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 outbreak

non-farm payrolls were up last month well below street estimates of some 720,000 jobs being added. the unemployment rate was in line with expectations it fell to 5.2%. average hourly earnings up 4.3%. that is year-over-year you can take a look at the ten-year, and morgan, leisure, hospitality, it kraccounts far large chunk of this miss there were no job gains versus 415,000 in july, 397,000 in june there seem to be a lot of help wanted ads out in that area. the delta variant may have cut back in general sort of job growth as well, and that is a lot of the many hiss. >> which is notable given the fact that so much of this data was in the first half of the month as well, before delta picked up the pace in terms of the climb we saw as the month continued to unfold, you had the hurricane

impacts, weather impacts towards the end of the month too it wasn't just leisure and hospitality. it was also retail declining by 29,000, food and beverage down by 23,000, and actually, kind of interestingly, you saw a decline -- you saw an increase in private educationjobs you did see decreases in government education jobs in both the state and local level it will be interesting to see how that shakes out in the next job reports. it kind of speaks to the seasonality we see in general coming into the fall season. >> actually, august is always kind of a noisy one with the seasonal adjustments the markets too, i think it's worth noting were kind of tacking in the direction of maybe we have softness relative t to the expectations. maybe explains a relatively moderate reaction afterwards you did have 130,000 positive net revisions to prior month if you add that to the number we got in august, it gets you up

towards 400,000. it seems as if people are saying this is a definite miss, but given the fact that you did also have this other peak in the covid surge potentially and the fact that it does seem as if it's the most impacted parts of the economy that were responsible for the miss, almost like it doesn't necessarily change that much about what the fed's going to do, but it shows you that the fact that the na nasdaq's been leading the way for a while, the fact that the cyclical stocks have been hurting it shows you that it didn't necessarily come as a total shock. we were sort of clenching up for impossible weakness. >> yeah, meaning doesn't mean much for the stock market at all. >> well, i don't know. it could mean much, certainly if it's more than one month phen phenomenon, and if we get to a position where september seems weak and the fed is going to start to more explicitly signal that it's cutting back on its bond purchases maybe that matters you know, i think there's now a consensus building around the

fact that the $120 billion a month certainly isn't doing anything to help directly what is ailing the labor comeback, which is a supply issue. it's people needing to come back to work. it's not necessarily demand for it i think that's maybe why the market is okay for now. >> you do have a labor force participation rate that is stubbornly stuck at 61.7%. also, i think the other thing to really key in on is the fact that you continue to have these pretty veroe roeshs wage gains we've heard and continue to hear on a daily basis from corporate america about the impact of higher costs and price pressures and supply chain issues and everything else and what that means in terms of price increases for consumers. when you see average hourly earnings up 0.6% month over

month, much higher than expectations, 4.3% year-over-year, i mean, that is not -- those are not cost increases for kacompanies that e necessarily transitory walmart just yesterday saying they're going to raise wages for their u.s. employees too >> yep >> let's talk a little more about all the numbers and the market's response to them right now with diane swan, chief economist at grant thornton and david kelly, chief global strategist at jpmorgan asset management good morning to you both diane, you've heard our discussion here. your first reaction, there's no getting around the fact that it's a disappointing number. i wonder how you would put it into context of the overall economic trend we're seeing. >> unfortunately we're seeing a huge deceleration globally as well we've seen really weak numbers come out of china recently the delta variant is hitting economies that escaped other ways, and i think that's very important to take into context that hurts the supply chain

disruptions we've seen erupt out there, but it also hurts demand. looking at what's happening and where we saw the delta variant hit the employment report, that's demand related. we saw a blow as you already mentioned in leisure, hospitality, food services we know from the credit card data that spending stalled out and started to come down a bit as the wave got worse in the worst hit areas. mobility actually pulled back during august in those hardest hit areas. we also saw the pullback in retail as you noted. an important issue has been the ironyof what happens to health care as we get overwhelmed in hospitals.% health care employment actually fell that's partly because we can't find enough people to workment we canceled elective surgeries during the month in many of these hot spots as we went into this employment report we also heard reports of people literally walking off their shift mid-shift because of their frustration, and how overwhelmed they are with what's happening in their hospitals in response to delta all this leads into the

disruptions we're going to see from hurricane ida fw we know from that it suppressed employment for two months. we've got probably three months of really weak employment data going forward. >> david, if that is the setup here, it seems as if it must be as simple as just track the pace of the delta surge, seeing exactly whether cases come down, and just looking at the realtime consumer data, is that really all the -- that we in the fed ought to be watching at this point? >> no, i don't think so. i think we have to ask some real questions about what is full employment to date because this is a different economy from the economy we had at the end of the last long expansion. then we could get the unemployment rate down to 3.5% without explosive wage gains now over the last two years if you look at the wages of production, non-supervisory workers, they're up 9.9% over a two-year period. that is the strongest we've seen in 40 years. whatit says is that for variou

reasons there just isn't labor supply in america right now. we've got 10.1 million job openings half the small businesses in america have jobs they can't fill it's a supply constraint economy, and i think withthe de variant is going to have a significant impact in suspect, more so than in the august report because i think it sort of gathered pace over the course of the month this really is a supply issue. we need to think about immigration, how do we deploy vaccines to get people back to work i think it would be a mistake to see this as a lack of demand this is really a lack of labor supply >> it's such a key point, the nfib this week noting that half of small u.s. businesses have unfilled job openings. i mean, the demand is there. does the supply side become a bigger part of the equation? does this change and i guess thus the expectations become more spring loaded for the september jobs report, when you see some of those enhanced

unemployment befnefits starting to roll off. you have the eviction moratorium basically being lifted for better or worse, and of course the reopening of schools and kids going back. >> well, that's a really good point, and one of the issues that we know is that we don't know -- the preliminary data is that it's not a huge impact as a deterrent, the supplements, but we'll really find out in september. the labor supply issue goes so much deeper. this is both a collision of supply and demand, but demand has slackened. that really has to be underscored. we are looking at gdp growth below 4% on the third quarter now. that is a major slowdown in momentum that said, i think it's important to look at the supply side issues go so far beyond those supplements. we see child care issues, child care hiring, child care services fell for the second consecutive month and we saw participation rate among some of those that are single mothers that are the

most vulnerable to this still weak and they're the ones that are going to be not able to return until their kids can stay in the school and the fact that many schools are going back into quarantine after they open, that further mucks up this idea that we had that the labor supply would be there much more readily as we reopen schools that's another issue the other part that everyone forgets about, we had 2 million excess retirees that don't want to go back to work at the moment they could return to the labor force. we did see a big pop-up in participation by teens that's off of low levels i mean, the kinds of movement, we're seeing from teens is encouraging, and that could be a source of labor supply, but i absolutely agree with david that the immigration situation is a huge problem when you've got an aging labor force, people retiring and afraid to go back to picking up 15 to 20 hours a week after retiring after age 65 because of contagion and the hazards of working a front line job. >> david, i need you to kind of

