it's national doughnut day i think the record is 8 for andrew >> we're going for 10. >> no. >> it's friday, june 1st, national doughnut day, my father's birthday, 2018. "squawk box" begins now. ♪ live from new york where business never sleeps, this is "squawk box. good morning welcome to "squawk box" on cnbc. we are live from the nasdaq market site in times square. it's friday. we're ready to go. i'm becky quick along with joe kernen and andrew ross sorkin. it's national doughnut day, andrew is gearing up >> you think it's like a contest. i just enjoy doughnuts you guys can have the contest. you should all eat and drink in moderation >> nathan's. >> it's like the hot og. >> one or two times i just kept

eating the doughnuts it's more because i enjoyed them i'm not having a contest >> it's a contest. >> there's no time constraints you have three hours it's not like the hot dog people >> i don't even see doughnuts around >> we'll get them for you. u.s. equity futures, yesterday the markets were back down on concerns of tougher trade talks after the tariffs that were dropped on many of our trade partners >> tougher trade talks and tariffs -- >> i almost threw in trump >> awesome >> yesterday the dow was down by 250 points this morning green arrows across the board. dow futures up by 136 points s&p up by about 14 the nasdaq up by 31. treasury yields after the trump tariff trade talks, treasury yields sitting at 2.884% let's look at what happened over

night in asia. you'll see the nikkei was down just slightly. hang seng was up slightly. shanghai was down. in europe, some early trading taking place, stocks are up across the board italy is up by 2.5% after all the concern about the political talk there some resolution coming for the short-term on some of those political issues in spain, stocks up by 1.8%. the bigger markets, looking at the dax, up by 1%. cac in france, up by 1.3%. >> two major political stories out of europe. both are being closely watched within the last hour in spain, the opposition socialist leader, pedro sanchez won a vote to replace mariano rajoy. >> mariano rajoy

you cohave reuld have read that. >> knit in italy the new govern has been sworn in. >> in spain, you can replace the country's leader like a lot of people would like to do here he was replaced with a socialist. >> right >> so, there is precedent for just taking trump out and sticking bernie right in which i think is what a lot of people would like. >> right what do you call protectionists? >> that's what --i think the left is -- if he gets any support -- there's no support. the "journal" has a scathing piece on this. if he gets any it's from people like rust belt places. but i just thought it was interesting that hope springs eternal. and in spain they kicked the guy

right out. they stuck in a socialist. it can be done it can be done >> the voters spoke. >> willem marx is here with both of those stories good morning >> good morning. it's all about parliamentary democracy in spain making that possible they had a vote of no confidence in mariano rajoy the prime minister who has been there for more than six years. it's party has been engulfed in a corruption scandal, and pedro sanchez managed to win a majority of votes in the lower house in madrid. so he hamidly taken over as prime minister of spain. the other big story in italy, we will have a new government, new cabinet sworn in later on today. that's after giuseppe conte, a law professor from florence, he's taken over as prime

minister they managed to get a guy that they're happy enough to have as finance minister he's also a university professor from rome, giovanni tria will take over as finance minister. big questions over spending and taxation plans they have that deficit of 130% of gdp, that could run up. we've seen bond yields fall dramatically on the italian two-year, so seemingly the market is a bit more relaxed about the course of events in italy. >> willem clearly the -- both party that have coalesced in italy are euro skeptics, but both have gone to great lengths within the past 24 hours to say, no, no, we're not ready to get out -- to go back to the lira. are they just saying that now to

assuage some fears do they have that in the back of their mind or are they not anti-euro? >> or are they not anti-euro after they saw what happened to the markets this week? >> that's the trillion euro question, i guess. essentially very good visual metaphor today, over the last 24 hours, the headquarters of lega had a big sign on this wall that said no more euro. they white washed it yesterday afternoon. so we've seen that sign come down throughout the campaign, you're right. they step back from this criticism of the eurozone and the euro itself. if you look at the history of both parties, particularly lega and mateo salvini, they've been critical of the single currency. they have a man who is critical of it as well, but giovanni tria

has written about it a lot we'll see if they try to reform europe from the italian perspective. >> all right last night on "jeopardy" the currency was the final question. they showed the picture -- >> oh. >> it was embarrassing that i'm admitting that i watch "jeopardy. we watch "wheel of fortune" too. really embarrassing. last night it said on the 20 euro bill, there's a greek goddess that is particularly fitting, a picture of her. the mother of someone. no one got it. >> i have not seen the picture >> you would not know her any way. it's europa. willem, what do you think of that >> a place right over here, they sell salad, it's called europa

i go there all the time. >> this is not a salad day doughnut day how was that, matt europa >> we were better a minute ago we diverged. >> we digressed. >> replacing the president with a socialist? that wasn't so good. among the -- >> no, no. we were good, but then we swayed >> okay. here we go here we go among the top corporate stories, deutsche bank hit with a big credit downgrade from s&p. the rating agency says the lender is set for sustained under-performance. is this the big story today? andrew, this fed thing is big. isn't it a rare rebuke from the fed which came first the s&p move or the fed move it's a fed downgrade that's not good. calling it troubled conditions in a memo to staffers, the bank

ceo acknowledged the bad news but assured them the bank has solid capital buffers despite the downgrade. shares of db are trading higher in europe this morning this is an unusual move for the federal reserve. >> deutsche bank has been so screwed up it's such a sad story. >> for the biggest bank for the biggest economy in europe. >> what's the market cap >> the behavior of the bank has been so troubled >> really? >> yes and we've known. this is the riskiest bank in the word over the last five years. maybe going further back when everybody else cleaned up their act, these guys never did. >> what's the problem exactly? bad investments? bad real estate? bad lending? >> too much risk too much risk, too much leverage relative to everybody else >> didn't pay off with their share price. >> did not.

contract negotiations are still under way between las vegas' hospitality union and casino operators midnight deadline passed with no clear deal in place. tens of thousands of workers will walk off the job if they don't get better pay and job protections. shares of lululemon jumping to all-time highs. yeah yeah i know you love to pull it, they're stretchy >> i like yoga pants >> they are. they're stretchy doesn't matter what i eat. the company's first quarter results beat forecasts performance was driven by more than 60% increase. bought them on the web online sales, that's how i got these. the maker of yoga and athleisure wear -- >> and office wear >> and office wear it has a zipper where my wallet goes that's the best thing. it's raising second quarter

guidance right here >> beats a fannie pack >> how many pairs of pants do you have like that now >> three two blue, one gray -- you think i have one pair that i wear? >> i didn't realize how much you were wearing them. >> i wear them >> not personally. somebody does. >> they're nice. some other stocks to watch, shares of samsonite surging 13% in hong kong as the ceo resigned the move comes less than a week after a short-seller blew orca capital attacked the luggage company's accounting practices. stock is up by 10% ulta beauty beat forecasts, but the second quarter outlook is below what analysts were expecting. gamestop's first quarter earnings and revenue were in line with estimates, but same-store sales fell more than expected on a drop of sales in

video game hardware and software gamestop naming shane kim as interim ceo. the previous ceo passed away back in march, his successor resigned just last month the stock is down 3.8 %. let's talk about the story of the morning u.s. levees raise fear of trade war. u.s. tariffs now against canada, mexico and the european union are going into effect today. they include a 25% tariff on steel, 10% on aluminum mexico, canada threatening to retaliate. where do you come down >> did you read this >> i'm a little concerned. >> this was like me. >> exactly what i was going to say. the first sentence was like are you sure you didn't -- this isn't a guest columnist? so much for donald trump as genius dealmaker we're supposed to believe his

tariff threats are a clever negotiation strategy but on thursday he revealed he's an old-fashioned protectionist. >> big concerns it brings up about nafta. >> i see some of cramer's comments, it's not great for the markets but we've been tread upon for a long time >> which i can agree with. >> not sure how you do it. >> we had a guest yesterday -- >> wilbur is so smart. known him for so long. sometimes when i listen to him, i do get sort of lulled into a -- i start getting sleepy, but he does make sense a lot of times. >> the problem is where you stand on things depends on where you sit. for some sectors of the economy, where wilbur has had success with steel companies and he knows that inside out, you wonder what that means for a boeing or caterpillar or another sector of the economy. yesterday those two stocks got hit hard >> did you hear about the drag out internal fight with navarro now and --

>> mnuchin >> that was pretty incredible. >> navarro said it was an unfortunate sound bite what the treasury secretary steve mnuchin said two weeks ago when he said the trade war was on hold. >> when mnuchin came on two weeks ago, he said they were all singing kumbaya together and everybody was on board >> wilbur ross was different when he was on a few days later, he said the president likes to have competing opinions and competing views, we're all there to give our opinions on such things we had a guest yesterday, the guy from the national association of manufacturers, the ceo, jay timmons, he said i do like these policies i don't know come back and ask me after we see what results are >> this is a fair is foul, foul is fair sort of thing. usually people on the right are huge free traders, like bernie, socialists are protectionists.

i don't know this happens a lot we're here, then there's an issue that comes out where we should be over here. then all of us are here. it happened with yanny and what's its face. i said i heard one thing, you said you heard the other, then you said you did here -- >> yes >> you're a big free trader now? >> in this instance -- >> is it an enemy of my enemy? anything trump does you'll hate. >> no. no but i think this will create some problems long-term. >> okay. this is the -- this is the north korean kim we're talking about here, have i got that right? in other news out of washington, president trump -- what about kardashian she's not trending there's no letter from kardashian this is from kim jong-un >> she would go to snap. >> would not be snail mail

a letter from kim jong-un will be hand delivered by north korea's top diplomat eamon javers joins us live from d.c. only hours, not days now and it's national doughnut day what's in the letter when will we know? >> we might not know at all. it's up to the white house to release the contents of the letter we got an update yesterday from secretary of state mike pompeo he's been in new york negotiating with the north koreans directly we have talks going on in singapore, at the dmz, the russians sent somebody to north korea. there's a flurry of diplomacy going on around the world around this talk of a negotiation for a summit on june 12 th between the president and the leader of north korea. will we get that summit or not mike pompeo gave us an update

yesterday on where things stand. >> the vice chairman is planning to travel to washington to deliver a personal letter from chairman kim jong-un the proposed summit offers a historic opening for president trump and chairman kim to boldly lead the united states and the dprk into a new era of peace, prosperity and security. >> the secretary of state was also careful to lower expectations or temper the idea of what might be able to be accomplished here. >> this is a difficult, difficult challenge. make no mistake about it there remains a great deal of work to do and we made progress here as well as at the same time made progress in the other venues that conversations were taking place. we had all the time we needed today to make the progress that was after chooefribchievable due in new york city >> the president tweeted out he was encouraged by the progress made so far in this flurry of

diplomacy seen around the world. not clear if that june 12th summit is on or off. last week the president canceled it, but negotiating stepped up after that we could see another round of showmanship here in terms of different sides backing away or agreeing to the summit before all is said and done the president seems action to push for that june 12th date and get something accomplished here. something historic that the united states wants to see on the korean pa finance eninsupen. >> a lot of things swiring n swirling it's going to be a longer negotiation potentially. may not be the 12th, but it may be at some point mr. kim was with lavrov. now putin is injecting himself into things. god knows what he says in kim's ear and how that influences things >> the last time the president was upset when kim jong-un went

