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MARIA BARTIROMO, FBN HOST: Thanks for being with us. I'm Maria Bartiromo. And it is Friday, December 2, your top stories right now 6:00 am on the East Coast. Renewing the promise to make America great again, President- elect Donald Trump and Vice President Mike -- elect Mike Pence thanking voters last night and focusing on putting America number one.
(BEGIN VIDEO CLIP)
MIKE PENCE, VICE PRESIDENT-ELECT OF THE UNITED STATES: Thanks to you we're going to have a president who will make the American economy great again. We're going to cut taxes, rollback regulation, have trade deals that put American workers first and we're going to get this economy moving for every American.
DONALD TRUMP, PRESIDENT-ELECT OF THE UNITED STATES: I'm asking all companies to keep their jobs in America and we will work to make America a better environment for workers and businesses.
(END VIDEO CLIP)
BARTIROMO: Plus a surprise cabinet announcement yesterday. President- elect Trump says that he will nominate General James Mattis to lead the Defense Department. Investors waiting on the November job reports. Today it is jobs Friday, a 175 thousand new jobs expected to have an added to the economy last month. With the unemployment rate holding at 4.9 percent. We've got those numbers as soon as they hit the tape. Road rage turning deadly. A former NFL star killed after an apparent incident on the street of New Orleans.
The details coming up. And Hawaii known for palm trees and sandy beaches. Well, what about snow? Part of the big island under a winter storm warning this morning expecting up to a foot of the white (inaudible). We will bring you the details. Change is growing at Starbucks. CEO Howard Schultz stepping down from his role as CEO. He will become Executive Chairman. Schultz will lead an effort on the company's high-end coffee shops. And Snapchat Spectacles growing in popularity. Now, people who wear prescription glasses will be left out.
You can order specific lenses for the video recording devices. Market is going to like this, the Dow Industrial is coming up a record close again yesterday, futures pointing to pullback this morning. It is all about those job numbers that will set the tones for markets. We've got weakness and commodities that's weighing on market as a result. We're expecting the Dow Industrial to pullback by 30 points today at the open. European markets are on edge. Ahead of key votes this weekend in Italy and Austria.
Big elections going on throughout the Eurozone this weekend. Major market fair trading lower. The FTSE 100 under pressure. And in Asia overnight declines across the board as you'll see. Hang Seng in Hong Kong the worst performer there down one in a thirty percent. Well, how about a breakfast combo for the ages, Pop-Tarts and Dunkin' Donuts teaming up to bring you coffee and pastries on one bite. We will tell you about it. All those stories coming up this morning.
And joining me to talk about it, Fox Business Network's Dagen McDowell, Rosecliff Venture founder and CEO, Mike Murphy and EmployBridge Chief Operating Officer and President, Joanie Courtney. Love to see you Joanie. When I see Joanie, you know, it's jobs Friday.
JOANIE COURTNEY, CHIEF OPERATING OFFICER AND PRESIDENT, EMPLOYBRIDGE: Job's day. Yes, always --
BARTIROMO: Good to see you.
COURTNEY: -- here on time. And good to be here.
BARTIROMO: Good morning.
MIKE MURPHY, FOUNDER AND CEO, ROSECLIFF VENTURE: Good morning, Maria.
DAGEN MCDOWELL, FBN CORRESPONDENT: We want the news to be good.
BARTIROMO: Yes, we do.
MCDOWELL: Because we want to support a 175 records at market (inaudible)
BARTIROMO: 175,000 jobs expected.
MCDOWELL: Right. It's about 181 is the average this year.
MURPHY: Yes.
MCDOWELL: Now, if you get in that -- in that neighborhood, a 181,000, it's -- it'll be good news.
MURPHY: I think regardless of the number, there's a different vibe out there right now. More --
BARTIROMO: I agree.
MURPHY: -- positive vibe for investors for the entire economy.
BARTIROMO: A lot of optimism going into '17.
MURPHY: And we need it.
BARTIROMO: And we'll see changes in --
COURTNEY: (inaudible) and the tax code and wages too, I think will be interesting today. They're not expecting that much but I think it's going to be more.
