wall street and "squawk alley" is live. ♪ welcome to "squawk alley" for a monday morning. joining us john ceo of the daily mail north america, john fortt and kayla tausche where the dow struggling to get back to the flat line after mcdonald's numbers disappoint. in tech according to the "wall street journal" google is trying to lock up some of its top stars at youtube to prevent them from jumping to the competition. apparently facebook and other startups have tried to poach some of the best talent in

months. google is offering video makers bonuses to sign multiyear deals to post content on youtube for a time before eventually putting it on a rival service jon fortt where we get salary figures for grummy cat seems to be a natural fit. >> windowing on-line what's old is new again. jon was helping me with the math up there. michele fan, a big youtube star, does the makeup thing, 18 million average monthly views. she's probably worth directly around three quarters of a million dollars a year to google, but that's not counting the intelligence google gets on her fans interested in makeup. imagine how much google could monetize that. it's obviously worth a lot of money for them not to lose that information. >> but so do we stop talking about youtube as a capital life business? if they become a company that has to start paying for talent and for content then they have just as bulky auto a cost structure as the traditional

broadcast companies. >> we talk about youtube like a cable network, amazon the same way, netflix, hulu, vessel, yahoo! these content providers whether it's a michele fam or a pd pie, one of the stars run by maker studios, these are the content these players are bidding for in addition to long form content and i believe news content, whether major network content or content from "the daily mail" or vox. >> something you want to disclose early? >> no. but i will say i'm thinking when i saw the article this morning i have to call vessel up and find the e-mail address. i want to say how much do you want to pay for daily mail content. >> brings to mind the guest we had the other day enlarging studio space in new york city trying to make their production more high tech and spread it out around the country. >> i asked about competition and the fact that others are trying to poach that competition what they're willing to do to keep them. seems like we have our answer.

>> if you were a video star who has made your fame on youtube, though, what interests do you have in going to another platform? you have the leverage, but for a fleeting moment of time, what happens if you say no to youtube? >> it also is almost like a star movie to any network where the paycheck and deal is going to be better. media owners are getting a little strength. for so long digital media was a beat down sector. with all the social networks penetrated everybody with a device media is getting a little power. we see this in our negotiation with technology vendors. we see this in our negotiation with ad networks and now i think we're going to see it with the content nessworks which want to take our video content and put it in front of people. >> downgrades of google last week an i'm wondering, i don't know, is this net negative because as kayla points out the cost structure inflates? >> not for google necessarily but look at other players like amazon, the amount that they spent on content, really was the disappointment in their quarterly numbers.

last quarter. so google pretty much prints money at this point. we'll see how that goes going forward. as content cost goes up who does this hurt disproportionately that doesn't have as many ways to monetize that content as google does. >> next up, uber has been beened in the indian capital of delly after a driver was accused of raping a female passenger. in a statement the ceo apologized for the incident and said he would work with the government to, quote, establish clear background checks. "the new york times" going after the company in an op-ed titled "we can't trust uber" the piece worriy ies about the massive amt of personal information saying when we're picked up on a rainy street corner it's not enough to know where the car is going, where our data is going and how it's used. not necessarily a new notion. they're saying in some ways the danger of uber is in the data. >> but it also highlights some potential scenarios where the

data would be sensitive. for instance, one of the instances in the article is what if you are going to a job interview at another company. could your ceo call uber or could someone who works at uber disclose that information in a way that would make it harmful to the end user and it appears there aren't those checks and balances at uber. the company, of course, is trying to put that infrastructure in place, but the fact that it's worth $40 billion and that's not there, and they have so much activity, john steinberg, does raise questions. i think "the new york times" is right to point that out. >> i haven't read "the new york times" thing but the likelihood of your boss getting your uber information is low. the bigger issue data breaches. all this data sitting here. when companies become big enough they become a target. can you imagine rides being widely disseminated across the web, ending up on message boards. >> what do you make of the india angle? >> i did some looking into this and i don't think that uber should necessarily get the finger pointed at it in this case.

