>> okay. good productive >> zumiez puts >> when disney breaks 118 look out. >> good stuff. great willowsford. "the exchange" with dely begins now. thank you. hi, everybody. here's what's ahead this hour. a big miss on jobs last month but a huge gain in wages we'll talk about which trends matters more to investors. helping the little guy the sec chief wants smaller investors to have better and faster access to stock data. what's his plan to make that happen he'll join us live costco's strong beat la croix is low. and going beyond beer. that's all ahead in rapid fire >> global slow down front and center data from china with a drop 21% drop in exports for china in the

month of february. even if you take into account seasonality and concerns around distortions of the lunar new year the data is bad strong reaction in the u.s. markets. we were down 220 points at the lows, currently down 186 take a look at the market performance overseas sort of an ugly picture especially if you look at china which has been on a big run this year the shanghai composite closing down 4.4% today although still up about 20% this year got to put that move into perspective. europe also going down by 1% outside of energy, technology one of the worst performing sectors in today's trade the fang stocks all down around 1% to 3% u.s. stocks on track for the worst week of the year kelly, back to you welcome to "the exchange". i'm kelly evans. that terrible data started us

off on the wrong foot. despite the headline miss on jobs wages were up 3.4% on the year last month. that's the strongest yet this cycle. housing starts rebounded 19% in january. how are markets responding let's get to rick santelli out at the cme >> reporter: indeed you described today's action the shock value of only 20,000 jobs seems to have worn off. you zeroed in on what one of the strong aspects traders are paying attention to. it's not only the strongest year-over-year average hourly earnings of the cycle it's a perfect ten because it's been ten years, april '09 since we've seen a better year-over-year pace than the current 3.4. as a matter of fact the .4 was great. year-to-date, 2.55 is what we're nervous about. 2.60 was the intraday low. most important issue dollar index is down a third of a cent.

chart hovering at a zip code of summer of 2017 >> quick follow up question. i saw after the jobs report came out the ten year was sinking to just about 2.6%. maybe a bit higher why this shrugging off of the wage number? >> it isn't really shrugging off. consider this? we settled at 2.75 last week at 2.62 we didn't break under 2.60 but down a baker's dozen. that's a big week. part is a little nervousness over jobs even with the benefits embedded deep in the number. the biggest debt to the sovereign market is mario draghi remember they are only about five, six basis points from going negative again in their ten year sector. >> that's a great point. thanks so much the market is grappling with these headlines. much weaker than expected jobs report only 20,000 jobs added but wage

numbers were strong. one employment rate got better too. what's the story let me ask you first if we can ignore -- i won't even assume that what do you think is more important the 20,000 disappointment on the payroll side, or the strong wages, strong employment numbers? >> when that number came out it was pretty shocking. i thought they forgot a zero i would ignore 20,000. they have three months we have an upward revision for december and january underlying trend is good nothing corroborates a slow down in 2019. good employment data i think everything else is saying labor market is still pretty good. this looks like a weather effect to some extent on february i would put that aside for right now. >> do you agree, mike?

i get why there would be a knee jerk reaction to sell stocks on the news and for the ten year yield to fall. even if it's one month aberration to have a wage growth 3.4% seemed unheard of a year ago. will this thing keep going higher >> the average weekly earnings was up but not as much 3.1. there was a shorter work week. northeastward, the math of it is good andate good trend but i also think that there's a benefit of not having the market somehow think that this is going to be fed a fed catalyst in other words worry about inflation. it was a fine number i agree with the revisions seems more of a one off. the market was in this defensive crouch a little bit. been march night in this global slow down talk for a while that's why the bond market did not have a bigger drop in yield. >> what he mentioned about mario draghi, super important. terrible situation over there. they are trying to turn bank

loans, stimulate things. i don't know if the prognosis looks good does that come back to the u.s. or can we keep seeing the labor market growth as we've seen? >> i think when you look at what the fed did it's looking better and better every day in terms of being patient. these cross currents whether it's europe or china, they are worried about the blow back on the u.s. economy that's why the fed paused and looking like a good decision in retrospect the labor market can continue to grow we have more job openings now than number of unemployed people labor demand is out there. people still want to hire. we will continue to see that going forward. >> the market, i think, has been struggling of this idea how much more it can feed off of the fed being patient. that's why i think you go up 19% in ten weeks, we're down 2.5% in the s&p. in a week off of that high doesn't seem as if it's a panic

