tv Squawk on the Street CNBC September 6, 2013 9:00am-12:01pm EDT
a lot of stuff with debt limit going up and the taper and the new fed chair that's going to be something that makes markets wonder about the upside scenario. >> syria. >> and the fed issue, you can't do ford guide and the fed can't push sglak v push. that does it for us today. join us on monday. right now it's time for "squawk on the street." 169,000 r. of nonfarm payrolls. nasty, down river revisions for both june and july. i'm carl quintanilla, david faber, jim cramer at the new york stock exchange. continued stimulus from the fed. the gold is surging. we're going to run you through all numbers. ten-year yield has come down almost 13 bases is points on the news. that would be the biggest one-day decline in more than a year. as we said, employers adding 169 on nonfarm payrolls. with private sector up 152.
june and july figures were revised lower. unemployment rate fell a notch to 7.3% because more americans gave up the search for rork. jim, we're looking for silver lunings here. not too many when you look at three-month, six-month average now that is nothing to get excited about. >> right. and everyone keeps telling me back and forth, well, wait until you see the revisions. i've done a lot of work on this number. i've looked at it for the last five years. this is it. this number does not look through. people will trade off this number. dl is nothing spectacular about it. it does come in right before a fed meeting. if the taper is going to be light. we are going to see mortgage rates down. it will be down next week. we haven't seen that in a long time. >> the question this morning is whether or not it would go to five. whether the 30-year mortgage would go to 5%. that doesn't appear to be in imminent danger now. >> going back to 4 1/2%. this is remarkable because that is a very important component of the economy we lost. keep autos. keep housing.
obviously retail couldn't have been that strong but we knew that going? >> what does this say about overall economic growth. and for thosing looking for a stronger fall, a real, you know, we've got a loft things to worry ability but those really looking for a very strong market, hence, economy also in let's call it the last three months of the year. what does this say about that? 148,000 average jobs. that is not great. on uniformly, negative reaction. >> government do nothing. next year is an election year. if our president obama take this number and say, listen, we're done cutting. we've got to start putting people on. we've got to do something to stimulate the economy. >> a pivot to jobs? >> yeah. >> that's exactly what i think. >> pivot that we would be looking at. we're going to have the white house on later on in the hour to talk about a tough vote on syria. seemingly a tough vote now on summers. and a jobs number that is, i don't know, difficult to project any strength in the fourth
quarter, third quarter. >> i agree. now, look, it's time to run against the do nothing republican congress. what do you do here? obviously this is not a great moment in the white house. at the same time, they've been putting up a good show. but i do believe labor secretary will have to answer some tougher questions. i don't think -- i think they will be rope a dope in honor of the greatest of all time. remember, do you know that he did patent geo-8 goat. >> what? >> that mohammed ali patented goa. the greatest of all time. i'm sure that we will get a story that says that things are fabulous. we don't know what we're talking about. you guys are crazy. i think we do know what we're talking about and we aren't crazy and it was not a good number. >> that means we don't have a lot of inflation. going to get the ten-year not going above 3%, to your point. >> housing back. >> we need to be in this recovery. we don't have to worry as much, perhaps. rick santelli this morning saying why is the market going up though when economic growth
is not looking good? >> because people want the bonds to behave. and there were too many people going to 3 1/4. at 3 1/4 mortgage rates go to 5.5 and every single one of these housing guys that come on and tell us things are great. we know things are not great. >> i'm sorry, not taper forever. >> what do you eat for snefr. >> no taper. >> what, i'm trying to pick stocks here. >> i was going to say. is there -- >> suddenly ideology of a right wing crazy? you're a right wing guy now, great. >> when it comes to the mayor from new york city i may be, i don't know. >> i got a guy coming on tonight an oil man, businessman. look, it's not right wing, left wing. there is a sense the fed has failed. that's the new rap you're going to hear. we're going to get a new fed chair, so good luck. this is bernanke swan song and i think that bernanke has done a good job. i recognize that this job growth is very bad. >> yeah. so is there a renewed buy then in the housing names? you say --
>> well -- >> what about going back to give dind players? >> those are where i want to be. utilities. marie interviewed frank blake yesterday. home depot, that stock has been a bad downtrend in could spur it back up. i like the pharmas. imagine the pharmaceuticals could be back here. they've done nothing for three months. the place to be. >> the smires? >> that thing goes to 43 today, you better get on board, you and your right wing pr prognostications. >> rick gets angry, i love that. >> general mills? >> you mentioned general mills yesterday. it was on the three to four. and you said the stock has done nothing. and i washoly cow, i know the margin was not that good for general mills, general mills and kellogg, that group has done nothing. it reignites today.
>> because of the jobs number. >> yeah. 3% yield. people, look, people take these things -- they just run with it. not only do interest rates unless the central banks start coming in banging them down. they're going to talk about 2.75 and 2.6 and mortgage goes to 3.3 and go buy another house, two houses. >> i'm not going to follow in your footsteps. what are we, up to eight, nine. >> you're like mccain, can't even remember. >> house wrog project. >> he doesn't no we the restaurants, bars sdl that's coming. that restaurant is coming. i'm in front of the board. >> your tequila bar when it opens. >> tequila is so old. >> one quick mention on housing that i talked to -- don't ask me why but i have talked to a number of mortgage brokers who are starting to say that 2014, dodd frank rules are going to make it more difficult for them to lend. >> at the same time -- you hear that? >> i'm hearing that the fica scores, you're going to get a break on the fica. it's going to come down a little. maybe 700. it's been 750.
i know that there was a very good piece the other day about how the jumbos are lowering. >> incredible. >> what was that about? >> i don't know what that's about. >> borrow a little bit more and get you a lower rate. >> it is good for you. get out there, man. number ten. go for two hands, full. >> i got to buy a house. >> double figures. >> i got to buy a house in brazil. brazil is coming back. >> really? >> going real well. >> i'm buying five of his houses. i want -- during the break, i'll buy homes on ebay. >> i hear you can get a good deal. >> obviously the jobs numbers are key today. we're curious to know if you have nailed the number. tweet urs yos for your predicti. i'm sure there were a couple of who did not take the over as the estimates kept creeping higher during the course of the week. whoever wins, though, very nice item. cnbc t-shirt autographed by the "squawk on the street" gang. we'll announce the winner later in the program. we tend to get someone who nails
it almost to the number. >> 100% cotton? >> good question. >> poly? >> i don't know. >> one i got the other day had poly polyin it. i was sweating bullets, man. >> not as nice as the last one, a nice bag. >> cnbc tuxedo. >> designed by j. crew? >> nicky. >> hello. >> hello. >> i just think we ought to step up. just something to think about. >> we are working on that. speaking of stepping up, maybe stepping out. ceo alan mulally said this earlier today on cnbc. >> clearly i'm actually focused on ford and we have a great partnership with microsoft, as you pointed out. they helped us and partnered with us to develop the original sync system. i absolutely love serve ourg ford. >> yesterday reuters report that ford's board is letting mulally
tell down earlier than expected. he is a candidate for the microsoft ceo position. some people said if that happened they were ready to buy. >> i still think alan wants to get to $3, $4 earnings for ford before he's done. i got to tell you, you know, he's worked miracles at boeing. he's worked miracles at forth. he could work miracles at microsoft because he could then find guys who are charged up. one of the things, look, remember, didn't microsoft buy somebody other day? >> a billion, i think. >> that's another thing mulally wouldn't go for. mulally doesn't do that kind of thing. he's got horse sense. >> even though the thinking is that ballmer has created a structure by which his successor will have little leeway to change strategically. do you think mulally can bust through that? >> ballmer has a lot of stock. >> we have an activist. i think that company is going to
be broken into three pieces. i think it should be broken. it's too big. it's not getting anywhere. >> you think microsoft should be broken up. >> should be broken up. >> i've not heard you say that before. >> it's new. the xbox business is buried within. you do a nokia and make it a cellphone company. go buy sprint. go do something wild. go buy netflix with xbox. listen to me. windows and utility, america electric power. utility. >> it has a comp for some part of microsoft? >> why not. it's got a big yield. windows business. you say that could be going away. i don't know. >> runs off a lot of cash. what are you doing with all the cash. >> you have the entertainment business. buy netflix. stock's at 300. then you've got this, you know, well, i mean, other businesses. >> you've got a lot of other businesses. you've got a lot. >> that's what nokia did. he made it so you have a cellphone business. >> maybe you should focus on breaking ge up instead of microsoft.
how about that one? >> the stock has not done that well. >> can i get you to focus on this? >> the stock has not done that much. >> it's done some things. >> what has it done? >> helpful if you own it. >> paddles. >> also keeping our eyes overseas today. reuters now reporting a kremlin aide tells them that putin and obama did speak for 20 minutes on the g-20 summit sidelines. there were no bilaterals planned, if you remember. >> 20 minutes more than thought. >> apparently no closer on syria. no surprise. we're going to hear from the president in the next hour as he gives a press conference in st. peterson berg. when we come back, the first reaction from the white house on this morning's jobs number. president's new labor secretary, thomas perez joins us live and first on cnbc. but first, there's a big reason why facebook is poised to open at 52-week highs. got a new price target with a five handle. we'll talk about that. let's look at futures as we sort of digest this jobs number here. up 169.
lower than expected. a lot more "squawk on the street" from post nine when we return. i'm a careful investor. when you do what i do, you think about risk. i don't like the ups and downs of the market, but i can't just sit on my cash. i want to be prepared for the long haul. ishares minimum volatility etfs. investments designed for a smoother ride. find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus, which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal. ♪
into new perspective this morning. sharon epperson watching gold which is surging, sharon, on the prospect of continueded in stimulus. >> that's right. and the dollar has weakened. gold prices are now above $13.80 an ounce. we're looking at this bounce in gold directly after we got that jobs data. keep in mind a lot of traders say it's not necessarily that there will be a delay in the tapering but there is, of course, that expectation that maybe we will see perhaps some delay there that has some gold traders short covering. for now, we're seeing metals across the board that is in positive territory. in fact, silver price is up nearly 2% and platinum up. watching the developments in syria as they say that has still not been fully priced in if there is a full-on attack. that is something the traders are watching as we look at brent wud r crude prices up $115 a barrel and nymex crude fuel
futures at approaching higher. watch shares of facebook today. poised to open the new 52-week highs. suntrust raising price target from $40 to $55. they expect facebook revenues to get a boost from video ads, instagram and graph search. to multiple on ebitda. what do you think? >> the video ads and graphical search. i've gn doing a lot of search on the pricing of video ads. the regular just ads on your desktop, on your mobile, shrinking. the video ads not only doing well but in some cases going high perp the price that people pay to advertise on video is not only holding up but it's the right place to be. facebook has 1.1 billion people. they are going to advertise against it. you're going see them as the next network. you're going to think of faith facebook two years from now being the biggest network it is.
>> leslie moonves talking about getting paid early by advertisers for video on the web, so to speak. in five years, let's say. that only help. >> my charitable trust hasn't helped. >> it's not a mobile story. it's video on the desktop. >> video is incredible. it's only place that you can still make money on the web. you cannot make money just serving ads because google does a thing problematic which carpet bomb the web and they don't give you any money for it. but video, they can't carpet bomb. one reason why because you're going end up against porn sites. coca-cola doesn't want to be against porn sites. target, facebook will let you target. >> stock is $24 at the beginning of the summer. up $20. >> we've got these russian billionaires, ma. >> i hope they buy the phillies. they own the nets. >> he's got a groupon. he's got alibaba.
>> he's russians, they make a difference. you buy the mets, you buy the nets, the next thing you know, winners. those guys can spend. >> watching him exit does not make you want to exit? >> no. look, greed, don't be greedy. i just think i do a lot of work because of my other job at the street, the founder. and i just cannot believe the video ads. how much you can get for them. that's a sweet spot. they've got a great video feature. instagram, too. this is -- they're smart. everyone kind of wrote them off, bad dressers, you know, ipo that was blown by nasdaq, by the way. not by facebook. next thing you know a lot of people bail. peter is a smart guy but bails at $18.90. they've got video. i think zuckerberg said, we're embarrassing. we're going to make a comeback he here. people wrote him off. >> i think they thought he was a smart guy but could he execute when challenge willed?
