overdue. "squawk box" begins right now. but it also sounds -- correct me if i'm wrong -- that you're concerned figuring how to pay for all of these new citizens? >> i think it's long overdue. good morning, everybody. i actually believe we can pay welcome to "squawk box" on cnbc. for it. my sense is foreign-born i'm becky quick along with joe citizens create and contribute kernan and andrew ross-sore kip. in a dynamic way to our city's here are the three big stories economy. when you look at the number of we are watching today. entrepreneurs who are stocks are on a big winning foreign-born, the number of streak with the dow closing in individuals who come to schools in atlanta like emory on 18,000. november seeing the strongest university, georgia tech, the job gains in 35 months. atlanta university center. but could good news actually be we want to send a clear signal bad news? we sure hope not. that we want them to stay. we'll get reaction to friday's employment report. so i believe that the economics actually work out to benefit investors immediately reprice cities, benefit the nation's expectations for the fed rate metros, and create a much more hike from june to september. and while we were sleeping dynamic u.s. economy. there, were a number of key >> mayor reed, no argument here. economic reports out of asia. obviously it is a part of our china trade data was weak and heritage. japan's third quarter gdp showed it is a very important part of a vibrant economy, as you the economy was in recession was mentioned. but how do you pay for the revised even lower. services for these new people eunice will be joining us from coming in? beijing in a few minutes. oil prices are the big driver for the markets right is this something you'll talk now. about how to come up with the morgan stanley cutting the resources? >> what we want to know today is

forecast for brent crude saying oversupply is likely to peak in who's doing it best. the second quarter of the next and candidly, new york really year. those prices are looking at a was doing the best work in this near five-year low. and the worst case scenario, brent could fall as low as $43 space. we're in a good position from a in the next six months. that's something to be watching. budget point. andrew, over to you. thank you, becky. on a cash basis. good morning. we have corporate news this morning as well. here are the stocks to watch. reaching near-record levels. the first one out of the box is i'm comfortable we'll be able to merck reportedly in talks to buy absorb and pay for the costs. cubist pharmaceuticals to make and i'm also confident that the antibiotics and they will pay entrepreneurs coming with roughly $7 billion. foreign-born citizens and that's more than 34% premium. immigrants will more than contribute their fair share to also in other drug news, bristol atlanta's economy and make this something that we can do and i myers squib says a high rate of think it's the right thing for the future of our city. hodgkins limb foe ma patients responded to a new drug that >> i have to admit, i didn't helps the immune system fight realize that you had the city with the second fastest growing blood cancers. foreign-born -- this was a small early stage >> by percentage. >> by percentage. trial. i had no idea of that. the immunotherapy drug also what's drawing that in? why atlanta? >> well, i think because we have showed positive results one of the most dynamic following prior therapies data from both trials presented at a economies in the southeast. not many folks know it.

medical meeting this weekend. but the gdp is about $295 we'll have a lot more on these deals and stories in just a moment. then in media news, cbs and billion. it's bigger than 33 states in dish reaching a multi-year the union. carriage deal coming just hours so we have the ninth largest metro and it is attracting after cbs pulled the programming foreign-born citizens certainly over the last ten years. from the satellite provider. and we abt over the next ten terms of the deal were not years that we're going to attract even more. disclosed. and this morning a dutch court is banning uber in the and the state of georgia is in the top ten states in terms of netherlands in if the company doesn't stop providing service the number of immigrants who there and will face a fine of would be impacted by the more than $12,000 for a violation. president's executive order. meantime, new delhi is barring all of those factors are the the ride sharing app and the reason i'm here today so that we temporary suspension comes after can respond in a thoughtful way an accusation that one of the and absorb in a welcoming way drivers raped a passenger over the weekend. in a statement, uber's ceo says these viindividuals into our community and economy. the government doesn't require >> it's a little bit off topic, background checks of commercial but it's a weather question given that we're having drivers and the company will apparently some kind of big new work with the government to polar vortex coming our way at least up here. last winter you had your own troubles. establish that procedure. >> it was tough. that's the story in "the

huffington post" this morning. that's not where i first saw it, >> a bit of a critique. i was curious how you'll be but i think they are also launch approaching this winter? >> i will be approaching it by ing it -- it will all converge. getting out of here and going home and being available and working in partnership with our governor. the bottom line is that we are on a much more aggressive footing in terms of our preparation for severe weather early stage one, but numbers events. i feel reasonably good that like 80%, 88% response that we're better positioned than we were certainly during last year these blood cancers have and that we will have a much higher level of cooperation and lymphoma, which are like liquid tumors, if you will, but also coordination between the city, the state, and our metropolitan they have shown prominence on solid tumors as well, which area which is made up of seems that cancer, we have multiple jurisdictions. talked about it before, cancer >> the falcons are going to cells, tumor cells release freeze their butts off tonight. something that blocks certain >> we have a dome for that. cells from being attacked by the >> but how many points do you immune system. if you block this thing that the want if you were -- will you cancer cells -- >> you block the blocker, yeah. actually take the falcons? >> you block the thing that >> falcons always have a chance. blocks the immune cells then -- of course i'm going to take the >> then your body attacks it falcons. we're going to go to new orleans itself, yeah. >> but some of the numbers were and beat the saints pretty soon.

so i'm taking the falcons. incredible. but there are -- these are no question about it. safety trials and there are some side effects that are not great. >> packers are 6-0 at lambeau but this is pretty exciting field this year. >> yeah, whatever. news, actually. who knows, it may be more than just a lymphoma or hodgkins i'm the mayor of atlanta, man. i'm with the falcons. story. it may help in other cancers, >> hope springs eternal. >> i didn't say i was betting. which would be good. i just said i'm with the let's get a check on the markets this morning. falcons. as we mentioned, you're looking >> you have to, i understand. at the markets setting on new >> mayor reed, thank you very highs for the dow and the s&p much for joining us today. 500. this morning there are some red >> thank you for having me this arrows. you can see right now the dow morning. >> i don't know, man. futures are down by 37 points. s&p futures down by close to 5 aaron rodgers -- >> i thought for sure you were going to ask him a "walking points. the nasdaq futures are down as dead" question. >> yeah. that must have been -- that was well. the nasdaq ended the week after a tough time for atlanta. six weeks of gapes last week so it's looking to start a new but he managed through that. record this week. we'll see what happens. a good mayor will do that, in early trading in europe, there were decent numbers out of manage through whatever is thrown at you. germany to show the economy is i don't think that really not as bad as we had expected. happened, actually. maybe things were improving a i know that. when we come back this little bit, but still red arrows there as well with the dax morning, auto sales are back and americans are spending big down .40%. bucks. sales of expensive cars surging. the cac in france is down phil lebeau has that story. by.60%. and the ftse in london down plus the effect of plummeting

oil on tesla's sales. by .70%. the nikkei closing higher will cheap gas kill the electric car? stick around. take on the challenge of trading options and futures... despite the news that showed that the gdp numbers were worse than we even expected coming out of japan. the hang seng also closed slightly higher with the shanghai close to 3%. oil prices are another big story this morning. brent looking like it is down around five-year lows at this point to 67.69. wti is down by 1.6% this morning. 64.72. you are looking at wti below $65 a barrel. check out what is happening in the bond market. right now the ten-year note looks like it is yielding 2.326%. if you're watching the currency with the easy-to-use suite of trading tools... markets right now, the dollar at at optionsxpress by charles schwab. least at this point looks to be and we'll give you a one hundred fifty dollar up against the euro at 1.2247. amazon.com gift card when you open an account. if you're looking for a trade idea, start at the idea hub... it's down against the yen, where options and futures opportunities are organized by volatility, earnings, market activity and income strategies. 121.16. and gold prices at this hour look like they are up by a about $4.60. then run your new idea through the trade and probability calculator to get a quick look at the

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discuss the economic goals for 2015. they are going to be drawing up a blueprint. it's a closed door meeting to happen every year, but the results are not announced officially until march. at a big communist party. a lot of times we get leaks from the closed door meetings and people are hoping to see a gdp growth target leak. and that is mainly because economists are very concerned about where the economy is headed or hoping that the -- or at least expect the leadership to lower its growth target for the year to 7%. now, while all this badness is welcome back to "squawk going on, there was actually a box." americans are buying cars again huge rally in the stock market in shanghai. for the first time in several and they are buying expensive years, it crossed 3,000. ones. phil lebeau is joining us with and a lot of this is because new i did data. it's just kind of interesting >> this comes to us from true because investors are expecting car.com. we are on the cusp of a major the government to come in and save the day with extra stimulus milestone. americans are on the verge of so people are piling into the market. that's what is going on over buying at least 1 million

expensive cars this year. what do we mean by expensive? here. >> all right. take a look at sales of anything eunice, i always like that shot. $50,000 and up as the average it's very high-tech behind you. transaction price. their sales this year up 30.8%. and it's also never empty, compare that with models priced either, no matter what time. under $50,000, sales of those eunice yoon, thank you. vehicles, those mass market >> yes, big traffic. vehicles, up just 4.1%. >> things are happening. so what's driving the demand for we know that. you passed us. these expensive cars. china passed us in population. ultra luxury models. and as a result we're seeing i don't believe the gdp passing because it's a bigger total greater demand. output but a lot more people. high-end suvs. also sales growing there. >> it's like capita. you look at things like the >> it is not apples to apples. >> they do have more people. cadillac escalade or yukon >> i have heard that. i haven't been there. denali. finally there's the tesla model i don't know. i don't think that they, that s. and the model s which has an "people" magazine has checked average transaction price of every person over there for how $93,000, it's on record sales in sexy they are. i don't think they do. the u.s. in the month of if you don't look at 1.6 million september. the most recent data we have for people or 800 million, whatever tesla. look at the breakdown of it is for men, i just don't high-end vehicles and how the think that it's a real -- who is sales have done this year. the guy? anything priced between $50,000

thor? >> yeah, thor. and $75,000 up 32%. what is his name again? >> thor's brother is in "the then if you thought that's got to be it. anything over $100,000 sales of hunger games." >> they call it symmetry. those models up 17.2%. >> did they interview you for the -- and as we take a look at shares >> i didn't get a phone call. of tesla, we're pointing this out because the tesla model s >> once you are the sexiest man which has a transaction price you aren't again, right? average of $93,000, guys, it's >> i think you are the sexiest not uncommon to find people who man forever. are buying a model s for over >> has george clooney been on a couple of times? >> you have to bring that up $100,000. the bottom line is this. with the market. the demand for these expensive a lot of people are writing cars has never been greater. about him that it's over. that's where the industry is he's a whiner. pushing right now because those >> because he's married? are the greatest margins. >> no, because he's whiny and -- and clearly people can afford this because of 0% financing and leasing which is incredibly >> he's been in the spotlight for a very long time. popular right now for these the market buzz story of the higher end models. >> would a loaded explorer be day. under 50,000, do you know? gasoline prices falling. >> no. not if it's fully loaded. if it's fully loaded, it's close the regular price of unleaded is to 50,000 or more. and the base model starts far lower. but what we're talking are the average transaction prices. $2.72. a dollar cheaper than the all of these high-end suvs, the

