good morning, everybody. welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen and andrew ross sorkin who are having a conversation as the show is starting >> first time. yeah >> you can handle it >> and continues during the commercial breaks. >> i'm trying to pretend like i don't see you. let's take a look at the u.s. equity futures it is friday, we finally got here for the week all the major averages are up although the dow with its losses yesterday are only up by about 50.1% the jobs report will be the moving number, people waiting ahead of that, futures are relatively

flat dow up by just about ten points. nasdaq down by about four. treasury yields have been interesting. they have gotten even weaker as this week has continued. this all started with fed chair jay powell when he spoke earlier this week and the market interrupted his results dovishly ten year yield at 3.15%. and so as i said, investors are awaiting the november jobs report due at 8:30 a.m. eastern time economists are expecting that employers added about 200,000 jobs last month. that would be down slightly from last month remember the adp report we got earlier was weaker than had been anticipated. and we're in that weird point where bad news is interrupted as good news by the markets because they think the fed will hold off. so weaker jobs number, that bizarre wall street way of looking at things right now. you worry about the people

losing their jobs but wall street looks at it as the fed potentially taking a pause >> there isis a goldilocks numbr that is still good for jobs but didn't show wage gains we need to do moderate inflation, not job growth. in a perfect world >> but i think wall street looks at it as if more people are losing their jobs than the fed will back off and prevent further job losses because you know you are seeing some economic impact >> i still say ten year is backing the fed off itself and 5% pcx, food and energy, bad. 4% is better 3% might be in you have to eventually think that you get back to two or at least declare victory. >> i think you need 2% to their victory. >> should be heading the right way. above the 200 day moving average. dow in a new bull market

>> thinking the bear market rally might run a little longer, mike wilson. he is still calling it a bear market >> we should get the opinion of our old friend of squaugs who i saw you tweeting about, new head of the fed in chicago. austan goolsbee. he will have a good and big take on this very issue >> he is a reasonable -- i tweeted it out too >> in terms of where inflation can ultimately go. >> he never gets back here to have dinner, but now that would be like bribing a fed official if you were to pay off the bet >> that is true. you can't do it any more than. can you buy him taco bell tacos? a couple weeks >> i know we can accept taco bell if anyone is thinking about that out there i actually tweeted had out too he said he is a great choice

i have to. he is earnest and he is smart. i don't agree with him on everything and we bust each other's stones about a lot >> he is super smart >> a stone do we both own stones -- i'm referring to the actual stones, not using any pejorative but we both bust each other's chops. >> that is better. >> but i like him. and i think tait is a good choi. and a voting member next year. >> and they called him to see if he'd do the jobs panel today and he said he couldn't this time. >> didn't really say why >> he did not say why. >> pretty unbelievable now, we can't take total credit for this, can we >> how about none? >> well, i think it is more than none three times none what is three times none is it still snun it is still none come on, this is a big -- >> i think it is more than none but less than any.

>> let's ask him, damn it, next time he is on whether he thinks that we raised his credibility, visibility, and all abilities. >> let's go to the rail strike because that is the big news this morning it has been averted. after the senate passed a joint resolution by a wide margin forcing unionses to accept the current labor agreement and president biden says he would sign the bill to save the u.s. economy from the strike which could have cost up to $2 billion a day. a separate vote on adding seven days of paid sick leave to the agreement failed in the next hour we'll talk to outgoing senator pat toomey about why he voted against the rail bill. >> interesting a switch-a-roo there. >> i finally realized that i guess it had to be done, but i just can't -- the elected officials decided you are not allowed to strike. that is just weird

just weird it is part of a law. >> and the president had already appointed this advisory board -- >> i should be where you are >> this was a deal that 8 1/2 of the other unions had already ratified and presidential advisory board appointed by president biden had signed off on too >> but it seems like sick days -- i don't need seven sick days i don't even want accept sick days i use zero so i don't know why that is such a big deal just more vacation >> coming out of covid, it is a big deal they are being put under extreme conditions with precision railroading. they have had layoffs through the industry the last several years as a result and people feel like they are getting pushed on. but the problem is they shouldn't have ahead a 24% raise in pay and then come back later and say we want sick days. and i think that they do have at least one sick day put in on this and if you are sick for more a

set number of days, you do get paid i think more than four day, seven day, you do get paid >> just weird to see a bill passed that says -- >> it is twitter, this -- hard to even -- kanye, wow twitter has suspended kanye west's account after he tweeted an image that appeared to be a swastika inside the star of david. elon musk tweeted i tried my best, despite that he again violated our rule against incitement to violence account will be suspended. this is on the same day that ye appeared on a podcast posted by the info wars conspiracy broadcaster alex jones and he told jones that he likes hitler he also yesterday parler announced that it mutually agreed with ye to end his deal to buy that platform and the decision was made mid november he is wearing like a full body weird spider man outfit.

you can't even see whether it is him or not >> and the mutual agreement, i mean i don't think that he could have paid for parler so there is a mutual agreement why. beyond the -- there is an economic -- in addition to this other -- >> and of course the denial. pretty elaborate hoax. i don't understand that. is that just pure ignorance, what is it that can get you in that place how do you get to that place can you deny that the earth is round? >> there are flat earthers >> there really aren't do they think we don't have a space station that can look down and seat round earth see the round earth? >> i'm saying there are some weirdos out there that are not connected to reality and social media amplifies some of their voices. >> i mean, we'll never

understand kanye, but i guess he didn't like being -- he just keeps doubling down and going further and further. and so that is the guy he goes to talk to, alex jones >> who else could he talk to >> alex joins who told him to calm down a little bit if you've got alex jones telling him that -- >> still people saying that maybe there was a way back somehow for can kanye, but ther no way back now. >> nope, it is over. shouldn't be a suspension, it should be -- >> i don't even care about twitter. >> but i'm just saying at some point -- >> you can say what you want, but you can also be cancelled for saying whatever you want people don't have to choose to associate with that ever again >> farrakhan has gotten away with this for 3 years. and the ugly headreared again. and also elon musk kicked

off deliveries of the semi trucks last night. he spoke in nevada >> it is fun, it looks awesome, and you know, there is actually a big shortage of drivers. and so if you are a truck driver and you want the most badass rig on the road, this is it. >> tesla originally showed off the truck design in december of 2017 but production was delayed by the pandemic and battery cell supply issues. the first are going to pepsico musk said the range is 500 miles when pulling a load. >> we have a very big show ahead. coming up, we'll be watching crude prices and ahead of sunday's key opec plus meeting, what to expect need. and at the top of the hour, an interview with mike wirth you'reatinsqwkoxnd wchg ua b a this is cnbc

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click, call or visit a store today. welcome back opec+ will be meeting sunday to consider deeper output cuts. alliance will weigh the impact of a pending ban on russian crude exports and possible price cap on russian oil guess who is here to talk about this

rbc capital markets director, and also of course cnbc contributor. nice to see you. >> thank you for having me i should have been in vienna for opec >> so what is happening here >> i think opec decided that they did not want any media attention on this sunday meeting. there is so much uncertainty about what happens on monday with the eu sanctions kicking off. i don't think they want to be a p part of the narrative. i think that we'll see a rollover of the cut. i think everybody is waiting to see do russian markets come off on monday. >> and what do you think is happening? >> european ambassadors are still meeting trying t determine the price for this cap. there is still no agreement and the sanctions launch at midnight on monday. so everyone is saying we're getting close. but poland is holding out. >> i was going to say, isn't it just poland? >> it is poland, but they are saying we're in solidarity with

ukraine and we want a lower price. we can't allow russia to simply get current pricing for their barrels. and so the question is will poland be brought on board, is there some fix in terms of further sanctions on russia that gets poland across the line. but we have precious little time and monday it is not just an embargo on russian crude into europe, it is a ban of all western services >> when did opec ever worry about bad pr in this case, did they get stung when we said that they are enablinge ing putin? >> i think there was such a strong reaction in washington that i don't think that they were sbirplentirely anticipatin. i don't think they know what decision to make because they don't know how many barrels are off the market better to wait and see and then meet in january if you need to make some type of adjustment but they are dealing with the china story. and you don't know if

potentially on monday does one million barrels stop, is it two million barrels? because everyone will have to -- if you are a shipping company or trading house, you actually don't know right now whether you will have a price cap, whether you have the full sanctions. s it is a major policy decision. >> if the sanctions roll in, what will that mean? when you say a stoppage on all western -- explain that. >> this is rolling in regardless of a price cap or not. so europe will no longer take any russia sea board oil december 5 is key start day. so anything basically after december 5 has to stop and then there is a ban on provision of services. western services to move russian barrels anywhere in the world >> what does that mean russian services some. >> shipping, insurance think about insurance. 95% of the insurance for shipping is essentially done out of europe and london and so it will be very hard to underwrite these car goes. the price cap was designed to

allow western service providers to still move russian barrels as long as it was at a cap. but if there is no cap agreed, all those sanctions kick in. if there is a cap, you can still move the barrels but it has to be at that price cap or below. but the russians are saying we're not going to sell to anybody who provides by the cap. >> so if poland sticks to its guns, they get no cap and then what happens >> and all the sanctions come into effect. the full launch of embargo and what is essentially secondary sanctions. very similar to the type of sanctions on iran. and so that is why the u.s. treasury was very concerned about a major market disruption. >> and so let's say that scenario is what happens, then the price -- >> it will be significantly higher >> give us some ranges >> if you want to go back to that $100 plus scenario, it is essentially the sanctions kick

in and there is no price cap offset and again, people are very confused about the price gap confusing concept. it is simply to prevent a mar disruption by allowing an insurance provider to move barrels to asia. >> what happens if they do agree to a price cap, let's say it is $59 for argument's sake and then this happens but russia is easy it won't sell any oil. >> some people dismiss the russian threat but remember, the russians said we're not going to sell gas to in ib who doesnanybody who does pay in rubls and they carried through with that threat. oil is a bigger revenue driver for russia but when they say we're not going to sell to anybody who abides by the cap, i think that we have to take that seriously >> oil is a fungible property that can be moved to other places like india or china if they start doing that, does it offset the -- >> this is the question. if you have a ban on the provision of services, can

india, particularly insurance, can india continue to purchase russian barrels at current levels if you cannot access western insurance for those barrels. there is a shadow fleet, so obviously some barrels will make it to the market china takes a lot barrels by pipeline that won't be impacted but you could be talking about a million or two million russian barrels off the market depending on the decisions that are made today in brussels. that is why brian sullivan will be reporting from brussels on monday because this is a major decision coming down >> hopefully we'll see you on monday >> i'll be in washington >> we'll find out exactly what is happening >> you're in washington why? >> we want to get the fallout from what happens. it is big for the u.s. administration they have pushed hard on price caps >> thank you >> thank you >> back to the rating tools. coming up, layoffs at cnn.

