11AM Hour: Boeing CEO Exclusive, The Two Sides of the SpaceX IPO & Apple WWDC on deck 6/5/26

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Carl Quintanilla (1:04)

Good friday morning, welcome to Squawk on the Street. I'm Carl Quintanilla with Leslie Picker here at Post 9 of the New York Stock Exchange. Sara Eisen is on assignment today. Boeing has the green light to ramp up production of its 737 Max. Today we're gonna talk exclusively with CEO Kelly Ortberg about what he's doing to make sure quality is maintained.

Leslie Picker (1:21)

Plus shares of Lululemon under pressure of the company cutting its outlook as headwinds mount. We'll discuss what it means for the broader retail sector.

Carl Quintanilla (1:29)

And the upcoming record setting SpaceX IPO is expected to mint at least four new billionaires. We will tell you who they are. Meantime, a little softness in the market today as the jobs number comes in strong, yields go up as a result. Markets under a little pressure. Also the Nasdaq down almost one and three quarters percent as some of that weakness in semis today continues. Of course, next week though is gonna be all be about the SpaceX IPO, the CPI, Tim Cook's final WWDC.

So there are a lot of catalysts in June still on the way.

Leslie Picker (2:01)

Absolutely. Yeah, summer is here, but the news flow is still is still flowing. We'll start off the hour with that blowout May jobs report, which our next guest says could be a sign of a new and highly favorable trend emerging for the labor market. Let's bring in Jared Bernstein, chair of the Council of Economic Advisers under the Biden administration.

Jared, what do you mean by trend reversal? What gives you the conviction that this is the beginning of a big upturn here?

Jared Bernstein (2:30)

Well, if is the right way to phrase this, I always like to say one month is not a new trend make, but now we have three months of job gains, two 14 back in December, I'm sorry, back in March, two 14, 179 in April and 172 in May. That's three months in a row of uniquely strong job gains. Now, here's the caveat.

If you go back to the prior three months, the average of those three months in terms of payroll gains was just about zero. In fact, it was negative 4K. So we have, there's the chart right there. So we have a really very different trend. And while one month is not a new trend make, three months kind of maybe sort of begins to get you thinking in that direction. So I don't want to get over my skis, but I also don't want to ignore that this isn't just a monthly gain. And in fact, revisions from March and April added 93K to the total. So a good couple of months there.

Leslie Picker (3:30)

Yeah, pretty hot print all around. But the unemployment rate is pretty steady. Should we make much of that?

Jared Bernstein (3:37)

I actually think we should. And so this is sort of a counter argument to where I just was, or at least one that's a little bit broader.

If you take an average of payroll job gains over the past 12 months, let's just assume that the payroll survey is really quite noisy. And in fact, the numbers I just took you through certainly underscore that point. Well, over the past 12 months, the average payroll gains have been about 40K per month. I think it's 41K per month. That's just about what most people, most analysts are labeling as break even these days, maybe a little below that, meaning that's the number you need to keep the unemployment rate stable. Well, what's the unemployment rate doing? It's been pretty stable at 4.3 percent, as you just said. So another interpretation, one that's, again, pulling the camera back a bit from just the prior three months where the trend has been more positive, says that really over the last year, we've been hitting break even and the unemployment rate's stable, everybody stay calm.