>> i like the business proposition. i don't do cool very well. >> you don't do cool very well i wasn't going to say that but thank you for being with us. >> thank you it's good having you guys out here >> great to be here. >> great doing it. >> that's it for us here in pebble beach andrew, we'll see you soon >> next week >> see you, andrew >> see you "squawk on the street" is next ♪ >> good friday morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer, david faber at the new york stock exchange. stocks are set to take a breather at the open after four days of robust gains a solid jobs number 225,000, well above estimates, wages strong, participation rate at a seven-year high. contrast that with the manufacturing data in europe, very weak. you see europe across the board. oil is struggling to hold 50 and the ten-year below 1.6 road map begins with the warm

weather jobs boost, january payrolls surging stocks are still poised to retreat at the open. on track for their best week in eight months we'll get reaction from the white house with vice president mike pence later on this morning. shares of uber are spiking ahead of the bell. the company said it will be profitable sooner than we thought. the ceo telling cbs uber plans to put a majority of its revenue growth into the bottom line. and paul singer versus masa san, elliott management taking a $2.5 billion stake in softbank first the better than expected january payroll number includes the addition of 206,000 private sector jobs, unemployment ticks up to 3.6, labor force participation also increases, wage growth up 3.1 year on year people are wondering why yields are not, jim, acting as you might expect we did get benchmark revisions down >> it's incredible i think there should be. i mean, the big job gains are exactly where you would move

interest rates they're in construction. it's what you need big construction loans, you think there would be demand for money. it's just not happening. interest rate. interest rates >> manufacturing down 12 for the second month in a row. >> that could be china and boeing >> obviously and ism numbers we got earlier this week would suggest that will rebound in time >> yes, i think it will. i really love this construction number, though plus the multiplier effect with constructi construction there's still a lot of people who want work that we didn't know and i think that that is the most salient thing i was listening to the guys previously and i say to myself, some of them don't understand, there is no philips curve here i mean these people, they keep coming, this is something you talked b david so many people given up and they're coming back. they keep the pressure on wages. >> people who have given up in terms of the labor force

>> now they're coming back >> right, right. >> i think there's jobs if you want them. if you're discouraged. >> certainly seem to be. >> if you're discouraged you're discouraged about life >> this is why -- >> average goes higher, trending higher than the six-month average and higher than we saw last year. >> right very strong >> that's why kaplan and clarida said at the fed at least they need to be humble about where full employment is >> right >> we're groping in the dark right now. >> groping in the dark is better than saying things are too hot, we just got to do something. by the way, once again, europe nowhere near what we're doing. china of course is opaque. we don't really know what's going on in china. >> we don't. >> we will know february 9 the big split in this country among industrials that i speak to is are they going to come back to work in china or else the gdp is really going to go down >> you know, jim, i think it's funny how the markets seem to what whip-sawed in terms of fear

of corona and no longer being concerned as much. >> right >> i don't get it, because everybody i talk to is very much concerned about the chinese economy. >> i am. >> not to mention the chinese people, and the virus itself are they truly containing it people may point to the fact that the numbers seem to be ebbing, but that also could do with testing capacity. >> yes >> they only have so much capacity to actually test so that makes it hard when it comes to your point about are people going to show up next week >> geez, so important. >> hangzhou, where alibaba is based, shut down >> the government says you're coming to work how about if they say you're coming to work and you're not in the cordoned, so you're free to trade, got to be like yum! china, wear a mask and have a thermometer but you're going to work that's what could happen >> i was with a friend yesterday who showed me, he has all the

chinese social media, a chinese expert, on his phone >> yes >> that's all it is. that is all it is. a country of 1.2, 1.3 billion people, nothing, the news, nothing, the social media nothing but coronavirus. >> right i'm asking my stepson, i read the chinese papers and i say listen, please translate this. i'm not getting an accurate translation. he's a scholar and you have to, because the social media there is kind of like for the first time, they're subversive especially with that poor doctor who died, 33 years old >> young guy the virus is making very healthy people vulnerable. it's not necessarily the way the flu operates, typically taking people who unfortunately are already somewhat sick or older or compromised in some way >> on the cruise, i look at the cdc. a lot of people are heartened it's 12 people, for a full week 12 people. another thousand people died meanwhile of ordinary flu in

this country >> cowan this morning the data if accurate appears to show the current wave may have crested at least in hubei the question remains about subsequent waves >> may i just point out that same gentleman said it crested on tuesday and he was talking about wednesday that it hadn't crested. so i mean, unsteady, erratic we can't get numbers >> regardless, jpmorgan takes their q1 china number from 6 gdp to 1 and cut their deployable gdp in half to 1.3 >> wow, they're extreme. >> if china prints a one number for q1 gdp -- >> there's nothing going on in the country. >> they're building, you see the nice hospitals >> building hospitals but not a lot of economic activity taking place. >> david, it's still a holiday this is make or break. is the party going to say you know what? we don't care. >> yopi don't think so >> really, you think the party

will be a kinder, gentler party i didn't know about? >> there's a lot of, there's a dynamic here in terms of the communications amongst people versus the party, and what you can believe and not, and -- >> there's 50 million people not going. >> test for xi in some ways. >> yes you just said it i can't believe he said it xi, he's on the line >> he's leader for life. >> he ain't no leader for life listen, when you can't feed your people and you can't get them to work, you're not leader for life >> they're watching far beyond our concerns about the virus itself, both the economic impact and the political impact in china. >> what do you think it means for the people who didn't heed president trump's warning to get the hell out of china? >> i don't know. >> president seems a little vindictive these days. you notice >> the president has said xi loves his country and that the best is yet to come between the u.s. and china >> you know, it's -- he's a

great friend of xi >> yes, they spoke last night. >> gave each other a jingle. they're great friends, david when you say they're friends, you say they're great friends. if you say they're great friends, what do we say? they're lifelong friends >> as for the markets, though, we come back to the theory that when the rest of the world looks dodgy in the words of tom lee, global managers want to buy s&p. >> yes, they do. >> and tom's words last night, there's not enough s&p to go around >> okay, that's been my theory i remember when the big baby boomers were going to, when the big wave of baby boomers was going to get to where they needed the money they were going to sell stock. they ain't selling those stock because they had no alternatives, and remember, they're not looking at the short funds right there. it's not the fed they're looking out ten years. so the baby boomers aren't selling. we had one massive deal this year so far called casper, david. i don't know if you've seen it >> i saw it yesterday. you actually -- >> yeah.

>> ooh, that was bad choice. >> there was no bedbugs. >> a lot of people sleptd in th that bed >> are you serious >> was i early >> i hope so >> i used the pillows, david i put my face right in the pillow >> for a man who is worried about germs. >> i am worried about germs. >> casper, yes, i saw them go public yesterday >> that was a big deal no, and i got to tell you the other thing. listen, otom i love tom because he's funny uber, we'll get to these, uber and pinterest got in under the transom and didn't have a desire to make money. when you talked to him money was like a dirty word, curse word like george carlin, the eighth curse word now they're determined to be profitable lee is right we have fewer companies coming public when they do, they're really small and the buy-backs have been relentless. oh, my god, there are a lot of

companies doing buy-backs, you can't believe they had money to by we are such a different society than in 2009 when companies if you had a down-tick like this they'd be bleeding money twitter, a good number i look at what's happening in china versus us and i say we passed them. now the president is so busy being vindictive impeachment, he hasn't had a chance to be vindictive about the critics who said the economy wouldn't grow and he is limiting his vindictiveness of xi, but what i can tell from my sources, they're not letting us help. >> it's hard to be vindictive when mnuchin says they're not going to hit 3 for the year and just had the worst gdp of his presidency you don't want to get too off your skis. >> no, you don't but i think china has the ability to pull a lot of the world down. i really believe >> yes, i think that is a fair statement. >> when you go to grenada, they're building stadiums. you go to italy, they're building roads africa, there's 3 million people trying to make it so they own

africa they are the maial plan for the world. >> jamaica not that far, not queens, the island >> they're in jamaica? >> yes >> are they building gangia plants >> bob marley's birthday yesterday. >> was it really >> he would have been 75 >> "no woman, no cry" oh rejection song, that's about the hedge funds. >> narrower than expected loss, revenue ahead, they see a profitable quarter end of this year, moving the target up by a year dara talked about that earlier with andrew on "squawk." >> this is a business as it grows can become profitable and for 2020, we got together as a team and said we can do the same thing, not just for the rides business but for the whole business if you look at our plan for 2020 for every dollar of revenue growth especially from q4 to q4 we expect to drop 55 cents to the bottom line. we think that's absolutely doable to get to profitability by q4 but at the same time make

the investments we want to make. >> still going to lose $1 billion a year stifel to 44, canaccord 55 >> it was a masterful conference call i truly loved it he talked about the eats look, basically says we'll get that under control they are in markets making a lot of money you know what it sounded like? it sounded like a company where they're going to make money. it sounded like a real company that's what it did, sounded like a real company not just in taxi cab company but a real company >> i haven't heard you encouraged by them in this way in a long time >> this was a great call >> they've still got the california issue >> they brought up that. >> still not on the streets of london >> i brought that up >> losing money in eats. >> david, they could get out of a bad markets in eats, sell them to grubhub and see the stock at

