long. the deals will be out there. >> you have the distractions at home. you have the focus. i'm at work, leave me alone. thank you so much. see you guys. happy thanksgiving. have a great weekend. we will see you on monday. now it's time for "squawk on the street." ♪ wrap it up ♪ i'll take it >> black friday is here and the shopping rush is on. retailers opened for an upbeat holiday season. we'll cover all the basis including an interview with target's ceo. good morning and welcome to "squawk on the street." i'm david faber with simon hobbs and kayla tausche. carl and jim have the day off. stock markets closed today at 1:00 p.m. eastern. you see a mixed bag with the s&p perhaps set for a bit of a lower open. if we end in positive range, six

straight weeks for all the stat keepers back at hq. crude oil plummeting on opec's decision to stand pat on output quotas. oil stocks taking a hit on that news. we saw a low of $67 on wti. brent well alove that back to $73. you can see airlines, the reverse story. very positive moves there given that's one of their key cost inputs. it is coming down. our road map starts with black friday. stores and online. we'll have live reports from across the country this morning with retails winners and losers. >> is this a new era for energy prices? oil plunges as opec fails to agree on production cuts. what it means for fuel prices in the markets and u.s. shale producers. >> and a live interview with target ceo brian cornell. we'll talk about his turnaround

plan for the retailer, that data breach which has wide-ranging consequences and promotions planned for this holiday season. >> bargain hunters out in force this morning but shoppers hit the stores on thanksgiving evening. courtney reagan is in dayton, ohio, where she has been checking out the action. >> all this shopping madness started yesterday for some folks overnight. for some folks in the afternoon. we talked to zo tucker a little bit ago. this isn't her first mall of the day. she went to the outlets before here. >> there was no parking at all. it was a lot of people like, i got there concerned 1:00. it closed at 2:00. it was all the late people trying to flood into the stores and get the best deals. >> it's the deals and those cash incentives that are keeping shoppers shopping throughout both yesterday and today. zoe waiting in line here at h&m

which is giving away $300 to one lucky shopper. i went to a local walmart and target, the same two stores i hit up last year. there were many more people in both stores. lots of full carts. i lost track counting carts because i couldn't make my way to the front of the line. i lost track around 200 carts. walmart was more crowded than the target. at least the one i went to. the world's largest retailer saying 22 million shoppers hit up its stores and the second best day online. target saying its online sales up 40%. that marks its best day ever. if you look at the grand scope online, ibm. thanksgiving day sales up 14.3%. what is interesting is that the average order size was down just under 2%. so perhaps that means shoppers are shopping, but they are being

more savvy with promotions and making sure they are getting the good deals. back to you. >> busy day. thank you for that. oil prices sitting at a 4 1/2 year low. gasoline prices set to follow. huge impact for shoppers this holiday season. take a listen to what macy's ceo said on cnbc earlier this morning. >> gas prices are down as you reported. not good for certain companies, but certainly good for the consumer. that should be positive. so to me there should be an opportunity for consumers to spend a little more this holiday season. >> the question is where will the consumers be spending this holiday. let's bring senior equity research and analyst and senior research analyst with piper jaffray. good morning to you both. you've been out in the stores in advance of coming to our studio today. where have you been and what

have you seen? >> i've been in the chicago markets seeing family for the holiday. i visited a couple of stores this morning. i have a few of my team visiting primarily new york. >> what did you see, what's the information? >> there's crowds. the stores are crowded as is to be expected. i always wait for more substantial data to make a call on black friday. i think what's happening this year as has been the case in past years, a lot of people are staying home shopping. i was also in the malls over this week. a lot of stores had black friday specials early in the week. that's spreading out the shopping season, if you will. >> we should note gasoline prices last year were at $3.29 a gallon. this year at $2.80. presumably with what's happening now on the world market, gasoline prices could fall further and stay low. does that change your analysis for the retailers? >> we have a fairly muted

outlook so far for black friday and for holiday overall. back-to-school which correlates really high with holiday historically was kind of muted, as well. that said, the gas price impact could help the optics around how consumers are feeling about their wallet heading into holiday. we'll keep a watch on this one. >> we already have low gas prices in october and only saw spending rise a slight 0.2%. even though the consumer might have more money, we don't have evidence quite yet that they are spending that money. what are you looking for? >> what we are looking for is specific category spend overall. would be great to see them buying apparel again, fashion again. they've been keeping it close to the vest and close to home. that's where they are seeing their overall family wealth and investing. we did start to see apparel and accessory purchase last night when we were in stores. we have a glimpse of hope as we

think about the balance of the holiday season. >> people learned by now, you get the discounts on consumer electronics typically now. as far as apparel is a concerned and fashion, that comes later in the panic in the last two weeks, doesn't it? >> it certainly can. again, this is why we are encouraged to see apparel purchases happen last night. as we were surveying some of those baskets as people were buying. they were adding on those additional categories. we are encouraged, but will be monitoring throughout the holiday season. >> brian, where do you weigh on hearing about apparel sales struggling on this ongoing debate that says people are never coming back to that part of things. spending more money on electronics, using their mobile phones to buy things that aren't necessarily apparel. is that something we'll be watching for years to come? >> i think so. my expertise is more in the hard goods than apparel side. i think some of your guests were talking about prior shows,

there's been a significant shift in spending towards other categories such as consumer electronics, jewelry. i think that continues for a while. when i hear about ongoing weakness in apparel, there is an appetite to spend. lower gas prices aren't helping. that leads to better sales elsewhere and consumer electronics, jewelry, other categories benefit. >> consumer electronics, heavy promotional activity eats at margins. hd tvs going for $119 at 40 inches. that is a crazy price. what do you expect the impact on margins given how competitive it already appears to be? >> you hit the nail on the head. i had a nice conversation last week with best buy senior management. it's all about working with vendors, managing promotions correctly. the hope is you drive sales

volumes and the margins aren't hit that bad. one big positive that i mentioned best by is that the comparisons for last year are really easy. last year was a weak margin year. against that, it could be slightly positive. you are up against easy comparisons. >> they are trying to create the thrill of discounting. to what extent do they stock up. how many tvs do you think kohl's has at $19.99. will those stocks in general across the industry, are they likely to peter out or people arrive in the stores having bought in to find that what was advertised is not typically available? >> that happens. those are your door buster specials, if you will. they do peter out. again, the key is when i think about this, it's managing ahead of time.

