option will be. so i can't comment. >> make sure you join us tomorrow. "squawk on the street" begins right now. good morning. welcome to "squawk on the street." i'm carl quintanilla with melissa lee, jim cramer, david faber back at h.q. what a night for adele last night at the grammys. a lot of hesitancy about what may happen next in greece. big meetings with the finance ministers and with that europe is hanging up to some big numbers. >> the roadmap starts with greece. the parliament overwhelmingly approving deep austerity measures, including a 22% cut to minimum wages and 150,000 layoffs over the next three years. finance ministers will be meeting later this week to

approve a bailout. >> the gains made on the greek news and in corporate earnings, could we be laying the groundwork for the dow's run to 15,000. there could be a 50/50 chance of dow at 17,000 by 2014. >> apple 500 market watch continues. it continues to battle samsung with a new attempt to block the new galaxy nexus handset, the most credible threat so far to the iphone. >> and average price a gallon, $3.51. up 11 cents and we're not even anywhere close to summer driving season with crude testing $100 a barrel, geopolitical concerns, could prices go even higher? we'll begin this morning with what happened in greece. i wonder if this is how you thought things would go. pretty overwhelming vote. >> greece doesn't matter as much as what germany thinks of greece. and i think that wednesday is the day.

i notice that the futures over in europe and then the market over in europe rallies, then sells off, as people say, i don't know, is it enough for the germans? this is a binary trade now. do the germans like it or do the germans not? i think right now we don't know, which is why i think to be too bullish is a mistake. >> some traders say going into the weekend it was a binary trade over the weekend. either the greek parliament passes or it doesn't. now we're up to the next binary and maybe the next binary is the formal offer to the private bondholders to come in march. >> one of the problems i continually have is that we don't understand the way greece works in this country. we don't understand the way germany works. we do understand greece fatigue. it was on "morning joe" this morning. it is only irrelevant if we get some deal. it is relevant if greece is kicked out. it is relevant if we have the

euro fall big because a lot of the great quarters that we just heard from require the dollar to be stable. you do not want to see the dollar go up dramatically against the euro. numbers get cut, particularly for technology. >> even as we await a deal, if there is one in the offing, we have to look at pictures like the ones we were just looking at. molotov cocktails and people dealing with the government where if you dissent, you get expelled by your own party. >> yeah. 43 members, i believe, right, carl? being sent packing. the loss of standard of living or the decline in standard of living in greece is not to be underestimated. it is very significant. you're dislocating a lot of people there and they're responding. we'll see what happens here between now and march 20th or perhaps really march 27th, the true deadline for default on that roughly 14 billion we're talking about that's due. but they seem closer to a deal. it's not affecting our markets the way it did a bit on friday.

and we're kind of back to not as much concern, perhaps, even though the pictures are quite disturbing. >> david, if we get employment growth, you can isolate europe. i think employment growth has been the key to what we're seeing in the stock market so far this year. it takes our mind off greece. really does. >> yeah, and, jim, to your point, we have spent a lot less time talking about europe, right here on that show and throughout the day. than we had at the end of last year. we're not as concerned about a financial system collapse there or is systemic problem, given the safeguards put in place toward the end of last year. but at the same time, we have to take note of it, be aware of it and continue to watch it very closely because things can change. all it takes is a qualitative change in the belief of market participants and next thing you know, italy's trading at 8% again on the ten-year.

>> is that why we can wrap our heads around the notion of dow 15,000 in the next couple of hours? >> components of the dow are very undervalued. jeremy siegel's work about undervaluation. dividends do matter. i also want to point out that david mentioned italy. the ten-year in italy rallied last night. we are now around 5.5%. we're not in a situation where italy is worrisome for the moment. if you think back to november when our market declined 400 dow points off of italy going to 7%, it's just not as big a deal italy being the third largest bond market in the world. >> that's part of the arguments of our making. the s&p looks a lot like it did this time last year. >> a lot of people got whacked. david, a lot of people were positioned very bullishly last year because they figured everything looked good.

i don't hear the bullishness. a lot of data says there's a lot of people in. i don't know anybody who just likes it. i see a lot of bears -- except last year when some uberbears converts. i expect to see them convert back to bears. >> you hope they do, because it's a bad sign if they don't. >> yeah, but people are flip-floppers. we used to call these people -- i'm searching once again now that my newfound age -- trying to to be a little more statesman. how about misdirected? >> that's good. >> idiot, morons, that doesn't go anymore. >> i'll wait until your old self reemerges. >> are you told not to list the things you normally would have said under the old jim cramer?

by allowing that to come out, one can ascertain what the old cramer would have said anyway. >> i use limericks and rhymes. a man by the name of houdini decides he becomes bullish -- >> likes a martini. >> thank you. rake it out. >> 15,000 dow covers on barron's don't help things, do they? >> no. it was classic. >> all the talk of the golden crosses -- that's when you lure the retail investor in. >> retail investors are still hunkering down. >> they are. >> still like the cd rates and the fabulous return they're giving you -- not! >> hunkered. 11 years of nothing, right? >> it's been right to hunker. etfs as well. >> how many times -- david, how much is the lack of volatility the fact that the goldmans, that many firms have decided, we're moving out? we're not going to do prop trading.

were they behind the volatility? the firms that volcker said can't be doing it? >> i don't know. i would assume -- they certainly added liquidity and perhaps some volatility. as you well know, today's the last day, the comment period ends for the volcker rule. everybody's putting their letters in to that effect, essentially arguing that with the withdrawal of firms like that from proprietary trading, which has already taken place, so the goldmans and the morgan stanleys of the world -- you'll see even more volatility as opposed to less because there's going to be less liquidity. >> i don't think so. >> let's move on. everyone's watching apple. will it hit 500 bucks a share this morning in the premarket. well see. chinese studies have ordered retailers to stop selling apple's tablet, the ipad, due to a fight with another company who said it had the name ipad first.

and patent violations are being charged. a very aggressive apple trying to protect one of its prize names, the ipad. >> also involved with the galaxy, the siri, the unlock technology. i'm going to come out with a far-out, without-a-doubt left field analysis. 3:48 p.m. saturday, whitney houston dies. how many people in the old days would have had to say, i have to break out my albums, i don't remember. younger people flock to this call. why? itunes. people listen to older music because you don't have to worry about vinyl. i was shocked at the outpouring of people in their teens and 20s. this is an itunes era. it is not a samsung era. it is not a hewlett-packard era. it is an eco system and everybody knows the music of yesteryear. i was shocked. i think it was another apple $500 call to action.

>> additional reports today from some that the u.s. air force is going to buy 18,000 -- put some of the flight logs on the ipads, save a lot of weight in flight and therefore saving fuel. eating into market share from r.i.m. >> how many apple devices do you use now? >> i don't know how many we have in our house, frankly. we have the ipad, itouchs, the computer, the laptop -- i don't know. but i worry about it being a closed system when i think about trying to put everything on itunes and then the difficulty -- if you want to go with google in some fashion to organize something, you want to go to the cloud in another way -- i don't know. call me crazy. >> we had a great story this morning about the convergence that everybody's into hardware, amazon is shooting against them. facebook is shooting against them. it's such a juggernaut. it is so hard to derail. what is the favorite gift that younger people give me?

itunes cards. if you're in your teens or your 20s, you're switching abruptly from r.i.m., that outage really did hurt, by the way. you're going toward the iphone. the iphone has tremendous -- i saw a lot of people speaking to siri this weekend. i did not get jealous. it is just incredible the momentum behind the iphone 4. >> the number for me -- forget $500. it's $600 billion market value. we can all remember. wasn't cicso there at one time during the height of the bubble. >> i don't know if it was at that bubble. >> did it get to $550. who was the all-time market cap for -- >> do you think a company that drills holes in different -- all over the globe that can't find enough of what it does versus a company that puts out a product that is respected around the world? talking about exxon versus apple. i do not mind the fact that exxon is no longer the number

one market cap. >> it's a sign of the times. >> i think so. if you can't replace your reserves and another company is able to print money via its products, i'd prefer that one to have a larger market cap. >> shares need to rise another hundred bucks to put apple at a level in which it would be the most expensive company ever, including international companies as well. >> including international, good. >> and it would sell at market multiple, let's not forget that. >> new pressure on rupert murdoch this morning after nine current and past staffers at his "sun" newspaper are arrested in a corruption probe. last year, murdoch was forced to close his "news of the world" after a phone hacking scandal. he's having to put out some flames. >> yes, the "sun," the s-u-n, not the s-o-n. >> yes. >> and now the son, james, will

he fall victim to these concerns? continued focus on a particular memo that mr. murdoch, that is james murdoch received some time back that he claims was at the end of a chain of e-mail that is he hadn't really noticed or seen that talked about this problem sometime back. >> and yet look at the stock. the stock was at $16. it's been a one-way stock -- news corp, still go higher. >> would it be a good time for a spin-off of the newspaper business? >> i'd have to check twitter to see what the man is saying. murdoch is perhaps the most wild card of twitter. he is just amazing. i don't think you want to break up this company. i think this company has a lot of value. i think it's being brought out. a rival cable channel makes a huge amount of money, fox news. it is just a juggernaut. >> the newspapers are -- they talked about a newspaper split for some time.

this idea maybe that rupert would go run them and let james take over the rest. but it's hard to imagine that it would come to that. it is a very small part of the company even though it's had an outsized role in its current state. >> but the question is, if there's a need to protect the rest of the company from legal liabilities borne by the newspaper division, that would be the route to do it. >> although that would be fraudulent conveyance, wouldn't it? there's no way you could do it now. it's too late. >> you can't get that corporate shell after the genie's out of the bottle. but i do think that newspapers are the tail that is not wagging the dog here. oh, westminster -- what a transition. geez, i shock myself. >> the westminster dog show airs tonight on usa starting at 8:00 and cnbc at 9:00. >> i'm a cat person. i did give away the don julio

tequila -- that was the name of the cat. >> ding, ding, the next round of the fight is under way between martha stewart and macy's. martha staurt caewart filing a . stewart's company says her macy's deal doesn't block her from doing business with jcpenney as well. macy's filed suit saying martha stewart was breaching her deal with macy's which runs through 2018. a question that i have is, martha stewart is drumming up and inking all these deals for martha stewart products at staples and all sorts of outlets. is there too much martha out there? >> the ceo of macy's, i know that martha stewart feels -- as reflected by the lawsuit, that she has been underutilized at

macy's. >> the point is to maximize net sales, which she says they did not do. >> and i think that sears/k-mart did not use her brand. her brand, i thought, was prominently displayed at macy's and it was a huge seller for macy's. i do question the notion that they were underutilized since i bought a lot of stuff at martha stewart at macy's which is very easy to see. let's not forget this. this is jcpenney versus macy's. and this is that very aggressive jcpenney style that we are seeing. the ron johnson style, that stock has not quit. it's been a remarkable stock. >> apple/samsung, jcpenney/macy's -- >> these are great battles. when we come back on this monday, meet squawking. he's here. he's going to help us pick out the one dog of the dow ready to break out of the group. he's studied and ready. this is a real dog.

