>> with that, we'll send it over to you, carl. >> thanks so much. it is 8:00 a.m. linkedin headquarters. 11:00 a.m. on wall street and "squawk alley" is live. happy friday. welcome to "squawk alley." joe monsdale is joining us take. great to have you this morning. thanks for joining us. get to some tech news, but a quick market check. dow close to session lows down

172. of course the jobs number and the wage component of that jobs number is the big story of the day. some are arguing it's putting a march rate hike back on track. we'll have to see about that. nech linkedin now almost a 40% decline. profit and revenue actually beat estimates, but the forecast for 2016 was weak. and that is pressuring the stock this morning. jo jon, i'll turn to you first. there is no mercy this time away. >> there isn't on linked in. but i want to broaden it out first and say i see nine tech stocks that i track. sizable stocks down 9% or more this morning including workday sales force, palo alto networks, net sweep, workday, splunk, linkedin, tableau. so this isn't just a linkedin story. it seems like perhaps an speaker prize spending story. we heard a little bit about this

from your more traditional players from intel. and now there seems to be even among these momentum names some of that same enterprise spending story between linkedin and tableau, hearing about existing customers spending less. still picking up new customers, but those existing customers aren't spending as much ander that's being conservative heading into this year because they have the currency headwinds. so this is an outsized move down it seems to me from the numbers that they reported. so the question is, is everybody else going to catch up to this negativity, is it anxious overall valuation reset or is it overdone on linkedin. >> when you look at the way in which capex is being reigned in, is it the canary? >> i think we're seeing a broader trend and around the unicorns, as well. you have a show me market. a lot of investors have been willing to suspend disbelief for

a while. it's a great team. at this point people are asking are you actually going to keep growing. and they're punishing the unicorns and public companies in the same way. >> linkedin trading at $116 a share, touched a higher level on it's very first day of trading. now almost on the hope rather than the promise of growth. but it surprised investors because we saw block bus it tbu earnings. was it too overvalued? >> i think they're getting puni punished. there is a smart woman there and now some great actions make a lot of sense, but the market is not trusting them anymore. and this is a company that makes over $3.5 billion a year. it's growing really fast. but i think the market will be punishing people for not growing quickly right now. >> although we had the

discussion when linda happens about whether organic growth would start to be less of a story. is that coming to pass. >> i think it is, but certain companies including linkedin and adobe have prepared for this in the sense that they know that they have a reliable base of users. and they're looking for ways how can we get those users to participate in services that they will want to spend money on. so we know the career path of your typical investment adviser. what kind of training might they need to reach that next level in their career. can we provide that through linda and get them to spend. that's part of their strategy. we'll have to wait a few quarters to see if it plays out as they really integrate linda. but this isn't some unforeseen thing that is happening to them. >> of course there are people today trying to draw comparison to the jobs number. fewer jobs being created, does linkedin then not do as well. how much are they leveraged to the growth in the overall economy. >> that's a great point. definitely a sharp term macro

point. but they open a really powerful network. and i think they have a good five to ten reyear plan. it's tough to be in the public market. >> next up, a couple big names speaking out on ipos. fred wilson criticized travis saying it should be a publicly traded company and mark cuban talked about what he calls the decimation of the ipo market. he said the momentum of the stay private movement is devastating our economy and says the amount of destruction in the ipo and public markets can only be described as horrific. let's take wilson first. because his argument is you take the money when you can get it. >> yes. >> is that what travis should be doing? >> i wouldn't mind for some to be liquid, but would i want to

be ceo as public or private? i'd much rather be private. so you really can't blame them. >> is it not creating huge market dislocations on the private side? >> i think the biggest dislocations are where you have a lot of early investors and employees that need to be treated fairly and a lot of people are starting to get pretty frustrated about that. so i think if you'll stay private, you'll have to figure out how to treat people better. >> one of wilson's points is he wants to get paid. he's an investor. but the argument for companies not going public is that if there is some sort of correction, then you spare the retail investor, you spare the every day investor from that sort of correction. which argument is stronger? >> i actually think that there is a lot of ways we can supplement the private markets. i think it will be up to we really need to have a moral ethical system to how we do that because right now management gets an advantage over the early invest are to yous. staying private is still a smart

thing to do. >> when you see a plunge in saleses for and workday and others, a lot of these are compa companies that went public maybe five years or more ago but have a large influence. what changes? >> private valuations peak sometime around august or september. so i think this is the case where the markets echo what has already been happening in the valley. you're seeing a lot of valuation in this pressure and linkedin is being treated like a lot of other unicorns. people are starting to ask tougher questions. >> but it's been public for five years. kind of late to call it a unicorn. why adoes linkedin affect unicorns? >> you have a network affect. a lot of linkedin's value is going to be achieved over the next five to ten years.