that is a lara croft reference >> and harrison ford, indiana jones, yes >> that's right. and there will be some layoffs at cnn as the new ceo looks to overhaul the network's programming. details next and programming note of our own, don't miss the final day of pro week here on cnbc. it is real trades, real access and real money on the line live at 3:00 p.m. eastern

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hundreds of cnn employees were notified of layoffs yesterday as part of their ceo's efforts to transform the cable news network, streamline it, whatever they are doing. a source tells cnbc that the cuts amounted to a single digit percentage of staff, but there is also i think contributors i don't know if that is -- if that includes everything as part of the change cnn will no longer produce live programming for hln and will instead simulcast cnn this morning and that marks the end of a person named robin meade's show she she held the distinction of being longest female national host on national tv. >> she jumped out of a plane with george bush sr., remember >> together with him, no the because -- >> yeah, together with him

with a parachute yes. anyway, the supreme court will hear arguments in a case challenging the biden administration student loan debt relief plan in february. until then, a nationwide injunction will continue to prevent that program from taking effect the plan would cancel up to $20,000 in debt for millions of people who took out student loans, at least that is how it was written. the injunction will prevent that from happening between now and then and there have been a lot of questions as to the legality. when we come back, we'll take you live to beijing for the latest covid news out of china and programming note tuesday next week we'll be live in washington with a huge lineup of guests including the head of the business round table, ceos of honeywell, united airlines, many more plus union pacific, walmart, a huge show. we're looking forward to it. let's take a look at yesterday's s&p 500 winners and losers

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good morning, everybody. welcome back to "squawk box. we're live from the nasdaq market site. it is friday morning, an important friday because it is jobs friday. and we'll be getting that number in a little bit. ahead of that, you haven't seen much movement with the futures everybody is waiting to see what it says because it will potentially influence the fed. right now dow futures down by about 21 points. s&p 500 down by three, nasdaq by 16 it has been a decent week for the markets, all in positive territory for the week nasdaq is up by more than 2% after the 4.4% gain that we got two days ago let's get to eunice yoon after a week of protests in china, this has been the story we've all been kind of paying a

lot of attention to. and you have been covering it so well how do things feel right now there? >> reporter: becky, i don't know if you can see behind me, but there are a bunch of boxes behind this covid testing station. and i'm wondering because they have started to pack it up if you and i are going to continue to see these covid testing stations around the city beijing announced that it is no longer going to require negative 48 hour covid tests for public transport as of monday and it is just one of many cities across the country that have been announcing a relaxation of the covid testing requirements from the northern party is to the central chinese city of course known as iphone city and export centers in the south. separately, chinese official media have said that health authorities here have announced a hard target date to get the

very elderly vaccinated. this would be the end of january to get more than 90% of those over the age of 80 shot with one dose this is really up from 77% as of this week. part of the plan is to target nursing homes as well as senior tour groups. but no mention though of mandate for vaccines the other interesting development has been that the public has been quite relieved by these measures, but also there has been a mix of trepidation as well. some sellers of antigen tests and n95 masks have said that they have seen a jump in their sales as people look to protect themselves against what they anticipate to be a surge in covid. even though nationwide the numbers have actually dropped in terms of the new reported cases. but of course we don't know why that might be since so many places are not testing anymore

>> the same sort of, you know, time line that lot of places went through a couple years ago in the rest of the world i guess it is not overstating it, we've probably seen enough this week to say okay, this looks like the beginning of the end of the zero covid policy >> reporter: it looks as though it is the beginning. we don't know how long it will take for us to get to the end. because on the one hand, authorities are sending this signal, they are saying that they want to be able to relax the covid policy they don't say that themselves they say they are optimizing it and sticking to zero covid, but they are in fact in terms of their actions relaxing it. but there is a big fear about a possible uptick in covid cases and still a big question as to what the authorities will do at that stage, whether or not they would follow through with some very harsh lockdowns as they

have in the past or if they are much more nervous about the public pushback with the protests and how that all factors in or maybe at that stage if there is a crazy outbreak here, would the public go along with the lockdowns. so still a big question. >> the vaccines that are being pushed at this point, again, those are just the domestic ones, not any of the mrna vaccines >> yep absolutely there hasn't been any discussion at all about the importation of foreign vaccines or the production of foreign vaccines of course we know that pfizer, biontech has had a partner ship with a chinese company here. that that been around for years. but still no sign that china would embrace the idea of a foreign vaccine or foreign solution to their problem. >> and so we wait and see. y eunice yoon, thank you you've brought us so much

insight. we really appreciate it. and coming up, it is jobs friday and we'll talk tech layoffs after the break. and later we'll talk to senator pat toomey for the latest on the rail crisis that may have been averted. the ftx fallout and more and reminder that you can watch or listen to us live anytime on the cnbc app that is a nice shot of the suisatheapolnre t cit can help your business get a payroll tax refund, even if you got ppp and it only takes eight minutes to qualify. i went on their website, uploaded everything, and i was blown away by what they could do. getrefunds.com has helped businesses get over a billion dollars and we can help your business too. qualify your business for a big refund in eight minutes. go to getrefunds.com to get started. powered by innovation refunds.

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it is becoming more difficult for workers to find jobs especially in the tech sector joining us now with more on how to find a job is harvard business school professor, author of "the digital mindset, what is really takes to thrive in the age of data, algorithms and ai." and also jason greer, greer consulting >> do you have a feel for what we'll hear today we are seeing some cross currents, layoffs some places, jobs very tight and workers -- companies unable to find the right workers. what is really happening >> it is an interesting time

on the one hand companies are still looking for the right people, getting less applications than previously and still on the market for people on the other hand, we see many companies that are course correcting our r intervening or shutting down initiatives and doing a lot of financial retrenchments as well. and so applicants have to be very strong and the right set of lucrative skills for them to find the right jobs. and companies have to be careful about how to attract and retain the right people interesting times. >> jason, it kind of makes the fed's job a little harder i'd think. what part of the employment arena are they supposed to be looking at the layoffs that are coming, the shortages causing wages to go up

and add to inflation commodity prices can come down and housing prices can come down, but they are paying attention to the labor market and it is two different markets at least >> you can't get around the fact that inflation needs to be curbed because when you look at a lot of these companies doing the layoffs, they are doing them in advance of the looming recession. so the feds have to take a look at inflation, but i think on the other side, in terms of the job market, i think that this is also a wonderful time for employees to start being bold. if you are an employee sitting back and watching the new, you see your friends being laid off, you have seen what is going on in your industry, now is the time for you to start working on your network, now is the time to start working about your potential side hustle, now is the time to be bold because you never know, corporate america can be an ugly game and cutthroat. so you never know if you are going to be the next person laid off, so get ready for whatever

that might be. >> so where are we missing talent steve liesman did a three part series on how we have this great talent coming in from other countries, they get educated at some of our best schools and then they can't stay so is that an answer, is college always the answer or do we need to focus in on where the jobs are and specifically that type of technical chain ing training >> college is of course always important. but there is a movement.ing trag >> college is of course always important. but there is a movement. right now where skills, the right skills, skill based hiring, is increasing where you don't necessarily need a college agree but you need skills like coding, some statistics or data science type skills. a digital mindset for sure

so no matter even what your college background is, say you have a background in humanities, it is becoming increasingly important to speak the language of data, to be able to contribute in an environment where more and more automation is going to be taking over various parts of tasks so, yes, college will always be important but it will not be the only currency for people other digital skills will be more and more important to develop as a learning agenda for people >> and jason, you brought up kind of a troubling aspect of this so companies are expecting recession. so they start laying off people in anticipation thereby bringing on the recession not a great way to run monetary policy doesn't seem like >> it is a terrible way to run

monetary policy. and in 2021, you saw employers hiring more than they ever had in and anticipation of more people working from home so they o overinvested and it is not working out as people are moving back to the office so you have more employers laying off in anticipation of something. but i'll say this to the employers. if you are considering doing a law enforcement when you look at what has happened at cnn, when you look at what is happening in other industries and other company, if you are going do a law enforcement, please be humane about it. don't read from a prepared statement. because -- especially over zoom. people are watching. i live in this world that says i never know who is going to be my next boss. so let me be good to the people that i meet today. be kind to the people, let them know what is going on, let them know that you value their work but i don't care if it is over zoom or some virtual space, at least have the courage to look them in the eyes and say you appreciate them.