to beijing and met with xi jinping in beijing president trump felt that xi jinping had put kim jong-un up to being more negative about the talks, and that's what led to the cancellation of the talks initially. >> all of your friends down there, i won't mention networks, they'll all say putin probably whispered to kim, trump is my guy. i got everything on him. i got him elected. i can tell him what to do, let me handle it what do you think? i know jim acosta thinks that. >> i don't know what to think of your meta media criticism there. >> putin wants trump he got him elected >> the question is what does

putin want on the korean peninsula. >> my thought was he's there just to say if you don't get a good deal from them, let me know, maybe you'll get a better deal from me >> lease the >> he's there to cause trouble we don't have a great relationship with putin now. he's there to try to throw a wrench into things >> insert russian influence into the situation. something else, the pardons, those are weird, aren't they >> martha stewart coming up. blagojevich. >> rod blagojevich two veterans of "the apprentice" empire apparently -- i had to google this to refresh myself on it, apparently trump and martha stewart had a falling out after she had the successful program of celebrity apprentice, it didn't do well in the ratings, there was blame game between the

two over whose fault that was, apparently they patched things up she could get a pardon here. >> could be sending a signal supposedly to other people that might want them. but look who prosecuted those guys and who was involved. comey with martha stewart, and preet with desousa >> was it? >> yeah. and they said preet, you got fired, i got a pardon. it's weird >> the pardons are weird and unexpected definitely not -- there's normal pardon process that goes through. who did blago? was that -- >> fitzgerald? >> another guy involved that was a special counsel. patrick -- >> fitzgerald. >> taking care of all family business this is like got father. don't want to say that

the presidency is a powerful institution. >> all family business, sorkin comey said it was like a mafia >> it was patrick fitzgerald >> did you ever think this, when he got elected you will see more of this. >> you know that from -- >> i just imagine -- >> you didn't say you imagine. you said you will see. thanks, eamon. they're wrapping me. today is jobs friday the government is set to release may employment numbers at 8:30 today. make up your mind. the numbers come at an uncertain time as a possible trade war looms. for the economist perspective on these issues, let's bring in michelle gerard managing director and u.s. chief economist at natwest markets and jim o'sullivan from high frequency economics. i saw some really specific

numbers. andrew knows what trump will do. you know what numbers will be today. 180. >> that's my estimate. >> that will round out to about 160 run rate which is pretty good >> exactly anything over 100, 1150 certainly keeps downward pressure on the unemployment rate so we're even at the underlying trend the last couple of months, which the markets have been disappointed about, us economists have felt for this stage of the cycle we're seeing healthy job growth the thing we hear more about when we look at these payroll numbers, any weakness if anything is perhaps a reflection on a lack of labor supply. >> there's two competing theories one is a lack of labor supply and you can't find anybody for these additional jobs. the other is because the trade talk has been heightened and ramped up. >> i feel it's a little early on the trade side >> is that something you'll see in coming months

>> depends on how it plays out >> you don't think it has an impact currently >> not in terms of hiring numbers. there's been a pull back on sentiment numbers. when you look at capex spending plans, they're off their highs in terms of what they expect to do in the coming six months. still at elevated levels something like that you might say, okay, there may be a bit more caution, more of a wait and see attitude i think in terms of hard data, the weather in the last couple of months in terms of some of the disappointing versus the expected numbers may have played a role things like that >> you don't think the labor market is -- >> i do -- >> you do think? >> i do think it's tight, but i'm surprised as everybody else that we're not seeing more -- >> 0.2% you're looking for >> exactly again, we were speaking before that the truth is that --

>> you are raising your hand >> i'm blinded >> it's so hot they pretend they're fixing it, they sneak it up again you have to watch them like hawks. >> i can't see >> you look fine i guess. do you agree basically >> broadly, yes. i take the over on payrolls today. i have 220 on payrolls >> what? >> first four months of the year, 200 now a month, which is better than 182 last year. we have not hit the wall in terms of running out of people yet. i have unemployment of 3.9 after the drop last month. jobless claims are near the lowest since 1969. despite the angst about trade, this is a strong economy >> are you still waiting for wage gains >> i think taoday will be a tam number you look at the quarterly employment index, it was 2.9%

year over year in q1, all of last year was 2.6. >> so there's not a bunch of 25-year-olds to 50-year-olds at home waiting for money >> i certainly think if you saw wages continuing to move higher, you are going to continue to -- >> you could face a skills gap >> that's what we hear a lot in certain sectors where they're finding it's difficult, you know, it's a skilled sort of area i think it's a problem when you look at job openings, companies are reporting hard to fill job openings, all of those do suggest companies are struggling to find qualified workers. yet not willing to pay more to try to get them. i don't know if that's a hangover from the crisis or maybe low inflation. i also believe that

productivity, weakness in productivity is a big part of it companies don't want to pay workers that are not as productive to justify that >> you see things like the housing prices starting to rise, the higher higher housing prices go, the more they will pay for construction >> i feel like home bride ebuils have been saying they've had trouble finding qualified workers. construction is an area with faster wage growth, but there's nothing broad based going on at this point >> so the participation rate is not signaling that we had some policy mistakes in terms of making it too attractive for some people to stay home with what they can keep at home it's really a skills gap they would come back if they had the skills you heard disability and all that, you can stay home and do

better >> participation rate fell more than the demographics seem to suggest until three, four years ago. the last three, four years the participate rate is flat the secular trend is down. to the extent there's a flat reading, i think there's been relative improvement that 25 to 54-year-old group has been coming back a little bit. i think there's been some cyclical recovery there. but it's never going back to where it was unless you have a bunch of immigrants that are young, the trend is down over time. >> okay. okay thank you. thank you, michelle. >> so this is what we'll tease -- >> doughnuts >> it's jobs friday. a big deal but i think the bigger deal is the doughnuts. >> doughnut day. >> of course you do. >> just glazed today >> hold on coming up, it's not just about sugar. this is the part that's

important. today is national doughnut day we're talking about the big business of a special breakfast treat. we'll start the beginning of the celebration after the break. ron! soh really? going on at schwab. thank you clients? well jd power did just rank them highest in investor satisfaction with full service brokerage firms...again. and online equity trades are only $4.95... i mean you can't have low cost and be full service. it's impossible. it's like having your cake and eating it too. ask your broker if they offer award-winning full service and low costs. how am i going to explain this? if you don't like their answer, ask again at schwab. schwab, a modern approach to wealth management. it can grow out of control, disrupting business and taking on a life of its own.

its multi-cloud complexity creating friction... and slowing innovation. with software-defined solutions, like hpe onesphere, you can tame the it monster. hewlett packard enterprise. clouds, apps, and insights faster.

♪ i've been having sweet dreams about this for basically all year today is the day jobs friday is part of it, but not really it's doughnut day. national doughnut day. do you know how this tradition started? here's how it began. a way to thank the salvation army volunteers who served doughnuts to soldiers in world war i. the female volunteers were called the doughnut lassies. in modern times many doughnut chains, restaurants give you the free treats. we will talk to the ceo of dunkin' brands is he bringing doughnuts the cnbc newsroom has taken a poll -- a lot of people take polls on jobs numbers. they have taken a poll on how many i will consume. the current consensus estimate

is 7 >> i will take the over on that. >> i don't know. i usually like to eat. i have a problem with doughnuts in front of me the only problem is we will not start eating doughnuts until nigel here, about 7:50 in the program. therefore there's really only an opportunity -- >> that will put a damper on things >> there's an opportunity to eat an hour's worth of doughnuts >> i may buy you some now. >> should be no reason in an hour you can't beat that >> i like glazed if you have all the stuff -- if you're eating -- >> we keep alternating between doughnuts and donuts >> dunkin' donuts is spelled donuts >> it's not like your average stupid taco day. i love tacos, but i think they made that up this has a real and sort of a --

>> a proud history >> a poignant -- >> does this have more of a poignant history than a valentine's day? >> some of those are hallmark generated. >> right >> like father's day, i don't think that's real. >> it is >> no. mother's day mother's day was first. coming up -- >> jobs friday is very real. don't fear the machine why the rise of robots could lead to more jobs for humans maybe that will happen that's my hope 'lbe back. tart 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? 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 it wi called usaarst and the first thing they asked was 'are you ok?' they always thank you for your service, which is nice because as a spouse you serve too. we're the hayles and we're usaa members for life. at crowne plaza, we know business travel isn't just business. there's this. a bit of this. why not?

your hotel should make it easy to do all the things you do. which is what we do. crowne plaza. we're all business, mostly. crowne plaza. ♪ most people come to la with big dreams. ♪ we came with big appetites. with expedia, you could book a flight, hotel, car, and activity all in one place. ♪

theextreme risk of burstd a pipes and water damage...y... 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.

breaking news out of las vegas. a culinary union is reported a tentative agreement has been reached with caesars caesars owned 9 of the 34 properties that are facing a possible strike there. the union says the new five-year deal covers about 12,000 workers at nine ka seen dcasino resorts las vegas strip. tens of thousands of casino workers have been threatening to work off the job if they don't get better pay and job prote protections in their contract. it looks like one of those casino operators has settled the countdown is on to the big jobs report. the government due out with that number at 8:30 a.m. eastern time ahead of the release, a new survey predicting u.s. employers will hire more, not less workers as they shift towards automation counter

counterintuitive for more on this, let's bring in becky frankowicz we have this conversation about how automation will up-end the work force you say not really >> not really. we just completed a survey of 2,000 u.s. employers asking them what's the impact of automation they see 91% said they expect to maintain or increase employment in the next two, three years. >> the question though -- let me posit it this way. is it possible we're still too early in the automation debate around whether people will still have jobs? meaning there's still things these robots -- technology is just not good enough yet >> yeah. the technology is new. you can see already some of the impacts they can have. on accounting. things that are replicatiblrepl those will be impacted early >> walk us through what industries you think will be

most impacted by automation, and is there a counterintuitive sense of that? >> yeah. i would say anything that's highly repeatable we think will be most impacted we also see new jobs coming in high-tech meets high touch someone, a human being who walks alongside the automation to make it more impactful. >> how much of this is about robotics and how much of this is about ai >> we're seeing both in manufacturing 4.0, we're seeing a lot of robotics, also ai coming in underlying data we'll see both >> elon musk made a fascinating comment about how they were struggling with their production and they have done a lot of robotics work. he said i underestimated the value of humans, but again, are people talking at all about a point where the robots or ai is better than humans >> there will be tasks that robots or ai and/or ai can do

more effectively than humans we're seeing robotics and ai need human beings to execute it. so hard skills meet soft skills, making us more efficient >> thank you for coming in >> thank you >> grab a doughnut >> can't wait to see the jobs numbers. >> great to see you. >> very concerned yesterday, we yumible a jumble all the words i looked at tesla, and i saw edsal. coincidence? i hope it is. coming up, the biggest cancer research conference kicks off this weekend we'll tell you which stocks could move on the event. we'll be right back. since i added futures, i have access to the oil markets and gold markets. okay.

