good friday morning. welcome to squawk on the street. aim carl quintanilla morgan brennan the jobs number for july, 943,000. that's the biggest gain since august of 2020 with positive revisions. unemployment down to 5.4 that's a post-pandemic low and bonds reacting, 10-year now above 1.28 really interesting stuff going on here, david, as it appears --

at least more chatter maybe that 1.12, the double bottom on the july low would have huge implications >> 1.12 where we were. of course the inflation debate rages. will continue for some time. this will do nothing to sort of snuff it out we lost 22.4 million jobs in march and april of 2020. we recovered about 16.7 million. the 943 number was above estimates. hours worked, looks good and wage gains significant, at least above 5% year over year >> labor participation, though, still stubbornly stuck at 61.7%. upward reredemptions in job gains both june and may. i think speaking to the fact that more people have been come back to the labor market than perhaps previously anticipated, as you mentioned we still had millions of people out of work. gains in leisure and

hospitality, 380,000 positions for the month, of which 253,000 came in at bars and restaurants, again also speaks to the fact we see reopening, also schools and public education on the local level too >> you can obviously see the impact on futures. minute by minute over the last half hour or so. nasdaq took a ding as the emphasis is clearly on some risk-on, some value over growth, reopening trades coming alive against. then of course the argument about what the fed says about this in the coming days and weeks. jackson hole, of course, right around the corner, david is taper now even more of a certainty as we have not just the likes of bullard rg aing for faster taper but high profile senators joe manchin saying look inflation is a risk >> manchin's comments getting focus. peter burrow uls put puts out a note fed run out of excuses and qe

going full speed ahead we'll hear about that in terms of qe and why we continue at this point >> yeah. i mean, you just look at the housing market, right to be to that point it's been on fire you can talk about years long inventory shortages coming to ha head now but in general to see home prices and rent prices right back to the inflation debate when you see increases in terms of living expenses, those are stickier the way wage increases are too for example versus the transitory things like commodity prices >> indeed. and then it might actually give us a little more of an eye opener whether or not the states that ended the unemployment supplement >> yes >> ended up sending out more resume mays. talked about it with im jed. but maybe this is an answer >> it's been a debate now of course we have the wrench around delta and the fact that covid cases increase, what looks like into the fall as well. for more on the market's response to the jobs numbers, we're going to bring in diane, chief economist at grant

thornton preponderate david kelly chief global strategist at jp morgan. diane, we saw the upward rerevisions the last couple months how it speaks to strength, maybe stronger than previously expected >> it's terrific and does actually put the fed into taper mode they need to see august, the delta month, that said where the delta variant has had the worst spread is areas we have seen less jobs search than areas that didn't have -- higher vaccine rates. but that is going to be the big determinant. even the most dovish on the fed, weller -- governor weller already argued that these kinds of job gains two months in july and august would be enough to justify the tapering talk for september announcement and i think that's what we're focused on in opens the door to that. there are a couple of things

important in the nuances of the data yes a slight tickup in the participation rate, some draw downin the long-term unemployed still elevated but that was good because people step up and show up to be hired. but on the other side of it, the places where we saw participation rate actually recede a bit and on the sidelines were blacks and hispanic women those were the hardest workers early on, the most marginalized. this is what chairman powell was talking about needing to have a hot economy to bring the worker the most marginalized out there back into the fold >> david, want your thoughts on what this means for the markets here and not just equities but as carl mentioned, the fact we see the yields on 10-year creep higher too >> yes, and they're still extraordinarily low. if you look at the 10-year tiffs market going into that, negative 1.1% in real terms a good very, very low bond yields and frankly offside here.

the economy is recovering yet. i get it the virus is mutating .the economy is mutating adapting also finding way of growing back recovering through the pandemic. i expect the august numbers will be more challenging because of delta. but then delta will diminish somewhat i think the reopening is keeping going. we're growing at some shall somewhere north of 5 or 6% in real gdp three times as fast as the long-term trend growth rate of the u.s. economy barreling towards full employment here and need to get to a normal place in monetary policy markets positive for equities but there is a rotation from growth to value. i think it's a time when you have to really look at valuations because interest rates won't be this low that much longer. >> hmm diane, i'm curious, we can talk about the fed and what the monetary response is going to be to the data we've got, including this morning's report. how about the fiscal response. we see the infrastructure deal

being hashed out right now in the senate and then of course the $$3.5 trillion package behind it. >>yeah, as far as those go, we do see even with those in place, it takes a long time to get infrastructure projects up and running. frankly we are marking down the forecast because much of the stimulus dollars weren't actually spent that were allocated, sadly a lot of it foreign. some of the the things aren't showing up that were allocated the fiscal stimulus is not as much as we thought but then it's being shifted a little further the cbo marked up the infrastructure package saying it will add 256 billion over the next ten years to the defends. that's pretty small in the sort of scheme of things, given what we've been through but i think it's an important point that david made is that we are barreling towards full employment that is something that we have to think about i am worried about more of a boom bust cycle given how slow the fed has been to deal with the taper situation with its

asset purchases and what could be it is deliberately allowing the company to reopen, we want that to happen but i think the heat is going to linger a bit you noted earlier the residual effects in shelter costs into next year. and i think we're going to have more residual heat the fed has to deal with which could set up more of a boom bust cycle. that's what i'm worried about now >> that's interesting. david, your point about businesses learning to live with the virus with the variant at least is interesting, because there is a growing sense that if anything it's going to delay our recovery not reverse it. but there is ongoing discussion about the impact on, say, asia, how that impacts supply chain difficulties and, hence, inflation, especially as it pertains to autos, semiconductors how much do you worry about that >> is having an impact right now. the reason growth wasn't strong in the second quarter is because really we're not producing vehicles we've got -- down to 35 days worth of sales that has slowed the economy

right now. but i think the businesses will adapt. i think every auto maker is scrambling for chips and there are ways of production them, the ways of finding them i suspect the supply chains will get knitted together again, despite the delta variant. i think we'll find ways of doing this, that means the inventory rebuild. while i grow with diane that fiscal is a little weaker than heretofore, i think we see a big inventory rebuild adding to growth going forward so the economy adapted all the through the pandemic it's adapting now. we have to watch the speed and heat that the economy is creating >> diane, i want to just drill down briefly on your boom/bust cycle idea what's going to get you particularly concerned then, if we don't see qe come off any time soon? what else >> that is one of them i think the other issue is david makes a good point i expect a rebuilding of inventories as well. i know home builders out there unable to get appliances through

