Transcripts For CNBC Squawk On The Street 20140307

My take is dont get too excited. Why . Because we just found out why weve been going up. Weve been going up, s p, people trying to figure out why. You have good employment. You have workforce growth and the hours not that great because of the weather, but i think you say to yourself, well, why is the s p going up every day . Oh, employment has gotten better and thats a major switch would it shock me if the market takes some profits in this . No, because its been going up on anticipation of something good and then we got the big enchilada good. I kind of like it. The s p has rallied the past ten jobs fridays in a row. Some say thats a ridiculous metric, but maybe its time for a reversion to the mean. No metrics are ridiculous if they just look, i forgot to wish the bull market happy birthday. Of course, it never happened, you know that . You know the bull market has never happened. Jim has been on a tear lately of the haters of this market, right . Yes. The haters will have to asterisk and find something bad. You are back from the real world, the business world, you know theres something lurkingly bad about this number to undo the gains weve had in the last five years. What is it . Its many things. All you need to use is the word hallow. Hollow. Hollow, whatever you talk about. Its hollow. The gains are holley. Victory. Every line was good of course, its all asterisks, its the fed, its bernanke, yellen. No. Sometimes things are good. And the market has been good because one of the things that makes a good market is employment growth. It just works. Because you want to get away from a recession but you dont want the fed hammering you. I do not see the fed hammering you on this number. Even though the revisions to december and january not dramatic but they were up instead of down. Right. You talk about the fiveyear anniversary of the bull market which is this sunday. Heres the cover of the usa today, not only a chart with the aging bull using the horn as a chart for the s p but then the Household Wealth figures underneath that were all 9. 8 trillion richer which some people say will spur spending, jim, some say wont. It did say it was not eke qually distributed. I, of course, added an r in front of aging to be less ironic, raging will. But you dont want to get, like i said, this is why we went up and there is more wealth, but you have to caveat the wealth because it just simply didnt go it was not trickle ooh, i was going to use a reagan term. Asymmetric distribution. Maybe its the 2 and we got to double it. Its not the 1 . It would take us down aways in terms of the actual income. Whoever represents the 2 or the net worth. If you went from 1 rich to 2 risk, its remarkable. Per capita Household Wealth is almost back to the precrisis high, not there yet, but its getting there. They havent wanted to look at it. Its been a terrible thing to look at because it never got back to where it was and now its finally getting back. When you have an article like that, its not alone, theres dozens, that basically say, listen, you are back to even and so, therefore, its bad. Im not buying that. Back to even is a step towards going above even theres nothing the matter with saying things may be getting better. Theres nothing the matter with it. All right. Ive been out a few days, not out, but out on the west coast. So, here we are. We finally got this jobs report weve been waiting for and talking about most of the week and its not talking about the weather, what does it mean for Economic Growth . Are we looking over 2 1 2 percent gdp or 3 and bring it back to this market . What are we trading at . 15. 7 times earnings. I think march will be even better. I think it explains why when you have the retail sales that were so dismal like a target, the stock didnt go down. It explains why youll see a foot locker today that was up gigantically. Thats real discretionary spending. Even big lots one of the worst numbers, skull candy, only down 28 . The stock was up. People looked at negative news and said, do you know what, its okay and now maybe this is why. Were going to talk about all those names a little bit later on. As we mentioned earlier this sunday does mark the fifth anniversary of what we like to call here at cnbc the haynes bottom, thats when mark haines correctly called the stock market bottom in 2009, it was a great moment for squawk on the street and if you remember it or if you dont, take a look. However, im going to step out on a limb here. This is the big hold on, everyone. I think were at a bottom. I really do. At that point the dow was down 57 . That was a great call. I switched my whole direction when i heard that. I followed mark for years. I know. You can look back in retrospect certainly even a year later or even a few months after lets call it march 9th which was the official bottom. If i remember that, right, we come out of the crisis, we come out of what we thought was the end of the world but then we seem to be heading right back to it when it came to the s p and i remember people saying, oh, you know, forget it, were going to 400 on the s p. Now were done. Now, this is going to happen and youll have this unwind and this. So, Somebody Just commonsensewise saying this is ridiculous. A great deal of value there when ge was 6 and citi was under a buck and bankamerica was was it under a buck also . Yes. Up believable. Mark people who dont follow, didnt remember the great haines didnt understand in 1999 and 2000, he would go out on a limb and say, in 2000, this is ridiculous. And he went out on a limb then and said its ridiculous. He never went out on a limb unless he felt commonsense it was over done. With decades of watching markets and the economy and people. Yes, people. Which is something he understood really better than most and i tweeted out that quote this morning and the Immediate Response was we miss him. As do we here. Absolutely without a doubt. Lets move on to some deal news. Not unexpected, cerberus has agreed to buy safeway. The deal is worth more than 9 billion. And safeway will merge from albertsons which cerberus bought what it didnt already own from supervalu last year. They had some of albertsons and then they bought the rest, the deal will give safeway shareholders what they are saying is 42 bucks a share, 32. 50 a share in cash and the continued spinoff thats coming. Of one of their units and then they will have a cvr based on other asset sales. You add it all up and you get to 40. Ive been tracking this deal as we know. On monday i spoke about it. The likelihood it would be cerberus and also at 38 plus the stock seemed to be discounting a 40 deal and its got a little bit of hair on it if the sense if you are a risk arbiter and hedge the various parts, you cant do it. You cant borrow the thing they are spinning off. You cant hedge a cvr and the Dividend Income theyll be receiving if you are a foreign holder, you dont want it, you cant hold it, so there may be selling pressure. Whats perhaps most interesting is private equity borrowing over 7 billion to get a deal done. The moneys there if they want it. Cerberus has not always been the best of buyers but they did follow through here and got a definitive agreement. There is a breakup fee and when it ends its a 250 million breakup fee. Why is that important . Well, again, weve been talking about whether kroger might have some interest here. Im not picking up that krogers in there. Really looking hard. They are not expected to show up at least based on what im hearing. Maybe some of those things that will be sold kroger will show up for. Interesting. Kroger Conference Call they just reported. They kept trying to get them to take the bait. Please, tell us. And they kept going back to the Harris Teeter acquisition which was very successful and how they dont like to lever up their Balance Sheet. One of the great operators doesnt want to lever up their Balance Sheet, but they did succeed in albertsons, they are not losers in this segment. No. Were talking about as you might expect synergies that will accrue. Right. To albertsons, cerberus which owns albertsons with the acquisition of safeway but its a big deal not that safeway hasnt been private before. It has. 1986 and went public in 1990. A kkr deal from many years ago. Under some pressure from one of its largest shareholder that owns 6 of the stock some time back, they sold a bit. It ended up where a lot of people expected it might. But there were plenty that were short on the stock. Thanks for the nice emails. Ubs goes from sell to hold this morning on safeway. Gutsy. Nice. Nice. Nice piece in the Washington Post this morning, too, about whats happened to supermarkets in general over the past ten years. Theyve lost how many points a share to other retailers . 15. Really . 15. As a group. Big Grocery Stores losing to amazon. Losing to whole foods. Losing to cvs, right . Thats where you can buy food these days. Without a doubt. Kroger celebrated a 0. 5 share gain in their Conference Call and cited that they were taking some well, didnt say directly from walmart. I thought that was interesting because the losses are so staggering they are willing to pat themselves on the back for anything. Yeah. Spending a lot of time on amazon as i have of late, they are early days here with fresh. Very, very early days in terms of amazon competing with grocers so to speak. Came up on the costco call and you could tell kind of, like, dripping sarcasm, yeah, sure, you know, come get me. But amazon is going to come get everyone. Underestimate amazon, that would be smart. Theyre not. I think they always have that same thing in the back of their mind which means we have to play by earnings per share and amazon can do whatever it wants. Do you feel that way when youre out there . Yeah. That is a frustration for many people. I dont blame costco which is a great operator. Coming up this morning well get the white houses first reaction to that jobs number, of course. The labor secretary, thomas perez, will join us live. We will be right back. Tall the building is, or how ornate the halls are. It doesnt matter if there are granite statues, or big mahogany desks. When working with an investment firm, whats really important is whether the people behind the desks actually stand behind what they say. Introducing the schwab accountability guarantee. If youre not happy with one of our participating Investment Advisory services, well refund your program fee from the previous quarter. Its no guarantee against loss and other fees and expenses may still apply. Chuck vo standing by your word, thats what matters the most. Okay. Lot of retail news to walk you through this morning. Gap down sharply after the retailer reported an unexpected decline in february sales partly because of the weather. Big lots, though, up big in the premarket after beating estimates for 4q and foot locker shares are up after 4q numbers beat forecasts. Big lots beat by a nickel. Getting it out of canadian business. Not a lot of color in the release. No. But the call did begin at 8 00 a. M. You have the good, bad and the ugly and the ugly is going higher. Big lots has been horrendous and they werent as horrendous as we thought. The gap just reported a good number, so when you saw this reversion, look at these numbers, gab global down 10 , Banana Republic down seven. Old navy down six. We thought good things were going to happen because the last quarter was so good. Thats the weather, right . I mean, come on. Okay. Right. And then ultimately foot locker was up 5. 5. What would they have done with Better Weather . Seven . Eight . Im just saying i dont know. Today were looking and saying well care about the weather on one side of the street and not the other. I think gap, im not crazy about gap stores but i dont think it should be down that much. Im not crazy about big lots and i dont think it should be down that much. Abercrombie repositioning hollister all this time trying to be more like h m more fast fashion. It will be more interesting to see if the particultactical ter help the overstored environment. Maybe they are no longer going to go commando over hollister. All right. Well, i guess that brings that block to a close. They are talking about the idea of a management secession and we kind of want that. Jeffries is in the wall of shame. Just kind of feel like still. Also like mason fashion fashion backward comments about yes. People and just left me cold. I dont know about how you felt. I didnt really focus on them as much. Just put it this way, they were not politically correct, how about that . Yes, i do recall that part of those comments. One thing h r block, the average tax refund so far this year 3,034 up 3 from last year and 48 million of americans already have it in direct deposit and i wonder how much of that is going to go to a Cash Register in the next, i dont know, four to six weeks. Spending power. I had Pinnacle Foods on, birdseye and duncan hines. And no one is talking about the obamacare pushback, in other words, that obama pushed back the regulations for small business, maybe they started hiring. The anniversary of the payroll tax increase, does that start to help in a way . I think so. These are all positives and you might say that they are whatever the sequester caused in terms of damage, anniversary of that soon, too. The government played a negative role and this is the first month when the government gets off the backs of its people. Its a reagan line. The trickle down. Was it a reagan or trotsky line . No, trotsky believed the workers should own the means of production or its russian prune juice. Anyway, well keep an eye on all of that. As we said the anniversary of the market and the retail news. The euro is above 139 for the first time in 2 1 2 years. Weve not even mentioned that. If you are an exporter in europe or you are doing the ppg and eating a lot of the Big Companies have big european business, they will beat numbers off this. I should have mentioned that right off the top. Yeah. Well get more to it closer to the bell. When we come back, its jobs friday as you know. Nice number 175, what should you be watching today . Well get cramers mad dash one more look at futures which did extend their gains nicely, although we are off the highs. A lot more squawk on the street from the nyse straight ahead. For tapping into a wealth of experience. For access to one of the top Wealth Management firms in the country. For a team of Financial Professionals who provide customized solutions. For all of your Wealth Management and retirement goals, discover how pnc Wealth Management can help you achieve. Visit pnc. Com wealthsolutions to find out more. announcer scottrade knows our and invest their own way. With scottrades smart text, i can quickly understand my charts, and spend more time trading. Their quick trade bar lets my account follow me online so i can react in realtime. Plus, my local scottrade office is there to help. Because they know i dont trade like everybody. I trade like me. Im with scottrade. announcer ranked highest in Investor Satisfaction with selfdirected services by j. D. Power and associates. Because im happy clap around if you feel like a roll without a proof because im happy clap along if you feel like happiness is the truth because im happy even on three hours sleep i can get going. Redeye . Absolutely. You are probably out there and people are talking about this ebay again. The land of venture capitalists. I miss you talking about ebay because of the missive and Marc Andreessen firing back at icahn almost writing a letter a day on this. As we talk so often, it changed from a debate about the merits of whether this company should split up paypal or not which, by the way, is worth coming back to. Its back to andreessen and his actions during the skype transaction. Andreessen fires back at icahn and said carl icahn 2014 would take a dim view of the Business Ethics of carl icahn 2005 given various things that he did on the board of xo and weighs that he went about making decisions. Yeah. He sold it to himself. And selling things to himself. I thought that was a really interesting point. It was a different era. Xo that was all insider. Do you know what, this is the kind of thing where andreessen is reacting to what happened on squawk box