thanks for inviting me on. >> steve liesman, we have to wrap it up with these guys as well. steve, very quickly, i want to ask, y you still out there? >> yes, i am. >> your comment, i want you to answer your own question. . should the fed be concerned about this? it's a lot of money. nobody's suggesting they can't handle it. it's their own money. the shareholders should be ticked off. should the fed care. >> i'm almost certain the fed will investigate this. it's going to look at what the positions are. and i think this raises political pressure on the fed to toughen up the volcker rule. and i think the fed is going to care an awful lot about this. there's a big position that has a lot of weight. i think the fed's going to want to know why this went bad. was this an issue it wasn't looking at it? one thing i want to tell you, senator levin on a conference call was asked if he had advice for jamie dimon, he said if you want to be a hedge fund manager, be a hedge fund manager, terminate your access to the window and stop garned financial deposits. >> steve liesman, thank you ver

steve liesman standing by at headquarters. yesterday, steve, a lot of second and third guessing. if it was a bad enough number, the fed might want to step in and the market might even like that. >> it's not bad enough to bring in the fed. it's still consistent with 2.5% growth economy but certainly not good enough to provide the growth to offset what we're seeing weakness and income in the economy. i think it was interesting to watch the market earlier in the morning which didn't react too much and the thinking was that they were banking on a number in the 120s indeed the forecast did not fall. what you're seeing is expressing that for hire number. >> and heaviest number of the week, it was a risk selloff today. >> i think things would be more brighter. we're 4% off the highs. would anybody come in here? i think the answer would be yes if there was less uncertainty here and in the united states. i see the lowest levels i've seen oil. oil is down 20% this week. those are your two indicators that markets are telling you that's what they are worried about. >> demand goes lower. of c

steve liesman is back at headquarters wishing he were fishing. i'm sorry. i had to give it away there, steve. bertha, a bounce, i guess. we'll see if this will last. we're losing steam in the final hour. >> this morning i was saying on the seventh day we took a rest. the bears took a little bit of a rest it seems today and decided things were oversold. but what's interesting is that the theme today for me has been cognizant dissadence. the third act of the greek drama is going to end with greek -- greece leaving the euro. we've never seen what that would look like. we don't know how you would do that in an organized way and certainly given the chaos that we're seeing, there are no bets that it could be done in an organized way. what's interesting today is that you're seeing the banks after spain goes in and partially nationalizes and here they are rising as well. spain also has to recapitalize those banks and where are they going to get the money for that? the feeling is that europe continues to be europe and the stakes even higher. but at the moment we're k

coming up next, steve liesman coming back with an exclusive report on how both parties in washington are trying to make the numbers gl back. tweet us with your response of the day. are you buying on this selloff. tweet your answers to @cnbcclosingbell. you're watching the "closing bell," first in business worldwide. tdd# 1-800-345-2550 you and your money deserve. tdd# 1-800-345-2550 at charles schwab, that means taking a close look at you tdd# 1-800-345-2550 as well as your portfolio. tdd# 1-800-345-2550 we ask the right questions, tdd# 1-800-345-2550 then we actually listen to the answers tdd# 1-800-345-2550 before giving you practical ideas you can act on. tdd# 1-800-345-2550 so talk to chuck online, on the phone, tdd# 1-800-345-2550 or come in and pull up a chair. [ crunches ] mmm. ♪ [ male announcer ] pringles... bursting with more flavor. [ crunch! ] >>> hi, welcome back. how slow is the slow economy? the reaction from the report wasn't just felt on wall street. washington had its own reaction and now steve is spinning that. >> we're going to spin the jobs number, show you how t

let's go back to steve liesman on the breaking news of the hour. ee to which the imf might bailout spain and what america would make of that. steve. >> those are two good questions, simon. what we're told is the imf essentially is playing down a news story that ran -- that there was discussion of a rescue for spain from the imf. we were told again these are parts of a normal contingency planning happening within the euro area department. the big distinction made to me this is separate from discussions with spain. when the imf would go about beginning discussions of a rescue plan, it is something that will happen with spain. we know there are meetings planned today. i many, f director christine lagarde meeting with imf president of spain. tim geithner will meet with the same vice president. i think that's part of why the market was excited about this. there is a big pot of imf money, but the spokesperson saying it's not unusual for the department to look at these different scenarios out there. while this money may be used, it's very early days for us

