unemployment rate ticking higher to 3.7% from the 3.5% that had been expected. average hourly wages higher than expected but the participation rate went up, it was 62.4% that adveties the highest rates we've seen in the post-covid era. the stock market is up significantly. i want to thank both steve and mike for being here. join us on tuesday right now it's time for "squawk on the street. good friday morning, welcome. i'm quarrel quintanilla with david faber and leslie picker. jim cramer has the day off 315,000 shows job growth moderating a bit labor force matching the post-covid high, as becky said yields are down ahead of a weekend. futures rallying as the number comes in as expected, cools

fears of a more aggressive fed ahead. plus a retail outlook lulu continues to see strong sales. and fresh off signing a major contract extension, russell wilson kicks off a partnership with carrier the carrier ceo joins us at 9:00 to explain we're looking through some of the internals we mentioned labor force the discussion this morning, guys, is if we can put together a moderating cpi number on the 13th, what does that mean for the fed this month >> yeah, i think that's the key. when you look at the market reaction to this report, it's very clear that it's a mixed report it's not out of water hot. it's not too cool. so you've got kind of a positive, muted reaction people of course are going to look ahead to what's going on with cpi

neal kashkari says he's not giving much credence to what this data shows, it's all about inflation. however if there was a data point to look at with regard to inflation, it would be wage growth, which we saw tick up but definitely down from some of the highs in terms of year over year gains we had been seeing >> i mean, i listen to "squawk box" because they do great analysis right in the moment almost every one of the participants in their panel, the word "goldilocks" was used you did have an increase in the participation rate, which is a good thing, 62.4%, apparently younger and older workers both starting to enter the workforce in a way they had not been previously in fact the labor force growing by 800,000 workers that's a big jump. and the unemployment rate as a result is now up to 3.7% but some would view that in a positive manner. but again, it comes back to a certain extent in terms of the markets that we watch and what

that's going to mean for what the fed does carl, as we've heard many times from mr. cramer, he believes the fed does want less job growth and certainly less wage inflation, because that's going to be a key in terms of the war they're waging overall against inflation. >> right, and the market has gotten used to the idea of goods deflation or at least disinflation after the ism numbers come in, prices paid, supply chain, new orders, all of that sort of retracing the covid highs which is good to see but now the market knows it's going to be about wages. and that's why directionally this number might be friendly to the bulls, although we should point out the week has not been friendly at all, almost every dow stock is down for the week, a third of the dow names down 20% for the year and four are down 30% for the year, crm, in intel, nike, walgreens >> i read a statistic that

stocks were down every day since jackson hole, since that speech was given. someone on "squawk box," i watched it too, david, they were saying that this read is not so hot as to indicate it pushes the fed to 75. but not so cool, using that goldilocks analogy, that it pushes the fed to 50 it kind of creates this continuation of an uncertainty regarding what exactly they're going to do in a couple of weeks' time when they do decide the next -- whether it's going to be a jumbo rate hike or it's going to be something a little closer to 50 >> but yeah, and leslie, of course, as you point out, he are down, one week, 2.24% on the s&p, certainly a negative reaction to chair powell one week ago at this point when we were watching him so closely it was interesting initially to watch that market reaction, which was not bad, but over the course of that day, last friday, and then the ensuing days, certainly there has been an adjustment to the idea that hey,

they're going to get to the terminal rate and stay there longer still, how long continues to be a keyquestion. there are those who believe this kind of a number does encourage at least the belief that they can engineer a soft landing, and that is one of the keys we're also watching. we'll see whether we can maintain at least a bit of the gains that appear to be in store for us when we get started with trading about 25 minutes from now. >> another thing we've also seen is bonds in a bear market, government bonds and investment grade bonds down significantly this year. we haven't seen that kind of a pressure in terms of yields throughout the bulk of the year that would create more of a slowdown in things like credit conditions and mortgages, of course are up to 5.66% right now. all of those things do have an effect to slow down the economy, or at least that's the fed's intended effect of hiking interest rates but throughout much of the spring/summertime, the market was kind of ignoring that and saying, you know, we're going to keep yields under 3%

that's not going to have the same kind of effect as slowing down the economy >> meantime, energy prices are going to be a key part of the discussion oil is back up today we're watching g7 talk more about an agreement on russian oil price caps we've got tropical storm danielle which could become the first big storm in the atlantic basin, and of course opec plus fundstrap looking at how much gasoline might subtract from august cpi, 0.6, which would be more than the 0.4 in july which would feed that disinflationary mindset. gas prices, 380 or so, six-month low. incredibly, oil now well below where it was when putin invaded ukraine, not at all what people expected in february >> you have to wonder if there's a reversal with regard to what we see was there the price of

gasoline, with regard to the price of oil, how sustainable and how much the fed will look at that and say, well, it's just so much in response to what's going on with oil. but the rest of these factors are still very high. and so, you know, we can't put all of our stock in oil. >> the fed's been clear about that, we're not going to get snookered by gas prices going down just to see them potentially go back up in the fall >> moving on, guys, other names we're keeping a close eye on include starbucks. yesterday the ceo will start in april, it was announced. howard schultz will remain the interim ceo during the transition he calls narasimhan the leader

to take starbucks into the next generation we were wondering why they made the leadership change the way they did, particularly because the way they played it at the time was johnson had given them notice in some way yet they failed to find anybody to come up with it i still question that. now they do have their leader for the future but they are dealing with a lot of transitions at starbucks, in particular so many of their orders being digital, how you actually, within the starbucks itself, create those orders, keep your employees happy, and perhaps from continued unionization >> no wonder they'll give him until april to sort of get used to this. the board has asked schultz to stay on asceo until then, give him a chance to get plugged into the changing ways they're doing business the other thing that's being talked about today is his

experience in consumer packaged goods, is that a sign that perhaps they'll start to lean into packaged starbucks over the retail experience? >> i thought that was interesting too, the way they're ramping this up, having him join the october in october but not officially taking the helm as ceo until next year. this idea that he's going to come in and learn about all the big plans they already have. usually you have a new ceo come in and put their rubber stamp on, put their strategic vision on reading between the various press releases and reports, he's going to come in and execute this bold vision that's already been in the works for quite some time, while layering in his expertise and his experience at mckinsey >> is he the ceo we had on in the depths of covid? >> yes >> when you had a discussion about some consumer products >> yes, some consumer products that are involved in preventing pregnancy. it was an interesting discussion >> one for the ages.

