♪ ♪ ♪ ♪ good friday morning and thanks for joining us here on "squawk alley." carl quintanilla is on assignment, with us is kara swisher and john ford here at post 9, there's a lot to talk about in tech. but we have to start with the market. stocks in full-on rally mode since they opened after the u.s. added 223,000 jobs in the month of april. bob pasani is on the floor with some of the biggest movers on ha is shaping up to be in the markets for the dow and the s&p since the end of march. >> what's impressive kayla is the breadth of the rally, 4-1 advancing to declining stocks,

but it's not just that, everything is up. let me show you the dow movers. when you have boeing, a an industrial. home depot, a consumer discretionary, and microsoft, a technology sector. all up 2% or more. those are different sectors, nine of the 10 sectors on the s&p are up 1% or more. that's very rare. up health care up, consumer discretionary up nicely. technology up nicely. consumer staples, virtually there up nicely. financials as well on the upside more than 1%, that's a really broad rally. and even bonds i'm seeing remember bonds have had a rough week overall. suddenly you've got treasury bond etfs, you've got the middle one, hyg, corporate bond etf and the high yield, the jnk, all of the nyse and the decent volume

behind them. the s&p 500, well we're getting this boom here today, and remember, essentially we've got to get to around 2118 to get to a new historic high, we're definitely moving in that direction, only five points away. kayla, if i had anything to complain about, i would say the volume is a tad on the light side. we've seen the heaviest volume days when the market has been moving down in the last couple of months, it would be nice to see a little heavier volume on an up day, we'll see how we end up the day. back to you. >> one of the complaints on the rally days, to see 260 points up is pleasing a lot of bulls, bob pasani on the floor. thanks so much. a lot of tech movers have been thanks to m&a chatter. the week has been full of it. according to "reuters," microsoft is not weighing an offer for salesforce, earlier reports had pegged the company as a possible buyer. salesforce stock is down about 2.5% on that news. meanwhile, yelp is up 5.5% after reports that the company is

exploring a sale. it's been trading higher since yesterday when the report came out. it got halted yesterday afternoon. because so many shares had traded, i wanted to bring kara swisher back in on these names. we'll get to yelp in a second. but it's been written the best deal for salesforce is no deal at all. do you agree with that? >> yes. i don't agree with him, i can't believe he wrote that. i think it's interesting what's going on with all of these companies and there's a bunch of them beyond these ones that have been mentioned, you have to think about what's going to happen to yahoo. what's going to happen to twitter. it's an interesting time to see if there will be more consolidation or if the companies will remain independent. >> so, what do you make of all of the chatter around salesforce and the viability of it getting acquired at all? this is not a company, unlike yelp, this is not a company that's seen a big drop.

it's got a huge multiple, only four or five companies that could justify taking it on based on their status and big cloud data center landlords, what do you make of the fact that there was chatter at all. >> because sachin nadelia has it on his short list. i heard that linkedin is another thing he is super interested in. it doesn't mean he's going to get them if you're microsoft, you've got to think about the future and if you own something like salesforce it would be an important addition to their company. do they want to sell it or remain independent? it's a very successful company on their own. are they better with microsoft, do they have to sell? there's only like two or three companies who could buy this company. and that's just a thing that you think about when you're any company, i think. >> kara, what do you make of the yelp news, even with the gains that we saw yesterday, the stock

was hard-pressed to get back to where it was even before it reported earnings. would you think with the takeover premium it would get well beyond that. are there some real existential problems for a company like yelp? and who buys it? >> well, there's lots of buyers for yelp. i would leave google out because of the acrimony between them and the previous relationship they had. i think yahoo certainly could be a buyer for yelp. any of the asian companies could be. a alibaba, any of them interested in local advertising. i think the issue for yelp is it's doing very well. probably the leader in the local reviews. the question is, can it get big centre can it grow itself? is it better to be attached to a larger player? i've heard conflicting issues of whether there's really a there there on this acquisition thing it could be something just put out to float rumors. that's what you're going to see a lot of floating rumors, maybe a little manipulation, balloons

to go up and see what happens. i'm not so sure there's any active talks going on anywhere at all. >> kara, how much of this might have to do with the action in yelp and how it's been treated over the last couple of quarters, they were charging a premium for their advertising, their display advertising, it was more in the traditional vein. you had a rise that the companies demanding they justify it if they're charging a premium. is that going to continue to affect yelp going forward, do you think? >> yeah. i think programmatic advertise something eating everything. i was on a panel last night where everybody was talking about programmatic. so display advertising is going to suffer. this is something that yelp and others, everyone in a content business has to think about, what happens in that environment. the question is, can they still you know google is really a big competitor to yelp. and you know yelp has been very vocal in various regulatory areas, but you can't win by you know, that way.

