good morning. working for a living. the july job's reports likely to set the tone for today's trading, but could it be a game changer for the fed. and earning central from tech names too fast food chains we're going to bring you a round up of the big movers. you're money, your vote. hillary clinton with a nine point lead over donald trump. it's friday august 5, 2016 and "world wide exchange" begins right now. ♪ ♪. >> good morning and welcome to "world wide exchange."

happy friday, i'm sara eisen along with don chew who is in for wilfred frost. >> he's back monday so my last day of the early shift for a while. >> you can go back to bed, but we will miss you in the morning. new music friday for you. producer usually nails it with the new music friday. going to be on the top of the list. >> this is where i learn all the new music is "world wide exchange." >> let's check out the markets this morning. u.s. equity futures after a quiet day yesterday where the s&p finished positive. minor move. maybe we'll break out of that pattern with dow futures up 24. s&p futures up three. nasdaq up 12. the big report is the job's report today. that's the big report. the earners have slowed to a crawl. this after we got decedent jobless claims yesterday. lower factory orders, but a better adp report pointing to

what could be a good report. >> there are those out there who believe the kind of market action we've been seeing has been this kind of fine tuning if you will jockeying positions, not in a large way, but ahead of what could be a very important jobs number. like you said, it's the scale tilter, right because you have that bad job's number for may, a decedent june, and july is going to be the one is hey the trend of good job growth in tack or turn in unemployment. >> let's show you the 10-year treasury yield report. little action. though note the 10-year yield is below 150. there has been buying of treasury that's pushed yields below 150. we'll see where they go after the report. >> now we're going to turn to european stocks. we're seeing a little bit of strength across the board. france up about half a percent.

ftse 100 in the uk up by .25. and the bi ibex up .90%. china off .20%. nigh quay in japan off -- basically flat. it's pretty much flats. the hang sang in hong kong up 1.5% as well. asia a bit of a mixed picture there. >> let's show you the broader market picture. starting with oil which has been a big mover. two days of rebound that sent oil back above 31. 41.74. it's important because earlier in the week we dropped below $40 a barrel. that 40 does seem to be a critical level. is it a floor, we will see firmly above 41. brebt is down half a percent as well. still over $44 a barrel as well.

let's show you the dollar move. ahead of the jobs report. the euro is stronger against the u.s. dollar. that is apparent there. the pound as well after mark carney big stimulus passage yesterday interest rate cut buying of corporate pound sunk the pound 1.5%. getting a bit of a rebound. then i would also point you to the dollar yen where we are seeing yen strength by a quarter of a percentage point. >> still welcome back to that 100 mark. >> not where the jaep woubank o would like to see it going. >> it's well off the lows we saw post-brexit. >> sure, not in the 120s, but way further from if 150 where we got the night of brexit. as for gold, there's the chart of gold. a bit of a bounce. not much. 130 this morning. has been going in the opposite

direction toch dollar. >> all those play in today's top story is the jobs report. three things to watch for what i call the gran daddy of. >> it is my favorite friday of the month. first the numbers unemployment is forecast to take down slightly at 4.8% with the u.s. expected to add 179,000 jobs last month. that's putsing the economy near full employment. the job growth is expected to remain stronger through most sectors. however, energy and trade sensitive manufacturing remain sensitive. the third thing to watch, wages, average hourly wages are forecast to raise 0.2%. and chief economist telling me all of this should be a green light for the fed to be normalizing rates again. still he doesn't see a hike happening until after the election. back over to you. >> that's going be the question.

thank you landon, the reaction we talked yesterday. is a very good jobs report a sign the fed can go ahead as they want. answered the question on "world wide exchange" and he said you better have -- it's better to have job growth and growth in the economy and then worry about the federal reserve. >> it's the whole data dependency thing. i would take it one step forward. i would want to know just how bullish a job report would have to be. i'm going to assume that job growth will continue, but how strong does it have to be? do we have to see a 275,000 job print or 300,000 job print. >> wages are very important too. we saw the biggest jump. if question continue to see wage growth that feeds into inflation. that's going to be important for the fed to see. >> yes, the prevailing theme for a lot of economists out there is

