Thats the strongest of the expansion. Well get to all the numbers of the premarket relatively steady. Europe is mixed. Yields actually if you just heard ticked up on that wage data. Factory orders, rig count and fed speak today still on the way. Roadmap begins with 156,000 jobs added in december, below what the street was expecting. The last jobs number under president obama. First it was ford then it was gm. This time the president elect goes after toyota sending alarm bells across the nation of japan. One retailer reversing the trend, gap shares are surging after a better than expected december helped by old navy. Well get into that. Aside from the december payroll figures, the Unemployment Rate coming in at 4. 7, as expected. And we mentioned earlier average Hourly Earnings up 2. 9 from a year ago, thats the biggest increase since 2009. Participation relatively flat, jim, i know you looked at with the revisions over the past two months people are calling it a bit of a push. I think when you see those average hours going up in terms of how much people are making in wages, thats something people have been waiting to see. I think there are a lot of people wlo feel those kinds of people those job levels have been disenfranchised, its good to see theyre making more from a point of view of the worker finally getting a little more money. But i think it also confirms the need to be able to raise two to three more times. Makes it so the 3 billion number im looking for from j. P. Morgan because they report next week that the four rate hikes they make 3 billion more were consistent. And that means that i think what will happen is that youll get the banks to back rally. Remember the banks slid back yesterday. And i really think that, yes, i know the Labor Participation rate is too low, but im looking for a market which says we need rate hikes. Because we cant have that leadership sink back and the market just go to f. A. N. G. Again, facebook, amazon, netflix, google, alphabet. Which just happened. It was a total f. A. N. G. Day. Was it a oneoff . You talked about this yesterday a lot, perhaps tax reform will take a bit of a backseat to repeal, replace aca to other issues and therefore is not even a 17 but really an 18 event. I dont need to say a thing. On from there. Yes. But today it may be today, look, we got some new tweets. Its just theyre more relevant to a show i used to be a judge on the apprentice. Not as relevant to the Corporate Tax. Although they involve it in trade. Disparaged schwarzeneggers ratings on nbc on a day where today 12 30 well get that intelligence he will get that intelligence briefing and well see if anything comes of that. But when i did look the apprentice, theres a lot of work that has to be done. Maybe schwarzeneggers not doing the work. What am i focused on the wrong thing . Focused on what the president elects focused on. Is it a mistake . I didnt see all the exchange on the aprprenticeapprentice. I fired melissa rivers, i didnt mean to. You didnt refer to yourself as a ratings machine my episodes did have some very good theyre his episodes did have good numbers. Im only addressing that because theres a string of tweets about it. Im looking at this. I just, i mean is this going what, do you have a problem . A problem with the mandate . Yes, i do. The mandate. I got no problems with mandates. Got no problems with mandates, women dates, you can date anyone you want. Were going to get wells, jpm this is so important. Were in the earnings soup and those dont have strong dollar problems. Im looking for them to anchor this. Im even looking for my travel trust owns it, im looking for wells fargo to have a not disastrous number. Its not just financials that lagged though, right . Yeah. Yesterday we havent had a new high on the s p since december 13th. Yesterday was a contra day. Youre not in the sell the inauguration kind of mode. No, im in a belief that the money stayed in the market. You know, i write a show with my nephew cliff mason and we were stuck with this idea that it wasnt in the end the money didnt flow out, there was another time the money would have just gone out of stocks. Instead it rotated. What . Average Hourly Earnings, that was a big increase. I know we pointed it out. That is something that the feds going to key off of. The fed says, hey, listen, now thats going up its time to tighten. Right. Well speak to mr. Perez, secretary perezs last time. It is. One last time. One last time. One last time. Well see who replaces him on that job. Dont know yet. No, we dont know. Hey, we have that fellow from cke i use on the show on mad money a lot, hes a cost saver that fella. Thats true. Though im hoping well get gary cohen out to talk to us. Theyre all good. Hes a great gas man, i used to run those commercials. The arbys commercials. Used to run them where, on your house . I ran them when i had them on. They were killer. No ones replaced those ads. Said competing with a billion dollar Marketing Budget at mcdonalds youve got to make them memorable. Youve got to do. Kind of like the Cool Hand Luke when shes like clean iing the car. Remember that . Im shaking it, boss. Still a lot of buzz this morning surrounding the president elects tweets about toyota from yesterday. As you know he tweeted Toyota Motors said well build a new plant in baja, mexico, to build corolla cars for the u. S. , no way, build in u. S. Or pay big border tax. Japan today defending toyota. Prime minister abes chief cabinet secretary calling the company an important Corporate Citizen of the u. S. Trump also making the front pages in japanese newspapers. This headline says trump tries to smash toyota. The finance minister says its unclear whether the president has a grasp of how many vehicles toyota builds in the u. S. Well, i mean, i think that the president elect has been very tough on ford and on gm, but if you go to the state that i spend my time in mexico in, it is bmw, it is lexus, it is benz. Thats who makes them there. They put them on the ksu union pacific. They come up. Doesnt matter if theyre from the center of mexico or detroit. Where does all this end, jim . Youve made this point many times in terms of what youve seen during your residence in mexico of the growth there. Yes, very important. A lot of the components are manufactured in the u. S. , i believe. They go back and forth. And they go back and forth and back and forth. If you continue down this road with large potential tariff on goods manufactured elsewhere, where does it stop . What about a drugmaker that is a u. S. Drugmaker that makes all its drugs in ireland . I dont know. Do you put a tariff on that . What about a foreign based drugmaker that makes all its drugs in the United States . Because it actually inverted itself. I had the most problematic guest on of all time last night. I had rob sands from constellation beer. And i said what are you going to do about corona and modal. He said you cannot make mexican beer in the United States because its not mexican. I had to think through that. Its true. I said can you make mexican is there a way to make mexican beers you can make mexican style beer. You cant make corona, its not heche, texas. Did you hear what dillard said in this interview after headlines came out yesterday about trumps wouldbe opposition to time warner at t. Who cares what he thinks. This is dillards words, who cares what trump thinks about anything unless its obvious hes going to micromanage every element of things like antitrust. Thats a good point. Well see who he appoints to the antitrust division of the doj once sessions is confirmed, assuming that is the case. Well see who he appoints to run the fcc. Theres an expectation there that it will be very much hands off when it comes to the fcc. That you will immediately have a turnaround on Net Neutrality and a number of other things and that can happen quickly. But youre right, we dont know. And yesterdays report from bloomberg saying that a confidant continues to say trump opposes that deal, which did increase the spread in the deal. You know, its very hard to know what to make of these kinds of things. Hes granular about this. But president obama was granular about those trips to vegas. Remember, he said that . I do. That was like vegas, tourism took a huge header and no one if he said trips to different junket places, maybe it wouldnt have hurt so much, but i dont want to give anybody a free pass. President s can single out but its clear in terms of a theme that he is building this case for a border tax. Absolutely. If you dont make it here and you import ilt from there and bring it here, its going to be taxed. But paul ryans made that case for a long time. Without a doubt. And in fact the journal today has an interesting story about retailers after analysis by other parties in terms of what the cost is going to be on their tax bill. Its going to be enormous. Another reason to avoid this group, that group is really f m from look at old navy. Eventually going to make close as well so put hundreds of millions of people out of work in emerging markets and then they can move all the manufacturing back here but its not going to create jobs. The Tech Industry was the most by nafta. You can go over the Labor Department, ive looked at that Labor Department thats where we were decimated. Thread a needle and put on a button and then youre talking about massive unemployment. These ties are from florence. Thats very nice. Im sure it was hand made. You went to florence with vik ki we went to italy together, yes. I watch all his documentaries. Amazon, j. Crew, house of cards. Thanks, carl. They were good ones. He had a bunch of good ones too. Unfortunately we havent made them anymore. Theres a lot of shark tank to watch. Yeah, billion dollar faber. Billion dollar faber. Just a combination i like that. I like the way it sounded. When we come back, jim mentions gap and we want to talk about this rare bright spot for retail and what has been an ugly week. Also ahead, labor secretary tom perez on this mornings big jobs number. Two weeks left until the Trump Presidency. Take another look at the premarket after that big day for f. A. N. G. And amazon and the nasdaq yesterday. More squawk on the street from post nine in a minute. Jc penney latest Department Store chain to report disappointing sales, comps down 0. 8 hurt by weakness in womens apparel. Gap is a bright spot rising in the market after post ago surprise 4 increase in december comps, that includes a 12 jump at old navy. As a result gap now sees full year earnings at the high end of the previously announced guidance. Its been awhile since old navy has been able to do this for the company. Yeah. The company itself is calling itself slow moving train, not rolling to call an inflection point, as im reading the j. P. Morgan note. Supercash redemption days in december, year over year including tv new price point promotions there are some things going on that are good but this is maybe the most inconsistent of the majors. So i hesitate to say buy, buy, buy gap stores because then the next month could be different. I brought this up in our last conversation, but i mean, at what point do we start to have to include a discount for the fact that so much of their product is imported from indonesia, vietnam, turkey, mexico, china and all apparel selling companies . If this border tax you cant expense it if you cant expense your merchandise. Youre going to benefit from a lower tax rate, youre going to benefit from capital expenses being able to be immediately depreciated. Look, i think its not a push. I keep coming back to why i like the bank stocks. Goldman sachs see a price rise target today. They just dont have any of these issues. Theyre really in the sweet spot. Some are trying to read into this border tax, say theres a minimum, right . A 5 cost to goods thats exempted, is that positive for dollar stores, right . For walmart. People are trying to read way deep the level of granular tito this thing is rather extraordinary and i think its not been thought through and its going to take forever to get through. It is. Were going to do a lot of analysis of it. Were referring to a lot of what is in the ryan plan, which may or may not become what we end