wrap it all up for our viewers and try to bring it to your view of the stock market or global equity markets given this very disappointing number, the fact that we still seem to be anticipating a taper from the fed in november, and then what it means for an e bu lent overall equity market. >> i agree with diane that while supply issues were predominant in early august, i think the demand issue is building up here there's a lack of -- demand is going to slow down a lit you've got a slower growing economy. you've still got higher inflation. that's going to be challenging for the equity market. i think it's very important to buy things that are well-priced here, that don't have huge p/e ratios, huge multiples those things will be challenged in a global economy, which is growing more slowly are higher inflation interest rates. >> all right, at least as a reflex move it looks like those

expensive nasdaq stocks are getting a bid this morning david and diane, thanks a lot for walking us through it today. >> thank you coming up, we'll have a closer look at the future for didi there is some reporting that beijing is potentially going to try to take at least a significant stake or a voting control stake in the company unclear if that's true let's see what the stock is doing. taking a look at futures as well, of course, as we get ready for an opening bell 18 minutes from now, and let's call it a slightly higher open more "squawk on the street" more "squawk on the street" coming right up. yes, with a slide. a perfect location for the world's first one-hour delivery. an inspiration for the next workout cult. because there's space for any dream on loopnet. the most popular place to find a space.

: welcome back to "squawk on the street." shares of didi rising in premarket trading. beijing industry is considering taking a stake in the chinese ride hailing company and possibly bringing it under state control. it is unclear what size stake beijing would consider taking, and you can see the spike in the chart right after that report hit the wires. right now didi is higher by 4% premarket, but, david, it really does speak to the ongoing regulatory concerns, headlines, developments that are coming out of china right now, what it means for investors, including investors here in the u.s. as by the way, u.s. regulators also take a much firmer stance towards chinese companies that are listed here. nonetheless, you see the k web, that chinese etf is higher by 9% this week. we have seen a little bit of a bounce. >> today they look like they may

be headed down it's been a very good week for many of the names you're looking at on the screen after what has been a significant down trend given this onslaught of regulations. as for this in particular, first of all, remember didi went public at 14, fought for its ipo june 10th, opened at 1665, and then the bottom fell out a couple of days later when we got the first of what have been a series of reports. then it was the chinese cyberspace administration launching a security investigation and there were questions as to whether didi already was aware of this prior to going public, and perhaps the underwriters should have made everybody fully aware of it. i don't know what to make of this i'll rely on eunice yoon she messaged some investors, heard rumors one said he thought it was unlikely it would be a bad look for global markets and there were other ways to punish didi that's kind of interesting

it does seem more likely that if that were to happen, it woul not necessarily be seen as a positive. >> no, just generically, somebody's going to come in and potentially put money into the company or acquire it. now, it's -- the kweb is down 50% from its highs we have to kind of put it in the frame of we've seen a lot of damage people have already been leaning extremely negatively towards china, especially given what's going on in the economy. you can't get away from the fact that every single day it seems like there's some other announcement or signaling of we need to steer this economy and society back in the direction the way the party wants it as opposed to letting it be a little more of an unfettered, you know, raising capital and going out and doing your own thing if you're a private company. >> yeah, and listen, there are those who are making a very significant bet on the short side in general in terms of china. i know a number of them, george soros put a piece out recently talking about what he believes was quite negative, even

worrying about macao or even the likes of apple if this continues to move in a way that it seems to be drifting towards just unclear, but you know, we have our china bulls out there. there are certainly those who believe this is not going to get any better anytime soon. >> the news withalibaba, it's going to have to invest its own men. >> $15.5 billion by 2075 is what they've generally committed to interesting. we're going to keep an eye on all of those shares. coming up, president biden is scheduled to speak about this morning's jobs report. that's at 10:00. we will bring you live coverage of his remarks get started with trading in a little less than 12 minutes or so now king care of them, i knew that i really wanted to become a nurse. amazon helped me with training and tuition.

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taking a look at the top performing s&p sectors so far this week. universities and communication services are rleading the way. health care up more than 5%, and real estate, it shows you a relatively defensive tone to the market leading into today's job market top five right now, technology rounding it out up 4.8% going rounding it out up 4.8% going into today

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welcome back, we've got about six minutes until we get started with the final trading session of the week. of course we'll be keying the markets. perhaps keying a bit on that employment number coming in well below what was expected. we're going to keep an eye on the financials, i guess the ten-year yield up a bit, but what's been behind it, if anything >> i mean, there has been -- yields have been under a lid all week now they're getting a little bit

of release to the upside banks may be looking their way towards perhaps trying to firm up here. at least it would be a little bit of a tell to the market's expectations about what this all means for not just the pace of growth, the jobs number, but also for yields. the banks have kind of held steady for really six months now. they've gone sideways, not really given up the big league they built up in the first quarter. it's the same thing with retailers, the same thing with the small cap stocks we've been in this three-month holding pattern of we all expected this really fast reopening and a huge kind of boom time running hot economy. that's been doused by a lot of the reality of delta it's not as if the market's given up on this idea that ultimately this is a lull and it's going to pick up again. to me that's what going into the fed decision, maybe this number today says nothing happens in the september meeting except they say they're continuing to talk about the taper it doesn't change anything about powell's expectation that by year end they begin to end the program.

if that's a prelude, you know, to something where yields maybe get a little bit of upside, then maybe the banks have a different story to tell. >> it's also worth noting that with the financials underperforming this week, it's not just banking that are adding to that drag within the sector, it's also the insurance companies as well given the fact that we have had hurricane ida and it has done damage not only in the gulf, which is continuing to dig out are from that but also throughout the northeast as well you're seeing not only pnc names under pressure but also reinsurers >> i think we got time for me to squeeze in a little bit of breaking news here on something you and i have both been following for quite some time, which is that battle for the rails. you were out actually, you didn't get to cover a lot of it when the stb said no to canadian national in terms of using a voting trust such an important part of their overall offer and their ability to basically take the risk off the table for ksu shareholders so they continue to be talking

to ksu about what, if anything, they can possibly do to enhance their bid, to stay in the game, potentially to appeal that offering as unlikely as that may be what i can tell you now, and this is not a big surprise, that kansas city southern's board is going to meet, not sure if it's going to be later today or early tomorrow, and they are going to deem the current bid from canadian pacific likely or possibly likely to lead to a superior proposal. that has the effect of allowing them to start to talk to cp, which of course you want to do if you're the kansas city southern board why? the cpd deal although less in value has the assurance potentially of being able to use a voting trust and therefore taking a lot of the risk, the antitrust risk away, if not all of it for kansas city southern's shareholders it is expected, it was perhaps expected that kansas city southern would want to be able