there is a cab company that's growing in india very quickly called saca cabs for women founded in 2010, 12 female drivers and 62 in training according to the "washington post" because there is this issue with cab safety for women in india in general. there was a story in january about a taxi driver allegedly drugging a polish woman with a spray and raping her. a taxi driver accused of raping a woman in august 2013 last month a taxi driver accused of raping and murdering a tourist and her male friend. this isn't a an uber issue it's a wider concern in india. >> uber said the standards were not there according to government agencies and they go with government agencies. i looked on the policies in the u.s., in the u.s. it says for even uber x drivers there includes a three step criminal background screening in the united states. it's a question in each of the countries working with the governments and firming up appropriate background

standards. >> the blog post in which travis acknowledged they will have to learn some lessons the hard way. >> but also -- >> a reminder it's not just in the united states. >> they're targeting growth mainly in asia pacific with this new round where a lot of the policies differ from the more developed markets where they've gotten their foothold. this is something they will need to look into further. >> transportation is a cultural issue. saudi arabia and the issues around women driving in sod da arabia. we will see cultural issues that aren't uber specific cropping up. this company will have to figure out how to deal with those in the right way and how it affects their brand. >> yeah. finally mark zuckerberg is trying to impress the chinese government. the head of china's internet information office toured facebook hq and made a stop at zuckerberg's desk where the facebook founder had a copy displayed of chinese president jingping's book of china. i want them to understand

socialism with chinese characteristics. facebook has been blocked in china since 2009 and if that ban is lifted the company would have access to about 640 million new internet users. was this staged? >> well, maybe. we know zuckerberg has been thinking about china a long time. learned mandarin for goodness sake. what i wonder about, be careful what you ask for scenario for facebook. facebook, if used in the wrong way by the government, you know they want all kinds of access to personal data, facebook could be the most effective democracy crushing tool ever known to man. so hopefully zuckerberg and facebook tread carefully looking to go into china. >> the minister of cyber administration in china who did the visits actually was traveling with a vice president wong which speaks maybe the way to make this happen, which is

baidu tied to the chinese government is going to work collaboratively with facebook and other companies on this listening tour. that is the insight from the news brief. >> do you think that chinese government would be willing to allow something like facebook or twitter into the country when they've gotten a lot of business for chinese upstarts within the country. >> it could be a jv. look at alibaba yahoo!. it could be along those lines. the bigger question is, is facebook going to be comfortable with what they need to acquiesce to make this happen. google wasn't. in eric schmidt's book they talked about the debate to pull out of china. is facebook willing to compromise to do what's necessary to be in china. >> i would think you to isolate the data you've got in china because the government is going to want a certain view into that. people are connected internationally. imagine what a tool for spying that would be if china got its hand on overall facebook data based on the spying that they're doing on their own citizens. >> i'll say what i thought when i read it this morning, facebook ends up in china in some form

over the next few years. it's inevitable. >> should we feel good about that? >> that's another topic but they're going to do it i think. >> when mark zuckerberg says i want to connect to the entire world -- >> maybe whatsapp goes there first, a one to one communication. there would be -- i'm sure the government would be able to read the messages but maybe that's the first step. >> the nsa wants to connect the entire world. >> being in beijing, wi chat everybody is doing it. ten x what they're doing in the u.s. maybe an opportunity on instant messagi messaging. >> we'll see you later in the week. >> i'm upset i'm missing the hollywood drone segment. >> you have to recuse yourself no matter what. >> a check on the markets the dow hanging in the red today, down by about 14 points. the fall in oil prices yet again today is hurting exxon chevron. the story, also mcdonald's falling slightly and that has led to the dow being in negative territory today.

