Transcripts For CNBC Squawk Alley 20170602 : vimarsana.com

Good friday morning. Welcome to squawk alley. John fortt and i are back, joining our sara eisen once again. Good morning, guys. May nonfarm, calling for 184,000. National quick director gary cohn spoke to squawk on the stre street earlier this morning. When you look at how many people we brought back into the workforce and you look at the u6 number, the fact that its down since inauguration day, were clearly bringing people back in the job force. That said we want to continue to grow the job force and the president has talked about that. Thats why were so focused on tax reform and infrastructure. We believe we have to create a better and better job market in the United States. For more on the number, the market reaction, we are joined by jp morgans chief strategist. David, ill start with you. On a weak number like this across the board, is it a blip, speed bump in the trajectory or a signal of a bigger, more worrisome trend . The good news is that its tight as a drum. The bad news is that its as tight as a drum. I think theres more to it than just a blip. You look att auto sales. It looks like it will be the weakest since 2014. We were expecting a liftoff in growth. It looks like thats not happening. 1. 5 growth in the second quarter. The economy is slowing a bit and its a little unnerving to see the stock market do this well while the economy is slowing. Jack, how do you read the market reaction, buying bonds, stocks, selling the dollar. What does that tell you . Seems more of the same. This 2 economy thats been with us since really the financial crisis and while the administration would love to see it grow at 3 or 4 , right now theres very little thats happening to make that happen. That puts the fed in the bind. They want to raise rates slower than the rate of inflation. With inflation going over that gives them a little less wiggle room to keep real rates as negative as they are. David, how do you factor in this disconnect between a tight labor market people have jobs. Yet people dont have great jobs. Theyre not working quite as long as they would like. How does that affect the way you value this market . Were so used to a slow economy, theyre not looking to boost revenues that much. We have this atomized labor market thats holding down wages. Recognize the limitations in the u. S. Economy. Structural change to increase the labor force, investor spending. If we dont get that, people need to take advantage of International Economic markets where i think growth would be stronger. Speaking of that, david, others want to layer on top of that automation. We got back from a big tech conference arguing that robots and apps and shared economies are putting suppression on wage inflation. Is that valid or not . I think it is valid. I dont think the robots will cost us jobs but will increase the gap between not so much the rich and the poor as the educated and less educated in this economy. The less educated workers will have a tougher and tougher time competing, which theyre essentially doing, with robots and other technology in the workplace. Thats one thing that will suppress wages. Let me add i just want to add to that. If you look at President Trumps policy of trying to reduce the Corporate Tax rate, bring the stranded cash here at home, abroad back home and encourage investment, what were going to end up with, given that were going to try to create a more favorable environment here and yet do nothing to bend the cost curve on labor, especially with Health Care Costs the way they are, that is going to invite robotics and we are going to see a big investment in the u. S. But i think it could be at the cost of jobs. Overseas jobs coming back here in the form of robots. Reminds me of what cuban said a few weeks ago, everybody deals with amazon all the time. When is the last time you ran into an amazon employee, right . Absolutely. Few and far between. David to summarize it all in the last moment we have with you, if youre looking at this market, if youre a person that doesnt track the market necessarily every single day, you see that big business is very upset with the decision made by the white house to leave the paris accord. Theyve been complaining and saying it loses competitiveness, stocks close at a high. Weaker labor market report. Not enough wage growth. Stock market is at a record high. What does all this mean . Why do you continue to see this . I dont expect the stock market to be rational every day. Otherwise, we wouldnt all have a job. I do think the stock market is looking on the high side. Yields are so low. I think people need to be realistic about their assumptions. We need stronger investment spending. We need a Corporate Tax cut to bring that home and need a lower dollar. We need to think how can we export more, take advantage of modern technology . Ultimately youre either at the forefront or behind when it comes to technology. Unfortunately i tend to agree with the Business Community that stepping away from dealing with Climate Change is pushing Technology Growth backwards not forwards. Jack abelin, david kelly, thank you. St. Petersburg Economic Forum along with the Prime Minister of india and other leaders. Geoff cutmore is on the ground in st. Petersburg. Good morning, geoff. Reporter good morning, carl. Were digesting the highlights of that Panel Discussion involving, of course, nbcs megyn kelly. President putin was asked to give his opinion about donald trump, President Trump exiting the paris climate agreement. He turned round and said i am not going to judge President Trump for quitting what i describe as a good agreement. Of course, the issues about relations between the trump camp and russian officials came into the discussions. President putin denied that there had been any substantive communication about the removal of sanctions with candidate trumps team. So, that one was set aside. And then megyn kelly, of course, asked again about u. S. Election interference. Lets just play you a clip here of where president putin addresses the question of what u. S. Intelligence reports say on this. Translator given in those reports there are no specific facts, just allegations and conclusions based on allegations. Nothing more. You know, if there is something specific, concrete, we could discuss that. Of course, we come back to this key issue of where is the smoking gun . Hopefully, we will get some clear guidance as we go through the Senate House Intelligence Committee Process here. But megyn kelly came back at President Trump sorry, president putin. And the question