we'll keep things posted i'll send things back over to you guys. >> okay dom thank you for that. what a day. what a program. lots and lots and lots of news between scott benson, the jobs number and the food fight. >> do you have more to do. >> and all of that? >> i'm gonna go take a nap. >> have a great weekend, everybody. >> i am, i'm on a nap. we'll see you on monday. >> squawk on the street begins right now. >> party tonight. >> good friday morning. welcome to squawk on the street. i'm carl quintanilla with jim cramer and david faber at post nine of the new york stock exchange. futures are a bit mixed. on february jobs up 151,000, the 50th consecutive month of job growth. but the work week, news cycle lows and u-6 underemployment. biggest jump in five years. ten years still below four and a quarter. and that's where our road map will begin. payroll growth coming in a bit less than expected. s&p coming off the worst day of the year so far. >> plus broadcom is the best

stock so far in the s&p this morning. the ai boom of course leading to a strong sales forecast. but it's a different story for tesla. it would be on pace for its seventh straight week of declines. it's already down 35% just this year. >> let's begin with the jobs number adding to this volatile week for stocks. earlier this morning on squawk box, the treasury secretary, scott bessent, offered his take on market behavior and the economy. >> we're trying to get rates down. and, you know, could we be seeing that the this economy that we inherited starting to roll a bit? sure. and look, there's going to be a natural adjustment as we move away from public spending to private spending. the market and the economy have just become hooked. we've become addicted to this government spending, and there's going to be a detox period. >> that was the headline from most of the stories. jim, the detox period president calls it a disturbance. he calls it an

adjustment. >> i think the people i deal with in business are saying it's fluid, fluids, got this nice non-pejorative word. and it's just you got to be ready for anything. it's rope a dope. but, david, last night i said that we are now in the clubber lang phase, though. okay. the prediction pain. and when you have a prediction pain, then you're going to get what we have, which is that everything's mixed, even when we get a number, a series of numbers that i actually liked, we can't keep the game know. forecast. >> forecast calls for pain? >> yes. forecast calls for pain. next week i probably i expect the i expect to start hearing about auto. expect to start hearing about europe. and i think it's going to be ugly. >> although the jobs number was not that ugly. >> no, no, i'm saying that it was viewed as good. yes. and then subsequently people say i'll sell. they shouldn't be selling. the number is good number. >> right. >> but i'm just saying that. >> you just said the forecast calls for pain. >> well, i'm saying the

president is giving you a forecast and then he's making it happen. he the president is applying pain as well. secretary basically said, hey, you know what? this is an adjustment. now the adjustment. >> has been this has been a. consistent theme for him. he's leading with we want to get interest rates down leading with i'm focused on the ten year yield. he's been saying that numerous times, leading to actually some to believe that again, there is not that big a concern for a decline to a certain extent, if it can actually be accompanied by a decline in rates, which conceivably then will put us on a more supercharged level to, to, to have the economy grow perhaps into the mid term elections. >> i don't well that's now people are starting to talk about look can he get all this done by the midterm elections. i mean you know i don't think i think it's a continual process. yeah. you know carl, when i look at what the president wants to do, i just say he's not focused on the stock market because he has bigger issues and the stock

market's not that big. we're focused on the stock market because it's what we do for a living. and the most of his comments send stocks down. maybe you get, say, the mexican. i read a lot of publications in mexico from mexico. and you know, they're they're very excited because they're saying she's got report quoting. >> do you read them in the in spanish or english? >> i get a translation every day because all that business i got down there, oh that's true. i'm always trying to figure out what's really going on. and there's just like approval rating of 80%. >> yeah. >> she's a. >> compared to our president. >> you want to stop china. >> you know we'll. >> stop china. you wouldn't soldiers on the border. that's good for us i mean she is someone who obviously has figured out how to have constructive engagement. now, secretary besson was talking about what went on with zelensky when he was here, and it seemed like that was the textbook of how to have non constructive engagement. it is interesting to see a technocrat seems a technocrat. she's not someone who is a firebrand and she's a but she's left. she's approaching it very

businesslike. and i think that that was what was expected by president trump. like look let's let's make deals. and she said, okay, let's make some deals. >> well, it's one thing to make a deal. it's another thing to make a deal and then change your mind about the deal in, what, two days? >> well that's by that's that's the biggest problem with our market is, is that the inconsistency is just a nightmare. i mean, i'm so glad i'm not jim farley or mary barra because they could wake up. they wake up every day and they're saying, well, canada. yes, canada. no, i got another month, but maybe i don't have a month. i mean, these are big companies, big ceos, and they are not being they're being surprised every day in a way that i would not think possible. >> we had brown-forman on yesterday. he's like, look, you guys know more than i do at this point. the story, in his words, seems to change every day. and the commentary this week alone target, best buy, costco last night. >> you know, look i look i have not had kirkland vodka yet, but i am sure it's every bit as good

as tito's. i'm not kidding. the price is very low. remember they do $4 billion in liquor sales. the largest is total wine and more they do $8 billion right. but i'll have kirkland if you come over to my house. sure. and then i've got they have these cans. they have these pre-made drinks. yeah. you won't know the difference. i'll serve you one of those. why do i have to go spend a lot of money on. >> tito's drinker? sadly, i'm a tequila drinker. by the way. >> is tequila. >> is it in or out under the usmca? carl? do we know? >> is it compliant? i don't know. >> you would know. >> no, i mean. >> you tell me. >> no, it's. >> actually i. >> said all my all our garbage is in texas, but i'm not going to i don't want to take the. >> tequila. mca compliant. it's a simple question, right? we don't know. >> costco is 998. that's that's viable, compliant. >> that's part of the problem that carl just raised and why you're seeing these reactions in the stock market as a reflection of as businesses try to figure out what is the landscape look like. and to your point, jim, it's you're trying to plan

you're trying to make capital. i mean, you know, you can't play capital allocation decisions and you can't really know. >> i mean, do we run the palenque round the clock in order to beat the tariffs? that's where you make bets. it's like you put these big pinas in david. >> which was a great, great question from andrew with bessemer. and that is if you are a ceo and you're thinking about investment, do you wait to find out if this is for good and a new level and then you can make your move? or are you wait to find out it'll eventually roll off and then make your move. that's the behavioral science. >> you better have really big profit margins like costco. now, the thin margins when it comes to the customer. but they have this great. they had huge growth in the card where the money comes from. they import a lot of vegetables and they're not having problems because they're powerful. you know you got to be powerful. walmart is powerful. this is about scale. the companies that are dealing and making and dealing right now in the fluid situation are the ones

that have scale. and they can basically say, guys, look, you're not going to work. we're taking your profit margin because we don't know what's going to happen. so it's going to come out of your hide. and that's what walmart can do. and that's what costco can do. and i don't know about the other guys i feel bad for them. they're they're at the mercy of this craziness. >> yeah. not to mention if there's some merchant who makes things in mexico on etsy trying to sell them in the us, how is that going to work? it's bad. bad? yeah. pain. pain. >> no i don't i don't think people understand like let's say you're i mean, let's say you're ten times your 20 times what we're trying to do. my wife with this fosforo i do you keep it there. do you move it over to texas. do you find a warehouse? do you over? do you work overtime to bring it in? this is just one industry. but the tequila industry is a gigantic industry now. i mean, there's autos and autos and premiere, but when you look at what if claudia sheinbaum thinks that china is wiping out their textile industry and she decides

to put a tariff, then i think president trump says, okay, look, china, mexican beer. >> i mean, again, you know, mexico, canada. but china is obviously 20%. now that is the big it's the big focus eventually. and april 2nd is, is looming. when we're told we're going to get a lot more detail, if not the actual specifics about reciprocal tariffs. but again, a lot of uncertainty between now and then, not to mention when that day comes and whether or not we get clarity in terms of what paris will be on all of our trading partners, or whether it's going to simply be a moving target. >> well, look, i think when i listen to you guys, i just say, why would i ever make a decision? maybe i don't make a decision. >> right. fine. but that's not good for business uncertainty. >> ipos, capex. >> i think he must be listening to me in some sort of like voice box, like when someone, like a bad guy is talking to the cops. >> disguised. >> listen to innocent. >> it's bad for business, okay? and therefore stocks are going

lower. now you have a broadcom and broadcom. broadcom was it you yesterday you said that you would take hock tan to the bank. that was you right. >> no that was you. >> yeah. >> there you go. i just need to hear it from somebody because my wife i. >> did set you up for it i will. >> say oh no, you cheated off. i did know you cheated off. >> i said, here it is, jim. >> you have to have a perfect quarter in order for your stock to go up, right? it has to be perfect. >> there was a great moment with bessent where he was asked about the trump put. when it comes to stocks, whether there is such a thing or any kind of pain threshold that would trigger a reversal of policy. here's what he said. >> president trump takes in a lot a lot of information every day. and stock market stock market is part of it. that, again, is somebody who was on the other side for a long for a long time. and you say where you know, where's the trump put kick in. >> there is no trump put. >> well there's no put that the trump call on the upside is if we have good policies then the markets will go up.

