Job Growth Slows in June, Yellen's China Talks, Twitter Threatens Meta 7/7/23

Squawk on the Street

CNBC

Business, Investing, News

4.1 • 567 Ratings

🗓️ 7 July 2023

⏱️ 44 minutes

🔗️ Recording | iTunes | RSS

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Summary

Carl Quintanilla, Leslie Picker and Mike Santoli discussed market reaction to the June jobs report and what it could mean for the Fed. Non-farm payrolls missed expectations -- up 209,000 -- while the unemployment rate fell to 3.6% and wage growth exceeded forecasts. J.P. Morgan Asset Management Chief Global Strategist David Kelly joined the program with his view on what’s at stake for investors. Also in focus: Treasury Secretary Janet Yellen's talks with senior Chinese officials, Twitter threatens legal action against Meta over the new "Threads" app, what Amazon CEO Andy Jassy told CNBC about the economy, the FDA approves Biogen and Eisai's Alzheimer's drug, surprising sales data involving EVs. Squawk on the Street Disclaimer

Transcript

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0:00.0	Market moving insight and analysis.
0:02.0	Join Jim Kramer, David Faber and me, Carl Kintanilla, on the opening bell hour of CNBC Squawk on the Street. Good Friday morning, welcome to Squawk on the Street. I'm Carl Kintanaia with Leslie Picker, Mike Santoli at the New York Stock Exchange. Jim and David have the morning off. June jobs is a miss, first one in over a year, and that's with some negative revisions. Two-year yields back below five,
0:22.2	but stocks are still on pace for a losing week. Our roadmap begins with that slowing job growth.
0:27.5	The fewest jobs added in June since December of 2020, but wage growth is higher than expected.
0:33.7	Will that change the Fed rate trajectory? Plus Treasury Secretary Yellen coming to the defense of U.S. businesses while walking a diplomatic tightrope in China.
0:43.3	And checking in on the state of the consumer, Levi's slashing its guidance in Costco, same-store sales, slip once again.
0:50.3	Let's get right into market reaction to the jobs number.
0:52.3	A lot of interesting internals in this
0:54.3	print this morning. Restaurants down eight first declined there in I think 28 months. Government
0:59.7	jobs is about a third of the jobs at it. Yeah, so private sector was a little bit weaker in terms of job
1:05.2	creation. It had the market really in a misdirection move leading into this, right? Yesterday was all about,
1:12.6	you know, a mini panic in the bond market about a super hot number in the ADP report. So this
1:17.1	really did take away a lot of that concern. On the other hand, there are no all clears in this
1:23.0	particular moment in the cycle. It's either, you know, a weakening job's picture is okay. We can
1:28.4	moderate the growth that's expected. But a miss after 14 months of beats on the top line
1:33.7	payrolls number, you know, then it brings up the idea of, is this finally the inflection point?
1:40.3	Not sure we have to panic about that yet, but you do mention the stronger wage number.
1:44.6	We are on track for the Fed to be doing more.
1:46.4	And I think we're just at this moment where, you know, you're never too far away from one thing you're afraid of or the other.
1:52.5	The market's had a nice run here.
1:54.9	Bond market is kind of calming down, but not really taking back a lot of that yield jump yesterday.
2:00.1	And we are in a zone
	...

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