was, well, come on. We think that there is some electronic evidence, ip addresses, hacker trails, that lead back to russia. Lets hear how president putin responded. What fingerprints or hooves prints or palm prints theyre talking about . They can be invented. There are very many specialists that can invent or fix it up. Reporter so to wrap things up, carl, i think this was vintage putin in this panel. Ultimately saying until you can show us some evidence, then there is nothing to see here. Its beholden upon the american domestic political process to show that we clearly interfered. Just one other point to leave on. He was asked about nato. President putin said as far as were concerned, nato is just an arm of u. S. Foreign policy. Back to you. Lot of headlines out of there, geoff. Thank you for that. Quick programming note, sunday night, megyn kellys exclusive with putin airs 7 00 pm eastern time on nbc. When we come back, more on the ceo backlash, following trumps decision to withdraw from the paris accord. The biggest cancer conference is under way. Stocks you need to be watching for that space. And ceo of vmware, a cnbc exclusive when we return after this. At fidelity, trades are now just 4. 95. We cut the price of trades to give investors even more value. And at 4. 95, you can trade with a clear advantage. Fidelity, where smarter investors will always be. And at 4. 95, you can trade with a clear advantage. When this guy got a flat tire in the middle of the night. Hold on dad. Liberty did what . Yeah, Liberty Mutual 24hour roadside assistance helped him to fix his flat so he could get home safely. My dad says our insurance doesnt have that. Dont worry i know what a lug wrench is, dad. Is this a lug wrench . Maybe . You can leave worry behind when liberty stands with you™. Liberty stands with you™. Liberty mutual insurance. The president facing backlash from ceos like tim cook. Bob iger dropping off of Business Advisory council in protest, a decision that commerce secretary wilbur ross says was wrong. Take a listen. I think theyre wrong because what the president is not doing is saying hes not going to try to improve climate. What he is saying is that this particular agreement does not appear was destructive of u. S. Economic growth going out into the future. I think theyre confusing the withdrawal from the agreement with the idea that hes against helping the climate. That is not the case. He is an environmentalist. He is very proenvironment. Joining us this morning, senior associate dean for leadership studies. On the phone, former gm vice chair bob watts. Good to have you both. We had george on earlier in the morning. He hasnt seen an issue in which ceos were almost uniformly opposed to the decision that he made at least in the modern era. Would you go that far . It depends what ceos youre looking at. If you look at elan musk, heads of Electronic Companies and all those companies that were poised to benefit from the massive amount of money designed to combat co2, theyre opposed. If you look at the rest of american ceos in the industrial sector, Financial Sector and so forth, youre going to find that, first of all, theyre probably conservative, which automatically means they dont believe in manmade Climate Change and, secondly, they know what a horrendously bad deal this was, which is going to cost the u. S. Trillions of dollars for little, if any, effect on co2. Meanwhile, Companies Like china didnt even have to join the accord until 2030. This deal was so bad, it stunk to high heaven. And obama thought without having it ratified by the senate and so forth. The fact that the left is going nuts is absolutely predictable. Do you say that, at least to this point, as a trump supporter or trump critic . Ive always been a trump supporter and especially liked his stand on manmade Climate Change, reduction of regulation and getting out of Bad International deals. Hes following up on his campaign promises. Im not sure that Everybody Knows this was a bad deal. Quite a few people dont feel that way. But jeff, if you are elan musk or bob iger, why are you quitting the president s Advisory Council . Is it risk with customers, culture risk inside your organization, both . Carl, this is a rare moment. Its a rare moment because its a rare moment where bob lutz is wrong and where i disagree with bob lutz. A national treasure, great industrial icon and i just cant believe im hearing what he just said. Pick up any newspaper or any phone call, ask over and see his neighbor, bill ford or mary barra. This is a west coast conspiracy, bob, what are you talking about . The Financial Committee Lloyd Blankenfein making movies . I dont think so. Bob, i dont think so. I dont know what youre talking about. Jeff immelt of ge . This is not some west coast movie conspiracy, bob. This is bill george got it right. By the way, bill george making medical devices, again, not making movies. To have this widespread agreement. There was not this widespread agreement about the Affordable Care act. I know firsthand, the business round table was split on all those other issues. In this particular case theyre as close to unanimty. State by state, every state in the nation supports this accord. Yes, even texas and west virginia. And, in fact, across the nation its 71 support it. Of course, democrats its 86 . But republicans its high in the 70s. Among conservative republicans its split evenly. This is widespread support. Widespread support particularly from the Business Community, bob. We have been tracking that. There are even reports that coal industry executives supported staying in the agreement so that at least the u. S. Could have a seat at the table and that fwloebl countries would not target u. S. Coal companyies and interests around the world, bob. You may have a lot of high visibility ceos against this. I dont know what their agenda. A businessoriented shareholder will recognize a bad deal. This was a horrible deal financially for the u. S. And i will stake my reputation, whatever it is. Apparently not as good as it was yesterday. Its still glistening. This is just a bad day. Its not enforceable, not passed by Congress Nothing enforceable. Five years or ten years from now, the climate will not have changed onetenth of a degree fahrenheit, whether the United States stayed in this accord or did not stay in this accord and the massive transfer of money out of the United States and into other countries has been stoppe stopped. Even president putin says its a good deal. Overwhelming support from the American Public and highly visible and low visible ceos in every industry. Talking