wholesalers going to home depot and buying retail. that's giving the supply chain something we have not seen in a long time. that's the impetus that orders are even stronger than what they are right now. and to could actually cause more of a bull kwhip kind of situation in inventories which pushes up economic activity and then we have a bit of a more crash as we find out demand isn't quite as strong on the other side of it another fact that i think is important out there is the decoupling delta has done. dividing the world between the vaccinated and unvaccinated. i agree with david we are learning to live with in the developed world. the developing world has struggled with this. i worry that variants are going to disrupt supply chains more. and in a world with more disruptions to supply than demand, that could be more of an inflationary kind of world where the fed has to react more to it and create and over -- risk

overshooting on raising interest rates and swrg to actually extinguish inflation, something they've not had to do in decades >> we could just do an entire second segment focused on supply chain issues and inventory rebuilds and what all of that means for the markets moving forward. but we are leaving the conversation there for now diane and david. thank you for joining us this morning >> thanks. >> we have to touch on the roller coaster ride that has become robinhood, the stock rebounding the market in the premarket after tumbling on the news of filing to sell shares. thanks to the midweek surge still up more than 45% since the debut. we started the week guys at 35 we went to 85 on wednesday closed at 51 last night. and clearly got are going to get back this morning judging from the premarket. david it's hypervolatility >> one of the stranger initial public offerings we have seen in terms of after market price. remember it broke syndicate bit

right away it was not a particularly well bid syndicate. and -- and then it's been as carl said all over the map of course, become a meme stock, didn't it at first then it did a few days later during the course of the week. and then insiders took the opportunity printed at 85 at one point maybe saying this is the time to get out of shares. 98 million let's call it file to sell but, morgan, hope springs eternal i guess amongst the memesteres in particular >> as we said earlier this week, the meme mania goes meta, right. i think it's telling i realize insiders are hanging on to positions in the stock but the fact that they are able to sell some of the shares and are actually actively looking to do so is very telling when you see the stock trading at these levels and all the questions there were about valuations even before it went public as well.

it is certainly one to watch especially as more analysts initiate coverage too >> it will be interesting to see where we settle over the long term >> um-hum >> i think to jim's earlier point, how much you take off the table if you're still looking at a gain from ipo day, right >> and we always tree and keep an eye on some of the other so-called meme stock gme and amc in there >> amc reports monday. i know jim wants to hear what adam aaron brings to the call >> yeah, i know. adam indicated he might be willing to come on adam, public invitation if you want to come on after earnings, love to hear from you. ceo, amc >> yeah >> save me a phone call >> join us >> it's a main avenue of communication poking on the show >> absolutely >> last night the fourth episode of jeopardiy featuring david as guest host listen to the highlights >> we turn to the champion who

came in with 23,000 -- what did you write down you crossed out mt. rushmore and wrote in the correct response. what is the hoover dam of course the former president was quite unpopular due to the depression and what did you wager you wagered $3,000 and that takes you to a one-day total of $26,000 you are the jeopardy champion. >> it's been a very exciting week >> it is, you know, matt is now many days champion people of course i hope will tune in for my final night and see if he can continue moving up the leader board of all-time winningest contestants. he seemed to learn a bit about final jeopardy remember the game before he went 37,000 and i watched his potential winnings going from almost 80,000 to 6,200. that was painful of course also from the charity that would have gotten matched if he won last night he only went with

3,000. he is quite a champion and getting a large following online as well. >> are you guys in touch >> only via twitter >> really? >> yeah, he has been tweeting. and occasionally at me and so i have communicated with him that way otherwise no >> kind of makes you wonder, historically how much the host gets involved or establishes relationships with -- at least the high profile contestants >> listen, we did -- we have obviously done five shows together you do get to know somebody in a way that you certainly don't from the contestentown)s who come and go quickly. there is -- but there isn't much chance that show is so tight. the banter at the end when the running the credits that's basically the only time i talk to him which is good job or my, god, why did you do that? >> i want a hot mic on that part i want to hear what they say during the credits great stuff. look forward to tonight. david's final night hosting. look at futures a slough of

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still to come this morning white house reaction to this morning's jobs number. we talk to labor secretary marty walsh joining ups live after the opening bell in the meantime look at the premarket leaders op the dow won't surprise you to see the

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well big changes may be on the way for the tax code the target executives at hedge funds venture capital and private equity robert frank here to plain robert >> good morning, david this is a loophole that never seems to die president biden proposed eliminating the carried interest treatment for financial partnerships but democrats in the senate now going after an even big are loophole tied to carried interest that is deferred taxes so along with paying a lower income tax rate on share of profits. hedge fund and private equity

partners also benefit from deferring taxes for years or even decades this bill proposed by senators widen and sheldon whitehouse would eliminate deferrals altogether so these two changes together mean they would pay ordinary income rates of 40.8% on their carried interest and they would have to pay it every year closing the two loopholes together would raise so 63 billion over ten years compared to just $14 billion if you just close carried interest senator white house saying in at a statement, quote, americans have had enough of hedge fund tie corns using the carve-out to pay lower taxes than their drivers. but accountants for hedge fund managers say the changes could amount to an unfair tax on unrealized capital gains that would be the first ever for the tax code and because partners need to sell some investments or could have to sell some investments to pay those taxes every year, it could actually lower the value of the funds and maybe even

impact outside investors as well guys, guaranteed, there will be a fight over this. >> there always -- there always is now, you know, a couple of thungs the changes in the 2017 tax bill did extend the time period, i believe. makes it less likely hedge funds take advantage of the the carried interest as opposed to private equity which hold longer but wouldn't raising cap gains fix it the what biden proposed along at way almost as high as where income taxes are >> yeah that -- you're absolutely right the tax cuts and jobs act extended the holding period to three years for hedge funds. that didn't matter because most hold it longer you're right if we make capital gains taxes equal to ordinary income at 43.8% whatever it's going to be, this eliminates carried interest altogether so this is sort of an unusual proposal

i guess this assumes that maybe you're not getting that equalization there have been a lot of people, senator manchin included, that said, we're not raising capital gains rates to ordinary income rates. maybe up to 28% or something in between. so this sort of supposes that you don't get there on the capital gains increase and therefore you would still have to close carried interest and, again, the real money with carried interest is not closing the loophole but eliminating the deferrals. and you're talking about 5 times the amount of revenue you raise from getting rid of deferrals versus just carried interest >> yeah, you try getting past steve schwartzman. he is a one man gang that guy. never going to do it robert, thank you >> yes >> robert frank. >> we're getting the opening bell in a couple of minutes as we put the busy week to bed. on the jobs now dow futures up 11 don't go anywhere.