average back in may. and a new survey of economists full-size suvs, you're going showing the view of the national over $50,000. association for business easily over. >> like a navigator or something economics says it expects the or an escalade or denali. fastest u.s. economic growth in a decade in 2015. and two big reasons, we have a 65, 70 probably. stronger job market and also the >> absolutely. falling oil prices. so germany had something >> i would think a cherokee positive again, right? loaded is probably getting close did you see that, some kind of to 45, anyway, right? >> absolutely. cadillac escalade this year, industrial -- the second month of growing. sales up 32.6%. >> october and november things look better. that's what we're seeing with so maybe the german economy is a all the full-size suvs on the little stronger than we have been giving it credit for. higher end. >> okay. stick around, phil. >> but then we had other things don't go anywhere. we're going to continue talking that weren't, emerging markets this time about tesla. don't look that good, right? will sales of the electric car >> that's because of the dollar. drop off as the price of oil the dollar's resurgence poses a plummets? joining us now is ben callow, threat to emerging markets, plus senior research analyst. we put the question to you, ben. last week's oil market. >> that's three days late. what do you think's going to happen? that was the wall street >> so, we don't think that the journal's lead story on thursday or friday and we talked about demand will be impacted by gasoline prices right now. it. from the last segment you see that's the news peg. >> there you go. here the car average selling the dow is on the verge of

price around $90,000. scaling the 18,000 market. stocks getting a bit of a boost we don't think consumers are from the november jobs report on friday. that pushed the dow and the s&p pencilling out gas prices in 500 to record closings. their purchasing. joining us right now for the they buy more for the monday morning strategy session, performance, its reliability. rich stineberg, president and and for the brand which test laz chief investment officer of has become an aspirational stineberg global asset ability. management and covering the the >> that becomes the question. is tesla put in a category economic angle, maury harris. relative to anybody else who is what did you think of the jobs trying to pursue electric vehicles? >> i think so. i think because of its numbers and what does this mean for the fed? >> well, the job numbers were technology and the range advance much better than anybody expected. it has, it is put in a separate and remember the fed is expecting the unemployment rate category. at the end of this year to be i think tesla has built this cult around its buyers where between the 5.9 and 6%. it's really become that and it's already at 5.8%. aspirational vehicle. and, you know, you see reports easily the up employment rate is going to be coming in next year like consumer reports that are most recent rating gave tesla less than the fed expects. one of the highest ratings all of which suggest to me that the fed is going to start again. and so i think people are buying tightening in the middle of the it for the performance, the year. you can see the first tight luxury, and the attributes of anything happening at the june electric vehicles. >> we've got to go, but if you meeting. >> i know the expectations had been for september, at least think of tesla as a battery that's what the markets were company in terms of what the

stock price is and the saying, but really conventional underlying valuation to the wisdom is june anyway. extent you think there is an were you swayed by any of this or were you on june anyway? underlined valuation given the >> we were on june anyway. price, do you worry about where oil goes in terms of price? our models have been suggesting that payrolls would be going up >> no. it's not really correlating with around 2.30 a month and the oil. we're looking at natural gas prices here more as a unemployment rate would be in the middle area by june. correlation. >> okay. >> so oil's not correlated in whether that was the core the long run. >> okay. inflation would pick up closer thank you for joining us this to 2% and everything would be in morning. phil, of course, thank you. order for the fed to start when we come back this tightening. >> if that's the case, rich, morning, more on the deal of the what about you? what do you think the market had morning. merck buying cubist been anticipating? pharmaceutical. plus management matters. and does it concern you at all a look at companies reaping the or are we really in a situation where good news is good news? benefits of solid leadership. that's next. [woman] can it make a dentist this is what we want to hear and the market is okay with that? appointment when my teeth are ready? >> good news is good news, becky, but the markets are starting to price this all in. [girl] can it tell the doctor earnings estimates are starting how long i have to wear this thing? to trickle down for next year, yet investors have to brace for [man] can it tell the flight attendant to please not wake me this time?

single-digit returns next year unless the stars align and the the answer is yes, it can. stronger growth starts to push the eps earnings higher. so, the question your customers are really asking is, >> rich, when did you grow a can your business deliver? beard? it hasn't been that long since we have seen you. >> this is what joe calls my decem-beard. i only do it for the market gods to be food for the next year. >> god almighty, that's a beard, man. >> when did we last see you? >> yeah, that wouldn't work for us. >> two weeks ago. this is just -- >> you grew that in two weeks? >> yep, since december 1st. >> if he doesn't shave six times a day, it looks like that. harry rob lowe with a comb stuck there already. that's frightening. >> so the one thing i would tell you about the earnings issue is, just since september 30th, re earnings growth for next year has fallen from 11.8% to 8.8%. when you look at revenue growth for the s&p globally, 69% of that is in north america, mostly

in the u.s. 13% is in europe. and 10% is mostly china japan. so unless the markets pick up globally and the news gets less worse, it's going to be tough for earnings to get above 130 next year. so not a lot of upside unless the earnings really pick up. >> the front page of the wall street journal says this morning that global growth looks much better because of all the tumbling oil prices. is that factoring in all of that? >> yeah, but the data isn't showing it with earnings right now. the key question is going to be there's been a 20% downward revision in the energy stock earnings. that's the highest downward revision since 2009. the s&p is trading in its high est estimate in pe since 2005.

energy is 9% of the s&p. so unless the input people that are taking in lower energy prices can really drive economic growth higher, it's going to be tough to get higher markets in the short run. >> maury, let's talk about that, though. the protect of lower oil prices, the prospect of the stronger dollar, how does that play out in terms of what you're looking at for your global predictions of growth next year? >> well, you've got prosperous the march to 18,000. right now. there are signs of soft economic will it happen? growth, especially out of asia we'll find out how long the and still out of europe. bulls can run and where you so you've got cross currents. should be putting your money to work now. with this drop in oil prices, retailers crushed. why the retailers are selling at your forecast should be higher a discount this holiday season than it would have been say two and is it a sign of tough times ahead? to three months ago before the a closer look at the sector and what to expect in the final oil price numbers with the oil weeks of the year. prices going down. and merck buying cubist. i think we're going to have a healthy year next year. it's the latest in big pharma we have forecast here at ubs

3.1% gdp growth. details. we'll have details and street i do think that people might be reaction as the final hour of "squawk box" begins right now. ♪ going a little bit overboard on how much good the lower gasoline prices do for you because we've got to remember that as we welcome back to "squawk box" become less dependent on foreign here on cnbc, first in business energy, the decline in an oil worldwide. the new drug we're talking about price doesn't do you as much i think would be a drug that good. because we start to have to consider more and more the works against some effects of the domestic antibiotic-resistant bacteria. producers. so it's still in that positive to have lower oil prices, but i hence the huey lewis song. don't think it gives us as much stimulus as it would have, let's merck paying $8 billion for say, ten years ago when we antibiotic maker cubist. weren't producing so much of the stuff in this country. that stock is up sharply on the >> hey, rich, just in general, news. we're going to be speaking to barbara ryan, a big pharma like i can mention ten reasons consultant and analyst and cnbc to buy stocks and i can't really contributor in just a couple of mention any not to buy. minutes about the deal and what i mean, that really makes me it all means for merck. nervous. just in terms of all the good and for antibiotics. and we'll talk a little bit about some of the news that's news is out there and, i don't come out in the cancer -- war know, it just seems like it's just too good. against cancer as well.

positive developments. the goldilocks, it's like anybody can look at it and say, mcdonald's sales are out. >> take a look at this. i'm going to start buying stocks >> not good. which makes me think this is >> that stock which is a dow component is under pressure. where the smart money hands it right now i'm looking at off to the bag holders. somewhere around 94.73 after >> welcome to my inner conflict. that stock closed at 96.31. this is the big issue right now, you can see 95 is what it's joe. the problem has been investors trading in the early hours. have been conditioned since 2008 they miss on almost every metric. global comps, down 2% last to oversized returns and i think it's okay to have low returns month. that was more than expected. if you're looking at the u.s., going into next year. >> but single digits, rich, it's down 4.6%. not just going to sit there and that is a much bigger drop than go up a half percent a month. it's going to be all over the expected. europe down 2% as expected. place. it's going to shake out some of asia pacific, middle east and the complacency -- >> a lot more volatility. africa down 4% which is broader than expected as well. >> which means we could go down the expectation there was for 10% to 12% before we do down 3.8%. so clearly it is the u.s. comp something else. then you do have that inevitable store sales that are going to be rate increase coming. the big issue. >> did you see -- i don't know if i believe -- my >> it's going to be off by work last week, i used a pii double. >> they said cut 7 to 10 cents algorithm to figure out the exact number, 3.14 -- 314,000 -- by a supplier in china and also

cut 7 to 9 cents by a i don't know if you saw the show but i nailed that number with my strengthening of the dollar versus all foreign currencies. work. and that -- if that continues, >> so that's going to be another big issue for them. which i can't believe it will, but i think all of that is that will get the fed moving quickly and it will be quicker secondary to the u.s. comps. down 4.6%. than anyone thought if we keep going 300,000 plus. that's scary, isn't it? that speaks to the troubles this >> well, if that's what it would chain has had. >> simplifying the menu by take to get -- because this fed allowing you to order anything has been very cautious. you want. to get them to start moving >> which doesn't make sense at all. >> to me simplifying, you're before the middle of the year, doing the work instead. that you need to see your pi, that's a move towards automation. there were people when we started talking about the minimum wage increase who said complete itself and assert you will see this happening in fast food places and other itself a few more times. but keep an eye on the core places, the move towards inflation because the fed wants to see the core inflation automation. you can order it yourself. heading back up to 2%. now they're going to give you a i think it probably will. kiosk and tell you to do it until we see that, though, you yourself. >> i guess a strong performance don't want to get premature on in the uk, but totally offset by the fed call. >> okay. the fed call and the complacency something. which i can't get. we're going to talk to an analyst, though, in just a couple minutes about the mcdonald's -- >> the uk, the performance in call. the uk was more than offset by