>> it was. he sent me a nice box of said product as well, to new jersey, and i gave them out to all the young people in the office of course there were no young people in the office so i think the box is probably still there. we'll let you figure out the rest on that interestingly, howard is going to stay on the board he had stepped off, of course, and then came back but he'll continue to be a board member. one would imagine he's going to have a significant voice in that boardroom for quite some time to come, to take a look at mr. schultz. he's the interim ceo and will be so until the spring of next year >> remember his expertise with lysol and other things, maybe we'll expect even cleaner stores speaking of young people, perhaps, young and old, i guess, lululemon is the premarket gainer, the yogawear retailer issuing upbeat guidance and posting better than expected quarterly results including a

29% jump in revenue. yesterday the ceo calvin mcdonald spoke about the state of the consumer. >> we're monitoring our guests' behavior very closely and looking for any signs that would indicate a change in behavior. as to date we have not we grew our men's business 27% we grew our women's business 24% in the quarter our traffic increased 30% in stores, over 40% online. new guest acquisition was up 24%. transactions with existing guests up 17%. positive comp growth in stores at 18%, online 32% and across the region so we're not seeing that, it's driven by full price innovation. >> so growth was balanced across genders, it was across existing guests and new guests. they had growth in china and i liked this note, i think

it points to one of their growth areas they see, it's titled, strap on your fannie pack and get long lulu. that's because this belt bag that's become increasingly popular grew 50% of their accessories. >> do you have any of the belt bags >> i actually looked at one, i took a trip to europe, i thought it would be handy, and i couldn't get my act together to get it shipped in time so i never bought it. >> our producer has three of them >> three of them >> yes, three. >> there you go. that explains it >> that's how you get 25% annual impounded growth rate over years. >> only looking for 16 >> more than one belt bag. when we come back, carrier teaming up with denver broncos quarterback russell wilson, announcing a new clean air and energy partnership they'll join us here and reaction from the white house on this morning's jobs number nec director brian deese will join us, when "squawk on the

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getting some august sales figures from ford. let's get to phil lebeau this morning. hey, phil. >> hey, carl ford had an increase of 27.3%, people might say that's a huge surge in comparison to august of last year. sales were down 35% because of

the chip crisis. there's a lot of bright points in terms of deliveries for ford, suvs up 47%. best month ever for f 150 lightning deliveries as they ramp up those deliveries, increasing with a total of 2,373 delivered. and speaking to the demand for the lightning as well as the other electric vehicles that are out there, the days to turn, david, this means how long it takes for a dealership to take a vehicle, process it, do the paperwork, get it to the customer, the days to turn for the f150 lightning, eight days in a normal market, you usually have a vehicle turning, i don't know, every 35, 40 days. eight days talks about how much demand there is right now for the f150 lightning >> wow that is fast phil, thank you. phil lebeau, ford shares you can

see moving up a bit. we'll get a better read on that 14 minutes from now when the market opens carrier and denver broncos quarterback russell wilson announcing a clean air and energy partnership we'll have the other guy too guys, great to have you here we're a business channel so i'll actually start with the business guy. you describe this, david, as the abound platform we're talking about, a digital platform that enables reduction of carbon emissions from buildings what exactly are we talking about when we talk about a digital platform and what that will allow for >> you start with the premise, david, this buildings are fundamentally changing it used to be a shelter, you would go in, you hope for good lighting, air conditioning, heating. now you're looking for healthy

indoor environments, sustainable. 40% of carbon emissions come from buildings we call the digital platform abound, to drive a more healthy indoor air environment so you can see through a digital dashboard whether or not the air quality is good and take auto correction to fix it if you have 10,000 buildings around the world, you have elevated carbon emissions in one building as opposed to another, sense it, and auto correct it. abound is our digital platform to create these healthy and sustainable indoor environments. >> russell, how did you become involved with this effort to improve and/or monitor indoor air quality? >> it's a fascinating story, obviously i love playing football i had all my teammates down in san diego. and at the time in seattle it was 105 degrees. 45% of seattle has air conditioning, the rest not and a lot of my teammates didn't this were saying, man, it's crazy hot. me and one of my teammates were talking about how do we create

opportunities to have healthy air and air conditioning fast forward, i had my management guy larry estrada do a study on the effect of air conditioning across the country and the effects of it. what it means around the world globally fast forward, i saw that a lot of schools had bad air, obviously covid was going on, so many different problems with that then i said, you know what let's get in touch with the number one air conditioning company in the world, carrier, the ceo, david, is in seattle, i said let's meet. we met on the back porch and talked about this new opportunity with abound and what we could do and what it means for kids i obviously have my young kids, they struggle with asthma, i have asthma. the whole understanding that we want to be able to make sure that the buildings we go into, the places we live, low income housing, the different buildings, the malls, where everybody walks and talks, making sure they're breathing in good air >> you actually started this thinking about potentially an investment opportunity, you said

you approached your wealth manager to sort of study this issue? >> yes, it was a big thing obviously my wealth management guy, from goldman sachs, we started talking about how abound and the process and the opportunity to create this tighten for america and the world, how we can have a major impact with healthy living and healthy air. >> david, i'm curious, given russell's anecdote, how he got involved, 105 degrees in seattle, we're seeing record temperatures in all sorts of places this summer and in previous summers across the globe. are you seeing more demand come from just these newer markets? or is it this kind of post-pandemic world where people are so much more focused on clean air, what's circulating, what kind of germs are out there, a combination of both, and are you able to fulfill that demand >> it's a combination of both, leslie we're seeing demand for air conditioning in parts of the world that never had it before in uk, 30% of homes have air

conditioning in seattle, as russell was saying, less than half have air conditioning the hotter the planet gets, you have more demand for air conditioning, and the more air conditioning you have, the hotter the planet gets the new inflation reduction act gives incentives for people to buy heat pumps, incentives for people to buy more energy efficient systems. we're right in the middle of that $370 billion spend to get more energy efficient systems into people's home and into buildings to really reverse that cycle. >> when the conversation turns to emissions, the criticism is often, we can do as much good work as we want here but it doesn't mean the players around the world are going to match us, right? does that good work get lost how global is this initiative? >> 100% global we have abound in a billion square feet globally we have places like the home depot where we cover 2,000 stores today

we bought toshiba's hvac system, we'll be deploying it to their customers in japan, thailand in china we have very strong market share 100% of global platform. >> you mentioned obviously the inflation reduction act. do you expect that carrier is going to be a real beneficiary are there any specific opportunities in terms of saving on your taxes, for example, for consumers who would use -- and/or commercial buildings that would use your equipment >> today, if you buy a heat pump you get about $300 of tax credit under the new inflation reduction act you can get between 2,000 and $3,750 for buying heat pumps. david, if we put heat pumps in every home in the united states, that would be the equivalent of taking 32 million cars off the road so heat pumps is going to be very, very significant it's also incentives for buying more energy efficient air conditioning for homes and energy efficient systems for commercial buildings

