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tv   Squawk Alley  CNBC  June 3, 2016 11:00am-12:01pm EDT

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kayla and the squawk team. >> meanwhile, it is 8:00 a.m. in fayetteville home of the walmart shareholder's meeting and 11:00 a.m. here on "squawk alley." ♪ ♪ when i'm feeling down ♪ so i turn around ♪ oh, baby don't care no more ♪ i foe this for sure good friday morning, everyone. carl is on assignment, but jon fortt has made his way back to post nine. glad to see you. >> good to be back. >> and also this hour, we will have mike santole and business insoo insider and founder henry blodgett, and good friday to
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you. we have to start with the rough may jobs report, and the u.s. only adding 38,000 jobs. and as simon said, the markets are being resilient considering just how bad that data is. and we can make jokes about the bls forgetting to carry the one, but this is no laughing matter. >> there is two huge implication, the timing of the rate rises, and it would be surprising to see the fed race in the face of this, and maybe if june is better, it changes, and the other is the impact on the election. the economy stay strong, it would be a major upset to see the republicans win the election, but if the economy goes into the tank, all bets are off. >> and mike, does this mean that we have peaked in 2016 so far with the job growth, and acceleration of the growth. >> the expectation would be that you would shift down from 200,000-plus a month to
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something lower, but this is well weaker than we expected in terms of the new trend. and it is too early to say, and to henry's point about the election, the rule of thumb is that always the headline is the unemployment rate. so it is still kind of hard to run against the incumbent economy when the unemployment rate is very low, and to the fact that anybody is going to be nuanced, but no way to slice it to say it is not a weak number. >> but it is just 116,000 jobs last month? >> well, it is still higher than 38,000. and henry, is this the equivalent of game one in the nba finals where steph curry and clay thompson are not scoring, but it could change. >> yes, it could be an unusual number, but if you several of these, and if you remember in the last election, how much energy was focused on the numbers, and when they came in higher or lower, and the accusations of the number fudging and the rigging of everything, and everybody is
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focused on the numbers and trump pounced on this within a minute, and it is terrible, and you are to make a change, and folks are going to be focused on this politically over five months. >> and nobody is getting laid off, so the jobless claims are low, low level, and not nearly enough evidence to say it is in an important turn month to month in looking at the turn. >> is it people leaving the workforce? h >> it is a noisy data series, and that in any given month, it will be revised by tens of thousands after the fact, and it is not, and seemingly the household surveys say, yes, fewer people are looking for jobs, and almost all of that, the unemployment rate is entirely and non-high school and n non-college educated workers and so, yes, a tecertain interior, there is a problem. >> and people are just at hoemt watching netflix, and not wor g working. that is it. >> and when jim cramer came out
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here he said to go out to get yourselves a mortgage thinking of where the 10-year would go, the yields would go straight down, and now we are in a pattern of below 2, and below 1.8, and you think that it cannot go lower, and is there any silver linings of people going to get the mortgage or applying for new loans. >> yes, if you want a new mortgages good time to get it. and the wage growth year over year is actual ly decent and at the recent highs, and this is good, and it is going to be getting more people in people's pockets, and spend more money, and this is good for el real economy >> if you have a job. and the people who have jobs and want a mortgage, you have wage growth, but the people without jobs not necessarily looking at the rate that you might expect given that overall for those who are doing okay, things might be seeming to be getting better? >> yeah, no doubt about it. it is still this choppy path here, and it is 6 1/2 years of expansion and still talk about has the recovery reached all of
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the corners of the e e conpmy, and that is the cycle. >> from the jobs report to the country's single largest private employer walmart we go to courtney reagan who is at the walmart meeting where walmart says it is going to be partnering with lyft and uber to deliver groceries among other thing, and courtney, what is the latest on the ground? >> well, hi there, kayla. the big event of the shareholders meeting is the meeting behind me, and the arena is filled with 40,000 attendees and celebrity guests and musical acts as well, and much of them a surprise as always. however, what walmart has been spending most of the week on is showing off the technology in store to both media and employees are from around the world at all of the formats from the sam's club to the neighborhood markets to the walmart supercenters, and then today, walmart announced they will begin to testing uber and lyft as the last mile of grocery delivery from phoenix and denver, and this is how it work