45 dara watches the show, he knows my view. >> i know he does. >> how was that for you, great he watches the show. >> how is that for hubris? >> i just demonstrated it to you. >> congratulations, jim. >> thank you you know what? as good as it was, pinterest was even better. >> pinterest was good, right >> oh, my. >> rpu ahead, the guide was good >> video is working, jane pen we are the irw me at the street, my old buddy, they are conducting something, again they're a company. >> wow >> are they? >> yes, no longer kind of a project. >> okay. >> they're a company but uber and pinterest were projects now they are looking like companies. >> so travis selling at 27 and goldman exiting in the fourth quarter was a mistake. >> sometimes you just get had. >> sold all his stock. >> timing is everything. he's too busy, got another business >> he does but he missed -- >> i loved my first meeting. i don't know whether to cry for

him. i remember my first meeting with him i told you about at the last correspondents dinner. what did he say what did he say? >> he could buy you like like terrance stamp on wall street? >> he said i am so much richer than you how do you do? i'm so much richer than you. i think that was the best opening i've ever seen from a guy, other than my other nemesis, elon musk >> so much younger than you, so much better looking with you, but he went with richer. >> yeah, could have been any one of those >> that's true >> he liked my wife. >> watch out >> i thought he was hitting on my wife >> let's just go to break. let's go to break. still to come an interview with the vice president. we'll hear what he has to say about this morning's jobs number, economic growth and the coronavirus of course. cramer's "mad dash" is coming up we'll get to more including aurora kacannabis, goe,os activision, and more when we come back.

♪ ♪ no woman, no cry my theme song back in the '90s >> he had a concert about a mile from me and i was an idiot, i didn't go. i always regretted that, because he died right after. okay, transition now from bob marley to "the mad dash" last one of the week

>> one you're going to hear a lot about. penn national. david, you know who they got aligned with barstool, portnoy, and since they got involved with him, boom, why? because he has brought the average age of their demographic down dramatically and pretty soon penn nat on the phone, they'll bet on raindrops portnoy is smart i find him personally charming there are other people who don't. but this is going to be the way the next generation, you're going to bet and he is a bookie, actually a good better but he knows, he's going to make it so that when you hear about national gaming, it's going to end up being penn national gaming, because that's the guys, those guys are willing to take the chance >> all right, so a heck of a move >> because they hooked up with

barstool david, when you read barstool, don't you chuckle and laugh? xw >> i don't read barstool, sorry. should i i know they reviewed your restaurant pizza -- >> 8.2 >> did really well >> you know what they gave pizza at the link? >> eagles. >> he gave it a 1.1. he said it was the worst pizza he ever had. >> really? >> which is a benchmark. >> i've had some bad -- even bad pizza is kind of good, but >> no, he gave it a 1.1, which means kind of like clorox wipes. >> we have a lot more to get to this morning, of course we'll talk about softbank and elliott. we'll go over that deal, ebay and ice. >> and then we're going to find you a tie, maybe some better pants and certainly a better pair of shoes. >> and you should look forward to that interview with vice president mike pence on this jobs friday. also don't forget we're a podcast, any time you want to, listen to the opening bell hour, "squawk on the street," we're

right back when you look at the critical issues facing our world, what do you see? 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. 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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friday the number 225 if you missed it, well above 158k and some positive revisions, not dramatic, but good enough, as most of the sectors did add jobs as for softbank, david, what a week, as the head of the u.s. vision fund, the ft reported leaving and now we got elliott >> you had thr that ronin resignati resignation. the elliott news yesterday sent softbank shares up softly and we reported on it it's a $2.5 billion stake. paul singer runs the london office of the giant elliott fund does a lot of things including activism, not solely activism, what we tend to talk most about involving elliott given the news it creates not the first time they ventured off of our stores. battle of samsung, a number of others interesting to note one meeting

as my understanding with mr. massa and singer, that is gordon, in terms of what it was that they're looking for, but the main thing here was simply the lack of performance of softbank shares versus what is at least seen as the asset value, namely in the form of the aby baba stake, which is enormous, and whether or not you can address that and bring the stock price closer to the underlying net asset value next week softbank -- somebody it s talking to me about alibaba in my ear. next week softbank see if it adds to existing buyback, thought to be something they will announce. will there be anything on governance, another thing apparently the discussion, albeit the one discussion they had face to face with mr. massa in tokyo was focused on, perhaps more diversity on the board. i would remind people, guys,

that he owns 25% of the the stock. you need a two-thirds vote of the outstandings to make any changes. figure that out, 25%, two-thirds vote, very, very hard for elliott to ever wage anything along the lines of a proxy fight or anything else here. they can try to get the weight of sort of investment opinion behind them, and hope for the best, that they can help the company address in governance deficiencies and frankly, organizational deficiencies, because this is a unique organization for such an important company in the sense of a lack of organization. >> well, people must understand that elliott is a cut above, i think, you may disagree but i've been working on what they're doing with evergy, a huge utility in kansas and missouri, where they are trying to get them to go more green. >> they are although not esg not at all they think it will help them in terms of their profile >> absolutely.

>> and making money. >> they are, they look like they might be some sort of -- no, they're just -- >> they could tare lecare less >> that's the point. >> we agree. >> yes i said this is amazing this was the piece i did last night. esg is not on the agenda the agenda is making more money doing this rather than buying back stock they've changed the game plan for hedge funds. >> that is true. evergy is interesting. still in process and we'll wait and see what really goes on. >> i was trying to take them away from you and let me cover them more. >> yeah, well you can do that. why don't you tell me what the performance numbers were for the last few years, because the fact is, and i'm not sure elliott's performance has been particularly strong, jim >> all right >> despite all the activism and news, at&t of course also large cap, the large cap activism they're doing [ cheers and applause >> that's why they were talking

what, joe and becky were talking to stevenson about the plant >> yes >> stock's doing okay. went down to 37, and came back [ bell ringing ] >> there is the opening bell the s&p 500 and cnbc real time exchange at the big board real estate finance celebrating its ipo and ppd at the nasdaq celebrating its own ipo. the public debut was yesterday, jim. biggest of the year so far >> we spent, i spent too much time looking at casper, but those kinds of, i like those kinds of deals it's good. there's biotech that's come public during this period. i focused on moderna which does really have the lead in the vaccine. definitely does no, doubt about it, the lead in vaccine and looks like it's going to try to come to something in the spring, which is rather radical, because of glaxo does vaccines, tells

you it takes a year. they are the hope, the company that's a hope. i really love them i love management and it's not hyped, moderna. they use rna blueprint, turn yourselves against it. this company is down substantially since they said they have a break-through and to me it's ridiculous it should be up. they're very good. >> okay. most of the market's down. >> yes >> s&p is down >> activision. >> atvi is not down? >> no, "call of duty" really shined a huge pickup in "call of dude . from wha a fr what a franchise >> what about take two >> wwe on execution, nba 2k they felt was a problem in execution, and that's hurting the stock a lot of people are so used to

perfect numbers. it wasn't perfect. so it's not hauser departing, because his brother is still very much in charge. dan hauser is very good. >> take two right now, the worst s&per, ebay is not that far behind, david. >> earlier in the week "the journal" reporting that ice, again owner of the new york stock exchange amongst others had interest, had approached the company. yesterday jeff sprecker chairman and ceo on the call went into detail what they might have wanted to discuss had ebay engaged and why they viewed it as a complimentary business to the ones that they had he was quite expansive on that kind of interesting, and then few hours later, ice says eh, we're done we're out. why? well, his shareholders one thing you get from a leak like that is you get obviously

