good morning welcome to another jobs friday futures somewhat muted ahead of the government report which is due at 8:30 a.m. eastern. bitcoin dropping after elon musk tweets a breakup meme and the amc story continues with the wild swings and stocks. ceo taking the message to the investors to the high profile youtube channel. it is friday, june 4th, 2021 "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen and andrew ross sorkin. joe mentioned the u.s. equity futures are muted.

big news at 8:30 westminster abbey a.m yesterday, the dow dropped 23 points s&p was down 15 points it is indicated up by 1.5 points this morning nasdaq was a big loser down 142 points. the worst day since may 12th it is indicated up 11 points at least at this moment check out what is happening at the treasury markets the disappointing jobs number from a month ago and we will see if more workers come back into the workplace for the most recent month of may. the 10-year is yielding 1.62%. we have a lot to talk about. we have three letters here amc. shares trading lower $48.20 off 6% in the pre-market yesterday, the company sold additional 11.5 million shares we told you about that during

the show the price tag they got for it is $587 million last night, amc ceo sat down with trey collins on youtube he is one of the amc apes. many of them own amc stock among the topics, aron argued the shares were in the best interest of amc's future take a look. >> if you are armed with the tool to go find value creating opportunities, we can do that. if we're not arguing this tool, then you are tying your hands and you make it that much harder for us to land on some of the attractive opportunities that benefit us you will. >> aron making the case to shareholders this is a new phenomenon telling shareholders you need to

give us the right or access to sell more shares that would happen in 2022. this goes back to the explanation and explains what we talked about on the program yesterday about the whole investor connect idea. he needs these folks to give them authorization they are out of shares no more shares can be sold to the public now they can't raise additional money. >> they are asking for 500 million additional shares. permission to use that over at that time. >> one reason they were using this is because they were out of shares i think the market thought they were out of shares these shares they ended up selling that were supposed to be used for the incentive plan for employees that had been put to the side they said we will not do that. he made a great case on the shareholders we're in it with you and not taking anything. you have to give us more access and trey did this interview. >> shares for employees being

replenished? >> unclear that was not the argument he was making we will see. they are not paid in 2021. there is no incentive program. the incentive program is to keep the company alive and the share price higher because all of the executives are beneficiaries of this. >> still reacting positively to the previous stock sale. still giving money to them in the low 70s. they announced this. we are not sure when from time to time, we may sell that knocked it down all the way down to 50 they hit that bid as quick as they could even to get 50 50 is not 62 it's not 72. >> they were in the market yesterday. that was the plan. from the beginning. >> it takes time oh, who knows.

maybe they get good prices here or there it was done. >> it was smart to be opportunistic. >> they get to retire. it is funny the way it happened. the push back we get i had to look up fud i thought it was dirty we do fud on crypto. we do fud on tesla we have more fud fear, uncertainty and doubt. how do we instill it both ways people that like it and don't like it? we're just fud masters. >> difference from this and 2000 everybody was a big cheerleader. bidding on where you are. >> like the crypto the stock they have. half of them don't need a round lot. they are ready to tweet nonstop for us. >> we will have an opportunity to talk to the leader of the apes this is going to happen at 8:00.

trey collins who did the interview. he is joining us at 8:00 a.m i watched him. he has half a million people watching each of his youtube videos he degoes through the technical of the stock going up and down or the short squeeze dynamic we talk about the retail investor trey collins is representing the retail investor. we have questions about him about this stock rand the larger trend. >> hertz may not have been a great precedent for this to be done again and again professional investors and everybody said hertz is worthless. all of those people who did that will be very well and maybe it repeats itself maybe -- >> i spoke to trey last night. it is interesting to hear what he has to say. the interesting thing i learned

is this is -- i don't think this is a fundamental investor philosophy it is a trader philosophy. you will hear that i don't know if it will change the dynamic. >> that's why we're called fudders. gambling versus -- >> you sit around saying this makes no sense this is completely insane. >> joe said that yesterday >> why be a trader why be long? >> i'm saying i don't think that happened before. >> they think it can happen again? same with gamestop what is the rationale there? what is it for amc >> there is no rationale no, no it's a trader philosophy there is an element of that. >> you have to be nimble >> you have to be nimble

>> who is left presumably who is left >> that's the i don't know how many billions of dollars question >> we talked about that and commodity about speculation. that's the second derivative you are doubling down. >> maybe you are a nimbler >> doubling down on it speculating on the speculation bitcoin dropping this morning. i see elon found religion with the s.e.c. talk. not really more tweets. decline coming after elon musk tweeted the meme about a couple breaking up. right there. you know, i said it would be over between us if you quoted another linkn park song. a lot of popular culture references here. in the end, it didn't matter

there was a hash tag at the top. #bitcoin musk may have fallen out of love with the cryptocurrency. other cryptos include -- >> crazy you can publish an emoji. >> how much? how much does tesla still have if he breaks up with bitcoin, how much does tesla risk it's on the balance sheet. it is weird. he must know it will affect the price of bitcoin >> what is $1 billion to elon musk >> there are shareholders that own tesla. >> it's all a marketing campaign of some sort some high profile spac news. bill accm ackman's company confn to buy 10% of the universal

music company at $42 billion the deal will not result in a merger universal music will go ahead with the plan listing next quarter. vivendi is the majority owner. t t tencent is a holder as well. andrew >> i was trying to figure this out. it is the strangest spac a different. this is not a spac this is a different deal supposed to be the biggest spac in history, if you recall. the view was they were going to buy airbnb or bloomberg. instead, they have taken universal, which was going effectively go public through a direct listing like a dividend effectively, they are buying 10% of that. there's no shareholder vote required for this.

then still money leftover. $1.5 billion leftover. a stub spac. two spacs. if you are a shareholder in the current spac, you get a second bite at the apple. $1.5 billion more to go. they can buy a company valued up to $10 billion it is a unique structure there is a third component where they are giving rights to shareholders today to effectively pony up for a third merger or third investment deal in the future. over the next five years they are calling it not a spac, but a s.p.a.r., a rights deal. they are calling it the pershing square spark holdings. you get rights to that you are looking at the shares down on tontine.

people are asking what value is created here it is not officially a merger. you will be dividend out of shares of universal although universal was going to be out there publicly anyway. we'll try to dig in and maybe explain this in a graphic form of some sort >> do we have to >> we might have to. there is a lot of money about this. >> universal represents? oh, i heard of that. who else billie eilisheilish. her brother is a major s songwriter. >> queen and beatles they bought the entire bob dylan legacy a year ago. >> this is a long, tortured existence. universal. >> they have been making more money with streaming >> the question is whether you prefer to own a piece of this through tontine now at the

pre-ipo-ish or pre-listing dividend price today which is at 35 billion euro. the valuation of the company which is up from 30 billion euro when tencent was buying in whether you believe the value has been created there will be a lot of questions. i always liked this structure. you know me and spacs. the spac is to the benefit of the sponsors like bill ackman. he has the structure that align him. he is more aligned in a unique way. we will see how the market ultimately reacts when the people digest it and begin to understand it. it's complicated coming up, meme stocks like amc and what those might be missing in the market.

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news alert this morning on facebook regulators are opening an investigation into the tech giant's marketplace. probing to see if they broke eu roads over advertising data to compete with them over classified ads facebook shares down 1% this morning. it is the global minimum tax discussed today with the g7 which has put pressure on the technology shares recently if the global minimum tax of 15% is passed, that could be a big issue for the tech companies >> we will talk about it biden may be putting the corporate tax on the back burner >> in the first round. >> he can pull the rug out of the gop narrative and not compromise it is a trojan horse come on in here. no corporate taxes give me what i want.

the second one comes and we go tot 80% on reconciliation? >> there would be democrats that would not agree on that. >> maybe that is the vice president's idea i wonder what finally is the number >> it is not only to take away the republican narrative that he can't do bipartisan stuff. it is also to say we'll do what we can and deal with the caucus later. their caucus is not in order >> that's what i was saying yesterday. if manchin and cinema are not that different from republicans are saying, you might as well pretend you are bipartisan you won't get what you want anyway. >> focus on the rest of it >> what about s.a.l.t. we have josh -- that's a problem for josh josh gottheimer. they may do a 50 cap

>> i don't believe it. >> the only way i can see it happening is if they did not make a deal with the republicans and had to go back and deal with the caucus gottheimer has a pin of no s.a.l.t., no deal. if they have a broader consensus with the bipartisanship, they have to deal with the democrats. >> it is tough to explain as a democrat very tough if your entire thing is about inequality, it is tough to get rid of s.a.l.t >> they could do a higher minimum. take the whole thing off and allowing it to only help the wealthy people amc saga taking another turn stock tumbled 30% yesterday ending down 18% and sky rocketing the day before while that was happening, tesla

and the faang stocks were moving we have joe with us now. partner and cnbc contributor you are here presumably to talk tech joe, do you ever get tired of it and think maybe some people could be better served by taking a step back at the levels where we are and all of the things that are attractive in the stock market >> without question, yes unfort unfortunately, there is rampant speculation within the markets that's leading investors to turn into traders and try to find opportunity whether it is in cryptocurrency or a lot of the do it yourself stocks. you are right, joe, at some point today or early next week, we are talking about $70 wti a lot of opportunity right now in the energy sector the financial sector, goldman

sachs and jpmorgan chase and citigroup with 52-week highs the picture gets clouded as you rightly identified by this ability for rampant speculation to take hold >> people don't need to always be playing in the faang stocks should i buy here or sell here should i sell the rally? you know, would you step away from it right now and focus on some of these areas you are talking about, joe, if you had to trade >> let's think about for a second where this excitement toward trading began it began last year with the faangs it began at amazon and apple and tesla. at some point, the volatility came away and traders moved toward another direction where there was higher volatility and they could take advantage of that i think investors stay with

microsoft and investors stay with alphabet and investors stay with apple and amazon. understand they may underperform in the inflation recovery with the industry in 2020 will not out perform. when you have over 30% exposure toward technology, joe, you have to find allocation somewhere you want to look at the strength of the balance sheet and buy back and free cash generation. you find alphabet and microsoft and amazon providing that. when the investor stays allocated -- traders know they will not identify the momentum they need to take advantage of short-term pricing gains within the market >> in previous summers and i'm not talking last summer. in a normal summer, do you become less engaged are you part of the summer

dol doldrums >> joe, i picked up golf last year i'm scoring at 120 to 125. that keeps me in the office. >> we can compete. >> i'm not very good i have no desire to get out of the office i do think what's going on in the market right now is that we're awaiting earnings. we're trying to understand from corporations if this debate between reflation or inflation is real. the april earning report suggests the inflation argument does not have validity yet we're in a moment where we're sitting and waiting to hear what the earnings will look like. i think you are right. historically, markets tend to calm down during the summer. i see no reason why we would do that heading into our earnings in july. >> i can't see that white board.