to enter talks with cp, about what can potentially be done to enhance that offer given the lack of a use of a voting trust there. according to people familiar with the situation, we can expect, morgan, that we're going to see the board of ksu make that decision. hence, talks will begin with cp. they were either saying hey, get back to us and talk to us or we're leaving the stage. >> it's pretty incredible, yes, i was out when we got the stp information tuesday afternoon, i know you covered it extensively on wednesday, but very strongly worded around this as well which i think speaks not only to concerns, at least from this administration and regulators are where rail consolidation are concerned, but also more broadly something we've been talking about which has been scrutiny in general across a number of industries this actually isn't the only deal or potential deal that's on the table with -- i just lost my

microphone again >> wow >> you really did. it's completely gone her microphone you're like a magician with that microphone >> i like wave my arms around and next thing you know. >> there it is e we'll keep our eye on it you've gone an activist investors, they own more of cp than they do of cn, and of course by putting pressure on cn to drop their bid, they inevitably are encouraging cp's bid. so believe at tci there will be a beneficiary if cp buys that railroad and they have more economics going on there than they do with the other side. >> there's this emerging thesis that perhaps canadian national would be better off, hence some of the activist activity we're seeing take root better off at ksu. they could focus more on things

like precision scheduled railroading, and operating ratio lower as well. potentially an opportunity there for investors as well. >> you hear the applauds building here as we get ready to start the last trading day of the week the opening bell >> i'm going to have more on that spac in a bit and over at the nasdaq, legend biotech. we want to get to some breaking news right now out of apple, and for that we're joined by jon fo fortt. john. >> david, the news from apple this morning send just a few minutes ago is regarding those steps that apple was taking to combat images of child exemploy

explo exploitation they were going to scan devices includiing macs, they were goin to do it in a way that does not look at all the images on a user's phone but would be able to make matches to a database. apple is hitting pause on that the statement reads in part, last month we announced plans for features intended to help protect children from predators. we used communication tools to recruit and exploit them and limit the spread of child sexual abuse material apple says we've decided to take additional time over the coming months to collect input and make improvements before releasing these critically important child safety features. the indication from apple, they still plan to do this, at least in this statement, but just not immediately, and when they say in the coming months, given that we normally get an announcement of new iphones here in september, they begin to ship shortly thereafter, perhaps hardware for the holiday season. we probably shouldn't expect to see these features roll out

until 2022 this happens as apple has also just taken this step to settle with a class action suit having to do with the app store and make changes to the app store given pressure from the government in japan. so apple reconsidering quite a few of its policies and procedures this week, guys >> all right, jon, thank you for that news, jon fortt on apple. speaking of the stock, mike, it has had a good week. >> yes >> despite what would have seemed to have been headlines that would have perhaps auguauguserre for a different reaction >> the stock kind of acts in the absence of anything that's going to move iphone demand news or anything like that it's mostly about do people want to migrate money toward the $2.5 t $2.5 trillion behemoth that is a great steward of capital and is going to have durable profit margins. i think that's the way it's been

acting for a while now it has been this kind of nasdaqy market for several weeks right now to the point where really the only major parts of the market that seemed like they got a little stretched was nasdaq 100 type stocks and of course apple the biggest one of had those. >> netflix has had an incredible week. >> some of the stuff that's been sort of lagging like a netflix, like the arc funds, they've percolated again after six, seven, eight months in the wilderness it does seem as if the longer a bull market goes, nothing can get left behind for long, and i think netflix is an interesting story there because you've reset subscription growth expectations, i think, after last quarter's numbers you've probably gotten through the period where basically everybody who's going to launch a streaming service that could be of any sort of threat or create more churn at netflix has done so. netflix now the giant and the incumbent and they have this big releas release slate. we'll see if that gets it to 600

or not >> all the major averages are lower today, albeit very, very small losses to really end the week, and of course we're hovering right near those record highs we've been hitting almost day after day it would seem for the s&p and the nasdaq in recent sessions tech, to your point, tech just went slightly negative in terms of sectors in the s&p, but apple is one of those names hanging on to gains today and broadcom actually traded lower initially on those results despite the fact that they were better than the street was expecting. i know we do have a quote here from the call as well from hock tan, the ceo, talking about their discipline around supply you can see it right there we can show bigger numbers, but that means we will build up inventory in the wrong places

and we will need every one of those waivers in this environment, not just this quarter or next quarter and the quarter after that to ensure that our strategic customers are able to get what they need to launch to deploy programs. >> right >> right right? >> yeah, it's interesting because it's directly addressing the big concern among investors, which is, yeah, there's a shortage yeah, there's supply disruptions. that means everybody's double ordering and it's not really reflecting organic demand and we're feeding into a future glut by trying to meet -- broadcom's trying to get ahead of that saying we're trying to be smart about it we want to make sure we're rationing our supply into those who are going to be putting it into products that are selling. >> we've been having so many conversations about the deployment of 5g, and broadcom is keyed into that, but also this shift to hybrid work models

as well, it seems there is not a day that goes by that we don't get another post-pandemic game plan that is announced by a company. and so even as there's this churn going on, it would seem, in the market in terms of reversion to the mean and what growth rates are going to look like from the tech companies that have benefitted the most from stay-at-home work, there's this bigger, broader secular enterprise cloud and technology adoption in general story that is playing out and broadcom is certainly keyed into that or exposed to that. so are some of the other names that are big names like mongo db, for example. you can make the case about docusign, a number of names that speak to, i think, this debate about just how much growth is sort of left in the tank for these enterprising face tech names. >> docusign, they make the case, the analysts make the case of all these pandemic beneficiaries

might be the one that is the least likely for people to go back to the old way of doing things, right? i think the stock reflects that. it's given back almost nothing since we've reopened because people feel like there's no real net benefit to going back to signing papers physically or all the other services that docusign creates. super expensive stock. >> i did want to come back to spacs and sort of something i've been very focused on the last couple of weeks. specific to today, offer bad, it is now a publicly traded company, what we call a despac'g as we take a look at the broader averages there what has caught my eye of late of course is the level of redemptions that we're getting at many of these spacs shareholders can choose before record date to get ten bucks back if they do so, and so many of these stocks are trading right at around $10 and believed, frankly to then after the close of the deal go down,

many investors are saying i'll just take my $10 it's another transparency question, though, because not all of these spacs are actuall telling us what their redemptions were or the redemption rates were, and you sort of have to try to back into it by simply figuring out what they say their post cash, post-merger cash position is in the case of offer pad, that's $284 million then you go back and look at the original press releases they did. they had expected to have $650 million in cash >> that's a big difference. >> that included 200 million from the pipe and 60 million in a direct investment. you only got 34 million of what was originally going to be 403 million in the trust account from the spac, meaning your redemption rate here we don't know know, they didn't tell us had to be very high all of this goes back to the idea listen, when they set these deals up and decide on a valuation, they also make a decision in terms of how much cash they want to fund their