what we've seen in past years, where they get tripped up, it's not on the planned promotions but the promotions that happen as retailers begins to panic. it's early right now. we are only a few hours into this holiday shopping season. that's what i'm going to watch for. it seems these are staying on plan. >> $60 billion over four days. thanks for joining us. the other big story of the day, oil prices plunging to their lowest levels in more than four years. this after opec members agreeing thursday to leave the group's oil output target unchanged, 30 billion barrels a day rejecting various calls for a cut in that production level. steve is in london with the latest. >> i don't think they agreed to leave it unchanged. they couldn't agree to cut. the only option open was to leave it where it was. they are very upset being asked

once again to do all the heavy lifting on the price. they have been the price makers for many years. the whole reason they came together was to create long-term stability in the oil price. should be no surprise that the world looks still to opec to influence price and cut production when there is overcapacity. that's the meteoric shift. we spoke to many members. they were very upset the russians came and went. they decided not to offer anything in terms of cuts. that would have been 50% of the world oil producers acting to support prices. that didn't happen. they say it wasn't their problem. i spoke to the uae oil minister. he summed it up from the opec point of view. >> we care about the long-term stability of the market. we are not interested in the quick fixes. the oversupply is not something opec did. if there is an oversupply, it is

not something opec had done. therefore, it's not fair to ask only opec to fix or to do it. >> they say it wasn't us. they are blaming shale, blaming north america for creating oversupply in the market, as well. opec creates the condition for that. i want to show you quickly, look at this chart. this is three years of over $100 a barrel. that is the conditions that meant it was possible for shale to grow. possible for that investment to come in and make a profitable investment in texas and elts where. this is the environment beforehand. you've got the empire state. $150 back down to $130. in '09 we saw a huge amount of capex coming off the table and saw the steady price rise back up to $100, $110. that is potentially going to happen now. while the consumers and airlines may be making hay today and excited about this price

decline, the problem is so much investment in opec and nonopec could come off the table. we'll get maybe more price declines because of the short term over supply. a lot more volatility. i'm reading research saying capex is going to be side. >> i want to ask about shale production in this country. one russian billionaire was suggesting specifically opec has a strategy of cleaning up the american marginal market, as he put it. the front page of the "financial times" also says this move by saudi not to do a deal is specifically in order to knock out shale production or some of it in this country. did you hear that? is that what they are trying to do? >> simon, i asked this exact question specifically to the secretary-general. i sat down with him 45 minutes two weeks ago and said specifically, is this a game of chicken? is this the game plan? he categorically said that is

not the case. i've got to say he is fed up with all the nonopec production and opec production where people want to increase. it's not just about texas. this is about members within their own cartels, their own grouping looking to regain market share. iranians want to put more on. everyone wants a higher price, but none apart from the ddc were prepared to do the cut. i think saudis had enough of that. >> good to see you back home in london. steve cedric after his trip to opec. coming up, a live interview with target's chairman and ceo brian cornell. you want to hear his game plan for boosting holiday sales. ahead, the new face of retail. a look at google express as it takes on amazon and others in the same day delivery wars. another look at futures.

half day of trading today. 1:00 we close. here is a look inside the mall of america in minnesota.

it's been a rough go at target since the hack attack. julia is in target in glendale, california. >> reporter: good morning. target's massive data breach of 40 million credit card numbers this day last year cost the retailer $150 million and cost target shoppers' trust. they hope to continue its recovery after reporting its first rise in same-store sales in seven quarters. an october creditcards.com finds 45% cardholders avoid one of their regular stores if it experienced a data breach. one of the shoppers we talked to, memories of last year aren't holding them back. >> i know it can happen, but i'm not going to stress about it. >> i think about it every time i

come to target. didn't stop me from coming to target, but i do think about it every time i come and shop. >> it didn't affect us. i did all my shopping there last year. i didn't have an issue. >> they are expanding target's black friday deals far beyond today's frenzied instore experience. they've been offering discounts as far back as november 10th. stores were open 6:00 p.m. yesterday thanksgiving day. it's giving shoppers mobile app access to extra black friday deals all week. plus offering free shipping till december 20th. for those who don't want to risk using their cars in stores or brave the black friday crowds. we'll have to see if all those offers can bring this week results back to last year's levels. >> thank you very much. target ceo and chairman brian cornell is about to ring the opening bell here and then will

join us for a live interview here on cnbc. >> game stop hoping you're in the mood to play and buy video games this black friday. of course, the entire holiday season.

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welcome back to storage. we are live with steve from princeton securities just a few minutes before the opening bell. it's a shortened trading day but the last trading day of november. what should we look for? >> obviously looking for damage done here in the energy sector. looking at transports very closely. if you're not delivering oil, you are going to have a good day. airlines will probably have a good day. firms that deliver parcells, delivery services, they'll have a good day. it's an interesting half day set up here. >> it's exxon, chevron and oil majors sinking the dow. do you think retail and the numbers we've seen on a preliminary basis out of black friday can offset that at this point? >> there is a chance they offset it today. i think the whole situation with oil is bigger than retail. going out the next month or quarter, there is so much out there we can't say yet. if you play i your sectors and stay focused, this is a game you can play.

>> we are on track for the sixth consecutive week of gains. we finished off the best five weeks for the markets since the financial crisis april 2009 coming off that market drop in march 2009. normally this is a bullish time of year. consumers are spending. do you see any reason for steam to be let out of the market going forward? >> the way the market behaved since october, there are so many guys left behind they have to chase performance. i don't think this is a bad time for the market. >> what about oil overall? obviously, opec decision has rattled the oil markets. it hurt oil field services company, hurt refiners and hurt every company in that sector. brought up the argument maybe it's too costly for some shale plays to be profitable. do you think it would be wise to take money out of that sector near term? >> that will offer support. maybe in the mid 60s. maybe this week or later.

maybe from that shale sector. maybe we won't see production going forward we once expected. i would be unwilling to take a gamble in that area. >> bond market closes 2:00 p.m. we could test october lows for yields. do you see that happening today? >> i think 2.20, maybe a little below is where we go on the ten-year today. i don't know if we test anything lower. we are headed in the right direction now. >> we'll keep it tuned. we appreciate your input this morning on black friday. more "squawk on the street." it's five minutes to the opening bell. bulldog: bulldog: oooh!