add cnbc gets set to broadcast the westminster kennel dog show. ten years across the globe, italy sells $15.8 billion worth of bonds at 2%, 3%. you are going to want to stick around. [ technician ] are you busy? management just sent over these new technical manuals.

they need you to translate them into portuguese. by tomorrow. [ male announcer ] ducati knows it's better for xerox to manage their global publications. so they can focus on building amazing bikes. with xerox, you're ready for real business.

rick santelli at the cme group. if you look at the dollar/yen, clearly the dollar's trying to get to some of the best levels of the year and it's close. but look at the pound, a much different scenario. this is a chart of the pound versus the dollar, hovering at some of the best levels since november. interest rates, up several basis points. not a lot. if you look at something like portugal, its rates are down but still at lofty levels. so the irony goes on. how are rates going to move the outcome of greece? none of these are fully done. we'll continue to cover them. back to you. >> thank you very much, rick santelli. question of the day, which wall street executive needs to be on a tighter leash, that as we get set for tonight's westminster kennel club dog show? tweet us and let you know. perhaps running on a leash means running out of time, getting in trouble with the board?

>> andrea young needs to be on a tighter leash -- >> isn't she on a leash -- >> she's still there which i always find to be shocking. i find it shocking when you have major government investigations. it's time for people to step aside. witness mr. mendez at diamond foods last week. ready to sprint? cramer's mad dash before the bell is two minutes away. and we're looking to go a different way to figure out which dog of the dow is about to break out of the pack. our special guest is in the boardroom getting ready to go. we're talking about squawk. you see him, the adorable canine. take a look at futures as we count you down to the opening bell here. ttd#: 1-800-345-2550 let's talk about how some companies like to get between ttd#: 1-800-345-2550 you and your money. ttd#: 1-800-345-2550 at charles schwab, we believe your money should be available ttd#: 1-800-345-2550 to you whenever and wherever you want.

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♪ time for cramer's mad dash ahead of the open. we're talking about dogs of the dow, that implies laggards. a number of upgrades of stocks that have been lagging the broader sector. ingersoll rand is one that comes to mind. >> it's a construction play. people are bubbling about the idea that both nonresidential and residential construction are coming back in this country. obviously these are gigantic employers. it could mean a great deal. also by the way, bank of america, hated last year, moving up this year. the bank of america bonds i follow have gone from $81 to $95 in the last five weeks. talk about being out of the woods. >> what a move.

>> major move. >> now that we have confirmation from the bond market, you're a little bit more -- >> i like the banks. i thought that that deal last week was big. the foreclosure deal. i like wells fargo. every time you have europe, you buy a bank and then on wednesday, germany doesn't do the right thing. i like suntrust now. after looking over their quarter, u.s. bank, suntrust. >> and s&p downgraded the tech sector to market weight saying it's extremely overbought, in their words, vulnerable to significant short-term profit taking. and saying since 1970, sectors always fall in february. >> i have to tell you, i look at the charts every week. the ones incredibly overextended were the techs. appnet has been straight up. nvidia upgraded this morning. micron upgraded this morning,

amd. seagate has been up the most. if that one gives up the ghost, i'm going to give it up. >> "squawk on the street" back in a moment. what if you had thl night-vision goggles,

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♪ "squawk on the street" live from the financial capital of the world. opening bell set to ring in about a minute's time. in the meantime, here with jim cramer and melissa on the floor, people are making fun of us -- people having apple $500 hats. but you could have an excuse to wear one today if you wanted. >> i know when you look at the chart, it is ridiculous. you wish for a pullback. they flew so much negative stuff at you before this historic run. and it just doesn't come in. i think that's because there is, once again, a recognition that they've got their earnings momentum. understand, in the end, it comes down to eps. and numbers are too low. >> you can't say that apple is overvalued on any metric. you can't make that case. >> no. this is one of those -- i used to say this. it has to get where it's going to go. it has to get a market multiple.

when it does, it will be way, way overvalued on a weighted basis, but not on an earnings basis. >> opening bell for a monday morning. there's a look at the s&p. at the big board, just energy celebrating its recent listing. over at the nasdaq, hasbro celebrating their new toy this week. >> mattel has made a very big move because of a big jump in the dividend. remember when david faber used to talk about there was a deal on the table with hasbro? >> you've been keeping a close eye on energy today. >> yes. >> crude above $100. and you're willing to make a bold statement with regard to natural gas. >> yes. i think that natural gas has bottomed. there's been a lot of shut-ins. she is peek this morning raised a lot of capital or put in a plan to raise a lot of capital.

i've sold westport, this is a big price target bump. why is that important? because trucks which use a gigantic amount of diesel fuel, they will switch rather rapidly to natural gas. japan switching that -- >> there we have it. we hit it, guys. $500 a share on apple. historic moment here for apple. and here we are just under it. but we have achieved that level. that psychologically important level to many investors out there who have seen it on this historic run. >> a retail name that's made people money. this is not just an institutional name. i point that out because we're all so convinced that retail's made no money. i know people who have 10, 20, 30 -- i've bundled a lot of people at 37 shares of apple. they feel darn good about stocks. >> and that's without a dividend. and after the last earnings report, more speculation about

what would they do with that cash if they did announce a dividend? would a whole new generation of value investors flock to the stock? >> it sure would make a lot of sense because the cash position, given that short rates are so low, has just been a drag on the whole multiple and a drag on the company. >> they would have to institute a dividend that would be near 2%, i would think, in order to compete with some of the other dividend payers out there. >> maybe like our friend john chambers. i still want them to buy twitter. you need to be more socially media oriented, apple. that's my advice to them. twitter is cheap versus what facebook is valued at. >> speaking of facebook, since steve jobs' death in the fall, apple's added more than $100 billion in market cap, which would be the equivalent of a facebook. it added a facebook since steve jobs died -- >> i think the apple iphone is the answer to why that has happened and the battle of competitors with the ipad. they went game, set, match in two of the largest categories

out there. people don't realize it right now, but the iphone has become the standard. >> even as we're weeks away, we think, from an ipad 3, which reports -- >> i can't wait. >> suggest will be in early march. david, it's an amazing thing to watch, even in realtime today. >> it is fascinating. $100 billion in market cap, as melissa said, since steve jobs passed away. you really have to give credit to him, not just because of the products we talk about so often, but because succession was handled extraordinarily well there, it would seem. obviously mr. cook had been running things for some time. but nonetheless, how many of us would thought that would be the case a few months after his death, that there would be this accretion of value. >> the more you dig into it, the more you understand that steve jobs had multiple iterations. i know about iphone 6, ipad 5. we're buzzing about apple tv, which is that combination of siri, again, the voice within

the phone, being able to activate your home entertainment center including your tv. >> are we too complacent about potential competition? samsung's galaxy nexus is said to be a real competitive threat. this phone could threaten the ipad's dominance. >> i don't disagree. the last four weeks of the 2011, i think, was a dramatic market shift. and i do believe that you're right, that samsung is the last into the breach here against apple. but it's not enough. and if this lawsuit actually gains some traction and samsung is shut out of the market, wow. >> it sort of reminds you of the way belichick might coach a game. brady's going to stay in the quarter even though they're up 50 points -- >> don't ever mention belichick as being apple. >> there's reports of this

motorola mobility suit today. they are the kind of company that puts the boot on the throat even though they're well ahead. >> and i think apple's -- >> i don't think you need to say -- >> sanity is out there, jim. >> i think it's big. >> got him early on that one. i sent that to cramer early. >> yes, you did. i remember him as being a good student at school. he took some classes that he did well in. it's much more than that now. >> economics major. >> yeah. tough department, by the way. there's no gentleman "c" in economics. >> i forget we have two harvard graduates standing right next to each other. >> what can i tell you, man? i remember that basketball program as being incredibly weak. now i think that harvard is going to join duke and north carolina and kentucky as a recruitment hotbed. except for you have to go to class. that's the big bummer.

>> we'll keep an eye on apple all day long. there's a story on our website asking whether or not it could be the first trillion-dollar market cap company. >> frightening because it really does overwhelm everything else out there. there's just so many companies, if you added up their market cap, mean nothing versus apple. just incredible juggernaut. >> let's hop over to mary thompson who's watching other stocks for us this morning as well after a lot of headlines from greece over the weekend. >> the markets rebounding after last week's losses, the first of the year for the s&p 500. we're off the best levels of the day so far for the dow and the s&p, as well as the nasdaq. but, of course, they got early support from the overseas gains we saw in the market there is because of the approval of that greece austerity budget. we have seen strength in the european banks as well as the strength we're seeing in the u.s. banks. and of course apple is in focus today as it goes above that $500 mark.