but still a wait and see question for these markets at these valuation levels we want confirmation that the u.s. economy will be resilient and drive maybe a bottoming in earnings estimate. >> last thing hopefully i can spit out are we going to get to the point this year where the unemployment rate is lower than the average hourly earnings. they are very close right now. >> it's very possible. the unemployment rate ticked down decent chance we can get down to 3.5 by the end of the year wage growth has been jumping the last six months in particular. so, yeah it can go pop your easterly point it doesn't mean, jay powell has been harping on this, doesn't mean inflation is around the corner >> david farber seven-day forecast down and talked about softbank and robots. >> do you think we'll ever merge

with machines? the singularity, we'll kind of, our consciousness will merge with a robot in a sense, ai will be part of our brain >> definitely, i think so. >> you do? >> i think so. so even today, you know, we don't have to memorize so many things because you can google it so it is like a part of extension of your brain so that we don't have to do some primitive stuff. we can use our brain for more thinking more thinking, creative things even the part of the brain is no more memorizing what number of the year, what has happened. it's the same thing. extension of brain become seamless between virtual reality

and the reality. it's extension of life >> is that something you would want to do >> yeah. >> be happy to merge with a sort of -- >> sort of >> nonhuman entity >> yes i would be happy to have companion in the family, we can talk to them, have fun together. >> david faber joins me now from the new york stock exchange. david, there's a lot to choose from in his comments always insightful to hear from him. i'm so impressed he raised the vision fund and still given what happened to some of the others if he's springing too much money around in an inefficient way >> it's a frequent concern to some extent particularly given his track record by, which, by way, has been amazing over the last 19 years. but as you know he invested all over the place during the

dot-com boom and at one point was the wealthiest man in the world and saw softbank's valuation skyrocket during that time and then it came down so people wonder are youinflat ing values of companies like uber nobody has ever seen anything like the vision fund that said it gave you a little scene of his vision. he's not thinking about quarterly earnings or next year or the year after. he's thinking about the long term for this portfolio of companies that he's invested in. >> i find that impressive a lot of us think about long term and be right or wrong but still make better or good investments. what mark teixeira was saying last hour there's more to be said to make a good investment at a better price than necessarily calling a trend of the future

>> that's true he believes he's getting in at an opportunity for these growth companies where they will have hyper growth for years to come you're right if there's a significant slow down or if growth is no longer valued the way it is in the marketplace it will be interesting to see what happens to the vision fund returns that said he seems -- he's a believer he even said that to me. we played a bite from that earlier from the interview i asked him why do you take all this risk, again what you saw 19 years ago when you had it all and almost lost it all he said because i'm a believer i'm a believer in technology and what it will bring he wants to be a part of it in as many ways he can across the board in be in the advance of artificial intelligence. >> david, thank you so much. here's what else is coming up today on "the exchange". >> announcer: ahead the sec

wants smaller investors to have better, faster stock data to reduce the advantage of big firms. we'll talk to the head of the sec jay clayton about his plans next plus the man behind the latest push to tax financial transactions does his bill have legs? what are his plans for spending the revenue? and don't blame negligence intelligennegligenceo or mismanagement. so what okto down lacroix's earnings this is "the exchange" on cnbc the design thinking, the digital engineering, security, blockchain, and we will be first to market! yes. when we do we launch? unfortunately, in 2 or 3, hours.

why the delay? cognizant is helping banks use digital technologies at scale to advance speed to market.