we have the benefit of low rates if you call them a benefit because there is no threat of inflation on the horizontal. >> we got the weaker number. perhaps they have to see more evidence. either way this one is more important than usual because may 11,000. june 287,000. we'll see if we can get a normal one. somewhere in between. beyond the jobs report we'll get international trade data at 8:30 a.m. eastern time. 3 this afternoon, june consumer yet. some stocks to watch today. rack space. had a market valuation of $3 million before the report of the sale. that's increased sharply with a nearly 20% move. >> fire eye planning to lay off workers. this as announced quarterly sales that missed own forecast

and company cut the full year outlook. shares got hammered there. >> cyber security used to be a hot thing. >> these companies are really getting punished for disappointing guidance. zynga weakout look. >> polo loco matching the street's estimate and the talk was rewarded to tune of 7%. >> another positive restaurant stock. >> true, there are some pockets of strength in what was overall a weaker quarter for restaurants. >> we'll stay on food or the lake thereof. let's talk about weight watchers. the big issue here membership numbers. added members in north america, but hurt by lower numbers. you can see the shares off p percentage 5% the online travel firm forecasting current earnings above street estimates.

those up early going. craft hiens a company you're familiar with. this is interesting you're posting better than expected earnings by the ongoing integration of both the craft and heinz brands. sales fell, but managed to match company dividends. the stock moved in early going. on video games act vision saw jump as its game attracted users. those shares up 1.25% in early trading. >> since you mentioned craft. same story as kellogg. deeper cost cut. that's a story that will offsets the weaker sells. >> coming up here on the show, stocks across the pond rising on earnings. we're going to wrap up all of those results for you. but first or twitter and facebook question today. who do you think would be happiest to see a strong jobs report today for the month of

july. fed chair johnny yellen, hillary clinton, investors or donald trump. obviously. >> i already vote. >> dewayne:. >> people who get the jobs and voted would be happiest. we stay on these stories for you. stay in we'll bring you the results later. you're watching "world wide exchange" on cnbc. before taking his team to state for the first time... gilman: go get it, marcus. go get it. ...coach gilman used his cash rewards credit card from bank of america to earn 1% cash back everywhere, every time. at places like the batting cages. ♪ [ crowd cheers ] 2% back at grocery stores and now at wholesale clubs. and 3% back on gas. which helped him give his players something extra. the cash rewards credit card from bank of america. more cash back for the things you buy most.

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welcome back to "world wide exchange." if you're just waking up or on your way to work, if you look at u.s. equity futures. take a look at dow jones. s&p futures up about 4. nasdaq up by about 9, 10 points. about a quarter of a percent if you will ahead of the jobs numbers. let's take a look at other parts of the markets. 10-year treasury note yield. 1.5% ahead of the jobs number. keep an eye on that. as for gold prices we'll take a look at that as well. we're seeing gold up 1368 there. the oil prices as well. wti crude off by about half of a percent. all of that with just a few hours a little more than a few hours before that big jobs number, sara, back over to you.

>> dom, meantime investors are exposing their risk to high asset. pulled $2.5 billion from junk bond funds in the past week. that's the largest withdraw since the massive selloff in september. posted 3.8 billion in outflows. the energy sector got hit the hardest. the worst showing. >> i'm curious what jim cramer would say about that. it's a leading indicator of what happens overall when you start to see weakness in that part of the riskier bond market. does that foretell about what is happening. >> you never know. >> more big earnings up today out of europe. this includes the royal bank of scotland posting massive loss in the first half of the year. set aside more cash to cover past litigation and conduct issues. our c faux addressed that

earlier in an interview. >> we need to continue to work through legacy issues. as soon as we can work through those, we'll be a good strong healthy bank. >> rbs shares are slumping. you can see off 4.3% in the early going. >> on a related note, all yanz posting a drop in the second quarter. substantial one time hit for the sale of one of the kbrieunits. the cfo saying the firm is on track to meet its targets. listen. >> i think we are doing very fine. we have adjusted the new business makes to the more difficult environment. we have changed products and adjusted it to the low yield environment and we are on a good track to deliver even in this as you called it toxic environment. >> as for shares of the insurer, they are under pressure. down almost 4% in european

