business never sleeps, this is "squawk box. >> good morning. welcome to "squawk box" here on cnbc we are live from the nasdaq market sitd e in times square. i'm becky quick, along with andrew ross sorkin joe is out today, but we have a special guest host, shark tank's kevin o'leary. thank you for being here >> thank you >> we had a massive amount of news dumped on us yesterday. >> every time i tune in to you every morning, market goes up. i have not seen a bad day since i was here last. >> we are counting down this morning to the october jobs report out at 8:30 eastern time. non-farm payrolls forecast to rise by 315,000 following the decline of 33,000 in september, which was impacted by the hurricanes unemployment expected to hold at 4.2% watching the futures, green arrows this morning.

mixed week right now, you're looking at the dow on pace for its eighth consecutive weekly gain as kevin was talking about. hard to find down days the s&p 500 is hovering around break even if it does end in the positive territory, it would be its eighth consecutive weekly gain nasdaq on track for its sixth week of gains. dow futures indicated up by 30 points nasdaq indicated to open up by 20 points. s&p fight pictuutures indicate 0 1.5% this morning the hang seng ended up by 0.3% in korea, the kospi with you up by close to a half percentage point. in shanghai, down by a third of a percentage point in europe, you will see it looks like things are relatively flat.

france, you couldn't get much flatter than it stands the dax is up by 0.3%. the ftse up by 0.25% >> we will get to the gop tax plan and jay powell in a moment, a couple other big stories president trump's twitter account was temporarily dark last night the company says that a exiter employee accidentally deactivated the account on his last day of work i don't know if it was an accident i think he might have done it on purpose. originally said the account was inadvertently deactivated as part of a human error by an employee but later clarified the situation. the account was returned to normal after become down for only 11 minutes. but 11 minutes i'm sure people missed we will see what tweet storm would have happened during that period netflix's stranger things 2 officially hit according to the first ever ratings report on

netflix from neilsen the first episode was watched by 15.8 million people within the first three days that tops the 15 million people who watched the recent season of the walking dead last month a netflix spokesperson said neilsen is not accurate, not even close this is a big deal because neilsen has tried to start tracking netflix netflix has not given numbers. >> netflix should know how many people were watching at any given point. i'm sure they know >> i would not give neilsen the data what do they have to hide? they also have the long tale of people watching in perpetuity. i never understood that war. >> it's not like netflix is running commercials. >> give them the data, be transparent. what are you hiding? my question is if you're trading at that pe, be transparent about everything >> as a network that struggled with neilsen ratings in the past

and felt they are not been accurate, i can understand you're making these numbers up >> there's certain types of programs i think netflix wants to have on its platform that may not perform the way you would want them to in a traditional sense, but if you're running a subscription business you're fine to do it. if you're getting kicked around in the press every day because you have x show and it's not "performing as well as some other show" it changes the dynamic and the culture. ratings changes the culture of things you don't think? >> i love transparency as an investor >> you like it as an investor or -- there's an argument to be made they're able to do more things that they wouldn't be able to do >> they can do whatever they want by providing transparency is giving more comfort to me as an investor to understand -- >> as a journalist i would prefer it. >> i love the idea you can go

invest in an elek tick progrcle programming with the belief that people will watch it for ten years and you get a return they say whatever the production costs are, i'll give you 40% more, but that's it. they must believe in the long tale -- >> like i want to be the owner >> if i'm an investor show me how this works i may give you a higher pe if that model is better >> do you look at the model and say they're overproducing? >> no, what i want to determine is if the long run of production, if every movie ever made you look at the things since the beginning of time, the winners, losers, the titanics, it's about a 7% return on investment, which is pretty crappy if we're taking more and more dollars on a netflix model and producing more stuff at risk, do we skew towards a 7% irr they're not trading near that.

everybody assumes everything they make makes money. just pushing a fewbuttons. asking a few questions you are better than everybody else who made a movie? i don't think so i think there's a lot of crap being produced there, too. at what point does the market look at that let's tell but a few stocks to watch this morning. we will talk about apple in a moment other earnings reports that have come out starbucks shares under pressure. the quarterly sales actually fell short of expectations the company is trimming it profit forecast. starbucks announcing a deal to sell its tazo tea brand to unilever for 3$384 million the stock down by 3% they came in line with expe expectations but also lowered guidance for the current quarter. that's different than what they used to do we have the ceo, kevin johnson, joining "squawk on the

street" later this morning that's at 9:40 eastern time. aig reporting a bigger than expected quarterly loss. they had huge catastrophic losses mostly from hurricanes harvey, irma and maria also announcing a pretax receive vef boost of 3$386 billion that came to a surprise as investors. that stock is down t-mobile and sprint are said to be working to save their merger talking last week word was that negotiations were falling apart over which side would control the combined company sounds like t-mobile has some sort of consideration for sprint shares for print up by 5.3%. apple blowing past wall street estimates in its latest quarter beating on every major metric the company offering an yupbeat forecast for the holiday shopping season, aleving concern

about production delays. we are getting very close to the "t" world, a trillion dollars. the report coming as the new device hits shelves around the world this morning joining us is the senior analyst at william blair and company good morning to you. you listened to that call last night. the thing i was listening for and timed cou ed coutim cook ad the supply concerns. >> thanks for having me. kevin, by the wear, i'may, i'm a of your show i saw yesterday that apple is proving its to be a diversified sticky platform. you saw the diversity in product beat despite mute ed iphone sals

to your point, tim cook did not talk about supply con strabts c the bigger picture is there is no competition when you look at this device, it's no longer a phone it's a personal computing platform and greater proportion of our lives are dependent on this. so it's a good problem to have, which is demand is exceeding supply i believe the fact that they guided 84 billion, 87 billion for the december quarter proves they're bullish on the whole iphone >> what do you think the stock is worth a year from now we talked if we could come within a trillion dollars. >> right so the way i look at the stock is something like this if you look at the iphone sales, call it mid single digit unit

growth asp bump high single digits. the top line is high single digits you do whatever you want to do on buyback, dividends, let's call it low teens eps growth i believe the multiple will expand over time, but even if you don't think the multiple expa expands, that's your return, a low teens. >> you said there's no competition? i think of samsung, pixel, and everybody and their brother. clearly from a market share perspective around the world apple is relatively tiny relative to android, no? >> well, let's dissect that. pixel is what i consider google science project. we've had multiple science projects from google i don't believe pixel succeeds samsung has a history of coming out with these phones. the problem with samsung, it's not an integrated platform they're going after the low-end, going after the high-end

the chinese are attacking them on the low end and apple attacking them on the high end they don't have integrated experience i would argue that there is no second to apple. brfrnlgt >> before i let you go, what will happen to qualcomm and intel in this great debate of which chip is in which phone right now and whether frankly qualcomm chips will be in apple phones in the future at all given the fight they've taken on, legal fight. >> i cover qualcomm. i have a market perform on it, i'm cautious the issue here is qualcomm's licensing business now, qualcomm from a chip set point of view is the leader. there is no doubt. i would argue that the modem is more superior than intel but is it more superior that apple will say we're going to switch i would be surprised if qualcomm gets thrown out.

but apple definitely is moving more towards intel >> we have to leave it there appreciate your perspective this early in the morning thanks >> thank you our top story out of washington, reaction to the republican tax reform plan ylan mui has more on that story. good morning >> we have a price tag for that tax plan, 1.4$1.487 trillion ovr the next ten years that's according to the joint committee on taxation. it means that this bill does comply, if only barely, with those special reconciliation rules that republicans want to use to fast track this legislation. the single biggest line item in this bill is cutting the corporate tax rate to 20%. originally this was going to be temporary to save some money, but sources tell me that conservatives revolted when they found out and kevin brady changed course overnight >> we worked to make it

permanent. we're convinced for our small businesses and our companies who have to compete around the world here at home that perm nanthat s >> that 20% rate is a red line for president trump. he was against any changes to 401(k)s. republicans dropped that from the bill brady told me that he spoke with the president almost every day, sometimes multiple times a day as the committee was writing this legislation >> president trump's all in. his tax cut and jobs plan, he and his team have been very engaged in both the drafting and framework and where we want to go >> these negotiations are not over five republicans from new york and new jersey are signaling early opposition to this bill because it doesn't do enough to spref the state and loc preserve the state and local tax deduction. brady is staying on the table with this issue. he hopes they do, too.

>> ylan, this will be a dance because it's so close to the 5 $1.5 trillion limit they're allowed, if anything changes, there will have to be several changes to make up the money that would be missing, if they take anything off the table, right? >> all these parts are interconnected when i asked kevin brady how much he expected this bill to change, he said that the only number that he wants to see in there remaining the same is 20%. he wanted to see the fosters growth, middle class tax cut, the 20% corporate rate is the number he mentioned. you're already hearing rumblings in the senate over the cost of this bill. senator bob corker is worried about that we'll see as this continues to go through the sausage grinder of washington. >> you made it sound like everything is up for negotiation except the 20% then? >> i asked what does he expect to stay the same in the bill

what are kevin brady's red lines, he said he wants growth, middle class tax cuts and a 20% corporate rate so the only number that he pointed out was that 20% corporate rate >> mr. wonderful, is this wonderful? >> you know what i love about this the best? the opening dialogue that will occur about deductible of state taxes, take massachusetts and new york let the states compete if we do not allow state dedu deductib deductibldeduc deductibili deductibility, you want to attract more you create a competition in a unique way we've never seen for 50, 60 years this is a very expensive state new york city is crazy expensive. it becomes crazier expensive and you say i live in boston why don't i move to tampa? we're about to have a guest on here talking about billions

being invested there i love this. i love this. >> if it's something that goes into effect immediately and doesn't come in in stages t will mean a harsh reality for states like new york, new jersey, connecticut -- >> they have to compete. what happens in competition? productivity enhancement >> you don't see disruption in the years until they figure that out? >> oh, cry me a river.een suckio much cash from people -- >> i would look at this when you start setting limits, like a $500,000 limit, you can take the mortgage interest deduction up to 500,000, then you can't, some states it's just a much higher cost of living $500,000 does not buy you a lot in san francisco >> alternatively there are states that are more efficient

in how they spend their taxes. >> strip will you the mortgage deductions -- because they left some haves, have-nots, i think they'll have a problem getting it passed. >> many of these blue states are net payers to the government much more so than a lot of other states you're talking about. the services in these states as a result have obviously -- there's developed services because there are taxes that pay for the developed services, like we educate people in this state in ways that other states don't. i think you come with me on this it becomes more complicated when you start to think about what some other states are offering and not offering i understand the competition argument >> go to 30,000 feet, ask yourself, i'm one of the people in the continuedry that pay rco of taxes i believe one-third of every dollar that goes to the meat

grinder of states and government -- >> misallocated. >> completely wasted i'm talking about changing that dynamic. let the states compete the more productive ones that provide better services at a lower cost are incentivized to do more of that to attract more capital. it could be a great thing. this is the one time in my life we'll get to do this >> i understand that, even coming from states where we are getting the state and local taxes back, i understand the argument for not subsidizing here is another issue when you come down with it. where was i going with this. >> there's nothing good about taxing more. >> judd gregg was with us last week his point was -- he was there in 1986 when they did it the last time he said you have to kill all the sacred cows. what if you leave thsome in, it's a

problem. if we with simplify the tax code and create competition at the state level, this is a wonderful thing for america, period. i believe this, if we could do these tax reforms, this economy would hum at 3%, 4%. right now it's under 2%. >> but they have to keep it under 1.5 in scoring >> when has scoring ever been right? >> but the problem is they can't make it permanent and fast track it because of the rules. >> but we're trying to kick start this economy back up to 3.5% in perpetuity, which would be a good thing for all of us. >> when we come back, the jobs countdown is on. we'll get ready for today's employment report with some predictions after the break. stick around, "squawk box" will be right back.