pressure on ebay and also a market check, if you're ice, in terms of how your stock performs and shareholders view it they got that feel in terms of the way the stock performed and apparently after the call their sentiments were made more clear. and mr. sprecker moved fast. reminded me of benihoff with twitter. >> big man down. great moment in his book, he trips and forerunner because of a karma thing sprecker, no, pure dollars and cents. >> the idea that obviously ice wants to be inquisitive. they have, that's part of the history of that company in terms of how it's been built but on this one it seemed to be a bridge too far for the shareholder based at this point and what it means for ebay remains unclear. they did engage and now it's over and done with it appears. >> david, i was shogd acked you

didn't mention the brand new viacominitiative >> it is up. do we do breaking news on something like that? >> cbs all-access, it's now going to include -- >> new streaming service looking for a new streaming service. >> entertainment, kids, scripted, unscripted. >> yes >> you name it, they're going to try to have it in there. >> isn't that something? >> when they come with the streaming service. how it's going to be branded, whether it's sort of all packed in to all access which was the first streamer out there >> of it >> or whether it's a new brand is not completely clear. what it's going to cost. we don't know. but we know they're coming they're still going to follow the hybrid approach. not producing programming solely for their streaming service. stevenson said at&t is still going to produce programming for others but largely, there's a lot of stuff and certainly disney, what's getting produced is more or less going on to disney plus. it's getting produced more or less going to go on hbo max. that's not the case for viacom >> it does remain the most let's

say got the smallest multiple of any company in the s&p >> it does >> usually a referendum on how a company is doing >> right doesn't mean it's going to up just because it's cheap. >> amen. i remember smith corona marsh didn't go up, typewriter company. >> you do? >> everyone had a lefty typewriter, stock was killing it >> the other thing stephenson talked about with joe and becky was huawei people still watching this speech by william barr, the ag, which he says the u.s. should consider putting its -- >> unbelievable. >> -- financial muscle behind nokia and ericsson to counter huawei >> unbelievable. nokia and ericsson bonds huawei has $100 billion sponsored by the chinese we'd be sponsoring companies that basically screwed up and didn't do a good job.mazing wha has gotten to. >> it's odd but it's real.

eamon javers reported on it yesterday. i heard as well however quizzical this is, it's a real effort that is being undertaken by mr. barr, who by the way has some experience in the wireless business he was chief counsel at verizon. he was the general counsel at verizon. he knows his way around this stuff. but he's really trying to figure out a way to like buy control. >> but those companies -- >> william barr by-side analyst. >> we have the president taking up the economy, buy, buy, buy, and raising his value. he went hold to buy u.s. jimmy chill, i'm jimmy chillin'. i can't say how i feel about the managements or the companies because i'm chillin' >> barr makes bid for ericsson and nokia. >> sold to you those guys probably, nokia's no longer a phone company it's strickly just a river in finland, right >> yes >> and ericsson, it's been

backed up since the thought that barr might take a stake. >> we talked so often about it, we need a national -- we don't have a national champion at all. qualcomm is in one part of 5g. >> if you're going to anoint companies that are second rate, that's something that i thought the republicans thought the democrats like to do but now, we're like getting in bed with two companies that not even the germans want to use, even though they're compacompads they're expensive and don't have good technologies. ericsson and nokia right there, they'll tell you, we're behind huaw huawei if a lot of things go right. >> interestingly, ericsson actually is pulling out of this year's mobile world congress you want to know why >> my daughter is going to that darned conference >> coronavirus >> really? >> barcelona >> boy, there's no coronavirus there.

more modello virus last friday we know what happened this friday isn't shaping up to be great >> the chinese didn't come in last night and announce something. >> it's not a weekend phenomenon >> no, but the chinese usually between 3:30 and 4:00 have done something that made it so that the market was up and they didn't do anything last night. got up to 3:30 they have to deal with the horndus "new york times" article with the cordoned off like leningrad in 1942. >> basically the people in wuhan are left to -- >> that was an article >> two >> that was an unbelievable article. i was kind of shaking when i finished it. but no, i mean, i think that rick santelli correctly pointed out, i thought this week, later in the week obviously what you see what the chinese were doing. the chinese put $300 billion to work this week in a variety of things we didn't know if they bought

s&p. for all i no he thknow they did. >> they have to do something really big, aren't they? >> yes why don't they sell their bonds and get great prices we don't know what they have left but the dictatorship is i think shakier than people think and if president trump wasn't so busy calling xi his friend, you could make a push there. the problem is people think the army will take over. >> we did have some chinese copper traders declaring force majure you think the markets, they understand they might not reach all their commitments on phase one this year? >> they took the tariffs down. that was a sign of good faith. they need every penny, i think, to help their people and prop up their markets. this is not a great time china's got a lot. >> yes >> gdp >> understatement, the impact this is having we'll focus next week whether or not so many of the workers report back to their jobs and manufacturing will begin again >> i think it's going to be, we

are going to be at a focal moment will they come back? >> yes >> now of course if they come back, it will be volunteer david, it will be voluntary. >> and on what's going on, are there other regions. >> it's a dictatorship they want them to come to work is my prediction you know how we have executives come on, safety is the most important thing of our -- i'm not hearing that over there. >> safety first. >> i'm hearing gdp first, safety second >> this was a week where we got commentary on corona from qualcomm >> yes >> nike. today it's goose, as they say -- >> they have china exposure. they have a warm january, the stock has been down, down, down, down, down it's just the growth rate is shrinking dramatically i think this stock if it hadn't been down ahead of time would be -- there is a chart for you. >> ooh >> holy cow. turn that upside down, you have tesla. >> haven't mentioned tesla, 40 minutes into the show. kind of nice >> is that true?

>> aurora the ceo resigned, cutting 25% of corporate, oversupply in canada >> oh my god, there is a hundred years' worth of supply in canada, 100 years' worth of cannabis supply. next week i think you're going to get the new ceo of canopy, actual businessperson. >> coming in >> i think he'll tell it straight he was the cfo of constellation. i still have hopes, and james wells did fabulous reporting what's that great reporting, fantastic and shows you that there are some pockets of where it's really working. >> it is >> but it's recreation you got to do all states and make sure it's not a cash business and you got to be the thc is important >> by the way, speaking of ceos who are out, we haven't talked

about t. john at credit suisse this is a big -- >> that was huge >> reporter: -- global wealth manager bank, the spying scandal fascinating, ex-employees. he was apparently not aware of it, people left the bank in senior positions, being followed in some way to see if they were breaking their noncompetes i guess. >> he was doing a pretty good job. >> apparently it became too much of a distraction the regulateors are investigatin as well so new management there. separately but a part of his regime, they have cut compensation pretty dramatically as well from what i'm hearing at the investment bank at credit suisse bloomberg may have reported on this yesterday or this morning, but i heard february 5th they came out, it's 46, cash stock, you get a loan that you have to pay in for the cash portion, investor over 36 months you have to pay back if you leave pre-tax. >> just when the companies >> overall it is down double

digits >> very good job >> he was much more focused on wealth management but we don't talk often of that >> rocky first beginning of the tenure and terrific with the turn in the european banks what a shame, he didn't get the promisedland speaking of management changes, jim farley the new, c eo of ford >> going back and forth with jim. jim is so good he's a visionary he's exciting. and i'm glad, because farley is a straight shooter, that i just think is doing a lot of cool stuff and he's going to be, to show us the mustang mach 8, david, i'll take you for a ride in that baby >> all right, sure >> it's a car. >> credit suisse cuts forward to neutral, fyi. >> yeah, ford is not doing well. >> is he going to help >> i think jim can help. i do i think he can help. i like jim >> oh, t-mobile numbers. >> they're fabulous.