. welcome back to "the exchange". here are some was movers oil is moving lower down 2%. after that weak economic data here and abroad. crude is on pace for a second week of losses, down 2%. the energy sector is moving with it noble energy, eog is down. shares of big lots of jumping. revenue and comp store sales big lots jumping double digits securities and exchange commission laid out a plan to help smaller investors to get access to better stock data faster in order to reduce the advantage bigger firms have. jay clayton joins me along with

bob pisani who knows all about market structure bob, kick it off here. >> jay is here giving a lecture at fordham university on market structure jay, i want to start with you. buy backs. a lot of discussions about buy backs. some proposals in congress that perhaps limit tax benefits from buy backs. has the sec looked at this at all? how do you view the roll of buy backs in the market and are they a help to the marketplace >> let's separate those two into what buy backs are used for and then the regulation of market activity around buy backs. buy backs are a capital allocation tool. a tool that board of directors, managers use to allocate capital. if capital should be returned to shareholders oftentimes a buy back is the most efficient way to do that once they choose to do a buy back it's our job that buy back

and other market activities are done fairly and we have rules around how people can conduct buy backs to ensure there's not manipulation >> there's nothing wrong per se. there's an implication it hurts the economy, benefits rich people there's a reason for buy backs and does the sec understand that >> buy backs is a capital mechanism. if you have too much cash and no good use one thing is to return to it shareholders banks regulate whether a bank can buy back stock or not. but inherently a buy back is a capital allocation tool. >> a similar question. except this time it's on proposals to tax stock trading in congress we've seen proposals in the last few weeks to bring back a tax on stock trading. 0.1% we tried this in other parts of the world. what is the sec's position on this is there one would it help investors?

would it be bad for the markets? >> we still need to look at what are the details of this proposal and learn more about it but in the meantime i think the concerns would be whether or not a tax like that would find its way back to investors to the extent it was creating frictions in the market for market makers and finding its way back to investors and taking away from the returns of investors >> we'll have on more. mr. chairman, i want to ask you about the proliferation we've seen of stock exchanges. there are plans to launch a miami exchange, plans to launch members exchange we know about the long term stock exchange all of these exchanges can be viable because brokers have to pay to link up to them my question is having 16 stock exchanges if we get to that point good for u.s. financial markets or does it actually undermine their efficacy

>> the question about the number of exchanges and the optimal number of exchanges is something that we think about, and it's unlikely that one size fits all. for very liquid stocks, multiple exchanges, we think that is inur to the benefit of long term investors. whether thinly traded stocks, we would have more optimal trading for long term investors, i concentrate trading in one venue. that's a question we're asking one of the things we've talked about at fordham today and we're looking for public comment around this issue. >> it does sound like by forcing people -- you know the sec regulation is look brokers and this makes sense they have to executive at the best price. that means they've to be linked up to all of these exchanges would you exempt it for people who are trying to serve the individual investor?

is there a way to siphon out activity -- so it is not raising the cost of doing trading for everybody because there's so many different players involved. >> kelly, you're asking exactly the right question the multiple players wehave today, i would say the majority of participants that look at this feel comfortable that at the highly liquid end of the spectrum that's working well for investors. you know, we have real questions whether down at the ill liquid end of the spectrum multiple venue, multiple exchanges are working well for investors >> we've seen market down on concerns about global growth you spoke in the fast the effect of brexit on u.s. corporations can you explain to us what your concerns are and secondly on a different topic, bitcoin etf you have an update on that >> on brexit, look, we've asked our issuers to tell their investors what are you doing to

plan for brexit. brexit is three weeks away in term of the current deadline brexit is already here in the boardroom. people are already making decisions. they are making hiring decisions. capital allocation decisions and doing it against a range of outcomes but it's happening. we're already seeing the effects of brexit in a way companies are behaving and therefore in the marketplace. and the marketplace reflects the company's behavior bitcoin etf i don't have a lot to say about that here, bob. we're going through process for people who make applications to us i said what makes me uncomfortable in the past you got to be able to know the trading, the trading the underlier is something a retail customer can think is reliable i still have concerns in both those areas. >> i want to ask, i know it's a sensitive subject but i want to ask about elon musk. you allege he violated the term of the agreement with a series

of tweets. where is that process? can you educate more about what's happening >> so, look, i won't comment on conduct or any specific enforcement action it's inappropriate where this one stands the judge has asked for mr. musk to show whether he has complied with the settlement or not and that's where it stands. >> anything you can tell us about what will happen, what remedies you might seek? >> that would be inappropriate >> brett let me close with you on the whole issue of a transaction fee pilot. this is quite controversial. a lawsuit here with the nysc and several other exchanges. you want to propose to look at the way rebates are done here in the united states. what's your fundamental concern with the way stock rebates are done with the stock exchanges. >> it's important point to out when he an equity market advisory committee that met for a long time. they considered a lot of issues.