meanwhile, shares of ebay are in the green. that company getting upgraded to buy at stifle nicolas referring to the company as the real deal in e-commerce while most analysts have been largely focused on amazon. interesting note there, that's moving the stock up by more than 1%. mentioned oil, it is down 3% today and, of course, that is leading to much of the losses in the dow. down 3% on crude. . brent down 3.5% below $67 for the first time in five years. ugly sweaters aren't just for themed parties. they're actually big business. jane wells has been showing off the ugliest sweaters around all morning. she's back at an ugly sweater store in l.a. with more on that booming business. jane, over to you. >> you know, kayla, i'm at the shop ugly sweaters.com pop-up store in burbank. ugly sweater day is december 12th. this has been commissioned by a

hollywood producer going to a red car pet ugly sweater contest in malibu. he told her the budget unlimited. this is sweater number three. we showed you one and two earlier. we got into the thrift store. it's a y2k holiday sweater. as i prepare to reveal sweater number four, first we talked to customers, who's buying and why and the ugliest of all. >> i have one that has grandma's grandchildren. >> red sweater, my ex-girlfriend's actually. it's horrifying. >> glued tin sell a and crazy little figurines you get. it's pretty sad. >> maybe it reminds adults of just that, wearing that sweater that their aunt made for them as a kid that they really weren't crazy about but their parents made them wear. >> all right. sweater number four here's our music. dreidel dreidel i made it out of

clay and when it's dry and ready dreidel i should play. this is the fastest growing segment. hanukkah sweaters. she sold it for $60. get this one for $48 where they have removable flames every night they keep them in a pocket here. ugly hanukkah sweaters weren't a thing until recently and she has had to work hard to get enough in stock. back in a half hour with sweaters five and six and talk to retailers about trying to stock these stocking stuffers. >> jane wells with the strangest countdown we've ever had on our air. we'll come back to you in a little bit. when we come back, the sony hack continues to make headlines but how important is the back and forth from media investors. answers in a moment. ten different firms have upped their price targets on apple in the past few weeks but one analyst says they're missing something important. we will explain. drones are coming to hollywood. we have amazing footage of those drones on set in action. it's coming up later on this hour with the dow still down about 8 points.

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welcome back to "squawk alley." check out shares of club corp. the stock is getting hit after the company said it's converting or not converting into a reit as some activists have called for. it's not a viable option said the company at the present time. investors not exactly happy. it's down about we'll call it

about 8% in six times its normal trading volume. shares off their session lows but still off by about 7 or 8% on the day's trade. back to you. >> thanks, dom. betweens the major sony hack and this week's budget debut of netflix's "marco polo" series december shaping up to be a big month for media. if you missed "saturday night live" here's james franco and seth rogen talking about the sony hack. >> you're not going to believe this but an hour ago they released some of our private photos from our phones. >> what? oh, my god. which photos? >> all of them. >> you mean like the one i took of you in your dressing room? >> yep, yep, yep. with the control top pantyhose. i was just trying to look a little slimmer. >> i thought you looked great. >> those photos getting worse as the skit went on. helping us figure out what whim matter most are barton a media analyst on set is film reporter

and movie reviewer matt, contributed to hollywood reporter.com and espn's grant land. thanks to both of you for being here this morning. matt, we got to talk about sony and, of course, this hack which is still paralyzed the company's computers. this is more than just putting proprietary information out there. this has stopped the company. >> the people that i work with as a film reporter are e-mailing me from gmail now. that's how bad it is. they can't use the system. i mean this is really trampled their plans. a lot of information flying around the net. all the movies have been put on these sites. i don't advise people to download them. that is bad behavior. but it's all out there and they're going to try to come back from this, but it's going to be tough. there's a positive. they gained twitter followers. >> i mean, i'm wondering, maybe barton, this is for you, is this just a preview to what could happen next year? imagine this had been disney

coming up with the "avengers" and "star wars" movie at the end of next year and things like that getting released we would be talking about huge financial consequences. >> that's a tremendous question. the issue of piracy and movies is something that's a growing concern as more stuff is digitally consumed. today the episodes have been confined to the niche movies, lions gate had an episode with "the expendles" i think they believe dinged their box office a little bit. digital allows you to open up emerging markets like china that have been really closed because of piracy. you can sell things on-line there. so i think there's kind of a double edged sword here. clearly there's a technology arms race, the industry is fighting to stay on top of this. you wouldn't want to see "star wars" 7 before it comes out in december of next year. >> when you think about how big a month december is for the media industry and the fact

