Almost a week having gone by we are two, four six. We are now 2. 389. Lets get to our road map this morning. As you expect it starts with the employment number. A steady increase in jobs added last month. Unemployment ticked down to 5. 3 . Perhaps some worries as the Participation Rate slowed. As we head into the weekend, no deal insight for greece. Finance member is threatening to quit if the vote is yes. We will get information live from the market. Deals continue in health care and paypal buying zoo. Here are the numbers for the jobs. Nonfarm payroll, up 223,000. Gains in april and may, revised downward. The Unemployment Rate fell to 5. 3 a sevenyear low. The labor Participation Rate declined as low as it has been since 77. Wage growth stalled. Average Hourly Earnings came in flat. Later this morehour, we are going to look at the obama administrations numbers. We sat down here. He said not so great. Not so great on the headline number. A little disappointing. Still under 2000. They called it a goldilocks number. Not too great and not too awful. We are going to hear a lot about this labor participation. That is the share of working age people in the labor force going down to 62. 6. 432,000 people dropped out of the labor force in june. That was a surprise. It is moving in the wrong direction. For many people the question will be what the fed does now or the fed speakers, whether they continue to see that a september rate hike is still on the cards despite the fact that many think it wont be. We are going to talk to those in goldman who broke rank a couple of weeks ago and suggested no rate rise possibly until december increasingly, thats looking like the view. Another thing that the fed always watches is the wage. We had seen improvement. Pretty flat in june. Up 2 . Thats pretty much been the average we have been seeing in this recovery. Is it good enough for the fed . Last press conference janet yellen said there has been improvement in the labor market but things could get better. We are getting close to the level where they feel like inflation could start. It is arguably not there. You dont want to see it going down because people are dropping out of the laborce. It is not necessarily the right reason. I will be curious to see what mr. Paris has to say. Some are speculating what is behind that 1619yearolds and minimum wage hikes in various states. Perhaps that has kept people from entering the labor force. Or boomer is retiring. We talked a lot about disability in the past as well how many people are on disability. Lets chat more about the jobs report and how it is going to impact the market. We are heading for the worst week in three months even though futures are pointing to a higher open. Dan greenberg with us as well as ethan harris from bank of america, merrill lynch. Are we being do sour and down beat about this report or is it really sort of not that great . It is a weak report relative to expectations. It is not a terrible number. 223,000 is pretty good. The trend growth in the labor force is about 150,000. So if we keep getting 200 plus payrolls, we get a steady improvement in the Unemployment Rate. The Unemployment Rate dropped for the wrong reasons. It dropped because the Participation Rate fell. Thats a little disappointing. Wages were flat which is a pretty disappointing number there. I would say two out of three are bad here. The question dan greenhaus, i guess, is yes, weaker than expected but weak enough to take a 2015 rate increase off the fed . Exactly right. It was not a great report. 225,000 jobs is roughly what we were looking for and thats what we got. To your question i would imagine ethan would agree. One report of any, an employment construction report, doesnt move the feds thinking materially in one direction or the other. They work in trends. They work on the median term horizon. In that regard the jobs report is part and parcel to what we have had lately mediocre. That keeps the fed in play. We did have some excitement when we got certainly may at 280. That has since revised down. The bulls are suggesting that the economy is accelerating and earnings will come back in the second half of the year and the market make gains. It is not immediately obvious that that may be the case. Let me be clear. Earnings didnt go anywhere. The First Quarter earning season was great, except for energy companies. The Second Quarter is probably going to be decent except for energy companies. I know you cant do that. You shouldnt exclude any part of the bargain. Lets not pretend there was this wholesale decline and the quarter was terrible and everybody was jumping off a cliff. It was really concentrated in one area f we look over the last six weeks, the data has been surprising in the 21 ratio. The employment rate goes on the negative side of the ledger. The fed does have to look at the broad array of data. If we get the same data we have got in the last six weeks, the fed will hike Interest Rates. I agree with that as well. That isnt the goldilocks scenario we were talking about. I think we have seen an acceleration to an abovetrend growth, which is kind of a goldilocks scenario. What is the good news the fed is only heeking if the data continue to improve the way they have over the last six weeks. There is no real inflation in the pipeline the fed can go as slowly as they want to. Better Growth Without any serious inflation problems. Im bullish on the equity market. I think this report doesnt really charng really change that. To your point about trend isnt it a little disturbing that jobs were reduced by 60,000 if you look at the revisions. Most of the 223,000 job gains in june were in the service sector. It certainly is disappointing. Ethan mentioned some of the disappointing parts. Revisions is another area. We are minus 60,000 jobs. Thats not