>> almost sounds like you described what happens when there is a shortage and people stock up on inventory, and then they have too much and all of a sudden it goes the other way so employees can actually be seen as i guess sort of corporate inventoryand then it is like a whiplash and if a nonthen that they describe that causes recessions to even be worse than they would have been because you just hired too many people in the first place? >> and i think so streeit is misplaced to think about the new way of work with which is the hybrid format as the area to blame for the strategic mistakes or the strategic overreach that

we've seen from many leaders and in many organizations. so this talking about remote work and hybrid work in this context is actually not right. it is about strategic priorities that needed to be pruned and honed. and what it means is for the companies, it is important to remember that you will hire again. and those who are not laid off who remain in your company, those who are survivors, are also watching. so the cultural problems that are going to arise or by how leaders treat people, how leaders create these strategies and cent them if they are not in the right places it is not about whether people's butts in seats are in a particular location or not we are past that >> isn't the real ity that managers are people too and it is a lot easier to lay off

people you aren't seeing rather than those who you have coffee with and you know about their kids just the realities of human nature just like we say meaner things on twitter than we ever would to someone's face when you are the person responsible for the 25 people you are in charge of to cut people who you don't have as close of a relationship with because you don't see them every day. >> 100%. >> i think that is very true there is this dehumanizing element if you are not with people regularly but let's be honest, when companies are cutting 10%, 11% of their workforce, it is not about the relationship with your manager. it is actual units and initiatives that are getting cut. people with incredible technical skills are getting cut as well and so, yes, i think that you are right, it is as easy to lay people off if you don't have the intimate relationship with them. the same way that it has been easy for workers to click here and join this company and click there and join that company.

but these are the realities today. developing relationships with people, whether it is virtually or in person are a set of capabilities that companies, individuals, are also learning so i just worry that we are blaming the actual arrangements of work for strategic decisions. and at the same time, leaders need these digital skills, workers need the digital skills. is this kind of the new era that we're entering so it is important to know how to develop relationships whether you are virtual or not and at the same time, you're right, the fact that people are not spending time together will make it easy for people to be flight risks as well as for people to lay people off much more readily. >> to that point, because i sit in the board room with these executives all the time and we've had multiple

conversations. especially here in the past year about potential layoffs. and i'll tell you this, i think that the point that was brought up in terms of if i have a relationship with an employee, i see that employee, i know that employee, i know what that employee likes to drink in terms of their coffee, that is an employee that i'm going to protect because that is what these managers are saying in these meetings i've heard it, i've seen it. and it is much easier to protect someone from a law enforcement w law enfor layoff as opposed to somebody that i see on a screen so we need to talk about the fact that when we talk about layoffs, human interaction matters and i know it matters because i've seen it happen over and over again >> thank you, good to have you on as usual. >> thank you. a little news and i think this one is fascinating turn of events florida and disney could potentially be mendi ing fences

state lawmakers are putting together a plan that would reverse that move or at least partially reverse it to strip the entertainment company of its right to operate a private government around its theme park could fix the fallout from the so-called "don't say gay" bill controversy. last spring they voted to dissolve the special tax district between the fight between ron desantis and then chief over disney over the state law that restricted the discussion of lgbtq in classrooms some believe the return of bob iger will pave the way for resolution and some lawmakers had been hoping to try to reverse this or do something in large part from an economic perspective because about a billion dollars of tax liability was going to get moved effectively from disney to the taxpayers. and so there was an economic issue here >> totally because it is iger

now. >> and if that doesn't tell you anything, he is clearly a politician he is smooth to be able to do this i wasn't sure how he could put it back together but he has been clear saying to the creative side of business i'll stand by your side. and if bob can -- if bob iger can over, that's worth the price of return right there for the company. >> interesting, though, right? >> it is if you read the -- people say now that the original guy, the one who screwed it up is gone, then they can go back and -- there's a lot of fence-mending going on for the next two years. i'm mending fences we need to be to be -- we need to come together. >> there have been talking that they wanted to -- >> they couldn't do it without him. >> might help them we'll see. >> he was chief, chief executive

officer which is kind of cool. there's a couple other one that is weren't quite as senior. we're going to talk to one of the finalists for the earthshot prize. we'll be right back.

the prince and princess of wales are in the united states for the first time in rating years to award millions of dollars of money to the earthshot prize. the award was started last year and he brings the year to boston for a specific reason. >> president john f. kennedy moonshot speech laid down a challenge to american innovation and ingenuity. we choose to go to the moon, he said not because it is easy, but because it is hard it was that moonshot speech that inspired me to launch the earthshot prize.

five winners will be announced each will receive $1.2 million for their events we're joined by one of the finalists who is co-founder of a company that makes sustainable packaging out of seaweed congratulations. i know you are somebody who is an engineer who worked on packaging for a long time. how is this packaging different? how does it work >> instead of using plastic and manmade material that is indestructible, we look at nature for the answer. seaweed has been around for billions of years. wherever it ends up in nature, it's never going to create in problem. we work with nature. the idea is to use things that are already part of the natural system so we don't create harm. >> the packaging is edible not that anybody would eat it, but how does it work >> we take some extracts from the seaweed. and we transform it into a range

of different packaging solutions. you can eat the packaging. it's like the peel of a fruit. you don't have to eat it but if you want, it is edible. we also use the seaweed as a coating for food service really a range of different products and we look at places where the properties of seaweed are suitable and try to eliminate as much single-use plastic as possible. >> if it gets wet, does it get destroyed? >> it's durable, but it's not indestructible mostly application for on the go c consumption. you use it for five minutes, but use a material that's going to be around for hundreds of years. that's why there's a mismatch. >> if you win the money from the prize, what would you do with it >> we're still at the very king

of understanding what we can do with seaweed a lot of r&d is necessary. we created a team, building more machines so we can push the properties further. >> i want to thank you for joining us today it's really interesting. you have the great design background and the engineering background from working in the industry before all of this and just so people know, notpla means not plastics. >> we cut down on the confusion around bio plastics. what we are is simply not plastic. and seaweed can be an answer for that. >> it's a new take on the famous line from the graduates, plastics my son. pierre, thank you, good luck come back and give us an update. >> thank you very much. >> thank you. coming up on "squawk box," big guest in the house i see him there already. mike wirth is here from chevron.

it is friday, and what the jobs report could mean. you're watching "squawk box" right here on cnbc and we are back in a moment

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site in times square i'm andrew ross sorkin along with becky quick and joe kernen. u.s. equity futures on this friday morning we have the report -- big report at 8:30. dow, though, right now 41 points now. the s&p 500 off about six points take a look at treasury yields that's also what's been moving equities all week since jay powell spoke on wednesday. the ten-year note sitting at 3.519. the two-year sitting at 1.2. take a look at oil talk about this opec+ meeting that's going to happen this weekend. we're about to talk a lot about oil in just a moment right now, wti, $81.33 a little more crypto talk. where is bitcoin right now in the fallout of -- >> 16,997. >> things have creeped up. >> every asset class has moved

you've seen the dollar move up more than 1% over that period of time, you've seen the yield on the ten-year come down. >> but the other assets didn't have three or four -- >> bankruptcy? >> front page article. it's -- making headlines this morning, a rail strike has been averted. the senate passed a joint resolution by a wide margin. it was like 80 15 or something. to accept the current labor agreement, president biden is going to sign the bill it could have cost up to $2 billion a day a separate vote on adding seven days of paid sick leave to the agreement failed and we're going to talk to pat toomey about why he voted against the rail bill in just a few minutes. tesla ceo elon musk kicked off the -- kicked off kanye, no, we're talking -- i really thought -- that's what i was going to say

company's first few production semitrucks last night. he spoke last night in sparks, nevada. >> using the trucks continuously day and night between here and fremont and back again is going to be -- is a great test of the vehicle and will give us a great feedback for continuing to improve the product. >> and the first electric semis are going to pepsico the truck has a charge of 500 miles when pulling a load. other elon musk news twitter has suspended kanye west's account after the rapper and fashion designer, among other things, he tweeted an image that appeared to be a swastika inside the star of david. musk tweeted, i tried my best. despite that, he, again,

violated our rule against invi incitement to violence and the account will be suspended. i want came on the same day that kanye west -- i'm not going to call him ye. kanye west appeared on a podcast posted by the info wars conspiracy broadcaster alex jones and kanye west told jones that he likes hitler i didn't know if i would ever read in a teleprompter. >> it is jobs friday investors are waiting this morning's november job reports due out at 8:30. economists expecting employers added about 200,000 jobs last month. that would be down slightly from last month >> and as we've been talking about all morning, there are several key dates that are approaching the global energy interesting. we have the meeting of the opec+ group that's there monday's date for eu sanctions on russian oils, also the potential for a price cap, a lot

of negotiating ahead of that and the expected refilling of the strategic petroleum reserve. a few things going on the next few days joining us now is mike wirth thank you for being here today. >> you're welcome. >> this is an incredibly tough few days and years for the oil industry what can you tell us what to anticipate >> it's unpredictable as we've ever seen. we've got the opec+ meeting on sunday a virtual meeting. price cap, sanctions set to go into effect on monday but not yet agreed to. at least the price cap for sure. of course, the market reaction, the reaction from russia and others to all of these things. certain things have been telegraphed or indicated how that actually plays out. hard to say. and that comes against the backdrop of the covid situation

that's ongoing in china. concerns about the global economy. this is a market that can really move in either direction and it's about as unpredictable as i've ever seen. >> what do you do in advance of something like that when you're the head of a global energy company. sit back and wait or are there things that you put in as potential price shock absorbers. >> we take the price of the day and as you saw during 2020, we took negative prices for one day there in 2020. we don't run our business based on looking at the window it's looking down the reoad. we focus on safe operations, reliable supply, protecting the environment, meeting our customer needs and our investment decisions really are based on the long term but we've had commercial activity, customers, trading activity in the same markets and so you are exposed to the volatility in the near term. we work to manage that and mitigate those risks it's part of the business that we're in.

>> amos hockstein said he's speaking with the heads of these companies. have you heard from anybody at opec+? >> i haven't spoken to anybody at the white house recently. but i have spoke to some of the people involved in the opec meeting and i think the decision to go virtual means there's less likelihood of kind of a circus around that meeting. i don't know if they can predict how this -- >> have you spoken to anyone at the white house this decade? >> yes, i -- >> so kwyou say recently -- you have had productive dialogues with the biden administration about how chevron conducts its domestic activities? you've had discussions >> we talk about a wide range of activities with people in the administration there's concerns about diesel and heating oil supplies to the northeast. the issues in ukraine, russia,

lng markets. >> the criticism that the biden administration has not reached out to domestic producers while it coddles foreign dictators, you're involved in the venezuela situation, does it come online faster is there a reason that the biden administration would prefer doing business with venezuela than maybe domestically? >> you would have to ask the biden administration look, we work with the administration on a range of things our goal of stable markets and prices that are affordable for the economy is something we share. how we get there, we have sometimes different ideas about that. >> when you said -- and it does take patience to be the ceo of a major at this point, patience and calmness and everything -- and stability. i don't know if you said that off camera i think that's okay to share that you do need patience in business at this point in time. >> it's a long-cycled business

different politics -- >> so the question -- and i guess you probably -- you may punt on this too when you hear the president say, we are going to end drilling ten days ago after he's saying we want you to increase production. if you hear the president say we're going to end drilling, do you take that as just sort of politicking and you don't really believe it or do you say, i'm not going to invest any money, because why would i do that from five years from now. >> we hear people say a lot of things >> so you discount it. >> you watch what they do. and we invest through cycles, we've received mixed messages, joe. you've got that right. >> will chevron be drilling in 2050. >> yes. >> your job is much more complicated than your predecessors just in terms -- it used to be an issue where you figure, where do i think oil prices are going to go and as a

