the markets after the jobs report. steve, you've been watching treasuries. >> yeah, interesting yields have falling 1.18 on the two-year and 2.46. strong jobs report, markets went higher but yields did as well. >> why? >> the chance of a probability of a rate hike in march fell to 9%. >> all right. weak jobs though, it was strong. >> strong jobs. >> yeah, make sure you join us on monday. "squawk on the street" is next. ♪ a busy day in washington and on wall street. the president meets with the ceo forum and the january jobs number as you heard 227,000. good friday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer, david faber at the new york stock exchange. futures up on that strong jobs number. europe is green as well. bond yields falling a bit as wages rise a little less than expected 2.5 year on year as you just heard liesman and kernen

saying, jim, march fed hike expectations drop a bit to 12%. you still believe in three. >> i just think they ought to. i think our economy's really good and we ought to just get out of this emergency moment here because we're clearly not in emergency. we have a very good economy. and very good economy you have to be able to take rates up and take them up now. i think that the idea that they wait past march is fanciful. what happens if the economy really ignites? we've got a lot of things going right here. i think if the world gone right -- there was a conference call last night if you want to know where the economy is really going, you listened to that visa conference call. visa touches the world. that was remarkable. there's just everywhere in the world with the exception of brazil everyone in the world is doing better and united states is doing much better. i'll take visa versus that payroll and say raise rates. visa has real data. >> a lot of discussion about visa's margins hitting incredible levels. >> i think kelly's fantastic, but that was a monster call.

big dow stock and visa has a call better on the economy than anybody and that was an upbeat call. i got to tell you, i know they did get costco and that helped them, but if you want a read on the economy, go read that visa call. this visa call says tighten right now. tighten today. >> you're going to see a lot of split screens as you did a moment ago. that was gm's mary barra. a rule set to take effect this spring that would overhaul the retirement account advisory business, that news comes on a day where he will meet with ceos from the strategic and policy forum. attending the meeting today blackstone steven schwartzman, ibm, one notable absence of course is uber's travis kalanick who announced he's stepping down from the council last night sending a note to employees saying joining the group was not meant to be an endorsement of the president or his agenda, but

unfortunately it's been misinterpreted to be exactly that. people wonder if he is some sort of test case, jim, for ceos right now. >> well, look, he's in a particular bind. i see all these other people going and i say i cannot believe is there a day he does not meet with ceos? is there a day? jim stewart a column about whether he's running it right, but the ceos sure come down the moment he calls them. so one guy didn't come down. easy come, easy go. >> goldman set to open more than a percent higher. j.p. morgan the same on expectations of these executive orders today. >> incredible. took years this legislation took forever, cost a fortune, the banks have had to raise capital rates, capital rates, capital part of what the fed wanted and treasury wanted and at the same time had these rules maybe margins were bad. the stock should go up unfortunately because interest rates are not going up dodd/frank is not as important as rates going higher because that's the easy money.

>> right. banks by the way it's not as they've not been doing very well. over $6 billion last quarter. >> i give it to jamie dimon which is hard fought because these -- to do this kind of lending in this environment that we keep hearing about then i think they could do amazing lending, stock goes to 100. >> we're going to talk to gary cohn in about half an hour about that very topic. our eamon javers is outside the white house this morning and going to curtain raise. a busy day for the president, eamon, intelligence meeting, ceos, lunch with michael flynn before leaving for palm beach later today. >> he's planning on doing that before getting out of here and heading to florida where the weather is slightly better. he's expected to leave about 2:00 this afternoon. we'll see if he can cram that busy schedule in before then. but the president has already been tweeting this morning about this ceo meeting that we've all been talking about. here's what the president put out earlier today. he said meeting with biggest

business leaders this morning. good jobs are coming back to u.s. health care and tax bills are being crafted now. so the president clearly fired up for this meeting with a dozen or more of the top business executives in the country. we will be here keeping our eye out for their arrival today. you talked about travis kalanick pulling out of this ceo council, but we also saw elon musk putting out a statement explaining why he is here. some of these ceos, particularly west coast silicon valley types are under a lot of pressure not to be seen as cooperating with the trump administration in the wake of those executive orders last week on immigration. a number of companies putting out statements critical or expressing concerns about the immigration executive orders. and that's a point of tension that we could see in this meeting today, carl. you start to see some of those introductory get to know you meetings ending and now they start to get more into substance and that's where you can see people disagreeing with the president. we'll have to see how that goes

throughout the day. we expect a whole bunch of business leaders here today, and we'll bring them to you on cnbc, carl. >> thank you, eamon. by the way, guys, as far as musk's tweet goes, i understand those who object to my attending, but i believe at this time that engaging on critical issues will on balance serve the greater good. >> well, i think there are a lot of executives who want to go. i think there's a lot of executive who is are scared not to go. a lot of executives who don't want -- who fear. there are a lot of people who really fear. and i think we should make that point because that's what they say behind the scenes. they don't say it on air. but they do not want to run afoul this president. this president is viewed as being a very powerful person who can do a lot of damage if you disagree with him. >> yep. there's jamie dimon walking in, chairman and ceo of j.p. morgan. >> he's got to be thrilled about getting rid of regulation since they have more compliance people probably than they have loan officers. >> they have a lot of compliance people. and obviously a lot of capital.

nobody's talking about capital coming down, but they are talking about at least freeing up some of that money, i guess, that goes towards some compliance. >> when you say things positive about bankers, think back three or four years ago the reason why everyone wanted this regulation is because people felt these banks were about to go under. they still feel that. a lot of democrats say banks are about to go under. a lot of republicans say raise a lot of capital. there are some democrats realize they raise a lot of capital, but i felt the capital was the most important thing. and the reason why i worry about the european banks even today, when you're a joker bank and we have joker regulations, you have what they have in italy. we have in europe. >> your point is this narrative that some try to write we haven't learned our lessons. >> i want them to lend. i want them to give back some of the money. they have had to raise capital. the reason why those stocks have been not so good aside from the fact that we have a lot of regulation and there has been a lot of demand is because there

are compliance costs and the amount of capital they have to keep on the books is a little insane versus the rest of the world. now, the rest of the world did not do the right thing. >> no. although everybody's operating under the same capital babasel i requirements. >> yeah, j.p. morgan has about $880 billion in loans, some $2 trillion in assets. >> but you still can't -- they don't take a lot of risk because i think correctly they fear getting their knuckles wrapped by regulators. i think that's far more important than the actual regulation is how they're enforced. same way i think epa regulations under secretary pruitt will not be as enforced aggressively since he would seemingly hate his own organization. hate it. >> yes. sued it many times. >> well, i have a lot of ceos on who say, look, if you want to

know where we could really change, if you have an epa that doesn't make us have rules that are far more stringent than the rest of the world, then i think that we can start doing better. now, by the way, when i say that, doesn't mean i think the epa should be abolished. nixon started the clean water act. >> yes, he did. and clean air act. >> those were good. >> you jokingly the other day called it the energy protection administration. >> well, i mean, there's a lot of the energy companies tell me that secretary pruitt would be a very easy phone call. now, one of the things that's happened is a lot of these guys are -- they have their cell phones programmed with these guys numbers. this is very different from the previous administration where nobody had anybody's number. who knew those people? who in business knew any of the cabinet people? >> right. >> i watched rex tillerson -- i mean, rex tillerson, you could get rex tillerson on the phone. >> maybe some of the silicon valley guys. maybe. that seemed to be where the affections were strongest. >> there were some nice rapport there. but i mean, most of these guys,

i mean, look, i have their cell phones. they're like guys that come on the show all the time now they run the government. >> you have everybody's cell phone. >> does that mean they're good? no means they're on the show a lot. >> jobs number 227 beats 175. little wage pressure however average hourly earnings up just 3 cents, 2.5 on annualized basis. best construction jobs since march. and leisure hospitality wages 8.6, people are pointing to minimum wage. >> that's minimum wage that really did that and a lot of companies involved in the hospitality industry have complained about the minimum wage especially on the east and west coast. the good weather around the country really helped construction. the good weather around the country destroyed a lot of retail. anyone who had a lot of coats did badly, okay. if you had uggs, you have too many because of the weather. so that's construction. but government down.

