you. tomorrow is cinco de mayo. it is "star wars" day and space day. we're bringing you a behind-the-scenes look at the mission that brought us closer to pluto than ever before. "squawk box" begins now. ♪ live from new york where business never sleeps, this is "squawk box. >> good morning. welcome to "squawk box." i'm andrew ross sorkin along with joe kernen. and becky quick who is in omaha at the berkshire hathaway annual shareholders meeting she has a big lineup of executives and invest s and inv. hang on. we have to get to your news in one second we want to show viewers the futures just for a quick moment.

dow up about 19 points s&p 500 up about 2 a.5 points. in asia, let's show you what's going on over there. red arrows across the board. hang seng down over 1% european equities right now this morning are also a bit of a mixed picture. germany up, ftse 100 up, the french cac is off a bit. treasury yields finally right this moment. the ten-year at 2.937. >> becky quick as we saw is in omaha for the berkshire hathaway shareholders meeting with some unbelievable lighting once again, because she looks really good better than we look here always happens that way. they throw up a couple of bulbs, it's -- >> no, we have great guys here who have been lighting this

place every year that we've been here they take wonderful care of us >> scientific notation 75 million if it was a dollar a share, it would be $75 million. >> let me do the math in my head >> 12 billion to $13 billion. >> how much is it -- >> 12 to 13 billi$13 billion. >> 13 billion, wow >> i don't know what price he was buying these shares at or at what price he was buying these shares, he said it was 12 billion to $13 billions that they spent in the first quarter on this apple share. 75 million shares. it's hard to get your head around that until you think in dollar terms

already berkshire owned 163.5 million shares, and that was what was in the filing that told us what they ended at the enend of the year. in the first quarter, really boosting that to 240.3 million shares, which takes bur s berks from being the fourth largest shareholder in apple to the third largest shareholder. berkshire had 1$116 billion in cash on hand at the end of the quarter. buffett said they have less than that now, and that was because of the massive amount they spent on shares of apple we got into this yesterday when we ran into him. got here late. ran into him saw him. started talking about the holdings asked about apple shares in particular and the way i asked him about it was there were a lot of doubters on wall street as we were headed into the quarter because there were so many analysts and

investors who thaukought the ipe x was not selling well and were prepared to hear lousy news. wall street seemed to like what it heard, did you like what you heard? here's what he had to say. >> i like what i saw too it is an unbelievable company. if you look at apple, i think it earns almost twice as much as the second most profitable company in the united states it's a wide, wide gap. it's an amazing business here's a company that's -- whatever the earnings are, 60 billion or whatever, you can put all their products on a dining room table that's not the way it used to be >> there were a lot of doubters on wall street before the numbers came out were you in the camp worried about what was happening >> it is incredible to me how

you be tare on the investor conference calls, and you read the analyst calls and they talk about next year. nobody buys a farm based on whether it will rain next year, they buy a farm based on the next 1020 ye, 20 years the relevant part in buying a stock is where will it be in the next 10, 20 years. the idea of spending loads of time trying to get how many iphone xs or whatever it may be will be sold in a given three-month period, to me it totally misses the point it's like worrying about the number of blackberries ten years ago. what really counted is what would happen over the next ten years. shares sold down heading into

it, is that a place you would like to be >> on saturday morning you can figure it out from looking at the footnotes in that. we bought quite a bit more apple in the first quarter, the first calendar quarter this year, their second quarter fiscally. >> more than you had reported in february when we got the s.e.c. filings, i think it was 163.5 million -- >> that's what we had at year-end we had something like that >> that was february 14th figures. >> that was probably -- that was reported on february 14th. i think that was as of december 31st i think you're right we had 160 million shares in berkshire. >> so you bought more in the first quarter? >> quite a bit more. >> you own a lot already when you say a lot more -- >> it will come out on saturday

morning. so it will be reported and we're not going to be active now you'll see it went up about 75 million shares >> so up 75 million shares, just for clarity on that. 163.5 million to an additional 75 million shares gets you to 240 million shares that would make berkshire hathaway the third largest shareholder. blackrock and somebody else are ahead of them? is it fidelity are larger shareholders or state street? two major fund holders are ahead of them. that bumps them to position number three in the shareholdership. as you mentioned, that's between 12 billion and $13 billion. buffett himself today ld us lat that was between 12 billion and $13 billion. this is all ahead of the annual

meeting, which is why we're here we're sitting on the stage now that warren buffett and charlie monger will be taking when they address the 40,000 shareholders on their way into town to hear from them. they'll take 5 1/2 to 6 hours of questions from shareholders. they'll come from around the century link center here this is the beginning of a big weekend. you will get berkshire hathaway earnings on saturday morning that's why buffett told us he had been purchasing additional shares of apple. it would become public on saturday any way you heard it here first, an additional 75 million shares of that lots of folks will join us to talk about what they expect at the berkshire hathaway weekend meeting. in about 20 minutes we'll talk to two berkshire hathaway managers we have jim weber, ceo of brook sports, and mike searles, ceo of

benjamin moore and we also have bernardo hees who will be joining us from kraft heinz. >> he speaks, just not on tv often. -- >> he doesn't speak often to the cameras. you're right he's not mute. >> so buffett had a couple of new phrases. you don't buy a farm if you know it's going to rain next year that's a new one -- >> if it's not going to rain >> if it's not going to rain have you heard that one before >> i think i have. it's an oldie but goody. >> he will get like dan rather eventually and the other one is the dining room table i had not thought about that that's true.

>> the idea you could put everything there >> becky, when i was in makeup, just getting a little makeup, i was watching you in the mirror did you know omaha in the mirror is spelled out perfectly as ahamo. >> a ashghamo >> things you notice >> if you see it -- like everything else was totally backwards. but there you were >> it's because all of life relates back to the jumble >> you know, becky, the more time passes, we need to do more puzzles and stuff. i can't remember -- >> i like -- i have been watching you on twitter, we were going back and forth can you believe how young this person is and how old this person is >> i put my idol in, shatner,

who is 87. i compared him to max von saido who was 43? >> that was crazy. >> you had some good ones. >> ralph macchio is 56, still looks like the karate kid and wilfred brimley was 51 when he did cocoon it's shocking to see those side by sides >> the haters then come out asking if that was me, max then they said what if you don't die your hair. i don't know twitter, nastiness >> we asked ourselves for it they get up so early >> it's friday, it's a jobs friday michelle loughlin -- you're here and you're here. we'll get to you in a second

>> bi, gye, guys >> you know who is not around? mnuchin and his buddies. >> in china. >> the market, believe me, is paying attention to this i don't know what kind of jobs number we want if it's too good, you will worry. they would like some positive stuff coming out of here that's what cramer is talking about this morning the market, we have no idea how -- probably not that related to porn stars, what's happening with it. though that was unsettling >> we have not talked about mr. giuliani i did not see you yesterday. oh, my we have a lot to do today. >> remember we saw him at the convention, you thought he was unhinged that was america's mayor i used to like this guy. he lost you when he was like -- >> no, then i sat next to him on a d.c. shuttle maybe six, eight months ago, we had a great conversation but -- but -- but -- everything -- >> i know.

you guys are on opposite sides >> mnuchin left his hotel -- >> i'm on the side of the truth. >> right like the "new york times." as he left the hotel earlier today he said the u.s. trade delegation has been having very good conversations he declined to comment further every little thing -- every little thing that comes out is going to be -- it's going to matter with these tariffs. tariffs, trade and trump the three ts today is expected to be the last day of talks between the trade delegation and their chinese counterparts no formal agenda has been announced. we're watching for trump tweets and mnuchin. >> this morning, cancel that ouster xerox says its current board including jeff jacobson are staying put. earlier this week xerox struck a deal with carl icahn and darwin

deeson to have jacobson ousted and they would then end litigation against xerox and the planned sale to fuji film. but the activist investors failed to fulfill their part of the deal and as of midnight the agreement they struck expired, meaning the ceo now stays. shares of xerox trading higher this morning icahn said jacobson struck this deal to keep his job, meaning the fuji film deal, and now he kept his job because of whatever shenanigans have gone on this week i can't call them shenanigans. what should i call them? machinations >> machinations, maybe the priest is back in the house or something, too? >> they already own 165 million >> yeah. the priest is back

>> that was the whole paul ryan potential. >> he's no longer resigning. he's back. paul ryan is so squeaky clean. he could be the speaker and the priest of the house. >> is the priest getting to stay because paul ryan is getting to leave? >> i don't know. >> people know what we're talking about? >> they do give our viewers some credit they don't live in new york, not from the upper west side >> we'll get the april jobs data report they try you know, they try >> we started talking about apple this morning people wake up >> they were watching "worldwide exchange" where they went over this a lot people know. the data report for the jobs is out at 8:30 a.m. eastern

for a peek ahead at what we can expect, michelle girard. that's the one i skipped she's been with us for years and years. that's nice. michelle managing director from natwest markets, and matthew lisseti from deutsche bank the question i posed was i wasn't sure what to hope for on this jobs number i wasn't sure whether to hope for wage gains then we worry about profit margins. >> we've been in this goldilocks situation where we have had data that has been solid enough that the markets are not worried about the health of the economy. at the same time we're not seeing fast enough growth that gets people worried about overheating. anyone worried that the fed has to do anything more than continue to move at a gradual

pace to normalize rates. i think the economy is doing what you would want it to be doing. it's in many ways looking to be the best of all worlds >> matthew, what do you think, same >> completely agree. for that reason we'll be focused on wage data >> if you were a person that wanted the stock market to sort of resume its or climb, the wage component, good news might be bad news for the stock marketful. >> we always get back to this question, i was going to say, we talk about how you can -- looking at wages, if you get productivity growth it doesn't mean higher wages have to mean higher inflation i think fed chair powell is more open to that idea. he doesn't come from a phillips curve approach in that way i don't think -- it's always important to remind people it's not a bad thing that

people earn more particularly if they're producing more >> powell has pointed out wage growth is low because productivity is low. last week, we got the employment cost index and i think you'll see wage growth grind higher the forward looking basibasis, e important thing is the unemployment rate. we are at the lowest level since december of 2000 if it cuts through 4%, you will see wage growth pick up more significantly. >> michelle, the big question, i don't know whether you thought about it, i'm seeing people try to predict the next recession, because this recovery is so long so they're saying, 2020, 2019. since we have this notion that recessions are caused by the fed tightening, overheated economy, if the terminal fed funds rate is half of what we think of as normal, let's say the terminal one is now in the 4s, isn't it

the world is so different now and we have so much debt that a low relative interest rate can cause it >> yeah. we're not -- i think you're hinting at what i ultimately think for the fed is the most important question, how high do they have to take interest rates. how far above the neutral rate into restrictive territory that's the kind of policy actions that are intended to slow the economy down. >> it is still historically low. >> it will be. we're not near that. i don't think we'll go there my bigger worry from the fed would be in terms of recession is that there would be lagged impact from all of this extended period of easy money it's taken so long to get to neutral that you have a situation where it has in some way put -- there will be a correction as they start to move we don't see anything like that. >> that will be a different kind of pullback.

