see temp jobs down, i see average workweek down. >> and you heard plosser say, they raise rates >> they ain't going to >> i'll raise you a doughnut >> those are free. >> make sure you join us -- >> happy national doughnut day >> thanks, kelly >> thank you for having me >> "squawk on the street" is next welcome to "squawk on the street," i'm carl quintanilla with jim cramer, david faber jobs number beats. best since january, but unemployment does raise to about an eight-month high, and while yields are up, futures are holding. markets still betting on a fed pause later this month our road map begins with the macro picture and that blowout jobs report.

nonfarm payroll surging in may and the senate moves to prevent the nation's first debt default. plusmagnificent seven, a handful of big cap names account for nearly 9% of the s&p's gains year to date and amazon, perhaps in talks to offer mobile service to its prime members. the reporting of that possibility has shares of the big three carriers down sharply this morning we'll discuss. let's start with the market reaction to this morning's jobs number jim, we talked about whether or not this had been derisked earlier in the week with that skip talk. june odds of a hike still below 50, maybe in the 30 range. >> it's so hard, because when you see this number, initially, you have to say, wow, they got to tighten, and then people start looking for lines which say they don't have to tighten and david, i call out -- i'm not saying they're silly, but you go to things like hard time for economic reasons, all these

nitty-gritties, but part-time for economic reasons is down over last month. people coming back people realize they're going to have to go back to work because of student loans i don't know s.n.a.p. s.n.a.p. was cited repeatedly. dollar general people don't get the food discounts. i don't know do people have to come back to work i think that's why interest rates aren't soaring >> that's the question you have, or you think you've already got the answer to it >> i'm not that presumptuous it's early >> what is your view of inflation and wages? >> i continue to believe that dollar general is the leader in this dollar general says, point-blank, people have gotten much less. big acceleration in payments having to go trading down. it's all happening >> so, there is consumer weakness >> yes >> every day, i feel like we say, well, there's consumer weakness, it's not that weak, some are weak. and then carl chimes in with

delinquency numbers on credit cards, for example, which don't look great, getting to the highest rate in a long time. >> this is why i'm going for skip things are just so in flux they're in flux. >> well, you got the household survey too minus 310,000, which i'm sure dp goldman will talk about later today. wages, jim, equal to june of '21. >> do they have to push it even further? do they? let's say we were playing jenga together, you and me, that's the game, put the things high. i pull this one out, then you pull three out, mester i'm never playing jenga with mester she's -- unless she really thinks she cannot cause a recession and the whole thing won't fall i don't believe it she's awful. >> you think she's awful >> i think she'd knock down the whole tower. i'm calling for prudence, not recklessness >> meantime, this morning, we got a bit of recovery in commodities, more talk about

potentially stimulus packages in china to rescue their property market hansen is up >> the communists had to do it and this time, i mean, did you see what it is this time it's like rents. they're going to cut the commission from real estate. what do they got there, like red fin? what's that thing, zillow? they got zillow in china now the districts have like $1.2 million because they only bought alibaba then they got everybody else >> copper benefitting today, highest since -- >> he's so phony i can't take it. jamie dimon, was he like mao now he's going to taiwan like chang >> you got 4,200 not getting faded. some would argue is a goldilocks jobs number. biggest weekly inflow of the year >> into tech >> and you have the president tonight from the oval at 7:00 signing this bill. >> give us a good day. give us a good day you know what he should do, the president? he should have speaker mccarthy

there with him >> you think he will >> no. >> i didn't think so >> no chance whatsoever. >> they got it done. that's all that really matters >> yeah. >> they got it done. >> they should have mike seifert there, the ceo of t-mobile stock is down. he could do to the rose garden david, you see that? amazon >> yeah, no, there's a lot of things this morning that are moving around, including that amazon, which kind of is new news, carl, but we should share what we've got or what we've seen so far, and discuss it a bit. >> yeah. >> reports have been around for a while. >> it's been a few days now, people have been talking about, but now again, amazon reportedly in talks to offer mobile service to prime members in the united states negotiating, they say, with verizon, t-mobile, and dish to get the lowest possible wholesale price. >> another add-on service to prime, potentially, but again, it's -- you know, this is something we've heard about as a

possibility. >> and what has happened every time what do you do every time >> i'm sorry, what has who done? >> when you see this story, what are you supposed to do buy t-mobile it usually turns out to be, no always has been untrue >> it hasn't -- right. it has been around, but it has yet to be actually seen as a product. >> right >> i don't doubt the reporting, but the question becomes whether or not this will be something real it is having significant impact, though >> you go buy t-mobile i'm not kidding. >> we talk about, of course, the comcastwireless effort and spectrum as well, charter is the company, spectrum is the wireless, and the broadband product from that company. they're making great inroads they have deals with, obviously, verizon, which they are -- >> you've said over and over again, verizon has that two-tier ridiculousness, which is probably why that yield is 7.5 >> they wholesale there already. but somehow, amazon is seen, perhaps, by the marketplace as a

more significant potential competitor in doing that, although, again, remember, these are the very carriers that are selling them their capacity to do it, so do you really want to put them in business if the market says we hate it i'm not sure how those deals work, but at the same time, the carriers say they are profitable deals for them and that's why they do them, and they don't believe they represent that much competition, ultimately. never made complete sense to me as somebody who actually switched to spectrum from verizon and lowered my bill by a hundred bucks. >> you did >> i'm a custom of there now a customer here, but i'm still using your network >> it's all about -- >> that's the most retail shopping i've heard from david in a while >> well, it didn't involve going to a store >> look, i've got to tell you, i have analyzed this for all the times they have said it, and these are the times to buy t-mobile, because it turns out it's never as radical as people think. we're all making calls to

amazon, admittedly, it's a little early there, but nobody home >> the one name that would obviously benefit enormously would be dish if they were actually to get somebody to start really using their network in a significant way that would be seen as a real positive we talked about this company the stock had fallen below $6 at one point. >> trades two times earnings >> but it's got an enormous amount of debt it's not about the $3.3 billion market value it's about debt, particularly in a position of rising interest rates. yes, every so often, jim, i like to talk. every so often particularly on a day when you can't even talk anyway look at this thing >> give me my tea back right now. give me my tea back. >> this is it. look at this thing >> keepaway? >> i was going to ask, should i cancel directv >> blocking my camera. >> should i cancel tv and get yahoo and take that damn dish down from my house >> no. >> why, yahoo's going to crash again? will yahoo crash

>> i don't know. >> enough. i'll let you talk the whole darn show i'm done talking i'm drinking >> i like this show so i don't have that much to say, so i let you talk most of the show. that's the show. >> are you done? >> yes, i'm done >> we're going to give jim a chance to talk about this tech rally now fueled by a.i. >> shut up, man. i got this one >> bank of america has a note out saying tech equity funds did see records. firm also highlights the performance of what it's now calling the magnificent seven, nvidia leading the pack. of course, that reminds us of the classic western. ♪ ♪ seven, seven, seven, the m magnificent seven ♪ >> the classic score >> now, let me just say, i said

this earlier than they did i said you don't want to deal with guys who deal in lead they're competitors. i had everything -- i even had charles bronson because the dirty dozen are the companies that have underperformed in the dow, and charles bronson was the only one who was in both "dirty dozen" and "magnificent seven. i had apple 37%. amazon, 44%. meta, 120. tesla was 66 alphabet, 39 this was the magnificent seven before they even heard of the magnificent seven. they didn't even hear of it. holst -- >> contrarian trade is to fade a.i. and buy the hanseng >> what is that, the great escape from tech steve mcqueen. >> would you do it >> no. >> just going to stick with the

a.i. move? >> who was the head of the bandits? for $10, who was the head of the bandits in "magnificent seven" brooklyn's own >> really? "beau geste. what else are we getting to this weekend? >> we're going to get to my mezcal, "the treasure of the sierra madre." >> very nice >> i can't even keep up. >> stunning. >> i got to say, your '60s and '70s film knowledge is par excellence >> back to nvidia, because it is 9/11 and i wanted to say the name because we haven't actually said what we had the question as to whether and how broad the demand is going to be and how extended it's going to be for these chips. you know, that's one of the questions i'm hearing. when microsoft, amazon, meta, and alphabet are full up -- >> and oracle.

