good morning, everybody. welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. yes, we are all here this morning. there is a major snowstorm shutting down roads, canceling flights, closing work for thousands in the u.s. out there. some areas are expecting a foot or more. but the problem isn't just the snow. it's windy, it's really, really cold. be careful, don't go out if you don't have to. we are going to have a live report from the weather channel in just a minute. if you're home, snuggle up. we'll tell you about what's happening on wall street today. the s&p beginning the new year with its worst performance in three weeks. this is the worst performance for the year. it was the only trading day of the year. the dow was down for its worst

performance that it's seen in about two months. energy and technology companies led the decline, many of 2013's strongest performers were down for the day. if you're taking a look this morning, you'll see equities are indicated higher. dow futures up by 26 points above fair value. s&p up by close to two points. oil looks to be a major market story. yesterday there was a late day swoon triggered by the death cross. that's when something -- you see the 50-day average moving below the 200 day moving average. it's viewed as a bearish sign and you did see a big sell-off. we saw wti crude falling all the way back down to $95 and change. this morning on, it is still down there, down another 17 cents to $95.27. had been close to $100 a barrel before. also worth watching today, the 10:30 eastern report on natural gas inventories. then we have the latest oil decline coming about a half hour later. on the economic agenda, we have the major automakers reporting. the number of vehicles that they

sold in december tends to be a pretty difficult month. you have mike jackson that told us in the past christmas is a huge season for them. phil lebeau and veteran auto reporter phil lagrossia will be joining us this morning. later today, ben bernanke will be speaking at the america economic association in philadelphia. many people are looking at this as the chairman's farewell address, so people will be watching closely. steve liesman will join us from philadelphia with the nbpr chairman. andrew, good morning. >> good morning. got a little bit of corporate news on this snowy day. let me tell you about it. boeing machinists will be voting today on a contract tied to the 777x. the deal would concede some pension health care benefits in order to secure assembly of the company's new airplane in washington. boeing has been exploring building that elsewhere after the union rejected the contract last year.

facebook rejecting a class action lawsuit. the plaintiffs alleged the social network systemically monitors private messages and hairs that information to marketers. facebook says the allegations are without merit. going the has faced similar lawsuits for same issues. fireeye has now acquired forensic specialist mandiant for about $1 billion. it's best known for revealing that military hacking attacks on u.s. company. analysts say the deal is bringing together two of the most respected ceos in the industry. david dewalt and devin mandia will join us live at 6:50. are those guys coming here in the snow or are we going to get them remotely, do you know? >> you would think we got like

eight feet of snow. i can't imagine that they would be coming here. i can't imagine anyone would even have the courage to open their door on this day. if you listen to the radio, these people in new york. but i have a question. how does my computer know that there's snow and it's not supposed to work? >> is it really booking? >> i can't get outlook. i can't get these other names. >> stayed home this morning. >> i didn't have any coffee. >> oh, boy, you're going to be grouchy. >> so my first grouchiness is this stupid death cross has predicted 15 out of the last two sell-offs. last year we had that stupid death -- >> no, no, the sell-off was yesterday but there are people saying this was a one off event. >> we had death crosses about ten times last year and a couple the year before. >> art cashin was saying yetd yesterday, this doesn't mean it's going to happen over the number of days. there's some weird activity. >> but we reported on the death crosses last year. we were up 30%.

so before you get -- >> our computers are so screwed up. now my computer is joe's security. >> are you guys marrying each other? >> you don't want to -- >> be careful. you didn't even know those websites existed, did you? >> doing some pretty -- no. >> early in the morning. >> i thought you knew to use incognito. you're doing it straight up on explorer there. >> i'm watching all of our promo things, all of our little commercials. i saw carl's. he's a boxer. i saw yours this morning, by the way. cramer is waiting on people at a bed & breakfast. i have to go and stay over there. more, more coffee. can you imagine asking for cramer for more coffee? >> does he do that every morning? >> these eggs are a little runny. i said overmedium. i would love to do that. simon is --

>> does the offer -- does he offer stock advice when he's bringing you the coffee? >> that's a good point. no one works harsher. >> that is true, actually. >> i felt badly this morning because i didn't -- >> super early, too. >> he was talking about working harder and i said yesterday i wanted to be able to do what i did with a broker, just talk about business, but just waste time. and i'm thinking, wow, that's different than really working hard. anyway, let's get back to this nasty winter storm. i lived in colorado. you know, it's nasty out there, but -- >> how long did it take you to get here? >> it took a while. i had a great driver. i was ready to take -- i was going to take penelope's car in here. it has four-wheel-drive. >> i left a lot earlier this morning. got the cars cleaned off. that's the first time that's happened in the entire time i've lived here. >> i don't want to -- >> no, i'm not.

i've got to take what i can get. >> why is this happening? >> my computer is not working. >> anyway, it's a big storm. if you haven't heard of this storm, i don't know, your power must be out. but then your power is out because of the storm because you know about it but you can't hear me now because your power is out. anyway, parts of new england have seen as much as 20 inches of snow. the weather channel's jim cantore has tried to find the worst looking place to be standing right now. that's what these guys do. look at that, he's being blown back by the wind. jim cantore, good morning. >> joe, i'm moving because i don't want to freeze in place. it's kind of the back and forth bobble in through here. tell cramer, if he wants to wake up, he needs to come out here. this will wake you up, baby, i promise. first of all, i'm ride by the ocean and it's 11 degree. i've covered tons of storms in new england, but you never really get that kind of cold

accompanied with snow at one inch an hour here. we've had at least 14 inches here in downtown boston. joe, you're a skier, you love this stuff. it's like fluffy pixie dust owe out here. zero visibility. with these windchill webs it's awful to be out here. just ask my cameraman. this is the deal with the storm. it's going to pull out later on today. we should improve today. remember those planes that happen supposed to get in this morning will not be there for the afternoon flights. we expect a lot of cancellations. once again, we had over 8,000 delays and cancellations yesterday nationwide. 8,000 delays and cancellations. that is incredible. obviously, the bulk of those coming in and out of o'hare.

we have another one coming through. we may get rain out of that one as we go into sunday. monday and tuesday, some of the worst weather that we've seen in terms of cold makes its way down to the midwest. chicago, the record setting high temperature. in other words, how cold has it gotten during the day? minus 11. that's the cold record low maximum. we could be, actually, breaking that. and then there's cold. football in green bay, could be the second gold eest game ever. that will make folks appreciate being out in the stands, i'm sure. >> you know, i understand this sets a lot of people back and there's some danger involved and everything. but i kind of like it and you know the thing that you pointed out, and when i went out this morning, stuff blow -- its blew in, it all comes in. >> and it's like, shut up so i

can get back in the truck. >> but that means when it stops snowing, if the wind is blowing, it's going to seem like it's snowing all day long, right? >> exactly. that's the danger of the whole thing. i've been in situations where the sun is out, blue sky, you're driving along, whiteout positions. some of these areas have gotting about 44%. how much snow can i squeeze out of water? it has some -- in this case, it's about 30 inches. i'm trying, but nothing. >> would they delay the super bowl if it was this weekend? >> they've got plans to possibly do this. yeah. >> the super bowl deal is, if

we -- honestly, if we get a crippling storm like this in new england, i think they would delay it. and the pattern may change towards the middle later part of the month. that's the long range outlook right now. we could get a january thaw. should that time its way towards the super bowl, i think that would be interesting. >> and, jim, we like to say -- we like -- if we get a crippling storm in new jersey, the super bowl will be affected because it's really not in new york. i know a lot of new york sent rick people -- >> you got me, brother. you got me there. >> we'll see with all the flack. thank you. >> go warm up. >> my pleasure. >> you've got to get kudos for -- he's going to get kudos for handling this. i hear it's down to the blacktop

in new york. >> that is not true. i was just there. >> he's going to get kudos. this was not like -- >> this morning, the radio was complaining because at 4:30 they were saying new york city schools will be open this morning because they haven't bothered to cancel them yet. >> they have canceled them, haven't they? >> they canceled them at about 5:00 this morning. >> what you're going to hear is progressive can -- it's not all obama care. they can manage situations. that is the first thing you hear. remember bloomberg kind of blind-sided him. >> he will be clearing side streets before he gets to the fdr. >> progressive is better at managing through snow than the business oriented -- i can't wait to get to our ceo piece. let's get to this. >> i can't wait until you get your coffee. >> i'm not complaining. in market news, activist investor and hedge fund manager

dan loeb beat most of his rivals last year. his flagship fund returning 25.2%. wow. he kept pace with the index for only two and 20. loeb said the bulk on his debt are on large u.s. stocks opinion expected to give more details when he releases his fourth quarter letter. give me just a second. he releases that letter to investors in the next few weeks. there's no sweetener in there. thank you. >> there's no sweetener. >> i think i need a -- yes, please. >> i'm calling my agent. >> i'm getting the swede ner because i want to get a coffee, too. go for it. >> there's no sweetener, mac? seriously? no, wait a minute. what is that, sweet and -- no, no, i need equal. no, i'm kidding. that's swimming with sharks. great. whatever the guy brings them, he

needs the other. >> joe, i can help you. >> thank you. >> do you want some equal? >> no, i'm fine. i'm kidding. >> here is some equal. here you go. >> i'm going to mix and match. lovely. sorry. a watchdog for the labor department says the agency needs to improve how it releases the jobs data. labor should either tighten the procedures that it used to release market sensitive data to the media or scrap them altogether and then distranscript the data directly to the public the. a panel was reviewing the process in an effort to prevent the possibility that some investors could have an unfair advantage if they got that data first, which is always -- always something that you don't want to happen. do you have a preference? >> theaters have gotten faster. i just drink hot water right now with lemon. very good. >> no, so you don't care, splenda, equal? >> i don't use any sweetener. >> how about you? >> no sweetener.

>> okay. >> sissy. let's check on the markets this morning. if you take a look at the futures, you will see they are indicated higher. this comes after a pretty poor performance. yesterday, the dow was down 135 points. the s&p was off by 16 points. this is the first time in six years that stocks fell on the first trading day of the year. this morning been you see the futures are higher. dow up by 26 points above fair value. s&p up by 11.8. oil prices, as joe was talking about, oil fell 0.32%. this morning, it's down another 16 cents. that death cross is what people were blaming it on. i don't think this is the story we're going to be talking about next week. but you can see right now, crude oil are at 95.29. >> then again, we're due. '08 was a bad year, wasn't it? >> yeah. but there was a reason for that. that was the recession and people stopped -- >> if the market goes down first in anticipating something that is coming. >> do you think the economy is

taking a turn for the worst? >> i hope not. i hope not. that would certainly be out of the consensus. but we've made that point before. >> it may not be that people aren't worried the economy is going to recover. it may be that the markets run up so much that it doesn't make sense. >> that's the wedge, the fed wedge. >> is that what's going on here? >> what are you looking for? >> i'm looking for a stirrer. ats service here. >> high maintenance. >> you know who we need now? cramer. i've seen he is at the beck and call of people -- >> you're going to go there, aren't you? >> i'm going to go there. >> nightmare customer, look out, jim. >> just faking, jim? >> joe, turn around. look at the service you're getting. >> thank you. thanks, mac. was this over there? >> no. >> where did you get it? >> from the garbage can. thank you. all right. >> the ten-year note yesterday started the year at a 2 1/2 year high. it remained around 3% for most

of the session. this morning, it's sitting just below that at 2.992%. the dollar was better across the board. it's up against against the euro at 1.3647. it's down against the yen at 104.44. it's down against the pound, too. gold prices rallied nearly 2% yesterday, the biggest gain in three weeks. that came after it posted its worst year in 32 years for gold. this morning, it is up by about $36. 1,231.90. growth in china's services sector fell to a four-month low in december. business expectations dropped. now we get to london and ross westgate and, ross, we're complaining about the cold here. how are you feeling this morning? we're okay. we're a little wet in the uk. we have storms coming in with high tides and a risk of flooding. but we used a bit of rain, as you know here in london, becky.