result how much capex do i put in seems to me like it's a much more complicated series of factors that you have to kind of do the calculus on these days. it's political risks, pressure from your shareholders, esg stakeholders and the anti-esg stakeholders. >> there are more dynamics it's a bigger market trade issues, the relationships with countries like china, the changes in opec and opec+ all have created new dynamics. it's an industry that always has, you know, existed at the intersection of engineering and technology, economics and geopolitics. but the specific economic, technical or political issues continue to evolve. >> throw in putin. do you feel at times where you have to think beyond all this because for the good of the world? i mean, look at what's going to

happen in europe this winter after putin basically used oil and energy as a weapon if you hadn't -- if you had succumb to all the pressure to cut production over the last couple of years until recently, we wouldn't be supplying europe. do you think about that? there are developing countries that need energy for their people to be able to have heat and food is that on your shoulders, mike? >> we absolutely think about that, joe. >> you have to ignore the noise. >> we're growing production because the world is growing in terms of demand. we have to look at that well into the future and invest to meet that demand so we're growing this year we're up in the u.s. 15% in t the -- >> what do you think about the big asset managers i'm thinking of blackrock. you've heard what larry fink has said he's been big on lots of climate issues but this week was saying, look -- and buy, he would say he's been consistent in so far

he would say, if you really read these letters over the years, i always thought that we were going to need oil for a very, very long time -- >> he told you this week 70 years. >> and now you may say, whether you think that's consistent or not, consistent -- but sort of, how do you think about the influence that they have or don't have and also now you see push back happening from a number of red states and others, treasury, pension funds, louisiana just took $2 billion from blackrock i don't know if you think that's a big deal, not a big deal how does that relate back to you? >> i think larry's letters and perspective have evolved over time as the issue evolves. and the understanding of the issue, the understanding of the realities of the investment required and the pace of change has evolved in many different quarters of the discussion on this i think the reality that this is a transition, not a cliff, is something that certainly people are coming to recognize. one of the things i emphasis in discussions with policymakers is

there are three big things that matter when you talk about energy affordable energy is central for economic prosperity, reliable energy is essential for national security and environmental protection is essential because the world wants to see a sustainable planet we have to balance all three of these in our company we have to balance them in discussions with big investors we have to balance those in discussions with policymakers. if you overindex on any one of those, you can create vulnerabilities on the others that are unintended but can be very real as we're seeing play out in europe right now. >> chevron has indicated they're going to spend 15 to $17 million in capex what sort of signals would you need to see from washington and from other capitals of government to convince you to spend even more on capex to produce more >> so we're more capital efficient than we were before

the pandemic we've increased productivity so we're delivering the output, the growth that we had indicated prepandemic at a lower level of capital spending we're achieving the same goals with less investment which allows us to return more cash to our shareholders -- >> almost every analyst we speak to thinks oil prices are headed up i heard this morning, one of the houses saying 120 by the driving season next year we've had all sorts of scenarios for a $100 a barrel in wti if you think oil prices are going up and you think it's a safe bet, you would spend more to produce more. >> if we think they're going up for the long term, our investments don't pay out in the next six months, they pay out over the next 24 years to increase spending we would have a different view on the long-run commodities that we produce. at this point, we haven't changed our long-run views.

>> like everything, people go to their corners. to the department of defense to president biden to his press secretary, 9,000 permits the oil companies just aren't -- the prices aren't enough, they aren't doing it. they've got plenty to drill on on the other hand you read that there's been fewer leases granted from the biden administration, fewer leases than any time since eisenhower presidency is that just a knee-jerk sort of a -- is that just a talking point, the 9,000 permits, or -- what's holding back more domestic production? could you use more leases? is it hard to go to -- where would you like to go and grow right now where you can't? >> i said we've increased spending in the u.s. in the -- >> do you feel like you're being held back at all by policies

that were spelled out on white house.gov on the very first day of -- on january 20th in 2021 that said here's what's we're going to do. and a lot of it looked like it was going to put a damper on domestic production. did it >> we have been held back. we were the successful bidder in a lease sale that was then held up the lease sales have been at a much lower rate than we've seen historically -- >> it's impacting -- >> future exploration and production has been impacted by that we've had permits that have been held for a long time in places where we've had to move drilling activity to other locations where we were really to go on federal land in new mexico -- >> that's a red herring? >> i don't recognize the number. we don't have 9,000 permits. i don't know where that comes from. >> what about venezuela? the administration moved to open up venezuela for you to go back at least for the next six months what does that mean? what will we see >> i think it's a very small

step in a direction to explore the opportunity to, you know, change the relationship with venezuela. it probably means that we'll see some oil flow to the u.s. that currently isn't coming here. that's a good thing because the u.s. refining system on the gulf coast was designed to run that oil. but it's a short period of time. we've got to get people on the ground, we got to assess the situation. we got to see whether the license is extended and/or expanded before we put any capital into play. i wouldn't overplay the significance of that in and of itself. >> a 100 million barrels per day that the globe uses in oil it's really the demand picture that's probably more important right now than supply because supply is hard to increase you're looking at china demand, issues that happened with things there. how do you kind of just figure out how tenuous thingsare, how tight that market is, how important a million barrels here or there is. >> china demand is down. it's never really come back yet

from the prepandemic levels unlike the u.s. and some other places in the world where we've seen the recovery. there are a hundred million barrels a day is a big number. but supply and demand are the difference between two very large numbers. and so at the margin, swings of a million barrels a day, 2 million barrels a day can create a real response. the spr releases are coming to an end that takes a million barrels a day out of the market. chinese demand, if the chinese economy were to recover, would put a million barrels in, the effects of the price cap is hard to discern right now there are big moving parts this market could break hard in either direction and it's really hard to call any one of those, let alone the combination of them >> mike, thank you very much for coming in. >> how is your golf game and i don't mean playing, reading greens for the golfer in the family that you caddie for are you any better --

>> i'm on probation. i'm always working on that -- >> when you use your feet, you can feel some of the break in it that's just -- >> i can't share all of my secrets. >> mike's wife is a great golfer >> and i have seen you on the bag many times i've seen you on the bag. >> you've seen me with my bib on. >> do you have a good yardage device. >> in the tournaments that i caddie for her in, i'm not allowed to use the yardage >> you look good -- you look good in those bibs it says worth, but it's just -- >> thanks. great to have you on >> there you go. coming up the senate approving a bill to avoid a railroad strike. but our next guest voted against the bill saying congress shouldn't dictate terms nor intervene. the world is not perfect senator pat toomey is going to join us to talk about that crypto and much more before we head to break, let's

get a check on the markets "squawk box" will be right back. fore >> announcer: this cnbc program is sponsored by baird. visit bairddifference.com.

♪ coming up, senator pat toomey he's here in person. and then the co-founder of the

stablecoin tether reacting to sam bankman-fried's interview from the deal book conference. we're going to talk about it and count down to the november jobs report it's all straight ahead at 8:30. don't go anywhere. pat toomey right after this. >> announcer: time now for today's aflac trivia question. in honor of national bartender day, what is the top-selling tequila brand? the answer when cnbcsqwk x"onnues "ua ga-a-a-ap! oh... hi. what's this, a hospital bill? mm-hmm. for 1,100 bucks? ga-a-a-ap! looks like your wallet may need a sling too. tell me about it. did that goat say "gap"? he's talking about expenses that health insurance doesn't cover. eh-ehh-eh! well i'm talking about the money aflac pays to help close that gap. aflac, huh? aflac! ga-a-a-ap! aflac! gap... uh-oh! that duck can motor! get help with expenses health insurance doesn't cover at... aflac! ...dot com.

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>> announcer: now the answer to today's aflac trivia question. in honor of national bartender day, what is the top-selling tequila brand? the answer, don julio. is that your brand >> no. no, no it is not. the senate has passed a bill enforcing a tentative rail labor agreement. our next guest said he voted to extend deliberations and would prefer that congress doesn't play a role in the dispute joining us now, senator toomey

it's like, you get a union 20 years, maybe, the working man doesn't get a fair shake, that's the reason the reason we have unions they have some leverage. suddenly it's like congress decides and former union backers decide, hey, yeah, now that you've got some power, we're going to just pull the rug out from underneath you and legislate against it senator, you know that in the real world we can't let the economy shut down. >> i get that. >> what -- >> i think there was no great outcome here in terms of the choices before the senate. but one thing i'm pretty sure of, it's a really bad idea for congress to reopen agreements and decide to nitpick on individual provisions. how do we know the relative importance and what concessions were made on any given particular item. and you saw bernie sanders' amendment to create eight paid sick days or something

it almost passed and the more congress gets involved in settling these kind of disputes, the more ridiculous the outcomes are going to be i have no idea whether that's appropriate policy on top of the other paid absent days we shouldn't be in this space. >> let's say everybody had gone along with you and things shut down, is that what you wanted -- >> no, that's not what i want. >> you're able to have a principled vote because you know other people -- >> what i meant to say, a strike is not what i wanted we don't know that's what the outcome would have been. the failure of congress to force the agreement might have caused the two sides to change their relative negotiating positions we don't know. >> you really wish that it had been -- it had not succeeded >> yeah, and then we would be -- there would be an awful lot of pressure on these guys to come to an agreement. >> what if it actually shut down the railway system and did that to the tune of $2 billion a --