and atlanta fed president dennis lockhart, both taking part in a panel moderated by steve liesman in california. also pfizer reporting results before the opening bell as do archer dan yae er daer daniels. after the close, cbs. >> and some u.s. energy related and biotech companies are apparently among the most heavily shorted ahead of their publication of results from this week. joining us for more, will, good to see you. you don't necessarily analyze the results but ship holdings reporting earnings, what does that tell us about how many people they're short something. >> a staggering inin ining 40% borrowed. it's expensive to be shorting that much. there are two themes there. commodity group slowing down. one due for a major fall. it could get taken over, is there any consolidation. short selling a also fraught for danger. but you at the moment -- >> at risk of a huge squeeze. >> if there was spectacular results tonight, you might see momentum to the upward side, buts's a high conviction view. >> they won't see any particular pick up at up a in shipping trade and, therefore, there's

not exclusively an american game anymore. >> thank you very much, steve liesman. say the average facebook worker that includes the rank and file, will be $2 million wealthier once the stock hits the market. what are they doing with all that money? jane wells is back with us live. jane. >> carl, you know the california housing debacle hasn't really hit this neighborhood very much. down the road university avenue one of the priciest zip codes in the country. so will all these new millionaires boost prices even more? maybe a little. miles mccormick is a veteran realtor in palo alto with facebook employees as clients. back in the days banks took restricted stock options as collateral for mortgages in silicon valley. those days are gone. the linkedin ipo last year did not boost home prices as much as in expected, so he's cautious about the facebook ipo. >> what i found about facebook is there's a culture with that group that's unlike anything i've ever seen. >> it's a culture he says comes from the ceo whose tastes are very modest. >> they're very in tuned with less is

. >> moderated by steve liesman. >> moderated by steve liesman. and dennis lockhart. the whole discussion was about exiting qe. one, do we need more qe? two, can we exit qe before the inflation problem takes off? it was a rather lively debate. >> what was the conclusion? >> there was a di vvergence of opinions on the panel. >> there's a divergence of opinions on the fed board. >> yes, there are. you have some like charlie evans who believes that a 3% rate of inflation should be tolerated. dennis lockhart things 2% is too much. personally i believe that the fed should stop thinking about inflation as the con kwens of monetary policy and view it as a policy tool. because the only way the united states is ever going to adjust its debt to gdp ratio is to allow there to be a slow gradual inflation. and because they don't recognize it as a tool, it's likely to get out of control. because they're not managing it. >> low rates forever has not worked in japan. >> it hasn't. >> japan is not a model of growth. >> right. >> it also doesn't have much of an inflation problem. >> ri

steve liesman, as promised back with us. and he had a big exclusive interview. t some insight, steve, into what the fed is thinking. >> yeah. into both the politics and policy. what you'll hear when you hear this next section with our interview with bill dudley, the cost of additional policy measures as well as some of the politics of it. >> well, i think there's two sort of sets of cost. to extent we expand our balance sheet or we sell short data treasury securities and buy long data treasury securities. we have more risk in terms of our portfolio -- interest rate risk in terms of our portfolio. the second issue of course is if we expand our balance sheet, we can create anxiety among some people that this might actually sew the seeds for future inflation. i don't think expansion of the balance sheet in any way compromises the fed's ability to keep inflation in-check over the longer term. doesn't matter what i think. if people in the market think expansion of the balance sheet could cause future inflation, we have to take those expectations into consideration as

steve liesman is out at a conference in los angeles. he spoke with two fed presidents. stimulus and growth with high on the agenda. >> i think there's only so much we can do to stimulate loan demand and to change the risk appetite of the financial system or banks. so i'm not sure at this moment that more stimulus would -- at least more really active stimulus in the form of quantitative easing, for example, would have that big an effect. >> i think the table is still set for about 2.5% to maybe 3% growth over the next 18 months. unfortunately, i just think that's a little disappointing at this point in the recovery. i think we ought to be doing better. >> despite that chicago fed president mr. evans said he thought job growth was fairly strong. ty? >>> to cut or not to cut is also a question that's becoming more and more important over in europe. after all those austerity measures, there are signs of cracks in the walls. john harwood's live in washington. simon hobbs is with me here at headquarters. john, take it away. >> reporter: look, tyler, there's a lot of concern w