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welcome back we are a couple hours away from the october jobs numbers economists are looking for a snap back after that last report which was influenced by the

recent hurricanes. joining us is jim o'sullivan from high frequency economics, and michelle gerard from natwest markets. what mnumber are you looking for michelle >> we're at 300,000. >> you're not at the high end. >> with that decline of 33,000 in september, a 300 number would not put the two-month average anywhere close to what we had seen year-to-date prior to the hurricanes if you had it, you would need a number around 380,000 to suggest that the two-month average would be close to the 175,000 we've been running that gives you the idea about the potential for this to print strong >> jim, what about you >> i have 340, you get a zero and 340, you have 170 average, close enough to what the trend has been >> how would you gauge the economy?

if you're looking at strong jobs numbers like that, what kind of reading are you seeing in the overall economy? we've seen good prints for gdp, too. >> 170, 180 has been the trend already in employment. about 1.5% per year. at best labor force growth is 1% per year it's this is strong employment growth relative to demographics if anything, recent numbers suggest a lift the broader growth numbers, the survey numbers in general are showing a lift jobless claims at their lowest since '73, if anything, things are looking better >> the tax bill, what do you think of it? what will it do to the economy >> i think it will help. it will be a tough sell. i'm not sure we can assume it will go through in the form it has been presented i think it's a positive.

it's important to recognize even without the tax cuts the economy has had good momentum. as you said, jim, it's on an upswing heading into 2018. what do you think the heaviest lift is? the mortgage interest deduction? >> the individual side that's the issue the combination of the two, sort of having to limit deductions and appears for many individuals they'll face higher taxes while at the same time companies are getting a big tax break. it's that combination -- >> good luck selling it. >> it's a tough sell. >> the other issue is a new fed chief. jay powell, assumption is he will get approved. what does this do for monetary policy >> it's basically a continuation of the yellen policy everything points to another hike in december, and the first meeting for the new chair would be march in terms of tightening.

if the labor market keeps chugging along, wage numbers drift up, core inflation where it is, they keep tightening once a quarter. that's the path they're on if that happens, kevin, what do you see the markets doing? >> as long as we get a 100 basis point spread between the two and ten-year, that means i don't have a flattening yield curve what i'm scared about, if we get this december hike and you're saying the next quarter another one, that's a flattening yield curve. that's a bad thing for me as an investor i don't like that message? why can't we get those rates on the ten-year up. >> if long rates don't go up and short rates keep going up, the fed and the markets are on different planets. if the fed tightens once a quarter, you're probably getting something on inflation as well, in which case the long end goes up does the long end respond to the deficit increasing it's nice to stimulate the economy but the deficit is already drifting up and they're adding to the deficit.

>> two different planets, that's cautionary >> you say why aren't long rates going up, we're talking about the fed continuing to normalize rates amid a lower inflation back drop. that's the recipe for a flatter curve and when we talk about deficit and deficit funding, the treasury came out this week saying they won't extend duration, so no more long term debt when we come back, starbucks shares under pressure. the company posting a revenue miss and cutting the full-year forecast and selling its tea business we'll dig through that report with an analyst in a moment. "squawk" returns in a minute [vo] when it comes to investing,

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♪ welcome back you're watching "squawk box" live from the nasdaq market site in times square. >> good morning. we've been watching the u.s. equity futures this morning on this friday. looks like things are looking for a positive open, at least if we say stay where we are now dow futures indicated up by 31 points s&p indicated up by 1.5. nasdaq up by almost 22 points. the dow looking to close at an eighth weekly gain in a row if we continue on this pace let's tell you about a few individual stocks to watch today. activision blizzard's third quarter results missed forecasts. active users fell 20%. activision is raising the full-year outlook as it releases a new call of duty game today, but that forecast is behind analyst estimates.

stock is up 1.6% cbs posting third quarter earnings that beat forecasts, but the revenu fell short due to lower ad sales. cbs earned about 35% of total revenue from ads in the quarter. it owns more revenue per subscriber from digital versus traditional platforms. stock is off by 1.1% pandora reported a narrower third quarter loss but revenues slightly missed forecasts. the streaming service also projected fourth quarter sales that fell short of estimates. ad revenue sales rose 1% as they were hurt by the shutdown of operations in australia and new zealand. that stock taking a big hit. down by over 16%. starbucks shares taking a tumble after the company reported a revenue miss in quarterly earnings good morning to you. >> good morning. >> so walk us through the numbers here looks a bit like an asian issue

in terms of that growth engine slowing down a bit of a same-store sales issue here how do you parse it? >> yeah. i think there's two things that the market was looking for heading into the quarter one, what u.s. comps would look like market looking at 4 %, came in 2%, then really 3 if you factor in the impact of the hurricanes. more importantly, the company cutting ets long-te inting its k was no surprise. the market was looking for mid teen eps growth, the company said at least 12%. so i think that got the market a bit afraid here. we take a step back and look deeper into the numbers there is positive traffic growth in the u.s. that's an encouraging sign china, asia pacific, if you look at china specifically, that's an 8% comp, that can carry the

company. and it's allocated $15 billion to share holds through buybacks and dividends through the next three years. >> let me ask you about the big picture on coffee. when starbucks came screaming up as a brand, it was the only place to really get a premium cup of coffee. now today when i look across all the platforms, i can buy coffee at mcdonald's, dunkin' donuts, a corner guy, everybody has high quality coffee is it over in terms of differentiating the product now? is that one of the problems? >> it's one of the problems they have to address. not only the coffee product, it was also an experience aspect. starbucks long talked about being a place you could meet outside the home and work to meet other people, do work, whatever it is that's been an issue one thing the company struggled with is they're trying to seventy-two audiences. one, the audience that within as a quick cup of coffee, get a

mobile order, that means they have a ton of demand, when you have too much demand it's usually a product you can work out with adjustments of the restaurants. it's a competitive market. we see other players in the premium space on the coffee product. i think there's room for starbucks. i think some subtle changes in the business model and the idea they're simplifying the business model is a key message >> were you happy with the sale of tazo tea company to unilever? >> i think that's the right move i think this company has taken a lot of things, jug megled a lot balls. so the idea of simplifying getting rid of the stores at the mall, tazo, which was a lower price point tea product which they probably didn't need in the portfolio. the company really needed to send that message that we're simplifying operations, making the stores run better,

simfullyfyisimfully simplifying the overall operation. what do you think the stock will be worth a year from now >> i think they'll be up the qsr player the, mcdonald's, burger kings, those guys are trading at 26, 27 times. this stock is trading at 23 times implied guidance for next year that's too large of a discount that is one that's worth a look. they hit on even results, but this is a compelling long-term story. >> r.j., thanks. >> thank you >> we should mention programming note, some of the questions we just asked r.j. we can ask the man himself, kevin johnson, the ceo of starbucks will join the gang on "squawk on the street" at 9:40 this morning when we come back, billionaire jeff vinnik will join us. he's the owner of the tampa bay lightning. we'll talk to him about the gop tax plan and his latest collaboration with bill gates. at 8:30 we'll get the

october jobs report. it's jobs friday already we will give you the numbers and instant analysis then congressman jim jordan will join us from washington to talk about the tax bill and president trump's pick for fed chair. you're watching squx sq"squawk cnbc down to the very server. it keeps your insights from prying eyes, so they're used by no one else but you. it. is. the cloud. the ibm cloud. the cloud that's designed for your data. ai ready. secure to the core. the ibm cloud is the cloud for business. yours.

amazon shutting down its fresh grocery delivery service in parts of some states customers in parts of new jersey, pennsylvania, delaware, maryland and california have reportedly received notices. the company says the service will remain in big cities like new york, boston, chicago. it also said the cutback is not related to the acquisition of whole foods. fresh customers pay $15 a month in addition to the $99 prime membership, they can choose from fresh and frozen foods >> if it's not related to whole foods, that means it's too expensive and not worth doing. >> yeah. >> you wonder if they'll bring

that back in some form when there's a whole foods in your neighborhood >> albertsons plated deal. this is how complicated this business is. i have a stake in that deal. the whole idea to make this work is to make the whole foods store or the albertsons store the nexus of distribution. so order your plated or blue apron order amazon, but you have to have a partner with brick-and-mortar so you can deliver the lettuce four miles away >> so you don't have to do a distribution center everywhere you go the reason you saw a new low this week them is they don't have ab aan albertsons or a whole foods. let's tell you about geopolitical news. late yesterday venezuela's president anounouncing the counr will restructure its debt. michelle caruso-cabrera is here. she has the details.