>> like the google guy. everyone thought the google guys didn't know what they were doing, right, because they were young people. young people rule. >> you've been saying that a lot lately. >> the world likes the young people. >> they do. one of the things i've learned is that they know more than i do. i'm down doing some homework with my daughter yesterday and said, dad, do -- i'm like, hey, where's the word key. holy cow, they're smart. >> kind of like basos told the, if you grow hold can your customers, you're woolworth. >> letter "z" is now zillow, how about that? woolworth to zillow. that's real estate porn. >> that's true. right. it's very, very -- >> not the kind you were talking about. >> anywhere you need it. mobilely, yes. you can hyper ventilate about the prices. >> oh, man. you read zillow in the privacy of your home. i know -- i don't know exactly how to define real estate porn but i know it when i see it. just like potter stewart. >> was it t potter stewart? i thought it was zeb.
>> maybe it was stewart. >> know it when i see it. i thought it was brennan. >> no, he's to liberal. >> we're going to find out who is behind it i know t it when i see it. >> that's what he said. we reason official statement from ford on the reports that alan mulally might depart the company early from microsoft. forth say ing there is no change from what we announced in november. alan mulally plans to continue to serve as ford's president and ceo through at least 2014. >> there you go. don't forget, ford, i don't have any lion on my team but he's really running the detroit lions. they better have a better year. you probably have mega tron on your fantasy league. >> my son probably does. >> i'm just watching peyton with his seven touchdowns. >> what in got's name are you doing here? >> autographed. there it is. who comes to play. >> you brought this in in honor of being only the sixth qb in league history to throw seven touchdowns in a game.
>> it's time to get big or go home. i love the unbelievable hit put on on jacoby jones by his own guy. i've been watching that all morning. manning was electric. >> has it been done since 1969. >> signed. i know, what do you think on ebay? >> whatever it is, the value has gone up today. >> don't of you think? >> yeah. >> you're going to keep that, though, aren't you? >> of course i'm going to keep it. i'm doing to retire this to the hall of fame. when we come back, cramer is always on the job, as you can see, when it comes to helping you with your money. his mad dash is next. futures on this jobs friday. a lot more "squawk on the street" straight ahead. clients are always learning more to make their money do more. (ann) to help me plan my next move, i take scottrade's free, in-branch seminars... plus, their live webinars. i use daily market commentary to improve my strategy. and my local scottrade office guides my learning every step of the way. because they know i don't trade like everybody.
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here we go. six minutes before the opening bell. time for cramer's mad dash. how did that market open on the friday, will end the week. >> fnsr, still one more optical play. blew out the numbers. going right to 30. may i suggest similar plays. cines. jdsu, just don't sell us, just don't sue us. it could come back better than ever. it's not going to go back to 400. >> explain to people what's going on when you say -- >> this is the build out. the sprint buildout, the t-mobile bill out. all of these guys need more optical and next generation
optical coming and these guys have the next generation optical. we need optical to watch all the gizmos. are you watching "house of cards". >> on my ipad mini, yeah. >> okay. >> jdsu. >> take capital expenditures by the big carriers and influx, t-mobile trying to compete. at&t still trying to catch. and verizon got to keep spending. >> isn't it something how much they've got to spend. great article on how the young people, they do not want landlines, okay? again, you need this. >> they don't want landlines. they don't want cable, either. >> well, i can't speak to that. i'm a cable -- i'm a cable guru. >> you're also a cable god. >> yes. >> yes. i'll come to your house. >> your network rely on that. you may want to get out there and talk to each one of those viewers. that's a story for another day. >> and i'm going to throw one at you. alcatel/lucent. >> not a chance. >> back from the dead. "walking dead," "true blood."
watch it on amc. >> "walking dead," i see. it's a terrorizing towns. >> you've got to hit them right in the hade. >> right now as we speak. okay. coming to a stock market near you. still to come, we have a live interview with thomas perez. he is going to talk of course about this job report this morning that most people are saying is not a particularly good one. we'll find out what he's got to say. it's also, by the way, the market's turn to react to those jobs number. the opening bell just a few minutes away. ♪
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blackhawks is an amazing team. >> yes. this season will include a record six regular season games played outdoors, which is -- >> that is so much fun. >> there is the opening bell and the s&p. as we said, the national hockey league celebrating the upcoming season. at the nasdaq, corporate resource services, recruiting and staffing provider doing the honors. for jim at the top, sort of laid out where some of the trades may be in light of that jobs number. we'll see if these things pop. >> i have tell you they go back to things that they haven't bought in a while. frank blake yesterday interviewed by maria is saying that business is good but the stock has been in a downtrend. take that to 75 right now. 75. >> looking a t some of the homebuilders here. we'll keep our eye on kb and pulte. >> weyerhaeusers sping off of housing business. this could reignite the group for now. now, remember, i'm just saying this because mortgage rates, a
lot of people felt going to 5 1/4, 5 1/2. now it doesn't look like they can. that group, we did lose that group when we went from 1.65 on the ten-year up to 3 on the ten-year. we just lost it. the homebuilders didn't want to admit it but we lost it. they could come back. we need that. autos and you get housing and you have a decent fourth quarter. i know that you just came out and said the fourth quarter, wonder where the growth is going to be. >> yes, i do. given we've averaged 148,000 jobs. the down revisions were dramatically lower for july. >> it was not. >> it was not a good employment report anyway. and by the way, the jobs being added are not particularly high quality, either. so, yeah, i would question whether you're going to continue to have a great deal of consumer-led -- >> retail is weak. i'm not going to -- >> retail is weak in some ways but others not. talked a lot about it. >> hard goods are good but reported a bad number. y joseph a. bink reported a number
that was so terrible. people are only buying half a suit there. two for one and somebody is buying half one. those numbers were extraordinarily bad. they've got to go six for one. over there they throw suits at you. >> where are you on financials? be one of the big questions is they underperformed since august even as you would think spreads were getting big, profitability would be getting better. is that now in reverse? >> they started to key up the other day. i saw, for instance, suntrust upgraded today. regional banks have been complete bow-wows. they can get out of the bow-wow chateau today. i do like the buying jpmorgan. that stock is undervalued. i think this group had lost its momentum entirely because of mortgages but commercial construction has been coming back. so maybe you get a little spur to it here. we're rotating back to what hasn't worked. for a couple days at least. don't forget china. up 73 ticks. 13.50. the copper is being restocked there. iron is coming back right there.
europe, the numbers have been pretty good. international is good. i don't know. there is just maybe a rotation going on out of some of this cyclicals but you shouldn't because of europe and china. but i need to see housing come back up. that would be really a great spur for the economy. really need that. we did lose housing. we did lose housing. >> nothing says we won't be once again trying to breach 3% in a couple of weeks based on, well, they are still going to taper. >> let's say mortgage rates come do down. people felt that it had gotten away. maybe they come back and buy houses. apparel actually had a little pep yesterday. i don't know. i think a mixed picture is a winner for stocks and not necessarily a winner for the united states. how about that? >> that i think is very cogent analysis. >> you like that? >> i do. >> a little mulist. >> it is. >> we'll keep our eye on facebook. the new $55 price target at suntrust. that's up. linkedin, despite the secondary, managing. >> just updated.
just -- more shares sold. yelp, 52-week high. i yelp. >> i started to yelp. >> do you relp? >> yes a, a little bit. >> i haven't done that well in yelp. trip adviser. >> the reviews. >> trip adviser, man, five stars. i'm serving the bagels on sunday with poached eggs which i do like the martha stewart style. i can make them like martha stewart. pour vinegar? >> nobody is better than you at lugging around bags and making eggs. >> i haven't been tipped once. >> you got the charging station. >> that's true. >> i got to test the charging station. that brings in business. eli musk likes our play. that's why he sent that car because he heard i had a charging station. now i just got to get that yelp doing better. let's talk some jobs. august jobs number is coming in slightly below estimates. 169,000 nonfarm jobs added. unemployment rate falling 7.3%.
here first on cnbc is tom perez. mr. secretary, good to have you with us this morning. good morning. >> pleasure to be here with you. >> what do you make of the number of the, more importantly, the rate falling for what some argue is the wrong reason? >> i think this is another solid and steady job report. very consistent with the trends that we've been seeing for some time. 42 consecutive months of, 7.5 million jobs have been created. 2.3 million in the last year. broad base broth growth across a number of sectors. you see people are spending money, whether it's on cars, whether it's back to school. leisure and hospitality moving up. this summer consumer confidence has been going up. so i think this is again very consistent with the long-term trends that we've been seeing of steady recovery. now, the president will be the first to say that we need to move faster. we need to pick up base.
investing in infrastructure. investing in human capital. making sure that we pass the american jobs act to put more people at work. >> these revisions, in june and july, moving down 58k in july, 16k in june. people auk about the pro cyclicality of these revisions. how much of a worry is it for you? >> if you look at those revisions, the bulk of the revisions downward are government employment. we've created the private sector has been driving this recovery. 7.5 million jobs created in the last 42 months. during that same period, 500,000 government jobs lost. that's unprecedented in a recovery. and the bulk of those jobs are in local governments. schoolteachers. my kids are going to school and their class sizes are getting larger. paraeducators are not in the classrooms anymore. the president's investment in the middle class recovery and the better bargain for the middle class, if we had been able to simply keep that number
flat like previous recessions we would have an unemployment rate under 7%. and we would have school kids who are would have better access to learning. >> mr. secretary, isn't this the time, just go to the president and say, look, i know we're not crazy about fossil fuels here but let's build keystone, get that done, get these jobs on. >> well, the president has been traveling the country talking about the better bargain for the middle class. and again, if we invest in roads, we invest in bridges, as the president said, we've got some bridges that are so old that they were humans they would be on medicare. these would create solid middle class jobs. the building trades. other really well-paying jobs would be created. so, you know, the frustration is that we know how to pick up the pace. we know what would work. we know how to get people back to work. and hopefully we can get that consensus in congress that has been elusive so far. >> mr. secretary, at this point
in president eisenhower's administration he realized he was slipping back so he comes in with something bull. republican fellow. listen, we've got to do the interstate highway system. how about something bold, something so big the republicans have to say that is such a good idea we're going to forget all of this other stuff and we're going with the president? >> again, the president in immigration, he was able to work with the group of eight in the senate. something big and bold today would be passing immigration reform because immigration reform would put people to work, it would grow the economy. it would add two years to the insolvency of the social security system. that's pretty big and bold. ronald reagan thought it was big and bold. ted kennedy and alan simpson thought it was big and bold. if we do things like that, things on the table, things that have historically enjoyed bipartisan support. investments in infrastructure. roads, bridges, that's historically enjoyed bipartisan
support. we don't want to see another catastrophe like happened in the minneapolis, st. paul area where the bridge collapsed. there are so many bridges on life support across the country. we need to come together around these much needed projects that add safety to communitys and add jobs to communities as well. >> secretary, the labor participation rate fell to 63.2%. the lowest it's been since 1978. i know there are a lot of workers who are retiring, leaving the workforce. and that's been something that the administration has kritdcitr some time. nevertheless, i'm curious if you're concerned about how low that participation rate is. >> we have a number of different measures of unemployment. and these measures take into account discouraged workers. they take into account workers who are what economists call marginally attached to the workforce. my friends who are economist geeks, they call this the -- i think the u-5 and the u-6 unemployment rates.
