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 wait to hear you

break it down. >> amc shares are lower again this morning ahead of the open this is the theater chain looks to sell 25 million more shares carl >> guys, got to jump into the jobs number here, obviously a bit below consensus of 671, whisper was a little above that, guys, restaurants added almost one in every three jobs added, 186,000, the question will be, david, whether or not this is what the fed considers substantial progress >> yes, i mean wage growth, where we have average hourly earnings jumping 0.5 and that's month on month, right, and this is double i believe the estimates, morgan, which was around 0.2 a 0.7 rise in april. you know, leisure and hospitality workers obviously are coming back into the work force. but again, inflation is what we're going to continue to talk about, and this idea of whether in fact it is transitory, or not, is a debate that continues to royal the markets,

particularly as we look to the second half of the year. >> and we see the average hourly earnings numbers tick up the way they are and couple that with the fact that i think this number came in, while much stronger than the month prior was weaker than exists were forecasting, and i think it really speaks to this debate we've been having, this discussion we've been having, with so many ceos, and entrepreneurs on our air about how tight the labor market actually is, or isn't, how easy or not easy in many cases it is, for companies to actually find the workers they need, and it goes right back, carl, to that discussion, around fed policy that we just kicked this our off with and something to talk about in the next hour too, with a certain fed official as well. >> we will talk to the labor secretary, labor force participation, guys, not necessarily a number that you would like to see, wages for nonsupervisory, up 6.8, annual rate for the month, david, i

mean there had been some hope at least that people would know, my benefits are going to be ending, basically in nine to 12 week, and i better get in before there is a mad crush of resumes on the market, but it is just happening a little slower than the street expected >> slower than many had anticipated and of course continued debate about how many people are staying on the sidelines because they are receiving benefits, although to your point, not that much longer, you may want to start to think about re-entering the work force, and certainly do seem to be jobs aplenty in certain areas. listen, we lost what 22.4 million jobs, march and april of 2020, we added about 14.8 million, thanks to peter bookvar for his quick note which helps in cutting through some of this stuff, so morgan, still 7.6 million jobs below where we were but of course there is an expectation that many of those jobs will start to be filled because they're available as people do come back into the work force now, it's not just the benefit, it's also child care, and as vaccines thankfully are becoming

more and more the rule, you know, you're going to have to be willing to go back into the work force as well, and women in particular, who have comprised so much of the lost jobs. >> yes, i also think we need to start talking about baby boomers that threw in the towel and said that's it, okay, i'm going to retire now and what that has meant from a structural standpoint, in terms of labor force participation rate, in terms of the folks who are willing to and want to go back out to the work force and i would note that maybe we're seeing some churn when you see construction jobs down 20,000 positions, retail down 6,000 but we will get more on the market's response specifically to today's job numbers. right now with two guests, david kelly, chief global strategist at jpmorgan asset management and michael, distribution wealth manager, chairman and ceo. happy jobs friday, thanks for being with us this morning >> sure. >> michael, i'll start with you, i want to get your response to the numbers we saw this morning.

and what that actually means for the market which seems to be at least right now pre-market, responding from an equity standpoint pretty favorably. >> that's the good news. my concern was we were going to have some blowout number and then a big concern about inflation and the federal reserve, and in fact, things are coming back more gradually i think is a positive for the economy and i think that's why you've seen the market bounce based on this news and in my view, it also gives additional support for the need for another stimulus package, and infrastructure bill that they're working on right now in washington so i think it's all in all, while it may be the headline, a disappointing report versus expectations, i think it's actually a pretty good report, in terms of market, because it appears as if these numbers support that we are having a reopening but we're not going to perhaps have the screaming inflation that many are concerned about. >> i want to dig into that stimulus piece, that conversation a little bit more, especially given the fact that we do know there are ongoing infrastructure talks today,

coming out of the white house as well but first, david, i want to get your thoughts on numbers this morning, since i know you are forecasting a much stronger number in terms of jobs added for the month of may >> well, that's right. and i think what this report really says is we've got a labor supply problem i think it's a temporary one but to me, the number that jumped out of this report is that the labor force actually fell by 53,000, and normally, when you have a recovering economy, when you're coming out of a pandemic, you would expect to see the labor force rise, so what's happening i think is a lot of people because lingering pandemic concerns, but also because of unemployment benefits, aren't coming back into the labor market, and that is causing wages to go up. what we look at year over year, the last two years, we try to take out the extraordinary distortions from a year ago, but over the last two years, the average hourly earnings of all workers had gone up by 8.8%. so that's 4.4% annualized. and that's about the strongest we've seen at any time certainly

in the last 15 years so we are seeing strong wage growth and i think that will stick. so i think even as some of these distortions in the labor markets ease over the rest of this year, the fact that businesses now have to pay up for labor, i think that will feed through to somewhat higher permanent inflation, not just the transitory inflation the federal reserve talks about so much. >> michael, i wanted to get you on a couple of different things. one is those who have been unemployed for 27 weeks or more, we are starting to see some good improvement, i wondered what you think that means for the longer term, and then just this optimistic notion that people have the option now to be a little bit more choosey about the job they take, some believe that that means less job churn down the road, better job matching, which is in the end an efficiency for the economy do you go along with that? >> i think that's just noise at this point i think it is really just a transition off of unemployment benefits of the economy still

reopening. here in california, there is still lots of california whether or not you should have masks or not masks and certainly employers are watching that information very carefully regarding the regulations. cal osha for example is very torn, even if you're vaccinated, whether you should wear a mask indoors or not indoors, so in the united states, certainly there's a wider opening, i think, leading toward people re-entering the work force, in california, which obviously is a very populist state, there is still a lot of concern, and a lot of confusion about what this is going to mean so i think for employees, for particularly those who are very nervous about the covid situation, they're just really, really uncertain apple for example, announced, having people in the office three days a week and i know that's created some concern for employees of apple so it's really hard to say i think david is very much correct, there's a lot of sort

of anomalies happening right now but i think long term, the trend is moving up, wage growth looks pretty good and i think eventually we will recapture a lot of the jobs captured during the pandemic. >> what does that mean in terms of where investors should put their money to work right now, especially as we see something of a mid ling movement for the broader market, but then you have these pockets of fervent trading, for example, amc, which we've been talking about all week >> yeah, i think people should try not to look at some of these meme stocks and all of the distractions here. the message that i think people are missing here is that inflation is building. and there's no excuse for the 10-year treasury yield to be at 1.60 today we have oil at $70 a barrel, and all of these pressures where businesses have to pay up for labor and i actually like to see businesses pay up for labor and that is inflationary and i think what it suggests by the end of the year long term interest rates will be higher and it helps value over growth and i would probably still be in favor

of international over domestic and be careful about valuations. you can have any old valuation when interest rates are zero but when interest rates get pushed up, that's when valuations really count. >> michael, the same question to you. >> yeah, you know, i think i'm a little less optimistic about international. i still see the u.s., more established economies are probably the place to be, in my view, and i do believe that valuations are going to be a huge deal, and that we have, as you mentioned the meme stocks, and i think these are more mechanical issues happening in the market, with short sellers but i think that having value in your portfolio is going to make sense. i think you're going to want to have income oriented assets that maybe are not so impacted by interest rates, but inflation does tick higher so i think that the market is set up right now for opportunities for investors, as long as you're watching valuations because valuations will matter. that's why tech has gone down, when inflation fears are high. and so investors can't be

complacent and with the valuation, it is a matter of the portfolio, it will eventually, it just takes time. >> really quickly, michael, just as we dig into that for a second here, i mean amc and gamestop, we're going to talk about that in just a moment, actually david and michael, thank you for kicking off the hour for us. david faber, i will go to you on amc. >> okay, what would a week be or a show with us getting, without us getting to amc. we are waiting for an open the stock looks to be more or less flat just after more or less losses, following the movie operator's second share sale in a week adam aron trying to gain support for an issue of another 25 million shares they basically reached their full argument ration, around 520 million share, that's all they can issue and last night he sat down with trey colin, the owner of the trade channel on youtube. take a listen.