BARTIROMO: That's going to be the focus certainly. President-elect Donald Trump is making headlines this morning and certainly last night when he unexpected announced his nomination, a retired Marine General James Mattis that for Secretary of Defense.
(BEGIN VIDEO CLIP)
TRUMP: I don't want to tell you this because I want to save the suspense for next week, so I will not tell you, I refuse to -- and don't let it outside of this room, do you promise? Raise your hand. We are going to appoint Mad Dog Mattis as our Secretary of Defense.
(END VIDEO CLIP)
BARTIROMO: Now in order to Mattis to take that job, congress would need to waive a requirement that defense secretaries have not been active duty in the last seven years can resume active duty. Joining us right now is former Lieutenant Governor Betsy McCaughey. Betsy, good to see you. Thanks so much for joining.
BETSY MCCAUGHEY, FORMER LIEUTENANT GOVERNOR: Thank you. I'm thrilled with this appointment.
BARTIROMO: I was going to say your reaction.
MCCAUGHEY: Don't let the news out of the studio.
(LAUGHTER)
BARTIROMO: (inaudible) the announcement but is it going to be a challenge because of this rule that he needs to get over?
MCCAUGHEY: I don't think so. It's a formality and the --
BARTIROMO: Yes.
MCCAUGHEY: -- fact is that everyone agrees this is a terrific appointment. He's currently as far away from Washington as can be working at the Hoover Institution. This is not a leader who sought this job but in fact he has a philosophy of fight to win. We've been in the Middle East for 16 years not winning and he has a philosophy about the rules of engagement that's very promising.
BARTIROMO: What are you seeing out there, Dagen, what's the reaction so far?
MCDOWELL: Universally positive. Here is a general, again, Mad Dog as if I know him on a first name bases or by his nickname that who is willing to disagree with Donald Trump. I know that he disagrees with Trump on Russia, for example, he's concerned very about Russia's posture in areas like Syria, Ukraine, the Baltics. Again, the possible power grab, he -- he's also told the president-elect that torture does not work. And one thing that is important to point out, this is a man when he left his job he went on a road trip to visit Gold Star Families of marines who were killed under his command and he visited family after --
BARTIROMO: Wow.
MCDOWELL: -- family after -- family over a period of weeks and he wrote every one of those families individual letters.
MCCAUGHEY: And even though --
MCDOWELL: That goes to what Anthony Scaramucci has been talking about. He understands war and he understands the consequences. That's critical.
BARTIROMO: Wow.
MCCAUGHEY: Right. And even though he has disagreed with Trump on some issues, he's very much on the same page with Trump on the dangerous of radical Islam and the importance of confronting that. And by the way, I think he would be a terrific team member with one of the candidates under consideration for secretaries of state, John Bolton, very experience. Also has a put America first rather than globalism. And --
BARTIROMO: Yes.
MCCAUGHEY: -- international norms approach, they'd be a good team.
BARTIROMO: And we'll also talking about General Petraeus this morning as well which will get to -- he made an announcement about Mad Dog, Mike, at the Carrier -- on his Thank You Tour. He also visited the Carrier plant yesterday in Indiana. He announced this deal to keep jobs in America rather than to -- seeing those jobs go to Mexico. Watch.
(BEGIN VIDEO CLIP)
TRUMP: I will tell you that United Technologies and Carrier stepped it up and now they are keeping -- actually the number is over 1100 people which is so great.
PENCE: The simple truth was, the policies coming out of our nation's capital. We're literally driving jobs out of this country.
GREGORY HAYES, CEO, UNITED TECHNOLOGIES: We had productive discussions with President-elect Trump and Vice President-elect Pence about their plans to improve the competitiveness of the U.S. business environment through tax reform and through a more thoughtful approach to regulation.
(END VIDEO CLIP)
BARTIROMO: Big victory there for Trump in exchange for keeping jobs in the U.S., Carrier will receive $7 million in tax breaks, that's according to the Wall Street Journal. Mike, that was a big deal yesterday in terms of jobs, what's your take on what we've seen?