business plan to reach the goals they put out in a long presentation we typically get on announcement in this case it was 650 million. now it's only 284 million. it was above the minimum cash requirement, but not much. you just have to wonder, a, from a transparency and a disclosure, why aren't we getting these numbers right away it would seem to me that they're material, and b,the larger question as to whether these companies can adequately execute on their business plan with a lot less cash than they at least anticipated. >> which brings me back to iron net. that stock began trading as a public company a week ago as well we've seen a number of this. i know you've been all over it it's kind of like the next chapter of the spac discussion and concerns, risks, worries potentially for investors and folks that are following these deals, and perhaps it also speaks to the fact that many of the spacs that have actually -- or the companies that have desp

despac'd have not performed well. >> we can look at our post-deal index, and you can see that it's trading below par. there it is. that's not it. it's that one, yeah. that's the one there it is. okay hey, isn't that it that's it. yeah, post spac, i have to look at my producer kari every time because i get lost on this that gives you a sense of what's going on this is also frozen in the pipe market if you're a pipe investors, originally, you thought there'd be a pop we saw what happened the other day when they were able to start selling the pipe holders in this case with all these things trading below 10 bucks when they finally close the deal it's not an incentive for anybody to get involved in a pipe so you have that market drying up as well. >> of all the stuff that in the first quarter werp saying was s showing a lot of froth whether it was arc type funds or ev stocks or cloud, or all of those things, they all had their

little crack and they've all come back except for spak spacs as a group you talk about people say a basket of them, go short and it's worked. >> yeah. okay i think we're going to take a break now. still to come, a look at the state that needs the most help when it comes to infrastructure. but first, let's give you a bond report because it is that time take another look at how treasuries are faring this morning. we did get that jobs report at 8:30 a.m. eastern. the reaction, you can see, up a bit on yields and the ten-year we'll bring you president biden's remarks on that jobs report that will be at the top of the hour at 10:00. stay with us, a lot more "squawk new customers get our best deals on all smartphones. that's right. but what if i'm already a customer? oh, no problem. hey, cam...?

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when you sponsor a job, you immediately get your shortlist of quality candidates, ose resumes on indeed match your job criteria. visit indeed.com/hire and get started today. . welcome back to "squawk on the street." rick santelli here live at the cme hq in about a half a minute, we're going to be seeing the ultimate number, the august final for market services, pmi and

composite pmi. we just came off of what was mostly a weak jobs report outside of several areas the one i focused on up 6/10 of 1% for average hourly earnings on a month over month basis. that data series was started in april of 2006. that very first month was up 6/10 since then there has been no reads that high until we reached covid. so today's number really historically is significant, and it may feed into that wage inflation spiral, which has pushed yields up from their initial response of moving lower. the numbers hitting the wires at 55.1 that's the services pmi, so we t take 55.2, the mid-month read and replace it with the read of 1/10 less. when it comes to the composite, 65.4 is the same as the mid-month read at 55.4 they're well off their

post-covid highs but still above 50 expresses expansion versus contraction. "squawk on the street" will return after theseq■

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let's go over to bob pisani

now. he's got more on the action today. bob. >> yeah, unfortunately this jobs report doesn't help the stock market what i hear from the traders is it's playing into the stagflation argument, so we have somewhat higher wage numbers, which is good for workers, and weaker job growth. that's the stagflation story so take a look at the major indices. you can see gold likes this, obviously, up a little bit the dollar doesn't particularly. the dollar has been trending down for the last few weeks, and it's kind of blah to a negative, a slight negative for stocks overall. you see the s&p weak but not terribly weak. if you look at the major se sectors, banks up a little bit, rates up a little bit more little bit higher rates definitely will help the banks a bit. but everything else, techs we're waiting for covid to pass. that's what the market is doing. tech would be a beneficiary for any continuation of concerns around covid but everything else, you know, that's cyclical like consumer discretionary, some of the housing stocks are weak today, energy generally not great news

for that cyclical part of the economy. meantime, i think the concern here at this point is you get inflation moving and basically jobs don't move and the fed doesn't move, then you have a concern about the fed moving suddenly this stagflation story has got a little more traction as a result of the numbers today in the it all goes as estimated this will be the largest capitol race ever. the busiest by yield counts. 375 since the 2,000 internet bubble we could set record frds ipos. i know you get krizy when we talk about the tech names nobody knows about.

but you know warby parker and you know about fresh market. authentic brands that's a big brand license for no nautika and eddie bower. and other well-known consumer names believed to be likely instacart. salad green, flipkart, that's a walmart spin out there and plant-based meat products. likely not, absolutely but potential capped dtds for the fall and toast, possibly strike republic airways and electric vehicles out there. and reddit is reportedly interested in hiring for bankers. you know all these companies

so, it's going to be an exciting fall the ipo after-market has not been great this is an after market index. it means the day after they go public it's going to be -- there's the s&p 500. it's underperformed most of the year in february, on higher rates, that first many of the younger tech companies and high prices quotes the companies to move to the down side in the middle of a year and the hope right now is july and august, pricings were lower than in the earlier part of the year and you can see it picked up a little bit. hopefully prices will be more appealing to buyers in the fall. back to you. >> thank you very much a massive overall could be

in jeopardy again. joe mansion wants a pausen on the reconciliation plan that needs every democrat to pass bernie sanders said there will be no consideration of a a separate, bipartisan bill without the broader reconciliation bill. caught in the middle, the state with the worst infrastructure in the nation, which is where scott cohen is coming to us from sgl >> reporter: j you know it, the state with the worst intrastructure is maine. 48th overall with the worst power grid in america and among the worst roads and bridges. nearly 13% of maine's bridges are in poor condition, according to federal data. and about half are 50 years old or older or more your average commute is roughly

the same as in michigan, which is a state with nearly ten times the population years and years of deferred maintenance but she wants to go beyond packing the roads >> it's a public safety measure, not just measure of allowing cars and trucks to engage in commerce effectively you know in mud season, we have to close a lot of the roads because they can't sustain truck traffic, construction traffic and logging trucks we have to close many roads in maine so logging trucks and commercial vehicles. i'd like to get beyond that. >> reporter: yes, maine has a mud season that's one of the reasons infrastructure maintenance is such a challenge and why they're practically drooling over the potential funding in the instrustructure bill and another quarter billion for bridges according to the latest figures from the white

house and millions more from that states can compete from they're in a shortfall of what they need to do and can afford to do. and there's money in there for the power grid you have a rude awakening coming because broadband is poor here they hope to improve that as well >> something we're going to watch very closely as we await an infrastructure package to actually make its way through congress and become a law. and by the way, try the oysters up there they don't get enough attention. switching gears. we were talking about spaks earlier. this is one of the companies that helped popularize spaks down almost 4% this coming on the heels of an

faa investigation, due to a flight deviation for the last space flight test. there were issues around flight paths the space ship took on the test flight. faa coming out with a statement that includes saying virgin galactic may not return the 2 flight until they determine the issues related to the mishap do not effect public safety this is, in focus for investors because virgin is looking to do its next flight, a revenue-generating flight for the italian air force. ye yesterday, they released a press release saying they were hoping to do that as soon as this month or early october so, the space ship is grounded there were heavy winds at high altitudes and the space ship

dropped down slightly below its designated for about 1:41. the flight path designated by the faa. galactic says they're working closely with the faa to support a thorough review and timely that no one's safety was at risk nonetheless, shares are under pressure >> and un of the most successful spak deals when we return, president biden is going to be speaking on the jobs report just a few moments from now ke iheept re

good frooids morning we're live from the new york stock exchange in just a few moments, we're expected to hear from president biden speaking on today's jobs report it was a disappointing number, if you're just joining us. but we'll listen on the president live as soon as he begins to speak. as for the markets, well, not really much to report there. we have the s&p in negative territory. nasdaq up yet again. and some data out just moments ago and rick has that for us rick