up with. Im not saying its inconceivable. Im saying its so complex that if this is what the Congress Gets bogged down with, youre not going to have repatriation, youre not going to have traditional Corporate Tax reform. Why are you saying that . Bogged down with what . Its not going to get done. Because this is really hard stuff. It is, but its part of the plan. Whos sitting there . Like whos this guy . Maybe it will be you. You were on the apprentice. That was a long time ago. And i was a rigorous judge. And i got to tell you, i would i didnt want gene simmons to go, i urged him not to quit. Youd be a good negotiator in there. You would. You know all the Different Things. Well, i like this job. Can i keep this job . Sure. But i think davids point is a good one. Youre great on twitter. Yeah. You know the impact, say thats going to hurt, thats going to hurt get it done in 20 minutes. You raise a good point. You raise a good point. I like when we render you speechless. I know. I mean carol alt was someone that i went i was all who . Carol alt. She rendered you speechless . Yes. I can see that. Very beautiful woman. When we come back well get cramers mad dash in a moment, count down to the opening bell. Later on interview with tom perez labor secretary and intels Brian Krzanich. More squawk on the street from the nyse is back after a break. Healpi caa ball cos14 eawhatursrgbuh an yd ic gs ricaesd ic owhat c well count you down to the opening bell, last trading day of course of the week. About nine minutes before we get there. Where are we headed on a mad dash . Clear up what i meant is i felt carol alt should have been carol alt, former supermodel, was a contestant on the apprentice that you judged. And i did not my analysis was not accepted. But thats okay. I thought i made a very good case for her to go to become the cleb celebrity apprentice. Clear that up. David, big court case, regeneron vers versus amgen. Amgen wins. Okay. This is over this pralien, very important high cholesterol drug a lot of doctors want to start giving to people once theyre absolutely sure because this is the one if you have really high cholesterol this could be a lifesaver. Was the court case about a patent. And amgen outright won. Now, i cant believe theres a lot of people are saying wait a second. Does this mean regenerons just blocked . Yes, for now. And goldman takes amgen from 202 to 218. Wow. David i know. Remember, sanofis been buying regeneron stock throughout. Yes. But i think this is a clear call to buy amgen. I think people should buy amgen if its only up five bucks. This could be some sort of settlement, but david, its stunning. Amgen could go higher. Interesting. Amgen, jim, also on a very different front has an enormous amount of overseas cash, maybe the single largest in the industry. Is that true . And certainly when you compare to their cash flow as a percentage versus a company like pfizer, it is by far the largest. So thats also they are a big beneficiary of potential repatriation at amgen. Just Something Else to throw in there. That stock should be higher. I did not know that. Yeah. And i just know this is a big win for them. Amgen has a lot of things theyre doing right right now. I like that stock very much. We have a lot of other stocks were going to be following this morning. Of course get back to that point we got on the employment number, 156. Keep an eye on the bond market too when squawk on the street comes right back. My name is jamir dixon and im a locate and Mark Fieldman for pg e. Most people in the community recognize the blue trucks as pg e. My truck is something new. Its an 811 truck. When you call 811, i come out to your house and i mark out our gas lines and our electric lines to make sure that you dont hit them when youre digging. 811 is a free service. Im passionate about it because every time i go on the street i think about my own kids. Theyre the reason that i want to protect our community and our environment, and if me driving a that truck means that somebody gets to go home safer, then ill drive it every day of the week. Together, were building a better california. E . Na c youre watching cnbc squawk on the street live from the Financial Capital of the world. Well get the opening bell in just about four minutes. Final one of this first trading week of the year on a jobs number of 156 below the 178 estimate, but november and october put them together with revisions they were upped by about 19. So pretty much in line. Yeah. All you would need to see in this market remember is very different from the preelection market is you need to see enough job growth, enough wage growth to be able to make it so the fed does raise normalized thing things, be able to get it so you really feel like were going to be able to come into this year a little bit stronger. No sooner do we have greater auto numbers and people said peak auto. No sooner we had higher rates and people said mortgage purchase numbers were down. You dont want to see a lull because the lull just drives you back to cloud stocks. And there are not enough. Nasdaq hit an alltime high yesterday. Thats contra trump. You want to see the industrials. What . No, i know. Contra trump. Not a trump stock. Not a trump stock. Not a trump stock. Not a trump stock. Workday, not a trump stock. Service now, not a trump stock. Not a trump stock. Box not a trump stock. Best day yesterday for amazon in more than seven weeks on a week where Everything Else is sort of retail misery. And it went up throughout the day. At 9 45 it was up 4. 5, looked like it was going to waver with the rth and then, boom, inflection point. By the way, costco, travel trust owns that, costco a good number but thats because youre going to see i believe a price increase in your membership. Remember that is the brick and mortar version of what do they charge for one of those right now . Like 55 or something . Okay. I dont know, my wife buys them. She has a black card . Its a great annuity and thethey have improved the website, which was horrendous. It was one of the worst out there. We did get some blue Chip Research today on disney, an u