meanwhile, lightly warmer. we're weighted to the upside, a little bit more than seven to three, advancers outpacing decliners on the dow jones stoxx 600. translating into slower gains this morning. the ftse 1 00 currently not doing too badly. just off 0.1%. the standout stock is next. sales up nearly 12%. november the 1st to december the 24th. they've raised the annual profit forecast, as well. next step stock up 8.5% this morning. xetra dax and the cac 40 up 0.25% each. and the ibex up 0.4%. while that is done, it has pushed the spread between spanish debt and german bunch to

under 200 basis points. it's the first time we've seen that since mid 2011. there will be some debate about what happens as u.s. yields continue to rise about what happens to this space. but below 4%, that's helped out italy, as well. we have quite a lot of data out of the uk, as well. gilt yields still above 3%. uk mortgage approval up at a five-year high. house prices, according to the nationwide building society, up 8. 4/% year on year. but there was a big drop in lending to large firms, down 4.7 billion, which the bank of england has yesterday to explain. so we'll see whether that maintains a train, as well, into next year. there is a lot of wind and rain and risk of flooding, as well.

that's what we've got. back to you guys. >> okay, ross. thank you. we're all right. once you're here, it's fine, right? >> yeah. >> not a lot of snow. >> yeah, now. >> you get more rain, right, in the -- on -- >> yeah. >> in the uk, yeah. okay. kind of fun. you have to watch simon's thing, ross. >> let's sing the american dream. >> it's also a better place. it's nice. it's inspirational. maybe some day, ross, if all your dreams come true, you might be able to come over here for more than just a visit. coming up, you have to tune into this to see if we say something that ends up having one of us fired. why a good looking ceo could mean bigger returns for your portfolio. i'm going to let you handle

this. >> i'm ready. >> and the person they mention here is marissa mayer. >> i'm very excited to talk about this. >> this is absurd. it's totally inappropriate. >> there's nothing inappropriate about it. >> okay. fine. you handle it. first, on squawk sports news, this was -- i'm really happy about this. i don't know why. i guess maybe there's too much alabama, too much s.e.c., but oklahoma, 11th ranked oklahoma defeated number three, alabama. that makes us happy that auburn won and is going to face florida state because maybe alabama isn't as good as we thought. trevor knight completed 32 of 44 passes for 348 yards, 4 touchdowns, a.j. mckaren threw for 387 yards and two tds. but he had two interceptions, and lost a fumble that was returned for a touchdown in the closing seconds. so here we go. oklahoma. ♪ [ male announcer ] this is the story of the little room over the pizza place at 315 chestnut street.

the modest first floor bedroom in tallinn, estonia and the dusty basement at 1406 35th street. it is the story of the old dining room table at 25th and hoffman avenue. the southbound bus barreling down i-95. ...and the second floor above the strip mall at roble and el camino. ♪ this magic moment it is the story of where every great idea begins. ♪ so different and so new where those with endless vision and an equal amount of audaciousness believed they had the power to do more. time and time again. ♪ and then, it happened at dell, we're honored to be part of some of the world's great stories. stories that began much the same way ours did. in a little dorm room -- # 2713. ♪ this magic moment ♪

welcome back, everybody. it's time for the executive edge. if you want bigger returns, maybe you should look for a good looking ceo. better returns on their first days on the job and they boost stock performance when they appear to television according to a report. two economists at the university of wisconsin rated 2 attractiveness of 677 ceos from

s&p 500 companies based on facial geometry. i don't know, guys, what do you think? >> so, joe doesn't -- you don't want to go there. >> i'll go only go one place. i know this to be true in the case of brian roberts and steve burke. that's all i'm really willing to -- >> very handsome men. >> yeah. all the way down through the entire organization, hoffman and pat, all of them. extremely attractive. >> and very symmetrical. >> perfect. and one other guy that we always mention, lundgren. >> i was going to say lundgren. >> but how do you explain jack welch? just kidding, jack. we love you. we love you. the greatest ceo of all times, not exactly george clooney, but he has his own appeal. >> you know what it is? the patient sympathy etry, like angelina jolie has a really

symmetrical face. >> she's not a ceo. >> no, but it's -- >> i don't think brad pitt would be a very good ceo. >> no. but the point is, historically we've elected people who are attractive. >> we elect people who are tall. >> we elect people who are tall, who have hair. and part of it is that they are as a result of whatever this attraction level is are better salesmen, therefore better able to persuade the organization to do what they're supposed to do. >> you have to write your column. >> persuading investors. but is that just saying we're all stupid for falling for it? >> i think it's a little bit of that, but i thought the larger issue was if they were attractive, therefore, they were able to persuade their own teams to do better, therefore the company would do better and the stock would do better. >> i think it's a scam. >> it's really kind of stupid and kind of inappropriate. >> i don't think -- >> i'm not even comfortable

talking about, like, lady coes and whether they're good looking or not. >> do you want to talk about marissa mayer for a second? >> no, i don't. you can. >> she was raised in the study. i wasn't going to show the picture of her this way. >> cheryl sandberg is attractive. >> cheryl sandberg. >> are you going to mention great lady ceos that aren't attractive in your eyes? >> all i'm suggesting is there -- >> they like minefields for us. >> do you think this is -- >> i think it's total bs. >> yes. >> do you think to debunk this study? >> i think it's ridiculous, yeah. i want you to write a column on it, though, and see if you can get fired from some place. you have an editor, though, don't you? >> i do, but that hasn't stopped me before. >> i thought bossty was good looking. >> he's a handsome man. >> i'm willing to go to the guys.

>> you don't want to talk about -- >> i don't want to say something hurtful. i can needle some of the guys i know. and i needled -- >> becky, where do you stand on this? >> i think it's stupid. >> we have proved that good looking anchor people are really important, cheers. and we've got a lock on that or what? >> we've got becky. that's what we have. >> let's move on. the next story is ride service uber. it's fighting back against social media outrage over pricing policies. ahead of new year's eve, the company's ceo addressed perspective customers and said if you absolutely need a ride between 11:00 and 3:00 a.m., uber will be r liable, but it will be a pricey ride and you have to accept that. fares result sometimes eight times higher than possible. uber has entered more than 60 markets from its hometown to

berlin to tokyo. but, guys, the question is should you have market pricing when more people want a cab, should you be willing to pay more? i'd say sure. >> yeah. otherwise, if they hold the prices down, there won't be anyone to pick you up. >> there's market prices on airlines, market prices on hotels. could you have got uber today? >> you could have gotten uber today. the reason nobody complained on new year's eve, so many cars were out in force and maybe this is a function of the pricing, they were expecting surge pricing so they were going to get higher fares. that it created more supply and the demand didn't keep up with it so the max on some of the uber surges, if you will, were three to four times. this is what one of the drivers was telling me. >> to me, it's all fair game because it's not like you don't find out about this in advance. they tell you well in advance the surge pricing is in effect. if you don't want it, wait for a cab.

>> but an airline or a hotel at some point says, you know what? we're out of rooms, we're out of seats, we're done. i think that's okay. i think the idea of -- >> but on the way up, you'd probably pay a lot more for it. on the way up, you pay a lot more for those last hotel rooms. trust me, i know because i'm booking a vacation to go away over a holiday weekend and i am paying a lot more for everything we're doing. >> hold on, not 10 and 15 times the minimum. >> but you either believe they're compressing or you don't. >> there was a tweet by jerry seinfeld's wife. i don't know if you saw this. she had gone -- in that storm a couple weeks ago, she had gone to pick up her daughter or one of her children from a bar mitzvah or something, and she did it on uber and it costs $450. she wrote oh, my god, never again. >> did she know before she got in the car? >> they don't tell you you the price. they tell you two times, three times -- >> you don't have someone that

gouges you and charge the market price. you have to assume that it's the market price. but it's hard to not gouge. >> at some point, it can't be that you can charge people 20 times what it is. it doesn't make sense. i say you can go three, four, five times, but -- >> jerry seinfeld's wife says she's never doing it again. if it becomes outrageous, there will be enough people who will say i will never do this again and it will shut them down. >> this is true. at some point, i think there should be a plaques on how they're -- and if there's no cars available, there's no cars available. that to me is maybe a better alternative than -- and by the way, better for drivers. i talk to drivers who say when they're at these high surge prices, oftentimes they're riding around empty because they need to be available to all the people willing to pay the prices. >> if they're charging above what people will pay for it, if that's the case, uber will suffer. they'll be the ones who bear the

consequences. >> when there's surge pricing, do you think that uber, the company, should share more of the profits with the drivers? >> how much do they share? >> it's 20% across the board. if you're the drivers, you pay 20% to uber, no matter what the price is. >> those to me sound like they are glitches along the way. if it huts uber, they will change their structure. >> i just think uber needs to be clear that the reason they're doing is to have cars on the road. as oppose dollars to we're going to have more cars on the road because of higher prices. >> it's a pretty interesting study in economics in supply and demand. >> you have to make sure that it's -- you know, whenever we talk about pure supply and demand, if there's stuff that's influencing it one way or

another, then it really isn't. and, you know -- >> look, i used uber yesterday. i love uber, but there are times when the price is a little much. >> and my guess is if you feel that way, then it's probably a major portions of their clientele feel that way. >> i wouldn't assume that, that everybody is as cheap as andrew. >> well, look, that's when i jump on the subway. >> i think that's the biggest stretch we've made this morning. >> thank you. >> frugal. >> just like mitt romney. >> just like mitt romney. >> yeah. >> frugality is a good thing, not wasting. that's a about quality. >> not going to say anything about nick, no comments on santa, just keep it on the straight and narrow. >> yes. >> marissa mayer, let's go on to our break, becky, quick. when we come back, whether you are thrilled with the returns or wondering what went

wrong, we are ready to help make sure that 2014 is a profitable year for you. we've got market ideas when we come back. plus, the latest on the winter storm slamming much of the country. jackie joins from boston. >> good morning, everyone.it is a winter wonderland here, but i can tell you that it is not a pleasant winter wonderland to be in because it is so cold here. it is 4 degrees is what our car says it is, but it feels a lot colder because of the win. the plaza where i'm at right now, this is always a wind tunnel and today is no exception, especially with this arctic chill we're dealing with. we got, you know, a few inches of snow here, up to a foot in the boston area. it's hard to tell because it's been drifting so much and there's so much plowing going on. but i can show you what the snow is like. and it's this powdery snow. you can't even make a snowball with it, really, because it's so dry out here. that's the conditions we're dealing with. so as people get ready to go out

to hurt, the governor has said, people, don't go to work if you don't have to. don't get on the roads if you don't have to. plows are doing a good job to clean up as much as they can. but the fact is the snow is still coming down. it's expected to do that until about noon. it will be a lot of work ahead. the roads are okay now just because there's not many people out there. but once you throw a few cars out there and get a few accidents, that's going to become a real nightmare. so basically, there's really nothing going on right now other than people trying to stay warm. jackie bruno, live in boston for cnbc. there will be more cnbc coming up. velocity 1,200 feet per second. [ man #2 ] your looking great to us, eagle. ♪ 2,000 feet. still looking very good. 1,400 feet. ♪ [ male announcer ] funny thing happens when you shoot for the moon. ahh, that's affirmative. [ male announcer ] you get there. you're a go for landing, over. [ male announcer ] the all new cadillac cts,

the 2014 motor trend car of the year. welcome back. how is everything?

