jpmorgan andtz of michelle girard are with us to break down the market reaction, but also the fed reaction. thank you for joining us. david, what did you make of today's action, what did the number mean for the market? was in lineeport with what we are looking for to keep a september rate hike on the table. we got the unemployment rate lower. this was a good, but not great report. at the bottom line, september looks like it is in the cards. it wasn't a sure thing, but it is not a bad thing. alix: what would the fed needed to see to not hike in september? >> to find that the economy has slowed materially. i'm not sure that there will be enough evidence on the u.s. data front that would steer them off course. the more likely scenario would be tighter financial conditions, so you have a situation where some global development, maybe in china, greece reasserts itself, something developed between now and mid september that leads to tighter financial conditions. that is the scenario that i think has the more likely possibility. i do not think that it will. but we will probably be looking out for

matt: joining us for insight on what to watch for is michelle girard, a chief u.s.conomist at rbs securities. it is interesting, economist are pretty set on it happening in september. only investors seem to be flip-flopping, from the looks of futures. one people expect a september increase? michelle: people were talking about it this morning and it certainly again the rum mosttors that we talked to of them seemed to think that the fed would go in september. if you talk to the clients overseas, they have a broader perspective and are perhaps living in a different environment where they are more worried about deflation. overseas investors are a bit more skeptical. right, mostyou are in a stick investors are still on track for the fed hiking in september. betty: morgan stanley came out with a report either today or yesterday where they said that if they decided to raise rates you would see the two year yield go to a level that we hadn't seen since four years ago. why? it's the most telegraphed interest-rate increase ever. why would he see this disruption? i'm not- mich