>> right, and you're a big seller of heat pumps in europe as well, i believe >> we are the number one seller of commercial heat pumps in europe >> you'll have some issues in terms of providing energy overall. >> yes that's a major thing in europe, u.s. see the energy prices and as europe is trying to we know itself off russian gas, which is a big deal, there's going to be a highly subsidized transition to heat pumps and we're right in the middle of that transition. >> let's come back to the quarterback here you mentioned your wealth manager. you just signed a well-deserved contract as one of the best at what you do on the planet. >> we would say the best >> we interview a lot of quarterbacks here at cnbc. what are you going to do, how are you thinking about investing over time, especially given you're going to have even more at your disposal >> i think there's three things that me and sierra are focused on we're thinking about impact as the number one overall arcing thing. we're focused on the mind, body,

and soul to me, partnering with carrier on this journey is really focusing on the body of people and also their minds once again, going back, we're fortunate to be able to create a school called the why not you academy in seattle partnering with carrier, this is an example, how can we impact our kids in school statistics show based on the co2 levels and everything else and studying, test scores and everything else, the worse the co2 levels are, the worse their grades are going to be little things like this, and how can we have an impact. i'm excited with carrier, obviously there's a lot of other things we're investing in technology, we're interested in the media world. we have some cool things going on there as well it's an exciting time. >> i'm from denver it's hard for people to understand your arrival in town is the biggest thing in like 30 years. and i've got to think, we discuss a lot about media

rights, sports rights, the overall health of the league is incredible right now i wonder how you think about that going into the season >> it's an exciting time, obviously being in denver, you know, we have such an amazing team i think that, you know, if you think about just national football league, the other day they said the national football league, preseason, how many people watch preseason more than the nba finals it's fascinating, what our sport is doing globally. obviously we had new ownership too. it's an exciting time in denver, obviously with the pennon group, we have people like melanie hobson, it's an exciting time there. i'm excited, this is my first time being on set with you guys. >> they paid $6.45 billion for that franchise how many more seasons do you have in you, russell >> ten to 12 12 would be the biggest goal

>> over 20 years untiin the lea is the plan. >> that's always been my plan. >> looking good so far we'll have you back for sure guys, thank you both coming up, brian deese will get white house reaction to the jobs number. the market got a pop on the heels of that market 315,000, with labor force determatinion back to 62.4 back after a break

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we're counting you down to the opening bell, coming off the main news of the morning, the unemployment report. a number of different earnings we're watching we've gone through lululemon we'll get to broadcomm as well, an important earnings report there. let's wait until we get the bell itself but, you know, carl, we're digesting another employment report each one becoming more important, as we try to figure out 50 or 75 upcoming.

>> there had been some discussion yesterday that today's number was incredibly strong, does the 75 to 100 discussion get raised again? clearly that is not happening with the way in which labor growth is moderating a bit [ bell ringing ] watching unemployment growth go the way they want to be. the real time exchange, for the first time this week we may more green on there here at the big board, college licensing company, a subsidiary of interfere, celebrating college colors today a lot of football today, super bowl lvii, their tenth all time presentation of the championship game >> take a look, that's a lot of between. >> early days, though, because as we saw yesterday, the markets opened one way, then closed in a

much more optimistic posture today we see all three of the major indexes significantly in the green after what had been kind of a difficult week september, things are looking a little brighter, at least. >> i did want to get to broadcomm because it has bucked the trend to a certain extent. the report, at least as i can tell at this point, of earnings, nothing particularly bad, and the market reacting, as you might expect, in a positive fashion as a result. reported july results, october, $8.9 billion in terms of the guide for the next quarter that was ahead of consensus which was $8.7 billion adjusted ebitda running at roughly 63% of revenues. and noting that demand, leslie, remains strong across all end markets as customers continue to invest in data center upgrades and refresh and broadband with the wireless ramp, iphone ahead

and the like any number of technology companies have given some positive reports but guidance that has been a bit weaker as a result of customers perhaps stepping back a bit. not the case, it would seem, from broadcomm >> that and pagerduty as well which also has cloud exposure, that's up about 7% on its earnings which show a similar benefit, exceeding wall street analysts' forecasts for 2q at least for the top line, kind of a nice case study for what we're seeing with regard to certain end markets that are holding up amid some of the other macroeconomic slowdowns that have impacted technology >> every morning you try to keep a list of the companies that are either guysing lower or missing gi guidance or guiding higher and beating guidance those three had raised guidance,

better than what we've seen for the week and the street has been reacting, citi's call on semis, a lot of those trend lines rolling over in tech >> i'm glad you mentioned nvidia, carl, the stock was weak yesterday, that on the need for a license. that was essentially the u.s. government saying no, you can't selling these advanced chips to china or manufacture things in china. this was out yesterday, so it was incorporated in the trading that took place, but they did say the government has authorized exports, reexports, and in-country transports needed to continue their development of the h-100 integrated circuit after they told us about what might be a $400 million hit from their inability to sell these v advanced, particularly for use in ai, in china. that stock, that's yesterday you can see, though, what it's

done over time nvidia is down 52.4% for the year >> wow all of those charts, though, lulu was down for the year as well i think pagerduty was down significantly for the year a lot of the reports we've seen this morning that have been exceeding expectations were down pretty significantly, underperforming the market there's also been a lot of management change use in the flow this morning. we talked about what happened at starbucks. there's also shell with reuters reporting that its ceo is preparing to step down next year he has led that energy giant for a decade looking internally with four candidates inside the organization to succeed him. but perhaps some of that is seasonality, the fact that we're getting to september but it's also on the back side of the pandemic. ceos who have led their companies through crises are looking for kind of new blood to fill those roles