>> leaiesman has to lookout for his job now. >> that's always the case. very weak results in russia and why now? >> you're nailing the numbers. negative results in germany. >> down 2.5% now. you may have to -- >> that was a joke. actually, he does -- he has i bet the futures might be reflecting that on the dow as things that he does to arrive at a number. last time i drew a smiley face. this time i did pi to 80 places well. >> we're going to flip that around. just because i don't -- i'm not going to play that. i don't know, why guess at in part of what we saw earlier the -- it's like a game show. over the weekend overnight in terms of what happened in asia sort of a stick. and japan. among the other headlines we i don't join. should talk about this hour, thank you. morgan stanley now cutting its good-bye. forecast for brent crude. saying over-supply likely to maury -- >> beginner's luck for you. peak in the second quarter of next year. >> totally. it's worst case scenario, they it comes every month. what am i going to do next time? say brent could fall to $43 in >> i don't know. coming up, hot on the the next few months. we just had an analyst on that was telling us $65 was their hogwarts express, christmas is gamble. gas prices falling to four-year coming early for "harry potter" fans. lows. the average price for a gallon and have the nation's biggest stores been naughty or nice? find out if the holidays are down to $2.72. enough to reverse deep losses

now a full dollar below the price in early may. for retail stocks. and in washington, congress "squawk box" returns with all that in just a moment. nearing a spending deal to avert e a shutdown following a weekend of talks. politico reporting that house financial noise senate negotiators are talking about a spending bill. you can bit $1.1 trillion, you financial noise can't even figure what's inside there. also if you haven't read it this morning, take a look. there's a story in today's "wall financial noise street journal" that might have you doing a double take. reporting some banks are now urging clients to take their cash elsewhere. they're saying leave us or you can face new fees. financial noise you might say why is this? new regulations mean that jpmorg jpmorgan, bank of america, and others are finding some deposits aren't worth it because the rules make them less profitable. they have cash from clients like large companies and small banks, that is the group that they're saying we may not want your cash. the change is notable because deposits have been a growth engine for financial giants. part of what's really driving

this is some of the new regulation. and companies in a crisis are likely to pull that cash quicker than everybody else. joe? how much does sweep level management really matter? let's look at a few companies and how they've been fairing. starbucks up 310% since howard shultz returned in 2008. walt disney is up since bob iger came back. and apple is up 115% since tim cook took over in august 2011. is tracking a company's performance the best way to rate effective leadership? joining us now, associate dean at the yale school of management. and former professor at harvard business school. both jeff and bill are cnbc contributors. stock price is one way to go,

isn't it? but i bet you can find other ones that might not be as obvious that could be just as important. >> if you look at the long-term, definitely stock prices. but you've got to give them a long shot, five years. frankly if i were an investor, i would invest in the leadership. when howard came back, look at what happened. tim cook has added some $350 billion in value. everyone was skeptable about tim. should spend more time looking at who the leaders are and less time listening to all the governance gurus out there. if you get the right leader in these companies, you get great result just like you heard earlier. >> bill, i remember stan o'neil and others saw how much money the central philippines saw could be made in mortgages by heavy downpours due to the other investment banks. for five years their stock went typhoon. some people waded knee deep crazy as they did that. through water. the typhoon weakened today and you know what finally happened. i mean, there's more -- a stock

now it's more of a tropical storm at this point leaving three people dead and sending price increase can be not long more than a million into shelters this weekend. lasting. it can be -- in fact, sometimes heavy winds created the risk of if someone -- if the ends justify the means, it might even la landslides and flash floods. be a bad thing. to today's forecast here at >> yeah, you're right, joe. home, is there -- i heard rumors of a nor'easter? i think you've got to look beneath the surface and say what are they doing? >> tomorrow, maybe? do they have a sustainable >> is that true, keith carsons? business model? look what bob iger did at i've asked you before, focus on disney. first of all, he brought steve colorado and here you are. we really don't appreciate snow jobs on bother and brought here, keith. is it too late to ask you to pixar. then he bought marvel and lucas. move it out west? and he's got the hot hand right >> no, but there's a storm for now. what he did is delegated to them. they will get snow later in the week. so everybody kind of wins. those guys. the interesting thing is there's and let them take over the a nor'easter coming, but it is disney studios. it was more abundant and turned not what you picture. it is not an all snow event with it around. that's the wisdom of leadership. an upper-level disturbance up to it's not just about playing the game like o'neil did. the north and another to the south. the two of them will join together. and it's already happening. >> okay. so -- and then, jeff, i mean, by tonight we'll have a low pressure system offshore. could you make the argument that this is usually the beginning of the part where i tell you it a cautious ceo that's worried will snow a lot in places like new york to boston. about, i don't know, societal but this is an inside runner in concerns and maybe doesn't take

certain chances that could the meteorology world to the backfire if the stock stays stagnant, is that the kind of west to allow warm air to be ceo you want as well? i guess you want someone who can drawn inland. walk in between these two the major cities could see a few flakes on the backside of this issues. but we are mainly looking at >> yeah. you're right, joe. rain. don't be disappointed that this here's a better look at it tomorrow through wednesday. time bill george and i agree. this is where you'll see rain, i'm sure we can find some way to boston, new york, philadelphia, kick up a harvard/yale issue if washington, d.c. then farther inland with the 32-degree line, you're looking we have to. he's right. at accumulating snow. these are the exact people to so if you're south and east of celebrate. people like michael dell to this this line, you're fine. you may see a few flakes but it won't be nice. the real snow is going to be list. back here. here's a look at the snowfall but bob iger, howard shultz, forecast through wednesday these people are remarkable. night. the world is different because the storm may actually last through thursday, but through they have lived. wednesday night we're looking at they've had an impact. but these short-term metrics, to big snow. upstate new york and the ski areas in colorado, the ski areas have a one year and three-year across upstate new york, they yardstick for judging will see 12 to 18 inches of performance. snow. vermont, new hampshire, maine, it's ludicrous. that's where most of the snow you want to take a look at it is. then stretching back here to over time. central parts of pennsylvania you look at andrew and he took down to around 3 to 5 inches. you are not going to see flakes the look still being stocked. in new york and boston, but i'm very happy about that.

that's probably on thursday as the storm system departs. they've worked that through these are areas to watch more pretty well. you take a look at nelson peltz specifically, northern new england and western parts of new york, buffalo, places that do going. eisner, there was a lot of not need more snow that will be seeing it. skepticism when he took over take a look at new york, it's not pretty, 44 degrees. from bob. heavy rain and winds. wondering if he wasn't. and then on wednesday, the the best thing he did was to chance for rain again and the snowflake chance on thursday. criticize and almost trash bob morning snow showers as the system departs. iger in his book. after that, our focus will then it gave him a sense of shift to a storm system on the liberati west coast to give you the liberati mountain of snow. liberation. but it's important. and also, california, a place that couldn't buy rain for a year, is looking at 3 to 5 authentic believable business inches of rain. >> keith, have you actually joined the sweater of the month? model. but courageous risk taking. i think that's right with this the sorkin sweater of the month? hoarding of cash right now. >> yeah, but they got the wrong size, as you can see. >> guys, i had a question. it's a little tooilt tighter than it needs to be. i don't know if you saw this. i'm trying to get into the christmas spirit. >> i like it. this a totally different topic but related to management and how now manage. it is not like you weren't i was going to ask this to bill. separated at birth, but that how you manage from the road. looks better on you than andrew. i don't know if you saw this

piece in "the wall street journal" posted i think late e he usually -- i don't know if friday agent the ceo of united you saw that, but do you have a technologies and why he ultimately got the ax or monitor there? >> i can't see it. i have to go back to see it. resigned. in part it was because he was >> you have to go back and look traveling all the time. he said traveling for work. because we have andrew animation occasionally he was traveling made. here we go, sorkin sweater -- when he was off checking up on a yacht he was building i think in taiwan at the time. but how do you actually manage what does that cost, andrew? from afar? >> we provide a different because most of these folks now sweater every month. >> do you get to send it back or think about the global keep it? companies, they're on planes all if you like it, you keep it. if you don't, you send it back. the time. in this case certain employees >> no, no, no. were going to the board saying if you don't like it, you keep we're just not getting attention it. >> why am i not surprised? from this guy. >> you've got to do both. it's a business model. you have to be present with all >> every other month is a your people at headquarters. but you've got to be out there with all your customers as well. sweater or just -- >> we do mock zips and v-necks. we do a couple crews and a i think joe made a good point. you guys just talked about couple cable. mcdonald's. they're staying in the old no cardigans. model. they don't know where they are. >> keith is listening saying, i was playing along, but this sounds pretty good. there really is no sorkin they need a total revamp. sweater of the month. we are kind of kidding around. what bob iger did at disney. you need someone to come in >> i don't know what the mock -- there and change the game.

i don't think the mock would if you don't to d.o. that, i work for me very well, but it is think coca-cola may be getting 70 degrees down here. i have to find a way to get themselves into difficulty. >> that's right. christmasy. this is it. >> i think that's the right size for you, dude. an you can't be running it from the padded seat inside your i'm looking at pecks and a flat office. this is a job where you have to be out there. these guys are traveling more stomach there. >> can you talk to my man, al than 150, some 200 days a year. roker? i'm on his show every day and he rips on me saying, hey, my kid calls and wants their sweater sadly that's where the back. >> i love that. al is good at that. constituents are. >> yeah, he is. it's diminished towards the end of your career, the variables that drive you for the first >> you got weather, we have business news. both of us have to try seven, eight, nine, ten years. something, don't we? we have to. >> it's a beautiful sweater. but accessibility, being out there is absolutely critical. >> it is. >> thank you, guys. >> all right. see you later. >> we've got to go. big news out there for harry do these guys in their personal potter friends. j.k. ruling is publishing 12 new life need to be role models? i remember the boeing guy. >> yeah, there's some reason stories in the runup to christmas. why -- >> there was a medical device fans can access this through her guy that was dating someone. harry potter website starting on he had to leave. i mean, does that all play into friday. the readers will be treated to it? not you, bill. daily stories about the

adventu >> joe, you're right. >> they have to live by certain adventureous wizard. rules. >> you're a public figure. >> do yo have to be a member of like it or not, you're a public this paid website? >> i don't think so. figure. you've got to be a role model i'll find out. >> like the sweater of the month for all your people and customers. club. i would think that j.k. ruling if you don't, you're asking for could make a sweet little -- trouble. >> no hanky panky, no dwis, none >> this could be a tease to something more to come. >> maybe that's how they are going to do this. of that stuff. >> wait a second. you do have to sign up. dungeons, none of that. i don't know if you have to pay but you have to sign up. >> we'll find out more in a 110 foot boats. moment. in the meantime, the duke i remember that. and duchess of cambridge are who can forget. visiting the states. >> only ellison gets away with >> it's free. yeah. that. >> wherever you go around the >> it's free sh everybody. no worries. prince william is meeting with world, wherever you look at a president obama in washington towns square, village somewhere today and to atend a conference there's going to be monument. at the world bank. it's not to a committee or board then heading back to new york for a reception honoring of directors. it's bold thinking individuals. conservation efforts. >> but in europe if you don't meantime, his wife kate will spend her day in the big apple have a mistress, couldn't you be touring a child development fired for that sometimes? no. kidding. that's a joke. center. both want to catch the that's a joke. i love europe. nets/cavaliers game. love all of you. >> really? love everybody in the eu. >> yeah. >> i like them, too. thank you, bill. i do. and i like his little brother. there is a little bit of a different viewpoint. look at --

i was kidding at the top of the show, although there's a little bit of -- i said that the brits >> thank you, guys. when we come back, mcdonald's have the royal family, william and harry, and we have the seeing monthly sales slump more than 6% this year. check out what's been happening kardashians. which -- they would agree with to that stock. it is under some pressure. that over there in a lot of the comps were down by 4% on a europe. that it is fitting for us. global basis down 4.6% in the that's our -- answer to the u.s. and that is a huge concern. royal family. coming up, move over burger we'll find out if the big mac king. mcdonald's wants consumers to can make a rebound on wall street when we check in with an order burgers their own way. plus retail stocks are analyst. looking like lumps of coal in still to come this morning, the investors stocks. dow's march to 18,000. we'll see if there's any chance we'll talk end of the year of a turn-around before santa outlook with phil orlando. and then ugly sweater themed checks his list one last time. first, as we head to break, a parties growing in popularity. look at last week's s&p 500 but there is a price to pay. we go inside the business of winners and losers. being ugly. ♪ we'll also have more on merck's deal for cubist. street reaction on this merger monday. "squawk box" will be right back. (vo) rush hour around here

