good morning. working for a living. the global markets counting down to the big u.s. jobs report. a picture is worth a thousand words or $16 billion. snapchat raises maore money but keeps the same valuation it had a year ago. and a republican slug fest until the end. highlights of last night's gop presidential debate, including donald trump's rivals vowing their support. it's friday, march 4th, 2016. "worldwide exchange" begins right now.

i've always loathed the necessity of sleep. markets never sleep and nor does cnbc. i love that woman more than central bankers love inflation. >> did you see the move in the japanese yen? >> but my gosh, she does not shut up about foreign exchange. >> behind every powerful man is a woman with more twitter followers. >> it's 5:00 a.m., and that means it's time for my daily dose of business news with "worldwide exchange." good morning and welcome to "worldwide exchange" on cnbc. i'm sara eisen. >> and i'm wilfred frost. >> that was fun. >> a huge morning. it was a lot of fun. >> nice job putting that together, guys. >> we've still got to explain

why we're doing that. it's jobs friday, yes. it's also the day "house of cards" fans have been waiting for. the new season officially out on netflix. we're going to talk about the future of media and streaming a bit later this hour. reso recode senior editor will join us. we'll talk about how the media industry is changing. >> and how good your impression of kevin spacey is. >> nothing was better than that wig. i'll just cut your hair later. >> no, i will never put that wig on again. but it did help me get into my inner claire. first, the big market story of the morning. the countdown to the february jobs report due 8:30 a.m. eastern time. polled forecasters say the economy likely added 200,000 jobs last month. the unemployment rate expected to hold steady, below 5%, 4.9%. u.s. equity futures right now ahead of that report coming off

of three straight days of gains are sort of little changed ahead of the jobs report. dow futures down about 12 points. s&p futures down 1.8. nasdaq down four points. after what has been a pretty nice rally. let's show you the yield on the ten-year treasury note yield. better improved sentiment across wall street. 1.82. we'll watch what happens with treasuries after that report, of course. still, way off the lows of the 1.70s we were seeing. >> china's central bank setting the yuan midpoint higher, setting the currency near a three-week high. suspected intervention by the pboc also lent support. this all comes as china's communist party leaders gather for the national people's congress. there's been speculation policymakers will announce further infrastructure projects. the chinese government wants to

double gdp growth in the next five years. here's how stocks close in asia. shanghai comp up half a percent. hang seng up 1.2. it's been a decent week in asian trade as well since that rrr cut earlier in the week. managing to hold on to slight gains every day. of course, beware, these types of gains can be wiped out in one day's volatility. nonetheless, a decent week. >> check out the yen. we've had comments of bank of japan governor. he said negative interest rate policy is not aimed at influencing the 4x market and adds rising yen is likely due to risk aversion. there's the move we've seen. in the month of february, almost a 7% move. really going against their hopes when they've cut negative interest rates to weaken the yen. it's bounced back quickly. >> which is why he's been on the wire every single night. >> remember, europe closed lower yesterday, snapping five sessions of zbans.

looks like they're back gaining today. the german dax higher. fractional gains compared to what we've been seeing. europe has also been a strong rebounder along with the u.s., along with the asian markets since mid-february. the ftse 100, france, all higher. italy and spain lower. >> all of those markets now, over a 30-day view, are in pretty decent territory. germany up 4%. highlighting how decent that rebound has been. >> but still in a bear market. these are still markets that have been brutally hit. >> oh, january still outweighs the moves for year to date. >> let's show you the sentiment read. the euro getting a lift today. we'll see what happens after the jobs report. good report, strategists say, could be good for the u.s. dollar. raising hopes that the fed will move. dollar-yen pretty much unchanged. that's been a key barometer as well. the pound going back under pressure, though it has remained above that 1.40 level. >> a quick look at commodities.