>> yes, david. thank you. ism services index is out for the month of august and do remember our last look at 64.1 was the all-time high and it had a huge impact on stocks. we've moved down just a bit. 61.7 is the current read don't see revision to last time's historic number and it's awfully lofty, consider, it's the biggest swath of the u.s. economy. for some perspective, before covid hit, february of 2020, this number was 56.7 morgan, back to you. >> thank you we are 30 minutes into the trading session. here are three of the big movers we're watching this friday morning. rallying on a report that beijing was considering bringing it possibly under state control. stock is down more year to date.

however, it's up 7% today. plus, shares getting a boost as well after receiving approve from arizona regulators to offer and it's the second state to allow them to offer betting after iowa and you can see shares are up about 3% right now and another big mover this morning. surging after reporting a smaller than expected loss and ceo jennifer will be on in the next hour of tech check. we'll keep an eye on that stock as well. >> thank you, morgan let's get to the senior economic reporter for a closer look at the jobs report. obviously a disappointment but there are always nuances in the numbers. >> couple things were bright spots but hiring, basically, taking the summer vacation with a massive disappointment we saw in the pay roll jobs report that showed growth well below expectations and the likelihood that the surge of the delta effect was

having on the economy. just 234,000 verses the estimate and that compared to 0.5 million in july. that's reverse on your screen. earnings, 0.6 and that's unchanged. several sectors that have propelled growth in the last few months well, there were notable drags this month we'll show you where the jobs weren't this time around a big goose egg from leisure and hospitality, that had been leading. construction down 3,000. there was an expectation because of weird things in the season, this could add a couple hundred thousand jobs. and there were good job gains inmering and warehousing and the number of unemployment did fall

by more than 400,000 hard to find too many rosy data points beyond those. the number of people who said they can't awork due the pandemic is up 400,000 and an announcement of the taper in september by the federal reserve. they're on track, probably to announce it this year. the fed's going to look to see if a return to in-person learning and a hope for decline in covid cases can restore the job growth numbers we saw. we have a long way to go so, 5.3 million jobs below where we were in december 2020 >> maybe the more traditional and historical playbooks don't fly. with that being said, just how noisy, historically, do the august jobs report numbers tend to be? and how much could that be

factored in to what we could see in the next reading and possible revisions a month from now >> august is like you turn the distortion effect on your guitar up to 11 er for it's a really noisy month. and especially now because what happens is people are supposed to have been fired teachers and fired in july and june and then rehired but they wurnlt. so, they didn't come back. it was a crazy discussion i had from my go-to guy. if you look at the forecast. if you pull up the where the jobs weren't chart again they were looking for 200 plus,000 jobs in government edge indications and came in at minus 26 what does that tell you? seasonals looking for 20,000 hires. we might get that, we might not.

er for it's an important issue and very quickly, tip my hat to the he frequency data. we began reporting as early as monday that the data will soft and it did point the way to a softer report. >> and i wonder if the fact that there was this miss, the absence of the public sector jobs is one of the things that explains the market maybe not reacting in a very aggressive way? and if you average the past three months, seems there's an underlying trend you don't necessarily want to say has changed based on the number. and to your point, you don't think it sways the debate too much on what the fed is set up to do here sg

>> let's take it one by one. the idea we had a strong jobs report does take some of the sting out of it. it's not unusual to have one that falls down. the chart you have up there is quite nice we have one decline. we can build again that's one two is the big question extent to which it comes back in the september report, you're going to have an effect of ida and the most important aspect i'm watching is the end of the unemployment benefits september 6th. we need have the jobs to replace the government benefits out there. er for that's an issue we're going to have to watch and i don't think it takes ftape off the table for right now. they may take a pause to see better numbers comeback. and you're absolutely right. adding back the government jobs would have taken the sting out we're talking about a 400 to 500,000 job growth

it would have been a lot less painful if we were talking about 240. and retail trade dropping, down by 285,000 since february of 2020. joining us to discuss the state of retail is shopping center president and ceo, which has recaptured all lost sales from the pandemic on a trailing 12-month basis just given the fact we're so focussed on the labor market in the jobs picture right now, given the fact you've seen that recovery, do you have enough workers to continue to manage it >> i did a pole of all the managers around the country and basically the last 30 days have been status quo. there are a lot of job openings, they're finding some workers and it's a matter of how much they're willing to pay we are seeing hiring but it'sler tied together.

it's tied to the delta ariant and people being nervous about going out. we're still seeing the surge in traffic. but it's similar to the jobs report >> when you say people are goin out but it's hitting a pause, are you seeing a pullback in certain locations or certain types of businesses? >> good question we're seeing more of a plateau to be honest, over the last six months, since march, we're seeing a huge surge in traffic and sales as people are excited to get out of the house and go shopping and in august, the feedback is not that there's a distraction or reduction in traffic but that we expect july to be consistent with august. so, that, in june and july we saw 10% increase in traffic. we're expecting that to be flat or up a little bit we're not seeing what we did in

july but it hadn't gone back the other way. people are excited to get out of the house. vaccines are out there it's just that there's a little bit of trepidation hitting a plateau. >> got it. >> in terms of the employment picture and the willingness, not only to hire but what you're going to pay, have you increased pay to continue to get more people on board and are you still actively hiring now, given the uncertainty around covid >> we are the landlord, the owner of the shop incentive. so, ours is not nearly as much as the retailers the we're seeing increases in pay through many of the retailers. it's really the stuff you're seeing in the news that they're increasing pay to get better employees and better pay people. and it's been working. i think the quality of employee has been going up, customer

experience is getting better and more people are going back to work prrls but i think there has been a pause due the surge. >> and given what a lot of you leasing from you have gone through and paying potentially higher wages, seeing margins down, what have you done on rent and forgiveness? are you back to where you were in 2019 or still a long way? >> actually, that's an exceptional question because we did a lot >> our retailers during the pandemic, middle of the pandemic last year, whether it's paying a little rent. there were some that thrived during the pandemic. but since then, the sales have been up. and tenant after tenant, retailer after retailer is exceeding expectations the gap came out with the great earnings report this week. and on top of that, you have the fact that they haven't had to markdown a lot of merchandise.