we've been watching diebold. it trades right over here. there was an imbalance on the close yesterday -- or i should say friday, at $34.75. trading at just about $37.34 right now. also chesapeake saying that it plans to have asset sales or transactions between $10 billion and $12 billion this year. it's raising the money to pay down its debt. and we're watching genesee in wyoming. the january shipments fell by 12%. one of the reasons is because it's seeing less demand for transportation of coal because the utilities are switching to natural gas because it's a cheaper fuel for them right now. right now, the dow up. steady gains. back to you. >> thank you very much, mary thompson. mary mentioned chesapeake and their efforts to monetize assets and raise about $1 billion in

seven-year bonds. they're getting ready here. and they're also saying they're ready and willing to cut production. >> this is so important. a lot of people have short chesapeake betting that 2012, 2013, they would have a liquidity problem. i think that aubry mcclendon is taking the liquidity problem off. i think nuclear power in this country is so dead it is scary. coal, really struggling. epa against coal. i continue to want to keep nat gas in front of you because i believe it is bottoming and i believe that that's happening because of shut-ins and aubry mcclendon is leading the way. >> you think we've seen the lows? >> i do. and don't forget that warm winter play. if president obama is reelected, you can just basically say nat gas is the fuel of our future, including for surface. surface is big. >> let's get a cheikh on bonds and the dollar, check in with

rick santelli at the chicago cme. rick? >> i'll tell you, melissa lee, let's keep it simple. let's look at some of the major good credit sovereigns, see where their pivots are to give us an idea how to handicap some of the ongoing news regarding europe. if you look at our ten-year, that's pretty easy even though 2.08% is the top of the range, many traders are watching the 2% as a pivot. if you look at japan, their pivots around numbers as well. but the u.s., their pivot about 1% as you can see on this chart. if we go over to the uk, you raise the bar a bit, right around 2.20 to 2.25. and last but not least, the eurozone same as the u.s., almost mirroring the u.s. a 2% pivot. all of these interest rates have moved just a little bit higher as they reverse spreads against some of the weaker sovereigns. but the moves are not large and we haven't broken through even

though we've snugged back up to the top of the range. want to bring your attention to two israeli embassies hit by bombing attacks. the first was in new delhi. the second after in tbilisi, georgia. planned attacks on israeli embassies in thailand were foiled last month as the war of words and it heats up. we will be talking to the ceo of gulf oil at 11:00 a.m. today. jim, gas prices here, 11 cents, 12 cents in two weeks. >> i want to point out that your natural gas has been very low, 63% of homes that are heated by natural gas, it could be an interesting trade-off between gasoline and nat gas. >> but the summer is going to come and more driving as opposed

to nat gas, what kind of impact will that have? consumers will feel it. >> i'm calling for nat gas to stabilize. a lot of people are betting very heavily against natural gas. i think natural gas can stabilize in part because there's good long-term demand to equal the glut. that's all. >> a lot of headlines today regarding goldman sachs as well. for that, we'll toss it over to david back at h.q. >> we've seen a continued exodus of goldman from some of the top ranks of their banking staff. and today, no exception. george matson says he will be leaving the firm. you add that name to names especially like david heller and edward eilar.

kevin kennedy, richard rusika. a lot of people have left goldman sachs over the last six months to a year. and, jim, the one thing that is key is they've all made an enormous amount of money. if you've been at goldman for 20 years and you're not walking out the door with 50 million buck, you're probably not doing something right. worth noting that the departures have taken place. >> other than kevin kennedy in the '80s, those people were not there. it's incredible to hear this whole generation of sales and trading, which was basically hired by my class in order to be able to get them up to speed, is leaving. david, how much of this is the idea that goldman has to cut its expenses and maybe some of these people were kept around during the downturn and are now told, listen, you made a lot of money, let's make room for others? >> i don't know. that's a good question. my understanding is these guys

have very strong relationships and that wouldn't necessarily be the case. certainly on the banks side. and at the same time, heller's departure, he was talked about as someone who might lead the firm one day. he's a younger guy. so i don't know. i would come back more to the idea that to work as hard as they are and earn not nearly as much when you've already earned so much may be the impetus for you to say, i'll do something else. >> how about no fun? a lot of people are just fed up. they're tired. >> yeah. >> it's been a tough run. >> it has. lloyd blankfein continues to run the company, along with his deputy gary cohn. >> we have to take a break here. later on this morning, the ceo that wants to lead the usa to a new era of driving. but he's having big problems

with the government. his access to a lot of money has just been cut off. and get ready for squawky the stock-picking dog. getting set in the green room right now. getting his nose powdered. take a look at this morning's early movers here on wall street. ♪ [ kareem ] i was fascinated by balsa wood airplanes

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>> kyle tweet, groupon's andrew mason. and jond tweets, the ceo of the united states, barack obama.

why? $15 trillion in the hole and going down on a day when the president will announce his fiscal 2013 budget. he'll speak this morning at 11:00 a.m. eastern time. cramer's "six in 60" a couple of minutes away. but he has some competition this morning. >> we've got our own dog of the dow today. it's squawky the stock-picking cocker spaniel. watch what happens when he's unleashed. we'll be right bark after this pause. ttd#: 1-800-345-2550 ttd#: 1-800-345-2550 let's talk about how some companies like to get between ttd#: 1-800-345-2550 you and your money. ttd#: 1-800-345-2550 at charles schwab, we believe your money should be available ttd#: 1-800-345-2550 to you whenever and wherever you want. ttd#: 1-800-345-2550 which is why we rebate every atm fee worldwide. ttd#: 1-800-345-2550 and why our mobile app lets you transfer funds, ttd#: 1-800-345-2550 execute trades, even deposit checks just by ttd#: 1-800-345-2550 taking a picture, right from your phone. ttd#: 1-800-345-2550 so talk to chuck and put those barriers behind you. ttd#: 1-800-345-2550 are you still sleeping? just wanted to check and make sure that we were on schedule.

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♪ simon hobbs down on the floor getting us a morning edition of the 10. >> good morning. gold up 10% so far this year. it stalled a bis recently. but in the next hour, we'll ask if bullion is a better bet than the market, stocks, of course, except for apple. up 23% this year. as apple hits $500 a stock or a share, we'll be asking how much further it has to run. plus the ceo of fisker will be with us, an automotive business with trouble under the hood. and, of course, lots more squawky the dog.

>> oh, yes, squawky the dog. see you in a couple of minutes. we have to hit "six in 60." goldman sachs upgrades noble corp to a buy from neutral, increased to $46. >> the field off of israel is gigantic. it's noble's. >> deckers reduced at piper. citing an increase in product costs. >> the weather wasn't cold enough for deckers, period, end of story. >> advanced micro upgraded from market perform at bernstein. better second half demand affected by the thai floods. >> people want to be in laggards of tech. they want to recommend them. >> netapp downgraded hold. >> reports this week. i'm concerned. i think that downgrade is right. >> oppenheimer raises micron. >> here we go again. micron, amd, two of the biggest losers last year.

>> and regeneron. >> requires fewer needles in the eye compared to the competitor. they've taken a lot of share. >> yeah. fewer needles in the eye, the better. >> no needles is the best scenario. >> the ceo said, you'd rather be stuck fewer times in the eye than more. that's why regeneron is doing so well. >> for more on those stocks, sots.cnbc.com. tonight, jim? >> magnum hunter, is it too hot to handle? we'll find out tonight. >> in the spirit of the westminster kennel club dog show tonight on cnbc, we want to bring in another stock-picker. let's go to the big-time taped tv intro.

>> they're the dogs of the dow, always running the wrong way, but this morning, we're picking the one that stands the best chance of moving forward, with the help of squawky. jacquey, go get 'em. good dog, good dog. >> so here's how this works. two rounds, one at 10:00 this morning. it's alcoa versus hpq. round number one is jpmorgan versus bank of america. we are actually doing this. squawky, our mascot, is going to pick the stock most likely to break out. our handler is about to release the hounds. >> can i just poin out that squawky's been negative this whole -- >> what is jacquey's track record? >> jacqueq suddenly goes positive? he thinks he's houdini. when these guys come in late at this level, do i really care

whether he picks bank of america. >> is he eating out of both bowls? >> he's a flip-floppers. i've seen those in our time. >> are we going to try this again? all right. >> could be an xlf broad move. >> release the hound. >> oh, geez. >> jpm. >> he's going to eat out of the bank of america bowl now. >> you can't upgrade them both. it's one or the other. maybe he likes the regionals. what's he think about wells fargo? >> definitely positive on the sector overall. unlike you, i might add. >> i like the regionals. squawky's been late to almost every move i've ever seen. is this the level to get jiggy? >> jiggy like the dog on "the real housewives of beverly hills". >> i'm not as close on that show as i could be. >> your level of tentativeness going into a meeting on wednesday of finance ministers

that needs to get this process going? >> having the market take ton the woodshed the last time germany spoke, should we suddenly think that germany is in love with greece? can squawky wait till wednesday? >> we'll have him go to italy or spain first and -- >> that is so great. >> in the semifinal, we have alcoa down 37% versus hp down 37% as well. that is up in the next hour. right now, it is the battle of the dow banks. jpmorgan down 16%. bank of america, as you saw, down 41% in a year. that's the deal. that's squawky as we introduced him to america today. >> whether we have clarity on the actual pick is unknown. >> will there be an apple $600 versus on apple $500? could we get squawky to go back and forth on the question of the day? boy, it's tough. it's tough being a dog watcher here. >> we'll see you tonight.

>> thank you very much. >> later this morning, wall street's chief lobby group gets in its last licks on the volcker rule. we have the man in charge. also coming up, the ceo of gulf oil, where the numbers stand 20 minutes into this trading day on monday. [ tires squeal, engine revs ] ♪ ♪ ♪ [ male announcer ] not everything powerful has to guzzle fuel. the 2012 e-class bluetec from mercedes-benz. see your authorized mercedes-benz dealer for exceptional offers through mercedes-benz financial services. hey, it's sandra -- from accounting. peter. i can see that you're busy...

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good morning. welcome back to "squawk on the street." dow looking at a 52-point gain this morning. 12,853. only 150 points away from 13,000. level it has not seen since may of '08, about four months before the financial crisis. s&p up 7.5. nasdaq up 24. commodities as well. gold, crude and copper, keeping an eye on those on this monday morning. on to a few "squawk" stories. boeing reporting its latest glitch in the dreamliner will not slow down production. apple making history, crossing that key $500 mark earlier this morning. first hit $400 nearly six months ago. and the s.e.c. beginning a broad

examination of the private equity industry. the s.e.c. is looking to seek information about the business practices of some of the country's largest financial firms. >> as we saw oil is moving higher, as of course gas prices here in the united states already making national headlines, let's get over to sharon epperson for more at the new york merc. >> the fact remains that the austerity measures in greece that have been taken has been something that's helped to advance oil prices and the other commodities as well with the strength in the euro near a two-month high and the fall in the dollar. we're watching refined fuels very carefully. gasoline prices were actually in the lead for a while here in the energy complex and gasoline futures are up 10% in the past month. pump prices at $3.51 a gallon, advancing very quickly in the last couple of weeks as well. the highest prices we've seen

for this time of year. we're also watching what all of this means with high prices in terms of the impact on demand and morgan stanley out with a note today, noting that when you look at oil prices priced in euros, priced in dollars, we are very close to the peak price that is we saw in 2008, particularly when you look at oil priced in euros. this is something that could eat away at demand going forward. demand destruction, definitely something that traders and analysts will be watching with prices at these levels. back to you guys. >> thank you very much, sharon epperson. markets are trading higher this morning. last week, one of the worst weeks in the two months for the market. betts bring in brian belski with oppenheimer and company for his view on the markets. brian, great to have you with us. >> thanks for having us. >> i want to start off the conversation with apple which crosses the $500 mark this morning. you're overweight technology. at this point, do you feel like this is a sector that's being driven largely by apple, just by its sheer market cap and weighting in the indices?

