Treasuries went up. A little concerned, perhaps, about the stock market. Now, we know one executive whos presumably looking for a new job today, Tim Oshaughnessy saying hes stepping down this year. Living social is not publicly traded, but there are a lot of guess about them being questions about them being the big competitor to groupon. Target now telling us that its data breach was worse than previously thought. As many as 70 million customers had their personal information compromised. Target also lowering Forward Guidance. Its shares are moving down just a few percentage points, but its sears getting slammed today after it also lowered its guidance. That stock down more than 12 . A little later on were bicycle to speak to speak to sears public enemy number one. He took photos of empty sears shelfs. He says sears has gone from a sick patient to one who is now in critical condition. We, of course, invited sears executives to come on, they declined, so im going to fight brian. Theres some good things about the allamerican brand. Were digging, were mining for those, were going to fight it out in just a minute. But investors and traders really believe this bad jobs number, if they did, shouldnt the markets be down more than they are . Lets take you to the floor show, Nicole Petallides in the thick of it at the new york stock exchange, our commodities expert, sandra smith, here in new york today, and, of course, our floor show traders, ted weisberg, gary kozlowski. Nicole, we begin with you. Look, down 30, 40 points, that, to me, doesnt look as bad as the jobs appeared on the surface. Right, and the jobs number, obviously, was atrocious, only 76,000 jobs added. That Labor Force Participation rate is really horrifying. It Shows Americans werent looking for jobs at all. They were disgruntled, they didnt believe they would get one, they were too cold, whatever reason. We saw, as you noted, bond yields dived down like missiles going from nearly 3 to below 2. 9 , right now at 2. 86 . And what happened . People started buying dividends, dividendpaying stocks, and the Home Builders have been rallying, take a look at some of the names, most of the 16 names in that group actually have up arrows, and that is all on the belief that the fed now will not taper as quickly as some thought that they may. We know in the last round that they tapered by ten billion. Its interesting, right now most of the names in the book, dr horton up 1. 7 , lennar up 2 , and so is toll brothers. In the meantime, the major market averages have been pulling back to a certain extempt. Liz and, sandra, one thing thats rallying has got to be gold, up 17 in the after market. Forget that, silver is besting it. Copper looks pretty decent too. Well, silvers definitely been more volatile than gold, and that trend definitely continues today. But gold, which really lost its luster in 2013, first annual drop in 13 years, sort of seeing that change a little bit today with that jobs report, that flight to safetys back, growth concerns are back. You are seeing gold up more than 15 back above that 1200 an ounce. So this is the best gain weve seen in a week and, by the way, gold finishing the week with a weekly gain, very important to point that out because one day doesnt make a trend, but a week certainly could. So a lot of folks are going back to gold. Liz, its sort of that trade that believes now maybe the fed wont taper as quickly as the market had anticipated, and thats why were seeing those dollars go back into precious metals. So gold, silver really outperforming the market today. Liz i think that perceptions wrong. I think the tapering, if they start to go back on it, it makes them look like theyre on the hook for every single tick of data. I want to get to the floor show, since we started the show, we have pared our lasts on the dow in half, the nasdaq, russell and s p are all positive, whats going on . Liz, youre right on the money with your evaluation of the fed. I dont think theyre going to change course. It would be almost impossible for them. I think the dye is cast. The die is cast. Tapering is going to be the drill from now until theyre done, until they get to neutral. And in terms of the market, you know, the averages are down, but when you look at the screens, theres as much green as there is red on the screens. I think were all a little spoiled, you know . Weve been on this positive bias almost every month for 2013 but two, and i think we get a few bad days, and everybodys kind of looking at the exits, and i think perhaps p thats premature. I dont think the overall market is as bad as the averages have been indicating for the last four or five days. Liz gary, we showed a slight flight to quality, you could call his a mosing. Yes, the treasury yields went down and the price went up, but do you think thats going to be extended monday when everybodys saying, well, maybe that number just was a oneoff . Well, youve got to look at the volume levels first, and i always bring that up. There werent a lot of people in the market today as anticipated especially with the jobless number that we had. So what were going to be looking at monday is youre going to get a lot of people scratching their head saying, you know, is this a buyin time perhaps . Everybody was looking at it to reach 325, possibly 350 by mid year, and what did it do after it got up to that key three level, it pulled back down on this weak number. And as far as the tapering is concerned, im a little bit more on your side, i hate to say it, i really think that theyre going to maybe instead of going ten billion at a shot, theyll stick their toe in the water and say well do this little five and show weve still got some confidence going on this. Liz okay. Now we bring it to energy because when we had the deep freeze just a few days ago here in new york, we started to see natural gas well above 4 per unit, were still there, six cents above. But im just wondering as we start to see a little mist which means its getting warmer on the east coast, what happens then . Well, we can see what happens with the price on natural gas. It came off hard. However, i dont think the winters over, so i think were in an oversold situation with natural gas, and think weve seen the low around the 3. 