>> if you arm us with the tools to go find vault creating opportunities, we can do that. if we're not armed with this tool, then you're tying our hands behind our back, and you'll make it just that much harder for us to land some of these attractive opportunities that benefit us all. >> talking about opportunities and the ability to continue to sell stock into a market that is willing to value this company at some $25-plus billion equity value. and yeah, adam aron wants to sell as much as he possibly can, because in doing so, you have the opportunity to significantly reduce their debt load i mean they have already raised i think what is it almost $3 billion at this point, since this all began they still have i think what's around 4 billion of net debt, remember, you got to take out cash but in five years time, or less, they've got a lot of debt coming due at the company, and don't forget of course, the most important thing is we're talking about this before we started the show, 100 million shares a year

ago of this company. and now 520 million. usually your stock goes down when you issue an additional 420 million shares, or roughly four times the actual number of shares you had not in this case this has been such an interesting week of course, with mudrick capital and that sale, where they were basically buying stock and selling it very quickly. but mudrick as i pointed out was really involved in the debt side, and i can't tell you at this point, they're up, i'm hearing they're entirely up, mudrick, they don't own any stock, which they didn't own very long, but importantly where they were playing and creating a lot of value for the fund holders were the debt securities and the first one, the first debt where they took 100 million at a 15% coupon and now out entirely, at mudrick, so they're no longer part of this story but the story goes on. >> yes, it does. and i mean just to go back to the conversation we were just having with our market guests, i mean we're talking about companies that are loftily valued right now, we can talk about the fervent nature of the

trading and the speculation and the role, it was just mentioned, about the shorts in here, and how much that is actually impacting the dynamic, and et cetera, but these are also companies which amc or gamestop that we're talking about that still exist in the russell 2000 value index. they started to get bought into because they were looked at as value plays on the retail side and that speaks to the dynamic around value trading and how that is changing, carl >> it's true and amc alone guys, as a percentage of overall nyse volume this week is mind-blowing to say the least david, we're definitely at a mode now where the street is giving up. wedbush raises their target on amc to $7.50, from $6.50 they say they could envision as high as 10, depending on how they reduce their desk and create some opportunities. i see b of a today, stops coverage of bed bath, and gamestop, saying don't listen to anything we've said about it,

they have stopped trading on the fundamentals so this was a real morning where the street just shrugged their shoulders. >> listen, to be fair, adam aron that release yesterday when they sold shares said similar things in terms of don't rely on the current stock price to be anything near where it is. yes, it does not allow itself to be subjected to the traditional securities analysis i think is fair to say. if you want to share that, here's some of the numbers, right? i think the peak operating cash flow was 900 million bucks that was peak revenue. they have taken some costs out maybe as much as 300 million bucks out. so if they were ever to hit that peak revenue number again, they might have as much as 1.2 billion in operating cash flow but carl, that's a key question, because of all of the changes in behavior that have gone on so how many people will really go to a movie theater >> and if they come back to 900 million in operating cash flow, what is it, a six to eight multiple, still a declining business you can figure out what's that's worth. a lot less than the current stock price. to your point, none of that seems to matter right now.

>> not today guy, we'll take a break. a ton to get to. we will continue to obviously dive into the jobs number if you're just joining us 559,000. below consensus. oil, getting close to 70 as the dollar is down on that jobs number we're back in a moment when traders tell us how to make thinkorswim even better, we listen. like jack. he wanted a streamlined version he could access anywhere, no download necessary. and kim. she wanted to execute a pre-set trade strategy in seconds. so we gave 'em thinkorswim web. because platforms this innovative, aren't just made for traders—they're made by them. thinkorswim trading. from td ameritrade.

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largest spac that was out there, and remember, it was issued at 20, not 10, raising an enormous amount of money for the sponsor, bill ackman, and we have been wondering and many of white house follow these things, what would you target, because given the size it had to be a very large potential business and then a potential deal that is not a spac deal at all, and incredibly complex i will try to explain some of it to you here's the basic. >> acquiring 10% of universal music. $42 billion valuation. which is well above where ten cent music group once the shares are on the exchange, the shares will be distributed to holders of the spac later this year this is not a spac deal. easiest way for me to say it it is a purchase by this entity of the stake in universal music,

that then is going to be distributed to the holders and the spac will live on, but of course, because mr. ackman i guess needs to show us how incredibly smart he is, i called you, bill, i don't know if you returned the call to try to explain this to me, but they will create this thing called a spark, because you have the spark, it is not a spac, but you are going to get, you are going to get the hedge fund, ackman's hedge fund, around 29% of the sparc, they are calling it a special purpose rights company and spac investors receive a stake in the new sparc, which won't have a time limit but will use the capital in the spac and potentially new capital to pursue a new transaction following any of that? i guess the real question, my perspective, is simply why in some ways, the $4 billion purchase here, 4.2 billion, given where i think the valuation is coming in, is

similar to what would have been if you formed a special purpose vehicle and said i want to use, raise money to invest at this valuation that i feel is very favorable, it's not being well received yet in the market place. >> no. >> by those spac holders who i'm sure like me and many others who are trying to understand exactly what is going on here given all of the different permutations. >> do you think this is reflective, and this goes back to the whole meme stock discussion we're having, but reflective of how much money is in the market chasing such a finite number of assets. >> and what could we do a traditional spac merger with in terms of a company, it would have to be one of the larger companies out there given how big the spac was, how much capital was raised to be fair, mr. ackman, his compensation, and things associated with this original spac were much more favorable to shareholders than your typical spac arrangement now i don't know where it all

stands the warrants go away you know, what else can i tell you? yes, due diligence is done but the warrants go away the exchange -- you know what, carl, i'm not going to go there any further than this. we will come back to it numerous times, we will see whether it happens, i guess the winner here at least from my perspective, got to be the vendee, a great valuation on universal music group which of course they control. >> yes, when something puzzles you to some degree, you know it's confusing we'll take a break here. when we come back, white house reaction to the jobs number today. we'll talk to the labor secretary marty walsh later on as we await word from the president as well on the jobs number another look at futures and the friday edition of "squawk on the street" is back in a moment. this is andy, my schwab financial consultant. here's andy listening to my goals and making plans. this is us talking tax-smart investing, managing risk, and all the ways schwab can help me invest. this is andy reminding me how i can keep my investing costs low

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job number not up to consensus but futures seem to agree it will make whatever the fed's next move is a gradual one. in the green lots of other news to watch, including amc and a nice upgrade of wells new street high for ford we will get to all oth wh f atit the opening bell in about five minutes.