we should look at the access fee cap and test to see what the right levels are this is a rule that's in effect for over 12 years. it hasn't been revisited once. what we find is that most people temple us something needs to be done everybody has a different idea of what should to be done. our view is that the best way to find out is to test it and to see what the results show and make policy designates based on imperr emperical data >> jay clayton thanks very much for joining us and brett as always come back soon and update us on anything going on at the sec kelly, back to you >> ask him about tesla i can ask again but we won't get anywhere >> you heard his answer.

i asked. >> i don't think so. guys, thank you. bob, thank you as well coming up one of the congressmen teaming up about alexandria occasio-cortez and proposing that tax that bob just referenced on tax trades he'll join me. does the ledge allocation have a shot of passing and where will the funds go that's raised from it richard branson has some harsh words for america's employers. that's coming up in rapid fire "the exchange" is back in two. what do you see? we see a billion more people breathing free. we see access to fresh food being the global norm, not the exception. we see homes staying cooler, without the planet getting warmer. at emerson, when issues become inspiration, focusing core strengths to create a better world isn't just a result, it's a responsibility. emerson. consider it solved.

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exchange" much i'm sue herrera. here's what's happening. president trump says he rejected a personal appeal from michael cohen for a pardon he tweeted his claim aboard air force one on his way to alabama. cohen then took to twitter minutes later to deny that accusation saying it was quote more lies from the president president trump accepting the resignation of white house communications director bill shine less than a year after shine joined the white house staff. shine will now serve as a senior adviser to the president's re-election campaign u.s. air force secretary heather wilson has decided to resign to return to academia and california san anita racetrack opened it's interim track while testing continues on the dirt track

this to find out why 21 horses died in the last two months. horses were rejected for jogging on track no timing was allowed. kelly, back to you here's what's ahead, everybody on "the exchange". >> announcer: coming up, big bulk is leading to big profits for costco powell's primetime appearance. corona goes beyond beer. and the ceo said injustice led 's poor sales. it all ahead in rapid firewe ge. dear tech, we're showing girls that stem isn't just a boy's club. we're using blockchain to help reduce poverty. we're developing new solutions . with the help of quantum technology. "rapid fire" let's do it all. together. let's expect more from technology.

let's put smart to work. ♪ ♪

welcome back let's catch you up on a few stories that should be on your radar. it's time for our friday edition. "rapid fire" here with their take is courtney regan -- i wish you could see how everybody got excited. >> it's international women's day and so what am i doing here? >> you're surrounded by women. >> sorry >> we're offering diversity on the panel. >> thank you very much get the old white guy on here. >> you haven't been banned yet

first topic is costo crushing profit expectations. sales were up 20% and raising minimum wage and doing other things how are they continuing to thrive >> in this quarter there was a nice benefit from fuel we have to be careful when we look at profitability. you got the membership fees up more than 7% that's a big amount of money it's funny when you bring up amazon costco, they've admitted they are a little behind online 4%, 5% of their sales is online. fresh foods and household essentials strong for them and that's the same thing. think about the retail strength we saw this quarter with walmart and target what do they sell? essentials >> is there another retailer that enjoys goodwill as much as costco >> i've been trying to get there for six weeks. >> it's like a favorite uncle. you like going there >> think about what costco and

amazon have done you pay to be able to use them >> membership fee. >> you still drop a good couple of hundred dollars when you get there. >> like a car seat i don't feel like reading reviews. i went to costco they had one i bought it. it was there so i can see there's room for improvement on the online side >> you didn't have to buy six of them >> what car seats? >> at costco -- it's a costco joke >> bulk buying >> moving on let's talk about lacro lacroix. national beverage reported a drop in quarterly sales for first time in five years of the fizzy drink. the shares are down 25%. ceo commentary has everybody talking. he apologized for the results. he said negotiate or mismanagement were acts of god most of this was injustice >> there's a lawsuit again them.

