we will get you ready for what could be a messy number. it is friday, february 4th, 2022 "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc i'm andrew ross sorkin joe and becky will join me later this hour. they are live at the at&t pro-am at pebble beach. they have a huge lineup. club ceo john stankey and disd discod discovery ceo david zaslav and u.s. equity futures at this hour. it has been a roller coaster of a week with earnings and jobs report coming today. dow looks like it will open down

58 points. nasdaq pourwering higher. we will explain on the back of the earnings reports 137 points s&p up 11 points finally, let's talk treasury yields 10-year note is looking at 1.815. our top story is the big move of the tech stocks. let's go to dom chu who has stocks to watch. likely moving up >> up, yeah. all the volatility over the last couple days have been crazy for investors. we will start with the big headliner this morning shares of amazon on the rise in a very big way in the pre-market the giant posted strong quarterly results in large part from the amazon web services division, which grew by 40% year over year. amazon got a boost from investment in electric vehicle

maker which made $12 billion in quarterly results on paper amazon shares, up 12% right now, but they were down 8% in trading yesterday. a bit of a claw back effect. a theme i'll show you. that's number one. shares of snapchat moving higher snap is the parent company surging a lot. the company beat estimates on every metric that matters. top and bottom lines many user growth and better forecast those shares up 46% right now. to put it in context, they were down 24% just in yesterday's session. again, a clawback effect there we hit another social media star this morning pinterest which is up big. topping estimates for profits and sales. monthly active users did fall over the same time last year, but average revenue did rise by

23%. in context, 15% gains today. they were down 10% in trading yesterday. andrew, with many of the companies, the moves are very impressive, but if you put them alongside what they did yesterday, they have ground to make up. >> dom, i want to talk about inflation for a second because amazon announcing a price hike for prime service. up $20 to $139 per year. what do you think? too much >> 17% that's a lot we are seeing cpi and ppi numbers up 7% and 8% at record high levels. i would say for those who pay prime memberships, i'm not sure this causes many to drop it. i don't know how many viewers are like our household, but certainly before the pandemic, we used prime services i'm not talking about the music or movie side. just the shipping alone was worth it

during the pandemic? forget about it. we had amazon packages every day on our door step i know we are going to suck it up and pay the extra $20 it is a cost of business for tou family. >> i did math on this last night. you may want to disagree with me >> okay. >> i think you could go almost all the way to $400 annually for a family of four if you look at some of the metrics that have come in over time. if you have a prime visa card, you get 5% back on everything. effectively pays for itself. if you are a single individual household, at some point it doesn't make sense maybe after $180 when you start to think of families of four or larger and the amount of spending, there is a lot of room for them to go one other point. almost off topic we put amazon and pinterest and

snap and talked about them together we did not talk about it in this context. they are advertising companies advertising revenue. number three player in the country. >> we knew it. they just broke it out for the first time we already had an idea it was going to be alphabet and facebook and amazon. i think to your point, andrew, the interesting points about the idea of the cost inflation issues and it is a tansgentle topic. whether it is at the gas station or grocery store, the solution about the amazon prime visa card or credit card, it is a good one. i know i can justify my costco membership because i use the costco visa card which is the cash back card with the amount of money for the family of four with two dogs, i

more than cover the cost of my costco membership. you can do the same with amazon. you have to be creative. >> you have to pay your bill at the end of the month >> if you accrue interest, it goes out the window. >> dom, we will talk more over the next couple hours. let's get to phil lebeau with the ford earnings phil, talk about it. the opposite story this morning. >> reporter: the stock is under pressure, andrew this was a miss. a wide margin. 26 cents a share profit. the expectation was 45 cents a share. experts say the analysts are off a bit. not this much. what was the issue here? the charges? rivean going to market in terms of expectations or outlined? they knew about the charges and rivean they were a little bit ambitious in volume and pricing and what

the they expected in the fourth quarter. nonetheless, the focus is on 2022 the guidance, generally, is above what most people are expecting. when you read the notes, they cleared the bar in terms of guidance expecting to make $11.5 billion and $12.5 billion. that is up 5% to 25% on vehicl volume that is expected to be up 10% to 15%. put it together and the expected margin of 8% the focus for the second quarter and the rest of the year will be what is happening with the ev portfolio that ford has been building and the tent pole is the f-150 lightning is on track for deliveries they will start deliveries this quarter. it has 200,000 lightning reservations they are targeting 600,000 of ev

production all together, including the lightning, by the end of 2023. last night during the call, ceo jim farley doubled down on ford saying we are an electric vehicle company. >> we're done with the incremental change we have a clear plan and strategy and whatever it takes mindset. we are confident our business will generate the capital we need to fund a very exciting future >> reporter: the auto revenue was a little shy of expectations it has been growing at a steady clip look at ford shares under jim farley no doubt they continue to be impressive in terms of the performance is impressive they are under a little bit of pressure with thefourth quarte miss in revenue. andrew, the pivot you will see within the auto industry with the different players with veh electric vehicles will focus on

margins and where the margins on tesla is ahead of everybody else you look at the auto margin. ford is considerably behind where tesla is, but jim farley says we will grow margins and do it rolling out evs as you know, that will put pressure on margins. he said we will grow them as we plow money into the ev business that will compress margins until they get up to scale >> phil lebeau the lightning is a beautiful truck. i don't know if i like the lightning better or the rivean better to be continued. >> high expectations, andrew >> we have to move on. we have the squawk planner. a big jobs report coming the january report is coming out at 8:30 a.m. eastern time. the report could show omicron causing the steep decline in payroll over a year. economists sur vveyed expected

see a gain in january. the range here and predictions are wide we have some expecting lossesup to 400,000 jobs. stick around we have more news coming up. coming up when we return, more on the jobs report. frank will join us with the focus group and new data on people who quit their job during the pandemic you have to hear what he is saying. and later, david dorman will join joe and becky live in pebble beach then the ceos of at&t and discovery. you don't want to miss it. you are watching "squawk" here on cnbc. >> announcer: squawk planner is brought to you by workday. the work system for a changing world. be ready for whatever's .

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welcome back on "squawk box. nasdaq futures are higher. losses for the dow are off 176 points we will see where things go. the jobs report for january is now two and a half hours away. economists have a wide range for the month. hit hard by omicron. we are seeing some numbers as high as 400,000. pollster frank luntz hosted a focus group with a dozen people across the country all

voluntarily quit their jobs during the pandemic. >> a lack of connectivity with senior leadership and the rest of the work force was a deciding factor >> they made people come back into the office at the height of it, of that first winter i have a family with health conditions and i need to quarantine and go back home to see them safely. i wasn't going to be able to do that >> i spent the entire time writing policy about how people should interact and how employees should interact with customers. i was in the comfort of my home where at the time my rv in the driveway because we didn't have room in the house. you know, it was so difficult. i couldn't take it any more. >> joining us now to discuss the great rethink ahead of the january jobs report is pollster and political strategist frank

luntz. frank, fascinating to hear people and explanations why they quit the question i would ask is what -- everybody had a different view was it idiosyncratic what is the trend? >> underneath it it was hosted by the labs with a study of men and women the responses are the same three points number one, senior leadership in the companies are not listening to their employees and anxieties and concerns they want to go back to normal for the employees, it is not normal number two, life is beyond compensation this is not just what you get in your paycheck. it is work/life balance and choices. the environment you are in number three, they he are thinking about the families and their own personal priorities.

things have changed, andrew, s significantly and i believe the corporate america doesn't fully get it they are driven to work. they don't have to mix with the average individual they get a chance to live a different life we used to talk about this division with the top and bottom in corporations. honestly, andrew, to be candid, i would in some ways ignore that i can't ignore it anymore because of the focus groups and polling they were doing right now. it is proof to me that the ceo or cfo and cio don't understand the hopes, dreams and most importantly, the anxiety and fears of the average worker and it will come back to bite them from the months ahead. >> what are the things that the great resignation has raised for me is -- and i know there was a lot of stimulus money put into the system for a long time, folks like you have come on the air and talked

about the average american with less than $400 in their pocket for an emergency it is startling to see if that is true, so many people say, i don't want a job so -- do you talk about their household economics and how they are doing this and how long this can persist in this way? >> yes what they are saying is that there are things more important than household economics there are priorities and they want to hear from corporate leadership and what they plan to do in the months ahead do you come in do you have blended? there were ages 25 to 49 employees and many have children at home. that adds a challenge and ifrnt c different component to the equation >> are they taking on debt to not work how are they affording to do

this for what may turn out to be a lengthy period of time, especially as we talk about inflation? i understand people are trying to balance things. at some point, there is no balance if you can't pay the mortgage or rent >> that's true these focus groups, people in most cases have found new jobs the emphasis is not that people aren't working they are they are working in different ways and different places and sometimes in completely different careers. based on the numbers we have, andrew, and i don't mean to be provo provocative, one of three should look for a new anchorship over the next 12 months we are reevaluating and reimagining what we want to do and there are so many jobs out there and opportunity out there. they are choosing to work in a different place and different way. >> so when you look at the ceos or businesses you think will

succeed in the future, what does that look like i ask because there's a lot of businesses, especially in new york around wall street, that still believe having people in the office and office culture is critical to building and maintaining a long-term business >> the expert in this is abby, the leader of convert labs she comes up with five recommendations. number one, you have to tell your employees in person that they matter. email is not enough. a text is not enough they need to see you number two, you have to do the listening sessions more now because these problems pop up. people want to feel and know they are heard number three, it is not just compensation as i said before. it is work/life balance. do i get to stay home with my kids do i get to make choices for my family and prioritize them not just the job number four, they want ceos to

speak to them as they are human beings and have a conversation number five, be appropriate. they don't want someone who wears a suit normally to be in a short sleeves. treat your employees like you treat your friends and colleagues on your level make sure they understand you care about them and give a darn about them if you do, the employees will stay andrew, if you don't, i promise, people watching right now and i guarantee it, you will have continued quitting and continued instability in the work force. >> frank, i have one last final question maybe it is my bias. i like to see people and obviously people were built to see other humans often times in person. you said on your number one item was that for the boss/employee relationship, they have to see

each other eye to ryeeye and be person how does this play to the hybrid life that people talk about? employees all over the country working far, far away from quote headquarters." >> it is a combination it cannot be one way there has to be the idea that what matters on the first of february matters on the first of march. corporate leadership and flexibility. go to the web site for more details. there is an outline. you can see the focus group there. >> frank luntz thank you. i appreciate it. we will see what the jobs report turns out to be in just about two hours from now coming up, positive sciigns that the omicron wave has peaked we will take a close look at numbers next. and alcohol sales returning

to flights will it make the skies more friendly i don't know about that. or will it add fuel to disruptiveasngs. pseer we have squawk booze news straight ahead >> announcer: this cnbc program is sponsored by baird. visit bairddifference.com. hi i'm joe montana. when you get to be 65, you have little patience for nonsense and inefficiency. you know what works and you become a pro at pretty much everything. ♪ ♪