they've got to win in the marketplace, as difficult as it may be for them. the question is, do they need to be with a bigger player, door they do it on their own? >> well jim cramer chimed in saying his ideal would be yelp merging with grub hub and post mates, the perfect delivery machine. >> that's jim's scheme. >> listing a funding target of $100 million, for fitbit's ipo. last year they earned about $138 million. compared to $52 million loss in the previous year so far this year as of the march quarter, about $48 million in that income. it did cite some risk in the s1 filing. including the new apple watch. kara, ha do you think about the timing for this company, and -- >> i was like wow, they're

making money. a company that's making money, that's nice to see. it's an interesting -- what? >> maybe add to what you were going to say. why is it a company like fitbit that is making money, has to go public to raise $150 billion. when we've seen quarter-million-dollar private raises? >> a lot of companies are staying private. it's one of the steps on the way for different companies and every company has a different decision on how they want to move forward with capital raising and different things like that they've done a really great job considering all the competition in the arena. and you know they're sort of the quiet one. apple and up are very sort of stylish and high-profile and fitbit is kind of, i don't want to say plaudit because it's a health activity tracker. but it's been, people seem to really like the product. and i think they need to, given this competitive environment, they need to put a stake in the sand and this is their stake, i guess. >> competition, kara, the very

first risk factor that was listed in the filing. apple, google, lg, microsoft, samsung, you could keep going. i know that recode has covered jawbone's recent fund-raise, the competitive landscape for fitbit being public in a world where a lot of those other companies are not? >> they have a product people seem to like it doesn't mean there has to be one and you know, if you think about the differences, their competitor is probably jawbone compared to apple watch. i don't think the health aspects of the apple watch. they're from dedicated fitness people so the fitbits aren't looking tore fashion conscious. not looking to be the swiss army knife of watches. it's a category of people who like to do fitness and track their movements and they've got a very good product in the market. >> are they in danger of becoming the blackberry of the smart watch category? people love the device but they maybe didn't switch to software

fast enough when the big guys were coming in to eat their lunch? >> no, i think i like that they're sticking to sort of the fitness area. i think if they went right into where apple is going, which again i do call it will swiss army knife of watches, it does everything. but i think, i think sticking to their knitting is probably the smartest thing, that's what they do well. i don't think it's quite comparable to a blackberry. it's just a very basic activity tracker that works and people that use it like it. and there's probably a big market for that. and the question is, you know, who comes in and does one that's like theirs and compete well. and i don't think any of them are quite like theirs, except for perhaps the jawbone. >> finally, kara, it's been a week since silicon valley and the broader business world lost dave goldberg, the ceo of survey monkey and the husband of facebook's sheryl sandberg. he passed away last friday. you've written a lot about goldberg in the last week. you called him a mensch, a stand-up guy, your thoughts on how the valley is going to be

recovering from this loss. and what lessons they've learned. >> well dave was a special person. and everybody writes when someone dies that they're fantastic and they're lovely and they'll never be the same without them. >> he really was different than most people and the way he was different was that he exemplified all that was best about the valley. there's a lot of hype here and a lot of loud mouths a lot of consistent pressure on everyone and dave was one of these people who knew who he was, knew what he wanted and was very generous and open with his time, with his advice. he was very successful and he didn't wear it on his sleeve. he didn't have to show off. he was very very much in the background and at the same time was present. that's a difficult thing to pull off, the kind of confidence he had. most of all he was super-supportive of sheryl and all her efforts around gender issues and all kinds of things because he himself as i said before, you know, these issues were important to him, too.