the other day where icahn called in and said this is the most egregious it didnt take long for them to find something equally as egregious. And Silicon Valley is ral rallying around ebay, reed hoffman defended why paypal belongs with ebay and defending the company and john donahoe. Andreessen now finally firing back on his own sake. Remember, hes on the board of facebook, hp, and ebay. This larger question of whether there are conflicts inherent to a venture capitalist being on public boards, many would say our expertise is unique in a lot of ways and our Technology Understanding and put up with the conflicts because were worth it. As for skype the only thing ill say is people that are really interested, go back and look at the debate around the first deal. The intellectual property of skype was not owned by ebay and that injected an element of complexity into the negotiations they were having with skypes founders at the time. I didnt know that. When you look at i have to say when you look at how andreessen acted its very unclear to me whether the charges that icahn is bringing have a great deal of merit. When it went to 8 billion it had the ip. Yes, they brought the ip back in. And you had the founders back in and, of course, ebay owned 30 . And it changed a lot of the willingness of a microsoft to buy a company that didnt have the ip that might get sued by its very founders who had the right to say you cant transfer the ip, youre only licensing it. Theres the insight that i missed. Thank you for coming back. Well talk cliffs natural which is a stock you know very well. Well, there you see u. S. Labor secretary thomas perez, hes going to react to todays job number. Hell join us live on a first on cnbc. Got the opening bell just a few minutes away. Stay here with us for a squawk on the street on a friday. [ girl ] my mom, she makes underwater fans that are powered by the moon. She can print amazing things, right from her computer. [ whirring ] [ train whistle blows ] she makes trains that are friends with trees. My mom works at ge. [ tires screech ] chewleys finds itself in a sticky situation today after recalling its new gum. [ male announcer ] stick it to the market before you get stuck. Get the most extensive charting wherever you are with the mobile trader app from td ameritrade. Invest in what you believe in. Invest in america. This monday cramer hits the road to explore how the countrys Energy Renaissance has reignited manufacturing and put people back to work. Get an inside look at the Companies Leading the charge towards energy independence. A mad money special from the gulf invest in america, born on the bayou this monday. Now, thats a promo. Jim cramer heading to the bayou on a chopper going to a rig . Yeah. Were going to be on a rig in the gulf of mexico and this is the next big leg of rediscovering our oil. Also going to a nucor factory, the first really to take advantage of the bountiful natural gas. This is where the jobs are being created, no doubt about it. Well go right on the rig and find out whats happening. I want to fish off the rig but apparently the problem is the net. Yeah, yeah. Youll need a long line. I cant wait to see. Thank you. When they try to harness your energy and put that in the ground. I got to tell you, i am so looking forward to this. Our staff is putting together one of the most exciting shows i hope to ever do which is the backdrop of the rig and really find out about manufacturing might. Thats whats going on down there. Well, youve done a great job on the show, on this show and on mad money, of course, i think over time of just giving people a real sense as to the enormous change thats taking place. Thank you. Thank you. In our production of energy and how important it is. Theres so much more to be done, we can do it every single day and still not do justice. At least you are giving it a shot. We havent retapped the gulf of mexico. The new Technology May reveal, gulf of mexico is one of the biggest finds in the world ever. And then the new poll abc poll on the percentage of americans who want the keystone, positive by a 31 margin want to see it done. Warren buffett wants it done. I had csx, they are moving balkan oil by rail and they have the best safety records, dont freak out, but thats how its going until you get the pipe. In the meantime theres more drama brewing at pimco. Accord to reuters founder and cio bill gross accusing departed ceo Mohamed El Erian by seeking to undermine by talking to the wall street journal by talking about the problem between the two executives. He said that he wrote the journal article describing the worsening relationship between the two men and reuters asks for evidence of this and he says, oh, great, he has you around his charming right finger, too. As if this thing could not have become more unseemly. Whoa. Ooh, hot potato. Not good for anybody. No, not good marketing. Not good for potential inflows im guessing. I always thought these were two of the great gentlemen and i wanted it to stay that way. Just nice, good people. Come on air, really been very supportive of trying to explain people everything and this is nasty. Right. And it makes for great headlines but to carls point, its not good for business. No. In terms of their ability to gather assets. Based on performance it wont help that much. My guess was gross probably thought he and reuters were on background and maybe reuters did not agree. People should know what that means. Holy cow. Anyway, theres the opening bell on a friday, a jobs friday. And a look at the s p. Down at the big board coupons. Com a provider of digital coupons and promotions celebrating its ipo. Well talk to the ceo in the next hour. Over at the nasdaq Cybersecurity Company fireeye, well talk to the ceo in about 45 minutes. Thats a big get. If it goes higher, remember the stock was up down from 96 thats a good sign, because, boy, 14 million shares, only 5. 5 from the company. This is a very important test of the bull. That deal. On a broad level, jim, we know that the jobs number was above expectations. Right. Market tends to like jobs fridays but you are going into a weekend with a lot of uncertainty out of the ukraine. Which one wins . I think that weve had a big run. And its entirely possible that people want to ring the register. Always people, by the way, that freak out that Interest Rates are going higher. Remember, the banks need this. This is a number that will shift money into the financials, so i think the overall market may be more muted. The financials are going to be very strong today. Very big upgrade with prudent l prudential. Pru. Because this group is remember, this is the Largest Group of the s p and to see Merrill Lynch go positive, this stock has been creeping up with numbers being cut. Watch citi that stock has been creeping up with investigations and numbers being cut. I like it when stocks move up when numbers go down. We used to say, only if the financials could keep up and take leadership. Whats happened the past couple weeks is interesting. This is the baton passed to the group. As biotech corrects. Gilead, rumors that merck has a better hepc. And they got to celgene. These were market leaders. If they cool off and we had banks come in, they are cheap on earnings. Look how cheem some of the banks are on earnings. Book value has been scrubbed. They need to go up and be the next leaders. Thats what you need to see right now. Morgan stanley prudential and Morgan Stanley. The top three components with financials. Morgan stanley my Charitable Trust sold too early. Had a big run but i think jpmorgan goes to 60. Morgan stanley approaching a 65 billion market value now. There was a point at which Morgan Stanley was bitesized. If there had been the ability for consolidation conceivably it could have been the victim of it. Of course, there is no consolidation when it comes to Financial Services. Im not sure when, if ever, well get back to that idea. The bigger getting even bigger is not a thought that many would embrace. They have not shrunk to grow. They have taken over to grow. And davids right. The concentration Alexander Hamill would be rolling over in his grave but, of course, he went to his grave because of a duel. Not far from here. Grew up in elizabeth, new jersey. But hes right up the road in terms of where hes buried. Hes right here. Bair and hamill and i learned this on jury duty, the judge took us aside. A little civics lesson. I thought it was pretty always good. El erian gross, or burr hamilton. How about icahn andreessen or icahn donahoe, or icahn with anybody. I know. The insurers and now its metlife joining the pack at the top. Hot. Aig and then laborrelated names among the top 15 or so this morning. Weve got people who were betting incredibly low on this number. Remember, this was one theres definitely no surprise. If you get the financials to lead, what will happen is a lot of people will drag kicking and screaming. A lot of people were saying, listen, its all done by salesforce. Com and workday, you know . Hike right. Work day yes. There are a lot of people who felt if we keep going up on companies that are selling on revenues and not on earnings, its a big mistake. The earnings for the banks are going to be very big if this yield curve gets a little inflection and Interest Rates go to three on the tenyear. But they are not Growth Stocks and theres a shortage of those, hence the likes of workday which is incredible multiples. Yes. Everyones always searching. How do you value a 50 grower . How do you value a 60 grower . And i had Pinnacle Foods and they are a 1 grower. You dont. You are paying the price. Thats what the market is telling you. Is that what you think happens . Is there a dearth of companies for growth. Because many stay private and then the sequential growth rates are starting to slow. Theres a dozen of companies i follow with 50 growth rate and when you talk to the companies they are taking over the world and they are cloud based so with that dows up 42. Courtney reagan is on the floor for us today. Good morning to you, carl. We saw the futures jump on the jobs report. Its funny because if the jobs report hadnt have been so good, traders would have said its weather and pushed it aside. It was good and the s p 500 opening at fresh highs here. Weve got the tenyear yield moving higher up above 2. 81 on the yield, that marks a sixweek high and positive momentum here going into the open. I want to take a look at some of the retailers and break it down. By the ones that were good and the ones that werent so good. Foot locker beating by 82 Cents Per Share and ceo ken hicks said that 2013 growth should be repeatable in 2014. The street likes to hear that. And shares of nike higher in sympathy because many of what foot locker sels the shoes and apparel, thats nike stuff. And big lots beating on the top and bottom line but guidance below consensus for the full year and first quarter. Skull candy its a headphone maker and we dont talk about it often but they did report strongerthanexpected earnings but it wasnt all good. Sake a look at gap. Gap we know after the bell reporting very disappointing samestore sales down 7 . The street had expected up 1 . Quiksilver reporting a profit this time. Thats better than the loss it reported the same time last year. Revenues, though, fell from some currency Inflection Points there and staples getting three price cuts today. If we can skip to the ipo, want to make sure we have time for this. Im standing in front of coupons. Com which is ipoing 10. 5 million shares and the price is expected to open at 16 above the 12 to 14 range and weve got a big crowd gathering and well bring it back when things start moving. Back to you. Thank you, courtney. The jobs numbers for february coming in better than expected. 175,000 jobs added. The you ployment rate ticked up to 6. 7. Want to get the first reaction from the white house this morning. Here first on cnbcs labor secretary thomas perez. Mr. Secretary, good morning to you. Good morning. Great day here in washington. Pretty nice number in light of what we know was a pretty significant weather effect. 600,000 people couldnt get to work at some point because of the weather. I know this is a tough one, but do you have a sense as to how the revisions are going to come in later on for february . Well, i dont know what the revisions are going to say but what we do know about this report its a very resilient report despite the weather. It shows the economy continues to move in the right direction. 48 consecutive months of private sector job growth. 8. 7 million jobs. And as you correctly point out, you know, last month, there were roughly 7 Million People who worked who missed at least part of the week because of the weather. Thats a lot of folks. And so we see this continued resilience. We still have a lot of work to do and, you know, theres way too many people who are out of work and thats why were continuing to focus on infrastructure, investments and the president s budget continuing to focus on passing immigration reform, making sure we have the skills for people to compete and thats what we do here at the department of labor. So, you know, were moving in the right direction. But we have a heck of a lot more work to do. Average Hourly Earnings year over year, two two that ties for the highest rate of change for this recovery. What does that mean for the labor Market Going Forward . Does that mean were done with the Unemployment Rate going down . First of all, wages are real wages are up slightly, but way too many people are still, you know, working hard and falling behind, you know, weve seen productivity since, you know, the last since 1980 or so has gone up over 90 , real wages have gone up Something Like 3 . You know, folks are working hard and falling behind and thats why the president supports raising the minimum wage. Thats why, you know, he supports increasing investments in infrastructure. When we do these things, we can move the Unemployment Rate down even further. I mean, the formula for moving forward i think is very clear. Infrastructure investments. Passing the minimum wage. Passing immigration reform. We did those three things, youd have this Unemployment Rate down another point in a year. I have no doubt about it. Mr. Secretary, jim cramer here. Going down to the bayou this weekend, all i hear from the companies down there is please send more workers. They dont have enough workers whether it be Truck Drivers or people that can build things, welders. How do we get the people who can do that to where the jobs are . Yeah. Great question. And, you know, everywhere i go, i hear from manufacturers, for instance, were bullish about the future. We need more welders. We need more electricians. I was in San Francisco this week at an Apprenticeship Program and, do you know what, apprenticeships are tickets to the middleclass. Theres a Bright Future for people in this country who want to work with their hands and thats why the president in his budget for 2015 has a very robust investment in apprenticeships. He wants to double the number of apprenticeships in this country over the next five years. I think we can do it. And, by the way, its desperately needed. You go to wisconsin, i talked to the manufacturers there, the average age of a person in the Skilled Trades is 59 years old. Folks are getting ready to retire. I was at boeing four days ago, monday of this week, theyve got a substantial percentage of their workforce that are within five years or so of retirement. So, we need to make sure that were investing in these Skilled Trades that are a ticket to the middleclass. I met a guy monday or the other day in San Francisco whos an electrician, he calls it the Golden Ticket from willy wonka and the chocolate factory, you get a journeyman license and you are punching your ticket to the middleclass and thats what were doing here, helping people do that. You are hitting the road quite a bit, mr. Secretary. I am. I am. Im going with al roker, though, because hes helping me with the weather issue. Serviceproducing jobs, finally, it was largely temporary help and largely Government Employment. The highest number of Government Employees added since last fall. Is that the kind of growth that youre satisfied with . Well, i tell you, the Government Employment increase