joining me now is cnbc's steve liesman. thanks so much.f all, these lawsuits and all the talk about morgan stanley, is this a case where they did something that is done regularly? or did they actually cross some line, ethical or legal? >> you know, it's a good question. they claim it is. they followed normal procedures. even if it is normal procedures and there are substantial doubts if they are, the question is, why don't they make a much more public case or announcement that they have lowered the earnings outlook for the company that they're underwriting? andrea, you know, let's make a list of things that went right in this deal. facebook got a lot of money and wall street banks made a lot of commission. but that's it. you know, from fidelity shareholders who had trouble, or account holders, who thad trouble getting the stock to the way the nasdaq trade was handled to now this morgan stanley issue, everything went wrong. what's important to think about is the bigger picture here. there's a reason why these things have to go well. because

we have steve liesman for discussion about what all it means.changed from a slightly readvised 367. 370, remanins unchanged. it pretty much seems to be hunkering down at this level after all the seasonalities. continuing claims is a portion of what claims were carrying through beyond initials. so both metrics aren't surprising. the response in the marketplace is very much about the same as the unchanged number we're looking at, not much. yields at 1.75 on the ten year. looks like today we're going to have our fourth possible close under 180. we've had three in a row. preopening equities are improving just a bit. futures only down about 15 now. back to you, gang. >> all righty. steve? >> there's going to come a time -- maybe jim wants to comment on this, when we're going to be disappointed we're not getting an improvement from the level. last week we breathed a sigh of relief when we got down, the numbers reversed from the spike we had. jim, when do we start to be concerned and worried and disappointed that we're not making more progress from thi

eem becky quick along with joe kernen and steve liesman.e day off. >> morgan stanley says no order will be filled for facebook at more it and $43 per share. and tim cook is voluntarily giving up more than $45 million in dividends income. that's from a new apple program that allows employees to accumulate dividends on restricted stocks that are still vesting. and cbc broadcasts and cnbc are suing dish network. it allows people to skip commercials entirely. >> i talked to tom rogers about it the other day with tivo. >> is it over and done? >> people say just because you can do something doesn't mean you should. he said back when he went to tivo or when he was at nbc, it was possible to do it back then. i think this one you don't have to skip them. i think the dvr doesn't even record them. sorry. >> another revenue model bites the dust. >> do you know which side to come down with on this issue? >> i'm learning, i'm learning. i'm in favor of skipping the commercials. >> no! >> darn, you're smart. >> you are. >> you gave me a chance to get it ri

steve liesman, see you later. check in with rick santelli in chicago.k. >> the nice thing about government data is there's a lot of different rabbit holes we can go down. my sources, friends, have been sending me one of the best. this is u.s. corporate profits. they were down over 4% in this gdp report. that's the worst showing since the credit crisis in '08. look at a 20-year chart. this is not good. it's one of these subindexes many people pay attention to. i think the graphics do it justice. that number wasn't very good. of course we see how the markets responded. small moves at hugely important historical spots with regard to fixed income. look at a 24-hour chart, ten-year note rates. yes, we did, eastern blip under 160. and the boone leading charge on historics actually in many ways traded under 1.25, under 1.25% for a ten-year boone in europe. obviously we know what the big story continues to be today. david faber, back to you. >> you know what, rick, while i've got you. you still there? >> yes. >> i never talk to rick. people forget, germany has

steve liesman is on the set. we'll see if he has his own view. >> it is jobs friday.epartment will be released in less than 90 minutes. steve liesman is here with a preview of the data. kind of got one from you yesterday. you have done more work? i like when you do work. >> i didn't do any work this time because i didn't think it was worth it. i really didn't. if you do all these regressions and looking for trends and stuff, i think this time around it's useless. markets hit this number with an unusual amount of unsrnity. bulls and bears are part apar in the outlook but both sides have a striking lack of commitment in their forecast. the april dow joan is 168, 170 for reuter, seen unainged at 2%, the adb report, less than expected and march at 120,000. gdp came in less than expected, leading to the concern that we are at the againing of another springtime swoon and then issues about the weather givething and takething away. and searching for what is the trend. is it down closer to 100 or up closer to 200,000? a weak number looked like a pretty good until yesterday. it

