the big employment numbers due out at 8:30 a.m. it is national doughnut day and "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm rebecca quick along with brian sullivan joe and andrew are out today things turned around yesterday a major move the dow was up 1.3%. s&p up 1.8%. it was the nasdaq that was the big winner up 2.7% yesterday. by the way, that put all three of the averages on pace for a positive week for the second week in a row. there will would be big news let's see if it holds today.

you are seeing red arrows. dow off 80 nasdaq down 71 s&p off 14 we have the big jobs report at 8:30 a.m. which could set the tone for the markets treasury yields are ticking higher the 10-year yield is 2.9%. you have the 2-year note at 2.65%. the axe is coming down at tesla. elon musk reportedly telling executives via email that the company needs to reduce staff by 10%. the email titled pause all hiring worldwide which has been seen by reuters. musk says i have a super bad feeling about the economy. tesla not available for comment. that would be hard because that is a car shares of tesla are down 26% this year. musk adding to the cautious voiceschorus this week

on wednesday, jamie dimon warned to prepare for an economic hurricane saying we don't know if it is a minor storm or super storm sandy. brace yourself >> by the way, that is not just elon saying he has a super bad feeling about the economy, but acting and shutting down hiring and getting rid of 10% of the work force that is the people who won't show up. if they don't show up, he assumes they resigned. >> i think the brouhaha about your point of work remotely was an early flare a signal flare you wonder if he is seeing this or saying this because of advanced orders for his cars sdpcars >> or is it because of the shutdowns in china it could be a combination of factors. not done lightly

something that is not just comments he is taking actions we will continue to watch this coinbase will now extend a hiring freeze in the foreseeable future it is rescinding job offers that were accepted. it will help with job placement and resume review. the stock lost 70% of the value this year. you are seeing the places. coinbase is down 1.9%. the billionaire brothers winklevoss twins are laying off 10% of the staff they called crypto winter phase which is further compounded by the political turmoil. gemini has been around since

2014 valued at $7.1 billion it has over 1,000 people on the payroll according to pitch book. this is what you are hearing areas in technology and bitcoin and a lot of the big booming areas which have come back to earth. those are the places where you see the layoffs. >> you wonder what crypto winter means. a light snowfall or a long, protracted showdown? >> winter suggests that spring is always around the corner. that's the question. >> we have jamie dimon, the most listened to man on wall street, economic hurricane the most successful entrepreneur pausing hiring with a super bad feeling. on a lesser scale, coinbase and now gemini >> i put those in a separate category we have seen what happened specifically with those stocks same with tesla shares which have come down significantly when the stock comes down and things are not looking as

bright, those are over concerns of what investors have you react to what investors are seeing. >> tesla is down 3.3%. it rose 4% on pace to give back most of what it gained yesterday >> what is it year to date >> year to date. well it started the year at 1,200 it is now 7795. >> it is normal reaction to say rein in the growth they know about the shutdown in china. >> and chevy cutting the price of the bolt ev what was it? 6,000? >> i'm not sure. you start seeing discounts and we have too much inventory and not enough demand. >> especially the segment where we are hit over the head that electric cars are everything and nobody will buy gas fired car again and suddenly discounts and

tesla pausing hiring we'll talk more about this we have another 2 hours and 57 minutes. becky, we're good. and frontier sweetening the bid to buy spirit. frontier would pay $250 million reverse breakup fee to spirit if regulators did not approve the plan combination for antitrust reasons. that is an issue with the approval of the deal next week over jetblue jetblue offered cash for spirit above the cash and stock deal that spirit and frontier announced. jetblue has a break up fee frontier throwing in another $250 million over jetblue. ceo ted christie will join us in the 7:00 hour. i don't think anybody saw the fight for spirit airlines

coming phil lebeau will say you will not get a major airline. >> no more dance partners. that is the issue. >> bran diff ii >> you're good >> i'm crazy. >> that, too >> i tell you what is doing well shares of okta soaring after the management services company reported better than quarterly results unlike the rival software companies, raised outlook for the year the company's ceo says the currency headwinds impacting sa salesforce and microsoft because 22% of the business comes from outside of the united states okta's jied identity is benefits to support remote workers. that's what you see. people are worried making sure systems are secure hoping this stock which is up

17%. >> 17% move in okta. speaking of the cloud, we are watching cloud stocks today after yesterday's rally. the provider of software for ough automating office tasks is up. investors snapping up other cloud stocks data dog and elastic and asana is down between 38% and 68%. becky, forget about the companies which i will not get up here and tell you what they do i don't know no clue. i do know this >> i was wondering myself with elastic. >> or mongodb. >> that's a database company db. >> what gave it away the huge moves is the market broken stocks should not go up and down 16% in a day and 16% the next day.

that's weird >> this is part of the gamification to the system all of the money out there looking for the safe haven it doesn't make sense to put it in cash. inflation north of 8%. your money is worth less every day. you have investors looking for places that is an infliflection point in the market. they are trying to find the best place. we want to be your friend. >> probably huge underlying options activity maybe not in the specific names. when things don't go well, you have the options under lying etf tweaking the system as well. 17% down one day 17% up the next. >> those are companies you are not as familiar with you saw massive moves in companies like walmart and target with the market capitalization the biggest drops they had seen

since back to 1987 happening >> you interviewed brian cornell, the ceo, 32% drop in one day. for target to lose one-third of the value in one day >> that is an unbelievable number these are not small companies. >> you risk chasing off border line investors people who are sniffing around the stock market >> i will say that long-time investors, penalople who look at these price drops and think this is a place to get in it is not the crazy, lofty numbers. if i have a long-term investing plan, that is the time to buy. >> nasdaq futures are down welcome to the stock market in 2022, becky. >> it is not just down one day and up the next. you have 2 hours and 45 minutes

to go. you have big numbers at 8:30 that could change. we will keep close track we hope you are, too when we come back, dan ives has a new note on apple. he will be here to talk about that and share thoughts about the super bad feeling on the economy according to elon musk apple shares down $1 today is jobs friday you have forecasters expecting the economy adding 328,000 jobs in may compared to the 428,000 it added in april you are watching "squawk box" and this is cnbc >> announcer: this cnbc program is sponsored by ib m. ibm. let's create and start crunching a year's worth of transactions

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welcome back wedbush senior analyst dan ives has a comment, but we start with elon musk who is pausing the company over the super bad feelings about the economy dan, good morning. this is something we are paying attention to it comes after jamie dimon's potential hurricane on the

economic horizon is this the canary in the coal mine this is what we are seeing in china. zero covid it has been a debacle in what musk and tesla are seeing as well as others in china and the delivery extrajectory will softn i think demand is out pacing supply goblobal aglobally he is setting the tone this is the knee-jerk worry with musk talks this is going to have a ripple ef effect >> dan, is this an indication of the severe lockdowns in china

with the ability to produce cars or is he seeing something on the demand side of the picture, too? any thoughts or anything you heard that can tell you about the demand picture looks like for tesla and other evs at this point? >> right now from the demand perspective, although this weekend, we still have demand out pacing supply at tesla by 30%. i don't think it is a demand issue in terms of that sense now, in terms of china and zero covid, i think that is 75% of the reason that's the hearts and lungs of tesla when you think about the demand perspective it is about 40% about production this is alsoing something you will see pockets of spending in austin and berlin. this is a different musk in mid-april. the one that bought twitter at $54.20 this really is starting to see a

different tone from musk that is reflected from the stock and what we see in china >> this stock is down 30% year to date. has this been baked into this? is this something investors sniffed out before we got the comments >> you have the knee jerk negative today this is pretty much baked in we talked about deliveries missing from 15% to 20% because of china now the focus on june. this is musk trying to get ahead of it. no doubt definitely a different tone and we have to see how the picture shapes up in the second half a lot of frustration coming from china because that is the hearts and lungs of the tesla story >> let's shift gears and talk about apple. the conference coming up next week we wait to see what they will un unveil we know there is a new operating

system and other things expected what are you most interested in seeing from the meeting? 12k3w4r of course, the software upgrades i think the biggest news is on two fronts the ar-vr vision this is what i believe is the bread crumbs they drop to apple glass. the arv head set that will be released later this year or early 2023 i think the news in our work is apple has won that sunday ticket package for nfl and the directv that expires this could be worth $2.5 billion a year this shows cook and cupertino betting on live sports content that could be announced next week i think that is something that will be significant in terms of

the apple story sdp >> the apple store i is the retail stores. it looks to apple appeasing the workers having 12 hours off between shifts you won't have to work more than five days in a row versus six. those are ways to try to stave off unionization what does that tell you? does it offer concerns if it pays more, does that have concerns for the profitability for the company or are these things the company should be doing? >> cook continues to be a tactician. that is the dna of apple in terms of why so many want to work there from developers and retail stores. i think they are getting ahead of this. they are listening to employees. that is the important part of the apple company and the developers it is smart with the employment

picture. from the margin perspective, they generate more cash than some countries they have the flexibility. i think with what we will see next week, they are in the position of strength despite the category 5 storm that is on the horizon, economically speaking. >> stock down 15% year to date do you buy it here >> to me, it is a table pounder here sentiment is overly negative relative to street underestimating the demand picture. you look at the china picture, we know the supply challenges. we have seen improvement on the supply perspective slightly better than the rest. the iphone 14 and services this is a stock that is the rock of gibralter stock we own here that is why it is our top pick.