MURPHY: That was a huge deal. And remember, this isn't even a month after the election. You know, he's not even the president yet. So, although 1100 jobs, I think the symbolic effects here just showing that he's going follow through that he understands business and he's -- now you have the United Technologies company, a multibillion-dollar company coming out and falling in line with President Trump. I think this is why we have the optimism out there, people finally in middle America or anyone who owns a business is now saying, "We're going to have less regulation, better taxes so the U.S. has an opportunity to really expand."
MCDOWELL: Wall Street Journal editorial page, though, is calling this a shakedown.
MCCAUGHEY: Well, you know, I thought they were unfair about this.
MCDOWELL: Well, I'll tell you why, let me explain what they said because it's goes back to what I was saying during the campaign, who makes better decisions about your money, do the companies make them, do individuals make them? This is the president-elect helping this company make this decision about --
BARTIROMO: Yes.
MCDOWELL: -- jobs and he added yesterday when Trump was speaking, companies are not going leave the U.S. anymore without consequences. He's threatening to penalize companies if they ever move job overseas. So that, assuming, does Donald Trump know more about running all these individual companies than the actual CEO's and executives? It's something that's concerning for conservatives.
MCCAUGHEY: Well, but, on the other hand, Donald Trump has made it very clear that he understands, his team understands that ultimately the approach should be to lower tax and deregulate and make this a great environment for all companies to produce jobs and --
BARTIROMO: Yes.
MURPHY: Yes.
MCCAUGHEY: -- but he's not president yet --
BARTIROMO: Yes.
MCCAUGHEY: -- and there were jobs on the line and now 800 families in Indiana will go into the Christmas season knowing they can put food on the table for their --
BARTIROMO: Yes.
MCCAUGHEY: -- families and pay their mortgages. And let me tell you, when I look at that and he got it cheap.
BARTIROMO: Yes.
MCCAUGHEY: $895 per job. I know in New York they paid six figures for jobs --
BARTIROMO: Wow.
MCCAUGHEY: -- on occasions.
BARTIROMO: Well, you know, I mean, I don't think anybody is expecting Donald Trump to be picking up the phone calling all companies, right?
MCCAUGHEY: No.
MCDOWELL: No.
BARTIROMO: And getting into the nitty-gritty of where will the factory be and where won't it be. But this does set a precedent like you said, Mike, in terms of the optimism out there. One by one you're seeing companies at least talk about it.
MURPHY: Yes.
BARTIROMO: -- talk about focusing on America first.
MURPHY: And, you know, to Dagen's point on, is it a shakedown? You know, I --
MCDOWELL: I didn't -- that was not my word. That was the Wall Street Journal's word.
MURPHY: What -- it's true. Right. For what you brought up. sorry, I apologize.
(LAUGHTER)
MCDOWELL: (inaudible) negative, though.
BARTIROMO: Do not mess with us.
MURPHY: That's right. I think, though, you know, there's so much money spent by the government at all times, if spending $7 million to keep 1100 jobs in the country like for me that's a shakedown I'll take all the time. I think it's a great business decision to help our economy.
MCCAUGHEY: But --
(CROSSTALK)
MCCAUGHEY: (inaudible) will get that money back in tax revenue the first year.
MCDOWELL: (inaudible)
BARTIROMO: Let's not forget, United Technologies is a defense company, OK? A big portion of revenue --
MCCAUGHEY: 10 percent.
BARTIROMO: 10 percent from government --
MCDOWELL: (inaudible)
BARTIROMO: -- contract.
MCDOWELL: Right.
MCCAUGHEY: Right.
BARTIROMO: So if you've got the president-elect saying, look, we think you should do this, even if it wasn't an out -- shakedown, you do have the feeling, well, you know what, I don't want to against this person, he's my big major customer. Government, 10 percent contract.