>> exactly >> which claims they don't use natural ingredients. >> yes >> lacroix is an example of great packaging and marketing. lacroix, french for the cross. seltzer water with a flavor in it the marketing, these mysterious essences they include in their ingredients. that's all marketing and packaging. years ago i interviewed the founders of haagen daz and said what the haagen daz, is that some scandinavia language word for ice cream? no, it's a made up word. it sounded fancy >> lacroix became popular because it wasn't soda people wanted to have that fizzy sweet drink or mix it with something. is this still a secular growth story or to bill's point everybody is thinking just a trendy mirage.

>> haagen daz most of the acream has five ingredients >> tran parent >> when you talk about essential oils and this lawsuit about what kind of chemical weapons are in here, that's going put a huge damper on the brands and whether consumers will go there and that's the thing sparkling water is a hot, hot area of growth forthese companies and there's more and more competition here. >> in the release he talks about how our customers want that lala -- >> i appreciate the passion. he's calling people professional liars. using social media to falsely attack our brand integrity but think about that competition. you can buy trade engineer joe's sparkling water. if you're buying it for the product. >> give me a can that's white, just says search lltzer water. >> corona is launching its first

nonbeer product. so i read this story and thought there was no alcohol to the contrary. it is malt beverages i have to ask people i know what a malt beverage is thanks to our producer it's more fermented. >> i'm a child of the '90s here. i remember when malt beverage was old english and colt 45, okay i remember when rose was sweet and a little trashy to drink things have changed. that's what you're seeing with these spirits makers they are basically reinventing some of these older alcoholic concoctions to cater to a wider audience that want something other than traditional beer. >> this malt beverage category is growing now they will jump into it i'm not that much of an expert how long trends take to grow and fizzle out

by the time everyone understands what this new offer is are we over it. >> once upon a time the retail industry was a seller's market remember henry ford used to say you can have any color car you want as long as it's black, right? retailer all they had to do was put something on the shelf and for the customer it's take it or leave it now it's very much a buyer's market you must innovate and come up with new and improved to get through the clutter. this is a classic example. >> by the time you create this beverage we're over it >> on to the next fizzy thing. virgin group founder richard branson think american vacation policies are a disgrace. the u.s. lags behind several countries because it doesn't require any paid leave or paid public holidays. meanwhile you have uk, france and mexico who hand date between a week and a month's worth of

total paid leave the gap is bad he said employers should offer free vacations it's up to employers already the system works reasonably well >> which is the most productive country on earth i forget the trend in technology, my son works in technology, as you know he gets unlimited vacation time. which sounds fantastic on paper, but try taking unlimited vacation time. he takes less vacation time than i do and i don't want to hear any notes about that but i agree that we hear about number of people that have so many vacation days at the end of the year that they don't end up taking take the vacation time for pete's sake. >> i don't like to do it it's just something you grew up with you know the struggle. you feel so luxurious. with another generation or two my family will have gotten over it >> by then a three day work week >> it's also worth noting sir

richard branson oversees billion dollar hospitality empire. he wants you to be on vacation >> that's the point. >> i never thought of that >> brilliant we'll leave it right there thank you all. tomorrow marks the ten year anniversary of the hanes bottom. we'll recap the best menomts from the time and talk about how much longer the bull market can last

>> this week marks ten years since the market we call it the haines bottom. let's look at what was being said right here on cnbc and the days leading up to it. >> tough dayton wall street. dow jones industrials average closing at 6594 down by 4 percentage points two-thirds of the dow components closing at new loss today >> sucker rally. let's face it. got to move up yesterday after three weeks of moving down

got a little rally talk of some kind of a bottom. next day boom everything falls apart. >> nobody has the solution set up yet we have nothing to focus on. this market is going lower >> the numbers are dismal. continue dismal and promise to continue dismal for the next several months >> i final leadership decided some of these financials have to bottom and act better before we can ever say this is going to be okay >> credit markets over the last few weeks have not been getting better the credit market has been a disaster >> what were you watching down there in the pits. >> we need a liquidity event before we start to see real buyers come in this market >> step out on a limb here >> hold on >> i don't think we're at the bottom >> sure enough we were >> the great mark haines actually nailed it on that day