a lot of people are asking what's up there today? what should we be doing? >> fully invested. fully invested. >> is that what it says? is that all -- >> focus no, no crypto. quality, joe we forgot about the word quality. that matters. >> crypto. qury -- thanks, joe. see you. >> have a good weekend >> you, too. we'll try. coming up when when return, a live report from washington as infrastructure talks hit a critical point u ay tuned yoare watching "squawk box" right here on cnbc >> announcer: this cnbc program is sponsored by cdw. people who get it. that's why we built an office obstacle course ... to prepare our people for anything. you're late well, cdw amplified services experts

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americans are confident about financial awareness, only 13% of lgbtq feel the same way. sharon epperson talks about the same-sex couple who counsels others after overcoming their money challenge. >> reporter: david and john had their first money talk about a year and a half after dating. >> we were living the broke life >> reporter: the couple had this in common. >> between the two of us, we had $51,000 in credit card dead. >> reporter: was it comforting to know you were in the same boat or alarming >> both of us came from times and places when it wasn't okay to be gay. we got into adulthood with the inferiority complex and feeling like we were not worthy aor enough we wanted to make up for that with spending. >> self confidence is an obstacle for most people particularly for people who are

not necessarily feeling as if they're accepted >> reporter: it is more than an issue of acceptance. lgbtq americans have lower income due to job discrimination or access to benefits. the covid-19 crisis hit some particularly hard. a 2020 saur survey found 25% more had household income drop by half during the pandemic compared to the straight population >> they don't have their parents in that aspect of their life they are not getting support when it comes to paying for college. they don't have parents when they buy their first home or help buying the first car. >> reporter: david and john managed to pay off the $51,000 debt in two and a half years by lower interest rates on the credit cards now they counsel others through their web site and podcast

>> how does that make you feel >> a weight off my shoulders >> reporter: the key to getting it done is finding someone you trust to talk about it if you are looking for a financial adviser who gets it, more than 1,200 certified financial planners selected lgbtq as a client focus on letsmakeaplan.org. andrew >> sharon, thanks. fascinating story. the question i ask is what resources right now are offering financial advice for the lgbtq community? >> there's guideline.com where you can specialize in lgbtq clients and sagesense. it is a free digital wellness platform tag rgeting older aduls

financial planning help, including access to advisers and attorneys. your company can be a place to start. >> sharon epperson, thank you. when we come back, congress member josh gottheimer on taxes and what you need to know abt shgt rhtowou >> announcer: executive edge is sponsored by at&t business our people and network will help keep you connected let's take care of business. we . okay, imagine this... your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, asap! so basically i can pick the right plan for each employee... yeah i should've just led with that... with at&t business... you can pick the best plan for each employee and only pay for the features they need.

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welcome back president biden and senator capito are scheduled to meet today to talk about infrastructure as the administration's self implode june 7th deadline approaches ylan mui joins us now. >> reporter: good morning. they are playing mix and match which should be combined with which spending measures to get the bipartisan support. a corporate minimum tax and $1 trillion in infrastructure spending this would be a 15% tax on the

book income of corporations with $2 billion or more 120 companies meet that flesh h threshold. top senate republican mitch mcconnell said yesterday that anything that raises taxes should be off the table. >> once you get into the tax increase area, you create enormous controversy that will not appeal to members of my party and i think it will be a hard sell to the democrats. >> reporter: now meanwhile the white house is quick to point out a minimum tax is an attempt to find common ground with republicans. it is not giving up on a corporate rate of 28%. >> absolutely not. absolutely not what the president believes is corporations can afford to pay a little bit more. that's a way that we can pay for

a range of the proposals he has put forward. >> reporter: we are not expecting a major breakthrough when hethe president talks to capito later today >> thank you, ylan we have josh gottheimer with us this morning to talk about the s.a.l.t. taxes >> good morning, becky sdp >> you are a democrat from new jersey you are focusing on the caucus 35 members would like to see s.a.l.t. reinstated? >> that's right, becky >> you wanted to debate a democrat today although you are a democrat because you take issue with the administration's policies what is it you like to see happen >> i think first, becky, as just reported, we have to keep working to find a bipartisan

solution the best way to do that, where we get the republicans, is looking at the physical infrastructure roads, bridges, rails. water and energy and broadband those are the places where the conversations i'm having in the house which is 29 democrats and 29 republicans andsenators on both sides of the aisle, i think we can get something done there. senator capito is talking to the president today. the group in the senate and house want to see a bipartisan deal get done. i think it is doable >> what comes first? the bipartisan deal with infrastructure or s.a.l.t. i don't know if the two can exist. what you hear now is the president saying we will hold off on trying to raise corporate taxes to pay for this. that means there is less money to go around to fund things you like to see with s.a.l.t >> becky, i ysee the way this moves. you likely get a bipartisan deal

done on the infrastructure side and that would be through regular order and given what the republicans are saying, we have to find other revenue raisers besides looking at tax increases and then a second package through reconciliation where you address what the president wants to address with revenue raisers and other parts of his jobs plan if we do that and the president approaches a change to the tax code, that's where i see s.a.l.t. happening it may be no changes to the tax code that first part would not -- i don't think address s.a.l.t., but the physical infrastructure piece without the tax code. >> what you describe is what joe has talked about to get a deal for both sides and go ahead and get everything else the democrats want by taking it through budget reconciliation. do youthink that is what reall plays out? >> i think if you do a bipartisan deal, that is how it

moves forward. you are not going to do a lot of the other parts the president talked about in the jobs plan in the bipartisan package it is important we get a physical and structure deal done. doable somebody like me says you have to be careful over what we spend and i'll keep a watchful eye on the revenue raiser side of it as well as other colleagues we have a tight majority in the senate and tight majority in the house with the four-seat majority regardless, it is a pretty healthy debate i'll push hard to reinstate s.a.l.t. if we do anything on the tax code in the second package. this is the best way to move forward right now. i really think we have good momentum behind it >> why is it so important to do bipartisan legislation especially with the first part what does it signal?

what does it mean? does it change the atmosphere in washington >> infrastructure is one of the things where you get democrats and republicans on the same page there are areas we agree and do something together there is an urgent need given the fact the third of the bridges in new jersey are crumbling. major roads in the country we have to get ev infrastructure out there which i think is very important. he we have water issues it is a critical deal. to your point, becky, the country needs to see we can unite and come together which what the president talked about in the state of the union. he wants -- i'm sorry, the address to congress. i think it is very important that we can show the country that democrats and republicans can come together, especially after the last months and years of great division. >> look, i thought it was not very likely at the beginning of the week

based on the administration's movement yesterday, it is likely how likely is a bipartisan deal getting done >> i'm an optimist much greater than 50% chance it gets done this way i was on the phone last night with problem solvers i talked to several senators yesterday of both parties. there's a lot of desire to do this obviously everything is in the details. that is what is going back and forth. the fact the white house is willing to move after senate republicans willing to move is a great sign people want to get this done >> if you had to pick one thing, what is the biggest sticking point right now? >> revenue raisers are tricky. that is where we are going to get into debate as we saw yesterday. in my conversations, there are plenty of ways to do that. the other stuff, there is strong support on the energy grid a bit of question of how much

should we allocate to that in terms of the roads and bridges and rails and water -- there is a lot of good consensus coming from that a willingness on both sides to give a little bit and understand we have to help everybody out here to get this done. >> good luck with that obviously you will need it it sounds like you are getting to work on it. thank you very much for your time >> i'm optimistic, becky and keep working that's the key. >> i think becky almost did it do you have a problem, j josheimer? >> it rolls off the tongue anything to combine it is good >> the next time you are on, i'll do it i'll say congress member josheimer. >> as opelong as you say no s.a.l.t.

>> call me anything. >> thanks, joe. coming up, when we return, spac news. the ceo going public after the acquisition corps. stay signed. y tuned. you are watching "squawk" on cnbc in business, it's never just another day. it's the big sale, or the big presentation. the day where everything goes right. or the one where nothing does. with comcast business

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welcome back to "squawk box. apple working on a new ipad pro and mini it is set to be released in 2022 the design change in testing for the ipad pro is a switch to a glass back from the current aluminum enclosure i'm an ipad pro user i'm looking forward to it. all right. coming up, i think i have one with a crack in it i don't know >> you have to buy a new one >> i don't want a new one. i don't think. >> look. >> hey >> someone showed up with a "squawk" shirt >> on tv i hope you set your vcr. there is one out there you are the one.

>> our viewer. you're the one one viewer. >> he needs a nielsen box. it doesn't matter. barry sternlicht's jaws corporation begins trading today. we have an interview with cano health is it like the baseball player how do you pronounce that? >> cano health. >> dr. marlow hernandez. stay tuned you are watching "squawk box" on cnbc

joining us right now is dr. marlow hernandez good morning to you. this is going to be day one post deal the stock thus far traded all over the map as you watched over the past month if not more how do you think investors should look at the company no longer as a spac but as cano >> good morning. thank you for having me back very excited today today is a very special day for us i think that investors looking at us need to look at the fundamentals our growth track record and clinical outcomes and ten-year profit

profitability. i guarantee, if you take a look, you will like what you see. >> in terms of multiples and comparables. how would you -- this is your opportunity to explain to the investor class, if you will, how to think about that. >> yeah. the way i see it is we're succeeding first and foremost because our patients are getting better care because we're solving a national problem of the low quality cost, ineffective, misaligned type care when you take a look at us and our billing plus revenue and doubling the size of the company of the last four years and we're growing 70% this year and we have already we have already increased guidance i would let your viewers, investors decide whether we're properly priced. >> in terms of comparables.