oil prices just losing a tad of ground this morning. 34.5 for wti. of course, it's been a strong rebound for oil, like it has been for equities over the last few weeks. gold as well. interestingly, despite risk-on moves this week, it's continued its strong start to the year in the last few trading sessions. it's up another 1.2% today. that's one of the interesting developments this week. we've generally had risk-on sentiment. that's applied to bond markets where we've seen yields tick higher. gold has managed to continue its own march high er. what's driving it this week? >> there's still concern that first of all negative interest rates are an aphrodisiac for gold. there's also an element of trust. that central banks are a little manufacture impotent when it comes to the policy stimulus in an era where we're seeing decline in growth around the

world. it comes down to trust. some say it's the political noise perhaps. the key question is what's going to happen with jobs and the u.s. economy. the only two sectors i would point out would be transports in the u.s., which had been beaten down so much and are now outperforming in the russell 2000. small cap stocks. both are economically sensitive. both have made an outsized move higher in the last few sessions, signaling this could really be about outperformance of the u.s. economy. >> it could indeed. it's going to be a big week for central banks next week. so gold again will remain in focus because of that. >> absolutely. it is jobs day. wall street will be paying close taeng to the february employment numbers. there's so much good nuggets in these reports. landon dowdy joins us with more on what we should be looking for. >> happy friday. my favorite friday of the month. three things to watch. first, the numbers. the expectation is that 200,000 jobs were added last month. an increase below 150,000 would

raise concerns that market turmoil is impacting jobs. unemployment is forecast to hold at 4.9%. second, the sectors. job growth is expected to remain strong across most sectors, especially services and construction. however, energy and manufacturing remain under pressure. the third thing to watch, wages. average hourly wages are forecast to rise 0.2%, following a nice boost in january. keep in mind, wages are an indicator of inflation. if they rise, that could give the fed incentive to hike later this year. guys, back over to you. >> landon, thank you very much for that. we'll all be watching that jobs print later today. new data out this morning, where investors are putting their money to work. lipper says nearly $5 billion went to be riskier u.s. based high-yield junk bonds in the latest week, marking the group's largest inflows on record. >> snapchat has reportedly raised $175 million in fresh funding from fidelity and other

investors. the met the so-called flat round suggesting snapchat's valuation may have grown too quickly. still, it's the sixth most highly valued venture backed company in the world. >> just a plateau. but still, that's a marked change from the pace of increase of the valuation previously. >> right. and better news even that it didn't go down, which some were expecting. former barclays bob bob diamond is seeking to buy the bank's africa unit. diamond could face competition from france and china. of course, we learned there's not an immediate buyer on the cards, but they're looking to sell that business. federal prosecutors have moved to dismiss the indictment of chesapeake energy founder aubrey mcclendon as expected

following his death earlier this week. mcclendon died in a fiery one-car crash the day after being indicted. the case against the former chesapeake ceo is expected to end. a law enforcement source telling cnbc the justice department's broader investigation into possible collusion in the oil and gas industry will be ongoing. some stocks for you to watch today. it's official. samsonite has agreed to purchase tumi holdings for $1.8 billion. they say it will help them expand into the high-end luggage market. >> look at that spike yesterday. >> exactly. also in deal news, amc entertainment has agreed to buy carmike cinemas. it would make amc, which is chinese owned, the largest theater operator in the u.s. it has bounced significantly. >> the apple chip supplier broadcom will slash nearly 2,000 jobs globally. the firm also posting strong earnings in its final quarter

before it merges. and s&p 500 shuffle to tell you about. udr will be replacing green mountain in the index as of the close of trading today. smith & wesson revenue rising by more than 60%, and the stock getting a little over 4% boost on that. gap saw its core sales sliding 2% in the month of february. the chain was hurt by another double-digit drop at its banana republic chain. gap is trying to engineer a turnaround. the core brand gap and old navy both came in flat on comps, but it was banana republic that's weighing them down. >> not been doing well, gap itself. up next, we'll get ready for today's big jobs report. we've got jason schenker from prestige economics. stay tuned. you're watching "worldwide exchange" on cnbc. est young company around but if we want to keep the soda pop flowing we need fresh ideas! got it. we slow, we die. what about cashing out? no! i'm trying to build something here.

