Jobs Report Surprise, Plus Reaction to Apple, Amazon and Alphabet Earnings 2/3/23

Squawk on the Street

CNBC

Business, Investing, News

4.1 • 567 Ratings

🗓️ 3 February 2023

⏱️ 45 minutes

🔗️ Recording | iTunes | RSS

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Summary

Carl Quintanilla, Jim Cramer and David Faber led off the show with news that surprised Wall Street: The January employment report shows the economy added 517,000 non-farm jobs, blowing well past economists' forecasts. The unemployment rate fell to 3.4%. What does it all mean for the markets and the Fed? The anchors engaged in a wide-ranging discussion about market reaction to quarterly results from Apple, Amazon and Google parent Alphabet. Should you buy into mega-tech? Also in focus: What Ford CEO Jim Farley told CNBC about his company's earnings miss, Nordstrom soars on a report that activist investor Ryan Cohen has taken a stake in the company, plus highlights from Jim's "Back to School Tour." Hosted by Simplecast, an AdsWizz company. See https://pcm.adswizz.com for information about our collection and use of personal data for advertising.

Transcript

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0:00.0	It's Jim Kramer here. You're listening to the opening bell of CBC's Squawk on the Street.
0:04.7	Don't miss a minute of the action.
0:07.5	Good Friday morning. Welcome to Squawk on the Street. I'm Carl Kington here with David Faber, the New York Stock Exchange.
0:12.0	Jim Kramer is in Miami. January jobs are a blockbuster, $517,000 more than double the estimate.
0:19.3	Unemployment down to 3-4, the lowest in 50 years.
0:22.3	Wage growth, though, is in line, and participation improves. You've got yields up, but the two
0:27.0	years still below four and a quarter. Our roadmap's going to begin with that stunning jobs
0:30.9	number, blowing past expectations, the strongest gain since July. Plus, we have a big tech
0:36.9	triple header. Apple's steepest sales
0:38.8	decline in more than six years. Amazon's first unprofitable year since 2014 and Alphabet
0:44.5	facing increased pressures in the advertising market. And Ford CEO, he's vowing to transform
0:50.3	the company, the automaker delivering a wide earnings miss. It was hurt by ongoing cost
0:55.3	and supply chain issues. Let's begin with that much stronger than expected January jobs number,
1:00.3	Jim. What a combination of a huge headline number, but a lot of the internals that we would
1:04.9	ordinarily worry about in that situation aren't exactly happening. No, I mean, is this a great country or what? I mean, we just create jobs
1:15.0	like no other in the world. And you're not making that much more. You expect a lot of upward wage
1:20.6	pressure. Now, of course, we know that Powell said earlier this week, actually wants disinflation everywhere,
1:25.6	and we're not getting that disinflation. But we all marvel, I think, and we have to sit back or take a moment, take a breath, and say, this country is a job engine, even if you try to stop it. David, I have to tell you, I'm not calling this a nightmare for J-PAL. I'm saying he's got one thing under control, which is that wages aren't going up, but you know he likes
1:44.8	disinflation. Until we get that, we are not going to see stabilization in short rates. They're going to
1:50.2	keep going higher. They're going to keep going higher to what extent? So the idea that there might
1:54.6	be a pause or there might be, in fact, cuts that come towards the end of the year? How does this
1:59.8	job number, this blowout number that was so far above expectations,
	...

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