>> and oracle are full up, is that it? or does ford, does airbnb, does everybody need to have their own large language models? >> tesla >> tesla designs their own chip. >> and they don't really care for nvidia i'm going to make a point that you're not going to like maybe you will that's it. i can't find others. i think everything else is just kind of -- salesforce, adobe, service now, they've got something going, but no, you named the magnificent how many >> five. >> the fab five. chris weber didn't call time-out it's fab five. >> but that would argue that maybe at 40 times revenues, it's enough >> nvidia guided up $4 billion in one quarter >> yep, yep. >> i mean, no. >> okay. >> and by the way, jamie dimon going to taiwan? day late, dollar short >> he is there now, having completed his trip to china. >> stimulus. the jamie dimon stimulus is the only stimulus that will work >> take a look at the premarket.

lot of theings working for the bulls today, vicks near a 19-month low >> it's going to 12. >> 12? >> you heard it first. >> we'll get to broadcom, dell, lulu, cost, zscaler and more when we come dak gaaaaaaaaaaaap!!! is that a goat?! you talkin' about me? gaaaaaaaaaaaap!!! i think this goat is saying “gap.” must be talking about the expenses health insurance doesn't cover. so who's talking about the money aflac pays to help close that gap? gaaaaaaaaaaaap!!! aflac! aflac! gaaaaaaaaaaaap!!! it's about to go down, baby! aflac! aflac! stop that goat! get help with expenses health insurance doesn't cover at aflac.com ah, these bills are crazy. she has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all or part of it to coventry for cash. even a term policy. even a term policy? even a term

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take a look at some s&p 500 gainers as we got some industrials starting to play >> incredible off the idea that we have a budget deal. people are starting to wake up to the fact that cleveland is

moving up. it is not over for the steels. >> we mentioned copper a moment ago, and of course that's building on the s&p nine-month high nasdaq, highest since august >> if copper stirs off that jamie dimon stimulus, it will be something. i'm going to quiz him like he's never been quizzed who created the u.s. deal trust? >> i don't know. >> morgan. >> i should have known that. >> it was a daily double too >> where was exxon located where was standard oil located >> pennsylvania. >> broadway. >> you mean the headquarters >> yeah. >> oh, yeah, sorry >> where was henry flagger the man who did the whole train station, all the trains in key ghst rit next to there. >> we're back in just a moment don't go away.

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all right, we got a "mad dash." we got a lot of time before the opening bell >> you ever heard of licht brothers my mom sold lingerie there kind of got canned there, retired, but the licht brothers building in philadelphia happens to be the location of five below, and this is a rapidly growing, as a matter of fact, so fast, triple-double, triple new stores, double the sales they reported a monster number yesterday, somewhat helped by super mario. this is the retailer that is buying tuesday morning stores, and it is just crushing it david, it's one to know, because don't forget, they're going from 2,500 stores to 3,500 stores it led to the party from philadelphia there you go >> there i go. what do they sell at five below? >> things that are $5 and below.

but they also have a little five and above thing. they mostly do toys, candy you take your kid there when you want to say, hey, you know, it's seasonal, they do a lot of seasonals. it's really well run i wait until it was big enough to talk about it with you. i've been using it on "mad money" forever >> you have? >> forever five below it is not rei. it's not k2. five dollars and below >> it's not about -- >> it's about how much you get if you order the long-distance from dish. >> all right, we got a lot of actual stocks to cover as well i want to talk sentinel one. we're going to go over earnings from broadcom that we got. lul lululemon. >> there's so much to do that's why i'm working today >> we're very happy you're here. opening bell is a few minutes away stay with us

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take a look at buffalo bills safety damar hamlin ringing the bell this morning. of course, damar has become such

a vocal advocate for cardiac health after what he went through earlier in the year, and we've all enjoyed watching his recovery >> yes, and i have to tell you that he's with nancy brown, who runs american heart association. she is fantastic they were both at our cnbc ceo council. incredibly gracious. but what -- they had like 30 people in the nfl at a game that are all set. they've done this very well. this man, david, hard stop, is such a great representative for the need to have care, not when you're 80 but when you're, like, all the way up this man's life was saved by a great crew of people >> yeah. and having the devices around as well the aeds yeah >> no, it's just an amazing story, and he is an amazing man. >> yeah. we'll watch him ring the bell in a moment in the meantime, auto sales today, ford's up let's get to phil lebeau hey, phil. >> hey, carl, ford is seeing sales in may growing 10.7% they are now breaking it out by power train, and what's

noticeable is that when you look at what's the strength in terms of sales for ford in may, it's still remains trucks as it has been for so many months over the last several years trucks up 31.6%. ev sales, however, and we know that production is lumpy, so you may have to take this with a grain of salt. ev sales down 13%. there you see shares of ford up 14 cents on the day. not a huge move on these sales numbers where sales increased 10.7%. one other note, guys the federal government, national highway traffic safety administration, out with a -- basically a warning saying to people who have a 2015 to 2019 lincoln corsair, park it outside due to a fire risk do not park it in your garage or near other cars until there is a warranty defect recall that has been issued by ford. >> during the day today, phil lebeau jim, speaking of the week, what a week it's been with ford and

tesla, the charging deal, the upgraded jeffries. i know you were all over that this week. >> i was, and there were some stories about how they're not going to have any -- the disparity between the industrial combustion -- the internal combustion engine and ev misinterpreted jim farley did not say there's going to be agreat disparity i terms of cost. he did not say that. as a matter of fact, he's saying, listen, things are really coming together in terms of cost. it was misinterpreted. what i would say is that warranties are killing them. killing them it's one of the things that farley points out. there's another warranty >> adam jonas at morgan stanley he'sow calling it co-op-tition >> i'm calling it trojan horse >> he says it's not unthinkable that the ocms buy better than the likes of tesla >> jim farley, ceo of ford, is saying, he has all the lithium he needs from the west i would say that he would tell

you, somewhat friendly rivalry somewhat trojan horse is the term that i'm using. >> meanwhile, tesla's plan is to have 20 million automobiles sold every year within the next, what, 8 to 10 years. >> my name is montoya. >> inigo montoya >> that's it you just give it that? isn't that going to take up all the demand for automobiles if they manage to hit the target >> it's true that tesla is killing everybody. i admit that they're mongodb'ing ford it's a verb. >> it is >> up $81. >> up 26% this morning >> that's a total short squeeze versus they do the same kind of model as snowflake >> i got mongodb, i'll match you with sentinel one. >> don't you tell me that's not a restatement. it's a restatement >> you got to explain to people

what you mean by saying that this was a name, a beloved a.i. name recently has been enormous even yesterday, just 17 million shares take a look. that's losing over a third of its value. >> david, wedbush is saying the might have double counted customers. i think that is highly ill advised if they did. >> yes, double-counting customers is not a good thing. wedbush is saying that is a possibility? >> reduction of 27 million or 5% of their annual revenue recognized contract, but it's wedbush making that charge he was on this morning >> he was. >> and the double -- you know -- >> the ceo of sentinelone was on "squawk box" this morning. >> everyone was saying that the mission critical can't be deferred he's saying, mission critical customers holding back i did not like this. i think the execution was poor sales not holding up very suboptimal. and the wedbush double count just took my breath away >> yeah, that's a serious charge

