Stretches you. But really it is about weight. If youre in perfect shape like andrew, you get away with it i still need to lose about 7 pounds i am being honest. Full transparency. This tailor pulls it in. Lifts and separates. Sounds like stuff i wear. Lets look at equity futures. Best week for the dow since may. Ninth consecutive gain in a row closing another new high friday. Lets check out what happened overnight in asia. Friday after you saw better than expected jobs numbers, saw a pop of the stock market here, carried out in what we saw with the nikkei which closed just over 100 points. Hang seng was up, as was shanghai composite europe, early trading, at least now looks like things are relatively flat for most of the major indexes. Big decliner dax down crude oil was flat, closing below 50, within striking distance this morning, decline of 1. 5 . Natural gas is slightly higher this morning, natural gas saw the worst week since june, down more than 5 . Get you caught up on big stories this morning north korea is responding to u. N. Sanctions the countrys official news agency saying sanctions infringe on sovereignty and the country vowed to take righteous action saturday, you know Council Adopted a resolution that aims to slash north koreas annual export revenue by a third. It was drafted by the United States, would ban the export of various metal, coal, seafood more coming up on north korea in a minute. And other big news apple supplier foxconn making another big dent on america. South China Morning post says theyll open a multi million facility in michigan focused on autonomous vehicles. No details on the investment or amount news comes less than a week after foxconn announced they would open a 10 million plant in wisconsin worth noting michigan and wisconsin flipped for trump in 2016 when the wisconsin deal was made, people did the math, how much wisconsin was giving away in terms of subsidies to bring foxconn here talking about left, right divide, where you stand on things like that i was going to say, you can say that with amazon or anybody. They were looking at this, looked at it, said theyre giving 15,000 a worker on an annual basis and you have to make decision about whether thats a good idea. That goes back into the economy, and someone else is served with the dry cleaner, restaurant. All good. Mr. Wonderful. This is wonderful. And price of bitcoin surging over the weekend, topping 3,000 and climbing sec wont put it through as etf, i cant short it, im not buying. Completely speculative. Obviously it climbed and has gone up, but youre not making investment when you dont know anything. My son pointed out to me this is the biggest miss in my life could have bought it at 75. I dont know what it is in terms of being unable to be if we could create an etf, there would be price discovery, some could go short, some long, i would know what the true value is. Cant find it. The price more than tripled in value for the year. The Software Upgrade last weekend, expected to cause volatility, was relatively uneventful kevin . Yeah. On this weeks agenda on wall street, look for june Consumer Credit numbers at 3 00 p. M. Eastern time wednesday, first look at Second Quarter productivity and labor costs. Thursday, jobless claims, july ppi. Friday, july Consumer Price index. On the earnings front, about 35 companies in the s p 500 reporting results with retail and media front and center among names to watch, cbs, marriott, michael kors, disney, 21st century fox, kohls, macys talk about stocks to watch shares of Rockwell Collins jumping late friday after reports that United Technologies made an offer to buy the company. Rockwell is reviewing the bid. Reports say theres no certainty it will engage in talks with united tech. And fresenius paying 30 a share for the company which makes products to treat kidney failure. Shares of toshiba jump nearly 6 . Company auditor signing off on Financial Results after dispute over when they should have recorded losses from the westinghouse unit. The move could increase chances theyre delisted from tokyo stock exchange. Lets get to washington. President trump taking a working vacation in new jersey thats where we find kayla, shes down the street. Reporter good morning, andrew President Trump is taking two weeks of a working vacation in bed minister while the west wing undergoes renovation public schedule for the president is empty Biggest Development is nearby in new york where the u. N. Security Council Adopted unanimous resolutions on north korea a relatively small number to us. The president tweeting after a phone call with president moon of south korea that the president was happy and impressed by the vote which included china and russia, two nations that previously balked at the sanctions policy. Secretary of state Rex Tillerson for his part tried to signal the diplomatic channel would still be open. North korea can give us that theyre prepared to talk to stop the missile launches we have not had an extended period of time where they have not taken some type of provocative action by launching Ballistic Missiles u. N. Ambassador nikki haley who was instrumental in sanctions is among names mentioned in a New York Times report about socalled shadow campaigns emerging should trump decide not to run in 2020. The times cites conversations with 75 republican officials and donors, naming senators ben sasse and tom cotton, john kasich, and Vice President mike pence whose packed public schedule directly contrasts with that of President Trump. The Vice President forcefully denying the report, calling