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 shares of amazon, snap, and

pinterest are moving sharply higher before the bell and billions lost, if you want to count them about 232 billion in value wiped out at meta that was yesterday, carl. >> that was yesterday. so was amazon and snap rebounding after the tick sell-off market will have to balance the whip saw moves along with the macro today. >> we have to talk about how this age lot of people are saying, look, get me out it's too fast. i think it's swinging because there, frankly, is not enough move involved in the speed of the machines we have to talk about the speed of the machines. so fast you have the situationings like right now you look at meta, facebook, there are sellers willing to sell below where there are buyers now this used to be called a fast market, david remember when you have a giant desk where a portfolio and the

trader said look i have a million meta platforms and where can we sell? it's 233 he said, okay, take a 220. and then the trader said what are you -- what are you talking about? you're going to destroy the stocks i don't care. >> get me out. >> right it's the get me out a lot of people are confused by in the same way amazon let me cover my short or get in what price are they saying if you want to buy amazon i don't care amazon is a winner i mean, yesterday, though, you had a lot of people doubting whether that amazon number would be strong enough to sustain the stocks, certainly. and then snap was -- >> snap is different. >> the tale of two cities. >> right i don't think i've seen it down 20 in the day and up 50. >> fear factor is incredible if you look at amazon and be clinical, amazon is not what we thought it was, right. amazon web services it became

valueless there. tableau is caught by salesforce. he comes back. it's up 40% 17.7 billion advertising was a little light on 33%. >> yes. >> it doesn't matter what it is says is we're not at base we're transaction-based. alphabet is transaction-based. facebook ad-based what is the facebook value proposition to advertisers we can tell you exactly how many people bought things from the ad we can't anymore most people opted out. look, is it extensionble for facebook that is. >> do you understand the difference between why snap, which many expected would suffer similarly to apple's result of the privacy changes did not. >> right. >> meta seems to be alone, in a sense. because also pinterest we saw twitter shares down

again the concern about this may have been overblown. >> of the industry >> from the out of the meta numbers. clearly it was. >> look, i think snap is a different. facebook is now old. stain is middle. right. and then tiktok and snap are relatively the same in terms of the younger people. >> also snap didn't lose users to tiktok at all. >> right. >> it's the demographic. >> zuckerberg was calling out tiktok many thought it was regulatory -- >> tiktok is going to be the biggest in the world. >> all right i know all of which i'm trying -- >> i'm just -- >> trying to understand what happened to meta that others aren't suffering from? >> i think meta uniquely had a good ad business that is just not as good in the new world where we opt-out where it's easy to opt-out the value proposition that we all thought was there is now totally worthless.

look it's $10 billion. they have a secret weapon and it's the ceo who has been battled before even after all the stock they bought, they still have another $40 billion hanging out. they can go just -- >> yep. >> i mean, these are not financially challenged companies that are intelligently challenged that's a big difference. >> it wasremarkable to listen to the different ways that zuckerberg and spiegel talked about ios, snap, more encouraged about their progress on that front. also, about tiktok take a listen. >> >> well, we certainly compete with tiktok and instagram and youtube, you know, for video entertainment. we also have different areas of our service like our map our ar platform, you know, where we see strong engagement. and i think, you know, as it pertains to stories in particular and growth in video,

i talked a little bit on following on some of our prior earnings calls about the transtrends we're seeing throughout the pandemic. we're seeing people post viewer stories from their friends, view viewer stories from their friends. we see folks watching more premium content and more content in spotlight there's a bit of a mixed shift there. >> meanwhile, the discussion, jim, of when a name this large is down 24 during the day, up 50 after hours, is it a symptom of really challenged liquidity overall? >> very much so. i think that we are now -- there's going to be two -- look. there are many people i talk to say, jim, liquidities being sucked 0u6789 of the market by the fed. i think that people present the fed as being this incredibly all-powerful machine but then i look at the employment number today. i say, with el with, the people thinking the fed is pulling back the liquidity got even more

amped up i'm looking and saying, well, know from j.j. -- from them they're pulling out. they're pulling out. and, you know, are they pulling out because they have driven meta or needed the money i think the labor department would say the people need the money. they're going back to work participation. i don't know i mean, i think -- >> so the stay at home, trade everything is done >> it's done. >> good. >> remember -- >> good riddance to it all please come back to the office >> yeah. we're getting back to a world where it's an epidemic we never had a pandemic before so it's hard to see how it ends but it's epidemic. epidemic you go back to work except if you're in china. domestic travel according toest they lauder is struggling. >> can we come back to amazon for a moment

>> yeah. the numbers are so staggering, too, when you think about it what are we talking? how many employees now 1.6 million employees. >> they've hired more people -- >> they actually couldn't hire enough they tried to hire 150,000 they were only able to hire 140,000. close to our discussion. >> yeah. you mentioned that >> the labor force there's a look at the key numbers. we talked so often amazon web services, as we should it's the company. >> right. >> we're tail business is losing money, or did this quarter $60 billion! $60 billion in cap x in 2021 $24 billion toward i.t. infrastructure that would be data centers that's related to aws, certainly. 30% or $18 billion spent on warehouses and things that have nature fc is, you know, fulfillment centers. 25% $15 billion spent on transportation. >> by the way -- >> an awful lot of delivery trucks. >> $16 million is more than

exxon. it won't add up to amazon's cap x. >> there was a moment in the call where brian -- the cfo, he said is there anything like going wrong or, like, going wrong? he said the move has been $4 billion on omicron i mean, the guys they may argue they are exercising a level of humility i'm not saying jeff bezos is necessarily elon musk but the new team is so nose to the g grindstone the call last night -- i mean, you leave all the calls and it was like we had the best quarter. they were, you know, we did this we raised prime prices going to raise them to $139. someone said you broke out ad. >> yes. >> for the first time. >> yeah. >>st it the most laconic, straight-to-the-point cfo other than the man who decided to get

the hertz job. >> yeah. we'll talk about that later. amazon web services $170 billion. >> right. >> a top-line growth -- what was that >> 30%. >> this was an operating quarter. >> it wasn't just the number on the margin at 29.80. it was the acceleration. >> yeah. >> so i think are about to understand it would not shock me if the stock is up even more because this was not as good as alphabet because, remember, there wasn't -- they did have a top line mix. >> they did. >> yeah. a top line miss. >> they did. >> you see the businesses that going have unbelievable margins and are accelerating it's accelerating. >> you wonder what it would look like separated out. >> right. >> say again >> ftc >> no. i mean, shareholders saying why not separate them.