i'm plugged into equities - trade confirmed - and i have global access 24/7. meaning i can do what i need to do, then i can focus on what i want to do. visit learnfuturestoday.com to see what adding futures can do for you. yes or no?gin. do you want the same tools and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team 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.

it's time for the executive edge the world's largest cancer research conference kicks off in chicago this weekend meg tirrell will be headed that way. she joins us with a preview. a couple weeks ago i asked whether you were talking about asco i asked about asco, now it's th

real one >> that was the lead up to asco. >> what's a good word for a nerd or a geek? what do you prefer this is exciting, is it not? >> it is i like either of those words >> nerd or geek. dork it all gets summarized what happened in the last year. it's a breakneck pace. >> so much information more than $39,000, cancer researchers, investors and analysts are heading to the asco meeting, our annual check in on how much progress has been made on treating cancer immuno-oncology drugs continue to dominate. those use our immune systems to treat. as soon as tonight we'll get some of the first data in immuno therapy from celgene and

bluebird bio they are working on a therapy that modifies a patient's cells outside their own body and returns them to fight the cancer over the weekend we'll very more details including from loxo oncology, it was a major winner last year and excited wall street with its initial data that company in addition to blueprint medicines is working on genetically targeted drugs. tune in to "squawk box" monday for our interviews from asco with the ceos of celgene and bristol-myers. >> there's no cure for multiple myeloma, will this cure it >> that's what we're going to find out how long does it prevent the cancer from growing. they've extended the time patients live, but they have not cured it

the hope is these drugs will take us closer >> i like the -- how long has hugan been gone? we have a new celgene guy. >> little more than a year he's running for senate. >> certainly is. i see the ads. he has a couple different ads. one makes it look like melendez is in prison one of his ads the other one -- >> he was severely criticized by the senate >> i know. the other ad, i know bob, he -- >> he's been in here >> the other one, i'm not really a real republican. i'm very independent i don't care who is in the white house. i'll do what's right he's running from being republican because he's running in new jersey. it's so like -- i don't know lose as a republican, don't lose as a wishy-washy -- >> the drug pricing issue, though -- >> are you a republican or not

>> parties are changing. >> what does it even mean to be republican now right? >> fair is foul. >> but we'll have the current ceo of celgene on monday morning to talk about that company >> yeah. back to the -- what we were talking about. thank you. >> thank you, meg. >> doughnut day, you know that you see this thing >> what is that? >> bacon glazede doughnut with bacon on top of it. >> how do you feel >> thumbs down >> the doughnuts are here. >> you can start >> take a bite >> cheers. >> all right >> one >> one of many >> you'll beat seven >> we'll see he has 12 in front of him. when we come back -- >> it's not a contest. >> it is a contest and you'll lose if you don't do it. when we come back, home cooking

delivered to your doorstep some of the nation's biggest grocers are making a bet on meal kits we'll talk to the ceo of home ogef which was just acquired by krer you are watching "squawk box" on cnbc 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.

the line between work and life hasn't just blurred. it's gone. that's why you need someone behind you. not just a card. an entire support system. whether visiting the airport lounge to catch up on what's really important. or even using those hard-earned points to squeeze in a little family time. no one has your back like american express. so no matter where you're going... we're right there with you. the powerful backing of american express. don't do business without it. don't live life without it.

the first survivor of ais out there.sease and the alzheimer's association is going to make it happen. but we won't get there without you. visit alz.org to join the fight. we perform over 50,000 operations a year in places like this.

for the past 15 years, chubb has identified ways that we can strengthen our safety measures. and today, our hospitals have some of the best patient safety records in the country. now, we're constructing new buildings that will define the future of piedmont and chubb is here, insuring our expansion. two million patients a year depend on us. and we depend on chubb.

welcome back, everybody. kroger is acquiring home chef as part of its push into the meal delivery space this comes after the grocery chain announced a deal with okado to boost its delivering capabilities joining us now is pat vitelik. it's great to have you here. of all the plays i've seen out there with the home delivery home meal kits, this seems like a smart play the idea of teaming up with a grocer so you can offer your goods to a consumer any way they want to receive them >> absolutely. look, there's a great cultural fit between kroger and our organization as well couldn't be more excited to team up with the largest grocer in the u.s. when we ask our customers where would they like to see kits? they say they'd love to see them on grocery store shelves it's going to give us an

opportunity to be everywhere our customers are. >> i've tried the kits, but my problem is most of the time it's too complicated. second of all, i don't want to be constrained to having to deliver three, four times a week, whatever that may be i don't like any of those things what do you hear from your customers? you mentioned they want to be on grocery shelves, what else >> there are all types of uses for our product. most of our folks today since we're direct to consumer, you have to know the next week they're planning out the week ahead. what this is going to do is give us the opportunity to answer that dinnertime dilemma. so they can order us through click and collect or -- >> but how much of this is an effort to use this almost to market the product or market the direct to consumer business so that people walk into the supermarket, see this either for the first time or get reminded about it say actually, you know what?

i'm going too do this now for dinner, but i'm going to switch on, go to the website and start. is that the real goal? >> it's really both. giving an idea of scale, kroger's got 60 million customers every single week. we've got several hundred thousand active customers over the past 12 weeks. >> but when you entered into this deal and i don't know if you and they think about it the same way is this a lead generation business for your -- for the business i imagine is a much higher margin of business once you can get it to be direct to consumer >> it's a piece of it. that being said, kroger is already in over 500. >> here's my quick question. how do you go to 60 million overnight. >> it's going to take a lot of scale and a lot of good execution. i think we have a good partner to help us get there as well

>> how much is there involved to having a doughnut meal kit in. >> we'll put more serious thought to it. we've had a breakfast item in the past and it's worked well, so we'll continue to investigate things >> baked goods are harder. >> yeah. takes more time. >> thank you for your time we look forward to an update >> appreciate it coming up, we've got jobs in america. we've got the countdown to today's may employment report. we're going to talk market expectations u.s. equity futures at this hour let's show you what's going on after what may have seemd lied a trade war erupting yesterday nasdaq up 30, s&p 500 up about 13 all this could change at 8:30 when we get the jobs report. and remember, it is national doughnut day i'm one down more to go you're watching "squawk" on cnbc

hi, kids! i'm carl and i'm a broker. do you offer $4.95 online equity trades? great question. see, for a full service brokerage like ours, that's tough to do. schwab does it. next question. do you offer a satisfaction guarantee? a what now? a satisfaction guarantee. like schwab does. man: (scoffing) what are you teaching these kids? ask your broker if they offer award-winning full service and low costs, backed by a satisfaction guarantee. if you don't like their answer, ask again at schwab.

if you don't like their answer, it can grow out of control, disrupting business and taking on a life of its own. its multi-cloud complexity creating friction... and slowing innovation. with software-defined solutions, like hpe oneview, you can tame the it monster. hewlett packard enterprise. less complexity. more visibility.

globalinvestors are on alert as tariffs and jobs data take center stage. what you need to know is straight ahead walmart taking a shot at amazon prime the company launching a tech service. day three of the company's shareholder meeting coming up. and it's national doughnut day. nigel travis of dunkin' brands is going to give us a business update and serve us breakfast 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.

welcome back to "squawk box" right here live on cnbc. it is national doughnut day. i'm one down we'll see how we do. we're live at the nasdaq market site i'm andrew ross sorkin with joe kernen and becky quick it's jobs friday these numbers you're seeing on the screen, looks like the dow would open up 138 points higher. may very well change in a very big way. big swing. we'll see at 8:30 when we get the jobs number. a couple of stories are being closely watched by global investors. pedrosanchez want to vote to replace the prime minister and the trade war looks like it's heating up. eamon javers is standing by in washington and has more on the trade war story. eamon, good morning. >> good morning, becky we got the news a little bit after 9:00 a.m. yesterday. then the reaction rolled in throughout the day we didn't see the president talking about this publicly, but the white house did put out a statement on these new tariffs

on steel and aluminum from canada, mexico, and the eu the united states has been taken advantage of for many decades on trade. those days are over. earlier today this message was conveyed to justin trudeau of canada the united states will agree to a fair deal or there will be no deal at all. the president's decision here really dividing the republican party. speaker of the house paul ryan putting out a statement saying, i disagree with this decision. instead of addressing the real problems in the international trade of these products, today's action targets america's allies when we should be working with them to address the unfair trading practices of countries like china for his part, justin trudeau of canada had an indignant reaction here to this allegation by the united states ultimately that trade from canada on steel and aluminum threatens u.s. national security here's what trudeau said

>> these tariffs are an affront to the long standing security partnership between canada and the united states and in particular an affront to the thousands of canadians who have fought and died alongside their american brothers in arms. >> an emotional reaction there from justin trudeau. wilbur ross, the commerce secretary, said yesterday as he announced these tariffs that he hoped they would lead ultimately to a new round of negotiations between canada, mexico, the united states, and the eu all working on these issues together going forward. we'll see whether they can get to that negotiating point that the united states clearly wants to get to. what the administration said yesterday, guys, is ultimately having a robust steel and aluminum industry inside the united states is a national security issue that's why they used the national security mechanism they did to impose these tariffs. simply having that here is important in case of any g

geopolitical crisis going forward. they said they were well within their rights to do it. >> eamon, that may be something that gets more scrutiny based on the idea they brought up that same argument when it comes to the automobile industry. if you're going to make that argument for every industry, maybe it wears a little thin >> look, there are a lot of critics who say it's just a fig leaf to do what the administration wants to do anyway on trade. the president campaigned on this issue in terms of rebalancing trade deficits for his voters and are delivery politically and it's not really about national security but look, if we get into any kind of global confrontation, if there's another world war at some point down the line, you have to be able to build a lot of stouff here in the united states >> fig leaf. it's washington. like, recess appointment there are loopholes. people of both parties use them whenever they can. >> the loopholes have loopholes in washington. >> let me ask you one thing now. i keep hearing from others it's china. it's china with the steel.

but they export steel to some of our allies and then it comes in through there. is that not true >> but yesterday i read something that says mexico imports more steel from us than they export to us. that wears thin. >> what about canada and europe? how does all the chinese steel make it here since it doesn't come directly china to the united states? it does make it here >> yeah. and wilbur ross was asked about that yesterday in terms of all the different ways that they can sort of trick the system, right? you stamp the steel a certain way, you punch a hole in it, it doesn't count under the rules. all of that. and he simply said that the united states is going to be on the lookout for any shenanigans in terms of trying to get around these tariffs. but you can imagine that the steel industry will put its mind to at least in some respects figuring out ways around it. >> like a little dot on each piece of steel and all of a sudden it's a finished good. >> weather it's a finished product or raw material, all of that there are a lot of games that get played >> all right eamon, thank you very much. >> you bet let's get to villa marx who

has the two big stories. >> we've had two major events this morning in spain we had the ouster of the six-year prime minister rajoy. he lost a confidence measure and he's now being replaced by the head of the other party there sanchez. also in part thanks to what happened in catalonia over the last nine months or so, this confidence measure only passed because a very small basque party voted alongside them they said they'd do that if they did not see any conversations continue that's been one of the factors there. the other big story is italy, of course we got confirmation there would now be this new cabinet. it's been approved by the

president. will be the law professor leading that as prime minister they've got a new man in as the economics minister we'll get a parliamentary vote next week and big questions remaining about how they're going to interact with brussels with the european union. talking about tariffs, that's going to be one of the major, major issues whether italy will come on board with some of those >> willem, at least at this point when we checked, stocks in italy and spain were higher on this that's still the case right now as we head into the weekend. >> yeah. if you look at the equity market in milan in particular, it's bounced back pretty well over the last few days. in terms of italian bond yields, they've come down significantly. and in spain, i've just been looking at the markets there really no impact whatsoever from this vote. bank stocks doing gang busters this morning