>> the stock clearly has a big impact on the sector. it's our largest holding in our large cap core portfolio that we manage for oppenheimer private clients. we're happy with the performance. one of those stocks that everybody wants to bet against. you talk about climbing the wall of worry, apple is that wall. but apple has the kind of innovation that really speaks to the structural change that we've seen in technology the last few years. so that stock in particular is still very important and we think continues to be quite strong within the sector. >> when you're deciding that technology deserves an overweight and continues to deserve an overweight rating, how important is apple in and of itself in driving that decision because it's such a large part of that subsector index? >> very important. but it's also very important to a sector like consumer staples. for all intents and purposes, apple's becoming more of a consumer staples type stock. if we want something, we're going to go out and buy it and we're going to go buy an apple product.

it's become very important on the consumer side as well. >> your target $1,400, intact? >> very much still impact. sooner than later. >> it's not changing. you're not bringing it up -- >> say we get to $1,400 in two weeks, what's changed from the longer-term perspective? we need to see structural changes in washington in terms of cutting costs. we need to see further measures on that from a longer-term perspective. short term, people are excited about equities again. inflows back into equities last week. we think that could be a short-lived response. last year, inflows in january and february. and ten months into bond funds. we have problems in terms of debt. >> but the note you put out on friday is more optimistic saying you believe profit margins are not going to fall away as much as people expected. you also say there was an overemphasis on negative stuff at the end of last year and that that will dissipate this year. why do you not call the market

higher than this 4% target from what we are now? >> we've come up from 1,250 or 1,270 at the end of the year. we have this gradual lift-up here because people were so negative. take a look at sector performance, we were very defensively positioned last year. utilities and staples were the best-performing sectors up double digits. that's fed the rally into tech and financials because most underperformed last year. this is a classic melt-up in stocks. >> i guess what i'm asking you, is the market rerating? will it go to a higher price for any set earnings? in which case your target would look a little bit old? >> it's an excellent question. we think we could overshoot the 1,400 level but not by much. frankly, the market from a longer-term perspective still has worth to do. everything is reverting to the

mean. and interest rates will, too, over this next cycle. >> but you're not considering the possibility that retail moves in in a big way, that these barron headlines about 15,000, start feeding those -- >> well, think about this. by the time barron's started talking about dow 15,000, you should get a little bit worried. >> are you? did it make you -- >> yes, yes. here's the deal. we have the very good fortune to have three jobs at oppenheimer. we manage portfolios. we do institutional research and we talk to private client. when you talk to private client, they are nowhere near putting money into equities yet. they still are worried about losing money. they're still worried about the election. remember, this is going to be, i think, a pretty volatile year. we haven't even entered the guts of the election yet. and people are emotional about their money. and psychology runs markets on a short term. near term, this is still going

to be a year of volatility until proven otherwise. >> brian, good to see you. brian belski of oppenheimer. speaking of volatile events, let's get over to athens and check on the latest with julia chatley. two things we have to achieve, one, further cuts demanded on wednesday, and the second is that those political leaders sign up to say they'll still enact austerity after the election. do you think that they are going to do that at this stage? >> reporter: you know, simon, it's a very important point and i'll address it by giving you the comments of the new democracy leader. he's arguably reporting to the polls likely the next leader of this country. and he said to people that we're going to sign the deal. i asked people to sign the deal with the ability to negotiate and change current policy. now, i didn't realize there was

an additional negotiation going on here. if i were at the troika, the eu, the imf or the ecb, i would be asking him to explain exactly what he meant by that. as you're showing now, while the vote was going on, tens of thousands of people gathered in the streets outside parliament last night. i saw how quickly a peaceful protest with family gathered here to show their discontent turned into something extremely violent. 30 buildings or more set on fire and 150 buildings or shops looted. social unrest here is likely to remain a key concern ahead of the euro group. but as we continue on, and there are a number of key risk events coming up. the deadline of the psi, the bond writedown deal. we still need to know what the participation rate is going to be on that. and back here within greece, they need to vote on how these measures are actually going to be implemented. that's another thing that's going to go through. the people here demonstrated

quite clearly last night that they can't take or they don't want additional wage cuts, additional pension cuts and additional job losses. simon, back to you. >> julia, thank you very much for that. joining us live there from athens. we stick with europe and its effect on the markets. let's bring in keith mccullough joining us from hedge eye with a view on greece. i know this is not what you'r clients were focused on, but what do you make over what you've seen over the weekend? >> burning buildings is definitely not going to stimulate growth. pretty sure about that. it's pretty sad to watch. the reality is that this is all part of the keynesian bubble. we've had a bubble in japan, a bubble if europe and now we're developing one here with this budget deficit. you can see it doesn't end well. at the end of the day, inflation slows growth. i think that's going to be ultimately what you see across europe, never mind in greece, with oil trading at $119 a

barrel brent. >> as we watch the regulators in europe obviously fight hard to keep them in the fold, does that suggest to you that contagion is -- would be worse than we think it might be? >> i think you're right, like certainly thinking about it on different durations is important. there's tremendous political pressure for politicians to be political. and that's probably why they like john mainer kane so much. they try to deal with their own political problems and keep all these countries in the mix. i'd rather see them get rid of the country in the european union. that would get me out of being short the euro. i think growth could start to v-bottom. instead of being this protracted case of potential stag affiliation in europe for a long period of time. >> you describe -- i think this is an important point. you accurately describe where the market is. the market believes that europe is still kicking the can down the road. that ended on wednesday.

and if you look at what is coming out now from the germans, no more promises is what they're saying. they've asked everybody to sign up to enact austerity after the election. and samarus is saying, no. the can is no longer being kicked down the road. the writing was put on the wall on wednesday by the rest of the european union. i think the situation is changing quite dramatically, sir. >> you think that european growth is accelerating, simon -- >> no, i don't think that there is now a view necessarily to continue to pump money into greece. >> kicking the can down the road -- >> the austrians, the dutch and the germans, it's so extreme, i think this train of events could fail and it could fail on wednesday. >> if it does, that would be a surprise. at the end of the day, what i'm talking about when i say kicking the can down the road, it's really keynesian economics. you can't solve a debt problem

with more debt. what's going to happen here is that inflation is going to rise and the kicking of the can is really going to try to deal with this for a long period of time. functionally whether or not the germans agree wit -- again, they have to vote for this on the 27th, i believe. there's going to be a lot of constipation politically. and that's going to be the can. the can stares you right in the face. no matter where you go, it's going to be there. you're going to have 20% unemployment in greece. if you're under the age of 25, it's going to be like 50%. that's not going to change with any of these people with any of their political solutions. >> keith, thank you for joining us. >> thank you. fisker automotive looking to bring its uberluxe car to the market. will it crash and burn? we have an exclusive interview with the ceo of fisker coming up next. [ male announcer ] the draw of the past is a powerful thing. but we couldn't simply repeat history. we had to create it. introducing the 2013 lexus gs,

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♪ uncertainty weighed over the greek bailout. today back in the green on the greek approval of austerity measures for the bullion. where next will gold trade? dave megaer joins us now from the cme group. good morning to you. gold is a very interesting trade. it's done really phenomenally well as against the broad equity

marke markets so far this year, up 10%. then you get that stagnation for two weeks. how do you describe that? how would you explain that? >> that's not hard to explain at all, considering what we've had this dark cloud looming overhead for many weeks now in regard to the greek sovereign debt situation. that's been the main concern for this gold market and why you've doan seen the consolidation since the risk-on rally began in late december. we see a positive outlook for gold in the months ahead. >> how do you argue that? >> that's very easy to do, as a matter of fact. we have a central bank situation of great liquidity in the market. here domestically, we have the fed talking about low rates through 2014. we have ecb lowering rates or doing everything they can to support their economies. and in addition to that, most importantly, in my opinion, something that i don't believe has got enough headline lately is we have a central bank-buying mentality going on. them diversifying away from

their currency structure or their reserve assets more to gold. we're really looking at a situation where central bank buying or lending which we say for so many years, has now turned the corner and they've been net buyers for a long period of time. >> let me come back to the main point, which was the q.e. isn't there a difference on the way gold will be affected from the massive q.e. we had from the fed last year, which is dollar negative, to now the ecb embarking on massive q.e. in delay, which is dollar positive and therefore arguably could send gold down. >> i don't necessarily agree with you on that. let me explain to you why. what we've seen is a very strong relationship or a negative correlation to the dollar. so obviously we believe that europe is going to be coming back strong as this european sovereign debt situation slowly, slowly gets set to the sideline. that's our opinion. so on the back of that, what we believe we're going to see is more of a euro rally, a little pressure on the dollar, and this

is what we believe is going to continue here in the months to come. so we actually view this as a positive situation as we turn around the greek sovereign debt situation and europe outlook looks a little brighter in the months ahead. >> dave, very near term, does it matter at all in terms of the trade on gold, the pricing, that the cme has cut margin requirement, that that will go into effect today? >> melissa, that's a great question. actually the near term is the biggest concern that we have. you started off this piece by explaining how far we've seen the rally go since the beginning of the year. that's really our biggest concern. it's not necessarily the long-term outlook that we have a problem with. it's the fact that we've maybe gone a little too far too fast and probably do a little bit of a consolidation here. once again, we believe we have the fundamental backdrop for prices to be supportive. we just don't have the driving force right now, particularly after a 10% rise since the beginning of the year. >> i would think cutting the margin requirement would be good for gold? >> very much so. and not a lot of people

understand that august and september is when the cme increased margin requirements by over 50%. now we're seeing the opposite of that. obviously only a 13% decrease in margin rates. but obviously that's going to increase the speculative demand for gold and obviously potentially increase liquidity and increase buying. we think that's one more positive for this market. >> thank you very much. >> we're watching shares of msg, another 52-week high. let's go back to david faber back at headquarters. does this have to do with lynn sanity? >> surely does. undrafted. jeremy lynn led the knicks to their last victory as their point guard having scored 20 points or more in each of those games. and the stock is up sharply. msg itself in the midst of a nasty fight with time warner cable about carriage. in fact, if you are a new york

knicks fan in new york city or certain parts of it and you are a time warner cable subscriber, you haven't been able to watch these games unless they've been on espn or tnt. shares moving up on prospects for the knicks and the possibility they may reach the playoffs, the return, by the way, of amar'e stoudamire and carmelo anthony, not too far off. stoudamire, i believe, tomorrow in toronto. the new york rangers having a really good news, if anybody knows or cares about hockey. i heard some clapping out there. they own the rangers as well. back to you, simon. >> thank you, david. david faber there. coming up on the program, the ceo of fisker automotive. this is an rc robotic claw. my high school science teacher made me what i am today. our science teacher helped us build it. ♪ now i'm a geologist at chevron, and i get to help science teachers. it has four servo motors and a wireless microcontroller.

