cathie wood says there is more at play than chip problems. cryptocurrency surging bitcoin back above 50,000 and ethereum near the striking distance for the may high. it's friday, september 3rd, 2021 "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen andrew is off today. it's friday. as joe mentioned, we look into the three-day weekend. equity futures are indicated up. green arrows across the board. dow futures up 43 points the s&p futures up by 7. the nasdaq up by 13. we should point out yesterday all three of the major indices

closed high. treasury yields. we will wait for the jobs number that could make movement in the treasury field 10-year at 1.3%. joe, for the "squawk stack" i want to do something different we talk about companies and what we see with the s&p hitting new highs. we don't talk about the breath of this. if you look at the boards we are showing you right now, yesterday, there were -- what was it 77 companies hit 52-week highs in the s&p 68 were all-time highs you don't see numbers like that running through and running through these are numbers for a long time. comcast, our parent company, pool cooperation same story with cooper companies. you start looking through this and it is not one industry

it is not just the major village averages we talk about apple and tesla. this is broad and this is strong and we watch this time and time again. i wanted to run through all of the companies. waste management and adobe 68 companies set all-time highs yesterday. >> i noticed comcast and obviously i knew this was all-time if the averages are all-time highs, you figure the components are as well. if you are not noticing, there is something wrong with you. >> we talk about apple and tesla. we don't talk about all of these other companies with all-time highs. >> someone once said, still on the air. >> i know what you are doing. >> thousands of companies in the s&p 500. an update now on -- i can say what time you can watch. that would give it away?

i shouldn't do anything. that was a long time ago an ub pdate on the devastation from the remnants of under ida 43 people are dead after heavy rains caused flash flooding and overwhelmed the infrastructure the deluge flooded apartments. crews rescued people stranded on the roofs of cars. the transit suspended the car and subway service when i came in yesterday morning, i did not realize what happened to my town which is milburn, becky short hills and milburn is the town proper of short hills su summit milburn, there is a scenic river

that runs through the little town it literally overwhelm withed t overwhelmed the entire business district basements were flooded and four feet above that. >> it happened with our small river in our town, too >> any shop we go to get bagels on the weekend or starbucks, any place we go. it will be months to try to clean it up. >> four feet of water in the church basement. it is next to the river. i didn't realize there was water in our basement yesterday until i got home >> i thought "the new york times. i see the front page stunned. stuns. we talked about it yesterday we knew something was moving up from new orleans we recently had one move up

along the coast that we had seen and we expect it to be really rainy. we didn't realize this we didn't realize it we didn't -- the weather people try to give us a heads up on snow sometimes it pans out. sometimes it's like that's it? you are looking for 20 inches and you get 4 inches or something. i don't remember anyone overstating what was going to happen >> i think the governor of new york said nobody anticipated that the heavens were going to open and we would receive basically niagara falls dropping down on us in a very short period of time >> big in the gulf they called it a beast usually by the time it leaves the water a long way it seems like it didn't this time we got it worse than other areas. >> far more people died here

than there >> but some of the scenes are unbelievable it's jobs friday as we pointed out. the report is expected to provide critical guidance for the federal reserve. it will be looking at it closely as it decides when to begin to turn off bond purchases. also important to see how we're continuing to recover from the pandemic and where we lost so many jobs. it is not just the fed it is the sad commentary on where we are in life first thing we talk about with economic numbers is what the fed might do with it get out. let us live. judy shelton may say that later in the show. she'll be a guest. 720,000 jobs added in august that is a strong number, but down from the nearly 1 million in july. 943,000. the forecasts are ranging from 300,000 to 1 million we will get expert predictions

at 6:30 a.m. eastern. spac news. if you haven't noticed, they are crashing the dow jones industrial average market analysis said the selloff dropped $75 billion of company valuation. the now down 26% for the last six months in earnings news, docusign with better than expected quarterly results. billings rose 47% from the same period a year ago. ceo dan springer will join us at 8:10 a.m. eastern time this is not one of those things going back docusign documents is so much easier which covid things stick i hope this sticks. >> i did it yesterday. i did. >> it's easier >> i'm like the geico ad where

they go, okay, we'll do a pdf. oh, no no, no, no i'm like that except with docusign >> it's easy >> i can handle this i was confident. i went in. i hit start. it went up to where there was a yellow thing i clicked on the yellow. my chicken scratch that no one could read you sign it on an iphone with my big fat finger it went in there i said that can't be it. i hit finish and it said congratulations. i felt really good because i can handle this new age. >> right >> at least with docusign. i'll tell that guy that. i told him that last time. remember it was easy that a

caveman could do it. >> a kernen can do it. >> do you remember that geico ad remember he's going by in the airport and he's got his murse and everything he looks up and sees it. he gets so mad.again, they are stereotyping him. broadcom is beating the street as well up beat guidance pointing to chips for the company because of the adoption of 5g technology. coming up, crypto prices roaring back bitcoin topping $50,000. ethereum close to $40,000. we will talk about the surge that's next.

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crypto markets are surging ethereum up 50% as the rise of nft sales is happening no nfts are part of the block chain. discussing this is the coin shares and navita gupta.

okay i don't know you saw the twitch at the intro. i thought of something this is the tail wagging the dog. it is not bitcoin. it is ethereum okay that's good. that makes sense i thought the dog is the little penguin nfts of a carpenter and then dressed as a fisherman. they cost millions of dollars. i said, okay, it makes sense it is justified. then i see what they are using ethereum to buy. now we're six degrees separated from absolute insanity i don't feel it. bitcoin is up because ethereum is up because it is used to pay for pudgy penguins tell me i'm okay >> joe, your dpgmi.

you are gonna make it. there are over $3 billion of nfts traded in august. nfts are close to $5 billion asset class. crypto is at all-time highs at $2.4 trillion market cap this morning. this asset class is assets within the crypto ecosystem no longer have a beta of one to bitcoin. bitcoin used to drag along alt coins and ethereum now with nft gaining on top of crypto and seeing crypto equity exploding. there are a lot of different channels which the demand is coming again, we cannot dismiss the fact that investors are looking at crypto and macro markets. to me, what is happening in crypto is no more ridiculous than amc or robinhood.

actually, some of the fundamentals are more sound given the fact these assets are limited in supply and starting to become utilized as utilities in the different ecosystems to feel nfts are trading pudgy pen penguins >> i don't know. just because you say you will make it. i don't know if that really makes me feel that much better vida keep trying. >> joe, i'm going to say she is absolutely right you need to have an optimistic coffee today i believe the nfts are great, but look at the finance. $90 billion asset under management some of the bigger projects is changing the game. now nfts along with ethereum are

making $1 trillion markets ready to go. the big announcement of how big is this trend is what she talked about building the ecosystem on top of bitcoin also looking at it with other ecosystems we are here in the world of ethereum doing well by itself as a technology >> you know, i understand bitcoin just a little. enough to be dangerous i'm a believer who is the person who said it? halsom i don't think he has been right since he made all of his money in the financial crisis. that's an issue for me i have to admit. pet rocks and the other things,

i can't help but think this is a bridge too far this is something that is indicating we're going to look back and say how stupid were we to not realize >> i don't think that is the case at all, joe culture is currency. that is what is happening with nfts culture is currency. we now have a way to transact in culture. you were talking about dogs earlier. the dogecoin meme is becoming an nft and token -- >> dogecoin should have given us pause, should it not >> the future is wild. the only constant in our world is change. the future is very different than the past. what is really exciting is ip owners are engaging with nfts. some look like gimmicks and toys the pet rocks and penguins are funny and slightly concerning.

some that have become life changing technologies and trends start out at toys or jokes we cannot dismiss the trend because it is silly. just because 12 or 24 months from now, this will not be a significant component of the market asset owners and creators interacting with crypto and shifting the distribution ca channel away from netflix or traditional ipo owners will shift the economics of distribution and creation and intellectual property and culture. i'm here for it. >> i accepted docusign i accepted bitcoin i understand it a little bit i'm really feeling old and antiquated when i talk about this one more thing about this. you look at income inequality. walmart is raising its minimum

wage to $12 an hour. i never thought i would say that this is the same time that most people who are 60 years old have no money saved people are spending millions of dollars on a drawing of a rock while other people, you know, aren't able to come up with $500 if their life depended on it that says something is not quite right in the world to me >> i want to compare it to something that she said. fashion. there are still people who are spending millions of dollars on cars people spending hundreds of thousands of the new latest trousers or blazers or dress, et cetera now you are looking at so many young people who made the money from the cryptocurrency and gaming they are accessing this and they

are going into something that is the future i bought some of the cards and saving effort part of my pocket money for those cards. i'm doing that for nfts and i can save it for my next generation i do think it may evolve into something that seems we can relate to it it is the future we have to start relating to it. >> i'm trying. i'm trying just with the fed as easy as it has been and they have been saying for a while and it hasn't come home to roost yet, but it makes me think the dollars used to buy these things must be worthless, too if you are putting $12 million into a pudgy penguin, just throwing that out, you must be exchanging one overvalued asset for another overvalued asset

>> joe, that's exactly the point. we're not in a crypto bubble we're not in a stock market bubble we're in a money and wealth bubble now around the world there are over 57 million millionaires. 51% of the population, adult population, on the planet is millionaires 40% of all dollars in circulation today were printed or created out of thin air in the last 18 months again, i think it is causality you would say crypto is to blame. no, it is not. it is a symptom. when you are in a wealth bubble, you see people deploying capital. every asset class is up. not just crypto. every market >> that doesn't make it good just because everybody is doing the thing.

kavita, work with me i'm being honest >> i think stimulus package is right. that is creating a lot of artificial bubbles among classes. i find it difficult to have delivery or a lot of people or hand handyman right now the stimulus package to go to work at a certainly level of the economic scale the wealth balance you are talking about existing everywhere can you compare $40 million to $50 million to buy a crypto? versus an amazing school opening up or quality education system with that $40 million? yes. we can keep comparing that i think since the beginning of this, we compared billionaires buying gadgets versus someone

paying for school tuition. that comparison. i'm notsure how justified that is at some point >> i push back on the tulip analogy. the tulips were not what they were worth they paid for the pudgy penguins >> the apes. >> a loop doing really well. >> tnut ty becky, it has to be worth something. funny hair bulbus nose. >> for the right audience. >> yeah. should i sell myself and have the money? >> sure. you can do it on twitter you have more than 10,000 followers. anyway we have to go. there is more fallout from hurricane ida. the storm disrupting the already struggling supply chain in the

united states. we have details next. as we head to break, check out shares of visa and america -p express. the two worst performing dow stocks this week we'll be right back. >> announcer: lightning round is sponsored by td ameritrade ♪ ♪ ♪ ♪ at usaa, we've been called too exclusive. because we only serve those who honorably served. all ranks, all branches, and their families. are we still exclusive? absolutely.

