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 that yo yo move

yesterday. we'll talk a bit more about that european markets, let's take a look at how we're faring overseas now you can see largely higher ten year note yield seem to yield came off a little bit with the jobs number, i think didn't we? yeah we're hanging around where we've been to the road map this morning it starts with that employment number employers step up hiring in april. the unemployment rate falling to a nearly 18-year low stock futures are a bit lower. you saw that ahead of the open buffett backs apple. despite preearnings worries. berkshire hathaway buying an astounding 75 million shares of apple. that's about $13 billion worth of stock in the first quarter. tesla's ceo elon musk takes to twitter defending that contentious earnings call performance. and we'll discuss that first, we'll start with the jobs

numbers. 164,000 nonforeign jobs added in april. that marks a second consecutive month of payroll that came in below expectations manufacturing, though, one of the bright spots up 24,000. the unemployment rate dipping to 3.9% that's the lowest since december 2000 the labor force participation rate also fell earnings up 2.6% year over year. again slightly below consensus give me your take away, mr. cramer. >> i think that there are certain lines that people say wait a second if we have a trade war. industrial mining will go down dramatically what will happen we'll start creating far fewer jobs. and the fed can't raise the way the banks they can it goes to two rather than three. i think, david, this is not an important number i love labor report numbers. what matters is secretary mnuchin and peter navarro.

>> and lightheizer. >> yeah. intellectual property no longer supporting, you know, their technology advances by the state. >> they want to wipe out the 2025 plan. >> right. >> and i don't think, david, look, i don't know i don't want to rule out anything given the fact that those who thought that north korea would not be talking with south korea. and we can ever pull out or some of our 28,000 soldiers that's remarkable. so maybe something remarkable happened if larry kudlow is listening, maybe i'm playing, i don't know. we need to know. i haven't seen anything like this since the iraq/kuwait war you know, uwait/u.s. war you know, remember -- >> yeah. 1990. >> yeah.

xliii. >> yeah. on friday -- >> xli. >> people get worried we might go to war. on monday we don't friday people worry there's going to be some attack. we're like that now. it's another lousy friday. >> i want to talk about you about the market let's get back to the jobs number. >> yeah. take a look at the lines. >> look at the lines anything on average earnings >> 4.1%. month over month. >> if you're jay you say listen, you know, economy is slowing enough let's rethink the idea we have to do three. and i think that's positive. it means that the labor inflation number is not going to be what does it in this quarter all the conference calls. we kept hearing about is raw costs going up i've been trying to get with ceos to say that's no longer acceptable if it's resin, it's going to be sold solved if it's trains, it's going to be

solved usually csx is the problem. >> okay. >> if it's drivers, you know, there will be drivers. they will go to those jobs you think $90,000 as a driver if you do it right. the executives that run the consumer packaged goods have been ill informed about how to tell their story i've, trying to get them to understand how to tell their story and they don't know. they're just not proficient in how to explain the story about inflation. >> in terms of the market story, beginning the what we described as volatility all though more typical volatility it began when we started worrying about wage inflation from that jobs number what was it back in february. >> yeah. >> and now we don't have any. >> no. because march was a very weak month. because of weather april was a weaker month because of weather if you look, david, it was interesting. employment changed little. where? retail trade we did have a spike in retail. i didn't believe it.

construction has -- i'm not saying ground to a halt. but the midwest had snow last week. >> right the weather patterns are playing havoc with the numbers weather played a big role and construction should have been higher, i think. >> you do. >> yes. >> the market itself, jim, yesterday go back here jpmorgan was the seller in 3.4 billion in futurers at 5:30 a.m. and the seller ended at 11:30 a.m. >> okay. the spike has been active lately. >> somebody had it because the market spiked at 11: 15. someone knew that the guy was almost finished. we had thor hareversal down. >> my point is if they're selling in futures can it move the market >> that's nothing.

>> nothing >> nothing. >> that's going on in the stock market now there's no liquidity nobody is stepping in to buy nobody seems to be a believer now. we can look at earnings this morning and whatever. >> i have nothing to say i'm stunned. do you know how many people i asked about the reversal somebody heard secretary mnuchin gave a thumbs up that's not substantiative. it was the program we haven't seen anything like this since renaissance used to come in at the beginning of the quarter 25 years ago. >> i think it's worth sharing with people. >> sharing is caring, david. >> again, there's a market where 3.2 billion futures doesn't mean a thing. that's not this market. >> there could be a firm in the old days that could take the other side goldman could say we'll take the other side and work through it. >> yeah. that's incredible.

no liquidity, jim. >> if you have $160 stock it goes down 15 on that people say there's something wrong. no you came up with -- you solved the puzzle. >> that's what we try to do here our producers want us to move on to apple. >> they didn't tell me because they liked my riff. >> they did. i liked it, too. we want to discuss apple after warren buffett told becky quick his company bought $75 million shares in the first quarter. that adds to more than 165 million berkshire owned at the last year. here is what warren said to becky. >> i liked what i saw, too their surprises, i mean, it's 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 gap.

it's an amazing business here is a company whatever the earnings are $60 billion or whatever and you can put their products on a dining room table. i mean, that's not the way it used to be in this country. >> he loves apple. i think it's fair to say he loves apple. >> yeah. that's a huge amount to buy. remember what apple did during the quarter. apple got smashed. analysts said it's got to be a bad quarter. he doesn't think about the quarter. he think abouts this is a consumer products company with 99% satisfaction when you have something like that, you buy the stock. he doesn't look at the components he doesn't look at the mosaic. he says everyone is so afraid of a company that it sells at 14 times earnings with the revenue stream and, you know, he does something he thinks young. every kid he knows has one and they would never use anything else it's good enough for him

it's not good enough for the people who listen to the analysts who are try to count the number of rf. >> is that going to continue >> i think they threw in the towel. tim cook basically did not comply with what the story was. >> right. >> didn't comply with the story. some of the annalists were negative, by the way some were not being listened to by elon musk. >> yeah. we'll get to musk in a moment. >> apple, of course, did move up did actually respond. >> do you think that's right >> do you think that's right the stock should go up $2 after warren buffett said he liked it? >> i do. >> i would put him in a different category than an analyst. >> yeah. >> the greatest investor of our

lifetime buying more berkshire, itself, we don't talk about enough as a company as one of the largest companies in the country has an enormous amount of cash. he did put some to work but he's got a lot sitting there. >> you know, david, there was when you have a guy like buffett, he has to buy into weakness or else he moves the stock. that report you gave about the futures, it tells you, look, you got to use the futures if they're going down to buy. he must have been there underneath i thought that the company was in there underneath. he must have been bidding $1.65 the whole time. >> maybe. >> he's pretty good. >> not bad not bad. >> to get out of ibm entirely. >> take a listen to buffett