liesman. thanks, steve, great stuff.t the dow intraday. 13,304, the intraday high for the year after the ism, of course, beat. we should mention for the s&p intraday, 1,422. we'll see if we get there today. a lot more "squawk on the street" in a moment. don't away. >>> welcome back to "squawk on the street." there is lots on the move today at the markets flash desk. i'm scott wapner with mpc. that marathon oil and it's on the move this morning. yes, it was out with earnings, but probably moving more so because the company saying it will look at spinning off some of the pipeline assets into an mlp and taking it public. could sell a minority interest in the unit in an ipo. but melissa, there's a look at mpc, marathon petroleum, up about 2.75% today. >> all right. thank you so much, scott wapner at the markets desk. >>> today, occupy wall street, the movement, is organizing a nationwide general strike in conjunction with may day, also known as international workers day. demonstrators say they're aiming to disrupt the 1% and

steve liesman joining us back at headquarters. >>> interesting given a week when the journal says if ify, good luck, there's only a few bank that is will talk to you. >> i think steve makes a point. a that's been echoed in the regional reports. there's more consumerlanding? i'm always in the market to buy real estate, because i can't own stocks. >> not a castle, though, in ireland. >> did you see there's a castle for sale in ireland? 275 acres. >> just came on the market. so i've been looking. >> you're getting all those e-mails. >> hey a groupon, along with the brazilian deal they're offering. >> going back to the brazilian -- >> amazon gave me 85% off on a bikram deal. amazon could kill groupon. what a gorilla. >> about a company that does not care how much growth costs, if they want something they're going to go for it, and good luck, godspeed to all the people in its path. >> high-end fashion is the next pioneer. and they're ready to take hostages. they are going to spend money. >> any opponent that doesn't care about losing money a la the justice department, the great nick cal ca

here's our senior economics reporter, steve liesman, steve. >> yeah, sue, as washington and wall street increasingly focus on this fiscal cliff that's coming, the message from the fed has been pretty unanimous. fix it yourself and don't look to us to bail you out of what is a perfectly predictable and fixable problem. doves like chicago fed president charlie evans and hawks like richmond fed president jeffrey lack er put it on as major headwinds for the u.s. economy and they both want to see the fiscal side, the administration and congress fix it. but they differ on how the fed could react. lacker says the impediments to growth are factors which monetary policy is not the remedy. monetary policy will not reduce regulatory and fiscal uncertainty. fed chairman ben bernanke has not ruled out more quantitative easing, but he talked down that possibility in relation to offsetting the fiscal cliff at his press conference two weeks ago. >> if no action were to be taken by the fiscal authorities, the size of the fiscal cliff is such that there's i think absolutely no chance that the federal res

steve liesman. >> now to something completely different.e shot of our new stock exchange logo. you're looking at me at the moment. but there you go. >> there it is. >> that's the new logo for nyse euro net. it's a representation of the world. we'll sit down with its ceo duncan niederauer in a few moments. >>> let's welcome duncan niederauer, ceo of the nyse here to post nine at the new york stock exchange. aside from the ribbon cutting, you've been here before. >> a couple of times. >> we have to talk about what is different today, that is the logo. why the change? >> we thought it was overdue to refresh the brand a little bit. i thought we needed a logo that more envisaged the community and unlocking its potential and the fact that we are a global company, not a u.s. company and a european company. but one globally integrated company. so we thought it was time. >> i'm not sure if we can take a look at it. for all those big words it's fairly nondescript. i kind of have instantly forgotten what the old logo was when i saw it this morning. an

steve liesman, the fed minutes, are you surprised about the information we got in about half an hour ago? >> a little bit. just the way that they are kind of parsed out. what happened is, more members are willing to step up to the plate if the economy falters. however, fewer members compared with january are assuming they won't have to. i think that washes out for the market. i think what the market did was read the first headline that we presented here, which is that it's gone from a couple to several willing to come in if the economy falter. and then there was the headline right after it that said, those that are assuming it went from a few to only one. so it is not the base case scenario for the fed right now, maria, but they will have to do additional quantatative easing and that is a change from january. >> and certainly the markets are different than they are overseas and it's a safe haven, right? >> indeed it is. as far as what is going on in greece, not only do we have that issue and i'm telling you, people on the floor are taking bets as to what day greece leaves the europea