>> willem, thank you very much we'll see you soon and we are counting down, kind of, to the release of the may jobs report. steve leisman joins us now with a preview. i'll wait for your preview, steve, but these come every month as you know. >> the monthly jobs report >> exactly every month, though -- >> it's that kind of analysis. >> it's a du jour. what is the key metric of the month, would you say >> if whether or not there are enough workers that's really a cool story here. we're looking for another strong jobs report. and the only -- i don't do french at all. i do russian though. >> you do. daily. daily. >> whether there are enough workers -- wait. i'm not going to do that question is whether there's enough workers to fill the open jobs take a look here at what we're

expecting. 190,000 is the consensus 164,000 last month unemployment rate holding steady moderate job gains we can talk about that to the end of the world why with workers it seems to be so modest. may adp payrolls coming in at 178,000. this is the jobs openings. you can see we're at or near a record high. 6.4 million jobs open. yeah >> we had a few economists say that's the number they most closely watch. what does that tell you when the chart's pretty much going straight up? >> it tells you there's a lot of people out there it tells you the economy is doing well it tells you there are employers looking for workers. >> and workers who feel comfortable quitting and looking for another job. >> the quit rate is a separate thing. one thing we look at is the job openings rate.

the effect of the participation rate is to keep the rate flat. so think about this. it's coming down and now what you have is the strong jobs number kpurti iexerting this upd pressure it's because of baby boomer retirement does that make sense >> no. >> people could be sticking around, drawn back into the workforce. you could have a situation where, for example, think about a recession where we see more younger people going to college than would otherwise go because the opportunity cost of being in college versus working in less right there. so you know what i'm not giving up a good job i'm going to go to school and enhance my skills. right now it's the opposite. right? you have situations where oil field workers and all kinds of trade jobs throughout this, you know what? i'm going to take that job

so it pulls people in. >> we haven't had to deal with these issues, you know, in a long time. >> they're good problems to have >> they're great problems to have we haven't had -- the way we've looked at these numbers historically, we haven't had to spend so much time thinking about this possibility >> and the reason we spent more time with it is because these are new metrics like job openings rate. the quit rate. give me the unemployment rate. give me the stuff i know but these are new ways of thinking about, you know, are we going to be able to fill the jobs out there how tight is the labor market. and then we can have the discussion. >> let's continue this conversation turn to the broader markets and the economy. joining us right now is anthony chan and joe seidel anthony, let me start with you first of all, ask what you think the unemployment rate is going to be like >> i think there's a chance you go down to 3.8%. you'll see the weekly average of claims going down. you'll also see we haven't been

creating a lot of jobs was basically weak in the last two months averaging a decline of 17,000 while the establishment survey gave you 150,000 so as you see more jobs being created in the household survey, that pushes down on the unemployment rate. >> the unemployment rate of 3.8% is something we haven't seen since the year 2000. if we do see that, does an unemployment rate -- what does that tell us broadly do you have concerns >> i don't have as many concerns as people might have because certainly there's a lot of academic activity that finds the present situations index tells you how tight labor markets are. if you look at that index today, it's not as high as it's been in the past when you get at 3.9%. what does that tell you? labor markets are tight, but not as tight as 3.9% so there is more slack and i love to look at the jobs opening rate, but i also love

even more to look at the job hiring rate. because there's some information out there that the job openings is firms really fishing for resumes. you really should be looking at the job's hiring rate. >> joe, when you're looking at this from the investor perspective, it looks like a great number then you have all of these other talks. with trade taux. all the big concerns even throwing tariffs on our best trading partners. and you have the issue of what's happening in europe. when you add those together, what do you do when it comes to your investments >> it's a great question when you look at the fundamentals, they continue to improve. right? we've seen earnings growth that's accelerating. revenues that are accelerating capex that's expanding we'll have the discussion on the tight labor markets and the benefits that brings to the u.s. economy. on the other side of that, it's that investors have been pretty much whipped by all of these

macro risks. i think the second half of 2018 is going to be more -- it's going to be better for equities. i think we'll see equity markets higher the underlying fundamentals continue to move we're seeing pes at much more reasonable levels for a late cycle environment. i think informsevestors are rigo be looking at these risks. >> it's having less and less of an impact. >> what's the explanation of that >> i think investors maybe just have worry fatigue right? that we've looked at all these issues, priced them out. let's face it. there's no president or pals mak - policy maker that wants to own

that it exacerbates the great depression i think if we put this into context, it success that these trade spats might be inflationary, right? because it's going to sort of i think lead to higher prices. but it's not the end of this economic cycle i don't think washington, d.c., is going to dictate the end of -- >> guys, i've read about a dozen reports this morning from wall street economists about this trade thing. there's three things one, nobody says this adds to jobs negative for jobs in the strong job market two, the macro effects are minimal at the current levels of trade and retaliation. three, it escalates if we get further. there is some bracing for tariffs on june 15th a week will go by before the market has to think about this again. but those are three consistent themes throughout the economic view of this action here >> okay. >> joe, anthony, want to thank you both for coming in

steve, you're going to be sticking around. well, you too. >> you want a doughnut >> i have to be. >> do we have time to talk about the doughnut with the bacon on it have you discussed this? >> those are not from our guests >> so we can't talk about it >> the doughnut pub beat dunkin' donuts >> bacon on a glazed doughnut. >> it's got more glaze than i've ever seen. >> i want to talk to nigel about this because these doughnuts today -- they're glazed but you know how you like it a crispy glaze you want it to be dry. >> if we're really coming out of the closet, i only took a couple of bites of this this has got more glaze -- >> oh, my god, i can smell it from here. >> and the bacon is seeped into the glaze. i mean, these are so good. >> right here. >> unbelievable. >> we haven't had these kind of

problems to deal with before >> have one. >> i'm not going to do it on national television. i'm not. >> why >> i don't know. >> it's a dry glaze. there's almost too -- >> doughnut connoisseur over here. >> you know what i'm talking about? >> stick to your area of expertise. coming up, walmart challenging amazon prime with an order by tech service. we're going to get an update on the news coming out of the company's shareholder meeting right after the break. . then later, new tariffs and president trump upsetting allies i'm eating, i can't really talk. on the moving trade war. >> check this out. >> we're back in a moment. every way we look out for those we love is an act of mutuality. we can help with the financial ones.

learn more or find an advisor at massmutual.com we can help with the financial ones. becareally 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.

walmart shareholders meeting, the one they're having, is entering day three. courtney reagan joins us with more on today's agenda from bentonville, where else? courtney >> we're in fayetteville, actually, here today, joe. because today is really the culmination of this big celebration that's been going on all week here. you'll see thousands of people starting to stream in behind me at the bud walton arena at the

university of arkansas they have probably 30,000, 40,000 people that will fill this arena walmart execs too. so we expect to hear from doug mcmillan he'll give the state of the union for walmart. he does that every year here going through accomplishments and cfo brett biggs will also go there u the highlights including probably the 15 straight quarters of u.s. comp sales growth the exponential online sales growth you know there's going to be a surprise celebrity and emcee guest. no word on who that is yet in a departure from years past, there won't be shareholder business taken care of at this meeting today. that was done separately two days ago shareholders did vote for the board putting easterbrook on there for the first time as well as sara friar. walmart showcased a number of new technologies including 50

bossanova robots it makes it more efficient then there's the fast unloader system in the back of 30 wal smart stores and this helped cut the time and effort and employee labor it takes to get all of that merchandise off the trucks and onto shelves walmart officially launched its new jet black program. this is done under store number eight. you might remember that's the tech incubator business that walmart announced about a year ago. this is the first program to come out of that it's being led by one of the cofounders of rent the runway and works under walmart now. jetblack is this membership program. basically personal shopping over text message it's $50 a month only available in manhattan and brooklyn to start. it's been in a pilot program for months you can text, i need a gift far 2-year-old boy's birthday party

who rides a scooter. then that personal shopper will help find the exact right gift for you and deliver it to your door often same day or next day. even if it doesn't come from walmart. they could be buying from pottery barn or other retailers. >> can we just talk about this service? i was thinking >> sure. >> it works if you get it in the same day >> this is a white glove, high touch service. >> it is >> if i say whatever i need, a mug, then someone has to text me back and say what kind of mug. then you're going to say something. then they'll say i'm thinking of this then they have to get it and bring it to me i'm thinking to myself that for each transaction, unless it's an easy transaction, has to actually cost them probably $20, $25. >> it's worth 50 buck ifs you do it a bunch of times. does it work anywhere? >> no. >> right now only available in manhattan and brooklyn and you

have to have a doorman because it is this delivery drop off. they don't want to just drop it off on any doorstep. especially as you know living in the city, you can't just leave it sitting outside they've been in a pilot phase for about eight to ten months. like anything, they said they're going to iterate, change maybe they'll change the fee structure as things go on. >> courtney, when i said bentonville, where else, you had to say fayetteville. you know, we used your wall from yesterday. were you in bentonville yesterday? >> i was >> they had bentonville on there for me to make me look smart >> that's okay that's okay. >> thanks. >> thanks, guys. >> andrew, you're right. it's a different customer because manhattan and brooklyn, they don't even have a walmart in manhattan >> do they deliver doughnuts >> don't know. canada fires back after president trump announced new

tariffs on steel and aluminum imports to our friends to the north. will other countries follow suit and retaliate against the move we're going to talk about that in just a bit.

to most, he's phil mickelson, pro golfer. to me, he's, well, dad. so when his joint pain from psoriatic arthritis got really bad, it scared me. and what could that pain mean? joint pain could mean joint damage. enbrel helps relieve joint pain, helps stop irreversible joint damage, and helps skin get clearer. enbrel may lower your ability to fight infections.

serious, sometimes fatal events including infections, tuberculosis, lymphoma, other cancers, nervous system and blood disorders, and allergic reactions have occurred. tell your doctor if you've been someplace where fungal infections are common, or if you're prone to infections, have cuts or sores, have had hepatitis b, have been treated for heart failure, or if you have persistent fever, bruising, bleeding, or paleness. don't start enbrel if you have an infection like the flu. since enbrel, dad's back to being dad. visit enbrel.com and use the joint damage simulator to see how your joint damage could be progressing. ask about enbrel. enbrel. fda approved for over 15 years. coming up when we return, more doughnuts as you'd imagine.

also the former bam bas door to canada bruce hayman is going to join us. plus the countdown is on may jobs report coming out in a little over an hour. the man that brings you the number, hampton pearson is going to join us on a special day for him. we'll explain that as well as we head to break, take a look at u.s. equity futures dow looking to open 138 points higher as we keep saying, all this could change one way or the other. we're back in a moment i'm on my third doughnut of the day.

it can grow out of control, disrupting business and taking on a life of its own. its multi-cloud complexity creating friction... and slowing innovation. with software-defined solutions, like hpe onesphere, you can tame the it monster.

hewlett packard enterprise. clouds, apps, and insights faster.