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stocksic kicking off the new year with losses. joining us now is david burson, former chief economist at fannie mae and david kronk. wells fargo private bank. darrel, what do you think is going to happen this year? >> becky, i think when you look at where we are in the cycle, a lot of people think we're trending to the mid point in the cycle. when you look at the data suggesting volatility was low last year, confidence was increasing. we're at about a six-year high on consumer confidence. what typically happens is the macro market risks dissipate and the fundamentals take over. and that's really great for us as investment people because we think that that is going to lead to a pretty strong year still. >> you know, henry laid out the reasons that we could see a crash at some point. he admits that nobody can predict these things for sure. but he looks at the valuation by three measures and says things are starting to look expensive. one of them is that long-term

p/e ratio, if you get rid of some of the cyclicatlities. >> we have come a long way quickly. you go back through 2012 up through today. markets are up about 40% on today on a large company. i don't think we're pushing overvaluations at this point. i think we're fairly valued, maybe slightly trending towards a little expensive. but what people make the mistake of is they look at the market multiple at 15 times, 16 times. the market rarely trades at the fair market multiple. it's generally trending from cheap to expensive or expensive to cheap and it looks like we're still trending from cheap to expensive at this point. we're not there yet. i think there's room for 2014. the other point i'd make there is when you look at the sectors, becky, you can't look at all of them being equal. if you look at sectors like energy, telecom, industrials,

almost all of their growth in 2013 and prior was through earnings growth and not through multiple expansion. so you have to get into the fundamentals. >> that's a good point, too. david, if you take a look at it, part of what darrel is saying is the economic fundamentals take up at this point and take over. do you think that's going to happen in 2014? >> i think that's exactly right. if you look at where we are in the business cycle, it's been a slow expansion so far. that means, i think, that there's a lot more to go. as darrel said, we're maybe halfway through. we've had four years of expansion, can we get another four? i think we certainly could. >> part of the concern people have started raising, though, too, david, is what happens to things like the housing market? it's been recovering, but as you start to see treasuries move up, that's going to make mortgages more expensive. in the past that has cut into the recovery. do you think that happens this time around? >> i think it will cut into the recovery. the job market is picking up and if you look at all the things that affect housing demand, jobs are the most important thing. people are always willing to buy

houses, even if it's expensive to finance them as long as they feel confident about the job and income earnings prospects. >> well, is that going to happen? jobs have been a huge picture. we may be looking at the unemployment, the official unemployment rate falling to 7%, but there is a lot of unrest out there. >> there is unrest. most economists look at the payroll numbers. those had been picking up. i think it's expected that they'll pick up more next year. we certainly think it will. we think payroll employment is going to average over 200,000 a month. >> darrel, you talked about the sectors that you like. if there's a couple of stocks that you think are the best ones to get into. what would you tell people? >> i usually leave the stocks to our good analysts that do the work. what we really like right now are the technology sector and the industrial sector. both tend to do well in a rising interest rate environment. both have significant exposure to the foreign markets. so as europe, japan recover as well as the emerging markets stabilized, that bodes well for them. and in particular, like

technology has more carve cash on the balance sheet than debt. from a valuation standpoint, they trade at a roughly market multiple. historically, tech has traded at about a 20% premium. when you look at industrials, you know the confluence. you get the cheap energy, you get the collapse of the emerging market wages from the developed market wages. the other point i'd make, also, is just when we're looking at q4 gdp growth, which we won't see the first release until january 30th, it looks like it has an upward bias to it at this point. the ism number yesterday at 57 along with the consumer spending numbers is consistent with a strong gdp growth number for q4. i think there could be some up side surprise there, as well, becky. >> thank you for joining us today. thank you for coming in. >> thank you. we're going to transition from football soon to march madness. >> yes. >> so arizona is number one.

played washington state yesterday. i saw it go by on our on ticker. 60-25. >> what? >> the lowest in history. that's a record low. >> how did that happen? >> they didn't have one of their starters and arizona's defense is amazing. but held the cougars to 25 points. anyway, coming up, a major dealing in the world of cyber security. looked like a football score almost. and then later, the state of the american economy, courtesy of the man who makes the official calls on recessiones and expansions. nber president james poterba will be our newsmaker at 8:00 eastern. i have an associate that met with, uh, an unfortunate accident. while he's been incapacitated, somebody's been paying him cash. now, is this your doing? aflac? now, if i met with some such accident, would aflac pay me? ♪ nice. this is your stop. [ male announcer ] find out what aflac can do for you and your family... aflac? [ male announcer ] ...at aflac.com.

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target to snapshot information being stolen, hardly a day goes by without troubling news in the story. we're going to talk to two of the nation's most respected cyber security company. later, juicing is becoming a trend. the ceo of jamba juice will join us at 7:00 a.m. eastern.time. al off roble avenue. ♪ this magic moment it is the story of where every great idea begins. and of those who believed they had the power to do more. dell is honored to be part of some of the world's great stories. that began much the same way ours did. in a little dorm room -- 2713. ♪ this magic moment ♪ [ male announcer ] even more impressive than the research this man has at his disposal is how he puts it to work for his clients. morning. morning. thanks for meeting so early. come on in. [ male announcer ] it's how edward jones

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welcome back to "squawk box" on this snowy friday morning.

global network security firm fire eye acquiring mandian. you may remember, the company that exposed one of china's cyber espionage units last year. joining us to talk about is dave dewalt. and the former ceo of mandian, now c.o.o. of the combined company. congratulations, guys. >> thank you so much. >> i want to get into the security issues, but give us an explanation of what this transaction does. . >> well, maybe i'll start, kevin, and you can add on, if you like. you mentioned at the outset there this is sort of a perfect combination. and we see as very complementary. network security products coming from fireeye. >> and what does it mean for those uninitiated here including myself?

>> sure, end points are things like your microsoft pcs as well as your apple mcintosh computers. a nice combination between the two. >> and how much of the combination is about the software? and how much is it about the consulting services to businesses? >> well, i think you've got to have both. i think when you look at the complex threats people are dealing with nowadays, you used to have what i called attractive nuisances in the 90s. but the attacks people are suffering today are almost like being sucker punched in cyber space. you need the expertise to really respond to the complex attacks that we're dealing with. >> what are you worried about most? i don't want you to give me -- maybe a view of the world, but what is the greatest threat right now? sort of play out the permutations for us.

>> sure. well, i can tell you this, wherever there's conflict, there'll be a cyber component to it. if there's an ideological difference between the east and west or between terrorist groups and economic western power, you're going to see a cyber component to that. and we're going to have to deal with that cyber component. and whatever it is, it'll be destructive. right now we're dealing the intellectual property, credit card numbers. but the things we worry about in the security industry are the attacks more nefarious meant to disrupt business and disrupt, perhaps, electric grids. >> and that's what i worry about. electric grids. i think to myself at this point, if google's gmail went down for not ten minutes, but ten days, what that would do to certain businesses and economies to actually take a bank literally offline. are those things that you suspect are realistic in this environment? >> well, i think it's possible, but i think it's also something that first, companies do a very good job of protecting the

electric grid. it's not going to be a simple endeavor to do. and when you do destructive acts like that cyber space that have physical impact, the response isn't necessarily going to be in cyberspace in those types of twakts, the deterrent might be something else. >> is the bigger threat external or internal. people look at the target situation and there has been speculation that something on the order of that magnitude had to be an inside job. now, we don't know if it's an inside job, but, you know, when you look at something like that, how do you consider it? >> well, from my experience, an outside job looks like an inside job really fast. the bad guys break in and then they get the credentials user accounts and passwords used by the valid users. your can't really distinguish between an outsider and insider. once they break into your networks. i think that, quite frankly, they're both a threat and you have to be ready for either an inside attack or outside attack. >> hey, dave, before we go really quick, can you tell us,

is there a threat or something that's been stopped that we don't know about? but had we known about it, boy would we really have at different view of what's going on out there? >> well, it actually happens every day, we're seeing quite a few attacks on our infrastructure. and kevin was alluding to some of these inside attacks. but we're seeing a number of them. just yesterday, we saw the syrian electronic army bringing down skype, a lot of infrastructure like that, twitter, the associated press, and some are very successful. sometimes they're not. but there's a lot of very egregious activities happening in the world right now, and yeah. >> guys, thank you very much. congratulations on the deal. hope to talk to you soon. >> thank you. >> thank you. stay warm. we have more of this morning's top stories. plus, the latest on the winter storm slamming millions in the northeast today. the forecast from the weather channel still ahead. and preparing your portfolio for the new year.

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welcome back to "squawk box." a cold front for the financial capital of the world. a cold front for stocks. our guest host will give us their weather forecast for the markets. the auto sector in overdrive. >> you're not on fire. >> not on fire. >> december sales figures about to hit the street. can the automakers and consumers keep up the pace? thinking about getting healthy for 2014? >> need a little wind here. >> no, you need to drop a couple

hundred pounds, blimp. >> jamba juice is way ahead of you and the ceo is taking the "squawk" ceo call. conquer the morning, conquer the day. >> i clap my hands and say this is going to be a great day. >> "squawk box" begins right now. good morning and welcome back to "squawk box" on cnbc. i'm andrew ross sorkin along with joe kernan and becky quick. overnight, snowstorm shutting down roads, canceling flights, closing schools. and some areas are expecting up to 2 feet of powder. but the problem isn't just snow, it's wind and it is cold temperatures across the northeast will dip into the teens with windchills down to 30 below zero. we're going to have a live report just a little bit from the weather channel's jim

cantore in boston in a minute. but in the meantime, take a quick look at the futures see how things are setting up on this snowy friday morning. dow looks like it would open up higher after a tough day yesterday. nasdaq up about a point and a half and the s&p 500 up about a point and a half, as well. thursday marked the first time stocks had a losing first trading session of the year since 2008. >> that snowy friday morning's working for you, isn't it? >> like carl. >> or brian williams. is it a snowy friday morning? >> snowy friday morning. >> very anchor. do you think -- >> have you seen "anchorman"? >> i saw the first one. i thought it blew. >> you're wearing jeans? >> can we do this on friday? >> i say we do it every friday. >> could we get away with that? >> and you're wearing sneakers. >> earlier you said i look good in them jeans. >> very handsome for a friday morning. >> i've got the sneakers. >> and i've got the sweater. and we've got --

>> this friday morning. where's the ten-year on this snowy friday morning? >> let me tell you where that is. throw that across the screen for a quick sec. a little over three, up slightly. also headlines to bring you this morning on this snowy friday morning. we're going to see how the nation's automakers did in december, this morning, with the release of last month's u.s. sales. estimates that sales were up 5.2% from december 2012. boeing machine also taking a second vote after rejecting it by a wide margin back in november. boeing had said if the contract is approved, it would locate production for its 777x in washington state and will seek other locations if it's not. and the watchdog unit says the procedure used to release economic data should either be changed or scrapped altogether. at issue is the so-called lock-up process, weekly jobless

claims or the jobs report. there's been concern among some traders gaining an advantage through the use of computerized techniques and this is when steve liesman or hampton pearson or all of these guys are locked in this room. >> and they try not to twitch. >> i don't believe the information's getting out from the room, but through super computers faster when they leave the room. isn't that's what's happening? >> different parts of the government have different systems. so some rooms are an actual lockup and you can't leave the room and all the computers are controlled centrally. but other parts of the government do it different ways. and i think in the case of the weekly jobless claims data, it's not as locked down as some of the other data. >> it's like the monthly jobless report. >> rebecca patterson, by the way, everybody. formal introduction, but thank you for being here and giving us a little bit of detail. and barry knapp is our guest host. >> you guys made it in today, we appreciate it. >> yeah. put on the snow shoes and slushed on in. it was fine. >> the drive was nothing

compared to going across veil pass. >> yeah, you came in right next to short hill. >> we got 30 inches of snow right before christmas in colorado. >> this is nothing. >> i'm fascinated with this. no one can see these, really? no one can see these? so i could get away with this, you think, on fridays? >> and the sneakers. >> the sneakers i wore in big boots. and i had these sneakers sent to me. they got warren buffett, his picture on it and -- >> the berke sneakers. >> yeah. i never wore them but war them now. >> you could have a chapter in your book of casual friday, right? >> yeah. >> he did not want casual friday but the board voted 18-1 with him being the one vote against back in '99. and after 9/11, the vote and we went back to no more casual fridays.