i thought that was interesting. i think it's very important to watch the minimum wage because a lot of these companies complain to me that the minimum wage makes so they don't want to expand. the other side is they're rich so who are they to complain? like my great-great uncle, not my great-great-great grandfather lennon didn't like he was favored minimum wage except for the -- >> as far as the markets go it's going to be the worst week for the dow in several months. >> i know. >> we had a lot of companies guide lower this week, jim. under armour, amgen, even amazon quarter guidance we're going to get to in a bit. >> yeah, under armour is just part of the disaster that is apparel. you would think everyone decide in the country, you know what, we have enough clothes. we don't need anymore clothes, right? they looked at their closet and said we're not buying anymore clothes. we're not buying northface, not

buying hanes brand. maybe they're going commando. >> oh, lord, did you have to go there? >> i swear. >> maybe that's a thing now. >> commando? >> i don't know. >> that number is so atrocious. major retailer didn't put through an order. >> reminds me of that "seinfeld" with cramer and he went commando and he said all that's between you and me is that thin layer -- >> i have to tell you that number for hanes was so bad. it has to be some sort of secular trend against underwear. what do you think? >> i think it's possible. i would defer to you and your expertise when it comes to underwear. >> in this case you're the fashion magnet here. >> i got some hanes on right now. don't even try -- >> thank the lord for that. >> that's a transition, i do snapchat of commando. >> let's get to break on that note. when we come back we're going to keep a close eye on the white house, await the arrival of ceos from president trump's council. also ahead as we said, director of the national economic council

former goldman sachs c.o.o. gary cohn is going to join us live. take a look at the premarket as we chew on the jobs number, the president's meeting, all the earnings, amazon, chipotle, gopro and more. back in a minute. ar ig mipehour. ousands my. math on

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live shot of washington, d.c. we've seen mary barra of gm arrive along with jack welch formerly of general electric who will be in the meeting today. meanwhile, snapchat's parent company snap inc. officially

filing for its ipo. company's s1 last night ahead of a sale that could happen in march. reportedly seeking valuation between $20 billion and $25 billion looking to raise $3 billion. company's debut could be the largest since alibaba's more than two years ago. will be the biggest social media ipo since twitter. we learned a lot last night abo about spiigel, perhaps continuing losses for a while. >> i think their growth comes at a considerable expense. i think they're paying a lot for their growth. snapchat growth slowed 82% after instagram stories, which was the copycat, was launched. i think they're switching to a revenue per daily user. i get that. but the comments i got from people who are in the valley, so to speak, are, wow, they're spending a lot of money to be able to get that growth. >> right. now, they're going to be stressing the demographics of their audience. >> yeah. that's very important. >> they're going to be stressing the engagement that audience has

perhaps above metrics such as following how many daily or monthly average users you have. >> right. >> where they did sort of have slowing growth for a bit of time there, i think in the fourth quarter. >> uh-huh. >> and then got things going again. >> yeah. >> but they wanted to stay away from twitter's issues. >> i don't blame them. >> when it comes to that. >> they do have the right demo and they are a camera company trying to tell a good story. but at the same time i was like, wow, you're spending a lot of money. are you ready to come public? geez, are you really ready? i was not -- look, i was not blown away by the numbers that i saw. i was not blown away. and i know that, you know, when you go to younger people they are on snap as much as they're on facebook and that is going to be very exciting. but i was surprised. look, everybody slammed facebook after the quarter, right? and why did they slam facebook? one, they were spending a lot of money. if you have to write a check to google for $400 million for your hosting, why don't you have your

own data farm. >> $2 billion over years to your point in terms of the cloud. >> facebook has a different orientation, they do it themselves. >> some wonder whether the voting structure, ie rights, make it uninvestable or not. does that matter to you? >> you know, people play a game with this. they kind of look the other way say if it's going up, i want to be -- it's like a chip in the game. but i think this is one the corporate governance is not exactly what i want. >> yeah, but facebook, i mean, zuckerberg has full control, google guys have full control. we've seen this. by the way you can make the other argument that they're going to be much more long-term oriented. they're not going to care as much about shareholder basis. >> i like that. >> whims when it comes to quarterly numbers. >> and this is a much better story. >> and keep eye on longer term prize. >> do you think it's not a much better story than twitter. >> is it hard to be much better

story -- >> oh. you know, groupon was never really what you wanted it to be. >> that is a nasty -- >> zynga. >> okay, zynga, groupon, gopro and fitbit, you're dissing them worse than i did. >> a two of clubs, three of clubs, four -- >> that's a hand. >> a lot more on snap today and in weeks to come. when we come back the president's ceo council arriving at the white house. eamon javers tried to get a question, nothing yet but maybe when they come out. a lot more ahead including the opening bell. cramer's mad dash, don't go away. y gaat e yog?oh h brain

we got about eight minutes before we get that opening bell to wrap up trading for this week. it's time for a little bit of a mad dash before that opening bell. where are you dashing? >> a lot of people, a lot of clowns, i meant really people, who've been bashing chipotle ahead of this quarter saying it was going to be another bad quarter. i got to tell you something, ls and hard tongue totally i delivered. you're talking major reorganization, bought a lot of stock under 400. i believe that as i've been saying 18 months after the last virus, that was december 7, 2015, you're going to see upward ramp, they may be ahead of schedule. this was a very, very good quarter, chipotle. they're back. >> really? that's what i was going to ask you. >> they're back in some stores. now, jack would tell me, jim, please don't get ahead of the story. but i just saw a lot of green shoots. and i really think it's very good. why were you doing your hair? did you see the whole piece about you in the times today? >> no. i don't believe there was anything about me.

>> about pena. >> oh, pena. >> yeah. times made a correction, they have a picture of you instead of pena. great article. did you know his head was crushed by a mountain in "game of thrones". >> that was him? >> yeah, actor from -- >> he was the one? >> yeah. >> no kidding. oh, he was great. >> stop worrying about your hair. and chipotle is good quarter and stop shorting chipotle. >> okay, got it. >> read the piece immediately. >> will do. >> during the break. >> we've got an opening bell coming up about seven minutes from now. been watching arrivals at the white house as ceos get ready to meet with president trump. we'll have it all when we come back.

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you're watching cnbc "squawk on the street" live from the financial capital of the world. the opening bell in just under four minutes as we watch the white house. more arrivals of ceos, the president's strategic policy forum, indra nooyi walking in a few moments ago. there's expectations among some that ceos will walk in with a wish list and somehow get it. is that an overstatement? >> i have to tell you, i don't -- yes. because these ceos are a little different from others, but i had the international paper ceo last

night on, mark sutton, and he said he asked directly of the president, listen, we need to lighten up on the epa. epa has to lighten up on the international paper. president said you know what i think we're going to get results. so the yes are being heard. >> i just said that. >> i wanted you to know i heard you. >> thank you. >> what do they have? doug mcmillan, what's he going to ask? more customers. mr. president, do you have more customers? >> well, i mean -- >> that's a joke. >> doug mcmillan, there's the key in terms of border tax adjustment and tax reform and walmart and what will walmart do and how much influence will it have over certain republican senators from arkansas when it gets to the senate, if and when it does, and includes border tax adjustment. >> i think that's really key. probably the most important there today. most important person. i do think by the way jim

mcinerney, former ceo of boeing, the contract with iran what's going to go on with that. dan yergen, expert on energy, you know the president wants to destroy opec. and anybody who would know how to do it would be dan yergen. you've got some interesting people. >> you do, but also there's no tech here at all sd. >> there's no new economy at all. >> what we spend most of our time on this show talking about because it's the most exciting part of the u.s. economy, it is by far the largest growth part of the economy, not to mention the stock market, there's nobody. >> and today the headline is canada reaching out to bring operations of some of those companies, especially out west to their country. >> look, those are companies that i think there's a great gulf between this administration and what's going on in tech in terms of job destruction. >> musk is the only one, to be fair, he's the only one there. >> cosgrove is a great guy to figure out cost in health care,

cleveland clinic. the last book was great you could save fortunes if you listen to him. >> how did that joint venture with thernos go for cleveland clinic? that never got off the ground, did it? >> wilbur ross just walked in who will be the point man on any renegotiation of nafta which looks to be accelerated at this point. >> oh, yeah. there i think should be more currencies the focus. i'm looking to see who hasn't been on our network and there's a couple guys haven't come on. most have been on. i mean, this is -- this is when i look at these names i think, wow, i mean, this is just classic american business. but you're right, not classic technology businesses. marc benioff is not on this list. >> no, he's not. tim cook, reed hastings, not on this list. >> do you think benioff from "game of thrones" is more likely to be there than benioff from salesforce? >> what's the relationship there? >> not related at all. remember, benioff is related to a former chairman of goldman

sachs. >> right. right. >> let's get to the opening bell. s&p at the bottom of your screen. at the big board this morning kendall royalty partners and oil and gas limited partnership celebrating its ipo at the nasdaq henry schein provider of medical and dental products for the ada foundation, give kids a smile. [ bell ringing ] >> guest on "mad money" they've done a lot of things to be able to make free dental. they're the largest supplier of -- thank you, david, for introducing me to henry schein. >> i introduced you, yes, years ago. >> on my show. >> and you've done very well with stan bergman and that stock has done very well. >> yes, been an amazing stock and will continue to be so. wow, we got some restaurant stocks moving up. i'm wondering if that's in sympathy with chipotle. i'm looking at --