about no longer owning any ibm at berkshire. >> okay. you had gotten rid of most of your ibm shares. you held a little bit. do you have still them >> no. >> you have zero now >> i think we have zero. yeah the answer i'm almost certain is yes. >> didn't give a reason. just that's it we're done with it there was time when they were the largest single shareholder of ibm. >> stunning. stock hasn't lifted after a decent quarter with a good guy but that was damning it was basically i've got out of that one because it was a bad one. >> it's funny he is still willing to compliment ge even though again, you know, there were the rumors around they weren't true. as i reported, there's certainly the possibility that as ge

continues to review its businesses, would berkshire have some interest in signing a confidentiality agreement to take a look at ge capital? you can imagine that it wasn't about him buying a lot of stock he was complimentary of flannery. >> of flannery i think that, you know, no one talks about jeff anymore i wish the surprises would end the ml surprises need to be put behind him and i feel like john i think is trying to do a good job and did turn down -- we never talked about that showing me that the division he lead created a lot of value. and that's really important. but, you know, no. he is not in there and i think there's going to be a lot of people saying this was the big guy i thought was in there. that was something, by the way, with musk. people keep telling me isn't there someone out there who is

going to say here is $2 billion. >> right. >> and that's how he can be so arrogant. >> we'll talk about musk after the break, jim i wanted to head to the break. before we do that, though, a programming note a new documentary is going to premier tonight called "warren buffett: investor, teacher, icon." >> elon musk is defending tesla in a tweet storm and the road ahead for microsaft. >> are you kidding me? >> yeah. i have to try to get in. monday at 11:00 a.m. >> another look at futures here more "squawk on the street" for you. we open about 16 minutes from now. back after this.

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mr. elliot, what's your wiwifi?ssword? wifi's ordinary. basic. do i look basic? nope! which is why i have xfinity xfi. it's super fast and you can control every device in the house. [ child offscreen ] hey! let's basement. and thanks to these xfi pods, the signal reaches down here, too. so sophie, i have an xfi password, and it's "daditude". simple. easy. awesome. xfinity. the future of awesome. >> we have no interest in satisfying the desires of day traders. i could careless. >> elon musk on that contentious earnings calls with analyst that sent tesla shares down in part it wasn't all because of the

conference call. he's back this morning with a tweet storm. he tweeted please ignore the threat unless you're interested in a tedious discussion about tesla's stock. tesla is the most shorted stock on the market and has been for awhile the two questions i ignored on the call are analysts who represent a short seller i don't know if that's true. he went on from there. we made a lot of it yesterday. not to get lost is, yes, it was somewhat contentious it was unusual it was the underlying performance and the business and his unwillingness to perhaps entertain some of the questions. he already answered then and there were numbers of reasons he choice to call one question bone headed and the other one about the model three he said tesla has roughly half a million reservations already despite no advertising and no cars in showrooms. it could take two years to

satisfy existing demand. we were talking about the underlying fundamentals yesterday, jim, and the market reacted. >> that's interesting. i wanted that number and there was a fit he didn't give it to us. it was a question he dodged. i thought both questions were fair my point, when i said i understand what musk did is that musk doesn't want to play ball and his comments about don't buy my stock involves those were the best comments i've heard from a ceo. because a lot of people stopped me on the street and said what do you think of tesla? finally i have an answer someone stopped me and i said don't buy the stock. even he said don't buy the stock. that was very welcomed it was a welcomed thing. because then i don't have to say i think you shouldn't buy the stock. then people say musk is a genius now i've got it all covered.

>> did you happen to hear bob lutz later in the show yesterday after you left who has been negative on tesla and continues to be talking about what he believes will be their inability forever to make any money on these cars? >> forever >> yeah. >>well, look i don't know what he said. that makes sense to me i'm not going to criticize lutz. he's a car guy. >> musk is one of the great visionaries we've had. >> yeah. >> if you criticize musk, people think you're criticizing progress and the future. that's a very hard to thing do people periodically say here comes bmw with the engine. but not a lot of here comes chevy volt when you see a tesla on the street, what happens >> wow music thinks we'll be working for robots in not to distant

future what matters yeah. >> we have a 5% chance of surviving ai he's more optimistic than walt disney. >> he is he has a plan to provide all the energy in the country in a facility in northern colorado. >> he's moving to mars before the machines take over. >> yeah. >> he's moving to mars all right. next jim's mad dash and count down to the opening bell we have nine minutes to go take a look at futures there they're worsening this morning as we discussed, there is very little liquidity we'll talk about that on the other side of the break. we have more "squawk on the street" for you. this is a tomato you can track from farm, to pot, to jar, to table. and serve with confidence that it's safe.

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time for a mad dash for a friday about six minutes until we get set with trading. >> ford will not be pretty today. i'm going to quote a bear which does good work around basic american industry. ugly quarter labor productivity charges david, they have some sort of natural gas plan they have a lot of trouble with. and, you know, this is an engineering construction company that is really the tiffany -- by the way, a good reporter and the awards are mad going forward. this is what we would have

thought at this point a lot of infrastructure it's not happening again, another sign that infrastructure may be that the economy is slowing this is, you know, you can make actually a read through there are fewer bigger projects. people have to aware that it's not an admiration. it's the last one of these and, you know, chicago cpi has been doing great. >> yeah. >> but, david, this is a a bad sign for the economy. >> is it i mean, you don't think it's floor specific >> i thought that the decline in orders from the other guys us winning orders they were not. >> i want them to make sense cap x you can write it off wright away. >> i couldn't agree more it's a big construction project. there's a big project.

almost like the early stage commodity cycle. obviously people are boondsing engineering construction at this point in the business cycle that we've seen in terms of mining stuff, this is what should be going up it was the last good one and considered no good i want to know if there's a read through to ge. >> all right we got an opening bell coming up on the other side. earnings from alibaba and the latest in xerox. >> newell. >> yeah. whatever you want, jim opening bell after this. into retirement.

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i just feel, david, you can knock the stock down so easily if you want to people at these companies don't understand that short sellers, guys who can take the stocks down they're not savvy atall. nasdaq carbon blax black a cybersecurity provider jim, what changes the lack of belief, for lack of a better term, among investors where when they see a good quarter they don't really jump in and they just don't seem to be willing to commit to things right now and so to the point i was making

3.2 billion futures can move the market yesterday as appeared to be the case. >> like the flash crash, the february vix sell-off, again, drove away a lot of people and i think people there is no one who stands up and says, listen, we should buy stocks. it crushed a the lot of people $93. >> yeah. $127. 50 deal that could happen. it's beyond that. >> have you noticed t-mobile stock? what it's done since the deal was announced? look that up, if we can. >> the quarter was good. >> yeah. and now it looks like, you know, now you want to hope the deal breaks down. the stock goes up.

what happened there? >> david, there are no when the market is looking ugly, everybody follows that trend we have to get real oversold and you bounce like we did yesterday when the sell program you mentioned is over. when it's good it's so good when it's bad, it's so bad apple is up on the comments of warren buffett it's $13 billion or so, i think. not much else up al alibaba reports earnings they were strong. margins were a built worse for the quarter. guidance was good. i'm giving you real value here. >> you see the monthly average users on mobile were good. this is a good example the stock was up and it was met with sellers this is my theory.

