thanks to jonathan bush. have a great weekend, everybody. we'll see you on monday. right now it's time for "squawk on the street". >> good friday morning. welcome to "squawk on the

street." i'm scott wapner with jim cramer live from the new york stock exchange. carl quintanilla and david faber are off today. gdp at 4.1%. let's take a look at the futures. there's the 10-year. everybody is watching the 10-year yield, 2.94%. it's a mixture there. seu cutting the triple a rating by one notch on budget concerns. our road map starts with what else, the u.s. economy. the gdp coming in at 4me men4.1 fastest growth in two years. and looking a blackberry, announcing a 4 million lost in the third quarter.

revenue for nike beating the street after the company reported revenue of over 6 billion in the third quarter. revenues at nike are up and hit an all-time high just also a week. do you remember where you were a year ago today? i do and so did bill ackman. on this day a year ago he laid out why he said herbalife is a pyramid scheme and the stock will go to zero. it's far from zero. gdp revised upward from 4.1%. jim, this number caught a lot of people by surprise. maybe not the fed, though. >> no, it looks like the fed kind of figured it out. they had a meeting where they obviously start the taper. they would look very foolish if you saw this number. you would think don't those guys

even have a clue? don't they have a play book? they obviously do. i think they're feeling vindicated. they've done a lot of things right. i don't mean that politically. this is the kind of number you want. consumption was very strong. retail was strong. people keep confusing how much money walmart makes with how much they sell. they're selling a lot. people are buying. it's just that walmart ain't making it. >> they're buying clothes, they're buying cars, they're buying stuff to fix up their homes. right? >> this is a whirlpool market. one of the things i love about the u.s. economy is that as soon as you have some money, you do buy a home. now the numbers for homes had a glitch, everyone was talking about this this morning. but that's what bernanke wanted again. he didn't want housing prices to keep going higher. i'm going to say something that's shocking, probably wrong, i'll really regret it. i think he's doing a good job. >> well, he certainly -- >> am i okay with that? >> you are. i think a lot of people would say that this number only

underscores the fact that the fed probably got it right. >> right. >> as liesman thought that they would, they did and this number would sort of justify what they did and maybe they can do more. >> they're data dependent. >> they were never ideological. they are always practical. what you wanted to see was the consumer buildups in capital, not come back spending on debt but come back spending on cash. you wanted to see this kind of nascent demand build, whether it be autos, housing or also i think now you're starting to see commercial real estate, you're seeing that tick up. that is the biggest driver of employment. i don't know. we're certainly ahead of the way the europeans did it. we're way ahead of the way the chinese did it. brazil can't do it, india can't do it. you know what, brick countries, no, we're building bricks in this country. i had nothing to do with the rest of the bricks. >> obviously we had the big gain on the back of the fed taper, but what does this do now to the way we should think about sort

of where we've come in this market and where we might be going? >> i'm focused on caterpillacat. why? because they're the worst. it's worst in the dow, it's a mutt, it's in the shelter, it's got the fleas on it, has the ticks, needs everything and stock's going higher. hope springs eternal at this point in the air. you want to bet somehow, somewhere a change of management. maybe this is the beginning of some sort of turn somewhere. people like that more than they want pfizer. >> it's going to force a lot of people to sort of rethink where they think the market's going next year. you had some people saying, no, we may go into recession next year. the market's too stretched. we've gone too far too fast. now with a 4.1 print and if can you at least stabilize that or steady going ahead rather than drop down, that's going to force a lot of people to rethink where this market is and where it can go. >> what you were hoping if you

were a bear is that you'll come in at the beginning of january and you'll hear republicans hating democrats and you'll be talking about 1860 and partisanship, that being the last time things were partisan. but you don't have that you don't have that kind of wrangling that can really hurt people. this is like a confidence builder. this is whether you say i have enough money saved up, i'm going to start a business. i have enough money saved up, i'm going to stop living with my inlaws, which can be dreadful. all right, i take that back. but i do think that this is that moment in the economy where the fed said, you know what, let it go up. i mean, look, you really want to complain about 3% on the 10-year? no! the 10-year should be going up in yield, down in price because the economy's better. that's what happens in a good economy. all right? that's what happens. good is good, all right? this is what i'm saying. good is good! >> let's call your attention to

what you're seeing on the bottom of the screen there and that is oracle is buying responses to $27 a share in cash. that is the leading provider of enterprise cloud scale base -- >> i didn't see it coming. i thought that oracle was getting everywhere -- >> you had every reason to think it wasn't come being based on what they've done quarter after quarter. >> i was wrong. this was a good quarter and the expectations were low enough that it mattered. we'll contrast that with nike later on where the expectations were high. timco turned out to be an expectations game. what word did you use? cloud enterprise? you left out connectivity and mobile. that's all the buzz words people want to hear. it's all what goes out. when you're in "the valley," like the valley of the shadow of life, what happens is you want cloud but you want the company to keep moving toward the cloud. ibm gift because the cloud has

got low margins. red hat up huge today. athena health we heard jonathan bush, i was critical of his guidance but they're a cloud play. don't forget twitter is cloud, cloud, cloud. from a lot of a gazillion dollars to 2 gazillion dollars, that should go to 70. they're spending for investment. >> what's going on in your buddy betioff's head. >> i think he lives on ellison island. that's a whole lot worse than playing against revis island. when you look at what is going on in the cloud, everything is being traced to facebook. i've got you here. let me ask you something, did facebook announce a $4 billion

buyback? did they announce they were going to buy $4 billion worth of share? >> no. >> what did they do? >> offering. >> anybody that sells a billion dollars and says it's for taxes. for taxes? come on. a billion here, a billion there. you're rich! this guy is richer than the guy they're going to let out of prison in russia. >> not ten days ago we were talking about facebook and twitter being under 50 bucks, who was going to get 50 first. now they blew through that in a matter of days. >> i was with a very important person in advertising and she was saying this weekend -- this week, listen, twitter the money is coming. i said facebook the money's there. these companies are just sucking the life out of the rest of tech. it's like, you know, if you want to show that you have half a brain right now, you are buying twitter. and if you want the other half of the brain, you have to buy facebook. >> a lot of people are buying twitter. >> it's got the momentum. it's the hot team.

it's the seahawks coming in hot. >> 41% over one month. maybe the psychology about that one has changed a little bit. >> no one wants to sell the stock. they want to show they own it. this is one of the few cases -- you always hear the cynical stuff, retail bozo, retail bought the heck out of twitter. we know people recommending shorting the stock at 40. where are they right now besides having their sneakers and shoe laces away? they can do that because they wear loafers. >> i can't wait until 12 months from now when we see who had the better numbers, facebook or twitter. >> you need to see gigantic ad buys. facebook, i know people who are saying, look, this is our chance with video, it's going to be gigantic. i know advertisers who are

literally saying if i could get somebody on the phone at facebook, i would like to give them a check for a million dollars. but maybe i'm too small. i only have a million dollars. i can't get in the hedge fund. these are the dominos pizzas, these are the dine equity people. they want to be in facebook because they know that's where the demographic is. facebook is a juggernaut here. so is google. i talked about it enough. >> you know what is not? that's blackberry. blackberry reporting a wider than expected loss on disappointing revenue. blackberry announcing a five-year deal with contract manufacturer foxconn, developing phones for indonesia and other fast growing markets early next year. watch an exclusive interview with blackberry interim ceo john chen. >> it's 10 after 9. did they not name a new ceo? this guy is, what, from the

weekend? >> the stock has been down 7% on the earnings and then rallied to go positive and here it is 2.5%. >> over 40 million newly registered ios android users in the last 60 days. i think that's what's driving it. i think people are liking that. >> he did say the word "profit" this morning. >> it's prophet, i think. >> they could return to profit by fiscal year. revenues down 56%, they sold half as many phones as they did in the last quarter. i don't know what chen is going to tell jon fortt later on but -- >> do you think he knows? this is one of those situations where you take nokia. nokia saw this coming. they call up their buddy steve ballmer and say we're going to sell you that awful handset business. nokia is the anti-blackberry.

nokia is the one that figured it out. all you got to do is remember geography. nokia is a river in finland and they're always winners. >> does this story have any chance of getting past a sum of the parts discussion, an intellectual property discussion and fundamental discussion? >> well, people have to have that because they do have a key word people like. they have lists. you mentioned a country. it's the year of not living dangerously for blackberry. they like own indonesia. indonesia is a gigantic country and they have not walked away from blackberry yet. there are other countries in southeast area that loves

blackber blackberry. blackberry needs to present itself as an emerging market device. if i were chen, i would say we're a big emerging market play. would you buy that if i said that to you? >> i don't know about that. >> i thought that was a good pitch. i gave you what he would say. >> he probably will say that. jon fortt will have that interview, by the way. stick around for it. it's an exclusive with blackberry interim ceo john chen. and also ahead -- >> say hello to the new yodge wrangler and -- >> cut! it's pronounced dodge! >> i'm pretty sure it's a soft "d." the gift that keeps on giving for dodge.

durango sales continue to grow. >> take a look at the futures, by the way. let's see where we stand. pretty much holding steady after that much better than expected gdp print. there's the dow with an implied open of 28. again, the markets poised for their biggest weekly gain in three months. more "squawk on the street" live from post 9 at the new york stock exchange when we come back. you stand behind what you say. around here you don't make excuses. you make commitments. and when you can't live up to them, you own up, and make it right. some people think the kind of accountability that thrives on so many streets in this country has gone missing in the places where it's needed most. but i know you'll still find it when you know where to look. at bny mellon, our business is investments. managing them, moving them, making them work.

