Key read on manufacturing in the next hour. Plus, streaming wars, apple launching its tv plus platform today. It is the latest volley in the original content battle between media and tech giants. And pinterest plummeting, losing a third of its value since peaking in august. And the Growth Strategy for starbucks, Kevin Johnson will join us first on cnbc this hour. Lets get to the jobs number, october payrolls well above expectations at 128k despite the gm strike. Unemployment goes down goes up to 3. 6. Wage growth 3 from a year ago jim, hard to find things to quibble about this month im going to come back and say youre going to have a the beginning of cracks in manufacturing. There is still two economies the twothirds of the economy that is consumer is doing very well the other third is not doing well and we can i dont know how long we can go with only twothirds i think pretty long. But when you if if they shut down boeing 737 max, youll see very different numbers i just think these numbers dont have that yet. There are some places that are cutting back production. The consumer is strong i dont know why anyone would say the fed is done. The fed will be the fed will cut again if the manufacturing numbers get much worse even with job numbers that are quite strong yes yes. Unemployment rate of 3. 6. Yes youre in the camp that manufacturing is the economy output of finished goods is look at the lines the line by line manufacturing is not all gm. Look, i i am perfectly willing to admit that the u. S. Economy is consumer economy is doing well im trying to find an industrial company, other than honeywell, and maybe united technologies, to say good things so far this quarter. Thats a good assignment. Im thinking back myself. I cant find it were not including things like microsoft, hardwarerelated tech not those, no a company that exports. He had a decent quarter. Yeah. Thats called thats not as bad as feared. Absolutely. Okay. I had not heard that one but ge was nabath, not as bad as feared theyre still making windmills theyre tilting windmills. Yes, they may be. Don quixoteesque. Interesting comments here from james park about how 12 years ago we set an Audacious Company vision to make the world healthier. Right. And google is an ideal partner to advance our mission. Thats good the people have known this was potentially going to happen, the price is still above where the it is a decent premium to the current price, youre going to watch that stock given the 735 in cash move up a good deal. It is about ip, right . Thats what this is about. Intellectual property portfolio. 2 billion and thats up significantly from where the stock was prior to the first reports that google is interested. Why couldnt they close this ahead of them . I think the area of google that people are alphabet people are concerned about is when are we going to see something healthcare when and the answer is i think is this it. This is a competitor directly this company, i would say, was made, some would say obsolete by the apple watch. It is kind of interesting alphabet teams up with what some people think is a not a primary maybe second rate, second tier company, fitbit. I used to have james park on all the time i decided, if you miss your quarter every single time, it begins to be, lets say, there is no draft choice when you tank. We remember when this was a hot stock. Hot 27 yeah. Im not kidding i dont mean to be too negative. But they did not care about what the street thought of them they said were in the Health Care Company of the future there are lots of companies. You get a discount, fitbit and insurance. This is good this is going to be varly never came anywhere near the early highs. Giant short squeeze the whole time this is good james park has been making some money for people congratulations. But i now need we now need to see varly, their healthcare, moon, the other bets, the moon shots. We should point out 2 billion for a company like three days worth of cash flow. Like beatz for apple. It is not a large amount of cash. For the people who follow who watch our shows, fitbit has been a stock i get called on every week. Is that true . It is five they love 5, 6 stocks. Alphabet were to split 1,000 times, they would love alphabet. Still halted. When it isnt, it will show itself. Think there are other bidders . I have no idea. I have not focused on this for one moment thats wow, okay so there you go. There is other things that have been taking up my time. I would have said, jim, im going to do some work and come back no. It has to have another zero. Like a casual friday mind going. My mind is on casual mode. Nobody is going to go up against google really why couldnt you have said that the first time . There youre welcome. It gives a chance with apple in the watch space and apple is a big story today because theyre upping the ante in the streaming wars tv plus now available, launching in over 100 countries and territories. 4. 99 a month featuring a lineup of original shows, movies and documentaries. Netflix the irishman, with its 160 million budget. Man on my block i did everything i could to try to sneak in. I kept walking behind it. Did i make you young . I went to remember they used under first giants stadium, the one when the giants were a good team. The meadowlands, yes. Before they became the bad team it was hoffa karma man on my street, going like this every time, get out of here, please stop it good discussion on squawk with matt blank of showtime that apple, unlike rivals, is not trying to resuscitate a legacy content library. That gives them a chance to try some new things, piece out this morning saying maybe theyre going to put their toe in the water, a sense of what to buy down the road. I asked tim directly about it tim cook, the ceo. Correct and it was i of course blundered right into it, would you like to how would you like to buy, maybe a studio you want to buy. No were not a catalog company, jim. Were not buying a catalog were going to develop our own programming. Going to take a while, as it has