that, of course, oscar nominations are front and center with so many films set to be released, obviously this is not the time that any company wants to have any sort of weakness apparent going into the end of the year. do you think that sony's pain could be another company's gain or do you think that the worst consequences are pretty much out there at this point? >> i do think that. i don't think it's going to affect sony too much. i don't think anyone is going to gain from this. it's struck fear in everybody. sony wasn't going to have a huge winter anyway. the interview was going to be a big movie and as people saw in the "snl" clips a funny movie and it's going to be fine. play big here at home. people are oblivious to this and this is an internet problem which is still neech. >> strikes me, talk about a cursed year, horrible year whether losing share in electron ficks, having to warn multiple sometimes on operating -- times on operating cash and now in films.

cannot win. >> the stock is up. the yen kind of has been their friend. >> yeah. >> i suppose. if there's any kind of maybe semi silver lining here, this is probably the best time of year for this to happen. you have to think they've already got the marketing plans in place for the holiday movies. what really happens in january, february, anyway you wouldn't want it to happen next year in the lead up to summer. if you have to get screwed over let it happen ins december. >> maybe in a perverse way this publicity will be good for the movie. can't let you go without talking about netflix. "marco polo" big budget for that series coming out this week. how will you as an analyst be judging the relative success of this without any real data on viewing, without any real data on exactly how many people are watching this, how do you judge that given the budget and how much it will mean for netflix's international expansion? >> yeah. well i mean one thing we're going to do is watch it, but beyond that no single kind of series investing in is doing

more than 10% of their audience. so it's an incredibly diversified portfolio. i think we'll look at this, how it's received critically, we'll see if there's any kind of traffic indicators that suggests there's a tidal wave of interest. the answer is going to be "marco polo" may not have the type of cultural impact that we saw with "house of cards" with "orange is president new plaqblack." if they bring back the cultural with some of the other things they're doing, chelsea handler, and some of the comedic stuff with lily tomlin and others, you know, but it's not clear that this is really going to have the same impact in making netflix brand up to a new level we saw from their new originals over the past year or two. >> barton, best of luck finishing "marco polo" in addition to your day job. appreciate you being here. matt as well. joining us here at post nine. when we come back, drones are coming to tinsel town and we got some amazing pictures on set in hollywood.

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drones are building to hollywood. the faa starting to allow the entertainment industry to use drones on set. a sneak peek of this new drone technology she's in l.a. with more. >> hey, carl. the stuff is really cool. hollywood has been eager to get to work with drones ever since the faa began allowing drones on film and tv sets in september. hollywood studios hoping to get amazing new shots at a fraction of the cost of current tools. we got a demo from a company called aerial mob one of the six companies the faa approved for closed set shooting. the company visited universal studios drawing dozens of production executives looking to see just how the technology can replace traditional techniques. >> the biggest is getting shots you never could get before. traditional film production tools such as dollys, camera

cars, cable, full size aircraft, we can do all the shots and combine them, we can do them over or have a gps based technology we can repeat the same shot exactly if we wanted to. >> now carmean says getting the drones is much more cost efficient than the alternatives because aerial mob charges 9 to 10,000, the fraction of the traditional shot. this is still early days and there are a lot of restrictions to capture these types of soaring shots. the drones are limited to closed sets and have to stay 30 feet away from actors and crew. the universal executives we talked to during this demo say they're very excited about the new tools, though they warned there's still a lot of regulatory issues and paperwork that needs to be handles. it says its phone has been ringing off the hook with dozens of calls a day for jobs and expects business to get busier. carmean predicts the faa will approve the use of drones in