trade. >> staying in europe, novo nordisk cutsing forecast to the lower end of the target range. also expects tough competition in the u.s. to pressure prices over all. those shares off about 8%. >> air bus closing the battle with boeing. had a total of 323 jets after cancellations. that compares with the 333 for u.s. rival boeing. still combined orders down 17% from the same period last year. >> that's your roundup on european movering coming up. your poll numbers on the race for the white house. >> first as we head to break, here's the national forecast from the weather channel jenn. >> good friday morning. we've got a track across the country that will again bring storms today. we'll watch parts of michigan and ohio and new york. one more night stay in the

northeast. heat and humidity continues to be on in the south. big soaking rain showers. the southwest see some down poors too. the monsoon is on here. into the afternoon and evening the chance for big rainmaking thunder storm there is. temperature wise the heat remains the big story. behind the front really nice air in this spread to the midwest and northeast right into the weekend. have a great weekend. "world wide exchange" continueds after this. ♪ we're drowning in information. where, in all of this, is the stuff that matters? the stakes are so high, your finances, your future.

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>> welcome back and good morning. let's get you up to speed on today's market. dow futures up 26. s&p futures up 3. nasdaq up 14. we have seen marginal moves in u.s. stocks this week. if you are keeping store, down week for the s&p and the dow less than half a percent. we'll see the reaction to the jobs report and if it changes anything. as for the currency market reaction of course very important at this hour, stronger japanese yen. it's a weaker dollar against the euro as well and even the pound. we'll see if the dollar stays week on the back of that jobs report that could be a tell on the market expectations for whether the federal reserve raises interest rates. if the dollar shoots up, maybe expectations goes higher. we see a strong report there. quickly let's show you oil. oil prices.

wti under some pressure down half a percent. as you can see elevated above 41 now. brent above 44. coming off of two days of gains for crude oil across the board. now to facebook and twitter question of the day. who would be the happiest to see a strong jobs report for the months of july. we ask you yellen, hillary clinton, investors, or donald trump. we're getting a lot of good ones. not the restaurant sector because they're facing a labor shortsage. the more jobs that are created. so we're getting good interesting responses. want to hear from you. >> we always love the feedback and commentary from our viewers and readers. staying on that theme, politi l politically at least. the republican party scrambling to unify as the poll numbers start to slide. tracie potts joins us now from washington live. the polls, can we trust them and

do the must remembers make a difference this rerl on before the debates even happen. >> reporter: they may not make a difference by november, but they do tell us the effect of the conventions. it's not just one poll. we have a couple of national polls in at least four battleground all showing the same thing. a slide for donald trump and a bump for hillary clinton. >> you want a president who stands for you're fired or one who stands for you're hired. >> reporter: as hillary clinton hammers away how donald trump does business. >> he has cheated contractors. i take that personally. >> reporter: several polls put her in the lead. plus significant leads in michigan and phil mickelsonflor trump is down double digits in florida and wisconsin. >> he is in trouble in wisconsin. i don't think he helped himself in his own party by picking a fight with the most popular republican politician. right now there's a lack of

enthusiasm for him. >> not backing house speaker paul ryan, but his running mate is. >> i say mike, you like him, yes, go ahead and do it. 100%. >> now another lawmaker has announced he won't vote for trump. >> it seems he's at times hellbent on losing a winnable election. >> trump is back where it all started, iowa. >> reporter: trump has complained the system is rigged and rigged against him. president obama was asked about that and called it ridiculous. >> i saw that in the news conference. meantime house speaker paul ryan says he sees no point in holding a vote on the tpp during a session of congress. in a radio interview, ryan said there aren't enough votes for the trade deal. both presidential candidates have bashed the ttpp, but the white house has voweds to make a

push to pass it. president obama did lay out his case when he thinks it should pass and republicans are actually backing it as well. >> it's interesting this is a topic that transcends party lines because you'll find people depending on what state, how much trade you actually do with some of these nations as a result in your particular state, that's going to be a big deal as well. certainly president obama weighing in. also weighing in yesterday during a press conference late yesterday touching on a broad range of topics. among them donald trump's claim the election will be rigged in favor of hillary clinton. >> of course the elections will not be rigged. what does that mean? that's ridiculous. that doesn't make any sense. i don't think anybody would take that seriously. >> the president does note the federal government does not run the election. it's a function carried out by states and local governments. now to the olympics, just hours before the opening s

ceremo ceremony, russia has been able to find out how many athletes can compete. cleared out 270 athletes meaning 100 competitors of the original team have been banned. russia narrowly avoided a complete ban following a government doping program. >> the message is clear, there is no place to hide for cheats and dopers can never feel safe anymore because we are showing examples and will follow up on each evolution there in scientific research and testing methods. >> the ioc had asked which russian athletes should be cleared after a view of their record. >> the gold, silver, and bronze were officially kick off tonight. i'm already excited.