>> yeah i'm going to write that call. just write it put it. obviously there's no there's not a lot of upside. so you want to write the call. >> there isn't. no about a three year call. can you do that. >> i don't know a long term call i don't know what the premium would be. look, i'll tell you where you want to buy. europe is fantastic. >> the new. >> the. >> new acronym is mega make europe great again as we have the biggest four week inflow to european equities in ten years. >> it's incredible. michael sembello has a piece with jp morgan. he's obviously always the best. and he's talking about, you know, maybe pulling out nato 90,000 troops. i mean see you later. i do think that the germans are expanding. the germans are doing what we did in 2009. >> narrative change. i mean, europe has just been this moribund giant that can't get its economy growing at all. germany's been in a deep recession, and now suddenly what? it's all off to the races? >> no. >> no, they've decided to do. there's just they're doing

anything they can. and doing the bazooka by. >> deregulated. >> it's malcolm x, it's malcolm x. >> businesses that haven't innovated in years. they have nothing when it comes to ai. >> but they. >> that's the swiss in the cuckoo clock. what are you doing with the third man there? >> they can lever up. >> yeah, that's the point. they took the brake off and they're levering up and they're going to put a lot of people to work, and they. >> do a lot of debt capacity. >> and they're going to hire a. >> lot under levered, so to. >> speak. >> that they were a company balance sheet. they'd be yeah, we'd be saying. >> well, they have to do a lot of times. >> and they go to. >> four munitions. a lot of, you know. >> b of. >> a today. >> spend the money. >> says it's quite, quite possible that the german ten year bond out yields us. >> yes. and i think it is. and the money is flying there but they're borrowing. and i've got to tell you, i think a lot of people came into this year and they were caught the wrong way. they were caught us equity. they were caught. what magnificent seven. now they realize that, holy cow, at the end of the magnificent seven, when it was really just a couple of guys. only three. that's where we are. and the banks. the. just taking

it over there. now david's right. it's like, give me something to buy. well no, don't don't make it, don't make it. just buy the index. just buy the index. >> like i do here. >> remember when everyone bought the small cap index and the small caps were doing badly, and then they gave up everything? well. >> you were wisely averse to small caps, which. >> is. >> now why they paid me the big bucks. >> yeah. >> but i will say you do not want to compare our markets to theirs. i like spain here. >> banco santander. >> banco santander. >> i think the anubhuti is the greatest banker on earth. it's also the best golfer on earth. she's everything. every day. i'm jealous of her. druckenmiller. you know, some ham? >> i think i know somebody else who might be jealous of her. her name is lisa. >> where do we come. >> back to? >> my boyfriend and my daughter when she was teaching english. >> we'll get some more movers, including broadcom. jim mentions it rallying 10% this morning on the results in the guidance the

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secret to better odor control everywhere. >> broadcom is up sharply in the premarket after posting that fiscal q1 beat, raising current quarter guidance above street estimates, the company cites some strong demand for its custom ai chips. this is hockton talking about ai growth on last night's call. >> generative ai for sure. >> and i. >> said that before. so at the. >> risk of repeating here. but if. >> we feel it more than ever, it's. really accelerating the development of. semiconductor technology. both process and. >> packaging, as well. >> as design towards. higher and higher performance. >> accelerators and. >> networking functionality.

>> we think. >> that innovation that upgrade those upgrades could occur on an every month. >> as we face. >> new, interesting challenges. >> a lot of reiterations of by today. jim on the name. >> look, this was nothing short of an unbelievable quarter. it's been the best quarter of the year in tech. i was in shock at how strong they were, and every single part of the business. i was, of course, extraordinary, even just the regular tech was very good. vmware was great. they talked about the new customers. they have amazing customers. they always had. they had a they had google already, the alphabet, they had meta, they had bytedance. i think they now got softbank. they got arm. they got openai, maybe apple. these are just huge customers. and david, the really important thing is that let's say you thought that this well someone someone just sold the stock down seven. all right. go ahead do it. it was a 204 3:00 distracted. there's a204. >> don't get. >> distracted okay. all right. but i think what matters to me is that maybe we're beyond just

having the usual five hyperscalers. and that's going to help nvidia, maybe the most hated stock in the universe, every retail person trying to run from it ahead of the gtc, the big conference. right. in ten days. right. so i thought the winner was definitely broadcom. but it also made me think that maybe you should start paying attention to nvidia from an earnings per share cycle. because if you have that many hyperscalers could be better. >> i mean yesterday the news was obviously bad with marvel. we got it. stock was down. i don't remember what i don't know what. it ended the day down. >> but 174 down 70. >> yeah 17%. are they i mean different products to a certain extent. but. so what's going on? >> xpu. look, i think. that it was terrific that marvell got the amazon, the amazon contract for. >> to help them develop their own custom chips. >> but i think people are going to say, well, the reason why we sold it was it turned out that broadcom got a huge new customer list. this softbank arm if they're really involved is big open ai apple i would have

thought that maybe look i think marvell is great i think matt murphy is very good to see i know you really competitive but this is where he bought all that stock. but i would say that hock tan crushed it. and by the way, hock tan can i just say he put together this company out of just piece after piece. and he's got now the custom made chip that segment he owns. >> i was just going to say it doesn't sound like he's got a huge m&a appetite at this point. >> he said. he's done. and that's what everybody tries to float something intel every other day. it was supposed to be what? silver lake and now or some people are going to talk about your mets owner and mobileye. okay, fine. sold to you. but i would point out that this company is now they do excuse it is it's nvidia doing post-trade and software and that's what exactly what hock tan gave him that nvidia software layer. and these guys are doing the custom and custom is a little cheaper. and all i can tell you is, is that it's

not a two horse race. it's different. but there are two stocks that are investable. now. my chapel is a huge position. broadcom and i've been waiting for the ball out. and here we got it nvidia obviously talked to hock. tan is telling you that they're great. he didn't say anybody else was great. >> the other thing i'd add page one of the idaho statesman today. >> i always read that. >> what is. >> it is all about micron and their words. trump taking aim at one of the biggest private investments in the history of the state. and that is the subsidies for that manufacturing for micron. >> it's not a lot of subsidies coming. i think that look, they've built they've built an unbelievable machine out there. and they were doing it before. >> but that's the chips act that we're talking about, by the way, that's also planning a plant in upstate new york, i believe as well. that's talking about a lot of potential investor capital there. i don't know, can you really i mean how do you this was passed. i think bipartisan signed. >> sanjay mehrotra.

>> it's long. how do you what do you do not allocate the funds? carl, isn't that illegal. >> to attack sanjay mehrotra who is built who actually, he took this company to another level is kind of just innate. that's how great sanjay is. he look, they were giving him the money. what's he supposed to say? no, i don't want that. put it in the community chest. do not pass. go. do not pass. >> my point is that conceivably the money would be withheld. even though i don't believe. that's legal. >> they withheld it. i buy. >> this stuff. >> we will. >> get cramer's mad dash count down to the opening bell. got some upgrades today. gm jp morgan b of a wayfair zscaler. we'll watch that as the ten year yield. now down a couple more ticks to 4.22. stay with us. >> in the world of. >> investing. >> a beast lurks. >> between the numbers. some watch from the safety of the sidelines, but others saddle up

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it's showing that this is a winning team and we've just started. it's an exciting moment and we are determined to continuously improve through innovation, better product, better experiences and drive momentum in the years ahead. >> all right. that was richard nixon on mad money last night. of course gap's ceo and that is the feature of our mad dash stock looking up. >> yes. and it should. you've got a gap up seven a banana republic up for old navy up three. these are almost double what people expected in some cases. gap the flagship more than double i know a lot of people say well wait a second. is it going to make any money. the tariffs only 11% of his goods are made between mexico and china. this man has taken this company, came on first and said, listen, i got to fix the balance sheet. well, he sure has. he's got 2.6 billion in cash, got a 3% yield. this deserves to trade much higher. somehow it dropped. if you take a look at a chart of about maybe three months you'll see this thing is just just cascaded lower for absolutely no reason

whatsoever. this is the stock to buy in retail. all right i want to own costco which shouldn't be down i want to own tj, tjx and i want to own this one. and i've got to tell you, david, i think the. term oh man. >> i got. >> bad news. >> but i don't know what. >> to say. >> i can't hear a word. >> you're saying. >> that's all right. >> don't die down. >> we can. >> we can let carl talk. tell us about the opening bell here. >> atlanta could be taking share. >> i asked whether the existential threat to lulu is much more expensive. >> well. >> anything that's really expensive. listen to the costco call. and there are really good operators, carl, who are taking aim at anyone who has raised price dramatically. i've got outlaw beer on next week. they got a they got a case for 16. if you put tariffs through on modelo, that's going to be 40 for a case, maybe even more. so