goodbye any means. The last few months are certainly not as good as we thought. You are exactly right on that nt front. The fact of the matter is that the economy is doing much better in the Second Quarter than it is in the First Quarter. We are tracking somewhere around 3 , which is not bad. It is not quite the bounceback that you saw in 2014. Pretty darn good considering what happened in the First Quarter. There is a separate conversation about how much the fed can or should hike and whether they should or can hike at all. In regards to that second point, i imagine ethan doesnt disagree, they can hike rates. Whether it is 25 or 50 basis points remains to be seen. I would think the data reports at least marginal policy. If this jobs data doesnt alter your view or fed policy, we are heading into a weekend where the greeks could vote no to the current bailout package that could start the wheels in motion to them leaving the euro. Would that change your tune about the feds trajectory on Interest Rates . I think the next weekend could be very messy even if they vote yes. If they vote yes, you have turmoil in the government and it is not clear who is going to make the deal with europe. It is going to be very messy. I hope they vote yes. That will at least give the rest of europe a reason to hold a life line out to greece. I dont think this will make a big difference for the fed in september. I think most of the greek issue will be resolved by september. Europe has a good buffer against the greek crisis. We havent seen european markets hurt very much by this. I would expect turmoil in the markets around the greek exit. I dont think it will be a systemic event that carries over into september and really affects the fed decision in september. Wow, thats optimistic. You can leave it there. Ethan harris and dan greenhaus. Good to see you both on jobs and greece of course. Lets turn to greece where clearly the countdown is on to sunday ace referendum and whether the country or voters should accept the bailout terms. Our chief international correspondent, Michelle Carusocabrera is live in athens with the latest. The rest of the euro zone should have shot down the dealings with greece. I guess the focus becomes totally on opinion polls and whats happening locally with the politician within greece now. The other european leaders have said, yes, you want a referendum go. For it. There is a poll that shows the yeses in the lead. Despite the criticism, not enough time to prepare, one week tonal debate the question is way too complicated. Preparations are underway for this ballot when it comes to getting them printed up organized, boxed, shipped out. Municipal workers have been preparing. The frames for the voters are on a truck to be sent around to the actual ballot. I have it here. This is the question. It looks enormously long because it is. Should the plan of agreement be accepted which was submitted to the European Commission and central bank on june 25th 2015 and comprises of two parts which constitute the unified proposal . The first document is entitled reforms for the completion of the Current Program and beyond. The second preliminary debt sustainability analysis. Clear as mud right. You can, if you want print out these documents. Even when they are in english, they are in greek. You need a ph. D. In bureaucratic akron nicks to understand what is being talked about here. The question is unclear. It is being read by the yes supporters as listen this is about whether or not we want to stay in the euro. It is being read by the rest of the guys this is a vote about whether or not you want to stay in the euro. To the noes the government keeps saying no this is just about us getting a better negotiating position. The rest of europe is telling them, that is not the case. A lot is riding on that. What is the next step . Europe maybe gives them another life line. Michelle whatever you think of the greek Prime Minister he is very clear in the way he often communicates. He is a fairly good or atore. Why do you think they made the question like this do you think . Because he wants a certain outcome. Do you want more austerity measures, you get a no. If the question is do you want to stay in the euro you would get a why he . If you wanted clarity, he could have asked that for sure. When you see the poll numbers when they ask about how are you going to vote on sunday, the yes yeses have the lead. When they ask all of these same people, do you want to stay in euro regardless of the measures 74 of the respondents say yes. It could be that he is looking for something that is less than clear, a little unequivocal. Not so unequivocal, basically. It is so hard to tell also from the polls, michelle. Thank you very much. We will continue to check back with you through the day into the weekend. We have breaking news on b. P. It has announced a settlement with four states and the United States over the 2010 gulf oil spill. It will pay 18. 