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well, it was a year ago

today that bill ackman laid out in a presentation why he believes herbalife is a pyramid scheme and the stock would go to zero. since then the stock has soared 136%. >> i told carl after the whole thing, he called me up and literally said, bill, we can be friends now. i wish i had a recording in the conversation. i simply said to him look, carl, you are no friend of mine and that was it. every time he goes on tv, i'm going to defend myself. >> i never said i want to be friends with you, bill. i wouldn't be friends with you. >> okay, carl. >> you said to me you'd like to be friends so we can invest together. >> you think i want to invest with you? >> i wouldn't invest with you if you were the last man on earth. >> that was right here, you know. i'm sitting in that chair over there. >> i love that interview. that was like the best thing our network has had in years. i'm not kidding. i've watched it multiple times.

it's what you live for. >> needless to say things have not gone bill ackman's way since december 20th when he did the presentation. >> the stock went down badly after. >> the stock got killed right after. >> if you're a hedge fund manager and you have to beat the quarter, you would probably come out and say horrible things about herbalife. in the end did icahn know that much about the company, or did he only know his opposition? >> i think he knew what he had to know about the company and he knew all he needed to know about his opposition in bill ackman. >> did he know about the mechanics about how when you short and you get the stock going with a lot of buyers can you crush the short -- he's wylie enough to know the mechanics of the whole business. >> i think bill ackman, if anything, underestimated the power of his presentation, those who were watching it and those

who had enough animus to go out and do something to try and hurt him. >> i had michael johnson on the show, used to come on the show regularly. i didn't like the fact that he paid a critic to go away basically. he said that on the show. but i always loved to fact that it's got great emerging market sales and that it's one of these companies that away from the united states people don't frown. belgium just ruled in favor of it. people don't frown on this idea of i'm recruiting you to go sell product. they're not insensitive overseas of what happens to the product. this is not tupperware, a really fine company. but when bill stiritz came in and bill stiritz is a -- he is the warren buffett of the food business, and he saw value here. what it said to me is icahn understood value in terms of understanding what a short seller can accomplish. stiritz came in and decided the stock is cheap, this stock is

not done going higher. >> as did soros. and once you had all of these heavyweights, it became almost insurmountable adds for a guy like ackman whose case was predicated on only one thing. and that was not whether earnings were going to fall, not whether they were going to sell fewer shakes or whatever they do, it was that the government was going to come in and shut the thing down. >> well, do you think he felt -- i mean, one of the things we've all gotten very cynical about government. we know if you're a certain industry, you go in and buy a lot of congressman -- i didn't mean to say buy a lot of congressmen but -- there's always someone who wants to have a big investigation. because of jobs? >> with wall street being viewed the way it is in some corners of washington, d.c., i'd make the

argument that a big, blustery hedge fund guy going public and urging the government to do something about it to make him money was going to be a negative. like why would the government given the climate that has existed over the last year at least between d.c. and wall street, why would they come to the aid of a hedge fund guy? >> you're right. and i think that one of the things -- when you pred kate -- the government's wylie. i figured he had an ftc guy, i figured there was somebody -- didn't you think there was some guy in government he had lined up? did he really go in there without a government guy lined up? he went in there neighborhood with nothing? just hoping the government was going to do something he thought was right? what country does he think he's in? >> what's so funny is -- real quick, we have to go. i'm getting an e-mail from a public relations person right

now -- >> from where? >> i'm not going to say. >> who is talking about a congress person urging an attorney general to do an investigation of herbalife. >> there have been incremental things but not the big thing. cramer's "mad dash" is next. for teaching me not to take life so seriously. thanks for loving me and being my best friend. don't forget to thank those who helped you take charge of your future and got you where you are today. the boss of your life. the chief life officer. ♪ [ male announcer ] this december, experience the gift of true artistry and some of the best offers of the year at the lexus december to remember sales event. this is the pursuit of perfection.

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eliquis may increase your bleeding risk if you take certain medicines. tell your doctor about all planned medical or dental procedures. i've got three important reasons to up my game with eliquis. [ male announcer ] ask your doctor today if eliquis is right for you. time now for cramer's "mad dash" before the opening bell. we're talking nike.

>> stephanie before the -- she crushes, has a great note today as part of our charitable trust, western europe -- look at this. western europe posted 15% growth, 23% futures growth, people, spending, they're using the western europe playbook for china, they're spending all over the globe. they're investing. you want to sell it off, go ahead, be a wise guy, make my day, sell off nike. >> some people talking abo abou expense headwinds for nike. i don't know. >> do you feel lucky? >> my charitable trust wants to buy the heck out of this. why? because china is in the future. future orders in europe were fabulous. >> up next -- kobe, though, ouch. >> no, that's bad. >> we're back after this. [ male announcer ] what if a small company

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in about 30 seconds. it's going to be an interesting day, jim. see how it all shakes out. >> people are getting a little greedy here. yesterday of the consolidation day. now people are looking for something to sink their teeth in. >> looking for santa claus to come down the chimney. >> love that guy! [ opening bell ringing ] >> on the big board, aerogroup. >> let me tell you what this market is about. you know the guy that runs 3m, who is a genius, by the way, mcnerney from boeing. today jpmorgan goes from sell to hold. they fought this, they fought this, they fought this and they lost! >> they capitulated. >> they capitulated. i'm seeing a lot of people

capitulate. >> they fought and lost. >> they fought the best american innovator and they lost. that's the kind of thing i'm seeing over and over again. it's like sell to hold. i mean, no, it should have been buy to superity duper buy! >> it's so tough to listen to the conference call and do the homework. it's easier to hear disappointing headline. >> it's so much easier to listen to you give the scoop. >> i have to read the conference call and that's no fun. i want to have fun like everybody else but there was no thursday night football so i had to do it. my life's miserable. >> blackberry is up 3.5%. they report this big loss, $4.5 billion, john chen will be exclusively on cnbc --

>> we have to hear him. maybe there's a story there. it's not as bad as people think? how about that. as soon as i say that people will say "you recommended --" no, no, it's not nokia. look at sprint. have you seen sprint where that stock is? that thing is a rocket because management working with the people from soft bank turned it around. that's an honest move in a stock. this one nokia is like, listen, it's not dead yet. >> i was talking about sprint yesterday with both lee cooperman and jamie dinen, who both own the stock, both like it and now amid these reports of the possible deal with t-mobile. >> obviously it would be a huge win. any consolidation is good in that industry. sprint needed a lot of money. hesse has been unbelievable. with two bucks he came on and said i think we'll make it. the stock at four bucks, he said we have to spend a fortune if

we're going to stay competitive. well, someone gave them a fortune and they're staying competitive. i don't know. he's notre dame's finest. >> as we look ahead to next week, it's going to be a shortened week with the christmas holiday, a shorter day on christmas eve. you just wonder if this gdp print today and this feel towards the end of the year where some people were inclined to pack it in and take some off the table, you have one last burst. >> i think people were supposed to sell. i'm looking at clorox. it's my bond market equivalent. say it's at 3. clor action is suppos clorox is supposed to be at 85. there are a lot of people who want to own these stocks. conagra yesterday broke out of the slump. i keep thinking what am i supposed to sell? what does the play book say i

should sell? you should sell clorox and kimberly maybe? it's a small world after all. there used to be four cell phones. there was a pay phone. we used to go see that at disney world every single year. bo jackson was there once. i used to call and say i want 100,000 alcoa, i want 100,000 phelps dodge. why? because hope springs eternal for heavens sakes. we're in a hope springs eternal. there's no more phelps dodge, it's freeport and people will come back. mark my words. i'm going to say something bold. the market can no longer wait for alcoa. this is klaus kleinfeld's year. the stock was at 18. it's klaus's year. >> and the cd, those cds that

were earning a lot from five years ago, as they roll over, what are people going to do? are they going to go on that five year and make something difficult to see or are they going to come in? everyone is going to say they came in at the top. i have heard that since 8,000 they came in at the top. well, that wasn't the case. people have to drop their cynicism and drop the polemics. it's a good market, bernanke is a smart man, they've done a lot right. before this country got so cynical and paralyzed by bipartisan, we didn't say it doesn't count because it's made up with dollars bought by the fed. it didn't matter. you can take those dollars and go buy ethan allen. i'm not going to stop you. >> if you buy tepper or dinen and others -- >> you mean people have been right and have made a lot of

money? >> yes. both of those people have been right and made a lot of money. either you get multiple expansion or you don't and if you do and you go from 16 to 18, 19, maybe even 20 and you put a hundred bucks of earnings on that. >> caterpillar is supposed to earn six bucks next year. say you give it a 15 multiple which is unusually high but then they earn seven and get rid of the ceo and get eight, and that's where the stock goes. people say why didn't i buy it here at eight? there was a guy on tv who said it was a short. i saw a guy on tv who said short it. no, it doesn't work like that. look at cummings. the last time they spoke the stock dropped to eight and ever since then it keeps percolating. look at these stocks. look at boeing. boeing didn't go up because of

the fed. it went up because it's one of the greatest manufacturers of equipment in the world. >> unh is leading the way. the dow is off 53 points. we're poised for the biggest weekly gain in three months. caterpillar, 3m on the upgrade, the banks -- >> frank blake comes on "mad money" and basically tells one of the greatest stories in the world, business is great and the stock goes down. that's 2000 to 2011. people have to recognize when frank blake comes on and he says business is good, you should buy his stock. you shouldn't say has he not looked at the 10-year? does he not understand qe? i mean, qe? he's looking at carnival cruise line thinking they still had the qe. they never had the qe. we're going back to when qe meant some ship that your folks took a cruise on because they had that 347 thing. now i'm looking at the stocks and thinking carnival cruise.

look at that one. look at that bow wow. hope springs eternal. tles the there's a lot of stocks people have given up on and they're coming whack to them. tease what they're doing. >> can you throw up twitter for a while? the stock is over 50. it's up 2 2/3% today. >> people love twitter. i -- i retweeted @jim cramer and @scott wapner. meantime nasdaq went from a thousand to 5,000. i would like to capture that move. twitter is about i like the product. everyone's got the remington thing. hey, i liked it so much, i bought the company. i liked facebook so much i bought the company. we can say that those people are

foolish but they're making money. what fools these smart people be. >> bob pisani is no fool. he's on the floor with a pretty good open. bob? >> i'll get to that in a minute. did you see that gdp revision, scott? 4.1%? 3.6% was the estimate -- this is the third revision. they don't usually have a miss this big. the numbers were very impressive. futures went up on this. good news, economy getting better was good news for the stock market. personal consumption went up nicely here. 1.4 to 2% for personal consumption. most of the comments based on that. that's very good news. futures went up, as i mentioned, on that. speaking of futures, heaviest volume day of the year. three events, quadruple witching expiration, s&p 500 rebalancing,

nasdaq rebalancing. you get the settlement value of the s&p at the open. we've had very nice volume, almost 400 million shares on the floor of the new york stock exchange already, normally you'll get 50, 60, 70 million. we got four, five times normal volume right at the open right now. if you look at the rebalances of the close, some big names are going to be some churning. apple has had a big buyback so they're going to decrease the weighting in apple, exxon has as well. they're going to decrease that as well. general motors is increasing its share count. so you'll see some action here. people ask me why isn't there more price action? why doesn't it get a little more gyrating in terms of the price? the index guys have become very good over the years at sort of faking out all the people who want to sell them or buy from them the stocks they need to add or subtract from the index. there's ways to synthetically do

that. carmarks -- carmax leading on the laggards here. art cashin said we're breaking out of that old triangle on the s&p 500. we're sitting right near that at 1815. big, big advantages on heavy volume, new highs, going into the close of the year technically looking terrific. >> let's go to rick santelli at the bond pits at the cme in chicago. >> hi, judge. any of you remember head east and flat as a pancake? flat as a pancake is pretty much what's going on in the yield curves. we've been talking about this for a long time.

and to see the amount of flattening that is happening on a pro active short end of the market is unreal. just consider this -- a 30-year yield right now is down on the day and down on the week as the two-year approaches 30 base points. let's look at 2s versus 10s. it's flat about two basis points. 5s versus 10s. open it up year to date, since the 20th of november, just about exactly a month ago, it's lost 20 basis points. let's look at the two-day of 5 versus 30s. had a huge move today. open that up to year to date, it's lost close to 30 basis points in a month. these are big numbers. now, what do they mean? it means anybody who is trading stocks today and look at 10s and 30s are contained, i'm going to buy stocks. that he fine and dandy thes, thn

do as they wish. whether it's taking on steepeners or putting on flatteners, it doesn't matter. as you start to see 2s, 3s, 5s flex their muscle, that is a perception there are forces at work that is going to push forward the notion that we have to see more tightening in the timeline in a market size that might not be 2016 with actual rates, no taper. currencies quickly. let's look at charts going back 62 months for the dollar yen, the euro yen, the pound yen. what's the common denominator? yen is under pressure. back to you. >> all right, rick. thanks so much. >> coming up, the wisdom of this man sitting next to me and there a lot of it now at your fingertips. we'll explain in a moment. and blackberry interim ceo john chen. how he plans to tackle the challenges facing the smartphone maker.