other areas like agriculture as soon as the next couple weeks. kayla? >> hollywood and other industries on pins and need les. we appreciate the inside look at what they're doing out west. let's bring in simon hobbs as we count you down to the close in europe where they're starting off monday on a weak note. >> the oil services stocks weighing. that's why you see norway down in particular. coming back down from the seven-year high led by the falls in the price of crude. the retailer admitting it does have delivery problems. apparently in the press there was two-week delays on on-line deliveries and same day deliveries or next day deliveries were abandoned between stores. mark and spencer down 2.5%. the fallers with a messy deal not going down potentially within building services within materials. sanga has bid for its swiss rival but it's done so by buying out the controlling family with

a 73% premium on their stock. the trouble is the boards, the staff and rest of the shareholders aren't happy. because they really don't think that they're going to be able to run the business terribly well if the entire management team is leaving. that is a complete mess and no doubt will last for a long time. picking up the news from friday on italian debt, do you remember s&p downgraded, italy sovereign status, one notch above junk status. you see the yields continue to fall. prices are rising as speculation continues the european central bank will launch sovereign qe at some point. to that end mario draghi is actually attending the two-day euro group meeting today in brussels, all the finance ministers. the biggest thing to come out is that they will force the greeks to extend their bailout so they remain with the humiliating controls as far as the politicians are concerned with all the political consequences. they went into the meeting with the italians and french pushing

back against angela merck whole said they should do more to sort out their budgets. as far as the week ahead the big news will be this cheap debt from the central bank, the ltro. they're going to basically announce that on tuesday and allot it on thursday and that will feed into the discussion about the balance sheet. let's leave it there for now. >> thank you very much. president obama sitting down with prince william in the oval office a few moments ago. the pins and his wife are on a three-day tour of the states. later in the week they will attend a nets game, cleveland cavs game at the barclay center in brooklyn. expected to hang with beyonce and jay-z and visiting the 9/11. >> lebron action too. >> we will see about that. he will be in the building. >> absolutely. >> when we come back, everyone is missing one key detail when it comes to shares of apple, so says jim at citi. he's with us to explain in a moment.

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oil is yet again front and center. the price of oil falling today. both brent and wti down by more than 3%. leading many of the major averages lower because of that. jackie deangelis is at the nymex with more on that. over to you. >> hi. good morning to you. that's right. we're seeing five-year lows in wti and brent and aaa is saying

five-year lows for gasoline prices, retail gas prices that is, are just around the corner. it could be days. looking for a 6 cents drop it meet the milestone. aa has the average at $2.67 right now. a couple notes if we fall like this these will be the lowest gas prices since the height of the great recession and yes, seasonally we see prices drop this year but nothing like what we've seen this year because of the declines in crude. if they continue, you could see retail gas prices at $2.50 by the end of this year alone. a lot of good news for consumers. maybe they'll take that money and spend it elsewhere. back to you. >> thanks a lot. jackie deangelis. apple upped by citi this morning. senior analyst jim sueva says there are things missing from consensus and joins us from 30 rock. good to have you again. >> good to see you today. >> sounds like you're talking about purchasing trends in terms of memory. people graduating up to the 128

where they might have bought the 64 before. >> that's exactly right. with a better camera, better resolution people are finding it more suitable to buy the 64 and 128 gig models. this means higher sales and profitability for apple. we think the shares go higher. >> walk us through -- give us numbers. how much does that benefit them versus what we pay at the store. >> very important question. so it's at least $200 more on average we believe from the low end to the high end and we believe apple has over 50% gross margins for this trade up. therefore you can see if you instead buy the higher instead of lower end models it's profitable for apple. >> are you sure this isn't priced in? because we saw when they came out with these models the way they spaced it, 16, 64, 128, they were making a play for that, there's still supply constrained on some of these phones and you mentioned that the ipad you think based on your checks isn't performing as well as it otherwise might. isn't the risk after this big

holiday quarter they tonight have other revenue streams to run on besides the iphone? >> great point. there is no doubt there's a lot of variables going on with apple. point blank, their phones are selling off the shelf and they can't keep up enough supply. that being said, to your point about we knew there were three models coming out, we didn't know exactly what people were going to buy with the better camera resolution, people are taking more video, more pictures and more and more apps, they're finding it more worth their money to buy the higher end ones. we're pleased dd to see this happen. traditionally in the past has been the middle model. we're finding it to be the higher models more profitable. regarding other products you mentioned that's always a concern for apple. what's next? what's next? as long as the people -- as long as apple continues to keep innovating and coming out with more innovative products such as apple pay, apple watch, we think there's more legs to the story but, indeed, you mentioned about