there hasn't been price discrepancy because rates are artificial >> right >> you're bullish still? >> we think on stocks, growth we're bullish. with wage growth picking up, rate also have to move higher. >> thank you when we return, may the fourth be with you we talked about it earlier it's space day to celebrate we're bringing you an inside look at the mission that gave us the closest ever look at pluto. and becky quick from omaha we're back in a moment monday on "squawk box," we have your ticket to omaha for a billionaires summit. three hours with berkshire hathaway ceo warren buffett and in the last hour he will be joined by charlie monger and bill gates that's monday starting at 6:00

a.m. only on "squawk box." let's begin. yes or no? 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 of trading specialists? did you say yes? good, then it's time for power e*trade. the platform, price and service that gives you the edge you need. looks like we have a couple seconds left. let's do some card twirling twirling cards e*trade. the original place to invest online. the sun goes down. you did a million things for your family today. but speaking to pnc to help handle all your investments

was a very important million and one. pnc. make today the day.

show me the billboard music awards. the billboard music awards knows how to party. [ cheering ] what up, dog? show me top artist. unbelieveable. i've got my whole family up here. look at my dad looking all sharp. with just the sound of your voice, xfinity x1 gives you a front row seat to the billboard music awards, including throwback clips from some of your favorite artists. the 2018 billboard music awards, sunday, may 20th. only on nbc. welcome back to "squawk box. today is space day and also

"star wars" day. may the fourth be with you in the spirit of all things space, we're joined by alan sterns, he had a dramatic flyby of pluto in 2015 that provided this iconic image of what appears to be a heart on pluto's surface. he's the author of the book "chasing new horizons. tell us about that experience and then i want to get into the race for space >> chasing new horizons tells an adventure story combined with a nerd fest about how the furthest planet in the history of exploration was explored took 26 years to do it bunch of young scientists with a dream who convinced nas ka toa across the solar system and they pulled it off. >> what was the actual mission

itself >> the flight was 9 1/2 years. traveled almost 1 million miles per day. >> 9 1/2 years they say it takes two years to get to mars, is that right >> six months. long trips are 18 months >> are you a believer we all will be living in space? >> i think elon is spot on >> down the road a bit >> bezos as well >> bezos i thought wants all the infrastructure on the planet to live up there and us here. >> jeff talks about a trillion human beings across the solar system >> like thousands. >> this is where star trek begins >> you think in your lifetime any of us will be living up there? >> i think we'll see space tour efrm ism on scales. maybe even tourists to the moon. >> who is ahead? you talk about bezos and musk, or sometimes richard branson, he

is pursuing more to do the space tourism. >> i think it's america that's ahead. only america has this industry you don't find this developing anywhere else. we're leading the world, not just in nasa but in the private sector in terms of all things space. >> is pluto back to a planet >> definitely is >> that was disappointing when they pulled that >> you saw it, what do you think? >> it's semantics at this point, right? i don't want to -- looks cold. >> it's very cold out there. very far from the sun, no question i think the exploration of pluto showed it has the same attributes of planets like earth and mars, mountain ranges, weather, an ocean under its surface. five moons spectacular place. >> given -- now i'm worried that the universe is not infinite given some of the hawking conjecture i've seen in the last

couple of days assume it's close to infinite, we're talkin -- civilizations, are there not? >> i think that's true >> there a worm hole and get from one place to another -- >> no one knows that >> can you travel at the speed of light >> we don't know how to do that yet. >> you said you think the u.s. is far ahead >> yes >> is that because of nasa or so many new private efforts >> it's both >> would you prefer -- do you think we need to put a bigger budget against nasa or is the private sector going to be the one that does this >> i think nasa can use more resources but they also can be more efficient the new administrator i think will make important changes. he understands the value he can get from the private sector. >> where is china in all of this >> they're coming on strong.

they're not competing with us yet but we better watch our back >> trump -- >> he likes space. >> he does there's a battle between everybody who wants to fix things here and people who want to soar into the -- you must be conflicted on this don't you want to fix everything before we start worrying about this pie in the sky stuff? >> i kind of feel like we should take care of ourselves here first. >> yeah. yeah i know you >> you also have to invest in the future >> some of the future stuff helps you here >> it's mankind's mission to soar "chasing new horizons" is the name of the book we also want to send it back to becky. she has a big lineup coming up >> we have two ceos of berkshire holdings companies benjamin moore ceo mike searles

and brooks sports ceo jim weber. "squawk" will be right back. i'm very proud of the fact that i served. i was a c130 mechanic in the corps, so i'm not happy unless my hands are dirty. between running a business and four kids, we're busy. auto insurance,

homeowner's insurance, life insurance policies. knowing that usaa will always have my back... that's just one less thing you have to worry about. i couldn't imagine going anywhere else. they're like a friend of the family. we are the cochran family, and we'll be usaa members for life. save by bundling usaa home and auto insurance. get a quote today.

pthey don't invest inn stalternativesds. or municipal strategies. what people really invest in is what they hope to get out of life. but helping them get there means you can't approach investing from just one point of view. because it's only when you collaborate and cross-pollinate many points of view that something wonderful can happen. those people might just get what they want out of life. or they could get even more. a few problems actually. we've got aging roadways, aging power grids, ...aging everything. we also have the age-old problem of bias in the workplace. really... never heard of it.

the question is... who's going to fix all of this? an actor? probably not. but you know who can solve it? business. because solving big problems is what business does best. so let's take on the wage gap, the opportunity gap, the achievement gap. whatever the problem, business can help. and i know who can help them do it. ♪ welcome back you're watching "squawk box" live from the nasdaq market site in times square. good morning welcome back u.s. equity futures have turned

slightly positive. first thing in the morning they were slightly negative it's around the flat line. we have so many things swirling around including just a very volatile market. down 400 points at one point yesterday, then closed up a birth. bit we have some stocks to watch >> europe's biggest bank, hsbc reported a drop in first quarter net profit they missed forecasts. operating costs outpaced revenue growth hsbc also announcing a new $2 billion stock buyback. weight watchers reporting better-than-expected first quarter results. it added 1 million new subscribers to its programs. the company is also raising its full-year earnings and revenue outlook. becky is in omaha for the berkshire hathaway annual

meeting which gets started this weekend. becky? >> andrew, last night we caught up with warren buffett ahead of the annual meeting he will talk to 40,000 share holders here about these issues. before he did, we caught up with him last night and got some news we already told you about shares of apple and that he added to his apple holdings in the first quarter. also talked about usg, a gypsum products company, which is used in wall board and all kinds of building materials asked about usg which has been approached by germany's kanoff to purchase the company. kanoff owns about 10% of the company, but berkshire hathaway is the largest shareholder in usg, owns about a third of the company. so this point or up until recently usg had given the hand,

firm hand no to any talks coming from kanoff. but recently they changed their mind, and that came after buffett really voted no for the slate of directors that would be coming up. that's a rare thing to hear buffett and berkshire hathaway vote against a company that they own a major stake in here's what buffett said about that yesterday >> we own about 30% or something like that. we owned it for 18 years, not all of that, because good-sized piece. we had price come to the aid of the company in financing when they needed to come out of bankruptcy in 2006, and then when that money they raised then got hit by the housing total freefall, 2008 they needed more money we came up with it so we've been there a long time. it's true that i can't think of a time -- there may have been

one that escapes my mind that we voted against directors, but we did not think they responded properly in terms of not sitting down and at least talking to kanoff who also held their stocks for 18 years and owned 10% or so of the company we did not think the directors were essentially doing their job. so we said we intended to vote against that we don't have rival directors or anything running against them, but we did vote against them >> the company has said since, usg said they will sit down and talk to them and thinks the $42 that knauf is offering is not a fair bid what if they don't reach an agreement? >> we'll see what happens then i was pleased that the districters decide district e

-- directors decided to do that >> have you talked to the u usg ceo? >> she called me a few days ago. i can't remember exactly when. not sure of the day, but we had a cordial conversation it was after they announced they were going to sit down and she did call me then it was a friendly call >> that's a harshed ed admonitin from warren buffett who normally does not say things like that. we'll talk more about that in a moment joining us now is bob searles, and jim weber. great to see both of you thank you for joining us >> good morning. >> great to be here. >> jim, we have to talk about the boston marathon. this is the first time that an american woman won the boston marathon in 33 years she just happened to have been wearing brooks she was sponsored by brooks.

congratulations? >> desi is a deserving champion. she has been competing hard in that race. she was second a few years ago she persevered in tough conditions we're excited for her. >> brooks sales have been on fire what happens when you see something like this? does that immediately add to sales? i think your sales were doing well before. >> we're positioned well in run. we're up 28% in the first quarter. up double digit last fall. we're trending now a win from desi will inspire a lot of young kids, not just hopefully girls but boys as well it could spur participation, that's how inspiring her victory is >> mike, good luck topping that. what do you have >> we have a can can "squawk box" paint because we can never compete with the brooks charisma >> how are things going right now? what do you see in terms of sales? what do you see from the

consumer a lot of this plays in to how people are feeling about housing. >> i think the consumer is in good shape consumer confidence is up. employment is low. wages are coming along that should translate to a good quarter. we had poor weather in march this year. so it was a bit of a blip. i think the consumer as far as benjamin moore is concerned is in good shape and the architectural paint and construction business is strong. the biggest hiccup is the cost of housing first-time buyers, millennials are getting priced out of the market that's hurting them? >> do you generally see stronger sales when people are building homes or is it even when people are just saying i'm staying in my home but i'll fix things up >> both. we don't participate in the new construction market much it tends to be a lower price

product. >> because it's the builders and developers deciding which paint to pick? >> more of a spec. the average age of a house in america, 75% of the houses are more than 25 years old when you get to that 25, 30-year mark, significant investment, updating, painting occurs. that bodes well for us, that aging house bop lags, becaupoput bodes well for repainting. >> let's talk about the tax cuts what has that meent fant for yor business >> we have not seen a lot of impact on our business because of the tax cuts. we have not seen much of an impact at the consumer level our marketplace at retail is stable it's not hurting like it was a year ago so the consumer is there they're being choosey. they have lots of choice we have not seen much consumer

impacts. >> before we go into the tax cuts, let me just ask you about the retail situation for sports wear it was such a crushing time a year ago as so many of the outlets shut down. so many of the brands -- retail store names that we know were in trouble, they were closing stores or going out of business entire entirely what do you do to make up for that loss? >> we lost some stores, and the stores remaining are having a good year. it's not easy, but they're flat to up a bit. we're seeing a shift to online shopping right now over 35% of our products are going through a website somewhere. there's dick's sporting goods, zappo's, or even our online, we're seeing small stores test home shipping. even from a specialty run shop