about leadership. The leadership supports it. Beyond that, your opening question is the old clash song from the clashes, should i stay or should i go, you threw at me the question you threw at bill george. He had an interesting answer. After condemning the agreement he said that ceos should stay engaged and didnt challenge jeff immelt and bob i gechlt r for leaving. I reluctantly agree with bill george on that. They should stay at the table and shout out their opinion until theyre fired, until theyre asked to leave. Its important to be at that table. President trump actually maybe bob lutz and i will agree on this. He does have an open mind. That last voice in his ears does matter. He doesnt spend a lot of time studying scientific documents. The deals not perfect just like naftas not perfect. He ended up staying with it and working on revisions. We didnt just throw it out willy nilly. There has to be some revisions but this thing is not even enforceable. The costs of not being a part of it in addition to backlash from customers and other companies wanting to invest like the automakers taking their High Technology plants to china instead, its the image issues. To look like we cant recruit people. You mentioned the unfairness of this and the fact that, you s say, it wouldnt do enough to combat Climate Change. Would you be in favor of a paris accord that went further than this . Or is it more an issue of the cost to American Business regardless of whether this had a positive effect on the climate . I think it all depends whether you truly believe that co2 is a menace. Because it has been rising. But for the last ten years, the world hasnt warmed one iota. So you dont believe that . I dont believe that. Unfortunately i dont believe what this overwhelming percentage of the American Public believes. It breaks down about 50 50 everything ive read in the American Public. There are people who believe in it, people who dont. It generally breaks down along political lines that conservatives think that the old agw Climate Change thing is a huge multinational scam. And democrats all believe it. Its 50 50 only among conservatives. Most republicans support it. Most of the country support it. Overwhelmingly democrats 86 . 71 of republicans support t its only a 50 50 percent when you look at conservative republicans. Thats the 50 50. Youre talking about the climate accord. I havent seen your data. Everything ive seen, if americans really overwhelmingly supported combating co2 and combating global warming, President Trump wouldnt have won the election. I dont think he won the election on this. This was not the main reason he won. You can attribute all kinds of reasons to wins or losses but the weakness of Hillary Clintons campaign had something to do with it. Thats a turn well have to wait another day for, guys. Promise me youll come on together again. Basically is america going to be a soaring eagle or an ostrich with its head in the sand . Which is the right bird . Bob, well have to cut it short. I dont blame you. I dont blame you. Jeguys, well see you next time. Nasdaq hits another record intraday high. Amazon among those pushing the index higher. What stocks should you be watching for the next moves . Squawk is back after this. At crowne plaza we know Business Travel isnt just business. Theres this. a bit of this. Why not . Your hotel should make it easy to do all the things you do. Which is what we do. Crowne plaza. Were all business, mostly. The worlds biggest Cancer Research conference starts today. Meg tirrell will tell us what to expect. Giant meeting of cancer doctors, investors and analysts takes place in chicago, 30,000 attendees, presenting lots of data on where we stand in the fight against cancer. Good news, we have been seeing mortality rates for cancer declining over the last decade. The rate in the u. S. Is going down, due to things like changes in smoking habits and also earlier detection and better treatments. This, of course, is a gigantic market. Cost for cancer drugs, including both new cancer drugs and United States<\/a>. For more on the number, the market reaction, we are joined by jp morgans chief strategist. David, ill start with you. On a weak number like this across the board, is it a blip, speed bump in the trajectory or a signal of a bigger, more worrisome trend . The good news is that its tight as a drum. The bad news is that its as tight as a drum. I think theres more to it than just a blip. You look att auto sales. It looks like it will be the weakest since 2014. We were expecting a liftoff in growth. It looks like thats not happening. 1. 5 growth in the second quarter. The economy is slowing a bit and its a little unnerving to see the stock market do this well while the economy is slowing. Jack, how do you read the market reaction, buying bonds, stocks, selling the dollar. What does that tell you . Seems more of the same. This 2 economy thats been with us since really the financial crisis and while the administration would love to see it grow at 3 or 4 , right now theres very little thats happening to make that happen. That puts the fed in the bind. They want to raise rates slower than the rate of inflation. With inflation going over that gives them a little less wiggle room to keep real rates as negative as they are. David, how do you factor in this disconnect between a tight labor market people have jobs. Yet people dont have great jobs. Theyre not working quite as long as they would like. How does that affect the way you value this market . Were so used to a slow economy, theyre not looking to boost revenues that much. We have this atomized labor market thats holding down wages. Recognize the limitations in the u. S. Economy. Structural change to increase the labor force, investor spending. If we dont get that, people need to take advantage of International Economic<\/a> markets where i think growth would be stronger. Speaking of that, david, others want to layer on top of that automation. We got back from a big tech conference arguing that robots and apps and shared economies are putting suppression on wage inflation. Is that valid or not . I think it is valid. I dont think the robots will cost us jobs but will increase the gap between not so much the rich and the poor as the educated and less educated in this economy. The less educated workers will have a tougher and tougher time competing, which theyre essentially doing, with robots and other technology in the workplace. Thats one thing that will suppress wages. Let me add i just want to add to that. If you look at President Trump<\/a>s policy of trying to reduce the Corporate