good morning. it 8:00 a.m. at square headquarters, and 11:00 on "squawk alley live." ♪ when you can't ♪ you don't stop ♪ you are coming down for sure ♪ i got the guerin it like you ♪ and everything i do is good ♪ so take it up one, two,

three ♪ welcome to the "squawk alley" and kayla tausche is off today, but jon fortt and i will be here to help you through to today, and joining us is care ra fisher, and now, start with square, and the the hit investors on the surge, and kayla did catch up with jack dorsey last night on closing bell. take a listen. >> you took guidance up for the full year and you said that you would break even in the second quarter, and that assumes that the costs don't go up dramatically, and that there are not any more one-time charge, and what is the line of sight into the rest of the year? >> well, it is pretty good. we have always had a good sense of the business and where it goes, and what the dows are, and so i feel good about the trajectory, and the ability to predict where the business is is going. >> your company beat on the top line and raised the guidance for the full year, and twitter miss

and lowered the guidance and how do you keep the two companies from die verging and the story a positive one? >> well, we focus on what matters, building the service, and product that people value every single day. >> square is on track for the worst day since going public in november. and kara, they are raising the guidance in the face of the operating expenses, and what they are calling challenging credit d market condition, and what is your take? >> yep. that is the one-time cost for the legal fees that they have paid about who invent ed the actual dongel itself which upset people, but it is problematic as to how can the company become big i guess, but at the same time encouraging things around revenue and other thing, and people are worried about the expense, and what it takes to get there and the competitive market, and buffeted by the external factors, too, and so there are worries about it, and on top of it a ceo who works

halftime, and all of them created this right now. >> and kara, is there, you think, a general pessimism around growth of a number of these companies right now -- >> exactly. >> and square is trying to make the pivot, and it is about the dongle that you could swipe your credit card in places that you couldn't before and then they talk about coachella and looking at apple pay, and they want the logo to stand for you can pay with the phone now more because it is faster than other methods and trying to make the shift of the loaning money to smaller businesses to help them grow, and that being part of the strategy, and do investors at this particular time, do they just not have the patience for that? >> well, i think that a lot of the companies that you are talking about, and there sis a question of where the growth is, and the dongle was never the business. they obviously want to go to software and not rely on these thing, and it is put ing ting it thing, and not everybody does, so i think that the question is, can they grow this business in

the face of so many other payment methods and get people to use it, and again, a kconsumr adoption thing, and the emergent adoption thing, and you will see a lot of the merchants that are using them, but the question is if they can take it to the next level and get revenues, and you know, sort of like the next level of business and people are worried about that and combined with the extra costs this quarter, and you know, the uneven environment going forward and a lot of nervousness where the real growth is going to be coming from, and the investor don't want them to experiment on the dime presumably. >> and you are talking about the nervousness, care -- kara, and number of the businesses are trading up, and square is also given some benefit of the doubt at 9? >> yes, it is interesting and promising market, but it is questions of whether or not it could be purchase and there are things going on that is positive and compared to twitter, it is

doing great for jack dorsey, and it has a strong team, but i think that there is a generous nervousness around a lot of the companies of where the growth is going to be coming from, and the electric growth is going to be coming from. no question that all of the areas are growing, but it is how much, and it is a lot less than it was and not on the rocket ships, and if it is not growth and not revenue, what is it? that is the nervousness around the company, and others, and many others and not just them. >> yes. and meanwhile, gopro down with the first kwa er sales falling 50%, and they say they will delay the lawn toch drone product later in the years, and ka kara, when that piece of the news hit, i thought of you, because it is woodman code who first uttered the words to the audience. >> yes, and again, here it is another product, and future grow growth, and where is it coming from? and the saturation around the cameras and the competing products coming in from china and other places is problematic,

and now they are moving into another area, hoping to make the leap and hoping it is another big business and it is delayed and wall street is freaking out, and justifiably so, and that is the question, when is this thing coming out, and it is really good, because now we can get it out for christmas which is not something that investors wanted to hear. >> as a long-time observer of technology, kara, i keep wondering if gopro is going into the hardware death spiral where where they released a product that they priced wrong and released it at the wrong time of the year, and they got behind the eight-ball on the inventory, and say they worked it out, but now they are delaying the release of yet another product that is probably not going to be getting broad mainstream acceptance, because it is so high priced. in the midst of all of this, the company is saying that the big problem is software, and the product is too hard to use and working on it, and they keep saying, we are working on it, but they have not released the solution yet. how long does this company have to actually fix all of the