>> dan, i tweeted out the other day and i'm a big music guy. i said apple is a great company. it does many things well apple music is not one of those things it needs to be fixed it is a jumbled mess emails are weird when do they focus more on the services side and on the consumer services side you talked about the tv with nfl. "coda" is a spectacular movie. what about the other things? they don't feel apple-ish. >> we go back to the stock apple services is actually the most under estimated and under valued part of the story $1.3 trillion to $1.5 trillion that is in the revenue growing in the mid teens it is about the modernization of the install base that is the difference for apple. if you continue to see is rebust and doubling down on the tv

side if you look on the app store, it is the bark worse than the bite. they continue to just beat expectation on the services. that is important. you combine with product that is the difference with the apple story going forward. that is a big part of the valuation and why we have a lot of comfort on the risk/reward sdprisk/reward. >> dan ives, thank you. on deck, call it buy now pay never. why the micro credit he space is looking shaky as debt piles you will and later on, congress member josh gottheimer will join us for his proposal for taxpayers in massachusetts and new jersey and new york and maryland. the federal cap on state and local tax deductions known as

s.a.l.t. a big issue. we are back with more and that on "squawk" right after this 'd crunched numbers day and night. that's it. to maximize profitability. morning. i have quarterly numbers that are beautiful. and forecast revenue from every corner of your organization. is that important? or you could use workday. the finance hr and planning system that helps cfos make better decisions faster. for a solve problems like a genius world. workday. for a changing world. if you invest in the s&p 500 your portfolio may be too concentrated in big companies. this can leave it imbalanced and exposed when performance varies. invesco's s&p 500 equal weight etf, rsp, is spread equally across the s&p 500, which reduces potential concentration risk and helps keep your portfolio in balance. stay in balance with invesco's rsp.

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welcome back consumers have taken on a lot of credit card debt this year rising to $841 million in the first quarter. that is not the only way shoppers are spending in the buy now and pay later space of klarna it is a space where people are taking on massive debt we have sharon epperson with more >> brian, these point of sale loans are a force in retail spending they allow consumers to buy on the spot and pay later in installments 35% of consumers were

considering using a buy now pay later loan in may according to lender tree. in april, 42% of users admitted they paid late on one of those loans. kenneth lynn of the company credit karma says these products create a major issue with consumer debt burden buy now pay later don't report to the credit bureaus when consumers use these loans. >> the challenge there is, well, you don't know if you have ten other loans or one other loan. that makes a difference in terms of how much you should loan and how much you potentially could pay back as soon as you start slipping back, you might be in the situation where that debt snowballs and you lose control >> ken lin says that's when people get into deep trouble, brian. >> a lot of questions, sharon.

first off, what happens when the debt is snowballing? we had kevin on earlier this week and they implied they can't come after you what is the story? >> there are several things that can happen they can charge you fees and they don't have to lend to you anymore because you are someone who has not paid back or do something where they heare reporting it to the credit bureaus. there are several ways to go about it they will come after you to get the money. the question is how that will happen and the impact that could have on your credit history or score or fees you have to pay because you made the late pay payments >> is it good for credit scores or bad are they checking your score on a klarna payment >> here is the issue

they will not build your credit. younger consumers thinking they are building credit. that positive history is not reported to the credit history actually what they are doing is report a default or ide dling w you don't pay. >> i would never advise this buy a few thousand of goods and stop making payments they can write you a harshly worded email >> i mean, the issue is, brian, is why people are using buy now and pay later. they can't afford it any other way of the it becomes an issue of how they will get that money and the companies get that money from them and what will happen to the companies if people are

not going to be paying >> it feels like college, sharon you know, i remember people want to be your friends and give you a discover card when you are a sophomore in college sure no fees. the next thing you have $5,000 and you wonder what you did. this could be a mine field for a lot of younger people. i can afford $25 a month next thing you know, you have $400 in bills a month that you can't afford sdp. >> absolutely. you are not tracking it the same way because you are using the buy now pay later product and it is not all together. those are the tools the companies are working on like credit karma to make sure that consumers know where they are using this credit and they can keep track >> i want to ask sharon and becky a deeply personal question dr. phil here, sharon. deeply personal. i will say yes to my question.

did you ever fall for the 12 cds for a penny? >> yes, columbia >> that's why she's the personal financial reporter >> i was 14 at the time. >> they ended up winning in the end. you factor in the 8 you had to buy. they were $25. >> good luck finding me. i'm a minor. >> this is it, sharon. the scofflaw rebecca quick on the lam from columbia house >> i bought it for a while and we canceled it my mother was curious. it was a good deal >> thank you, sharon. >> take care >> i guess if you don't pay back. >> it was $19.99 >> here she is, colombia house, 555 main street. >> you can't extend credit to minors >> not minors. >> they are doing it to dogs

fido put your paw print here. >> my dog is on my mortgage. you want to read more? go to cnbc.com/invest-in-you when we come back, a new cnbc report found tesla hired a pr firm to monitor its employees on social media. this is amid a push overworkers unionizing that story next. and as we head to break, let's look at yesterday's s&p w winners and losers thinkorswim® by td ameritrade is more than a trading platform. it's an entire trading experience. with innovation that lets you customize interfaces, charts and orders to your style of trading. personalized education to expand your perspective. and a dedicated trade desk of expert-level support. that will push you to be even better.

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good morning welcome back to "squawk box. we are live from the nasdaq market site in times square. the futures on friday giving back gains we saw yesterday. dow down 58. s&p off 12 nasdaq off close to 80 this comes after significant gains yesterday. especially for the nasdaq. it was up by 2.76% a gain of 322 points

as of yesterday's close, we are actually on track for a positive week what happens today matters see if we have two positive weeks in a row or back to the down trend here is a very interesting story. elon musk has long of course had a tense relationship with labor un unions now a story out that tesla hired a pr firm to monitor employees in 2017. including the union feeds for employees. we have the tech and climate reporter with us now i read it, laura it is a creepy story, honestly. >> thank you for reading good morning >> what can you tell us in the story? how deep did they go all companies will check us out. cnbc is probably checking out what i'm doing on twitter. this is different, right >> right companies engage in social

listening. keeping tabs on the conversation on the public air waves on social media what is interesting is we went through pages of documents describing the work that tesla did withthis firm nww. what was revealing was that they were, you know, going into the facebook group of tesla employees and, you know, a place where people were discussing organizing they were focusing on organizing efforts. they were interested in the conversation around the story about a sexual harassment suit that had been filed. they were interested in employees complaints of alleged unfair labor practices focused. it shows the long running tension between elon musk and his companies and union activists. >> this is not the first time that elon musk has been in hot water. maybe this will come full circle with the twitter bid because in 2018, he got in trouble for the

national labor relations board for tweeting out something about wanting to unionize. fine, do it. give up your tesla stock options. they made him take down the tweet. now he is trying to buy twitter. this is like what is the shakespeare? what a tangled web we weave? >> right the nlrb court ruled that tesla and elon musk violated workers rights by tweeting what they saw as something that threatened workers compensation if they moved ahead with the union tesla is appealing part of the ruling still we don't have a decision yet i know elon musk did not take down that tweet. he kept it up. he considers himself a free speech advocate. that may be one reason why as far as the union drive, musk seems so confident that his

workers will not vote to form a union, that he recently invited or dared the uaw to hold a vote in three months. >> that's how he rolls lora, the story is up on cnbc.com it is an interesting story lora, i appreciate it. thank you very much. >> thank you, brian. still to come this morning, we will talk about the apparel stock that is rising as customers showed no signs of balking at higher prices we will tease this, but we gave it away with the logo. stick around. frontier sweetening its offer to acquire spirit airlines we are talking to spirit ceo ted christie in the 7:00 a.m you can listen or watch us anytime live on the cnbc app

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all right. we are watching shares of lululemon. that's what we gave away in the tease. earnings and revenue beat estimates thanks to double digit growth on line and in the men's division lulu raised outlook for the year with the supply chain issues the ceo calvin mcdonald said

consumers have not stopped buying. >> this bucks the trend of a lot of retail apparel. people were looking for fancy things to wear out on the town this is still that workout phase that tells you if you have the right stuff. if you have it, people will come >> the stretchy phase. >> yes >> and based on the national numbers we have learned during the pandemic of bodies -- >> sizes >> evolutions. >> the covid-19 bounce. >> a lot of people i sat next to the guy that owns josef abboud sales are off the charts with the weddings >> all of the things that c can canceled. >> running at record pace or on track to match the records set last year because so many things were canceled and put off. >> i went 5 for 5 in predictions last year. 5 for 5.

i'll send it out one prediction this year is a baby boom. i may be a little early with all of the weddings. baby boom in america. rh restoration hardware shares are sliding. it beat the estimates, but the full year forecast is down the company expects revenue to drop to 3% compared to estimates of the 5% increase the company cited softening demand with the russian invasion of ukraine and the disruption of the market maybe this is the beginning of the super bad economy elon musk was talking about or jamie dimon's hurricane. the shares of kohl's higher today. receiving competing takeover bids bids from sycamore partners and franchise group. the sycamore group values in the $50 a share range and franchise offered $60 a share.

pinning kohl's value at $7.5 billion. the board is expected to meet to review the bids in the coming days the stock up 7.5%. back at $44 a change below the two bids when we come back, we will talk about the impact of yesterday's opec decision and what president biden's visit to saudi arabia later this month could mean for the energy sector wti trading above $116 a barrel. "squawk box" will be right back. >> announcer: executive edge is sponsored by at&t business at&t 5g is fast, reliable and secure our best deals on every iphone - including the iphone 13 pro with 5g. that's the one with the amazing camera? yep! every business deserves it... like one's that re-opened! hi, we have an appointment. and every new business that just opened!