>> good morning. nicolas maduro, the leader of venezuela went on television late yesterday and said they'll renegotiate and restructure the country's debt heretofore they insisted we will pay, we will pay, as people looked on saying why wouldn't you use that cash to buy food for your starving citizens it will be difficult for americans to participate in a restructuring, and many americans, many hedge funds own venezuelan bonds, because heretofore they have paid, they yield 18 %, 20%. so they're rich in yield americans will have a difficult time paying for one reason the person put in charge of the restructuring process for venezuela is the vice president, tareck el aissami. he's on the sunk shanctions lisf the united states because they believe he's a drug kingpin,

they believe he's got connections to hezbollah, issuing number of passports to islamic jihadists so they could go to venezuela. it's difficult to meet with somebody who is a designated kingpin and impossible for an american to do a deal. >> not to mention will you ask for tough terms? >> right exactly. >> why not just dump the narco o guy and get a normal guy to run the process? >> you talk about the first issue, here's the second issue, then i'll answer that question there's a new sanction in place which says americans cannot hold new venezuelan debt. you can exchange the current so the minute you do an exchange, you would be in violation. okay why wouldn't they want a normal person running the debt exchange this is a good question. you would have to believe that their oil company really exists now to generate oil.

but a lot of people don't believe that anymore they believe it's actually -- you talk to many people affiliated with the government or in opposition to this government, they believe the oil company has become a money laundering operation for the drugs being run out of the government so they were incentivized to keep paying, so they can continue the money laundering operations -- >> if you can't access your bondholders to negotiate with them because of one person -- >> there's a lot of people on the sanctions list and the issue of not being able to accept what they would offer you in exchange >> i predict the whacking stick is coming out for this guy >> i don't i think he's more in charge than maduro if you were dealing with bonds yielding 18% to 20%, you should have known you were in a high-risk situation. >> for sure. >> and that this will go away. >> every payment that's come along, and they were late on -- the people in these hedge funds

know the risks they were taking. >> these stories is where business meets entertainment fascinating stuff. >> venezuela has turned into news of the weird. it's very strange. the other big announcement, they issued a 100,000 note, because they have inflation. this is the new note it's worth $2.50 >> those always become collectors items they're fun to have. >> like the zimbabwe debt. >> show you what happens with inflation. >> you have the notes. >> so this is going to be interesting. the other reason that this is going to be contentious is because bondholders will say they don't have that much debt they don't have that much debt for what their economy could be or should be if it wasn't so mismanaged >> right because good luck issuing new debt, right? >> exactly >> but they have the largest oil reserves in the world. they should be rich and be able

to service a -- >> no without a rule of law. >> if we go back in history and bought the brazilian reworked bonds, they were a phenomenal return is there a chance that if they could just realign themselves with capital markets again, this could be another brazil which is wonderf wonderful? you're talking 30%, 40% returns. >> you have to have a government wants to change and eliminate things like price controls, socialist controls of the economy. these are hard-core socialists >> i will go down there and run for president, clean the place up >> good luck they need an opposition. >> michelle, thank you very much good to see you. coming up, job listing service work has a different approach to hiring it's geared towards providing flexible jobs for women. the co-ceo will join us next to explain how they're attacking the gender gap in the work force. as we head to break a quick check of what's happening in

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accused of obstructing justice to theat the fbinuclear war, and of violating the constitution by taking money from foreign governments and threatening to shut down news organizations that report the truth. if that isn't a case for impeaching and removing a dangerous president, then what has our government become? i'm tom steyer, and like you, i'm a citizen who knows it's up to us to do something. it's why i'm funding this effort to raise our voices together and demand that elected officials take a stand on impeachment. a republican congress once impeached a president for far less. yet today people in congress and his own administration know that this president is a clear and present danger who's mentally unstable and armed with nuclear weapons.

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♪ >> it's going to take 217 years for women to achieve equity according to the latest gender gap study in the world check forum. the big contributor is the challenge of trying to retain female employees throughout their career we are joined by two entrepreneurs who are attempting to build a solution. anna and annie are co-founders and co-ceo of werk that's a database of flexible jobs thank you both for being here this morning to thank you >> thanks for having us. >> you guys are both moms, right? >> yes, we both are. >> you just mentioned that you stayed in a hotel. why? >> because if we didn't, we would have been woken up four or five times and would be here in a totally different state. >> right >> you find a way to make it work, but the reality of being a mom and a parent in general, you know, things always come up. >> there's something called flexibility stigma, which is

worker -- workplaces a lot of times say they do offer flexible hours for employees so that they can accommodate things like taking care of your kids, dropping them off at school. what have you found in the workplace in terms of how that works? >> so what's so important about flexibility stigma is to create programs that are standardized so that employees and employer can really understand what's being offered. when a program is standard and fully embraced by an organization, we see that stigma really get erased. >> how does werk work? >> werk is a destination site for the future of work which we believe is flexibility sflu don't need to sit at a desk to be productive like, maybe,

you used to. people can work at their own pace, work at home, at night after the kids go to bed type of situation. >> exactly we've headline so many avenues in industrial design to think about how to design workplaces to try to think about open offices to foster creativity and, yet, for some reason the standard is still in the office from 9:00 a.m. to 6:00 p.m. or 10:00 p.m. when in reality most people don't actually work optimally that way this is a top need for women, but it's actually a top three factor for all of millennials. >> it's not just women i see more and more guys at the pickup line for kids after school or who are dropping off or who are staying home to help get the kids get through the day. >> right >> what are some of the employers that are working with you all in this manner >> we're working with lots of innovative employers the great thing about flexibility is 80% of companies are already offering flexibility policies the difference is that in only about 12% of those policies are actually used effectively, which is really where we come in because we've created a

framework that allows people to take advantage of these policies in a much more standardized way. >> does it mean that you have don't have to show up at the headquarters is that reality what that interpretation is? >> great question. >> it's a good question. so that's one part of it really for us flexibility is about structuring compatibility needs that increase alignment between what an employee needs and what an employer wants >> oftentimes that means not being at the office. right? >> it's one element. >> i'm curious about it because you remember atta hue there was a moment where apparently nobody went to the office and then they decided actually everybody -- there's a culture of things. >> i recently went to a meeting -- you know how you accept the invitation on your calendar it looked like there were going to be seven people at the meeting. i walk into a conference room. nobody is physically there i look up on the screen, and they're all beaming in through google hangout or whatever it was fine. i felt like -- >> you were the sucker who -- >> i must have looked like an old person because i was, like, where is everybody >> you are so not hip. so not hip >> i think the important thing

to think about flexibility is that when we talk about flexibility, we're talking about full scope roles, full salaried roles. they're not reduced hours or reduced scope. what they're doing is modifying the way that we work to make it more effective and more customized for the needs of the employee >> the thing i would add is working is just one element. we think about flexible as three factors. it's what time of day you're working, where your body physically is when you are doing that work, and then how ad hoc or preset that schedule is being able to work remote -- >> i don't want yare you makingy doing this >> we're an early stage start-up the way that we're monotizing, we're approaching this from several different angles one of them is that we operate a job board of prenegotiated flexible roles, and we charnl members to access those roles as well as companies to post those jobs we're also training and certifying -- recognized by the society of human resources management

we've been getting companies are loving this tool, and we've really been generating a lot of revenue that way >> we have to run, but we appreciate your time hope to see you soon >> thanks for having us. >> take care >> when we return, we have jobs predictions ahead of today's employment report. we are just 90 minutes away from the number of the day and the professor, mr. steve leaseman. he is in the house we'll be talking to him. plus, billionaire jeff vinik will join us on set. he is the owner of the tampa bay lightning. he is teaming up with bill gates. that's at 7:30 a.m ua rur wh o g sqwketnsittwbi hours in just a moment

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>> it is jobs friday we've got a breakdown of what you can expect when the data hits that's coming up in just a

moment a big morning for apple. the company reporting a blow-out quarter last night this morning it is all about the iphone 10. we will talk sales expectations and last night's quarterly results. and president trump's twitter troubles the president's account going dark last night. we will tell you who is responsible. the second hour of "squawk box" begins right now. zbliefrmt i'm andrew ross sorkin along with becky quick joining us mr. wonderful himself. he is here can we call you that >> you can call me that. do you know why? because it's true. >> kevin o'leary, chairman of o shares etf's, and, of course, co-host of "shark tank" is here.

we're counting down to the jobs report, which is less than 90 minutes away take a look at the futures ahead of today's jobs report we're going to show you what's going on right now dow looks like it would open up about 38 points higher s&p 500 one point higher or two points higher, and the nasdaq up about 24 points. of course, all of that may very well change at 8:30. other big headlines to tell you about as well. apple shares, they are jumping big-time in the premarket trading. this morning the company coming in with better than expected quarterly earnings and revenue as well as greater than expected ship it is of iphones, ipads, and mac computers. today is the day that the iphone 10 -- are we calling it the 10 or the x >> 10. >> hitting stores. we'll have much more on apple in just a few minutes >> atits highest level since july of 2015 we'll show you the price tag in

just a moment. this is an ongoing production cuts among various producers seem to be holding it was briefly above 55 this morning. they need it to cover. $60. also, more u.s. stock investors coming off the sidelines weekly dater from lipur showing $9.3 billion went -- it's the biggest inflow since may the consumer may be coming back. >> a sign of the time. >> that's the question >> doesn't feel -- because we've seen stock -- >> it's relative to what if we keep getting these 25 bip rate hikes every quarter, this will put a damper on further growth

you want to see a lot of competition. is that coming in the next two years the fed gets moving? that's the question i have, where it's interesting we'll see. >> steve liesman, 3% in the next two years? >> i think it's probably about right if all goes well, and i think it's okay. >> because the economy would be -- >> i think the stock market -- i economy would be in a good place. i think the stock market has been inordinately benefitting from rates that are lower than they probably should be given the economy, the stock market is forecasting. right? i think there is a little gap here between when markets -- >> it's called goldilocks, right? >> it's a little goldilocks -- >> i don't think that's right. i think that that is a stretch i think that you would be good to do 2.5. i think that's where we're going to be. >> that's it nothing for tax cuts >> i think you are getting two or three tenths for tax cuts, and i think you're getting two or three for foreign growth, and

i think that's about it. i think there's a potential except we're having -- we have an argument with people like -- it's like arguing with a cheerleader -- it's like a statistician arguing with a cheerleader. you think we can go and win the game, and the guy is saying i'm looking at the players we have and here's the numbers of runs we can score and here is the numbers of yards we can gain productivity of the economy, and you have the potential of the labor force. that's what you got. >> you're debbie downer -- >> in the meantime, we have all of these things that hit yesterday from a new fed chair to the tax bill. how does that impact the economy? >> here's what it is you got the tax bill all in one day. you have the jobs report i think the way for investors to think about it is down side risk avoided. looks like there is a bunch of up side. i'll get to what kevin was talking about. on the new fed chair meet the new boss, mostly the same as the old boss

>> the view of the majority party in washington is what's wrong with the economy is on the supply side. it thinks that despite what i think are high corporate profits and high corporate profit margins and the booming stock market, the corporate taxes are too high, and globally uncompetitive, and that lowering them would create an upward shift in the economy's potential so we could do 2% or 3% growth on a sustained basis it would also prompt companies to pay their workers a lot more. well, this morning bring this in morning of the deficit implications >> if these tax cuts aren't paid for, guess where the money will come from. from him and her. and her. congress, tax reform should grow the economy. not the debt

>> okay. sfwlool if it's wrong, we'll have higher deficits and not much growth to show for it tell me this you have made a lot of money in the last eight years, right? >> very happy about that >> a lot of money. >> very happy and proud. >> and you've had also -- i watch you on your show you are brutal about returns on your money >> excellent returns >> you are going to get this corporate tax break, right it's going to raise your returns. >> yes >> and you are going to do what? you are going to do a lot more than you've been doing >> i'm going to deploy more capital. that's in my dna leave me with more >> and you will pay workers more because of that? >> imauto happy to pay workers whatever the market says i have to pay them. let them be free make me pay what the market wants from me, and i'll be willing to pay >> i have a different question for mr. wufrl.

if i came to you as a member of congress with this business plan, right, this is the business plan that i'm coming to you -- i mean this tax plan, right? i'm saying this is my cost this is what i'm going to create for you, and, by the way, just so you know, the next ten years, you probably -- at least according to my model, you might lose $1 .5 trillion, right you would say what >> here's what i know, andrew, and it's a great answer and question, and answering you too, steve. when this economy is set free to do what it does well, when i came up in the early 1990s as an entrepreneur, and i was able to raise capital and sell products to a market and i was less regulate and my taxes were less, this economy was booming >> you just think the model is wrong. >> the model is wrong. it's overregulated at the -- right down to the city level now. you can't even open a restaurant in aspen you can't do it. it's over regulated. i'm pounding this. do you regulate?