is interesting and important in the sense that these were jobs at a state level in education, at community colleges. And ill tell you, i Love Community colleges because thats where we are working to train the workforce of tomorrow. You still look in the aggregate over the last four years in Government Employment and its way down. Its down something, like, 500,000 jobs and its mostly in state and local government and its mostly schoolteachers. And frankly, the schools i go to, they need more teachers and more para professionals and we need those investments in those areas. So, i hope that we can continue to invest in education. The president s talking about it today. Making education more affordable. College education, making it easier to fill out the Financial Aid forms. The president s been very, very focused on that. Secretary duncans been very focused on Early Childhood because we know that when you invest in people from the time they are born, that investment pays off. And thats why the president s so focused on that. Mr. Secretary, appreciate your time as we do every jobs friday. Thanks for stopping by. Always a pleasure. Theres no truth to the rumor that weve retained al roker. Hes gainfully employed, i can tell you. Thats correct. Mr. Secretary, thanks a lot. Thats one guy who doesnt have to worry, no, about a job. Lets talk quickly about another activist situation. Cliffs natural resources, this morning or weve got casablanca nominating six directors to cliffs natural board. Cliffs natural also saying, hey, you know, why couldnt we have figured out a way to settle this . We offered you two. What im hearing theres cumulative voting here. Not that complicated a concept. But essentially means on your slate you can actually apportion the votes however many are given for all the directors to one or two. Therefore, if they were to get even 10 , 5 of the company conceivably they would have had two to begin with. Theyre going for more than that. They didnt like your ceo choice, jim, if you recall. And for its part cliffs is saying, hey, weve done a lot of things that you wanted us to. We would have given you two board seats. Couldnt we have settled this . Settlement is not happening quite as often recently in activi activism. And we look at dan loeb and offered one board seat and said, no, im fighting you. On cliffs im looking for ourve your overall view with a company under siege with a battle in its boardroom. What the activists need to do is go buy a lot of iron. One of the things that has i know that they will tell you, listen, the iron ore business is terrific. If you look at vale, some of of this is the brazilian real, its a horrendous per informer, why . Because its iron. I know iron prices have held up. But you watch copper. Copper has led iron down. Not today. Theres a lot of iron for sale. And i just dont want to be in the iron business. Thats part of the problem. Its just a crummy business. Yeah. No matter what. Nothing changes its board or Senior Management team are able to do about that . You try to do a restructuring and bring out value but in the end iron is iron. Tree is a tree and iron is iron. There you have it. What more could i say . That is deep. Youre welcome. Thank you. They should name a rest stop after me on the new jersey turnpike that kind of poetry. They are working on it. Lets get to the bond pits and Rick Santelli is at the cme group in chicago this morning. Hi, rick. Hi, carl. If you had to pick a number where stocks would do well but not terrific, i guess 175 would be it. As far as treasuries, you know, theyre doing about what one would expect, they are keeping one eye on the stock market and i think the other eye on the dollar yen. The intraday chart, the high watermark was a whisker shy, we havent closed in that region in 6 1 2 weeks. Lets go back to the relationship between the dollar yen and tenyear note yields because they really popped yesterday which in my opinion talking to traders was one of the reasons they wanted to go on this much flatter versus a little bit long and you are right. Whether you look at a comparison chart on a monthly basis or year to date basis, its obvious how tightly controlled and correlated these two charts are when you put them on the same axis. Now, if we switch gears a bit, theres a lot of talk about how great higher Interest Rates are for the banks and, of course, were ignoring, of course, the trading profits at the banks that just arent going to ever be what they were. But look at twos to tens that is steepening a little bit that usually augers for higher rates but fives to tens from the belly of the curve not as much. What that would tell me, yes, rates may go a bit higher whether we close above 275 is key but probably not going to do it in a barn burner fashion. The last couple charts, foreign exchange, look at the chart of the euros and they are hovering since the best levels in oct of 2011. Think how much you like bacon, drink, coffee, orange juice, soybeans, corn, its shown up and the highest level since october of 2012. Back to you. Thank you so much, rick. When we come back, goldmans chief economist will join us live at post nine. Well get his reaction to the jobs number. Hurting recently after its secondary priced well below the latest Closing Price and the ceo will join us live frerk off ringing the opening bell. The dow is almost exactly 100 points below its alltime closing high. Squawk on the street is coming right back. Opportunities arent always obvious. Sometimes they just drop in. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. So our business can be on at ts network for 175 a month . Yup. All 5 of you for 175. Our clients need a lot of attention. Theres unlimited talk and text. Were working deals all day. You get 10 gigabytes of data to share. What about expansion potential . Add a line, anytime, for 15 a month. Low dues, great terms. Lets close new at t mobile share value plans our best value plans ever for business. We are waiting for coupons. Com to open. Priced at 16 a share, above the range of 12 to 14 based in mountain view, california. Digital coupons, but sort of what groupon was trying to do in the old days. I know. This has been well adopted. At one point when i was 15 the first job i ever had was to stuff inserts in your sunday paper, you probably hated me for doing that, this is the digital insert. The ticker will be coup, and when it opens, well bring it to you, of course. When we come back, stop trading with jim. This is mike. His long race day starts with back pain. And a choice. Take 4 advil in a day which is 2 aleve. For all day relief. Start your engines [ male announcer ] how did edward jones become one of the biggest Financial Services companies in the country . Hey. Yours . Not anymore. Come on in. [ male announcer ] by meeting you more than halfway. Its how edward jones makes sense of investing. Time now for a friday edition of jim and stop trading. Karen short, remember that name. She is the Deutsche Bank analyst has been dead right by saying that safeway was going to get a bid. She recommended the stock at 32 on fundamentals and been dead, dead right but shes sticking with her idea that kroger will come back, the stock of kroger which is up is saying shes wrong. I dont know. Its funny, ive heard from a couple of investors who have noted this call which is that they need to do this. Yes. That they will suffer if they do not. However, theres antitrust concerns is, again, my reporting right now is that kroger is not a step back from the idea of doing it, jim, and that the cerberus deal will likely hold. Its only 150 million to break the deal which is pretty low percentagewise of the overall total and that will go up over time once it expires. Well say, kroger may hang around and buy some stuff. Kroger is a wellrun company and doesnt want to load the Balance Sheet up with debt. I felt when i ran through the Conference Call that kroger was quietly saying were not going to pay that much for anything with the success of Harris Teeter. I think karen short is fabulous and i dont want to bet against her. Theres a lot of other things on top of the 32. 50 and thats the cash. You want to do gilead . Yes. Everybody has to stay focused on the bigcap biotechs, they are the companies you buy when you think the economy is not going strong. There was a rumor that merck has a better hepc. Its at a rumor. They have one. The group is saying the economy is better. You dont need to hide in biotech anymore. That would be remarkable because its the greatest place to be. All the ipos for the biotech and you keep having them on air and Great Stories but they cant get out of their own way today. Before uf hit the road this weekend and go to the buy you, whats on mad money tonight . Weve got quintessential fast grower. Cornerstone on demand and weve got veeva. This is one of the most shorted companies in the world. Why are they shorted . Because people say, do you know what, you cant Value Companies on revenues. But they have fast growth, cornerstone on demand is one of the most impressive stories ever. These stocks should do poorly if the economys roaring, though, because people would rather be in banks for yield curve and theyd rather be in industrials. The industrials arent doing that well today. Yeah. They rallied ahead of the number. A lot of crosscurrents but i like the Revenue Growth stories. I wont back away just for right now, biotech, Revenue Growth not what the market wants. Have safe travels. Thank you. And well see you on the show from down south. Stop trading on the rig. Stop drilling. Anytime you are in a hardhat im watching. Oh, yeah and steeltoed boots. In lets get to simon hobbs. Were waiting for coupons. Com to close. And after that hell be on the show. And we are wanting to talk to the ceo of the huge breakout stocks in the last few months fireeye well talk cybersecurity on cnbc. And jan hatzius will be with us live. Some big money advice on a big day for the market. 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Save up to 10 just for combining your auto and home insurance. Call Liberty Mutual insurance at. [ thump ] to speak with an Insurance Expert and ask about all the personalized savings available for when you get married, move into a new house, or add a car to your policy. Personalized coverage and savings. All the things humans need to make our world a little less imperfect. Call. And ask about all the ways you could save. Liberty mutual insurance. Responsibility. Whats your policy . Welcome back to squawk on the street. Our roadmap begins with markets today in rally mode up about 46 after that betterthanexpected jobs number. How do we trade this record high market . An allstar panel is coming up. The pimco drama is escalating to even new heights. Bill gross fires back at el erian in a scathing interview at reuters. A big debut on the big board, coupons. Com well get the ceo this hour. And cybersecurity is a frontandcenter topic for many retailers. Target giving a boost to fireeye, well speak to one of the most successful ipos on this market. Stocks are rising along with the u. S. Dollar. Treasuries under pressure, all the reaction to a betterthanpredicted jobs report. More jobs added in the month of february than economists were looking for giving traders some comfort at that recovery is firmly on track. David kelley with Jpmorgan Funds and jack ablin joins us chief Investment Officer with bmo private bank. David, to you, a better report. And people are pointing to the higher wage growth. We finally want to see that. But does it alter your view of the labor market at all . No, really confirms our view of the labor market. All along we felt the labor market was tightening quite quickly here, because were running out of good workers and thats really whats pushing up wage growth. Its very nice to see 2. 5 growth year over year in the wage production of nonsupervisory workers but it also says the feds timetable is basically wrong here. I dont think they have time to, you know, taper all the way through the end of the year and then they wait until sometime next year for the first fund rate hike and this labor market is actually tightening up quite quickly here. Interesting, we heard the same comments from the Philadelphia Fed this week. Are you buyer of stocks and seller of fixed income, jack . Yeah, its certainly reassuring. This was our view going into 2014. Obviously we were somewhat upset by the polar vortex. But i think that this reaffirms that growth pattern, that, in fact, not only is the economy growing, but its accelerating. I would say the only negative piece of news i saw in the report was that the average workweek was down a little bit. But we are seeing salaries rise. And, you know, the the Business Leaders i talked to say that theyre having a hard time finding qualified workers. So, i do think there is labor tightness and were starting to see it in the numbers now. David, i do just want to zero in on whats happening in the bond market. Treasuries falling, yields higher. The ten year is at the highest level since back in january. What are you watching . Watching 2. 9 here . Oh, a lot higher than that eventually. And we went into this year thinking we would end up somewhere between 3. 5 to at the e 3. 5 to 4 at the end of the year. I think the inflationary has bottomed and it will move up to 2 and a 2 inflation rate justifies a bond yield above 4 and i dont think well get there this year but longterm rates are too low given the health of this economy. David, you are essentially saying that people are going to be saying the feds behind the curve i guess in the latter half of this year, right . Whats how does she by that, i mean yellen, reverse herself on that front, meaning accelerating that normalization and what does that do to the market . I think the main thing youve just got to be pragmatic. I think look at i think the key thing is looking at the numbers, watching wage growth because i dont think that janet yellen thinks that it will accelerate like this. But i think they can more or less keep to the taper pattern i think thats okay but they need to warn markets that the First Federal funds rate hike may be coming earlier in 2015 than people expect and that they may move rates up a little faster than she had talked about in some of her earlier speeches. Jack, were not getting too carried away with ourselves, are we . I appreciate its a better than expected report, but its not true to say were accelerating through at the economy. Weve come through 175, you know, the average we had for the first 11 months of 2013 was 204, so weve not exactly got a major breakout at this level, have we . No, we dont. But we do have roughly 600,000 people who werent able to attend their jobs because of the weather and, again, i hate blaming the weather its like blaming my dog for my home work, but i will say that i am starting to see evidence, for example, that businesses are starting to ramp up capital expenditures. Were starting to see new deals coming to market. Were starting to see m a activity heat up. So, i dont think we can rely exclusively on the households to drag this economy forward, but i am seeing evidence that, you know, the business sector is finally picking up the ball here. And i think just like investors who had been sidelined watching this market rise, i think a lot of worried Business Leaders were holding too much cash. Waiting for things to happen. And now they already are. Well, david, my question is more on the global scale. Obviously its the u. S. Jobs report. Its the mother of economic data, but in general why does it feel that investors here in the United States are shrugging off some of the global worries . Ukraine, not exactly resolved overnight. We saw chinas first onshore Corporate Bond dee faufault . Why is none of this spooking investors . This is the market that cried wolf. Ever since the big black swans of 9 11 and Lehman Brothers and weve been waiting for the next big shoe to drop and every time they buy into one of the disasters and its going to derail the u. S. Economy, it doesnt happen. This week is emblematic of that and everybody got scared monday but by tuesday they figured out, well, you know, ukraine probably wont really hurt the u. S. Economy. And people realize were not that vulnerable to small shocks overseas. We