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>> have they come in the past? >> they have. they are getting old enough now they like to get their sleep. >> can't blame them. >> they are up late at night. >> my son is. my daughter, we still get her to bed. they are very well aware of the fall in oil prices. we like to talk about these commodity markets in the household. everybody will be aware of it as of today. this fall has been dramatic. it's been a theme of the market for weeks if not months now. we are going to see the majors, many of these shale plays in the u.s. whether it's continental or eog. airlines up. the ramifications are more than simple stocks and/or bonds on the yield side. it's global and geopolitical. >> for this country, the question has to be where you are in shale production and what levels you get knocked out. deutsche bank saying most of the back end formation is profitable at $42 a barrel or more. for a huge amount of the industry, this is not yet a

concern. >> there is still a lot of benefactors from this. ups, fedex which are set to deliver a record number of packages this year will benefit from records. >> you are watching the opening bell. take a look back at the realtime exchange. kind of a mixed bag. more green on the old board back there in hq. at the big board, target and bull's-eye. that is the bull terrier mascot. they dress him up in full regailia. >> so well behaved. >> yes. we'll talk to the ceo in a few minutes. at the nasdaq, investors title company doing the honors. >> delta airlines up over 5%. southwest up five. carnival are, ups exactly as you were suggesting, immediately bouncing on this move on oil. >> interesting to see the bounce on cruise lines.

we focus on the airlines and immediate impact low fuel prices will have object margins. cruise lines benefit to a slightly lesser degree. >> they use a cheaper, dirtier oil. the important thing here is the realization you could be low for long on the price of oil. the oil build goes through the first quarter. you're up to an excess in the market of 1.8 million barrels a day in the second quarter. that's when you'll feel the most pressure. it's that realization these prices are going to stay low for a long time. that changes your investment decision arguably if you are in shale production. also the decision if you are a leisure company. >> in the balkan or the permian. continental. these are the key shale plays, if you will.

the huge beneficiaries of that technology advance we've seen over the last decade or so that enabled u.s. production to grow exponentially to the point where we are talking about becoming energy independent in the next five years. as a continent before that given what comes out of canada. continental, clr, i assume it's down a similar percentage. continental down almost 14%. >> i think rah lot of people will remember the note deutsche bank put out two weeks ago when they were talking about the high yields market. although many of the energy sector sits at the high end and can absorb these prices, as you go lower, the suggestion was it would be likely enough to push the whole sector into distress. >> investors have been trying to figure out whether the move in yields is because of oil or

because of central bank action around the world. we saw france's ten year fall below 1% for the first time ever. do you think that is because of oil? >> it's both, isn't it? again we had inflation figures coming out. if your inflation figure is so suppressed, your central bank can go further. it amounts to the same thing. you see the argument the fed can stay lower longer despite you've got 3.9% growth. >> kayla you follow the capital markets activity. it's been very strong. for a number of these companies that issued high-yield bonds to fund production, fund finding and producing oil from shale, one has to wonder what this does in the high yield market who invested in many of these companies in terms of their balance sheets as they watch the price come down. >> four, five years ago we were talking about a quick depreciation in natural gas prices. what that did for lidynegy, dxu.

>> it's bankrupt is what it really is. >> that put capital structure under real duress because of how much they borrowed in operations. they are under stress here. >> no doubt. i can think of a number of private equity firms. that will also become a theme here as we watch continental down over 14.5% right now. >> as a complete sidebar, for some of the oil-producing nation states like venezuela and nigeria, they are likely to be uneconomic. >> what about the russian ruble falling to an all-time low against the dollar. >> mystery is why the russians didn't attempt to do a deal with everyone else. are they trying to knock out shale production in this country. >> why is everyone so intent to

knock out shale production in the usa? >> they can take it out profit longer term. >> the headline of barclays note was "over to you, america." >> now we'll send it over to mary thompson on the floor. >> good morning. energy stocks and retailers are going to be in focus on this black friday. we did open at record levels for the s&p 500. the broader markets have turned lower. keep in mind about 9% of the s&p is made up of energy companies. as expected, they are under pressure given the crude oil in the wake of opec's decision not to cut production. drillers is a group being hit hard in early trading today. a bad session today because take a look at where they've been throughout the month. a really hard month for these companies. transocean stock down 21%. all of them showing corrections for the month of november.

we do have the dow transports at a record high in early trading. let's take a look at some of the underlying reasons for that. gains we are expecting in airlines also as simon was mentioning earlier. cruise line operators and package delivery services like ups all getting a benefit from this pullback we are seeing in oil prices today. retailers in focus on this black friday. walmart saying that it had 2 million visitors in its stores over the last two days. macy's saying more than 15,000 outside its flagship store in new york. target strong online sales. it said it was selling 1,800 tvs per minute. amazon.com strong sales there in excess of 28% on thanksgiving day. we are watching the ten-year note with yields at a five-week

low there. that benefits a number of rate sensitive sectors today. utilities higher. keep watch on reits and the telecom sector as well in today's session. we want to take a look. that's what the story is now. dow up 32 points and pulling back. s&p after opening in record territory is slightly lower now. back to you. >> thank you. still higher on the nasdaq. let's send it up to the nasdaq tonight with morgan brennan. >> nasdaq up though modestly, about four points. on track to close 1.5% higher in its sixth straight week of gains and poised to finish november up more than 3%. to be the best performer of the major index. tech stocks driving that outperformance, particularly apple up about 10% so far this month. just to put apple's gains in context, michael o'rourke says apple counted for 45% of the

apple rally since the september pullback. another winner, amazon shares rising today after leading online sales yesterday. also getting a price target increase to $400 from piper jaffray. take a look at solar stocks. those are moving to the downside again. both those are lower on falling oil prices. stocks like solar city, first solar, sun power all on track to end the month well. we've seen this relationship between solar stocks moving lower on lower energy prices since oil started to slide in the summer. back to you. >> it's a space you know well. we appreciate you bringing us up-to-speed on that. >> oil prices plummeting one day after opec's meeting. bertha coombs is at the nymex. this is the leading indicator at the market. what is the story on the floor of the nymex? >> the leading indicator and

people are watching the low we hit yesterday in the midst of this flushing out of prices after the opec headlines cross. people were trading electronically with the market closed for thanksgiving. $67.75. we seem to be holding that as we have opened up here on the floor. what traders are saying is we are ushering in a lot of volatility. there is no other major event coming up that is going to provide any kind of floor for all prices here. now we are going to be watching to see what the demand numbers are. will china step in and start buying more because of the fact prices are so low? certainly for net importers, this is going to be something that is going to be positive. it's the producers where the problem is. with opec saying, hey, we don't have to be the policemen on prices now. the rest of you, you need to

step in and figure out how to put a floor on prices. we are seeing brent prices bounce back. along with that, gasoline prices here this morning. wti certainly getting hit hard. and for a lot of the players here, whether it is investors or industry players, it really means a lot more hedging and watching to see what they can do to control some of this volatility. for traders, in terms of the wti price, they'll watch to see if we can old that $67.75. after that, there is not much support. looking at $67.12. that was the last time prices were that low back in 2009. back to you. >> thank you, bertha. >> a major disinflationary pulse around the world. >> we go from cartel to competition.