problem problems? >> the hardware business is a difficult business when everything is working right. look at apple, and you foe what i -- you know what i mean? even when you have a lot working for you and difficult in the cycles, and you can't continue to have misses and again, it is expectation on the investor's dime, and they will extract a price for having done, that and there is a good question around, you know, the drone space is questionable. is it going to have mainstream experience? i'm not buying a a drone. maybe you are. and there is a lot of drones coming out, and the camera space is saturated, and it is, and the question is how big can it grow, and it is not to say it is not a great product, because the gopro product is a fascinating study in hardware and a wonderful product for a lot of people, but for those who want to have them and want them, do they want to keep upgrading? and hardware is a bear, because even when you want to, it is

difficult. >> and i have one, and it is in the shape of a vulcan. >> and it will break in 20 minut minutes. >> and now, kara, the yelp is on track for the best day in a couple of years now, and the struggling tech names in last three months, zynga and yelp and others moving to the upside, but have they been left for dead? the expectations had gotten really low. >> the expectations had gotten low, and they bump along. zynga has a new ceo to fix it around expenses and areas to cleep it up. it deed that, and those efforts as he cleans it up, but the question is can he take it to the next level? that is the issue. yelp, that is a terrific product, and how big can it get in the face of google pulling out all of the stops on the listings area, and all kinds of

people doing it not just google, and et si -- etsy which is doing well in the area, but the question is how big does it get? people are nervous around, and linkedin, and i don't know, because it is all about can they maintain the kind of growth they have had, and again, they were on the electric growth path and the then they are not, and the same time enormously valuable product, and few competitors in the space, and trying hard to become a destination almost, and they bought, what is it called run hop the try to help content, and people using the content, and is so, you know, lipkedin probably got beaten up more than it should have, but it is a terrific product, but the question is where's the growth? where does it go? it has gotten bigger this fast, and how can it continue? when you live by the growth area, you will die by it if you don't reach those numbers and then you are a regular company like others.

>> and some living and dying by the same week as we are looking at etsy in the same market getting clobbered. >> very nervous market. and very nervous. i was at a dinner in the silicon valley, and you could feel it, because a lot of people in the silicon valley go to, and it is a charity dinner, but it used to be dozens of million dollar pledge, and few er, and it is a nervousness and i could not even put my finger on it, but there is a nervousness here and in the markets about these companies. >> and kara, on that broad point of nervousness, and going into the second half, you are looking at the sunday, ostensibly, a rate hike, and brexit vote and election here, and not the to mention the seasonal reduction in the volume, and that is all weighing in on silicon valley as the east coast? >> well, we are on a pause. i feel like a pause moment. like somebody told me last night and i agree with him, that they

can just feel all of the big companies about to suck up all of the little ones and win again, and some of the big companies are in great shape, facebook, google, and apple and amaz amazon, and the people are like the party is over, and it is not completely over, and not a crash, but it is a pause going on in temperatures of the innovation, and a pause in terms of investment, and people are slightly worrying, and cleaning up a little bit. so you are going to et get this in the market, and feel the same thing in the market. >> and hey, nice new logo, and we look forward to seeing it later in the week. >> you like it? we are fan it is. >> yes. >> thank you. a lot more the come. >> and kara swisher executive editor after re/code. thank you. and we want to the look at the market indices trading down on the quarter and a half, and the dow doing the best of the about 46 points better, and the nasdaq is the worst down half a percent and the s&p 500 in the

middle at 2043. at one point the nasdaq re-entered correction territory touching a two-month low, and acquisitions of blizzard with the company giving upbeat guidance of the strong sales of the latest "call of duty i "game. carl? >> when we come back, the battle over to the competency of sumner redstone at trial today, and going back to the courthouse with what to expect. and a reading on the jobs and as you know, 1160,000, and ed l lazear is going to break that down, and also, we will talk to the new trump finance guru. [ beep ] but you'll be glad to see it here.