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welcome back to "squawk on the street." let's take a quick check on oil prices here. we westchester intermediate trading pretty much flat. you had traders coming back into the market and after closing at a more than three-year low yesterday, bullion hit a fresh low this morning, managing to claw its way back. this puts gold on track for its worst year in years. >> bad for gold. >> a certain someone sitting next to me himself a new book that's about to drop. there it is, "get rich carefully." preorders right now. it goes live december 31st. >> thank you. >> this is the seventh book.

>> i'm putting it in context. 21 ceos that have been on the show multiple times of "mad money" that are worst investing in, seven themes, ideas for breakup stocks and then huge mistakes i've made with my charitable trust. go over every one painstakingly just to show you do not make thinks mistakes. >> "get rich carefully," you've made a generation of investors smarter. >> this is one, five years in the making, 440 pages, poured my heart out, rewrote it many times. think i got it right. technical analysis, please. thank you, thank you. you're very kind. >> let's talk herbalife again, shall we? >> yes. >> we talked about this being the one-year anniversary of ackman revealing his short at the conference up in midtown. i think it was lincoln center. 81.66 is what the stock is currently trading.

it is up 2 2/3% today. jim, that day he unveiled the short, the stock got as low as $24.24. >> it did feel like he had some senator, eric holder or some prosecutor who was going to shut it down because he made it sound like this was basically a criminal enterprise, fraud, fraud, fraud, fraud, fraud. there was a moment when you did the interview and it was very clear from the interview you could pick mohamed ali or any one of a number of opponents. this was the thrilla in manila, we know who won. people have to understand when you short a stock, you better have all the stock in the world you can borrow, you better have all your ducks in a row. if you say a company is going to go to zero, you better know it's going to zero. people don't like people who do that sort of thing. there are real people who work

at herbalife. this is a real company with real earnings. you may not like the way they do it with their point system. you may not like the way some people buy it maybe in a garage. michael johnson cleaned this up. he did not have his ducks in the row when he said this. he did not have a senator, a prosecutor, an end of the government who was going to fulfill his role. >> it's been an all-or-nothing bet, right? >> yes. >> either it's going to be shut down or it's not. and now you've got these other big, big, big investors thinking about what happens next. do they about do a big buyback? is there an lbo, which would be incredibly difficult to do but the buyback's been hanging out there. i'm thinking that the first thing they're going to do is refinance their debt, interest rates are low, their hands have been tied by not having their financials back. >> that was not their fault. >> this past week because of the kpmg saga and switching to price

waterhouse coopers, they got their financials, which seemed to only embolden the carl eye c -- icahns of the world who felt vindicated, not that they needed it, but they felt legitimized because they came out clean. >> it's not the auditors job to decide whether this is a ponzi scheme or not. >> sackman did switch some puts. the people who are against ackman are trying to appeal to ackman's investors, pull out. that's what i think this is about. i think ackman's had a fabulous return over the years, but i think this is about breaking the investors, getting them out of ackman's fund at year end, just like he probably attracted a lot of investors when he was able to get herbalife to plummet last year. this is a battleground --

>> five years from now, maybe sooner, maybe later, he could be right. who knows what the future is going to hold in this trade. it might not matter because the game could be over depending on what happens with these other big names. >> you'll kick it around today at 12:00 at the half. i urge people to go look at what they do. they do a supplement business. go look at bill stiritz's background. stiritz is not out to break ackman. stiritz is out to make money for himself. go read about what he's done in his career at purina, go read about who bill stiritz is. that's who is the opponent of ackman, not icahn anymore. it's bill stiritz. i would never go against stiritz ever, ever, ever. >> and the folks inside herbalife think it's about doing everything right, it's about running the business without the side shows of emerging markets.

>> and one of the great investors of our time told me never bet against stiritz. stiritz believes everything you're saying, herbalife is trying to make money. >> cramer has your six stocks in 60 seconds when we come back to post 9. because only national lets you choose any car in the aisle... and go. you can even take a full-size or above, and still pay the mid-size price. (natalie) ooooh, i like your style. (vo) so do we, business pro. so do we. go national. go like a pro.

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it is time for "six in 60." >> citigroup downgraded. transocean be careful. >> finish line. >> nike did great. so what do you think? if you just listened to terry lundgr lundgren, he would have told you mikey would have a great quarter. >> timco. >> everyone felt they had a good quarter last time and they would deliver again. no, the quarter was not so good. >> allergan. >> there's a lot of talk about botox doing better.

this restasit, their tear drug. doing a great drug. >> amazon. >> there's price tags rising. everybody loves it, love, love, love. which is loved more, amazon or twitter or facebook? that's like who is more loved? >> that's a good one for next year. >> it's about love. do not confuse things. it's about love. >> what's on "mad" tonight? >> we have paychex on. this is the first time they've been outright bullish. keeping with the gdp -- what are you doing with herbalife at 12? i will stop and watch it. >> i guaranty we will do it at 12. >> and can you please beat the cowboys. if you beat the cowboys, i'm

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. and here we go, our road map start here, gdp growing 4.1%, our biggest gain in two years. >> and blackberry posting a $4.4 billion loss, revenue falling nearly half from the year earlier. >> and a major change coming from obamacare. the white house announcing it will make last-minute exceptions

for people whose health care plans were cancelled. we'll tell what you this means in a few minutes. >> and i'm an ad salesman? dodge seeing a major increase in sales after running a bunch of ads starring ron burgundy. >> and blackberry reported a 4.4 billion dollar loss in the third quarter with strong comments from the ceo this morning may have turned the stock around. jon fortt is live in waterloo, ontario with more. >> reporter: with a quarter that bad looking at the top line, you'd expect maybe more like the tumble that you saw premarket, maybe 5%. but i think john chen's candor, which some people aren't used to from blackberry ceos might have been part of what's happened here. yes, revenue is at 1.2 billion,

short of the 1.65 a lot of folks are looking for. what john chen has done is on the one hand this partnership with foxconn, which should eliminate some risk inventory-wise, which is why they're taking this big. he's saying long term i want foxconn to design and build the low and mid-tier choices. our designers in north america will main live foly focus on th high-end devices. much of the message is about getting out and bringing out management and continue to manage ios and android as well. they're making a platform play here on the back end at a time when lots of folks are concerned about security. it will be interesting to see how that message might resonate. one of the questions i'll have for him when we talk exclusively at the end of "squawk on the street" is about just exactly how much they need to retrench

whether this is enough, whether they might actually consider doing android instead of blackberry 10 at some point, but it sounds like he said on the call, hey, i'm only 45 days into this job, give me a couple quarters to give all the details of the strategy ironed out. right now he's talking to employees about the quarter just across the way and then he's going to come right over and talk to us, guys. >> we're looking for to it, jon. thanks very much. so can john chen turn a blackberry around? no one knows better than kevin michaluk, founder of crackberry. last time he got his hair cut. >> thanks for having me on. >> what do you make of the announcements today with regard

to foxconn? >> i'm loving john chen. this guy is the real deal. he's been there, he's done it before. he has a proven track record. he's already shown he's not scared to make big changes. blackberry's former chief officer, coo are gone now. today's announcements are big. the change to foxconn addresses the device handset business right away. i think he's made it clear he's looking at everything. >> kevin, announcing that foxconn is not only going to manufacture but potentially design handsets is not exactly the kind of announcement that would get the market or investors excited in the way it would if they said we're just going to partner with an android. >> blackberry has always had trouble making money on handsets, especially the higher end handsets. as we've seen with the inventory writedown, it's just a part of the business they've never been

particularly great at yet it's an integral part of the business. i think the thing is they're committed to the handsets. i think there's been the sense that blackberry might get out of hardware all together. when i had the opportunity to talk to john 24 hours after he became ceo, he made a smart statement. he said, "what's blackberry without a handset"? it gave me confidence that we will see blackberry hardware for years to come. that's a huge step there. whether they go with it, whether it continues to be a blackberry 10, android, that could change over time as the story continues to evolve but i'm really happy they're continuing to make hardware and they're committed to that. >> you're not trying to put a positive spin on what is unspinable at this point? jon fortt lays it out that chen comes out with all this candor and that's refreshing but it's the results that really matter and the results aren't good,

they haven't been good. there's no reason to believe they're going to be good. >> it depends. they segmented the business into four parts, you have your handset, your messaging business and q and x, the embedded technology in ought mote automo other industries and they can lay out an p and l and strategy that focusses on that individually. in the past everything got clumped together. i don't know if decisions were made that reflected profit in each area of the business. doing that is the first step to the turn around. it gets the operational ducks in a row but they have an uphill battle to climb or uphill challenge. >> kevin, thank you so much, kevin. we're looking at shares up

almost 3%. kevin michaluk, found aer and c of crackberry. >> i love that you see them up 3%. i see them down 85%. >> we're looking at intra day charts and perhaps the beginning of a long trend here or perhaps not. >> president obama live go a news conference before he heads to hawaii for the holidays. that will be about the changes to obamacare. >> we want to bring the focus back to the markets. stocks pushing higher, gdp data coming in at 4.1%, the fastest growth in two years. gentlemen, it's great to have you on "squawk on the street" this morning. >> good morning. barry, to you first, what is the print in gdp better than

expected make you feel about where this market can go? >> well, i thought what was most encouraging is the sign thans vestment -- signs that investment is picking up. companies were using free cash flow to buy back stock. through the course of this year we've seen a pickup in labor investment, capital investment, inventory investment. you may even see that move all the way towards the ultimate risk for a ceo m&a next year. and that investment trend we think is autable to europe coming out of reception and all that public policy that was so negative and created all this risk averse from 10 through 12 is all dissipating. it's at the core what we like right now, which is capital spending sensitive sectors like industrials and tech and we think that trend will be a strong one through the course of next year. good fundamental news.