from analysts. let's take a listen to the sentinel ceo who was on "squawk box" as a guest this morning >> so, short of our own expectations of what we felt we could do this quarter, so we're obviously disappointed but not discouraged. we also managed to improve our margins significantly, and generally, i think what you're seeing is our transition towards more efficient growth, more focus on profitability, but there's no denying that the macro effects are, you know, obviously putting pressure on the business >> so, they're saying, macro effects, pressure on the business they say -- i mean, in that note, to be clear, they're saying the company said that they double counted some renewals >> some renewals but you know, double counting was not the actual thought of what he was on this morning. >> that's not what he used >> we got amazing numbers from crowdstrike, incredible numbers from zscaler just hand on the table numbers from palo alto and bad here >> yeah, some decent gainers

today between five, pager duty, mongo, zscaler >> mongo was, you know, you have a motto that everybody thinks is maybe dead from what frank litman said, and then their consumption model -- >> let's get the opening bell here as jim said, damar hamlin and the american heart association ringing the opening bell this morning at the nasdaq. it's clean energy technologies celebrating its recent listing, and at 4,247 this morning, jim, that's going to be fresh intraday highs for the year. >> wow, mr. wilson's really being challenged here by dennis "the magnificent seven" menace >> you're referring to morgan stanley's strategist, who's been bearish for a while. when do those types turn tail, at least on earnings >> when they're replaced with

another strategy i don't know mike wilson's very good. but david. >> yes, sir? >> he would say it's narrow. i say that just like in the movie, "magnificent seven," they save 439 villagers by getting themselves in a situation against the other one. >> you really are going down the movie references so deep that you've lost virtually everybody. but i still like it. i like it. >> you were going to be on "jeopardy!." >> it's going to rain this weekend, so i'm going to watch "beau geste," "the magnificent seven," "treasure of the sierra madre." what else? >> "dirty dozen. >> thank you >> lee marvin, navy cross, iwo jima people forget. >> was jim brown in "the dirty dozen" too

>> i think so. and trini lopez, and your favorite, kojak, telly savalis >> we just dated the show. now we're a hundred years old. >> something else i've seen is strength in the market but weakness in the wireless sector that we discussed this morning after the report from bloomberg that amazon is once again trying to put together wholesale deals with a number of the big wireless carriers that would allow amazon to offer some sort of fairly low-priced wireless service to its prime members still remains unclear whether that will happen, but you can see what that's doing in terms of taking significant market cap out of the three biggest players, not to mention our parent company, comcast. shares are down a bit, and charter as well, both who have wholesale deals with verizon, in fact, to resell that name under their own network. dish is up sharply, which it hasn't been up sharply in i don't know how long, in part because some of that network would be used perhaps by amazon,

were it to move down this path but guys, so much unclear about whether they will, whether it makes sense for them, whether it's something that would actually gain real traction with the consumer but it's having the impact on the market today otherwise, on a very -- fairly positive day across the board. >> wouldn't you say that if we haven't heard from amazon yet, we all have very good contacts there, that it's questionable? >> i have no doubt they're having the talks i don't doubt the reporting. we've heard similar things for sometime, but whether they get to an actual product that involves them buying capacity from any number of these wireless carriers, i think it's still unclear. fair to say. verizon has been willing to do these deals. the idea being, hey, if we've got it, why wouldn't we sell capacity on our network? we don't feel like we're really impinging on our own ability to sell there are those who would say, well, i don't quite get it, and the market's certainly saying, well, we think it's a threat to you to do that

>> wow i don't know costco is up today on the monthly numbers. some people think they're no good switching from prime to club >> uh-huh. >> now, name me two retailers that don't have a shrink problem. >> i don't know. >> amazon and costco >> right >> mitch galanti, great cfo of costco said, look, we don't have a lot of shrink. that's because you have members. you'd be shrinking against your own membership >> as for lulu, beats by 32. revenue ahead. guides in line the target increases are there but not huge today baird goes to 4. >> i know you've got calvin at 10:00, so i think you got to ask him about his shrink strategy and firing the clerks, not arresting the -- let's just say, apparent thieves it would be worth it by the way, he bought mirror, wrote it off nobody cares the stuff is so great. got to hand it to him.

great manager. >> he was pretty resolute about china's recovery when we last spoke to him here. >> the numbers were incredible for china. it's like they had no problems at all, and nike, up today because of the dimon stimulus. >> how about apple with this report that they're going to either add or rebuild 50 some-odd stores with a focus on asia >> they've done quite well there. remember, you know, that samsung is doing poorly. >> what do you mean when you say samsung is doing poorly? in terms of sales of handsets? >> yes, and we heard that from a bunch of chip companies, not just them. but we really heard from skyworks solutions, which is incredible they're a very big provider to samsung. >> also to apple as well >> that's called the big client. >> they don't talk about it. >> even hoc tan does not mention apple, ceo of qualcomm >> speaking of broadcom -- >> no, that was a segue to you because i keep hogging the show.

>> how deferential >> is today different than any other day? i don't understand keep drinking. look at that thing cnbc -- >> we don't really know what's in there, just to be honest. >> by the way, there is clearly -- >> you hold this up. it's like, you know what i mean? >> you've got mezcal in there. there's no doubt >> how sweet it is there. really dating myself now to the moon, alice >> that one, i get lot of it's generational with us we're much younger than you are. now i feel bad >> now you feel bad, off all the abuse, now you feel bad? >> what is this, planet fitness? lifetime fitness ventas >> broadcom. second quarter earnings, revenue was $8.73 billion, up 8% you got some positive adjustments in terms of price. you can see from analysts, you can see the stock is up. >> clowns sold it down 33 points last night did they bother even listening to the conference call

it does have a.i >> they do >> then why'd they sell it down 33 points, down 50 points from where it was >> what is it they saw in the earnings release before the conference call that would have had them selling the stock >> it was down 5 when the release came out, up 3% when he started talking about a.i., then dropped 30 points when he said, you know what? we're not just a.i we also have businesses that are flagging, including some of their pseudosoftware >> still waiting on the vm ware deal as well >> that was mentioned. >> i think they're hopeful but there are still questions. cma is still a big question mark in the uk. >> this was a great call and all that was really brocade and they are in the mix with marvell, and hock tan talked his own story down because he is not a hype artist. everyone was calling him hock. have some respect. >> mr. tan >> yeah. >> sure. i'll go there. love to have him join us again

it's a long time ago that he came on with us. >> fabulous guy. very tough when it comes to pricing. and he indicated again, very tough. talked about his contracts, how he makes them. by the way, he railed against something, and i'm really grateful any analyst that asks two questions within a question, he told them to stop it >> oh, really? one question each. >> yeah, one question. none of that working in. >> and worth mentioning, by the way, i mean, this is a $337 billion market cap. >> it's a real company >> this is one of the larger companies out there at this point. we talk a lot about nvidia, but the accretional market value here over a period of time, in part, we talked for many years about their acquisition strategy being a key part of the overall strategy of the company. >> yes, yes. >> and there are those who said once that stops, what are you left with? >> i know people think it's just, you know, one big kind of just add-on, add-on, add-on, roll-up, and i think that hock is better than that. i will tell you that he's -- if there's any one of the big hyperscalers that doesn't use broadcom to get the stuff to the

client it's really very good. >> guys, on the amazon story that we have been talking about, i did -- we do have a statement from an amazon spokesperson that i guess is worth sharing, because it's somewhat definitive the quote is, "we're always exploring adding even more benefits for prime members," says amazon, "but we do not have plans to add wireless at this time." >> yeah. >> no, the "at this time" could be right now obviously, could mean that at some point in the future they do, but those looking, perhaps, for an announcement of some sort of a wireless offering from amazon, perhaps will be disappointed in the near term, it would seem, given that statement we have from bradley mattinger, an amazon spokesperson again, saying, no plans at this time to add wireless, but always looking to explore adding more benefits jim, you know, when i hear about amazon these days, it has nothing to do with wireless. it has to do with a.i. and those who are positive on the company