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i suppose first up, we have to decide if it's going to be hit or miss. >> that's the question. i was just wondering about the correlations there. having a job, buying an energy drink. monster beverage. i don't know. it's funny, the names we come up with. let's talk about the jobs report. joining us in studio, jason schenker. you're not talking about the last recession, jason. >> i'm not. >> you're talking about the coming recession. >> that's right. >> which is coming? >> by the end of this year or in 2017. >> given that we sort of papered over the cracks ahead of the last one s it going to be much worse? >> we see something more mild. in the last recession, it was an overextension of credit to the consumer. this time we see some of it being the overextension of credit in certain spaces, oil and gas being one of those.

also, the extremely strong dollar we've had. while other currencies are racing to the bottom, the dollar continues to rise. the fed is still talking about rate hikes. then of course that's also spilled over into manufacturing, which is quite weak. five months of contraction now in the ism. those things are all disconcerting and highlight a much bigger probability. >> but jason, the data has looked better. at least over the last week or two. there are some signs that manufacturing may be bottoming and that oil may be stabilizing. >> well, i think a lot of that is going to depend on two things. i think one is how strong does the dollar remain because we had a slightly weaker dollar in february. that may have been one of the reasons that the ism got a pop. the second thing is there's only been three times, other than in november, december, and january, where we've had three consecutive months with the ism below 48.5. that was the three months immediately before the '01 recession. in the '01 recession an in 2008

in the middle of the great recession. we had that also in november, december, and january. so you've got a very high probability of that happening. it's been almost 20 years since we've had that happen. >> how much of this economic negativity do you put down to the fact that the fed tightened and certainly stopped easing a while ago? could they still switch it around and stop us from going into this recession? >> you know, i think that if core cpi wasn't at 2.2%, we'd be looking at them talking about more quantitative easing. the problem is they have a dual mandate. we have essentially full employment at 4.9%. we could talk about what the labor force participation rate means, but essentially we're there. and you have core cpi at 2.2%, inflation. if you have core inflation above two and the fed has really boxed itself into that 2% -- i mean, bernanke had a 2% to 3% range. greenspan didn't have a target range. now we have two. that's a really small window to work in. we're above the number. that means the fed could still raise rates.

>> jobs today. where are you? >> our number is 170,000 jobs. that's what we expect. >> a little below consensus. >> and 4.9% unemployment. it should be a solid report. that's what we expect. >> is the market going to like that kind of number? >> it's kind of mixed. we think there's a pretty good probability that the fed raises rates in march. we've been saying that for a few weeks. so we think can the core cpi where it is, one of the main drivers why they raised it in december, there's a good shot they do it in march. if you get a number above 150, i think the odds of a green light are pretty good. how the market prices that in, the market might not price in a rate hike unless we're above 200, but we'll see how it goes. >> wow, all right. so you're going against the fed funds futures market, which is not pricing in march at all. jason, got to leave it there unfortunately. thank you, though. we've got the book. we'll read it. "recession proof: how to survive and thrive in an economic downturn." that's jason schenker, prestige

economics. still to come, donald trump once again slammed by his rivals last night. then the gop presidential front runner got some support. we'll explain that later. but first, as we head to break, here's today's weather forecast from the weather channel's jen carfagno. >> sara and wilfred, happy friday. we have two storm systems, one leaving the east coast, one coming into the west. this one in the east, dropping a couple inches of snow through the mid-atlantic. also dropping 20-foot waves off the coast and generating hurricane-force wind warnings. not good for mariners are commuters who go by ferries. on the west coast, another system moving on in. this the first of many. the storm door is open in the west. we're talking inches of rain, feet of snow going into next week. this is fantastic news for a state that is 99% covered in drought. but the concern, of course, is that it will be too much at once and flood warnings and watches have already gone up for some of the burn areas.

temperature-wise, cold enough to snow in the east. we'll see temperatures rising up again today, 97 in texas yesterday. a hot one again today. that's spring for you. "worldwide exchange" continues after this. have a great weekend. your investments through good times and bad. for over 75 years, our clients have relied on us to bring our best thinking to their investments so in a variety of market conditions... you can feel confident... ...in our experience. call a t. rowe price retirement specialist or your advisor ...to see how we can help make the most of your retirement savings. t. rowe price. invest with confidence.

