The biggest mover when you get sort of adjustments, well, a little bit. But not really. 2. 35. Kind of hanging in there. Crude oil has been one of the bigger stories of the week of course with its significant drop over lets call it the last week or so. Oh, its a crash. Crash. I would put it when you have its almost one of the things that we have to talk about was there two hedge funds somebody didnt liquidate it. 53 or 54, straight line, i think it borders on a crash. Straight line. One of the stories were following this morning. Lets get to the others and our road map it starts with of course the u. S. Employer employment picture. U. S. Employers picking up the pace of hiring. The Unemployment Rate fell to the lowest level in nearly a decade. Plus oracle of omaha, is r ouring is osouring on ibm. Jim and i may wonder what took him so long. A warning to the Trump Administration. Ges jeff immelt calling on government to try harder to avoid the protectionist policies and to level the Playing Field for american companies. Job creation improving in april after what was disappointing growth in march. Nonfarm payrolls up better than expected. 211,000, that was spurred in part by strong hiring and professional and business services. The Unemployment Rate fell to 4. 4 . Average Hourly Earnings rose last month. Not bad. No. I think that this is one of those numbers that may counteract the notion that the economy got so weak that the fed was out of touch. When it was so hawkish on wednesday. Did the fed have the number, we can play that parlor game. But you did wonder it immediately. What did they know . Of course, lets play it out the other way. Lets say they said hey you know, what, we have to wait and see. Then we would have wondered what are they waiting and seeing for . Are they behind the curve . We had one person after one person say theyre behind the curve. Im glad for the number so we dont hear that chatter all day. You think that june is back on the table in a bigger way with the rate hike . Its not like we had a gigantic increase in wages, 7 cents. But something you care about this a lot. Discouraged workers were down to 455,000. Down 113,000. People coming back to the workforce. Some surprises here. Leisure and Hospitality Plus 55 . This jibes with what were hearing from priceline and the cruise lines. People are doing experienceal and that means we have to hire. Yeah. Say it again. Im encouraged. Lets be human for a second. Isnt it great . Its a great number go back to 2007 and start having jobs. Generally earnings, jim, which is important. Up 0. 3 month over month. That was more or less in line with what people expected. 2. 5 year over year rate of growth. Thats below where people are with regard to the consensus. We should talk about that. I know we were some of the discussion we had when we were obviously out in the west coast is the notion of what is technology doing . And its creating a lot of pressure on price. On wages. As opposed to eliminating jobs. Right now were only in the pressure on wage. Which means what . Well, youre not going to have the inflation that i think people keep expecting. So behind the curve chatter, i think the fed is very smart about this. The fed seems to recognize what you and i recognize which is that theres going to be jobs being taken out in retail. Theres going to be taken jobs being taken out by technology. So dont be dont put the you know, put the pedal down and do three, four. The people have to find a ways. Otherwise we should see the Wage Inflation line the 70s. Not happening. It is not. The larger issue we have talked a great deal about is automation, robotics, ai, all those buzz words we like to throw around, but how many jobs will be really lost over the last over the next decade. Right. I think the psychedelic call that elon musk led thats what you call it now . Thats what you have to call it now. Mushrooms. One time it was plastics, but now its mushrooms. But what i liked about it, how quickly the robots can move. Now, again, one of the things behind the scenes the terminator comes up endlessly in california. Yeah. Endlessly. Endlessly. Some people i know everybody is talking sky net. Well, because theyre talking there, sky net. What happens if the robots can make 500,000 cars by year end at tesla, what that says what happened at intel when i visited a plant in israel. They put a plant in israel. People arent allowed to work on saturday, how do you do 24 7 . Its not people, it was robots and that was in the 90s and now the robots converse, they play the game go, they beat each other. Yeah. So far, not having a huge impact on overall employment. Yeah. We should talk weinstein. Einstein versus watson because watson does not fare particularly overnight farewell. Lets move on to that big story. Ibm news, Warren Buffett telling our becky quick that he sold about a third of Berkshire Hathaways shares in big blue. Becky asked buffett if it was based on the revenue decline or its Cloud Business not growing as fast as expected. Here is buffetts response. Well, its based on a lot of different types of businesses but the earnings have been obviously disappointing. I mean, five or six years ago i think they were earning 20 plus billion pretax. And maybe its 13 billion now, i dont think the quality of earnings has improved so its you know, its been a period when it im sure that its been tougher than they thought, than i thought, i dont blame them. I get paid to make my own decisions just like an an apple or something of the sort. Sometimes im right, sometimes im wrong. I think ibm is a big, Strong Company but they have big, strong drm competitors too. Some he stays in some names for a long time and some he gets out of quickly. This is not a cocacola, but not one of the names where he was sort of in and out with relative speed. Right. When we saw him last, when he put out the report he was selling. Didnt really come up. If you remember when he put out his quarterly. Yeah. It will cause people to revise their thinking. I was not clear enough in the first hour when you