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at fidelity, your dedicated advisor will work with you on a comprehensive wealth plan across your full financial picture. a plan with tax-smart investing strategies designed to help you keep more of what you earn. this is the planning effect. welcome back covid hospitalizations in the u.s. continue to fall. the seven-day afteverage is down 16% from the average 15 states and washington, d.c. have patient counts below recent weeks. connecticut, maryland and new

jersey are close to 50% below peak deaths are ticking higher reaching the seven-day average which is off the levels of january of last year. southwest airlines bringing back booze on flights this month. after two years without it the move raised tensions with the airline and flight attendants union which called the resumption of alcohol sales unsafe the mask mandate in place with the alcohol sales has the great potential for increase non compliance and misconduct issues alcohol sales were suspended because of the unruly passengers as long as the mask mandate is in place, i side with the flight attendants. coming up, more on the big moves in the market. fo futures are a mixed picture.

nasdaq is coming down off the back of the amazon earnings news dow is off 155 points. s&p off 200 points amazon shares are rising after a big beat it was down 8% yesterday it is just coming back we will talk to an analyst in a couple of minutes. as we head to break, the look at the s&p winners and losers

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good morning welcome back to "squawk box" here on cnbc a bit of a mixed picture nasdaq powering higher on the amazon and s&p off a point. right now, we get out to joe and becky live at the at&t pro-am in pebble beach they have a huge lineup this morning. good morning, guys >> good morning, andrew. >> feeling so alive.

>> so alive. it's 3:30, right >> dark and early. >> dark and early. you have a cool crowd you are bringing us. >> we don't get off east coast time it is early out here you know, one week does not get us off our schedule. that's the way i felt okay about the 1:30 alarm setting today i kept adding that back in it is really 4:30. that's an hour later than it normally is. it is big. we have guests, andrew the one issue, it is early the other thing, there is optics, i think, for some of these guys there are people here, andrew, this was almost like sun valley with the tournament. a lot of people are here a lot of people. donahue. dave calhoun and dave wirth. >> give us a behind the scenes.

>> then i have to kill you there were moves at cnn that i heard about. >> we have the right guest for that this morning, too >> i was in the vicinity of those guys when the news came out. they were shocked. i actually said did you know about this i don't know who knew. these are the guys in charge it is good to get the inside story. >> john stankey of at&t and david zaslav of discovery will join us. jeff yang. i'm excited to hear what he thinks about facebook and amazon >> what is the mood out there? facebook on wednesday. everybody thought the world was over yesterday, it was like opposite day. what are people saying >> it's not quite like sun

valley the mood out here is the greens are like 14 on the stimpmeter. that is abject fear of the down hill putt. there is other stuff on the course you know, the conversation comes back to what you talked about. the media landscape and which way to go. everybody seems like they have to do something. last night is all off the record is that off the record >> yes >> never mind. >> i will also say some of the con are vversations that take pe are when are people getting back to work and the plans. people are feeling better about things they think we are getting more to the point where this is endemic and not pandemic >> omicron turned out in the uk. andrew, i don't want to get into this with you. if you look at the actual details of people who had it a couple of times and where the actual mortality rate is and who

it effects now and it comes down to the point where it is a different virus than it was a year and a half ago. in certain places around the world, things are totally open out here, they he are still closed i see masks everywhere >> i wear a mask a lot i'm not afraid of you at this point. >> i don't think -- what i have -- a mask is not the cure >> right andrew, some of the conversations happening here are due with technology with the selloff. the question is will this impact the ipo market will it have down issues for investors? we talked about that last night. these are all issues people are considering. it does feel like a bit of inflection point >> yeah. i don't know, andrew you are a big meta guy i guess i'm going to have one of those on and i'll be playing

pebble >> you are sitting on your couch. that is what will happen you will have the view the weather -- >> maybe shooting par. that's the only place that it will happen. >> look, after not traveling for a while, it's really good to be back in the position where you see people and remember things that can't get done over the phone. it does take in person that is a topic of conversation. can you convince workers to come back in the city maybe not five days a week a real push and movement of trying to normalize things in two years where people haven't been face-to-face with staff, that creates conflict and uncertainty and i think that is the issue. >> since were you just flying, how do you feel about southwest? did you hear the story before you got on booze news on southwest.

what do you think? >> are they bringing the booze back >> bringing the booze back >> february15th. for valentine's day. that's nice. >> maybe a little soon. >> no unruly passengers on my flight. >> no alcohol on your flight >> on united >> i didn't see. >> i was flying in the middle of the day. nobody was drinking. >> i was. >> i didn't ask for a drink. >> the six and a half hours with the mask was unpleasant. it was unpleasant for me >> i was okay with it. i fell asleep. i was okay >> sip, mask, bite, mask seriously? >> by the way -- >> i've had it i'm triple vaxxed. i had a runny knnose for two da. >> they said is it okay? i'm not getting it from him.

he's good. >> joe, they are saying we have to wrap. an n-95 duck mask. duck bill mask looks weird i don't know if you have seen one. the most comfortable and breathable masks you can get of that category. i will get you one >> it's an n-95, not an kn-95? >> it is a scary shot from back -- when was it? 100 years ago. remember those things >> when i go on long plane rides, that's what i wear. it is a lot easier. we will see you in a little bit. we are so psyched for the interviews we will take you live to beijing where the winter olympics are kicking off. eunice yoon will join us from china ofafter the break. futures are a mixed picture.

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the winter olympics kicking off in beijing let's get straight to eunice yoon with the latest i was going to say good morning, eunice it is evening to you how are you? >> reporter: i'm doing well. in 20 minutes, the opening ceremony will begin. olympic sponsors where you are will be laying low, but here in china, it is a different story for the olympics in 2008, coke ran commercials like this. attaching the brand to china

this year? not so much. >> like most of the sponsors decided to be quiet about what they're doing in the united states and in europe >> reporter: beijing under fire for human rights and sponsors have come under pressure to distance from the games. inside china, the same issues are notcontroversial coca-cola are marketed heavily to attract consumers here, coca-cola released logo camps and set up stations at retailers like walmart the company has partnered for the event for local dairy firm and launched online campaigns like the interactive game. visa tied up with chinese banks releasing olympic credit cards png is focusing on athletes. some running demos and giving away smartphones and pins. some have special meals with limited edition bracelets and

mascot toys. >> we are in the transition period where companies for so long had been taught that they can expand business in china and expand business in the united states we are coming into the more of a zero-sum game. >> reporter: the marketing is going a long way over here we are speaking to people at the events andrew, a lot of people said they did appreciate that international brands were really supporting an event which they believe is important for china >> eunice, how much of the conversation that we're having here and around the world about this distinction with sponsorships is happening there? if you are in china, are you aware of the distinction >> reporter: not so much there are some people who will jump over the great wall online and use the vpn to read about some of the issues like the

human rights issues and the problems that a lot of investors and other regular citizens in the west have about hong kong. there are people who are aware of it. for the most part, it is not a big controversial sensitive issue here you know, when you talk to regular people, there isn't as much of awareness. if you speak to business people, there is a reassessment about what they need to do, especially if they are in the international realm. a lot of discussions of the business side and they have to hive off the china headquarters and localize more in the market. some people are talking about stepping away from the state players that could be problematic. especially with the scrutiny of the u.s. another thing that people are doing is reassessing personal relationships because of the

regulatory crackdown and anti-corruption campaigns. there is a sense of uncertainty. nobody know ws who will be aroud as a personal connection >> eunice yoon in beijing. 20 minutes until the opening it will be a fun one to watch. i appreciate it. look forward to talking to you more over the next couple weeks. i'll send it to the other side of the country which is the west coast where joe is hey. yeah yeah you got some weather issues back there, andrew. >> not yet it's apparently coming it's looking good right now. >> something wicked. something wicked this way comes. facebook did something yesterday no company has ever done in the history of the stock market. that story is next. later, geoff yang will join us in pebble beach to dig toin

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the company has ever done in the history of the stock market. not something they wanted to do. the company did lose $237 billion of market cap in a single day the previous record was a one-day drop in value for apple $182 billion in september of 2020 facebook shares closed lower by 26.4% yesterday after the company reported a sharper decline in profits and gloomy outlook for the quarter.

facebook set a record in july of 2018 on concerns of the outlook they were giving at that point the loss then was something closer to $123 billion >> the market cap -- the idea, could you ever really monetize the market cap of that market p even a little selling you see what happens, how low you have to go to get -- >> right it shows you the bigger they are the harder they fall >> we think of things being worth that much, but do we really believe that money went to money heaven? >> does the question is does it come back. >> we will see maybe it'll come back in the meta verse, guys if you're a facebook shareholder -- when we return we're going to talk a lot more tech. dan is going to join us to talk about the big moves in amazon this morning

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you're looking at both of these stocks they are moving a lot higher, of course they had been torched over the past two days in part because of facebook. so, you know, it's just maybe making up some lost ground to some degree. how do you think about it? >> i think you characterize it in two days. one, better than here in terms of the overall amazon number from an e. commerce perspective that was the showstopper here. i think that on some of the parts basis is really the key why amazon is going to be up here and in the advertising, but you look at snap that rely puts facebook even in a darker light relative to how they were able to navigate apple's ibfa and i think it just shows facebook continues to fall by the wayside. >> let's dig into that idea. what does this tell you then about facebook we talked whether facebook was an idiosyncratic problem

it now looks that way. is this something you think there's an opportunity to buy? cramer on wednesday was thinking maybe it's oversode. >> i disagree. i think to some extent coming after snap-in terms of what we're seeing across the board i think makes you feel more nervous about facebook from a gr growth perspective i mean, they could change their name every week if they want, but it comes down to digital advertising, and that something that continues to decline. look at snap's numbers i mean that was thought to be a potential disaster going in and it was the exact opposite. really puts a dark cloud over facebook in what was really a black eye quarter for the company. >> does it mean this whole apple ios issue was a red herring or not? >> i think this shows it's really cooke going after facebook and zuckerberg.