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join us at earthhour.org 19th march at 8:30pm ♪ welcome back to today's big political news. no, i'm not talking about the new season of "house of cards." an ugly slug fest at last night's republican debate. nbc's tracie potts joins us with the highlights. tracie? >> reporter: well, some have suggested it could be a reality

show. there was certainly a lot of energy. that's a nice way of putting it. it was clear that ted cruz and marco rubio, as they have said on the campaign trail, came into this to try to bring down donald trump. they don't want him to get that nomination. trump, well, he wasn't shy about fighting back. >> this little guy has lied so much. >> here we go. >> reporter: beyond the bickering -- >> learn not to interrupt. >> reporter: the name calling -- >> i've given my answer, lying ted. >> reporter: the insults and accusations -- >> don't worry about it, little marco. >> i don't think the people of america are interested in a bunch of bickering school children. >> reporter: there was substance in the fox news channel debate, most of it directed at the front runner. >> why did you write checks to hillary clinton to be president in 2008? >> actually, it was for business. it was. >> reporter: the moderators challenged trump on his new health plan. >> we'll save more than $300

billion a year. >> the numbers don't add up. >> reporter: trump explained why he changed positions on syrian refugees and guest workers visas. >> i'm softening the position because we have to have talented people in this country. >> reporter: trump's refusing to release a "new york times" tape that reportedly shows him backing off building the wall with mexico, but he admits -- >> you have to be able to have some flexibility, some negotiation. >> reporter: marco rubio and jay kasich agreed we now need troops in libya to go after isis. >> we have to be there on the ground in significant numbers. >> reporter: what did trurp think of the debate? >> it's getting boring. i did think it would be more evil. i did think it was going to be more vicious. >> reporter: wow. well, that would be tough to watch. we are watching the next set of republican contests. they're happening this weekend saturday and sunday in four states. >> all right, tracie potts, thank you very much. it's too bad we have to go to bed so early, wilfred. we miss america's best reality television. >> we do. although, yesterday i did watch

almost the whole speech he gave in response to mitt romney's attacks on him. i'm not sure i really followed exactly what the content of the arguments he was making were, but it was captivating stuff to watch. he just has this ability to draw people in. >> clearly. >> that's the first part of the battle, i suppose. >> the mitt speech, even if he made good points and put out a cohesive argument, it seemed to completely fall flat. >> it did. >> in fact, some say it helped donald trump, and it really helped in his message and brand that he's not the establishment and political elite. right. on to another competitive area, sports. less than a week after their epic game, the golden state warriors faced off again with the oklahoma city thunder on thursday night. after sitting out tuesday's game with an ankle injury, steph curry was ready to go. the warriors came from behind in the second half and curry seals the deal, hitting a long three to add to his game high 33 points. the warriors win 121-106 for their 44th straight home win dating back to last season.

that ties with the record of mi michael jordan's 1996 chicago bulls. >> you've got to start watching. steph puts on a show every single time. >> i'm going to the knicks this weekend. no steph curry. a barefoot walk on the beach, usually a nice activity, unless you're a pro golfer at the wgc championship in miami. mark leashman tries to play his shot out of the water instead of taking a penalty. he rolled up his pants and took a mighty swing. the ball moved about three feet. he finished the round seven strokes behind the leaders. >> respect to that. i like that. nice attempt. coming up, this morning's top stories, including expectations for the day's big jobs report. plus, are consumers ready to forgive chipotle? a new report says the willingness is rising. details when we come back. do stay tuned. you're watching cnbc, fuirst in business worldwide.

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that's why comcast business doesn't leave you there. when you call, a small business expert will answer you in about 30 seconds. no annoying hold music. just a real person, real fast. whenever you need them. great, that's what i said. so your business can get back to business. sounds like my ride's ready. don't get stuck on hold. reach an expert fast. comcast business. built for business. good morning. the most important economic report of the month now just three hours away. we're getting ready for the jobs report. a new perk. we'll tell you how employees at a handful of companies are getting $25 apple watches. and "house of cards." it frank underwood the secret to success at netflix. a new season going live. it's friday, march 4th, 2016. you're watching "worldwide exchange" on cnbc.

good morning. a very warm welcome on this friday morning to "worldwide exchange" on cnbc. i'm wilfred frost. >> and i'm sara eisen. it is the first friday of the month. that means it's the super bowl. that would be the february jobs report due out at 8:30 a.m. eastern time. with nonfarm payrolls expected to rise 200,000. can we create 200,000 jobs in the month of february after 150,000 were created in the month of january. the unemployment rate is expected to hold steady at an eight-year low of 4.9%. average hourly earnings, that's the key. wages are seen rising 0.2% after they rose about half a percent last month. also at 8:30 a.m., look for january trade deficit numbers. and dallas fed president rob kaplan will be speaking again about the economy this morning. got some earnings as well. staples and big lots reporting before the opening bell.