they're producing digital connection websites. retail is evolving the ones there now, most of them are doing quite well >> 35% of your sales are online at this point. how does that compare to two years ago? >> 20% it's grown dramatically. >> where do you think that will be three years from now? >> we think it could go to 50% the brick-and-mortar experience is still relevant in footwear, running. but the digital behavior, investigation and research online is continuing to develop. >> do you sell through amazon? >> not directly. we sell through partners on amazon we have seven approved partners that are presenting our brand there. >> that's a better alternative than selling directly to amazon because -- >> because they're supporting our products, presenting them in the way that we want them presented. it allows us to keep inventory matched to demand in the

marketplace. >> >> mike, tax cuts any impact on your business? >> i don't think we can see it directly >> is that because you guys are owned by berkshire hathaway? it's a different scenario? >> to jim's point, we manage our business on a pretax basis that's a benefit that's nice to have, but it can be taken away just as easily i think consumers feeling good, the problem we will have in expanding our business and the construction business in general is home prices in 2017 were up 6.3% that's twice income growth three times inflation. until we get more housing into the market and prices of existing new houses come down, and prices of existing homes that have been inflated get more normal, we won't get back into a cycle. >> if interest rates continue to

rise, does that worry you? it's hard to see home prices coming down if people are paying more for mortgages >> interest rate and mortgage applications are an issue you watch. ger issue now is housing costs. >> thank you both for your time. have a great weekend >> thank you >> andrew, back to you >> thank you great conversation when we come back, the countdown to the jobs report is officially on. forecasters expect 195,000 non-farm jobs in april we'll have instant analysis after the numbers hit the tape at 8:30 eastern time "squawk box" returns monday on "squawk box," we have your ticket to omaha for a billionaires summit. three hours with berkshire hathaway ceo warren buffett and in the last hour he will be joined by charlie monger and bill gates

that's monday starting at 6:00 a.m. only "ua b."onsqwkox o advr in an etf? don't just track an index, help me meet a client's need. is the fund built to sell or built to last? etfs are only part of a portfolio. so make it easy to explain. give me a quality fund that helps me get clients closer to their goals. flexshares etfs are designed and managed around investor objectives. so you can advise with confidence. before investing, consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. never owned a business.e term "small business," there's nothing small about it. are your hours small? what about your reputation, is that small? when you own your own thing, it's huge. your partnerships, even bigger. with dell small business technology advisors you'll get the one-on-one partnership you need to grow your business. because the only one who decides how big your business can be, is you. the dell vostro 15 laptop, with 7th gen intel® core™ processors.

- anncr: as you grow older, -your brain naturally begins to change which may cause trouble with recall. - learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers. - anncr: prevagen is now the number-one-selling brain health supplement in drug stores nationwide. - she outsmarts me every single time. - checkmate! you wanna play again? - anncr: prevagen. healthier brain. better life.

nike ceo mark parker is reportedly saying sorry. he called a meeting to apologize for a toxic culture where some members felt excluded. he reportedly told employees he's personally committed to making nike a place where everyone can thrive in an environment of respect, empathy and equal opportunity. his apology comes weeks after nike launched an internal investigation into misconduct at the company. in that time several high level staffers have left including the head of hr and parker's second in command shares of nike have held steady since the company first acknowledged issues with corporate culture. nike is a dow component. >> it is >> it is lower just barely in

premarket trade. it's like we have a whole new list goldman, united health >> it's not that new >> i know. >> new to you. >> here's some news. joseph and becky this matters twitter is urging users to change their password after discovering a big glitch >> i saw that. >> have you changed your password yet >> no, because i'm like some people that immediately say they are hacked if anything ever happens, i will say you did it >> i see some passwords were stored in what they call readable text >> 300 million, right? >> on its internal computer system twitter says it resolved the problem and found no indication that the passwords were stowingen stowing stolen or used the fablgct that there was a tet file where they all sat is a problem. >> strength in numbers

>> 1 out of 3. bad luck if someone got -- >> if someone got one. >> if they saw the list -- >> i assume they would search for certain people >> if you make a little mistake of judgment then you can say it's not yours anyway? don't you think you should leave that option? no >> i'm not -- >> i lock my computer screen every day. >> you like the option >> i'm leaving it open in case i need it some day your ticket to omaha we're going to take you live to the berkshire hathaway shareholder meeting. we'll shee you what it's like to attend the woodstock for capitalists. at&t provides edge-to-edge intelligence, covering virtually every part of your retail business. so that if your customer needs shoes, & he's got wide feet.

& with edge-to-edge intelligence you've got near real time inventory updates. & he'll find the same shoes in your store that he found online he'll be one happy, very forgetful wide footed customer. at&t provides edge to edge intelligence. it can do so much for your business, the list goes on and on. that's the power of &. & if your customer also forgets socks! & you could send him a coupon for that item.

good morning again and welcome back to "squawk box" live from the berkshire hathaway shareholder meeting in omaha, nebraska we are here ahead of berkshire's annual meeting 30,000 shareholders will be descending on omaha. they'll be here at the century link center in omaha on this stage buffett and munger will be taking questions for five and a half hours from

shareholders before that we got a chance to catch up with warren buffett last night we asked him about the economy because berkshire hathaway is obviously a great read on what the economy is at large in america and across the world at this point with all the companies. that's not only because of the companies that berkshire hathaway owns directly, but also because of, you know, the companies that owns directly things like the utility company, the energy company and burlington northern santa fe give a good read of what's happening in the economy at any given moment but berkshire hathaway also has this massive security portfolio of companies like coca-cola. it's got kraft heinz it's got banks from wells fargo, american express, bank of america. all of these things give warren buffett a good idea of what's happening in the economy you're going to hear what he says about how he thinks the economy is going right now >> well, all i can say is the

last seven or eight years have averaged 2% roughly. it's stronger than that right now. they are their own seasonal adjustments in the first quarter. they've had years to work on it. i would say the berkshire hathaway index of business activity is stronger than it's been and it's been improving year after year after the financial panic. >> also we have a new documentary that's going to be premiering tonight on cnbc it's called "warren buffett: investor, teacher, icon. that's right here at 10:00 p.m. on cnbc. we still have a big lineup from omaha. up next we have mario bei.gall we'll be light wac

welcome to holiday inn! thank you! ♪ ♪ wait, i have something for you! every stay is a special stay at holiday inn. save up to 15% when you book early at hollidayinn.com

buffett's big buy. the oracle of omaha saying berkshire bought apple in the first quarter. that news and much more ahead of this weekend's annual shareholder meeting. jobs in focus. we'll tell you what you need to watch on this final trading day of the week. plus the ceo of mars north america on the nation's candy crush. we're going to talk cocoa prices as the second hour of "squawk box" begins right now. ♪ live from the beating heart of business, new york, this is "squawk box. >> good morning and welcome back

to "squawk box" here on cnbc we're live in times square i'm andrew ross sorkin with joe kernen becky quick is in omaha getting ready for this weekend's big berkshire hathaway shareholder meeting. before we talk to her, a look at the equity futures at this hour. dow off about ten points nasdaq up five points. here is what is making headlines. it is jobs friday. the april employment report will come out at 8:30 eastern time. consensus forecasts calling for 195,000 new non-farm jobs with the unemployment rate ticking down to an even 4% we'll see whether the numbers match at 8:30. several pieces of news from newell brands. it reported a quarterly profit of 34 cents per share. that beat estimates by 7 cents it also added several units to the businesses it plans to divest includie ining joston's

>> saw a piece on this earlier the chart's bad. but this is our friend, martin -- >> it is >> right that put his company jarden into newell but it apparently hasn't gone that well. >> it has not worked >> no. that was beating lower expectations i imagine is what they were talking about. but we haven't had him on in long >> we should have him on at&t says forcing it to sell directv or turner networks would destroy the value of its time warner acquisition that view contained in the final briefs in the trial against the justice department which is trying to block the deal the judge expected to make a final decision by june 12th. of course one of the great ironies of this situation is given the amount of time this whole thing has taken to the extent that it does close, which there now is an expectation it will >> you think so? >> i think the expectation is the government will lose

i don't know if it'll turn out that way but that's the betting line at the moment however, given the fallen price of all of the telecom companies. at&t, comcast parent company of this network the ratio means that time warner shareholders are not going to be getting the kind of premium expected so we'll watch that one carefully. >> there's a complete win for at&t and a complete loss for at&t then there's things in the middle that the judge could decide >> the likelihood is there will be a transaction >> and keep everything >> yes if it goes through, the expectations maybe there's some other conditions somehow that are imposed. >> let's get to becky quick who is very well lit in omaha today.

the audio may not be so good, but does that really matter? with tv. i don't know >> no. >> no. hair and -- >> it's all about the light. hair, makeup, light. >> yeah. >> yeah, yeah. all right. last night, joe, we caught up with warren buffett. he made some news on berkshire hathaway's apple investment. we asked him what he thought about apple's most recent quarter. here's what he had to say. >> there are surprises it is an unbelievable company. if you look at apple, it earns almost twice as much as the second profitable company in the united states. it's a wide, wide gap. i mean, it's an amazing business here is a company that's whatever the earnings are, $60 billion or whatever. and you could put all their products on a dining room table. i mean, that's not the way it used to be in this country

we don't own it for the next quarter. it is incredible to me how you read the investor calls after reports. or you read all the analyst reports and they talk about what it is next year. nobody buys a farm based on whether they think it's going to rain next year or not. the relevant question when you're looking at buying part of a business is where's it going to be in 10 or 20 years? it may be you don't know the idea of spending loads of time trying to guess how many iphone x's or whatever it may be may be sold in a three-month period to me it totally misses the point. like worrying about the number

of blackberries ten years ago. >> do you like the stock have you bought more of it do you think that that's another place you want to be >> well, i don't know to talk about what is coming out on saturday morning so they can actually figure it out from looking at footnotes in there. we bought quite a bit more apple in the first quarter at the first calendar quarter this year. their second quarter fiscally. >> more than you had reported in february when we got the s.e.c. filings, i think it was 163.5 million shares >> that's what we had at year end. something like that. >> that was february 14th figures. >> that was probably -- that was reported on february 14th. i think that was from the end of december >> wait. so you bought more in the first

quarter? >> quite a bit more. >> you own a lot already when you say a lot more -- >> well, it'll come out saturday morning. so it'll be reported we're not going to be acting that you'll see it went up about 75 million shares >> joining us now in omaha ahead of the annual meeting is mario gabelli. mario, how many years is this now? how many years have you been coming to the berkshire hathaway meeting? >> probably only 16 or 17. we run a dinner for columbia business schools tonight >> the school gets -- we pay the bill right. that's what they're doing. >> mario, you have been coming here for a long time i know you're a close watcher of