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trucking rates in the new orleans area surging 20% higher this week following hurricane ida and national rates are on the move frank holland has more on the story. >> reporter: good morning, becky. trucking rates to new york city

are surging 80% higher this week with the flooding increasing demand according to data from digital freight broker convoy. the power outages in new orleans boosted the need for food and water which had a ripple effect on the supply chain and pushed for refrigerated trucking for all-time highs double the rates in from 2019 this will have an impact on rates as the clean up begins across the board major disasters to the supply chain that raise rates but with demand at the all-time high, many truckers are willing to turn down the risky pay days 45% of truckers avoid flooding and 21% avoid areas with extreme heat >> the aversion to hauling the risk areas is greater than the pull factor of extra earnings. when you look at the past half

decade of natural disasters, you see rates jump from 5% to 50%. >> reporter: trucking stocks really have seen the benefit look here. the biggest carriers out perform. the s&p 500 and nasdaq 100 old dominion freight line doubling becky and joe. >> you talk about the risk factors. that is 70% of the country when do industry experts think demand and rates normalize >> reporter: i spoke to the biggest trucking corporation the elevated levels will not lower before the holiday season when they jump because demand increases. his closest estimate with the situation would be some time in 2022 trucking is facing competition for workers from companies they truck for. amazon, walmart hiring that is competing for workers

for those companies as well. >> that means one more additional layer in terms of inflation and you wonder what transitory really means. frank, thank you great to see you >> becky, thank you. coming up, countdown to the jobs report is on. the critical report on the fed's decision of taper timing timing taper tantrum. a lot of "ts." as we head to break, here is a look at the s&p 500 winners and losers >> announcer: executive edge is sponsored by at&t business our people and network will help keep you connected let's take care of business. but all my employees need something different. oh, we can help with that. okay, imagine this... your mover, rob, he's on the scene

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we are just two hours an away from the government's august employment report we have julia pollak at zip

rec recr recruiter. there is a wide estimate of what people are estimating this time around we know the picture is better, but covid was on the rise. what are you expecting to see? >> covid cases rose four-fold between july and august. we did not see people pull back the same way they did in 2020 during covid instead, people are defining delta and moving plans with going back to normal jobless claims yesterday showed no spike in layoff we are seeing no slowdown in new hiring either. >> no slowing in new hiring. people going back to the lives as normal. it does seem like they are focusing on normal with weddings that maybe got postponed or going back to school or getting out and going to concerts. are they wanting to go back to work >> that is the big question the

report will answer we have seen some increase in labor force recently particularly among workers aged 25 to 35 and 35 to 45. the core adult workers. we hope to see that continue tomorrow with schools reopening for in-person instruction, and with people able to send their kids to school, it is likely they will come back to work. >> katie, it is not because employers are not on the hunt? >> that is true. we are really seeing a new woar for talent employees are working hard to attract work force additions and changing the way they think about the employee value propo propositions. >> what does that mean pay up offer more benefits? compete with others to get the same group of workers? >> all of that we see the frontrunners playing the long game. what i mean by that is investing

in work force training and skill development. >> and long term meaning employees they don't want to turnover >> exactly i think we are seeing more and more a sense that the kind of attrition we see right now is unhealthy and people are trying to create jobs that are jobs today, but careers for the long term >> it is creating a problem for employers right now? you hear 70% of people want a new job this year and employers are worried because that is having an impact right now >> absolutely. because you know obviously losing employees who are loyal and who have the skills required means there is a lot of work to be done to attract new talent and upscale it again, we're seeing what companies are recognizing is that not only do they need to attract the right talent, but continue to invest in skill,

development as all of the companies accelerated by covid have been accelerating the digital and advanced analytics which require a different skilled work force. >> julia, you brought up a point. schools reopening and people able to go back to work once their kids don't have to be watched every moment of the day. i don't know that will be reflect in the numbers i think during the week the survey was taken, it was before the majority of schools reopened >> that's true many schools conducted hiring. we should see a large number of new hires in education as school bus drivers and dining room staff and all those people who support that effort. the big story here is what people did in response to the covid surge in august and the big change was that we saw vaccination rates rise

dramatically you know, they fell between april and july from 3 million to 500,000. over the course of april, they have gone back up to more than 900,000. people are responding to this covid surge, not my canceling plans, but by getting vaccinated and masking up >> break thethrough cases. i know people who had breakthrough cases how do you model that out for the next few months? >> i think what people are learning about vaccines is it not prevents all cases, but down plays the risk people now have a way to protect themselves against the most serious outcomes here. >> you don't if you didn't have anybody who can't get the vaccine. any kid under 12 there are ways to protect

yourself not everybody. until that changes, which will not happen until at least halloween at the earliest, from what we hear i don't know how things get back entirely to normal >> they won't get back entirely to normal. that is true we are seeing many companies delaying return to office and that will delay those industries dry cleaner and salons and cafes. of course, we are not fully out of the woods here, but we're seeing steady progress in the right direction and what is happening now is when covid cases spike, we're not throwing the baby out with the bath water, but taking targeted and more limited steps to control the outbreak it seems now the surger may be cresting >> let's hope. >> the outlook is good and we see employers -- the job

postings online active job postings across the united states rose 13% between july and august. that is a substantial increase employers are still looking to hire new workers and they are not laying off workers in response to the small downturn in activity that we are seeing in sectors they know from the previous experience how hard it is to get workers back that you layoff they are hanging on to talent. >> julia and katy, thank you, both. coming up, china with several new announcements that could shake up stock and commodity trading. eunice yoon will be here for that and dr. scott gottlieb will talk about the mu variant or strain you can watch or listen to us live on thcn ae bcpp

news out of china overnight. there seems to be important developments just an a day after xi jinping announced the stock exchange in beijing, the company will open up to foreign investors. eunice yoon has more >> reporter: joe, officials with

the stock regulator said part of the reason for the move is they want china to have a greater role in international pricing with commodities also, the regulators said that they want to make sure that china is more competitive with global markets the moves are that the government here is going to launch more futures contracts. this includes shipping rnb future markets pilot schemes for securities and then also going to accelerate the inclusion of foreign investors in domestic futures trading. this comes after president xi jinping announced a plan for a stock exchange here in the chinese capital beijing. the exchange, according to president xi is focusing on innovation and oriented companies.

smaller companies. the stock regulator put more meat on the bones after the announcement today they said that the board is going to include select tier new third board shares the new third board has been an over-the-counter market in beijing. not particularly successful. it has been around for a few years. it has been discussed as a rebranding effort to try to boost the importance of beijing when it comes to smalloweven ens there will be no limits on the first day of trade and capped 30% from the second day. another effort to get the funding to smaller tech companies, joe, that really are starting to see some of their

options of going overseas to raise money limited to them >> eunice, up to this point with commodities, commodities trading and futures or something that effects the same thing has been around thousands of years. farmers have always had a way of trying to, you know, minimize risk i think of it with oil and fuel and you mentioned shipping it is not like a country is without this until now, until they get their own -- commodities, cboe -- whatever you want to call it. what have farmers been doing up to this point? they must exist there. >> reporter: there is a futures market you know, there are commodities that are already available for trading from foreign investors

it is the market here which is seen as very high risk from a chinese standpoint something that is quite new. they don't want to have a lot of foreign money coming in and kind of making things more disruptive in the financial markets since it is still not as developed or mature to the u.s. they are opening up slowly this is seen as another step in that direction. >> i can't imagine trying to hedge risk over there in so many industries without futures it is not just speculation, but the proper producers and peoplet use it and speculators creates l l liquidity. making an investment in didi what are you hearing about that? >> reporter: so the headline

said it looks as the city of beijing is looking to invest in didi for state control from what i hear it might be more of the city allowing some beijing backed companies, including one of didi's rivals to take a stake in didi. kind of similar to what we saw with bytedance you have a small stake and potentially the government having another small stake in addition to the beijing and state-backed companies with small stakes in didi then having what is called golden shares. you have more influence when it comes to the operations compared to the amount of shares that you actually have in the company there is also talk there could be a board seat taken by the government similar to what happens with bytedance.

again, at the end of the day, nothing has been confirmed it would not be completely surprising given the way the chinese government wants to make sure that it has control within the tech sector. >> okay, eunice. thanks a number of wide ranging things there. thanks becky. >> >> the mayor's involvement you know people are going to believe you, aquaman. >> i'm beyond that >> you'll embrace it. >> bloomberg, i don't care what he thinks about didi he has a presidential campaign >> when we come back, the global chip shortage taking a toll, gm and forld halting more production at north american factories. but ark's cathie wood says there is more at play here phil lebeau has that story next.