right. let's check in on global markets this morning. futures at the moment looking a little bit soft but nothing too meaningful. essentially flat. we started march very strongly. it's been a predominantly risk-on week, albeit the focus today will really just come down to that jobs number that sara just mentioned. >> stocks are at a two-week high, and they're holding this morning. the question is whether we can do so after jobs. >> we've held it really for the last couple days without big gains. maybe today will be slight losses but nothing too meaningful. that's what futures suggest anyway. let's have a look at europe. yesterday they snapped a five-day winning streak. today we're back into the green. again, mixed performance as you can see. over the last 30 days at least, europe's looking pretty good at the moment. the dax is up 4%. the cac is up 4.5%. let's have a look at asia. it, too, has had a decent week, driven mainly by that rrr cut in china earlier in the week, then

shrugging off relatively disappointing data over the rest of the week but nothing too significant. the shanghai comp up half a percent today. finally, a quick look at oil. that's been important. it's flat, 34.6. it, too, is holding on to gains it's seen over the last few weeks. all right. joining us to discuss markets and jobs, the chief investment strategist with fifth third bank in town from chicago. good to see you, jeff. >> nice to be here. thank you. >> these gains we've been talking about, the stock market up 3.2% over the last three sessions alone. some are wondering whether it's the stabilization of oil or could it be signs of strength in u.s. economy? perhaps the market was just too negative about our economy earlier in the year. >> i think we go with that latter scenario. this is a relief rally. if you were to read the market pay loa alone, it seemed like we were spiraling into recession. we were never in that camp. we're hopeful that the contraction we've seen in the manufacturing side of the economy is coming close to an

end. >> but jeff, if we look at the level of gdp growth as an indicator, it's pretty low. we're arguing over sort of tenths of a percent. given the stimulus we've had, wasn't that market reaction justified as people started to wake up to the fact that this central bank era of support is gone now, and that's really what markets were reacting to, not necessarily the minutia of the economic data. >> i think there is an element of what we're calling a revaluation. this is more than just a correction. it's a revaluation. that revaluation is based on the recognition that we're running out of potential policy responses. so it's not so much that we are continuing to plod along at this 2% gdp growth rate. it's that should we hit a bump in the road, there's a realization that monetary policy has run its course, fiscal policy for a whole variety of reasons around the globe is constrained, and the kind of pro-business policies that could help at this point, at least in the u.s., aren't going to happen in a presidential election year.

>> so given what we have seen in the markets and given your sort of rosy, more upbeat view on the u.s. economy, where do you see pockets of bargains in this market? >> probably the most interesting place for us might be in the mlp space. this is one of the most beat-up spaces. we think it was overdone. we think it was based on frankly faulty analysis that led people to believe that the distributions that drive mlp pricing were going to be cut. >> these are the energy, master limited -- >> correct, correct. so it's midstream, mostly pipelines. these are the toll roads in the energy infrastructure. the belief was that lower energy prices were going to drive those distributions down. we think that's a false analysis. there is some pressure on these distributions, but nowhere near the pricing that the market reflects today. >> let's touch on the banks as well. they sort of led the markets down along with oil. they bounced strongly since. there's a lot of volatility

there. there's a lot of trading to be done if you've got a strong view either way. are those challenged in profit terms in the medium term, as some suggest? >> a lot of the challenge for banks as an investor are what are your expectations for fed tightening? most have aligned their balance sheets. so they've been trading in many ways just off of expectations of fed tightening when there was this perception that the fed would never tighten. we saw banks trade down. now that there are more realistic expectations, they're trading up. >> given what wilfred said about some of the uncertainties that haven't full by been solved, there's been a glut of commodities everywhere. who knows what china is going to do with its currency. do you have to own gold in this environment? >> we've wrestled with this. we last owned gold in our portfolios back in february of 2012. we have considered it. we just don't think it's that compelling a case. obviously would have, should

