>> you know, tailgating -- >> first try. >> tailgatings's popular, but football season, it's more popular, $15 billion a year in the industry. i got a fillet mignon sandwich. >> have a good weekend. >> have a good weekend, everybody, see you monday. ♪ good friday morning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer and david faber. the smallest begin since december, futures mixed, we'll see if the s&p avoids first four-day losing streak of the year. our road map begins with a question, is the economy stuck? the jobs number revealing growth slowed to the lowest level this

year. they commented, what he said. >> shares down premarket after they reported the drop of 2%, and -- >> why nevada really won the factory. >> the august employment report shows the smallest growth report, up 142,000, and july's gain revised up to 212, and unemployment ticked to 6.1, and average up two tenths a percent, and earnings up 2-1, year over year now for two months 234 a row, but a stronger number would have given a bigger picture on wages. >> he said the number's just not right, and i respect the work so much ied said, wow, okay, they're a guy who said the watcher of the number saying august has a lot of revisions up. search, well, how do you deal with effective retail so strong, and layoffs in atlantic city,

and there's big numbers, and we also know that there's people who wait to see some, you know, affordable care act, what it's going to look like, and it was a confusing number, and said if it was missing, someone's taking action on it. i'm stunned. i'm a little stunned. >> felt like we had a lot of momentum. >> yes. >> feels like we're repeating a pattern when we have momentum, we have a number that does not compute and/or stops that momentum. >> feels like janet yellen is smarter than all of us, but, look, i understand. sometimes you say, okay, listen, fed spending is ratcheting back, there are issues involving whether the president could declare amnesty an we have a cheaper pool of labor and immigration. so many moving parts you do not think about until there's a

number that does not fit the scenario. >> right. "politico" says this is all seasonally adjusted. past five years revised up, to 77 taking you to the consensus this far. >> right. that's the issue. zandi, like mel, this is what when does. >> right. >> this is what he does, mark, you don't know what you are talking about, but you are saying, look, i know you follow it for a living, but you're wrong. it was an aberration. i'm not going to game a strategy off this. it just won't work for me to do that. i'm asterisking. i know you're not supposed to, but i am. >> the announcement from the ecb and significant market moves that resulted from that, i mean, is there any -- put it all in perspective for me, jim. >> well, i think we're still tightening like germany.

>> we keep talking about tightening, not easing as much. >> the president could come out today saying we're committing $50 billion to destroying isis. $50 billion, raise the money, destroy. people would cheer in the country. i mean, i think there could be a defense spend battle coming up. that corollary is putting people to work, not the way you want to, but there are issues involving federal government, lack of spend, and yellen still trying to make up for that. you always have to analyze this number. i know we do. this is the inconsistent month. >> it is. >> it is the month i least trust. >> weakest of the year. >> yeah. >> average of six months is 226,000. >> i mention atlantic city because maybe -- that's a shocking number of layoffs, like, big, big. >> kroger this morning going to hire 20,000 permanent positions

in theiradd ed 40,000 over six year, not in construction jobs, just pure supermarket jobs. >> growing at 4%, whole foods less than that, kroger's an amazing operator that embraced natural organ. they are on fire. they don't get the credit. they are the superior supermarket operator in the country. >> now that the jobs number is out, did you nail the number? tweet us predictions for august payrolls, and the winner receives a new cnbc pullover autographed by the "squawk on the street" gang, and we'll announce the winner in the show. secretary perez is joining us later on in the hour too. >> just days to go, that's right, days, before the product launch event, they respond to fallout from the foe toll scandal. tim cook says the company will

add security alerts for icloud user via e-mail and notify them when someone changes the password. regarding the situation, he told the journal, when i step back from the terrible scenario and say what more could have. done? i think about the awareness piece. we have a responsibility to ratchet that up. that's not really an engineering thing. of course, frankly, the focus is much more on tuesday than the hacking of a handful of accounts. >> get ahead of it. the question, carl, you'll be there. >> yep. >> and the "new york times" has detailed accounts of a wearable, an iwatch, i guess is what it's called, what it can do. yesterday, trade publications came out with stories about, perhaps deals, this is speculation, not confirmed, so i don't know that we have at cnbc, that striking deals on the payment side with the big providers that allow apple

because, perhaps, they'll take the fraud risk and because this device and/or the card reading ability so to speak of the new phones will lessen fraud risk. they will take that on and get a piece of the pie on, you know, the 2% or 1.5% that the store pays. >> which would be amazing. mastercard and visa play hardball. downgraded, a mistaken downgrade, that means the device is going to be apple with -- that's going to be rooted, pay, p-a-y, is everywhere. i think that combination is powerful. the wearable is interesting, but watching the game, there's a samsung pack with the extendble battery. i'm the guy plugging my phone in. it was effective. better than the gap ad, which was -- >> what if this wearable is a

game-changing moments? what if it's -- we talked about it for so long, but apple, done this before, they got it right. >> well, i think your doctor's going to send you an e-mail get the wearle. >> oh. that's a scary road. >> why? >> interested in the health element than a payment element? >> i spend more time on fantasy football than my health. well, it's 50/50. >> lower the rate if you wear this. >> now it's gaming out. >> i like this. if you smoke, i'm raising your rates, you have a wearable, i'll cut your rates. >> monitor you everywhere. privacy's dead, but i'm saying it. >> you said repeatedly, don't trade apple, don't trade apple. is the risk tuesday they do more than enough or not enough? >> i think because -- too much is leaked out. too much is leaked out.

saying trade it. no, you know, when i saw the mastercard-visa, that is the holy grail, the payments. speaking to kevin plank believing your shirt should have wearables on it because you need to have data. when i was at the philadelphia eagles complex for sports, i mean, they're having wearables on the players because it's incredibly important to know about dehydration, all about these factors that you can influence your life with. i want that. >> okay. those who do, i would assume will perhaps wear this. listen, it's not a reach to say that apple will end up doing it better. no offense to under armour, but apple can perfect the technology. >> tim cook's and nike's board, all that. >> kevin plank said how could our clothes not tell us more? intelligence said to to me more. >> will it work in the pool? that's what i want to know. >> all the other devices break

dead. >> nothing works, so, sorry, there's still privacy maintain jurn water. >> could be -- they could do the shorts, right? like bathing suits. >> speed-o related? >> yes. >> i've never seen reports go over -- they have gone over how big buildings and pavilions are holding the events for apple trying to discern, therefore, what else is coming other than the larger screen iphones. >> it's big this time. >> right. >> bono rumors, where they announced the mac 30 years ago or whatever. the hype is there. no doubt. the hype and leaks are there. >> stocks hammered this week, and all i'm saying by not trade it is because i'm sitting here thinking about the oddity of selling apple while i want more information to see how many of these devices i should buy.