♪ good morning, everybody. welcome back to "squawk box" here on cnbc we are live from the nasdaq market site in times square. let's get to the stories front and center this morning. president trump just tweeting, looking forward to seeing the employment numbers at 8:30 this morning. of course we're all going to be getting that report right here on "squawk box." not something you normally hear

from the president because he does get a look at these numbers before they come out, but we'll see. i don't know if that bodes the number is better than expected >> i imagine the futures should move higher simply on the tweet. because he wouldn't tweet that if he thought the numbers were going to be terrible you look at that as a positive indication that the numbers -- right? he knows what the numbers are. >> there's always plausible deniability. in a trump economy, i look forward to the numbers every month when they're coming out. i'm just saying -- >> could be. we will see. >> you're naive, andrew. >> do you remember a president saying this? >> i remember great things happening. >> do you remember a president prior to a jobs report >> i remember all kinds of presidents, yes.

and i remember go with the tape of the demonstrations for why benghazi -- yeah i have all of them >> costco's results beating forecasts. same store sales were up by 7% then price cuts and higher shipping costs are pressuring costco's margins announcing it will hike minimum wage for workers to $13 an hour. all of that news together. also las vegas culinary union is reporting it has reached a tentative agreement with caesar's as we mentioned earlier, a midnight deadline came and went with no clear deal in place. tens of thousands of casino workers have been threatening to walk off the job if they don't get better pay and job protections. we will be joined from vegas in a builittle bit all right. joining us now were former u.s.

deputy trade representative ambassador robert holloman and former u.s. ambassador to canada bruce hayman. thank you to you both. what's amazing is that the criticism is pretty bipartisan at this point for all of these moves. so both of you can illustrate why this is bad. but could either of you come up with any possible scenario where this is a bargaining move that actually works out can't happen >> no. >> okay. ambassador holloman. >> it's almost impossible to see. the notion you tax american companies, you tax american consumers as a way of creating a bargaining chip with another country particularly our neighbor and partner of canada >> is it a campaign promise? and then he's got wilbur ross and these other guys that just

go along with what the guy at the top says i mean, wilbur's a smart guy where do they get the idea this is a -- >> it's fundamentally a rejection of every prior administration and every congress including the current congress believes. it says that canada is a national security threat when they're not. we're about to repeat this on autoparts around national security when it's not it's trying to turn upside down the trading system in a way that hits our closest partners. >> so it's probably not that he's getting bad advice. it's probably that he -- this is part of his america first and i guess you would consider it a naive counterproductive way of doing things >> hostile misplaced. ill conceived set of tariffs which make no sense. you were right in the middle of negotiations which were not going badly. in fact, the prime minister just

a week-and-a-half ago offered to fly in with the president of mexico to come together and reach a deal and the prime minister was very clear. he said we're ready to finish this and they specifically -- the vice president called him specifically put a -- the sunset clause on the table which means this thing goes away in five years which was an incredibly hostile move of the administration and said, this is a precondition to continuing these conversations to come into washington >> the national association of manufacturers doesn't even like that aspect of it because they say businesses will not be able to plan if there's a five-year window on these things >> that's exactly right. this is -- this is maybe an indication he absolutely doesn't want nafta that he was sending messages i want a fair deal, but there's no fairer deal than the u.s. has than its trade right now with

canada you know, it's a balanced trading relationship with 630 billion. we make things together. our supply lines are all integrated this a very hostile move >> walk us through the permutations of how you think this can play out both potentially in a good way if you think there is a good way -- i know how critical you are of the situation. and a bad way. >> ambassador holloman >> the way in which it can be very bad are not only in destroying the underpinnings of nafta. but essentially the u.s. is inviting other countries to retaliate not simply on the tariffs for this but the u.s. is asking other countries to declare their national security interests or reasons to flout the global trade rules. the biggest would be u.s. exporters across the board particularly in agriculture. if we claim that steel and autos

are our national security, other countries will claim that their food supplies, their semiconductor supplies are national security. and that's essentially the get out of jail for free card. so with the u.s. playing it, the repercussions are huge >> it gets worse than that, guys it gets worse than that. that's just the economic side. what you're doing politically and diplomatically by attacking our allies, trade war with allies, you know, that -- you don't have any idea what the unintended consequences may be over the next several years when we're calling our allies for favors or different things and they're going to remind us on how they were so hostile, this administration to them. >> that brings up a good point look, a lot of times we look at some of these deals and say these aren't fair. the fact china can have three times as high of tariffs on

ours that's how people are saying how can we change this and get far away from what we've been doing for decades at this point. your response to that would be what you mentioned this is not just trade, it's security >> okay. let's start with china "the washington post" reports today that after these tariffs that will go into place, the u.s. has put more tariffs on our allies than they have china. so i think it's a misplaced focus. china is a focus and we should continue to focus on what we're doing with china, but i think the president is not being strong there he's picking on our friends. so what you end up doing is we have work we can always do with our allies is different than how you treat your adversaries but right now we're treating our allies like adversaries with this hostile act >> ambassador? >> absolutely. this is a gift to china. the world was aligned with the united states in recognizing china's look around steel and

aluminum we've now turned our ally canada into a potential ally of china on these issues. it's nonsense. it's costly. it will hurt exporters and it doesn't accomplish what we're trying to do >> do you think he's playing some larger geopolitical thing >> at this point, it's a spat, right? >> meaning, the chinese are going to like me for this. you think it's -- >> i wish i could think that, but i don't. i see no -- >> so it's a knee jerk campaign promise. what is the rationale then >> i think it's the belief that america is treated badly by everyone in trade through every administration and every congress and that taxes are a way to get us out of this. so we have a tax cut for u.s. companies. but then we put a tax back on. it makes no sense. it defies logic. claiming this is national security everyone knows it is not and that is the slippery slope

that will haunt the u.s. for generations. >> because other countries can do it. >> absolutely. on things like food, semiconductors it is scary. it is frightensenienin frighteng >> all right, ambassadors, thank you. appreciate it. coming up, how many am i down i think i've eaten three doughnuts. >> you're a slacker. >> only three doughnuts so far >> it's the sugar. >> you got to pace yourself. coming up when we preview the jobs report and pay homage to the man who brings us the number every month. hampton pearson will bring us the numbers. and then nigel travis of den kin brands, there he is with the doughnuts himself. he's going to join us because it is national doughnut day >> how many have you had so far? zero >> i'm waiting for you, andrew >> we're going to talk about sales, vision for the company after the break. here's the latest doughnut count

for me i think we have a live graphic here >> this is his fourth. i had frequent heartburn, but my doctor recommended...

...prilosec otc 7 years ago, 5 years ago, last week. just 1 pill each morning, 24 hours and zero heartburn. it's been the number 1 doctor recommended brand for 10... ...straight years, and it's still recommended today. use as directed. - 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. at fidelity, our online u.s. equity trades are just $4.95. so no matter what you trade, or where you trade, you'll only pay $4.95. fidelity. open an account today. it is a bit of a bittersweet morning here on "squawk box. we are saying farewell to

hampton pearson who is retiring after 23 years right here at cnbc >> let's get to hampton pearson standing by at the labor department he has the numbers now. >> 663,000 minus 663,000 non-farm payroll jobs lost in march the unemployment rate, 8.5%. minus 524,000 jobs >> pearson, what is it >> 287,000 >> hampton, the numbers, sir >> 164,000 313,000. the unemployment rate 4.1% average hourly earnings up 0.3 >> thank you very much >> thank you for that, hampton >> sthauthank you, hampton pearn >> thank you for giving us the numbers as he does every month >> hampton has a few weeks left with us. today he is getting ready to deliver his final jobs report with us. we want to thank him for

everything he's brought to cnbc and "squawk box. i have no idea what we are going to do without you on these numbers. what >> thank you very, very much i feel like in the words of the grateful dead, it's been a long, strange journey over the last 23 years. and it's funny i wasn't prepared, obviously, for that sort of video greatest hits hits, if you will. i did a bit of my own research last night to get at the highs and lows of the jobs we've seen here and it's amazing, number one, because it's also a testament to the resilience of the economy. we had march 2009 was the low of minus 802,000 jobs and the bounceback, the rebound, may of 2010, plus 522,000 jobs i also did -- this is the final jeopardy portion of life at the labor department the labor secretaries i've had the pleasure of knowing over my watch, robert reich and alexis

herman, elan chao, as those names flash by, just think about all the economy has been through reflective of the jobs report. now, how did i know those factoids i've had tremendous help over the years from a lot of the researchers and hard working people at the bureau of labor statistics i want to give this opportunity to give a personal shoutout to those in it with us over the decade two hard working folks stacey standish and elena who answered every question we ever had so we could put it all in context going forward. and you have to say the jobs report for me was always very personal because it meant if i was standing in front of this camera reporting to you, it meant i had a job. and i really loved it on about half the time when the jobs report fridays would fall on

paydays as well. so it was always very personal, very news you can use, if you will but again, it's been a great ride and an honor and privilege to report for our cnbc audience who have been so gracious to me over the years the jobs report has kind of made me a household name, if you will, for a large portion of our cnbc audience. >> hampton, the honor has been all ours we want to thank you for everything that you've been doing. we'll see you in a few minutes i know you were late to get into the lockup now when you come back, i want you to tell us the weirdest thing in the lockup >> not sure i can disclose that unless i write a book. >> hampton, you're not stepping away now that the president is just going to tweet out the numbers himself. that's not why this is happening? >> not at all. my plan was in place long before that eventuality or possible reality is

>> we shouldn't say the numbers are tweeted out. he's saying he's looking forward to the numbers tweeters are saying of course he's looking forward, his economy is killing it. and then i have jason furman saying if it's a good number, he should never be given them in advance again because he's leaking. i can hear sarah sanders saying of course he was looking forward to it because he looks forward to it every month. that'll be the spin they put on it, hampton. >> that was always part of the fun for me was listening to you guys in the minute before you'd come to me live when you were going through the table with your final predictions on what the number would be. and of course i knew what it was. and that was how, you know, i got sort of, if you will, my red bull boost to pump out the number >> i always tried to, you know, there's 17 ways of seeing whether someone -- what they're thinking and i watched your eyebrows twitch you know, a little movement on the right side of the corner of

your mouth you never let on though. >> hampton, you're about to get locked out of the lockup room. >> yes >> we're going to see you in about 40 minutes thank you, sir >> back in a moment with doughnuts. >> yeah. check out the futures right now. they're up 153 now "squawk box" will be right back. it's national doughnut day and in honor of the sugary snack, "squawk box" is celebrating. dunkin' brands chairman and ceo nigel travis joins us to talk about the state of the business. to make things even more interesting -- >> we're going for ten >> we're not going for anything. >> -- you can count along with us as we watch andrew consume doughnut after doughnut after doughnut >> i love this it is so good. >> how many will he finish the show eating? stay tuned to find out "squawk box" will be right back.