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s. walmart em plow yees will shop for the items online, and then the employees request the on demand delivery service to go to the shopper, and likely to the shopper's home. and the standard is $7 to $10 delivery charge is the same for the consumers so they are not paying the drivers anything different in the two test markets. you have to use your imagination for the next one because know photos or videocams were allowed. but they did say they were using drones to help with the inventory management. so the drones go up and down, and taking 30 photos per second to deliver realtime data about the inventory, and if the items are in the right place or out of place, and that would take a human with a hand scanner to do about a month what a drone can do in just about a day, but walmart says it is still 6 to 9 months away from deciding if that test at the one distribution center will be rolled out in all 190 of the
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distribution center networks throughout the country here, and whether or not it will be used in other areas. you might remember that walmart back in the fall had filed with the regulators to use drones to test for things like delivery, pickup, and monitoring the outside of the distribution centers and trucks, and so that is still down the road quite a bit. back to you guys. >> thank you, courtney reagant at what is always a star-studded event. but henry, drones on grocery, and testing delivery systems? >> yes, amazon is very good at the distribution systems, but it is a standard development for walmart and it is going to help if they can get it right. and the other side is competing with amazon on the last mile. this is where the commerce is going, and huge companies around silicon valley at the realtime economy, and walmart is a great company, but they are at a big disadvantage to amazon. this is what amazon does, and it is orange nized around the
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digital and not a side business, and walmart has the advantage of the real ate estate in a lot of locations to have the pickup sener ters, but the idea of somebody shopping for you is tremendously expensive and very different from the walmart model. if they started to get real volume in the store, they would have to hire a ton of people to shop, and then delivery charge. it is not the core business they are in, and as both of the companies move toward this amazon has the big advantage. >> and we should say that bezos is an investor in business insider. >> and i own amazon, and not because of that. >> and jon, can they play catchup? >> well, they have to try things, but the uber/lyft thing is fraught with danger, because what if you forget the eggs when you are packing the customer's order or what if the person is not home because they ran across the street when this is delivered, and you have a one driver whose job it is to deliver this order, and then doing something else, but one little glitch can screw it up. and what if they leave the
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groceries at the front door, and the dog knocks them over, and there are multiple customer service issue s with the relatively small orders and not as simple as picking up someone and dropping them off where you have the person on site the whole time. >> and how different is that from what the retailers have with the u.p.s., fedex and the postal service, because it is a third-party logistics carrier. >> yes, but it is food, and the size of the order and the potential volume, and the complexity of dealing with the customer complaint that could have been with the driver or originated in the store, and there are so many places where this can go wrong. in is why you piloting something, and they are starting in a couple of cities. >> that is smart. and to your point, food is different and people are incredibly particular about food. having watched this in our family, the amount of time back and forth on the phone talking with the insta mate or whatever the service is the insta cart, it is so much time invested that you might as well go yourself. >> insta mate is probably a
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different service. >> well, it is, yes. but i remember a grocery analyst saying that it is a distribution center where your customers do the pick, packing and shipping for you and it is a wonderful system is, and you know what, it is a goodm is and cheaper than hiring someone and el thing them what to do. >> and it is a novel idea back then, and we are still trying to fig ur it out unfortunately. and finally, the protests eruptioning gamagainst donald tp in san jose turning violent. some trump supporters who are actually peaceably leaving the place, were punch and one supporter pelted with eggs and water bottles, and this is coming off a rally in new mexico, and hillary clinton's campaign condemned the violence and said it has no place in the election, and the fact, henry, protesters bullying the trump supporters who are peacefully leaving the event, does this strike you as a different tone?