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the opening bell brought to you by nuveen. responsible investing. >> tremendous demand going into the summer and there still is quite strong demand but certainly on the edges delta

has had an impact. it's had an impact on whether -- countries that closed down like australia to other countries that imposed new rules about how you cross borders. and certainly it puts fear in the mind of certain travelers >> that's expedia ceo peter concern on squawk talking about the impact of delta on travel. the company posted a bide are than expected loss street was looking for 65. revenue was up but talked about continued softness in international, continued softness in corporate. as he said there, july has been impacted somewhat. we have seen some backwards movement in july >> it's been interesting, because obviously we have this gangbusters earnings season in terms of the numbers for the last quarter but really a mixed picture in terms of what companies are come out wsh especially consumer facing companies coming out saying about potential impacts from delta through the rest of the year and in the outlooks we did hear from expedia

also something from similar from beyond meat, uncertainty around delta, also labor issues as well dinging the guidance for that company too. more conservative orders from restaurants and the like it's something to watch as we continue to get results from companies and more ceo commentary >> yeah, i continue to sort of, you know -- the debate around return to business travel is also a theme not just for expedia, obviously where corporate is important but not as important but for the airlines and everything else. when are we seeing the robust return not just the office but executives getting on planes to the extent they once did very unclear whether we'll see levels like we did pre-pandemic. but certainly there is expectation that things continue to come back somewhat >> when i spoke to look heed's now former cfo last week one one of the things he mentioned in terms of the the cost cutting efforts is that they are reducing business travel by 25%. some of that just won't come back at some of the companies as

we see the cost cutting measures but which speaks to again with all the uncertainty around delta zoom stopped being up this week too >> yeah, definitely yesterday with blackrock and amazon and microsoft and wells, pushing back their return to office. companies are trying to adapt and stay on top of obviously rapidly changing developments. there is the opening bell. cnbc realtime exchange the big board. amt international a financial group in hong kong celebrating the second listing anniversary also celebrating recent a ipo. i know we're talking some virgin galactic in a bit. but 450 k. you'd pay that for a trip to space >> if i had it lying around somewhere, like -- it's incredible i mean it's sort of in line what i think analysts had been anticipating in terms of the fact that we would see increase in those ticket prices

but they did announce space did, virgin galactic on the earnings call did announce that the ticket sales reopened. they expected repeat customers at 450,000 dlarps that's double what they sold the first 600 reservations for a number of years ago. also announcing the next test flight is revenue generating for the air force happening late september. another test flight after refurbish mts and updates to the vehicles and commercial service expected to launch later next year. so q3 of next year the time line slipping which is notable since blue origin is operational and working on paying passengers later this year. something i would note boeing, et other name we don't talk about much when it comes to commercial human space flight. another black eye for the company given that they are having technical issues with the star liner capsule that is a program that they have taken charges on in the past they were looking to launch on

tuesday. that was scrubbed unclear when or if that is going to get off the ground in the coming weeks because the launch window closes rapidly too >> the banks we definitely have to hit on. goldman 390s, just a couple bucks away from all-time high. jpm is revisiting its 50-day for the first time since july 12 david we asked jim earlier in the week why the bank shares hadn't reacted more to the decline in yields? what is it complacency, investors being patient. if they were patient they're rewarded to. >> yeah they are net interest margin is something the market focuses on. he with you see treasury conflicts decline. banks take a hit did not in the week they are up bikinisly after earnings we pointed out the not much many reported what we considered strong numbers but most stocks in question here actually went down in the days following those reports. morgan, but overall it's

still -- goldman sachs up 47, 48% for the year at this point remember they have a lot of focuses on asset gathering and what they consider permanent recurring fees from permanent capital. and then marcus, we don't want to lose sight of that. i don't know if they'll pay more as we get to 1.2, 1.25 at jp morgan i get 0.01 i'm happy with that >> incentivizing saving >> it does >> financials are still -- they're the best secretary they are the s&p year to date energy still hanging on to gains there. we should keep -- we should note the fact that we have seen crude coming off crude is actually on pace for the worst week since october despite we're in the green today. i think coronavirus concerns and what that means to future need and consumption of those types of energy products but real estate. and i know i've been all over

this david having an incredibly strong year we've been getting strong earnings report on the commercial side and looking at zillow reporting after the bell last night, strong results there as well on the housing front, especially as the hope flipping business really starts to take root. >> actually there were a number of companies that raised the guide. zillow was one yelp, draft kings. but you look for q3 revenues higher ebidta, because that requires new investment >> all of this question marks swirl around the moratorium, eviction moratorium which he know has been extended in a number of markets by the cdc as we look at that, parse through the economic data, jobs report, et cetera what that looks like coming in the fall too >> guys, one m&a transaction i'll highlight this morning, because it's reflective what we have seen. and what is still a strong merger and acquisition market. not high profile names and large

transactions but succession of deals in the 4 to 6 billion-dollar range this morning stoernstone on demand csod is the symbol up about 14%, this after they grooe to a take private. 31% premium to the unaircrafted closing stock price. they say on june 1st that's some time ago but that was the first full trading day prior to when clear lake, the company that is taking them private, filed a 13 d in connection with a review process underway and it's a 40% premium as well to what they call the long-term -- last 12 months bwop for the company. there you see it carl, this company is a sass slaugss company and say this transaction represents another milestone in their amazing journey >> would you >> it has been amazing they had activisting they sold to silver lake and moirlts microsoft.

adam silver is a larged shareholder and behind the deal as well >> all right record high on the dow record high on the s&p as you heard by now, hiring did rise in july despite fears about the delta variant. companies trying to manage a tight labor supply for more on the jobs number let's bring in the u.s. secretary of labor marty walsh mr. secretary, good to have you happy friday >> happy friday and thank you for having me today. it's a good friday for the jobs number in america today >> it does remind me, we talked a few months ago on the jobs friday when the numbers were not as stellar, the conversation surrounding the degree to which hiring was being suppressed because of unemployment benefits you didn't think it was a factor is today -- do you think it's a bit of a relief because of hat >> i don't know if that's the case by i definitely think our economy is moving since president biden's inauguration he has added four million jobs to the economy obviously this is a good month 943,000 jobs in average of over

800,000 the last three months. it shows the economy is moving forward. and we certainly have work to do still. we're not where we were pre-pandemic yet so we have more work to do >> fits ratings is out this morning citing the same 800 number that you point out, the average since may. they say if we get another print near 1 million it's possible the fed could view the progress being made in the labor market recovery as being substantial. i obviously won't ask you to comment on fed policy. but at what point do you think we actually begin to move the needle where we need to think more about inflationary pressures than labor market recovery >> i think we have a ways to go with the labor market getting more people in to work we have more work to do here i think that that's going to be a conversation that we'll be having probably over the next couple months here when i come back on next month and seeing what we are doing. we did see earnings wage growth by 4% this month which is -- actually not this month but the last couple months which is a good number as well.