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the sumner redstone trial is finally coming to trial, and it is schedule d in 15 minutes in downtown los angeles, and julia boorstin is there with a look at what is at stake. hey, julia? >> well, john, when the trial begins today, first up is the testimony from sumner redstone and the court will hear from the media mogul pre-taped testimony, and the courtroom is closed for that, and we won't be able to watch it, but there is a transcript that is going to be released. in the lawsuit, two key issues.

first with sumner redstone, was he mentally competent when he removed his health kcare worker as the proxy is and kicked her out of the mansion, and was he two, unduly influenced by toez of the inner circle about that. and we have heard that he was incompetent and living ghost obsessed with sex and steak. and then he stepped down as both cbs and viacom, and replaced by the ceos of those companies les moonves and if it is found to be true, that is going to shift the trusts of viacom over to the seven trustees and his daughter shari and his chairman and ceo philippe dauman, and for viacom in particular, the stock is down 39% in the past year.

now, there is also some other testimony scheduled for today in addition to sumner redstone, and the herzer's medical expert, and plus the granddaughter karen, and if there is time, also testimony from the viacom ceo philippe dauman. and that by videotaped video. >> quite a day. and now, the markets are looking at the dow down 30 point, and shaving some losses, and the s&p is down 30%, and the nasdaq down half a percent after the nasdaq added lower than expected 160,000 jobs in april. and we will be joined by rick santelli and ed lazear in a moment.

twitter an square both having a rough month after disappointing quarter. square is on track for the worst day since going public down now close to 20%. jack dorsey joined kayla on the

"closing bell" yesterday saying that he is trying to stay focused. take a listen. >> we focus on what matters and what matters is actually building the products and the service. again, we want to make sure that we are building something that people value every single day, and we are driving around building a daily you tutility t everyone can benefit from, and that is what we can control, and you know, we are showing it. we are focused and we have it prioritized and we know what comes next and what to do and we know what people love, and we are make it bet ter. >> with us now, an investor who has major holdings in several tech stocks, morris mark, president of the mark asset manageme management. what is your take, and start with square on this quarter, because it seems like a lot of the reaction today which is brutal is based on the difficult credit environment comment which cfo then came back to try to

clarify saying that it is difficult for everybody, and we are not saying particularly difficult for us, but we have investors lined up, and we feel good about the access to capital. what do you think is going on here? does any of it have to do with jack dorsey not belonging to just one company? >> it has almost everything to do with jack dorsey not belonging to one company. you have two companies that are incomplete franchises. twitter is intriguing, but it is a full-time job, and especially when you are competing against people like mark zuckerberg and larry page who are totally focused, and who have people behind them that are totally focused. so we have been disinterested in these names. we are not short them, because i think that the potential franchises, but there is nothing to do. >> and morris, we had you on after the facebook earnings and i asked you if you owned any twitter and you chuckled and said, no, no, we don't. and your point at the time is

that any m&a optionality ie like with a google would probably be delayed because of the eu. and do you see any other opportunity for them short term? >> no, i think that they should stick to the business. they should make it easier to use for ordinary people. i think that younger people are very comfortable with it, and people who are in media like you are very comfortable with it, but it should be easier to use, and more focused. i don't write software, carl, but i just know that talking to people how they feel, and i now know that the margin has more come e competition for them. and facebook articles for example, example, and so i think that it requires a full-time ceo, and this is my opinion. >> morris, give me your take on the growth tech, and sort of the smaller cap tech in general right here, because it seems to be all over to the place. you have yelp down for a while that is having a nice little pop here, and maybe the things are

not as bad as expected and you have a glasion who went public and down even though the results are not that bad, but is it a valuation reset and the investors in general are not believing the growth stories the way they used to or do you see the opportunities here as an investor the jump into some of the names? >> i want to avoid the mack row, because obviously if the economy were growing faster, there is more room for more new ideas, but i think that one of the things that you have to realize here is that data means a lot. and the big companies in this e area, the googles, the facebooks, the amazon, and the apples, they have and are accumulating tons of data everyday about their users, and about their customers and about the services that they provide, and that leaves less and less room for people starting, unless ta have a real niche. we have some names that we like