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wedge back, everybody. gm and forpd idle more plants as the global chip shortage takes a toll but cathie wood says there is more to the story.

phil lebeau has the story to follow up on a tweet that had the investor world buzzing >> the tweet came out wednesday night early thursday morning cathiy wood said this. on auto sales wednesday and the pace of sales of auto sales town to 13.1 million units, she tweeted automate sales in the u.s. dropped 30 peppers from 18.5 million at annual rate in february to 139.1 million in august while the auto manufacturers blame chip shortages are real, i believe that auto buyers are abandoning gas powered vehicles in favor of electric so we decided to check what are the numbers in terms of ev sales in we're talking about pure ev sales. we're not talking about plug in hybrid electric. a quarter million have been sold that was year to date, up 150% and that's 2.6% of the market. where is the market going to be

through 2025 if it's 2.6% right now, the expectation is that ev sales will gradually ramp up to a little over a million in 2025 which would be between 6% and 8% of the total market. the word abandon is what i'm hearing from a lot ever people if people are abandoning they'd be moving to ev quicker. keep in mind a large part of in has to do with the supply of vehicles tesla is the largest ev auto maker in the world and in the country. it has a gigafactory increasing supply that's scheduled to open later in the year. the plant in fremont, california and the gigafactory ramping up production next year and the next couple years. when you look at general motors and forward they have a couple pick big reveals, big vehicles launch being i should say coming up you've got the hummer electric sut. because it's a truck that's going to be coming out later

this year from general motors. then you've got ford with the f-150 lightning, deliveries start early next year. that's part of the increase in supply that will be adding to the market and allowing people to buy more electric vehicles. but we wanted to run the numbers, guys, because a lot of people said to me, are people abandoning gas powered vehicles for electric vehicles? or the gradual transition that most expected i would say it falls more towards the gradual and steady transition that most are forecasting. >> phil, i mean her thesis would make sense if there were cars and trucks sitting on lots that couldn't be sold but the report you brought us yesterday is that those cars and trucks are sitting on the lot for what was it like eight, ten days and then out the door >> the sure. half the vehicles. half the vehicles in show rooms right now are out the door within ten days. a record high. basically that means, becky, when you and i went out onto

look for a vehicle we don't have what you're looking for right now you want to place an order, may be ready, six months, eight months, whenever it's ready we'll call you do the paperwork and it leaves. it's not a case of us going out and saying hey, that's over there. >> it seems it explains more great tods you, phil, thank you. >> you bet >> right, thanks for doing the numbers because it's got a 20-year time frame, maybe but that's not accounting for what we're seeing that's disingenuous. coming up, getting ready for the jobs report and implications from the fed futures are up up 66 on the dow. and they want it all personalized. with ibm, you can do both. businesses like insurers can automate it processes across clouds. so agents can spend more time on customer needs.

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it is jobs friday. the august employment report set to be released at 8:30 eastern time we've got a rundown of what you need to watch. coming up. the push for more vaccinations this as millions of americans prepare to celebrate the labor day weekend. we'll speak to dr. scott gottlieb plus a deep dive into the run up in netflix what's driving the stock move over the last month. up 15% during the period executive tom rogers is here to

explain as the second hour of "squawk box" begins right now. good morning and welcome back to squawks box here on cnbc i'm joe kernen with becky quick. andrew is off today. the futures are up again this morning after more records yesterday. and then the nasdaq and s&p as you can see the nasdaq indicated up another 16 or so. s&p up 8 and change. and the dow up about 60. here's what's making headlines at this hour docusign post-ing better than expected second quarter results after the close last night the company says billings rose 47% from a year ago. 47%. docusign dan springer will join us live at 8:10 eastern. we may go back to some things

pre-pandemic but we're not going -- no, we're not going back we're not going back with this stuff, becky. >> too efficient and works well. this is ease of life and yeah, i thought the same thing i was signing documents on docusign as the pandemic started and i'm like never any other way. >> no notaries. >> notaries will be out of business on this. >> it should be this way i've said this to him before when your interview is cut you're so good, how do you do it i got to come up with other things. >> you have an our figure it out. >> broadcom and earnings and revenue beating the street the company offering upbeat guidancen on the quarter pointing to strong demand for the chips because of the 5g technology adoption. and becky every time i read this, did you see the mondelez story? there is a global chip shortage of snacks. >> are you talking -- potato

chips. >> chips ahoi, ritz crackers that's a big journal story from mondelez this is the other chip every time i read it i think of what i'm really worried about, that is, if any of the toes are in short reply. >> cheeto. >> name one you don't like. >> tostitos. >> freiheito snp you can't name one you don't like. >> no. >> any of them. >> it's a little too salty. >> barbecue flavored freiheito turkey tofu. >> bubba gump. >> and the global chip shortage is getting worse but we're talking chips forcing gm and ford to temporarily close factories. g rowe gm said it's pausing production of the silverado pickups. ford will stop at the kansas city plants the next two weeks the cuts compound already short

supplies of trucks and suvs on lots across the countries. someone wrote out what happens if the power is out and you have an ev and you need to evacuate. >> that's a good question. take your other car. >> that you abandoned, apparently >> right >> i thought she -- in the past she said things like you're going to abandon gas powered cars for flying evs in 2022. that's why sometimes you might raise at eyebrow with some of cathie's hyperbolic -- >> it's not the case you can't find most cars on the lots because they haven't been produced >> attribute it to that. now she has skin in the game that's her thing. >> looking at things with blinders if you don't look at other data points you can't point to one data point and say this is why. >> i have thought i have a new car coming took a year and a half to get

it can you hear me, porsche i thought -- almost took so long that maybe i thought i should buy the tikan. >> really. >> i have not abandoned -- i have not abandoned. >> me neither. anyway, the monthly u.s. jobs report out at 8:30 a.m. eastern time likely to command a lot of attention from wall street to washington because everybody is trying to figure out this moving picture of what's happening with jobs steve liesman joins us now with more on what we can expect good morning, steve. >> morning, becky. yeah a lot of answers sought by investors from the big jobs report from the outlook for the economic and jobs recovery to the course of monetary policy, hopefully we get clued too many looking for several hundred 20,000 on the non-top line farm payrolls nop compare to 940,000 but it would be wrong stoi

unemployment ticking down to 5.2% wages0.3%. a strong number. but we'll see the second as we reported some of the leading indicators suggest that some downside risks from the delta variant with lower job growth in the southeast and the leads and hospitality secretary are. that weakness though contrasts with the huge demand more workers driven up wages and led to a reported 11 million unfilled jobs in the economy so among the keys to watch in this jobs report, participation. have people come back to the workforce? it's been kind of flat and it's early for school openings to bring back parents but not too early for the hiring of education workers did earnings keep pace with inflation? they've trailed that the past few months and of course fed policy what do we need for the fed to announce a taper several fed officials have said in august they'd already seen enough to announce a reduction in asset purchases at the meeting this month but fed chairman jay powell, he said only that he supported rousseau reducing assets this

year wanted to see more progress. ian shepherds as pantheon writes the fed leadership appears not to bandit to take the chance of upsetting markets. it's clear the market overis back on track. so the question for markets is, what's the bigger fear from a big payroll number that could prompt eventual reduction in fed stimulus or a weaker number that amid, remember, waning unemployment benefits that go away september 6th, meaning less economic growth and consumer spending? becky, i'll take the greater jobs growth any time >> you'll take the greater jobs growth is the problem or you'll take the greater jobs growth is good news for the markets because it reflects the good economy, right. >> better news better news. i'm less afraid of waning fed stimulus i think there is so much out there in the economy. >> i hope that's the story, too. if we can say we're not as concerned about dealt aire delta doesn't go away because it's gotten worse every week since then but if we can see people getting

back to work anyway, i would take that in a heartbeat. >> staev, i said that earlier. i go, it's sad and you are -- this is your beat so i know you love the fed you love the follow them and everything else. but can you believe that every single really important economic -- coming out of a pandemic, people were out of work we're trying to get these jobs right. trying to figure out why they're not coming back as quick even though they are. every time we talk about it it's my god what does that mean the fed will do? it's weird they're so important and such a big part of the economy and our life that shows you something is wrong here i know it's your beat and you wish for the rest of eternity all we ever talk about the fed but that's not the way it's supposed to be, steve. it's supposed to be about, you know, the underlying economy and job growth. >> you are wrong you're wrong on a couple of levels, joe because my beat is to cover the fed and the

economy. okay and the extent to which. >> unfortunately they're the same thing they're the same thing now which is sad which is really bad. >> i know what you're doing, joe. i know what you're teeing. you're teeing up the judy shelton interview. your promoing you're just a television guy promoing the shelton interview. she wrote that in the ted op-ed. >> judy who. >> you know that you think -- you think i fell off the turnup truck yesterday i didn't fall off yesterday. >> hit your head really hard. >> that's another story. hit my head hard that's true. but listen, joe, the thing worth focusing on i think is 11 database 10 to 120 million people lose benefits labor day weekend. and that increase has to be replaced the only way to replace that is through jobs and there is going to be this gap. and that's the bigger concern that i have. even maybe more so than the delta variant which i think is something we'll renner to deal with the idea that you have this lost

income wove to put people back to work that's the key to the kpk outlook. and that to me is a bigger and more important key to investing, how growth is happening. because growth is the pie from which companies extract earnings period, i'm done >> all right you hear what i said earlier i can't believe it i felt like elizabeth warner i was a all over the income inequality sort of that issue -- if some people can pay five million for a picture of a rock and other people can't pay rent and have no savings, does that seem normal in a society, steve? does that seem -- are we -- did we lose our way at some point? i don't want to get you started. >> it's a big deal, joe. >> it is. >> it's a big deal and we have to think about, you know, how it is that we keep the market free,keep companies free to innovate, keep incentives for people to make money but end up with a more fair and a more

meaningful and better economic distribution. >> you are once again exchanging 10 overpriced cats for five overpriced dogs. that means the dollar is what i'm talking about. there is too many of them around there is too many of them around there is too many of them around that's your fault. >> i think if nft of this conversation may be worth some money to both of us, joe think about it. >> you know the u.s. open is underway former protennis player brad gilbert talks u.s. open, the return to live sporting events amid the pandemic. bitcoin. and he has been a long-term fan of the show and long-term investor we'll see what he likes. before we head to break, let's check the markets. "squawk box" is going to be right back a corner to build a legacy. a vision for tomorrow. a fresh start.