nay-sayers say why does the u.s. want to produce oil? it goes on the world market. won't bring the price down. think again. it has. in terms of disinflation, inflation numbers in europe were about as expected. who is going to raise prices when unemployment in italy is over 13%. if you want to know where interest rates are to go. it's about the spread. 150 basis points. boons are at $70. look at the intraday chart of 10s. what's the low yield today? 2.20. that spread remained constant around this 1.50 mark. weakness in europe, disinflation is the watch word but more of an effect than cause at this point. if we look at a ten-year month-to-date, it's been a stellar month. just as stellar on almost a

one-to-one basis. when it comes to foreign exchange, the euro zone is going to embark on the wonderful world of quantitative easing. it is quite amazing. seems as though their currency market for november had volatility but still hasn't moved much. nothing like the next chart. the dollar/yen month-to-date. that chart shows exactly how weak the yen is. granted the euro is much lower than it was earlier in the year. all things considered, it seems as though show me should be what with mario draghi has on his own notes. >> back to you. >> thank you, rick santelli. up next, target chairman and ceo brian cornell here at post nine. it's his first holiday season as head of the discount retailer. there is a look at bull's-eye, the mascot on the floor of the stock exchange.

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never.ever getting married. psssssh. guaranteed. you picked a beautiful ring. thank you. we're never having kids. mmm-mmm. breathe. i love it here. we are never moving to the suburbs. we are never getting one of those. we are never having another kid. i'm pregnant. i am never letting go. for all the nevers in life, state farm is there.

it's been about a year since target suffered that massive data breach. there are signs that consumers may finally have shaken off that cyber attack. what changes target made as consumers open up their pockets this black friday morning? who better to ask than target's ceo brian cornell. >> good morning. great to be here. >> i'd love to start off on our other story today which is the dramatic fall in oil prices which is having a positive impact for consumers in terms of what they pay for gasoline. we make a lot of that saying that is immediately money in the pocket books of people who will spend it. is it true? do you see impacts from falling gas prices and are you expecting to see more? >> i think the combination of rising consumer confidence, the changes in an employment standpoint and gas does caught less than it did a year ago. the combination of those factors is boding well for the retail environment as we enter this

important holiday season. >> for the few hours into this day, do you have any sense how things are going on this important day for retail? >> it's still early. it's not 10:00 yet on black friday. i like to look at the facts. from an online standpoint, we saw tremendous results yesterday. it was a record day for us online. very strong engagement from an online standpoint. we launched free shipment and it's connecting with the shopper. they are visiting our site more often and conversions are up. i was in stores last night, up in our harlem location. when we opened the doors at 6:00 p.m. we had a big crowd waiting for us to open the door. around the country as i'm getting results, we had quite a few people. hundreds, if not thousands,

waiting to shop. we expect that to continue on black friday. >> there are some who believe you get a bit of a price premium in terms of people who visit your stores because they enjoy the experience more than at some of your competitors. online it would seem it's all about the price and product. how do you effectively compete online against those? do you have to be the cheapest? >> for target to win going forward, we have to provide a great in-store experience. wonderful merchandising. we have to take care of our guests. we also recognize convenience is important. you can shop online and an hour later come to one of our 1,800 stores and pick up your order. convenience is important. we know more and more shoppers are turning to their digital device, they are shopping

online. we thought free shipping was important to allow our shopper to come into our stores to shop and pick up or shop online. that combination for target gives us a unique advantage during the holiday season and throughout the year. >> early numbers target put out, digital sales increased 40% yesterday versus year over year. with free shipping, that is expensive. you do 40% more sales in one day? if you can carry that throughout the rest of the holiday season, how costly will it be to ship those products? >> we saw strong online performance in the third quarter. you saw our announcement. we talked about online business growing 34%. our outlook was 40% during the holiday season. early indicators are we are on track. we expect good traffic in our stores. we want people to shop online an pick up. we recognize up until december

20th shipping for free is an important offering. >> when you came in, people said it was baby products and fashion the board was more interested in concentrating upon. the big question because of your own background, last three jobs were focused on foods. the big question is over groceries, which expanded. then there was a view that should be walked back because it wasn't target-like. what are you going to do with groceries? >> we are focused on style categories. apparel, home, beauty really important. baby and kids you talked about we think is an important category as wellness. we are not walking away from grocery. right now we want to make sure we think our strategy there. we want to make sure we have a unique positioning with grocery. you'll see more next year. we are not walking away from the food business. it's an important traffic driver. we want to put a very distinct

mark on our grocery offering. >> how will you become distinctive in that? >> first it starts with really understanding what the consumer is looking for from target. we are elevating the in-store experience. we showed your colleague courtney reagan great in instore fixtures, the way we are presenting product at home. we think that will change the way the guest abouts respond. we need to continue to bring innovation. we have 35,000 new items in our store. many are in apparel and home. we want to make a mark during the holiday. great partnerships all important during the season. >> we have to ask you about the data breach. it was this time last year when consumers' credit card information was first put at risk. target becoming the first of several retailers to suffer a data breach. do you put money away in case it

happens again? what budget do you have in place to make sure it doesn't happen again? >> the important place to start out is a year ago this was all about target. today we recognize this is an industrywide issue. in retail, banking, food service. across america. we've all got to be focused on data security. we are very focused. not just during the holidays, every day. we have a great team, we elevated our systems, elevated our defenses. this is an industrywide issue. we all have to work together to protect the american consumer. >> you get hit harder than many others. was it because you were first? >> it was. we're first. we are an iconic american grand. everyone on the floor talks about, i love target. when it happened to us, it was front page news. it's happened obviously to many other retailers. i think as i talked to our