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welcome back do you hate all the different chargers you have to carry for all of the devices android and apple and the devices for apple apple, and multiple different chargers for apple alone the e umt u may be trying to fix that and they may be likely to clench a deal it's a real story. >> are you kidding me? priorities, people you got to be kidding. >> the eu, they don't have any other priorities the they've long been working on harmonizing to use the same plug you wouldn't have the usbc, the old blackberry one

>> you are soflving problem, lik this is a solution in search of a problem. this is hardly the biggest anything my life >> 8% inflation, turkey, 73% nation the numbers just came out. 73% nation and that region is working on harmonizing charging >> president biden is planning a visit to saudi arabia this month to rebuild relations with the oil-rich kingdom the president plans to meet with crown prince mohammed bin salman who was deemed responsible for approving the killing of jamal khashoggi. as inflation continues to tick you want to take a look at energy prices this morning

we are trading just above $116 a barrel for crude joining us is damian from goldman sachs. and you see how desperate the administration is getting in trying to find ways to bring down inflation you have president biden going to saudi arabia to try to mend fences here. will it work >> i think will perhaps prevent a spike in prices this summer. but we are faced with structural shortages and deficits in oil. this was years in the making and bringing extra barrels today, sure, helps but in the long run, it's not sustainable. av everywhere else you look, there is down size the iranian negotiation are going nowhere. in the global context of the oil market, it's not the sustainable

solution which we need, which unfortunately comes with higher prices from here >> you have to wonder why go to saudi arabia why try and mend fences there before you even try to mend fences with big oil producers in this country why not make it more appetizing for investors to give money or to say to these companies, that look, we want to make sure you are doing things to make long-term solutions, make it payoff for you to produce in these long-term projects you aren't seeing ca capex spending why not sweeten the pot here so we can get back to the point where we were the top oil producer in the world? >> there are two elements here the first one is just timing demand peaks in the summer it's already amramping up as chn comes back from lockdowns. even if you incentivize for u.s.

producers, you wouldn't get it in time for summer demand. and uae has spare capacity the second issue from the u.s. producer perspective, the sector is just becoming profitable. investors have been cautious about sanctioning more projects and capex. so policy and policy clarity can help but it was bound to happen anyway i think in the u.s. in particular the headwind we face is on services you can drill a lot of oils to produce oil, you're short on refining that's something we shouldn't overlook even if you produce all that crude, can you make into gasoline the challenges this summer go beyond what policy can help. >> damian, you're making such

important points politics aside, because let's not forget that president biden has called the saudis a pariah state a couple years ago, that was his term it has to be a semi-positive, maybe thawing the relationships if the saudis have spare capacity but politics aside, talk to us about the refining issue we've dropped by 50% our refining capacity. they can pump more oil and by the way, they are. the u.s. government expects record oil production next year. but where are you going to put it you're just going to sell it kp overseas, right? there's not enough refining capacity even if you pump it out of the ground >> between the covid shock and the demand, we haven't been able to keep it running we've seen closures around the

world, aversion to fuels you could end up to a point where bring on 2 million barrels per day, every remaining spare capacity, crude inventories are building but yet we're still facing tight markets some refineries are getting built around the world it's a process it's not going to happen by this summer >> what's that mean in terms of anybody looking at oil prices and in terms of anybody who's a consumer looking to fill the gas tank >> the key binding restraint is going to be on the end consumer price. second, as you look forward to the next several months, that constraint on the end consumer

is still binding you still have to solve reduction. when you think about a commodity market, more supply to the ground inventories that you can draw or demand elasticity. inventories at record low, you still need to resolve that last lever, which is higher prices to erode consumption. >> thanks for your time today. >> thank you >> it's supch an important poin, there's no capacity. frontier airlines sweetening its bid to buy spirit air. we're going have ted christie. nasdaq is down down more than the dow wow. a tough day for tech h.

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good morning, everybody. welcome back to "squawk box" here on cnbc we live from the nasdaq market site in times square i'm becky quick with brian

sullivan joe and andrew are off today it is friday, and we've been watching equity futures. dow futures are now off by 117 points s&p off by 22. the nasdaq down by 120 this comes off a pretty strong day of gains it was strong enough to put us back in positive territory for the week but this morning obviously we're seeing red arrows. and today is going to decide whether we're going to see two weeks of positive gains. the jobs report is out today, which is key, also the wages component to see how much wages have gone up over that period of time treasury market this morning is showing higher yields. the ten-year is at 2.919%. >> some of your key headlines happening on this friday morning. shares of tesla are down more

than 4% right now. in an e-mail, elon musk says the company needs to make a roughly 10% pause in hiring and the memo said i have a super bad feeling about the economy, end quote new york state lawmakers have passed a bill on crypto mini it is uncertain whether the governor will sign the bill into law or veto it and the social security future has improved a bit trustees pushed back on the completion date to 2035, the year they would lack funds probably the year becky and i would retire the third part is the surge in inflation and reflects a payment increase for 2023. but officials have said they now expect the cost of living

adjustment to be roughly 8%. here's the good news there are 85 million to 88 million millennials. they will be at peak working age to support us. >> to support us >> 45 million of us paying for 75 million boomers but 85 million millennials paying for us, it's good to be gen x-er now to some of the big stock movers dominick chu joining us. what are some of the big stock movers >> you're on becky's show right now. and i'm taking your spot on your show this morning. this is the summer, right, becky? >> yeah, it is >> this is vacation central for a lot of us. >> it's all good look, we all work together all the time anyway, so this works

>> they like dom better. please have dom do x >> i try to tell people on social media all the time that we actually all do get along we all like each other it's kind of interesting but to becky's point, she mentioned some of the movement in the dow lower as well as the nasdaq some of that might have to do with what's happening with apple shares which have moved lower to the tune of 2% just a quarter million of shares have traded so far some of the down side is attributed to headlines coming out that we're seeing with regard to the european union seemingly moving to a little closer to mandating a universal charging adapter to be used for all smartphones, tablet, devices, that kind of thing. for tech people tied to this, this is all tied to that usb architecture which means they will have to adjust designs going forward for

sales in europe. that 2% near drop in apple is kind of driving some of the down side and the dow futures right now. then you've got shares of micron down about, 40,000 shares in volume the memory chip, due in large part to the outsized exposure to mobile devices, pcs and other consumer electronics, so some of the head winds that face those consumer markets as well and then alaska airlines is up in the premarket right now due in part to raising its current revenue guidance, announced these up 12% to 14%, up from a prior guide of 5% to 8%. some of those headlines are what's driving a little bit of that action. we'll keep a close eye on that and send it back over to you >> you know it's national doughnuts day. and you're not here for all the

doughnuts that are at the nasdaq >> and you know because andrew is not there i might have gotten my hands on a doughnut while he's not there >> you might have had a shot maybe if you are really nice, i'll bring back some of them by inglewood cliffs on my way home. >> i already love you, becky, but i would be even more enamored if you would bring me a doughnut on the way back we are less than 90 minute's way from the may employment report as brian just mentioned, elon musk says he has a super bad feeling about the economy. earlier this week, jamie dimon warning investors to prepare for an economic hurricane. steve liesman joins us right now with the jobs report expectations and the jobs report is backward looking, but there are pretty important data points that people will be digging through this report for, steve >> exactly, becky. these days, every economic

report is an inflation report. and that's true for the jobs number at 8:30 sure, investors care about how many americans are employed. but in such a tight labor market, the primary focus is going to be about how tight the labor market is, how much wages are contributing to inflation. wall street looking for 228,000 jobs to be created, a step down from last month's 428. you can't know if the number's falling because there aren't enough workers or the economy is showing. the average hourly wages seen rising 0.4%. that would keep the year-over-year gains at a robust 5% an easing of wage gain would give fed officials a bit of comfort that the u.s. is not in the midst of a wage-price spiral it also would like to see an increase in the participation rate after a few months of modest

improvement, the population available to work ticked down. they see a goods supply problem and labor problem. the participation rate remains 1.2% below where it was before the pandemic that's about 2 million people. more jobs and higher pay they're not necessarily at odds with lower inflation, as long as they're accompanied by workers coming into the workforce. a modest gain in pay rolls with high participation rate. without that, the labor market is too tight and the inflation fight has a lot further to go. >> we spoke earlier this week with janet yellen, and she told us we're at full employment. if that's the case and you're still talking about the participation rate being about 2 million less than where we were before the pandemic, that's not great news in terms of thinking that the job market is loosening

up and you're not going to see wage increases. >> no, i gave you the goldilocks scenario, i didn't say i necessarily believe in it. the story here is that we don't know, and i'm going to report on this next week from our workforce survey, why people have necessarily left and what it might take to bring them back that's really the key here if we can bring some of the people on the sidelines back in. >> i know what will bring them back doughnuts. doughnuts. this is going to bring them back it's doughnut day. >> you know, that could not appear as an answer in our survey, becky, but that's our fault for not making that one of the options. so i will get with our pollsters and see if the next time we come around doughnuts can be part of it look at that you guys have gun cuncovered th there. >> this is for you the fruity pebble doughnut. >> from doughnut pub >> don't do that don't do that.

ve i have a doughnut problem, and i'm not doing the doughnuts anymore. >> when you're in the office, you have doughnuts >> if i'm in the left-most lane of a four-lane highway i do a direct left turn >> you call it the jersey slide. >> the jersey slide. far left lane. >> you don't care who's there. you don't put your signal on, and you're going 85 miles per hour and texting, that's the jersey slide >> if you come back to the office you get doughnuts >> you get doughnuts steve is there a scenario where the number's terrible and the market rallies, because it takes the fed out at all not goldilocks, but i guess we'll call it the three bears scenario >> i don't think it takes the fed out. you know, the market went through this just very strange phase of this september pause idea i think brainard set us straight

i was never on board september pause idea the question for september is, does the fed do 25 or 50 two 50s look to be pretty locked in for the summer. then do they bring it down a notch and start doing 25s. i think the fed has a place to go, speaking of highways, and it's going to get there pretty much as rapidly as it can, and i think we have a federate outlook ch chart. you can see more or less the market sees a year from now, we're going to be up above 3%. that number, that july 23 number, that's been fairly constant in the three or say 290 at the bottom, 340 is the top. but centered around 320 is the market, which is where the market is very volatile, has been trading i don't see the fed coming out i think there's, it has a job to do a place to be. and very little's going to keep it from being there.

the question becomes for next year and later this year whether or not it slows down >> well, that number is out in just about two, an hour and 20 minutes. steve liesman, we'll see you back then. thank you very much. all right, coming up, if you have been hit by the cap on state and local tax deductions ie, you live in new york, massachusetts, a big interview coming up with josh gottheimer who's trying to do something about that nasdaq futures not looking good, down 142 wereacwre teth a bk itafr is rit. s s .