and so you don't get a guy like him very often. it's incredibly sad for a lot of us. when we actually stop and think about how important he was, without necessarily noticing it while he was living. but he was a great guy and he was a mensch, that's the best way to put it about him. >> and the volume of tributes that keep coming in, bill gurley put one out a couple of days ago, a testament to that we thank you for helping us remember him. kara, thanks for joining us today. >> a quick check on the markets, the stocks surging, the dow trading up around 262 points. near session highs, s&p up about 1.27%. near session highs, when we come back the u.s. adding 223,000 jobs in the month of april, blackrock's chief investment strategist is going to join us to break it down. plus behind nike's big plans for the wearable market. we'll hear from ceo mark parker and one chinese drone maker

getting a massive $8 billion valuation. the company will join us with drones in tow later this hour. . being a keen observer of the world has gotten you far, but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea powered by active trader pro. another way fidelity gives you a more powerful investing experience. call our specialists today to get up and running. ♪ we will ro♪ you anthem ♪

call 1-800-royal caribbean or your travel agent today if you want to succeed in business, mistakes are a luxury you can't afford. that's why i recommend fast, reliable comcast business internet. they know what businesses need. and there's a no-mistake guarantee. if you don't like it, you have thirty days to call and get your money back. with comcast business internet, you literally can't mook a mistick.

i meant to say that. switch today and get the no mistake guarantee. comcast business. built for business.

it's not so strong it will frighten the fed. wage growth was restrained. this will probably give the fed a little bit of time. although we think they'll start to live off in the fall. from an investment perspective, it was neither too hot, nor too cold, which is why you're seeing

the response from marks. >> to think about two days ago we were talking about maybe the dollar rally was over. oil had bottomed and the stock markets would start paring back as rates and yields started rising, has that line of questioning changed? >> well, no i think the immediacy of it has changed. it's very important when you think about what's happened in the bond marked to realize this was a very frantic trade particularly for european sovereign debt. so the very violent reaction we've seen where u.s. yields have backeden and german yields have backed up. we're still in an environment of modest growth and while inflation expectations have stabilized. it's worth pointing out. inflation is not a risk in most developed markets right now. >> so russ, take a step back for us, given everything we've seen over the past couple of weeks, we had an earnings season, we were expecting to be pretty bad. maybe not so bad, we had the jobs number, could have been

worse or are we in a could have been worse scenario, wither there's maybe a little hint of optimism because of that? where do we go next week? >> i think it is a little bit of a it could have been worse, coupled with still a little bit of the lingering bad news is good news, this was not a bad jobs report. but i do believe if this had been a 300,000 print. you would have not seen the same reaction, bonds would have sold off. equities would have sold off. the reason the market likes this number it alleviates concerns that q 1 was a warning about slow growth, it won't produce an imminent liftoff from the fed this was a very market-friendly number. >> what's the playbook, going forward if june is off the table. now we're looking at the back half of the year, that's where we thought we were. >> we're back to where we were. >> what do you buy what do you make sure you don't have in your portfolio. a lot people are talking about the two-year being the most rate-sensitive. it's know it's rallying, but do you stay away from things like

that? >> i think you have to expect that the fed going to lift off in the fall. think you need to be somewhat concerned about duration. we're not expecting a melt-up in rates. a number of factors, low inflation, lower weak yields in europe and japan that are likely to conspire to keep rates from rising too much. mangs managing the duration in the bond poif and the equity portfolio. think about the rate-sensitive parts of the market. utilities, reits that have benefitted from rates being ultra-low. even if we're seeing a modest pick-up in rates, that calls into question whether those valuations are sustainable as rates start to normalize. >> russ, always appreciate your commentary, the chief investment strategist at blackrock. >> interesting spot we're in with the market. up next, wearables are more popular than ever with the release of the apple watch and after shutting down the fuel band, what's nike going to do next in the wearable market? ceo mark parker will explain and watching the markets rallying

since the open. we're back in a moment. ♪ ♪ at chase, we celebrate small businesses every day through programs like mission main street grants. last years' grant recipients are achieving amazing things. carving a name for myself and creating local jobs. creating more programs for these little bookworms. bringing a taste of louisiana to the world. at chase, we're proud to support our grant recipients, and small businesses like yours. so you can take the next big step. so open an account with schwab. and when a market move affects, say, a cloud computing stock you're holding, we can help you decide what to do. with tools that help you see how market activity is affecting your positions. so when the time comes to decide whether to scale in or scale out... you can make your move, wherever you are. and start working on your next big idea.