yes, it's making a few billion dollars revenue and it's a public company, but it has these really big long term plans, as well. >> when you think about the big unicorns that are still lingering in the shadows, uber, airbnb, drop box, is there a window that opens later this year for them? >> i don't think any of them will go relatively soon. i think they want to stay private for a few years. >> we'll have to wait and see about that. window has definitely gotten smaller. joe, thanks for coming in. meanwhile we're still near the lows of the session on the markets. dow down 195. s&p down 27. nasdaq has been down the worst of the session down about 2.75%. pretty much there throughout the morning of course comes on the back of a much weaker than expected jobs report. china will be closed next week, so it will be interesting to see exactly what data moves the markets. but so far today it's taken the market a while to digest those

numbers. when we come back, another name jumpi ship from yahoo! as the company implements the cost cutting plan. and plus from wall street to drug companies, last night's democratic debate featured a lot of attacks on big business. we'll break it down with a ceo not afraid to share his opinion. take a look at linkedin. more "squawk alley" in a moment. ♪ there's a lot of places you never want to see "$7.95." [ beep ] but you'll be glad to see it here. fidelity -- where smarter investors will always be. if only the signs were as obvious when you trade. fidelity's active trader pro can help you find smarter entry and exit points

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the nasdaq taking it on the chin. down 2.5%. considerably worse than the dow which is down just over 1%. some of the high growth tech stocks are the ones that i suspect have a lot to do with that. we were just talking about some of those earlier including the likes of work day, just a lot of stocks that are down more than 10%. we'll dig into that. but for now, yahoo!'s chances of producing a mobile hit not looking great today after reports that one of the company's mobile entrepreneurs brought in by marissa mayer is leaving. take a listen. >> my focus is on the strategic plan that we laid out yesterday.

how do we make yahoo! the very best version of itself that we can. and that's being focused on discovery, being the digital information guide that we've always been. and really thinking through how can we inform, connect and entertain our users. and so as much of the same focus as we've had in the past, but even more concentrated into particular areas. >> now more concentrated. and with us is cara swisher. all over this yahoo! story for a long time. information guide, this is different from daily hack bits. we're getting different language here from yahoo!. we're still getting defections. how does it look to you? >> not good. i mean, i think this week was -- i consider it a disaster. i called it a tale of two press releases. one the board was saying which was we're for sale and the second where the ceo was going over cable networks saying i'm going to turn it around.

so confusing messages. people inside yahoo! are confused. it's not clear how much due diligence she will work on. and so a ceo's i don't think when t job when the company is for sale or says they will explore options is to cooperate with this.when the company is for sa says they will explore options is to cooperate with this. so wall street is confused. and given the numbers that they delivered, it's questionable if the turnaround is possible since it was already a turnaround to start with. or if she's the right executive do it because she has no turnaround experience. >> she made it very clear when she came on cnbc that it was the independent directors leading sales process. you have jpmorgan, gold man sax and now multiple pr firms. are there too many cooks in the kitchen? >> well, i don't know what she's talking about because every single ceo i talked to has said that they thought it was perplexing. because it is the ceo that deals

with due diligence, that leads the process. and i know the independent directors have involved, but it's not their full-time job. so the ceo has to be incredibly engaged. it's not accurate to her to say that. >> so what does that tell you about the likelihood of any deal, a good deal for investors getting done in yahoo! within the next say year? >> i don't know. i mean, i think they will try to jack the price to $10 billion or some number that would be normal for them to try to dond at bankers to try to do. i think a lot of people are just looking at it and finding it super contusing. confusing. it doesn't mean the asset isn't value. like a telco, verizon. definitely looking at it. they have gotten some engagement going on. but i've met with a lot of them and i think confusion would be one thing. the second part is whether jeff