>> at some point we would have to intervene i get that i think it's important to make the point that this is a bad direction -- >> do you consider your vote symbolic >> yeah -- >> he can do it because other people weren't doing it. >> this was clearly going to pass and they had the votes. i'm trying to make the point that congress shouldn't be the one deciding the terms of employment between two private sector actors. >> we want to go to crypto and ftx. initially i was thinking, so fetterman is taking your place are you glad you retired you think that was a -- can you take it back >> i'm glad to be retiring i have no regrets about that decision the outcome in my state is not what i had opened it would be -- >> you're still young. i hope you got some good plan -- what are you doing that's so great? >> i have no plans the last thing i wanted was to

have a conflict of interest. no discussions, no negotiations. we're about four weeks away from the end of my term at that point, i hope to have lots of conversations. >> are you going into crypto >> i don't know about that >> kidding tell us about what we need -- what happened there? did we drop the ball in this country. >> you've always liked crypto? >> i think the underlying technology is fascinating and very powerful. i think of these protocols as operating systems on which people are developing all kinds of fascinating programs that are going to allow us to do things that we've never been able to do before so what i want is a sensible regulatory environment so there's certainty you're not breaking the law, you know whether or not your project involves a security, so you know whether or not you got a problem with the s.e.c i've got a stablecoin bill that's a kind of simple disdcree part of this ecosystem but the failure of congress to do that and of the regulators to

provide clarity is part of what's driven activity offshore to places like the bahamas where you don't have the consumer protections that we would take for granted here and here's the other thing that's really important which is why i would like to do a hearing and bring them in, i have colleague who is are choosing to use this explosion as their opportunity to blame crypto and paint this whole ecosystem with one broad brush. this is about the outrageous behavior of an individual and maybe a few individuals. but it's nothing to do with the underlying asset we've seen this play out how many times with -- >> it depends on what we think happened inside of ftx part of it may very well have been this comingling of the assets -- >> it looks that way. >> which unto itself would be a problem and a problem whether it was crypto or anything else. there's a secondary issue which is the way in which some of these currencies have been used

as collateral, whether they're currencies at all, the way the float worked, how they -- and so -- i do think there's some underlying questions about what these things even were >> or how they're used, right? i mean, if -- yeah, the ftx -- >> the ftt. >> very dubious value. what's supporting that, what's the underlying reason why there's value in that token. i would be very skeptical about it i'm skeptical -- >> here's the question if the u.s. looks at it -- looks at the ftt token and says, we can't deal with this, then it's going to live in the bahamas, right? >> no, i don't think so. i think -- first of all, our regulatory regime should be about disclosure making sure that investors understand the risks they're taking and you let them do what they're going to do. it should not be to protect

people from themselves if we had that kind of clarity, there would be lots of options in this space where people could participate with sensible, regulated companies and i don't think these offshore projects would be as successful >> the issue with what happened at that exchange, you think there were crimes committed here >> so i'm not a lawyer i think so but it was offshore and so the extent of the jurisdiction of the s.e.c. is a question in my mind likewise with the justice department but it certainly looks to me like had this been done in the u.s., there would be all kinds of crimes. >> if we were to regulate in the united states, who should do it? is it the fcc? >> that's a challenging question in my view on stablecoins, i don't think that is the realm of the s.e.c. i think the occ is a more appropriate regulators and my legislation contemplates that.

i think some tokens look and are used like securities and they probably ought to be regulated by the s.e.c truly decentralized platforms where there is no central authority, there is no intermediary, there is nobody in charge because it's software that was released onto the web, that doesn't look like a security to me >> what about just the exchanges themselves there's so much investor money that's stored up here. it seems like just the s.e.c.'s purview of protecting investors -- >> i think you could make a good case provided that we set a separate set of guardrails because there's a lot of things that are different about crypto, right? settlement and custody, for instance it's obviously very different than, say, stocks and bonds -- >> just the idea that you shouldn't be able to comingle funds. >> there's basic -- >> having some -- just some sense that, yes, my money is safe here because you had some big investors, sophisticated

investors that got sucked in by some of this stuff. >> i think you could have a set of very commonsense trading regulations that we would all agree on >> senator, the political landscape affects the economy and business news. stop the presses i'm going to lead into that. i think of georgia the first time around and if that had been different and the laws that had been passed since then, think about that they had vice president harris had to break the tie for the 50-50. >> right >> has the republican party crossed the rubicon in terms of donald trump >> the way i think about it is, i think it was always very likely that president trump's influence would wane frankly it wasn't -- >> it was like nine lives. >> it was waning prior to the election i think the election of last month accelerated this process.

>> you have republicans saying i'm tired of losing. >> and that's a big problem. and as we chatted briefly earlier, the data is overwhelmingly clear the ultra pro-trump candidates who are all about election denial and re -- >> no one knows that better than you. >> those guys went down in flames and often at the same time that in the same state on the same day, a more conventional republican -- >> do you think mccormick would be senator in pennsylvania, andrew >> possibly. >> so i think dave mccormick is a great guy. i think dr. oz was a good candidate. the problem we had in pennsylvania, the top of the ticket, the gubernatorial nominee -- >> whatever you want to blame it on. >> he lost by 15 points. in pennsylvania it's a blowout if you lose by nine. we're a narrowly divided state with that much head wind at the top of the ticket, it did damage all the way down the ballot.

there were three house seats we could have picked up >> you had this viewpoint for awhile and i'm just wondering -- that was what my question was, this time is it different? >> i think so, i think so. i think so this time it's just so clear it manifested in so many states. >> do you think that -- do you think -- spoiler, do you think that would become a role >> i don't know. who knows what donald trump is going to do. >> what do you think would you ever say anything like i'm going to -- i see this as probably not the way i want things to go for the republican party or the country, so i'm going to step aside? could you ever see the day when that -- >> not for that reason if he came to the conclusion that he's not on a path to win, i think he might find a reason to get out rather than go ahead and lose he probably figures he can't pull off the story twice >> all right you want to be a cnbc contributor after you leave.

>> and negotiate these things. >> that's right, all right, all right. you're right r i take it back >> the red light is on the camera >> senator pat toomey, thank you. >> thank you when we come back, the co-founder of stablecoin tether on sam bankman-fried, crypto fallout and so much more you don't want to miss this, the final day of pro week is here on cnbc you can get access to interesting advice it's live at 3:00 p.m. today is rhtacafr ig bk te th

welcome back to "squawk box. these are your morning movers. marvel technology falling 5% the semiconductor maker missing on the top and the bottom lines for its most recent quarter. cash from openings well below estimates and fourth quarter outlook weaker than expected doordash with a downgrade. you can see shares are down 2.5% right now. the company sited a slowdown and uber eats gaining market share in manhattan

however, dash outperforming over the last month shares are up more than 23%. now to an area i cover, tesla moving higher in the premarket, up almost a half a percent right now after unveiling the tesla semi they began producing the trucks this year. last night elon musk touched on the near record trucker shortage and gave some colorful language about the semi take a listen. >> it's fun. it looks awesome and there's a big shortage of drivers and so if you're a truck driver and you want the most bad ass rig on the road, this is it. >> they're underperforming the nasdaq quarter to date something to watch joe, back over to you. i want to say to andrew really quick, amazing sbf interview just amazing. >> thank you, frank. >> or should i call you u.s.

attorney sorkin. it was pretty intense. >> we'll see >> a lineage of great attorneys in the sorkin hemisphere, is there not? >> we like to think so daddy sorkin. >> that's right. >> coming up, a check on the markets ahead of the jobs report and then the co-founder of stablecoin tether on the downfall of ftx. the future of digital currencies tuesday, a very special show, we'll bring you interviews of some of the biggest names in business including -- look at this -- >> those are big names. >> i don't have to mention them. you know them, you love them. >> you have to >> mary barra, doug mcmillon, jamie dimon, that is tuesday morning. >> and greg hayes. >> i was looking at -- greg has lost some weight

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the holidays are here. and dick's sporting goods has the best gifts for the whole family. like the trendiest styles from calia. the latest looks from vrst. and dsg is a great value for everyone on your list. shop in store or online. every holiday starts at dick's. welcome back to "squawk box. the futures this morning have been really muted ahead of that jobs report. you're going to see right now, the dow futures down by about 5 points, s&p futures down by seven one-hundredths of a point and the nasdaq off by five points as well everybody is waiting to see what the jobs report shows us in less than 45 minutes of time. florida and disney could be

mending fences state lawmakers are putting together plans to reverse a move that would strip disney of its right to operate a private government around its theme parks. this could fix the fallout from the some have called the "don't say gay" bill. last spring, the florida legislature voted to dissolve disney's special tax district after a public fight between governor ron desantis and bob chapek over state law that restricted discussion over lgbtq issues in classrooms the ft says that some believe the return of bob iger will pave the way for a resolution the state legislators had an issue coming up with the tax revenue that would have been lost -- >> reality was -- it made zero economic sense and it was all about political retribution which we talked about. >> andnow that seems like it

will be -- >> it's incredibly important. >> i'm willing to consider a lot of things. for us and just everywhere. >> that's worth it to the board of disney and to the shareholders -- >> i'm glad he's going to be the chicago fed president. i'm living the brooks mantra. we're going to talk about sam bankman-fried's comments at the deal book conference and the next hour the focus is on the jobs report. we'll break down the november numbers and get instant market reaction "squk x"ilbeacafr awbo wl bk te a quick break. for skin as alive as you are... don't settle for silver. harness the power of 7 moisturizers & 3 vitamins to smooth, heal, and moisturize your dry skin. gold bond. champion your skin.