♪ and start working on your next big idea. it begins from the the second we're born.er. after all, healthier doesn't happen all by itself. it needs to be earned... every day... using wellness to keep away illness... and believing that a single life can be made better by millions of others. healthier takes somebody who can power modern health care... by connecting every single part of it. for as the world keeps on searching for healthier... we're here to make healthier happen. optum. healthier is here. when a moment spontaneously turns romantic, why pause to take a pill? and why stop what you're doing to find a bathroom? cialis for daily use, is the only daily tablet approved to treat erectile dysfunction so you can be ready anytime the moment is right. plus cialis treats the frustrating urinary symptoms of bph, like needing to go frequently, day or night.

tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or any symptoms of an allergic reaction, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use. insurance coverage has expanded nationally and you may now be covered. contact your health plan for the latest information.

the trans-pacific trade partnership. in about an hour our sara eisen is there where she spoke with the ceo of nike and they didn't just talk about trade. sara? >> no, we talked about the business, we talked about innovation, which is so key to nike and the trade deal that president obama is pushing for here at nike headquarters today. mark parker, the ceo, says will help nike bring american jobs back to the u.s. actually they've committed 10,000 jobs over ten years and new manufacturing facilities if the trade deal does go through. but given it's "squawk alley," i wanted to share some of his thoughts about where they stand

on digitals and wearables, with the fitbit ipo announced yesterday. i asked him what he thought of it and the category given that nike itself exited the hardware business, here's what he said. >> we remain committed to digital connections with consumers. not only in tracking and sensing through partner relationships. but also just the complete digital ecosystem. how we connect with consumers in terms of commerce, how we connect with consumers through communication. and then certainly sport experiences. that we create. so this is going to be, this is going to continue to be a really important part of our future. and really central to our brand. >> what is the future going to look like between apple and nike? obviously tim cook sits on the board and now they've got a watch with their own fitness capabilities in it. where does that partnership and friendship go? >> it continues. it continues and we're excited about the potential that the apple/nike relationship has. nike plus run something actually

an app that can show up on your watch and it's a great experience. if you haven't tried it. you should. we have over 60 million users in our community, digital community. using our apps, we're continuing to develop apps and experiences, we're working with apple, but other partners as well. >> so more from apple and nike? >> more from apple and nike. two great brands, lots of potential and opportunity and that continues. >> that was an important statement, at least for investor who is like to see the two companies, both at the top of their game right now, doing more together. i mentioned that tim cook actually sits on nike's board. he has over the last decade. so many people are expecting bigger things and bigger collaboration. but it is an interesting question, guys, with the apple watch. nike plus is an app in it. but apple obviously has its own functionality when it comes to fitness applications. i think mark gave some pretty

good hints that there was more to come between this partnership. >> he certainly did. another one of the interesting parts i thought of the interview you did is when you asked him about jordan spieth, you asked him about steph curry and how did nike miss out on these top athletes, letting them go to under armor. what did you think of his answer? was he gritting his teeth, ticked off at the marketing department? what was going on there? >> mark parker plays it cool. he will not mention his competitors, never goes there. but obviously he was very diplomatic about it. he said i wish steph curry well. i'm glad to see his success, but he also said look we back our own athletes and we're very happy with them and we're going to continue to work with them. because that is core to nike's philosophy and the way it does business. taking insights if those athletes. branding those athletes. it is a question that people have. investors in the broader public right now, given that both of those athletes that you

mentioned, steph curry and jordan spieth are at the top of their game and they're being sponsored by under armor, a company with $3 billion in revenue, versus nike, a company with $30 billion. obviously mark parker will not go there. he'll backing his own athletes and playing cool, playing nice, not getting dirty there. >> well nike stock up 1.4% on today's news and certainly some of the interview pieces from you, sara. so safe travels back, hopefully can you score one of those pair of red/white/blue nikes that the president sports. >> i'm hoping for a look at them. >> we join simon hobbs in europe where all eyes ostensibly on the uk. >> yes they were, until we got the jobs number. this is powerful rally on the european market.

that's partly because not only the jobs report which is quite disappointing when you talk about interest rate rideses, the treasures rallying and that's meant that the bonds have rallied in europe. you've basically turned round or you've reinforced the turn-round on the route we had earlier. yields are heading downed and you've seen the massive explosion on the equity markets. as kayla mentioned, it was all about the uk most certainly as david cameron, the uk prime minister on the conservative side got through with a slim majority to govern for a second term. despite the fact that everybody predicted it would be a hung parliament. it may be that uk rates rise more slowly because he said he'll be more aggressive on the 5% budget deficit with the uk runs, extraordinary. and at the same time, you have the whole question of when this guy will call a referendum on the uk being in the european union. meantime if you look at the individual moves on the market today, it's quite interesting that a lot of the home builders