>> sales rise for the first time in five quarters. >> yeah. >> comps down 4.8. >> i never abandoned it, just so you know. >> we know. >> i never abandoned chipotle. >> you look at the two-year stack say it takes 18 months for people to forget. >> 18 months. remember, it's healthy, not necessarily diet. a lot of people confuse to be fresh does not mean it's not going to be 1,000 calories. it's fresh, okay. organic. but not necessarily not fattening. all right. >> okay. >> thank you. >> you're welcome. >> dow's up a quick 109 points. >> yeah. amazon of course not one of the winners this morning. down about the same. about 3.5%, 4%. let us talk about amazon. 20% revenue growth. earnings per -- they've earned more money than i've seen in a long time. >> but that's not what you want. >> no. >> that's like tuna with good taste, right? we want tuna to taste good, which means we want aggressive revenues. the revenues did not come through. that said i think this company

is doing so much and they were hurt by the dollar. the american consumer didn't spend that much this quarter. but i have to tell you that you're going to get your chance on monday when the rest of the momentum guys get out of this thing who are looking at a double top, by the way. i earned double top. >> head & shoulders or double top? >> double top. >> okay. >> a double top. >> double top chart. i'm saying the momentum guys default to the chart, but they ought to read the quarter. the problem is they're so opaque. the actual conference calls are such a drag. they end up talking about like, you know, the movies. >> well, they're spending a lot of money on content. >> yeah, people are worried about that. how much is facebook spend? zero. >> well, facebook has an incredible business model. but amazon, also to be fair, has started businesses they threw some money at as in aws which is now dominant. >> right. fbl. >> and they are now spending enormous amounts on artificial intelligence in the form of alexa and what that will become. >> but no one cared about that on the conference call. they care more about the man on

"high castle". >> they do. and spending and you pointed out they came in perhaps below the midpoint of what had been anticipated from the analysts who follow the company in terms of revenue growth. but no company out there can innovate its scale the way amazon does. >> nobody. this is what -- amazon ceo says tens of millions of new paid members joined prime. tens of millions. how do we nail that one down? >> i know. it's so annoying. why won't they just give us a number on prime membership? >> i was waiting for someone to say -- >> why is this a secret? >> i was waiting for someone to say, listen, guys, in "high castle 3" do we find out gruben furor becomes furor? >> aws sales up 7. >> right. >> for all those on the sale side who warned about operating net in the quarter with the stock down 4%, do they deserve cheering or not? >> well, i just think, yeah, look, the guidance was operating income expected to be $250

million down from $1.1 billion. people don't like that guidance. amazon doesn't really give a damn what you think. they spent a fortune in india where they made you give up the big bills. go listen to what proctor said that. of course apple had good india numbers. but i think india is a conoundrm and amazon spent a fortune at not a good time to spend a fortune. it was ill advised to move into india then. >> they don't care. >> they take a much longer term view than the average hedge fund -- >> always direct people. i thought it was interesting "the wall street journal" also chose to but i direct people to the 1997 letter and first annual report. there it was. 20 years ago. >> i don't care. >> i'm about securing future cash flows. i am not about near-term. >> marshall sam injugerard, rig? i don't care. that's their watch word. by the way they've got some movies. they've got some things they're

so proud of. we want to hear about machine learning. but they don't want to go to machine learning. they want to talk about the movies. >> all right. but believe me, they will be in and we all will be talking about machine learning and alexa and a.i. they have 1,000 people working on a.i. at that company. >> computers beat players at texas hold 'em, a game a lot different than chess. >> how about wing stop, they have alexa, give me atomic wings and send me atomic wings. >> carl is making a point about advances in artificial intelligence, jim, which in chess it's all on the board. even with go with aib go it's all there, but in texas hold 'em you got the flop and you don't know what the cards are. the ability of a.i. to win at texas hold 'em and to improve is a moment that should not be underappreciated for those of us who are waiting for the machines to take over. >> what's texas hold 'em per share, my friend? >> i'm just saying a.i. is moving along fast. and we can have meetings today and the president can have a lot

of meetings with ceos of very important companies and hope that they'll be job growth. but as a.i. continues to advance along its way it is going to replace a lot of people. >> that's why i do not want to sell amazon. i do not want to sell it. there is just too much engagement with amazon throughout your life. and i know that they just -- at one point somebody really tries to get it what the numbers are. and the cfo is like are you kidding me, like we're really going to go into that stuff? it is a funny conference call. it's everything you don't need to know. it is really much better to ask about china, how's china, we're very pleased with china. okay. that's good. how about amazon web services. we're very pleased with amazon web services. okay. that's good. it was really rigorous. >> fireye, jim, i think it's all-time low if not extremely close. >> that's when your executive chairman and cfo resign at the same time that's a suboptimal situation. distinctly suboptimal. put fireye in the basket, david. >> really?

with who? >> with the fella the gopro fella. >> oh, yeah. nick wooden. >> you expecting me to use some sort of moniker for him? >> no, i missed the name. i was focused on some other things. >> runs that company like a warehouse should come in and fix that company. >> it's -- yeah, we're talking gopro of course which also did not have an optimal quarter in your words. let's get over to rick santelli now check in on the bond pits and what's going on at the cme group in chicago. take it away, rick. >> thank you, david. you know, it's peter boockvar, friend of cnbc, pointed out today and it seems to really underscore the pervasive view on the number. headline looked pretty good. people were excited. labor force participation rate moved higher even though it pushed the real unemployment rate higher because people are coming into the workforce again. and that was something that seemed to be a conventional

wisdom that group of 94 million people weren't going to be a pool of potential labor. but it seems that maybe that needs some reconsideration. on the week twos right now are down four basis points. fives are down seven. tens are down four. interesting that 30s are actually up a basis point on the week. look at an intraday of twos, tens, dollar and bund yields, you can see they all responded exactly the same. they gave up some ground. you know, there's another thing about big numbers at trading floor especially week of fed meetings said they call it the hurdle mentality, you jump over hurdles, the fed meeting and jobs report created a dynamic that inhibits maybe strategies being put in the market. we're now over the hurdle so we could get maybe a cleaner view of how these markets are going to go into the weekend. and finally, the two last charts i consider more macro but pay attention, november 1st euro versus dollar looks like it wants to continue to break out to the upside. you see the dynamic in reverse with the dollar versus the yen.

both are weak dollar of course. but the yen not quite as developed. keep an eye on current levels very close to breaking significant levels. david, jim, carl, back to you. >> all right. thank you very much, rick santelli. dow hit 20k briefly once again. let's get to bob pisani. bob. >> good morning, guys. well, futures moved up rather nicely on the non-farm report being better than expected. but remember we had average hourly earnings on the weak side. so dollar weaker just heard over there. and of course yields are a bit lower here. let's take a look at what's going on here. important thing banks are up today. you might think my heavens why are banks up on weaker yield, but remember they're talking dodd/frank revision, couple of other things changing fiduciary rule which all might help the banks see them moving to the upside today. techs are doing well, micron, intel, google, facebook all on the upside. materials a little on the weaker side. some consumer staples are up. clorox is up, thank you, jim, that's up nicely today. so the important thing is we're seeing nice moves in the banks. a lot of people are anticipating some rules around dodd/frank and

about tax reform. but as we've been talking all week this may or may not happen in the way people are thinking. guggenheim had a big report out. again, one of several companies this week having reports out on the tax reform they said our recent conversations with current and former congressional policymakers lead us to believe that tax reform may be potentially less expansive or more delayed versus the current market expectations. and i think a lot of people are coming to that conclusion. they feel there may be some multiple compression around the banks in the next couple months, think there could be as much as a 15% downside for the banks if the expected moves don't come through here. talking about snapchat of course all throughout the day an important thing about their ipo is not so much the voting rights, it's the size of the company. so you're dealing with a potentially $23 billion market cap. that's right where it was in the middle. what's amazing to me is just the small number of employees, 1,800 employees. that might seem like a lot, but we're dealing with a $23 billion

market cap company. the important thing is most of the other big companies much, much larger number of employees. even software companies like electronic arts 10,000 employees. so big difference there. right now the dow up 105 points. guys, back to you. >> all right, bob, thanks so much. when we come back, president trump's ceo council arriving at the white house. of course we'll go there live. we'll talk to the director of the national economic council, former goldman sachs c.o.o. gary cohn next. "squawk on the street" is still ahead. ne r he ae from earjones. beg taut? tseinan regul gy f ououther andalk,n surevhi cle th. ah.ouout.