>> yeah, oil definitely leading the market this morning. schlumberger, marathon, halliburton, mohawk, eog, all in the 2 to 3% range. we were mentioning chips a moment ago even though the price action has not reflected it, it's been a directionally positive week. news week for qualcomm, david, the news they're teaming up with meta to develop a custom chipset for virtual reality. that comes on the heels of the eu and obviously not going to appeal that case that was going to cost them almost $1 billion >> although they did get sued by a.r.m. earlier in the week they're always dealing with a certain amount of litigation at qualcomm, obviously very tired into wireless. as you point out, carl, the stock's performance this year has not been particularly bad, at least certainly well outperformed the broader market, being down less than 10% over the last month year to date, it's worse than

that if we go back a full year, not as bad last three months has been much of that decline taking place >> you mentioned energy, one of the outperformers. leslie, banks also your area, benefiting it would seem at least from a response to the job reports, that may or may not mean rates, off a little bit jpmorgan, bank of america, citi, all up, you see it there, it's call it 1% >> that's an expected reaction when you look at today's jobs report because what it implies is this idea that maybe the fed can engineer a soft landing. maybe it won't be one of these situations where they'll have to create some sort of really difficult economic environment which would be bad for banks while simultaneously raising rates which is a tailwind for these banks. that's the sweet spot that banks and bank investors want to see happening. it's not an easy sweet spot to achieve. but any new data point that

suggests we could be closer than that, you can expect to see a percent higher for some of the big wall street firms as well. >> one ceo had interesting comments this week, talking about consumer trends, spending trends which were up double digits year on year but basically flat july to august. he did say, we're not economic prognosticators, we can only see the trend as it is today we don't know, for example, if you're not feeling confident and will spend less two weeks from now. we only know when it happens trends can change but the good news is they hadn't. that's what the bulls are hanging their hat on right now, around consumer spending >> companies are opportunistic, we have a sound bite prepared from the cigna ceo on "mad money. we should have that ready.

>> i continue to think our stock is undervalued we see a lot of upside potential. we're staying focused on, one, consistently delivering annual double digit margins the second is we've stayed focused on our capital allocation priorities. we have continued to invest to grow market share. >> it's one thing i guess to be purchasing more of the belt bags from lulu, another thing to be purchasing jewelry and weighing those decisions. you can see signet down a half a percent this morning >> belt bags seem to be doing pretty darn well for lulu, up another 10% for lululemon, not bad. >> a lot of hundreds in a belt bag, i guess >> they've distanced themselves from so many competitors i've even got a pair of those pants now. >> i'm literally wearing them right now. it's made it easier to shop if

you're a guy, i would argue, for work and for leash there was a comment this morning that they're almost operating in a different retail environment than a lot of their competitors. i was trying to put together probably the best retail quarters that we've seen this quarter. i'm not sure, cramer might disagree, he would probably say something like dick's, williams san sonoma >> they do have very high inventory levels but they're not a retailer that's really known for doing much discounting to get rid of it did i did see some reports about, we made too much, that section on their website where they do discount things every now and again, but they're not really seeing, especially compared to a lot of their peers, as major discounters. they are able to somehow work through their inventory regardless but that is a point that they're also facing challenges relating

to inventory just like their peers. >> yeah, i'm glad you mentioned it, actually on a unit basis, increased 64% but three-year annual compound growth rate. when you're talking about a 26% annual compound revenue growth rate, that's not one that many retailers have seen over the last three years not many companies >> companies in general in this environment. >> well more than $4 billion market bag >> dow is up 130, we're back below 4k on the s&p. jobs number, 315,000 added in august as expected, unemployment ticks up at 3.7. joining us with first reaction out of the white house, brian deese, great to have you, happy friday the white house was asked about the jobs number earlier in the week and the spokesperson did say we do expect some to cool. your reaction to the print >> it's good to be here, carl.

there's a lot of encouraging news in this report today. on the jobs side, we saw at 350,000 jobs, we never look too much at one month. but if you look over the last quarter, there's about 375,000 jobs a month average that is down from earlier in the year at 5 or 600,000 jobs but still a very solid pace. and i think the big encouraging sign in this report is on the labor force. so we saw the largest increase in labor force participation so far this year. prime age labor force participation, that's among working age americans, is now at its highest level, a couple of months before the pandemic, that we've seen in a decade women's participation now higher than pre-pandemic levels so we're seeing people come back into the labor market. that's the kind of thing we want to see so a lot of encouraging signs here in the report >> what do you think is driving participation, if in fact we're starting to make some real headway, is it about covid

restrictions falling is childcare getting easier? is it about perhaps gas prices coming down, making it easier to commute, or some mix >> i think it's a combination of things because of the strength of the labor market, we're seeing job openings and job opportunities that americans can get access to that they haven't in the past. i think that the decline in, as you pointed to, energy prices, particularly gas coming down, today we hit the 80th day in a row, gas prices are down $1.20, that provides some relief. i think we are moving into a school year where there is more confidence and more certainty around the ability to plan in an environment where, you know, we still have to deal with covid and we still have to take on those issues the new boosters that were announced will be a big part of that there's more confidence in the ability to plan around family and care responsibilities. i think all of those things

together are creating a dynamic of sustained and steady progress in the labor market. and as i said, that labor force, what we want to see is more people getting into the labor force, more getting jobs with higher wages this is certainly an encouraging report in that respect >> do you think the fed is working against new that goal? as they work to tame inflation, one of the focuses would seem to be on wage inflation, it would seem to mitigate perhaps your hopes that you just outlined >> look, i think on the wages side, you saw wages come in at 0.3% monthly that's a hair under 4% on an annualized basis that's something we and the fed will continue to keep an eye on over the course of months. but i think that we are where we are in this economy, which is in a transition what we want to see is a transition from a very strong recovery to that period of more stable growth. and i think that today's data is another indication that the

strength of the labor market is one important element of that, because if we can expand labor force participation and get more people into the labor market while seeing solid wage gains, sustainable wage gains, that's the kind of transition that we want, that's the kind of transition we want to see. >> right listen, the numbers are strong we've made back all the 22 million jobs lost during the pandemic we have a 3.7% unemployment rate, up a couple of ticks, but the participation rate is up and yet, a majority of americans, when polled, voters when polled, would not hold your administration to a high -- would not say your administration has done a particularly good job on the economy. why do you think that's the case >> look, for all the progress we've made, we have a lot more work to do obviously the cost issues and price issues, inflation challenge is one that's affecting people around the world, affecting americans here at home.