that we believe have a great niche. but once again, it is because they have tons of data and they have an established franchise and they have real businesses. >> we have had a debate the past couple of week, morris, about which model ceo works better, one who is a great collector of portfolio pieces, ie zuckerberg, or one who wants to innovate from within at the expense of m&a like a tim cook. do you have a preference? >> well, the way i look at it, i think that zuckerberg, and remember, he started in the software and he is bright, and creative, and he appreciates the value of creating the product, and then he makes the acquisitions based on that, and this is how apple is built, and i'd like to believe that is how tim cook is going to approach it. when you are sitting with $150 billion of cash earnings zero, and you have important strategic

initiatives it seems they should accelerate the growth at a scale of doing one or two things strategically. >> and morris, you an interesting point that i want to go back to about the importance of da ta, and is that the new sales force, and the customer penetration, and it used to be for the oracle, and the ibm for xexam ple, they sold so much ino businesses to begin with, they could fold in other businesses and just gain shir of the wallet, and data like that where you know enough, and you can do better than others are going to do? >> absolutely. this is going to transcend some of the tech companies that we are talking about, and it is going to focus on the american economy, and companies that have accumulated data have the ability to use it, to have either their own or access to the data analytics, and have a

strategic advantage. it is the key to building the franchises and the key to building businesses. >> all right. well, that is a key insight that our viewers i am shure appreciate. morris, thank you. >> pleasure, carl. thank you for having me. >> and when we come back, ed lazear on the ecomonic advisers and the numbers as well as a look at donald trump's economic plans. ♪ bend me shape me, any way you want me as long as you love me, it's alright bend me shape me, any way you want me...

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good morning, feveryone. i'm sue herera and this is the update at this hour. prime minister erdogan thanked the country for the resigning prime minister's service. >> and the italian navy said that 1,200 migrants were rescued are from boats in ten operations in the mediterranean thursday. video and photos released by the navy showed the migrants sitting on ub rubber boats. >> and washington, d.c.,'s metro stati is system is back on track after two fires were caused by a

faulty insulator on the third rail and debris on the track. in switzerland, the voters will decide next month if all 8 million citizens should be guaranteed $2,600 tax-free a month, and children guaranteed $650 a month, and payment regardless of the work status or the income or the wealth, but the latest polls show that p proposal is going to be likely defeated. we will keep you posted on that one. that is the news update for this hour, and back downtown to carl. >> thank you, sue herera. europe is closing off of the morning lows, but still down for the week. and simon is here. >> yes, very much so, carl. we were down heavily and we cut the losses in the wake of the employment report and moving through the rest of the u.s. session. but it is a rough week as carl suggests for the european stocks importantly. and in the country of course, if you are looking at the s&p 500, you are down almost 1%, but in europe, the gain is, we will call it 3% for the sake of argument, and it was ten minutes

ago, but we have just come off of it, and lot of it is the people selling into the bounce, the stocks doing well, and the miners spring to mind, and arguably the banks. and standard charters here with correlation of what is happening with oil, and brent and deutsche bank as well down on the week, and there is a week of a lot of discussion about the hedge funds and what has worked and not worked on the quarter. the largest quoted hedge fund manager in the the world is mann on the ftse 100, in london. and citi moved it to the sell recommendation, because they believe that the generation of the performance fees moving forward is going to be challenged, and whilst it might be a full service alternative to the investments solutions provider further down the line, but it is not something that you can grasp on to at the moment,

and actually archie man is one of the gainers on the european markets today. keeping an eye on greece, there is a 48-hour strike in greece as people are protesting the pension reform and parliament are will vote on that monday, and then monday, the greek prime minister is going to be sitting down with the eurozone finance ministers in an emergency meeting. he says these measures are important or the otherwise the benefit system will implode in greece and that the people will be on the last mile to resolution here. >> and it is going to be a day to watch sunday. >> yes. >> and now, we go over to the cme group, and get the santelli exchange. good morning, rick. >> good morning carl, and good morning ed lazear. >> good morning, rick. >> all right. listen, first half i want to talk about the number today and you saw the data 160,000, and little bit better on the wages burk -- but i am getting a

number of e-mails saying oh, it is the baby boomers retiring bush the tables don't bear it out. it is that those are losing jobs at the expenseff those younger, and can you comment on the data point? >> well, quick ln to last point, and unfortunately, that is the trend in the whole recovery, and the fact that the prime age workers are not doing as well as the elderly workers tells us that there is fundamental weakness in the labor market rek recovery. and are let me jump to a couple of points earlier that you mentioned when i saw you this morning, and you were at the high endf of terms of the predicting the employment growth. >> i was, and i did not do well today, ed. >> no, you did do well. and you did do well, and the reason is that people are misreading the employment report. this is about the same as previous employment report, but it takes a slightly different form, and what happened is that weekly hours went up, and even