are higher because the opposition, was threatening rent controls and a mansion tax. they've done well. the banks have done well because there's a belief that the cameron government, without the need for a coalition, will be less harsh on the banks, certainly the opposition had spoken about a levy hike, they were going to make it more severe, so the banks have done well and at the same time, a lot of the kind of the subcontract evers that would do well from the british government putting more work out to tender, have done well and the owner of british gas in the uk has done well, up 7%. because the opposition was talking about bigger price controls, price freezes on energy. so you see this kind of eruption across the board in the uk. and on european equity markets in general. finally let me show you where we are on syngenta, monsanto hassed by $45 billion. the gain almost 25%. i find that extraordinary that report was out last week. you could have easily got ahead

of that. >> the reaction then was muted to say the least. >> it was, partly because it came out on a thursday and we didn't trade until the monday. >> simon, have a great weekend. up next, iac's barry diller revealing new details about tinder to our own david faber. we'll tell what you you need to know. great day in the green for the markets, the dow up 250 points, the s&p and the nasdaq are up as well. today has put the markets back in the green on the week, we'll tell you more about what's moving when "squawk alley" comes back.

here's your cnbc news update this hour. french president hollande greeted secretary of state john kerry during a ceremony in paris. to mark the 70th anniversary of the end of the world war ii in europe. champ d'elysses was closed to traffic to make way for a procession of official motorcades and mounted military escorts. the italian navy has located what is believed to be the fishing boat that capsized and sank last month with an estimated 800 migrants on board. it located the vessel about 85 miles northeast of the libyan coast. it's undetermined whether the boat will be raised or not. a violation of lead paint standards has been prompted a recall from baby's dream furniture. the piece were sold from march 2014, to march of this year. and new study finds

self-regulation by the food industry has not improved, the nutritional quality of foods advertised to children. researchers found 80% of foods advertised to kids still fall in the poorest nutritional category. that's our cnbc news update. let's get back to "squawk alley." >> thank you, sue, we're seeing a broad rally across the major markets, surging after the april jobs report showed that the u.s. added 223,000 jobs. march was revised slightly lower. but you can see how the market is receiving that. the dow up by 262 points. the dow and the s&p are now positive on the week. nasdaq has been struggling to stay in positive territory for the week. but it is there right now. so far dow losers, john, for the week, it's actually tech. intel, microsoft and apple are

still negative on the week. interestingly enough. >> well microsoft may be rallying back on this news that they might not be spending a bunch of money on salesforce. david faber doing what david faber does, a couple of huge media interviews this morning. he sat down with barry diller, chairman of iac and les moonves of cbs. david faber joins us now with more. >> interesting morning. we started with mr. diller, we'll start with him here. he runs iac or he's chairman of that and expedia. as you well know. john, iac, an interesting collection of businesses led by its match service if you will. basically all the different dating sites, the one that has really attracted a great amount of interest from investors is tinder, it's only two and a half years old, it was incubated inside iac, if you will and it is growing with extraordinary pace. that said, investors, while they're trying to figure out the valuation are also still trying

to figure out just how much of it iac owns. because while the company does control it fully, it doesn't own it fully. and so i tried to get the answer. >> we own the majority of tinder. >> right. is that 95%? >> no, it's not 95%. it's less than that. >> why not just put a number out there? >> i actually don't know why. >> you don't know why. >> i don't know why we don't. it's never really come up. no one's ever said to me tell my explicitly what the number is. >> rolely? i've had people say you've got to ask them how much they own, because we don't know. >> we own more than 60%. >> more than 70%? >> you now something? i don't know. >> there you have it, he doesn't know. so we don't know. the point is they own at least more than 60, perhaps as much as 70% of again an asset that many believe is worth a great deal. now that of course is something as mr. diller said of a speculation. one thing that's not --

different applications for this dating app. in fact mr. diller shared a new one that they may be unveiling that may allow you to use tinder in a bar. >> technology brought, brought to this relationship thing -- flirting thing, whatever you want to call it thing, is a fantastic tool. you know, the new idea for tinder, which they'll probably kill me for saying is essentially in a small, you know, area, a bar, a large event room or whatever, it will tell you who is in the room and essentially how far away and that i thought that's not a great idea and then somebody said to me, you don't understand. guys and girls are shy. about that first, you know, that worried that it's not a yellow light, or a green light, but