shouldnt get complacee plap this is a strong economy. We can statistically show the impact of weather on these numbers. We know that we have the biggest number of people saying they are working part time rather than full time because of weather since 1996 and if you adjust for that we really do have strengthening in the labor market. Its a solid economy and i think people are getting a little bit more confident about it. Just to wrap it up here for some perspective. Here we are approaching the fiveyear anniversary since the market bottomed on stocks. If you missed it. If you missed the rally and youve been spooked by the prices and the flash crashes and everything else, is it too late to get on board . No. I think theres a little toothpaste left in the tube. I think the market is somewhat expensive relative to earnings and revenues but, you know, what im hoping for is that revenues and earnings actually accelerate to catch up with current expectations. So, you know, we can trade above median levels for a while. And i do think there is room left to the upside. All right. A tremendous rally and more toothpaste in the tube. Thank you both here for joining us on jobs day. David and jack, good to see you. Thank you. This sunday marks the fifth anniversary of the market bottom, we call it the haines bottom around here for our late mark haines, s ps rallied 177 since then marking the second strongest fiveyear bull market since world war ii. Who made the most money since then . Well talk about that. The fingerpointing at pimco continues. What did bill gross just accuse his former ceo Mohamed El Erian of . Well go behind the pimco family feud next. Were still awaiting the coupons. Com. Theres the post for the ipo and well bring you the ceo first here on squawk on the street. At any minute you could be a victim of fraud. Fraud could mean lower Credit Scores and higher mortgage rates. Its a problem waiting to happen. Check your credit score, check your Credit Report at experian. Com. We know were not the center of your life, but well do our best to help you connect to what is. A lot of discussion this morning about pimco after reuters released a weekold interview with the bond giants cofounder in which bill gross accuses his departing ceo Mohamed El Erian of deliberately trying to undermine him, gross said hes sick of it and claims he has evidence that al arian as he put it wrote the pretty negative article about gross that appeared in the wall street journal on february the 24th. Guys, he even in this interview with the reuters journalist at one point accuses her of being on el erians side suggesting she, too, has been wrapped around his charming right hand finger. Its more negative news for bill gross for pimco on top of the period where theyve been experiencing outflows partly tied to fed policy and the smoothing bond markets. David . Partly tied to underperformance. Underperformance which is unusual for pimco in the last several years. Gross has always been outspoken. Its not that you lack from getting good quotes from mr. Gross, but this kind of thick is certainly a distraction if not more than that one would expect for what is one of the largest Asset Managers in the world. I can only imagine how it is playing in munich because its owned by allianz. And i think one of the problems bill gross has they have already, of course, on el erians departure put in six new deputy chief Investment Officers so its not only his decision on the investments that should be made. And they are talking about being down from 400 billion to 1 billion on the Asset Management division partly as a result of what you talk about. That was a point that bill was really trying to hammer. He called up cnbc on on street signs after the wall street journal article hit to defend himself and say there is a Management Structure in place. Im not calling all the shots. He said im not a morning person either. This is doing neither of them any good whatsoever. No. No. At some point bill should probably get himself a decent strong pr and ditch his twitter handle because didnt he come out against icahn the other day as well . Hes had some hes had some tweets that have also elicited curious reaction. All right. Well, well continue to follow that saga. Meanwhile on the markets in case you missed it, the s p 500 is up a whopping 170 since the market bottom. That means if you put 100 in the s p index you would have more than doubled your money by now. Who actually made the most money since the market bottomed . The numbers staggering. Of course, this is a story for robert frank back at hq. I assume were talking a lot more than 100. Were talking billions here, sara. Weve not seen Wealth Creation on this scale at this speed since at least 1999. And the guys who made the most from it made it from publicly traded stock mostly in tech and finance. Lets take a look. We now have a Record Number of billionaries in the u. S. Nearly 500 by forbes count and well over 500 according to other studies. Most of those are what i call bounceback billionaires these are people who fell off the list in 2009 but made it back as their stock recovered. People like real estate mogul herb simon of Simon Property group. Lots of the private equity guys who fell off and came back on. But now its the tech and finance people who are really on top. Bill gates is up by more than 36 billion since 2009. Just ingest that number. 36 billion since 2009. Most of that is actually not let me interrupt you. We do have a trade on coupons. Com. Where are we, guys . 27. 50 is where we are. On that ipo and we will, of course, have the ceo with us imminently. Thats a decent bounce there, david. I would say. Huge. Its more than a decent bounce. Thats quite a move up there. As we talked a good deal about, investors want to pay for growth. This is a company that has 50 annual Revenue Growth. Lets get over to Courtney Reagan who i think is by the post there. Courtney . We saw the open for coupons. Com at 27. 50, the offering price was 16. That was already above the 12 to 14 range about 1. 5 billion shares Goldman Sachs, bank of america and Merrill Lynch and barclays is making the mark at the post. Were up 78 . The ticker is coup and the ceo is moving over to post nine very soon, but so far very strong open for the new ipo. All right, courtney, thank you very much for that, Courtney Reagan. Its a big day here, of course, jobs friday. Markets close to a record high. Its the five anniversary of the market bottom this sunday, and its art cashins birthday. Mr. 805 as we call him here at the exchange at post nine. Happy birthday, man. Its good to see you. Thank you very much. I didnt know i was coming up here. Thats more, trust me. But markets first. This jobs number, the reaction today, santelli said it was the kind of number, the 175, where the market would probably do nothing dramatic either way. Well, i think it looks somewhat like a goldilocks number. And theyre happy. Weve seen a reaction in ten year going above 2. 8, if it gets above 2. 85 that may begin to drain on stocks a little bit. So far its not too hot, not too cold, just right. Well see how it holds. You wrote rumors of the naval activity close to the ukraine. You go along into the weekend with the rumors unsubstantiated though they may be even if the jobs number was good . Some of the rumors are true, the russians sank a hulk to block in 25 of the Ukrainian Navy such as it is and the weekend always brings events. But historically people tend to cover shorts on weekends because they dont like to be openended for two days. Art, its in those cheerleading the market to say this is such a great number that maybe were overheating here. Maybe wages are too strong. Maybe the taper has to happen more rapidly. Are you on that side of the church . Do you think were actually at an accelerated economic pace now that would warrant more rapid taper of qe . Well, you know, its tough to say with all the weather excuses being put around, but rather than looking at this number, im intrigued to see that bank lending seems to be accelerating a little bit. And should that happen, then the topic that you and i have discussed time and time again, monetary velocity may come into the factor. Way too early to tell but importantly way too early to tell. You dont see an inflation pickup at this stage with wages 2. 2 . No, give me a couple of weeks and well have a better view. The ipo, busiest year for ipos since back in 2000. Clearly everyone is taking this window, the opportunity, the record high markets to go public. Whats the demand been like . Obviously this one was a pretty strong one, coupons. Com. Well, almost all of them have seen pretty good demand. People are looking for new ideas. Were seeing the amount of available stock outside of ipos diminishing. Companies buying back their shares. The russell 5000 doesnt have 5000 stocks in it anymore. So, people are looking for new opportunities. And its been a very, very good demand here. People, though, tom mcclellan, have been charting the nasdaq 100. Keeps climbing. But the number of participants above the 100day is diminishing, decelerating, and at some point he said thats going to matter. There was an event yesterday, we see no reflection of it today, but late in the day, the health care and particularly the biometric stocks reversed sharply to the downside. They continue to be weaker today. Theyre weighing on the nasdaq. Well watch that, see if that continues over a couple of days. And your coupon looks like it almost traded at 30. Its under. In the meantime, art, back live here, we did get you this. Im going to actually, lets not guess whats inside. Ill help you open it if you dont mind. I think you can probably guess, art. This is arts birthday. Look at that, its dewars. It wont make 13 years, thats for sure. Will it make it to the closing bell . Depending on how many ice cubes i can find. Thats the european closing bell, by the way. Art, happy birthday. We love you. Have a great weekend. Glad for your passion. Thanks, art. The Cybersecurity Firm fireeye has been on an absolute tear following its ipo on speculation even that the retailer target might buy the Company Following its own massive data beareach. Well talk to the ceo of fireeye in a moment. And jan hatzius, the u. S. Economy adding 175,000 jobs, yes, 175,000 jobs, blowing everybodys expectations out of the water. The big guns will be here on cnbc. I dont know what it is ee, ie could affect sex drive, but not energy or even my mood. Thats when i talked with my doctor. He gave me some blood tests. Showed it was low t. Thats it. It was a number. 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Tell your doctor about your medical conditions and medications, especially insulin, corticosteroids, or medicines to decrease blood clotting. In a clinical study, over 80 of treated men had their t levels restored to normal. Talk to your doctor about all your symptoms. Get the blood tests. Change your number. Turn it up. Androgel 1. 62 . In todays market, a lot can happen in a second. With fidelitys guaranteed onesecond trade execution, we route your order to up to 75 Market Centers to look for the best possible price, maybe even better than you expected. Its all part of our goal to execute your trade in one second. Im derrick chan of fidelity investments. Our onesecond trade execution is one more innovative reason serious investors are choosing fidelity. Call or click to open your fidelity account today. Welcome back too street signs. You just saw the trade on coupons. Com, nearly a double, but heres another big surge, big lots is up 21 in the early trade here. The discount retailer reported a profit of 1. 45 a share, beating by a nickel and they say its loss from winding down its canadian operations was lower than expected and a very nice move to the upside. 29 for big lots. Back to you. The pressure is on target this weekend. By monday executives must hand over all the retail giants internal documents related to the massive data breach, in fact, to the House Oversight committee. But amid those growing fears of cyberattacks, investors have already won very big on an ipo of a business leading the charge against those hackers. Here in a first on cnbc interview fresh from ringing the opening bell at the Nasdaq Market site is david dewalt, the ceo of fireeye. Welcome to the show, sir. Thank you for having me, simon. Its been an amazing ride since you ipod you priced at less than 20 and on thursday you almost hit 96 a share. How does it feel . Oh, it feels great. But its also just a journey, you know, we see a tremendous amount of opportunity for the company here at fireeye. Cybersecurity has never been more important. We have some tremendous products and, you know, the markets rewarding us for our success but we think theres a lot more to go and were excited about the future. I mean, obviously viewers will notice that youre down 7 today. You have the announcement coming in to yesterday of a 1. 1 billion additional stock placing. Who is actually selling out at this stage and why . Well, theres a couple reasons for it. Number one we are raising some more capital, so 40 of this is all primary for our Balance Sheet. Gives us 400 million or 500 million more for the Balance Sheet to expand it allows us to sell some secondary shares to basically increase the float in the market and get some continuity into our stock from a buying and selling point of view. And essentially create a floor and a base for us to move forward and grow the stock from here as well. I mean, do you feel the pressure now . Obviously you spent, what was it, a billion dollars in stock and cash to buy mandiant, do uf feel the pressure to move rapidly ahead of what the hackers are doing but also to broaden the product base . You must be a guy under a huge amount of pressure. I wouldnt say im under pressure. As ceos we feel like weve got a lot of opportunity and, of course, a lot of opportunity to shareholders as well. But mandiant was a tremendous transaction for the company. We come together very well both products and services and it really creates a next generation platform for our customers and now were taking were taking mandiant international and the companys growing. So, yeah, theres stress but a lot of optimism as well. No doubt you have significant Revenue Growth, but people are wondering how long will it be until we see positive operationing margin . How long will it be, david . We put an outlook in a four to sixyear period well see profitability. But we are focused on growth, on market share and really taking advantage of the opportunities out there but we also built a harness to leverage for profitability whenever the market really drives value for us in that direction. But for now were focused on highend growth and market share. You know, david, well wait and see what happens to target on monday and whether they produce those documents or not. I appreciate that its confidential, but can you give us an idea of what the landscape is behind the scenes, within the confidential areas . Are there other retailers at the moment that have difficulty . What is the magnitude of the problem that the industry is dealing with behind the public face . Its a very large problem, simon. I think we continue to see this, you know, hundreds of companies, thousands of companies are getting breached at amazing paces and we see this every day. Target is just one example of that but, you know, most of these never come to the light of the media. And now board of directors, audit committees, ceos, cfo ms a cfos are beginning to realize they have to update their security architecture. And were at an Inflection Point where cybersecurity is getting more and more important and boards and ceos are realizing they have to do something about it or theyre going to face a lot more liability and risk. For sure. You seem to be the head of it. David thank you for joining us, david dewalt there the ceo of fireeye at the nasdaq. Thanks for having me. The chief economist at Goldman Jan Hatzius will join us after the break and talk about the jobs number and what it means for the fed and everyone else when we return. E out there. You cant always see them. But its our job to find them. The answers. The solutions. The innovations. All waiting to help us build Something Better. Something more amazing. A