it disgraceful and offensive, saying, quote, whatever fake news may come our way, my entire team will focus all efforts to advance the president s agenda anything that says otherwise is laughable and absurd back to you. Good to see you. Working vacation i like to do a working vacation. Dont always get credit for working vacation, especially on tv separately, the president of russia taking Vacation Time, posed for action shots as he likes to do throughout his vacation last week he fished, kayaked, snorkeled through siberia. Cold waters didnt keep him from going for a swim accompanied part of the trip by the defense minister no shirtless photos of mr. Trumps working vacation just yet. A broader look at the markets and economy. Joining us, jim osullivan, chief u. S. Economist for High Frequency economics and david leibowicz for jpmorgan Asset Management saw better jobs numbers friday does that change how youre assessing the economy . Obviously the numbers on friday were stronger than expected numbers bounce around a lot. When you average it out, net is the same, pretty strong. Getting basically 180,000 a month on payroll, 1. 5 annual rate labor force growing 1 a year. It is a recipe for the Unemployment Rate to continue to fall people have been surprised that numbers have held in this high for so long as the Unemployment Rate continues to decline. Should be looking at closer to 150,000 or less jobs why isnt it slowing down . The backdrop is very accommodating to financial conditions generally, not just the fed but equity markets this set of financial conditions is supportive of arguably above trend growth in terms of unemployment growth. It is above Labor Force GrowthUnemployment Rate is falling i dont see change to that continued to see markets setting highs on almost a daily basis. The key thing investors are watching is inflation, that seems to be whats moving the dial for the fed the most. Were still seeing relatively subdued wage growth, relatively healthy payroll growth supports the idea of goldilocks economy, growth looks moderate, inflation remains low, and as wages remained subdued, margins continued to expand. It is the profit story giving investors confidence that the market can keep it higher. Kevin, how do you feel about the economy of the markets thing i look at is Wage Inflation, that could me would trigger the fed, futures markets at 7 , do you agree for that hike in december our view is the fed will begin Balance Sheet normalization in october theyll announce it in september, start doing it in october. Assuming inflation data holds in there, december is a possibility for rate hike. Shrinking the Balance Sheet at the same time, thats the other question if you shrink the Balance Sheet and raise rates, what impact the market doesnt care at some point it has to weigh in on it. Everything works on unemployment now getting into full employment with no Wage Inflation. Something is amiss there in my view by now and any other recovery, seeing dynamic change in pay, we dont have it. What do you think i dont think it is quite like that. Productivity is weaker, inflation in general is weaker, look at real wages, theyre growing. Second, only when Unemployment Rate drops below estimated Employment Level that you get upper pressure on inflation. They put it at 4. 6 just broke through a few months ago. Show me Wage Inflation. I look at tax receipts for wages, they look stronger than wage numbers as well ultimately youll see more in the numbers. Some may not show in basic wages, bonus type income, that ultimately is captured when they do full data again, it is only when the Unemployment Rate drops through full Employment Level you get significant upper pressure we have just broken through it how quickly would you expect Something Like this. Nature of the u. S. Labor market is more gradual more a question of if you extrapolate, Unemployment Rate down to 3. 5 in a year and a half time, what does that mean if employment rates stop falling at 4. 3, would we get a big inflation problem, no. If the fed thought we would drop for sure, stop dropping soon, they wouldnt be too worried the question they have to worry about is if they dont change anything, unemployment keep falling and left with 3. 5 Unemployment Rate, and ultimately the economy is overheated thats what theyre leaning, yes. Are you watching things like that, Wage Inflation war to show up, something that would make you lessen tlaled with stock prices. We believe in the phillips curve. To me, wages are key variable. They drive inflation which will move the fed wages are key from macro and micro standpoint it is something central to our view over the next 12 months any chance we are not calculating people that rent units, where is all that in terms of how the numbers are calculated structure of the economy has absolutely changed we continue to look at the Unemployment Rate as being realistic measure of unemployment in the u. S. We are looking in the context of things of the rate, includes parttime workers, marginally attached to the labor force. This recovery was a doozy for the labor market it is lackluster havent seen Participation Rate tick up the way people expected. We think theres shadow unemployment we think thats part of whats keeping things in check. Also think it has to do with corporate labor. When labor is cheap, theres a bit of feedback. If you want to increase output, labor is cheap, why not bring in more labor easy way to do it, and keeps labor cheap. There are a number of things this time around which are a little different but expectation