believe are its opportunities in a.i. and what it can offer cruise cloud through aws to its customers. and then, there are also those who simply say, and hey, by the way, it's trading at 12 times next year's ebitda, and i'll buy it at 12 times next year's ebitda if you think '24 is going to come in where those who are bullish on the stock do. >> you have to buy t-mobile. they're being adamant. no plans to add wireless at this time always talking they said they told that to the source, to bloomberg, so i think you go buy t-mobile with their eyes closed. >> t-mobile, by far the biggest loser, down almost 8% on this. pin the tail on the donkey >> i was buying t-mobile with my eyes closed. >> good call it took you half an hour to be pr proven correct nucor, dupont, uri, cat, stanley, 3m all playing today. >> did biden get a deal for

pfas, then maybe 3m can. dupont is screaming on that deal that's groundwater >> groundwater pollution from the manufacture of chemicals it's been a big issue for 3m, along with the other litigation, perhaps more important in terms of soldiers and the inability -- >> that's combat arms. >> thank you >> j&j, not move ogeing on that because they have a big case in oakland that people fear they're going to lose. >> dupont over 6%. >> it was real >> dupont had the pfas, had the exposure, there was questions of fraudulent conveyance. >> that's teflon >> that covering it covers -- >> it's the never-ending -- >> so, are we in the midst of that pain trade that was

described as broadening leadership, laggards catch up, industrials reflect what's happening in the economy >> there was a presentation yesterday at bernstein the presentation was at 2:30 bernstein's a tepid kind of, don't believe in cat, bingo, up 7.5 today. and not done because they said business is really strong, and don't forget, huge infrastructure next year. no slowdown. people think, oh, china. less than 5% people think it's oil and gas. less than 5% people think commercial real estate less than 1% people don't understand at all it's datacenter, road building >> speaking of datacenter, vertiv >> i've always liked them. >> i know, dave cody, still chairman >> they had some problems. >> they did have some problems >> but there was a question out there as to whether some of these datacenters, in particular some of the products they offer because so many gpus are going to be running in them now, they're going to be even hotter and you need vertiv.

>> ever since dave cody, actually, not this february, but a year ago, said, you know what? i don't like the way this thing is going we got to raise price. well, you check the chart. check the chart. i mean, he just -- just said, that's it. i have had it. we're raising price. they have been trying to hold the line bingo, right at the bottom dave cody turned around honeywell. yesterday, by the way, they hand off cane at honeywell. darius is no longer ceo, and people are saying kapur could have something up his sleeve, but he's saying he wants to leave it up. >> that was a short tenure >> six, seven years. >> was it that long? felt quick >> he gave you a great return. >> yeah. >> he really did david, people are over "the magnificent seven" today >> they are? >> oh my god, it's incredible. >> what are they moving on to? >> robert vaughn

>> wait, robert vaughn was -- what was he? >> he was one of the magnificent seven. >> the man from u.n.c.l.e. thankful for chip in my ear as well >> where was thrush located? the enemy? 13th floor empire state building. >> right >> what i'm saying here is that people are buying that kind of stuff. and this is -- normally david would be saying it could be froth. i'm saying we did just get an amazing deal from washington that a lot of people didn't think we'd get they're pouring out of the six-m six-month t-bill and going into magnificent seven. >> fair amount of media news max sub base has moved over to the new platform you got netflix. shareholders rejecting the pay package. and then you got disney, more drama in the florida judge where he recuses himself and accuses the governor of judge shopping

that is -- that's not ending any time soon. >> i think that max switched over at a perfect time because of "succession." i think that was smart >> there's some friction in moving people. you had to reload. i had a harder time. >> just press a button >> i had to remember my password, which is impossible, because who remembers any of their passwords? >> you have to call your password remember. >> yeah. >> someone just does that. >> why they call it max is still beyond me. hbo is kind of global. some people knew about it, but let's get rid of that and go with max why wouldn't we want to call it max? >> i'll have it in ten seconds >> you're going to come up with a reason as to why >> no, david zaslav is >> you're going to ask him >> no, i could just make it up of course. you don't have him on speed dial you can't get ahold of him >> you want to have a competition as to who can get

him quicker. >> it's already over >> i got him >> oh, meta, yes, we didn't do meta asking -- actually, ordering employees back to the office three days a week beginning in early september. zuckerberg, jim, has made it pretty clear how being in the office helps people's performance, especially those who are new to the company >> if you're with zuckerberg, it's the year of efficiency. if you're not on this, it's the year of living dangerously great movie. >> also very good. linda hunt very nice. >> but i have to tell you, he is a no fool-around guy, and the farley building, we should go into a show from there to be a giant movie studio plus bolero >> a bowlero bowling alley yeah >> they have problems. weather-related, lawsuit >> eric adams has relented on allowing city employees to work remotely, he, of course, being

the one who wants people back in the office for obvious reasons, given the damage that's done to business that rely on workers coming to the office every day three days from zuckerberg not a surprise he said that in his efficiency memo from sometime back that people are more productive working together >> it could signal there could be more layoffs. but these will be by choice. >> it does give you the opportunity to dismiss people who don't want to comply >> exactly >> that is true. >> the level 6s and 12s. >> three days a week is what we're looking at that's the expectation tuesday, wednesday, thursday >> no media plans with t-mobile. where's t-mobile >> t-mobile is still down 7%, jim. >> david, people are just getting up on the west coast >> okay. >> look at broadcom. i mean, the shorts try to press that thing down. they were so wrong the shorts pressed mongodb they were so, so wrong and now, even snowflake's coming back mongodb is up 90 points, david

because the moron shorts decided togo against a game-changing model. >> mongo, alex in ""blazing saddles."" last old movie reference of the morning. >> all right are you going to see the new "batman" >> of course and "the flash." >> how about the barbie movie? >> absolutely. >> i need mattel stock to go higher that's a mattel production >> and warner brothers take a look at the markets here. 4,262. we'll take out the prior year-to-date intraday high by at least 30 points. vicks, 1,510 >> you know it's going to 12 >> jim says it's going to 12 >> this thing is built on groundwater. >> and the nasdaq, 13-month high don't go anywhere. you can always get in on the cnbc investing club with jim use the qr code on your screen we did see some reaction to the jobs number in yields, but the

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take a look at the s&p here at 4255. overwhelmingly positive. debt deal about to be signed another good jobs number some argue the chase is on, especially for those who have been fundamentally bearish we'll see. we mentioned the vix at 1510 santelli points out any close below 15 would be the lowest since february of 2020 back in a minute

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let's get to jim and stop trading. >> i'm going to say celsius holdings, which happens to make these energy drinks that are unbelievable, evidence lab, not just anything, ubs, saying stay long at international opportunity. monster moved international. that's when the stock exploded stay long celsius. it's a really story. the drinks are real. i did not have one this morning

because i wanted to save my energy because i save my energy for my next show 5:00. >> you had something this morning. >> i had -- >> whatever was in the blue can. >> is that magic tea >> yeah. kind of. >> yeah. it's kind of exactly. >> herbal but, you know -- >> so if this was a low energy show, what do you got planned tonight? >> i have biohaven which has a couple of special -- the ones that came up with by the way, with neuro tech, the best migraine drug that pfizer bought this is what's left. it is national doughnut day. i'm going twinkie. i'm going hostess. >> have a good weekend. >> what great show. >> it was a great show. >> we'll get back into the 2020 movies when you get back. >> 2023 movies even maybe. >> well you have him on speed dial what did he say to you

reservations. >> no comment. >> we'll see you tonight "mad money," 6:00 p.m. eastern time when we come back, more reaction to the jobs number and lulu topping the nasdaq 100 by a wide margin we'll talk to calvin mcdonald of the results and outlook with the dow up 410 're ready for anything. marriage. kids. college. kids moving back in after college. ♪ here's to getting financially ready for anything! and here's to being single and ready to mingle. who's ready to cha-cha?! your shipping manager left to “find themself.”