safer, cleaner, brighter future. At boeing, thats what building Something Better is all about. At boeing, thats what building Something Better is all about. For tapping into a wealth of experience. For access to one of the top Wealth Management firms in the country. For a team of Financial Professionals who provide customized solutions. For all of your Wealth Management and retirement goals, discover how pnc Wealth Management can help you achieve. Visit pnc. Com wealthsolutions to find out more. We saw 175,000 jobs added in february this morning. That was better than expect. Jan hatzius is the chief economist for Goldman Sachs and took his number to 125 this week along with a lot of people, jan, who were thinking the weather would be worse. Its great to see you. Good morning. Its nice to be here. What do you think of 175 . I think there was much less weather in the report than i have expected. I thought weather was going to subtract something, like, 60,000 but with construction up 15,000, that is that doesnt seem to have happened. Other than that, i think it was sort of picked. Some things were good. Other things were less good. I think the things that were good, stability in the Labor Force Participation rate, i think the Household Survey in general over the last couple of months looked a little better. What was less good i think was, you know, the hours numbers havent been so strong. But overall i dont think it really means a major change in the outcome. Really . Does it mean that march and april were in for a bigger bounce . I think if anything just from a bounce perspective, probably less so because theres less weather distortion to make up than, you know, you might have thought prior to this report. So, i think, you know, march and april should be okay and maybe even better than okay. But theres a little less room for a weather bounce. This Federal Reserve as you know is data driven. Thats how its conducting Monetary Policy. Nobody is talking about altering the plan for the 10 billion taper in march, but people are talking about the risk of a tighter labor market. Better jobs news and whether the fed is going to be behind the curve. Hearing a lot more of that. I think its natural to talk about that as the economy generally gets better and, you know, markets do well and you have seen a little bit of an acceleration in wage growth. I think its still very low and theres still a big gap between what you need to see for, you know, one thing tighter Monetary Policy and what youre seeing now, but the idea that things are moving in that direction makes perfect sense. My expectation for the fed would be they taper and they probably do adjust the Forward Guidance for the funds rate, you know, the 6. 5 unemployment threshold no longer is very meaningful and i would expect some changes to that. When do you think they might raise rates, then . Were in early 2016 for the first hike. Okay. And id say, you know, it could be as early as the middle of 2015. I think before that is quite unlikely. But it could also be as late as sometime later in i have a real problem with those Interest Rates being so far off the raising rates and this talk thats erupted today the inflationary pressures in the economy and the need to taper more rapidly. Those two things seem at odds to me. Are people overstating whats happening on the acceleration here . Yes, i think so. If i look at the inflationary pressures in the economy i see a little more wage growth than what we had a few months ago. But its unclear how much weight to put on that. These monthly numbers are pretty noisy. And especially with the drop in the workweek, its possible that there were some distortions there. Well have to see whether thats sustained. And if i look at the Price Inflation numbers, those have been extremely low. How do you feel about having to nail the colors to the mast and actually come out with a figure each month when it is so volatile . Well, its can be a humbling experience. Sorry . It can be humbling experience. But its its, like, shooting fish. I mean, its so difficult, isnt it . Shooting fish actually would make it very easy. But, yes, it is quite difficult and this month clearly was not what we expected. People are talking about velocity growth in line with what sara and simon were just asking, couple that with the 22 on earnings. Is it going to surprise us . Can it accelerate unexpectedly and take us off guard . Thats always possible. My expectation would be a gradual increase in wage growth, a gradual increase in price of inflation but from levels that are quite far below where the fed wants to see them. I think a normal rate of inflation for Price Inflation 2 thats their target. For wage growth its probably somewhere in the 3. 5 range and were still far away from that. But in a week where fisher spoke out and its fodder for the hawks, do they have something to work with. The Price Inflation numbers have generally surprised on the downside over the last few months so, you know, theres a lot of indicators out there and i think they are pointing in somewhat different directions. Why havent we seen more of a bump in the Labor Force Participation rate . 3. 6 , staying pretty steady. I mean, is that the structural argument for the labor force . How much of that is at play . I think over the last few years as a whole absolutely its been surprising how much the Labor Force Participation rate has fallen. Over the last couple of months, if anything, i think the news there has actually been a little better because you did have an increase in participation last month. And stability increased this time despite the fact that the emergency Unemployment Benefits expired which you would have expected did you see that show up anywhere . No. And i think that is a news item because you i would have thought that with the emergency benefits expiring youd see a drop in participation in the first couple of months and that hasnt happened. Finally, tax season. Do you think refunds are going to be significant to move Consumer Spending one way or the other . I dont really think its going to be a major, major factor. I do think that consumption probably has some room to bounce. The retail sales report for january was weak and very lightly weather affected. I think the same was true for the auto sales numbers, so i would expect, you know, february probably still to be weak, but march, april i think we should see a bounce. Yeah, that will be fun to watch. Have a good weekend, jan. Thanks for coming by. Thank you. Jan hatzius, Goldman Sachs. Of course, the question is did you nail the number. If you tweeted us your guess by nonfarm by 8 30 and you used the nailthenumber you could be the lucky winner of this hat. Signed by everywhere. Read them and weep. Well unveil the winner a little bit later on in the show. Stay tuned. All right, also coming up on the show, this alternative Energy Company has clients that include walmart, bmw, could tesla be next . The stock has been up on speculation that it could. Year to date its up more than 300 . The ceo of the company plug power will join us a little bit later. But right after the break were going live to kiev to get the latest situation in ukraine where Steve Sedgwick has spoken to the ukrainian Prime Minister. In a world thats changing faster than ever, we believe outshining the competition tomorrow requires challenging your Business Inside and out today. At cognizant, we help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. So our business can be on at ts network for 175 a month . Yup. All 5 of you for 175. Our clients need a lot of attention. Theres unlimited talk and text. Were working deals all day. You get 10 gigabytes of data to share. What about expansion potential . Add a line, anytime, for 15 a month. Low dues, great terms. Lets close new at t mobile share value plans our best value plans ever for business. Save you fifteen percent or more on car insurance. D Everybody Knows that. Well, did you know pinocchio was a bad motivational speaker . I look around this room and i see nothing but untapped potential. You have potential. You have. Oh boy. Geico. Fifteen minutes could save you fifteen percent or more on car insurance. With diplomatic progress between the United States and russia appearing to stall how much of a risk does the ukraine pose this weekend for investors . Cnbcs Steve Sedgwick has been speaking with the new ukrainian Prime Minister and he joins us now live from kiev. Steve, over to you. Reporter simon, thanks very much indeed. This is the second time ive had the pleasure of speaking to mr. Yatsenyuk really, the man is incredibly robust in defending his territorial integrity as he sees it. The problem is the russians arent recognizing this government in kiev and the kiev government isnt recognizing the government of the reejal assembly down in crimea and, of course, crimea is dominated by russia or russianbacked forces depending on who you believe. We understand there could be as many as 30,000 Russian Troops in the peninsula. The assembly down there is in favor of secession from ukraine and joining the russian federation, but i put it to mr. Yatsenyuk, the Prime Minister, i said, look, given the realities, given the ethnic mix and the fact that 60 of the people in the peninsula see themselves as ethnic russians, would it be better in terms of the bigger pressure to secede some authority to this referendum, to this government down there . Lets listen in to his very robust response. There will be no referendum. As it is absolutely and entirely illegitimate. No one will recognize this referendum probably except north korea, probably syria or venezuela. And i want to be very clear crimea was, is, and will be an integral part of ukraine. Noconcessions, full stop. Reporter the problem is, of course, the russians arent talking to the government here. They wont recognize the government here. They see the ousting of yanukovych in late february as unconstitutional despite the fact that the parliament here voted very heavily including members of yanukovychs party to bring in this new government and bring in president ial elections countrywide in may. I asked him about the legitimacy of his government, again, very robust response this is the government that was approved by supported by an overwhelmingly constitutional majority of the ukrainian powers. 371 votes. I can kindly i can kindly remind these kind of support in the ukrainian history. This government is represented by minorities, by different communities, by people with the different record and different reporter so, we can see there, carl, really, really tough situation where nobody nobody is talking to each other. Herein lies the problem, diplomacy has broken down and well raise it in the next hour if we can, because he said things are not as good as they want them to be but perhaps not as bad as they could be. Perhaps a tiny glimmer of hope. Getting him in front of a microphone and camera, no one had done it before today. Lets get to Rick Santelli in chicago and check in on the santelli exchange. Hey, rick. Hi, carl. I found it interesting we were talking to mr. Hatzius from goldman, smart guy, and ive seen other economists, of course, addressing todays number and some will call it much better than expected and some will call it a surprise. I call it where i would have expected it even though my call was down at 120,000 and ill tell you why and i think mr. Hatzius kind of said it 15,000 improvement in construction. But the point of this is whether economists are playing the weather microphone or theyre looking at analysts playing the stock microphone, if it doesnt all turn out well, folks, im sorry, we made a mistake. A little different than looking at your p and l sheets so make sure you do your own thinking along the way. And for the final jobs tally, all i will say regarding that and not that it hasnt been said before, there was a loss of momentum on the back half of last year and ive seen very little even with weather to dispute that as an ongoing issue to Pay Attention to. Another issue is whether you look at breakeven rates comparing, for example, a five, ten, 30year coupon to the tips counterparts you see the breakeven rates are going up, so price pressures are mounting. If you look at a crb chart, some of the highest levels youll see since the fall of 2012. If anybody out there is considered middleclass, id like to talk to you quite directly. What are you paying for eggs . What are you paying for milk . What are you paying for bacon . What are you paying for beef . What are you paying for nat gas . I guess the point of this is, there used to be a term we used to have called stagflation, i think you need to add a comm, stagcomflation. And you can call it the buzzwords these are the venue of economists that when things dont work out, they say, gee, sorry, but in reality if you are making 50 grand a year its an important aspect of your life and its making you dig deeper in your pockets and your flavor for pricing pressures versus what comes from d. C. Is definitely a very widespread indeed. The last is you find free markets and capitalism in the funniest locales. China, okay, heres a name of a company, shanghai solar Energy Scientific and technology company. Whats unique about them, they missed an Interest Payment on a bond today. A bond that is publicly traded. First time. Why am i so surprised at this . Because theyre not looking at moral hazard, the same way we did. And any companies coming in their wake are probably going to think twice. I think this was a spectacular move and even though its coming from a place where freedom isnt the same definition as you and i would look at in the dictionary of the United States of america. Hobbs, simon hobbs back to you. An important development. Thank you very much, rick. Rick santelli in chicago. Some people have almost doubled their money overnight. Coupons. Com has surged 90 from its issue price. The ceo will join us after the break. [ girl ] my mom, she makes underwater fans that are powered by the moon. She can print amazing things, right from her computer. [ whirring ] [ train whistle blows ] she makes trains that are friends with trees. My mom works at ge. Anbe a name and not a number . Tor scottrade. Ron im never alone with scottrade. I can always call or stop by my local office. Theyre nearby and ready to help. So when i have questions, i can talk to someone who knows exactly how i trade. Because i dont trade like everybody. I trade like me. Thats why im with scottrade. Announcer ranked highest in Investor Satisfaction with selfdirected services by j. D. Power and associates. Return on investment wall isnt a street. Isnt the only return im looking forward to. For some, every dollar is earned with sweat, sacrifice, courage. Which is why usaa is honored to help our members with everything from investing for retirement to saving for college. Our commitment to current and former military members and their families is without equal. Theres a freshly public coupons. Com. Check them out. Soaring. Up more than 90 at this hour. Share of the digital discount website opening at 2715. That was well above the 16 offering price. Talking here first on squawk on the street is coupons. Com president and ceo steven. Congratulations. Boy, you must have been surprised to see that shoot up like that. Thank you. Yes, we were. We spent 16 years building a great company. This is just a great way to step into the next part of our life. Its sbreing you say that. People might not know the company has been around since 1998. What took so long to go public . Were servicing an unbelievably great client base. Consumer package Good Companies and retailers. And just takes a long time to build a business that literally has been around in the off line world, you know, in this format, for 40 years and transferring all of this the coupons we all know. And transferring all of this over to a digital medium takes time. Theres coupons. Com, retail me not, groupon, a little different. What distinguishes you . Sure. Very, very different companies. Coupons. Com is focused exclusively on moving coupons that show up in your sunday newspaper for the brands that you know and love, for cereals and shampoos and things like that into a digital medium and on to mobile phones, as a matter of fact. Whereas the other companies