>> yes. >> i want to look at other publicly traded companies. is oak street health on your list i'm trying to look out and say to myself, here's cano over here, here's so and so over here they're trading at this multiple, therefore, cano should be trading at a similar multiple there's one live health care they're both trading, by the way, at significantly higher multiples, at least currently, depending on where you think about it depending on where you are. >> no, i would agree with you. one life, one medical, oak street and others would be comparable companies you know, we certainly do a lot of the same thing but what differentiates us is while we operate medical centers, we operate and manage hundreds of physicians and treat hundreds of thousands of patients. this year alone we grow in three distinct ways. we grow by building, buying, managing so our care model is super

charged by this core competency but you're absolutely right. those would be the right comparables to look at. >> what do you think is the biggest risk to your business right now? >> i think we've done a really good job of managing risks we've overcome hurricanes. we've helped beat a pandemic i think in the industry the sector, burgeoning sector of value-based health care, the country needs it it's time. time to get the maturity and the dip for the market the penetration for this kind of model. more networks and hospitals participating. we're seeing that. >> in terms of risk, how should we think about washington, about the models changing in terms of how some of these payments get made over time >> yeah. well, what i would say there is that medicare, government programs like medicare in the state level, these are incredibly popular and important

programs in the case of medicare it's an entitlement program paying in our whole life if anything, what washington is thinking about is expanding it, lowering the retirement age, expanding the benefits because of the success of models like medicare advantage, companies like ours, they're looking to push more of the membership, medicare beneficiary, to companies of improving track records and outcomes while improving costs. >> great to see you. we wish you a lot of luck. hope we get to see you in person soon. >> thank you, andrew appreciate you having me. when we come back, we'll keep an eye on shares of amc they're under pressure as the wild ride continues. the stock is down by 9.2%. you don't want to miss a special interview with the leader of the apes one of the sunestacht retail supporters trey collins ud?

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we'll speak to dr. scott gottleib about that and much more as the second hour of "squawk box" begins right now. good morning and welcome back to "squawk box" right here on cnbc. i'm andrew ross sorkin with becky quick and joe kernen u.s. equity futures at this hour the dow is opening down 21 points s&p 500 on the other hand looking up marginally. a point and a half nasdaq up about 15, call it -- i was about to say 16 points down a little bit there. here is what's making headlines at this hour amc entertainment ceo adam aron sitting down with trey collins on youtube to answer questions from the company's largest pool of retail investors. it offered aron unrestricted

access aron used that opportunity to persuade shareholders that allowing new shares was in the best interest of amc's future. >> if you arm us with the tool to go find value creating opportunities, we can do that. if we're not armed with this tool, you're tying our hands behind our back, you'll make it that much harder for us to land some of these attractive opportunities to benefit it. >> making the argument not only for what has just happened over the past week in terms of the shares that they did sell but for the opportunity to be able to sell some more shares in the future talk about m&a. >> the tool being cash, right? >> the tool being cash if they can sell shares to the public at these types of prices, they can use it to pay down debt he talked about all of the other

movie theater chains going out of business going bankrupt during this period and the opportunity to consolidate and buy some of them one of the theaters in l.a that company that owns that theater is on the rocks. we'd like to go buy that >> i think they covered that in popcorn, easily. the free popcorn, right? yesterday's -- i mean, even buttered popcorn even some of the kind -- have you been to a place that has ten different kinds? >> of popcorn? >> no, different popcorn. >> me either. >> you haven't >> you haven't been in a while. >> i don't -- i'm not a popcorn connoisseur. >> we're going to talk to trey collins. it's our opportunity to ask him some questions about this whole movement, what it means not just to amc but the broader context of policy makers what gary gensler may think.

i think there's a lot going on here. >> what do we know about him >> we know that he owns a bunch of shares. he's also been -- >> but his background. is there a reason we should -- i mean, i know he's got influence. >> what he's got million people watching these youtube videos. he's been doing this for months. adam aaron, the ceo of the company has done two of these live streams effectively with him over the past couple months. interestingly the ceo of amc clearly recognized this one individual has this remarkable influence over this audience he's going directly to them. >> his shareholders have changed rapidly. so in order to reach them, you do have to do something different. >> all right okay just wondering not everything is gospel that comes out of his mouth, right? you remember, it's warhol who

said that. sooner or later everybody is going to have at least 15 minutes, right >> everybody's got a moment. >> it became true with the internet, twitter. >> came true 30 years ago for me it may come true for you some day. >> wall street and the nation closely watching the jobs report due in about 90 minutes for an indication of whether the strength of the jobs rebound is as strong as the economic rebound. steve liesman joins us now with more i'm wondering, it's ancient history, steve, a month ago that crazy number that we got that blew everyone's mind do we get it back? is -- is this going to be a much better number? give me what your estimate is. if it's bad, are you going to be quoting herman melville again? >> no, i've done quite as much quoting of herman melville as i

will do, joe may is the rubber match. we had a weak payroll number in april. wall street looking for 671,000 new jobs unemployment rate expected to dip to 5.9, 6.1% the street, neither have i, done a good job at guessing the labor market i want to show you these numbers, these atrocious numbers. the street would miss by plus or minus 59,000 jobs. since march of 2020 the miss is averaging 1.3 million. the past three months it's come down to a still terrible 400,000 jobs so in the course of the virus, the setting and the relaxing of social distancing rules, the impact of those big jobless benefits, school reopenings, closings, other changes to the economy. hey, maybe the jobs are where the workers are not. it's beyond wall street's predictive power

this is shift work data through ukg. the last two months showing the big march number and the weaker report zooming in on those last two numbers there. it sees modest job growth in may. home base has been useful. it sees good gains this month compared to april. that's backed up by the big adp report we'll see which ones have it right. the jobless benefits and other factors keep workers at home was april an outlier the fed can mean there's a long way to go. joe, i think it's going to be a relatively strong report that's my expectation. my friend louie who is a serial entrepreneur and restauranteur, he's having a hard time. >> louie >> louie, he's a great guy. >> is he louie louie or just louie? are we allowed -- you know louie louie was banned, steve? i don't know what they say. >> i do know, yes.

>> so this is just louie louie but he's -- does he have a last name? we don't need it but he does -- >> he does he does but i don't know if he wants me to talk about him publically we went to high school together. het he's opened up restaurants since he left school and he's got a bunch of successful operations and trying to get reopened. >> i don't remember neck really flares up when you're talking to rick the pain in your neck? is that when it rears its ugly head >> those are the hairs on the back of my head that stand up, joe. >> we may have another -- that's episodic you know how much i love it and hopefully we'll be able to do some -- you know, it's the world, steve it's a bifurcated world and we need both sides, i think. >> steve's looking forward to it. >> you fulment it.

>> a facilitator maybe better >> perhaps yes, that would be a more -- a kinder word, yes, indeed >> another "f" word. >> thank you, joe. >> always a pleasure, right? we'll see ya. >> always a pleasure when we come back, the amc saga continues this morning. the stock now down premarket about 6.7% it was down by about 20% yesterday. we're going to talk about meme stocks and retail investors with think or swim's founder tom sasnov after the break before we head to the break, let's take a quick check on the markets this morning we're awaiting the jobs number dow down 18 points, nasdaq up by 17, s&p up by 2. "squawk box" will be right back.

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welcome back, everybody. apple is working on wireless charging for the ipad. they may include reverse wireless charging which will allow the ipad to be a charging point. vindi said it's in talks regarding a sale of a 10% stake of its universal music group

if it closes the deal would be the largest spac deal and value umg at $42 million the spac said it will be distributing the universal music shares to its shareholders later in the year. coming up, several news outlets obtaining emails that dr. anthony fauci sent and received early on in the pandemic what the emails reveal and what they don't is coming up. check out oil this morning wti up nearly 70 -- i'm sorry, up over 70 or close to it, ice is wti is 69.05 70 the operative number. what's it mean for our wallets not good "squawk box" will be right back. time now for today's aflac trivia question. what company opened up an area on its corporate campus filled with over 400 species of plants from around the world for employees to collaborate and

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with over 4 species of plants from around the world for employees to collaborate and innovate the answer, amazon the area, known as the sphere, opened in 2018 you know who the real king is the shareholder is king. you are fully in charge. that's why we're not asking you for -- to authorize 500 million shares we're asking you to vote for 25 million shares because we don't think you'd vote to approve 500 million shares we think you'd vote to approve 25 million shares. and that's why we take what you think, we take what you have to say very carefully and we give a lot of thought to what you guys think. and it's for a simple reason, like we exist in the capitalistic free market system. >> that was amc ceo adam aron

talking to trey collins, host of trey's trades, a site on youtube talking about amc and adam aron appealing to shareholders to approve even more. who's driving the price action in amc's wild ride joining us is tom sasnov the founder of think or swim, one of the first online retail brokerages sold to t.d. ameritrade. founder and co-owner of tasty trade. how much of this price action we're seeing in amc is the retail investor and how much do you think is the institutional investor effectively riding the wave or playing the retail investor >> thanks for having me on i think that the lead, kind of the -- out in front of this is the retail investor but i think there's a lot of prop firms and

market making firms that are trying to get ahead of it. they don't want another gamestop situation. i think it's a combination it's definitely the retail investor leading >> we're going to talk to trey in a little bit. >> okay. >> whether you think the retail investor community, many of whom are making a lot of money doing this at the moment, of course if they sell, fully appreciate and understand all the dynamics at play here. >> i don't know if they -- i think that's a tough one because i think what they appreciate is -- you're seeing the transformational trend and what they appreciate is the incredibly high volatility which leads to huge expected moves so the reason that amc is so -- you know, is in play right now, so popular, is because with 300% volatility in the july options the expected move is a double.