it's a flashing yellow light and they'll be humiliated. so this kind of, this is kind of a quicksilver to get you over the hump of being bold. that's a great tool for people. >> if only they had had these tools when i was young. we now move on to mr. moonves, cbs reporting earnings after the bell. they were a bill better than people anticipated. the stock not doing much today. a focus for many investors is on selling advertising, the up-fronts are coming up. i asked mr. moonves what can we expect? >> next wednesday is our up-front presentation, the networks go a couple of days before that. we're anticipating very nice increases in cbm growth. we anticipate more volume. once again, we think broadcast is the only safe bet out there. a lot of conversations about digital advertising and obviously we're an important player in that. we have a lot of digital sites. >> interesting to note that both mr. diller and mr. moonves noted how hard it is to really get any

traction in digital advertising, given the overwhelming amount of it and the programmatic buying that goes on. did have an opportunity as well to speak to mr. moonves about this evolving world that we're a part of right now. namely all the smaller packaged bundles of video programming that are or soon will be available. is that a threat to cbs? or can they be a beneficiary? >> in a smaller bundle, a bundle like verizon is talking about or that sony is talking about or perhaps apple as well, the smaller bundle we will be a more important part of it. in a 20-channel universe, or a 500-channel universe, you have to have cbs. you can't live without us. >> and that of course is the key question for investors, kayla, back to you. >> david faber, on the mogul beat this morning, fantastic stuff. we'll see you later on. when we come back, you are looking right now at a live

drone shot outside of our one market studios from chinese drone major maker, dji, getting an $8 billion valuation. and a top exec of the company will join us live. but first, rick santelli you've got a big guest to talk jobs. >> ed lazeer, we're talk about the financial fight of the century. in this corner, decent job growth. in this corner, dropping volatility. the bout after the break. i sure hope so. with healthcare costs, who knows. umm... everyone has retirement questions. so ameriprise created the exclusive confident retirement approach. now you and your ameripise advisor.... can get the real answers you need. start building your confident retirement today.

that's a good thing, but it doesn't cover everything. only about 80% of your part b medical expenses. the rest is up to you. so consider an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement insurance plans, they could save you in out-of-pocket medical costs. call today to request a free decision guide. with these types of plans, you'll be able to visit any doctor or hospital that accepts medicare patients. plus, there are no networks, and virtually no referrals needed. join the millions who have already enrolled in the only medicare supplement insurance plans endorsed by aarp... and provided by unitedhealthcare insurance company, which has over 30 years of experience behind it. with all the good years ahead, look for the experience and commitment to go the distance with you. call now to request your free decision guide.

♪ [ male announcer ] whether it takes 200,000 parts, ♪ 800,000 hours of supercomputing time, 3 million lines of code, 40,000 sets of eyes, or a million sleepless nights. whether it's building the world's most advanced satellite, the space station, or the next leap in unmanned systems. at boeing, one thing never changes. our passion to make it real. ♪

coming up, the halftime show from post 9, stocks on the rise big-time today. was that the goldilocks employment report? is it just right for the brul notice market. and the chicken run, bojangles trading well. should buyers beware of the casual food space. and out to the west coast, beaverton, oregon, president obama stops by nike headquarters, he's talking trade, you know he's going to cothe jobs report. all of that in just a few, guys? let's get over to chicago where rick santelli has the santelli exchange. >> i would like to welcome my guest on the jobs friday, ed lazeer, thanks for taking the time. >> there was a time and maybe i was one of the early shouters of jobs, jobs, jobs. but now i think we have to yell

productivity, because increasing jobs without increasing the output, without adding to gdp means we have more people working but smaller pieces of the pie to carve up. can you dig into that notion? >> yes. absolutely. i think you're right on target with that. one of the things that happened was during the recession, productivity continued to grow, that was a good thing. unfortunately, we haven't had sustained productivity growth at the kinds of rates that we should have enter a recovery. and i attribute a large part of that to the fact that investment has been weak. capital expenditures hasn't been where it should be so we're not having an economy that's growing the factors of production in the way that we need them to grow in order to have high productivity growth. i'm kind of with you on your take in terms of why that is think there's policy explanation force that. but the bottom line is that because we are not having productivity growth in the labor market, we're not having wage

growth so the job growth is a good thing. but it's not, it's not symptomatic of the strength in the labor market. i think it overstates the strength of the labor market. >> this morning i listened to simon with a fascinating interview and they were discussing on the one hand, zero is too low. we all agree with that and goalposts can be moved. when you have 93 million, 194,000 people not in the labor force, which is a record today, versus the economy has weakened a bit so i have another way to look at it, ed. i'm going to ask you the question. if rates were where i think they should be at 1.5%, would the fed be easing now? let's frame it that way. >> well i think the answer to that is no. and there are a couple of reasons for it first of all, you wanted to distinguish the level ofm a change in rates and i think both of them provide different information and different signals to the market.

