thanks so much for watching. and remember -- you can't take it with you. ♪ bartiromo's "wall street" begin right now. maria: happy weekend, everybody. welcome to the program that analyzes the week that was and helps position you for the week ahead. my exclusive interview with the krerk o of walmart. and bank of america's ceo. a weaker than expected jobs report in the month of may with the you be employment rate holding steady at 3.6%. economists were expecting 185,000 jobs.

manufacturers added 22,000 jobs in may. to my panel for reaction we have mike murphy. and stephanie, you have been cautious on earnings. it wasn't a surprise to you to see the numbers coming in weaker than expected, waits. >> obviously employment is only as good as profit growth. we are in a process recession accord together government data reported last week. the fourth square and first quarter her negative. so we are clearly in a process recession. i think what we have seen is pricing power has been incredibly low for most of corporations.

and they had this situation where prices have been going up faster than the ability to possible them on to consumers for almost two full years. so we are starting to see that impact profit and a lag employment. i anticipate the trend will continue. i don't know that we'll see numbers like we you a today. but we'll see satined deceleration in employment and wage growth or the course of the year. maria: you think things are slowing. the news was weaker than expected but friday the markets rally. is that because they are expecting because things are slowing down the federal reserve is going to lower interest rates? >> i think that's exactly what's happening now. i don't love that place. i would love to be in a position where strong numbers people markets rally. but that's not what we are getting. we were banging on four interest

rate hikes this year six month ago. now we are counting on three interest rate cuts. anyone watching at home, i would say -- it's not a good idea to try to move your portfolio around based on the headlines because they are changing quickly. maria: you saw global pmis fall below 50. does that tell you things are slowing in this economy. >> you can't dispute the data. things are slowing globally and they have for some time. the argument was the united states is the best place to be versus the rest of the world. maria: is it because of the tariffs and trade worries? >> it could be. that could have something to do with it. the markets are looking past the trade wars. and with the expectation there will be some sort of a deal at some point, both u.s. and china and u.s. and mexico.

things have slowed down. but now if things are slowing in the u.s., things are slowing. if the fed is going to be there to support the market to keep rates lower and boost the economy so to speak, then that's a good thing and can support higher prices. maria: what do you do as an investor. what do you recommend clients do with your call that stocks will trade lower and the economy will slow down later this year? >> i have been pushing the -- the pedestrian assets of gold. i think we still have this huge inventory liquidation cycle that will compress growth and inflation. i think that will drive treasury

yields down substantially farther still. so i would be sticking with that trade. i think it's bearish for the dollar and bull for gold. i would be careful about the corporate credit market for sure. >> respectfully i would be on the other side where the u.s. markets are resilient. we are still in a good place for the economy. there are so many companies coming to the market will people will be able to partake in the growth of these companies because they are public so the regular investor on main street can invest in these. i think the market will be choppy. but i expect to close out the year higher than where we are. maria: any ideas in the unicorn space? >> in consumer tech, the way you go out and get a product has changed so many the way it gets

delivered to you and the way you find that product. there are some companies like casper mattresses. it used to be you would lay down on a dirty mattress in the store. now, you take out your phone and it's delivered in a couple hours. the ipo is coming later this year where the general public will be able to invest in that country. maria: you have done so well in those unicorns. the ceo of walmart is next. >> announcer: trade tension are at an all-time high. how will the trade tariffs impact your wallet? experience the style, craftsmanship and technology

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maria: welcome back. with trade battles being fought on various fronts, the ceo of walmart, doug mcmillon has a front-row seat on how tariffs are affecting retailers. i asked how tariffs are affecting walmart. and whether we'll see higher prices. >> it's important to us. here in the u.s., about 2/3 of the products we sell are made in the u.s.a. and our merchants for a long time have been working on mitigation plans in what's happening with the conversations in china and as of late the conversation around mexico. we hope these relationships -- these negotiations get resolved on both sides whether it's here in the u.s. or mexico or china.

in mexico in particular a lot of our fresh fruits and vegetables, things like tomatoes and avocados come across from mexico. maria: the grocery portion of the business has been growing and a key focus for you as well. are you expecting to see prices go up as a result of this uncertainty in mexico for some of those grocery items? >> that's the last thing we want to see. we hope these things get resolved sooner than later. everything we are doing to try to manage our costs on the mix of merchandise we've sell is to lower prices for customers, which over the past few years we have been doing quite a bit of. maria: have you changed the mix in products coming from china as a result of this over the last year? you say 2/3 of the products are made in the united states. what was that a year ago? >> the number has gone up some

because of the mix of product we sell and we had an initiative to have scene incremental $250 billion of u.s. sourcing happen. we have been doing everything over the years, those efforts have borne some fruit. the customers will buy what they want to buy. our job is to make sure we have it in stock and have it at the best price. maria: i know recently you were in shanghai and you made knew saying you plan to have 40 sam's club stores in the country. have you seen any difference in terms of the approach to walmart as a result of this fight with the united states? china seems to be retaliating in various way, not just tariffs, but also talking about fed he can. bullying fed he can. it says the u.s. is doing that