were on squawk box. Ibm, people going to say he must think its going down. I actually think that he may be selling just about the point when ibm is about to tip. Ibm got mentioned a lot of times out west. It did . Not tipped, turn. Turn positive . Not tip over. Theres more artificial intelligence, thats more analytics but it didnt happen fast enough. Its kind of like for buffett i think its the river jordan and hes on the jordan side. Just looking over to the land of milk and honey, decided he has to cut his losses. Because it is you know, he would say look, we have some basis that its okay. Base us that its okay. I dont know what the overall performance is but it didnt perform well for them, no doubt. One of the things thats happened at ibm i think they felt if they kept returning capital in the form of buy backs and dividends very unusual for the Tech Companies unless you have huge cash flow and youre also growing, that frankly the nation i think they should rethink. They can keep raising the dividend. They can keep buying back stock. But i think what they should have done is the big acquisition now. Well talk about apple in the big acquisition later. But ibm has done a huge number of acquisitions that slowly move the needle. I heard a man say its not fast enough. That they were really catering both to the audience thats in the stadium, which is Warren Buffett. And the audience thats outside the stadium. Maybe they should have catered more to the outside. Should this make people feel that ibm is not worth as much, they will. I think the Growth Initiatives that they have undertaken over the last three to five years are performing fairly well. Yes. Yes, they are. But can the growth there outpace what has been the what we call the legacy businesses almost at this point. Which still comprise a larger overall component of the revenue. Almost every company that reported to be okay, lets use 3m, the stock went down and it came right down. The only one that hasnt come back in the dow was ibm. I wonder whether that wasnt persistent selling by buffett ahead of this move. Is ge still on the dow yeah. They had a quarter. Cut me to the quick. The larger issue about doing a large acquisition to change the complexion of the company is not without huge risk. When you do that as a company youre also saying to your investor base, all right. We dont think the old business works. You can get penalized for that. Youre kind of damned if you do, damned if you dont. Brian krzanich buys they have the best Autonomous Car intellectual property but the chips are expensive. Intel is the worlds greatest manufacturer. It has been for years. They bring down the price of the chip, suddenly they have the best autonomous chips even a waymo which is owned by alphabet was turned off. But making intel not the pc company that we still associate it with, but making it more like lebron james new ad campaign, yes. This may be the size of the acquisition that doesnt attract quite as much concern amongst the investor base. Its the transformational deals that you say that ibm should have done ala aol and time warner. What did Warren Buffett really say at the end . Well, theres a lot of competition. Theres not a lot of competition at burlingtoner on northern. And he talked about amazons Cloud Business and how long it took for the competition to come. Youre going with the with whats going on at ibm and he pivots to bezos. And hes the evil empire out there. Listen, dont worry. We have our flank protected. Who is the flank being protected against . Amazon. All right. When we come back, of course, a few minutes from now, ges Ceo Jeff Immelt has a message for trump when it comes to trade. Higher stock price . Okay. Oh, lets give you another look at the futures. Nice pictures of jeff. We have a lot more squawk on the street right after this. I am benedict arnold, the infamous traitor. And i know a thing or two about trading. So i trade with e trade, where true traders trade on a trademarked trade platform that has all the. Get off the computer traitor i wont. cannon sound i wont. Now on the next page youll see a breakdowhat . Costs. Its just. We were going to ask about it but we werent sure when. So thanks. Being upfront is how edward jones makes sense of investing. Hey youve gotta see this. Cno. N. Alright, see you down there. Mmm, fine. Okay, what do we got . Okay, watch this. Do the thing we talked about. What do we say . Its going to be great. Watch. Remember what we were just saying . Go irish see that . Yes im gonna just go back to doing what i was doing. Find your awesome with the xfinity x1 voice remote. General electric Ceo Jeff Immelt urging the white house to avoid protectionist policies and to level the Playing Field in tax reform and other policies. Yesterday he said that companies should try harder to compete and that public sentiment toward free trade has changed due to job losses, lower wages and chinas growing presence as an export power. Immelt said were not going back to the pure free trade world but is protectionism the answer . I guarantee you we have the most to lose through protectionism. Strong words from immelt. Not unexpected given ges place as a global company. One with business around the world. And obviously, a significant amount of its revenues derived from those businesses. Well, i have to tell you that the characterization of protectionism for what trump is doing is something that a lot of the that wilbur ross would disagree with. And hes pretty sophisticated like i want felt. If korea would treat us like we treat the old level Playing Field. He does refer to it in the speech. Look is protectionism when you manipulate the currency and make it so were not as competitor . Is it protectionism when we say to ourselves, nafta was created when the peso was 41 and now its 181. No. If as opposed to the erratic nature of what i see right now coming from the white house. I mean, we have partly canada, boom. The idea of the soft lwood lumbr had been kicked around for long time but its the surprise factor. You wake up and you