a lot of companies just raise price. they use covid as an excuse. sure they have to cut. >> let's get the opening bell here at the big board. it's deutsche bank celebrating international women's day, which is tomorrow at the nasdaq. it's women shaping the future. as we're back to 57. another day here jim. just below the 200 day. >> well, look, there are a lot of people who might be saying the shorts are doing well. and what the shorts do is they have a covering rally like we had last friday. and i think that could happen again because we don't know why there's heavy selling, other than the fact that people just say, i can't trust anything. i don't know when the president is going to speak. >> write some charts out today, looking at the amount of downside protection people are buying, right. put call vix. there's still some who had called for a trip back to the 200 day. we want to see more of a washout on those other. >> indicators i'm in that i was hoping i was hoping to see a crescendo woosh. where both the speculative stuff that has gone up the palantir from 50 to 80

had gone to 120. i need to see those go down. i need to see the anything lunar go down. i need to see anything nuclear go down. there's no nuclear business. i mean, a lot of people even torture us with that. and then i need to see, i hate to say it because i like it so much. i'd like to see a wash down in nvidia. and we have. >> so you don't think 109 was. >> no. >> the short term? >> well, i'd like to see everybody out of it. ahead of when jensen huang reveals why we want to own blackwell and rubin. >> we do. have that. >> death cross on the sm. >> the death cross. >> that was fun yesterday. >> yeah, the holy sepulcher. i don't know, david. you know, i know you look at the death cross and the golden cross and the. >> and the head. >> and shoulders and the cross. >> and reverse head and shoulders. >> where's the cross of gold? i also. >> like the old double reverse morris trust. that's a good one. >> do you like william jennings bryan more than you like mckinley? >> no, no, it's a. >> big the resurrection. mckinley's dynamite. yeah, i was thinking about, you know, polk

well, but then he wasn't any good. >> i just read that you read that book, but i read it about garfield. i mean, that was. >> garfield was dynamite. >> that was a shame. >> garfield was dynamite. that guy was an assassin. was horrible. the williams. my daughter went to williams. he had a cup of coffee. they're horrible. >> i talked to about chester arthur. >> yeah. how about the phone? >> because he took all the customers in. >> i know. >> which is what we. i want that job now. >> garfield been resurrected. >> collecting all the tariffs. >> i don't know, why don't you take up the taxes? >> i don't know who. all right, we got the s&p start. we looked up briefly. we're down now. yeah right a decent jobs number. why were the ten year is jim. >> that's all i want. >> is not to ask why. it's just to do as told. >> you're really a tennyson. where are you going. there. look carl, we got a we have a market that is so fearful. and we also know. and i wasn't idly saying that you should be in germany. we got. look, if we get a dollar this week and you get german stocks up, you get the double whammy and you're caught in this market. well, the clubber. >> lang. >> why don't you mention that

this is a five month low today. dollar, yen. and santoli has been reminding us of when the yen introduced a little volatility last year. >> remember that. >> oh no absolutely. we don't want to have that carry trade on you. you have navarro. >> we do. >> and why don't you come on knives like my pal. what is he. coming up with? >> i don't know jim i can't explain. >> i can't even explain that. i mean, you couldn't explain costco. you couldn't explain walgreens, you couldn't explain gap, and now you can't explain. >> i can explain walgreens a lot. >> i think it's about time. >> i got a lot of explaining to do. >> explaining. >> all right, roll it. let's do it. let's talk about this deal. largest lbo we've seen in some time and in many ways shocking, including to me, having followed what i was aware of, talks that began early in the fall, frankly, you have to compliment sycamore on their tenacity here because there were any number of

impediments here, in fact, so many that when i originally heard about the talks, i chose not to actually even report on them, in part because i didn't want to send the stock up for a deal that, in my mind, would never happen. why? well, challenges in retail opioid litigation is still out there with a big potential settlement financing numbers that just seemed beyond the ability of a firm that typically has done smaller retail deals. and yet they've gotten it done despite, by the way, and i would say one of the people who's one of the people working on it for a long time said to me earlier, it started in early fall and was dead numerous times. in fact, in my own reporting, after the journal did report on the talks later in the year, i talked about it being mostly dead, then back to life. and here it is. let's give you the details on the deal itself. as extraordinary as it is, just to actually be talking about it, in part because it's interesting and includes some kind of new things that we haven't seen. jim, talk about that it's 1145

of sharing cash, right? that's what you're getting. it's in that way a typical lbo. it is a bit of a premium over the current stock price, but even more so over at least what the stock price was prior to when the journal did report on these talks. and again, even since then, they've been on, they've been off, they've been on, they've been off. but they got to the finish line and it includes this thing they're calling a divestiture asset. proceed. right. i'm not going to go into great detail about this other than to say it basically involves whether or not and when what they what they call the village md businesses. that includes village medical, summit health and city md. they bought all these businesses. they paid oh man, a lot of money for them, 15 to. >> $20 billion. previous management. >> correct, 15 to 20 billion, let's call it, because they didn't all buy them all purely. and then there's a jv, in fact, with cigna. suffice to say you get this security, it's unregistered, it's non-tradable. but if in fact, over the next

let's call it four years, they're able to sell these companies because tim wentworth, the current ceo, is going to be running them and trying to turn them around and is successful in doing that. you could get up to three bucks a share additional on top of the 1145. there's a split 7030. but basically, if you get up to after the first 3.7 billion, if they were to even be even better than that, then sycamore gets everything beyond that. it's an interesting security. or as i said, it's not registered and non-tradable, but interesting in that it does give you that opportunity at least to participate in the turnaround and then the sale to a third party. as for the deal itself, so many interesting parts of this, guys. i mean, i've been talking for a long time, of course, about the rise of private credit. i can remember when i did the stamps.com deal and noted that all the lenders to a large lbo were private credit. in this one, the need for financing was so large, $19 billion. remember, you're buying the equity. that's about $10 billion, but you're refinancing all the debt. so you needed an

enormous amount from different financing sources. fascinating. in my mind it's half and half i'm told eight banks and eight private credit firms are financing this. why? because there's so many different parts of the capital structure here that different pieces that that go to different areas of need for what a bank looks for and or what private credit looks for, because, you know, private credit might want a longer dated asset that's going to obviously kick off a good yield of some kind. >> you're telling me something that sounds like, don't expect another ten of these within the next few months? >> no. >> no, this i mean. really the level of difficulty here, jim. and again, you had a good beat on this continues. >> i've always loved sweeney. and sycamore and i think the world. >> won't count it out. and, you know, but this is a unique deal. by the way, i want to come back to you in a second on what the future looks like, but let me just finish up here. so that's a unique provision here or unique, not provision. part of the deal is simply the financing. we've now seen the melding of private capital, private credit and

typical bank financing together for one enormous deal. and then you got the equity check itself. stefano pessina as i've been reporting and others have as well. he owns 17%. he's the chairman. remember, he owned boots that got merged in. he ran this company for a while as it continued to just decline dramatically. but he's rolling in his 17%. let's call that 1.7 billion in equity then sycamore is good for the other 2.3 billion. now i am told they're raising some of that from outside. it's not all from one from their fund, but their own check might be as much as $1.7 billion. and again, something that many said, how are they going to do that given they've never come anywhere near that kind of allocation for a deal? so they get there. they include this very interesting. let's call it dap, right. we'll see. in fact, whether that actually can pay out get. >> some upside. i like that. >> i come back to i guess is the question as to whether this deal has a real chance of being successful. can they turn around walgreens? we talk often about the pressure from amazon. of

course, that has taken such a toll. the fact that so much in a walgreens at least, is under lock and key. we talk about the opioid litigation that seems to be kind of on the other side. we you know, that said boots. not bad there. shields asset is actually doing quite well. that business, i'm told, is also doing well. that's what you would structure potentially to sell or to spin or do something with. unclear exactly what the future of those will be when sycamore takes control. but what do you think? >> i think when we're saved the company, i think that this is a company that may have been on a death rattle. i think that they bought so much and you get that. they describe that very well. but the lock and key is really the that's the achilles heel, the actual brick and mortar amazon lurking, amazon wanting that business amazon same day amazon hourly. these are all things that just make it so the walgreens situation is too hard. now, i know that walgreens told

me that the only stores that are open still are moneymaking, which is what i think sweeney is looking at. and i do think that wentworth gave you some upside, which is terrific. i'm sure there are people who are mad at wentworth because he sold so low, so to speak. i think he saved it. i think he saved the jobs. i'm proud of what he did. yeah. >> and again, they're not talking about a close obviously to late this year. and then you'll have that drop right out. well it won't trade but it'll just be out there or you'll. >> own it. i would take that because boy you get a call on the smartest guys. >> are able to realize proceeds of at least $3.7 billion for those villagemd businesses. so if i go by, then you get three bucks. >> so i go by the comment, i get this piece of. >> paper correct. you get this piece of paper that eventually, over time, could pay you as much as additional $3. >> that's very exciting. >> you're not going to have that much transparency into the actual earnings. it's not a tradable security. so you're just going to have to hope that wentworth and that they can turn around what clearly were.