MCDOWELL: And if we have incredible optimism and enthusiasm in this market really, about the -- expected corporate and individual income tax cuts. The massive rollback in regulations, however, if you have the president- elect and people who are in his cabinet who keep going out and saying we are going to make -- we're going to bring pain on you if you move jobs overseas, if you decide to close a plant here we are going make you pay for it. The market will turn around because, again, the market is focused on all the good (inaudible)
BARTIROMO: Right.
MCDOWELL: -- but if you're talking about protectionists, trade policies, investors do not like that.
MCCAUGHEY: Let me point out the contrast, though. I moved to Connecticut. Dan Malloy, the Governor of Connecticut recently contacted the company that had announced that was pulling out (inaudible) so many (inaudible) from this high-tech state and he notified them what their workers unemployment benefits would be after they left, that is the wrong approach. I like to see people in government at least reaching out to companies and saying, "What can we do to keep you here?"
MCDOWELL: But that was a company moving to another state. That wasn't a company moving --
BARTIROMO: Yes.
MCDOWELL: -- to another country. There's a big difference there.
MCCAUGHEY: But the approach -- well, but the --
MCDOWELL: There's a big difference.
MCCAUGHEY: -- approach is we need jobs.
BARTIROMO: Well, GE is leaving. I mean, one of the --
MCCAUGHEY: They left.
BARTIROMO: -- major companies that left Connecticut. But do you think this is a precedence for other companies that they're going to just see this instead of look at it as the writing on the wall?
COURTNEY: I think other companies are finally going to start to feel like thank God something is going to be done. We've had regulations, we've had increase in healthcare costs, we've had the pending FLSA, that just was stopped by a judge in Texas, you know, for those increases to go through. Employers can't afford to do business here and it's why hiring has really slowed down.
BARTIROMO: Yes.
COURTNEY: It's because they haven't been able to hire. They can't invest. So, I think this sets a precedent, a good tone --
BARTIROMO: Yes.
COURTNEY: -- I think it could be very good for optimism for CEO's to start hiring.
BARTIROMO: You have to see this as a positive. I mean, you have to.
MCCAUGHEY: And he's not --
MCDOWELL: (inaudible)
MCCAUGHEY: -- even president yet.
(LAUGHTER)
BARTIROMO: You're happy woman this good morning. Betsy, good to see you.
MCCAUGHEY: Thank you.
BARTIROMO: Lieutenant Governor Betsy McCaughey there. Stay with us. We will bring you live coverage and analysis of the November job report. It is job's Friday, jobs in America begins at 8:00 am Eastern this morning, so stay with us for all of the analysis on where the opportunities are right now. Coming up, former NFL star Joe McKnight dead after a possible road rage shooting, the investigation coming up. And then a tropical paradise turning into a winter wonderland.
Snow piling up in Hawaii overnight. It is bracing for more winter weather over the weekend. Back in a minute.
(COMMERCIAL BREAK)
BARTIROMO: Welcome back, Iowa police investigating a crash that killed three people at Walmart in the small town of Pella. Cheryl Casone with the details now. Cheryl, good morning to you.
CHERYL CASONE, FBN CORRESPONDENT: Good morning, Maria. That's right. Investigators don't believe this crash was intentional. The pickup smashed to the front door of the store yesterday killing three and injuring two more. Police have not yet identified the victims but say two were Walmart employees. Investigators said the driver was an older man, he was taken to the hospital with injuries. Walmart releasing a statement saying, quote, "The company is heartbroken on what appears to be a tragic accident."
Meanwhile, NFL players remembering a former star running back this morning. 28-year-old Joe McKnight was shot to death in New Orleans yesterday afternoon during a road rage argument. Police said that 54-year-old Ronald Gasser killed the former running back after the two got into a fight in the intersection. No word yet on what charges Gasser will face. McKnight, a star running back at the University of Southern California. The Jets drafted the Louisiana back in 2010.
He spent three seasons with the team before playing with the Chiefs in the 2014 season. Well, Hawaii saying aloha to snow. The summits of Mauna Kea and Mauna Loa expecting up to a foot a snow today. A winter storm warning as an effect for elevations above 8,000 feet. These summits are both close to visitors because of icy and dangerous conditions. Your flip-flops not going to work out there. And you can buy anything on Amazon including subscriptions to HBO and Cinemax.