you reduce corporate tax rates, bring back capital, and get the government to back off and watch what happens watch what happens >> i'm very conflicted on this i see the argument for lower corporate taxes. i see the argument for equalizing taxes i just have a hard time understanding that what's wrong with the economy and the reason why wages are not higher is because of corporate taxes >> no. i blame the government for this. if you actually let businesses grow and redeploy capital and create more jobs, tell me. anybody here, tell me, is it better -- >> there's tons of money -- >> would you rather give $1 to a government to spend or an american entrepreneur. which is the better outcome? >> depends >> you can't say that. >> i absolutely can. >> you are telling me -- >> if i have a major health care -- >> then why raise our taxes to 100% >> if i have a need for roads -- government does some of the stuff, and business does some of the other stuff. let each have their part there i'm not saying a dollar of the

government is not wasted if it's deployed in a way -- >> you raise taxes to 80%. >> i think it should be -- >> they're much better deploying capital than entrepreneurs are >>. >> there are some things the government has to do >> thank goodness i'm here today. thank goodness i'm here. >> i'm with you 100% if you believe on this tax plan and everything else that you are going to get the deregulation and get the cuts and everything. >> you are >> nobody is talking about medicare >> you can enjoy, again, steve,

a 3.5% gdp growth. yes, you can america can get there. i'm the only cheerleader here. this is ridiculous >> i hope you're right i want you to be right >> i am right. let it happen. steve, shame on you. the government is better spending money than an american entrepreneur oh, my goodness. >> shame on you for -- >> i can't have children listening to that. >> there are things that government does. >> there are certain things that nobody is going to want to pick up certain things the government has to do. like road pavements and different things >> there's so much we can privatize into a better job on imploding the -- >> potentially, yes. the medical business, yes, i will agree with you. when you are now approaching almost 20% of gdp, that is something that has gotten out of control. >> set the next generation of american ain't parenures free and see what happens reason they're burdened and overtacked, overregulated. this is why -- we can see the green chutes the excitement about tax reform. it's my whole life in tax reform we can get it done this will be a very good thing

>> i was running through the numbers of the republicans and some of the high income states, and that's where they're going to run into problems again because -- >> they've come so far down with this corporate tax cut, and they've had to make so many changes to make the numbers work they might be politically endangering the very point of the exercise >> actually, i think greg is right. i think they should do more. i think they should kill more of the sacred cows. if you are going to go through and do this, i'm ticked off they left -- that they left some of the issues in there that they did. if you are going to do it on homes, do it all the way down. don't leave it for -- >> let me tell you what my friend perry who runs a small business in new jerseys is the problem with this. i think you might appreciate this the trouble with tax reform or changes in tax cuts is everybody right now is 100% lenchveraged o the current tax system >> everybody set their businesses >

>>. >> let's make a bet on this. >> i'm willing to bet. give me tax reform and deregulation, and i'll bet you 3.5. >> over what period of time? >> i'll take this. >> three to six months >> what did you say? >> three -- >> three years from now. we'll be at 3.5% we get the tax reforms >> for a full year >> full year >> full year at 3.5% growth. >> less paul signed by les paul. >> do you have one >> i don't have one. >> i have two. >> i would like to lose.

>> i'm willing to bet a signed letter >> coming up, when we return, a big morning for apple after last night's quarterly results. apple's new iphone 10. we'll call it the x hitting stores today by the way, there are lines around the store that's a return to normal of sorts for apple, and then tampa bay lightning owner jeffrey winnick will join us to discuss downtown tampa project and he is teaming up with bill gates to revitalize a key area of the city we'll talk about it. linkedin will go inside the numbers and find out what areas of the country are putting people to work as we head to a countdown of the jobs report. you don't want to miss it. stay tuned you're watching quk x" ren bc"sawbo he

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. let's talk appear and the new iphone results out last night much better than had been anticipated. we are joined from an apple store in new york. any lines there today? >> oh, yeah.

becky, there's quite a line. this is what they're waiting for. i'm here at what would be the fifth avenue apple store that flagship glass cube location it's under renovation. right now we're on 58th right across from the bergdorf goodman. more than 500 people in line some expectations. gene munster was here and said expect 700 plus people in line about an hour from now apple has been handling this logistically and taking reservations from people in line as you mentioned, the earnings report last night from apple was better than expected particularly the guidance that people were looking for because that was some indication of iphone 10 supply the midpoint of the guide was 85.5 billion dollars in sales.

the developer conference, there were fears that maybe the phone won't be enough, or ios 11 then in september when the phone itself was unveiled, it was starting at $1,000 the higher end version, $1,149 people are, are they going to pay that much for a phone? well, it sold out within minutes when it went on preorder availability a week ago. i asked how many they'll have here an apple representative wouldn't say, but they did say they don't want people in line to be disappointed, and so that are they haven't told people to get out of line yet. maybe 1,000. we'll see. back to you. >> thank you for that. i may be headed over there, by the way.

>> you brought this over for us. thank you. >> i did i want it back >> you want it back? i don't know if you are getting it back. okay just tell us off the bat should i go wait in line? >> well, waiting in line is, you know -- if you have nothing better to do, sure it's a really cool phone i mean, i didn't wait in line. >> i know. >> i did preorder, though. 3:00 a.m last week. >> so the issues that i hear about on this are, a, does the -- >> face id >> does the face id actually work >> it does, and i tried it wearing glasses and a hat, and completely in the dark >> okay. a couple of business use cases, though sometimes people like to use their phone under the desk at, like, a meeting, and they don't want people to see them e-mailing or whatever they're doing. >> it's going to be a little trickier >> you could open it with your

thumbs, but now if i was under the desk i would have to do this >> there are definitely -- you can think of a scenario in your car, you know, you want to -- you're driving obviously you want to keep your attention on the road. sometimes some of us sometimes reach for the fingerprint. can't do that now. >> you shouldn't be doing that anyway when you are driving it >> you are absolutely right. >> you could type in a code. >> you can still type in the code you're not going to do that when you are driving. you don't have to use face id. you can use a standard pass code, and the pass code is your backup if for whatever reason face id doesn't -- >> it's very high res now, right? we need more memory? >> well, it helps. that's a 250 -- >> two big issues. let's go battery first since most of our business viewers care about that, i think how long for real now that you have had it for a while. >> i didn't do a formal test it seems to go all day, which, of course, any phone should these days i am a little -- i'm watching it, though it has -- i put it on the pad, and i was a little disturbed

this morning i was not where i thought it should be. that's something -- >> you woke up, and it wasn't -- >> it's not fully charged. i don't know if that's the charger. i was using a full party belkin wireless charger >> usually i can charge this guy in about an hour or two. >> this is -- the wireless charging is very slow. that's something i'm actually going to be watching because i was a little -- >> then there's no home button >> for things like getting your home screen, it's easy to swipe up from the bottom i got that right away. when you get into some of other navigational things, trying to get your apps or a multi-tasking -- >> someone compared it to snap you know how snap, the app, you get into knowing what you are doing. >> you got to sort of swipe up, pause for a second, and then you are in a multi-tasking screen, and then if you want to actually get rid of an app, you have to press down and, you know, then swipe up >> 8 or 8 plus or this

>> that. i'm going all for it $1 ,000 iphone >> thank you, sir. >> time now for today's aflac trivia question. how much did the third apple founder, ronald wayne, sell his 10% stake for in the 1970s the answer wn bchecn "squawk box" continues e, without any confusing mumbo jumbo. thanks duck! yeah honey, i'm sure that's the duck. in fact, he's probably working overtime, just wing-typing away about premiums and deductibles the duck is working 24/7 to help answer all your benefits questions. aflac duck chat. let's chat in messenger. yes or no?gin. do you want the same tools and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team

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>> new the answers to today's aflac trivia question. how much did the third apple founder ronald wayne sell his 10% stake for in the 1970s the answer, $800 >> seth carpenter is u.s. chief economist at ubs let's tackle very quickly this tax reform plan. what do you think happens? a, does it pass, seth, and, b, what does it do to the economy as a result? >> it doesn't pass it seems like tax reform, everybody loves cutting taxes. it's really, really hard to pay for. it got that $1.5 trillion limit they have to conform to, and it seems like the pay for is they have been there, and they're going to be too politically unpopular to get it through.

the baseline is they don't get the big tax package. >> where you -- where do you see the economy headed >> roughly 2% to 2.25% job growth that's why we think we're going to see it move through the hurricane and sort of reasonably consistent job growth, and that's part of what is driving the economy. more household income, more jobs, better consumption spending we think it's going to stay roughly where it is. >> jim, in terms of where the market has been headed, you think that we could continue to see gains in the market through the month of december, but then you're a little more concerned why is that? >> yeah. i think, becky, that we're finally starting to get out a little over our skis i think confidence is rising fear is going down a little complace ensy is creeping in. we've also got a backup in bond yields the fed is raising rates regularly. the dollar is backed up again. we got the m2 money supply that's slowed to its slowest pace since 201 1 we're starting to create a few hurdles.

i think overall for the stock market, and i just think we're going to take a pause next year a little bit and it just feels like the news is almost getting too good of late, and the expectatio expectations, thereby, are also pretty high, and i think even if we stay good in the economy, the results will no longer surprise us as a positive outcome i think that the lack of positive surprises will be at the peril of the stock market maybe next year. >> if you have those concerns, why do you think that the rally continues through the end of this year? >> well, i've got economic surprises continuing to increase, becky, through december and then starting to peak out and actually diminishing in the first half of next year. i think that's kind of the timing that's just a guess. i think we go a little higher. i think we break 2,600 yet, but i think i would get a little more conservative going into next year. >> kevin, you've had some thoughts about the market too. just based on the conversations that you have been having as you travel around the globe.

