Year. They commented, what he said. Shares down premarket after they reported the drop of 2 , and why nevada really won the factory. The august employment report shows the smallest growth report, up 142,000, and julys gain revised up to 212, and unemployment ticked to 6. 1, and average up two tenths a percent, and earnings up 21, year over year now for two months 234 a row, but a stronger number would have given a Bigger Picture on wages. He said the numbers just not right, and i respect the work so much ied said, wow, okay, theyre a guy who said the watcher of the number saying august has a lot of revisions up. Search, well, how do you deal with effective retail so strong, and layoffs in Atlantic City, and theres big numbers, and we also know that theres people who wait to see some, you know, Affordable Care act, what its going to look like, and it was a confusing number, and said if it was missing, someones taking action on it. Im stunned. Im a little stunned. Felt like we had a lot of momentum. Yes. Feels like were repeating a pattern when we have momentum, we have a number that does not compute and or stops that momentum. Feels like janet yellen is smarter than all of us, but, look, i understand. Sometimes you say, okay, listen, fed spending is ratcheting back, there are issues involving whether the president could declare amnesty an we have a cheaper pool of labor and immigration. So many moving parts you do not think about until theres a number that does not fit the scenario. Right. Politico says this is all seasonally adjusted. Past five years revised up, to 77 taking you to the consensus this far. Right. Thats the issue. Zandi, like mel, this is what when does. Right. This is what he does, mark, you dont know what you are talking about, but you are saying, look, i know you follow it for a living, but youre wrong. It was an aberration. Im not going to game a strategy off this. It just wont work for me to do that. Im asterisking. I know youre not supposed to, but i am. The announcement from the ecb and significant market moves that resulted from that, i mean, is there any put it all in perspective for me, jim. Well, i think were still tightening like germany. We keep talking about tightening, not easing as much. The president could come out today saying were committing 50 billion to destroying isis. 50 billion, raise the money, destroy. People would cheer in the country. I mean, i think there could be a defense spend battle coming up. That corollary is putting people to work, not the way you want to, but there are issues involving federal government, lack of spend, and yellen still trying to make up for that. You always have to analyze this number. I know we do. This is the inconsistent month. It is. It is the month i least trust. Weakest of the year. Yeah. Average of six months is 226,000. I mention Atlantic City because maybe thats a shocking number of layoffs, like, big, big. Kroger this morning going to hire 20,000 permanent positions in theiradd ed 40,000 over six year, not in construction jobs, just pure supermarket jobs. Growing at 4 , whole foods less than that, krogers an amazing operator that embraced natural organ. They are on fire. They dont get the credit. They are the superior supermarket operator in the country. Now that the jobs number is out, did you nail the number . Tweet us predictions for august payrolls, and the winner receives a new cnbc pullover autographed by the squawk on the street gang, and well announce the winner in the show. Secretary perez is joining us later on in the hour too. Just days to go, thats right, days, before the Product Launch event, they respond to fallout from the foe toll scandal. Tim cook says the company will add security alerts for icloud user via email and notify them when someone changes the password. Regarding the situation, he told the journal, when i step back from the terrible scenario and say what more could have. Done . I think about the awareness piece. We have a responsibility to ratchet that up. Thats not really an engineering thing. Of course, frankly, the focus is much more on tuesday than the hacking of a handful of accounts. Get ahead of it. The question, carl, youll be there. Yep. And the New York Times has detailed accounts of a wearable, an iwatch, i guess is what its called, what it can do. Yesterday, trade publications came out with stories about, perhaps deals, this is speculation, not confirmed, so i dont know that we have at cnbc, that striking deals on the payment side with the big providers that allow apple because, perhaps, theyll take the fraud risk and because this device and or the card reading ability so to speak of the new phones will lessen fraud risk. They will take that on and get a piece of the pie on, you know, the 2 or 1. 5 that the store pays. Which would be amazing. Mastercard and visa play hardball. Downgraded, a mistaken downgrade, that means the device is going to be apple with thats going to be rooted, pay, pay, is everywhere. I think that combination is powerful. The wearable is interesting, but watching the game, theres a samsung pack with the extendble battery. Im the guy plugging my phone in. It was effective. Better than the gap ad, which was what if this wearable is a gamechanging moments . What if its we talked about it for so long, but apple, done this before, they got it right. Well, i think your doctors going to send you an email get the wearle. Oh. Thats a scary road. Why . Interested in the Health Element than a payment element . I spend more time on fantasy football than my health. Well, its 50 50. Lower the rate if you wear this. Now its gaming out. I like this. If you smoke, im raising your rates, you have a wearable, ill cut your rates. Monitor you everywhere. Privacys dead, but im saying it. You said repeatedly, dont trade apple, dont trade apple. Is the risk tuesday they do more than enough or not enough . I