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. good friday morning. welcome to another hour of "squawk on the street. i'm carl quintanilla with david faber, melissa lee, live at post nine of the new york stock exchange sara eisen is going to join us with a special guest, calvin mcdonald, ceo of lululemon on the heels of a strong results. in the meantime things are definitely clicking for the bulls with the debt ceiling bill about to become law, decent inflows, broadening leadership, dow up 350. >> we're 30 minutes into the trading session. here's three movers we're watching this morning. shares of security software company sentinelone plunging after the company cut guidance announcing fresh layoffs there another mover mongodb now up more than 70% over the last month after beats on the top and bottom line, raising full-year guidance and reports that amazon

might be pushing into mobile services for prime subscribers, a spokesperson telling reuters they do not have plans to add wireless but shares of verizon and t-mobile still under pressure this morning. we will break down that story later this hour. in the meantime the morning's jobs report did come in above expectations. in fact, well above. though the unemployment rate did tick higher. bring in steve liesman and get his take on the numbers and what's means for how the fed is thinking about things from here. >> i think the answer to the second question, david, is nothing. right. if you look at what happened to fed probabilities, they were unmoved, unchanged, unremarked when it came to the issue of fed probabilities. i'm looking right now, 70% probability of the fed not doing anything and a 60% it hikes again in july. i am surprised by the strength of all this and how much this has remained the same. i think it's because you have offsetting factors the unemployment rate did tick up

that was something, perhaps, for the doves to speak for a pause, but the trouble, of course, is what you see when you look at the unemployment rate, it goes up, it goes down we intended when we had because of the strength of this job market, had a large number of unemployed they tend to go back to work. wages have been kind of stagnant here i think where we're at, it's not a bad time for a pause and maybe a pause for financial reasons because of what's happening in the banking credit and the need, of course, for the treasury to rebuild its account at the fed that could be taking money out of the system. >> hours work declined any significance to that in terms of where we are right now? apparently the lowest since 2011, not including, obviously, covid. >> i find that unusual that given the tightness the labor market we're not putting more -- putting -- having the existing employees work more hours. it is an interesting development. average hourly wages also declined that's another thing for the doves. i think what happened this week, david, maybe defies just the

data, which is that remember we had powell speak, and he said he was neutral about what the fed would do in june and the market started to get away from him, his own committee and their own comments got away a little bit i think jefferson went out there to speak for the chair and maybe for a certain number of the members of the committee and said hold on we're really pointing towards a pause and a skip and harper backed up jefferson. i think the data is going to matter more now for what the fed does in july and less perhaps for what it does in june we have one more report that matters. it's the cpi report on the first day two of the-day meeting in june >> you did mention one thing as well that's coming up which is the idea of enormous treasury issuance and what that could mean $600 million to a trillion to get the account back up to where it needs to be just give us a sense as to whether there's going to be a significant impact from that level of issuance. >> we don't know let me walk you through what i

know about this and maybe you can add something on this thing. okay so we know that the treasury's account is $50 billion or less which is less than a bunch of big companies throughout, which is a little bit scary. anyway, they want to build it back up and build that treasury back up and get their t-bills as passenger of total outstanding debt up closer to 20%, down below 15 right now i believe. they want to get up to 20% where does this money come from? there's two potential sources. it could come out of the real economy, out of stocks, out of people's savings accounts and go into treasuries to fund the t-bills. there's another pot of money out there, the enormous amgts of money right now in money markets which is on deposit at the federal reserve's reverse repoth account north of $2 billion. it's not a big deal for the real economy and i think this is a reason, not maybe the primary reason but a reason for the fed

to pause to see where the money comes from additional quantitative tightening or just moving money around from one account to another that doesn't matter for the real economy and the fact is, we don't know how this money, this treasury issuance will be funded >> there's the side effects of the debt deal that's passed and that's, you know, the end of the student loan moratorium, end of snap benefits and impact on the consumer there is any change on where the markets see the terminal rate? >> well in one sense there is in terms of the january -- the january fed funds has come closer to where the fed is it was at 100 basis points below the fed's terminal rate. it's now about 16 basis points below that i don't know if you guys in the back have the gap chart or just the january 24 contracts, trading about 497 before we started the segment and probably still in that area i think that's a pretty big deal

when it comes to where the market is priced it's sort of buying into this idea of the fed being on hold for quite a while and the fed coming down. we'll see, of course, melissa, when the fed puts pencil to paper in june with the new projections, does it increase the terminal rate if i think there's some possibility it does that. >> all right steve, thanks. >> pleasure. >> steve liesman let's continue this conversation with bofa securities head of u.s. equity and quantitative strategies who has a year-end s&p price target of 4300 and jpmorgan asset management chief global strategist david kelly join us in person at post nine great to have you here. >> great to be here. >> david, does your world change based on this jobs report? >> it's part of an evolving story. the odds of a soft landing are going up it is a very mixed report. i mean, we lost 310,000 jobs according to the household survey we gained 339,000 jobs according to the payroll survey. to me, the tiebreaker here is

wages. average hourly earnings up 4.3% year over year go back march of a year ago, it was 5.9% we're seeing we're not seeing much wage pressure out of this tight labor market that gives the federal reserve a chance to take its time here and then the one other thing, we did -- i am happy to see this passage of the debt ceiling bill one of the big risks out there that they're too crazy in washington and plumg us into an unnecessary recession has gone away when steve was talking about the terminal rate, the rate next year going up, what's going on, the odds on a big or significant recession are going down for right now. >> yeah. so do you think that's off the table as well? you raised your price target at the end of may. >> we did. we raised our price target to 4300, which is only 50away. i think that's right i think the idea that we're heading into some kind of dire doom and gloom recession is a little bit harder to justify

with these types of numbers. i think investors are positioned for a much worse backdrop than what we're likely to see our view is that this is a real opportunity to add cyclical exposure 4300 on the market isn't that bullish a call the constitution of leadership will change pretty dramatically. >> position meaning they're out of equities, cash and treasuries >> they're out of equities from the beginning of last year to now, 2022 to now, we saw about a 10% drop in allocations to stocks and all that money moved into bonds so there was the sort of safe haven mentality. i think that bonds are looking like one of the riskiest asset classes and most people disagree with me, but i think that in an inflationary environment when inflation is sticky and not potentially controlled, why lock in fixed income? why not buy equities and participate a little bit in that upside from earnings so i think it's an interesting

moment for asset allocators and investors. >> i loved your line this week something like, a market teaming with low conviction bears. what does it take to really push that >> i mean, it's an interesting time because i think there's a lot of career risk it's hard to be short a.i. or short tech because, you know, we saw in the first quarter that it was all you wanted to own, and so far this year, but i think the idea of why bother getting really cyclical if we are going to see a recession, that prevailing kind of mantra is still out there. why do i want to take that risk in my portfolio if we are heading into a recession at some point in the potential next quarter or two but the truth is that recession keeps getting pushed out and i think that we've been positioning for this recession for such a long time that we're actually at very conservative allocations.