if you look at those trends and we collect this data, department of labor, those are trending downward over the last two years. and so when you look at those broader trends of unemployment that take into account the discouraged workers, they are moving in the right direction. they're consistent with what we've seen. 2.3 million jobs created in the last year. 7.5 million jobs created in the last 42 months. we need to pick up the pace. there's no doubt about it. that's why, you know, the president has put forth his better bargain for the middle class. and at the department of labor we work very hard on investing in skills so that people have the skills necessary to compete for the jobs of today and tomorrow. manufacturing, in health care, in education, in all of the areas where we're seeing growth in this economy. >> finally, mr. secretary, ainch workweek in july was a six-month low. a lot of people blaming that on small employers trying to avoid
the cost they might face under obamacare. do you believe that's happening? >> there's no correlation at all between the affordable care act and worker -- and employers changing hours. actually, since the affordable care act was passed, 90 paul ryan of the jobs created have been full-time jobs. you look at the most recent numbers about the number of hours worked over the past month, the number of hours worked actually went up. the employers i talked to, they know that their most valuable asset is their worker. and retaining a good worker is priceless. and that's why you look at the data and you see that there is no -- actually you look at the number of part-time workers now as a percentage of the economy, you compare it with prior recoveries in the recession and they're identical. every time we hear an anecdote, we hear anecdotes here and there, the administration has a
very good rapid response capacity to address those questions. we will continue to address questions that come up. but the affordable care act has helped lower the cost of health care. the rise in health care costs, lowest in 50 years. people of pre-existing conditions now have hope. and as of october 1st, i predict dl will be many, many more people who will be able to benefit from -- for the first time in their lives, having a decent health care insurance plan. >> a lot of people watching, watch that date. mr. secretary, it's good to have you. thank you so much. >> it's a pleasure to be here. >> secretary per reds. mean time, dow is off. mary thompson is on the floor. >> he short lived gains on the markets today. we had the dow up almost 50 points. now down 15 as we've seen a turn around in bank and stocks, semiconductors as well as retailers. nasdaq just turning negative as well. off just about half a point right now. essentially the open we saw a positive response to what many
consider to be a negative jobs report and in large part because some people felt it eased concerns about eminent tapering by the federal reserve. again, the dow has quickly turned lower. dow the declines accelerating off 21 points. of course, this could bring an toend what has been a three-day win streak for the dow industrials at the open. it looks like we may get four in a row. the sentiment is negative in early trade. ten-year note is something we've been watching throughout the week and the yield has come well off the overnight highs of 3% we saw in large part again because of the weak jobs report. that is expected to be a factor in today's trade. again, it was one of the reasons we saw the gains called in yesterday's session despite some very, very strong economic data that was released. the reaction in some of the other markets of course, we saw a pullback on the dollar of the news of the jobs report and then subsequent gains in gold as well as crude oil. a couple of stoksz we're watching. timken, it's going to spin off the steel business and timken
will remain the bearings and power transmission business. it's a victory for relational and activist hedge fund which has been working with this company for some time to spark the company. it's trading at a historic high. we want to mention the mattress firms are lower on disappointing guidance from the mattress firm. dow off 25 points. david, back to you. >> thank you, mary thompson. did want to get to a small deal. dollarwise, not that small but perhaps not that interesting. leading to shares of american tower up rather sharply. stock that, jim, you follow closely. let's get to it. $4.8 billion. american tower will be buying a privately held real estate investment trust called global tower partners or a parent company of global ntower. it's a towers deal. not particularly exciting but to your point earlier, there is another -- >> yes, it's cothe more capacit
you need, the more tower you need the more things you need to put up on the boutower and basically paying rent. >> the shorts are all over this. the deal you made in brazil. they've been saying this. jim, it's not stand-up. this is a very big deal. could change the perception. >> $3.3 billion in cash. assumption of 1.5 in existing indebtedness. will use their current revolver to pay for it and perhaps debt financing. that of course is very important point here. the ability to continue, particularly with the ten-year down today, but still we're at historically incredibly low numbers. the ability to continue to go into the bond markets and borrow at iks traextraordinarily low r refinance, pay for deals and have it be acretivo not just for earnings but cash flow. yesterday, sbriprint, $6.5 bill
junk deal. that continues, not to mention how much money verizon is going to be borrowing in the investment grade market in the not too distant future. those markets are open. probably stay open and the fact is if dl isn't a taper, only amazing. >> amazing. home depot can't lift. let's shift to, oh, to the bonds and the dollar. rick santelli, rick, i don't know if you heard it but david faber is in your camp in chicago. >> i heard a bit of it. also really enjoyed listening to labor secretary thomas perez. down here we call him mr. disparity impact perez. of course, once again, he's trying to get banks off rhythmic trading to lend to people who cannot afford it. i've seen this movie. i think he needs a really big tube of lipstick to make this number do pell with watch the "santelli exchange" today. 24-hour chart of 5s. of course, rates went down. but did that they go down
because of tapering? i will continue to not to buy into the story that the equities are. i think that the fixed income market, rates went down because it wasn't a good number. now they're coming back. look at the two-day chart of br. we talked yesterday that many of the traders down here, derivative traders and fast money traders really wanted to buy against 3%. it's the redemption boys that we have to wait to see because i think that's the driving force. you see the charts since may for the ten-year. it really has been a one-way street. and i know we're well off the 3% for now but where do we close last week? 278. still a rather large up week. let's look at the boon. boon was dabbling with their magic number of 2%. their pattern at 8:30 eastern is very similar to ours. as are all the important markets that pay attention, interest rates. see the euro currency, initial knee-jerk reaction was higher.
it's moderating. of course, if you look at the dollar index you see the mere image of that. in the end, most traders today are going to use the 2.86 to 2.89 areas of pivot. that's the low yield that held right after the number. carl, it's all yours. >> rick, thanks so much. dow is now up 111 points. that happened in a hurry. you may wonder why. p putin are now on the wires saying that he and obama are still at odds on syria but russia will continue arm sales and, more importantly, aid to syria in the event of an external attack. >> t that's it. that's why they didn't react. bonds didn't matter. because of syria, uncertainty. syria. >> even more uncertainty, the idea that the russians are going to such popport the syrians shoe launch cruise missiles. of course the debate is still going on in the u.s. congress. >> vietnam and cue back can't have this. still to come, the g-20
summit is wrapping up today in russia. we are awaiting for the president to take the podium and state his case about military action against syria. "squawk on the street" will be right back. just by talking to a helmet. it grabbed the patient's record before we even picked him up. it found out the doctor we needed was at st. anne's. wiggle your toes. [ driver ] and it got his okay on treatment from miles away. it even pulled strings with the stoplights. my ambulance talks with smoke alarms and pilots and stadiums. but, of course, it's a good listener too. [ female announcer ] today cisco is connecting the internet of everything. so everything works like never before. ♪ [ female announcer ] you're the boss of your life.
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welcome back to "squawk on the street." breaking news. i'm holding in my hand a judgment issued by the u.s. district court for the southern district of new york in the apple e-books case. in this case here a judge has issued an injiunction in the apple e-books. allegation that apple was conspireing with publishers of content to fix prices. now, what they've gone and done is they've issued an injunction. they've also prohibited apple from entering into future agreements for most favored nation's status or these preferential price agreements with these particular publishers. apple is prohibited from entering into any agreements that limit its ability to set e-book prices and a judge is also appointed an external compliance monitor for two years to review apple's anti-trust compliance policies. again, the justice department is
responding so, carl, we'll bring you more details as they become available. still, this is a big dmas terms of apple and e-book pricing. >> thank you for that. let's get to six in 60 with jim. six stocks in 60 seconds. >> william blair says there's upside, hold the buyout. this company is on hire. >> jeffries on underarmour. >> report next week. i'm surprised they started with a hold. >> chatter about dow chemical divest churs. >> this is the ppg playbook you get out of the businesses and leaves dow to have a special chemical. >> anadarko? >> it isn't acting well. i wouldn't be surprised if they come back here after putin. >> up agreed to five. >> dollar store, up $5. they report next week. gutsy upgrade by ubs. >> e trade? >> e trade are going to be able to return capital. that's the key thing we've been waiting for. very good. going to the president. >> let's get to st. petersburg and listen to president obama's
news conference. the people of russia for hosting this g-20. this city has a long and storied history, including its historic resist stance and extraordinary sacrifices during the second world war. i want to take this opportunity to salute the people of st. petersburg and express our gratitude for their outstanding hospitality. this summit marks another milestone in the world's recovery from the financial crisis that erupted five years ago this month. instead of the looming threat of another financial meltdown, we're focused for the first time in many years on building upon the gains that we've made. for the first time in three years, instead of an urgent squu discussion to address the european financial ice sis we see that europe has emerged from a recession. moreover, the united states is a source of strength in the global economy. our manufacturing sector is
rebounding, new rules have strengthened our banks and reduced the chance of another crisis, we're reducing our addiction to foreign oil and producing more clean energy. and as we learned today over the past 3 1/2 years our businesses have created 7.5 million new jobs. a pace of more than 2 million jobs each year. we put more people back to work but we've also cleared away the rub of crisis and laid the foundation for a stronger and more durable economic growth. we also making progress in put ou ing our fiscal house in order. our deficits are falling at the fastest rau rate in 60 years. as congress takes up important decisions in the coming month i'm going to keep making the case for the smart investments and fiscal responsibility that keeps our economy growing, creates jobs, and keeps the u.s. competitive. that includes making sure we don't risk a u.s. defaults over paying bills we've already
wracked up. i'm determined that the world has confidence in the full faith and credit of the united states. as the world's largest economy, our recovery is helping to drive global growth. and in the emerging markets in particular, there's a recognition that a strong u.s. economy is good for their economies, too. yet we came to st. petersburg mindful of the challenges that remain. as it emerges from recession, europe has an opportunity to focus on boosting demand and reducing unemployment, as well as making some of the structural changes that can increase long-term growth. growth in emerging economies has slowed. so we need to make sure that we are working with them in managing this process. and i'm pleased that over the past two days we reached a consensus on how to pro veed. we agreed that our focus needs to be on creating jobs and growth that put people back to work. we agreed on ways to encourage
the investments and infrastructure that keep economies competitive. nation s agreed to address tax evasion and tax avoidance which undermines burdens and shifts the tax burden to other taxpayers. we're moving ahead with our development agenda with a focus on things like food security and combating corruption. i'm pleased that the g-20 nations agree to make faster progress on phasing down certain greenhouse gasses a priority. that's an important step in our fight against climate change. during my trip we also continued our efforts to advance two key trade initiatives. the trans atlantic trade and investment partnership and the trans pacific partnership. and i believe in we continue to move forward on all the fronts that i described we can keep the global economy growing and keep creating jobs for our people. of course, even as we focused on our shared prosperity, and although the primary task of the
g-20 is to focus on our joint efforts to boost the global economy. we did also discuss a grave threat to our shared security. and that's the syrian regime's use of chemical weapons. and what i've been emphasizing and will continue to stress is that the assad's regimes use of chemical weapon isn't just a syrian tragedy, it's a threat to global peace and security. syria's escalating use of chemical weapons threatens its neighbors, turkey, jordan, lebanon, iraq, israel. it threatens to further destabilize the middle east and increases the risk that these weapons will fall into the hands of terrorist groups. more broadly, it threatens to unravel the international norm against chemical weapons pem braced by 189 nations and those nations represent 98% of the world's people.