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cars, fisker automotive is vowing it will survive. phil lebeau joins us with an exclusive interview with fisker's ceo. phil, good morning. >> reporter: good morning, carl. i'm joined by henrik fisker, the founder and ceo of fisker automotive. carl mentioned the d.o.e. loans. where are we in terms of your negotiations with the department of energy? we're going to show everybody the amount of the original loan. where do things stand? >> we started out two years ago with getting a commitment from the department of energy. and we set out some milestones for this loan which were looked at in a way where there was a lot of risk because we hadn't developed this power train yet. this is the most power train in the world, engineered right here in the u.s. we missed some of the milestones but we achieved the biggest milestone, which is the car is here today for sale at a fisker dealership. right now, we're negotiating with the department of energy on the next milestones and

obviously we take the learnings from the prior milestones and want to be conservative and make sure we can hit them. >> reporter: here's a statement from the d.o.e., they said, the department is working with fisker to review a revised business plan and determine the best path forward so the company can meet its benchmarks to produce cars and employ workers here in america. you told me just a few minutes ago, there's a limit to how long you can talk with the department of energy. at some point, if you don't get this money, do you go elsewhere, whether it's the capital markets or elsewhere for funding and you say to the department of energy, thanks, but we need to move on? >> fisker is a self-sustaining company with a karma that we're selling currently. obviously we are making money every day with the karma, selling the karma. we're in these negotiations with the dmt d.o.e. and they're taking longer due to the political things happening at the moment. we have to just keep on negotiating. of course we are looking at alternatives that would be prudent of us to do that.

that's what we're doing. >> reporter: is there a ballpark? two months, three months, where you say we either have to cut or go forward? >> i think it's probably going to take several months still to do these negotiations. so we have time to look at alternative funding at the same time. >> reporter: will you keep production in delaware if you find alternative funding because you won't have that requirement with the department of energy? >> as of this point, we are definitely committed to delaware. >> reporter: let me ask you about the karma here. 200 to 300 have been sold. but there's been a lot of criticism of this vehicle. 52 miles to the gallon. a lot of people look at this and say, is this what we're getting for the investment in electrical vehicles, shouldn't it deliver more? >> this is the most advanced technology in the world. it's designed and engineers right here in the u.s. it just won top luxury car of the year award. no american car manufacturer has ever won that award.

and spending on who's testing this car, you get 112 miles to the gallon. you can drive to work every day without using a drop of gasoline. and most consumers will get better fuel economy than a toyota prius. >> reporter: henrik fisker, founder and ceo of fisker automotive talking with us as they officially launch the karma. one other note, carl, a 123, the battery maker for the karma, there's no guarantee that they're the battery maker for the next model. that's part of the story to watch there. back to you. >> phil, what other companies are posed to supply that battery if it's not a 123? >> reporter: there's other suppliers out there. a 123 is certainly one of the leaders in this market. but there are other suppliers. >> phil lebeau, thanks so much for that interview. tech titan apple making history today, crossing $500 a share earlier.

what is next for this seemingly unstoppable momentum trade? we have the trade on apple's big move just after this. [ male announcer ] if you believe the mayan calendar, on december 21st, polar shifts will reverse the earth's gravitational pull and hurtle us all into space, which would render retirement planning unnecessary. but say the sun rises on december 22nd and you still need to retire, td ameritrade's investment consultants can help you build a plan that fits your life.

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france has lifted its short selling ban on the shares of top ten financial institutions. the ban went into effect in august during fears of a financial meltdown in europe. atm maker diebold reporting a quarterly profit, beating expectations. shares up 14% in the premarket. right up, up 10%. and the airbus ceo saying the company will fix problems in the a-380 jumbo after cracks were found in the wings last month, quote, whatever the cost. i guess everything has a price and thankfully they're willing to pay it. >> yeah. do they have a choice, i guess? it's a broad-based move we have so far this morning. financials leading the way. but no great moves within that. bank of america up 2.1%. let's have a look at the

advances to decliners. and over at the nasdaq, the same. >> apple hanging tough above that key $500 mark. $498.60 at the moment. let's talk about the tech titan's parabolic move higher. scott sutherland covers apple. great to have you with us. >> thank you. >> more and more people are wanting to shoot against apple at this point. they've been all wrong. at this point with $500 crossed, do you think we slow down a little bit in this upward trajectory? >> i think obviously apple's had a great run here over the last month and year to date, built off a strong fiscal q1 results with the iphone sales and speculation surrounding the ipad 3 launch. there might be some consolidation here. but valuation still is not that expensive. i think longer term, it could still move higher from here. >> what premium to the market does apple deserve by way of multiple, in your view? >> i'm not sure if it deserves a

premium. i just don't think it deserves a discount to the market here, trading in the low teens. i don't think it deserves a discount here. there's still low market share in many of their markets. i think that sets the table for still lots of growth for the company. i think at least a mid teens multiple is more fair for them. >> should we be more concerned -- you always grow wary of a stock when there's no reason to bet against it. but should we be more concerned about samsung's galaxy nexus phone, which is supposedly the closest competitor to the iphone out there to this point? >> we saw in calendar q4, apple and samsung are doing both very well. i think they both have the right strategy. multiple screen sizes, letting the customer choose what they want. but there are several other players out there losing market share. research in motion, nokia have been the two big gest losers ou there in market share.

i think there's a lot of others out there, outside apple and samsung. i think apple is going to grow at their expense. you look at apple in new market product categories, like apple tv, that could be a growth driver. it's hard to bet against them. if they start putting cash towards a dividend, it will open up to new investors. >> the only thing apple is better at than designing phones is designing lawsuits, it was said earlier today. i wonder if you think the legal questions surrounding their extraordinarily aggressive legal strategy is worrisome or any kind of potential liability to the name? >> at this point, there hasn't been. you have to look at who holds what -- computers are becoming more like phones with connectivity or vice versa? clearly aggressive, we're watching the motorola suits. new suits against samsung here

in the u.s. announced today. clearly that creates a lot of concern in the short term around the stock. they've definitely been more aggressive than most companies, which has created a whole bunch of patent litigation. >> scott, good to speak with you. thanks for your time. >> thank you. it would appear the murdochs can't keep themselves out of the headlines bringing several new arrests at the uk's "sun" tabloid on suspicions of bribing officials. kayla tausche has more. >> rupert murdoch heads to london thursday to rally the troops after eight were arrested on saturday, five of which were "sun" employees. the big issue this time is bribery, whether employees at the "sun" engaged in improper payments to police. a victim's lawyer said he will come to the u.s. to look into

the allegation. the story line has changed. but this all comes as news corp made much progress on settlement with victims. 54 out of 60 filed in october were settled. an additional 15 last week were settled. news corp spent $200 million so far on the scandal with about $87 million to be incurred. but 50 more suits are expected to be filed in the coming weeks with the first civil trial involving the case of charlotte church starting february 27th. an independent inquiry has been going on for the last four months and it's examining the questionable ethics of uk media where many testimonies pointed to practices at papers like the "sun" rather than just "news of the world." in a memo to employees, rupert murdoch says he maintains total commitment to own and accomplish the "sun". >> earlier in the show, we were talking about the sun and the

son, s-o-n, james murdoch. where does he stand particularly as it relates to his having an e-mail that was discovered in which he was alerted perhaps to this hacking long before it became widely known? >> of course, and the deletion of that e-mail -- one of the paper's editors e-mailed murdoch saying, unfortunately it is as bad as we feared. that e-mail was deleted on january 15th of 2011 after which the company was already aware of how wide this actually is going to go. so the levinson inquiry, the independent ongoing investigation, has called it a deliberate destroyer of evidence, called the company that. but it's interesting, remember in november, james murdoch stepped down from the board of "the sun" and from "the times" of london. he said he wants to refocus his responsibilities on bskyb. but you wonder what you expected to come at the "sun" when he

decided to step down. take a look at news corp shares. what does that say about the leadership of the company? it's not trading up. 8% year to date. >> not an impact since the summer on the stock price. $200 million on this. but they're spending a lot more buying back stock, multiples, as much as $5 billion. that's helped support the shares, an enormous buyback. >> looks like that was a well-timed buyback. >> they did that to answer their shareholders. >> and rupert even said in august, if i get hit by a bus, this would be a company run by chase carey. >> kayla, thank you. >> can i ask you a question, david? most britains knew this was how they behaved. it was taken for granted. there were back handlers flying throughout the newspaper industry. let me ask you a question. if you took an opinion poll amongst the british electorate and the majority of them said,

we believe that these businesses behave in this way, do the murdochs not have a fiduciary responsibility to actually investigate that public perception? because at the moment what we're seeing is whether there's any evidence that -- should they not have been proactive in that environment or not? is that beyond the bounds of their legal responsibility. >> proactive in an environment in which it was widely known or widely suspected that this is how newspapers behave. >> it's a fair question. one could argue that was the case. they have said they had absolutely no idea. correct, kayla? >> right. >> murdoch said all along he simply was unaware of it. it may seem laughable, i know. >> they created this standards committee in july. this has been going on for a very long time, at least as far as the settlements of these lawsuits. they are late to the game here. no one was disagree with that. >> guys, thank you very much. a huge story.