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. welcome back, everybody. new jersey congressman josh gottheimer writing a new letter to the irs, he's pushing to block a trump-era rule that could be used as a work around that cap limits state and local taxes to $10,000 he is the co-chair of both the bipartisan problem solvers and salt caucuses. it's good to see you you are dogged you have not let go of this.

you have continued to chase after it so far not to much effect. why do you think this time might be different with the irs. first of all, explain what this would mean for salt limbs,its, d why you think it would be more successful than when it was tried under the trump irs? >> thanks for having me. we believe for decades, the irs believed charitable deductions that were used in 30-plus states, in louisiana, in a lot of the southern states for paying paroquial school tuitions, arizona used it for foster care funding. and what would happen is an individual could make a contribution to a charitable fund in a town , in a community and that would therefore be used as a deduction on their taxes. so instead of getting a

deduction for salt, for paying your property taxes, you would make a contribution to a charitable fund in your town they would use that as deduction that could go toward school, helping pay for law enforcement, and you'd get that deduction as you would for any charity. this went on for decades and the last administration out of nowhere in 2019, the irs and treasury department decided to end it they created a new rule which was not matching a legislative intent we're asking the secretary of the treasury and irs today to please repeal that random rule that was imposed in the last administration and allow communities to reinstate the charitable tax deduction for people to make these contributions to towns and use as deductions, obviously to provide relief after the 2017 tax bill pass the salt deduction at $10,000

>> is that the gap that you're talking about? >> this literally would set up funds, lines in communities where you could make a contribution to law enforcement, to the schools, to a series of different, and we worked, we looked at just how they've been doing this for decades in 30-plus states and you literally make a contribution to that line item and get a charitable deduction and reduce what you'd have to pay on the property tax line our strategy here is no soft pile unturned. we got legislation passed at the end of last year, sitting in the senate now we've got to get the senate to act in the meantime, we should look for every single way to get people tax relief and tax cuts >> listen, you're in new jersey. you represent the district up near cnbc's headquarters >> my district

>> i was looking at a house on realtor.com. three bedrooms, two and a half bath this is such an issue that people outside of the northeast, maybe in maryland, they don't understand you bring it up, like what are you talkingabout you're rich. hey, this is not a rich person's tax. they're using strategies that you're talking about, congressman. this is like an accountant and teacher, because they choose to live in new jersey have $35,000 in state and property taxes. they're not living like millionaires, and now they can't deduct 25,000 of that off their federal taxes, and everyone else in america is laughing at us meanwhile we have potholes that a giraffe would fall in and need a ladder to crawl out of >> you and i need to go on the road together. the median tax is $13,500. this is a middle class issue

it's cops and teachers, firefighters and electricians. it really has a huge impact and this is a way to get people some tax relief again, it went on for four decades. we're asking them to reinstate what was used forever and give people tax relief here >> let me play devil's advocate on this. the gop said wait a second you want to deal with it, deal with the issue of too much spending in places hike bergen county, in places like connecticut, places like new york city. you all are spending all this money, why should you get a deduction for it, just because are you building up the infrastructure for these things. this is why the gop passed it. this is going to sunset in 2026 unless the republicans come back in and say forget it, we're extending it but how do you explain it to the red states we don't get discounts for

things like that >> obviously, $10,000 covers their freight. >> they will say it's because we don't have the big government infrastructure to pay for. >> they also have some of the worst schools in the country their law enforcement doesn't get paid anything. and they don't invest, they don't invest back into their infrastructure at all. >> so your message back to them is spend up and deduct it, too >> our infrastructure is older we have different climate issues, so that affects our infrastructure costs it's a higher cost area. we have a lot of services that we provide to families great schools, great law enforcement. >> no argument i live here and benefit from that and i understand the need for taxes, but i do get the back and forth when the red states say hey, we've been more fiscally conservative, we haven't spent for those things i know the other side of the argument, too. we end up spending far more to

the federal covffers. i get that part of it, too you take all this money and end up putting it in the coffers and send it back disproportionately, and it turns into a real mess. >> our taxes would rightly go down here as they should if louisiana didn't take 40% of r budget from us if they want to take no more than they put in, this would actually quickly change in a minute but that's part of the challenge here you have all these moocher states that take far more than they turn in so they get a huge portion of their budget paid for by us, by what we send to them, then they get angry the a us for asking for relief it's double taxation >> and it hurts the value of homes. i know when this was passed that i called it trump's blue state pay back and you're democrat, so take this whatever, congressman

democrats have been screaming about fair share and rich aren't doing their fair share so they said okay. you want to pay your fair share. do it in these states. i'm raising my children here as well it's the number one state that people are leaving, congressman. you know that. >> that's a huge issue i'm fighting against, we need affordability and lower taxes. they make that argument. they like to stick it to us. i get it all i keep saying to them is fine don't take a nickel more for your state than you put in the federal kitty. if they do that, suddenly, the equation changes they don't like to take from others, but in the meantime, they keep using what we pay into the taxes to line their pockets to pay their budgets >> this is really complicated, and i understand that you know all sides of this issue. you've talked and dealt with all sides of this. we the united states of america.

we do stick together for reasons, obviously, there's been more stress put on those, those ties that bind us in recent years. i just wonder, politically, and realistically, what actually happens. because, again, we're down to the countdown where all of the stuff sunsets anyway this was a ten-year agreement that was put place. it sunsets in 2026 and the salt limits would just go away. and it comes down to who's in control of congress at that point. although i will say there are plenty of democrats on your side of the aisle that agree with you, that think this is a give away to the far left >> wait a second, it's a middle class issue. this is a cop and teacher. but to the other point you're making, which i think is very important. we can't right now get enough republicans in the senate to pass this. that's been our challenge. we got it out of the house and negotiated that. but the challenge of course is

getting this out of the senate so in the meantime, the best answer is for the treasury department and irs to reinstate what they allowed for decades, what they allowed a lot of the southern states to do to pay parochial schools and playgrounds to have taxpayers pay charitable contributions to their communities. i want to get lower taxes, tax relief and get a little benefit here that's what we're fighting for we're asking today, we're going to the interested department and irs and saying please reimpose the rule you allowed forever and let's finally repeal what was randomly imposed under the last administration as a punitive hit to states like ours. congressman, thank u we appr appreciate you, and let us know how it goes.

frontier and jetblue making bids for spirit. check out oil prices this morning. the president may be heading to the middle east to speak with crown prince mohammed bin salman sometime later this month. the wti crude is at 116.55 if it happens, could opec pump more? we'll see. time now for today's aflac question what philadelphia-based company is known as america's oldest ice cream company? e answer when cnbc "squawk box" continues the aflac pre-pain show. aflac! paul is about to suffer a shelf-inflicted injury. luckily, aflac will help cover his unexpected medical bills. aflac! maybe you could use the money to buy a step stool. i have a step stool. so why are you climbing a shelf?

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now the answer to today's aflac trivia question. what fill-based company is known as the oldest ice cream company? the answer, bassetts ice cream, established in 1861. spirit airline ceo on the all-out industry fight for his

company. frontier and jetblue making big plays. we'll tell you about the latest twist in this saga plus the may jobs report out in an hour's time. we'll bring you analysis as soon as the numbers hit the futures ahead of those numbers under a little pressure. dow futures down s&p off by 25. u ay tuned yoare watching "squawk box," and this is cnbc if you used shipgo