>> how would you feel? would you do no ties and sneakers? >> i would definitely do no tie. >> no tie? >> no tie every day. >> i worked at lehman too long. >> yeah, this has been 30 years. >> and we discovered if you just have the loose tie, it doesn't look right. >> i used to think like, oh, i'm working really hard. looks like you've been drinking really hard. someone told me that. you don't look like you're working hard. but i'm ready to do this if you think we can -- do you think? >> i think it's okay. we may have to change the sweater of the month thing to the sweater of friday. >> i'm not going to wear the sweater thing. >> it's cold in here a little bit. >> okay. all right. >> nippy. >> it's a bit nipply in here. >> from "christmas vacation." >> i knew. >> they were playing it on tnt. >> i watch it every holiday.

>> he's at the counter of the cosmetics. >> talking about things being nippy or nipply, we're getting back to the nasty winter storm hounding the northeast today. the weather channel's jim cantore joins us from boston where it is quite nippy. good morning to you. >> reporter: yeah. that's an understatement. who said it's cold in the studio? this is cold. it's 3 degrees out here. and the windchill is about 25 below. that's cold. guys, i'm really psyched, by the way, for san francisco green bay for two reasons, a, i'm a packers fan. number two, it's going to be about 5 below for that game. now you're teetering on probably the top three or four coldest games ever played outdoors. remember river front a few years back and the ice bowl back in the 60s. we're talking about big-time cold coming in toward green bay.

but with storms like this, big snow in boston. and we have not seen any salt spread at all. what a great view up here, by the way. the roads, they've done a great job keeping up with the snow because it's a light and fluffy snow. what we're worried about, especially with the snow coming down and the winds kicking up, 20 to 30 miles per hour. we very well may see some of the visibilities drop to about zero later on this afternoon. that's what we want people to get aware of. you get out on the roads and get stuck in this stuff. unless you're four layered up, you're not going to be a happy camper. i can tell you that right now being stuck in a snow pile. obviously the city shut down. we've got a very minuscule rush hour here. there's one of the reduced visibilities i was talking about. hoping to get logan back online at about 12:00 today. they ceased operation at about 8:30 last night. wise move. and coming in yesterday from ann

arbor in michigan, we were on final approach and the pilot pulled up because he heard a report before we landed in boston that the minimums for braking were very poor. we sat there for a second, scraped the runway, got off the ground and came back. i just made it in here ahead of the storm. needless to say, we are talking about over 2,000 cancellations and delays so far today. and that number only expected to go up. and i have a feeling, guys, if i don't get out of the way, i'm going to be part of that snow pile pretty soon. back to you. >> that's always fun. especially at logan. you think you're coming in and then he pulled up. that makes for a nice flight, jim. >> yes. >> in a snowstorm, all right. >> you know, the only problem with that was they were serving mimosas and i knew i'd have tcoe over here and do live shots. you deal with it. you deal with it, right?

>> i guess. you could have had one, one or two. one or two. >> thank you for putting up with this because you are listening to us complain about not having our coffee, complain about being cold. you're putting in the hard work, we appreciate it. >> i wouldn't have it any other way, guys. >> he gets paid huge dough for this. >> i looked at his twitter profile. he says it's the trip and -- that's what makes it worth it. >> he's the name you expect to hear when you're going to go to. you expect to hear -- or you're hoping you hear him. is. >> hopefully we'll check in with you a little later, too. let's talk about a few other headlines. manhattan apartment sales have hit a fourth quarter records. the number of purchases rose by 27% compared with the same period this year the year before. wealthy international buyers are now competing with new yorkers and that's been really making prices soar. also, limited supply, that's led to buyers making immediate

all-cash offers. the median price jumped 10% from a year ago to $4.9 million. >> after de blasio was elected? >> for a couple of days. $4.9 million, i can't believe that's the median. >> yeah. >> that's up there. >> wow. also, alicia keys and blackberry are parting ways. it's been just one year since the singer and song writer was hired as a global creative director. shortly after she took the job, some tech blogs -- blackberry is retreating from the consumer market to focus on businesses, governments and other large organizations. i'm making the change, guys. i got an iphone. for christmas and i got a mac. >> wow. >> mac pro? >> mac pro. >> that's still here. >> because i -- forgot it -- forgot my christmas presents at

my parents' house. >> by next week, i will have everything all set up. >> that's cold, isn't it? >> that is cold. coaster? >> that's horrible. i'm sorry, i take that back. >> you can talk about the transition. it'll be a great live report. every week you can talk about how it is switching over for all of us who are reluctant switch. >> you're still holding on? >> i'm still holding on. >> but you have an ipad in front of you. >> it's making the switch for everything, for all the e-mails. >> you just carry one. i looked at ways this morning to see what it was going to cost me to see what it's going to cost me to come to work. >> i have to switch. >> can you even get on the internet? >> i can. >> barely. >> no, the ipad is easier. >> it's like having a motorola flip phone. >> in fairness to blackberry, the new blackberries do have internet like the iphone. >> really?

>> yeah, they do. >> to be balanced. >> moving away from the consumer market, they gave up on us. >> they did. >> well, maybe they'll come back. >> makes me feel not bad. >> and i've been using the dictation more. i can almost get every word right. >> oh, that's good. >> you don't even have to. and i can do it quickly and you look at it and it's -- i can't get periods and commas. >> you see some weird things. you see some weird it's dictated so maybe the word -- >> usually he's so nice to me in the e-mails. now i understand. >> it's the wrong words. right. one more story to tell you about, the national retail federation is appealing a $7.3 billion settlement over swipe fees. the deal will not stop fees from soaring in the future. a federal judge approved that settlement between retailers and card giants. retailers accused the card companies of conspiring to fix transaction fees that are charged to stores for handling credit card payments. general mills says original

cheerios are going gmo free. some cheerios will start appearing on shelves soon. the change does not apply to any other flavor such as apple cinnam cinnamon. now the company says it's also using non-gmo corn starch and sugar. >> my sons are breathing a sigh of relief this morning because this is what they have for breakfast. >> let's make sure you don't do any gmo pharmaceuticals or immunotherapies. you know what, what's weird is the same -- you know, the warmest that are the same people with the gmos. they choose which kind of junk science they choose to believe. barry knapp and rebecca patterson will be coming up. we're going to break. we're going to play music. good. let's hear it. there we go.

is that alicia keys? >> see. room over the pizza place at 315 chestnut street. the modest first floor bedroom in tallinn, estonia and the dusty basement at 1406 35th street. it is the story of the old dining room table at 25th and hoffman avenue. the southbound bus barreling down i-95. ...and the second floor above the strip mall at roble and el camino. ♪ this magic moment it is the story of where every great idea begins. ♪ so different and so new where those with endless vision and an equal amount of audaciousness believed they had the power to do more. time and time again. ♪ and then, it happened at dell, we're honored to be part of some of the world's great stories. stories that began much the same way ours did. in a little dorm room -- # 2713. ♪ this magic moment ♪

the stock market soared to new heights in 2013. but whether you missed the rally or raked in major profits, where should you be now? let's get to our guest host this morning, barry knapp and rebecca patterson. i'm going to start with you,

barry, because i remember, you got less bullish mid-year, didn't you? >> yeah, through the middle of the year, we thought there would be a period of consolidation, a pullback related to the fed policy normalization. >> you never had an 1850 target? >> we had an 1,800 target. the day that the fed decided to not taper in september, we knew that the set-up for the back half of the year, the final quarter was incredibly bullish. so i changed the price target. >> you did. >> from 1600 to 1800. >> i could name guys, they haven't been back on the show, but i can name guys that a year and a half ago were saying don't informs, don't put money in, there's got to be a correction. don't do it now. they never switch. they missed 30%, probably. 35% and never switched. >> look. either we were going to have another recession back in the summer of '10 or '11 or we weren't. and i never believed we were, in the summer of '11, looked like

consumption was accelerating. >> what's your target for the end of next year? >> 1,900. >> that's 3%. >> it was about 8% from when we set it back in the beginning of november. but i think the broader -- >> will you change that? it's only january 2nd, 3rd. >> i think the broader point is -- first of all, what should happen next year, correlation should fall even further, right? correlation came down a lot last year. >> what do you mean? >> essentially, the value to picking stocks or sectors or industries should go up a lot. >> okay. >> and the divergence between those sectors should go up a lot. what we got right last year in particular was at the beginning of the year we thought, okay, we're faced with all this fiscal drag, the big tax hikes, focus on stocks with bond-like characteristics. that worked great for the first quarter of the year. became apparent that the economy was warding off the tax hikes, we started to shift towards global growth capital spending sensitive sectors and went all in tech and industrials. >> all right.

that's what worked through the back half of the year. >> we haven't got that much time. we're going to get a quick comment from rebecca and come back to you. do you do targets? did you have a target at the beginning of the year? >> that's one of the beautiful things not being on the sell side, i don't have to have a target. we've been overweight equities for over a year. we didn't get cautious -- >> where were you the previous three years when it was going up from 666? >> we were closer to neutral. remember, two years ago, if you put money into high-yield credit, you made the same return as equities. last year, at the beginning of the year, we shifted out of credit. we added to our equity overweight during the course of the year and we're sticking with our position now. we have sizable overweight to equities. i think if people haven't participated yet, it's not too late. but i would say, the one thing everyone is convinced today, just put your in s&p and you're

done. i think that's ridiculous. >> yeah. this is a broader point. >> yeah. >> you're going to have to be in the right sectors, the right part of what this expansion is going to be about. and i think it's going to be about capital spending, it's going to be about the industrial side. >> you've got to start like ranting about how the best hedge fund guy still underperformed the averages. that is pathetic that we're bragging about 25%. an etf or mutual fund would have been -- >> if the hedge funds are doing their job right, you're getting that return with about 6% of the volatility of the market. >> hopefully -- from stock pickers, we always hear, oh, well, it's going to be a stock picker's market because they're selling their own skills instead of index funds. hopefully you're right and there'll be value added to get -- when they could have stayed in the arranges and done even better. get on this. >> there is a little bit of

mitigating the risk. got to be part of it. >> buffett's point has always been -- >> the counterfactual. it might have been 2 and 20, no way it's worth that. >> when we come back the holidays are behind us. that means it's time for the nation's retailers to ring up their results and lock ahead to the new year. we'll do the same and talk winners and losers. [ male announcer ] this store knows how to handle a saturday crowd. ♪ [ male announcer ] the parking lot helps by letting us know who's coming.

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welcome back, everybody. brick and mortar stores are continuing to make their foray into the online space. which retailers are winning big on the web? it really seemed like last year was the year for online retailers. if you weren't online and if you weren't online in a big way it started to affect you last year, right? >> absolutely. this holiday was a photo finish between santa and the grinch. and all came down to ecommerce, ended up saving the day. if you're not focused on that for 2014, you could be left off this train. it's left off the station. >> who were the best at it? which of the big-box retailers? >> hands down nordstrom. they are the gold standard right now in this integration between technology and retail. they were doing omnichannel well

before most other retailers started to coin the phrase. they've been working on this project for a very long time. it's cost a lot of dough. and it's taken a lot of time. but in the end, they're going to win by taking up share. we're very favorable in nordstrom's. >> just from the number of retailers i shopped at, seems like macy's did a good job with it. they have their shipping things ready to go and have for a long time. but both stuck out to me as companies who it feels like a seamless process. >> customer service never goes out of style. and these guys have a relentless pursuit of customer service both online and offline. so we think that really watch nordstrom, they're the gold standard. >> one of the big problems, though, were people who didn't get their packages on time who felt they got burned by this whole situation. and part of that was u.p.s., fedex, and part was the weather. anything to do to try to combat that? >> well, just getting ahead of it and reminding people, maybe

actually personalizing some of those gift lists heading into next year, which you can do more and more with big data every day. let's face it, the u.s. consumer procrastinated and dragged their feet. the average guarantee -- >> they did it. there were a lot of people who were promised those things would get there by christmas eve. they bought them by the 18th, maybe even sooner and didn't show up on time. how do you fight that? >> absolutely. it's true, but something retailers could hopefully use to their advantage because ultimately you can buy online and pick up in stores for a lot of retailers, as well. that instant gratification and guarantee is there. >> why not just go to the store and buy it? >> absolutely. >> okay. thank you. >> thank you. >> absolutely. coming up, 2013 was a record year for auto sales. the final december numbers due this morning. we're going to ask how the industry could possibly top the performance in 2014. that's coming up next. hmm, fifteen minutes could save you fifteen percent or more on car insurance. everybody knows that parker.