i know you made a statement basically that you're questioning the device. >> no, no, i think the device -- i have no idea what to expect other than it -- very well may be a leap, a real leap. but then you get down into the privacy thing that freaks me out a bit. you're going to get to a world where everything is monitored to everybody, peer pressure to wear it, big brother, and, you know. i'm just saying. >> i want information on what my body's doing. >> i want more information about how your body's doing too. can i monitor your monitor? >> you're cynical today. >> no, i'm not being cynical. >> this device is a must. >> let's wait until tuesday. >> see, that's what's happening. >> when we return, first reactions from the white house on the jobs number and talking to the labor secretary this hour. speaking of the white house, the president holding a conference at the nay doe summit in wales, concerns about isis on the

agenda. bringing that to you too. first, what tesla said why they selected nevada and why does he think the stock is too high right now? take another look at futures. more "squawk on the street" live from the nyse post nine when we come back. chocolate, soybeans, and apricots. what kind of chef comes up with this? a chef working with ibm watson, on the cloud. ingredients are just data. watson turns big data into new ideas. and not just for food. watson is working with doctors and bankers to help transform their industries. today there's a new way to work. and it's made with ibm. in a 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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♪ last night, tesla announcing it will build the $5 billion factory outside of reno, nevada. the battery plant expected to open by 2017 will result in 6500 jobs when it's up and running. nevada will provide insentives that could total $1.2 billion. this is what the ceo told our phil lebeau last night. >> the biggest single factor was time to completion because unless the factory is ready when we need to produce the mass market affordable electric car, then the vehicle factory will be sold. time execution is extremely important. nevada was in the lead on, i'd say number one on time to execution. >> that's interesting given some elected officials told us yesterday it was just incentives alone, texas would have won, not nevada. >> i was surprised. i thought this was going to

texas because that state has positioned itself in a remarkable way, but to disagree with musk, i know we're going to talk about he said this stock may be too high, said that multiple times. musk defied a lot of traditions and knowledge. he makes your knowledge base question. i just find he's a guy, well, reno, knew it as a place to get a quick divorce, quick marriage, quick battery factory. >> he did say, quote, in response to a question by phil, i think our stock price is kind of high right now. he said long term the price is good, but short term it's less clear. not the first time he said this. i think of reid hastings saying this not too long ago. >> true. these guys -- there will be people who short the stock because he said it, okay. them they just get run over again. i mean, look, this is -- there are people -- remember the port that said they would have 500,000? going to make a car, look,

the -- i've been calling it a cult stock. it's like a wide receiver. you want him in the fantasy leek. what do i say? fantasy stock that's reality. >> you don't get those comments on the stock price from big bureaucratic companies. the companies where the general counsel runs things, never let the ceo comment on stock prices, much more akin to the founder situation or smaller entrepreneur. >> he can say it. >> fun to listen to, but what do they know about where the stock price is going. >> what do they know? honestly, what do they know? he's. wrong before about a stock and right before about his cars. i like him on the cars more than the stock. >> exactly. >> when we come back, mad dash, the opening bell, and take a look at futures if you're just waking up, by the way, jobs a disappointment, 142,000. more "squawk on the street" from the nyse straight ahead. ust howh it has to offer, especially if you're thinking of moving an old 401(k)

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getting headlines from ukraine's president that preliminary protocol on a cease fire with russia has been signed. that agreement set to take effect on friday. there had been hopes we'd get this today, although skeptics wonder if it's a diversion on behalf of the putin to get in winter when they have the strategic advantage. >> well, look, cease fire's good. hard war bad. absolutely nothing, so to speak. look, i think it's good for the market. i don't think it brings in natural buyers necessarily because everyone is distrustful that the rebels can be controlled. we've seen this behavior before. let's take away with a grape of

salt, but rumors this would happen and so it's foregoing, but i think it's, obviously, good news that war can be overted. >> speaking of the market, let's get to the mad dash this morning seated because of the breaking news there. i want to start, i think, with michael kors. >> 11.6 million shares sold, but, of course, it was a hot stock. remember, peaked in the 90s, hammered, just awful. my friend, herb greenberg who is on the 2:00 show on "street signs" says this is important. two founders. they are resigning from the board. it's not -- the company's not selling stock, but they are shareholder, and you don't want to see them leave. they were instrumental. resigning from the board and selling stock. it's not just stock sale. be careful. my feeling is that kate spade disappointment, after the coach

disappointment and the kor's issues, i'm nervous. >> beyond this, what else? >> the environment got promotional. remember, some areas of retail had gotten less promotional, some more. kate spade after meeting, there's worries about being really promotional diminished as of late. now, i met with martinez, the ceo of deckers brands, they are not talking about that promotional holiday season, and, remember, the other day manny, ceo of pvh did not think it was as promotional. downgraded to sell. >> first quarter a public company. >> it was a good quarter, raised guidance, said many things. i want to point out, behind the guys, i know they want to hear who bought it because of me, but this is a private equity deal. you either have to sell these after the first good quarter or

second good quarter. that's the way of things. i say polo loco, here's the feeling about the now. i still love their chicken. >> wow. >> you do? >> i still like their chicken. >> that is direct. >> it's been a good run, and welcome back chipolte. >> interesting. >> best performing ipo of the year. >> been great, still can go higher. i know the private equity deals between the first and seconds quarter is when you take profits because they know how to come out of the chute. in light of the pot belly and noodles, i like fiesta group more and q'doba which is jack in the box more, and chipolte more. >> which you have for quite some time. >> got it. >> last is miguel, not the expansion it needs. >> comps were good.

>> not yet. >> comps were good. >> chipolte has 1700 stores, we have 17 tables, 18th table put in, we can move up the same store sales. >> big time. >> yeah. >> gus is coming back too. >> to the distribution network he had? >> we have the opening bell, of course, digesting this weaker than expected jobs number. six minutes away from the bell. stay with us here on "squawk on the street."

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[ male announcer ] right there in their trading platform. ♪ so the magic shell went back to being a...shell. get live squawks right in your trading platform with thinkorswim from td ameritrade. "squawk on the street," live from the financial capital of the world, jobs numbers disapoints at 142,000, smallest gain since december, and reports of a cease fire between ukraine and pro-russian rebels. this is between the rebels themselves, and we'll see if that's true, according to dow jones and whether it holds to some degree. expected to take effect today. >> interesting. we have to couch it so much. we feel somewhat mythed that it's not clear cut.

who do they report to? like factions in 19 38supposed to be under control of germany and with respect? i don't know. suspicious. got to verify. >> walked through some of the loco numbers last night, and also last night, gap, august comps down two, estimate was for up a rise of 1.6, old navy up two, encouraging. >> inconsistency of gap versus now, consistency in the other players is so difficult. this one has become so hit or miss, reminds me of the chain, hit or miss, which, of course, no longer exists. i think ross stores are better. it's just hard to believe, i know, right? inconsistency month to month. >> yeah. they seemed to be on a roll for a while at the gap. >> yes. >> i think it's no longer the case. >> just very, very hard to gauge. that's one of the -- i had

cooled in retail in part because i can't -- gap is a high profile company, and i'm having very difficult time predicting month to month sounding like they are having a difficult time predicting. >> it was the top pick for the second half. >> now downgraded take two, which i think is a big mistake. got a great business there. >> star buckings, lunching a form of the store for people who don't want to hang out already, 40% of domestic corporate owned stores have a drive through? >> that was the focus. i felt the focus should have been the grocery, the 15,000 square foot stores opened, ten times the size of the starbucks store, where they are taking the brand upscale. that i think, is important. take nike town, apple stores, starbucks, giant stores, think like that, david.

