>> it was a big show today. >> he came in defending elon musk it's friday. make sure you join us on monday! "squawk on the street" is next ♪ good friday morning. welcome to "squawk on the street" i'm carl quintanilla with jim cramer and david faber. larry kudlow will join us this hour 201,000 jobs added futures down, though, maybe on rate hike jitters as wage growth in august is at a new cycle high europe is weak today ten year above 2.9 and the vix above 15 our road map begins with weed, whisky, and a flame thrower.

elon musk giving an unforgettable interview. the chief accounting officer resigns. u.s. wage growth is in a nine-year high unemployment 18-year low the stock futures are slipping now. trump's economic advisor larry kudlow is going to join us this hour and nike, the nfl, and the new colin kaepernick controversy. the president announces what was nike thinking? tesla is down in the premarket. the automaker said the fcc filing dave morton has resigned effective tuesday, september 4th. he has no disagreements with tesla's leadership or financial reporting. comes hours after musk makes another eye-opening move last night on joe rogan's pod cast. musk was smoking a joint and drinking whisky. >> sir, is that a joint? or is that a cigar >> no. >> okay. >> it's marijuana.

>> it's weed. >> out of a -- >> okay. like tobacco pot. >> ever had that >> yeah. >> i think i tried one once. >> probably can't because stockholders, right. >> it's legal, right >> totally legal. >> okay. >> how does that work? do people get upset if you do certain things it's tobacco and marijuana in there. that's all it is. >> sharers didn't care much about this until the ak dropped about 20 minutes ago dave morton has been there five weeks. >> yeah. that's suboptimal situation. ill advised stunt by a man who is now turning into who was the se vant. is he turning into an idiot? >> it's strange decisions he continues to make. by the way, i would not have tobacco with pot i think you should just have the marijuana. i think it's better for you,

probably. >> but, you know, people are not -- the idea that smoking that is more about the behavior itself and the decision making, i think, that is giving investors pause. >> and look, chief accounting officer believes this is such a red flag i was interviewing brent celek yesterday. he's done a lot of things right. said the model three comes out and it's good. the stock will goes up these things make it so that model 3 narrative is hard for the bondholders. and remember it's the bondholders that matter. not the stockholders the bonds keep going down. >> yeah. and the ak morton has a quote where he said i don't have any problem with the company's financial reporting or their leadership the issue, for him, apparently is the degree to which tesla has gotten public attention. more than he expected when he took the job just over a month ago. >> let's think about it. think about any other company other than tesla let's say we're talking about, i

don't know, jeff bezos he's a recluse know what i'm saying 1234 the reason we like amazon, besides the growth, you never see this kind of thing. you never do and, by the way, pot may be legal, okay. but we have 50 states and it's not legal in all of them and this is an international company. i don't think anyone should be in a situation where their company is completely under a cloud where he's completely under a cloud and he does something i regard as being unstable unstable behavior. >> the accounting guy walked in -- let's not forget about the madness of we're going private/we're not going private two week three week period that was -- >> i'm sure there's a lawsuit david is familiar with. >> what is the standing of a short seller i would tell you none. >> he does

but that decision making there, i think, people are still -- they haven't gotten over it. >> no. >> just the series of poorly executed and poorly -- poor choices. >> under the influence. >> there it is funding secured. i mean, come on. august 7th -- >> he joined august 5. >> sorry august 6th. >> the day after this is what he's dealing with. you can wonder why. >> did he do any due diligence as chief accounting office >> the current level at 259 that will take you back to april, i think. >> yeah. i haven't checked -- i was looking at the bonds last night, we're absolutely talking about a situation that i regard as being tenuous now. it's tenuous. >> but the question is, is the board of directors going to take any action here? and, by the way, i mean, really he does an interview and smokes a cigar -- so what.

>> should be put on leave. >> for what? not for that last night? >> he didn't break the law. >> no. >> talking to some guy. >> i'm going to pulitzer prize winning jim stewart's piece. guys, i'm fighting to say something other than unstable. because it's tv. if when we go to a commercial i'll tell you what i think this behavior is, which is the behavior of a man who -- should not be running a public company. >> i think that's the strongest i've heard you on tesla. >> i remember some chief accounting officers in another day who quit who got in trouble >>well, this guy was there for a month. >> yeah, but what does it say? >> again, the next day his ceo said we're going try to take the company public at a number i picked out of the air and it sounds like a decent number and he said it was secured funding but he didn't really have it but it would have converting most of

the public shareholders to private and a couple of weeks later we're not doing it. >> we saw these kinds of things. we did and my first book i said accounting irregularities equal sell i remember the top guy from in order -- nortel quit i said they have a vision. oh, yeah it was a bad vision. is this a good idea to stay long >> the bond market is right. remember they need to -- they will need to raise money, even if everything goes well. and, also, all the statements he makes can we duoover them and question if we can say 420

and what is under the influence? under the influence. >> you're mr. cannabis. >> i like canopy here. >> you're not allowed to -- you know, it's coming but it's not a canadian company in canada, look, if he reincorporates in canada, come on. >> remember jimmy kaine from bear stearns not a great example. >> i don't know. >> the interview is a couple of hours long and he talks about some actual meaty subjects like designs for an electric plane. he gets fairly emotional about our reliance on fossil fuels calling it an insane human experiment. >> yeah. but you have to remember, this is when he said right now would be where we are all nation would be supplied with electricity

from solar panels in northwest colorado and i chose to disagree with that. and a public setting and, you know, he said i was -- >> yeah. what >> he said i was -- >> of course. >> 50% chance i was a simulation this is a man who is funny and quick with words nice time frame to take a little leap. >> yeah. historically you said it's a stock and you're almost agnostic on it. >> brent celek is a smart guy. he just retired. >> yeah. >> who has invested very well. and, of course, he asked me what does your wife think she wants a tesla. isn't that it? i said no there's other issues chief accounting officer just resigns? smokes a joint during a pod cast are these actions that you just think are -- well, i mean, every day occurrences?

>> apparently -- >> this is bloomberg has that. >> the bloombergstory. he thinks he can beat boeing to mars let's say he's gotten a little unfocussed. >> yeah. we'll cover tesla. down 7% is quite a move. the payrolls come in better than expected 201,000. the average hourly earnings, though, for the last month up 2.9 from a year ago. that's the biggest gain since 2009 jim, you have faster wage growth and the labor force shrinking, which people argue easily it's a hawkish report. >> look, the fed has to move

this is a very strong economy. the 10 cent job growth we'll add it up per 35-day -- 35-hour week they're still going to five blow on that. moved up from dollar tree. >> maybe that makes sense because dollar tree didn't do -- >> that bad. the family dollar problem. >> it's going to be up today. >> i think this is is a perfect number i think the market is trying to figure out, okay, do we take profits ahead of whatever tariffs from china we haven't gotten them yet we'll speak to larry kudlow. i see three tech companies that have strong research today apple, palo alto, okay and broad com. those could turn around the nasdaq but not until midday. and these people keep selling like facebook.