that's an important point here not fraud or protect really facebook specific. >> right i was very impressed with the amazon results, however, there are some who looked at it and said, look, they wrote up this rivian deal. that's what it is. how much do you look at the rivian piece, and as what we're looking at here on the screen? >> yeah, i think the street kind of strips that out i think the reason the stock was up obviously better than feared but it's really what you're seeing on the ews. similar to what we saw with microsoft, and that combined we believe could be worth $800 billion to a trillion alone that core cloud business. >> we've got to run. you think the new prime price at $139 -- talk about inflation -- you think that's going to stick? >> i think as you were talking earlier they could potentially up that to 200 given the

elasticity >> dan, always good to see you and get your perspective on all of it. snap ceo evan spiegel is going to be joining the game at tech check. that's at11:00 a.m. eastern time this morning. still ahead on squawk we've got a huge line-up coming to you from pebble beach including cbs chair, and then the at&t ceo and the discovery ceo. you don't want to miss any of it "squawk box" with two big urhos ahead plus the job numbers at 8:30 it's your future. so you don't lose sight of the big picture, even when you're focused on what's happening right now. and thinkorswim® is right there with you. to help you become a smarter investor. with an innovative trading platform full of customizable tools. dedicated trade desk pros and a passionate trader community sharing strategies right on the platform. because we take trading as seriously as you do. thinkorswim® by td ameritrade

hiking prime prices for the first time in years. plus snap surging on its results, but it certainly isn't monolithic a lot happening there going both ways a run-down of the big movers straight ahead and it's job friday. a preview what investors can expect when numbers are released in about 90 minutes. and a new warning from the fbi about possible hack attacks at the olympics in beijing details coming up. we're live from the at&t pro-am in pebble beach where the weather is hit-or-miss, but it's been unbelievable and expected to continue. the second hour of "squawk box" begins right now

good morning, everybody. welcome back to "squawk box" right here on cnbc i'm becky quick along with joe kernen we are live at the at&t pro-am in pebble beach this morning andrew is standing by at the nasdaq in times square keeping an eye what's happening on wall street, too. and we do have a great line-up of guests this friday. in this hour cnbc health chairman and at&t ceo david dorman will be talking covid testing and the efforts of the company over the last two years. what they're seeing right now. and then we'll talk tech, the state of silicon valley and much more with red point ventures and founding jeff yang and an interview you can't afford to miss at&t ceo john

stankey will join us along with discovery ceo david zaslav they'll both be joining us live. we'll talk about the company at&t's decision to split-off warner media and of course the big merger between the two plus all the big headlines this week. also talk about the economy, streaming and much more. in the meantime let's get you caught up on the markets on this jobs friday. if you're watching u.s. equity futures this morning there's been a lot of jumping around right now the dow futures are indicated down about 168 points. we've been down as much as 200 points in the last hour. s&p futures down by 6.5. and the nasdaq a big down day with the nasdaq down 3.7%. the nasdaq 100 off by 4.2% this morning the nasdaq indicated up by 63 points. >> it was up about 150 points when the show began. meantime i want to get over to dom chu looking at the premarket movers and there are a lot of

them, dom. >> you took the words out of my mouth. we were talking at 6:00 a.m. about the notion the nasdaq was outperforming a lot of it earnings driven. we've seen some of the steam come out amazon is up big in the markets, 90,000 shares of volume. e-commerce and cloud computing company reporting strong results, 40% growth in its amazon web services division, $12 billion investment gain and plans for a $20 price hike to prime membership it goes to $139. that's the first prime increase since 2018 amazon shares were down yesterday but up 10% right now snap gain there on over 2 million shares per volume so far in the premarket reporting top and bottom line results that also beat estimates. and user metrics up across the board. snap big down day yesterday and up 48% right now

then with pinterest, 12% gain right now, 100,000 shares of volume profits and sales topped estimates. monthly active users fell from the same time last year but average revenue per user was up 23%. big down day yesterday up 15% right now. and four shares lower by 6% on over 200,000 shares of volume. profits missed estimates revenues narrowly missed expectations and shares have been taking a breather after a big run up 64% driven in part by its electric vehicle plans and just to end things, andrew, a check on facebook parent meta platforms which we knew was down big yesterday. up frakzally right now 300,000 shares of volume, 26% drop injured which wiped out roughly 230 to $240 billion worth of value, the biggest single day market value drop in the history of the stock market. and just for perspective it's kind of like losing in the ballpark of a cisco systems or a

costco or adobe or pepsico just such a big miss >> hard to put in terms you can think about. thanks, dom. we're going to talk about what else is happening on top of earnings in the past 24 hours it is now jobs friday. and steve liesman joins us with a preview what investors can expect when numbers do hit at 8:30 eastern time. steve? >> good morning, andrew. an ugly jobs report expected with a real possibility of a negative number as the peak of the omicron wave coincided almost precisely with the survey week for this january jobs report the range of forecast stretches from minus 400,000 to plus 250,000. and when i read the reports of those forecasting negative numbers they warn there's down side risk even to the negative number they're printing. here's the reason. roughly a quarter of the 5 million inkreegs in those calling out sick in january are estimated not to have paid sick

leave. that equals 1.25 million people. so if they didn't work and didn't receive a paycheck they're going to count as not employed leaving tremendous scope for that negative print. here are the actual estimates which is 150,000 is what's looked for those on the positive side rely upon other things seasonal adjustment factors that could up for january. unemployment rate that's probably the number unchanged at 3.9% average hourly wage we have to take that can with a grain of salt because if you get rid some of the payroll workers that would flatter that number. high frequency data from the stock company ukg has also turned up. dave guiltbertson telling me every industry, every geography and every company size segment showed improvement mid-january

okay, the federal reserve will have another jobs report and several other job market indicators before that march meeting when it's expected to hike rates the bet on the street whatever this number, the fed is unlikely to be deterred and now back to the michael collins of the "squawk box" crew >> oh, goodness. steve, thank you for that. we're going to see you in just a little bit when the jobs number hits >> sure. >> big number. a small number in about an hour and a half over to joe in cali. >> can i be the phil collins i'm not really sure what -- >> i'll be judy. >> you can be judy coming up ceo health chairman david dorman going to discuss the state of covid testing in america and the efforts of cbs

and later we'll talk about the big tech movers in the state of silicon valley with redpoint ventures and founding partner geoff yang that's going to be interesting >> this is good timing >> before we head to break, though, let's get a check on the markets. futures are down at least for the s&p and the dow. nasdaq is up a ltlite. "squawk box" will be right back. this idea of making a movie about caring, it resonated with me. and not only caring, but how does that apply to someone from our community? it's about taking care of each other. she is an example of strength. ♪ ♪ new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get

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we are nearly two years into the pandemic and as of this past wednesday 250 million americans have received at least one dose of the covid vaccine of those fully vaccinated about 88 million or about 42% have received a booster dose as well. and the latest nbc news tally confirms there have been more than 76 million covid cases since the pandemic started with the government pushing at home tests, is this the best course of action given the confusion over false results for some perspective let's bring in dave dormen, the chairman of the board at cbs health and also

chairman and ceo of at&t thanks for being here. >> good to see you >> let's talk about testing because i thought we kind of got our arms around this and we were doing well with things until omicron hit the east coast and i will tell you just before christmas if you were trying to get a test anywhere, anyhow, it was nearly impossible. there was this huge surge we thought we wouldn't see again because of vaccinations, the government was given a lot of grief for the idea they do didn't do more to prepare. where do we stand on testing right now? what can we handle what can we not? >> first of all, the supply test is much better than it was they're available from different home kits. manufacturing is going up on that, and it's been ebbing and flowing based on demand. so i think the fact there were many more tests at home also attributable to the fact people would rather do that than go out and do it, and i think that's probably going to be the case going forward. people will keep a few test kits at home if they feel like

they're expressing symptoms, and frankly, that's the right course of action. if you feel sick, it's a good idea to get tested that way you're not going to expose other people. and it's just common sense >> yeah. there have been some questions raised about it because if you test at home the health department doesn't necessarily get the results so maybe we're not tracking the numbers quite as clearly but i will say given where things went down just in the last month or so in new york city you didn't have tests at home already, you were going to have a tough time getting this by the way, if you want to go find out and stand in a line like we were seeing at this point you might not have covid before you got in the line but you might by the time you got out of it. >> so interesting. we had 60 million vaccinations given, 30 million tests. so tests were lagging vaccinations because once people figured out i get the shot, i get the second shot, i get the booster that seems to protect me, and, you know, obviously we're talking percentages here

the highest percentage of people who have gotten three shots haven't gotten sick with covid even with breakthrough cases, minor symptoms you know, the testing piece is so critical to slowing down spread unnecessarily >> when does it become where the testing is -- is just not even worth -- and i'm starting and i'm not listening to joe rogan i'm seeing it on mainstream places now about things happening in the u.k., about where we are in terms if you add up vaccinated with people that have had omicron with people that have had delta and omicroomicron, you get up to a certain number, if you do the calculations on what the morbidity rate is now it's getting similar if not slightly above the flu when do you get to the point -- >> you answered your own question the whole thing of herd immunity

and endemic -- this has become endemic quickly. >> although scott says it doesn't until the hospitalization is strained. >> that is the single thing people worry most about being able to treat. joe, i think we're really close that people are going to realize, hey, this is not going to make me gravely ill, i'll weather it in a few days of course we've all heard people with breakthrough cases but we're talking tiny fractions and so i think we are, if we're not already -- >> everybody gets it who had three. if you're omicron, you get it but it's sniffles. >> if at all >> hopefully >> but we've got to be close and i think the government is being uber cautious about making policy statements about it because what happened with the last six policy statements they made, we can't outguess this thing. and of course there's always a chance there's some new variant. >> what did the vaccination program in this country mean

just in terms of new customer acquisition for you? because everybody went to a pharmacy, a drugstore, and you guys were getting a lot of those people coming in >> the numbers are stunning. you know, we have out of 21 million visits to stores a week even during the pandemic if you went there for testing or maybe you went there for the shots, 60 million vaccinations, you know most of those perform in the store in some cases kiosks, but everything virtual care visits, in-person primary care visits, you know, our business was shifting before the pandemic and began doing more services. and all the pandemic did was push it much faster. >> do those customers stick around do you retain them do they buy things at the front of the store, too? >> yes it's been an amazing year and we had to hire over 45,000 people just in the front store, but we also added doctors, nurses,

other kinds of practitioners testing here at the at&t i was talking with a crew earlier and we have two pharmacists, two pharmacy techs, a nurse-practitioner all from the general area here that are enjoying their time. >> you said at&t i heard you say that you're like a swiss army knife i can -- like you've got all these different attachments. you ran at&t i was just thinking i was there, i was a stockbroker and i remember 1984, and that was a really good buy. >> that was our orwellian year in the system. >> it was. but at that point if you bought before the seven baby bells and came out and you got the stub and everything else, all my clients were really happy. we've seen stuff with at&t that it's like -- what is at&t now? >> if you dothe short math on it, if you take tci, media one