are focused on ecommerce and discounts that you sell to consumers. We give everything away. You have more than a billion dollar valuation now. What are you going to do with the cash that you raised to continue to expand and grow the business . Were going to continue to grow our business. Weve been growing it year over year now for 16 years. Were going to continue to do a lot of the same things weve been doing. Revenues, of course you havent earned any money. That doesnt seem to bother investors today. That will be focused on that top line. Actually we were profitable both at an ebitda basis and net profit basis for q4. Sequentially quarter both has been improving over the past five quarters. I think looking forward we feel pretty good about what we built. What about top line . Are you profitable one quarter, but can you continue to post 50 kind of Revenue Growth numbers . I think if you look at history, over a longer period of time than just a year to think about how we grow in the future, were much more interested in growing in a measured conservative way year over year, to build a much bigger presence with our clients so they can work more with us. Steven, when groupon ipod it seemed like such a great idea but it was an idea that everybody copied it basically eroded their market position and valuation. Are you the same as groupon . Are you an idea that everybody will copy . No, i really dont think that we are. Over the past 16 years weve built a publisher platform of over 30,000 publisher. We have over 700 packaged good clients. Why do they stick with you . Why is it sticking . Over 2,000 brands and Retail Locations that represent over 58,000 store locations in the u. S. So why is it sticking . You know, weve got a very, very big consumer population. Weve got a terrific set of clients that continue to drive more and more promotional content through our platform. We support retailers that represent 68,000 store locations in the u. S. At this point it becomes much easier to work with us and reach everybody rather than try and work with a lot of Smaller Companies across the spectrum. Youre going public at a time where every new issue, pictures of socket puppet comes up and memories of the dotcom mania comes up. Is there pressure to maintain that over time to say technically we are making money . You know, i think that pressure is always there to continue to build a good business. We have 500 employees and offices in europe and the u. S. And people all over the u. S. The focus really is just to continue to build a good Healthy Business over the long term. Thats the pressure. And now its going to be a public business. Thanks for joining us on the big day. Steven bole, hes here with his parn parents at the New York Stock Exchange for the big day. Must be happy. I know you have 9 shares outstanding. Those are stevens parents. Coupons. Com. Good news for johnny manziel. Just t got with nike. Well talk about that after the break. If youre living with moderate to severe crohns disease, and it feels like your life revolves around your symptoms, ask your gastroenterologist about humira adalimumab. Humira has been proven to work for adults the symptoms of moderateications to severe crohns disease. In clinical studies, the majority of patients on humira saw significant symptom relief, and many achieved remission. Humira can lower your ability to fight infections, including tuberculosis. Serious, sometimes fatal events, such as infections, lymphoma, or other types of cancer, have happened. 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If you have a business idea, we have a personalized legal solution thats right for you. With easy stepbystep guidance, were here to help you turn your dream into a reality. Start your Business Today with legalzoom. Were here to help you turn your dream into a reality. For tapping into a wealth of experience. For access to one of the top Wealth Management firms in the country. For a team of Financial Professionals who provide customized solutions. For all of your Wealth Management and retirement goals, discover how pnc Wealth Management can help you achieve. Visit pnc. Com wealthsolutions to find out more. Weve been talking to johnny. Hes an amazing athlete. We think hes going to bring a lot to the professional game. Its exciting to see what hes done in College Football and well see. Time will tell. That is a little bit of a hint. Not so much time as it turned out. President and Ceo Mark Parker of nike joining us yesterday on this show obviously talking about johnny manziel. Late last night espn reported that he signed with nike. 2012 Heisman Trophy winner and first pick in the draft, in the in fact draft. I had to read up on him. Im not a huge sports fan but hes obviously a superstar and mark parker seemed pretty excited. We dont know how much money exactly the deal is worth. It was a competition, under armour reportedly wanted him. A bidding war. Yes. In the meantime, up 38 points on the dow. Just losing a little bit of ground there. It is, of course, jobs friday. Did you nail the number . If you tweeted us your guess for the nonfarm payrolls number by 8 30 this morning with the nailthenumber you could be the lucky winter of this beautiful winter hat just as it warms up as we reach spring, signed by the whole team here at squawk on the street. We will reveal the winner a little bit later on in the show so be sure to stay tuned and to that end lets welcome kelly evans to the show. Kelly, over to you. Take it away. Welcome to squawk on the street. Heres whats happened so far. February nonfarm payrolls increased by 175,000 jobs, 6. 7 is the Unemployment Rate. Would it shock me if the market took profits in this . No. Its been going up. Anticipation of something good and then we got the big enchilada good . I kind of like it. Theres the opening bell. The formula for moving forward i think is very clear. Infrastructure investments passing the minimum wage, passing immigration reform. We did those three things. We have this unemployment right now another point in the year. Will you make it 175 . I think theres much more weather in the report than i have expected. I thought weather was going to subtract Something Like 60,000. Good friday morning. Its 11 00 a. M. On the east coast, 8 00 a. M. Out west. The top story were following this morning, the u. S. Economy added 175,000 jobs in friday but one new job got more pub bliss they the rest. Facebooks beat. Well talk to her in a moment. The saga of the founder of bitcoin. Its getting stranger and the latest update is coming on that story . A few minutes. This app has only been out one day. Already one of the best new apps in the app store. Ten different countries. Were going to talk to the founder and chairman of etsy and flickr. 175,000 jobs in the month of february. Steve liesman other than that headline number what else grabbed your attention here . What han said, kelly, if he said he didnt see a lot of weather in it, what if there was a lot of weather in it and 175,000 jobs is underline straight. In other words, it would have been much higher if not nor everyone acknowledged a harsh Winter Weather month. 175 up on nonfarm payrolls. December to january just up 25,000. Unemployment rate ticking up. A good sign coming into the workforce two months in a row. Almost 700,000 people counting themselves for looking for work and a strong gain for average hourly wages. Was there weather . Look at this chart which came out which shows that parttime because of the weather spiked to 600,000. Thats ten times what sorry. Three times what it normally is in february over the last ten years. Where the jobs were education and health up 33,000, leisure and hospitality, 25,000. Temporary help, another good sign, 24,000. Construction adding workers and retail down 4,000. For the fed, this support doesnt change the game. It represents gradual, not stunning improvement. It doesnt answer much of the question about how much weakness was there for weather but suggests maybe theres underlying. It keeps them on their path of reducing bond purchases because there just isnt evidence of broader weakness in the economy right now that would necessitate any change. Carl . Steve, thank you for that. Steve liesman lack at hq wrapping up the jobs number. Big story today. On this jobs friday next guest probably has the most talked about new job in the couldnt trirks earlier this week the city of menlo park, california, unanimously approved an agreement with facebook to fund a Police Officer position for a threeyear term starting on april 1st. It makes facebook the first private company in the country to pay for a fulltime beat cop. Were joined this morning by the Police Officer selected for the position. Mary Ferguson Dickson along with the mayor of menlo park, cal. Good morning. Good morning. Good morning, carl and kelly. Mr. Mayor, its a great story. Weve been this is being called a possible blueprint for partnerships like this all around the country. How did this come about . Did you go to facebook . Did they come to you . How did this all marriage happen . You know, actually in menlo park lately weve been having conversation about how to fund our Public Safety efforts. Really how we can do more to focus on youth. There was a conversation taking place at one of our local schools on how we could go ahead and address that issue and there just happened to be a facebook representative there who heard that conversation and facebook came forward with this idea. Officer Ferguson Dickson, can you tell us a little bit about your background and how you see your role in this new role . Approximately four years ago i was tasked to come up with a Truancy Abatement Program in our city and i did and it functioned very well and was very successful. And hopefully im going to be getting up and running very similar to the way it was four years ago. And so from your point of view theres really no difference in whether facebook is funding your position or whether the public is. This is all just about you doing the job that youve been doing, correct . Correct. I think im told at least, officer, that youre going to handle neighborhood issues that relate to youth, as we said, truancy, things like that. Ive been to menlo park. It doesnt seem like a high crime area but how challenging do you think the job is going to be . I think the job is going to be pretty challenging. We have several schools in our city. That its not true truancy abatement, but stranger danger, educating parents and students regarding social media safety, bicycle safety, coming up with disaster plans for the various schools and businesses in our city as well, like i said, the truancy abatement. Im going have my hands full. Well be very busy for the next three years. Mr. Mayor carl, if i could go ahead. Yes. If i could interject. In menlo park, youve probably been to west menlo park. If you go to the east side of 101 we do have quite a bit of Public Safety issues. Very frankly, this really was facebooks second to help us solve a longstanding problem in our city. And we actually hope that this will be an etffort that will no only engage our city but palo alto as well. A lot of people have described this as winwinwin effectively. I wonder, you know, its great that facebook has the Financial Capability to do this. But to the extent people are talking about this as a model going forward, what happens during leaner times . What happens if more of, for example, municipalities police force is funded by a private sector that goes through Business Cycles . What this allows us to do is actually act fiscally prudent in menlo park and restore our reserves. Right now frankly we could, if we wanted to, probably try to fund this project but weve chosen right now to actually act prudently because we have 33 million in unfunded public pension liabilities as well as Capital Improvement projections throughout our city to deal with issues like rising sea tide and Infrastructure Projects like dark carbon internet fiber that we need to go ahead and put throughout the city. So very frankly, facebook stepping forward in high times like this allows us to keep our have ever strong so in leaner times we can continue to fund these efforts. Do you think this is the future, mr. Mayor . Are we talking down the road about entire police units, a new headquarters . Can the Public Private partnership go that far . You know, it really depends. We are taking it one step at a time. I think that its a great first step, but you know, we took this step prudently. What we did was we put in place a contract with facebook, an agreement, to really try to set forth some parameters and how we would be operating together. Facebook cant tell our officer what to do. Theyre not telling our Police Department somewhat to do. And as we move forward and really see how this works out, we will be able to really see how Ground Breaking this will be. Yeah, i do believe this is the first steps of what you will see as Public Private partnerships. I think this is acknowledgement in the Silicon Valley that really what an acknowled acknowledgement between the gap between the haves and havenots and make sure that in our area wheres people are most underserved we can go ahead and bring that tub blik safety effort to them that we otherwise might not be able to do. We talk all the time about the challenges that municipalities face all around the country. This is one interesting solution that well watch. Mr. Mayor, officer, its great to have you with us. Thanks again. Thank you. Thank you for having us. Want to check in on one of the mornings ipos. Coupons. Com off to a good start. New public digital discount website trading at 30 after pricing 12 to 14 and of course that was the initial range. Priced above that. We talked to the ceo on squawk on the street this morning. Heres what he had to say. Coupons. Com is focused exclusively on moving coupons that show up in your sunday newspaper for the brands that you know and love, for cereals and shampoos and things like that, into a digital medium and then on to mobile phones, as a matter of fact. Whereas, you know, the other companies are focused on ecommerce and discounts that you sell to consumers. We give everything away. And the Company Living up to its ticker today, carl. A bit of a coup in a tougher tape since that jobs report hit. S p is down four as people keep their eye on the tenyear 28. Highest since january 23rd. Were going to start to have that conversation again. Oh, yes, we are. Already happening in the inbox. Up next, this company can probably be described as the amazon of 3d printing. Well show you exactly how it works in just a moment. But first, Rick Santelli also keeping a close eye on that jobs number and the tenyear, rick. This close and im talking to my man jim bianco who is going to be coming up bottom of the hour. Were hearing a lot about this parttime influence within this jobs report. But looking at it is a bit of a negative. In other words, somehow we push these people down to parttime checks. What if they wouldnt have had any checks at all if it wasnt for the weather . Theres always two ways to skin a cat. Were going to try an alternative route, bottom of the hour. With all the opinions about stocks out there, 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 thats weighted based on how accurate theyve been in the past. Im Howard Spielberg of fidelity investments. The equity summary score is one more innovative reason serious investors are choosing fidelity. Call or click to open your fidelity account today. You cant always see them. But its our job to find them. The answers. The solutions. The innovations. All waiting to help us build Something Better. Something more amazing. A safer, cleaner, brighter future. At boeing, thats what building Something Better is all about. In recent months 3d printing has been scene in industries ranging from fashion to health care. Our next guest shapeways, you might have seen their work anywhere from the red carpet to the victorias secret runway. Thats going to be my first question. Peter, the ceo of shapeways, our own jon fortt joins us onset as well. Great to have you. Good morning. Good mornling. What would you have done for the victorias secret runway . We worked with victorias secret and one of our Community Members and we designed a complete