>> look at those quickly >> they were fairly strong, as jim just said. of course, the question remains, when we hear from the judge, the case that took place of course just up the road from here in terms of the state ags, california against sprint and t-mobile's plan to get together. it could be as soon as next week doubtful, perhaps it falls towards the end of the month but it's important, going back to our previous conversation about softbank, by the way, it was interesting to me that elliott would take a position prior to something like this. >> wasn't that funny >> the decision goes against and the deal blows apart as it will. remember i told you, they're not going to appeal so it's over if the judge says no. sprint is still owning 80% plus by softbank. the debt which they were going to unload will no longer be unbou unloaded it will raise a lot of different questions there and the question what does t-mobile do? they'll want spectrum. the 2.5 peck strum at sprint

that's so important to them as they roll out 5g nationwide. will they be fined sure will they be better off with sprint absolutely there's a lot of talk, not talk, that they're going to try to renegotiate the deal down for sprint, if in fact they do get approval from the judge. so we're watching a lot there, but t-mobile's numbers you thought were fine, jim >> they add just consistently. ledger is something, man he's an unsung hero. he's not been able to talk since the deal, talk to seattle, he owns that town >> we sing a lot about him >> we could. what's wrong with that he's made people a lot of money. >> certainly has >> we're back to 3329, well above where we started the week. bertha coombs, what is moving? >> hi, carl. we are seeing a broad decline this morning, a bit of a flight to safety with utilities and gold higher, but the market is on pace to snap a two-week

losing streak with big gains across the board, even as the potential long-term impact of the coronavirus remains up in the air and we're hearing that in terms of earnings wynn resorts reporting strong fourth quarter macau numbers, it was vegas the weakness for them. going forward the casino operators lowering guidance, the ceo matt maddox saying the closures is coasting the company about $2.6 million a day they've now closed down their casinos in macau though hotels remain open. you can't imagine there's not a lot of tourism, and you talked about the luxury retailer, canada goose reporting in line numbers for the fourth quarter but also cutting their guidance due to coronavirus and lower demand we also heard from vf corp. which has a lot of production and 60% of their owned and partnered stores in china are now closed that represents a big part of their market we'll be hearing from more

companies like alibaba next week we'll get more color as the weeks go by particularly from the retailers and how that is going to be impacting them we heard from burberry, this shutdown is having a bigger impact for them in hong kong than they saw from the hong kong demonstrations meantime, i want to switch over to health care, myriad genetics with an earnings miss, one of the worst performers, but overall it's been a very strong week for health care, with the insurers reporting pretty good numbers and rallying and biotech seeing its best week since november of 2018 that really is one of the standouts in the health care sector we're also seeing a strong week for tech overall, best week in about six months or so, and that is driven by chips take a look at the chips sector, seeing one of its best weeks since that one, since november of 2018, for biotech, i'm

correcting myself, it was the best in a year some of the big winners include microcrib, micron, cab at, better than expected earnings up double digit this is week. financials a bit more mixed, seen their best week since september. some of the banks under pressure this morning as we're seeing yields move lower, following that employment number the fed is also out with its stress test parameters the severe ad verse hypothetical scenario features a severe global recession and 10% unemployment in the u.s. carl, you got to wonder how the fed would respond under such a severe situation >> yes we'll get a monetary policy report at 11:00 a.m. today, bertha see what they say to congress. let's get to the bond pits, rick santelli, maybe rick can help us understand why we're below 1.59. >> reporter: there's a couple of things i like to keep it simple first of all it's a friday and in front of weekends, risk takes on a whole new dimension, especially at a time where maybe

coronavirus questions aren't as nagging to some as they were a week ago, but in many ways they still are and remember a week ago is when we had our lowest closes based on the coronavirus, so it makes this week and today's comps that much more important. look at the intraday of ten to the upside of yields selling off the price but then look what happens. look at one week chart tens are down half a dozen base points on the day but up seven on the week. the benchmark revisions were large and they were negative they should have been expected, the birth/death model of businesses largely to blame but the nonseasonally adjusted data was quite weak as well add in the friday and there you go if you look at year-to-date of tens, what really should jump out at you thinking about last friday that i mentioned, last friday's close, pick your favorite stock, pick any interest rate, pick the dollar, everything's higher. year to date we see the bounce is getting smaller off 151,

finally one week of the dollar index. i was bragging up every day this week it's just turned slightly negative on the session. carl, david, jim, back to you. >> all right, rick, thank you for that getting a statement from the cdc on a royal caribbean cruise liner that is at a port in new jersey where they are going to screen a family of four. the family does have a travel history to mainland china but not to hubei province. they're going to consult with new jersey health department and test for coronavirus out of an abundance of caution they say. that is the latest statement from the cdc regarding that royal caribbean cruise liner still to come this morning we'll follow the market action obviously dow is down 157. live interview with the vice president mike pence to get his take on the jobs number, the coronavirus, and a lot more. a reminder don't miss a special report tonight on the coronavirus outbreak at 7:00 p.m. eastern time right here on cnbc.

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on the news we just brought you from the cdc, screening a family of four on a cruise line off the coast of new jersey here an abundance of caution. that will take you back to levels last seen in october. dow is down 156. back in a minute because health insurance doesn't always pay it all. aflac! after surgery we had extra bills followed up visits, deductibles. we thought health insurance had us covered up for everything, but it didn't. aflac gives you money directly to help you with those things. i want to thank my wife, my mom, the duck. get help with expenses health insurance doesn't cover. get to know us at aflac.com and when you open a new brokerage account, your cash is automatically invested at a great rate. that's why fidelity leads the industry in value while our competition continues to talk. ♪ talk, talk

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jim, what's on "mad" tonight? >> all-time high doing fantastic today. taylor morrison a home builder, you know that the numbers this morning from employment indicate home building is incredibly strong let's find out how strong it is. >> going to watch the oscars on sunday >> um, my wife doesn't like them we'll watch something on hulu. >> good weekend, jim see you tonight. "mad money" at 6:00 p.m. thhe we come back an interview wi t vice president with the dow down 185 when we started our business

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welcome back to "squawk on the street." the last breaking news of the week and of course it's in the form of wholesale inventories and trade. on the inventories it is at these final numbers. we take our mid month read at minus 110 and that now becomes down 0.2, down 0.2 that is the lightest since september when it was down 0.7 we are expecting it to remain unchanged at minus 0.1 now with regard to sales this is a number but no mid month.

1.5 last month turns down 0.7. that is by far weaker. we were looking for a positive number and the 1.5 last month gets down graded to only 0.9 minus 0.7 is the weakest on the sales side since october's down 0.9 but both are disappointing and why do we care so much because of course this data gets folded into gdp data for the fourth quarter we just had it recently. it did have a two handle but this may affect the negative revision carl, back to you. >> thank you, rick santelli. good friday morning everybody. welcome back to "squawk on the street." i'm carl quintanilla with sara eisen and david faber at the new york stock exchange. the jobs number came in strong this is still the best week for the dow and the s&p since june of last year >> our red map of the hour starts with the pause to the market rally stocks on track to break the four-day win streak despite a pretty solid jobs report >> uber's drive higher

telling cnbc how they plan to be profitable by q4 stock is soaring >> an interview you won't want to miss. vice president mike pence will join us live from the white house, a first on cnbc he'll break down today's jobs numbers and discuss the coronavirus and a lot more let's start with the markets and the better than expected january jobs number. our senior economics reporter steve liesman has some of the highlights and can talk about some of the bond reaction, too >> reporter: a lot of highlights a very strong jobs report that blew past expectations the only negative being how long can it last with the challenges ahead? with nearly all the early commentary i'm reading from the street very upbeat bmo writes, american companies kicked off the new year in high style. capitol economics says the economy has more momentum than we previously believed here is the number everyone is crowing about. i'm sure the vice president will as well. nonfarm payrolls up 225 against an estimate of just 158. average hourly wages okay. bet thaern last month. up 0.2%.

unemployment rate rises because more people came in. you can see that in the higher labor force participation rate that is good where were the jobs? health care and education hiring up a whopping 72,000 construction up 44,000 that could have been weather related. it was a very warm january might have also helped leisure and hospitality. transportation and warehousing, professional business services also doing well up 28,000 and 21,000 respectively. jobs were lost, however, in manufacturing. that could be related to trade or boeing shutdown of the 737 max. in retail, big declines in hiring at department stores. economists see the report has confirmation for the fed to keep rates on hold. here are some of the things i've seen this morning. oxford writes this report should comfort the fed that further policy accommodation is unnecessary. and brean writes, this report will embolden the fed to let the labor market run hot why? there may be more hidden slack in the economy as we saw in moderate wage gains and increase in participation questions for the month ahead how the job market withstands

the boeing shutdown, continued weakness overseas, and, of course, the fallout from the coronavirus. but the strong jobs report tells us the economy is in a good position, carl, to handle those challenges >> steve, what about the market reaction so yields are lower. stocks are lower and the dollar is weaker what does that tell you? >> at least on the yields part, sara, i think the market is reacting in part to the news we got from overseas. the european econ numbers were really bad we got this morning in addition there were some comments by the vice chairman that seemed to also have an effect on the market the dollar has been relatively strong lately so i'm not surprised to see it come off a bit. it has been up several days in a row. so i'm not surprised the market is not really, you're correct, kooeg in eying in on ts number and the strength ahead. we had some reduction in the outlook for fed rate cuts but as i've suggested in the past i think the market is ahead of itself on where the fed is right now.