have, could have had we talked about it six months ago for all the reasons that have been driving gold. but i think that trade, it's too late to get in at this point. >> just very quickly, jeff, jobs forecast for today, the number? >> we go with the consensus, but what we think is important at fifth third is you have to look beyond just the nonfarm payrolls. as the labor markets tighten, other factors become increasingly important, not just the average hourly earnings but very much also, what's the underemployment rate? that's where you have the reservoir of slack that's left at high levels. we're going to take all the numbers into consideration. plus, labor force participation seems to have bottomed in september. >> but still historically low. >> very low, but it's all about the next direction. >> jeff, thanks so much for yoining us this morning. much appreciated. a few stocks to watch today. hp enterprises's first quarter profit fell, hurt by restructuring costs. revenue beat forecast.

the company says it plans to return about $2 billion to shareholders. it's up 6% on the news. gap says february same-store sales fell, dragged down by banana republic. this is the 11th straight month of same-store sales declines for the company. h&r block's third quarter loss widened, facing headwind overseas and less traffic in the u.s. as consumers are waiting longer to file their taxes. >> now to today's trending stories. a survey yesterday showing consumers may be finally more willing to eat at chipotle. sentiment bottomed in january after the e. coli scare. digital coupons for free entrees in the back half of february may have helped draw customers back in. chipotle also hired a pr crisis team as they try to work to recover. the firm is best known for helping j&j recover. >> i'm one of those consumers. at least once a week since i've

got here. >> you have? well, remember, they put off a brutal fourth quarter, where sales declined. the scary thing for some analysts is january same-store comp sales looked worse. potentially a rebound if this survey is right. >> i'm only not eating enough to help. >> well, the e. coli problem never came to new york. and some employees are getting $25 apple watches. but there's a catch. hit your fitness goals or pay the price. i like this. not sure it will catch on. virtual reality roller coasters debuting at six flags in texas. riders wear 360-degree headsets synced with the roller coaster traveling at a 55 miles per hour. this is the first of its kind in north america. only a matter of time. this makes me nauseous just to watch the video of it. you really have to have a strong stomach to do that. >> i want to go. i've been to six flags in l.a.

it's epic. good fun. >> there's a very good one in cincinnati too. >> right? okay. i'll have to go then. when we come back, this morning's must reads, including why no matter what happens in the race for the white house, whether the candidates try to block or stand donald trump, the republican party as we know it will never be the same. this is a very good op-ed. you're watching cnbc, first in business worldwide.

it is now time for today's must reads, the stories catching our attention. in "the wall street journal," this one is titled "the republican party is shattering." it's by peg by noonan. she's writing, you have to have a responsibility when you lead not to offend needlessly, not to impose realities you yourself can buy your way out of. you don't privately make fun of people. she's going after the establishment republican party here for missing trump, for being in denial about trump. i found it refreshing because so many op-eds, really every single one out of every single day from prominent republicans, are we have to stop trump, never trump, here's a list of 35,000 reasons why no trump. here she is not taking that tact. she's saying it's going to be very hard to stop trump, so let's do some soul searching for the republican party and figure out how they got this so wrong, totally missed it.

it's a pretty depressing read, but her upshot for republicans is that the party will never be the same no matter what because it is really splintering. >> as you say, very refreshing. interesting as well earlier in the week, we saw people like rupert murdoch echo similar sentiments. the vast majority of republican commentary has been anti-trump. my make today is in "the financial times." it's titled "japanese monastery firepower misses the mark." the author writes, no easy way to translate shoot yourself in the foot into japanese. she goes on to say the sad message is that japan and its central bank seem stuck. i think it's an interesting take on the way that negative rates in japan are not working. she links it very closely to the ipo of japan post bank, which we had a few months ago and the way negative interest rates really has not helped at all in terms of the japanese economy. i think it's well worth the read, as we come to central bank week next week. will europe follow and ease

further? will it have any traction? >> will it go into negative rates, as the reaction to japan has been so negative, or will it just expand qe. >> the pressure is certainly on draghi to do more. >> and how the market reacts will be fascinating. we're approaching the top of the hour. that means the crew is getting ready for "squawk box" from new york city. joe kernen joins us with a look at what's coming up. curious what you thought of the debate last night. >> i did what much. i watched a lot of it. not that much different from the previous debates that we saw. i think the marquis of "worldwide exchange" for wilfred. i've been thinking about that. that's above an earl, isn't it? >> i don't know. wilfred? >> i don't actually know exactly what a marquis is. it's one of those phrases or titles that doesn't exist anymore. even, i'm afraid, despite those things popping up in "downton abbey." it's not actually the reality of