and we still see more -- we need more labor participation happening in the market and hopefully we'll be able to offset the inflation what we're seeing right now and look at it short-term hopefully >> secretary walsh, as we talk about more labor participation, based on all the data that you have at your finger tips right now, as we see some of the enhanced unemployment benefits roll off in certain states is that impacting the amounting of people going back to work right now >> we haven't seen anything that says that. i looked at the numbers before i came down on tv today to make sure when where the numbers came we haven't seen correlation in that yet we'll be able to see in next month's report a little better but there is no indication of that right now >> sorry go ahead >> yeah, no, you're not expecting sort of a further jump in september when a lot more of the sort of pandemic et related jobless benefits rollout roll roll off >> say that again. sorry >> you're not expecting to see an additional jump up in

employment when a lot of the pandemic related jobless benefits roll off? >> i don't know -- i don't know we'll see a jump off because of the pandemic roll rowing off hopefully we continue the upward trend. last night at 938,000 the number revised this month at 943,000 jobs hopefully we continue to see the upward mobility of people getting back to the workforce. we saw some gains this month in education, in government, in hospitality, leisure and restaurants, in manufacturing, so we are seeing some other sectors seeing larger gains which is good. although we saw the nursing home industry numbers go down which is concerning, concerning to me because of the cares economy >> as we see wages continue to grow right now, and we see this tightness, artificial or not in the labor market around that right now, we have borders closed, a lot of visas that weren't handed out again this summer season, at least from a

legal immigration standpoint, what is the biden administration strategy or direction on that? >> we worked hard this year on the h 2 b visas to increase the cap to get more workers in here with the visas unfortunately, there is still lots of coronavirus concerns around the country, around the world. and we're having conversations now to think about what's next year going to look like as far as the visa programs and allowing pathways into the united states of america some countries are not letting people leave the country some countries obviously have concerns again, i think we have to keep an eye on the delta variant, get the pandemic under control if you will we have to continue to encourage people to get vaccinated as we continue to move forward here. >> finally, mr. secretary, on vaccine requirements, united is going to require all of their workforce to be vaccinated by october. their memo this morning reads like this we have no greater responsibility to you and your colleagues than to ensure your

safety when you're at work and the facts are crystal clear everyone is safer when everyone is vaccinated. you got any problem with that >> no, i don't have a problem with that. i know the president doesn't have a problem with it i've been encouraging the president has been encouraging, the whole cabinet encouraging whyte quite honestly people to get vabs vaccinated keep yourself safe, your family the people around you safe >> mr. secretary, appreciate it very much on a day where jobs number was 943 k, much better than expectations. thanks very much see you >> thanks for having flee >> dow up 161 let's get to bob pisani >> happy friday, carl. 7 points in the s&p good enough for a new high about two basis points move in the 10-year. and talk about whether yields bottom yet good news on the overall on the jobs report. it confirms there is still growth out there maybe peak growth. but we're still doing well look at the sectors. and the mechanic is making sense

in terms of what it's doing. banks obviously having a good day as the yields move up. again you get the debate whether yields at a bottom cyclical, value oriented sectors like energy and industrial stocks doing better. and growth oriented sectors like tech are lab weaker. why? it has to do with the dynamics of yields and what the federal reserve does the key things about the jobs story is it confirms growth out there. that's what's important. now you've got the debate about whether rates are bottoming. remember rates bottomed back in mid-july or so we have talk about maybe bringing the fed tapering talk back again that's to be expected. the bottom line for stocks is this is generally positive for value sectors. a little less positive for tech sectors. the key story remains the delta variant. the narrative is it will slow but not derail the recovery. that's still very much intact. it's not clear if we go capture the last few days of july in terms of the job report and impact the -- the variant impact on jobs.

but it's certainly good news for what we've gone. in terms of the reopening stocks, travel sectors, norwegian had very good report, very rebust demand smaller than expected loss revenue light. carnival is up american up. united on the upside bank stocks bottomed, not surprising in mid-july when rates were at the lowest levels. they've been coming off lows they're stronger now again this is the big debate whether or not we bottomed in rates with people debating this earlier in the year. and were wrong on it we'll see if it turns out. amd just terrific. moved up all during the week a lot of debate about why but you see most on the weak side today. but remember apple, microsoft, these are all near highs nvidia had an amazing year to be expected a little bit when you get higher rates prospect usually impact growth stocks negatively delta is remaining the wild card at this point. we're trying to figure out the

impact the question is, will it change consumer behavior and to what extent even if there is no widespread lockdowns and no one anticipates that how much can consumer behavior change does the variant accelerate the peak what people really want, david, is traders want some sign that the delta variant is peaking unfortunately, it's just way too early to make that kind of call. david, back to you >> yeah, it is unfortunately bob, thank you bob pisani still to come here, draft kings getting a lift from the quarterly results. stock up 4.5%. we talk to the ceo about the business of sports betting but first it's time for the bond report of course on this jobs friday we've talked a bit about it. look at a one-week chart of 10-year where we are and where we've been remember the lows a few days ago. 1.12 as we move closer to 1.3% back after this.

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sfls an intrakay looking at again at 58 appear change on robinhood. moving to 85, closing last night around 51. we'll watch that one of the biggest stories of the week just days after the ipo as "squawk on the street" comes back

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draftkichks shares are jumping with a 26% increase, prompting the company to raise the four-year forecast and the stock responding positively. i just want to start with the nfl because you seem to get a lot of questions about thaten the conference call you just concluded. you talk about it being your holiday season when you reactivate large portions of your player base but you say right now you want to continue to be a bit cautious about the nfl season why is that? >> it's just such a big sport that has a material impact on our numbers. like everything we do, we want to see data before we make assumptions that may end up proving to be off. and last year we saw such a

strong customer acquisition and retention. everything was up last nfl season at recrtd levels. it's also a bit of caution, saying can we really top that or repeat that again? i hope so but we'll have to wait and see. >> so, what kind of data will you be looking at when it comes to that? is it about everybody being back in stadiums or there are other things you'll be looking at? >> we pretty much know how the season's going to go after the first week or two. you get that kind of first week or two of data and everything from there is pretty mump, at least in past years, been right on where we thought it would be. we'll know how things are going to look for the rest of the nfl season >> you say you've seen no discernible impact from the reopening of the economy so, is that going to be a new normal for you they're going to be continuing to do the things they were doing