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all right, welcome back. frontier airlines sweetening the pot for spirit airlines. phil lebeau joins us >> let's bring in ted christie joining us from the company's headquarters in miramar, florida. we reported earlier today and it's been out there that last night you guys essentially agreed to an amended merger agreement with frontier airlines where frontier increases the reverse breakup fee $250 million. from your perspective, is that enough is that enough of a boost in order to convince your shareholders who still need to vote on this deal that frontier has skin in the game, so to

speak? >> good morning, phil. thanks for having me on again. yeah, we do. you know, we've been listening to what we heard from iss in their report, and speaking with some of our shareholders, and we believe that the implementization of this reverse termination fee with the frontier deal will satisfy all those concerns it does require us to restructure the deal because the regulatory risk was shared and now we shift the burden to them and put in place the reverse termination fee, but we believe this will get it done. >> can you tell us what percentage of your shareholders have voted they have until next friday to vote but percentage wise, how many have said we've made up our mind on this deal >> it's still very small, insignificant numbers to really talk about most of the people wait till the very end, i think they want to

digest all the information so, you know, we're looking forward to getting this information out. no doubt you also saw the report out in favor so starting to gain some momentum there, and we'll continue the conversations throughout the course of the next week >> has there been any sku discussion, and you mentioned grass lewis, that this is a favorable deal between spirit and frontier, but iss comes out and says look, we think this deal should be rejected by the spirit shareholders, that the frontier deal is not good enough has there been any talk between you and frontier about frontier doing more than just reverse breakup fee in. >> in the iss report, they were pretty clear about the lack of the reverse termination fee, which is what we're here to

address, and i think we've done that so we're in communications with iss. and we're hopeful that will get them to address the recommendation >> you heard that essentially you guys have not come to the table. you talked initially, but after you said "no thank you", that there have been no discussions since. is that accurate have there been no discussions at all is it that you have decided, frontier, that's enough? >> i don't think that's accurate at all over the course of the month and a half or so that we were in discussions with jetblue, we made it clear the concerns we had about regulatory approval and we made a number of suggestions to them about what they could do to improve the regulatory story including the

deal alliance american and they simply said no to all those things, and we tried to convince them and they haven't moved. as of this point, the frontier deal clearly is superior we have structured it with the reverse termination fee to address some o address some of the keaconcerns and now we move to the vote next friday >> next friday that's when the spirit shareholders will be voting on the proposed merger or the agreed-to merger between spirit and frontier guys, back to you. >> countdown is on got to wonder if that will be the end of the saga one way or the other. something tells me maybe not

phil, thank u great to see you >> you bet when we come back, former dallas fed president richard fisher will join us ahead of the outsn eport to give us his thgh othe economy, the risk of recession and much more. "squawk box" will be right back. ♪ ♪ opportunity is using data to create a competitive advantage. ♪ ♪ it's raising capital that helps companies change the world. it's making complicated financial concepts seem simple. opportunity is making the dream of home ownership a reality... ♪ ♪ ...writing new rules and redefining the game... ...and driving the world forward to a greener energy future. (applause) ♪ ♪

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all right, welcome back to "squawk box," everybody. here we go futures under some pressure still, we about 50 minutes away from the big number of the morning, the jobs report for the month. right now dow futures off by about 143 points, the s&p off by 38 and the nasdaq by 137 >> there is of course mounting pressure on the fed on inflation. it's an understatement and questions about the american economy. just this week we've heard g predictions. elon musk telling the car maker that they need to reduce staff by 10% and pause hiring worldwide. in it, musk also says i have a super bad feeling about the economy. of course earlier this week, jp morgan ceo jamie dimon warning investors of a quote economic

hurricane. we don't know if it's a minor one or super storm sandy, you better brace yourself. joining us, senior adviser at barclay's, good to chat with you again. do you think we're in for an economic hurricane is a recession inevitable? >> i do think jamie's always thoughtful, and i think one needs to at least prepare for the kind of forces that seem to be bearing down upon us. the land war in europe is obviously disrupting the entire commodities spectrum and particularly on energy side. and then we have the fed who just yesterday again, thanks to lael brainard reemphasized the fact that they're going to move until they bring this inflation bracket under control. so anything that's interest rate sensitive is going to feel like winds are pretty brisk, and i would suggest that they board up

their windows just in case because it may go further than what the market is currently discounting. that's what jamie is referring to i don't view elon musk as a sage when forecasting is concerned. >> i guess what's confusing, richard, probably to a lot of our viewers is they hear ceos saying things are likely to get bad. they have companies, some of them cutting sales forecast, and yet we keep talking about raising rates because of inflation, and i guarantee a lot of people watching and listening right now don't believe it they're like, no way the fed has never gone tight, they're going to go back dovish. they're never going to let the markets collapse >> it's not so much a market collapse as it is rediscovering price discovery. when money is free, everything looks good, and they went on this binge for too long. powell's been reappointed.

i know the man's character i haven't talked about policy with him for some time, because we're not allowed to talk policy but he doesn't want to be arthur burns. and now he's determined he's been reappointed, with significant support on either side of the aisle. he beat the president on capitol hill i don't think the president really wanted to reappoint him, but that's a fact. and i think he will do what's required we'll see what the numbers do when they come out, but the number of unemployment claims are historically low we're seeing the restoration, the consumer seems to be weakening but still fairly strong we have more people looking for workers than workers looking for jobs there's leeway here. as far as the markets are concerned, the markets have gotten lazy. free money allows you to discount your cash flow to

infinity that's over. and now i think a price will be paid >> i'm sorry n nobody wants to be arthur burns, but nobody wants to be volker either. are those his only two choices here >> no. >> we grateful for what volker did, but it was painful. >> volker had to do what he did because things were out of control. they're not out of control, they need to be tempered down and you don't want to be in either position if you're are cr or in the committee. the horse got out of the barn, and now they have to bring it back and do so convincingly. part of what they're doing here, if you look at what ms. brainard said yesterday or what ms.

semest messter said yesterday you signal by what you say, because what you say has power when you're with the federal reserve. i think it's a combination of two. one is action, delivering on those actions, making clear what you're willing to do we've never seen this before where you announce a couple of basis 50 points ahead of time. or the chairman saying here's what we're going to do at the next meeting they're giving you as much advanced notice as possible and saying what they're saying, they're reaffirming that they mean it about inflation. so it may be by having signaled this strong a policy that they may not have to follow through as much if indeed the market the and economy react to their words. so it's a two-pronged -- go ahead. >> you don't want to relitigate the past because we are where we are, richard and the house is on fire and

we're talking about how to put it out, and i get that you're in texas, and i bring that up for a reason i don't want to get into politics of masks or lockdowns, but here's what i think. if the federal reserve had taken a field trip to half the country besides d.c., new york, chicago, that pretty much didn't shut down or didn't shut down for long they would have realized that the stimulus that they thought they were doing was not needed in many places. is that a fair statement in i think sort of saw the whole world from a d.c. perspective when half the country didn't l lockdown or locked down for a couple weeks >> we're large economy we have almost 13 million workers and 30 million population base. and we saw the effects so and by the way, in april,

according to the dallas fed, employment growth in texas, in the federal reserve district, 11 federal reserve district which is 99% texas, was 5.7% so it's still continuing if you look at the different states, you cannot have a recession, i'll just point it out, unless you get many states reporting negative numbers we're not seeing that yet. so it continues. we have a wage-price spiral. the fed could have noticed this, although i'm sure they were getting reports from regional bank, and yes, i believe the decision model they took, which is the horse out of the barn model, is the wrong model. they now correcting for that they realize that. and they're listening to the micro data because many micros make a macro. and it's still growing like gang busters. >> so true, and so regional, having traveled during the

pandemic, and you sighee the way people are living, and there's people at restaurants in 2020, no politics on it, just the way it was richard fisher, thank you very much appreciate it. >> thank you when we come back, nasdaq futures under pressure this morning. check out the faang stocks apple is the biggest decliner. down 2.3%. and netflix down by 1.5% when we come back we'll focus on these names. stick around

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netflix shares under pressure again this morning. they had gotten a boost yesterday on an analyst upgrade, joining us is engine media executive and gene munster, and what's the story at this point with netflix what was said last night, what was not said how do you walk away from this, and why do you think the stock's down this morning, gene? >> well, becky, yesterday the shareholder meeting was short and sweet, 15 minutes, no q&a. they surprisingly passed some better corporate governance and eliminated some super majority voting rights. what was most important was what wasn't said. and they did not preannounce

investors are nervous going into any corporate dialog, given what we've seen from snapchat and the broader environment. as a starting point, not much yesterday, but i would highlight the elephant is still in the room when it comes to netflix. we are investors in netflix, and we're growing progressively nervous. it is clear netflix is not growing their subs they ultimately need to get this ad model to work for the stock to work. and that's a big unknown, especially in an environment where ad supported models are being tested so when you put it together, becky, i lieft the shareholder meeting with more questions than answers. >> this is pretty unusual for somebody to come on and say i'm a shareholder and i have serious concerns rather than sell, you're talking

about those concerns you're willing to hang on for now? >> every investor has levels of anxieties. simply that my anxiety is higher here we bought it on the second big step down here and i think what has become more clear to us is the cash flow that needs to be generated from this ad-supported model. so to answer your question is we still own it there's a big difference between being nervous and actually selling it but i just want to put the conversation into context, is this is, this is a higher risk, higher reward type of investment >> what would actually make you sell it? what would have you kind of say okay, forget it, i can't hold out anymore and still be this nervous. >> we want to see the ad model are they going to come out with an a basic model the threshold we're shooting for

is six dollars. so to answer your question, they've got to monetize at that of rate. they had about >> let's bring in tom rogers joining the conversation tom, you've been in media, nbc and many others for years. do you believe netflix' viewer

numbers? >> do i believe their viewer numbers? absolutely. i think that what's going on with the stock that people left for dead, but looks like it's bounced back to life, stranger things have happened with the stock. but i think what happened here is stranger things i mean, it's introduced stranger things season four to an enormous number, 287 million viewing hours. and that, that answers a key question that was coming out of last earnings is netflix spending all this money without getting value. and that is a question they were able to answer here. >> those numbers, tom, 287 million, and i was reading maybe they released it in a two-part, they got double the viewing hours and sort of double counted. it's just a massive number >> it's a massive number, but

this is what netflix does. and i think the other thing that has gone on since last earnings is that the inflation-recession scare which we're all preparing for, what's that going to hit? it's going to hit the legacy bundle really hard at $100 a month. that's where people are going to pair back, and it's going to hit the legacy advertising, and while netflix introducing an advertising-supported service at this point is not the greatest time in the world to do it, that, too is going to eat away at the legacy guide. so what's going to be the beneficiary of people pulling back on the bundle it's going to be streaming, and netflix being a leading streamer, i think will benefit from that. >> and we have seen stranger things happen. have a great day coming up, the big report of the morning, the may jobs number, what to expect reaction, all-star panel stock futures down 184 we're back right after this.