aws has to be worth a trillion on its own that kind of margin is 40% top line growth. what kind of multiple do you put on that business >> amazon web services maybe it's what we know from azure you know, google cloud these are unbelievable businesses they're nowhere near -- >> is there any synergy between web services and retail. >> i mean -- >> there isn't >> no. they use the cloud. >> so does everybody else. they'll let anyone in the cloud. >> right there's no service. >> in that sense with there isn't. in the format in the same way red agnostic only walmart is like i don't want to compete. >> amazon's retail is a customer of amazon web services. >> yeah. i'm working on a thesis we shouldn't be measuring supply problems or whatever is there a demand?

is there a demand? and the fact is, they raised the price of prime because of their level of belief in demand. costco, the demand is there. est they lauder the demand is there. clorox no demand. that's why the stock is down. >> it's less than what i'm paying for netflix a year. and getting free delivery. >> the demand is there this is going to end up being the quarter and if -- the company doesn't have demand, then you're going to get this kind of outsized moves one thing that is saving anything high multiple service now. that was good. then that's it the only classic raises that people adopted were those. that's it. >> unity is going to open up. >> i know.

that's cathie wood i recommended the stock the other night. i immediately went down big and said it's too far. because unity is an amazing company. unity, by the way, i think what zuckerberg has to do is call over the ceo of unity and say, look, i need this far faster i need to have a transactional model here that is not what my current model is only john has the software i mean, i've seen the unity software the unity software is the best. >> what does it do well, okay let's say you want to develop a gaming business involving fantasy. >> okay. >> they have the ability to be able to make it so you have a zoom party and every one of your fantasy players, you can isolate. he has that. he has that now. right now. you watch your fand si and you play against somebody else you have a camera. you have a camera trained on

your players not on what cbsments no it's true. >> absolutely. >> they have the ability in the software to do this. >> i have no idea what you're talking about. >> that's what unity software does >> no. i'm using that as an example. >> okay. >> i'm just saying the fungibility of what they have. any gambling, any kids game. >> who are their customers >> anybody trying to make 3-d. [ laughter ] >> okay. >> but why didn't they like my idea that's my fantasy. if i had a camera on one of my fantasy guys, that's like red zone heaven! [ laughter ] >> david, i would pay a fortune for that, that's what i'm saying demand for virtual reality is virtual reality. >> so are we. >> what? >> our digital twins. >> digital twins. >> the metaverse. >> there we are! friday in the metaverse!

>> and tie >> i have a red tie. that's good. no pony tail and i don't know what -- i mean, if there's any, you know -- >> you don't have a shell on your head this time. >> no. david, you and i look shell shocked. >> a lot of unusual activity. >> yeah. >> we have no idea what is going on in the metaverse, carl. none. >> can my eyes move? >> you don't move at all. >> adobe could make me move. i'm telling you, jenson, i look more likeme! that was scary when i was looking at me i said that looks more like me than me! [ laughter ] >> what? that's what i thought! >> more like you than you. >> i didn't know if it was a mirror or digital twin until it started talking to me and recommending stocks and making so much more sense. >> when we come back -- >> you're active. >> we'll dive into ford. fourth quarter miss is weighing on the stock what jim fairly is saying about the growth we'll get to rejen ron and more. and the jobs number, if you missed it.

plus 467,000 we'll be right back. ♪♪ what do we want delivered every month? clumping litter? salmon pate?

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change we had a clear plan, action, and whatever-it-takes mind set we're confident our strong-base business will generate the capital we need to fund an exciting future. >> the guide for the year is not that far off >> no. >> why the punishment today? >> i mean, the stock ran tremendously i think that we were all kind of surprised there were so many different markets that ran strong but the -- when i go back over them, again, always thinking about this demand versus supply. the demand far exceeded the supply for pretty much every product. you talk about once you going to it you'll see $1,000 i know from dealing with them regularly, they simply could not produce anywhere near the demand they were hurt by chips. i wish i had known more they were going to be hurt by chips i know they could have had a better quarter if they could just produce the cars. >> wow. >> i'm judging things by demand

versus supply. if i felt they had cars, david, they couldn't sell, i would say sell it's not like them they couldn't meet the demand. >> you know we don't want to overlook the big picture, which, of course is this incredible transformation taking place worldwide in the auto making industry. >> right. >> they're talking about now having ev capacity for 600,000 vehicles a year by 2023. that's next year. >> no, that's, you know, that's the most aggressive. that's more aggressive than gm and 400,000 within the next two years. >> right and basically have to have two companies. >> yeah. and, obviously, tesla is far ahead. >> a kbugs engine company. >> yeah. and the ev my worry even though they have a good balance sheet is can you pull it off? are all those internal combustion people, is it a cash

cow? are you going burn a lot of money? >> we'll have millions of electric vehicles sold worldwide in a few years millions. >> it's going to be interesting because i think parts of the country aren't going to care that retail is at a seven-year high. >> great point now we look at a clorox, which had huge issues with energy. air products issues with energy. these are in the cross hairs of the rising price yes, the consumer at a certain point saying if you give the bonuses. remember president biden will not help the tesla buyer we're trying to figure out how much money the government is going to write to you, if you buy. >> yeah. >> an american-made union. union! >> ring the bell. >> literally what it said. >> yeah. >> it's like bring back some of the -- i mean, this country we don't -- i mean, i think the president is so much more easy

to talk to shop with more than any ceo. >> elon would probably go with that. >> yeah. >> we'll get cramer's mood dash as we come back from break this morning. keep an eye on futures we'll talk about the calculus in the wakef e bs othjo number. more "squawk on the street" in a moment competition beat us again. how? they have a better finance system than we do. 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. (vo)e finance, hr and planning this year, t-mobile for business