smith there star board value will initiate a proxy fight. i think he still is. i think there is a question who is in charge here is a really good one. >> lots of drama still to come for sure. let's move on to linkedin. on track for it worst trading day in history following weaker than expected guidance for the current quarter and full year due in part to slower ad growth and slow are follow-on growth of selling products connected to the core recruiting product. but look at linkedin down 40%. tableau down 45%. splunk down 23%. workday down 15% this morning. sales force down 11%. what is going on in enterprise software among this cloud cohort largely, cloud social, call it what you will, but was supposed to be a big growth hope. do you think investors are losing confidence, sdoes it reflect something you see happening on the ground there? >> i think it's a worry about

growth. i think they did very well. linkedin is the best behaved internet companies out there. underpromise, overdeliver. this was a good quarter for them. i think just going forward the numbers are substantively lower by hundreds of millions of dollars than what they had promised. and so i think while it spooks wall street, you cannot do that right now. people are very worried about growth. and this is one of the leading enterprise companies. and so they're worried about if they saturated, if the growth is there, if it will continue this high growth -- i think growth is really what it is. and then i think it was confusing some of their messages about hunters and farmeder sfar. usually linkedin is more tight on its messaging going forward. again, they have nothing to be embarrassed about of their performance so far. but i think people are just spooked. and this is a company they have come to rely on and they were

spooked by this. >> investors liked linkedin because of the subscription revenue stream. and when ad spending was soft, they could rely on that part of linkedin's tool kit to come through. but the fact that they're talking about shifting to more of an ad growth model, do you think that that in and of itself is worrisome? >> no, i think they have to find all kinds of revenue. i mean at some point you can't grow the numbers they have been growing. and the question is where does the market go. i think one of the things that linkedin had going for it, it was a very clean story for a lot of wall street. and they have to improve all their different revenue streams. and i think jeff wiener, the ceo, has been doing that. he's been moving carefully into different areas.einer, the ceo, has been doing that. he's been moving carefully into different areas. but i think growth, growth, growth is the issue. if you're saying we're not going

to grow as much, this is exactly what will happen. so not a big surprise about the stock. >> a stock like sales force trading where it was almost exactly two years ago that says something about what is happening in high valuation tech. kara swisher, thanks so much for joining us. up next, they know football. but how do this year's super bowl teams stack up when it comes to business? our jane wells will quiz a ton of players on the markets investing and more. and we're still watching the markets. oil sun, but mis up, but market. nasdaq down 2 aboutment 5%. the future belongs to the fast.

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information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim. td ameritrade. how do this year's super bowl i'ms to when it comes to business knowledge? jane wells is live in santa clara with a segment that is a

highlight every year. jane, how did they do? >> reporter: okay. get ready for this. we all know football is all about money. look at the value of these two teams. combined worth about 3 abo$3.5 billion. but what do we know? they knew more than i expected. and i was particularly blown away by these two guys. the punter and long snapper of the carolina panthers. >> are the markets up or down this year? >> down. big time down. about 10%. 8% to 10%. >> how much is a barrel of oil? >> right around $30. maybe a little bit under right now. >> what's more valuable at the moment, google or apple? >> i think google just overtook apple. >> i think today apple went above google. >> it's close. >> alphabet p. >> you frickin' though more than

i do. >> they will lower rates again? >> yes. >> i disagree. i think the economy is healthy enough. keep raising them. >> if you had a million dollars to put in one stock, what would it be? >> johnson & johnson. >> why? >> because it's a blue chip, it's been stale. raised dividends for 53 consecutive years. everyone needs health care products. i would bet a lot of money on johnson and johnson in the long term. >> i was going to say johnson & johnson. but if i can't say that, i'd say coke. >> caller: coke lal for thca-co same reasons. we try to think 30 years down the road. technology companies, you never know what that will look like, but everyone needs health care and lig quids. >> finally, nobody has gotten this question right today. who is janet yelp. >> she's the fed director. >> yeah. nailed it. >> nortman was an accounting

major at wisconsin. and they were so excited, they were quote we were just walking "squawk alley." equal time. next hour, we talk to broncos tight end vernon davis. back to you. >> well, that explains it. i was about to say get toes guys to post nine. we could use the commentary. >> no kiddi. they would love it. >> thank you, jane. up next, attack on big business from wall street to drug companies. front and center last night, we'll talk about it with one of the most outspoken ceos around. jonathan bush.