failing to respond to this breach of this international norm would send a signal to rogue nations, authoritarian regimes that they can develop and use weapons of mass destruction and not pay a consequence. and that's not the world that we want to live in. this is is why nations around the world have condemned syria for this attack and called for action. i've been encouraged by discussions with my fellow leaders this week. there is a growing recognition that the world cannot stand idly buy. here in st. petersburg, europe and the middle east has come together to say the norm must be upheld and that the assad regime used these weapon on its own people. as a consequence, there needs to be a strong response. the arab league foreign ministers has said assad regime is responsible and called for deterrent and necessary measures against the culprit of this
crime. the organization of islamic korgs, general secretariat has called the attack of blatant affront to all religious and moral values and deliberate disregard of international laws and norms, which requires a decisive action. so in the coming days i'll continue to consult with my fellow leaders around the world and i will continue to consult with congress. and i will make the best case that i can to the american people as well as to the international community for taking necessary and appropriate action. and i intend to idea the american people from the white house on tuesday. the kind of world we live in and our ability to deter this kind of outrageous behavior is going to depend on the decisions that we make in the days ahead. i'm confident that if we deliberate carefully and we choose wisely and embrace our responsibilities, we can meet the challenges of this moment as well as those in the days ahead. so with that, let me take some
questions. i've got my handy list andly start with julie pace from a.p. >> thank you, mr. president. you mentioned the number of countries that have condemned the use of chemical weapons but your advisers say you are leaving this summit with a strong number of countries backing your call for military action. president putin indicated it may only be a handful of countries including france, turkey, and saudi arabia. can you tell us publicly what countries are backing your call for military action and did you change any minds here, president putin also mentioned your meeting with him earlier today. can you tell us how that came about and did you discuss both syria and edward snowden? thank you. >> the -- i believe that there will be a statement issued later this evening, although hopefully in time for you guys to fly back hope that indicate some of the additional countries that are making public statements. last night we had a good discussion and i want to give
president putin credit that he facilitated, i think, a full airing of views on the issue. and here's how i would describe it. without giving the details of betrying to confidence of those who were speaking within the confines of the dinner. it was unanimous that chemical weapons were used, a unanimous conclusions that chemical weapons were used in syria. there was a unanimous view that the norm against using chemical weapons has to be maintained, that these weapons were banned for a reason and that the international community has to take those norms seriously. i would say that the majority of the room is comfortable with our
conclusion that assad, the assad government, was responsible for their use. obviously this is disputed by president putin, but if you polled the leaders last night, i am confident that you would get a majority who said it is most likely, we are pretty confident, that the assad regime used it. where there is a division has to do with the united nations. there are a number of countries that just as a matter of principle believe that if military action is to be taken, it needs to go through the u.n. security council. there are others, and i put myself in this camp, as something who is a strong supporter of the united nations, who very much appreciates the
courage of the investigators who have gone in and looks forward to seeing the u.n. report because i think we should try to get more information, not less in this situation. it is my view and a view that was shared by a number of people in the room, that given security counsel paralysis on this issue, if we are serious about upholding a ban on chemical weapons use, then an international response is required and that will not come through security council action. and that's where i think the division comes from. and i respect those who are concerned about setting precedence of action outside of a u.n. security council resoluti resolution. i would greatly prefer working
through multi-lateral channels and through the united nations to get this done. but ultimately, what i believe in even more deeply, because i think that the security of the world and my particular task, looking out for the national security of united states, requires that when there's a breach this brazen of a norm this important and the international community is paralyzed and frozen and doesn't act, then that norm begins to unravel. and if that norm unravels, then other norms and prohibitions start unraveling. and that makes for a more dangerous world. and that then requires even more difficult choices and more difficult responses in the
future. you know, over 1400 people were gassed. over 400 of them were children. this is not something we've fabricated. this is not something that we are looking -- are using as an excuse more military action. as i said last night, i was elected to end wars and not start them. i've spent the last 4 1/2 years doing everything i can to reduce our reliance on military power as a means of meeting our international obligations and protecting the american people.
but what i also know is that there are times when we have to make hard choices if we're going to stand up for the things that we care about. and i believe that this is one of those times. and if we end up using the u.n. security council not as a means of enforcing international norms and international law but rather as a barrier to acting on behalf of international norms and international law, then i think people rightly are going to be pretty skeptical about this system and whether it can work to protect those children that we saw in those videos. sometimes the further we get from the horrors of that, the easier it is to rationalize, not making tough choices.
i understand that. this is not convenient. this is not something that i think a lot of folks around the wor world, you know, find an a advertising s apartment apatizing set of choices. if we're not acting, what does that say? if we're just issuing another statement of condemnation for passing resolutions saying, wasn't that terrible, you know, if people who, you know, decry international inaction in rwanda and, you know, say how terrible it is that there are these human rights violations that take place around the world and why aren't we doing something about
it, and they always look to the united states, why isn't the united states doing something about this, the most powerful nation on earth, why are you allowing these terrible things to happen and then if the international community turns around when we're saying it's time to take some responsibility and says, well, hold on a second we're not sure, that erodes our ability to maintain the kind of norms we're looking at. now, i know that was a lengthy answer and you had a second part to your question. the conversation i had with president putin was on the margins of the planry session and it was a candid session
which characterizes my relationship with him. as i said before, everybody is always trying to look for body language and all that but the truth of the matter is that my interactions with him tend to be very straightforward. we discussed syria and that was primarily the topic of conversation. mr. snowden did not come up beyond me saying that -- re-emphasize that where we have common interest, i think it's important for the two of us to work together. and on syria, i said, listen, i don't expect us to agree on this issue of chemical weapons use, although it is possible that after the u.n. inspectors report, it may be more difficult for mr. putin to maintain his current position about the evidence. but what i did say was that we both agree that the underlying
conflict can only be resolved through a political transition as envisioned by the geneva one and geneva two process. we need to move together even if the u.s. and russia and other countries disagree on this specific issue of how to respond to chemical weapons use, it remains important for us to work to the to try to urge all parties in the conflict to try to resolve it because we've got 4 million people internally displaced. we've got millions of people in turkey, jordan, lebanon who are desperate and the situation is only getting worse, and that the not in anybody's interest. it's not in america's interest. it's not in russia's interest. it's not in the interest of the people of the region and
obviously it's not in the interest of syrians who have seen their lives completely disrupted and their country shattered. so that is going to continue to be a project of ours. that does speak to, you know, an issue that has been raised back home around this whole issue. you've heard some people say, well, you know, we think -- if you were going to do something you should do something big. maybe it's not big enough or maybe it's too late. you know other responses like that. you know, what i've tried to explain is, we may not solve the whole problem but this particular problem of using chemical weapons on children, we may have an impact on and that's important to us. and what i've always said is, is that as far as the underlying conflicts concerned, unless the
international community is willing to put massive numbers of troops on the ground, and i know nobody is signing up for that, we're not going to get a long-term military solution for the country. and that is something that can only come about, i think, if as different as our perspectives may be, myself, mr. putin, and others, are willing to set aside those differences and put some pressure on the parties on the ground. okay? brianna. >> on the resolution to authorize the use of force, one of the big challenges right now isn't just republicans but it's from some of your loyal democrats. it seems that the more they hear from classified briefings, that the less likely they are to support you. if the full congress doesn't pass this, will you go ahead with the strike?
and also, senator susan collins, one of the few republicans who breaks with her party to give you support at times, she says, what if we execute the strike and then assad decides to use chemical weapons again? do we strike again? and many democrats are asking that, as well. how do you answer her question? >> well, first of all, in terms of the votes and the process in congre congress, i knew this was going to be a heavy lift. i said that on saturday when i said we're going to take it to congress. you know, our polling operations are pretty good. you know, i tend to have a pretty good sense of what current popular opinion is. for the american people who have been through over a decade of war now with enormous sacrifice of blood and treasure, any hint
of further military entanglements in the middle east are going to be viewed with suspicion. and that suspicion will probably be even stronger in my party than in the republican party. a lot of people who supported me remember that i opposed the war in iraq. and what's also true is that that experience with the war in iraq colors how people view this situation, not just back home in america but also here in europe and around the world. that's the prism through which a lot of people are analyzing the situation. so i understand the skepticism. i think it is very important, therefore, for us to work through systematically making the case to every senator and every member of congress. and that's what we're doing. i dispute a little bit, brianna, the notion that people come out of classified briefings and
they're less in favor of it. i think when they go through the classified briefings they feel pretty confident that, in fact, chemical weapons were used and that the assad regime used them. where you will see resistance is is people being worried about a slippery slope and how effective a limited action might be. and our response based on my discussions with our military is that we can have a response that is limited, that is proportional, that, when i say limit sed both in time and in scope, but that is meaningful and that degrades assad's capacity to deliver chemical weapons. not just this time but also in the future. and serves as a strong deterrent. now, is it possible that assad doubles down in the face of our
action and uses chemical weapons more widely? i suppose anything is possible. but it wouldn't be wise. i think at that point mobilizing the international community would be easier, not harder. i think it would be pretty hard for the u.n. security council at that point to continue to resist the requirement for action and we would gladly join with an international coalition to make sure that it stops. so, you know, one of the biggest concerns of the american people, you know, certain members of congress may have different concerns. there may be certain members of congress who say we've got to do even more or claim to have previously criticized me for not
hitting assad an hour saying they're going to vote no and you'll have to ask him exactly how they square that circle. but for the american people at least, the concern really has to do with understanding that what we're describing here would be limited and proportionate and designed to address this problem of chemical weapons used in upholding a norm that helps keep all of us safe and that is going to be the case that i try to make not just to congress but to the american people over the coming days. okay? >> follow-up. >> huh-huh. >> the house does not for instance, would you go ahead with the strike? >> you know, brianna, i think it would be a mistake for me to jump the gun and speculate because right now i'm working to
get as much as possible out of congress. but i'll repeat something that i said in sweden when i was asked a similar question. i did not put this before congress just as a political point or as a symbolism. i put it before congress because i could not honestly claim that the let posed by assad's use of chemical weapons on innocent civilians and women and children posed an eminent direct threat to the united states, in that situation obviously don't worry about congress. we do what we have to do to keep the american people safe. i could not say that it was immediately directly going to have an impact on our allies. again, in those situations, i would act right away. this wasn't even a situation like libya where, you know,
you've got troops rolling towards benghazi and we have a concern about time in terms of saving somebody right away. this was an event that happened. my military assured me that we could act today, tomorrow, a month from now, that we could do so proportionally but meaningfully, and in that situation i think it is important for us to have a serious debate in the united states about -- about these issues because these are going to be the kinds of national security threats that are most likely to recur over the next five, ten years. there are very few countries who are going to go at us directly. i mean, we have to be vigilant,
but our military is unmatched. those countries that are large and powerful like russia or china, you know, we have the kind of relationship with them where we're not getting in conflicts of that sort, at least, you know, over the last several decades, there has been a recognition that neither country benefits from that kind of great power conflict. so the kinds of national security threats that we're going to confront, they're terrorist threats, they're failed states, they are the proliferation of deadly weapons. and in those circumstances, you know, a president is going to have to make a series of decisions about which one of these threats over the long term starts making us less and less safe and where we can work internationally, we should. there are going to be times, though, whereas is true here,
the international community is stuck for a whole variety of political reasons. and if that's the case, people are going to look to the united states and say, what are you going to do about it? and that's not a responsibility that we always enjoy. you know, there was a leader of the smaller country who i have spoken to over the last several days who said, you know, i don't envy you because i'm a small country and nobody expects me to do anything about chemical weapons around the world. they know i have no capacity to do something. and it's tough because people do look to the united states. and the question for the american people is, is that responsibility that we're going to bear. and i believe that when you have a limited proportional strike like this, not iraq, not putting boots on the ground, not some long drawn out affair, not
without any risks but with manageable risks, that we should be willing to bear that responsibility. chuck todd. >> thank you, mr. president. good morning or good evening. i think it's still good morning for back home. >> by tonight it will be tonight. when we get back home. >> i'm going to follow up on brianna's question because it seems like these members of congress are simply responding to their constituents and you're seeing a lot of these town halls. it seems as if the more you press your case, the more john kerry presses the the case on your behalf, the more the opposition grows and maybe it's just -- or the more the opposition becomes vocal. why do you think you've struggled with that? you keep talking about a limited mission. we have a report that indicates that you've asked for a expanded list of targets in syria and one military official told nbc news, characterized it as mission
creek. can you respond to that? >> that report is inaccurate. i'm not going to comment on operational issues that are sourced by some military official. one thing i've got a pretty clear idea about is what i talk with the chairman of the joint chiefs of staff agent about and we have talked about is something limited and proportional that would degrade assad's capabilities. in terms of opposition, chuck, i expected this. this is hard. and i was under no illusions when i embarked on this path. but i think it's the right thing
to do. i think it's good for our democracy. we will be more effective if we are unified going forward. and, you know, part of what we knew would be it will some politics interjecting themselves in -- no, i said some. but what i have also said is that the american people have gone through a lot when it comes to the military over the last decade or so. and so i understand that. and when you start talking about chemical weapons, and their proliferation, you know, those images of those bodies can sometimes be forgotten pretty quickly. news cycle moves on. frankly, if we weren't talking about the need for an international response right
now, this wouldn't be what everybody would be asking about. you know, there would be some resolutions that were being proffered in the united nations and the usual hocus pocus but the world and the country would have moved on. trying to i'm pampart a sense o urgency about this, why we can't have an environment in which over time, people start iing this we can get away with chemical weapons use, it's a hard sell but it's something i believe in. a and, as i explained to brianna, in this context, me making sure that the american people understand it, i think, is important before i take action.