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bitcoin is moving lower this morning and once again we are asking ourselves if it is the elon musk effect last night he tweets a bitcoin hashtag with a broken heart emoji along with a meme about a couple breaking up with a lyrics from a linkin park song, it doesn't even matter and we are on the outer edges to understand what musk is trying to communicate with the memes. >> as you know, i gave up long ago and i will turn to my

younger savvier colleague who may have a better idea. >> every time he tweets about something like bitcoin is, this material, is this material to tesla, since he has $1.5 billion worth of bitcoin on the tesla books, it goes back to the whole debate we have about ceos and musk being at the helm of what could be a trend tweeting, turning to the math, directly to talk about their company, and that being said, i also wonder if the fact that the biden administration also said last night that they're going to be investigating bitcoin and cryptocurrency in conjunction with ran someware and the hacks we've seen and if that is pressuring the cryptocurrency market today, carl. >> in the meantime, tesla has not had i would argue material headlines but certainly not net negative, there was piece of the information last night, that orders in china have been cut in half, month to month, from april to may, there was some discussion about the recalls, they've had about three recalls this week alone, not large numbers, but again, raising

worries about quality control, and then the street is definitely paying attention to the competition coming from gm and ford citi goes to 73 on gm this morning. and jpmorgan puts a new street high on ford as we get that f-150 lightning not too long ago. the opening bell and cnbc, realtime exchange. monday is going to be a big day, because you, jim, and i will be back, at the nyse. >> so will i. >> it says here, for the first time in 15 months. >> and i will be there as well for the 10:00 hour. >> and i have been working on our seating. i think they put the chairs closer together. it's been a struggle but i think we're going to be back, almost to normal operation in terms of even being near, somewhat near each other but we will be at that desk on monday morning. very much looking forward to it. in particular, to see you, my friend, in person. once again, every single day

>> i know jim is excited about it and the larger context, david, i think it's important, the closing bell is great, which we're glad to see, squawk is back together, but the banks are going to be using june to bring people back as well so i think it is a collective statement about what is going to happen and probably what needs to happen in new york city. >> yes, and it's funny, when we were doing the interview on the jobs report, the gentleman pointed out apple, i mean there are still corporations, carl, that are not comfortable with the idea, and/or feel as though it has actually been efficient with their work force to only say two, three days a week is what we expect you to be in. and how much of that will remain the norm i think is a key question, but to your point, particularly, in new york, well, you've got a lot of financial services-related firm, not just the big ones but smaller ones as well, many of them do expect to have most of their employees at least back on a full-time basis in the office, as the summer

moves along, morgan, and then eventually by september, it becomes that conversation, as what i've heard, from many of the bosses so to speak that you're not going to be coming back and maybe we don't view the culture the same way and we're not as important to you and maybe you should be looking elsewhere. >> an evolving situation and we're having it, as we've seen, a robust of roll jout of vaccinations, i think it is at least 63% of americans who have one shot at least in their arms and speaking to herd immunity and the reopening efforts. new york city in the summer time is usually when everybody cleans up and instead i think there is anticipation to your point that at least for june it is actually going to be busier than we've seen in quite some time. >> and listen, i've been in midtown a bunch, and it is definitely, there are real people walking around in suits again. so just watching that, and that's only been the last few weeks i think i've noticed that uptick a lot more activity on the streets and even some of the restaurants, and that's good to

see. and then, carl, we've got amc. kind of like, remember the weeks where we talked about anything, and we just watched gamestop shares, i guess we're back to that in some way. >> this is when the control room dictates what we talk about, just by putting the chart up we're definitely going to watch amc today. although i hope they make some room for a disney chart, because we have avengers campus, a disneyland, and the news about iger selling shares and lots of speculation about his intentions on "squawk" earlier this morning. >> yes, i don't know what that means exactly about his intentions, i mean he's, you know, bob had an incredibly, maybe one of the most successful tenures as a ceo, obviously as you guys know, report so often, on mergers and acquisitions, what he did to transform that company through m&a, and many other things, will be in textbooks and then the pivot to direct to consumer but it's not a secret that he's leaving. and at the end of the year, he

will try and find something else to do. and i don't think he will have any shortage of potential opportunities. 's not going to run another company. and you know, do you want one of those vice chairman roles where you sort of basically, you know, they put your name up and it helps in some way but you're not really active? i don't know that's the right fit for mr. iger who i think he wants to stay actually actively involved in whatever he does become involved with, but i think he is trying to figure it out like so many people of a certain age, you troo toy f-- yu try to figure out where you're headed after an incredible career but no surprise he is selling some stock >> and i will go back to amc and a number of companies, this week, and bed, bath and beyond we've been talking about, that company had news this week, it is up 2% it is actually only up 15% for the week though despite some of the crazy moves we've seen in

that name. work horse, blackberry, gamestop which is the one ha we go back to, thanks to january and what we saw happen there. koss corp. another one i keep an eye on, the virgin galactic space which has been a meme and reddit favorite, if you will, although that one has actually come off somewhat, but you know, david, just to go back to the whole work from home dynamic and discussion, it's probably also worth noting that in that very long interview with adam aron from amc last night, there was a moment that i think many, well not many of us who have worked from home but some who have worked from home have perhaps experienced before when there are dress forbusiness on top and maybe not so much on the bottom >> make sure that our long-term future is very bright. and right now, we don't have that, we don't have that tool at our disposal >> well, now we know something

we didn't know before and i'm not sure we want to know it. well, listen, anything, whatever it takes to get that $25 million authorization. he's ready. >> i'm actually surprised that that kind of flew below the radar for the coverage >> i don't know, carl, we do plenty at home i always felt like i always needed to be fully dressed fully dressed. >> yeah, i mean, it's working in the home environment and it's real it's real. actually, on a serious note, guys, b of a does mention today, even though we're talking amc, it is gamestop that has seen the largest short term gains and volatility of all of the meme stocks this year it's amc's week, obviously, with gamestop pretty much so far. and jobs number, 559,000 in may. less than the estimate of

671,000. unemployment down to 5.8 from 6.1. with more on, this let's bring in the u.s. labor secretary, marty walsh, mr. secretary, welcome back, happy friday it's good to see you again. >> happy friday, thank you for having me today. >> so the general read on the street is we were looking for a number that would be conclusive in some ways, and a lot of people are still looking for what this is telling us about progress, why is the labor force participation rate come down a touch, what has it told you? >> what it is telling us is that president biden's economic plan is working, we've added over 540,000 jobs over the last four months, and since the president has been in office, it shows that unemployment rate came down this month, but we still have a ways to go, there's no question about it we're recovering from a pandemic and you know, it would be great, when whee shut down the economy, basically, because of the pandemic, you can't just flip a switch and get it back on but there is a lot of good signs we're seeing the largest job growth with leisure and hospitality and education and public education, so those are

great signs, and as we continue to move forward here, we hopefully will continue to see these gains. >> last month, when we talked, you did not believe that the employment supplemental was a factor in delaying people's return to work we've had some states now, stopping on their own. do you think the progress month on month is related to that? >> i think you are seeing, in this month, as i said, in the hospitality industry which includes restaurants and bar, one of the biggest concerns people had, people were going into those industries, that's where we saw the gain and i think as we continue to move forward here over the course of the next couple of months we will get more and more people back into the work, back into the economy and that will be an importantpart moving forward the ui benefit, that was there, thank god it was there, because people were able to keep a roof over their head and food on the table during the pandemic and we're starting to see the light at the end of the tunnel getting larger and hopefully continue to move down that road. >> i'm curious how you see that road going at this point, it is

not that many weeks away until some of the benefits start to expire as carl pointed out, in certain states they're not getting the supplemental as well, so you expect the next jobs report to reflect more people looking for work yet again? >> it would be great to see that obviously. i don't want to speculate or make any predictions today because it is a month away but when we look at the hospital at industry, leisure industry, probably hit one of the hardest, we've seen significant gains now from last month to this month, and as we get into the warmer months, and the summer months, where people travel, we'll hopefully continue to see those gains happening, and i think that hopefully the dependence on unemployment goes away and we will have fewer and fewer people looking to be on unemployment. we saw the lowest drop in unemployment claims last week, which is a great sign as well. so there are good positive signs here i don't want to be, i don't think it's doom and gloom, or trying to sugar goat anything. this is a -- sugar coat

