we have details. it is friday, september 1st, 2023. "squawk box" begins right now. good morning. welcome to "squawk box" here on cnbc. we are live here on the nasdaq market site on times square. i'm melissa lee with scott wapner. are you happy to be here, scott? >> are you convincing yourself? >> we are looking at a higher open to start september. this is the first trading day of the month. s&p is looking to add 13.5. dow up 16. nasdaq up 25. here is how the indices closed august. s s&p down 1.8%. it is on track for the best week

since mid-july. apple was down 4% for the worst performance since december. it had been higher for seven straight months. take a check of treasury yields. we have seen 4.34%. we settled down a bit. 2-year treasury trading at 4.86% of 4.86%. it showed a little stutter to what we have seen. >> a tale of two months. i'm looking at the tech names over the past week. if you look at this, you would have no idea it was any rough month for tech, nasdaq or anything else. nvidia is up 7% for the week. apple up 5% in a week. broadcom as welcoming off the

back of earnings. stop off 8%. >> the easing of yields off the jackson hole high has been phenomenal with the boost to stocks in the past week and tech stocks. >> correlation is right there. that's the whole month. >> how long does that go? when are low yields bad? >> we will find out at 8:30 what is the latest move is. jobs friday. polled forecasters expect 170,000 non-farm jobs down from 187,000 in july. and the unemployment is expected to stay the same. more predictions coming up at 6:30 a.m. eastern time. last night, the uaw said it filed unfair labor charges with

the nlrb against gm and stellantis. uaw president said the companies did not respond to the demands in a timely manner. stellantis did not receive the complaint, but shocked bit complaints. similar for gm said it had no merit and an insult. we will talk about this with phil lebeau later on. that deadline is approaching. september 14th is the date. and a.r.m. will have a goal of pricing shares on september 13th and trading the next day from the ipo. it is expected to raise $5 billion valuing the business at $60 billion. the s.e.c. delayed the decision again on whether to approve the first u.s. etf which invests in bitcoin. that comes days after the s.e.c.

rejection of grayscale application was arbitrary. many viewed that ruling as clearing the way for the s.e.c. to approve an etf. instead, the s.e.c. deferred that decision on filing. a blackrock spokesperson said their application was deferred. the next decision comes in mid-october. the price of bitcoin tumbled after news of the deferral. giving back the gains after the pop on tuesday's court decision north of 26,000. we will talk about the decision with former s.e.c. chair jay clayton at 7:30 a.m. we are watching shares of leululemon lululemon. that beats the estimates of $2.54 a share. that was thanks to the strong international growth. sales jumped 52% in markets

outside the u.s. and 52% jump in china lululemon raising guidance. china growth is interesting. no volatility there. it was strong and good. that's not what with we heard from the other retailers in china. >> we wondered going in. i heard people talking about it on "halftime." i said are you banking on china to save the quarter with the concerns that are happening there? apparently they are an anomaly. they have an idiosyncratic move. >> you had a horrific day in the session yesterday. you have that and the dollar tree story and lululewis lhem -

l lululemon. and we have shares of mongodb jumping with it's earnings and revenue beat. the ceo will join us at 8:15 a.m. eastern time. shares of pager duty are sliding. revenue jumped 19%. the cloud computing company guidance was in line with expectations. shares of dell technology rising with $1.40 a share. revenue beat full year guidance above the estimates. dell said 20% of the server orders for the first half of the year were related to machine learning and a.i. everybody is talking about a.i. you better mention it. it comes down to how many times you mention it. >> how other parts of the

business are doing relative to the a.i. part as we see in broadcom. a.i. was strong. we'll talk about broadcom after this break. we are watching shares which are down right now 4.6%. we dig through the company's report. that's next. and former fed vice chair roger ferguson will tell us what the data means for the september's fed decision. you are watch wiing "squawk boxn cnbc. >> announcer: this cnbc program is sponsored by ibm. ibm. let's create. data, it could generate problems. your business doesn't just need ai, it needs the right ai for your business. introducing watsonx: a platform designed to multiply output by tailoring ai to your needs. when you watsonx your business,

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shares of broadcom are falling. revenue satelightly higher than expected. it is expected to come in with revenue below guidance. stock is down 4.6%. >> you get a feeling of the biggest problem is they're not nvidia. nobody is going to live up to nvidia hype and what they have done the past two quarters in terms of guidance. if your name is not nvidia and you don't do an nvidia-like quarter, it is not like this

quarter was bad. >> it was okay. >> as you said, the non-a.i. related stuff and wireless networking. that wasn't bad. the guidance wasn't wow like nvidia the last two quarters. >> it makes you think from the investor standpoint, if you are looking for the hidden a.i. play, maybe that is not the route to go because you have the broa broadcom shows you the other parts of the business may be a drag and you may want to invest in the pure play. >> we had stacy on yesterday. he was making the point, the noted chip analyst, suggested this is a real way to play real revenue right now and people always cite valuation compared to nvidia being cheaper and a reason why you can't stomach the valuation of nvidia and this is your alternative play.

be careful what you wish for because you pay up for nvidia for a reason. >> right. this is the discount for a reason. let's get more on this from the research analyst on the broadcom call yesterday. pierre pierre, great to have you with us. how does this stack up? does nvidia look like the better play despitethe valuation because of the results of broadcom? >> yes. broadcom in comparison and a.i. is 15% of revenue to date. that is 1/7 total of broadcom. that is more or less expected to divert next year. that is where you see expectations for nvidia trending

in the data center business. the data center business is the vast majority. nvidia remains a more concentrated a.i. play. this difference with the two is very well reflected in valuation. you see on this chart broadcom from the 700 to 900 with the market realizing the a.i. upside. that is the stock being up 15%. that is the a.i. opportunity doubling in value at broadcom. what you see in nvidia is exclusively a.i. it is really a question of how far and how much you want to get exposed to it. the thing i would like to highlight is a couple of weeks ago when nvidia reported, the stock was up 15% after hours. it lost all its gains the next

day. there is a theme that goes a across nvidia and broadcom. what's next? it is a double swerve gain. the visibility that we almost never had in the industry. we know almost for sure the numbers will be gigantic. what is interesting is we have no idea what is happening in 2025. and the market reacts to the earnings and the dead ryline is coming close of t. that is the conversation we heard last night. it is everybody is focused on going fast and into 2024. what happens in 2025? it is too early to say for people who are close to what is happening in the market. >> how optimistic are you about

it closing? i guess we have a date late in october. >> i think that is a big thing that exciting me about broadcom. more interesting than a.i. doubling is a good thing. for vmware, broadcom has done the leg work of acquiring software assets and bringing them on the platform. the way they have done in the last 15 years in the semiconductor industry and making it successful. serving a small number of companies and vmware is a game changer. vmware is a technology up 80% of the fortune 2000 companies.

it is like a microsoft technology. it is like a cisco technology. the way i see the acquisition where vmware platform and broadcom is in the league with microsoft and cisco. that is defined by the ability of the companies to sell into the world's largest enterprises. once vmware has evolved, i think broadcom as the ability to grow organically with the software to the platform. this is a model where microsoft is investing in cloud platform and generic a.i., broadcom has a

massive opportunity to bring together assets with a high value in which you can see research development for growth. i see more value growth in the next three-to-five years with broadcom. >> pierre, pleasure. thank you. coming up, it appears the follow-up to barbenheimer is exorswift. no one wants to take on taylor swift on the box office. and we have edtipricons coming up at 6:30 for the 8:30 a.m. release. "squawk box" is coming right back. can't stop adding stuff to your cart? get the bank of america customized cash rewards card,

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potential sequel to barbenheimer is canceled. taylor swift was going to release the potential for her movie, but "exorcist" moved the release date up hours and the premiere date. jason blum tweeted look what you made me do. universal owned by our parent company comcast. >> i think taylor swift wins against any movie. disney owned networker went

dark for spectrum communications over carriage fees. customers cannot watch the u.s. open and college football kickoff weekend. charter's cable unit spectrum is the operator in new york and los angeles. >> people will be raging mad about that. college football and u.s. open to turn to the second week. >> you go online. go online. college football. a huge miss. coming up, payroll growth expected to show a downturn in august. that data due out at 8:30 a.m. more predictions straight ahead. as we head to break, a look at the s&p 500 winners and losers.

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good morningf. welcome back to "squawk box" live on the nasdaq market site in times square. s&p looking at 16.5. the dow looking to be up 151. nasdaq up 30. look at treasury yields. we are pretty calm here in terms of yields. 10-year treasury at h4.11. as for crypto prices, we round tripped since the s.e.c. decision regarding the grayscale etf. bitcoin is down 26,009.