though the employment growth was slightly below where it was in previous months, but the hours are huge. so 0.10 of an hour is equivalent to one job in terms of the demand. so this month was not bad as compared to previous months when the hours fell. so generally i would say that it is kind of on par with what we have been seeing all along. and the other thing they should mention is that in order to keep the pace with the population growth, we need 132.5 thousand jobs to equal the growth. so in the past five months we have been above it by 80,000 or so, and so we are kind of muddling along in a slow recovery, but a recovery. >> all right. now, the second part, policy. ed, one of the things that is near and dear to me and millions of americans is debt. okay. >> yes, absolutely. >> i want to look at both

candidates and draw some observations from you. first is clin torngs and of course, secretary clinton in 2010 made the following comment, i think that our rising debt levels pose a national security threat, and they pose a national security threat in two ways, it constraints us to act against threats, and undermines our capacity to the act in our own interest interests, and does constrain us, where constraint may be uncan desirable. and this is trump in the rabbit hole. >> there are times for us to refinance, and we have refinanced the debt with longer term, because we owe so much money, and i could see the long-term renegotiations to borrow long-term at low rates. >> and ed, i want you the comment on the context that neither is for smaller government, and neither seems to with for putting the entitlements on the table, and the third rail.

is donald trump going to be sending the credit into a tailspin or the only candidate being honest in arriving at the conclusion that the debt is too big to ever pay off in current terms? >> well, i think that the debt is not too big to pay off, but the problem is that we need to get control of it and get control of it quickly, and remember that the debt has doubled over the past seven years or so, and what that says is that in the long run, we are in big trouble, and long run is not that long. so even if you use the president's numbers, and the nu numbers from the administration, and if you use the cbo number, we are talk about the large increases in the public debt over the next two decades, and that not sustainable into the long run. now if you are looking at the candidate's plans, the tax plans, and the spending plans, trump has not said too much about what he would do in the spending except that he says that he is not going to be cutting anything. and he has said -- >> well, spending is always the wild card, isn't it, ed?

spending is the wild card? >> yes, it is, and mrs. clinton her tax increases are relatively small as compared to the spending increases. so she is talking about a deficit increase, and trump is talking about a deficit increase because of the cuts so pronoupsed so both are talking about increasing debt which is f fundamental and in fact, i wrote about it last week in the journal. i wish it were front and center in this campaign, but unfortunately, it is not. it is last time, but it is not this time. >> well, you know what, in the final 30 seconds, ed, you know, the notion of renegotiating the best credit on the planet just makes me perspire. and your final thought not about any candidate, but is that an i end ta yhat you hope to see in s country ever? >> well, no, renegotiation is another word for default. so we don't want to have to renegotia

renegotiate, and we want to pay the debts responsibly by growing out of what we have to the extent possible, and cutting the growth and not cutting spending, but cutting the growth and spending in the future urg and if we do that, we can have a sound government policy and sound economy again. >> thanks, ed, for the observations, and always interestin interesting, and you have been, there and you know what it is like to try the to get something done. >> absolutely. >> back to, you jon fortt. >> thank you, rick. sitting down with one of the biggest names in entertainment history, the creator of "happy days" gary marshall is going to talk about his latest project when we come back.

>> coming up on "the halftime e report" it the key to the rally and we will tell you how the play it. and what was said about herbalife that has the stock surging. and we will talk to a top fund manager in the tech sector about his trading space. back to you, carl. >> you would find somebody hard with this resume garry marshall who has the hits such as "hapy n days" and "mork and mindy" and he now has "mothers day" coming up, and we asked him where all of the romantic comedies have gone. >> one thing about film, they don't make the movies like this anymore, and what happened? >> we ran out of money for the explosions. no, i don't do the explosions,