we talked to the san francisco fed president earlier this week. she was pretty clear that what she sees so far does not tempt her to lean toward a rate cut. >> do the benchmark revisions register on your radar and then second, what do you think of jpmorgan going to 1% china q1 >> i think, you know, that is entirely possible. i'll take the second one first the fall out from china is, in china is going to be substantial. what we don't know is the fall out over here. i've seen estimates from 0.1 to 0.2. initially, that was before jpmorgan basically took its numbers way down so there could be a greater fallout here from that and if it's just a quarter in china, it's okay you would get some kind of snap back there is no change at all to the trend. we should have some decent snap back right there, carl >> steve, thank you. steve liesman. joining us now to help make sense of the market reaction despite the better than expected jobs number is the chairman of

evercorp isi ed, welcome and good morning >> how you doing >> what do you make of this reaction to what was seemingly a pretty terrific report on hiring in america >> so we thought it was good, not great. the unemployment rate ticked up. as you saw and average hourly earnings which i keep thinking are really going to take off, didn't really take off they're only up 3.1% so that is why the bond market is rallying a little bit it's sort of a goldilocks report but i agree with steve the economy is in a really good position when you take all the other indicators we have, like unemployment claims, another jobs measure, the employment data are good and the economy is doing fine but this report is more of a slow and steady. good but not great >> but isn't good but not great goldilocks actually good for the markets because it suggests the economy is growing but fed is

not going to be in any rush to tighten policy >> right. >> it is interesting that today is the day for the pullback. >> i think the pullback is really still a worry about the virus and we have gdp growth our team has gdp growth at zero in the first quarter we serve about 21 companies in china and that survey dropped this week about two points to just 41. so it was as high as 70 in years past, so china is really slowing. and that worries people. for sure i think there is a lot of momentum here and a lot of liquidity in the system. money is everywhere. >> you said zero growth? zero gdp growth for china this quarter? >> first quarter jpmorgan at one. i think that is the right spirit

of it. >> so a lot of american companies especially in luxury retail have been warning this is going to hurt results. the latest this morning is canada goose the stock is getting punished. they make $1,000 parkas. china was a key market they took down the forecast to negative it was supposed to be earnings 25% this year declining. they say across greater china have and continued to experience significant reductions in revenue. they take down the revenue forecast as well, ed how hard is this going to hurt the american economy >> so i don't think it is going to have that much impact on us i know it is a little hard to believe but we are so solid. but as they say, it is not the virus. it's the treatment that matters. people aren't going out, they aren't shopping. that is what is hurting particularly in china. the data here in the state is not just the employment data which is for january but we

survey companies every week and into february. that's still strong. i mentioned unemployment claims. we survey temp and unemployment agencies they say business is still very solid. consumer confidence is still very solid here. so far the virus is more over there. >> ed, if they printed zero percent they have no growth whatsoever in china in the first quarter, you don't think that is going to have an impact in our economy? >> it'll have some but this is a little bit over done or over worked been plowed too much if you look back at the -- at 2003 when they had the sars, the u.s. economy actually accelerated during the sars. a lot of differences but i'm just telling you at the moment -- >> this is a lot bigger than that and obviously the chinese economy is now squarely number two. it wasn't even close back then a lot of differences between now and 2003 >> i tell you, in 2003 if you

bear with me it was -- the economy was very weak in 2003 and today the economy is very strong you also have a huge amount of monetary stimulus in the system and, you know, i'm shocked but there is still no inflation. so i'll watch it like a hawk i think growth will be something like 2.5% this year. >> ed, kudlow is on the tape and obviously agrees with you saying he sees, quote, absolute minimal impact on the economy here from the coronavirus. at the same time he is saying he wouldn't mind a bolder fed and rate cut how can he say both things at the same time? >> first, there is the idea of insurance. you know, because it could be worse. and you could have a better economy. like he is forecasting 3% growth and so if you want to have a better economy you could get the

fed ease but he has a bit of a political job there as well as an economic job. >> we know the president wants it as well, ed just wanted to hit the minus 12,000 jobs in manufacturing because it does feel like this is the shaky part of the u.s. economy. what is your outlook is manufacturing out of recession in this country and i guess you think the country can continue to do well without that >> so i'm not sure, sara, on that i'm very fluent in this topic and the data right now is bad on manufacturing. we survey cap goods companies. that went down went down with our china survey. the count is going down. loadings are weak. we do a trucking survey. that's been weak then you come around to the front of the economy and that is strong things like higher education, health care, entertainment, those are all new doing quite

well and when i travel around the u.s. which i do a lot city after city i visit -- housing is having a nice run up right now as a bit of an offset to manufacturing. but i thought it was bottoming a few weeks ago but right now i think the bottom -- >> thanks for joining us >> my pleasure >> evercorp isi. still to come the newest edition, the next guest says uber is the top pick for the 2020 season with stocks soaring on better than expected results almost to $40. later on the white house reaction to the jobs number. a live interview with the vice president.

when it comes to your business internet, which is more important?

♪ ♪ okay, i wish i didn't have to choose. like the more i think about it, the more i want to jump to each room. what if i said you can have it all? ♪ ♪ comcast business gives you connectivity that goes beyond. that's what we want! that's speed, reliability, and security, all from one provider. touchdown! get started with internet and voice for an amazing price. call today. comcast business. beyond fast. this is a business as it grows can become very profitable and in 2020 we said we can do the same thing not just the rides business but the whole business. if you look at our plan for 2020 for every dollar of revenue growth especially q4 to q4 we expect to drop 50 cents to 55 cents to the bottom line absolutely do-able to get to profitability by q4 but at the

same time make the investments we want to make. >> that was the uber ceo earlier this morning explaining the company's path to profitability. as you see the shares are up 7%. this is after the company did post better than expected results. joining us now to break down the quarter oppenheimer and, mark, i'll start with you. give me your reaction to what you just heard of course moving up the move to so-called profitability. they still lose an awful lot of money right now. >> yeah, they do lose a lot of money when this company went public it was the biggest loss generating ipo ever. so the number one issue for investors for the market, for the street was prove the path to profitability. if they do that the stock goes higher that is what they've done the last couple quarters especially what investors should focus on is the core rides business doing 24% ebitda margins they think they can get to 45% ebitda margins and they're telling you a quarter of the market is already there. that means there is a huge profit pool just off of the

rides business you don't have to believe in atg. you don't have to believe, you can buy uber and make money just on the rides business today. that is why we like it it is our number one pick. >> wow explain to me the 45% margin how do they get there? raising prices what exactly is it in terms of taking costs out helping me understand that number >> yeah, yeah. look, david, it is the key question on the stock. and so the one key data point is they're already there in about a quarter of their markets so it is not like it's all on the -- it's already there in some of the largest markets too. they'll get leverage against things like insurance costs. third, i think they have pricing power. the value proposition of uber and lyft, is much broader than just it saves me money as a user we've done extensive survey work on this. it is practical, better than public transportation. often not always but often better than the taxi experience. almost always. so i just think they have pricing power.