>> are we going to take it to 11 times. amazon is down why is amazon down well, because the head, you know -- >> i know. i know you're right let's get serious about the sellers right now really haven't even thought about how good broad com has been >> there's hedge fund selling that is dramatic. >> winn resorts. >> winn resorts. >> but the idea that amazon is down as much as tesla. i think the sellers are saying, please, i'm up so big. i'm done and they're going to go to the movies a couple of good knew movies coming out. >> are they? >> i'm a netflix guy. >> we got to hear about your interview with brian roberts >> what they're doing in innovation, it's not your father's cable company. >> in his case, it is. >> the late ralph is a great man. i have another cable provider in

new york city, i don't know if you have them. if you speak into your clicker and say "put on mad money. it's like speaking into your iron hey, "mad money" and it sprays you into the face. >> i used to iron my shirts. i did. once upon a time. >> when we come back, larry kudlow, the chief white house economic advisor will join us to talk about not just the jobs number today but also trade. what is going to happen with the tariffs, maybe tax cuts 2.0. we'll hear what comcast chief brian roberts told jim on "mad money. take another look at the remarket s&p and nasdaq down for the week and futures suggest we might wipe out the dow's gains for the week, as well. back in a moment 6- oh, and there's the closing bell. (sighs) i hate missing out missing out after hours. not anymore,

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brian roberts of comcast speaking out about the changing media landscape last night on "mad money." he told jim he's disappointed with the decision to walk away from a bidding war from parts of fox. >> that's one of my disappointments this year is fox and sky triggered by rupert murdoch's decision to sell the company. why wouldn't we look at it we found it was undervalued. we put in a price, eventually disney offered more, and we

walked away. but people then took that and made a narrative that said we didn't love our core business when, in fact, our core business is having a renaissance. >> definitely got the argument that people tried to make, at least, about the company. >> we have to think about a year ago. and what was over used word now. the narrative was that cord cutting is real. video is going down. that it really is a sunset time. and that's really quite pretty much changed the deceleration of cord cutting. make it so they could, the stock could be higher, i think, if it hadn't done sky before the two big mergers. the stock dropped 7% and dramatically outperformed the s&p. i think this is the same scenario down 7% and dramatically outperform s&p that was my words. brian was reluctant to say when sky is going to get done

i look at this media landscape and say cbs versus these guys. i would rather be comcast. >> yeah. you would rather have distribution of content. on sky, you know, we'll have reporting on that, probably, at some point to indicate whether or not disney/fox is really going to try to compete or not initially when comcast bowed out, my reporting was it seemed likely they would. that's the potential of working some sort of a deal for the 30% of huh lu. but we will see. on the other stuff, the cord cutting continues, of course it will be a backdrop to fundamental analysis of the company's prospects for years to come there's no doubt about it. and, yes, it's decelerated but you know and we know where it's going. >> but if you tried -- >> the question is whether you're positioned well enough for that many would say comcast is. last quarter was a good one. they're a huge beneficiary of tax reform

it's not discussed as much as it should be but it's on cured by the things going on this year. outside of just benefitting from a much lower tax rate and being a key domestic taxpayer. >> incredible cash flow. the technology i'm seeing now would make the millennial's, i think, a little more excited a little less to cut cord. what is going to come out, i had a sneak preview. all i can say is my daughter, who cut the cord, is going to say, dad, how do i reinstate it? i have to tell her the truth, i never stopped paying because i can't believe she cut it. >> it's funny because you have the distinguish, to a certain extent between the shareholders base and what brian roberts is a man looking toward the future and saying i'm going to do whatever is in the best interest of this company ten years out. i'm not going to do anything and buy the stock which is a lot of what shareholders want him to do. >> so he has to get even get the right shareholder base

he's going to be doing something. next year it's going to be something else and the next year something else that's what he does. >> he doesn't like the fact his stock is down 10% for the year there's pride. he has pride in the city and pride in the stock he's doing both. he's moved a whole city over to where headquarters is. he did he moved the whole city. where did the buildings go they got torn down for this. but i think history says if he does this deal, you must own the stock. >> all right. >> must. and you say you're going to have reporting later on is that a show after i'm done? >> i mean like next week. >> thinking ahead, hello not just buying back shares. >> a lot of my reporting i do and i don't actually share it.

>> the long-term comcast versus the s&p. >> yeah. >> you shouldn't have been in the s&p. all you indexers and worry about single stock risks you should be worrying about single stock missing. >> got it. we'll get to santelli a little early today to make room for kudlow after the jobs number and after the opening bell good morning, rick. >> good morning, carl. you know, one chart is all you need to know today this chart is average hourly earnings year over year up 2.9 haven't had a 2.9 number on this particular metric since may of 2009, as you can see on the chart. earlier in the year, we did. it was revised lower that sparked an early year scare that pushed interest rates up. don't you remember and up .04 month over month. that's the best since, i believe, september of 2017 there's one read that equals it prior to that, but breaking

through that .5 read follows 17. how did it all play out? well, let's look at a two-year guess what september '07 again 269 currently. 268 is the high. and that's the high close so we want to pay close attention. we know interdate can back off a little bit if you look at 10s you can see we popped. it hasn't closed since august 8th. if you look overseas the bund popped a bit, too. the two-day chart shows even though there's correlation, the linkage is getting more separated. they just don't have the horsepower to kick up not even into the 40s finally, the dollar index improved it was down about .10. it's up .25. it's nowhere near some of the highs from august but it is holding its own and it does give a glimpse into how markets respond to better than expected

data, if you're looking for wages to go up carl, jim, david, back to you. >> thank you talk to you in awhile. rick santelli. as we go to break, we'll get cramer's mad dash in a moment and count down to the opening bell also, ahead today, sara eisen's exclusive with the new ceo of mondelez and we're watching not just futures but the jobs number looking for developments on would be nafta deal, chinese tariffs, on tesla, and more. don't go away. imagine traveling hassle-free with your golf clubs. now you can, with shipsticks.com! no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. sending your own clubs ahead with shipsticks.com makes it fast & easy to get to your golf destination. with just a few clicks or a phone call we'll pick up and deliver your clubs on-time,

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in just a few moments, larry kudlow, director of the economic counsel will join us to talk about the jobs number today. trade, taxes, and a lot more in the meantime, futures are weak and "squawk on the street" continues after a short break.

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to helping your company reach its goals. u.s. bank -- the power of possible. the opening bell is sponsored by u.s. bank. the power of possible. welcome back we have about a minute to go we'll squeeze in a mad dash. where are you heading? >> the story line today is got to understand it it's they delivered a number, you know, on every metric. no longer. no longer is the story line what the heck was he doing? now it's cash flow, buy back, substantial dividend it's brought back $6 billion.