john. >> thank you, mr. president. one of your closest allies in the house said yesterday, when you got 97% of your constituents saying, no, it's kind of hard to say yes. why should members of congo against the will of their constituents and is support your decision on this? and i still haven't heard a direct response to brianna's question. if congress fails to authorize this, will you go forward with an attack on syria? >> right. and you're not getting any direct response. brianna asked the question very well. >> it's a pretty basic question. >> i was going to give you a different answer? no. what i have said and i will repeat is that i put this before congress for a reason. i think we will be more effective and stronger if, in fact, congress authorizes this action. i'm not going to engage in
parlor games now, jonathan, about whether or not it's going to pass. when i'm talking substantively to congress about why this is important and talking to the american people about why this is important. now, with respect to congress and how they should respond to constituency concerns, you know, i do consider it part of my job to help make the case and to explain to the american people exactly why i think this is the right thing to do. and it's conceivable that at the end of the day, i don't persuade a majority of the american people that it's the right thing to do. and then each member of congress is going to have to decide if i think it's the right thing to do for america's national security and the world's national security, then how do i vote? and you know what, that's what
you're supposed to do as a member of congress. ultimately you listen to your constituents but you've also got to make some decisions about what you believe is right for america. and that's the same for me as the president of the united states. there are a whole bunch of decisions that i make that are unpopular, as you well know. but i do so because i think they're the right thing to do. and i trust my constituents want me to offer my best judgment. that's why they elected me. that's why they re-elected me even after there were some decisions i made that they disagreed with. and i would hope that members of congress would end up feeling the same way. last point i would make, these kinds of interventions, these kinds of actions are always unpopular because they seem distant and removed.
i want to make sure i'm being clear. i'm not drawing an analogy to world war ii, other than to say, when london was getting bombed, it was profoundly unpopular, both in congress and around the country, to help the british. doesn't mean it wasn't the right thing to do. it just means people, you know, are struggling with jobs and bills to pay and they don't want their son or daughters put in harm's way. and these entanglements far away are dangerous and different. you know, to bring the analogy closer to home, intervention in
kosovo, very unpopular, but ultimately i think it was the right thing to do and the international community should be glad that it came together to do it. when people say that it is a terrible stain on all of us that hundreds of thousands of people were slaughtered in rwanda, well, imagine if rwanda was going on right now and we asked should we intervene in rwanda,ic it's fair to say that it probably wouldn't poll very well. so typically when any kind of military action is popular it's because either there's been a very clear direct threat to us, 9/11, or an administration
uses various hooks to suggest that american interests are directly threatened, like in panama or grenada and sometimes those hooks were more persuasive than others but typically they're not put before congress. and again, we just went through something pretty tough with respect to iraq. so all that, i guess, provides some context for why we might expect people to be resistant here. >> your deputy national security adviser said it was not your intention to attack if congress does not approve it. is he right? >> i don't think that's exactly what he said, but i think i've answered the question. major derrick. >> thank you, mr. president. those of us who remember covering your campaign remember you saying that militarily will the united states act not just importantly what it does but how it goes about doing it.
even when america sets its course it's important to engage in international community even as its pursuing that action. i wonder you leave here and return to washington seeing the skepticism there, hearing it here with any different ideas that might delay military action? for example, some in congress suggested giving the syrian regime 45 days to sign the chemical weapons convention, get rid of chemical stockpiles, do something that would enhance international sense of accountability for syria, but delay military action. are you, mr. president, looking at any of these ideas or are we on a fast track to military action as soon as congress renders its judgment one way or the other? >> i am listening to all of these ideas, and some of them are constructive. i'm listening to ideas in congress and i'm listening to ideas here. but i want to repeat here, my goal is to maintain the international norm on banning
chemical weapons. i want that enforcement to be real. i want it to be serious. i want people to understand that gassing innocent people, delivering chemical weapons against children is not something we do. it's prohibited in active wars between countries. we certainly don't do it against kids. and we got to stand up for that principle. if there are tools that we can use to ensure that, obviously my preference would be, again, to act internationally in a serious way and to make sure that mr. assad gets the message. i'm not itching for military
action reca action. recall, major, i have been criticized for the last couple of years by some of the folks who are now saying they would oppose these strikes for not striking. and i think that i have a well-deserved reputation for taking very seriously and soberly the idea of military engagement. so we will look at these ideas. so far at least i have not seen ideas presented that, as a practical matter, i think would do the job. but, you know, this is a situation where part of the reason i wanted to foster a debate was to make sure that everybody thought about both the ramifications of action and -- >> so currently the only way to enforce this international norm is militarily and even giving us the assad regime extra time would not achieve your goals? >> what m si'm saying, major, io
far what we've seen is a escalation by the assad regime of chemical weapons use. you will recall that several months ago i said we now say with some confidence that at a small level assad has used chemical weapons. we not only sent warnings to assad but we demarched, meaning we sent a strong message through countries that have relationships with assad that he should not be doing this. and rather than hold the line, we ended up with what we saw on august 21st. so this is not as if we haven't tested the proposition that the guy or at least generals unhis
charge, can show restraint when it comes to this stuff. and they've got one of the largest stockpiles in the world. but i want to emphasize that we continue to consult with our international partners. i'm listening to congress. i'm not just doing the talking. and if there are good ideas that are worth pursuing, then i'm going to be open to them. i will take last question. tangy, afp. >> thank you, mr. president. yesterday night you had two unscheduled bilateral meetings with your mexican counterpart after voiced very strong concerns about being allegedly targeted by nsa. what was your message to them and do you engage relations that countries relations this summer and make it harder for you to build confidence with your partners in firms such as this
one? >> i did meet with president russof as well as president of brazil and mexico, respectively, to discuss these allegations that were made in the press about the nsa. i won't share with you all the details of the conversation but what i said to them is consistent with what i've said publicly. the united states has an intelligence agency. our intelligence agency's job is to gather information that's not available through public sources. if they were available through public sources then they wouldn't be an intelligence agency. in that sense, what we do is similar to what countries around the world do with their intelligence services. but what is true is that we are
bigger, we have greater capability, you know, the difference between our ca capabilities and other countries, probably tracks the differences in military capabilities between countries. and what i have said is that because technology is changing to rapidly, because these capabilities are growing, it is important for us to step back and review what it is that we're doing because just because we can get information doesn't necessarily always mean that we should. there may be costs and benefits to doing certain things and we've got to weigh those. and i think that traditionally what's happened over decades is the general assumption was,
well, whatever you can get, you just kind of pull in and then you kind of sift through it later and try and figure out what's useful. the nature of technology and the legitimate concerns around privacy and civil lib beerties means that it's important for us on the front end to say, all right, are we actually going to get useful information here and, if not, how useful is it if it's not that important, should we be more constrained in how we use certain technical cape its. now, just more specifically then on brazil and mexico. i said that i would look into tall investigations. part of the problem here is we get these through the press and then i've got to go back and find out what's going on with respect to these particular allegations. i don't subscribe to all of these newspapers. and although i think the nsa does, now at least.
and then what i assured president mouseff is that i take these allegations very seriously. i understand their concerns. i understand the concerns of the mexican and brazilian people. and that we will work with their te teams to resolve what is a source of tension. the last thing i would say about this though is just because there are tensions doesn't mean it overrides all the, you know, incredibly wide ranging interests that we share with so many of these countries. and and there's a reason why i
went to brazil. and there's a reason why i invited president rousseff to the united states. it's an important country. it is an amazing success story in terms of a transition from author tear yammism to democracy. for two largest nations in the hemisphere to have a strong relationship, that can only be good for the people of our two countries as well as the region. same is true with mexico. one of our closest friends, allies, and neighbors. and so, you know, we will work through this particular issue. it does not detract from the larger concerns that we have and the opportunities that we both want to take advantage of. all right? thank you very much, everybody. thank you, st. petersburg.
>> that is the president wrapping up his press conference of the g-20 in st. petersburg, russia. almost an hour long in which he did say he would address the american people on syria from the white house on tuesday. said he was encouraged by discussions with g-20 leaders in russia but clearly he and russia's putin do not agree. said he realized it was going to be in his words, a pretty heavy lift trying to get congress to come around, as well. our john harwood has been listening to the press conference all morning long and has some analysis. john, he was pressed several times as to what he would do if congress voted it down. fine f finally said, you will not get a direct question. >> he had no intention of answer that question. i have to say this is one of the least effective public performances the president has had because you can see him struggling out loud with a policy that he's decided is necessary but goes against his instincts and the public's
instifri instin instincts. by making statements about the necessity of action. what we didn't do in rwanda. something of particular concern of his national security ood vizer susan rice when he served in the clinton administration. she regretted that ever since. saying you absolutely have to act and you you have a moral commitment to act. on the other hand, nobody wants to do it. and the rest of the world says, well, we're not sure right at the last minute when it comes time to act. well, you could look at what happened with the president last week and say he had that same moment last friday evening when he surprised his staff by saying we're going to go to congress. now he's finding out, as he said in the news conference, what a tough, heavy lift it is to get this done. i still think he's got a chance, a pretty strong chance actually to get it through the house as well as the senate. it's not easy. he's struggling with it. we could all see it. >> john, obviously the race is now on in particular to win over the house. he said when the members of congress has the full security
briefing most often they are against military action because they they're it's a slippery slope potentially. given that within the last hour vladimir putin has said if russia is attacked, beg your pardon, if syria is attacked, russia would come to its aid. does that change the calculation on getting the motion through the house in particular? >> i'm not sure. i think that critical thing, simon, about the possibility that president pulling this out is getting members out of their home districts and back in washington. i was just in midwest city, oklahoma, with a republican member tom cole who everywhere he went in his district was getting pounded by people saying stay out of syria. the leadership of the congress is counting on members getting back here, being in a different environment, not hearing from everybody on the street, to then fall in line behind the administration, the intelligence briefing. some of the leaders of both of their parties and say, you know, what it may not be popular but we've got to do this. the president has got to hope that works. >> john, thank you very much,
john harwood, live from washington. let's go bag to st. petersburg for more reaction. cnbc steve sedgwick is standing by. steve, what are you able to tell us? >> simon, i want to pick up on your line, if i may. i think there was a reporting exactly faithfully what you just said. if attacked we will come to syria's aid. i want to give the viewers the entire segment that president putin said, i think it puts it in a bit more context and is his furious, less aggressive than perhaps one line on its own stands. in answer to reporter question, while president obama was speaking, president putin said the following. will we help syria? we will and we are already helping. we send arms. we cooperate in the economic sphere, in the humanitarian aid as well. that is where we cooperate. and we will support these people, the civilians who have found themselves in a dire situation in this country. i think it's a subtle difference from if attacked we will go to their aid because i think what they're saying is the status quo continues, we supply them with billions of dollars worth of
arms already and we will continue to do so. i'm not entirely sure whether what president putin said today was an of thing of the rhetoric. i know the markets have taken fight and sold off fair gresively on concerns of escalation of this price sis. it could be a question of interpretation. i think what putin was saying was comments i've seen previously which is reiteration of the support he has for the al-assad regime. not that it was some form of limited u.s. led strike they could go to extreme levels and give more aid to support syria against the potential u.s. i think there is a subtle difference there, simon. >> sthank you, steve. on that very question on the cnbc news line this morning camel is a middle east analyst. ayham, good to have you with us. we are struggling with what putin was trying to say. we know russia does provide some aid to syria. do you believe that would materially change if there was an external attack? >> i think there's a constant
flow of aid here. not just diplomatic support. arms. helping the assad regime remain coherent to prevent. u.s. intervention should not seek to oust assad. limiting this strike what would do and trying to pressure the u.s. and creating more challenges for the u.s. back home and president for the himself. >> the president said regarding putin, i don't expect us to agree, although in his words, it's possible after the u.n. report it might be more difficult for putin to maintain his current position. how surprised would you be if that happened? >> well, i think the u.n. -- knowing it is going to wait for the u.n. report over here, the issue is about sendings assad a very clear signal and message right now. with the content of the report, what it leads to doesn't matter. i don't think this would be a subject that would affect the president's decision to strike. >> ayham, i'm curious how that speech itself, the way that the
president spoke, the extent to which the international community is watching, and it followed putin's rather striking remarks about supporting syria. has that changed at all, has that re-enforced the view of the president dithering here? is that important? >> i think the president is determined to take military action, right? he has the challenge right now in creating a clear narrative to that congress could actually support his plan. it has to be very limited. the parameters of what the u.s. would do, the risks involve has to be very clear to house members, why this should be u.s. policy. i think the president has challenged its own likelihood of the date. it's a little bit less than it were yesterday but i think on balance the president is moving forward with this agenda. >> all right. ayham kamel, thank you for your take on that this morning. keeping an eye on markets
here as well. off the loews. down 130 points roughly at the worse of the session this morning. that was just after putin's remarks. now off 30 points. s&p 500 and nasdaq are showing small gains. we will break down from th remarks to the jobs report that we also are still digesting. "squawk on the street" is back after a short break. neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it.