>> i'd like to just. >> buy undermanaged and. >> sell the call on the president by the call in wentworth. don't sell the put on the president. that could be deadly. >> an enormous deal for sycamore, a retail focused lbo shop that has never done a deal anywhere near approaching the size of this one. but kudos to them. they they must have worked their butts off in getting this thing, which again, so many times seemed to be on death's door, but ultimately made it to the finish line. >> no, that's the takeaway. yeah, it was a fabulous report, david. fabulous. >> well, it's definitely leading the s&p today followed by broadcom which we mentioned jim also supported by energy. as we've got the s&p energy up almost 2%. energy secretary is going to seek some 20 billion to refill some of the spr. >> now he i've done a lot of work on the energy department. they're going to make that into a powerhouse energy department. kind of got stuck on nuclear and on stopping the big projects that were in the gulf that are

so great. i come back and i say that and i'm going to the gulf. it's this energy department is in favor of making us into an energy powerhouse. it's not talking about the price of oil. it's talking about becoming by far the leader and. >> already an energy powerhouse. >> we are. no, i'm saying. we're the largest i'm. >> saying in the world. >> no, but i'm saying we could become this swing factor in liquefied in lng worldwide. the germans could take all of ours to shut down russia. the russia gets a lot of money from them. >> well, they have shut down russia. >> well, no, but they're still, you know, it's always one step away from re from getting that thing back up. >> nord stream. i thought it got blown up. >> no, no, i mean they want they they're not saying listen we don't ever want any russian. that gives. it would be great if you're pro ukraine. but they haven't sworn it off entirely. >> if all that's. >> true. >> they haven't. >> done it. is oxy done going down? >> geez. >> it's chevron that's got the

yield with rates where they are. if you want growth oil it would be i like qatar because it's natural gas which is $4. natural gas is really well a lot of people always want occidental because it's buffett's company. it's not as well run as kotara. it's not as well run as chevron, which is really lagged. exxon was up yesterday when oil was down. a lot of people were smart to buy that one yesterday. look, i like i think you have to have an energy stock in your portfolio. you have to. the best ones may be the master limited partnerships. enterprise products partners is doing very well. epd, i don't know. there's a lot of ways to make money down there. >> biggest laggard by far is hp. jim. this is going to be a very rapid 52 week low. >> that was a terrible call. the conference call because mary i think was way too bullish. it was when they start telling you everything's good good good. oh but we did have some 800 basis points of margin pressure. no no you start with that call by saying okay we don't have the horses and we're going to get them, but we don't have the

horses. you do not start optimistic. and i like mr. neri very much, but he was way too glib about the problems that are facing him. and he should have been more apologetic about what he did. >> well, what are the what? how do you characterize the problems that are facing him? >> well, first. >> he. >> tariff uncertainty. okay. well, that's facing. >> a lot of people. march, march. >> the other guys are killing it. they're taking taking big share from him. he starts you know he's focused on that acquisitions that i don't think. >> the one that's not going to happen. juniper yeah that's been challenged by this. >> current that. >> but he just says i'm very proud of the quarter. don't be proud of a bad quarter, people. ceos, listen to me. when you have a huge miss like he did when you have a gigantic decline in gross margins down 680 basis, a weak server, numbers that were just terrible. you have big work reductions. you have tariff uncertainty. it was a terrible quarter. why not just say, you know what, we didn't do a good job. and then i then i would

say, okay, well let's let's work on that. and you had to do layoffs. you biting the bullet. that's terrific. but you can't be glib. and i think part of the problem is he's got this great optimistic nature. but sometimes you have to just say, you know what? we didn't deliver, and you have to swallow your optimism and come in a little more humble. >> speaking of optimism, jim, a couple calls on tesla. we're going to talk. >> to dan ives next hour. >> who reiterates 550. >> green jacket goes to 200. pink jacket goes to 350 okay. >> the other though is gm. cowen says their base case is these tariffs last maybe some weeks or months. gm 105 target. >> that's target i mean what am i supposed to do with that. what do i do with that. i'm like a serious professional. i don't know what to do with that. i don't i see you, i take 105105i do, i have 110. do i have 110? do i see check? i got 120 in the back. i checked to the left. i mean what am i going to do with

that. >> i don't well you could just. >> so i mean like like what if she's like what is that guy doing. mary's probably saying, i'm the ceo of gm. don't do that. we're seeing a lot of stuff that doesn't, you know, come on, play, play by the book here, mr. neary. ouch. >> yep. >> what is navarro not know that he's not on my hour. what time is he coming home? maybe i'll drop by. >> oh, my god, again. they're going to drop by. >> all right. >> never mind. >> oh, you're so cranky. happy birthday, happy birthday. not yet. not yet. don't rush it. >> all right. yeah. no. next week. yeah. i'll be in singapore along with sarah for our big cnbc. converge conference. yeah. >> i'll be in san jose next week. >> no kidding. >> gtc. >> oh, gtc. >> gtc. remember nvidia. yeah. oh alas poor nvidia. >> what's nvidia. never heard of it. >> after two presentations this week you get a. >> little more. yeah. >> uric uric is embedded. >> uric. you're. >> oh alaska.

>> got it. there you go. >> got it. >> little shake. he has to brush up on his shakespeare. >> i do. >> we do have some videos up almost 2% here as the dow erases some opening losses. up 100 back to 5760 s&p bonds. of course we're watching yields closely after the jobs number and the workweek. new cycle low at 34.1. we had the ten year drop a bit to 4.22. getting a little bit back here at four and a quarter. be right back. >> with the bond report is brought to you by pimco, a brought to you by pimco, a global leader (vo) weight loss. for so long, i felt stuck. but zepbound means change. zepbound is for adults with obesity to help lose weight and keep it off. it's changing what i believe is possible when it comes to weight loss.

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morgan stanley really steals the thunder here. nucor. and the reason i say nucor is because there's one thing claudia shamans shaman, the president of mexico is just totally on board about chinese steel. now, the way that they've been getting steel into this country, china is through mexico. if she shuts that down, it really demonstrates that she shut it down. she's going to be able to cut a better deal than anybody else in the world. and that means that steel prices are going to go up, no matter how soft you think the economy is. they're using 167 target. i would say this thing can go back to its high. let's go to the 180. and so if you this is a great company. it's the best steel company in the world. largest in america. and i just think if you really are bullish not to put the call that's whatever. that's option talk. if you think that the president's plan has has a some gravitas, go by neutral. >> and you think they'll pass it on and it'll get accepted. yes. >> yeah. and i got to tell you nucor has been hurt so badly by this transship chinese steel.

and it will be shut down. we know which is the which is chinese and which isn't right, because mexico has got. >> plans on some rebar, as. >> i recall. >> so i just think we're starting to see some pricing. and again, i know autos are going to be weak 102 price target for it. do i have 105 105. do i have 140 in the back at 140 on the phone i got 150. but i would say that nucor is as easy as anyone that i've seen, and the rest of them are so darn hard. we all come in. i was telling david during the break, this is just a monumentally difficult time. and i told him, i said i felt very inadequate this this hour because everything is happening quickly. i don't know whether there's going to be something new and, and you want to do your job and you do your job. i look at broadcom costco. you own the call for kroger. and you know like i got up at three to listen to what i wanted to value out of it. and it's very hard to do. >> value added. >> how about tonight real. >> quick. >> i'm just going over what i think is going to work. you know, i just feel like i got to try to get back on my game and give people what you.

>> got a long. >> day ahead of you. >> i do, freaking out what's going to work. >> oh, you know. >> let me know. >> i admit it, i mean, i admit that i'm flummoxed on a lot of things. so i say that lulu is going to be hurt by athleta because richard dixon from gap, i don't know, do i come out and say buy nvidia ahead of the gtc? well that's that. stock's a nightmare. this is what we think about. and other than have a great weekend. yes. and have a safe trip and happy birthday monday. >> thank you. >> we'll see you tonight jim. mad money 6:00 pm when we come back peter navarro in a minute. >> i'm alison lundberg, strategist at americaneagle.com. wagner came to us with a goal to make their website user experience seamless and simplify access to product information for customers. we build

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the hood that are rallying today. energy for instance stocks up 1.4%. utilities. so it's a little defensive. technology is doing better up a half a percent. real estate another 1% for the week. the financials group down 6.25%. we're also tracking for big weekly declines. the s&p, for instance, is down more than 3.5% on the week. the nasdaq down almost 4%. take a look at treasuries. it's been mostly buying treasuries with lower yields. that continues today. but there was a little pop yesterday off those german bund yields which have gone crazy lately. the ten year yield 4.25%. we'll digest jobs in just a moment. also big interview just moments away. white house senior counselor for trade and manufacturing peter navarro with us. his take on the latest tariff moves and jobs data. it has been a week, but first 30 minutes here into the trading session. here are three big movers. we're watching. broadcom shares higher after stronger than expected numbers and

guidance from the chip maker. more on the street's reaction and what it means for the semis overall which are now technically trading in bear market. which means they're 20% off their recent highs though that's why the tech sector is a little bit higher today because of broadcom. tesla on track for its seventh straight week of declines. that's the longest weekly losing streak on record for tesla shares, now nearly 40% lower since president trump took office. more on the tesla trade coming up as well and what to do there and then some big sector moves this week. banks on pace for their worst week since august 2020 for energy and consumer discretionary on track for their worst weeks since 2023. amid all of the back and forth over trade concerns. weakness in the economy. we did get the jobs data, and i do think it's a relief, the jobs data for february because it wasn't weaker. and the fact that we did see job growth in key parts of the economy, that was good. 151,000 jobs in february.