shoppers, they put the target news aside and realize this is a big industry issue. we all have to make sure we are on our game. >> to the extent it contributed or sales or didn't contribute a year ago, do you benefit to those comparisons? >> i am focused on winning them back. that's why we have such a great advertising campaign this year. this morning one of our big black friday offerings, 10% off on gift cards. we want people back in our stores, shopping with us during the holiday season. we are looking to win back their footsteps or their fingers, if they visit our website. >> before we let you go, the question we are asking all the ceos fill in the blank, the state of the consumer in the u.s. is what? >> i think the simple word would be improving. their outlook is better. confidence is up. what i saw last night not only in our stores but actually looking at competitive retail in the new york area, consumers

were out there engaged. they're shopping. while it's still early, it's encouraging to see the trend. >> we appreciate you being with us. >> great to be here. have a good holiday. thank you. >> brian cornell, chairman and ceo of target. phil lebeau look at black friday for the automotive makers. (vo) rush hour around here starts at 6:30 a.m. - on the nose. but for me, it starts with the opening bell. and the rush i get, lasts way more than an hour. (announcer) at scottrade, we share your passion for trading. that's why we've built powerful technology to alert you to your next opportunity. because at scottrade, our passion is to power yours.

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to be a better investor. ♪ let it go ♪ i am one with the wind and sky ♪ ♪ let it go >> happy black friday. shoppers across the country taking advantage of deep discounts and door-busting deals at retailers.

toys from "frozen" at the top of most parents' shopping list taking the top spot away from barbie. i'm simon hobbs with kayla tausche and david faber. carl and sara are off today. the big news is the fall in the price of oil. you've got a lot of the airlines and macy's and walmart doing well. a lot of oil and gas producers in negative territory weighing on the market. >> chevron and exxon taking 60 points off the dow. caterpillar taking eefr 23 off. we are covering every angle of black friday. who is set to come on it as a winner and who might not be benefitting from today's shopping spree? >> oil under huge pressure. we'll talk to bank of america's head of global commodity research about how low it can go. >> exclusive interview with the president of game stop. we'll talk the state of gaming and how that company is

profiting from the holiday shopping season. >> we start with black friday. retailers hoping to see big sales this year despite cautious forecasts. courtney reagan is live in a mall in fairfield, dayton, ohio. >> good morning to you. that's right. we are here at the mall fairfield commons. it opened 6:00 on thanksgiving. shoppers have been here all night long. they were here when we began setting up 2:30 a.m. they picked up this t-shirt "i went, i spent, i survived black friday" with a hash tag there. we saw an overnight lull. if you take a look at some of the lines we saw around the country, it was no different. best buy, walmart, target seeing decent traffic levels. especially the target i visited here in the midwest. much higher traffic than i saw last year. promotions were working.

we have an interactive map. it comes to us from the folks at shopular which uses tracking at 40,000 retail locations. this shows where folks are shopping or likely to be shopping in realtime. interesting data we are able to pull from the geo fencing capabilities there. i spoke to one analyst today. he said it's interesting what's going on with traffic. the true test will be on saturday. is tomorrow going to look like a day after black friday or look like a typical saturday? that's something we are going to watch carefully. online sales have begun to take more and more away from in-store shopping. ibm says online sales up more than 14%. 1/3 is being done on mobile devices, up 25% from last year. huge growth in that area. retailers have to make sure

their apps are full and functioning. you mentioned earlier the best buy website is down right now which could be a problem on this very big shopping day. walmart knows mobile is a big part of its strategy. 25 million shoppers downloaded its black friday circular using it to hit up blockbuster and door buster deals. we'll talk to neil ashe on monday and get more on that. back to you. >> great stuff. it will be a long day for you. our next guest is out in the trenches. joe feldman is assistant director of research. he is on location. >> good morning. you are calling in from your on the ground research. what are you seeing? >> we are seeing a lot of traffic out there. people are coming into the

stores. you could have gotten a lot of black friday deals yesterday online or earlier in the week. the frenzy may not be the case. i think traffic will pick up as the morning wears on and the day wears on. >> traffic doesn't always equal transactions. because people are in the store doesn't mean they are casually looking around seeing what some of those deals are. have you been seeing those consumers? are they pouncing? are they buying? >> we are seeing some buying. you make a very good point. when we pulled up to walmart, i saw at least three tvs coming out of the store. same thing with target. i saw a couple of tvs. that's one of the hot items. the "frozen" dolls are doing quite well.

you are seeing some level of conversion. it's very hard given the nature of the traffic trends right now with this black friday being elongated, to tell how good things are in the stores. >> there is no doubt tvs will be the hot property. $60 billion of course is estimated to be spent over this four-day period day two of that. i guess the question we come back to is profitability and the degree to which black friday is an indicator where we are going with the holiday season. some say it is. what we see is the headlines today might be short-lived discounts, mainly consumer electronics from places you might not expect to find consumer electronics. >> that's right. one good thing with profitability for black friday perspective is today was very, very well planned and well choreographed. i don't think you'll see retail taking much of a hit.

if we are still seeing these big piles of merchandise throughout the stores in a couple of weeks from now, that's when we'll see discounting. so far, the promotions this year versus last year seem to be about the same as far as the level of discounting going on. >> break it down for us. what stocks do you like. what are you seeing that encourages you? >> i'm still a big fan much dutch. walmart and target are big destinations. i think they'll have good seasons. target was impressive this morning. getting a lot of traffic throughout their store. dana talked about macy's has been doing well today. she likes that one heading into the season. >> finally, best buy's website is down as of moments ago. that's obviously a huge headache

for management and customers alike. how long until you would fear that would have a reasonable dent in some of the sales for today? >> you don't want that to happen for too long. it's a good sign the traffic and demand is quite high. at the same time, that is not a good thing for the retailer to have happen. you don't want to see that. best buy put a lot of money and investment onto their website. they should be able to rectify that quickly. i'm sure they'll rebound from it. >> one would hope. thanks for calling in from the field. >> thank you. >> joe feldman from telsey advisory group. >> these are pictures of black friday makg its way across the pond. this is video from the united kingdom earlier today. the big fight comes over the televisions.

criticizing the stores for not putting in as much security as you need to deal with what's going on. >> always like to be cheered when i'm fighting over a television. >> we like to drink and like to fight. >> one store was opened from 8:00 p.m. to 10:00 p.m. >> what are you saying we lay in bed all day? >> no. i'm saying their hours are shorter. when we come back, more on the steep dive in crude oil today. prices falling to a fresh four-year low after opec deciding against an output cut. female announcer: through thanksgiving weekend