berkshire. what do you think the big topics will be? >> the normal ones, the ebitda is it sustainable. what happens if interest rates go to 4% very quickly? does that shift the pendulum with regard to the outlook for those and obviously the notion of regulations, taxes, and obviously the economy and what he called years ago medical cost as a tapewormof american industry what is he doing with the -- >> jpmorgan. >> dimon and bezos with regard to that issue. that's important for the outlook of the country >> we are going to be speaking later this morning with barnardo hees. what do you think we should ask him or anything you'd like to hear from munger on that subject? >> well, you have a notion that

the pricing power of consumer products, companies particularly food and other if inflation rises, did they have the pricing power? they lost that as the power brand has been changed then the notion of why go after and with berkshire backing off the policy of u.s. gypsom and saying they want it sold airlines, apple. so let's change the way warren is thinking and how is ted and todd doing this. and how is they doing that >> joe's got a question in the studio >> hi, joe >> hi, mario thanks for coming on this morning. my question is -- and i could talk to andrew about this. but philosophical question i've been thinking about quite a bit given the charter news and the -- you know, everybody's worried about, you know, cutting

cords and getting everything on, i don't know, around the box or something. millennials are now getting married. they're not living at home and experiencing things. >> i'm not going to say to whom. >> okay. but they're turning into -- they're eventually going to turn into good people so they don't need cable now they just netscape or -- >> netscape, geez. we're going back in time >> they netflix and chill. nobody needs cable to me i would feel, like, naked without cable. i can go to netflix. but then i'm back to cable and back to watching, you know, playoffs or i'm back to watching -- you know, i need my cable. i do will these people eventually -- these people will they eventually come back and need cable or once you get rid of cable, you're going to be 50 years old

and surfing netflix and youtube? i don't know does it come back? or is it the beginning of the end for conventional old line media? >> well, content and connectivity on a mobile basis the united states only has 330 million people but what i know they want and what i want everyone to have would be one gig of speed so we could have instant connection. and so looking at video as becoming a commodity product, speed and broadband are the more important things we want you mentioned two things sports, live news, and cnbc. there is nothing else. nothing else that anybody wants to watch but they will pay for it and they will watch it and go online and do it. beyond that, there's so many options, so many alternatives.

what we said as a firm about 40 years ago when we covered the entertainment business, give the consumer what they want, where they want it, and deliver the low cost so i like the fact that the world changes. >> mario -- >> are you answering me though i mean, would -- >> of course not i'm not going totell you what i'm going to do when -- >> are you going to see a slow sickening decline? bit by bit, you know, 90,000 by 90,000 as people cut the cord or is it here to stay >> i want speed. i want broadband whether i want fixed wireless or via satellite. i need to connect. >> andrew's worried. you're not worried >> it sounds like you're saying it doesn't matter whether they're getting cable or not they're buying companies for the broadband connection. >> my midnight job is the ceo on

a telephone company. give speed to the consumer wherever we are. >> mario, two quick questions for you. the margin on the video business relative to just the straight up broadband business how does it impact >> it's going down >> no, no, no. go ahead >> the margin will decline as time goes on and it has been doing so at an accelerating rate. there are the cord cutters you know, i'm watching a 10-year-old today watching how he plays fortnite. and the answer is, they're doing it but they need speed, they need connectivity so they're going to pay for that. at some point in time even the netflixs of the world will pay for getting on a highway which they're not paying on today. that's a work in progress. that's the beauty of -- >> because that's net neutrality ending >> that's true >> and where are you on the

sprint deal with t-moblie? because that goes to the speed issue. do you think that's a deal that's going to get approved >> yes 80% probability. >> 80%. >> i think the rules of engagement -- that's pretty high i mean, i think, you know, when i had the at&t deal five years ago, i thought that was 30% because of the hha index will they re-examine the concentration in a given market over 35% and how are they going to handle that issue work in progress we'll get some hibts on some of that with the sinclair deal with tribune. you'll get hints on that with the fox -- what's that company disney merger. and obviously the one that's on queue right now. >> okay. so did we get an answer on that? >> yeah. 80%, joe 80%. >> no, no. >> which is much higher -- >> not on that he's still going back. >> okay. got it got it >> then i'm back to looking at

netflix and i'm looking at the valuation. just trying to figure out where -- the market caps are getting similar. the market cap of comcast and netflix are getting similar. but one's got huge earnings per share and the other -- it's growing, but it's -- you know, we're talking about -- >> basically joe wants to know buy comcast or not >> or buy netflix. do you buy both? i don't know do you buy neither >> i think the notion of giving 120 million customers -- you saw what bezos just did raising the price of prime costco raises the price on my card the notion of having 120 million customers where you have pricing power and you're putting money into content, they're very good at gathering customers that question is can they maintain the eyeballs? can they maintain the right to pay $12? look i've got individuals in the office that by sirius at $11 a

month. they've got spotify. all sorts of monthly charges at some point, people say how do i get cheaper and what i want and how do i do it a la carte. but on netflix, joe, i like the pricing power they are building in i don't like the fact that they need $8 billion and how they amortize that on the books that's a work in progress. >> mario, before you leave, i want to talk to you about entertainment. that's a big thesis you have right now, too, in terms of what millennials and gen-z wants to see. you think it's live sports >> well, yesterday, for example, in new york, the atlanta braves which had an awful record last year are now number one in their division i want everyone to own a piece of a baseball team and you can do it by buying the shares of atlanta braves, becky. you have a 6 1/2-year-old, got to buy him five shares of a

baseball team. there's 58 million and dr. john alone controls it and he knows someone along the lines is going to want to own a baseball team and he's going to buy it for a $35 price in the next few years, it's an exit strategy. meanwhile, you have fun watching it and you're an owner. second one would be basketball third one would be what's going on in the gaming industry. but also mgm mgm has come down $31 because of a short-term air pocket. those are some of those we like. those of us who have been kentucky derby drivers, that stock has gone from $75 to $275. >> and you're here even though it's derby weekend too. >> that's okay we watch the races and all that. but the more important thing is that the supreme court is going to rule on a ruling called pass for professional and sports

protect act. if they change that, it would allow online betting if i want to bet the guy strikes out, i put a bet on my mobile phone. and that could be done in more markets. that's a game changer for taking betting and making it real and giving instant results to millennials joe is talking about. they'll need speed and have connectivity on that so it's a great world to be in >> mario, i have so many more things i'd like to ask you we're out of time. but will you join us in studio soon we want to talk about things >> we'll talk about pet parents too. >> the new etf. >> yes >> come very soon. >> never a doubt delighted to be here thank you. >> back to you >> thank you in the meantime, while you guys were speaking, elon musk just tweeting, quote, please ignore this thread unless you're interested in a tedious discussion about tesla stock then first it's important to

know that tesla is the most shorted meaning most bet against stock on the market and has been for awhile this coming, of course, after the now infamous conference call where he called one of the analysts bone headed and causing a lot of consternation thought the question was bone headed there were a couple of other ones analyst came on television and said this is not a financial -- this is a financial analyst call, not a ted talk there was a lot of jousting. >> i said his number one fan boy is you i wonder if you thought he made any mistakes yesterday or would you say elon can do whatever he wants? >> no. i don't think elon can do whatever he wants. in particular this analyst community for better or worse has been supportive of tesla and so when you -- if you lose that community and you do it with probably the wrong reasons which is to say it wasn't the numbers they were upset with it was how he behaved towards

them >> we talked about it. did he behave that way because there's something he didn't want to disclose or because he's sick of hearing short-term questions when he's building something long-term? >> i imagine it's the latter >> right >> and i imagine -- >> trying to hide he's going to have a capital raise >> that's my sense but i do think that on the margin i'm sure he could have done better. >> you give him total carte blanche with everything. >> no. >> yeah, you do. yeah he's going to mars he's going underneath the ground he's going hyperloops. >> he's moving humanity forward. even if you don't buy the stock, which you don't have to -- >> we've got to go chill. coming up, donald graham, chairman of graham holdings and former lead independent director of facebook's board will be becky's guest. and coming up, cocoa futures we'll talk to mars chocolate

about that and later, susan decker will share her thoughts on this weekend's shareholder meetings stay tuned you're watching "squk x"n cn bcawbo o the governor has declared a winter weather emergency... bcawbo o extreme risk of burst pipes and water damage... soon, insurance companies won't pay for damages. that is, not if they can help prevent damages from happening in the first place. at cognizant, we're turning the industry known for processing claims into one focused on prevention with predictive analytics, helping them proactively protect the things that matter most. get ready, because we're helping leading companies see it- and see it through-with digital.

xfinity x1 customers can "vote for the voice."g, i'm gonna vote for... unless, kelly clarkson, you're a coach, because, you know, that wouldn't be fair. [ whispering ] whatever. which artist will you vote for? vote for... ok, still know it's you. i just wanna vote! cast your vote during every live show. simply say, "vote for the voice" or your favorite artist's name into your x1 voice remote. come on!

welcome back to "squawk box," everybody. we are live in omaha, nebraska now for a look at the latest in the media landscape, let's welcome graham holdings chairman don graham don, thank you so much for joining us this morning. i'm thrilled to have you here for so many reasons. i want to talk to you about everything happening in the media right now. what's happening with "the washington post," what's happening with facebook. but let's start with berkshire hathaway you've been coming here for how many years and obviously you and your family have a special relationship with warren buffet because of his ownership in "the washington post. >> we don't want to bury the lead, becky. i'm 73 and i'm on "squawk box" for the first time in my life. so this is the biggest day of my life so far. >> it is a huge pleasure to have you here i can't tell you how much we appreciate it. >> i can't remember the first year i came to the berkshire hathaway meeting i came with my mother who died in 2001. i didn't comeas soon as i

should like everybody else but i'm glad i'm here. >> don, i want to talk to you about the media landscape. there are few people who have such expertise both in old line media but also in new media like facebook you served for six years as the lead director on facebook stepping down three years ago when you turned 70 because of the mandatory retirement age but you wrote a very spirited defense of mark zuckerberg's character just as he was about to appear in washington before the congressional hearing. it was a persuasive argument and one that made me sit back and think that i need to look at this very carefully. because i trust your judgment and obviously you've known him for a long time. just tell us a little bit what you wrote about mark zuckerberg. >> that's a very nice thing to say. people have every right to say do facebook, does apple, does google have too much power in our society and to question some of the things they've done

mark says he's sincerely apologetic for some of the things facebook did in the last three years. i know he's absolutely sincere but in many cases, this carries over and becomes personal. and i've known mark since he was 20 it was an odd coincidence of someone who worked with me had a daughter in his class who was also kind of a techy and she was a friend of mark's she suggested he look us up so he did and i've always seen and known as the father of four children, the youngest of whom is two years older than mark, that mark is a good, decent human being. conversation has to stop there i'm prepared to listen to anybody who says facebook shouldn't do some of the things they're doing. i'm not prepared to listen to anybody who tells me mark is a terrible guy >> one of the things that struck me from your post was that when you were lead director at facebook, you were actually the one pushing him to do more with advertising. not the opposite