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as president trump continues his outreach with corporate executives at the white house, new signs today on the strength of the u.s. economy. labor department says 227,000 jobs were added in january. unemployment rate at 4.8%. joining us to talk about that and this meeting at the white house today is the director of the national economic council former goldman sachs c.o.o. gary cohn. gary, we've not had a chance to congratulate you on the new job. so congratulations.

welcome back. >> thank you. thank you very much. >> this meeting you're about to go into -- we'll talk about jobs in a moment, but investors spent the last couple months absorbing what they see as pro growth policies, some say at the same time protectionist policies. what do you say to those who feel like it's stepping on the gas and the brakes at the same time? >> look, carl, we're very much into a pro growth strategy here. as you mentioned we have a ceo group coming to the white house today. this is our fourth or fifth, or maybe even our sixth meeting with ceos here at the white house. we've had a bunch of different groups in all talking about growing the economy, creating jobs, what we can do to help promote economic growth, what we can do to help promote jobs and prosperity here in the united states. so everything we're doing is trying to create jobs and trying to create growth here in the economy. >> gary, jim cramer. i too offer you congratulations. great to talk to you. >> hey, jim, thank you very much. >> absolutely.

gary, you have been fantastic in talking about what technology does to jobs and how even our cell phone it takes away jobs. >> yeah. >> about how it keeps wages down. we saw wage number today still not a lot of growth. are you actively involved with the president talking about how, you know what, even though we want manufacturing jobs back we have to worry about technology and what to do with the people who are actually put out of work by our fabulous technology. >> jim, we're spending enormous amount of time talking about that. that has been a very interesting topic for the first couple weeks in the white house. we really have to think about what our workforce is going to look like in 2020, 2030, 2050. our workforce and our labor force is going to look different than it did in the 1920s, 1930s and 1950s. manufacturing's going to be different. the role of automation, the role of robotics, role of technology is going to be completely different. we're thinking about that. we're thinking about the impact. we're thinking about the education process. how we teach people, how we

educate people, how we get people ready to be actively involved in the workforce is going to change and change dramatically and it's happening right now. >> all right. the administration has been tough on some of the american auto companies, obviously had mark fields in, mary barra, talk about gm and whether gm is taking jobs away. how do you convince the big german and japanese carmakers that it's not really a great idea to open in mexico and that it would be better if they opened in south carolina, in georgia, in texas if they really want access to the u.s. market? >> well, look, there's a lot of different ways for us to attract business to the united states. all of the ceo groups that have come in have basically told us three things, and they've all been consistent what they've told us. they've told it to us in this order. the first thing hurting business growth is regulatory policy. the second thing hurting business growth is tax policy. and the third thing hurting business growth is our infrastructure. so we have to attack those three things. ironically that is our agenda.

we're going to go after our regulatory policy. we're going to lower regulatory burdens in the united states. we're going to make it easier for businesses to build businesses, hire people, build factories. number two, we've got to make our tax policy more competitively advantageous for companies here in the united states. we have high taxes relative to the rest of the world. that's a disadvantage for u.s. companies. we have a 35% corporate tax rate, the oecd average is about 23%. gdp weighted it's about 26%. we can't be that much higher than the rest of the world. we've got to get competitive. we're committed to do that. last thing is we've got to build a better infrastructure. we've got to make getting raw materials to factories and getting finished goods out of factories much more efficient for our companies here to be competitive in the world. and we're committed to do that. >> gary, it's david faber. you mentioned of course tax reform which you said is a key component of the overall growth agenda. specific to that, will the administration support a border tax adjustment as part of any

tax reform package? >> david, at this point we are exploring every and all options to get our u.s. corporate tax rate down to the lowest possible level we can get it. we are open to every option. this is a very tough problem in getting our taxes down. we've got a lot of expenditures here in this country. we want to preserve many of our expenditures so we have to deal with the revenue side of the equation. we're open to everything, we're not excluding everything. but i'm not telling you we're including that. it is one of the options that's on the table. you should not take it from me that that's the option we're going with, but i'm not going to exclude that option. we are making every opportunity available to us to solve this problem. >> all right. well, where are we then in terms of where you think tax reform's going to go on the calendar, let's just say, at this point in terms of the administration's input and what happens? you say border tax adjustment no decision is yet. so many important components of

this that have to take place and yet you've got to get a senate onboard that might have senators from states where they have huge retailers who have a lot of influence. this is going to be a mess, isn't it, gary? can you really see a straight line here to getting legislation let's call it before, i don't know, the fall? >> so, david, look, we are working aggressively. and we're putting enormous amount of time and energy into tax reform. simultaneous to that we're working on health care. we're working on repeal and replace. and replace is as important as repeal and obamacare. we're working on tax policy simultaneously and we're working on infrastructure projects as well. we are working on all of these things simultaneously. we're working as fast as we can. we also have to do a budget and we have many other things that we're working on simultaneously. we are going to get there. we are spending as much time as we can possibly spend on these things and i'm optimistic we'll get to the right conclusion. >> gary, capital markets, investors, everyone's trying to

adapt to the new tempo of this administration so when sean spicer comes out and floats a 20% tariff to pay for a wall, do you have involvement in that? how much are you a part of these things that seem to pop out of nowhere? >> we've got a lot of balls up in the air. we've come out of the blocks fast. we're trying to get as much done as we can. we're throwing a lot of ideas around. and, look, we're going to get to the right place. the one thing i know for sure is we're going to get to the right place. >> why do you know that? >> because i'm confident we're going to get to the right place. we've got a lot of smart people working on the topics, working on the issues, we're exploring all the options and we'll get to the right place. >> we've had you on for years and we've known you as someone who when you want something done it gets done. we've talked a lot about that at the culture of goldman. obviously this is a different setup where you are now. can you talk a little bit about what you've learned so far operating in this context? >> well, look, the last two

weeks or three weeks have been absolutely fascinating for me. coming to washington, coming to the white house, getting involved in the transition, it's been an extraordinary learning experience for me. personally, i've learned a lot. it is a different culture than running a financial services company. and, look, every day i learn more. every day i get smarter, but every day i feel like we as a team in the white house are getting better and better at what we're doing. so i continue to be very optimistic. >> gary, during the campaign the president was not that sympathetic to big banks. and yet now we see dodd/frank completely revisited and take a lot of the teeth out of it, the suitability issues for the labor department. what happened between campaign trump and president trump? and what have you done to be able to say, you know what, if we want to get this economy moving, small business, big business, we have to be easier on the large banks, not tougher?

>> i think president trump is very realistic about growing the economy. he's heard from over 50 ceos that regulatory issues are where what's slowing them down. he's asked us to start attacking the regulatory issues that we think are slowing down economic growth. and one by one we will pick off these issues. and when we come to him with an idea and we explain to him the issue and we explain to him why it is hindering something or why it is not helping the american consumer, he is more than happy to get involved. and he is giving us the latitude to fix what we think is wrong. >> all right. but let's give you a specific example. i had mark sutton on last night, ceo of great american paper, great company, he said the epa is too tough on us, most pipeline companies i have come on say the epa will not let us do what we want. the oil companies say we want to drill, put people to work, the epa says no. how do you balance the idea of i know you care tremendously about the environment because i know you outside of work, and i also know you care about jobs. what happens in those meetings?

does the president say let's get epa in here and start giving them the business? what goes on? >> look, the president says let's identify the specific problems. let's just not talk in generalityigeneral issues. let's remember the president is a businessman. businessmen attack specific problems. you come in and talk to the president about a problem, you can't say, look, the problem is big and nondescript. you have to tell him what the descript and he will work with you. >> i know you've spoken and said a couple things but we're still trying to understand details in terms of changing the conservativeship, changing the sweep, changing basically what's going on with fannie and freddie, what do you have planned here? and are we actually going to see those plans soon? >> so the gse reform is

definitely on our agenda. treasury secretary designee steve mnuchin has been spending a lot of time working on that. once he gets approved and confirmed, steve will be taking that on as one of his early priorities. so we definitely have some plans in place to work on that. and hopefully he gets approved as soon as possible. >> gary, will the president appoint a chair to the cea? >> i think he has every intention of doing that. >> and finally, you gave a quote to the journal on the fiduciary rule. you said we think it's a bad rule. it's like putting only healthy food on the menu because then healthy food tastes good but still shouldn't eat it because you might die younger, can you explain that? >> i don't recall that quote, but okay. look, what i'm saying is look the fiduciary rule was completely misintended.

so what they thought they were trying to do is protect investors in their retirement accounts, but by protecting investors they highly limited their choices. i don't think you protect investors by limiting choigces. when you're trying to encourage younger and younger people to invest for a longer period of time, you need to give them the proper choices that will allow them to accumulate wealth for a long period of time. don't limit people's choices. give them the proper choices to accumulate wealth. >> gary, we know you got a meeting to get to. we appreciate you coming on as always. hope to see you a lot. thanks so much. >> thank you. thank you for all your time. >> gary cohn of course at the white house for us today. "mad money" tonight, jim, what are you going to watch? >> we got clorox on fire. people wrote these stocks off said bond market equivalents. no, when you have a really good ceo using social media and reinventing a brand, you can make a lot of money. benno dorer is a modern ceo who understands you use facebook, which by the way people thought was going to be down when

snapchat came out. huh-uh. au contraire, pena, i think clorox will be a terrific interview. wow, gary cohn is different. >> we're all getting used to it, jim. >> yeah. >> market actually held in as you spoke. up about 117 right now. back above 20k. we'll see you tonight. >> wow, what a week. >> falcons or patriots? >> no, sorry, patriots. it's brady-adelman, can't defend it, they're going to shut down julio as much as i love him. >> jim, have a great night. more from washington as ceos from the president's council meet at the white house. don't go away. on upon a