outfit worn by one of the angels in the show in december. We brought actually some of the bracelets that were part of that design set. Wow. I think you brought some here. Theyre over here. Yeah. And the cool thing is that, you know, one of our Community Members working with a big brand like victorias secret you can bring your creativity to life very easily using 3d printing. Is that comfortable . You know, if its comfortable. Well, you know, about the outfit you should ask the person who wore it. In the sense of the julie its like any other jewelry you can wear. The ecommerce element here is i can be someone at home, a designer from home, right . I send your by design, you print it out and mail it back to me . Yes. What has demand been like so far . How many customers, how many orders . The cool thing about what were ordering is we are both service for everyone who has creative idea, they can make it in 3d software and upload it to the site and tell you what it costs. All the materials we offer but then if someone else might want to buy it you can open the shop. This is for free. All of a sudden you have a worldwide audience. We ship to over 100 countries and you can sell your products to them. And we have like over 400,000 people using the service. We have over 13,000 shop owners. Were enabling small entrepreneurs to build their business. The first thing i thought of was etsy or ebay, the commerce sites who let people do this. The real difference here is this is 3dr printing. Why not entintegrate it into a h bigger exchange or platform . We try too enable people to collaborate on what they see. You see a nice piece of jewelry. I want to work with the designer and have him change it slightly so it fits my needs. And to enable all of that we building our own platform was the right way forward. Heres what im trying tofy figure out. Designing something really amazing like one of those pieces there takes an amazing amount of software skill, also. Is this going to be more of a niche market for kind of customizing inry gate question signs that are going to cost a lot of money and have a smaller market or is there a way to make this a bigger mass market . Are we waiting for the point and shoot digital call a to enable that . The cool thing is, the marketplace leveraging the skills of fewer people who know how to use 3d software and we give them a platform to showcase what they can make and then anyone, you and everybody, can go to our site, see what is available, even work with the we c designers and get what they want. You dont have to have 3d Software Skills to get exactly what you want. We have built our own applications that you can use like a ring customizer or sock get set, too. We also work with an api, enable people to make applications and for iphone or ipad or anything that you would like to have. And specialized applications, it becomes easier and easier to design and make what you want. A lot of critics look at the valuations of the publicly traded 3d Printing Companies and say its excessive, its too excessive for how broad the market can get. Whats your best pushback on that . I think 3d printing has huge appeal because i think that for the products we really care about 3d printing gives us a way to make exactly what we want. I was thinking about it. Its a little bit saying that happened to software. In the beginning software was made by Big Companies, a few of them and they were publicing the software. Selling it to retail, right . Then came the internet. Thats when the internet all of a sudden anyone with a Great Software idea, whether its Software Service or piece of software you want to distribute, the internet made it possible for anyone to become a software entrepreneur. I think the same is going to happen to products. And if you think about that and people can get compelling products, Real Products they want not just what mass manufacturing is making available, i wouldnt be surprised if in the near future the nail decorations right there that you brought with us. You want to . I think carl does. Yes. I dont know if you can see them. Theyre lovely. Yeah, ill take those. I would give it a try. Obviously nowhere near done talking about this longterm. Its great to have you in. Thank you for your time. Thank you. Coming up, the u. S. Is waiting for sanctions in response to the crisis in ukraine. Well talk to ukraines new Prime Minister. Thats next. Plus, tesla isnt the only company redefining the way we power our country. Plug power is also exploring new energy technology. Look at this. The stock is popping almost 11 today. Almost 4,000 over the past year. Well tell you why in just a moment. Those Little Things still get you. Cialis tadalafil for daily use helps you be Ready Anytime the moment is right. Cialis is also the only daily ed tablet approved to treat symptoms of bph, like needing to go frequently. Tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. 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Yatsenyuk and said, look, on the ground you have a parliament who wants to see from your country and join the russian federation. You have a majority population down on that peninsula is pro russia, 60 of them call themselves ethnic russians. Plus youve got up to 30,000 on the ground. Do you have to give a bit of ground on this one, mr. Yatsenyuk . Lets listen in to what he said. There will be no referendum. It is absolutely and entirely no one will recognize this referendum, probably except north korea, probably syria or venezue venezuela. And i want to be very clear, crimea was, is, and will be an integral part of ukraine. No concessions. Full stop. There you have it. The referendum which is due on march 16th is a crimea session vote and actually mr. Yatsenyuk quoted article 73 of the ukrainian constitution who says it has to be a countrywide vote not a creama wide vote. Diplomacy was faming. The obama putin talks failed. The fact that russia wont even recognize his government, as well. He wasnt giving off with the diplomacy just yet. Lets listen. We started this process. Dont be in a hurry. So there is some progress, sir . There is no negative implications, i will say. Not as bad as we expected. Not as good as we need to do this. Im just reading a piece of copy, kelly, that says the most likely outcome is increased level of Self Governance for crimea and autonomous state. At the moment that seems an incredibly long way away, when russia isnt recognizing ukraine government. Ukraine government isnt recognizing the crimea government. The Prime Minister in such a tough spot. Thanks. Not long ago plug power stock was lange quishing 16 cents and it came dangerously close to being delisted from the nasdaq. Now its trading at 7. Thats more than 4,000 increase from the 52week low and captured the interest of Companies Like walmart, bmw, and cisco. Whats super charging plugs business and stock price . Have a look. Plug power makes Hydrogen Powered fuel cells for forklifts. To understand why their business is booming, you have to understand a little bit about forklifts. First off. In a companys busy supply chain keeping a fleet of forklifts moving means money. And every time you pull one off the line to switch out a dead battery, its costly. Plus, charging that dead battery requires tons of electricity, even more money. But fuel cells literally take seconds to charge and dont use electricity. So if a big company were to swap out its fleet of forklift batteries with fuel cells, it could save millions. And here for a cnbc exclusive interview now is plug power president and ceo andy marsh. Welcome. Thank you, kelly. What a ride youve been on. It has been quite a ride. But honestly, we always knew we were going to be successful. Weve been doing this youre still losing millions of dollars every year. But we will make money this year. This year in 2014. In 2014 we will make money. And its because weve been building this company for five or six years. We to can youed focused on a ma fuel cells could make a difference today. We put it into electronic forklift trucks. We convince customers like bmw, walmart that our units can dramatically improve the productivity of their organization. Its a large market. Theres over 6 million forklift trucks in the world. Weve only touched the small sliver. Has there been a break or make account . Walmart has been the break or make it account, carl. How many . We booked over 1700 units from walmart over one month ago. And that booking really was accumulation of work that started about four years ago. We did about two or three warehouses with walmart. They saw that it was making a difference and they were willing to make a large commitment to plug power. You do the services, too . You maintain . We do the services and we also provide and i think this is important. We developed a recurring revenue model so were providing not only the services but the Hydrogen Infrastructure and the hydrogen fuel. A little known fact. There are 14 hydrogen stations in the country. Plug power has been involved in building 45 hydrogen stations. When you think about cars and longterm, you know, this is the First Industrial vehicle were going to be successful in but we have a vision of continuing to grow. When you look at the auto market and the success both of tesla lately and helping people adopt electric vehicles and also the natural gas conversions that are getting more and more popular. Why do you think there is going to be a place for your technology . Well, its not only andy marsh who thinks theres going to be a place. People like toyota, hyundai, honda, all have large fuel cell programs. Ive made announcements theyre going to introduce fuel cells. And the big difference between fuel cells and batteries and theres certainly a place for both technologies, is fuel cells extend the run time. So batteries have limited charge. Fuel cells are like a car with a tank. Were doing a program with fedex, federal express, in california where were adding fuel cells to electric to lithium battery delivery vans. It will extend the range of those vans from 80 miles to 160 miles. Theres a gramt accommodation of fuel cells and lithium batteries for most industrial vehicles. Perhaps is a combination of those technologies in the end. We actually use both in our product. Andy marsh, thank you for shedding light into an incredible stock story. Unbelievable. Year to date action. One crazy chart. Thanks, andy. Thank you for the time. When we come back, in a deal that seems it happened forever ago. Flickr sold to yahoo for 35 million back in 05. What does the cofounder of flickr make of the 16 billion deal for whatsapp . 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Another reason why theyre lower. The other thing, of course, is that was the ecb is doing nothing to boost the european economy, a least the fed was printing. But now the fed on the strong employment report today looks like its going to pull back on the taper or continue the taper. And that in itself withdraws liquidity and another reason why were down in europe so far today. Lets look at the weekly charts. Remember the excitement we had the heavy losses on monday on the ukraine and the bounceback on tuesday. Europe has headed down net for the week overall. This is the United States still tracking higher as you can see. Big focus for the week has been telecoms. That continue today with Telecom Italian announcing its going to scrap the dividend for the First Time Ever to preserve cash under such difficulty. You will see the French Telecom plays bouncing back on the deflation in that pricing is at an end. The top gainer in europe is air france kln. The ceo talked about how they came back from the brink of bankruptcy. Gain of almost 5 on todays traffic figures. This is a chart that takes you back to the beginning of 2013. 49d gain. Look at this next chart within the airline industry. International consolidated airlines which is the owner of British Airways. That chart for the period is up 140 . The reason is the Ceo Willie Walsh and the way hes been restructuring and taking on the trade unions, both iberia and British Airways and british midland and doing deals left, right, and center. Willie walsh will be on cnbc this afternoon on street signs. Well worth a listen. My god, that guy has taken some flack over the years for the stock prices. Phenomenal. Yeah. Quite a businessman, willie. Thanks, simon. Simon hobbs. A survey offous holds shows the number of part time worker has reached an alltime high. Highest read since 78. Rick . Hi, carl. When i was a little kid my dad used to go out and buy that chevrolet impala. First thing he would do, i never really understood why, but he liked to kick the tires a little bit. Jim, nobody kicks tires anymore. Okay . Lets go to part time. So immediately after this number comes out, immediately, the parttime aspects, three times kind of the normal average in terms of a run up of part timers is immediately viewed as a big weather negative. Is that the only way to look at it . No, the assumption is the fulltime people were pushed down to parttime because of the weather. The other way to look at it is the parttime people got jobs because of the weather, shoveling snow or chopping strees because the weather was so bad they needed to employ them temporarily. If we were having a debate at a Major University could either side they could, you know, you think part timers are a good thing although temporary, or bad thing, although temporary. Both sides could possibly argue their cases as factual without necessarily negating the other possibility, correct . Yes, especially if you only got one data point after one bad week of weather. Push down, bad from full to part time or going from nothing to part time is good. Another thing i hear, okay . Five emails where the aspects of handicapping this number were done in comparison to potential jobs and how theyre aft affecty weather. I find that a huge flaw because i personally think we slow down in the second half. You havent even more info regarding why maybe that isnt a smart idea. I agree with you. The data shows were slowing down. Last year, chicago, the middle of the country. Last year, january through march, nine inches of snow. This year, six feet. It was extreme in the other direction last year as it is this year. So last year was an outlier. This year was an outlier. Dont look at last years numbers and say that was norm. That was an extreme in the other direction as well. Did you see any other aspects of this report that really stuck out in your mind . The participation rate, i think going up. The big question that everybody has is what happened to all of those people that lost their emergency Unemployment Benefits . History shows they usually drop out of the workforce. We havent seen that yet. I still think were going to see that through the ball loance of year. North carolina had an issue with that and it took three or four or five months. One of the first hurdles, the Current National program, is that theres always this notion that they may come back and russer is reruss s russer is. Something new today. Everybody emails me. Were going to keep him longer. When this interview ends in ten seconds were going to be screaming on dotcom. Streaming right now. You want to know whats behind this question mark . Youre going to have to follow me to dotcom with jim bianco. Back to you. Thats a tease, rick. Thank you very much, Rick Santelli in chicago. Up next, new app findery has been out for one day but one of the best new apps in ten different countries. Well talk to the founder who is also the chairman of etsy and cofounder of flicker. Just a moment. With all the opinions about stocks out there, 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 thats weighted based on how accurate theyve been in the past. Im Howard Spielberg of fidelity investments. The equity summary score is one more innovative reason serious investors are choosing fidelity. Call or click to open your fidelity account today. Coming up at high noon. Five years after the market bottom, is this an aging bull or raging bull . Panel of experts weigh in in just a few. Could spotify be getting closer to an ipo . Well show you what the clues are and where do you stay in sin city . The venetian or the wynn . Were having a heated debate over which stock to bet on. All straight hey