what was fascinating there apart from the ageless statement faber, is the idea that the dow at that time was at 6,500 and under duress where are we now, 25,000 >> you lose count. >> it was the darkest moment financially of my lifetime both personally because i was losing money boy i almost said i almost wouldn't to say on television but at any rate i was losing money. but it was the closest we came really to a systemic collapse of the financial system of course, we've come back we're looking now at housing which was really the predicate of so much of what was going on there from 2007, '08, '09. i bought at the absolute peak in housing and watched it go down be that as it may. we'll take a look at today's housing which is different a lot of structural reforms built in there's not the kind of concern

over securityizing mortgages that there were then but people are worried about some temperaturemors in housing. >> we remember going through it and don't want to go through it again. >> we'll see you at the top of the hour >> congressional democrats are revival a new proposal for a new tax on financial transactions. tax on financial transactions. that's next. hp elite book with built in security features that will help protect your people and your data. spy, spy, spy! they're actually very nice people. you need it orchestration by cdw and hp featuring the intel 8th generation core processor.

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more than a decade after the financial crisis don't crackdown on what it sees as risky transactions this week representative peter defazio and senator brian chaz of hawaii introduced the wall street tax act it would be 1% on every financial transaction including sale of stocks and bond. it's expected to raise $770 billion in new revenue over the next ten years thank you for joining me what is the primary purpose and intention of this act because it's called the wall street tax act and it sounds to me like that's your goal is not necessarily just the revenue piece of it but is really a bill

that you think would have broad support in taxing wall street. >> well, it's aimed primarily at the flash voice, the high velocity hedge fund traders who trade with algorithms. ever try to buy a ticket to a concert? they are all sold out. that's what these people are doing. they front run the market. they pay a lot of known get information about other customers. they front run the market with super computers and algorithms and if you say that cal will buy a huge block of stock they know it microseconds beforehand they buy it, drive up the price and then sell it so this is something that should be actually illegal. you know, because you're basically working off inside information. you know what trades are coming. the game is fixed. they don't add any value and they jack up prices. >> but this would really hurt --

cal pays more. that involves a ton of trading all the time >> they are already paying because they are being front run. >> this would be a double whammy >> no it wouldn't. >> because it would drive those leeches who are front running the market out of business because they are trading, you know, the way they are trading now they can't afford to pay that tax so basically it would be a net wash for value investors long term investors, pension funds. we would get rid some of the high velocity hedge fund folks and we would have calmer markets. >> one thing -- there's two things about this. on one hand people have complained for the last couple of years there's not good liquidity in markets obviously this would make it worse. on the other hand, one of the other things by the markets moving quickly is that they efficiently priced in new

information. if you take that out of the system, then you could argue the markets will be less efficient i'm not saying the way it happens now is a good thing but is there a way to target that activity call it insider trading. but how can insider trading. how can you not harm liquidity and take away opportunities for more efficient pricing. >> many economists have looked at this and said they do not add liquidity. we would have purchasers and sellers, we'd find each other a microsecond later if it wasn't for the high velocity hedge funds who get in the middle of the transaction. i want to buy a stock. i find there's someone in between me and buying the stock, and it's someone taking a little bit off the top, and so little that you're talking about one basis point, putting a lot of them out of business >> is there a way to target people who do this for a living so you exempt everybody else it's just such a broadway to try to get after a specific part of

the bad actors as you see them $1,000, paying a dollar on that, talking one share of amazon, not even one share of google this is stuff that everyday investors are out there trading all the time. >> right well, 60% of the market on a given day is due to high velocity training. they know nothing about nor do they care about fundamentals all they're doing is front running the market with algbots. if they go away, it's not going to hurt the economy, hurt transparency or liquidity. we'll have calmer markets in the future once they're gone, we could reassess the tax. >> can you target them more specifically >> that's a possibility. i would happy to have the financial services committee look at targeting them much more specifically. >> final question on this, because we're talking about a lot of revenue over ten years. what would that revenue be used for? >> good question