Tax<\/a> rate, bring the stranded cash here at home, abroad back home and encourage investment, what were going to end up with, given that were going to try to create a more favorable environment here and yet do nothing to bend the cost curve on labor, especially with Health Care Costs<\/a> the way they are, that is going to invite robotics and we are going to see a big investment in the u. S. But i think it could be at the cost of jobs. Overseas jobs coming back here in the form of robots. Reminds me of what cuban said a few weeks ago, everybody deals with amazon all the time. When is the last time you ran into an amazon employee, right . Absolutely. Few and far between. David to summarize it all in the last moment we have with you, if youre looking at this market, if youre a person that doesnt track the market necessarily every single day, you see that big business is very upset with the decision made by the white house to leave the paris accord. Theyve been complaining and saying it loses competitiveness, stocks close at a high. Weaker labor market report. Not enough wage growth. Stock market is at a record high. What does all this mean . Why do you continue to see this . I dont expect the stock market to be rational every day. Otherwise, we wouldnt all have a job. I do think the stock market is looking on the high side. Yields are so low. I think people need to be realistic about their assumptions. We need stronger investment spending. We need a Corporate Tax<\/a> cut to bring that home and need a lower dollar. We need to think how can we export more, take advantage of modern technology . Ultimately youre either at the forefront or behind when it comes to technology. Unfortunately i tend to agree with the Business Community<\/a> that stepping away from dealing with Climate Change<\/a> is pushing Technology Growth<\/a> backwards not forwards. Jack abelin, david kelly, thank you. St. Petersburg Economic Forum<\/a> along with the Prime Minister<\/a> of india and other leaders. Geoff cutmore is on the ground in st. Petersburg. Good morning, geoff. Reporter good morning, carl. Were digesting the highlights of that Panel Discussion<\/a> involving, of course, nbcs megyn kelly. President putin was asked to give his opinion about donald trump, President Trump<\/a> exiting the paris climate agreement. He turned round and said i am not going to judge President Trump<\/a> for quitting what i describe as a good agreement. Of course, the issues about relations between the trump camp and russian officials came into the discussions. President putin denied that there had been any substantive communication about the removal of sanctions with candidate trumps team. So, that one was set aside. And then megyn kelly, of course, asked again about u. S. Election interference. Lets just play you a clip here of where president putin addresses the question of what u. S. Intelligence reports say on this. Translator given in those reports there are no specific facts, just allegations and conclusions based on allegations. Nothing more. You know, if there is something specific, concrete, we could discuss that. Of course, we come back to this key issue of where is the smoking gun . Hopefully, we will get some clear guidance as we go through the Senate House Intelligence<\/a> Committee Process<\/a> here. But megyn kelly came back at President Trump<\/a> sorry, president putin. And the question was, well, come on. We think that there is some electronic evidence, ip addresses, hacker trails, that lead back to russia. Lets hear how president putin responded. What fingerprints or hooves prints or palm prints theyre talking about . They can be invented. There are very many specialists that can invent or fix it up. Reporter so to wrap things up, carl, i think this was vintage putin in this panel. Ultimately saying until you can show us some evidence, then there is nothing to see here. Its beholden upon the american domestic political process to show that we clearly interfered. Just one other point to leave on. He was asked about nato. President putin said as far as were concerned, nato is just an arm of u. S. Foreign policy. Back to you. Lot of headlines out of there, geoff. Thank you for that. Quick programming note, sunday night, megyn kellys exclusive with putin airs 7 00 pm eastern time on nbc. When we come back, more on the ceo backlash, following trumps decision to withdraw from the paris accord. The biggest cancer conference is under way. Stocks you need to be watching for that space. And ceo of vmware, a cnbc exclusive when we return after this. At fidelity, trades are now just 4. 95. We cut the price of trades to give investors even more value. And at 4. 95, you can trade with a clear advantage. Fidelity, where smarter investors will always be. And at 4. 95, you can trade with a clear advantage. When this guy got a flat tire in the middle of the night. Hold on dad. Liberty did what . Yeah, Liberty Mutual<\/a> 24hour roadside assistance helped him to fix his flat so he could get home safely. My dad says our insurance doesnt have that. Dont worry i know what a lug wrench is, dad. Is this a lug wrench . Maybe . You can leave worry behind when liberty stands with you\u2122. Liberty stands with you\u2122. Liberty mutual insurance. The president facing backlash from ceos like tim cook. Bob iger dropping off of Business Advisory<\/a> council in protest, a decision that commerce secretary wilbur ross says was wrong. Take a listen. I think theyre wrong because what the president is not doing is saying hes not going to try to improve climate. What he is saying is that this particular agreement does not appear was destructive of u. S. Economic growth going out into the future. I think theyre confusing the withdrawal from the agreement with the idea that hes against helping the climate. That is not the case. He is an environmentalist. He is very proenvironment. Joining us this morning, senior associate dean for leadership studies. On the phone, former gm vice chair bob watts. Good to have you both. We had george on earlier in the morning. He hasnt seen an issue in which ceos were almost uniformly opposed to the decision that he made at least in the modern era. Would you go that far . It depends what ceos youre looking at. If you look at elan musk, heads of Electronic Companies<\/a> and all those companies that were poised to benefit from the massive amount of money designed to combat co2, theyre opposed. If you look at the rest of american ceos in the industrial sector, Financial Sector<\/a> and so forth, youre going to find that, first of all, theyre probably conservative, which