>> well yeah mark, all the way back to the beginning of facebook when i first met him, he was 20 and i was in a harvard class exactly 40 years ahead of him. and when he told me that 99% of the students at harvard were on facebook i jokingly said there goes the crimson. meaning that the college paper which i'd been the editor on, facebook would have all the students so they'd be a more effective advertising medium and mark laughed and he said, well, yeah. i mean, if we wanted to get advertising revenue, we could. but we have bigger business to do we got to get to all the other colleges in the united states and then in the world before others set up and entrench themselves and make it impossible to compete. so he was not in the least interested in ad revenue and sheryl sandberg was. sheryl when she was hired as coo in 2008, i think, would push

mark but if you remember the early facebook ads, the three little tiny blocks on that page, they were the only really ugly element of the facebook page and i kept saying meeting after meeting and mark never paid any attention. >> another thing that struck me from your post is just what's happened obviously this is a company that's faced controversy in the past he's faced people who have been very critical of what he's done. what's his manner in terms of tackling a problem like that >> well, facebook is different from any other technology company i can think of google has a function in your life you need to find something you need to search on a map. you go to google amazon delivers things to you. apple sells you product. just think for a moment about what it would have been like for you for anyone watching this

program to try to run facebook could you have done it >> no. >> i could not >> no. >> not even close. i don't think anybody else could have built it. and i know what mark will do i don't know what the congressmen will do. i don't know what the government will do. i don't know what other governments will do. what mark will do is go back, think, bring in everybody on the team at the time of the facebook ipo -- remember that >> yeah, i do. >> so you remember how the extreme things that were said that facebook had done this or done that. >> and look where we are now >> but in retrospect, there was a serious problem. there were no mobile ads on facebook at all. >> but he jumped right in and developed it >> he personally led the charge on that. he put the top developers at facebook on mobile ad development. others saw that the top developers were going there.

they were then willing to go and develop advertising momentum and has kept it. >> i want to ask you about "the washington post" which you sold to jeff bezos. you are watching bezos be personally attacked by president trump. it's a little reminiscent of what we see in the post. when your mother was running it during the pentagon papers are you surprised by this? have you talked to jeff bezos about this was it something you were concerned about before you sold the paper to him >> no, i'm not surprised no, i haven't talked to jeff about it except in passing and yes, i considered it and i know he did. and kathryn graham who is received a letter from warren buffett 35 years ago saying i bought 13% of your company and neither my mother nor i had ever heard of warren buffett

even though we read three newspapers every day and she had the suspicions he became her principal business adviser. and he was there in some very challenging moments with different political challenges and it's very unusual for a president of the united states to be attacking particular media which he does all the time but it's not unprecedented >> don, we are out of time this may have been your first appearance on "squawk box," but i hope it's not the last we'd love to have you back again soon >> thank you so much >> we really appreciate it joe, we'll send the show back to you. >> becky, just tell don referencing our twitter stuff earlier that he -- i'm putting him down as younger than ralph macchio. did he really say 73 >> can you hear this, don? >> joe, i'm younger than gabe i

gabelli. let's mention that to mario. >> we did wilfred brimly versus ralph macchio. >> i don't know who those people are. >> you look about 20 years younger. i don't know you don't drink or something i'm not sure what it is. i thought newspaper guys were really -- >> i want to remind you, joe, that it is my wife who gave nick diogan his first job on "the wall street journal" and she apologizes to all of you >> thanks a lot. thank you for that all right. >> okay. nice to see you, don see you this weekend out there in omaha meantime, when we come back, your latest corporate headlines plus the president of mars chocolate north america. don't forget the jobs report coming up at 8:30 eastern time we'll bring you the numbers and instant reaction "squawk box" returns in just a memont

welcome to holiday inn! thank you! ♪ ♪

wait, i have something for you! every stay is a special stay at holiday inn. save up to 15% when you book early at hollidayinn.com monday on "squawk box,"

we've got your ticket to omaha for a billionaire summit three hours with berkshire hathaway ceo warren buffett. and he'll be joined in the last hour by berkshire vice chairman charlie munger and microsoft cofounder bill gates that's monday starting at 6:00 a.m. only on "squawk box.

welcome to holiday inn! thank you! ♪ ♪ wait, i have something for you! every stay is a special stay at holiday inn. save up to 15% when you book early at hollidayinn.com

show me the billboard music awards. the billboard music awards knows how to party.ook early [ cheering ] what up, dog? show me top artist. unbelieveable. i've got my whole family up here. look at my dad looking all sharp. with just the sound of your voice, xfinity x1 gives you a front row seat to the billboard music awards, including throwback clips from some of your favorite artists. the 2018 billboard music awards, sunday, may 20th. only on nbc.

it's feeling a lot more like summer finally this week which means that we're supposedly well past candy-heavy holidays and wanting these things it's true. valentine's day, easter. we're still months away from hal wean but candy, i don't know. it's a year-round thing for me joining us now is tracy massey, president of mars. i love everything. all right? but it's mostly chocolate based. which i think is good. because i like the other stuff too, the gummy based stuff i don't -- that's not good for me that's just pure sugar aren't there some -- can i at least think that chocolate has some benefits for me in some ways >> no. >> dark chocolate with some almonds or something >> what is the product that you

sell that's best for you or least worst for you >> i'm not going to tell you you should eat these because they're good for you >> but i still feel better eating chocolate than eating things from horse hooves >> many think they can live a healthy life and have an indulgent treat. >> what are you doing this summer red white and blue packaging these are going to work for me these peanut m&m's >> memorial day, july 4th. summer is pretty much the fifth season for us. our red white and blue products grew 50% last year very nice business for us. if you think about what you do, people treat themselves. they indulge they celebrate traditions. that's when people have our

products so the other thing is, m&m's were made originally for the military right? in 1941. that's how they worked >> i didn't know this history. >> what about cocoa? and what about commodity prices? has nothing to do with tariffs, i don't think per se but cocoa has been trending higher and that hurts margins, does it not? >> we have a basket of commodities. right? so cocoa's one there's many different commodities. it's difficult to manage but that's pretty much what i do right? our job is to manage the commodities to make our products as efficiently as possible that's why we like to manufacture our own products very big on manufacturing domestically we invested a billion dollars in the last five years. >> sit harder now with commodity prices where they are? is it hard on profitability? >> it depends what you do. it's to find others to offset that

that's the whole point of running a manufacturing business >> you said that stem helped your career. >> very much. >> and you've been at mars 20 years and risen to the top here in north america what was your degree sfl. >> chemical engineering. >> so you think that -- even if you don't use it, the rigors of stem education i think are -- i think it's really important -- >> i am not -- he's trying to critique. >> i was going to say liberal arts >> critique of my education. but does the chemical engineering come in play at all with this? >> you learn how to think. that's important otherwise you don't learn how to think. >> i started my career in a factory 20 years ago started working in a factory these products, they taste great and may look easy to make. they're really, really hard to make and if you want to stay in front of consumer trends are, you've got to keep innovating you need scientists, ma mathematicia mathematicia mathematicians stem teaches you to school

you think logically. >> night scoop it's never too late. >> you're going to teach him how to think logically >> you turned it around. anyway, tracey, thank you. appreciate it. and thank you. >> you're welcome. >> thank you for coming and thank you for bringing >> enjoy the products. coming up, we're going to head back to omaha becky's going to be speaking to berkshire director susan decker. that's next right here on "squawk box. back in a moment alerts -- wouldn't you like one from the market when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today. welcome to holiday inn! thank you! ♪ ♪ wait, i have something for you!

every stay is a special stay at holiday inn. save up to 15% when you book early at hollidayinn.com

this is a tomato you can track from farm, to pot, to jar, to table. and serve with confidence that it's safe. this is a diamond you can follow from mine to finger, and trust it never fell into the wrong hands. ♪ ♪ this is a shipment transferred two hundred times, transparently tracked from port to port.

this is the ibm blockchain, built for smarter business. built to run on the ibm cloud. all right. welcome back, everybody, to "squawk box. i'm becky quick live in omaha where we're getting ready for the berkshire hathaway annual meeting. last night i got a chance to catch up with warren buffett i asked him about berkshire's cash position. asked him how berkshire is putting that money to work >> well, it's a little less, but i would estimate that it's a little over 1$100 million

we bought more stocks by a considerable margin. which is usually true. not necessarily by a considerable margin. but we're usually a buyer in stocks and the first quarter, the apple alone you can figure it out. talking $12 billion or $13 billion or something like that so it brought down our cash position moderately. >> joining us now is sue decker. she's a member of the berkshire board of directors she's also the ceo of rafter a social media company she founded after a long career at yahoo. thanks for being here today. >> thank you for having me. >> let's talk about what you're doing here so early. board members already in town, already active >> i thought you meant so early in the morning. >> that too. thank you. >> i love being in the stadium where all the people come. i came in yesterday. the directors usually come in on thursday and we have a series of meetings with the managers, actually, what berkshire's all about all the leaders of the various

berkshire portfolio companies come and it gives them a chance to hear from warren and charlie. it gives them a chance to ask the board. there are a few meetings continuing this morning until about 1:00 and then everything shifts to the all about the shareholders >> with both ajit and greg being named as vice chairman -- co-vice chairman along with charlie munger, has that changed anything about how berkshire operates or how you see it as a board member >> i think yes and no. it really has changed nothing about how the company's doing or operating in terms of the incredible culture that's been put in place that really is very self-sustaining. but it also is the right move at the right time it gives both greg and ajit bigger operating influence it gives them access to see more of the operations and be responsible. it brings them to the board meetings which allows them a little bit more of first-hand

experience seeing some of the discussions about governance and capital allocation they already have much access to warren so it doesn't change that too much but it's also good for warren because he has fewer direct reports now. it gives him time to be focusing on capital allocation. it seems like the right step at the right time >> we just spoke to graham and talked to him about his thoughts on facebook, mark zuckerberg i woonder what you think about these. >> it's an interesting one in the offline world when we think about it

but online people don't know what information they have and how they're using it and what the consequences are of the way they're using that information and data. it's critical they have that information and the opportunity to target with it. it's a tough issue because the way it's worked historically is that facebook and google and yahoo and most of the companies have left that in the hands of users to control as opposed to the platform controlling. >> not so much you have some privacy settings that you can share don't have any option on any of those platforms that lets me say i don't want that. is that the right attitude >> i think that i guess where we're going is we're moving toward -- they started with with various privacy settings that are given by default and you have the choice of

whether you want dial those down or not but i think increasingly, the world will move to having to get more explicit consent and also building more safeguards into the system like not sharing that data into the platform itself. not sharing that data. >> andrew's made the point that a lot of consumers may not care. because they feel they're getting so much from it. ann winblad said the same thing. and i can understand that. but it's one thing what the consumers think. it's another when regulators from washington get involved particularly regulators from the eu which has been on the forefront of some of these issues do you think silicon valley needs to worry about regulation? >> i think it does need to worry about regulation i don't think that's the answer. but i think you have a combination of things that are eroding the trust in silicon valley you have the privacy issues. you have the fake news you have concerns about addiction to devices so many concerns that are

starting to become more prevalent in consumers' minds that if silicon valley doesn't take this on and work to restore that trust by doing things to help the consumers understand how their data's being used and help them to opt out, i think regulation may happen. >> sue, i want to thank you for your time today. i know it's a busy week for you, but we always appreciate it. thank you, sue decker. when we come back, the ceo of kraft heinz will join us for an interview we'll be rightac bk. xfinity x1 customers can vote, simply by saying,