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now we have mcdonald's posting worse than expected numbers. dow jones looks like it would open off about 50 points. let's drill down on the news from mcdonald's. the monthly sales falling short of what they're expecting. look right now you'll see the stock is down by 2.8%. joining us now with more on the numbers is rj. he is morningstar retail analyst. rj, the comps in the united states down 4.6%. that was much worse than expected. what do you think happened? >> yeah. to your point, i think that's good morning. really the number the market is going to focus on today. welcome back to "squawk box" on comes at a time when we've seen cnbc. i'm joe kernan along with peith a lot of traffic pick up at other restaurant chains. right now just shows that the brand is failing to resonate with a lot of consumers and much more aggressive actions are quick and andrew ross-sorkin. needed to get back and re-engage with those consumers. the struggling mcdonald's giant >> i guess it's especially concerning when you realize this is at a time when gas prices are is doing pretty well but they down and mcdonald's consumer was plan to announce a create your supposed to be more flush with cash.

we did see that from the wal taste test platform where customers can use a kiosk to smart shopper. why not not here? customize everything about the >> i think there's so many other burger. options that are more compelling name the type of bun, cheese and in the restaurant space. it's up to mcdonald's to what kind of toppings you like. introduce a much more innovative the mcdonald's shares have been platform. company is going to be out flat the last year. >> is this a move toward marketing some of the customization efforts. the choose your taste which automation? do it yourself? they're planning to roll out to >> it also makes it more expensive, more complicated with 30 restaurants over the coming weeks, i think that's a positive more ingredients, are mnd more step. it all comes down to execution and marketing of that. frankly the company's had some revenue. >> analysts say they need to missed steps on execution as simplify the menu. well. >> you can sort of do this, i it leads a lot of questions. want a plain cheeseburger with the idea is the right idea. just ketchup or something. at the same time and whether or >> i wonder if it's a move to not they pull it off was still a lot of questions behind that. >> at the same time you're also looking at a strengthening automation, do it yourself. dollar and the company is >> that's also like the domino's warning that it's going to be or pizza hut guy, 10,000 losing 7 to 9 cents a share ingredients and everyone wants because of the strengthening to customize their stuff. u.s. dollar against every other >> you would like to say, i want foreign currency. the hamburger with actual beef. what does that mean? >> certainly foreign currency given their exposure outside the 100%. remember some of the -- i'm not u.s., that's going to weaken the going to mention names, but

remember in the past they tested results here at home when they're translated into u.s. it -- which one was that? dollars. so i think that is one issue that you have to look at on the >> it was with chicken or fries. eps line. looking forward, that's probably going to normalize. >> remember they were -- the you're going to look at the people, they dropped the suit fundamentals in those regions. immediately because it was not true about taco bell. europe was slightly better than expected. but all you have to do is just given what they were lacking last year. the uk was a positive result. question it and people go, it's like the old corona beer rumor. i think france was weaker. that might be an area for concern. looks like asia was about what it was to be expected. >> i do know that one. especially with the china food >> the consolation of you supply issue. >> so what do you do with the stock at this point? arrived. that's from "apollo 13." >> yeah, we think shares are about fairly valued at current bill paxton -- >> yes! levels. you know, things don't look like we are children, we're sorry. they're going to turn around only a few more weekends before the big man comes to up overnight. so you have to have a long-term horizon. to. 17 shopping days remain until you get a nice yield for this. christmas. it's the perfect time for retail 4% at current levels. almost 4% of current levels. i think you get paid to wait. but at the same time there's still a lot of questions about sector nomics with morgan the turnaround here. >> thank you for joining us. brennan. >> absolutely. >> let's start with best buy. coming up when we return, jobs data sending markets into that stock is down 11 -- well, uncharted territory.

we're going to look at the we'll start with best buy down winners and losers of this bull 11% this year on track for the run and the march dow to 18,000. sixth straight december in the red. and online sales activity after the break, if you're crashed the website on black thinking of getting away for the friday. but the company says that faster holidays, it's not too late to online growth will cut into get a good deal. how you could save on flying this holiday season. profits it outsources. we're right back with that story in just a moment. gamestop down 24% this year. e and they say video games were a bright spot thanksgiving weekend but the retailer recently slashed full-year guidance. another one to take a look at, urban outfitters down 16% this year. that's on the flagship brand. analysts say it's the same story with the other retailers. the declining market share to those changing their lineup more frequently. this is something to keep an eye on. lastly, check out amazon with the stock down 22% so far this year. it's on track for another holiday season. but it's spending a lot of money on other projects as its core business slumps. that's an issue and is expected

to continue. the takeaway for the retailers, strong holiday sales likely to be offset by steeper details at the retailers. for the four stocks n particular, we have other factors playing out as well. back to you. >> thank you very much. the biggest shopping days of the season are still ahead for us. and the delivery deadline for online shopping is fastly financial noise approaching. we have the former ceo of toys financial noise r'us here with us. jerry, good morning. how do you think toys r' us is financial noise holding up? >> i'm sure they are doing great. they are a great company. >> okay, you are only going to say nice things. financial noise when you came here a week ago, we had the news that friday, the weekend was not as good down so if you get a trade idea about, say, 11%. and you said rubbish. organic food stocks, schwab can help. and it's turned out to be rubbish. with a trading specialist just a tap away. >> it is rubbish. it's totally wrong. what's on your mind, lisa? even this morning in the wall

street journal they repeated it i'd like to talk about a trade idea. let's hear it. again. [ male announcer ] see how schwab unbelievable. it's bad data out over and over can help light a way forward. again. sales are up 3% to 5% on black so you can make your move, wherever you are. friday weekend. and start working on your next big idea. >> it says something about the survey method, too. >> because it's a consumer ♪ survey, totally wrong. >> so people were happier that weekend than we thought they were, but cyber monday people were less happy, what happened? >> still up double digits but cyber monday has moved to black friday. so it used to be that some kind of special day was cyber monday when you go to the office to use the broadband internet, but everyone has that at home now. thursday and friday were just massive days on the internet. that was one reason why i was confident sales were up over the weekend and not down. when you got to cyber monday, they were up. it depends on the survey if it was single or double digits but it was hard to continue that forever. what's been happening year after year now and getting more extreme, the internet is growing consistently in double digits every holiday. the stores see the peaks and

welcome back. valleys, so a nice peak on black with christmas less than three friday. weeks away, it's not too late to most stores did nicely in the book that last-minute holiday brick and mortar over black friday weekend. vacation whether it's a getaway then past cyber monday and it is no man's land. or to relax. holiday travel deals are out it's desolate from cyber monday to a week before christmas and there still. kirk gregory has more. it will pick up again. >> is the holiday officially over then in regard to people are just going to -- this goes >> millions of americans will to the whole channel thing, right? >> well, it's an excuse to have travel by air this holiday a sale. season. so as long as you have it, they but travelers who don't have a ticket need to get busy. are going to have sales on that >> for travelers looking to get day. every retailer will also see good deals as we get closer to sales spike. today is green monday. talk about something not needed new years travel, if you haven't anymore as a marketing concept. booked your airfare, you want to >> what is it? book it as soon as possible. >> e-bay started it and the those are only going to go up in original idea was that was sort terms of price. of the last day to order and be >> orbitz says while prices on airline tickets are going up, confident through regular u.s. postal service to get the there are ways you can save once product in time for christmas. but now -- >> it's completely outdated. you've booked your flight. >> look for promotions that will >> now you can order a few days before christmas and guaranteed help you save on things like your checked baggage fee. orbitz for the second year in a to get it before christmas and a row is offering their zap that reason to have a sale. so there are a lot of values out bag deal where if you book your there today, so the question is what to check on. flight on orbitz, you can use

if there's a lot of good sales, their app to take a picture of you could have great high your checked bag receipt. numbers in sales dollars. >> this is out over the weekend in "the new york times," they that $25 receipt when you check your bag, submit it through the wave a demonstration of injustice sweeping through the app and they'll credit you $25 holiday season since the holiday into your orbitz account. >> and codes for hotel discounts shopping has begun. the retail sales numbers are are out there. disappointing but the media >> looking for alternative ways outlets are treating them like to save is really going to be how travelers are able to save a few dollars here and there. >> and there's more good news events taking place on two for holiday travelers. different continents, >> whereas over christmas specifically with them there's the mix of people going home to visit family but also a boycotting stores on black lot of people who are taking friday. should we put them together or those week-long vacations. not? >> well, that article also sop your volume headed to the airport is a bit more spread out talked about the basic premise so you don't tend to see as much flawed from the beginning. congestion as at thanksgiving. certainly, it's micromarkets. if you go to ferguson, that >> it could make a great holiday retail sales were off in that area. and they are occupying macy's. vacation even better. nbc news. up next, our dom chu will be so the sales were off. along to walk us through the if you look at the entire u.s. market, that has no more effect winn on it than a fleeting snowstorm. winn winners and losers of the dow

is. plus ugly sweaters, there's big >> is there a greater surprise for you? money to be made. >> it is not a surprise, it's and some of those crazy odes to something we should know, but the internet continues to grab christmas. that is straight ahead. share at a startling rate and is "squawk box" will be right back. not slowing down. and take a quick look at the store traffic is off sharply. u.s. equity futures under pressure from the get go. fortunately, store sales are not mcdonald's not helping that. off as much as traffic. right now the dow futures down those who go to the store have by about 50 points below fair pre-shopped on the internet and go to the store with a mission value. s&p futures off by five. idelitye in mind. but that shift is entering at an and you'll see just how much it has to offer, ever faster rate, which is why especially if you're thinking of moving an old 401(k) we have discussed on the channel model is the one that the bricks and mortars guys have to grab to a fidelity ira. it gives you a wide range of investment options... fast. >> joe is mentioning the sweater and the free help you need to make sure your investments fit your goals -- of the month. however, he asked if they were returnable and i said no. and what you're really investing for. however, the reason i'm asking tap into the full power of your fidelity green line. is we have bought a lot of stuff this holiday season already. a lot of which some of we plan call today and we'll make it easy to move that old 401(k) to a fidelity rollover ira. to return. what is the cost of returning an item online? actually, it must be higher than returning it at the store, am i wrong about that?

>> you're going to pay for that, right? >> it is passed on to you, but now you print out the free shipping thing and send it right back. i'll do multiple sizes and send it back, but i want to understand -- >> you're on to something really important. the online retailing is more expensive than in the store retailing. i know there's a myth the other way around, but that's not true. amazon quarter after quarter does not make money when it is online retailing. digital goods, sure, you can digitize and it's cheaper to do it over the internet. but a physical good to pack it up and return it to your home is more expensive. inside the brick and mortar retailer, you will see the pure online operations have a lower return on sales an assets than the store sales base do. it is very expensive to operate a line. but the consumer wants it and that's where it will dpochlt this is one of the squeezing resources for retailers, but then you see the harmens squeezed and go, what is going on there? there's a negative arbitrage in

the profitability of sales done online and in the store. >> and therefore you have to bet on whom? >> the retailers really strong in doing this. one of the great things that happens is a lot of people return the goods to the store. when they come to the store, you can get them to buy something else and you have done a fantastic job. the retailers i love are nordstrom and macy's. best buy is doing a good job in a tough category. walmart is doing a spectacular job. >> who wouldn't you touch with a ten-foot pole? >> the teen retailers are toast. why? the teens are spending money on cell phone bills and don't go to the mall anymore to have fun. and it depends on what happens with gaming. they are in a good part of the cycle right now. i believe in the long-term, that will go online since 1998. anything will be digitized 100% on the internet one day.