automatically means they dont believe in manmade Climate Change<\/a> and, secondly, they know what a horrendously bad deal this was, which is going to cost the u. S. Trillions of dollars for little, if any, effect on co2. Meanwhile, Companies Like<\/a> china didnt even have to join the accord until 2030. This deal was so bad, it stunk to high heaven. And obama thought without having it ratified by the senate and so forth. The fact that the left is going nuts is absolutely predictable. Do you say that, at least to this point, as a trump supporter or trump critic . Ive always been a trump supporter and especially liked his stand on manmade Climate Change<\/a>, reduction of regulation and getting out of Bad International<\/a> deals. Hes following up on his campaign promises. Im not sure that Everybody Knows<\/a> this was a bad deal. Quite a few people dont feel that way. But jeff, if you are elan musk or bob iger, why are you quitting the president s Advisory Council<\/a> . Is it risk with customers, culture risk inside your organization, both . Carl, this is a rare moment. Its a rare moment because its a rare moment where bob lutz is wrong and where i disagree with bob lutz. A national treasure, great industrial icon and i just cant believe im hearing what he just said. Pick up any newspaper or any phone call, ask over and see his neighbor, bill ford or mary barra. This is a west coast conspiracy, bob, what are you talking about . The Financial Committee<\/a> Lloyd Blankenfein<\/a> making movies . I dont think so. Bob, i dont think so. I dont know what youre talking about. Jeff immelt of ge . This is not some west coast movie conspiracy, bob. This is bill george got it right. By the way, bill george making medical devices, again, not making movies. To have this widespread agreement. There was not this widespread agreement about the Affordable Care<\/a> act. I know firsthand, the business round table was split on all those other issues. In this particular case theyre as close to unanimty. State by state, every state in the nation supports this accord. Yes, even texas and west virginia. And, in fact, across the nation its 71 support it. Of course, democrats its 86 . But republicans its high in the 70s. Among conservative republicans its split evenly. This is widespread support. Widespread support particularly from the Business Community<\/a>, bob. We have been tracking that. There are even reports that coal industry executives supported staying in the agreement so that at least the u. S. Could have a seat at the table and that fwloebl countries would not target u. S. Coal companyies and interests around the world, bob. You may have a lot of high visibility ceos against this. I dont know what their agenda. A businessoriented shareholder will recognize a bad deal. This was a horrible deal financially for the u. S. And i will stake my reputation, whatever it is. Apparently not as good as it was yesterday. Its still glistening. This is just a bad day. Its not enforceable, not passed by Congress Nothing<\/a> enforceable. Five years or ten years from now, the climate will not have changed onetenth of a degree fahrenheit, whether the United States<\/a> stayed in this accord or did not stay in this accord and the massive transfer of money out of the United States<\/a> and into other countries has been stoppe stopped. Even president putin says its a good deal. Overwhelming support from the American Public<\/a> and highly visible and low visible ceos in every industry. Talking about leadership. The leadership supports it. Beyond that, your opening question is the old clash song from the clashes, should i stay or should i go, you threw at me the question you threw at bill george. He had an interesting answer. After condemning the agreement he said that ceos should stay engaged and didnt challenge jeff immelt and bob i gechlt r for leaving. I reluctantly agree with bill george on that. They should stay at the table and shout out their opinion until theyre fired, until theyre asked to leave. Its important to be at that table. President trump actually maybe bob lutz and i will agree on this. He does have an open mind. That last voice in his ears does matter. He doesnt spend a lot of time studying scientific documents. The deals not perfect just like naftas not perfect. He ended up staying with it and working on revisions. We didnt just throw it out willy nilly. There has to be some revisions but this thing is not even enforceable. The costs of not being a part of it in addition to backlash from customers and other companies wanting to invest like the automakers taking their High Technology<\/a> plants to china instead, its the image issues. To look like we cant recruit people. You mentioned the unfairness of this and the fact that, you s say, it wouldnt do enough to combat Climate Change<\/a>. Would you be in favor of a paris accord that went further than this . Or is it more an issue of the cost to American Business<\/a> regardless of whether this had a positive effect on the climate . I think it all depends whether you truly believe that co2 is a menace. Because it has been rising. But for the last ten years, the world hasnt warmed one iota. So you dont believe that . I dont believe that. Unfortunately i dont believe what this overwhelming percentage of the American Public<\/a> believes. It breaks down about 50 50 everything ive read in the American Public<\/a>. There are people who believe in it, people who dont. It generally breaks down along political lines that conservatives think that the old agw Climate Change<\/a> thing is a huge multinational scam. And democrats all believe it. Its 50 50 only among conservatives. Most republicans support it. Most of the country support it. Overwhelmingly democrats 86 . 