think like that. >> okay. nike town starbucks, i'm thinking like that. >> opening bell on this friday, s&p at the top of the screen, and down at the big board, cvs sports announces james brown and bill cower starting the nfl season. >> we have football thursday. going to kill me for that, but yes. >> ignite restaurant grill, ramonasmaccoroni grill. >> interesting to here them this morning. all the various elements that present their game. >> i know. >> comcast or somebody else. >> i had the good fortune of watching the deckers brand ad, and reinventing itself, that stock is a strong buy. >> strong buy. >> strong buy. >> i noted mr. craft mentioned

directv deal, giving confidence to some focused on that you expect they would be given it's a key part of at&t, and they can walk away if direct does not get the nfl package. they have not signed yet, but everything points it'll get done. >> made me feel better. >> did it? >> mike white's got to under control. >> right. ? mike white, an executive, people david knows who are, like, no other industry do you have guys like, mike. oh, that's mike white, of course. mike's got it under control. ? that's true. they use first names all the time. >> real estate too. >> jack, it's jack in real estate. it's mike in -- honestly, you never mention the last anytimes. ? we don't need last names, come on. >> ha-ha -- >> he missed a tackle. >> watch the ten-year today, down under 4.2, day after telling bloomberg and cnbc beginning of the end is here for the bond rally and draghi wants

inflation in europe, and he's not going to stop. >> demanding it, i don't like the dollar for the export companies. i know the labor secretary is close, but i would be concerned as an export nation with what he's doing to the bigger exports. by changing -- by giving, basically, putting their stuff -- amazing discount to where it was a month ago. >> not to mention japan, what they did in the end, right? facing on a lot of fronts. >> defend them with our army, and they come in and play with our currency. i don't like it. >> what's it say that sorros, billionaires are beginning to reportedly hedge against an expected decline in stocks, right? >> well, stocks have had a big run. i think there's a rolling correction and advance. it's not been -- there's been a lot of people traditionally

negative, and they reiterate they are negative, but they -- dave, i follow closely. david is also -- facts change, do not make him witchy-washy, he's positive with the view, and i take it day by day, not sweeping announcements. >> david and i were here with bp putting out the response to the court decision. yesterday, federal judge finding gross negligence, misconduct, reckless behavior. fines here? four grand a barrel. talking -- >> talking $18 billion even though it does not necessarily include punitive because of thesivity fifth circuit. they are appealing, but the numbers are staggering, and, of course, the stock down 6%. >> citi upgrades it. this judge hates bp so much. it's just -- i think that -- >> did you read -- i try to read

a lot of the decision, and i mean -- >> the ceo, i'm not worried about the finances. i know the journal says they are strapped, but there's a lot of assets to sell, the lower 48 deal, but at the same time, it was over. when you read the opinion, it was overwhelmed -- the phone call before the blast -- >> not disclosed. >> oh, geez. >> yeah. >> you know, look, bp is not -- i like world dutch. they have a name today, similar yield, safer profile going forward. lot more assets for sale. bp sol a lot. they are not a bad company. >> meantime, list of losers today, gap, kors, macy's, pvh. mirror image of yesterday. >> this is what's difficult in the market. this worked, then it doesn't work. i listen to the gurus who hate the market, one of the things

they hate is that, well, they think only reason prices are here is because of the fed. if you like the fundamentals speak on a day-to-day basis, you get inconsistency. who needs it? again, individual days, today's the money's going to go into drug stocks. dollar's not going soaring, and people's money goes to drugs. >> we didn't mention merck. the stock is not moving dramatically, but an interesting positive sign i argue overall for the industry. this new therapy -- >> totally great. >> approved. >> yeah. >> conceivably, analysts talk by 2018 being over a billion dollars a year. it's late, obviously, down -- it's not an initial therapy. it's for when things have not necessarily worked, but it's a new way of attacking cancer. >> so glad you mentioned that. i think the stock -- the company i had great doubts about management in the company, i felt they lost it. more aggressive than i thought. good news, the stock continues to climb, it is the stock people

will be buying here, and you know what else they'll buy? criticize me, you read my mind, but i think jj at 103 is a buy. >> you do? why? >> why? >> yeah, why? >> why do i think it's a buy? >> yes, why? >> they have a lot of stuff -- they are selling a division. they continue to say, the ceo, they are not -- if they're not first, thaey are going to go. get big or go home, david. get big or go home. >> i'll keep that in mind, every day i get advice. >> hiring in the u.s. slowed in august as the economy created just 14 2,000 jobs, smallest gain, and we want to get first reaction from the obama administration this morning. joining us today first on cnbc is the labor secretary thomas perez. good morning to you. >> good morning, always a pleasure to be with you guys. >> do you see this as a big loss in momentum?

>> the economy's clearly moving in the right direction, over 10 million jobs, 54 months in a row of private sector job growth, less than recent trends, but i've looked at trend data, not one month. it's over 200,000 the last year averaging very solid gains, and you look at construction in the past month, moving in the right direction. you know, the biggest job gainer in the last year is business and professional services, so those who say we're only growing low wage jobs are wrong. they have to look at the numbers. we're moving in the right direction. we have to continue to do what we can to pick up the pace of growth. that's why they'll be a minimum wage vote in the senate next week. that's why we continue to focus on highway infrastructure. we continue to focus on skills so that people can tools to compete for the middle class jobs there in indianapolis where

i was this week in a transmission plant that's going gang busters doing great stuff and hiring people. we want to continue pick up the pace, put money in people's pockets. the biggest thing to pick up the pace of growth is consumption, and too many people don't have the money in the pocket. that's why we talk about minimum wage and things of that nature. this is a cop consumption deprived economy for too many people and too many businesses. >> tell me the way it works, what do you tell the president when you hear what is 5 devaluation to the euro, going to take business away from the manufacturing you mentioned. the kind of things japan is doing to take business away. these countries are devaluing. get with the president, do you advise him on how to handle this? >> we talk about currency manipulation, talk about the context of china, other country, and we have been doing our level

best in that area to affect the areas, but, you know, jim, one of the things that's interesting about manufacturing, you know, the last time we had 10 million jobs created in this country was in the late 90s in the clinton administration, and during that job creation of 10 million jobs, we actually lost over 400,000 manufacturing jobs. in this ten month growth -- in in $10 million -- 10 million job growth period in 54 months, we gained over 700,000 manufacturing jobs, so when i look at trend data, that is a trend, and that is a trend that's here to stay because of our energy advantage here, the fact that we're now the world's leading oil and gas producer is a game changer, and it's a game changer for manufacturers that is going to bring them home. currency manipulation is very important, and we're going to continue to do our level best in this area, but we're also creating conditions that are

allowing good, middle class jobs to come home and we see it reflected in the job numbers, not only over the past year, but during this 10 million job growth gain that we've seen over the past 54 months. >> mr. secretary, recognizing, of course, your focus and the rightly focus on the trend, nonetheless economists expected a number that would have been roughly almost 90,000 jobs above what we got. where was the weakness here, whether expected or not, in your opinion, that brought us below what was widely anticipated? >> there was lower than expected growth in the retail sector. there was lower than expect growth this month in the manufacturing sector, but, again, when you look at manufacturing over the past year, we've gain over 16,000 jobs a month, and, as i said before, over 700,000 in the

recovery, and so this time a year, there's often a lot of retooling that's going on in auto plants that leads to temporary layoffs, and so, again, i look at trends, and when i look at trends in manufacturing, when i look at trends in business, professional services, health and education, you know, the health sector has been recession proof. those who said that the affordable care act was going to be a job killer have not looked at the numbers because we have continue to see very solid growth in the health sector, and i expect to see that in the month to come. >> mr. secretary, thanks for the time, appreciated very much as always. >> always a pleasure to be with you. >> meantime, on the floor with the dow down 4 3 points. ed good morning. >> that's right. looking at europe overseas before the jobs report came out, we saw equities actually weaker there. investors, of course, trying to digest what's happening with the quantitative easing, perhaps doing profit taking. the euro also slightly stronger as the dollar begins to slide.