[ applause ] [ opening bell ] over at the nasdaq therapeutics focussed on the treatment of rare neuro muscular diseases so jim is watching avgo. it brings to mind what the semis did yesterday. the stocks did 2.7 micron down almost 10%. >> 3.99 time earnings. the only time you see that you saw it with the deal it was at two times earnings and it turned out the earnings were half of what people thought. micron's numbers estimates have to come down before that stock can have a serious

and no one has done that yet they are afraid it's not as weak micron is going ahead of a crash that habit occurred yet. >> yeah. some people get worried. >> i think facebook has to buy out social media and micron has to bottom. i think it could today look, even the worst stocks bottom these are not the worst stocks. >> yeah. but broad com can lead everything up. i think everybody forget it was the leader for a long time and nvidia it's not doing as well because people think that amd is too much and the market cap is taking share. i think that's wishful and you know no one is a bigger backer i think it's wishful to think that amd is going to be able to compete with nvidia at the highest level. nvidia has to stop going down, too. >> let's talk campbell a little bit. it's a name we discussed quite a few times.

we told you that was expected this morning they did, in fact, file a proxy to replace all 12 board members, again, we pointed out were up. interesting timing on the part of campbell. and focussing on the two businesses the sale of international being one part and end fresh the other. another part of their plan but he didn't like it. he cede you can't trust the board with the keys to this company. and you can't believe they're going to unnecessarily be successful in executing on the plan they laid out and, therefore, you should support his nominees here is some of the letter best path forward to -- excuse me, since 2016 alone the board has overseen of 7 billion of value.

here is poorly conceived acquisitions over levered the balance sheet he goes on to say the board remains beholdened to the agenda and the minority of course interesting i pointed this out the math here is not going to be easy. >> no. you've got he's talking about marry alice malone they control between them about 35%. other family members make it jump into the high 40s -- 30s. when you look at the 50.1% of actual votes of votes that were cast that you need to win, it gets tough you need at least 75% of the votes that are not family owned or loeb owned to win

not impossible but very difficult to get 75% of all votes cast to go your way. maybe it'll happen we'll see where it comes out we'll see how nasty it gets. whether he maintains fairly high-minded tone here. he's trying to win over some of the family members who are not on the board, perhaps, to his side to really come strong i don't know at the same time we also have the idea, well, is there a buyer there? what i'll tell you is it doesn't seem that is the case. i've talked to any number of people familiar with the process. they don't capability in any way there was engagement with kraft heinz nor a belief that kraft heinz is there in a meaningful way. and loeb, i don't think, necessarily thinks that either at this point. >> no. >> i think it's more about putting in a team from his perspective that is going to appoint the best ceo possible and executing and then maybe you

enter into the idea at some point of consolidation, if he wins the battle. >> do you see he -- >> yeah. >> that's meaningful. >> strawbridge has been with him since he filed. >> yeah. a philadelphia family. it has become a squabble of philadelphians it's supposed to be a higher standard of when they would sell frankly, they have bought a business that you said when it was bought, the snack business, you said it was way more than they could handle. >> yeah. somebody told me -- >> they seemed to have overpaid, i think, it's fair to say. it's going to be an important component of the company this will be an interesting battle, no doubt and remember the math is tough by the way, when it comes to an actual sale, again, as i indicated, it doesn't appear to be that is what either side is focussed on now at all

you need two-thirds behind you it's not an m & a story now. >> no. thank you for saying that. they never expanded it one of the things you see, they still have aisle space and there are companies that covet aisle space. but they don't covet that balance sheet. loeb is a tough guy. everything he's gotten involved with behind the scenes is work this is no longer behind the scenes >> yeah. let me read a bit from campbell's response. they say the best path forward is optimize the company's portfolio and divest certain

businesses then they say it we remain committed to evaluating all strategic options. >> campbell's soup is not a millennial favorite. millennial's like to look at the label on the back. ever look at the label there >> a lot of salt stuff. >> they have some things that me lanial -- millennial's don't like i'm so sick of them but man they care. >> get used to them. the percentage of the overall population is getting bigger all the time. >> we're trying to put the 8% drop in tesla shares in some perspective. it's not even in the top ten of down days in the history of the stock. the worst day ever was in 19% drop in january of 2012. >> you know 83. >> it's the bonds. >> 83.25 83.25! >> not to mention, they have some convertibles that conceivably they have to make good on, right, jim?

>> right. >> they're not for awhile but they average the stock price and it is below where it need to be for them to not -- >> yeah. i don't look at the stock price anymore because that's emotional. i look at the 2025 bond and i look at it inexcessively when you see something that is 83.25. that's chief accounting officer leaving. >> we have to see what the quarter looks like, and, by the way, the brief foray into the idea of going private did indicate there may be money there in the former private equity that is willing to come in at some level, jim. i don't think you can forget that i did hear after this all kind of came and went that the idea of a private investment into a public equity is something that is alive after the quarter is reported. >> that's why. >> at this point, let's say a silver lake came in and they added a couple of board members. this speculation, would that give confidence?

>> absolutely. silver lake would be good. there's a couple of firms we would just say, okay, they've scrubbed it and maybe the top guy is wacko but the -- >> the adults in charge. >> yeah. are you waiting to see if we get something from the board >> the board is just -- i look at the board of facebook and alphabet and twitter i look at the board of snap, look at the board of tesla they have one thing in common. they don't like to talk. they just don't like to give their views. and i think that, really, let's say you had mcinerney on the board. you can see frank blake. they might say we have to have a time out here. i'm talking about adults people are so in awe of when you challenge proctor, the lead director, what you say is

he's such a hitter where are the hitters? where are people who are not afraid of the ceo? that defines a good board. >> you mentioned twitter, jim, below 30 for the first time since may. all though bouncing back a touch now. but did hit 29. >> as they permanently suspend alex jones yesterday. >> he said he compared it to 100 times worth than mccartyism. that was ill advised apple could be the key to the turn here. all right. they're absolutely no flies on amazon during this period. >> yeah. >> with, you know, there was no empty chair for amazon that has to turn micron has to turn workday has to keep going up sales force has to turn. then you'll find the nasdaq growing because palo alto had a fabulous quarter. >> quick, jim, back to cbs. >> charlie boyd?

>> charlie boyd. up 1.7%. no new news to share in terms of either settlement right now. that is being with mr. moonves or and/or mai. that continues feverishly, from what i understand in terms of trying to get both of those potentially done stock keeps going up kind of interesting. to those that it will lead to cbs being sold separately. i don't know why they would think that i would reiterate the idea of the tax ramifications of either one for sale for national amusement and the controlling shareholder. you would be paying a corporate tax. that's the tax efficient way to do it if you're the redstone family some people should keep it in mind. >> a year and a half stance is weird. i don't quite understand it. >> i don't get it at all.