71 of republicans support t its only a 50 50 percent when you look at conservative republicans. Thats the 50 50. Youre talking about the climate accord. I havent seen your data. Everything ive seen, if americans really overwhelmingly supported combating co2 and combating global warming, President Trump<\/a> wouldnt have won the election. I dont think he won the election on this. This was not the main reason he won. You can attribute all kinds of reasons to wins or losses but the weakness of Hillary Clintons<\/a> campaign had something to do with it. Thats a turn well have to wait another day for, guys. Promise me youll come on together again. Basically is america going to be a soaring eagle or an ostrich with its head in the sand . Which is the right bird . Bob, well have to cut it short. I dont blame you. I dont blame you. Jeguys, well see you next time. Nasdaq hits another record intraday high. Amazon among those pushing the index higher. What stocks should you be watching for the next moves . Squawk is back after this. At crowne plaza we know Business Travel<\/a> isnt just business. Theres this. a bit of this. Why not . Your hotel should make it easy to do all the things you do. Which is what we do. Crowne plaza. Were all business, mostly. The worlds biggest Cancer Research<\/a> conference starts today. Meg tirrell will tell us what to expect. Giant meeting of cancer doctors, investors and analysts takes place in chicago, 30,000 attendees, presenting lots of data on where we stand in the fight against cancer. Good news, we have been seeing mortality rates for cancer declining over the last decade. The rate in the u. S. Is going down, due to things like changes in smoking habits and also earlier detection and better treatments. This, of course, is a gigantic market. Cost for cancer drugs, including both new cancer drugs and Supportive Care<\/a> was 113 billion in 2016, according to a just released report. Thats projected to grow by 20216789 th20 2021. This is huge. Price of these medicines big topic of conversation this weekend. Another topic of conversation will be immuno therapy. New, exciting class of drugs to better fight cancer. Weve been seeing very exciting progress being made against certain cancers in this space. The Biggest Companies<\/a> working here. Data sets in this conference. Bristolmyers with 89 of those. Data from merck, pfizer and incyte, next generation of immunotherapy with bristolmyers and merck. Starting earlier with celgene and roche. Other big stocks to watch on monday. Sara . Important conversations. Thank you for studying it up, meg tirrell at headquarters. Lets send it out to sue herera with an update. Sue . Thank you, sara. Trump administration asking the Supreme Court<\/a> to reinstate its ban on travelers from six predominantly muslim countries. The Administration Says<\/a> the nation would be safer if that policy is put in place. Four people were killed as hundreds of protesters took to the streets of kabul in the wake of wednesdays extremist attack that killed at least 90 people and injured more than 450 others. Protests turned violent when the demonstrators tried to get closer to the president ial palace. 36 people died in addition to the gunman during an attack on a casino in manila. Most died of suffocation as the gunman set gaming tables on fire. He fleed with 2 million in gaming chips before setting himself on fire. And Prince William<\/a> meets at the headquarters with the Greater Manchester<\/a> police. The bombi ining last week kille people. Sara, ill send it back downtown to you. Hard to believe that was only last week. I know. Sue, thank you. Lets send it back to seema mody at hq. Strong in germany, seema. Absolutely, sara. Mostly green friday for european stocks as a whole with the german dax and london ftse set to close at a record high. German dax is posting doubledigit gains so far this year, outperforming the ftse 216789 switching the conversation to currencies, the euro getting a bit of attention today, spiking to a sevenmonth high against the u. S. Dollar in reaction to that weaker than expected u. S. Jobs report. The move coming ahead of a very eventful week in europe. Ecb policymakers meeting on thursday in estonia, all focused on dragi and his vision. Investors watching to see if Prime Minister<\/a> Mays Conservative Party<\/a> can win an outright majority in parliament ahead of those crucial brexit talks. Moves in the pound have been volatile, holding on to 128 against the u. S. Dollar. We finish with our chart of the week. Rts moscow, hurt by weaker oil prices. Moscows market in the midst of a fourday losing streak. And one of the only Global Markets<\/a> in correction territory down from its 52week high in february. Back over to you, sara. Some might call that the unwind of the trump train as well. Seema, thank you. Still ahead, ed lazear weighs in on the disappointing jobs report with market intraday highs. This is a storyl and packages. This is a storyl and its also a story about people. People who rely on us every day to deliver their dreams theyre handing us more than mail theyre handing us their business and while we make more ecommerce deliveries to homes than anyone else in the country, we never forget. That your business is our business the United States<\/a> postal service. Priority you lets get to the cme group and Rick Santelli<\/a> and the santelli exchange. Good morning, rick. Hi, carl. My first friday of the month guest, ed lazear. If its employment friday, we always look forward to hearing your thoughts. What did you think of todays job report . 138,000 jobs, downward revision from 211 to 174. Average Hourly Earnings<\/a> up twotenths. Workweek 34. 4 unchanged. Right. Obviously, it wasnt a great report. I think it wasnt as bad as people made it out to be. It was bad because the expectations were high. But the number, you know, when you look at it i always like to smooth these things out. The number i look at is the last three months, 121,000 per month. If you look at that number and say, you know, where is that, thats close to what we need to keep up with the growing population. The big problem, rick and its something you and i have talked about in the past is were still down a couple million jobs from where we should be. The economy still has a long way to go in terms of a complete recovery. Ed, let me stop you one second, ed. Let me stop you one second. Sure. You said something i find fascinating. Ive heard it a lot today. We need x, which is actually a small number, to take care of the population issue. But if that comes to be, were not going to add any growth, are we . In other words, what youre looking to do is offset population issues, but that is still keeping a blind eye to the notion that status quo growth just is not enough yeah, exactly. No. I agree with you. Thats why i said thats what you would expect at the peak of the business cycle. If were kind of in stable ai stable situation where were at the peak. We dont have anywhere we would want to go, thats pretty good. Problem as i see it, we still have room for growth. As i think of it, its a couple million jobs. You mentioned earlier, i think, in an earlier segment, you were talking about the labor market being drum tight. Its drum tight in certain occupations but there are plenty of occupations where its not drum tight. If we look at people who are not college educated. Look at young men in particular, and especially those who have high school or less. Thats