anything this is a good solid point moving forward and we need to continue to make gains like we did today. >> i would assume you're fairly encouraged by wage growth particularly in hospitality and leash usual, although in our world, mr. secretary, that always leads to concerns about inflation. i don't know if you have those conversations in the office that you're in, but we certainly do over year. do you have any? >> we certainly keep an eye on all of that. we had a conversation this morning, so we're watching that very closely with inflation, to see what the impact of the wage increases are. but we're going to continue to monitor that closely as we move forward here, in some cases, where we can make adjustments, and make adjustments >> mr. secretary, it is morgan just to dig into that a little bit further, would he have average hourly earnings up a half a percent versus the prior month, stronger than expected from a street standpoint and you fact that in with the nfib, with u.s. small businesses that can't fill job openings, now is there a need to increase the federal minimum wage >> no there definitely is, i think increased wages is important for the american

people it's important for the workers it is important for the economy. it will allow people to spend more money in the economy. and i think that, you know, what i don't want to see is taking wages backwards, i think it's important, the president's message is about creating opportunities in the middle class and creating opportunities and getting to the middle class means better wages for people. >> where are we in terms of the infrastructure talks right now there's a lot of reports about negotiations, around what the corporate tax rate is going to look like, what the final number is going to be, where do we stand? >> well, you know, this is a very fluid conversation, as you saw, you guys reported yesterday, the president had some very important conversations, with leaders in the senate, to talk about what that plan looks like, it's the fluid plan, we are all negotiating and talking to different people and i have been around the country talking about the american jobs plan i've been talking to members of congress, members of the senate, other people have been doing the same thing, the important part here is it is actually in negotiation, it is a conversation and we are having

all people with the conversation now, this is not about not having people at the table and i think from the very beginning, when the president talked about this, we was talking about a bill that can move forward, and that is bipartisan, and i don't know what the end result will be but right now the conversations are happening and that's important >> the jobs number has lots of noise and you mentioned the restaurant factor which is a big one this month and people are still scratching their heads about construction down 20 i mean again, always dealing with seasonality and weather, but is there a good explanation for that >> you know, we have that conversation today as well, and from somebody who came out of the construction industry, i think some of it could be material in supplies, too, because during the pandemic, a lot of construction in some places we stopped it in boston for about six week, and some places slowed down so now i think the summer months are coming, construction is ramping up this cutback in jobs was not a result of small homes, it was a result of bigger projects. so a lot of it could be, we still have to dive deeper into

the numbers but i think it could be into materials, and getting materials on job sites >> finally - >> when i say -- sorry, when i say materials, i mean materials, construction materials on job sites. not workers. workers are available in construction >> yes, we knew exactly what you're talking about having our eyes on the lumber market and so forth the last few weeks. finally just on wages, the fear as david pointed out is that the longer we go on with wages rising month on month like this print shows, that the fed's going to have a tougher job arguing that these inflation metrics are transitory, and i know that's not your bailiwick, but i guess i wonder what you would tell the street as they try to gain that out. >> before we go over there, we've had, to my knowledge, if i remember correctly, we had one month that showed wage increases. so i want to see, let's see what we do in the next couple of months here as we move forward here, if this is a one-time

event, or is this going to continue on as we recover from the pandemic >> mr. secretary, it's another interesting report, lots to chew on and we appreciate your insight as well. have a good weekend. thanks. >> thank you, everybody. have a great day >> let's get to rick santelli for a bond report on this jobs friday rick >> thanks, morgan. bringing out the number, the wages were a huge component, those are big numbers, and yes, transient is not a word typically applied to wage area, most likely these things are going to be sticky, sticky, sticky let's look at the marks. if you look at an intra-day, a focused intra-day of 10-year note yields you will see we started a drop in yield before the number, right on the number, volatility spiked up and traded up to 1.62 plus. and then drifted after the number and here we sit at 1.59. down on the day. down on the week but all roads lead to 1.60 as

the two-week chart shows and even if we were to do a bigger chart for the last couple of months you would see that it seems that at 1.60, 1.61, if you had to pick a high frequency number in the 10-year note yields, that's home base now as far as the other big moves on this nonfarm friday, it's all about currencies. and all of it is kind of against the greenback. let's look at an intra-day of the pound versus the dollar. you can see the dollar dropping there, dollar versus yen, yen soaring, after the number. and euro versus dollar, euro soaring after the number and now, to summarize this, let's put a two-day in the dollar index because they had a nice day yesterday. we've taken away a good chunk of yesterday, and as a matter of fact, we're now barely up on the week and the reason this is so important, is it just has all the earmarks that much of the buy-in that we saw yesterday was most likely short covering and watching how it behaved after

nonfarm payrolls, most of that short recovery is probably nervousness regarding riding the big position into today's number carl, back to you. >> that's exactly on point, rick thanks so much rick santelli. speaking of all of that. still to come, an exclusive with cleveland fed president loretta mester, and job numbers and a lot more the numbers have swung around about. e w u123.

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the salt tax is quietly redrawing the map of wealth in america. robert frank is an expert in that and joins us with details >> you know i love talking about your favorite part of the tax code, the $10,000 cap on state and local tax deductions it is changing the map of american wealth.

a study by joseph briggs found the salt cap created an effective tax hike of over 4 percentage points for high earners in new york and california and up to 12 percentage points compared to states with no income taxes. that larger gap is why over 5% of the highest earning households and over 6,000 households earning more than a million dollars left new york after salt now, that wealth flight causing a decline in tax revenue of about 1% in high tax states. at least before the pandemic but it is likely about to get worse, because the recent tax hikes in new york and new jersey goldman estimates wealth flight could reduce revenues from those tax hikes by more than 30% perhaps erase them altogether once the stimulus wears off. the report says we expect the tax hikes will meaningly increase em brags from new york which will in turn reduce the

almost $3 billion in revenue they had projected goldman not expecting a salt repeal, but says a possible increase in the salt cap maybe to $50,000 is more likely that would still do little to stem the tide of these high earners to places like florida and texas. guys >> yeah. that exodus is one that continues, robert. of course, then it goes to the larger of issue of whether companies are going to have a better time recruiting people in those states as a result of the fact that people are moving there. we'll see where it ends up i guess the key question and the one that's been debated for years is by increasing taxes, do you drive people out and therefore, it's revenue neutral. what was the point of it to begin with >> exactly that was the most startling thing to me about this we knew anecdotely, we know a lot of wealthy people that left to florida the fax we just raised taxes in new york, they were hoping for $4 billion a year in added

revenue. it's down to 3and could be half what's the point if you're hoping for a long-term recovery of new york city and the state >> yeah. something we're watching closely and we know you are as well. robert, thank you. robert frank david, before we close out the hour, we haven't really gotten to some of the calls today. though, i hear music are we going to break? i thought we were going to cover this wells fargo upgrade at b of a. they go to buy and a price target of 60 they're looking for normalized return on total capital in the mid teens. talking about expense control. bigger than that, the notion they're still among their peer group the only group not trading above the precovid high. so going to 60 would be a double they began the year at 30 and currently in the mid 40s >> if jim were here, he would talk about the possibility of c

car and more return of capital it's been a great year for the stock as you point out already at that point. we also look at autos this morning. again, after that rally yesterday, morgan, with both ford and general motors. general motors on the much more higher guidance for the second half of the year >> yeah. and it goes back to the conversation we've had about the outperformance of the more traditional established auto players versus the newer names like tesla or ev plays that have gone public. many of them via spac and many of which has sold out of in recent weeks >> although as b of a pointed out, gm market cap 90 billion. ford 63. tesla 550 billion, david, even after some of this move lower. it's still a long way to go for those names to catch up to market cap like tesla's. we'll take a break we'll hear from the president on the jobs number in the coming