Streaming services for both the premium cable channels hit Amazon Prime yesterday. The HBO package costing 14.99 per month the same as HBO NOW. And then Cimemax is 9.99 a month. Maria, Prime members can already subscribe the SHOWTIME, STARZ and Comedy Central stand-up (ph) probably a lot more entertainment channels are going to sign up to this. Back to you.
BARTIROMO: All right. Thanks so much, Cheryl. Coming up next, Howard Schultz serving up a change to Starbucks. He's planning to step down as CEO of Starbucks, what's next to the coffee chain? That's next. And then futures pointing to lower opening this morning ahead of the important November job report. Little more than two hours away. We've got all that you need to know about job opportunities right now. What to expect from the report and its impact on markets? It's all coming up, back in a minute.
(COMMERCIAL BREAK)
BARTIROMO: Welcome back, Starbucks CEO Howard Schultz surprising investors announcing late yesterday he will step down as CEO in April. He'll concentrate on the company's higher end shops. Schultz says he will be replaced by current COO Kevin Johnson. Mike Murphy with us this morning. And the stock is stumbling on the news, Mike. What's your take?
MURPHY: It was tumbling a lot more than this when the news came out, it was down about 10 percent. Now it's recovered somewhat. I think him stepping away would be one thing but him stepping away to create a new brand within the Starbucks name Umbrella, I think it's a very risky move at these levels. You know, Starbucks is a priced, very high multiple because the brand is so valuable. So now, to go out and start a new brand under that, I think, is a little -- is a big risk and it's a known fact that really -- Mr. Schultz had to really press the board to approve this because they have a lot of reservations about it.
But I will say, he's very an active investor in start-up companies, well, co-investors in a few companies, so the entrepreneurial side of him coming out. So, I like it for him, as a shareholder of the company, though, I would be concerned.
BARTIROMO: I always feel like for a while that he wanted to go into politics. He --
(LAUGHTER)
MURPHY: Absolutely.
BARTIROMO: So, I don't know. I mean, as soon as I heard the news, I thought, well, maybe he -- this is the beginning of his -- trying to swift gears.
MCDOWELL: Right. That was my first reaction.
BARTIROMO: Me too.
MCDOWELL: Does it help the brand, though, because you have a CEO who's been -- who's increasingly political and speaking out. That doesn't necessarily benefit a brand like that?
MURPHY: Yes.
MCDOWELL: Maybe that's the upside here.
MURPHY: Great point. Because he was very vocal throughout the campaign and there was a lot of backlash against Starbucks for it. So, if he's going to continue to -- imagine a business person becoming president or something. That would -- yes.
(LAUGHTER)
COURTNEY: But, you know, you think that --
MURPHY: Who could (inaudible)
COURTNEY: He -- obviously he had stepped down before, it was back in 2000.
BARTIROMO: That's true.
COURTNEY: And then came (inaudible) they came back.
BARTIROMO: (inaudible)
COURTNEY: I think it was 2008 and then obviously has built, you know, incredible amount of new opportunities in business, it's worth what $84 billion. I mean, it's incredible what he has done. But you think about that. He did want to step away, you know, 16 years ago and came back but now maybe that he feels like this is really his time to go pursue some other things.
BARTIROMO: Let's talk jobs for a second. The job report for the month of November out this morning in about two hours expectations 175,000 jobs were added in the month. Unemployment rate expect to hold steady at 4.9 percent. Joanie, you mentioned wages. That's the big headline that we're all going to be scrutinizing. What's your take away here, what should we expect?
COURTNEY: you know, I think wages are actually going to come in better. That could be the good, maybe surprise. Expectations are -- that they'll only be at .2 percent. But I can tell you we are seeing a lot of movement in wages and it really is starting to get to be a crunch with finding good talent at all different levels. EmployBridge, a big piece of our business is actually some of the lower level jobs that are in the logistics business and manufacturing business and employers are really having to step up and pay more than they've ever had to pay before.