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ten sis back in new york with certain restrictions due to covid concerns for a peek at u.s. open tennis and return of live events in the city let's welcome brad gilbert former tennis player and now espn analyst this is an annual thing for us it's almost like a rite of passage. you won a bronze medal in the olympics. >> 1988, yes, joe. and when we started like 20 years ago i had hair you still have a full head of

hair mine is long gone. you know, you even have memes all over twitter about your great hair. >> that's so cool. you did. as well as you know each other for so long, that must have a prominent place out in that cool house. >> i call it the big penny a kbraet experience. then all of a sudden it could have been better but awesome experience being part of the olympics. >> that is pretty cool this year, i want to talk to you about joker. you have monikers for all the players. you've been talking about joker a long time. i've come to appreciate and love him so much. but then i hear some stuff -- is he -- number one is he going to do it, and it hasn't been done since -- >> it hasn't been done on the women's side since 1988 and then the men's side since '69

let's hope, joe, the first couple matches, the fans are not embracing joker. so i hope next week let's say when he is in the quarters or semis they start to get behind him. because it's almost like talking about a perfect game you never want to talk about a perfect game while it's going on but he is playing some absolutely amazing tennis. and i hope the fans get behind him. but at the moment they want to see him lose but i want to see history. i think he is an absolutely incredible player. and he deserves his due. >> well, we take for granted we've had the three guys for, what, 15, 20 years and we take it for granted we don't even care i know american men people talk about roddic being the last one. and how we're -- i don't think we care that rafa or federer being swiss or spanish or joker. they're -- to have those three

at the same time is like crazy and joker is probably the best of all of them maybe. >> there is no doubt i still feel like somehow -- how is -- you know roger federer not from southern california sfl but he is -- aussies think he is from australia the brits think he is from there. the game has become so global, joe. but it would be great if we had an american. we actually go got four in the third right now. keep an eye on 7 foot tall, riley oopelka. he could make a deep run francis theofa playing today between rafa, fed and joker it would be kind of like at the same time having bill russell, lebron james, michael jordan playing the same time. like babe ruth, micky mantle, henry aaron. never seen something in history to have the three great icons at

the same time. and it's sad that serena williams is not here going for the roared. >> naomi is back. >> ash barty going for her first u.s. open. lots of great stories. >> she just won a grand slam. >> just won the other night. i never saw anything like i saw. it was raining sideways. by the time i could get out at 2:30 in the morning, joe, it was a river out there at the course. i saw cars floating down the road it was like, what? i thought we were in a hurricane. >> because we were. >> i was able to get back to my great la guardia hotel first time not staying in the city. >> what about covid? we had the usta he said we don't need vaccine cards or masks. a couple hours later -- i heard it i was like, for real so then now you do need vaccine

cards to get in. is it possible to get in in less than two hours with the lines now? have they got that down. >> they have the better screening. before they had the airport screeners. they are doing a better job of getting people in and out. the first day there was way too long lines people waiting forever that's -- and they've opened up a few more lanes last year as the commentator when we had no fans i had to get covid tested every other day i'm obviously double vaxxed. but this year it's all about showing your -- your vax card. for the players, there is a small bubble, not a hard core bubble like they had last year but they've done a much better job of being able to facilitate people in and out with better screening and more lines >> so did the -- the absence of, you know, a full u.s. database there was one. but will that make up for not

having fedder or nadal or serena in it? will it be a great u.s. open just because we're all together, we're back, full capacity? and i think -- i'm really excited about tp do you think, is it good >> 2020, joe, the usta, gross around 350 to $400 million every year on this event to fund their programs maybe they made 5 cents on the dollar last year obviously it's crucial for them to be able to recoup a lot of the funds any lost last year they won't make what they normally do. believe it or not, the usta told us on sunday they goat 20% of their live gate that comes from overseas that's obviously not coming. they have a little less ground passes this year but what i've seen is a vibrant crowd. we've seen great matches and there is still very good crowds

i see people walking in and out of the gates with bagfuls of stuff. great enthusiasm and passion at the tournament so far. and hopefully it will continue with great matches i do think the fans, joe, have added to making the matches closer they've lifted players we've had, you know, 4-7 sets in the fifth. a little controversy with players leaching the courts for extended changes and bathroom breaks a bit annoying. but great tennis, story, drama. >> let's talk about -- you like crypto way what are you doing in the stock market you obviously par layed your great tennis into a massive investment county listen to "squawk box." >> if i would have listened to myself or never listened i'd do better my little one got in crypto, the

crazy dogecoins. i had never done anything in crypto and bought the first in february i've been two left feet, sold a few too many times it's called grayscale. you advertise it all the time. gbtcp it's my first foray into bitcoin. they're a bitcoin miner. >> yes, we now. >> i need to do better on that another one i love, owned a long time you know i call the new bank, microsoft. you put your money in the bank, you know what kind of interest you get, nad iaaf. it's better to put it ds under the mattress grchl was right. put the money in microsoft i wish they raise the dividend it's the new banks i trade options. i watch the fellows on halftime. the najarian brothers. i like to sneak a few options. i will still after six years have go daddy, frustrates the

heck out of me i'm the avoid trader i feel like the market is like a tennis match like an opponent i try to get a little win. >> like the winkle vi it's the najeri. >> not the winkle brothers opinion. the najarian brothers. >> last but not least. i hear joker has been doing temper tantrums. but when push comes to shove and ever on the line have you ever seen anyone dig deeper and mentally tougher that's why i love him. the more the crowd hopes against him, the better he likes to stick it to them. >> you know what's amazing he visualizes 17,000 people are rooting against him that they're rooting for him. he is one of the most' stounding competitors, joe, i have ever seen. >> bar none. >> and he is not beloved like rafa and roger

never will but let me tell you if there is a guy playing and you want playing that last point for you, you know, put him in that guy is, like, i'm telling you he is on a mission, phenomenal to watch courtside. his focus -- he does that -- that raki mind training. maybe it would help me grow hair. >> no, no, i got something for you for that but there are some side effects. see you tomorrow night you know where i'm sitting, right. >> something tells me you got a decent seat. hopefully i'm not calling them out. i can sneak over to the suite. the u.s. ta did one thing smart, got rid of some of the press and photographers down low and created floor seats. you can get the great fan experience down low. cost a pretty penny. $10,000 a ticket for the final weekend. great experience. >> a bronze medal.

>> that's in your wheel house 10,000 a ticket. >> yeah, sure. >> put it on cnbc's dime. >> put it on the tab i'll try that -- tried that once didn't work out well anyway, great to have you on brad, we will -- >> and forget about the chip shortage, the docusign way to go, zoom all this modern technology i know you love all that stuff >> all right thank you brad gilbert see you later. >> take care. >> we'll be watching you too coming up a quick look at the futures before we go to break. up 58 points, nasdaq up 24, s&p up nine. time for the aflac trivia question it's national bowling league day. the term turkey is used for three strikes in pa row. do you know the term used for 12 strikes? a row? the answer when cnbc "squawk the answer when cnbc "squawk box" continues

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the insurance industry is ringing alarm bells over the extreme weather damage

and failure of government and home owners to account for risk. contessa, what are you hearing. >> becky, first of all, corps logic is out with estimates of the damage in the gulf between $27,000,000,040,000,000,000, including both insured a uninsured losses just the gulf states core logic says its analysis shows 70% of the flooding there is not covered by insurance. 70%. and 46% of the damage won't even be covered by wind policies. the insurance industry says government and business and home owners are simply ignoring the rising risk of severe weather. an example, home owners who get mortgages for properties located in what fema dictates 100-year flood zones have to get flood insurance. across the street from the boundaries flood insurance is available but 96% of people choose not to get it in california, as the fire threatens south lake tahoe it's

another year in the series of the most devasating fires on record burning hotter and longer yet gallagher the insurance broker and risk management consultant says companies and home owners downplay the risk rebuild in the same fire prone locations to the same building standards. ahead of the gallagher property practice told me weather related events are a major driver in increasing insurance costs and climate change undoubtedly contradicted to increase in the events aid, travelers alalion have significantly limited wildfire exposure or quit offering coverage altogether. now a lot of the home owners wildfire coverage or businesses especially, wildfire coverage means you have to go to th specialty coverage if excess and surplus lines. paying ten times more than what you used to with the deductible of a million dollars or more so there will be sticker shock across the nation and for

everyone who pays insurance, not just those in these areas prone to natural disasters, becky. >> contessa, i think they answered their own question as to why people don't get insurance. it's too expensive too big of a deductible. and it make it not worth it. you end up self-insuring and putting yourself at risk ever time it comes out. >> and then what we saw after hurricane harvey in houston is that so many people lived in undesignated flood zones they dent didn't know they were at risk of flooding the cost of repair, bouncing back, more than they can afford or in a lot of cases more than the house was worth. they ended up leaching the keys on the counter and walked away there is a trickling down effect to the economy there but if everyone were to get flood insurance who, say, had any risk of flash flooding that would also add more people to the pool of coverage and potentially could lower the costs for everybody. we know. >> nationalize it. >> they're going to reprice --

they're going to reprice flood insurance so those in higher risks zones pay the risk. >> it's a dilemma. insurance is there but they have to price it to pay for the claims when they come in i'll be interested to see. >> that's right. >> how big the claims are here on the east coast after we saw from ida here the cars you saw stranded, basements flooded, a lot to watch for contessa, thank you. >> those estimates now next week injury. >> great, see you next week with that. coming up, dr. scott gottlieb on the covid variants, a new one called mue also, the -- the threat of more spread over the holiday weekend. labor day weekend. we'll look at this the winners and losers this morning. s&p 500. squawks box coming right back.

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covid cases are rising but americans are still planning to hit the road this labor day weekend. reservations for the long weekend are up 46% from 2019 before the pandemic. that's according to the

short-term rental property management platform guesty joining us right now is dr. scott gottlieb, former fda commissioner and cnbc contributor. serves on the boards of pfizer and lumena he has a new book called uncontrolled spread. why covid-19 crushed us and how we can deecht the next pandemic. scott, i kid you not in the last 20 minutes i received a email invitation for a birthday party. out in the hamptons. i take it that's a bad idea. >> i think we need to recognize the dealt awave we are experiencing is happening against the back drop of normal behavior i think people are taking precautions in personal lives and scaling back a bit but people are going out the epidemic clearly peaked in the south. it's now apparent in the data. all the case growth we are seeing in the states in the south most happens in the schools, unfortunately

among younger children as the schools become sources of secondary spread but cases in adults are declining even hospitalizations are declining in states like florida. so it's a situation that's improving. i think there is a perception that we're sort of through the delta wave in the northeast because we have seen delta cases go up and come down in places like the new york metropolitan region seeing positivity come down i don't think that was the true delta wave that was the warning the true wave starts to build after labor day here in the northeast and northern part of the country. this is going to be highly regionalized i think labor day and return to school are incubators for spread leading to the delta wave. whether we see a wave of infection as dense as the south, i don't think that's the case because we have a lot more vaccination, a lot of prior infection when we will also know is protective. but we will see a build in cases in the northeast i don't think that we're done with this. i hope we are but i don't think we can conclude that just because the cases are coming down from the mini surge we saw

over the summer. >> if it's tied to schools, obviously we're sending kids back to schools, obviously nobody under age 12 can get vaccinated, what are we supposed to do about it watch and wait >> look, i think this is -- this is very contagious in the school set. we are seeing it in the south. we have seen situations where schools became sources of community transmission that happened in the springtime with 1351 in michigan when michigan in adense ep chemical deming and massachusetts also. because they put kids back in school for the first time right in the setting of the wave of infection, that b.1.1.7 infection. and schools became a source of transmission for the variant the risk is is the same thing happens with the delta variant i think schools need to go into the year with in mind they have mitigation hopefully controlling spread masks, use of keeping kids in defined social pods. improved ventilation schools making more use of