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it has micro-particles so it enters the bloodstream fast and rushes relief to the site of your tough pain. it's proven to relieve pain twice as fast as before. bayer advanced aspirin. it's been a full-on momentum name since the beginning of the year. but a few names have lagged the rally. are those dow dogs poised for a happily ever after? brian shactman joins us with those dogs of the dow. >> you pick the highest yielders in terms of dividend, names that have struggled a bit and you see what happened. for to it work, the stocks have to go up. picking three of the best is tricky. take verizon. it yields more than 5%. but the stock is down about 6%. a lot of the mangy-looking mutts from 2011 have come out pretty strong in 2012. bank of america, alcoa, caterpillar have paltry yields. they don't make the cut either. let's get to our three picks of

the best yielders. put the first one in, we want to start with general electric. why? here's the argument here. you basically have a stock if the financials continue to improve along with a broader economy, you get a double benefit from ge. you get improved results from a streamlined ge capital, big gains from ge's industrial units. they probably won't hike the dividend until late in the year. but yields already better than 3.5%. and if ge capital is allowed to return more capital to the parent company, that payout might be even bigger. number two, next up for the groomer, jpmorgan. this is interesting. it yields a touch below 3%. it has a very strong balance sheet. if the mortgage mess begins to work itself out, earnings could pop. if europe and greece keep things together, the stock could follow. our final pooch for the makeover -- and this is a sneaky pick. let's see what we come up with. it is dupont.

it's our bulldog pick here. the yield is right in between ge and jpm's. when balancing dividend and share appreciation, citi says this year to expect an 11% return on share price on top of that dividend, 15% return, not bad for the dow. coming up on "power lunch," we'll release the hounds with some potentially profitable names that we had to sniff around for, carl. back to you. >> thank you very much, brian. interesting talking about this notion all day long, somebody tweeted this morning, which stock has had the better run-up this year, apple or cat? can you guess? >> cat. >> nice. it's true. despite all the talk, we give all the attention and love we give apple. >> it couldn't be the obvious one. it had to be cat. >> it counted for a large part of the dow's gain in the month of january. >> wouldn't it have been great if apple was actually in the dow? we would be 10% higher on the dow if apple was a dow stock.

that could have had a real impact upon jobs and potentially growth because it could have changed the psychology, if the dow was 10% higher now. >> that is true. >> but because of the technical thing of it not being included -- it would have garnished more headlines. >> yeah. quick programming note as well, the reason for all the dog talk, tonight, the 136th westminster dog show on cnbc, 9:00 p.m. and 12:00 midnight. we've been giving you small glimpses of squawky, our trusted four-legged friend. best in breed stock-picking cocker spaniel. there he is with his handler. we'll hear from him in a bit. next this morning, tournament time. which dog of the dow is about to break out? we have a special four-legged analyst on the case. squawky!

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♪ time to head over to squawkie and she is being led by her handlers montalvo. you have another winner to advance to our finals? let the magic begin. >> how do you know that squawkie is a woman? >> it said so in the prompter. >> i see. >> what is squawkie doing? >> obviously a choice between hp and alcoa. >> stay. go.

>> it's hp. >> without a doubt. >> oh, no. she goes back -- the same thing happened. she just can't decide. >> maybe she's saving the best to last. >> a little lame, but -- she's supposed to pick. >> two times in a row, the dog has gone to the right, then to the left. >> what do you think her ten-year lipor average would be? that would be an interesting test. what quartile of professionals she would -- >> she's a value investor, apparently. >> what choice does she have? hp and alcoa. >> right. >> okay. it's tweet time. >> yes, it is. in honestor the squawkie, we're asking you which ceo on wall street should be on a tighter leash and why?

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they have missed earnings without telling anyone. gregory treats barack obama ceo ofu hink. he continue toss spend wildly making promises he'll never be able to keep. >> and the only 16 months since the last recap. investors have all sorts of gripes with ceos for all different reasons. >> absolutely. it's interesting to see which ceos would have been on a short leash last year compared to this year. remember when we were talking about brian moynihan sometime in the fall. now he looks like a hero. he would have been on a very short leash last year. >> and all that concern about cook at the helm of apple, and would he carry on the legacy, all the huge amount that was written about that and discussed

about that, and yet still the stock is up over 20% this year. >> 100 billion in market cap, more than at this point. >> simon, we haven't had a chance to talk to you yet about this morning about the events in greece over the weekend, obviously disturbing pictures in athens. some of the worst violence we have seen since may of 2010. your expectation for this wednesday meeting? >> i think it's hugely important. i appreciate -- the sort fabric is -- and the pictures are dramatic, but somebody interestingly said this morning greece is just ticking boxes, it looks back, but all they're doing is ticking boxes. look at the french's triance, about the need to get more than promises from greece. they said yesterday all parties had to signed up to maintain austerity.

samuris, likely to be the new prime minister in greece, said vote for this, we can renegotiate after the election. that's not what the germans and austrians and dutch are asking greece to do. greece is in violation of what they said last wednesday. i don't think we're kicking the candidates down the road like people assume we are. at best -- if you talk about tight leashes, they'll be on a very tight leash come march, when maybe the money is in an escrow account. we'll have a series of flash points, excuse the pun, again and again and again. the leash is getting tighter, the can is not going down the road like people think it is, we are storing up potential huge problems. if you believe a disorderly default in greece is likely, and if you believe that the firewalls are not strong enough. i think the -- they think they're firewalls to italy and spain are bigger than they might actually be.

>> and we'll see. we always knew implementation would be tougher than the gauche, but we're getting a taste of what the next few weeks and months will be like, i sue it will be a big topic for fast. >> absolutely, as well as do you 17,000, do you 15,000. we're have jeremy siegle who has cited throughout that "barron's" argument tonight for the reasons bihind he kate kelly has that story. >> it allows that unleashed potential to take off, and we'll see what happens. >> as he said, he's talking about long, long cycles, you know? an bug juxtaposition between him

and the "fast money" traders. that i have to see. here's what you might have missed if you're just tuning in. >> welcome to hour 3 of "squawk on the street." here is what's happening so star? >> the president has never put forward a single serious proposal on fundamental tax proposals. if he wants it, p ultimate it in your budget. >> the market tend to move in stairstep functions. we've had a big move up. i think we'll get consolidation and sidewise move here. >> we need to do some things to get the economy growing and invest more in our future, but we can't do it also we do something about our structural deficits, because those won't be sustained if we don't put our finances in order. >> this is a binary trade. do the germans like it or not? i think right flow we don't know, which is why i think it's

a mistake. >> it is just incredible the momentum beindependence hind the iphone 4. >> the number for me, it's not $600 price stock, but 600 market value. >> there we have it. this is a historic moment for apple. >> jpmorgan could be very right. >> but he's going to eat -- >> you can't upgrade them both. it's one or the other. >> that i think would get me out of bus shore the euro. instead of being this protracted base of potential stagflation for europe. >> good monday morning. welcome to the third hour of

"squawk on the street." the dow hanging on to a 42-point gain, the nasdaq up 15. goldman sachs shuffling its ratings, the firm jbeil gradiin i.t. stocks taking a hit after is it equity strategy downgrades. they say that it's vulnerable to some significant short-term from which profit taking. time for the road map. austerity measures s we'll go live to athens to get the latest. gas prices up 12 cents in the last three weeks alone. are we looking at $4 gas by the time summer travel season arrives? we'll shed some light on that

affects trading here at home. >> and on the voelker rule, tim ryan, the president and ceo is here with his latest views. voelker speaking out at well. first we'll get to gary kaminsky, talking about this milestone, gary, with regard to apple. by the way. >> good to see you again. >> it's been a while. good to see you. let's touch on what's happening with the s&p here. if you look at the european credits. in fact, the european financials, the credit side trading at intraday lows. what stands out in my mind is

something you and i talked about, i think it's probably talk about three months ago, and it continues to be the overarching theme, which is if you are a professional active portfolio manager and you don't own this stock, you don't even have -- the orchl question you're ever asked is why don't you own apple. again, as long as this continues to be such an important component within the index, if you don't own it, it's essentially being short the stock every day, and that will continue. >> is it masking broader trouble in the market, slowing growth rates in sector that is donnell include apple? is it dangerous, because it's skewing the averages so much? >> it's a good question. it's hard to think of a similar situation where such a dominant stock has such a dominant impact. i have to go back to the early '90s, call u.s. surgical, the

best performing stock of the new york stock exchange a couple years ago. it's not masking, but if you have an overweight position in a stock like apple, it certainly hides a lot of other mistakes. >> yeah, then we've had some people talk about there's an article on our website asking whether it could possibly be the first trillion dollar company. >> and some 137-fs are coming out this week that highlight some firms that sold apple in the first few months. i wok you if you think they'll made a mistake. >> in terms of a trillion dollar market cap, if you recall the analysis we did on the facebook s-1, it's not out of the question if you look at constituent cal saudi arabia triage and you think about where facebook is going to try to come public at that valuation. apples to apples -- that's a bad one to say -- apples to apples, that shouldn't be the question. >> talk to you in a few minutes. >> you got it.

rising tenses in the middle east, refinery outages all contributing. how high can gas prices go? joe petrowski joins us in a first on cnbc interview. always good to see you, joe. good morning. >> good morning, carl. >> people have been talking about an epic summer for gas prices. are with el in for a rough time? >> you havely i think we are, with the refinery closings on the east coast. some financial problems and refineries in europe, and really nothing we're doing about dampening demand or switching to natural gas in the u.s. now we hear -- and natural gas wells are being shut in. i think we're going to approach $4 this summer. >> $4 this summer, placing crews -- what baseline on crude? >> well, especially on the east coast brent at 118 to $120 is priced in the east coast.

i think brent could go into the 130 to 35 range maybe. >> the saudi pring talked to our network last week and said the saudis at least are trying to keep thing below or after $100 a barrel. >> i would like us to be more proactive. we have $60 differential of crude from north dakota down to the gulf coast. we have 50 cent differential from the private of gasoline and the rockies and colorado. we're not doing anything to help ourselves. unfortunately we're starting to see at some of our stores the higher prices impact retail sales in the stores, which is a sign of distress. >> that traffic does have an

impact. in the "barron's" over the weekend let's talk about this potential israeli/iranian conflict. in which case an analyst thinks crude could go to $300. we're talking about outliaers, would that go to you? >> i think we would certainly go to rationing. i don't know how high we would go our how long we would stay there. but the only break is every 50 cents up on petroleum takes about $150 billion or almost 1% out of gdp. as you approach $4 to $4.50, you've sue a consumer that cuts back. and there's signs of rationing in this market at today's prices. at $4 or $5 i think you would

hit a demand wall that would sustain those prices unless it was very horrible in the middle east. >> you mentioned the demand here in the states. where would we be if demand was normalized, if we weren't coming out of a recession? i just wonder whether you think the opinion limb will swing one ways or another dramatically with regard to demand in this country? >> i think one of the things we've benefited from, people seems to be becoming more responsible about carpooling and being efficient, but i think if we really had a stronger economy, we would be close to 3.80 to 3. 90 today. >> it sounds like we're headed that way for the summer. joe, always good to talk with you. >> thank you. rick santelli's exchange for this monday morning. good morning. >> good morning, carl. today is a big day on so many

levels. let's start out with china one of the big stories being passed on the floor today is the head of the 410 million close to half a trillion chinese sovereign wealth fund basically saying, you know, not so sure we'll be buying any more of those securities, neighbor we'll be leaning more toward hard assets. that probably puts a shudder in europe. when your neighbor has a garage sale because he's unemployed. it's one thing to say before the sale i'm going to help you out, but to try to pick through the bones after things are a bit depressed, that's kind of what china seems to be telling europe, at least on the phone call that supposedly happened with angela merkel. with the stories about greece and the movement or lack of movement, what is the next best place to look? many of the guys on the floor love supplies, so they're

talking about tuesday and thursday. they're going to be coming to the marketplace with securities, that should be an interesting litmus test. last but not least, we talk about 410 billion sovereign in china, and a try yore is 12 zeros. today it looks like another budget from the president, probably another budget that's not going to get through congress, and once again another year where the red ink will be over a trillion. a trillion, and yet on "meet the press" we saw mr. lewin, the new white house chief of staff had this quote, that i think there's pretty broad agreement to the that i am for a austerity is not today. my question is twofold, first of all, have you ever heard anything coming from d.c. that says today is the day we're going to tackle spending? the other point isn't there something between trillion

deficit and total austerity, isn't there a middle ground? >> there's a lot of comments saying now is the time for austerity. the problem is it's not happening in this country. talk to you in a bit. thanks, rick. rick santelli, as he mentioned the budget, we are waiting for the president to give remarks on his budget. he'll be speaking at the north virginia community college in annandale, virginia, talking about, as rick said, the fourth year of a trillion-plus deficits, as jack lou said yes -- i think we'll go to john harwood in a bit, but in the meantime, here is the president of the united states. >> thank you. thank you very much. thank you, virginia. thank you so much. thank you, thank you very much.