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good friday morning. welcome to another hour of "squawk on the street. i'm carl quintanilla with morgan brennan and david faber. people perhaps looking for a more gradual move by the fed the dow is on pace for a second week up. nasdaq going for three week and we're not that far away from record closing levels. factory orders are out let's get to santelli. carl, we know there are issues, fly issues i think you're seeing it in the numbers. factory orders for april down .6 %. that's down triple or estimate of down .2 transportation, transportation was the negative because without it, you jump up to up half of 1% up .5 extransportation durable goods, the mid month reads toss them for the april final read mid month minus 1.3 on durable

goods remains at minus 1.3 extransportation similar to factory orders up to 1% same as the mid month read nondefense exaircraft one of my favorites a proxy for capital spending it's still very, very solid. that's the best read since august of last year. and finally, if we look at shipments, up .9%. back to you. rick, thank you. we are 30 minutes into the trading session. here are three big movers. we'll start with a work from home fair rallying after topping earnings and revenue estimates the ceo will join the gang on tech check in the next hour. meantime, you can see the shares up 14% retailer five below jumping after the earnings beat. comparable store sales surging more than 160% compared to the same quarter a year ago.

those shares are up about 3.5% and finally another retailer we continue to keep an eye on, bed bath and beyond with b of a moving to a no rating on the name believing the meme stock is no longer trading on fundamentals drop in coverage on game stop for similar reasons. >> morgan, speaking of which our seema mody has more on amc >> good morning. an incredible run in shares of amc putting the market cap at nearly $27 billion that makes the theater chain larger than 40% of all companies in the s&p 500 including big names like united airlines, kellogg and clorox a number of stock sales announced. roughly 20 million shares and two separate deals further diluting existing shareholders adam aaron continues to defend it on twitter and in his conversation last night with tray collins >> if you are -- with the tool

to go find value creating opportunities, we can do that. if we're not armed with this tool, then you're tieg our hands behind your back and you'll make it that much harder for us to land some of these attractive opportunities. >> just to put the stock sales into perspective from january to may amc raised about $1.6 billion short interest, something we've talking about in amc has risen to 21% from around 18% or 19% in previous sessions. short interest in amc's high but not as high as some of the other names like bed bath beyond, workhorse around 30% it does remain an actively traded stock this morning about 65 million shares have traded hands in the 30 minutes in trade. to put it into context, the volume on this day last year was around 8 million shares for the entire session a lot of talk about the massive call option volume as well in amc.

>> yeah. seema, of course, that key stat that you referenced, i mean, i think a year ago they had a little over 100 million shares now they have 520 million shares as you heard from adam aron he wants authorization to -- have the ability to do so this is an opportunity for them to continue raise capital. it's a highly levered company. they've been successful so far he has in doing that and using this unusual move in the market to benefit the company so it does secure a future life given how constrained the current business actual may be >> yep >> and mudrick capital, which he said has been a great help to the company, it has been it was there to buy the $100 million paper at 15% it opened the gates to others consider lending to the company. the offering or was bought 8

million shares of roughly 27 is now out the equity that's not where they play they're a distress firm. it's the debt that's interesting. they're out on that front, having secured significant gains on all the debt instruments as the company did successfully avoid bankruptcy >> this has been part of adam aron's strategy even in the past he's come from hospitality he's the former ceo of norwegian cruiseline starwood capitol as well as vail resorts. he was called in an article as the man who transformed the ski industry when he was the ceo of vail resorts and he issued stock there and those companies when they were going through a tough time you wonder if this is just sort of part of his strategy. he's done a great job capitalizing on the momentum behind the stock and the investor enthusiasm around amc and we'll have to see where it goes from here >> lives to fight another day. what that life looks like for this company is very much unclear to many. seema, thank you 75 million shares now in volume.

guys, we'll turn back to the jobs number. our steve liesman joins us with a special guest. good morning, steve. >> good morning, carl. yes, we have cleveland fed president, an opportunity to get the fed's views on the jobs report this morning. good morning, president messer >> good morning, steve glad to be with you. >> yeah. a tradition to have you on jobs day here we like it give it your reaction, 559 jobs. the unemployment at 5.8 %. is this in your parlance, substantial further progress >> i view it as a solid employment report. jobs up. unemployment rate down labor force participation wages up i view it as progress continues to be gained in the labor front. that's good news but i'd like to see further progress i'm using, like, february 2020 as a benchmark and looking at how far back we

are to those levels, and some of the indicators she we're maybe about 80% back if you look at the overall unemployment rate. other measures less so if you look at labor force participation, we've only made it back half the way after the big fall again, i think we still have further progress to make i was pleased we saw progress in that report, but i would like to see a little bit more on the labor market to really see that we're on track gains, job gains, wage gains, labor force participation coming back. >> to put some numbers on what you were just talking about, i was doing calculations we're down 7.6 million jobs from february, and 3.5 million when it comes to the labor force. do you want to see all of that come back every last job before you change policy?

>> so i'm not looking at it that way. for me, you know, substantial further progress doesn't necessarily mean getting back to all the levels and there's going to be some that probably won't come back the number of people who left the labor force through retirement was higher during this pandemic recession/recovery than in previous recession/recoveries and typically, and, of course, nothing is typical about this cycle, but typically when people retire, they don't come back into the labor force i've been focusing on prime age labor force participation. again, it depends on what indicator you're looking at. bottom line, i would like to see further progress than where we are right now. >> are you -- where do you come down on the issue of how fast the recovery should be some people we're thinking the number, certainly the street's

estimate was higher. there were higher numbers out there. do you believe that job growth is being constrained at this moment by policies, specifically the issue of unemployment benefits and the extra benefits being paid by the federal government >> you know, i think there's several factors that are affecting labor supply one of them, of course, is we're really getting vaccinations more deployed but there's still more way to go on that, and i think health concerns are affecting people's choices to enter the labor market or go back into the labor market i think child care issues, and i know there's various views on how much that's affected things, but the fed surveys and talking to our contacts say those child care issues did loom charge and have kept people out of the labor force because they have to be home to take care of their kids, especially when schools were closed. as schools reopened, i think those people who had to sit things out come back but the question is how did the unemployment benefits -- i think

what happened was people were making decisions based on those other factors, but they had the wherewithal to make the choices because of the extended unemployment benefits. so you can make a choice of sitting things out if you -- because of the support you had, but i'm not sure that was the driving force. i think these other factors were really more important in terms of labor force porpgs, whether to move back into the -- >> one response -- >> retrain >> one responsive employers to the difficulty of finding workers has been to raise wages. we saw a half a point increase in wages in the payroll report this morning 1.7 % increase in the productivity numbers yesterday to -- everybody wants to see wages go up. it's a good thing. but to what extent do you worry as an essential banker that wages go up, that causes prices to go up and you create inflationary spiral? >> yeah. at this point i don't think we're anywhere near there. i mean, the dynamics in

underlying inflation are very different than in the past and we're just beginning to see some wages go up one of our beige book contacts told us who was work force development person, that they're not even taking orders from firms that are paying at least $13 an hour because he can't find workers to fill those jobs. this increase in wages is definitely happening as the supply of workers is constrained. but it's not feeding in into underlying inflation yet and that's what we're focussed on at the fed. i'm looking at measures like the cleveland fed's median cpi measure. it ticked up a tenth, but those are the longer run trend inflation numbers that i look at i don't think we're in anywhere close to wages going up that gets embedded in further price increases. it's something i'm watching. because there are tech mechaniss where if wages go up, it might feed into inflation expectations