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it is a different side of the story, although we have had violence at the rallies before. look,b stepping back, it is disturbing and indicative of how c contentious things have gotten and how angry people are, and glad to see hillary's campaign condemn it, and the trump campaign condemned it, because it is indicative of the election, and the anger in the country, and it is not a good place to be it >> and are we desensitized to this, mike? >> well, are making note of it, and both sides condemning it, but i have always thought that the election, are the investors going to start to worry about the election, and wall street comes out and says policy proposal by policy proposal, and see if clinton and trump -- well, that is not it. it is a psychological reaction to the expose shure of the discontent, and all of this, kind of the raw ainger that is really kind of diffuse out there, and it does not mean that the stock market has to crash, but that is the rest of the
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world saying, what is going on with this campaign. >> and with trump in particular, a lot of the business executives are saying, well, he is saying that stuff to be elect and when he gets elected he is perfectly reasonable, and pro business and not crazy, and that is one interpretation, and we can hope for that, but on the other hand, you don't know what the policies are going to be, and as we are closer to the election, trump has a very good chance of winning it, wall street around the uncertainty, positive or negative, you may see more volatility. >> and california is a contentious state, and clinton and sanders are closer than probably either of them would like. >> and i was in san jose for 14 years, and it is in the midst of the metropolitan area of of including oakland and berkeley and san francisco and lots of different people coming in probably at an event like that, but in the society today, it is important to have civility, and trump and the campaign have taken a lot of heat in the past, and people have put the focus
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on, oh look at what is happening with the trump rally, and this is not the trump people, all right. it is a societal issue, and we have to talk about it in those terms. it is important for voices from both sides of the aisle as we said to condemn this sort of the thin thing, and this is the country that we have to live in, right? >> the more you know, jon fortt. >> and a little rainbow there at the bottom of it. >> henry blodget, our business insider. thank you. >> when we come back, we will talk to didi chuxing. >> and when it comes to code, who has the best upside for shares? we will talk about that. and also, looking at the markets, dow down 184 and currently off that, and still teep into the red. of course, all of that after a disappointing jobs number. "squawk alley" back in a moment. ♪
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we spoke to didi's president jean liu about the recent inv investment from apple of $# 1 billion, and this is wa she had a to say. >> that is interesting question, because they said that they are buying market share.
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as a market leader, we are owning 87% of the market share in private car service, and almost 100% market share in taxi, all right. that is a market leader, and do you necessarily need to buy more market share or not? rig right. you have seen other places market leader by market share. and normally always if the smaller player with the smaller scale, lower efficiency and most cases were service, and to buy market share, aed on the have a subsidize, that question, i normally don't go into details, but since this is a product i want to sell, i want to show you something. okay. this is, and i don't know if you can see it, but it is in chinese. >> i can't read it. [ laughter ] >> i will translate, but it is very funny, because this is interesting. this is open screen uber's app in china, and open ly, it says 30% cheaper than didi. as low as 5 yen which is less
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than a dollar. >> market share. >> and this is no expiration date, and so it is almost everywhere, you know, in china, so i find it quite cute, because i have never seen a company put their competitor's brand on their own home page. i find it very convenient, too, because this is a strong proof to show that we have better service, and i like to to see this more often. >> i mean, boom! jean liu is taking uber straight on. and we had bill gurley on, and the implication from uber is that they are getting all of the mo e e nooshgs and not profitable, and she is saying, absolutely not. and taking them straight on, and this generation of the entrepreneurs in china is not to with. >> quite cute. ouch. and mike, the argument are from the investors is that there is room for two in china if nowhere else. do you buy that? >> well, it seems that is the market built for it, and it seems that market, and kind of
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like what the smartphones can leapfrog the older infrastructure elsewhere with the density, and the relatively lower car ownership and the rest of it, and sure, i am sure that there is room for two, but does this market get the vast majority and the profits, and that over time is the thing that you have to ask. >> i am not sure that there is room for two profitably, and we will see, because there is so many complexities to the market, and one of the services that didi has going is a shuttle that ends up running you and 12 co-workers will et get together, and the shuttle will run like a car pool to get you there. very different from the very private car service that is a shuttle that is custom created for that purpose. in the past, people might have had to ride bikes to work, and miles and miles to get there, and jean liu's point is that is not convenient, and it has the back ing backing of the chinese government, because it is a necessary piece of infrastrauk chu, and can -- infrastructure,
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and can lyft compete? >> well, they have to figure out how to the make money, and not continue to give their rides for free. >> and yes, with more investments from the saudis. >> thank you, jon. >> and jason calcaneus was at the investor seminar, and we will talk to him.