>> i think i disagree in i don't think bonds are that risky right now because i am convinced inflation is coming down does the fed have the patience to wait it out inflation is like a roller coaster. it can be really bumpy, but you get off where you got on we got on at 2%. end of next year we'll be down 2% inflation again if the fed can wait it out. that's really the big question. >> i wonder, i mean i think 2% inflation is hard to argue for just given the structural changes in the market. if you look at the labor participation rate, a lot of that is from, you know, folks just permanently stepping back, you know, early retirement if you look at commodities, supply constraints are still in place, and i think that that's potentially inflationary when you look at globalization, shifting to more protectionist channels, i wonder is 2% really the number >> i think what we misunderstand is how much the fiscal stimulus

pandemic moves things. monetary stimulus doesn't do anything to stimulate the economy. fiscal stimulus did a lot. we had a two-year period which had a huge surge in inflation but all the long-term trends are in place the one thing i focus on wage growth is slow you would think the workers would be pounding on the boss's doors saying give me a raise or i quit and they're accepting the wage gains happy to have a job if they don't have that bargaining power you're not going to get sustained high inflation. >> you don't think there's a shortage of labor going to be an issue? you talked a lot about immigration i can remember in the past being a real problem. >> it is. >> or lack of immigration. >> if you look at the numbers we've seen a significant increase in applications to work we're seeing a bounce in immigration. but the other thing i'm seeing is, lower middle income consumers are going to get squeezed we've seen -- we saw all the retail reports this week there's a demand is sucking out of some

of these lower end areas i think that's going to hold inflation in check. >> does bofa see negative payrolls in q3, q4, q1 >> no. not negative. >> not negative. >> i think that the idea is -- i think the idea is we remain on hold the rest of the year but the upside risk to inflation is potentially higher i suppose i would say, the lower income consumer seems to be holding up better -- it depends on the data set. that's where it gets tricky. look at credit card data, bank of america credit card data shows that lower income consumers are actually holding up and it's the high-end that's starting to trade down into the low income play, meetium income plays. i mean, i don't know if it's entirely in the numbers. i think it's in some numbers, but then other numbers would disagree i think that's what make i do think, though, that we're at a point where asset

disinflation or financial asset disinflation is hitting the wealthy harder than the medium to lower income consumer and that's where, you know, i think the lower income could hold up better in this recession you know, another potential risk is this massive overweight if luxury goods as the defensive safe haven i don't know if luxury is going to be this time. >> yeah. i am more worried about low income consumers because i -- when i look at how much rents went up and what's going on with wages, when i look at the resumption of student loan payments, the personal saving rate has come down people have been living beyond their income for the last two years and they're still trying to maintain that standard of living and not going to be able to do it with the banks tightening i think that's high the fed needs -- the confusion, they push up rates 500 basis points stop now and see how this plays

out. no point in pushing our luck here. >> thank you both. good to see you in person, davit it means for the fed with goldman's chief economis on. >> the sector rebound as wti crude looks to close out. >> an interview, lululemon's calvin mcdonald, we'll break wnhedo t results of that company after the break. a lot more straight ahead. rude. who are you? i'm an investor in a fund that helps advance innovative sports tech like this smart fitness mirror. i'm also mr. leg day...1989! anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq-100 innovations. i go through a lot of pants. before investing carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com.

lululemon soaring. company sales grew 24% from the previous year, good growth globally let's get to our own sara eisen on the road for a variety of reasons. good morning. >> good morning, carl. i'm actually here in my hometown in cincinnati, ohio at a local studio great to be home, and i am here because i am speaking at my high school graduation tonight which is a great honor, and i'm excited about. david, it's no pitching for the mets, but it's amazing to be home and to be here and to be able to have the chance to talk to these high school graduates i'm here but you know lululemon up 13% with 24% growth. >> what are you going to tell them i want to know what you're going to tell the high school graduates? what's the message >> i'm going to talk a lot about what i've learned in this journey. i think my biggest message

actually is that you should be passionate about what you do, and fleece straight line and it's a difficult path and it can be really bumpy, but one thing that i've taken away from what i do and i know you agree with me on this, you have to love it to be successful at it. it's something i learned in high school i wanted to be a journalist all the way back to my high school years. i did a challenge project where i did a teen talk show about teen violence. that's something that's helped me and tell them fun stories about me back in high school and me and my job and maybe -- we'll get you some clips because i know you want to watch it. >> i do. i want to see every word. >> yes. >> enjoy your high school graduation ceremony. >> i will. >> all right in the meantime of course, weigh got to talk about lululemon, a company i covered, soaring this morning with 24% revenue growth, raising guidance as well certainly wall street is impressed. want to welcome calvin mcdonald, the ceo of lululemon, joins us

now in a cnbc exclusive. good morning, calvin. >> good morning, sara. nice to see you again. >> nice to see you i think the question on everyone's mind, regarding lululemon today, is how you are growing double digits and feeling confident enough to raise guidance in a tough macro environment? >> i think the performance in q1 building off of our performance really for the last few years speaks to the strength of the unique business model we have rooted in our incredible product and how we innovate on feel, versatility with multiple wear occasions and, obviously, the performance aspect, and then based in a community membership program where we activate our collective and build the relationships across either channel, be it digital or in store. and it's just continuing to be reinforced that it is a strong

moat and this team is delivering upon that strategy and delivering incredible results. >> and on the call it sounds like you're not seeing any weakness from the consumer i know you're primarily exposed to the u.s are you seeing any evidence of stress or strain >> we continue to monitor because, obviously, we're aware of the macro headwinds as well as what other retailers have posted our numbers, as i shared, we saw traffic in both stores and online grow 30%. transactions by existing guests were up 22% and transactions by new guests up 28%. which is a very healthy number we've yet to see any real material shift in spending patterns, but are definitely watching that. and around the globe in every market we're in, double digital growth not just here in north

america but every international market, obviously, standout performance in greater china, but also very pleased with our performance across the world and continue to monitor that >> i'm always trying to figure out the macro message from some of these reports does it say anything about the resilience of the luxury consumer you certainly target a higher income consumer. does it say anything about the athleisure trend or just see this as lulu specific? >> i think i start with, obviously, the uniqueness of our position of product. i don't think versatility is going away if anything, comfortable feels great and very versatile wear occasions, if anything, is more in style today as a result o the pandemic and that plays squarely to the strength of our brand, so i think when they come

in and buy lululemon, not only is it a quality product with longevity, but also has multiple use cases for the guest. if they are looking at where to invest and not to invest, lululemon, product to quality, the relationship and just the overall engagement with the brand i do believe is proving to be one in which they continue to lean in and spend on. >> if there's one thing to pick on, it was a pretty solid report overall, the direct revenue, came in a little bit weaker than expected, direct to consumer, up 16%. decelerated from the 37% growth rate that you were seeing the quarter before what's happening there >> yeah. we're very pleased with that number if you think of the success that we've seen in our digital business since the pandemic, to continue to grow, i believe we're one of only a few, if not the only retailer that has

continued to grow on that significant base while equally growing our store revenue, we guided to almost a balanced growth between stores and ecom this year as we see guests really embracing our omni strategy and shopping across either channel we're pleased with it. traffic up 30% driving new guest acquisition and a lot of guests coming back and continuing to shop the store overall, we like a very balanced approach to our growth we see balance across regions. we see balance across categories, activities, and gender and pleased with the balance across channel as well. >> so the regions, china, up 9%. we have to talk about that number i feel like this is the quarter where investors woke up to the growth story that you have going on there what's the playbook, and what are you seeing on the ground >> yeah. i was just there a few weeks ago. first time since the market

reopened i think one of our strengths is the fact that our go to market strategy is pretty consistent in every market it's about going in, establishing community, building relationships with local ambassadors, studios, with the guests, investing in the brand, in stores, and building out an omni strategy. we've been doing that in mainland china for a number of years. we now have over 100 stores. we invested all through last year through the pandemic and through the closures, knowing that it would reopen and we would continue to see success. i think the -- one of the benefits of q1 is we've seen the reopening. we have a fantastic store base and an incredible culture across our collective community there, and the product is resonating. it's resonating for all the same reasons while being fitness, versatility, quality, so we're really excited as you know we want to quadruple our international business and china will play a big part of

that. >> you know, the one thing i hear about lulu wlemon when i tl to investors, obviously,ly you innovate and continue to show your customer newness, the silhouettes, flair in leggings, but the question is how many $130 yoga pants does a woman need how much $58 sports bras does a woman need how do you keep the repeat customers coming in with this frequency? you said it was a mix of new and repeat customers boosting transaction. >> yeah. i mean the first is, new guest acquisition for this brand even in north america, we have a long runway our brand awareness is still well behind our peer sets. internationally, we're single digit it so just acquire with our existing product new guest is a significant runway of growth for this brand and with our existing guests as we continue to innovate and bring in new categories, update existing products and introduce new,