another thing i'm carefully watching and then feed itself into inflation, but i don't see -- that's not my baseline outlook that's going to happen >> president messer, i have a hard time keeping track of what you're thinking about talking about at the federal reserve or thinking about talking about i want to ask a direct question. is it time to start talking about reducing the asset purchases of the federal reserve? >> so i am a long-term planner i like to think about things well in advance and start thinking about i've been thinking about as soon as we put on some of those asset purchases programs, i was already thinking about okay, what's the end game going to look like. i didn't know when that would be, but i've been thinking about it all along i think we want to be very deliberately patient here. because this was a huge, huge shock to the economy we see now we're coming back, but, again, it's easy to shut

down an economy. it's much harder to have it come back i've been very pleased with the resiliency of the economy, and we're going to guide our policy decisions based on what we've told you in our statements and in the press conferences which is we're looking for and basing our policy decisions on outcomes right? how close are we to getting back to our mandate goals what is the data telling us? right? rather than just wait -- having a forecast we want it seen in the data. so we're going to get to the point where the economy has come back enough. there has been substantial further progress, and we're going to want to change our policy stance on asset purchases. and then later on if things go according to what we're hoping on the funds rate. but, again, those things can take time. i think we've been deliberately patient, and i think that's been

the right strategy >> president midester, given the change in money supply, the liquidity in the market right now, has the fed had a hand in spurring the meme stock trading frenzy we've been talking about for days on cnbc or other pockets of what is exuberance manifesting in the financial markets? >> i mean, there's volatility any falinancial markets i don't think that it's fed policy that's driving that and i think one of the things that's really important in times where there isn't volatility is to look at making sure that the markets are resilient, the underlying fund wamentals in banking, they are well capitalized. we've been focusing on that throughout the pandemic, and i think to good avail. there's more work to do on that in terms of the treasury market

as you know had issues at the very start of the pandemic and those longer run issues in terms of even the nonfinancial sector hedge funds, et cetera. we're looking at that. and, of course, the board of governors vice chair for supervision is looking at those things but i think that we're not driving that, those outcomes i think that's just a case of people with their risk preferences have gone up as things improved in the economy our job is to make sure the fundamentals in the markets are sound. >> yeah. and i understand that. you have this legislated mandate, dual mandate, price stability, full employment sustaining those but that being said, is there a point at which given some of the activity we're seeing in the market, potential bubble talk in pockets of the market as well, is there a point at which the fed would need to respond? >> so i don't see that at this point in my view of the markets

at this point. i think it is -- behooves us to keep an eye on the financial stability issues you're pointing out. we don't want to take our eye off that in terms of our monetary policy tools, we want to be focusing on the macro economy, price stability, maximum employment, and then we want to be focussed on making sure we're doing all we can to increase and maintain the resiliency of the markets. and i think we -- you know, in this pandemic, we had to have an eye on both of those rlly on when we came in, the asset purchases at the start were not about the macro economy. they were about market functioning and making sure the markets were functioning we knew if those weren't functioning, it wouldn't matter what we do for the macro or monetary policy tools. it wouldn't proliferate to the economy. there is a synergy between them, but at this point, i don't see

any reason to think about -- to react to what's happening in the markets with monetary policy tools. >> president mester, thank you for joining. i have one last question, a followup before i let you go which is back to what you're thinking and talking about is it reasonable to assume that this summer, is the summer meetings, fomc and/or jackson hole are a place where the federal reserve, is it a time for the fed to begin discussing reducing asset purchases >> well, i mean, we're going to be looking at the data we're going to be seeing if the economy is continuing to improve. i do expect we're going to see progress continue to be made on the employment front and i do expect us to as the economy continues to improve, and we see it in the data, and

we get closer to our goals and the guys who put in the statement, we're going to have discussions about our stance of policy overall including our asset purchase programs, and including our interest rates so again, that's just part of the normal cadence of monetary policy making. and the key point is that we are attune to the risk on both the up side and downside, and we're very focussed on outcomes and making sure our policy is based on what we're seeing in the data, and the underlying trends in the economy president mester, we're grateful to have you on jobs friday to comment on the economy and monetary policy. thank you very much. >> thanks, steve great to be with you >> carl, back to you >> coming up, the president set to comment on this morning's jobs number. we're going to take you there live as soon as it begins. in the meantime, s&p hanging

o onto 4220. we're back in a moment

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to switch and save hundreds. welcome back we're awaiting president biden any minute to comment on the may jobs report from delaware. we're going to continue to monitor and we'll bring you there live once he begins speaking in the meantime, major averages are higher on the this friday with the s&p up .6%. 4218 is the level. >> we have spac news this

morning involving what was the largest spac out there, the one sponsored by billackman. it's not really a spac deal. leave it to mr. ackman to come up with something new. it involves the vendi which owns universal business group it's rebounded strongly over the last few years as music streaming has changed the profitable nature of the business for the better. and the value of united -- universal group has been going up in fact to the tune of it's worth 42 billion now, at least according to to mr. ackman who is putting $4 billion of his capital into universal music they're buying a 10% stake at a value of 42 billion. 4.2 billion being used to purchase the stake they'll distribute it to the holders of the spac, psth.

you saw it it's not about 9% this morning and then the spac will live on we talked for some time previously about how large this was. and could they have refined a deal this kind of is a transaction designed to do that, i guess but it's not typical in any way. following the deal, they'll have the billion and a half in cash and as i said, they'll continue to pursue a separate business combination and the umg stake satisfied the spac requirements. you won't have to be held to the spac rules any longer. and then he's creating this thing called a spark it will issue rights to the spac holders on a one for one basis at 20 a share. and that's going to add more capital to this spark which is not a spac and if you've lost me, i don't blame you. it's complicated but we'll kind of keep it simple which is yeah, 4.2 billion 10% stake. great value for universal music

group, and its owner, the shares soon to be listed on the amsterdam exchange but morgan, leave it to mr. ackman to come up with a novel structure for a spac that we were watching given it was the largest of all of them it had been issued at 20 it's getting closer to the issue price. >> it seems like a creative structuring of the deal. i would love to see a meme of you breaking down spac versus spark. >> yeah. the spark. >> but i also -- it's also very reflective we were talking about this earlier of just what we've seen in terms of this crazy transformation of the music industry as well over the past decade plus. the money that is now being made by some artists could argue it's probably not them, but some within the new streaming landscape you would see a company such as this now valued at 42 billion. >> yeah. i think in some ways is the more interesting part of the story as we try to wade through the complexity of the deal is the rebound and the music industry worldwide, and warner music is

another name you can put up. that's had a nice run of it. what a purchase that was i can remember talking years ago when stealing music was the rage that company was public, went private and came back to the public markets but we'll see he seems to think 42 billion is a valuation his spac holders will be happy with right now more selling than buying of that particular equity >> yeah. quick, i mean, ackman and there's lots of jokes about bill spakman on twitter today you know, historically retail, right, general growth in target and restaurants and chipolte i wonder what you think it says that media caught his eye. >> i think this is a specific situation. again, i -- we haven't heard from him specifically on what he views and why he views this as great value at this level. obviously people could have impon out and bought vendi or

had their own opportunity to buy amsterdam. he believes there's real growth ahead for the industry digital has been beneficial. now that people are no longer stealing >> publishing catalogs, too. the prices there have skyrocketed. >> yeah. well, when the cost of music comes down, you don't have to steal as much. that's for sure. we are awaiting the president to comment on the jobs number more "squawk on the street" continues in a moment. ♪ ♪ (upbeat music) ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪

