Sharply on the yield, of course, as the yield goes up, price goes down. The differential has not been larger in a very long time. Interesting state. Yeah. Glad you put that up. People talk about why rates are low versus europe. Good point. Talking europe, there it is, largely in the green. European central bank, by the way, leaving rates unchange as you see, largely a positive picture. They will not be closed for the july fourth weekend. No. They will be trading. We will be, starting with the jobs number on a thursday. The u. S. Economy added 288,000 jobs in june, ahead of estimate, and Unemployment Rate fell to 6. 1 , the lowest number since september of 2008. Remember that month . Yeah. All this pushing futures, as you saw, slightly higher, dow closer to 17,000 having that impact, as i said, on the yield, on the tenyear note. A look here, my friend had a great summary, which sometimes i use, thank you, peter. 194,000 for 2013, Household Survey up by 107,000. Talking about the up employment rate to 6. 1 from 6. 3. Expectations for at 6. 3, lowest numbers since 2008, and 6 down to 12. 1. Overall, very positive, jim. You can at least, seems some people say, well, there was a fall in the Household Survey in terms of fulltime component versus parttime. Right. And that may be something that people look at, the quality of the jobs, again, and come back and say, well, that may be one area, at least, put up big numbers, 230, average last month. I think one of the extra boosts was we saw the gdp number for the First Quarter was very weak. Look at the businesses that nrkdsed higher, retail agreement increased 40,000 jobs in june. When the country thawed, business came back, when business came back, people said, holy cow, we dont is people working to handle business. This is a demanddriven hiring. Its so across the board, david. When was the last time you saw businesses in bonanza adding jobs . 17,000 jobs. Transportation warehousing, shipping more goods. This is a really beautiful mosaic of an economy hiring in many sectors. Its only been oil and gas for a long time, but now its across the board, very positive. I want to get the impact from your mind in the stock market, of course, but in terms of the bond market and fed which many people turn when they hear a number like this, if Participation Rate say stays the same, book says labor markets tighter than the fed thinksing and 6. 1 Unemployment Rate matched target, hence, move on rates faster than 2015 . Say its a reaction to slower gdp. Look, its good good numbers, okay. Perfectly within reason for her to signal something, and by the way, six months away from 2015. Its going to be the year, but were all so conditioned, some ideological and some of its prelim, and so conditioned when you get the numbers, sell stocks. Thats true, you have to sell utility stocks, start selling the companies, General Mills reported a number last week. I dont mean to pick on them, have a great ceo, but you have 1 1 Revenue Growth there hard to come by given the cereal market. Goes from 54 down to 52 bouncing back to 53. Okay, thats a bond. Bonds are not much more than that, after tax, the tax rates good for dividends, but i have to start about thinking caterpillar. Wait a second, they were the best performing stock on the dow from 16 thourngs level to dow 17,000. But so what . You want to keep owning and or buy the industrial names . Yes, exactly. I pulled the file numbers from this morning saying, woah, that stock shouldnt be at 66 longer. Ache a company, honeywell will not stay at this level. This is what we waited for, numbers higher, revenues up, and the price for employment, the labors not gone up. Its leverage to people at home. Leverage makes earnings explode. And top line growth to the point earlier with joe, where you are focused opposed to multiples which are fairly high. We have been through a lot of economic captiexpansions togeth and whats important, david, stop paying higher multiples for earnings and get bottom line to jump because of the top line. Its good, not bad, and please dont be confused by those wo give you a mixed message. No. Were not seeing wage pressure. If we start to, that could eat into margins. Thats why she has to raise, when she sees wage pressure. Right now, talking a quarter when we get reports next week, youre going to hear a word not hear in a long time. Visibility. People are going to say we have good visibility. Have not had visibility since 2007. Thats true. Lost it and never got it back. Trying to get the contact lenses. Every time were out of the woods, we have not quite been there. Yellen is thinking that, not wanting to use rates as a tool because of the financial inability. The fed uses this ridiculous, lets raise rates or help wall street at the heart of main street. Shes promain street. The fed has not been promain street in a long time. Lulu lemon founder speaking to private equity firms to take the firm private according to wall street journal, but theres theres no deal in the works, and the transition would be facing hurdles, but the stock is moving higher on the report, and thats why we mention it. We do seize these mentioned occasion occasionally. Its an idea on the part of the founder considering. Back in my day back in your day . Were in that day. I