and tell me the restaurant industry is a great example. the restaurants have been phenomenal and creative and innovative. so, now you have the summer. so, people are out in the patios and ornn top of that, you have doordash and urb eats. if you sit in the restaurant, you'll see 50 to 75 meals coming out of the kitchen, not contribute took the occupancy. the restaurants are picking up all those sales. it's really helping profit margins. and in 2020, they were the hardest hit but doing very well right now. it's been a good relationship for retailers over the last six months >> all right josh, thank you. great context and color as we talk about jobs and as we talk about things like services data. we appreciate it >> thank you still to come we're going to take you live to that building

t wteouere,hehi hse president biden is set to deliver on the jobs report

introducing xfinity rewards. our very own way of thanking you just for being with us. enjoy rewards like movie night specials. xfinity mobile benefits. ...and exclusive experiences, like the chance to win tickets to see watch what happens live. hey! it's me. the longer you've been with us... the more rewards you can get. like sharpening your cooking skills with a top chef. join for free on the xfinity app and watch all the rewards float in. our thanks. your rewards. welcome back to "squawk on the street." >> not necessarily relalted but in general, core logic out with estimates up from hurricane ida.

between 27,000,000,040 billion is their estimate in both insured and uninsured losses and that's just the gulf states. most of it, louisiana, the analysis shows 70% of the flooding is not covered by insurance. and 46 of the damage won't even be covered by wind policies. meaning home owners didn't secure the coverage. insurance industry says they're simply ignoring the rising risks of severe weather. home owners who get properties in what fema dictate as 100-yea flood zone have to get flood insurance. er for it's mandatory. past those boundaries, it's available but 96% of the people choose not to get it if they don't live in that zone. we were told by the ceo of neptune flood insurance, in miami, the sea level has gone up six inches in the last 30 years

and will go up six more in the next 15 years. higher seas means more flooding. what you see along the coast of the united states today is climate change in action insurance companies have no choice but to raise prices to help pay for the increased damage in california, as the caldor fire threatens south lake tahoe, it's another year in a series of the most devastating fires on record burning hotter and longer. and yet, the insurance broker and risk management company says companies and home owners often down grade their own risk, rebuild in the same fire-prone locations to the same building standards. so, you have them limiting their wildfire exposure or quitting offering coverage altogether so, securing coverage for these home owners and businesses often means specialty coverage you've got businesses paying ten times more than what they used

to with deductibles of a million dollars or more. the increases in rates are going to be kmizerate with where you are located. >> i mean, it raises the question you have so much damage not covered. folks rebuilding in areas already risky. so, you can argue the risk assessments are not matching up or not strong enough or realistic enough >> number one, the data is out there. we know because of advanced satellite imagery and other technology you can find out what your real risk does of flash flooding of rivers flooding. and remember, fema's redrawn those grounds. gallagher told me they need to be upgraded. zoning needs to change logic says you need to go in and

there's less fuel for the wildfires and get commitments from entire communities to do the same it's expensive to do that. building to updated building codes requires an investment remember, many end up walking away, leaving the keys on their counter and that efefects all of us and the increased rates are going to effect all of us, no matter where our actual property is located >> pushing things across the board. thank you very much. appreciate it. still to come, we'll speak to goldman's jan hatzius on the market and index is firming up from the open and nasdaq moderating the gain, up about one-sixth of 1% and the

s&p just below the flat line s&p just below the flat line we'll be right back.gs at me. it's also why we use workday. it gives us insights, so we quickly pivot our strategy, people, planning, you name it. sorry, sir. workday. the finance, hr, and planning system for a changing world. ♪

time for our etf spotlight,

looking at the semiconductor up year to date despite one group to watch is broadcom and reporting stellar sales. up about 2%. for more, good to see you today. you know, it's interesting the commentary we sited earlier by broadcom essentially saying they're rational supply to customers according to the valuation of where it's needed and people over ordering how does that speak to the environment in general and investor's perspectives on this group. i know you were responding to concerns from your client about what ultimately what the supply chain is going to bring. >> i actually think broadcom is

doing something interesting. the back log has swelled to about 80% year over year however, they're trying to prevent a future problem of success inventory. they did share with their other companies. look, at the end of the day, they're a cyclical industry. we gross somewhere between 2 and 10%. we're on par with that upper end of the spectrum in the last year or so. and i think what everybody's concerned about and i've never seen anything like this in the last ten years, where the management's tell us they're best they've ever done, while investors tell us they're the most fearful they've ever been and investors, in particular, are looking for an end to the cycle, probably end of 2022. that's what we keep hearing from russia i think they're doing something really smart by limiting excess put into the distribution channel to avoid later problems. >> if there is that disconnect

between investor's expectations for the cycle and what you're seeing in terms of how the company's behaving or what demand is going to look like through next year, obviously that would suggest stock opportunities within that? >> absolutely. we suddenly came to believe that broadcomis in the best position large cap companies. we recently did a defensive analysis and broadcomcertainly came out on the top the software business is extremely sticky infrastructure bill is sticky. they deal with the best of the best clients apple is not goic anywhere that's extremely sticky. revenue, cash flow and all those metrics, broadcomcame out at the top. obviously there are other opportunities when that happens.

>> it sounds like you don't buy into the concerns of peek cycle. what are some of those key data points or other indicators that would suggest otherwise to you >> sure. so, used to be we would have too money companies and they would compete to get market share, cut pricing, things of that nature we have now consolidated dramatically, as you're aware. as a result, there's just a handful of companies these companies have nonchangeable, nonchangeable back log orders. ceos demanding product so, that high level of interaction and commitment of nonchangeable orders, that stretched up to a year in the future that is what tells us there some level of life in the market. i think their concern is

certainly right. sort of the last 25 years with cycles but i think it's something worth watching the industry changed to become more stable and profitable >> thanks very much. appreciate the breakdown >> thank you news update now and for that, we're joined by rahel solomon. >> president biden will travel to louisiana later today he'll be surveying the damage from hurricane ida biden is promising the federal government will play a big role in federal recovery after the storm. and police shot and killed a s sri lanka national they were already trailing the man due to his extremists ideology the attacker was inspired by the islamic state but not directly connected with the group in a massachusetts court

room, the judge entered a not guilty plea for the former roman catholic cardinal accused of attacking a 16-year-old boy. and thecompany has made what the e.u is calling a firm commitment to provide 300 millio millio million doses next marchworld'st fully autonomous vehicle is almost at the finish line today we're going to fine tune the dynamic braking system whoo, what a ride! vesco qqq today we're going to fine tune the dynamic braking system a fund that invests in the innovators of the nasdaq 100 like you you don't have to be a deep learning engineer to help make the world a smarter place does this come in blue? become an agent of innovation with invesco qqq