♪ welcome back to "squawk box. it is the most wonderful time of the year because it's nashtional doughnut day i love doughnuts to mark the holiday, if you will, joining us right now dunkin' brands ceo nigel travis. >> this is a huge day. you're our biggest supporter >> if i walk into a dunkin' today, what happens?

>> buy any type of beverage, you get a free classic doughnut. like the glaze you're eating >> that's your favorite, right >> that is but here's the trick get it heated up my assistant ruth -- >> and you need an assistant to heat it up >> well, i could do it myself. >> i can't get it heated up at dunkin'? >> you probably could. don't ask in the morning you'll cause chaos it's a great way in the afternoon. >> with a scoop of vanilla too. >> that's the good news. here's a hard question here. we had jim chanos sitting where you were sitting i don't know if you had a chance to see this. he is short on your stock. he is not happy with your asset light model. you wanted to tell him what? >> in the afternoon i responded pretty strongly. i think our asset light model is one most other companies have followed it's great return on investment.

it's actually utilizing other people's money and it's interesting since he gave that prediction, our stock has gone up. we feel very happy with our growth prospects in future years. we've got blueprint for growth our franchisees are right behind it and the thing he misses is how you manage your franchisees. the relationship with your franchisees, dave hoffman who runs the u.s. business is doing a great job. we feel we've created the environment to succeed into the future >> what's different about your relationship because he doesn't like a lot of the quick service restaurants that have the same sort of asset light. what would you say is different about your relationship? >> i would say there's two things one is right from the start and i've been there nine and a half years now, we focus on unit economics, focus on franchise relationships. we listen. it's about listening and working together >> question about the in-store experience starbucks just had this whole racial training program. but also said they were going to

be -- you know, they all talk about being the third place. if you need to go to the bathroom, you can go to the bathroom what's the policy at dunn can in -- dunkin' >> the proposal is much more complicated because we're a franchise system these are individually owned businesses and we have different law and regulations around the country. so we are talking to our franchisees about the policy we're talking about the starbucks experience and we're seeing if we can come up with a more centralized policy but effectively we encourage guests to go in and treat those guests with respect. that is the underlying focus >> all right this could be a much longer conversation you don't even have to bring in doughnuts in >> how many have you had today >> i think this is five. >> seven is the record >> i had seven last time >> i want him to eat ten

>> i don't want peer pressure into eating. >> you're so stubborn. >> i should point out your pictures are on these doughnuts. >> there's a glazed doughnut that has our pictures on it? i'm scared of it oh, my goodness. >> you didn't see them that was when we were on break >> so andrew, will you promise me you'll eat your picture >> maybe if i get there. nigel, thank you we got theob js report, big hour of more doughnuts. we're back in a moment

breaking news this hour. jobs in america. the may employment report is just minutes away. our panel of experts standing by with everything you need to know the numbers, lightning fast analysis, and the instant market reaction plus what the report means for the fed, stocks, and the trump economy. a special hour of "squawk box" begins right now ♪ live from the most powerful city in the world, new york, this is "squawk box.

>> good morning and welcome back to "squawk box" here on cnbc live from the nasdaq market site in times square. i'm joe kernen along with becky quick and andrew ross sorkin you know -- >> doughnut sorkin >> no. you know who the guy's name was? you know, in the video -- i'm not going to say it. anyway, the -- i'm starting not to say things. maybe that's good. the may jobs report is almost here i think it started with lard and ended with -- >> you can teach an old dog new tricks >> yes the countdown clock now, 28:41 we'll hear from the great hampton pearson when that comes down unemployment is expected to hold steady at 3.9% president trump tweeting in the last half hour, looking forward to seeing the employment numbers on "squawk box" at 8:30 thois

morning. i added that "squawk box" in there. paraphrasing the futures right now indicated up 144 points. treasury yields have been trading below 3% for the last couple of sessions they were up a little today, though, the yield was. 2.9% >> everything's calmed down a bit. not saying that this is going to go away. we're going to get to our all-star panel of jobs experts in a moment. first let's get you caught up on other top stories. spain has a new prime minister opposition socialist leader p s pedro sanchez is taking over meanwhile in milan today, a new italian government was sworn in. it doesn't mean it's all gone at this point we will talk more about it this morning. stocks have been higher there. also sticking with europe, deutsche bank's new ceo is

trying to reassure employees and investors this morning amid more bad news downgrading deutsche bank's credit rating. being set with sustained underperformance deutsche bank shares dropped yesterday after the fed labeled the business as being in troubled condition this morning the stock's actually up by 3.25% some other stocks to watch this morning lululemon, shares are jumping to highs this morning the company's first quarter results beating forecasts. its performance was driven by a more than 60% increase from its direct to consumer business which includes online sales. the maker of yoga and athleisure wear raising guidance. they even had a thank you for joe kernen wearing his lulu. >> on break on set here i do a downward dog just to keep my energy levels up >> people don't know, those are lululemon pants. >> they really are. >> can people get a shot of

those? >> they look like they just -- i mean at the top of the show i stand up and people can see them they don't look any different than -- >> they're like sweat pants. they're stretchy >> like yoga pants >> they breathe. they breathe when i breathe. >> okay. ulta beauty beating forecasts. same store sales rose 8% but the beauty products and salon chain second quarter outlook is below what analysts were expecting then there's shares of samsonite, the ceo resigned after a short seller report. we're also watching the situation in las vegas i don't mean the golden knights, but we're watching that too. 1-1 is the series. a culinary union reports a tentative agreement has been reached with caesars in this case which owns 9 of the 34

properties facing a strike no clear deal in place and tens of thousands of casino workers have been threatening to walk off the job if they don't get better pay and job protections in their new contract. we're going to be joined live from las vegas a bit later this morning. we are getting ready for the may jobs report. on our panel this morning is kate moore she is blackrock's chief equity strategist also former cea chairman austan goolsbee is here and american enterprise institute's michael strain all making up our panel this morning. kate, what does the market want? does it matter what this job's market is? >> i think the market is super focused on clarity at this point and by that i mean they want confirmation that the fed is going to continue on exactly the past that is currently priced into the market. i would say significantly north of 200,000 or too weak which i

would say, you know, sub-110,000 would rattle the market. either change the calculation for how the fed is going to be thinking about raising rates or potentially change the path of this normalization which everyone wants and frankly has baked into stock prices. >> so not too high >> you know, we want this kind of goldilocks number to give comfort that the bottom end of the equity range is going to be well supported >> austan, you think that's the case just in terms of what the fed might be considering for any of these things? could a strange number too hot or too cold rattle the fed a bit? >> yeah, i think that's exactly right. i think the goldilocks range is getting wider. i think the fed has decided it's going to do what it's going to do and barring an extreme number, it's not going to change now, i think the dynamic of the president actually getting up and tweeting, has he ever tweeted anything about the jobs

numbers before i think he just illegally tipped that the numbers are going to be good i'm surprised there's not more attention on that. >> we were talking about this. i don't recall ever seeing the president tweet about a number like this. then again i wake up a lot of mornings and don't recall seeing what he's tweeted. >> that would be highly unusual and it's flatout breaking the law. you get the number the day before, the cea chair comes in, gives it to the president, describes to him what it is. if the president got up and violated the one sacred oath of the job -- >> it just says he's looking forward to it. he's not giving the number or saying it's going to be -- >> it doesn't matter you could not -- if the cea chair got up and said, hey, we're really looking forward to the numbers, they would go to jail >> if it's a good number by default we're all going to sit around like we are now -- >> and conjecture. that's all it will be. if it's a lousy number -- okay so -- >> tell that to robert mueller

>> so you're guaranteeing it's going to be a good number, austan or you think it's going to be a good number? >> if it is a good number, then the president better -- >> you're sitting there, there's a big "if" there again if it's not, that's the plausible deniability. >> if it's not, then that's great. >> here's sarah sanders later -- >> why does being czar -- >> i'm just going to say how they would explain this. this is what they'd say. of course he's looking forward to it. he's got the economy killing it. of course he's looking forward to it every month. that's what they'd say >> tell it to the jury tell it to the jury. >> what's that >> tell it to the jury >> the futures were at about 130 when he tweeted. they're still at 130 nobody has made any money betting on it at this point. if you want to buy some calls on the s&p, then do it. nobody knows at this point >> oh, come on >> let me ask -- >> i agree with you and i hope that's not true. i hope he did not tip the hand because that would be really disturbing now, not as disturbing as the steel tariffs, but still pretty

disturbing >> what would be a strong number -- i the president's idea of a strong number and what you and kate just laid out as your ideal number are maybe a little bit different. because maybe the president would like to see north of 200,000 to say that we are putting more americans back to work but you all just seem to think that a number that's right in line with expectations is probably better. right? austan >> oh, i think the president for sure wants over 200. if it could be 240, he'd be thrilled and actually we should be thrilled if we got a big number like that, it'd be great. >> what do you think the chances are it's above 200 do you think that with that tweet, it's now like 80% that it's above 200 >> yeah, i do. i do >> wow >> and it's funny because it's -- unless you actually find a paper trail or something, it's just going to be conjecture. it's funny the way he does these things >> it's not funny. >> i think it is he's trolling his haters and

they're all ready to jump to the conclusion that it's inside info >> yes because it is. >> but it can never go beyond conjecture unless you have proof. >> nobody thought the number was going to be exceptionally weak this month forecasts were calling for 80,000 and everyone saying there's a real dearth of available candidates and then he said that, then that would be different. but since it's at 190, we're not in a bad place. >> he trolls people that are consistently questioning everything he does it's funny to wa ctch. >> you think he puts this out just to -- >> i like to see it bug you and austan >> michael, what do you think? >> you know, i'm kind of regretting that i didn't put some money on the s&p this morning. >> it's not too late what's the problem >> i'm here in the studio. >> by the way, we know -- remember, there could be a winners curse in all of this that's the thing >> good news could be bad news >> that's what i'm saying.