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investing approach can help. t. rowe price. invest with confidence. take a look at the 12-hour chart of dow futures you can see about 8:30 there where the jobs number came in hot. 467,000. and fed fund futures began to price in at 34% chance of a 50-basis point hike. we're going see how that weighs on equities today when the opening bell rings in five and a

half minutes

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we're going to do a mad dash we issue talking about changing it up. i don't know what we're doing. >> you know how hard the market is the drug stocks are dipping there. >> yeah. and used to trade together we thought that once the medicare negotiating with drugs went away, we would be on a clear path to buy these. what happens you have a case like a bristol meyers. and announces $15 billion share purchase we like that very much, right. it has -- it beats the number of $1.83. it beats by 4 cents. it has one drug doing incredibly well david, nobody really cares. >> why not >> because there's nothing here that is -- >> what about their oncologist fran dhiez >> they talk about that as being strong but they don't sing typical out as being, you know, keytruda wasn't that way. we have a situation where it's like, okay, i don't know

that doesn't intrigue me you go to united health and you're intrigued. >> all right. >> those aren't pharmaceutical companies. those are insurers. >> i'm saying i want them to understand people talk about hc. i'm underweight hc. >> health care. >> it means they're selling. health care. and the group bit is underway to destruct and people don't know what to do they don't know what to do there are so many people brice tal meyers with the buy back and you would think the stock up people are selling and saying, you know, if the fed is tightening and we have this kind of inflation, you don't buy a drug stock. >> yeah. >> you don't. >>well, one wonders, carl, what the move in the 10-year yield today will mean broadly speaking we get closer what 10 basis points away from 2%. >> yeah. two-year high on 10s it was the two-year that was

immediate following the jobs number, jim. >> yeah. and these moves like that's here it's frightening to me because what people are saying, all right, the two year -- 30 year [ opening bell ] >> that sends the session down how do you have a recession and job growth we rarely ever see i don't know but, yes it's the short saying look down. and the short end is saying no. >> major hospitality wanls up 13 year on year 13 where the quit rate of the industry is almost 6%. when powell said we have plenty of room to raise rates and not hurt the labor market, it kind of makes sense. >> i think so. i mean, i was talking to jim fisher in waste management they're experiencing 7% wage for people who work to pick up garbage. and he said to me no one wants

to pick up garbage to find people, you have to pay a lot. and, i mean, if you listened on his conference call like what do do you so you to get people to pick up the garbage. >> yeah. it would be nice if they did it in new york city and we could find more here, too. >> certainly but honestly so the nationwide company and it is just -- everybody has to pay more to find people. >> the wages are going up across the board. >> yeah. >> amazon's average hourly earnings is $18.50 waste manager couldn't cover it. amazon could cover it. waste management didn't have an uptick in demand to make it so it was not significant that's what i'm saying. >> it hit their earn sngs. >> there you go. >> kind of reminds us of what clorox did say on the call last night, jim they talked about prior inflationary periods usually takes them 12 to 18 months to institute cost-savings

program. this may take longer because of the inflection of the cost pressure. >> yeah. you know, i was a little mystified by clorox because not only was the clorox pressure but there the demand is the question you remember trying to make it -- finding something that does apples to apples is demand. there's not the demand we thought for particularly the products that they were making for the pandemic you know, they could have easily said it turns out it's not by service. it's aerosol but, you know, look at this they spent a lot of money doing that. >> yeah. >> they met that demand and the demand went away and the household demand is not picking up where is the commodities the pricing is really bad. getting the stuff from a to b is bad. >> i see you looking a the downgrade of atlantic. >> yeah. very powerful downgrade.

talk about the reality est they lauder had tremendous demand and made something because that's a good high end stuff. by the way, you know, well, it's another company. they managed it very well. it's one of the companies. that's a segment where there was high demand. and i think it's somewhat natural. people started going at it again. >> yeah. the fragrance up 30 i remember seeing yesterday remarkable year on year. >> yeah. i know it he's never had -- that was the best quarter ever. double digit in every market except for china where it's high single digit and china is on lock down. if you're doing high single digit in china on lockdown what would happen if it opened >> i would assume it would be better. >> 400. >> 370. >> yeah. but europe was, you know, another thing that we are haven't talked europe is strong and in many ways, it's stronger than our market in a lot of

places luxury. >> lvmh is the company. >> 30% growth. 30%. these rely a lot on china. lvmh they still do. >> they do. >> yeah. they're impressive. >> yeah. >> it is. >> at the high end. >> yeah. governments are giving people to pay their electric bill. >> exactly look at the contrast in china, by the way xi jinping doesn't want ostation he's trying to stand out if he gets ostentatious. he told made in china, for china. he said make up is cool. he said make up is cool. >> right. >> he actually has -- they have categories that are okay and categories that are not okay >> right. >> because they're showy this is the culture.

make up is okay. but, you know, if you want to go by jordans, i don't know i mean, the same way they're looking to see whether you bought cough medicine? they're monitoring everything you buy. if you're showy, i think you're going to get paid a visit. >> not a place want to be living. >> we're watching the opening ceremonies putin and xi making an appearance. >> that's 1951 the russians and chinese are trying to figure out. >> that was fiction. [ laughter ] >> kind of. >> yeah. foreign payroll exceeded expectations in january. despite the surge in omicron cases, unemployment at 4 joining us this morning the first response from the white house secretary of labor marty walsh. mr. secretary, great to have you back good morning. >> thank you for having me this morning. >> so, the thinking going into the print was millioning of americans had to call out.

some were not paid they would not be counted as employed and the whisper for a negative print what happened? >> well, i think, obviously, we had a good month there in creating jobs in america and i think a lot of -- well, the basic understanding is that i think the american economy is, resilient. lots of employers and employees are learning to live with the pandemic i mean, i think we're in a lot different situation than we were in march of 2020 or any part of 2020 for that matter or most of 2021 i think that certainly is one of the big factors here, i would say. >> now we've talked about the data collection itself the last few months once again upward revisions and, i mean, the doubling of the initial print. how reliable is the survey, do you think, at this point >> very reliable we spoke internally this morning over the last 10 years we've had similar revisions to the reports over the time. so when you look at the end of 2021, the number is about 6. 7

million jobs that have been created under the administration president biden's administration clearly, you know, this is a good sign today. a lot of good -- a lot of good signs in the report. but, as always, we have more work to do we have to continue to get more people we have a good outlay of participation went up a bit, as well, this month it's a good sign, as well. we have a ways to go we know that. >> jim cramer here great to have you. congratulations. good number. >> thank you. >> i'm trying to figure out what is your take on how many people have decided, you know, i got to rejoin the work force because my benefits are running out and i need the money versus how many people, you think, rejoin the work force because i'm no longer frightened of covid? >> i think there's a little bit of both. when you break the numbers down about the participation rate, if you look at ages, i think 25 to 54 we're seeing about 84%

participation. most of those folks need to go back to work because they're in the earnings year. as you think about an older work force with the so-called great resignation, i think hope flil we'll see so. folks come back into the work force as we go into 2022. there's many reasons i think that one of the biggest underlying issues in this country that we still have to address is child care. that is usefully across the board. getting more women and families participating in the work force. it seems to be one of the biggest issues i would say the second is the fear of the virus. >> mr. secretary, you know, what about the numbers themselves how much we can believe or should care about them on a monthly basis when we have a revision like the one for december originally told 199,000 jobs and now 5150,000 how does that happen >> i think bls is transparent and credible and certainly the bureau of labor statistics here the department of labor have been counted on for decades to put numbers out.