i'm morgan brennan. dramatic video showing the collapse of a crane in new york city that killed one pedestrian and seriously injured two others. the downed crane fell and crushed several cars. mayor bill de blasio says all similar cranes in the city have been ordered to be put in secure position. aem cpple is accepting bangp iphones for people who want to trade in. south korea holding a meeting with ambassadors amid the threat of a north korean satellite launch. and phone francis and head

of the russian orthodox church will meet in cuba next week. vatican saying the two will hold several hours of private talks. and that is the c thnbc news update. you'europe will be in the r for the week. >> yeah, this is a mishmash of a session. you can see the center of the eurozone certainly in negative territory. down about for the year down about 10% year to date. the italian financials which have been doing quite well partly in the -- from a low base were beaten down, partly on the expect takes that we would have a cabinet meeting on discuss that next tuesday. they have fallen into negative territory. some of the span ish banks are

doing okay. vw will delay its annual as a results as a result of the ongoing scandal there. and within resource stocks, the short covering continue with that though steel industry of course announced a $3 billion rights issue as they unveil an $8 billion loss more or less for last year. overall, the story of the week for europe is very much this short covering that came through on basic resources that has lifted those stocks again from a low base. but the continuing decline that you see within the banking sector and an awful lot of questions. a lot of the banking bonds and insurance on the banki ing bond have also had a terrible week. and that could be the theme next week. >> meanwhile shares of athena health are down nearly 9% after

earnings topped sdiestimates despite a miss on the revenue side. joining us, jonathan bush. great the to have you. >> good to be here. >> so bookingings grew 30%. slightly below what the street was expecting. and you described it going forward as as per operational. why is that? >> well, i don't know. i'm couldn't of okay withoperat. why is that? >> well, i don't know. i'm couldn't of okay with 30% organic growth in this economy or any other. but whatever. we wanted to catch up from 14 where we had a little bit less than that. we missed a deal that flipped over. hey, i'm fine with a b-plus. i never got more than that in school. the fact is that the nation needs a health care enter threat. we' enter threat. we're the only one. all of our services generate revenue right away. and so we feel that is worth aspiring to continue to grow 30%. >> the growth going forward

depends on your ability to convince hospitals on the inpatient side to transition from their established health records over to what you're offering on the digital side. how much demand is there and how much does that depend on this move toward interoperability? >> it's a huge deal. every hospital in america except for the 50 on athena net are still on enterprise software that was out there on the market with flock of seagulls. so the opportunity is bright for us, but we're moving cautiously. as you know, most of athena net is ambulatory. and then we'll move into the hospital and an crocross nursin homes. we signed our first academic medical center as a development partner, university of toledo. they're helping us get deeper

into the bigger hospital, but we want to move carefully so that we don't disappoint anybody and ruin our great reputation of delivering results. >> jonathan, what are you seeing in hospitals willingness to spend? because recentlyoff the past couple of weeks, overall enterprise spending, it seems like there is a cautiousness in spending on new technology. are you seeing that trend reflected, does that reflect why you're moving forward somewhat cautiously? >> well, the thing that is great for us is that a these that doesn't require any capital expenditure. absolutely right, those hospital i.t. departments and board of directors are panicked about laying out more capital in this environment. medical care is reducing rates. things are getting tight. so nobody wants to layout tens of millions of dollars up front in hopes of some sort of sunshine future. athena says, hey, don't give us any cash, we'll take over work for you, we'll outsource stuff

that is noncore to clinical medicine and we'll return cash to you. so it's a great opportunity for us. my caution is around making sure nobody has an interruption in their service that we don't bite off more than we can chew in terms of delivering on the operations side. but you're right, what you're seeing in the enterprise space is absolutely happening. >> jonathan, it's clear that total addressable market is big, but when looking at your valuation for your stock, 342 times australiai intrailing ear. what do you think when you look at the shares today in response for the quarter some glt the reason i keep all my net worth in athena health is because i can't pick stocks for the life of me. all i know, right now we're the only health care internet and i think this internet thing will be big. so we've got almost the entire market to go and get. we're still growing 20% to 30%

