9AM HOUR: Hassett on Jobs Report, Diesel Hits a Record High, Tesla Cybercab Launch Reaction 9/4/26

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Market insight and analysis. You're listening to the opening bell of CNBC's Squawk on the Street.

**Carl Quintanilla** (1:04)
Good Friday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Leslie Picker, Mike Santoli, here at Post 9 of the New York Stock Exchange. Cramer and Faber have the morning off. Futures do go red here on this barn burner of an August jobs number, up 162K, three times the estimate. Steady unemployment at 41, wage growth in line at 31 Yields are higher. The two year gets to 442 That's the highest since early 25 Odds of a September hike back to 56
Oil pretty steady. No real news of fresh US-Iran strikes today, but still on pace for the best week since July. Our roadmap begins with the August jobs surprise, much stronger than expected. We'll get the first White House reaction with DC. Director Kevin Hassett in a few minutes.

**Leslie Picker** (1:45)
Plus Tesla's quiet Cybercab debut, while the nation's top autoregulator opens an investigation into the Cybercab's deployment.

**Michael Santoli** (1:53)
And shares of Lululemon plunging after slashing its forecast for a second time.

**Carl Quintanilla** (1:58)
Let's begin with some market reaction to this jobs number. As we said, 162, only looking for 55 or so. Positive revisions. Two-thirds of the gains are restaurants, Mike, and local education.

**Michael Santoli** (2:10)
Yes. So, you know, private sector was like 127 of the 160-ish.
You also had healthcare, it was another healthy slug. So, you know, certainly it's a beat on any metric. It's more than just payback from a weak July number, which may have been impacted by seasonal adjustments because you did have positive revisions for the prior two months on a net basis as well. So, you know, certainly solid labor market or at least one that is steady is the way we can characterize this. Bond market did react pretty quickly but not dramatically in the sense of going back to the yield highs we've seen recently because next week's inflation data is a little bit more decisive in terms of what happens with the Fed. Also not the most sell on the news equity response that you might see. It's sort of around the edges. We did sort of take a half step back. So, you know, I guess it's sort of no help for the dubs, but I also don't think it's something that we shouldn't welcome, because you want to see the private sector hanging in there while we have these oil prices where they are, all the disruptions we've dealt with from geopolitics and then rates going up to multi-year highs.

**Leslie Picker** (3:22)
And if there was one read-through for inflation, it would be what's going on with wages, which increase, but not surpassing the level of inflation that we've seen recently. So maybe that's giving people a little bit of pause, too.

**Michael Santoli** (3:34)
Wages were right on target in terms of forecast, really not accelerating and not, as everybody on the Fed and outside has said, it's really not the driver of inflationary trends right now. So I think that's an okay metric, at least from an inflation perspective. Obviously, it's not from a real wage growth point of view. And then the household survey was strong, but you say unemployment rate steady at 4.1%. When the Fed looks at the jobs picture, it mostly looks at the unemployment rate. It really does believe that's its best read in terms of how much slack there is in the labor market. And so that's kind of steady. She goes, worth mentioning a week ago, Kevin Warsh at Jackson Hole did characterize the labor market as kind of full employment. He wasn't saying that there's sort of any wobbles there as he gave what was kind of a hawkish message. So this market reaction more or less just takes back yesterday's dovish inference from Waller's remarks in the morning.