when they were at home on your platform >> i certainly hope so one of the nice things about the world of mobile that we live in, and such a high portion of our traffic on the app, is people have the app with them everywhere they go i think as long as we continue to provide great experiences, our customers will stick with us and that's what we're focussed on doing and the reality is there's a lot of things we know is going on here it's hard to untangle them from new product features we're adding so, it's hard to know what's driving what but i think we'll keep seeing things go in the right direction. >> it's morgan we keep hearing we're in early innings, as more states continue to move to legalize more opportunities for business, more customers. but in a week where we see

caesar's putting more money towards its initiatives, penn, for example, as well it's getting more competitive, presumably greater marketing spend. what does that mean for your company? >> i think it first means we're in a pretty exciting industry. people aren't investing because they don't see the large opportunity. they see it. and i think you have to expect when you're in a new industry, there will be lots of competitors going after it and we're going to have to do a better job if we want to out compete them i'll note for the last two years, we've heard similar things wow, what do you think of all the new competition emerging and we've continued to do well against our numbers, continued to see strong customer acquisition. i think we feel if we keep doing our thing, we'll keep doing well and new competitors will help grow the overall industry, which is good for everybody. >> but will it include marketing spend sng. >> we look at our own ltvs and

payback periods and late the data do the talking. we think that's there best way, over a long period of time too, have the highest ratio and scale. that's what we're focusing on continuing to build. and we're not going to change our strategy based on what competitors are doing. >> kind of along those lines, i wonder where your head is in the amount of money they're going to gamble saveings rate is coming down, stimulus checks are ending how does that play in the overall model? >> that's one of the things we're looking at potential headwind we haven't seen any adverse impact though. i think it could be a sign there's a lot of room for customers to spend on our product. i think if that's the case, we'll see continued momentum and we need keep innovating on

products we're not competing just against the other gaming companies, we're competing against discretionary spend. if we can give them a better experience with their discretionary money, more people will choose to spend it with us. >> you're talking about things outside of sports. why do you think that's a real opportunity? >> we've done some research, our customers, we know, have heavy overlap. much like any trading collectibles, clelktables are a popular thing among our audience people like to buy them and look at what they think their favorite players are and things outside of sports too. i think giving a wide variety of choices to people in areas like general entertainment, could be a big opportunity for us and there's loads of room to grow

we have so many great athletes that are going to be on our platform with nfts, exclusively very soon. >> thank you for joining us. >> thank you for having me >> right when we come back, we're going to talk to the ceo of hanes brands as we got a record high on the dow and s&p. nasdaq getting pinched on the reopening play, di wennghat was a four-day win streak. this is sam with usaa. do you see the tow truck? yes, thank you, that was fast. sgt. houston never expected this to happen. or that her grandpa's dog tags would be left behind. but that one call got her a tow and rental... ...paid her claim... ...and we even pulled a few strings. making it easy to make things right: that's what we're made for. usaa. what you're made of, we're made for. get a quote today. i think you're going to like it here.

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hey, rick. >> yes, carl doing a final read on inventories, wholesale inventories, better than expected and consider this. from june of 2019 to june of 2020, we have 14 consecutive months of no inventory bills, from zero to minus 1.3 but now this is our 12th month of inventory bills, positive numbers, and that is a good thing. and if we look at the trade sales side of the equation, 2% better than expected and both numbers follow up

8/10ths. it's the midmonth number we toss so, these numbers are pretty good, joining what was a very solid jobs report and the market seemed to be reflecting those underpinings back to you. welcome to another hour of "squawk on the street. live at the new york stock exchange we're off of the initial highs but the jobs number was better than expected. banks up, yields up and sickliccals up, morgan >> we're 30 minutes into the trading session. expedia getting hammered warning of continued softness over fears of the delta variant. expedia's q 2 bookings did rise year on year, revenue nearly tripled as well. novavax announcing it will delay

submission of vaccine until the fourth quarter and saw revenue fall below the street's estimates. those are down 19.5% as well cautious guidance tied to covid-related uncertainty. those shares are down about 2% right now. and david, i'll kick it over to you. >> i'll take it. the u.s. economy adding jobs steve. >> a big, strong jobs number has some forecasters thinking that momentum is building in the jobs market could be more big numbers yet to come david gave you the top line, 943. 10 120,000 added in revisions maybe it's currently still a pandemic

and one-tick better as wages continue to surge. 61.7 up a tick but still depressed from where it was in february 2020 the idea that many workers remain on the sidelines, that's behind the optimism, depending on the impact of the delta variant. assuming the variant doesn't force renewed containment measures, we maintain the positive outlook in the past and see them recouping over 7 million jobs this year local education. that was a bit of a statistical quirk because there weren't a lot fired. so, there weren't seen as fired in the summer. health care coming back. doctor's offices are open. focus, go visit.

and plus one, i guess, for favor. doing jeopardy leisure, bars adding 253,000 hotels, they're back in business and rock and roll concerts, everything else going on, plus 53,000 the unemployment rate declined because of many who may have been called back in the leisure and hospitality business big numbers like these should make calls for the fed to ease monetary policy sooner rather than later >> you're really tuned into the rock and roll concerts, i'm sure, steve. when you break down the unemployment rate for the month, women, it's only 5%. we keep hearing we need to see schools open up, etc., etc., and yet we see this lower number how do you expalelain for that?

or does it throw a wrench in the argument in general? >> no, it doesn't because the idea is women have dropped out of the workforce yes, some women did come back, not as many as men the female participation rate was unchangeden the month. there's still an issue, morgan, but not one we need address until we figure out what needs to happen at the schools another aspect is women predominate in the service sector this was the hardest recession i recall on women of any that i've covered in 30 years or so because the service sector was so hard hit. usually it's manufacturing, housing that get pummelled in recessions so, they're coming back but there's a ways to go what are you telling people

who believe, not just today's number, is going to give osmore robust call atticus ks city, jackson hole >> i tell people to take the weekend off and have a nice weekend. the seconds thing is i think that it is growing you have people starting to speak out. waller has spoken out. and if you read between the lines of what rich said earlier this week, he's maybe losing a little patience with waiting on the transitory story it still has time to work out, carl if you get people coming back to work, you heard rick talk about inventories building that's part of the building and normalization of the reinflation story. big number next week cpi on wednesday >> and that's go tag get a lot of attention because there's not a lot else to compete with it.