welcome back. let's get straight to the big news this morning. the jobs number. employers adding 169,000 nonfarm jobs in the month of august with private sector payrolls up by 152,000. the june and july figures were revised sharply lower. steve liesman has more of the details. >> thanks. i think the most important number for verse on wall street is the decline of the unemployment rate. that came largely because people dropped out of the workforce. this presents a quandary for the federal reserve. talk about that in a second. here are the numbers kelly just gave you. august shops up 169. that june/july revision down 62,000. unemployment rate down a tick unexpectedly to 7.3%. earnings okay. average workweek up a bit. participation rate declining.
lowest participation of the population in the workforce since 1978. the unemployment rate dipping to 7.3%. halfway to where the fed forecast it would end all quantitative easing. it was attributed to the 300,000 who dropped out of the workforce. is there really that much slack in the worse force or have people dropped out for good. pantheon says it should be enough to taper. rdq, says it's disappointing. high frequency economics saying the weight of evidence is strengthening in the labor market. here are the details. manufacturing up 14,000. but the big goose egg on construction is noticeable with questions about how higher interest rates are affecting housing and housing employment. retail up another strong month, three in a row now, 44,000. information technology a big down, 18,000. temporary up, and a big number for government. the biggest we've seen in quite some time. all of that, however, local
education. i'm siding with the notion that this number is just good enough to prompt the fed to taper, but it could come with some palliative guidance about future tapers being none of them or rate guidance. i guess that goes back to simon. >> that fascinated me, steve, because actually job growth is -- isn't the point that job growth is slowing in this country? the last three months we've generated 148,000 jobs a month. and the 12-month average is 184,000. job growth is slowing. how can the fed stop tapering if it is data dependent when it was looking for an acceleration in job growth? >> i think the fed would say we've had a lot of improvement since they started this about a year ago. i think they believe that they have helped the market out a bit. the job market and the stock market. and i think they would say that a taper is not a tighten, and i think they're going to pound that, and i think they want to be off of this mark here, simon. i think they have just enough
data. the isms were good, jobless claims are doing pretty well. there may be some sense this current number understates the strength of the job market. >> i guess ism is forward looking, this is slightly backward. let's bring in two more economists for their views on this very important jobs report. john is chief economist with moody's capital markets research. diane swank also joins us. she's, of course, chief economist and senior managing director with misrow financial. diane, what are you telling clients? >> i look at this report and what really struck me was the point you made, that decelerating momentum in the job market and that is an issue and it will muddy the waters regarding the taper. it means the conference will be really focused on defining what gradualism means, and it's a really coin flip now whether they actually do it or not because of the muddied waters, and also they're going to have to really lay out a road map of where monetary policy is going. that road map will give institutional momentum to
monetary policy at a time when there's uncertainty about who will be sitting around the table come january. >> you're saying they may not start tapinger in september. >> it's now a coin flip. i lean a little bit, maybe 51%/49%. it's a difficult call. the lost momentum is very important and the fact we lost a lot in the private sector. the private sector had looked much more strong. we've seen a couple months where we have seen this downward revisions. we should be at the stage of the economy right now where we're capturing jobs we've been missing and momentum is picking up. and although we did have some good data this week and i think there will be a better fourth quarter, this is a real issue. >> mr. longski, there's some who say if the fed is worried about the efficacy of quantitative easing, that this jobs report and the weakening trend may reinforce theirs point of view. do you think that it's possible that the taper is still on? that the fed is moving towards just forward guidance and trying
to keep rates down if that's what's needed to keep the economy afloat here? >> well, i don't think that this employment report was weak enough to rule out a september start to tapering, though i think it had the affect of reducing the probability from an 80% likelihood to 60% as previously noted. the debate surrounding the start of tapering in september will only intensify. >> we only have about ten days, so is it just too soon to that event, john, or do you think at this point the fed is already thinking about keeping in place the plan it has seemed to have and that charlie evans seemed to indicate as well this morning? >> well, i think investors ought to expect the fed to announce a start to a winding down of quantitative easing at the september 18th meeting of the
fomc. quite frankly, the bond market is still -- has still priced in an end to quantitative easing, and i think that's very much going to prove to be the case unless some extraordinary event happens between now and the next fomc meeting. >> sincere thanks to both of you for bearing with us this morning. diane, john, have great weekends. thank you. >> you, too. still ahead jan hatzius will weigh in on today's number. the dow is five points away from going back to the flat line. we're back in a minute. t trackin and hearing everything from our marketing partners, the media and millions of fans on social media can be a challenge. that's why we partnered with hp to build the new nascar fan and media engagement center. hp's technology helps us turn millions of tweets, posts and stories into real-time business insights
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♪ we're live at post 9 at the new york stock exchange. the jobs number, of course, at 8:30 eastern time was a little disappointing at 169,000, then shortly after that putin in russia at the close of the g-20 saying that he would -- russia would continue to provide aid to syria in the event of an external attack. a lot of people trying to decide what exactly that means. the dow has been all over the map we were up 50 points, then down 120, clawed our way back to the flat line. here is a look at the dow up 9 points, s&p up 4 at 1659.
the dow coming back after being down triple digits earlier. oil and gold another big story. gold rallying on the notion that perhaps the fed does continue to provide some support, make it a smaller taper in september. we will see. and the ten-year which earlier came back almost 13 basis points for a while there, kelly, was the biggest intraday decline on the yield in more than a year. >> it was below that 2.9% level. we're getting a flight to safety bid there both on the jobs report, a little bit of geopolitics as well. let's start with the jobs report and take a closer look with jan. good morning. >> good morning. >> the jobs report shy not just what the market thought but what you guys thought as well. what happens from here? >> i mean, i think in terms of the economy, i would say you want to look at the jobs report, but you also want to look at some of the other information that's been released this week which generally has been pretty good, ism, claims numbers have
been pretty good. in general it seems to us that things are going at a decent pace. we think the economy is starting to pick up a bit. still fairly slow but we still feel quite comfortable with the idea that 2013 will be significantly stronger than 2013. on the policy side, of course, that's the immediate question, what does all this mean for the fed at the next meeting in a week and a half. our expectation is still that they taper -- >> and by how much? >> $20 billion or a little less. i think one way of making it a dovish taper would be to reduce the amount. one way would be to combine the tapering with a reinforcement of the forward guidance. you know, the unemployment rate, of course, came down. that was the one optically very strong part of this report, but that's a little at odds with the rest of the report.
so i think it strengthens the notion that you might want to either lower the unemployment threshold or -- >> but you said -- >> -- introduce additional conditions that need to be met before you start hiking, even when the unemployment rate is down to 6.5%. >> you've been telegraphing that for a while. >> i expect some changes. whether it's going to be an outright reduction in the unemployment thresholds, that i'm not sure about. i think the alternative is to, for example, put more weight on inflation being back at the target. right now it's 1.2%. or more weight on employment to population ratios, labor force participations. they're already talking about all those things but you could go further in that direction. >> at this point a lot of people are saying it's 6.5% and that's what matters and it's fed officials themselves that have been focused on this number and if we hit it in 12 to 18 months' time then -- it was earlier this week that people were talking about rate hikes. >> sure. >> is all of that off the table?
>> oh, i don't think so. i mean, i think the market is still pricing in if you look at the feds funds futures contracts, hikes sometime around year end 2014, maybe early 2015, and i think a lot of that has to do with the fact that the headline unemployment rate has continued to come down. i think it's in the interest of fed officials to send a pretty strong message that it's not fo formulaic. chicago fed president evans said that it's conceivable that the unemployment rate is going to be below 6% before they hike. it's going to depend on a lot of factors. >> why have these isms been such a head fake. people were extrapolating a 300,000 number, a 250,000 number for today. >> i would never extrapolate an unemployment -- an employment
number just based on one indicator, and i think, you know, plotting, say, the employment component of the nonmanufacturing ism against payroll numbers and saying this could be a 300,000 number, you know, i do think you want to take other things into account. i would still view them as genuine pieces of information, but ones that you want to down weight because there's a lot of other information that's available. >> are you worried that the stock market is decoupling from the u.s. economy and that fed policy has managed to lift stocks here, not necessarily address this longer term structural problem and at this point that that divergence will continue to grow wider? >> i mean, i think stocks are not just a function of the strength of growth. i mean, if that were the case, then i think there would be quite a big decoupling because the economy is not going that strongly, and yet stocks have been in a pretty impressive bull market, but i think there are other other things that matter for what happens in the stock market.