>> it could be bad news for the s&p. >> that's right. don't over think it. >> it's also going to be hard to disaggregate we got political news out of europe people are feeling a little bit better we had a nice rally in euro stocks it's going to be hard to say at the open how much is going to be jobs driven. and how much of it is actually -- >> we were up 133 points above fair value before we heard any of these tweets. so we'll see how much it runs up from there or drops down from there. let's talk a bit about the broader issues facing the markets. we talk so much about what's been happening in europe this week then with the trade concerns where do you -- how do you kind of figure all of this out and why do you think the market's reaction is more muted to the trade concerns somebody made the point that if we had been having this conversation three months ago about what just happened with the trade tariffs, markets would be in a much worse place what's happened over time? >> three months ago we didn't have this exceptionally strong earnings year already kicked

off. at that point, there was expectation it would be driven by tax cuts. but i think what we have now after first quarter earnings and giving more guidance and announcing more investment plans, announcing more buybacks is real confirmation from companies that there's organic growth, that there's sustainability to it, and that it's not just about a one-time boost to earnings from the tax cuts so i'd say that's one of the reasons why i think we have this floor in the trading range but in terms of, you know, how to think about the markets, there's so many pushes and pulls. right? we have the geopolitics, we have strong earnings. we have good consumer demand, we have concerns around tariffs i mean, it's just -- it's hard to make a single, strong, and conclusive narrative that's why i think we're going to stay in this range for a little while but not necessarily plunge below. we'd have to have some meaningful fundamentals. >> austan, you said earlier the tweet this morning was bad from the president, but not nearly as bad as the tariffs

there has been universal condemnation from both sides of the political aisle when it comes to the new tariffs and the things put out there there's also been people pointing out hey, we have not got an fair shake in the past. how do we get to a better place? what would you say to all of that >> well, it's conflating a whole bunch of different issues. when the president said about china that they were stealing our intellectual property and we should be rough with them and try to get them to stop that, i completely agreed, if you remember and i said the way to do that is to get our allies on the same page and let's all go down there as a unit and force their hand this is the exact opposite i think there's actually a decent chance that with the president's action against our allies, canada, mexico, and europe, that china is going to go to europe and canada and mexico and say will you join us in filing a wto grievance

against the united states. and our own allies are actually going to stand up and do that. if it happens and kicks off a trade war, we're going to be in recession. so i really hope he just kind of backs away from this the way he has at previous times when the market reacted badly. >> i'm just trying to watch because it's going to be interesting the way this happens. let's say it's 300 >> you're back to the jobs number >> yeah. i'm back to the tweet. let's say it's 300 and then you actually parse the actual tweet that i'm looking forward to the number how do you go from i'm looking forward to the number to where you actually were front running the number and saying it was better it's just the language there is not -- i just don't know if you could -- >> okay, look. i know you love -- >> i'm just saying -- no, no it's just nebulous enough to where you can't -- i don't think it goes anywhere >> i'll tell you how it will work >> tell me >> let's say joe kernen is the chairman of the cea. and joe stands up for the first

time in his entire time as chair of the cea and says i'm really looking forward to the number. and the number comes out good. then what happens is joe kernen gets investigated and they go down and they ask -- the investigators come in and say when did you find out about the number have you ever tweeted before >> but we know he found out yesterday. so we know he knows what it is >> yes >> but by saying i'm looking forward to it -- how do you make the leap from -- >> if it was anyone but the president, you would have just gotten yourself a nice appointment with the fbi or the s.e.c. or somebody to come and investigate whether you were disclosing that the number was good and you would have to explain to them why you happened to get up and say this and it would go to a jury. and a jury would decide what they think your intent was >> if he's willing to tweet it out the way he just did, what do you think he's telling everybody

around him between 4:30 in the afternoon every thursday before the friday think about that for just half a second think about that if he's willing to do this publicly, what friend is he having dinner with saying, hey, by the way, i'm looking forward to the number tomorrow looking forward to the number. then what are they doing >> there are good numbers and bad numbers in the past. >> i believe there are people who have gone to jail or at least been investigated for just doing signals like i'll open the shades if the number is good and they watch the shades to see if the number is good. it's against the law to do this. he shouldn't be saying things like that. >> i think the actual thing its is nebulous enough to where it won't go anywhere. but that's interesting >> it's not that defensible. is there ever a moment you'll be like, actually, i'm not sure i agree with him >> if the number comes out at 300, then it's not defensible. if it comes out and it's 160, what are we talking about?

i just don't think it -- >> but no. i wouldn't say it was a good idea to tweet that out today or that it's not going to create all kinds of problems. >> i don't know. it's just nebulous like kate said, if it's supposed to be a good number anyway when we come back, it's jobs friday we will find out where the jobs are this month we're tracking the demand for home health aides. kate, what's coming up next? >> good morning. an increase in the aging population has already created a boom in opportunities for home health care aides like these ladies here. we'll tell you more after the break on "squawk."

all right. time to find out where the jobs are. every day 10,000 people turn 65 in the u.s. and nearly all of them want to age in their own home the demand is driving the growth in the home health aides and kate rogers joins us with a look at this growing workforce hi, kate >> hi, joe good morning good to see you. currently some 3 million people work as home health care aides that number is set to grow 41%

through 2026 we found out what it takes to work as a home health care aide just like these ladies here. take a look. as the aging population continues to grow, they're in demand this company employs some 5,000 caregivers nationwide focusing on in-home care for seniors. >> when you walk into the room, you introduce yourself and they are lit up that's a lot for me. >> on a typical day, she may help a patient get out of bed. >> on the count of three, i'm going to lift you up okay one, two, three. >> check their vitals. >> very good pulse >> or perform even lighter tasks like just keeping a patient company. but her most important job being compassionate. >> i love it i love it, love it, love it. i love being a caregiver i love giving care and i love the fact that when i

give the care, the clients or, you know, family members, they appreciate whatever little i do. >> the industry also faces a pending shortage of workers because there is so much demand. companies like home watch caregivers actually have these people as employees, not w-2 contractors. and they also offer them benefits packages with things like health insurance and vision back over to you >> what kind of pay are we talking in some of these situations what would a home health care aide make? and if there's a shortage, what needs to happen? is it a skills gap like we were talking about earlier? or where people need to be willing to pay up and offer more money? >> that's an interesting question we heard from the national association of home care and hospice. they say the average pay can be quite low. can be around $10 or $11 an hour but because there is an increased demand and a shortage of qualified workers, those who can ask for more money are starting to. if they have a more specialized

type of work they do and some of them are starting to get it but continuity of pay is an issue within the industry. which is why this one that has people as employees and not contractors provides a more steady and stable paycheck because they have clients they see all the time >> the other thing, we were talking about this while you were on. there's the education requirement, the money issue but there's a physicality to this >> that's certainly true and you can see she's been lifting and practicing doing that the right way she did it to me too it's quite intense you certainly have to love what you do you have to be strong. you have to do it the right way so you don't hurt yourself there's a lot of training that goes into it they do physical training like this and they also have an online university they put people through that deals with things like loneliness, boredom, some of the things the elderly might come into contact with they that can also impact you in your ability to give care. >> okay.

thank you, kate. see you soon >> okay. so if it's 200 or above -- >> on trump? >> yeah. we get to pitch forks and head for the white house. what if it's 181 then wdot init ae n'thk 's tipoff, right? i just want to know the over or the under. just so i know (siren wailing)

(barry murrey) when you have a really traumatic injury, we have a short amount of time to get our patient to the hospital with good results. we call that the golden hour. evaluating patients remotely is where i think we have a potential to make a difference. (barry murrey) we would save a lot of lives if we could bring the doctor to the patient. verizon is racing to build the first and most powerful 5g network that will enable things like precision robotic surgery from thousands of miles away as we get faster wireless connections, it'll be possible to be able to operate on a patient in a way that was just not possible before.

when i move my hand, the robot on the other side will mimic the movement, with almost no delay. who knew a scalpel could work thousands of miles away? ♪ coming up, the number of the

morning. how many doughnuts andrew's eaten. no, no, no it's the jobs report and the instant market reaction. three minutes and counting we will be right back. - i love my grandma. - 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.

but we should be seeing ymore range of motion., i'm fine. okay, well let's see you get up from the couch. i'm sorry, what? grandpa come. at cognizant, we're uniting doctors, insurers and patients on a collaborative care platform, making it easier to do what's best for everyone's health, every step of the way. you may need more physical therapy. ugh... am i covered for that? yep. look. grandpa catch! grandpa duck! woah! ha! there you go grandpa. keep doing that. get ready, because we're helping leading companies see it- and see it through-with digital.

we are just seconds away from the may jobs report

a lot riding on this month particularly because of what we've been talking about with the president's tweet. dow futures right now indicated up by 145 points s&p up by almost 14 points the nasdaq up by about 35. quick look at the treasuries let's get to hampton pearson who is standing by with the numbers. hampton? >> 223,000 may non-farm payrolls increased by 223,000 jobs. the unemployment rate is 3.8%. that's the lowest since april of 2008 hourly average earnings up 0.7% year over year we also have overall net upward revisions for the last two months an additional 15,000 more jobs than previously reported in may the private sector was on fire 218,000 newadded and they were widespread health care up 29,000.

construction, plus 25,000. professional and business services, 23,000 new hires as well only significant job losses, temporary help down about 7,800 nap 3.8% unemployment rate basically happened because there were 281,000 fewer unemployed persons last month the so-called real unemployment rate, 7.6% lowest since may of 2001 black unemployment, a major benchmark here down to 5.9% from 6.6% in may. that 5.9% number is the lowest since the labor department began tracking that particular statistic starting back to 1972. the labor force participation rate, 62.7%. average job gains over the last three months, 179,000 jobs per month. back to you guys >> hampton we should also say thank you so hampton. >> yep. >> because this is the final

time hampton is delivering the numbers. >> hampton, we want your story weirdest thing that happened in the lockup room. >> two things. one on them, one on me i do remember the time i was sitting in the lockup and we got word that essentially the number had gotten out ahead of time, so we were toast that day this one's on me and this story has never been told. there was the time when i kind of almost overslept and i got the jobs report in the two-minute window between when we got out of the lockup and come in front of this camera so i had this incredible adrenaline rush as i was doing the report because i was seeing the numbers for the first time as i was doing the report. so there it is >> hampton, we love you. >> thank you >> get some reaction, we'll go right to austan. we want to talk to the number itself, but before we get to that, we'll talk about whether -- i asked andrew, do you think we get the pitch forks and the mob ready to march on

the white house at this point? >> no. we should have an investigation. >> i'm talking to austan, please here's what i think. i probably think -- have some more doughnuts so if it was going to be 70, he wouldn't have tweeted. but we didn't get like a 300 which would have definitely indicated. >> oh, please. oh, please we're at 220 well above expected. lock him up. lock him up. >> this is enough for the investigation then >> oh, yeah. oh, yeah 37 if the cea chair had done that, he would be investigated >> we were at 140 on the futures. now we're at 117 so you had to know whether to go long or short based on the number which was also difficult. right? >> no. joe, you're not allowed to disclose the information disclosing classified information, lock him up >> okay. all right. >> joe, you're employing a school of moral philosophy often saying, just don't do it

you're saying if the consequences aren't so bad, then it's not so bad. clearly that debate can go on for centuries. >> that was a deep comment >> that was deep >> thank you >> kate, is this about what you thought or better than you thought before >> in my somewhat unscientific personal estimate, this was significantly higher i was a little bit worried around the retail side and had taken down my numbers. what i got out of this was this was huge confirmation the growth story is intact. when i think about what's happening in the equity market where you see people continue to crowd into the secular growth stories and adjust in those sectors they believe are in a lower economic regime, i don't think they need to do that anymore. we can really focus on a sustained and broadening out of the growth story throughout 2018 i would like to see more equit sector participation although we continue to favor tech and banks. >> rick santelli, if you bought

those futures on that tweet, you went the wrong way, i think. >> you know, i can't talk to you about any tweet. i don't really monitor the tweet world. i like to exist in the real world where i can touch things and not make up stuff. alls i know is the markets like the number i personally, you know, if i was picking my number today like we used to, i would have been 210 so to me it's not shockingly strong i don't like a dip in the labor force participation rate, but i'm very enamored with the up 0.3% month over month average hourly income. and it is throttled back by the point that the year over year is 2.7% now, not that that is an improvement. it's up from 2.6%. but the year over year doesn't really scare the market much it was the 2.9% revised out that made them nervous. but it is a solid wage number. and the average hourly work week