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the golden state warriors taking the first game of the nba finals last night beating the cleveland cavs 104-89. steph curry and lebron james faced off in a rematch of last year's finals, but it is the warriors' bench that stole the show scoring 45 points. jason calcaneus, and angel investor, and insooider.com was there at oracle arena watching it, and jason, have you changed
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clot clothes or is that what you wore last night? >> i just got home, and we were out partying all night and i just rolled into the studio and so my voice may be rough, but i am am here, and i made it. >> that is all that matters. >> talk about the warriors' bench and the crowd last night and what to expect for the rest of the series? >> yeah, so, it was an amazing game. it is really is a team basketball approach, the warriors the most innovative team in all of sports right now, and they have revolutionized the game of basketball. if you are looking at the last 34 years, nobody thought that what they are doing now is possible. and then lebron james who is supposed supposed to be the next michael jor stan 2-6 in the final appearance, and he is just a selfish, and opportunist player in the career, and the warriors are a dynamic and selfless team,
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and the cleveland team did their job, and held steph curry, and clay thompson, and steph curry -- who lebron james dissed him, and steph curry was shutdown las night, and they got whooped. they still whooped the cleveland cavaliers, and i don't know if lebron james is ever going to the win a title. if they can keep this team together, the warriors are going to be the greatest team in the history of basketball. >> you sound like a man who does not have a lot of investments in cleveland. but i have to ask, why does it seem like tech is behind the golden state war yos -- warrior a greater extent than the giants. and people are proud of the hometown team, and watching the sharks as well, but because of the ownership issues where tech has ownership or the innovative style of play or what do you think sh >> well, it is a great question, jon. typically the latter, tin know vative style of play.
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they have studied the game of basketball, and put together a team that is playing selflessly, and i don't give the ownershipny credit for the success of the team. because the players are unlike any team in sports by doing whatever they want to win, and whether it is bench themselves or pass the ball. because they will play the game to the level of precision and beauty that has never been seen before. it is amaze ing ing to see this play, you know, michael jordan's bulls, because i think that they would beat them. it is a big statement. >> and silicon valley is not known for the selflessness, and we will see if it rubs off. >> yeah, but it is a beautiful thing to see, and they have innovated in the game of basketball. >> and speaking of a little humility for silicon val are lee, and jason, we aired the interview that john did with jean liu from didi, and she accused uber of buying the market share in china and what would you say to that? >> well, listen, i'm obvious ly
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an investor in uber and this is awesome, but i don't have a operational role at the company, and the information is my opinion. listen, i -- it is going to be a dog fight, and it is going to be hard for uber to win there, and no american company has won in china, and let's be honest, right. but ber is doing very well, and i think that there is a good chance that they could win. i think that they are within reach. now, you know, as for the didi person calling uber cute, i would be very careful, because i am invested in 150 companies in the last five or six years and i have never seen a company execute at this level, and never seen a company this aggressive and wants to win as much, so they are cute, yeah, sure, and the management team at uber is cute like a pack of orcas and my advice to them is not to poke the orca sshs and play nice.
