open. their first trade today. that we think will be coming up. looks like it's going to be a positive one, too, for that company. back after this.

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dara khosrowshahi is the ceo of expedia and he joins us now. always good to have you. on your conference call, you were asked about the competitive

landscape. and you say, there are more voices competing for consumer attention. you just have to execute better than you have in the past. are you executing better and if so, why? >> we believe we are executing better. you look at our booking number, room nights growing 28% year-on-year. travel is expanding. online is getting bigger. more and more people are coming online on a global basis allowing us to spend more and invest more. and a lot of people are finding expedia.com on a global basis. that shows on the top and bottom lines, adjusted earnings per share grew 60%. right now, we're in a pretty good spot within a competitive marketplace. >> typically, though, one aspect of a competitive marketplace is you have to spend more money on things like marketing, getting your name out there.

gross margins aren't crimped as a result of having to spend on that side? >> our marketing spend is going up faster than revenue. but these are big-scale businesses when you talk about $13 billion of gross bookings in one quarter. we're able to scale off of our fixed expenses. i think it's a great situation where you can spend aggressively into marketing but still increase profits over 60% adjusted earnings per share in a quarter where your revenue grew 24%. so this is a business that's scaling nicely. we think it's going to continue to scale. >> i'm curious about your take on priceline, your rival, buying open table for $2.6 billion in cash. expanding into restaurants and sort of other services. is this something that you would look to do, go a little bit outside of travel through perhaps an acquisition? >> not at this point. we look at the travel industry. it's a trillion-dollar marketplace on a global basis. there's plenty of room to grow.

we want to get into europe and asia deeper. the latin american markets are interesting. if you look at the expedia service, it's a broad service. we offer packages, you can buy flights, hotels, cars together. you can also buy destination experiences. you can go out and buy disney tickets, theme park tickets, get ground transportation. so we are already in a position where we have a very wide berth. and as long as we execute down that road, we're going to do great and bring millions of customers to our sites. >> how does the consumer look to you right now -- have you noticed an uptick in the number of nights booked on your site, things like that? >> yeah, the number of nights booked on our site is at an all-time record. we had 45 million room nights booked this quarter, all-time record on a year-on-year basis. more and more consumers are realizing online is better. and online now has expanded not

only from your pc but now your mobile phone. mobile is an entirely new area that you can explore. we've got over 150 million downloads. we think that we can be everywhere for the consumer which makes us all the more valuable to our supply partners. >> you mentioned mobile as a share of your bookings, 20% and growing very quickly, much faster than desktop. you indicated one of the muscles you have to flex is how to drive android downloads. you have insight into how people are using their mobile devices. what does that mean, android versus ios? >> most of ios downloads come through the apple app store. there's a central place you can focus your brand marketing on. android downloads come from a dispersed group of demand on an international basis. we think that a business like ours with our brands with the hotels.com, expedia, we can

attract android downloads in awaa that other individual hotels or brand can't. while we're in investment mode right now to get as many downloads as we can across as many phones and devices as we can, we think this just increases the value of our brands as it relates to our supply partners. so we're in investment mode now. but we're confident it's going to pay off. >> in terms of marketing, you talk about facebook and twitter. you want to see if you can actually scale there in terms of marketing. do you think it's possible? what are you seeing in terms of response one way or the other? >> we spent hundreds of millions of dollars on google, for example, which is a terrific marketing platform for us. we want to do the same thing on facebook and twitter. when we find demand, we will follow it and will invest very aggressively in demand. at this point, we see facebook and twitter as great promotional

platforms. if one of our partners puts out a great deal on hotels.com, we'll tweet it out, put it on our facebook site. we get a good amount of demand that way. we want to extend that and scale that. so at this point facebook and twitter are pretty small compared to google but are certainly growing faster and want to keep that growth going. >> dara, thanks for joining us. >> you're welcome. >> dara khosrowshahi, ceo of exped expedia. let's send it over to scott cohn. >> hewlett-packard overcharged the u.s. postal service for products between 2001 and december 2010. hewlett-packard trending down about 1.5%. >> thanks very much. goldman sachs chief economist jan hatzius will be here to react to the jobs number and the market reaction after the break.

