Fiveyear lows just moments ago and data at adp, 176,000 jobs last month. All of this as you mentioned before the big jobs report comes out tomorrow morning. This is one to watch as it inches ever closely to that 3 mark. Question is whether investors are ready for it. Bank of england and ecb are stating pat on the key decisions today. Plenty more with simon and the close later on. The road map today begins with the jobs data. Unemployment up while weekly jobless claims fall again. The smartwatch competition has started with both samsung and qualcomm unveiling their first wearable devices. We will have both on the show. Yahoo rolling out the new logo for the First Time Since 2009. And symbolic of many recent changes of the company under the new ceo Marissa Mayer. As if that wasnt enough, jcpenney is talking Martha Stewarts home goods line before a judge even decides the outcome of the threeway licensing battle with macys. And speaking of threeways, bk, brian. Thank you. Its good to be here. I see everybody else was off. Yes. That time of year again. Markets are digesting all of this mornings data ahead of the jobs report tomorrow from the labor department. Lets expand the discussion and bring in dan greenhouse with btig and scott, senior equity strategist with wells fargo advisers. Guys, good morning. Good morning. Dan, first to you. Last night some really interesting comments where youve got the feds John Williams seeming dovish, talking like he supports bernanke, believes the Unemployment Rate is falling. Bhil at the same time coming out and saying, no, fed needs to keep doing. What does it all mean . Obviously you have a number of people on both sides of the equation and ultimately what it comes down to is what the core of the central bank essentially ben bernanke thinks and in that regard i dont think anything either one of them changes, the story in september, theyll probably reduce asset purchases. Although i think that will be a bit less than the market expects right now. Were talking about what, ten days out at this point. While at the same time youve got this whole issue with syria while at the same time there are discussions with who is going to succeed bernanke, dan. You dont think any of that saves their hand for now . No, i do not. But again, mind you, the important question here is not that that go ahead and reduce asset purchases. Its what they do after that. No harm, no foul if they reduce asset purchases by 10 billion and keep it there through the end of the year. I think that buys you time to deal with the issues that you discussed. Scott, the Employment Situation is supposed to be front and center. Today weve got this weekly jobless, the best of four or five years. A real strong picture. And yet its hard to argue that actually the labor market is accelerating arguably. You know, its still slow and steady as we saw in the beige book yesterday. What do you think, what is the view of the fmoc of employment specifically . Well, simon, i think that our projections, lets say initial jobless claims, for us, by the end of the year, our projection for the fourweek moving average is down to 300,000. Thats obviously some decent improvement from here. I think it is going to be slow. I dont think were going to see an acceleration there. I mean, much like the economy. You know, i dont expect much acceleration. If i looked out through the end of 2014. Marginally better, sure. But not a lot better. The fmoc, i think, you know, on their gdp estimates, they are too high. They are too high for this year. Theyre too high for next year. I think their unemployment numbers are pretty much in line but i still think youre going to be around 7. 2 or so on the Unemployment Rate this year. Theyre going to think of that but the fed, overall, is too optimistic in their economic projections. At least in my opinion. Hey, scott, quickly here. I want to ask you because youve got a lot of listeners. Scott, hold on for one second. Were giving you a live look. The president arriving at g20 st. Petersburg, russia. Showing a shot of him getting out of the him malimo. Also, of course, you have noises from both russia and china over specifically the fed. Argument that they should be very careful as to how rapidly they withdraw for the effect they have on emerging markets. Brazil, of the view, just get on with it. Not only is americas the worlds policeman, were the worlds central banker now. Yes. Fantastic. Nothing new there, right, guys . Unfortunately, scott. We have a lot of people, 6 00 in the morning in los angeles. Sitting in dead traffic in the 405. Their brain hurts thinking about the federal reserve. They just want to know what to do with their money. What do they do with their money . Well, the one thing that you know, do not fret over what the fed is going to do. I mean, they are going to taper. Whatever reaction we get in the market, underlying fundamentals are improving. If we see a selloff because, you know, they cut more, you know, lets say they cut 30 billion which i think is almost impossible, but, you know, if they cut 10, thats not so bad. But people need to be in here looking at pullbacks as opportunities. They need to be buying stocks in the consumer discretionary, Something LikeHome Improvement retail, technology, communications equipment. Industrials sector. You know, railroads, things like that. Things that are sensitive to the economy because i think the economy is going to be marginally better here. The lei, leading indicators are turning up in europe. Youre going to see better news there. Emerging markets are going to come around a little bit in 2014. So you want to be in this market. You dont want to be sitting on a ton of cash. You dont want to be defensive. You want to look ahead and be in this market. Okay. Dan, just on the shorter time horizon, clearly the bond market is moving in anticipation of what the fed might do. 2. 