organically. and there are recurring revenues our fees times what people are spending. so it's morning in america here in watertown, mass. >> we know that you don't shy away from giving us your pin why notes on various matters. of course headlines from the political space have been dominating in health care that week. we want to bring in eamon javers for a recap on some of those headlines last night, the first one-on-one debate between bernie sanders and hillary clinton on msnbc. some of the biggest moments as we mentioned centered around a tax on wall street, big business and specifically health care. what were the highlights? >> yeah, that's right. and sometimes we get so caught up in the horse race here of these campaigns, the end/she said, and what you lose track of a little bit is that what we're having in this country right now is a debate on the future of capitalism itself. both in the democratic and republican parties. that was really on evidence last night in the democratic primary debate.

take a look at some of sector takes cakas that came in for questions, suggestions to reform. this is a huge chunk of the u.s. economy that the democrats were talking about. oil and gas extraction sector, 183,000 jobs, top ten wall street banks, 51,000 jobs. bio phrma sector, 108,000 jobs. companies using inversions, 100,000 jobs. that is a lot of people who will be affected by the ideas debated last night. and take a look at it as a percentage of the gdp, health care 7.1%, oil and gas, 1.7&, finance 7%, education 1.1%. a total of 16.9 of u.s. gdb coming in for comment and criticism from the democrats. none more so than wall street. take a listen to the red hot rhetoric that we had from both candidates last night on wall street. >> not one of the executives on

wall street has been charged with anything after paying in this case of gold map sman sach million. kid gets caught with marijuana, that kid has a police record. wall street executive destroys the economy, $5 billion settlement, no criminal record. >> part of the reason the wall street guys are trying so hard to stop me, the hedge fund guys, shadow banking guys, is because i've got their number on all of that. we can't just fight the last war. we have to be prepared for stop these guys if they ever try to use their economic power once again to hurt the economy and to hurt so many americans. >> so fascinating to see that debate particularly from hillary clinton who has come under fire from bernie sanders for accepting wall street campaign cash and also giving paid speeches to wall street banks. that was one thing that hillary clinton said last night she really resented. she called it an artful smear and said bernie sanders ought to

stop implying that she's been bought and paid for by wall street, but wall street not very popular in the democratic primary right now. >> eamon javers, thanks. meanwhile jonathan bush, your reaction to last night's debate and anything you heard that you find either interesting or scary. >> well, you got a 2 by 2 matrix. you got the outsider burn it down guy and the insider tactical guy and you've got the government needs to play a bigger role in our society and government needs to play area smaller role and both parties are making this case on these 2 by 2 matrix. obviously bernie is the burn it down guy and hillary is the insider tactical expert and both saying the government needs to be more involved. ironically, wall street is the place that it seems to me and health care even more are so has suffered mightily from this encroachment of government more and more and more bureaucratic, less and less entrepreneurship, less and less range of motion.

less and range consumer empowerment and connection to the product. so you know where i stand on it. but i get it, right? people are frustrated and they're like either get in there further and make it work better as a socialist country or get the -- out and let us do our thing. we'll all get together as a country and decide which way we want to go. and i just love this stuff. saturdays will do the same thing on saturday night. i'll be rooting to jeb because i love a good angry insider. >> your grandmother former first lady barbara bush has said there should be no more bushes in the white house. to you your cousin jeb is running and he's pulling about 10% in new hampshire. do you think he can pull it out there?and he's pulling about 10 new hampshire. do you think he can pull it out there? >> you can never have too much bush in the white house. obviously the thing that plays against jeb is the name bush in a world where the outsiders are ripped. they're pissed off and so the donalds and cruzs who have these