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best july on record with a 41% sales surge. and the biggest gainer on the s&p and the nasdaq 100, expedia after they reported earnings. the ceo just on, first on cnbc, right here discussing its increased bookings numbers last quarter. let's talk more about the big jobs report. the data coming in slightly below what the street expected. goldman sachs has estimated 235,000 jobs added in july. let's talk now to jan hatzius with goldman sachs. 209,000. there's so much data in every monthly jobs report. did you learn anything new about the state of the labor market? >> at the margin was a little weaker across the number of things. the payroll number was softer. the household number was softer. although the increase in the unemployment rate was due to a lack f of participation in the labor force. but weaker earnings number.

if you look broadly at the indicators, it's not just the unemployment numbers but also business services such as the ism that we got a little while ago -- >> got a big crowd here. >> mobileye, ipo we've been waiting for it to open. it's priced at $36. that's what i saw. immediately opening a bit higher. you see it right there. >> that's a big, big jump. >> well up from the $25 a share. do the math at home. talking about almost $8 billion market value as it's climbing above $37. goldman sachs are part of the selling shareholders. the company raising about $200 million in the offering. up sharply this morning. also interesting to note blackrock, welington and

fidelity were in these shares as venture investors in a sense. something we're starting to see more of even from mutual fund guys. >> they're having a good guy. >> they are. it's an $80 million revenue company. net profit, $15 million in 2013 growing very quickly, selling to the likes of bmw, gm and tesla. >> hatzius shows up, the crowd goes wild. >> rock star status. we won't ask you about mobileye with goldman -- >> that's a nice twist on it. >> helps pay your salary. >> the broader market is focused on this question of when the federal reserve is going to change policy. you made waves a few weeks ago when you changed your forecast. you brought it up. anything to worry about now? >> we pulled it forward a little bit basically because of more labor market improvement. that's still true if you look at 2014 to date. the labor market has improved a little more quickly than we expected and i think many people

expected coming into the year. but at the margin, this is somewhat softer message. to the extent people pulled forward their expectations for when the fed might start to move into the first half of 2015, i think this is going to lead them to push it back again. >> i was going to ask you the same question i asked jason furman earlier. do you think the economy can handle higher rates earlier than it may have been anticipating? >> well, i think probably that's not what you want to see if you did see broader higher rates. that said, the most important driver is at the longer end of the yield curve. that's what mortgage rates depend on and mortgage rates are probably the single most important transmission mechanism. that supportive. if you saw that change, that would make a difference but it's not meaningful so far.

>> what are your slack indicators here? is it the wage growth. >> i think wage growth is an important indicator because wage growth is pretty tightly linked to slack. so that's important. things like the broader employment population ratio are important. but a lot of these overlap to some degree. they do confirm that there's always a lot of slack in the economy. >> does this now raise the expectations for what could happen in jackson hole? jackson hole at one point started this stock market rally in some respect that is we've been on. some, i guess, are wondering now whether jackson hole this time around could end the rally we've been enjoying for bulls anyway based on what janet yellen says. and now everybody's worried the rates are going to rise sooner than they expected? >> jackson hole is an important event when you have the fed chair speaking.

i don't think it's quite as important as people have made it out to be because it's been particularly important at times over the last few years because it coincided with a turning point in monetary policy, a return to monetary easing. and that was a little more sort of the coincidences of the calendar -- >> we're not at the cusp of returning to monetary tightening? >> there's not a major change in direction. things are getting better and i think things getting better will eventually turn into monetary tightening. but i don't think it's the same kind of change in direction that you had in the summer of 2010 or the summer of 2011 when the fed went back -- or 2012 for that matter when the fed went back to monetary easing. but it's an important speech. probably will be about the labor market because that's the topic of the symposium. i think the more important event from a pure monetary policy

perspective is still the september fomc meeting. >> do you have to raise your gdp forecast after that 4% number? >> no, we're at 3.25% at the moment. we're broadly comfortable with that. if anything, the rest are probably on the lower side because inventory accumulation was a bit firmer than anticipation. but that's a micro development. >> jan hatzius, always good to see you. the chief economist at goldman sachs. we want to turn back to the geopolitical flashpoints around the world, one of which remains in gaza. surprise cease-fire announced in the middle of the night. now that appears to have already broken as the violence continues there. ayman mohyeldin is there. aym ayman, what's the latest? >> reporter: guys, the situation right now remains very tense particularly in the southern part of the gaza strip. now, according to palestinian

health officials as well as the israeli military, there's a lot of fighting taking place. health officials say the death toll as a result of israeli shelling has now surpassed 40 palestinians killed, hundreds more injured as thousands continue to leave their homes. israel says it has launched a large-scale operation to try and rescue a captured israeli soldier who was taken this morning during a brazen attack by hamas militants inside the gaza strip. both sides are blaming each other for violating the cease-fire that led to this round of violence. israel says that at 8:00 a.m. local time as the cease-fire was going into place, hamas militants attacked its soldiers. their positions that they knew were going to remain inside gaza and as a result two israeli soldiers were killed. one was captured and taken out by way of a tunnel to another location. that is why the operation now is ongoing to try and confine or limit any attempt by the militants to remove this israeli soldier away from the scene of the kidnapping. at the same time, the palestinian factions are saying that as a result of israelis