and nobody flies, and actually people sit still and talk and try to get through life, and i find life amusing so it is funny, and the moments are sad, and this movie is a salute to mothers all over the world. it is a hard job, you know. >> why did hollywood fall in love with the explosions? i mean to, the expense of everything else? >> well sh, we take the high ro for a minute. aristotle wrote, and socrates and play toe, they were not into show business, but aristotle was. he wrote the poetics, and he wrote in the poetics, a beginning, middle and end, and you need a beginning and middle and end to tell so the story, and l.a. and hollywood has changed it. you don't need a beginning and middle, but you need an explosion and somebody flying. so i believe in a story. and to make a story without explosions, you need stars who

can act, and i got them. >> because they want not only do they want to work with you, but they want to work with you again and again and again. >> yeah, well, we hang out, and we have a good time. i try to make a party out of this shoot, and i changed my style of directing a little bit now. i have included naps. naps are a good thing. very creative. and then i'm all ready for them. >> one of the giants of the both film and television. of course, he is talking about the romantic comedies and the lack of them on the weekend where "captain america" is about to go unopposed to into the box office, and essentially replace "jungle book" as the number one fi film, and it is an embarrassment of riches for disney >> yes, it has, and thinking of garry marshall and the tv of my childhood has him all over it, and shochandra rhymes is also i

that space. >> he has great tales of how the fonz, the character came to b and putting robin williams on television for the essentially first time. you will hear more as we go on. >> amazing stuff. and donald trump is hiring a new finance manager to work on the presidential campaign, and trump's financial guru is going to be joining us live when we come back.

you heard it all through the primaries, donald trump self-funding the campaign, but don't expect that rhetoric to continue. the campaign hiring a new national finance chairman as it shifts to the general election strategy, and the presumptive gop nominee calling into squawk yesterday voicing concerns about the economy and the pending debt crisis. take a listen. >> what do we do with all of the money that we owe everybody when the rates are going up and now all of the sudden we have to borrow at two points more or one point more is devastating, but 2, 3, 4, 5 points more? it is a real dilemma, and we have to be very, very careful. i am the king of debt. i do love debt. i love debt and i love to play with it, but now of course sh, are talking about, you know, you are talking about something that is very, very fragile, and it has to be handled very, very careful carefully. >> and joining us this morning new trump financial adviser steven mnuchin.

thank you for being here. >> thank you. >> and your points are making headlines look at your past in goldman and soros, and some argue tag you and trump are somehow at odds, and do you see yourself as a odd couple? >> we are not at odds at all, and as a matter of fact, there is a talk about the past, but i have spent the last seven years being a banker, and building 11 west bang and lending to small and medium-sized companies. >> how long have you known mr. trump, and what is characterizing your relationship over the past couple of years? >> well, i have known donald 15 years personally and oprofessionally and i have known him for a long period of time. i was at the new york primary two week ago and donald called me up the next day and called me up and asked me if i would take this job and i told him i would, and then i went to indiana to see him on the road and it is exciting to see 20,000 people

showing up for the rallies and to be a part of the campaign and i'm excited to be on board. >> and steve, i know that unifying the party is one of the things that you see as your role as a finance chair, and get turnout going for the whole campaign, and another area that you have highlighted is outreach to the hispanic community, and given that cinco de mayo was yesterday and donald trump tw t tweeted it in the tweet that ended that i love hispanics, and tell me how that plays in your strategy? >> well, one of the big parts of donald's appeal, and i saw it when i was out there on the road with him is that he has very, very broad-based support. and there is new people coming into the party that haven't been at a party in the past, and there is huge voter turnout in the primaries and i think that we will continue to see it through the election, and so i think that it is both historical people in the party as well as reaching out to whole new group. >> and a lot of discussion about the fund-raising strategy from here on out, and of course, he had made a big point in the

primaries of being self-funded. he had gone after cruz arguably at one point and he said that goldman sachs owned ted cruz, your former employee, and how would you advise people to square the circles? >> well, first of all, the fact that he is self-funded the primary is really impressive. and he commited a a lot of resources to that and he is continuing to commit a lot of resource s resources to the general election. given the size and the scale of this, and we are going to be raising over $1 billion, i don't believe that anybody would expect that he would be funding that himself, and we have a lot of broad-based support. it is going to be a process of working with the party, and we are in the process of signing a joint fund-raising agreement with the party, and we will be putting all of our resources together with them to raise money. and where both the campaign and to support the party more generally. >> any type of fund rraisers,