burn it down rhetoric and sort of irrationally refusing to answer, that anger reminds me of reagan in the early '80s. i'm paying for this microphone and all of new hampshire is yeah? >> that anger is real. people get told what to do a lot by people outside of their lives. and it rips them up. and i think seeing a repeated name -- now if i had to choose another bush or clinton, you know -- but i'm sympathetic to that even though i know jeb and i think he's fantastic. >> i have to believe that a lot of that anger will continue to be directed toward the affordable care act which the republicans have continued to talk about potentially repealing. and yet that is a big source of growth to your country. senator ted cruz called the affordable care act the biggest job killer in this country. do you believe that? >> i don't get how it's a job killer or not. i think it's a job killer personally because when you turn it anything if to a one payor

system, you lose diversity in the pond. a lot of what we're doing at athena is trying to attract new companies into what has been an innovation food desert for a very long time. giving capital to new start ups, trying to get new products going. and when the b-- we're the only company moving this back off to the cloud with government, without government, i'm not worried about it within way or the other. we need a health care internet and we'll bloody get one. >> for the democrats, biggest issues have been what they describe as monday on that police tick behavior by the insurance companies that continue merger, but they also have been targeting drug pricing.companies that continue but they also have been targeting drug pricing. we saw that with martin shkreli on capitol hill. do you think that the phrma companies are predators or capitalists? where do you come down?

>> obviously there are objectionable people everywhere in the world. but again when you politicize entrepreneurship, suddenly a bad attitude becomes an act against the state. it has a very soviet feel the way they're criminalizing that guy. he's not the most charming twice i've ever seen, but anyway, i'd die for his right to be a jerk. and i don't like the fact that now his jerkiness is becoming a matter of public policy. same thing true on the payor side. we made it illegal for health insurers to product manage, to change what they offer. you can't get health insurance that doesn't include desperate acts of surgery on stage four cancer even though it makes you die faster and more miserably. they're not allowed to offer a cheaper product that doesn't have that and a million other examples like it. so what do you do if you can'kyy

verse guy? you merge and get administrative savings. >> are you legitimizing their pricing structure? >> i would know your voice in my sleep, carl. and i absolutely -- listen, here's how it works. and again, it would be easier if there were many buyers and not just one. but when it buildings a plan date from t mandate from the people, your negotiation power crops down. he'd be forced to behavior a little better, but bisince it's illegal for nip anyone to say n it allows him to be a jerk. can you cut enough hospital days out of the health care benefit for make it cheaper. if you can, you can charge whatever you want under that window until the next invention comes along and undercuts you.

that's a market. >> finally, jonathan -- >> i can't believe we're explaining this on squawk like it's a new idea. >> and then you make the point finally that his behavior has become the story at the skens ever the issue. if it were you and him in a room together, what would you tell him? >> i'd fight and die for your right to be a douche, but usual bei you're being a douche. >> great to have you. maybe next time you'll tell us how you really feel. when we come back, stocks falling after the u.s. added that 151,000 jobs in the month of january. rick santelli will talk to the chief of all things labor ed lazear in a minute.

coming up on the halftime show. with the plunge in several of the nasdaq momentum names means for investors. plus today's jobs report, does it put a march rate hike back on the table. we debate. and we size up super bowl 50 with joe theismann and dan patrick. we'll see you in about ten minutes. now let's get to the cme group and the is an telsantelli. >> i'd like to welcome ed lazear back. thanks for taking the time today. >> great to be with you. >> unemployment days certainly have changed.

there was a time when you just look at the headline numbers and move on. not so anymore. so many different ways to go. why don't you tell me your impressions of this report pay plaur l particularly close attention on the headline weakness, difference between that and household survey and maybe most important, some of those numbers on wages and revisions. what was your impression? >> well, i actually think this is quite a strong report. and i'll tell you why. the headline number is a bit low as we've seen, 151,000 or so is lower than it has been. but the past three months have been at 231, so that is a decent number. as you said earlier, the wage growth is actually quite a significant number. now, obviously one month doesn't tell you what the future is going to bring. but it is a significant number. it is something that i would watch carefully. to me, that is probably the second most important number. the most important number is actually hours of work.