7 billion over an 18year period. Check out shares of bp running up following the settlement aflouncement. Now announcement. Now, shares are up about 4 . This has been going on for so long. I feel like they have been in settlement talks for years. Tesla getting a nice boost. Also ahead, the labor secretary, thomas perez on todays employment report and the road ahead for job creation and, of course, wage growth. Lets take another look at the futures and where we are likely to open. We are slightly lower. Still up 23 points on the dow when we open in a quarter of an hour. Here at the Td Ameritrade trader group, they work all the time. Sup jj . Working hard . Working 24 7 on mobile trader, rated 1 trading app in the app store. It lets you trade stocks options, futures. Even advanced orders. And it offers more charts than a lot of the other competitors do in desktop. You work so late. I guess you dont see your family very much . I see them all the time. Did you finish your derivative pricing model, honey . For all the confidence you need. Td ameritrade. You got this. Tesla announcing this morning it has delivered 11,507 model model s sedans. Up 52 from a year ago. Ceo, elon musk for 55 deliveries this year. We would have to ramp up the growth rate to get to that goal including launching the new Sport Utility vehicle. It is 21,500 for the first half. Stocks up. Investors cheering on the idea of their batteries and what they will be able to accomplish in that realm, if you will. A large contingency of people question the valuation. What about all the publicity and the idea they are opening one a day and yet they are not charging for it for the line is arguably too long. I havent been on any of those lines. I dont know. They were impressed about that. I havent driven across the country yet either in a tesla. I did i was trying to remember. I did see them a number of places out west on a recent visit. There you go. There you have it. Im sure that has been settled. We can move on. Since march when the stock bottomed it is up 40 . These numbers only helping that. Whats first and foremost on his mind this morning . He joins us as we count you down to the opening bell. After the jobs report comes in a little bit weaker than economist predicted. The dow looks set to open 31 points. S p up 5 and the dow, up 11. 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Lets bring in art cashin. Yesterday, i posed a question which is no longer valid, which is what if we get a really hot employment number. 223. Not too hot, some too cold. Some say the Participation Rate is not what they had hoped for. What is your read . I think that is a problem. There was a enormous dropout in the hundreds of thousands. It is i think going to bother the fed a little bit. I am still in the camp of no rate hike this year. I think, look they have several things working against them. As much as they say we dont care about whats happening offshore, they have to care about whats happening offshore. The imf and the world bank have both cautioned, please wait until next year. To fly in the face of that. If something comes up they risk all their credibility. So im not sure that they will do anything. They could communicate that properly, it might help the dollar a bit in the sense it would be a bit weaker and help on corporate earnings as we head into the second half. I think they will have a little problem communicating it. I just think that they have a set policy now. I think fisher has convinced them that they have to tell the market that anything could happen at any time so that they are ready. You watch speaker after speaker, people used to be outright doves and some leaning hawkish. Everybody has the same thing. September is not off the hook. Things can turn around. I think they just want the markets to be slightly uncertain. They are achieving what they want. What is your prediction as to what we walk into monday morning in your eyes . I think that you may wind up with a yes vote possibly even a resounding yes vote. The pain in greece is astounding. We dont do justice to it seeing it from afar. There is hardly any money around. I think michelle pointed out the other day that they are only using big bills. The equivalent of a 100 bill. They are being done. Food is being hoarded. They are canceling medical procedures, because they are out of things called sutures. The people are being more and more upset. They are becoming more upset with mr. Cyprus. I think thats what ms. Merkel and everybody else are hoping for that they can put mr. Cyprus behind them. They think he is a little bit of a hothead and difficult to deal with. I think if they come in and there is a yes vote now, he is very intrigued with power. He will do anything he can to avoid resigning. I think merkel and everyone else believes if they get a decent yes vote he will be gone. That would be good for the markets. I think it would be. That would lead to some greater sense of compromise and then we will move on to china. There you go. I know. A lot to talk about there. Important stuff, actually. Art, as always thank you. Art cash shin. The opening bell is coming up. Labor secretary, thomas perez is on this mornings job reports. All that when we come back. You are watching cnbc squawk on the street. The opening bell is going to be ringing about a minute from now. I always turn to jim and say, whats the key to this market . I wont do that to you, sarah. Of course the key today is going to be the focus on that unemployment number or the employment report i should say. Again, art cashin saying i am not going to see a raise from the fed this year. Others certainly disagree. And greece and the big uncertainty going into the weekend over the referendum. And art raised china. I think thats an important point as well given how much destruction we have seen in the last few weeks. Just this week alone, really incredible. The government tried to is step in and see what it could do. It failed to do so. The economy not as strong as some would have me believe from what im hearing from some of my people on the ground. I wont go kneeinto details. Our last trading day of the week. You can see a real time to change. A bit more green on the board. Reacting to that employment number. Over here at the big board energizer, manufacturer of batteries celebrating spinoff. Shrink to grow. Over at the nasdaq a Genetic Testing Company celebrating its ipo today. We are going to speak, by the way, with the companys ceo in squawk alley. Thats obviously starting at 11 00. Energizer just spun off into two different businesses a household products business where the names and brands of the batteries will be one and the other will be