i'm giddy about it. who will be the final host barer, maybe brazil. on guess where, nbc starting at 8:00 p.m. eastern time tonight sara. i'm be tuned in. >> giselle surely has a role, right? >> she does and she's a prominent nebraska of that nation's party. >> when we come back this morning's top stories including markets and wait and see mode. we'll talk expectations in the market straight ahead. you're watching cnbc first in business worldwide. what's it like to put your home in good hands? like having something fit you, just right, thank you randall. every stitch and seam of your home insurance, tailored to fit you and your budget. with unique features, like claim free rewards... ohh! customized home protection extra features all at an affordable price! i'm going to live in this.

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good morning. jobs in america. the biggest count down. a whole new kind of bounty hunter. why apple is offering big bucks to hackers today. plus, looking for a good parking spot. google map might have the solution. the detail in the top trending stories coming up. it's friday, august 5, 2016 and you're watching "world wide exchange" cnbc. >> good morning and welcome back to "world wide exchange" on cnbc. i'm sara eisen along with dom chu today.

new music friday. >> yes, i don't know this one, but it sounds familiar. >> it's flo rider. new track called zillion nare. >> let's get to global markets this morning. strength in the futures after what is appearing to be a down week. today's action could turn it around ahead of the jobs report. job futures up 29. s&p up 4. nasdaq up 14. early action in europe is also marginally positive. we've lost a little bit of earlier gains. the germany dax higher a bit. france is showing notable strength up half a percent. the ftse 100 in uk coming off where mark carney announced a bunch of options and buying of corporate bonds, government bonds. >> the stock markets reacted positively. and as for asia overnight.

let's show you quickly what happened. japan nikkei lost some ground. shanghai closed lower, but just barely. more strength in hong kong. that is that correcstock market fire. >> obviously a lot of stories at play here. as for the broader macro markets. let's check out oil. the last trade there down about half a ice brent 44.07. that's off .5% as well. the ten year note, we are seeing yields at 1.5%. 1.495. we have seen steady at least rates around that 1.5 mark. that range over the course of the past few trading days. so the dollar you can see here, weakness for the dollar across the board, although i wouldn't say by very much.

1.45 cost you to buy a euro. that's up. the pound 1.3145. and dollar yen holding right below that dollar level. gold of course ahead of the jobs number. 1368.90 the last trade there. today's top story, the july employment report. so here's the forecast. they say the economy is likely to have hadded 179,000 jobs last month. unemployment rate is deemed by falling a bit. joining us now is patrick o key, director of economic research. worked in the labor department during the reagan administration. when do we get to job reports that have a significant impact on the presidential election. >> we'll never get there in this presidential election. nobody is going to talk substance it appears.

the job report we get into the september october reports. at that point, people will begin to factor in what is the economy doing. the job report is a good way to measure in real terms or day-to-day terms what's going on. >> so starting with today's report, 179 is the consensus estimate. do you agree with that number. >> we're a little bit higher. atypical for us. we're looking for 190,000 jobs. 180,000 in the private sector. we may be a little higher in revisiting it. i think we have enthusiasm for the goods producing sector, extraction, manufacturing, we are looking at those as being stronger than they have been over the last months. >> now the employment rate is a number i want to focus on here. it has a lot of variables that go into it. it is seen by many as perhaps an indicator, a prodder indicator of the health beyond just the head line number.