>> i'm spending a lot of time in small town america these days. champagne, urbana, fargo small companies sort of in the 500,000 to 5 million range that can employ a family, getting more than 7% growth right now. the best year they've ever had i'm very optimistic about small cap u.s. domestic revenue companies into 2018. i think they're going to deliver, and if there's any kind of tax reform for them, that would be the main beneficiary. i was thinking maybe an allocation to the russell 2,000 is more interesting than the s&p 500. would you agree with that? >> i think that's really interesting. small byes are often part of the economy. i'm curious from your perspective, what would the tax reform do for that sector of the economy? do they feel like they can invest now because they don't have access to borrowing or other finance? what's going to change >> assuming a 20% tax rate and flowing the cash back to the

person running the $5 million business, that capital gets redeployed in growth that's my assumption that's 15% more cash >> you should get 15% more free cash flow, and you would consider it would redeploy, and it's interesting for some of these companies too. >> jim, what did you think about small businesses right now just in terms of the russell 2,000? >> i like small caps too, becky. i think one of the things that haven't been talked about a lot is i think this tax cut coming at a 4% unemployment rate is basically an inflationary fiscal stimulus, and it's going to exacerbate already building overheat concerns. i think it could prematurely end the recovery if it's big enough because it's going to accelerate cost push pressures and resuscitate a faster exit approach by the fed than would otherwise be the case.

i'm all for tax reform, but this is a lousy time at full employment nine years into recovery to bring one. it's more of -- >> your version of full employment is other people's version of, you know, some people don't believe we're in full employment. all right? that's your argument >> i want to get the economy at 3.5% gdp growth. i want to get it -- >> i think the hard part about getting to 3.5% gdp growth is productivity earlier you recall you were talking about regulation, but i think the other -- you go back in history when we had the 3.5% growth consistently, part of that was the growth much the labor force. we're just not going to get that now because of demographics. >> thanks for coming in today. it's good to see you too >> thanks for having me. >> folks, let's get you caught up-to-date with headlines. among the stories that are front and center, t mobile and sprint are reportedly making efforts to move toward a merger deal. despite word earlier this week that the talks had stalled wall street journal says the t mobile made a revised offer, although there were no details about that bid sprint is said to be considering the offer in both those stocks

are higher on that news. berkshire hathaway is set to release its quarterly numbers after oday's closing bell. it's one of the companies that routinely releases numbers berkshire expected to earn $1.58 a share on revenue of $60.4 billion. that's what the street is expecting. we'll see what we get. we're just about an hour away from the october employment report it is expected to show 315,000 new nonfarm jobs for the month, with the unempty rate at 1.2%. stocks on the move this morning as well. starbucks shares under some pressure today quarterly sales falling short of estimates. the company also trimming its profit forecasts that may be the bigger issue that had the street a little hung up on this. you can see the stock at this point is only down by 1.6% starbucks also announcing a deal to sell its tsao tea brand to unilever the ceo kevin johnson will be joining squawk on the street that's coming up later this morning at 9:40 eastern time pandora reporting a narrower

third quarter loss, but revenues slightly missing forecasts the streaming service also projecting fourth quarter sales that fell far short of analyst estimates. ad revenue rose just 1% as pandora was hurt by the shut down of its operations in au australia and new zealand. that stock is continuing to decline. it's now down 21% this morning president trump's twitter account temporarily going dark last night the company says that a twitter employee deactivated trump's account on his last day of work. the company originally said that that account was inadvertently deactivated as part of a human error by an employee the company, though, later clarified that situation the @real donald trump account was returned to normal after being down for 11 minutes. and president trump just tweeting this morning "my twitter account was taken down by 11 minutes by a rogue employee i guess the word must finally be getting out and having an impact." >> okay. coming up, the owner of the tampa bay lightning teaming up with bill gates for a project to

revitalize a section of tampa and create thousands of jobs jeffrey winnick will join us after the break. take a look at u.s. equity futures ahead of the october jobs report, which is about an hour away. the dow will open up 36 points higher the nasdaq up ouabt 24 points. squawk returns in a moment

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our next guest is now owner of a pro hockey team jeff winnick is partners with bill gates on a $3 billion 50-acre redevelopment project in tampa, which will create thousands of jobs in the area. here he is jeff let's talk about tampa >> that sounds great to me >> before we go there, there's a huge fascination with owners of pro teams. the premise is, i any, you tell me if i'm wrong, you make no money owning these things, but when you sell them a decade later, you get a huge capital gain because let's start with that are you making any money with your team? >> you know, it varies depending on the league, depending on the team we've been fortunate in the world of sports. as elvalues have appreciated nicely over time there are many teams that actually are a kind of

break-even on an operating business there's one that's a break even plus or minus financially. two, to be one of the best teams in hockey every year, and, three, to make a major difference and inspire people in the tampa bay community. >> i think i heard -- i think the answer is you're not making money, but because it's an asset that comes into your redeployment for real estate, it makes sense, is that really what's going on? >> i don't know if it's going in to real estate that's a separate matter we've been fortunate that asset values have gone up. people often look at the appreciation values of sports franchises they don't always realize how much the owners invest in the business whether it's in players and development in their building that they're in, et cetera there are often major investments that are made over time the appreciation, while it's been really good, it's not always as big as it seems to be. >> this new tax bill takes away the tax exempt bonds for private stadiums being built is that a problem? >> you know, the new tax bill, as you know, there's going to be a lot of changes that happen over in the next couple of

months easy work has been done. the hard work is ahead to us when we look at things like that, you know, in terms of sports facilities being built, there is usually a way to get these things done. it's really important that the lightning other teams have state-of-the-art facilities. whether it's tax exempt bonds going away, and we'll see if that happens, we'll find a way to get these buildings built they're for the greater good of the community, and what community doesn't bond together, rally together around sports >> jeff, i want to talk to you about the market because you actually ran one of the largest mutual funds in the world for a while. you probably watch every day what's going on here what's your opinion of where we're at now in equities you're an equity guy, right? >> yeah. so my previous day job, obviously, i work for fidelity magellan i'm pretty much out of the market right now i'm working on other ventures like developing tampa bay, like the lightning entrepreneurship, mass transit things like that that i have been working on. >> is that a choice because you think equities are overvalued,

or you are busy doing other stuff? >> i think equities are in pretty good shape right here clearly equities are relatively high valuations, but look at the economic conditions we have right now. we have good economic growth, and we have low inflation. yes, valuations are as high as they've been in a long time. i maintain economic conditions are also as good as they've been in a long time while there will be corrections along the way, i this i valuations are going to stay high for a long period of time, and i think there's money to be made in the stock market >> let's get into tampa and your partnership with bill gates. you guys are spending billions of dollars, much of it your own. why tampa? >> it's very simple, actually, and it's the same reason i bought the tampa bay lightning excuse me. tampa is a great place to live the weather is fantastic the people are nice. they're welcoming from a business point of view there's lots of things to do and we have a demographic tail wind of population increasing 1.5% to 2% a year. that is a great place to invest. it's historically been overlooked people haven't realized what a great place it is. that's the opportunity we saw when we bought the tampa bay

lightning when we started a partnership with bill gates and cascade investment you see the same thing of this amazing under valuation. whether it's the price of condos or the price of land i absolutely believe tampa bay area maybe even all the way to orlando will be the fastest growing super region of the economy the united states over the next 20 years. >> it was a great conversation >> yes >> thank you good to see you. when we come back, the latest linkedin work force report is out. look at areas where the jobs are in high dough manned we're going to talk about that

next check out the futures right now. you are looking at green across the board. we will get the jobs numbers at 8:30 all of this may go much higher or perhaps lower dow looks like it will open up about 37 points gh rht w.hierig squawk returns in just a moment. gglobal bonds, and high-dividend strategies. sure, these are investments. but they're not what people really invest in. what people really invest in, is what they hope to get out of life. but helping them get there takes a pure focus. because when you invest their money without distraction, hidden agenda

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. welcome back hiring in the united states looks to be on the rise. linkedin just out with its latest work force report before we get the monthly jobs report from the labor department later this morning dan is the editor in chief of linkedin, and he joins us right now to break down the trends what did you find, dan >> another strong month for hiring 24% increase year-over-year in hiring relatively flat month-over-month, but strong gains in the same industry we've been seeing. oil and gas, manufacturing, and in construction. one surprise is that we've seen increasing demand for people with political skills. that's something new showing up in the data. it goes beyond lobbying. we'll look to see who was being hired. people with grassroots skills. any kind of development. foreign relations. anyone who has been a poli-sci major. this is a glory day for you. >> really? >> i think businesses realize they have to interact or help steer government policies and

regulation the change may be fast and furious depending if some of the bills get passed bills get brought up quickly, and it becomes a massive piece of the economy, and if you are not there, it's not just lobbying, but if you're not there trying to figure out what is happening, you'll be left in the dust >> in the last eight years it's relatively -- you know what you are getting into >> i would argue -- if you weren't doing this the last eight years, i would argue you would be in trouble too. i feel like we've been watching washington from a business perspective since the financials >> things now happen as you were saying, things happen very quickly. now, bills get brought up, and they get introduced really quickly, and it's not just in the federal government it's also at the state level by the way, the company hiring which tech company do you think is hiring the most from the federal government >> any guesses >> amazon or facebook. >> amazon. >> amazon. from the post office >> sure. >> they're hiring so many people >> they have regional issues too. >> my question is are most of the jobs regional around d.c., new york corridor, or is this

all over the country >> from all the state capitals, the companies are hiring there are a lot of regional issues and state issues that they've got to navigate. >> the data that shows by sector where we have the fastest wage inflation. if if a job is being posted at a salary, can you monitor or see which ones are rising faster >> can't yet, but we will be able to soon >> i would buy that data that would be interesting data >>. >> great that's even better free is good when are you going -- when will that be ready? >> it will be ready soon we'll come on and talk about it in the same way we talk with these numbers. you can't decouple wage growth from job growth. especially we're seeing there are a number of just high demand for skills and high growth cities, like portland, seattle, denver, austin you need teachers and retail workers and health care professionals. those are in abundance in places like hartford and norfolk that are losing workers

those people aren't moving to these high growth cities >> have you tied any of the tax -- corporate tax -- not -- the federal corporate tax rate, but have you tied tax rates to employment in the united states at all have you gotten any work on that >> no, we haven't seen those numbers yet. >> they're not optimizing for tax rate at a massive level. you can see when companies are hiring, it's because there's some kind of gap they need to fill >> want to make an observation of the linkedin platform, last year because we do a lot of work in social media to reduce costs for all of our shark tank private tiny companies twitter, facebook, instagram, et cetera all of a sudden last year you started becoming a factor in postings for -- letting people know about products and services like never before. it's not just the job thing. it's letting people know the company exists in the first place. you seem to be able to absorb

more content now all of a sudden we spend a fair amount of energy trying to figure out your platform there's a lot more focus on it is that intentional on your part are you trying to go beyond what the original vision was for linkedin >> the last six years -- five years we've been really focused on content, and so you're writing and sharing on there a lot. >> yeah, because it has returns. >> well, i think a lot of this is that there's no anonymity on linkedn. they're there for a professional reason >> you are saying versus facebook which facebook, by the way, is now talking about doing this business release. >> what do you think of that >> business related endeavor >> when people have linkedn up on their desk, they can do that. their boss walks by. they see that they have lirngedn on, that's not a problem when you have know if open at work, it's -- >> really? if i see somebody on lirnkedn, i think near interviewing. >> messaging messaging, baby. it's a heck of a platform. >> i kind of agree if i see one of my employees on

linkedn, i'm thinking productivity if i see them on facebook, i think what is that whose dog are you chasing? that's an interesting observation about the workplace. linkedn has work cred. facebook doesn't that's very interesting. there's value in that brand, though >> watching facebook try and take something on and watching what they've done to snap when they go on and copy it, what do you do >> we are very focused on going after the professional market and making sure that this is the place for professionals. i think that that is the area where we -- people come to linkedn. they know what they're going to get. they know why they're posting things on there. they know what they're looking for when they come as long as we keep doing that better, people will keep coming. >> still independent from microsoft. still operating independently? >> we operate as a separate entity very closely work with them very closely, but they let us run >> cool. >> thank you for being here. >> thank you >> look forward to that new information too. >> absolutely. >> when we come back, the battle for amazon's massive hq2

project. is the buckeye state a place that jeff bezos can call home. take a look at the major cities that are running for the $5 billion project in ohio. don't forget, by the way, it is jobs friday. our panel is getting ready to break down the numbers special hour of "squawk box" is coming up. stick around wl rhtacweilbeig bk. k is sparking innovation. you see it in the southern tier with companies that are developing powerful batteries that make everything from cell phones to rail cars more efficient. which helps improve every aspect of advanced rail technology. all with support from a highly-educated workforce and vocational job training. across new york state, we're building the new new york. to grow your business with us in new york state, visit esd.ny.gov. your insurance on time. tap one little bumper, and up go your rates. what good is having insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates

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>> amazon has been sifting through more than 200 proposals for its coveted h2q project.

cnbc has been using its top states for business data to find out which states might be in the running for the $5 billion project. scott cohen joins us right now with a report card on ohio, which has at least three areas that would qualify for this project. scott, good morning. >> good morning, becky we're in one of those spots. cleveland, not exactly a chamber of commerce day, but we're not going to hold that against cleveland. cincinnati and columbus also have submitted bids making ohio a rare triple threat remember, amazon wants a metropolitan area with one million or more people all three of those cities, each have more than two million people we're off to a good start. ohio gets an a-plus on population then things kind of go downhill. remember that amazon wants a stable and business friendly environment. now, finances in in the state of ohio are very good, strong, and stable, but in our top states for business study we rank ohio

at 37 for business friendliness tied with rhode island there are issues with sales taxes. yes, they're cutting regulations. it is in the middle of the pack when it comes to lawsuit climate. it's a close call, but instability, ohio gets an f. what about the ability to attract and retain top technical talent we found ohio is sixth in the nation when it comes to higher education institutions, including the ohio state university in columbus, but squault u quality of life statewide rairngs poorly, and the work force ranks 31st, so with relatively few stem workers to choose from in a nonright to work state, ohio gets an f on talent in a state with good infrastructure but few air travel options, a bit high on the cost side. we'll give ohio a c-plus on location you put it all together. it's a 1.67 gpa. not a lot ho write home about. a c-minus for the state of ohio. of course, we don't know how amazon is going to measure all of this, and, of course, people here at ohio take a different

view about their chances they'll be looking at that all day here from ohio >> okay. scott, you are very obvious about where you're standing right now. you are a very tough grader. ff >> yeah. well, i mean, it's looking at the particular categories in our top states for business study that line up with what amazon is looking for in its stated criteria that helps ohio. we give extra weight to airports that hurts ohio. you know, it's a tough scale, but the competition is really tough. >> yeah. i was going to say you have handed out some f's in other places you have handed out f's in other places you've been too >> we were in chicago a couple of weeks ago chicago barely passed overall because of -- you talk about stability in state finances. illinois doesn't have it they feel like they're working together to get amazon there

it really depends on what amazon is looking for with that stable business-friendly environment, and it's really pretty much tops on their list. >> how does lebron factor -- how does lebron factor into this one way or the other >> we're keeping lebron out of it because i can't stand lebron. >> you keep going to cities with multiple f's, you'll be lucky to get out of cleveland alive today. >> you're right. i'll be careful. >> we're going to let scott go thank you, scott thank you for also standing in front of a cleveland sign. i thought that helped just to make it clear to everybody >> yeah. >> scott, great to see you >> no mystery. no mystery >> thank you for that. when we come back, the final countdown to the october jobs report our panel is going to join us right after the break with some big predictions and then at 8:30 eastern time right after the former white house counsel of economic advisors jason will join the conversation. we'll ask him about the president's tax plan as well check out the futures right now. we are in the green.

about 35 points up on the dow. we'll see where that goes in just about a half hour when we get the big number back in a moment for your heart... your joints... or your digestion...

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the october jobs report just 30 minutes away, and an all-star panel is here to get us ready. >> market expectations and implications underway. the final countdown is on as the final hour of "squawk box" begins right now ♪ it's the final countdown >> i am becky quick along with andrew ross sorkin joe is out today sitting in with us is kevin o'leary from "shark tank." he has been talking about what he sees with the markets he will talk more with us in a moment let's take a look at the futures this morning

after the huge amount of news we got yesterday, just weighing in the new fed chief, looking at the gop tax plan we can see the ten-year yielding -- it's been quite a while -- 2.352%. >> we want to show you a live shot of the apple store in new york opening its doors literally right now. the new iphone 10 going on sale at 8:00 a.m. local time. there is a huge line because we should note, by the way, for the past couple of models, the lines vbt been as robust as this every time they truly change the form factor, this happened actually when the 6 came out as well you saw those kinds of lines

>> we said that results topped estimates. you are looking at that stock now. it's up a little over 3.5% they did have their quarterly results last night, and they beat pretty much on the top and bottom line. that's what's going on in apple land this morning, and now we're going to move over to jobs land. >> actually, let's tell you about a few more corporate earnings stories before we do. among some of the other corporate stories, starbucks posting weaker than expected revenue. the coffee chain trimming its profit forecast as the competition heats up shares down on this news you can see they've actually paired their losses. at this point down, but by less than 1%. by the way, the ceo of starbucks will be joining us a little later this morning on cnbc that's coming up at 9:40 eastern time on squawk on the street also, pandora shares are plunging this morning. the streaming service missing the mark on revenue and projecting fourth quarter sales

that fell far short of expectations t mobile and sprint are said to be working to try and save their merger talks last week there were reports that negotiations were falling apart over disagreements on which side would control the combined company this morning both those stocks are trading higher sprint is up almost 5.5% >> now to this hour's top story. the october jobs report. joining us right now we have an all-star cast. the former council of economic advisors chairman under president obama, jason furman is here cnbc senior contributor larry kudlow is here joe, portfolio manager at richard bernstein advisors is here, and we're going to be talking to them a lot about this panel. we don't want to get expectations too high because we're not going to do our expectations right now we don't want to do predictions yet. >> i'm excited >> we want to hold that. i do want to get everybody's take on the new fed chair because i think depending on what happens with these numbers,

it should affect what they ultimately dosh where larry kudlow >> i don't want to prejudge jay powell >> i love when he said i don't want to prejudge, but, i will. >> but his record is one of conformity they're going to be hit, i think. tax cuts are going to raise gdp grow growth the if ed is going to have to figure out how fast they tighten. the current fed models would argue wages rising and people prospering and working is inflationary i don't agree with that. i think they should hold their powder and keep an eye on the dollar to make sure it's steady and flat that's not the fed model that's not what the board staff is going to tell jay powell. i would have preferred a reformer who would have changed all that i'm a little disappointed. >> i bet you jason furman likes

jay powell am i wrong >> i was part of the process that picked him. the inflation rate is -- i'm not seeing a lot in monetary policy reason that needs changing if it's not broken, don't go and fix it >> i think there's a lot of truth to that, okay? i think the employment population ratio is lower than it should be i think the participation rates are lower. i think we have issues with people outside the labor force you know, everybody talked yesterday about continuity, and my point is perhaps so, but if your fiscal policy is going to change significantly, all right, from, in effect, holding back business and investment, now

spurring business and investment and, hence, wages and productivity, that's a challenge for the fed. down through the years, it's a completely different game. we know rates are going to go up and normalize. the question is how fast and to what height and i don't know what mr. powell believes on that i would just say basically look at the history of the federal reserve staff. they really run the place. they look at this phillips curve -- wages rising as horrible thing i don't think it's a horrible thing at all i don't think they understand inflation. i don't think they get it. that's the challenge >> i'm not that worried. if if the tax cuts work, i don't believe they will, but if they work, we're going to get higher productivity >> yes >> we're going to get lower inflation. >> right >> the fed is going to look at their models, and they've been very data-dependent. they've been data-dependent. they're not seeing inflation rising they're not going to raise rates a lot.

if it helps productivity, they're going to go with that. they're going to allow that growth if it's all a stimulus and it's driving up inflation, and it's just short-run demand without helping our productivity, that's what they would and should offset >>. >> john taylor wouldle have jumped in, and kevin warsh would have jumped the model. they would have gone to a different model. i agree with what jason is saying i just don't know if the board staff is going to give that correct advice and so that is going to be the near term challenge. if the tax cuts go through to year end, do we think -- >> what is the calculus here at betting line we are not doing predictions

ut about with the betting line on whether the tax plan at least as we understand it this morning, goes through before the end much the year. go >> i would say the odds are very low. >> very low. >> i think it's enormously unclear right now, and i think the one thing that we do know for sure is if something is passed and it's a big if, it's probably going to look a lot different than it does today >> not in q4 whatever >> no, not -- i think it's very low odds >> speaking about powell as a communicator, modern times, i haven't really loved the ability of these fed leaders to speak well and communicate the data back to the common man it's -- we require a larry in the middle >> there's almost been a point of pride of being obtuse. >> this guy can speak, and he can communicate a vision when i'm hopeful for is he can sell deregulation in a way that no other can, including trump.

>> whether it's conformity and continuity, and anyone will tell you thatten certainty is handling growth. when we saw it largely go flat to somewhat positive, i think it was the market agreeing with that ability to communicate. i think it's going to be very positive for equities. >> his communication is the same old-same old one of the reforms that kevin warsh would have put in is to stop all this data dependent overnight change your mind hold back the reserve back presidents who were on a daily basis confusing the public left and right. i mean, that -- paul volcker used to hate that. >> you don't like fed speak? >> i think it's unnecessary. i think the tax cut bill has a pretty good chance now, that's -- >> because >> which quarter, larry? >> this quarter.