britain anymore. >> what's old is new, wilfred. just because it may have not been used recently doesn't mean that we can't resurrect it. >> i like the sound of it. you can call me the marquis of "worldwide exchange" if you like. >> you guys aren't married. i mean, you're work husband and wife sort of. we have that stuff here. i don't know what we are, siblings. >> no, we're a proper couple. i don't know if you saw our netflix open, joe. if you didn't, we'll give you another chance. >> what are you? what is the wife of the marquis? >> a countess, i think. >> oh, that's perfect. that is good. h >> what about the duke and duchess of "worldwide exchange"? >> that's not bad, but i think marquis might be above. i'm not sure. i got to see a ranking. you need a pretty high one. >> you need a flowchart. >> do we want -- with the stock market, let's say we got 250. so what does that do on jobs? >> it might be too good, right? >> i don't know. you know what else? we're in election season. we always say it's the most

important jobs report, most important economic report of the month. now it's the most important debate. so we're fully in election season. i'm not even sure it matters as much. and we're going to probably be looking at all these numbers in reference to what happened. i thought romney was interesting. >> but it sort of fell flat. he pushed back. then the focus today has been on the debate, rather than the romney argument. joe, i'm afraid we're going to have to leave it. >> don't be afraid and don't ever say you're sorry. >> i'm just trying to be polite. marquises are always polite. >> sara, you ever go to coney island? >> i did. i like kings island though. >> it's too new. >> joe, we got to go. 14 minutes left until "squawk box." one not to miss. coming up here on "worldwide exchange," "house of cards," a huge day for frank underwood fans. we'll talk about his importance to netflix and the important of

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"worldwide exchange." today is the day you've all been waiting for. the release of the fourth season of netflix's hit series "house of cards." forgive us for that intro. i hope you enjoyed it. >> we're both fans. we went crazy for it. >> we went all out. we had to do it. i'm delighted that now we can discuss the future of netflix and what "house of cards" means to it. joining us now is arik from recode. good morning to you both. thank you for sitting through that minute intro. >> you guys have a lot of fun. >> we do indeed. we're going to have a lot of fun now for the rest of the show. let's kick off with how valuable "house of cards" has been to netflix. why has netflix done so well? is it because of original content or just because it created a great platform? >> well, we have to understand

"house of cards" is the prototype for the great scripted show, but it's been built on a couple of interesting things. first off, netflix had an awful lot of data from its streaming service. so it understood exactly what would play well. they knew that a political drama played well, partially because people were streaming a lot of, i don't know, maybe "west wing" or the original british "house of cards." they had a good sense of that. but it really set the standard for other streaming services. now we see hulu getting in on the game. we see amazon getting in on the game. it really set the standard. it's a seller's market if you're making scripted television. >> but it's also been costly. that's what investors have to weigh with netflix. are the costs outpacing the subscriber growth, or are they leading to more subscribers in a way that investors can be pleased about? >> the investment has been a virtuous cycle for them. if you go back five years when they were still mainly a dvd company and starting into streaming, everyone said no one

will sell them content. the funny thing about "house of cards" is actually they didn't buy it from a network. they bought it directly from content creators. so that kind of changed the dynamic. it's really not about one show for netflix because my wife and i like "house of cards." we're behind a season and a half. we have little kids. it's hard to find time to watch these shows. they like stuff they've done with dreamworks. we like all the cooking shows they've done recently. they did a chef show. they have a new one called "cooked." so if you go back, you know, when i was kid, there were four tv stations. then you went through this period where cable tv exploded. you had 200 stations today. now everyone is saying, what do i watch? netflix didn't sort of change the content model, they changed how you consumed it. that's been the big change. the thing is that five years ago when they did quickster and the stock fell 75% in the span of a week, no one thought they could