either you're going to get the stock an expected move plus or minus $50. if you have a $50 stock with a $50 expected move and you don't think it's going to zero, it's a risk/reward. that's why i think there's so much interest. >> there's a lot of people who look at this and say this is not investing, we should not be encouraging this this is speculation. >> sure. >> this is a trading game. there's big public policy about what all of this means how do you come down on all of that >> i'm actually a huge fan of what's happening and huge believer in what's happening this is good what you're seeing is an entire generation become engaged. instead of waiting until they're 50 or 60, they're doing it when they're 22 or 23 this is a generational move. amc has nothing to do with it. think of amc as another asset.

think of it as a digital or a crypto think of it as the same thing. people are looking for speculation. speculation is what turns them on i think the opportunity to participate in something speculative that you think you own, i think that's a really good thing i think it's good for engagement i think it's good for the markets and good for the future of finance. >> maybe it's been drilled into me, perhaps wrongly, but over the last decade especially in a post financial crisis world, there was always this view of protect the retail investor, effectively at all costs if possible speculation is bad gambling is bad. fundamental investing is the right way to go about it that's what's been drilled into the public not just drilled into the public the public effectively i thought was screaming for that maybe now not so much. >> itactually turned out to be listen, a lot of us were wrong i've been building technology

now for retail investors for 20 years and i thought i saw this transition coming from passive to active but i didn't realize the velocity of the move, the magnitude of the move as we've witnessed through, you know, robinhood, coinbase and things like that. to look back at that and to look at what's happening and to think in any way, shape or form that it's bad or that speculation is bad or that, you know, getting into kind of the -- let's call it the fringes or let's call it nonstrategic finance, speculative finance, i think it's actually really good for the future of finance. it's really good for the future of what you do and what i do. >> tom, that may be, but i also wonder when people lose, if people lose, it's very rare that people when they lose, that they turn around and blame themselves very, very rare. by the way, even in the financial crisis, i'll say

something relatively controversial. people during the financial crisis who took out loans that they shouldn't have taken out didn't typically blame themselves for taking out the loans, they blamed the banks for loaning them the money. >> that's true. >> i completely agree. >> i wonder if, in fact, these things go wrong whether there's going to be a lot of people finger pointing at other people and not themselves >> listen, i completely agree. a lot of us have thought this way for decades. i'll give you an example when i was 23 years old i wanted to trade options i had to pack up my car and move to chicago to become a member of the exchange almost 40 years ago. the world's changed now. you can speculate in anything on your phone and you can participate in -- you know, i mean, we're talking about assets we're really talking about assets that are highly speculative but i think, again, it is a very positive step. >> right. >> i think people need to take finance into their own hands and this is just the first step. remember, we're in our infancy

this transition is absolutely in its infancy and i think this is the first step yeah, gamestop and amc and all the different cryptos and everything else that's out there, i mean, listen, if you're a young investor, you'd rather trade cardano than tesla or ibm. those don't turn you on. 25% volatility doesn't get you excited. 150 to 350% does >> you know, tom, i understood all of that and agree 100% it's great to have younger people getting involved, whatever that may be, investing on things. >> sure. >> what we've seen, we had joe moglia on talking about the day traders from the late '90s, early 2000s, when they got burned, when momentum changed, when there was nothing but losses on the screen, a lot of them got driven away that's damaging. if you drive out a generation because the momentum turns, then you're talking about people you're hurting that entire

generation of ever being able to build wealth. >> there is no comparison between the day traders -- i love joe no comparison between the day traders of 1999 and 2000 and the first transition into online trading than what we're seeing today. it is a completely different world. >> what's different? >> well, the technology. the technology the products the markets. the costs. remember, back then you basically got chopped alive and the commissions and the fees and the quality of the technology was incredibly poor. today you're looking at amazing -- we offer customers high frequency technology. high frequency technology, virtually no fees. it's the greatest marketplace in the world to learn how to take risk and make decisions. >> tom, how should business leaders, adam aron is a good example, think about this? in part because when you think

about speculation there's a period here, that's what speculation is ultimately about, but now you have ceos and business leaders who effectively can take advantage of these moments, oftentimes perhaps rightly to help the long-term interests of their company and they're not -- if their fiduciary obligation is there to the current shareholder they may be there a day, a week, two weeks. they have to think about the longer term so you have a situation where effectively they're selling into the greater fool theory. is that right? >> they have to. listen i keep speaking about volatility here what it is, it's just a measure of expected move if you're running amc and you've been given this essentially gift horse and you have the ability to float more stock, you have to do it. that's what's in the best interests of your company, best interests ultimately of your long-term shareholders and

everything else. that's taking advantage of opportunity. that's what good ceos do. >> tom, how do you know that -- i78, in hindsight it was the housing, now it's obvious it was the housing bubble how do you know this isn't a big fed-induced mania and we look back on this as a once in a generation phenomenon with a major policy mistake by central bankers, especially in this country, and that's all -- none of this would be happening without it that just pulls the rug out of the whole idea that it's a learning experience, good for long-term fundamentals and everything else. it's all fed-induced and it's a policy mistake. >> i agree with you, but what if it's not what if it's -- what if it's just the maturation process of really liquid -- liquid financial markets that are becoming stable? i'm not sitting here pounding the table as a bull or anything

like that. you know, in fact, i'm short the market right now, but when i look around and i see what's happening, this is -- it's different than 1999. it's different than 2008 the number of players today and the amount of capital today is massive compared to what we saw. you know, long-term capital management in 1998 almost took us down and it was a $2 billion -- you know, it was a $2 billion trade. today we're talking about multi-trillion dollar trades. >> i have to stop you. you said you were short the market and we have about 30 seconds left make the case. you say you're short the overall market short parts of the market? what's your view and by the way, as you know, there's a lot of retail investors who believe shorting the market is immoral and shouldn't even be allowed. >> that's absolutely ridiculous. that's beyond ridiculous we don't have to even go there but i'm a trader and so, i mean, i run a couple companies but at the same time i always

considered myself a trader and as a trader i like strategies where you're essentially short -- you know, short the market and short some premium. i like selling volatility. for me personally i prefer to be short the market and lean a little bit short and lean a little bit short volatility. it's just a strategy. >> fascinating tom, appreciate you being with us helping break this down. a lot of interesting perspectives and the debate continues. >> thanks for having me. >> talk again very, very soon. we should mention a programming note, don't miss a special coming up at the top of the hour with trey collins. the host of trey's trades and the leader of the amc apes also, still to come on "squawk box" this morning, the ceo of manpowergroup will talk about the massive talent shortage and the struggle to find workers in high demand areas. plus, an update on the latest high demand with dr.

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shows the global talent shortage is at a 15-year high for more on this let's welcome manpowergroup's chairman and ceo. jonas prising. this is a serious issue across the board. i think almost 50% of small businesses had trouble trying to find work jers in the month of may. this is a global problem, too. >> that's right, becky it is something we're seeing across the board as the global recovery starts to take hold and gain in momentum at this point, the demand for workers outstrips the supply, and that's true on a global basis and here in the u.s. as well. >> what is the problem if this goes back 15 years, i was trying to figure out what happened 15 years ago that led to such a shortage of workers. when it comes to a small business these are the highest

numbers ever. >> that's right, becky everything related to this pandemic is unprecedented. just about last year when we talked about the numbers for may that are going to be published in a few minutes, our unemployment rate was 13.3% exactly a year ago in the month of may today, you know, we're expecting somewhere around 6, 5.9%, something like that. recovery has been very quick the downturn, we lost more jobs in three months of the pandemic -- on the first months of the pandemic than we lost in the first two years of the global recession with that comes of course a recovery of the labor market that's unusual as well the reasons the shortage is so strong is the recovery is bigger than anticipated vaccinations are going up. that means a lot of activities under lockdowns are coming back very quickly and workers are

still having issues around health care concerns, child care, programs intended to mitigate the very significant downturn are also having a lingering effect and breaking their desire to get back into the work force. >> do you think this problem solves itself to some extent in the next few months as we get through the unemployment benefits, the additional unemployment benefits as schools reopen in the fall, as maybe child care issues aren't such a problem anymore and as people feel more comfortable as a greater portion of the population gets vaccinated >> that's right. this is an anomaly and will work itself out by the fall we should be back to seeing behavior in labor markets that will be consistent with what we would be expecting so we could predict what the evolution is going to be it's going to be uneven until then we would expect more labor to

improve gradually and in uneven ways some of the states as you know in the u.s. are going to curtail their programs the extra unemployment benefits, we think that will have a positive impact as well. so this is a temporary effect that will work itself out over the coming months. >> so is this just a big never mind or is this something workers need to be doing not workers, i should say, employers. >> well, employers are doing a lot of things differently. you've seen new wage limits and many employers are working on one-time hiring bonuses, referral schemes to encourage friends and family to get engaged with them as an employer and of course a lot of efforts in terms of retaining the workers that they have so that they don't go to other employers that are really scrambling to find new workers and that's what you're seeing happening now. but a lot of work and especially

around one-time bonuses, whether it's to get hired or referral bonuses. >> jonas, thank you very much. good to see you this morning. >> good to see you as well. coming up, we'll have a quick check on the markets and then dr. scott gottleib joins us wonder if there never was a watergate. there could be a faucigate what would we call things if there was no watergate. >> no gate >> bridgegate. >> everything is a gate. faucigate. reminder, you can always watch p. live on the go on the cnbc wee 'rcoming right back. it's hard to hope, hard to cope with crisis. so we get to work. we mend, fighting for every person in every neighborhood; we, the coming of the common good.

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in moderation, they are worth it we have so many donuts this year that have been sent to us, folks from all over the new york city

area a couple shout outs here cora, these are gorgeous donuts. this was a small family-owned company in queens built out of the pandemic and they have done something, the infatuation loves these donuts we're going to eat those we have stuff from the donut pub. danny myers. stuff from daily provisions. we don't have dunkin' donuts today which actually maybe we classed up. >> krispy reme. >> we don't have the four pound -- >> these are going to be harder to eat. >> what about the bacon donuts remember the four pound bacon donuts >> i think we'll start here. >> we'll start here. >> we should do it like dave portnoy does it and grade the donuts you know like the pizza. >> he does pizza. >> pizza >> one to ten? >> one to ten. i'm going to start low because i don't know where the grade should be. >> right. >> start this one at a 7.2

>> what's it taste like? >> very light. >> is there a flavor >> you like light. >> i like light. very well done >> oh, my god. 7.2 here >> you found it? >> there >> they got one of my -- is this -- this is one of those really heavy cronut. >> it's got like bacon, maple syrup. >> love that >> anyway, we'll be eating these for the rest of the program. happy donut day, everybody go out and get a donut if you have a vaccine, as you know, free donut at krispy kreme. you can walk into a krispy kreme, show your vaccination card becky is looking at me with such disgust. >> i can't wait to see it. inbee going to eat the whol thg fore we go to break? >> i am. it's so good >> look at these you do. round the clock fraud protection. one of the many things you can expect when you're with amex.