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even get three years interest-free financing on serta icomfort and tempur-pedic. mattress price wars ends sunday, at sleep train. we are watching oil prices making big reaction to opec's decision not to cut out, but despite a huge oversupply, wti down about 6%. brent bouncing back 73.18. steve sedjwick in london with

the latest on that. >> i want to give viewers an understanding what happened with the oil producers. is there going to be a cut, maybe 1.5 million barrels a day. there were analysts who thought there would be a cut. more and more the ggc felt isolated. the ggc isn't the whole of poe selke. it's the saudis, the kuwait and qatar, as well. they were expected to take the whole burden. earlier in the week we saw russians and mexicans in town. if they had contributed, that would be 50% of global producers enforcing some form of cut. okay, it was opec. you had mr. ramirez of venezuela crossing the globe going around all the hotels trying to get a deal.

i had a chat with him. they said yeah, we are getting towards a deal with saudi. of course is dissipated in the last 24 hours. why? one clear reason. saudis said hang on a second. the world wants a cut in production. russians want a cut in production. iranians want a cut if production. but you are asking us to do all the work. they all wanted 100. they see that as fair price, rightly or wrongly. no one was prepared to defend the price apart from the ggc. iranians had been talking earlier to me and others about their desperation to increase production. to get up from 2.7 to 4 million barrels a day. this is a stance where saudi said we tried to defend price all this time. we are not doing it on our own. i think it leads to much more

volatility and more interesting meeting still to come. over to you. >> in fairness, you did call it. you said they wouldn't cut two days ago when clearly many thought they might. for more let's bring in head of commodity research. where do we go from here? >> i think it's clearly a bearish signal. if you are going to let the market balance itself as opec has stated, it's going to be a painful process. production costs for many shale producers are below current support prices. a lot of the investment that has gone into shale and other parts of the industry will continue to roll into the market for the next six, maybe 12 months. i think this sets a bearish scenario over the next few months. it looks like they are going to

roll over. >> where do prices go? the excess capacity builds quarter one, quarter two to around 1.8 million barrels a day of excess. where will that take the price down to? >> we think this is going to lead to an inventory builds on the barrels we have already. it can take the brent price down to $60, maybe below. wti risks hitting $50. it's all bearish. oil is a very volatile commodity. >> i want to highlight what you are saying there. you are suggesting wti and this country could get to $50 a barrel. >> we could see that yes over the next few months. >> what does that do for the vulcan shale production in this country? >> it will push out all of the

highly-levered players. marginal players. will lead to consolidation and mergers and will have an impact. it will impact outlook for inflation and equity values. credit markets. it's a wide-ranging decision in terms of the scope of the impact we will see, i think. >> in a recent report, for instance, your team wrote opec has begin up on its tradition cal role keeping supply and demand in check. the cartel is effectively dissolved. do you think opec is done? >> i think it is. i think clearly there is a role by the saudis to be played, but you know opec 11 doesn't make sense. opec 12 doesn't make sense. you mentioned the previous section. qatar, abu dhabi, kuwait and

saudi, maybe opec 12 doesn't matter any more. it's clearly opec 4 and opec 1 which is saudi. it's up to them at this stage. how much pain do they want to take after a 40% drop in prices. >> you talk about the prospect for more m&a activity. a lot of oil companies will need to merge to combine some of their activities to shoulder lower prices in oil. we saw halliburton and baker hughes announce a deal. halliburton down 11% which has taken down the value of baker hughes because it's a part stop deal. i wonder if you think some of the deals announced would be in, not crisis mode but would be under pressure by some of these prices. where else in the energy complex do you think they'll see similar pressure to do deals? >> i think we are going through unprecedented market conditions. this is a big change after many years of opec trying to act with

the prices. now we are seeing a totally different market where the swing in prices could be $50, $60 on a forward basis. this is going to lead to a rethinking of the way people operate in the industry. simply because higher volatility means that the cost of capital is going to be higher for industry as a whole. whether this leads to changes in some deals that have already been announced or leads to more m&a remains to be seen. i think it's clear if you were coming into this market thinking i'm going to have stable price the next three, five years, forget it. opec told you we are not going to do that. you'll have a lot of volatility and the market will balance itself out. commodities like natural gas have a range that has been from lower $90 to $65.

that is just an example. >> this is a big call to call it, to repeat that west texas at $50 a barrel. deutsche bank put a report out where they were talking about the high yield energy sector. they say if the wti price gets down to $60 a barrel, there will be a push within the whole sector into some credit distress. do you believe there will be widespread credit distress in the oil sector in this country this year? >> i think we'll see some distress, for sure. the market is imbalanced. supply is one way, demand is moving the other way. we will see distress. measuring the extent is hard at this stage. you will see good distress. good levels of distress across many sections of the oil industry. frankly, the question is will opec still have to cut production at some point to

balance the market? as i said, most production growth is baked in for the next six months. demand will react to some extent. if we get a warm winter, it's going to be a pretty nasty situation for many of the producers, i think. yes, i can see a lot of turmoil in the industry. >> it's a big call. thank you for joining us. >> thank you. >> francesco blanche. >> the trailer for "star wars" was just released moments ago. >> there's been an awakening. have you felt it?

>> the newest edition to the "star wars" franchise set to hit theaters december 18, 2015. that's right. it's a year away. it is directed by j.j. abrams, brings together the original cast members including mark hamill, carrie fisher, harrison ford and a slew of newcomers. >> r2d2 held up well. >> i went to the original in '77. >> i did. mother took me. >> i've never seen any of the "star wars." i don't plan on starting. i think i missed that wave. >> you can get in. >> i missed the harry potter wave. >> you can get in on that. one thing it does have resonance

for, those who are owners of disney stock, their ability to create franchises, lucas film. how many times have we mentioned "frozen" a franchise that came out of nowhere and is huge for them, whether consumer products, rides at disney world. >> the aim has to be to reawaken a new fan base. kayla is a saying as a generation thing i missed harry potter. >> kayla is not in the demo. younger than kalo even as young as she is. >> maybe i will change my mind. >> you will change your mind. david will take you. >> while retailers battle it out, they fight for victory the rest of the year. even going so far as working on protected technology. who will be the winner? we'll talk about that later. they're coming.