it was less than the consensus at 160,000. the unemployment rate did rise to 4.1%. that was also a bit of a surprise. consensus was 4%. average hourly earnings. and this is important because we're on inflation watch. they matched expectations only rising 0.3% for the month. and also importantly the increase in january, which was a very hot wage number, was revised a little bit lower to 0.4% where the jobs were well health care biggest job creator. again, financial activities, transportation and warehousing, social assistance where they weren't retail food and beverage retailers and then so federal government subtracted 10,000 jobs, but government payrolls overall were up 11,000 jobs thanks to state and local governments, which i think came as a bit of a surprise, but also might be stale. there's the doge impact on the federal workforce down 10,000. i'll just dive a little bit deeper, guys. there are some points of weakness to pay attention to. overall, not a terrible number. doesn't change

anything for the fed, which is firmly on pause, however. so the rise in the unemployment rate we talked about, it reflects more people who permanently lost their job, and also the participation rate fell by 0.2 points. so it's not like it rose for the right reasons. it rose showing some weakness. joblessness was particularly notable among hispanic people and those without a high school diploma. interesting. the number of people working part time for economic reasons actually surged. we're at a four year high on that number. and then, david, the number of americans holding multiple jobs, which is also kind of a sign of weakness, climbed to a record high, nearly 8.9 million people. so just some things to be aware of as we try to figure out where we are in this cycle. >> and to the to the extent that there is any reflection of the doge efforts in this report, not much. >> a little bit. 10,000 subtraction from the federal workforce. this is again the february number, but not much that that number should go up. it was i think the most

surprising was that state and local kind of added. and then we got a net positive on that number because that number should subtract. but a lot of the research and the economists who've been writing on the doge impact show that the percentage of the federal workforce, as a percent of the overall labor force has been declining. and so it might not be material. now, if you combine that, though, with what we're seeing in the private sector, which we have seen a step up in layoffs announced, you know, a few thousand here, a few thousand there, we're going to talk to hpe ceo next. >> our challenger yesterday was multi year high. yeah. >> so then that you know combined with some of these efforts doesn't bode well for future jobs reports. but so far this report supports the soft landing kind of theory on the economy. >> although santelli made a point to mention workweek which is the lowest since 2010. isn't this the isn't that an argument that if the if an employer wanted to add jobs right now, they don't need to, they can just add hours. right. >> and then and then people have

been saying the hours reflects weakness because it's a tight job market and nobody knows, you know necessarily what to do. the next step can be layoffs. if those hours go down. that's certainly out there. but just in terms of hiring, it's still happening at 150,000. you know, there's commentary and it does speak to some of the stuff we've been talking about the consumer, the value oriented consumer, costco cfo, for instance, i pulled out, consumers are still showing that willingness to spend, but they're being very choiceful when they're spending their dollars. and we think that that's likely to continue and maybe even become more choiceful. so they're not going into soft or weak or recessionary. but choiceful is a very popular word. target uses that word too, on gap gaps way back. i mean, they're having a nice little resurgence growth across all income cohorts. share gains were led by lower income cohorts. this was with strength in the old navy brand, whereas gap brand outsized share gains were led by strength in both the top and middle cohorts. i think it's more of a gap story than a consumer story as they've seen a

good comeback and really, i think have proven to that there's value there for the consumers and guys. you know, we got the beige book this week, which is always one of my favorites because it's anecdotal data from all the different fed districts, and it feeds right into the fed and their conversations about the meetings. and it wasn't great. i mean, here's some snippets from random parts of the country. philadelphia business activity declined slightly. cleveland consumer spending was down, and some contacts noted declining consumer confidence. saint louis contacts noted that they were holding off investment due to policy uncertainty, and indicated that tariffs would result in higher prices. the outlook has declined from slightly optimistic in our previous report to neutral. there were so many mentions of tariffs in the beige book, even more so than the prior quarter. >> yeah, and more mentions of uncertainty than any time in the beige book's history, which would take you through covid two. that was weird. >> well, because there's uncertainty on the on the trade policy in particular, which impacts business. question is, does that uncertainty spill over into some sort of broader

economic weakness? i mean, the bond market has told you that there's expectations of slowing ahead. >> let's get to tesla this morning on track for seven straight weeks of declines. that is the longest weekly losing streak for tesla on record. shares have lost about 40% of their value since the president took office in january. that wipes out about half $1 trillion in market cap since then. it's larger, by the way, that is larger than the market caps of costco, exxon, oracle and netflix. our our guest today names tesla though his best idea or adds it to the list and his outperform rating is intact target of 550. joining us here at post nine this morning is dan ives, wedbush securities global head of securities. dan good to see you. happy to be here. was this a tough call a tough reiteration? >> i mean, to some extent i think this sell off is going to be an opportunity i think years from now. it's a generational opportunity because it's my view. i get, you know, in terms of all the frustration and noise, the doge, the distractions, the brand issues, even some of the sales numbers that we've seen in europe, china, i think it's going to be

short lived. i mean, my view is they have probably from a technology perspective, in terms of autonomous, in terms of the lower cost vehicle and where where i see things over the next 12 to 18 months, i think they're actually going to go in to their biggest part of their technology cycle that they've had maybe forever, maybe in the last decade. >> does that require elon to distance himself from the brand or recommit himself to the brand? >> look, i think this is one where i continue to believe the bet for the ages was musk's bet on trump because of autonomous deregulatory. and i believe autonomous is worth ultimately $1 trillion alone to the ultimate story from a brand perspective. look there we think about 10 to 15%. maybe the sales decline is related to some of the brand issues, but based on all of our survey work, we think only about less than 5% of tesla holders today. so tesla owners will ultimately think twice, potentially from a brand perspective, because it must. that's still pretty limited relative to where i view

actually the whole growth opportunity. >> what about the whole distraction? i mean, he's always had a lot of jobs and a lot of ceo roles. and so this has always been a constant question. but now that he's spending so much time in washington with the president, you know, working on doge, does that make you wonder about who's running it? >> yeah. look, we went through similar things when it came to twitter x. i mean, we've gone through other situations as we've talked about. i believe this is something where three, six months from now, i think you'll see him a lot more dialed in to tesla in terms of as we go into fsd, as we go into autonomous. i also think, you know, perception is reality, and i get that. but from all the work that we've done talking to people at tesla, i actually think he is driving a lot of the bigger initiatives at tesla. despite the view that he's basically 110% into doge. and that's where all the time. >> where do you come up with this 5% number? i only ask that in terms of people who might change because, you know, typically, i think it's fair to say his customer has been sort of center left. let's say

they've been environmentally focused republicans, perhaps not as much so, at least in certain parts, and so less likely to buy one. i don't know. you know, the journal today, the story, they cite a lot of people. it's anecdotal, saying i'm going to give it up at the end of the lease. where do you come up with 5%? >> yeah. i mean, for us, a thousand test owners. i mean, it's actually it's less than 5%. >> so you did a survey. >> of 1000. so to me, of a thousand customers lost. and i could also tell you this is something, as i've talked to others at dealerships, whether it's in europe, you know, what we've seen even in china and what i believe we're going to see in the us, i get the brand words. it is a dark time right now for tesla bulls, but to me, it is not the time to head for the hills. this is actually a time to double down. the reason we add to the top picks was i think we look out 612 months now. i think this is ultimately the stock is a double. >> over the next. not on cars though right. is it on optimus? what's it on? >> i think 90% of the value is going to be autonomous and

optimus driven, i continue, i think autonomous itself is worth more value than all of tesla today. and i just think as we've gone through many periods, despite the frustration over the years, that has always been the opportunity. and i just think right now we are going into what could be actually the biggest golden path for musk and tesla, despite right now what feels like very like a white knuckle moment, just bad news after bad news. >> you're right. there have been those moments in the past and the stock has has recovered. dan, we got to keep it a little tight today. it's good to see you. thanks for coming in. dan ives. >> topping the market lift a little bit. getting some new details around tariffs this morning. let's get to megan costello at the white house now what megan. >> hey guys. we just had the chance to talk with the national economic council director. that's kevin hassett was out here talking with reporters. we talked to him about the jobs report and about tariffs. and i asked him specifically about those steel and aluminum tariffs. those are set to take effect on march 12th next week. they have already been signed into law. those, of course, were

a major point of friction with canada and mexico in the first term until those two countries got carve outs. i asked him now if there would be any exemptions for any countries or any industries for those tariffs next week. here's what he said. take a listen. >> he really doesn't like the word exemption. if i walk in and offer an exemption, then i'll probably get kicked out of the office. we'll see how it goes though. maybe there'll be some. i doubt it. >> there, he said. i doubt it to the idea of any exemptions to those steel and aluminum tariffs guys. so i would just flag again this was a big point of contention with canada and mexico and other allies, including the eu. in the first term. it was one of the biggest moves that president trump did on tariffs with allies in the first term. so i would expect a lot of retaliation next week on this front, especially because the countries that are going to be hit here, it's going to be a 25% tariff on all steel imports and 25% on all aluminum imports. so the folks who got carve outs last time, it was mostly allies. that's mostly who will be hit this time around. so expect some retaliation. expect ongoing