testing. we have seen studies if you do routine testering in the schools once oh and twice a week you pick up infection before it becomes dense infection in the setting. there are things the schools can do but the schools are a risk factor for spread within the schools and also becoming sources of community transmission >> i haven't let my kids play sports until the spring. they didn't get to do anything this time last year. i wanted to let them play sports again this year. am i wrong. >> no look my kids are back in extracurricular activities as well playing sports. i think activities done outside are lower risk than activities indoors. and i don't think we can keep our kids her metically sealed two years in a row we have to take more risks for the sake of allowing children to get back to some semblance of normalcy but i think you need to think think of risk as something cumulative over the risk of the day. it's not necessarily binary. even if it's binary from when you come into contact and

contract it it's isolated setting. but if you do certain things you know introduce a child to more risk think of things maybe you can withdraw to lower the cumulative risk over the course of the day we prioritize getting children back to school that's number one. keeping them safe in that setting. trying to reintroduce extracurricular activities that are important to them. but do you need to go to an indoor birthday party, things like that, that are sort of discretionary, but higher risk, those might be the things you want to think twice about if you know you're sbrus v introducing your child into settings that will have risk because it's very important to them like sports, like school. >> scott, we hear all the breakthrough cases for people who are fully vaccinated maybe they didn't take every precaution to mask up every time they were inside but if you see the breakthrough cases and now we hear about the new variant, moo variant what does it mean for life going forward? is there a point we go back to normal or are the new variants popping up all the time and continue to hinder things?

>> i think we're going to go back to normal after the delta wave hopefully this is the last real wave of infection we're experiencing but it's a new normal because this is going to become endeming, circulating every year, probably a winter pathogen as coronaviruses are as after we get nuvimmunity in the population and continue to drift. we'll need to reformulate vaccines from time to time people need to get revaccinated people infected and relying on the immunity from prior infection will need to be vaccinated at some point they are not having lifelong immunity from a prior infection. s in like a second circulating flu. the challenge is we already have a flu. and if you have this circulating alongside flu i think the cumulative productivity impact to society and businesses is too great to return to life as we knew it. we have to implement more precautions in congregate settings meaning people vaccinated at work improving air filtration and handling in indoor settings. we have greened builds now we have to blue them because we

sealed buildings to make them efficient but that might have mitigated against the precautions we need to to reduce spread of pathogens. >> people need to -- >> we need to improve air handling systems people need to stay at home if they are sick or brachg pout a cold in the middle of the winter is. >> we have shame people who come to work. >> exactly we have to make more access to you know home diagnostics which the fda is doing we're changing our behavior because if we have this circulating alongside flu, given the productivity impact that flu has each year, we're not able to tolerate that as a society from a financial standpoint but also public health standpoint we have to be -- to do things differently. that doesn't mean life is going to be a whole lot different. we're just going to have to change certain practices in the winter time and fall when this circulates >> back to the question that has become my obsession as a parent. when can i get my kids under age

12 vaccinated? because you hear all the time we have all the great vaccines don't worry take the vaccine you can protect yourself but i can't protect two of the people i love the most when does that change? >> i'm on the board of pfizer so i'm familiar with the time line for that vaccine the pfizer vaccine off and on children 5 to 11 is the same time vaccine for adults smaller dose one-third the dose 10 micrograms. guiser has data on that in september and plan to file for authorization or approval sat some point in october. this is a question of how long the fda takes. i think typically the fda has taken about six weeks to review these applications, maybe two months but i think in this case there is at least a chance the fda wants a longer term median follow up on the patients on the clirn in that clinical trial that could push it out a bit longer i think you are looking at best case scenario maybe authorization or approval early in the winter time and maybe gets pushed out a little bit longer depending how much follow-up the fda wants with respect to the kids in

that. >> i thought of halloween, is that not the case. >> that's when it's filed with the fda. the data available in september but the application probably filed by the manufacturer in this case pfizer in october. give give or take a week once it's filed assuming the fda takes six weeks to review the application that puts you in the early december time frame. if the fda takes longer and wants longer term follow-up it's pushed out. >> talking going through the holidays potentially and having this come back again >> i think -- i think what what we're talking about getting through the delta wave i don't think you have a vaccine available for children that's authorized in this delta wave. because i think this plays out over the next two months we're seeing a wave of infection course through the northeast also coursed through the south my presumption is that after we get through the delta wave prevailens levels decline. you get to lower prevailens levels across the country.

not where we saw in july of 200 cases per day. but you can live relatively normal against the back drop with added precaution. i think after the delta wave we get down to the prevailens levels that will be persistent through the winter assuming nothing untoward happens, don't have a new variant kourps through the population, overall risk should decline after we get through the delta surge of infection. >> scott, thank you, as always >> thanks a lot. >> coming up what's driving the move in netflix. over the past month. stock's up 15% executive chairman of engine media and former ceo of tivo tom rogers joins us to discuss the runup. but more importantly one of the founders of squawk box, cnbc that's his real claim to fame. docusign falling despite quarterly results topping wall street targets seen a lot othf at in that type

of stock speaking to the ceo dan springer on sq"squawk box" in just a bitg

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unchts netflix shares hitting all-time high yesterday. stock's up 7% the past week. 20% the past three months. joining us to talk -- tell us what to expect next from the streaming giant is tom rogers, executive chairman of engine media, first president of nbc cable. he founded cnbc, the former ceo of tivo, a cnbc contributor and

on the record, just saying that "squawk box" always has been and still is his favorite show on the network. tom, good to -- actually -- you love all your children but tom you've been right about netflix, though. and i think the other streamers there is a place for them, at least from my own personal experience they got to get something i need to see and i always need to see something. and as long as they something only they have i keep them and pay whatever i need to pay to get them but netflix as you pointed out sort of is in the cat bird seat as being the first one and the one with the most money. >> well, joe, the last time i was on you said netflix needs a new must-see show that's the way they regain momentum. >> right. >> and they got one. it's a show called seinfeld. they're so excited about it they ordered 180 episodes they took your advice and went

right at it. >> seinfeld is -- anything that's ever happened to me there is an episode where it happened. the other day i almost ran over a bird, a pigeon, i was like, you're supposed to move. that's part of the deal. you move i can't -- remember when george hit the pigeon it's like that's not the deal. we had an arrangement that you -- and his girlfriend is like, my god, you just killed that but everything that's ever happened guy takes off his toupee and he is balanced. everything that's happened -- that's not a personal one actually. >> i give netflix for a lot of credit for the way they introduced seinfeld exclusively streaming on netflix they took so much crap when they were use losing the off network shows to other streamers and people predicted that was the end of netflix so bringing it back they had a sense of humor about it. >> tom, i still don't have enough content to watch backup that's why i need to see, you know, murder in new york is hulu

and dr. death was peacock. i need everything. because -- but you know, i'm watching most of the time that isn't like that. it's a baseball game on mlb or college football, because i got% $5 on the game when is mainstream media going to figure out a way to get involved with this, like nbc -- i guess we're already trying and others are trying. but do you see the potential for being interactive with the sports that you are watching and having skin in the game? >> well, engine media is is a big player in that sense we believe turning into a game as opposed to betting where you play force against sons, buddies against each other, predicting what happens next. yeah you can play for cash but it's the social interaction as opposed to odds against the house which we think can make the interactive experience that much more exciting but we're a little off the netflix subject by espn,

disneyland, saying it would potentially get into marketing of sports betting in a bigger way, asking it sounds like $3 billion to whoever is going to put a shoulder behind. obviously legacy media knows that there is something there for them that they got to exploit in a bigger way. >> well, we talked with you about media in general and i think this is underappreciated what's going to happen from it but if you have -- besides seinfeld, what else can you tell us about why is netflix stronger than the average stock right now? what else is going on. >> well, so much of the streaming wars, stock price fluctuation has been about the headline number of who reports the best subgrowth in the quarter. and coming out of the pandemic it's been a bit sluggish for everybody. but i think what's going on with netflix, beyond the fact that all the fang stocks recently

have really broken out, and see people are recognizing that that headline subnumber isonly a small part of the story when it comes to netflix there are a lot of other reasons there. content, as you say, critical. they have the biggest budget by far when it comes to streaming programming, streaming content, to the point that at a $20 billion a year budget which they're getting close to, you're talking about being able to do one new original series or one new movie per day. so that's a big deal and a big competitive edge relative to the other streamers. also, you got to look at pricing and how well they're doing there. you know, disney puts up a big number when it adds a lot of subs but they're mostly out of asia at 50 cents a subs is. and netflix adds most subs at about $10 a sub. a huge discrepancy in terms of the majority of the subs coming

on then you have the issue of engagement, how much are people watching, staying with netflix, returning to netflix and even though it had sluggish subnumbers last quarter, it's engagement was actually up 17%, probably four times or more the engagement that disney plus has. so people are drawn to the service in a big way a number of other reasons as well >> well, if there had to be a reason for me to not dread the eventful cord cutting is that there is so much available on streaming. i'm willing to take the good with the bad, i guess, tom it has disrupted, you know, legacy media but someone told me gmi -- i'm getting through this or i'm going to be okay that's the same situation here even you, tom, that was a new business when you came up with it and now that's being disrupted but you got to move or you die.