recovered a bit, but, still, pretty interesting trend. speaking of trends there with the labor secretary, and if you look at the s&p futures, we can actually see what happened when the jobs report came out that weaker than expected, 142,000, when economists looked for much more, about 200,000, more than 220,000 or so. we saw the futures fall. we also, of course, saw the yield on the 10-year drop. it began to recover, and in reaction to, that you see these rate sensitive groups, reits, telecoms and utilities getting stronger. we see the ripple effect as you might expect today which is interesting because as you know things have not been as we expect recently. gold prices also spiked. that's sort of the bigger macro pictures in reaction to the jobs report after you had the secretary on there. look at retail. we had a lot of movement after the bell yesterday, not moving in the most positive direction, quick silver, a loss, they looked for a gain, and gap, same

store sales fell 2%. the street looked for a gain of less than 3%. the slight beat on revenue, and we saw zumiez lower guidance, michael kors with secondaries pushing it lower as well. david, back to you. >> thank you very much. i want to get to a deal we've been following closely, not unexpected, perhaps, certainly if you listen to my reporting, but family dollar's board rejected the latest offer from dollar general this week, an $80 up from 78.50 previously, ahead of the 74.50 deal already accepted and signed with dollar tree. the rejection, once again, focused on the antitrust risk adherent in a deal between family dollar and dollar general, and, again, as i did the last time they rejected at 78.50, i would focus viewers on

the comments of ed, the board member of family dollar, but he also importantly, of course, along with nelson peltz, is a large shareholder of family dollar, originally active in the stock, and, by the way, i point out have no stance, have the ability, in some ways i argue, to control corporate behavior, and they have every reason to maximize the value of position in a sale. the comments are, as follows, and similar to what we heard from mr. garden the last time that fdo rejected, focused on delivering value to the highest value with certainty and the dollar tree transaction does just that taking antitrust risk off the table. by the way, that's a new development as well, divesting as many stores as necessary to obtain antitrust cleerarance, a they are fully committed to the dollar through transaction. i mention dollar tree expects to receive a second request from

the trade commission, which the family dollar side points out, hey, if they get a second request and not the overlap or the same business model, can you imagine how closely they look at the dollar general and dollar tree tie up. they'll divest as many stores as it takes. not quite hell or high water, but it's close. they want to close it by november. the question, of course, continues to be, will they will able to? with app $80 share bid out there, regardless family dollar believes it can close because of antitrust risks and what they say would be the need to close far more, divest more than the 1500 stores currently that dollar general said it's willing to divest, will they be able to get the vote on the deal? while it's not said in the press release, what i wonder about and hear to a certain extent is the belief, jim, on the family dollar side, the dollar general, by not being willing to go hell or high water, not saying

whatever it takes, and yet going up a 1.50 from 78.50, already a superior proposal on price is simply trying not to win the day rs but stop the other deal from happening, and that seems to be the concern, i think of those who were advising and those involved in deciding what family dollar will do here in terms of exercising the duty of its shareholders. >> i agree. there's no reason why they don't want to maximize. i mean, if they thought the 81 was going to go through, they don't -- they are not beholding to that. >> not at all. they want -- believe me, they want it an auction. that's what they would love to see. go hell or high water on dollar general, come back at 80 or 81, see what dollar tree does, and walk out with as much as ewe can. >> agree. >> the antitrust is significant here with the belief that far

more than 1500 family dollar stores are in zones where pricing is based on the presence of local dollar general stores and thousands more in zones where prices is based on dollar general and walmart stores nearby. a lot more on that. let's go to the bond pits, and rick santelli is joining us from the cme group in chicago. a busy morning, rick. >> yeah, yeah, david, and, you know, the labor secretary got a woo here jumping on the energy bandwagon like aaron rodgers bragging about the defensive line last night. open the chart up. two time references. mid-july, you see that on the left, why we stop to do this, 245 level is huge, back another couple months, a take at 245 on the left side of the chart on may 15. let's look at the 24-bund. you know what? the great correlation is

stimulus from central banks, the 24 hour chart is the same as the ten, the dax looks like the s&p and dow futures look. the euro versus the dollar, one date, you get a vision here, but let's be fair, this is the one market that truly has horsepower because when you do a two-day, that bounce disappears, doesn't it? open the chart up to july of last year, you see the last time we were tangoing at these levels. back to you. >> nice comment on the pack. rick santelli. coming back with the super model gisele, the newest weapon, what tom brady, her husband, says about her business savvy in just a moment. for you, success is a starting gate,

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kid: do you pay him? dad: of course. kid: how much? dad: i don't know exactly. kid: what if you're not happy? does he have to pay you back? dad: nope. kid: why not? dad: it doesn't work that way. kid: why not? vo: are you asking enough questions about the way your wealth is managed? wealth management at charles schwab the other day we showed you the ad for under armour, and this morning, her husband, tom brady, was on "squawk box" commenting on the deal. >> she's a better businesswoman than am a businessman.

she's handled those things for herself and nobody does a better job than her. >> she out earns him as the top model for eight years running, and now you've mentioned this on twitter the other day. >> yeah, this angel martinez, ceo of the deckers brands, chairman and president and ceo. he has a great deal, just a fabulous deal with mr. brady. there's an ad, a tear-jerker, like the super bowl ads, with mom and dad and stray rescue dog, talking about the shoes. he's involved. i think the shoes, i looked at the line, the slippers before, but it's -- i know you don't do this, but this is a needle mover, this new men's uggs. it's going to work as well as the hoka running shoe and yoga shoe. lulu reports next week, i don't think it's a big number, but angel martinez is big. it's going higher. >> especially off the field.

no matter how many i need or how complicated things seem, it's not like you can carry them to the next game. >> that's a new -- >> i'm not jealous at all. there's no reason to be jealous of tom brady. he has nothing we don't have. he has everything we have. leave it at that. >> i like watching the gisele ad. watch that a few times. >> no, we all have better lives than he diz. >> stop trading with jim after the break. [ inhales ] [ male announcer ] at cvs health, we took a deep breath... [ inhales, exhales ] [ male announcer ] and made the decision to quit selling cigarettes in our cvs pharmacies. now we invite smokers to quit, too, with our comprehensive program. we just want to help everyone, everywhere, breathe a little easier. introducing cvs health. because health is everything.

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>> what's on "mad" tonight in. >> game plan, finishing fantasy. we have the kicker, going to put out our defense and richard sherman, they didn't even throw to him. >> yeah. >> follows me on twitter, 25, a genius. >> 110 yards -- >> by the way -- concussed, that's what i'm hearing. laci was concussed. up believable. the lacie thing worries me. >> have a great weekend. when we come back, jan is on the jobs number, don't go away. it works how you want to work. with a fidelity investment professional... or managing your investments on your own. helping you find new ways to plan for retirement. and save on taxes where you can. so you can invest in the life that you want today. tap into the full power of your fidelity greenline.