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welcome back here is your cnbc news update at this hour. the european union retaliated last night for a jet flying over bell arus. the country's airlines will not be allowed to fly over any of the 27 eu nations or use any of their airports don mcgahn is on capitol hill for testimony before a closed panel he'll be asked about details in the mueller report including president trump's attempts to fire mueller and block his investigation. mike pence speaking out on the january 6th assault on the cap capitol. saying he and trump have different views on what happened >> as i said that day,

january 6th was a dark day in the history of the united states capitol. president trump and i have spoken many times since we left office and i don't know if we'll ever see eye to eye on that day and f. lee bailey is dead. best known for being part of the dream team that won an acquittal for o.j. simpson in 2005 hiring did pick up in may as employers added 559,000 jobs amid falling covid-19 cases. a loosening of business restrictions of course, it was below the consensus estimate of 671,000. the chief economist for goldman sacs joins us to talk about the number jan, good to see you again >> great to be with you. >> you said there would be a lot of uncertainty around the number, but you said the signals

you were tracking indicated sharply higher employment levels relative to march. directionally, do you think this number, the print itself makes sense? >> yeah. i mean, it was a little on the disappointing side not as much as in april, but i think for the same reasons, one it again seems that the seasonals may have been a head wind here and not seasonally adjusted terms employers added almost a million jobs and number two, i think there's strong evidence that labor supply is an issue given the big increase in average hourly earnings alongside mildly disappointing job gains, and that increase was also concentrated in leisure and hospitality which is the lowest paid sector where the labor supply issues are probably most pronounced >> right participation, again, challenging. were you surprised that we went negative a little bit on it?

and do you think it's tied to some of the other data we've seen that suggests people are less interested in going back to the job they had before, period? >> yeah. i think it's another data point in support of the idea that labor supply is an issue at the moment and i think the household survey was consistent with what you saw in the establishment survey. also somewhat weaker than expected job gain despite the bigger decline in the unemployment rate. i think it makes sense what i take away is that a lot of these issues are probably temporary as we go into the fall, we're going to probably see a significant increase of labor supply, the pandemic continues to recede. schooling is going to be in person next year, and the unemployment benefit top ups are expiring over the next few months so i wouldn't say this is a

major source of concern in terms of our ability to recover, but for these reasons, i think it's taking a little bit longer in the labor market >> some of the changes you talked about coming into the fall where the labor market is concerned, but when you see average hourly earnings up .5% month over month right now, and you're hearing about the shortages in the meantime and wage pressures for companies looking for workers, how sticky is that when you see those types of increases and how does it factor into the bigger, broader inflation conversation that we continue to have here on this network? >> i mean, my view would be that these are more short-term issues, and the increases are going to diminish as we go into the fall that doesn't necessarily mean that the level goes back down quickly, but i do think that we'll probably see more muted wage increases i think at the margin, it's probably a factor that is going

to push prices somewhat higher, but the question is i think really how long-lasting is all of this? i mean, if we had reason to believe that these supply issues were going to last, say, well into next year, i think it would be a more serious concern over the -- if it unwinds to a significant degree over the next few months, then i think it's just probably less of an issue, especially if i think about this from the perspective of monetary policy which is always going to operate on a somewhat longer planning horizon >> yeah. from a fiscal standpoint, do we need more stimulus we're talking about infrastructure, social safety net changes, something that could be up to, and i suspect not this high, but up to $4 trillion in additional spending this year. does the economy need it how does that factor into this conversation >> well, that $4 trillion proposal is spread out over basically a ten-year period.

so that's a very different type of program from the american rescue plan and other programs that came before it. it also will be at least in large part, financed by tax increases. so i wouldn't really think of it as stimulus so much, but really more as structural changes in the way that the government operates and that's a different discussion i think we do expect a significant part of this to pass, but nevertheless, we expect that fiscal policy is going to be a lot less stimyoulative in 2022 than in 2021 in the fiscal impulse is going to be negative the impulse to the growth rate is going to be negative. so the economy is going to slow a lot as we go into 2022, and that is -- >> janu -- >> that's a reason --

>> the economy and our recovery. >> let me interrupt. here's the president >> this morning we learned that in may our economy created 559,000 new jobs unemployment rate fell to 5.8 %. and wages went up for american workers. that means we have now created over 2 million jobs in total since i took office. more jobs than have ever been created in the first four months of any president in modern history. eight times the rate of president reagan the unemployment rate is below 6% the first 14 months, first time in 14 months we saw the largest decline in the number of long-term unemployed many more than than entire decade, in the last ten years long-term unemployment dropped by the second largest amount ever recorded. not only that. but the signs of further progress are already here. this report is based on a

weekly -- a week in early may. that's how they determined the job growth or loss we have growth and -- and that week in may, we only had 35% of the adults fully vaccinated now we're still -- they were still all wearing masks. since then $21 million more adults have gotten vaccinated making it easy for them to return to work safely. the progress is turning our economy out of the worst crisis in 100 years it's testament to the new strategy growing the economy from the bottom up and the middle out remember, when i took office in january, our economy was in a tail spin. job growth stalled covid was raging average initial claims for unemployment insurance were over 830,000 a week

now the claims have fallen below 340 -- 430 thourkt before i took office, almost 24 million americans were going hungry remember those long lines of cars, miles long people waiting for just a box of food to be put in their trunk? that number has already dropped by 25% still too many, but progress before i took office, independent experts were projecting that the american economy would grow by 3% or 4% in 2021, this year this week the organization of economic cooperation and development, so-called oecd which includes the world's largest economies in the membership, and has been one of the leading bodies analyzing economic growth worldwide in individual nations increased their projection for u.s. economic growth this year to 6.9% in 2021 that's the fastest pace in

nearly four decades. in fact, the u.s. is the only major economy where projections of future growth are stronger today than they were before the pandemic hit in 2020 and in may, manufacturing activity was nearly as strong as it was in more than 15 years stronger than -- in 15 years no other major economy in the world is growing as fast as ours no other major economy is gaining jobs as quickly as ours. and none of this success is an accident it isn't luck. it's due in no small part to the cooperation of the american people in responding to my effort to get covid under control. wearing masks and getting vaccinated it's no small part to the action of providing the american rescue plans. underwrite the vaccination

effort, enough vaccine supply for every single american, more vaccinators, people to put shots in the arms, and more vaccination sites. and now 52 % of american adults are fully vaccinated 75% of our seniors are fully vaccinated and the american rescue plan delivered economic benefits directly to the american people. because of that law, more than 167 million of those rescue payments of up to $1400 have gone out to individual families. a recent study, the census bureau data found just how much the checks mattered. they drastically reduced depression according to the study. anxiety, and hardship for families more than 40% fewer families struggled to afford food, rent, utility, car payments, student loans and health care expenses

small businesses and restaurants were getting killed. now we're delivering loans and support they need to reopen and to stay open schools are struggling to reopen so we made vaccinating teachers a priority we delivered schools the much support they needed. state and local governments had to lay off tens of thousands of educators and first responders many are now back on the job thanks to the rescue plan. in fact, in may state and local governments added 103,000 education jobs returned them to work. these funds are continuing to get out this month to support state and local governments which will help get more people back to work small and medium sized businesses are now able to take advantage of a special tax credit called the employee retention tax credit it provides businesses a generous tax credit to retain our hire more workers. through our restaurant

revitalization fund, we anticipate being able to help over 100,000 hard hit restaurants, stay open or reopen and beginning next month, most families with children will be getting a tax cut which will be deposited to the bank accounts every month. we know that access to child care is one of the biggest barriers in the way of parents going back to work our administration is delivering $39 billion in child care relief to help child care providers get back on their feet, the providers, and serve more families and this month our economy added nearly 20,000 more child care jobs that weren't there last month. in fact, allowing parents to have access to get help. and temporary boost in unemployment benefits that ended, that we enacted, i should say, helped people who lost their jobs through no fault of their own. and who still may be in the process of getting vaccinated, but it's going to expire in 90