> taking a look at shares of chevron. and they succeeded, exxon mobile may be -- i can tell you from

one source familiar with the conversations that engine one is said to have spoken to many different oil companies, not just chevron engine one, listen, one of their goals is to help the planet, i guess. but i'm sure their main goal is to make as much money as they can. and the way you do that is raising a lot more money, increasing assets under management and you want to keep going. you got momentum, power and you want to use all of that to your advantage to keep your next idea in sight and raise a lot of money. so, that is not unexpected unclear who they may target. and don't expect it to be chevron, which has been fairly out in front and differs in exxon in that they don't have quite as ill tempered a shareholder base perhaps, given the years that went by that

exxon mobile did not really communicate. really to be fair, under previous managements but the current management may have born the brunt of that hostility. so, we'll see. engine one is a power, even though they don't have a lot of assets under management. >> the big energy companies, they're well on board this energy transition story. it's not like they're saying there's no issue they realize they have to build for a different type energy future and they're doing so. >> and you can see over time, chevron has done quite well. the question is many are still questioning whether a real commitment is there and whether we'll announce anything of significance and/or create a profit opportunity for the likes of exxon >> there's money to be made now and it speaks to the fact that -- and we reported on this.

we did a package on this earlie this week. it's still murky and that's why you see entities started took take a closer look as well >> and carbon in general, footprint. we can't be confident in the numbers. they're being revised all the time >> got to wonder what all the terrible, awful wildfires do to the entire picture as well it's just all interconnected disappointing jobs report as nonfarm pay rolls are up last month, well below street egsimates of 720,000 goldman's chief economist joins us to briek down the numbers great to have you here on jobs friday the headline number missing by almost half a million in terms

of expectations. you look at some of the other numbers. wage gains, for example. 4.3% jump year on year, in terms of that data point >> i think you characterized it well it was a big down size surprise in terms of the headline number. directionally, i think it had become clear go nothining into e report that the consens expectation looked ambitious so, we weren't too surprised directionally but quite a weak number i do think it's pretty clearly driven by the virus, by the delta wave it was very concentrated in leisure and hospitality. so, i think it's very important to look at what's happening on the virus front. i would say there are some signs

of stabilization and improvement. hospital admissions have started to move down the positivity rate has been lower over the last couple of weeks. so, i think there is reason to believe that the situation has improved somewhat and we'll get better numbers in coming months. and as you say there are offsets to the disappointment in the headline number. the survey was pretty good unemployment rate came down. broader unemployment rate came down by four-tenths and there was another big wage gain. there's a more mixed picture you would get from just focusing on the headline emtployment gain. >> when you have a september that schools are reopening and the stabilization in terms of the delta variant. you have the sun setting on

enhanced unemployment benefits and the like that are going to play out >> i think there are a lot of moving parts and in the short term, i mean, the reality is inflation has come in much higher than anybody expected and at least recently the surprises on goals have been on the down side and we've been cutting our numbers and a lot of people have been cutting their numbers. so, if you want to call that stackflation, i think that's reasonable in the short term i think into 20 twoo22, we're g to see a sharp decline in inflationary pressures some of the biggest drivers in inflation for example in the auto industry, i think a lot of that is going to reverse and if you look at the labor market, upward wage pressure has been, in part, related to

enhanced unemployment benefits, which are expiring at a federal level and i think that will result in lower wage gains as well i think next year the picture is going to look quite different and not quite as inflationary. >> certainly within the framework that fed chair powell played out there, that basically there's passing forces that will allow inflation to come down to some degree. andthem fed seems to have succeeded in convincing the market that it's not particularly a strong signal for when they may raise rates at this point even if the labor market is acting tighter than you would expect given still the number still not working. >> that's correct. i think the end of the tapering process is not going to

automatically mean rate hikes are coming our best guess is tapering starts later this year you know, november announcement, maybe december announcement. and i think that's broadly in tact, even after the weaker number today it takes until some time next fall but then takes another year before the funds rates starts rising in our forecast because by the second half of next year, we think we'll be much lower inflagtion rates and probably slower growth and in that environment, i think the fed's going to want to wait until you're back at 2% plus for inflation. and also somewhat firmer growth. er for that's going to dependen the data we have a fair amount of visibility on the start of the tapering process because the fed's been, you know, willing to

provide some signaling there but in terms of rate hikes, so many things that could happen between now and then, that it's hard to be confident of that >> we're showing video of the white house right now as we do await president biden expected momentarily to make comments on this august jobs report and the state of the u.s. economy. in the meantime, given the broader conversation that we're having right now, how does this speak to your forecast for u.s. economic growth moving forward >> i mean, we have been lowering our numbers on the back of the delta wave that has been clearly a significant drag and i think today's number, especially in leisure and hospitality is very consistent with that. we're now looking for 3.5% growth in the third quarter. that's come down significantly over the last couple of months

i think we will get a recovery on the virus front so, i think you'll see some make-up growth in q4 but longer term forecast, is going to be much lower in 2022 we're going to have a negative fiscal impulse, basically as a pay back for the large amount of stimulus this year and i think that's going to mean slower growth and again, it's very important, obviously, for the point of lift off for the funds rate, as discussed. >> you just mentioned the fiscal piece of the puzzle. obviously, infrastructure is making its way through congress and i understand there's question marks around what the final number could look like

cut myself off we're getting to president biden now. >> getting ready to head down to louisiana. and look, as we head to labor day weekend, we have more evidence of progress from last year's economic calamity today we learned the economy created 235,000 new jobs in august the unemployment rate fell to the lowest it has been in 18 months but despite the impact of the delta variant and i'll talk more about that in a minute, what we're seeing is an economic recovery that's durable and strong the biden plan is working. we're getting results. america is on the move again today revision of previous month's job gains with revision of july numbers. this report means that we have been adding an average of 750,000 jobs per month on

average during the past three months and in the three months before i became , we're adding 60,000 jobs per month. total job creation in the total seven months of my administration is double any first-year prior president i wanted to see a larger number today. what we've seen is continued growth month after months in job creation it's not just that i've added more jobs in the first year, of any 36z, it's that we've added more jobs in my reports and earnings are going up. some months are fewer, some months more but always adding jobs this is the kind of growth that makes our economy stronger, consistent, progress and not boom or bust our economy grew at the fastest

rate in the first half of the year, in 40 years. the only developed country in the world whose economy is now bigger than it was before the pandemic because of the ground work we laid with the american rescue plan, our vaccination strategy has seen a job market that can weather the ups and downs of the delta variant. i know we have a lot more work to do, as i'll discuss shortly but the facts speak for themselves think where this country stood on the day i was sworn in as president, compared to where we are today. the number of people filing new claims for unemployment is down 57%. down 57% job poverty is down near lee 50%. we're no longer seeing long lines of people waiting for boxes of food to be put in their trunk, after waiting for hours,