>> sorkin, i've got to admit that you're scaring me because you're already multi-media, omni something or other. it wouldn't take much for the sweater of the month thing to turn into something real. if it does, i'm going to be really angry if you do present this. you don't want a piece? >> you can do it. you have the showtime thing and merck is buying cubist the deal book, it could be pharmaceuticals for $102 in totally internet based and don't share or $8.4 billion. need the brick and mortar at that's a 35% premium. all. with us on the "squawk" newsline >> and there's no blue slip. >> what if you go on "shark is barbara ryan. tank" to get money from those barbara, cubist already has guys? why not do sweater of the month? stuff that merck can use to add who would not want to receive a sweater? >> there's a slew of retailers doing prescription-based work. >> i want to focus on sweaters to their codery of drugs, right? and different brands. >> i have not seen that but >> right. merck has identified the there are other gifts for sure. >> you have the animation ready hospital care market as one of to go. you are not above going this. their four focused areas.

you aren't. and so it's very well there. merck has been growing 10%. i'm already e-mailing this. and what cubist brings is when we come back, $61,000 for a truffle. believe it or not, we'll have details on that when we come obviously cubisan. back. stick around, "squawk box" will be right back. [sound of crickets] brii,brii,brii and one for gram negative sickness. >> close to getting approval. >> i think the date is december 21st. >> so what you just described is eight or nine times sales. so they must -- in the future, they must see some serious issues with drug-resistant bacteria. >> right. i mean, i think that many, many years ago as you know, many pharmaceutical companies walked away from the manufacturing products deals, you know, it had become kmcommoditizecommoditize.

and that gave way to a global problem with resistant infection. cubist obviously being one of the leaders, but we've seen other companies gain prominence. the medicines company. newly public company called paratex. and certainly there is renewed interest in this area if they -- as i said, a growing global problem. and the opportunity to treat a lot of these resistance infections like mrsa are, you know, significant opportunities for the industry and as i said, a number of companies have focused in this area and are creating significant value. >> you saw some of the hodgkin's disease. what are they pd-1 blockers, right? >> uh-huh. >> this can be -- in your view

is this something that might have a wide application and a real water shed moment? >> in terms of cubist? >> in terms of cancer. in terms of not only working on hodgkin's but maybe solid tumors. >> absolutely. i think that is one of the other four areas that merck is focused on with oncology agents like pembro. and the idea would be to look at those and a host of other [male narrator] we've all heard how military veterans cancers as well as combining adjusting to the civilian world them with existing agents. may have... i think you're going to see a certain... issues. lot more in this field from 2... companies like merck that have 30... already been focused there. but i think merck will, you 70... know, ratchet up its activity in the field as well. >> okay. all right. if only everyone had this issue. thanks, barbara. appreciate it. >> thank you. bye. no matter what challenge they face, and the dow is ever so close easter seals is here to crossing the 18,000 mark. for america's veterans.

another major milestone. the industrials first crossed the 17,000 mark back on july 3rd of this year. crude oil on that day closed at $104 a barrel. it's down close to 40% since then. here to dazzle us with more dow facts and figures or our stats man dominic chu. they sate stats geek in -- do you want to be a geek? >> i can be a geek sometimes. if we're in business news, we're all a bit of a geek at some point in time. let's look at some of the big dow winners and losers. since july 3rd, a lot's happened in the course of market history here. between 17,000 and 18,000 still well, if you think you've seen everything, think again. a big deal. this is a giant white truffle let's look at who you guys think that is selling for more than the biggest gainer has been in the dow. so one of the companies that's $61,000 at auction. driven the dow between 17,000 and 18,000. a little more than 4 pounds and the best performing stock in the slightly smaller than a dow is what? you've got your paddles. football. average truffle is about the size of a walnut. think about who the biggest

>> you know, hong kong, no less, because it was out last week and winner is. >> all right. >> becky says nike. said it was going to go for a million dollars and went for >> bigs winner? $60,000. that shows you the way the >> in the dow between july 3rd tabloids will just hype this and today. stuff. but that's a lot for a mushroom. joe probably knows all these already. >> what are we doing? >> $61,000? >> biggest winner in the dow >> it is. but you see restaurants -- you since july 3rd. >> that was the last time they get the white truffle, it's closed over 17. like -- >> when we went to paris, i you're proud, becky, aren't you? remember this two or three years ago, i told you this story, we >> it was in the prompter. >> oh, that's how you know? did truffles on top but i was not focused on how many. >> duh. >> nike. they did it by weight. and then the bill came at the >> here's mine. end and it was not good. >> i'd say -- how about reebok. coming up when we return, let's say you're correct. tablets, phones and now diapers. no. why amazon thinks selling their nike's correct. despite the fact becky saw it in own brand of items could be the the prompter, i think she probably knew about it. key to success. but nike has gained 26% since we'll have if consumers agree when "squawk box" returns. e july 3rd. the best performing stock in the dow. let's turn our attention to the worst-performing stock in the dow since then.

this is not in the prompter this time. >> no, but it is in i-news. >> this is not fair. i cannot play. >> i call shenanigans on becky right now. >> we don't do cheats. financial noise >> this is a game designed to make us look tupd. >> my guess was chevron. financial noise >> i didn't know -- >> i love the fact you still call it chevron texaco. i remember the texaco as well. financial noise >> see, i didn't know. cvx. i thought that was a drugstore. financial noise >> that's cvs. >> here's one more fact before we leave you guys, we know those boy: once upon a time, are the biggest percentage gainers. but in terms of who the biggest there was a nice house that lived with a family. point contributor to the dow's one day, it started to rain. thousand-point gain between 17,000 and 18,000, now you have the house tried to keep out all the water, to adjust for things like price. but water got inside

who do you think has contributed and ruined everybody's everythings. the most in terms of points to the house thought she let the family down. the thousand-point gain that we could see in the coming days here? they just didn't think it could happen. they told the house they would take better care of her... it's also one of the top performing stocks in the dow. always. announcer: protect what matters. get flood insurance. >> i don't know. >> just in the dow. right now, you can get a single line with 3 gigs for $65 a month. 3 gigs ... is that a lot? yeah? that's about...100 app downloads, 45 hours of streaming music, and 6 hours of video playing. >> i don't know. >> what was the question? (singing) and five golden rings! >> exactly. >> got to go. >> the biggest point contributor ha, i see what you did... (singing) four calling birds...three french hens... in the dow between 17,000 and (the guys starts to fizzle out) two... turtle... doves... 18,000 right now is visa. it's up a pretty decent chunk i really went for it there here and it's one of the biggest price stocks on the dow. ya you did... you really, really did so it's contributed about 300 now get 3 gigs of data on one line for $65 a month. points between then and today. not too shabby. >> not bad. switch to at&t, buy a new smartphone and get $150 credit per line. dom, thank you. >> you're very welcome. for more on the dow's rapid rise to 18,000, we're joined now by allison deans and here on set uh, and i know my iq. okay. uh, and i know-uh-i know what blood type i have. phil orlando. oh, wow! uh huh, yeah. i don't know my credit score. you don't know your credit score? --i don't know my credit score. we've had a couple of people say

that's really important. i mean -- i don't know my credit score. don't you want to buy a house...like, ever? so many things are positive but you should probably check out credit karma, it's free. credit? karma? they're all known. free?...so, that's... how much? might be either flat or at best that's how much it's free. credit karma really free credit scores. single digits. no credit card needed. is that your vee or not? >> we disagree. the multiple expansion we're looking at has had a phenomenal run. 11 times earnings back at the dad: yeah, 20 something years now. bottom of the market in '09. thinking about what you want to do with your money? we finished last year at 17 times earnings. daughter: looking at options. we think we're going to finish what do you guys pay in fees? this year at 17.5 times earnings. dad: i don't know exactly. so our forecast next year which daughter: if you're not happy do they have to pay you back? dad: it doesn't really work that way. is 23.50 multiples will get up daughter: you sure? to 18. corporate earnings we think are vo: are you asking enough questions in a sweet spot right now. about the way your wealth is managed? we're sort of mid, single wealth management at charles schwab. digits. we've got $130 in earnings next year versus $120 this year. >> how about you, allison? >> well, i'm not looking for multiple expansion. just corporate profit growth which i'm looking at 7% or 8%.

so it gets a return of 8% to 10%. my feeling is the market mu multiple is where it should be. >> both of you obviously fundamentals based. i mean, does sentiment bother you at all at this point, allison? the story's out there. we know now. we know about the energy boom. you know, we know that the u.s. is growing better than most of its competitors around the welcome back, everybody. amazon has started selling its globe. we know that interest rates have own line of branded diapers and stayed low. we know inflation stayed low. wipes. the stock when it heard this what is there still to find out last week didn't take too kindly that causes people to act to the news. bullishly at this point? finished down 7.5%. >> you know, to some degree, the slowdown in the rest of the joining us is ed lee. world keeps a damper on interest he's a managing editor at rico. rates. the biggest concern is the fed thanks for being here. might start tightening sooner >> sure. >> we heard this news, it's a than expected. head scratcher. it seems the latest round of why do you think they're doing this? data that the trends overseas >> amazon branded diapers no less. are lower. one of the things amazon found so we don't see the fed trying is a lot of people are searching for diapers on the site but a to do anything soon. my view is unless things

specific type of diaper. overseas get a los worse or environmentally conscious but also good for their baby. i think they're trying to there's some event sort of not expected event out there, the fulfill a need based on the data trends seem to be positive and they're receiving from people not overly positive to cause searching on their site. concern on the inflationary >> is there a high margin on side. >> answer me in terms of diapers or something? technical stuff, phil, and why bother? sentiment. you ever care? >> they're not a high margin >> yeah. >> how do you identify when a business. trend is in danger of getting jeff bezos, historically their long in the tooth? >> the one thing that strikes us experience is they're not big on driving margins. from a sentiment standpoint is they're big on serving customers that the market has consistently making sure they stick around on the site, get what they need. underestimates the improvement in gdp growth. i think that's their strategy here. whatever little thing, whatever the last two quarters, 4.6% and big thing that they're seeing now 3.9%. people want, they want to serve that's the strongest six-month them. they saw more searches, more period in gdp in 11 years. desires for these types of consensus estimates going into diapers. >> we've had analysts who have come on quarter after quarter, both those with 3% in both year after year that said this instances. so the market is underestimated is the time when amazon is going growth. to buckle down and start turning we're at 3.4% gdp for next year. a profit. we're going to stop at the experiments after the last -- consensus again of 3%. so at the margin, if the economy the phone and the rest of the continues to sort of meet our things. are they wrong to think that? expectations, that's going to do a little bit better on corporate