they can gain leverage against some of the core expenses, rnd, etcetera that is where you'll see the ramp to profitability. i don't know if they get the 45% but the path to 30, 35, 40% i think is very clear. >> do you agree, jason i think you like the stock as well, see it going to 50 >> we do agree this morning we took up our ebitda estimate for 2021 by almost a billion dollars we agree with the sum of the parts logic. we think kind of where investors were penalizing the stock was there was a focus on regulatory issues, london, los angeles, and they were kind of hesitant even if they believed in the kind of 20, 21 ebitda number they were hesitant to put a growth multiple on that. what you're seeing over the last month and kind of through today is investors, a, are getting more comfortable it is a growth story and estimates went up. >> got to give you credit. you named uber as one of your top picks going into the new year, mark i wonder, at this point does the

street still wish the model was as pure as lyft's? >> that is a great -- look, the debate we often times have on this stock is which should i own? lyft is the cleaner story. i don't have to worry, it's just in the u.s. market i get that for a short-term perspective those points are very valid. longer term you want the company with greater market share. that is uber you want the company with international exposure i don't know of a megacap tech name that doesn't have large global presence. that is uber's advantage, too. i think they'll be able to figure out ways to get to profitability. they'll either cut it to profitability, i.e. sell uber eats in india and south korea or scale it another great data point they are in 25 plus countries the number one or number two player in the food delivery category. so far he's been good to his word if we're not number one or two we're out. he has done it twice i have a long standing relationship with darr i've watched him over the years. this guy executes well

it is one of the reasons why that stock is part of our for the polio. >> mark, on eats, didn't the ebitda loss also reach a new high >> yes yes it did so the key thing for investors now -- >> so that's a problem >> it is when are we going to get peak eats losses, ebitda losses i think in the march quarter or maybe the june quarter. that is going to be kind of the next catalyst. we don't have it yet i'm just saying it is pending when the eats loss starts to decline. >> jason, back to you. the california change in the employment status of their drivers. right now they are not operating in london. unclear whether they will be any time soon. there are continuing to be some challenges aren't there? >> yeah. i think it is what people are recognizing that in every country and some cases certain markets per country there will be a regulatory framework and ultimately what uber's advantage should be if you are the largest company in the ride hailing space you have the resources to work through the regulatory

regime in each market, specifically on l.a. we actually asked on the call last night, you know, ironically he said it is actually working out better for drivers because they're getting paid more under their kind of adjusted model riders unfortunately aren't paying more. unclear how that is impacting demand in california they are doing this so they can say, look. we are not ab 5 compliant and the question would be would you have to deploy that in other markets? but it sounds like l.a. they're managing so far so good. you know, also they were optimistic on london last night on the call. >> mark, you are so bullish that you're actually trying to make fangu a thing? >> it is a large market, large category fangu very much. it is a large enough market opportunity. good business model. like you put those things together, it's still early

i know it's still speculative. there are a lot of risks, regulatory risks here, execution risks here i'm intrigued by a company of that scale going at that size with that kind of profit potential. yes it could be as good as fang so fangu >> all right the shares are up 46% over the last three months of course off those lows jason, mark, thanks to you both. >> thank you >> thanks, david still to come, do not miss our first on cnbc interview with vice president mike pence live from the white house in just a moment and a reminder you can always watch us live on the go on the cnbc app down load it today "squawk on the street" will be right back ti i lsedongtsoss wn 159. phew! it's back, with lobster mac & cheese. it's gone again! it's back, with shrimp now! steak & lobster starting at only $16.99. and try our everyday lunch combo starting at $7.99! outback steakhouse.

more than two dozen chinese nationals aboard a royal caribbean cruise that docked in new jersey this morning. it was screened for the coronavirus. four passengers have been taken to nearby hospitals. in a statement to cnbc the cdc says it is aware of two family members on a cruise ship that became ill onboard the family has a travel history to mainland china but not a history of travel to hubei province cdc staff consulted with the new jersey department of health and have decided to test all four

family members for 2019 novel coronavirus nco v-out of an abundance of caution new jersey department of health will facilitate the specimen collection and the samples will be sent to cdc for testing we will continue to monitor that situation and bring you any updates in real time in the meantime there is rcl down about 3%. >> time for our etf spotlight looking at the ticker smh moving lower like most of the market. currently trading down over 1.6% top holdings here, taiwan semi, intel, nvidia, asml all in the red but amd a bright spot up more than 1% today despite today's pullback, though, smh still ontrack for the best week since june of last year up 5%. has done well with the overall market but sells off on some of these china concern days when coronavirus weighs on the global outlook. >> we're seeing it today sara, good time to ask you what

is coming up on "closing bell" as i know we'll keep a close eye on the markets >> wilfred will join us from washington after his interview with vice president mike pence in a moment. and also still skepticalbut some progress in the turn-around. then the closer today nyse president stacey cunningham her take on ipos with casper falling on its second day of trade uber's target a big one for the direct listings and more coming up on "closing bell. >> not the end of the hour, though, right? >> no. we're just preparing for the vice president so we'll give you an early taste >> exactly right after the break a live interview with vice president mike pence first on cnbc. we'll get his take on the jobs number on the situation in china eeth the virus and a lot more. sp 3334. back in two minutes. at fidelity, online u.s. stocks and etfs are commission-free.

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welcome back to "squawk on the street." i'm sara eisen with carl quintanilla and david faber live as always from post 9 at the new york stock exchange. an hour into trading and things are looking better than where we were about a half hour ago dow still down 156 points down 229 earlier at the session lows. s&p down 0.3%. guys, still looking at a very strong week despite the declines today. up more than 4% for the week for the nasdaq today's better than expected jobs report not exactly celebrated, though 225,000 jobs were added, better than all the economists' forecasts for month of january 3.6% unemployment rate a little worse than the 3.5% rate still near a century low there wages up 3.1%. so economists pretty much saying it was a good report but some questions about the sustainability even though it has been a pretty strong run here for jobs. >> yeah. kudlow did have some

constructive comments a few moments ago. might be why we came off the initial lows he thought that coronavirus would take 0.2 off usgdp and given the conversation the president had with xi last night that any delay in purchases of american goods could be made up in the back half of the year, that the two-year pledge would be met in his view also said there is no evidence the u.s. is coming to the end of the cycle, that they'll try to show the uk some options on 5g so with that, it is clear the white house is not terribly thrown by any potential effects if china does show no growth in q1 >> jpmorgan came out with a revision to usgdp for the quarter, took it down a quarter of a percentage point on china we get hit primarily their big market for our exports and of course we buy a lot of their imports. so it is through trade and all you have to do is look at earnings overnight burr brie, today, canada goose this week really luxury retailers, tapestry, capris, all

saying it is going to hit earnings, nike included, because the chinese consumer is basically static not buying now and we're starting to get gdp estimates. everycorp isi zero% growth from china this quarter jpmorgan said 1% that's nothing the question is how fast it can come back. >> that is of course, the chinese have been trying to emphasize the consumer more in what is still an export led economy. but having everybody behind their doors of their homes doesn't obviously lead to a lot of purchases in any way or a lot of activity. that is where the state of things is in so many of the main population centers in the country. >> i would also point out the bond move right now. there is buying of treasuries, yields go lower. that is really dictating the action in the stock market if you look at the three groups actually higher right now, it is utilities, real estate, and staples. that's where you go when bond yields are lower for yield, dividend yield, and safety plays. material and energy at the bottom of the list energy just keeps under performing even in good days

where we have the market up over the last few sessions. >> this is with the opec advisory committee essentially saying, opec should extend production cuts to the end of the year, even adding some on top of that. who knows where we would have been if they hadn't said that? of course we'll see what opec decides in the end >> china is such a key buyer of energy products that if china's growth slows to a halt, i mean, that is a significant weight >> they have significant commitments as part of the trade agreement with us to buy energy products so to speak and it also raises the question, it is not just agricultural as to whether they'll have to delay those purchases, which were far above anything that they did in the past you wonder as well when you look at names like exxon or chevron about esg and whether it really is having an impact in terms of the lack of incremental buyers for some of these stocks and on the flip side, look at some of the multiples for some of the so-called esg darlings that are showing multiple expansion if for no other reason than they

seem to fall into the right metrics. >> look at tesla >> well yeah tesla i consider its own outlier. >> a lot of people think that is the ultimate esg play. >> it is certainly at the top of a lot of people's list so it doesn't hurt >> when you compare the outlook here to what is happening in europe today, french and german industrial production, france down two eight yesterday german factory orders down for the 19th consecutive month. their manufacturing sector is nowhere near showing the recovery that ours is appearing to promise at least if you look at ism. >> which was an expansion so that was a nice surprise though the numbers in the jobs report today, manufacturing lost jobs, down 12,000 so the jury is out on whether we've seen the bottom there especially as the coronavirus grinds china to a halt that is the sector of course with the supply chain that could be impacted though i will say a lot of these retailers in their commentary are saying their supply chains are not affected we did hear that from canada goose and nike's crowe told eo e

that earlier today as long as factories start to open here so far not an impact on the supply chain as much more on the consumer demand side of things. it hurts europe more germany is the export economy, industrial production was down 3.5% that was a lot worse than forecast on a week where christine lagarde the new ecb president came out and said we don't have that many tools to fight this thing. >> right as for individual names, we mentioned uber and mark mahaney just added it to fang. pins is the other good story revenue was ahead. arpu above expectations, average revenue per user their guide was pretty solid an 18% boost to the stock at the open which is now settled back to 12% but here is a name, david, cramer was pretty hot on at least today >> yeah. talking about it now being a true company i guess is what he had to say of course after a strong quarter there and obviously also pointing to uber and citing their very strong