for netflix, as it has for amazon, they have done it. And certainly possible for apple to do the same and to the point matt blank was making, theyre not defending a legacy business that is changing dramatically so it is not like disney where they obviously mr. Iger felt we have to go hard into direct to consumer or like warner media. Which is now unveiled hbo max a couple of days ago and is obviously defending against the increase of cord cutting we talk so often about millennials eat spam, they cant afford that, they eat velveeta. John stankey, ceo of warner media, spoke about this on wednesday morning from the back lot at warner bros the price certainly is a key contention, but stankey also did talk about in some ways you can connect it to apple. The connection between the content and other offerings from these companies. Take a listen. As we go forward on this, people arent going to just buy content for content sake theyre going to buy content because it is associated with other products and services. Whether it is amazon who chooses to offer marketplace incentives to have video, or it is at t that chooses to put great value with paid tv or connectivity or Broadband Associated with it. You can say the same about what happen apple is thinking. Theyre not defending a legacy business at the same time, as i pointed out, there is not a lot of there there yet. It is not defending legacy business as the apple thing. If you look at the credit card, it is all about not defending a legacy business. They love green field. And they have a longer term view i like what theyre doing because theyre trying to reinvent theyre not just trying to buy the paramount theyre not trying to buy the paramount studio jack ryan, not doing that by the way, david, one of the great things about stocks, i learned, and this really plays but viacom, they stop at zero. You are just brutal thats why he needs to get in there. It is now venezuela. Not viacom. 16 million bucks for south park. For five years. Not accrues to viacom it is a chimney, you put money in have you seen this stock new lows, multiyear lows. When this deal combines, when this combines cant happen quickly enough for them outperform, low synergy numbers which seem to disturb people, not to mention the low cash flow prognostications that were in the it is not doing that badly. No. Why doesnt it go higher . Will you to that thing you did with discovery you got it from 18 go see malone go see malone and get that stock from 21 to 30. Would you do that for me you did it for discovery do it again. Do it again. Ill put my word out. Im happy to talk to early december, they combine the stock. There are a lot of questions and concerns about that business as you know. Steel mill . No, i know. Whether they can keep the nfl, how much it is going to cost them. I asked tim cook about sports they could own the s. E. C. , they could own you can theyre not going to do it. Theyre not it is interesting because hbo max, they said in their presentation, and stankey made clear in our interview as well, will have will go years out, there will be live so thats news and sports. Thats good meanwhile, frank halota did a nice piece he added the cost of subscribing to apple, disney plus, hulu, netflix, all of those, less than a traditional cable bill. Yes, i have the fios skinny bundle i get a lot of stuff on that. Do you . Yeah, i do. I got a lot of them too. Hulu i dont know i guess my kids like the catalog on hulu, right snl for now. My wife watches hulu. Ill tell you other things she watches. Say again we all watch all this stuff who wants to the question about price is a key one. 71 bucks broadband connection as well, thats 60 bucks there, whatever the number may be because youre no longer taking video with it. It does add up. It is their largest other than the rent, it is the millennials largest thing because they spend so many hours working on it, watching. Needhams laura martin says if netflix doesnt cut prices next year, they lose 10 million subs. Wow real belief theyre going to have to go to some kind of ad supported i cant believe it though. They claim theyre in the goigo going not going to. Peacock, of course, owned by nbc, which will roll out your apple bill just keeps going higher and higher and higher and, remember, they send that to you at 3 20 a. M. Think about the apple care, apple backup, apple credit card, im like apple, apple, apple that adds up thats why there has been some talk about apple offering their bundle when you buy. Which would be really good i pay apple a ton. I pay comcast, fios, the charter thing, altese, i pay them. In the metropolitan area. I pay picasso, i pay altese mine was 1500 last month. 1500 how many wireless. I got a family plan like the like the waltons. Wow i know. Fitbit is open for trade. Again, the 2. 1 billion, 735 theyre not giving us any time in 2020 reflects badly why this is all they can come up with you dont think theyre done. I think that my hope is that when you go over the ark of that call, of the alphabet call, you get to the other bet section and it seems like they just lose a billion every it is this may be the way a lot of people in the healthcare business over there are not that happy. There is two different healthcare units they havent melded them maybe park stays with it how about that thats a good question. Is it i dont know, yeah. How about that . Wouldnt that be something . Maybe he runs it hes a very efficient guy. Humorless, maybe the most humorless person i ever interviewed. Whats the matter . Thats all right. I dont like humorless people no offense to them hope they want elon musk . Hilarious. Have to be a little funny. Parks, never a serious guy. James park 28 million active users. This is when you remember what tim cook says, my legacy will be healthcare the numbers for when you walk to watch companies, their business is down 50 because of apple. So this is alphabets first going up against tim cook. He does say he couldnt be more excited for what lies ahead. His quote, we dont know the answer. Hes never