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good morning, everybody. welcome back to "squawk box" here on cnbc we are live from the nasdaq market site in times square.

i'm becky quick along with brian sullivan joe and andrew are off today we've been watching the u.s. equity futures, getting ready for that big jobs report, and can you see right now things have taken a turn for the worse. the s&p down by 32, the nasdaq down by 153. so it had be a battle to determine whether this week goes up or goes down. treasury yields this morning yielding a little higher, the ten-year ticked below. spirit airlines. frontier saying it will pay spirit a $250 million reverse breakup fee. they are hoping to convince stockholders to approve the deal they think the nine-figure incentive is enough to convince

spirit investors that frontier has real skin in the game. >> we believe that the immen station of this reverse termination fee with the frontier deal will satisfy all those concerns it does require us to restructure that agreement with frontier, because the reason we didn't have it initially was the regulatory risk was shared so now we actually shift the burden to them and put in place the reverse termination fee, but we believe that this will get it done >> spirit shareholders are expected to vote on the deal with frontier next week. becky? >> another day, another gloomy economic outlook from a top business leader. j.p. morgan ceo jamie dimon compared the challenge the to a hurricane. now it's elon musk's turn. musk says he has a super bad feeling about the economy and says tesla needs to cut its workforce by about 10%

talked about pausing all hiring worldwide. this was sent just a couple days after musk pressed his employees to return to their in-person offices or look for work elsewhere. if you're looking for a place to make the 10% cuts, it's for anybody not coming in. it looks hike thlike the econom pretty good, but you have executives who see the clouds on the horizon. let's start with dom incchu. >> it's dragging the market down let's start with the tesla trade on the hieels of the headline deteriorating view of the economy. a big chunk in the futures can be attributed to the tesla market we're down about 5% right now in the premarket trade for tesla shares also at play are shares of apple, just about at premarket

lows as well a drag on the major gindeces. last hour we mentioned some of the headlines around the european union perhaps programming in its campaign to mandate universal charging ports and adapters for key consumer electronics devices. it is also worth noting and mentioning that analysts at morgan stanley have an overweight on apple and kept their 195 price target but they did point to slowing services revenue growth, specifically tied to the app store which could apply more down side to previous estimates for growth we also mentioned alaska airlines upping their current quarter revenue guidance in the last hour. this hour we have american airlines doing the same thing. american now cease sees current

growth, they previously said it was going to be a 6% to 8% gain. that was largely in part to robust travel demand down about 1% premarket. and we're going to end on the merger news. turning point therapeutics being bought by bristol myers, $4.1 billion that had help bolster bristol myers cancer treatment bristol myers down about .75%. >> tptx. when's the last time my man you saw a deal premium that was double the existing stock price? >> and i will say this if you do see those types of premiums, oftentimes they are in health specifically and biopharma and biotechnology, because oftentimes it is larger players looking to bolster and

put that pipeline in place for higher prospect areas for cancer treatment, other drug treatments as well. >> looking for genetic markers for cancer, san diego-based company. if you own turning point therapeutics this morning, take the family to sizlzler, let them get whatever they want >> bristol myers is doing this because their lead asset, it's expected to be approved for treatment for lung cancer. they're looking for approval of that in the second half of 2023. when you have a big drug like that, that's the only way to do it you can't do this yourself >> the ceo of bristol myers, i know him a little bit he came up to the oncology division >> he knows what he sees >> they're clearly focussed on cancer and oncology treatments

>> bristol-myers shares have been up 20.4% over the same time period so they've got some currency to put to work there. >> big premium to your point, the stock has never been that high if you go above the chart on the skr screen, you go to 115. but wow, tptx double >> i think the bristol-myers ceo will be on later today >> i believe that show is called "power lunch." i know him i i like him joining us now is sarah mallee welcome to the program is 100% of your clients' money in turning point because if it is, congratulations. outside of that, where would you advise clients to put their money right now. >> we actually like growth

strikes. demand with the economy. yields starting to settle. and we think given the, aggressive rate hikes and plateauing or cooling inflation could be good for growth stocks which tend to be less reliant. >> we heard jamie dimon talking about the economic hurricane elon musk called the economy super bad. that's his term, not mine. are you in that camp it sounds like a lot of big names are getting nervous >> "super bad"'s also a good movie. >> you're right. >> we did see payroll, 235,000 jobs created this could be good, though the fed is looking for some signs of economic declines in order to take the edge off of inflation.

there are three things we're watching for when it comes to the numbers. demand destruction supply we expect to pick up in labor force participation, and then average hourly earning we think given some of these hiring freezes, we're at .1% >> is this a so bad it's good scenario if the number comes in terrible, negative, average hourly earnings decrease, does that mean an equity market rally because the fed is going to have to backtrack perhaps >> you want a goldilocks type of scenario, and the markets are preparing for the worst and hoping for the best. if the number's two negative we have too much of a checkeconomic climb. you really want not too hot and not too cold a more moderate number could be a hit for the market but if we go into negative,

we're going to talk about gdp and recession. they wouldn't love a too hot number because then they have to keep continuously increasing interest rates, and that's going to be a headwind for the equity market >> you have all kinds of asset classes. are you starting to worry at all or worried at all about credit in any way high yield there's certain parts of the credit market, they may not be sick, but they got to sneeze at this point >> high interest rates are a headwind for fixed income, but when you look at the total return, let's take a look at high-yield immunis. it's priced in a lot of great hikes. we don't think it increases at the rate that it's been going up year-to-date so we're actually thinking that's one of the best areas can you invest in right now. the risk reward becomes attractive equity's a little different. you have the s&p almost at 4200

here, and until inflation breaks one way or another, we think it's in a trading range. >> when's the last time we talked about municipal bonds? the government is gouging taxpayers, i think, because the profit margins on taxes, it's going to be record tax receipt this is year saira, i think california scoul have a $100 billion surplus. tax receipts are doing so well >> that is exactly the key with muni bonds now you're getting these yields, partic particularly the high-yield.

>> the greedy states, the greedy federal government, becky, taking in all that tax money, send it back >> paying taxes is a privilege >> a forced privilege. >> you know what today is? >> national doughnut day. >> national toe doughnut day it is >> you know what else it is? >> friday. >> it is friday. the birthday of mclovin in "super bad." >> no way. >> today is -- >> wait a minute the guy in the movie who had the fake id, today was his birthday on the id? >> this is what i'm told by the control room >> can we randomly mention, elon musk >> you got to wonder if there's something going on there you know what else today is? >> national blow your mind day >> no the national jobs report

that number is at the bottom of the hour we will have the number, the news, the instant analysis but next, green light. california, robo taxis can take to the streets and serve paying customers. we'll give you the latest when "squawk box" comes right back.

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welcome back to "squawk box" on a friday. futures not looking so hot nasdaq down. dow down 150 tech could bear the brunt today as well. ten-year yield at 2.91%. everybody's waiting for this jobs number. >> they don't have long to wait, less than 14 minutes in the meantime, a milestone in the race to deploy autonomous taxis on the roads phil laebeau joins us >> are you ready for robo taxis? in a couple weeks we will see crews without anybody behind the wheel. this was approved late yesterday

by rg regulators in california cruise is the ride hailer. they expect those hours to expand the price to be determined here is the coo of cruise. >> the pricing basically, will be very comparable and competitive with the current ride hail pricing model that everybody's familiar with. so we'll begin rolling out the fared rides in the next couple week, and it's really just to ensure the smoothest customer experience possible as we start to charge fares. >> so what's next for cruise within a couple weeks we will likely see the beginning of these driverless, ride-hailing cars that are going to be zipping around and picking up you or i or whoever, becky, if we pay the price in order to go to certain parts of san francisco.

and then eventually, gm is going to be building a vehicle, a dedicated vehicle just for cruise almost looks like a shuttle. there's no driver wheel. it is not what you see right now. it's going to be different and this is the beginning of the expansion for cruise, and also the beginning of robo taxis, out on the road for paying customers. >> i have so many questions on this, phil first of all, is this a municipality by municipality situation where they have to get approval they don't have it for all of san francisco right now? so the city has to say okay, can you do their how quickly do you think cities will engage with that, and why is it only part of the city? >> so, becky, the agreement was with the california public utilities kmirks the final regulator that needed to sign off on this. so it made the agreement this was the initial application from cruise. they've been testing in this area for some time but not with paying customers. and they believe that as they have more confidence in the

system, its geofenced right now in terms of the paying customers, they will expand to other parts of san francisco and eventually, you'll likely see it in other municipalities. how quickly? that depends on how much confidence, not only cruise has, but regulators have that yeah, this works it's a safe and effect ever way of transporting people >> i have so many questions. we will continue to discuss this >> i understand. >> thanks for being with us today. >> you bit . >> coming up, the latest jobs number 320,000 expected unemployment rate, 3.5%. the previous 428 maybe the most important part, expected to rise 0.4%. they're more important than the 'lta autbers wel lkbo it, fight about it, we'll hug, we'll cry it will be great

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okay here we go it's the big day, maybe not what you were thinking. it's national doughnut day, and the nasdaq is celebrating. we've got doughnuts. this is an incredible display. but somebody touched all those things and put them up there and

somebody's going to sneeze on them >> i did not touch them, i licked them. >> it's not just national doughnuts day. it is the may jobs report day, and that number is just a few minutes away we have our all-star panel waiting for the big number there they are getting their game on getting ready to go. the countdown is on. we're going totalk all about this, the expectations for it. we will bring you the number, the instant market reaction. as you point out, futures have been under pressure this morning. today is the last day of the week we will determine which way we are headed >> can we put that back up, the five box back up because i have a question. i'm kidding. kumar in the uerpp right hand square for $400. >> ding, ding, ding. you'll get the opportunity to do that when "squawk box" comes right back