considerations here. and just, you know, re-upping this contention, i would say with canada and mexico, right after striking a deal yesterday. guys. >> megan, he was also asked about the impact of d.o.j. and federal workforce cuts on the jobs number and whether that's going to roll into the next couple of prints. what do you say about that? >> he absolutely was. at first, he said that he thought it wasn't showing up in this report, that it would show up in the next couple of months. so i asked him. then i followed up to say, does that mean you expect some weakness in the following reports? and he showed some optimism. he said, yes, we'll see some doge impact on federal hiring. he does think that there will be some manufacturing hiring, especially because of the tariffs that he says will offset that. we'll have to see if that that pans out. >> megan. thank you. megan cassella, obviously, let's let's keep the focus on trade if we can. joining us now is white house senior counsel for trade and manufacturing peter navarro. peter, good to have you this morning. >> david. >> you know, actually let me i'd like to start with april 2nd,

because you've talked a lot about it. we had secretary lutnick on yesterday. we can talk about a lot of other things, but what are your expectations given that date is not far away between now and then, and what will actually happen when it comes to the reciprocal tariffs that you and the rest of the administration have been obviously talking a great deal about? >> i mean, it's a certainty. let's get rid of that uncertainty, that reciprocal tariffs are coming. the notion here is very simple that the rest of the world cheats us. they can have consistently higher tariffs and higher non-tariff barriers. that was something institutionalized many decades ago when the world trade organization, with its most favored nation way of approaching tariffs. and we've been paying those bills all along. i would love just for a minute, though, because what happened with the jobs report, to put all of this in some broader macro context, if i may. what we are in for the markets

is a very healthy transition from bidenomics, which was based on keynesian over stimulus at the fiscal level, accommodated by monetary policy at the fed, irresponsibly coupled with two severe negative supply shocks in the form of higher oil prices and substantially higher regulations. and what that has led us inherit here now is both an inflation that was the worst since the 70s because of the fiscal over stimulus and the supply shocks and a deflationary impulse in these higher rates and higher oil prices. what we're moving to very rapidly is quite the opposite of proven trumponomics based on fiscal responsibility, monetary responsibility, but most importantly, positive supply

shocks. we've already seen the price of oil come down significantly along with gasoline prices. so that's all to the good. the deregulation movement is moving apace. and as you know, david, what we get out of positive supply shocks is that virtuous thing where we get both growth and deflation. so this is the transition that that's moving forward. the tariffs and the fair trade play into that by attracting investment, creating jobs here and driving up real wages. and i think it's important. when you saw the joint address the other night, one of the things that we should shine a bright light on it, sarah was talking about investment and things like that. the president announced that expensing would be retroactive to january 1st. so any restraints on investing over tax uncertainty. so we like where we

are right now. trade policy is an important part of restructuring the global international environment so that we benefit. >> but peter yeah to that extent that you're restructuring the global environment. yes. the uncertainty that comes along with that, the, you know, the back and forth around certain tariffs being in place and not. and then what's coming on april 2nd, don't you think that does have the effect of freezing business to a certain extent. and their capital allocation decisions. and i would even reference treasury secretary benson earlier this morning on squawk box talking about a period of detox. do you agree that that that is a potential outcome, at least near term? >> well, let's think about what's happened since president trump took office. he's had, what, $1 trillion of new investment pledged here by the semiconductor companies, by by apple folks we saw the last time with steel and aluminum tariffs

with steel, we had $15 billion of new investment. so i reject the idea that there's uncertainty. the uncertainty is created by the fact that people don't take president trump at his word. now, with respect to the negotiations that we're having now with canada and mexico, the way the media portrays it is, oh, the president put tariffs on and he takes them off, and we're not certain what's happening. if you just simply parse what's going on. david. it's a negotiation and we're winning. i mean we put the tariffs on. so what happens. the auto companies come to us. and what do they pledge. they say, hey, we are actually going to start moving our supply chains to the to this country much faster than we should have been doing if we had believed you a couple of months ago. they're getting the picture. and then we've gotten more and more cooperation. there was an extraordinary i don't praise the

new york times ever. okay. but yesterday was a rare event. they had their podcast, the daily, on, where they sent a reporter deep into mexico to visit fentanyl labs. and the collusion that report was, hey, the tariffs are working to break the back of fentanyl production in mexico. so these this is a negotiation. and come april 2nd that's all about reciprocity. yes sir. how are you. >> i do i'm good i do think there is some confusion about what the what the point of the tariffs is because, you know, you've been clear. >> point of which, which tariffs are we talking about. the fentanyl drug war. tariffs are the ones coming april 2nd. >> drug war tariffs right. those are fentanyl. but then we've also heard you know talk about tariffs as revenue raisers. we've heard about them as ways to attract investment and manufacturing and jobs into the united states. we've heard about them as ways to level the playing field with our neighbors. we've heard about we've heard about them as ways

to bring tariff barriers and trade barriers down to zero. so i think there's. >> and all of that can all of that can be true at the same time. so let me let me just parse parse that out for you. very clearly, the tariffs that we are imposing now on canada, mexico and china are directly aimed at the fentanyl problem, which is killing has to date over a million people directly and indirectly, and continues to kill super bowl audience size numbers of americans. and that's got to stop. that has got to stop now. that's one box. second box is the reciprocal tariffs. the president has talked about this going back to being on oprah in the 80s when japan was cleaning our clocks about how it's just it's just not fair the way the world treats us. you can't have germany selling us

eight times as many cars as we sell them, because their tariffs are 15 times higher. >> so why not instead negotiate a free trade deal with them where they have to bring tariff rates down to zero, like us? like isn't the way to get no trade barriers and zero tariffs, to do a free trade deal, not to match them at higher tariffs, then we're just copying their bad policy. >> no no no no, we're not copying their bad policy at all. the president's policy is hey, if you want to lower your tariffs and tariff non-tariff barriers, we're there. we're good. you treat us fairly. we're good that that's that's the negotiation right there. we're not going to wait for the world trade organization. we're not going to going to enter into ten year negotiations with these countries. president is saying right here and now, stop this. stop this, because it's costing this country jobs and factories and wealth. and we you run a trade deficit every year of $1

trillion. sarah, if i gave you $1 trillion. >> every year. >> for how much of america would. >> you buy direct investment coming in. we are the best stock performance, stock market performance in the last year. we're outgrowing everybody. so why why mess with what problem are you solving for? if they're all cheating us and ripping us off? >> see, this is look, this is where you got to get to akron. you got to get the youngstown. you got to get the cincinnati area. there's well, you go back there and ask folks in cincinnati what's going on. because because when you talk, when you say that to them, they just going to shake their head. they're going to say, oh, come on, we've heard that for too long. the fact of the matter is, there's too many people in this country who are hurting. i mean, if you just think about what the ravages of nafta and china and the wto and the way trade has devastated our communities, particularly across the rust

belt, but a lot of other places as well. north carolina textile, it's just people aren't buying what wall street is selling anymore. and that's why president trump won in a landslide. i'm glad you mentioned states why he won. >> i'm glad you mentioned states, peter, because then you have rand paul, who i'll quote every almost every industry in kentucky has come to me and said it will hurt our industry and push up prices of homes and cars. he goes, there is such a thing as strategic retreat. well. >> look, ron paul doesn't doesn't love our trade policy. and that would be a gentle way of saying it. what what? i'd love to hear every member of congress acknowledge. and everybody on wall street acknowledge is that the world is cheating us. that's the fundamental reality. that's all we're trying to, to deal with. i mean, come on, the reality is they cheat. david, what. >> does a hey, what is a level

playing field then look like? if we were to make an assumption that we're able to compete globally based on the prowess of us manufacturing, i mean, we still have, obviously, we pay our workers a lot more than they pay in china or any other places in the world. i mean, how competitive will our products truly be? or are we creating really a domestic manufacturing economy for domestic consumption? >> well, see, you have to understand, for example, with china, much of their so-called competitive advantage is artificially done by the government. what? to me, there's one metric that's really important, and i think it's very important as well to the president. that's the trade deficit. it's $1 trillion. now, the way free market economics is supposed to work is countries should not be allowed to run sustainable, chronic trade deficits, particularly of such large sizes. so when you ask me

what what fairness looks like, i would say a world in which we balance our budget, we balance our trade deficit. if we did that, the trade deficit, one of the epiphanies, david, is if you just calculate how the real gdp quarterly number is calculated, it's consumption plus investment plus government spending, which tend to be positive. but at the end then you have to subtract net exports, which is to say a trade deficit probably shaves 1 to 1.5% of real gdp growth off every year. that's the difference between a four and a two and a half. >> but a lot of. >> people think that that's. >> what happens. a lot of people think the trade deficit is a reflection of the fact that we have the strongest, best consumers in the world, and we have appetite for foreign goods because, you know, us consumers are in good shape and psychologically they are wired to spend. and people are jealous in europe. they're jealous of