>> why do you say then in our note this morning that it's time to cut some equity market risk? i know we've had a great move but it sounds like you're painting the opposite scenario. that's why i ask. >> well, remember -- go back to 2009. the stock market bottomed in march, earnings in september. the market started to reflect this all the way back at the end of april. we've pulled forward all that pick up of earnings growth. we're at 6.5% now, we think we go to 9. the market is trading at an above-average multiple. as we stop to get tightening of monetary policy conditions and say what you will to the immediate reaction to taper, the fact is you started to pull rate hikes to 2016 and 17 forward on the curve, that's why the 5-year has been under such pressure so that will likely create a bit of

a consolidation around this big multiple expansion we've had. the fundamentals story is good. this is not an end to the bull market we're arguing, just that we've already pulled a lot of this earnings growth forward, scott. >> neil, is that how you see it or something different? >> i think we're on the march to 20,000 dow. there's a lot of power on the sidelines. barry was talking about company's cash flow. the s&p 500 companies are sitting on $3 trillion in cash and short-term investment. they have plenty of cash to put to work should they want to do it. on the other side of it it's very simple. just add up the dollars. there's $3.4 trillion in u.s. mutual funds in the fixed income product arena. there's $2.7 trillion in money market funds. those two are earning absolutely nothing. if you take the other number, scott, the first nine months of

this year, $103 billion went into u.s. equity mutual funds but only 9 billion went in the u.s. equity markets. the rest went overseas. at some point people are going to realize that this market is in good shape, the companies are in good shape, they're doing everything to move the market higher. they're initiating dividends, raising dividends, stock buybacks, put money in internal infrastructure and making acquisitions. that bodes very well for the market going forward. >> guys, thanks so much for being with us today. happy holidays, we'll see you soon. >> thank you. >> retailers promise to save you money with online ordering programs. but which retailer is the fast of them all? we've put two to the test.

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welcome back to "squawk on the street." shares of responsys are surging this morning. they make cloud-based software businesses use to manage marketing campaigns across e-mail platforms. oracle is boosting its software

business to fend off competition. kelly, back to you. >> retailers promising to save you time and money over the holidays with online ordering programs. so we decided to test two, amazon and walmart. courtney used walmart and jane used amazon. >> the third item is a lego super hero set. >> i'm seeking speed and value. >> i'm going to have all these products delivered to me here at work. >> if i pause to do anything, i lose that ipad minuti w mini wh to check out. >> there was an error. i'll try this one more time. >> can i give you the order number? >> and now i'm going to place

the number. >> here we go. >> she's going to be wrapping her presents. >> let me get the massage chair going and check my order. >> here i am at the 711. two products were inside the locker and the dirt devil was waiting for me at home. >> my delivery at home. basically within 36 hours after i ordered everything, it's all here at the house and i've gift wrapped it, though i'm not a very good gift wrapper. maybe i should have ordered it gift wrapped. how did you do, courtney? >> 42 hours delivered and wrapped. we'll see if it's enough to beat jane. >> i guess congratulations to amazon here. >> the coolest thing about it was the amazon lockers. it was very convenient right down -- >> i didn't know they were in 7/11. >> it's the coolest thing. you go right in and they're

right there. as much as we've been doing online shopping, it's still got glitches. it still wasn't quite as perfect. >> how so? >> it took a little longer and cost a lot more to get it than i thought it would. i was hoping for same-day delivery. i paid top dollar and it still took 36 hours. >> i paid more, too, to get the express delivery. i think i paid an extra $22. the problem i had was with the online ordering. it was out of my normal range of spending that my credit card went through. >> it wasn't out of my range. >> they kept saying why are you making this big purchase? >> the moral of the story is clearly you need to sell more. >> nice to see you in a dress again as well. >> and i do think for me the new experience was the locker at 7-eleven. by the way, i did do some more

shopping for "fast money" and nobody would take these presents. >> i think, kelly, you'll like it. "i hate you." >> and for simon, leggings. >> we will both put these on. >> and for scott. >> i'm happy to get that. based on these gifts. >> i won this this morning. >> but i won grocery. >> and i won the shirt. >> and you hate us. >> yes, but not the 10-year. court, if we don't see you again, have a great break. >> thank you very. >> simon. >> no, scott. >> scott. >> thank you. take a look at shares of carnival rallying. does that mean up should be buying? more on that in just a moment. we're aig. and we're here. to help secure retirements and protect financial futures. to help communities

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ceo robert donald. with us is robin farley, the analyst that has raised carnival to a buy. robin, a lot of you guys in the investment community seem to be taken off guard really by what carnival did yesterday. why the upgrade? >> sure. we were going into results yesterday expecting carnival's guidance to actually be below consensus. the fact that it came in above consensus was a positive and it was driven by the close end bookings on the carnival brand so that's a visible sign of recovery there. >> this is a big company, over 100 ships, $35 billion market cap. do you think he will be able to hold pricing crucially through this big important season where everybody now books their cruises and if he does hold pricing, who benefits most, carnival? or does it knock through to norwegian or royle?

>> they did let occupancy drop on the carnival brand, probably down 300 basis points versus the prior year but that still enabled them to get better pricing. that's very good news for norwegian and for royale. it let's everybody else maximize their pricing as well. >> is this the beginning of something big, robin? there's clearly an inflexion point in a very troubled company. how high do you think it could go? different hours of magnitude or are we only talking 4% or 5%? >> our target for carnival is $41 right now. we're going into wave season with an outlook where we've had in the last two wave seasons disruptive travel events, the publicity on the triumph and the concordia before that. just having a normal looking

period and letting pricing recover is going to be positive. >> good to hear from you, robin. robin farley there from ubs. >> nike's second quarter profits beating street consensus by a penny. future orders up a better than expected 13%. sam poser is a senior analyst. paul is an analyst over at morningstar. guys, welcome. it's good to you have on the show. >> good morning. >> thanks for having me. >> paul, what's your read here? i'm wondering why the stock reacted the way it did. maybe the bar was just raised too high. >> the stock is trading at 25, 26 times earnings and management is also a little bit conservative on their guidance. they're saying they're going to spend more on demand, creation. yes, the gross margin was up but they said the full year is only going to be up 75 basis points. go ahead. >> no, i'm sorry. go ahead. >> the expectations are high.

you've got a big event year, olympics and world cup and traditi traditionally they sell in a lot and maybe a little hangover afterwards. the expectations are high. the company is in great shape. i don't know if you want to pay $26 for something growing 10% on the top line. >> sam, the earnings continue to be good. if they didn't blow it out last quarter, i don't know. maybe just expectations got a little bit out of control. this is still a good quarter, right? >> it was a very good quarter. i think what happened was you're starting to see things change. i have a buy rating on the stock. i think that what's going on here is you see the change in western europe, the back log there, the futures there up 23%. it looks like china is starting to make some serious progress and north america remains exceptionally strong. so we really think this is a huge opportunity, you know, for the stock and for the company but as was said, the gross

margin guidance is probably conservative and they are spending a lot on their future, which is necessary. so a little pullback right now doesn't really surprise me but we still like it in the long term. >> and on the subject of the future, sam, which is more important for the investors, the fact they'll launch now six different basketball shoes in the next ten days or the fact that they supplied the brazilian and the french uniforms -- the soccer uniforms and they have new soccer uniforms in advance of the world cup? which of those two is more important to the company? >> you know, it's such a big company, it's just showing how innovative they can be across numerous categories. so we think it's sorts of equal and they've got lots of other things in the hopper as well. >> simon, if i could pipe in there. one of the amazing things in the past ten years really is nike's growth in their soccer or global football business. that's really important to them. in the long run, though, i think the growth in basketball in europe is surprising people and in china, too.

basketball is actually the leading thing turning around in china. long run that can be really big. so i think in the long run maybe basketball still has a lot of growth to go. >> is there any hit at all from -- >> i agree with that. >> is there any hit at all from kobe getting hurt again? >> he was hurt last year. >> the guy sells a lot of nike product and then he gets hurt again and is out another six weeks. >> he was hurt last year. he's at the end of his career anyway. if jordan got hurt tomorrow, would that hurt the brand? i think you got to worry about the young guys getting hurt more than the old guys. >> gee, you're calling kobe an old guy. >> as long as it continues to improve as it has, as it transcends people's career when the product is really good. >> thanks a lot. >> okay. >> we'll talk to you soon. >> thank you.

>> sam and paul. >> simon? >> if you've been out lately, you've probably seen one of these commercials. >> say hello to the new yodge family, the durango -- >> cut! it's pronounced dodge. >> i don't want to tell you how to do your job but i'm pretty sure it's a soft "d." >> those commercials are funny but they've been especially serious for business ceo of dodge will be here to tell us how burgundy is helping the bottom line after a short break.

good morning if you've just joined us. the story that we're squawking at here on wall street. 7:31 on lts west coast. oracle is acquiring responsys. stocks are surging on the move. today wills last day for index managers to add facebook to their funds. and we're checking in our foursquare, just raised $35 million in series d funding led

by dfj growth. the company also revealed it has now, kelly, 45 million subscribers. >> let's do a quick market check here. the major indexes, the dow, the s&p 500 hitting new ultra day highs. for the s&p 500, it's about 1817. we're sitting just right about there at the moment. the dow jones industrial average hit 16,254 earlier, about 14 points below. >> if you've just tuned in, great gdp data, growing at an annualized rate above 4%. yesterday of you that underpinning on the economy from ben bernanke as well. this is a very strong week. >> a number of -- you said the gdp number, the best in, what, almost a couple of years. >> best in a couple of years. only the third time since 2006

we've had a quarter above 4%. >> you're very glass half empty. >> if you're wondering what's happening with the 10-year, it kind of nets out. it leaves expectations with regard to the first fed funds rate where they were before. >> you managed to get the 10-year in there. chances are you've seen one of these tv ads before. take a look. >> power, precision, elegance, grace in form, truth in function. sometimes the luxurious things in life are -- hey, what are you doing? get outta here! get outta here you dumb dancers! i've told them a hundred times they can't dance in here! >> chrysler took a risk when it tapped fictional news anchorman

ron burgundy but it appears to have paid off. the man who had the idea for the ad campaign, tim kuniskis, joins us now in a cnbc exclusive. welcome. it's great to have you here. >> thank you. good morning. >> tim, where did this idea come from? >> we've been kicking around using the idea of something with will farrell for quite a long time and the timing was perfect. the two things have to align to be successful. the timing of the launch of the "anchorman 2" movie and the launch of the durango was perfect timing. >> what do you think explains the engagement these ads have had with it sounds like a lot of

young buyers who are coming around to the dodge brand? >> if you think about it, the success has really been in the premovie buzz. we've had over a half a billion media impressions. that's essentially a massive teaser campaign for their movie. at the same time, that's huge awareness for dodge and for the new durango. i think what the real success has been is the entertainment of the spots. we're not trying to sell you a car in 30 seconds. we're trying to entertain you, have some fun and get you interested and put dodge and durango on your shopping list. >> you know, tim, when i first came to this country four years ago, it struck me that there was a big difference between american advertising and say european advertising, that brands here take themselves much more seriously, much more value associated in what they -- in the communication to the customer. i wonder if this actually mark as sea change that if you entertain people more, if you have a little bit more fun, you're less serious, actually you can shift a lot more product? >> well, it depends on what