>> i counted 36 republicans from -- that are going to have a pretty tough time because some of their constituents are going to be higher we already know four of them have said they're either going to vote no or on the fence you have a thin margin of how many votes you can have. >> i agree i think in the house it might only pass by five or six or seven votes. look, i hate this stuff. you know, tax reform is not the same as tax cutting. i'll go back to 1986 as a benchmark. the idea in 1986 with reagan and a number of democrats, important democrats, dick gephardt and so forth -- >> i thought you were saying i was one of them.

the problem with this bill -- >> it's coming up. >> on the business side the rate reduction is terrific, and there are submissions we talk about with pass-throughs >> on the individual side, there's no rate slashing you are asking people to give up state and local. that's good policy not now. now, they're going to put back -- >> they're going to look at it and say big korpgs can get a big tax cut, and that's a really hard thing to try to do. >> which really is basically undefined, but i'm going to say this if you give back the property tax up to $10,000, is that enough to bring the moderate republicans back home in new york and new jersey? i don't know the answer to that. >> at least one republican in new jersey who says no way he has already run the numbers, and it's much higher >> that's arthur patterson arthur >> i think you're going to

discover -- we're talking about the property tax and the state and local tax. we all know about that you look at the numbers as a whole. 20% of the tax cuts go to individuals. >> i am still going through. >> you look at year ten. there is a $17 billion tax increase on individuals. the tax cut for individuals is up front, and then it goes away and disappears david caymen of nyu ran the numbers. $59,000 family gets a tax increase those are the types of things that i'll bet the people who drafted the bill, they knew what they were doing with state and local. did they know that they were raising taxes on someone who made $59,000 a year? if you call the tax reform, you have winners and losers. you are doing things that are

thoughtful where, this is being marketed as a big tax cut. you're going to get a tax cut. try telling that person that we're going to raise your taxes, but don't worry, your employer is going to give you a $4,000 raise. >> i think the problem, jason, is it's subject to discussion. i just say that -- >> i'm using the program meter of the bill. you just put in the same exact sample family. >> or -- >> this is going to go away. we'll wait for all these models to shake out basically business tax cut side in my opinion, very good in pro growth individual side not good >> if it's going to be -- that's going to be where it gets weighed down we're going to continue this conversation with our panel. >> everyone will be an escort. >> plus, when we come back, we're going to talk about why the jobs are the veterinarian business is booming. the big hiring story is next stay tuned you are watching "squawk box" on

cnbc puppies and kittens. you got to stick around for this

>> the employment report now

less than 15 minutes away. kate rogers is out on the job hunt this morning. she's looking for industries that are hiring, and she's found one of them with some really cool benefits. kate, good morning >> hey there, becky. good morning we're looking at opportunities for veterinarians. they are said to rise by some 18% through the year 2026, while roles for -- set to rise by 20% tax. opportunities in the field are wide-ranging you can be a traditional vet for dogs and cats and work in research and development, and, of course, there are opportunities for large farm animals like these >> reporter: demand for veterinary professionals on the rise and driven by the booming pet care industry and by a growing world population it places a greater emphasis on food supply and safety >> there's not a human health and an animal health there is human maland the environment. there really is only one health, and we serve all of that >> experts say demand is out pacing supply. particularly in rural areas where veterinarians work with those who produce food vet school graduates offer have

two jobs upon am keg the application process is also highly competitive >> in the united states we don't have enough slots to accommodate all the students >> there has been an increase of demand for the expertise that veterinarians provide to society related to an increase in the size of the human population, an increase in affluence in developing countries as well as an overall increase in urbanization >> now, experts say the industry is shifting as more people are pursuing specialty roles, which do pay more, but, of course, require more schooling that is an average of $32,000 a year traditional vets can make $80,000 a year if you do specialize or have your own practice or care for big animals like this one, you can make well into the six

figures, guys. back to you. >> okay. thank you for that anybody want to take that gig? you good okay sticking with the employment -- i don't know what's going on here sticking with the employment theme is one of life's highest pressure experiences the job interview. how you conduct yourself with the difference between success and failure. a new cnbc ap poll revealing some surprises starting with the -- 40% of people said their mind has gone completely blank, and they were just unable to answer a question 28% said they completely forgot the name of the person interviewing them right in front of them. >> terrible. >> that is terrible. >> 10% arrive the late now, they usually remember the

company. 10% arrive late. 4% got food stuck in their teeth. that's the awkward stuff people dealt with all kinds of the legal questions too. almost everybody has been asked about their age, marital status, medical history, or their plans to have children here's a good one. 10% of those under 30, they admitted being flirted with or being asked sexually suggestive questions during the interview nearly three out of ten people would actually admit to us in the poll, this is who they -- the ones that admitted lying on an interview or an application >> you know, if they ask you questions like that, you're -- >> for things like skills, prior work experience, even illegal drug use, that's 28% of people who would admit to lying i'm sure that number is a lot higher you can catch more of this on cnbc's upcoming show "the job interview" premiering next wednesday at 10:00 p.m >> when they ask you -- >> the liars were maybe lying about lying. >> that's dwnl got to be true.

>> the interviewee was -- >> you are trying to get a job for the person with the power. >> maybe we can talk about this over drinks. >> right >> you are one of -- i read something about this you published something about job interviews years ago you were talking about how you hate -- am i wrong on this you talked about you always ask what they have and what's wrong with you, and then people are always there their favorite answer is to say i'm such a perfectionist my problem is -- what's your biggest problem? my problem is i'm such a perfecti perfectionist, and i just can't -- it's very useful to ask someone something completely 360 degrees away from a job to see how they react

>> then you think they're boring >> what i find is you want to get into -- it's a very poor position, particularly in a financial aspect or ceo. i want >> ask them some questions about how they live their lives to see what kind of a person they are i'm interested in that when you throw an off ball question at them, aufltd they either open up or they don't >> they haven't prepped for that >> how do you work -- it's an intuitive feeling. i hire so many people, and also fired so many people in my life that i now have an innate feeling about who they are, and if they're going to affect a large position i have control in, it want to know who they are. >> what percent do you get right or wrong >> i get 75% right i get it right >> thank you >> when we come back, it's time to sink news your watches. we are getting close to the number this morning. the unowtoheobrertcotdn t js po when "squawk box" comes right back [lance] monica, it is absolute chaos out here!

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>> the game is on. we're minutes away from the jobs report we are doing final prediction from our panel with prices re rules in effect. you have to be at the number or under. >> better go fast. we have a minute and a half. >> 330,000 we're running 175,000 a month. we lost 30 last month. we'll make up for it

>> joe >> i'm going to go higher. 345,000. >> same logic, by the way. catching up with the trend >> i get 345 i use a deficit for my model and what we should have. it's useless because i don't have a stornl factor in my model. i don't know why we lost what we lost and how we lost it. >> mr. wonderful >> exactly 342 on the nose. >> exactly >> watch it happen >> and mr. santelli in chicago this morning, sir. >> 401,000 >> hold on you have to give us a quick explanation. >> i think we're compressed on this this number is going to be a break-out number are, in my opinion, because it's been on the light side, and i think the trend is changing. we're going to be looking at these numbers like consumer confidence numbers in a couple of quarters. >> all right, folks. let's take a very quick look at where the markets stand ahead of this dow futures indicated up by 19

points as we head into this number s&p futures up by about 1.5, and the nasdaq up by 24. also, if you want to take a look at where the treasury market stands, you'll see drum roll please, that the ten-year right now is yielding 2.347% let's get the actual numbers hampton pearson is standing by at the labor department. >> up 261,000. october nonfarm payrolls increase by 261,000 jobs the unemployment rate is 4.1%. average hourly earnings were flat, basically down a penny again, plus 261 is the headline number october private sector job growth, plus 252,000 there were, of course, significant upward provisions for both august and september. august an additional 39,000 jobs higher than what had been previously reported. september, we went from a negative 33,000 to a plus

18,000, so plus 51,000, and an increase of 90,000 jobs over the last two months from what had been previously been reported. >> the labor force participation rate job gains in the month of october, food services, drinking places up 8 the,000. professional business services, plus 50,000. manufacturing adding 24,000. the u6, the so-called real unemployment rate, 7.9%. lowest since december of 2006. after the revisions, job growth for the last three months is averaging about 162,000 jobs per month. job losses, by the way, in october retail losing 8,300 jobs mining down 2,000. back to you, guys. >> all right, hampton. thank you very much. let's get to our jobs panel for

reaction on this we have former counsel of economic advisors chairman under president obama, jason furman. cnbc senior contributor larry kudlow, joe, who is portfolio strategist of richard bernstein advisors steve liesman, our senior economics reporter rick santelli who is standing by at cme, and kevin o'leary who has been manning the desk with us today this came in lower than anybody was anticipating >> what i tried to say just before the break is was that nobody really has any idea how to adjust. >> it makes sense. >> it makes no sense there's no real way to say we had three hurricanes here's the precise number of jobs we were under here's the precise number we can bounce back. >> i don't know anybody who has a good model for something that's never happened before models essentially are based on the past there haven't been three hurricanes florida, texas, puerto rico. the ideas come back, i would take a step back by the way, i think a lot of the numbers remain potentially

polluted by the storms themselves in terms of reporting and the bounceback i don't see some of the things i was looking for. >> the idea that what's happened to the work force to the unemployment rate, those things i think keep the fed going brsh. >> what are you telling me here? come on. push the models aside. >> bob barker rules say you have to go under and you have to get your head -- >> you are so optimistic yes or no on the fed hike. >> i win it every time

>> i don't worry that much about the jobs number here the economy needs 830,000 jobs a month to keep the unemployment rate and participation rates steady adjusted for -- we continue to be way above that. the thing that i think is worrying here, the thing that i look at is the wages here. over the last 12 months, wages are up 53.4% we keep expecting that 12-month wage change to rise. >> we have consumers that are really confident right now you don't see it in consumer spending you're not seeing a justification for that confidence in their wages. that's a worry for the economy going forward. >> how is this in the fed hike yes or no in december? >> i was if on the board, i would be voting no in december

>> there you have it >> ah. you've had a light comeback in the cap x reports. claims are very low. layoffs are very low yet, this was a very lousy number you're way below trend now trend for the prehurricane year-to-date was about 170, 175,000. we're way below that >> you only had 121,000 gain in construction, okay by the way, it is avp showed 22,000 by rights given what's happening in some of the places -- given the reporting by our ace real estate reporter about a labor shortage in the construction work, that number should have been higher. here's another example >> it will probably pick up drastically as you start rebuilding in the areas that the -- >> excellent you had 106,000 job gains in

leisure and hospitality after a loss of 102,000, the prior month. net is zero. we should have had job gains in both months. my point is this i would not make conclusions from this. last month was polluted. this month remabz. >> you want to raise wages you want to raise wages? i do i think -- >> i would like to see workers gets a raise >> cut business tax rates. that's what this report is suggesting we've had a kind of euphoria about the rise in the economy. 3% back to back quarters the atlanta fed was predicting 4.5, i think, for -- i don't know now i don't know >> you call it polluted. >> this doesn't -- this argues for lower business tax rates which will raise rates >> out of curiosity, is there a number here that would have made you think that it wasn't an argument for a business tax cut? >> if it was zero -- if it was 400, cut taxes >> tryingto be analytical.

sometimes i do look at the numbers. >> what is the pronlt, and steve maybe you want to check the futures of a fed rate hike it was 80% a couple of minutes ago. >> it was 86% going in it's 86 percent now. >> let's have rick tell us about the other markets too. rick, you are looking at -- i saw a few basis points move on the ten-year what else can you tell us, rick? >> yeah, no. if you were looking at all the key levels and all the markets, trying to get through 95 and the dollar index, 114 for the dollar yen. 245 for the ten-year note yield. all the major level that is we reached at the end of last week and backed away from, this now cements it we're not going to go on the north side of unchanged with respect to where we closed the ten-year we're most likely to see the dollar index start to being bah up a bit listen, the reason i had a high number, two reasons. i want them to be higher than

all of you we should make it a secret ballot the maybe reason i did it is because of what wages did last month. ed lazeer didn't think it was a polluted number. he said maybe it's a one off it is. that's quite disappointing to go from 2.9 to 2.4. you will see a half a percent go down to unchanged. yeah, i'm not loving that at all. >> where does it go? >> a little weaker >> gold is down right 40 cents hardly at all. >> you know, they're going to raise the funds rate >> i actually think --