$777 billion, that would be about a third of the deficit created by the republican tax cuts if you wanted to use it for deficit reduction. it could face the nation's infrastructure if you wanted to use it for infrastructure. there's a lot of meritorious programs that are underfunded or not funded that we could use it on that would be a decision tore the majority of congress to decide the do you want to favor deficit reduction, investment in infrastructure, spend it on education or health care there's a lot of needs. >> one more final, final thing before i let you go. why not call this the high-frequency trading tax act why not call this the flash boy's crash down act wall street in a way has nothing to do with what you're describing >> i've had more creative names, introduced this numerous times more fun and creative names in the past so we could -- we can go back and look at some of those. >> congressman, thanks for

joining me, congressman peter defazio of oregon. >> thank you. the february jobs number badly missed estimates wages soared we'll talk about what the real story is on the ground wheitn comes to jobs. we'll get a look at one manufacturing dlikt nextre... you thirst for adrenaline, you hunger for raw power. well, you've come to the right place. the road is yours, dig in. when yowhat do you see?itical issues facing our world, we see breakthrough medicines getting to patients in record time. we see harnessing natural gas unleashing the promise of clean energy. we see engineers simulating the future to improve today.

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the selling, they would instruct brokers to find buyers first welcome back the big news of the day was that the jobs report missed estimates, only 20,000 payrolls last month other parts were much better wages saw a great jump, unemployment rate came down. is the report overall a true indication of what's going on on the ground let's take a closer look with our next guest randy woolken ceo of the manufacturers alliance of central new york welcome. >> thanks for having me, kelly. >> it makes me laugh when people say i'm going upstate and they only mean a mile up the hudson so we know what we're talking about, it's that part of the country. how are things, job openings the report showed a little weakness in manufacturing. how is the labor market looking? >> actually, we can look for many more workers. almost all my members have a 5%

to 10% job opening high-skilled labor is in short supply and grade demand. a great time here in central new york. >> what kinds of industries are having trouble finding workers. >> manufacturing advancement, technology jobs are all open i've got members who have 30, 40 more openings. you can't find technicians you can't find engineers really, it speaks to a job market that's missing a whole group of talent we need. >> when i lived around there a couple decades ago, the economy wasn't exactly booming i'm very curious, is the economy upstate doing well the beige book notes from the fed yesterday suggested that has there been a shortage of the right kinds of workers to fill these jobs >> i think there's a shortage of the right kinds of workers to fill jobs. and i do believe the unemployment rate speaks to that at 3.8%. we essentially have full employment we need people to get back into the workforce if they've been out, or those that are

underemployed, to upscale their job skills so they can go to work in these high-demand, high-paying jobs. >> if you have a company looking for 30 or 40 workers, are they looking to university? are we talking about trying to get young people, older people who have left the labor force? >> it's all of the above actually what we need is young people coming out of high school going into technical jobs. sometimes it's a two-year degree we need current workers to upgrade their skills we run an apprenticeship program at macny so current workers can work their way up the skills chain. i think we're in a time period where we need people to upscale jobs and we'll continue to see strong demand for jobs. >> any slowdown, impact you're seeing from the trade wars, the tariffs we've had? look, i don't know what's going to happen. maybe we're getting 25% tariffs coming from china if we can't figure things out. is that having an impact

>> well, in some industries it is obviously the supply chain is being impacted i don't think we've seen the full impact yet. i'm a strong believer now is the time to have these conversations, especially bilaterally with china we have to solve these problems to continue to be a global player it's challenging in the short term i have seen impacts. i still believe we have to deal with these issues. >> finally, randy, are we talking about six-figure jobs for some of these openings give me a sense. >> yes, we are talking about great paying jobs, especially engineers even technicians, $75,000, $80,000 a year with benefits these can be had with two-year degrees or upscaling with apprenticesh apprenticeships. great jobs. >> randy wolken, president and ceo of the manufacturing alliance of central new york that dwoes it for "the exchange today. we'll see you back here next

week i'll go join in on "power lunch. >> welcome to "power lunch." new at 2:00, a big miss for the jobs report. what does it tell us about the health of the economy? a big jump for housing starts, however. could the spring selling season help fend off whatever economic slump, if there is such a slump, is in the cards. a ceo goes off the rails, blames an earnings miss on, quote, injustice. markets are lower after the jobs report miss. heading for the worst week of the year right now, off the worst levels of the session. "power lunch" starts right now we begin this hour with jobs and your money our reporters have it all covered for you. eamon at the white house, steve leisman takes us inside the numbers. bob passan any tracking the stock market reaction. rick