you're trying to market. i think in my opinion ron burgundy specifically and dodge fit together extremely well, especially when you're launching a new car. you've got to really break through the clutter. if you think about an industry that's going to sell over 15 million units this year, that's 40,000 people that are going to walk in and buy a car today and they have to choose from 40 different brands. so how do you get 40,000 people per day that are going to buy a car to notice your vehicle, your brand out of those 40 that they have to choose from? you got to get their attention. we've been selling the durango since 1998, there's almost 2 million in operation. we needed something to really grab your attention and say you need to look at this. this is a new durango, this is significant and the best way to do that is to use someone who is an expert on, quite honestly, everything. >> tim, i mean, "anchor man 2" is going to come and go. how long does a halo effect, if you will, last on something like this? >> well, i think the halo effect is very beneficial for the brand

overall. i mean, it sends an impression about the brand and what we're trying to do and how we're trying to communicate to our audience and to our consumers. you have to remember dodge is in a showroom of five different brands. in an industry the size that we compete in, dodge is going to do very well. we'll sell over 600,000 units this year. that's a great job, makes us the seventh largest brand in the industry. but 600,000 units is only 4% of that industry. >> so plenty of room to grow i see. tim, i'm just curious, how much did you pay will farrell or spend on this campaign. >> actually, it was a very good partnership. it's more of a barter. if you think about what we were able to do for them, we had to advertise the launch of the new drank owe anyways. so we were going to be on tv. we were going to be on tv promoting their movie, getting the message out about their movie so health insurance what's in it for them and at the same time we're promoting our car. >> so did they wind up paying

you for the campaign? >> no, it was a partnership where we're promoting their movie and they're promoting our vehicle. >> what's the return on investment? >> it was huge. we had to launch the car and the durango anyways so we were going to spend money on media. there was additional money spent? no. but did they get prerelease teaser spots for their movie? yes. that's what in it for them. >> when a traditional character helps you by doing this commercial and he's a likable and loveable guy but also in the same breath goes on a late-night show and says the thing's a piece of junk, it a garbage car or wherever he appeared and said that, are there any issues of risk in that? >> not at all. ron burgundy is a fictitious character. when he does things in ca

character, the funny or die people and will farrell had a lot of fun and i think it worked out for everybody. >> tim kuniskis, thank you very much for joining us this morning. >> thank you. >> fascinating. >> let's send it over to dominic chu. >> check out amazon.com. the internet giant crosses $400 a share for the first time ever going all the way back to may of 1997. the stock is up about 60% this year alone. so the juggernaut this is the holiday season and consumer spending is still trucking along with amazon shares. >> a last-minute change for obamacare could have major ramifications for hundreds of thousands of americans. president obama will host a news conference today at 2:00 p.m. eastern time. and later blackberry shares up now more than 8% after reporting earnings. you don't want to miss this interview with the interim ceo john chen.

we'll sit down with him a little bit later. "squawk on the street" will be right back. ♪ [ male announcer ] the mercedes-benz winter event is back, with the perfect vehicle that's just right for you, no matter which list you're on. [ santa ] ho, ho, ho, ho! [ male announcer ] get the all-new 2014 cla250 starting at just $29,900. [ male announcer ] get the all-new 2014 cla250 but with less energy, moodiness, and a low sex drive,y first. i saw my doctor. a blood test showed it was low testosterone, not age. we talked about axiron. the only underarm low t treatment that can restore t levels to normal in about 2 weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women especially those who are or who may become pregnant and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. report these symptoms to your doctor.

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yet another change for obamacare, as the white house announces it will make an exception for those whose plans were cancelled as a result of the new health care law. bertha? >> reporter: the obama administration says those whose plans were cancelled will not face a penalty for not having insurance in 2014 and they'll have the option of buying the bare bones catastrophic plan. it's yet another change on cancelled plans after a reversal from the president last month allowing insurers to renew those plans, that he once called substandard. >> insurers can extend plans that would otherwise have been cancelled and americans whose plans have been cancelled can choose to reenroll in the same kind of plan. >> why this shift?

secretary sebelius said the administration was providing a hardship because there may be a small number of consumers finding difficulty to find insurance in the marketplace and also said individuals who qualify for this hardship exemption are also able to purchase catastrophic policies. the head of the insurance lobby said this is going to cause more confusion, it's going to be disruptive. the 11th hour shift is an indication the administration remains very sensitive to this issue, in particular as we near monday's deadline. it's unclear how many people this impacts but it seems the administration is trying to push back from the critics who charge more people will have seen their plans cancelled than will have signed up for coverage by year's

end. >> let's get to rick santelli now at the cme group with "the santelli exchange." >> hi, judge. bertha gets me thinking, the santelli exchange has to acknowledge this. i'm sorry, but she's a lot kinder than i am. sensitive? the administration sensitive? i'll tell what you sensitive is. sensitive is whether it big government in the form of big fed or big programs or big takeover or 1/6 of the economy, this is really unbelievable! and it just goes to show no matter who you are in the world, okay, that bigger isn't better if you take profit mode as a way, deadlines missed. gosh, what kind of memories o do all of you out there have? the president and the administration was offered a delay. did they take it? no. they chose to shut down the government. this is unbelievable! and right after that happened, i talked about the advanced decline line of policies okay in remember, we talk about how many

people lost policies. what they don't talk about are how many people are on each policy. i know in my family it just isn't one. harry reed was hospitalized today from the chicago cme group, we wish him a speedy recovery. for so many people in the obama administration, observation is going to be i see him in the parking lot, i'm observing him right now. let get back to how big government really gives a way to logistics. the fed can talk about a lot of things, hope about a lot of things but this is what's moving markets today. take the yield curve for example, this monster flattening. take gold. monster selloff. let's harken back to the notion that if you're crazy enough in this day and age to leave a lot of excess margin laying around, you're not really studying or keeping up with the times. many think it's the logistics of positions and the lack of excess margin that now -- in the old

day you'd have excess imaginin, you'd say, okay being we're going to stick with it. now everything gets observed at every turning point. you need to actually professional actively add to margin. no. they're paring down. what's really important, the 5-year note, their on interest went down a bit. talk about the good old days of mortgages at 14% and the housing market not affected but give me the opportunity of the 80 and the economy of 8 0z, i'll give you the same notion. whatever a rate was a month ago, if it changes, no matter how low, that is something to deal with in a pro active way. back to you. >> i'd go back to the 80s. rick, thank you very much. >> yahoo! finance is revealing its company of the year. who got the top spot? the big reveal is coming up next. >> also ahead, blackberry shares have been sea sawing all over the place.

look at that. up 10%. investors perhaps beginning to perhaps better trust john chen as interim ceo. he will be live and exclusive on this show. ♪ ♪ [ male announcer ] here's a question for you: where does the united states get most of its energy? is it africa? the middle east? canada? or the u.s.? the answer is... the u.s. ♪ most of america's energy comes from right here at home.

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just five more shopping days to christmas, and if you're still having trouble finding the right gift for the loved ones, our next guest might have the perfect solution. michael is the president of bliss, a global spa and personal care business. good morning. >> good morning. how are you? >> i am interested in why you think you're different. it says here you've revolutionized the space. how have you done that? >> we give the gift of bliss. and what i was thinking about -- >> my word. what does that mean? >> make you happy. we give you great services, whether it's an amazing facial and fantastic massage, manicures, pedicures, but also amazing products. >> there's one thing that's particularly caught my eye there. can you pick that up and tell us what that is? >> this is the powder mattic, it's brand new. and the idea is it exfoliates the lips, makes the lips smoother, softer, more full, makes the lip gloss. look at kelly. >> the last thing we need around here is another gadget or something that can be used to -- >> i didn't know you could exfoliate your lips.

>> well, exactly. there's no limit, is there? >> there's no limit. >> it's terrifying. >> teen fashion is watching very closely back at cnbc. >> wait until they make you -- >> you know who you are. >> you know who you are. >> you have had a great career. you're a marketer, that's what you do. >> yes. >> unilevers, maybelline, l'oreal, burt's bees, you then sold to clorox. where do you see marketing going? are you -- does social media replace television advertising ultimately? >> it's a tool. it's a tool in the toolbox. the idea is you want to tell a story. and the idea is you look at your toolbox, do i use it through television, through print, through social, digital? it's all tools. it's what's the best tool to tell your story. but digital is faster. it's more responsive. you're hearing from people directly. it's less expensive. so it's becoming a bigger and bigger tool. >> and is the tone of it changing? we were hearing from the guy who runs the dodge brand 15 minutes ago and they used the "anchorman" actor very successfully, but a much more

former, comical way of communicates. same with the buzzfeed. is the tone changing? >> absolutely. it's more of a dialogue and not just a monologue. because every other form of advertising is a monologue. this is a dialogue. you're hearing from people. they're speaking to -- you're speaking back to them and it becomes very personal, almost familial. >> i'm curious what the breakdown is with services and goods sold. you're a spa, but you have this growing line of products. >> about 50% of the business is spa, and 50% is product. >> where is it headed? >> more and more product. we're expanding across the world. >> services isn't higher margin? >> product me? >> services aren't higher margin? >> products are higher margin. >> we'll try that in the break. michael, good to see you. thank you. the college football season is upon us with four bowl games.

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college bowl season kicks off tomorrow, and while the players are focused on the games, we're looking at some of the best swag. dominic chu has more on that back at hq. chu? >> yes, that's right. holiday bowl season kicks off, right? four games tomorrow. the players taking the field will be getting into the holiday spirit, thanks to some of the fantastic gear they'll be getting for their participation in those games. this is one of the only times when players can accept or receive gifts, and there is a price limit-- $550. here's a sampling of some of the coolest bowl gifts. on december 28th, the russell athletic bowl will take place in orlando, florida. players will get a $450 best buy gift card along with a watch from timely watch company and russell athletic shirt. on new year's eve, you'll see the autozone liberty bowl. it's rice versus mississippi state. players here are going to get a pair of republic headphones along with a bulova watch,

sandals, shoes, other kinds of swag. the bbva compass bowl will see vanderbilt play houston, and players will get a new samsung galaxy 3 computer and cool oakley sunglasses, hats, balls, that kind of thing. those are some of the cool gifts. what if you feel like heading out to see the favorite team play in person? tickets will be expensive, though prices have been trending down, that's according to tick iq. the sugar bowl has an average cost of $311. the michigan state-stanford rose bowl has an average ticket price of $835. of course, the all-important florida state/auburn, bcs national championship, it will cost people an average of around $1,250 a ticket. now, i don't know about you guys, but i'm definitely going to be watching from my couch this weekend. back over to you. >> no doubt about that. >> why do you think the prices -- >> $1,245? >> yeah, first, they said the

super bowl for $300. and i thought, wow. >> if i gave you -- if i gave you a voucher, a best buy voucher for $450, what would you buy? >> god, that's a great question. i mean, i don't know. >> tablet? >> some sort of ganl edget. >> i'd buy a tv. >> i have some, but i want more. >> buy a tv and give it to someone else. >> or put it towards a tv. i don't know. here's what you might have missed if you are just tuning in. >> announcer: welcome to "squawk on the street." here's what's happened so far. >> as a society, we gave up on the market. we had over-regulated the health plans so they couldn't make cheaper products. we hit the panic button. and now we'll have this thing, which will be lame. and a lot of people will pay the fine. >> i don't think we'll see a glut. i think we'll be able to supply our demands, and i think we're on track to do that. we said in the next decade, and certainly that's the case.