>> we'll see where we end up with we'll bring you up to date if we hear anything. >> do people think that moonves was an impediment to earnings? >> no. >> you think it might be ill informed people? >> i think there's a part of it that and the cleaning the slay idea, jim. okay, you know, at least we're going have an idea of what cbs will be again. as i pointed out, mr. moonves hasn't been focussed on the job the way he has been previously. >> right. >> i think fairly well thought of he's going to be interim -- >> i know. >> he's been involved in a lot of key decisions of the company. >> like, look, first congratulations because you got credit for the scoop, which is important. >> everywhere. >> yeah. as a network congratulations. >> yeah. >> second, okay, you know, there's someone else we talked about leaving. tim armstrong. >> yes. >> tim armstrong. >> yeah.

verizon, you mean? >> yeah. >> both the division -- >> yeah. what precipitated a lot of this. >> i was with tim the day that the new ceo was announced. i have to tell you, i'm not saying it's unexpected there's been turn over of the company. >> armstrong has been there for some time. >> yeah. he traced out a division i thought was start and could move the needle one day it's just disappointing. it's disappointing. >> as we mentioned earlier, back to the key economic data labor department said 201,000 jobs were added in august. wage growth a new cycle high going back nine years. unemployment at 18-year low. joining us this morning is larry kudlow good morning

good to have you back. >> good morning! thank you, carl. i appreciate it. >> are wages the headline to you? >> wages and this number were very good. 2.9% year on year and 0.4. i like that. i also like 201,000 nonforeign payrolls because of the skewed seasonal adjustments some people thought that number was going to be 50,000 lower, but it wasn't! and it shows the strength of the economy. on wages, carl, can i just add something, you know, my pal the cea he just put out a great report when you -- after tax, after inflation, after bonuses, after benefits, actually, what we might call real wages are rising 1.4% year on year that's a big number. and let me add one other point here from the employment report

today. average hourly earnings times hours worked, okay, it's a proxy for wage income 5% if you take out, let's say 2% inflation. that's plus three and i hate to throw all these numbers at you, but real disposable income, which i'll call paychecks plus 3% the economic boom continues it's the big story of 2018 jobs, growth, wages. doesn't get much better than that. >> larry, jim. how are you? >> good. how are you, buddy >> i'm good. let's talk tariffs and trade we keep hearing and i know you are close on europe and getting rid of tariffs we had good news from mexico hope for good news from canada but, larry, and i know you'll love this. i speak to so many ceos, as you know, i'm hearing ceos who are

saying, you know, we don't need to manufacture things in china we think that china is going to cave anyway. where are we with the trading partners after a strong job number >> you referring to china, jimmy? >> all of them but china i keep hearing ceos, larry, saying, you know, our president making it so we can move out of china. we don't need to manufacture in china. that's going to cause china to come to the table and do what we want >>well, look, i wouldn't put it quite so definitively. we are still talking with china on a number of issues, as you know those talks will continue to go on we want lower barriers across the board. you know, zero tariffs, zero non-tari non-tariff barriers, zero subsidizes, stop the ip theft, stop the technology transfer allow americans own their own

companies. those have been our asks for many months, and so far those asks haven't been satisfied. however, hope springs eternal and discussions continue we had a small contingent from china here, what, two weeks ago or so. we'll see. look, our view, the president's view is not to destroy the chinese economy. we're not trying to put him out of business. we're trying to get them to join the international trading nations world. and be a citizens. and abide by the rules for the first time in some 20 odd years. and if they lower their barriers, and leave us to our technology innovation, you'll see a ton of the american exports. which will shrink the trade deficit. that's the point lower barriers, open markets, quit stealing ip and technology. these things are not hard. so we're waiting to see if china

will just say, yes remember nancy reagan, jimmy >> just say no to drugs and she was right about that how about china? once in awhile, just say yes to one of our asks so we can move the process forward. >> i love that. >> yeah. thank you, larry structure reforms tougher. back to europe on trade, larry these reports they were willing to get rid of all tariffs was that true? if it's true, why wouldn't we take that deal >> well, i mean, look president trump they talked about abolishing tariffs and nontariff barriers and so forth. we'll be continuing those negotiations ambassador lighthizer is going to brussels this coming week to meet with celia malgrom. i'll probably see them at the united nations meetings in a couple of weeks.

we're optimistic there are a number of transaction actions on the board. things like soybeans and beef, perhaps things like military sales. there's a lot of things on the board and i'd say the relationship is growing between the u.s. and an the eu i look the good will i really like the good will. i talked to my counter part bob lighthizer talks to his. perhaps president trump will talk again it's moving steadily it's an early process, and color me mildly optimistic about that. >> all right, larry, today the journal tries to talk about whether or not there's the possibility of confronting china with -- as you've said in the past, united front get the nafta deal done, bring in the eu, maybe even bring in japan, they argue, and then deal with china as a group? is that possible >> yes i mean, you know, we've talked through the month and months and

months, let's see, a trade coalition of the willing, eu would rather do business with the u.s. than china. i think the same is true with japan. i think the same is true with mexico we're moving is true with mexico i think the chinese may find themselves more isolated if they don't come into the global process. and if they don't provide new information. and begin to say yes to the asks of president trump president trump continues to speak well about president xi, but they've got to show some action, i'm not in a mood to bash anybody today with all these great numbers. can i say the biggest story in 2018, the biggest story in 2018 is an economic boom that virtually no one thought possible

let's see, the atlanta fed, gdp now is predicting, let's see, 4.4, 4.5, 4.6 after the third quarter. as we discussed, the wages are rising very, very well this is great stuff and it's widespread i don't know if you saw, ism manufacturing, boom, ism services, boom there's no let up to this. consumer spending, they're probably emerging into a capital goods boom right now, really this is kudlow supply side, low tax rates, expenses, repatriation, lower marginal tax rates for individuals and so forth. this is the takeoff in our view, 3% plus growth, it may be 4% plus growth, that's the big story in 2018.