i think those numbers, very dependable certainly i would much rather be on your show last month talking about 510,000 jobs than 199,000 jobs, but certainly, you know, we're looking at the systems as we move forward here not how we collect data but looking at the revisions happen all the time. >> not to that level not to that level, do they i mean, that's a big -- that's double. >> but, again, we can't lose sight that we're living and working in a global pandemic a once-in-a-century pandemic the show previous there was talking about recesses i don't think it's necessarily deemed a recession we're dealing with a pandemic unlike anything we've ever had i think hopefully as we continue to move through 2022, we continue to follow president biden's plan as far as dealing with the pandemic, dealing with inflation, dealing with the cost and supply chain and the challenges the president has been tackling head on we will hopefully start to see some of

this normalcy settle back into our economy. >> okay. i have to follow up with what david said we deal with companies company like amazon. amazon has, in many ways, a microcausam of what the government has to do to try to calculate this have you called someone like andy jazz si have you called bill mcdermott at service now have you brought those people into washington and say, with listen, we don't like our revisions. we know you can do a better job. how much time have you spent with them? >> actually i was in new york last week. i spent a lot of time with ceos of corporations, largest corporations in this country talking about everything from job growth in their companies to the reasons why people are coming and not coming back to work to what we can do as far as training workers to the omicron variant of coronavirus you look at the different pieces and bls is talking to all the experts in the country, as well. and they're constantly talking and updating information and

looking at how do we make sure we get the most accurate information as possible? and i standby the numbers. i think it's important for us to do that. and, again, this morning when i saw the revision, not necessarily the number this month, but this number is great. when i saw the revision of about 226,000 jobs over the course of the year, i said why is that and statistically over the last 10 years, i was told by the commissioner that this is constantly happening over the last 10 years and we're not out -- when i say we're not out of whack it's about statistically the same revisionary every year at the end of the year. >> yeah. annual revisions that's great point one last thing on participation. with you look at 16 to 24-year-olds, we have labor participation now better than precovid a lot of those young people, as you know, are drawn in by better wages. they're foregoing education. do you expect there to be negative sort of externalities to the economy long-term because of that? >> no. we have to deal with that is make sure we have good, job

strong job training. many are getting into the economy because they're supporting their families, as well i don't think we often think of that when you think of 16 or 17-year-olds they're supporting their families and bringing money into the house to put food on the table i think that as we think about work force development and job training, i think we have to continue to invest in our community colleges we have to continue to invest in the high schools across america. that's why myself and secretary cardona and secretary from commerce are having conversations about this, you know, this new -- i wouldn't say it's new but this emergence of younger people going into our economy. we have to make sure these kids aren't just getting into the economy and working a minimum wage job or a little more than that we need to make sure that as they get older, they have opportunities to get into the middle class. >> finally, and i know this is not today's pressing issue, but there's been a lot of talk about the path of legal immigration and how much it weighed on the labor force. is that conversation going to reignite

>> i mean, that conversation all the time when i talk to companies and folks i know the president filed a bill, honestly congress needs to act on immigration. it's not a democrat or republican issue it's an american economy issue we can't put a band aid on a situation where people in america need more employees. i think that immigration reform is one of the most important things that congress can do in a bipartisan way to help american companies. help american economy in creating tunltds. >> you have a cover on that from the chamber of commerce and a bunch of other groups. mr. secretary, thank you so much have a great weekend >> thank you, you too. >> marty walsh i want to come back to a story we've been talking about on set but haven't followed. it looks, also, it involves discovery warner discovery suit, to be. that's the departure of cnn chief jeff zucker. somebody who was our boss, actually, i think for all three of us. we go back long enough when he

ran nbc universal, as well departed as a result of violating policy by not disclosing a relationship that was ongoing. a lot of questions around that and why he was dismissed may have been failed to disclose and violated policy. it brought up the larger of question what will happen to cnn? was there any involvement by david zaz lot of, who will be, of course, running the company when the spin from at&t is completed in the second quarter of this year at all and he was a guest with joe and becky out in california this morning. here is what he had to say about his and john malone will be a board member here.

>> there you have. why were people asking the question some are going back to an interview i did with dr. malone back in the fall or one of our -- actually, we did a couple of interviews i asked him his views on the future of cnn. whether it made sense to be a part of warner discovery here was the answer that had people wondering about this zucker departure. >> i would like to see cnn evolve back to the kind of journalism that started with and actually had journalists it would be unique and refreshing i think the coward's way out to sell it. or spin it off and sell it i believe that good journalism could have a role in this future portfolio that discovery time

warner is going to represent you know, i'm just one voice here. >> and no longer a voice with voting significant voting stake, of course, remember he did have not voting control or negative control of discovery he gave it up as part of the deal he's an important voice here somebody that david leans on, as well you know, guys, there's an outcome here that may be interesting. they certainly were a -- well acquainted he's tasked with $8 billion of free cash flow by 2023 running a company that is 4.5 times levered. originally they'd said five times levered. 2.4 billion shares outstanding when you do current enterprise value given the debt they're taking on and the market cap we

can back in on 2.4 billion shares times that price, you get about 7.5 multiple value ebitda to enterprise value. he has to figure out how to deliver on 3 plus billion in synergies. one wonders if it makes it easier for him when cnn in is part of the hold to look at the cost structure significantly look at the cost structure of cnn and cnn plus, which, by the way is going to cost hundreds upon hundreds of millions of dollars and say, well, there's an opportunity for us to get a leader he did speakly about the course of the interview a couple of hours ago with "squawkbox. nonetheless, one has to wonder when he sees what he's got there. he sees an opportunity to perhaps continue to cut costs and therefore deliver on the synergy numbers and deliver on the promise he keeps talking about for this warner discovery, which will soon be coming to a theater near you. >> david, i don't know

and facebook stands for okay i have that tremendous faith he is the person that can do it i think we all at one time or another enjoyed his company. know how good he is at his job the world is going away from his kind of programming. so it is the synergies i bet there's so much memory. >> yeah. i think there's a belief a good amount of things that they can cut through. >> he said actual journalism is he saying that -- it's part of a long interview. we didn't share a lot of it. there are so many journalists there. but he was pointing to what he believes is sort of the tilt toward more opinion at cnn from