we've seen that engagement with the 22% growth in existing guests coming back in. we're excited about our runway of product innovation. i've shared our otm for our female guests that we're just starting to introduce, which is a significant opportunity for the brand when you compare, you know, the selection in our women's assortment versus our male guest, so a lot of nepruct versus just repeating and replacing a legging. it's more about adding to as a result of the innovation the teams deliver. >> i need to ask about the story in georgia which has made a lot of news lately, where peachtree corners georgia in one of your stores, two of your employees were fired relating to a theft that was happening in the store. there was talk that they were fired because they called the cops you say that's not true. can you clarify what's happened here it's gone viral, especially amid

the wave of retail theft that we're seeing around the country. >> yeah. for sure obviously, you know, retail theft and shrink has been a growing topic. it's an area that we've invested in we invest across three pilars, training and investing in labor, technology, as well as working with local and federal law enforcement. in this particular case, we have a zero tolerance policy that we train our educators on around engaging during a theft. why? because we put the safety of our team, of our guest front and center it's only merchandise. they're trained to step back, left the theft occur, know there's technology and cameras and we're working with law enforcement. unfortunately, in this situation, the educators knowingly broke the policy, engaged with the thieves across multiple points including following them out of the store.

so post investigation and the zero tolerance policy which is well known, that was what resulted in the termination. not calling the cops >> no. >> just to be clear, our educators are able to call the police we train them to step back it's about their safety. and we take that policy seriously. we've had instances and seen in our retailers instances where employees step in and are hurt or worse, killed and the policies to protect them but we have to stand behind the policy to enforce it and that was unfortunately the situation in this store. >> i'm glad you could clarify that because i know there's a ton of news about this very busy this week. calvin mcdonald, thank you very much for joining us. >> thanks, sara. good luck tonight. >> thank you very much i'm excited. calvin mcdonald. from vancouver and cincinnati.

back over to you in new york. >> we'll be thinking of you as well that's our sara eisen back he om today. "squawk on the street" is back after this don't go away. pes. would you stop calling each other rock stars? you're a rock star. you are a rock star. rock stars. please! do you know what it takes to be a rock star? i've trashed hotel rooms in 43 countries. i was on the road since i was 16. i've done my share of bad things. also your share of bad things. we know that using workday for finance and hr makes you great at your job. but that don't make you a rock star. ted! ted! ted! oh ted in finance. you're a rock star! hey liz in hr? can you do this? unless you work with an actual rock star. you are a rock star! thank you! who's the new guy? hi, i'm ozwald. hello ozwald. give it up for pam. pam, you are a rock- [silence] i wasn't going to say it.

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welcome back to "squawk on the street." i'm kristina partsinevelos oil prices are hovering near their lowest level all year on a drop in global demand. however you can see wti is up about 2% today, trading at 71.67, adding cushion after the volatility there's a lot of uncertainty around this opec meeting the countries including russia pump 40% of the crude. the decisions they make have an impact on oil prices investors are worried they won't come to the rescue and cut production depressing prices valero, natural resources, those are some of the biggest laggards right now that you can see on your screen on the week but you can see there's a little bit of an uptick. consumer staples struggling, down about 5% this week. investors left the sector in search of more risk. valuations still high which makes it difficult for investors to put new money back to work in the sector but i got to focus on dollar

general because that's part of the group, and it takes the spotlight, down roughly 20%, 19%, this week the company warned customers are cutting back on spending forcing them to slash their full-year outlook. back over to you. >> thanks. >> kristina partsinevelos. still ahead, goldman sachs chief econisjaomt n hat zus with a reaction to the jobs report. thinkorswim® by td ameritrade is more than a trading platform.

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welcome back to "squawk on the street." here's your news update at this hour bill cosby facing a new sexual assault lawsuit after california extending its statute of limitations on civil assault sexual assault cases a former playbook model came forward alleging cosby drugged and assaulted her in 1969. a spokesperson for the comedian denied the claims. in 2018 cosby was sentenced to ten years in prison after being

convicted of aggravated indecent assault, but a judge overturned it after three years. the number of migrants illegally crossing the southwest border is at the lowest point since the start of the biden administration the number has plummeted from more than 10,000 daily three weeks ago despite predictions of a surge after the end of the title 42 covid restrictions in may. some officials say it's because of a new asylum app and new rules about who is eligible to cross or just practical things like the weather a new spelling bee champion dev shah took home the $50,000 prize by correctly spelling psammophile. because i know you're wondering, carl, it is spelled psamm p-s-a-m-m-o-p-h-i-l-e. >> i know you're looking at te

kiron. that's okay. >> never heard of it. >> it would have slipped me up too. check on the markets about an hour into trading, you can see some broad-based strength. dow up 425 s&p 4258 a couple points shy of the intraday high. 29 straight months of strong growth ahead of consensus for 14 straight months. joining us at post nine, chief economist head of global research jan hatzius great to have you back here we are again sort of trying to decide survey, household establishment. there is confusion this month or not? is the direction clear >> it's a bit noisier than normal i would say because you had a lot of strength in the establishment survey and a big drop in household employment and also some weakness in the work week but if you cut through the noise, i would say it's a strong report it shows that the labor market continues to make progress

it suggests that we're still getting the benefit of increases in the labor force, and it shows that economy is currently at least nowhere close to recession. >> does that mean you're able to look past the jump in the employment straight. >> i think you can because the drop in the employment rate was driven by a decline in self-employment and, you know, i do think that this can be quite noisy. if you look at the household survey adjusted for the definitions of the establishment survey, you actually got a healthy increase in household employment so overall, i would say it's a strong report and confirms that labor market remains very solid. >> once upon a time, maybe six months ago, i don't know, it was believed by the market that employment rate would have to worsen, that people would have to lose their jobs in order for the fed to take a pause and declare victory on inflation we have seen inflation roll over in many key areas, energy, metals, food, all of that is

rolled over. do you think that we could have a scenario where the fed actually pauses for good, i'm not saying that's going to happen at the next meeting, and the jobs market is allowed to remain relatively strong. >> that has been our view that you can rebalance the job market in one of two ways one through a big increase in the sizable increase in the unemployment rate. the other one, the much more benign way of rebalancing the labor market is, to bring down job openings and yes, they're still trending down despite the latest increase. declines in quits and labor shortages and a more gradual rebalancing, which is what we've seen if you look at the wage numbers, you're also seeing deceleration n addition to some of the more encouraging aspects of the inflation news that you mentioned. so i think that does set us up for a pause. we are expecting a pause in june in fact, we have stable funds rate in our forecast through the

remainder of the year. obviously, there are risks around that. i think the risk at the july meeting is towards a hike. it's possible. but our best guess, this is it. >> you think base effects will make cpi look pretty tame in the next few months? >> yes i do think that that's going to help on a year on year basis and then on a month-to-month basis, there are some cross currents. i think we'll probably see another sizable increase in used car prices in the cpi. at the same time there are other areas such as represents that should be more encouraging so i do think that over time, we'll see gradual deceleration in inflation, but we're still, you know, quite far above the fed's target i think the funds rate is going to stay in restrictive territory and the market has taken out some of the cuts that are priced in there's probably some ways to go. >> you've been below consensus on recession odds for quite a while, even though you did tweak it up a bit to 35% over the next