think because too much is leaked out. Too much is leaked out. Saying trade it. No, you know, when i saw the mastercardvisa, that is the holy grail, the payments. Speaking to kevin plank believing your shirt should have wearables on it because you need to have data. When i was at the Philadelphia Eagles complex for sports, i mean, theyre having wearables on the players because its incredibly important to know about dehydration, all about these factors that you can influence your life with. I want that. Okay. Those who do, i would assume will perhaps wear this. Listen, its not a reach to say that apple will end up doing it better. No offense to under armour, but apple can perfect the technology. Tim cooks and nikes board, all that. Kevin plank said how could our clothes not tell us more . Intelligence said to to me more. Will it work in the pool . Thats what i want to know. All the other devices break dead. Nothing works, so, sorry, theres still privacy maintain jurn water. Could be they could do the shorts, right . Like bathing suits. Speedo related . Yes. Ive never seen reports go over they have gone over how big buildings and pavilions are holding the events for apple trying to discern, therefore, what else is coming other than the larger screen iphones. Its big this time. Right. Bono rumors, where they announced the mac 30 years ago or whatever. The hype is there. No doubt. The hype and leaks are there. Stocks hammered this week, and all im saying by not trade it is because im sitting here thinking about the oddity of selling apple while i want more information to see how many of these devices i should buy. I know you made a statement basically that youre questioning the device. No, no, i think the device i have no idea what to expect other than it very well may be a leap, a real leap. But then you get down into the privacy thing that freaks me out a bit. Youre going to get to a world where everything is monitored to everybody, peer pressure to wear it, big brother, and, you know. Im just saying. I want information on what my bodys doing. I want more information about how your bodys doing too. Can i monitor your monitor . Youre cynical today. No, im not being cynical. This device is a must. Lets wait until tuesday. See, thats whats happening. When we return, first reactions from the white house on the jobs number and talking to the labor secretary this hour. Speaking of the white house, the president holding a conference at the nay doe summit in wales, concerns about isis on the agenda. Bringing that to you too. First, what tesla said why they selected nevada and why does he think the stock is too high right now . Take another look at futures. More squawk on the street live from the nyse post nine when we come back. Chocolate, soybeans, and apricots. What kind of chef comes up with this . A chef working with ibm watson, on the cloud. Ingredients are just data. Watson turns big data into new ideas. And not just for food. Watson is working with doctors and bankers to help transform their industries. Today theres a new way to work. And its made with ibm. In a we believe outshining the competition tomorrow quires challenging your Business Inside and out today. At cognizant, we help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. Last night, tesla announcing it will build the 5 billion factory outside of reno, nevada. The battery plant expected to open by 2017 will result in 6500 jobs when its up and running. Nevada will provide insentives that could total 1. 2 billion. This is what the ceo told our phil lebeau last night. The biggest single factor was time to completion because unless the factory is ready when we need to produce the mass market Affordable Electric car, then the Vehicle Factory will be sold. Time execution is extremely important. Nevada was in the lead on, id say number one on time to execution. Thats interesting given some elected officials told us yesterday it was just incentives alone, texas would have won, not nevada. I was surprised. I thought this was going to texas because that state has positioned itself in a remarkable way, but to disagree with musk, i know were going to talk about he said this stock may be too high, said that multiple times. Musk defied a lot of traditions and knowledge. He makes your Knowledge Base question. I just find hes a guy, well, reno, knew it as a place to get a quick divorce, quick marriage, quick battery factory. He did say, quote, in response to a question by phil, i think our stock price is kind of high right now. He said long term the price is good, but short term its less clear. Not the first time he said this. I think of Reid Hastings saying this not too long ago. True. These guys there will be people who short the stock because he said it, okay. Them they just get run over again. I mean, look, this is there are people remember the port that said they would have 500,000 . Going to make a car, look, the ive been calling it a cult stock. Its like a wide receiver. You want him in the fantasy leek. What do i say . Fantasy stock thats reality. You dont get those comments on the stock price from big bureaucratic companies. The companies where the general counsel runs things, never let the ceo comment on stock prices, much more akin to the founder situation or smaller entrepreneur. He can say it. Fun to listen to, but what do they know about where the stock price is going. What do they know . Honestly, what do they know . Hes. Wrong before about a stock and right before about his cars. I like him on the cars more than the stock. Exactly. When we come back, mad dash, the opening bell, and take a look at futures if youre just waking up, by the way, jobs a disappointment, 142,000. More squawk on the street from the nyse straight ahead. Ust howh it has to offer, especially if youre thinking of moving an old 401 k to a fidelity ira. It gives you a wide range of investment