sorry, it's so hot here i can't hardly talk. that's the big story in 2018 all this other stuff is side ramp stuff >> that was kudlow, this is cramer, larry, you know i know stocks china is up 18%, our nasdaq is up 14% we are strong enough to take it to them. we are going to make them say yes instead of just being hopeful. it's our turn. >> jim, you know, in my old age, i'm becoming more diplomatic >> oh, okay. >> now you got the edge on me. >> it you and i are both growth guys, you and i are both stock market wealth guys, you and i want to help every single investor around the world, i think that's still fair for both of us. china, i think has taken some missteps and i don't think they have joined the conversation with the kind of intensity i would like all i'll say is we're continuing to talk, and things can get better but yes, what are these stock

markets telling you, china is moving lower in their economy. the u.s. is moving higher, we're the hottest place in the world, investment is pouring into the u.s. the weakness in the chinese currency is a function of people withdrawing their investment it the steadiness and the strength of the dollar is a function of a coming investment here, all right? that tells you something, you're quite right, markets don't lie, they give you the directional signals. i want this to be win-win. but right now, all i can say is, new policies from the trump administration on taxes and regulation and business success, and rewarding entrepreneur ship, new policies are working all right? it may be the greatest story never told it may also be a growthier story, mind you, jimmy, growthier, we're still moving, more growth, i call it growthier, it's a kudlow word,

but it's already been printed in the "washington post." feel free to use it. growthier, i think that's the story. >> when people are talking about whether or not gary cohen is still off the president's desk are you still working impulses instead of on trade? >> including the campaign, i have spent the better part of 2 1/2 years, almost three years, promoting, developing his progrowth policies, i have devoted myself to it, i have worked with him, i am honored to be in this position to help him. and others of our team on a day-to-day basis we may have our discussions regarding trade and other matters, what's the best way to

solve the world trading balances our trading system is broken, we've got to solve it. i saw a couple of publications say that i and others here are responsible for that crazy editorial. that is just nuts. nuts of course i have nothing to do with this. i have been working my tail off with this. and he's on the right track. you know, instead of these egotistical personalized vendettas, to the president himself, he's working to make america stronger at home, to make america stronger abroad to take reforms on trade and elsewhere, that will help everybody around the world for world peace and security why don't people try to help him instead of harm him. or why don't they come out of

the wood work and at least display some honesty and be quoted on the record so we can engage them in a decent discussion i don't do personalities you guys know that if there's a disagreement, then come out of the wood work, put yourself on the record and let's talk right now taking pot shots at a president who in my opinion, nothing's perfect in the world, including me but in my view, in less than two years, he has changed our whole economic story, he's changed our whole international security story, he's draining the swamp and he's taking measures that americans love to see. and by the by, although i'm not a political guy, may have a bigger impact come november than you all think. so, no, i didn't bring anything, i don't know about these stories, i don't know anything about that, i go to work every day and, jimmy and carl, you know, i have said this to you before, these are long held

kudlow views, we're operating pro growth models, i have put my heart and soul into this for how many i think we're going on to four decades. i come down here every four or five years to try to put things back together. i'm going to say this, it is my honor to serve president trump on a daily basis to make this story better, and i'll say it again, folks, all right? 2018, these stories are not the big deal, the big story in 2018 is an economic boom that most people thought impossible, but it is happening before our eyes, this argument has the added benefit of being factually true and it's going stronger, the data show is not letting up, it's not one time, it's going stronger that's the key point, america's going to be stronger, more optimistic and a happier country and i hope the rest of the world takes note of what we're doing,

because they could learn something from what we're doing. >> larry, thank you for answering that question, we will see you next time. >> thanks, appreciate it >> larry cut lokudlow, nationadh national economic council. >> tonight i got s&p global, which is really, really important. i've got a private company house, and i don't know, maybe in honor of elon musk. maybe he ftries to figure out who's bewh what's best? maybe you can go there, the best a man can get? i'm jim cramhappy kracramer. more on teslshesa ar coming

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sarah isen is with us first up take a look at the markets, dow is trying to come back with a dip at the open. s&p is down about 3, plenty to watch about trade, just watching kudlow about the jobs number, and of course tesla. sarah? >> yes, our road map for the hour, we're going to start with the ceo of mondelez, dirk van deput is going to talk about trade, currencies and a whole lot more weed, whisky and samurai swords elon musk meets joe rogan on the wild ride of musk. plus the wait is over, at least it appears to be, the largest jobs increase in the

economic recovery. the economy adding more jobs than expected. we're going to break down that jobs report and what it means for the market straight ahead. steve liesman has been sorting through all the numbers. good morning, steve. >> hey, carl, i've been doing this a long time, maybe as long as you a lot of times you get the president'sed advisor come on ad i have to redirect a little bit. this is a special case, because pretty much all the analysts on wall street agreed with kudlow's assessment of the jobs report. there aren't too many holes in this i'll show you one or two let's look at the numbers that everybody's talking about. that larry was, according to wall street economists correctly crowing about in the last half hour there's 201 on the payrolls, we keep adding 80,000 or 90,000 to

the workforce, so we keep putting more people back to work unemployment rate, 3.9%, labor force down a bit look at the three-month average. it's been coming down a bit, but it's still in the really strong numbers. nobody's concerned about that, being above 150, 135, those are very strong numbers. and where the jobs are, big addition for education, health services, construction which has been doing quite well. manufacturing doing quite well moving on wholesale trade, transportation, warehousing, that's where the gain is and looking at the change year

on year, it's up 2%. you can see it's been steadily picking up we'll see if this remains, that this tight job market has led employers to be giving on the wage front 2.9%. what it means for the market, it means for the fed. with the outlook, they have inched up a bit. feeling better about december, and there's that june number, that's popped up quite a bit looking for that first hike in june there's actually quite a bit a bid of a trend in may. rosengrad said to me that he's looking for another couple of hikes this year. and he expects it going to the top of 3%. and i think that's going to get a lot of support on the committee if we keep doing wage numbers like this.

carl >> steve, the labor force shrinkage here, is that a puzzle easily explained >> i don't take much stock in one month's numbers, that stock came way down, it was negative it was month to month. if you look at this data, you can't and shouldn't trade on it. overall the labor force has been kind of flat to slightly up a little bit we have these big swings, up 500, down 500. not going to make a big deal if over time, we start to see the labor force, overall, there's a big secular decline that comes in the form of baby boomers retiring it's probably a sign of the strength of the job market here that it hasn't been coming down more, that the strong job market has kept some people in the labor force who would otherwise be leaving. >> steve, thank you. >> steve liesman, reporting on the jobs report for us also in boston >> tesla shares this morning, sinking on news of two executive

departures chief accounting officer david morton, with just a month on the job, the people officer, also known as human resources, not expected to return from leave, this according to bloomberg, this was as elon musk was on camera smoking a joimpbt ant and drinking whisky on joe rogan's podcast. >> so is that a joint? or is it a cigar >> no. >> okay. >> it's marijuana inside of tobacco. have you ever had that >> i think i tried one once. >> come on, man. you probably can't, because of the stockholders, right? i mean, it's legal, right? >> how does that work? do people get upset at you if you do certain things? >> it's tobacco and marijuana in there, that's all it is.