steve liesman joins us with what you should be focusing on. i'm just wondering what today's data will mean for what the fed is -- the -- some of the underliving data, even though it's weakened, still supports that idea. the trouble is momentum. when you yous guys start drawing your charts, the concern is we're weakens the way we have after coming through a relatively strong first quarter. i think this brings the federal reserve back into play but i want to get to that in just a second. let's talk about tomorrow's number, which the estimate was 155. i'm seeing economists coming in and lowering their estimates because of the adp report. i'm thinking 125, 130. >> the lowest i saw was 95 maybe. >> under 100, that's a number that brings the fed right back in. i think it's not that simple. but it could bring the for back in. i wrote you a checklist. that's the non-farm say roles number. i don't know if you have my checklist back there but it begins with weakens if we get into a zero handle, 0.8, 0.9, that brings the fed back in. if thein employment

steve liesman is our senior economics reporter. steve. >> yeah, tyler, that's exactly the way the market is focused right now. investors faced with a simple but pretty fateful choice when it comes to the adp number. to believe it or not, and relative to that bls number coming out on friday. here's why some economists are saying discount this adp number. it's payback from warm weather and the bls captured that payback in the disappointing march jobs report. so it won't show up again in april. ubs also pointing out the last two adp years they missed in april by an average of 144,000. that's a big miss as far as adp goes. a very powerful reason to believe the adp number. it does go along with other softer economic data, especially jobless claims pointed to a weakening in the economy. joe maroff saying the economy hit a low in the spring, whether that's weather related is not yet clear. high frequency overpredicted in march so could swing the other way in april. but we can't ignore the headline number. we think this softening will not l

. >> let's get to steve liesman with breaking news. what do you have, steve? >> what we've learned with growing concern over resur gent european financial crisis, brian, president obama will use his time with g-8 leaders this weekend to urge europe to use the tools its created to handle financial problems using aggressively and remain firmly on the road to a more resilient euro area. europe is taking on new urgency for the white house as the elections draw near. with a still teetering u.s. economic recovery, among the keys to the weekend it will be the first meeting of global leaders with french president francois. it's going to take time to work out that key german-franco relationship. they're not expecting concrete results from the weekend. and they do see a long road ahead, we're told. officials say the europeans have better tools, like the $500 billion firewall they created to deal with financial problems and recapitalizing their banks, but they think it's a matter of political will to use them. the administration has long maintained it's within the abilit

brian hamilton, sageworks ceo joining us along with steve liesman. brian hamilton, i want to go to steve. a lot of stuff's been made about this labor force participation drop off. to me it says plainly, either there's a skills gap, a geography gap or people simply don't want to work. what is it? >> i guess the best explanation i have is the latter one. i would seriously revise that as the last option there, brian. that's because one reason why the participation rate is falling is because the population is ageing. something like 10,000 baby boomers retire every month now or something along those lines. and those people in the upper age brackets or higher age brackets tend to work less. that's one part of it. i think another part of it is discouraged workers, the skills gap, the geography gap. i did some work on this. about half of it has to do with demographics. this actually goes back about 12 years the participation rate's been declining, brian. >> today, brian hamilton, the interesting thing, you've said this before the whole idea of job creation is

first let's get to steve liesman with the minutes. >> mandy, thanks. recovery faulters. remember last time we had a change it was only a couple. now it's back up. however, only one member is supporting or assuming additional qe right now. here's the change, folks. we had a few supporting here if the economy falters in january. that's what caused the selloff when the minutes came out in march. now that number's back up to several. don't make like you understand this because those assuming more qe, those building it into their assumptions for the balance sheet went down from a few in january to one in april. there was of course no count in march because there was no forecast from the fed on that issue. so that's an important change the market's going to have to take account for. more support if the economy falters, but fewer building it into their assumptions on the balance sheet on the fomc. other headlines, the european financial crisis cited as a significant risk to the u.s. economy. there's also significant concern about the u.s. fiscal policy and repeat of the august

that's your cue, steve liesman, take us away. >> thanks, sue. i'm calling this the purgatory number. little help on one hand but not bad enough to bring in the federal reserve on the other hand. it's a "disappointment if not a crushing one. at april's rate of job gains, it would take well over three years to return to december '07's employment level." there was some good and bad in this number. let's look at good. revisions were to the upside at 53,000. temporary help up 21,000. average weekly hours unchanged at a relatively high level relative to where it was before the recession. manufacturing hours up with overtime up as well. and the unemployment rate did decline to 8.1%. although part of that was a decline in participation rate. part was a decline in the number of unemployed. now look at the bad. government back to its old tricks of reducing the work force down 15,000. some of that may be related to the easter holiday. service is just not doing what it needs to do to have strong growth in this country. just 116,000. we need that number near