ipad. let's be honest, there is cannibalization happening with the iphone 6 plus from the ipad mini. we see that product actually being pretty soft the next couple quarters. >> jim, you know your note is titled what consensus is missing. i would argue going from 98 to 120 means some of that consensus is built in. why do you argue the street is still missing this. >> we're very pleased with apple stock with the buy rating has been up 45% year to date. as we look ahead and go forward and we see our numbers materially above consensus, as apple continues to generate above expectations for profitability, we believe the shares will go higher. currently the stock is trading at 15 times but if you remove their $20 per share it's trading at a multiple of 13 times earnings. that's a steep discount to the market multiple of 16 times. we think the stock can get up to about 135 which is about 20% upside from today's share price. >> you mentioned the market

multiple. we've had a number of guests talking about valuations, public as well, getting out of control. is there a risk that the market multiple comes down and that affects your price target as well? >> no doubt that concern is out there but that's a bigger question and probably better for your guests the macro economists. all i know from where i sit is apple products are selling out, selling out across the board and people want to buy their products and a lot of other products out there they don't. with lower gas prices people have more money to spend on consumer lec trop knicks. >> is there a point, jim, at which i have enough memory, right? i mean, i'm not sure how much we can record. i imagine it's an awful lot. what if i get an ipad, the 128, i have room left over after loading all the apps i need. what happens to my mindset then? >> give it to your niece or nephew let them fill it with video. seriously there's a lot more video content that's coming out and with higher resolution on

the camera, there continues to be more innovative ways consumers are putting that memory to use. historically, believe it or not, memory and content and data has grown about 40% for the past decade. it's been consistent. 40% growth of increased data every year. we think that trend continues. people will find way to use more memory. >> 4 k. >> like he's in my house. >> yep. >> give it to your kids. exactly what happens whether you like it or not. >> with that 4 k video is going to fill you up faster. yeah. >> there are a lot of people who have gotten the iphone 6. i'm wondering if you think the replacement cycle gets longer now that a lot of people have upgraded to more memory, more expensive phone, more pleemium phone and at what point do people say i'm okay for a couple years and don't need to bite next apple product. >> with apple and its stock, people are looking at about the next two quarters out and we see those numbers being too conservative driving the stock higher. we definitely will further down

the road be looking about what's ahead for apple. keeping a close eye on apple pay. it's only rolled out into the united states. it hasn't rolled out to canada or europe or asia yet. we are very much watching apple pay to see if it gets traction as well as they developed a partnership with other software companies starting to build some ach plycations from ground up and this should help out enterprises use apple products more and more. we believe today it's about the iphone 6 but as you look ahead down the road we believe there's other services and products that may start to gain traction. today for christmas it's about iphone 6. >> we'll continue that conversation into the new year. thanks so much. jim sueva at citi. >> thank you. >> when we come back blackberry says thanks but no thanks to kim kardashian. ceo john chen explains why he's not true ig to capitalize on her love of blackberry phones. rick santelli was a special guest on "meet the press" this weekend. check this out. >> when they call that vote that

the congress took symbolic, back before social media, everything was symbolic. now they don't take a vote unless it's absolutely assured it's going to pass? >> rick santelli live this time. what are you watching today? >> you know, just to touch on that i think the american people ought to know how their representatives vote on key issue and i think we mask that to some extent. how to unmask and calibrate the improving u.s. economy against europe. why? because there's a big clue to how to trade interest rates and better that relationship all after the break. how can power consumption in china, impact wool exports from new zealand, textile production in spain, and the use of medical technology in the u.s.? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 70% of our mutual funds beat their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment