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welcome back to "squawk box" on a snowy friday, joe.

ron burgundy here. here are some of your top stories on the snow ji friday. cyber security company fireeye has acquired mandiant for about $1 billion. best known for unveiling the chinese military unit that believed to behind a series of hacking attacks. also, facebook is facing a class action lawsuit over claims it monitors users' private messages and sells that data to advertisers. the plaintiffs allege the social networking systematically intercepts private messages to obtain that data and then shares it with marketers. facebook says it believes the allegations are without merit. there was a similar case brought against google with their gmail service. take a look at futures right now on the snowy friday. stocks going up after a tough yesterday. dow looks like 40 points and nasdaq 3 points higher and the s&p 500 would open about 2 1/2 points higher. some parts of massachusetts getting more than a foot of snow

this morning. let's get an update from jackie bruno. good morning, again. >> reporter: good morning. you can see behind me the plows are here, trying to clean up the roads. and we've had a lot of front loaders and people shoveling to make sure sidewalks are okay. there's not a lot of people out here. so really, really popular intersection here in boston. yet, it looks like a ghost town because people are being told to stay inside their homes. don't go to work if you don't have to because it's just frigid out here. more than the snow, we're used to snow, we're hearty new englanders, but we're not used to this kind of snow with arctic chill. in the car, said it was 4 degrees, but feels a lot worse because the windchill is really making it feel like it's well below zero. and it is bitter out here. i mean, bitter. let me show you what the snow looks like because it's really this kind of powdery snow. really can't make a snowball out of it because it's so dry in the area because it's any moisture is being sucked out because of

the arctic chill out there. still snowing, has been snowing since late yesterday afternoon and we got some snow before that. this has been a 36-hour ordeal for this area. and while we'll get through it, we'll handle this, it is very uncomfortable for anybody that has to walk around any time today because we're not getting out of the single digits all day. so a bitter day for bostonians. >> at least it's not going to thaw and freeze. . going to be that powdery snow. >> reporter: that's right. >> it will blow around, though. >> easy to stay from the studio. >> you can't make snowballs. is it good for sledding? but it's too cold to sled today. >> well, if you want to sled, it would be fun to sled, i think thad be great. but if you're going to do that, wear your layers. i have hand warmers and toe warmers in right now. i think that's also crucial, too, because it is bitter out here. >> we need to talk, we're going to davos. get some of those warmer things,

chest warmers, i think, too. awesome. thank you. jim ford and the regm, forde automakers are expected to roll out today. >> overall, the pace is expected to be about 16 million, increase of 4%, compared to earg year ag. the real focus, where did we end the year in terms of overall sales? the low coming in 2009 when it was 10.4 million. when it's all said and done at the end of today, it should be at about 15.6 million as the sales pace, the strongest since 2007. by the way, we're expected to go above 16 million here in the u.s. next year. this month will determine the number one brand for sales in 2013 in the u.s. ford is expected to beat toyota. they've got about a 380,000-vehicle lead. sales topping 2.4 million this year. the other race in the sales industry, the auto sales that people will be looking at.

where a mercedes replace bmw as the top luxury brand in the united states? by the way, mercedes on track for the best years ever with sales topping 300,000 vehicles this year. it's a good reason to celebrate for 2013, they actually picked up market share here in the united states. not a lot. with sales coming in at at about 45.3%. the automakers in the u.s. will be gaining share, really for only the second time in the last 15 years or so. as you take a look at shares for general motors, what will they say on the conference calls regarding the outlook for not only january, but the first half of 2014. again, guys, the expectation in 2014, we see industry sales go above 16 million for the entire year. guys, back to you. >> we never really thought we'd get there again. i guess we should've, though, right, phil? >> the expectation is that we'd eventually get back to where we

are right now. but i think we're almost to the point where we're going to see it plateau here in the 16.2 to 16.7 range for the next foreseeable three or four years. >> what was the low? did we get to ten? >> 10 1/2 back in 2009. and by the way, the high, 17.4 million in 2000. >> 2000? >> that's the all-time high. >> and the mix back then was more -- foreign versus domestic? >> the domestics had a little more market share back then. it was almost 50/50 then. it'll never get back to 50/50. you're looking at close to the high for the domestic automakers here in that 45%. it's probably going to stay around there, might go a little lower, maybe down to 44% to 43%. >> we're going to go, now, but solar powered car, is that ever coming? >> no, no, no, no. >> yesterday -- >> well, the story was that ford was working on this along with a couple other groups, and the

potential in the future for them to potentially tap into solar power as an energy source, that's pretty cool. but, remember, that's what ces is all about, showing possibilities for the future. are we going to see this any time soon? no. >> because, becky, she has had the idea of a wind-powered car with like a -- windmill on the back and it's -- like today might be able to go -- >> a solar-powered car. >> i don't know. >> stuck in a snow bank. >> with us now, he really knows a lot of stuff about this. so to hear it talked about so frivolously. does it bother you, paul? >> where is paul? >> where are you? >> looks very sunny. >> looks like florida. naples. >> i'm happily in naples, florida. but i'm flying to new york today, i think. >> no, you're not. >> challenge. >> wow, paul. i hear 16 million, you knew this

was coming again? i guess all things come back around, don't they? >> well, the economy's recovered. not recovering at the pace we'd like to see unemployment still high. the average age of the cars on the road today is a very high level. the economy's getting better, employment is gaining. so all the factors point in the proper direction. first of all, for detroit, the yen is getting weaker, that lets the japanese price more aggressively. that's going to be a problem for the detroit companies, i think in 2014. the other thing is leadership changes. the ceo of general motors, mark fields at some point, most likely coming in at ford, ceo. and they have great qualifications. but you never really know until they're doing the job. >> mark fields, there's a good-looking ceo. so, yeah, he should be --

>> handsome man. >> we should've known. >> look at why his stock has gone up. >> paul's going, what are they talking about now? there was a story earlier, paul, about good-looking ceos do better -- so fields, he's a shoo-in. >> handsome man. >> yep. i think the shareholders will be interested in other attributes. >> that's what i think. this was a dumb story we did earlier, correlating looks. >> paul, do you think ford shouldn't allow him to let everyone twist in the wind like this? >> well, i'm not sure who's twisting who. whether alan wants to leave or ford wants him to leave. >> you think ford wants him to leave? >> i'm sorry? >> you think ford wants him to leave? i got the sense this came out of microsoft. >> i'm not sure they actually want him to leave. i think they're open to him leaving more than it was six or eight months ago. i think basically they know the transition's coming.

mark fields has proved himself as worthy successor in, you know, in the board's eyes. so i think it's a matter of months now, really. what difference does six months make in something like that? >> paul, are people buying big suburbans still and trucks? is that going to go on forever? these eight cylinder, you know, or is everybody buying smaller, like crossovers? >> one of the untold stories about detroit, i think, is that despite all the emphasis on hybrids and downsizing cars, about 75% of the profits still come from big trucks and suvs in north america. which is pretty remarkable, actually, that's where all the profits are coming from. and, look, you have the fraccing revolution and i don't think gas prices -- they're not going down but they're not going up, so honestly, i think it's one of those things where there's going to be a booming market for big vehicles. and the companies like to sell them because they produce

profits. >> yeah. and, you know, if you have more than two kids or something. you do get one of those second backseats. and i think you're right about that. we've had people coming on and saying that gas prices were going to go up based on the globe recovering. if we go to trucks with natural gas, they're going to migrate that way. the market works that way, doesn't it? >> absolutely. people like the convenience of big trucks and the space and all that. i remember we had one of the first chrysler minivans that came out in 1984. our kids were real little then. it was like having little demilitarized zones so they wouldn't kill each other. >> right. are you still there, phil? >> i am. i love that term. >> demilitarized zones. >> becky has copped to a minivan, which many of us would not do that. >> i used to have one. >> used to was the operative word. did you see with the one with

the vacuum cleaner? >> no. >> one with a built-in vacuum cleaner. >> oh, because you have a husband. a built-in vacuum cleaner. >> that's what i would get. >> yeah. you're a minivan guy. >> i'm looking for a minivan. >> it's a great car. it's like having a driving living room. it's awesome. >> never had one, did you, joe? >> no, shoot me first. >> three children, never had a minivan. >> anyway, lebeau, paul, thank you. >> enjoy the weather. hope you make it back. you should probably be happy you're not making it back at this point. coming up, if one of your resolutions for 2014 is to eat healthier, then jamba juice may have the right stuff. james white's going to tell us about new push for the smoothie. and a wicked commute for many of you on the east coast. but if you have a snow day, stick with "squawk" because we're coming right back. look at that live picture of time square right now. 0

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hewlett packard, and disney both started in garages. mattel started in a garage. ♪ the ramones started in a garage. my point? you never know what kind of greatness can come out of an american garage. introducing the 2014 motor trend car of the year. the all new cadillac cts. ain't garages great? welcome back, everybody. in our headlines today, homeland security agents have seized more than 6,000 pieces of counterfeit hockey merchandise valued at over $73,000.

it was part of an initiative leading up to the winter classic events. >> yeah. >> that was a big deal. >> you watched and loved it. >> i did. and the islanders beat the blackhawks last night. which is not -- that's not -- you don't see that every day, andrew, on a snowy friday morning. >> on a snowy friday morning. >> another story on the snowy friday morning. i don't know if these guys do well on a snowy friday morning. kick off the new year, jamba juice, the new whole food blending and juicing platform, ringing the opening bell at the nasdaq today. part of the nasdaq's third annual fit week. plus jamba juice announcing the expansion into the middle east. good morning to you from a snowy time area. good morning to you. >> good morning, and happy new year. >> i'm a big jamba juice fan, i drink it when i can, but on a snowy day like this, this cannot

be good for business, i'm assuming. >> we entered the new year and everybody's in resolution season. we're blending in more whole fruits and vegetables. and we think it's a perfect time for jamba juice. >> i'm assuming you must do better like ice cream on a hot day, right? >> we do, but if you think about the expanded fresh squeezed juices we're launching, we actually do perfect no matter the weather. especially if the beverages are a part of your healthy diet. >> explain exactly what this new platform is when you talk about whole foods compared to what? what goes on now? and what's changing? >> yeah. so think about our whole food blending and juicing platform is really a bit back to the roots of jamba. we are founded as juice club. and as you look at the coastal trend of juicing as a way to get more whole fruits and vegetables

into your diet, this is really central to the platform. you'll see us blend in items or juice items like kale and beets and cucumber. >> you didn't do that before? >> on a more limited basis. we've always had the broadest fresh squeezed juice platform in the industry and we blended things like whole carrots and oranges and wheat grass, but this is a significant expansion to the offering. >> are you going to get into the cleansing business, you know? we keep having -- we've had a number of people come on that are into literally drinking drinks. breakfast, lunch, dinner, it's sort of a sometimes can be a five or six-bottle a day program. >> i think you'll see us play a part in the juicing rituals is the way i would describe it. lots of consumers, including myself will add healthy juices

as a part of a meal replacement or supplement a healthy diet. >> james, i don't know if you saw this, but they cut the rating to neutral this morning. talking about cooler weather in california, saying that has hurt some of the traffic in the stores. also pointed out that some of the promotions you offered last year like a buy one, get one free for some of the smoothies, you weren't having some of the same promotions. can you address that? >> yeah, i guess a couple points i would make, we are actually pleased with the way we finished the fourth quarter and the full year. we'll report officially our numbers a little bit later in the year for the quarter and the full year. but we're actually pleased with the finish. and i think we're even more excited about the prospects on a go forward basis as we look at the announcement this morning about the entry into the middle east. that brings our pipeline of international locations to 480

if you think about the middle east being added to previously announced markets. mexico, canada, the philippines and south korea. >> when you say middle east, are you all countries in the middle east or certain places you will not open? >> there's a handful of countries. you'll see us open in uae and dubai probably first. bahrain, qatar, there are four or five countries that will open 80 locations over the course of the next ten years or so. >> over the next ten years or so. okay, last and this is a selfish question. just to sort of personal, practical issue. when you drink these drinks, should i consider them a meal? because i -- this is -- they're very caloric, a lot of them. how do you do it? >> i think the way we would have you to think about it. we've got many, many drinks on our menu that would be less than