which were purchased in mike armstrong's era and then we spun that off to comcast and time warner and direct tv i think it's $200 billion at&t spent on media businesses since -- what was that -- 1997 and because tom warner was such a huge deal in and of itself, it dwarves the past that was $3 billion armstrong spent. >> now back to the future. >> now we're back to the telephone business again >> mobile and 5g, and it takes money. did you expect this to happen? do you think it took too long? do you think it was flawed the strategy initially or was some of the stuff that happened did it -- i saw them take credit, see i was right. well, you said it was going to be so potent that it shouldn't

happen so what does that mean you were right you were not right >> i think the strategy really got injured by the length of time it took >> did it? >> and the justice department thing. what was there, if you remember t-mobile, at&t bid to buy it-mobile took a year. then t-mobile and sprint merged five years later and it didn't seem to hurt competition so those kind of policy incursions definitely interrupt business and i think at&t paid a $5 billion break up fee. so those things interrupted. >> now it's going to be -- and we're going to have david on lots of daves. daved zaslav what should media be now

just be streaming? what would you do? >> we're talking to various people across the industry the old line model of owning programming and providing it to packagers, you know, cable operators, satellite operators, you know, clearly is being -- is declining. streaming is what we hear all about, but how about streaming packages will there be we've got disney, obviously amazon prime you've got apple now, obviously hbo max. who have i left out? >> peacock >> oh, yeah, peacock so is it going to be a business of hits? and i think it's clear that's going to play a big role if you can't get your own content the past is really important. what are people doing? if we all get together for dinner and say what do netflix or hbo think

or go pay-per-view >> it gets expensive if you're doing all these services, too. >> we're going to have a super app like we do for financial, for entertainment. and that will allow you to buy on demand, you have your packages you choose, you have two or three streaming services but you carry around in your pocket and back to at&t i think 5g is such a game changer. we don't completely understand it yet, and i really get why john stankey is focused on it, but he also has fiber as a home. now we're getting a much closer footprint which you can do a lot more with, and i think that's where at&t is aiming is we're going to have both the high-speed pipes of the house and faster -- 14 years of yum. >> i was going to ask you about taco bell. i've got some swag cards for

chipotle >> i saw brian yesterday, the ceo, and i said you should know david gibes and tom nelson got a nice package of chipotle cards >> i go in there i order something supposed to be ready at 6:30, and it's ready at 8:30. >> back to the jobs figure -- that is back to the jobs picture and how hard it is to find people right now. >> we've raised our wage what we call the enterprise minimum to $15, which was a big move when you have 200,000 people in the front store, but the competition for jobs, you know, if you can go work at amazon for $18, i mean there's a reality that, you know, you've got to be competitive to keep people, and we really don't have a choice. as you know we've kept our stores open normal hours, but it is heroic on the part of our employees to be able to do it. the colleagues are taxed at this point. >> i mean, there's the inflation

picture and the supply chain picture. when you're talking about wages going higher like that, your input costs going up, do you raise prices and how do you make sure you keep things on the shelves how much more complicated is that >> it is product by-product, manufacturer by manufacturer we obviously have our store brands which are branded cvs if you go through a store now that's the number one thing i happen to notice is how many things may not be there. >> you walk in for 12 things and maybe you walk out with 8. >> so it's a chase i hate to use the supply chain thing, but people that we buy from are affected by supply upstream, and it is -- it's a challenge. >> what about -- >> swiss army knife. so you're a georgia guy. what's going to happen down there? kevin and perdue, what's going to happen? >> it's probably the worst situation you can have an

incumbent governor facing a very strong opponent in stacey abrams very capable, very smart, activated the voters in georgia. i think there's 7 or 8 million eligible voters, 5 million voted in the last election the numbers are so close perdue got 2.5 million votes, which is more than anybody has gotten in georgia in the history of the statewide race, democrat or republican. you know, that was only, what, last november -- november a year ago. so this governor's race will have a runoff only if someone else -- >> did you ever think georgia would be the center of the universe >> it's likely to be again because i think whatever happens in the governor's race will likely influence the senate race >> okay, so we've got to go now. so you gave me that -- >> i heard from --

>> spyglass, and we've talked about spyglass i want to say one more time. you know why you get a stroke on a hole at spyglass so someone like us can get a par, a net par. there's no way you're going to help your pro score. it's almost impossible >> the guys i play with here said, look, the combination of wind and pitch on these greens if you get them to a certain point, they do become really difficult. when you hear brent saying i putted three times yesterday >> even if you hit your perfect drive and then you hit a four iron one out of ten times perfectly then you're on one of those greens, and the chance of two putting you might -- >> you have a lot of wind. >> i've hit the high balls when i get done playing

i'll tell you that >> good luck today >> thank you this is always fun >> yes, it is. >> thanks a lot, david andrew, we'll send it back over to you when we come back the fbi warning olympic athletes and travelers of high risk in hacking, advising them to use burner phones and to watch for apps provided by the chinese government we've got details on that story. you don't want to miss it. straight ahead time now for today's aflac trivia question. who is the m.i.t. professor who created the worldwide web consortium in 1994 the answer when cnbc's "squawk box" continues

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now the answer to today's aflac trivia question, w who is the m.i.t. professor? the answer tim burners lee the computer scientist was also credited with cofounding the worldwide web in 1989.

is that right? i thought it was al gore >> no. tim burners-lee. i've spoken with him before, m.i.t. guy >> oil prices this morning that's one thing i did notice. >> is that 9 >> that's 92 we know the nasdaq i don't know where that ends up with things like facebook. but 92, is there any way it doesn't go to 100? >> it'd be tricky. that filters through this sector was written off for dead it's going to be interesting >> best performer this week,

best performer to date redpoint ventures founding partner geoff yang joins us to talk all things tech including amazon, facebook, spotify and more early investor in draft kings, too. you can do anything you want in california i mean it's insane what goes on in this state, but you can't do a $5 online bet. explain that, gavin newsom and later at&t ceo staun stankey and discovery ceo david zaslav plus we're counting down to the jobs report new out at 8:30 a.m. eastern time. here are the futures ahead of the data some weakness but also some strength in the nasdaq "squawk box" right back.

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welcome back to "squawk box. the olympics kicking off in beijing and the fbi now warning olympic athletes and travelers of a high risk of hacking. eamon javers joins us now with more on that story last time i went to china i ended upbringing a different phone and different computer, too. >> yeah, and that's the same advice the athletes are getting this year, too, andrew experts are bracing for what may

be the most hacked and spied upon games ever. you could call it the surveillance olympics. this week the fbi issued an alert warning everyone going to the oilympics to expect just about every kind of cyber attack now, the fbi is advising athletes to keep their personal cellphones at home and the fbi warns the bad guys could use cyber attacks to make money, sow confusion, increase their notoriety, discredit adversaries and advance ideological goals, but the chinese government itself is also expected to be one of the biggest surveillance actors during these games one veteran cia analyst tells me athletes should expect their rooms could be bugged, their political views will be scrutinized, and their movements may be tracked >> they've developed artificial intelligence capabilities, facial recognition software far and above what you find elsewhere in the world so this is actually not a big effort for them.

>> now, advice from experts is for olympians to assume that the chinese government is watching and because of that, they say you should do things like use a virtual private network, don't log onto social media while you're in china and don't enter any paswards such as for your bank account the chinese goal here is to avoid any conduct they see as embarrassing to the government so they're expected to be on high alert for political criticism particularly comments around activism of democracy, human rights or gender related issues, andrew back over to you >> here's my question. i remember getting similar advice the last time i was in china and i remember thinking to myself, okay, i get off the airplane, i turn on a phone. the second i turn on that phone is there a human being acknowledging there's a new phone connected to the network and then deciding there's an american journalist or there's an american athlete or whatever and all of a sudden trying to watch everything that goes on? how does this work at that level in terms of the scale of it?

>> well, the specifics of it are not really known to the west, but the general outlines are, which is that there are thousands of bureaucrats who are involved in this censorship and surveillance operation there's no question there are a lot of people in the chinese government involved in this. but it's likely that your first connection to a cell tower in china, all of that is probably automated, right and what the former cia analyst that we interviewed for the piece there told me is that the chinese are going to scrutinize everyone's political views they know based on your visa application exactly who's coming to kmiena and they're going to look at all your social media, your statements to see if you're the type of person who might say something about democracy while you're in china. that might be the group who have their hotel rooms bugged and that sort of thing what he said is all of that could be to gather intel and

dirt on those people the chinese government might use it to embarrass them if they think there's anademocracy activist there they might embarrass with some of their behavior at nighttime say in the olympic village >> fascinating story thank you for bringing it to us. meantime be sure to catch all the excitement despite all of that of the olympic games right on nbc and of course streaming on peacock and coming up, facebook, amazon, snap and pinterest are just some of the names tech investors are focused on this morning. we're going to speak to redpoint ventures founding partner geoff yang about those names and so much more. and then in the next hour two big interviews you cannot afford to miss at&t's john stankey and discovery's david zaslav including the ri of fffingje zucker it's all live from pebble beach. we're coming right back. look, as cfo it's my job to be ready for whatever's next. that's why i have my finance team,