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they make it cleaner, healthier, and more connected. it's what we build that keeps things moving forward. so with every turn, we'll keep building a world that works. which shows will you be getting into tonight? how 'bout all of them. netflix. 'cause xfinity gets you really into your shows. when one burns for someone who does not feel the same. daphne, let's switch. from live tv to sports on the go. felix at the finish! you can even watch your dvr from anywhere. okay, that's just showing off. you get all of this on x1. so go on, get really into your shows. you need a breath mint. xfinity. it's a way better way to watch.

welcome back to "squawk box. we're on the second donut now. this one is from whole provisions with a cinnamon glaze. i'm about to finish it right now. >> that's no joke. you didn't throw half of it away. >> no, we're on number two keep a count going, i'm sure excuse me. dow looking like it's going to open down 30 points. nasdaq down 15

the s&p 500 up about 2 points. check out some of the meme stocks this morning. we're going to show you what's going on there amc down we're going to talk to trey in a minute, one of the leaders of the amc apes then take a look at cryptocurrency under pressure this morning this after elon musk tweeting what looked like a breakup meme. one of those heart emojis with a break in between looking at bitcoin down close to 6% down 36,000. in our headlines this morning, bob iger has sold almost $100 million in disney shares cutting the number of shares that he owns directly by 50%. a regulatory filing shows he unloaded more than 550,000 shares at an average price of $179.21 on june 1st. he stepped down in 2020 and is set to retire next year. his stock sale was an effort to diversify his portfolio. disney shares have soared more than 600% since iger took over as ceo back in october of 2005

this plays into what you heard from barry dillner >> the chosen successor over the past several months in certain instances has sort of said, you know, you stay over here and maybe that's what happens as you get closer to retirement it has apparently caused some friction >> potentially a loss of faith they say it was to diversify his portfolio. >> right don't know loss of faith in chapek. is that him saying i'm not a fan? i don't know >> a chunk of change i'm sure he could have sold even more >> national institute dr. fauci saying some of the emails released earlier by various news outlets were taken out of

context. joining us now, dr. scott gottleib, former fda commissioner, cnbc contributor he serves on the boards of pfizer and illumina. his new book, uncontrolled spread why covid-19 crushed us and how we can defeat the next pandemic is out in september. i want to look at it overall now in hindsight with the benefit of 20/20 hindsight. you're an informed observer. i'm not saying you were there in the trenches and can answer all of these questions, but in your mind as an informed observer at this point, what do you think the likelihood is it was escaped from the wuhan lab versus the wet market what is your -- is it 50%? 80%? what do you think? how do you handicap that >> probably handicap it higher for a natural origin, but that shunned be reassuring. if you were going to handicap it 60/40, 80/20 that's by no means

reassuring at the end of the day what we're going to end up with unless we get lucky and we find the zoo not particular source, the intermediate source which proves it comes out of nature or we have whistle blowers that come forward that proves it comes out of a lab, i think what we're going to end up with is unsatisfying it's an assessment that assigns probabilities to each scenario that's going to be important because if we assess that there's a reasonable possibility that this came out of the lab and the chinese government has concealed it, that's going to change how we embrace this mission going forward. we'll have to get our tools and national security much more engaged in surveillance. we'll have to have better oversight and security we'll have to push more research into higher security labs. remember, the chinese were doing the research with the coronaviruses in bsl 2 medium security labs, not the high bsl 4 security labs. we're going to have to change how we approach these things i don't think we're going to end up with a definitive answer

absent something that is a lucky break. if the chinese -- if this did come out of a lab, someone in the chinese government knows that they've had ample opportunity to, you know, make that admission to the world and provide that evidence and try to engage the global community making sure this doesn't happen again. the fact that they haven't done it by now is a pretty strong suggestion that they won't. >> well, i know i'm not going to get the tape of cable fodder from you that we're hearing a lot of other places. i would only say that i guess it doesn't really matter right now whether it definitively came from the lab the reaction and the coverage and the way that certain agencies responded is very troubling because the most important thing we're probably going to need to do is try to prevent the next one. >> yeah. >> if there was even a 5% chance it came out of wet -- start with this, doctor

it's in a city called wuhan. we know there's a bat lab that may have been doing some gainer function research on these viruses. now we know three people got sick in november of 2019 and needed to be hospitalized and to make the leap that it absolutely came from the wet market when it's quacking, walking, you know squatting like a duck and everything looks like a duck just to arbitrarily demonize anyone or any person or any agency or any media outlet that even ipd mated it could come from a lab, something was going on there where was the w.h.o. are they doing china's bidding again? where were our people in this country that we should have been at least getting our ears up to prevent the next one that it might have come from the lab why was there pressure to bury this >> yeah, look, a year ago most people would have said the probability this came out of a lab was 1% or less. >> why >> that was based on what we knew at the time

because a lot of virologists based that on the sequence on the strain alone they surmised which is still accurate that all of the genetic diversity emanated from nature you have to look at that in the context of what we know now. looking at the sequence information is the fact that a year has gone by, this has been thoroughly investigated. we haven't accrued any new evidence suggesting that it came out of a natural origin but we have accrued some additional circumstantial evidence that it could potentially have come out of a lab including china's own obfuscation which enters into this picture at this point all of that increases this possibility that it comes out of a lab. the assessment is different than the assessment a year ago. it's no longer a 1% probability or less. it merits further investigation because it does affect how we go forward. the final point on this is i think a lot in the scientific community are having a hard time

figuring this came out of a lab. many scientists work with scientists in china who are well intentioned and do good work they can't understand why if this happened scientists who would know about it wouldn't come forward coming forward in china is a different prospect than what happened in the united states. they faced significant sanction so being a whistle-blower in china with the chinese government isn't quite as straightforward as being a whistle-blower in the united states >> do you -- >> the people that we now know were hospitalized working in the lab, do you think dr. fauci, because he did have, you know, a research relationship with that, do you think he was aware a year ago of that situation, that three people had been sickened in the lab a lot of the dogma and the dogmatic statements made by him about this, i don't know how you could have made those if you knew, a, that it was in wuhan.

b, that they were a function of research c, that three people got sick and had to be hospitalized in that lab would you have been as strident as them from the possibility of it at that time if you knew people had gotten sick >> i don't know when tony might have known those facts he has a security clearance and gets briefed i'm not sure what happened in november was known in november some of this information may have been accrued on a look back look, tony was getting briefed -- dr. fauci was getting briefed by a lot of folks in the scientific community who are virologists looking at these statements they didn't make a bad judgment. they looked at the sequence initially. they had some concerns about it. on deeper analysis they thought the genetic diversity could have been derived from nature there was nothing highly unusual about it there are things that raise a lot of questions they surmise that most of the diversity if not all of the diversity could have been

derived from nature. that's the community he comes out of those are his peers. those are the people who inform his judgments. >> i saw him respond to a question and the question was about whether the virus could have escaped inadvertently by accident from the lab. he answered the question with saying to imply this was a bioweapon released on purpose -- he shifted the argument to a straw man that everyone would agree with to not answer the obvious question about, you know, why the agencies that are there for the sole reason of trying to protect us the next time almost -- you know, almost buried this story and i don't know why i'm still trying to figure out why. the w.h.o. i understand. even people here in this country. you've seen some of the emails don't open the can of worms. you saw that one, right? >> i would challenge your

statement that nia is an agency designed to protect us from the next pandemic. they do research to provide counter measures to protect us >> it's very important that we know -- >> our intelligence agencies, right. we need to get -- we need to get our national security agencies engaged in this mission. we need to get our foreign intelligence agencies engaged. historically they haven't been engaged the way they need to be. this would be perceived and handled by the public health authority and the cdc. we know they aren't equipped to provide the kind of surveillance and information gathering that need to protect ourselves. it's not the niaad they sponsor research. some of that research, by the way, some we sponsor is to do capacity building in places where we have questions about the activities that are going on and perhaps to get a look. i don't know that for a fact but it would seem plausible that if

we want to get a look at what's going on inside labs and get better alignment so we better understand, we will have research the nia i.d. is not an intelligence gathering agency. we need to get the tools engaged. >> getting our intelligence agencies involved in this, what you're saying, mirrors what we've heard from the biden administration getting our intelligence agencies involved with the cyber attacks and ransomware are we equipped for that just as somebody in government, have we spent enough on the intelligence agencies making sure they're going to be up to the tasks and additional tasks we're now asking of them >> well, look, the threat's changing the threat landscape is changing historically this isn't a consequence of the fact that the intelligence agencies weren't interested in the public health mission. historically the public health community oftentimes fought to keep the intelligence agencies out of their work. they were worried that every person with a white coat would

be perceived to be a spy we need to change that ethos. >> it's a wide range of opinions, isn't it we need to sift through it and be very careful, obviously you have totally naturally occurring and a bioweapon and somewhere in the middle i guess the truth lies and we may never know. >> or an accident. an accident. >> i'm saying -- yeah, i'm saying those are the two extremes. >> the range, yes. >> thank you, doctor. >> thanks a lot. >> check out scott's new book "uncontrolled spread, why covid-19 crushed us and how we can defeat in the next pandemic." "squawk" will be right back.