that. in china, they have a savings problem where they need to see more consumption. so doesn't a trade deficit just reflect the fact that we import a lot of stuff from everybody because we have great consumers? >> so if i told you that you take a $50,000 bmw and a $50,000 cadillac and you export the bmw to the united states, and they sell it here for the low 40s, and you take that cadillac and you send it to germany with its much higher tariffs, vat and trade barriers, and they sell it in the mid 60s. have i not explained to you exactly why it's about unfairness rather than oh yeah. >> that too. i get that too peter i. >> can. >> but at the same time. >> every country. yeah every country. i can give you an. >> example of china. then let's do china then, because they've got a enormous ev industry there. and you could imagine a scenario in which there were no barriers whatsoever if we allowed them to sell their evs

into our country. byd i mean, you could make, you know, a $20,000, $25,000 automobile available conceivably to a us consumer. i can't see how that wouldn't take significant market share versus what gm or ford would be able to do in their market. well. >> let's let's ask how they do it. let's let's start with the sweatshop labor. then let's go to the pollution havens where they don't have any regulations, speak of the places is a cesspool. the rivers and their air basins are a cesspool. they probably stole a lot of that technology from tesla and other. >> countries. >> which we are able to monetize. and then you've got massive government subsidies. they keep our our evs out of their market. and there's just and then, of course, if you go back to the lithium batteries and how they do that, they use their debt diplomacy to control lithium supplies. and so they

create these national champions to crush us. and they're crushing the world. their model, their model is to build substantial overcapacity in just about everything copper, steel, aluminum cars, dump it on world markets and then take over the industry with wall street saying, well, consumers are better off here because china can sell it cheaper. that doesn't work. it's an unsustainable equilibrium. and that's why president donald john trump has been the only president to say that doesn't work. and we're doing something about it. so this is where where we're at. all we want is fairness. all we want is fairness. we're not getting that if we get fairness. and by the way, i mean, for folks watching this bullish bullish bullish bullish i'm usually kind of a sector rotation guy. you know i was a contributor for ten years on your on your show i love

being there i know all of you well and i love all of you. and but for the for the trump administration would be the one place where i'd be like, want a passive investor and want to see that market go up. but also there's got to be brother cramer's got to do like a mega portfolio and see ahead. so see the companies that are going to do well when trade is more fair. whether it was century aluminum or us steel or nucor or whether it's when we get apple coming here, whatever, they see the chessboard here, but it's bullish and we're making this transition from biden nomics, which is inflationary stagflationary to a sustainable price stability, real growth, rising real wages like we had. and we proved this for three years during the trump administration. >> peter, even if you agree wh all of what you just said, i wonder whether i don't know whether you consider the journal

friend or foe. but this op ed today. >> yeah. >> so let's be careful. >> they called me out again yesterday and they don't like editorials. >> their argument is it's doubtful the president even has. >> i'm a nice guy, paul. >> someone should sue. someone should sue. what do you make of it? >> look, the wall street journal is the wall street journal, not the main street journal. how many times do i have to say that? and paul zhu runs that editorial page like an iron fist. it bothers the reporters on the print side who who like the want to be portrayed as fair. and they're just, look, they had two lead editorials in the first term that were titled the navarro recession, based on their trashing of our trade policy, and all we got was price stability and, and growth. and so that's the difference here. hear me on this, america. hear me on this cnbc. >> all right.

>> all his rhetoric about inflation and the sky's falling. they said the same things in the first term. and it didn't happen. that's the difference here. we've got data on our side. >> really quickly peter. so let's end where we started april 2nd. we trade with over 200 countries. i imagine there are millions of tariffs out there. what what can we expect? what kind of size of new rules and tariff rates, reciprocal tariffs are we going to get. that seems like a lot of work. and it's really complicated, especially if you guys are counting things like sales taxes and vat taxes. >> okay, i love that question sarah. it's a great question. and this is not going to be like a free trade deal like the usmca where you have 4000 different tax codes with different tariffs. the concept here is one number, one number that reflects in the aggregate the unfairness embedded in the higher tariffs and non-tariff barriers that

countries impose on us. and that's the one number that the tariffs will be for each country that will help us erase that unfairness. and you'll see this on two fronts. you'll see it at the industry level. that's howard lutnick, secretary of commerce will be leading that with the 230 twos on things like autos. and then jamison greer. but bob lighthizer is old lieutenant who is just coming into his own. and really, i'm just so impressed with the man he's going to be dealing with the 301 country specific investigations. and between the two of those, president donald john trump is going to level the playing field for american workers and american companies. and it's bullish. >> peter, always appreciate it. the president apparently now speaking at 11. any idea what he's going to be talking about. >> you know i survived four years in the trump

administration because i never got ahead of the president. got it. not going to do it today. but it's really great to talk to the three of you. and it's always a pleasure. >> all right. thank you, peter navarro. >> take care. >> you too. >> i mean, it is always a good exercise to go back and forth, to really get into the psyche of how they're thinking about tariffs, why they're doing it, what the process looks like. because i think it can be a lot of whiplash for investors and trying and ceos and trying to understand why. >> when i'm still trying to understand the ultimate goal, which i understand you want to improve the livelihood of american workers, and you may well do that, but it's not clear to me that that's going to result in anything except a more expensive world overall, and not necessarily one where we're going to be more competitive globally. >> also, peter's right. there have been investment announcements, but it's not like we've heard car companies make plans to reshore or bring production back. yet it has not happened. >> on the honda civic in indiana. maybe. maybe that's.

>> yeah, the japanese. >> yes. japanese. yeah. >> yeah. but instead of mexico. so that's the kind of stuff they want. but can it happen in a large scale. can we make t shirts here i don't. >> know, no. we'll never make t shirts here. >> all right. after a break, goldman sachs take on these tariff headlines. and this morning's weaker than expected jobs report. chief economist jan hatzius is with us on this jobs friday. we're back in a moment. >> the number of public companies is shrinking. while the number of private companies is increasing. at franklin templeton, we're expanding access to the growing opportunity in private markets, offering the potential for greater diversification and enhanced returns through our world class specialist investment managers, we are empowering advisors with solutions to build the portfolios of the future today. portfolios of the future today. alternatives by franklin (♪♪) the booking app i used didn't have agentforce. so an ai agent didn't know to move my reservations inside... ...or know what i like to eat, which is not that. what's up, my brother?

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tariff differentials, plus other things like sales tax and vat differentials. if it's just the tariff differentials, the impact isn't going to be that large. we estimate only about 1 to 2 percentage points in terms of the average us tariff rate. but of course, many foreign countries, europe in particular, have much higher sales tax rates and vat. if you if you view that as a tariff equivalent, then you're going to get a much bigger impact. >> now they do don't they. >> they do. >> well they. yes. so if it's if it's really one for one, if they haven't been totally clear about the formula, if it's really one for one, then you take one percentage point of vat as you know one percentage point tariff equivalent. then then we're talking a much bigger increase, more like ten percentage points or so. i think in the end, you know, we'll see. of course there are announcements, there are threats. and then there's the ultimate number at which they they land, which may be somewhere more in the middle.

>> do you buy their economic argument that all of this is going to lead to more investment, manufacturing and jobs in places like akron, which i know very well because of what they're doing on trade. do you buy that? is it going to work? >> i mean, over the longer term, you know, i think it can certainly have some effects. i tend to focus on the more near-term impact, and the more near-term impact is that if you put, you know, if you increase tariffs, there is going to be some impact on prices. the pce price level, by our estimates, rises by about ten basis points for each one percentage point in the average tariff rate. and then there are some some growth effects as well. so in the near term it's going to have, you know, lower growth, higher inflation impact. >> what what type of growth head are we talking about or is it just too uncertain to tell from this point? >> again, it depends on how much you end up doing. if, for example, you had a ten percentage point increase in the

average tariff rate across all us trading partners, i mean, our estimate is that's about 100 basis points on core pce on the price side and then on growth, you know, somewhere between half a point and one point. it that really does depend a lot on maybe more psychological factors like the uncertainty that's being created, how much of an impact that has on business investment, in addition to the sort of fiscal tightening effect of this, there's also the question of what happens with the tariff revenue. you get additional revenue. that's, of course, a fiscal tightening, negative near-term growth effect. but then if you recycle that additional revenue into tax cuts, then you blunt that impact. so i'd say on prices, we have estimates that are probably more reliable than, than on the growth side. but it's not going to help growth. >> that you haven't made any changes really to your your at least your q1 tracker. right.