95 level which was last night or if its going to get to a low, around 3. 88 to 3. 91. I think from here we start to rally out, and i think were going to get to the 4. 40 level on natural gas. Liz teddy, natural inclinations of the market, when do we see what we know has to be coming, and that is some type of correction where a little air is taken out of what is now a very stretched we can call it a balloon, sure. We can just call it a ball, i dont know. At some point dont we see that, and is it in the month of january, february . Well, liz, listen, if we knew that, wed probably be off on our yachts someplace, and we wouldnt be here talking to each other. But, you know, i think everybody thinks theres a contraction here somewhere. Unfortunately, theyre not going to ring a bell. And its going to happen for reasons that you and i and your viewers least expect. But theres no question, you know, that were pretty stretched on the upside here. And so were due for a pullback. The good news is that at least for the benefit of 20 20 hindsight, every selloff that we saw last year turned out to be a buying opportunity, and i think until that proves not to be the case, you just have to buy the dips when they come. And, yes, they will come. Man, we just showed such a pretty fiveyear chart of the Dow Jones Industrials through an unbelievably difficult time. There it is. And those divots around 2012 and, you know, 2009, 2010 really smooth out over time. Gentlemen and sandra and nicole, we thank all of you. Weve got that closing bell ringing in 52 minutes. Todays jobs report, caught unawares, caught all the highly paid wall street economists by surprise. But what about the Labor Department . Labor secretary thomas perez joining us next live. Were going to not only delve into the numbers, because it was a weak number, but were going to ask him this why have nearly 350,000 people disappeared from the work force . Its called the participation rate, and it has just dropped. And expelled from harvard. Weve learned former sac Capital Advisers manager whos on trial right now Matthew Martoma cheated at harvard and so was booted. A judge has ruled it can be admissible. It began with the Opening Statements today. All that and much more straight ahead right here on countdown. [ female announcer ] who are we . We are thinkers. The job jugglers. The up allnhts. And the ones who turn ideas into action. Weve made our passions our lifes work. We strive for the moments where we can s, i did it we are entrepreneurs who started it all. With a signature. Legalzoom has helped start over 1 million businesses, turning dreamers into business owners. And were here to help start yours. Over the piz place on Chestnut Street the modest first floor bedroom in tallinn, estonia and the southbound bus barreli down i95. This magic moment it is the story of where every great idea begins. And of those who believed they had thpower do more. Dell is honored to be part of some of the worlds great stories. That began much the same way ours did in a little dorm room 2713. This magic moment open to innovation. Open to ambition. Open to boldids. Thats why n york has a new plan dozens of tax free zones all across the state. Move here, expand here, or start a new business here and pay no taxes for ten years. Were new york. If theres something that creates more jobs, and ows more businesses. Were open to it. Start a taxfree business at startupny. Com. Liz that jobs report which surpriseo the downside is the big talking point today on wall street and perhaps main street too. So heres what markets did. They were mixed following that number, a disappointing reading of 74,000 new jobs added in december. Thats way below wall street expectations of about 196,000. Thats what people thought. So you have most prominent banks and their economists strategying their heads strategists scratching their heads. Look on the screen, deutsche bank, all of them expecting numbers in the high 190s or 200,000 range. So what is behind such a wide miss, and could next months report be better or even worse . Joining us now from washington, d. C. , tom perez, hes u. S. Labor secretary. Thank you for joining us, secretary perez. The number had the socalled smartest guys in the room on wall street scratching their heads which does make some people wonder what happened here . Are they wrong . Is the number wrong . Or is the economy really faltering way worse than we expected . Well, obviously, the number was less than we expected. We always want to see higher numbers. But at the same time, its always important to put this in perspective. One month does not make a trend. Whenever the number is high in one particular month, im always looking in the context of prior months. You look at the last three months, weve averaged 177,000 jobs including 241,000 jobs last month. Finish you look over the last 46 months, weve had 46 consecutive months of private sector job growth to the tune of 2. 2 million jobs last year. So i think what this report shows and what the trend data, more importantly, you know, the economy continues to move in the right direction, number one. We have to pick up the pace of growth because were leaving too many people behind, and then most immediately to me what the numbers show is that congress has to get to work and complete the process of expanding extending the emergency Unemployment Compensation program. Because longterm unemployment, you know, remains at or near historic highs, and this is not the time to discontinue can this critical lifeline for 1. 