and so the reason that the fed is concerned about raising rates right now is they've been so low for such a long period of time that raising the rates would signal -- >> it's bad timing, they should have done it when things are cooking a little better. we've slowed down since mid '14. >> i'm with you, i think we've talked about this before. one of the problems with keeping rates low is you don't have any instruments to use in the future when you want to lower them. so the way you put it in terms of if rates are at 1.5%, i don't think, they would have a little bit of maneuverability there. but i don't think they would be using it. the primary reason, rick and i think you're probably on board with this as well, is that monetary policy is not particularly effective right now in stimulating the economy. we've seen that. the issue that you raised earlier about productivity growth is a case in point. we've had very low interest rates. we should have a strong investment climate given that and yet we haven't seen it and we haven't seen the kind of productivity growth. >> policy does figure into it

exactly. but in the wrong way, nothing against all my engineering financial friends, i love them all dearly. but when you have record buy-backs of stocks, when you have more paper shuffling than gidgets and widgets and manufacturing going on, what we've really done is the policy has created part of the economy that gross, that isn't adding anything to productivity. >> that's right. >> final comments, sir? >> if you want to add to productivity, you have to think about the long run. we know in the long run the things that work are low, inefficient taxes, a strong budgetary situation so a balanced budget, trade and no excessive regulation. that's not the direction we followed for the past few years. >> ed, i'm out of time. it sounds like pipe dreams, considering the political class. "squawk alley" gang, back to you. >> thanks, rick. up next, look, up in the sky, it's a flying unicorn. chinese drone maker dji getting a massive $800 billion

valuation. you're looking live from one of the company's drones at our one market headquarters right now. a top exec from dji and an investor are both going to join us in a moment. doug. you've been staring at that for awhile, huh? listen, td ameritrade has former floor traders to help walk you through that complex trade. so you'll be confident enough to do what you want. i'll pull up their number. blammo. let's get those guys on the horn.

oooo looks like it is time to upgrade your phone, douglass. for all the confidence you need. td ameritrade. you got this. my name is jamir dixon and i'm a locafor pg&e.rk fieldman i protect people. i protect our community. i protect our environment. when you call 811 i come out to your house and i come up to your dig site and i mark our gas lines and our electric lines to make sure you don't hit them when you're digging. most people in the community recognize the blue trucks as pg&e. my truck is something new... it's the 811 truck.

we get a lot of questions about "what is 8-1-1?" and it gives me a chance to engage customers and contractors in the field. 811 is at the heart of safety. call before you dig. we want everybody to know 811 is a free service. it's important for me to get it right because this is my community... this is my environment. any time somebody is digging, i treat it like it's my house or my family member's house. i want people to know what's underneath them when they're digging. i'm passionate about it because every time i go in the street i think about my own kids. my family is my life. they're the reason that i want to protect our community and our environment. and if me driving that truck means that somebody gets to go home safer, because now they know about 811, then i'll drive it every day of the week. together, we're building a better california. armed with $75 million, dji is now valued at about $8 billion. chinese drone company which makes the popular phantom quad

copter has risen to the top of the consumer drone market. expected to exceed $1 billion in sales this year. joining us is dji's general manage anywhere san francisco and director of aerial photography, eric chang and led dji's recent $75 million funding round. i got to dye say first to excel partners, go pro has a valuation of around $6.7 billion. i believe, and they are going into drones for all we know. hardware company is public. does this really deserve a valuation bigger than go pro's? >> yeah, so fundamentally we think it's a big bet. but at excel we get excited about investing behind companies that that are great teams of entrepreneurs and building huge new categories. go pro is a fair comp. just the sail way that go pro

has captured the consumers imagination. we get excited on the enterprise opportunity where we speak with firefighters, farmers, oil and gas technicians, who describe to us the way that dji uavs are fundamentally change the way they do their jobs. we think we're creating a category on par with ge and transforming the way we think about industrial tasks today. >> i'm wondering if you could give us a quick summary of the global landscape for drone development and usage. because dji is based in china and the u.s. has been worried that china, india and southeast asia more broadly would leapfrog us in the use of drones, which is why they're trying to ease some of the rules here. what are you seeing? >> we've seen incredible adoption of drones globally and even here in the u.s. even though we're mostly working