can use that phrase, you have no right to it. I was there when they signed the declaration of independence. Its not that great, and covered it seven times as long as anybody else. You wouldnt have done a story like this, but thats what stories are like now. The stocks moves jim, i dont know what the numbers are, are not going up now. Going down. Leading buyoffs, a special committee, you know, you got a lot of things going on. Hes x. Right. This has a best buy feel to it,day, and if you recall r there was not an inflection. Theres a lot of good ideas out there. Whats the process . Is he calling bankers, do you think . Yes, he is. If hes interested, line up financing sources and figure ought who the partners going to be and potentially getting calls in terms of your Equity Partner, right, and bring in the Management Team or leading that charge, and them the key is, can you raise the money, model out problemerly and had you be able to fine a firm and or firms willing to do it, move ahead with it, negotiate with the company itself, and see if you get to a number that makes sense. Going a model that shows if you execute better, cash flow is x and then you can snare the company like dell. Yes. Fire more people or potentially not feels in the case of del, a perfectly good example because they had a management by the way, is going extraordinary well from what i hear, and making carl icahn look right in terms where they were able to purchase the company. Although, there the special Committee Gave them a hard time for a long time talking about significant decline in pc sales we know about, but, yes, thats the process you follow, but well see. The stock doubled from where they could have got it done on the numbers. Feltd the competition from amazon was too great, no onemented to buy it, and them the turn around. Be careful, under armour, careful, gap, its not execution. Theres competition in the segment, david, and thats why people are evacuating. Yeah, and also transitioning the ceo position not lock gene. Khristine was a bin winner, shes gone. Shes gone. Google blocked access to an email containing confident rl client da to sent to a strangers gmailing the by mistake. They are looking for a court order to tell google to delete the email. Former ceo lynch, we mentioned him 2008 early we are, removed from europes right to be forgot p. I foipd this spresing, right to reserve justice . This was negative, not that there were not many of them, but a difficult tenure at the end there as we know. Perhaps not waking up to the portfolio, and seeing this before it was too late, but that said, whats the impact, if any, of the various rulings that get to privacy on whether it be google or the facebook, the Facebook Psychological experiment that we saw of a few days ago, that, again, in europe, much more sensitive to these things. Dont seem to care in this country. No, because i was taught by my lawyer for 25 years that when you send an email, its on the New York Times so feel selective. I see this thing, i remember the rule that my friend bill taught me, dont use more than ten words in the email. We email back and forth, and theres no expectation that email its on the server, and the government knows receiverers. I had serges done where the government has a guy. Usually, your internal counsel does it, and theres not anything youve ever written they cant get. By the way, ive been involved with the government where you thought that you deleted it, you thought it was not on your hard drive. Oh, man, the government has the greatest people in the world. You have no expectation of privacy. I dont know why they are getting lucky. Maybe they will. I dont know that impacts google this morning, but up next, we will talk about one stock having a big impact, petsmart, a big spike and well tell you why. Thomas perez joining us live with the first reaction to the jobs number this morning. Another look at futures here. Yes, it could hit dow 17,000. Got a lot more squawk on the street live from post nine at the nyse. Latte or au lait . Sunny or bubbly . Cozy or cool . Meow or woof . 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Petsmart spiking more than 10 after disclosing a 9. 9 stake and intends to have conversations with management including exploring a potential sale of the company, talk about the capital structure, return to capital, all sorts of different things. Obviously, jana is among the more active of activists, led by barry, he of the hamptons house fame, paying the most money for a residence, but i think he beat the market, move above what he paid. Flip it. That a story for another day. Here, what do we know about petsmart . Theres a 17 short position because it was to beat amazon. Go to the petsmart. Com site, which i do, the worst site seen. I said that on air, and they have money, save up to 40 on a dog collar. Its a terrible site. Thats what people bet, that petsmart sells a lot of stuff that is sold on amazon where it comes to your house. They have not done good with private level, estimates going down, negative samestore sale, and all that said, david, this is a terrific growth category with not a lot of people coming in. Get the omi channel right, and the stock goes up. The stock is going down, down, down, and theres a trend in having pets, we know that, with the best data on pets, but its smart to buy the company, take a shot at it. I have to tell you as the piece, the best, dated june 19th, waiting for the dog to learn some new and old tricks. Ive been too. Jana thinks they have them. A smart call by them. All right, 8. 