what's you take on that rate? the 4.8%. is it reflective of what's happening in the job markets. >> the unemployment rate is probably the most misunderstood indicator. it's the count of people activelily looking for jobs in the last 30 days as a portion of the labor report. if we wanted to look at human resource utilization we should be asking ourselves how many people who are work eligible have jobs and employment rate. we calculate that. the unemployment rate tells us right now we're at full unemployment. if we took into account the decline in participation and had a participation adjusted unemployment rate it would be under 9% not under 5%. >> is that why the economy still feels sort of miserable, especially on jobs. >> absolutely. we all know someone who doesn't

have a job or is underployed. this unemployment rate because the fed uses it as an example of where the economy is, the unemployment rate gets undue attention. we should be looking at the share of the population that has jobs. >> as we talk about this idea that this economy overall may not feel like it's getting better because in fact it's not. if we do see any kind of a sign in the economy that's going to make us feel like things are getting better beyond the jobs number, what kind of growth do we have to see there in gdp in jobs over all, in production, in manufacturing? what's important to make this feel like it's coming along. >> i think we need sustained acceleration across the indicators. what this recovery has brought us is this stutter step performance where we get some good news, some indicators. bad on others. some are indifferent. what we really need is a sustained upward movement across the wide range. gdp is going to look good this

quarter. the jobs numbers are picking up a little bit, but i don't know how far they have to run. manufacturing, the goods producing sectors. we need them to step back up to the plate. >> do you predict all will be good enough to raise interest rates again in 2016. >> not before december. i see absolutely no prospect of the fed moving in september. they are too smart to step into the middle of this presidential kerfuffle and the data won't warrant it. they may try to do it september. there's really no need e. when we look at the federal funds rate we're looking at the wrong indicator. we should look at the reserves sitting in the banking system and ask ourselves why isn't there demand to put that money to work. >> that may be a big reason we're not seeing any inflation pick up. what kind of inflation would we need to see for the fed to talk about rate hikes.

>> i really can't answer that for you. the lechl of inflation we have right now we're flirting actually flirting with the concept of deflating is beyond the analytical skills of most economists. the economy looks like it's performing well, but a lot of signals tell us it's weak underneath. >> thank you so much. very valuable as always on this jobs day. patrick o key. some stocks to watch today, linked in posting better than expected earnings and sells. the company is in the process of being sold to microsoft. you see the shares not reacting to too much on that. wing stop beating the stock. full year guidance in consensus. the company ceo will join "squawk box" at 7:40 a.m. eastern time. an interview to watch there. revenues as well coming in

better than expected in its current quarter guidance is upbeat here. you can see the shares moving there. >> look at that chart. >> it's an interesting three-month chart there. up very large. 43%. >> other stocks to watch this morning, takata quarterly earnings and revenue. backing full year forecast saying it still plans to return to the black. the company is in the middle of a major global rehall and that is certainly weighed on shares. chevron reportedly selling assets in asia as it works to make cash. putting the value of the assets at $5 billion. check out shares of sing gentleman synga. future revenue. they got that. the shares are down 10%. >> it seems like an option.

calling all bug bounties here. apple announcing it's going to start paying hackers who find and report vulnerabilities in the products. hunting down the most severe bugs could get you $200,000 if you can felt the big bugs. microsoft, google, and facebook have similar programs in place. >> that's a good reward. >> yes, you can fish those things out for sure, sara. among today's top trending stories, google wants to help you find a parking spot. it's soon to be updated map's app could include a message about parking shortsages in your destination. i'm not a driver. >> i am. it works it could be extremely useful. i am here most of the time, sara, but every once in a while i have to go to new york city and i drive myself because i like driving and i drive around

blocks trying to find parking because it's hard to find a spot. >> and expensive. >> yes and that's why i don't live in new york city. that could be a big one. one i'm watching here is first daughter sascha obama handing a summer job. checking out kucustomers and bussing tables at nancy seafood strauntd. an interesting take on a summer job. >> what was your first summer job. >> i worked a a coffee shop. >> i worked at a golf course. >> you could have been just like sascha behind a counter taking orders. >> i don't think i wanted to work at a fish restaurant. >> anyway, amazon unveiling first prime air cargo jet. company has big plans to expand logistics and take over control of more deliveries. the plane is a boeing and has prime air printed on the

fuselage. amazon is releasing 40 jets to take more control of their deliveries. this is an interesting move by a company that has a lot of resources around it. lease jets and put logos on there. >> anything to get the passages. >> but not drones yet. >> they're trying. speaking of amazon, ceo just sold a million shares of his company. it's a routine sale for the executive. he has an annual predetermined schedule. shares of amazon are up so big that means his latest sell is worth more than $755 million. that's just a regular sort of automatic. >> it's so amazing it's his predetermined stock sale and he gets a power ball jackpot every time there's a sale of his stock, but congratulations. >> if you have a lot of stock and your sthok is doing well, it's a good thing. >> yes. today's must reads. check out the trading picture in

europe right now. mostly green across the contine continent. stay tuned. you're watching first in business, worldwide. you get used to sweaty odors in your car, you think it smells