we are two hours away from the fmonthly jobs report from august. we hhave tom simons and dara. it is great to see you. thomas, you first. what do you think? what do you think we will deliver given what we got from adp this week? >> adp was soft. it hasn't been a reliable indicator of what we get the following friday for quite some time. the call last month is adp overestimated the number by 200 k with the reinvestigation. i'm not particularly far off. it is softer at 165. i think private payroll is something to keep an eye on. there has been a quirk where august is a strong month for government hiring. take that out of the equation and going down to 110 k for private payroll. that is where we see the

constraint of supply on the labor market holding to really put a cap on overall job growth. >> some strikes will skew this a bit. dana, what do we need? you know what i'm getting at here. what does the fed need to see? what do investors need to see? this may play a large role in how we begin the month. >> it is a jumble to the rate hike for september. what everyone is looking for is lower than 170. 170 is the mark. if we can get anything lower than that, markets will be thrilled. it says maybe we don't need that rate hike in september. certainly, we had hawkish comments from july and jackson hole comments talked about parsing data and the fed paying

close attention. powell is being clear it is not determin determined what with whappen in september. the fed mandate is inflation and employment. you have to hand it to the fed. we have thus far done a nice job of decreasing job openings without increasing layoffs, which is what you want to see and what leads to a nice landing here. everybody will look for it in a couple of hours which is let's keep the number lower. >> jolts showed the lowest number in a couple of years. thomas, dana is saying good news is bad news. we're looking for soft, but not too soft. >> i think that is fair. that is more than a jobs number. i think the wage numbers are particularly important here as well. last month and for the past couple months, you know, it has

been coming in .40%. if you look at last month, you can make the argument of the decline in the workweek and they inflated the numbers. the fed wants to see the number decelerate more. if it can decelerate more without increase in unemployment and without too many more job openings falling. they will be pleased with that. i really think that given the constraints on the labor force and the impossibility of big job numbers that wages is the next level of trying to get an indicator of where they will go. my personal opinion is they are likely to be done. they have to see the number accelerate from here to really consider another rate hike and given the general soft tone of profit margin and business and that thing. i would bet we're not likely to see that. >> dana, you know, the saying goes by the rumor, sell the news. do you sell the news of the

final rate hike? >> i think that's fair. you know, recently, we were all thinking more likely than not there is an increase in september. the latest data coming in with inflation coming down in the same trajectory it went off. it went up fast and it has been coming down that way. i agree. wage growth is what the fed will look at here among many pieces of data. i think now we trend into this and maybe we don't get the rate hike. i will say that line applies to what we're seeing going on with earnings. every time earnings come out and the heexpectation of the nice earnings season is baked in and maybe over so you get great earnings and companies with

nvidia coming in with the really good number and the market not reacting well. not seeing that stock price increase. i think you are seeing that a lot in terms of what is going on in the corporate sector right now. >> if you are the cio, you know, you have to invest on the data has been and what you think it is going to be and we're coming off not the greatest month in the world, but recently, over the last couple weeks, it hasn't been so bad. what is the view as we turn to september, dana ? >> i think we are working on behalf of retail investors. many different styles and strategies. i think boiling that down, the headline is are you looking at high concentration in the client portfolio? if they are invested in the market and invested in actively managed products, there will be low tracking area with closet

indexing which is common. you have to look at the automatically getting with the concentration and being at market cap weight. you know, recommend looking at balance. make sure the fixed income is where it needs to be. if there is tilt in the portfolio, consider the traditional defensive plays. healthcare for example with a little bit of risk associated with the big tech in growth. not to say you are predicting what will happen with rates, but you are taking that risk off the table. at the end of the day, wite ske to the down side risk. >> thomas, you must think rates have peaked. if you think the fed is done, that would seemingly be your call? >> yeah. i'm not 100% sure yields have peaked. i do think we are pretty likely to see firmer data generally.

it is not so much the market will start pricing in more hikes, but the possibility the markets push out the rate cuts and factoring in fewer of them. the next two years is 205 basis points baked in. if the fed can achieve closer to target, but not get there with the last mile problem with amazon or u.p.s. dealing with the logistics chain. same for the fed. hardest part to stamp out in the inflation extrajectory. as we get further on in the process, i don't think we will see higher front end yields, but the back end and the belly of the curve to continue to see yields rise with the higher terminal rate or higher neutral rate going forward. >> higher for longer scenario. dana, how much of the headwind

is that for stocks in your view of stocks? we saw that even over the past week where we have seen the 10-year treasury at 4.34 down to 4.11. we basically went higher on the back of that pullback. how much of the headwind is the higher yield or terminal rate? >> i think the market is pricing in rate cuts quicker and at a faster pace than the fed is likely to do. i think it is easier for the fed to say skip an increase than rate cuts. there is some calling for rate cuts in early 2024. i get news from economists and review the views. there is dispersion there. a lot of them have pushed off rather than say we are sticking the landing. the fed will keep rates higher for longer and the market is not

really anticipating that. eps does continue to show cracks to the extent that relative to guidance. i do think the fed will care most about keeping that hold on inflation. inflation does come in waves. we really can't say we're past this battle. expectations of a cut are different here than overseas. you are seeing more soft numbers coming from overseas and does that have contagion here as well? i do think markets are pricing in cuts a little bit too quickly sdplchlt t quickly. >> thomas, do you have cuts on your bingo card? >> i do. my expectation for growth is weaker than general consensus. dana mentioned we have to push out the recession call. i had to push out the beginning

of the recession call, but not the end. i think the economy will go into recession q1 next year or q2. the fed will respond quickly with rate cuts at that point. i'm still feeling like it will be a relatively brief and shallow recession. given the tightness in the labor market and demographic trends and not more available people to hire, it is possible we could snap back into the strong recovery quickly and the fed not cutting that much. the inflation could be soaked back up in the recovery scenario and we're looking at finding a new equilibrium. >> thomas, thank you. dana, as well. see you soon. >> thank you. coming up, new data on which states have been quick adopters of evs and which are lagging.

we will talk about the latest in the labor disputes with the automakers. you can also follow us with squawk pod and listen to us any time. we'll be right back.

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positive on the first trading day of the month. we are watching shares of inn the -- intel. pat gelsinger saying they are track ago above the midpoint guidance. he reported an earnings beat in july, but did turn in the sluggish august. let's talk ev with the surge of electric vehicle sales and which states are plugging in. phil lebeau joins us now with more. hey, phil. >> melissa, this data from jd power. they looked at ev adoption. not the rate of sales in a particular state, but available a built of the models sought after by residents. in california, they buy more luxury vehicles. more available. the adoption rate is higher there. substantially higher there. this is the pace of ev auto

sales and what percentage of vehicles sold are vehicle. california, washington, oregon, hawaii. these are the top states for ev adoption and penetration. no surprise, there are fairly generous state tax credits in addition to the federal tax credit if you buy an electric vehicle. what we are expecting to happen b by the end of the decade is for ev adoption to be north of 35% as the pace of sales increases. it is not increasing. it is decreasing in terms of adoption in many states. bottom ten states have seen ev adoption rate fall by 1%. not a surprise when you look at north dakota and west virginia and south dakota and wyoming. they lagged in ev sales, but have a population looking for

maybe ev trucks at a lower price point. pickup trucks. there are not many ev pickup trucks at a low price point. there are not any at all except the lightning. you look at the ev companies here. ev adoption is lumpy. it will accelerate in those states pushing ev adoption like california and like oregon, washington, colorado and nevada. look at shares of the big three automakers. remember, uaw contract ends two weeks from today. actually ends at midnight on september 14th. guys, i think we're looking at a strike come september 15th at one or potentially all three of big three automakers. >> that uaw labor complaint is a bad sign in terms of how negotiationsare going? >> absolutely. you have to understand, melissa,

the president of the uaw has three audiences here. he has the rank-and-file that he has to keep united. he has the public that he wants to put pressure on the automakers to get a deal done and then he also has the automakers them selves. he wants to show them the uaw is far different this time around than it was four years ago. there are practical implications that the nlrb complaint means they get it resolved in two weeks? no. it happens weeks after the complaint. a lot of times there is not a hearing because a deal is worked out or withdrawal. it is an indication of what we will hear from the uaw as we head to the deadline. they're not happy with the pace of negotiations nor are they happy with what has been offered so so far from ford. they say gm and stellantis is

not bargaining in good faith. we are working through the negotiations. we will see a lot of this in the next two weeks. >> phil, one of the wild cards in all this is the amount of myers that the rank-and-file itself of the uaw is putting on their leader here because they see what other negotiations have taken place in other potential strike situations, i.e., u.p.s. they say we want that deal. one reason why he is taking a hard-line stance. >> yes. he knows he has the backing of the rank-and-file. scott, look at the profits in north america for the big three automakers. never been higher. if you are a line worker at ford, gm, stellantis, you say wait. they have never made more money

and you are offering me, i don't know, 9% raise or 13% raise over the course of four years? 13%? i see other unions getting more. i see people who are not in union jobs getting more over the last couple years. that's what fuels the rank-and-file worker. >> phil, thanks. phil lebeau. >> you bet. coming up, the s.e.c. delaying the decision on the bitcoin etf sending the price of bitcoin back to levels we saw before the key court ruling. as we head to break, here is the company set to report quarterly results next week. a reminder, you can watch or listen to us live any time on the cnbc app. at pnc ban you cas and small towns across the us, where our focus is to always support the people who live and work there. because you call these communities home, and we do too. pnc bank.

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welcome back to "squawk." watching shares jumped more than 10% after after announcing a deal with am amazon. last year a violation of terms. the information reported after the bell that shopify is allowing you to integrate tiktok stock. up 19% week to date. the crypto community celebrate add big win this week with the u.s. court of appeals moving in favor of a decision. a round of bitcoin applications. joining us, founder and partner of pomp investments. anthony, great to have you here on-set and back in new york. what did you make of this? >> no surprise yesterday.