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>> for a man who just dissed lebron james on national television and you didn't call him cute, i geuess. >> careful, jon. >> and i want to talk about the theil versus gawker situation. and you think that theil is 100% right, and you know that jeff bezos came out strongly in favor of the gawker position, and you said, look, you are will find yourself on the other side of the situation like this as a billionaire, and get thicker skin, ugly speech needs protection, and we don't want to create a culture in which the billionaires crush speech with t the third-party lawsuit, and which part of that do you disagree with? >> well, it is an ugly situation, and it is based on something that happened ten years ago at a time when the country was very different, which was gay men were very fearful of being out and had to make limited career choices, and at that time, gawker printed lies about people, and destructive in outing the people, and trying to destroi their careers and gawker has
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changed since then, and they don't do that. >> and theil is a gay man so i can't imagine that since the owner of gawker is gay, he was out to destroy his life? >> well, we know that, because we printed the story in the same day, gawker was at that time paying for stolen content whether it is a stolen iphone or the stolen magazine covers and they pushed the boundary of journalism into a dangerous place, and they have retreated based on being sued. and peter theil aggressively funding lawsuits, and nobody wants to are live in a world where the billionaires can bully the press, so you have two wrongs, and weird moment in time where the thankfully the gay men can be the ceo of apple and not be fearful, but ten years ago, i don't know if tim cook would have gotten the ceo of apple if he was out. that is a sad state of affairs,
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but it was sad when anderson cooper could not be out, and pe peter theil could not be out, and tim cook could not be out, and thank god that our world as changed to accept people who they are, and gawker was in the wrong, and printed lies, and peter theil if he files another lawsuit or two like this, that is disgusting and something that we did not want to see, but somebody had to beat back the false journalism happening. >> and mick denton said that gossip is the journalism's first draft. that is an interesting take. polarizing debate. >> well, i don't know if i agree with that. >> and we all want journalists to fact-check, and if they had done that and treated people like human beings they would not have put themselves on the other side of a $140 million judgment. peter theil did not buy, that and a jury awarded it, and so clearly gawker is in the wrong. >> and they are still appealing
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it. jason, have a good weekend. >> ugly all around. go warriors in five. >> meanwhile, simon habs is here with the close. >> some markets in europe are in the fall, and perhaps 1% to 2% here. and it is a bad day to get a disappointing employment report in this country for three reasons. one, if you are selling goods into the united states, you have to question the driver of growth, and the second reason is because the currency is going to be moving against you as the dollar weakens, and the third reason is that because it pushes the european central bank into ever more desperate measures to boost the eurozone economy and one by one. this is what is happening in europe as the dollar is pummeled, because the lower expectations of raising the rate in the u.s., and if you are an exporter that is tough, because you want the euro down and not up. the bond market is rallying across europe, and that is forcing more of the rates of the
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2-year or the 5-year in germany further into the negative territory, and that means that the european central bank can't buy them, because they are too negative unless they lower their own rates further negative to make it possible. so everybody is worried about the further negative rates and what the ecb will do in response to what is happening. we are sitting at 073 basis points, and so clear ly the exports are down, but it is really the bangs down, and the italian and the spanish banks are down, but you can see the other players in negative territory. and still, we count you down to the vote of whether the uk is going to be leaving the european union on the 23rd. t today the finance minister was meeting with jamie dimon saying that the uk could lose up to 400,000 service jobs, and janie dimon said that jpmorgan could u cut up to 4,000 of the 16,000
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job jobs in the uk. >> the fact is that the best case is not good and the uncertainty is bad. we have seen the uncertainty causing less investment in the country, and people on june 24th will invest less as they try to sort it out, and there is two years of uncertainty to try to figure out what to do. >> and the problem for the people who hold that argument is that the polls are not shifting in their favor. guys, back to you. >> thank you, simon. >> and now up next, amazon shares are moving lower, but closer to the all-time highs of the week. and we will take a look at the shares and the strategy, and where they go from here. we are back in a moment. try the superior hold... ...of fixodent plus adhesives. they help your denture hold strong more like natural teeth. and you can eat even tough food. fixodent. strong more like natural teeth.