let's bring in steve liesman at headquarters with more. what should we expect today?ee you. wish you were here with us. >> my track record there. i thought last month was a non-starter, a non-event. look at what it did to the market. it was a big mover. i'll explain why in a second. s&p 500 falling .4%. gold down half a tenth and then the dollar index rising and the reason, of course, was because the fed we thought they were going to have a big discussion of qe3 and other stuff. didn't happen. what happened was what we thought was a few members thinking more qe on the way just became a couple. so that gives us some guidance on what to look for. how many members are supporting qe3? how much of a discussion was there of things like you mentioned europe? i want to show you the probabilities i put on outcomes for the fed from a smart observer. he say there is's a 15% probability that strong data is going to lead the fed in the coming months to soften the guidance. a 30% probability weak data leads to more asset purchases but a 55% chance operation twist ends no change in

steve liesman with his exclusive interview with new york fed president william dudley. be of more qe in an election year? fallout from facebook. find out whether the ipo fiasco has bummed out the best and the brightest out in the valley. and could the yankees really be for sale? find out on power. now back to scott and more "fast half." >> thank you. our next guest has $48 billion at work. at the first eagle funds. he joins us now with his top value picks worldwide. great to have you on the show today. welcome. >> thanks for having me. >> you finding more opportunity here in the u.s. or elsewhere? >> you know, first eagle, it's very much of a bottom-up approach to investing. it's not a top-down approach. i will say, though, that the weightings of the u.s. domiciled companies have inched up over the years in our global fund. so that's some indication of where we're finding value. >> okay, let's take your global fund. i'm looking at the top five holdings here. i really want to try and give people some quality and investment ideas. 5% of the portfolio in gold bouillon. so

you're going to stay with us and we're going to bring in steve liesman because we're going to talk aboutsomething here very provocative said in a column by david einhorn. setting his sights not on herbalife but on ben bernanke. einhorn blasting bernanke and the fed over its low interest rate policy likening it to eating jelly donut after jelly donut after jelly donut. he says chairman bernanke is presently force feeding us what seems like the 36th jelly donut of easy money and wondering why it isn't giving us energy or making us feel better. einhorn, does he have a point? steve, what do you say? i read this article too. if nothing else, he really does make you think. >> definitely makes you think. but makes me think that he doesn't have a good beat on monetary policy. i think he's gone astray in several places. the first is that he ignores a lot of things going on out there. he has a misconception of who the savers are in this economy and who the spenders are. who the leveraged are and the unleveraged are. what he wants to do is raise interest rates to the 3% range. and he says that will

steve liesman is here now going to tie the macro picture -- >> at the cross roads. >> at the cross roads of macro and micro. >> x marks the spot. profit concerns for u.s. companies and questions about the economic outlook here at home. take a look at what we're talking about. the euro fallen to a near two-year low against the dollar. still again below 1.24. just a year ago 1.38. about a third of the decline has come in the past month with growing concerns of greece leaving the eurozone and recession in europe. carl wineberger the u.s. has been on a broad decline latest financial disarray in europe every time something comes up the euro takes another leg down. economists say it matters a lot, why the euro's falling and current reasons don't bode well for anyone. the flight to safety among the dollar. hurt this rebound we've had in u.s. manufacturing by making u.s. goods more expensive abroad and hurt overseas profits. could help more european exports and ease u.s. inflation, you see that with the dollar coming down providing more flexibility to the federal reserve. what am i to think abou

steve liesman. >> did you block him purely on his "avatar" or what he was saying to you? >> no.it was actually a picture of him burt he looked like -- >> it feels good. >> steve liesman, buddy, gone fishing for a good cause, oolfe good. a great cause. the one day fishing tournament in manhattan. what have you got for us this time? >> joe, thanks. we have the real stars of this event. some guys in the wounded warrior project, one of the main causes of this event to try to help the wounded veterans. we have jim, a colonel. tell us about the wounded warrior project. >> the wounded warrior project looks at thanking thousands of warriors who have come back overseas from iraq and afghanistan, their service and sacrifice and we want to say thank you to the wounded warriors deserving of everything they get. >> and cnbc helped contribute and sponsor this event. jackie, where did you serve and how long? >> i did four tours in iraq and pretty much most of 2003, 20 between. >> i asked you -- 2010. >> reporter: i asked you before, you left a little earlier than you wanted to. >> i was involv