250 calories. and we also have things more in it. i think it depends, and we've got a solution depending on how you want to use the brand. the idea behind our whole food blending and juicing platform is for folks that are looking for a boost a healthy regiment. there's also offerings like the ones we offer today that we think are a good meal replacement and a healthy start to a weight management regimen. >> are you going to get into the hot beverage business? >> you can expect more to come from us going forward. >> i'd take a hot beverage from jamba juice. like a cider? what do you do? >> ciders and teas and we've done organic coffees. >> okay. we're going to leave it there. good luck, stay warm in time square. >> happy new year. thanks for having me on. >> thank you. >> cleansing. take a lot of -- how many

bottles? >> to wash my hair? >> to cleanse, you don't actually -- you're talking, you're cleansing -- >> you know about that. kenny g. >> i don't cleanse. >> you guys had it on "on the money." what are they called? generation juice. juice generation? >> is it better to cleanse from here? which is the better cleansing alternative? do you cleanse both? >> start at the top and work your way down. >> external -- >> a lot of people think you just go to the source to cleanse. >> no. >> no? >> that'd be one way to do it. >> a lot of people do. they swear by that. >> i think these days people do both. >> that's what i meant. cover all your bases.

>> next, sectors to shake up the new year, plus las vegas is looking to up the ante for tourists and gamblers. jane wells is going to tell us how to do that during the next half hour. ♪ [ male announcer ] this is the story of the little room over the pizza place at 315 chestnut street. the modest first floor bedroom in tallinn, estonia and the dusty basement at 1406 35th street. it is the story of the old dining room table at 25th and hoffman avenue. the southbound bus barreling down i-95. ...and the second floor above the strip mall at roble and el camino. ♪ this magic moment it is the story of where every great idea begins. ♪ so different and so new where those with endless vision and an equal amount of audaciousness believed they had the power to do more. time and time again. ♪ and then, it happened at dell, we're honored to be part of some of the world's great stories.

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welcome back, everybody. let's find out which sectors our guest hosts like and which ones they dislike for the new year. barry knapp is the head of portfolio strategy at barclays.

and, barry, if you had a sector you liked, which would it be? >> the industrial sector. and we do buy into this industrial renaissance of u.s. manufacturing, strong capital spending cycle. additionally, what happened in '94 when the fed started normalizing and, again, in '04, the market told you what was going to work through the cycle, a little bit of the tides going out. you can see who is wearing a bathing suit. in '94, it was tech, in 2004, it was energy. the best performer since the end of april has been the industrial sector. we think that will be probably the best, biggest winner through the whole cycle. >> you're bottoms up, if you had to break it down one way or another, what's something we could look to? >> the one thing i would focus on in the year ahead is staying very cautious and very differentiated on emerging markets. i'm going to take a regional view rather than a sector view. i think despite relatively attractive valuations, they will again this year. a lot of big elections coming up

this year, brazil, india, south africa, a number of those countries, policy uncertainty, inflation staying high. i think growth will be a challenge there. and those markets are going to stay very fragile. you have to be very selective which e.m. you go after. >> fragile five. avoid the fragile five. >> we're going to talk more about this. rebecca and barry with us throughout the show. when we come back, though, a foot of snow is not going to stop economists from gathering to see ben bernanke speak today. james poterba, we'll get the forecast for the economy. this is the guy who officially calls whether we're in a recession or not. also, thousands of flights have been canceled. we'll get an update from jetblue about this weekend's travel conditions. "squawk box" plows ahead right after this. female announcer ] what if the next big thing, isn't a thing at all? it's lots of things. all waking up. connecting to the global phenomenon

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a winter blast for the east coast. a wicked morning commute, thousands of flights canceled. we're going to be getting an update from jetblue c.o.o. >> no snow in vegas, but blizzard of construction. billions of dollars in new projects. and it doesn't matter how cold it gets, investors are

always looking for the next hot stock. >> hey, "squawk box," that's hot. >> we'll get mid and large cap stock picks for 2014 as "squawk box" begins right now. >> welcome back to "squawk box" here on cnbc, first in business worldwide. i'm joe kernan along with becky quick and andrew ross sorkin. rebecca patterson is chief investment officer, that's an old, old name and cnbc contributor. it had something to do with andrew carnegie, didn't it? >> henry phipps, and he sold his share of this deal company and invested that money about 107 years ago. so, yes, the firm's been around a long time. >> and it started -- see, i'd like that. this investment firm came from one guy's money. >> and he did it himself.

>> right. we need to remember that things like that can happen here. $90 billion plus? >> under supervision. >> yep. >> and you're the chief investment officer? >> not like it, i am it. >> you are it. if you don't like someone, you can fire them, basically. if their performance is bad, it's like they're out the door. >> well, people are going to underperform for different parts of cycles. you don't want to fire too quickly. i think we have a great team. i don't see any need to be firing anybody. but in theory, yes, i could. >> and you're a contribute to here, too? >> i am. >> you've got that going for you. barry knapp is head of u.s. equity portfolio strategy at barclays. i have to say really good things about you, too, i think. don't i? >> your call, joe. >> how much is barclays managing in this country, do you think? >> i don't know. >> have you lost some or something? >> no, a lot. i do know that our assets are

bigger than the gdp of great britain. >> there you go. >> which would've meant something as a true superpower. is there even a navy over there? remember the british navy, what happened? >> you do know i'm american, right? >> i do. i do. but you still have to kick the uk butt, don't you? becky has some of our top stories. >> let's start with the futures this morning after thursday's losses. you did see, again, the dow down by about 135 points yesterday. by the way, stocks, this is the first time they've opened down in six years. dow futures up by about 40 points above fair value. s&p futures up by 3 1/2 points. also watching the price of oil this morning. yesterday, it was the so-called death clause came into play. it's a technical issue, that's why traders said you saw that down by about $5 yesterday. big drop yesterday, continuing

today, it's only down by about 2 cents. also, one of america's iconic cereals has jumped into an international controversy. general mills says it'll begin producing cheerios free of genetically modified content. many big food companies have maintained there's no evidence that use of genetically modified content causes health problems. but, still, in this case, general mills has thrown in the towel. no longer. today we'll also be getting the latest sales figures from u.s. automakers. edmonds.com estimates that december sales will be up by 5.2% compared to december of 2012. and we have chrysler results just in. up by 5.7% in december. edmonds.com had projected an 8.3% increase. that is a little below what had been expected. right now, let's get an update from ron mott in boston. good morning. >> reporter: good morning to you. you know, it's hard for me to describe to you how cold it is

here in boston today. it's about three degrees right now with a windchill maybe minus 10 to minus 12. it is very cold. and what this storm proved if anything is that weather forecasting is still very much an art even though there's a lot of science behind it. almost no one predicted this much snow. in boston yesterday, downtown, record 10.6 inches, we think total about 14 inches. we're dealing with about 2 feet of snow. but fortunately, this is light, fluffy stuff. easier to clean up than the storms we saw a couple of weeks ago. downtown, it's almost vacant. a lot of folks staying home. kids off from school. it's a three-day weekend for a lot of folks. they'll spend the week cleaning up in the snow. but this snow packed a good punch. this was a real serious storm here in the boston and northeast area. andrew, back to you. >> thank you for that. stay warm out there. in the meantime, we'll get an update on air traffic. joining us now on the "squawk" news line, the c.o.o. of

jetblue. good morning to you. >> good morning. >> great to have you on. give us a sense from where you stand where the delays are, what kind of cancellations and how long this is going to last. >> well, this is a huge storm for us. our planning began several days ago, monday into tuesday and i think our approach to weather like this is when mother nature's going to win, you let her win. one, we want to secure our assets, really that's our equipment and our people. we want to take really good care of our customers and we want to execute our plan and let customers know what we're doing. broadly speaking, we ceased a majority of our operations by 8:00 p.m. last night and we've got about 50% schedule reduction for all the new york airports and about 100% schedule reduction for all of new england including boston where we're the largest carrier there through about noon today. we'll slowly start up things later this afternoon. there's a lot of delays in the

system. and every storm presents different challenges. this one with the light blowing snow and the freezing temperatures makes de-icing and snow removal very difficult for the airport. >> so flights that are supposed to take off later today have a decent chance of taking off? or most will be delayed? >> our cancellation totals are about 400 right now, andrew. there's going to be some additional cancellations as some airplanes and our crews are in places they don't quite belong in as conditions have changed throughout this storm. i think particularly for this afternoon and evening, i think we may see a lot of delays and extensive delays. but i think we're planning on resuming operations today. >> okay. if i am a customer right now and i'm supposed to be on one of these planes and i need to rebook, what should i do? >> well, you can go online and rebook if you're a jetblue customer. but i think we're very proactive when we do cancel flights. we proactively reach out to customers via e-mail and also phone calls. we have some automation that helps us with that. but we're very proactive in the

event that a flight is canceled. the one thing i would tell customers, though, absolutely check your flight status at jetblue.com. when we get into situations like this, we're the only ones that have all the nonpublic information that really in an event like this. >> what's the nonpublic information? >> you go to a lot of the public websites that probably aggregate a lot of publicly available information like faa data. but an event like this, people don't know where our airplanes are. they don't know if we're going to swap an aircraft for another for a particular flight. so our information is by far the most accurate. >> if i try to rebook and i'm failing, should i call you or not? and if i beg and plead and be very nice, do i get any special attention? >> well, we've got all of our team activated in our call centers ready to receive calls. >> no, he meant you, rob. he did mean you. >> yeah. >> he meant you. >> i'm not traveling this weekend happily. but, rob, really.

sometimes i think, oh, i'm going online, failing miserably, now i'm going to call the line but wait half hour or whatever. is that worth doing? >> i think if you're on a canceled flight. but if there is no change, i'd reserve those phone calls for people that are on canceled flights. i think just being a little patient. this is primarily a returning from holiday vacation issue for us. it may take a little bit longer. >> okay. we're going to let you go. but real quick, you think this is going to run through the weekend, saturday, sunday, those folks who are down in florida, for example, trying to get back by work on monday? still going to have some people struggling? >> i think we'll be running a full schedule by sunday. it'll take us a couple of days to get back to where they should be. >> good luck with what i imagine will be a crazy 24 hours. >> thanks, guys. >> you don't have his phone number. >> i don't. >> you want to ask him that? >> as you know, i don't have any

special treatment. >> you do need to reach out, though. i love jetblue, i'm a huge fan, but we had a situation last week where they changed our flight two months ago and there was no update. we got to an airport and there was no flight and it'd taken out -- you do need to be proactive. >> i'm not going to throw them under the bus. >> you just did. now he can't defend himself. >> no, they did try to make up for it on the plane, we all got free movies. >> there you go. >> andrew's going to be talking to him later today. you can tell him if you want to pass anything along. >> i think it's a great airline. but you can't rely on just them sending stuff to you. you need to reach out. >> when you said call you, some people thought you meant the royal you. you meant -- >> no, i did not. i wanted to know where to call. >> what do you mean? he's chief operating officer. you call him. >> jetblue flies out of newark now, too. >> they don't fly out of --