if there's a stock up big, the exception of medicare donalds. >> -- mcdonalds. that's a chance to get out without ruining the stock. so often you ruin a stock. >> yeah. you have to sell when you want to get out. >> yeah. your best chance to get out. and, david, i got to tell you. the thinness of the market makes me nervous either way but if you get min knew shnuchi back and saying there's no deal, then i think a $10 billion sell program takes you incredibly much lower than i would like to think. these companies have buy backs they don't know how to run the buy backs. >> what changes the narrative, then, for this market when we get china? >> that's what it is >> the deal with china and what you'll find is somethieverythin

is down that was so violently moved if there was a deal from china. >> reports out of china, i don't have a sense what is going on, do you >> no. and the president should he doesn't seem to care that much about the market. he has pole ratings. >> president trump did tweet about the jobs number saying we have fallen below 4% to 3.9% am i the wicked witch or the good witch >> i don't know. depends on the day. >> anyway, it's greeted with nothing because of china people are afraid on sunday night. that's been the big problem. sunday night you want to watch a ball game. you have to watch the wires.

if xi says, look, he said she said situation. >> see charlie victor? >> yeah. >> holy cow. bad number. >> yeah. that's another one charlie victor cbs, we should take a look because it's defying the tape in media, too stocks up 2.8% or so. >> did you see all the references to the over the top and how all the analysts could do is ask about over the top it's amazing. >> yeah. >> it's become -- >> the first quarter revenues were up sharply. 13% well above. >> good numbers. >> the adjusted eps number was up guidance now people think looks conservative but, of course, the larger question is what about viacom and cbs? where does it stand?

what's going on? you might say that to me. >> no. i was going to ask you. >> and i'll tell you there's not much going on now between the two companies when it comes to exchanging proposals about a potential deal it remains moonves or redstone she wants backish in the number two role my understanding they met recently moonves was in new york for the earnings report. but i'm not sure much progress was made and the continued dance. >> he puts up great numbers. >> yeah. nobody cares. >> that's not true. >> stock is up. >> $1 and change come on, that's a good number. and a good over the top

strategy millennial's love chicken wings. tyson told me millennial's love protein. think about it dominos wing stop what is the commonality? millennial's don't like to have to spend money on liquor they like it delivered what >> i don't know these things they don't like -- they like their liquor delivered >> they buy the lick coquor -- >> they have the wings delivered. i thought you said they had the liquor delivered. >> they have the wings delivered and they have the beer at home you said liquor. now it's beer. which is it? >> you're more liquor. because the coors numbers were bad. coors versus coors is a great money we should do for mad money. kors is great. coors the beer is declining. >> the problem is millennial's

not drinking beer. >> no. they like craft beer and they like mexican beer. >> oh. you know they like mexican beer. >> i can't stock it. >> the wing stop is an amazing story. remember the millennial's, yesterday among the cruz lines. >> yeah. mission del rio. you had him on mad. >> yeah. we raced cars. >> look at that wing stop. yeah millennial's like cruises because the rooms are so inexpensive. >> cruises, chicken wings, beer at home, cbs over the top. >> everything you said is right. you have 100% grasp on the millennial's 100% i don't know how you did it so quickly. boy, you just did it. >> i don't have 100% grasp on xerox. >> no one does, david. >> oh, my lord i was telling everybody about this crazy situation in which xerox had given up control completely

the ceo was out. giving control of the board. not happening anymore. last night at 8:00 p.m the expiration of the agreemen for the settlement came and went without them having the settlement signed off. >> okay. >> fuji and their lawyers want the judge, remember who enjoined the deal a it gets complicated. they wanted a stipulation from him. even though, frankly, the settlement didn't require court approval now we're sort of stuck somewhere in this weird nowhere world where the current board remains. jacob son jacobsen remains. >> how can he remain >> we don't have a date for a meeting. it's unclear what it's going to happen on xerox. the stock went down a lot since they announced the change in the

board. some people saying maybe it's because fuji would have you believe because people didn't like the new board composition the other side would have you believe because they don't fully understand the fact once we got in there, we'll sell the company and do everything we can to dissolve that with fuji. and sell to the highest bidder. >> i don't have answers for you. i spent a lot of time on wednesday talking about the historic nature of the change. >> the corporate governors. >> yeah. can you give me a read on newell. >> it's a big deal. >> yeah. >> big sale. did you happen to read the star board report one of the endless reports issued a few days ago. >> it's clear the gun is to his head. >> that's a big sale that newell

is undertaking. >> i'm absolutely thrilled in the direction of the company but legacy rubber maid products being sold. >> newell is up 4.5%. >> it should be. >> it's not too often that stock had a positive. >> they had a great price. he shows what is willing to do what is necessary. very positive. >> stock is up. >> yeah. a lot of people are knocking it. people feel it's gotten too low. some of of the bio teches got crushed yesterday. >> yeah. i think there's deals in the works. people are interested. there's other good action. activist reported a quarter when

it wasn't. nasdaq is trying to hold. >> there was some questions whether everybody was playing forth knight. >> right. >> the opportunity for my son to play it and he would take it to the exclues sion of all else and his cohort, you like to use that word, are all on it, too. if you're a teen boy, that's what you're doing. >> it's worth watching that. again, i'm seeing the cloud kings trying to stabilize. >> okay. >> i'm seeing apple leading a good market on nasdaq. that's all very positive in terms of the weekend coming. >> to bob on the floor for a little bit more on what is moving things this morning bob? >> good morning. a disappointing open because the jobs report was golding locks.

the headline number 163 was about in line with expectations. wage growth in line maybe below expectations that's good for the market you see the muted reaction we got today. take a look at the sectors banks down there were attempts yesterday in the middle of the day to buy semiconductors and industrials and consumer staples all of which acted terribly for the last couple of weeks not much follow through on that. utilities up because bond yields are to the downside. we have some collateral effects in the market from stronger dollar we've had it for a couple of weeks now. it's wreaking havoc in emerging market the dollar is up today and the emerging market stocks, turkey, poland, indonesia, mexico are moving to the downside many down 4 or 5%. there are etf for all of them. emerging markets getting hit

problem for the markets, the bears have got a lot of arguments. the traditional bear arguments around since the beginning of the year, the fed is tightening. we have china trade and the mueller probe and iran we're entering a weak seasonal period all this has been around for awhile what is making the bears arguments more potent, they've added two new arguments. this is the crux of the bull/bear debate how much is global growth slowing? that's the crux of the bull/bear debate now if you can answer that question, i can tell you where the stock market is going to be going. the second is how hot is inflation. there are some signs europe is slowing down the recent numbers with europe have been a little slower. a lot of debate about how long that's going to last here. as a result of this argument, global slowing, the earnings growth story has much less traction it wouldn't matter if growth was strong earn could slow a little bit iss earnings are better, guidance is