steve liesman has a special report. be a busy one. we're going to count down to jobs friday. we'll bring you a preview of the events and what's likely to move the market ahead of that big jobs report on friday. we'll be right back. for accounts receivable today. i mean i know that this is important. well, both are important. let's be clear. they are but this is important too. [ man ] the receivables. [ male announcer ] michelin knows it's better for xerox to help manage their finance processing. so they can focus on keeping the world moving. with xerox, you're ready for real ness. how do you know which ones to follow? the equity summary score consolidates the ratings of up to 10 independent research providers into a single score that's weighted based on how accurate they've been in the past. i'm howard spielberg of fidelity investments. the equity summary score is one more innovative reason serious investors are choosing fidelity. get 200 free trades today and explore your next investing idea. >>> the $2 billion trading

steve liesman, what do you think?you already know the number. >> i know what it is, i have to vamp -- >> move your eyebrow if it's above. >> i cannot do that. we're the best at keeping an embargo. >> lately things have gotten worse. would it be safe to say it's disappointing? >> it would not be safe to say anything. it's fun to read the reports of the guys forecast after i have the numbers. total private sector growth under what the market expected, 133,000, april revised down from 119 to 113, nonfarm payroll, the estimate is 155,000, that includes the government. so my guess is we're looking at a number that would be if adp is correct below the 133 because in general government has been subtracting from employment. folks, i think the inescapable conclusion is we are now in a third summer/springtime in a row economic down draft after a decent first quarter, the jobs market is now reflecting the weaker economic data that we got all through march and april. >> so we can't call this the give back anymore? >> that's exact

steve liesman did some digging and he has some good example. >> i like the way you start that off.p from triple a and whiffs. >> i didn't make that up myself. >> the history of ipo pops and flops, it's rare to have a flop like facebook. very, very rare. the average one-day ipo gain usually 20%. so what we're seeing here with facebook is rare. not on is it down but it's down substantially below what it normally comes out as. if the second day close is greater than the ipo, six months later the stock on average is up 8.1%, this is from our friend, mr. jay ritter, mr. ipo, university of florida. if the second day closes below the ipo price, you have only a 3.9% return which underperforms the market by nearly 3%. that would tend to bode badly for facebook holders right now. hold on because we asked mr. ipo to look at this by company size. a large company debuting with a down ipo price is very rare indeed. take a look. if the second day close is greater, it's 2.5%, second day close, 8.1%. so there is hope for your facebook holders that the stock could come back. all of the underperforma

steve liesman has joined us in studio.t about now, i think. >> yeah. survey says, an increase of about 2.5% in terms of starts from an upwardly revised 654 which went to 699. that number moved to 717. so really benchmark against the original release, much better number if you look at permits, they are down about 7%. exact opposite story. but same revision. originally released at 747 last month moves to 769. that number now moves to this week's current 715. down 7%. so revisions were both upward to last month's data on the newer home side of course the start side that continued to move higher and this is a good thing. now there's going many debates out there as to whether housing starts is a good idea when we have all this already built inventory. not for notice decide. that's a market force to do when you have economic freedom at least for 2012 thus far and if you look at what's going on in interest rates they are up several basis points. you know there is more stability for the instability in europe at the moment. and the

talk about the bank of england's decision as well fed policy here at home, cnbc's chief economist steve liesmanou know what, i've been evolving on my view of what you are here. and i just finally decided to face the facts and call you what you are. there's a lot of this going on. >> it's nice for to you say those nice things publicly and not say off camera what you say i am. there's some hope this morning the bank of england would announce additional stimulus before we've had a bunch of quarters of negative decline in england. but the concern there is inflation, which is running at 3.5%. that is staying the hand of the bank of glaengland. at home, increasing concern about the fiscal cliff. to hear fed officials talk, it's up there with concerns of europe, housing. evans said the stimulus already in place that's being removed is providing a little bit of headwind. the cliff at the end of the year is just what that writ large. significantly fed chairman ben bernanke talked down that possibility at his press conference two weeks ago. bernanke is concerned over the fiscal cliff, too, but he doesn't