12 months. are you going to stay there do you think or can you afford to bring that back down even? >> we tweaked it up from 25% to 35% right after the svb failure and -- but the news since then i think has been encouraging i think the -- you know, risk here is that i think it comes down and that's certainly a possibility because we've gotten the stabilization of sorts in terms of the regional banks, the debt ceiling issue, we've put behind us, and the fed looks like they're going to be on hold, at least at the next meeting. all of that is good news for those of us who think that we can avoid a recession. >> pretty amazing where we are, at least relative to where we thought we would be a few months or quarters ago. have a good weekend. thank you for coming in. >> thanks for having me. mortgage rates on a roller coaster hitting over 7% in the

last week. diana olick joins us with what the moves mean for home buyers. >> mortgage rates have been on a tear in the last few weeks, thanks to the debt ceiling and hotter than expected economic reads. and we just, of course, got another one in today's jobs report since the middle of may the average on the 30-year fixed climbs from 6.5% to over 7, then dropped a quarter of a percentage point just in the last three days, with the debt deal we get today's read from mortgage news daily around midday and given what's going on with 10-year yield, the rate will likely move back up again today. so what does this mean for home buyers trying to lock in the lowest rate given how pricey the market still is and how competitive it is? they've seen the potential monthly payment on a $400,000 mortgage swing up by over 150 bucks, then back down 50 or 60 bucks, now likely up again that might not seem like a lot, but a lot of buyers are right on

the edge of affordability and at higher rates some won't even qualify over 7%. while stronger job market is good for housing in general, right now it's translating into higher rates at the tail end of the all-important spring market. >> thank you still ahead, amazon is saying noplans right now to offer mobile phone services to prime subscribers, but that is not stopping a lot of these telecom names from suffering, at least in the view of investors perhaps the possibility alone is enough to pressure the stock we're going to break down that potentiawile dl resseal in a minute don't go anywhere. what if bd tell you how they could be more efficient? i'm listening. well, with ibm, you can use software to help you connect and analyze data— from hvacs to elevators to lights. what if we use ai-driven insights to pinpoint inefficiency? yep. and act on it. saving energy, money... ... and emissions. yup. that's a big one. now you've built something better for everyone.

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. bloomberg reporting amazon is in talks with wireless carriers to lease their capacity to offer low-cost mobile service to its prime subscribers sending shares of verizon to a 52 week low, t-mobile down, dish

shares actually getting a lift on the potential for being able to sell any of its capacity for anything an amazon spokesperson telling cnbc the company does not plan to offer wireless service at this time. joining us to discuss, partners walt, always good to have you. it's not the first time we heard this is a possibility. does it sound plausible and/or likely to you? >> i'm skeptical about the report and to your point, david, it's been talked about many times before remember, google has an nbo in the market today which has not gone all that well but with that said, i mean, it is plausible if you're amazon, you have amazon prime, added grubhub, you want to add additional services into that bundle and expand the reach of that. it helps you with your brand there's desperation on dish's part to get their business

going. even verizon struggles i think with revenue growth and a lot of people criticize verizon many years ago when they did a similar deal with the cable industry, and now verizon points to that as a nice element of the very little growth that they're generating today it's plausible, although i'm still skeptical because amazon is one of those companies that always comes up in terms of a potential partner in the wireless industry. >> are you surprised at the reaction in the marketplace, particularly given as you say the history of these, it adds some revenue and some growth investors don't seem to like the idea, though, of, you know, you potentially leasing your own capacity to have somebody compete with you >> i'm not surprised by the reaction because this is an industry that has 55% ebitda service margins, t-mobile, who claims to be the uncarrier, increased price effectively with their new rate plans verizon increased price. there's ample margins in this industry for someone to come in with lower price

even mike see vers on your own program last week saying we're not wrecking the industry, not wrecking the market, they're making it very healthy i wonder, maybe amazon should take a different tack. maybe they should go to t-mobile and verizon and say why don't we wholesale you for fixed wireless this is a new business that t-mobile and verizon are using to go after charter and comcast and get revenue there. if they're looking for incre mental revenue growth, which is hard to find in this industry, maybe that's a better opportunity for amazon and the wireless carriers right now. >> it's been an important area, of course. one we've talked about in the past is whether it could represent a true competitive threat to broadband, bringing 5g essentially into the home to replace it are you surprised at the sell-off in t-mobile in particular that stock is down over 9% right now. is it the most vulnerable in some way, even if it were leasing its own capacity to amazon >> i don't know if it's necessarily the most vulnerable. i mean they've kind of created this mess in the first place by

effectively building such a good network, right the consumer i think views the wireless carriers as commoditized networks. t-mobile is the one that relies on primarily subgrowth in terms of their overall revenue growth. if you have someone like amazon coming with lower prices pricesh most highly valued company within the space, then clearly that's the one that's going to have -- that's going to sell off the most i think some people are also concerned that t-mobile has effectively enabled this with the deal with dish it's unclear what the terms of those deals are with dish. i think there are ways that charlie can use his contracts that he has today with t-mobile -- both t-mobile and at&t to create a service, whether it's sold using amazon as a distribution channel, or maybe something more aggressive with amazon to get consumers to basically, what he would claim, is to buy the best of three networks -- dish, t-mobile and

verizon on one rate plan. >> well, he's going to have to figure something out. >> that's for sure >> we know that. finally, though, this has not been a particularly happy place to be, whether it's at&t, verizon or t-mobile. what are the prospects for the rest of the year any sort of inflection point here >> the problem in terms of valuation, everyone says look at at&t and verizon, they're down, 2.4% today, and you look historically at what the dividend yields of companies like this trade at they trade at a wider spread i'm not sure just because the dividend deal looks attractive these guys will pay the dividend the question is, if you can get the two-year at 4.4, you know, is the dividend yield at a 300-basis-point spread attractive enough for people to start piling into a company that's in an industry that's almost ex-growth and now potentially faces at least the speculation of someone like amazon coming into upset the

apple cart by the way, just to re-emphasize, 50% service margin this is a robust market. this is a healthy business the problem with healthy businesses, they attract competition. >> understood. good to get your insight thank you. >> thanks, david. coming up next hour, former fed governor frederic mishkin makes the case for a raise we're just off session highs at 4270

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while use cases for ai continue to grow, one industry is leaning hard into the technology, customer support julia boorstin joins us with that story. >> we've all had that moment of frustration where you press zero, desperate to talk to a real person. companies are paying to address that customer frustration. spending $461 billion globally on call centers last year, according to report linker, and companies are on track to spend more than $58 billion on customer service software by 2030 now, increasingly, that software

is driven by ai and could help cut some call center costs vcs see a massive opportunity here, investing nearly $5 billion in customer service since 2020 according to pitch book at the forefront of these are -- is forethought, customer service software which recently integrated chatgpt is used by marriott, instacart and upwork they resolve more than half of customer complaints before they get to a human. >> generative ai have shown us the ability to respond in human-like ways. we're combining that with company's deep integrated data and bringing the human-like experience with the power and the engine behind forethought to the customer support world today. >> another startup in this space is called cresta, drew a $1.6 billion valuation two years ago. it deploying ai to assist

customer service agents in fortune 500 companies, helping them find answers faster and improving handling time by 50%. >> our goal is not to replace agents our goal is to make them better at their jobs and more efficient and more productive. >> these companies say they are supercharging customer service workers' capabilities, but efficiencies mean companies should be able to eventually cut jobs. >> thank you interesting, of course generative ai everywhere julia boorstin joining us. that does it for this hour of "squawk on the street." have a great weekend another hour straight ahead. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

we planned well for retirement, but i wish we had more cash. you think those two have any idea? that they can sell their life insurance policy for cash? so they're basically sitting on a goldmine? i don't think they have a clue. that's crazy! well, not everyone knows coventry's helped thousands of people sell their policies for cash. even term policies. i can't believe they're just sitting up there! sitting on all this cash. if you own a life insurance policy of $100,000 or more, you can sell all or part of it to coventry. even a term policy. for cash, or a combination of cash and coverage, with no future premiums. someone needs to tell them, that they're sitting on a goldmine, and you have no idea! hey, guys! you're sitting on a goldmine! come on, guys! do you hear that? i don't hear anything anymore. find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or

visit coventrydirect.com. good friday morning. i'm carl quintanilla along with melissa lee. >> the ceo of novartis is wells intl positive data on the breast cancer drug giving the stock a bump today. later on, the week that was in retail. we have lulu with blowout numbers, macy's warns, dollar general cuts we will talk to walmart chief bill simon o