that's why what you'll see from our administration and the president is a focus on bringing prices down. that's what the american people want to see. you're seeing that in gas prices coming down, providing some welcome relief we're seeing at least some indications of easing on pricing for example in the logistics and transportation sector as well. but we're going to stay at this. and importantly, we have now tools that we can implement over the course of the next couple of months in the context of the legislation that we passed this past month with respect to building out semiconductor capacity, bringing down health care costs, expanding clean energy manufacturing in the united states. we have those tools to deploy over the course of the next couple of months and we hope we'll be able to demonstrate in practice and in real world terms the impact that can have on families and communities and on easing price pressures >> in terms of certain trends, obviously this report is a very good report, especially given what's going on in monetary policy right now but with regard to, you know, certain details in the report,

things like average hours coming down, lower wage inflationary pressure, if those trends continue, it may be good and more tenable for the fed, but are you concerned about the political pressure, especially as we're a couple of months away from midterms? >> well, look, i think, you know, a good jobs report is a good jobs report and that's what we see this month. both at the top line, 315,000 jobs, the trend of solid job growth while still coming down from earlier in the year and we have said it before, we'll say it again, we continue to expect that to moderate going forward. as you would expect, if you look at 2018 and 2019, a period where the unemployment rate was low, we only saw a couple of months with job growth above 300,000. so you would certainly expect that to come down. but underneath the hood in this report we see mostly really promising trends as we've talked about, particularly on the labor force side we're going to keep our head down and never put too much

emphasis in any one month's report but when we see something that's encouraging, we're certainly going to focus on the encouraging elements of those, but also the policiesthat we can drive and implement now that will help to sustain that progress we have tools, particularly on the health care side, particularly on the clean energy side that's going to be our focus, implementing them will so american families see the impact >> we would love to get you back on a day other than jobs friday, brian, maybe talk more about energy, sprs, semiconductors in china, a big piece today on the front page of "the new york times. but it's good to see you have a great long weekend. >> great, let's do it. thanks, carl >> brian deese we did see a decline in treasury yields on the heels of the jobs number. can we get the two-year back below 3.4? we'll see. certainly the ten-year back to 3.2 is a difference from yesterday. we're back in a moment

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holding on to gains ahead of this friday. good morning, bob. >> good morning, carl. happy friday, everybody. the jobs report wasn't that far from expectations, but it did move the markets oil moved up interestingly, and stocks moved up and have held their gains. the high print was right at the open we got good corporate news from lululemon. the sector are the growthier stef oil has been killed all week, metals and mining, semiconductors strong, broadcom was okay, so they tend to move inseriously.

cathie wood's ark innovation started off strong now it's down. health care has been lagging it's not been a good week for energy global demand has been perceived to be lower. but today's reversing a bit. these are high beta names. they're all to the up side as to where we are right now, let's just call the jobs report, if you're a bull, looking for inflation to come down, i'll call it a step in the right direction. slower job growth, slower wage growth that's exactly what everybody wants, because it adds to the peak inflation data. it doesn't mean there's going to be rate cuts, but at least it adds to the peak inflation

thesis what's nexts what's going to slowly add to this the cpi will come out on september 13th i don't usually pay that much attention to it, but i think it's -- next week, just one week from here, just this week alone we've have a number of major conferences. citi's glob tech conference. and what happens at they conferences is individual companies present on a thematic basis, tech or retailing, normally they don't move things that much, but thinks have moved a lot. a lot has happened in the economy. potential we could see some real reratings. remember, guys, still expect up 5% to 6%, but that's about half where it was about two months ago. back to you. >> bob, thanks, we'll see you in a bit. when we come back. jan hatzius willjoin us, talk

about the jobs number today. in the meantime, almost all s&p sectors are green. vix is back to a low

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good friday morning. welcome to another hour of "squawk on the street. i'm carl quintanilla along with david faber and leslie picker. we have a decent open on this jobs number, 315,000, although we're off the earlier highs. rick santelli has more. >> july factory orders, carl, we're expecting up 0.2, a big miss down one full percent that is the weakest number as a matter of fact that's, a, the first negative number since september of last year, but you have to go all the way back to april of 2020, which was the all-time low to find a lower number this is definitely not a good sign at this point, and the revision last month from 2% down

to 1.8 strip out transportation, no improvement, down 1.1% if we look at durable good odds, these are july finals, so this is different these replace mid-month reads. the july final read is down 0.1%, down if we take out transportation in this case, it discusses improve. a proxy for capital expenditures and spending it's one-tenth lower than our mid-month read that's a bit of a disappointment , mid-monday read.

it's notable in the dramatic drove since the 8:30 eastern employment report was out. we now out down seven basis points even down that much on a ten, we are still up significantly on the week leslie, back to you. >> lots of moves there, also slipping into negative territory. we are 30 minute into his the trading session. lululemon rallyies issues an upbeat outlook right now shares are up 1%, after a stronger than expected current quarter revenue forecast and mean favorite, bed bath &

beyond sliding again, down about 4%, setting it up for a possible fourth straight negative session. if you recall, the company unveiled a number of steps designed to shore up its finances why, in part, the stock hag falling unemployment rate kicks higher steve liesman joins us with some insight on those numbers hey, steve. >> carl, thanks very much. it was an unxwloip -- show a decent job, lower wage growth, and tick up in employment. take a look at the numbers here. unusually right on the estimate. there's been a lot of trouble on the wall street. on the payroll forecast.

average hourly wages down a tick that was another good numbers. it was a welcome pickup in that participation rate as you can see coming from about 800,000 americans powered by younger and older workers. it could provide some labor market slack that could ease wage and maybe inflationary pressures along the way. health care up 48,000. goods producing, retail up 44. leisure and hospitality as well at local government, somewhat disappointments there. as for the fed, there are parts in this report that they'll like

and won't necessarily love this could still be concerned. falling for 388, i think it was 386 after a check a bit ago. and gains for the week overall this one report is not going to be enough to -- fed officials have said repeatedly they have several month of better data before soliciting policy one month is not going to do it, guys. i'm going to talk crudely about

labor. the fed wants cars on the lot, if you know what i'm saying. you know when the dealer has a lot there's no negotiation going on, there's no slack, no excess labor out there. so what happens, when that's happened, just name your price as an employee get it back up to the and then the negotiation gets tougher you don't say give me 10% more we obviously want that, but we'd like to see wage gains at the level of productivity, not above it