do it. so at that point in time, it was very interesting to me, but today trading at 85 times ebitda, i have a little trouble. we don't own the stock. actually, pandora today reminds me a lot of netflix five years ago. there's all these big guys coming in. the amount of reaction to pandora today reminds me. i had a dinner with the cfo of netflix a few years ago, when i was on the sell side. i could not give it away. no one wanted to touch this stock. the stock is $9 then. it's over 100 today. >> and they had a great year, of course, last year. suffered a little bit more this year. let's get back to the exact content that's on offer. arik, so far you mentioned the term scripted shows. that's mainly what's there. there are a couple others. when does this model of live

streaming rather than traditional broadcast media, when does it apply to other areas of tv? when does it start to dominate and change the markets there snrch. >> it's an interesting experience partially because the other thing i'm looking forward to is the debut of mls. i will not be watching it on traditional television. we cut the cord in my house. i'll be watching on the apple tv mls app to watch the portland timbers take on the team from ohio. so sports is still the one thing that's really kind of iffy. you can still watch a lot of espn and that sort of thing. but the big stake, sporting content, is still missing. >> when you were talking about the stock, dan, you mentioned it stumbled. you're not a buyer right now. the technology stocks haven't been doing well this year at all, except for facebook. do you see it as a momentum type thing? is that why they're selling off, because of this environment, or is there something specific to

netflix that's being questioned? >> i don't think that it's being questioned per se. i think the problem is that everyone gets it now. it's really not a debate of whether netflix is part of the media ecosystem. they have 75 million subscribers, i think, in two, two and a half years. >> but don't they have the runway for international growth. >> it's 45 million domestic, 30 million international. there's 115 million homes. the problem with the stock is everyone hated it and all the sudden now everyone loves it. it's hard to -- we know where it's going. it is the first global media network that will have 100 million subs in a couple years. you have to look for opportunities. we own google because we think they'll do great things with youtube. they're sort of the standard for advertising. 20 times earnings. pandora trades at 1 1/2 times

sales. netflix is at six. so you have to sort of pick your spots. if netflix pulls back a lot, if we get sort of a real correction, not this sort of mini january thing we had, then it's an opportunity. but again, 85 times ebitda, people understand this is a great company. >> and arik, very quickly, netflix took big gambles invest l in con tent, does apple have to do that? >> i think so. we're beginning to see apple experiment with that. apple is going to have to use its cash resources to start producing content too because people -- we never hear people talk about itunes. >> we're getti inting rave revi by the way, with our "house of cards" open. i think we're going to go into acting. >> acting or politics. it's sort of one in the same thing at the moment in the u.s. election. guys, thanks very much for joining us. much appreciated. as we wrap things up, a quick look at futures. looks like we might hold on to some gains this week. >> everything educational background change with the big

jobs report at 8:30. "squawk box" will have it covered. 200,000 jobs expected for month. we'll see what happens. have a great morning. rican cent. born with a hunger to fly and a passion to build something better. and what an amazing time it's been, decade after decade of innovation, inspiration and wonder. so, we say thank you america for a century of trust, for the privilege of flying higher and higher, together. ♪

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good morning. welcome to jobs friday. we'll tell you what to expect when the february numbers hit the tape later this morning. got some saber rattling in north korea. kim jong-un ordering his country to be ready to use its nuclear weapons at any time. and a battle royale in detroit. the gop candidates come out swinging, and some of the attacks again got personal. highlights straight ahead. it is jobs friday, march 4th, 2016. "squawk box" begins right now. live from new york, where business never sleeps, this is

"squawk box." good morning, everybody. welcome to "squawk box" here on cnbc. happy friday. i'm becky quick along with joe kernen and andrew ross sor kin. as joe mentioned, it is jobs friday. we'll be getting the government's employment data for february at 8:30 a.m. eastern. economists expect the payroll to increase by 200,000. they're looking for the unemployment rate to remain steady at 4.9%. i think the average hourly wages are expected to be up 0.2%. let's check out the u.s. equity futures. you'll see this morning that there are some very modest advances. the dow futures up by about eight points. s&p up by less than a point. if the dow and s&p were to finish up today, it would be four days in a row, and that's the first time that would have happened since october. green arrows in asia overnight. the hang seng gaining more than 1%. the nikkei and shanghai composite both looking at modest advances as well. overseas in europe, right