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welcome back to "squawk box" here on cnbc ahead of the number, let's bring in our panel liz young from sofi. sh sheila richardson from adp, and

our own steve liesman and rick santelli i would like to go around the horn and hear what you're anticipating for this. we're thinking up about $328,000 does that sound high or low? or are there other components you're more concerned about? >> i think that sounds a little bit high, even though that estimate has come down from yesterday. i'm going to go 275 to 290 i think that's a good thing. we don't want the jobs market to stay as hot as it has been because it gives the fed leeway to keep going hawkish. so i think we see a slight miss today, it's not a bad thing. this is a process, not a shock and i think we should see leveling off before we see a break in the jobs. >> i am in line with that view i think we're going to see a slow down from the pace we saw the previous month it's not because of lack of

demand it's really a supply side hit, the competition for workers is fierce, and that's capping some growth >> sri, you want to weigh in on this >> i don't want to quibble on the number i go with the 300, but that is not at all important figure, the important figure as brian said earlier in the program is going to be the rate of wage increase. inflation is going to stay high. what it means from the jobs numbers is that the neutral rate of interest is somewhere near 4%, not the 2.35%. what that means is they have to keep hiking lot beyond lael brainard's reference to september, and that means the unemployment rate, rate increase, all will be affected in the months to come. that will be the big message coming out today, becky. >> what would be a number would

you be anticipating in hourly wage increase. >> somewhere in the range of 5.3, 5.4%. 0.4 on a monthly basis, both of which would be far from giving me any comfort, becky. and that would mean that the ten-year treasury rate also keep rising and go higher >> rick, real quickly, before you have to start looking for the numbers, what are you expecting? >> 390,000 on jobs, i don't think we're going to get 13 in a row, 400,000 or higher, the jobs, jobs, jobs number is very important, but i do understand the wage component side. the year-over-year earnings have been over 5% every month this year i think keep it simple as long as we continue that trend, i think we'll be okay >> liz, really quickly, what's your expectation for market

reaction if the wages come in, in line to a little hotter how do you think the market would react? >> i think if the jobs number comes in a little weaker the market will like it. it will be moving in the direction that some of the other indicators have. we're seeing a little leveling off. so we don't want to continue to see all of this rise but i think it would be a good reaction on a rise >> rick's going to stick his neck out at 109. but we'll see. rick's got the numbers >> holy cow, oh, my god! guess what it is, 390,000, where have i heard that number before? private pay rolls, 333,000 a cumulative two months of revision to take away 22,000 manufacturing pay rolls, about half of what's expected at 18,000 and just to put a face on it, 390,000 is a pretty good number.

on the unemployment rate, 3.6. it holds at 3.6. and we all understand that these numbers go back, what, 53 years to the late 1960s, average earnings a little miss, up .3. however, on the year over year side it is up 5.2. 5.2 equals february, and it is five months in a row that are all above 5% that's a nice run on workweek. 34.6 holding quite steady and the participation rate, drum roll finally we move up a tenth to 62.3 after 62.2. do remember 62.4 is where we were in february pre-covid the underemployment rate, known as u-6 on the inside game. that moved up one contenth. the high water mark was march.

i think it's a pretty good report we could debate the month over month earnings on the interest rate side, interest rates are up a bit. that's a good sign 294 on ten-year, sothey're looking at the number in a positive way real quickly, boon yields are up 30 basis point the world's interest rates are moving up. gang, back to you. >> rick, first of all, ding, ding, ding, ding, ding you hit it on the nose with that one. le let's show the control room the ten-year yield it's a pretty good number. 2.941% what's the range because if you've been looking over the last couple weeks, we got off 2.7, north of 3% we'd been looking at. what's your feeling about what this number means, rick? >> you know, in my opinion,

interest rates have yet to move to their highest levels. obviously the current high watermark on an interday basis is 320, the feeling is the amount of work we're going to do from here under 275 is going to be on the light side i suspect between 390 and 210 is where most of the work gets done and as we approach the next fed meeting which isn't too far away i think you're going to see us potentially test the high watermark around the 320 level >> let's talk about the stock market reaction. you're talking about the dow down by 110 point, an improvement from where we before the numbers came out the market seems to like what we've seen with some of these things this is pretty much a good number it's not too hot, not too cold goldilocks, maybe right on the head >> yeah, i would have preferred to see a slight miss, but you're right. it's not too hot, and it does

give the market some flexibility okay maybe we're not going into the terrible growth scare that we thought we were i would caution people that the labor market is one of the last things to respond. so i still think we're going to see a leveling off here. maybe we haven't seen it yet here in may, but i still think we're going to see a little leveling off and softening through the year >> let's fbring in steve liesman the good, the bad and the ugly for the most part, we haven't seen anything that looks awful this is nothing that was a huge surprise, i would think. >> no. goldilocks, what it would look like, this is pretty close you know, 390,000 people employed, but we brought in 300,000 people into the workforce. that's the number.

at least those numbers being more or less in line so to speak. good distribution it looks like to me. factory jobs up 18,000 construction jobs, and then of course you had the service sector really power ahead with job growth but we don't have attenuation in wages yet. it still seems like there's workers out there for people to hire feel pretty good about this, i don't think this breaks. either way it doesn't make thing worse. doesn't make things better this way bringing people in, putting to work, at least it won't get worse. >> and you said this was a supply issue it's not that we don't have jobs that need to be filled it's that we don't have enough workers to fill them maybe the goodn news is the participation rate >> it's ticked around up and

down still remaining about a percentage point lower than before the pandemic. it is definitely a place to watch. i'm encouraged by the solid number i think it's a good thing. i think it's unequivocally good. especially when you look at average hourly earnings that were so contained. they didn't explode despite the solid hiring the only wish list for me right now is that labor force participation rate, that it continues to improve, that we get more people in the economy on a percentage basis, back into the labor market that's going to drive going forward. some controlling wages as well more people, less competition for workers and wages hopefully can stay within a range that doesn't drive up inflation any further.

>> you know, vsri, there are so many numbers that stuck out to me 1.8 million people said they were unable to work last month because their employer closed or lost business because of the pandemic this is incredible and it goes to the inflation story, i think you are in california i know you live in l.a 7 buck gas, what percentage of people remote worked in may? >> i would say 18% >> 7.4 meaning people are on the road, sri, it goes to the energy inflation story to me. that people are coming back to the office in a big way. that's going to jack up energy prices >> what you said takes me to a very, very important point which the fed talks about consumptio expenditure inflation number which is much lower, which makes no sense the social security number is adjusted by the tpi. and the consumer price index is

still at a much higher level and the reason is, consumer price index has food included in it the fed doesn't want to include it so they can show a much lower inflation rate you and i, brian, we live bit consumer index it's going stay high on the interest rate, i would go with what rick said a couple minutes ago. when you go to the next two or three rate increases through september, you're still finding out that after another 150 basis point increase to september, we are still below the neutral grade of interest. that's when the market will take flight i don't have the comfort that nila has it's not a politically acceptable scenario. >> so what's the outcome, sri?

>> the outcome is a lot more pressure on equities maybe delayed. to the extent they don't want to have it, becky before the november elections postpone it to 2023. and this is going to be a long, drawn-out saga so don't take comfort from today's jobs numbers this is nowhere like a goldilocks if you look a year ahead, it is going to be much worse >> i would have to jump in here on the fed outlook >> go ahead, nila. >> if the unemployment rate stays where it is and we can get more people working without a commiserate increase in wage growth, what that does is gives the fed the latitude to pursue a more aggressive policy on inflation. if it's to the extent hathat it br bleeds over into the labor

market, now they have to also think about the labor market in their decision making. so personally, i think the positive growth numbers in this jobs market fgives the fed more permission to really attack inflation and not worry so much about what the outcome would be on the labor markets >> fair enough, nila, if i wanted to be glass half empty, and the jobs number to your point was a good number overall. 74% of the u.s. economy is consume earn spending. the one area that dropped employment was retail. retail trade dropped 61,000, month over month i'm not trying to find some sort of -- yeah, retail fell, and you just wonder, rick. we talk a lot about the consumer and the economy, is this a canary in the consumer coal mine giving that retailers were laying people off? >> i couldn't agree more, brian.

i'm one of the few out there who now thinks there's two canaries in the coal mine, the one you brought up and three, four five fridays ago when we have the consumer credit number come out at 52 billion on a month over month basis. huge, historic move. to me, when you look at some of these anecdotal signals regarding the consumer and you consider in sri's state, over $7 for gasoline as people go back to work. i don't think you need a rocket scientist to figure out that the consumer is going to be overburdened it's not enough right now. and i think that will continue to be the story, that two-thirds of the economy is going to showdown a built the question is how much and for how long. >> i'll make two counter points on that. one would be, look, it's higher gas prices and that definitely increases the cost of your commute, but if you go back to work you can live in their air conditioning instead of jacking

your air conditioning up all summer plus there's the friee doughnuts i'm not super surprised that we see a decline there. it caught me off guard, but remember what we heard from amazon and walmart walmart talking about how they were overstaffed and people came back more quickly than they anticipated from some of the covid issues maybe what you're seeing is a reflection of okay, we had staffed up we ready for the flood of consumers. we overstaffed ourselves in the warehouses for amazon and the stores for walmart, and maybe this is a reflection of that, too. >> one quick point, becky. talking about demand destruction. you can have demand destruction in a normal recession, but i brief believe we in a situation comparable to 1971 to 1981 gasoline, fuel, food, as they

keep increasing and the demand does not come down, it will be made more difficult. it will not be made more easy. so look for a period of continued increase in interest rates. look for a period of significant reduction in the balance sheet before inflation comes down to manageable levels. >> and liz, just very quickly. is there anything you would change about what you are advising people today with what to do with equities based on the numbers we saw this morning? >> no, but i do think we're going to continue to see volatility through june. so what i've been talking about is number one, cash is still an asset class, and i think we continue to swing in market, and something that i want to point out that we haven't talked about yet is that big spike in the dollar index and remember what we just heard from microsoft that type of spike is going to put pressure on multi-national corporations think about that in earnings season in the second, third and fourth quarter, and i think we're still going to see worse news to come