>> everyone is tweeting the same thing about us going to davos. are you going to give us a ride on our jet? >> are we allowed? >> the flight's full. >> right now, it's what he always tells me. right now, let's get to steve liesman. he's in philadelphia. he once spent -- no, i'm not going to say that. anyway, the american economic association's annual meeting. he's down there, joins us with a special guest in the city of brotherly love on the finest cities in the world. steve? >> yes, on this -- what were you saying earlier? this snowy friday morning. snowy friday morning. and i am with jim poterba. just a quick word on the conference. going to be some 11,000 participants here. 520 presences on everything from productivity to economic growth to health care and aging and all that stuff. jim, thanks for joining us this

morning. >> pleasure to be back. >> you're also professor of economics at m.i.t. jim, give us an overview of where you think we are coming out of this crisis. it's five years since we fell into this hole. and where are we in digging ourselves out right now? >> i think it seems like the u.s. economy in particular is healing. we're beginning to see some real signs of traction both in consumer spending which was strong in the latter half of 2014, starting to see improvements on the fiscal side, our deficit numbers projected at this point are down to under 4% of gdp. and there's a real sense, i think, of optimism in some sectors. the real estate market has begun to bubble back. i think there's going to be a lot of folks when they open their year end e-mails from their retirement plans or from their brokerage accounts who are pleasantly surprised at how much the stock market increase of 2013 has added to their balance sheets. so i think that's going to also give us a little tail wind as we move into the new year. >> it also appears as if from

the federal reserve standpoint but maybe other central banks around the world while we get this better growth, might be a period of tightening when it comes to monetary policy, or at least less stimulus out there. >> i think the way i would characterize it as a move back toward business as usual. one of the challenges we've seen in the last few years is a set of extraordinary policy measures. and as we -- as the reaction to the potential for tapering in the last couple of months has indicated, the markets are waiting for a signal and understanding of when we're moving back to business as usual. not exactly when, but a sign that's something we can begin to do. and i think the very strong favorable reaction to the federal reserve's announcement last month was partly a sigh of relief that we're beginning to move down that path. we're in a period where monetary and fiscal policy is playing a bigger role in determining where the economy is heading than in normal times. and consequently, the role that

the policy makers have and the weight that's placed on their determinations is much greater at this time. >> and it would be better if it was less consequential. >> in normal times, that's not where we are. >> one of the things you look at when you look at this enormous amount of research, it's five years after and they're going to be doing a lot of studying of t.a.r.p. of the fed monetary policy. what are researchers finding in terms of the right thing to do, the wrong thing to do. should it be part of the playbook for the future? >> steve, i would say economics research is a lagging indicator. >> right. >> we're following what the policies did and takes a long time for data to arrive and the research itself to be carried out. i think we're beginning to see studies of microeconomic studies, cash for clunkers or some of the housing policies as well as the macro policies which could take, you know, all of the different kinds of extraordinary monitoring actions we've seen.

and i think, you know, right/wrong is a little difficult to judge based on the kind of studies we're seeing. we're starting to describe, did they matter? did they have consequences? so, for example, cash for clunkers, i think there's now pretty clear evidence compari comparing -- just to give you a sense of how this works. different states within the united states had different pools of vehicles. of eligible for cash for clunkers. you could compare states where folks could take advantage of that program. and you can try to see, does it look as though more new cars purchased? there's clear evidence there were. cash for clunkers did manage to get more people purchasing new cars -- >> pulled forward. >> pulled forward demand. now the tricky question is how far did it pull it? and in that case, the evidence seems to be a few months, within a year, something like that. that may be what you need in the real bottom of the recession. but doesn't look as if it pulled demand from many years into the future. >> and made a long-term difference. you're going to be presenting an important lecture here later

today and aging is one of the concepts you're going to be talking about. and there's a big concern out there. with the aging of the population that asset prices are going to tank because these people are going to move from risky assets to risk-free assets. is that a serious concern that investors should have right now? >> it's a concern i've heard a lot. they're going to flip a switch and move their assets or decide to sell their assets. i'm not particularly concerned about that, steve, for two reasons. one, most of the evidence we have on how investors and savers behave as they move into and through retirement is that they very gradually, if at all, start to draw down their assets especially in the early years of retirement. i don't think there's anything that looks like going across a cliff there. the second thing very important is asset prices are determined. the demand for assets is a global economy. and focusing just on u.s. households and u.s. baby

boomers, i think, especially for global markets, that seems to be a very narrow perspective on that problem. you really need to focus on global demography, on the demand globally for assets. as we look out to the aging and retirement of the baby boomers, 20 to 30 in the u.s. the demand for a lot of the financial assets may have more to do with, you know, growth in china, growth in india. >> the premium on the u.s. to keep its markets to be attractive globally. >> absolutely. >> and the economy to be attractive globally. >> absolutely. >> jim, thanks for joining us today, and hopefully you won't come back to talk about a recession any time soon. >> thank you, steve. coming up, wall street cracking down on cockroaches. we'll explain that story next. then jane wells will tell us about big plans for the strips. as we head to a break, though,

check out some of our lineup for next week. surprises for 2014 and then we've got chicago mayor rahm emanuel and steve forbes. big week for us. "squawk box" coming back right after this. liking your flat rate shipping.y fedex one rate. really makes my life easier. maybe a promotion is in order. good news. i got a new title. and a raise? management couldn't make that happen. [ male announcer ] introducing fedex one rate. simple, flat rate shipping with the reliability of fedex.

welcome back to "squawk box" this morning. making headlines. regulators promising to crack down on what is called cockroaching among financial brokers. forming a group to examine activities of stockbrokers with long track records of violations and investor complaints. cockroaching, in quotes, refers to stockbrokers with troubled records moving from one problem firm to another. >> hmm. >> do we know any? do they show up on our show? i hope not. >> maybe they're in the movie. >> "the wolf of wall street," right? >> actually. >> you're going to go see it. >> cockroach was here, actually. anyway, time for a change of -- chance of scenery. you have to give us a chance of scenery out there. i think we meant change. let's see what jane wells has coming up.

cookies and cream, you and vegas. >> reporter: oh, well, you know, joe, the vegas recovery has been kind of like the u.s. recovery, tepid. but check out that flashing thing behind me. it's new development, the link by caesar's here on the strip. things are warming up. i know you're cold back there, but look at the video of what it's like on the strip, the first week of january '14. more when we come back. ♪ [ male announcer ] this is the story of the little room over the pizza place at 315 chestnut street. the modest first floor bedroom in tallinn, estonia and the dusty basement at 1406 35th street. it is the story of the old dining room table at 25th and hoffman avenue. the southbound bus barreling down i-95. ...and the second floor above the strip mall at roble and el camino. ♪ this magic moment it is the story of where every great idea begins. ♪ so different and so new where those with endless vision

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sin city looking for a turn around. and it's starting with the strip. jane wells joins us now from las vegas. it's like three hours, right? how far was the drive? did you drive? >> reporter: i actually flew. and you know what, the flight from l.a. to vegas the day after new year's was pretty crowded. here's the deal on new year's, early estimates show it was probably flat with last year, about 335,000 people. and while vegas will set a new record for 2013 of nearly 40 million visitors, overall spend is still about .25% below of what it was before the recession. look at what may be the most hopeful sign here in a long time, investment. there are $9 billion worth of

projects underway like the sls, and not far from the still unfinished fountain blue. but most breast intereinteresti company, a multibillion dollar project to take over stalled development that turned it into a major destination for gamers. because las vegas, one of the ways it wants to recover is increase the share of business from international visitors from 17 to 37%. there are more international flights, the airport has a new terminal. bill lerner says macau is helping drive travel here. that sin city is only in the quote first or second inning of attracting visitors from mainland china. now, the largest player, of course, is mgm resorts, but will a new project siphon off players? and is vegas healthy enough yet for more rooms? i jim murren. >> there won't be any new

capacity in 2014 and 2015. it'll start in 2016. at which point i'd expect our occupancy rates would be higher than they are now with better room rates and we'll have about 45 million, 46 million people visiting by that time. i think it'll bring more people -- >> he's not feeling any competition, the heat from anybody coming here at this point. and, in fact, perhaps, the biggest sign that vegas is recovering is that mgm resorts is planning to build on the strip. plans to build an arena that could host an nhl team. 2014, most analysts are saying, guys, slow and steady as she goes. however, later on "squawk on the street," most of the gaming revenue from this town comes from slots and young people aren't that interested in playing them. back to you. >> jane, thank you. when we come back, we're going to try to warm things up with a few hot stock picks. also, jpmorgan's chief

economist, he'll give us his view of the global economy and which regions will take the lead in 2014. right now, though, as we head to a break, take a look at the price of crude oil down sharply yesterday. you can see right now down about 19 cents. 9,525 after settling in $100 before this. "squawk box" will be right back. just by talking to a helmet. it grabbed the patient's record before we even picked him up. it found out the doctor we needed was at st. anne's. wiggle your toes. [ driver ] and it got his okay on treatment from miles away. it even pulled strings with the stoplights. my ambulance talks with smoke alarms and pilots and stadiums. but, of course, it's a good listener too. [ female announcer ] today cisco is connecting the internet of everything. so everything works like never before. [ female announcer ] today cisco is connecting the internet of everything. so ally bank really has no hthat's right, no hidden fees.s? it's just that i'm worried about, you know, "hidden things." ok, why's that? well uhhh...

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welcome back to "squawk box." you've heard about bitcoin and kanye west, but what about coinye west? there's a new digital currency later this month inspired by the musician or singer. but west has no connection to the project. the anonymous creators. >> he's going to want a piece of the action. if you know kanye west. >> i don't think he's a rapper. we had him as a rapper. >> he's a rapper sort of but a businessman is what he is. >> and he reached out. creators began promoting the currency late last year. they say their goal is to set up a more user-friendly version of bitcoin with a relatable face on it. to help users do things like buying concert tickets.

>> there's a whole thing on twitter about celebrity currencies. everyone's trying to make quick money before we figure out who is the winner. >> he thinks he's like steve jobs. >> i know. >> he's upset with nike because nike, they made a shoe and, he can't be thrilled about it. >> he's a little, you know, he does really well. he's a little delusional, he started believing his own stuff. how would you characterize him? >> he's a member of the kardashian family. >> i saw bruce the other day.