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♪ good friday morning. welcome back to "squawk on the street." i'm carl quintanilla with sara eisen, david faber at the new york stock exchange. a lot going on on this friday. dow 20k once again. obviously earnings, this meeting of ceos at the white house, a lot to watch as dow's up about half a percent. >> our roadmap for the hour begins with trump ceo summit. the president meeting with the

likes of jamie dimon and elon musk today. we'll bring you the very latest from washington as we have it. >> it is jobs day. goldman sachs chief economist will join us to talk about the jobs number and the trump economy. >> and then we'll break it all down with pulitzer prize winning columnist jim stewart on president trump's management style in the white house. kind of a controversial new call on that today. >> rick santelli's got ism services. hey, rick. >> a litany of news, carl. all right, let's start at the top. our january ism non-manufacturing service sector, 56.5, that fits in nicely with the last spat of numbers. definitely on the high side of history. dig deeper on the employment, 54.7 popped from 52.7. if you look at new orders, 58.6 was a drop from 60.7. now let's look at december factory orders. they were up 1.3%, that's a pretty solid number, but consider we had up 2.8 as close as october. that was of course december.

if we look at final december durable goods, down 0.5. that was maybe as expected and it follows minus 0.4. the last time we had a positive number was up 5% and that was in october. and finally, what i consider the most important number when we look at the durable goods is capital goods orders non-defense ex aircraft capital spending barometer by business it was up 0.7. 0.7 is the number on that. that follows an unrevised 0.8. and also look at november it was as high as 1.5. we need this number juiced up if we're going to get a more juiced up economy. back to you. >> thank you very much, rick. dow's up 127 on all of that. meanwhile, andrew ross sorken at the white house for this meeting between the president and his strategic policy council. good morning, andrew. >> good morning to you, carl. ceos from all over the country descending on washington, d.c. this morning and the white house in particular to talk about some of the big issues, taxes,

regulations, infrastructure, women in the workforce on the agenda. lots of meetings taking place even before this meeting this morning. wilbur ross seen with indra nooyi this morning along with ivanka trump and nancy pelosi at the four seasons hotel. we took video of number of ceos coming into the white house this morning. i chatted up a little bit with the ceo of walmart, doug mcmillan, about what was upcoming. of course one of the big issues not on the agenda but we imagine is going to come up during this meeting is that of immigration, the executive order, of course the one person missing from this meeting dropping out of the meeting travis kalanick. you guys have been talking about it all morning. and also some of the criticism that some of the ceos have taken from some of their customers and clients for participating in this. elon musk one of those people. and i want to read you a statement that he put out just last night about what he plans to say today. he says i and others will express our objections to the recent executive order on immigration, offer suggestions

for policy dr for changes to the policy. also says he understands the perspective of those who object to my attending this meeting but i believe at this time engaging on critical issues will on balance serve the greater good. so we will be here. we plan to interview a number of the ceos coming out of this meeting this afternoon including steve schwarzman, jack welch and others. we'll bring those to you when the meeting closes. >> andrew, certain column this week at the beginning of the week called frantic phoning among ceos how to address the trump. said up until this past weekend ceos have largely cheered trump's plans. how much of that agenda is going to be on the table today? and how much has changed after this weekend because of the immigration ban? >> i think for the most part those major issues, taxes, regulation, infrastructure, are the big topics that will be talked about today. and i think there still is a

sense of optimism among this ceo community in how they work with the white house. having said that i think that the executive order and this immigration issue is a real one. mike allen reporting this morning, by the way in his new newsletter, that somebody from the homeland security is going to be at this meeting try to allay some of the concerns about the immigration ban and what it means. but we're also hearing reports of course companies like apple and facebook, microsoft and others who by the way won't be at this meeting, are thinking about employing people and new jobs elsewhere. there was a report this morning in "the washington post" about whether they would be creating jobs in places like dublin and vancouver. so there are some mixed messages and we will see once the meeting is over sort of how that conversation has manifested itself. >> you named some names of ceos that are going to be there. just in terms of the theater of it all, andrew, what will you be watching? the body language, who sits where, who will you be watching

based on what their company needs out of this meeting? >> i think what's so interesting is everybody here is coming with a different objective. so if you're walmart, the import tax for example in terms of how that works itself out or not is important. gm, mary barra, same story, but if you're ginny rometty the immigration situation might be an issue and schwarzman an interesting situation himself has most of his business in china. there's lots of different competing interests in many ways and trying to really define and understand how they're going to approach and try to approach it together will be what we're looking for. >> and carl, indra nooyi is there. pepsico is a company that operates in 200 different countries around the world selling their products. >> well, immelt made some interesting comments this week, andrew, about comparing say ge

to walmart when it comes to some of these proposals. i mean very different interests depending on your ratio of imports-to-exports. >> and that's going to be the interesting part about how that debate unfolds at the table with president trump, which is to say there has been some conversation among them privately going into the meeting. so how coordinated are they in their efforts, or do you actually see divide, if you will? meaning one group saying we want to approach this way and another group saying we want to approach this way and perhaps a third group saying they want to approach this way and how mr. donald trump, president trump, reacts to that. it's going to be an interesting meeting. of course we should note wilbur ross will be in that meeting, gary cohn who was just on the broadcast, i think he's standing right over there, will also be in that meeting and will be coming out after. so hopefully we'll get some reaction from all of them. >> all familiar faces and names to us, andrew. glad you're there. andrew ross sorkin, keep us posted from the white house.

let's also bruing in eamon javes who is also there. how does this meeting fit in today with i would say business focused agenda today and this week? >> yeah, that's right, sara. well, we're expecting the president to sign an executive order and a presidential memorandum on financial services issues later in the day. that comes around noon. but today they've been bringing the ceos in here on the side door of the white house, we're over on 17th street. this is where a lot of them have been coming in. take a look at some of the pictures we've gotten this morning. it's been elon musk, jamie dimon, mary barra, a whole host of ceos coming through this gate. and to andrew's point, he talked about the breakfast this morning, this hasn't been just one event. a lot of focus on this meeting here. there's been pregame events, and we're expecting maybe some post game events for these ceos to talk to each other. politico reporting --

>> all right. you were listening to eamon javers. we lost his mike there. of course as he was talking not just about this meeting but meetings that have already taken place this morning, breakfasts and the like, guys in terms of preparation for almost pregame before they see the president. let's bring in our own ylan mui for more. >> i don't think it's an kpent the president is expected to sign an executive order rolling back some dodd/frank regulations, rolling back the fiduciary role possibly later today. but i've been talking to many officials, former white house officials both republican and democratic administrations. what they've been telling me this morning is that this is the start, potential start of a very, very long process. you know, most of these rules were crafted and written within government agencies and that

process, that rule making process and rule rewriting process can take a very long time. it's one of the reasons why the dodd/frank legislation is still not fully implemented six years after it was signed. there are some 20% of dodd/frank rules that have not yet been proposed. so you can see just from implementation process all this legislation how long it can be undoing it could take even longer. >> ylan, how much depends on, a, what happens out of the white house versus what yellen, cordray, other executives at other agencies decide to do or not do? >> yeah, so this executive order as we've been told just orders the financial regulators to review the rules currently on the books. now, some of the heads of those agencies such as janet yellen, such as richard cordray over at the cfpb may not take a kind eye to changing the enforcement or changing the way they approach some of these statutes.

now, however those people will not be here after a certain period of time. both of them come up for -- in 2018. so the new administration will be free to put in whoever they want and will be able to sort of direct those agencies even if those agencies such as the cfpb still exists, they'll be able to direct them with their own person at the head. >> ylan, thank you. ylan mui in washington for us. did want to alert our viewers to some headlines involving macy's. this actually was a story in the news yesterday to be fair "new york post," "the wall street journal" now reporting hudson bay has made a takeover approach to macy's, they're citing sources. hudson bay you may recall owns saks, lord & taylor, i believe, did a purchase there ended up being quite a good one based on the real estate value of the

underlying retailers they purchased, macy's as our viewers may know also has been under pressure from certain shareholders to try to realize or monetize some of the value of its own realize. the stock i believe is halted, i don't think it's news pending. i think it just may be an imbalance. we will alert you when it reopens. but, again, the headlines the journal citing sources saying that talks are in early stages. of course they may not lead to a deal, but hudson bay apparently has approached macy's, which has been under pressure from starboard almost a 1% shareholder, a number of other significant shareholders there as well, sara. >> yeah. >> who obviously it's been under a great deal of pressure from weak retail and weak retail environment. if you go back and look at starboard's presentations, the last of which was some time ago though it's focused much more on trying to realize in some way through various structures the value of some of their real estate. not necessarily even the flagship store on 34th street. >> talk about a flagship store, as you mentioned hudson bay is

sitting on a very valuable piece of real estate at 50th street and fifth avenue, saks fifth avenue. but otherwise it's been struggling. this is a stock, david, down 37%, hudson bay that is last three months struggling with weakness in retail. they made that acquisition to try to get to where the consumer was going, though they have struggled with traffic and promotions like so many other retailers. the other piece of context that's interesting here, carl, is that terry lundgren, the ceo of macy's is stepping down in a few weeks as planned to hand the reigns to his successor. >> a lot of discussion about that decision they made to close 100 stores, stores that were not just losing money but not earning their cost of capital even though they were still generating cash. which citi this week took as perhaps a turning point in how retail will respond to what jim likes to call the overstoring of america. >> yeah. it's funny when you hear about a potential deal like this. and again, the reports are early stages. we'll see.