>> we kwant want to thank our p this morning >> thank you let's broaden this conversation out from jobs to the entire american economy. join being us is tyler goodspeed. he is now with the cato institute. and betsy stephenson, economics professor at the university of michigan she served under president obama. it's a pretty good job number, 390, kind of like that goldilocks number. wages went up but weren't so bad that we're worried about the federal reserve. your take on the jobs number >> i think it's a great number we already new employers wanted to hire. the question was, were there going to be enough workers to meet the demand that employers have to hire people. and we saw they were able to find 390,000 additional people who wanted to go back to work, and we saw women's labor force participation hit a

post-pandemic my high this this month. one of the big questions was will we see women return to the labor force and we are seeing that labor force continue to increase >> tyler, i brought up the retail thing again i'm not trying to find holes in it but you want to be honest about the consumer, because the consumer is the american economy. we talk about inflation, it's a regressive tax those who can least afford it, we all pay the same thing for gas no matter how much money we make your take on the number. >> i agree betsy that it is a strong number, and it's kind of status quo in that we had a tight labor market before this may jobs report. we have a tight labor market with the may jobs report in terms of the inflationary pressure, i was disappointed to see the labor force participation rate not tick up by more. it did tick up, but it didn't offset the decline in labor force participation in the preceding month, and when it comes to inflation, i think

those two stories are related. because workers respond to real wages, not nominal wages and we've been seeing real wages continue to decline in recent months because the nominal wage growth just hasn't been keeping with inflation >> is there anything, betsy, that the government can do on inflation? i know we always now, these days we look to the government for answers on everything. sometimes the government can't do anything. >> actually, can i say something on the retail trade thing. because what we did see was a loss of jobs, particularly at general merchandise stores, but they were more than made up for by additional jobs in transportation and warehousing so this switch to people buying online and getting out of retail stores is, you know, accelerated in the pandemic. it's what we're clearly seeing is it's not reversing. i wouldn't make too much out of that decline in retail jobs as being the canary in the coal mine what can the government do

the problem is that the government does not have a lot of leverage to solve the supply problems that are contributing to inflation what they can do is try to address demands. in particular, the federal reserve is going to try to increase interest rates, decrease demand and try to get these prices down, but they need to be clear, you know, they need to make sure that they don't move too quickly because if they move too quickly,que we could really co the economy down too much and without even really bringing prices down. at the end of the date y, the fs not going to bring oil prices down and we don't want to see all these factories closing down in order to bring oil prices down >> is the fed going to take a bat to the baseball sprinter's knee you wonder if they can thread what is going to be an incredibly small needle. >> it is going to be an

incredibly small needle many when you look at the entire post-war period since 1945, we've never had a situation in which inflation's been above 4% and unemployment below 4% without a recession following in the next 24 months i think the fed are still behind the curve on this, though. because in order to meaningfully tighten conditions you have to raze nominal rates by more in the change in expectations the expectations according to survey data have risen from 200 to 400 basis points. so 150-basis point rate chhike not going do what the fed wants to do. one of the places is energy. and there are concrete steps that the administration could be doing today to start bringing down some of the medium to longer run pressure on energy prices by increasing permitting, increasing leasing if they really wanted to bring down near-price pressure they

could be implementing jones act. >> you're talking about the rule about shipping, why refiners in houston are going to sell to rotterdam rather than new jersey because of weird shipping regulations. by the way, recessions are not always a bad thing sometimes you have small ones that clean out some of the froth. bring down things like housing that people need to come down. the rent is too darn high in many case. do you see recession as being inevitable this year or next >> i do not see recession being inevitable do we run a risk of recession? absolutely it's actually worse and more painful than inflation are you right to describe inflation like a tax it's a pain that we all share. what recessions do is really krober some families by

decimating their incomes, their job prospects. and so my hope is that we can do is sploe is slow the economy without having a lot of people lose jobs there aren't enough people, we will run out eventually. what we have to do is bring this down slowly and to do that to st of bring down consumer demand. we need to see consumers shift their demand a little bit because they're still all hyped up by goods which is sort of a shift away from services towards goods that happened in the pandemic we haven't quite seen them go back towards services and away from goods and kind of need to do that because we're still having trouble getting goods from overseas. to really get the price pressure off goods, we have to see people say, you know, no more treadmills, i'm going back to the gym. >> by the way, i want to be clear, betsy, correct you. i was not saying job losses were good i was talking about bringing pricing pressures down as somebody who had job losses

in their family, i understand it and lived through it i was talking about pricing coming down. that's also very regressive. i think you would agree with that, right? >> yes, i agree. when you say recession, i think job loss >> i certainly understand. i just wanted to make sure it was clear on that. thank you. polite, good debate. >> let's get to the man of the hour, jim cramer standing by at the new york stock exchange. what's your take on the number we just got. what's it mean for the equities market, for investors writ large? >> we have to kill the canary in the coal mine stuff. honestly, the coal mine, what's really this is is a leveling off. it's the beginning of what jay powell wants it is not some sort of really dangerous thing because we have so many people who have been taken away from the labor force between covid and the idea we cooled, tamped down on immigration. i don't know, it's going to take a little time, but you're going

to get 50 and then 50 and i think powell wins and people continually think this guy is not -- doesn't have his a-game, and i think it's wrong i like the number. i think it's perfect yesterday, we were up very, very big. we have to give some of that back, especially because the news from katie huberty about apple maybe missing the quarter is weighing on the market, but i'm fine with it i think jow to accept the fact we do not have enough people in this workforce it's not going to be -- there's not going to be a lot of job loss >> labor force participation did tick up. maybe that's the best sign >> that's good >> if you bring more people back >> look, i know ten people who have covid right now i think covid is scaring people. we always minimize it. we should not minimize it. people, i mean, people, i'm getting the covid twice thing. i really see that covid continues to overwhelm, particularly with work from home

and that creates more housing and housing is not going to be in recession retail may be, but then you read a guy like garrett friedman and you could say, garrett is really negative ain't from our age he was even more negative than last time. there's not as much wealth effect i don't know let's just give this guy a break. it's going to take a year. he's slowing things down it's not going up anywhere shouldn't that we what we're talking about? >> jason furman said the average hourly earnings growth is about last year. 6.5% last year to 4.5% this year >> i'm with furman i'm with him he's a smart fellow. >> also the former college roommate of matt damon did you know that? >> he is really that's random but interesting. >> holy cow. either damon is really boring hoar furman has more game than we thought

can you imagine? >> how you like them apples? >> i'm all in furman that's incredible. >> speaking of apple - >> furman is also a college in greenville, south carolina >> they're wrapping us out i want to hear more on your apple take but i think i'm going to have to stick around with the viewers. >> i want to know about ben affleck. >> i think they're still in touch. >> make him an anchor. >> jim, we'll see you in a few minute i'll be listening for your apple take, too. icbrk.tea ight back afr quk ea

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all right, if you missed the jobs number, the labor department says the u.s. economy added 390,000 jobs last month. futures are at session lows despite it being a goad goldilo number if this is a goldilocks number, i would hate to see cold porridge >> you know, brian, when markets are worried about stagflation, it's tough to thread the needle on good because if you get a good number, it's inflationary if you get a weak number, it's

recessionary i think that's what we're struggling with today. but i tell you, i think this is a really good number the labor force has now increased at a 3% annualized pace in the last seven months. if we could create 3% job creation on an annualized basis with the labor supply needing everything bit of that, it would not be inflationary whatsoever that's showing up. in the last four months now, the annual hour of earnings wage inflation number is down to 3.7% on an annualized basis that leaves a lot of room for the cpi index to come down i think the labor force participation rate was up. labor force grew again unemployment rate did not go down stressing the labor market pressure yet i think this is a report that was supply-side driven we can weaken demand while we're improving supply i think it's a really healthy

report >> but the market is not saying that, jim. futures down stocks, nasdaq down 23% this year the market is saying the economy or something is wrong. >> well, they're very concerned about, and this morning, about inflation. there's no doubt, with a really hot job market that stays hot. you know, it's going to generate good income for consumers. they're going to advance and stay strong. but i would argue this is more of a supply side driven labor market right now, with decelerating wage inflation and cost pressures, if you will, and still solid growth i don't know give the market some time. it's a long day yet. with the bond yield surging higher towards 3%, futures sell off, but it's a long day, brian. i really think people are going to look at this as this is good for earnings and good for inflation overall. >> we'll see if we get the paulson put. jim paulsen, thank you very much the sun will come up tomorrow.

jim, thank you i knew you were going to start singing that >> final check of the market dow futures down by about 230 points s&p futures down by 40 nasdaq off by 181. this comes after a strong day yesterday. the last day of the week, so this matters brian, thank you for being here all week it's been a pleasure folks, that does it for us today. make sure to join us next week right now, time for "squawk on the street." >> good friday morning, everybody. welcome to "squawk on the street." i'm david faber. he's jim cramer. carl has the morning off let's give you a look at futures as we wrap up the trading week here in the united states of america. not looking so good. >> oh, stop. >> all right, i'll stop. i'll start with the road map, which starts with job growth beating forecasts. a sign the labor market still going strong but as you just saw, futures are kind of near the lows of the morning. plus, quote, super bad feeling elon mus