options. And the free help you need to make sure your investments fit your goals and what youre really investing for. Tap into the full power of your fidelity green line. Call today and well make it easy to move that old 401 k to a fidelity rollover ira. Its a powerful reflection of validayour drive to succeed. Nts. So, forget the gold watch; grab the brass ring. You dont need anyone to tell you that success is yours, because youre busy. Seizing it. Drafting it. Tuning it. Making it. The new 2015 cadillac ats. Were changing the way we do business, with startup ny. Weve created tax free zones throughout the state. And startup ny companies will be investing hundreds of millions of dollars in jobs and infrastructure. Thanks to startup ny, businesses can operate tax free for 10 years. No property tax. No business tax. And no sales tax. Which means more growth for your business, and more jobs. Its not just business as usual. See how new york can help your business grow, at startup. Ny. Gov getting headlines from ukraines president that preliminary protocol on a cease fire with russia has been signed. That agreement set to take effect on friday. There had been hopes wed get this today, although skeptics wonder if its a diversion on behalf of the putin to get in winter when they have the strategic advantage. Well, look, cease fires good. Hard war bad. Absolutely nothing, so to speak. Look, i think its good for the market. I dont think it brings in natural buyers necessarily because everyone is distrustful that the rebels can be controlled. Weve seen this behavior before. Lets take away with a grape of salt, but rumors this would happen and so its foregoing, but i think its, obviously, good news that war can be overted. Speaking of the market, lets get to the mad dash this morning seated because of the breaking news there. I want to start, i think, with michael kors. 11. 6 million shares sold, but, of course, it was a hot stock. Remember, peaked in the 90s, hammered, just awful. My friend, Herb Greenberg who is on the 2 00 show on street signs says this is important. Two founders. They are resigning from the board. Its not the companys not selling stock, but they are shareholder, and you dont want to see them leave. They were instrumental. Resigning from the board and selling stock. Its not just stock sale. Be careful. My feeling is that kate spade disappointment, after the coach disappointment and the kors issues, im nervous. Beyond this, what else . The environment got promotional. Remember, some areas of retail had gotten less promotional, some more. Kate spade after meeting, theres worries about being really promotional diminished as of late. Now, i met with martinez, the ceo of deckers brands, they are not talking about that promotional holiday season, and, remember, the other day manny, ceo of pvh did not think it was as promotional. Downgraded to sell. First quarter a public company. It was a good quarter, raised guidance, said many things. I want to point out, behind the guys, i know they want to hear who bought it because of me, but this is a private equity deal. You either have to sell these after the first good quarter or second good quarter. Thats the way of things. I say polo loco, heres the feeling about the now. I still love their chicken. Wow. You do . I still like their chicken. That is direct. Its been a good run, and welcome back chipolte. Interesting. Best performing ipo of the year. Been great, still can go higher. I know the private equity deals between the first and seconds quarter is when you take profits because they know how to come out of the chute. In light of the pot belly and noodles, i like fiesta group more and qdoba which is jack in the box more, and chipolte more. Which you have for quite some time. Got it. Last is miguel, not the expansion it needs. Comps were good. Not yet. Comps were good. Chipolte has 1700 stores, we have 17 tables, 18th table put in, we can move up the same store sales. Big time. Yeah. Gus is coming back too. To the Distribution Network he had . We have the opening bell, of course, digesting this weaker than expected jobs number. Six minutes away from the bell. Stay with us here on squawk on the street. Female narrator through sunday, its posturepedic through sunday, its posturepedic versus beautyrest with up to 400 off. Serta icomfort and tempurpedic go headtohead with three years interestfree financing. Mattress price wars end sunday at sleep train. 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This is between the rebels themselves, and well see if thats true, according to dow jones and whether it holds to some degree. Expected to take effect today. Interesting. We have to couch it so much. We feel somewhat mythed that its not clear cut. Who do they report to . Like factions in 19 38supposed to be under control of germany and with respect . I dont know. Suspicious. Got to verify. Walked through some of the loco numbers last night, and also last night, gap, august comps down two, estimate was for up a rise of 1. 6, old navy up two, encouraging. Inconsistency of gap versus now, consistency in the other players is so difficult. This one has become so hit or miss, reminds me of the chain, hit or miss, which, of course, no longer exists. I think ross stores are better. Its just hard to believe, i know, right . Inconsistency month to month. Yeah. They seemed to be on a roll for a while at the gap. Yes. I think its no longer the case. Just very, very hard to gauge. Thats one of the i had cooled in retail in part because i cant gap is a high profile company, and im having very difficult time predicting month to month sounding like they are having a difficult time predicting. It was the top pick for the second half. Now downgraded take two, which i think is a big mistake. Got a great business there. Star buckings, lunching a form of the store for people who dont want to hang out