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booking.com booking.yeah! welcome back to "squawk on the street," we begin with jobs, august employment report coming in well below forecast. what does the number say about the economy? >> plus, tesla picking nevada for the factory, and what elon musk said about the decision and his company's stock price. >> today's jobs number might be disappointing, but we'll tell you about what big company is planning a huge hiring push. >> starting with jobs, though, the employment report for august

shows the smallest growth in eight months with payroll up 142,000, senior economics reporter back at hq with more. hey, steve. >> carl, thanks. august report was weak, sparking the debate over whether it's an outlier or trend setter. here's the key numbers. payrolls just 142. 83,000 short of the estimate. revisions, another sign of weakness bringing it down by 28,000 for the month of june and july. the three-month average a strong 207, unemployment rate taking down, but not because of hirings, the decline of the participation rate, average hourly earnings anemic. the weakness throughout the report, the economists react after the number was released st skeptical about the weakness. >> i don't believe it. i don't believe the data. it's not consistent with anything. anything. it's not consistent with ism. it's not consistent with adp. it's not consistent with

unemployment insurance claims. >> i think with everything else coming on on ui claims, ism, this is a blip. maybe things were stronger than they seemed before, but i think that the underlying trend is 200,000 jobs a month. >> which added if this is sustained payroll growth, i'm a fish. okay. it's perhaps not surprising that payroll's disappointing. there were extraordinary steady, they don't act that, really, and there's a run over 200,000 for the prior six months, i can't find that going back until 1999. the fed, though, likely to see the number as an outlier, but the market reads into how the fed thinks about this, double market psychology, and they believe it takes the wind out of the sails, lessens the risk of the fed, moving up the timetable, i think it's wait and see on constitution avenue and 21st street for the federal

reserve and less p rhetoric from the hawks and take off the boil of surprises that might have happened in september. >> it's a perfect number, therefore, for risk assets, thank you very much for the highlights. >> sure. >> for more of the impact on the margs, diana, chief managing director, and steve, web bush chief investment officer of the wedge bush dividend fund. diane, you looked for 270,000, must have. shocked by the print of 142,000 jobs. >> yeah, just to say a little. most important thing is looking at the number and headline out, i agree with steve and mark and al help and everybody who talked, this is an outlier more than a trend. it's important to look at the number, thought, boy, if you believe this number, believe pigs fly as well. you know, the underlying number was not what it was supposed to be. there's a lot of error in the data. the fact that manufacturing, we had a lot of auto manufacturing

in the month of july, and it did not show up in august because they were at work. that's not a decline. that's that they were already at work, working more than they usually do in the month of july when there's shut downs. we had a strike in retail, factors held the number down on that, but the numbers come back in the month of september. you cannot make it up. some of the sub categories on government, which i know steve makes the point all the time that government should know its own payroll numbers, on the state, local, and federal level, they don't add up. it's like someone did not have a calculator in the sub categories on government. >> wow. you write it off to the statistical noise and seasonality and expect a revision higher? >> it will be revised higher, it's noise, and this gives janet yoder to hold the hawks at bay. who knows with the revisions, but the hawks have three meetings, a dovish fed next year when the fed decides to raise rates, and they are in no hurry,

but from the perspective of what you hear from the fed, that tampens down the voice that pops a bit, squawk less, and have janet yellen hold them back a little bit more because this number is not what they thought either, that said, you know it's a -- the fed really has to see the hard core data, and they will not move until they see it or care if they are late and goes off revisions either. >> what we see is lower treasury yields, stocks are lower, but certainly off the lows of the day. steve, would that be what diane summed up? that perspective on the number a recipe for the gains to continue in u.s. equities? >> well, certainly a recipe for the fed to continue its existing power see, does not bring pressure to bear on them. i agree the number is an outlier, does not follow recent economic statistics, but at the end of the day, we're not seeing 4 00,000 or 450,000 in payroll growth in a normal recovery, even at 200,000, if that's truly the trend, we're still not

getting great employment growth, have a sputtering economy, and that's going to keep the fed consistent, the ecb consistent. these rates stay low for a lot longer. that's going to be a support for the stock market, and so i don't see anything changing any time soon. >> diane, wages, 2.1 year over year for two months in a row. what happened if this number had been stronger, and if this is an outlier, with restill on the cusp of wages taking off? >> interesting point. the composition does matter. seen this number of stronger with the retail jobs we usually see, we would have seen less growth, a big surge in manufacturing employment, more wage growth. it's not giving indication there. really, 2.1, 2% stuck on that range in wages since the start of the recovery, and that's not going to move one bit. >> you don't think the hawks put it in their pocket? >> no. hawks walk in with wings clipped at the meeting. that said, there's three means

to get the point made. haw haw hawks, where they stand, they would have done things differently, vote in three meets, don't vote when the fed decides rate, and that matters. they squawk, but not amplified by having a vote on the the fomc, and that's really important. >> steve -- >> you know, carl -- >> go ahead. go ahead, steve. >> the one thing i think is the fed is very comfortable fighting inflation and uncomfortable fighting deflation. i think that tends to let them continue the existing policy. they are not worried. if they see inflation, they are comfortable. they know how to fight that, but fighting deflation's a very different thing, and i don't think they want to move early or the hawks win the argument. i think rates stay lower for longer than anyone thinks. >> in terms of stocks, i want to get this in quickly. telecom and utilities out perform in terms of s&p groups, is that the strategy in the low rates world?

>> well, you know, actually, high ying ecstasy income securities are weak, they continue to be weak today, and telecom and utilities are not the yielders. look at bdcs, where they go for 8, 9, 10 % yes, stocks have been weak. under the impression they are going higher, it's a misconstrued fear and stocks will be bought. i look to buy higher yielding equities right here, right now. >> leaving it there, but thank you very much for the analysis, diane and steve. good to see you both. now that we got the numbers, did you nail the number? this week, we asked your tweets for predictions on payrolls. lucky winner receives a new cnbc pullover autographed by the gang, and we'll announce the winner later on in the show. dow's down 21 points, over to morgan for a market flash.

>> check out taser, higher after the new york city police department will equip a small number of video cameras. it's one of two types of cameras they test. the stock is up 4 .5%. back to you. >> thanks a lot. when we come back, the pulitzer prize winning journalist james stewart joining us, and jan is here for an exclusive, getting a take on the jobs number and the future of the economy when "squawk on the street" continues. work with equity experts who work with regional experts who work with portfolio management experts that's when expertise happens. mfs. because there is no expertise without collaboration.