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coming up top of the hour from the new york stock exchange super trader haslo will join us as the dow approaching 18,000. he will reveal where he thinks stocks are going to go in 2015. celgene shares hitting a record high on positive cancer data. we'll talk to the ceo. an exclusive interview. the biggest gopro and apple is here for his outlook for 2015 stocks. how much can they run? we'll see you in a bit. >> good to have you in the house. thanks a lot. to dominic chu for a market flash. >> we're watching shares of digital river provide of end to end cloud commerce payment marketing solutions for companies. it's trading ten times normal daily volume and the stock is plummeting on news it granted microsoft an extension to decide

on whether to extend an agreement between the two companies. the stock which has a market cap of around $575 million is currently trading you can see down by 23%. looks like microsoft is going to get an extension to extend its agreement with that company digital river no quite a move very interesting development there. thanks. blackberry ceo john chen penning a linkedin post this morning addresses kim kardashian and the rumors swirling around blackberry possibly entering the china market. while the temptation exists, he says it's important to stay true to the company's core strategy. he writes, quote, build trust and be clear on your priorities and know that the right decision at the wrong time is still the wrong decision. we've heard a lot from john chen over the last call it year he's been at the top of this company. do you think going to linkedin is a further talking about blackberry strategy and moving in the right direction? is it material? >> it's not the first time he's

taken to linkedin to do this. he's in brand protection mode trying to position them as a serious security focused enterprise company. what he's saying, though, it might seem like kim kardashian could help him sell phones. it doesn't really speak to the cio who he sees as being the key to their future trying to sell the enterprise server. he's going to take a pass on this one. >> interesting the same day that they have this partnership with a technology provider to give doctors access, secure access, to genomic information, trying to work your way into as many corridors of the enterprise as you can. but i don't know, turning away -- is that being too disciplined about your message? it's a lot of publicity to turn away? >> maybe not. you got to be careful, i think, about your headlines and so if people get too excited about kim kardashian and linking that they're not going to be maybe talking about security in these vertical markets where they think they can make some headway because hospitals are very

concerned about security. so, you know, right thing at the wrong time he says. >> sure. >> makes some sense. >> we'll see how it works out in 2015. stock is up. >> stock looked pretty good lately that's for sure. over to the cme group and check in with rick santelli. good morning, rick. >> good morning, carl. listen, we all know that -- we could debate as to the state of the u.s. economy predicated on history, other post-recession recoveries buts there will's te when you look at the largest world economies the u.s. is doing better. we know there can be influences from the weaker economies whether it's japan, whether it's europe or the decelerating economies like china. but in the end it's about calibration. traders on this trading floor really try to keep it simple. so i am going to go through a couple of charts and give you a glimpse into the types of conversations i've seen today, realizing that u.s. trades did pop on the better than expected

job data but coming back down and it's very important they're below 230. look at an intraday chart of bund yields. they just drop down from close to 80 to basically trading back into the 70, 71 basis points area. two-day chart and compare it to our two-day chart. ours isn't as developed. that's not what traders is see. what traders saw is an early sign to buy treasuries assuming even though we extended the premium of the u.s. economy versus europe it's coming into some type of rubber band, in other words rubber band stretches and comes back a bit. how can we prove this? let's look at the spread. look at it, a chart of the bunds versus it ten year spread over two days you can see the evidence of friday's better than expected data. it widened out, almost touched 160. these are fresh, wides when you take our tens minus bunds going all the way back to the summer of '99. call it 15.5 years.

if we want to keep it simple, ponder this. yes there's interest rate differentials, issues with currencies that aren't trading one to one. if you scrub that away and try to keep it simple as our economy improves more than europe, that spread is going to widen. because rates should be softer in the european sector. but traders think that the influence of that weakness is going to come back through various transmission lines. so they assume that 157, 158, 159, differential, is going to come back in a bit. so what they do is they buy ten year pushing the yield down. this is something i especially think will be an exaggerated situation between now and year end. how can i prove that? because october 15th did have a capitulation effect to it. might be more about managing positions and what has been affectionately called the relative value trade that our yields at these yield and price levels are a better deal than europe. back to you.