better, capexis better the slow down story is lending less weight to this. there are people trying to counter it if you look at what has been going on recently, it's an issue. goldman sachs was trying to counter some of the arguments saying the global growth outlook is strong. technical head winds are likely to ease. again, the bears have the upper hand they better get a response, though the global growth story we've been pointing out how crumby the market has been. the descending triangle. we've had a period of lower highs in the s&p 500 ever since the market hit new highs in the early part of january. that's a descending triangle there. the sub 4% employment number, in theory, that's good. we have rarely seen a sub 4% employment number. since 1990 there's been three

months april, september, and october 2000 and know what it was, folks. the dot-com bust three months later the s&p was down unfortunately three samples in the 30 years, i don't think that's a good number i would point out how rare it is to be below 4% finally, quickly, carbon black a lot of interest in cybersecurity. terrific pricing for that. that'll open at 10:45 eastern time right now dow is down 20 points >>well, off the lows with the s&p down .1%, bob, from stocks to bonds we'll hit the bond report from rick santelli. >> thank you, david. we slipped under the aggressive range we've been defending with the downward range bias on all the fixed income you see it on two-year let's keep it in perspective you know, it could be a golding locks number for investors it probably isn't for the economy in a macro sense

remember, the two might grind but they're not synonymous look one week of tens. initially didn't like the number come back a bit. i saw 2.91 we can clearly see we're slipping below the first high of the year at 2.95 it's key especially for a weekly close. it's very impressive how yields are holding up given the notion that i don't care how you slice it it wasn't a number to write home about. we'll have ed on in a couple of hours and discuss it from the macro economic perspectives. overseas 24 hour of the bund didn't like the number it's 53 basis points it means we're at 240 basis points on spread basically 30-year wide 29.5 year wide it's unchanged on the day and the week just like our short end of the market that's the bunds, of course, if you look at the dollar index

stellar performer every which way. initially low volatility never really went down it went up it went up it's hovering at the best level since the 27th of december and the euro let's look at the euro the mirror image of that look from early december it's 12.27 the weakest it's been against the green back keep in mind, we were at 121.30 last week. the dollar is what you want to watch and it's above some significant resistance back to you. >> thank you, rick by the way, people like the quarter. >> yeah. >> yeah. coming up go pro founder and ceo nick woodman the company issuing upbeat guidance and lifting the stock 11-time world surfer kelly slater he wants to turn surfing into a stadium sport. we'll be right back.

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there it is. the shake shack shaking it up this morning, up almost 20%. >> a series about negative comp store sales. and they did a positive comp 1.7. sales increased by 9.6 they're adding a lot of stores people like growth and so what i -- my conclusion here is whatever funk was really hanging over it is disputed because the average annual sales volume for total domestic shack, $4.1 million to $4.2 million that's very good numbers >> that's -- we're talking two-year highs >> these are really good numbers. >> back to the ipo, and it was obviously a lot higher >> a lot of restaurants doing well domino's a lot of these doing very well this is a terrific number. congratulations to the team there. it's finally grown into its market cap and, you know what? it's back and the shorts have to cover it >> we'll have stop trading with

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there that they could possibly sell themselves. i think that's a very -- you mentioned it in the break. i'm doing a switcheroo >> they had a mutual partnership that started in '16. that's been terminated and jana, the actvisit fund, owns 9% of pinnacle trying to engineer this deal many think should happen conagra once tried they've want too high a price is what i've heard. >> don't have warren buffett on the board anymore. what it does seem is they'll be more aggressive. pinnacle foods is one to watch i was going to suggest we talk about skyworks because it's a company that had a good quarter. all the companies connected with apple had been down. this is the one to watch >> key to the market >> this one can turn up and what people are going to be saying is, you know what? we really and truly have the bottom in the smh, and i just think that we're just -- kind of

good news. the bearish sentiment is really, really turning and it's all trump tariff and trades. >> what's on "mad" tonight >> i have axon, which is the old taser on and fireeye which has new management cybersecurity is very, very important. and rick smith has some news apparently, and i don't know, david. this was a very interesting and much harder week than i thought it would be. just a lot of stuff i didn't expect, and apple threw everybody off. >> yeah. >> everybody because all the analysts truly felt -- >> try and get a little rest this weekend just a little. >> no, i have to work tomorrow >> i'll see you back here monday i'll hopefully be well rested. more on what warren buffett told our becky quick keep it here e rhythm of the wor.

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and mark santoli carl has the day off half hour into trade and we've made up for some early losses. the nasdaq goes positive apple helping things out on news from becky quick that warren buffett bought more apple shares dow about to go to the flat line our road map for the hour starts with buffett's big bet berkshire hathaway buying 75 million shares in the first quarter. what else he told becky quick. and a deep dive into the april jobs report. the unemployment rate fell to a new 18-year or nearly 18-year low. wage growth,however, remains sluggish how the major averages have been responding and what it means for the fed. >> plus, nike's ceo mark parker reportedly saying sorry. apologizing for the company's culture in an all hands meeting. we've got the detalss. berkshire hathaway buying 75

million shares of apple. speak with becky quick fd she joins us from omaha. big reaction in apple shares >> sara, good morning. good to see all of you warren buffett never really shows his hand or tells anyone what he's buying in terms of a position he likes to keep that secret because he'll often see a reaction as people try and follow what he's investing you may wonder why he told us this he mentioned this because he's going to be outed anyway tomorrow when that berkshire hathaway reports its quarterly earnings, it has to report its ten largest holdings apple is, by far, the largest of the holdings he had an additional 75 million shares of apple to the 135.3 million shares they already owned, i believe he put it all together and they own 240.3 million shares that's worth $43 billion that's $43 billion investment.

when i caught up with buffet laugh night, i asked him what he thought about those earnings because wall street had liked the earnings very much here's what he had to say. >> i like what i saw, too. there's surprises. 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. i mean, it's an amazing business here's a company that's -- whatever the earnings are, $60 billion or whatever, and you can put all their products on a dining room table. >> all their products on a dining room table. hadn't really thought about it in those terms before. it's very different than the way stock market valuations used to work we also asked buffett about general electric there were rumors circulating that berkshire hathaway and warren buffett were interested in buying all or pieces of

general electric and ge's stock was up on those reports, too he said, no, those rumors were not true but then he said, even if they were, i would be telling you the same answer. hard to say what we got out of that but he did say he likes general electric's management. >> i actually admire what he's doing. he's got a very tough job but he's doing very logically and i'm very familiar with he and we do a lot of business both on the buying and selling side. and it's a terrific american company from way, way, way back. i want the company to do well. >> back to apple apple is a relatively new investment for berkshire hathaway but this is one that buffett has really plowed into and plowed into in a big way even before this additional

stake that he bought in berkshire -- in shares of apple it was berkshire hathaway's biggest investment now a $43 billion investment and that is, by far, the largest stake. the second biggest position that berkshire owns in any stock is in wells fargo at $23 billion. number three is bank of america at $20 billion heinz kraft at 18. you always like to do these annoying comparisons just add up a few of their investments. you'd need the wells fargo and kraft/heinz to get as big of an investment as they have in apple shares >> i would assume it's the largest single stock investment that berkshire has ever had, right? >> yeah, as far as i know. that has to be the case because it's such a massive investment and this is a company that doesn't have any qualms about putting $10 billion or $20 billion into a stock this is the only one that comes anywhere close to being north of $40 billion. a single investment.