violating the cease-fire, they were forced to carry out this operation in self-defense to capture this israeli soldier. they say that it was israel that according to the cease-fire agreement, they were not supposed to be expanding their operations inside gaza but in fact that's exactly what they did. and as a result, they've managed now to capture a soldier that is in the eyes of many a game-changer here. scott? >> ayman, thanks so much. ayman mohyeldin. >> and an israeli company wowing on the floor of the u.s. stock exchange. mobileye is now up more than 51% here at the nyse. coming up, jean-claude trichet, the former president of the ecb as weakness in europe rattles investors. he's going to be speaking with our own rick santelli. "squawk on the street" will be right back.

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welcome back to "squawk on the street." rick santelli here. i'd like to welcome a very special guest today, former head of the european central bank, jean-claude trichet. mr. trichet, thank you so much for taking the time this morning. >> it's a great pleasure to be with you, great pleasure. >> thank you. listen, one week ago, you were quoted as saying the following. i'd like to read it and put it up on the screen. the fact that we are still in post-crisis is a major challenge and appears to be confirmed by the fact that central banks are still engaged in measures of extreme importance, certainly in the uk, japan and europe. therefore, the private sector is still not functioning normally. mr. trichet, my question to you is, how do we assess what normal is post-crisis? >> well, again, i think that we would be in a normal situation where it would be normal that

the major central banks would not be in an extraordinary mode. so i have to say i take very positively the latest figures in the u.s. and the fact that it confirms that tapering will, of course, be achieved and then when the time comes, interest rates will increase. it seems to me that it would be only the reflection of the much better functioning of the private sector. that being said, there are thoughts that the market is looking only at the central bank and not to the real economy. but this will be corrected when the time comes. >> see, and many would agree with you. i believe what you're saying is if you look at the level of the equities, for example, it might not be saying the same thing that you're hearing the economies say. but in either case, we're certainly much better off than we were. and i guess my question is, you're one of the few who in '03

through '06 warned of debt. have we taken care of debt? in the u.s. our budget deficit is getting smaller. percentages of gdp throughout europe and in the u.s. versus debt are getting smaller. but we're still carrying every bit of the debt we did at $17.6 trillion. what should we do with those big numbers and what will they mean moving forward? >> my own recommendation would be to continue cleaning the house, putting the house in order on both sides of the atlantic and also of course in japan. because as you know my own vision is that it is a problem that we all share, all advanced economies. so we have to continue to do the job because it's absolutely clear that the drama in which we were in '07-'08 came both, i would say, for overindebtedness of the various states and

overindebtedness of the private equity sector. so now we're going out of this period. but the states, the treasuries, the budget of the states is still extremely important and particularly important in europe, i have to say, because again we paid a very high price for the absence of credibility, which goes with the absence of quality of your own debt outstanding and your signature of the treasuries. >> mr. trichet, our final question -- and i'll make it a short one -- do you believe it's time to normalize rates in the u.s. even raising them just up to the 1% level? do you think the u.s. economy is even too weak for that 1% level of overnight fed fund rates? >> well, you know, i have full confidence in the open market committee and in janet which i know very, very well. so i'm sure that they are

carefully crafting. what surprises me is when you have good news, the market instead of pricing in the good news on the stock market is saying, oh, this is good news, then the central bank will accelerate the interest rate increases and it will be bad for the market. it's totally absurd. good news in the real economy should be also good for the market and the central bank will continue to do what it has to do if news is good. of course the interest rate increases will go. that goes without saying, it seems to me. >> excellent, excellent place to end. thank you again, mr. trichet. good news should be good news. when good news is bad for stocks, there's a problem. thank you very much, sir. back to you. >> love that burst of emotion there from jean-claude trichet on the perverse relationship between the fed and stocks. with that, we'll send it over to if l fl with bre-- phil lebeau

sales news. >> what we're seeing from all of the major automakers who have reported so far, very good july auto sales. not quite as hot as some might have respected. rbc capital market says with two-thirds of the auto sales reports in, they're expecting a sales pace for the month of 16.6 million vehicles. scott, back to you. >> phil, thank you so much. coming up, it's been a big week for ipos. mobileye just debuting on the big board. the ipo rage when "squawk on the street" comes back. we never thought we'd be farming wind out here. it's not just building jobs here, it's helping our community. siemens location here has just received a major order of wind turbines.