>> based on what we've seen earnings growth. maybe we get a little bit of recently, it's not the time. multiple expansion. i don't think the time's coming inflation and interest rates any time soon either. still very benign. jeff bezos is still big on so i think that all -- >> it grows much faster than experimenting. he talked about the fire phone that was a flop for them. expectations than unemployment falls more quickly. but they're still going to do it. he said we're going to try the the fed is perceived to be. next version and keep doing it fed behind the curve. until we see something happening with it. we fully expect that the fed is so i think that's still their going to have to stargt to strategy, is to try different things, experiment, but tighten next year. ultimately for them it's about one of the surprises on the jobs keeping the customer. report friday is the argument is you know? they're doing all the service to the whisper was the first hike keep the customer. and the funds rate would be a >> i will say this is has been a 2016 event. message that jeff bezos has been we think that got dragged back into the middle of '15. clear about from the get go. if you're an investor and didn't >> i agree. >> so in perspective of investors, there may be a knee jerk reaction down when the fed starts to tighten. realize he was going to do it, but when investigators think you haven't listened. >> but he's an opaque leader about it, they think wait a too. he's not out there a lot. second. if the fed is starting to he's not publicly speaking. normalize policy for the first and so i think in all fairness time in seven or eight years, to the investors or to the that's got to be good news. analyst as well, they're not and we think that that will getting a lot of good drive shares higher. information either.

the one insight we can draw from >> seems kind of obvious, the diapers thing and from all these other things that they're allison, but sometimes the obvious things work, i guess. doing, grocery delivery and all >> it's hard. it's more fun to be contrarian. these things, it's a way to but it does seem as if the drive more people to their prime trends keep improving at the memberships, the $99 a year. margin and getting a bit better, yes. >> the s&p was 666 at the lows. free shipping and free media now with it. tv and movie streaming on their it's now 2075. prime service. so amazon sees prime members >> we've tripled. >> yes. shop more than non-prime >> okay. members. don't even raise any cash, don't i think a lot of people i know have prime membership. even get any dry powder. i have prime membership. just stay in fully at this >> i do. andrew does. >> we all do and we love it. point. >> the concern is if you go into >> it becomes a matter of course the fixed income market, that now in terms of shopping. he's created a new model for it. >> i admit, guy there first market's at greater risk. the market can do well if because i want to see if i can get it in two days. there's modest tightening by the >> but i think that's what fed whereas the bond market could do poorly. they're trying to drive. >> we've had both viewpoints anything to drive membership is what they'll try. throughout the show today. and i think that -- there's a we appreciate it. longer term strategy around that this is the other one. thank you, allison and phil. for sure. >> thank you. >> sure. coming up when we return, >> thanks. coming up next when we strong job growth. gas prices at a four-year low. return, the popularity of ugly sweaters growing by leaps and

why economists are getting more bounds. we're going to take a closer optimistic by the day. look at what we're calling the we'll talk about in a minute. business of ugly sweaters. plus 'tis the shopping season and retailers are seeing their stocks sell at a discount. why the sector is having a tough time and if you should be a buyer. we're back in just a moment. a ph.d. or an mba. ave everyone has questions about money. you know, i think about money kind of a lot. -money's freedom. -money's always on my mind. credit cards. -mortgage. -debt. it's complicated. it's not easy. i'm not a good budgeter. unfortunately, i'm a spender. i would love to learn more about finances. so there's questions about the world that all of us have, especially about money and finance. the goal of khan academy and better money habits and the partnership we're doing with bank of america is to give people the tools they need to empower themselves. ♪ my baby drove up in a brand new cadillac.... ♪ ♪ look here, daddy, i'm never coming back..... ♪

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hey what are you doing? i was thinking about taking this speed test from comcast business. oh yeah? if they can't give us faster internet or save us money, they'll give us 150 bucks. sounds like a win win. guys! faster internet? i have never been on the internet and i am doing pretty well. does he even work here? don't listen to the naysayer. take the comcast business speed test. get faster speeds or more savings, or we'll give you $150. comcast business. built for business. welcome back, everybody. one of the hottest shopping items of the holiday season is the ugly sweater. we mean ugly. we are days away from national ugly sweater day.

courtney reagan has been looking at the good, bad, and really ugly. >> everyone has a family member who proudly busts out that holiday sweater every year. now many more americans are joining that crazy aunt. though maybe not for the same reasons. quote, the ugly holiday sweater trend is an example of the bulldog theory. so ugly it's cute or kind of fun. you can make your own from craft retailers. welcome back to "squawk box" you can rent one from rent the runway. on cnbc. retailers from macys to forever 21 and urban outfitters are i'm joe kernen along with becky quick and andrew ross sorkin. giving salvation army, good breaking news, the rumored merck will, and your first grade deal to buy cubist teacher's closet some pharmaceutical is official. competition. meg tirrell joins us with the searches are up 500% this year. the states with the most latest. >> that's right. we just learned merck is buying interest over the last 30 days, for $200 a share for a total pennsylvania, new york, texas, california. deal of $9.5 billion. fanatics. that's an equity value of $8.4 the largest retailer of sports merchandise sold out of the best billion. that represents a premium of most popular teams. about 35% over cubist's average groupon has sold more than 40,000 ugly sweaters this

trading price. that's $102 a share. merck for cubist. season. retailers cash in while they of course with this deal merck can. two years ago this was an brings in a lot of antibiotics. and another drug that is underground trend amongst expected to be approved by the college parties. now it's gotten exposed to the fda this month. general public, it may last only which could bring in $9.5 a year or two more. billion. here are some of the examples of $102 a share merck for cubist the fanatics. just hitting now. back to you guys. ugly broncos sweater. >> so ugly. >> all right. >> they run about $60 or so. meg, are you going to be with us but they really sold out of the later to talk about the pd-1 most popular sizes. they couldn't find any smalls blockers? for me. so we have mediums and larges >> yeah. that's why we're sitting in this here. but this is a miami dolphins for empty convention center which the dolphin hater or lover in should get busier today. your family. >> there's going to be a moment we'll be hear to talk about the where you can't -- >> perhaps. but they're hottest sellers humanology meeting. right now. but they have a limited shelf >> i know cubist is working on life. only a couple months every year. all sorts of new antibiotic >> once. >> i think this plays in. treatments but how far along are they and what do they have up the sweaters you've worn in here their sleeves so we understand i think are ugly. what merck is actually getting? so this sort of would combine >> yeah. so they've got the approved drug with the sweater -- >> exactly how popular are these ugly sweaters because who

cubesin. classifies whether or not a the other one is for infections sweater is ugly or not. maybe someone doesn't think this known as gram negatives. but there aren't a lot of drugs is ugly. >> put a zipper on a couple of out there for it. those and they're sorkin's. with this growing superbug >> i think of randy quaid from problem, a lot are becoming "christmas vacation." >> who's the most famous sweater resistant to certain drugs. this one is expected to be wearer with the father figure with the -- >> oh. approved and could get $1.5 b yeah. >> not even going to talk about that. right. a remember? >> i'm going mr. rogers. >> the cos used to wear the billion. it also has a drug that helps sweater on every show. patients recover faster from >> mr. huxtable. bowel surgery helping them get out of the hospital faster. >> yes. so their entire focus is on >> dr. huxtable, actually. drugs that are administered in >> moving on. >> okay. the hospital setting. thank you. >> thank you. and that's an area that merck's a number of specialty retail identified as one of four that stocks getting a bit of a black it wants to build in. by doing this acquisition, it's eye after black friday. check out stocks of urban building up in that area. outfitters dropping. that's tame to the likes of antibiotics have been neglected express and american eagle. both those names hammered to the in recent years so it's tune of more than 10%. interesting to see them go up joe feldman covers the discount here. >> i love meg. you can throw any question at and hardline retail names.

her and she'll know. >> are any of these absolutely joe, where are these stores having -- why are these stores novel, the mechanism of action on the antibiotics? having so much trouble this season so far? are they novel ways of attacking them? >> yeah. because we know how quickly it's been a tough time for these bacteria can mutate around just guys. maybe the trend of ugly sweaters hasn't picked up for those guys. but, you know, it's really been a lot of pressure there. add-ons type drougs. >> that's true. there's not been one hit item. that's been one of the issues and we're seeing spending in a finding new antibiotics. lot of other places. actually a lot of the companies i don't know if anybody would characterize them as novel i cover. like the walmarts and targets of mechanisms. one of the problems with gram the world. and even home depot and lowes negative bacterias is they have more ways of fighting off continue to do well. you're seeing spending on those antibiotics that are trying to things. you're seeing spending at restaurants and experiences. as opposed to actual items. kill them. it has been a long time since we've seen a whole new class of >> when you say items -- when antibiotics. you say walmart is picking up shares, are you saying shares of >> and i'm not going to throw clothes or they're buying other anyone under the bus, but we items? >> sorry, yes. i think they're buying other have people that take these types of things. other hard goods. z-packs when they have a cold or electronics. i think it's -- there's -- >> how do you square that?

a virus and it's obviously not, i mean, at some point people occasionally need to wear meg, a bacteria. clothing. is it -- are we in a -- is there and the doctors that prescribe it and the people that take it a fashion trend thing happening are just part of the problem, right? where there is no new fashion? >> meg, explain how i get better what -- how do you ascribe the in 24 hours if i take it and if i don't take it, i'm in bed for problem? >> part of it's a lack of a fashion trend. the athletic apparel trend a week. >> did i mention any names? continues. and retailers that are selling >> i know who you were directing that product have done well with that product. that at. >> why do they let people do you know, even dick sporting goods has done well with their that? why do they let people take antibiotics for what is a rhino athletic apparel. but there's no, like, hit items. remember a few years ago people virus, essentially? were spending $250 on jeans. >> you're completely right. and that's just not happening that's why these antibiotics have lost effectiveness. right now. you're not seeing any kind of but one thing is point of care singular demand. again, you made light of the ugly sweater trend, but it's not that one kind of thing that everybody's jumping on right diagnostics. so they're throwing things at the problem before they know what it is and that's caused now. >> do you think these guys go in issues. one area that needs to get and out with the fashion like ramped up are diagnostics. >> didn't you self-diagnose this abercrombie where they're out last time? now but can come back in? >> yeah.

maybe it's something else you have. the antibiotics aren't going to or do you think this is a longer trend? hurt. so maybe it'll take care of >> we think it's a longer trend. we've talked a lot about the something -- >> will you settle a debate, though, in my house about this? my wife is in the same camp both fast fashion trend. you've seen the likes of h & m of you are on antibiotics. i am not -- am i going to become and others out there that have been really picking up a lot of immune? it's that i'm hurting everybody share for that lower price good. else? >> yes. >> which is why he doesn't care. you know, the surveys that we do when we talk to teens, they exactly. that was my point. >> but can i become immune to it continue to indicate that personally? they're shopping at forever 21, >> no. but they're not shopping at >> i'm curious. >> will you stop if we say yes? abercrombie. and i think that's where there's >> maybe. definitely been a little bit of i don't know. a shift in where people and that i'm just -- >> what you should b worry about youth have been shopping. >> okay. joe, thank you for joining us isn't -- you shouldn't worry this morning. >> thank you. when we come back, jim you'll become immune but what can happen is the bugs become cramer is going to join us from immune then you might end up the new york stock exchange. the philadelphia eagles with something worse. suffering their first loss at >> all right. >> thank you, meg. home this year. and later morgan brennan brings >> again, thank you. we can ask you anything and you know the answer. us her moving experience with a thank you. >> she is amazing. we're going to talk about cow named elena. other headlines this hour. a look at the business of milk let's first start with this one. and technology on the farm. "squawk" returns in a moment. cbs stations are back on dish network after they reached a new

agreement over the weekend. cbs had pulled its programs friday after talks stalled. also gas prices are at a four-year low. the average price now stands at $2.72 per gallon. that's down 12 cents in two weeks. and five former employees of bernard madoff, they're going to begin sentencing this week -- their sentence this week in connection with that case. prosecutors are looking at prison terms up to 20 years. the stunning jump of the non-farm jobs has everyone going back to recalculate the gdp frflts. we think b this is for real, a new trend? >> actually, not. this is the interesting thing this week. if i thought i was going to go back and see these guys upgrading their forecasts, guess what you would think it would prompt rethinking of growth. but i'm not seeing it. i'm not seeing it spill into more optimistic growth forecast.