>> you know, steve said nobody has a good model because these are one-offs boy, that gives me a lot of confidence about the fed you talk about a whole list of one-offs that use models yikes. jason, what do you think there, huh? maybe we should ease a couple of times, right >> yeah. >> the phillips curve says -- >> let's just give it away >> steve, if the phillips curve said don't move. i would agree with it. >> the fed is raising rates for two reasons. the first is that it can it's not comfortable being bound as low as it is. relative to the underlying ground rate of the economy relative to the unemployment rate i don't think it's reacting right now to short-term movements in either the walk rate or the inflation rate >> here's the worry about where our growth is coming from right now. it's still mostly coming from employment and not from productivity we actually reached a milestone this month the employmenten population

ratio is 60.2% that's back to where it was before the recession if you adjust for the age and demographic trend. we're back at the same place we were before before we were arguably a little bit, you know, over where we would be not the scope we have for additional employment. i hope there's more. i would like to keep testing the proposition. i would like keep trying to bring people in. >> you have older people working longer younger people not working at all. >> those are exactly cancelling out. the prime age workers are employed at less than they were at the -- >> they've gone down >> that rate has gone down >> those two for the first time this month, first time this month, those two exactly cancel out. >> i'm working i'm doing six days a week with a radio show kevin comes on the show. >> you only have -- i'm working. huh? >> what's wrong with these kids? they don't want to work.

>> are you telling me, kevin, in this world today if you come up with a better mousetrap, that you are not paid for it, that regulation takes away your return what are you doing on shark tairng why are you even listening to ideas, kevin if there's no return to capital, why do you bother sitting in that dhar listening to new ideas? >> see, it's all or nothing, kevin. all or none. the strong man arguments strong man argument, kevin don't fall for it. all or none. >> no, i'm not saying all or none >> you can do so much better >> hold on hold on. >> why -- >> hold on give mr. wufrp the floor

>> have you seen the margins as a percent much the economy >> why does china -- why does india grow at 7% >> it's better to be a business now than it ever was >> you don't understand. >> i tried to -- >> mediocre growth >> not mediocre at all >> i have gotten capital to -- >> 12% out of the economy. >> off shore >> record high >> off shore >> the money, the profits are not being invested that's the whole problem that's why the regulatory cost burden is holding people back. and the high tax cost of capital is holding people back, and they're seeking shelters elsewhere. this is the first time profits and wages have split >> why are we arguing about a number above the body blind. the bottom line is what the ultimate motivation is how much you get your return on capital. >> you're measuring the wrong thing. >> you are measuring above the bottom line. >> after taxes after taxes. >> after taxes numbers >> the country's gdp growth versus india, versus china,

versus our competitors >>. >> our productivity growth is higher than what it is in any of the other g-7 countries. our investment growth is higher -- they have much lower taxes in mediocrity. >> they want to be growing at -- >> o'leary is leaving "shark tank" because dlz no reason to listen -- >> hold on >> maybe -- >> wait. >> you have to measure this stuff. >> i love this >> this is the first time. >> profits have increased during this recovery. 11% a year wages have hardly moved at all -- >> are you talking about the obama regulations? you have destroyed all these companies. >> it could be better. why do you want to settle for this >> they're making money by lowering -- >> profits are going up toofrp >> no. no, no >> it's the difference between profits and wages. and i --

>> okay. tax reform is so complicated >> we're going to continue this conversation after the break i will say the last time we had unemployment like this in the united states, we thought we lived in alice in wonderland 2007 nonetheless, coming up, more on the reaction to today's jobs report and, plus, house freedom caucus co-founder jim jordan will come on the show. we're going to ask the congress marn what he thinks about the gop tax plan and its impact on the u.s. economy stay tuned you are watching ""squawk box"" this morning right here on cnbc. six in the morning. she thought it was a fire. it was worse. a sinkhole opened up under our museum. eight priceless corvettes had plunged into it. chubb was there within hours. they helped make sure it was safe. we had everyone we needed to get our museum back up and running,

and we opened the next day. gglobal bonds, and high-dividend strategies. sure, these are investments. but they're not what people really invest in. what people really invest in, is what they hope to get out of life. but helping them get there takes a pure focus. because when you invest their money without distraction, hidden agenda or competing interests, something wonderful can happen. they might just get what they want out of life, and maybe even more.

snoo republicans unveiling the biggest rewrite in the tax code in decades among the benefits the gop pushing tax bracket simple fiction in cuts for both corporate america and the middle class. jim jordan freedom caucus founding member good morning to you, congressman. before we can begin, quick take. you like it or not >> no, i think overall it's good there's some debate on a few of the items, but we've said all along will it cut taxes, will it simplify the code, and most importantly, will it be conducive to leading to economic growth and job creation? we think the answers are by and large yes. this is a good plan. it needs some refinement, but that's why you have a debate in congress we'll move forward from here >> congressman, over the years, though, you have talked about not wanting to leave your children and grandchildren with more debt depending on how you read the numbers this plan would -- 1 approxim.5.

you pay for spending this whole revenue neutral mindset with some of our folks is a fans way of saying we're going to keep the tax burden the same in that scenario what always happens is the connected class wins, but middle class families lose what we should focus on is just designing a good tax code so we get the kind of growth we need to help us deal with the $20 trillion debt. let's be republicans let's actually tackle the spending problem i have just never adopted this premise that letting you keep more of yoo you are money is somehow a cost to the government it's not it's money let's just design the good tax code that does those three things i said. cuts taxes, siefrm fews the code, and leads to economic growth >> take us inside the room, though where do you see the fault lines, if you will, in terms of how this gets negotiated out over the next several weeks, if not much longer? i should tell you that our last panel, some of them suggested, that this would not happen in 2 2018 -- 2017 rather. >> i think it does happen.

part of it is pure politics. republicans haven't repealed obama care yet, haven't cut taxes yet or started on the border security wall there has been an increase in spending, and some republicans are talking about bailing out insurance, health insurance companies. some republicans are talking about -- i mean, if that's our record, that's just not good i think we understand that it's time to get this tax reform done because it's one of those key things we told the american people we were going to accomplish this. i'm optimistic you are american you have to be optimistic. >> what element, though, is the third rail how do you see this state and local deduction? >> you know, right now the sort of compromised position is you're going to allow it for a certain amount on local property taxes. that seems to be an area that's getting some buy-in. again, you know, the states that are most impacted by the state and local, there aren't as many republicans there as in the rest of the country we can figure something out that helps those folks in new york

and new jersey and gets to an ultimate plan. again, you know, i always say that when i was a kid, my dad would sometimes have that come to jesus meeting with my brother and i when we were in trouble. i think some senators, some members of congress after the fact that we haven't passed a repeal of obama care we haven't passed obamacare yet have had the meeting with constituents and understand we better get this done this is what we told the american people we were going to do. >> congressman, those new york, new jersey, massachusetts, california congressman will have to tell their constituents they'll be prepared to pay more money. >> but they are also going to be able to tell them, the corporate rate is done and personal rates are down, you'll get a tax cut overall for middle class families, going to get a tax break. you have to look at the overall picture. if you focus on one things, there are lots of single items i'd like to change to. >> every constituent will try to figure out what it means for their own tax purposes. >> that's why we need the app to plug in the numbers and look down, i'm going to be able to

keep more of my money. that's a good thing for me and my family and good thing for the american economy when they are able to do that, some will get on the phone, you've said democrat senator you've said you're against this plan, why won't you be for it. >> how come carried interest is still in there and didn't get taken out like the president said he would like to have seen happen >> i think there's going to be a debate on that and lots of issues over the next couple of weeks but the -- my perception is the overall plan is good and moves in the right direction we'll fight for changes and have the debate like you're supposed to in congress but in the end we get this done for the american people. >> does the corporate rate go above 20%? >> not in the house and i hope it doesn't in the senate this is one of the things we in the freedom caucus, we said the corporate rate needs to be no higher than 20%. that's something we'll fight hard for. >> okay, thank you, sir. appreciate it. >> a report just out from a

special economy he cequifax befe the data breach, the report again paid for by equifax concludes exclusiecutives did nt know about the breach and all of the sales were preapproved and went through proper channels and no insider trading took place. this was a report paid for by he can qua fhe caequifax. >> when we come back, jim cramer will join us live and we'll get his take on the jobs report and tax reforms and possibilities of getting passed in just a moment. feed the world. o and energy to fuel its growth. real estate such as e-commerce warehouses. and private debt to finance transportation and infrastructure. building blocks of strategies

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and i am a senior public safety my namspecialist for pg&e. my job is to help educate our first responders on how to deal with natural gas and electric emergencies. everyday when we go to work we want everyone to work safely and come home safely. i live right here in auburn, i absolutely love this community. once i moved here i didn't want to live anywhere else. i love that people in this community are willing to come together to make a difference for other people's lives. together, we're building a better california.

let's get down to the new york stock exchange. jim cramer is here with us this morning. jim, i want to ask you about the jobs report but before i do, did you hear the he cequifax news. >> yes, i did, i know bill mclucas for many years and designed the rules for mad money after he was the director of enforcement at the sec he's investigated this and these people did nothing wrong that is good enough for me

there's no one i know as good as mclucas -- >> that's the endorsement then, your endorsement on that i'll go with that too. you know who you're talking about with this. >> mclucas is the real deal would not put his name to this if he thinks they are okay, i think they are okay. >> there's your signoff on this. >> i want a quick take on apple and starbucks. >> apple is blow away, you spoke to the team last night, kind of the service revenue was unbelievable, that's great the ten -- it's going to be i will possible to get the ten the eight you can get but everything is in short supply. i think the story is china turned around, think of 93 when they said china was the problem. china ain't no problem slower growth, returning more capital, it seems like a senior growth company now trying to

transition to being one of these companies that will give good dividend and do well but not like the old days. >> jim, i'll tell everybody they have to wait three minutes to hear what you have to stay on jobs report. great to see you. >> thank you. >> don't miss kevin johnson at 9:40 eastern time today. we'll be right back. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances. gglobal bonds, and high-dividend strategies. sure, these are investments. but they're not what people really invest in. what people really invest in, is what they hope to get out of life. but helping them get there takes a pure focus.

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want to thank kevin o'leary for being here. >> great to be here. >> come back and join us again soon. >> i will. >> bring the jarred muffins. >> i'm going to fatten you up. >> he has an empty leg we'll see you on monday. it's time for "squawk on the street." ♪ good friday morning, welcome to "squawk on the street." i'm carl quintanilla, good revisions and futures are study as we watch starbucks earnings and apple's results and launch iphone x and ism on the way at 10:00 eastern ti