>> i have a friend, leslie, who runs -- got a bunch of young people working for him on wall street, and he says i can't wait until i can tell the young guys to get their butts in the office. >> i've heard that one before. i think your friend is not alone in that sentiment. let's start with you, david, given what steve just outlined, the nuance involved, what do you think this overall means for the market >> i think it's positive, i think it's particularly positive for the equity market.

it doesn't mean we're out of the woods in terms of recession. but it means the federal deserve doesn't need to be -- average, pretty moderate, and seeing -- that really helping. you're seeing the economy adapting we could just get away with this in terms of avoiding resays, so i think overall it is good news. as david mentioned, this really is the best of both world for

the at the, as they continue to tout, given them cover to continue to raise rates, but at the same time it does move us toward those softening conditions that the fed has deemed appropriate or necessary in or to rein in longer-term inflation. this is not going to move the needle in and of itself, but it sets us up to looking out for those august inflation reports, should though come in weaker than expected t. showing two consecutive months of cooling pressures. or maybe even less, and forcing the fed to capitulate come september. >> david, i hate to ask you to put percentages on it, but i'm going to ask you to. i'm curious how much, in your opinion, this has increased your percentage chance of the fed

being ability to engineer that soft landing >> i call it about a 50-50 if we avoid a recession overall. one shock will put us into the drink here if we can avoid it, as lindsey says, it does make it easier for the fed. i still think the fed will go 75 basis points in september, but they can use data like this -- and not only do i think inflation will be flat in august, i'm also thinking it could be flat in september, also, so three mild inflation reports back to back to back, i think that allows of federal reserve to pivot its message so at the press conference jay powell may say there is better news on inflation, so we think the next increase could be milder that might be the pivot the equity market has been waiting for. >> lindsey, against these unprecedented macro backdrop

signs, bonds and stocks have been declining largely in tandem recently there's a classic 60/40 portfolio down 19% this year what is the best way to achieve diversification in this kind of environment? >> i think right now, response to the equity market and bond market moving in the same direction is more of a reflection of investors violently ping-ponging to one data point to one direction or another. as steve said earlier, one data point should not move the needle, should not cause investors to reposition that are portfolio. so right now i do think this is a reflection of an overreaction, as oy posed to a more rational investor scenario >> david, one question on europe i mean, we can talk about decent progress we're making here in the states, but just this week

boris johnson talked about how many pounds of sterling you can save buying a new kettle, and they could be see a 10% decline in disposable income do we have to worry about knockoff secondary effects from what may develop in europe >> a little bit from there, a little bit in china. i'm always suspicious when sun session a recession is coming in six months' time you werely recession is upon you. the germans are busy stockpiling natural gas for the winter, maybe it will be a cold winter uk will see a huge increase in energy prices, but when it's over next week, i strongly expect that the conservative party will do something about energy bills over the winter i think governmenting will react. while europe is having difficulty renot, i don't think it will be a huge recession.

overall, i think the u.s. still depends on the u.s i think the global economy is solve. thank you both for your perspective. appreciate it. >> thank you. >> anytime lululemon shares surging, results beat the street after getting a belt bag boost we'll tell what you that means, and what they're signaling about the state of the consumer. starbucks has a new ceo. we're going to try to pronounce his name properly and what his arrival means. >> more signs of a slowdown. new date on just how deep into a correction we are, as the market gets a little bounce on a day where bad news is good news.

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comfortable with the start of the quarter, and we have very exciting back half of innovation of product coming. we're cycling over some opportunities from last year if you recall, last year was september -- it's hard to believe it was only a year ago -- where we saw shutdowns in vietnam, disrupted a lot of our

flow of inventory, so we're excited to have that behind us >> that's calvin mcdonald yesterday with our own sara eisen. shares rallies after reporting the better than expected results. let's bring in a senior analyst over at wells, with a hold and target at 345. ike, thanks for the time today. >> hi, carl. how are you? >> good. thank you. we were talking about the rarefied air of retailers with a beat and -- >> first, let's give them their credit this stock has not acted well over the last 3 to 6 months. i think it's down 3x what the s&p is there's been concerns mainly on the inventory side

they're i think the concern we would have is, first off -- also, the inventory is still there. what we can so is the markdown cadence across the entire apparel space is worsening meaningfully right now i think there's some concern that eventually there starts to be a tipping point, but i would say that's really what keeps us sidelined here. >> so holidays going to be promotional, not necessarily clean, no matter how well you've been faring relatively to the space? >> i think we wrote about that in our post-second quarter state of the union i think the biggest negative in the space is inventory just to keep it simple, there's

way too much inventory on the soft line space. with the way we measure inventory, it's the most negative i've ever seen it in 15-plus years i've done this that's a lot a lot of them have to clear products today when we do our checks and talk to our companies, i do think there's risk that the holiday margins are still a bit at risk for 4q >> lululemon has faced several competitors. i'm surprised they're able to maintain such significant sales growth in light of that. what do you think we with attribute that to? >> again, you have to give them a lot of credit. i still remember calls we were taking five-plus years ago, how much pairs of yoga pants does a

ohm need think about men's, now over a quarter of the business. abc commission pants are now the norm in the workplace, if and when people are going to an office now footwear is starting to roll out, golf, tennis, hike, what they call secondary sweat categories time will tell, but they've been able to dovetail the brand strength into all these categories that are so far working with healthy margins ike, is signet the only guy you have, or are there others on our list >> no, no, i would say bed bath & beyond is aname we like we like up handbag face, we like far-fetched, burlington. the one characteristic you're seeing with our top ideas is

they kind of avoid the mall, they avoid apparel verall. our biggest concern. there's too much inventory, a lot of margin risks there. i feel like there's a much larger safety net there. >> it's amazing. we were talking about not enough not too long ago ike, good to see you again. >> thank you. star becomes haus hired a new ceo. kate rogers has the details. >> stair becomes announcing that laxman narasimhan will be joining starbucks. he's also been global c.o.o. at pepsico. howard shultz will stay until

april 1st, 2023, and will serve as a adviser through the calendar year of 2023 while remaining on the board of directors. schultz said, he's uniquely possessioned to shape this work and lead the company forward, and demonstrated track record. and analysts also weighing in, he lacks restaurant operating experience with he believe his appointment could set the stage for accelerating growth in emerging markets where the brand lacks material expectation that was echoed at cowen we are optimistic that mr. narasimhan perspectives will serve starbucks well into the next chapter schultz has been focussing on the reinvention for the brand of

the future, meeting consumers where they want to be, improving safety in stores, and the partner experience as the company faces down the ongoing union fight the likely more to come on investor day on september 13th we now schultz cares very deeply about how this goes. back over to you guys. >> thank you so much >> thank you. as we head to a quick break, getting a quick check on where the major averages dads on the -- don't my goldman's chief economist jan hatzius. quk scs.us "sawon the street" is back after this

major airlines are promising a better travel experience, as labor issues have led to thousands of flight delays and cancellations. this summer one regional airline is expanding its services.