another 45 days to figure it out. important thing about the s.e.c.'s loss in the lawsuit, the judge didn't say you have to approve the etf. go back, figure are you going to approve or deny on other causes. look, we have dfs, etf, question is when. one thing people aren't talking about. this ef ftf shock. closer we get to "having" coincide with a supply shock. could see repeat of 2020 quo up significantly in price if that occurs. >> back up. price action in response to the overturning of the decision. we saw all of those gains wiped out. you said sort of not a surprise. why do we see gains in the first place, and what is -- play has to be long, per se? >> i think, up by 80% start the year. down about 60% since start of the year in july and august down. september historically a bad

month for bitcoin. some of those seasonality-types playing in here as well. people who pay attention every day are not surprised. what's happening, a kind of turning of -- wall street people, retail investors. those who don't pay attention 24/7, 265, surprised. crypto native folks expect this. >> what do you think about the way gensler, s.e.c. is getting into this whole thing? >> impossible job. right? if you think about what the regulars have to do. basically want to encourage innovation. i call it embracing the entrepreneurship of the united states. about leader in technology and capital markets and protect investors. what they've been clear about is their perspective, bitcoin is the asset pass regulatory threshold not a commodity and they're treating it that way. the rest of the assets they

think are securities. litigations are going on. a lot of debate and i think disagreement between the crypto community and regulators. the beauty of america is that people go to court. lay out arguments, and courts decide. sometimes regulators are right. other times won't be right. that's why we have those court systems and judicial system and makes america the greatest country in the world. >> you sound, admittedly, surprised. sound a little more sympathetic towards mr. gensler as maybe i would have expected, because many who share your passion and advocacy for bitcoin have been much more harsh towards him? >> end of the day yell, scream, argue. name call, all the things people do. we still have to work together. end of the day regulators are always the regulators. my thought process, spend time focused on educating trying to bridge the gap, get them to understand why this technology is important. how it's already helped quite a bit of people, that's probably a more productive use of energy and time than to sit, yell and

scream at each other. end of the day, the yelling and screaming gets people to dig in their heels and then people don't want to work together. right? my belief, bitcoin etf will be approved in the united states america leading to billions and billions of dollars's inflows. same time i think that regulators are having to get up to speed. getting educating. more they learn, the more they realize the technology's not going away. stablecoin, regulators are scratching their head around. seen $11 trillion of transaction settled with this. same at visa. right? think about it. nobody uses that stuff, except for the dollar on blockchain used just as much as visa's used. a mind-blowing statistic. regulators, technologists haveo get together. don't dough it here in the united states people internationally will continue to use it and seeing international

usage and ap ddoption. america wants to be a leader? historically a leader. go lead. >> and if approved, how do you think about the trade? initially coinbase went up, but wondered, do you need something like coinbase if you can buy an etf on any exchange on your schwab account, for instance. how do you think about it. >> we're an investor in coinbase have been a long time. i think if you're a retail investor and want exposure to bitcoin over the last two, three, five years probably figured how to do it. not a ton of inflows from retail investors. sovereign wealth funds, large institutions not going on coinbase. that's where it could happen. coinbase, a fantastic job. more than any other country, or in the world. being a public company, they've held the flag. want to be regulated, a big brand and doing a fantastic job.

>> you talk about -- get back quick to use case stuff. stablecoins and astounding statistics you pointed out. what about for bitcoin? do you think we're closer now, any closer now, than we were, say two years ago, about real use case for bitcoin? i feel that's suspect. >> yeah. i think a fair question. right? first part of that, you have to define what is use case? a story value. buy it, hold it, never sell it ap amazing way to protect purchasing power. others want it to be electronic cash. drop dollars and spend bitcoin. i tend to think a sequence to it. maybe becomes electronic cash, neighbor doesn't. not sure. today for sure used as a store value. half a trillion dollar asset. tense of millions if not hundreds of millions around the world, buy it, hold it, want to protect purchasing power. from that standpoint, holding is

a user. right? then start to evolve the definition's use case, i need it to be electronic cash. sure. high transaction volumes and different applications people are trying to build, but i don't think anyone with a straight face would say bitcoin is replacing the u.s. drawerollar . >> some tried to make that case. are you on -- >> no. bullish. >> who are you and what do you do with anthony pompiano. >> look in general. market data is changing. one of the things i find most fascinating, people in the industry seem to be buying bitcoin and holding it. using that to protect their purchasing power. if you're in argentina, talked to an argentinean recently. said everyone in argentina wants to get out of it. 100% inflation, a horrible situation, but they're not going and buying bitcoin. they're actually, they want stablecoins.

right? the reason, want to get paid in dollars from their companies. pay other people. if you buy bitcoin and using that as store value and stablecoin to transact value seems what the stock market showing us, what's that people are doing good. >> to see you. welcome back, to new york. coming up, today's biggest movers. stocks to watch next.

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good morning. it's jobs friday. august jobs report will be out in 90 minutes. preview numbers find out what investors need to watch when the numbers are released. retailers bracing for return of student loan repayments. a look at headwinds facing the sector. what it could mean for stocks. youtube tv and other streamers getting ready to tackle the nfl. why live sports is a game-changer for streaming platforms as the second hour of "squawk box" begins right now. good morning. welcome back to "squawk box" here on cnbc live fromom the nasdaq market site times square. along with melissa lee. new month, same story, the

last couple weeks. dow opened 150. s&p 500 as well. dow is coming off its worst month of the year. take a look at treasuries, because they've been a big story as you obviously know. there's the yield on the ten year. 410. yield on the two year is 485. how about oil? energy was the only positive sector of the month. take a look. crude oil, trading today, 8473 gain 1 1/3%. just had a conversation about crypto. look where bitcoin is trading this morning as well. there is your picture. 26,000 on the nose. >> making it the s.e.c. delaying a decision again whether to approve the first u.s. etf investing directly in bitcoin days after a court ruled s.e.c.s rejection of etf application was quote/unquote arbitrary and capricious. clearing the way for s.e.c. to approve an etf.

instead deferred a decision on filings from ben, invesco, and a blackrock spokesperson says the application was deferred. next deadline for s.e.c. decisions come in mid-october. price of bitcoin tumbled last night on news of the deferral coming out. the court decision, mention 26,000 right now. former s.e.c. chair jay clayton joining us 7:30 this morning to talk more about this. >> last night united auto workers union file und fair labor practice charges with the nlrb against general motors and stellantis accusing them failing to bargain with the union in good faith. the uaw president says the companies didn't respond to the union's demands in a timely manner. stellantis said last night did not receive the complaint and shocked by the union's claims. similar statement from gm said the claim has no merit and is an insult bargaining committees.

talk with phil lebeau about this later on in the hour. dom chu. a look at this morning's pre-market. good morning. >> good morning, melissa and scott. kick off our labor day weekend movers with a check on semiconductors with broadcom shares under pressure. down roughly 4.5%. about 3,000 shares trading volume prew market. chipmaker and apple supplier reported better than expected quarterly profits and revenues after yesterday's close but the current quarter revenue slightly below consensus estimates deal wig uneven spending by business or enterprise customers. broadcom sees artificial intelligence a bright spot in the fourth quarter from generative ai networking students. from semis to yoga ware shares of lululemon um around 8,000 shares volume. athletic apparelmaker reported better than expected profits and revenue as well. boosting year outlook and

boosted by strong international markets specifically 61% increase in its china region sales. those shares up 2.25%. notable analyst calls. morgan stanley calling dell a top pick in technology. $70 price target. street high. team there says they see dell, saw dell see demand improving faster than expected in the second quarter. that's been benefiting directly from spending cycle in generative ai. stock up around 10%. pre-market 20,000 shares of volume following that after the bell yesterday. cap things off with bali, brazilian mining company getting help from jpmorgan. overweight to neutral and upped target price for u.s. listed shares from $16 tos $15. cited a better entry point given the stock's slide over the last seven, eight months.

higher prices, and a lot of things on the move now. generally positive. see if that trend sticks around to the opening bell. >> yeah. of course, metals in china getting a boost from better than expected pmi data. seen metals complex this morning really active. >> of course, all the kind of increment's stimulus measures undertaken by the government there as well. >> dom, thanks. see you later. jobs friday. steve liesman joins us with a preview of what investors can expect. we know what the number, expectation is 170. right? unemployment rate stays 3.5. yeah? what are you looking at me like that for? >> wonder where you're going. what do you want to talk about? >> after adp -- see the look he was giving me. >> i know. >> seriously. you want to step outside? adp is, no. not exactly the, the most accurate read. it's not usually -- >> a new read.

a new thing. >> however, because it was the read, and it was a little soft, it has folks thinking, okay. make this is going to be soft. >> right. let me go over the numbers. not everybody was up at 6:00. go through the numbers and give you muy take. >> not everybody was up at 4:00 either, liesman. >> cue the violins. you get to be on tv three hours, scott. don't give it up here. hopes are high, folks, that the jobs numbers comes in just right. low enough to show tight labor market is easing. easing of the fed. not so low to rekindle recession concerns. expectation, what the street is expecting. 170 and that's, that would be by the way the first time if we have three months in a row of below 200 since 2019. unchanged 3.5%. doubts about that. average hourly wages 0.3%. that's against 0.4% average hourly wages full year over

year. couple one-time factors, folks. not a clean report. 16 or 18,000 striking workers falling off the payroll from the hollywood writers strike. 30,000 jobs affected by yellow trucking bankruptcy and back-to-school august hiring to push up jobs because of lesseesinal firings in july. fortunately the market doesn't expect the fed to make a decision based on this number. and the fed doesn't sound like it's itching to make a decision in september either. the probabilities, september 11% chance of a hike. kind of like taking the month off. november, 44%. a few ways to make sense of the report. watch the revisions. tend to go in the direction of the trend with modest downward revisions every month this year so far. watch employment and duration of unemployment should begin to suggest greater slack in the job market if the it really is losing. what's happening, guys i don't know if it's working for you all, but this is more like fed

turned more into a soccer game than a football game. okay? football game, line up. hike the ball. get a result. soccer takes a little more time. fed is taking its time more now making decisions. i think a smarter way to do this sort of thing. not exactly what the market wants. market wants a decision right now. let me know! there are two more cpi reports between now and november, which means two more cpe reports. another report before then and then i would watch october 26 and 27. gdp and the pce just before the fed meets at end of october and november 1. so we're going to have to go back and forth on this. maybe volatility over time here, but i don't think that the fed is, i think going to take the month of september to look at data. >> you think bostic is an outlier who just a couple days ago suggested they've seen enough? >> i think about these things, scott. two ways.

first is, watch bostic et al. not the only dovish person. >> obviously -- >> no, no. i don't make much distinction between voters and knopnonvoter. i don't think it comes to that often. watch haley, more in the center, daly, for of a wait and see attitude. if you remember, the bellwether on this, dovish people, when she flipped went hawk you are time time -- hawkish understand the fed shifted. >> and same with carr, dovish. made a switch. important distinction to mark. >> then the question becomes do they have other support? such that the chair who really seems to like to keep the committee together. remember the work i did about a few months ago showing that powell has one of the lowest percentages of dissent of any of the past --