>> worth pointing out, still not a 5% holder at that level which is incredible. >> apple is buying in those shares really quickly. you wonder what that's going to mean i'm not entirely clear on what the math is. before this happened they owned bike 3.26% before the end of the year they were the fourth largest shareholder in apple this bumps berkshire up to the third largest. still two fund companies higher up vanguard and blackrock is number two. oh, take it back i'm being updated. berkshire hathaway is now number two. it even bumped out blackrock must be vanguard and then berkshire hathaway and then blackrock. so even with that, they're not the biggest. we'll see what happens as apple starts to buy in stock.

>> amazing to think carl icahn owned about $3 billion and we were talking about him all the time pd now 43 >> becky, can i just ask you one more question about another buffett investment you talked to the ceo of kraft heinz this morning they never talk to the media they're so media shy very secretive i was wondering your take and impression after speaking with him about their capability and the likelihood they'll make another deal since their failed bid for unilever >> i have never spoken with bernardo hess before this. this was the first time so i didn't know what to expect or what to take he was more open with their plans and i thought answered just about every question i could throw his way. it did sound like he's eager and potentially taking on more acquisitions he said organic growth is something that is here he doesn't think they need to

make acquisitions but he said they'd continue to do smaller brands they kind of fold in to the company but they're not at all shy about the idea of going after bigger companies, too. bigger targets and said when it comes to the food space, there's not been the same consolidation you've seen in other arenas. they want to be a driving force and factor and that additional consolidation if it takes place. he's ready to spend, big or small. >> we'll see what happens there. thank you, becky that stock is topping 2% a lot more from you throughout the day and the weekend. for more on buffett's big bet on apple, let's bring in the cio of wedgewood partners. the firm's two largest holdings are berkshire and apple. he joinso s us on the phone. you didn't have a particularly diversified portfolio beforehand you run a concentrated strategy. here you have some doubling up

with berkshire and this large position in apple. you already own a lot of apple i'm assuming that's okay with you, but what do you take away from the information that we got here that buffett has essentially doubled down almost on this apple bet? >> yeah, your first question, yeah, we're completely comfortable with that. and on the second question, i don't think he's done. i think the numbers of the investment in apple are going to go higher and maybe significantly higher it's about 25% of his current $175 billion portfolio taking it to a third, even a half of the portfolio. really, the numbers are big, but it wouldn't surprise me. when you harken back to when he owned just three stocks in '87 and then during that 1988-'89 period when he built that $1.3 billion stake in coca-cola, that was gigantic back then for the size of his portfolio back in

those days so i could easily see this being 50% of his current portfolio answering questions with becky this morning, doesn't sound like he's done, to me >> a couple of implications for apple shareholders and maybe the market, if you're right about that, one is that the company itself is aggressively buying back a lot of stock. i looked back. buffet bought 75 million apple shares in the first quarter. the company itself 137 million of its own shares in the same quarter. that's over 200 million shares by these two buyers who are never selling and it's something close to 10% of the overall volume in the stock for the entire quarter rough numbers. so buffett is not going to sell. the company is buying back a lot of stock these two folks who are essentially cornering the market in apple so what does that tell you about where that stock might go, just for mechanical reasons >> probably puts a floor under

the stock. if we have more stock market volatility, you'd assume apple and maybe step back and think about some of the things that warren buffett has said about henry singleton and there were times when henry singleton would buy in 75, 90% of a stock of teledyne and over the years, warren buffett and charlie munger have bragged about that strategy and what singleton did back then. i think buffett is in apple. they're both channeling their inner singleton here i think they'll scoop up a lot of shares over the next couple of years i hope they do >> david, it's david faber you own berkshire and apple. i know berkshire, obviously, is enormous and not necessarily going to move on its apple investment do you worry you have too much exposure to apple, given you own

both >> yeah, i mean, at some point, at some point when the percentages start to get a little skewed, we may have to, you know, trim back one or the others but that's a high class problem that we might have i actually wish that the tables would turn and tim cook would talk of warren into a buyback in size of berkshire stock. at the end of the second quarter we'll be close to that 1.3 times book value that buffett talks about that he'd like to buy back berkshire shares maybe that's the second act in this buyback situation this year >> david, thanks for your perspective on this. obviously, we'll watch to see what happens next quarter when he discloses those david rolfe. for more on all things buffett, a new documentary premiering tonight first to washington. president trump on his way to

dallas to the nra convention. >> he's working hard, learning the subject matter, and he's going to be issuing a statement, too, but he is a great guy he knows it's a witch hunt he's seen a lot of them. he says he's never seen anything so horrible. as an example, 33,000 e-mails requested by congress with a subpoena, and they get burned. they get deleted and nobody says anything give me a break. so rudy knows it's a witch hunt. he started yesterday he's a great guy what he does is -- >> [ inaudible ] when did you find out -- >> we're going to give a full list and people know and virtually everything said has been said incorrectly and it's

been said wrong or covered wrong by the press, just like nbc and abc yesterday covered the story wrong. but you'll be finding out -- >> wait a minute >> it's actually very simple it's actually very simple, but this has been a lot of misinformation, really, people wanting to say and you know what learn before you speak it's a lot easier. >> when are the americans going to be released from north korea? >> we're having substantive talks with north korea, and a lot of things have already happened with respect to the hostages and i think you'll see very good things as i said yesterday, stay tuned. you'll be seeing very, very good things >> also the trip is being scheduled. we now have a date and a location we'll be announcing it soon. >> have you changed your mind about being willing to sit with

robert mueller >> the problem with sitting is this you have a group of investigators, and they say that i am not a target. and i'm not a target but you have a group of investigators that are all democrats. in some cases, they went to the hillary clinton celebration that turned out to be a funeral so you have all these investigators, they're democrats. in all fairness, bob mueller worked for obama for eight years. you look at the statements that were made. if you take a look, as an example, at the rod rosenstein letter, to me, prior to the firing of james comey, just read it your viewers don't know about it put that letter on the air it's very much speaks very loudly and that's just one thing. i would say this if i can -- i would love to speak. nobody wants to speak more than me against my lawyers because most lawyers, they never speak on anything i would love to speak.