andrew, good to have you this morning. what are you arts pating this long weekend >> thanks for having me. it's going to be a busy weekend, no question about it let's hope the weather is relatively clear, and that certainly would make life easier we're going to carry over 20,000 people off these coming four days, so we're going to be really busy. it has been a tough summer in all honesty, we haven't participated that as much as others it's been a challenge for many, we've had our challenges as well, going to and from florida in particular has been different, but for the most part we've delivered on or promises to you're customers.

>> we've talked in the past about a pilot shortage, raises in pay to get the labor you need what are you finding in terms of being able to satisfied your needs for pilots, and whether or not that's impacting margins >> well, yeah, look, pilots are earning more than they have in a long time. that's just the market at work we adjusted or compensation about a year ago we offer a very competitive package. and so we're in great shape there. we have 120 pilots we hire each and every month. we're doing a good job there as i started with, the pilots cost more, but that's okay everybody will have to deal with that you know, we're not a bad spot there, because we buy the airplanes, we're growing, the

airlines that are having a harder time are the ones withal smaller airplanes, but we're in a good place there i expect to remain there. >> so you're raising the pay for pilots there's also the aspect of higher fuel prices i know they have country down recently, but this year how do you keep price conversation consumer performing tickets to actually fill those big airplanes you mention ed giving the fact you brand yourself as a low-cost carrier. >> we are a low-fare carrier, but we offer incredible value. you're right, it makes it tougher. no question, it makes it harder.

and we're all adjusting to this new world where some of these costs perhaps are structurally higher we also have to be careful, because we do have to try to get more on the fair from the customers. look, i'm concerned about the consumer right now demand is holding up, but i'm concerned about the increase in everyday expenses and how that affects people's willingness to spend on travel i will tell you over the course of my career, we've seen this time and again, people will not giver up their trips they might travel a little less frequently.

>> i do think americans think it's a right to travel by air for a decent fare. back in the day, it cities were called i'll start there we over 19, $29 fares -- i mean aggressive on the high end >> well, you know, we did the best we can. we're carrying leisure customers, so broadly speaks, these are people going on trips that they don't have to take we

always try to get the fare higher we have to play the game of driving volume we're not carrying last-minute corporate customers. there's fewer of those these days, anyway. i like the northwest approach. that's what we do. we do things that others don't we try to offer new service, great convenience, and we have 31 of them now, we're growing every month. >> we have to leave it there thank you so much, have a great weekend. >> thank you you as well. contessa has the update. >> mississippi is restoring its

water system in jansen however, they still don't have water pressure argentina's president survived an assassination attempt the country's president says the attacker put a gun to kushner's head, and pulled the trigger, but it failed to fair. in ukraine, bur national nuclear inspectors, despite heavy fighting nearby. the shelling has been restarted. it does appear there's progress. guys, back to you. as we go to break, session

highs here, s&p holding 4k the jobsum nber is the story of the morning ahead of the three-day weekend. back after bubbles bubbles bubbles bubbles there are bubbles everywhere! as an expedia member you earn points on top of your airline miles. so you can go see even more of all the world's bubbles.

. u.s. labor markets hits a 120-month streak of job growth, recovering more recovering the jobs that were lost during the pandemic jan hatzius, great to have you happy friday to you. >> good -- same to you good to be on. if you look at payroll numbers, you know, in line, but revised down, also observing a somewhat softer, at least in terms of unemployment rate, broader measures, and then somewhat softer earnings. so i think this is consistent with stepping down at the next meeting from 75 basis points to 50 basis points. we still get a cpi that's going

to be very important, but i think if that's on the somewhat softer side as well, i think they could step down. >> on cpi, we also talked about how the markets condition now to goods, disinflation, certainly lower energy prices. how weak would cpi have to be to move your fed forecast further. >> i don't think it would move it further i would be very surprised if it was less than 50, but the debate has been between 50 and 75. >> what are the data points that you think the fed is looking at here some fed officials have said they're not paying attention to this, but as you look at things like average hourly earnings, lighter than expected average hours coming down, so clearly some lower wage pressure here, that has to stand for something,

right? >> yeah, i think both the cpi and the jobs numbers are the top tier report that have the biggest impact on decision making payrolls have historically been the most important now i would say they get approximately equal building i agree with the scenement most of what we saw today was on the softer say >> i do wonder and i asked this of brian deese as well, is the fed working against a more robust recovery in the job market, in a way >> i think the labor market is overheated if you look at the gap between job openings and understanding employed workers that's more than a 5 million gap, so labor demand has to come down. ideally it comes down through

declines in job openings rather than -- >> 11 million of which we currently have. >> that number has been coming down somewhat, though the last data point was higher, so that was a more hawkish piece of information, though if i look at the last several weeks as a whole, you know, with the cpi and slightly softer jobs report, i think it's a bit dovish. >> how do you fed the viewing these points >> well, i think it's in add addition. >> nick it can heart kay, it doesn't matter it could be in a different position, but i think at the moment, the way the signals are coming in is that we're more in

the sort of soft landing envir environment. >> were you surprised by what you heard last friday? >> i think he's saying inflation is still way too high, but one month 'number doesn't shif their views, so it is important what we see from the august cpi report and in the next couple months they don't shift their view as quickly. >> there was some work done yet looking at how flat cpi would have to trend to get back to, say, three, right? year on year like ends of next year, that's still your best case, isn't it >> two and a half for next year. that's what we're looking at we wouldn't get all the way back to two, and of course we want to

get back to two, but in the intermediate step, it would be a lot better and i think with the funds rate at that point higher than it is now, probably, i don't think they would want to do additional hikes. one of takeaways from jackson hole, for some, was the lack of agredisagreement are you looking for cracks it's amazing how some of the doves have heard more hawkish. >> i think they're pretty much on the same page far the near steps are concerned. i think there's some agreements disagreement about it, but not a lot. if we were to see a stronger cpi, but, say, more sides of deceleration, i think there

would be more discussion, but what we have seen the last couple weeks probably encouraging both sides of the debate >> we always ask you about labor force, and we got that moving a bit. >> that was another piece of good news. >> we'll dig into that the next couple weeks thanks, jan. >> thank you. whether we return, what chip name is cathie woodstocking up on "squawk on the street" is back after this quick break