92 is the yield on the tenyear and clearly heading higher, it would appear. I think you wrote yesterday that the equity market could quite easily withstand tapering. It surely hasnt factored in a tapering as things stand at the moment because we dont know the quantity or the timing. I dont disagree with you entirely. But at the same time, its not like the idea that the fed is going to reduce asset purchases as something new and when and if they reduce purchases in september, its suddenly going to catch all of us off guard. One thing i would disagree with is market purchases have not accounted for this. Again, the yield on the tenyear was 13 months ago was 140. Today its 292. So i mean the equity market may not be down as much as people think. But i find it hard to believe that people in the market and, again, i dont advise retail people. Btigs clients are all institutions. They know somethings coming. This is not a surprise. Dan, thats whats interesting about this. I guess you could argue its the market pushing the fed or expecting a more aggressive response. Certainly than anything that theyve told us. But weve already now effectively had a massive tightening event happen in the u. S. Economy over the last 12, 14 months. To go from 140 to 3 on the tenyear. Where does that leave us . Listen record auto sales. Higher home price, and more jobs. Brians right. I mean, listen. Partially brians right. Say it again. I wont. But listen, its the idea was never that, although for some people it was, but the idea was never that the economy couldnt withstand any increase on n. Interest rates. At the end of the day i could find instances in which the equity market did just fine when Interest Rates were 4 or 5 hrs paul ryanhrs or 6 or higher. The biggest problem has been the speed of the adjustment, not necessarily the level. Lets not forget 290 on the tenyear is a very low Interest Rate. No, i know, by historical standards and yada yada. I just think, brian, you make the point that so far everything looks aokay . I think the jury we havent gotten full data as to what is happening in the Housing Market. Okay. Let me just dial it back a little bit because now i feel like the old man on the panel, okay, because i was born when there was a 7 in a year. Scott wren may be able to back us up. Im the oldest on the panel. I just believe that americans are smart enough to understand that 4 1 2 on the mortgage is still a darn good rate. Im not going to rip my shirt off and run through the lower streets of manhattan when we hit 3 on the tenyear. It is relativity. Yes, but the beige book would argue against you. The beige book, as you know very positive. Beige book spoke about people actually bringing forward their purchases on existing homes rather than new homes for near that the Mortgage Rate is rising. Of course people want to spend less than more but theyre not going to stop buying homes at 4 1 2 mortgages. I spoke to five realtors in the last to weeks and they are doing well. I spoke to a rel or last week who had five bids on the same home and it was a jumbo mortgages. People dont stop buying houses. They end up buying smaller houses to accommodate for the higher Mortgage Rate. Well follow it. Dan, scott, thank you for your time this morning. If you want to read up more again on jumbo rates, its on the front page of the journal today. Samsung unveiled galaxy gear smart watch. It works as an accessory to the smartphone. Small screen offers photos, well, i think its a camera, handsfree calls and instant messages. Some question whether its too costly. Priced just about 300. Qualcomm is getting in on the game with its talk smart watch which can play music and handle phone messages. I would have talk the talk would have been more appropriate for you because you probably dont have the galaxy which the samsung relies sglon also, i like to talk. Theres that which led me to my current career, by the way. The reality is if its linked to your phone. I dont wear a watch. I gave jeffrey on the air one day and never got it back. If this watch does things by itself, i might be interested. If it has to be linked to a phone, why carry around two devices. Im not sure what the wifi things are doing to our brains anyway. Hardware, in advance of aid to copy apple but the advance on the rollout. Interesting thing. Wearable tech, google glass. A lot of people love it. A lot of people are calling people these glass whatever something, you know, swiss cheese. That kind of a thing going on there. Wearable tech. Bottom line, simon, youre a fashionable, dapper fellow, would you wear that watch . No. Bingo. But i dont think im a very good guy because im too old. I was born with with 8. 