quarter and conference call got him excited, carl. >> let's get over to what looks like a foggy looking washington, d.c. our wilfred frost is at the white house along with the vice president. wilfred, take it away. >> reporter: sara, good morning to you thank you very much and our thanks in particular to the vice president for having us here today. it is a pleasure to be here. >> welcome to the white house, will >> reporter: what a week it's been great timing to be here. when you consider the mayhem of iowa for the democrats, the success of the state of the union, the impeachment acquittal, and today's yet again strong jobs number that we're going to dive into in more detail, what is the mood like here at the white house? >> well, look. this has been a great week for america and a great week for president donald trump thanks to the president's leadership, we're in the middle of a booming american economy. we've rebuilt our military we've appointed a record number of judges to our federal courts of appeals we're respected in the world again. the senate acquitted the

president of the united states and now a job report that reflects not only 225,000 jobs but people coming into the work force, the labor participation rate tells the story the american people see that thanks to the president's leadership, cutting taxes, rolling back regulation, unleashing american energy, but also securing historic trade deals, the usmca phase one with china, this economy is working for working americans and we've seen more than 3.5 million people come into the work force and that is reflected in that report today so it's a great week for america. and it's a great tribute to the leadership and the vision of president donald trump >> and jobs and unemployment, is that top of the list for you, mr. vice president most importantly >> i think for this president it's always about the safety and security of the american people first. that's why in the last month you saw the president take decisive action to respond to violence.

one american life was lost at the hands of iranian backed militias this president ordered air strikes on five militia air bases in iraq. first time in ten years. and then when we had the opportunity to take out the most dangerous terrorist in the world, qassem sal mainy this president acted. and even after iran's response no american casualties iran is standing down and the news reports today that we took out another terrorist leader in yemen. so it is always first about national security, the safety of the american people. the president's strong action on the coronavirus to protect the health of the american people. but right after that here in these hallways, you are absolutely right it is about jobs, jobs, jobs and after eight years of the last administration, that thought we could tax and borrow and bail our way back to a growing economy, this president put common sense american principles into work and used what he in davos called the

american model, a free market model of less taxes, less regulation, more affordable energy, and fair trade in tand american economy is booming. >> certainly the numbers are very strong and the unemployment numbers in particular very impressive i wonder whether you feel, though, a little bit of the gloss of that impressiveness needs to be removed because of the deficit, the size of the deficit and the direction that it's heading >> well, we saw in the last administration a doubling of the national debt. but we also saw an american economy that wasn't growing by more than 2% it was the slowest economic recovery since the great depression and the president came into office and he said, first and foremost, we have to restore growth that is how we will deal with the long-term, fiscal challenges facing our country and deficits and debt are right in line but it is first about getting this economy moving again and we

really do believe the trajectory of this economy. we'll end the next year in the 3% range, which is what president trump said back on the campaign trail in 2016 and day after day, advancing the policies that he promised to the american people against unprecedented resistance and obstruction by the democrats on capitol hill it's been delivering and that is why this economy is working for every american especially for working americans. you know, as i travel around the country, you know, i go to meetings large and small and i have hard working americans coming up to me every day and just saying, tell the president we appreciate what he is doing it's making a difference in our community. people are going back to work. this is really a blue collar boom >> deficit is a percentage of gdp, though, has ticked up each year this first term would you like to see it as a focus for the second term if you win one to change the direction

of that? >> i think the president has been very clear. we've sharpened our pencils on our budget and we'll continue to do that. and in a second term we'll continue to address those issues be you president trump really believes the real long-term solution to the fiscal challenges in washington, d.c. is making sure the budget of every american is growing. real income after tax income for working families is actually increased by $5,000 a year in the last three years. so the president is going to stay focused on a growing american economy and once we get this economy rolling we'll continue to hold congress to account and we'll work real hard not just to get president donald trump four more years in the white house but make sure we have a republican senate and a republican house to keep america growing and to deal with the long-term fiscal challenges. >> let's talk about the stock market mr. vice president. record highs at the close again yesterday and, clearly, another example of the strong economy this morning is there a belief here in the

white house that the two are very closely linked? >> well, we think the stock market is just a reflection of consumer confidence. and the confidence of the -- of investors around america you know, the market actually was up over a thousand points over the last several days and i think that is all a reflection of the fact that everything president trump said in the state of the union address is being reflected all across the country. businesses large and small are feeling it we're seeing growth in this economy. and i think you have to -- you have to give the president's strong stand on trade a lot of credit for that as well. he drove a hard bargain. we renegotiated. our trading relationship with canada and mexico, the usmca is now signed into law. we think it is going to create hundreds of thousands of jobs. we think very soon it is also going to be reflected in this economy. the phase one deal with china

and negotiations go on to deal with some of the larger structural issues we think is also going to greatly benefit not just agriculture but it's going to benefit businesses as we've begun to deal with some of the structural issues, intellectual property, forced technology transfers, we've -- the president spoke to president xi last night and those discussions are ongoing even as china deals with the heart breaking crisis of the coronavirus. >> how have you felt that china has dealt with that coronavirus? and have you been a little more reserved perhaps on criticism of the initial sharing of information because of the warmer relationship off the back of phase one >> we think that china has demonstrated an unprecedented level of transparency not just with the united states but with the world community. and in their discussion last night, the president and president xi discussed increased

cooperation. they discussed the role of the world health organization. i mean, the loss of life, the coronavirus that is impacting people of china and, fortunately, a small number of people in the united states to date, is -- it's heart breaking but we stand ready to work with china to provide them any and all support. the president made that clear last night to president xi >> 11 americans among the 61 diagnosed on the cruise ship off the coast of japan >> right >> that aside are you confident the threat of this virus as it relates to americans here has peaked and is now declining? >> well, out of an abundance of caution, the president took unprecedented steps to end airline travel and limit access from china to the united states. and we are encouraged by the

results. we're encouraged by the numbers. but we met late yesterday with leaders from the cdc we got the latest briefing our team is going to continue to lean into that we think that the threat here in the united states remains fairly low because of president trump's decisive action, again putting the health and safety of the american people first. but last night president trump also made it clear that the united states of america is ready, willing, and able to deploy resources with the world health organization to help china address this crisis. >> let's pivot back to the trade deal with china, mr. vice president. you and the president have been very critical in the past of u.s. companies that had either outsourced production to china, too readily, or sought to make sales there and in a trade-off for access or information. does the phase one trade deal now mean that u.s. companies can go all out again to seek profits in china >> well, the phase one trade

deal gave some tariff relief, but it was only the tariffs that had been imposed since last fall i mean, the vast majority of our tariffs remain in place, and that is because we have serious and long-term issues that still need to be addressed the president has made that very, very clear with president xi and with all of our negotiators we think that it is a work in progress but look the president said early in this administration, we arrive -- half of our international trade deficit was with china it was extraordinary but i remember in early meetings the president sat down with chinese officials, the first time he was in the oval office and spoke to the president, and he just said, look the era of economic surrender is over i don't want to talk about what happened in the past the president's been openly critical of the policies of past administrations in both parties. but we're beginning to see china step up, be willing to take

steps, in fact, the announcement yesterday of $75 billion in tariff relief wasn't even a part of the phase one trade deal. we think it gives evidence that china is beginning to step forward, take the actions necessary, but we'll continue to stand firm the american people can be confident the president is going to continue to put american workers, american jobs first we'll stand strong on china. and we're going to continue to insist that china adopt not only a more open market for u.s. goods but also that they adopt the kind of structural reforms that, like, you know, that have threatened intellectual property, resulted in intellectual property theft, forced technology transfer those changes have to happen for us to truly have a fair and reciprocal relationship with china in the long term >> how disappointed were you, mr. vice president, that the british decided to grant access

to huawei to their 5g network? >> well, i think the president has been very clear. secretary of state pompeo reiterated it this week. the united states is very disappointed that the united kingdom has decided to go forward with huawei for a portion of their information technology >> tone report said the presiden was apoplectic with fury is the gist of that correct? >> i never comment on the president's private conversations with me or others but we were profoundly disappointed look, when i went at the president's direction in september and met with the prime minister johnson, i told him the moment the uk is out of brexit we were willing to begin to negotiate a free trade arrangement with the uk. now the uk is out of brexit. our teams have begun that process to work, but we just don't believe that utilizing the assets, the technology of huawei, is consistent with the security or privacy interests of