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major indexes slightly higher. walmart, home depot and nike are bringing the dow to the green. let's bring in jack ablin. jack, what are you looking at in terms of the reaction of the market for oil versus retail? >> i think the net effect is a positive for the u.s., a positive for europe. generally a good thing. energy is considered a tax. i will say with the fuel efficiency automobiles, it's become less of a tax cut. now that cars are more fuel efficient. my argument is if you bought a tesla you're annoyed gasoline prices are in the twos. >> that's a small audience.

they are calling the fall in tax prices a $75 billion tax cut. do you think that will flow through to consumer spending? >> it unquestionably does. i think the issue we face right now is not that consumers have been spending lesson energy goods than they have in the past. that's true. it's not largely about teslas. the question is whether or not the general change in consumer savings attitudes continues. the models we traditionally used. does that lead to an increase in consumers spending money? it's less because consumers have forever been changed in the wake of the crisis. >> maybe their spending habits are changed, but they are spending more own iphones and ipads. which is why we've seen apple going to all-time highs over

again. do you think there will be a reallocation of consumer spending? >> absolutely. if you look at median household income, nearly 20% of income is allocated to energy. any reduction will be a boost to household consumers' wallets and will be spent. what we are finding is americans are taking that extra income they had over the last five years or so and using it to reduce debt. now there is an article in the "wall street journal" this morning that would suggest that is starting to turn. consumers are willing to take on more debt. we'll see. this is an important season. >> can i interrupt you, jack? this conversation scares me. that we can walk away from the price -- if our last guest is

correct and west texas will fall to $50, that is a major collapse of an asset around the world and major input price. i don't think we know where that will take us down the line. we don't know what countries could implode. this is one of the biggest generational moves any of us are going to see in a major asset class. we can't sit back and say this is good for consumers. it is much more than that. particularly if you start getting distressed situations within the balkan. >> sure. i think you are right but the fact is countries like venezuela and iran are balancing their budgets on roughly $100 plus crude. obviously having it in the $70s is a major problem for their budgets. russia has a large currency reserve they can probably work things off a little bit of time. if you look at crude oil

denominated in ruble, it's not that much further downward. you raised an interesting point. if we do get a collapse in energy prices, that would certainly change the shift in balance. certainly not only geo politics, but also global economics. >> if i can interrupt myself here, let's be clear about something here. what happens in venezuela is irrelevant to the u.s. stock market largely speaking. what happens in a lot of these oil-producing countries is relevant to the u.s. stock market. in respect to balkan and eagle ford and the like, this has been a major thematic story. 1% of private employment is in the mining and exploration business. let's be clear. if things slow down or there are

distress situations, it is not to the extent that it is contained some broad destabilizing make row economic event. >> obviously we are scratching the surface on this conversation. unfortunately today we have to leave it here. have a great weekend. straight ahead, the ceo of target speaks out in his first holiday season as head of the retailer. what he has to say about black friday sales and lingering effects of that big data breach. tdd# 1-800-345-2550 [ male announcer ] your love for trading never stops, tdd# 1-800-345-2550 even on the go. tdd# 1-800-345-2550 open a schwab account, and you could earn tdd# 1-800-345-2550 300 commission-free online trades. tdd# 1-800-345-2550 so when a market move affects one of your positions, tdd# 1-800-345-2550 schwab can help you decide what to do. tdd# 1-800-345-2550 with tools like free live-streaming cnbc tv tdd# 1-800-345-2550 that give you the latest financial news and trends. tdd# 1-800-345-2550 and bubble charts and price charts that let you see exactly tdd# 1-800-345-2550 how market activity is affecting your positions. tdd# 1-800-345-2550 so when the time comes to decide whether to scale in

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the airlines may be up, companies that deliver packages may be up, cruise ships may be up, but these guys are getting crushed. oil out of shale, revolution that has taken us up enormously in terms of production, but given the price in oil and fall we've seen most recently with that opec decision not to cut production, they are getting hammered today. continental losing 20% of its value. >> happening now, protesters marching at walmart stores in six states across the country. they want higher wages and better conditions. very few of the protesters are walmart employees. >> reporter: good morning. it's all over here but the shopping at this walmart in

downtown washington, d.c. earlier we had a couple of hundred protesters representing walmart workers as well as representatives of the major national unions walking from union station to the walmart. they are calling for $15 an hour wages. walmart says the average wage at this store is just over $12 an hour. union organizers say that's not enough. they want more flexibility for workers in terms of getting the hours in the week they need to generate a wage sustainable for their families. they want to at least get a 40-hour workweek for most employees here at this location. walmart came into downtown washington, d.c. last year. they say they created about 300 jobs at this location. a big protest this morning. everybody's gone home to get in from the cold. protests across the nation, as well throughout the day today. we'll see where all this goes. this morning, protesters saying they want to see at least $15 an hour here at this location.

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black friday morning here on cnbc. we are linking to retail outlets and ceos around the country. joining us exclusively from the store front in texas is gamestop president tony bartel. welcome to the program. >> great to be here, simon. >> you were closed yesterday on principle for thanksgiving but opened at midnight your time. you are now 1/2 hours into trade. how is it looking? >> it's looking very exciting. yesterday at our stores i was out at midnight. we had linesed a midnight. thousands lined outside gamestop. we had great exclusive offers for people. we offer a great service level

at midnight. midnight to 1:00 was very strong. i think during the evening, customers went home. now we are seeing a second surge of traffic at the store. >> we should mention last week your stock was hammered when you came through with results. the delay of the release state of assassins creed from the third to fourth quarter took 5 cents a share off earnings, you were suggesting. can you make that up now in the run-up to christmas? >> i think what's interesting to note about the third quarter, all our channels, many of our channels had great performance during the third quarter. we had 147% growth in hardware. our mobile business was up 125%. digital was up 52%. there was a lot of growth that took place in that quarter. assassins creed did slip from the third quarter to fourth quarter. what we also saw some of these 8-year-old and 9-year-old console cycles did fall off

faster than what we anticipated. what we shared with investors in the fourth quarter we did narrow guidance. >> to that point, the aim is clearly to drive people to upgrade their consoles, as you hope to do rather than actually walk away to other areas. i know you identified affordability. this year is key for the consumer specifically getting them to upgrade. how are you dealing with that? what is the strategy to make it more affordable? >> first, let me address the strength of the new console cycle. 73% higher than the last time we launched consoles. from an industry perspective, the new consoles are taking off at a great pace and off to a great line. what we are doing at gamestop to make sure they are affordable as possible, we are offering over a quarter of a billion dollar