sometimes uch to two hours unemployment rate is down. and i believe it's going to continue to go down. and it's no wonder that last week's gala pole found 72% of americans think now is a good time to find a quality job at this time last year that number was 30% and that's the mark of an economy where regular people can see a place for themselves the holidays we celebrate this weekend, labor day, is about honoring the dignity of work, honoring the american worker and that's what our economic strategy is about as well. it's about growing from the middle out and my dad would say just a little breathing creating an environment where employers have to compete for workers by providing higher

wages and better benefits. that's what's happening. wages are up, especially for working class americans. even though, eve within the progress we've made, we're not where we need to be in our economic recovery. there are two critical tasks ahead to get us closer to our goal first, when we need to make more progress in fighting the delta variant, covid-19. this is continued pandemic of the unvaccinated since becoming president, i've ramped up testing, secured enough vaccine for every single american and got 175 mill ynchl fully vaccinated still too many have not got vaccinated and it's creating a lot of unease today's report shows the steps we've taken, pass rescue plan

make our economy, even in the face of this continuing delta surge. the strength in our economy is very different than last winter. there's no doubt delta variant is the reason jobs report wasn't stronger i was looking for a higher number but next week, i'll lay out the next steps we're going to need to combat the delta variability to address some of the fears and concerns want to talk about how to further protect our businesses and from the delta variant the american rescue plan continues to support families and businesses even as some of the benefits are set to expire next week. and the federal resources from the rescue plan to do so

not federal taxes, state taxes but they had federal money to do that states continue to have access to a wide range of support, like help for schools reopening, help for child care centers to make them affordable, available and other resources to help our economy go forward enable us to grow our economy, even as we continue to combat covid. we are adding jobs, not losing them the fight against covid today is far different from the fight we were waging last winter. the seconds thing that has to happen in september is for the congress, house and senate to finish the job of patszing my economic agenda so we can keep up the historic momentum we've

been building these last seven months n vesting in america's future that's not what we're talking about. these are long-term prosperity we're talk about lowering the cost of living for families it's about reducing bottle necks in our economy, reducing long-term price pressures. it's about helping more people to work by helping ease the burden parents bear, especially mothers, keeping them out of the job market both senate and house have taken important steps forward to pass by bipartisan infrastructure bill this is going to end years of grid lock. remember, we always had, i guess it was every week, was going to be infrastructure week both literally and figuratively, it's going to change things on our streets across the country

and figuratively we're going to create millions of good-paying jobs, ease inflationary pressure. and moval to a global economy where the competition has become more intense its historic investment rose in transit and bridges. it's going to modernize our energy component need look no further make our roads and highways safer, make us more resilient to the kinds of devastating impact from extreme weather across the country and this is about good-paying jobs for ordinary people not $15 or 20 or 30 but for the carpenters and pipe fitters, electricals and other americans

about 90% of the jobs we create won't require a college degree it will fundamentally transform the lives of millions of people. transform america and propel america into the future. just the country with the tba look, at the same time the house and senate have to advance the build back agenda bill with critical investments in child care, to make it easier for families to be able to go to work and assure their child is being taken care of. home care for seniors. the polling data shows your greatest concern is caring for your elderly parent, more than your child it is about paid leave, allowing people with a new child or a sick spouse at home to take care of them without risking losing the paycheck for a time period

they can actually make a difference universal pre-k and community college, making it significantly better educated and increasing the global competitive edge around the world over time we'll combat climate change by building the clean energy future with millions of jobs and windmills and solar panels around the country and transferring that energy, trance mitting it to parts that don't have the capacity. bring down the cost of prescription drugs allowinging medicare to negotiate prices look so much more here's the thing you need to know we're going to deliver the investments without raising taxes one cent on anyone making less than $400,000 a year. how are we going to do it? we'll do it by leveling the playing field. by just having a fair system.

>> you have been listening to president biden of course. he began his remarks on the jobs report this morning talking about of course the long-term job growth under his administration, decline in unemployment rate but a disappointing jobs report for august something he did seem to point to in part due to the delta variant and now discussing the broader economic agenda and the things hoping to achieve but 175 million fully vaccinated saying that's not enough reminding states that they can extend been fits in terms of schools, child care and indicating that next to have some things about next steps in terms of combatting the delta variant. >> yeah. to your point as we exited that conversation, talking about infrastructure and the plan there and the push to see that actually get passed through

congress and see the dollars begin to get deployed and the so-called social infrastructure package behind it noting where infrastructure is concerned i think 98% of jobs that the infrastructure package to create won't require a college degree just speaking to trades people and types ofjobs and tunes that's going to create and where within the labor market. >> nobody would hope for a relatively weak jobs number, a day after senator manchin publishing an op-ed saying this economy doesn't need it. the risk is higher prices and overheating is an opportunity to reiterate why he wants it passed. >> investing in america's future he said. >> yeah. we all will agree that this jobs report was far less than people hoped for. we are keeping an eye on markets. s&p not quite in the green but

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for us as executives as a well-known hedge fund paint a big number to the irs, aren't they >> it is in fact the largest in history top executives agreeing to pay up to $7 billion to the irs to settle that tax dispute the founder will pay additional $670 million other executives expected to pay up and the ceo brown saying in a letter a settlement by the medallion fund avoided a worse outcome including penalties. this does not affect outside investors in renaissance since it is only for employees and friends of family of the firm. medallion's tax strategy was revealed in 2014 and battling since through the appeals process but it was a basket of options in deutsche bank and

barclays with a group of stocks than buying the stocks allowing medallion to book short term trading profits as long term capital gains so they paid a 28%. senator levin calling it a giant game of let's pretend. clearly that game is now over w back to you. >> the late senator was always focused on the issues. he was tenacious it is worth mentioning the medallion fund and more from the hedge fund perspective is by far the best returning and the one for the internal money, the partners' money opposed to public facing funds without such strong returns. >> that is a source of contention amazing year last year it's also interesting i went back to the 2014 hearing you talked about carl levin and

13 hedge funds that practiced this strategy. the only other one is george weiss associates i reached out and didn't get a response we'll see what the others have to do. whether we see more hedge funds saying they'll settle. >> robert, just given the fact that medallion had great performance suggests that this money not paid in taxes is probably compounding at a high rate and maybe hurts less to pay out the settlement than it otherwise would. >> yeah. it is the investors who have done well over the year just sort of a dual class of investors within medallion some have to give back the returns and some plus interest this could be a big paycheck and jim simons worth over $23 billion and will be okay

morgan >> all right robert frank, just to put that in context, thank you for that report. the s&p is fractionally lower. here on this friday morning. nasdaq higher. that will do it for "squawk on the street." "tech check" starts now. ♪ >> happy friday. welcome to "tech check." carl and deirdre are off today big day for enterprise earnings interviews with ceos as a couple stocks rocket higher plus apple hits pause delaying the rollout of the feature to scan devices for child sexual imagery and then a sharp rebuttal from robinhood on