the debt potentially would have to be taken on in a deal like this and of course are you going to be dealing with tax reform in which the deductibility of interest is something you can no longer do. again, on tax reform, if you get border tax adjustment, what is that going to mean for the retailers? so you do wonder if you are an executive here trying to put something together how much you need to look into the future. perhaps the not too distant future to try to understand values. i'm told macy's may just about be ready to reopen. i'm not sure. indications are -- i don't have them actually at this point. so the shares are still halted. >> any word on the price? >> no. i mean, this is not my reporting. so i only have what the headlines you're reading there. >> dow jones indication was 32.50 to 34.50, last trade 32.21. so we'll keep an eye on it. if we get a resumption of trade you want to stick around and see if -- okay. i guess -- >> we've got it open. yeah, at 32.83.

up about 7% right now. $2.43. so macy's has reopened again. it wasn't news pending. it was an imbalance on that story. which i have a sense is going to be a while until we sort of get a better idea as to the likelihood of a potential transaction. >> investors are excited popping more than 6%. >> yep. >> when we come back we'll talk to goldman sachs ceo economist jan hatzus. dow is back above 20k. no longer the worst week in three months, but one of the weakest of the year so far. back in a moment. whether its cofw'mostnneus.or b.

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stocks are higher here after a pretty strong january jobs number, the headline number, and news of executive orders around financial deregulation lifting financial stocks. a few moments ago we spoke with gary cohn, president trump's national economic council director. take a listen. >> president trump is very realistic about growing the economy. he's heard from over 50 ceos that regulatory issues are what's slowing them down. he has asked us to start attacking the regulatory issues that we think are slowing down economic growth. and one by one we will pick off these issues. and when we come to him with the idea and we explain to him the issue and we explain to him why it is hindering something or why it is not helping the american consumer, he is more than happy to get involved.

>> all of this as president trump's ceo meeting progresses in d.c. analyzing the market impact of all of this and the road ahead, we're joined by john of oppenheimer asset management, and portfolio manager of global allocation at blackrock, welcome to you both, gentlemen. >> thank you. >> john, on the financial deregulation moves we're expecting today, how much better is this administration making life for the big banks? >> well, i think substantially so looking out ahead 12, 18 months perhaps. it will take a while for e everything, but looks like the market is discounting that right away today with the pop in financials. but we've got to think from just our firm, the investment we've had to make in attorneys, consultants and in compliance has been rather extraordinary over the last few years. and out of the norm. nothing wrong with regulation, but over regulation sometimes

actually keeps you from helping clients that you'd like to be able to help. >> russ, what's your level of conviction here on the financials trade, which is again leading this market higher today? >> well, sara, we're still long financials in global allocation fund. i think there are a couple things going on. the regulatory side, certainly the anticipation of a lighter regulatory touch as john mentioned is part of it. but the other part is the rate environment. and the movement in banks actually started before the election. and a large part of that was a steepening in the yield curve, more benign rate environment, some pick up in loan growth. i think for the financial trade to continue, you want to also pay attention to rates and what's happening in the real economy, not just what's coming out of washington. >> i definitely agree with that. >> so let's do that today. because there's an interesting story going on in rates and in stocks, john. the bond market appears disappointed with today's jobs number. yields are moving down. the stock market appears to be

looking at it as a rosy picture. where's the discrepancy and what does that tell you? >> i think what the bond market is telling us is essentially it looks like less clarity in terms of the fed's direction near-term, but for the stock market it will take it either way. if the growth is modest but still growth, stock market likes that. if it's at a more rapid pace, the stock market would ideally like that more. i think the big thing is watching growth, job growth remains consistent in terms of the trend. and in terms of wages, wages do not show a worrisome indication related to the strength of wages. there's plenty of slack still remaining. >> russ, what's your take on the jobs report? d you agree that this shows labor market's not tight enough to get the kind of wage growth that we'd like to see and therefore there's more room for president trump and his team to deliver on promised job growth? >> i think in one word, benign.

it was a benign print. you had strong labor -- growth in the labor market. that's positive for the economy. it's positive for consumers. but you're not yet seeing those wage pressures build. and as john said, that takes some of the pressure off of the fed. it takes a little bit of the pressure off of the dollar. and, again, the market has done very well in an environment of modest growth and a dovish fed. and if this number suggests a continuation of that trend, that's probably a positive for stocks. >> as we're talking, guys, the president with some headlines on the wires. we hope to see this tape in a few minutes, but says we'll follow up with tax and health care bill soon, very happy about the jobs number. we'll discuss dodd/frank and banking industry with his business council members, of course the strategic policy council meeting happening right now. russ, as far as the fed goes, 12-month average is running, what, 195? i mean some could point to the fact that's much higher than

their own view of what would tighten the labor market hence why are they not behind the curve already? >> well, i think there are a couple questions there. now, the reason i think they're willing to take a more wait and see approach is you're not yet seeing that build up in wage pressures that would normally accompany a labor market that strong. one of the key numbers part of labor participation today participation kicked higher. while the unemployment rate is very low, think you'd start to get some wage pressures, is there enough slack from people that left the workforce that maybe tempted back into it to give wage pressure constrained, it's one of the reasons the fed may take a wait and see approach. >> just on the politics and headlines, john, that carl just read off, there was some trepidation in the early part of the week that the initial focus and priority from the white house would be on immigration and protectionist policies. here he is again meeting with ceos, talking about deregulation and tax reform and rolling back dodd/frank. do you think that's part of the

rally here. and do you breathe a sigh of relief going forward that that's still at the top of the agenda? >> i think most certainly and i think he's working with the easiest or easier things to work on first and the second thing will be the most sensitive both from a political and geopolitical agenda. the other thing i think related to this we were talking about is the lucky thing is the dollar is weaker. if you look at the dxy, it's down 2.32% year-to-date, last 12 months it's down 3.33%. it's down against all 18 of 22 emerging market currencies. >> i get that helps earnings. >> it does. >> but the strong dollar has been a better growth prospect on the u.s. economy. what does that tell us? >> it certainly has, sara, but i think it's also some of the strength that was in the dollar pulled back a little bit. and some of that i think is a really healthy sign. it shows that the foreign buyers

may be pulling back a little bit. and also investors in general look like they're diversifying into the international markets which keeps pressure from the dollar getting too strong. >> and, sara, i was going to make a point. >> a lot to talk about. final word, russ. >> a very good month in january, part of the reason is some of that pressure that held down at the end of 2016 that comes off a little bit and we've seen better performance out of those countries so far year-to-date. >> yeah, emerging markets liking this jobs report today. guys, thank you. >> thank you. >> with the dow up 131 points, david. >> yeah, well, coming up we're going to bring you the latest from the president's meeting with industry leaders. and later "new york times" pulitzer prize winning columnist jim stewart is going to join us to talk about trump's management style. more "squawk on the street" next. onisla tffwor rerdsan u u

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cafrtuoanheto werllectt come dieyou oco earlier this morning white house national economic council director gary cohn discussed whether or not the trump administration will support a border adjustment tax as part of the tax reform package now at least being, well, being debated

within the halls of congress. >> we are exploring every and all option to get our u.s. corporate tax rate down to the lowest possible level we can get it. we are open to every option. this is a very tough problem in getting our taxes down. we've got a lot of expenditures here in this country. we want to preserve many of our expenditures so we have to deal with the revenue side of the equation. we're open to everything. we're not excluding everything, but i'm not telling you we're including that. it is one of the options that's on the table. you should not take it from me that that's the option we're going with. but i'm not going to exclude that option. we are making every opportunity available to us to solve this problem. >> i think we can get that they're not excluding it. but they're not including it. but they're not excluding it. >> indeed. we tried to pin him down on how we are supposed to prioritize

balloons, options. his message in the end is it's just a full court press, essentially, right? >> yeah. >> it's a surge of sorts. >> it's dereg, taxes and infrastructure, which we don't really hear about that often. was interesting to hear him mention infrastructure in terms of something that the business leaders have also discussed with the administration as a key priority for them to try to get growth moving at a faster pace. >> john harwood in washington of course watching all of this on a busy day. john, it seems to us this has been a big attempt by cohn and others to redirect the conversation from immigration and trade back to taxes and deregulation. >> well, there's no question about that, carl. the administration initially took a series of actions and offered a series of statements, executive orders designed to please a particular part of their base with immigration especially, but the pro business part of their base, which is a different set of people with a different set of interests had