>> buybacks. >> monetary policy, corporate factors, buybacks, things like that. if you take all of that into account, it doesn't seem to me that stocks are decoupling from the broader environment. >> jan, it's good to have you in on an important day. >> nice to be here. >> the dow is climbing back from a 148-point loss earlier this morning. now in positive territory by 20 points. let's get some views from zane brown and burt white, chief financial officer at lpl financial. guys, good morning. >> morning. >> zane, just want to start with you. we mentioned stocks have come back. the ten-year has fallen back below that 2.9% after hitting 3% earlier. as jan was just saying, perhaps this employment report hasn't really been a game-changer. so what do you think happens now? >> well, i think the employment report doesn't take tapering off the table. it doesn't support an aggressive tapering along the lines of what was just suggested, along the
lines of $20 billion. they could take $5 billion or $10 billion off, but the weakness behind this number in terms of private payrolls being only 152,000 and an adjustment to the previous employment report in july suggests that they need not get too aggressive here with tapering and pull it back as soon as many people are now suggesting. >> burt, what about you? >> what jumped out at you about today's number and how important is it? >> it was a bad report. i don't think it was that great of a number. and there was some good components to it. you know, you look at full-time jobs was pretty good and the workweek was pretty good but by and large it wasn't that great. what we think is going to happen is likely tapering is going to happen, but it's going to be a lot smaller. it will be taper light, and i think there's an increased chance here that you just get another statement from the fed that says, we will taper soon in september. so i think it's a coin flip on whether they taper, but if they
do, it's going to be a light amount of taper. >> zane, we were talking offcamera over the next couple weeks we'll have to get through this white house address from the president on tuesday a vote in congress whenever that happens. obviously fomc is not far behind that. how are pms positioning at all going into i guess monday morning? >> well, i think they've got to be pretty neutral because you don't know what's going to happen with syria. behind that, you really don't know what's going to happen with the summers announcement at some point, and i think today is the weakness in the jobs report really calls into question how aggressive tapering can be justified. i think we'll still get it, but taper light is a great way to characterize it, and i think $5 billion to $10 billion is probably what we'll see. >> burt, are you using these periods of weakness in the market, whether it's because of some of the geopolitics, syria issue, the remarks we saw this morning from putin which sent the market down 150 points, are you buying and telling people to buy on those dips? >> yeah. we are adding to risk here. and one of the reasons we're
doing so is because the forward looking economic data, like ism, is looking a little letter. we think the economic picture is getting better. when you get some of these opportunities, it's an opportunity to really think about adding a little bit to risk. one of the things to look at is some of these interest rate sensitive names that have really gotten hurt. the one thing that happened with this report is getting above 3% on the ten-year is probably going to be pretty tough between now and when the fed speaks next. so you might see a rally here in things like home builders and mlps, even utilities. it's one of the areas we've been looking at, but longer term we're still careful about waiting to see what happens when the fomc meets. >> how short term are we talking here, burt? >> i think over the next week or two you could see things like home builders rally. they're up over 1% today and we've got a relatively big position in that and that's helping us. we think that could rally a bit as they have been weighed down by some of the interest rate concerns and move through the 3% ten-year rate, but if that
doesn't happen, we could see that really some of these might actually move a little bit over the next week or two, but we wouldn't get too aggressive. >> moving already today, we were just showing kb home up almost 4%. burt and zane, thank you both for your thoughts this morning. have a great weekend. >> dow is up 21 points. here is a question, what can a million bucks track you? we are tracking down the best million dollar homes. first, rick santelli is taking on the jobs number. >> we're taking it on, but i think labor secretary might have said it best on cnbc when he said, i think this is another solid and steady jobs report. i have a present for the labor secretary. it's a little bit of lipstick because i don't care how much of this you put on that porky of a report, it's still porky the pig. and you want to see all of this and more in about ten minutes. u. [ babies crying ] surprise --
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welcome back. president obama with some stropg words on syria at the g-20 this morning. cnbc chief washington correspondent john harwood joining us now live from washington with more. john? >> reporter: kelly, the president has tried for most of his administration to focus on recovering from economic crisis and make the economy grow. he went to russia for this g-20 meeting focused on the economy, but the emotional backdrop was all syria. his effort to rally support both internationally and within the united states for military strikes in response to the use
of chemical weapons, and that was the case today when he came out for a news conference and said he'd be exhorting other world leaders to rally behind what he's trying to accomplish. >> what i have been emphasizing and will continue to stress is that the assad regime's brazen use of chemical weapons isn't just a syrian tragedy, it's a threat to global peace and security. >> reporter: and you know what a difficult challenge this is for the president when he holds a news conference on the day that the unemployment rate has fallen to the lowest level of his presidency and as my cleolleagu ed henry reminded me, not a single one of our colleagues asked about it at this news conference this morning. >> that's a good point as well. there's so many different things which markets are trying to digest. >> i have a question about the political capital we're watching him try to spend, and the effect it's going to have on his ability to get through a summers vote if that's what he wants. the kind of debt ceiling vote he
wants to have happen. what is the affect on the rest of the domestic agenda over the next month and a half. >> reporter: i think at this moment you have to say the odds favor him in the senate. leadership aides tell me they still expect it will pass in the house, but you're seeing members every day come out and say that they're opposed to it. strong constituent reaction against. tom kohl, the member who i spent some time in oklahoma with, said he felt the fact that it's not such a partisan debate, that you have leadership in both parties in one camp, that that could depart sannize to nom degree some degree some of the budget debates. it may make it easier to kick the can down the road a bit, but i think it's hard to predict until we know how the votes fall next week. >> well put. john harwood this morning from washington. john, thanks very much.
stick around because rick santelli has been prepping all morning to take on today's jobs number and you don't want to miss that. "squawk on the street" will be back in two. you know throughout history, folks have suffered from frequent heartburn. but getting heartburn and then treating day after day is a thing of the past. block the acid with prilosec otc,
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all day today on cnbc we're showing what you a million bucks can buy in the way of housing, and in the theme of back to school, we're focused on the homes in ivy league neighborhoods. we sent eight cnbc reporters to eight northeast ivy league towns to check out a million dollar home. here is how it works. we show you what homes side by side and the reporters do not reveal their locations. in the last round the waterfall wonder near cornell lost to the urban rooftop near u penn. that home goes up against the stately estate.
>> this four-story contemporary town home is 27 feet wide. it sits on a lot totaling more than 2600 square feet. there's a two-car garage, two terraces, and a 50-foot landscaped backyard. >> this two-story colonial sits on six acres of land plus an additional 2 acres behind the house. the backyard has an olympic size swimming pool and a screened in patio. >> open staircase leads to the kitchen which is the heart of this 4,000 square foot home. in the kitchen you will find granite countertops, custom cabinetry and stainless steel appliances. >> the 12 rooms total over 3,600 square feet. it's got a formal dining room, an office, a living room with a fireplace, and just down the hall from this kitchen is the attached two-car garage. >> the master suite has every amenity a homeowner could hope for. there's a terrace a double sink, a soaking tub, a walk-in and a linen closet. beyond the master, there are two
bedrooms and 2 1/2 more baths. >> upstairs are five bedrooms and three baths. the master suite has a walk-in closet and it's own outdoor patio. two of the other bedrooms have their own sun porch. perfect for reading the morning papers. >> but it's the top level that truly makes this town home unique. there's a rooftop with complete skyline views a hot tub, and a wet bar. this architect's masterpiece home is on the market for $1.1 million. >> for a historic home, it has a lot of light and open space. the sun room has panoramic views of the property. all yours for $975,000. >> all right. you went to college in virginia. doesn't that kind of look like virginia. >> i was going to guess a richmond, virginia, kind of feel. >> old colonial. i don't know. joining us for the big reveal, real estate broker to the super rich dolly lenz joins us at post 9. it's good to have you back. >> thank you. >> do we guess or can you tell
us? >> we can guess. >> well, you heard mine. >> williamsburg? >> it is in yale, new haven, connecticut. so it's a gorgeous house. they're both really beautiful properties. they're so different that it's hard to pick and analyze between them because one is the urban digs and one is the stately old establishment colonial. so we had to really dig deep to compare these and to pick a winner. in terms of property values, i think that you have to look a lot further than just the house. you have to look at other opportunities they afford. so the stately colonial gives us the opportunity to have three different parcels. the parcel the house is built on which is a two-acre parcel, a separate parcel which is four acres that's developable or saleable, and 23 acres that's protected lands to protect your views. so in the end i think if you're really digging deep and looking at all the numbers, you fact you
could have this home for $975,000 or less, already a 17% price reduction from when it came on the market, and sell off four acres and keep the money, the winner is yale. >> you're going with the stately estate. here is the problem. you need to use those proceeds fr to maintain the property. that's a lot of upkeep. >> but i have to tell you, look what you get for it. you get a beautiful home. you get a swimming pool. you get all that land permanently unobstructed views. when you dig deep into the numbers, it makes dollars and cents sense. >> does that mean that you in general favor suburban properties over urban properties? >> i in general favor urban properties but this is a special situation because of the acreage that you can sell off or develop yourself. >> and do you think if it were you, would you split it off or keep it as one piece.
>> i would keep it as one piece but i would develop it. >> there is your round three winner. let us know if you agree. you can catch dolly in the "fast money halftime report" at noon. later, she will crown the top ivy league home with maria bartiromo. >> bells are also about to sound across europe. when we come back, we will get you full details on the close. how markets there took the jobs report and geopolitics straight ahead. don't go anywhere. higher level, tdd#: 1-800-345-2550 then schwab is the place to trade. tdd#: 1-800-345-2550 call 1-888-284-9410 or visit schwab.com/trading to tdd#: 1-800-345-2550 learn how you can earn up to 300 commission-free online trades tdd#: 1-800-345-2550 for six months with qualifying net deposits. tdd#: 1-800-345-2550 see how easy and intuitive it is to use tdd#: 1-800-345-2550 our most powerful platform, streetsmart edge. tdd#: 1-800-345-2550 we put it in the cloud so you can use it on the web. tdd#: 1-800-345-2550 and trade with our most advanced tools tdd#: 1-800-345-2550 on whatever computer you're on. tdd#: 1-800-345-2550 also, get a dedicated team of schwab trading specialists tdd#: 1-800-345-2550
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welcome back. simon hobbs is joining us now with a look at european markets. simon? >> yes, and actually it's a good close around europe. we're green almost entirely across the board as a result of what's happened today, a lot of volatility in the session overall. we moved initially on the employment report, then we got president putin's comments. and for the week overall it's an outperformance on european equities against what's happened in the united states. at some point i'm hoping i can show you a map or, i don't know -- should we go through the charts? what do you think? let's go through the charts and just show what's happened today. there is the european map. there you see the sea of green across europe, and they have had a better week overall than we've had here in the united states. let me show you a session chart of what has happened on france and germany so far today. see the way we rallied on the
disappointing employment report meaning that fed action is likely to continue. they fell on the putin comments that they would come to the aid of syria and then you subsequently have the bounceback there as well. so a much more elevated kind of reaction to the day than you've had here in the united states. i expect you want to play the bongs now. no. >> european markets are closing now. >> what's interesting today is the sector that's moving the most is the defensive sector. the big utilities in germany and in italy are higher. look at these percentage gains. partly on upgrades that you're getting from the analysts, but also in particular in germany it looks like they're going to get pricing power back into their market. let me just show you for the week overall, the point i was trying to make earlier on and that was the outperformance you had from european equities. here you can see europe, the white line up 2.8%. for the dow up 1.6% in the united states and the main
reason for that is the fact that on labor day when we were shut down for the public holiday, europe rallied very strongly because over the weekend obama had said that he was going to go to congress on syria and, therefore, syrian action was much less likely. and whatever they might tell you, the europeans are much more embroiled in the middle east and arguability tably the profitabi the middle east. jpmorgan is suggesting it's unlikely the italian government will fall but i won't take you through the analysis now. >> let's get a check on energy and commodities. sharon epperson with a busy day at the nymex. >> oil prices wof $110 a barrel and we're seeing after president obama's speech that we are looking at a premium on all the events we're seeing in the middle east. some traders say it might be as much as a $10 premium. others say maybe just a $5 premium and maybe it should be more considering we're still
waiting to see whether or not we're going to have it fully priced in if there is a full-on attack and how much higher that could go in terms of the oil price for wti and for brent. because of all that is happening in the middle east, we're seeing high volatility in the oil markets as well. if you look at where the ovx is right now, we've seen quite a bit of volatility over the last several weeks largely due to the situation in syria traders are saying. no one wants to be short that market with this kind of uncertainty. in terms of what we're seeing in the metals market, look at gold prices and silver as well near highs of the session as the dollar has retreated. the jobs data being disappointing and also the fact that perhaps we will not see tapering happening in september. that is one of the factors traders say that has happened gold and silver prices. others say it's just a matter of short covering and for real upward momentum we need to see gold prices above that $1,400 level. so that's the key technical level that traders are watching. we'll have much more, of course, on the metals coming up at 1:30 at the close. >> want to get to phil lebeau
with breaking news. it seems like there's news from everywhere today on ford. >> this is news ford investors have been waiting for a long time for. standard & poor's have put ford and ford motor credit back in investment grade status for the credit righti rating. they have been moved to triple b minus. they are citing the fact that ford has a more diversified and robust revenue stream not only in the united states with auto sales and the credit financing operation of ford mode krmotor credit but also with mobile cells. they cite the growth they are experiencing in asia and china in particular. ford and ford motor credit now back to investment grade status in the eyes of standard and poors. first time we've seen that since 2006. >> and, phil, just to remind people about some other rating agencies, have they not made previous moves just like this one with regard to ford.