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this is an exciting time, obviously, being in denver, you know, we have such an amazing team, but if you think about the national football league, they were saying a stat the other day, just preseason, how many watch preseason move than the

nba finals >> how many more season do you have >> i have 10 to 12 that would be the biggest goal. >> that's. >> that was russell wilson he was with us the last hour promoting, introducing a new product in terms of air purification, and one that apparently mr. wilson has embraced, butting saul as opportunity, brought it warm-up his wealth manager, who can we do here? i see a potential market void. >> it was an interesting partnership between the two of them he said it was brought to his attention when the heat wave got to be 105 degrees in seattle, and he says no one has air conditioners here, air quality is so important to health and safety what should i be investing in, looking at in terms of bringing

that to the forefront? that's how this partnership got started. >> a different approach from a year ago when players were jumping into nfts and crypto, wouldn't you saying? >> yeah, a lot more industrial interesting partnership. he's obviously well studied. he had a lot to say on it and being a denver native, he'll enjoy the mountain air. >> we are grateful for the ownership shifts and the deep pockets you need to secure a quarterback like russell willsent. >> that was a real m&a story. meantime, keeping our eyes on cathie wood's ark funds, on pace for the third negative week in a row about a month after selling nvidia, she picks it back up after hitting a 52-week low.

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. in a win for union organizers in california, the state senate passing a bill which calls on fast food companies to negotiate wages, health and safety benefits with employees. mcdonald's is calling the bill lopsided, hypocritical and ill considered joining me is mary kay henry so ab-257 establishes, essentially, a state council to formulate minimum pay onan industry-wide basis. how does this differ from safety standards already in place through laws on the books in. >> well, it allows franchisees, workers and government officials to come together at a statewide table to solve problems that have been pernicious on these

jobs for far too long. it's a egigantic step forward fo black and latino workers who see themselves as having been treated disposable during the pandemic and this table creates a way for their essential work to be honored and rewarded by government and their employers. >> the bill was opposed by the fast food industry and the u.s. chamber, which argued it allows unelected bureaucrats to micromanage their business what do you say to that argument >> well, they use similar arguments when the minimum wage got raised in 2015, and we've seen it work in being able to attract and retain workers in '15, '16 and '17 and i think that employers need to see this table as a way to jointly solve problems of worker shortages that they've been complaining about, and being

able to create good living wage jobs where workers can both serve the customers and provide for their families. >> you mentioned that the purpose of the bill was to right some of the wrongs experienced during the pandemic. but since then the job market has been quite strong, and we've been talking all morning about the leverage that employees have with regard to their employers in terms of things like wages and safety and so forth. have you not seen the market itself corrected some of the issues they experienced several years ago? >> well, what workers experience is that new hires come in at $2 more than the current workers in many of these jobs they also experience the high wages then being lowered after six months on the job to $2 less than hour. so the unevenness of the wages and benefits that workers experience in these fast food

jobs and across the service and care sector is what the sectoral table can address by creating consistent, predictable ways for workers to expect their income to be stable from one month to the next. >> we did see average hours cut during this month's jobs report as well, which would impact this group. mary kay, thank you so much for joining us today, appreciate it. >> thank you. >> we have had a bit of a correction in the once red hot housing market we're going to bring you new data, tell y jhoouust w bad things are getting "squawk on the street" is back in two

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welcome back to "squawk on the street," more signs that the once hot housing market is now sinking deeper into a correction diana olik has new data for us diana. >> yeah, and i want to start with what's happening right now in the mortgage market after pulling back through much of august rates are now shooting higher again, the average on the 30-year fixed spiked back over 6% yesterday the 6.23% according to mortgage news daily that nearly matches the high back in mid-june, and that high was what really set off the

tulback in demand that's accelerating now rates are rising on the concern that the road away from inflation will be more painful to the economy and consumers than once expected higher rates will exacerbate what we saw in august. new data from realtor.com showed august marked the first month in more than two years in which homes spent more time sitting on the market compared with the previous year. this is the inventory of for sale homes kept rising at a double digit annual pay, up nearly 27%, and this happened even though fewer sellers entered the market so in other words it's stale inventory. finally, listing prices, not sale prices, but listing prices fell 435,000 in july to 435 in august one in five sellers already on the market reduced their prices, a year ago barely 11% of sellers offered price cuts and we are now, of course, in september. not quite fall yet, but the start of the slower season for housing historically, one positive note, though, we are getting more data on the rental side showing rents are starting to moderate as inflation hits

consumers. and landlords lose that pricing power. back to you guys. >> diana, i'm curious if rents are moderating there was that mortgage bankers association statistic showing that the monthly mortgage payment was 1.5 times as much as the median asking rent in 2 q. how does that shift the dynamic as well for housing? >> well, it means that more people might want to rent again because they can't buy but it really doesn't shift the dynamic very much. it's just the way it's been. rents are still up about 10% year over year so while the gains are moderating it's still very expensive. you're not seeing any of the concessions that you were seeing right when the pandemic started, and in fact you're seeing just the opposite so right now for renters who might want to buy, perhaps it's a time to get in because it's less competitive. but again, the housing market is still incredibly pricey. if you're a first time buyer, and still renting, caught between a rock and a hard place, i hate to say it. >> perhaps it's good news for

the fed at least as it seeks to effectuate a slowdown there. diana, thank you speaking of which, the ten-year today trading about 3.2. nearer than we've seen the last week or so. >> a bit of a rally picking up with the s&p up 1% now that's going to do it for us on "squawk on the street. great labor day weekend to all our viewers. "techcheck" starts now good friday morning, welcome to "techcheck," i'm carl quintanilla, with jon fortt and deirdre bosa nasdaq seeing a first positive session in six what it means heading into the fall later on this hour. plus, a terrible week for growth names across cloud, cybersecurity as you know. we'll check in the ceos behind sentinel one, pager duty and smart sheets, three names sha have been caught up in the volatility about their outlook protect throughout the hour. dee, pretty interesting here as we were up 2.75. >> kicking off with that widely watched jobs