the roots previously talked about fox and fox has more opinion but mixes in journalism you know, people made a lot of it i don't make as much of it i believe zaslov -- the last thing i want to do is interfere that get the hackles of the doj up but, you know, i believe that departure may be helpful for him in the sense of as they take over looking for opportunities cnn plus it will be interesting to see what the real future of that will be. >> yeah. >> i think where he's out of step, we got to enjoy him play but that's what they used to do

i don't know we've had the journalism for a long time. they would tell you we've had fox journalism and we've had is that journalism and facebook people who make feed is what you say. >> or joe rogan, before they decided to put a disclaimer. by the way -- >> it seems to be difficulty between fact and fiction. >>it's really people who don't who, in a professional news department let's say you just made up something, there would be huge repercussions. >> thankfully we're in financial news where it actually matters, because there's money on the line. >> steve scherr went to avis -- >> he's not starting until

february 28th. >> march 1st get it right. >> i think it's march 1. >> see, this is what we are worried about. >> was he as nice as ever? >> of course >> that's one bit of news we hadn't gotten to >> special event today at 12:30 p.m., lisa su will join jim for the second cnbc monthly meeting. you can always sign up as we go to break, can't take your eyes off yields today the two-year, once again getting above 1.30 ten-year is 1.9. the curve has huge implications. we'll be right back.

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if you have a company that has a good blithe and dividend, it's going to work i think that's coca-cola a good deal with coors, by the way, with harder seltzer this topo chico you can't keep in stock >> remember the mini, the development of the mini package? that's one way to solve it. >> he thinking about form factors. you know, he does not carry himself as a guy who is, like, look, i'm a man offed world, but he he really has his fingers every. his time in mexico was to get this topochico, he will talk about that

it's an amazing product. he's got it under control. i think he's going to say supply chain? how about demand chain the demand is unbelievable. >> take a moment to promote your meeting. >> lisa su, called me up, said, jim, basically you love intel, but let's have dinner, and it was $5 i didn't say anything. she proceeded to pants me and school me and explain to me that she was going to beat intel. [ laughter ] >> i went home and told my wife -- but the same year as my wife, two blocks away from each other. she said, she probably is going to do that she sounds like a smart person i want to find out how does

someone like lisa su, so fabulous, make is so she challenged intel and i think beat intel, $5 to $120 five years >> it's been a good run. >> it's about brains, determination, honesty, strength, and making they feel like a complete idiot. >> there was a time that amd exists at the pleasure of intel. >> believe me, pat gelsinger, he's nice. good weekend, jim, see you tonight. >> you, too. we'll follow the rebounds as the s&p is hanging on to gains 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. ♪ ♪

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(music changes to rapid funk) - [announcer] ensushiastic. intensely excited over how it looks before discovering how it tastes. ♪ on time, lowest price, or we'll make it right. (chicka-chicka) grubhub. good morning i'm here with morgan brennan and david faber. the jobs number well above expectations, but so are wages

dow down about -- >> whipsaw is the right adject tiff there we're going to start with amazon up about 11.5% right now, getting a big boost in its cloud business we're going to have more on the tech giant later this hour, but speaking of vehicles, ford shares are falling, a hefty miss on earnings. the chip shortage, other supply constraints crimping production. shares are down about 10.5%. and we'll end with clorox. the company hit by considerably lower profit margins you can see those shares are down more than 13% right now david? >> morgan, the u.s. economy added more than 460,000 jobs in january despite dealing with omicron cases. in december, those revisions, steve liesman were enormous as well steve is here to wrap it all up

and explain it all for us. >> yeah, and maybe take a victory lap. you'll remember back in november and december, i was very skeptical of the low numbers, but today much stronger than expected january report but because of continuous massive revisions that dave was just talking about, there's some reason for skepticism. but it was -- this indicator was much stronger than previously believed it's tempt to go arguing that the january data that all danger of omicron has passed. we've a bit more cautious than that, because other data has shown weakness in this wave. more importantly, a lot of negative forecasts are out there, unemployment rate up 4% 6.2%, almost 1.4 million people

coming back to the workforce, hourly wages up, probably drops out during the month november and december revised up, as david said, 709,000 here's where are the jobs were retail up 61%, reversing the trend. education and health services up 29,000 now, a big reaction in stocks, bonds and the outlook for the fed, where the strong number plus the revisions have prompted the pricing in of faster and more rate hikes for the first time we're showing you more than a 50% probability of a february rate hike that had never been, up above 50%, there it is so, we're adding it to the chart what they have done is gown to consecutive hiblgs, that had been later in the summer november 56, and there's that

february 6 hit it's trading even since we have spoken whether this particular number holds or not, there should beling change to anybody's view the job market is very strong and a long way from being in balance. that said, the return of workers to the workforce, a positive sign we could be, could be moving in the right direction. guys >> yeah, steve, to come back to the revisions, you mentioned, of course, you had a different view at the time. we asked marty walsh, and i would say he didn't really give us an answer, as to what it was so off what do you think happened >> that's that song, there's a pandemic going on, david i think that's a big part of it. the response rates of businesses, they had been trending down even before the pandemic, and they got particularly low i didn't look at the response rate this month, maybe it was higher, maybe it was lower, but the response rate has been very low. i think that's been one problem.

they come back and get it right. what's weird is the market trades on a number that ends up being wrong, i don't know if they come back and correct it, now they're correcting it in spades because of the idea that maybe the fed had been further behind the curve than it thought. i will say this, david we have done a dramatic shift at cnbc here in reporting the high frequency data it's not nearly as clear as an actual number, but people have to tune in to what we're saying here we get the data week by week now of what's happens in the jobs report from various software companies that handle human resources. so you've just got to pay attention. the way that we gauge the job market is changing it's not just taking from the payroll report. >> we know you're paying close attention and bringing all information to us. we have amazon and snap both seeing massive gains after

reporting results. amazon is up 12%, snap is up more than 53%. we're joined be john blackeblackledge and jon fortt. gen, good to see you both. john blackledge, you have a buy rating on amazon we can talk about control of costs, strength of advertising and the cloud business, but you did also have net income rising as sharply as it did because of pretax valuation tied to arrive jan. walk us through the quality of this report and your takeaway. >> >> people like through that, and the 1q guide was also good we found investor expectations seem to be lower thanle sell side consensus estimates were, so to your point, amazon had a big beat, 39% above consensus it

was a little below our estimates, but in line with buy side from what we can tell, and from 1q, 3 to 6 billion was a range that was right around the sell side, and we think it was above the buy side amazon has also come in above the high end of the op income guide ranges, and that's why i think you've seen the 12% up side today, and we reiterate outperform >> jon fortt, you've been covering this company a long time, covering it, watches the growth on the one side, you have e-commerce and the retail business, which continues to see the growth there slowing obviously incurs a lot of costs. on the other side you have this high-tech business as well walk us through yourtakeaways on the results. >> there's the dangers in paying