in the meantime, united airlines making a big announcement on vaccine requirements and cancellation woes continue over its spirit morning, phil. >> good morning, carl. let's start first with united airlines the first major airline to require its employees, at least the u.s.-based employees, to be vaccinated here's what united is telling employees this morning about 67,000 will have to be vaccinated by late september, early october. it's partially contingent on doing full authorization on the vaccines if you are not compliant and you are a united worker, you will be fire said if you do not get vaccinated 90% of the pilots are currently vaccinated, 80% of the flight attendants are that's why they're conftdabout

that, while they're not giving this overall numbers vaccinated at this point, they believe they'll get to 100%. they're making it a clear mandate but it's not huge, heavy push in terms of a low persenltage are vaccinated at this point keep in mind that this is a vaccination campaign, if you will, by the company, in part, because they have seen what has hand in the past with the covid-19 virus in the fall, in colder weather so, they want everybody vaccinated let's talk about spirit because it's another day of wide-spread cancellations at spirit. they've come all too common place. the company canceling 33% of flights today. it has cancelled more than 1700 flights this week. last night the ceo, ted christy, did a conference call, trying to

explain what has happened. didn't give much of an explanation except to say we couldn't get ahead of it he said right now all i can say is we're very sorry for what happened they're reimbursing him. that doesn't lep the people at the airport or who have had a flight cancelled when you look at shares in the last week, not a huge reaction, guys by the way, spirit says there will be more cancellations over the next few days, as they try to get back on track >> it's a staggering story, especially when you factor in there weren't that many flights anyway, in light of the pandemic here's our road map for the rest of the hour goldman's jan will join us and the ceo's of kohl's and

sephora on reopening amid delta variant fears. and norwegian suing florida.

shares, one of the biggest earners yesterday. joining us to discuss the quarter, steve, good to have you. >> tlangs, carl, pleasure to be here >> revenue ahead

you guide for at least q3, although it seems you think the second half is going to be strong one thing i didn't see much of was disruption of supply chain >> really pleased with the quarter and ability to do this for the back half. the team has done such a wonderful job operating in this challenging environment we have right now and delivering results that we couldn't be more proud of so, thank you to them for a start. we're facing disruptions and challenges like other people but this is a time where owning your own supply chain is a real advantage. we own the vast majority of our manufacturing around the world it allows for visibility and flexibility. this is a time when lean ning io those things, adjusting on the

fly, we think is important we think we'll be able to meet the rising consumer demand we're seeing for our brand definitely there's challenges, disruption but we have an experienced team working incredibly hard, making the dapgz we do. >> giving the back drop on demand and cost pressures everybody is facing. what are you taking out in pricing? >> it's certainly a tool in our arsenal we think about we're try oog offset as many costs as we possibly can there's really two separate businesses we have our active work champion business and we're in the process of selling in spring, summer right now. pleased with the response we're getting from the retail trade. in terms of the other part of our business, we're working on that with our retail partners,

finding the right opportunities on their cadence of how they set their modulars in stores and how they plan to go to market. so, we work with them and haynes, an incredible value brand. the value we deliver is incredibly important we're going to manage pricing carefully and try to offset the inflation we're seeing at the same time. >> bras and shapeware all up triple digits. the fact people are buying more of the products to go out of the house, amid reopenings we're seeing so, how sustainable are these rates of groelgt, actually >> sure, thanks. we definitely see growth continuing there's no doubt about that but we're overlapping the shutdown from last year i don't think you're going to see huge percentages going forward.

i think the momentum we're seeing in active wear, the momentum behind the brands, i think, is going to continue over time one of the things we're doing as company is investing in our brands in a way we haven't in the past they've been underinvested in and a key part of our plan going forward, that we call full potential is to invest in these brands you're going to see innovation, advertising from us at levels you haven't in the past to keep the momentum going that's behind our brands today >> united the latest company to mandate vaccines how are you approaching it >> obviously we're watching the situation closely. we have a great team around the globe going to work every day and doing an incredible job. we're not back in our offices right now, yet, fully.

vaccines is something we're encouraging all of our people to do i think it's really important and no commitment on how we're going to handle it yet >> shares of hbi not far from an eight-month high appreciate the color we'll talk to you next quarter thanks >> thank you for having me appreciate it. fresh off a settlement, one lace hopes to rebrand itself thank you, johnny gilbert, everyone watching the up and downs on yesterday's show, it reminded me of the day job discussing the gyration of the markets. it was a tough final "jeopardy"

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welcome back to "squawk on

the street." the road has been anything but stable for the space start up. the company ousted the russian cofounders, after the federal government raised national security concerns. the valuation was dropped for the deal as well the sec forced momentous and stable road to pay a collective $8 million for misleading statements about the national security concerns. and launch plans were, essentially, put on hold joining us now, the new ceo is former undersecretary of defense who stepped into the role august 1st. and john, great to have you on we just went through some of the trials and tribulations, the drama for the company over the last 10 months now that you are the ceo, what is your first order of business as the company looks to go public later this month? >> i was attracted to come to

momentous and be part of this innovative small space company because of market trends i see emerging in the new space economy. now, clearly, providing stability, and a vision in direction moving forward, has issues is a very high priority for me as i mentioned in the new space economy, what makesit an exciting time in the space industry is you're seeing a real growth in the number of small satellites, which are becoming far more numerous. thousands plan to be launched in the coming years they're more capable and at the same time, launch cost to get to orbit that used to be such a barrier to entry is changing you have numerous space companies providing the launch services they're using larger and larger rockets. the combination of those things is reducing the cost per kilogram

but now it creates a need for what moments can provide with in-space transportation to move the much more numerous, much more capable satellites to the right destination to change how we operate on earth. i was attracted to do that i think with my background, i can provide the kind of stublts and leadership going forward to address the u.s. government's concerns which have to do with the national security agreement over seen by the defense department i'm excited about the prospect of this company being part of this growing space economy >> you bring a background as time at dog. but in terms of this recent sec settlement, gary, the head of the sec had this to say in the company's -- in the agency's press release around this settlement he says this case illustrates risks inherent to spac

transactions it goes on from there. so, given everything that's gone on with momentous, and i realize you're new to this job, has there been discussion about not going forward with this particular deal and looking author options >> we're looking forward from where we stand today and the settlement the company reached, under the previous management -- i only started in august but the settlement the company reached, we think, puts that firmly in the rearview mirror and something i'm excited about moving forward and leaving that behind, where it gets to be a smaller and smaller speck as we move forward shareholders have been asked to approve a merger, the spac, and we suspect that will occur this coming back. that's the deadline for it to occur.