head on the half, carl. See you in 20. Coming from a man who knows vegas well. Thanks. When it comes to Building Online communities the founder of todays squawk breakthrough has a few big successes under her fate. She cofounded flickr and hutch and sold to yahoo and ebay. Chairman of etsy and new startup is on based story telling. Launched yesterday and chosen by apple as a best new app in over ten countries. Katerina joins us this morning from San Francisco. Congratulations on the longest win streak in history, katerina. Good to have you with us. Thank you. So 16 months in beta. You get the blessing from apple. For those who dont yet know what findery is, describe it. So findery in a nutshell is the ability to find and leave notes around the world. Those notes are all kinds of things from Historical Information or personal stories, gossip, history, and it really tells you all about the world around you, things that you wouldnt necessarily be able to uncover or know. I just downloaded it myself to look at what it said about this area with the New York Stock Exchange and all the history. And was interested to note that some of the Real Estate Brokers have tags or listings to look at. Is this what this app is looking at . A different way to get their listings in front of a user . Typically we have a varied user base. We have people who are telling personal story, really wonderful histories, and i think the one that youre seeing is probably the corcoran group. Businesses have adopted findery, you know, with great firfer. One of the things weve seen is that, you know, real estate for example is one of the great use cases for findery. In general, though, the things were seeing on findery is more historical, more personal. We welcome all businesses on our platform as well. Right. And while i can understand that its kind of those stories and that experience that would draw people in, you need people on the platform, i guess what im wondering, the Business Model you will have listing or partnership with the local enterprises . Yeah. Thats the likely scenario for revenue plan. However, right now since we Just Launched less than 4 hours ago we are in the process of building up our member base and building up participation on the platform. We have said youve been critical, katerina, of social as a category. I think youve called it social peacocking. You argue that you dont want to be cool. What do you have against that . Oh, not social peacocking as a way of, you know, all the people that are kind of out there taking selfies and making them look good. Were trying to bring out the meaning of the place, the, you know, the soul of a place, if you will. And the stories behind the place rather than pictures of yourself or about, you know, great places that youve gone to dinner. We feel that audience is very well served at this point and were looking for something a product thats a bit wider and deeper. Coming off a week of that ellen selfy, maybe we did hit the top of the selfy market. Time will tell. You sold to yahoo . You sold to ebay. Obviously the question here is when will you sell findery or will you . I dont ever start a company with the intention of selling it. I think its sometimes a great outcome for startup. Ive been very fortunate and lucky in that these really Great Companies have an interested in acquiring the startups i have started. But i really would love findery to take it all the way. What do you make of the valuations we see right now . Its crazy. Its crazy in the valley. Specifically about whatsapp in this case. That was just that was just completely out of bounds bound. It surprised you know, weve seen a lot of really, you know, exceptional valuations, shall we say, out here in the valley but that one really raised eyebrows. Why, ckaterina . Since youve been so involved in this, familiar with valuations, familiar with strategies, why did that one raise your eyebrows . The number was just really high. It was a very, very high number. The other thing is that you often see that social media and social media properties, people can be very fickle. And move from social network to social network like that on sometimes businesses that cannot sustain over time is a remarkable thing to see. In terms of fundraising we keep trying to take the temperature of vcs, of angels. Do you still get the sense there is the appetite for new growth stories like your own . Theyre always is. I think that the valley is a great place for some inthenthuss and believers in possibility. You see the Investment Community here continuing to invest widely and heavily in startups. And including things such as social media, which, you know, many people sounded the deaf of social media. You know, years ago. And yet were still saying, you know, acquisitions such as whatsapp happening in the valley. Yeah. We have a habit if country has a habit of prolonging these deaf nails right in the face of success after success. Catarina, come back. Likewise. Take care. The founder of findery which kelly evans just downloaded and we should probably do the same thing. Im typically a late adapter here. Im trying to get ahead of it in this case now that its featured today. Lets get to dom chu and a quick market flash. Financials are the best performing financials and seeing a group of banks showing strength. Check out the regionals like keycorp. , suntrust, better jobs number means better for the economy. More traditional lenders do well as longer term rates rise and shorter term rates are held nu near zero. Back over to you. Yes, it is. People love the acquisition play talk there as well. Thank you. Coming up, the strange saga of the supposed founder of the bitcoin. Plus, weve come a long whey since the bottom of the market five years ago. Well tell you the biggest winner since then, when squawk on the street comes right back. announcer scottrade knows our clients trade and invest their own way. With scottrades smart text, i can quickly understand my charts, and spend more time trading. Their quick trade bar lets my account follow me online so i can react in realtime. Plus, my local scottrade office is there to help. Because they know i dont trade like everybody. I trade like me. Im with scottrade. announcer ranked highest in Investor Satisfaction with selfdirected services by j. D. Power and associates. Welcome back. Today the mystery surrounding the creator of bitcoin continues. After newsweek identified a man likely to be the currency founder, Satoshi Nakamoto, it ended with a car chase where the man denied having any involvement in the currency. I have nothing to do with bitcoin. Nothing to do with developing. I was just an engineer doing something else. I just believe that somebody put that fictitious name in there. IsSatoshi Nakamoto and bitcoin. Who could have seen this twist coming. I mean, okay. So hes probably not the guy, i guess. But we know that the real Satoshi Nakamoto does not want to be found. If he is the real guy this is what you would expect him to do. Its a brain teaser there. Also on the p to p foundation where the real Satoshi Nakamoto posted before this post again saying im not this dorian guy. So that seems to lend, also, to the idea that maybe this isnt the guy but then again, if he were the guy and didnt want to be found, this is what he would do. Im not sure you jump in the car with an ap reporter, though, right . There are so many fs, thens, or buts about this case. Youre not sure if you do it if you are the guy . I dont know. Would you . Would you want to get out of there but in the hands of a fellow media member. Usual suspects. Youre too young. Youre too young. I havent seen enough movies. Still though, he didnt entirely distance himself, did he . In that statement, he didnt entirely distance himself . As much as he possibly could. Its hard for me to prove that i didnt create bitcoin. Its something for someone to prove that they did. At this point were back to the detective game. Unbelievable. The chase, the whole bit. In tech, you dont get many stories like that. Jon, thanks. The s p is up 170 since the market bottomed. That means if you put 100 in the index you would have more than doubled your money by now. So who made the most money since market bottomed . The numbers, pretty staggering. Lets send it back to mark frank. The bull market has been a bull market in millionaires. We look at the number of millionaires in america there are now more than 500. Thats up more than 40 since 2009. 70s, rebound billionaires who fell off in 2009 but made it back on as their stock recovered but most of these are people in finance and tech who have gained with their stock. Lets see who gained the most. Bill gates is up by more than 36 billion since 2009. Hes now worth around 78 billion. Most of the gains are not from microsoft stock but actually from cascade, his investment company. That Company Holds stock in berkshire, coke, Canadian National railway and other publicly traded companies. Sheldon adelseven son went to 38 billion, a gain of more than 35 billion. Carl icahn, we talk about him, hes up by more than 9 billion, now worth around 23 billion. And the hedge funders, they are scoring big. Ray dallo was worth 4 billion in 2009, now hes at 14. Now, combined, this is the amazing number. Americas billionaires have seen their combined fortune double to 2 trillion. The 400 with just americans have captured 7 of household gains in stock since 2009. Guys, back to you. Unbelievable numbers. The rich, they do get richer, robert. Thats how the mathematics work. Weve been talking about this this morning, the economy adding 175,000 jobs in february. Question is, did you nail the number . The jobs report is out. February nonfarm payrolls increased by 175,000 jobs. Were you able to nail the number . If so, you will win this cnbc flapper cap signed by the entire squawk on the street gang. Find out if youre the lucky winner next on squawk on the street. Impact Life Expectancy in the u. S. , real estate in hong kong, and the optics industry in germany . At t. Rowe price, we understand the connections of a complex, global economy. Its just one reason over 75 of our mutual funds beat their 10year lipper average. T. Rowe price. Invest with confidence. Request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. My sinuses are acting up and ive got this runny nose. I better take something. Truth is, sudafed pe pressure and pain wont treat all of your symptoms. Really . Alka seltzer plus severe sinus fights your tough sinus symptoms plus your runny nose. Oh what a relief it is we are the thinkers. The job jugglers. The up allnighters. And the ones who turn ideas into action. Weve made our passions our lifes work. We strive for the moments where we can say, i did it we are entrepreneurs who started it all. With a signature. Legalzoom has helped start over 1 million businesses, turning dreamers into business owners. And were here to help start yours. Turning dreamers into business owners. Thmortgage didnt start here. It began on her vacation in europe. Someone stole her identity and opened some credit cards in her name. Checking her experian Credit Report and score allowed her to better address the issue. And move right in. Experian. Save you fifteen percent or more on car insurance. Ould yep, Everybody Knows that. Well, did you know the ancient pyramids were actually a mistake . Uhoh. Geico. Fifteen minutes could save you fifteen percent or more on car insurance. Welcome back. Were here with jon fortt at post 9 talking about the diplomacy between the ukraine, russia, and the u. S. And then icahn and ebay. Very similar in a number of ways. Mark andressen without with another letter this time taking a look at carl icahns action in 2005 when he was a chairman of xo. And he did a little self dealing it looks like. Sold some of that company to himself and pay it off some debt that xo owed him. So he got both ends of the deal. In essence saying what happened with skype is childs play, completely above board, im not quoting him, this is implied. Compared to what icahn himself did nine years ago. This seems to be counter attacks happening on multiple levels between Silicon Valley and then carl icahn here on the new york. Its one thing when youre talking about the businesses but to get into this flame throwing, i dont know. Silicon valley guys dont play. He is well staffed, not just with vcs but now with word smiths, people who know how to craft letters. So theyve got plenty of ammunition to go up against icahn. Yeah. Well see if they have the endurance to go. Carl can go for 15 rounds and more as we all know, jon. We have a winner in the nail the number contest, hit it right on the head, david morris of florida. He joins us this morning on the cnbc news line. David, good morning. Great to talk to you. Hey, carl. Im a big fan. You knew you won and you tweeted immediately, wheres my hat. I didnt. That wasnt me. Okay. Somebody did. But you must have gotten in earlier than they did. What brought you to 175 . Oh, gosh, ive been thinking the economy is going to pick up for a long time. In fact, i think Interest Rates are a a bubble. But i dont know when its going to blow. But theyre in an uptrend and well see what happens. Are you expecting you obviously had to factor in the weather like all like the entire street did, wrongly in their case. What made you think its not going to be as big a factor on ism for instance . I just got lucky, carl. I saw the adp report come out and later in the week i started lowering my numbers. But i think i was just lucky. Ive been optimistic so i was optimistic early in the week and im just lucky i got my guess in early. We got a picture of you looks like on a ski trip. If youre in florida, what youre going to do with this hat . It gets cold here. Its going to be 45 tomorrow here. So ill wear it proudly. Im going to love it. David, you dont like to play individual names, really. You tend to ride the s p. Youve already said you think rates are going up. Youve been shorting Interest Rates. Give us just your gut about is that a phenomenon for the first half of this year, back half, nek year . I think its going to i think Interest Rates are taking off noud now and i think its going to be a trend that continues until, you know, it busts the market. I mean, Interest Rates are the meat of the market. The stock market is a function of Interest Rates. David is the chief exist at goldman has cautionary words. He nailed the number several months back and hasnt exactly hit it since. We hope this isnt a top for you as well. You got to be lucky with this number, thats what i say. Kelly is going to sign the hat now, david, as were saying goodbye. Ill add my initials here. I have no idea what youre going to do with this in florida. Its on the left ear flap. I go snowskiing once a year. Ill take it with me and wear it proudly. Thats a picture of me in aspen. Ill love it. Congratulations to you. Keep playing because we have had repeat winters in the past. Okay. Im going to keep trying. David morris joining us from florida, winner of nail the number. And he did nail it with 175. Is jon fortt going to put the hat on . I dont think, no. I dont know that david would still want it after its been worn. He should be the first. I think thats a great point. Meantime, dow managing to get back some positive territory. We went negative for a while again as our winner pointed out. People are beginning to look at the tenyear. Yes. And europe closed. That is giving us more of an upward bias. You will have to stay tuned to the trading day later to see what happens. I think its a three. Lets get to Steve Liesman with breaking news. Thanks, carl. New york fed president speak in brooklyn at this hour saying a highly stance in Monetary Policy is appropriate for a considerable time to come. This is the first fed speaker in the wake of the jobs report this morning. He believes growth will be Strong Enough to lead to improvement t in the labor market and the Unemployment Rate declined over states the labor market improvement because of discouraged workers. He sees diggs discouraged workers eventually returning to the workforce. On growth, he expects sustained growth better than the 2 1 4 . But perhaps not as fast as the 3 we had in the second half of 13. Now to begin properly fast money we go to none other than scott wapner. Welcome, folks