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including postage and a digital scale. go to stamps.com/tv and never go to the post office again. welcome back to "world wide exchange." it is time for the must reads. mine is in the wall street journal. it has to do with the story that

got buried under all of the theatrics of the trump and clintons this week. the revelation by the journal reporting of the $400 million dollar payment in foreign currency that was sent to iran and was sent around the same time when the american prisoners were freed from iran. the obama administration said it was absolutely not a ransom and not when it comes to the deal making it had to do with a prior deal. here's what the what will street journal says, if mr. obama is right, he paid no ransom, how does he explain iran has taken three more americans hostage since the payment. an unhappy coincidence. even if that wasn't the intention or the obama administration didn't think they were doing that the bottom line is that's how it appears and that's certainly one opinion and that sets a dangerous precedent

when it comes to some of these nations like iran taken hostages and demanding more money. >> there's a reason why america does not negotiate with terrorists because it does put a bounty on people's heads and when you start paying out for that kind of thing, it's a huge deal. again, it's controversial right now, but it's a story worth kind of following along because it is one that's been interesting. >> it's been brought up on the campaign trail. something donald trump has pointed to this week as an example of what he calls bad foreign policy of president obama and secretary of state, hillary clinton. >> so my pick is also in the wall street journal. it's titled the $400 million legal, but not right. the author writing quote considering the government exists to serve and teach us, perhaps it would not be asking too much to demand an explanation. precisely what legislate interest of the u.s. was furthered by loading $400 million of cash in an unmarked

cargo plane and delivering to a state sponsor of terrorist. so a lot of questions we were just bringing up. the optics are not good. doesn't look good. the timing wasn't right. regardless of whether or not hypothetically secretary clinton had anything to do with it or anybody else in the administration, the timing of it and the way it looks doesn't look rights. so maybe more transparency about it beyond what they're saying could be in order. >> a story we highlighted and will be interesting to see if we hear more about it. we are approaching the top of the hour. the team is getting ready for "squawk box." becky quick is getting ready. good morning becky. >> this morning we are all about jobs. we got that all important jobs report coming out at 8:30. this is the number the fed has been watching so closely. they're keeping their eye on a lot of things happening around the globe. probably more so than they are admitting. the number here we've seen a better trend over the last

couple of months than the one we got two months ago, that was the scary one. last month we saw a return to jo jobs. that number is coming up at 8:30. have a slew of guests joining us. including vince rinehart. we're going to be talking some olympics. you're getting ready firefighor opening ceremonies, but this morning to talk about olympics and a lot of other issues, we'll be joined by the ceo of adidas. is it adidas or adidas. >> depends on what country you're in. it's a german company and german stock. >> we say adidas. it's a company i cover and i'm glad you have this interview becky because they're on fire right now. >> yes. >> in fact, even golf they've

been thinking of spinning off and getting rid of. we're going to talk to them about taylor made. given the improvement they've seen there. we've got that coming up and like i said, we're all about the jobs this morning. we're going to be talking about this all morning long so get ready. we'll see you in just a few minutes. >> it's going to be a great show. >> pregame jobs report. >> by the way, i should also mention 1.5% on the treasury. i still can't get used to the 10-year at that. we had mark grant on months and months ago. he said it was heading to 1.5%. i thought he was crazy at the time. he may be right. scott says 1%. it's certainly one to watch for sure, becky. thank you so much. stay tuned for "squawk box" for coverage of that all important jobs number. and speaking of the jobs number coming up on "world wide exchange," wells fargo chief

economist john sylvia weighs in on jobs in the fed and economy all over the world, but first as we head to break, check out oil prices this morning. you can see, they're down half a percent. now accelerating losses for all those major benchmarks. stay tuned. you're watching cnbc first in business worldwide. look at you. you're at the top of your game. you're unstoppable. nothing can throw you off track. wait, is that your car? uh oh! yeah, i saw that coming. that will throw you off track. you're looking at around ten grand in fines, legal fees, and increased insurance rates. let's try this again. smart move. because buzzed driving is drunk driving. gilman: go get it, marcus. go get it. ...coach gilman used his cash rewards credit card from bank of america to earn 1% cash back everywhere, every time.