we're optimistic about the future i think that there's an exciting and valuable -- value proposition the company provides, based on market trends the valuation was reduced as a result of the things you mentioned, which is the vesture of the previous founders so, a more attractive valuation with the type of technology we think provides the ability to meet these emerging space needs. that's where we think there's a value proposition investors will find attractive. >> i understand your perspective on that value and i see you had nothing to do with the previous problems this goes to morgan's question make the case. from my perspective, it's not clear this should be a public company yet. there are many companies i might say that about but given everything else this

company went through prior to your getting there, it's not clear to me. and you're asking the spac holders to approve it and say we're looking to be a public company. make a case why you should not wait a year to get your house in better order >> this is a time we chose to go public and the reason being. one, there's a market condition we're well positioned to meet is the company has technology that's progressing and that woenlt wait for us to decide later what we're going to do and one, the company's reached a settlement with the sec and there's a variety of factors that go into the reasons companydizeicide to reach those settlements. and one of the considerations was the timing of the planned merger with stable road and a desire to move forward with a

public listing they have deemed it effective and so we're moving forward with the planned merger and going public number one, we have a new ceo and management secondly a board of directors have been announced to include those that are going to over see our agreement with the defense department and the u.s. government, a retired admiral heading that group 367 that should also provide confidence and we're working hard to diligently implement that agreement. we think that's going to pave the way to get the necessary approves for our launch licenses and to put the technology we're

dev developing into action last thing is there has been no worthy progress. we put out a press release that the thruster, which uses water as a propellant, we're undergoing a extensive ground test game on the latest generation . the performance from the engine is similar to what we predicted it would be. anybody that knows technology, knows we still got to work on that but we're encouraged by what we're seeing so far >> the fact you're working towards launch licenses, how quickly do you think you can get them how quickly can you actually put this technology in orbit to potentially successfully test it especially since the last and only test was not successful, despite statements from the company, which is part of the sec settlement >> the technology is be dg vepped in things like i

mentioned with the extensive ground test campaign and i should add the company has produced two vehicles, that will transport the satellites they're in storage they went through an extensive qualification and ground test cannel pain to operate in space. obviously, we've got to get our launch licenses and the fact we have an agreement with the defense department that it will pave the way to obtain those licenses we're planning right now for next june to be the time period for a launch that would be the earliest that would occur. obviously, all of this is subject to the government making the decision to make the launch approve for us we think we'll produce the kind

of confidence, with the government, to lead to that. and i'm familiar with their con concerns, having spent a number of years in that area. i'm focussed on guiding the company to that success. two launch vehicles down the hall ready to go and we're going to build another two we can learn from and copt to evolve and develop. there's going to be twists and turns in the road ahead but we're encouraged by the progress we're making and promise to technology >> as we know, space is hard thanks for joining us. >> thank you good to be with you. >> keeping our eye on robin hood this morning session high about $61 we're just off of that we're going to talk to goldman after the break, whose forecast was not far from bei wngngro all the things, all around you...

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a jobless rate fell tee the lowest level, going back to 2020 and joining us this morning, looking for a little more than 1.1 million. good morning >> good morning. how are you? >> doing well. wondering if you see any hair on this print and to what extent it effected the overall number? >>. >> i don't see any negatives they were very firm. and we did get a sizeable boost from education there are seasonable adjustment distortions in that but that was pretty well known coming in. and that was one reason why we

and others have a substantial growth and across the different measures that gets us closer to the sort of levels that i think the fed's going to be looking for later in the year for announcement >> right i'll get to the timing on that in a moment. the broader question is whether or not you're sensing momentum in the job market. if anather close to a million-plus print is possible for august and whether or not labor force is able to meet that >> my working expectation would be it's not as strong as this one in terms of the headline number but i don't think you're going to have the same seasonal tail wind, coming back the education category, that's not going to give us another boost

but i think we will see very solid numbers, maybe in this range, maybe below this but i think there's room for employment, leisure and hospitality to come back and in other categories i do think labor supply is at the market, improving. and that's partly because the virus is having lesz of an impact and we're assuming and expecting that the delta impact is going to be relatively limited. and partly because the expiration are going to stimulates labor supply. >> how many are more structural or permanent labor force participation rate has been an issue for quite a number of years.

we were just having this conversation about women who have left the workforce altogether what is it going to take for them to seek a job in a more meaningful way right now >> i think obstacles and there's worry about the virus. but over time i would expect that to be less of a factor. schooling is a factor. and i think that going to be less of an issue once you get into the fall and schooling resumes, basically in person and then there's the disincentive effects from the benefits i think the longer term questions, there is some question whether we get exactly

back to the levels and it could take a while to get back to those levels if people have retirement, for example, they're not going to unretire however, that front loads retirement that otherwise would have taken place in the next year or two. it doesn't necessarily mean that it's literally a permanent hit to labor force participation >> jan, yesterday, your desk wrote we expect the directed impact of the delta variant on the u.s. economy to consist mainly of a delay, rather than major reversal and said the impact on asia does raise supply chain risks, especially for autos and chip-related business. how much do we need pay attention to the impact on the variant in asia? >> i think in asia, it's

definitely a first-order issue i mean, they're in lockdown. i think there are more concerns around china slowing more sharply, at least in the near term, because of this. it's a first-order issue for asia i think in the u.s. and europe, it's a bit more second order it's important for specific industries but doesn't overturn the more macro expectations it seems to me it's behind us. we have a new friend and that's showing clear declines now,

which would show up in the busy index. >> so, when he upped his year-end target, he mentioned lower interest rate. >> i think the risks on that are on the down side i do think that the current level of interest rates does look very low to us. i think that probably relative to some exaggerative concerns, concerns we think are probably not going to ultimately materialize in terms of the delta impact on the economy. but yeah 1.9% obviously, that's pretty significantly north of here. and as we indicated the rest of that are probably on the dune side >> so much to process these days, jan. great call

good to see you. let's get an olympics update now. hal. >> hi, david, good morning to everyone >> american sprinter, allyson has won more medals than any other female track athlete the most decorated u.s. track olympian, surpassing carl lewis. april ross and alix klinman win. and the u.s. women pflgsz basketball team will play japan after a 79-59 win against serbia it's the team's 64th consecutive olympic win, a streak going back to 1992.

and the u.s. has 97 medals, followed by china with 79, and russian athletes have won 62 medals hard to believe it's almost over, carl >> i know. we're going to watch the weather in japan after the break sephora-live at kohl's so you can quickly check the markets? yeah, actually i'm taking one last look at my dashboard before we board. excellent. and you have thinkorswim mobile- -so i can finish analyzing the risk on this position. you two are all set. have a great flight. thanks. we'll see ya. ah, they're getting so smart. choose the app that fits your investing style. ♪♪ ♪ someone once told me,

that i should get used to people staring. so i did. it's okay, you can stare. when you're a two-time gold medalist, it comes with the territory.