especially, by the way, because this was the one that everybody was waiting for. strong job growth and strong wage gains. maybe that's because of what's happening overseas. we got some bad news there this morning. i want to recap those headlines. production rising only half of the estimate. so it's good it's up, but only half of what was expected. japanese third quarter gdp more than expected. and disappointing china trade. let's get back to the u.s. and the jobs report. here's what goldman sachs writes over the weekend. quote, we're not quite ready yet to believe the economy is growing as much as two percentage points above trend. jpmorgan and whether and how much growth accelerates through the year is still an open question. and morgan stanley says the 300,000 jump in november should consider to get rid of the considerable timeline. the reason is because we talk so much about jobs on friday, there

were a couple other data pieces that came out that actually pointed towards a lower tracking forecast. you can see the fourth quarter hey what are you doing? tracking 2.6%. i was thinking about taking this speed test from comcast business. oh yeah? down. and the range is really wide. if they can't give us faster internet or save us money, they'll give us 150 bucks. 1.1%. guess who's at 4.2%? sounds like a win win. guys! faster internet? only one guys. i have never been on the internet he is the one optimistic guy out and i am doing pretty well. does he even work here? there. >> can you believe that, andrew? don't listen to the naysayer. take the comcast business speed test. knock me down with a feather. really? get faster speeds or more savings, or we'll give you $150. come on. >> he's the guy. but he's been right, joe. comcast business. >> really? >> two quarters in a row. built for business. >> joe who? >> joe livonia. >> you know joe. >> i do. but people at home are going who is that? >> we talk about it. let's get down to the new some people have been paying york stock exchange where jim attention. at least a few. cramer joins us now. we don't need, you know, it was -- they're still okay, still and this morning in rnabe keepi fine. i think. its forecast unchanged. i know, i know, i know, i did

they're looking for acceleration next quarter. see -- didn't see the whole game overall the street seems to be but one really nice pass from locked into this notion that the fourth quarter is going to be sanchez. but you know, when you play something of a comedown of the really tough teams you've got to expect you can't win them all, fourth quarter. though it was at home, wasn't >> tomorrow we get the big survey? >> big survey, and i can tell it? >> that's pretty much what chip you it's very optimistic. kelly said after the game. it's optimistic on holiday look, we got beat by a better spending and views on the team, maybe we can come up with economy. and some interesting stuff on a new game plan, talking about gas prices and the stock market we have tomorrow. >> okay. eagles/seahawks. marshawn winch running wild. thanks, steve. >> you live in nerd heaven. and richard sherman did shut you do. you are in a nerdy environment where you think everybody else down one side. it was very tough game. is under -- >> says the guy from m.i.t. i think people -- i stayed until >> right. the end but, boy, the place was going to be my first question of empty. >> jim, just not that you care, i mean you, finally got a coach, paulsen. finally, and i'm going back -- joining us on now is jim paulsen how long am i going back wishing at wells capital management. and before the jobs report on the eagles had a coach, i mean? monday, jim outlined a cautious >> andy reid was in five nfc outlook for 2015 with equities. still probably saying the same championships. not a bad guy. >> richie a good guy, too, i stuff. i can't wait to ask you some of these. first time the good news becomes knew him. all of these guys are good. a bad news scenario and also jim

you are saying underweight the chip kelly is -- is something. u.s. in 2015. >> he'll figure it out. i mean, look, we ran into the have you said that before? team that peyton manning saw, maybe better on defense. >> no, not for quite a while, that defense is incredible. joe. marshawn lynch is hard to bring there's some really strong wall down. we're a good team. street consensus themes right they're a better team. now. and one is the u.s. is the place >> jim, quickly, we've had a discussion today, and i think it was a useful one, that all of to be. the good things that help a and rates could stay lower for longer. market trade higher are very i think 2015 might result in well known by just about disappointing every one of those everyone, i think most people think it's a slam dunk next themes. i would tilt against them, i year. worst we'll say is high single guess, in portfolios. digits but it's going higher. do you think, is there any there's -- i totally agree the chance that all of the good news u.s. is doing a lot better. is reflected here and the next thing is that maybe the rates i'm with joe. start going up, fed is perceived i don't know if it's 4% in the to be behind the curve? fourth quarter, but i think maybe it's not clear sailing we're north of 3% and we're next year? is that possible? rapidly diminishing unemployment >> you can't have japan in a big in this country. i think the u.s. is doing a lot recession. better. but i think the stock market europe, if they go into a big reflects a lot of that already. recession, and china slow, have the currency go up very high and see the returns that we got in i think they've got better bets 20147 you knee one of the

in 2015 and doing better in countries to do better, or those markets the last couple europe to do better, because there's too much international. years and that i think are likely to bounce in the 2015. and when we're seeing is the currency is just a killer. so i would like to think, if one look, we've got not only gas of those -- if one of those prices hitting global economies everywhere in a positive places, china, europe, they come back online, japan comes back fashion, but you've got policy online, i think we can do single officials and most other places digits maybe better. outside the united states that are trying to push their but bun has to. economies up. we're just being hurt by the i think there's good odds they rest of the world. i love the fact that oil's succeed in doing that next year. coming down. and if they do, not only will but someone else has to have growth because of lower oil. those stock markets do better, and i'm not seeing it yet. but i think their currencies >> we've got to go. but in terms on a scale of one will get a bid as well. so if what the ecb is trying to to ten, how bad is the sentiment? ow overly come placeness are we do is successful, then i think right now? the euro gets a bid. >> hedge fund are shorting. i mean, i don't know, six. if what abenomics is successful, look, i just think as soon as hedge funds switch direction, i think it gets a bid. they're like old retail. not only the stock markets but remember retail comes in at top. the currencies do better as well. >> at the top of the show and how it's hedge fund. when they cover, they're at the i've been thinking about it more and more, i was trying to find top. >> interesting. >> when they decide they can't out what is the word that's the take it anymore, that will be the top. opposite of stagflation and i right now fighting it tooth and nail.

think it might be goldilocks. it's retail that's smart, not then i was thinking i can write hedge funds. down ten reasons to be >> harbaugh goes to jets or optimistic about stock prices in giants? >> jets, man. 2015. i can't even think of a negative >> waiting for that ryan house reason which makes me think it's to come on the market. already in the market. morgan is back from the and then even the republicans farm. we asked her to milk a cow, and taking over, paulsen. she will show us how it went. in this accident... the pro-business, pro-private sector people come in. it's time to sell, probably, right? look at what we've had the past six years with basically a rush to euro entitlement state. here we are the market doubled. >> i just -- i agree, joe. i think the whole foundation of this bull market we've been in since 2009 has been climbing a chronic wall of worry. that's really been the primary catalyst for this run. that to me is over. >> should we be flatter down in 2015? it wouldn't surprise you? >> it wouldn't surprise me. i haven't got an official target year end yet. because there was no accident. i will in the next couple weeks.

i think it's flattish. volvo's most advanced accident avoidance systems ever. it could certainly end down. >> and the dollar finally starts the future of safety, from the company that has always brought you selling off, too, you think. the future of safety. which is also contrary to give the gift of volvo everything. this season and we'll give you >> no one's out there talking about that. your first month's payment on us. >> no. >> i want to ask jim quick you say the market factored this in. a world where they think they're going to be 2% in the united states. but the big debate now, take the jobs number is whether or not this economy is shifting into a higher gear. and then you have to ask the question, has the stock market figured out or already discounting the economy going at a higher gear? >> i don't think they have. i mean, they have in terms of growth to some extent. whap they haven't factors and i don't think is the rates have many americans who have prescriptions got to come up. fail to stay on them. look. the big -- there's two big that's why we created programs which encourage people potential risks in that job to take their medications regularly.

report going forward. one of them we got friday. and that is the wage number so join us as we raise a glass to everyone who remembered today. jumps up to .4 gain. if we get another gain next bottoms up, america. see you tomorrow. month, watch how much wall same time. street's mind-set starts to change. >> what you're saying, even if another innovation from cvs health. because health is everything. the fed doesn't raise rates we did it. faster than people think, if we did it! there's another big number and ♪ we get down under 12%, wall street's going to think they're behind the curve. they're going to start thinking they're behind the curve. >> i'm worried about unemployment rate. it's been falling at 1% a year it is official, we gave the people what they wanted. and for the last three years running. the nation's strongest lte signal. this is a big deal! in the last year it's fallen another 1.5%. soak it in! just let it wash over you like a warm bath. we've got 2% payroll growth in this country right now and the working age population is only growing at .5% which means it's on track to fall 1.5% a year. imagine sitting here next year, steve, and we have an unemployment rate of 4.8%. you think we'll still be deba debating -- >> i have a hard time with this

conversation, jim. you're telling me i need to be worried about the unemployment rate falling and wage gains. if i get that with somewhat higher rates, i'm a happy man morgan brennan, back from and probably a happy stock dairy country, and she brought back video of traditional investor. >> it's got to do with the market. milking and how technology has >> steve, i don't think the taken over. and i learn a lot on break. four udders on every cow, though stock market has 18.5 times earnings. i don't think they'll be happy dogs might have more. >> the process automated over if wage inflation ticks up. last 30 years. >> if you can't see that usually we were in wisconsin to talk what's good for wall street is about record high dairy prices and what the effect of that will not good for main street. you know that. >> i don't know that's true. be going into 2015. i don't believe that. >> that's a discussion we've however, the process of milking been having for the past six a cow, very difficult. so we put a video together. years. it's been good for wall street. it's on cnbc.com, you can fine should it be a surprise what's that as well as an article. good for main street is bad for take a look at this footage, when i tell you this took all wall street? day, that's me finally getting milk. no. >> i think it's good. took all day. >> squeeze and pull? >> steve, long-term that may be >> squeeze and pull at the same right, but short-term it isn't necessarily right. >> give me jobs. time. give me wages. let the cow know you're there. when you do this by hand and >> we want all those things but you immediately start worrying know what you're doing, it takes 20 minutes. about -- >> jim, send me your report

machine takes five. again. i'll look at it. a big difference. >> did you warm your hands up or >> all right. >> when was the last time that went right at it? you were underweight like this >> so i started with latex though? gloves to keep my hands clean. the cow didn't like that so it's been a long time, becky. i just didn't think until now in much. took the gloves off. this recovery that the attitude >> thought you might have been doing something else with the -- was so poor about the future i don't know. latex gloves, i don't let people that stocks were prepared for the worst. and this is the first time i get near me either. feel they're more prepared for >> good hygiene. >> thank you. that does it for us today. the better. >> all right. thanks, jim. >> very moving piece. coming up, oil prices >> time for "squawk on the sliding further. street." u.s. consumers benefitting from lower gas prices, but the story in venezuela much more dire. ♪ global hot spots when "squawk box" returns. e good monday morning. welcome to "squawk on the street." financial noise i'm carl quintanilla with jim faber. premarket is lower after the dow failed to crack 18,000 friday by financial noise just nine points. a bunch of cross currents today, pharma m&a, weak mcdonald's sales in focus, oil is below 65, financial noise a new five-year low as morgan

stanley cuts its target for brent to 70, down from 9 pa. financial noise ten-

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and often even more. it's reliable. just like kung pao fish. thank you, ping. reliably fast internet starts at $89.95 a month. comcast business. built for business. welcome back to "squawk box" this morning. call it a crude awakening for the world's oil markets. brent crude hitting a five-year low this morning. wti crude falling as well. here with us now is an expert on the global oil markets. good morning. >> good morning. >> so what's the lowest this thing goes in the next year? >> you know, our futures think we're looking at $63, $80 on brent. sorry. $63 on wti, $65 on brent. we're there now. we're there in the terms of the size and the selloff. i think we're kind of reaching bottom because the fundamentals

are not terrible. we don't have a huge overhang. it's about a million-barrel overhang at the moment. >> and how nimble do you think we are here in the u.s. pulling back in terms of more production so it's really -- so by six months from now this supply story won't be the same? >> if you look at u.s. production, about 25% of u.s. production will be at $70. but the lead time is about nine months. but i'm looking at the rest of the supply complex. and that's where i think you start to see barrels come off. nigeria came back over the summer. that was a million extra barrels at a time of soft demand. those two countries could fall back off and you'd have instability in other key producing oil companies. >> did rvc, did you write anything or say anything about a drop below $70? >> i don't think -- to be fair, i don't think a lot of people saw this coming. >> yeah.