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some disappointing news, the labor force shrinking, just 14 2,000 new jobs added in august, smallest growth in eight months. joining us this morning is new york times columnist, jim stewart. good to see you. good morning. >> good to see you. >> everyone says it's an outlier, what do you think? >> it's only one month. we'll know in two or three months pg. i don't think it's bad. not what they expected, but other signs are positive. this gives us clarity. you know, the fed wants to stay on the track that it has announced, which is, you know,

mid-2015 for the first rate increase, and, yes, this is data dependent, but that meens the data has to come out of left field. they want people to know whatted too. this is part of the whole campaign of transparency, and that reinforces either they stay on the announce track. ? buys time in other words? >> takes pressure off them. the fears is they tightened too soon. this is good. >> the only thing that gives me pause is we've seen this recovery so many times run out of steam when it was looking strong, a swoon people call it. so i just wonder how sustainable everything looks to you. i mean, you've been covering these fits and starts for years. >> well, look, slower growth is more sustainable than fast growth. we fwhknow that. it's not like the numbers went down, you know, employment grew. i think some pause for concern, though, is u.s. corporate profits. i mean, we're seeing this at the

same time that, you know, the european central bank is cutting. that means the dollar is getting stronger. that's going to bump up exports. i can see, you know, room for caution in the stock side of this thing. >> also, if you were a ceo and you see what's going on in the world, you have a trade war with russia with totalitarian moves, and the sanctions not showing up in the global economy or u.s. equity market, but if you're a ceo, it has to weigh on confidence. >> it does not make you optimistic. the other thing i find interesting this week if you notice that the italian 10-year yield is lower than the u.s.? now -- >> european, crazy. >> something is wrong with the picture. something has to move. they go up or down. i think it could be, you know, fairly bullish on the interest rate front, and, you know, easy credit, ceos like that.

look at the rush into the bond market. there's an appetite for borrowing, and they can do it cheaper. >> elon musk says the stock price is too high. david tepper says the bond rally ends here. does that give you pause when some of the names we like to watch weigh in on how things may be rich? >> they are worth listening too. i include myself in the group. fact is that none of us really knows. you know, that has eluded economists forever predicting the market. market times is really tricky, especially in a time like this. does it feel, you know, rich? it's been a long time since a correction. yes. does that mean we have to have one? no. >> what do you think of the m&a you see and the inversion trend that's been going on up against the fact that washington is trying to put an end to it, yet it comets to go. does that say something about the current environment we're in? >> inversions aside, tax driven,

but the m&a activity is healthy. that goes directly to ceo confidence. that's an issue there. fascinating to me that, you know, ceos buy high and sell low. there's a lot of reasons for that. i think that with m&a activity reaches this level, it's healthy economics because it shows confidence in the future. >> do you think ipos were going do get a big one soon, and probably a wave to follow that is going to hurt supply. >> you know, look, the supply's expanding, meaning prices may not be as frothy, but it's huge demand for this stuff, performing well this year. i don't see reason to see that pipeline. >> you're not worry about anything. >> i'm not super bullish really. caution is the right thing. you know, i would -- >> you sound like a strategist we bring on, come on, jim. >> it's a time where it's tame out there. >> people have hope that the

u.s. is out performing a lot of the world when it comes to the economic data and that's why our assets, whether they are stocks or bonds or the dollar continue to outs perform. >> the economy amazes me. the european central bank said what bernanke said years ago, we can't do it alone, we need government help. the u.s. never got it, and yet we're doing relatively well. maybe better if we had gotten it, but this economy is so powerful, so many decision makers, so flexible. >> dependent on qe, monetary policy, easy money, currency war type stuff? >> the tightening is a mais ri. we don't know what's going to happen when the spigot tapers off, but so far, so ee egood. >> we had an interesting confers about ceos who may be gay or may not. that's what you wrote about this weekend. >> a lot happened since then. when i was there, you know, i

made the point there were no publicly openly gay ceos at major corporations, and now there are some. i interviewed, partly because of the publicity, some stepped up. i write about two in particular this week. >> names we know? >> probably not. >> trevor burgess, his company went public weeks ago, and jason green fed gardener running pharmaceuticals in new jersey, one is 39, one is 41. they said we didn't think this would be a story, like why is this a story? in a way, this generation is way ahead of everybody else, but they say, well, i guess it is. yeah, we're happy to talk about it. they have fascinating stories, modest about it, but it's courageous to come forward. maybe now we won't have to talk about it anymore. >> right. after the court decision yesterday striking down the bans in wisconsin and the other state -- i can't remember which,

but it's st. patrick's day picking up steam. >> change is sweeping through america. it is interesting it was slow to reach the executive suite, but it's here now. i think it's, you know, it's health. >> always good to see you, jim. thank you. >> up next, tesla, why nevada won the factory, and the surprising comments carl mentioned about his company's stock price. all that after the break. when change is in the air you see things in a whole new way.

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tesla announcing claims to build the factory in nevada, bringing 6500 jobs to the area, and the ceo spoke to our phil lebeau about the plant and tes a tesla's stock price. interesting comments. we are joined by phil from nevada. what did musk say? >> reporter: well, talked about the reason why nevada was picked, and it comes down to this. the question is, whether or not incentives justify given the number of jobs coming here? this will generate 6500 jobs up and running, 3,000 of those

immediately. the estimated quick benefit? about $40 billion direct economic benefit to the state. the tax abatements alone, between 65 million and 1.1 billion, and mufg says from his standpoint, the nevada costs that worked out better phenomenon tesla than any other states. >>. >> are we set up for the factory? we have to think about logist s logistics, the cost of electricity generation, cost of land, the cost of labor, you know, all of these factor in because if we can't make the battery cost effectively, we can't make the car cost effectively, and then therefore can't make the car in the mass market. >> they hope to open by 2017

6789 in the meantime, it's not planning to open up or pursue any other locations for possible factories, and i want to look at shares of tesla over the last two years, up 918 %. the run in the stock, particularly over the last several months prompted me to ask elon last night, what do you think of the enthusiasm where tesla is among shareholders. here's what he had to say. >> i do think people sometimes get carried away with our stock, you know, honestly. you know, our stock price is high right now. to be totally honest. rather -- if you care about the long term tesla, i think the stock is a good price. if you look at the short term, it's less clear. >> reporter: mutalking about th valuation of tesla shares. bottom line is this, comments last night getting attention this morning especially from tesla bulls, hearing from them on fwiter saying it's out of

context. they were his own words, you heard it there. back to you. >> some of the best sound run in a long time, not to mention that gorgeous live shot today. phil lebeau in nevada this morning. hiring in the maritime industry speeding up, bringing new blood in the profession because it faces a crippling sthor shortage of skilled workers. a former marine, 20-year plan to move up the ship's ladder. hey, mary. >> reporter: hey, carl. i'm on the maritime tug boat scout, among other things guides in tankers and massive ships like this behind me into the port of los angeles. in fact, 40 minutes ago, we helped to dock that ship. now, i'm standing on the deck, but someday martin mcdonald hopes to be in the wheel house of the vessel like this captaining his own ship. the father of two and veteran of the war in iraq is at a three-month training program at

maryland's paul hall center. at the union-run academy, he's taking courses in firefighters r cue, life saving, and other requirements needed to launch what he hopes will be his last career. >> i've done military. i've done retail. i have done it, but this is my last go at it, and i think this is where i'll fit in the most. >> nose are welcomed words to an industry facing what one report says is a shortage of up to 147,000 officers. the shortage driven by growth and trade, energy, ageing work force, and new regulations that increase time and training needed to reach officer level. he expects six years to get on the officer track, and then another 14 before he captains his own ship. >> basically, just -- i'm starting at the bottom, just what they call a house piper. start at the bottom, work up.