to its customers and businesses. what can you tell us as a business on the ground in china. >> we have been in china since 19d since 1996 when we opened or first store. we have a number of different formats. we have supercenters and we have been testing some supermarkets. we have a pretty big retail business on the ground. and some partnerships and delivery relationships. so we are continuing to grow. it's an exciting time. i have been doing this almost 30 years now. i have necessity seen so much change. this digital transformation is enabling us to save customers more and more time. we are learning how to digitize our stores, doing egg we can to

take out friction so our customers and sam's club members have the best experience they can. it's really fun. we have dreamt about solving some of these problems and we are alreadying with today's telling we can take on some thing in the past we couldn't solve. maria: you have got two straight quarters of expansion. i want to talk about tariffs and trade. and i want to get your take on the consumer. we are seeing mixed stories within the retail segment. >> i would say the consumer environment is pretty consistent. it's helpful to have low unemployment. gas prices are a manageable range. we are focused on serving everybody. walmart in the u.s. serves all income levels. but we are also focused on opening price points and making

sure customers living paycheck to paycheck can find the best values shopping at walmart. we are working to make sure that value is there. maria: to give the consumers and viewers a sense of what these tariffs mean. let's take a product like a kid's bike manufactured in china or vietnam. we just had the ceo of electric bikes. he moved his production from china to vietnam. what is the price increase one might expect for a kid's bike? >> you though, bikes are an interesting category. we have been working to manufacture some bikes here in the u.s. they moved out of the u.s. many years ago. we have been working to bring them back. but most of of the bicycles do come from china. it's a category worth talking about. we have a children's bike that retails for under $70.

with the tariffs you are talking about. we try to make sure that bike stays under $100 if there is any way possible. but if we manage the mission of other categories, we have levers we can pull to mitigate the impact of a price increase on a bicycle. maria: my thanks to walmart ceo doug mcmillon. geico makes it easy to get help when you need it.

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maria: the international monetary fund is raising its outlook for u.s. growth 2.6%. do business leaders agree? i had a chance to sit down with the ceo of bank of america, brian moynihan, to get his take on tariffs, and the federal reserve cutting interest rates this year. >> when you think about the u.s. economy, it's 2/3 consumers. it's basically called china's economy. i focus on what consumers are doing. in bank of america so far this year we had a trillion in payments made by consumers, ach,

wires. that is up 5% plus from last year. 17-18 it was 8.5. it's very strong and picked up during the year a little bit. we feel good about the consumer. our business clients are borrowing money. they are worried about all the things we are worried about in this room, the ebbs and flows. they are worried about getting employees. but overall they are making money and borrowing money. they are putting the money to work. they stored a lot of cash which means they have more money to invest. it will take away some of the potential problems. bar require' interesting you see an economy that's still strong despite the uncertainty around trade and tariffs.

cap x numbers are something we look at closely. while cap x was up 20%. now it's up 3%. are you seeing uncertainty set in corporate america around the uncertainty around trade and tariffs. >> last year you saw twice the rate this year. but it's slowing down because there was a rush to get things done. you have to think about late 17, nobody believed tax reform could get done. there had been a plan in place for the entire administration, the two administrations of obama it never got through the gang of six or whatever they call themselves. then it happened. the enthusiasm took off and people spent the money. you only need to buy so much. there is a slowdown on the other side and that's what we are

feeling. it's consistent with a healthy economy. it's 2 percentish versus 3 percent. the economy was predicted to slow down. that's what everybody said early 18 about '19. it was going to slow down. the question is will it slow down and keep going. maria: we are in year 10 of an economic spanning, about to break a record of the longest economic spanning. >> by definition we have to break it now. maria: people are saying maybe it's just the age of this expansion that could turn it around. but it sounds like you are not seeing all that much change even though things have come in a bit. you are not seeing that much change from the consumer or business as a result of this uncertainty. >> access to credit is good.

unemployment at levels that are unprecedented. 50, 60 years. when we think about the stuff going on in so it. when is the last time unemployment claims were this number? 199. you think about from 1968, think about what happened. nixon. vietnam was raging. kent state. bobby kennedy. think about all that that went on. then ultimately an oil shock more than a shock. you think about all that. yet here we are on the other side. how many people employed in united states of america 70 million. how many people employed today? 150 million.

technology was going to take away our jobs if you were around in '68. i think people get too worried about that stuff when you think about it long term. it's a powerful engine we have, this economy. 10 years in, it has to flow. why does it have to? that will be the interesting debate every quarter. maria: the final question. your gut. will the fed cut rates this year? what does your gut tell you? >> i don't think they will. unless something goes wrong in the trade. i think the economy is stronger than people think. that's personal belief. unless something goes really wrong. this economy will move along. they are raising rates at this growth rate. maria: my thanks to bank america

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maria: coming up next week on the program. larry silver stein is my special guest. plus this weekend on "sunday morning futures." join me at 10:00 a.m. eastern live. i will be joined by carter page. former trump advisor. mark meadows and the chief security officer of huawei. a lot of questions about watchway. we will hear what the company has to say by the.

plus start smart, tune in week days on fox business from 6:00 to 9:00 a.m. on "mornings with maria" on fox business. that will do it for us right now. thanks for joining me. have a great rest of the weekend. i will see you next time. >> welcome to the "wall street journal" at large. big tech in the crosshairs. are some of the largest companies too big for our good. the "wall street journal" was the first to report the justice department was to begin investigating google or possible violations of its power as a big technology company. and the federal trade commission is looking at an