excited about anything by the way, went public at 20 so youre looking at a discount of more than 16 . Suboptimal situation. When we come back, well talk about starbucks today, outperforming the s p so far this year. Up more than 30 ceo Kevin Johnson will tell us how the companys Digital Strategy is sparking sales growth in the u. S. And china after earnings earlier in the week another look at the premarket. Jobs number, 128k, well above the estimates of 90k and revisions were good. Features futures reflecting that. Were back in a minute for farmers here, this is our lifes work. But when a recall happens, perfectly good food goes to waste. Now, weve got away around that. Looks good. Were on target. Blockchain on the ibm cloud helps pinpoint a problem anywhere from farm to shelf. Its used by some of the biggest retailers everywhere. A nice wedge. So more food ends up on your table, is that daddys lettuce . Yeah. And less food goes to waste. By the way, shes the it wasnext mozart. G day. And less food goes to waste. As usual we were behind schedule. But sophies enthusiasm cannot be dampened. Not even by a runaway donut. We powered through it in our toyota prius. Because a stars got to shine, no matter what. Its unbelievable what you can do in the prius. Toyota lets go places. What a morning in the bond pits, jobs number and ism on the way. To rick santelli. It is going to be so fascinating, carl. Obviously thatjobs number even gm just started was really solid. Couple of things we didnt even hit on there was a subtle but very important positive revision year over year earnings last month we thought there were 2. 9, they moved to 3 . Even that onetenth, thats a positive, 95,000 jobs over the last couple of months revised to the upside how did it all turn out . Lets look at some one week charts look at twoyear note yield. On the right side, of course, look at that volatility. Were not regaining all the yield increase from the positive number but most of it and carl is right, the ism is the second punch here well have to see if it is a good one or bad one. One week of tens, up one on the day, down 10 on the week 2s down seven on the week. There is some of your flattening what is interesting, look at 10s to 2s for one week basically were trading a quarter of the range like float. 20, 15, were bouncing back and forth. Virtually, what, two or three on the fed met at its last meeting prior to this. The point is, yesterday and the day before we were flattening with yields moving down, which means prices moving up well call that a bull flattener. Today, it is exact opposite, and were flattening on the bear camp as rates move higher and face value is moving lower but at the end result, the fed most likely didnt expect this number and if ism doesnt go poorly, i would see a steepening as long maturity yield should move higher more aggressively. One week of bunds. The interesting thing about bunds is that we spent some time right around the minus high 30s. What a huge difference from their all time low yield close at minus 71. Some giveback there, but today is the First Official day, of course, of Christine Lagarde and things are going to be changing. Finally, one week of the dollar index, october was unkind to the dollar index it is trying to take a stand here, though the positive numbers are small. Carl, jim, david, back to you. All right, rick, well see you in 40 minutes for ism. We will get cramers mad dash, count down to the opening bell lots to talk about with starbucks Kevin Johnson, first on cnbc interview in a few moments. Futures look good on this friday dont go anywhere. Is the monolithic view of emerging markets obsolete . At pgim, we see alpha in the trends driving specific sectors of outperformance. Where a rising middle class powers a booming auto industry. A leap into the digital era draws youthful populations to mobile banking and ecommerce. Trade and travel surge between emerging markets. Every day, our 1,100 investment professionals around the world search out opportunities for alpha. Partner with pgim, the Global Investment management businesses of prudential. All right, fitbit getting bought by google this morning. Jim mentioned the consumer interest in that name. A look at one week chart, 67 gain opening bell is next and our interview with starbucks Kevin Johnson, just minutes away the biggest challenge of. 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There are things we would change about work. And there are things we wouldnt. When work is worth it. Work is worth it. Work can be closer to home. Pay more. Make us proud. Careerbuilder. Work can work. Find your work at careerbuilder. Com we got two minutes or so before we get to opening bell. Last trading session of the week, by the way if you like to keep track of the days of the week and this is the last mad dash. What do we got i said the other day that grubhub has been the biggest disaster in the quarter. Well, ariftia networks is going to rival that, anet. Theyre talking directly about a major cause in spending by a cloud titan, jpmorgan says it is facebook the confusion is this is the only company that has seen a major pause in cloud spending. We didnt see it in if you go over and say amd will go up because lisa sue is doing so well they didnt see it. What does arista do make white boxes inside data centers. Thank you what happens here is this call was overvalued in call it was a call where people say i dont see it. Were not seeing a slowdown in spending in other cloud providers. Look, she is the biggest. And she is very good im not trying to minimize theyre a bad company. Their a great company. They have been one of the great, great performers but without a doubt, this Conference Call made people feel that something is very wrong. Could they is it because of it being an early sign, would they in some way see the demand slowing prior to other providers i think she would say that, that, look out for 2020 spending i dont want to put words in her mouth. Shes done such a fabulous job but this was a very jarring call k