steve, that are out of bound, and are you focused on the smaller money or are the bigger, multi thousand-plate dinners very much in play still? are there any optics problems on either end of the spectrum for donald trump? >> well, i'd say that first of all on the small and the medium-sized gifts that is going to be a big part of the campaign and the broad-based supports, and like everything else in the campaign, nothing is completely conventional, but as it relates to the fund-raising, we will have some conventional aspects and some new aspects, but i think that, you know, what we will be doing is the broad-based events where there are people who want to support him and see him, and we look forward to that. >> and characterize how you think that wall street is going to be warming or has warmed to his campaign over time? we talked a lot about carl icahn's involvement in the thinking about the financial world, but how closely aligned is trump to wall street? >> well, i would say that i

literally got hundreds of e-mails and calls yesterday from all different types of people in finance and the financial markets and people who run companies, and people who run the hedge funds and various different things, so i think that there broad-based support from lots of different aspects of the financial community. >> and when they say that when they are expressing the support, what does it sound like? what are the kinds off things that they are saying that they like about trump's platform? >> well, first of all, people like that he is willing to run and doing this and we have a businessman who is running for the presidency. you know, i see a lot of people who like his economic plan, and particularly his tax plan. i think that tax simplification is very important to the trump plan which is going to go down to four brackets, and literally anybody who is earning $25,000

or less as an individual or $50,000 as a married couple won't have to pay taxes, and they will file a one-page form and tax simplification, and lower the corporate profits and we will grow the economy, and grow business through tax simplification. >> and steve, how important is that going to be to explain how you actually pay for that on the other end or enough to say, well, there is going to be growth, and so the growth will end up paying for essentially the spending that comes are from giving some of the tax cuts? >> well, i think that it is going to be incredibly important to explain and convince people that this is a revenue-neutral plan or the revenue-positive plan. so that is going to be a big part of selling the policy. ultimately, having it passed. >> we had a big discussion a moment ago with ed lazear, and formerly of the council of economic advisers of trump's comments on our air yesterday talk about potentially renegotiating some of the longer term u.s.t de debt.

and how should people interpret it, because the "times" writing about it today, and he is saying that e shgohe is going to fully massage the full credit and faith of the united states? >> well, i won't comment on that, and obviously, the government has to honor the debts. donald comments that we have too much debt, and the interest rates are going to go up, and this is going to be costing more money, and cutting the deficit, and cutting the amount that we borrow is very, very important to the economy. >> and if you could gather in a room bush 41, bush 43, paul ryan, jeff flake, charlie dent, all of the republicans that are stopping short of endorsing or even supporting him, and what would you say? what is the best argument? >> you think that the best argument is that we have to get everybody around the party, and we have to reach consensus, and we have to have donald trump as president.

i think that we need all of the help, and with e will be reaching out to people, and hopefully we will be getting the support throughout the party and from a lot of people who have not been a part of the party and they want to come into the process. >> steve muchin, mnuchin, than coming on, and thank you for coming on. >> thank you. steven mnuchin, the new trump finance yal adviser. [ 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.

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news alert, the president is going to speak in about five minutes we are told on the economy. when he approaches the lectern, we will take it live here on cnbc. meanwhile, the dow with modest gains down 24 points and the job s number is the big mover in terms of the sentiment, and 160 is below the expectations, and the lowest number since september, and a lot of tech earnings in there, and what a week. >> yes, indeed. the tale of two earnings, square down about 20%, and after the earnings report, and yelp is up 19% after its report, and both of the stocks, neither one kind of tearing it up in terms of the

performance, and doing particularly well, but it is just going to show that, boy, you can bounce off of the lows. >> yes, and for the second time in a couple of weeks, and kara swisher echoing what others have said about this being a pause moment in the tech innovation, and we will see what that brings. over to scott wapner and the half. xxx. all right. guys, thank you for and welcome to the halftime report, i'm scott wapner. we begin with the break news at this hour, and the president is expected to speak about the economy, and we will take you live to the brady briefing room when that event happens in a moments, and market s as are mo on the news of the jobs report. 160,000 jobs added which is a disap poi disappointment even as some of the internal reads were not so bad. john harwood live in washington as we are walking up to the president's comments to i da, and john, what do we expect the president's message to be? >> well, in part, the private sector job growth