>> thanks so much. rick santelli in chicago. when we come back jane wells showed off ugly sweaters near the top of the hour. but that was just an appetizer. jane is he saving the best for last. the ugliest of them all. i don't think it's that one that's being held up on the screen but you will find out after this break. "squawk alley" will be back in two. .

it is the holidays and all morning long jane wells has been showing her ugly sweater collection. back with the best of the best or worst of the worst. actually fascinating business. you got more? >> it's a tough call to pick which is worse, carl. by the way, someone just called here, they want to run over and get that yellow hanukkah sweater. let's roll the tape. if you've watched over the last hour you've saw me reveal four sweaters, the $45 santa from ebay, the $48 cat sweater from here, the $35 y2k cardigan and so far the $60 lit up hanukkah sweater. this is five. pretty ugly, pretty cheap, $35 at a thrift store. safety pins i don't think so. the worst of the worst, it's not just here shop ugly sweaters, we went to stores up down here,

encore, play clothes, vintage store, a lot of the sweaters in stock hard to get. they are not originally meant as jokes. employees have to be careful because sometimes a customer buying them don't think of them as jokes either. >> a lot of people really like the beaded ones. like this one here that has a little beads and the stockings on them. who decides? i'm going to have a purple and then a red and white and snowflakes. it's a joy. if you really think about somebody making this. >> it's a joy. all right. sweater number six i think is the worst. you have the bells. it's $35. from a thifts store. the purple and the red although i'm starting to think this one, this is so ugly, this is $35. this lights up. this is $45. i don't know. tough call. >> december 12th ugly sweater day. she's getting orders right now.

>> we will take three. three of them for myself, fortt and tausche. >> except we will not wear multiple wins at once. i don't know how jane is not sweating. >> i can skayla in the vest. >> i know. jane wells covering the retail beat out west. when we come back, it's been a rough day for crude oil. down almost 4% this morning. man, where is the low on texas? back in a minute. daughter: do you and mom still have money with that broker? dad: yeah, 20 something years now. thinking about what you want to do with your money? daughter: looking at options. what do you guys pay in fees? dad: i don't know exactly. daughter: if you're not happy do they have to pay you back? dad: it doesn't really work that way. daughter: you sure? vo: are you asking enough questions about the way your wealth is managed? wealth management at charles schwab.

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markets had problems getting out of the red. other reasons chevron and exxon and i'll tell you, you look at crude today it's too easy to shake your head. another 4% decline on crude. we did have news today as morgan stanley cut their target for brent for 2015. they think over supply could peak in the second quarter. $70 as a base case, lower than that for their bear case. >> making goldman $75 carol per barrel looking bearish. city's call looking like that was very bullish. >> ten more bucks at 53 and

crude oil, west texas intermediate, would be 50% off the high from this summer which was $107 and change. >> all right. black friday all season long. >> aaa out with statistics this morning saying that average u.s. household is saving about $100 a month in gasoline costs. >> $75 billion is what the tax cut for the consumer has been estimated. but remember the financial crisis, wti hit a low of 3305 i believe was the change number on that. even though we are still low on oil still quite a run up from the financial crisis lows. >> got to wonder if it's going to show up in the ups and fedex margins after the holiday season because they got to buy gas to drive those gifts around. >> we know what a tear airlines have been on. goldman taking southwest to a buy, although things are going swimmingly for the sector they expect southwest to be one of the few that will outperform their rivals. $42.

incredible action. we'll see, a big discussion on "squawk box" it's not like geopolitics went away. although we have an excess supply of oil it's not -- we're not a wash in crude around the world. >> consumers booking flights for this season they're not catching a break either. >> see where the afternoon takes us. nice wapner and the boys are at post nine. take it away. all right. thanks so much. don't feel left out, stephanie link. welcome to the halftime show. mees our starting lineup, stephanie is here, the coportfolio manager of jim cramer's charitable trust. josh brown the ceo, pete najarian option munster, and laszlo biryini, the president of biryini associates. our game plan today, looks like this. raging bull. the street's backer