attention to the interesting trees here and missing the forest i think this was one of the most remarkable in a positive way quarters that i've seen from amazon in a long time. for this reason -- bottom line is amazon's leading two strategically important but diametrically opposed missions and model at the same times that reps the future of the global economy. on the one side you have the cloud-driven a.i. revolution represented in aws, on the other side people-driven logistics and omnichannel represented by amazon with all the investments in warehouses, transportation, et cetera. because of the way amazon has structured its business, they managed to make up for the enormous costs, right, on that people side with the profits on the cloud side i think that's particularly important. what amazon is therefore able to do is continue to drive its

strategy forward and make these investment, despite the fact we have these supply chain shocks, labor tightness, and omicron, right? they talked about how they were having to pay people that weren't working, not only did they raise their starting wage, but they are paying people overtime to make up for people who they were also paying who are out sick with omicron, yet they still managed to turn in this quarter for that reason, if you're an investor, you have to think about how amazon can position itself at both ends of these missions and on you that might be different from how the be tors are able to do that. >> >> i can't get past what paypal said. are you expecting a greater deal of churn or prime demand destruction as a result of this fee hike >> i don't think so, carl.

amazon prime churn is kind of like verizon it's probably less than 1% a month. so they're raising just in the u.s. at this point they're raising this $20, but think about a they have added. awful content on prime video, the exclusive rights to nfl games on thursday night starting next year, and as jon just mentioned, awful investment in their fulfillment infrastructure to get goods to consumers faster and faster i think it will be fine. actual le they called out added millions of prime members globally and the retent has been good. >> jon fortt, what a week for digital advertising insights just the fact that amazon finally disclosed, and then, of course, that coming on the heels of meta, which we saw hit so

hard by so many different factor, but advertising and impact of the apple privacy changes, continues to be a drag. and then you have senate, which is just snapping higher right now. do we need to be talking more prominently as amazon as number three in the marketplace >> i think one theme in this season is diversification. both for investors in general, making sure they are diversified after the amazing run that the market saw in 2021, and also diversification within these companies' portfolios of businesses what we ended up seeing from facebook is their -- meta is really dependent on ios for quality customers to target within their ecosystem so the idfa changes are hitting them

at the same time, with snap, yaw, you saw this pop. it's more about snap has fallen for more than 80 bucks a share, but on amazon's side, the advertising is very much within its own ecosystem. it's not affected by what people with apple does. it's able to grow its business almost like it's on a different planet >> finally, on snap, john blackledge, there's been a lot of commentary on the progress on ios challenges, but you only raised your target by a dollar, right? >> yeah, we downgraded gen-13, to jon's point it had been down 40% suns our downgrade, it was just the growth off trade in the market and off the solid 4q

results. i would say we downgraded based on this survey of ad buyers, that suggests that the ios changes would be impactively for at least six months or more, which is what snap called out last night but they're not feeling is as much as facebook, obviously. i think there's a couple reasons for that one is facebook has typically tieser, they're the most impacted by these ios change snap doesn't have nearly that many advertisers and they're mostly bigger advertisers. snap is just earlier in performance marketing. they're only three years into it facebook called out -- or meta called out a $10 million headwind, that's two times snap's ad revenue this year. management sounded good. it's been a tectonic week for tech stocks.

gentlemen, thanks for kicking off the hour with us >> thank you. here's a road map for the rest of the hour, including the january jobs don't mitts an exclusive with jan -- >> and sanofi is under pressure. we'll have the ceo next. and hacking the olympics why the fbi is warnings athletes and traveler to use burner phones in beijing. much mover "squawk on the street", straight ahead. look, as cfo it's my job to be ready for whatever's next. that's why i have my finance team, randomly hurl things at me. it's also why we use workday. it gives us insights, so we quickly pivot our strategy, people, planning, you name it. sorry, sir. i will aim straight at your next step. see that you do. would you like some coffee? workday. the finance, hr, and planning system for a changing world. ♪

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sanofi reporting earnings in line with expectations, even as the vaccine business underperforms. the company says it expects booster approval in the coming months joining us is paul hudson, ceo i ike just like to start there you're transforming sanofi to become focused and agile, and citing a series of transactions that took place over, let's say the last year. have you become more focused and agile? what would be the proof of that. thank you. we definitely are. >> we launched our new plan identity we dropped one name for the company from a group, and it's reflect ink every the transformation going on. you have to remember we're

growing right across the business in all of our decisions. you know, last year we grew more than double than the year before we acsell rated 46 programs several readouts, and ten first in-human discoveries started with our own discovery medicines. it's never been done before on this scale we've done it by financing it ourselves through good reallocation strategies, data, digitization, and we're showing people what we can to to transform medicine it definitely feels more agile >> one of those key drugs that they're focused on is dupixent, but give us a sense in terms of the road map there in terms of penetration rates?

it's obviously a very important drug for a number of diseases. >> look, first of all, it's changed so many lives. over 300,000 lives, and their families positively impacted we grew more than 53% last year. it was over 5 billion euros in terms of total sales that stands on the shoulders of transformation of many patients. we have just started less than 9% of the patients that should be on an advanced therapy are on an advanced therapy. we have somewhat to do on education. we have more indications to add, and with a bit of luck in a study next year, we may even enter copd we're excited how it's pioneering into these ideas, but it reflects how quickly we're

moving as a company. just three or four years ago, it was a $500 million medicine with just a handful of patients now we're over 300,000 patients being treated annually that gives us a powerful opportunity to reinvest in science. we're perhaps ahead of where people thought we would be with an incredibly bright future ahead of us. >> i want to go back to the covid-19 vaccine for a moment, a more traditional approaches. how are you thinking about that market right now would this potential be a booster? is that how you're targeting it? or an opportunity to supply first shots to folks who haven't already have vaccines, whether it's because of access or maybe some nervousness, skittishness around the newer technologies?