because we've done nothing wrong. there was no collusion with the russians there was nothing. there was no obstruction very funny if you fight back because you people say something wrong or they say something wrong or they leak, which they've been doing if you fight back, they say, oh, that's obstruction of justice. somebody says something wrong, you fight back, they say that's obstruction of justice it's nonsense. okay, so let me just -- wait wait let me just tell you so i would love to speak we did nothing wrong we ran a great campaign. we won easily. we won that easily 306 to 223 we won it easily that was a great victory that was a great day for this country. we just had new job numbers out. we broke four. 3.9% i would love to go i would love to speak, but i

have to find that we'll be treated fairly wait, wait i have to find that we're going to be treated fairly because everybody sees it now and it is a pure witch hunt. right now, it's a pure witch hunt why don't we have republicans looking also why aren't we having republican people doing what all these democrats are doing? it is a very unfair thing. if i thought it was fair, i would override my lawyers. >> [ inaudible ] >> i thought the jobs report was very good. the big thing to me was cracking four that hasn't been done in a long time you'll tell me how long. but it hasn't been done in a long time. we're full employment. we're doing great. the stock market is doing, i guess it's up 35% since the election and now i think, really, they're waiting to see what's going to happen on trade because we're going to have some incredible trade deals announced. my people are coming back right

now from china and we will be doing something one way or the other with respect to what's happening in china. and let me say this. i have great respect for president xi we have to bring fairness into trade between the u.s. and china. n we'll do it. >> are you sure that michael cohen -- >> president trump answering some shouted questions from reporters. he's in washington outside the white house on his way to dallas today to speak later at the national rifle association's annual convention. guys, he did address the nation's unemployment rate which we just got for april. 3.9% it cracked 4%. we haven't seen that in a long time december 2000. >> yeah. >> end of the '90s dotcom. >> the focus on trade probably the greatest single question

didn't say much other than his people are coming back from china and we're going to do incredible trade deals and when it comes to china, we're doing things one way or the other but we need numbers. hard to know what that means he always reiterates his great relationship with xi >> said the stock market is up 35% since the election we'll fact check that. >> the dow is up a little over 30%. at the highs, it was up around 35 >> so close but no cigar eaman jafers >> the white house has been changing its story during the course of the week about whether the president knew or did not know about payments he himself made to his own lawyer to pay off the porn star stormy daniels, $130,000 in 2017. the story that the white house settled on yesterday was that the president did make those payments to michael cohen to pass along to stormy daniels in 2017 but that he didn't really know

about it until 2018. now we see the president come out and say because rudy giuliani said that on tv, it doesn't necessarily indicate it's true. he said rudy giuliani is going to get his facts straight. giuliani will be issuing a statement and the white house will put out more information about those payments so that indicates to me the white house is about to change its story again on this and provide some additional explanation for what happened here in all of this. the president saying that rudy giuliani has only been on the job for a short time he's getting immersed in the facts and has to get his facts straight but he said he and rudy giuliani agree this investigation into the president is an unfair witch hunt saying that both the investigation into the stormy daniels matter and the investigation into the russia collusion matter, those are both witch hunts, the president is saying, and ultimately, he's saying they'll put out a lot more information i think that means we have to get ready for more news this afternoon on this giuliani front. giuliani for his part has been saying that all of the things he

said this week that made dramatic news were coordinated with the president, and the president fully approved of all of it and knew of all of it in advance. and the president saying something that might indicate maybe he's not so pleased with giuliani stay tuned >> eamon, it's not necessarily our area of expertise but you follow it. mueller also worked for bush are all of these fbi people democrats the way the president keeps saying >> no, they're not >> i should say justice department people. >> a lot of the people here, many of the main people in charge are, in fact, republicans. life-long republicans. and the fbi has traditionally maintained independence from politics, despite their personal political beliefs, and they are allowed to vote and participate in the democratic process, but despite that, they've traditionally maintained as much independence as possible >> eamon, thank you. he also said there's a date and location of the north korea summit we'll look for more information on that. looks like a little morning turn

around nothing like the 400-point deficit we made up yesterday but recovering from some early losses after jobs. it's really defensive sectors leading the way. telecom, utilities and consumer staples. "squawk on the street" will be right back much more on the jobs report and the market reaction. mr. elliot, what's your wifi password?

wifi? wifi's ordinary. basic. do i look basic? nope! which is why i have xfinity xfi. it's super fast and you can control every device in the house. [ child offscreen ] hey! let's basement. and thanks to these xfi pods, the signal reaches down here, too. so sophie, i have an xfi password, and it's "daditude". simple. easy. awesome. xfinity. the future of awesome. we're getting more impromptu comments from president trump.

let's listen >> when did you change your story on stormy daniels? >> we're not changing any stories. all i'm telling you is this country is right now running so smooth and to be bringing up that kind of crap and to be bringing up witch hunts all the time that's all you want to talk about. you're going to see -- >> you said on air force one you didn't -- >> excuse me you take a look at what i said you'll see what i said >> you said -- >> you go take a look at what we said but this is a witch hunt like -- >> i guess we lost the feed. looked like president trump was taking more questions. oh, there we go. >> what i do want you to do is look at our economy. today we broke 4%. 3.9% we hit today for the first time in many, many years we're really proud of it, and we'll talk to you folks later. but i will tell you this, i will tell you this. when rudy made the statements. rudy is great, but rudy had just started, and he wasn't totally

familiar with everything and rudy, we love rudy he's a special guy but he really understands that this is a witch hunt he understands that probably better than anybody. excuse me. but rudy understands this better than anybody but when he made certain statements, he just started yesterday. so that's it so bottom line is -- bottom line is, i want to talk to the people in charge. if they can prove that it's a fair situation the problem we have is that you have 13 people that are all democrats and they're real democrats. they're angry democrats, and that's not a fair situation. thank you very much. we have a chance of bringing -- we have a chance -- we're doing very well with the hostages. we're in constant contact with the leadership we are in constant contact with

north korea. we've actually worked out a time and a place which will be announced shortly. >> where >> very soon >> i figured you'd ask that question but -- wait a minute >> [ inaudible ] >> not really. not at this point. certainly not. >> [ inaudible ] >> no, no. and we haven't been asked it now i have to tell you, at some point into the future, i would like to save the money we have 32,000 troops there. but i think a lot of great things will happen, but troops are not on the table absolutely >> when did you first learn about -- >> all right he's boarding. i think we're okay now president trump taking some more reporter questions at joint base andrews getting on air force one to go to dallas. eamon javers, sounded like he reported what he said about rudy

giuliani, just starting a day ago, getting his facts straight and the north korea summit >> it's a clear sign the president is anxious to talk about this, anxious to clear the air or get his side of it out because typically presidents don't talk at the white house and at joint base andrews. that's an unusual thing we weren't expecting. but, look, the president saying again that giuliani misstated something this week. got his facts wrong in some way. but refusing really to say in what way giuliani got his facts wrong here and saying there will be another statement coming out soon so it seems like the white house is about to change its story here on this stormy daniels payments the president saying it's not rudy giuliani's fault. he only started recently therefore, it's totally understandable why he apparently messed up these particular facts, whatever they are but the president had the opportunity there to lay out what did happen and he didn't take it. so that's something you have to bear in mind as well >> eamon javers, thank you the dow is up now 121