"vote for the voice." i'm gonna vote for... unless, kelly clarkson, you're a coach, because, you know, that wouldn't be fair. [ whispering ] whatever. which artist will you vote for? vote for... ok, still know it's you. i just wanna vote! cast your vote during every live show. simply say, "vote for the voice" or your favorite artist's name into your x1 voice remote.

come on! welcome back to "squawk box," everybody. this weekend shareholders will be gathering to hear from berkshire ceo warren buffett we've been covering buffett and the company for years. one thing we've learned along the way, this is a billionaire that doesn't forget where he came from. if you want to know how warren buffett got his start, just watch. >> basically what you'd do is you'd go like this and then you'd slap it and then you just slide it right down >> a man now worth some $80

billion started out by delivering newspapers. >> when you let it go, just -- >> nearly 75 years ago all right. so you fold it >> that's it you want to get way down >> i'm a terrible paper girl today the world's richest paper boy is still at it this contest has become one of the highlights of the berkshire hathaway shareholders meeting. even bill gates gets in the game >> sorry about that. >> the yearly gathering showcases the 60-plus companies that berkshire owns and dozens more it invests in >> the documentary is called "warren buffett: investor, teacher, and aicon." it airs tonight at 10:00 p.m. on cnbc >> thank you, becky. we will all be watching that when we come back, much more news on berkshire hathaway

buying 75 million shares of apple in the first quarter and the jobs report is coming out in just a little over 30 minutes. we'll bring you the numbers and instant reaction take a quick look at the futures. "squawk box" returns in just a moment dow off about 37 points.

welcome to holiday inn! thank you! ♪ ♪ wait, i have something for you! every stay is a special stay at holiday inn. save up to 15% when you book early at hollidayinn.com with dell small businessout your technology advisors save up to 15% when you book early you get the one-on-one partnership you need to grow your business. the dell vostro 15 laptop. contact a dell advisor today.

breaking news this hour. we're minutes away from the april jobs report. >> we'll bring you the numbers, the instant analysis, and what it means for the markets, the economy, and the fed's next hike and buffett watch. we are live in omaha ahead of berkshire hathaway's annual meeting. warren buffett already making big news on apple. >> so you bought a lot more in the first quarter? >> quite a bit more, yeah. >> plus we'll bring you a rare interview with the ceo of kraft heinz. a special hour of "squawk box" begins right now ♪ good morning, everybody. welcome back to "squawk box" here on cnbc i'm becky quick live from omaha ahead of berkshire hathaway's

annual meeting we are watching everything that's been happening on wall street this morning. let's get a check on the market about half an hour before we hear what the jobs number is we've been watching the futures and we've been in positive territory but now the dow has turned down. now indicated down by about 25 points nasdaq is basically flat and you're seeing the s&p 500 down by just about three points. we'll be getting the numbers from the government in less than half an hour's time. if you take a look at treasury yields the 10-year right now at 2.13% check out apple. berkshire hathaway making another big investment in the first quart e. the company owned about 163.5 million shars of apple as of the end of the year. but he already doubled down on that in the first quarter. here's what he told us last night. >> you bought a lot more in the first quarter?

>> quite a bit more, yeah. >> you own a lot already so when you say a lot more -- >> well, it'll come out on saturday morning so it'll be reported and we're not going to be active now you'll see it went up about 75 million shares >> now, 75 million shares brings berkshire hathaway's ownership to 243 million shares of apple that makes berkshire hathaway the third largest investor number one is vanguard funds number two is blackrock. also we talked to warren buffett about another one of his big holders. they had sold down about 94.5% of their shares. here's what he said about that remaining 2 million shares he had in ibm holdings. >> okay. you had gotten rid of most of your ibm shares as of year end

you held a little bit. do you still have those? >> no. >> meaning you have zero ibm shares right now >> i think we have zero, yeah. the answer is almost certain a yes. >> so all of his shares of ibm sold off also general electric. there had been rumors recently buffett may had been interested in buying all or part of general electric he said that's not the case. and said if that was the case, i wouldn't be talking about it anyway so maybe it's a moot point to be asking questions like that. he did say i have nice things to say about john flannery. >> i admire him. he's got a tough job i'm very familiar with ge and we do a lot of business with them both on the buying and the selling side

so it's a terrific american company from way, way, way back. i want the company to do well. >> monday on "squawk box," we will be hearing more from warren buffett. he'll be joining us live in omaha. that starts at 6:00 a.m. eastern time plus charlie munger and bill gates. bill gates is a board member at berkshire hathaway they'll be sitting down for an hour with us 8:00 to 9:00 a.m. eastern time right now let's get to the news maker of the hour joining us is kraft heinz ceo. that came after the acquisition of the company by 3g and berkshire hathaway laters they acquired kraft foods. bernardo, thanks so much for being here >> pleasure. >> we don't get the chance to talk to you very often so we're excited to be able to sit down with you your earnings that came out this week were stronger than the

street had been anticipating that certainly knocked away some of the naysayers who had been after the stock for the last year or so but tell us about what happened. >> now expectations and what we have told the street since the beginning of the year. and that give us confidence about the full year. we truly believe the number wills get back on the top line our sales worldwide in all regions came positive except the united states. where you have one time that will fade away until july. that's pretty much in our capacity one time trade spending accounting rules that have changed it when you take this all away. plus the whole innovation that's coming to market and the commercial investments we're accelerating now to

believe you have a second half much stronger numbers in united states all that said, we're moving the company from a phase of integration to a phase of commercial investment and growth >> there have been doubts on wall street and i'm looking at a credit suisse analyst who lowered the rating to an underperform before the earnings came out this was last month. but his concern is something that i've heard echoed a lot on wall street. we harbor serious doubts about the management team's ability to generate sufficient product innovation that's when people look at consumer products, that's what they think >> i think the risk is important to see data. and to navigate. the big brands, they -- they're very positive and very important in the long run.

>> that's organic growth >> yes and a lot of white space and all that's happened. the same thing we're doing now with kraft brand right? with the family graded that you just have in family member but having the right product offering and really being related to consumers have the right relevancy where you did with the renovation of mac and cheese renovation of oscar mayer hot dogs heinz organic, heinz simply, philadelphia it's been remarkable the last two years. you think it's also true

that's the case of for breakfast in the beginning of the year that's the case of devouring frills and products. that's the case of heinz may o e that's coming to market now. those products, that's a case of food network partnership over good partnership all this is much more incremental before that's the phase the company is. >> are millennials buying your products they're the one who is have been skeptical of older consumer brands >> look, i don't think there is -- when i see the data, i don't think there is a skepticism about the big brands or not it's all about where's the product offering and how relevant are your consumers. for example, a lot of millennials came back. they know the brand. they trust the brand they grew up with the brand. >> they grew up with the brand but didn't want to give it to their kids >> exactly

so a changing portfolio. and a change in offering allow them to come back and say, hey, i want capri sun it's about the portfolio you're offering very few brands carry a negative brands like heinz, like kraft, like planters, like capri sun. you name it. kool-aid, philadelphia for sure. all this, they have huge history and connection to consumers. how you can bring this to life in product offering. and really reinforcing the equity that's the important piece >> does that mean you don't need to make any acquisitions to make very strong growth and headway in this company? >> look. we believe we can grow the business organically and it would be a combination of big brands that we love and that where you want to be now for 10 years and 50 years from now.

but those big brands they have the scale that allow me also to complement and invest in smaller brands to come together. that's the case of devour that i mentioned. that's the case of old that's good that's a case of classico. but they're already more than $100 million business, each one of them. so all these together, they create the portfolio right? that has not changed we continue to like big brands we continue to like business that can travel. and businesses that have synergies that we can extract to invest behind growth >> does your m&a strategy focus on smaller brands that you wrap into the company on acquisitions as charlie would call it or are you more focused on going after a big guy like a unilever or something like that some on the streets believe that's what you need

>> i don't think it's one or the other. right? we look at all opportunities internally in the united states and globally for us it's more important to find something that two plus two is more than four. we're disciplined on price with all this in mind and tweeting the business give us the right mind-set to really move fast when the right opportunity comes along. but i really don't believe it's one or the other >> so your sights are open on any potential categories at all times? >> if there would be more consolidation in the industries, if that is the cause, would like to be a force of that. i think we did a good job on the profitability side i think now we're investing between $250 million to $300 million. in commercial initiatives, innovation, working dollars in our brands

we are getting digital food service. all those commercial initiatives, we believe sooner than later we start to materialize results. with that, we do look outside to see if there is something that can compliment our portfolio that can make us better. >> unilever didn't work out. he didn't want any part of this. warren buffett, your partner has been opposed to hostile takeovers. he just stepped down from your board saying this gives kraft heinz the chance to do some hostile takeovers. is that a correct or incorrect assumption >> i don't think warren leaving the board really changed anything he already acknowledged he want to decrease his travel commitments. we're actually very lucky. i personally am lucky he stay with us for five years on the board. didn't miss one board meeting. read everything and all the details. so he's remarkable.

i think it's important the second part of your question being whole or not, our track record for decades with people that partnered with us has been to create really long-term value. right? so we don't see the point of not being welcome. >> okay, great bernardo, i want to thank you for taking time to lay out your strategy we appreciate seeing you >> thank you >> let's send it back to andrew and joe in new york. guys >> okay. thanks coming up, it is jobs day. after all this great stuff, 195,000 that's the estimate for the number to watch. for non-farm jobs. economists expect added in april. we'll get to our jobs panel right after the break. stay tuned bcquk x"n ching "sawbo o cn

because, when you really, really want to be there, but you can't. at cognizant, we're helping today's leading media companies create more immersive ways to experience entertainment with new digital systems and technologies. get ready, because we're helping leading companies see it- and see it through-with digital.

it's life insurance and wharetirement solutions toic? help you reach your goals. it's having the confidence to create the future that's most meaningful to you. it's protection for generations of families, and 150 years of strength and stability. and when you're able to harness all of that, that's the power of pacific. ask a financial advisor about pacific life.