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good morning, again, everybody. i'm sue herera, and this is the cnbc update at the hour. the leader yay toe la khomeini is ruling out cooperation with the u.s. saying that the u.s. is remaining their epmy despite a landmark nuclear deal. he spoke on the 27th-year death of yay toe la khomeini the death that led to the ous ster of the shah. and jack lew is in south korea to the meet with his
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counterpart to discuss hacking threats. and more flooding in france getting closer to the louvre. and did you know that today is the national doughnut day. it started when the salvation army used to use doughnuts as fund-raiser, and xhcommemorate e woman who sold served doughnuts to soldiers in world war i. back to you, jon. >> it is a national treasure today, doughnut day. and this week at code, we were told that amazon studios could turn into a fourth pill lar of that company for amazon, said jeff bezos, and now joining us is mark mcnamee, and glad to have you here on this friday. >> thank you, jon. >> i want to ask you about the costs associated with these potential pillars, because that
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is often where the investors will will be blindsided. groceries is one of those that could be really seeing astronomical costs if amazon starts to roll it out nationally, and is that the way it looks to you? >> yeah, it could. two points here, and one is the question that came up with the clients and the investors this morning, what is the impact of any of the these what we labeled the six new potential pillars on amazon's margins? they start off with 3, 4, 5% gap operation, so almost any business they go into is margin neutral or margin accretive. and so, the startup costs could be substantial, so it is depends how they go after the market, and amazon is keeping the options open. they are rolling out amazon fresh, and expand ing into bostn but at the same time, they will
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deliver nonperishables through prime now programs and free shipping. and it is maybe 5% revenue now, but it is growing at a reasonable clip and a reasonable fourth pillar for the company over the next ten years. >> anything that you heard from jeff bezos this week to suggest that we should expect a different amazon to be turning out profits more often, and won't going ba into the investment mode or should we be looking over the shoulders for amazon to start an investment cycle again, and should investors brace for that? >> no, investor should brace for it. we were both at the event, and i heard the same jeff bezos at code or re-code eight years ago and this is a person with the consistent investment philosophy, and he believes that the core businesses are modestly penetrate penetrated, and we agreement we believe that 10% of the retail sales are online, and a lot of growth ahead h, and so there needs to be a lot of investment, and 10% of the cloud computing on processes in the cloud are in the cloud, and so a lot of growth and investments there,
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and you should expect the cycles. the advantage of amazon however is that they are reaching the tipping points of the scale in retail business and the cloud is growing 7 times faster and 5 times more profitable and so it is the makeshift story if h tech, period. margins are expanding inevitably across the business regardless of really how much they put into the newer pillars. >> mark, just to get a little specific of what it might mean for the investors the brace for something like this, and your price target is $800 a share, and that is 11% up from here, and if you are looking on the amazing run of amazon over the last five years, it is almost every year trading 12 or 25% off of the high at some point, and are you advising that the you should expect something like that or wait for that opportunity for the stock to pull back? >> yeah, mike. it is the right question. look, we made amazon the number one pick at the beginning of the year off of the december correction, and this stock went to $475 and people were worried
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about the investment cycles, and price wars and the cloud computing, and that is when you get in on amazon, and look, we are small buyers of amazons and right here i fre fer netflix, and google to amazon, and relatively small buyers, but on the pullbacks like this year, to your point, we have these in a year or year and a half, and this is when you will want to get in aggressively on the name if you don't see anything fundamentally changing, and we don't see it. >> fis to see you this week at code. >> likewise. likewise. we are still watching the markets off of the lows burk still falling after the disappointing jobs number, and the u.s. economy is adding 38,000 jobs in the month of may, and rick santelli, you are all over that story with the special gue guest. >> absolutely. we have ed lazear, head of the economic advisers under george
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bush, and he gives us insight whether it is hours worked or the wages or the most important issue which is the more and more n negative rates of the data points, and how is that going to turn out? that is is what we want to talk to with ed after the break.