>> "new york times" writer, pulitzer rise winner, jim stewart is with us seems like we're always coming back to this story, it's a fascinating one. whether or not the guy's smoking a joint or tobacco >> we don't know, but it looks like one, we don't know. >> what about the behavior itself, jim, i guess is the larger question and the decision making. >> i have been saying for some time that you can't look at this as strictly a continue governance story, it really does go to his state of mind, i guess, and by his own admission, he's grappled with some issues involving sleep loss, he's described himself as possibly being somewhere on the spectrum. and i'm not a psychologist, but i think you do have to look at some of these issues here, and how that fits into running a big, several big companies like this i think this interview shows that the "times" interview was not a one off situation.

he displayed virtually all the same qualities here, which he did there, which included number one, impulsiveness, the decision to do something like this. all of them i can virtually guarantee that no public relations advisor encouraged him to do something like this. >> secondly, this somewhat grandiose vision of what he's up to, both talking about another visionary, you know, air travel kind of thing, but also talking about, you know, the need to get off fossil fuels, that's his big missions, but then high level of emotionality, did he cry in the "times" interview, or didn't he? he's clearly very emotional about it all on public display. this is not the behavior of a conventional ceo by any stretch of the imagination and you can see why, the stock

has plunged. >> he's an unconventional ceo. and that is why so many people are attracted to him >> i guess the line is where does unconventional cross a line to erratic and/or not the best interests of shareholders? >> obviously that's a key question, one of the questions is, has this behavior been intensifying in recent years, i don't recall elon musk publicly behaving like this two years ago. something seems to be changing, the pressure seems to be ratcheting up, his sleeplessness is ratcheting up, he needs a vacation, and i don't mean a couple of days of burning man, that is not the answer and he needs someone to help him. but people are leaving he has said i would happily hand this over to someone else, but nobody else passes muster. this is evidence of someone who has to have control and can't

delegate he feels like the short sellers are trying to undermine him. his behavior is completely playing into the hands of the short sellers. the stock is down after the "times" interview, the stock is down today whether you and i think this is unconventional, clearly investors are concerned about this >> it's still early, i guess, but we haven't heard more about this from the board? or about this overall dynamic we have seen over the last month or two? >> can you imagine being on this board? >> i mean, i don't know what you do i mean, they have been trying to clamp down on the board and keep them from talking. i do know enough to know that they have tried, they have tried to stop him from tweeting, they have tried to stop him from doing things like this particular entertainment stunt it doesn't seem to have any effect at all.

but, you know, board members have an obligation to the shareholders he's a major shareholder as well they can't just quit, i mean that could damage the company. i think they do have an obligation to stand there and do what they can. it does look at the moment that there's not a whole lot they're able to do >> yes, listen, you know, we can look at the stock prices in the reflection of people's confidence, but they're at the highest level we have seen, well, the ten-year, certainly the 225 bond is about 80 cents on the dollar. at what point does this become a financial story again in part because of moves like that >> i think it is a financial story, if you look at the stock chart in recent months, pegged to a lot of this behavior on his part, it tells a pretty clear story. and i think one reason people are so rifted about the whole

story, is that this vision of his is so appealing. people love the cars, people love the idea of a greener planet there are plenty of people, including me cheering him on i would love to see him succeed in all of this, and it's tragic to see that the biggest obstacle at the moment seems to be his own whims and personality that he needs to somehow get a grip on. >> shares didn't really crater today until the news dropped that the chief accounting officer was dropped and the h.r. person will not return from a leave of absence so the executive rotation is sort of what got -- >> i don't think they're unrelated. why are people leaving why are people having difficulty working in this environment? well, you have to look very far? you know-- >> you have pointed out that the chief accounting officer pointed out the day before, the private tweet the day before >> as far as i know, completely

blind sided by it. i don't think elon musk is an easy person to work for. and that is not unrelated to the same personality characteristics that he's displaying in his interviews with the media now. >> jim, it's a fascinating story, at the very least, and one we will continue to follow >> and again, looking at the board, you don't want to curb his unconventional visionary impulses, at the same time, you don't want to see him self-destruct, how you thread that needle, it's going to be fascinating to watch >> s&p has gone green, let's go back to sarah in boston with what's going on this morning, hey, sarah >> when we come back, we'll give you the exclusive interview with the ceo of america's biggest snacking company, tough times for the food business, how he's changing the playbook, talking

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dow session low is down 107, it's obviously cut that by 2/3 or so, but it's still up for the week, 7,945, when we come back, tesla continues to announce the

departure of the ceo at the top. what it might mean for the shares ahead in a moment, "squawk on the street" is back after a break. and it's also a story about people. people who rely on us every day to deliver their dreams they're handing us more than mail they're handing us their business and while we make more e-commerce deliveries to homes than anyone else in the country, we never forget... that your business is our business the united states postal service. priority: you ♪

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will be to "squawk on the street," i'm sarah isen. the snacking giant behind brands like oreos, and nabisco. i turned to dishing van deput. >> our strategy for the company has changed from the past, the company as you know has been increasing its margins for the last five years, and we think now going forward, we have the right base to start goei ingrowm there and we are now announcing a plan that increases our sales

and our growth around the world. >> the growth is 2% to 3%, that's the target for next year. a lot of the focus was on the power brands, oreos, ritz crackers >> that's one of the changes, we do have these big power brands, as you said, oreos, cadbury, but as we grow those acquisitions, we have acquired a lot of local brands that are quite unique to the culture. and i think they're being -- we were not able to invest in those local brands, so that's a big change that we're doing. the other change that's taking place in our space, is there's a shift in channels, so we have been very focused on supermarkets and grocery but there's other channels that are growing fast and so we're going to make a major shift. >> e commerce? >> e commerce is one of them, but also discount stores, the

green channel, so we'll see more growth as we go into those, emerging markets, of course, still very important we still have big opportunities, we're not always the leaders in our different categories we see that as a big opportunity. the other one that we are going to focus on, is our brands can play in other categories we have a biscuit and chocolate and candy category oreos is in ice cream, oreos is in yogurt. you can get an oreo browny >> campbell's soup is -- the problems at campbell's, do you see that as an industry phenomenon or forecast specific. >> it's obviously different for me to comment on a company i do think that the cpg world is changing in a big way. and it's changing because the consumer is changing and you need to adapt to that. and there's different ways to adapt to that. the way that we have chosen, is

that we are a snacking company, 85% of our business is snacking. we're going to become a 100% snacking company >> they're going to become more of a snacking company, is that something you're looking at? it looks like it's sort of for sale >> that's difficult to say, we think we have the right strategy at the moment. we have these acquisitions that we're talking about. we don't want to end up in categories that we don't want to be in. so i would say at this moment we're going to stick to our strategy. >> do you see this trend of more activists targeting these companies? and i can tell you, after speaking to him, a big fan of yours. >> thank you and i find the relationship that i have had with nelson and peter may who's now on our board from his company, the point of view they bring to the table are very