trade credit. most goes back into new software and hardware. second thing we are doing is offering a power forward credit card. we have 225,000 members that have taken advantage of that program. there's over $100 million credit available that will be spent between now and the end of the year. >> it's been a tough year for shareholders. you have this push and pull between those shorting the stock, i think it's 36% short at the moment with you ordering $500 million in buyback. it comes down on programs like this how you're dealing with digital. you have a big digital business. i know that is growing. you recently spoke about what people expect as a discount on digital downloads to the price in the shop. what do you say to investors that wins? what is the argument that you say we will be here and stay here and prosper as a business? >> from a digital perspective,

it is an important business to us and an important business to the industry. it will be over $800 million business this year. it grew at 52%. now there is a small and growing population of people who want to download games digitally. we address that. 15% of software sales in the third quarter were delivered digitally. when you look at digital sales, it comes down to two key things. can people discover all this great content and can they afford the great content? that's where a speciality retailer has such an important role in the value chain. from a discoverability standpoint, we have associates who know this content better than anyone else in retail. much of the content we sell is downloadable content we sell in conjunction with the physical game. over 95% of the digital content we sell is sold at a physical store. from an affordability

standpoint, over 60% of the currency that is used to purchase digital at gamestop is noncredit card. not everyone is either able or willing to put their credit card out on the internet. those were the customers we serve. we think we have a very relevant and important part in the value chain. >> it's good to see you and good to hear your boss on the conference call last week to had a cancer scare and has been off three months. he's back. wish him well on our behalf. we look forward to speaking to you again soon. thank you very much. >> will do that. thank you, simon. when we come back, kara swisher will join us live. >> we were going to talk about an hour ago we talked to brian cornell ceo of target on this day when we are focused on the drop in oil prices. and the drop in gasoline prices.

one would expect it would be positive for the consumer. here is what mr. cornell had to say he expects the impact will be. >> i think the combination of rising consumer confidence, the changes taken place from employment standpoint and gas does cost a lot less than it did a year ago. the combination of those factors is boding well for the retail environment as we enter this important holiday season. >> as it was this time last year when consumers' credit card information was first put at risk. target becoming the first of several retailers that have such a breach. do you put money away for a rainy day in case it happens again? what budget do you have in place? >> a year ago this was all about target. today i think we recognize this is an industrywide issue in retail, in banking, in food service, really across america.

we've got to be focused on data security. not just during the holidays, every single day. we had a great team. we elevated our system and elevated our defenses. this is an industrywide issue. we've got to work together to protect the american consumer and get the right defenses out there. >> you get hit harder than many others. was it because you were the first? >> and we are an iconic american brand. everyone i talk to on the floor talks about i love target. when it happened us to, it was front page news. it happened to many other retailers. they put the target news aside. they realized this is a big industry issue and make sure we are all on our game. >> target chairman and ceo brian cornell here at post nine. dow transports hit an intraday record earlier this morning. consumers, a lot of these transportation companies benefitting to a large degree.

>> not the rails which benefited from transporting oil fr. >> coming up, kara swisher will join "squawk alley." and her take on uber being suspended in nevada. that and more. you don't need to think that makes our lives possible. because we do.

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welcome back to squawk on the street on this friday. one of the last trading days. is it the last day of the november trade? >> i've deemed today it doesn't fit the narrative friday. first, how much energy does japan home grow? >> very little. >> what is their biggest worry these days. >> oil prices -- >> no you're getting ahead of my game. >> deflation. >> they have no home grown energy. horribly fearful of deflation. and what is the main driver of that as of late? >> lower energy prices. >> reconcile this. if there is anything that fits the notion, it doesn't fit the notion central bankers need to

get from 1937 to 2014. the notion that japanese shougd rev should be reveling in the current atmosphere. >> i've been trading 47 years and when energy prices drop the end user now we're all concerned about the inflation. >> self fulfilling. >> now the lower oil goes the more aggressive under this scenario the bank of japan is going to have to be. because we have falling prices. >> it doesn't fit the narrative friday. italy. >> 13.2 unemployment. >> if you are one of the 13.2%, do you think raises prices is going to bring them out in droves to shop? >> no. >> so isn't one of the big dynamics just general lack of employment? >> of course that's been the

issue and it saladed it. if they throw these unemployment numbers around, we're concerned when we get to 8%, 7.5%. europe is sitting complacently. >> talking about doing qe, do you think that is going to really help? we could argue maybe if first chapter. in the end what it's doing is making those more affluent and have more availability to credit to buy and rent. >> very important. and it stopped unemployment from rising. and then let the economy stabilize. >> buying time. >> a great central banker buys time to get the policy right. that's what it does. >> another kind of narrative buster. this drop in energy, you know, hey listen, everybody has cars that get three times more miles

per gallon than 25 years ago. is there anything in our economy really that doesn't use energy? >> no. everybody talks about the pressure it is putting on possible fracking. it is also going to put pressure on the solar industry. >> competition is good. i don't care how you slice it. when they complain about it it is even better. back to you. >> busy day rick. let's send it over to jon fortt. >> we're getting folks ready for black friday, whether going to the mall or sitting on the couch. kara swisher is talking about that and uber and other things going on. we've got the ceo of ethan allen for all those out there eyeing furniture. and bubba morocco talking about mobile's influence on shopping and a lot more. "squawk alley" coming up. tune in. what do i do? you need to catch the 4:10

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able to best predict when we need to restock kitchens or bathrooms with the basic and what your basics are so they can auction off that information in real time to the highest bidding consumer product supplier. weighing in an analyst. at the heart is google express of course. a lot of viewers won't be aware what they are doing there. but they have expanded the number of cities they serve. >> it's all about data. and getting data about consumer shopping behavior. they are now in 10 cities and the partner with about 30 different retailers and it's same day e-commerce offering. you order items and they send and deliver it to you same day. >> they are charging $95 a year. $10 a month. i think they are subsidizing what's going on here. >> >> there is some subsidizing and the price -- show the prices

on google express by about 15%. so they are doing some subsidizing but also are making a little money on the pricing differences. >> and whereas the end game here? >> it's data. google wants data about consumer shopping behavior. they want to know the exact pampers that you buy. then they can estimate. they usually have about a 30 day life span and on day 28 they can serve you the ad. and there is much higher conversion. the movement to big data and understanding somer behavior is bigger and bigger. google is trying, amazon is trying to get their hooks deeper in you. all the big e-commerce players want data about consumers. >> good to see you brian. >> happy black friday.

it's time for "squawk alley." >> good morning. 8:00 a.m. on valley fair mall in san jose california, 11:00 a.m. on wall street. check this out. >> the dark side. and the light. good black friday morning to you.