find canada, australia, mexico, companies that have been line countries that have been lined up with us not just politically and economically, but in defense. Yeah. For a long time. Allies. Yeah. Theyre allies. I think the concern has been since a lot of the tough talk on trade that it will devolve into some sort of a tit for tat, otherwise known as a trade war. And that warning listen, the president reversed himself on calling china a currency manipulator. The president went back to the same old same old that surprised people. We have always been easy on china. We have always been pro south korea. We have a lot of troops in south korea. Why . Because were worried about north korea. Well, it turns out the president decided that he wasnt sophisticated enough with the chinese and north korea, so then he does exactly what all president s have done. Which is say, you know what . We need the china, maybe we shouldnt be so tough on them. So i mean, i think that immelt kind of got what he wanted already. Yeah. Doubling down. Perhaps hes still concerned. No, immelt by the way he can be very global. But you know what people are thinking about the stock . What . It needs focusing on. And now you can say you can focus on two things, not unlike what amazon is doing with jeff bezos, he can focus on the web services and the retail. But the problem is, david, i think theres a restless shareholder base. No doubt. Trying to keep protectionist policies at bay is a very focused area of concern when it comes to ge. Because the business how about cash flow. Understood. There wasnt a lot of cash flow in the First Quarter. The Fourth Quarter numbers were less than stellar. The key for the company is will it be able to execute on the cost cutting that it has set out which is what a couple bill over the next two years or less than that. The stock is we mentioned many times the press of trian which is not a large share owner, but on a psychological basis is an important share owner and one with connections to many other owners as well that will conceivably pressure management if it meets the goals. Do you think that he gets the heat of tim cook gets, and i find that tim cook in the Conference Calls theres an element of disrespect to him. I dont know. Youre closer to that in some ways than theres no rebellion on the ge call. No, i have talked to shareholders who have looked at the performance over the last 15 years versus the s p and they throw their hands up. Look, my Charitable Trust owns it, id like to make more money for the charity. When dave loeb from honeywell came on and he said it reminds me of the days that ge was trying to buy honeywell and he talked about the performance of the two stocks since then. Which stock is the activist in . Honeywell up hundreds of percent and ge not. Dave cote would tell you that the hand you have been dealt needed to reshuffled immediately. Jeff immelt reshuffled and it was more about finance. It was. They like their portfolio of industrial businesses. You know, when you go to the casino they shuffle from the six decks and in the end it confuses you. Well, okay. It speaks volumes. Okay. Well, its time. Time for ge to reverse that. Thats all im saying. I have to tell you, my most of my thinking comes from trian because trian was very much in league with jeff immelt. I thought they were in agreement with what to do. You get us started on globalism and we end up talking stocks. What can we do . I guess its not as msnbc as i thought. Up next well do that even more. We have cramers mad dash. Well count you down to the opening bell and heres a look at the futures on what was a strong employment report. Good news basically all around. Up 211,000. Were back right after this. Rays always been different. Last year, he said he was going to dig a hole to china. At t is working with farmers to improve irrigation techniques. Remote moisture sensors use a Reliable Network to tell them when and where to water. So that farmers like ray can compete in big ways. China. Oh. He got there. Thats the power of and. The power of the nasdaq market. The power of 100 of the worlds top companies. The power of an etf. The power of qqq. The thinking we put in, clients get out. Power your clients portfolio at powershares. Com qqq. Before investing, consider the Funds Investment objectives, risks, charges and expenses. Call 8009830903 for the prospectus containing this information. Read it carefully. Distributed by invesco distributors inc. All right. We have an opening bell in six or so minutes from now on a friday. Lets get to the mad dash. Its not often that you have a restaurant that has minus comps, david. Im talking about minus comps where you have the ceo saying hes dissatisfied with the minus 2. 5 comps and yet the stock goes higher, but that happened with shake shack today. Buckingham a retail shop put out a a boutique, put out a report that when it was looking down. This is it. This could be the bottom. My problem is it sells at 40 times earnings but this is a company that we know has cachet. At a certain point even with minus comps people say theres a core value to it. I 40 times minus comps. Why shouldnt the stock go up when theyre down 2. 5 . Its wrong. Okay. Look, Steve Easterbrook come in, mcdonalds minus comps turns it around to positive comps. The stock goes like this. And ron shaich with panera the comps you cant just say yeah. Why are investors responding to Something Like this . People figure if it was negative comps that id get hammered and they have to clean it up. Theres a belief that the burgers taste better than the stock. They are delicious. They are. They take a very long time to actually get to you. Well, you know, through puts a problem there. Look, the ceo says no one should blame me. The ceo says im disappointed. So maybe theres this belief that once you realize hes disappointed that therefore he starts doing better. But they have big labor costs. Remember theyre in some places where you really have the minimum wage issue. Yeah. All right. Well, shake shack up unexpectedly perhaps. Well ke