not a drum tight labor market. So we have a lot of room to grow there. And i think, you know, the fact that see, drum tight, ed, is the key. Every expert, did im talking really strong voices in the markets, whether its major economists with goldman sachs. To me, that sounds like an excuse, snok im not picking on any single firm or economist. The reason i see it as an excuse is i dont see any good reasons put forth for the productivity. I didnt see any of the fed models saying that all of their policies would result in less productivity, less gdp growth. Imperfect metrics as they are, tight as a drum gets them all off the hook. If growth and conditions improve, i dont think i would be shocked to see four or five, six, seven million of those 95 million marginally attached to the labor market or not in it at all or able to work come back in. Would you be shocked . No, absolutely. And i think the thing that really belies the notion that its drum tight is growth in wages. When labor market is drum tight, see high wage growth. While weve had positive wage growth, were barely above the rate of inflation. So, were not seeing significant real wage growth yet. Thats not consistent with the labor market thats drum tight. I think the experts that youre talking about are probably referring to their own industries, professional business services, health. When you talk about consulting those kinds of professions, yeah, theyre pretty drum tight. But not at the other part of the labor force. We still, as i said, have room to grow. Ed lazear, always a pleasure. Thank you for your thoughts on the may jobs report. John fortt, back to you. Thank you, rick. And straight ahead, legendary actor alan alda on binge with carl. Making water cooler tv in the new digital era. Well be right back. At fidelity, trades are now just 4. 95. We cut the price of trades to give investors even more value. And at 4. 95, you can trade with a clear advantage. Fidelity, where smarter investors will always be. Debate over bonds versus stocks and which rally is likely to crack first . Plus the stocks most likely to jump after this weeks big cancer conference up in chicago and tom lees stunning call on fang stocks. Half time report at the top of the hour, noon eastern. Well see you in about 20. Great segue, scott. Thanks. Among those gainers, largetech cap, nasdaq, another record high. Senior port fofolio dan morgan well as Portfolio Manager<\/a> walter price for elian. Arguing that fang could soar 40 in the second half of the year because its so rarely, it says, retraces its firsthalf gains. Are you anywhere near that neighborhood . Look at top stocks. Theyre in the fang. You look at google, amazon were talking about today. You know, those are the big names. Those are the stocks getting ready to hit 1,000 a share. I wouldnt be surprised if you continue to see momentum in that group Going Forward<\/a>. I mean, theres really not much to stop them at this point that i can see. I wouldnt be surprised if they did continue to do very well. What about valuation . Might that stop them . I think valuation is high for a lot of these companies. Those are priding an underlying force to the market. There was some discussion yesterday, walter, that all 11 s p sectors were up but tech was the laggard. If that were to continue, other areas of the market lye like industrials, utilities or whatever caught some leadership tailwinds what that would mean for the overall market. How likely is that . You have fang stock lead for a while and then value stocks in tech take over and lead for a while. Theres this constant rotation within the tech sector that i think is very healthy. I think one of you touched on semis recently. And the then youve got powerful platform stocks. Does one area look better than another . John, you mentioned the semis. Thats extremely attractive. Again, they are cyclical but trading at relatively low multiples when you look at historically low numbers. Apple, obviously. It doesnt seem too exorbitant. 34 doesnt seem exorbitant . The growth rate is not as big as a another stock in that group. John, those would be the areas to focus right now. Go google, apple looks good. You can go to Applied Materials<\/a> with the whole l. E. D. , display screens and so forth. There are some exciting areas that arent throwing at massive amazon 187 times on the trail right now . Yeah. Or tesla for that matter. Walter, are there specific names you would avoid because of valuation . No. I think its high on stocks like tesla, amazon. Ecommerce still only about 20 of commerce. Longterm runway for growth, its got to be amazon. So despite the high valuation, we continue to hold it. Guys, i have people worry about the economy. People worry about the economy but the economy. I think thats a nice tail wind for tech right now. How the rest of the year develops as it regards tech. For the latest binge, we sat down with alan alda, sixtime emmy winner with m. A. S. H. And west wing. To this day m. A. S. H. Is the alltime watched Season Finale<\/a> of all time. Probably would only be shown on the web because then you could do it with the real language that people would use and people really torn to pieces. We first did the First Episode<\/a> they said dont go into the operating room. Keep it funny. And we had to put a red light in the operating room so you couldnt see blood, in the First Episode<\/a>. After that, we had more power. That was a sneak peek. Well have a lot more of a conversation with alda next week, talking about horace and peak where you pay individually for episodes, whether that model could work on brands as big as lewis cks. The m. A. S. H. Finale, when there was universal experience beyond the super bowl. Absolutely. Has a new book as well, talking about communicating in this era where were all sort of speaking past one another. To develop empathy with the person youre trying to communicate with, which is actually a good topic in the era were in. Well find out if hes going to run for office . We will talk about that. When we come back, cnbc exclusive with the ceo of vmware. Dow, session highs up 21205. I f the customer app will be live monday. Can we at least analyze customer traffic . Can we push the offer online . Brian, i just had a quick question. Brian . Brian. Legacy technology can handcuff any company. But yes is here. Youre saying the new app will go live monday . yeah. With help from hpe, we can finally work the way we want to. With the right mix of hybrid it, everything computes. We cut the price of trades to give investors even more value. And at 4. 