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on the "halftime report" what that job shocker means for the fed and your money with janet yellen speaking monday in
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phil ly. and the new price tag the on tesla is going to be with us. and the super bowl of pharma and we are looking at the stocks that are likely to trade the most. we have that coming up at the top of the hour. >> thank you, scott. and we go to rick santelli over there at the exchange. >> and we have our guest kwi often on fridays. and ed lazear, i appreciate your taking the time. >> pleasure to be with you, r k rick. >> and ed, back in the dark ages when i went to college, university of illinois, my alma mater and there was a professor who used to say, sometimes a trend out to the extremes to get a different vantage point to what is exactly going on. to that end, we saw the report, and the drop in the unemployment rate from 3 to 4.7, and so if we have one-year reports of the same magnitude on every level that we had today, we would end up with a 1.1% unemployment
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rate. and your thoughts on that notion? >> all right. well, let me give you a slightly d different spin on the employment numbers that it is con ssistent with your thinking i think on this. so if you are looking at these nu numbers and if i took the numbers literally, i would say, this is about as good of an indication that we are at the peak of a business cycle as i have seen. why? the unemployment rate down to 4.7% which is viewed as full employment by almost all e economist, and job growth is 116,000 over the past three months which is about the same as population growth. the population growth number would give you 129 within rounding error. wage growth has been pretty good over the past several months, and all of those things have been -- >> and did you see that revision to april? >> i did. >> april, it was up to 4/10 on the average hourly earn inings,t
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in the last ten years, we have had five times we had a higher average higher earnings than 0.4, and last one was january, and if you throw the rest away, the other four occurred prior to 2008. please continue. >> yes, that is exactly right. so if i'm the fed and looking at this, i would say, gee, we are at the peak right now, and we are in a bind, because you don't raise the rates when you are at the peak, but you raise them when you are in the recovery on the way to the peak. so they are in big trouble as a result of these numbers indicating the peak. one thing that you mentioned earlier, rick, and i want to come back to it, do we believe these number, and you said, well if you took them out, literally, down the 1.1% unemployment. and the employment rate fell to 57.9%, and we should be 61.5%, and this is starting to look like a terminating situation.
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>> and where are we now where we -- >> well, i wanted to say that is 4 million jobs. so we are about 4 million jobs short of what we should be if we were in a normal and healthy economy. so, you know, this is the kind of, and this is a serious proble problem, because it does look like we are starting to peak right now, and there is nowhere to go. >> all right. now, tear up all of the rule ares, and forget how smart you are as an e e kconomist for a moment, and look at this in a common sense fashion. i'm serious. >> all right. >> and data-dependent and if you are believing the data dependent, it is not good for any normalization, and if you throw it out, and think, ed, bill gross yesterday, and i have great respect for bill gross, that capitalism, and free growth capitalism cannot survive negative rates, and is that dynamic bigger than just going through the discomfort because they waited too long to raise the rates. and in other words, are there bigger fish to fry with normalization? finish it up? >> well, the negative rates is a
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useless strategy. i have never viewed it as particularly effective. i don't know why they are going there, and they believe they can stimulate the e kconomies that way, but it is not going to happen. i am with you on that, and the line that you and i have both been taking over the last few years is that normalization would have been a much better policy for the fed and all of the central banks, and negative rates and the kinds of the low rates that we have seen in the united states for a long period of time are the opposite of that, and that is why we are in fix that we are in right now. and the other aspects are policy issues. >> i got you. and now, these topics are not co comfortable, but we have to deal with the reality, and this is the hand that we are dealt. jon fortt, sorry, i am running long. back the, you pal. >> that is all right. if you have lost your keys or your phone or lost your mind looking for them, our next guest might help you out. he uses bluetooth technology to track down a lost item much
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narrator: sometimes it's the things that the rest of us don't see that can make all the difference in california's classrooms. it's part of my responsibility as someone who's experienced to allow the door to be open for younger teachers. the teamwork between the teachers is essential. when we collaborate with each other... ...it makes everyone stronger. by helping my fellow teachers be successful, i'm helping kids be successful. narrator: the california teachers association: educators who know quality public schools make a better california for all of us. have you ever lost something? and who hasn't? or had something important to you stolen. you know it can cause a lot of headaches. one silicon valley start-up is turning to bluetooth and gps technology to make tracking down any misplaced item a lot easier. they just closed an $18 million round of funding. joining us now, tile co-founder and ceo mike farley. happy friday. good to have you with us.