3 million people. Liz i look at these numbers, and one thing surprises me. We had a very solid november number. It seems like the Mainstream Media tend to question a really good number and yet give a lot of credence to a bad number. I dont think thats fair, but on the other side, mr. Secretary, it really bothers me to see that while over time in 2013 the average number of jobs created was 182,000, so that holds up the continued 40, 46 months of job creation, and yet thats roughly in line with 2012. So it almost looks like were stuck in the water or just plateaued. Shouldnt we be improving from 2012 to 2013 and, i would hope, 2014 . Well, i think we are improving. And, again, you know, the trend data, i think, bears that out. At the same time, you know, the president has said many times we need to pick up the pace of growth, and he has a plan for doing that. And it involves infrastructure investment, you know, our roads and our bridges, passing Immigration Reform which the cbo and others have said would grow the economy, investing in skills which is so critically important. I hear from so many employers, liz, that they want to grow their business whether its advanced manufacturing or in the health care context, but they want to make sure that people coming through the door have the skills to compete. Thats the business of the department of labor, is making sure people have those skills to compete. These are the things we need to be investing in. If we did all that, we could easily pick up the pace of this recovery liz okay, but even further. Liz look, youre in a fight with at least some on the right about extending jobless benefits. The administration would like to do extension of emergency benefits. Some republicans are saying thats not a good idea. Make the case at least to some of the people out there who feel that Unemployment Benefits are a crutch and leave people to say theyre continuing to search for a job but respect really or they wont take but arent really or they wont take a lesserpaying job. We need people to understand theyve got to start lower once again and work their way up. Make that case. You know, i spent this week with you have roughly two dozen longterm unemployed. And when i hear the argument that theyre not looking hard, theyre lazy or theyre not willing to take a job that is below their pay grade, that is just so inaccurate. And, frankly, this sort of blame the victim mentality that i see among some, youuknow, is really i find it a bit offputting. And the thing that the longterm unemployed that i spoke with this week said that bothers them the is the suggestion by some that theyre not looking hard. I mean, i had people who have said, you know, i cant get a job at walmart even though i have a College Degree because they think if i took that job, ill leave in a week when i get the other job that im looking for. Theyve said that they cant get a job at the skill that they had before because there arent enough jobs out there. Theyre looking hard. And if we want to maintain the attachment to the work force, having that lifeline of emergency Unemployment Compensation is critical because, as you know, liz, one of the requirements of receipt of emergency benefits is that you continue to look for a job. Liz true, right. And thats why congress has on a bipartisan basis five times during the Bush Administration with no Strings Attached extended it. And thats why its so critically important to do it again next week. Liz five times under the Bush Administration, an important point. Look, were all americans, we want this country to do well. Well be watching it. Thank you so much. Great. Thank you and have a great weekend. Liz you too. Tom perez, u. S. Labor secretary. Closing bell ringing in about 40 minutes. Former sac Capital Advisers manager matthew mar toma getting his day in court on Insider Trading charges one day after we learned he cheated at harvard. Next, Charlie Gasparino and i will ask the attorney who took sac capital founder steve cohens deposition and how this revelation could impact the entire case. And its an allout twitter war over the embattled retailer, sears, which has just cut Forward Guidance today. The stock analyst who launched this campaign with us live. Is sears really in a death spiral, or is it just trying to grow out of its pain . Im fighting it out with brian zazi, next. [ female announcer ] you get sick, you cant breathe through your nose. Suddenly youre a mouth breather. A mouth breather how do you sleep like that . You dry up, your cold feels even wors well, put on a breathe right strip and shut yr mouth. Cold medicines open your nose over time, but add a breathe right strip, and pow it instantly opens your nose up to 38 more so you can breathe and do the one thing you want to do. Sleep. Add breathe right to your cold medicine. Shut your mouth and sleep right. Breathe right. Afghastan, in 2009. On the u. S. S. Saratoga in 1982. [ male announcer ] once its ened, usaa Auto Insurance is often handed down from generation to generation. Because it offers a superior level of protection. And because usaas commitment to serve current and former miliry members and their families is without equal. Begin your legacy. Get an au insurance quote. Usaa. We know what it means to serve. Liz so you heard yesterday that sac capital portfolio Mathew Martoma who is on trial for allegedly trading on inside information for the nowembattled hedge fund was expelled from Harvard Law School in 1999 for in the most detailed and convoluted way fudging his transcripts to try and get a job as a clerk. How did he slip through the cracks at sac when the firms founder, steve cohen, said that compliance is of extreme importance . Listen to the deposition to see just how much cohen knows about compliance at the hedge fund he founded. This was back in 1992. Doesnt matter. That wasnt my question. Youre the head of sac. Thats correct. And you take not trading on Insider Information critically. Absolutely. Have you ever taken it upon yourself to read the rules . I rely on my counsel. Is the answer, no . I might have read em, i just dont remember. Who was that boy talking to him . Well, Charlie Gasparino joining us with that man, michael bowe bowie. Liz im sorry. [laughter] anyway, you were the guy w