points so we've recovered some early losses and are now in rally mode after the jobs report this morning, which showed 164,000 jobs were added in the month of april. 3.9% unemployment. that's the lowest level we have seen since december 2000 and as i mentioned, now we're getting a broad-based rally here maybe it was president trump saying a few moments ago that he respected president xi and that's why we're seeing so nice on china that's also in the mix today let's bring in our guests on all things markets jpmorgan's chief global strategist and oppenheimer's strategist john staltus. john, i was surprised the initial gut reaction to the jobs report wasn't stronger here you have the lowest unemployment rate in almost two decades. and not much signs of an overheating economy in the slower wage growth so the fed doesn't have to be more aggressive about it. >> i think what it is is the mark set particularly focused on

the trade issues it's looking for substance rather than rhetoric in addition to that, released to the numbers this morning, when we looked at it at 164, slightly short of the 190 expectations, and then wages rising, what, 2.6 versus 2.7 but we look at it, and we think the market is reconsidered based on that last set of numbers we saw. we've got a broad rally across the industrials, s&p and the nasdaq composite that doesn't look too bad. but we think we're really in a phase right now where the market is waiting it got spoiled in the first four weeks of the year when everybody loved the market and we're at a point where it's really waiting for a catalyst that will give it reason to move substantially higher >> you're sticking with a 3,000 targ oet on the s&p? >> what's the catalyst going to be >> the catalyst would likely be if we get any kind of resolution

related to nafta if we get -- something positive moving towards a substantial agreement with china we could see a real jump in these markets. this is an overhang right now. real concern about -- people are slowing the process of making decisions for business because of the impossible implications from a trade war >> david, how does today's jobs number fit into this whole story line of how fast the economy is moving, especially when seeing a rollover and some of the indicators in europe we'll be back in this low and slow environment >> to paraphrase mayangelou. when this tells you what sort of economy we have. it's an economy we're not getting booming groects. 164,000 jobs is not exactly booming. it's fine, but also the unemployment rate is falling so it's telling you it can't grow faster we'll not be able to sustain 3% growth

but the other thing is no matter how tight this labor market is, we'll not get a surge in wages it's not going to generate inflation. overall, i am pretty happy with where the economy is it's okay for the stock market, but i do think it keeps the fed raising rates. as for europe slowing down, i don't think the global economy is slowing down. it's a slower growing global economy than in the miss lmiddl the last decade. no sign of cyclical weakness here or in europe. >> we've got to leave it there we had a number of comments from the president. thanks for weighing in on jobs in the market. we want to hit our etf spotlight. make, you are looking at alibaba, off earnings today. >> down about 1% right now on its earnings looking at a variety of etfs that contain alibaba in heavy concentration. coming at it from a lot of different angles k-web is the crane shares etf.

it's a big piece there more than 8% you see it around the flat line unit day two what's interesting is you look at the overall china index etf, mchi it's about 13. alibaba is about 13% of the weighting in this one. also about flat year to date here's the most interesting part of it. this is an emerging markets adr index. not just china, not just tech, not just internet. it's 17% weighted in alibaba 41% in tech. if you look at a chart of this emerging market's edr etf, it's almost in lockstep with it i think it's an interesting reveal on how emerging markets have become tech as opposed to heavy industries >> that's a big percentage mike, thanks when we come back, goldman

sachs chief economist is going to join us i was a c130 mechanic in the corps, so i'm not happy unless my hands are dirty.

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stocks really picking up steam rallying through the morning. dow up nearly 150 points apple is a big part of that story. also the reaction to the jobs report unemployment rate falling to an 18-year low. goldman sachs chief economist jan joins us 2.6% growth. same where it's been the last three months what happened to the corporate tax cuts, companies are going to start paying workers more with those savings. >> we never thought that was really going to be a major factor that said, i think the fundamentals support stronger wage growth. we are seeing some signs of stronger wage growth if you look

at all of the numbers together not just today's average hourly earnings number but employment cost index which is the strongest since the crisis i put some weight on all of these things >> yes, but 3.9% unemployment. doesn't that indicate that companies are getting desperate to fill all their positions with workers and we might run out of workers for some of these positions and, therefore, they should be paying them more >> they should be paying them more and i think they are paying them more to some degree it's a gradual process i think we're still, if you look at all of the indicators together, at or maybe slightly beyond full employment, i don't think we're massively beyond full employment. i think most people, ourselves included, have reduced their estimates of how low the unemployment rate can fall before you really get a serious inflationary overshoot i don't think we're at that point. i do think from a policy perspective if you run monetary policy, you'll be wanting to take out some insurance against

that possibility but i don't think we're at that point right now. and the wage numbers certainly wouldn't say that -- >> what gets us there? why don't we have more wage inflation? >> the main reason wage inflation is lower than it was prior to the crisis is that productivity growth has been a lot lower. so it used to be 2% productivity growth and 2% inflation target that gives you 4% for wages. that calculation gives you 2 plus 1 for productivity growth and that's the main reason beyond that, the numbers have been somewhat lower than i think most people would have expected and that's gotten people to take down their estimates of how low the unemployment rate can fall it's more than just one story. >> you know, in recent months when we got 200,000 monthly job gains, economists would say that's unsustainable not at the point in the cycle we

can keep it there. is 164 the run rate and where does the unemployment rate ultimately settle? >> i think the run rate in the long term when the unemployment rate is flat is well below 164 maybe 100,000. but, you know, 164 is probably the sort of close to the current trend. the current trend is probably 175 to 200 or so that's the kind of pace that pushes the unemploy am rate down going to 3.5% by the end of this year 3.25% by the end of 2019 and partly because of that, monetary policy, i think it's going to respond by pushing up the funds rate >> any fed policy implications of today's report? >> i don't think anything major. it cements probably the case for a june hike that was pretty rock solid and for the time being, the remainder of 2018, i think

they hike a quarter. 2019, also hike a quarter. four hikes for 2019 is our base line but there's a lot more uncertainty around that in both directions, i think. for this year, i think quite a high probability they'll just keep going on the path they've already started on >> so are there odds for more than three rate hikes this year higher than for less >> i think for this year, it's actually, in my view, very likely that they'll deliver another three. and for next year, that's where you have the uncertainty because it depends on when the unemployment rate stops falling. what exactly happens to wages and price inflation. that's a lot more uncertain a year out than it looks over the next, say, six or nine months. >> dow up 200. jan, thank you very much jan hantzius, chief economist at goldman sachs. when we come back, we'll

have jim stewart with us plus, former chairman of the council of economic advisers ed wazeer will joinous the jobs report

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chip stocks snapped an historic winning streak. could be a flashing yellow flag for the rest of the market nd ofiut more on tradingnation.cnbc.com "squawk on the street" will be right back after this.