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good morning plenty of work still ahead for us the jobs report just a half hour away will the numbers show a higher surge? bill ackman may be about to fill out his blank check. close to another high profile deal for a slice of universal music. we've got the details. and it's a mad house the leader of the amc apes sat down with the ceo adam aron. now he's talking to us as the stock is on the move the final hour of "squawk box" begins right now

>> you're a maniac you blew it up! good morning and welcome to "squawk box" here on cnbc. it's a very important day. at 8:30 andrew is going to have another donut. it is national donut day. >> and friday and national donut day. >> jobs friday. >> i was talking about it was a very important day, national donut day. you're right that probably is more important. >> jobs. someone's got to make the donuts. >> that one you like -- >> my favorite at the moment which i'm going to give a 9 to is the cinnamon daily provisions. >> did you have the bacon? >> i haven't. >> throw me that. >> bingo

>> have that either there is bacon or there's something that is damn close to bacon. >> my judging, i'm going on -- i've decided i like the lighter donuts rather than the caky donut. if you're a caky donut person, that's a different -- >> i like the one that are airy. normal glazed. that's because you can eat nine of those, which you have i want to try one of those -- maybe a small one. >> this has bacon in it? >> yes. >> try it. >> maple bacon flavor. >> wow >> it's amazing that -- >> that -- >> it's not amazing. bacon ice cream is my favorite. >> who makes this? >> i'm not sure. that was a special order >> this is something >> where did we get that huh? look at the bag. what's the bag say >> bag doesn't say anything. >> they have to get credit for this this is a 9.2. >> really? >> what was the cinnamon. >> 9. >> that was only a 9 that's better than the cinnamon.

>> this is amazing. >> maple and -- >> we're moving along here i'm joe kernen along with becky quick and andrew ross sorkin i'll do your read. u.s. equities at this hour are flat that's the story of the day. >> we'll see what happens at 8:30. >> nasdaq is up after a tough session yesterday. treasury yields also haven't been -- how good is tepfer he has a gazillion joe moglia. >> not a real word. >> not a real word something like that, a gazillion dollars. the 10-year stayed in that range. at about 1 -- what are we today -- >> two months -- >> $70 oil so someone -- is it real or is it -- is it real or is it the fed? >> that's right. let's get you caught up on other stories that investors will be talking about today. first up, bitcoin tumbling after a tweet from elon musk it's a meme if you look at this

tweet about a couple breaking up along with the hashtag bitcoin and a broken heart emoji dogecoin is falling on this tweet. you see dogecoin down 8.6% bit down down by 5.75% eu is looking into an investigation into facebook's marketplace. they'll probe whether they broke the rules to compete with advertisers in classified ads. regeneron getting fda approval for the covid-19 antibody drug. whether than an iv infusion, this will make the drug more accessible for more patients to use. let's get back to the markets. mike santoli joins us with a look at what he's watching taking a guess at this, the jobs number was quite a bit weaker

than last time around. i don't know what you think that might mean this time around for the action today. >> well, it means, becky, suspense is definitely building. the adp number gave us a sense we should lean to the high side for some makeup or catchup in the jobs data. that maybe is where i think you'd have to lay the probabilities. the data have been very, very noisy. the s&p 500 has a picture of waiting for something. waiting for something big to happen and change the overall complexion of things you see about 7 weeks now we've been in this extremely tight race, 3% from high to low. yesterday a little bit of a wobble it felt more than it was because we've been incredibly static since mid april, that had the sense it was going to change not really why is it going on mostly it is continued rotation. we repriced for better growth. you had the megacap growth stocks amazon and apple shares compared to the s&p 500 since september

1st of last year first of all, amazon and apple both look like they're trading in kind of lock step here even though very different businesses both stocks yesterday slipped back below their 200 day moving average. if you will, s&p managing to make progress in that time largely it's because of the cyclicals, the banks and industrials. these two stocks, 9.5% of the s&p. now they are becquereltive to september. it's been tough to carry that weight we'll see if this is a continuation of something that's going to happen after the jobs number take a look very specifically at the sector a lot of cyclical charts look like this. kelly services and manpower. by that, huge gains especially from october through march or so and then stop, flatten out, consolidate, watch and weight. the 10-yield treasury and what the bank stocks and industrials look like. clearly we've positioned for

better macro numbers but we're waiting for confirmation or maybe we've priced in a lot of what's to come this spring in terms of a little bit of a boom time rebound >> okay. mike, thank you for that meantime, we're going to talk a little amc right now check out shares of amc. the stock of the week for sure and it's on the move once again this morning looking at it down about 8%. we're now at 46.80 amc's ceo adam aron making its case to investors the amc apes last night on youtube. >> you know who the real king is the shareholder is king. you are fully in charge. that's why we're not asking you for -- to authorize 500 million shares, we're asking you to authorize and vote for 25 million shares because we don't think you'd vote to approve 500 million shares we think you might vote to approve 25 million shares. that's why we take what you

think, we take what you have to say very carefully and we give a lot of thought to what you guys think. it's for a simple reason we exist in the capitalistic free market system. >> joining us is maybe what could be described as the leader of the amc apes, trey's trades host trey collins. good to see you this morning you've been early and thus far on all of this why hundreds of thousands of people are watching your videos daily. i was looking at some of the numbers on your latest post which is over half a million millions of people collectively have been watching this. i want to talk to you about what's happening here, the technicals and what you're seeing and what you're saying. i also want to talk about some of the larger public policy issues around trading, investing, speculation and the like before we get into any of that, give us a little bit of your background who are you? >> andrew, first off

i'd like to say thank you obviously for letting me come on the show here. i'd like to make one small correction to the headline i don't consider myself as a leader of the april. as a retailer investor, i consider myself an april if you own 10 shares, 100 shares, 1,000 shares, 10,000 shares, you're the april that's the huge embodiment of the movement my background in investing, i'm a 23-year-old guy, turn 24 in june i did not start too long ago i take pride in that because i think it shows retail investors, the little guy, quote unquote, can come pretty far in not a long period of time. i work an 8 to 5 government facilitated job. just a regular joe on the street can learn this stuff about stocks and make money doing so, i think it means anybody can i came into this and learned what i had to know before amc started. here we are now. >> there's a lot of people, trey, who look at this and say is this investing or

speculation? is this gambling what do you think? >> i think amc as it sits now is 15% fundamentals, 85% technicals and data when i say fundamentals are important is because back in january when the short squeeze thesis began, the shorts had a pretty decent case amc was fundamentally pretty weak the bankruptcy was on the table. with each passing day, each passing month they've continued to generate cash, $587 million the short thesis weakens that's where fundamentals come into play. the technicals come into play when you consider the algorithmic trading, the failure to deliver when call options run from up the money to in the money. there is insane trading taking place and lots of liquidity. it can drive volatility in pricing. for a short squeeze to happen, have you to have short interest. the last i checked this morning was 17.5% of the free flow

now you can't have a short squeeze without shorts covering, that's as simple as it is. which is why i think there's firmly more money on the table there is risk involved with every sort of trade not based on fundamentals alone but there's money to be made on momentum that's what this is right now. the momentum play. it's a movement. a story. i think the apes are trying to tell a story about why they think they deserve to be heard, to make money. because the short sellers have been betting against retail investors and it seems like the retail investor has the upper hand. >> let me ask you about that because at some point the music is going to stop it typically does in almost every case and so when people talk about speculation, when they talk about momentum, they often say that it's a bit of a greater fool theory. you can win now but somebody's going to lose on the other end and i wonder what you tell the other retail investors about this i know this is a story, we talk

about diamond hands, paper hands. some people are doing this because they're trying to make money. others say as you just described that they're doing this as part of a larger movement if it is a movement, what is it trying to prove? >> the movement is trying to prove that the gun line, the casinofication aspect of the investing. this is a message i've preached for myself you only invest in the stock market what you're willing to lose amc i view it as money that does not exist and i might never see again. i'm absolutely okay with that. if you view amc stock that way, you're walking away okay once you take the emotional mind set away, you can come into this and truly rest easy knowing that wherever this is going to go is where you want to bring it individually as a person

you get to sell, you get to buy, whatever you want. that decision is ultimately up to you i think the message with all that being said is to the short seller saying we see some of the algorithmic trading, we see some of this going on, some of the finra fines and reports going on, talking about mal reporting on different data and short interests. they see that and want to speak out about it individually as retail investors, as the apes. >> i get that and i appreciate it let me push back on one piece of this which is there is a -- there is something happening here which is a divorce from reality in terms of the fundamentals of the company, of the business in fact, yesterday adam aron and amc said that effectively when they sold their shares to the public, by the way, who have given them now potentially a new lease on life, we'll see in terms of the cash that we're raising. for the company, it's not a game, right? it's not a casinofication or a

speculation, it's a business with employees how do you think about that piece of this? >> you know, i think adam aron -- i get a lot of flak for this i get called a 23-year-old kid for trusting what a ceo does i'll take that heat every time i believe in history, trends and facts. the facts are adam aron is setting the bar in ceos reaching out to retail investors and caring about what they're asking for, what they're looking for, what they care about as well as watching the long term health of the company. they've raised $21 billion it's going to help set them up for the next 1, 2, 5 different years. they can obtain other theaters and do some great long-term success. with this short term, you know, momentum trading, there inevitably will be people who don't invest in amc long term.