was constant i believe so from the standpoint of the market place, the treasuries moving higher in yield makes sense. think about what an amazing week it is. okay we see that the other brainiacs of technocratic nature in brussels and what's going on in italy gave us a close. we're back to 291. we settle at 2.93 last week. we're close to unchanged it is quite amazing. but i think the context of all those moves really gives us a much more accurate market movement indicator for this number and it's pretty solid. i'm a little disappointed the equities moved a bit lower on it but again, the reality of that game show will really start in earnest at 9:30 eastern. >> so the wage is 0.3% >> yeah. >> so that's better. >> i think the story here, joe, is that whatever was happening in italy this week is

overwhelmed by the words of hampton pearson where he said the private sector is on fire. and hampton did it just the way i did it which is you look down the column for positives and negatives. i see one negative wihich is temporary health i see manufacturing up 18. the service sector up 171,000. retail bouncing back up 31,000 it's the distribution of jobs. if there was one sector that was providing all the jobs, we'd have a problem that's not the case here and i think earlier this was pricing out. even right now it's going to maybe price that a little bit more back in two additional hikes almost certainly and then start to think about are they going to do that third hike. says two things. and it does so first of all, it says the president will get the

numbers. there's an affirmative responsibility to give the president the number. >> gets it around 4:30 in the afternoon. >> number two, it says you're not supposed to release the data >> beforehand. >> then it goes a second step and says not just not release the data, if you have it, you're not supposed to comment on the data so they make even the distinction between releasing the actual number early and you're not supposed to comment on the data until one hour after the release. i don't know if this applies to the president. i think we could have a debate, was that a comment, an observation, whatever. but they make a point of saying, shut up. >> two points. if he doesn't do this next month, right then what? remember we used to have the alan greenspan briefcase indicator? >> i wish i could tell the president, there is reasons for this so people don't take positions it creates inefficiencies in the market

eliminate that there's no reason for it it creates distractions. >> i think you said that very well >> all right. >> not even joe is going to respond. you agree, right we shouldn't do it. >> shouldn't be doing it >> joe likes efficient markets >> the caveat of when you said i don't know whether it's a comment or whether it's an -- you know >> right is the meaning of the word "is," joe? >> i'm bemused that the -- there is so much plausible deniability there. i think it's funny there's so much of a kerfuffle about it and even if you did to trade on it like the point we made, you don't know whether a good number is good or bad or anything else. >> that is true. if you had inside information, would you be able to trade it effectively? i've always wondered about that. >> and people -- >> obviously not we never know what the markets are going to do on these numbers yes. come on, guys. >> i was thinking, it's not just

the jobs number. it's not just the jobs number. i don't think we've talked enough about the 3.8%. let's get back to the couple of the economists on this austan, we'll start with you 3.8% on the unemployment number. we haven't seen that since the year 2000. before that i think you had to go back to the 1960s maybe that's what excited the president if there was anything on this. what does that mean and where do we stand as a result >> look. this is a strong number this month. we had some weaker numbers before on average we're doing fine i don't know that the growth rate is as high as thought the employment rate is colored a little bit by this labor force participation rate as we talked about here before. but it is a strong number. it's great we should be celebrating that over the last six years, we've come back from a terrible downturn and we're now in a pretty good spot so i think the president and the

country have a good story to tell on that front and i just hope that through tariffs or through some other thing, we don't mess that story up >> do they rethink some of the economic laws and outlook in a way that we see the huge rise in business confidence, consumer confidence in the wake of the election of donald trump and we see this acceleration in both the economy and in jobs as a result of the president being in power? >> well, i don't think we've seen any acceleration in job creation or in growth. you've seen a modest uptick in growth the job creation has slowed down a little bit i think the democratic party, as you can see, in public there's kind of a fight going on within the democratic party of should they go along with the president and if he's going to be 20% of what he says, should they go

along with that or fight it all the way? you saw that play out in the dodd/frank reforms i don't think that one is totally resolved i think almost everybody agrees that going after our own allies in a way that might start a trade war is a bad idea. >> and you think that's going to show up, though, on any of these numbers in the next month or two? >> do i? i don't think so because he might not actually do them >> you think that's it currently? >> no. >> it's clear what he has given in terms of a good amount of certainty when it comes to corporate taxes and positivity -- i hate that word -- is taken away. look, this is the beading that scott talked about from the trump administration when it comes to people have to get in line i mean, michael strain would probably go off on this because this is antithetical to everything folks like aei and

libertarians and the conservative thinking believe in you have to get in line to ask the president for an exemption this is huge market intervention this is the other side of the beating that you're going to get. you got perhaps from the obama administration >> michael, your thoughts? >> well, yeah. i think this trade policy is atrocious. it's irresponsible it lacks any sort of strategic thinking about what our actual goals should be in trade policy and how we could accomplish those best going after our allies ignores all sorts of other important geopolitical things. you can even make a reasonable case that tariffs that are targeted on china is a reasonable policy response to the way that china behaves and all sorts of things like that. but putting in tariffs against canada, against mexico, particularly when the nafta negotiations are going on,

there's no economic justification for that >> we all know, michael, that milton friedman said when somebody wants to sell you something cheap below their cost, the right economic response is to buy as much of it as you possibly can. there's a wonderful 1978 video of milton saying that. my point is beyond the economic effects or even despite them, it's the interventionism that is an issue here. >> that's right too. and we've seen this with some of the president's behavior around, you know, particular businesses and trying to save this factory in this little town but not this factory in that other town businesses tried to curry favor with the president you don't want that kind of cronyi cronyism you don't want people trying to figure out what will make the president happy, what will avoid a tweet, how can i go to the imperial palace and try to curry favor at the court that's not the way an economy

should run >> we will continue this conversation, by the way, "washington post" headline now trump breaks protocol. >> you know what he works the media that's for sure. he's got you in a state. >> by the way, if obama had put out this tweet, you would have been -- your hair would have been on fire remember you and jack wilson >> you were accused of the numbers. >> that's what some of my viewers are saying at least he just talked about it he didn't actually cook the number before. >> i can't okay >> i'm going home for the weekend. >> we need a commercial break. i'm going to have a doughnut coming up, we're going to talk to jim cramer on today's jobs report plus jane welles will join us with the breaking news out of las vegas. jane >> yep we've got good news and bad news as the state's largest union goes toe to toe with the gaming giants when the stanley cup returns

here, will fans get a cocktail, room service, will vegas be as welcoming when we come back?

finally. hey ron! they're finally taking down that schwab billboard. oh, not so fast, carl. ♪ oh no. schwab, again? index investing for that low? that's three times less than fidelity... ...and four times less than vanguard. what's next, no minimums? ...no minimums. schwab has lowered the cost of investing again. introducing the lowest cost index funds in the industry with no minimums. i bet they're calling about the schwab news. schwab. a modern approach to wealth management.

welcome back to "squawk box," everybody. that may jobs report out just moments ago. the economy adding 223,000 jobs last month that was better than anticipated. the number was closer to 180,000 for expectations the unemployment rate dropping to an 18-year low of 3.8%.

look at the reaction in the futures. before we heard that number, dow futures were up 145. right now dow futures up 139 s&p futures up by 13 and the nasdaq up by 33. breaking news out of las vegas this morning, a culinary union reporting a tentative agreement has been reached with caesars. jane welles joins us from the strip this morning good morning >> hi, andrew. we have a partial resolution at around 3:00 a.m. local time the union tweeted out this video and said that after negotiating throughout the night, it had reached a tentative agreement with caesars which involves nine properties and 12,000 workers. no details on the terms, but that puts pressure now on mgm resorts which owns many of the remaining properties and the remaining 38,000 workers who could strike at any moment these massive negotiations involve nevada's largest union covering bartenders, bellhops, housekeepers, cooks. the workers want more pay, they want protection as technology takes over their jobs.

they want continuity in contract in case of a change in ownership or part of the company turned into a reit. and they want stricter policies against sexual harassment. because in the me too era, some sins are no longer going to be tolerated. >> it's important to protect people especiall when they have to go into the rooms. now that october 1st, she mentioned was the date of that massacre of 58 people here tourism remained down since then, especially to conventions. las vegas hasn't had a big strike since 1984 which cost the economy an estimated $100 million. i've seen estimates a strike now could cost $10 million a day no walk out yet. a tentative agreement with

cease -- caesar. >> what kind of money are they asking for >> reporter: a 4% annual raise, which is wages and benefits which would be about $1 an hour more currently the estimate is the average worker when you fold in their benefits they make about $23 an hour. they want another dollar more. the companies have coming back with about a 2.7 annual raise. we don't know where they came with caesar's but it's a template from mgm. >> thank you, gene she's in las vegas you are there a lot. it doesn't take a lot to get you to go there. >> l.a. is close. >> as long as i can get a drink. >> i was going to say. >> these people strike and i can't get a drink, we got a problem. >> they don't want that. that might end the walk out, i think, jean.

up next jim cramer will join us live from the stock exchange. here are the futures ticking higher up 175.

let's get to the new york stock exchange jim, if you want to weigh in on the numbers. >> i think these are the numbers that indicate the economy is, as steve said, broad based rally. you know, manufacturing is strong and mining is strong. retail is strong one of the things i got used to if we had job growth it would be in health care to me, it was the segment of the economy that jamie diamond, that a warren buffett felt had gotten out of control these are numbers in construction way wasn't a good weather-related month and construction was 25,000. it's just great! and these are just great numbers. >> is that number to overshadow any of the concerns we've heard about what is happening in europe about what is happening with our trade talks and trading partners here. >> no, it's not. and what happens is this is whoever speaks last.

if macron comes on now i care more about macron than micron whoever speaks last can hurt this market. we have no -- we have no memory whatsoever for what is in front of us and, you know, five minutes ago. these numbers are great and the most important number we get is employment thank you for the great work you've done but i have to tell you it doesn't matter. if someone says something bad about new tariff or something the president tweets about german cars, then everything is wiped out. >> jim, were you looking forward to the number today? i was looking forward to it. >> look, i think the economy is -- we are booming. >> i was excited about the number i was looking forward to it. weren't you? >> i like --

>> we'll see you in a few minutes, jim a lot more coming up from jim on "squawk on the street" which starts in a few minutes. president trump's top economic advisor larry kudl wl owilbe on the show, too. "squawkbox" will be right back into retirement. and market volatility isn't top of mind. that's because they have a shield annuity from brighthouse financial, which allows them to take advantage of growth opportunities in up markets, while maintaining a level of protection in down markets.

so they're less concerned with market volatility and can focus more on the things they're passionate about. talk with your advisor about shield annuities from brighthouse financial- established by metlife.

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.

final check on the markets those are the best levels we've seen up 182 on the dow. the s&p indicated up 17. and the nasdaq up 44, lowest unemployment rate in 18 years. enjoy the weekend. >> make sure you join us on monday "squawk on the street" begins now. i had seven doughnuts. >> take a bite one more. >> seven and a half. ♪ good friday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber wages and the markets weighing in along with international reaction to the tariffs announced on thursday. a busy morning in europe new government in spain an