been unsettled by that. now they want to have their concerns dealt with too. now the republican congress has been taking steps in that direction on deregulation. yesterday the president signed an executive order and now you've got gary cohn and others at the white house, with the president, hosting these executives and trying to encourage them that their issues are front and center too. want to bring us up-to-date on one other step that the treasury has just announced. and that is sanctions on iranian individuals and entities involved in their ballistic missile program. this is part of the on notice that michael flynn, the national security advisor, had brought out earlier in the week. and president trump this morning said iran is playing with fire with its ballistic missiles test. they've sanctioned a number of individuals and firms connected with procurement. they noted in their release that

the procurement network for the ballistic missile program extends to china, also involved entities connected to hezbollah, which is a terror group that the united states has been concerned about. so important distinction here. this is not concerning the iranian nuclear deal. that remains in place. and these are sanctions for their behavior outside of that deal. we're going to get more information from treasury officials later this morning, guys. >> all right. john, we're going to have a lot more from you later on today. a lot to talk about. john harwood in washington. meantime, it's about 10:32 on the east coast. let's get a news update with sue herera. hi, sue. >> hi, carl. good morning everyone. here's your news update this hour. paris officials say a man who tried to attack french soldiers was carrying two machetes and shouted god is great in arabic, one man shot him five times gravely wounding him, another soldier was slightly injured. james mattis meeting with prime

minister shinzo abe in tokyo. he reaffirmed the trump administration's strong commitment to japan. the u.s. has 50,000 troops stationed in that country. >> i want there to be no misunderstandings from washington that we stand firmly 100% shoulder-to-shoulder with you and the japanese people, mr. prime minister. >> nordstrom is parting ways with ivanka trump saying it will stop selling her clothing and accessories. the company says the decision is based on sales performance and not politics. it did not say whether that decision was permanent. you are up-to-date. that's the news update this hour. carl, back down to you. >> all right, sue herera, thank you very much. meantime we're expecting some tape from this meeting of ceos at the white house. report indicates they were brought into the state dining room a few moments ago, greeting business leaders ivanka trump along with the vice president, steve bannon, chief of staff

reince priebus, gary cohn who we spoke to a few moments ago. >> it will be interesting to see what the ceos play. the tradition fall playbook has been they sit around the table, introduce themselves, talk about how many jobs they've created in america or are planning to create in america. how long their history has been in america. how much innovation has been in america. and then we don't get to hear some of the contentious stuff on policies. >> but the things of course are what we don't hear. >> right. >> because then the press leaves and then perhaps the real conversation begins, which would be much more interesting -- would be much more interesting to hear from them. >> especially now. >> and whether or not they have actually challenging conversations at all because as you say it's very much -- we're getting very accustom to this corpography, the president speaks, everyone introduces themselves as you say we've created this many jobs or that many, we invest in this, we invest in that and we move on and the press leaves. >> i think what's different now is you've had this very controversial immigration order come out where, i mean, there

were some power in numbers there with ceos speaking out with employees sending memos opposing it you wonder how that feeds through not to mention the fact uber ceo travis kalanick had to step off of that council and not attend this meeting today. >> eamon javers, we're going to see this tape in a few seconds here, your thoughts as we await it. >> yeah, carl, one thing to watch for we're told the president talks about, the jobs number here. which is obviously a big focus of ours this morning. and here's the president. >> thank you everybody for coming this morning. this is a really world class group. i wanted to thank and congratulate things you have done, as usual. called me up the day after the election and wanted -- [ inaudible ] he said i'd like to put together a group of world class leaders. and that's what he's done. so good job, steve.

couple things happened this morning. 227,000 jobs we're very happy about that. i think it's going to continue bigly. we're bringing back jobs. we're bringing down your taxes. we're getting rid of your regulations. and i think it's going to be some really very exciting times ahead. we're doing it, we're going to be coming up with a tax bill very soon, a health care bill even sooner. and it's really working. cleveland clinic helping us a lot with the veterans, and appreciate that, toby. you've been amazing and ike and all of our friends. we really appreciate it. one of the things i heard this morning in watching the news was that amazingly it's never happened before that politics has become a much bigger subject than the super bowl, this is usually super bowl territory and now they're saying that the politics is more interesting to

people. so that's good. i see we have larry here. where is larry? larry did a great job for me. managed a lot of my money and i have to tell you he got me great returns last year. and then they go crazy these very smart people that made money, why don't you get other people to run the economy. i said, no, we have to get the right people. and the people that voted for me understand that. and that's what they want. when i campaigned for office i promised the american people i would get the country's best and brightest, and we have that. wilbur is representing us as secretary. you're going to be so great secretary of commerce. wilbur ross, carl icahn calls up i heard you got wilbur. i've never heard him called we just know wilbur. we have great jack welch. legendary jack welch. we appreciate it. we're looking forward in a

little while in the upcoming few moments to discuss all of the things that you think we can do to bring back our jobs to get taxes lower than we're even cutting them. and to do what we have to do in terms of regulation, we have some of the bankers here. there's nobody better to tell me about dodd/frank than jamie, so you're going to tell me about it. we expect to be cutting a lot out of dodd/frank. i have so many friends of mine have nice businesses can't borrow any money because the banks just won't let them borrow because of the rules and regulations and dodd/frank. so we'll be talking about that. in terms of the banking industry. with that i want to introduce somebody i've known for a long time. he's done a fantastic job. and we're thinking of -- i think we'll start maybe on a monthly basis and then go to quarterly

basis because a monthly basis sounds like a lot, but we really want your input. we have the biggest, the brightest in the world in this country and we have the manufacturing group which is worldwide as you know great companies represented. but these are the biggest and the best minds in this country. and i really appreciate you being here. and i want to thank steve, maybe you'll say a few words. >> sure. well, i'd like to just start out and thank everybody for being here. the purpose of this group isn't for general discussion. which is okay. but the real purpose is to get things done. to advise the government and areas where we can do things a lot better as a country for all americans. and debottleneck some things we have a full agenda unlike other

meetings that happen of this type, we're going to cover tax relief, women in the workplace, infrastructure and education. each of those areas we'll get suggestions, ways to make things happen, happen faster to improve the country. and anybody can say anything else they want. but it's really important that we mobilize the nongovernmental sector and also we do it on a bipartisan basis. apparently a first in washington, and everybody on the group was selected because they're terrific. because they have domain expertise, because they want the country to do better. and we had no criteria. and as it works out we have all

kinds of different from different backgrounds and political persuasions and if we can make things work right, that's the way the country's supposed to work. so it's a big sacrifice for the people who are here to spend their time. so put those things aside to focus on this not just for me but there's prep work that goes into any successful meeting means these people who attended and taken the time to care about their country. so that's the spirit in which we're approaching things. >> thank you. i want to go around the room, but before we do that i just want to say that so many people have called, friends of mine in big business, and they wanted to be on the committee and i call steve, i say, steve, can we get so and so -- no. said what do you mean no?

it's a big business, massive business -- you know. but everyone said, well, steve, how about this one? no, he's a corporate raider. these people don't want to be sitting with corporate raiders. but he's been very, very selective and we'll be putting a couple more but he's been very selective. i thought we might go around the room, mary and i met last week, we had a fantastic meeting. we had ford there. we had a lot of companies. we had some great companies. fiat chrysler, sergio. and i will tell you i learned a lot about the automobile business. i thought i knew a lot, but they are being so stymied, so restricted with regulation and so many other reasons. they're pouring back into the country already, if you look at mark was telling us what they're doing with ford and bill ford too, a lot of jobs are going to be coming back into ohio and

michigan and pennsylvania and all of the places that really have been hurt so badly. so maybe we can start with mary. we'll just go around the room real fast so that everybody pretty much everybody knows each other, but it would be nice to see. mary barra, chairman and ceo of general motors. >> doug mcmillan, walmart. >> larry fink, blackrock. >> jim mcinerney, the old bone guy. >> kevin, stanford university. >> elon musk, spacex. [ inaudible ] >> dan yergen, ihs market. >> jack welch. >> some day maybe, i hope. >> ginny rometty, ibm. >> indra nooyi, pepsico.