is that right now? i don't think so i think most of the retail investors of the apes understand this is not the true fundamental value of amc >> what do you think the real value -- what do you think the real value of amc is you look at some of their competitors that are publicly traded companies you could look at the bonds which are trading at a pretty steep discount. >> right so the market cap for amc if i remember correctly was just over $10 billion not too long ago you look at companies like cinemarc trading at $1 billion you look a couple quarters down the road we get more quarantine restrictions to be lifted, the revenue starts rolling back in for amc. two things are going to start happening. you have a lot of these movies coming out which are going to roll in great revenue and you have a new factor that can't be accounted for and quantified, which is social sentiment for

the company themselves with all of that being said, i truly do believe the fundamental value will be in the 20 to $25 range in the end of 2021 when they're fully back at capacity, bringing in that cash flow and that sort of measure >> that's half of where it is today. >> right. >> what do you tell your -- if you're saying that the value of it's half of what it is today, what do you tell your followers who are buying it today who eventually at some point if it's going to go down, right? >> fundamental value is different than momentum trading. just because -- this is a fact the market is -- the stock market tells you exactly what every single security in the market is worth at that given moment if there's somebody out there willing to buy amc stock trading at $47, somebody is willing to

buy it at $47, that means it's worth $47 for somebody the momentum trading aspect even if it doesn't necessarily reflect on the current earnings or future projected earnings, it doesn't mean there's not money to be made i know there are people who made money out there. i heard about people who have made money you can take advantage of momentum trading this is a new trend in investing. >> i think the question ima asking, am i supposed to be concerned? people have talked about these types of things over the years as pump and dump schemes where people talk up a stock trey, you seem to know a lot about what's going on. there's a lot of people online trading this right now that do understand and understand all of the dynamics but then there seems to be a lot of people who don't. by the way, people make mistakes along the way. yesterday i noticed you had said at one point that you thought when amc first put out the announcement about the 11.5 million shares, you know, you had put out a tweet telling

everybody, no, no, no, that's old news from a different -- it's from an old filing and that proved to be wrong. so i just -- i ask you that because i think that there are people who are listening to you in terms of how you think about your own responsibility to all of the other apes. >> right i appreciate you that's totally okay. i hold that weight very, very heavily and being careful about the things that i say and put out online now the big message that i've always prepaached and lived by d it takes over exposure to amc stock is only investing into it what you're willing to lose. especially call options. this is something i've been talking about over the last probably three months is you -- these call options, you know, buying a $70, $80, $100, $110 call has a decent odds lottery ticket that's what those are because we can't predict the volatility either up or down. i would say it's a better odds

lottery ticket than doing something else i'm never going to pretend that's not what it is. that's what a call option is as long as you have limited your exposure and managing your risk, managing your exposure to the stock and you're not putting yourself in a situation where you can't pay your bills, can't take care of your family, can't feed your mouth, you're sitting okay the fundamental value i won't argue that in the least bit. it will come back down to that eventually when the squeeze is all said and done. the story line has not been written. >> we appreciate you being with us offering your unique perspective. it was a lesson to all of us. >> appreciate it. >> continue following the apes you bet. thanks >> trey did a good job even with your blood sugar level up here in the stras to the fear. >> i've been eating the donuts. >> from the donuts that was good. coming up, getting ready for the may jobs report. check out shares of bed, b

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just a few moments away from the release. dow is down 21 points. we'll have more when "squawk box" returns

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it is the final countdown for the jobs report. looking for 617,000 jobs unemployment rate of 5.9%. the actual number just moments away our team has assembled to break out the numbers. look at the instant reaction keep it right here "squawk box" will be right back. in front of you like..like it's a mirror, dad. you know? alright, okay. how's that?

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welcome back to "squawk box," everybody. this is cnbc and we are just a minute or so away from the government's may employment report ahead of that number let's welcome our jobs panel for some predictions on this or maybe some after reaction at least austan goolsbee is a chairman

under president obama and a professor at the university of chicago's booth school kate moore is with blackrock's global team and diana is a former chief economist at the labor department of former george w. bush and adjunct professor of economics at george washington university. we have steve liesman and rick santelli i'm going to ask you in 10 seconds give me your number. austan, you first. >> well, one of these months we're going to get a big number. >> too long. >> i'll say 800,000. >> okay. let's move on. kate, how about you? >> 730 slightly above consensus. >> diana, did you make a guess at this? >> well, no one knows what it's going to be but it's going to be a strong number. i think it's going to be a strong number. >> okay. rick, how about you? you have a number you're looking for? >> yeah, 550,000 and 5.8 on the

unemployment rate. >> steve, how about you? >> randomly guessing 852 >> randomly guessing because adp and others have been so wrong lately >> yeah. it's been -- i'm guessing it's going to be on the high side going back and forth between strong and weak job growth march to april and may. >> we know the jobs number, the consensus estimate from dow jones is 617 unemployment 5.9%. steve, go ahead. rick -- >> we're up. we're up 559,000 is the may nonfarm payrolls and if we look at what's going on with respect to the change in private pay rolls, 492,000 manufacturing 23,000 the unemployment rate, 5.8 and be if we look at average hourly earnings month to month, a robust half of 1%, up .5

we look at year over year, another robust number. up 2% and the average work week for all employees, 34.9 and finally the labor force participation rate, 61.6 that's a bit of a disappointment 61.7 twice post covid is the post covid high. i do want to mention prior to covid this number was 63.3 in february of 2020 and finally the under employment rate was 10.2 a .2 drop from our last look the markets quickly taking a stand. haven't moved too much on the treasury side. it looks as though they firmed up on the pre-opening features and the equity side and it certainly looks like i nailed both of those, doesn't it, becky? >> it does you were off by just 9,000 you came in at the lower end that a lot of people were anticipating i think people expected a bounce back what made you think that it was going to be on the low end,

rick >> there was a great quote by i think -- yeah, president of manpowergroup. employees are acting like consumers in how they are consuming work and the san francisco fed saying that extra benefits have an effect on job decisions. i think both of those things along with on my way to bowling last night in one square mile of commercial complex 14 help wanted signs so i think all of those put together helped me derive my numbers. >> austan, you were looking for a higher number of 800,000 what do you think is happening here do you agree with rick that this is going to be something that temporarily puts off unemployment until you get through to the fall or something? >> well, first, i'm going to give a hat tip to rick that was a really good estimate. it was only unfortunate he was the guy reading the numbers because how do we know he didn't get the number and change it

>> stop with the conspiracy theories look, i think to me the most important fact is that we're getting control of the spread of the virus. so i think we're still due to get a strong rebound on jobs this number's okay we want it to be higher. it's weird that we're viewing 550,000 numbers. >> there are a series of states cutting off the unemployment so if your view is as that runs off that makes a big difference, you should probably start seeing the comeback to the work force and the fact that there are so many job vacancies i think is great. i think you're going to see wages go up strongly i think the job market is going to continue to improve

>> diane, there was a conversation we had with the manpower group ceo they're trying to get employees in high school jobs. the small businesses are also facing that. almost half the small business owners in the month of may said that they were having real problems trying to get people in for jobs the highest level they had ever seen what happens here? why are these things happening why is it so difficult to get people in on jobs? is austan right, they're going to have to pay more money to get people to work >> with the level of unemployment benefits, it's certainly worthwhile for some people to be staying at home, but one question is were last month's numbers revised up or down we had a job creation number of 266,000. was that revised up or down? >> up a little bit up a little bit. >> one >> two-month provision is

227,000. 27,000 is a two-month revision to the up side, 27,000 >> because we should realize this is the first flash of data. it's going to be revised two more times so it's interesting that last month's was revised up so we don't know what this is going to end up as but definitely i would say that there are some individuals for whom the unemployment benefits are persuasive in having them stay home, yes and then others still want to get out into the job market. >> kate, what does this mean for the markets? >> yeah, i think we're in a sweet spot here. i was saying between 500,000 and 1 million is a continuation of current -- its current situation. expecting the fed will start talking about tape perfecting, focus more on the wage side and focus on the challenges that companies have across all different industries, not just service industries, more and

more commoditized labor in getting people back to the seat. one of the numbers they focused on was the wage gains. i think this is going to be really important for the consumer story and it's going to be really important as we think about corporate margins in the back half of 2021 and in through 2022. >> that's what i was going to ask you. what does this mean for margins? when wage gains go in, they tend to be pretty sticky. it's hard to say we're going to temporarily give you these gains and they're going away in three months right now corporations have had pretty wide margins. do you think that continues? >> yeah, that's absolutely right. we're losing some of the levers that companies have used to maintain high margins over the last not just couple years but the last decade. i think the wage story is interesting. you point out it's very sticky, we'll see more companies investing in technology and software and platforms to offset the total costs of employees so i think this is going to be a really interesting discussion

over the next couple quarters watching it very closely as of right now i don't think wage gains are so much that they're going to destroy the profitability for most companies. >> austan, of course the big question is as wage gains go in, what the fed does that what it considers and if it's something that gets their attention. >> i think that's right. i think the fed has outlined what jay powell's view is the economy is coming back but is not there yet. foot on the gas. it's below expectations. it doesn't feel like it's going to change the fed's view that they want to get the economy fully back to normal before they take their foot off the gas. >> steve, what do you think of it all >> i think these are good numbers. you know, hats off to rick for nailing it

i'll take 550 some odd thousand jobs any month half a million fewer people are unemployed there are some anomalies in here that make me wonder are we doing the right counting here. retail trade declined actually that was down by some 5 or 6,000 yet a decline m construction workers. we know that's going crazy some of that could be labor supply constraints, some of it could be not really picking up what's happening in the economy. you did have what you were looking for. you had a massive influx in jobs into the leisure and hospitality sector up 292,000 i just want to see how my music guys are doing they're up 71,000. combination of food services up by 220,000 by the way, these are low-paying jobs the idea that somehow high unemployment benefit keep people back, yes, to an extent.

you have some lower paying leisure and hospitality jobs finding workers at a higher wage which is true. i'm not denying that's part of it the expectation i saw from folks at the 500 or 550,000 you are going to get a pop in the months ahead. in part because the states are indeed reducing or getting rid of the extra unemployment benefit from the federal government also a sequencing thing. all of a sudden these places open they need to find workers. that's going to be a mass that's going to happen but it takes time. >> in terms of geographically, can you break down where any of those come from or is there a series you can look at, steve, to dig into that where states are saying we're not going to extend the additional unemployment benefits? >> not yet, becky. that's a question we are going to be creating spreadsheets to figure out to see if there is an outsized increase in employment. the state data we'll get it in the unemployment claims data and on a weekly

basis. i think the 25 states getting rid of the unemployment benefits are happening in june. we'll get the state-level data in the months ahead to see what kind of effect this has. >> rick, would that be something that could potentially impact your guests next month, the month after? do you think this is something that lasts until after labor day? >> i think that it will make a positive difference, of course i do think that the big differences will show up after september. i think you made a great point, becky. transience is not a word that i would necessarily associate with wages. and i do think the postmortem on everything covid, we're going to find that the policy makers especially, our central bank, really underestimated the vibrancy of the comeback i'm surprised they haven't taken that kind of wrong-headed thought that, you know, it's going to take long it's going to be bumpy

it's aggressive and it's happening faster i think they need to make adjustments. i do think taper talk is a lot closer than they're hinting. i don't think that's a bad thing. i think that's a terrific thing. >> austan, there is no playbook for this every recession looks different. this one in particular because of the nature of what caused it and how quickly things happened and how quickly maybe they're being undone >> yeah, that's totally right and what sectors i mean, most of the sectors that led this decline were, we thought, recession proof you know, health care, services, and a bunch of things that dominated the economy that are not cyclical that said, wages going up is not bad. wages going up is good we've been trying to get wages to go up for a long time so if we could get some persistent strong wage growth for just ordinary americans at the middle of the income distribution, that would be great that's what we've been wanting. >> we were getting that.