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for day and night streaming. more speed you need when you're work from homeing. and more speed you need as your family keeps growing. check in on your current speed through the xfinity app today. want to get to the fallout of ftx and sam bankman-fried's comments stablecoin also serious risk tether lending its own coins to customers. joining us is the co-founder of stablecoin so many questions are being raised in the aftermath of the failure of ftx

i want to get so much the questions around stablecoin itself if the whole idea around crypto was about trust or at least creating trust -- what do you think this ultimately does to the long-term sense of where this space is going? >> well, that's a great question because se den realization is a core tenet of what blockchain offers, it increases the difficulty to use the platform, centralized actors such as ftx and other exchanges that make it easier to use. there's a customer service number for them to call when you that centralization things like this current happen, so we have companies like this that can collapse >> so, let me ask you as it relates to tether. about the trust issues if you will because i think there's

skepticism, questions, i think the questions that have sort of come from the fallout of ftx have been put on to tether, questions about tether for a long time, two sentences from the wall street journal. tether which is incorporated in british version islands doesn't publish or completebalance statements leaving outsiders with an incomplete picture of the company's health there's a gentleman the president of crane data said i've been skeptical that they, you, can get away with lack of disclosure and limited transparency, if you have reserves why don't you show them so i'll ask you the question, why don't you? >> in the last eight years of tether's operating history, they always redeemed every token for one dollar

the principles have continued to operate that in my opinion to the absolute best of their ability and with the best risk mitigation tactics in the industry >> so why do you think then the questions persist as they do as what's really going on and what's really backing these stablecoins? >> tether does offer on its website proof of its reserves or actually audits every few months on where all that cash is currently being, how it's being investigated right now, people still question it and these questions are okay and the industry as a whole is going to be become more and more transparent due to these recent failures of ftx and these other companies that's really good for the industry moving forward. >> so you think actually stablecoin or rather i should say tether will be ultimately be forced to disclose what backs

these coins. >> let's see how these regulations play out, right now with the house co-- republican controlling the house, it's going to take time also leading the charge in what it looks like to offer up proof of reserves. >> i want to go back to idea you think the industry is great at self-policing. a whole number of failures in the last two weeks and obviously the blowup of ftx is the big headline, you think that the industry has done a great job of self-policing i think about all the venture capitalists, who put money in i don't think they did any real self-policing ze may have self-policed this. the press did a pretty great job

of breaking the story. >> an excellent point the crypto industry doesn't have a government or anything else to bail it out. in order to survive the long term it has to do a better job of self-policing we'll have to come together to provide consumers the confidence they need and to do that in the future it will lead to more decentralization mean less trust of these centralized actors because it's going to be done in code >> so, do you think long term these exchanges and i'm thinking obviously ftx was one of them, finance is another one, coinbase is publicly traded company here in the united states and as a result probably the most regulated of that group. >> yeah, absolutely. i do believe that's why coinbase and the companies that are

regulated in the u.s. they have to meet a higher bar, they have to do much more than these other offshore companies so as investors especially in the u.s. if that makes you more comfortable absolutely follow the companies that follow that, that are more regulate dmrd were you in shock over what happened at ftx >> i think the whole industry was in shock, even believe sbf was in shock, now he has to shoulder that burden, he's responsible because he was the ceo so he either committed gross negligence, terrible management, either one of those should end you up in jail >> how concerned should people be about using these exchanges there's coinbase as we discussed, there was ftx.us

we'll see what happens there and a lot of fol, you unfortunately using vpns and other things that are going offshore >> so to utilize the exchange that's not so risky the risky part is keeping your money on the exchange, people are using these exchanges as a bank account, lots of people had all of their deposits their entire crypto net worth on the ftx, so in the industry it's been known since day one don't keep your coins on the exchange, you want to keep them in your own wallet. make your trades -- >> it's a longer conversation, we do appreciate you joining us this morning thank you. >> yes, thank you for having me. i really appreciate it when we come back the november jobs report is just over a haplf an hour away, we'll bring you the numbers and the

instant analysis as soon as that data hits the wires. dow down by about 10 points. s&p down less than by one point. stick around this is "squawk box" you're watching cnbc

good morning it's jobs friday in america, we're just now 30 minutes away from the big number. we'll be standing by for investors' reactions from equities to fixed income, meanwhile president biden set to sign a bill that would head off a national rail strike we'll bring you the details and debate about it in just a moment and a half a decade after tesla unveiled its semitruck the first one has now been delivered >> if you're a truck driver and you want the best badass rig on the road this is it. >> we'll tell you what we know and what we don't know about the big rig. final hour of "squawk box"

begins right now good morning, and welcome to squawk box here on cnbc. i'm already tired we've done so much today. and we have the jobs report. >> we do, 8:30. >> which means, like a six box, you can't get decent analysis with five people i'm joe kirwan, along with andrew -- >> you were tired. your caffeine has kicked in. >> i was a little tired in the 6:00 hour. it's friday. it's been a long week. >> we all deal with mood swings. >> we deal with our own and each

other's. >> i feel like punch drunk because so much. >> u.s. equities futures, we don't know what to do with them this morning because two days ago we saw what happened, huge yesterday -- huge. bigly gains. two days ago not so much we did see i think at least treasury yields now 3.5, food and energy i don't know i felt better about it, you know >> if it was ten basis points -- >> the professor was here. >> ten basis points less was 4.9. it seems like there's some progress to be made. >> happen with 5

>> i'm not really happy with 5 >> joe, you're the math wizard you're the guy who corrects -- >> it's the same distance from 2 as 8 >> not less but it's not more. >> i guess so. >> not on a percentage basis. >> you brought me in not me. >> right >> another issue credit card debt >> some questions about this economy is going to fare in the next few months other stories investors will be talking about today, the senate passing legislation to avoid a national rail strike, president biden urged congress to pass that bill, 15 senators voted no including retiring pennsylvania senator pat toomey, he joined us on set in the last

hour >> i think there was no great outcome here in terms of the choices before the senate but one thing i'm pretty sure of it's a really bad idea for congress to reopen agreements and decide to nitpick on individual provisions. >> toomey also said he realize it was a symbolic and it was going to pass. president biden wsaid a rail shutdown would devastate the economy costing about 2 billion there are a day for the united states economy a key earnings mover this morning, shares of chipmaker marvell are down fell short of what the street's expected said customers' inventory reductions are hurting results that stock is down by about as 4.5. >> tired of sequel after sequel.

not marvel >> can't they come up another -- >> they're not for you, joe. they don't care about you. >> they don't. >> you're out of the demo. >> on everything fed news that hits back to home, university of chicago's austan goolsbee will become the next president of the fed, chairman of the economic council of advisers, he's been a regular in our jobs -- >> that was not a good scene, remember -- >> nothing we could do. >> we already took credit for getting him this gig and we're

also saying we want payback. >> don't even joke about that. he's not going to do that. >> he'll come on here. >> he hope he will >> you'll do the necessary nurturing. >> i don't want to speak for austan as the chicago fed president i can speak for austan as a guy i've known for a couple of decades >> mr. goolsbee. oh, geez, no more kidding around >> let's get back to the broader markets ahead of this hour's jobs report. mike santoli joins us. >> reporter: joe, market kind of did almost exactly nothing if you look at the s&p yesterday maybe held on to big rally we had the day before and basically 17% above the intra-day low.

the moment of truth may have arrived. tactical rally that could fizzle this long-term downtrend even the bear's down here in early to mid-october, the market is oversold, we should rally here, upside targets in this zone of 4100 to 4200 the august high is about 5% to 6% above here in the overall s&p, going back to this level where we were seven months ago, early may when the fed's funds rate was lower, so you can look at that and say the market is showing great resilient or rick/reward isn't as good because we're at these levels and things are looking dicier in terms of probability take a look inside the indices, really close to its august highs, the very largest

stocks, the biggest 50 stocks basically in the market, s&p is down less than 10% at this point so you seen it's been mostly a top-heavy decline overall and take a look here at gold versus the dollar, huge compression in treasury yields, past the peak inflation scare, that's what the bond market is it's also brought the dollar lower that same the last six months of the dollar and gold, so essentially, the dollar is the antiat this time to me that's mostly what you're seeing right here when it comes to this recent move in gold, joe. >> yep, pretty nice move there, that we've seen that's also i don't know sort of maybe pointing fingers at some type of

second derivative change in whether interest rates -- what interest rates are going to do, mike. >> real yields are lower >> dollar, all those things are sort of, things go further than they were before but in this case maybe some type of actual change, thanks, mike >> okay. it's officially time to get to steve we didn't formally do the whole thing he's now here, he's joining us on set because today is friday and we have a big number let's see how big a number it is >> here's what's happened the jobs report has become an inflation report especially after fed chair powell's speech

this week as fed looks for slack in the labor market and bring down inflation non-farm payrolls, still 200,000 a robust number, but down from 261,000. average hourly wages have come down, 4.6 year over year was 4.7% here's what we might call powell's inflation barometer, he talked about three types of inflations, kerr goods, housing services and core services, he think that's going to exert housing prices it's the core services ex housing up, that's the biggest category of all and half of that category the cost of wages, the trouble in jobs is all the announced layoffs on the one hand against the jobs markets

and the shortage of labor. our friend ian shepherdson from pantheon says -- weakingening in the wake of the fed's aggressive tightening here's an example without the 224,000 jobs added by leisure and hospitality the adp report this past wednesday it would have been negative he thinks the fed eventually wins out here with rising unemployment and people losing their jobs not this month when payrolls should be robust why powell has said, guys, the fed still has a long way to go >> tell me, though, what you think is baked into the cake and what if he sees a number, i mean, the proversion of it a

really good number, a really bad number, you know what i mean this happens every month >> the different question, what's clear to me, what's not baked into this cake this is one month and this is going to be a process where he'll have to see slack develop over time, the market keeps playing this like it's football game, wind up, run the ball and figure out the result at the end. where it's back and forth. it's going the take time several months of inflation coming down, several months of labor slack developing and you'll have to watch it over time the progress andrew we've had has been incremental >> football game, or some people in europe would say a real football game. >> today, with netherlands tomorrow we talked about that. >> thank you, steve.

>> i watched so much soccer and i haven't seen a goal yet. i turned it off at the wrong time i watched a couple, three hours of soccer -- >> if first half there was a lot of almost -- >> a lot of almost goals >> against iran. it turned out okay >> i wanted iran -- >> you wanted them to what >> because the team there has been protesting the government -- >> that's right, that's right -- that's right >> i don't know. >> are they going home >> i'd go somewhere else and sneak -- >> they're good players. immigrants shortage here >> skilled workers >> so tomorrow, what time is it? >> 9:00. >> netherlands >> 8:30 this morning before we get to that

though, a critical few days for the energy market. we'll talk about what to watch at this weekend's opec meeting what he's watching in brussels as well. a reminder for you don't miss the final day of pro quick here on cnbc live at 3:00 p.m. eastern today. , so you know all you need for recovery. and you are? i'm an investor...in invesco qqq, a fund that gives me access to... nasdaq 100 innovations like... wearable training optimization tech. uh, how long are you... i'm done. i'm okay. power e*trade's award-winning trading app makes trading easier. with its customizable options chain, easy-to-use tools, and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are.