days that makes sense it expires in 90 days. so sum it up, covid cases are down covid deaths are up. unemployment filings are down. vaccinations are up, jobs are up wages are up, manufacturing is up, growth is up people gaining health care coverage is up and small business confidence is up america is finally on the move again. as we continue this recovery, we're going to hit bumps along the way. of course, that will happen. we can't reboot the world's largest economy like flipping on a light switch there's going to be ups and downs in jobs and economic reports, but we're going to be a supply chain issues and price pressures on the way back to stability to steady growth in the coming weeks, my administration is going to take steps to combat these supply constraints, building in the work we're doing on the computer

chips. that is we're providing more computer chips to be manufactured here in the united states, so it doesn't slow up the manufacturing of automobiles, for example everyone needs to get their shots, though. now is the time to accelerate the process we've been making. now is the time to build on the foundation we've laid. because while our progress is undeniable, it's not assured that's why i propose the american jobs plan, and the americans family plan. for generational investments we need today, we need to make those investments today to be able to continue to succeed tomorrow we have a chance to seize on the economic momentum of the first months of my administration. not just to build back, but to build back better. this much is already clear we're on the right track our plan is working. we're not going to let up now. we're going to continue to move on i'm extremely optimistic i hope you are as well, and may

god bless you. may god bless america and protect our troops thank you all for being here this morning >> infrastructure talks. >> i'm going to be having a talk this afternoon i'll report after that >> are you expecting -- >> i'll tell you after i meet this afternoon >> that is the president fielding at least one question about a meeting with a senator on infrastructure later on today. but broadly, talking about improving trends in jobs, vaccination confidence, manufacturing output and wages taking some credit but also saying it's due to, quote, the cooperation of the american people jan is with us from goldman sachs talking about the jobs number we can react to the president, but one question is what it sets up powell to say on the 16 th, and what that means for the taper discussioned the market is focussed on.

>> i think it's not going to change a lot, this report. i think it will probably get some people who are on the hawkish side of the debate saying that there's another big wage increase here we had obviously some big price increases in the cpi and pce report, and that should mean we should get on with the taper discussion, but i think the majority and the fed leadership are probably going to say that a lot of these issues do look more transitory and that's true both in the price numbers and in this jobs report, because it seems to be driven by temporary labor supply issues so our expectation is that the discussion is only going to gather pace slowly and the taper announcement comes perhaps sometimes late this year and the tapering starts in early 2022. there's obviously some uncertainty around that, but i

think that is the broad timeframe that we've been looking for and we haven't made any changes to that. >> jan, we appreciate you sticking around. a true gentleman we love jobs friday with you >> thank you when we come back, a big show coming up on tech check the "techcheck," the chiefs of doccusign, asana and pager duty at the top of the hour close to session highs here with the s&p 4222 the s&p 4222 don't go away. wealth is saving a little extra. worth is knowing it's never too late to oo early. ♪ ♪ wealth helps you retire. worth is knowing why. ♪ ♪ principal. for all it's worth.

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never be afraid to embrace yourself i took so long to come to the conclusion of who i am and held me back trying to fit someone else's mold. i do not do that now do not be afraid to embrace your identity it's who you are and what makes you so special and nothing can take that from you >> that was ashley turner honor of pride month david, taking a look at some other asset classes that have

been late, very volatile. >> we haven't really mentioned bitcoin. let's take a look at it. yeah, it's on the move isn't it always down 4.5% and once again, there is also that elon musk effect tweeting a bitcoin hash tag with a broken heart emoji and a meme with a couple breaking up that references lyrics from a lincoln park song. i don't know if you have more for us on the inner workings of the tweet. >> no, but i like it's a linkin park reference having come of age with that band the pressure we're seeing there is a concern, the u.s., the biden administration looking into crypto currency's role and ransomware attacks, especially by the naysayers of crypto currencies, something pointed to is it's role where we've had a lot of news around additional hacks, jbs, other disclosures

there as we see cyber security threats increase or at least the disclosures around them increase where critical infrastructure is concerned. bitcoin 36857. ether down under pressure even though it's been an outperformer until -- until late versus btc. >> you know it's funny because we have not focused this week as much perhaps as we might otherwise have on these continued ransomware attacks and just the continued -- >> digitalization of everything comes with these -- >> cyber espionage taking place. >> unfortunately. >> as well from china and it continues to be such an important story for us to be aware of, makes you wonder sometimes whether there is perhaps even more coming as for the broader market this morning, we're up, you know, 0.7% the nasdaq is out performing as well we've talked so often, of course, about the meme stocks but there's been sort of a level of speculation and some other

names we haven't seen for a while. i noticed shares of lucid motors have had a very good week. remember spacs, they've come to life it's been a while. every friday we go over the spac filings, that slowed dramatically, but it's been coming back to life a bit. things have been clearing the sec. we talked this morning about bill ackman's bizarre spark and spac, delivering it to shareholders it's complex beyond that we have seen sort of new speculation in the market at least in certain areas other than the meme stocks amc and other meme stocks as we pointed out have risen dramatically this week, a number of them, leaving many to wonder what lies ahead for the retail investor, not on reddit. the founder and ceo of asadina capital and testified before the banking committee on gamestop, robinhood and the state of retail investing

what did you want them to know and what is your takeaway from the latest run-up in amc >> thank you for having me this morning. the way that we're looking at it from the perspective of the everyday investor the meme stocks aren't needing additional regulation as long as they're disclosing the risks to investors. amc's filing this week is full of caveats with them basically telling investors don't buy our stock right now. i'm not sure the regulation of the stocks themselves are what's needed it's more additional regulation of the financial markets because with this amount of volatility we're finding that there's a loss in confidence and that could result in a loss of participation in financial markets which harms everyday investors. we're doing what we can do to add break to the high frequency trading acting as an accelerant.

>> in this name in particular, i guess, amc, feel free to disagree, it does seem to be the reddit mob to some extent. my twitter feed it's about buy it, keep pushing it higher, keep pushing it higher. nobody discusses fundamentals in any real way because if you were to do so you most likely have to make an argument the stock should be worth a great deal less. >> that's true amc itself is saying their market price doesn't reflect any dynamics related to their underlying business or the industry fundamentals as a whole and so kind of the way i'm looking at it, what more can you ask of a company when issuing stock. the company is disclosing, look, we're in a bubble here and we're just trying to reduce the costs to us as getting additional capital to fund the functioning of our business. the problem here is not that we have these run ups there's going to be run ups whether reddit or not. the problem is when there are other forces within the market

like high frequentsy trading that really make the whole situation astronomically worse. >> rachel, can we say yet whether we have this new class of -- this new generation of retail traders, retail investors, day traders, in the market and likely not to go away >> i mean, it's a little difficult to say that. this started since january and we feel like time has sped up since the pandemic, but i think you need a little bit more time before you call it a new class of investors what i'm seeing is smaller investors feeling like power is out of balance in the financial markets and that large hedge funds and institution investors are the only ones who win. over a decade ago it was the same sentiment that started the esg, the sustainable evolution we're in now it's too early to call it a trend. >> asg has come a long way from that thank you. appreciate it.

>> thank you >> another look at the markets as we continue to be -- having a fairly good week but up 12.4% on the year, outperforming the nasdaq and the key is going to continue to be the rotation taking place between growth and value. >> pretty incredible when you put it into context like that. nasdaq the out performer up 1.5% that's going to do it for "squawk on the street. have a great weekend "techcheck" starts right now >> finally really did it. >> you maniac! you blew it up