>> you called me old the last time i was on, joe. >> i think i got you really -- i think that tsh it wasn't even old it was wise. my point was you disrupted an entire business with cable and now you're disrupted you must be ancient but i didn't mean it. >> engine media is redisrupting. >> we're colleagues right there with you kemp rathers there but for the grace of good. >> thanks, joe .n@

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good morning the count downis on. 30 minutes away from a jobs report with huge implications for the fed's massive bond buying program activist battle, reports say chevron executives met with representatives of a small investment firm that waged a fight with exxon over carbon emissions. we've got the details straight ahead. plus the ceo of docusign is here to break down the company's latest report and trends from the pandemic the final hour of "squawk box" begins right now good morning and welcome back to squawks bock here on cnbc live from the nasdaq market site in times

square i'm joe kernen along with becky quick andrew is off today. we got accomplished i think. media, you know, covid, becky, and you know, u.s. open. u.s. open. but this hour -- this hour i think we will refocus. and that is jobs friday. >> that's right. >> coming up u.s. equity futures ahead of that up about 35 points 18 on nasdaq a new high s&p indicated up 6 and change. and treasury yields truly like watching paint grow. recently up 1.29%. some day they might rise and go through 1.5 and go through -- go through 2% like hot butter through a knife. but at this point they have not. >> hot butter through a knife. you did that on purpose, didn't you? >> i do all those things on purpose. but most people don't think i do and that's why i do it i do it for them as we wait for the hour's big

jobs report let's look at the big market trends we're seeing right now. mike sooantoli joins from us the nyse. >> the broadest market trend in this terms of u.s. stocks has been the stead inness of gains in s&p 500 it's actually been remarkable that we've actually managed to go up directly without a 5% pullback in the s&p all year and yet not get overheated along the way. one of the complaints habits really been narrowing. you haven't had a lot of stocks participating in the surge it's been insulated by the big growth stocks. but that's kept the index from overshooting along the way that's something that usually kind of maybe creates the ingredients for one of those pullbacks. we're also about three months into this wait and see period about a modest economic slowdown and what it means for the consumer the jobs number is going to inform some of that. you look at a few consumer

linkd, the equal weighted skrurm discretionary, it's banks, small caps you see no net progress since june but they're also pretty much holding gains that were built up into the spring. so i feel as if the market is positioned as if, yes, we see we have decelerated on growth we see a little spottiness in some of the economic data. and of course we have the covid surge we don't know the impact but it's not sort of saying all bets are off we think we're back into slow growth mode. it's a stutter step, not necessarily a stand still, is the way i interpret. the credit markets showing something similar. over the last six months, very safe corporate debt has been outperforming riskier corporate debt lqd, investment grade corporates, that's pulled ahead in the last few months of high-yield and this is in price not in yield. but high-yield has not backed off. not a panic about credit again, a bit of a holding pattern we've been in for a while. naturally the jobs number today

informs some of the debate about how it goes from here. but at this point the market has been insulated from a lot of the shocks just because for a while now things like real estate shares, and big growth stocks in the nasdaq have managed to pull things together as we get into september, guys. >> so, mike, we made the point that cheap money and abundant fed actions raises asset prices. we know asset prices can go into a bubble we've been making the point or at least i have earlier about nfts what's overvalued? is it the rock that's worpgt $5 million or the 5 million is not worth 5 million? in other words the dollar? why hasn't gold reflected that is it because crypto has taken the steam out of gold? is the hedge to the dollar and if all these things are overvalued how do we know the stock market isn't like an nft, money is so available that it has to go there.

and it really has an air pocket under it >> well, first of all, that's a chain of premises you set out including that the fed is putting too much money into the system, finding its ways into places that it maybe doesn't belong or maybe it's not going. >> make it the congress, not the fed, the biden administration not the fed. 5 trillion adds up after a while. >> no, absolutely. there is no doubt about it that's part of the what the story is for what markets are doing right now how they managed to exceed like what they were before covid however, gold, gold has been kind of losing status as this place to go to bet against, you know, central bank mistakes or excess for a while it really peaked ten years ago especially on a relative basis, peaked ten years ago i think crypto fills some of the role for people inclined in that direction. but it never proved reliably over many years the thing it was supposed to be, outright hedge

against inflation. yes it worked a while. i don't think it's necessarily going away but it's losing market share to other instruments for sure >> okay, mike. thank you. we'll see you. >> all right. after exxons battle with small activist firm engine number one kmerch is reportedly gearing up for a battle of its own. leslie picker has more details. >> industry watchers were specking like this to take place after these unexpected upset of engine number one and it's proxy fight with exxon but "the wall street journal" reporting this morning that chevron met with representatives of engine number one they're citing people with the matter for sourcing there and engine number one of course recently won three board seats on exxon, with a proxy fight close to the sustainability idea they were also urging the company to be better about allocation strategy and other traditional activist plans engine number one gave no indication that it would pursue a campaign against chevron, according to the journal, but

it's also reportedly been in touch with other investors about pulling together a group to buy shares the biggest investors in chevron are typical large fund managers you see in a lot of companies. advantage guard, blackrock, capital state research it's unclear who they reach out to it does feel early stage at this point in time. but this idea that engine number one was so successful at exxon, that in and of itself had every oil major on notice for something like this to take place. in the "journal" article, they had a chevron spokesperson braden riddal saying they have contingency plans to respond to events including an activist investor they regularly engage with sharmds but still chevrons shares this is what it comes down for every major activist is the how they performed recently they are up 17% this year so far. but that's trailing the broader

index of 21% up slightly this more than about 0.4% right now a little bit volatile this morning. i did reach out to engine number one and chevron both this morning. i haven't heard back yet guys but will let you know when i do. >> i think the thing that has so many big companies quaking is the idea that engine number one was able to do this with only a $50 million investment with exxon. that was 0..02% of the total market company cap of the tp right now engine number one according to filings only has $600,000 worth of chevron. it's kind of phenomenal to see this happening my guess would be that engine number one wants to, you know hold the title of being able to be the david versus goliath and the smallest david you've ever seen coming up of activist investors. i guess momentum plays to their favor with so many others coming into this. it's hard to gauge how it might go. >> you bring up a great point. and interestingly that 600,000

is held in an etf technically not supposed to be used for activist campaigns so you bring up a great point that their strategy -- and this is why it's considered an unexpected upset when it happened -- they didn't mold a billion dollars of the stock they didn't even own $100 million worth of stock. the amount they held was so small that people brushed it off at first as being this new activist with this big campaign. but would it go anywhere because they don't have in terms of monetary value that much of shares to vote with. what happened and what really helped the cause is that they did have this esg -- they played into the trend, able to market the campaign in a way that got other big investors onboard. especially those like blackrock ha had been on the record saying they would support sustainability proposals and that they were all for carbon reduction plans. they kind of played into the --

the culture at the moment in terms of the investor community and were able to prevail there and that is why you see all of these oil majors reacting. chevron itself has this carbon reduction plan they plan to roll out. whether it was in response to exxon or being kind of on on the offensive with regards to making sure that they're not a target as well, you know, it's unclear at this point in time. but nonetheless, in carbon reduction ideas idea is something that's really taken hold within the activist community. >> leslie, thank you leslie picker. >> thank you coming up, the ceo of docusign is going to join us on whether the company can maintain the momentum from the pandemic that's cinupomg next. plus counting down 8:30 and the closely watched jobs report.

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docusign posting better than expected quarterly results the provider of electronic signature technology raised the full-year guidance for total revenue subscription revenue and billings joining us with more on the business is dan springer docusign's ceo and saying throughout the show stock the was weaker but it's not. my premise that the stocks like

zoom and others have been big beneficiaries of the pandemic, some of them after reporting good earnings they've gone down a little based on slowing growth that's not the case here and you're up 2% what did you say about the future, dan? >> well, i think there is a couple of things. the first thing is we put up fantastic growth numbers again so people were pleased to see that and i think we gave a strong guide for the second half, indicative how we think that despite the fact that we will be off of the sort of pandemic highs, the real tailwind for our business, we see strong growth ahead. at this scale, a couple billion in revenue just over that gor the guidance for the year i think people were pleased to see that. >> what -- i've used it for a lot of things. i got a couple of questions to figure out how much -- where you are in terms of finally getting to 100% of everything. because that's what i think becky and i were talking about

that's where i hope you get to where i never have to do anything again beyond something on the mobile phone. >> right. >> where is the growth what else are you not doing now that you're working on that you're able to do soon and how much of the legacy stuff i'm talking about like mortgages, i did something for a piece of property the other day that howed someone to list it. how much of that is penetrated by docusign. >> let me talk about it two different ways from a timing standpoint, when do we get there, to the elusive 100% penetration and the from the timing standpoint i look at the total addressable market we see between signature and the broader docusign agreement cloud as we talked about with you in the past where people don't just sign documents but generate and manage that set of documents afterwards we're going to do our $$2 billion of revenue

talking about in the range of 5% penetration. it's taking a long time even though we passed 1 million customers, a nice bounce on the bounceless quarter, you look at businesses out there in the u.s. and internationally, again, it's just a small fraction. even though a lot of people in the financial services say to themselves, doesn't everyone use docusign we have a long way to go both customers and penetration. in ferms of functionality. i think core signature on its own has years and years of high growth ahead but the rest of that agreement cloud we talked about the generate agreements within docusign, be able to manage, have a reposer to of all agreements and then able to do advanced analytics and severance against all the agreements you created customers, suppliers, partners, et cetera we think those are the exciting areas >> one of our producers told us about how he had a real estate transaction and kept telling him he would have to docusign the document coming up but when you actually did sign it it wasn't docusign.

it was a competitor. i guess the good news is the brand so so well-known you guys have become the brand for all this but there is competitors out there. how do you fend them off. >> i think the perspective you got both pieces right. we are pleased to have built a brand as forester said a couple years age, we've become a brand the name is the verb how people think about doing electronic documents and signing them there is always competition. we had competition since the beginning. i think we see a lot of people have the same phenomenon people wish to use docusign if they weren't because of the reputation for quality, up time and the sort of security and reliability we're in i think the answer is we continue to focus on customers not competitors. we believe if we take care of customers and drive great success we'll have plenty of market to take. >> who came up with docusign is that you or -- that's its own moat if i need a document signed

where what are the other places? contract sign? paper sign there is no competition because you've got docusign. what else is there >> yeah, yeah. pink you're spot on. tom gonzer, the founter of the company and he and his wife ellen came up with the initial branding poevr 15 years. >> you got a moat. >> we think of it as a good moat. >> good moat we'll check back in three months love having you on and we'll talk about the other things there are -- i don't want to go anywhere and have to do that again. it's up to you so that it doesn't have to happen. >> that's our goal that's why we'll be doing it. >> i've never had to do anything to sign up for docusign. so get them to do it make them do it or else they can't compete. >> only a million of them i told you doing it now and a lot more businesses out there we'll get to work making sure everyone has agreement for you delivering through docusign.

>> scanning and signing and the printer and it's down. it's not working i'm not doing it thank you, dan thank you! keep it up. >> life it hell and you're not taking it any more. >> have you tried scanning always something is wrong. something is off line. >> when we come back a trivia question with you, what state needs the most infrastructure help nowhere better to fine the answer than our own scott cohen what's up. >> here we go again, becky there is new infighting among senate democrats over the twin infrastructure packages. joe margin on one side berrettini sanders on the other caught in the middle this state thhe worst infrastructure in america. where am i we'll tell you i've spent centuries evolving with the world.