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a modern approach to wealth management. find your own andy at schwab. tailor made or one size fits all? made to order or ready to go? with a hybrid, you don't have to choose. that's why insurers are going hybrid with ibm. with watson on a hybrid cloud they can use ai to help predict client needs and get the data they need to quickly design coverage for each one. businesses that want personalization and speed are going with a smarter hybrid cloud using the technology and expertise of ibm. nice bumping into you. welcome back kohl's and sephora rolling out combined stores. 850 sephora's at kohl's are expected by 2023 courtney reagan, take it away. >> thank you very much, morgan

good to see you and great to be back with you and in the field with the ceo of kohl's and the ceo of sephora americas. so, i'll start with you. this was announced during covid. we still have in covid in the delta variant is raging, and it is causing new restrictions to take place why is now the right time to open sephora, where a competitive advantage has always been to try on makeup on your face >> let me just say this whole strategy for kohl's has been years in the making. we together have been working on the unveiling of this phenomenal experience for months and months and we wouldn't be so proud to literally, today in this moment is our very first store and they'll be opening 70 later this

month, on our way to 850 we're both omni channel retailers. and we've learned a lot about how to serve the customers there are customers in our stores we're operating very safe and comfortably. we're expecting, whether it's skin, hair, to be relevant to the sephora and kohl's kugsmer we have back to school, holiday and the real opportunity is in the years ahead. >> are you requiring vaccinations for your employees? >> we are not requiring vaccinations we have our associates in masks in all areas that are requiring them or hot spots. and we do a lot to encourage our associates to get vaccinated >> here we are sephor, the first one. is it going to operate in kohl's

as it does in other locations? can you try on the makeup? is the pricing the same? >> you're seeing the exact same experience that you would enjoy in any other sephora environment. i would say the quality of the store you're seeing, the upscaleness, selectivity is better than some of our own sephora stores quality, the assortment of brands, that is magical, the lightening, the experience of fun is better than any other salon or store >> and sephora's pricing has always been at a premium price point. should customers expect to be paying more now? >> that would be a brand decision this is based on brand decisions. so, some brands may experience exactly what you describe may

raise prices but we're talking about very small movements we don't expect massive movements. key products is pretty stable over the last five or seven years. we don't expect a lot of change, no >> and there's an ulta not far away target is doing partnership with ulta what do you think partnership is going to be like as more customers are cross shopping with kohl's and target >> first of all, beauty is a big industry so, there's room for lots of players. that being said, sephora is the best i mean, look at the shop 2500 square feet, no detail has been fehred. down the premium lighting,

fixturing, the training of the beauty associates. so, i couldn't be more excited or proud that this is our beauty offering for, not only the 65 million customers we serve today, 70% of which are women and all of the new customers this is bringing premium beauty to millions of americans who haven't had the access, the convenience. we're really passionate and excited about. >> so, you are expecting new customers to come in >> yes >> and and are you expecting customers that were kohl's customers? >> sephora tend to be focussed more on -- this partnership allows us to reach out to million dollars more customers but there's a huge part of demand for sephora many people want to experience

but we're too far away you bring sephora all over the heartland of america this is very exciting for us >> i have to ask you very quickly. now that some of us are able to take off back >> yes, the last two months makeup sales have grown dramatically skin care sales is strong. we have a strong hair care and skin care business but last two months makeup, tinted moisturizers and lipsticks are up dramatically. we are very proud for sephora to be ahead of a curve, as usual. >> thank you for joining us here to the congratulations on the first of the sephora shops inside of

kohl's >> courtney, great to see you back in the field. coming up, norwegian cruiseline moves to block the vaccine passport plan. to help our family's special needs... hey, graduation selfie! well done! and voya stays by our side, keeping us on track for retirement... ...giving us confidence in our future... ...and in kevin's. you ready for your first day on the job? i was born ready. go get 'em, kev. well planned. well invested. well protected. voya. be confident to and through retirement.

it is now time for our etf

spotlight. we are looking at etmfg. up 25% for the year, well of its february highs under pressure this morning as well third largest holding, canopy growth, posting an unexpected quarterly profit on rising demand for marijuana revenue did come in below analyst stilts the stock is down half a percent. norwegian fighting the state of florida to keep vaccine passports. >> the return of cruise ships in south florida has turned into a battle of the heavyweights in a court hearing going on right now. norwegian laying out its case that a ban on vaccine mandates doesn't make sense but florida has two rationales for the man, avoid discrimination and protect civil liberties. arguing that you can stop kids from not going on a roller

coaster because of their height. how is that not discrimination norwegian is suing the said of the southern district of florida, a federal court with the hope that a judge will allow them to operate their business come august 15th florida wants to settle it in a state court which has been friendly to the governor's policies in the past they are arguing it is not about public health but a business decision it has made in an effort to reduce costs they are fighting over the venue to hear their arguments. that's what's going on right now. how cruises proceed august 15th is still up in the air. >> huge implication force leisure traveled. next on "techcheck," it has been a big week for gaming we will talk with the ceo of zynga and drop box's drew houston. stay with us

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i was spending a summer in south korea. i would like to say it was a dare but i was inspired really

by the k pop boy band fashion of the time. >> how long did it last? >> it lasts several months and i let it grow back naturally, which made me look like a spotted giraffe in the end. >> there has to be an art to asking those kinds of questions and learn being them and moving quickly beyond them. >> it is a big moment for these contestants. i did focus as much as i could as making it as easy an experience as possible given i was not a veteran of doing the show that was the key thing this is a big moment for them. maybe some of the biggest they are going to have. i certainly wanted to keep them at ease. but those back and forths are funny. sometimes you get a great story. sometimes there is not that much to work with you have very little time to do it anyway, morgan, so you can't really get too deep even when there is a really interesting

story. but the contestants are great. i have respect for what they are able to do tune in tonight for the last night of my week of hosting it has been great and i appreciate all the support my colleagues have given me as well. >> it has been a pleasure to watch those episodes this week and root you on. >> thanks morgan have a great weekend. >> you, too. >> that will do it for us. i'm the one who is saying good-bye good-bye, everybody. "techcheck" starts now ♪ good friday morning, welcome to "techcheck," i'm carl quintanilla with jon fortt and deirdre bosa today, cloud names have been taking tech higher are those valuations now overstretched? a breakdown as tech aims for more all-time highs. apple walking this