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more tech. let's talk our next guest was an early investor in names like draft kings, sonos and stripe. he has his finger on the pulse of silicon valley and wall street joining us now is geoff yang, redpoint ventures founding partner. has everything been invented i guess we thought that in 1860. probably not a good idea to

close down the patent office back then. are you stillfinding things yo had no idea that were going to exist in the future and putting seed money in? you were so early on so many other things are you reaping the benefits of that and if you are still finding things the heck are? >> i've got to say i sure hope everything has not been invented and we live in an exciting time. i think there's so many opportunities. and basically what we look for is we look for markets that either have, you know, very large entrenched competitors with high profit margins or you look for things that have high inefficiencies that can be disrupted through technology and look at consumer behavior or corporate behavior and we live in a great time of change and with change comes a lot of opportunity. >> you're not going to tell me about -- you sounded like apple. apple hasn't had like a breakthrough huge product change in a while that's sort of what you're telling me now it's sort of all incremental

so you're not telling me what the next social media is going to be or the next -- >> i think we were living in a period where technology was impacting the way people live their lives and corporations do business, and all of a sudden the pandemic hits. and you get ten years of progress crammed, you know, into a couple years and all of a sudden these markets are accelerating with very loose monetary policy. and so capital is -- is almost free and that allows you to invest in very bold ideas. now we're entering into a period where capital may not be or is not going to be free, and the cost of capital is increasing and interest rates are going up, and people are getting more and more concerned not in just growth but also in profitability and profitable growth. and so that's going to make it bit more challenging and some of the boulder ideas may not get funded right now, but we've got a lot of innovation. it's probably okay to take a break. >> what happened with facebook

i mean it's not just a multiple compression with facebook. i don't know whether apple's involved there as well and there's some other -- >> i don't know. but my view is when you look at facebook, you know, fundamentally digital audiences are increasing and the need for people to sell products and services and address and target digital audiences is very high bet facebook faces a few challenges you know, you mention the apple ad changes that's definitely one of them. competition from tiktok for time and then kind of the changing platform for facebook moving away from just news feed into things like stories and reels and meta verse and stuff will take time, and they need time to kind of evolve the platform. and so as a result when you see slow downs, the street doesn't look like they like those kind of slow downs and i think that's -- >> customers that come in -- i don't need to say who it was or

what happened with it, but i thought that was very interesting. you've got this funnel and growth is great, but at the bottom there's all these people you thought you had that you don't have, and you don't retain it's happening with streaming and happening across the board >> that's true and people had been focused really just on growth. i think people now begin to focus on other ways -- the quality of growth and also the ability to monetize that growth profitability. >> and how expensive have the private markets gotten like far down how much more complicated has that gotten with the free money picture and what happens now i mean what we're seeing with the drops in tech prices that started at the beginning of january and continued all the way through, when and how does that ripple down to the private markets? >> private markets almost always follow public markets. what has happened is, you know, we've had these very robust,

very high valuations in the public market, and it's probably caused an even -- a much greater rise in the public markets public markets correct almost instantaneously and private markets tend to take a little while to change. and usually what happens is on the down side they take a little while to adjust, and on the up side they adjust almost instantaneously. so we haven't really seen it yet in the private market, but you start seeing at the later stage and it filters into the early stage. i'll tell you entrepreneurs probably haven't yet adjusted, and i don't know that we've been in this -- the private -- the public market correction kind of long enough to really kind of settle in. and, you know, i think there's a narrative that says, you know, people are really worried about stagflation. and, you know, certainly as the central banks kind of withdraw

monetary policy, and there's probably good reason to be concerned about inflation. and we could talk about what the roots of inflation are whether supply chain realignment or work force changes. but there is a narrative that says people are really ready to go back to their former lives. and as i talk to ceos from hospitality or travel or credit cards or what have you, they have a strong belief there's a pent-up demand people are going to come back if it comes back maybe the stag in stag flagds isn't as bad and maybe sure you get multiple compression, and i would expect to see that, but there's a lot more interest out of value and out of growth in some of the best names and then that will filter down and make it a recorrection in multiples. but i think there's a narrative that says we're going to be okay >> so what's a stronger force that we've paid for ten years of growth because of the pandemic

or that we reopened from the pandemic and we get a boost from that i would think there -- if it's ten years we've already gotten -- reaped the benefits, why wouldn't you wait ten years to buy some of these things? >> i mean, you're probably going to get a bit of both i would expect you get some good growth from reopening as people jump back in and the people that i've talked to suggest that by the end of 2020 they're going to make up whatever they lost in the beginning of 2020. and so i think what happens is people always look at what's happening now and they assume what's going to happen in the future i mean, the fact that a lot of the quote-unquote pandemic stocks did so well is they pulled all this demand forward but it's not going to -- the consumer behavior has changed, so whether it's -- whether it's how you work out and whether or not you always have to go to a gym, it isn't going to beyish or if it's videoconferencing and not being in person people always look at what that point

in time is now and assume that's the way it's always going to be. there is probably a more likely scenario where everything is hybrid you know, we've learned a lot about what we need to do and don't need to do during the pandemic, and i think you'll see it isn't like people are never going to go back to the office and never get back together in person, but it's also not going to be that people are never going to do meetings over video, right, or go to a gym or what have you it's -- it's probably kind of a more normalization >> do you ever do that will that ever replace -- can i quit all the clubs that -- >> no, you should definitely stay with all the clubs. >> yeah, go to the range can you see yourself in any way replacing anything you do now in a meta verse would that really happen with normal people? >> yeah, i think so. >> why would you do that why would you not go out in the

fresh air and play at one of the great courses around here versus sitting in your room and looking like an idiot with those, you know >> i think that entertainment is an ever changing concept and if it's really fun and it's a different kind of experience and i can do things in a way i can't otherwise, yeah, i'd definitely do that >> you must have some investments there because i know you'restill going out -- >> i am. >> -- next to the ocean here >> yeah, it's pretty good. >> do you do any of that stuff at home, though? >> you mean kind of virtual reality, augmented -- >> yeah. >> i don't do a lot of it. certainly my kids do more of it. i tried a lot of the early vr head sets and the way the frame rate goes, it gave me a little bit of motion, motion artifacts and motion sickness. i think with higher bandwidth

and better quality content, better quality head sets and higher bandwidth, i suspect it's going to get a lot better. and when things aren't this heavy giant headset, i think i would do it. you know, i was talking to somebody who is invested in a company with using virtual work out stuff, and they said they're doing great a they get a lot of engagement from people much faster than they would have expected i never really thought i would do something like that >> you need an avatar to do all those exercises. >> it's a way to engage you to do things -- not that you sit on the couch and -- >> feels like xbox, too. >> exactly >> and wiis. >> need to stick with the range and the putting green, too >> yeah. that would probably be a good thing for you. >> which way did the money go this time? >> nevermind i don't look at interim measures

of performance thank you very much. coming up, big interview with at&t ceo john stankey, discovery ceo david zaslav give us an update. we've got our work for us. "squawk box" will be right back. what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq

welcome back to "squawk box" this morning take a look at futures because things have been moving around all morning. the nasdaq up around 133 points. it comes down, come back the s&p 500 looking to open up about 11 points. all this may change this morning when we get the jobs numbers we've had these earnings reports. it's been just a seesaw all week, and i think everybody's trying to make sense of what's really happening here. >> yeah, that's right. i mean, we expect this jobs number to come in a bit light for january. it's interesting because investors we think are already looking past this particular report they don't think it's going to

be move for the federal reserve in terms of their plans and investors are already looking ahead to february where a bigger rebound is expected and better economic news. right now we think the unemployment rate is going to hold steady, more wage gains but people are looking for february >> the average number or expectation is 150,000 do people see even through that? >> well, look, i think the number one focus is on what the federal reserve is going to do they've beenramping up some pretty hawkish rhetoric over the past several weeks no secret about that i think if you did see a string of weak numbers over two months or more that might start to cause a little bit of a rethink. but right now the fed is already so hawkish that i think they're going to possibly dial back that rhetoric in the weeks to come.

if you did see more dovish numbers it would take more than one month, more than one data point to get them to change their thinking >> we'll all be watching at 8:30 as will jay powell thank you very, very much. appreciate it. becky? andrew, thank you. when we come back two big interviews at&t ceo john stankey and discovery ceo david zaslav both of them will be talking to us about their proposed merger, the state of media and so much more right after this. plus we're counting down to the data point of the month, the january jobs report set to be released we've got the numbers and reaction from our panel of experts. "squawk box" will be right back.

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good morning it is jobs friday in america and we're just half an hour away now for the number wall street is waiting for. economists expecting omicron would wreak havoc with that. but before that we've got a pair of interviews you cannot afford to miss. the ceos of at&t and discovery going to join us live from pebble beach talking a huge media merger the ouster of ceo boss jeff zucker and so much more. the final hour of "squawk box" begins right now.

good morning and welcome to "squawk box" here on cnbc. i'm joe kernen along with becky quick and we're live from the at&t pro-am at pebble beach. andrew holding down the fort back east. actually, and you're in the studio you're down at times square. that's awesome >> i'm sitting right here. >> you are u.s. equity futures at this hour are indicated mixed. we've got the dow is down a little, but the nasdaq has added to its gains treasury yields i saw earlier over 1.8% or so on the ten year. we probably should -- could look at oil once in a while, too. we're at 92, so it has been creeping steadily higher, and i don't know most people say 100 was in the cards, but we're not far away $8 away at this point.

>> inching closer all the time let's get right to our first big interview of this hour and talk about the news we heard earlier this week. at&t spinning off warner media in a $43 billion transaction to merge its media properties with discovery. at&t also is going to be cutting its dividend to $1.11 from $2.08. and joining us now to talk about this and much more is at&t ceo john stankey great to see you >> good to be here >> let's talk about this news because this is the first time we've gotten a chance to kind of go through this. you've decided to do a spin-off after a split after mulling it over what pushed you in that direction? >> we did more than mull it. we studied it and examined it a long time and very carefully and, you know, at the end of the day i think one of the things we concluded -- we started this transaction because we wanted to drive shareholder value. and we felt that given the equity structure and the way we did would have the best chance of making that happen. after we went through what would be required to go down the splits -- it had really

attractive aspects from my point of view which would be cutting down the share count, which is something over time obviously i'd like to do the cost of doing it would hav taken money out 06 certain shareholder pockets to execute it we have to accept the markets are smart. i think our shareholders are smart and give them the choice to do what they want to do and it's a very clean path to executing very quickly, which will allow us to complete the transaction in a really rapid period of time, which is good. so i think by and large our primary goal was to make sure we just let the market and the shareholder decide when they wanted the value and look, coming out of this they have a great opportunity. they're going to own two stocks, and i think both have great prospects. they're a little different characteristic as to growth on what they do, but the shareholder can make that decision and given the up side what i think is going to be an incredibly strong company, warner brothers discovery, and what david is going to do with that equity and watch it grow will be a good thing for those

shareholders that choose to stay in it. >> the market didn't give good reaction to the news it was a 5% drop in the shares on the day of the announcement is that because the difvidend ct from $1.11 >> we could only givea range i total pay out of what we were going to dedicate to the dividend so i think there was a bit of an adjustment around that although, my gosh, the yield is still a wonderful yield. it's one of the best in corporate america right now. >> 8.9% this morning >> yeah, so i think overtime as the fundamentals settle in we'll see it adjust. there's going to be vault tilt, people picking sides where they want to go we expect there'll be days we see a bit of movement. over time intrinsic value tends to be recognized by the market,

and i think there's a lot of intrinsic value. >> there were analysts that said they were glad you went further to give you more flexibility >> and pay down debt >> build out 5g, and they were glad there was that part of the range. they may not be retirees, but the people interested -- and there's people that -- some people don't even like dividend fang stocks where if you have something to do with that money -- >> that's exactly the issue, joe. we're sitting at this moment and i know jeff was talking about the future when you think about the future in what he's addressing our company is the fabric that a lot of that innovation runs on and we believe this is an opportunity for us to invest in a level and drive some improved returns. and i'd much ratherer be pouring some of that cash back into the infrastructure of this business