>> when was the last dissent? >> i can't remember to. >> to your point. >> i have a list of dissents. been a while. part because in an, okay -- it's really clear what we need to do here. comes along, cut it over a while. inflation heats up. goes to 8%. need to hike. really hasn't been much -- like i said no doves in the foxhole of inflation when it comes to central bankers. >> you mentioned additional jobs report we get between now and november. theoretically should be a cleaner report, but only if the uaw doesn't strike. how does the fed factor in or think about all the union efforts to boost wages in such a material way that may not be showing up in numbers? >> that's a good question. a question i hope to be able to ask some interviews we have next week. i'm not sure acan announce an iran view coming out next week. >> a tease. >> yeah. i have to check. with agree with them when we can announce these things. figure next tuesday here on

"squawk." here's the thing. unionization is a low percentage of the overall economy. it can create a benchmark. especially when it comes to, for example, the non-unionized autos out there. these, they've moved and then could put upward pressure later. see how it works. i also like to watch, every union has specific negotiations, but i think the union leaders, they act or don't act with a sense of the job market being very tight or not. so if they're really going to the mat on this stuff it suggests they think they are in a very good position with a tightly labor market. watch unemployment today. may be upward movement. >> steve, see you later. >> my pleasure. coming up, congress gets back to work after the labor day weekend. working on a plan to avoid a government shutdown on october 1st. we'll sdufdiscuss the options. and the u.s. housing market. may be in for yet another

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xfinity rewards creates experiences big and small, and once-in-a-lifetime. we are back. congress returns to capitol hill after labor day with a packed political agenda. including avoiding a government shutdown by october 1st. for more on this and what it

means for investors we bring in brian gardner. financial chief washington policy strategist. thank you for being here this morning. >> good morning, scott. >> here we go again. >> yep. >> going to get a shutdown? >> probably. so i'll give you a little good news/bad news. start with bad news. probably getting a shutdown. not 100%. definitely over 50%. good news is that investors look by this stuff. it's political noise. you look back over history. i've gone back the last 50 years. bunch of shutdowns a lot happen over weekends so no market impact. won't be on those. look at the shutdowns where, that lasted over five trading days. about a half dozen of them. basically the market looks pass the shutdown and to whatever else is going on in the economy. fundamentals, es et cetera. as a primary example, longest in history, 34 days from december

2018 to january of 2019. and despite the political chaos, the market went up 10% during those 34 days. so i think investors have and will continue, and what i'm advising our clients to do, look past the political niz ooise on this. chaotic, a distraction but the market's going to do what it does. >> i really want to turn your attention towards this trip congress secretary made to china. i feel like, you know, it's interesting. the message coming out of that was, you know, the administration of effort to have somewhat of a different diplomatic detente, if you will, with the chinese. interesting to me. as, you know, president biden's going to go and do another campaign at the risk of being criticized for being soft on china, if, in fact, that's, that's what the goal was here. how should we view this?

>> so this is one of a series of meetings between u.s. officials going to china. so take it in the context of that. it's an ongoing effort. also the role of the commerce secretary. traditionally over time is a bit of a cheerleader for american business. so there's that tone, and i think that was part of the message that the secretary brought with her. at the same time, when you're trying to balance out national security and u.s. business interests we're at a period in time, probably going to last a while longer, where national security trumps the economic interests of u.s. business. so i take the message in a tone from the secretary's trip with a grain of salt. to your point, going into 2024. there has been an ongoing competition between the two parties of who can look toughest on china and you have that national security concern that i

mentioned a second ago. i think that's the dominant message and theme, despite the secretary's message over the last week. so, to me -- i'm sorry. >> no, no. but -- that's how they would want the message to be portrayed. they're going to be portrayed potentially as softening on china, because of this dialogue that the commerce secretary apparently was trying to rekindle, if you will? >> no. so i think that, i think the message is going -- from this trip, is going to fade in the background, because you have another series of events that will be coming up. especially the ustr, trade repping decision on china tariffs and i'm expecting at some point those tariffs, implemented in 2018, which have to be reviewed, that review process going on for a year. i think the bulk of those

tariffs are going to remain in place with very little, if any, relief. i think that is going to be the dominant message that is going to overcome the message from the trip. you know, raimondo and u.s. business made one a certain message but i think the political message of 2024 is going to be more in line with what's coming out of the ustr. >> brian too, early to think about the sectors that will be impacted the most by election-year rhetoric? thinking specifically of health care. you know, recently unveiling of the ten drugs that are going to be subject to price negotiations with medicare on the part d side of things? should we be looking for rough, a rough road ahead for health care? seems they are, again, squarely in the cross hairs? >> you know, in terms of red state/blue state kind of, and sectors, health care's tougher. because -- i guess i can back up and say what i'm about to say. colors all the various sectors.

you know, you have this populace movement within the republican party. so it makes it gaugingly, a postelection impact a little tougher. on health care specifically. now, i think there are a bunch of republicans on the hill, populace republicans, who would be okay with expanding what the administration has done. specifically on insulin. and so i don't think it's as clear. i do think health care generally benefits from republicans taking over the government, but not as clear as the past. i think banking, financial services, would you know, would rally with a republican takeover. one sector you're going to see more shifts, i think, from administration to administration. financial services, banking, used to be a fairly bipartisan consensus on banking regulation. i think that's broken down and i think you're going to see wilder shifts, bigger shifts, from

administration to administration, and if republicans win in 2024, i think financial services is close to the top of the list of beneficiaries. >> brian, enjoy the holiday weekend. see you soon. >> thank you very much. >> have a good weekend. >> brian gardner. coming up, setting up to be an interesting fall season for crypto ar the former etf chair joins us to discuss shifting landscape. a check on markets. higher across the board. dow up 151. s&p adding 18. "squawk box" will be right back. >> announcer: time for today's aflac trivia question. apple went public in 1980 at what split adjusted price? the answer when cnbc's "squawk with a partner that always puts you first. start for free at godaddy.com from big cities, to small towns,

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higher than 10 cents this morning. $402 where the stock opens. 5.5% gain after company's earnings of 93 cents a share beat estimates of 4 ce6 cents. a competitive advantage in the world of artificial intelligence. ceo joins us at 8:15 a.m. eastern first on cnbc. roller coaster the u.s. housing market may be at another hairpin turn. we have more. >> melissa, just got the latest read on home prices for july and they hit at a potential downturn. prices still hit another all-time high rising 2.3% in july year over year according to black knight. that's bigger than roughly 1% annual gain in june and august comparison will likely be even larger, because prices began falling hard last august, but here's the hitch -- prices month-to-month weaken while still gaining, which they do this time of year. gains fell below 25-year

afternoon, this after significantly outdoing their historical averages from february to june. a signal slowdown. why? mortgage prices. prices dropped. down from the winter and spring causing home prices to turn higher again. now rates are back over 7% again hitting 20-year-plus highness august. add to that that why supply of homes is historically low, new listings finally rose in july as some sellers may be trying to cash in on these historically high prices. melissa? >> institution investors in housing, where are they in all this? seen as an opportunity to scoop up, sell or just standing pat? what does that do to the market? >> recent reports actually went from redfin this week showing investors were pulling back. such a pricey market. for institutional, though, talk about so much institutional investing in housing.

it's still a very small share of home sales. investors overall are still in the market, but institution, a small slice of that. barely 2%. while overall investors, individual investors, may be buying 10 to 15 properties, still in. institutional still pulling back a little. >> thank you. diana olick, thank you. still to come, former s.e.c. chair jay clayton on what is next for crypto regulation after grayskile's court victory earlier this week. and tom rogers on the upcoming season and a game changer for tv. winners and loser in s&p 500 this morning. "squawk box" will be right back. ke dynamic charting and risk-reward analysis help make trading feel effortless. and its customizable scans with social sentiment help you find and unlock opportunities in the market.

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the s.e.c. delayed making a decision again on whether to approve the first u.s. etf that invests directly in bitcoin. this days after a court ruled the s.e.c.'s rejection of grayscale's etf application was "arbitrary and capricious." many viewed that clearing the

way for s.e.c. to approve an etf. insped deferred its decision and a blackrock spokesperson says the application also deferred. next deadlines for s.e.c. decisions in mid-october making the fall a critical time for crypto regulation. joins us, jay clayton former chair of s.e.c. and a cnbc contributor. good to see you this morning. a couple things. first and foremost, are you surprised that the s.e.c. deferred after the prior ruling? >> good morning, scott, and, no. i'm not surprised. the deferral of the applications and the additional time period as a result of that deferral doesn't line up perfectly, but lines up pretty well with the time for action in the dc circuit on the dc circuit's action saying reasoning for not approving a spot, bitcoin etf isn't adequate. now we have two periods of time.

they're almost coterminous for the s.e.c. to take its next abc. >> anthony plompompliano in thet half hour with us, big for assets in crypto you'd find anywhere without question saying mr. gensler has a "impossible job" and sounded sympathetic towards the idea, although they thought was going to happen protecting investors in all of this weighs heavily in all this as well. how would you assess that comment? >> i caught your interview with anthony and thought he did a remarkablon job synthesizing a lot is what is going on at the moment and what's gone on over time. the job for the s.e.c. a challenging one. crypto is a technology. bitcoin is one manifestation of that technology providing a product. when crypto came to our retail

markets many people used crypto to develop products that were clearly non-compliant with our securities laws. they raised money in 23ek9tively public offering without going through public regulation and the s.e.c. had to tamp down and that, we did. now they have to deal with lines between securities offering, securities trading, non-securities offering, non-securities tradings and things like stablecoin. anthony mentioned. and they've clearly show profits. a job that is challenging, but one the s.e.c. and -- and, point this out -- many other financial regulators have to take on. >> all that said if were you in the chair today would you have approved it? >> look, i -- i'm not there and i'm not going to have that kind of, you know, i do this. he would do that. what i have said is, as this has developed, it is clear that bit coyne is not a security.