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caused by slow internet from the phone company? that's enough time to record a memo. idea for sales giveaway. return a call. sign a contract. pick a tie. take a break with mr. duck. practice up for the business trip. fly to florida. win an award. close a deal. hire an intern. and still have time to spare. go to comcastbusiness.com/ checkyourspeed if we can't offer faster speeds - or save you money - we'll give you $150. comcast business. built for business. a tough week for the markets. didn't stop more than a dozen companies trying to go public this week. kayla tausche is on the phone. fever it was in mobileye, opening down here, big success thus far. >> one big success, scott. many companies that have been able to go public this week. supposed to be busiest for ipos since august of 2000. more than two dozen companies

expected to go public on the u.s. exchanges. that wasn't the case. look at the calendar. two priced monday night. one tuesday night. we saw volatility creep in, the 12 ipos supposed to price wednesday turned into 7. the 10 supposed to price last night, two postponed from wednesday, turned into 6. many companies hoped to go public this week. when you see volatility spiking 20% intraday like we did yesterday and the dow dropping some 300 points, you just know it's not going to be a friendly environment. i talked to a you few bankers to handicap the market. what they told me, be prepared for sporadic short-term volatility as the fed starts to move. companies are aware it will be volatile. ipos on file think alibaba, fox, godaddy, strength after labor day to go public. smau techs, biotech, beware of

those. those that did we not straight down. that's the sector to watch and stay way from in terms of playing the ipo market. back to you. >> kayla, thanks. meantime, sports apparel has been growing. four times as fast as the overall apparel industry, that helped under armour sales explode. stock up more than 60% this year. yesterday a chance to catch up with the ceo who was at a major marketing event. launching women's marketing, emphasizes the line there. i asked, look, with the pe ratio over 90, how closely does he watch the stock price every day? >> a fiduciary responsibility to be aware where the stock is. it doesn't sdriv what we do. talk about performance in the company, we're not driving stock performance, we're driving company performance. our goal paying 100% bonus every year. figure a way to hit our plan, our bonus and play 100% bonus out equity included, the stock

will take care of itself. >> 17 consecutive quarters of 20% plus growth. under armour on track to grow to a $3 billion company in terms of sales. i asked, when can we see $10 billion? >> we feel great. something we're targeting and driving to. last investor day, promised $4 billion by 2016. announcingses 3 billion at the top end of the range, we feel pretty good reaching that goal and's others. under armour is a great brand. i think that's what you're seeing happening now. remember, this wasn't -- been public 8.5 years. this isn't a new story. a story we've been working on, building, perfecting and we're a long way from perfection, but have a great opportunity. >> a growth stock and challenge retail environment. coming up at the top of the 11:00 hour, "squawk alley." nick woodman, ceo and founder of gopro talking about growth stock. that stock getting hit hard and

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winner for july non-farm payrolls, justin lester. here's on the phone gaoing to b the resillient of this very cool t-shirt. i understand this isn't your first time trying to nail the number. show your model. seemed to work better than wall street economists. >> tell you what, sara, as an investor out there i watch cnbc pretty much all day every day and steve liesman is the man i listen to and obviously someone who knows what he's talking about. i just used his non-farm payroll formula, tweaked it a bit and came up with the number. >> shout-out to steve liesman. pretty good. are you optimistic or pessimistic on the economy? because the number was below what a lot of folks were expecting. >> no. i think i'm more optimistic.

we're trending here 200,000. that's a good pace the last five or so months, and i've actually used this as a buying opportunity. to get into some stocks. >> quickly, justin, what do your models tell you about gdp next quarter? >> gdp? if i had a model -- gdp next quarter looking probably at 4, 4%. i think we'll have a nice snap back from the crippling weather and everything, and keep this going. >> well, congratulations. justin lester, nailed the number on the nose. 209,000 and a bonus, kelly evans. he watches cnbc, listening to steve liesman and that's how he comes to his forecast. >> loved that. sara, thank you. good morning, everybody. it's 8:00 in gopro headquarters in california and 11:00 a.m. here in new york, and "squawk

alley" is live. ♪ good morning. on this friday, august 1st. payroll friday, i'm kelly evans. carl quintanilla is off today. joining me, jon fortt and kayla tausche here at post known. gopro, big mover this morning posting earnings after the bell, stock sinking even though earnings beat analysts estimates. investors appear worried since the gain of the ipo leaving the company overvalued. gopro ceo, joining us for his first interview since the report a little later on. >> when that happened be yesterday, kelly, of course, the markets selling off