and returns at a higher level than what we pay at the dividend it's time to make some transition for this company, and we have got great opportunity and assets to drive that value >> does that mean you have to change the shareholder base, though, if there were a lot of retail investors counting on the dividends? >> look, i expect the shareholder base will change a bit over time, but i don't expect it's going to fundamentally change, as i just said i mean, we're sitting here at the top of the dividend paying pool so those that want to yield can still come here and look at it and say this is a good place to be if that's my motivation so i expect we're still going to have a dynamic of an income oriented investor and a retail basis it's going to be very, very important to us but i also think we can operate and execute this better and get more institutionales back into this stock, and we've got a great story and we're executing in a way that's going to make that happen. >> dorman said you're phone company. >> i won't describe it that way. we're going to be the best

broadband company in the united states and when i think about that our focus in doing that, we're demonstrating what that strong focus yields we came off a year where wireless business added more post net customers than in the previous decade. we've done a remarkable job launching a direct to consumer >> we are here at the at&t pebble beach pro-am, and all over the course there are big signs that say at&t 5g 5g has been something we've heard about for a long time. you all have poured billions of dollars in preparing for this, and just before launch time there were all these problems that popped up with the fa and the airlines saying this is going to cause a problem what the heck happened was the faa and the fcc not

talking? >> i think people were talking fine i believe there wasn't a lot of paying attention to the answers in some cases because probably almost two years ago the fcc told the faa we don't consider your concerns to be valid and you should go back and do the things you need to do to address them and when we -- when we get to these spectrum transitions and we displace somebody who's a current occupant in part of the spectrum band there's always dynamics that go on. the c band spectrum we're deploying right now required satellite operators to move satellite services out of the band, and they have to change out equipment, plan for that and the faa knew this transition has been going on for the better part of, you know, 18 plus months if you look at what's occurred in the last two months, which has been really constructive to work through this issue, there's no reason any of that couldn't have been going on a year and a half ago and i think maybe in some cases after answers were given there was a lack of urgency around

responding to the things that needed to be done to adjust to the fact there was going to be a new neighbor in this part of the spectrum band. >> a lack of urgency taken on by the faa -- >> industry in general to plan for these things and whenever you do this as you're seeing right now it's a combination of things. by the faa expressing what their concerns are we're doing things to adjust how we operate our networks and engineer and turn up radio levels. so we do things to respond to their concerns they need to do some things to look at equipment they may have out that needs to be replaced or updated. so those types of things can be planned for. i think we've got a lot of capabilities to make that done, and when people work collaboratively together which they're doing right now, you solve problems >> how many until it's all fixed? how long until it can be rolled out the way you hoped? >> i'm not an aeronautical

expert or engineer and they'll have at some point upgrade and change and that could be a longer cycle. in the meantime i think the mitigation factors we put in place will allow them to move in that period of time. i'm confident when ulook at what's happened over the last couple of months we're all turning up more cell sites we're able to move in closer to the airports because confidence level is now up there is no threat, as we said when we started this whole process so i think the general public is going to get the service they need to get and be able to fly safely as we said they could do. >> you've been at the company a long time and weren't necessarily making some of the primary decisions about moving into media and, you know, we also talked about how many things at&t has been over the years. it's really staggering depending on which ceo you're talking

about. ed witker, c michael armstrong i asked david were there regulatory delays that caused that strategy becoming more of a content producer, that caused that not to work out or was a flawed strategy? was it flawed from the beginning? did times change in terms of where the company was heading? how do you view it what really happened >> well, it's a fair question, joe. and i think we may even need a bit more time in a postmortem to reflect and fully understand but i would tell you this certainly i think we could be a year, maybe 18 months further along than the great success we've already had in taking the media asset and reposition it for the future and there's been some incredible work done. at the time of the close of that time warner transaction we basically had three separate companies operating under one corporate umbrella, and i'm really proud of the team, what

they've been able to do. jason has done a very nice job over the last year and a half, two years to bring those three companies together to operate as one and give that media asset a really bright future and i think david will probably spend a little bit of time talking about that and so as a result of that when i step back and think about where we are, sure, the delay created a problem because being another year down the road despite the great success and almost 74 million direct to consumer customers, you look at customer satisfaction and what we got out of this year and the positioning of what we've been able to do in the market, there's great momentum are i think about if we were 12 months back on that, there's probably a different mind-set and view on that however, the investor base has also said when you look at the investment characteristics and return characteristics of the two businesses, we'd actually prefer this to be a little -- >> were you personally were

there some nights you were like i need to do this? was it a tough decision to make? >> it was incredibly difficult >> and did you agonize over it for a while? how long did it take you i've known you as a good guy was it something you had to-- how long did it take was it a matter of weeks when you said, okay, i've got to do this >> no, it wasn't a matter of weeks. it was very carefully considered over a longer period of time and it is a very difficult decision look, it's a difficult decision to put shareholders through. it's a difficult decision personally when you think about relationships you have with folks. i'm incredibly proud of what the team has done. i would very much like to be around for the final chapters of that ride when i see them conkker the path they've setout for themselves on. i'm not going to have the luxury to do that, but david is going to be a great steward of that. it's not that easy but we're going to get to a good place >> the other big headline this week is jeff zucker stepping

down from the head of cnn because of an undisclosed relationship with a coworker there's been so much speculation about what happened, how the decision was made. was this something that jeff decided to do? was this something jason kelar decided? was it your decision he go >> look, jeff resigned. and as hard as the decisions we just talked about with joe are these are the hardest decisions. they're always difficult anytime you get involved in a personnel situation. and i know that jeff had a tremendous fall in with cnn and there's a lot of people who are incredibly loyal and supportive of him, and that makes it hard for those individuals. however, when i step back and think about what jeff's been able to accomplish over nine years you can't take that away from him he's been a very strong leader at cnn but there's a lot of people at cnn who made that success possible and i think even jeff himself talks about the fact that it's

the team that makes a difference there. we've been working really hard to reposition that asset just like we have the entertainment assets, and we're about ready to launch cnn plus. the team has been working really hard on this direct to consumer offer. it's about ready to come into market they've got a great product in store. i think it's going to start to drive some innovation. i think the best days of cnn are still in front of it i think david zaslav has ideas where he wants to take the asset and what he wants to do because of that. >> i'm sorry to interrupt, it almost reminds you of the cover up or the crime. because consensual relationships between adults should be fine. but there's a time when he could have disclosed it, and i guess that's what people are pointing to at the bylaws of the company made it mandatory you can't stay once that happens. and then i'm wondering i've seen some of the comments john malone has made about cnn, and i'm

wondering whether there's behind the scenes even other things in play for whether he was out anyway regardless of that? and this was a way to do it. i mean, just being really honest >> joe, i'm not going to speculate -- no, it's not going to -- look, i've always had a practice of not commenting on a personnel situation. >> i'll try, i guess i bet he's got a great answer already regardless who we ask the question it's a touchy subject. >> hey, john, we're running a banner here that says jeff zucker made the decision to resign based on what you just said however, jason kylar was recorded having a conversation with the staff at cnn in washington where it was clear that it was not jeff zucker's decision and in fact not only was it not his decision, when he was effectively pushed -- he apparently wanted to stay for

another week or two or threean was told he couldn't so can you just -- just try to square the reality of this he may technically have resigned insofar as he said i'll resign rather than you technically fire me, but clearly he was pushed to do this. can you just speak to that and also speak to the fact allison is still in her job and you think about the distinction between those two? >> andrew, again, first of all i wasn't involved in any discussions in washington, d.c., so i can't speak to what was said or what the characterization of it is because i'm not familiar with it jason, you know, certainly has his point of view or i'm sure had a conversation i'm not going to comment on the personnel issues allison, her circumstances are different. and i don't want to get involved in discussing her situation either >> john, i want to thank you for being with us today. obviously a lot of news to talk

about, and you still have quite a bit to do today. >> have a full day in front of us >> lucky i got up at 1:30 and got some really good tempo >> thanks, john. when we come back the government's january jobs report that is at the bottom of the hour plus much more from pebble beach and much more on the tom warner media discovery merger discovery ceo david zaslav is here and will be sitting down with us right now. stay tuned with "squawk box. and this is cnbc ♪♪ the chewy box comes today! calm down lenny. we just ordered it yesterday. (gasp) oven baked apple biscuits! hold me leroy! biscuits!! get fast free 1-3 day shipping when they just can't wait.

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i told you we will talk about it welcome back to "squawk box. live from pebble beach joining us now to talk more about the merger on at&t and warnermedia and discovery hopefully someone who knows more about it discovery ceo david zaslav >> hi, david >> you're not like the dog chasing the bus and catches it like oh, my god, i finally got it, what am i going to do? this is a big job you've got now, and it's a daunting future. and i'm glad it's you, not me, obviously. but media is difficult how are you -- where is media, and what are you going to do with this great new shiny object you have

>> well, first, it is a little bit surreal. this is a fantastic collection of assets. i've been at discovery for 16 years, and we've been -- we've gone from a u.s. cable business to a leader internationally. we added sports, and we've always owned our ip. to put that together now at a time of transition with the great assets that john and his team have at hbo really in a leadership position in terms of quality and content, warner brothers television over 400 shows, one of the biggest producers and makers of content in the world, warner brothers motion picture and cnn, you know, the greatest news gathering organization and news the really only powerful global news force in the world. putting that all together, it's really formidable. and it is exciting we've been spending a lot of time thinking about what could we be, but it's coming i think at really the right time because more and more when consumers are thinking about where they want

to go, they don't want to go to eight or nine different places and they're not going to pay for multiple, multiple different options. and we have, when this company comes together this is something john and i spent a lot of time talking about over the broadest menu of entertainment from kids to adults to teenagers, the greatest movie library, tv library, and we have more local content than anybody in the world, motion pictures so we have this great entertainment menu, which should keep people in the home from the kids to the grandparents why would they go anywhere else? and we're in the leader in news to the left, and we're now one of the leaders in sports >> definitely to the left. did you say to the left? man, you weren't kidding no, that was an aside. i probably shouldn't have said that i'm sorry. >> so it's at a time of disruption, owning more ip, more

diversity of ip and being able to get on a train that's already moving, almost like 74 million subscribers. we have over 20 million subscribers. we have very, very low churn we've been able to spend years trying to figure out what do people like, what do they want more of? and so together i think we're going to get on this train and we're going to take it for a ride >> as in the past, i really think this is transformative deal, obviously. but everyone else is in a position like with the changing landscape i don't know with streaming, how many is there going to be eventually, how much money are you going to make with that it's just does everyone else have to do something what's comcast have to do -- what does everyone else have to do in this world you're creating >> i'm focused on what i need to do but you mention two points

one is how are you going to make money? the difference between this company and the overall fundmentals we've seen we're going to be generating $8 billion or more in free cash flow and over $50 billion in revenue. that's a real company. so you see a lot of volatility in the market with, okay, we've got a lot of companies that are, hey, look what i have for the future warner brothers discovery has great fundamental economics. so we're going to be less than three times levered after 24 months, and here we are with $8 billion in free cash flow and growing. and on the right side of the company we've got hbo, hbo max we have all of our ip. we have all our sports, the leader of sports in europe there's a deal we announced yesterday with bt.