>> thank you very much. thank you, folks. thank you, press. >> that is the president in the state dining room flanked by steve schwarzman,in dra nooyi of pepsico alongside gary cohn. second day in a row president mentioned wilbur ross by name just calling him wilbur, like madonna on a one-name basis. but clearly, andrew ross sorkin at the white house, our corporate america has not had the president's ear quite like this in a long time. >> i'll tell you, the thing that's so remarkable is just seeing the comfort level that the president has with so many of these folks and the comfort level they have with him. before some of the images you saw were broadcast, just the paling around, the back slapping, the shaking of hands between a variety of people all of whom to some degree are old

friends. you heard him make the comment about blackrock thanking larry fink for the returns that he got as an investor there. and then also seeing he had a conversation at one point before the meeting began standing with ginny rometty of ibm for a bit of time. also worth mentioning ivanka trump is in the room. the women's issues are a huge issue for her, women in the workforce. i believe dina powell is also in the room that i saw there. and then to see just so many of them in what -- if you go back and think to yourself about some of the images that we saw when president obama was in office and there were executives and ceos who would go visit with him, especially early on when he first moved into the white house, there was a different sense. it was almost a sense of nervousness, of anxiety among a lot of them. this just has a very different

feel, if you will, to it. >> hey, andrew, i don't think anything summarizes that point you made any better than hearing president trump saying there are bankers here, nobody better to tell me about dodd/frank than jamie dimon who is in that room of j.p. morgan and just how striking the difference is between then and now. of course we were in the midst of the financial crisis then, but wow, what a change, andrew. >> it's a change of leadership. it is true, by the way, and i think you just suggested and pointed it out. it's a change of time though. we were in the midst of a financial crisis. the level of anger amid the public at wall street and at corporate america at that time was as strong as it ever was and has diminished to some degree though still lingers today. but clearly this is a man in president trump who is a businessman and a business leader and has spent his career working with so many of these

people one way or the other. one thing that's worth noting there were some people, i don't want to say they were on the outs, but, you know, that don't know him nearly as well. and there was, you know -- it's like going to a cocktail party, if you will. there are certain people you know and gravitate to the people you know and gravitate to the people you don't know. there's a little bit of that going on here too this morning. >> it is as you're talking, andrew, it's fascinating to watch the president work the room as we are lucky enough to have the pool spray capture all of this. you might notice for a large period of the time jared kushner right by the president's side even as he talks to ginny rometty there in blue from ibm. so the optics of all this just as important as the policy that may or may not come out of it. andrew, our thanks to you. we'll talk to you in a little while. of course the jobs number the president mentioned specifically in that pool spray. and joining us at post nine to talk about that jan hatzius,

chief economist at goldman sachs. great to have you. >> good to be back. >> we ask gary cohn the balance between the protectionism we've heard and obviously pro growth strategies they're pushing today, how are investors supposed to reconcile the two? >> well, i think it's still an open question to some degree. i mean we've looked at both the fiscal policies, which are generally growth supportive, and the potential drag from trade and immigration policies which are potentially more negative for the supply side. i mean, our view in 2017 and 2018 is that growth is probably going to be a little better than we thought prior to the election because we think that the fiscal policies are probably going to outwei outweigh. the other point i think to note is that there was already a decent amount of momentum going into the fall and into the first

quarter basically because of the improvement in financial conditions that you saw through 2016. so that's definitely been showing up in the numbers. >> on the jobs number, 227,000 jobs added in the month of january versus 157,000 in december. is that a trump bump in confidence? do you give him credit? >> i think there's more momentum in the economy and i think it predates the election. i think we have seen it was a convincingly strong jobs number both in the establishment survey and in the household survey if you adjust for some of the distortions from changes in the population controls. at the same time the amount of slack in the economy it looks a little bigger than it did prior to the report. i wouldn't want to overstate that, as you know, these things jump around quite a lot. but generally it was, you know, strong growth but somewhat less inflationary report. >> is that why we're not seeing the stronger hiring momentum

translate into bigger wage gains? we've asked that a number of times, but here we go again amid this discussion of a labor market that, you know, is at full employment and yet we're not seeing wage growth. >> well, we are. we are seeing wage growth. i mean, the wagesmean, wages ar 2 3/4 year on year. they were growing about 1.5% a year ago, so we are seeing acceleration. i do think it's two steps forward, one step back, but i wouldn't want to take this one number as saying that we are not making any progress. we are making progress, i think. >> as far as the fed goes, why are expectations from march so low? should they be that low? >> we took down our expectations to a probability of a hike down to 15%, basically because of the slightly higher unemployment rate, slightly higher u-6 rate, the weaker wage number, and then also, if you look at the statement, there really wasn't a

hint there. now, i wouldn't rule out a hike in march, because janet yellen could still send a signal at humphrey/hawkins or at some other opportunity, but it just seems the probabilities have fallen. >> what's your growth outlook for this year and next? and do you share some of the investors' optimism that we are going to see a big bump as a result of some of these policies that he's talking about and some of the orders he's signing already on deregulation? >> we have an acceleration from 2016 to 2017 come from the 1.5% range that we were in a year ago to 2.25% or so, both this year and next year, so there is an acceleration. i do think we'll see declines in unemployment, declines in labor markets, like growth above trend, and some of that is fiscal policy, but a lot of that is also the pickup that was already basically in the pipeline because of the changes in financial conditions. >> we also -- i was just going to mention on jobs one more --

we also learned that 24.4% of unemployed americans have been out of work longer than six months. does trump have the policies to address this when he talks so much about jobs? >> well, i think, you know, this is a number that has been trending down. it's still quite high, basically because the hiring rates that we've seen through this recovery have been lower than in past recoveries. some of this is structural, but i think some of it is also still the legacy of the deep doldrum that we had in 2008-2009. are there policies that could address that? you know, retraining, obviously, would be something that could address it. i think a lot of it, though, is going to be basically continuing to see job growth, continuing to see growth above the long-term trend of the economy, and thereby, ultimately pushing more people into employment. so, i think we are on the right

track, but there's still some ways to go on long-term unemployment. >> today's number definitely was a step in that direction, you could argue. jan, so good to have you. thank you so much. >> thank you. >> keep an eye this market rally. dow's up 160. all groups in the s&p higher, except for consumer discretionary. banks are the standout once again, up nearly 2%. we'll be right back. s eto tyoaraor dame ttin..abrovo ani ametter he ent'o genizeme s tit beca man asa wafte ortee y.

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some of the world's riskiest markets are generating massive returns this year, but are they worth your money and the risk? find out at tradingnation.cnbc.com. more "squawk on the street" coming up.

amazingly, it's never happened before, that politics has become a much bigger subject than the super bowl. this is usually super bowl territory, and now they're saying that the politics is more interesting to people, so that's good. >> that, of course, was president trump at his meeting

under way right now with major ceos, including steve schwartzman, mary barra next to him from general motors, jamie dimon and more. as the nation's president first term, is donald trump making the grade? "the new york times" says it's off to a rocky start at best. pulitzer prize-winning columnist jim stewart is joining me on the floor. jim, curious to hear your reaction as we watch these pictures inside the trump meeting. we're waiting for more headlines, but clearly, they've got an agenda and they're talking about issues that matters to their companies. >> yeah, well, i was writing this week about management issues, and this is exactly what i think the managerial class wants to see, an orderly, thorough, consultive decision-making process, as opposed to the disaster that was the immigration rollout. no matter how, what you feel about the merits of the immigration proposal, the execution was horrible. so a lot of investors, a lot of wall street people i talk to are

suddenly nervous, like oh, my god, can he deliver tax reform? can he deliver a rescission to dodd/frank, as opposed to saying he's going to do it? and i think gathering a team, encouraging different points of view, listening, and then making a decision is exactly what a management 101 class would tell you to do. >> although could be a little bit more fence after this weekend. a number of companies and some in that room spoke out about the immigration order that was signed. a lot of them have business that could get hit, and of course, worry about their employees and the family members of their employees. i just wonder what the tone of these discussions going forward is going to be. >> well, this crowd is not in favor of trump's immigration policy and is definitely not in favor of his trade restrictions, but trump wasn't doing that for this crowd. he was doing that for another part of his constituency, and now he's going to get to the red meat with this group, which is what they want. number one, corporate tax reform. number two, individual tax reform as well.

and number three, some spending, infrastructure improvements, investments in the future. they're totally on board that. so i don't think they'll waste a lot of time on the immigration at this point. that mess has already happened, and you know, that train has left the station. >> do want to address the column today because it's a good one. you look at the management style, sort of regardless of substance -- >> exactly. >> -- although that has to factor in. this is my favorite line -- "thus far, the trump administration is a textbook case of how not to run a complex organization like the executive branch." this is what he campaigned on. he was a ceo. he managed a complex business. why do you draw that conclusion? >> well, it makes me wonder just how effective a manager he's been. but number one, let me give you two examples. again, management 101. he did not consult the department heads, the cabinet officers in charge of immigration, the secretary of defense, the head of homeland security. he didn't listen to them. first of all, even if you're not going to listen, you go through the motions, because one, you want the information, you want the expert advice, and you want

them to feel a part of the process so they then invest in the execution. he did none of that. finally, some state department people objected. his spokesman comes out and says, well then quit. you want to encourage different points of view. you want to encourage dissent. that doesn't mean you agree with him in the end, but you want to hear that. you want them to feel they participated, even if you don't go along with them, so they execute. he alienated everyone, and i hope he learned from that experience and will correct it going forward. >> on the flip side, he did keep a lot of his campaign promises and has been. >> yes, but he seems to have elevated speed over accuracy and thoroughness, and speed can be very important, but this is only two weeks. he's in there for 208 weeks. he has a little time to get it right. >> hard to believe it's been only two. >> hard to believe. >> jim, thank you, as always, on the floor with me. jim stewart, "the new york times." dow's up 160. over to you, carl, for "squawk alley." >> sara, thank you very much. good morning. it is 11:00 a.m. at the white house and on wall street as well. "squawk alley" is live. ♪