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>> pleasure to be here. >> you guys have been around for awhile. a hear a lot of ads on podcasts or radio shows all over the place. how do you advance this technology? about making the tile smaller? addings kinds of services to it? kayla's got one on her keys. what are you going to do to get her to buy another one? >> well with the fund raise that we just announced this week, our $18 series b fundraise led by bessemer ventures we're using the funds for three main areas. one is to create new shapes and sizes of tiles. two is to expand our reach in retail. and three is to deploy our strategy for our tile platform to get tile smart locations in to devices made by other companies such as headphones, digital cameras, and also fitness twrakers. >> jon is wrong. i do have two.
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my husband and dad bought them for me separately. but i'm not like most people. and i'm wondering how you get people to see the need to have more than one of these things. you have to make them specialized? do you have to make a type of phone tile versus a type of key tile versus a type of camera tile, that's a little bit easier to affix to some of these objects? >> certainly the different shapes and sizes made new use cases easier for people to apply. but even right now, with the one shape and size that we have, we see people putting out all kinds of things from keys to wallets, jackets, back packs. even bicycles and cars are being tiled to help them find, say their car when they forgot where they parked it. and also if it happens to get stolen, our tile community has helped people find stolen cars many times. >> along those line can you mike a chi-h-i-l-e for children?
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they get lost. blue tooth is probably too solid for that. can you solve that for parents of the world? >> our focus is really giving the power of smart locations to everything. we're not focused on tracking people. the technology works in a couple ways, first when you're near your item you can ring it and it will show the location on a map of where it was last seen. the beauty is everyone else in the community helps everyone else locate their item. if it's not at that last place seen our 500,000 items being located every day could be the one that you're looking for. and you'll get that updated location. >> you mentioned working on having this technology embedded in other products which seems to make a lot of sense. what's proprietary about what you have. why can't other companies essentially just do it?
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>> so, we've done quite a bit, both in our mobile app, also in our firm ware, and also in the cloud, to make this possible. we've been working on it for three years. we have a large team of folks working on this technology every day. but, significantly, it is our network. it spans over 200 countries and territories. in its finding. over 500,000 things, every single day. >> right. >> okay. well mike i think you're missing an opportunity. child. i'm telling you child where are you? mike farley from tile on a friday. great to have you, thanks. >> great to be here. thank you. >> when we come back, could we possibly end today in agreement? the markets are making a big comeback after that dire jobs report earlier this morning. we'll talk about what's moving in the markets.
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yield stocks. >> a lot of people are surprised that the market is as resilient as it is. >> market wasn't expecting a june fed move. i guess it isn't totally out of left field. >> goldman says zero% now. that does it for squawk ally. now over to wapner and the half. welcome to the halftime report i'm scott wapner. our top trade this hour the jobs shocker and what it means to the fed now. the markets and your money. with us for the hour today, jim levanthal, john brown, stephanie link, jon najarian and steve liesman. let's kick it off with the markets and the reaction to the stunning miss on the employment report. only 38,000 jobs created way below expectations and now raising new questions about the health of the u.s. economy, and where stocks might go from here. josh, what does this do to your view on the market? >> it really doesn't c

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