we're a leader in kids, we're a leader in news, and over time we have the money you know, one of the biggest challenges we're going to have is how do we deploy that free cash flow for growth we're not a company balanced on, hey, in a couple of years we're going to make some money and we're going to be okay no, we have that balance and i think more and more of the market is going to recognize and is starting to recognize, hey, this is a real company with real profits. >> you kind of opened the door to the cnn question because you have been quoted as saying how important it is to the company and you mention that again, and people have pointed out that, you know, with jeff gone -- jeff zucker gone, you've got to figure out a strategy there and how to move forward with that. and i know you're going to tell me you can't talk about it yet because you don't have the company yet and you're probably preclude from doing that

but can you talk in general terms whether or not that's an issue? since you say it's such an important part of the new company. >> sure. well, look, news -- and we've seen this throughout my 30 plus years in this business people get up in the morning and they want to know what's going on am i okay? what's going on in the world when i got to nbc in 1988, jack wellish and bob wright hired me to build a cable group we launched cnbc, we launched this service and then we launched with microsoft the first regional news network. and news is critical it's something we watch every day. and when you look at the churn on these subscription services one of the most powerful indicators is how often do they go there so, one, i believe news is going to be really critical and you can own it sports is more of a rental

business unless you want the league all the entertainment we have we own, news we own and we're the leader in news in poland so we're not new to this game. >> hey, david, it's andrew here back in new york because you're talking about news, but the question i was going to ask you is about the strategy if you can talk about the strategy of cnn plus, which was going to be a administrate subscription product, and whether that is going to be the case in the future or do you think that ultimately works better as part of this package bundle you're talking about. but i'm hoping you can speak directly, jeff was a good friend of yours for many years. i imagine he continues to be a good friend. was he a key man in your mind for this transaction >> hey, andrew i can't speak to -- we're two separate companies i haven't been involved in any of the decision making in fact, i haven't really gotten business news yet on a number of the businesses or really any of

the businesses and that's because of the legal process we have >> any conjecture john malone is behind the curtain in any of these -- john malone said it'd be good if cnn had some journalists that's where i'd start. i think of cnn in a totally different way than i thought about it years ago i do and john malone, when you hear him he's still a big part of your life, big part of discovery. if he says we need cnn -- >> but john is going to be -- a board member of this company and i am the operating -- >> he had nothing to do with -- >> none of us had anything to do with it. we're running our business to your point, andrew, about news, i and we as a company, we are a fighter for news we're the leader of news in poland for the past three or four years we're the only news source in poland we have a few thousand people

there on any given night at 6:30 40% of that population turns to us. we've been in hand to hand combat because the government has been trying to take us out trump helped us stay alive in poland and recently the biden administration we were fighting really for the people of poland to be able to provide a fair and balanced news service. so from my perspective news is going to be a critical element we happy to offer it in poland as part of our overall entertainment package, and it really works well. but we have offered sports and entertainment separately >> it's back it's in. got it so we'll have to see -- >> listen, we now have data popping up for the january employment report and much better than expected 467,000. 467,000, multiples of what we were expecting

and if we look at private payrolls, 444,000. manufacturing up 13,000. unemployment rate up to 4% so it did move up one tenth from 3.9 to 4%. month over month average hourly earnings a whopping 0.7. year over year, 5.7. big numbers. average workweek, 34.5 that drew down a bit that somewhat made sense and maybe the best news of all, the labor force participation rate, which has been stuck at 61.9 and remember it was well over 63 pre-covid. 62.2 it popped 0.3. and that is a nice pop in the underemployment and let's go over a couple of things here the household survey is where the unemployment rate comes from they do include people on unpaid

sick leave so how ironic that that actually moved up a tenth when we're worried about people in the business or establishment survey that are on on unpaid leave that aren't counted, but yet that number at 467,000 was quite strong and when we come to earnings up 0.7 of 1%. i think the high-water mark i think has been up 0.7 in april and equals that, but that's powerful on the 5.7, on the year over year, that's a post-covid high that is powerful number. remember that was 3% pre-covid 3% pre-covid look at what the market is doing. we're on a beeline towards 190 in tens. and consider this the dollar index just for the week is down 2% andrew and the gang, back to

you. >> thank you for that. and those job numbers so rudely interrupting us. we're going to go back to pebble beach in just a moment but in the meantime we want to bring in the jobs panel in for some reaction. kate moore is with us. jason foreman chairman of of course in harvard kennedy school professor. dana is here, adjunct professorinic economics at george washington university as well and neala richardson, dpd chief economist and a whole group here ceo hispanic business council and our own steve liesman. i want to go to steve first. i want to know what you think jay powell is thinking at this moment >> i think jay powell likes to see jobs i think it affirms for him his sense that the feds on the right track here i do want to go back, and

somebody correct me if i'm wrong here because i've never seen anythinglike this. but it looks like they revised up december. and i'd like people to go back and play the tape when i did not believe the december number. it's 510,000 now it was 199 >> that's correct. 709. yes, two month revision 709,000. >> it's just remarkable. i am not believing these -- i have not been believing these numbers to the low side, and i guess i've got to have a little bit of skepticism on the high side here. i don't know how it scratched out, how it worked out that it was quite so positive. i just think that bls does a poor job -- i'm sorry, guys. i like you i talk to you all the time on the first blush on these numbers. so i'm a touch skeptical here. the workweek did tick down, which is interesting

we know for a fact that the peak week of omicron cases at 869,000 was the same day at or same day after the survey week. so we think there's a lot of people out leisure and hospitality up 150,000. that's a place that should have been hit by omicron. i'm going to leave it there, andrew, and just say i have a bit of skepticism to the high side but i think ultimately it's good news and i think no matter what this number was, negative or positive the fed was going to be the postman and give pointed rounds in march >> we're going to go rapid fire here kate, your take? >> i think this incredibly strong payroll report may not be so well received by the equity market it's going to confirm for them that fed is going to be move more aggressively thanksgiving i think some of the more dovish equity folks were hoping for the two biggest parts here average hourly earnings, of course, as well as the tick up and those are both constructive

for the consumer, but i think we're going to be watching the impact on margins this labor market has >> jason, does this get you jazzed >> i mean, i thought i'd learn nothing from this report i learned that the u.s. economy is just in extraordinary shape in terms of where we are in jobs, the employment rate rose this was broad-based leisure and hospitality added 150,000 jobs in january as this virus was surging. the wage number, though, really underscore that. i think that's the biggest news out of this report up 0.7%. last year it was up about an average of 0.4% per month. we're seeing no sign of wages slowing down that's going to feed into service sector prices. we're going to see 2022 is going to be the year of services inflation replacing the year of goods inflation we had in 2021 the fed is going to be thinking

about 50 basis points. >> let me go to diana. is this a good news-bad news story? the markets you can see right now the dow selling off in large part because i imagine they think the fed is going to have to move even faster. >> right this certainly does give the green light for the six potential 25 basis point increases that chairman powell is thinking about. but when we look at these earnings numbers we have to remember that year over year inflation last month was 7%. we're going to get the next numbers next week. but these still are not real increases in earnings. we also have to think that how much better could this have been if we didn't have all these regulations preventing people from working, shutting down the energy sector, telling people they had to go home if they had the mildest signs of omicron we see these truck drivers in canada who are protesting the vaccine mandate. so these are good numbers, but i

think they could have been even better if we were not discouraging people from working in so many sectors >> what do you think >> andrew -- >> it's steve. >> very quickly. the probability of that 50 basis point rate hike it shot up to 33% for a bit there. it had been in the low 20s, so a bit of a bet i think it's unlikely but i'm not going to argue with jason because there's not a lot of time but it is up -- >> steve, i think it's unlikely, too. i thinkit's less unlikely than it was an hour ago >> it raises the probability, you and i can agree. >> i think this is unequivocally good news the report but it's also a bit mystifying i celebrate the increase in the labor course participation rate, but to think that that happened during a time of surging covid cases is something that makes me a little skeptical of these numbers. i think this is one of the

reports we really need some -- you know, some other evidence and agreement. but what we know going into the report is that job listings were strong we were seeing hiring was strong, and then to circle back on jason's point on wages we did see some strong wage growth in the fourth quarter of last year particularly from younger workers. but we also saw some wage growth in office jobs, you know, information, professional business services. so this is not just a leisure and hospitality story. we're seeing wage growth across the board. and that is the number to watch along with whether this labor force participation rate really has legs >> but it's not real wage growth it's job wage growth we're talking about. >> jason, is it possible the participation increase is due to bench marking, that they have different bases here they rebench marked the survey here, or am i missing something? >> look, if you look at the level the revised population

control is negative whereas the headline one is positive so if you take that into account it changes the level usually it doesn't change the rate very much, and so when we're looking at that rate going up we tend to believe that even with the population control, but that's a large discrepancy there in the level, so we'll need to dig into that a bit more >> final word to javier, what do you think? >> there are some sectors that are seeing wage growth top inflation so that's what we have to keep in mind this has been an uneven recovery, and there are some sectors that are really accelerating through it. and those also that are being left behind. those are usually the more low paying sectors >> fair enough i've got to leave a final word to javier. >> you know, based on the conversations we were having, we were set to say a jobs number between 250,000 to 300,000 so to hear north of 450,000, we're delighted, obviously look, i represent the people on the front lines of the crisis

there. they're the small and medium sized businesses that are driving this job growth nationwide and they're still telling me sure we can celebrate, but we need to stay focused we need to continue to try to stabilize the economy. we need a stable political environment. we need to manage inflation and we need a healthy and prepared work force that's ready to continue to hit it along with us you do that and you'll get a small business community that will continue to grow, continue to create jobs and continue to drive the american economy we're delighted with the news. >> ware going to leave the conversation there i want to thank everybody for joining aon our jobs panel right now we want to get back to our interview with david zaslav at pebble beach, discovery ceo david, where we left off -- and my phone has been blowing up actually during this period from folks, frankly, at cnn who are desperate to know just your personal views about geoffrey given your friendship with him,