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work on a massive infrastructure package no state will be watching more closely hand than the one where we find our own

scott cohen this morning and scott, we like to reward our careful and close viewers. so they all know anybody closely paying attention because we had a loeker line you're in maine. >> that's right. that's right maine is the state with the worst infrastructure in america based on our 2021 america's top states for business study and perhaps the biggest reason is the power grid the average maine customer is without power for more than 15 hours as year. that makes it by far the least reliable of any state. it's especially bad in rural areas. nann kennedy raises sheep and manufacturers fine woollens in washington maine for her power is money and outages are expensive. >> my animal don't have any water because i can't run the water systems. and nothing is working during that time. it was a hot, hot day. pended up blowing my whole solar

system. >> this is a big political issue, including a bipolar drive for a public takeover of the state's largest utilities. janet mills vetoed the first try calling it hastily drafted now lawmakers plan to take it to the voters >> this will save us $9 billion in the first 30 years alone, reduce our monthly electricity bill and we'll have more money to invest in the grid so that the lights are on when we need them and we can switch to more -- cleaner energy sources >> main's largest utility, central maine power, part of utility giant avon grid. is not surprised they said the proposed non-profit under this would not be able to afford important investments. >> we need to invest in reliable systems. we need to invest in renewable we're not going to be able to do

to do the things we need to take the grid into the future >> the white house says that maine stands to pick up up to almost $2 billion under the bipartisan infrastructure proposal, a small portion of that is for power grid modernization. there is about 60 billion total in that for the bill nationwide. they need it badly in maine. >> anybody who has been to maine knows what part of the problem is at least you have a lot of rural access and pretty remote areas. and the lines run through lots and lots of trees. when a wind storm comes up it easily knocks these things down. what have they said we have to run -- what have they said in terms of how much updating needs to be done and how much that might help >> well there is a lot- that's what shall tells you becky when you ask about the power problems they talk about the rural nature of the estate, the population is spreadout. they have inherent disadvantages. on top of that they haven't kept

up with diversifying some of the generation source and modernizing the grid and they hope to do that there is a separate huge political issue over transmission corridor that would bring renewable from canada down through new england. they're going to be voting on that in november as well there is a lot of opposition to that it's controversial but, again, something that meets an important need here in maine. >> thank you, scott, cohen. >> sure. coming up, the days when we could play music it's the final countdown we can't do it any more. liesman hated it so much fun. the august jobs report minutes away our y'all tar stahl panel standing by ready to react there they are high pressure there they are there they are pick you there were letters, calls, bills, i didn't know where to start. i submitted an application and within two days

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welcome back to "squawk box" on cnbc less than a minute away from the government's august employment report. ahead of that number we want to welcome our jobs panel today kate moore is head of the them attic strategy for blackrock global allocation teams. kneela richardson is chief economist at dadpp karen kimbrough. jason furman, the chairman of the council of economics

advisers and professor at harvard kennedy school of government and our own steve liesman annual rick santoli the hundred thousand jobs were created in month of august you see the dow futures up by 44 nasdaq futures up by 23 and the s&p indicated up by 7.537 quick look at the 10-year yielding 1.3% earlier this morning. but right now handing it it over to rick santoli. >> rick. >> yes, the jobs report is out august non-farm payroll increase a minuscule 235,000. 235,000. you heard me right and if you look at the private payrolls, up 243,000 change in manufacturing? up 37,000. the unemployment rate had a drop of 0.2% to 5.2 a post-covid low

if we look at average hourly earnings, zoom, zoom, zoom, boy, you can go back to history not a lot, up 0.6 up month over month. up 4.3 on earnings year over year and if we look at the average, weekly hours, 34.7 is a bit light. that's one tenth lighter than rear view mirror and one tenth lighter than expected. you look at the labor force participation rate, 61.7 again we've had several of these post-covid that is the p.o.s.t. coved low but over several occasions just to refresh your memory, 63.3 was february of 2020 pre-covid and a new post-covid low at 8.8, pre-covid february 2020, it was 7% the moves in the market, interest rates are going down

just a bit it's a big disappointment. and if all you can think about is substantial further progress, mostly this gives the fed ground cover to potentially not announce the taper as aggressively but only time will tell the panel, what do you think >> thank you, let's bring in the panel rounl. starting with steve. steve, taking a look at the numbers, 235,000 versus the 720 anticipated. that's a really weak number. and you can look at this the market not selling off a ton of this. but this is terrible new resist for what it means for the real economy. >> well you can drive a truck of about half a million workers through that fact right there, becky. i'm glad we reported the entire week, the high frequently date pointed to the weaker number i must say not this week weak. i can maybe slain why it's weaker than expected let me tell you where we didn't

have job goose egg a goose egg and leisure and hospitality. that was what we pointed out earlier this week was the place that may have seen the delta variant effect we had retail minus 28,500 another big disappointment trarpgs that has been stronger if the past. the big miss on the one of the parts of the big miss on the part of the private sector forecasters was the expectation to be a huge influx ever workers in the education area. the private sector education did add 40,000 but looking at -- i'm double checking the number again. the local education, it was minus 5.7 on local and minus 20 on state i have read reports becky expecting 200 plus thousand thousand on the education. there might be a bit of a mismatch that would make this miss not that bad because there is some education

that will be hiring. doesn't appear to have been caught up or maybe papered over by the seasonal adjustments. i don't think it's wrong to think the miss is not as bad as it seems from the headline but still a miss suggesting we in i think clearly a delta variant effect in this number here along with some squirrely seasonals. >> steve i've been trying to figure out why all of the educations jobs wouldn't be covered by seasonal adjustments? is it because of things like bus drivers and cafeteria workers maybe weren't employed requested lasty year because of delta? i don't get why educational things would be such a surprise? >> i think you're on to it it's a weird comparison with last year what the seasonals expect and what actually happened and when hiring happened there were -- there were educational workers not let go because they were still on the payroll in july. and in june. because of things that were happening. and then they didn't come back and so they weren't fired.

so it should have picked up some big increase that was what goldman expected, many others expected a big increase in education workers. it didn't happen and i'm not -- all the seasonals are messed up right now, becky i think there is a bit of a seat of the pants going on with the seasonal forecasters here. >> we have been waiting for workers to return. i don't think it's the case anywhere that it's not a hiring issue. it rooblings there is demand for workers in a lot of different industries we thought maybe this would come when kids went back to school. do you think this is a reflection of the workers not being there because maybe most of the schools weren't open? or do you think this is a big are problem with delta >> yeah, the adp report when we really see it on wednesday we anticipated a down shift in the labor market that he was entirely due to what we saw as bottlenecks, it's not that as you rightly knew becky it's not because there isn't hiring demand. but there are still lingering

issues of covid concerns and the lack of full-time affordable child care never have i spoken about child care and the jobs market so much together because they are so critically important. and right now we're dealing with a bus driver shortage. another aspect of the whole scenario of getting kids back to school, which is critical for working families you are really seeing this timing mismatch, covid fierce and the fact that there is a deceleration in economic growth going on in the second half of the year all conflating for the lower labor market. >> hey, steve and rick, is this -- all we've been talking about is somehow the fed reacts and you know, given what we have seen with taper talk recently, now we get this. and i'm al pacino. now we're back to the full

employment mane. they got total cover to put all the taper stuff -- it's the roach motel. they're back in. they pulled back in. they can't get out. >> you can check in but you can never check out. listen, joe, the number is weaker than we all expected. i understand that. but when you really look at what we're seeing here we're probably looking at a variant effect, just as steve said that's going to mostly being temporary. it's going to dissipate. what we're left with are we having a wage spiral back to inflation? there is hot aspects to this that aren't good i will contend that we are past the point that we don't understand this well we've learned a lot over the last year and a half obviously things get worse but most believe you're not seeing the big shutdowns, the capacity reductions. my point here is current policy going to accomplish what you

just said. i don't understand how buying 120 billion-dollars of month of securities is aiding bringing back bus drivers i don't understand this. i also -- i can't wait for a year from now to read the post-mort emon the states removing the benefits early. i'm sorry i i read the research i'm not sure i agree maybe the states that haven't are just so big that they're swamping the data points but in the end when you can't find people like bus drivers and restaurants -- i can understand to some extent -- i think there are issues out here that are going to dissipate over time but i think the fed is digging in too deep and it's going to come back to haunt them. >> liesman >> i think that the fed is going to pass on taper -- announcing a taper this month i'm not sure it's incredibly

consequential compared to where we are right now that they're not going to buy $120 billion -- that they're not going to announce it in september i think they will announce it in november i think there is time. included in what rick was sigh saying -- injury i implied this, there is time for the delta variant issues to clear here they should clear by october or by september, october and will have an impact from hurricane ida at least somewhat. but they'll probably look through that i think the fed is on course for reducing this stimulus that's out there. i think it's late. but i don't think it's critically late. and i think that's maybe a difference between rick and myself i think the fed has time i think some of in inflation will pass through the system and there will be some left and the fed might have to address that but i think the fed should have acted already. i don't think it's a critical flaw at this point that it hasn't >> all right, i want to work >> steve, you know how many --

you know how many frauds have said that over the boiling years of the past? seriously, the problem is you're looking at it from one way hanging around doing this isn't going to really hurt, and i'm saying hanging around and doing this isn't really going to help. but because the issue is the fed always. >> rick. >> guys -- >> got to give other people to chance to talk here but it's been the wrong call to call for inflation over most of this time and it has mostly not occurred i think the idea -- the water has not boiled the frogs have been safe. >> the questions always win. jason and karen i want to have you two weigh in and jason, first of all, surprise with this, what do you think this actually means >> look, i think there is no question that delta virus has taken a toll on the economy. what's interesting is how much tinier the toll on the economy is than the toll that it's actually taking on health.

we're headed pretty rapidly to daily death toll from delta exceeds the death tol we had in april from the first wave. but then you look at the numbers, delta maybe subtracted i don't know 600,000 jobs. last time around we lost 20 million jobs delta is having about 3% as much impact on the economy as the first wave of the virus did. people are -- labor markets are still pretty tight on this more than 10 million job openings job openings keep rising one of the big data points this month was wages. up 0.6%. that is a tight labor market with a lot more openings than unemployed and that also means poised to add a lot of jobs in the coming months as people either get over fears of delta, the delta virus starts to fall or, you know, time starts to fix all of this.