9 million shares, 4. 7 million under option, a 341 million investment. Its cheap. Going for 435. Inexpensive stock. When i see a big short position in the stock, i say, guys, what are you thinking . Think amazon will wipe out petsmart . This is not that story. This is not circuit city. Its got a growth business, just not executing. A battle may end sue here. Well follow it. For now, though, the stock is up sharper. Arthur reaching hurricane status this morning moving steadily towards the North Carolina coast. The Weather Channel is live in kill devil hills, North Carolina, and she has the latest for us. Good morning. Well, good morning, david. The surf and the wind is picking up here, but it is going to pail in comparison with what is headed our way. Hurricane arthur bringing heavy winds and rain and dangerous rip tides. The 250,000 tourists here to celebrate the fourth of july week are keeping a close eye on conditions as are tourism based businesses. This is the busiest money making weeks of the year, and so far, it looks like hurricane arthur may not devastate the earnings. A lot of people indicating that they plan to stay here, plan to ride out the storm. Stores already reporting a run on supplies, gasoline, lanterns, batteries, things like that as people prepare to hunker down. Now, arthurs actually expected to be somewhat mild compared to hurricanes of years past. Still, officials are warning people to take their warnings and cautions seriously. North carolinas governor saying earlier, dont put your stupid hat on. David, it is a blunt, but an important reminder as things are going to get more extreme here as the day goes on. Back to you. All right, thank you very much, we try not to have the stupid hats on too often. Up next, cramers mad dash counting down to the opening bell. A look at futures, of course, before we hit the opening bell. We have a lot more squawk on the street. Looking forward to mad dash too. All right. We have a lot more, stay with us. Were you able to nail the number . If so, youre taking home the cnbc construction hat sign by the squawk on the street gang. Find out if youre the winner later on squawk on the street. And when i find it i go for it. announcer at scottrade, we share your passion for trading. 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Seven and a half minutes before the last trading session of this week, and, of course, our markets have the big employment number to digest. That is having an impact already on rates, which leads us to the mad dash. All right. Sometimes you dont want to out think tings, david, say to yourself, all right, whats going right and what can go more right . The banks recently started pickups. Why is that . The banks are wear you go when rates go higher. Im using bank of america only because Deutsche Bank had a piece yesterday saying, look, business could be better, you know, the fix in the trade might be better. Theres a pull over it because president obama talk about how theres too much risk in the banks. Stick with the regionals. Regionals should fly here. Theres wells fargo, u. S. Bank, but dont forget rs when the this is about just Margin Expansion for a bank, and when you have more demand in the industries, that means they do top line growth, so when we go into earnings period, the conversation becomes very different in the q a because of the employment numberment dont out think, buy the banks. Net interest margin a beneficiary. Yes. Especially to the likes of the wells fargo. You mentioned fixed income, currency, and commodities, more of an issue for the likes of a Goldman Sachs or the bigger banks, jpmorgan, citi group, and concern about that business . Thats what struck me about the Deutsche Bank. They said that vix is bottom. I said, going back and forth with the travel trust manager, and i said, listen, the job cuts are kicking in, revenue. She goes, no, the Deutsche Bank piece was about increase in business, stabilizing. If that happens, and you have mna is good. We know that, Capital Markets are good, the ipos, the fee structure, fees when you have a very strong fixed income cap on commodities. Multiples here are low. No one is expecting that rates are going to have this kind of move because no one expected the job numberment you menumber. Youll see these flying meaning they could fly into the report, and they report in two weeks. Well watch that and the commentary around it, particularly if we see a ten year staying at 27 or moving pup. Look, this is the focus name. The industrials too, but the banks have been bank of america is still down from where it was a couple year ago, and this is brians chance. If theres no screw up, this is best in show. I know, what a caveat. No psychiatry up. We have the opening bell, last trading day of the week as well. Just a few minutes away, the dow, of course, poised to breakthrough the 17,000 barrier. We have the market open. Stay with us with squawk on the street. 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