>> fitch has done this in the past. standard & poor's was one that ford was waiting on. >> that's big news for ford which has already had a lot of headlines regarding mullally's future status. thanks so much. >> now let's bring in mary thompson with a look at what's moving down here at the big board. mary, the story just seems to be the fact we've regained from a low of 150 points in the session to now up 40. >> a 200-point swing in the dow jones industrial average today, and right now we are back on track to see the fourth straight day of gains. the markets took a hit with president putin saying he would continue to provide military aid and humanitarian aid to syria. that caused the markets to sell off. on review traders were saying, listen, this isn't anything different than what he said before. that's caused the markets to recover. what we're seeing today as we look at some of the market leaders today is strength in the utilities which have been under pressure lately because we have seen this climb in bond yields. bond yields retreated after that weaker than expected jobs
report. energy also a leader because we continue to see gains in crude oil today. again, on syria concerns. let's take a look at the ten-year because, of course, overnight it do touch that 3% level selling off again on the weaker than expected jobs report which raised expectations. maybe the fed won't begin its tapering as soon as expected. who were some of the groups that are benefiting from this? home builders, which have been hit hard since the may comments by bernanke who indicated at that time that that would begin tapering or withdrawing its statement lu stimulus. we're also seeing strength in reits. to the downside though, banks continue to be under pressure in large part because, remember, this is a cyclical group. the jobs report, while not as strong as some had expected, that's keeping some pressure on this group. in particular the regionals are underperforming the broader markets or broader banking stocks today. right now among the groups it's
the only one we followed that is looking a little weak. we want to end on quicksilver. this is a retailer to the teen an surfing group. came in with results better than expected. a number of analysts coming out with positive comments because they say it is a turnaround story. it's a big winner on the big board. guys, back to you. >> the green arrows continue after we got past europe closing. rick santelli with "the santelli exchange." >> i want to hit a point before i go to the whiteboard that we talked about yesterday, and that is if you look at that drop in the labor force participation rate to 35-year lows going back to the carter administration, going back to my waning days of college, well, if you look at the chart, the average on that chart of the labor force participation rate is probably in the mid-60s. so if you use mid-60s number, what you do is you create a 4%
nonsolution, meaning the difference between 7.3% and 11.3% because that's what the unemployment rate would be. why does anybody care? i'll tell you why. because that spread represents human beings that are not working. but, of course, they aren't consuming. they're not doing a lot of things that you can't cover up. you could say it's 7.3%, but the flavor, the feel, and the performance of the economy think gdp reflects otherwise. now let's go to the white board. seasonally adjusted. remember, the household survey lost 115,000, okay? which gave you some shrinkage in the labor force of 312,000, which got you to that 7.3% unemployment rate. here is that 35-year low i was referencing at 63.2 that i moved up to 65 to give you that 11.5% real unemployment rate. and adults not in the labor force, a subset, 516,000. you think that looks good. let's go to nonseasonally adjusted.
civilian labor force shrunk by 1.25 million. if you look at u6 unadjusted, 14.6%. here is one i find fascinating. multijobs, meaning jobs splitting, that was up 141,000, but there is one bright spot in this report. at least in this report we created more full-time and part-time jobs. that hasn't been the norm. and check this one out. year-over-year total of those not in the labor force, 1.677 million. that's a big number. now, we talked earlier about how the labor secretary called this a solid report and i wanted to give him a little present with regard to a lipstick, but, unfortunately, i don't think this is big enough. so i think i'm going to get him a real present here. i think that if you want a lipstick big enough for this big, i think that this might do the trick. labor secretary perez, it's going to be fed exed tonight. back to you. >> rick, i don't even want to know how you made that lipstick
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coming up neck on "the half", the markets are volatile. how does it all factor into the great taper debate. an all-star lineup of traders and investors are with us. and is one of this year's best stocks still a buy? plus, what is tesla really worth? the valuation guru who called the top in apple has crunched these numbers. it may surprise you. we'll see you in 15. >> thank you very much. let's get over to dominic chu with a quick market flash. >> kelly, mattress firm shares are anything but. they're very soft in trading today after giving investors the negative trifecta. that's an earnings miss, sales miss, and a lower forecast, hence that share price drop. the mattress retailer is sharply lower in trading. this was a stock that was up 67% so far just in 2013.
so perhaps, carl, a bit of profit taking. >> thank you, dom. speaking of profit taking, check out facebook today. the stock rallying this morning. i think this is probably a new high, 4402 just off the record high of $45. suntrust raising its price target to $55 based on monetization of instagram. robert joins us this morning. great to have you. good morning. >> thank you for having me. >> you talk a lot about some things that we don't know a lot for certain about. the instagram monetization where they still say they're about building users, video ads, waiting for specifics. what makes you so confident. >> one is talking to industry participants. as we built up our forecast, the way we did it was we looked at a slow rollout starting in 2014 and building more momentum to 2017. ultimately all three of them
having about a 10% or so lift to our total revenue estimate. >> you mentioned the optionality regarding the user base. what do you mean by that? >> so the big key is facebook. we really haven't seen something like this before. whenever you have a platform that reaches 1 billion people or so daily, any new product, any new feature you put out can have -- a small little change can have a huge impact on the financials. you can see it in the numbers today. we're talking about three new products being rolled out. >> at the same time, bob, we're talking about -- aside from instagram, you're also talking about graph search and being able to monetize that in the future as people use it more. i have to say anecdotally, people don't really seem to love it, they're not sure it works that well. is facebook really going to gain traction? >> it's a great question. in our note we put a couple examples in there. i'm sure you have seen friends say i'm going to atlanta for the day. does anybody know any good sushi places and people will rereply.
that's a perfect direct query to monetize against. i think overall you probably trust your friends and family's opinion more. >> you're using a nine multiple on revenue, 20 on ebitda. how does that compare with the rest of the peer group? >> we look at perpetual growers that grew north of 30%. what i think is interesting is facebook here just reaccelerated growth from the mid-30s to over 50%. i think as you layer more of these services on top of it, you could see some pretty high growth rates higher than that 30%. >> you mentioned video ads specifically and we had this discussion earlier this morning about whether that is a mobile phenomenon truly or whether there's still some benefit to the desktop when it comes to what would be a new video ad service? >> and in our note we focus
solely on mobile. but i do think there will be a benefit to the desktop as well. that will just be ancillary. >> in terms of -- people are looking for risks. one of the first ones that gets mentioned is the expiration of lockups. zuckerberg can start selling i think it is this month. the worry that sheryl sandberg gets a better gig somewhere else. we know she's been selling some stock. why are you so confident that manage at least either won't start selling or won't start leaving. >> i'll never know exactly what's going to happen but we try to look longer term and bigger picture. we get a lot of our confidence by talking to the industry participants, the people using facebook, the marketers, advertisers that are using these products every day. they're the ones that give us confidence on where facebook is going. >> and finally, when did you institute the buy? how much of this $120 run over the last 12 months have you been able to take advantage snf. >> yeah. our initiation was july 15th. you can probably look it up there. it was in the mid 20s or so. we were very bullish pret the
quarter. >> it has been a remarkable year for them. especially for those who doubted it at $17. robert, thank you so much for your time. interesting note. robert peck an analyst at suntrust on facebook. >> thank you so much. up next, here is one for you. is the current ceo of ford looking to become the new ceo at microsoft? that's a look at alan mulally. we'll have more on this after a short break. to make their money do more. (ann) to help me plan my next move, i take scottrade's free, in-branch seminars... plus, their live webinars. i use daily market commentary to improve my strategy. and my local scottrade office guides my learning every step of the way. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade... ranked "highest in customer loyalty for brokerage and investment companies."
welcome back. ford's ceo alan mullally is playing down reports he could leave the company earlier than expected amid rumors he's a possible candidate for the microsoft ceo position. mullally telling cnbc he's focused on ford. phil, just rumors? is there anything to this? >> i'm not sure how much there is to this, kelly. really, there's two stories here. the first one being will allen mullally step down as ceo of ford sooner than 2014? the official response from ford and from alan mullally is no, we're happy with this arrangement, but i have talked with people in the company and it's clear if alan decides at some point i have done everything i can do here, it's time to move on, the board is not going to stop him. officially ford issued a statement today saying there is no change from what we announced
in november. alan mullally continues to plan to serve as board president and ceo through at least 2014. so why has his name been floated as a possible successor to steve ballmer at microsoft? keep in mind allen mullally, he really was key to ford incorporated more technology in their cars and trucks. he came in as ceo in late 2006. he worked with microsoft auto. they debuted sync in 2007. that's been the leader in the auto industry in terms of in-car connectivity. this is an ironic photo our producer megan reader came up with. it's alan mullally presented steve ballmer with a fusion in 2009, a light blue metallic fusion. it's the one millionth fort with sy sync. sort of ironic on this day of all these rumors floating around to see this picture of these two
gentlemen floating around. it would not be a huge stretch to see him go to microsoft, although i don't think he's pursuing it actively. take a look at shares of ford versus microsoft. since alan mullally took over ford in 2006, the stock is up more than 100%. in that same time frame, shares of microsoft up a little more than 20%. so, guys, that sort of gives you some perspective on where this is at. i know you will hear a lot of people say this guy is a car guy, an airplane guy, why would he be interested in running a tech company? the complexity is not the issue. the real issue is whether or not alan mullally could see a growth pattern for the future and would he want to take on the challenge of microsoft. i'm not sure any of us know the answer at this point. >> very interesting. you could hear the wheels turning. it would return him to the pacific northwest, a bunch of other things to think about. but certainly provocative and good for them. i'm sure some cartwheels being done in dearborn today.
there's someone out there who is very happy about the number, the payrolls, the person who is winning this incredible t-shirt signed by all of us. we'll talk to the winner of "nail the number" in just a minute. thank you orville and wilbur... ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it.
i'll tell you who is winning. after sorting through our viewer guesses, one tweeter who nailed the number with a guess of 169,000. brendant teeley is the winner. >> good morning. >> 169, estimates were creeping up and we were seeing guesses way on the over. you went back to the charts. how did you come up with your guess? >> i looked at patterns and the history specifically of 2004 to 2011 and looked to see if any patterns emerged, specifically looked at revisions, and to your point exactly, there were some
very optimistic estimates thrown out there, and i just knew from a sense, the revisions have been always to the worst, and, you know, we've seen a lack of participation in the labor market which put the number down even further. >> what's interesting is so many people when they win and we ask them, how did you come up with the number, they're like, took a wild guess, took a stab at it. you're saying you did a little more than that. >> i suppose at some level all predictions are a guess or hopefully an educated guess anyway. >> it sounds like you're still maybe a little bearish on the labor market going forward. you think this participation rate really is sort of undercounting the number of people who have fallen out of the workforce? >> i think if you really took, and they never will, but i think if you took a real survey or had a real number of people who
either had the job they wanted or have the job they're qualified for or doing what they wanted to do, you know, the unemployment number would be much, much higher, and, of course, that creates kind of an anomaly. but i just don't think that it's as rosy as some of the numbers show. >> congratulations. you're the winner of these amazing t-shirts. we cannot guarantee they're machine washable and that kelly's signature won't bleed when you put them in the laundry. >> there's a surprise. >> i saw cramer wrote boo-yah. it's hard to write on these things. >> there's a bit of an art. i think you will get a his and a hers shirt. >> excellent. >> we send them both i think. >> that would be great. >> thank you so much, brendan, for playing along, and good luck in the future.
although lightning rarely strikes twice. >> we have had repeat winners, believe it or not. people who won a couple months in a row. >> this is my first shot so. >> brendan, thanks so much. >> beginner's luck. >> appreciate it. meantime, dow is up 33. rock 'em, sock 'em session. >> we've been up and down. people have been saying this is old school volatility. also want to mention quickly elon musk, the brain behind tesla and space x now showing what he can do with his hands. he's released a new video where he demonstrates designing rocket parts by using hand gestures. he's zooming in on a virtual model of a rocket engine saying he was inspired by a scene in "iron man 2." it's all getting a little bit meta. >> he gets more and more tony stark-like every day, does he not? >> who is more interesting to
follow? is it -- we have to figure out how it plays into the next "iron man" franchise. >> finally, we will have a lot to deal with next week. the president speaking on syria on tuesday, perhaps a congressional vote and the fomc not far after that. have a great weekend and your travels. >> that's right. i will see you monday after next. >> let's get back to headquarters. scott wapner and "the halftime." thanks. welcome to "the halftime show." four hours to go to the close. take you right to the wall. yes, we're positive now. it's been a top si tur va day. the dow is up 32. watching the ten-year yield back towards 3%. we continue to watch that story. here is what wear following on "the half." electric shock. how much are your tesla shares really worth? the man who nailed apple is back with the math and the numbers. well, they may be shocking. net gains. is one of the markets top performers auy