reasonable points of view and it challenges me and i think that's the right thing and i don't really mind, to be honest. i think the margin agenda and every consumer goods company has gone through the margin agenda in our case it was justified but you can't keep on running a company like that. at the surface, you need to grow, because otherwise it becomes more difficult to grow your bottom line and i think nelson agrees to where we are at the moment >> you have spent time at so many of these companies, coca-cola for instance what happens to the big american brands are they going to shrink are they going to disappear? how do you think about the future of some of these companies and some of these storied brands >> i think it's still a place for these power brands, these big american brands, but still they probably be shrink, but the

big question is how do we keep growing, but a small company with a smallish more local brand. and that's the big challenge we're all facing >> what about the american consumer, what do you see right now in terms of willingness to spend, we just came off of a great quarter, consumer spending growth, is that going to continue >> i think it is, i think there's a very positive sentiment at the moment. we clearly see it in our categories we have chosen under developed or not so well performing categories up. so yeah, i think there's going to be another good quarter ahead of us, i think a lot of positive sentiment, a lot of confidence and we feel it in ourselves. >> some optimism there, on the strength of the mvrn consumer, obvio -- american consumer, and we talk about in europe, a company that gets 80% of its sales over

seas i also wanted to point out the pressure on the mondelez focus here they're going to focus on margins more than shift. n but he says we're going to grow faster and just laid out, guys, a few areas that he's focused on it's really about founding local snacks and i can tell you there's a great selection here of barnies biscuits from russia, and things like that where they're really going to focus on locally. if you're wondering who mr. van de put ledmccain foods, which is a private canadian frozen foods company. they specialize in french freeze and is now coming into mondelez

with a whole different focus which he's laying out right now. >> i remember when he was appointed, a lot of people taking a look at that buy -- bio of his >> as we sort of foreshadowed. joe's going to go after all 12 board members. the math's tough here. i think i have made this point, when you look at in terms of the family ownership and assume that the three big owners, durants, archibald van buren, is against any of his nominees. he's going to have to win at least 75% of those votes cast outside of their ownership to win. but he's coming, sarah, and it didn't seem to be focused on the idea that he doesn't want to sell the company and based on the conversations i

have had with campbells and the work he's done, it really seems to be much more his focus on, this is not the right time to execute on what has been a very challenging environment and his directors, if elected will put the company on stronger footing and put in a much stronger ceo what's your take >> my take is the biggest take away from your reporting this morning is that you said that the talks don't seem to be going forward between kraft, heins and campbell's soup. the question is this an acquisition target they're selling off some of their less focused portfolio items. would that be a ripe acquisition target and you heard about any interview with mondelez, his new business is going to be snacks, they own kettle chips and cape cod chips and that fit into a snacking port folio.

but van de put talked about more categories, but the soup business is really weak right now. the question is who would buy campbell's soup and i think you'll continue to have these companies figure out how to rebrand themselves and that's what mondelez is trying to question today i don't want to leave here, because there's so many great snacks at mondelez here, can you see? ready? hold on. it says i love you so there you go. >> that's a real candy in there, right?

>> milk chocolate. >> are you still coming back >> david, you and me all day long we're going to talk about food deal deals. >> we'll talk more about campbell and it remains if there's any real talks with campbell at all. but you need to put that aside when you talk about campbell and it's future. sarah, i look forward to your return, come back, quickly, r. >> we can eat the tobleron, thanks for those nice wishes sue has a new update back at hq. >> good morning, everyone, here's what's happening at this hour, defense secretary james mattis making a surprise visit to kabul just days after a suicide bomber killed 20 people in the city and wounded 90 others, general joseph dun fofod

meeting with afghan's governor and the presidents of iran, russia and turkey hold a syrian summit i rainian president rouhani called on the u.s. to end its intervention in syria. russia says it had nothing to do with the poisoning of a former russian spy and his daughter earlier this year. and in california, firefighters continue to fight the huge delta fire in northern california late into the night the wildfire has already burned more than 22,000 acres it is 0% contained and at one point, the flames reached nearly 300 feet in the air. and it is hot and dry out there. guys i will send it downtown to

you. >> the time for our etf spotlight, leslie picker joins us from h.q. to talk about aerospace and defense today. >> today we're focusing on the shares of aero state and defense. it's up about 1.2% for the week, that would give it it's fourth straight positive week, and it's ninth in the past ten weeks, it's up about 25% over the last year, among the leaders in that space this week include smith and wesson, american outdoor brands, taster maker, axon enterprise and two more traditional defense names, lockheed-martin and boeing back over to you when we come back, shares of tesla continue to fight a little bit here, coming off the lows after a top executive relininre, and elon musk appears to take a hit off some marijuana during a

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in many cultures, young men would stay with their families until their 40's. so david, with a timeline plays out the stock has gotten progressively worse throughout the morning. it hadn't really happened until we saw the chief accounting officer dave morton stepping down, and then the h.r. chief was not returning from her leave of absence, on the heels of that podcast, we were down about 1.5 in the premarket session when we got the news of dave morton stepping down, the stock

went down and then it went down more when the h.r. chief isn't going to return. we got a lot of insight into elon musk and his thinking and personality. and the idea that he would for the joe rogan podcast light up a marijuana cigarette or a joint take a look at how they developed this whole process, here's what they talked about when they decided to light up that marijuana cigarette >> the spacex as no walk in the park, but a car company is very difficult to keep a car company alive. it's very difficult. you know, there's only two car companies in the history of american car companies that haven't gone bankrupt and that's ford and tesla >> that was what he was talking

about ford and tesla in the environment right now. he went on to say he thinks it's difficult for anyone to start up a car company in this environment. it did go from sipping whisky to smoking weed, to even at one point pulling out a samurai sword to talk about this whole process. it was perhaps more of a wide ranging interview than we thought, but it didn't really move the stocks until we saw these executives resigning >> some of the actual things he talked about regarding technology, innovation, aerospace, fossil fuels and our reliance on it got completely buried by that one shot. >> he had many interest things to talk about with regards to his views on artificial intelligence, which we know a lot about.