>> the numbers for homes did -- had a glitch. everyone was talking about this this morning, but that's what bernanke wanted, again. he didn't want housing prices to keep going higher. i'm going to say something that's shocking, probably wrong, i'll really regret it, i think he's doing a good job. >> i can't wait for 12 months from now when we're talking about who had the better 2014, facebook or twitter? because that's when the battle is on. >> yes. >> it is game on between those two companies. >> when you -- [ bell sounds ] >> you're watching the opening bell. >> i'm loving don shannon, this guy is the real deal. he's been there, done it before, and has a proven track record. he's already shown he's not scared to make big changes. >> the two things that have to perfectly align for it to be successful, and the timing of the "anchorman 2" movie and the launch of the new "durango," just made it a perfect match. >> announcer: the "squawk on the street countdown to christmas" is in full swing. ho ho ho!

♪ christmas celebration >> oh, yeah. friday morning, good morning, we're live at post 9 at the new york stock exchange. let's have a look at where we are on the markets. tear another record-setting day. >> looking across the indexes, because we've hit fresh intraday highs. the dow hit 1,625.4 earlier, now 15 points below that level. the s&p 500 is sitting at its record intraday my, 1,817. >> and amazon.com among today's winners, crossing the $400 mark for the first time ever. and the 10-year notes, the yield there is off its highs of the morning. let's get to a woman who loves the 10-year and structured finance. >> that's right. spiked, it's now back to 2.9%, and the roadmap for this hour. blackberry shares on a roller-coaster ride in reaction to the latest results. hear what blackberry interim ceo john chen has to say in an exclusive interview coming up. the dow, the s&p 500, as we said, hitting all-time highs.

we'll explore the best ways to capitalize on the history-making rally. former citigroup ceo making a bet by investing in a peer-to-peer lending firm. meet the upstart that we and many are talking about this point. blackberry reporting a huge loss today, but as a result of the commentary from the cfo, the smartphone maker's stock is doing extremely well. let's head to jon fortt, in canada with the full lowdown this morning on blackberry. over to, jon. >> hey, simon. yeah, 17%, the stock just ticked up 17.12%. can't remember the last time i saw a move like this on a stock, especially on news like the earnings news that we had today. but blackberry hasn't gained more than 13% in a day since march 11th when it gamed 14.09%. of course, we don't know how this day is going to end up. but the 30-day average volume is 13.6 million shares, and already up above 50 million shares today.

so what is the positive news here behind the numbers? let me give you a few things. ceo john chen said, and also it came out on the call, they're looking at the march/april timeframe for the first blackberry 10 devices with fox con. they have a five-year arrangement there with manufacturing that should minimize some of the risk, control some of the costs, concerned with manufacturing these devices. looking for the device business to be cash-flow positive eventually. the whole business to be cash-flow neutral by the end of the coming fiscal year, and ceo john chen said his number-one focus is account management in blackberry enterprise server. of course, that is blackberry's soul, historically, the back-end software that manages not only blackberry devices now but, also, ios and android, a number of competitors trying to come in and steal away the business from blackberry. chen has a long history in enterprise software. he sees that as a crown jewel to

defend. i'll be asking him lots of questions about that and exactly how he plans to do it. interestingly enough, he also said that longer term, the plan is for fox con to manufacture and design the mainstream and lower-end hardware that will bear blackberry's name, and their designers in north america would focus on the higher-end devices, but clearly, the focus of the company overall shifting toward enterprise and government customers, shifting towards software and services, and the idea is to control the costs associated with the devices business, figure out how to get that as profitable as possible, guys. >> and, all of this, jon, after the shares had initially moved lower. just an incredible move. we'll keep an eye on it. can't wait for the interview, as well. jon fortt, having the ceo of blackberry coming up. tesla is known for selling directly to consumers through company-owned stores, but today, the electric carmaker is opening a service and distribution center in chicago. that's taking tesla one step closer to the traditional

dealership model. phil lebeau is in the windy city with more details. hi, phil. >> reporter: hey, kelly, we're actually just a little north of chicago. we're in the suburb of highland park. and these northern suburbs, this is where a lot of luxury vehicles are sold in this area, and now, tesla has opened its first, what they call, service center and showroom up in this part of the city. why is this significant? well, you touched on it during the introduction, that until w now, for the most part, when you look at most of the tesla showrooms around the country, they've been galleries set up in high-end malls, predominantly, getting a lot of foot traffic, but it wasn't that easy to set up a test drive, or this is hopefully going to be easier for them. they now have 50 stores and service centers in north america, and i get this question a lot. what are the top markets when it comes to tesla sales? no surprise, california is the number-one market in this country in terms of sales. texas, new york/new jersey, here in illinois, and florida. those are the other -- rounding out the top five for tesla

sales. as for the direct sales and the battles that have been going on around the country between auto dealer groups and tesla, sales are technically banned in three states right now -- texas, arizona, and maryland. and this week, the ohio auto dealers, they sued tesla, as well as the bureau of motor vehicles in ohio, to stop tesla from selling vehicles in that state. we'll see what happens with that legal battle. meanwhile, shares of tesla today, up more than 2% as they've had a nice little rebound after getting down as low as 130, 129 just a few weeks ago. guys, this is what we'll see more and more from tesla, more of the service centers and showrooms where people cannot only get their car charged up or serviced, but if somebody wants to stop here and take a test drive, they can do that. guys, back to you. >> one of the great stock stories of 2013. phil, thank you very much. phil lebeau with the latest on tesla. yahoo! finance is out with its annual company of the year. this year, it's where dreams come true. mike santoli from yahoo! finance

is here with us. you should note that cnbc and yahoo! have a business alliance to share and co-produce editorial content. good morning. >> good morning. >> so formalities out of the way, the big reveal if you would. >> a little company called walt disney took it. this is the second time we've gone this. this year, art blended with science. obviously, the financials were all there for disney in terms of record earnings, stock outperformed the market by 10 percentage points. they shared a lot of cash with shareholders, huge buyback for years, and 15% dividend increase. and i think also what took it for them for us was this year was a culmination of a lot of things they'd been driving toward, the strategies panned out and came together. $4 billion box office total, a record for disney, and it really was the pixar, the marvel, the acquisitions of past years bearing fruit in the film slate. and i think, also, the key to us is the way they've stayed relevant to -- in the digital world, more than relevant,

remained a leader and became somewhat agnostic in terms of how the media and entertainment product is distribute fld. >> who did they elbow out for this? >> the others that we considered were boeing, because it overcame the perceived drawbacks of the dreamliner, a great u.s. manufacturer. and mattel. very under the radar, but for years and years, mattel has kind of defied the idea that physical toys were going away, a great global story. >> right. >> really shareholder friendly, done a great job of distributing cash to shareholders and a good corporate citizen. that's another element with disney, they at least treat customers and employees relatively well. >> i'm interested in what's going right at disney, you haven't mentioned espn. >> yeah. >> such a large slice of what they do. >> well, it is going right. it wasn't so much a 2013 story. it's a story of, it's still this tremendous cash cow leader. and i think one of the keys is, you know, one of the knocks on disney, some of the other

traditional cable companies, too wedded to the cable bundle. to reliant on this model of delivering a package of expensive programming on a monthly basis, and it's true. yet the bundle still works for a lot of people. and yet espn3 is a tremendous streaming app, and so they actually are pivoting toward making it, you know, a mobile brand as much as anything else. it is a huge part of it. >> isn't that quite dangerous potentially for the longer term? >> it's the only way to go longer term, i guess is the way i would think about it. so for now, i don't think the cable bundle is being disrupted. i think what's interesting, too, in terms of how they're treating things, they will be producing original programming, a marvel-based series for netflix. >> right. >> so they're not considering the new platforms the enemy, they're not trying to hide their head in the sand. >> good to see you. >> thank you very much. >> let's send it over -- i'm sorry. >> no, you can. >> no, no, you can. >> send it over to dominic chu for a quick "market flash." >> well, kelly and simon, check out air piat pharmaceuticals, the company saying it would resume selling the leukemia drug

in the united states. sales were halted two months ago due to safety concerns. the fda has approve add revised label for the drug, including a boxed warning and updated safety information, so those shares, aria are up 17%, simon. back over to you. >> speaking of shares that are up today, this morning, we are going to focus on the challenge still to come at blackberry. an awful lot of short covering on the stock. we have a live and exclusive interview with the interim ceo john chen, who is really front and center today. also, rick santelli working away in chicago. rickster. >> hi, simon. listen, our country, you know, kind of taking over the markets, taking over health care. but something great happened. mexico's going the other way. they see the energy craze. they're getting the government out of the business. we're going to talk about exactly that with the 35th commerce secretary carlos gutierrez under the second term of george w. bush, all after the break. you want to hear this one.

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president of russia to pardon me due to my family situation, and i am glad his decision was positive. the issue of admission of guilt was not released. as soon as we get that statement up, we'll keep showing it to you. remember, he has been in prison in russia for the last ten years, a former billionaire, ran one of the largest companies in russia. yukos, an oil company. when he ran into trouble with vladimir putin, he was arrested and charged with a number of crimes, but many people believe he was punished by putin for trying to challenge him. once again, he put out a statement. i'm glad his decision was positive. the issue of admission of guilt was not raised. i'd like to thank everyone who's been following the case all of these years for the support you provided me and my family and all those unjustly convicted and continue to be persecuted. he thanked his lawyer and family and friends and said he is looking forward to the new year. we understand he has landed in berlin.

we were told originally that's because his mother was in germany. but now we have statements from his mother, who are in -- who's actually in moscow. so a lot of confusion there. but suffice it to say, it appears he is out of russia. simon, back to you. >> one of the biggest stories of the last decade, as you know, internationally. so putin basically is trying to -- is this a p.r. game in advance of the winter olympics? >> yes, absolutely. trying to look magnanimous ahead of this. remember, a number of senior -- a number of world leaders have decided not to go to the olympics. some have been very explicit to say it's the persecution of minorities and gays, et cetera, in russia. it's quite an embarrassment to him. remember, this is supposed to be his big vanity project. so he's trying to improve his image. that's the assessment from a lot of folks. >> the act itself proves it is the kingdom of vladimir putin, michelle. >> yes, justice is capricious there, yes. let's send it over to chicago -- send it over to chicago with rick santelli and

the "exchange." >> thank you. i'd like to welcome the 35th secretary of commerce, carlos gutierrez. thank you for taking the time out of the busy holiday schedule. listen. to me, we hear some amazing things going on. while we're debating takeovers of health care and trying to squash the energy craze, we see mexico doing something completely different, changing their constitution, taking energy out of the government's hands, putting it in private sector. how is that going to affect trade? i see now that the -- mr. kerry, secretary kerry, is talking about potentially a latin america trade agreement going through nafta. you've been there. can you tell us your thoughts and how energy -- [ overlapping speakers ] >> -- there's a lot to do. we saw in the gdp numbers the importance of trade, especially energy. our energy -- our oil imports are down, so, therefore, our net exports are up, and that's adding to gdp. you know, the world is regionalizing, rick.