>> karen, i've been saying all week that i wasn't sure we should read too much into the numbers because the two things that we've been saying with really getting people back to work have been schools opening and the extended unemployment benefits ending. and neither of those things really are happening until right now. a couple weeks after when this survey took place. how much can you say, okay, let's just wait another month and we'll see what really happened >> actually i think it's a waiting game i think for the fed. i think the time is on their side they can continue to wait. you know, i think it's likely to be later in the year before they start to make a move on tapering and they don't have to rush in my opinion i think inflation will also subside eventually they don't have to rush to make a tapering move. and in terms of the labor market healing that we would like to see that's also a waiting game because a lot of the action we are see -- by the way there is a lot of action, a lot of churn, a lot of job transitions these are largely from people who have a job and jumping to a

job with, say, more flexibility or more wages as we see in the data what we haven't seen yet is people coming off the sidelines as much as we would like it's starting, continuing. but i don't think that full pull will happen until we know kids stay in school five days a week, until we see the effects of the unemployment benefits maybe pulled away after a couple months the labor market is complicated. it's going to take a couple of, you know, more cycles before we see the full healing but i think we're on the course for recovery, no doubt about it. >> is from a stock market perspective, what does this mean does this change anything that you would be telling investors right now? >> no, not really becky because i think we've been focused on this theme of supplyside challenges to the further economic recovery. instead of the demand-side i think that's really kind of playing out in the labor market. heard kneela talk about the bus drivers. we don't have supply of the workers. we don't have supply, whether it's in the supply chain or

inventories across a variety of industries this is something that companies have been talking about consistently over the course of the summer they've talked about during earns calls when any communicateswood investors at other times and there does seem to be a limitation or at least a headwind to progression in economic growth. due to supplyside constraints. if it was demand-side, i think i would be more worried and concerned about how the equity market interprets it but for right now as long as we know we'll be able to work through some of the issues over coming months andys i think some of the supply chain stuff for example in semiconductors will take quarters not just months. you know, as long as we can work through that over the period, you know into the end of the year and beginning of 2022, equity markets should look through this still see upside through the equity market year end and i'm constructive on the asset class, you know, over the next two months. >> hey, the equity market is not doing much but rick i see you signaling this, rates are going up a bit

i think i saw 1.32 for the 10-year. >> yes, yes rates have done a u-turn folks from a couple of basis points under 1.30 to 1.32. 30 year bond yields up 19.94 maybe they are watching the show because this is the discussion traders need how much impact it's going to have on the ultimate time line and i think we can tell, plus a three-day weekend where equities are close to all-time highs but pay attention here should they push the rates above 1.37% that would be significant. i don't think it happens but that's the level to pay attention to on 10s, the level on 30s, 2%. >> meaning that traders are watching and thinking through things and thinking okay, despite the weak number, it probably is fallout going to impact the time line we're going to continue to see the start of tapering happen on that same time frame >> yes, i think that's exactly

context what traders are thinking they're thinking the federal reserve is ultimately going to move on. of course but continue to keep an eye on the variant. but that gives them a couple of months that's the way traders are i think approaching it continuing to probably do the -- continue with the plan although there is going to be a small asterisk but the three-day weekend is putting the asterisk off to the side. >> maybeit's the weight thing. there is two components to inflation. >> absolutely. >> that's -- >> i couldn't agree more, joe. i think that and the -- the year over year and month over month numbers as jason furman also fointed out these are fairly aggressive numbers on the wage components on earnings. >> i have to jump in here. because we are where we see the gains with be the industries and jobs that are most poised for gains in the second half of the year are the low paying jobs that were lost so it's very likely that that wage growth declines as these jobs come back and more people

come to the labor market it could be just the artifact of the composition of jobs that are out there now. without really reflective if we were to see a fullsome labor market recovery which you see the low paying jobs come back to circulation. >> kneela may be right on that when you hear from wal-mart and amazon and companies looking to hire back lots of workers as we hit the retail season they're talking about how they're paying more to all of those workers who are working in retail, or some of the places where you get the packages out the door. >> yeah, no, it's a tight labor market right now the labor force participation the fraction of people in jobs looking for jobs still isn't above where it was last august there is a lot of people that haven't returned to active job search we can debate the reasons. but i think the reasons diminish over the next couple months. the other thing in terms of looking at the fed

i don't know what substantial further progress is. nobody knows what it is. they decide what it means. the economy made progress in august this may be below our expectations but an unemployment rate falling by 0.2%, that would normally be a huge amount of progress. wage growth of this magnitude, continued job growth this is not the black buster progress we saw in july. but the economy is still moving, you know, in the right direction. nothing like last year, the dramatic moves in the wrong direction. >> yeah and i would add to that, steve, just the idea that the fed has already kind of laid out the strategy and rolled it out so carefully it's going to take more than a miss to get them to change it, right? >> yeah, i mean they're on course to take the course correction in september. the jobs report takes it off the table. but i want to put some numbers behind what jason was saying on the household side of the survey you had more strength and i want to tell what you it was. the labor force is up by

190,000. it has risen every month except for one since february there are more people coming back into the workforce, not enough to really change the participation rate the number of unemployment fell by 318,000 on the serum which had employment, there was more than half of a million jobs created on the household side. be a little careful about noisier survey but the other side of the survey is showing a little bit more strength than we goat on the household side which could -- i sent you an email if you want to see what the labor department is saying about the complications in estimating these education workers, which that payroll side is a little bit more seasonal adjustment noise in it as well. there is the strengths out there of people coming back in but putting the unemployed back to work. >> i saw the email from the bls report i thought your description was better and clearer stick with that. >> it better be better. >> it was. it was better. i want to thank our panel. steve, rick, kate, kneela, karen

and jason. thanks, all. coming up, judy shelton we get her reaction this morning's jobs report. talk about the central bank decision and news breaking, the s.e.c. said it has charged the kraft heinz company and two former executives for engaging in a yearslong accounting accountinge it says the company will pay $62 million in civil penalties and has agreed to cease and desist from future violations. kraft didn't admit or denyhe t charges. stay tuned, you're watching "squawk box" on cnbc.n■

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the august employment report coming in much lighter than expected, up 235,000 the estimate 720,000, joining us now with judy shelton, a senior fellow at the independent institute and a former federal reserve board nominee, also the author of money meltdown, restoring order to the global currency system. her latest op-ed in "the wall street journal" is titled "congress needs to rein in a too powerful reserve." let's talk about the number we just saw

there had been some talk about maybe the fed beginning to extract itself by tapering one of the things that we've always talked about is how hard it is to get out you know, when you think the entire onus of the jobs market is dependent on what you do, then you get the slightest disappointing number and you feel like you need to keep doing it it's hard to get out do you think they feel that now or are they on track to taper? >> well, i think that number is very sad in terms of the real economy. in some ways it makes for a field day for fed watchers because now the focus will be not just on the 22nd announcement, it could be now november 3rd or december 15th,

and so for the army of financial analysts who spend each day trying to guess whether the fed is satisfied on the financial further progress metric that they've established for deciding whether or not to taper their 120 billion in monthly purchases of government-backed debt, this is more grist for the mill but i think you do have to ask why if we are seeing people not going back to work despite all of the help wanted signs everyone is seeing in so many shops and restaurants and service industries, if we're not seeing that, how can the solution be for the fed to buy more treasury securities, more agency mortgage backed securities i just don't understand how the fed can justify its prolonged monetary accommodation it's just more cow bell. it's always the solution >> yeah, that's a "saturday

night live" reference. everything's with more cowbell it's amazing that chair powell is up for maybe another term and the far left don't think that he's actually dovish enough, and in your piece yesterday, i liked one of the comments, and that is the fed is in there benefitting people not who live off paychecks, but people who live off portfolios and therefore, if you accept that premise and if the fed ever looked closely enough at really what the end effect of some of its actions are, they would not want to do that. they would not want to -- but by default when you stay at zero, people that own stuff, their assets go up and everybody else is sort of stuck in the muck i think if they realized that, they might try to get out of our lives a little quicker is that your point >> well, yes, my point is the fed is well intentioned, and it

does lament the fact that lower income workers and minorities are not sharing in the benefits that monetary policy bestows on people who are invested in financial markets. but i also fault the fed for having policies that do slant, think of the people who have sacrificed each week to put a little bit away and they put it into a bank savings account, they are getting nothing think of people on fixed incomes who now have to contend with inflation, and i do think that the increase in wage gains does ultimately into inflationary pressure even if we do see the fed is now likely to delay tapering until further -- later in this year so these people are punished

i don't think they're the ones who have great sway on capitol hill, and i just think that we can't have monetary policy that seems to be rigged in favor of big government, big corporations, big investors at the expense of people who have tried to do the right thing and be responsible for their retirement years or to take advantage of -- not advantage. it wasn't intended, but think of people who want to buy a house, those same low income workers, the median price of a home is now $375,000 so even with rock bottom mortgage rates, that does not make it affordable because it has pushed up the price of h housing, and these things matter the price of gas these things matter to people who are working and who don't have time to be glued to their screens every time a federal reserve official gives some hint about their future actions, and

it's only the people who are involved in financial markets who benefit from that, and it makes it worth it to them to pay attention to every nuanced statement. >> yeah, judy we only have less than a minute left do you see any possibility when you -- i mean, you do this long enough, it i's tough to stop and it's tough to get out. do you see any way to get out of this corner the fed has painted itself into? every time we have a bad number, they feel like they have to do more how do we get out? are you optimistic >> i'm not optimistic. i think they're in a bad position because since 2008 they've retained this emergency power of being able to pay interest on reserves so if inflation were to get out of hand, they only have this very blunt instrument, the administered rate, and they would effectively be paying banks not to lend. i think through creeping incrementalism, the fed has

worked itself into a bad position, and that's why i'm saying congress at some point has to assert some responsibility. >> great we can -- we'll put our faith in congress to fix things that's a great choice. judy, we got to run. >> better the constitution, the constitution >> exactly >> have a great three-day weekend. becky, you as well we love these three-day weekends, except they go too fast join us on tuesday andrew's back, "squawk on the street" is next. >> good friday morning, everybody. welcome to "squawk on the street." i'm david faber with morgan brennan and mike santoli carl and jim have this morning off. let's give you a look at futures as we g et ready to wrap up the trading week it the august jobs report reflecting worries about the delta variant ou