>> first, it's an established platform, so, you know, as far as safety is concerned we're studying it as a booster we have seen the early booster data, it's as good as mrna, or as the think-on, a third our fourth dose. wee rec-- we have seen the boos data, amazing. we're looking at a phase three program safety and efficacy. maybe there will be a need later on in the year that will be fine. we said from the outset, we want to be there if needed. we couldn't stop we have made vaccines for others, we have never wavered. that's continued until today if we can play a part, we will be there. >> how are you thinking about the opportunity around covid-19 vaccines is a booster market something

that's likely here to state? or a sit way where we do perhaps reach herd immunity. this is a virus that gets weaker and weaker, and the opportunity does begin to fade away? >> again, an excellent question. the reality is we sort of predicted by 2024, the world would be more normal and the booster shots in volumes would be roughly what you get for the average influenza season right now. i know that may seen a long way off right north, but i they are we're all starting to feel a shift, and as the virus becomes less challenging, then the reliance off other doses declines it depends on the severity of the disease and how many people have been vaccinated, for us, like i said all along, we wanted to play a part we haven't stopped weaver right there

at the same time we've continued in breast cancer, in copd, like i menned, multiple sclerosis it's nonstop and needs to be nonstop. we're proud, by the way, of all of the work that everybody has done, keep us moving, even though a lot of it has been by zoom >> i wonder, you know, the approval, the debate over a vaccine for kids in the u.s., and the relative low uptake so far has a lot of people wondering about the impact over the long term of emergency use authorizations, and whether or not that feeds skepticism on all kinds of drugs for years to come do you worry about that? >> people have become vaccine literal over the last few years. there's one thing that's for sure that i strongly hope everybody understands. we recommend getting vaccinated to protect yourself and those close to you

we think the medicine is available, the vaccines are enough to do the jobs that need to be done and, you know, get on with it. it's not that far away i repeat, despite that, despite everything that's going on, you know, for us we doubled or growth, advanced 36 programs it's been possible to transform a company of our scale and to do good to transform the medicine, are respective of what's gone on we strongly hope everyone understands the importance of vaccination. maybe after this people will be more enthusiastic about getting their flu shot into the fall each year, because now they understand how important these things are. >> when it comes to flu shot, it was down 13% were you surprised >> it's a record flu season for you. a lot of people went to get their vaccine in the u.s. at the same time as the covid booster,

and decided to wait for one of the two shots. in europe, the booster was a different timeline it's never been higher for a flu season for vaccination when we get into a normal cadence, you'll see people know it's important. >> you mentioned doing a lot of this on zoom where are you in terms of getting people back to the office what are your expectations for that we know there's a new hybrid structure. we know our people have operated brilliantly. we know it needs more face-to-face time. we think we're at the leading edge in terms of its policies. it's not easy, but people are enthusiastic to be back. the new tools and the way we operate for the people in the building and out of the billing, that's the future of work. as leaders, we need to be sense i have to managing the nature of whether people are in person or not.

again, in the end, it's about advancing the scientific agenda. we'll find a way like other companies will, too, but i'm optimistic we have picked up good traits out of the pandemic, has difficult as it's been, in the way we work. >> paul, thank you for your time. >> thank you >> paul hudson from sanofi. after the break, we'll dig goo ford, under pressure today during february, we are celebrating black history, and feats tur some of our contributors here is robert johnson, sharing how he achieved succeed. success. >> an entrepreneur, there's some gene that floats around inside you, that makes you want to achieve things that others may feel is not possible my inspiration came from believing in myself and having friends who encouraged me. i think it more black americans had that encouragement, support

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welcome back to "squawk on the street." shares of ford falling after reporting a big earnings miss. phil lebeau has more on the quarter. hi, phil. >> morgan. in the fourth quarter, ford earned 26 cents a share. guess what the street was expecting? 45 cents a share ford said probably analysts were a little more optimistic, as well as the ability to immediate the demand that was out there. clearly the chip issue was still there. nevertheless, the profit is expected to be up with 10 to 15%. they're still there. that's a headwind. joe during the questions was regarding ford's ev portfolio. the f-150 lightning comes to

market this quarter. reservations nearing 200,000 the mustang mach-e is still out there. ford says we're learning as we're building these mach i have -- mach-es. here's just farley last a night. >> i'm excited, being in this industrial as long as i can. both from the customers' uses, as well as actually all these integration opportunities. >> take a look at ford versus tesla. the reason we're showing you these two. increasingly the comparison is less bon volume, but will be more and more about margins. when you compare ford, in terms

of ebit margins, no comparison jim farley talked about this on the call last night. he knows they have to raise those margins. he says that will happen even as they ramped up ev production quickly take a look at the cars etf, ford and tesla both in this etf. had a heck of a run last year, but sol with anything related to ev, it's having a bit after challenge this year. >> thank, phil many of the stocks, as you point out, down and down rather sharply. that margin comparison is fascinated rahel solomon as an update. just hours before the opening ceremony for the winter olympics, the leaders of china and russia stage add show of solidarity against what they called attempts by outside

forces in a joint statement, they accused the u.s. of trying to destabilize hong kong and ukraine. at the opening ceremony, a spectacular light show, a traditional parade of nation one of the final torch bearser was a member of the uighur ethnic minority. u.s. troops now arriving in eastern europe president biden ordered the deployment as a show of support for nato forces there. back here at home, the winter storm that's been causing travel and power problems over large parts of the country has moved into the northeast 2600 u.s. flights have been canceled from texas to pennsylvania of course, we're here dealing with this freezing rain, which seems like it's been coming down all night. >> rough times for the middle of

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welcome back to "squawk on the street." it's a mixed picture right now, s&p 500 basically hugging the flat line. we're going to turn back to the big story -- tech stocks amazon, snap, pinterest, all surging after posting results. this is the day after meta posted its worst day meta is still under pressure again today. mike santoli has more on the volatile week. they moves have been huge. >> yeah, just springloaded

moves, morgan. it's hard to generalize what it's almost the point, that you've had winners, businesses as you will like apple gave you, like microsoft gave you, and then the big stunners, total change in business model outlook. they're all down about 2.5% relative to a flat s&p 500 so, in general, the answer to that question, can big tech earnings save the market the answer is no, but it's also been a divergence within the group. in terms of these moves today, you really just have to zoom out a bit and see where we're coming

from it's really easy to have a huge move back to a proo is that a stock was at very recently that's the case with snap. we've been at $40 the last couple weeks, now broad numbers 35 that to me explains the big percentages moves. the final point, whether you're trading by gut feel or quantitative risk model, when a company like meta can go down 26% in the day, it has to make you widen out your assumptions of how much things can move, and that also feeds on that near-term volatility >> it's such a key point i think about matt milley writing a note that there's still leverage in the system according to him, perhaps it's safe to say there have been some big longing on the street and it does not bode well for the intermediate term potential for the stock market in the sense of some of this, could we continue to see more

shakeout, it can larry when you think about how top heavy the major averages are >> the way it looks right now, if i take a snapshot, it does look like there's been a relative peak in nasdaq in the overall market. >> okay. >> that's just the way you plot out the chart. it doesn't mean it goes straight down from here, but i do think that's a bit of the working assumption right now, even as you're going to have a lot of variation within the nasdaq. >> mike santoli, thanks. >> thanks, mike. back to the jobs number. joining us goldman sachs chief mist on yet another interesting print. jan, good to see you. >> good to see you, hello. >> i wonder how you think the fed is weighs, obviously what wages are doing here, and more than a million people coming into the labor force