So, you would see that, you know, people that worked in a warehouse might - - you know, maybe they used to make a $11 or $12, they are now starting to make $14 and $15 an hour. So, the wages are moving and the wages in this report today are the hourly wages. So, this isn't salary positioned.
BARTIROMO: So, what are you looking for? What's the estimate that you're expecting?
COURTNEY: I think -- I think we could see more like, you know, .4, you know, (inaudible)
BARTIROMO: Up to .4 percent?
COURTNEY: Yes.
MCDOWELL: That's what it was in October and forecasted half of that .2 percent gain. Year over year wages were up 2.8 percent in October and that was the fastest pace with growth we have seen since the end of the recession --
BARTIROMO: Wow.
MCDOWELL: -- in early 2009. So, again, a little -- given what the bond market has been doing with the backup in rates which is a huge story in the Wall Street Journal today. With the bond, we are closing at about a year and a half high on the ten-year yield. Closed at 2.44 percent yesterday. Almost 2.5, 4-5 percent. So, there's concern there about borrowing, spending, borrowing and inflation on the horizon or maybe just growth that people thought --
BARTIROMO: And this is going to be the big last number before the Fed meeting, right?
COURTNEY: That's right.
MURPHY: Yes. If we -- if we get growth --
BARTIROMO: December 14, the Fed meeting.
MURPHY: -- we all want growth and if we get growth rates are going to go up more from here. But I think that's a good trade-off.
BARTIROMO: How does the market react if we get a good number, what do you think? I mean, do we see a selloff given the 10 percent from the lows on election night that we have seen, big run up.
MURPHY: Yes.
BARTIROMO: Five percent higher in the month of November. We get a good job numbers that sort of like that cemented in that, yes, things are getting better, we are going to see rates go higher, do we see the stock market go off?
MURPHY: No. I don't think so. Because we already -- I think it's (inaudible) and almost the certainty that we're going to get a rate hike on December 14. So, I think it's actually good news, it's actually good news for the market again instead of bad news being good news.
BARTIROMO: All right. Big number, big show today. Stay with us. We've got live coverage in the analysis of the November's job report this morning. Jobs in America begins 8:00 am Eastern Time. we will have a full panel to talk about the numbers and scrutinize where the opportunities are. Take a short break. Still to come, President Obama supports requiring women to register for the military draft, what change could mean for our troops? That's coming up next. And let the games begin on CBS. CBS securing the right to stream NFL game to all access subscribers. All the details next. Stay with us.
(COMMERCIAL BREAK)
BARTIROMO: TGIF, everybody. Welcome back. I'm Maria Bartiromo. Thanks so much for joining us this morning. It is Friday, December 2, your top stories right now 6:30 am on the East Coast. Making America great again as President-elect Donald Trump kicks off his Thank You Tour. He's reiterating his campaign promises to keep jobs in the country.
(BEGIN VIDEO CLIP)
TRUMP: We will have two simple rules when it comes to this massive rebuilding effort by American and higher American. We are going to do it ourselves. We are going to do it ourselves. And that will be our new match (ph).
(END VIDEO CLIP)
BARTIROMO: Speaking of jobs, the president-elect also making a surprise hire, announcing that he will nominate General James Mattis to lead the Defense Department. Investors are waiting on the November job's report this morning.
It's going to be a big report, an important report, last one before the Fed meeting. A hundred and 75,000 new jobs expected to have been added to the economy last month.
And the unemployment rate is expected to hold steady at 4.9 percent. Tragedy in Tennessee to report the death toll rising to 11 now. Eleven people dead after wildfires ravaged the state and continue to do so, the latest as the rescue plans try to enforce and contain that blaze.
A health scare for a national hero -- former astronaut Buzz Aldrin recovering after being evacuated from a trip to the South Pole for medical reasons. The 86-year-old remains hospitalized in Australia this morning.
One company seeing a little more clearly when it comes to wearables -- why Snapchat's decision to embrace prescription lenses for its Spectacles could be a game-changer for the company. And take a look at markets, futures indicating a lower opening for the broader averages today.