it is clear that bitcoin is something that retail investors want access to. institutional investors want access to, and importantly, some of our most trusted providers who are if a doucharies, have duties of best interest, want to provide this product to the retail public. so i think as anthony said, approval is inevitable. dichotomy between a futures product and cash product can't go on forever. that's the path we're here i think. >> inevitable, why is s.e.c. deferring applications? looking for other ways, other grounds in which to try and reject these applications? and what is the case to be made when they are, futures etfs for bitcoin investors -- are investors safer buying a futures etf than a bitcoin etf? >> findingous a long time, i

held this view. let me be clear. i held the view we were uncertain whether cash trading was so easily manipulable that retail folks should not have access to it. there are now large institutions with surveillance mechanisms who are coming in and saying, no. that's not the case. we can rely on the efficacy of the cash market to a sufficient extent where we believe it's a legitimate products. that's a shift. s.e.c. given time to re-assess and perhaps come up with other reasons. you know, i don't see those. maybe there will be some, but i don't see those. >> so what's your assessment, then what gensler is doing? why -- why is everybody in the industry saying it's inevitable and they're going to look for ways to reject the applications when there's a futures etf already on the market? what's the point here? >> well, let's -- let me say

this. we'll give them time. there's a 45 day, roughly 45-day time period. both in the dc circuit and on the deferral of these applications, and in the relative scheme of things i think anthony was, he didn't say it directly but relative scheme of things 45 days is a short amount of time. and i do expect that we'll have progress on this going forward. >> jay, talk to you soon. appreciate your time very much. >> thanks, guys. have a good weekend. >> you as well. walgreens, rosalynn brewer stepping down ceo and board member of the pharmacy chain named ceo in march of 2021. the company launch add search process for a new ceo. brayer staying on to advise walgreens searching for a replacement. current director ginger graham appointed interim ceo. the company warning its full year's earnings at or near low end of its previously stated range. not much reaction so far pre-market down by 0.4%.

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student loan payments resume in october. will that put more pressure on consumers? courtny reagan joining us with potential winners and losers. courtney? >> good to see you. today's student loan payments goin accrue interest again. ironic timing because many borrowers sending their children back to school. analysts estimate around 44 million americans have federal student loans and wells fargo says about 68% of them are 40 years old or younger. prime child-rearing age. meaning parents are spending on their back-to-school items for their own children at the same time their student loans are again encourage interest after the biden administration's debt relief program ends. deutsche bank estimates a student loan resumption takes a $14 billion bite out of total u.s. consumer spending per month. a survey of 15,000 consumers held 20% have student loans average monthly payment of $356

and plan to cut spending across all discretionary cat egories when payments resume. apparel and footwear cut back the most. macy's, dollar general, best buy expressing concern student loan payment resumption could take spend august way from their businesses. j jefferies hardest hid, walmart and others. footwear most at risk calling out, also apparel, sporting goods, best buy, ulta, american eagle, gap, nordstrom nike and victoria's secret. seemingly almost all of them. anyone who sells something discretionary. a long list. >> courtney, thank you. our next guest says brands such as foot locker, many courtney mentioned, impacted by the resumption of student loan payments in october. joining us now michael zacore

author of "the new retail." michael, nice to have you with us. sounds like a big deal and may be but actually a 12-month grace period for folks if they it don't pay student loans before hitting their credit score. how do you assess this immediately? >> with the grace period an immediate impact. hitting fourth quarter here. this is make or break time for every retailer and brand in america. you know, most brands make, retailers, about 70% of yearly in this coming quarter. so timing of this really couldn't be worse. listen, cnbc has been doing a great job of covering this. you know, we've seen a report that 56% of borrowers will be choosing between groceries and paying back their student loans. 70% of college students with debt say, coming out now afraid for their careers, and so you

have a double whammy of two groups really being hit hard. millennials in their 40swith their own kids going back to school. recent graduates. this going to be a disaster for retail in the fourth quarter. >> on top of this households largely spent down excess savings from the pandemic according to the san francisco fed. another headwind here in terms of overall retail puzzle. seeing most of the impact for holidays? halloween and christmas? most of the back-to-school spending is done? >> really see this come to the fore during holiday season. you know, if you look at what's happening, just becoming a debtor nation. right? so is this going to have a huge impact on overall holiday sales? no. but one more pinprick into the balloon we're hoping is going to be full for the season. i mean, talking about $32

trillion household debt. credit card $1 trillion and lo and behold student debt is at $1.5 trillion. even more than credit card debt in the u.s. so we are telling these mixed messages saying, hey, go out, get educated. that's the key to a great life in america. and then after you get educated go out and spend, because we're a consumer-driven economy and making it impossible to get an education and spend at the same time. >> i don't want to minimize this issue in any way, but in some respects feel like we're setting up for you know, the excuses to start flying from some of these retailers come the next reporting season. right? you're already hearing about shrink being an issue. the degree to which we're not exactly sure and retailers who never mentioned it before now mentioning it. now i can see a scenario in which this becomes one of those line items of concern that we

start hearing about in the months ahead? >> yeah. abso absolutely. a great point. shrink the narrative. a lot of retail earnings out last week. most not good. we've seen, you know, target ticketed, macy's. the trend we're seeing there is the traditional middle of the road retailers are suffering. they continue to suffer. i think it's less about outside forces like shrink. i think you know, inflation is still putting pressure there but eventually you're right. excuses run out. there's inflation, there's shrink, there's student loan debt that they deal with. i think the bigger issue, a lot of retailers in the u.s. who have simply not adapted to the way people shop, where they shop, how they want to shop. this is a much more integrated retail world. it's integration of online,

off-line, technology and content. we see a lot of companies doing really well. luxury is never lost steam. luxury is doing well. the dollar stores, value stores still doing well. i think it's all of that boring middle of the road -- >> dollar stores are doing well, michael? sorry to interrupt. >> i think they're -- >> they're down and a disaster in the session. not the only disaster quarter-wise. a string of quarters. >> yeah. absolutely. but i think what they're going to see is over the next couple quarters see that get back up, because people really have no choice where to shop. they're going to look for value wherever they can. i think dollar stores are more, like i said, victims of not adapting to modern retail, and new retail model, but i expect them to make a comeback as well. >> michael i have a question sort of about the impact of consumer psychology. you know, i think when consumers know that they have one more

bill, budgeting super carefully, maybe not, as we're all supposed to be doing. psychologically, oh, a new bill i didn't before. maybe that curtails the spending a little more than actually taking that exact amount of the payment and taking it out of discretionary income. i mean, how do you quantify the psychological impact of one more pressure on a consumer at lower income center who has to feel very pressured right now with inflation still elevated and interest rates still rising? >> yeah. i think that, a great point. i mean, you know, we're seeing it, by the way. this isn't just at lower income level. we're seeing it at the higher income levels with households over $100,000 in income, they're feeling the same pressure. it's just one piles on top of another on top of another, on top of another, and what gives? interesting psychologically, though what we do see with consumers is, when they see that pressure they may eliminate spending on physical products

but are less reluctant to spend it on experience. it's almost like, from a consumer psychology point of view, their psychology is saying, yolo. you only live once. maybe not going to buy a few more dresses, but i am going to go out to the restaurant and the bar and book a trip. so and bar and book a trip. it's a strange dichotomy with the psychology there. >> michael, thanks. and thank you, courtney. >> sure. >> and we'll speak to tom rogers and the upcoming seasons and being ready to tackle football. "squawk box" will be right back.

wow, you get to watch all your favorite stuff. it's to die for. and it's all right here. streaming was never this easy, you know. this is the way. you really went all out didn't you? um, it's called commitment. could you turn down the volume? here, you can try. get way more into what your into when you stream on the xfinity 10g network. bridgett is here. she has no clue that i'm here. she has no clue who's in the helmet. are you ready? -i'm ready! alright. xfinity rewards creates experiences big and small,

and once-in-a-lifetime. disney-owned networks went dark for charter communications customers yesterday amid a dispute over carriage fees. that means cust omers won't be able to watch major events, including college football and charter said it offered a current contract but that was declined. they are seeking a deal with limited rates and flexibility. tomorrow marks the kickoff of the nfl season as nfl moves to streaming on youtube tv. let's talk sports with tom

rogers, "newsweek" editor at large and former cnbc contributor. thomas, it's been a minute. good to see you. >> good to see you. i don't know what program i'm on. this is "fast money" meets halftime on "squawk box." >> before we have some fun, let me get you, this fight with charter and disney is coming at a horrible time, u.s. open tennis and college football and and on and on. >> typically the programmers have the leverage here and disney is obviously pulling its programming at a point where with football season beginning and the u.s. open hopes to max muse its leverage. cable operators, though, are far less sensitive about their business than they used to be. they are much more -- their broad band possibility and

growth in their video, that die nam uks changed some. but this fight is really more about what streaming's all about, which is allowing people to buy things outside of the bundle and not being forced to have to pay for what they don't necessarily watch. and sports and cable have always been subsidized by the non-sports viewer who has to take espn and the expensive sports channels whether they want them or not. and this fight i think is less about price of what disney is offering and more about that issue of disney wanting to force the bundle through the consumer to have to pay for everything and charter-spectrum looking to be able to unbundle more. >> let's turn our attention to the nfl, youtube tv getting "sunday ticket." seems this does a lot more for youtube tv than it does for the nfl, which already enjoys incredible popularity, no matter where it broadcasts or streams,

et cetera. >> well, that's true but this is going to be the year, i think, youtube comes into its own as a tv power house. youtube already has about 45% of its viewing coming off the tv screen, and while many don't realize it, it beats netflix as the number one streaming service. and then you turn to youtube tv as opposed to what charter or spectrum provide or comcast for that matter, being bundlers of channels, youtube tv gives people the ability to buy a bundle of channels online as opposed to through a cable or satellite operator. and i think what this does for the nfl is take this sunday package, which has been very hard to get because you've had to be a directv subscriber,

meaning you need a satellite dish, you have to subscribe to the directv bundle. for the first time this sunday ticket and all the games it provides you don't need a dish, you don't even need to subscribe to a bundle of channels. you can get this absolutely independently of any kind of bundle, and that means 125 million homes or so that have never had access to "sunday ticket" are now going to have it and much more broadly make this available. so that's a big deal for the nfl as well. >> hey, tom, before i let you go, you ever seen anything like this one-woman industry that is teleswift? now we're learning the tour is going to be in movie theaters. it's just remarkable. >> it is. she's in a category by herself. given the strike and what's going on with new films and what impact that's already going to have on movie theaters, which are still down in attendance,

this is a god send for the movie theater business to be able to have that tour available for millions of people who are hearing about it, weren't able to get tickets and this is going to be a big deal for the theater industry. >> hey, tom, we'll see you soon. enjoy the holiday weekend. that's tom rodgers. >> thanks. >> coming up, instant market reaction. check out the futures ahead of the numbers. we've been holding pretty steady with gains across the board. s&p up about 17, nasdaq higher by 35. "squawk box" will be right back. k in my top eligible category... suddenly life's feeling a little more automatic. like doors opening wherever i go... [sound of airplane overhead] even the ground is moving for me! y'all seeing this? wild! and i don't even have to activate anything. oooooohhh... automatic sashimi! earn cash back that automatically adjusts to how you spend with the citi custom