>> now, as his skills and the licenses he obtains increases, so, too, will the pay. mcdonald is likely to start at $40,000 a year, but you know what? the captain's chair, he'll make in the six officials. carl, back to you. >> a great story, mary. mary thompson color on the jobs picture. when we return, hatzlus joining us live to talk about today's jobs number and the economy in a couple minutes. with fidelity's guaranteed one-second trade execution, we route your order to up to 75 market centers haths luz haths lus you expecte. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason serious investors are choosing fidelity. call or click to open your fidelity account today.

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big disappointment for the august jobs number as they expected above 200,000. what happened last month? jan hatzlus joining us, and great to have you back. 142, you were asked during the break, what happened? >> i think some of it is probably noise. i think you had some weakness in areas like food and beverage employment. there was a strike there that may have had something too with it. there was weakness in the auto manufacturing industry that could be related to seasonal noise issues. saying that, it's hard to explain all away. overall, i'd say it was clearly a weaker report, somewhat at

odds with the other indicators so it's not placing a huge amount of weight on it, but it is a data point that deserves some attention. >> would we be -- some say if you believe the number, believe pigs fly. would we be discounting the number if it overshot consensus this much? >> i discount things that our, you know, very far away from the trend of the other indicators to some degree, especially if there's some reason to believe there are some special factors. having said that, it's a data point that zephydeserves weight the economy is less strong than what you thought at 829. >> do you think your analysis will happen in the federal reserve analysis and how they take it? >> i think it's how they would discount the things a bit and discouraged by the fact that jobless claims numbers look good, surveys look good, and in general, there is a nice feel of momentum to the economy, and,

you know, we're probably growing at a 3%-plus pace, and i think that will not change. having said that, begin that we're close to the next fomc meeting with a lot of discussion about whether you get changes in the statement, you know, at the marg margin, this is against it. >> do the hawks lose votes in the near term? >> well, i think there was a discussion about whether the phrase "significant underutilization of labor resources" would be modified at the upcoming meeting. i think that's quite unlikely, and i think it was always unlikely, but this makes it very unlikely in my view, and then there's the discussion about the forward guidance where, clearly, some people are pushing for a change to the considerable time language, and i think, again, this report at the margin probably already against it. >> just to get in the nitty-grit nitty-gritty, the dash board, what to look for, the under

employment measure down .2%. average hourly earnings picked up, a little improvement, but not meaningful enough to get attention in any sort of way to change the language? >> easy to get attention, of course, but i think if you look at where we are now versus at the time of the july fomc meeting, yes, it's a tenth lower than it was, and up employment rate at the same level, job growth softer, and not a meaningful change to the wage numbers. it's hard to make the case that something sufficiently meaningful has changed to, you know, put this significant underutilization into the statement for one meeting and take it out at the next meeting. that seems sort of rash to me. >> so i assume more focus on the next number in october, but how many times do we need to see something more akin to what we've just seen for you to change your opinion?

>> if you have a sizable disappointment, this was 88,000 below the consensus forecast, if you had that again, hosk of course, harder to explain that away, and if it happened three times in a row, you'd definitely put, you know, a lot more weight on it, but at this point, you know, looks to me like this is stronger numbers, weaker numbers, and especially if there's particular reasons to think this is not the underlying trend. >> do you go up for the september number then in part because you think it was off this month? >> i mean, in principle, yes. in principle, yes, but, of course, there's additional information to get before the september report. >> take aways on draghi this week? your thoughts? >> well, i think inflation is below the target. it's very far below the target. not only in the peripheral where you have the price cost

adjustment, especially in germanyings and that's not what you need. you need to be close, at a minimum, close to the inflation target of 2% in order to facilitate adjustments. >> do full blown qe to get there? >> it's possible. the european economists increase their property on that from 20% to 30%, and there's definitely a meaningful probability they have to go down that route. you can make the argument, actually, this is qe. you know, there's a logical question around all this, but government bond purchases are certainly a possibility. >> washington post says germany has got to get out of the fixation on budget balancing because so does the bank come around? >> always a lot of focus on stability, on, you know, sound budgets in germany for, you know, variety of reasons, but i do think that, you know, having a lot of fiscal drag in an economy that's still quite weak

is, you know, problematic in the short term and does make it harder to get the sort of growth that you need in order to rebalance the economy. >> very quickly, jan, winding the stories together, are you worried at all here about the impact of a stronger u.s. dollar on our economy? >> not very much. i think the moves seen on the trait basis so far not large enough to make a meaningful difference not overall assessment to the conditions being supportive for growth. >> uncovered ground there. good to see you. >> thank you. >> up next, the employment report disappointed, but one chain is planning a hiring push. all the details for you. plus, the 20th anniversary of "forest gump," who tom hanks says forest would cross paths with today. he named some names. "squawk on the street" will be right back. t i. scene 3. open port twenty-two-oh-one-seven on the firewall for customer db access.

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the street," check out the lick mieded natural gas shipper, falling on news that the chairman, john frederickson, is selling a 34% stake in the company. one of the richest men in the world with a worth of $14.4 billion according to "forbes," and it's trading down 2 .5%. back to you. >> thank you. despite the disappointing jobs added, one company is hiring. this is notable out of kroger, the largest grocery store chain based in since gnatty, ohio. it's a story of consumer confidence, sales growth is solid as the recovery takes hold, and a story, as you can see, with the stock price. stock up more than 30% this year versus the 8 % of the s&p 500. adding to the portfolio, buying vitacost.com, and, guy,s, same

store sales growth, 4.6%. and kroger out with earnings next thursday for the second quarter. a solid growth story. >> wall market, of course, the largest supermarket in the country, many expected over the years it would eclipse the likes of a kroger. they seem to be operating well. >> upgraded in the middle of july, and one of the key reasons cited in that was that walmart is less a threat from a grocery store perspective as they shift to the neighborhood store and population shifts from the rural areas where walmart has the stronghold. it's been benefitting kroger. >> that takes us to dollar stores, to the next story, in fact. >> of course. >> the rejection of the latest bid from a dollar general to purchase family dollar for $80 a share, rejected for the second time is dollar general by family

dollar this morning citing the continued antitrust risk in a potential transaction. you may recall the dollar general raised the bid to $80 in cash and willing to divest as many as 1500 stores, but in a press release this morning, family dollar comes back and says, we don't think 1500 is still enough. we remind you as well that, yeah, you can keep saying that all you want to do is open up a dialogue with us, get an opportunity to talk to us, but while our agreement with dollar tree permits those kinds of discussions with competing bidders, it's only if it's reasonably expected to lead to a proposal that is not only financially superior, which, in this case, it is, 80 against the 74.50 and stock in the current deal, but reasonably likely to be completed on terms proposed, and that's where the companies diverge in the opinions about the antitrust risk of said deal.

with family dollar and board of directors with the belief that the federal trade commission would argue it needs to divest thousands of stores, and as i said, of course, dollar general believing that 700, and speaking to the ceo of the country this week would be enough to do the job or less prepared to go to 1500. in the press release this morning, again, unusual, the board member of family dollar, of course, significant shareholders in family dollar, and, also, most importantly, motivated solely by getting what would be the best economic value for the shares and overall shares comes back again to the argument saying, we're focused on delivering to shareholders the highest value with certainty. the deal in hand does just that, taking the antitrust risk off the table by committing to divest as many stores as necessary, and that's new today, dollar tree willing to do that to obtain clearance on the antitrust front, and as for

where divergance is, they come back to the arguments saying far more than 1500 family dollar stores in zones where pricing is based solely on the presence of local dollar general stores, and thousands more on zones pricing where it is based in dollar general and walmart stores nearby. certainly, they do not say it in the press release, there is a belief on the part of some that dollar general is not serious unless it is willing to go to the so-called hell or high water mark saying we're willing to do what it takes to get the deal done. they can keep raising the price, but it does not mean anything other than perhaps the belief on the part of family dollar they are making sure the dollar tree deal will never happen when and if it goes to the vote amongst his own family dollar shareholders. >> could go hostile and go to the shareholders. >> could, but in order to close the offer, they need to receive federal trade -- the antitrust approvals, and so you would be having the same frame work in front of you.