given their affection with him and the future of what ceo plus looks like i know these aren't things of what the future is going to hold and you may not be involved in it today, but i think people want to understand strategicall how you're thinking about cnn or cnn plus >> look, jeff is a good friend of mine. i can't speak to this issue. we don't own the company yet we're not involved in any of that in terms of cnn plus we couldn't be more excited about the fact that they've been hiring great journalists. cnn has the greatest group of journalists in the world it's the only global gathering news organization in the world we're already in the news business we believe in it it's a huge differentiator, and something for the long-term is going to be a fantastic asset for us i haven't gotten a business

review what cnn plus is going to be and how it's going to be offered. i'm looking forward to it, and i think directionally it's absolutely what we need to do. the objective is that cnn would be seen everywhere in the world on every device, and people would get up in the morning and they'll turn to us for what's going on in their country and what's going on around the world. that's powerful. that's differentiating versus a netflix or a disney, and it's core to who i am this is what i was doing when i went to nbc. and it's why news 12 long island and all these regional networks grew because people get up and they want to know what's going on in their community, in their country, in politics so cnn is a fantastic asset. i can't wait to get in there we have huge ambitions for it. the leadership team there has great ambitions for it, and it's going to be extremely exciting and it creates a company -- news, entertainment and sports

and as i said earlier this is real company, $8 billion in free cash flow and $14 billion, and over $15 billion in revenue. a real company that makes real revenue that's building for the future >> david, there was a great vanity fair article that chronicled kind of a listening tour you've been on for the last nine months talking to people all over the place this is company that's kind of been in turmoil, gone through different ownerships for the last several years, and i think people were hoping they'd be hearing what they heard from you, that you're interested in story telling, you want to see how this goes. you've been doing all this listening. what do you kind of tell people back after all these things? what's the next step >> first, we're all in turmoil it's changing the way people consume content, where they consume content. hbo, warner brothers, warner brothers television, all of our assets, it starts and end with

great -- with great story telling, with great talent, with great writers, with great producers. we've seen that. that's how we've grown around the world. john has built an extraordinary company of great talent. i have spent a lot of time because a lot of this is new to me and i'm trying to learn as much as i can from the people that were successful i'm learning a lot about what worked in the past we're together us at warner brothers television to figure out how to make this work in a new world where people are going to be viewing content and sports, entertainment, news on every device i'm super excited. i was so happy to see john we played golf together with joey on wednesday. he's a great guy, great leader and i believe strongly wae're going to be looking at each other and in a few years warner brothers is going to be the greatest entertainment company in the world and john is going to be running the number one

telecom company in the world >> a gaming company, i don't know, are you looking beyond where you are right now? >> well, warner is in gaming they have a very profitable gaming business. it's a very well-positioned company. gaming reaches a great demographic. it's a great menu of ip, and they own all of it we're just getting started >> yesterday the deal on bt with sports also a huge part of that, too. >> that's our dna. we're already the leader in sports in europe u.k. is a really important market to us we just structured a deal yesterday with bt where we pick up the champions league, premiere league, rugby together with our euro sport and our sports assets, and we did it with very little down side and no cash. because we're a strong sports operator in the u.k., we put it together with bt sports rides,ee

run it and we're in a position now we're a leader in sports in the u.k. and positions us in the entertainment market in a few years from now we're formidable now and we're going to be really formidable in the future and that's our recipe is news, sports, entertainment, the full menu >> thanks for hanging around and staying after what was a pretty big i don't know jobs report and that's something that -- >> it's great. >> it is good. i guess the fed -- we'll get to cramer our buddy who goes back with you as well jim cramer joins us now. initially the market got a little weaker. the fed has some leeway i think to do what they've got to do with an economy this strong. >> it is incredible.

we are in the maximum good news is like ultra bad news, interest rates go much higher anyone who thought the fed was only going to do five, now we've got to put six on the table. it's a very, very strong number and there's no two ways about it i am fascinated about the interviews you guys are doing today. it is incredible say hi to david. i'd bank with david baz i think his ability to be able to pull this off is unique because he pretty much knows his way around i feel very strongly he can pull this off >> but, dan, i wonder -- my very first question, jim, was when something like this happens everybody else sort of looks around and i think we're in one of those periods again everybody -- it's never where you're just happy with what you have it's moving so quickly right now. and there are some down sides to some of this stuff, retaining people, too many streaming

services, making money, all these issues that i don't know how all these other companies -- it's going to be interesting to watch. >> other than the nfl, everything is so fractured the nfl obviously not fractured. i've got to tell you, joe, when i go back over to meta or facebook, i really keep coming back to the same issue which is that there's just too many things and it happened rather suddenly. everybody kind of came pretty good because of covid but we just don't have the time we can't watch jeopardy and the olympics and watch david and watch news and be interested and not just be overwhelmed and say, you know what i'm not watching anything >> well, i got the wordle in too today. >> you did i'm going to get it in one

>> david, no wordle? >> he's gone now >> he's already running. he's trying to figure out what to do with the news division >> i know. wow, what a week what a and they want to go activism with microsoft who cares >> yeah. i mean, national emergency there. a lot of tiktok i think it's tiktok has become a theme session of everybody who every kid in the world it's very powerful. >> yeah. there's too much to do. >> jim, would you go to china

and tweet? i wouldn't i tonight think tild go anywhere near there and tweet. >> totalitarian country. i think i want to lay low. you want your -- send your digital twin there. >> right. >> a decoy. >> get a digital twin. go over to china and have a good time. >> wow. >> we'll do sand boarding. >> faber that is too much man candy two of those oh, my god >> yeah pel we'll go over there. it's not us. it's our digital twin and we'll pay mark zuckerberg so we don't have to go but our dij typical twins are on the line. there's the world coming our digital twins. >> dress nicely. >> do they count the nielsens the digital twin if they watch and we don't that's a good idea. >> four eyes is better than two.

>> right. >> four eyes [ laughter ] all right. we have to go. thanks, jimmy. we'll see you at 9:00. oh, wow! look at that. >> that's a good combo, faber! that's a good combo. >> eggplant? >> he said he matched your hair. >> it did. it did and sar are a may ckli will help us make sense of a head-spinning week on wall street when we return. i feel like they might have a better finance system than we do. workday. how do they make better decisions faster? workday. it's got to be something workday. i think i got something. work... hey, rob, you're on mute. hello! hey, rob, there he is. workday. the finance, hr and planning system for a changing world.

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12k3w4r6r7b8g9s jobs report showing a gain of 467,000 positions last month it's well above expectations good news/bad news situation joining us now to talk market impact and the violent moves is za sa sa sa saira malik. the fed will have to raise and move fast ensure. >> yeah. the strong jobs number raises the risk the fed becomes more hawkish. there's three things we're watching yields, earnings with ab and what is the fed going to do? from a yield point of view they moved too far too fast it likely doesn't continue to agree. we see them drifting moderately

higher this year looking a the fed, part of the resanction, they pivoted to a hawkish stance last year if you step back bigger picture in the early cycle of rate hikes with, that tends to be bullish for equities because you have the earnings and economics growth that'll overshadow the rate hikes and looking at earnings, the key to focus on is who is going to be earnings this year that's going to be driven by pricing power. you need to find those companies that can raise prices and beat the higher inflation trends. we're seeing that in the fourth quarter. we're seeing about 4% earnings surprises. less that have is coming from margins. more that have is coming from revenues and pricing we can't rely on margins going forward because of cost pressures. look for pricing power great example of that today. amazon which raised the prime prices. >> that's what i was going to ask you. because this week it's funny we sort of stopped focussing on the fed this week on the assumption we're starting to look at earnings then we went on the

rollercoaster ride because you had facebook on wednesday that just took everything down with it then, of course, we had amazon on the otherend of it. so when is it? which is it? >> looking at winners and losers in megacap technologies. it's not the death of technology, even though some of these are head winds to them looking at facebook. social media is becoming more competitive. we saw alphabet talk about that this week with youtube the companies that dominate their spaces like amazon putting up their strong numbers, alphabet with their strong advertising spend and market revenues and market share gains. these companies that dominate with the strurl growth trends can continue to maintain the multiples going forward. it has to do who can beat earnings facebook will probably have more issues going forward because of the targeted advertising businesses, competition from tiktok going forward if you can't put up the earnings this year, it's going to be hard for stocks >> right

part of the issue has been effectively rerating in terms of what the multiples being applied to big tech and whether you think they hold up or they actually continue the downward slide given what you think is happening with the federal reserve and now the impact of the jobs report. >> yeah. i mean, the overhang is head wind for evaluations for tech overall. those companies look at front office software that are tied to client revenues. you have to tie yourself to pricing of revenues for your clients and own business the companies should be able to maintain their ratings amazon is interesting, though, how much it's up in the aftermarket. it's barely retracing what it lost today it has a good valuation in terms of the ability to expand going forward. continue to be more selective, it's about winners and losers in technology not like the past we've seen where all rise in the megacap space. >> and quick, 30 seconds, outside of bid tech. where are the winners? if you were having a conversation at the end of the year what would it look like?

>> i think energy is going to be a big winner this has the sweet spot of tight supply and demand and producer discipline they're focussing on returning cash to shareholders rather than growing new barrels of oil that's the winner for the year. >> saira, great to see you appreciate your perspective on it in the meantime, i want to get some final comments and thoughts it's now close to 6:00 a.m. on the west coast becky and joe, what are you thinking great interviews this morning. >> glad it's friday! >> yeah. yeah glad we're done. questions need to be asked but we're done, andrew we did it. >> see you monday. >> we'll see you monday! >> and, joe, can you give us an update how you're doing on the course at all? >> i'm glad spy glass is out of the way, andrew. the number began with the 6. i did get a few 6s but the

overall number for the team began with a 6 at spy glass -- it's only one below 69 it's okay. it's not great. >> okay. >> spy glass is out of the way. >>well, enjoy yourself have a great weekend, everybody! squawk on the street begins next "squawk on the street. good friday morning. welcome to "squawk on the street." i'll krcarl quintanilla with dai faber and jim cramer adding 460,000 in january with huge upwards revisions yields are surging 10-year 190 is a two-year high as the market is pricing in bigger odds of a 50-basis point hike our road map begins with the jobs number and surprise upside. payrolls jumping, unemployment ticks up to 4% talking tech turn around