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good morning. we haves august report. straight ahead, broadcomm is slumping and breaking news from walgreens. the ceo is stepping down as the final hour of "squawk box" begins right now.

good morning. welcome to "squawk box" here on cnbc. we're live at the nasdaq market site. joe, becky and andrew are off today and they are missing a very important report this morning, the countdown to the august employment report. >> their loss. >> their loss. our gain, scott. our gain. we'll get the data 8:30 a.m. eastern time. we're just moments away right now. the economy is expected to have added 170,000 nonfarm jobs down to 187 in july. the unemployment rate expected to hold steady at 3.a%, an average hourly wage growth is expected to grow slightly from full. checking the markets, we're pretty stable all morning long, looking at gains across the board at this hour, estimates up at about 17, nasdaq will add about 35.

we have seen movements in treasury yield. we've seen the 10-year give up some of the ground we had earlier. we're at 4.097% right now, 2-year at 8.39. let's get to the movers including the dow component wall green. >> we'll start with the late breaking news on walgreen alliance. the health care products retailer and dow component is right now down about a percent. it was up 1.5% just moments ago. it's swinging around right now at just around 115,000 shares of volume. it announced that ceo rosalyn brewer will step down effective yesterday from her chief executive role and as a member of the board of directors. she will be replaced on an interim basis by current lead independent director of the board ginger graham while wall greengs conducts its search for a permanent ceo. the company updated its four-year earnings guidance saying it will come in at the low end of its previously stated

gains. walgreens a couple of big announcements there. also on the earnings front we've got a couple of notable movers, lululemon just about 27,000 shares of volume. it reported better-than-expected shares and revenues and boosted its outlook and it's helped by strong sales in its international market, specifically a 66% jump in china region sales. those shares up 2 1/4% and broadcom reported better than expected profits and revenues but its current quarter forecast narrowly missed consensus estimates as it deals with more uneven spending from corporate customers. br broadcom expecting year-over-year growth.

melissa, i will send things back over to you. >> thanks, dom chu. >> and joining us to read the charts is cnbc contributor katie stockton. nvidia? >> it looks like a breakout with a long deep uptrend. i feel there's been a loss of momentum more broadly for the tech space that includes nvidia and probably at best neutral right now. we feel that we would hold to this long tradition and the broader market is over. >> and what will you need to see in order to convince? i'm assuming you're talking about specifically the biggest tech stocks, the quote unquote, magnificent seven as some like to call them. >> it been really interesting.

for the past two weeks we've had relief from the weakness in early august and those two weeks have been very largely driven by mega kap. and i think it shows the propensity of investors to go right back to the existing leadership of the market into weakness. though i do still think that those leaders will take us out of the space but i'm not convinced that they'll -- it's an a, b, c fashion, and i think that's probably what we've seen over the last couple of weeks and perhaps stabilization and yields. >> are you surprised by how quickly the market seemed to turn around in the month of august? we were talking earlier, really a tale of two months. >> we did get to a place where it was a widespread short-term oversold reading. it wasn't a fast and furious pullback but it was enough to generate that. from a breadth perspective, it

was somewhat natural and of course now we come into september and there's very weak seasonal influences. i think we need to assume we're not out of the woods yet but the damage is really only short term at this point. we still have long-term momentum, we still have breadth that is actually constructive, even though it's pulled back. >> there were some who said since we started with nvidia that the lack of reaction may be market top and chips generally speaking but then you just said we have another near-term breakout. >> it's not one i'm chasing or buying. we also have one in alphabet that looks like a short-term breakout. because of the top-down influences, that's why i wouldn't be adding strength to these names. then you see broadcom under pressure this morning. i think they do exhibit leadership in up trends. right now i think we see one more downdraft before we get back to the reassertion of the

up trend. >> where do you see rates going in the positive up trend for stocks. do they have to go lower? >> it's really interesting. what we've noticed is the direction of yields is almost less important as it pertains to market sentiment in the trajectory or velocity of the move. so when they're running up strongly, that tends to have a negative impact and vice versa. right now we're looking for stabilization up around where the average lies for the 10-year. after that we're looking for more consolidation, lower perhaps for a few weeks and that might not influence the sentiment in the way it has done. >> so the high that was established in october on the 10-year, that holds? >> for now. we ultimately think it will be broken because of that long-term up side momentum behind yields. i don't think it will happen in the near term. >> you think it will be broken, though, that yields are going to go higher? because obviously stocks then will have a problem. >> right. it's a matter of when does that

happen. the 434 level is the resistance. above that i do think there could be a drag on equities. there's no near resistance nearby beyond that level so i think it would certainly impact. >> why would it happen then? what's going to push rates beyond that 434 level? if we think the data is getting a little softer around the consumer for certain and the fed is, you know, arguably done, maybe they go one more time, what's going to be the catalyst? >> the charts won't answer that question fortunately so it's a technical strategist. i'm looking at the trends and the momentum. to me the force is momentum but what the driving force of that momentum is is really more of a question. >> what is reaction when you talk to -- >> when i say 5 1/2 is an extra distance there's a gasp and it's very much higher than current levels. i don't think it's a near term concern but i do think that it

kind of begs that the higher for longer argument is valid from a technical perspective. we've seen what we believe to be a secular shift in the industry. >> for crude, this morning we're watching it up by about 1 the 3% on wti. what do you have see for that in terms of momentum into the back half of the year? >> it's been interesting. energy resurfaced in august as the best performing sector of the s&p 500. and that's brought its ratio versus the s&p up into its 200-day moving average. so it's about a proving ground in our work. and so is crude oil. te testing it right now, it's $83 a barrel area. a breakout would act as a positive catalyst for energy stocks more so than what they have seen. >> there is an argument that energy as a sector should recoup some of this percent loss as an s&p component. are you a buyer of that, that it

should go back towards historical norms? >> you know, i don't know if i agree that things need to revert in that way but, you know, i feel like momentum is really the key that we want to watch. and when energy has momentum, which it did over the last couple of years, we want to be there. but when we look at energy from the longer term perspective, it really has shifted from 2021 and 2022 and it looks less compelling to us. >> great to see you. >> you, too. >> mongodb reporting better-than-expected results. we'll talk to the ceo about how owe a.i. revolution is spurring grth. "squawk box" is coming right back. le gobble. i've seen bigger legs on a turkey! 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!

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bridgett is here. she has no clue that i'm here. she has no clue who's in the helmet. are you ready? -i'm ready! alright. xfinity rewards creates experiences big and small, and once-in-a-lifetime. we're back on "squawk box." take a quick look at futures on this friday, the first trading day of september. the dow would open higher by 150, s&p by about 18 and the

nasdaq, well, it's been the outperformer and it looks to remain that way, looks higher by about 41 points. shares of mongo-db reporting higher, reporting a 40% year-over-year increase in subscription revenue and 20% year-over-year increase in service revenues. welcome. it's nice to see you this morning. >> thank you. thanks for having me. >> i'm looking at a note from the streets that said your results were, quote unquote, generally good. how would you characterize them? >> i characterize them as exceptional. we delivered 40% year-over-year growth, and showed great activity from existing customers and new customers and we're very pleased about the company's position for the future. >> they say the up side was mostly driven by your non-atlas

business, which they're not sure would last and that's your sass business, correct. >> our strategies allows ou platform to run anywhere. so we give give customers brig flexibility in how they want to run mongodbe. >> what% of your growth came from a.i.-related business? >> we haven't disclosed that but we basically have huge demand

for customers using mongodbe. and the reason people really value mongodbe. investors can leverage and build smarter and more intelligent applications that truly transform a customer's business. we have lots of startups and enterprises you using it to build applications. we believe we're well positioned for the future. i do want to say there's a tendency for people to overestimate the impact of a new technology in the short term but underestimate it in the long term. we believe we're well positioned. >> i'm glad you say that. if you don't disclose the revenue of the revenue growth, how are investors supposed to accurately and adequately sort of differentiate between what hype is versus what reality is?

>> well, you're right. there is a lot of hype in the ad space today. that speaks volumes. we have over 45,000 customers of all shapes and sizes from the largest companies in the world to cutting edge start ups using mongodb. it's europe and latin america and asia. we are a global phenomenon. we also have great relationships with people like alibaba in china who are deploying it very aggressively and other partners around the world and large hyper scalers who are working with us to acquire new a.i. startups. >> there's a lot of talk about where valuations are related to a.i. and the willingness to

investors to pay higher valuations these days because of the tremendous growth opportunities that you're speaking about in a.i. do you think some of it's gotten a little bit out of hand? do you feel there's any level of froth related to a.i.? how do you view your own valuation in this current environment? >> well, we worry about revenue and earnings and we'll let the street decide what the right valuation is and we'll let the street decide the right valuations for us. i will say in talking to my friends that there is a sense that the early stage market is very inflated. there's some worry that there's lots of these new a.i. startups who have not really built a deep moat so there's a lot of capital going in, a lot of capital going to places like nvidia. so it's unclear yet, i'm old enough to have seen this

phenomenon so i think it early days there is a risk that in early days there's maybe too much hype. >> and it sounds like it would be a logical extrapolation to say there is some overvaluing in the public market as well. >> yeah, again, if you look at the tech market, obviously there was a correction last year. stocks have barely come back. i don't think the valuations in general are seen. we're very pleased the support we get from our investors and more importantly from our customers. again, that's ultimate investor decisions in terms of whether they think the valuation is higher or not. >> we'll see you soon. >> thank you very much for having me. >> coming up, bitcoin on the move again. we'll have an update next and the jobs report just minutes away. we'll have the numbers and reaction at 8:30 a.m. eastern time. you can get the best of "squawk

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are. welcome back to "squawk box." we have some move on the 10-year yield.

we are back down below 4.1%. holding in at 4.837. check out the bitcoin strayed here. this just days after the court ruled that the sec's rejection of the application was arbitrary and capricious. that is steering the way to approve an etf. the next deadline is in mid-october. the price of bitcoin trading at 26,000, down about a quarter percent right now. we are now just moments away from the release of the august employment report. our panel has assembled. they are ready to react and look at the numbers. they're ready to go. "squawk box" is coming right back.