♪

less than 15 minutes in fact, exactly 13 and change until the april jobs report. let's get to our panel now tom lee head of research at fundstrat global advisers. jeff rosenberg at blackrock investment institute and straight from the sean hannity show, university of chicago's booth school of business professor and former economic counsel of economic advisers chairman austan goolsbee you don't even flinch when i say that anymore >> i thought you were going to say and friend of mine >> close friend of mine. you know, i'm a huge admirer at the university of chicago too. i know you instituted that >> yes, you are. >> you instituted that anybody can come and speak there they're welcome. you don't muzzle someone that happens to disagree.

if it was you, you wouldn't let anyone on. >> come on i come on your show. >> and ramina joins us as well ladies and gentlemen, when we talk about these jobs numbers, here's what's important. number one, what happens with wage gains, i guess. number two, is there still an available pool of workers to satisfy these jobs and three, do they have the right skill set and what does the fed do when they see all this that covers everything, doesn't it >> it does we're going to focus on the noise this morning but the signal is this is a strong job market. it's important to remember that slowing in terms of the job numbers if we get that this morning, that may be a little bit weather related. it's really less about growth and the growth signals from the labor market report. it's much more about inflation and inflation risks. as you mention, the focus is

going to be on after we sort of digest the noise around the headline number. a little bit of looking at wages. and wages have been picking up and the bigger risk in the market that has been moving around is the inflation data rather than the growth data. i think that's the important point. >> tom, since you're right next to me, i can't ignore you. so what's it all mean in terms of what the stock market would like and with this tariff stuff happening in china right now, is it the jobs number today or is it what leaks out of the minutia meetings >> you know, it's a bit of both, right? we saw it in some of these regional pmis that these trade tensions are hurting confidence. i think that is something worth watching but on the wages side, you know, i think on the equities, they're trying to weigh two things one is, you know, tight job market and this rise in wages means profit pressure. but it's also finally seeing some reality catch up to companies which it's been a tight labor market >> ramina, in your view, what's

most important here today in the minutia of the report? >> i think what we're seeing is that the president's regulatory agenda and tax reform are working. business optimism is still at all-time highs but we are seeing tightening in the labor market and nine out of ten small businesses that report to the nfib have said they're having trouble finding qualified workers. that is concerning that could put some damper on the jobs numbers today i also think that unemployment may emain at the 4% rate i'm optimistic that more discouraged workers will join the rolls of those looking for work as wages are beginning to rise in this economy >> see, now you opened up the pandora's box. >> crediting the president >> so all right, austan. quid pro quo i guess we're going to talk porn stars or russia colieu slusion

the door's open. where are you going to go? >> i had a new year's resolution that i was going to be more positive and i wasn't going to fight with you, joe. and i'm going to stick with it >> okay. >> i'll just ask you the question >> andrew will take over >> you don't have to fight with me >> okay. >> no, no. >> it's all trump's fault. >> are you giving the president credit for this? >> when you say credit for this, the gdp report was 2.3%. which is okay but not that -- >> first quarter though. that's good. no, that's good for the first quarter. >> it's okay >> much better than recent first quarters okay there's going to be a second, third, and fourth quarter. you're not going to be able to use this >> joe, amp it down. >> all right >> look. i'm going to come to a conclusion that is in a weird way on the trump side. the growth rate of the country

is okay. we're growing around 2.5%, 2.8% on an annual basis that's not strong enough, i think, for the fed to commence the really rapid tightening and rising of interest rates i think donald trump and the trump administration don't want the fed to dump cold water over the whole thing. and i kind of think they're right. the fed, there's a danger here at least a yellow light that the fed is going to go too fast. and you see that with the yield curve tightening and i think that we ought to keep an eye on that. >> yeah. and signs in european, it's not like all systems go and the rest of the world right now >> the fed's not going too fast here there's a bit of a concern you're seeing curve flapping there. for such a big balance sheet and

what has been done to the premium. about accelerating the fed it's going to be much more about the longer term prospects for what that looks like if you see some wage change. >> we're going to get back to romina next month my idea is to only have you for the panel i don't know if you'd be open to that but she made so much sense >> i think you'll want to have a diversity of opinions. diversity of views >> okay. i just want the true opinions would be good. thanks romina. i'm kidding. >> thank you >> austan, hang out. don't leave. >> joeflake, did you say something? >> okay. >> okay we are going to slip in a quick break. but before we do that -- >> monday on "squawk box," we've got your ticket to omaha for a billionaire summit three hours with berkshire hathaway ceo warren buffett.

and he'll be joined in the last hour by berkshire vice chairman charlie munger and microsoft cofounder bill gates. that's mony arngt 00 a.m.ti a6: only on "squawk box.

coming up, it is almost time we're just minutes away from the report of the month. the jobs report. we'll bring you those numbers and the instant reaction when

"squawk box" returns back in a moment your company is constantly evolving. and the decisions you make have far reaching implications. the right relationship with a corporate bank who understands your industry and your world can help you make well informed choices and stay ahead of opportunities. pnc brings you the resources of one of the nation's largest banks, and a local approach with a focus on customized insights. so you and your company are ready for today.

welcome to holiday inn! thank you! ♪ ♪ wait, i have something for you! every stay is a special stay at holiday inn. save up to 15% when you book early at hollidayinn.com

we are seconds away from the april jobs report. take a quick look at futures of course all of this likely to change but good benchmark for us to check against. the dow right now looking to

open down about 44 points off. the nasdaq looking to open off about eight points right now and the s&p 500 looking to open off about five points. the 10-year, 2.931%. hampton is standing by with the numbers. >> 164,000 april non-farm payrolls increased by 164,000 jobs the unemployment rate is 3.9%. average hourly earnings increased just 0.1%. year over year 2.6% gain in average hourly earnings. april private sector job growth adding 168,000 new hires net revisions for february and march, net increase of 30,000. that 3.9% unemployment rate is the lowest since december of 2000 the so-called real unemployment rate, 7.8% the lowest since december of

2001 another key demographic, the black unemployment rate 6.6% the labor department says that's the lowest since they began tracking that particular piece of data back in 1972 job gains during the month of april, professional and business services up 54,000 manufacture i manufacturing up 24,000. that 3.9% unemployment rate was aided in part by a net shrinkage overall in the labor force to 236,000. the labor force participation rate, 62.8%. by the way, the job losses just a couple categories. wholesale trade down by just under 10,000 government employment down by 4,000. mostly at the state and local level. looking overall at the stats for the last three months, even with the lower headline number, average job gains for the last

three months 208,000 per month back to you guys >> okay. thank you for that, hampton. let's get back to our panel for reaction to these numbers. guys, we were watching the futures as this moved up i know those are the algos moving but we were looking like in the red. now moving into the green. your initial take? >> initial take? good report. i can't see the details, but good report in the sense you're a little bit disappointed on the headline number. but the wage number didn't accelerate and you got the tick down in unemployment rate. really is the longer term story that this labor market is very strong and potentially overheating but you're not seeing it in the wages yet. i think the market likes that. >> mr. leisman, what are you thinking this morning? >> you know, first of all, good morning to everybody there and to our whole panel i think this is a modest number. what i like about this is i like the jobs number getting more

towards where you're into a sustainable rate of course hampton gave us the three-month average with that big pop in february. but when i look at the number here, first of all, you got the lower unemployment rate with people leaving the workforce there's a lot of push and pull you have the unemployment rate declining. but wage growth is very modest i like the idea we're coming down to this level in the 150s or the 160s. those are good numbers for this economy given demographic growth here i also like the distribution of this construction up 17, manufacturing 24 those are good numbers and then information, 7. it's pretty widespread without any big area particularly pushing it so these are good numbers. i don't think they change the whole trajectory of the fed here i think it's almost certainly two and think about three by the end of the year. i think this number here keeps that idea on track

>> okay. tom lee is sitting right next to me >> i think this is a good report i think investors have worried about inflation and sitting on the pseudolisidelines. i think it helps risk on >> what's going on in chicago? >> this is a -- >> seems like a -- >> oh, we have two in chicago. we have rick >> my own personal view is if i look at the economy, i would be disappointed on every front. i think it's jobs light. i think the unemployment rate is exaggerated to the downside. i think u-6 is much more accurate i think on the wages not only were they soft, but we took away a tenth on the monthly number and we took away year over year down to 2.6% so from an economic standpoint, i think they should be better. now, from a market standpoint, i'll tell you a things most likely to happen you'll see a bit of the short

end start to drip away if you really take a step back, i don't know there's any type of need for hurry up federal reserve. that 2.9% a couple of months ago and the unemployment on wages was an anomaly there's nothing really going on there that i can see and from the equities standpoint, i probably think they ought to rethink it i think hot ser now better in every sense of the word. i don't believe in the reverse dynamics of the past what is good or bad for stocks with regard to the fed and the economy. i wouldn't be surprised to see the entire curve besides the short end start to drip away if you look before the number, five-year note yields started to dip into the low 270s. they were at 281, 282. that's it. rate wills retrench a bit. the european rates have been telling us that for awhile i don't think rates globally can go in different directions everything started to turn down

and it's contagious. >> all right what about romina? >> overall i think what we're seeing is that the economy continues to grow strongly but i do have some concerns about the labor numbers. i expected more job growth and i worry, perhaps, we're seeing a mismatch perhaps geographically and also skilledwise because we know so many businesses are interested in hiring. and yet they're having trouble finding qualified workers. we have to ask what is it going to take to take up some of that slack and allow these numbers to be even stronger and get some of the u-6 discouraged workers into the unemployment lines and then back to work. i think there's still a lot of opportunity for more growth. businesses will continue to make investments. building on tax reform and with the deregulation that continues to happen under the trump administration so good prospects but at the state and local level when it comes to housing allowing

workers to move to those region where is there's strong job growth that still needs to be fixed to see better results >> austan, i bet you were nodding when rick was talking. >> i did >> i think that's nice that you two guys are now -- i mean, this is -- >> we're buddies >> yeah. i didn't see you, but i could feel you nodding and sort of rick almost made the case for going slow by the fed. >> yeah. and look this is a relatively weak report you know even when i was in the white house, i used to say let's not make too much out of any one report but if this continues, i think the political dynamic for the president's going to be a little tough. because he sold the tax cut and they're going to hire people and raise wages. you see people dropping out of the labor force.