he spoke on clean emissions, he spoke about it being hard to put co2 emissions back in the ground he talked about self-driving cars and aircraft. that is a simulated reality, where you don't even have to think the life that we live in it lost made reference to the fact that's t tesla vehicles ine future are going to have features that we don't really even know about yet. so many of those items were not talked about i also found it interesting as i was going through and listening to the post-cast, gdcast, guys. i didn't know that he owns a porsche 911, and he talked a lot

about the handling of his porsche 911. there's a lot of things to discuss here but more people are going to call into question the whisky and the marijuana and the samurai sword. it's a question whether this -- it's appropriate to be seen drinking and smoking recreational narcotics products and that's something that's going to be talked about for quite some time. >> 2 1/2 hours, of course all of us wish we could sit down with him for 20 minutes to do an interview. >> absolutely. >> and i think, dom, just for the parlance of marijuana, it's just a blunt, is what that was it's a cigar wrapping marijuana, i think. >> i'm told a certain city in pennsylvania also has some of those types of cigarettes, yes, or cigars. >> dom thank you >> although unless we spokmokedt

we really don't know what was in it >> from my youth, i remember the jobs market shows -- this is what kudlow told us about the results in the last hour >> wages are very good, we got 2.9% year on year, plus 0.4%, i also liked 200 nonfarm payrolls because of all the skewed adjustments. some thought that number was going to be 50,000 lower but it wasn't and it also shows the strength of the economy. >> david kelly, as jp morgan funds chief economist. guys, good morning to you both i was just looking at black rock's reaction to this number diane, they're calling it the greatest number of all time, not because of the singular number in their words, but rather that it serves as something of a

capstone, after an ishistoric moment, perhaps the most historic number in jobs reporting. >> this was a solid number, the composition of the number was also good, with professional hires up, and professional hires dominated by full-time highers this is better than the expansion we saw in the 1990s. that's a return to people offering benefits to new hires and new grads as well. and it helped to bouie some of those jobs numbers we're also health care, strong gains in transportation warehousing, the one thing i would point out, the little bit of bad news was the weak spot in manufacturing, and that's where we're hearing that their back orders are good, they're feeling good about their business, there is a bit of a hesitancy out there to go forward with investment plans due to uncertainties with trade

tensions and escalating trade tensions with china. >> trade down i think 3k, does that continue? i think it depends on how some of these talks pan out. >> the bigger problem around the world is the uncertainty caused by tariffs there is the uncertainty on tariffs caused by global manufacturing. particularly on the household serving, the labor force, so now household labor is up year over year, but it's still drifting down, and it really looks like we're running out of workers and we're almost to the point that a lack of workers is going to slow the economy on its own if you can't find workers, you can't build a house, and that is one of the drag factors on this economy. we have got good momentum right

now, we see it in gdp in the third quarter, but i'm not that excited about that number this morning overall on jobs. >> diane, do you share david's fears in terms of worker availability >> i am concerned because people can't hire up. but i will note the biggest decline in labor force participation was a little bit of a glitch on the seasonals, because the biggest decline came in teens, so we always have a hard time timing they're going back to school 16 to 19-year-olds was the biggest troughobig biggest drop off we're going to have to remain more retirees, we don't have age immigration, we could see as soon as 2020 a contraction in the labor force, and those are the things that david is pointing to, i'm looking at 3% growth in the third quarter, which is still good, but it is a

slowing from the 3.2% that we saw in the second quarter. i think the most important issue is the tax of uncertainty. and some of what we're seeing in terms of tariffs is lost what i'm hearing in the major stock sector, is that their fears on tariffs at some point in time that stockpiling has to end. >> 2.7 now, did today's number do anything to -- >> i still think the fed is going to do two more times this year and two more times next year if i'm jay powell, so long as the labor market is tightening, and we're adding 2 h00,000 jobs and if the economy does so, we're going to be very close to

inversion by next spring, a very flat yield curve by next spring. >> here it is, a fairly strong number, strongest we have seen since 2008, i believe, is it sustainable, and why is it not an area for us to be focused on. david and diane, you can wrap it up. >> it's just a sign of our diminished expectation, we have the tightest labor market in 50 years, and we have no real gain in wages, despite the tightest labor market in 50 years and 10-year expansion, i think this is a weakness in terms of labor rather than any real strength. >> what we have seen is a major shift in the ability of workers to negotiate wage increases relative to the past, lots of reason, jackson hole spent a lot of time on that.

there's a lot of reasons for it. but it's going to continue to move in that direction, that's part of the reason we're not excited when we see this, it's great, we love to see these numbers, but there's still a shell of it as well. talking to some feds recently, they've been going on about the dual economy out there, focusing on how the growth is good in some areas and other areas still very much lagging. >> thanks guys, fascinating numbers there. when we come back, we'll take a look at molson coors, a s&p continues to ride the flat line, s&p gainers include brdc, s d troaomcbanula. "squawk on the street" is back in a moment.

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facebook tracking for its worst quarter in six years, how should you handle the stock decline. facebook tracking for the first quarter in six years find out on tradingnation.cnbc.com i'm ken jacobus, i'm the owner of good start packaging. we distribute environmentally-friendly packaging for restaurants. and we've grown substantially. so i switched to the spark cash card from capital one. i earn unlimited 2% cash back on everything i buy. and last year, i earned $36,000 in cash back. that's right, $36,000.

which i used to offer health insurance to my employees. my unlimited 2% cash back is more than just a perk, it's our healthcare. can i say it? what's in your wallet? let's get to the cme group in chicago and the santelli exchange >> good morning, carl. if we went into proper forensics, we have to let the market simmer. there is a way to get a jump start on how the market looks towards the end of the session, how it closes in front of the weekend and opens monday residu residual effects are the biggest fundamental number always go into the following week.

but i have to harken back in time, february 2nd, i looked at cnbc.com's wonderful writeup that day 200,000 jobs 2.9 year over year average hourly earnings. boy, they jumped haven't seen this level since the crisis may of '09 the problem is that it was ultimately revised away. if we look at today, we look at 2.9, the chart, you can see the prompter in the early part of 2009 that was referenced in february for the january employment report, we finally overtake that ground again, along with monthly data, that was year over year, up four-tenths, that's as of september 17th let's go to the board. you look at the ten year note yields, starting september last year here was the employment report i

reference. market had been going up, and started to get turbo charges as a matter of fact, it continued to move up until the revision occurred. then it started to dip down a bit. as a matter of fact, it was testing some of the worst levels right about here the world changed. now look at your television set. here's a chart of the bellwether of what was going on at the time, an italian ten you see that spot i drew with the red line on the chart? that indeed changed the focus and the fact that everybody was worried about inflation and break even space on the january employment report, came out february, revised a month later. the market was ready to give it up, and whether it was italian elections, issues with mario draghi, you see what happened with tens, it was a barometer for hot trade in the month of may. let's go back to the board now may and europe have a different

dynamic. we make a high yield, we continue to stay here. that's the question. theintensity here starts to show up here again probably aiming to test 3% we said many times, the 311 top, this market tends, always double tops, never single tops. david, back to you >> okay. thank you, rick santelli. time to send it to jon fortt on what's coming up on "squawk alley. >> david, what's the investing strategy for tech the last four months of the year we talk to former cisco strategy exec, a board member atrophy -- at fiat chrysler coming up on "squawk alley." the lexus ls 500 and ls 500h.

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