>> especially -- >> austan, before the pandemic. >> oh, no, joe is back >> hey, austan -- >> we don't want that to happen, austan. >> steve, please i want to ask austan if i send you a box of donuts -- >> no way. >> -- got a bunch of them here am i off the hook? >> i'm going to order every single thing on the chipotle menu and it's going to be on you, joe. >> i'll bring you to rosa mexicana and we will have cocktails. get your butt back here. you keep complaining but you haven't been back here you love that. the pandemic gave you a year and a half of complaining that i am welching -- you don't have to say welching, that i'm not paying my debts. >> you're delinquent. >> all right >> donuts won't do it? >> joe, i just want to -- >> go ahead, steve >> joe, i just want to say to austan, austan, we don't want wages to go up through

artificial constraints to the labor market as a result of government policy. we want wages to go up in line with productivity as much as possible and the danger that you get into and what the fed has to watch out for, what we have to worry about is that when nominal wages go up, austan, you know nominal wages don't go back down the only way to do that for a company to preserve its profit measures -- margins is to either raise prices or to cut back on the profit margin. so this is not the way we want it to happen as you know, i was not a fan of the extended benefits. i wanted it tied more to unemployment rates in different states i think you also backed that idea. >> as did i. >> the idea wages are going up because of artificial government intrusion into the labor market isn't -- >> i agree with that, and i thought that a so-called trigger would be a better idea than just a cliff. >> right i know you did. >> the factyou're seeing wage

growth at the higher end of the distribution and that you're seeing labor shortage in other countries like the u.k. where they're coming out of their virus spread as well suggests that maybe it's not just being driven by u.s. policy. >> hey, kate, what does this mean thematically from the markets? what would you take away from this what would you tell investors to do at this point >> i think there are a couple of things i want to respond to something austan said. you know, wages are positive as long as we are getting them to the right reasons. i think this is a critical point. one of the things i'm very focused on a side from the margin story is also what happens in terms of over feeding the different parts of the economy. for example, we know that supply chain disruptions are also having a significant impact on inflation, impact on how companies are thinking about future cap ex in order to

mitigate some of these parts so it's not just higher wages, it's also supply chain constraints and i'm also very focused on what happened in terms of the fed's reaction and getting tapering sooner rather than later thematically i think it means we continue to lead into equities and they are still the most attractive asset class we need to be a little bit more selective. quality is important you want companies that have sustained and sustainable earnings growth. >> kate, is that a good thing or a bad thing if the fed were to taper sooner rather than later mohamed el erian has been saying they need to do it sooner. it will cause a bigger crash if they wait to do it they should do it earlier and gradually. >> i think we can rip the band aid off. the emergency policies that we had in reaction to the pandemic, to an economic crisis are no longer necessary when you're putting up good job growth, when you are continuing to get strong profitability,

strong earnings in the first quarter into the second quarter, it's no longer necessary to have this level of accommodation, level of liquidity in the market in fact, i sort of agree let's get the conversation going. let's start the process of normalization. we know we're several years out for a rate hike. i think the market will be able to digest it even if there's a moment, an air pocket after the first tapering talk comes out of the fed. >> austan, would you agree with that theory? just do it >> i'm hesitant. look, the fed has outlined a series of markers that they're looking for and if the jobs numbers are coming in less than what you expected, then to me the argument that the economy's overheating quicker -- >> whoa, whoa, whoa, wait a second you said over 500,000, you can't believe anybody is looking at that as bad numbers. which is it, good number or bad number >> i said it was both. it was below what we expected. the question is compared to the

fed's plan, what did they expect employment to be coming in at? and if it's around where they expected or even a little below, then they're probably going to commit to stay on their plan that's what i said when you asked me about what should the fed do so i think the argument that we're in imminent danger of massively over heating, the jury's still out on the evidence of that. and so i think our number one commitment at this moment should be to get us back to full employment and a thorough healing of both the labor market and the economy. >> hey, steve, i was listening to an interview with the head of russia'ssovereign wealth fund this morning and he was raising all kinds of concerns about what the fed is doing right now they were talking about their decision to kind of move away from dollars in some areas and he said, look, there's 40% more dollars being printed. we're very worried about

inflation and what that will mean if the u.s. is going to be exporting inflation all over the globe. bear in mind this is coming from russia that's their perspective on these things is there any truth to that is there any concern you would share on that? >> at some point, yeah i think that when we get back to full employment, when we have all of the cylinders of the economy operating, that's when i start to worry if we really saw inflation. remember a report i did a couple of weeks ago, becky. airline carriers were up 10% in april. they remained substantially below where they were a year ago. so there's still a lot of noise going on in the data i think the fed is going to be reducing its accommodation over time i don't think that they're going to take kate's advice, with all due respect, she gives wonderful advice, i don't think they're ripping the band aid off here. powell has been very clear that they're going to be very

measured in how they do this i would expect them to begin talking about tapering this summer, begin to make some kind of announcement about their plans to taper either later this year or early next year. i think that's the way they're going to do it i think they should have done it a long time ago. i'm not the guy making policy here that said, i think there are going to be substantial increases in inflation in the next couple months but talk to me in september when we have perhaps all of the cylinders of the economy operating. supply and demand are back in balance as to whether or not we have a real inflation number. >> steve, rick, austan, kate, want to thank you guys for your time diane, we got you back we had technical difficulties there. we do appreciate your time this morning. >> thank you when we come back, a lot more on "squawk" straight ahead as we get ready for the opening bell on wall street. got a couple more donuts to eat as well. take a look at the futures right now i think i'm at five but we have a lot -- these are much fancier donuts.

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welcome back to "squawk box," on c nbc, the government's may job report showing an increase of 559,000 nonfarm payrolls, right now, you can see the futures are viewing it as a

pretty friendly number, in the green, 90 points up on the dow, the nasdaq up 61, or so. joining us now for some market reaction and analysis sara malik, chief investment officer for nuveens a $420 billion global equity division and the managing partner at dcla, and a cnbc contributor sara, you have that 420, split right down the middle. amc,gamestop, and then cryptocurrencies, is that where you're with us, with a few nfts thrown in? maybe that's not where you're playing right now. >> a third, a third, a third and some spacs, actually today's payroll report is just another piece of the puzzle and it eases the pressure on the three key factors impacting the markets right now, inflation, taper talk, and peak earnings growth

we're in the transitory camp when it comes to inflation, with taper talk, we think that today's number actually keeps us further away from the targets for pricing and also employment and speaking of our portfolios, what are we talking to our clients about, peak earnings growth likely happens in the second quarter our view is all those companies that have a lot of ma tro k kale -- macro tail winds have the strong balance sheets and returning cash to shareholders so these are dividend growers and you can play offense while also defense in your portfolio. >> you indirectly answered what i was getting at and that is that these other things can occur, separate and discrete from how you look at the overall stock market in terms of valuation and speculation, and whether the fed is influencing price to earnings multiples by keeping rates low, you can deal with all of that, and still stay long, based on some of the things you just said

>> yeah, if you look at the individual investor, they're here to stay there's options data, there was activist information in january, pockets of bubble, impact with smaller investment investors, you saw that in january and for the larger firms like ours, it's an advantage, we use this type of volatility as an opportunity to step in and provide liquidity on the other side, where maybe it's not gamestop but some of the bigger companies that become cheap, with some of these other asset managers that get impacted because of the individual investor and what they're doing. >> serat, you're still dancing selectively? >> i am still dancing selectively and i think this number was more of a goldilocks number because you have the fed staying back, talking about taper but awfully more even and at the same point you have sectors and stocks that going to do well, financials, select

industrials and health care is going to come back as we get more hiring. what i think is more interesting, and i agree with saira, gives us the opportunity to buy select technology stocks and you saw it yesterday, when there was a foreboding of a really strong number today and companies like a google or a facebook that are big cap, large trading at what we think are good valuations, the market gives us an opportunity to dip in so i think you stay the course, if you've got cash on the sidelines, you can buy good companies, and when the inevitable dips come, you buy even better companies that are much cheaper price >> so reopening is going well, obviously, serat, rebounding well, even though the jobs numbers are, for whatever reason, are a little disappointing, but you think this gives equities a tail wind for how long >> i think for the next three to six months, joe. there's an interesting point here because of all of the money coming in from all of the states, you're going to see an

uneven jobs report but the biggest thing to watch is credit spreads and i think when the fed does that, that's what we got to watch. >> thanks for hearing the talking, sarat because that means i have ten seconds to say goodbye. thank you. happy doughnut day becky, gdwlperooilow, eating nothing. "squawk on the street" is next have a good weekend. you got your new customers — they get our best deals. you got your existing customers — they also get our best deals. everyone. gets. the deals. questions? got it. but, why did you use a permanent marker? because i want to make sure you remember. i am going to get a new whiteboard. it's not complicated. only at&t gives new & existing customers the same great deals on all smartphones. get up to $700 off our latest 5g smartphones.

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good friday morning. welcome to "squawk on the street," i'm carl quintanilla with david faber and morgan brennan, cramer has the morning off, may jobs come in 559,000, that's a bit below consensus but nearly double the april figure, unemployment down to 5.9, and wages up 2% year on year our road map begins with may jobs, and solid gains, boosting confidence in the comeback we will get to the first reaction from the biden white house this hour. plus, the blank check company purchasing square confirms talks to buy a 10% stake in universal music group and also going to go on to seek separate business combinations and i can't begin to tell you how complex this potential deal is. >> and i can't wai