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president obama and professor of economics and public policy at the university of michigan. and rick santelli of course is here with the numbers as they always are this time of the month. steve, we'rejust sort of discussing -- >> yeah, a looser number, third month in a row. unchanged unemployment rate. i think there might be some give there. if indeed the lay market is tightening -- or is loosening up, what you would expect is people spend a little more time on the unemployment line, not get jobs so quickly. so we might be entering a period of running with a higher unemployment rate and that might be something. and we're also talking about this, the market, if it is really a weak number could start to think about this idea is the fed really done? it hasn't quite given up that idea that there could be a hike in november. the fed doesn't want you this -- to think they're done.

andrew, what do you this i? do you this i the fed could be almost done but not want the markets to think that they're almost done? it feels like a mind twister here. >> i think chair powell is very clear that in that jackson hole speech he's committed to getting to the 2% target and is not going to take additional rate increases off the table until he hits that market. >> sarah, what do the markets want to hear? if it shows they're a little weaker, i feel like they're going to run but it's almost going to be like a head fake. >> i think the markets want a straight down the fairway number. our number is 150,000 on payrolls for three reasons, softer demand, numbers and strikes. hollywood strikes also jolts numbers, down 6 and that number is positive for the markets. i think it solidifies the fed pause? september and if inflation doesn't pick up, it probably means the fed is done and markets tend to rally after a fed pause. >> we were just discussing the

impact of. strikes and not having a clean number. and i think that's sort of an interesting dynamic in terms of how the market pursues what this number is. >> this is why you look at the details. i think it's more true of the unemployment rate number. but there's going to be a bunch of noise into that number. >> here it is. august jobs report, rick santelli's got it. rick? >> yes. jobs report for the month of august, non-farm payroll up a slightly better 187,000. that marks one, two, three under 200,000. however, the last two months are seeing a revision of three digits minus 110,000 and we know that there has been benchmark revisions. if we look at the manufacturing payrolls, they were rather strong for a sector that's supposedly in recession, up 16,000.

the unemployment rate jumped to 3.8%. 3.8%. in order to find a higher -- you go to february 22, we're at 3.8, january of 22, 4.0. that's what we're comping on and you can see yields falling, stocks liking that. if we look at the hours worked, and this is key, up 0.2. this is very significant. if you look at 0.2, it is the lowest level since we were at zero. that was february of '22. so that shows some improvement if you're looking for wages, which due to strikes and other issues seemingly are one of the pushy channels of inflation. if you are look at year over year, 4.3, that's versus 4.4, the last two months, 4.3 is the recent low. to find anything lower than 4.3, you have to go all the way back

to june of '21. average hours worked, 34.4. that's a little more than expected but it shouldn't really be a surprise. and finally labor force participation rate. now, this is really interesting. it was 62.6 precovid. that was march of 2020. and we've had a lot of months, one, two, three, four, five months and 62.6. 62.8 is stellar and that is the highest level since precovid when it was 63.3 and that was february of 2020. so we could see a marked improvement there and the underemployment rate, i like to monitor this, like u-6 is what it's called versus u-3, which is the normal unemployment rate we pay attention to. but the similarities are striking. it moved from 6.7 all the way up to 7.1%. that's the highest level since february of '22. that comp has come out several

times. we see yields have moved down at 406 in 10s, we are now down 18 for the week, 18 basis points for the week. and 2-year last friday had one of its high cycle close, the first time it closed above its march 507, it closed at 508. at 477 it's down about 43.0 basis point. when you put that together with the drop in today's report it really does start to paunint a picture. melissa lee and the panel, back to you. >> as rick mentioned, we see 10-year yields giving up some of their ground this morning. and 4.06, that's really benefiting. steve, you're saying big, fabulous number.

>> i hate to say it that way because the unemployment rate did go up and you don't want to see that but i think that's okay if the job market remains healthy, not necessarily strong. because you would expect there to be a little bit of time to mature, right? what's been happening is if you lost your job it's like you practically had another job on your way out the door before you put your stuff in the boxes. now maybe there's a little built more bit more time here. you have this entrance into the workforce. i want to give that you number. that's a big, healthy number that's not necessarily polluted by a revision or anything like that. the labor force was up by 736,000 people coming into the workforce. more of them and the participation rate ticking up. i'm pretty sure we took out the pre-2019 high. that's a good number. 187 even with revisions, that's the trend so you want to be a little careful. that's a healthy number for a

regular time period. only 75 to 100,000 in demographic growth but we are bringing people into the workforce. wages came down. that's good for the fed. not necessarily for the people working. but in terms of what the stock market might have wanted i think it pretty much rings the bell so to speak. just quickly so you know, andrew very quietly in your introduction, he's responsible for a lot of people in the former fed on this job. >> good to see you again, steve. >> good to see you, andrew. >> betsy, what's your initial reaction? just what the doctor ordered? >> you know, if you look at that tick up in the unemployment rate, i can see why a lot of people are sort of cheering, maybe it's an indication that the labor market is slowing but i think that's the wrong interpretation. actually, employment in the household survey grew. so the employment-to-population ratio is the same, but if you look at the underlying numbers, there was an increase in the number of people employed, about

200,000. so what's going on? it was just a surge into the labor force. that increase in labor force participation, i mean, that's really what the fed wants to see because that's the best way to get a little bit more slack into the labor market, have the labor market less tight is when there's lots of people looking for work. and i think that that's a really cheery sign. i have to tell you i'm sort of surprised by the overall top line number and the reason is in the last ten years, august has always been understated in that first report. so i don't know what to think. is this going to be the 11th year in a row in which it's understated and therefore the revision will be up next month or are we finally getting a clean read on august? but this was a stronger number than i expected. >> i'm going to weigh in real quick on that, betsy. there were only 8,000 additions to the government side. the expectation was going to be larger because there were fewer fires in july and i don't see

yet how the strike and/or the bankruptcy has worked into this. >> speaking of, steve, the revisions lower, 110,000 prior. how would you sort of assess that? why don't you answer the question, too, whether you think this is just what -- i don't know, jay powell doesn't have a ph.d, i don't think, but is this just what the doctor ordered? >> they want to see softening in the labor market, they think a 3.5% unemployment rate is too tight. i kind of agree with betsy, a little higher unemployment rate and a little less tightness in the job market. >> well, everybody lives with the fear that once you start going down you keep going down through normal levels but you go the to get down to get to that place where that can really start to happen. i think 187 is a very healthy number. i think they may have missed some government unemployment, which is always ironic to me that the government misses

government unemployment and they come back to revise that later. but the revisions tell you in the reduction of the trend seven out of seven months is -- >> deci was disturbed by some o the inflation numbers. i think the fed really does want to be done and i think there's a couple of issues they ought to play really close attention to. we could call this goldilocks, we could call it peach porridge perfect. in january 472,000, multi-play 187 by two and you still don't get up there. the deterioration is large, the significantly large revisions make me nervous. it distorts the kind of view that we have and how much we slowed over the last several

plus months. i do think the earnings is something to pay attention to and people coming back in the workforce, very good. it's all these one-offs. big article in the journal today about temporary workers falling and how this time it's different. all of these things to me are slowing and the hump on this is that the reason all this is going on and the reason the fed likes it is because their models say this needs to happen to see inflation move lower. the problem is there's so many seasonal issues and assumptions in these models that by the time smoke clears, we might not describe this in another seven to ten months as goldie locks, we might describe it as the mid point of the ski slope we are now on on some of the metrics involved in the labor market. >> let me interject very quickly. the market is dialing out in september, down from 11% december -- >> in november? >> dialing out a little bit in november. had it been at 42% and now it's

down, fresh quote here, 33%. >> why would they look at the events of this week and suggest that they need to do much more, if any more? >> it's less. >> that's what i'm saying. it's a rhetorical question but it's like the bostick play. it's like you can't look -- if it was looking at the pce, if you look at this. they can only have one reaction coming out of this. >> okay. but the question is for in terms of the reaction that we're seeing premarket at least with the gains strengthening and futures, how long will this last? isn't it -- sara, isn't it buy the rumor, sell the news? we know now the fed is at the end. do we believe that? and don't you think you lock in gains? the rest of it is going to be a little bit eager in terms of the road and, you know, just readings and what the fed does, what the fed message is. >> well, rick brought up a good

point, though, with all the numbers in this week. yesterday's inflation numbers did have pretty strong services inflation. i agree if you price out more rate hikes, it solidifies the fed doesn't raise in september or not likely in november either. there's one more data point that's important and that's ppi. that will be the next data point before we get to earnings. you look at markets, though. when the fed tends to pause, they tend to rally super equities and fixed incomes. i think technology stocks will continue to lead the way. they're going to be the beneficiaries of lower inflation, low er interest rate and artificial intelligence. you saw yet another tech box showing artificial intelligence is a real driver of their business and it puts to rest the questions around broadcom. i think the news is continued up side until we see more evidence of a recession.