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at&t and time warner asking a federal judge to allow their merger to go through without any conditions saying in a brief late yesterday the government did not make a credible antitrust case the justice department arguing the deal could harm competition and raise prices for consumers our next guest says when it comes to this deal, or sprint and t mobile's potential merge they've announced, the elephant in the antitrust room is amazon. jim stewart joins us that pesky amazon.

it comes up in everything. >> they are everywhere the reason amazon is so important in these cases is, antitrust cases are all about market definition. and will a merger reduce competition. if the market is small, the answers tends to be yes. so if you put -- so does amazon compete with time warner and at&t in distribution and content? i think they made a powerful case it does not only that, the big test is, are they going to be able to raise prices last week amazon comes out and hypes the prime service by 120%. you don't need to theorize they are they clearly have a lot of market power this is a very competitive market the time warner deal should go through. looking at the sprint/t-mobile deal, it's the same question >> let's point out it's a different construct. one is a vertical merger it's not been challenged since '77 by the doj the, is your traditional horizontal deal where you're

going from four competitors to three. >> that's the big question is it four competitors 2014, they said four competitors going to three no, no go. what has changed in three years? why do they think they'll get through now? the only way for them to make that argument is to say, oh, it's more than four competitors. now they're saying throw comcast in there >> and charter >> john legere said there are eight or nine competitors which i'm trying to -- >> i guess you can say facebook, amazon sweep these in and also saying 5g when it comes, it's going to really blur these lines. so voice, texting, all of this will be available to anybody over the internet. the problem is we'll come back when we've got 5g. antitrust regulators, judges are not good at looking at a crystal ball and saying this is what it will be like in three or four years so go ahead and do it. come back in three or four years. certainly with voice, data,

texting, it's still a four-company market. >> you're less than 50% on the chances sprint and t-mobile gets -- >> with this administration, that's another thing who knows? who knows. nobody thought they'd challenge at&t and time thought they would challenge at&t and time warner and they did everybody thinks they will challenge sprint and t-mobile. maybe they won't i'm not putting any mon oin this in terms of anti-trust, i feel yes, at&t time warner should go through and no, sprint shouldn't go through. >> will we be able to come back in three years and say this is a viable competitor with four companies and maybe now we can go to three? >> there's an exception to these rules if one of the companies is failing. and if they want to come up and say, you know, sprint is failing. so, it's going to disappear if we don't do it they could make that argument, but they have not made that argument now

you go on their website, it's how great they are. >> deep pocketed backers, overseas companies. >> if they want to keep it going a few years, they certainly can. i'm just saying they haven't made that argument but in theory, they could. >> jim, is there any potential for amazon itself to face any anti-trust scrutiny, given the president's disdain for washington post coverage >> yes amazon, largely to its credit, has organically grown in these businesses they didn't try to go out and buy time warner. they built a media business pretty much from scratch they spent money on t they've got the money to spend it's impressive. you can't go with them under the merger rulings but a broad quote, unquote, monopoly ruling. that will be really tough. >> i did a panel, it was taped, it was public.

doj's anti-trust enforcement seemed to be having a hard time with this idea at this point. >> i agree. >> to bring any enforcement action against the likes of an amazon, alphabet or facebook on that level. >> with media distribution, it will be hard to bring a mon monopolization case. >> it seems they're trailing not necessarily leading in terms of what's taking place in these industries. >> that's a very good point about it anti-trust law has looked at the world as it is right now it will not look what it will be a year from now, five years from now. by definition it will always be behind the curve look at the facts now, bring the case litigate it. fast changing technology and media world, you know, don't even talk about years, but months can make a big difference in how these markets look.

>> thanks. >> sure. >> have a great weekend. jim stewart. >> let's get you out to the cme group in chicago rick santelli is there with the santelli exchange. good morning, rick. >> good morning. ed, thanks for taking the time to join us. >> always a pleasure thank you. >> 164,000 but positive revisions to previous months. >> right. >> break the veil of 4% on the unemployment rate. employment population ratio and labor force participation rate, each lost a tenth. >> right. >> 95 in the half million people that can work but are not working. maybe the most important thing, wages, month over month, year over year, were retro graded and now stand at levels that don't seem nearly as threatening as we once feared. you take it from there. >> well, you did a great job of summarizing. i would add a couple of things first of all, we are still

seeing job growth that is above what we would guess we would see at the peak or at a plateau. so, to me, we're still in recovery mode, despite the fact that we have 3.9% unemployment, which sounds kind of crazy i think that's the reality the other way i would make that point, rick -- it comes back to something you said a little earlier on the show. you were a little bit disappointed in the wage growth numbers. the way i think about it is this when you are at a peak, what you should see is productivity accounting for more growth than ours do. if you go back, think about the period before 2007 what was typical, you got 2% of growth from productivity and 1% from hours, from additional work right now we're seeing the reverse. we're seeing about two-thirds of it still coming from hours and only one-third of it coming from productivity so, that suggests that we're not yet at the peak. we still have some room to grow.

in some sense that's good because it means there are people we can bring in to the labor force. there's room for improvement i would guess this isn't going to continue forever. another, you know, maybe end of the year, year total would be about it then we should be there. hopefully, it will be a plateau, not a peak where we end up coming down the other side. >> you know, ed, let's take a more macro approach from the back half discussion i've heard many guests say -- and i understand it's like oh, my god, all these policies everybody says is so good, less regulation, tax reform, foreign policy that has potential upside, ugly trade issues that look like they're being dealt with in a way we could end up better off. the equity markets price this stuff very quickly, it seems. >> they should. >> kind of the policy buzz but everybody assumes that the economy at large is going to all of a sudden wake up and it's all going to be through the economy, metastasized, assimilated and

work its magic there's a huge lag between when the markets say wow, this could be a good future and when that future starts occurring within the economy. your thoughts? >> yeah. well, let's go back specifically to the issue we were talking about before let's think about wage growth. remember when the tax law was enacted, there were actually quite a few companies that did pass on those wage -- savings to their worker and did so immediately. to be honest, i was a bit surprised by that. >> me, too. >> when you engage in long-run policy and the tax cuts are long-run policy, not short-run policy -- you expect this to play out over the longer run the way the tax cuts were supposed to work is by encouraging capital formation, encouraging more investment, productivity would then show up through the additional investment and that then would be translated into wages. >> and that takes some time. yes. >> and it will take some time because capital formation is not immediate.

>> i'm with you. >> so, i agree i don't think that we should expect to see things that would occur right now. >> without the surge and without output half a million back to work, it appears bleak it's not about only policy but making sure it does what it is supposed to. ed lazear, thank you for joining us. >> thank you. apple is up 3.5%, helping propole the dow up 227 warren buffett making a big bet on the company lot more on that. 11:00 a.m. eastern time, don't miss this interview, exclusive with microsoft ceo satya nadella.

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