with hobbyists here. almost every industry we can imagine has people who are thinking of using drones because of the incredible efficiency gains and just being able to do things that you couldn't do before. >> eric, tell me about the technologies that you're working on now that you're going to use some of the money to develop. >> peek looking at the shot should understand how steady it is and what makes a drone remotely different from a helicopter. some technologies that allow it to bring awe shot like that and stay hovering in the air. what's next in the technology for these drones? >> yeah, so the technology really came from remote-controlled helicopters, what happened is all of the sensors that we have now in smartphones have moved to drones. and so that allows drones to basically do, basically they know where they are in space and sofy just let go of all the controls here, the drone will hover in position very stably

regardless of the environment there can be a lot of wind that makes them very safe to fly and able to fly also in confined spaces. so what's happening is we're seeing technology kind of massively converge from sensors and the flight controllers, imaging, cameras are tiny and high quality now, that's moving into the drones that are small enough to be backpackable and people are seeing they can buy one of these and on the very first day of ownership do something that no one has ever seen before. that's why there's so much excitement right now. >> small enough to fit in a backpack, eric, i believe the drone you're using, 2.8 pounds. and it seems harmless enough but if it gets in the way of something else that's in the air, it could be fairly dangerous. how do you see air traffic control around these drones as the use cases increase? more people have them and we get beyond just having hobbyists. >> well, we are building technology into our drones that

do things like limit altitude to suggested maximum flight altitudes and prevent them from flying around airports and other sensitive areas, it will be a combination of using technology to help make these things safer. and also education and regulation, those are both very, very important. we're going to need all three of those pieces. and one of the most important things about regulation is to understand that drones exist in all sorts of different categories, we think of them in the u.s. as being 55 pounds and under. we're flying a 3.3-pound drone right now. there are drones that weigh as little as half a pound. and of course drones that are much heavier. what we need to do is be careful and smart about how we regulate the use of drones. like these small ones. >> miles, i want to let you have the final word and ask you how much do you need the u.s. market to really open up, to commercial uses for drones. say within the next three years in order for this investment, three to five years for this

investment to pay off? >> we think it's an important market. what's impressed us about dji is they're a chinese company, we're supportive of that and they're global and focused. we hope at accel we can bring to bear u.s. sperk i and hope to unpack a number of industrial applications in the u.s. we think it's an important market and we've been encouraged by all the developments with the faa here in the last couple of weeks and months. >> well beautiful shots, beautiful day there in san francisco. eric chang from drone maker dji and miles clements from accel partners, thanks for joining us. when "squawk alley" comes back, take look at the market board, stocks rallying in tandem with bonds. we'll have more on that in just a moment. yourself? your family? our financial advisors are free to realize

a plan to fit your family's unique needs. we'll listen. we'll talk. we'll plan. baird. so if you get a trade idea about, say, organic food stocks, schwab can help. with a trading specialist just a tap away. what's on your mind, lisa? i'd like to talk about a trade idea. let's hear it. [ male announcer ] see how schwab can help light a way forward. so you can make your move, wherever you are. and start working on your next big idea. ♪ and start working on your next big idea. takeand . . . exhale. . . . . aflac! and a gentle wavelike motion... ahhh- ahhhhhh. liberate your spine... ahhh-ahhhhhh......aflac! and reach, toes blossoming... not that great at yoga. yeah, but when i slipped a disk he paid my claim in just one day. ahh! so he had your back?

yep. in just one day, we approve and pay. one day pay, only from aflac. [duck snoring]

bonds and stocks have been rallying throughout the morning on the back of the april jobs report. the s&p has been climbing throughout the show, now up by about 1.4%. it's just a couple points away. one point away from the all-time closing high of 2117. >> the dow has cracked 270

during the show, so you're welcome. >> after falling for, after rising for eight straight sessions, the yield on the ten-year has actually fallen for the second day in a row. i know a lot of people will be watching the action in stocks and bonds. so will our friend, scott wopner a few feet away and we'll send it over to scott and the "halftime show." ♪ ♪ >> welcome to the "halftime show." the markets are running following the jobs report. the dow and the s&p getting within one% of their all-time intraday highs. the dow sup 272 points. there's also a look at nike headquarters on the west coast, where president obama is, he's going 0 speak about trade, you know he's going to mention the jobs report as well. we're going to take you live to beaverton when mr. obama, when the president begins his remarks in just a bit. let's meet today's starting