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end that takes a barrels out the day. the effective sanctions and the price cap is really a very hard to discern right now so big moving parts which is as i said earlier this market could break hard in either direction it's hard to call. >> that was the chevron ceo with us earlier on the show we're entering a critical time now for the oil markets. brian sullivan joins us now to lay out what's ahead, we've got this weekend, we've got monday, a lot is coming at us. >> yeah, i think mike worth, who knows more about the oil markets than him pretty much nails it. we've got the opec meeting on sunday, yeah that's virtual because they went virtual that means they're not going to do anything, i wouldn't be so sure

they may keep their output quote the same, based on clues and chatters that there might actually be a cut coming the big variable of course is this idea of a price cap, now opec is on sunday, on monday the eu sanctions on oil, that's basically a ban on financing or insuring all cargoes of russian oil, here's the dirty secret, guys, there's still russian oil still coming into europe, there's a lot of oil coming in from trading firms who buy the oil and then resell it, this ban on basically being unable to ship, cut off all russian oil, there are some refineries in europe that as of right now don't know where they're going to get crude oil to make diesel or gasoline in a couple of days one in germany and one in italy,

then you've got this price cap idea which is kind of like, it's still being debated we kind of hoped by now we would know where that price target is going to be, probably around 62 to $65 per brent crude, well, okay, that's 20 bucks below the price right now. but it's being sold in the high 50s so the price cap may actually be set if they actually get one, guys, above where the price of most russian crude is already being sold which if you're russia and you're selling your oil for 59 and a price cap is set for 65 guess what you do, guess what, my oil is now worth 65, you wonder if they can raise the price of their oil this market could really break hard in any direction. >> just tell us, though, exactly what happens on sunday, what does that conversation actually

look like? >> oh, gosh. that's not an easy question to answer, andrew, so poland wants a price cap at $30 they don't want any russian oil being sold, poland up against the border they're in it more than anybody else they're still debating it. there may not be a price cap i'll tell you something about this, the eu sanctions that kick in on monday there's a lot of talk that there's going to be a number of exemptions, there's a refinery in sicily, italy, which is owned by russia, now italy's trying to fa nationalize it but they're also trying to get an exemption to keep funding that refinery with russian oil otherwise they have a huge problem. germany, their biggest refinery they don't mow where they're going to get half of their oil many five days from now if there's cutoff

the sanctions when they go into effect on monday, still an if, but there may be so many carveouts. listen, next week we're going to be live in brussels monday, we'll be live in rotterdam on tuesday and wednesday, talking about sanctions and the price caps and the role of liquefied natural gas. it could be a big week for energy next week. >> brian, want to thank you, wish you luck this weekend and of course we're looking forward to seeing you talk and getting all of your analysis on monday >> thank you when we come back, the november jobs report is coming up in a couple of minutes. instant market reaction. on tuesday, we're going to be live in washington, d.c., huge lineup of guests

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when we come back the labor department's november employment reportlu ps instant reaction from our all-star panel. stay tuned "squawk box" returns after a

quick break.

welcome back to "squawk box" less than a minute from the labor department's november employment report the futures

now down on the dow by about 50 points or so and nasdaq down 22, even the s&p, the treasuries, can see some action, 3.51 on the 10-year and two-year, still have that inversion still about 70 points. now time and it might take a couple of seconds to get the real important numbers rick's going to do it for us hey, rick. >> joe, of course we're waiting the most important number of the month, november jobs report expecting 200,000, 263,000 and of course until it's revised 261,000 in the rearview mirror pretty much a lateral move private payrolls moved to 221,000 and the combined revision of the last two months we subtracted 23,000 unemployment rate, 3.7% as

expected in the rearview mirror don't see a revision of this point average hourly earnings on a month over month basis, up six tenths of one percent, a equals a high water mark of october 2021 that's a strong number and wages year over year 5.1%, now keep in mind the 4.7 last month was the lowest since august, the lowest since august 2021, this is robust number and much better than expected. 5.2 is august. a high water mark here is 5.6 from march, nonetheless it's definitely stronger than expected and the average hours worked, 34.4, let's see, 34.4 is about as expected, we've had

34.51, 2, 3, 4 about five months in a row and finally the labor force participation rate moving in the wrong direction this is not good, 62.1, 62.1 that equals the low mark which was in july also at 62.1 on a recent basis, if you go back to the last year, 61.6%, 61.4 in january of 2020 when you look at it in context of 2022 it's a big disappointment and the other unemployment rate, 6.7% and that equals the best lowest level that we've seen in u6. so to summarize the treasury market says it's best yields went straight down, okay, down, down, down excuse me, yields went up,

equities went down we popped up to 3.61 almost up a dozen basis points the stock market on the other hand, the dow futures pretty much drop. this is pretty much the reverse of what we've seen, cleveland fed put out a paper that many were talking about that put a nice bid on the short end that bid is gone as you see rates popping there, up a dozen basis points compared to their close last night back to the panel. >> thanks, rick. let's bring in our panel sarah, we know that jobs are lagging indicator maybe

eventually they start, we start seeing a little softness there, when wages are up that much, and that hot, the fed's back on inflation watch, just no way around it. >> yeah, this is a hot number, it gives permission to keep increasing interest rates and moves out a pivot and the question for us next year what does this mean for the consumer and earnings and the chances of a recession the greater chances of recession, they're already dipping into their savings and earnings not realistic for 2023 probably need to come down equities trading down on this. from here a trading for equities and more downside. >> there has been some, betsy, and you know we got opec and

some of those problems, that's where gas prices are below $3 now, where mortgage rates are, housing prices, are all those things are meaningless if the labor market stays this strong >> you know, i don't think that they're meaningless at all, what the fed has to be worried about it's the wage number in here that's a little bit concerning are employers trying to hire people that aren't just showing up i don't know if i would interpret the decline if labor force participation as a sense that workers aren't showing up, the household survey, surveying households and then the employers asking employers what's going on, fewer people said they were employed, right, there's negative number in household survey telling us there were fewer people holding jobs in november compared to

october and when get this really robust number in the employers' survey, they combine those numbers and what that says we are slowing down, we're, you know, when we put these two together, we know the labor market is slowing, we're seeing layoffs and in certain sectors i'd say where the jobs growth was in this report 170,000 of jobs were in two sectors, j case and healthselveses which has barely recovered back to its pre-pandemic level some sectors are still in recovery and other sectors they got ahead of their skis. the surprising thing in the report we continue to see jobs growth in the tech sector information added jobs, i feel like maybe next month we'll see them reversing course if we

believe the layoff announce pts we've been hearing about. >> this one particular part of the economy and one particular part of that particular part of the jobs and labor, it makes sense for the fed just to go as high as it needs to go just to address that one sticky point that's sort of the fly in ointment we want jobs, people hired, we even want wages to go up do we want to keep raising until we bring this under ontrol is that the right move. >> it's two moves, it's raising rates higher and staying in place until inflation comes down the clearest signal that we have coming out of this report is wages, they are strong and they are higher and that's what the fed is going to be paying attention to, powell said this

week, wages hold the key to inflation and right now wages are turning inflation up not down even in the adp data we saw an ease, wage growth is still double digits from where it was last year, before and before the pandemic, so we have to keep an eye on wages but they're not going up for the reasons you suggest, joe, because of growth, because of productivity, they're going up because of labor shortages, people are still sitting on the sidelines and there's not enough labor to meet the demand in key sectors, those consumer-facing sectors that were hardest hit by the pandemic still haven't recovered fr >> wages haven't keep up with inflation. we need wages to keep up with unflags, no that's going to cause inflation, it's all circular, what do we want, tyler? >> i think you hit the nail on

the head, at the end of the day different parts of the economy move at different velocities and so throughout 2021 most of 2022 we saw wages lagging prices inflations, as wages start to catch up, i've experienced a real decline in my take-home pay over the past year and a half as wages start to catch up to prices even though price inflation is starting to come down that wage inflation starts to set a bit of a floor how far we can have this inflation and similarly betsey touched on this issue of services this is really important dynamic in the u.s. economy right now we had big surge in demand for goods and in the good sector in 2020, 2021 that's starting to come back down to trend and the key question is, can this continual

grinding back toward pre-pandemic back to services sort of prop up the rest of the economy that's looking increasely weak? >> here's the question, though, all these folks who have lost jobs in tech land, where do you think they're getting their jobs in. >> so, first of all, you're not going to go to austan before you go to me >> he's not with us this morning. >> where's austan? >> austan followed by tyler. >> that's why i need your analysis on this where are those jobs going >> if you don't mind, i want to bring neil in this i see pretty good strength in the information and tech sectors. the report on wednesday had a big decline in manufacturing which is also in line with some of the -- if i'm not mistaken you talked about the idea that

maybe we're not capturing what's happening now but might in future months, i want to point out this is very bad report for the federal reserve, this is going to prompt the federal reserve to do more the peak rate has surged, i think the last i looked it was 12, 13 basis points, it shows that people aren't listening to powell, they're hearing what they want to hear. >> by the way that has been the story of the last week >> see no evil, hear no evil, blinders are on. >> i want to ask -- your report, a lot of respect, we don't know how to deal with it because you're only three months live with the new methodology but this report today is not picking up a lot of the weakness we've heard from challenger and jobs cuts and the layoffs in tech and

the weakness you have in your report >> right, we're seeing interest rates like manufacturing really feel the brunt of the fed policy, it's not playing out in service sector yet but it's playing out in goods producing sectors, we continue to see that weakness and that will continue, look the problem with fed policy now when it comes to the housing market which is where it has been most transparent it's not only hitting supply but demand home builders came out and said there's a housing recession because of higher financing costs, all goods producing sectors dealing with higher input prices as well as higher wage prices, higher labor costs and you get some weakness there that's worth paying attention to but it oog being drowned by the strength in the service sector

>> one more point, fixed income markets right now, that's -- what do you want to call it? an el capitan. >> i'll ask rick, is there any world, what does a world look like where input costs are you should control a lot of things are under control but there are such good things happening in the economy that people are able to ask for more money, what's the right reason can it even be demand based or supply based wages are up because it's supply >> there's not enough of it. productivity

that's what's lacking in this labor market, the one labor market hasn't been able to capture is productivity that increases profit, increases growth, increases wages for the right reason >> that's the fed's benchmark for what it considers noninflationary -- >> joe, higher interest rates and higher equities and higher wages should go hand in hand huge distortions in the economy. many have latched on to some of my comments we reached peak inflation and a reason for equities to celebrate and i stand by that comment but historically speaking inflation is still a very crossive aspect of the economy joe, there's a kor rossive nature to the underlining to the inflation. there's going to be a global dynamic there hard to run away

from we still have so many contract and derivatives, so many loans by banks, that haven't reflected the tightening or new more mall we see that savings rate in october was the lowest in 17 years at 2.3%. i don't care how good this jobs market is, the equities market are having a very bear market which is not over, interest rates should go higher but we won't be able to afford the service. and i'm glad that goolsbee is going to the fed to focus we're expanding servicing that by hundreds of billions of dollars in the big picture so having interest rates to go up to try and combat and the nature of the economy just seems to be slapping the economy and then punching the economy and then trying to use a bat at its knee.