95, you can trade with a clear advantage. Fidelity, where smarter investors will always be. And at 4. 95, you can trade with a clear advantage. Our 18 year old wase army in an accident. 98. When i call usaa it was that voice asking me, is your daughter ok . Thats where i felt relief. Were the rivera family, and we will be with usaa for life. Welcome back. Reporting better than expected. Raising its full year forecast. How will the recent partnership and amazons aws affect the stock Going Forward<\/a> . Pat is the ceo and joins us in an exclusive. Pat, good to see you. Good to see jou. I think this is the first time ive seen you since barcelona. Great to be with you. Thank you. Yes, indeed, and some impressive results, though the stock is down a bit today, still up better than 50 over the past 12 months. Im curious about the atmosphere in the enterprise. Looks like its not buying a hardware like it used to. We saw that in intels results and others, but they seem to be buying from you. Can you explain how that fits into the hybrid and public cloud story were seeing unfold . Sure, john. Obviously, with our good q1 result, just reenforces the troo strategic shift weve made. Overall, what were seeing in intersurprise customers, really entering a strong market for software, services Companies Like<\/a> ourselves. I call it tech a breaking out of tech, where technology is now becoming part of every business and every business is becoming a tech business. And every part of every business becoming technology oriented. So, i think were entering a period, john, where Technology Overall<\/a> is going to have a good growth period. B obviously, theres winners and losers. Key shifts from hardware to software is part of that. From one premise to cloud, but b even on the cloud, its becoming much more balanced. The hybrid environment is saying boy, i need great on premise and cloud offerings. Thats the position that vmware can enable for our customers. I think you said on the call that beta that you have for this partnership with amazon is fully subscribed. What are the customers saying to you that are coming knocking on your door, saying we want to get in on this. What particular advantage are they looking for . Yeah, really whats happened is the coming together of the number one private cloud with the number one public cloud provider has created a seamless experience for the hybrid. The customer doesnt have to replatform their application. They can take their existing ap p ps and their management, automation, all those scripts they filled and the expertise and seamlessly move it to the amazon offering and combine that with amazon services. That coming together has really resognated with customers. Beta program was very significantly oversubscribed, so a lot of excitement as we bring it to the marketplace in the beginning of the year. So, it sounds like theyre looking to save money to implement this stuff. Is is that part of whats driving this . A lot of it is i. T. Is so oversubscribed. We have so many things in their list of things to get done, thats new applications. Business dif wrennuating capabilities. And being able to essentially take advantage of cloud, drive efficiencies of their private cloud environments, combine that with these new public clouds, really takes them from lower value assignments and applying their resources to creating new ads that change the nature of their business for the future. Thats the exciting piece b about what were doing. Is enabling them to invest in their future in a powerful way. I believe you also said that protects like their watch, which help businesses manage the devices and security in their environment are leading some of bigger deals that you are able to do and i think you did Something Like<\/a> a half a dozen deals over 10 million up from one a year earlier. Correct me where im wrong, but can you color on air watch and how thats leading . Wed say overall, the mobile cloud environment, we just covered cloud, but the mobility aspects are so critical to how businesses enabled their users as well as their employees and so, air watch, a very good quarter. Our end user computing business up over 20 , led many of our largest deals and for us, its air watch end user computing, work space one, plus the infrastructure that comes behind it. As i mentioned, one of the largest financials just made a huge decision to go with us across the whole spectrum and it is really bringing the best of cloud with best of mobility in the secure and yet super simple way. That message is having Great Success<\/a> in the marketplace. All right, apparently, enterprise still growing, at least when it comes to software. Thanks for joining us. Always, thank you so much. Wen we comb back, blue apron filing for the ipo, but challenges remain wooechlt discuss that. Dows up 75. Welcome to holiday inn thank you wait, i have something for you making every stay a special stay. Holiday inn, smiles ahead. Whether for big meetings or little getaways, member always save more at holidayinn. Com a new ipo on the horizon. Blue apron filing paperwork for an ipo on New York Stock Exchange<\/a> under the symbol aprn. It says it aims to raise 100 million or high ner the deal. Some details from the filing. Net revenue grew more than 10 between 2014 and 2016 to 795 million losses are widening, losing 52 million this quarter alone. Total losses for all of 2016, 55 million. I guess it matters whether this becomes like a Grocery Store<\/a> or something premium. A lot of discussion about their markets cost. Pay attention to that. How about this lulu versus ibm fight . Right . Lu lululemon saying on the e commerce shutdown for 20 hours, that one is is kind of crazy. Thats big, especially with ibm trying to gain cred. Over to wapner and the half. Welcome to the halftime report. Top trade this hour, bonds versus stocks and the future of the trump rally. With us for the hour today, jim, stephanie, josh brown, jon, with us onset as well is joseph. Joining us is cnbcs senior economics reporter, Steve Liesman<\/a> and Rick Santelli<\/a>. We begin this hour with the biggest question facing investors. If the economy is allegedly so good, the job market so robust, why do bond yields keep falli","publisher":{"@type":"Organization","name":"archive.org","logo":{"@type":"ImageObject","width":"800","height":"600","url":"\/\/ia600607.us.archive.org\/1\/items\/CNBC_20170602_150000_Squawk_Alley\/CNBC_20170602_150000_Squawk_Alley.thumbs\/CNBC_20170602_150000_Squawk_Alley_000001.jpg"}},"autauthor":{"@type":"Organization"},"author":{"sameAs":"archive.org","name":"archive.org"}}],"coverageEndTime":"20240628T12:35:10+00:00"}