is that the labor market should continue to tighten, that should put upward pressure on wages. Seeing very good earnings coming in . Yes. Sectors that are best places to put your money . Question in the wall street journal raise today, value losing its shine and torrid growth era do you like Growth Stocks or value stocks we get that question all the time one of the things i have been saying to clients recently these are not your fathers Growth Stocks, not the 2000 tech level no earnings names. As of late, russell 1,000 growth index has negative correlation with Interest Rates. When Interest Rates have been falling, growth does pretty well people view it as more defensive asset, paying up for earnings and revenues, for example, Big Tech Companies are generating, using growth as more of a defensive play looking into end of the year, i think you want to think about it in terms of cyclical and defenses, we continue to tack materials, industrials, financials, and gradually warm up to energy as you see that turn around. Dave and jim, thank you for your time. When we come back, activist investor bill actman looking to shake up adp and programming note big lineup tomorrow. Jamie dimon joi james dinan, and then jamie dimon tomorrow on cnbc are you ok . What happened . Dad kinda walked into my swing. Huh . Dont you mean dad kind of ruined our hawaii fund . I thud go to the thothpital. There goes the airfair. I dont think Health Insurance will cover all. Of that. Buth my fathe without that cash from aflac we might have to choose between hawaii or your face. Hawaii what . Haha. Hawaii you might have less coverage than you think. Visit aflac. Com and keep your lifestyle healthy. Aflac thats why at comcast were continuing to make4 7. Our services more reliable than ever. Like technology that can update itself. An advanced fibernetwork infrustructure. New, more Reliable Equipment for your home. And a new culture built around customer service. It all adds up to our most Reliable Network ever. One that keeps you connected to what matters most. News out from tesla. The car maker announced intention to rate 1. 5 billion in a Debt Offering, wants to bolster the Balance Sheet trying to scale up production of its model 3. You missed the most important elon musk news this amber herd thing is over with shock. If youre following elon musks twitter, has pictures of him and her going to australia, going on vacation. Now us magazine says it is over. Who knows. Got to get focused. Bill actman setting sights on adp, has 8 stake in the Payroll Processing firm. We will get into that function within the markets with mr. Wonderful, kevin oh lear oh is he oh leleary they said why do we care what you say, meaning to mr. Actman the question is sort of in this day and age when you look at where adp is, and where bill ak mans record is, you saw adp go after him. They say we do well, you dont do so well what do you have to say about anything i am a shareholder. How long have you been . About six years, has been a great stock for me the reason i am intrigued is if there really is margin opportunity which is what his claim is, i see better margins ahead for this company, tell me more he has every right to use his platform to come out and explain what he sees that others dont you can criticize values or say herbal life was a disaster, and they were, but the fact that were talking about him now, he has a platform, when he first came out with this last week, my ears perked up really what do you know that i dont know tell me more this fund has a huge amount of his own money. If he bought 8 of the company, it is a Major Holding of his own dollars. Yes, i want to know what he knows. Do you as shareholder want him to run his directors after missing the deadline. I put the gauntlet out to him, sell me tell me what you know. Tell me the plan i watched him do some magic in stock that was underperforming forever, cp, a rail company. I was an owner. That stock was a phenomenal performer, or was. Came up to toronto, want to calgary, he pitched shareholders on his vision how the company could change in 36 months. He was 100 right. He whacked all the directors that were fat and sassy, doing nothing. Replaced them with entrepreneurial canadians as he said he would, dealt with all of the regulators there, took the heat, all of the press, and delivered massive value. Thats why he has my respect i didnt enjoy what happened to him on other names, but you capital get it right all the time i guess it goes back to the point, you think this is a company thats been a good performer, are you willing to see half the board tossed out. In this case, he effectively wants control of the Company Without a premium, by the way. There are many people that dont like him because of a perceived arrogance. And to actually go to a company that outperformed the s p for so long, say it could be better has a little arrogance to it out of respect to ideas, every ceo and every board should listen to shareholders, even if theyre socalled activists and hear out the idea. Let the market decide. No question i guess are you willing to let him throw out half a board. I want to hear the plan he certainly has a platform. If he wanted to call us and tell us, he could do it we would take the call and listen. Would you give an extension no, no. This board nomination process has been on the board a year we know that as shareholders in the name of allowing ideas to foster. No, no, no. You play within the rules, okay. And i am a shareholder i dont want disruption of my company just because somebody thinks they