>> i mean, i think the wage number is probably the most important, especially on the back of strong wage news in the employment cost index. a week ago the headline number was a little softer there, but actually underneath the surface there was strong report. so i think there's increasing evidence that we're accelerating to levels that ultimately aren't really consistent with 2% inflation, if they are sustained. now, we don't know whether they're going to be sustained or how much of a one-off perhaps is in some of the they numbers in late 2021, early 2022, but i do think it speaks to the idea that the fed will want to get going and deliver a series of hikes. >> yeah. i think it was bullard a couple days ago said that five for the year was not a bad bet, in his

words, but that he didn't see how 50 basis points helped them out. do you think that calculus has changed? >> no, that would by my view as well five hikes this year, i think seems like a reasonable number obviously it's going to depend on, you know, what the numbers say and what financial conditions do, but that is our expectation. 50 basis points, i think the hurdle for that is quite high, and i don't think that's likely, especially at the leadoff. the thing to remember about 50 basis point hike, is they were pretty common at times in the past whether the fed didn't have tools to communicate about the whole path of hikes. now they have a summary of economic projections, where they can indicate more hiking down the road i think that reduces the need

for being very aggressive at the meeting in the middle of march. >> jan, it's morgan. the fact we did see such strong job gains, and not only for january, when everything thought omicron would have a much bigger impact, but the upper revisions we saw the fact we saw this nice pop, is there read-through to be had to the end of stimulus, and the fact that some of those checks going out directly to people's bank accounts, including things like the chiles care tax credit ending had something to do with this >> i think you have to be careful with the month-to-month changes in the household survey, because they made some changes, the annual changes to the population rates, so those data have to be taken with a grain of salt with that said, we have seen some improve, i think in labor

force participation in general, and we, i think, do have some evidence that people might be coming back into the workforce one other interesting observation is that the pace of wage growth, while generally very strong, has actually softened somewhat in leisure and hospitality sort of post the expectations of benefits on labor day. you have seen a deceleration there from extremely rapid growth rates to slower growth rates. to me that sort of says they kinds of policy changes do have effects on how people behave. >> that's interesting. you couple that with some of the pressures we think are happening, are lightening up, people are looking forward, jan, to cpi and wondering whether or not that can be in addition to the eci last week, a little more proof in the pudding that we

have peaked or are peaking >> i wouldn't really expect that quite yet. our expectations for the inflation numbers over the next few months are still pretty firm, still looks like some of the factors that are driving the strength in inflation in a good sector, used cars, new cars, i would still expect a fair amount of strength will as we go through the year, i do think the pressures are likely to 'bait as demand slows in the goods producing sector and hopefully will get continued improvement on supply chain disruptions and covid, but i think we're not quite there yet. >> finally, jan, is an inversion in the curve, even partial, likely and material to the economy's broader concerns

>> i mean, we're not expecting an inversion, you know, any time soon i do think the curve is obviously flattening in an environment in which the fed is, you know, starting to get going, and probably delivering a series of hikes that's very natural. there's no causal relationship between changes in the slope of the yield curve and subsequent growth, but it is a good predictor, in part, because it measures the stance of monetary policy, and as the fed starts to tighten, that's going to be one factor that will need to slow growth as we go forward. >> all right with the ten-year at 1.93, that takes you back to december of '19. jan, another fascinating friday with you good to see you. >> thank you as we head to a break, take a look at shares of the retailer kohl's we did get news from the company in which it talked about

expressions of interest. remember, there were a couple interested parties in buying kohl's, to which it says they have received them, but do not reflect an accurate value. wel rhtac 'lbeig bk. ♪♪ 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. chewy.

welcome back the sweeping america competes act aims to win the economy in the future lawmakers on both sides of the aisle agreeing a more diverse and inclusive workforce is critical to success. y ylan mui has more. hi, ylan. >> good morning. the business community is focusing on that bill. it would also direct a billion mo increasing the diversity of

the innovation economy it authorizes higher-ed institutions that serve minorities, $164 million to study barriers in the field, and $17.5 million to combat sexual harassment in the industry >> depends on it from our defense to the progress and dealing with the diseases. we have to keep our research enterprise moving, updated and notscrambling to find talent o money to compete with the world. >> reporter: now i spoke with the president of spellman college in atlanta which produces more black women with ph.d.s in s.t.e.m. fields. she says they can help by making this a priority. the house is expected to pass the bill on the floor shortly

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reports of the cyber attack on news corp out this morning. targeting emails and other jojush journalists of the country and warning of high risk of hacking in china e eamon javers has more. >> reporter: that is right target of the chinese hack discovered on january 20th in an email to pemployees this morning, news corp's ceo says some data was taken. the situation is now contained

the hack affected email accounts from company headquarters and news technology services and dow jones industrial average and news uk and new york post. the cyber firm working on this says it has a chinese nexus. this comes on the opening day of the beijing olympics which experts believe could be the most hacked and spied upon games ever this week, the fbi issued an alert warning everybody going to the olympics to expect any malicious somcyber attack the chinese government itself is also expected to be one of the biggest surveillance actors during the games one cia analyst tells me many athletes to expect rooms to be bugged and movements tracked >> they developed artificial intelligence and facial

recognition software far and above what you see elsewhere in the world. this is not a big effort for them >> reporter: the chinese goal here is to avoid conduct at the games they see embarrassing to the government they will be on high alert for criticism and comments around democracy and human rights or gender-related issues. back to you. >> eamon, you brought us the comments from the fbi about chinese cyberes es es espiona well >> reporter: one of the questions, david, what were the chinese after? what was the target? a lot of intelligence to be gained inside news corp. powerful people including rupert murdoch or was it access to the data before it goes out front

running information going to the world. we don't know yet. >> eamon javers, thank you catch the olympic games on nbc and peacock. s&p is lower nasdaq is hanging on to gains given the strong moves in tech that does it for "squawk on the street." "tech check" starts right now. good morning i'm here with carl quintanilla and jon fortt. facebook and netflix plunged ta taking taking investors