at the same time the reported profits are record breaking levels >> i don't know that we were ever together. austan will always make it political. if anything, the old counterfactual argument, if it wasn't for all the policies enstated by a president that respects business and capital markets more than the last several, think of no policies that were ever in my opinion fiscally expansion nary under obama. what i said doesn't mean we're not going to catch up. i think everything got a little too front loaded but i am disappointed generically we're not pulling people back in we will do that and that is what will drive wages a bit higher and draw them in without that dynamic, a lot of positive things aren't happening. >> but isn't this just still a

goldilocks situation at the moment >> for the fed >> yes >> very bullish. >> although the market's down again. but just 25 points >> wouldn't goldilocks be to have 4% inflation, have a lot of peop people, have the participation rate go back toward 65%. i think that would be much better dynamic >> uh-oh >> am i out? >> who is that steve? steve, come on in. the water's warm >> people are retiring i wish you guys would bring your -- >> don't start the you guys. talk to me talk to me >> okay, rick. okay, rick >> a are you stereotyping everybody that's a free market guy? >> i was talking austan. come on, rick. let me just -- okay. here's the thing we've talked about this a lot. >> the more he stammers, the more political it gets

>> the growth of the workforce is 80,000 to 90,000. when you get north of 150,000 people getting jobs, you've done very well. the trouble is we've had these huge numbers, 200, 250, 225, and they have brought some people back in. but the best expectation should be that you're going to do 100 given the demographics the only thing i was pointing out to you, rick, is the participation rate is going to be limited by the idea of people retiring god bless them they've earned it. let me finish, rick. >> 94 million people -- >> it's not a fallacy! >> some of them will work again. it's a fallacy >> let me turn you onto some math here. >> oh, turn me onto some math. give me a break. >> rick -- >> math is a turnon. >> when people are 35 years old, right, rick? >> yes, okay >> 30 years later, they turn out to be 65 >> yes >> 30 years later -- >> yes and more of those people are

working than ever before the problem is 34 to 55-year-olds >> that's right. >> i don't know what you're so angry about, rick. >> i'm angry because you make it political and you're -- oh, yeah you know -- >> i didn't make it political! >> you guys like to switch gears. >> okay, guys. guys >> this is insane. >> guys. let's -- >> this is insane. >> let's put a pin in this for one second >> it's a great number and you grade on a curve and i as an american don't like grading on a curve. there's only one place to be number one and we're not doing that >> guys, i have a different question for our panel >> people retire >> in the meantime, my question for the panel is if you watch the futures at this point, we are really -- talk about gol i did -- goldilocks. >> the stock market is smart this morning >> anybody on this table -- they're going to get a room.

but you guys, have a take on what's happening here? >> please don't. >> i think that we're going to end up better by the end of the day. interest rates are backing off here and the dollar is weakening as well. so unless someone feels that there's an underlying big inflationary fear coming out of this labor report, i think it's a good report. >> if that's a sign that 2.3% gdp growth is where we are, then you could see why the market would be a little nervous. and then you add onto it what might happen in china and i think that could explain >> okay. panel and panelists, thank you i know it got a little spicy but we like the spice. >> don't apologize we do. i would have let that go i just would have let each, you know, go back and forth and really let it hang out so you could hear it so you could hear the insults and everything else. cable. when we come back -- thank

you. one and all. when we come back, strategist jim paulsen standing by. we'll get his reaction you know what? mr. stagflation. he's so excited now because the report is kind of showing that anyway, look at him. he's smiling he loves it. check out the futures. we're now down what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley

welcome back to "squawk box. the april jobs report out just moments ago. employers adding 164,000 jobs last month my point would have been that this unemployment rate, that's the usa today -- >> that's the usa today number >> and the drudge report, boom 3.9% so you look at everything else, if you look into the, you know, under the hood, it might be disappointing in terms of wages and everything else. >> relative to expectations. >> yeah. and expectations but 3.9% is still a number that, you know, the average person on the street's going to hear >> 3.9% is -- you are beyond 2007 levels at this point. >> and african-american unemployment lowest ever recorded at 6.6%

you were here for -- you were actually interviewing robert johnson when he was on >> i was. >> did you see how much traction that got in certain circles, that interview >> that interview got a lot of traction i was criticized for some of the questions we were asking him >> but not by me actually, i did, but not out loud not on camera. joining us now, jim paulsen of the leuthold group i'm sure you got all your thoughts in order about how you're right about stagflation, right? this was not -- in your view, was this a weak report >> well, you know what hits me this morning, joe, is i guess after this report is how narrow the path is for a goldilocks scenario for the stock market right now. you know, i'm fascinated by the fact that the thing that's making bulls bullish is the same thing that's making bears bearish. >> true. >> that is, it's so good on main street and i think that really shows

how narrow the goldilocks range is for the market. because today you get wages that didn't go up and the bulls go, oh, boy. that means we're going to roar it's not just low, it's one of the lowest in history. and it's -- which kind of says the debate on overheat is not going to go away it's not going to back away. even though the wage numbers didn't accelerate. i just think it used to be when we had slack, if the job report came out strong, it came out great. if it got weak, it was okay. weren't a problem. now it's a very different situation. if the economy accelerates too much, it's a problem and if it weakens too much, it's a problem. >> you've got it coming and going too. without wage pressures your inflation side of the stag inflation story is not going to come around. so you've got the stag part on your side today.

but you don't have the flation part on your side today. >> look at commodity prices. >> yeah, yeah. that might be tariff related, right? >> even though the dollar's flat, you got the ism reports with all the price components going up still got the eci up that's why yields are up 60 basis points this year so it's not just wages that's one component and today you're right, but i'm saying it probably is not going to go away we'll be debating the same thing again next month at this time. because we're at full employment until the valuations are lower and can sustain that until yields are high and can sustain that, i think we'll continue to struggle with this yet >> okay. you know what you need to do you know how cramer came up with fang and everybody knows it? what's the opposite of goldilocks we got to think of some type of -- will you come up with something for that like, it'd be good if it was -- >> i don't know. that's a good point. hangover i'm not sure what it would be.

>> why don't you come up with -- >> for me after a night of goldilocks it's a hangover i don't know what it'd be. >> tina. there is nothing -- else or whatever. do you think the consensus is golding locks and you don't see it thanks jim cramer live from the new york stock exchange. his take on the jobs report and here are the futures now they're all over the place a small percentage down 60 at this point on the dow. ♪ cfa charterholders have proven themselves by passing one of the most rigorous exams in the world. demand the best. demand a cfa charterholder. cfa institute. let's measure up.

now you can, with shipsticks.com! no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. sending your own clubs ahead with shipsticks.com makes it fast & easy to get to your golf destination. with just a few clicks or a phone call we'll pick up and deliver your clubs on-time, guaranteed, for as low as $39.99. shipsticks.com saves you time and money. make it simple. make it ship sticks.

let's always put investors' needs above our own. as investment management professionals, let's measure up. cfa institute.

to the new york stock exchange jim cramer joinings us now the futures are moving around on the job number, jim, once again, i think that the china tariff trump trade tariffs, i mean, that probably, at any minute, that could change the dynamic. this is sort of a -- it wasn't

that much to go on on this jobs report, was there, in your view? >> no. look i look at it and say tell me something else. what i'm worried about what everybody is worried about is the united states sticking by a $200 billion trade deficit that has to be changed. and if so, then these numbers don't matter what matters is what happens with secretary mnuchin what does larry kudlow say i think that everything is in the balance. all the industrial jobs are in the balance. yeah, i mean, this is the labor report that doesn't matter pra pretty amazing. >> are we in a golding locks situation? >> not if world trade slows down and manufacturing jobs are up here mining jobs are up i'm not as bearish as other people i believe we're going to get a deal i think the deal will be something like the chinese

blinking on steel. they don't want to make steel anyway nobody is positive, joe. and i begin to think that's going to be wrong. nobody is positive it surprises you >>well, happy may 5th. i know you'll sort of like patron saint now. >> i want to sell the most corona in brooklyn. >> it's one of my favorites. >> me, too. >> see you in a couple of minutes. later on cnbc, don't miss an exclusive interview with san francisco fed president john williams i looked at him out of the corner of my eye, i thought it was jeff rosenberg. and rob kaplan we'll be right back. it took guts to start my business. but as it grew bigger and bigger, it took a whole lot more. that's why i switched to the spark cash card from capital one.

with it, i earn unlimited 2% cash back on everything i buy. everything. and that 2% cash back adds up to thousands of dollars each year... so i can keep growing my business in big leaps! what's in your wallet? with dell small businessout your technology advisors you get the one-on-one partnership you need to grow your business. the dell vostro 15 laptop. contact a dell advisor today.

no one thought much of itm at all.l people said it just made a mess until exxonmobil scientists put it to the test. they thought someday it could become fuel and power our cars wouldn't that be cool? and that's why exxonmobil scientists think it's not small at all. energy lives here. people don't invest in stocks and bonds. they don't invest in alternatives or municipal strategies. what people really invest in

is what they hope to get out of life. but helping them get there means you can't approach investing from just one point of view. because it's only when you collaborate and cross-pollinate many points of view that something wonderful can happen. those people might just get what they want out of life. or they could get even more. writing about buffett is a industry itself. >> buffett, making of american capitalist. >> there are more than 75 books in print with more than 2 million copies sold worldwide about him. >> here is warren buffett way. the newest edition.

>> his partner charlie monger. or berkshire hathaway's strateg of value investing. >> it's about candor and operating a publicly traded company. >> and hudson book sellers ross does about 20% of his yearly business in about three days over the shareholders weekend. >> we have a whole array of books over all the years buffett and monger-related titles. >> that was a sneak peek of a special documentary airing tonight on cnbc called "warren buffett" investor, teacher, icon it premiers tonight at 10:00 p.m. eastern time. becky spent a lot of time on it. it's worth a good watch. you don't want to miss this. warren buffett will be live on "squawk box" for three hours bill gates and charlie monger will join in on the conversation now part of the conversation will start at 8:00 a.m. eastern

time a quick final check on the markets after the job report we're at 3.9% unemployment the dow is off about 29 points. >> are you going have a few drinks will you have a cocktail tomorrow night >> i'm headed to omaha. >> will you? >> i might have a cocktail. >> tomorrow evening. >> i'll have one for you. >> okay. happy cinco de mayo. >> make sure you join us on monday with the big interview with billgates and warren buffett. "squawk on the street" begins now. >> good morning. welcome to "squawk on the street." i'm david faber with jim cramer. carl quintanilla has the day off today. we take a look at futures. we're looking at ever so slightly, perhaps, a lower open after what was tha