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>> good morning and welcome back to "world wide exchange." we are counting you down to july jobs report. that is due at 8:30 a.m. eastern time. so may added 11,000 jobs. june added 287,000 jobs. that doesn't seem like a normal pattern of job creation. what do you expect for july, john? >> not normal at all, sara. we're looking at 167,000.

the manufacturing and nonmanufacturing employment components were a little bit weaker than expected so we're a little bit below the consensus on job growth and we think also the unemployment rate dips a bit. >> so as we talk about the overall picture for the jobs market, there are industries and there are parts of the market in terms of sectors that do better or do worse on a relative basis. we know about the weakness in the energy markets about metals and mining and that sort of thing. what would you like to see within the internals of the job support that would give you some sbal things are turning around and getting better for the overall economy. >> yes, excellent question. construction. will the construction employment gains be sustained and does that suggest something with respect to housing being a contributor to economic growth. what we would like to see is leisure and hospitality, health, education, those two sectors

seem to be secular growth sectors. consistent with good consumer spending growth. those are the two sickle indicators we're looking at. manufacturering is a little bit tricky. as i mentioned earlier the ism manufacturing survey fell below 50. suggests continued weakness in manufacturing for the united states. >> can you explain why we're seeing a steady pace of hiring. not the kind of averaging we were seeing last year and the year before, but still doing okay whiem businesses are pulling back on spending on capital equipment and plans. now for the third quarter in a row. i heard the same story, sara. a firm sees that it's expected final sales are pretty steady at around 2% and in the united states, domestic final sales are still hanging around 2%. there's not a lot of incentive to add new workers on net new equipment.

i think that phenomenon right now is firms are a little bit uncertain about the future. it is an election year. we're not quite sure if i add an employee today or piece or equipment today, what happens with the new rules and regulations for 2017 and i think they're pretty much settled into the 2% group. we've seen in for five years now. that's a strong incentive to stay where you are. >> let's wrap this up here. what's the most important thing that drives the economy in the second half of the year to the upside or the downside. what's going to be the biggest factor. >> it is still, dominic, the american consumer. that is the driving force for the consumption spending and the housing spending. really, dominic, it's the one thing keeping us out of recession right now. >> finally, are there any fed implications on today's job report? it's always important for the fed, but would it change your view of when we get a rate hike one way or the other?

i think sara if you get the consensus 180,000, it does not change our view. september is off the board. there's toomp uncertainty. you don't have the third quarter gdp number by the september meeting. you will have it later in the year. we think december is much more likely than september. >> we just heard that from patrick o key as well. thank you. the expect shows only a 30% chance right now of december. we'll see if that moves one way or the other. >> just a little bit left here. highlighted a few things to watch. s&p tech sector to watch overall. it has been a standout. >> the only one positive this week thanks to some better earnings. i'm be watching the u.s. dollar. this is the gut reaction for the jobs report. usually the 4 x market gets it right. a better jobs report, higher expectations that the fed raises interest rates.

the dollar is weakening. it's a six week low. >> now to "squawk box." that does it for us.

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post convention bump of donald trump. we have details on that straight ahead. the olympic games are kicking off tonight. nearly a third of russia's athletes have been banned. we're going to talk about it. it's august 5, 2016, "squawk box" begins right now. ♪ ♪

>> this is a good way to get things started on a friday morning. jobs report day. good morning everybody. welcome to "squawk box" on cnbc. i'm becky quick along with andrew sorkin. joe is off this week, but the jobs count dodown is on. we're going to get to the forecasts. 179,000 payrolls that would be in line with what we saw from adp earlier this week. the unemployment rate is expected to tick down to 4.8% from 4.9 pc. if you're watching hourly average wages it's something we've been keeping a close eye on. it's something that tells you if it's going to help workers. that's expected to rise by .20%. we'll have more job