6 in the decade. Really . Yes. A lot of work. Appears development in the meantime involving jcpenney thats not going to bode well for Martha Stewart. Coming up, well explain that one. Also ahead, scoring big when it comes to video game stocks bhap the emergence of new consoles could mean for the rally we have seen already in those shares. Squawk on the street will be right back. In todays markets, 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. Now get 200 free trades when you open an account. Nascar is ab. Out excitement but tracking all the action and hearing everything from our marketing partners, the media and millions of fans on social media can be a challenge. Thats why we partnered with hp to build the new nascar fan and media engagement center. Hps Technology Helps us turn millions of tweets, posts and stories into realtime Business Insights that help nascar win with our fans. Welcome back. Jcpenney is reportedly scrapping Martha Stewarts line of home goods. This according to the New York Post, saying penney ceo is saying the judge has not yet ruled on a scuffle that involves pe penney, stewart and macys. They soured on the Stewart Brand because items are not selling and the designs, quote, arent that great. Strong words here. He does continue to undo a lot of the initiatives with ron johnson was involved with. Is he trying to do a deal, an outofcourt settlement . Perhaps. But i think this one was looking at penneys favor anyway because they said martha had broken the promise going on with pamacys. What is your assessment of the designs in the stores . My family went into a jcpenney in the Apple Blossom mall on sunday, my mom, my daughters grandmother, bought her to back to School Clothes as a gift, the store was packed. They loved the store. In the Martha Stewart section . No. Im just saying weve been covering on jcpenney on street signs for two years now. Our guests have been bashing it. There is a sense you get. Ive gone to a couple of Different Stores here. I dont think the one here many manhattan is a good representation. The food traffic is artificial because of the train station. I think there might be a turn here. You wonder if at some point ron johnsons vision, if they can keep the cash going, right, if his vision may turn out to be right. Will he be ultimately vindicated. Is the johnson vision and the ullman vision the same . No. Johnson was no discounting, no coupons, hip it, modernize it, change the logo. Logo is a big discussion there. Changed the logo. That was a real change of logo, by the way. Ron johnson also introduced i think i went to one in richmond, virginia, had a se forea in the middle of the store. Sephoras a highend chain of stores and they had one in the jcpenney and it was getting decent traffic when i was there. To somewhat extent are they going to be successful and do you credit ron johnson or if mike ullman changes things up a little bit how does that picture t it . Another retail story here but im sure courtney would have an opinion on jcpenney as well but shes covering a different story. Numerous walmart employees and supporters will participate in nationwide protests today. The workers seeking better jobs and higher pay. They want 12 bucks an hour on average and also 70 workers reinstated who were allegedly fired for protesting a few years ago. The demonstrations are scheduled to take place in more than a dozen cities. One of them being new york. Cnbcs Courtney Reagan is there with the latest. Courtney . Hi, good morning to you, brian. Thats right. Im on fifth avenue in new york city and i told our walmart is a Labor Rights Group expects 50 protesters to show up in an hour from now here outside the office of Christopher Williams. Mr. Williams is the ceo of Williams Capital Management. Hes also a walmart board member. All of these protesters will have petition in hand with 200,000 signatures that they plan or hope to deliver to mr. Williams, demanding better worker rights. The group says that since june, 80 workers have been illegally disciplined. 20which have been fired. They have asked walmart to respond to the demands to reinstate the workers and they say because walmart has not done so they are staging these protests. In a handful of cities around the country throughout the day today at both walmart locations and board member offices or homes. Again, like the one here today. Now, our walmart, again, is planning to have about 50 people here that will be protesting. But only a handful are expected to actually be walmart employees. The rest are activists, clergy members. Other type of Union Supporters here. We will speak to them when they show up and begin the protests. Walmart employs 1. 23 million folks in the United States alone. The company says that their average fulltime hourly wage is 12. 83 an hour, according to more than 25,000 a year. The retailer says more than 85,000 of the associates earn 18 or more an hour. Walmart disagrees with those statistics. We reached out to walmart for a statement on whats happening today and walmart spokesperson brook buchanan said walmart will continue to serve customers in over 4600 locations. We believe the unionsponsored demonstrations made up of Union Members and activists in a handful of stores will cause little disruption to our overall operations. I spoke to mr. Williams wife. She was actually out here today p and she said that mr. Williams is, in fact, out of town. Back to you. Okay. Courtney, thank you very much. What is the main issue on art cashins mind this morning as we get back to the markets. Up next, the wall street veteran share his market words of wisdom as we countdown to the opening bell. The futures, indication is a flat open after yesterdays surge. More squawk on the street from the nyse straight ahead. Ive been doing a few things for a while that i really love tdd 18003452550 playing this and trading. Tdd 18003452550 and the better i am at them, the more i enjoy them. Tdd 18003452550 so im always looking to take them up a notch or two. Tdd 18003452550 and schwab really helps me step up my trading. 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