>> they're part of the nbc family, so part of my family, as well. >> i was watching a little bit of michael douglas as lee. and he was trying to sleep and his eyes were open. >> as liberace. >> yeah. you know, you get so much work where you can't close your eyes. matt damon's going li, li, you're snoring. and he said, i don't care how bad i look. >> from liberace to -- >> i'm going to keep it real. >> i'm with you. >> you don't want to be ceo that bad. >> i don't want to be ceo that bad. >> from liberace and the kardashians to rick santelli. we're going to see what he's watching in chicago today. no work done, and he looks the better for it. >> totally natural. yeah. >> what's on tap for this -- is it snowing in chicago, too, by the way, rick? >> pardon? >> is it snowing in chicago? we've been doing weather all

morning. >> the snowing is taking a bit of a hiatus. the temperatures dropped, though. when i was driving to the train today, the vehicle before it hit the wind was minus eight and the feel temperature for monday is supposed to be minus 45. it's now become more of a temperature issue. we'll get back into the snow, i guess, tuesday, wednesday. down here, hey, joe, you should be happy. down here, they have a new pit, the joe coinan pit. >> that's a darn good name. >> i think so. yeah. there you go. >> finally, rick, are people into the bitcoin and all these things down on the floor? >> well, i'll tell you what, down here they really kind of make fun of the bitcoin. once again, they made fun of the equity rally, but they were long. they make fun of bitcoins, but if there's a way they can honestly make a buck on it, they will. down here, the notion of bitcoin is too -- i don't know, at a

time where we're supposed to be as transparent as possible and it wasn't true in politics and certainly isn't true. you know, think of about the algorithmic -- and many of the traders have moved from traditional traders to really kind of i.t. technical traders and programmers. so the notion of a bitcoin and the underlying algorithms, there's a lot of suspicion down here regarding that aspect. >> okay. go ahead. >> rick, this is barry knapp, is euro/dollar pit starting to hike up a little bit? i'm sure you've seen what happened to 2013 contracts since the tapering decision. that's been where a lot of the action is. is there more activity down there? people getting focused on that? >> no, barry, you nailed it. down here, the big fundamental for foreign exchange is the same

fundamental they've gotten used to in the interest rate market. and that is management, intervention, and programs and liquidity. so, you know, the yen trade really underscored that dynamic the most. you know, traders were selling the yen aggressively because, of course, abe's relative size of what he's doing to ease quantitative easing. traders down here nailed it. in other words, when you pick up a paper a couple of months ago, the notion was, well, if tapering is going to begin and qe's going to end, that's going to be bullish for the dollar because it was a dollar buster. that's not the way it worked out. it became a relative qe trade. >> okay. rick santelli in chicago, thank you for that. stay warm if you can. economic data pointing to continued growth in the new year. joining us now for his outlook

of 2014 is bruce kazman. are you in the camp that is looking for potentially this to be a year of 3% growth? >> i think for the u.s., 3% and i think for the global economy basically an above trend year. it looks to us like we've got an environment in which we've taken out the policy risks both domestically and internationally. we've got our fiscal drags fading. and i think the private sector is in a position where it can really provide a boost to growth as we move forward here. i think all things are set up for pretty solid growth in 2014. i think the question we're going to be focusing on is whether we're actually healing. whether we're actually getting growth that's actually going to provide us with strong investment capital spending, return in terms of the labor supply. things that heal this economy and get us on a more solid longer term track. >> hey, bruce, it's rebecca patterson. good morning. when you're looking at capex, when you're trying to see what's going to drive that demand, are there specific economic data

releases you focus on most for the viewers for cnbc, are there one or two data points they should really focus on to see if that trend's playing out? >> well, i think where we're focusing on business surveys right now in the high frequency space. that gives us, i think, the quickest read on where business sentiment is. a broad sense not just in the u.s. but globally what's happening. and then i think when you look at the u.s. data, i think you have to try to extract patterns from a wide range of numbers, which often times are giving you kind of mixed signals. the business spending data had been weak in the second half of the year, but they're starting to turn up now. we have had better news, consumers better news in the labor market. and i think things are coming together right now. business surveys sending a clear message for a few months that things are going to pick up and now the data's starting to come into the picture showing that emerging. >> bruce, i'd be curious for your thoughts on what the big surge in inventory investment. i know most people viewed it as almost mean reverting if we get

this big payback in the fourth quarter. if you look at inventory sales ratios, they're fairly low. you look at the ism surveys, for me it's the part of this whole corporate risk aversion that's fading and they're investing in inventories, capital, in labor. you know, as part of that public policy uncertainty falling. do you agree with that? am i -- you think i'm on to something there? how would you view that? >> well, i do think we had an inventory build in the second half of the year that's going to run off a little bit. and one of the reasons not to get too excited about growth in the near term. but i think in a basic way, you're right. where the demand of the economy's been in the goods producing industries, where the demand has come from, i think, in recent months from businesses getting more comfortable. and i think inventory's a part of that. and i think the underlying trend is going to stay solid. i'd say a $70 billion run rate is not unreasonable. there won't be a drag here, and i think globally inventories are

lean. i think from the global manufacturing point of view, there's as positive in the pipeline. >> did it say you were expecting 3% growth in the united states? and we're questioning if that's going to be good enough. that's a problem we would've begged for earlier. >> well, i think 3% growth from the perspective of ten years ago would have been business as usual. now we're looking at that as something that's going to be popping champagne corks. and i think that tells you how much our standards have changed. we are in a world where we've had very slow growth for a long period of time after a deep recession. we've dug ourselves a very deep hole here. 3% growth is something we should be happy about here. it doesn't get you the kind of healing, at least not very quickly, and i think that's the call that matters over the next two to three years. how much of that healing can we look forward to. >> thanks for joining us this morning. >> thank you. coming up next, stock picking for 2014. this time, mid and large cap names that could work out for your portfolio.

check out some of next week's lineup. chicago mayor rahm emanuel, and steve forbes. plus, the jobs report, wasn't the first friday, but it's next friday. >> mm-hmm. >> more "squawk" next. so ally bank really has no hidden fees on savings accounts? that's right, no hidden fees. it's just that i'm worried about, you know, "hidden things." ok, why's that? well uhhh... surprise!!!

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♪ yup. another pill stop. can i get my aleve back yet? ♪ for my pain, i want my aleve. ♪ [ male announcer ] look for the easy-open red arthritis cap. it is a second trading day of the new year, and we're looking a little better premarket than we did yesterday. how about some individual picks that might work out?

jim kiefer is going to help us with that. he's portfolio manager of the five-star artisan mid cap value fund. morning, jim. >> morning. >> all new stocks this year? or these are stocks that did well last year, as well? >> these are stocks i would place in the laggards category with what's going on with the large returns. i don't think you want to be chasing names that have already done well. >> even though sometimes stocks that hit highs continue to hit highs and the converse is true? stocks that hit lows. can hit new lows until they go to zero. >> that's certainly true. that's one of the vulnerabilities, and one of the reasons you hire someone like ourselves. >> okay. what are they? give us some that we can actually just -- like we could buy if we wanted. >> how about a name like lowe's. not the hardware store but the conglomera conglomerate. you sometimes have the tisch family on your show. there are energy assets in this country, and there's a pipeline,

an offshore rig company, there's an insurance company. a number of the holdings are publicly traded. sells at a discount to some of those assets. and they have a big chunk of cash. they've shown a great record of building value over time. nice stock that isn't going to do anything in a red hot market for you. but you give it time, they're going to compound with a nice mind frame toward risk. >> nice guy, jim, john tisch, he's not bad. >> going to be on your show in a few weeks. >> not bad. i could see how someone would consider them attractive. all right. we're going to do that with all the ceos. after this article we had in the show about whether you need to be attractive to be a ceo. and you're not so bad yourself either. let's go on -- what's next? western union. >> western union, that's been a volatile stock. and it's been volatile for

self-inflicted reasons. it's been volatile for competitive reasons. when you get down to it, though, it's about money transfer, continues to be a thriving business, it's growing. it's, you know, with immigration going on, all this money to be sent back home. and this is a company that's gone through a little bit of a transition right now, relative to their competition. there are a lot of ankle biters going on at the moment. but this is the industry leader. this is the go-to company in wiring money. >> if a bitcoin or a joe coinan became the new currency, would that affect western? >> i'm sure, you know, they may already be on that game. maybe you can wire bitcoins. >> the joe coinan. nordstrom has lagged a little? >> strong of late, but it's lagged on a full-year basis. probably one i'd pay closer attention to on a pullback.

you've got the famous partner store, you've got the nordstrom rack off price brand not as many people are familiar with. that's a thriving concept showing a lot of growth. they've had great success online. you've got three outstanding businesses. i think part of the appeal is they have somewhere to go with their money. we've heard so much about these companies accumulating cash, not having anywhere to reinvest. they have a good area to reinvest. i could argue to you some of the parts are still cheap if i wanted to push the price for their nordstrom rack operation. i'd say for those who lean more aggressively in valuations, you can go at it, for others, i'd hold back. >> and you also like oracle. we can't really necessarily go into all your reasons, although i know oracle after years of outperformance, it did take a breather last year. >> yeah, it's been treated like yesterday's hero and it's not.

great company, ferocious competitors running the company, clouds of threat and they'll be in the game. being treated at run of the mill price in a market that trades much less significant companies in more significant prices. >> all right. okay. western union's got to watch out for the joe coinan as the new currency. i think we've got a shot. it's kind of cool. that's a kernancy. there was a new president just elected in madagascar, a former finance minister. just wait, his name -- >> wow. >> i've been practicing. >> wow. >> finally got a driver's license. did you see that the other day? did you see it? >> i had to write it out phonetically to remember it. >> is that the first election of 2014? >> might be. >> can we put that in the prompter for andrew in the next segment?

did you look at this? >> you had to go there. >> i'll practice during the break, and we will see. when we come back, we'll check in with jim cramer. it's going to take a little more than old man winter to keep him from his post. we'll find out what he's watching after yesterday's opening day selloff. ♪ yeah, he's clean, boss. now listen to me, duck. i have an associate that met with, uh, an unfortunate accident. while he's been incapacitated, somebody's been paying him cash. now, is this your doing? aflac? now, if i met with some such accident, would aflac pay me? ♪ nice. this is your stop. [ male announcer ] find out what aflac can do for you and your family... aflac? [ male announcer ] ...at aflac.com.

welcome back to "squawk box," everybody. the futures looking a bill all right this morning, up 45 points above fair value. let's get down to the new york stock exchange. jim cramer is standing by. i saw you up very early this morning, trying to get down to business, getting things ready. >> serving tables. >> he woke up before me. >> jimmy, i said i'm going to send my eggs back, i'm going to want more butter. i'm going to run you ragged. can i actually make a reservation there? >> sure. most people do expedia. the web has made it so that you don't need to have a 24-hour inn keeper. you give it to expedia, the next morning you see your rooms are booked and they handle your

checkerboard, which is what our inn keepers call your check-in list. >> would you tuck me in? >> you know weeks had one year that was very tough, couldn't figure out whether inn, bed or breakfast, community wasn't sure of it. we're booked probably 90% of the time. we're booked because we're less money than the other guys and because people actually like a family operation. >> they give you stock tips with the eggs. >> i buy the bagels at bagels for you, they're pretty good. >> i stop off at sids, dunkin donu donuts. >> some of the people don't know my coffee, we have to make a change there. >> you look at where the dollar is and oil is headed -- >> it was front seat/back seat day. i still think there was a lot of

profit taking. it was very thin. you know there was nobody on the road other than you, becky, that's why you were tweeting that. if someone comes in and does a big sell program, we will be down. there's no one around. >> next week, jim? >> next week will be a big week. i think you'll be pleasantly surprised by a lot of the industrials. everyone feels a little more confident because the government seems to disappear from the equation for at least a little while. >> last night i missed the game, which i would have loved to have seen. did you stay up? >> they made me stay in a hotel near "morning joe" so i was able to catch scores near the end of the day. between the guy next to me screaming at the woman and the elevator that kept going banging and stuff, i could barely concentrate. >> we got big games, yours on saturday.

i'm very excited about yours. i don't know which andy dalton is going to show up. >> the dalton that's given me 40 in fantasy and the dalton that's given me 4. >> all right, anyway, big weekend for the playoffs. huge. >> thank you, jim. see you in just a fumes. >> i cook. >> look, i apologize to the finance minister and i'm sure that he does -- >> maybe we'll get him on the show someday. >> there you go. >> you remember what happened in cypress. who knows. madagascar. who knows what the currency is. >> maybe they'll adopt the

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>> this is sort of a perfect combination. we see network security products coming from fire eye, end point and service components. >> the attacks people are suffering are like being sucker punched from cyberspace. you need the expertise behind those products to really respond to the complex attacks we're dealing with. >> that was earlier today on "squawk box." we heard from the two men behind the deal of the day fireeye or is it -- fir-eeye. paying $1 billion to buy the security firm best known for

outdoing chinese hackers. >> to me the big picture of fireeye is that m&a is gathering a little bit of momentum and that could be another plus for stocks this year. >> i thank you both for making it in today. and all of you at home stay warm. we'll see you back here on monday. right now it's time for "squawk on the street". a frozen friday on wall street as the northeast gets hit with a double whammy. the first major winter storm of 2014 and bitter cold temperatures. as a result, thousands of flights cancelled, snow covered roads, school closings throughout the region. welcome to "squawk on the street." i'm david faber with jim cramer live from the new york stock exchange. carl quintanilla has the day off. let's get a look at the futures