asia is going to become a trading bloc within the next decade, led by china. the biggest trading bloc in the world. we still haven't stitched up all of our individual trade agreements that we have in our hemisphere, so we've got a lot of work to do in our own neighborhood. the single biggest thing going on in trade right now is a free trade agreement negotiation with the european union and the u.s. this can change the game. this can change, you know, the commercial balance of power in the world. the problem is the president doesn't have trade promotion authority, so he really doesn't have authority to negotiate an agreement that would warrant a yes-or-no vote, and we're moving very slowly. so we've got to move forward, and as you say, the rest of the world is liberalizing energy, and we are clamping down on the things that are helping us. fracking, horizontal drilling. that's what drove up our

production of oil, and the government is attacking it through regulations. so, you know, this is a great quarter, but we've got some real regulatory headwinds heading our way. >> another issue i consider you an expert on, and like myself, we have immigrant histories, whether it comes to immigration, like anything in government, whether you're talking regulation, health care, immigration, we want the three areas to work good, to work well. but it doesn't mean that every different piece of legislation is going to accomplish that. what do you think we ought to do on immigration, and, hopefully, we learn big, ginormous, 1,000-page programs like obamacare, it isn't the way to go. >> yeah, you're right. the one thing we have to think about on immigration, beyond the 11 million undocumented and border security, is what is the new immigration system? because the system today doesn't work. and the reason that we have illegal immigration is because our legal system is broken. so the people in congress have

to fix the system. i'll give you an example. in the senate bill, they've got a quota for construction workers. 15,000 nationally on an annual basis. we need 15,000 construction workers in miami. they have a quota of 110,000 agricultural workers. we need a million. so even with this new legislation, we're still going to have a problem until we recognize that we cannot grow without a growing workforce, and our workforce will not grow without immigration. it's as simple as that, rick. it's an economic issue, and it's staring us in the face. the land of immigrants is confused about immigration -- >> listen, i couldn't agree more, mr. secretary, and, hopefully, we will explore the greatest strength that has made america one of the greatest countries, and that, of course, is welcoming -- >> absolutely. >> -- those who want to participate in the free enterprise system. >> always a pleasure, rick.

>> thank you for taking the time out. thank you. happy holidays. merry christmas. >> merry ychristmas. >> back to simon. >> i'll pick it up, rick. up next, speaking of ceos, stay tuned for a live and exclues inch interview with blackberry's interim chief executive john chen. "squawk on the street" will be right back. ♪ ♪ [ male announcer ] the mercedes-benz winter event is back, with the perfect vehicle that's just right for you, no matter which list you're on. [ santa ] ho, ho, ho, ho! [ male announcer ] get the all-new 2014 cla250 starting at just $29,900. thanks for giving me your smile. thanks for inspiring me. thanks for showing me my potential.

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>>. >> it allows students to take out loans at a lower rate and investors can bet on future mba graduates. david cline is the co-founder and ceo, and he joins us at post 9. welcome. >> thank you. >> what you basically do is seize on a market opportunity. apparently, you think you can help students borrow at a lower rate and generate a return. how? >> that's right. common bond is a student-lending platform. it's committed to making the student loan experience better.

we connect our community of borrowers with our community of individual and institutional investors. borrowers can save about $17,000 over the life of the loan, while investors can make a competitive financial return. >> what's the return? >> we're looking at about 5% on an unlevered basis. >> and just to explain, how do you pool the risk? how does that work? >> what we do is we get a group of investors interested on coming onto the platform. we pool that capital, to minimize the risk of any one particular default, disproportionately affecting one investor. we take that capital and provide it to a pool of borrowers. >> i guess over time, though, just by the nature of people going through college, you're going to have to become more aggressive towards them? i mean, are you going to be able to police this sufficiently well? do you have the ability to -- >> aggressive in terms of -- >> in terms of people saying, i'm having trouble repaying my money. there's a life cycle to a start-up like this. >> that's right. what we've said from the very beginning is we have to be

thoughtful and methodical in how we grow. we decided to focus on a group whose earnings potential and employment prospects are high, such that defaults remain low. we would expect based on who we're targeting so far for defaults to remain at the historical 1% or lower. >> no kidding. >> given who we're targeting. >> you know what the numbers are for student loan debt, double digits, some of the worst default rates of any kind of debt. that's what you're -- now, do you go after these individuals? how do you identify them, or do you hope they come to us? >> what we've done, we've focused first on mba students and graduates. we're at 25 schools now. we expect to expand to other degree programs, as well as other schools. >> are you a bank or a technology company? >> in about five to ten years, i think people will debate which one we -- >> i'm asking, because i would really love to have the vision of where social media takes us. >> yeah. >> in terms of transaction and banking.

it's changed the way we communicate. how do we transact in the future? >> to sort of understand the vision, it's important to understand where we came from. you had the financial crisis, a lot of trust was lost. trust between people and banks and vice versa. banks have since retrenched significantly. a lot of regulation and regulatory uncertainty have kept them retrenched, creating this huge vacuum for new and emerging financial companies, financial/technology companies, such as common bond, and cross asset classes. whether you look at small business or credit cards -- >> i'm asking you something different. in the future, how will i pay for my goods at target? does it go through visa or a bank, or social media? >> more of the latter. i think what finance looks like in ten years is unrecognizable to us today. i think the platforms that are coming to bear, whether it's the lending club and prospers of the world, or the common bond and the student loan sector, how we interact and what platforms exist to let two-sided markets interact will change the way we

think about and interact -- >> and (unintelligible) just in a word? >> fortunate. >> for him or for you? >> hopefully, for both. we've been super fortunate to have him and others like tom boss, provide fantastic counsel to us as we grow. >> nice to see you. >> thank you. >> thank you for coming in. we're up 76 on the dow. dominic chu? >> check out boeing, at session highs. the jetmaker winning a $7 billion order from cafe pacific airways for 21 boeing 777 jets. those boeing 777-xs are due for launch in 2020, so the shares are up 1%. over to you. coming up, what does the future hold for blackberry? find out what interim ceo john chen has to say, live and exclusive. you'll be aware his comments on the conference call this morning have led to a major rally and short covering on blackberry, plus the european close when we return. the energy in one gallon of gas

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and the markets are closing across the u.k. and continental europe. stocks finishing, in fact, for the strongest weekly gain in eight months, helped, of course, chiefly by the fed's announcement -- the tapering announcement we got from ben bernanke. also in the spotlight today, a reading on german consumer confidence that topped expectations after those business surveys and investor surveys all came in strong for the week, as well. that's all overshadowed s&p

cutting the e.u.'s aaa credit ratiing by one notch. it's very inside baseball. look at that for the week. european stocks up 3.5%. >> not a bad performance, and the same goes for how stocks are doing here. let's bring in bob pisani. hey, bob. >> it does not get any better, we're technically at new highs. but the kind of things i look at, technical indicators. prices at new highs. the breadth strong. 5-to-1 earlier in the week. the volume is heavy. we're getting the quadruple witching expiration, but all during the week it's been heavy. this is as good as it gets as far as technical indicators. for the week, everything is up, 2.5%, 3%, the dow is up a little better, about 3% for the week. but we're seeing the russell 2000, the s&p 500, put the chart up, nasdaq, all of them up. again, 2.5% to 3%. there's the chart. look at that.

everything is on the upside. nasdaq doing really well. getting rebalancing, so some gyrations in big stocks in the afternoon. apple, pfizer, they're getting reduced in the s&p 500. remember apple had a huge buyback program going on throughout the week -- the quarter. so there'll be gyrations in these stocks. they're reducing the weighting in the s&p 500. there are a bunch of names increasing their weighting in the s&p 500. they include, of course, facebook, which is going into the s&p. general motors will have an addition, pioneer natural. they don't always result in a lot of price movements, they try to dampen down the price movement, but you'll see a lot of volume gyrations in the last hour. i'll cover that, as well. people have asked me how fund flows, etfs, mutual funds look. i think it's enough time for us to make some conclusions right now. so look at this. you want to look as a percentage of assets under management, in terms of flows. that's the way to look at it. not dollar value. the big winner has been japanese stocks, 25% increase in their

assets under management. european union stocks have had a 5% increase. high yield is still doing well. that's had an increase. look at u.s. equities, only 3%. so, yes, inflows into the stock market. but the biggest flows have been in japan and in the european union. not in u.s. stocks. how about outflows? emerging markets have had outflows. treasuries have had outflows. municipals. gold and silver is a big loser, lost about a third of the assets under management. here's the conclusion you can make. the first thing is that we are seeing some real changes here. there is a great rotation that has slowly started out of stocks and into bonds. the second thing is that the stock fund inflows we're seeing are international for the most part. japan and europe. not the united states. and i don't think that's something that's been pointed out too much. so we'll look forward to 2014, and we are seeing changes, though, in all of the fund flows. guys, back to you. >> it changes all the time. bob, thank you. what a move for blackberry today. the stock storming back, and you

can call it short covering if you like. you know, the price action is the price action, and all on comments from blackberry's interim ceo. john chen. make sure you keep it here. we'll be talking exclusively to blackberry's interim ceo john chen after this short break on cnbc. if hey breathing's hard.me, know the feeling? copd includes emphysema and chronic bronchitis. spiriva is a once-daily inhaled copd maintenance treatment

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>>. >> coming up on of "the half," are looking to close out a solid week. after today's gdp number, can anything stop the rally? is this year's hottest smart money trade about to hit a roadblock? we're talk about why a red flag is being raised on japan. and one old-school tech stock is causing a fight on our desk. join us for the debate at the top of the hour. we'll see you in just a second. >> thank you, scott. over to jon fortt now in waterloo, ontario, joined by a special guest this morning. jon? >> thanks, kelly. ceo john chen of blackberry, sitting down for an exclusive interview after an earnings report that had some issues, but investors seemed to be listening to closely to what you were saying on the call. optimistic that the stock can be turned around, up about 7 bucks a irs a share. you said in five quarters, you can have the losses stenched, and you think you'll be growing after that?

how long before you get on a pace before the company is seen as a real growth engine again? >> well, i -- again, i think it's important to understand that, you know, what i have kind of guided is an expectation to go cash flow neutral from operations the end of fiscal year '15, and in fy '16, i expect to be profitable. so, you know, you need to see the growth in fy '16 in order to do that. it cannot be from costs containment and so forth, although we seem to be doing pretty good there. >> yeah. tell me, what is blackberry going to be in your vision? the talk had been over the past couple of years we're going to go up against apple, we're going to go up against samsung, we're going to beat them in the platform, we're going to beat them in devices. you seem to be talking more about the enterprise now. what is the core of blackberry going forward? >> excellent question.