. >> before you came on i was having a conversation with steve liesman, who has a question for you aboutonality disorder or did it take a personality disorder to ultimately figure out that the financial crisis was upon us? when you think about the characters in "the big short." >> they were all misfits you said. >> not all of them but many of them were misfits. i think it helped. i'd put it this way -- it helped to be an outsider and to be outside the mainstream one way or another. and one way to be an outsider was to be a misfit. i think that's the connection between the unusual personality and the ability to see what was going on. >> michael, when i spend time in washington, one of the theses, the premise that people say to me about "the big short" is they say you read that book and you think anybody could have figured out the financial crisis was coming. is that the message that you were trying to send? >> no. the message was more -- no, because i think it was actually a couple things going on here. one is it was very hard to figure out. i mean, the people who figured it out were very

steve liesman has more. >> the fed will be investigating this.they miss it. the feds will want to know was this a prop trade or a prop hedge. i want to show you a piece of the letters that senators levin and merckly sent in february "quote, there is no statuary basis to support the proposed portfolio hedging language nor is there anything in the legislative history to suggest it should abe loud. >> what does that mean? >> there was a big hole in it and then it was tightened up. then the rules were actually written and the rules were written to allow for this prop hedging or whatever you want to call, macro hedging. >> portfolio hedging. >> john canis joined us earlier and he said there's nothing in the volcker rule or in glass-steagall that would have prevented this. >> what i'm told is in the rules written by the fed, this macro hedging is in fact allowed, raising a question we haven't spoken about yet which is is the fed here a victim of what they call regulatory capture in we spoke to levin and merckly last week and they said what the fed hims

steve liesman has some news for us. >> david, thanks very much.fed has delayed the sale of a maiden lane three cdo. the fell hd had been selling of those assets that it got when it bailed out aig. and they've delayed the sale of two particular, $1.7 billions if bonds. a source selling cnbc that new information has come to light about these cdos and delaying, not canceling, the sale because it wants to it give investors a time to analyze and digest it this information. it this sale will be rescheduled. shares are down. decline seems to be connected with this aig, obviously has an interested in this maiden lane portfolio, and it's unclear as to whether or not the selloff is because the thinking is the value it might get from the maiden lane three portfolio are down, or if whether or not aig may take an interest in this. it had expressed some interest in purchasing some of these cdos. but the fed apparently will reschedule the sale whether or not the new information would reduce the value sun clear. jimmy. >> okay. thank you very much. yeah, they hav

steve liesman joins us now. steve?erican express of 541 senior financial executives around the world showing companies are no longer pursuing a cash preservation strategy. now they plan to spend it. 45% say they plan to spend their their cash reserves. 45% say they didn't last year. 62% say they plan to pursue a deliberate cash preservation strategy. where is the money going to go. they asked how are you very likely able to spend it. it's easy across the board. some for acquisitions. expanding jobs in operation. that's very likely. if you just say likely, it's about 7%. spending could be difficult for the economy. surveys suggest jobs are indeed part of the equation. worldwide amex says that 53% of executives say their company plans to add workers in the u.s. a little bit higher, 56 planning to hire. just 22% plan to cut their labor force. 17% say they're going to do it to bring back or restore cuts in previous years. the overall hunt for the economy, a bit more subdued than last year, however. 64% globally looking for

get some reaction to the ism data from steve liesman back at h.q.ou see inside the number? >> an interesting number. the top line, a definite disappointment especially because the factory number held up pretty nicely. new orders were down. that's an important number right there to be down. employment also down. interesting things in here. inventory's unchanged, prices were down. the backlog was higher, exports higher. a mixed picture. no doubt that the top line's a disappointment. i think this would have been sort of a green light for the bulls on tomorrow's number. but i think now it's flashing a little more yellow as a result of this. let's take a look at the jobless claims number this morning that rick mentioned. they were higher than -- they dropped more than expected. and you can see here the important thing is it did sort of undo the spike we had that some people attributed to that earlier easter and some people say it was a roll-off of the warmer weather. i want to show you the commentary out there. steven stanley saying, quote, this should b