but did anyone? >> you know, there's certain people -- and i'll give credit to certain analyst who is said from the beginning that the american story would usher in -- >> but said it wouldn't. i could name names that said it's going to be a false idea that supply is going to get to the point where it offsets the rising demand every year. i know them. they come on all the time. at $90, when it went to $85 they said the market doesn't understand the fundamentals. >> there was a perception and i think this is where -- i believed early on the saudis would defend the floor because i looked at their expenditure. i thought the minister had been talking for the last couple years $100 was the floor. then i remember sitting next to a former ceo who said the saudis are always slow to cut production. a lot of us were looking for an opec response initially. >> we're at $64.80 and you think the low is $63.80?

>> we're looking at historically. then i go back to sentiment is really negative right now. but how much spare capacity do you have out there? >> i don't know what the inherent value really is. >> they had one supply shock. >> what if a hundred was an opec cartel price? what if it was all along? >> i don't think it was a cartel. what it was was 300.5 million barrels. that's what supported the market with historic ehighs and unmanned. >> don't we always see, don't we always see the supply and demand fundamentals take over where if it's worth that much, people are going to go crazy trying to find it. and they are going to find it and sooner or later it's going to swing and we're going to have more than we need? isn't that the way it works? >> in this type of price environment, do we get a resetting? if we're going to cut backs and demand is going to get a bump,

what does 2016 look like? >> demand will get a bump. >> it is. >> all these people that are driving all these ugly wedge shaped cars now are going to go back and be like becky and have four suvs. >> leisman said he called it. >> if you bought a hybrid, you should have something bad happen to you. >> ooh. >> no, i'm kidding. like a wedge shape hybrid. one of those ugly -- i'm kidding. >> i know. the priuses. >> look anotht me, i'm so green. so we'll see. >> we'll see. >> i'm writing that down. i'm glad if they said $88.80 because they might have. >> i would tell you what you need to watch next year is watch some of the other global hot spots. watch libya. watch nigerinigeria. north america is immune to political unrest. these countries are not. >> do you remember when we were stuck at $90 and all the hot

spots were going crazy? we said at the time it's barely able to hold $90 with all these things happening. and that's when it looked top heavy. >> but now we're at a low. we're oversold. >> okay. thank you. >> and then the dollar reverses. >> you remember the pontiac aztec? >> my god. that was the ugliest car ever made. >> that was not a hybrid though. >> that was made on purpose to be ugly. that's all i can decide. the designer said i'm going to make the ugliest car. i do. coming up, youtube stars getting -- how'd you remember that? youtube stars are getting bonuses. did you see this? youtube is trying to keep their big stars from going other places. i didn't know. is youtube going to turn into netflix or something? >> kind of sort of. the free version. >> it's all good. content gets valued more. we'll tell you why next. plus you won't believe how much grumpy cat has made for its

owner. is that not redundant? grumpy cat? does anyone know a cat who's not grumpy? >> i used to have a cat that acted like a dog. >> i don't like cats. >> i'm with you on cats. >> really? i have two dogs. then the next hour mcdonald's set to release sales numbers. we'll bring the reaction from an analyst.

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a wi welcome back to "squawk box." youtube offering bonuses to some of the top video makers in exchange for a multi-year exclusivity bill. by online services. most content producers receive 55% of that revenue from ads that appear alongside their videos. some numbers are going up higher. content is king, so people are willing to pay for it. or youtube is. >> do you know grumpy cat? i do not. >> i do not. >> an internet sensation sparked a line of products and a film. the cat has earned $99.5 million for owner tabitha bundison. she said she quit her job as a

waitress within days of the cat's first appearance on social media. is that really true? $99 million? >> i believe it. i've seen the toys in fao schwartz. when you talk about the aztec being an ugly car, this is like an ugly cat that works. >> grumpy cat has an agent who specializes in internet cats. product endorsements include iced coffee and friskies cat food. i need to look into this. >> there's grumpy cats.com. >> if it could make you a hundred million dollars. >> this is amazing, actually. they have all sorts of merchandise. there's billboards with the grumpy cat on it. >> for a hundred million bucks, i think you could snuggle up to that kitty. >> no, i can't. >> they have stuffed animals. >> you could do a sweater of the month. anyway, when we come back this morning, the city of atlanta has one of the fastest growing populations in america.

the mayor is working to implement president obama's order. the atlanta mayor will join us in just a few minutes. ♪ ♪ my baby drove up in a brand new cadillac. ♪ ♪ my baby drove up in a brand new cadillac. ♪ ♪ look here, daddy, i'm never coming back... ♪ discover the new spirit of cadillac and the best offers of the season. lease this 2015 standard collection ats for around $329 a month.

welcome back to "squawk box." among the stories front aerocenter, merck is buying cubist for a 35% premium. analyst barbara ryan will join us at 8:30 a.m. to talk about that deal. in other things, some news over the weekend we've been highlighting. also weak data out of asia overnight. trade data was weak. japan's third quarter gdp shows the company was in a recession. it was revised even lower than previously. and blackstone is selling its portfolio of 23 office buildings for $3.5 billion. it's the largest office sale in seven years. there was a huge fire in

downtown los angeles overnight. the blaze engulfed a seven-story apartment building that was under construction. no injuries, thankfully, to report. but more than 250 firefighters responded to that. wow. that's a huge fire as we said. also, check out this story this morning. a daredevil who's also a naturalist tried to film himself being eaten alive by an anaconda in south america. the man was wearing a black armored suit slathered in pig blood. when he felt his arm start to break, he ordered his team to save him. at that point just the top of his head was in the animal's jaws. many had criticized it calling it cruel. but now the man is getting grief for calling the whole thing off. >> this is one of the dumbest

things i've ever heard. >> you can't win. but it is one of the dumber things ever. >> but it isn't that -- >> they promoted this like crazy when what's his name went across the wire in chicago. >> right. >> and i was kind of excited about it. >> i'm not surprised. but it isn't that nice to the snake. >> it's not. just because you can do it doesn't mean you should be doing this. i didn't think the snake would survive it anyway. >> plus some people don't like snakes but if you look at how long snakes have stayed just the way they are, that shows you how well they do what they do and occupying that part of its niche. its ecological niche. advanced in terms of -- maybe behavior not as advanced as us, but in terms of those things being conserved over millions and millions of years. we're not that old. we haven't been around that long. snakes are reptiles, for god's sake. the annual meeting in san

francisco today. meg tirrell is there with some of the trends that we alluded to earlier that we're seeing in cancer research. hi, meg. >> hello again. that's right. we're here at the american associate hematology meeting where we've seen updates over the weekend from big companies and small. one of the most closely watched one is agios. they showed a significant response rate. a lot of these patients had tried other drugs and had stopped responding. people are very excited about these data. the company saying that was just a phase one trial, they are going to start a global registration setting. a late stage study next year in their furthest along drug. a lot of progress being seen there. this has a five-year survival rate of 25%. it's the most common acute leukemia among adults. a big need there. it's important to see survival data.

we don't know how long the drug is helping people live. but again, starting that next stage study. we also saw some data from bristol meyers and merck. we've mostly been seeing data on those in solid tumors like melanoma. that's what merck is approved for. but now we're seeing the potential for blood cancers. analysts saying it's not baked into the models yet. that could be further upside for those drugs. another form of therapy, we talked about car-t. which is taking blood out of the patient's body, reequipped their cells and reinserting it. there's still going to be a lot more data coming today. we'll also be talking with ceos here at the conference. but also through partners. they're partnered with agios and

axeleron. a lot coming out of the pipe line. >> okay, meg. we'll have barb aara ryan on. if you have any questions you can e-mail me. i don't think you're part of that interview, but let me know. she's one of the top analysts. >> thank you. coming up, the mayor of atlanta is now -- he's joining forces with other top cities to tackle the issue of immigration reform and we'll be speaking to the mayor in just a moment. how could switchgrass in argentina,

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welcome back to "squawk box" this morning. the futures right now, take a look. see how the market is setting itself up. we do have some red arrows. that's after bad news in asia overnight. dow jones looked like it would open lower. and the s&p 500 looked like it would open down about five points. a group of mayors will meet in new york city this morning to talk about how to implement the president's executive order on immigration. joining us to talk about what to expect is kasim reed. he is the mayor of atlanta. that city has the second fast eest growing foreign-born population if had the united states. he'll be joining mayor de blasio later this morning and mr. mayor thank you for being here. >> thank you for having me. good morning. >> so what do you think about

what the president has done and what does this mean in terms of what you and other mayors will in turn be doing when you go back home? >> i think the president made the right decision, because we've waited too long on this issue. and it's time to get to work. obviously being in new york city, i think it's the appropriate place to start the conversation. mayor de blasio is in the effort today. you know mayor bloomberg worked on this same issue for some time. my city between 2000 and 2012 has seen a 22% increase in its foreign-born population. we need to be ready for this. this issue is coming to cities across united states of america. today we'll be talking about mayors from san francisco, seattle, washington, d.c. we're coming together to have a unified strategy to deal with an issue that's coming to all of our doors candidly. >> what does it mean

practically? what does it mean you could do different? >> well, practically it means we're going to have literally millions of citizens across the united states that are going to need services that cities provide. and many people are going to be coming out of the shadows for services. question is, how do you stand up operations within your government to handle these individuals in the city of atlanta right now? one in three children under the ages of 18 or in foreign-born or non-glish speaking households. how do we absorb those young people into our school system? couldn't think of a better place under mayor de blasio's leadership to start this conversation and really create a tool box, if you will. certainly considering the fact that one in three americans can trace their roots to someone who came through ellis island. >> it sounds like you believe this is something that's long