so i think where we are -- what kind of reputation that blackberry has, out in the field, out in the market? we are being viewed as secure. we are being viewed as very high-quality devices. and we're being used by mostly enterprises. so when i look at the situation, i think we're offer end-to-end, the best way to do it, offer end-to-end security solution, communication, productivity that is mobile-based. and that's where we're going to be, at least for the foreseeable future, in the next couple of years. i think we had some issues of the handset business, in temples of the consumer world. but the enterprise still loves us. that's where i'm going to focus in on. >> in your messaging over the past few weeks, i've seen you talking about that, blackberry enterprise sever, reminding people it's not about just managing blackberry devices. now you manage ios and android, as well.

is that the bulk of the message going forward, you want to be software and services on the back end primarily and not make everybody think that this is all about the handsets? is that what you're pushing? >> yeah, in a way. i'm really -- i can really think about us as an end-to-end secure solution sense, so that would include handset. but you could pick your handset, okay, and i'll get back to that later. pick the handset. of course, if you use the blackberry handset, it's the most secure. okay. then you have the best -- the mobile device management layer, driven by the server. but it's more than that. it's always the identity management. there are transsection management. there are productivity management, a secure -- i mean, this is a lot more than just being a managing mobile device. >> right. >> so that's another -- and then, where the bus -- i mean the -- the bbm, the blackberry messenger, which is the most secure messaging environment there is.

and so, those are all the stuff that's collectively together. >> i want to get back to that. talk to me about fox con, the deal that you've done there. it seems like you are minimizing the risk inventory-wise of the costs getting out of control and manufacturing. what kind of new flexibility does this give you? and what do you give up in this deal? >> i give up very little, honestly speaking, but i think this is the right partner to do business with together. so it's just a very, very brief thing about fox con. when i came here about 45 days ago, the number-one thing i know, the handset volumes are dropping, and our fixed costs are too high. the first thing i need to do is get rid of the fixed costs, if i can, and then the inventory costs, so i don't have to continue -- don't have to be writing down things. we deal that. and the foxconn is one big part

of the equation. we'll work with them, developing the manufacturing model, they will do the billable materials, have tremendous assets in supply chain, the ability to get costs down, great logistic, great quality, we'll provide the software. >> so they're taking on some of that risk. >> right, a lot. >> what do they get, margin? >> margin. at the end -- you know, we will get a certain amount of return. i won't be able to articulate that, because this is all prior to contract, and beyond that certain amount, they will start sharing on the margin. >> so that means you're focused on margin from blackberry enterprise server becomes all the more important. you're minimizing the risk on the hardware, not expecting the growth in the near term. so you need to go out and convince the cios, the organizations that have been with you for a long time -- a lot of them on wall street -- not to leave enterprise server. how do you do that? how many hours are you on a

plane, making sure that happens? >> that's a great question. so i think if we're correctly with the foxconn arrangement, i'll see revenue up tick on the handset world. and the reason is we're going to go jointly attack and go into emerging markets. you know, we're going to do indonesia first, and do malaysia, and a list of countries that we'll work with. going to the market. there's a lot of good things that happen there. but like you pointed out, it's really important that we get to the enterprise server world. >> how do you convince them to stick with you and to grow with you? >> well, i think in the past couple of years, the issue that the enterprise customer has with us is a clear direction and financial stability. i think i can now lay out a roadmap to show that we are managing that.

>> hmm. >> if you -- you know, from a product perspective, we have the most secure end-to-end product. >> what does that mean anymore? because with the nsa controversy, right -- >> mm-hmm. >> -- everybody who says they were secure in the past is in question. are you really secure? can the u.s. government snoop in on blackberry communications? can you say absolutely you are the most secure network above everybody else? >> well, i'm not going to drag government into commercial, but if you look at a few governments, you know, i think -- i think our white house is still using blackberry. last i checked, the german chancellor is using blackberry. you know, we have a whole host of government -- >> now using blackberry. >> yeah, that speaks volume of that. i'm sure i don't want to get a letter from -- you know, from some other government bodies out there, you know. but we have a lot of great customers who have trusted blackberry and have checked it out, so to speak.

and we, by the way, we have the rights to operate in the u.s. government as well as the nato. so it's one of the few very high-end requirement -- security requirement specs that we meet. >> you engineered a turnaround at cybase. you didn't have to take this job. why did you take it, and is this harder? is this going to be harder than cybase was? >> why did i take this? that's interesting. so after i left cybase, we successfully acquired by s.a.p., i stay a couple of years, and then i decided to do something else. anyway so, you know, i do something else for a year. when the blackberry situation happened, i felt it's such an iconic -- this is such a fun thing to do if we do it. it's tough, really, really tough. but i think the market needs blackberry to do well.

i've talked to a lot of my friends who are in the enterprise, cios, carriers, so forth. they love for blackberry to do well. so this is a huge challenge. i love challenge. kind of, like, you're a ballplayer, you want the hardest game, i wanted to do this game. that's one thing about -- is it harder than cybase? well, pros and cons. you know, it's not as sticky, but it's a much faster-growing market. so, you know, it's a lot more hit-oriented. if i could bring out a really cool phone and then tie that into my enterprise security offering, you think the company could do very well really quickly. >> you have a lot of investors betting on you today. volume is high. the stock is up. thanks for sitting down with us. >> thank you. >> and let's do it again next quarter. >> okay, love to. thank you very much. >> john chen of blackberry, thanks for joining us. back to you guys. >> well done, jon. thank you very much. jon fortt in canada. ecommerce is incredibly important to retailers this holiday season, but now more

than ever, consumers want to make sure clearly their information is secure. our next guest is a leading investor in cyber security, and he's investing in a new rating system to try and help you stay safe. think moody's for suber security. we'll explain after this short break. life's an adventure when you're with her. and it always has been. but your erectile dysfunction - it could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enough for sexual activity. do not take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure. do not drink alcohol in excess with cialis. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, seek immediate medical help

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it almost goes without saying that ecommerce is important to retailers during the holiday season. but how can consumers feel confident that their information is secure? silicon valley, the hugely successful silicon valley, menlo, has been one of the leading investors and the firm says it will continue to be an important investment theme next year. we have the managing director from menlo joining us live. welcome to the program. >> thank you for having me, simon. >> what is the cutting edge of where you want to go next year? >> i think the most important thing we find right now is that security has become a board room issue. everybody in the board room wants to know how secure are we, how can we measure security, how can we manage it? we cannot completely solve the security problem, but we can manage it. and we have an investment in a company called bitsite that lets us get a rating on how secure

your infrastructure is. >> how would that be used? how would that impact people? >> let me tell you an example, right? someone could look into your house and know if your door is unlocked or your window is open, they know you're a much easier target for the thief to come in. what bitsite does, from the outside, looks at companies and finds if they locked the doors and if the windows are open. if they have, in this case, we did a report on target, we could see that, you know, while they were secure -- the last few months, a lot more incidents have been happening, and that's a leading indicator that you might be, you know, exposed for fraud. >> thank you. that's very interesting. you guys actually had an indication that target was more vulnerable. is that something you could think about providing either to the public or to companies to shareholders maybe who are willing to pay for that information? >> yeah, so we think like moody's, which allows us to measure your credit and third parties can look at it to understand. we think it's a way of measuring

security. if you are a shareholder, you can measure the security of your companies. it's not perfect. but it's, like, more information than having no information. >> i guess the question, then, becomes what do you do about it, because in the same way they'll issue a list of he's where you have fallen short, there is a game plan. is there a game plan with something like bitsite, so a company can turn around and say, well, we need to do x, y, or z? >> absolutely, right? if you find out the incidents are increasing or people are using your network to send spam out, you can go and start thinking about how to fix it. what's happening right now is there's a whole supply chain in security. first, the little guys do things, and those guys that do spam, they sell the information to larger criminals who then come over and take over the credit cards. what you're trying to do is prevent the first incident so you can block these guys before they come in. >> i find it fascinating, thank you, that through this interview you have chosen to focus -- you've chosen to focus on one

company, and that really, i guess, speaks to the fact that you believe that winners in a space are disproportionately rewarded, and that's, therefore, why you have to concentrate? >> totally. and, look, cyber security is going to be a big, big issue. it already is. what we're finding out is how close it's hit to home, where it's nsa snooping, which is a big issue, or companies from all over, countries all over, coming into america to steal our information. we think it's very important thesis. and if you don't do this, ecommerce can't happen as it's happening how. >> you are, of course, new to menlo, one of the newest managing directors. i don't mean to intrude on private grief, can you tell us the story about when you were involved in plaxo and sean parker asked you to meet someone? [ laughter ] >> you're bringing up some sad memories for me, simon. you know, sean was going to boston and he said he would meet a college student at harvard who's had this idea for a social

network. i said college student, dropout, social network, come on, i've got better things to do. that probably cost me $100 billion right there. >> thank you. do you think uber could make up for it? >> you know, i think it's a great company, and we're very proud to be investors there. >> all right. thank you. good to meet you. you're a good sport. thank you for joining us. one of the newest -- >> thank you for having me. >> -- one of the newest managing directors of menlo. navistar making a move to the downside. shares are down 4%, keep it right here. ♪

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welcome back to "squawk on the street." check out navistar, the truck and engine maker, reporting a 13.5% drop in quarterly sales due to weaker demand. the company saying it's transitioned to a new emission technology cut into the market share and hurt its sales, but the shares are down to session lows. back to you. >> thank you very much. we want to do a quick check of the major indexes. we're sitting at record intraday highs. the dow jones industrials average at 16,264, up 85 point, .5% today. even stronger, the nasdaq up 1%, bolstered by an amazon, simon, hitting $400 a share for the first time. the nasdaq at 4,100 on the money

right now. >> one of the great movers of the morning has been blackberry, done a full 20% from bottom to top in the wake of the ceo explaining the strategy, a huge amount of short covering. of course, we had an exclusive interview with the man himself on this network within the last half hour. this is what he had to say. >> i think it's important to understand that, you know, what i have kind of guided is an expectation to go cash flow neutral from operations to the end of the fiscal year '15, four, five quarters from now. and after that, the entire year in fy '16, i expect it to be comparable. >> look at this chart. extraordinary. an awful lot of short interest. that's why you get that sort of move. it's 20% top to bottom i was told. >> 20 percentage points, and it moved down premarket, and jumped up 17%, and now up about 12%, $7. but people, frankly, they think the ceo, the interim ceo is kind of a stud. if he can't do it with this

company, nobody can. >> what an honor to be described as a stud by kelly evans. >> no, this is what i hear. no, i'm just quoting the feeling out there, i think, how to he's coming in, really trying to strike a turnaround. >> see you on "closing bell." >> all right. that's it for us here at "squawk on the street." as we hit noontime, it's "fast money" and "halftime." >> all right, guys, thank you very much. trade of the year, after its monster move, is japan still a great place for your money? the fund manager whose firm overseas, $500 billion, tells us. in meg we trust. hp is one of the top performers in the s&p with shares nearly doubling, but can the run continue next year? we'll debate that big question. first, the top story is everybody's top story today. stocks poised for the biggest weekly gain in three months following a much better-than-expected read on gdp. what does it mean for a santa claus rall