the uk, of the united states, and it remains a real issue between our two countries. >> is it a deal breaker on a trade deal >> we'll see we'll see if it is we'll continue to make it very, very clear the president has a strong relationship with prime minister johnson. and we -- we are anxious to build our economic ties. but we have made it clear, the prime minister johnson and to officials in the uk, that we -- that as we expand opportunities to build out 5g across this country the fcc just announced a new arrangement that we think is going to catalyze the expansion of 5g technology we want to see our companies meet the needs in the united states and uk and among all of our allies without the compromise of privacy and the compromise of security that necessarily comes with huawei and control by the chinese communist party. >> on that note the attorney general said yesterday the u.s. should invest in companies like

ericsson and nokia to help them catch up with huawei in terms of 5g technology. is that a realistic option in the short term >> well, great respect for attorney general barr, but we believe the best way forward is we believe the best way forward, the fcc has a plan for dealing with the spectrum that we think is going to make 5g much more rapidly available all across the country, and that's the plan the president has endorsed and will be carried forward we can expand 5g especially expand 5g to rural areas of this country by using the power of the free market and american companies. the united states and our allies around the world can meet those ourselves. >> one more question senator romney decided to vote against the president. he said he felt it was his duty to do so and said, he had an

inescapable conviction that my oath before god demanded it. you disagree with his vote can you forgive his motivation >> well, look, i don't question his phfaith. i question his judgment. we couldn't be more grateful for all the members of the house and senate who not only stood by president trump but stood by the presidency, stood by the constitution and rejected this pa partisan impeachment, and acquitted the president. you saw the president yesterday thanking those individual members. and we'll stay focused on the gratitude that this president, this administration feels for all those who saw through this partisan impeachment, the sham investigation, saw it for what it was but the remarkable thing when you think about the progress that the president celebrated in the state of the union address, 225,000 jobs in the january

report that came out today this president did all of that over the last three years in the midst of unprecedented obstruction, resistance, continuous investigations, recriminations but as i said just an hour after the acquittal was voted in the senate, the gooed news is it's over, america, and the president is right back to work today as he's been every day of this administration, working for a stronger, more prosperous america. >> congratulations on another strong jobs number thanks for having me today >> good to see you >> vice president of the united states carl, back to you. >> thanks so much for that obviously the president giving china some props there for their transparency, saying that the risk for the novel coronavirus in this country remains low. on huawei, his quote was, we'll see. this piece in the "f.t." describes the phone call between the president and the prime minister which the president was not happy.

apoplectic is how sources put it we'll see if that interferes with anything. >> he was willing to say the president and the administration were profoundly disappointed in the uk's decision, and the we'll see, how it affects the trade deal i mean, that could be interesting, sending a message there to prime minister boris johnson. as far as the economy, obviously victory lap continues on the jobs growth, better numbers today, says we'll get to 3% growth this year you have to wonder what the economy can pull out of a hat or white house the can pull out of its hat to get there we're tracking around 2% as we speak. yes, it's only the first quarter, but the outbreak of coronavirus, the weakness we're seeing in europe and how that impacts the u.s. economy, it will be a question of whether we can see that 3% level. >> maybe we should ask about that the goldman sachs chief economist happens to be right here good to have you happy friday >> good to be here. >> jobs number, you were not far from the actual number, right? >> we thought it was going to be

a relatively strong number the claims numbers, the adp as well was very strong, and those suggested this was probably going to be pretty firm. i think there was a positive weather effect as well, so that helped construction employment was up very sharply i think some of that is the housing sector doing better but some of it is also weather factors. >> can you explain why the bond market didn't get more of that >> well, i think this the bond market is probably focused on other things i mean, it's really been more the news flow around, you know, coronavirus and other issues that have really driven that so right now, and i would expect this over the next several weeks, the sensitivity to economic data is probably more also the other thing i would say is it probably doesn't really change much from a monetary policy perspective because -- >> the virus or the jobs number? >> the jobs number just in explaining why we haven't seen a large reaction to

that, the fed's on hold and this just confirms they're on hold but it doesn't really change anything >> right as far as the virus itself, i think you said maybe 0.4% of -- >> in the u.s. it's going to be quite a bit more than that globally and especially in china. in the u.s., we're estimating 0.4% off of q1 and then we think that gets added to q2 in a lesser degree q3 >> how much longer can we continue to print jobs numbers like this? >> well, this was an outlier to the high side in some sense partly because of the weather factor, but, yeah, how much longer can we be in sort of 150,000 to 200,000 range we think it's probably going to gradually come down but only gradually, and that still pushes down the unemployment rate we think thi maybe to 3.25% by the end of the year. >> on the growth conversation we were having, vice president pence reiterating the 3% goal the administration has what does it take to get there

this year? >> i think for 2020, that would be a real reach. our estimate at the moment is 2.2%, and we're on the optimistic side of the consensus. that does build in, you know, a reacceleration after what's probably going to be a somewhat weaker first quarter partly because of some of the virus disruptions, partly because of reduced aircraft manufacturing from boeing specifically so we think that gets added back so we'll be in the 2.5% to maybe 2.75% range in terms of the sequential numbers post q1 but getting to 3% for the year is tough. >> so the demand that is forgone now in the first quarter is a result of what's going on in china in particular, that shows up or does it just disappear? that's what i'm wondering. you can assume it shows up later? >> so far we don't actually know how much disappears in q1. we're make estimates but we're

not yet seeing that in the numbers. our expectation, though, is that activity falls below trend, then you get back to the previous trend. you don't necessarily make up in level terms for what you lost. if you didn't go out to dinner q1, that doesn't mean you're going to go out to dinner more in q2. >> twice as much, right. >> but just get back to the previous level path and that alds to the growth rate. >> where do you see the ten-year ending the year? >> we're at 2.25% for the end of the year >> really. >> we think -- you know, some of the pricing of fed cuts is going to come out in our baseline view of the economy the fed doesn't do anything. and the term premium at the long end of the curve is quite compressed as well, and we think that probably widens a bit >> would that reflect from this point a net inflationary environment? >> well, we do think that the inflation numbers probably will rise somewhat.

that's partly because the year-on-year rate at the moment at 1.6%, if you take core pc inflation, is being held down by some more statistical factors that are probably going to come out of the data over the next few months so we don't think we'll be quite at 2% by the end of the year, but we think we'll be close. >> i know you're not a macro strategist would you expect that to weigh on equities or not >> as long as you're going towards 2% as opposed to meaningfully above 2%, i don't think it's a bad thing i mean, in fact, the fed is saying that ideally at this stage of the business cycle they might want to be a little bit above 2% so i don't think it's going to be a major problem >> what about the election have you guys at goldman started modeling what it would look like if someone like bernie sanders got the democratic nomination? >> we've been following very closely what's going on in the primary and clearly if you look at some of the prediction

markets that, you know, bernie sanders' chances are stronger, we think that ultimately if you have a democratic president, what's probably more important is whether democrats also have a majority in the senate it's really more the sort of marginal senators that determine what actually gets passed into law than the president. >> what would be the best combo for the economy? >> i think that's hard to answer in one word, frankly >> that's a pass >> yeah. that's difficult to answer briefly. >> always appreciate your time thank you. >> thank you >> with goldman sachs. dow is down 181. let's get over to dominic chu and get a sector sort. >> carl, let's talk about what's happening with the overall markets. we're seeing red on the screen and stocks are trading to the downside but still on track to finish the week in positive territory, snapping a two-week losing streak. this is the only day so far this week that has been in the red, four straight winning days

coming off the losses we saw at the end of last friday now, consumer discretionary, as you can see here, one of the key focus sectors, all those names with particular exposure to china and the coronavirus outbreak like the casino operators. those are key. all of them trading lower today. we've also got some higher-end retail names like tapestry, nordstrom, capri holdings, formerly known as michael kors then of course the cruise operators, travel operators, monitoring the developments with the royal caribbean ship docked off the coast of bayonne, new jersey, with several passengers being tested for a possible coronavirus issue. keep an eye on all those consumer discretionary stocks. back to you folks at the new york stock exchange. >> we've got some commentary, dom, from the world health organization on the tape right here some of the