everybody who has a chair, please have a seat. i know not everybody has a chair. >> love you! >> i love you back. great to be here. first of all, i want to thank mike for the wonderful introduction. please give mike a big round of applause. it is great to be back here at nova. i've been here so many times, i'm about three credits short of graduation. but, you know, there are a couple reasons that i keep on coming back. first of all, i think that dr. templen and the whole administration here is doing a great job, so i want to give them a big round of applause.

the other reason is because joe biden keeps talking up how great you are, and -- >> we will obviously be listening to the president for any remarks apropos to the budget, but first john harwood. 1.5 trillion in corporation -- no real tax reform to speak of. and breaking a promise to have a deficit in the first term. not going to happen. >> reporter: that's right. they do project a $900 billion deficit for the year 2013. the reality is those projections were made before the economy started picking up steam, so some of the final numbers may be better, but this budget reflects the fact, carl, that these two parties have hit a wall with each other. they were not able to make a compromise on a grand budget bargain that john boehner and the president wanted to reach last year. they couldn't get the support on

both sides. they couldn't make it happen, so this could be seen as the president's argument to the american people. here are my priorities. there would be a significant amount of agreement, because the two sides have set overjaw caps on domestic spending, so what they're talking about is what comes in under those caps, restrain of both domestic and security-related programs. but this is an argument that the american people, republicans will make their argument. paul ryan, chairman of the house budget committee was on talk shows over the weekend saying he will propose entitlement reform of the kind that the president hasn't taken up and the american people will decide this in the election, parameters in a la im-duck session the two sides will be able to come together and make some sort of bargain. >> when the argument is you still need short-term accommodations as opposed to cuts, when does that argument

change? does it change the day after the election or does it change at all for the democrats? >> reporter: it's a good question. we've been asking that since the beginning of the obama administration. i remember an interview with the president, when he talked about the need for a stimulus package of somewhere between 600 billion and a trillion, and said when do you know when you're going to switch from the deficit spigot, which is what you think is necessary to get the economy going a bit and the long-term austerity, but it's a little indefinable. we do have this payroll tax extension that the president is pushing, congress is likely to approve that, because tax cuts are hard to say no to, but there will come a point where the short-term turns into the medium term and long-term. the closer the baby boomers getting to retirement, the closer that day is. >> in jack's comments on questions meet the press" talked

about the difficulty of getting a budget passed, saying it's awfully difficult when you need 60 votes, and of course you need 50-plus votes. is there any fallout? >> reporter: he's taken from heat over that misstatement. as you nosed, a blueprint passes with a majority vote in the senate. the largest point remains, true, you do need 60 votes to make a grand bargain on entitlements, on taxes, really to move forward at a time when the republicans control the house of representatives. and the democrats not only control the senate, but that's where you need 60 votes to approve anything -- >> and finally as we watch the president speak today, the budget gets rolled on you officially in a few minutes. where does this lead us? do you have any expectation that

this is passed in any form? >> reporter: well, as i said, the discretionary part of the budget we know what the top lines will be, because the without and congress agreed on that in that resolution of the debt limit crisis last year. the sticking point ultimately is that long term? do you have tax increases on the upper income in maybe on middle class as well? do you have significant can you see in medicare and sort securities. the composition, that's what the two parties have ahead of them to fight about. i think it's possible you could get some of that result in a lame-duck session, why? because you have the looming expiration of the bush tax cuts. president obama wouldn't have to lift a finger to get rid of those tax cuts if reelected. you also have the $1.2 trillion in automatic cuts, which are looming. and that's not something either

party wants to see. >> and there's a look at the official roll-out. key reading material in washington, d.c. we're monitoring the president. you can obviously stream his speech on cnbc.com. in the meantime greek parliament approving the austerity measures this weekend greece still dealing with the aftermath. a lot of sweeping rocks and -- julia chatterly is live with that. good morning.ey is live with that. good morning. obviously deep in study. we'll come back to julia in a bit. a bold call on a down-and-outstock. back in two minutes.

he's actually speaking at a community college to tout the community college to career fund, which is part of the budget and would train some 2 million workers, trying to review them with skills and try to get back into the labor market. true religion apparel getting as union grate, from a buy to a hold. this after disappointing fourth quarter results. getting hid with four different

downgrades. true religion with a small gain earlier this morning. rick san tellist is over at the cme, watching numbers after an eventful weekend. good morning once again. >> and ira harris is my guest today. so many stories, but i continue to think as many as my peers on the floor story about the chinese sovereign wealth fund and what they may or may not be doing down the road. thoughts? >> if we go back when this all started to break open, it was the chinese that originally said they would buy $25 billion worth of greek debt. this el reneged on that promise, and we got the cascading effect. what the chinese have been able to do, almost like a sam zell thing, and i say that with agrees respect, we played the game.

every time they back off, the europo has actually dropped. if they come in in and out, they'll come in at much better levels than originally when they started discussion in 2009. >> even china has their own issues s buildings that are empty, bridges to nowhere, but my perception is their fuse is much longer, and they have a lot more resources to facilitate this kind of faux extra growth if they need to. it's all about keeping their social unrest at bay through jobs. will that prove in the end to alienate some of their biggest customers in terms of who they export to? >> i don't know if it alien yates their customers, but what makes china so different to analyze is that it's still a command economy where decisions are made at the top, because they're forcing through what some have called regulatory forbearance to force the banks to reschedule a lot of loans that were made during 2008, 2009

when they were simulating their economy. we don't have that influence in the united states. there are those in the united states who may wish to that type of control, but we don't have it. they do and they're able to really crazy as carmen reinhardt would say, that's real financial repression. one more step here. if they're not as aggressive as --. ultimately if the money for some of these big liquidity programs, what, coming up the 9th of february, and what does that do for average investors? should they keep bess enarmorred with the rallies? >> february 29th, ltro will be critical. it was originally projected to be about 500 billion -- >> whisper of a trillion.

>> now a whisper of a trillion. right now i think the gold equity markets are anticipating, as we get closer it may force people -- if the number is that big, because draghi is almost reading the play from rahm emanuel, it you never let a crisis -- >> never let a crisis go on -- >> it's a classic cases, so as long as greece stays in the news, the ability of that ltro to be that much bigger will be realized. >> between now and the end of february there will be more of these conversations. back to you. >> rick santelli and i ra, tell him hi for us. we'll bring in the close of european markets. after this break. ♪

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as you can see the close of europe in about 1:40 away, simon hobbs tracked the developments, but also the impact today of the markets. we have to get through some meetings this week. >> we totally have. if you look at the comments from the'sriance, vice chance lore, deputy prime minister, they are talking about the good we now have the legislation through, but what comes afterwards, they're saying? implementing it is another thing

completely. there is some relief, if you look at the european markets, but we're booking profits on that relief. you see how we have actually fallen down during the section, today it was announced the french and belgians are removing the short-telling ban, guess what? some of the financials are coming down into the close, some of the big french banks into negative territory, seven were subject -- the greek banks have done very well today. they leapt at the nominal to what happened over the weekend, anded yields continue to fall around europe, but the bigger point to remember here is perhaps beyond the means that we are ten days away from the european central bank how much money would you like. half a trillion? that's real big. >> as they say, print, inflate,

print and inflate. then there's some whole escrow account controversy, asking how much control -- as the european closing bell sounds. >> i just point out that spain -- i'm not sure if we're able to show the yields of the italians versus the spanish, but you've had an unity performance, partly because they're doing something big with their banks system that you willy cause them more trouble short term. so actually jpmorgan was suggesting you should overjae spanish, and you see the way the yields are not coming down, though that's actually not perhaps the best chart to have, because it's kind of -- let's just move on from that. back to you, carl. >> i like that, simon. just move on.

>> looking as a low volume day. especially compared to a year ago. >> this has been a trend this year. we've seen these kind of steady gains without any information volume, and today is no exception. it's about a billion shares, which at this time is not that great, but overall, a pretty broad-based rally, actually and so that's a positive. in speaking to some traders, there's still some concerning, that the market is still overbought, a number of them are waiting for a pullback, but it's hard that there's a constant drift upward. that being said, they said what's interesting to note is the retail investor is still not participating in this, even though we saw some decent numbers from e trade today, that volume nubs increased about 20%,

but still 20% below last year. so ging -- >> we were talking with brian belski earlier, and this notion of clients, who say, you're losing money with so much cash and savings, and their response is i know, we don't care. >> we want to pay down our debt, we don't feel confident enough that we have enough extra money to -- there's still a lot of uncertainly. the markets have moved pretty much in tandem with the euro, it's come off its best levels, coming off the u.s. dollar. as well today, and then of course bank stocks are the biggest beneficiaries. gave a bit of a boost, which has been a stronger performer so far this year.

interesting to know that the retail -- and so this ahead, of course, retail sales numbers coming out for january later this week. among the companies that have helped to drive the retail index higher, the limited, dollar tree, and also home depot has been among the biggest gainers there. we just want to touch on the rail roads or some of them. the company is shipping less coal, there's less demand for coal, so that's >> i thought it was interesting on friday when the dow was down, what, 89 points, the biggest decline so far this year.