these numbers are slowing but not showing a recession. >> let's not forget where positioning is not everybody's been on this train. and as you get closer towards the end of the year, that chase for performance is one thing that says, no, you are don't take profits here, you get on the train or you risk the train going further and you're standing at the station with your brief case wondering where all the action went. >> that's a great point. active managers had a very tough time feeding the benchmark this year. it's been a very narrow trade with a handful of tech stocks. there could be a a lot of fomo. and there's a lot of cash on the side and they're wondering how do i get become into this market because my t-bills are not paying what the markets are paying in terms of returns. that money could back into the market in the fourth quarter. >> andrew, let me ask you this question. when you look at the federal reserve and how they're thinking

about the dynamic of inflation versus growth year, how do you think they let this play out? do they take another look at this in november and kind of take september off? is that your expectation? >> that's my expectation now. i think the inflation numbers are the most important because that's what fed chair powell is very focused on. he wants to get back to that 2% target. he can't be any clearer about that. and until inflation hits it, i think he's not going to take additional rate increases off the table, nor should he. there no substitute for victory. >> give me your overall assessment here before we go of the job market. would you say it's still healthy or do you worry about the ski slope that rick is on and i don't imagine rick wearing goggles and a hat and mittens and everything going down the mountain. >> i think the job market is still quite strong. i personally am very cheered that we're seeing people continue coming to the labor market. i think it's also worth noting

it was women who came in more than men. we're just seeing unprecedented high fema labor force participation and that's making the fed's job so much easier. the more people come in, the more the labor market can expand and mean that wages are not a source of inflation. but i just want to get in one thing, which is chair powell really emphasized jackson hole that he's paying attention to this really strong consumer spending and i think the data that has me worried, not today's labor market data, that says to me pause, pause, pause, but it was that strong consumer spe spending data that continues to suggest that consumers are out there using their dollars and driving up prices. >> betsy, don't worry about it because taylor swift isn't touring in august so it's okay. there's not going to be any more consumer spending. >> going to leave it there, guys. thank you so much to our jobs panel, betsy, sara, steve and

rick. >> coming up, the last 24 hours have been stuffed with economic data that is closely being watched by the fed. will the numbers do anything to impact the next rate decision? we'll talk to roger ferguson next. "squawk box" is coming right back. what do you mean? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep, 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. i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so...

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we have breaking news. what do we know, emily? >> well, at this point we know

that the ftc is going to be able to come to an agreement with amgen, the bio company. this is going to be a huge purchase, $28.7 billion purchase. of course this agreement was after the ftc initial lly movedo block the sale in may over concerns that amgen would use business practices. but under the agreement announced this morning, they would use certain tactics like bundling medicine together and go forward on that purchase. for the ftc a lot of this has really focused around anti-competitive behavior, trying to make sure a lot of these pharmaceutical companies are not engaging in it and you've seen the ftc come to a few agreements, just really trying to address some of these

things in terms of anti-competitiveness and how companies actually use and negotiate with other products. >> emily, thank you very much. we'll keep an eye on both stocks. let's get to dom chu for a look at any stocks since the release of that report. >> it's been thinner trading as we might expect over the labor day weekend. but among some of the active stocks, you have to look at what's happening with the technology trade. you may recall that for most of the morning the nasdaq and the qs have been trading kind of beneath or underperforming the rest of the market, broader s&p and the dow industrials as well. if you look at the qs on an intra day basis here, the more outsize move happened up about one third of 1% higher than what it was as interest rates tick lower. i want to show you three of the charts that may be indicative of

that nasdaq chart intra day. take a look at apple on an intra day basis. you can see that spike move higher there for apple shares, now up 2/3 of 1%. and microsoft, a little bit more of a dramatic up side move from microsoft, slightly higher than what apple did. now it's up almost 1%, and i'll end with tesla as another indication of that mega cap technology or tech-related trade here. we did see some volatility here and back to flat. keep an eye on some of that mega cap trade technology, scott. >> we will. yields down, tech up. same story. dom chu, thank you. for a closer look at the jobs numbers, let's turn to roger ferguson. he's now a fellow at the council on foreign relations, a cnbc contributor as well. nice to see you. so, jay powell sees this this morning and says, what? >> he says, look, first, we look at all the data that have come in, and try to draw a general

picture out of that, and i think there are three separate forces that are going on here. first, over the last couple days, we've seen consumer spending still is very strong, which is net positive, but could feed to inflation. second, we had some inflation numbers that i would say are a little mixed. so, headline inflation's staying pretty steady. that 0.2% month over month. good story. looking down at what's called the core pce services focus, that was maybe just a little high. so, you know, a little bit of a mixed story there. today's job numbers showing what i think is a healthy economy, bringing new people into the labor force, leading to a somewhat higher unemployment rate, but overall, i would say this looks like it's a mixed story, not one to be too panicked about and perhaps supporting a pause in september, but not taking future rate hikes off the table just yet. >> rick santelli used the word

goldilocks. you could look at this and say, well, it shows an economy and a labor picture that's weakening, but it's not too weak. so, it's maybe just what, not only the fed but investors have avoided this morning? >> i think that's a fair statement about the labor force, but i think we need to, again, today, i know, is jobs day, but one has to think through all the data we have seen all week, and i would say, roughly positive in the sense the economy is still moving forward. i'm not sure yet that i would be certain that we're getting to that disinflation, back to 2%, sufficient to sort of say, future rate hikes off the table. i think it is premature. so, it's one meeting at a time, very data dependent. september probably the market has it right, probably a pause. november, i think the market may be discounting that being alive, meaning maybe just a little too early until we see a bit more data, and don't ignore that core pce number, which was a little hot. >> so, you disagree with bostic,

who says, you know what? we've done enough. not only that, i think we might be back closer to 2% than some people would think. what do you make of that? >> look, i think the minutes showed something very important, and president bostic's comments recognize that or reflect it, which is there are different points of view on the committee. yes, president bostic is speaking for himself, and i think reflects some individuals that say we've done a lot, let's take a pause and wait and see and maybe these numbers will suggest to him that they're done. we heard from other presidents that say, well, no, we're not sure just yet. you may recall that susan collins, the president of the boston fed, was certainly open to one more hike, and i think some of the others will be as well. so, i think we have to be careful not to say, well, one of the voices speaks for the entire committee. there are, and i think there will continue to be for a period of time, different voices. bostic reflects some, but there

are other voices saying, well, we're not sure just yet that we can be totally confident of getting to that 2%, so let's keep the november meeting a live meeting. >> great to have your instant reaction. roger, thank you. we'll see you soon. up next, the final check on the markets as we count down to the opening bell on wall street. at pnc bank, you can find us in big cities and small towns across the us, where our focus is to always support the people who live and work there. because you call these communities home, and we do too. pnc bank. the not-so-secret to our success? earn and keep trust. build and maintain financial strength and stability. deliver solutions that meet complex needs. do right by customers, clients, and policyholders, always. repeat daily for over one hundred and seventy years. massmutual. partnering with financial professionals,

benefits brokers, and institutions. ♪ ( ♪ ♪ ) since i was really young, whether it was basketball football or track i've always been one of the most athletic ones on my team. so i had a lot of faith in myself. but my second year in the league, having drops and things like that can mess with a young kid's confidence. i realized natural talent is not enough. it's always work ethic. once i really understood that, i never looked back. (crowd cheering) ( ♪ ♪ )

news alert for you. robinhood just filing an 8k with the s.e.c., entering into a share purchase agreement with the u.s. marshal service to buy 55.3 55.3 million shares of its own class a stock. these were the shares that were seized as part of the criminal case against sam bankman-fried. about $10.96 per share for a total of nearly $606 million. investors digesting this morning's jobs report. futures right now are sharply higher on the back of the report. the dow looking to add 164, s&p higher by 25, the nasdaq up by 86. john mowry, cio at nfj investment group, great to have you with us. does this mean it's a go for big

cap tech, a go for names like nvidia, the higher multiple stocks? >> i like the jobs report but i'm not sure i would be as bullish on large cap tech, and scott knows this. i was very bullish on some of the technology names six to nine months ago, but we have pivoted. we are more bullish on some of the more interest rate sensitive areas, the areas nobody wants like banks, real estate, and some of the overseas names in the emerging markets, so i think large cap tech names have great fundamentals, but the issue i have is the valuations are quite high and what i get a kick out of is the reason everyone sold these names is because rates were high. now rates are even higher and the multiples have gone back to where they were before people sold them. >> john, you think the correction that we had the first part of august is now done? or is the risk now that it just comes back in september? >> it's a good question. typically, you do see softness in august and september, so i wouldn't be surprised if we have some more choppiness, but i

think that the real catalyst is watching that cpi. one-third of the cpi is shelter, and that is not rolled over. in fact, if you look at the st. louis fed, if you strip out that shelter component, cpi is at 1%. if we get the cpi to roll over, i think that's going to be a big boom for the equity markets. i think that's the catalyst investors should be watching closely, and i think that will push through to the end of the year. >> so, are you as bullish as you have been? you don't sound quite as much then. >> well, i'm not as bullish on some of those areas, so i'm not as bullish on some of the technology names, some of the semi names. the sox is trading at ten-year high multiples. i would encourage investors to -- >> where do you want to look? energy's the only positive second in the month of august, and that was barely. right? so, where exactly do you want people to look? where do you think the best value is right now? >> i think the best values are in banks. i think the best values are in

reits. the reason for this is because the yield curve is deeply inverted. if that begins to steepen, you see the shorter end come down, those are going to print money, and investors are going to get a lot of relief. >> thank you, john. >> thanks, scott. >> that's john mowry. join us on tuesday. good holiday weekend, mel. >> "squawk on the street" is up next. ♪ good friday morning, welcome to "squawk on the street," i'm carl quintanilla with leslie picker, mike santoli at post nine of the new york stock exchange. premarket does like the jobs number. 187,000 is above consensus, but june and july get revised lower by 110,000. unemployment spikes to 3.8%, highest in a year and a half. wages are light. ten-year yield drops to about 4.08%. our road map begins with the last jobs print, showing continued strength in the labor market