>> the ten year north of 3.6%. >> it was a 3.75 not that long ago. >> i know. i was going to make a point, 30-year mortgage, had a brief two-day window to get a better rate on your 30-year >> shut the window. >> it's too late we were looking and thinking maybe people could lock that in. you blinked you missed it. >> betsey, tyler, who wants to weigh in on all of this? because we said a lot. >> this is a disappointing number when it comes to inflation, people hoping that goods and shelter prices would start to show a rollover but wages are sticky, the key risk for 2023 is that recession risk. how do you build

recession-resilient portfolios you look for companies that are building their derivatives private credit that tends to be more resilient in the downturn and fixed income, we still do think a lot of the pain is priced in get equity liked returns. >> it's a dismal sign that it's like the economy isn't cooperating going into recession, what are we going to do it's dismal way to do things >> joe -- >> i still don't have a lot of worries about recession, you know, there's obviously a risk but i think it's more likely than not we can weather this storm without a recession. if we do have one i think it will be pretty mild and quick. households have a lot of money still on their balance sheet, that excess savings that accumulated in 2020 and 2021 not

all gone, consumer spending remains strong, you know, what it underlies the fed is trying to fight inflation until consumers start to pull back we won't see the full impact of fed policy i think we're on the right trajectory what we saw in this report i don't think reflects, you know, reflects the truth right, manufacturing added jobs, there are so many indicators that suggestsed that manufacturing is cooler. i.t. added jobs, again so many indicators that i.t. is starting to cool. a circumspect. >> one issue, month to month fine, whatever, we have a labor shortage problem in this country. we have a women's participation

rate that's below our competitors. elderly that's below japan a problem with immigration what may be happening in this report, people may be losing their job and hired over here because of the labor shortage. participation rate fell, powell talked on wednesday about the idea that the retiree, the rate of retirement is actually accelerating, we can talk about this month to month. we have to talk about the secular labor market shortage we have >> tyler >> on that last point i'll say we talked about productivity earlier we're talking about labor force participation now what you want is a set of policies that insent vised in new capital for workers such as

you have rising labor force p partic participation. three-quarters of the flows into e employment were people coming in from out of the labor force and a positive contribution to labor productivity growth. on the six months that there's just a lot of inertia out there consumers are still, you know, if you can believe it, you look at the data, they are still sitting on a huge stockpile of above trend savings. i worry in terms of beyond six months, do we have a wile e. coyote moment? survey consumers and they are reporting recessionary levels of consumer confidence but they're not spending that way, and the reason they're so far not spending that way is because of those excess savings and increasingly, they're starting to take on a little more debt. so i worry beyond six months, when that savings cushion is dissipated, what's going to keep this thing in the air?

because with a rising cost of capital, i don't see it coming from business investment i don't see it coming from residential investment, and with the slowing global economy it's hard to see it coming from exports >> those were great moments, out on the -- just be gone and he would be there for a while, you know what i mean that road runner was so clever and smart. does everyone know that? do our young kids know do our young kids know do our young kids still watch road runner and wile e. coyote i hope so or else you don't know what the hell tyler's talking about. thanks to our panel. tyler, steve, and rick and rick i don't think that the -- the roadrunner never said a word except for, "beep, beep. >> beep, beep. >> buy shares in acme.

>> that's right. because it's first in the yellow pages. a reminder, nela richardson will be joining the summit on december 14th. she'll examine what the economy may look like in 2023 and why small businesses are still having a hard time finding workers as we just saw, while larger companies are slowing the pace of hiring the event is free. scan the code on your screen to register, andrew >> okay. i want to get down to the new york stock exchange. get some thoughts on all of these numbers from jim cramer. what do you think about -- i mean, we've been talking with liesman here the equity market and the bond market, it's like, you know, i would argue blinders there's been this sort of see no evil, hear no evil, any time it looks good or just off to the races, and it's like a head fake almost every time. and it's almost like they're just listening to mr. powell when they want to listen, and they don't want to listen when they don't like what he's saying >> i think you're absolutely right.

that's a very good read on it. this is, like, any other time, let's say we were coming out of a recession or something, it would be like, wow, things are really starting to hum now this is a very -- this is a ridiculously strong report i mean, mr. bullard, mr. five to seven bullard, i could see how he could say that because there's nothing in this, other than retail, that's cooling, and seems like we're really starting to build up a head of steam, andrew just really incredible, isn't it that's not supposed to happen. >> but in this environment, if that's the case, what do you want to own? >> well, the -- you got to go back, i think. now that the two-year's moved so much, that's a pretty good piece of paper we have a lot of cash, my travel trust, look for major dislocations today i think you'll probably get them but i've got to tell you, if you had told me that powell -- if

you just reverse it and have powell give that same speech right now, you would say that, is he paying any attention at all to what's going on this is just a red-hot number. it's red hot >> i got another one for you red-hot story. >> about sammy >> i wasn't going there. >> i like -- >> i was going red-hot story in florida with bob iger maybe negotiating a truce with desantis >> this is the beginning the beginning of the iger period where you make up for a lot of mistakes of the previous fella and look, iger -- people got to understand iger's going to change this thing and it's going to be a remarkable transformation, and it's going to happen far more quickly than people realize, because he's very smart and very good he's really good

look, we own disney. i'm going to buy a lot more disney >> he is a -- he has been a beloved -- >> andrew. >> yes, sir? >> i think that people don't realize, bob iger can make a phone call that chapek couldn't make, and you would say, well, i got to rethink it. chapek makes the call, like, oh, geez, i got to take that call? with iger, it's like, wow, okay, hey, that's a smart thing. that's how people view him correctly, by the way. he's a smart man >> jim, we got to jump, but we're going to see you in just a couple minutes with the gang on "squawk on the street. looking forward to that. >> thank you >> as we mentioned, that november jobs report showing a gain of 263,000 jobs last month. that was just the beginning of the strong numbers there we have seen some significant moves across just about every asset class. dow futures, down by 311 points, nasdaq down by 207, the s&p down by 48. joining us right now for a technical look at the markets is katie stockton she's founder and managing

partner at fair lead strategies, also a cnbc contributor, and katie, we can talk about equities in a moment but let's talk about the ten-year because we watched the yield go from 3.15% just before that number to 3.62% just after that is a significant move it's a friday. it's the end of the week what's happening how does this change things? >> it's really -- >> 3.574% now. >> okay, wow, yeah the support for the ten-year is around 3.5% so it would be a very natural place for some kind of relief rally in yield following their corrective phase and naturally, you could expect that won't be well received by equities, of course, and we're at a point where the equity market is pretty stressed, as you know, especially after wednesday's rally. and we have these countersignals that are not showing up in yields they're showing up elsewhere and certainly in equity market and also in the volatility index so, there are some indications here that we might have an inflection >> what are those indications?

>> yeah, specifically for the volatility index, which, of course, is inversely related to the s&p 500, there have been some signs of short-term downside exhaustion. they're based on the demark indicators, primarily, and also the momentum reading we've seen momentum shift, favoring an increase in volatility, which would be a market negative. so, now, what we're watching on the s&p 500 index, for one, is to see if it has a corresponding loss of short-term upside momentum today could certainly be the start of it. it takes a day or two, usually, to impact the indicators, because the indicators are designed to reduce any kind of noise. so, we suspect that maybe next week we'll have these sell signals for the equity market, and we would be ready to get hedged with that in mind >> wow we're doing this on a weekend when we're heading into all kinds of crazy things that could be happening to impact the oil market too you've got that opec plus

meeting. you have the embargo that's set to take place on monday, the question of whether they're going to be price ceiling set for russian oil. right now, $81.25. i think i saw wti was up more than 6% this week as of yesterday. what are the signals telling you here >> it's really been very choppy in wti crude oil, which really shows indecisiveness, in my opinion. there is very good support on that chart between about 75, which is short-term support, and $70 per barrel, which is longer term support, and this would be a natural place for stabilization, which is essentially what i think we're seeing, initial reaction to the short-term oversold condition this week. so, if anything, we think that probably would end what we think is a long-term trading range that the upward bias is there for crude oil, not just in the recent term but also in the coming weeks the resistance that we have on the chart initially is really in the mid-90s, so that obviously would mark another significant

gain from here >> dollar. i haven't seen what its latest trade has been post jobs number but it's been down significantly since the fed's comments up at about 0.5% right now what have you seen this week with the dollar index? >> it's been positively correlated to ten-year treasury yields, of course, and the dollar index went decisively below its 200-day moving average, but if it comes right back above that, breakdown will be left unconfirmed and that's what could be happening today. so, we'll be watching that 105 level very closely for the dollar index on a closing basis. below 105, the support's around 103, so it would be a pretty notable decline that we could see on the back of that breakdown, so it's a very key level that's in play here. >> katie, we're out of time. maybe ten seconds on bitcoin, what we've seen. we were at $17,000

not sure where it is right now somebody put a chart up. >> there, too, we have indecisiveness it's back into a consolidation phase, it follows the big breakdown of that $18,300 level so i think risk is heightened there, and i would be watching very closely the boundaries of that consolidation phase a dip below it would be a breakdown. >> katie, thank you. that does it for us this week. make sure you join us on monday. we'll see you soon have a great weekend "squawk on the street" begins right now. ♪ good friday morning, welcome to "squawk on the street," i'm david faber with jim cramer. carl has the morning off let's give you a look at futures as we get ready to end the trading week 30 minutes from now. you can see, of course, we are set up for a lower open. why? well, where we begin, the jobs report for november. it did reignite rate hike worries on wall street