and i always watch that very carefully. and the hours went up by a tenth of a percent. and a tenth of a percent -- a tenth of an hour is the equivalent of about 350,000 jobs. so that shows you that there was a considerable amount of strength in that last jobs report and i think that's probably the biggest deal. you mentioned household versus the employment establishment based surveys. those tend to be very close in the long run, but month to month can vary a whole lot. we saw pretty significant growth in the household survey this month. but again, that one is a witness noi bit noisier. so people pay more attention. in the long way, i think they all work out.noisier. so people pay more attention. in the long way, i think they all work out. so the picture is pretty consistent. >> here is where the big quandary is. i see traders just digging into

the nonseasonally adjusted. remember the argument of gdp and fourth quarter, first quarter and how there is so much seasonality, they wanted to dar the most part has been strong. but it suffers when you compare season and non-seasonally adjusted. i will give you an example to comment on. almost 3 million jobs were lost in a non-seasonally adjusted household survey. 200,000 of those were in services. can you comment on that? >> right. yeah, absolutely. you know, seasonal adjustment is a tricky business because it's basically a statistical approach that takes out the average trend. we know, for example, hiring in november and december during the holiday season is going to be higher than average. that doesn't tell you just because hiring goes up, that doesn't tell you the economy is growing. it tells you you have seasonality. the problem with that is that seasons are not the same. so some seasons may be more

severe. some seasons may be less severe. all the seasonal adjust innocme takes s out the average. it will under adjust or over adjust. that's the problem. >> we're out of time. but i have a big surprise for viewers. we're going to take this and we're going to take the gloves off and go to dotcom. viewers, you want to follow us at some point today. thank you for taking the time. >> thanks so much. coming up, more on this morning's jobs report and how it's impacting markets and the consensus for economic growth. squawk alley will be back in two. the future belongs to the fast.

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the prose will address today's jobs reporting at 12:30 p.m. eastern time. economists are revising their growth estimates after the jobs report and trade data came in. steve leaseman has more. >> we put together the tracking forecasts on the street. a nice upgrade here, three-tenths from our last report. tracking 2%, which i bring to your attention because it used to have a one handle on it. it's nothing to write home about but it's better to have a two handle than a one handle. still not a great bounceback from the q4 which is tracking a half a percentage point. bank of tokyo, he's at 2.5%. the atlanta fed, one which has been very weak over time, a big

upgrade this week. more than a percentage point, up 2.2%. action economics at 1.8%. morgan stanley the most pessimistic at 1.1%. two is better than one but two ain't that great. back to you. >> thank you. big sell-off on the nasdaq today being punished especially hard. we will look at the biggest lag erts when we come back. there's a lot of places you never want to see "$7.95." [ beep ] but you'll be glad to see it here. fidelity -- where smarter investors will always be. if only the signs were as obvious when you trade. fidelity's active trader pro can help you find smarter entry and exit points and can help protect your potential profits. fidelity -- where smarter investors will always be.

breaking news. the cdc issuing an update on the zika virus. it says 51 cases now have been identified in the continental u.s. all but one are travel related. we can expect, quote, many more travel-related zika cases. of course, a state of emergency in the state of florida. meantime, looking at winners, looking for winners on the nasdaq. maybe ten out of 100 are in the green. >> doesn't look good, particularly in tech. take a look at this chart of the nasdaq over 12 months. we're down 2.5% today. some of the biggest losers today in tech include linkedin,

splunk, work day down. what do they have in common? they sell to businesses. they sell to tech. they have been high growth companies and down the line, net sweep down, sales force down, palo alto networks down. a little bit above where it was 12 months ago, one and a third percent. >> it's not just enterprise spending. it's media, too. news corps reported ening eed e today. they are down 9%. they did see declining ad revenue, the stronger dollar, because they have international assets, hurt that company. >> that's been one to watch. the president is going to be making a statement on today's jobs number at 12:30 at about half an hour. we will keep our eye on that as we work our way into the

afternoon. dow looked like it might have had a chance for going positive for the week this morning when it was down 50 points for the week. that's tougher now with it down 169. have a good weekend. let's get back to headquarters. thanks so much. let's meet the standing lineup. jim and stephanie, josh, sirat and on set with us is mary ann, the head of portfolio management. marching toward a rate hike. does that put the fed in play next month? countdown to super bowl 50, we size up the game with dan patrick and joe theismann. the president making a statement on the economy and today's jobs report. we go live to the white house for