that might answer the question, but by then, you is the opportunity to close the dollar tree deal far ahead of that, put it to shareholders, see what they think, interesting. a lot more to go. >> keep the names straight. impressive. >> i try. >> it is one of the tougher ones to deal with, yes. daily prepared to feel old alert, "forest gump," celebrating the 20th anniversary. they celebrated awards, and it's in imax this week, and hanks was asked which people in history would be in forest gump if the movie was made today? he says, quote, all the political figures would be too obvious so forest would have chat the up mark zuckerberg and the twins how it's nice if you had a book showing a person's face and make a friend. zuckerberg, i get, the twins -- a stretch. >> i don't know about that. mama said he would have gone high when waters rise in hurricane katrina, there to save

people, nice as well. what a character. coming up, did you nail the number? find out who the lucky winner of this cnbc's pullover is signed by the whole "squawk on the street" gang. i signed it on david's back. we'll talk to the winner when we come back. when fixed income experts work with equity experts who work with regional experts who work with portfolio management experts that's when expertise happens. mfs. because there is no expertise without collaboration.

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hey, rick. >> hey, carl. the guest today, he needs no introduction. thank you for taking the time. unemployment friday. jim, what were your thoughts with the report this morning? >> i thought it was what you would have expected. i know that most economists try to say that the results were sub par, but it's fitting with the economy the last couple years, trading 224,000 private sector, same number in 2013, 2012, and 2011, and those years produced sub par growth.

there's no reason why to think this is all the sudden a sign that the economy is going to break out. ? moving fast. this morning, i 4 a calm discussion with the group of economists and analysts on the number, and a couple reasons begin not to believe it, not sm strong, consumer confidence strong and can you add to that? >> sure. the postcrisis era, a lot changed. i think because we've lost a lot of the weak purchasing managers. >> exactly what i say, and you're the reason i bruought it up. >> they've left the survey force. claims falling to are years, payrolls growth not changing. >> put them on a chart, claims going down and xwobs going sideways. >> that's been the postcrisis era as well and consumer -- >> where would the next big bit of news on initial jobless claims be? >> if it rises.

>> i agree. >> if it fall, doesn't tell us anything. it's not rising. you mentioned consumer confidence. always a suspect indicate perp follows the stock market. tell what's it did last month. look at indicators. maybe had some pre-crisis 2006 and earlier metric ws we could use. not good indicators yet that's what we cite for why the economy is strong and five years after the recession still waiting for the economy to get strong. >> i'm with you there, thut it's an economy that isn't in recession. where my next question is. we're not in recession. we don't grab into the trends i'd like to see, the sustainability of the positives, but certainly not in recession and from what i sit, i don't see us going into one anytime soon. europe's the outlier there. why 0 rates? we have zero rates. will that really end in 2015? >> my call, never revise rates

for a date in the future. economists do, in six months the fed will raise rate so in six months they can say the fed's going to raise rates in six months. no, i don't any they'll do it. we don't have the a recession. i think we have weak growth and need to start asking the question, why is this economy been so anemic? instead we keep saying, right now it's going to start taking off. we've been saying it three years and it just hasn't been materializing. >> mario draghi made the club of stimulus larger. here's what i noticed today. the dax on a way to a negative close. the number came out. closed up. not a lot, still closed up 12. we see a lot of metrics around the globe. it's all correlated. one outlier, once again, it's significant, i think, the strength of the europe o the eu. heads of central banks would like to roll the snow snowball off a steep hill? >> agree. afar as quantitative eeasing

invented by the japanese in 2000. had it in the u.s., not getting it in the ecb. has it ever worked? anywhere it's tried? define worked. happen had produced jobs and gdp growth is it produces higher asset prices, why wall street loves it, but never really produces jobs. >> wall street does love it so much. almost a shame. i think that's where the chatter would be about managed prices. no. okay with it because of the money flow there. jim beankh u bianco, always int talk to. >> rick santelli, thanks. over to jon fortt with a look what's coming up next on "squawk alley." >> lots of great stuff. talk to the reporter who interviewered tim cook and got his latest comments on icloud security. what apple will do about it and dig into what elon musk has to say about tesla's stock price and talk the future of sports online and heard about the

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welcome back to "squawk on the street." check out gap. that stock is falling after the clothing retail reporting a 2% drop in same-store sales. missed forecasts of a 1.8% increase. stock currently trading down 4.5%. for the year stock is up more 2457b 13%. david and sara, back to you. >> all right. thanks, morgan brennan. our nail the number winner for august, non-farm payrolls. where's the prize. show the prize. david will hold it up like "the price is right." we have a winner. >> extra large. >> i hope he's a big guy. ronny squires from alabama. his guess, 139,000, which means, ronny, if you're on the line, you beat every single economist on wall street. nobody predicted anywhere near that. the winning number, 142,000. what's your method? how did you come up with your number? >> i do a lot of traveling

around the country and there's still a lot of talk of no jobs out there, and i watch y'all on a regular basis, just about every single day when i'm near a television, and i just don't see it. i don't know if the people that is on wall street is not really getting out and seeing what's going on, but whenever you go to small towns like i go to and stop at truck stopped and what have you, talk to people and see what's really going on, then, you know, you just don't have much confidence in some of the numbers that you hear. you know? that was my guess. >> what do you do, ronnie? what's your business? >> well, i'm semi retired. and in 2007 i started a little transport business. i got a lot of friends, though, across the country and everything. friends and acquaintances. particular time to time get to trapt few animals or people's pets, in other words. buy a pet or give a pet away, or

shelters will call me. i do a lot of shelters and will transport, you know, a dog or two to a -- a home that will take care of the pet to keep it from being utheuthanized. something like that. >> i like it. i like your method, seeing what it's going on across america. ronnie squires, nailed the number winner. lucky resillient of the xl sweatshirt in time for fall. it is beautiful. david wants one. >> love it. for the fall season. >> did i not tell you it would be a negative number? i should have nailed it. >> but you did not venture a guess. therefore -- >> because i'm a negative person. >> therefore do not win. ronnie wins. >> carl a good prize. see wa it is next time around. >> it is perfect for fall. fashion week here in new york, too. couldn't have timed it better. have a good weekend. see you later. it is almost 8:00 as goalogle headquarters.

11:00 a.m. on wall street and "squawk alley" is live. ♪ no . welcome to a friday edition of "squawk alley." joining us, henry blodgett, good to see you. kayla tausche, jon fortt at post nine as well. first up, closer to apple's big launch event, ceo tim cook speaking out on the celebrity photo scandal. cook said apple will add new security alerts and notifications for icloud accounts saying none of the leaks came from company serve rs. lo