>> q1 tracker is 1.6%. you've been pretty steady. we took it down after last week's data or the week before, rather, but not by as much as some of the other trackers like the atlanta fed's gdp now, which we think is shows an exaggerated amount of weakness because a lot of the big increase in imports was gold, which isn't going to show up in the gdp numbers. >> right. is the jobs number reflecting any of this government efficiency push yet? >> well, there was a 10,000 decline in federal employment. so with the exception of that, which is a relatively small contributor. i don't think so. and i think more broadly, the jobs report was, you know, a touch weaker across a range of different components. but overall, i don't think there was really much that we learned here. >> is household too volatile to really watch? >> i think so, yeah. i think the household survey is too volatile. i mean the household survey was a bit weaker. the

unemployment rate was a bit higher, u6 rose, so i'm not saying it was a strong survey, but i certainly wouldn't take the month to month change in household employment as a reliable indicator. and then on the payroll side again, a touch weaker but not dramatically. >> we mentioned workweek earlier. how explain to viewers how that mental calculus works. if you are trimming work hours, is that a precursor to cutting or is it a cushion to where you might eventually be able to add hours back? >> well. >> it could be either of those two things. i think statistically, if you just look over many cycles, you would say the workweek often moves a little bit ahead of the actual employment numbers, so it can be a bit more of a leading indicator. again, the moves that we've been seeing are not large enough for me to say that this is the precursor to anything. there are some real risks to the economy which we've been discussing. they're mostly policy related. i don't think there is much in the current,

you know, labor market picture that would make me make me worried. there was maybe a hint of worry in the jobless claims numbers a week ago, but it came back down and, you know, it turned out to be if it was an alarm at all, at least a false. >> getting questions from clients about stagflation. >> i mean, sometimes and rising. i don't know how a stagflation is defined exactly, but if you have. higher inflation. well, if you directionally if you have higher inflation and lower growth, then it's a stagflationary direction. but i don't i wouldn't call it stagflation. the economy is still growing at, you know, close to 2% and inflation, while above 2%, you know, is not that far above 2%. now, could you tell a story where, you know, things continue in that direction? you could, but i wouldn't at this point. >> one more question, which is, you know, we are seeing signs of weakness pop up. you know, in

certain economic spots. we see it in the bond market being reflected. and i think it's presumed that tariffs are the main risk right now. right. and we're we're moving around on those headlines. but what about monetary policy i mean could some of the underlying weakness that's showing up now have to do with the fact that we are still at high interest rates and they are restricting the economy? i mean, housing has been a particular mess lately. >> i think. look, the funds rate is still above most people's estimates of neutral. so all else equal, of course, if you were 75 basis points or 100 basis points lower, that would provide a boost. and you know, one thing i would say, though, until the recent weakness in the equity market, if anything, financial conditions were significantly easier than, than than, you know, a neutral reading. and i tend to look more at the level of financial conditions. that's obviously changed to some degree. we've seen some tightening in financial conditions, but we're definitely not in an environment

where financial conditions overall are tight at this point. so i don't think that there is a strong signal from what you're seeing in the interest rate environment and in the in the financial conditions environment that the fed needs to bring the funds rate down soon. so i don't expect them to do anything very soon. >> okay. john, thank you very much for joining us. all right. thank you. on a more lively jobs day than normal with all this tariff news. >> thank you. we are watching this report from punchbowl talking about potentially no capital gains tax tax exemptions expected at this crypto summit that the white house is hosting today. we'll talk about that as we took a brief trip here below 5700, which will take you back to september. stay with us. >> the jobs report coverage is sponsored by jobsohio. let's grow together. >> you have one goal. find the perfect place for your company

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street. hpe hewlett packard enterprise slumping double digits after disappointing guidance. their ceo antonio neri will be with us to break down the numbers. ten minutes on money movers as well as some job cut announcements. also next hour, president trump now set to make remarks at 11 a.m. from the oval office. we will take you there live. eamon eamon javers our reporter, saying it could be about jobs, which would make sense. and what we just heard probably from peter navarro. what we'll hear is that they're inheriting from the biden economy, an economy that was sort of drunk and infused with stimulus from federal spending, similar to what we heard from treasury secretary bessent as well, and that now we are going into a period where it's about the private sector and not as much government. that seems to be sort of like the new narrative on the economy. >> sure. yeah. this detox period that we're in, >> detox. >> there we go. our serious addiction. >> we spent a lot of time with navarro. i'm sorry we didn't get to robots. >> oh, yeah. you're really into the robots. >> i'm totally into the robots.

and obviously, secretary lutnick yesterday talking about the five plus million jobs that could be created from robots. >> someone has to operate the robots and build the robot factories. >> the robots are going to build the robots. >> meantime, the jobs report does see some declines in the federal government workforce as part of these larger fiscal cuts, a move our next guest had warned about last month would lead to a round of uncertainty and instability. he also leads one of the nation's largest civil rights groups as it pushes back against anti di efforts across corporate and government agencies. joining us this morning, marc morial, national urban league ceo and the former mayor of new orleans. marc, it's good to see you again. thanks for being with us. do you think we are just getting started and realizing the effect this is going to have on the labor market? >> i think this jobs report hasn't factored in federal job cuts, which are significant and substantial. the potential impact of tariffs in creating uncertainty in corporate america, pull backs on hiring,

pull backs on investing, and also the impact that the deportations may have on the labor market. we're getting to the harvest season in the agricultural sector. will they have the workers that they need in order to harvest the crops that americans need on their kitchen tables? so this jobs report is more of a continuation of the very strong, stable economy we've had over the last few years. declining inflation, good job creation, declining unemployment and stable growth. and now i think what we have is volatility, uncertainty and really great concerns that we're facing a slowdown i hope not, but potentially a recession. >> right now the federal workforce as a percentage of the population isn't huge. i wonder i mean, there have been some questions as to whether or not we could start to see negative prints on jobs. how would that happen if it were to happen? >> so i think the important

thing is the federal workforce, those workers, when they are now laid off, they spend money on housing, they spend money on food, on clothing. they're part of the consumer economy. so you've got to measure the impact of those employees now not being vital to the consumer economy. so you've got to do an accelerated impact. and we don't know. now, we also don't know because the cuts have been indiscriminate. they've been under sort of the rhetoric of waste, fraud and abuse with no real definition and no real evidence of what that means, how it will impact the delivery of services. i think veterans and veterans at veterans hospitals, if you take away half the employees, think about the irs and people's ability to get their refund checks on time, or get someone to respond to a concern or a problem they may have. we have no idea how these cuts are going to impact the provision of government service, because they've been indiscriminate, i think a bit ham handed and not strategic in

how they've been carried out. >> then there's the question of medicaid. this week, the new york times put on the front page a big map of what parts of the country would be most impacted if, in fact, they've got to start cutting into that muscle. how much do you think about that or worry about that right now? >> karl, let me tell you something. you know, you've got to be concerned. anyone who's had an elderly parent, an elderly friend, someone in their family who relies on health care, who struggle to pay for that health care, for whom medicaid may help them in a nursing home. there's a compassion element here. it is about the economy, but it's also about human decency and human needs. why take away health care from sick americans, from needy americans, from children? to what end? to what end? it just is not what i think the american people want. and i don't think it's consistent with american values, quite candidly. >> i mean, do you your the

purpose of national urban league is on equality. right. and i and i'm curious what you make of some of the president's other orders. you know he's really he's attacked this this die maybe pendulum swing in a pretty heavy way. and i'm curious how you and your members are reacting to it and whether you're fighting back. >> we are fighting back. we've litigated against it. but importantly, sarah, a majority of the american people support the notion of equal opportunity. that's what diversity, equity, inclusion is really all about. there's no evidence whatsoever that these efforts to create equal opportunity for those who have historically been locked out, have caused discrimination against other americans. it's a farce. it's a story, it's a smokescreen, and it's a smear campaign. what we are for is everyone who has merit, having an opportunity for the job, for the promotion, for the seat, at the table, for the board seat, to build a business and to own a

home. and that's a fundamental american value. and i think it's been a smear campaign, a smokescreen. >> we went a little far at corporations, didn't it, with quotas on hiring. >> there's no quotas. quotas have been illegal for years. >> no, but but companies have put in place, for instance, incentives and targets that now they've rolled back. measuring who you hire is not a quota. business measures everything earnings, prices, inventory they measure everything. why can't they measure the number of women, men, blacks, latinos? why can't they measure the number of 30 versus 40 versus 50 year olds they hire? it is fundamental to american business to measure and to suggest that you can't measure. who you hire. to me, is an infringement on the right of american business to run their businesses as they see fit. it's a form of overregulation. >> yeah. what's notable to the companies that have rejected some of those proposals? costco

and deere and. >> delta airlines and a number of others have said, look, let me run my business and let me, let me run my business the way i know how to run my business. don't put your fingers in my hiring practices. of course, hold me accountable to not discriminate. but don't tell me how to run my hiring practices. >> marc. thank you, marc morial. >> thank you. >> s&p and nasdaq both down looking for obviously a negative week. we got a lot more market coverage for you straight ahead on money movers. >> trend tracker is sponsored by cme group. the cme group where risk meets opportunity. >> a us bank. when we say we're in it with you, we mean it not just for the good stuff, the grand openings and the celebrations, but for all the hard work it took to get there.

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