>> hard to have more than a decline of 0.6%. >> and the vix measures volatility, and that has come down significantly as well, lowering today, too. >> thanks, mary. >> sure thing. >> let's hop over to gary kaminsky, i don't know what's on your mind, though mary points out some of these analysts downgrading sectors, though they are in the red, not by a lot. >> you know what i think. i was standing over here bother jon najarian. this is when you know you're a successful trader. like at the size of his watch. >> that's why hi left bicep is so much bigger. >> you toucheden upon -- we were talking about some of the things related to -- buying european sovereign debt or equities, but a great piece in the fp today talking about how china has instructed the chinese banks to

roll over this suspect debt. it's ironic in a sense, because i think today is exactly the two-year anniversary of when the european sovereign debt issues became first and foremost to the attention of -- it's amazing when you have a communist countries that can essentially say you don't want to roll it over, but you don't have much of a choice, and many issues pointed out in this article, are the fact a a lot of these loans are really bad loans, and whether or not they'll have to be absorbed or some sort of rescue over there, maybe that's the thing to be worried about. >> you talk a lot about the marginal buyer in equities, talk about looking for a margin buyer in sovereign debt. the chinese fit the bill if they could get comfortable enough to take that move. >> how can the chinese banks be

buyers of sovereign european credit when they have so many bad loans on their own books of the own loans they made within their own country. >> we've been talking about this cover over the weekend. jeremy siegel on "fast money" tonight, by the way, a chance of hitting -- a 50% chance of hitting 17,000. is that healthy for the market or not? >> you know there's always these theories, but the thin with jeremy siegel, he's basically said the same thing year after year after year, so it's not anything incrementable new we've pointed out many times where -- so there's nothing new there, but what's going to happen in terms of the marginal buyer is that i do think people are more inclined to put money into

equities been believes in this theory there's nowhere else to put money, for the short term. >> let's get to rick santelli over in chicago once against. rick? >> i enjoy listening to your conversation with gary there, because i think he hits all the points that make this important. there's always going to be the desire to grab some third party and look at them as the enabler, but maybe to look as it, as gary was thinking, we're now in such a global pie that issues regarding china two years down the road, all of these things can come back to haunt us. it's as if we have this developed country, like the countries, like our heart, pumping through a bunch of clogged artery, and we keep trying to pump more, harder, even though we're not putting in stents, not getting the blockage out. i think equities are the way to

go, and i still can't stop thinking, as wer7 ache talking about facebook about a week ago, what they can do with so few employees and contribute to the gdp, the gm kind of hundreds of thousands of employees times are becoming diminished, so we have to think about where these jobs are going to be coming from. if technology is the driver, it still will not reflect a better world economic scenario. >> that is for sure. it doesn't necessarily translate into human layible. let's bring in dan greenhouse. dan, good to see you again. >> how are you doing? >> reflections on what happened in europe over the weekend. >> it's more of the same. hopefully by wednesday we have something redemocrat bling a resolution. we're sort of crawling toward a second bailout here, but i think there's a level of optimism that's somewhat related to this.

and i think that's a really important switch that's starting to and has been getting some attention. >> you were suspicious of some of the renewed optimism late last year, early this year. where are you now? >> from an economic standpoint it's hard to argue gets the idea that the recovery in the united states is gaining steam here. i think for those of us that have been advancing the financial crisis recovery argument, you know, there have been several component that are crucial. >> a thought of those beliefs are starting to tern, specifically credit. if you've been bearish to neutral, you have to recognize that some of those, at least in the short term are showing some signs of life. so enough to make you change your tune? change your target? >> well, as a minimum, downside

risks are certainly abating. i think the oldest saying seems like it's don't fight the fed. you have the ecb getting involved, the boj, the bank of edge lind, even though the economy there is showing some signs of life has been advancing qe. if you believe as rick sort of articulated that global liquidity has to flow somewhere, the clients that btig is talking to increasingly believe that the upside risk to equities are greater than the downside risk. >> but that doesn't mean retail gets into the game? >> i've said this several times, i don't think ha retail matters anymore. individuals an retail investors didn't really come back to the market after the 2000 crash, so i think certainly, and i've said this for sometime now, if you are a, 60 years old, if you suffered through two bear markets, a number of fraudulent

cases, and any number of concerns that have risen and fallen since, and the idea that somehow the retailer investor believes in the concept of a stock market right now, generally speaking i think is challenged. >> you mentioned some of rick's arguments, one of them now was you could have price precious -- you could have price appreciate with a cap on job growth in this country. does a rising market necessarily mean a rising -- >> for some americans it does. i disagree entirely with rick santelli about facebook contributing to gdp, i'm not sure about that, but technology has been one of our favorite sectors for some time. i'm fond of saying in the '40s, '50s, '60s you would have 100 people come into your car plant to put doors on and carpet in. now you need one guy to come in and press the "on" button and

achieve the same level of output. the companies that make those goods, that make lives easier for everybody are likely to benefit. very quickly from a economic standpoint, yeah, we've seen quite clearly that higher educated citizens of the united states senior doing much better, and that's because of the shift in the global marketplace, and i think this larger debate about budgets and how to heal the economy really it loses what is essentially the most important point here. in 2008 john mccain went to mish dpan gan and said these jobs are not coming back, and something along those lines is what america has to be used to. >> dan greenhaus, thank you. tim ryan is here, he'll speak out the organization latest news on the voelker rule. and squawkie is standing by. there he is with gary. almost made two stock picks in

honor of the westminster dog show tonight on cnbc. we'll see whether he prefers jpmorgan or hewlett-packard in a future moments.

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next up on "halftime report," black swan alert. what caused china's property values to plummet, and he played -- sold it for 21 billion. floyd wilson exclusively on his next big energy play, next up on "halftime report." now back to carl on squoimt squoimt. today is the deadline for the comment period, one of the most controversial parts of the overall legislation. the securities soeshs now as sifma. filed five letters to the fed this morning, urging changes to the voelker rule. tim ryan has a first on cnbc interview. always good to see you, tim. >> good morning. >> what are the five changes. >> the principal change, as you know, the voelker rule has many

pieces to it. the piece that troubles the instrument the most is where do you draw the dividing line between market-making and prohibitive proprietary trading i suspect there would be thousands of comments from issuers, dealers challenging the way in which this is structured. the rule as a whole? >> the voelker rule needs tore changed and re-proposed. what they have done is they have said it is presume to be prohibited. as opposed to presumed to be okay. and we think that just flips the entire statute the wrong way.

>> is there any way to split this baby? can you actually have a segment of trading that is market-making? >> sure. >> it can be done? >> it can be dong. our view is they have taken the prohibited piece and made it too big and applied f that's why they ask 13400 questions. that's why the regulators said please give us some help. what we have try to do do in our comments, is to give them suggestions, so they can actually implement the statute, because the statute is not being changed. the voelker rule needs tore implemented, to we're trying to work with them to get the job done. >> even voelker has written a her where he himself says, i know it's implied. >> the best example of the complications here, which i'm sure chairman voelker didn't see coming, they exempted u.s.

treasuries. now you have all these countries all over the world saying we too should be exempted. now, the statute stls says you could use ratings to make these decisions, so how do you decide which country is in, which country is out, who's exempted, who is not? so there's a vast amount of complexity in dodd/frank, voelker and this piece is probably the most complex. >> in the near term, how does the try do about is with the rule as being implemented versus how you hope it will be implemented in the end? >> we're already hear from investors this is having a significant impact on liquidity and pricing. if implemented as proposed, it will have a dramatic impact, our estimates are up to $300 billion negative effect on outstanding securities. no one really wants that outcome, so i'm sure the regulators will look at this and try to come up with something that makes sense.

>> confusing and complicated, but important. >> and it's a hard job for them, so we're trying to help. >> tim, thank you very much. >> thank you. when we come back, our trusty stock-picking ghoul roar is getting ready to make its final selection. squawkie is going to pick between jpmorgan and hp in two minutes. [ tom ] we invented the turbine business right here in schenectady. without the stuff that we make here, you wouldn't be able to walk in your house and flip on your lights. [ brad ] at ge we build turbines that power the world. they go into power plants which take some form of energy, harness it, and turn it into more efficient electricity. [ ron ] when i was a kid i wanted to work with my hands, that was my thing. i really enjoy building turbines. it's nice to know that what you're building is gonna do something for the world. when people think of ge,

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squawkie has been trying to

figure that out. give a dog a bone, and some chow. he'll come up with the answer. now it's squawkie time. yes, squawkie, the official mass dot and his trusty handler montalvo has been picking the best dogs of the -- are you ready for this, gary? >> i am. carl, isn't there some saying not to share the screen with the dog? but i'm here in my role to tell you there's no favoritism. and he's a beautifully trained cocker spaniel. >> go! >> that was fast -- >> we've had some traders down here say the first two moves were indecisive. >> that was fast. ♪ who let the dogs out

♪ who let the dogs out >> jamie dimon will like that, right? >> i think he's making the call right now. >> would you back up that opinion? >> yes. >> i think almost -- montalvo how do you get him to behave so well? >> four years of training, and a lot of treats. >> i know how that game goes. he's beautiful. do we have to give his real name? >> sure. his name is compass. >> which i think is even more poetic, since he knows the direction in this case potentially of a stock. montalvo, thank you for bringing him? >> thank you. when we come back, don't forget to tweet us, by the way, in honor of our new friend, what ceo do you think needs to be on a short leash?

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squawk on the tweet today, with the dog show on cnbc tonight, 9:00 p.m. eastern, we're asking what ceo you think needs to be on a tight leash. >> keyes writes reed hastings should be leashed and muzled. mike jeffsries, of amber chrome by and fish. and kelly tweets tim cook and the late steve jobs for hoarding so much cash, not paying a different or buying back shares. not too much complaints about what apple has done, crossing the 500 america today, as we go into the monday afternoon session, rick, what are you watching? >> i'm going to continue to watch how the equities behave. i notice many are disappointing we're not seeing a bigger move. more than you or i or some of our guests have had today, but in the end, i think the globe is

country of engulfed, will continue to be a being -- and i think treasuries, i think they'll be about where they're at until we see more towards the end of february. >> do you think the pictures today, can the collision between popular will and the parliament's decision, can those two things coexist? >> yeah, you know, listen, i think demonstrations along this line are a bit frightening, i understand that, but i think to see these images in a country like the u.s. that means, well, we can't tighten our belt, that i don't tie into. gary? >> for year after year -- you saw that the investment banks division, global cohead of industrial is retiring. george has happens to be a